Winmate — Annual Report 2021

Nov 23, 2021

English Translation of Financial Statements and a Report Originally Issued in Chinese

Ticker:3416

WINMATE INC. PARENT-COMPANY-ONLY FINANCIAL STATEMENTS WITH REPORT OF INDEPENDENT AUDITORS AS OF DECEMBER 31, 2021 AND 2020 AND FOR THE YEARS THEN ENDED

Address: 9F, No.111-6, Shing-De Rd., San-Chung District, New Taipei City 24158, Taiwan. Telephone: (02)8511-0288

The reader is advised that these parent-company-only financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

English Translation of Financial Statements and a Report Originally Issued in Chinese

Index
Item	Page
1. Cover sheet	1
2. Index	2
3. Independent auditors' report	3-7
4. Parent-company-only balance sheets	8-9
5. Parent-company-only statements of comprehensive incomes	10
6. Parent-company-only statements of changes in equity	11
7. Parent-company-only statements of cash flows	12
8. Footnotes to the parent-company-only financial statements
(1) History and organization	13
(2) Date and procedures of authorization of financial statements for issue	13
(3) Newly issued or revised standards and interpretations	13-17
(4) Summary of significant accounting policies	18-42
(5) Significant accounting judgments, estimates and assumptions	42-44
(6) Contents of significant accounts	44-78
(7) Related party transactions	78-81
(8) Assets pledged as collaterals	81
(9) Significant contingencies and unrecognized contract commitments	81
(10) Losses due to major disasters	81
(11) Significant subsequent events	81
(12) Others	82-94
(13) Other disclosures
1. Information on significant transactions	94-95
2. Information on investees	95-96
3. Information on investments in Mainland China	97-98
4. Information on major shareholders	98
(14) Operating segment	98
9. Details of significant accounts	103-128

Parent-company-only Financial Statements

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese Winmate Inc. As of December 31, 2021 and 2020 (Amounts Expressed In Thousands of New Taiwan Dollars) Parent-Company-Only Balance Sheets

Assets			As of December 31, 2021		As of December 31, 2020
Code	Accounts	Notes	Amount	%	Amount	%
	Current assets
1100	Cash and cash equivalents	4,6(1)	\$505,347	14	\$388,433	14
1110	Financial assets at fair value through profit or loss	4,6(2)	-	-	35,047	1
1120	Financial assets at fair value through OCI	4,6(3)	99,270	3	64,987	2
1136	Financial assets measured at amortized cost	4,6(4)	684,979	20	480,730	18
1150	Notes receivable, net	4,6(5)	4,862	-	13	-
1170	Accounts receivable, net	4,6(6),7	226,923	6	189,122	7
1180	Accounts receivable - related parties, net	4,6(6),7	108,846	3	73,342	3
1200	Other receivables		16,729	-	14,455	-
130x	Inventories, net	4,6(7)	557,797	16	402,904	15
1470	Other current assets		56,851	2	7,756	-
11xx	Total current assets		2,261,604	64	1,656,789	60
	Non-current assets
1517	Financial assets at fair value through OCI	4,6(3)	10,000	-	19,972	1
1535	Financial assets measured at amortized cost	4,6(4)	102,178	3	2,166	-
1550	Investment accounted for under equity method	4,6(8)	86,827	3	64,713	2
1600	Property, plant and equipment, net	4,6(9)	924,556	27	929,803	34
1755	Right-of-use assets, net	4,6(20)	959	-	3,643	-
1780	Intangible assets, net	4,6(11)	10,154	-	19,261	1
1840	Deferred tax assets	4,6(22)	28,948	1	30,877	1
1915	Prepayment for acquiring machinery		81,515	2	10,438	1
1920	Refundable deposits		2,177	-	2,177	-
15xx	Total non-current assets		1,247,314	36	1,083,050	40
1xxx	Total Assets		\$3,508,918	100	\$2,739,839	100

(The accompanying notes are an integral part of the parent-company-only financial statements.)

English Translation of Parent-Company-Only Financial Statements Originally Issued in Chinese Winmate Inc. Parent-Company-Only Balance Sheets (Continued) As of December 31, 2021 and 2020 (Amounts Expressed In Thousands of New Taiwan Dollars)

	Liabilities and Equity		As of December 31, 2021		As of December 31, 2020
Code	Accounts	Notes	Amount	%	Amount	%
	Current liabilities
2130	Contract liabilities	4,6(16)	\$49,633	1	\$38,104	2
2170	Accounts payable		370,841	11	253,789	9
2180	Accounts payable - related parties	7	3,522	-	201	-
2200	Other payables	6(12)	202,306	6	155,228	6
2220	Other payables - related parties	7	1,577	-	2,481	-
2230	Current tax liabilities	4,6(25)	95,774	3	74,822	3
2250	Provisions	4,6(15)	3,023	-	1,492	-
2280	Lease liabilities	4,6(20)	1,005	-	2,754	-
2399	Other current liabilities		2,181	-	1,873	-
21xx	Total current liabilities		729,862	21	530,744	20
	Non-current liabilities
2500	Financial liabilities at fair value through profit or loss	4,6(13)	800	-	-	-
2530	Bonds payable	4,6(13)	485,096	14	-	-
2570	Deferred tax liabilities	4,6(22)	27	-	-	-
2580	Lease liabilities	4,6(20)	-	-	1,005	-
2640	Net defined benefit liability	4,6(14)	5,646	-	5,981	-
25xx	Total non-current liabilities		491,569	14	6,986	-
2xxx	Total liabilities		1,221,431	35	537,730	20
31xx 3100	Equity attributable to shareholders of the parent	6(16)
3110	Capital Common stock		725,060	20	723,660	26
3140	Capital collected in advance		330	-	1,000	-
3200	Capital surplus	6(16)	801,165	23	857,237	31
3300	Retained earnings	6(16)
3310	Legal reserve		312,758	9	287,196	11
3320	Special reserve		38,113	1	28,883	1
3350	Unappropriated retained earnings		444,852	13	342,247	12
3400	Other equity interest		(34,791)	(1)	(38,114)	(1)
3xxx	Total equity		2,287,487	65	2,202,109	80
	Total liabilities and equity		\$3,508,918	100	\$2,739,839	100

(The accompanying notes are an integral part of the parent-company-only financial statements.)

Parent-Company-Only Statements of Comprehenstve Income For the Years Ended December 31, 2021 and 2020 (Amounts Expressed in Thousands of New Taiwan Dollars, Except for Earnings per Share) Winmate Inc.

			2021		2020
Code	Items	Notes	Amount	%	Amount	%
4000	Operating revenue	4,6(18),7	\$2,431,831	100	\$1,806,334	100
5000	Operating costs	7	(1,649,650)	(68)	(1,198,837)	(66)
5900	Gross profit		782,181	32	607,497	34
5910	Realized (Unrealized) sales profit		345	-	(87)	-
5950	Gross profit from operations		782,526	32	607,410	34
6000	Operating expenses	7
	6100 Selling expenses		(126,101)	(5)	(109,002)	(6)
	6200 Administrative expenses		(53,344)	(2)	(42,709)	(2)
	6300 Research and development expenses		(175,016)	(7)	(158,004)	(9)
	6450 Expected credit gains (losses)	4,6(19)	(666)	-	(825)	-
	Total operating expenses		(355,127)	(14)	(310,540)	(17)
6900	Operating income		427,399	18	296,870	17
7000	Non-operating income and expenses
	7010 Other income	6(22)	22,187	1	21,491	1
	7020 Other gains or losses	6(22)	(15,365)	(1)	(7,413)	-
	7050 Finance costs	6(22)	(5,230)	-	(198)	-
	7070 Share of profit or loss of associates and joint ventures	4,6(8)	8,707	-	(3,896)	-
	Total non-operating incomes and expenses		10,299	-	9,984	1
7900	Income from continuing operations before income tax		437,698	18	306,854	17
7950	Income tax	4,6(24)	(72,992)	(3)	(50,792)	(3)
8200	Net income		364,706	15	256,062	14
8300	Other comprehensive income (loss)	6(23)
8310	Item that will not be reclassified subsequently to profit or loss
	8311 Remeasurements of defined benefit plans		174	-	(1,454)	-
	8316 Unrealized loss on equity instrument investment at fair value		(2,744)	-	(6,485)	-
	through other comprehensive income (loss)
	8349 Income tax related to components of other comprehensive income		(35)	-	291	-
	that will not be reclassified to profit or loss
8360	Items that may be reclassified subsequently to profit or loss
	8370 Share of other comprehensive income of associates and joint		(4,971)	-	(2,526)	-
	ventures accounted for under the equity method
	8399 Income tax related to items that may be reclassified subsequently to P/L		994	-	505	-
	Total other comprehensive income, net of tax		(6,582)	-	(9,669)	-
8500	Total comprehensive income		\$358,124	15	\$246,393	14
8600	Net income attributable to:
	8610 Shareholders of the parent		\$364,706	15	\$256,062	14
8700
	Comprehensive income (loss) attributable to: 8710 Shareholders of the parent		\$358,124	15	\$246,393	14
9750	Earnings per share-basic (in NTD)	6(25)	\$5.03		\$3.55
9850	Earnings per share-diluted (in NTD)		\$4.62		\$3.52

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

Winmate Inc.

Parent-Company-Only Statements of Changes in Equity

For the Years Ended December 31, 2021 and 2020

(Amounts Expressed In Thousands of New Taiwan Dollars)

		Equity Attributable to Shareholders of the Parent
			Capital		Retained Earnings			Other Equity Item
		Capital	Advance receipts for ordinary share	Capital Surplus	Legal Reserve	Special reserve	Unappropriated Earnings	Exchange differences arising on translation of foreign operations	Unrealized gains or losses on financial assets at fair value through other comprehensive income	Total Equity
Code	Items	3100	3140	3200	3310	3320	3350	3410	3420	3xxx
	A1 Balance as of January 1, 2020	\$721,815	\$65	\$919,075	\$263,075	\$37,134	\$246,870	\$(6,796)	\$(22,088)	\$2,159,150
	Appropriation and distribution of 2019 earnings
	B1 Legal reserve appropriated				24,121		(24,121)			-
	B5 Cash dividends-common shares						(144,376)			(144,376)
	B17 Reversal of special reserve					(8,251)	8,251			-
	C15 Capital surplus transfer to dividend			(72,188)			-			(72,188)
	D1 Net income for 2020						256,062			256,062
	D3 Other comprehensive income (loss), net of tax, for 2020						(1,163)	(2,021)	(6,485)	(9,669)
	D5 Total comprehensive income	-	-	-	-	-	254,899	(2,021)	(6,485)	246,393
	G1 Exercise of employee share options	1,845	935	10,258						13,038
	N1 Share-based payment transaction			92						92
	Q1 Disposal of investments in equity instruments measured at fair value						724		(724)	-
	through other comprehensive income
	Z1 Balance as of December 31, 2020	723,660	1,000	857,237	287,196	28,883	342,247	(8,817)	(29,297)	2,202,109
	Appropriation and distribution of 2020 earnings
	B1 Legal reserve appropriated				25,562		(25,562)			-
	B3 Special reserve					9,230	(9,230)			-
	B5 Cash dividends-common shares						(217,404)			(217,404)
	C5 Equity component of convertible bonds			13,860						13,860
	C15 Capital surplus transfer to dividend			(72,468)			-			(72,468)
	D1 Net income for 2021						364,706			364,706
	D3 Other comprehensive income (loss), net of tax, for 2021						139	(3,977)	(2,744)	(6,582)
	D5 Total comprehensive income (loss)	-	-	-	-	-	364,845	(3,977)	(2,744)	358,124
	G1 Exercise of employee share options	1,400	(670)	2,536						3,266
	Q1 Disposal of investments in equity instruments measured at fair value						(10,044)		10,044	-
	through other comprehensive income
	Z1 Balance as of December 31, 2021	\$725,060	\$330	\$801,165	\$312,758	\$38,113	\$444,852	\$(12,794)	\$(21,997)	\$2,287,487

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

Winmate Inc.

Parent-Company-Only Statements of Cash Flows

For the Years Ended December 31, 2021 and 2020

(Amounts Expressed In Thousands of New Taiwan Dollars)

Code	Items	2021	2020	Code	Items	2021	2020
	AAAA Cash flows from operating activities:				BBBB Cash flows from investing activities:
A10000	Income before income tax	\$437,698	\$306,854	B00010	Acquisition of financial assets at fair value through other comprehensive income	(36,956)	(20,001)
A20000	Adjustments:			B00020	Proceeds from disposal of financial assets at fair value through other comprehensive income	9,901	10,503
A20010	Profit or loss not effecting cash flows:			B00040	Acquisition of financial assets measured at amortized cost	(490,286)	(373,031)
A20100	Depreciation (including right-of-use assets)	25,394	24,323	B00050	Proceeds from disposal of financial assets measured at amortized cost	186,025	290,969
A20200	Amortization	22,783	14,083	B01800	Acquisition of equity-method investments	(18,033)	-
A20300	Expected credit losses (gain)	666	825	B02700	Acquisition of property, plant and equipment	(17,463)	(23,651)
A20400	Net loss (gain) of financial assets (liabilities) at fair value through profit or loss	(2,905)	(705)	B03700	Decrease (increase) in refundable deposits	-	7
A20900	Interest expense	5,230	198	B04500	Acquisition of intangible assets	(13,676)	(28,675)
A21200	Interest income	(5,496)	(5,945)	B07100	Increase in prepayments for acquiring machinery	(71,077)	(6,259)
A21300	Dividend income	(5,488)	(3,814)	BBBB	Cash flows from investing activities	(451,565)	(150,138)
A21900	Cost of share based payment	-	92
A22400	Share of profit or loss of subsidiaries, associates and joint ventures	(8,707)	3,896
A23100	Gain on disposal of investments	(79)	(205)		CCCC Cash flows from financing activities:
A23700	Impairment loss (gain) on non-financial assets	(7,069)	9,035	C01200	Issuance of corporate bond	495,012	-
A23900	Unrealized (realized) sales profit	(345)	87	C03100	Decrease in guarantee deposits received	-	(162)
A30000	Changes in operating assets and liabilities:			C04020	Cash payments for the principal portion of the lease liabilities	(2,840)	(2,841)
A31115	Financial assets at fair value through profit or loss	37,631	25,886	C04500	Cash dividend	(289,872)	(216,564)
A31130	Notes receivable	(4,849)	(7)	C04800	Exercise of employee share options	3,266	13,038
A31150	Accounts receivable	(38,452)	(36,842)	CCCC	Cash flows from financing activities	205,566	(206,529)
A31160	Accounts receivable - related parties	(35,519)	(20,827)
A31180	Other receivables	(2,274)	(13,933)
A31200	Inventories	(147,824)	(192,498)
A31240	Other current assets	(49,095)	34,161
A32125	Contract liabilities	11,529	11,392
A32150	Accounts payable	117,052	172,075		EEEE Increase (decrease) in cash and cash equivalents	116,914	(15,745)
A32160 A32180	Accounts payable - related parties Other payables	3,321 47,078	(631) 26,121		E00100 Cash and cash equivalents at beginning of period E00200 Cash and cash equivalents at end of period	388,433 \$505,347	404,178 \$388,433
A32190	Other payables - related parties	(904)	(335)
A32220	Provisions	1,531	1,492
A32230	Other current liabilities	308	156
A32240	Net defined benefit liability	(161)	(148)
A33000	Cash generated from (used in) operations 營運產生之現金流入(出)	401,054	354,786
A33100	Interest received	5,496	5,945
A33200	Dividend received	5,488	3,814
A33300	Interest paid	-	(6)
A33500	Income tax paid	(49,125)	(23,617)
AAAA	Cash flows from operating activities	362,913	340,922

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

English Translation of Parent-Company-Only Financial Statements and Footnotes Originally Issued in Chinese Winmate Inc. Notes to the Parent-Company-Only Financial Statements (Amounts Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

1. HISTORY AND ORGANIZATION

Winmate Inc. (referred to "the Company") was incorporated in Republic of China in January, 1996. The Company engage mainly in the R&D, manufacturing, sales, and import & export agent of Rugged Display, Rugged Mobile Computer, Digital Signage equipment modules and other related product.

The Company's shares were publicly listed on Taipei Exchange (TPEX) on September 27, 2007 and were publicly listed on Taiwan Stock Exchange (TWSE) on January 23, 2015. The address of its registered office and principle place of business is at 9F, No.111-6, Shing-De Rd., San-Chung District, New Taipei City, Taiwan.

2. DATE AND PROCEDURE OF AUTHORIZATION FOR FINANCIAL STATEMENTS ISSUANCE

The financial statements of the Company for the year ended December 31, 2021 and 2020 were authorized for issue by the Board of Directors on February 22, 2022.

3. NEWLY ISSUED OR REVISED STANDARDS AND INTERPRETATIONS

(1)Changes in accounting policies resulting from applying for the first time certain standards and amendments

The Company applied for the first time the International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are recognized by Financial Supervisory Commission ("FSC") and become effective for annual periods beginning on or after January 1, 2021. The new standards and amendments had no material impact on the Company.

(2)Standards or interpretations issued, revised or amended, by International Accounting Standards Board ("IASB") which are endorsed by FSC, but not yet adopted by the Company as at the end of the reporting period are listed below.

		Effective Date
Items	New, Revised or Amended Standards and Interpretations	issued by IASB
a	Narrow-scope amendments of IFRS, including Amendments to	January 1, 2022
	IFRS 3, Amendments to IAS 16, Amendments to IAS 37 and
	the Annual Improvements

• (A) Narrow-scope amendments of IFRS, including Amendments to IFRS 3, Amendments to IAS 16, Amendments to IAS 37 and the Annual Improvements
• (a) Updating a Reference to the Conceptual Framework (Amendments to IFRS 3)

The amendments updated IFRS 3 by replacing a reference to an old version of the Conceptual Framework for Financial Reporting with a reference to the latest version, which was issued in March 2018. The amendments also added an exception to the recognition principle of IFRS 3 to avoid the issue of potential "day 2" gains or losses arising for liabilities and contingent liabilities. Besides, the amendments clarify existing guidance in IFRS 3 for contingent assets that would not be affected by replacing the reference to the Conceptual Framework.

(b) Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16)

The amendments prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognise such sales proceeds and related cost in profit or loss.

(c) Onerous Contracts - Cost of Fulfilling a Contract (Amendments to IAS 37)

The amendments clarify what costs a company should include as the cost of fulfilling a contract when assessing whether a contract is onerous.

(d) Annual Improvements to IFRS Standards 2018 - 2020

Amendment to IFRS 1

The amendment simplifies the application of IFRS 1 by a subsidiary that becomes a first-time adopter after its parent in relation to the measurement of cumulative translation differences.

Amendment to IFRS 9 Financial Instruments

The amendment clarifies the fees a company includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability.

Amendment to Illustrative Examples Accompanying IFRS 16 Leases

The amendment to Illustrative Example 13 accompanying IFRS 16 modifies the treatment of lease incentives relating to lessee's leasehold improvements.

Amendment to IAS 41

The amendment removes a requirement to exclude cash flows from taxation when measuring fair value thereby aligning the fair value measurement requirements in IAS 41 with those in other IFRS Standards.

The abovementioned standards and interpretations were issued by IASB and endorsed by FSC so that they are applicable for annual periods beginning on or after 1 January 2022. The standards and interpretations have no material impact on the Company.

(3)Standards or interpretations issued, revised or amended, by IASB which are not endorsed by FSC, and not yet adopted by the Company as at the end of the reporting period are listed below.

		Effective Date issued
Items	New, Revised or Amended Standards and Interpretations	by IASB
a	IFRS 10 "Consolidated Financial Statements" and IAS 28	To be determined by
	"Investments in Associates and Joint Ventures" – Sale or	IASB
	Contribution of Assets between an Investor and its Associate
	or Joint Ventures
b	IFRS 17 "Insurance Contracts"	January 1, 2023
c	Classification of Liabilities as Current or Non-current –	January 1, 2023
	Amendments to IAS 1
d	Disclosure Initiative - Accounting Policies – Amendments to	January 1, 2023
	IAS 1
e	Definition of Accounting Estimates – Amendments to IAS 8	January 1, 2023
f	Deferred Tax related to Assets and Liabilities arising from a	January 1, 2023
	Single Transaction – Amendments to IAS 12

(A) IFRS 10 "Consolidated Financial Statements" and IAS 28 "Investments in Associates and Joint Ventures" – Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures

The amendments address the inconsistency between the requirements in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures, in dealing with the loss of control of a subsidiary that is contributed to an associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of non-monetary assets to an associate or a joint venture to the extent of the interest attributable to the other equity holders in the associate or joint ventures. IFRS 10 requires full profit or loss recognition on the loss of control of the subsidiary. IAS 28 was amended so that the gain or loss resulting from the sale or contribution of assets that constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized in full.

IFRS 10 was also amended so that the gains or loss resulting from the sale or contribution of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized only to the extent of the unrelated investors' interests in the associate or joint venture.

(B) IFRS 17 "Insurance Contracts"

IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects (including recognition, measurement, presentation and disclosure requirements). The core of IFRS 17 is the General (building block) Model, under this model, on initial recognition, an entity shall measure a group of insurance contracts at the total of the fulfilment cash flows and the contractual service margin. The carrying amount of a group of insurance contracts at the end of each reporting period shall be the sum of the liability for remaining coverage and the liability for incurred claims.

Other than the General Model, the standard also provides a specific adaptation for contracts with direct participation features (the Variable Fee Approach) and a simplified approach (Premium Allocation Approach) mainly for short-duration contracts.

IFRS 17 was issued in May 2017 and it was amended in June 2020. The amendments include deferral of the date of initial application of IFRS 17 by two year to annual beginning on or after January 1, 2023 (from the original effective date of January 1, 2021); provide additional transition reliefs; simplify some requirements to reduce the costs of applying IFRS 17 and revise some requirements to make the results easier to explain. IFRS 17 replaces an interim Standard – IFRS 4 Insurance Contracts – from annual reporting periods beginning on or after January 1, 2023.

(C) Classification of Liabilities as Current or Non-current – Amendments to IAS 1

These are the amendments to paragraphs 69-76 of IAS 1 Presentation of Financial statements and the amended paragraphs related to the classification of liabilities as current or non-current.

(D) Disclosure Initiative - Accounting Policies – Amendments to IAS 1

The amendments improve accounting policy disclosures that to provide more useful information to investors and other primary users of the financial statements.

(E) Definition of Accounting Estimates – Amendments to IAS 8

The amendments introduce the definition of accounting estimates and included other amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to help companies distinguish changes in accounting estimates from changes in accounting policies.

(F) Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12

The amendments narrow the scope of the recognition exemption in paragraphs 15 and 24 of IAS 12 so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences.

The abovementioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the Company's financial statements were authorized for issue, the local effective dates are to be determined by FSC. The Company assesses that there will be no significant impact on the Company's financial statements then.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIEFS

(1) Statement of compliance

The parent-company-only financial statements of the Company for the years ended December 31, 2021 and 2020 were prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers ("the Regulations").

(2) Basis of preparation

The Company prepared parent-company-only financial statements in accordance with Article 21 of the Regulations, which provided that the profit or loss and other comprehensive income for the period presented in the parent-company-only financial statements shall be the same as the profit or loss and other comprehensive income attributable to stockholders of the parent presented in the consolidated financial statements for the period, and the total equity presented in the parent-company-only financial statements shall be the same as the equity attributable to the parent company presented in the consolidated financial statements. Therefore, the Company accounted for its investments in subsidiaries using equity method and, accordingly, made necessary adjustments.

The parent-company-only financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The parent-company-only financial statements are expressed in thousands of New Taiwan Dollars ("NT\$") unless otherwise stated.

(3) Foreign currency transactions

The Company's parent-company-only financial statements are presented in its functional currency, New Taiwan Dollars (NTD). Items included in the parent-company-only financial statements are measured using that functional currency.

Transactions in foreign currencies are initially recorded by the Company at functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency closing rate of exchange ruling at the reporting date. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.

All exchange differences arising on the settlement of monetary items or on translating monetary items are taken to profit or loss in the period in which they arise except for the following:

• (A)Exchange differences arising from foreign currency borrowings for an acquisition of a qualifying asset to the extent that they are regarded as an adjustment to interest costs are included in the borrowing costs that are eligible for capitalization.
• (B)Foreign currency items within the scope of IFRS 9 Financial Instruments are accounted for based on the accounting policy for financial instrument.
• (C)Exchange differences arising on a monetary item that forms part of a reporting entity's net investment in a foreign operation is recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment.

When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. When a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

(4) Translation of financial statements in foreign currency

The assets and liabilities of foreign operations are translated into NTD at the closing rate of exchange prevailing at the reporting date and the income and expenses are translated at an average exchange rate for the period. The exchange differences arising on the translation are recognized in other comprehensive income. On disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognized. The following are accounted for as disposals even if an interest in the foreign operation is retained by the Company: the loss of control over a foreign operation, the loss of significant influence over a foreign operation, or the loss of joint control over a foreign operation.

On the partial disposal of a subsidiary that includes a foreign operation that does not result in a loss of control, the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is re-attributed to the non-controlling interests in that foreign operation. In partial disposal of an associate or jointly controlled entity that includes a foreign operation that does not result in a loss of significant influence or joint control, only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is reclassified to profit or loss.

(5) Current and non-current distinction

An asset is classified as current when:

• (A)The Company expects to realize the asset, or intends to sell or consume it, in its normal operating cycle.
• (B)The Company holds the asset primarily for the purpose of trading.
• (C)The Company expects to realize the asset within twelve months after the reporting period.
• (D)The asset is cash or cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when:

• (A)The Company expects to settle the liability in its normal operating cycle.
• (B)The Company holds the liability primarily for the purpose of trading.
• (C)The liability is due to be settled within twelve months after the reporting period.
• (D)The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities are classified as non-current.

(6) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value (include fixed-term deposits that have matures of 3 months from the date of acquisition).

(7) Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities within the scope of IFRS 9 Financial Instruments are recognized initially at fair value plus or minus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs.

A. Financial instruments: Recognition and Measurement

The Company accounts for regular way purchase or sales of financial assets on the trade date.

The Company classified financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss considering both factors below:

(a)the Company's business model for managing the financial assets and (b)the contractual cash flow characteristics of the financial asset.

Financial assets measured at amortized cost

A financial asset is measured at amortized cost if both of the following conditions are met and presented as note receivables, trade receivables financial assets measured at amortized cost and other receivables etc., on balance sheet as at the reporting date:

• (a)the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and
• (b)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.

Such financial assets are subsequently measured at amortized cost (the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount and the maturity amount and adjusted for any loss allowance) and is not part of a hedging relationship. A gain or loss is recognized in profit or loss when the financial asset is derecognized, through the amortization process or in order to recognise the impairment gains or losses.

Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

• (a)Purchased or originated credit-impaired financial assets. For those financial assets, the Group applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.
• (b)Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Group applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Financial asset measured at fair value through other comprehensive income

A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:

• (a)the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and
• (b)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.

Recognition of gain or loss on a financial asset measured at fair value through other comprehensive income are described as below:

• (a)A gain or loss on a financial asset measured at fair value through other comprehensive income recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses, until the financial asset is derecognized or reclassified.

• (b)When the financial asset is derecognized the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.

• (c)Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

• (i)Purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.
• (ii)Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Besides, for certain equity investments within the scope of IFRS 9 that is neither held for trading nor contingent consideration recognized by an acquirer in a business combination to which IFRS 3 applies, the Company made an irrevocable election to present the changes of the fair value in other comprehensive income at initial recognition. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss (when disposal of such equity instrument, its cumulated amount included in other components of equity is transferred directly to the retained earnings) and these investments should be presented as financial assets measured at fair value through other comprehensive income on the balance sheet. Dividends on such investment are recognized in profit or loss unless the dividends clearly represents a recovery of part of the cost of investment.

Financial asset measured at fair value through profit or loss

Financial assets were classified as measured at amortized cost or measured at fair value through other comprehensive income based on aforementioned criteria. All other financial assets were measured at fair value through profit or loss and presented on the balance sheet as financial assets measured at fair value through profit or loss.

Such financial assets are measured at fair value, the gains or losses resulting from remeasurement is recognized in profit or loss which includes any dividend or interest received on such financial assets.

B. Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on debt instrument investments measured at fair value through other comprehensive income and financial asset measured at amortized cost. The loss allowance on debt instrument investments measured at fair value through other comprehensive income is recognized in other comprehensive income and not reduce the carrying amount in the statement of financial position.

The Company measures expected credit losses of a financial instrument in a way that reflects:

• (a) an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
• (b) the time value of money; and
• (c) reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

The loss allowance is measures as follow:

• (a) At an amount equal to 12-month expected credit losses: the credit risk on a financial asset has not increased significantly since initial recognition or the financial asset is determined to have low credit risk at the reporting date. In addition, the Company measures the loss allowance at an amount equal to lifetime expected credit losses in the previous reporting period, but determines at the current reporting date that the credit risk on a financial asset has increased significantly since initial recognition is no longer met.
• (b)At an amount equal to the lifetime expected credit losses: the credit risk on a financial asset has increased significantly since initial recognition or financial asset that is purchased or originated credit-impaired financial asset.
• (c)For trade receivables or contract assets arising from transactions within the scope of IFRS 15, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.
• (d)For lease payments receviables arising from transactions within the scope of IFRS 16, the Company measures the loss allowance at amount equal to lifetime expected credit losses.

At each reporting date, the Company needs to assess whether the credit risk on a financial asset has increased significantly since initial recognition by comparing the risk of a default occurring at the reporting date and the risk of default occurring at initial recognition. Please refer to Note 12 for further details on credit risk.

C. Derecognition of financial assets

A financial asset is derecognized when:

• (a)The rights to receive cash flows from the asset have expired.
• (b)The Company has transferred the asset and substantially all the risks and rewards of the asset have been transferred.
• (c)The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the consideration received or receivable including any cumulative gain or loss that had been recognized in other comprehensive income, is recognized in profit or loss.

D. Financial liabilities and equity

Classification between liabilities or equity

The Company classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The transaction costs of an equity transaction are accounted for as a deduction from equity (net of any related income tax benefit) to the extent they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided.

Compound instruments

The Company evaluates the terms of the convertible bonds issued to determine whether it contains both a liability and an equity component. Furthermore, the Company assesses if the economic characteristics and risks of the put and call options contained in the convertible bonds are closely related to the economic characteristics and risk of the host contract before separating the equity element.

For the liability component excluding the derivatives, its fair value is determined based on the rate of interest applied at that time by the market to instruments of comparable credit status. The liability component is classified as a financial liability measured at amortized cost before the instrument is converted or settled. For the embedded derivative that is not closely related to the host contract (for example, if the exercise price of the embedded call or put option is not approximately equal on each exercise date to the amortized cost of the host debt instrument), it is classified as a liability component and subsequently measured at fair value through profit or loss unless it qualifies for an equity component. The equity component is assigned the residual amount after deducting from the fair value of the instrument as a whole the amount separately determined for the liability component. Its carrying amount is not remeasured in the subsequent accounting periods. If the convertible bond issued does not have an equity component, it is accounted for as a hybrid instrument in accordance with the requirements under IFRS 9 Financial Instruments.

Transaction costs are apportioned between the liability and equity components of the convertible bond based on the allocation of proceeds to the liability and equity components when the instruments are initially recognized.

On conversion of a convertible bond before maturity, the carrying amount of the liability component being the amortized cost at the date of conversion is transferred to equity.

Financial liabilities

Financial liabilities within the scope of IFRS 9 Financial Instruments are classified as financial liabilities at fair value through profit or loss or financial liabilities measured at amortized cost upon initial recognition.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated as at fair value through profit or loss. A financial liability is classified as held for trading if:

• (a)It is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;
• (b)On initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or
• (c)It is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).

If a contract contains one or more embedded derivatives, the entire hybrid (combined) contract may be designated as a financial liability at fair value through profit or loss; or a financial liability may be designated as at fair value through profit or loss when doing so results in more relevant information, because either:

• (a)It eliminates or significantly reduces a measurement or recognition inconsistency; or
• (b)A group of financial assets, financial liabilities or both is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the group is provided internally on that basis to the key management personnel.

Gains or losses on the subsequent measurement of liabilities at fair value through profit or loss including interest paid are recognized in profit or loss.

Financial liabilities at amortized cost

Financial liabilities measured at amortized cost include interest bearing loans and borrowings that are subsequently measured using the effective interest rate method after initial recognition. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the effective interest rate method amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or transaction costs.

Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified (whether or not attributable to the financial difficulty of the debtor), such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

E. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

(8) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

A.In the principal market for the asset or liability, or

B.In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible to by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

(9) Inventories

Inventories are valued at lower of cost or net realizable value item by item.

Costs incurred in bringing each inventory to its present location and condition are accounted for as follows.

Raw materials - At actual purchase cost, using weighted average method Finished goods and work in progress - Cost of direct materials and labor and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale

Rendering of services is accounted in accordance with IFRS 15 and not within the scope of inventories.

(10) Investments accounted for using the equity method

The Company accounted for its investments in subsidiaries using equity method and made necessary adjustments in accordance with Article 21 of the Regulations. Such adjustments were made after the Company considered the different accounting treatments to account for its investments in subsidiaries in the consolidated financial statements under IFRS 10 "Consolidated Financial Statements" and the different IFRSs adopted from different reporting entity's perspectives, and the Company recorded such adjustments by crediting or debiting to investments accounted for under the equity method, share of profit or loss of subsidiaries, associates and joint ventures and share of other comprehensive income of subsidiaries, associates and joint ventures.

The Company's investment in its associate is accounted for using the equity method other than those that meet the criteria to be classified as held for sale. An associate is an entity over which the Company has significant influence.

Under the equity method, the investment in the associate or investment in a joint venture is carried in the balance sheet at cost and adjusted thereafter for the post-acquisition change in the Company's share of net assets of the associate or joint venture. After the interest in the associate or joint venture is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. Unrealized gains and losses resulting from transactions between the Company and the associate or joint venture are eliminated to the extent of the Company's related interest in the associate or joint venture.

When changes in the net assets of an associate or a joint venture occur and not those that are recognized in profit or loss or other comprehensive income and do not affects the Company's percentage of ownership interests in the associate or joint venture, the Company recognizes such changes in equity based on its percentage of ownership interests. The resulting capital surplus recognized will be reclassified to profit or loss at the time of disposing the associate or joint venture on a prorata basis.

When the associate or joint venture issues new stock, and the Company's interest in an associate or a joint venture is reduced or increased as the Company fails to acquire shares newly issued in the associate or joint venture proportionately to its original ownership interest, the increase or decrease in the interest in the associate or joint venture is recognized in Additional Paid in Capital and Investment accounted for using the equity method. When the interest in the associate or joint venture is reduced, the cumulative amounts previously recognized in other comprehensive income are reclassified to profit or loss or other appropriate items. The aforementioned capital surplus recognized is reclassified to profit or loss on a pro rata basis when the Company disposes the associate or joint venture.

The financial statements of the associate or joint venture are prepared for the same reporting period as the Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Company.

The Company determines at each reporting date whether there is any objective evidence that the investment in the associate or an investment in a joint venture is impaired in accordance with IAS 28 Investments in Associates and Joint Ventures. If this is the case the Company calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value and recognizes the amount in the 'share of profit or loss of an associate' in the statement of comprehensive income in accordance with IAS 36 Impairment of Assets. In determining the value in use of the investment, the Company estimates:

• A.Its share of the present value of the estimated future cash flows expected to be generated by the associate or joint venture, including the cash flows from the operations of the associate and the proceeds on the ultimate disposal of the investment; or
• B.The present value of the estimated future cash flows expected to arise from dividends to be received from the investment and from its ultimate disposal.

Because goodwill that forms part of the carrying amount of an investment in an associate or an investment in a joint venture is not separately recognized, it is not tested for impairment separately by applying the requirements for impairment testing goodwill in IAS 36 Impairment of Assets.

Upon loss of significant influence over the associate or joint venture, the Company measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss. Furthermore, if an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the entity continues to apply the equity method and does not remeasure the retained interest.

(11) Property, plant and equipment

Property, plant and equipment are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of dismantling and removing the item and restoring the site on which it is located and borrowing costs for construction in progress if the recognition criteria are met. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. When significant parts of property, plant and equipment are required to be replaced in intervals, the Company recognized such parts as individual assets with specific useful lives and depreciation, respectively. The carrying amount of those parts that are replaced is derecognized in accordance with the derecognition provisions of IAS 16 "Property, plant and equipment". When a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

Buildings	38~44 years
Machinery and equipment	3~5 years
Office equipment	3~5 years
Other equipment	3~5 years

An item of property, plant and equipment or any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is recognized in profit or loss.

The property, plant and equipment's residual values, useful lives and methods of depreciation are reviewed at each financial year. If the expected values differ from the estimates, the differences are recorded as a change in accounting estimate.

(12) Investment property

The Company's owned investment properties are measured initially at cost, including transaction costs. The carrying amount includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met and excludes the costs of day-to-day servicing of an investment property. Subsequent to initial recognition, other than those that meet the criteria to be classified as held for sale (or are included in a disposal group that is classified as held for sale) in accordance with IFRS 5 Noncurrent Assets Held for Sale and Discontinued Operations, investment properties are measured using the cost model in accordance with the requirements of IAS 16 Property, plant and equipment for that model. If investment properties are held by a lessee as right-of-use assets and is not held for sale in accordance with IFRS 5, investment properties are measured in accordance with the requirements of IFRS 16.

Investment properties are derecognized when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period of derecognition.

The Company transfers properties to or from investment properties according to the actual use of the properties.

The Company transfers to or from investment properties when there is a change in use for these assets. Properties are transferred to or from investment properties when the properties meet, or cease to meet, the definition of investment property and there is evidence of the change in use.

(13) Leases

The Company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset for a period of time, the Compamy assesses whether, throughout the period of use, has both of the following:

• A.The right to obtain substantially all of the economic benefits from use of the identified asset; and
• B.The right to direct the use of the identified asset.

For a contract that is, or contains, a lease, the Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract. For a contract that contains a lease component and one or more additional lease or non-lease components, the Company allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate standalone price of the non-lease components. The relative stand-alone price of lease and non-lease components shall be determined on the basis of the price the lessor, or a similar supplier, would charge the Company for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the Company estimates the stand-alone price, maximising the use of observable information.

Company as a lessee

Except for leases that meet and elect short-term leases or leases of low-value assets, the Company recognizes right-of-use asset and lease liability for all leases which the Company is the lessee of those lease contracts.

At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses its incremental borrowing rate. At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:

• A. fixed payments (including in-substance fixed payments), less any lease incentives receivable;
• B. variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
• C. amounts expected to be payable by the lessee under residual value guarantees;
• D. the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and
• E. payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

After the commencement date, the Company measures the lease liability on an amortised cost basis, which increases the carrying amount to reflect interest on the lease liability by using an effective interest method; and reduces the carrying amount to reflect the lease payments made.

At the commencement date, the Company measures the right-of-use asset at cost. The cost of the right-of-use asset comprises:

• A. the amount of the initial measurement of the lease liability;
• B. any lease payments made at or before the commencement date, less any lease incentives received;
• C. any initial direct costs incurred by the lessee; and
• D. an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

For subsequent measurement of the right-of-use asset, the Company measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses. That is, the Company measures the right-of-use applying a cost model.

If the lease transfers ownership of the underlying asset to the Company by the end of the lease term or if the cost of the right-of-use asset reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Company depreciates the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

The Company applies IAS 36 "Impairment of Assets" to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.

Except for those leases that the Company accounted for as short-term leases or leases of lowvalue assets, the Company presents right-of-use assets and lease liabilities in the balance sheet and separately presents lease-related interest expense and depreciation charge in the statements comprehensive income.

For short-term leases or leases of low-value assets, the Company elects to recognize the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis.

Company as a lessor

At inception of a contract, the Company classifies each of its leases as either an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset. At the commencement date, the Company recognizes assets held under a finance lease in its balance sheet and present them as a receivable at an amount equal to the net investment in the lease.

For a contract that contains lease components and non-lease components, the Company allocates the consideration in the contract applying IFRS 15.

The Company recognizes lease payments from operating leases as rental income on either a straight-line basis or another systematic basis. Variable lease payments for operating leases that do not depend on an index or a rate are recognized as rental income when incurred.

(14) Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is its fair value as at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses, if any. Internally generated intangible assets, not meeting the recognition criteria, are not capitalized and expenditure is reflected in profit or loss for the year in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.

The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each financial year. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates.

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in profit or loss when the asset is derecognized.

A summary of the policies applied to the Company's intangible assets is as follows:

	Cost of Computer Software
Useful economic life	1~6 years
Amortization method	Straight-line method during the contract term
Internally generated or acquired externally	Acquired externally

(15) Impairment of non-financial assets

The Company assesses at the end of each reporting period whether there is any indication that an asset in the scope of IAS 36 Impairment of Assets may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset's recoverable amount. An asset's recoverable amount is the higher of an asset's or cashgenerating unit's ("CGU") fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the asset's or cash-generating unit's recoverable amount. A previously recognized impairment loss is reversed only if there has been an increase in the estimated service potential of an asset which in turn increases the recoverable amount. However, the reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years.

An impairment loss of continuing operations or a reversal of such impairment loss is recognized in profit or loss.

(16) Provisions

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probably that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Company expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Provision for warranties

Provision for warranties is estimate by sales of goods contract and the Management's best estimate of the future outflow of economic benefits due to maintenance and warranty obligations (based on historical warranty experience).

(17) Revenue recognition

The Company's revenue arising from contracts with customers mainly includes sale of goods. The accounting policies are explained as follow:

Sale of goods

The Company manufactures and sells of its products. Sales are recognized when control of the goods is transferred to the customer and the goods are delivered to the customers. The main product of the Company is Rugged Display and revenue is recognized based on the consideration stated in the contract.

The credit period of the Company's sale of goods is from from T/T to 14~90 days. For most of the contracts, when the Company transfers the goods to customers and has a right to an amount of consideration that is unconditional, these contracts are recognized as trade receivables. The period between the time when the Company transfers the goods to customers and when the customers pay for that goods is usually short and have no significant financing component to the contract. In the case that the Company has the right to transfer the goods to customers but does not has a right to an amount of consideration that is unconditional, these contacts should be presented as contract assets. Besides, in accordance with IFRS 9, the Company measures the loss allowance for a contract asset at an amount equal to the lifetime expected credit losses.

Rendering of services

Services revenue recognized when render services.

(18) Post-employment benefits

All regular employees of the Company and its domestic subsidiaries are entitled to pension plans that are managed by an independently administered pension fund committee. Fund assets are deposited under the committee's name in the specific bank account and hence, not associated with the Company and its domestic subsidiaries. Therefore, fund assets are not included in the Company's financial statements. Pension benefits for employees of the overseas subsidiaries and the branches are provided in accordance with the respective local regulations.

For the defined contribution plan, the Company will make a monthly contribution of no less than 6% of the monthly wages of the employees subject to the plan. The Company recognizes expenses for the defined contribution plan in the period in which the contribution becomes due.

Post-employment benefit plan that is classified as a defined benefit plan uses the Projected Unit Credit Method to measure its obligations and costs based on actuarial assumptions. Remeasurements, comprising of the effect of the actuarial gains and losses, the effect of the asset ceiling (excluding net interest) and the return on plan assets, excluding net interest, are recognized as other comprehensive income with a corresponding debit or credit to retained earnings in the period in which they occur. Past service costs are recognized in profit or loss on the earlier of:

A. the date of the plan amendment or curtailment, and B. the date that the Company recognizes restructuring-related costs

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset, both as determined at the start of the annual reporting period, taking account of any changes in the net defined benefit liability (asset) during the period as a result of contribution and benefit payment.

(19) Share-based payment transactions

The cost of equity-settled transactions between the Company is recognized based on the fair value of the equity instruments granted. The fair value of the equity instruments is determined by using an appropriate pricing model.

The cost of equity-settled transactions is recognized, together with a corresponding increase in other capital reserves in equity, over the period in which the performance and/or service conditions are fulfilled. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Company's best estimate of the number of equity instruments that will ultimately vest. The income statement expense or credit for a period represents the movement in cumulative expense recognized as at the beginning and end of that period.

No expense is recognized for awards that do not ultimately vest, except for equity-settled transactions where vesting is conditional upon a market or non-vesting condition, which are treated as vesting irrespective of whether or not the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied.

Where the terms of an equity-settled transaction award are modified, the minimum expense recognized is the expense as if the terms had not been modified, if the original terms of the award are met. An additional expense is recognized for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee as measured at the date of modification.

Where an equity-settled award is cancelled, it is treated as if it vested on the date of cancellation, and any expense not yet recognized for the award is recognized immediately. This includes any award where non-vesting conditions within the control of either the entity or the employee are not met. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in the previous paragraph.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

(20) Income tax

Income tax expense (benefit) is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Current income tax relating to items recognized in other comprehensive income or directly in equity is recognized in other comprehensive income or equity and not in profit or loss.

The income tax for undistributed earnings is recognized as income tax expense in the subsequent year when the distribution proposal is approved by the Shareholders' meeting.

Deferred tax

Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

• A. Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;
• B. In respect of taxable temporary differences associated with investments in subsidiaries, and associates and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

• A.Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;or
• B.In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will be reversed in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

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

Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity. Deferred tax assets are reassessed at each reporting date and are recognized according.

Deferred tax assets and liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

5.SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Company's parent-company-only financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the end of the reporting period. However, uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that would have a significant risk for a material adjustment to the carrying amounts of assets and liabilities within the next fiscal year are discussed below.

A.Fair value of financial instruments

Where the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be derived from active markets, they are determined using valuation techniques including the income approach (for example the discounted cash flows model) or market approach. Changes in assumptions about these factors could affect the reported fair value of the financial instruments. Please refer to Note 12 for more details.

B. Accounts receivables - estimation of impairment loss

The Company estimates the impairment loss of accounts receivables at an amount equal to lifetime expected credit losses. The credit loss is the present value of the difference between the contractual cash flows that are due under the contract (carrying amount) and the cash flows that expects to receive (evaluate forward looking information). However, as the impact from the discounting of short-term receivables is not material, the credit loss is measured by the undiscounted cash flows. Where the actual future cash flows are lower than expected, a material impairment loss may arise. Please refer to Note 6 for more details.

C. Inventory

Estimates of net realizable value of inventories take into consideration that inventories may be damaged, become wholly or partially obsolete, or their selling prices have declined. The estimates are based on the most reliable evidence available at the time the estimates are made. Please refer to Note 6 for more details.

D. Pension benefits

The cost of post-employment benefit and the present value of the pension obligation under defined benefit pension plans are determined using actuarial valuations. An actuarial valuation involves making various assumptions. These include the determination of the discount rate and changes of thefuture salary etc. The assumptions and models used for estimating fair value for the cost of post-employment benefit and the present value of the pension obligation are disclosed in Note 6.

E. Share-based payment transactions

The Company measures the cost of equity-settled transactions with employees by reference to the fair value of the equity instruments at the date at which they are granted. Estimating fair value for share-based payment transactions requires determining the most appropriate valuation model, which is dependent on the terms and conditions of the grant. This estimate also requires determining the most appropriate inputs to the valuation model including the expected life of the share option, volatility and dividend yield and making assumptions about them. The assumptions and models used for estimating fair value for share-based payment transactions are disclosed in Note 6.

F. Income tax

Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective counties in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority.

Deferred tax assets are recognized for all carryforward of unused tax losses and unused tax credits and deductible temporary differences to the extent that it is probable that taxable profit will be available or there are sufficient taxable temporary differences against which the unused tax losses, unused tax credits or deductible temporary differences can be utilized. The amount of deferred tax assets determined to be recognized is based upon the likely timing and the level of future taxable profits and taxable temporary differences together with future tax planning strategies.

6. CONTENTS OF SIGNIFICANT ACCOUNTS

(1)Cash and cash equivalents

As of December 31,
2021	2020
\$569	\$592
449,418	187,681
55,360	200,160
\$505,347	\$388,433

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

	As of December 31,
	2021	2020
Mandatorily measured at fair value
through profit or loss:
Fund	\$-	\$35,047
Current	\$-	\$35,047
Non-current	-	-
Total	\$-	\$35,047

No financial assets at fair value through profit or loss was pledged as collateral.

(3) Financial assets at fair value through other comprehensive income

	As of December 31,
	2021	2020
(a)Equity instruments investments measured
at fair value through other
comprehensive income:
Listed companies stocks	\$95,277	\$68,294
Unlisted company stocks	35,990	45,962
Subtotal	131,267	114,256
Valuation adjustment	(21,997)	(29,297)
Total	\$109,270	\$84,959
Current	\$99,270	\$64,987
Non-current	10,000	19,972
Total	\$109,270	\$84,959

(b) No financial assets at fair value through other comprehensive income was pledged as collateral.

(c) In consideration of the Company's investment strategy, the Company disposed and derecognized partial equity instrument investments measured at fair value through other comprehensive income. Details on derecognition of such investments for the year ended December 31, 2021 and 2020 are as follow:

	For the year ended December 31,
	2021	2020
The fair value of the investments at
the date of derecognition	\$9,901	\$10,503
The cumulative gain or loss on
disposal reclassified from other	\$(72)	\$724
equity to retained earnings

(d) The Company's dividend income related to equity instrument investments measured at fair value through other comprehensive income for the year ended December 31, 2021 and 2020 are as follow:

	For the year ended December 31,
	2021	2020
Dividends recognized during the period	\$5,488	\$3,814

(4)Financial assets measured at amortized cost

	As of December 31,
	2021	2020
Time deposits	\$683,180	\$478,580
Restricted deposits	3,977	4,316
Corporate bond	100,000	-
Total	\$787,157	\$482,896
Current	\$684,979	\$480,730
Non-current	\$102,178	\$2,166

Please refer to Note 8 for more details on financial assets measured at amortized cost pledged as collateral.

(5)Notes receivable

As of December 31,
2021	2020
\$4,862	\$13
-	-
\$4,862	\$13

Notes receivables were not pledged.

The Company follows the requirement of IFRS9 to assess the impairment. Please refer to Note 6(19) for more details on loss allowance and Note 12 for details on credit risk.

	As of December 31,
	2021	2020
Accounts receivable, gross	\$228,286	\$190,941
Less: allowance against doubtful
accounts	(1,363)	(1,819)
Net of allowances	226,923	189,122
Accounts receivable - related parties,
gross	109,765	74,246
Less: allowance against doubtful
accounts	(919)	(904)
Net of allowances	108,846	73,342
Total accounts receivable, net	\$335,769	\$262,464

(6) Accounts receivable and accounts receivable - related parties, net

Accounts receivable were not pledged.

Accounts receivable are generally on 14-90 day terms. The total carrying amount as of December 31, 2021 and 2020 are NT\$338,051 thousand and NT\$265,187 thousand, respectively. Please refer to Note 6 (19) for more details on loss allowance of accounts receivable for the year ended December 31, 2021 and 2020. Please refer to Note 12 for more details on credit risk management.

The Company entered into factoring agreements with banks. Accounts receivable from selected customers are transferred to banks without recourse. Details of the agreed credit limits and accounts receivables transferred were as follows:

	Financial	Accounts receivable	Advance			Credit
	Institution	de-recognized	account	Interest Rate	Collateral	Limit
12/31/2021	Ctbc bank	\$18	\$-	-	None	Note
12/31/2020	Ctbc bank	\$1,988	\$-	-	None	Note

Note: The credit limits were US\$1,500 thousand as of December 31, 2021 and 2020.

(7)Inventories

A. Details of inventory:

	As of December 31,
	2021	2020
Supplies and Merchandises	\$319,054	\$184,039
Work in process	225,490	207,123
Finished goods	13,253	11,742
Total	\$557,797	\$402,904

B. For the year ended December 31, 2021 and 2020, the Company recognized NT\$1,649,650 thousand and NT\$1,198,837 thousand under the caption of costs of sale, respectively. The following items were also included in cost.

The Company recognized gains on recovery of inventory market decline because some of the inventories previously provided with market loss or obsolescence were disposed for the year ended December 31, 2021.

	For the year ended December 31,
Item	2021	2020
Loss (gain) from inventory market decline	\$(7,069)	\$9,035

C. No inventories were pledged.

(8)Investments accounted for under equity method

	As of December 31,
		2021		2020
	Carrying	Percentage of	Carrying	Percentage of
Investee Companies	amount	ownership (%)	amount	ownership (%)
Investments in subsidiaries:
Beijing Winmate Automation
Technology Co., Ltd.	\$6,415	100.00%	\$7,220	100.00%
TTX Canada Inc.	21,400	100.00%	19,088	100.00%
Winmate Communication US,
Inc.	36,809	100.00%	32,257	100.00%

English Translation of Parent-Company-Only Financial Statements and Footnotes Originally Issued in Chinese Winmate Inc.

Subtotal	64,624		58,565
Investments in associates:
TL Electronic GmbH	\$6,443	30.00%	\$6,148	25.00%
Maxkit Technology Co., Ltd.	15,760	33.33%	-	-%
Subtotal	22,203		6,148
Total	\$86,827		\$64,713

Notes to the Parent-Company-Only Financial Statements (Continued)

A.Investments in subsidiaries were present in the parent-company-only financial statements under the caption of investments accounted for under equity method or credit for investment accounted for the equity method. Valuation adjustment is made if deemed necessary.

B.The Company's investments accounted for under the equity method were not pledged.

C.The Group's investments in TL Electronic GmbH and Maxkit Technology Co., Ltd. are not individually material.The aggregate carrying amount of the Group's interests in TL Electronic GmbH and Maxkit Technology Co., Ltd. were NT\$22,203 thousand, NT\$6,148 thousand, as at December 31, 2021 and 2020, respectively. The aggregate financial information of the Group's investments in TL Electronic GmbH and Maxkit Technology Co., Ltd. are as follows:

	For the year ended December 31,
	2021	2020
Profit or loss from continuing operations	\$763	\$(1,270)
Other comprehensive income (post-tax)	(2,327)	74
Total comprehensive income	\$(1,564)	\$(1,196)

• D.On May 4, 2021, the Company's Board of Directors' meeting has determined to participate in the issurance of cash of Maxkit Technology Co., Ltd. amounted to NT\$15,000 thousand and acquired ownership of 33.33% in May 10, 2021.
• E.On May 4, 2021, the Company's Board of Directors' meeting has determined to participate in the issurance of cash of TL Electronic GmbH amounted to NT\$3,033 thousand and acquired ownership of 5% in July 1, 2021. And accumulate ownership of 30%.
• F.The associates had no contingent liabilities or capital commitments and were not pledged as collateral as at December 31, 2021and 2020, respectively.

(9)Property, plant and equipment

A.Property, plant and equipment for own-use

				Office	Other
	Land	Buildings	Machinery	Equipment	Equipment	Total
Cost:
As of 1/1/2021	\$722,272	\$234,230	\$40,298	\$65,036	\$176,076	\$1,237,912
Addition	-	-	1,364	2,417	13,682	17,463
Disposals	-	-	-	-	-	-
As of 12/31/2021	\$722,272	\$234,230	\$41,662	\$67,453	\$189,758	\$1,255,375
As of 1/1/2020	\$255,286	\$234,230	\$40,150	\$61,438	\$156,508	\$747,612
Addition	-	-	148	3,705	19,798	23,651
Disposals	-	-	-	(107)	(230)	(337)
Reclassification	466,986	-	-	-	-	466,986
As of 12/31/2021	\$722,272	\$234,230	\$40,298	\$65,036	\$176,076	\$1,237,912
Depreciation and impairment:
As of 1/1/2021	\$-	\$63,249	\$36,625	\$56,016	\$152,219	\$308,109
Depreciation	-	5,562	1,542	3,165	12,441	22,710
Disposals	-	-	-	-	-	-
As of 12/31/2021	\$-	\$68,811	\$38,167	\$59,181	\$164,660	\$330,819
As of 1/1/2020	\$-	\$57,687	\$34,611	\$53,259	\$141,251	\$286,808
Depreciation	-	5,562	2,014	2,864	11,198	21,638
Disposals	-	-	-	(107)	(230)	(337)
As of 12/31/2021	\$-	\$63,249	\$36,625	\$56,016	\$152,219	\$308,109
Net carrying amount:
As of 12/31/2021	\$722,272	\$165,419	\$3,495	\$8,272	\$25,098	\$924,556
As of 12/31/2020	\$722,272	\$170,981	\$3,673	\$9,020	\$23,857	\$929,803

B.No property, plant and equipment was pledged as collateral.

(10) Investment property

The Company's investment properties include both owned investment properties. The Company has entered into commercial property leases on its owned investment properties with terms of 1 year. These leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions.

	Land
Cost:
As of 1/1/2021	\$-
Additions from acquisitions	-
Classification	-
As of 12/31/2021	\$-
As of 1/1/2020	\$466,986
Additions from acquisitions	-
Classification	(466,986)
As of 12/31/2020	\$-
Net carrying amount as at::
12/31/2021	\$-
12/31/2020	\$-

No investment property were pledged.

(11)Intangible assets

	Computer software
Cost:
As of 1/1/2021	\$31,890
Additions – acquired separately	13,676
Derecognized upon retirement	(28,821)
As of 12/31/2021	\$16,745
As of 1/1/2020	\$9,230
Additions – acquired separately	28,675
Derecognized upon retirement	(6,015)
As of 12/31/2020	\$31,890

Notes to the Parent-Company-Only Financial Statements (Continued)

Amortization and Impairment:

As of 1/1/2021	\$12,629
Amortization	22,783
Derecognized upon retirement	(28,821)
As of 12/31/2021	\$6,591
As of 1/1/2020	\$4,561
Amortization	14,083
Derecognized upon retirement	(6,015)
As of 12/31/2020	\$12,629
Carrying amount, net:
As of 12/31/2021	\$10,154
As of 12/31/2020	\$19,261

Amounts of amortization recognized for intangible assets are as follows:

		For the year ended December 31,
Item	2021	2020
Operating expenses	\$22,783	\$14,083

(12)Other payables

	As of December 31,
	2021	2020
Employee benefits payable	\$146,500	\$124,297
Other payable	55,806	30,931
Total	\$202,306	\$155,228

(13)Bonds payable

A. The Company had no balance of the bonds payable as of December 31, 2020. The details of the bonds payable as of December 31, 2021 is as follows:

	As of
	12/31/2021
Liability component:
Unsecured domestic bonds payable	\$500,000
Discounts on bonds payable	(14,904)
Total	485,096
Less: current portion	-
Non-current portion	\$485,096
Embedded derivative	\$800
Equity component-conversion right	\$13,860

For the details of the gain or loss from valuation through profit or loss on embedded derivative - redemption, put options and the interest expense on the convertible bonds payable, please refer to Note 6 (22) to the consolidated financial statement.

• B. On March 22, 2021, the Company issued unsecured domestic convertible bonds. The terms of the bonds are as follows:
• (A) Issue amount: NTD 500,000 thousand
• (B) Issue date: March 22, 2021

(C) Issue price: Issued at par value

(D) Coupon rate: 0%

• (E) Period: March 22, 2021 to March 22, 2024
• (F)Settlement: A converting bond holder can convert bonds into the Company's stock or execute put option based on the Company's conversion rules. The Company can also buy back cancellation from bonds dealers. Otherwise, bonds are repayable at face value by cash when they mature. (G)Conversion period: The bondholders will have the right to convert their bonds at any time during the conversion period commencing 23 June,2021 (the 90th day following the closing date) and ending at the close of business on 22 March ,2024 (the matuitty Date), provided, however, that the conversion

	right during any closed period shall be suspended and the conversion
	period shall not include any such closed period, which means (i) the
	period during which the Company may be required to close its stock
	transfer books under ROC laws and regulations applicable from time to
	th trading day prior to the record time; (ii) the period beginning on the 15
	date for the distribution of stock or cash dividends, or subscription of
	new shares due to capital increase to the date on (and including) such
	record; (iii) the period beginning on the record date of a capital
	reduction to one day prior to the trading day on which the shares of the
	Company are reissued after such capital reduction;(iv) No request for
	conversion other than the starting date of the stop of conversion for the
	change of stock denomination to the day before the trading day before
	the start of the new stock exchange.
(H)Conversion price	The conversion price was originally at NT\$80 per share. The conversion
and adjustment:	price will be subject to adjustments upon the occurrence of certain
	events set out in the indenture.
(I)Redemption	Under the following circumstances, effective from three month after the
clauses:	issuance until 40 days to maturity, the Company may recall the bonds
	at par value:
	a. The closing price of the Company's common stock exceeds 30% of
	the last adjusted conversion price for a period of 30 consecutive business
	days.
	b. The balance of the Company's total bonds currently in circulation fall
	lower than 10% of par value.
(J) Put option of the	The bondholders can execute put option after two year from issuance
bondholders:	date (March 22, 2023). The Company should send through registered
	mail the "Notification of bondholder's put option" 40 days before the
	maturity date (February 10, 2023). (The list of bondholders who should
	receive the notification through registered mail is based on the register
	list 5 business days before mailing date. Investors who purchase the
	bonds after the mailing date are notified through announcement.) OTC
	(Over The Counter) should be notified by the Company and should
	announce the bondholder's put option; a written notification should be
	sent to the share transfer agent by bondholders 40 days after the OTC's
	announcement. The redemption value is the bonds face value plus
	interest. (Face value*0.5% after two year maturity period, the real yield

is 0.25%.) After accepting the redemption request, the Company should redeem the bonds by cash within 5 business days after the maturity date.

(14)Post-employment benefits

Defined contribution plan

The Company and its domestic subsidiaries adopt a defined contribution plan in accordance with the Labor Pension Act of the R.O.C. Under the Labor Pension Act, the Company and its domestic subsidiaries will make monthly contributions of no less than 6% of the employees' monthly wages to the employees' individual pension accounts. The Company and its domestic subsidiaries have made monthly contributions of 6% of each individual employee's salaries or wages to employees' pension accounts.

Expenses under the defined contribution plan for the year ended December 31, 2021 and 2020 were NT\$10,714 thousand and NT\$10,348 thousand, respectively.

Defined benefits plan

The Company adopts a defined benefit plan in accordance with the Labor Standards Act of the R.O.C. The pension benefits are disbursed based on the units of service year and the average salaries in the last month of the service year. Two units per year are awarded for the first 15 year of services while one unit per year is awarded after the completion of the 15th year. The total units shall not exceed 45 units. Under the Labor Standards Act, the Company contributes an amount equivalent to 2% of the employees' total salaries and wages on a monthly basis to the pension fund deposited at the Bank of Taiwan in the name of the administered pension fund committee.

If the amount is inadequate to pay pensions calculated for workers retiring in the same year, the Company and its domestic subsidiaries will make up the difference in one appropriation before the end of March the following year.

The Ministry of Labor is in charge of establishing and implementing the fund utilization plan in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund. The pension fund is invested in-house or under mandation, based on a passive-aggressive investment strategy for long-term profitability. The Ministry of Labor establishes checks and risk management mechanism based on the assessment of risk factors including market risk, credit risk and liquidity risk, in order to maintain adequate manager flexibility to achieve targeted return without over-exposure of risk. With regard to utilization of the pension fund, the minimum earnings in the annual distributions on the final financial statement shall not be less than the earnings attainable from the amounts accrued from twoyear time deposits with the interest rates offered by local banks. Treasury Funds can be used to cover the deficits after the approval of the competent authority. As the Company does not participate in the operation and management of the pension fund, no disclosure on the fair value of the plan assets categorized in different classes could be made in accordance with paragraph 142 of IAS 19. The Company expects to contribute NT\$423 to its defined benefit plan during the 12 months beginning after December 31, 2021.

As of December 31, 2021 and 2020, the maturities of the Group's defined benefit plan were both expected in 2030.

Pension costs recognized in profit or loss is as follows:

	For the year ended December 31,
	2021	2020
Current period service costs	\$305	\$292
Net interest expense (income)	29	44
Total	\$334	\$336

Reconciliation in the defined benefit obligation and fair value of plan assets are as follows:

	As of
	12/31/2021	12/31/2020	1/31/2020
Defined benefit obligation	\$20,010	\$19,609	\$17,315
Plan assets at fair value	(14,364)	(13,628)	(12,640)
Other non-current liabilities – net defined benefit liability	\$5,646	\$5,981	\$4,675

Reconciliation of liability (asset) of the defined benefit liability is as follows:

	Present value		Net defined
	of defined		benefit
	benefit	Fair value of	liability
	obligation	plan assets	(asset)
As of January 1, 2020	\$17,315	\$(12,640)	\$4,675
Current period service costs	292	-	292
Net interest expense (income)	173	(129)	44
Subtotal	465	(129)	336
Remeasurement on net defined benefit
liability/assets:
Actuarial gains and losses arising from
changes in demographic assumptions	70	-	70
Actuarial gains and losses arising from
changes in financial assumptions	1,435	-	1,435
Experience adjustments	324	-	324
Re-measurement on defined benefit assets	-	(375)	(375)
Subtotal	1,829	(375)	1,454
Contributions by employer	-	(484)	(484)
As of December 31, 2020	19,609	(13,628)	5,981
Current period service costs	305	-	305
Net interest expense (income)	98	(69)	29
Subtotal	403	(69)	334
Remeasurement on net defined benefit
liability/assets:
Actuarial gains and losses arising from
changes in demographic assumptions	637	-	637
Actuarial gains and losses arising from
changes in financial assumptions	(358)	-	(358)
Experience adjustments	(281)	-	(281)
Re-measurement on defined benefit assets	-	(172)	(172)
Subtotal	(2)	(172)	(174)
Contributions by employer	-	(495)	(495)
As of December 31, 2021	\$20,010	\$(14,364)	\$5,646

The following siginificant acturial assumptions are used to determine the present value of the defined benefit obligation:

	As of December 31,
	2021	2020
Discount rate	0.625%	0.50%
Expected rate of salary increases	2.75%	2.75%

Sensitivity analysis:

	For the year ended December 31,
	2021 2020
	Increase	Decrease	Increase	Decrease
	defined	defined	defined	defined
	benefit	benefit	benefit	benefit
	obligation	obligation	obligation	obligation
Discount rate increased 0.25%	\$-	\$(19,300)	\$-	\$(18,874)
Discount rate decreased 0.25%	20,756	-	20,381	-
Expected salary increased 0.25%	20,728	-	20,352	-
Expected salary decreased 0.25%	-	(19,322)	-	(18,898)

For the purpose of sensitivity analysis above, the Company calculated the impact on defined benefit obligation due to a reasonable and feasible change of one single assumption (i.e. discount rate or expected salary level) with other assumptions remaining equal. Please note that the sensitivity analysis has its limitation due to the co-relation between different actuarial assumptions and the rarity that only one assumption changes at a time.

The method used in the analysis is consistent for both current and prior year.

(15)Provisions

	Warranties
As of 1/1/2021	\$1,492
Arising during the period	2,559
Utilized and Unused provision reversed	(1,028)
As of 12/31/2021	\$3,023

As of 1/1/2020	\$-
Arising during the period	1,492
Utilized and Unused provision reversed	-
As of 12/31/2020	\$1,492

Notes to the Parent-Company-Only Financial Statements (Continued)

Warranties

A provision is recognized for expected warranty claims on products sold, based on past experience, management's judgement and other known factors.

(16)Equities

A. Common stock

As of December 31, 2021 and 2020 , the Company's authorized capital was NT\$1,000,000 thousand, The Company's issued capital was NT\$725,060 thousand and NT\$723,660 thousand as of December 31, 2021 and 2020, respectively, each at a par value of NT\$10. Each share has one voting right and a right to receive dividends.

Among the employee stock options issued by the Company, 100 thousand options were exercised and approved by the board of directors' meeting on January 26, 2021. The issuance process for 100 thousand shares was completed through the authority on January 26, 2021.

Among the employee stock options issued by the Company, 10 thousand options were exercised and approved by the board of directors' meeting on May 4, 2021. The issuance process for 10 thousand shares was completed through the authority on May 4, 2021.

Among the employee stock options issued by the Company, 30 thousand options were exercised and approved by the board of directors' meeting on November 2, 2021. The issuance process for 30 thousand shares was completed through the authority on November 2, 2021.

B. Capital surplus

	As of December 31,
	2021	2020
Additional paid-in capital	\$776,440	\$845,637
Employee stock option	614	1,349
Share options	13,860	-
Other	10,251	10,251
Total	\$801,165	\$857,237

According to the Company Act, the capital surplus shall not be used except for making good the deficit of the company. When a company incurs no loss, it may distribute the capital reserves related to the income derived from the issuance of new shares at a premium or income from endowments received by the company. The distribution could be made in cash or in the form of dividend shares to its shareholders in proportion to the number of shares being held by each of them.

C. Appropriation of earnings and dividend policies

(a)Retained earnings

According to the Company's Articles of Incorporation, current year's earnings, if any, shall be distributed in the following order:

• I. Payment of tax;
• II.Making up loss for preceding year;
• III.Setting aside 10% for legal reserve, except for when accumulated legal reserve has reached the company's paid-in capital.
• IV.Appropriating or reversing special reserve by government officials or other regulation; and
• V.The distribution of the remaining portion, in addition to the previous year's unappropriated earnings, if any, will be recommended by the Board of Directors and resolved in shareholders' meeting.

(b)Dividend policies

The Company's dividend policy shall be determined pursuant to the factors, such as long-term business development, capital requirement and overall profitability, as well as shareholders' interests. The distribution of shareholders cash dividend shall not be lower than 10% of the total dividend. The Board of Directors shall make the distribution proposal annually and present it at the shareholders' meeting for final approval.

(c)Legal reserve

According to the Company Act, legal reserve shall be set aside until such amount equal total authorized capital. Legal reserve can be used to offset deficits. If the Company does not incur any loss, the portion of legal reserve exceeding 25% of the paid-in capital may be distributed to shareholders by issuing new shares or by cash in proportion to the number of shares held by each shareholder.

(d)Special reserve

Following the adoption of T-IFRS, the FSC on March 31, 2021 issued Order No. Financial-Supervisory-Securities-Corporate-1090150022, which sets out the following provisions for compliance:

On a public company's first-time adoption of the IFRS, for any unrealized revaluation gains and cumulative translation adjustments (gains) recorded to shareholders' equity that the company elects to transfer to retained earnings by application of the exemption under IFRS 1, the company shall set aside special reserve. For any subsequent use, disposal or reclassification of related assets, the company can reverse the special reserve by proportion and transfer to retained earnings.

The Company did not incur any special reserve upon the first-time adoption of T-IFRS.

(e)The stockholders' meeting of the Company in 2021 was postponed due to the impact of the Covid-19 pandemic. The distribution of earnings reached the statutory approval threshold through electronic voting by June 30, 2021. The appropriation of earnings for 2021 and 2020 were approved by Board of Directors' meetings and stockholders' meeting on February 22, 2022 and July 15, 2021, respectively. The details of the distributions are as follows:

				Dividend per share
	Appropriation of earnings		(in NT\$)
	2021	2020	2021	2020
Legal reserve	\$35,480	\$25,562
Special reserve	(3,323)	9,230
Cash dividend	253,886	217,404	\$3.50	\$3.00
Total	\$286,043	\$252,196

The capital surplus cash payment for 2021 and 2020 amounting NT\$72,539 thousand and NT\$72,468 thousand was approved by the Board of Directors' meetings and stockholders' meeting on February 22, 2022 and July 15, 2021, respectively.

Please refer to Note 6(21) for details on employees' compensation and remuneration to directors and supervisors.

(17)Share-based payment

Certain employees of the Company are entitled to share-based payment as part of their remunerations; services are provided by the employees in return for the equity instruments granted. These plans are accounted for as equity-settled share-based payment transactions.

A. Share-based payment plan for employees of the parent entity

In March 2017, the Company issued employee stock option of 750 units to qualified employees of the Company. One unit of stock option can be used to subscribe 1,000 shares of the Company's common shares. The options are valid for five year and exercisable at the certain percentage subsequent to the second anniversary of grant date. The options are granted at an exercise price equal to the closing price of the Company's common shares listed on the Taiwan Exchange Corporation("TWSE") on the grant date. The exercise price will be subject to the adjustments upon occurrence of certain events of changes in the company's common shares.

The relevant details of the aforementioned share-based payment plan are as follows:

	Total number of share options	Exercise price of share
Date of grant	granted (in thousands)	options (NT\$)
March 7,2017	750	\$46.9

The following table contains further details on the aforementioned share-based payment plan:

	For the year ended December 31,
	2021		2020
		Weighted		Weighted
		average		average
	Number of	exercise price	Number of	exercise price
	share options	of share	share options	of share
	outstanding	options	outstanding	options
	(in thousands)	(NT\$)	(in thousands)	(NT\$)
Outstanding at beginning of
period	192	\$46.9	479	\$49.4
Exercised at end of period	(73)	44.4	(278)	49.4
Expired at end of period	-	-	(9)	49.4
Outstanding at end of period	119	44.4	192	46.9
Exercisable at end of period	119	44.4	192	46.9
For share options granted during
the period, weighted average
fair value of those options at
the measurement date (NT\$)	-		-

The information on the outstanding share options as of December 31, 2021 and 2020, is as follows:

		Weighted average
	Range of exercise	remaining contractual
	price	life (Year)
As of 31 December 2021 share options
outstanding at the end of the period	\$44.4	0.17
As of 31 December 2020 share options
outstanding at the end of the period	\$46.9	1.17

B. The expense recognized for employee services received is shown in the following table:

	For the year ended December 31,
	2021	2020
Total expense arising from equity-settled share-based
payment transactions	\$-	\$92

(18)Operating revenue

	For the year ended December 31,
	2021	2020
Revenue from contracts with customers
Sale of goods	\$2,390,676	\$1,753,414
Revenue arising from rendering of services	41,155	52,920
Total	\$2,431,831	\$1,806,334

A.Disaggregation of revenue

	For the year ended December 31,
	2021	2020
Revenue from contracts with customers
Sale of goods	\$2,390,676	\$1,753,414
Revenue arising from rendering of services	41,155	52,920
Total	\$2,431,831	\$1,806,334

The timing for revenue recognition:
At a point in time	\$2,431,831	\$1,806,334

B.Contract balances

(a)Contract liabilities

	As of December 31,
	2021	2020
Sales of goods	\$49,633	\$38,104

The significant changes in the Group's balances of contract liabilities for the year ended December 31, 2021 and 2020 are as follows:

	For the year ended December 31,
	2021	2020
The opening balance transferred to revenue	\$(30,063)	\$(21,830)
Increase in receipts in advance during the period	41,592	33,222
(excluding the amount incurred and transferred to

revenue during the period)

(19)Expected credit losses (gains)

	For the year ended December 31,
	2021	2020
Operating expenses – Expected credit losses/(gains)
Account receivables	\$666	\$825

Please refer to Note 12 for more details on credit risk.

The Group measures the loss allowance of its trade receivables (including note receivables and trade receivables) at an amount equal to lifetime expected credit losses. The assessment of the Group's loss allowance are as follow:

A. The Group considers the grouping of trade receivables by counterparties' credit rating, by geographical region and by industry sector and its loss allowance is measured by using a provision matrix. Details are as follow:

English Translation of Parent-Company-Only Financial Statements and Footnotes Originally Issued in Chinese Winmate Inc. Notes to the Parent-Company-Only Financial Statements (Continued)

As of 12/31/2021

			Past due
	Neither				91-120
	past due	<=30 days	31-60 days	61-90 days	days	>=121days	Total
Gross carrying amount	\$295,016	\$26,039	\$12,695	\$9,052	\$111	\$-	\$342,913
Loss ratio	0.17%	0.90%	6.38%	8.20%	14.41%	100%
Lifetime expected credit losses	(479)	(235)	(810)	(742)	(16)	-	(2,282)
Subtotal	\$294,537	\$25,804	\$11,885	\$8,310	\$95	\$-	\$340,631

As of 12/31/2020

			Past due
	Neither				91-120
	past due	<=30 days	31-60 days	61-90 days	days	>=121days	Total
Gross carrying amount	\$248,127	\$8,594	\$4,016	\$3,456	\$-	\$1,007	\$265,200
Loss ratio	0.09%	4.68%	2.29%	28.85%	19.19%	100%
Lifetime expected credit
losses	(225)	(402)	(92)	(997)	-	(1,007)	(2,723)
Subtotal	\$247,902	\$8,192	\$3,924	\$2,459	\$-	\$-	\$262,477

B. The movement in the provision for impairment of note receivables and trade receivables during the year ended December 31, 2021 and 2020 are as follows:

	Account
	receivables	Total
Beginning balance as of 1/1/2021	\$2,723	\$2,723
Addition/(reversal) for the current period	666	666
Write off (uncollectible)	(1,107)	(1,107)
Ending balance as of 12/31/2021	\$2,282	\$2,282
	Account
	receivables	Total
Beginning balance as of 1/1/2020	\$1,898	\$1,898
Addition/(reversal) for the current period	825	825
Ending balance as of 12/31/2020	\$2,723	\$2,723

(20)Leases

A. Company as a lessee

The Company leases various properties, including buildings, and transportation equipment. These leases terms range from 1 to 4 year. The Company may not be allowed to privately lend, sublease, sell, use by others in other disguised form, or transfer the lease to another person.

The effect that leases have on the financial position, financial performance and cash flows of the Company are as follow:

(a) Amounts recognized in the balance sheet

a. Right-of-use asset

	As of December 31,
	2021	2020
Buildings	\$719	\$2,445
Transportation equipments	240	1,198
Total	\$959	\$3,643

b. Lease liability

	As of December 31,
	2021	2020
Lease liability	\$1,005	\$3,759
Current	\$1,005	\$2,754
Non-current	-	1,005
Total	\$1,005	\$3,759

Please refer to Note 6(22) for the interest on lease liability recognized during the year ended December 31, 2021 and 2020 and refer to Note 12(5) Liquidity Risk Management for the maturity analysis for lease liabilities as at December 31, 2021 and 2020.

B. Amounts recognized in the statement of profit or loss

Depreciation charge for right-of-use assets

	For the year ended December 31,
	2021	2020
Buildings	\$1,726	\$1,726
Transportation equipment	958	959
Total	\$2,684	\$2,685

C. Income and costs relating to leasing activities

	For the year ended December 31,
	2021	2020
The expenses relating to short-term leases	\$1,017	\$1,100
The expenses relating to leases of low-value
assets (Not including the expenses relating
to short-term leases of low-value assets)	251	330
Total	\$1,268	\$1,430

D. Cash outflow relating to leasing activities

During the years ended December 31, 2021 and 2020, the Group's total cash outflow for leases amounting to NT\$4,108 thousand and NT\$4,271 thousand, respectively.

(21)Summary statement of employee benefits, depreciation and amortization by function is as follows:

	For the year ended December 31,
Function		2021			2020
	Cost of	Operating		Cost of	Operating
Nature	goods sold	expense	Total	goods sold	expense	Total
Employee benefit
Salaries & wages	\$115,031	\$186,411	\$301,442	\$103,180	\$168,539	\$271,719
Labor and health insurance	10,496	13,584	24,080	9,411	12,246	21,657
Pension	4,126	6,922	11,048	3,904	6,780	10,684
Directors' remuneration	-	5,931	5,931	-	4,155	4,155

Other employee benefit	11,929	8,704	20,633	12,487	9,309	21,796
Depreciation	21,314	4,080	25,394	19,926	4,397	24,323
Amortization	35	22,748	22,783	36	14,047	14,083

Notes to the Parent-Company-Only Financial Statements (Continued)

• (1) The headcounts of the Company amounted to 387 and 370, respectively, as of December 31, 2021 and 2020. Among the Company's directors, there were 5 who were not the employees, respectively.
• (2) Companies who have been listed on Taiwan Stock Exchange or Taiwan Over The Counter Securities Exchange should disclose the following information:
• 1.Average employee benefits of 2021 and 2020 are NT\$935 thousand and NT\$893 thousand, respectively.
• 2.Average salaries of 2021 and 2020 are NT\$789 thousand and NT\$744 thousand, respectively.
• 3.Change in average salaries are 6%.
• 4.Supervisor's remuneration of 2021 and 2020 are NT\$2,547 thousand and NT\$1,806 thousand, respectively.
• 5.The salary and remuneration policy of the Company:

According to Articles 23 of the Company's Articles of Incorporation, between 5% to 15% of profit of the current year is distributable as employees' compensation and no higher than 2% of profit of the current year is distributable as remuneration to directors and report to the stockholders' meeting. In addition to the basic salaries, employees' annual salaries are also adjusted based on the Company's performance to motivate and retain outstanding employees. In addition, according to Articles 20 of the Company's Articles of Incorporation, All of the directors and supervisors could able to receive travel fees and rewards and it is allocated according to the Company profit situation and level of contribution referencing the industry standards.And according to Articles 21 of the Company's Articles of Incorporation, remuneration of the manager is according to Articles 29 of the company law to deal with.

(3) According to the resolution, between 5% to 15% of profit of the current year is distributable as employees' compensation and no higher than 2% of profit of the current year is distributable as remuneration to directors and supervisors. However, the Company's accumulated losses shall have been covered.

The Company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, have the profit distributable as employees' compensation in the form of shares or in cash; and in addition, a report of such distribution is submitted to the shareholders' meeting. Information on the Board of Directors' resolution regarding the employees' compensation and remuneration to directors and supervisors can be obtained from the "Market Observation Post System" on the website of the TWSE.

Based on profit, the Company estimated the amounts of the employees' compensation and remuneration to directors for the year ended December 31, 2021 and 2020 amounted to NT\$49,626 thousand, NT\$7,888 thousand, and NT34,791 thousand, NT\$5,421 thousand respectively, recognized as employee benefits. The Company's Board of Directors' meeting has determined the employees' compensation and directors' remuneration, all in cash, to be NT\$49,626 thousand, NT\$7,888 thousand, respectively for the year ended December 31,2021, in a meeting held on February 22, 2022. No material differences exist between the estimated amount and the actual distribution of the employee compensation and remuneration to directors and supervisors for the year ended December 31, 2021.

The Company's Board of Directors' meeting has determined the employees' compensation and directors' remuneration, all in cash, to be NT\$34,791 thousand and NT\$5,421 thousand, respectively for the year ended December 31,2020, in a meeting held on February 25, 2021. No material differences exist between the estimated amount and the actual distribution of the employee compensation and remuneration to directors and supervisors for the year ended December 31, 2020.

(22)Non-operating incomes and expenses

A. Other incomes

	For the year ended December 31,
	2021	2020
Rental income	\$-	\$154
Interest income
Financial assets measured at amortized cost	5,496	5,945
Dividend income	5,488	3,814
Other	11,203	11,578
Total	\$22,187	\$21,491

B. Other gains and losses

		For the year ended December 31,
	2021	2020
Gains (losses) on disposal of investments	\$79	\$205
Foreign exchange gains (losses), net	(14,196)	(7,330)
Gains (losses) on financial assets at fair value
through profit or loss
Funds	(42)	20
Forward foreign exchange	2,547	685
Bonds	400	-
Other	(4,153)	(993)
Total	\$(15,365)	\$(7,413)

C. Finance costs

	For the year ended December 31,
	2021	2020
Interest on borrowings from bank	\$-	\$6
Interest on lease liabilities	86	192
Interest on bonds payable	5,144	-
Total	\$5,230	\$198

(23)Components of other comprehensive income (OCI)

For the year ended 12/31/2021:

	Arising	Reclassificati		Income tax
	during the	on during the		benefit	OCI,
	period	period	Subtotal	(expense)	Net of tax
Items that will not be reclassified to
profit or loss in subsequent periods:
Actuarial gains or losses on
defined benefit plans	\$174	\$-	\$174	\$(35)	\$139
Unrealized gains (losses) from
equity instruments
investments measured at fair
value through other
comprehensive income	7,300	(10,044)	(2,744)	-	(2,744)
Items that may reclassified to profit
or loss in subsequent period:
Related shares of other
comprehensive income from
the subsidiaries, associates and
joint ventures under the equity
method	(4,971)	-	(4,971)	994	(3,977)
Total	\$2,503	\$(10,044)	\$(7,541)	\$959	\$(6,582)

For the year ended 12/31/2020:

	Arising	Reclassificati		Income tax
	during the	on during the		benefit	OCI,
	period	period	Subtotal	(expense)	Net of tax
Items that will not be reclassified to
profit or loss in subsequent periods:
Actuarial gains or losses on
defined benefit plans	\$(1,454)	\$-	\$(1,454)	\$291	\$(1,163)
Unrealized gains (losses) from
equity instruments
investments measured at fair
value through other
comprehensive income	(7,209)	724	(6,485)	-	(6,485)
Items that may be reclassified to
profit or loss in subsequent period:
Related shares of other
comprehensive income from
the subsidiaries, associates and
joint ventures under the equity
method	(2,526)	-	(2,526)	505	(2,021)
Total	\$(11,189)	\$724	\$(10,465)	\$796	\$(9,669)

(24)Income tax

A. The major components of income tax expense (income) are as follows:

Income tax expense (benefit) recognized in profit or loss

	For the year ended December 31,
	2021	2020
Current income tax expense (income):
Current income tax expense	\$84,389	\$60,703
Adjustments in respect of current income	(14,312)	(9,642)
tax of prior periods

English Translation of Parent-Company-Only Financial Statements and Footnotes Originally Issued in Chinese Winmate Inc.

Notes to the Parent-Company-Only Financial Statements (Continued)

Deferred tax expense (income):
Deferred tax expense (income) relating to	2,915	(269)
origination and reversal of temporary
differences
Total income tax expense	\$72,992	\$50,792

Income tax relating to components of other comprehensive income

	For the year ended December 31,
	2021	2020
Deferred tax expense (income):
Remeasurements of defined benefit plans	\$35	\$(291)
Related shares of other comprehensive
income from the subsidiaries, associates
and joint ventures under the equity
method	(994)	(505)
Total	\$(959)	\$(796)

B. A reconciliation between tax expense and the product of accounting profit multiplied by applicable tax rates is as follows:

	For the year ended December 31,
	2021	2020
Accounting profit before tax from continuing
operations	\$437,698	\$306,854
Tax payable at the enacted tax rates	\$87,539	\$61,371
Tax effect of expenses not deductible for tax purposes	65	(937)
Tax effect of deferred tax assets/liabilities	(300)	-
Adjustment in respect of current income
tax of prior periods	(14,312)	(9,642)
Total income tax expense recognized in profit
or loss	\$72,992	\$50,792

C. Deferred tax assets (liabilities) relate to the following:

For the year ended December 31, 2021

			Deferred
			tax income
		Deferred	(expense)
		tax income	recognized
		(expense)	in other
	Beginning	recognized	comprehen	Ending balance
	balance as of	in profit or	sive	as of December
	January 1, 2021	loss	income	31, 2021
Temporary differences
Unrealized loss on inventory valuation	\$5,291	\$(1,414)	\$-	\$3,877
Unrealized exchange loss(gain)	394	(421)	-	(27)
Expected credit losses	677	(22)	-	655
Unrealized gross profit	2,727	(69)	-	2,658
Net defined benefit plans	1,197	(32)	(35)	1,130
Investments accounted for using equity method	16,379	(1,741)	-	14,638
Salaries payable	2,008	180	-	2,188
Exchange differences arising on
translation of foreign	2,204	-	994	3,198
operations
Provisions	-	604	-	604
Deferred tax(expense)/ income		\$(2,915)	\$959
Net deferred tax assets/(liabilities)	\$30,877			\$28,921
Reflected in balance sheet as follows:
Deferred tax assets	\$30,877			\$28,948
Deferred tax liabilities	\$-			\$(27)

	For the year ended December 31, 2020
--	--------------------------------------	--	--

			Deferred
			tax income
		Deferred	(expense)
		tax income	recognized
		(expense)	in other
	Beginning	recognized	comprehen	Ending balance
	balance as of	in profit or	sive	as of December
	January 1, 2020	loss	income	31, 2020
Temporary differences
Unrealized loss on inventory valuation	\$4,847	\$444	\$-	\$5,291
Unrealized exchange loss(gain)	1,606	(1,212)	-	394
Expected credit losses	630	47	-	677
Unrealized gross profit	2,710	17	-	2,727
Net defined benefit plans	935	(29)	291	1,197
Investments accounted for using equity method	15,600	779	-	16,379
Salaries payable	1,785	223	-	2,008
Exchange differences arising on
translation of foreign	1,699	-	505	2,204
operations
Deferred tax(expense)/ income		\$269	\$796
Net deferred tax assets/(liabilities)	\$29,812			\$30,877
Reflected in balance sheet as follows:
Deferred tax assets	\$29,812			\$30,877
Deferred tax liabilities	\$-			\$-

D. As of December 31, 2021, the assessment status of income tax returns of the Company was as follows:

	The assessment of income tax returns
The Company	Assessed and approved up to 2019

(25)Earnings per share

Basic earnings per share is calculated by dividing net profit for the year attributable to the common shareholders of the parent entity by the weighted average number of common shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the parent entity (after adjusting any influences) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

		For the year ended December 31,
	2021	2020
A. Basic earnings per share
Net income available to common
shareholders of the parent (in NT\$'000)	\$364,706	\$256,062
Weighted average number of common
shares outstanding (in thousand shares)	72,470	72,216
Basic earnings per share (in NT\$)	\$5.03	\$3.55
B. Diluted earnings per share
Net income available to common
shareholders of the parent (in NT\$'000)	\$364,706	\$256,062
Interest expense on convertible bonds	4,115	-
Valuation adjustment of financial assets at
fair value through profit or loss	(320)	-
Profit attributable to ordinary equity
holders of the Company after dilution (in
thousand NT\$'000)	\$368,501	\$256,062
Weighted average number of common
shares outstanding (in thousand shares)	72,470	72,216
Effect of dilution:
Employee bonus – stock (in thousand
shares)	701	537
Employee stock options (in thousands)	46	76

English Translation of Parent-Company-Only Financial Statements and Footnotes Originally Issued in Chinese Winmate Inc. Notes to the Parent-Company-Only Financial Statements (Continued)

Convertible bonds (in thousands)	6,597	-
Weighted average number of common
shares outstanding after dilution (in
thousand shares)	79,814	72,829
Diluted earnings per share (in NT\$)	\$4.62	\$3.52

No other transactions that would significantly change the outstanding common shares or potential common shares incurred during the period after reporting date and up to the approval date of financial statements.

7. RELATED PARTY TRANSACTIONS

(1)Deal with related parties as of the end of the reporting period

Related parties and Relationship

Related parties	Relationship
ADVANTECH CO., LTD.	Individuals with significant influence on the combined company
ONYX HEALTHCARE INC.	Individuals with significant influence on the combined company
TL Electronic GmbH	Associate
Maxkit Technology Co., Ltd.	Associate
Beijing Winmate Automation	Subsidiary
Technology Co., Ltd.
TTX Canada Inc.	Subsidiary
Winmate Communication US,	Subsidiary
Inc.

(2)Significant transactions with related parties

A. Sales to

	For the year ended December 31,
	2021	2020
ONYX HEALTHCARE INC.	\$3,989	\$2,651
TL Electronic GmbH	69,241	62,325
Maxkit Technology Co., Ltd.	257	-

English Translation of Parent-Company-Only Financial Statements and Footnotes Originally Issued in Chinese Winmate Inc. Notes to the Parent-Company-Only Financial Statements (Continued)

Beijing Winmate Automation	8,165	4,911
Technology Co., Ltd.
TTX Canada Inc.	29,118	21,185
Winmate Communication US, Inc.	214,244	109,197
Total	\$325,014	\$200,269

The sales price and collection terms to related parties were not significantly different from those of sales to third parties.

B. Purchases

		For the year ended December 31,
	2021	2020
ADVANTECH CO., LTD.	\$13,849	\$5,411
ONYX HEALTHCARE INC.	5	1
Winmate Communication US, Inc.	7,827	5,452
Total	\$21,681	\$10,864

The purchases price and payment terms to related parties were not significantly different from those of purchases to third parties.

C. Accounts receivable - related parties

	As of December 31,
	2021	2020
ONYX HEALTHCARE INC.	\$1,282	\$146
TL Electronic GmbH	29,570	24,852
Beijing Winmate Automation	2,630	99
Technology Co., Ltd.
TTX Canada Inc.	6,293	5,291
Winmate Communication US, Inc.	69,990	43,858
Total	109,765	74,246
Less: loss allowance	(919)	(904)
Net	\$108,846	\$73,342

D. Account payable- related parties

		As of December 31,
	2021 2020
ADVANTECH CO., LTD.	\$3,444	\$99
Winmate Communication US, Inc.	78	102
Total	\$3,522	\$201

E. Other payables - related parties

As of December 31,
2021	2020
\$108	\$111
1,414	1,475
55	883
-	12
\$1,577	\$2,481

F. Operating expense

	For the year ended December 31,
	2021
ADVANTECH CO., LTD.	\$124	\$93
TL Electronic GmbH	5,921	5,406
TTX Canada Inc.	2,299	2,086
Winmate Communication US, Inc.	10,314	5,338
Total	\$18,658	\$12,923

G. Other revenue

	For the year ended December 31,
	2020 2021
TTX Canada Inc.	\$226	\$280
Winmate Communication US, Inc.	-	6
Total	\$226	\$286

H. Salaries and rewards to key management of the Company

		For the year ended December 31,
	2021	2020
Short-term employee benefits	\$45,102	\$40,705
Post-employee benefits	374	486
Total	\$45,476	\$41,191

8. LEDGED ASSETS

The following assets of the Group are pledged as collaterals:

	Carrying Amount As at
	12/31/2021	12/31/2020	Purpose
Financial assets measured at	\$2,178	\$2,166	Security deposit to
amortized cost			custom authority
Financial assets measured at amortized cost	1,799	2,150	Reserve account
Total	\$3,977	\$4,316

9. SIGNIFICANT CONTINGENCIES AND UNRECOGNIZED CONTRACT COMMITMENTS

As of December 31, 2021, the Group's outstanding contracts relating to construction of property, plant and equipment were as follows:

The nature of the contract	Contract amount	Amount paid	Outstanding balance
Construction contracts	\$573,500	\$66,276	\$507,224

Amounts paid were recorded under prepaid equipment.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT SUBSEQUENT EVENT

None.

12. OTHERS

(1) Categories of financial instruments

Financial assets

	As of December 31,
	2021	2020
Financial assets at fair value through
profit or loss	\$-	\$35,047
Financial assets at fair value through
other comprehensive income	109,270	84,959
Financial assets measured at amortized
cost (Note)	1,649,295	1,147,669
Total	\$1,758,565	\$1,267,675

Financial liabilities

	2021	2020
Financial liabilities at fair value through
profit or loss:
Financial liability held for trading	\$800	\$-
Financial liabilities at amortized cost:
Accounts payable	374,363	253,990
Other payables	203,883	157,709
Bonds payable	485,096	-
Lease liabilities	1,005	3,759
Total	\$1,065,147	\$415,458

Note: Including cash and cash equivalents, financial assets measured at amortized cost, note receivables, accounts receivables and other receivables.

(2) Financial risk management objectives and policies

The Company's principal financial risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activates. The Company identifies, measures, and manages the risks based on its policy and risk preferences.

The Company has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant transactions, due approval process by the Board of Directors and Audit Committee must be carried out based on related protocols and internal control procedures. The Company complies with its financial risk management policies always.

(3) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market risk comprises currency risk, interest rate risk and other price risk (e.g. equity instruments).

In practice, it is rarely the case that a single risk variable will change independently from other risk variables. There are usually interdependencies between risk variables. However, the sensitivity analysis disclosed below does not take into account the interdependencies between risk variables.

Foreign currency risk

The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities (when revenue or expense are denominated in a different currency from the Company's functional currency) and the Company's net investments in foreign subsidiaries.

The Company has certain foreign currency receivables to be denominated in the same foreign currency with certain foreign currency payables, therefore natural hedge is received. The Company also uses forward contracts to hedge the foreign currency risk on certain items denominated in foreign currencies. Hedge accounting is not applied as they did not qualify for hedge accounting criteria. Furthermore, as net investments in foreign subsidiaries are for strategic purposes, they are not hedged by the Company.

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Company's profit is performed on significant monetary items denominated in foreign currencies as at the end of the reporting period. The Company's foreign currency risk is mainly related to the volatility in the exchange rates for foreign currency US dollars and foreign currency EUR dollars.

The information of the sensitivity analysis is as follows:

If NT dollars appreciates/depreciates against US dollars by 3%, net income (loss) for the year ended December 31, 2021 and 2020 would decrease/increase by NT\$10,444 thousand and NT\$9,218 thousand, respectively.

If NT dollars appreciates/depreciates against EUR dollars by 3%, net income (loss) for the year ended December 31, 2021 and 2020 would decrease/increase by NT\$2,471 thousand and NT\$3,432 thousand, respectively.

Equity price risk

The fair value of the Group's listed and unlisted equity securities and conversion rights of the Euro-convertible bonds issued are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Group's listed and unlisted equity securities are classified under financial assets measured at fair value through profit or loss and financial assets measured at fair value through other comprehensive income, while conversion rights of the Euro-convertible bonds issued are classified as financial liabilities at fair value through profit or loss as it does not satisfy the definition of an equity component.

The Group manages the equity price risk through diversification and placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Group's senior management on a regular basis. The Group's Board of Directors reviews and approves all equity investment decisions.

At the reporting date, a change of 1% in the price of the listed companies stocks classified as equity instruments investments measured at fair value through other comprehensive income could have an impact of NT\$993 thousand and NT\$650 thousand on the equity attributable to the Group for the year ended December 31, 2021 and 2020, respectively.

(4) Credit risk management

Credit risk is the risk that counterparty will not meet its obligations under a contract and result in a financial loss. The Group is exposed to credit risk from operating activities (primarily for accounts and notes receivable) and from its financing activities including bank deposits and other financial instruments.

Customer credit risk is managed by each business unit subject to the Group's established policy, procedures and control relating to customer credit risk management. Credit risk of all customers are assessed based on a comprehensive review of the customers' financial status, credit ratings from credit institutions, past transactions, current economic conditions and the Group's internal credit ratings.

As of December 31, 2021 and 2020, receivables from the top ten customers were accounted for 81% and 84% respectively of the Company's total accounts receivable, respectively. The concentration of credit risk is relatively insignificant for the remaining receivables.

Credit risk from balances with banks and other financial instruments is managed by the Company's finance division in accordance with the Company's policy. The counterparties that the Company transacts with are determined by internal control procedures. They are banks with fine credit ratings and financial institutions, corporate and government agencies with investment-grade credit ratings. Thus, there is no significant default risk. Conclusively, no significant credit risk is expected by the Company.

The Group adopted IFRS 9 to assess the expected credit losses. Except for trade receivables, the remaining debt instrument investments which are not measured at fair value through profit or loss, low credit risk for these investments is a prerequisite upon acquisition and by using their credit risk as a basis for the distinction of categories. The Group makes an assessment at each reporting date as to whether the credit risk still meets the conditions of low credit risk and then further determines the method of measuring the loss allowance and the loss ratio.

Financial assets are written off when there is no realistic prospect of future recovery (the issuer or the debtor is in financial difficulties or bankruptcy).

(5) Liquidity risk management

The Company maintains financial flexibility using cash and cash equivalents, highly-liquid marketable securities, bank loans, etc. The table below summarizes the maturity profile of the Company's financial liabilities based on the contractual undiscounted payments and contractual maturity. The payment amount includes the contractual interest. The undiscounted interest payment relating to borrowings with variable interest rates is extrapolated based on the estimated yield curve as of the end of the reporting period.

	Less than				More than
	1 year	1 to 2 years	2 to 3 years	3 to 4 years	4 years	Total
As of 12/31/2021
Trade Payables	\$374,363	\$-	\$-	\$-	\$-	\$374,363
Other Payables	203,883	-	-	-	-	203,883
Lease liabilities	1,010	-	-	-	-	1,010
Bonds Payable	-	500,000	-	-	-	500,000
As of 12/31/2020
Trade Payables	\$253,990	\$-	\$-	\$-	\$-	\$253,990
Other Payables	157,709	-	-	-	-	157,709
Lease liabilities	2,840	1,033	-	-	-	3,873

Non-derivative financial instruments

(6) Movement schedule of liabilities arising from financing activities

Movement schedule of liabilities for the year ended December 31, 2021:

			Total liabilities
	Bonds	Lease	from financing
	Payable	liabilities	activities
As of 1/1/2021	\$-	\$3,759	\$3,759
Cash flows	495,012	(2,840)	492,172
Non-cash changes	(15,060)	-	(15,060)
Interests expenses	5,144	86	5,230
As of 12/31/2021	\$485,096	\$1,005	\$486,101

Movement schedule of liabilities for the year ended December 31, 2020:

			Total liabilities
	Refundable	Lease	from financing
	deposits	liabilities	activities
As of 1/1/2020	\$162	\$6,408	\$6,570
Cash flows	(162)	(2,841)	(3,003)
Non-cash changes	-	-	-

Interests expenses of
lease liabilities	-	192	192
As of 12/31/2020	\$-	\$3,759	\$3,759

(7) Fair values of financial instruments

A. The evaluation methods and assumptions applied in determining the fair value

Fair value is the price that would be received to sell a financial asset or paid to transfer a financial liability in an orderly transaction between willing market participants (not under coercion or liquidation). The following methods and assumptions are used by the Group in estimating the fair values of financial assets and liabilities:

• (a) The carrying amount of cash and cash equivalents, receivables, payables and other current liabilities approximate their fair value due to their short maturity terms.
• (b) For financial assets and liabilities traded in an active market with standard terms and conditions, their fair value is determined based on market quotation price (e.g. listed equity securities etc.) at the report date.
• (c) Fair value of equity instruments without market quotations (including private placement of listed equity securities, unquoted public company and private company equity securities) are estimated using the market method valuation techniques based on parameters such as prices based on market transactions of equity instruments of identical or comparable entities and other relevant information (for example, inputs such as discount for lack of marketability, P/E ratio of similar entities and Price-Book ratio of similar entities).
• (d) Fair value of debt instruments without market quotations, bank loans, bonds payable and other non-current liabilities are determined based on the counterparty prices or valuation method. The valuation method uses DCF method as a basis, and the assumptions such as the interest rate and discount rate are primarily based on relevant information of similar instrument (such as yield curves published by the GreTai Securities Market, average prices for Fixed Rate Commercial Paper published by Reuters and credit risk, etc.)

B. Fair value of financial instruments measured at amortized cost

Other than the item is listed in the table below, the carrying amount of the Group's financial assets and liabilities measured at amortized cost approximate their fair value:

		Carrying amount
	Dec. 31,2021	Dec. 31,2020
Financial liabilities
Bonds payable	\$485,096	\$-
	Fair value
	Dec. 31,2021	Dec. 31,2020
Financial liabilities
Bonds payable	\$486,050	\$-

C. Fair value measurement hierarchy for financial instruments

Please refer to Note 12(9) for fair value measurement hierarchy for financial instruments of the Company.

(8) Derivative financial instruments

As of December 31, 2020, there was no derivative financial instruments for the Group. The related information for derivative financial instruments not qualified for hedge accounting and not yet settled as of December 31, 2021 is as follows:

As of 12/31/2021

Embedded derivatives

The embedded derivatives arising from issuing convertible bonds have been separated from the host contract and carried at fair value through profit or loss. Please refer to Note 6 for further information on this transaction.

(9) Fair value measurement hierarchy

A. Fair value measurement hierarchy

All asset and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole. Level 1, 2 and 3 inputs are described as follows:

Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date

Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

Level 3 – Unobservable inputs for the asset or liability

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorization at the end of each reporting period.

B. Fair value measurement hierarchy of the Group's assets and liabilities

The Group does not have assets that are measured at fair value on a non-recurring basis. Fair value measurement hierarchy of the Group's assets and liabilities measured at fair value on a recurring basis is as follows:

Financial assets:	Level 1	Level 2	Level 3	Total
Financial assets at fair value
through other
comprehensive income
Listed companies stocks	\$99,270	\$-	\$-	\$99,270
Unlisted company stocks	-	-	10,000	10,000
Total	\$99,270	-	10,000	\$109,270

As of 12/31/2021

As of 12/31/2020

Financial assets:	Level 1	Level 2	Level 3	Total
Financial assets at fair value
through profit or loss
Funds	\$35,047	\$-	\$-	\$35,047
Financial assets at fair value
through other
comprehensive income
Listed companies stocks	\$64,987	\$-	\$-	\$64,987
Unlisted company stocks	-	-	19,972	19,972
Total	\$64,987	\$-	\$19,972	\$84,959

Transfers between Level 1 and Level 2 during the period

For the year ended December 31, 2021 and 2020, there were no transfers between Level 1 and Level 2 fair value hierarchy.

Reconciliation for fair value measurements in Level 3 of the fair value hierarchy for movements during the period is as follows:

	Assets
	At fair value through other
	comprehensive income
Beginning balances as of 1/1/2021	\$19,972
Amount recognized in OCI	(9,972)
Ending balances as of 12/31/2021	\$10,000
	Assets
	At fair value through other
	comprehensive income
Beginning balances as of 1/1/2020	\$19,972
Ending balances as of 12/31/2020	\$19,972

Notes to the Parent-Company-Only	Financial Statements (Continued)
----------------------------------	-------------------------------------

	Liabilities
	At fair value through profit
	or loss
Beginning balances as of 1/1/2021	\$-
Acquisition/issues for the period	1,200
Total gains and losses for the period	-
Amount recognized in gains/losses (report on
other gains and losses)	(400)
Ending balances as of 12/31/2021	\$800

Total gains and losses recognized in profit or loss for the year ended December 31, 2021 and 2020 in the table above contain gains and losses related to assets or liabilities on hand in the amount of NT\$400 and NT\$0, respectively.

Information on significant unobservable inputs to valuation

Description of significant unobservable inputs to valuation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy is as follows:

As of 12/31/2021

	Valuation techniques	Significant unobservable inputs	Quantitative information	Relationship between inputs and fair value	Sensitivity of the input to fair value
Financial assets:
At fair value through	other comprehensive income
Stocks	Market approach	Discount for lack of marketability	20%	The higher the discount for lack of marketability, the lower the fair value of the stocks	1% increase (decrease) in the discount for lack of marketability would result in increase (decrease) in the Group's profit or loss by NT\$120 thousand

English Translation of Parent-Company-Only Financial Statements and Footnotes Originally Issued in Chinese Winmate Inc. Notes to the Parent-Company-Only Financial Statements (Continued)

Financial liabilities:

At fair value through

other comprehensive income

Embedded derivatives

model for valuation of

convertible

bonds

Binary tree-based

Volatility 17.15% The higher the volatility, the higher the fair value of the embedded

derivatives

5% increase (decrease) in the volatility would result in increase (decrease) in the Group's profit or loss by NT\$10 thousand/NT \$0

As of 12/31/2020

		Significant		Relationship
	Valuation	unobservable	Quantitative	between inputs and	Sensitivity of the
	techniques	inputs	information	fair value	input to fair value
Financial assets:
At fair value through
	other comprehensive income
Stocks	Market approach	Discount for	20%	The higher the	1% increase
		lack of		discount for lack	(decrease) in the
		marketability		of marketability,	discount for lack of
				the lower the fair	marketability would
				value of the	result in increase
				stocks	(decrease) in the
					Group's profit or
					loss by NT\$269
					thousand

(c) Fair value measurement hierarchy of the Group's assets and liabilities not measured at fair value but for which the fair value is disclosed

As of 12/31/2021

	Level 1	Level 2	Level 3	Total
Financial liabilities not measured
at fair value but for which the fair
value is disclosed:
Bonds payables (Please refer to
the Note6(13))	\$-	\$-	\$485,056	\$485,056

(10) Significant financial assets and liabilities denominated in foreign currencies

Information regarding the Company's significant financial assets and liabilities denominated in foreign currencies was listed below: (In Thousands)

		As of December 31,
		2021
	Foreign Currencies	Exchange Rate	NTD
Financial assets
Monetary items:
USD	\$21,113	27.68	\$584,407
EUR	\$2,712	31.32	\$84,946
Financial liabilities
Monetary items:
USD	\$8,351	27.68	\$231,142
EUR	\$44	31.32	\$1,365
		As of December 31,
		2020
	Foreign Currencies	Exchange Rate	NTD
Financial assets
Monetary items:
USD	\$16,582	28.48	\$472,242
EUR	\$3,315	35.02	\$116,104

English Translation of Parent-Company-Only Financial Statements and Footnotes Originally Issued in Chinese Winmate Inc. Notes to the Parent-Company-Only Financial Statements (Continued)

Financial liabilities
Monetary items:
USD	\$5,633	28.48	\$160,428
EUR	\$1	35.02	\$31

The above information is disclosed based on the carrying amount of foreign currency (after being converted to functional currency).

Due to the various types of individual functional currencies of the Group, it is impossible to disclose information on the exchange gains and losses of monetary financial assets and financial liabilities according to the foreign currencies that have a significant impact. The Group's foreign currency exchange and losses from January 1 to December 31, 2021 and 2020 were NT\$(14,196) thousand and NT\$(7,330) thousand.

(11) Capital management

The primary objective of the Group's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios to support its business and maximize shareholder value. The Group manages and adjusts its capital structure considering changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust dividend payment to shareholders, return capital to shareholders or issue new shares.

13. ADDITIONAL DISCLOSURES

• (1) Information on significant transactions
• A. Financing provided to others: None.
• B. Endorsement/Guarantee provided to others: None.
• C. Marketable securities held as of December 31, 2021 (excluding investments in subsidiaries, associates and joint ventures): Please refer to attachment 1.

• D. Individual securities acquired or disposed of with accumulated amount of at least NT\$ 300 million or 20 percent of the paid-in capital for the year ended December 31, 2021: None.

• E. Acquisition of individual real estate with amount of at least NT\$300 million or 20 percent of the paid-in capital for the year ended December 31, 2021: None.

• F. Disposal of individual real estate with amount of at least NT\$300 million or 20 percent of the paid-in capital for the year ended December 31, 2021: None.
• G. Related party transactions with purchase or sales amount of at least NT\$100 million or 20 percent of the paid-in capital for the year ended December 31, 2021: Please refer to attachment 2.
• H. Receivables from related parties of at least NT\$100 million or 20 percent of the paid-in capital as of December 31, 2021: None.
• I. Derivative instrument transactions: None.
• (2) Information on investees
• A. Investees over whom the Company exercises significant influence or control (excluding investees in Mainland China): Please refer to attachment 3.

• B. Investees over which the Company exercises control shall be disclosed of information under Note 13(1):

  • (a) Financing provided to others: None.
  • (b) Endorsement/Guarantee provided to others: None.
  • (c) Marketable securities held as of December 31, 2021 (excluding investments in subsidiaries, associates and joint ventures): None.
  • (d)Individual securities acquired or disposed of with accumulated amount of at least NT\$300 million or 20 percent of the paid-in capital for the year ended December 31, 2021: None.
  • (e) Acquisition of individual real estate with amount of at least NT\$300 million or 20 percent of the paid-in capital for the year ended December 31, 2021: None.

• (f) Disposal of individual real estate with amount of at least NT\$300 million or 20 percent of the paid-in capital for the year ended December 31, 2021: None.

• (g)Related party transactions with purchase or sales amount of at least NT\$100 million or 20 percent of the paid-in capital for the year ended December 31, 2021: Please refer to attachment 4.
• (h)Receivables from related parties of at least NT\$100 million or 20 percent of the paidin capital as of December 30, 2021: None.
• (i) Derivative instrument transactions: None.

English Translation of Parent-Company-Only Financial Statements and Footnotes Originally Issued in Chinese Winmate Inc. Notes to the Parent-Company-Only Financial Statements (Continued)

(3) Information on investments in Mainland China:

A. Name of investee in China, main business, paid-in capital, method of investment, investment flows, percentage of ownership, investment gain or loss, carrying amount at the end of reporting period, inward remittance of earning or loss and the upper limit on investment in China:

(In Thousand of New Taiwan Dollars)

Name of Investee in China	Main Business	Paid-in Capital	Method of Investment	Accumulated Outflow of Investment from Taiwan as of Jan. 1, 2021	Investment Flows		Accumulated Outflow of Investment from Taiwan as of Dec. 31, 2021	Profit/ Loss of Investee	Percentage of Ownership (Direct or Indirect Investment)	Share of Profit/Loss	Carrying Amount as of Dec. 31, 2021	Accumulated Inward Remittance of Earnings as of Dec. 31, 2021	Accumulated Outflow of Investment from Taiwan to Mainland China as of Dec. 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment in China by Investment Commission, MOEA
					Outflow	Inflow
Beijing Winmate Automation Technology Co., Ltd.	Sales of industrial computers and peripheral products	\$30,240 (USD\$1,000)	Go directly to the mainland for investment	\$30,240 (USD\$1,000)	\$-	\$-	\$30,240 (USD\$1,000)	\$(545) (Note1)	100.00%	\$(545) (Note1)	\$6,415 (Note1)	\$-	\$30,240	\$30,240	\$1,372,492

Note 1: Amounts in foreign currencies are translated into New Taiwan dollars using the exchange rates on the balance sheet date.

• B. Significant transactions with investees in China:
• (a) Purchase and balances of related accounts payable as of December 31, 2021: None.
• (b) Sale and balance of related accounts receivable as of December 31, 2021:

		Operating revenue	Accounts receivables
				% to
			Amount	Account
	Amount	% to Net Sales		Balance
Beijing Winmate Automation
Technology Co., Ltd.	\$8,165	0.34%	\$2,630	0.77%

• (c) Property transaction amounts and resulting gain or loss: None.
• (d) Ending balance of endorsements/guarantees or collateral provided and the purposes: None.
• (e) Maximum balance, ending balance, interest rate range and total interest for current period from financing provided to others: None.
• (f) Transactions that have significant impact on profit or loss of current period or the financial position, such as services provided or rendered: None.

(4) Information on major shareholders:

Ownership of shares
Name	Number of shares held	Ownership ratio
ADVANTECH CO., LTD.	12,000,000	16.54 %
ONYX HEALTHCARE INC.	10,041,000	13.84 %
IBASE TECHNOLOGY INC.	4,871,097	6.71 %
JUI HAI INVESTMENT CO., LTD.	4,300,000	5.92 %
PREMIER TOUCH CORPORATION	3,775,744	5.20 %

14. OPERATING SEGMENT

The Company has provided the operating segment disclosure in the consolidated financial statements.

Winmate Inc.

Attachment 1

Marketable Securities Held as of December 31, 2021 (Amounts in Thousands of New Taiwan Dollars)

Name of Held Company	Type and Name of Marketable Securities	Relationship with	Financial Statement Account		December 31, 2021
	(Note 1)	the Issuer (Note 2)		Shares / Units	Carrying Amount	Shareholding %	Fair Value	Note
	Stock
Winmate Inc.	Tangtop Technology Co., Ltd.	-	Financial assets at fair value through other comprehensive income, noncurrent	103	\$25,990	13.00	\$-
	Inno fund III Inc.	-	Financial assets at fair value through other comprehensive income, noncurrent	1,000	10,000	4.35	10,000
	Ibase Technology Inc.	-	Financial assets at fair value through other comprehensive income, current	1,665	67,945	0.94	67,853
	Axiomtek Co., Ltd.	-	Financial assets at fair value through other comprehensive income, current	192	9,940	0.22	10,483
	Tailyn Technologies, Inc.	-	Financial assets at fair value through other comprehensive income, current	577	9,768	0.77	12,550
	APLEX Technology Inc.	-	Financial assets at fair value through other comprehensive income, current	203	7,624	0.67	8,384
Add: Valuation adjustments					(21,997)
Net value					\$109,270		\$109,270

Note 1:The marketable securities mentioned in attachment refer to stock, bonds, beneficiary certificates and securities derived from above motioned item within in the scope of IFRS 9 Financial Instruments.

Note 2: Leave the column blank if the issuer of marketable securities is non-related party.

Winmate Inc.

Related Party Transactions with Purchase or Sales Amount of At least NT\$100 Million or 20% of the Paid-in Capital

Attachment 2

			Related Party Transactions with Purchase or Sales Amount of At least NT\$100 Million or 20% of the Paid-in Capital (Amounts in Thousands of New Taiwan Dollars)
				Transaction Details				Abnormal Transaction	Notes/ Accounts Payable or Receivable		Note
Company		Nature of				Payment/ Collection		Payment/	Ending
Name	Related Party	Relationship	Purchase/ Sale	Amount	% to Total	Term	Unit Price	Collection Term	Balance	% to Total
Winmate Inc.	Winmate Communication US, Inc.	Subsidiary	Sales	\$214,244	8.81%	90 days after monthly closing	Similar to those to third party customers.	Third party customers are 14 days to 90 days after monthly closing	\$69,990	20.41%

Winmate Inc.

Attachment 3

				Original Investment Amount Ending balance		Net Income (Loss) of	Share of Income (Loss)
				As of	As of				the Investee (NOTE	of the	Note
Investor	Investee (Note1,2)	Business Location	Main Business and Product	December 31,	December 31,	Shares	%	Carrying Value	2(2))	Investee(NOTE2(3))
Winmate Inc.	TTX Canada Inc.	Canada	Sales of professional industrial	2021 \$24,170	2020 \$24,170	800	100.00%	\$21,400	\$2,783	\$2,783
			computer and monitor distributors	(CAD\$800)	(CAD\$800)
Winmate Inc.	Winmate Communication US,	U.S.A.	Sales of professional industrial	108,695	108,695	350	100.00%	36,809	5,706	5,706
	Inc.		computer and monitor distributors	(USD\$3,500)	(USD\$3,500)
Winmate Inc.	TL Electronic GmbH	Germany	Sales of professional industrial computer and monitor	10,641 (EUR\$310)	7,608 (EUR\$220)	-	30.00%	6,443	(378)	3	Note 3
			distributors
Winmate Inc.	Maxkit Technology Co., Ltd.	Taiwan	Sales of Telecom Instruments	15,000	-	1,000	33.33%	15,760	2,279	760

Investees over Which the Company Exercise Significant Influence or Control Directly or Indirectly (Excluding Investees in Mainland China) (In thousand share; Amounts in Thousands of New Taiwan Dollars and foreign currency)

Note 1:If a public company is equipped with an overseas holding company and takes the consolidated financial report as the main financial report according to the local laws,

it can only disclose the information of the overseas holding company about the disclosure of related overseas investee information.

Note 2: If situation does not belong to Note 1, fill in the columns according to the following regulations:

(1)The columns of "Investee", "Location", "Main business activities", "Initial investment amount" and "Shares held as at December 31, 2021" should fill orderly in the Company' s (public company's) information on investees and every directly or indirectly controlled investees' investment information, and note the relationship between the Company (public company) and its investee each (ex. Direct subsidiary or indirect subsidiary) in the "Footnote" column.

(2)The "Net profit (loss) of the investee for the period ended December 31, 2021" column should fill in amount of net profit (loss) of the investee for this period.

(3)The "Investment income (loss) recognized by the Company for the period ended December 31, 2021" column should fill in the Company (public company) recognized investment income (loss) of its direct subsidiary and recognized investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognized investment income (loss) of its direct subsidiary, the Company

(public company) should confirm that direct subsidiary's net profit (loss) for this period has included its investment income (loss) which shall be recognized by regulations.

Note 3:The investee is a limited company, no shares have been issued.

Winmate Inc.

Attachment 4

Related Party Transactions with Purchase or Sales Amount of At least NT\$100 Million or 20% of the Paid-in Capital (Amounts in Thousands of New Taiwan Dollars)

									Notes/ Accounts
				Transaction Details				Abnormal Transaction	Payable or Receivable		Note
						Payment/
		Nature of				Collection		Payment/	Ending
Company Name	Related Party	Relationship	Purchase/ Sale	Amount	% to Total	Term	Unit Price	Collection Term	Balance	% to Total
						90 days after	No suppliers	Terms of third
						monthly	to be	party are 30 days
Winmate	Winmate Inc.	Parent company	Purchase	\$214,244	93.71%	closing	compared with	to 120 days after	\$(69,990)	99.36%
Communication US, Inc.								monthly closing

WINMATE INC.

1. Statement of Cash and Cash Equivalents

As of December 31, 2021

Item	Description	Amount	Note
Petty cash:		\$569	1.Exchange Rate on December 31, 2021 USD:NT=27.68:1、EUR:NT= 31.32:1
Demand and Checking deposits: Demand deposits - NTD Demand deposits - Foreign currency Subtotal		188,567 260,851 449,418	USD6,379、EUR2,684
Fixed-term deposits: Fixed-term deposits - Foreign currency	Interest rate:0.2- 0.25%; Expire successively on January 20, 2022	55,360	USD2,000
Subtotal Total		55,360 \$505,347

WINMATE INC.

2. Statement of Changes in Financial Assets at Fair Value through Profit or Loss

For the Year ended December 31, 2021

		As of January 1, 2021		Additions		Decrease		As of December 31, 2021		Note
Financial Instruments	Shares	book value	Shares	Amount	Shares	Amount	Shares	book value	Collateral
Money market funds:
UBOT Money Market Fund	377,346.3	\$5,005	-	\$-	377,346.3	\$5,005	-	\$-	None
Bank SinoPac Money Market Fund	713,170.1	10,000	2,137,493.4	30,000	2,850,663.5	40,000	-	-	None
JihSun Money Market Fund	-	-	1,335,519.3	20,000	1,335,519.3	20,000	-	-	None
PGIM Money Market Fund	628,121.0	10,000	1,877,864.2	30,000	2,505,985.2	40,000	-	-	None
Capitalfund Money Market Fund	614,907.8	10,000	613,843.4	10,000	1,228,751.2	20,000	-	-	None
Add: Valuation adjustments of financial assets
held for trading		42		-		42		-
Total		\$35,047		\$90,000		\$125,047		\$-

WINMATE INC.

1. Statement of Changes in Financial Assets at Fair Value through other comprehensive income

For the Year ended December 31, 2021

		As of January 1, 2021		Additions		Decrease As of December 31, 2021			Collatera	Note
Financial Instruments	Shares	book value	Shares	Amount	Shares	Amount	Shares	book value	l
Investee companies:
IBASE TECHNOLOGY INC.	1,410	\$58,321	255	\$9,624	-	\$-	1,665	\$67,945	None
SYNCMOLD ENTERPRISE CORP.	120	9,973	-	-	120	9,973	-	-	None
AXIOMTEK CO., LTD.	-	-	192	9,940	-	-	192	9,940	None
TAILYN TECHNOLOGIES, INC.	-	-	577	9,768	-	-	577	9,768	None
APLEX TECHNOLOGY INC.	-	-	203	7,624	-	-	203	7,624	None
Add: Valuation adjustments of financial assets
held for trading		(3,307)		7,228		(72)		3,993
Total		\$64,987		\$44,184		\$9,901		\$99,270

4.Statement of Financial Assets Measured at Amortized Cost - Current

For the Year ended December 31, 2021

Item	Description	Amount	Note
Current:
Restricted
deposit- Foreign		\$1,799	USD 65
currency
Fixed-term	Interest rate:0.63%-0.81%; Expire successively
deposits - NTD	on Febuary 15, 2022, one year maturity for time	655,500
Fixed-term	deposit.
deposits - Foreign	Interest rate:0.18%-0.2%,; Expire on Febuary	27,680	USD 1,000
currency	15, 2022, one year maturity for time deposit.
Total		\$684,979

WINMATE INC.

5. Statetment of Notes Receivable, net

As of December 31, 2021

Client Name	Amount	Note
Client A	\$4,856	1.Non related parties.
Others	6
Less: loss allowance	-
Net	\$4,862

WINMATE INC.

1. Statetment of Accounts Receivable, net

As of December 31, 2021

(In Thousands of New Taiwan Dollars)
--------------------------------------	--

Client Name	Amount	Note
Client B	\$104,206	1.The amount of individual client included
Client C	32,196	in others does not exceed 5% of the account balance.
Client D	19,417	2.Non related parties.
Client E	12,578	3.The account receivables incurred mainly from
Others	59,889	operating activities. No guaranty and pledge.
Subtotal	228,286
Less: loss allowance	(1,363)
Net	\$226,923

WINMATE INC.

7.STATEMENT OF OTHER RECEIVABLES, NET

As of December 31, 2021

Item	Amount	Note
Vat refund	\$16,469
Interest receivable	242
Others	18
Total	\$16,729

WINMATE INC.

8. Statement of Inventories

As of December 31, 2021

	Amount
Item	Cost	Net Realizable Value	Note
Merchandises	\$22,636	\$30,220	1.Inventories were not pledged.
Raw materials	306,815	455,768	2.Inventories are valued at
Supplies & parts	131,864	186,011	lower of cost or net
Work in progress	99,786	133,050	realizable value item by item.
Finished goods	16,082	18,269	3.The insurance coverage for
Subtotal	577,183	\$823,318	inventories was NT\$ 428,800
Less: allowance for inventory valuation losses	(19,386)		thousand as of December 31, 2021.
Net	\$557,797

WINMATE INC.

9.Statement of Prepayments

As of December 31, 2021

Item	Amount	Note
Prepayment	\$47,021
Other prepaid expense	9,830
Total	\$56,851

WINMATE INC.

10.Statement of Changes in Financial Assets Measured through other comprehensive income - Non Current

For the Year ended December 31, 2021

		As of January 1, 2021		Additions		Decrease		As of December 31, 2021		Note
Financial Instruments	Shares	book value	Shares	Amount	Shares	Amount	Shares	book value	Collateral
Investee companies:
TANGTOP TECHNOLOGY CO., LTD.	103	\$25,990	-	\$-	-	\$-	103	\$25,990	None
AlphaInfo Inc.	216	9,972	-	-	216	9,972	-	-
Inno fund III Inc.	1,000	10,000	-	-	-	-	1,000	10,000	None
Add: Valuation adjustments of financial assets
held for trading		(25,990)		-				(25,990)
Total		\$19,972		\$-		\$9,972		\$10,000

WINMATE INC.

11.Statement of Changes in Financial Assets Measured at Amortized Cost - Non Current

For the Year ended December 31, 2021

	(In Thousands of New Taiwan Dollars)
--	--------------------------------------	--	--	--

Item	Description	Amount	Note
Non current:
Restricted deposit- NTD	customs deposit	\$2,178
Ordinary bonds receivable	Interest rate:0.48%; Maturity date on November 17, 2028, interest paid annually	100,000
Total		\$102,178

WINMATE INC.

1. Statement of Changes in Long-term Investment Accounted for Under the Equity Method

For the Year ended December 31, 2021

(In Thousands of New Taiwan Dollars)

		As of January 1, 2021		Additions		Decrease		As of December 31, 2021			Fair Value/Net assets value
										Unit		Collateral	Note
Investee companies	Shares	Amount	Shares	Amount	Shares	Amount	Shares	%	Amount	price(NTD)	Total amount
Beijing Winmate Automation	-	\$7,220	-	\$-	-	\$(805)	-	100.00%	\$6,415	\$-	\$8,020	None
Technology Co., Ltd.						(Note 1)
TTX Canada Inc.	800	19,088	-	2,312 (Note 2)	-	-	800	100.00%	21,400	29.70	23,762	None
Winmate	350	32,257	-	4,552	-	-	350	100.00%	36,809	128.96	45,137	None
Communication				(Note 3)
US,INC.
TL Electronic GmbH	-	6,148		3,033	-	(2,738) (Note 4)	-	30.00%	6,443	-	2,920	None
Maxkit Technology Co., Ltd.	-	-	1,000	15,760 (Note 5)	-	-	1,000	33.33%	15,760	7.47	7,473	None
Total		\$64,713		\$25,657		\$(3,543)			\$86,827		\$87,312

Note1: Including investment loss recognized under equity method amounted to NT\$546 thousand and foreign currency statements translation adjustments amounted to NT\$66 thousand and realized profit on transaction

between subsidiaries amounted to NT\$1,411 thousand and unrealized profit on transaction between subsidiaries amounted to NT\$(1,604) thousand.

Note2: Including investment gain recognized under equity method amounted to NT\$2,783 thousand and foreign currency statements translation adjustments amounted to NT\$(790) thousand. Realized profit on transaction between subsidiaries amounted to NT\$2,680 thousand, unrealized profit on transaction between subsidiaries amounted to NT\$(2,361) thousand.

Note3: Including investment gain recognized under equity method amounted to NT\$5,706 thousand and foreign currency statements translation adjustments amounted to NT\$(1,208) thousand. Realized profit on transaction between subsidiaries amounted to NT\$8,382 thousand, unrealized profit on transaction between subsidiaries amounted to NT\$(8,328) thousand.

Note4: Including investment gain recognized under equity method amounted to NT\$3 thousand and foreign currency statements translation adjustments amounted to NT\$(2,908) thousand. Realized profit on transaction

between subsidiaries amounted to NT\$1,163 thousand, unrealized profit on transaction between subsidiaries amounted to NT\$(996) thousand.

Note5: Including acquisition of investment accounted for under equity method amounted to NT\$760 thousand, and acquired cost to NT\$15,000 thousand

WINMATE INC.

1. Statement of Refundable deposits

As of December 31, 2021

Item	Amount	Note
Car rental deposits	\$1,521
House deposits	559
Others	97
Total	\$2,177

WINMATE INC.

14. Statement of Contract Liabilities

As of December 31, 2021

Item	Amount	Note
Receipts in advance		The amount of individual client
Customer F	\$9,275	included in "others" does not exceed 5%
Customer A	7,030	of the account balance.
Customer G	3,122
Customer H	2,701
Others	27,505
Total	\$49,633

WINMATE INC.

15. Statement of Accounts Payable

As of December 31, 2021

Vendor Name	Amount	Note
Supplier A	\$31,286	The amount of individual vendor included
Others	339,555	in "others" does not exceed 5% of the
Total	\$370,841	account balance.

WINMATE INC.

16. Statement of Other Payables

As of December 31, 2021

Item	Amount	Note
Accrued Payroll	\$91,201
Employee Bonus	49,626
Others	61,479
Total	\$202,306

WINMATE INC.

17. Statement of Changes in Current Tax Liablities

For the Year ended December 31, 2021

Item	Amount	Note
Balance as of January 1, 2021	\$74,822
Add: Income tax accrual for 2021	84,389
Less: Income tax adjustment for prior period	(14,312)
Income tax payment for 2020 and for undistributed earnings of 2019	(49,120)
Interim temporary tax payment	(5)
Balance as of December 31, 2021	\$95,774

WINMATE INC.

18.Statement of Lease Liabilities

As of December 31, 2021

(In Thousands Of New Taiwan Dollars)
--------------------------------------	--

Item	Period	Discount rate	Amount	Note
Buildings	108.06.01~111.05.31	1.24%	\$746
Transport equipment	108.04.18~111.04.17	1.47%	259
Less: Current portion of lease liabilities			(1,005)
Non-Current portion of lease liabilities			\$-

WINMATE INC.

19. Statement of Other Current Liabilities

As of December 31, 2021

Item	Amount	Note
Receipts under custody	\$2,181

WINMATE INC.

20.Statements of Bonds Payable

As of December 31, 2021

						Amount
			Interest			Converted or	As of
			Payment	Interest		Redeemed	December
Description	Trustee.	Issue Date	Date	Rates	Issue Amount	Amount	31, 2020	Repayment Method	Collateral	Note
Second Unsecured Convertible	Concord Securities	110.3.22	-	-%	\$500,000	\$-	\$500,000	According to the terms of	None
Bonds Payable	Co.,Ltd.							conversion, please refer to
								Note 6(13).
Less: Discounts on bonds payable							(14,904)
Net							\$485,096

WINMATE INC.

1. Statement of Operating Revenues

For the Year ended December 31, 2021

Item	Quanity	Amount	Note
Sale of goods
LCD display	279,770	\$322,447
Embed	305,887	2,051,321
Others	83,226	16,908
Service revenue		41,155
Total net opearating revenues		\$2,431,831

WINMATE INC.

1. Statement of Operating Costs

For the Year ended December 31, 2021

Item	Amount	Note
Cost of Homemade product
Direct Materials
Beginning balance	\$177,785
Add: Raw materials purchased	1,312,975
Less: Ending balance	(306,815)
Others	(7,955)
Raw materials scrapped	(14,998)
Direct materials used	1,160,992
Direct labor	58,596
Manufacturing overhead	222,414
Manufacturing cost	1,442,002
Add: Work in process, beginning balance	213,354
Add: Work in process purchased	143,655
Less: Work in process, ending balance	(231,650)
Others	(9,698)
Work in process scrapped	(3,329)
Cost of finished goods	1,554,334
Add: Finished goods, beginning balance	15,656
Finished goods purchased	-
Less: Finished goods, ending balance	(16,082)
Others	(6,812)
Finished goods scrapped	(73)
Cost of goods sold at normal production level	1,547,023
Merchandise cost
Beginning balance	22,564
Add: Merchandise purchased	90,941
Others	427
Less: Ending balance	(22,636)
Merchandise scrapped	(1,681)
Cost of merchandise sold	89,615
Loss from inventory valuation	(7,069)
Loss from inventory scrapped	20,081
Total	\$1,649,650

WINMATE INC.

1. Statement of Manufacting Overhead

For the Year ended December 31, 2021

Item	Amount	Note
Salaries and wages	\$72,887
Processing fees	75,629
Depreciation	21,314
Amortization	35
Meal expense	2,920
Employee benefits	631
Others	48,998
Total	\$222,414

WINMATE INC.

24. Statement of Selling

For the Year ended December 31, 2021

Item	Amount	Note
Salaries and wages	\$61,090
Advertisement expense	10,486
Depreciation	1,493
Amortization	283
Meal expense	1,204
Employee benefits	275
Commission expenses	15,890
Import and export fee	14,871
Others	20,509
Total	\$126,101

WINMATE INC.

1. Statement of General and Administrative

For the Year ended December 31, 2021

Item	Amount	Note
Salaries and wages	\$33,122
Insurance expense	1,891
Depreciation	876
Amortization	7
Meal expense	626
Employee benefits	145
Others	16,677
Total	\$53,344

WINMATE INC.

1. Statement of Research and Development

For the Year ended December 31, 2021

Item	Amount	Note
Salaries and wages	\$106,572
Depreciation	1,711
Amortization	22,458
Meal expense	2,883
Employee benefits	580
Others	40,812
Total	\$175,016