WALSIN - Annual Report 2021 | FinancialReports.eu

Walsin Lihwa Corporation and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2021 and 2020 and Independent Auditors’ Report

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The Board of Directors and Shareholders Walsin Lihwa Corporation

Opinion

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

In our opinion, based on our audits and the reports of other auditors (as set out in the Other Matter section of our report), 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 International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. esponsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on our audits and the reports of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for 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 as of and for the year ended December 31, 2021. 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.

The following are the key audit matters of the consolidated financial statements of the Group as of and for the year ended December 31, 2021:

Sales Revenue Recognition

In 2021, the main products of the Group's wires and cables business unit include bare copper wires, wires and cables. The fluctuation in prices of bare copper wires is often subject to the movement in prices of raw materials, and thus some of the sales prices are set according to the market prices agreed under the contracts at the time of shipments. The Group prepares reports on point of sale transactions by referring to the actual shipments and market price adjustments as the basis for revenue recognition. Due to the large number of transactions and different market prices that have been agreed upon by customers, the processing, recording and maintenance of such reports are performed manually in which their amounts are significant to the consolidated financial statements. Therefore, the accuracy of revenue recognized from sales of bare copper wires was considered as a key audit matter. Refer to Notes 4 and 24 to the consolidated financial statements for related accounting policies and disclosure of information relating to revenue recognition.

Our audit procedures performed in respect of the above key audit matter were as follows:

We obtained an understanding and tested the reasonableness of revenue recognition policy and internal control procedures over the sales of bare copper wires, and evaluated the effectiveness of relevant internal controls.
We performed sampling and reconciliation of sales prices and quantities with their respective amounts in the contracts and verified the accuracy of market price adjustments.
We verified the accuracy of monthly reports by recalculating the sales revenue and confirmed that the recognized amounts were consistent with those recorded in the general ledger.

Other Matter

The financial statements of certain subsidiaries included in the consolidated financial statements as of and for the years ended December 31, 2021 and 2020 were audited by other auditors. Our opinion, insofar as it relates to such subsidiaries, is based solely on the reports of other auditors. The total assets of such subsidiaries amounted to NT$10,292,042 thousand and NT$10,148,841 thousand, which constituted 5.62% and 6.70% of the Group’s consolidated total assets, as of December 31, 2021 and 2020, respectively, and the total net operating revenue of such subsidiaries amounted to NT$17,799,306 thousand and NT$18,427,711 thousand, which constituted 11.36% and 16.37% of the Group’s consolidated total net operating revenue, for the years ended December 31, 2021 and 2020, respectively.

We did not audit the financial statements of some associates accounted for using the equity method included in the consolidated financial statements of the Group, but such statements were audited by other auditors. As of December 31, 2021, the total asset of these associates was NT$1,053,790 thousand, representing 0.58% of the consolidated total assets; the share of losses of these associates was NT$5,936 thousand, representing (0.03%) of the consolidated income before income tax.

We have also audited the parent company only financial statements of Walsin Lihwa Corporation as of and for the years ended December 31, 2021 and 2020 on which we have issued an unmodified opinion with other matter.

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 International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (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) 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 the 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.
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.
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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 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 for the year ended December 31, 2021 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 Wen-Yea Shyu and Ker-Chang Wu.

Deloitte & Touche Taipei, Taiwan Republic of China February 22, 2022

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance and cash flows in accordance with 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 applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and consolidated financial statements shall prevail.

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 4 and 6) Financial assets at fair value through profit or loss - current (Notes 4 and 7) Financial assets at amortized cost - current (Notes 4 and 9) Derivative financial assets for hedging - current (Notes 4 and 8) Contract assets - current (Notes 4 and 10) Notes receivable (Notes 4, 11 and 31) Trade receivables (Notes 4, 11 and 31) Finance lease receivables (Notes 4 and 12) Other receivables (Note 31) Inventories (Notes 4 and 13) Other financial assets - current (Notes 6 and 32) Other current assets Total current assets NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Notes 4 and 7) Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 14) Investments accounted for using the equity method (Notes 4 and 16) Property, plant and equipment (Notes 4 and 17) Right-of-use assets (Notes 4 and 18) Investment properties (Notes 4 and 19) Other intangible assets Deferred tax assets (Notes 4 and 26) Refundable deposits (Note 6) Long-term finance lease receivables - non-current (Notes 4 and 12) Other non-current assets (Notes 6 and 32) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 20) Financial liabilities at fair value through profit or loss - current (Notes 4 and 7) Contract liabilities - current Notes payable Trade payables Current tax liabilities (Notes 4 and 26) Other payables Lease liabilities - current (Notes 4 and 18) Current portion of long-term borrowings (Note 20) Other current liabilities (Note 30) Total current liabilities NON-CURRENT LIABILITIES Bonds payable (Note 21) Long-term borrowings (Note 20) Deferred tax liabilities (Notes 4 and 26) Lease liabilities - non-current (Notes 4 and 18) Net defined benefit liabilities - non-current (Notes 4 and 22) Other non-current liabilities (Note 28) Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF WLC (Note 23) Share capital Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Exchange differences on translation of the financial statements of foreign operations Unrealized gain on financial assets at fair value through other comprehensive income Other equity-other Total other equity Total equity attributable to owners of WLC NON-CONTROLLING INTERESTS Total equity TOTAL		2021 Amount % $ 10,387,581 6 16,147 - - - 89,232 - 5,750,344 3 2,627,411 2 11,045,689 6 58,042 - 1,620,595 1 31,659,723 17 530,650 - 5,535,226 3 69,320,640 38 - - 16,290,587 9 39,451,117 22 41,474,488 23 1,803,510 1 10,431,063 6 173,430 - 2,818,549 1 207,622 - 662,543 - 401,349 - 113,714,258 62 $ 183,034,898 100 $ 7,108,766 4 37,439 - 3,426 - 346,947 - 8,493,921 5 6,082,152 3 4,861,341 3 71,470 - 10,719,081 6 1,127,970 - 38,852,513 21 7,500,000 4 24,785,952 14 2,214,650 1 243,676 - 560,362 - 931,477 1 36,236,117 20 75,088,630 41 34,313,329 19 18,440,875 10 6,109,568 3 2,712,250 2 38,965,389 21 47,787,207 26 (6,100,687) (3) 11,534,267 6 (91,467) - 5,342,113 3 105,883,524 58 2,062,744 1 107,946,268 59 $ 183,034,898 100		2020
				Amount % $ 11,944,408 8 73,329 - 1,315,970 1 8,282 - 4,460,992 3 2,974,132 2 7,543,131 5 56,128 - 887,091 1 21,080,535 14 705,277 - 5,127,533 3 56,176,808 37 5,683,859 4 6,910,644 5 32,767,091 22 34,294,221 23 1,664,406 1 9,874,926 6 175,000 - 2,428,545 2 221,314 - 720,585 - 646,607 - 95,387,198 63 $ 151,564,006 100 $ 6,591,019 4 8,374 - 1,499 - 235,258 - 7,494,471 5 4,557,761 3 5,143,921 4 75,261 - 6,162,400 4 1,188,193 1 31,458,157 21 - - 31,406,829 21 214,457 - 274,442 - 384,299 - 544,992 - 32,825,019 21 64,283,176 42 32,260,002 21 15,690,406 11 5,428,200 4 3,110,410 2 27,791,577 18 36,330,187 24 (5,905,135) (4) 6,092,775 4 - - 187,640 - 84,468,235 56 2,812,595 2 87,280,830 58 $ 151,564,006 100

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

(With Deloitte & Touche auditors’ report dated February 22, 2022)

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(In Thousands of U.S. Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 4 and 6) Financial assets at fair value through profit or loss - current (Notes 4 and 7) Financial assets at amortized cost - current (Notes 4 and 9) Derivative financial assets for hedging - current (Notes 4 and 8) Contract assets - current (Notes 4 and 10) Notes receivable (Notes 4, 11 and 31) Trade receivables (Notes 4, 11 and 31) Finance lease receivables (Notes 4 and 12) Other receivables (Note 31) Inventories (Notes 4 and 13) Other financial assets - current (Notes 6 and 32) Other current assets Total current assets NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Notes 4 and 7) Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 14) Investments accounted for using the equity method (Notes 4 and 16) Property, plant and equipment (Notes 4 and 17) Right-of-use assets (Notes 4 and 18) Investment properties (Notes 4 and 19) Other intangible assets Deferred tax assets (Notes 4 and 26) Refundable deposits (Note 6) Long-term finance lease receivables - non-current (Notes 4 and 12) Other non-current assets (Notes 6 and 32) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Note 20) Financial liabilities at fair value through profit or loss - current (Notes 4 and 7) Contract liabilities - current Notes payable Trade payables Current tax liabilities (Notes 4 and 26) Other payables Lease liabilities - current (Notes 4 and 18) Current portion of long-term borrowings (Note 20) Other current liabilities (Note 30) Total current liabilities NON-CURRENT LIABILITIES Bonds payable (Note 21) Long-term borrowings (Note 20) Deferred tax liabilities (Notes 4 and 26) Lease liabilities - non-current (Notes 4 and 18) Net defined benefit liabilities - non-current (Notes 4 and 22) Other non-current liabilities (Note 28) Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF WLC (Note 23) Share capital Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Exchange differences on translation of the financial statements of foreign operations Unrealized gain on financial assets at fair value through other comprehensive income Other equity-other Total other equity Total equity attributable to owners of WLC NON-CONTROLLING INTERESTS Total equity TOTAL		2021 Amount % $ 375,274 6 583 - - - 3,224 - 207,744 3 94,921 2 399,049 6 2,097 - 58,548 1 1,143,776 17 19,171 - 199,971 3 2,504,358 38 - - 588,533 9 1,425,257 22 1,498,356 23 65,156 1 376,845 6 6,266 - 101,826 1 7,501 - 23,936 - 14,498 - 4,108,174 62 $ 6,612,532 100 $ 256,820 4 1,353 - 124 - 12,534 - 306,861 5 219,731 3 175,626 3 2,582 - 387,250 6 40,750 - 1,403,631 21 270,954 4 895,446 14 80,009 1 8,803 - 20,244 - 33,652 1 1,309,108 20 2,712,739 41 1,239,643 19 666,217 10 220,721 3 97,986 2 1,407,709 21 1,726,416 26 (220,400) (3) 416,700 6 (3,304) - 192,996 3 3,825,272 58 74,521 1 3,899,793 59 $ 6,612,532 100		2020
				Amount % $ 431,518 8 2,649 - 47,542 1 299 - 161,163 3 107,447 2 272,512 5 2,028 - 32,048 1 761,580 14 25,480 - 185,243 3 2,029,509 37 205,342 4 249,662 5 1,183,782 22 1,238,953 23 60,130 1 356,753 6 6,322 - 87,736 2 7,995 - 26,033 - 23,361 - 3,446,069 63 $ 5,475,578 100 $ 238,115 4 303 - 54 - 8,499 - 270,754 5 164,659 3 185,835 4 2,719 - 222,630 4 42,926 1 1,136,494 21 - - 1,134,640 21 7,748 - 9,915 - 13,884 - 19,689 - 1,185,876 21 2,322,370 42 1,165,463 21 566,850 11 196,105 4 112,370 2 1,004,031 18 1,312,506 24 (213,337) (4) 220,115 4 - - 6,778 - 3,051,597 56 101,611 2 3,153,208 58 $ 5,475,578 100

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

(With Deloitte & Touche auditors’ report dated February 22, 2022)

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE (Notes 4 and 24) OPERATING COSTS (Notes 4 and 13) GROSS PROFIT OPERATING EXPENSES Selling and marketing expenses General and administrative expenses Research and development expenses Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Interest income Dividend income Other income Gain (loss) on disposal of property, plant and equipment Gain on valuation of financial assets and liabilities at fair value through profit or loss (Recognition) reversal of impairment loss (Note 25) Other expenses Foreign exchange loss, net Interest expense Gain (loss) on disposal of investments (Note 25) Share of profit of associates accounted for using the equity method Total non-operating income and expenses PROFIT BEFORE INCOME TAX FROM CONTINUING OPERATIONS INCOME TAX EXPENSE (Notes 4 and 26) NET PROFIT FOR THE YEAR		2021 Amount % $ 156,664,766 100 (136,855,301) (88) 19,809,465 12 2,487,342 2 3,784,683 2 191,888 - 6,463,913 4 13,345,552 8 91,952 - 561,499 - 549,102 - 20,468 - 647,228 - (693,892) - (231,656) - (237,222) - (417,951) - 679,207 1 4,808,211 3 5,776,946 4 19,122,498 12 (3,865,184) (2) 15,257,314 10		2020
				Amount % $ 112,546,603 100 (100,078,265) (89) 12,468,338 11 1,868,164 2 3,091,413 3 123,699 - 5,083,276 5 7,385,062 6 261,523 - 110,990 - 136,095 - (7,979) - 732,121 1 674 - (381,505) - (66,726) - (539,982) - (75,927) - 1,696,319 1 1,865,603 2 9,250,665 8 (2,244,864) (2) 7,005,801 6 (Continued)

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OTHER COMPREHENSIVE INCOME (LOSS) Items that may not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans Unrealized gain on financial assets at fair value through other comprehensive income Share of the other comprehensive income of associates accounted for using the equity method Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of the financial statements of foreign operations Share of the other comprehensive loss of associates accounted for using the equity method Other comprehensive income for the year TOTAL COMPREHENSIVE INCOME FOR THE YEAR NET INCOME ATTRIBUTABLE TO: Owners of WLC Non-controlling interests TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of WLC Non-controlling interests EARNINGS PER SHARE (Note 27) Basic Diluted		2021 Amount % $ (153,272) - 2,594,208 1 2,906,573 2 5,347,509 3 (105,982) - (127,834) - (233,816) - 5,113,693 3 $ 20,371,007 13 $ 14,642,629 9 614,685 1 $ 15,257,314 10 $ 19,791,160 13 579,847 - $ 20,371,007 13 $ 4.27 $ 4.26		2020
				Amount % $ 36,292 - 1,077,834 1 2,664,780 2 3,778,906 3 (358,081) - (82,616) - (440,697) - 3,338,209 3 $ 10,344,010 9 $ 6,691,149 6 314,652 - $ 7,005,801 6 $ 10,114,207 9 229,803 - $ 10,344,010 9 $ 2.04 $ 2.04

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

(With Deloitte & Touche auditors’ report dated February 22, 2022)

(Concluded)

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of U.S. Dollars, Except Earnings Per Share)

OPERATING REVENUE (Notes 4 and 24) OPERATING COSTS (Notes 4 and 13) GROSS PROFIT OPERATING EXPENSES Selling and marketing expenses General and administrative expenses Research and development expenses Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES Interest income Dividend income Other income Gain (loss) on disposal of property, plant and equipment Gain on valuation of financial assets and liabilities at fair value through profit or loss (Recognition) reversal of impairment loss (Note 25) Other expenses Foreign exchange loss, net Interest expense Gain (loss) on disposal of investments (Note 25) Share of profit of associates accounted for using the equity method Total non-operating income and expenses PROFIT BEFORE INCOME TAX FROM CONTINUING OPERATIONS INCOME TAX EXPENSE (Notes 4 and 26) NET PROFIT FOR THE YEAR		2021 Amount % $ 5,659,854 100 (4,944,194) (88) 715,660 12 89,861 2 136,730 2 6,932 - 233,523 4 482,137 8 3,322 - 20,285 - 19,838 - 739 - 23,383 - (25,068) - (8,369) - (8,570) - (15,099) - 24,538 1 173,707 3 208,706 4 690,843 12 (139,639) (2) 551,204 10		2020
				Amount % $ 4,065,990 100 (3,615,544) (89) 450,446 11 67,491 2 111,684 3 4,469 - 183,644 5 266,802 6 9,448 - 4,010 - 4,917 - (288) - 26,449 1 24 - (13,782) - (2,411) - (19,508) - (2,743) - 61,283 1 67,399 2 334,201 8 (81,101) (2) 253,100 6 (Continued)

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of U.S. Dollars, Except Earnings Per Share)

OTHER COMPREHENSIVE INCOME (LOSS) Items that may not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans Unrealized gain on financial assets at fair value through other comprehensive income Share of the other comprehensive income of associates accounted for using the equity method Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of the financial statements of foreign operations Share of the other comprehensive loss of associates accounted for using the equity method Other comprehensive income for the year TOTAL COMPREHENSIVE INCOME FOR THE YEAR NET INCOME ATTRIBUTABLE TO: Owners of WLC Non-controlling interests TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of WLC Non-controlling interests EARNINGS PER SHARE (Note 26) Basic Diluted		2021 Amount % $ (5,537) - 93,721 1 105,006 2 193,190 3 (3,829) - (4,618) - (8,447) - 184,743 3 $ 735,947 13 $ 528,997 9 22,207 1 $ 551,204 10 $ 714,999 13 20,948 - $ 735,947 13 $ 0.07 $ 0.07		2020
				Amount % $ 1,311 - 38,939 1 96,271 2 136,521 3 (12,936) - (2,985) - (15,921) - 120,600 3 $ 373,700 9 $ 241,732 6 11,367 - $ 253,099 6 $ 365,398 9 8,302 - $ 373,700 9 $ 0.03 $ 0.03




		$		$
		$		$
		$		$
		$		$
		$		$

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

(With Deloitte & Touche auditors’ report dated February 22, 2022)

(Concluded)

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WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

	Equity Attributable	to Owners of WLC
Share Capital Capital Surplus $ 33,260,002 $ 16,055,238 - - - - - - - - - 135,304 - - - - - - - - (1,000,000 ) (500,108 ) - (28 ) - - 32,260,002 15,690,406 - - - - - - - 3,124 - (26,782 ) 2,053,327 2,771,798 - - - - - - - 2,329 - - $ 34,313,329 $ 18,440,875	Retained Earnings Legal Reserve Special Reserve Unappropriated Earnings $ 5,113,232 $ 4,043,138 $ 22,023,141 314,968 - (314,968 ) - (932,728 ) 932,728 - - (1,663,000 ) - - (2,481 ) - - 97,145 - - 6,691,149 - - 27,863 - - 6,719,012 - - - - - - - - - - - - 5,428,200 3,110,410 27,791,577 681,368 - (681,368 ) - (398,160 ) 398,160 - - (3,088,200 ) - - - - - 77,160 - - - - - 14,642,629 - - (174,569) - - 14,468,060 - - - - - - $ 6,109,568 $ 2,712,250 $ 38,965,389	Other Equity	Other Treasury Shares $ - $ - - - - - - - - - - - - - - - - - - (1,500,108 ) - 1,500,108 - - - - - - - - - - - - - - (91,467 ) - - - - - - - - - - - - - $ (91,467) $ -
		Exchange Differences on Translation the Financial Statement of Unrealized Valuation Gain (Loss) on Financial Assets at Fair Value through Other Foreign Operations Comprehensive Income $ (5,546,359 ) $ 2,435,949 - - - - - - - - - (97,145 ) - - (358,776) 3,753,971 (358,776) 3,753,971 - - - - - - - - (5,905,135 ) 6,092,775 - - - - - - - - - (77,160 ) - - - - (195,552) 5,518,652 (195,552) 5,518,652 - - - - $ (6,100,687) $ 11,534,267

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

(With Deloitte & Touche auditors’ report dated February 22, 2022)

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WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of U.S. Dollars)

BALANCE AT JANUARY 1, 2020 Appropriation of 2019 earnings (Note 23) Legal reserve Special reserve Cash dividends distributed by WLC Excess of the carrying amount over the consideration received of the subsidiaries' net assets during disposal Change in capital surplus from investments in associates under the equity method Net profit for the year ended December 31, 2020 Other comprehensive income (loss) for the year ended December 31, 2020, net of income tax Total comprehensive income (loss) for the year ended December 31, 2020 Buy-back of ordinary shares Cancelation of treasury shares Others Changes in non-controlling interests BALANCE, DECEMBER 31, 2020 Appropriation of 2020 earnings (Note 23) Legal reserve Special reserve Cash dividends distributed by WLC Excess of the carrying amount over the consideration received of the subsidiaries' net assets during disposal Change in capital surplus and retained earnings from investments in associates under the equity method Issuance of new shares in exchange for the shares of another company Net profit for the year ended December 31, 2021 Other comprehensive income (loss) for the year ended December 31, 2021, net of income tax Total comprehensive income (loss) for the year ended December 31, 2021 Others Changes in non-controlling interests BALANCE, DECEMBER 31, 2021		Equity Attributable	to Owners of WLC		Total Non-controlling Interests $ 2,795,678 $ 42,694 - - - - (60,081 ) - (91 ) - 4,888 - 241,732 11,367 123,666 (3,065) 365,398 8,302 (54,194 ) - - - (1 ) - - 50,615 3,051,597 101,611 - - - - (11,567 ) - 113 - (4,272 ) - 174,318 - 528,997 22,207 186,002 (1,259) 714,999 20,948 84 - - (48,038) $ 3,925,272 $ 74,521	Total Equity $ 2,838,372 - - (60,081 ) (91 ) 4,888 253,099 120,601 373,700 (54,194 ) - (1 ) 50,615 3,153,208 - - (11,567 ) 113 (4,272 ) 174,318 551,204 184,743 735,947 84 (48,038) $ 3,999,793
	Share Capital Capital Surplus $ 1,201,590 $ 580,030 - - - - - - - - - 4,888 - - - - - - - - (36,127 ) (18,067 ) - (1 ) - - 1,165,463 566,850 - - - - - - - 113 - (968 ) 74,180 100,138 - - - - - - - 84 - - $ 1,239,643 $ 666,217	Retained Earnings Legal Reserve Special Reserve Unappropriated Earnings $ 184,727 $ 146,067 $ 795,634 11,378 - (11,378 ) - (33,697 ) 33,697 - - (60,081 ) - - (91 ) - - 3,511 - - 241,732 - - 1,007 - - 242,739 - - - - - - - - - - - - 196,105 112,370 1,004,031 24,616 - (24,616 ) - (14,384 ) 14,384 - - (11,567 ) - - - - - 2,788 - - - - - 528,997 - - (6,308) - - 522,689 - - - - - - $ 220,721 $ 97,986 $ 1,507,709	Other Equity	Other Treasury Shares $ - $ - - - - - - - - - - - - - - - - - - (54,194 ) - 54,194 - - - - - - - - - - - - - - (3,304 ) - - - - - - - - - - - - - $ (3,304) $ -
			Exchange Differences on Translation the Financial Statement of Unrealized Valuation Gain (Loss) on Financial Assets at Fair Value through Other Foreign Operations Comprehensive Income $ (200,374 ) $ 88,004 - - - - - - - - - (3,511 ) - - (12,963) 135,622 (12,963) 135,622 - - - - - - - - (213,337 ) 220,115 - - - - - - - - - (2,788 ) - - - - (7,063) 199,373 (7,063) 199,373 - - - - $ (220,400) $ 416,700

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

(With Deloitte & Touche auditors’ report dated February 22, 2022)

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WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expense Amortization expense Expected credit (reversed) loss recognized on trade receivables Net gain on fair value change of financial assets and liabilities as at fair value through profit or loss Interest expense Interest income Dividend income Compensation cost of employees share options Share of profit of associates accounted for using the equity method (Gain) loss on disposal of property, plant and equipment (Gain) loss on disposal of investments Impairment loss (reversed) recognized on non-financial assets Unrealized loss on foreign currency exchange Gain on lease modification Changes in operating assets and liabilities Increase in contract assets Decrease in notes receivable (Increase) decrease in trade receivables (Increase) decrease in other receivables (Increase) decrease in inventories Increase in other current assets Decrease (increase) in other financial assets Increase in other operating assets Increase in financial liabilities held for trading Increase in contract liabilities Increase (decrease) in notes payable Increase in trade payables Increase in other payables (Decrease) increase in other current liabilities Increase (decrease) in net defined benefit liabilities Increase (decrease) in other operating liabilities Cash generated from operations Interest received Dividends received Interest paid Income tax paid Net cash generated from operating activities	2021 $ 19,122,498 2,799,315 31,498 (7,901) (647,228) 417,951 (91,952) (561,499) 11,490 (4,808,211) (20,468) (679,207) 693,892 89,472 - (1,289,352) 346,721 (3,494,657) (775,485) (11,987,254) (45,654) 174,627 (626,734) 513,105 1,927 111,689 999,450 674,668 (60,224) 176,063 565,146 1,633,686 69,679 1,359,121 (491,575) (1,254,756) 1,316,155	2020 $ 9,250,665 2,405,513 35,485 12,209 (732,121) 539,982 (261,523) (110,990) 8,804 (1,696,319) 7,979 75,927 (674) 962 (38) (446,320) 602,201 311,810 467,742 938,706 (2,794,980) (387,544) (366,618) 75,283 981 (107,151) 526,654 152,124 532,710 (152,315) (133,769) 8,755,375 294,277 789,298 (534,655) (2,156,365) 7,147,930

(Continued)

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WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at fair value through other comprehensive income Capital reduction and refund from financial assets at fair value through other comprehensive income Disposal of financial assets at amortized cost Purchase of financial assets at fair value through profit or loss Disposal of financial assets at fair value through profit or loss Acquisition of investments accounted for using the equity method Net cash flow on disposal of subsidiaries Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Payments for intangible assets Payments for right-of-use assets Payments for investment properties Other investing activities Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in short-term borrowings Proceeds from bonds payable Proceeds from long-term borrowings Repayment of long-term borrowings Repayment of the principal portion of lease liabilities Cash dividends paid Payments for buy-back of ordinary shares Acquisition of subsidiaries Changes in non-controlling interests Other financing activities Net cash (used in) generated from financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	2021 $ (1,985,957) 3,615 1,325,403 - 4,948,895 (3,227) - (6,415,398) 50,410 13,208 (6,248) (222,330) (2,362) 1,308,017 (985,974) 485,651 7,500,000 4,000,000 (6,064,196) (89,794) (3,088,030) - (5,003,810) (21,666) 2,329 (2,279,516) 392,508 (1,556,827) 11,944,408 $ 10,387,581	2020 $ (507,274) - 252,140 (5,353,790) - - 2,025,974 (8,816,415) 21,684 (36,228) (9,327) (18,989) (546) 132,890 (12,309,881) (5,804,988) - 20,640,014 (6,564,196) (83,862) (1,662,891) (1,500,108) - 586,927 (28) 5,610,868 (257,515) 191,402 11,753,006 $ 11,944,408

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

(With Deloitte & Touche auditors’ report dated February 22, 2022)

(Concluded)

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WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of U.S. Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expense Amortization expense Expected credit (reversed) loss recognized on trade receivables Net gain on fair value change of financial assets and liabilities as at fair value through profit or loss Interest expense Interest income Dividend income Compensation cost of employees share options Share of profit of associates accounted for using the equity method (Gain) loss on disposal of property, plant and equipment (Gain) loss on disposal of investments Impairment loss (reversed) recognized on non-financial assets Unrealized loss on foreign currency exchange Gain on lease modification Changes in operating assets and liabilities Increase in contract assets Decrease in notes receivable (Increase) decrease in trade receivables (Increase) decrease in other receivables (Increase) decrease in inventories Increase in other current assets Decrease (increase) in other financial assets Increase in other operating assets Increase in financial liabilities held for trading Increase in contract liabilities Increase (decrease) in notes payable Increase in trade payables Increase in other payables (Decrease) increase in other current liabilities Increase (decrease) in net defined benefit liabilities Increase (decrease) in other operating liabilities Cash generated from operations Interest received Dividends received Interest paid Income tax paid Net cash generated from operating activities	2021 $ 690,843 101,131 1,138 (285) (23,383) 15,099 (3,322) (20,285) 415 (173,707) (739) (24,538) 25,068 3,232 - (46,581) 12,526 (126,252) (28,016) (433,066) (1,649) 6,309 (22,642) 18,537 70 4,035 36,107 24,374 (2,176) 6,361 20,417 59,021 2,517 49,101 (17,759) (45,331) 47,549	2020 $ 334,200 86,904 1,282 441 (26,449) 19,508 (9,448) (4,010) 318 (61,283) 288 2,743 (24) 35 (1) (16,124) 21,756 11,265 16,898 33,913 (100,975) (14,001) (13,245) 2,720 35 (3,871) 19,027 5,496 19,245 (5,503) (4,833) 316,307 10,631 28,515 (19,316) (77,903) 258,234 (Continued)

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WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of U.S. Dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at fair value through other comprehensive income Capital reduction and refund from financial assets at fair value through other comprehensive income Disposal of financial assets at amortized cost Purchase of financial assets at fair value through profit or loss Disposal of financial assets at fair value through profit or loss Acquisition of investments accounted for using the equity method Net cash flow on disposal of subsidiaries Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (increase) in refundable deposits Payments for intangible assets Payments for right-of-use assets Payments for investment properties Other investing activities Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in short-term borrowings Proceeds from bonds payable Proceeds from long-term borrowings Repayment of long-term borrowings Repayment of the principal portion of lease liabilities Cash dividends paid Payments for buy-back of ordinary shares Acquisition of subsidiaries Changes in non-controlling interests Other financing activities Net cash (used in) generated from financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	2021 $ (71,747) 131 47,883 - 178,790 (117) - (231,770) 1,821 477 (226) (8,032) (85) 47,255 (35,620) 17,545 270,954 144,509 (219,082) (3,244) (111,562) - (180,773) (783) 84 (82,352) 14,179 (56,244) 431,518 $ 375,274	2020 $ (18,326) - 9,109 (193,417) - - 73,193 (318,512) 783 (1,309) (337) (686) (20) 4,801 (444,721) (209,718) - 745,665 (237,146) (3,030) (60,076) (54,195) - 21,204 (1) 202,703 (9,301) 6,915 424,603 $ 431,518

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

(With Deloitte & Touche auditors’ report dated February 22, 2022)

(Concluded)

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WALSIN LIHWA CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

1. GENERAL INFORMATION

Walsin Lihwa Corporation (“WLC”) was incorporated in December 1966 and commenced business in December 1966. WLC made various investments in construction, electronics, material science, real estate, etc., to diversify its operations. WLC’s main products are wires, cables and stainless steel.

WLC’s shares have been listed on the Taiwan Stock Exchange (TWSE) since November 1972. In October 1995 and November 2010, WLC increased its share capital and issued Global Depositary Receipts (GDR), which were listed on the Luxembourg Stock Exchange under stock number 168527.

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

2. APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements of WLC and its subsidiaries (collectively, the “Group”) were approved by the board of directors of WLC on February 22, 2022.

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

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

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

b. The IFRSs endorsed by the FSC for application starting from 2022

New IFRSs “Annual Improvements to IFRS Standards 2018-2020” Amendments to IFRS 3 “Reference to the Conceptual Framework” Amendments to IAS 16 “Property, Plant and Equipment - Proceeds before Intended Use” Amendments to IAS 37 “Onerous Contracts - Cost of Fulfilling a Contract”	Effective Date Announced by the IASB
	January 1, 2022 (Note 1) January 1, 2022 (Note 2) January 1, 2022 (Note 3) January 1, 2022 (Note 4)

Note 1: The amendments to IFRS 9 will be applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” will be applied prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” will be applied retrospectively for annual reporting periods beginning on or after January 1, 2022.
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Note 2: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.
Note 3: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.
Note 4: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.
1) Annual Improvements to IFRS Standards 2018-2020

Several standards, including IFRS 9 “Financial Instruments”, were amended in the annual improvements. IFRS 9 requires the comparison of the discounted present value of the cash flows under the new terms, including any fees paid net of any fees received, with that of the cash flows under the original financial liability when there is an exchange or modification of debt instruments. The new terms and the original terms are substantially different if the difference between those discounted present values is at least 10%. The amendments to IFRS 9 clarify that the only fees that should be included in the above assessment are those fees paid or received between the borrower and the lender.

2) Amendments to IFRS 3 “Reference to the Conceptual Framework”

The amendments replace the references to the Conceptual Framework of IFRS 3 and specify that the acquirer shall apply IFRIC 21 “Levies” to determine whether the event that gives rise to a liability for a levy has occurred at the acquisition date.

3) Amendments to IAS 16 “Property, Plant and Equipment: Proceeds before Intended Use”

The amendments prohibit an entity from deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The cost of those items is measured in accordance with IAS 2 “Inventories”. Any proceeds from selling those items and the cost of those items are recognized in profit or loss in accordance with applicable standards.

4) Amendments to IAS 37 “Onerous Contracts - Cost of Fulfilling a Contract”

The amendments specify that when assessing whether a contract is onerous, the “cost of fulfilling a contract” includes both the incremental costs of fulfilling that contract (for example, direct labor and materials) and an allocation of other costs that relate directly to fulfilling contracts (for example, an allocation of depreciation for an item of property, plant and equipment used in fulfilling the contract).

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group has assessed that the application of other standards and interpretations will not have a material impact on the Group’s financial position and financial performance.

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

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

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

IFRS 17 “Insurance Contracts”

Amendments to IFRS 17

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

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

Amendments to IAS 1 “Disclosure of Accounting Policies”

Amendments to IAS 8 “Definition of Accounting Estimates”

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

Effective Date
Announced by IASB (Note 1)

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

Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 3: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.
Note 4: Except that deferred taxes will be recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments will be applied prospectively to transactions that occur on or after January 1, 2022.
1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and Its Associate or Joint Venture”

The amendments stipulate that, when the Group sells or contributes assets that constitute a business (as defined in IFRS 3) to an associate, the gain or loss resulting from the transaction is recognized in full. Also, when the Group loses control of a subsidiary that contains a business but retains significant influence, the gain or loss resulting from the transaction is recognized in full.

Conversely, when the Group sells or contributes assets that do not constitute a business to an associate, the gain or loss resulting from the transaction is recognized only to the extent of the Group’s interest as an unrelated investor in the associate, i.e., the Group’s share of the gain or loss is eliminated. Also, when the Group loses control of a subsidiary that does not contain a business but retains significant influence over an associate, the gain or loss resulting from the transaction is recognized only to the extent of the Group’s interest as an unrelated investor in the associate, i.e., the Group’s share of the gain or loss is eliminated.

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

The amendments clarify that for a liability to be classified as non-current, the Group shall assess whether it has the right at the end of the reporting period to defer settlement of the liability for at least twelve months after the reporting period. If such rights are in existence at the end of the reporting period, the liability is classified as non-current regardless of whether the Group will exercise that right. The amendments also clarify that, if the right to defer settlement is subject to compliance with specified conditions, the Group must comply with those conditions at the end of the reporting period even if the lender does not test compliance until a later date.

The amendments stipulate that, for the purpose of liability classification, the aforementioned settlement refers to a transfer of cash, other economic resources or the Group’s own equity instruments to the counterparty that results in the extinguishment of the liability. However, if the terms of a liability that could, at the option of the counterparty, result in its settlement by a transfer of the Group’s own equity instruments, and if such option is recognized separately as equity in accordance with IAS 32: Financial Instruments: Presentation, the aforementioned terms would not affect the classification of the liability.

3) Amendments to IAS 1 “Disclosure of Accounting Policies”

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

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

The amendments also illustrate that accounting policy information is likely to be considered as material to the financial statements if that information relates to material transactions, other events or conditions and:

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

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

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

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

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair values. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

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

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

Current assets include:

Assets held primarily for the purpose of trading;
Assets expected to be realized within 12 months after the reporting period; and
Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

Liabilities held primarily for the purpose of trading;
Liabilities due to be settled within 12 months after the reporting period and
Liabilities for which WLC does not have an unconditional right to defer settlement for at least 12 months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Assets and liabilities that are not classified as current are classified as non-current.

d. Basis of consolidation
Principle of preparation of the consolidated financial statements

The consolidated financial statements incorporate the financial statements of WLC and the entities controlled by WLC. Control is achieved when the Group has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

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

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

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

Total comprehensive income of subsidiaries is attributed to the owners of the Group and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the Group’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Group.

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When the Group loses control of a subsidiary, a gain or loss is recognized in profit or loss and is calculated as the difference between (i) the aggregate of the fair value of the consideration received and 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) and liabilities and any non-controlling interests of the former subsidiary at their carrying amounts at the date when control is lost. The Group accounts for all amounts recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Group had directly disposed of the related assets or liabilities.

Refer to Note 15 and Table 8 for the percent of ownership, main businesses and details of the subsidiaries.

e. Foreign currencies

In preparing the financial statements of each individual company entity, transactions in currencies other than the entity’s functional currency are recognized at the rates of exchange prevailing at the dates of the transactions.

Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary items that are measured at historical cost in a foreign currency are not retranslated.

For the purposes of presenting consolidated financial statements, the assets and liabilities of the Group’s foreign operations (including of the subsidiaries and associates in other countries with currencies used different from the Group) are translated into New Taiwan dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising are recognized in other comprehensive income (attributed to the owners of the Group and non-controlling interests as appropriate).

On the disposal of a foreign operation (i.e. a disposal of the Group’s entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation, or a disposal involving loss of significant influence over an associate that includes a foreign operation), all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Group are reclassified to profit or loss.

In relation to a partial disposal of a subsidiary that does not result in the Group losing control over the subsidiary, the proportionate share of accumulated exchange differences are re-attributed to non-controlling interests of the subsidiary and are not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

f. Inventories

Inventories consist of raw materials, supplies, finished goods and work-in-process and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to Group similar or related items. Net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at weighted-average cost on the balance sheet date.

Inventories include real estate and constructions-in-progress, which are stated at acquisition costs plus construction costs incurred. Interest expenses on constructions-in-progress are capitalized.

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g. Investment in associates

An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint venture.

The results and assets and liabilities of associates are incorporated in these consolidated financial statements using the equity method of accounting. Under the equity method, an investment in an associate is initially recognized at cost and adjusted thereafter to recognize the Group’s share of the profit or loss and other comprehensive income of the associate. The Group also recognizes the changes in the Group’s share of equity of associates.

Any excess of the cost of acquisition over the Group’s share of the net fair value of the identifiable assets and liabilities of an associate recognized at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Group’s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

When the Group subscribes for additional new shares of the associate, at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group’s proportionate interest in the associate. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in the Group’s share of equity of associates. If the Group’s ownership interest is reduced due to the additional subscription of the new shares of associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate is reclassified to profit or loss on the same basis as would be required if the investee had directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for by the equity method is insufficient, the shortage is debited to retained earnings.

When the Group’s share of losses of an associate equals or exceeds its interest in that associate, the Group discontinues recognizing its share of further losses. Additional losses and liabilities are recognized only to the extent that the Group has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

The entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is deducted from investment and carrying amount of investment is net of impairment loss. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Group discontinues the use of the equity method from the date on which it ceases to have significant influence over the associate. Any retained investment is measured at fair value at that date and the fair value is regarded as its fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate. The Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities.

When the Group entity transacts with its associate, profits and losses resulting from the transactions with the associate are recognized in the Group’s consolidated financial statements only to the extent of interests in the associate that are not related to the Group.

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h. Property, plant and equipment

Property, plant and equipment are stated at cost, less subsequent accumulated depreciation and subsequent accumulated impairment loss.

Property, plant and equipment in the course of construction for production, supply or administrative purposes are measured at cost, less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such properties are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

Depreciation on property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

i. Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation (including property under construction for such purposes). Investment properties also include land held for a currently undetermined future use.

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method.

For a transfer from the investment properties classification to property, plant and equipment, the deemed cost of the property for subsequent accounting is its carrying amount at the commencement of owner-occupation.

For a transfer from the property, plant and equipment classification to investment properties, the deemed cost of the property for subsequent accounting is its carrying amount at the end of owner-occupation.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset and is included in profit or loss.

j. Intangible assets

Intangible assets are measured initially at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful life, residual value, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are measured at cost less accumulated impairment loss.

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset, are recognized in profit or loss.

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k. Impairment of property, plant and equipment, right-of-use asset, investment properties, intangible assets other than goodwill and assets related to contract costs

At the end of each reporting period, the Group reviews the carrying amounts of its impairment of property, plant and equipment, right-of-use asset, intangible assets other than goodwill and assets related to contract costs, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the individual cash-generating units on a reasonable and consistent basis of allocation.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually and whenever there is an indication that the assets may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount.

When an impairment loss subsequently is reversed, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized immediately in profit or loss.

l. Financial instruments

Financial assets and financial liabilities are recognized when a company entity becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

Financial assets

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

1) Measurement category

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI.

a) Financial assets at FVTPL

Financial assets are classified as at FVTPL when such a financial asset is mandatorily classified or designated as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

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Financial assets at FVTPL are subsequently measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss. Fair value is determined in the manner described in Note 30.

b) Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

i. The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
ii. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, trade receivables at amortized cost are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of such a financial asset, except for:

i. Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of such financial assets; and
ii. Financial assets that are not credit-impaired on purchase or origination but have subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition or time deposits with original maturities within 3-12 months from the date of acquisition and the interest paid to deposits which are terminated before maturity are higher than demand deposits, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

c) Investments in equity instruments at FVTOCI

On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments, instead, they will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Group’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

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2) Impairment of financial assets

The Group recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables), investments in debt instruments that are measured at FVTOCI, operating/finance lease receivables, as well as contract assets.

The Group always recognizes lifetime Expected Credit Losses (ECLs) for trade receivables and operating/finance lease receivables. For all other financial instruments, the Group recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represents the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

For internal credit risk management purposes, the Group considers the following situations as indication that a financial asset is in default (without taking into account any collateral held by the Group):

a) Internal or external information shows that the debtor is unlikely to pay its creditors.
b) Financial asset is more than 90 days past due unless the Group has reasonable and corroborative information to support a more lagged default criterion.

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and the carrying amounts of such financial assets are not reduced.

3) Derecognition of financial assets

The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. The cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

Equity instruments

Equity instruments issued by the Group are recognized at the proceeds received, net of direct issue costs.

Repurchase of WLC’s own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issuance or cancellation of WLC’s own equity instruments.

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Financial liabilities

1) Subsequent measurement

Except the following situation, all the financial liabilities are measured at amortized cost using the effective interest method:

a) Financial liabilities at FVTPL

Financial liabilities are classified as at FVTPL when the financial liabilities are either held for trading or are designated as at FVTPL.

Financial liabilities held for trading are stated at fair value, with any gain or loss arising on remeasurement recognized in profit or loss. Fair value is determined in the manner described in Note 30.

b) Financial guarantee contracts

Financial guarantee contracts issued by the Group, if not designated as at FVTPL, are subsequently measured at the higher of:

i. The amount of the loss allowance reflecting expected credit losses; and
ii. The amount initially recognized less, where appropriate, the cumulative amount of income recognized in accordance with the revenue recognition policies.
2) Derecognition of financial liabilities

The difference between the carrying amount of the financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

Derivative financial instruments

The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign exchange rate risks, including foreign exchange forward contracts, interest rate swaps and cross currency swaps.

Derivatives are initially recognized at fair value at the date on which the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument; in which event, the timing of the recognition in profit or loss depends on the nature of the hedging relationship. When the fair value of a derivative financial instrument is positive, the derivative is recognized as a financial asset; when the fair value of a derivative financial instrument is negative, the derivative is recognized as a financial liability.

Derivatives embedded in hybrid contracts that contain financial asset hosts that is within the scope of IFRS 9 are not separated; instead, the classification is determined in accordance with the entire hybrid contract. Derivatives embedded in non-derivative host contracts that are not financial assets that is within the scope of IFRS 9 (e.g. financial liabilities) are treated as separate derivatives when they meet the definition of a derivative; their risks and characteristics are not closely related to those of the host contracts; and the host contracts are not measured at FVTPL.

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m. Hedge accounting

The Group designates certain hedging instruments, which include derivatives, embedded derivatives and non-derivatives in respect of foreign currency risk, as either fair value hedges or cash flow hedges. Hedges of foreign exchange risk on firm commitments are accounted for as cash flow hedges.

1) Fair value hedges

Gain or losses on derivatives that are designated and qualify as fair value hedges are recognized in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk. The change in the fair value of the hedging instrument and the change in the hedged item attributable to the hedged risk are recognized in profit or loss in the line item relating to the hedged item.

2) Cash flow hedges

The effective portion of gains or losses on derivatives that are designated and qualify as cash flow hedges is recognized in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss.

The associated gains or losses that were recognized in other comprehensive income are reclassified from equity to profit or loss as a reclassification adjustment in the line item relating to the hedged item in the same period when the hedged item affects profit or loss. If a hedge of a forecast transaction subsequently results in the recognition of a non-financial asset or a non-financial liability, the associated gains and losses that were recognized in other comprehensive income are removed from equity and included in the initial cost of the non-financial asset or non-financial liability.

The Group discontinues hedge accounting only when the hedging relationship ceases to meet the qualifying criteria; for instance, when the hedging instrument expires or is sold, terminated or exercised. The cumulative gain or loss on the hedging instrument that has been previously recognized in other comprehensive income from the period when the hedge was effective remains separately in equity until the forecast transaction occurs. When a forecast transaction is no longer expected to occur, the gain or loss accumulated in equity is recognized immediately in profit or loss.

n. Levies

Levies imposed by a government are accrued as other liabilities when the transactions or activities that trigger the payment of such levies occur. If the obligating event occurs over a period of time, the liability is recognized progressively. If an obligation to pay a levy is triggered upon reaching a minimum threshold, the liability is recognized when that minimum threshold is reached.

o. Provisions

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

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p. Revenue recognition

The Group identifies contracts with the customers, allocates the transaction price to the performance obligations and recognizes revenue when performance obligations are satisfied.

1) Revenue from the sale of goods and real estate

Revenue from the sale of goods and real estate comes from sales of wires, cables, stainless steel and real estate. Sales of wires, cables and stainless steel are recognized as revenue when the customer has full discretion over the manner of distribution and the price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence.

The Group does not recognize revenue on materials delivered to subcontractors because this delivery does not involve a transfer of control.

Regarding contracts relating to the sale of real estate in the course of ordinary activities, a fixed transaction price is received in instalments and recognized as a contract liability. The transaction price, after adjusting for the effect of the significant financing component, is recognized as revenue when the construction is completed and the real estate is transferred to the buyer.

2) Revenue from the others

a) Revenue from the rendering of services

Service income is recognized when services are rendered. Revenue should be recognized over time by measuring the progress toward complete satisfaction of the performance obligation. Payment for installation services is not due from the customer until the installation services are complete, and therefore, a contract asset is recognized over the period in which the installation services are performed. The contract asset is reclassified to trade receivables when installation is complete.

b) Construction contract revenue

A contract asset is recognized during construction and is reclassified to trade receivables at the point at which it is invoiced to the customer. If the milestone payment exceeds the revenue recognized to date, then the Group recognizes a contract liability for the difference. Certain payments retained by the customer as specified in the contract are intended to ensure that the Group adequately completes all of its contractual obligations. Such retention receivables are recognized as contract assets until the Group satisfies its performance obligation.

When it is not able to reasonably measure the Group’s progress toward satisfaction of the performance obligation but expects to recover costs, the Group recognizes revenue only to the extent of costs incurred.

q. Leases

At the inception of a contract, the Group assesses whether the contract is, or contains, a lease.

a) The Group as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

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Under finance leases, the lease payments comprise fixed payments and variable lease payments which depend on an index or a rate. The net investment in a lease is measured at (a) the present value of the sum of the lease payments receivable by a lessor and any unguaranteed residual value accrued to the lessor plus (b) initial direct costs and is presented as a finance lease receivable. Finance lease income is allocated to the relevant accounting periods so as to reflect a constant, periodic rate of return on the Group’s net investment outstanding in respect of leases.

Lease payments less any lease incentives payable from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

b) The Group as lessee

The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments, in-substance fixed payments, variable lease payments which depend on an index or a rate, residual value guarantees, the exercise price of a purchase option if the Group is reasonably certain to exercise that option, and payments of penalties for terminating a lease if the lease term reflects such termination, less any lease incentives receivable. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses the lessee’s incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term, a change in the amounts expected to be payable under a residual value guarantee, a change in the assessment of an option to purchase an underlying asset, or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in the periods in which they are incurred.

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r. Government grants

Government grants are not recognized until there is reasonable assurance that the Group will comply with the conditions attached to them and that the grants will be received.

Government grants are recognized in profit or loss on a systematic basis over the periods in which the Group recognizes as expenses the related costs that the grants intend to compensate.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognized in profit or loss in the period in which they are received.

The benefit of a government loan received at a below-market rate of interest is treated as a government grant measured as the difference between the proceeds received and the fair value of the loan based on prevailing market interest rates.

s. Employee benefits
1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related service.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost) and net interest on the net defined benefit liability (asset) are recognized as employee benefits expense in the period they occur. Remeasurement, comprising actuarial gains and losses, and the return on plan assets (excluding interest), are recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liability (asset) represents the actual deficit (surplus) in the Group’s defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

t. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

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According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for as income tax in the year the shareholders approve to retain earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all (deductible temporary differences and unused loss carry forward) to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, management is required to make judgments, estimates and assumptions on the carrying amounts of assets and liabilities that are not readily apparent from other sources. The accounts include allowance for doubtful trade receivable accounts, inventory valuation losses, depreciation, impairment, pension, deferred tax assets, etc. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The Group considers the economic implications of the COVID-19 when making its critical accounting estimates. The estimates and underlying assumptions are audited on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

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6. CASH AND CASH EQUIVALENTS

Cash on hand Checking accounts and cash in bank Cash equivalents Time deposits Short-term bills		December 31	December 31
		2021 $ 2,926 8,473,267 1,801,526 109,862 $ 10,387,581	2020 $ 3,216 9,723,431 2,108,064 109,697 $ 11,944,408

The market rate intervals of cash in the bank at the end of the year were as follows (except for the checking accounts’ interest rate of 0.00%):

Bank balance Short-term bills	December 31
	2021 2020 0.001%-2.75% 0.001%-3.90% 0.16% 0.18%

As of December 31, 2021 and 2020, certain time deposits were classified and pledged as follows:

Purpose Other financial assets - current Restricted time deposits Negotiable certificate of deposits (not expired) Restricted deposits To meet contract requirements for completing construction To secure short-term borrowings and letters of credit Repatriation of offshore funds and project grants Refundable deposits Other - pledged time deposits To meet contract requirements for completing construction To meet required security deposit Other non-current assets - other To secure long-term borrowings		December 31	December 31
		2021 $ - 18,139 370,054 80,493 468,686 51,667 867 - 52,534 $ 521,220	2020 $ 2,300 14,516 523,952 85,160 625,928 51,528 878 8,730 61,136 $ 687,064

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets mandatorily classified as at FVTPL Derivative financial assets (not under hedge accounting) Commodity futures contracts Foreign exchange forward contracts Options Hybrid financial assets Corporate bonds Financial assets at FVTPL		December 31	December 31
		2021 $ 1,940 14,207 - - $ 16,147	2020 $ 73,329 - - 5,683,859 $ 5,757,188 (Continued)

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Current Non-current Financial liabilities held for trading Derivative financial liabilities (not under hedge accounting) Foreign exchange forward contracts Exchange rate swap contracts Financial liabilities at FVTPL Current Non-current		December 31	December 31
		2021 $ 16,147 - $ 16,147 $ - 37,439 $ 37,439 $ 37,439 - $ 37,439	2020 $ 73,329 5,683,859 $ 5,757,188 $ 8,374 - $ 8,374 $ 8,374 - $ 8,374 (Concluded)

a. As of December 31, 2021 and 2020, outstanding commodity futures not under hedge accounting were as follows:

									Valuation	Valuation
	Type of	Quantity		Expiration	Exercise Price		Market Price		(Loss)	Gain
	Transaction	(Tons)	Trade Date	Date	(In Thousands)		(In Thousands)		(In Thousands)
December 31, 2021
Commodity futures
contracts
Copper	Buy	9,925	2021.09.01-	2022.01.19-	US$	94,424	US$	96,834	US$	2,410
			2021.12.31	2022.04.20
Copper	Sell	3,050	2021.12.10-	2022.01.19-	US$	29,229	US$	29,846	US$	(617 )
			2021.12.31	2022.03.31
Nickel	Sell	2,238	2021.11.04-	2022.02.04-	US$	44,698	US$	46,459	US$	(1,761 )
			2021.12.31	2022.03.31
Copper	Buy	1,770	2021.09.07-	2022.01.31-	RMB	124,483	RMB	124,618	RMB	135
			2021.12.31	2022.06.30
Zinc	Buy	275	2021.10.14-	2022.03.31	RMB	6,520	RMB	6,630	RMB	110
			2021.12.10
December 31, 2020
Commodity futures
contracts
Copper	Buy	10,250	2020.04.30-	2021.01.20-	US$	76,919	US$	79,276	US$	2,357
			2020.12.31	2021.10.20
Nickel	Sell	882	2020.10.15-	2021.01.15-	US$	14,560	US$	14,597	US$	(37 )
			2020.12.17	2021.03.17
Copper	Buy	1,125	2020.10.12-	2021.01.31-	RMB	63,272	RMB	65,034	RMB	1,762
			2020.12.30	2021.07.31
Zinc	Buy	155	2020.12.09-	2021.01.31-	RMB	3,318	RMB	3,233	RMB	(85 )
			2020.12.30	2021.02.28
Stainless steel	Buy	3,000	2020.12.31	2021.03.31	RMB	40,121	RMB	40,110	RMB	(11 )

36 -
b. At the end of the year, outstanding foreign exchange forward contracts not under hedge accounting were as follows:

Notional Amount Currency Maturity Date (In Thousands) December 31, 2021 Sell EUR to USD 2022.01.08-2022.02.17 EUR18,000/USD20,326 USD to NTD 2022.01.07-2022.02.10 USD100,000/NTD2,776,800 USD to RMB 2022.01.13-2022.07.20 USD83,643/RMB536,528 EUR to MYR 2022.01.14-2022.03.02 EUR1,160/MYR5,590 Buy USD to NTD 2022.01.06-2022.02.21 USD129,363/NTD3,579,887 USD to JPY 2022.01.12-2022.01.24 USD9,430/JPY1,077,970 EUR to USD 2022.01.10 EUR25,405/USD28,694 USD to SGD 2022.01.12 USD20,207/SGD27,651 USD to RMB 2022.01.13 USD10,000/RMB63,611 December 31, 2020 Sell EUR to MYR 2021.01.15-2021.06.28 EUR887/MYR4,378 USD to MYR 2021.01.29 USD300/MYR1,210 EUR to USD 2021.04.08 EUR8,180/USD10,065 USD to NTD 2021.04.08 USD10,000/NTD280,870 USD to RMB 2021.01.04-2021.01.28 USD115,000/RMB752,822 Buy USD to NTD 2021.01.05 USD60,000/NTD1,699,190 USD to JPY 2021.01.28 USD5,343/JPY553,220 USD to SGD 2021.01.19 USD38,781/SGD51,851

c. As of December 31, 2021, outstanding exchange rate swap contracts not under hedge accounting were as follows:

					Notional Amount
			Currency	Maturity Date	(In Thousands)
December	31,	2021	USD to NTD	2022.01.12	USD75,000/NTD2,097,188
			USD to NTD	2022.01.12	USD70,000/NTD1,957,375
			USD to NTD	2022.01.14	USD40,000/NTD1,109,600

d. For the years ended December 31, 2021 and 2020, the Group’s strategy for commodity futures contracts, foreign exchange forward contracts and exchange rate swap contracts was to hedge exposures to fluctuations of essential materials’ prices and foreign exchange rates. However, those derivative financial instruments did not meet the criteria of hedge effectiveness; therefore, they were not accounted for by hedge accounting.
e. In January 2020, the Group bought 2-year corporate bonds of Golden Harbour International Pte. Ltd. in the amount of US$178,500 thousand. The bonds are embedded derivative instruments that pay a fixed interest rate of 5% plus a floating spread per annum. Due to the cash flow demand, the Group communicated with Golden Harbour International Pte. Ltd. on August 27, 2021 to exercise the early redemption to pay back the bonds. Refer to Note 15.
f. In January 2020, the Group bought an option contract for US$50 thousand. Under the contract, the issuer of the option will make an unconditional payment to the Group for the principal and interest of the abovementioned bonds if Golden Harbour International Pte. Ltd fails to redeem the bonds at maturity.
37 -

8. DERIVATIVE FINANCIAL INSTRUMENTS FOR HEDGING

Financial assets-current Fair value hedges - exchange rate swap contracts		December	31
		2021 $ 89,232	2020 $ 8,282

The Group used exchange rate swap contracts to minimize its exposure to changes in the exchange rate of its foreign-currency trade receivable and trade payable. The exchange rate swaps and the corresponding financial assets have the same terms, and management believes that the exchange rate swaps are highly effective hedging instruments. The outstanding exchange rate swap contracts of the Group at the end of the year were as follows:

					Notional Amount
			Currency	Maturity Date	(In Thousands)
December	31,	2021
Exchange	rate	swap contracts	USD to RMB	2022.01.14	USD75,000/RMB488,325
			USD to RMB	2022.01.14	USD70,000/RMB455,700
			USD to RMB	2022.06.08	USD20,000/RMB129,220
			USD to RMB	2022.06.08	USD15,000/RMB96,921
December	31,	2020
Exchange	rate	swap contracts	USD to NTD	2021.01.13	USD21,000/NTD607,457
			USD to NTD	2021.01.13	USD21,000/NTD607,467
			USD to NTD	2021.01.13	USD30,000/NTD867,795
			USD to NTD	2021.01.13	USD30,000/NTD867,810
			USD to NTD	2021.01.13	USD30,000/NTD867,810
			USD to NTD	2021.01.13	USD30,000/NTD867,810
			USD to NTD	2021.01.13	USD27,000/NTD781,029
			USD to NTD	2021.01.13	USD11,000/NTD318,197
			USD to RMB	2021.01.15	USD21,000/RMB141,259
			USD to RMB	2021.01.15	USD21,000/RMB141,246
			USD to RMB	2021.01.15	USD80,000/RMB538,128
			USD to RMB	2021.01.15	USD40,000/RMB269,040
			USD to RMB	2021.01.15	USD27,000/RMB181,607

Gain on the hedging instruments Loss on the hedged items	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 89,232 $ 52,963	2020 $ 8,282 $ 42,075

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9. FINANCIAL ASSETS AT AMORTIZED COST

Current Foreign investments Interest rate-linked structured investment deposits		December 31	December 31
		2021 $ -	2020 $ 1,315,970

The interest rates for interest rate-linked structured investment deposits was 3.2% as of December 31, 2020.

10. CONTRACT ASSETS

As of December 31, 2021 and 2020, contract balances were as follows:

Contract assets Cable installation Solar power systems installation Less: Allowance for impairment loss Contract assets - current		December 31	December 31
		2021 $ 840,341 4,910,003 - $ 5,750,344	2020 $ 781,196 3,679,796 - $ 4,460,992

The changes in the balance of contract assets primarily result from the timing difference between the Group’s satisfaction of performance obligations and the respective customer’s payment.

11. NOTES RECEIVABLE AND TRADE RECEIVABLES

Notes receivable Notes receivable Trade receivables Trade receivables Less: Allowance for impairment loss		December 31	December 31
		2021 $ 2,627,411 $ 11,138,592 (92,903) $ 11,045,689	2020 $ 2,974,132 $ 7,637,153 (94,022) $ 7,543,131

The average credit period on the sale of goods was 60 days. In determining the collectability of a trade receivable, the Group considered any change in the credit quality of the trade receivable since the date credit was initially granted to the end of the reporting period. The Group adopted a policy of only dealing with entities that are rated the equivalent of investment grade or higher and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group uses other publicly available financial information or its own trading records to rate its major customers. The Group’s exposure and the credit ratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded is spread amongst approved counterparties. Credit exposure is controlled by

39 -

counterparty limits that are reviewed and approved by the risk management committee annually. In this regard, the management believes the Group’s credit risk is significantly reduced.

The Group applies the simplified approach prescribed by IFRS 9 to measure the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix by reference to the past default experience with the respective debtors and an analysis of the debtors’ current financial positions. As the Group’s historical credit loss experience does not show significantly different loss patterns for different customer segments, the loss allowance based on the past due status of receivables is not further distinguished according to different segments of the Group’s customer base.

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

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

December 31, 2021

Expected credit loss rate Gross carrying amount Loss allowance (lifetime ECLs) Amortized cost	Not Past Due 0% $ 9,374,469 - $ 9,374,469	Less than 90 Days 91 to 180 Days 181 to 365 Days More than 365 Days 0%-2% 0%-50% 0%-100% 50%-100% $ 1,373,270 $ 224,201 $ 74,105 $ 92,547 (2,081) (12,786) (10,688) (67,348) $ 1,371,189 $ 211,415 $ 63,417 $ 25,199	Total $ 11,138,592 (92,903) $ 11,045,689

December 31, 2020

Expected credit loss rate Gross carrying amount Loss allowance (lifetime ECLs) Amortized cost	Not Past Due 0% $ 4,721,878 - $ 4,721,878	Less than 90 Days 91 to 180 Days 181 to 365 Days More than 365 Days 0%-2% 0%-50% 0%-100% 50%-100% $ 2,367,951 $ 276,842 $ 153,113 $ 117,369 (1,937) (8,503) (13,451) (70,131) $ 2,366,014 $ 268,339 $ 139,662 $ 47,238	Total $ 7,637,153 (94,022) $ 7,543,131

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

Balance at January 1 Add: Amount recovered (Less) add: Net remeasurement of loss allowance Less: Amounts written off Foreign exchange gains and losses Balance at December 31	For the Year Ended	For the Year Ended	December 31
		2021 $ 94,022 8,764 (7,900) (508) (1,475) $ 92,903	2020 $ 68,967 26,688 12,209 (13,135) (707) $ 94,022

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12. FINANCE LEASE RECEIVABLES

Undiscounted lease payments Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 onwards Less: Unearned finance income Net investment in leases presented as finance lease receivables Current Non-current		December 31	December 31
		2021 $ 81,359 81,359 81,359 81,359 81,359 450,376 857,171 (136,586) $ 720,585 $ 58,042 662,543 $ 720,585	2020 $ 81,359 81,359 81,359 81,359 81,359 531,735 938,530 (161,817) $ 776,713 $ 56,128 720,585 $ 776,713

The power supply contracts of solar power equipment are recognized in accordance with the accounting policies of finance leases. The average term of finance leases entered into was 20 years.

The interest rate inherent in the leases was fixed at the contract date for the entire lease term. The average effective interest rate contracted was approximately 3.30% per annum as of December 31, 2021 and 2020.

The finance lease receivables as of December 31, 2021 and 2020 were neither past due nor impaired.

The amounts of finance lease receivables and lease receivables pledged as collateral for bank borrowings are set out in Note 32.

13. INVENTORIES

Manufacturing and trading industries Raw materials Raw materials in transit Supplies Work-in-process Finished goods and merchandise Contracts in progress Real estate development industry Undeveloped land Buildings and land held for sale Contracts in progress		December 31	December 31
		2021 $ 6,753,215 2,609,416 1,780,788 3,726,215 9,435,648 229,425 24,534,707 3,434 211,858 6,909,724 7,125,016 $ 31,659,723	2020 $ 3,804,593 1,426,333 1,420,645 2,495,808 5,493,205 317,612 14,958,196 3,434 218,402 5,900,503 6,122,339 $ 21,080,535

41 -
a. The cost of inventories recognized as cost of goods sold for the years ended December 31, 2021 and 2020 was NT$135,868,487 thousand and NT$99,095,630 thousand, respectively.
b. The cost of goods sold for the years ended December 31, 2021 and 2020 included reversals of inventory write-downs of NT$38,114 thousand and NT$323,333 thousand, respectively. The reversals of previous write-downs for the years ended December 31, 2021 and 2020 resulted from the inventory closeout.
c. The purchase of inventory for the real estate development industry is primarily for the land, construction costs of future construction and construction projects which are still under development of Walsin (Nanjing) Construction Co., Ltd.
d. Walsin (Nanjing) Construction Co., Ltd. entered into an agreement with third parties for the sale of real estate as of December 31, 2021 and 2020; the selling prices for the related residential buildings and office buildings were RMB2,400 thousand and RMB1,346,175 thousand, respectively. The sales of the real estate in the amounts of NT$9,918 thousand and NT$5,495,319 thousand were recorded as operating revenue for the years ended December 31, 2021 and 2020, respectively.

14. FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Domestic listed ordinary shares HannStar Display Corp. HannStar Board Corp. TECO Electric & Machinery Corp. Global PMX Co., Ltd. Domestic unlisted ordinary shares Foreign unlisted ordinary shares Current Non-current		December 31	December 31
		2021 $ 5,423,342 2,894,429 7,293,386 15,928 560,757 102,745 $ 16,290,587 $ - 16,290,587 $ 16,290,587	2020 $ 3,685,476 2,763,734 26,378 - 339,955 95,101 $ 6,910,644 $ - 6,910,644 $ 6,910,644

These investments in equity instruments are held for medium- to long-term strategic purposes. Accordingly, the management selected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes. In the December 31, 2021 and 2020, the unrealized valuation gains resulting from these investments in equity instruments were NT$2,594,208 thousand and NT$1,077,834 thousand, respectively, recognized in other comprehensive income (loss).

On January 6, 2021, the Group issued 205,333 thousand shares in exchange for 171,104 thousand shares of TECO Electric & Machinery Co., Ltd. WLC and TECO agreed to build a strategic alliance to enhance competitiveness and cooperation in next generation smart grid, smart manufacturing, and green energy industry. In addition, the Group also acquired the shares of TECO Electric & Machinery Co., Ltd. from the open market. As of December 31, 2021 and December 31, 2020, the Group held a total of 230,439 thousand and 954 thousand shares, respectively, of TECO Electric & Machinery Co., Ltd.

42 -

15. SUBSIDIARIES

a. Subsidiaries included in consolidated financial statements

The consolidated entities as of December 31, 2021 and 2020 were as follows:

Investor Investee Main Business Walsin Lihwa Corporation Walsin Lihwa Holdings Limited (WLHL) Investment holding Concord Industries Limited (CIL) Investment holding Ace Result Global Limited Investment holding Energy Pilot Limited (Energy Pilot) Investment holding Market Pilot Limited (Market Pilot) Investment holding Min Maw Precision Industry Corp. (Min Maw) Solar power systems management, design, and installation Walsin Info-Electric Corp. (Walsin Info-Electric) Mechanical and electrical, communications, and power systems Jin-Cherng Construction Co. (Jin-Cherng) Investment in the construction of residential and commercial buildings sold, rented design and interior decoration business contractors Joint Success Enterprises Limited Investments P.T. Walsin Lippo Industries (P.T. Walsin) Manufacture and sale of cables and wires PT. Walsin Lippo Kabel Cables and wires Waltuo Green Resources Corp. Waste disposal, resource recovery and cement products PT. Walsin Nickel Industrial Indonesia Manufacture and sale of nickel pig iron Walsin Precision Technology Sdn. Bhd. Manufacture and sale of stainless steel New Hono Investment Pte. Ltd. Investment holding New Hono Investment Pte. Ltd. PT. Walsin Nickel Industrial Indonesia Manufacture and sale of nickel pig iron WLHL Walsin (China) Investment Co., Ltd. Investment holding Jiangyin Walsin Steel Cable Co., Ltd. (JHS) Manufacture and sale of steel cables and wires Shanghai Walsin Lihwa Power Wire & Cable Co., Ltd. Manufacture and sale of cables and wires Dongguan Walsin Wire & Cable Co., Ltd. Manufacture and sale of bare copper cables and wires Renowned International Limited Investments Walsin International Investments Limited Investments Borrego Solar System, Inc. Solar power system Nanjing Taiwan Trade Mart Management Co., Ltd. Business and assets management, consulting and advertising services Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Manufacture and sale of cold-rolled stainless steel and flat-rolled products CIL Walsin Specialty Steel Corp. Sale of specialty steel products and investment Changshu Walsin Specialty Steel Co., Ltd. Manufacture and sale of specialized steel tubes, rods and wires Shanghai Baihe Walsin Lihwa Specialty Steel Co., Ltd. Manufacture and sale of stainless steel Yantai Walsin Stainless Steel Co., Ltd. Production and sale of new-type alloy materials Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Manufacture and sale of cold-rolled stainless steel and flat-rolled products Walsin Precision Technology Sdn. Bhd. Manufacture and sale of stainless steel	% of Ownership
	December 31
	2021 2020 100.00 100.00 100.00 100.00 100.00 100.00 - (Note 2) - (Note 2) - (Note 5) - (Note 5) 100.00 100.00 99.51 99.51 99.22 99.22 49.05 49.05 70.00 70.00 70.00 70.00 100.00 100.00 50.00 (Note 1) 50.00 (Note 1) 100.00 (Note 8) - 100.00 (Note 1) - 42.00 (Note 1) - (Note 1) 100.00 100.00 100.00 100.00 95.71 95.71 100.00 100.00 - (Note 3) - (Note 3) 100.00 100.00 73.49 73.66 100.00 100.00 18.37 18.37 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 81.63 81.63 - (Note 8) 100.00 (Continued)

Investor
Investee
Main Business
Walsin Lihwa
Corporation
Walsin Lihwa Holdings Limited
(WLHL)
Investment holding
Concord Industries Limited (CIL)
Investment holding
Ace Result Global Limited
Investment holding
Energy Pilot Limited (Energy Pilot) Investment holding
Market Pilot Limited (Market Pilot) Investment holding
Min Maw Precision Industry Corp.
(Min Maw)
Solar power systems management,
design, and installation
Walsin Info-Electric Corp. (Walsin
Info-Electric)
Mechanical and electrical,
communications, and power systems
Jin-Cherng Construction Co.
(Jin-Cherng)
Investment in the construction of
residential and commercial buildings
sold, rented design and interior
decoration business contractors
Joint Success Enterprises Limited
Investments
P.T. Walsin Lippo Industries (P.T.
Walsin)
Manufacture and sale of cables and wires
PT. Walsin Lippo Kabel
Cables and wires
Waltuo Green Resources Corp.
Waste disposal, resource recovery and
cement products
PT. Walsin Nickel Industrial
Indonesia
Manufacture and sale of nickel pig iron
Walsin Precision Technology Sdn.
Bhd.
Manufacture and sale of stainless steel
New Hono Investment Pte. Ltd.
Investment holding
New Hono
Investment Pte.
Ltd.
PT. Walsin Nickel Industrial
Indonesia
Manufacture and sale of nickel pig iron
WLHL
Walsin (China) Investment Co., Ltd. Investment holding
Jiangyin Walsin Steel Cable Co., Ltd.
(JHS)
Manufacture and sale of steel cables and
wires
Shanghai Walsin Lihwa Power Wire
& Cable Co., Ltd.
Manufacture and sale of cables and wires
Dongguan Walsin Wire & Cable Co.,
Ltd.
Manufacture and sale of bare copper
cables and wires
Renowned International Limited
Investments
Walsin International Investments
Limited
Investments
Borrego Solar System, Inc.
Solar power system
Nanjing Taiwan Trade Mart
Management Co., Ltd.
Business and assets management,
consulting and advertising services
Jiangyin Walsin Specialty Alloy
Materials Co., Ltd.
Manufacture and sale of cold-rolled
stainless steel and flat-rolled products
CIL
Walsin Specialty Steel Corp.
Sale of specialty steel products and
investment
Changshu Walsin Specialty Steel Co.,
Ltd.
Manufacture and sale of specialized steel
tubes, rods and wires
Shanghai Baihe Walsin Lihwa
Specialty Steel Co., Ltd.
Manufacture and sale of stainless steel
Yantai Walsin Stainless Steel Co.,
Ltd.
Production and sale of new-type alloy
materials
Jiangyin Walsin Specialty Alloy
Materials Co., Ltd.
Manufacture and sale of cold-rolled
stainless steel and flat-rolled products
Walsin Precision Technology Sdn.
Bhd.
Manufacture and sale of stainless steel

% of Ownership

December 31

2021
2020
100.00
100.00
100.00
100.00
100.00
100.00
-
(Note 2)
-
(Note 2)
-
(Note 5)
-
(Note 5)
100.00
100.00
99.51
99.51
99.22
99.22
49.05
49.05
70.00
70.00
70.00
70.00
100.00
100.00
50.00
(Note 1)
50.00
(Note 1)
100.00
(Note 8)
-
100.00
(Note 1)
-
42.00
(Note 1)
-
(Note 1)
100.00
100.00
100.00
100.00
95.71
95.71
100.00
100.00
-
(Note 3)
-
(Note 3)
100.00
100.00
73.49
73.66
100.00
100.00
18.37
18.37
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
81.63
81.63
-
(Note 8)
100.00
(Continued)

43 -

Investor Investee Main Business XiAn Walsin Metal Product Co., Ltd. Production and sale of medium and heavy specialty steel plates Walsin Lihwa (Changzhou) Investment Co., Ltd. Commerce and investments Jin-Cherng Joint Success Enterprises Limited Investments Walsin (Nanjing) Construction Limited Construction, rental and sale of buildings and industrial factories Nanjing Walsin Property Management Co., Ltd. Property management, business management and housing leasing Walsin Nanjing Culture and Arts Co., Ltd. Organize culture and arts communication activity, cultural performance, culture and arts forwarding agency Walsin Nanjing Commercial Management Co., Ltd. Business management, food marketing, catering services and sale of groceries Market Pilot Limited XiAn Walsin United Technology Co., Ltd. Electronic devices and module	% of Ownership
	December 31
	2021 2020 100.00 100.00 - (Note 6) - (Note 6) 50.95 50.95 100.00 100.00 100.00 100.00 - (Note 9) 100.00 - (Note 4) - (Note 4) - (Note 7) - (Note 7) (Concluded)

Investor
Investee
Main Business
XiAn Walsin Metal Product Co., Ltd. Production and sale of medium and
heavy specialty steel plates
Walsin Lihwa (Changzhou)
Investment Co., Ltd.
Commerce and investments
Jin-Cherng
Joint Success Enterprises Limited
Investments
Walsin (Nanjing) Construction
Limited
Construction, rental and sale of buildings
and industrial factories
Nanjing Walsin Property Management
Co., Ltd.
Property management, business
management and housing leasing
Walsin Nanjing Culture and Arts Co.,
Ltd.
Organize culture and arts communication
activity, cultural performance, culture
and arts forwarding agency
Walsin Nanjing Commercial
Management Co., Ltd.
Business management, food marketing,
catering services and sale of groceries
Market Pilot Limited XiAn Walsin United Technology Co.,
Ltd.
Electronic devices and module

% of Ownership

December 31

2021
2020
100.00
100.00
-
(Note 6)
-
(Note 6)
50.95
50.95
100.00
100.00
100.00
100.00
-
(Note 9)
100.00
-
(Note 4)
-
(Note 4)
-
(Note 7)
-
(Note 7)
(Concluded)

Note 1: In January 2020, the Group invested capital to establish PT. Walsin Nickel Industrial Indonesia (“WNII”). New Hono Investment Pte. Ltd (“NHI”) held 42% equity of WNII. According to the joint venture agreement signed by the Group and NHI in January 2020, the Group had the right to purchase 100% of NHI’s shares on the terms agreed by all parties to acquire 42% equity of WNII indirectly. On June 25, 2021, the board of directors of the Company resolved to acquire 100% of NHI’s shares and the Group acquired 100% of NHI’s shares at a price US$178,500 thousand on July 30, 2021. After the transaction, the Group directly and indirectly acquired 92% of WNII’s shares. The Investment Commission of the Ministry of Economic Affairs has approved the investment to pay by the Group’s own foreign exchange. Therefore, the Group communicated with Golden Harbour International Pte. Ltd. to exercise the early redemption and to pay back the US-currency bonds. The Group will pay the purchase of NHI’s shares by the redemption of the bonds. As of December 31, 2021, US$178,500 thousand has been paid.
Note 2: The liquidation of Energy Pilot Limited was completed on September 3, 2020.
Note 3: The liquidation of Renowned International Limited was completed on August 24, 2020.
Note 4: The liquidation of Walsin Nanjing Commercial Management Co., Ltd. was completed on December 7, 2020.
Note 5: The liquidation of Market Pilot Limited was completed on December 9, 2020.
Note 6: The liquidation of Walsin Lihwa (Changzhou) Investment Co., Ltd. was completed on October 19, 2020.
Note 7: The liquidation of XiAn Walsin United Technology Co., Ltd. was completed on December 7, 2020.
Note 8: In order to adjust the investment structure of the Group, it was transferred from CIL to WLC.
Note 9: The liquidation of Walsin Nanjing Culture and Arts Co., Ltd. was completed on December 22, 2021.
44 -

b. The following entities were excluded from consolidation as of December 31, 2021 and 2020:

Investor Investee Main Business WLHL Walcom Chemical Industrial Limited Commerce	% of Ownership December 31 2021 2020 Note 65.00 65.00 Note

Note: The investee has a capital of HK$500 thousand and total assets of HK$1 thousand. As of December 31, 2021 and 2020, the investee had no sales, and its total assets were less than 1% of the Group’s consolidated total assets.

The financial statements of certain subsidiaries included in the consolidated financial statements, namely P.T. Walsin Lippo Industries (P.T. Walsin), Borrego Solar System, Inc. and Walsin Precision Technology Sdn, Bhd. were not audited by the auditor of WLC but by other auditors. As of December 31, 2021 and 2020, the combined total assets of those subsidiaries were NT$10,292,042 thousand and NT$10,148,841 thousand, respectively; for the years ended December 31, 2021 and 2020, the combined net operating revenues of these subsidiaries were NT$17,799,306 thousand and NT$18,427,711 thousand, respectively.

16. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in associates:

Name of Associate Material associates Winbond Electronics Corp. Walton Advanced Engineering, Inc. Walsin Technology Corp. Associates that are not individually material Others		December 31	December 31	December 31
		2021 Carrying Value Ownership Percentage $ 18,357,864 22.21 2,322,664 21.01 8,166,415 18.30 10,604,174 $ 39,451,117		2020
				Carrying Value Ownership Percentage $ 14,595,661 22.21 2,601,028 21.65 7,068,731 18.30 8,501,671 $ 32,767,091

Refer to Table 8 “Information on Investees” and Table 9 “Information on Investments in Mainland China” for the nature of activities, principal place of business and country of incorporation of the associates.

The Group is the single largest shareholder of the abovementioned material associates in which the Group has an ownership percentage of less than 50%. Considering the relative size and wide dispersion of the voting rights owned by other shareholders, the Group has no ability to direct the relevant activities of the associates and therefore has no control over these associates.

45 -

Fair values (Level 1) of investments in associates with available published price quotation are summarized as follows:

Name of Associate Winbond Electronics Corp. Walton Advanced Engineering, Inc. Walsin Technology Corp.		December 31	December 31
		2021 $ 30,050,846 $ 2,066,495 $ 14,846,688	2020 $ 25,675,797 $ 1,512,872 $ 20,491,986

All the associates are accounted for using the equity method.

The Group’s share of profit and other comprehensive income of associates for the years ended December 31, 2021 and 2020 were based on the associates’ financial statements audited by independent auditors for the same period.

a. Material associates

December 31, 2021

Current assets Non-current assets Current liabilities Non-current liabilities Equity Non-controlling interests Proportion of the Group’s ownership Equity attributable to the Group Other adjustments Carrying amount Operating revenue Net profit for the year Other comprehensive income (loss) Total comprehensive income for the year	Winbond Electronics Corp. $ 72,506,733 80,233,551 (28,644,931) (34,061,841) 90,033,512 (7,589,399) $ 82,444,113 22.21% $ 18,310,837 47,027 $ 18,357,864 $ 99,569,924 $ 15,000,122 4,186,931 $ 19,187,053	Walton Advanced Engineering, Inc. $ 8,361,878 13,155,507 (5,019,961) (5,259,172) 11,238,252 (297,416) $ 10,940,836 21.01% $ 2,298,670 23,994 $ 2,322,664 $ 8,118,256 $ 118,732 (892,554) $ (773,822)	Walsin Technology Corp. $ 41,187,886 52,910,618 (21,557,433) (19,062,857) 53,478,214 (9,089,372) $ 44,388,842 18.30% $ 8,123,158 43,257 $ 8,166,415 $ 42,108,708 $ 8,961,076 1,157,156 $ 10,118,232

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December 31, 2020

Current assets Non-current assets Current liabilities Non-current liabilities Equity Non-controlling interests Proportion of the Group’s ownership Equity attributable to the Group Other adjustments Carrying amount Operating revenue Net profit for the year Other comprehensive income (loss) Total comprehensive income for the year b. Associates that are not individually material The Group’s share of: Gain (loss) from continuing operations Other comprehensive income Total comprehensive income for the year	Winbond Electronics Corp. $ 47,530,801 78,512,439 (25,475,006) (29,975,547) 70,592,687 (5,143,568) $ 65,449,119 22.21% $ 14,536,249 59,412 $ 14,595,661 $ 60,683,171 $ 1,519,043 3,291,251 $ 4,810,294	Walton Advanced Engineering, Inc. Walsin Technology Corp. $ 6,497,236 $ 39,636,422 11,013,279 42,416,526 (3,189,422) (19,714,368) (2,436,908) (16,684,386) 11,884,185 45,654,194 - (7,033,732) $ 11,884,185 $ 38,620,462 21.65% 18.30% $ 2,572,926 $ 7,067,545 28,102 1,186 $ 2,601,028 $ 7,068,731 $ 5,399,201 $ 35,599,197 $ 254,887 $ 7,217,645 (49,194) 657,013 $ 205,693 $ 7,874,658 For the Year Ended December 31	Walton Advanced Engineering, Inc. Walsin Technology Corp. $ 6,497,236 $ 39,636,422 11,013,279 42,416,526 (3,189,422) (19,714,368) (2,436,908) (16,684,386) 11,884,185 45,654,194 - (7,033,732) $ 11,884,185 $ 38,620,462 21.65% 18.30% $ 2,572,926 $ 7,067,545 28,102 1,186 $ 2,601,028 $ 7,068,731 $ 5,399,201 $ 35,599,197 $ 254,887 $ 7,217,645 (49,194) 657,013 $ 205,693 $ 7,874,658 For the Year Ended December 31	Walton Advanced Engineering, Inc. Walsin Technology Corp. $ 6,497,236 $ 39,636,422 11,013,279 42,416,526 (3,189,422) (19,714,368) (2,436,908) (16,684,386) 11,884,185 45,654,194 - (7,033,732) $ 11,884,185 $ 38,620,462 21.65% 18.30% $ 2,572,926 $ 7,067,545 28,102 1,186 $ 2,601,028 $ 7,068,731 $ 5,399,201 $ 35,599,197 $ 254,887 $ 7,217,645 (49,194) 657,013 $ 205,693 $ 7,874,658 For the Year Ended December 31
			2021 $ 327,147 1,839,778 $ 2,166,925	2020 $ 119,854 1,809,645 $ 1,929,499

The Group’s share of profit and other comprehensive income of the associates for the year ended December 31, 2021 and 2020 was based on the associates’ financial statements audited by independent auditors for the same period. For the year ended December 31, 2021, Walsin Color Co., Ltd. was not audited by the auditor of WLC but by other auditors. As of December 31, 2021, the carrying amount of investments accounted for using the equity method was NT$1,053,790 thousand; for the year ended December 31, 2021, the amounts of the share of loss were NT$5,936 thousand, respectively.

17. PROPERTY, PLANT AND EQUIPMENT

Assets used by the Group		December 31	December 31
		2021 $ 41,474,488	2020 $ 34,294,221

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Cost Balance at January 1, 2021 Additions Disposals Reclassified Reclassified as inventories Effect of foreign currency exchange differences Balance at December 31, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Disposals Impairment losses recognized (reversed) Depreciation expenses Reclassified Effect of foreign currency exchange differences Balance at December 31, 2021 Carrying amount at December 31, 2021 Cost Balance at January 1, 2020 Additions Disposals Reclassified Reclassified as inventories Effect of foreign currency exchange differences Balance at December 31, 2020 Accumulated depreciation and impairment Balance at January 1, 2020 Disposals Impairment losses recognized (reversed) Depreciation expenses Reclassified Reclassified as inventories Effect of foreign currency exchange differences Balance at December 31, 2020 Carrying amount at December 31, 2020	Land Buildings and Improvements Machinery and Equipment $ 3,483,995 $ 16,545,654 $ 25,806,284 78,421 90,205 1,600,733 (1,164 ) (41,482 ) (323,350 ) 49,773 1,463,134 8,021,006 - 682,342 - - (68,579) (135,618) $ 3,611,025 $ 18,671,274 $ 34,969,055 $ 8,067 $ 6,265,972 $ 15,948,131 - (37,511 ) (305,754 ) - 71,468 630,232 - 760,482 1,288,451 - 55,108 4,583 - (12,753) (37,899) $ 8,067 $ 7,102,766 $ 17,527,744 $ 3,602,958 $ 11,568,508 $ 17,441,311 $ 3,453,378 $ 16,144,426 $ 25,268,998 30,617 71,752 250,651 - (6,290 ) (252,518 ) - 206,871 501,545 - (20,674 ) - - 149,569 37,608 $ 3,483,995 $ 16,545,654 $ 25,806,284 $ 8,067 $ 5,531,108 $ 15,120,400 - (5,723 ) (243,278 ) - - - - 696,929 1,021,262 - - (976 ) - - - - 43,658 50,723 $ 8,067 $ 6,265,972 $ 15,948,131 $ 3,475,928 $ 10,279,682 $ 9,858,153	Other Equipment Construction in Progress $ 7,133,130 $ 8,576,988 648,730 7,592,258 (178,162 ) (60 ) 209,169 (9,743,082 ) - - (29,229) (120,729) $ 7,783,638 $ 6,305,375 $ 5,029,660 $ - (171,011 ) - (7,898 ) - 450,632 - (59,691 ) - (14,390) - $ 5,227,302 $ - $ 2,556,336 $ 6,305,375 $ 6,375,790 $ 2,001,693 554,663 7,840,247 (132,739 ) (15,476 ) 292,364 (1,000,780 ) (2,782 ) - 45,834 (248,696) $ 7,133,130 $ 8,576,988 $ 4,739,601 $ - (128,359 ) - (691 ) - 385,930 - 976 - (2,086 ) - 34,289 - $ 5,029,660 $ - $ 2,103,470 $ 8,576,988	Total $ 61,546,051 10,010,347 (544,218 ) - 682,342 (354,155) $ 71,340,367 $ 27,251,830 (514,276 ) 693,802 2,499,565 - (65,042) $ 29,865,879 $ 41,474,488 $ 53,244,285 8,747,930 (407,023 ) - (23,456 ) (15,685) $ 61,546,051 $ 25,399,176 (377,360 ) (691 ) 2,104,121 - (2,086 ) 128,670 $ 27,251,830 $ 34,294,221

The property, plant, and machinery equipment of PT. Walsin Nickel Industrial Indonesia which is the subsidiary of the Group is depreciated on an accelerated basis over their estimated useful lives for 16 years.

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

Buildings and improvements 3-50 years Machinery and equipment 3-20 years Other equipment 3-15 years

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The Group’s main buildings and electrical and mechanical power equipment are depreciated over their estimated useful lives of 20-50 years and 18-20 years, respectively.

WLC owns parcels of land which were registered in the name of certain individuals because of certain regulatory restrictions. To secure its ownership of such parcels of land, WLC keeps in its possession the land titles with the annotation of the land being pledged to WLC. As of December 31, 2021 and 2020, the recorded total carrying amount of such parcels of land amounted to NT$491,917 thousand.

After appropriate evaluation, the Group recognized an impairment loss on property, plant and equipment of NT$693,801 thousand for the year ended December 31, 2021.

18. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amount Land Buildings Transportation equipment Additions to right-of-use assets Disposal Depreciation charge for right-of-use assets Land Buildings Transportation equipment		December 31	December 31	December 31
	2021 2020 $ 1,643,343 $ 1,480,251 124,948 156,056 35,219 28,099 $ 1,803,510 $ 1,664,406 For the Year Ended December 31
			2021 $ 291,861 $ (7,762) $ 57,774 57,569 16,964 $ 132,307	2020 $ 424,199 $ (1,245) $ 53,383 62,564 15,469 $ 131,416

b. Lease liabilities

Carrying amount Current Non-current		December 31	December 31
		2021 $ 71,470 $ 243,676	2020 $ 75,261 $ 274,442

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Range of discount rates for lease liabilities was as follows:

Land Buildings Transportation equipment Other lease information Expenses relating to short-term leases Expenses relating to low-value asset leases Expenses relating to variable lease payments not included in the measurement of lease liabilities Total cash outflow for leases	December 31	December 31	December 31
	2021 2020 0.83%-6.123% 0.83%-6.123% 1.409%-8% 1.409%-8% 3.038%-5.75% 3.038%-5.75% For the Year Ended December 31
		2021 $ 45,453 $ 722 $ 8,688 $ (144,657)	2020 $ 77,768 $ 663 $ 8,683 $ (170,946)

c. Other lease information

19. INVESTMENT PROPERTIES

Completed investment properties Cost Balance at January 1, 2021 Additions Reclassified from inventories Effects of foreign currency exchange differences Balance at December 31, 2021 Balance at January 1, 2020 Additions Transferred to inventories Effects of foreign currency exchange differences Balance at December 31, 2020		December 31	December 31
		2021 $ 10,431,063	2020 $ 9,874,926 Completed Investment Properties $ 12,271,365 2,362 725,571 (7,944) $ 12,991,354 $ 12,248,696 547 (2,188) 24,310 $ 12,271,365 (Continued)

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Accumulated depreciation and impairment Balance at January 1, 2021 Depreciation expense Effect of foreign currency exchange differences Balance at December 31, 2021 Balance at January 1, 2020 Depreciation expense Effect of foreign currency exchange differences Balance at December 31, 2020	Completed Investment Properties $ 2,396,439 167,443 (3,591) $ 2,560,291 $ 2,215,707 169,976 10,756 $ 2,396,439 (Concluded)

The completed investment properties are depreciated under the straight-line method over their estimated useful lives of 20 to 50 years.

The main investment properties of the Group are Walsin Xin Yi Building and the completed investment properties of Walsin (Nanjing) Construction Co., Ltd. The building’s valuation was commissioned by independent appraisal agencies (third parties). As of December 31, 2021 and 2020, the fair values of completed investment properties’ were NT$35,173,881 thousand and NT$33,971,481 thousand, respectively.

20. BORROWINGS

Short-term borrowings Current portion of long-term borrowings Long-term borrowings		December 31	December 31
		2021 $ 7,108,766 $ 10,719,081 $ 24,785,952	2020 $ 6,591,019 $ 6,162,400 $ 31,406,829

a. Short-term borrowings as of December 31, 2021 and 2020 were as follows:

Procurement loans Bank’s lines of credit	December 31	December 31	December 31	December 31
	2021		2020 Interest Rate % Amount 0.70-0.90 $ 5,091,019 0.65 1,500,000 $ 6,591,019
	Interest Rate % 0.64-0.70 0.69-3.50	Amount $ 2,111,447 4,997,319 $ 7,108,766		Amount $ 5,091,019 1,500,000 $ 6,591,019

Refer to Notes 6 and 32 for collateral pledged for short-term borrowings as of December 31, 2021 and 2021.

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b. Long-term borrowings as of December 31, 2021 and 2020 were as follows:

First Commercial Bank Hua Nan Commercial Bank Hua Nan Commercial Bank Chinatrust Commercial Bank Mega International Commercial Bank Co., Ltd. Bank of Taiwan Cathay United Bank Taiwan Cooperative Bank Taipei Fubon Commercial Bank Chang Hwa Commercial Bank KGI Bank Chinatrust Commercial Bank Standard Chartered Bank DBS Bank DBS Bank DBS Bank Standard Chartered Bank Bank of Taiwan The Export-Import Bank of the Republic of China Hua Nan Commercial Bank Taiwan Cooperative Bank Cathay United Bank Cathay United Bank Cathay United Bank	December 31
	2021 Significant Covenant Amount Long-term credit loan; principal repayment at maturity, from December 28, 2018 to December 28, 2021 $ - Long-term credit loan; principal repayment at maturity, from March 5, 2018 to March 5, 2021 - Long-term credit loan; principal repayment at maturity, from December 28, 2018 to December 28, 2021 - Mid-term credit loan; principal repayment at maturity, from March 5, 2018 to March 5, 2021 - Long-term credit loan; principal repayment at maturity, from March 5, 2018 to March 5, 2021 - Long-term credit loan; principal repayment at maturity, from March 4, 2019 to March 4, 2022 3,000,000 Long-term credit loan; principal repayment at maturity, from March 4, 2019 to March 4, 2022 1,500,000 Long-term credit loan; principal repayment at maturity, from March 4, 2019 to March 4, 2022 1,000,000 Long-term credit loan; principal repayment at maturity, from June 3, 2019 to June 3, 2022 1,000,000 Long-term credit loan; principal repayment at maturity, from June 3, 2019 to June 3, 2022 1,000,000 Long-term credit loan; principal repayment at maturity, from June 3, 2019 to June 3, 2022 1,500,000 Long-term credit loan; principal repayment at maturity, from September 3, 2019 to September 3, 2022 1,500,000 Long-term credit loan; principal repayment at maturity, from January 14, 2020 to December 31, 2023 5,352,144 Long-term credit loan; principal repayment at maturity, from March 30, 2020 to March 30, 2023 3,028,500 Long-term credit loan; principal repayment at maturity, from March 31, 2020 to March 31, 2023 3,018,600 Long-term credit loan; principal repayment at maturity, from April 15, 2020 to April 15, 2023 3,010,000 Long-term credit loan; principal repayment at maturity, from September 27, 2020 to December 31, 2023 2,093,000 Long-term credit loan; principal repayments at maturity, from September 22, 2020 to September 22, 2025; principal to be repaid in two phases: From the 5th year, repayments are due once every six months; at rates of 20% and 80%, respectively. 3,000,000 Long-term credit loan from December 4, 2020 to December 4, 2027; principal to be repaid evenly in seven phases; 1st repayment due 48 months after the drawdown date, after which repayments are due once every six months 1,137,770 Long-term credit loan; Principal repayments at maturity, form March 29, 2021 to March 29, 2026; principal to be repaid in two phases: From the 5th year, repayments are due once every six months 2,000,000 Long-term credit loan; Principal repayments at maturity, form June 28, 2021 to June 28, 2026; principal to be repaid in two phases: 1st repayment due 48 months after the drawdown date, 2nd repayment due maturity date. 2,000,000 Long-term secured loan; from December 15, 2011 to December 15, 2021; the grace period for principal is 6 months, after which repayments are due monthly 98,203 Long-term secured loan; from September 27, 2012 to September 27, 2022; the grace period for principal is 6 months, after which repayments are due monthly 104,669 Long-term secured loan; from February 21, 2012 to February 21, 2022; the grace period for principal is 6 months, after which repayments are due monthly 84,805	2020
		Amount $ 1,000,000 1,500,000 1,500,000 1,000,000 1,000,000 3,000,000 1,500,000 1,000,000 1,000,000 1,000,000 1,500,000 1,500,000 5,352,144 3,028,500 3,018,600 3,010,000 2,093,000 3,000,000 1,137,770 - - 117,844 122,844 101,218 (Continued)

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Taipei Fubon Bank Taipei Fubon Bank Taipei Fubon Bank Less: Current portion of long-term borrowings	December 31
	2021	Amount $ 27,500 24,267 25,575 35,505,033 (10,719,081) $ 24,785,952		2020
	Significant Covenant Long-term secured loan; from December 25, 2013 to October 11, 2023; the grace period for principal is 6 months, after which repayments are due monthly Long-term secured loan; from February 14, 2014 to October 11, 2023; the grace period for principal is 6 months, after which repayments are due monthly Long-term secured loan; from October 6, 2014 to October 11, 2023; the grace period for principal is 6 months, after which repayments are due monthly		Amount $ 31,167 27,467 28,675 37,569,229 (6,162,400) $ 31,406,829 (Concluded)

1) Under the loan agreements with DBS Bank, WLC should maintain certain financial ratios during the loan term, which are based on the annual and semi-annual consolidated financial statements audited by the independent auditors. The financial ratios are as follows:
a) Ratio of current assets to current liabilities not less than 100%;
b) Ratio of total liabilities less cash and cash equivalents to tangible net worth not more than 120%;
c) Ratio of net income before interest expenses, taxation, depreciation and amortization to interest expenses not less than 150%; and
d) Tangible net worth (net worth less intangible assets) not less than NT$55,000,000 thousand.
2) As of December 31, 2021 and 2020, the effective interest rate range of the credit borrowings was 0.85%-1.20% and 0.10%-1.50% per annum, respectively. As of December 31, 2021 and 2020, the effective interest rate range of the secured borrowings was 1.66%-2.07% per annum.
3) As of December 31, 2021 and 2020, the Group’s current portion of long-term borrowings were NT$10,719,081 thousand and NT$6,162,400 thousand, respectively, under the loan agreements. The Group’s consolidated financial statements for the years ended December 31, 2021 and 2020 showed that the Group was in compliance with the aforementioned financial ratio requirements.
4) Refer to Note 32 for collaterals pledged on bank borrowings as of December 31, 2021 and 2020.

21. BONDS PAYABLE

The 1st unsecured bonds in 2021		December 31	December 31
		2021 $ 7,500,000	2020 $ -

On October 8, 2021, the Company issued the first unsecured bonds for NT$7.5 billion, each with a face value of NT$10 million. The issuance period is 5 years, and the maturity date is on October 8, 2026. The annual interest rate is 0.7%. From the issuance date, the interest will be paid once a year, and the principal will be repaid once due.

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22. RETIREMENT BENEFIT PLANS

a. Defined contribution plan

WLC and its subsidiaries in the ROC adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, WLC and its subsidiaries in the ROC make monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages.

The total expense recognized in profit or loss for the years ended December 31, 2021 and 2020 was NT$95,977 thousand and NT$89,868 thousand, respectively, which represents contributions payable to these plans by the Group at rates specified in the rules of the plans.

b. Defined benefit plans

The defined benefit plans adopted by WLC and Walsin Info-Electric in accordance with the Labor Standards Act are operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the 6 months before retirement. WLC and Walsin Info-Electric contribute amounts equal to 2% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Group assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Group is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Group has no right to influence the investment policy and strategy.

The amounts included in the consolidated balance sheets in respect of the Group’s defined benefit plans are as follows:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liabilities Present Value of the Defined Benefit Obligation Balance at January 1, 2020 $ 1,462,115 Service cost Current service cost 12,743 Net interest expense (income) 10,917 Recognized in profit or loss 23,660 Remeasurement Return on plan assets (excluding amounts included in net interest) - Actuarial loss - changes in demographic assumptions 3,949		December 31
	2021 2020 $ 1,487,554 $ 1,371,774 (1,037,916) (1,083,800) $ 449,638 $ 287,974 Fair Value of the Plan Assets Net Defined Benefit Liability (Asset) $ (1,003,099) $ 459,016 - 12,743 (7,483) 3,434 (7,483) 16,177 (32,941) (32,941) - 3,949 (Continued)

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	Present Value	Present Value
	of	the Defined			Net Defined
		Benefit	Fair Value of			Benefit
	Obligation		the	Plan Assets	Liability (Asset)
Actuarial loss - changes in financial
assumptions	$	30,358	$	-	$	30,358
Actuarial gain - experience adjustments		(45,036)		-		(45,036)
Recognized in other comprehensive loss		(10,729)		(32,941)		(43,670)
Contributions from the employer		-		(128,929)		(128,929)
Benefits paid		(88,652)		88,652		-
Account paid		(14,620)		-		(14,620)
Balance at December 31, 2020		1,371,774		(1,083,800)		287,974
Service cost
Current service cost		10,917		-		10,917
Net interest expense (income)		6,801		(5,366)		1,435
Recognized in profit or loss		17,718		(5,366)		12,352
Remeasurement
Return on plan assets (excluding amounts
included in net interest)		-		(13,584)		(13,584)
Actuarial loss - changes in demographic
assumptions		38,641		-		38,641
Actuarial gain - changes in financial
assumptions		(15,729)		-		(15,729)
Actuarial loss - experience adjustments		151,322		-		151,322
Recognized in other comprehensive loss		174,234		(13,584)		160,650
Contributions from the employer		-		(11,338)		(11,338)
Benefits paid		(76,172)		76,172		-
Balance at December 31, 2021	$	1,487,554	$	(1,037,916)	$	449,638
						(Concluded)

An analysis by function of the amounts recognized in profit or loss in respect of the defined benefit plans is as follows:

Operating costs Selling and marketing expenses General and administrative expenses Research and development expenses	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 6,240 945 4,918 249 $ 12,352	2020 $ 9,465 1,286 4,947 479 $ 16,177

Through the defined benefit plans under the Labor Standards Act, the Group is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets shall not be below the interest rate for a 2-year time deposit with local banks.
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2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plans’ debt investments.
3) Salary risk: The present value of the defined benefit obligation is calculated using the future salaries of plan participants. As such, an increase in the salaries of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

Discount rates Expected rates of salary increase	December 31
	2021 2020 0.625% 0.50% 2.25% 2.25%

If possible reasonable change in each of the significant actuarial assumptions occur and all other assumptions remain constant, the present value of the defined benefit obligation will increase (decrease) as follows:

Discount rates 0.5% increase 0.5% decrease Expected rates of salary increase 0.5% increase 0.5% decrease		December	31
		2021 $ (61,945) $ 66,092 $ 63,726 $ (60,375)	2020 $ (59,752) $ 63,935 $ 61,541 $ (58,145)

The above sensitivity analysis may not be representative of the actual changes in the present value of the defined benefit obligation as it is unlikely that the changes in assumptions will occur in isolation of one another as some of the assumptions may be correlated.

23. EQUITY

Share capital Ordinary shares Capital surplus Retained earnings Others Non-controlling interests		December 31	December 31
		2021 $ 34,313,329 18,440,875 47,787,207 5,342,113 2,062,744 $ 107,946,268	2020 $ 32,260,002 15,690,406 36,330,187 187,640 2,812,595 $ 87,280,830

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a. Share capital

Ordinary shares

Number of shares authorized (in thousands) Amount of authorized shares Number of issued and fully paid shares (in thousands) Amount of issued shares		December 31	December 31
		2021 6,500,000 $ 65,000,000 3,431,333 $ 34,313,329	2020 6,500,000 $ 65,000,000 3,226,000 $ 32,260,002

As of January 1, 2020, the amount of WLC’s issued shares was all NT$33,260,002 thousand, which consisted of 3,326,000 thousand shares at par value of NT$10.

In August 2020 and November 2020, WLC reduced capital and cancelled 40,000 thousand and 60,000 thousand treasury shares, respectively. In January 2021, the Group issued 205,333 thousand shares of TECO Electric & Machinery Co., Ltd. Hence, as of December 31, 2021, the paid-in capital was NT$34,313,329 thousand, divided into 3,431,333 thousand ordinary shares at par value of NT$10.

As of December 31, 2021, 2 thousand GDRs of WLC were traded on the Luxemburg Stock Exchange. The number of common shares represented by the GDRs was 22 thousand shares (one GDR represents 10 common shares).

b. Capital surplus

Issuance of ordinary shares The difference between the consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition Share of changes in capital surplus of associates Treasury share transactions Gain on disposal of property, plant and equipment Others		December 31	December 31
		2021 $ 12,639,452 3,124 440,288 2,254,074 2,074,231 1,029,706 $ 18,440,875	2020 $ 9,867,654 - 467,070 2,254,074 2,074,231 1,027,377 $ 15,690,406

The premium from shares issued in excess of par (share premium from issuance of ordinary shares, conversion of bonds and treasury share transactions) and donations may be used to offset a deficit; in addition, when the Group has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Group’s capital surplus and to once a year).

The capital surplus arises from changes in capital surplus of subsidiaries accounted for using the equity method, employee share options and share warrants may not be used for any purpose.

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c. Retained earnings and dividend policy

The shareholders of WLC held their regular meeting on July 15, 2021, and in that meeting, resolved the amendments to WLC’s Articles of Incorporation (the “Articles”). Under the dividends policy as set forth in the amended Articles, where WLC made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit this requirement is not applicable when the legal reserve has reached the total capital, and then any remaining profit together with prior unappropriated earnings shall be appropriated for special reserve or appropriate reversal of special reserve in accordance with the laws and regulations, and then the balance shall be used by WLC’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends to shareholders. Other than the aforementioned regulations, WLC shall reserve no lesser than 40% of the balance amount as shareholders’ profit after offsetting its loss and tax payments in the previous year, capital reserve, and special reserve adjusted by the accumulated net deduction of other equity. The profits shall be distributed in cash or in form of shares; cash dividends shall not be lesser than 70% of the total dividends.

Before the amendments, where WLC made a profit in a fiscal year, the profit shall be first utilized for paying taxes, offsetting losses of previous years, setting aside as legal reserve 10% of the remaining profit this requirement is not applicable when the legal reserve has reached the total capital, and then any remaining profit together with prior unappropriated earnings shall be appropriated for setting aside or reversing a special reserve in accordance with the laws and regulations, and then shall be used by WLC’s board of directors as the basis for proposing a distribution plan, which should be resolved in the shareholders’ meeting for the distribution of dividends to shareholders. WLC shall reserve no lesser than 40% of the balance amount as shareholders’ profit after offsetting its loss and tax payments in the previous year, capital reserve and special reserve. The profits shall be distributed in cash or in form of shares; cash dividends shall not be lesser than 70% of the total dividends.

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

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

Refer to Note 25 for the policies on the distribution of employees’ compensation and remuneration of directors and supervisors.

The appropriation of earnings for 2020 and 2019, which were approved in the shareholders’ meeting on July 15, 2021 and May 29, 2020, respectively, were as follows:

Legal reserve Special reserve Cash dividends		Appropriation of Earnings 2020 2019 $ 681,368 $ 314,968 (398,160) (932,728) 3,088,200 1,663,000 $ 3,371,408 $ 1,045,240	Dividends Per Share (NT$)
		2020 $ 681,368 (398,160) 3,088,200 $ 3,371,408	2020 2019 $ - $ - - - 0.9 0.5

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The appropriation of earnings for 2021, which were proposed by WLC’s board of directors on February 22, 2022, were as follows:

	Appropriation	Dividends Per	Dividends Per
	of Earnings	Share	(NT$)
Legal reserve	$ 1,454,522	$	-
Cash dividends	5,490,133		1.6
	$ 6,944,655

The appropriations of earnings for 2021 are subject to the resolution of the shareholders in their meeting to be held on May 13, 2022.

d. Special reserve

Special reserve		December 31	December 31
		2021 $ 2,712,250	2020 $ 3,110,410

Information regarding any changes to the above special reserve was as follows:

Balance at January 1 Appropriations Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 3,110,410 (398,160) $ 2,712,250	2020 $ 4,043,138 (932,728) $ 3,110,410

e. Other equity items
1) Exchange differences on translation of the financial statements of foreign operations

Balance at January 1 Share from subsidiaries and associates accounted for using the equity method Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ (5,905,135) (195,552) $ (6,100,687)	2020 $ (5,546,359) (358,776) $ (5,905,135)

Exchange differences relating to the translation of the results and net assets of the Group’s foreign operations from their functional currencies to the Group’s presentation currency (the New Taiwan dollar) were recognized directly in other comprehensive income and accumulated in the foreign currency translation reserve. Exchange differences previously accumulated in the foreign currency translation reserve were reclassified to profit or loss on the disposal of the foreign operation.

59 -
2) Unrealized valuation gain (loss) on financial assets at FVOCI

Balance at January 1 Unrealized gain - equity instruments Share from associates accounted for using the equity method Balance at December 31 Cash flow hedges Balance at January 1 Other equity from associates accounted for using the equity Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	2021 2020 $ 6,092,775 $ 2,435,949 2,594,208 1,258,198 2,847,284 2,398,628 $ 11,534,267 $ 6,092,775 For the Year Ended December 31
		2021 $ - (91,467) $ (91,467)	2020 $ - - $ -

3) Cash flow hedges
f. Treasury shares

Treasury share transactions for the year ended December 31, 2020 were summarized as follows:

Purpose of Buy-back To restore credibility and preserve shareholders’ rights	Number of Shares at January 1, 2020 -	Increase During the Period 100,000,000	Decrease During the Period 100,000,000	Number of Shares at December 31, 2020 -

Article 28.2 of the Securities and Exchange Act stipulates that the number of treasury shares held by WLC should not exceed 10% of the number of shares issued and that the cost of acquisition of treasury shares should not exceed the total of retained earnings, additional paid-in capital and other realized capital surplus. In addition, WLC shall neither pledge treasury shares nor exercise shareholders’ rights on these shares, such as rights to dividends and to vote.

24. OPERATING REVENUE

Sales revenue Sales of real estate Other revenue	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 152,001,410 9,918 4,653,438 $ 156,664,766	2020 $ 105,217,487 5,495,319 1,833,797 $ 112,546,603

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25. NET PROFIT (LOSS) FROM CONTINUING OPERATIONS

Non-operating Income and Expense - Gain (Loss) on Disposal of Investment

Gain (loss) on disposal of investments - commodity futures Gain on disposal of investments - foreign exchange forward contracts Gain on disposal of investments - exchange rate swap contracts Loss on disposal of investments - commodity options	For the Year Ended	For the Year Ended	December 31
		2021 $ 513,703 167,227 14,301 (16,024) $ 679,207	2020 $ (217,842) 142,504 2,349 (2,938) $ (75,927)

Non-operating Income and Expense - Impairment Loss (Recognized) Reversed

Impairment loss (recognized) reversed on property, plant and equipment Others	For the Year Ended	For the Year Ended	December 31
		2021 $ (693,801) (91) $ (693,892)	2020 $ 691 (17) $ 674

Employee Benefits Expense, Depreciation and Amortization

Short-term employment benefits Post-employment benefits Other employee benefits Depreciation Property, plant and equipment Right-of-use assets Investment properties Amortization		For the Year Ended December 31, 2021	For the Year Ended December 31, 2021	For the Year Ended December 31, 2021
		Operating Costs $ 3,540,027 $ 190,141 $ 439,493 $ 1,918,969 32,101 165,918 $ 2,116,988 $ 4,225	Operating Expenses Non-operating Expenses and Losses $ 2,529,250 $ - $ 115,367 $ - $ 301,869 $ - $ 577,770 $ 2,826 100,206 - 1,525 - $ 679,501 $ 2,826 $ 27,273 $ -	Total $ 6,069,277 $ 305,508 $ 741,362 $ 2,499,565 132,307 167,443 $ 2,799,315 $ 31,498

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For the Year Ended December 31, 2020

Short-term employment benefits Post-employment benefits Other employee benefits Depreciation Property, plant and equipment Right-of-use assets Investment properties Amortization	Operating Costs $ 3,132,714 $ 103,937 $ 410,065 $ 1,839,259 31,990 164,050 $ 2,035,299 $ 5,664	Operating Expenses Non-operating Expenses and Losses $ 2,254,057 $ - $ 75,465 $ - $ 232,115 $ - $ 261,784 $ 3,078 99,426 - 5,926 - $ 367,136 $ 3,078 $ 29,821 $ -	Total $ 5,386,771 $ 179,402 $ 642,180 $ 2,104,121 131,416 169,976 $ 2,405,513 $ 35,485

According to the Company’s Articles, the Company accrues employees’ compensation and remuneration of directors at rates of no less than 1% and no higher than 1%, respectively, of net profit before income tax, employees’ compensation, and remuneration of directors. For the years ended December 31, 2021 and 2020, the compensation of employees amounted to NT$187,000 thousand and NT$68,500 thousand, respectively, and the remuneration of directors and supervisors amounted to NT$75,000 thousand and NT$34,050 thousand, respectively. The compensation of employees and the remuneration of directors and supervisors for the years ended December 31, 2021 and 2020 were approved by the Group’s board of directors on February 22, 2022 and February 26, 2021, respectively.

Material differences between such estimated amounts and the amounts proposed by the board of directors on or before the date the annual consolidated financial statements are authorized for issue are adjusted in the year the compensation and remuneration were recognized. If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

There was no difference between the employees’ compensation and the remuneration of directors and supervisors for the years ended December 31, 2020 and 2019 resolved by WLC’s board of directors on February 26, 2021 and February 27, 2020, respectively, and the respective amounts were recognized in the consolidated financial statements.

Information on the employees’ compensation and remuneration of directors and supervisors resolved by WLC’s board of directors for 2022 and 2021 is available at the Market Observation Post System website of the Taiwan Stock Exchange.

62 -

26. INCOME TAXES RELATING TO CONTINUING OPERATIONS

a. Income tax recognized in profit or loss

Income tax expense are as follows:

Current tax In respect of the current year Income tax on unappropriated earnings Adjustments for prior year Land value increment tax Others Deferred tax In respect of the current year Adjustments to deferred tax attributable to changes in tax rates and laws Income tax expense recognized in profit or loss	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 2,173,361 83,446 (7,968) 6,156 - 2,254,995 1,615,411 (5,222) 1,610,189 $ 3,865,184	2020 $ 1,155,082 48,843 (5,279) 1,375,227 16,218 2,590,090 (280,516) (64,710) (345,226) $ 2,244,864

A reconciliation of accounting profit and income tax expense is as follows:

Profit before tax from continuing operations Income tax expense calculated at the statutory rate Equity in investees’ net gain Tax-exempt dividend income Loss on disposal of equity investments Loss on investments Tax-exempt subsidize revenue Others Unrecognized loss carryforwards/deductible temporary differences Adjustments for prior years’ tax Income tax on unappropriated earnings Land value increment tax Income tax expense recognized in profit or loss	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 19,122,498 $ 3,931,277 481,251 (111,889) - (384,000) - (23,339) (104,528) (13,190) 83,446 6,156 $ 3,865,184	2020 $ 9,250,665 $ 2,961,094 (1,008,704) (21,701) (560,411) (495,100) (3,880) 150,520 (131,035) (69,989) 48,843 1,375,227 $ 2,244,864

In July 2019, the president of the ROC announced the amendments to the statute for Industrial Innovation, which stipulate that the amounts of unappropriated earnings in 2018 and thereafter that are reinvested in the construction or purchase of certain assets or technologies are allowed as deduction when computing the income tax on unappropriated earnings. When calculating the tax on unappropriated earnings, the Group only deducts the amount of the unappropriated earnings that has been reinvested in capital expenditure.

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b. Current tax assets and liabilities

c.	Current tax assets Tax refund receivable (recorded under other non-current assets - others) Current tax liabilities Income tax payable Deferred tax assets and liabilities Deferred tax assets Loss carryforwards Pension expense not currently deductible Provision for devaluation loss on obsolete and slow-moving inventories Provision for impairment loss on idle assets Unrealized gross profit from intercompany transactions Provision for devaluation loss on long-term investments Difference between financial and tax accounting of the depreciation of property, plant and equipment Prepaid expense Loss of liquidation of investments Others Deferred tax liabilities Difference between financial and tax accounting of the depreciation of property, plant and equipment Reserve for land value increment tax Unrealized gain on investments Others		December 31	December 31
			2021 2020 $ 28,619 $ 47,864 $ 6,082,152 $ 4,557,761 December 31
			2021 $ 119,774 32,000 42,307 10,000 2,000 547,000 21,583 899,015 384,000 760,870 $ 2,818,549 $ (67,388) (153,214) (2,020,432) 26,384 $ (2,214,650)	2020 $ 300,951 32,000 34,564 17,000 6,489 547,000 400 1,173,984 - 316,157 $ 2,428,545 $ (60,930) (173,329) - 19,802 $ (214,457)

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d. Deductible temporary differences and unused loss carryforwards for which no deferred tax assets have been recognized in the consolidated balance sheets were as follows:

Loss Carryforwards Expiry in 2021 Expiry in 2022 Expiry in 2023 Expiry in 2024 Expiry in 2025 Expiry in 2026		December 31	December 31
		2021 $ - 44,883 75,676 85,267 82,435 2,186 $ 290,447	2020 $ 643,157 77,524 109,241 90,064 3,937 - $ 923,923

e. The Group’s tax loss carryforwards as of December 31, 2021 were as follows:

	Tax Loss	Tax Loss
Expiry Year	Carryforwards
2022	$	44,883
2023		152,856
2024		87,057
2025		95,532
2026		16,392
2031		13,501
	$	410,221

f. WLC’s income tax returns through 2018 had been assessed by the tax authorities.

27. EARNINGS PER SHARE

	For the Year Ended December 31	For the Year Ended December 31
2021	Earnings Per Share (In Dollars) After Income Tax (Attributable to Parent’s Shareholders) $ 4.27 $ 4.26	2020
Amounts (Numerator) After Income Tax (Attributable to Parent’s Shareholders) Shares (Denominator) (In Thousands) $ 14,642,629 3,428,520 - 7,632 $ 14,642,629 3,436,152		Amounts (Numerator) After Income Tax (Attributable to Parent’s Shareholders) Shares (Denominator) (In Thousands) $ 6,691,149 3,276,128 - 4,100 $ 6,691,149 3,280,228	Earnings Per Share (In Dollars)
			After Income Tax (Attributable to Parent’s Shareholders) $ 2.04 $ 2.04

28. OPERATING LEASE ARRANGEMENTS

Operating leases relate to leases of investment properties owned by the Group with lease terms between 5 and 10 years, with an option to extend for another 10 years. All operating lease contracts contain market review clauses in the event that the lessees exercise their options to renew. The lessees do not have bargain purchase options to acquire the assets at the expiry of the lease periods.

65 -

As of December 31, 2021 and 2020, deposits received under operating leases amounted to NT$329,321 thousand and NT$303,187 thousand, respectively (recorded under other non-current liabilities).

As of December 31, 2021, the Group’s future minimum lease receivables on non-cancelable operating lease commitments are as follows:

2022 2023-2027 After 2027	$ 1,237,025 2,028,375 232,010 $ 3,497,410

29. CAPITAL MANAGEMENT

The Group’s capital management objective is to ensure that it has the necessary financial resources and operational plan so that it can cope with the next 12 months working capital requirements, capital expenditures, debt repayments and dividends spending.

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

Key management personnel of the Group review the capital structure on a quarterly basis. As part of this review, the key management personnel, consider the cost of capital and the risks associated with each class of capital. Based on recommendations of the key management personnel, in order to balance the overall capital structure, the Group may adjust the amount of dividends paid to shareholders, the number of new shares issued or repurchased, and/or the amount of new debt issued or existing debt redeemed.

30. FINANCIAL INSTRUMENTS

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

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

December 31, 2021

Financial liabilities Financial liabilities at amortized cost Bonds payable	Carrying Amount $ 7,500,000			Fair Value	Fair Value
			Level 1 $ -	Level 2 $ 7,500,000	Level 3 $ -	Total $ 7,500,000

The fair values of the financial assets and financial liabilities included in the Level 2 categories above have been determined in accordance with the income approach based on a discounted cash flow analysis. The observable inputs including bond duration, bond interest rates and credit rating.

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

December 31, 2021 Financial assets at FVTPL Derivatives not designated as hedging instruments Derivatives financial assets for hedging Financial assets at fair value FVTOCI Investments in equity instruments Listed securities in the ROC Unlisted securities Financial liabilities at FVTPL Derivatives not designated as hedging instruments December 31, 2020 Financial assets at FVTPL Derivatives not designated as hedging instruments Corporate bonds Derivatives financial assets for hedging	Level 1 $ 1,940 - $ 1,940 $ 15,627,085 - $ 15,627,085 $ - Level 1 $ 73,329 - - $ 73,329	Level 2 $ 14,207 89,232 $ 103,439 $ - - $ - $ 37,439 Level 2 $ - - 8,282 $ 8,282	Level 3 $ - - $ - $ - 663,502 $ 663,502 $ - Level 3 $ - 5,683,859 - $ 5,683,859	Total $ 16,147 89,232 $ 105,379 $ 15,627,085 663,502 $ 16,290,587 $ 37,439 Total $ 73,329 5,683,859 8,282 $ 5,765,470 (Continued)

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Financial assets at fair value FVTOCI Investments in equity instruments Listed securities in the ROC Unlisted securities Financial liabilities at FVTPL Derivatives not designated as hedging instruments	Level 1 $ 6,475,588 - $ 6,475,588 $ -	Level 2 $ - - $ - $ 8,374	Level 3 $ - 435,056 $ 435,056 $ -	Total $ 6,475,588 435,056 $ 6,910,644 $ 8,374 (Concluded)

2) There were no transfers between Levels 1, 2 and 3 for the years ended December 31, 2021 and 2020.
3) Reconciliation of Level 3 fair value measurements of financial instruments.

For the year ended December 31, 2021

Financial Assets Balance at January 1, 2021 Additions Capital reduction and refund Recognized in other comprehensive income Effects of exchange rate changes Balance at December 31, 2021 For the year ended December 31, 2020 Financial Assets Balance at January 1, 2020 Additions Recognized in other comprehensive income Effects of exchange rate changes Balance at December 31, 2020	Financial Assets at FVTOCI
	Equity Instruments $ 435,056 177,887 (3,615) 54,678 (504) $ 663,502 Financial Assets at FVTOCI
	Equity Instruments $ 593,981 58,950 (222,166) 4,291 $ 435,056

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4) Valuation techniques and inputs applied for Level 2 fair value measurement

	Financial Instruments	Valuation Techniques and Inputs
	Derivatives - foreign exchange	Discounted cash flow. Future cash flows are estimated based
	forward contracts	on observable forward exchange rates at the end of the
		reporting period and contract forward rates, discounted at a
		rate that reflects the credit risk of various counterparties.
	Derivatives - exchange rate swap	Discounted cash flow. Future cash flows are estimated based
	contracts	on observable forward exchange rates at the end of the
		reporting period and contract forward rates, discounted at a
		rate that reflects the credit risk of various counterparties.
	5) Valuation techniques and inputs applied for Level 3 fair value measurement
	Financial Instruments	Valuation Techniques and Inputs
	Unlisted equity securities	Market approach. Fair values are determined based on
		observable and comparable companies’ fair values at the end
		of the reporting period, adjusted by price earnings ratio and
		price-to-book ratio of the investees.
		Net asset method. Fair values are determined based on the
		book value of companies.
		Discounted cash flow. Present values are determined based on
		future cash flows discounted at market yield.
	Derivatives - options	Option pricing models. Fair values are determined using option
		pricing models where significant unobservable input is
		historical volatility.
	Hybrid instruments - corporate	Discounted cash flow. Future cash flows are estimated based
	bonds	on contract rates and discounted at a rate that reflects the
		credit risk of various counterparties.
	Categories of financial instruments
		December 31
		2021 2020
	Financial assets
	Financial assets at amortized cost
	Cash and cash equivalents	$ 10,387,581 $ 11,944,408
	Contract assets - current	5,750,344 4,460,992
	Notes receivable and trade receivables (including related
	parties)	13,673,100 10,517,263
	Finance lease receivables (current	and non-current) 720,585 776,713
	Other receivables	1,620,595 887,091
	Other financial assets	530,650 705,277
	Refundable deposits	207,622 221,314
		(Continued)

c. Categories of financial instruments
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Financial assets at amortized cost - current

Derivative financial assets for hedging (current and non-current)
Financial assets at FVTPL (current and non-current)
Financial assets at FVTOCI (current and non-current)
Financial liabilities
Financial liabilities at FVTPL (current and non-current)
Financial liabilities at amortized cost
Short-term borrowings
Contract liabilities
Notes payable and trade payables
Other payables
Bonds payable
Long-term borrowings (including current portion)
Deposits received (accounted for as other current and
non-current liabilities)

**December 31 **

2021
2020
$ - $ 1,315,970

89,232
8,282
16,147
5,757,188
16,290,587
6,910,644
37,439
8,374
7,108,766
6,591,019
3,426
1,499
8,840,868
7,729,729
4,861,341
5,143,921
7,500,000
-
35,505,033
37,569,229
920,410
532,530
(Concluded)

d. Financial risk management objectives and policies

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

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

1) Market risk

The Group’s activities exposed is primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Group entered into foreign exchange forward contracts and interest rate swaps contracts to hedge foreign currency risk and interest rate risk.

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

a) Foreign currency risk

The Group had foreign currency denominated sales and purchases, which exposed the Group to foreign currency risk. Exchange rate exposures were managed within approved policy parameters utilizing foreign exchange forward contracts.

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It is the Group’s policy to negotiate the terms of the hedge derivatives to match the terms of the hedged item to maximize hedge effectiveness.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) at the end of the reporting period were as follows:

Assets U.S. dollar Japanese yen Euro Singapore dollar Hong Kong dollar Australian dollar Malaysian ringgit Indonesian rupiah Liabilities U.S. dollar Japanese yen Euro Malaysian ringgit Renminbi Swiss franc Indonesian rupiah	December 31
	2021 2020 $ 22,471,643 $ 7,361,149 122,926 27,663 953,435 487,961 67,335 - 15,903 8,771 31,714 12,493 - 713,350 3,267,147 111,268 6,392,384 14,723,112 - 1,108 830 159 - 48,113 743 795,234 513 549 103,634 -

The carrying amounts of the Group’s derivatives exposed to foreign currency risk at the end of the reporting period were as follows:

Assets U.S. dollar Euro Liabilities U.S. dollar Euro	December 31
	2021 2020 $ 9,660,314 $ 8,661,457 795,675 - 10,204,046 8,951,264 600,096 317,514

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Sensitivity analysis

The Group was mainly exposed to the U.S. dollars.

The following table details the Group’s sensitivity to a 1% increase and decrease in the New Taiwan dollar (functional currency) against the relevant foreign currencies. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts the translation at the end of the reporting period for a 1% change in foreign currency rates.

Profit or loss	U.S. Dollar Impact
	For the Year Ended December 31
	2021 2020 $ 155,355 $ (95,784)

b) Interest rate risk

The Group was exposed to interest rate risk because entities in the Group borrow funds at both fixed and floating interest rates.

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

Fair value interest rate risk Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities		December 31	December 31
		2021 $ 7,500,000 $ - 42,613,799	2020 $ - $ 1,315,970 44,160,248

Sensitivity analysis

The sensitivity analysis below shows the possible effect on profit and loss assuming a change in was determined based on the Group’s exposure to interest rates for financial instruments at the end of the reporting period. For floating liabilities, the analysis was prepared assuming the amount of each liability outstanding at the end of the reporting period was outstanding for the whole year.

If interest rates had been 1% basis points higher and all other variables were held constant, the Group’s pre-tax, net profit for the years ended December 31, 2021 and 2020 would have decreased by NT$426,138 thousand and NT$428,443 thousand, respectively.

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Hedge accounting

For the year ended December 31, 2021

The Group’s hedging strategy is to enter into exchange rate swap contracts to avoid exchange rate exposure on 100% of the fair value of its foreign currency receipts and payments and to manage exchange rate exposure. Those transactions are designated as fair value hedges. Adjustments are recognized directly in profit or loss and are presented as hedged items on the consolidated statements of comprehensive income.

Carrying Amount
Change in Value
Used for
Calculating Hedge
Asset
Liability
Effectiveness
RMB
10,204
$ -
$ -
RMB
9,453
-
-
RMB
508
-
-
RMB
387
-
-

For the year ended December 31, 2020

The Group’s hedging strategy is to enter into exchange rate swap contracts to avoid exchange rate exposure on 100% of the fair value of its foreign currency denominated receipts and payments and to manage exchange rate exposure. Those transactions are designated as fair value hedges. Adjustments are recognized directly in profit or loss and are presented as hedged items on the consolidated statements of comprehensive income.

Hedging
Notional
Line Item in
Instrument
Currency
Amount
Maturity
Forward Price
Balance Sheet
Fair value hedges
Exchange rate swap
contracts
USD to NTD
USD21,000/
NTD607,457
2021.1.13
$ 590,059
Financial liabilities
for hedging
Exchange rate swap
contracts
USD to NTD
USD30,000/
NTD867,795
2021.1.13
842,940
Financial liabilities
for hedging
Exchange rate swap
contracts
USD to NTD
USD30,000/
NTD867,810
2021.1.13
842,940
Financial liabilities
for hedging
Exchange rate swap
contracts
USD to NTD
USD21,000/
NTD607,467
2021.1.13
590,058
Financial liabilities
for hedging
Exchange rate swap
contracts
USD to NTD
USD30,000/
NTD867,810
2021.1.13
842,940
Financial liabilities
for hedging
Exchange rate swap
contracts
USD to NTD
USD27,000/
NTD781,029
2021.1.13
758,646
Financial liabilities
for hedging
Exchange rate swap
contracts
USD to NTD
USD30,000/
NTD867,810
2021.1.13
842,940
Financial liabilities
for hedging
Exchange rate swap
contracts
USD to NTD
USD11,000/
NTD318,197
2021.1.13
309,078
Financial liabilities
for hedging
Exchange rate swap
contracts
USD to RMB
USD21,000/
RMB141,259
2021.1.15
RMB
145,695
Financial assets for
hedging
Exchange rate swap
contracts
USD to RMB
USD80,000/
RMB538,128
2021.1.15
RMB
555,027
Financial assets for
hedging
Exchange rate swap
contracts
USD to RMB
USD21,000/
RMB141,246
2021.1.15
RMB
145,669
Financial assets for
hedging
Exchange rate swap
contracts
USD to RMB
USD40,000/
RMB269,040
2021.1.15
RMB
277,466
Financial assets for
hedging
Exchange rate swap
contracts
USD to RMB
USD27,000/
RMB181,607
2021.1.15
RMB
187,300
Financial assets for
hedging

Carrying Amount
Change in Value
Used for
Calculating Hedge
Asset
Liability
Effectiveness
$ -
$ (17,398 )
$ -
-
(24,855 )
-
-
(24,870 )
-
-
(17,409 )
-
-
(24,870 )
-
-
(22,383 )
-
-
(24,870 )
-
-
(9,119 )
-
RMB
4,436
-
-
RMB
16,899
-
-
RMB
4,423
-
-
RMB
8,426
-
-
RMB
5,693
-
-

2) Credit risk

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

a) The carrying amount of the respective recognized financial assets as stated in the balance sheets; and
b) The maximum amount the entity would have to pay if the financial guarantee is called upon, irrespective of the likelihood of the guarantee being exercised.
73 -

The Group adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group’s exposure and the credit ratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded is spread amongst the approved counterparties. Also, credit exposure is controlled by setting credit limits that are reviewed and approved annually.

In order to minimize credit risk, the management of the Group has delegated a team responsible for the determination of credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue receivables. In addition, the Group reviews the recoverable amount of each individual trade receivable at the end of the reporting period to ensure that adequate impairment losses are made for irrecoverable amounts. In this regard, the directors of the Group consider that the Group’s credit risk was significantly reduced.

3) Liquidity risk

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

a) The following table details the Group’s remaining contractual maturities for its non-derivative financial liabilities with agreed upon repayment periods.

December 31, 2021 Non-derivative financial liabilities Variable interest rate liabilities Lease liabilities Fixed interest rate liabilities Non-interest bearing December 31, 2020 Non-derivative financial liabilities Variable interest rate liabilities Lease liabilities Non-interest bearing	1 Year $ 17,827,847 83,709 - 14,491,770 $ 32,403,326 1 Year $ 12,753,419 110,061 13,262,780 $ 26,126,260	1-2 Years $ 16,648,182 68,394 - 29,024 $ 16,745,600 1-2 Years $ 18,144,584 69,523 28,216 $ 18,242,323	2-5 Years $ 7,000,000 100,609 7,500,000 101,825 $ 14,702,434 2-5 Years $ 12,124,475 129,031 115,184 $ 12,368,690	5+ Years $ 1,137,770 141,279 - - $ 1,279,049 5+ Years $ 1,137,770 153,615 - $ 1,291,385	Total $ 42,613,799 393,991 7,500,000 14,622,619
					$ 65,130,409
					Total $ 44,160,248 462,230 13,406,180
					$ 58,028,658

74 -
b) The Group’s derivative financial instruments with agreed upon settlement dates were as follows: December 31, 2021

On Demand or Less Than 1 Month 1-3 Months 3 Months to 1 Year Net settled Commodity futures contracts $ 16,434 $ (19,571) $ 5,077 Foreign exchange forward contracts 13,115 146 946 Exchange rate swap contracts 47,904 - 3,889 $ 77,453 $ (19,425) $ 9,912 December 31, 2020 On Demand or Less Than 1 Month 1-3 Months 3 Months to 1 Year Net settled Commodity futures contracts $ (617) $ 62,663 $ 11,283 Foreign exchange forward contracts (8,020) (44) (310) Exchange rate swap contracts 8,282 - - $ (355) $ 62,619 $ 10,973	1-5 Years $ - - - $ - 1-5 Years $ - - - $ -	Total $ 1,940 14,207 51,793 $ 67,940 Total $ 73,329 (8,374) 8,282 $ 73,237

e. Transfers of financial assets

Factored trade receivables that are not overdue at the end of the year were as follows:

Counterparty Receivables Factoring Proceeds Amount Reclassified to Other Receivables December 31, 2021 CTBC bank $ 150,495 $ 5,786 December 31, 2020 CTBC bank $ 137,121 $ 21,266	Advances Received - Unused US$ 2,700 US$ 2,700	Advances Received - Used Annual Interest Rates on Advances Received (Used) (%) $ - - $ - -

75 -

31. TRANSACTIONS WITH RELATED PARTIES

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

Related Party Category

Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Associate
Substantive related party
Substantive related party
Substantive related party
Substantive related party
Substantive related party
Substantive related party

b. Sales

For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
2021 2020 $ 6,458 $ 8,782 1,751,701 903,376 $ 1,758,159 $ 912,158 For the Year Ended December 31
2021 $ 46,197 1,029 $ 47,226 For the Year Ended		2020 $ 44,514 993 $ 45,507 December 31
	2021 $ 33,027 4,961 $ 37,988	2020 $ 30,100 3,891 $ 33,991

76 -

e. Administrative expenses

Associates Other related parties	For the Year Ended	For the Year Ended	December 31
		2021 $ 14,889 13,558 $ 28,447	2020 $ 12,955 10,725 $ 23,680

The stock registration matters of WLC and related parties were handled together. The related fees allocated to the related parties were charged against general and administrative expenses.

f. Dividend income

HannStar Display Corp. HannStar Board Corp. Other related parties g. Notes receivable Associates h. Trade receivables Other related parties i. Notes payable Associates j. Trade payables Other related parties	For the Year Ended	For the Year Ended	December 31
		2021 2020 $ 149,816 $ - 140,259 106,722 7,705 2,890 $ 297,780 $ 109,612 December 31
		2021 2020 $ 2,186 $ 6,312 December 31
		2021 2020 $ 17,229 $ 39,054 December 31
		2021 2020 $ 10,257 $ 16,857 December 31
		2021 $ 601	2020 $ 684

77 -
k. Other receivables (excluding financing provided)

Associates Other related parties		December 31	December 31
		2021 $ 19,279 2,648 $ 21,927	2020 $ 9,945 2,598 $ 12,543

l. Financing provided

Financing provided for years ended December 31, 2021 and 2020 are as follows:

Related Parties Hangzhou Walsin Power Cable & Wire Co., Ltd. Related Parties Hangzhou Walsin Power Cable & Wire Co., Ltd.		December 31, 2021	December 31, 2021
	Highest Balance for the Period $ 350,991	Ending Balance Interest Income Interest Rate $ 347,329 $ 15,310 4.35% December 31, 2020
	Highest Balance for the Period $ 350,663	Ending Balance $ 349,187	Interest Income Interest Rate $ 16,159 4.35%-4.79%

m. Guarantee deposits

Associates Other related parties		December 31	December 31
		2021 $ 7,453 282 $ 7,735	2020 $ 7,225 282 $ 7,507

n. Disposal of property, plant and equipment (included investment properties)

Prosperity Dielectrics Co., Ltd.		For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021	Gain on Disposals $ -		2020
		Price $ -			Price $ 295	Gain on Disposals $ 295

78 -

o. Compensation of key management personnel

The remuneration of directors and key executives was as follows:

Short-term benefits Post-employment benefits		December 31	December 31
		2021 $ 217,518 1,392 $ 218,910	2020 $ 127,218 1,414 $ 128,632

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

32. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collaterals for bank borrowings, the deposits for completing constructions and tariff guarantees for imported raw materials:

Refundable deposits (recorded under other financial assets - current) Restricted deposits (recorded under other financial assets - current) Pledged time deposits (recorded under other financial assets - current) Pledged time deposits (recorded under other financial assets - non-current) Finance lease receivables - current Finance lease receivables - non-current Other non-current assets		December 31	December 31
		2021 $ 61,964 388,193 8,683 - 58,042 662,543 52,534 $ 1,231,959	2020 $ 79,977 538,468 - 8,730 56,128 720,585 52,406 $ 1,456,294

33. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, unrecognized commitments and significant contingencies of the Group at December 31, 2021 and 2020 were as follows:

a. Outstanding letters of credit not reflected in the accompanying consolidated financial statements as of December 31, 2021 and 2020 were as follows (in thousands):

U.S. dollar Japanese Yen Euro Renminbi New Taiwan dollar	December 31
	2021 2020 US$ 9,572 US$ 17,455 JPY 160,710 JPY 108,812 EUR 26,852 EUR 4,770 RMB 13,134 RMB 13,134 NT$ 47,575 NT$ 82,347

79 -
b. Outstanding standby letters of credit not reflected in the consolidated financial statements as follows (in thousands):

New Taiwan dollar U.S. dollar Renminbi		December 31	December 31
		2021 NT$ 665,286 US$ 30 RMB 111,504	2020 NT$ 392,784 US$ 30 RMB 41,533

c. Based on the tariff and relevant regulations, the Group shall issue a letter of credit to import goods and to meet the needs of post-release duty payment. The guaranteed amount was as follows:

New Taiwan dollar		December 31	December 31
		2021 NT$ 462,000	2020 NT$ 434,000

d. Non-cancelable raw material procurement contracts were as follows:

U.S. dollar Renminbi		December 31	December 31
		2021 US$ 42,595 RMB 259,005	2020 US$ 22,681 RMB -

e. The Group entered into a contract for the construction of new plants on the Group’s own land. The amount of the unrecognized commitments were as follow:

New Taiwan dollar U.S. dollar Renminbi		December 31	December 31
		2021 NT$ 2,702,350 US$ 4,362 RMB 395,368	2020 NT$ - US$ 115,670 RMB -

34. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

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

December 31, 2021

		Foreign			Carrying
		Currency	Exchange Rate		Amount
Financial assets
Monetary items
U.S. dollar	$	811,837	27.6800	$	22,471,643
Japanese yen		511,128	0.2405		122,926
					(Continued)

80 -

		Foreign			Carrying
		Currency	Exchange Rate		Amount
Euro	$	30,442	31.3200	$	953,435
Hong Kong dollar		4,481	3.5490		15,903
Australian dollar		1,579	20.0800		31,714
Singapore dollars		3,291	20.4600		67,335
Indonesian rupiah		1,650,074,291	0.00198		3,267,147
Non-monetary items
U.S. dollar		320	27.6800		8,864
Financial liabilities
Monetary items
U.S. dollar		230,939	27.68		6,392,384
Euro		27	31.3200		830
Renminbi		171	4.3416		743
Swiss franc		17	31.1750		513
Indonesian rupiah		52,340,604	0.00198		103,634
Non-monetary items
U.S. dollar		1,353	27.68		37,439
					(Concluded)
December 31, 2020
		Foreign			Carrying
		Currency	Exchange Rate		Amount
Financial assets
Monetary items
U.S. dollar	$	258,467	28.4800	$	7,361,149
Japanese yen		100,120	0.2763		27,663
Euro		13,934	35.0200		487,961
Hong Kong dollar		2,388	3.6730		8,771
Australian dollar		596	21.9500		12,493
Malaysian ringgit		105,067	6.7895		713,350
Indonesian rupiah		54,811,630	0.0020		111,268
Non-monetary items
U.S. dollar		201,893	28.4800		5,749,918
Renminbi		43,268	4.3648		188,857
Financial liabilities
Monetary items
U.S. dollar		516,963	28.4800		14,723,112
Japanese yen		4,011	0.2763		1,108
Euro		5	35.0200		159
Malaysian ringgit		7,086	6.7895		48,113
Renminbi		182,191	4.3648		795,234
Swiss franc		17	32.3050		549
Non-monetary items
U.S. dollar		6,377	28.4800		181,613

81 -

For the years ended December 31, 2021 and 2020, realized and unrealized net foreign exchange losses were NT$237,222 thousand and NT$66,726 thousand, respectively. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies in the Group.

35. SEPARATELY DISCLOSED ITEMS

a. Information about on significant transactions and information on investees:
1) Financing provided to others (Table 1)
2) Endorsements/guarantees provided (Table 2)
3) Marketable securities held (Table 3)
4) Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital (Table 4)
5) Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital (Table 5)
6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital (None)
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 6)
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 7)
9) Trading in derivative instrument (Notes 7 and 8)
10) Information on investees (Table 8)
11) Intercompany relationships and significant intercompany transactions (Table 10)
b. Information on investments in mainland China:
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area (Table 9)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses (Table 10):
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the period;
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the period;
- c) The amount of property transactions and the amount of the resultant gains or losses;
82 -
d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the period and the purposes;
e) The highest balance, the ending period balance, the interest rate range, and total current period interest with respect to the financing of funds; and
f) Other transactions that have a material effect on the profit or loss for the period or on the financial position, such as the rendering or receipt of services.
c. Information of major shareholders: List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (Table 11)

36. SEGMENT INFORMATION

a. Basic information
1) Classification

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided.

a) Wires and cables

The segment’s main products include copper rods, wires, connectors and components which are sold to industries involving cables and wires, communications cable, heavy electronics, home electrical appliances and construction.

b) Stainless steel

The segment’s main products included smelting, rolled stainless steel, carbon steel and precision alloy wire which are sold to industries involving construction components, crankshafts, machine tools, plumbing, heat exchange, drainage, petrochemicals and construction.

c) Real estate

Real estate is responsible for the development of commercial and real estate complexes and real estate management. Furthermore, the modes of operation are the construction of residences, offices, markets and hotels, and the offering of rental space, operating management and after-sales services.

d) Administration and investing

The segment of administration and investing refers to other investments in mainland China.

2) Estimates of operating segment income and expenses, assets and liabilities

Accounting policies of operating segments are the same with those summarized in Note 4 to the consolidated financial statements. Operating segment income and expenses are measured based on estimated future potential profit and pre-tax operating profit adjusted by hedge accounting. Sales and transfers between segments are treated as transactions with third parties and evaluated at fair value.

83 -

The Group does not allocate income tax expense (benefit), investment income (loss) recognized under equity method, foreign exchange gain (loss), net investment income (loss), gain (loss) on disposal of investments, gain (loss) on valuation of financial assets and liabilities and extraordinary items to reportable segments. The amounts reported are consistent with the report used by chief operating decision maker.

3) Identification of operating segments

The reported operating segments are classified according to the different products and services that are managed separately because they use different technology and selling strategies.

b. Financial information

1) Segment revenue and results:

							(NT$	in Thousand)
	Wires and					Administration
	Cables	Stainless Steel	Resource	Real Estate		and Investing		Total
For the year ended
December 31, 2021
External net sales and operating
revenues	$ 64,422,883	$ 65,297,118 $	8,571,368	$	1,882,235	$ 16,491,162	$	156,664,766
Operating profit	2,239,742	5,904,114	4,009,584		214,240	977,872		13,345,552
Net non-operating income
(expenses)
Net interest income (expenses)								(325,999 )
Share of profit of associates
accounted for using the equity
method								4,808,211
Dividend income								561,499
Gain on disposal of property,
plant and equipment								20,468
Gain on disposal of investments								679,207
Foreign exchange gain, net								(237,222 )
Gain on financial assets and
liabilities at fair value through
profit or loss								647,228
Impairment loss								(693,892 )
Net other income								317,446
Consolidated income before income
tax							$	19,122,498
For the year ended
December 31, 2020
External net sales and operating
revenues	41,378,992	46,030,715	-		7,099,820	18,037,076	$	112,546,603
Operating profit	1,242,325	1,196,472	(53,818 )		3,583,825	1,252,635		7,221,439
Net non-operating income
(expenses)
Net interest income (expenses)								(278,459 )
Share of profit of associates
accounted for using the equity
method								1,696,319
Dividend income								110,990
Gain on disposal of property,
plant and equipment								(7,979 )
Loss on disposal of investments								87,696
Foreign exchange loss, net								(66,726 )
Gain on financial assets and
liabilities at fair value through
profit or loss								732,121
Impairment loss								674
Net other expenses								(245,410)
Consolidated income before income
tax							$	9,250,665

84 -

2) Segment assets and liabilities

Wires and Cables Stainless Steel Resource Real Estate Administration and Investing Segment assets December 31, 2021 $ 15,420,471 $ 38,002,224 $ 17,042,352 $ 28,324,476 $ 84,245,375 December 31, 2020 11,208,815 30,235,244 15,047,662 27,684,853 67,387,432 Segment liabilities December 31, 2021 11,025,954 16,632,104 7,578,444 12,893,795 26,958,333 December 31, 2020 3,902,905 14,463,048 11,710,614 12,371,783 21,834,826	Total $ 183,034,898
	$ 151,564,006
	$ 75,088,630
	$ 64,283,176

3) Geographical information

The Group’s revenue from external customers and non-current assets, excluding those classified as held for sale, financial instruments, deferred tax assets, and post-employment benefit, categorized by geographical location is as follows:

Asia United States of America Europe Others		Revenue from External Customers 2021 2020 $ 134,031,146 $ 90,763,089 17,315,503 17,896,829 3,662,416 2,048,572 1,655,701 1,838,113 $ 156,664,766 $ 112,546,603		Non-current Assets	Non-current Assets
				December 31
		2021 $ 134,031,146 17,315,503 3,662,416 1,655,701 $ 156,664,766		2021 $ 54,005,146 225,071 - - $ 54,230,217	2020 $ 46,169,318 156,460 - - $ 46,325,778

Note: Revenue from external customers is classified by geographical location.

4) Information about major customer

No single customer contributed 10% or more to the Group’s revenue for both 2021 and 2020.

85 -

TABLE 1

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2021 (In thousands of New Taiwan Dollars and U.S. Dollars)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period	Ending Balance	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss		Collateral	Financing Limit for Each Borrower (Note 1)	Aggregate Financing Limit (Note 1)
													Item	Value
0	Walsin Lihwa Corporation	PT. Walsin Nickel Industrial Indonesia	Other receivables	Yes	$ 17,824,000 (US$ 640,000)	$ 8,857,600 (US$ 320,000)	$ - (US$ -)	3.50	Operating capital	$ -	Operating capital and equipment purchase	$ -	-	$ -	$ 42,353,410 (US$ 1,530,109)	$ 42,353,410 (US$ 1,530,109)

Notes:

According to the financing provided by Walsin Lihwa Corporation, the limit on the amount of financing provided to a single enterprise that holds directly or indirectly 100% of the voting rights of a subsidiary cannot exceed 40% of the equity presented in the consolidated financial statements of Walsin Lihwa Corporation.
a. The limit on the amount of financing provided to a single enterprise was as follows:
PT. Walsin Nickel Industrial Indonesia = $105,883,524 × 40% ＝ $42,353,410 (US$1,530,109)
b. The limit on the amount of financing provided was as follows:

The limit on the amount of financing provided = $105,883,524 × 40% ＝ $42,353,410 (US$1,530,109)

Amounts are stated in thousands of New Taiwan dollars, except those stated in thousands of U.S. dollars.
The currency exchange rate as of December 31, 2021 was as follows: US$ to NT$ = 1:27.68.
86 -

TABLE 1-1

WALSIN LIHWA HOLDINGS LIMITED AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, U.S. Dollars and Renminbi)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period	Ending Balance	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss		Collateral	Financing Limit for Each Borrower (Note 1)	Aggregate Financing Limit (Note 1)
													Item	Value
1	Walsin (China) Investment Co., Ltd.	Hangzhou Walsin Power Cable & Wire Co., Ltd. Walsin (Nanjing) Construction Limited Yantai Walsin Stainless Steel Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Changshu Walsin Specialty Steel Co., Ltd. Dongguan Walsin Wire & Cable Co., Ltd. Jiangyin Walsin Steel Cable Co., Ltd. Shanghai Walsin Lihwa Power Wire & Cable Co., Ltd.	Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables	Yes Yes Yes Yes Yes Yes Yes Yes	350,991 (RMB 80,000) 4,387,390 (RMB 1,000,000) 6,612,155 (US$ 100,000) (RMB 860,000) 1,805,170 (US$ 45,000) (RMB 120,000) 2,393,248 (US$ 58,000) (RMB 170,000) 2,282,800 (US$ 80,000) 2,038,856 (US$ 10,000) (RMB 400,000) 256,815 (US$ 9,000)	347,329 (RMB 80,000) 4,341,610 (RMB 1,000,000) 6,501,785 (US$ 100,000) (RMB 860,000) 1,766,593 (US$ 45,000) (RMB 120,000) 2,343,514 (US$ 58,000) (RMB 170,000) 2,214,400 (US$ 80,000) 2,013,444 (US$ 10,000) (RMB 400,000) 249,120 (US$ 9,000)	347,329 (RMB 80,000) 3,023,515 (RMB 696,404) 3,239,085 (US$ 60,115) (RMB 362,792) 1,234,307 (US$ 44,592) (RMB -) 1,543,714 (US$ 55,770) (RMB -) 1,895,443 (US$ 68,477) 1,168,579 (US$ 8,708) (RMB 213,640) 247,653 (US$ 8,947)	4.35 4.05 1.15-3.00 1.15-1.65 1.15-1.65 1.15-1.65 1.15-3.00 1.15-1.65	Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital	- - - - - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital	- - - - - - - -	- - - - - - - -	- - - - - - - -	1,780,563 (US$ 64,325) 42,353,410 (US$ 1,530,109) 42,353,410 (US$ 1,530,109) 42,353,410 (US$ 1,530,109) 42,353,410 (US$ 1,530,109) 42,353,410 (US$ 1,530,109) 42,353,410 (US$ 1,530,109) 445,141 (US$ 16,081)	1,780,563 (US$ 64,325) 42,353,410 (US$ 1,530,109) 42,353,410 (US$ 1,530,109) 42,353,410 (US$ 1,530,109) 42,353,410 (US$ 1,530,109) 42,353,410 (US$ 1,530,109) 42,353,410 (US$ 1,530,109) 1,780,563 (US$ 64,325)
2	Dongguan Walsin Wire & Cable Co., Ltd.	Walsin (China) Investment Co., Ltd.	Other receivables	Yes	2,851,804 (RMB 650,000)	2,822,047 (RMB 650,000)	2,396,200 (RMB 551,915)	2.70	Operating capital	-	Operating capital	-	-	-	42,353,410 (US$ 1,530,109)	42,353,410 (US$ 1,530,109)
3	Walsin International Investments Limited	Walsin (China) Investment Co., Ltd. Walsin Lihwa Corporation PT. Walsin Nickel Industrial Indonesia	Other receivables Other receivables Other receivables	Yes Yes Yes	15,794,322 (US$ 382,000) (RMB 1,127,000) 9,844,575 (US$ 345,000) 6,920,000 (US$ 250,000)	15,466,754 (US$ 382,000) (RMB 1,127,000) 9,549,600 (US$ 345,000) 6,920,000 (US$ 250,000)	11,040,170 (US$ 242,000) (RMB 1,000,000) - (US$ -) 6,920,000 (US$ 250,000)	0.98-2.60 0.12-0.23 3.50	Operating capital Operating capital Operating capital	- - -	Operating capital Operating capital Operating capital	- - -	- - -	- - -	42,353,410 (US$ 1,530,109) 42,353,410 (US$ 1,530,109) 7,322,605 (US$ 264,537)	42,353,410 (US$ 1,530,109) 42,353,410 (US$ 1,530,109) 7,322,605 (US$ 264,537)
																(Continued)

87 -

Notes:

According to the financing regulations provided by Walsin (China) Investment Co., Ltd., Dongguan Walsin Wire & Cable Co., Ltd. and Walsin International Investments Ltd., the total limit on the amount of the financing provided to a single enterprise that holds directly or indirectly 100% of the voting rights of a subsidiary whose equity is 100%-owned, directly or indirectly by the parent company cannot exceed 40% of the equity of the parent company as presented in the consolidated financial statements of Walsin Lihwa Corporation. The limit on the amount of financing provided to a single enterprise that holds less than 100% of a subsidiary whose equity is less than 100%-owned, directly or indirectly by its parent company, cannot exceed 40% of the parent company’s equity as presented in its the consolidated financial statements of a subsidiary. If the financing is an one-time funding, the amount for an individual loan shall not exceed 40 % of the financing company’s net worth as stated in the financing company’s most current consolidated financial statements. If it is a revolving funding, the amount for an individual loan shall not exceed 10 % of the financing company’s net worth in the financing company’s most current consolidated financial statements.
a. The limit on the amount of financing provided to a single enterprise was as follows:

Jiangyin Walsin Steel Cable Co., Ltd. = $105,883,524 × 40% ＝ $42,353,410 (US$1,530,109) Shanghai Walsin Lihwa Power Wire & Cable Co., Ltd. = US$160,812×10% ＝ US$16,081 (445,141) Walsin (China) Investment Co., Ltd. = $105,883,524 × 40% ＝ $42,353,410 (US$1,530,109) Walsin Lihwa Corporation = $105,883,524 × 40% ＝ $42,353,410 (US$1,530,109) Walsin (Nanjing) Construction Limited = $105,883,524 × 40% ＝ $42,353,410 (US$1,530,109) Yantai Walsin Stainless Steel Co., Ltd. = $105,883,524 × 40% ＝ $42,353,410 (US$1,530,109) Jiangyin Walsin Specialty Alloy Materials Co., Ltd. = $105,883,524 × 40% ＝ $42,353,410 (US$1,530,109) Changshu Walsin Specialty Steel Co., Ltd. = $105,883,524 × 40% ＝ $42,353,410 (US$1,530,109) Dongguan Walsin Wire & Cable Co., Ltd. = $105,883,524 × 40% ＝ $42,353,410 (US$1,530,109) Walsin Lihwa Holdings Limited = $105,883,524 × 40% ＝ $42,353,410 (US$1,530,109) Hangzhou Walsin Power Cable & Wire Co., Ltd. = US$160,812 × 40% ＝ US$64,325 (1,780,563) PT. Walsin Nickel Industrial Indonesia= US$661,343 × 40% ＝ US$264,537 (7,322,605)

b. The limit on the amount of financing provided was as follows:

Walsin Lihwa Corporation = $105,883,524 × 40% ＝ $42,353,410 (US$1,530,109) Walsin (China) Investment Co., Ltd. = US$160,812 × 40% ＝ US$64,325 ($1,780,563)

Amounts are stated in thousands of New Taiwan dollars, except those stated in thousands of U.S. dollars and Renminbi.
The currency exchange rates as of December 31, 2021 were as follows: US$ to NT$ = 1:27.68; RMB to NT$ = 1:4.34161; US$ to RMB = 1:6.3757.

(Concluded)

88 -

TABLE 1-2

CONCORD INDUSTRIES LIMITED AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, U.S. Dollars and Renminbi)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period	Ending Balance	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss		Collateral	Financing Limit for Each Borrower (Note 1)	Aggregate Financing Limit (Note 1)
													Item	Value
4	Concord Industries Limited	Walsin (China) Investment Co., Ltd.	Other receivables	Yes	$ 4,387,390 (RMB 1,000,000)	$ - (RMB -)	$ - (RMB -)	-	Operating capital	$ -	Operating capital	$ -	-	$ -	$ 42,353,410 (US$ 1,530,109)	$ 42,353,410 (US$ 1,530,109)
5	Changshu Walsin Specialty Steel Co., Ltd.	Walsin (China) Investment Co., Ltd.	Other receivables	Yes	307,117 (RMB 70,000)	303,913 (RMB 70,000)	164,469 (RMB 37,882)	2.70	Operating capital	-	Operating capital	-	-	-	42,353,410 (US$ 1,530,109)	42,353,410 (US$ 1,530,109)
6	Jiangyin Walsin Specialty Alloy Materials Co., Ltd.	Walsin (China) Investment Co., Ltd.	Other receivables	Yes	877,478 (RMB 200,000)	868,322 (RMB 200,000)	430,887 (RMB 99,246)	2.70	Operating capital	-	Operating capital	-	-	-	42,353,410 (US$ 1,530,109)	42,353,410 (US$ 1,530,109)

Notes:

According to the financing regulations of Yantai Walsin Stainless Steel Co., Ltd., Changshu Walsin Specialty Steel Co., Ltd. and Jiangyin Walsin Specialty Alloy Materials Co., Ltd., the limit on the amount of financing provided to a single enterprise that holds directly or indirectly 100% of the voting rights of a subsidiary cannot exceed 40% of the parent company’s equity presented in the consolidated financial statements of Walsin Lihwa Corporation.
a. The limit on the amount of financing provided to a single enterprise was as follows:

Walsin (China) Investment Co., Ltd. = $105,883,524 × 40% ＝ $42,353,410 (US$1,530,109)

b. The limit on the amount of financing provided was as follows:

The limit on the amount of financing provided = $105,883,524 × 40% ＝ $42,353,410 (US$1,530,109)

Amounts are stated in thousands of New Taiwan dollars, except those stated in thousands of U.S. dollars.
The currency exchange rates as of December 31, 2021 were as follows: US$ to NT$ = 1:27.68; RMB to NT$ = 1:4.34161; US$ to RMB = 1:6.3757.
89 -

TABLE 1-3

JIN-CHERNG CONSTRUCTION CO. AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, U.S. Dollars and Renminbi)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period	Ending Balance	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss		Collateral	Financing Limit for Each Borrower (Note 1)	Aggregate Financing Limit (Note 1)
													Item	Value
7	Joint Success Enterprises Limited	Walsin (Nanjing) Construction Co., Ltd.	Other receivables	Yes	$ 755,607 (US$ 26,480)	$ 732,966 (US$ 26,480)	$ 732,966 (US$ 26,480)	2.48	Operating capital	$ -	Operating capital	$ -	-	$ -	$ 42,353,410 (US$ 1,530,109)	$ 42,353,410 (US$ 1,530,109)
8	Walsin (Nanjing) Construction Limited	Walsin (China) Investment Co., Ltd.	Other receivables	Yes	2,193,695 (RMB 500,000)	- (RMB -)	- RMB -	-	Operating capital	-	Operating capital	-	-	-	42,353,410 (US$ 1,530,109)	42,353,410 (US$ 1,530,109)

Notes:

According to the financing regulation provided by Joint Success Enterprises Limited and Walsin (Nanjing) Development Co., Ltd., the total limit on the amount of the financing provided to a subsidiary whose equity is 100%-owned, directly or indirectly by the parent company, cannot exceed 40% of the equity of the parent company as presented in the consolidated financial statements of Walsin Lihwa Corporation. The limit on the amount of financing provided to a subsidiary whose equity is less than 100%-owned, directly or indirectly by its parent company, cannot exceed 40% of the parent company’s equity as presented in the parent company’s most current consolidated financial statements. If the financing is a one-time funding, the amount for an individual loan shall not exceed 40 % of the parent company’s net worth in the parent company’s most current consolidated financial statements. If it is a revolving fund, the amount for an individual loan shall not exceed 10 % of the parent company’s net worth in the parent company’s most current consolidated financial statements.
a. The limit on the amount of financing provided to a single enterprise was as follows:

Walsin (Nanjing) Construction Co., Ltd. = $105,883,524 × 40% ＝ $42,353,410 (US$1,530,109)

Walsin (China) Investment Co., Ltd. = $105,883,524 × 40% ＝ $42,353,410 (US$1,530,109)

b. The limit on the amount of financing provided was as follows:

The limit on the amount of financing provided = $105,883,524 × 40% ＝ $42,353,410 (US$1,530,109)

Amounts are stated in thousands of New Taiwan dollars, except those stated in thousands of U.S. dollars and Renminbi.
The currency exchange rates as of December 31, 2021 were as follows: US$ to NT$ = 1:27.68; RMB to NT$ = 1:4.34161; US$ to RMB = 1:6.3757.
90 -

TABLE 1-4

WALSIN INFO-ELECTRIC CORP. AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period	Ending Balance	Actual Amount Borrowed	Interest Rate (%)	Nature of Financing	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss		Collateral	Financing Limit for Each Borrower (Note 1)	Aggregate Financing Limit (Note 1)
													Item	Value
9	Walsin Info-Electric Corp.	Walsin Lihwa Corporation	Other receivables	Yes	$ 130,000	$ 130,000	$ 130,000	0.70	Operating capital	$ -	Operating capital	$ -	-	$ -	$ 134,809	$ 134,809

Notes:

According to the financing regulation provided by Walsin Info-electric Corp. Corporation, the total limit on the amount of the financing provided to a subsidiary whose equity is 100% owned, directly or indirectly by the parent company, cannot exceed 40% of the equity of the parent company as presented in the consolidated financial statements of Walsin Lihwa Corporation. The limit on the amount of financing provided to a subsidiary whose equity is less than 100% owned, directly or indirectly by its parent company, cannot exceed 40% of the parent company’s equity as presented in the parent company’s most current consolidated financial statements. If the financing is a one-time funding, the amount for an individual loan shall not exceed 40% of the parent company’s net worth in the parent company’s most current consolidated financial statements. If it is a revolving fund, the amount for an individual loan shall not exceed 10% of the parent company’s net worth in the parent company’s most current consolidated financial statements.
a. The limit on the amount of financing provided to a single enterprise was as follows:

Walsin Lihwa Corporation = $337,022 × 40% ＝ $134,809

b. The limit on the amount of financing provided was as follows:

The limit on the amount of financing provided = $337,022 × 40% ＝ $134,809

91 -

TABLE 2

WALSIN LIHWA HOLDINGS LIMITED AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars and U.S. Dollars)

No. (Note 1)	Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limits on Endorsement/ Guarantee Given on Behalf of Each Party (Note 3)	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period (Note 4)	Actual Amount Borrowed	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies
		Name	Relationship (Note 2)
0	Walsin Lihwa Corporation	PT. Walsin Nickel Industrial Indonesia	b	$ 12,196,998 (US$ 440,643)	$ 2,491,200 (US$ 90,000)	$ 2,491,200 (US$ 90,000)	$ 1,107,200 (US$ 40,000)	$ -	-	$ 105,883,524	Yes	No	No

Notes:

The information on Walsin Lihwa Corporation and its subsidiaries is listed and labeled on the entitled “No.” column.
a. “0” represents Walsin Lihwa Corporation.
b. Subsidiaries are numbered consecutively starting from 1.
The relationship between Walsin Lihwa Corporation and the endorsed/guaranteed entities can be classified into the following categories
a. A company with which Walsin Lihwa Corporation does business.
b. A company in which Walsin Lihwa Corporation directly and indirectly holds more than 50% of the voting shares.
c. A company that directly and indirectly holds more than 50% of the voting shares in Walsin Lihwa Corporation.
d. A company in which Walsin Lihwa Corporation directly or indirectly holds 90% or more of the voting shares.
e. A company that fulfills Walsin Lihwa Corporation’s contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
f. A company in which all capital contributing shareholders make endorsements/guarantees for it and Walsin Lihwa Corporation’s joint-investment company in proportion to their shareholding percentages.
g. A company in the same industry as Walsin Lihwa Corporation whereby either provides among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.
According to the endorsements/guarantees provided and financing provided by Walsin Lihwa Corporation, the total limit on the amount of endorsements/guarantees cannot exceed 100% of the net value of Walsin Lihwa Corporation’s current parent-company-only financial statements (including the consolidated financial statements). The limit on the amount of endorsements/guarantees provided and financing provided to a single enterprise cannot exceed the net value of the guaranteed company. The limit on the amount of guarantees provided to an investee in which over 66.67% of the common shares are held cannot exceed the amount which is 250% of the net value multiplied by the equity percentage of the guarantee provider; however, the limits mentioned above are not applicable to Walsin Lihwa Corporation’s wholly-owned holding companies incorporated in duty-free areas overseas.
a.
The limit on the amount of endorsements/guarantees provided was as follows:

NT$105,883,524 × 100% ＝ $105,883,524

b. The limit on the amount of endorsements/guarantees provided to a single entity was as follows:
- PT. Walsin Nickel Industrial Indonesia.: US$191,584 × 250% × 92% ＝ US$440,643
The currency exchange rates as of December 31, 2021 were as follows: US$ to NT$ = 1:27.68.
92 -

TABLE 2-1

WALSIN LIHWA HOLDINGS LIMITED AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, U.S. Dollars and Renminbi)

No. (Note 1)	Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limits on Endorsement/ Guarantee Given on Behalf of Each Party (Note 3)	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period (Note 4)	Actual Amount Borrowed	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies
		Name	Relationship (Note 2)
1	Dongguan Walsin Wire & Cable Co., Ltd.	Walsin (China) Investment Co., Ltd.	c	$ 11,128,190 (US$ 402,030)	$ 1,362,361 (RMB 310,579)	$ - (RMB -)	$ - US$ -	$ -	-	$ 105,883,524	No	No	Yes

Notes:

The information on Walsin Lihwa Corporation and its subsidiaries is listed and labeled on the entitled “No.” column.
a. “0” represents Walsin Lihwa Corporation.
b. Subsidiaries are numbered consecutively starting from 1.
The relationship between Walsin Lihwa Corporation and the endorsed/guaranteed entities can be classified into the following categories
a. A company with which Walsin Lihwa Corporation does business.
b. A company in which Walsin Lihwa Corporation directly and indirectly holds more than 50% of the voting shares.
c. A company that directly and indirectly holds more than 50% of the voting shares in Walsin Lihwa Corporation.
d. A company in which Walsin Lihwa Corporation directly or indirectly holds 90% or more of the voting shares.
e. A company that fulfills Walsin Lihwa Corporation’s contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
f. A company in which all capital contributing shareholders make endorsements/guarantees for it and Walsin Lihwa Corporation’s joint-investment company in proportion to their shareholding percentages.
g. A company in the same industry as Walsin Lihwa Corporation whereby either provides among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.
According to the endorsements/guarantees provided and financing provided by Walsin Lihwa Corporation, the total limit on the amount of endorsements/guarantees cannot exceed 100% of the net value of Walsin Lihwa Corporation’s current parent-company-only financial statements (including the consolidated financial statements). The limit on the amount of endorsements/guarantees provided and financing provided to a single enterprise cannot exceed the net value of the guaranteed company. The limit on the amount of guarantees provided to an investee in which over 66.67% of the common shares are held cannot exceed the amount which is 250% of the net value multiplied by the equity percentage of the guarantee provider; however, the limits mentioned above are not applicable to Walsin Lihwa Corporation’s wholly-owned holding companies incorporated in duty-free areas overseas.
a.
The limit on the amount of endorsements/guarantees provided was as follows:

NT$105,883,524 × 100% ＝ $105,883,524

b. The limit on the amount of endorsements/guarantees provided to a single entity was as follows:

Walsin (China) Investment Co., Ltd.: US$160,812 × 250% × 100% ＝ US$402,030

The currency exchange rates as of December 31, 2021 were as follows: US$ to NT$ = 1:27.68; RMB to NT$ = 1:4.34161.
93 -

TABLE 2-2

CONCORD INDUSTRIES LIMITED AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars, U.S. Dollars and Renminbi)

No. (Note 1)	Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limits on Endorsement/ Guarantee Given on Behalf of Each Party (Note 3)	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period (Note 4)	Actual Amount Borrowed	Amount Endorsed/ Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies
		Name	Relationship (Note 2)
2	Jiangyin Walsin Specialty Alloy Materials Co., Ltd.	Walsin (China) Investment Co., Ltd.	d	$ 11,128,190 (US$ 402,030)	$ 1,362,631 (RMB 310,579)	$ - (RMB -)	$ - US$ -	$ -	-	$ 105,883,524	No	No	Yes

Notes:

The information on Walsin Lihwa Corporation and its subsidiaries is listed and labeled on the entitled “No.” column.
a. “0” represents Walsin Lihwa Corporation.
b. Subsidiaries are numbered consecutively starting from 1.
The relationship between Walsin Lihwa Corporation and the endorsed/guaranteed entities can be classified into six categories.
a. A company with which Walsin Lihwa Corporation does business.
b. A company in which Walsin Lihwa Corporation directly and indirectly holds more than 50% of the voting shares.
c. A company that directly and indirectly holds more than 50% of the voting shares in Walsin Lihwa Corporation.
d. A company in which Walsin Lihwa Corporation directly or indirectly holds 90% or more of the voting shares.
e. A company that fulfills Walsin Lihwa Corporation’s contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
f. A company in which all capital contributing shareholders make endorsements/guarantees for it and Walsin Lihwa Corporation’s joint-investment company in proportion to their shareholding percentages.
g. A company in the same industry as Walsin Lihwa Corporation whereby either provides among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.
According to the endorsements/guarantees provided and financing provided by Walsin Lihwa Corporation, the total limit on the amount of endorsements/guarantees cannot exceed 100% of the net value of Walsin Lihwa Corporation’s current parent-company-only financial statements (including the consolidated financial statements). The limit on the amount of endorsements/guarantees provided and financing provided to a single enterprise cannot exceed the net value of the guaranteed company. The limit on the amount of guarantees provided to an investee in which over 66.67% of the common shares are held cannot exceed the amount which is 250% of the net value multiplied by the equity percentage of the guarantee provider; however, the limits mentioned above are not applicable to Walsin Lihwa Corporation’s wholly-owned holding companies incorporated in duty-free areas overseas.
a. The limit on the amount of endorsements/guarantees provided was as follows:

NT$105,883,524 × 100% ＝ NT$105,883,524

b. The limit on the amount of endorsements/guarantees provided to a single entity was as follows:

Walsin (China) Investment Co., Ltd.: US$160,812 × 250% × 100% ＝ US$402,030

The currency exchange rates as of December 31, 2021 were as follows: US$ to NT$ = 1:27.68; RMB to NT$ = 1:4.34161.
94 -

TABLE 3

WALSIN LIHWA CORPORATION

MARKETABLE SECURITIES HELD DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Issuer of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December 31, 2021	December 31, 2021		Note
				Number of Shares/Units	Carrying Amount	Percentage of Ownership (%)	Fair Value
Walsin Lihwa Corporation	Share HannStar Display Corp. HannStar Board Corp. TECO Electric & Machinery Co., Ltd. Kuong Tai Metal Industrial Co., Ltd. Taiwan Submarine Cable Co., Ltd. (formerly known as One-Seven Trading Co., Ltd.) Global Investment Holdings WK Technology Fund Universal Venture Capital Investment Hwa Bao Botanic Conservation Corp. Tung Mung Development Co., Ltd.	The holding company is a director of the issuer company The chairman of the holding company and the chairman of the company are second-class relatives - The holding company is a director of the issuer company The holding company is a director of the issuer company The holding company is a director of the issuer company - - The holding company is a supervisor of the issuer company -	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current	299,632,180 63,753,952 230,438,730 9,631,802 30,000 5,221,228 19,024 1,400,000 3,000,000 14,285,000	$ 5,423,342 2,894,429 7,293,386 276,509 149 60,283 187 12,650 28,596 149,993	9.90 12.06 10.77 9.39 6.67 2.97 1.91 1.16 15.00 4.01	$ 5,423,342 2,894,429 7,293,386 276,509 149 60,283 187 12,650 28,596 149,993

95 -

TABLE 3-1

CONCORD INDUSTRIES CONSTRUCTION CO. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD DECEMBER 31, 2021 (In Thousands of Renminbi)

Holding Company Name	Type and Name of Issuer of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December 31, 2021	December 31, 2021		Note
				Number of Shares/Units	Carrying Amount	Percentage of Ownership (%)	Fair Value
XiAn Lv Jing Technology Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd.	Certification of capital verification Shaanxi Tianhong Silicon Industrial Corporation Certification of capital verification Shaanxi Electronic Group Optoelectronics Technology Co., Ltd.	- -	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current	N/A N/A	$ - 17,240	19.00 6.02	$ - 17,240

96 -

TABLE 3-2

JIN-CHERNG CONSTRUCTION CO. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Issuer of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December 31, 2021	December 31, 2021		Note
				Number of Shares/Units	Carrying Amount	Percentage of Ownership (%)	Fair Value
Jin-Cherng Construction Co.	Share Gsharp Corporation	-	Financial assets at fair value through other comprehensive income - non-current	270,000	$ -	2.73	$ -

97 -

TABLE 3-3

WALSIN INFO-ELECTRIC CORP. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Issuer of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December 31, 2021	December 31, 2021		Note
				Number of Shares/Units	Carrying Amount	Percentage of Ownership (%)	Fair Value
Walsin Info-Electric Corp.	Share W T International Inc. Ufi Space Co., Ltd. Global PMX Co., Ltd. Landing AI	- - - -	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current	228,000 297,069 88,000 265,583	$ 2,568 29,822 15,928 27,894	5.43 1.07 0.08 0.54	$ 2,568 29,822 15,928 27,894

98 -

TABLE 4

WALSIN LIHWA CORPORATION

MARKETABLE SECURITIES ACQUIRED OR DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

Company Name	Type and Name of Marketable Securities	Financial Statement Account	Purpose of Transaction	Relationship	Beginning Balance	Beginning Balance	Acquisition	Acquisition		Disposal	Disposal		Ending	Balance
					Number of Shares	Amount	Number of Shares	Amount	Number of Shares	Amount	Carrying Amount	Gain (Loss) on Disposal	Number of Shares	Amount
Walsin Lihwa Corporation	Share Concord Industries Limited Walsin Precision Technology Corp. New Hono Investment Pte. Ltd TECO Electric & Machinery Corp.	Investments accounted for using the equity method Investments accounted for using the equity method Investments accounted for using the equity method Financial assets at fair value through profit or loss	Capital investment/ capital reduction Concord Industries Limited Capital investment Capital investment	Subsidiaries Subsidiaries Subsidiaries -	285,903,187 - - 954,000	$ 4,631,181 - - 26,378	47,000,000 32,178,385 42,000,000 229,484,730	$ 1,156,955 (Note 1) 447,963 (Note 2) 5,828,396 (Note 2) 7,267,008 (Note 3)	15,398,007 - - -	$ 434,994 - - -	$ 434,994 - - -	$ - - - -	317,505,180 32,178,385 42,000,000 230,438,730	$ 5,353,142 447,963 5,828,396 7,293,386

Note 1: The amount included subscription for shares, investment income or loss and changes in other equity.

Note 2: The amount included the purchase amount, investment income or loss and changes in other equity.

Note 3: The amount included issuance of new shares in exchange for the shares of another company and adjustments through fair value.

99 -

TABLE 4-1

WALSIN LIHWA HOLDINGS LIMITED AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED OR DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of Renminbi)

Company Name	Type and Name of Marketable Securities	Financial Statement Account	Counterparty	Relationship	Beginning Balance	Beginning Balance	Acquisition	Acquisition		Disposal	Disposal		Ending	Balance
					Number of Shares	Amount	Number of Shares	Amount	Number of Shares	Amount	Carrying Amount	Gain (Loss) on Disposal	Number of Shares	Amount
Walsin Lihwa Holdings Limited Walsin (China) Investment Co., Ltd.	Share Walsin International Investments Limited Certificate of capital verification Fubon Bank (China) RMB structured deposits	Investments accounted for using the equity method Financial assets at amortized cost	Capital investment Fubon Bank	Subsidiary -	4,303,960,202 N/A	$ 3,874,450 300,000	349,411,500 N/A	$ 342,076 (Note) 1,500,000	- N/A	$ - 1,805,457	$ - 1,800,000	$ - 5,457	4,653,371,702 N/A	$ 4,216,526 -

Note: The amount included subscription for shares and investment income or loss.

100 -

TABLE 4-2

CONCORD INDUSTRIES LIMITED AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED OR DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of Renminbi)

Company Name	Type and Name of Marketable Securities	Financial Statement Account	Counterparty	Relationship	Beginning Balance	Beginning Balance	Acquisition	Acquisition		Disposal	Disposal		Ending	Balance
					Number of Shares	Amount	Number of Shares	Amount	Number of Shares	Amount	Carrying Amount	Gain (Loss) on Disposal	Number of Shares	Amount
Concord Industries Limited	Share Walsin Precision Technology Corp.	Investments accounted for using the equity method	Walsin Lihwa Corporation	Subsidiaries	32,178,385	$ 168,042	-	$ -	32,178,385	$ 99,848	$ 123,750 (Note 1)	$ (23,902) (Note 2)	-	$ -

Note 1: The amount included investment income or loss, distribution of dividends from the capital surplus and cumulative translation adjustments.

Note 2: Loss on disposal is unrealized in the consolidated report.

101 -

TABLE 5

WALSIN LIHWA CORPORATION

ACQUISITION OF INDIVIDUAL REAL ESTATE AT COSTS OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Company Name	Types of Property	Transaction Date	Transaction Amount (Foreign Currencies in Thousands)	Payment Term	Counterparty	Nature of Relationships	Prior Transaction of	Prior Transaction of	Related Counterparty	Related Counterparty	Price Reference	Purpose of Acquisition	Other Terms
							Owner	Relationships	Transfer Date	Amount
Walsin Lihwa Corporation	Plant	2021/08/19- 2021/12/23	$ 521,333	Based on the terms in the contract	Chung-Lu Construction Co., Ltd.	-	N/A	N/A	N/A	N/A	Based on the marketability	Manufacturing and operating purpose	-

102 -

TABLE 5-1

CONCORD INDUSTRIES LIMITED AND SUBSIDIARIES

ACQUISITION OF INDIVIDUAL REAL ESTATE AT COSTS OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of Renminbi)

Company Name	Types of Property	Transaction Date	Transaction Amount (Foreign Currencies in Thousands)	Payment Term	Counterparty	Nature of Relationships	Prior Transaction of	Prior Transaction of	Related Counterparty	Related Counterparty	Price Reference	Purpose of Acquisition	Other Terms
							Owner	Relationships	Transfer Date	Amount
Yantai Walsin Stainless Steel Co., Ltd.	Plant	2021/07/12- 2021/09/14	$ 89,064	Based on the terms in the contract	China Construction Eighth Engineering Division. Co., Ltd.	-	N/A	N/A	N/A	N/A	Based on the marketability	Manufacturing and operating purpose	-

103 -

TABLE 6

WALSIN LIHWA CORPORATION

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship		Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts Receivable (Payable)	Notes/Accounts Receivable (Payable)	Note
			Purchase/ Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
Walsin Lihwa Corporation	Dongguan Walsin Wire & Cable Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Koung Tai Metal Industrial Co., Ltd. Changshu Walsin Specialty Steel Co., Ltd.	100% indirectly owned subsidiary 100% indirectly owned subsidiary Director of the related party 100% indirectly owned subsidiary	Sales Sales Sales Sales	$ (2,273,189) (668,583) (1,743,620) (595,996)	(2) (1) (2) (1)	The payment terms are set by quotations on the local market, and the transaction terms are similar to those of general customers. The payment terms are set by quotations on the local market, and the transaction terms are similar to those of general customers. The payment terms are set by quotations on the local market, and the transaction terms are similar to those of general customers. The payment terms are set by quotations on the local market, and the transaction terms are similar to those of general customers.	Normal Normal Normal Similar	Normal Normal Normal Similar	$ 81,510 245,996 17,229 281,518	2 5 - 5

104 -

TABLE 6-1

WALSIN LIHWA HOLDINGS LIMITED AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars and Renminbi)

Company Name	Related Party	Nature of Relationship		Transaction Details	Transaction Details		Abnormal Transaction	Abnormal Transaction	Notes/Accounts Payable or Receivable	Notes/Accounts Payable or Receivable	Note
			Purchase/ Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
Dongguan Walsin Wire & Cable Co., Ltd. Shanghai Walsin Lihwa Power Wire & Cable Co., Ltd.	Walsin Lihwa Corporation Shanghai Walsin Lihwa Power Wire & Cable Co., Ltd. Dongguan Walsin Wire & Cable Co., Ltd.	Parent company Both subsidiaries of Walsin Lihwa Corporation Both subsidiaries of Walsin Lihwa Corporation	Purchases Sales Purchases	$ 2,273,189 RMB (49,712) RMB 49,712	12 (1) 6	Normal Normal Normal	Normal Normal Normal	Normal Normal Normal	$ (81,510) RMB 14,014 RMB (14,014)	(27) 10 (7)

105 -

TABLE 6-2

CONCORD INDUSTRIES LIMITED AND SUBSIDIARIES

TOTAL PURCHASES FROM OR SALES TO RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars and Renminbi)

Company Name	Related Party	Nature of Relationship			Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts Payable or Receivable	Notes/Accounts Payable or Receivable	Note
			Purchase/ Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
Yantai Walsin Stainless Steel Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Changshu Walsin Specialty Steel Co., Ltd.	Changshu Walsin Specialty Steel Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Changshu Walsin Specialty Steel Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Yantai Walsin Stainless Steel Co., Ltd. Walsin Lihwa Corporation Yantai Walsin Stainless Steel Co., Ltd. Yantai Walsin Stainless Steel Co., Ltd. Walsin Lihwa Corporation Yantai Walsin Stainless Steel Co., Ltd.	Both subsidiaries of Concord Industries Limited Both subsidiaries of Concord Industries Limited Both subsidiaries of Concord Industries Limited Both subsidiaries of Concord Industries Limited Both subsidiaries of Concord Industries Limited Parent company Both subsidiaries of Concord Industries Limited Both subsidiaries of Concord Industries Limited Parent company Both subsidiaries of Concord Industries Limited	Sales Sales Purchases Purchases Sales Purchases Purchases Sales Purchases Purchases	RMB (242,772) RMB (233,251) RMB 32,926 RMB 40,500 RMB (40,500) 668,583 RMB 233,251 RMB (32,926) 595,996 RMB 242,772	(11) (11) 2 2 (10) 37 57 (5) 25 44	The payment terms are set by quotations on the local market, and the transaction terms are similar to those of general customers. The payment terms are set by quotations on the local market, and the transaction terms are similar to those of general customers. The payment terms are set by quotations on the local market, and the transaction terms are similar to those of general customers. The payment terms are set by quotations on the local market, and the transaction terms are similar to those of general customers. The payment terms are set by quotations on the local market, and the transaction terms are similar to those of general customers. The payment terms are set by quotations on the local market, and the transaction terms are similar to those of general customers. The payment terms are set by quotations on the local market, and the transaction terms are similar to those of general customers. The payment terms are set by quotations on the local market, and the transaction terms are similar to those of general customers. The payment terms are set by quotations on the local market, and the transaction terms are similar to those of general customers. The payment terms are set by quotations on the local market, and the transaction terms are similar to those of general customers.	Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal	Normal Normal Normal Normal Normal Normal Normal Normal Normal Normal	RMB 27,331 RMB 6,386 RMB (5,739) RMB (1,213) RMB 1,213 (245,996) RMB (6,386) RMB 5,739 (281,518) RMB (27,331)	6 1 (2) - 1 (76) (9) 4 (32) (14)

106 -

TABLE 7

WALSIN LIHWA CORPORATION

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Financial Statement Account and Ending Balance	Turnover Rate	Overdue	Overdue	Amount Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Action Taken
Walsin Lihwa Corporation	Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Changshu Walsin Specialty Steel Co., Ltd.	100% indirectly owned subsidiary 100% indirectly owned subsidiary	Trade receivables $ 245,996 Trade receivables 281,518	3.87 4.12	$ - -	- -	$ 99,789 194,308	$ - -

107 -

TABLE 7-1

WALSIN LIHWA HOLDINGS LIMITED AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2021

(In Thousands of Renminbi and U.S. Dollars)

Company Name	Related Party	Nature of Relationship	Financial Statement Account and Ending Balance	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period	Allowance for Bad Debts
					Amount	Action Taken
Walsin Lihwa Holdings Limited Walsin (China) Investment Co., Ltd. Walsin International Investments Limited Dongguan Walsin Wire & Cable Co., Ltd. Shanghai Walsin Lihwa Power Wire & Cable Co., Ltd.	Walsin (China) Investment Co., Ltd. Walsin Lihwa Holdings Limited Yantai Walsin Stainless Steel Co., Ltd. Changshu Walsin Specialty Steel Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Jiangyin Walsin Steel Cable Co., Ltd. Shanghai Walsin Lihwa Power Wire & Cable Co., Ltd. Walsin (Nanjing) Development Co., Ltd. Hangzhou Walsin Power Cable & Wire Co., Ltd. XiAn Walsin Metal Product Co., Ltd. Nanjing Taiwan Trade Mart Management Co., Ltd. Dongguan Walsin Wire & Cable Co., Ltd. PT. Walsin Nickel Industrial Indonesia Walsin (China) Investment Co., Ltd. Walsin (China) Investment Co., Ltd. Walsin (China) Investment Co., Ltd.	100% owned subsidiary Parent company Both subsidiaries of Walsin Lihwa Corporation Both subsidiaries of Walsin Lihwa Corporation 18.37% owned subsidiary 100% owned subsidiary 95.71% directly owned subsidiary Both subsidiaries of Walsin Lihwa Corporation Associate Both subsidiaries of Walsin Lihwa Corporation Both subsidiaries of Walsin Lihwa Corporation 100% owned subsidiary Both subsidiaries of Walsin Lihwa Corporation Both subsidiaries of Walsin Lihwa Corporation Parent company Parent company	Other receivables RMB 261,794 Other receivables US$ 4,900 Other receivables US$ 60,175 RMB 363,643 Other receivables US$ 55,825 Other receivables US$ 44,636 Other receivables US$ 8,717 RMB 214,155 Other receivables US$ 8,955 Other receivables RMB 698,586 Other receivables RMB 81,228 Other receivables RMB 176,213 Other receivables RMB 37,250 Other receivables US$ 68,544 Other receivables RMB 1,596,871 Other receivables RMB 2,558,656 Other receivables RMB 553,394 Other receivables RMB 83,540	- - - - - - - - - - - - - - - -	$ - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - -	$ - - - - - - - - - - - - - - - -	$ - - - - - - - - - - - - - - - -

Note: Amounts are stated in thousands of Renminbi, except those stated in thousands of U.S. dollars.

108 -

TABLE 7-2

CONCORD INDUSTRIES LIMITED AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2021

(In Thousands of Renminbi)

Company Name	Related Party	Nature of Relationship	Financial Statement Account and Ending Balance	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period	Allowance for Bad Debts
					Amount	Action Taken
Yantai Walsin Stainless Steel Co., Ltd. Changshu Walsin Specialty Steel Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd.	Changshu Walsin Specialty Steel Co., Ltd. Walsin (China) Investment Co., Ltd. Walsin (China) Investment Co., Ltd.	Both are subsidiaries of Concord Industries Limited Both are subsidiaries of Walsin Lihwa Corporation Both are subsidiaries of Walsin Lihwa Corporation	Trade receivables $ 27,331 Other receivables 37,911 Other receivables 99,473	8.07 - -	$ - - -	- - -	$ - - -	$ - - -

109 -

TABLE 7-3

JIN-CHERNG CONSTRUCTION CO. AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2021

(In Thousands of Renminbi)

Company Name	Related Party	Relationship	Financial Statement Account and Ending Balance	Turnover Rate	Overdue	Overdue	Amount Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Action Taken
Joint Success Enterprises Limited	Walsin (Nanjing) Construction Co., Ltd.	Subsidiary	Other receivables $ 177,412	-	$ -	-	$ -	$ -

110 -

TABLE 8

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

NAMES, LOCATIONS, AND RELATED INFORMATION OF INVESTEES OVER WHICH THE GROUP EXERCISES SIGNIFICANT INFLUENCE FOR THE YEAR ENDED DECEMBER 31, 2021

Information of investees that Walsin Lihwa Corporation has controlling power or significant influence over was as follows (in thousands of New Taiwan dollars):

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance a	s of December 31, 2021	s of December 31, 2021	Net Income (Loss) of the Investee	Investment Gain (Loss)	Note
				December 31, 2021	December 31, 2020	Number of Shares	Percentage of Ownership (%)	Carrying Amount
Walsin Lihwa Corporation	Walsin Lihwa Holdings Limited Concord Industries Limited Ace Result Global Limited Min Maw Precision Industry Corp. Waltuo Green Resources Corporation Walsin Precision Technology Corp. New Hono Investment Pte. Ltd Jin-Cherng Construction Co. Walsin Info-Electric Corp. PT. Walsin Lippo Industries PT. Walsin Lippo Kabel PT. Walsin Nickel Industrial Indonesia Joint Success Enterprises Limited Chin-Xin Investment Co., Ltd. Walsin Color Co., Ltd. Concord II Venture Capital Co., Ltd. Winbond Electronics Corp. Walton Advanced Engineering, Inc.	Vistra Corporate Services Centre Wickhams Cay II, Road Town, Tortola, VG1110 British Virgin Islands Vistra Corporate Services Centre Wickhams Cay II, Road Town, Tortola, VG1110 British Virgin Islands Vistra Corporate Services Centre Wickhams Cay II, Road Town, Tortola, VG1110 British Virgin Islands 25F., No. 1, Songzhi Rd., Xinyi Dist., Taipei City, Taiwan, R.O.C. No. 47, Bade Rd., Yanshui District, Tainan City 73743, Taiwan, R.O.C. 2115-1,Kawasan Perindustrian air Keroh, Fasa IV, Air Keroh, 75450 Melaka, Malaysia 2 Battery Road, #27-01, Maybank Tower, Singapore 049907 5th Floor, 192 Jingye 1st Road, Jhongshan District, Taipei 104, Taiwan, R.O.C. 25F., No. 1, Songzhi Rd., Xinyi Dist., Taipei City, Taiwan, R.O.C. JI. MH. Thamrin Block A1-1, Delta Silicon Industrial Park, Lippo Cikarang, Bekasi 17550, Indonesia JI. Jati 3 Blok J7/5, Newton Techno Park, Serang, Cikarang Selatan, Bekasi, Jawa Barat Gedung Wisma Mulia LT. 41 JL Jend Gatot Subroto NO. 42 Kuningan Barat Mmpang Prapatan Kota ADM. Jakarta Selatan Dki Jakarta Vistra Corporate Services Centre Wickhams Cay II, Road Town, Tortola, VG1110 British Virgin Islands 26F., No. 1, Songzhi Rd., Xinyi Dist., Taipei City, Taiwan, R.O.C. 24F., No. 1, Songzhi Rd., Xinyi Dist., Taipei City, Taiwan, R.O.C. 4F., No. 76, Sec. 2, Dunhua S. Rd., Da’an Dist., Taipei City 106,, R.O.C. No. 8, Keya 1st Rd., Daya Township, Taichung County 428, Taiwan, R.O.C. No. 18, Yugang N. 1st Rd., Qianzhen Dist., Kaohsiung City 806, Taiwan, R.O.C.	Investments Investments Investments Solar power systems management, design, and installation Waste disposal, resource recovery and cement products Production and sale of stainless steel plates Investments Construction Mechanical and electrical, communications, and power systems Steel wires Production and sale of cables and wires Production and sale of nickel pig iron Investments Investments Management of investments and conglomerates Venture capital and consulting affairs Research, development, production and sale of semiconductors and related components Production, sale, and testing of semiconductors	$ 14,495,777 13,611,135 1,587,416 180,368 10,000 434,994 5,003,810 611,688 270,034 481,663 11,656 1,509,171 1,164,273 2,237,969 457,610 257,860 7,429,920 1,185,854	$ 14,760,298 12,724,589 1,587,416 180,368 10,000 - - 611,688 270,034 481,663 11,656 1,509,171 1,164,273 2,237,969 457,610 257,860 7,429,920 1,185,854	473,730,393 317,505,180 44,739,988 29,995,859 1,000,000 32,178,385 42,000,000 577,583,403 29,854,246 10,500 1,050,000 500,000 36,058,184 179,468,270 49,831,505 26,670,699 883,848,423 109,628,376	100.00 100.00 100.00 100.00 100.00 100.00 100.00 99.22 99.51 70.00 70.00 50.00 49.05 37.00 33.97 26.67 22.21 21.01	$ 26,803,960 5,353,142 383,632 365,703 19,203 447,963 5,828,396 6,348,728 335,371 818,205 12,690 2,381,125 5,175,692 8,011,194 1,053,790 174,332 18,357,864 2,322,664	$ 1,081,312 (162,677) 46,062 31,059 10,366 47,066 953,732 (108,838) (4,767) 90,143 5,705 2,598,802 (237,201) 528,594 (17,475) (16,822) 13,594,643 219,897	$ 1,081,391 (58,882) 46,062 31,059 10,366 30,256 849,748 (108,129) (4,744) 63,100 3,994 1,128,008 (115,394) 195,580 (5,936) (4,486) 2,984,304 46,403	(Note 1)

(Continued)

111 -

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance a	s of December 31, 2021	s of December 31, 2021	Net Income (Loss) of the Investee	Investment Gain (Loss)	Note
				December 31, 2021	December 31, 2020	Number of Shares	Percentage of Ownership (%)	Carrying Amount
Walsin Lihwa Holding Limited Concord Industries Limited Jin-Cherng Construction Co. New Hono Investment Pte. Ltd.	Walsin Technology Corp. Powertec Electrochemical Corp.’s Walsin International Investments Limited Walcom Chemicals Industrial Limited Borrego Solar Systems, Inc. Walsin Specialty Steel Corp. Walsin Precision Technology Sdn. Bhd. Joint Success Enterprises Limited Dinghsin Development Co., Ltd. Concord II Venture Capital Co., Ltd. Chin-Xin Investment Co., Ltd. PT. Walsin Nickel Industrial Indonesia	24F., No. 1, Songzhi Rd., Xinyi Dist., Taipei City, Taiwan, R.O.C. 13 F, No. 337, Fuxing N. Rd., Songshan Dist., Taipei City 105, Taiwan, R.O.C. Unit 9-15, 22/F, Millennium City, 378 Kwun Tong Road, Kwun Tong, Kowloon, Hong Kong Unit 714,7/F, Miramat Tower, 1-23 Kimberley Road, Tsimshatsui, Kowloon, Hong Kong 6210 Lake Shore Drive, San Diego, CA92119, USA Vistra Corporate Services Centre Wickhams Cay II, Road Town, Tortola, VG1110, BVI 2115-1, Kawasan Perindustrian air Keroh, Fasaiv, Air Keroh, 75450 Melaka, Malaysia Vistra Corporate Services Centre Wickhams Cay II, Road Town, Tortola, VG1110, BVI 5th Floor, 192 Jingye 1st Road, Jhongshan District, Taipei 104, Taiwan, R.O.C. 4F., No. 76, Sec. 2, Dunhua S. Rd., Da’an Dist., Taipei City 106, Taiwan (R.O.C.) 26F., No. 1, Songzhi Rd., Xinyi Dist., Taipei City, Taiwan, R.O.C. Gedung Wisma Mulia LT. 41 JL Jend Gatot Subroto NO. 42 Kuningan Barat Mmpang Prapatan Kota ADM. Jakarta Selatan Dki Jakarta	Production and sale of ceramic capacitors Basic industrial chemical manufacturing and energy technical services Investments Commerce Grid-connected solar electric systems Commerce and investments Production and sale of stainless steel plates Investments Investment of real estate and related business Venture capital and consulting affairs Investments Production and sale of nickel pig iron	$ 1,649,039 2,945,925 HK$ 4,653,372 US$ 0.030 US$ 15,000 US$ 101,400 (Note 2) US$ - 1,202,993 8,540 1,603 54,154 US$ 42,000	$ 1,649,039 2,945,925 HK$ 4,303,960 US$ 0.030 US$ 15,000 US$ 101,400 (Note 2) US$ 8,470 1,202,993 8,540 1,603 54,154 US$ -	88,902,325 318,522,792 4,653,371,702 325,000 1,460,458 101,400,000 - 37,461,816 2,119,200 172,342 3,264,092 42,000	18.30 22.46 100.00 65.00 73.49 100.00 - 50.95 35.32 0.17 0.67 42.00	$ 8,166,415 - 18,306,511 0.829 3,420,689 1,016,241 - 5,273,922 39,427 1,127 146,794 2,227,285	$ 7,931,941 - 222,439 - 875,401 51,770 47,066 (237,201) 5,282 (16,822) 528,594 2,598,802	$ 1,450,358 - 222,439 - 639,533 51,770 16,810 (120,854) 1,866 (72) 3,546 953,791	(Note 3)

Note 1: Due to adjustments in the investment structure of the Group, it was transferred from Concord Industries Limited to Walsin Lihwa Corporation.

Note 2: The amount included capitalization of retained earnings of US$4,500 thousand.

Note 3: Due to adjustments in the investment structure of the Group, it was transferred from Concord Industries Limited to Walsin Lihwa Corporation.

Note 4: Amounts are stated in thousands of Renminbi, except those stated in thousands of U.S. dollars and Hong Kong dollars.

(Continued)

112 -

TABLE 9

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, U.S. Dollars and Renminbi)

A. Walsin Lihwa Corporation

The names of investee companies in mainland China, their main businesses and products, total amount of paid-in capital, investment type, investment flows, percentage of ownership in investment, investment gain or loss, carrying amount, accumulated inward remittance of earnings and upper limit on investment in mainland China were as follows:

Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital	Investment Type (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of the Investee	Percentage of Ownership in Investment (%)	Investment Gain (Loss) (Note 16)	Carrying Amount as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
Jiangyin Walsin Steel Cable Co., Ltd. Shanghai Walsin Lihwa Power Wire & Cable Co., Ltd. Hangzhou Walsin Power Cable & Wire Co., Ltd. Walsin (China) Investment Co., Ltd. Changshu Walsin Specialty Steel Co., Ltd. Shanghai Baihe Walsin Lihwa Specialty Steel Co., Ltd. Dongguan Walsin Wire & Cable Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd. XiAn Walsin Metal Product Co., Ltd. (Note 13) Yantai Walsin Stainless Steel Co., Ltd.	Manufacture and sale of steel cables and wires Manufacture and sale of cables and wires Manufacture and sale of cables and wires Investments Manufacture and sale of specialized steel tubes Manufacture and sale of stainless steel Manufacture and sale of bare copper cables and wires Manufacture and sale of cold-rolled stainless steel and flat rolled products Manufacture and sale of specialized stainless steel plates Production and sale of electronic components and new alloy materials	$ 553,600 (US$ 20,000) 432,555 (US$ 15,627) 4,929,254 (US$ 178,080) 2,175,648 (US$ 78,600) 2,684,960 (US$ 97,000) 470,560 (US$ 17,000) (Note 7) 719,680 (US$ 26,000) 1,356,320 (US$ 49,000) 1,532,088 (US$ 55,350) 9,274,599 (US$ 335,065) (Note 11)	b b b b b b b b b b	$ 720,815 (US$ 26,041) (Note 2) 413,982 (US$ 14,956) (Note 3) 2,335,638 (US$ 84,380) (Note 4) 2,175,648 (US$ 78,600) (Note 5) 2,684,960 (US$ 97,000) (Note 6) 1,079,520 (US$ 39,000) (Note 8) 719,680 (US$ 26,000) (Note 9) 1,356,320 (US$ 49,000) (Note 10) 834,552 (US$ 30,150) 3,679,419 (US$ 132,927)	$ - - - - - - - - - - - - - - - - - - 2,214,400 (US$ 80,000)	$ - - - - - - - - - - - - - - - - - - - -	$ 720,815 (US$ 26,041) (Note 2) 413,982 (US$ 14,956) (Note 3) 2,335,638 (US$ 84,380) (Note 4) 2,175,648 (US$ 78,600) (Note 5) 2,684,960 (US$ 97,000) (Note 6) 1,079,520 (US$ 39,000) (Note 8) 719,680 (US$ 26,000) (Note 9) 1,356,320 (US$ 49,000) (Note 10) 834,552 (US$ 30,150) 5,893,819 (US$ 212,927)	$ 84,065 124,098 188,273 217,722 39,607 13,217 7,337 (1,462) (14,119) (260,618)	100.00 95.71 40.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00	$ 84,065 118,774 73,296 217,722 39,607 13,217 7,337 (1,462) (14,119) (260,618)	$ 871,873 1,153,271 622,240 4,451,409 700,497 233,101 1,651,531 1,981,997 (766,837) 4,705,064	$ - - - - - - - - - -
												(Continued)

113 -

Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital	Investment Type (Note 1)	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of the Investee	Percentage of Ownership in Investment (%)	Investment Gain (Loss) (Note 16)	Carrying Amount as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
Changzhou China Steel Precision Materials Co., Ltd. Nanjing Taiwan Trade Mart Management Co., Ltd. Shaanxi Tianhong Silicon Industrial Corporation Jiangsu Taiwan Trade Mart Development Co., Ltd. Shaanxi Electronic Group Optoelectronics Technology Co., Ltd. (Note 14) Walsin (Nanjing) Development Co., Ltd. Nanjing Walsin Property Management Co., Ltd. Walsin Nanjing Culture and Arts Co., Ltd.	Melting and forging of nonferrous metallic materials and composites as well as new types of alloys Business and asset management, consulting and advertising services Polysilicon production Development and management of Nanjing Taiwan Trade Mart Management Co., Ltd. Communications equipment and electronic components Construction, rental and sale of buildings and industrial factories Property management, business management and housing leasing Organize culture and arts communication activity, cultural performance, culture and arts forwarding agency	$ 1,206,848 (US$ 43,600) 27,680 (US$ 1,000) 5,209,932 (RMB 1,200,000) 43,416 (RMB 10,000) 675,541 (RMB 155,597) 1,384,000 (US$ 50,000) 4,342 (RMB 1,000) 6,512 (RMB 1,500)	b b b b b b b b	$ 362,054 (US$ 13,080) 27,680 (US$ 1,000) - (US$ -) 8,415 (US$ 304) - (RMB -) 1,378,464 (US$ 49,800) (Note 15) - (RMB -) - (RMB -)	$ - - - - - - - - - - - - - - - -	$ - - - - - - - - - - - - - - - -	$ 362,054 (US$ 13,080) 27,680 (US$ 1,000) - (US$ -) 8,415 (US$ 304) - (RMB -) 1,378,464 (US$ 49,800) (Note 15) - (RMB -) - (RMB -)	$ 210,875 15,963 (1,132,244) 456 11,768 (234,792) (6,073) 8,676	30.00 100.00 19.00 20.00 6.02 99.60 99.60 99.60	$ 63,264 15,963 - 91 - (233,859) (6,049) 8,643	$ 441,125 (414,815) - (Note 12) 9,326 74,849 9,607,206 (5,206) -	$ 844,794 (US$ 30,520) - - - - - - -

The upper limit on investment of WLC in mainland China was as follows:

Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2021 (NT$ and US$ in Thousands)	Investment Amounts Authorized by the Investment Commission, MOEA (NT$ and US$ in Thousands)	Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA (NT$ in Thousands)
$ 17,817,284 (US$ 643,688)	$ 17,646,969 (US$ 637,535)	N/A (Note 19)

(Continued)

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Notes:

Investments can be classified into the following three categories:
a. Direct investment in mainland China.
b. Reinvestment in mainland China through companies in a third country. c. Others.
Including US$15,000 thousand investment through Walsin (China) Investment Co., Ltd.
Including US$14,950 thousand investment through Walsin (China) Investment Co., Ltd.
Including US$13,300 thousand investment through Walsin (China) Investment Co., Ltd., US$53,000 thousand investment through Ace Result Global Ltd. and US$22,730 thousand dividends appropriated from Dongguan Walsin Wire & Cable Co., Ltd., Jiangying Walsin Steel Cable Co., Ltd., Shanghai Walsin Lihwa Power Wire & Cable Co., Ltd. and Hangzhou Walsin Power Cable & Wire Co., Ltd.
Capital investment of US$28,600 thousand was contributed from the accounts payable of Walsin (China) Investment Co., Ltd. to Walsin Lihwa Holdings Limited.
Including US$20,000 thousand investment through Walsin Specialty Steel Corp. and US$42,000 thousand dividends appropriated from Changshu Walsin Specialty Steel Co., Ltd. and Shanghai Baihe Walsin Lihwa Specialty Steel Co., Ltd.
Inclusive of capital reduction to cover accumulated deficits US$22,000 thousand.
Including US$4,800 thousand investment through Walsin (China) Investment.
Investment through Walsin (China) Investment Co., Ltd.
Including investments through Walsin (China) Investment Co., Ltd. of US$4,500 thousand and US$4,500 thousand of the own capital of Walsin (China) Investment Co., Ltd.
Including investments of its own capital of RMB578,796 thousand from Shanghai Baihe Walsin Lihwa Specialty Steel Co., Ltd., Changzhou Wujin NSL Co., Ltd. and Changshu Walsin Specialty Steel Co., Ltd. and RMB3,750 thousand made through Changzhou Wujin NSL Co., Ltd. Including US$32,927 thousand investment through Yantai Huanghai Iron and Steel Co., Ltd. and Yantai Dazhong Recycling Resource Co., Ltd. which were merged.
The amount was adjusted by the capital of XiAn Lv Jing Technology Co., Ltd. of RMB228,000 thousand and by the fair value.
XiAn Walsin Metal Product Co., Ltd. merged XiAn Lv Jing Technology Co., Ltd. and XiAn Walsin Opto-electronic Limited.
Shaanxi Electronic Group Optoelectronics Technology Co., Ltd. was formerly known as Shaanxi Optoelectronics Technology Co., Ltd.
The amount included investment through Joint Success Enterprise Limited approved in the previous years.
Amounts are stated in thousands of New Taiwan dollars, except those stated in thousands of U.S. dollars and Renminbi.
The currency exchange rates as of December 31, 2021 were as follows: US$ to NT$ = 1:27.68, RMB to NT$ = 1:4.34161. The average exchange rates of December 31, 2021 were as follows: US$ to NT$ = 1:27.976, RMB to NT$ = 1:4.33908.
Amount was recognized based on audited financial statements.
Upper limit on investment:

WLC was approved as the operation headquarter by the Industrial Development Bureau, Ministry of Economic Affairs and is thus exempted from the related regulations of “Regulations Governing the Approval of Investment or Technical Cooperation in Mainland China”.

(Continued)

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B. Jin-Cherng Construction Co.

The names of investee companies in mainland China, their main businesses and products, total amount of paid-in capital, investment type, investment flows, percentage of ownership in investment, investment gain or loss, carrying amount, accumulated inward remittance of earnings and upper limit on investment in mainland China were as follows:

(In Thousands of U.S. and Renminbi)

Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital	Investment Type	Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Investment Flows	Investment Flows	Accumulated Outflow of Investment from Taiwan as of December 31, 2021	Net Income (Loss) of the Investee	Percentage of Ownership in Investment (%)	Investment Gain (Loss) (Note 2)	Carrying Amount as of December 31, 2021	Accumulated Inward Remittance of Earnings as of December 31, 2021
					Outflow	Inflow
Walsin (Nanjing) Development Co., Ltd. Nanjing Walsin Property Management Co., Ltd. Walsin Nanjing Culture and Arts Co., Ltd.	Construction, rental and sale of buildings and industrial factories Property management, business management and housing leasing Organize culture and arts communication activity, cultural performance, culture and arts forwarding agency	US$ 50,000 1,000 1,500	Note 1 Note 1 Note 1	US$ 25,475 - -	$ - - -	$ - - -	US$ 25,475 - -	$ (54,111) (1,400) 1,999	50.95 50.95 50.95	$ (27,570) (713) 1,019	$ 1,131,931 (613) -	$ - - -

The upper limit on investment in mainland China

Accumulated Outward Remittance for Mainland China as of December 31, 2021 (US$ in Thousands)	Investment Amounts Authorized by the Investment Commission, MOEA (US$ in Thousands)	Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA (NT$ in Thousands)
US$25,475	US$25,475	NT$3,839,173 (Note 3)

Note 1: Investing in companies in mainland China through the companies already established and existing in the areas other than Taiwan and mainland China.

Note 2: Amount was recognized based on audited financial statements.

Note 3: The upper limit on investment in mainland China was as follows:

NT$6,398,621 thousand × 60% = NT$3,839,173 thousand.

Note 4: Amounts are stated in thousands of Renminbi, except those stated in thousands of U.S. dollars.

(Concluded)

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TABLE 10

WALSIN LIHWA CORPORATION AND INVESTEES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, US Dollars and Renminbi)

No.	Investee Company	Counterparty	Relationship			Transaction Details
				Financial Statement Accounts	Amount	Payment Terms	% of Total Sales or Assets
0	2021 Walsin Lihwa Corporation	Dongguan Walsin Wire & Cable Co., Ltd. Changshu Walsin Specialty Steel Co., Ltd. Jianyin Walsin Specialty Alloy Materials Co., Ltd. Shanghai Walsin Lihwa Power Wire & Cable Co., Ltd. Dongguan Walsin Wire & Cable Co., Ltd. Changshu Walsin Specialty Steel Co., Ltd. Jianyin Walsin Specialty Alloy Materials Co., Ltd. Shanghai Walsin Lihwa Power Wire & Cable Co., Ltd. Yantai Walsin Specialty Steel Co., Ltd. Dongguan Walsin Wire & Cable Co., Ltd. Jianyin Walsin Specialty Alloy Materials Co., Ltd.	Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries	Trade receivables Trade receivables Trade receivables Trade receivables Sales Sales Sales Sales Sales Other receivables Other receivables	$ 81,510 281,518 245,996 4,515 2,773,189 595,996 668,583 18,689 7,723 32,849 37,008	The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers	- - - - 1 - - - - - -
1	Walsin Lihwa Holdings Limited	Walsin (China) Investment Co., Ltd. Walsin Lihwa Corporation	Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries	Other receivables Trade receivables	RMB 261,794 RMB 10,259	Based on capital demand The terms are set by quotations on the local market and are similar to those of general customers	1 -
2	Joint Success Enterprise Limited	Walsin (Nanjing) Development Co., Ltd.	Transactions between parent company and subsidiaries	Other receivables	RMB 177,412	Based on capital demand	-
							(Continued)

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No.	Investee Company	Counterparty	Relationship			Transaction Details
				Financial Statement Accounts	Amount	Payment Terms	% of Total Sales or Assets
3	Walsin (China) Investment Co., Ltd.	Walsin Lihwa Holdings Limited Yantai Walsin Specialty Steel Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Jiangyin Walsin Steel Cable Co., Ltd. Shanghai Walsin Lihwa Power Wire & Cable Co., Ltd. Changshu Walsin Specialty Steel Co., Ltd. Walsin (Nanjing) Development Co., Ltd. XiAn Walsin Metal Product Co., Ltd. Nanjing Taiwan Trade Mart Management Co., Ltd. Dongguan Walsin Wire & Cable Co., Ltd.	Transactions between subsidiaries and parent company Transactions between subsidiaries Transactions between subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between subsidiaries Transactions between subsidiaries Transactions between subsidiaries Transactions between subsidiaries Transactions between parent company and subsidiaries	Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables	US$ 4,900 US$ 60,175 RMB 363,643 US$ 44,636 US$ 8,717 RMB 214,155 US$ 8,955 US$ 55,825 RMB 698,586 RMB 176,213 RMB 37,250 US$ 68,544	Based on capital demand Based on capital demand Based on capital demand Based on capital demand Based on capital demand Based on capital demand Based on capital demand Based on capital demand Based on capital demand Based on capital demand	- 2 1 1 - 1 2 - - 1
4	Walsin International Investments Limited	PT. Walsin Nickel Industrial Indonesia Walsin (China) Investment Co., Ltd.	Transactions between subsidiaries Transactions between subsidiaries	Other receivables Other receivables	RMB 1,596,871 RMB 2,558,656	Based on capital demand Based on capital demand	4 6
5	Yantai Walsin Stainless Steel Co., Ltd.	Changshu Walsin Specialty Steel Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Changshu Walsin Specialty Steel Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd.	Transactions between subsidiaries Transactions between subsidiaries Transactions between subsidiaries Transactions between subsidiaries	Trade receivables Trade receivables Sales Sales	RMB 27,311 RMB 6,386 RMB 242,772 RMB 233,251	The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers	- - 1 1
6	Jiangyin Walsin Specialty Alloy Materials Co., Ltd.	Yantai Walsin Specialty Steel Co., Ltd. Yantai Walsin Specialty Steel Co., Ltd. Yantai Walsin Specialty Steel Co., Ltd. Walsin (China) Investment Co., Ltd.	Transactions between subsidiaries Transactions between subsidiaries Transactions between subsidiaries Transactions between subsidiaries	Other receivables Trade receivables Sales Other receivables	RMB 10,581 RMB 1,213 RMB 40,500 RMB 99,473	Based on capital demand The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers Based on capital demand	- - - -
7	Walsin Specialty Steel Corp.	Changshu Walsin Specialty Steel Co., Ltd.	Transactions between parent company and subsidiaries	Other receivables	RMB 8,453	Based on capital demand	-
							(Continued)

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No.	Investee Company	Counterparty	Relationship			Transaction Details
				Financial Statement Accounts	Amount	Payment Terms	% of Total Sales or Assets
8	Changshu Walsin Specialty Steel Co., Ltd.	Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Yantai Walsin Specialty Steel Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Yantai Walsin Specialty Steel Co., Ltd. Walsin (China) Investment Co., Ltd.	Transactions between subsidiaries Transactions between subsidiaries Transactions between subsidiaries Transactions between subsidiaries Transactions between subsidiaries	Trade receivables Trade receivables Sales Sales Other receivables	RMB 1,130 RMB 5,739 RMB 817 RMB 32,926 RMB 37,911	The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers Based on capital demand	- - - - -
9	Shanghai Walsin Lihwa Power Wire & Cable Co., Ltd.	Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Walsin (China) Investment Co., Ltd.	Transactions between subsidiaries Transactions between subsidiaries	Sales Other receivables	RMB 6 RMB 83,540	The terms are set by quotations on the local market and are similar to those of general customers Based on capital demand	- -
10	Dongguan Walsin Wire & Cable Co., Ltd.	Walsin (China) Investment Co., Ltd. Shanghai Walsin Lihwa Power Wire & Cable Co., Ltd. Shanghai Walsin Lihwa Power Wire & Cable Co., Ltd.	Transactions between parent company and subsidiaries Transactions between subsidiaries Transactions between subsidiaries	Other receivables Sales Trade receivables	RMB 553,394 RMB 49,712 RMB 14,014	Based on capital demand The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers	1 - -
12	Jiangyin Walsin Steel Cable Co., Ltd.	Yantai Walsin Specialty Steel Co., Ltd.	Transactions between subsidiaries	Sales	RMB 581	The terms are set by quotations on the local market and are similar to those of general customers	-
13	Nanjing Walsin Property Management Co., Ltd.	Walsin (China) Investment Co., Ltd.	Transactions between subsidiaries	Other receivables	RMB 5,420	Based on capital demand	-
0	2020 Walsin Lihwa Corporation	Dongguan Walsin Wire & Cable Co., Ltd. Changshu Walsin Specialty Steel Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Dongguan Walsin Wire & Cable Co., Ltd. Changshu Walsin Specialty Steel Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Shanghai Walsin Lihwa Power Wire & Cable Co., Ltd. Yantai Walsin Stainless Steel Co., Ltd. PT. Walsin Nickel Industrial Indonesia	Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries	Trade receivables Trade receivables Trade receivables Sales Sales Sales Sales Sales Long-term receivables	$ 207,701 7,732 99,820 2,482,034 47,457 200,926 1,733 18,654 5,349,885	The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers Based on capital demand	- - - 2 - - - - 4

(Continued)

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No.	Investee Company	Counterparty	Relationship			Transaction Details
				Financial Statement Accounts	Amount	Payment Terms	% of Total Sales or Assets
1	Walsin Lihwa Holdings Limited	Walsin (China) Investment Co., Ltd. Walsin Lihwa Corporation	Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries	Other receivables Trade receivables	RMB 321,124 RMB 10,499	Based on capital demand The terms are set by quotations on the local market and are similar to those of general customers	1 -
2	Joint Success Enterprise Limited	Walsin (Nanjing) Construction Co., Ltd.	Transactions between parent company and subsidiaries	Other receivables	RMB 177,219	Based on capital demand	1
3	Walsin (China) Investment Co., Ltd.	Walsin Lihwa Holdings Limited Yantai Walsin Specialty Steel Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Jiangyin Walsin Steel Cable Co., Ltd. Shanghai Walsin Lihwa Power Wire & Cable Co., Ltd. Changshu Walsin Specialty Steel Co., Ltd. Walsin (Nanjing) Construction Co., Ltd. Hangzhou Walsin Power Cable & Wire Co., Ltd. XiAn Walsin Metal Product Co., Ltd. Nanjing Taiwan Trade Mart Management Co., Ltd. Dongguan Walsin Wire & Cable Co., Ltd	Transactions between parent company and subsidiaries Transactions between subsidiaries Transactions between subsidiaries Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries Transactions between subsidiaries Transactions between subsidiaries Associates Transactions between subsidiaries Transactions between subsidiaries Transactions between parent company and subsidiaries	Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables	US$ 4,900 US$ 72,407 RMB 435,970 US$ 44,564 US$ 9,987 RMB 295,409 US$ 8,986 US$ 46,675 RMB 250,291 RMB 81,218 RMB 173,857 RMB 55,292 US$ 78,600	Based on capital demand Based on capital demand Based on capital demand Based on capital demand Based on capital demand Based on capital demand Based on capital demand Based on capital demand Based on capital demand Based on capital demand Based on capital demand	- 3 1 1 - 1 1 - 1 - 1
4	Walsin International Investments Limited	Walsin Lihwa Corporation Walsin (China) Investment Co., Ltd.	Transactions between parent company and subsidiaries Transactions between subsidiaries	Other receivables Other receivables	RMB 1,305,589 RMB 2,436,212	Based on capital demand Based on capital demand	4 7
5	Yantai Walsin Stainless Steel Co., Ltd.	Changshu Walsin Specialty Steel Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Changshu Walsin Specialty Steel Co., Ltd. Jiangyin Walsin Specialty Alloy Materials Co., Ltd.	Transactions between subsidiaries Transactions between subsidiaries Transactions between subsidiaries Transactions between subsidiaries	Trade receivables Trade receivables Sales Sales	RMB 30,471 RMB 26,445 RMB 234,934 RMB 172,669	The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers	- - 1 1
6	Jiangyin Walsin Specialty Alloy Materials Co., Ltd.	Yantai Walsin Stainless Steel Co., Ltd. Yantai Walsin Stainless Steel Co., Ltd. Yantai Walsin Stainless Steel Co., Ltd. Walsin (China) Investment Co., Ltd.	Transaction between subsidiaries Transaction between subsidiaries Transaction between subsidiaries Transaction between subsidiaries	Other receivables Trade receivables Sales Other receivables	RMB 6,228 RMB 2,066 RMB 11,060 RMB 174,069	Based on capital demand The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers Based on capital demand	- - - 1
							(Continued)

120 -

No.	Investee Company	Counterparty	Relationship			Transaction Details
				Financial Statement Accounts	Amount	Payment Terms	% of Total Sales or Assets
7	Walsin Specialty Steel Corp.	Changshu Walsin Specialty Steel Co., Ltd. Shanghai Baihe Walsin Lihwa Specialty Steel Co., Ltd.	Transactions between parent company and subsidiaries Transactions between parent company and subsidiaries	Other receivables Other receivables	RMB 8,453 RMB 553	Based on capital demand Based on capital demand	- -
8	Changshu Walsin Specialty Steel Co., Ltd.	Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Yantai Walsin Stainless Steel Co., Ltd. Walsin Lihwa Corporation Jiangyin Walsin Specialty Alloy Materials Co., Ltd. Yantai Walsin Stainless Steel Co., Ltd. Walsin (China) Investment Co., Ltd. Changzhou China Steel Precision Materials Co., Ltd. Changzhou China Steel Precision Materials Co., Ltd.	Transaction between subsidiaries Transaction between subsidiaries Transactions between subsidiaries and parent company Transaction between subsidiaries Transaction between subsidiaries Transactions between subsidiaries Transactions between subsidiaries Transactions between subsidiaries	Trade receivables Trade receivables Sales Sales Sales Other receivables Trade receivables Sales	RMB 71 RMB 7,122 RMB 50 RMB 871 RMB 6,677 RMB 49,075 RMB 1,220 RMB 1,945	The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers Based on capital demand The terms are set by quotations on the local market and are similar to those of general customers The terms are set by quotations on the local market and are similar to those of general customers	- - - - - - - -

(Concluded)

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TABLE 11

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

INFORMATION OF MAJOR SHAREHOLDERS DECEMBER 31, 2021

Name of Major Shareholder	Shares	Shares
	Number of Shares	Percentage of Ownership (%)
LGT Bank (Singapore) Investment Fund under the custody of Standard Chartered Winbond Electronics Corp. Chin-Xin Investment Co., Ltd. TECO Electric & Machinery Co., Ltd.	251,504,000 222,000,000 220,011,000 205,332,690	7.32 6.46 6.41 5.98

Note 1: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (included treasury shares) by Company as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.
Note 2: If a shareholder delivers their shareholdings to the trust, the above information will be disclosed by the individual trustee who opened the trust account. For shareholders who declare insider shareholdings with ownership greater than 10% in accordance with Security and Exchange Act, the shareholdings include shares held by shareholders and those delivered to the trust over which shareholders have rights to determine the use of trust property. For information relating to insider shareholding declaration, please refer to Market Observation Post System.
122 -

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WALSIN — Annual Report 2021

51877_rns_2021-12-23_91118794-a42d-454a-a262-14f775dbf776.pdf

Walsin Lihwa Corporation and Subsidiaries

Opinion

Basis for Opinion

Key Audit Matters

Sales Revenue Recognition

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

Notice to Readers

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of U.S. Dollars, Except Earnings Per Share)

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of U.S. Dollars, Except Earnings Per Share)

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of U.S. Dollars)

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of U.S. Dollars)

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of U.S. Dollars)

WALSIN LIHWA CORPORATION AND SUBSIDIARIES

1. GENERAL INFORMATION

2. APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

e. Foreign currencies

f. Inventories

h. Property, plant and equipment

Financial assets

Equity instruments

1) Subsequent measurement

Derivative financial instruments

m. Hedge accounting

1) Fair value hedges

2) Cash flow hedges

n. Levies

o. Provisions

p. Revenue recognition

1) Revenue from the sale of goods and real estate

2) Revenue from the others

a) Revenue from the rendering of services

q. Leases

b) The Group as lessee

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

8. DERIVATIVE FINANCIAL INSTRUMENTS FOR HEDGING

9. FINANCIAL ASSETS AT AMORTIZED COST

10. CONTRACT ASSETS

11. NOTES RECEIVABLE AND TRADE RECEIVABLES

December 31, 2021

12. FINANCE LEASE RECEIVABLES

13. INVENTORIES

14. FINANCIAL ASSETS MEASURED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

15. SUBSIDIARIES

a. Subsidiaries included in consolidated financial statements

16. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

a. Material associates

December 31, 2021

December 31, 2020

17. PROPERTY, PLANT AND EQUIPMENT

18. LEASE ARRANGEMENTS

b. Lease liabilities

c. Other lease information

WALSIN Annual Report 2021