WPG — Audit Report / Information 2020

Dec 21, 2020

WPG HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT

DECEMBER 31, 2020 AND 2019

For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Stockholders of WPG Holdings Limited

Opinion

We have audited the accompanying consolidated balance sheets of WPG Holdings Limited and its subsidiaries (the “Group”) as at December 31, 2020 and 2019, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2020 and 2019, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and generally accepted auditing standards in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the consolidated financial statements section of our report. We are independent of the Group in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Group’s 2020 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

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Key audit matters for the Group’s 2020 consolidated financial statements of the current period are stated as follows:

Impairment assessment of goodwill

Description

Refer to Note 4(19) for accounting policy on goodwill impairment, Note 5(2) for uncertainty of accounting estimates and assumptions in relation to goodwill impairment, and Note 6(13) for details of intangible assets.

The Group acquired shares of stock of target companies by cash or through exchange of shares of stock. The difference between the acquisition price and the carrying amount of the net identifiable assets is allocated in accordance with the accounting policies on business combinations. The Group uses the estimated future cash flows of each cash-generating unit and proper discount rate to determine recoverable amount of goodwill, and assesses whether goodwill may be impaired. Given that the assumptions used in the calculation of recoverable amount requires significant management judgement with respect to the discount rate and the underlying cash flows, we considered the impairment assessment of goodwill a key audit matter.

How our audit addressed the matter

Our audit procedures in relation to the above key audit matter included:

1. Assessing the process in which management evaluates the estimated future cash flows of each cash generating unit, and reconciling the input data used in the valuation model to the approved operational plan by management.

2. Evaluating the reasonableness of the estimated growth rate, gross rate, discount rate and other significant assumptions used in the valuation model, by:

3. (1) Comparing estimated growth rate and gross rate with historical data and our knowledge of the business and industry;

4. (2) Comparing discount rate assumptions with respect to cash generating units’ capital cost and similar return on assets; and

5. (3) Checking the setting of valuation model’s calculation formula.

6. Comparing the recoverable value and book value of each cash-generating unit.

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Valuation of allowance for uncollectible accounts receivable

Description

Refer to Note 4(10) for accounting policy on accounts receivable, Note 5(2) for uncertainty of accounting estimates and assumptions in relation to provision for uncollectible accounts receivable, and Notes 6(5)(15) for details of accounts receivable and overdue receivables.

The Group assesses the collectability of accounts receivable based on historical experience with its customers. As the estimation of allowance for uncollectible accounts is subject to management’s judgment in estimating future recovery, such as management’s assessment of customer’s credit risk, we considered the valuation of allowance for uncollectible accounts receivable a key audit matter.

How our audit addressed the matter

Our audit procedures in relation to the above key audit matter included:

1. Obtaining an understanding of, and evaluating the formal approval process for the customer’s credit limit application.

2. Checking the provision policy on allowance for uncollectible accounts, and assessing the reasonableness of provision policy.

3. Checking the adequacy of the loss rate calculation by sampling the historical accounts receivable aging data and verifying the formula for the calculation of expected credit loss rate.

4. Comparing the classification of accounts receivable aging with current year and prior year, and checking subsequent collections after balance sheet date to confirm recovery of outstanding receivables.

5. For those accounts receivable specifically identified by management to have been impaired, evaluating propriety of impairment assessment against related supporting documents.

Recognition of purchase discounts and allowances

Description

Refer to Note 4(13) for accounting policy on recognition of purchase discounts and allowances.

The Group is engaged in operating sales channel for various electronic components. In line with industry practice, the Group has entered into purchase discounts and allowances agreements with suppliers for various kinds and quantities of inventories. The Group calculates and recognizes the amount of purchase discounts and allowances in accordance with the agreement. The Group negotiates

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the amount with the supplier, and after receiving credit note from supplier, the Group pays the net amount.

The discounts and allowances from supplier are calculated either automatically by the system or manually. The Group has to gather a lot of information to input in the system, such as the items subject to discount and corresponding discount rate, etc. Given that the Group has a large volume of purchases, and has entered into various purchase discounts and allowances agreements with terms and conditions that vary with each agreement, we considered the recognition of purchase discounts and allowances a key audit matter.

How our audit addressed the matter

Our audit procedures in relation to the above key audit matter included:

1. Understanding the process in recognizing purchase discounts and allowances, evaluating related internal control procedures and testing its effectiveness, checking the basic information set up in the computer system with respect to discount and allowance calculation randomly, and selecting samples to determine whether purchase discounts and allowances recognized were reviewed by an authorized supervisor.

2. Selecting samples of purchase discounts and allowances, obtaining confirmed documents and approved credit note from supplier for selected commodity’s part number, and checking whether the part number and discount and allowance amount in obtained vouchers were consistent with the amounts recognized.

3. Performing confirmation of selected material accounts payable, checking whether there is a difference between the amount of purchase discounts and allowances recognized based on credit note from supplier with the amount confirmed by the supplier, and investigating differences, if any. Selecting samples of outstanding accounts payable and checking whether subsequent payments were made after the balance sheet date.

Other matter – Parent company only financial reports

We have audited and expressed an unqualified opinion on the parent company only financial statements of WPG Holdings Limited as at and for the years ended December 31, 2020 and 2019.

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Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including the Audit Committee, are responsible for overseeing the Group’s financial reporting process.

Auditors’ responsibilities for the audit of the consolidated financial statements

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

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

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1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

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

Lin, Chun-Yao Chou, Chien-hung

For and on behalf of PricewaterhouseCoopers, Taiwan March 30, 2021

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The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and audit report of independent auditors are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the consolidated financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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WPG HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Assets	Notes 6(1) 6(2) 6(4) and 8 6(5) 6(5) 7(3) 6(7) 7(3) 6(8) 6(2) and 8 6(3) 6(4) 6(9) 6(10) and 8 6(11) 6(12) and 8 6(13) 6(32) 6(14) 6(15)	December 31, 2020 Amount % $ 11,020,020 5 87,124 - 246,682 - 3,210,976 1 108,221,027 46 177,893 - 12,933,710 6 1,615 - 13,734 - 57,100,025 25 2,616,586 1 2,381,971 1 198,011,363 85 1,346,806 1 1,831,394 1 225,681 - 11,922,666 5 10,560,533 4 1,630,694 1 1,573,739 1 5,661,833 2 534,834 - 31,050 - 646,520 - 35,965,750 15 $ 233,977,113 100	December 31, 2019 Amount % $ 9,992,582 4 339,649 - 84,055 - 1,977,097 1 110,656,082 48 98,292 - 11,428,975 5 1,208 - 27,980 - 67,721,637 29 2,242,687 1 1,396,017 1 205,966,261 89 1,315,509 1 32,035 - - - 586,142 - 5,735,417 3 1,129,079 1 1,060,115 - 5,568,851 2 506,897 - 8,142,688 4 303,826 - 24,380,559 11 $ 230,346,820 100
		Amount $ 11,020,020 87,124 246,682 3,210,976 108,221,027 177,893 12,933,710 1,615 13,734 57,100,025 2,616,586 2,381,971 198,011,363 1,346,806 1,831,394 225,681 11,922,666 10,560,533 1,630,694 1,573,739 5,661,833 534,834 31,050 646,520 35,965,750 $ 233,977,113	Amount $ 9,992,582 339,649 84,055 1,977,097 110,656,082 98,292 11,428,975 1,208 27,980 67,721,637 2,242,687 1,396,017 205,966,261 1,315,509 32,035 - 586,142 5,735,417 1,129,079 1,060,115 5,568,851 506,897 8,142,688 303,826 24,380,559 $ 230,346,820
Current assets Cash and cash equivalents Financial assets at fair value through profit or loss - current Financial assets at amortized cost - current Notes receivable, net Accounts receivable, net Accounts receivable - related parties, net Other receivables Other receivables - related parties Current income tax assets Inventory Prepayments Other current assets Total current assets Non-current assets Financial assets at fair value through profit or loss - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at amortised cost - non-current Investments accounted for using equity method Property, plant and equipment Right-of-use assets Investment property - net Intangible assets Deferred income tax assets Prepayments for investments Other non-current assets Total non-current assets TOTAL ASSETS

(Continued)

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WPG HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

DECEMBER 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Liabilities and Equity

December 31, 2020 December 31, 2019 Notes Amount % Amount % 6(16) $ 59,040,547 25 $ 68,891,614 30 6(17) 4,941,505 2 5,555,424 2 6(2) 2,737 - 16,051 - 50,651 - 34,642 - 62,835,569 27 63,588,170 28 7(3) 77,023 - 653 - 8,033,574 4 5,697,289 2 790,796 - 1,310,711 1 405,282 - 416,902 - 6(18)(19) 10,478,634 5 11,447,611 5 146,656,318 63 156,959,067 68 6(18) 18,643,237 8 7,330,788 3 6(32) 495,971 - 499,268 - 1,289,826 1 740,641 - 888,743 - 849,961 1 21,317,777 9 9,420,658 4 167,974,095 72 166,379,725 72 1 and 6(21) 16,790,568 7 16,790,568 7 2,000,000 1 2,000,000 1 6(22) 28,848,733 13 27,456,298 12 6(23) 6,667,417 3 6,021,073 3 5,420,694 2 2,602,682 1 14,575,304 6 14,022,230 6 6(24) ( 8,832,794) ( 4 ) ( 5,420,694) ( 2) 65,469,922 28 63,472,157 28 4 533,096 - 494,938 - 66,003,018 28 63,967,095 28 7(3) and 9 11 $ 233,977,113 100 $ 230,346,820 100

Current liabilities Short-term borrowings Short-term notes and bills payable Financial liabilities at fair value through profit or loss - current Notes payable Accounts payable Accounts payable - related parties Other payables Current income tax liabilities Lease liabilities - current Other current liabilities Total current liabilities Non-current liabilities Long-term borrowings Deferred income tax liabilities Lease liabilities - non-current Other non-current liabilities Total non-current liabilities Total liabilities Equity attributable to owners of parent Capital Common stock Preference stock Capital reserve Capital reserve Retained earnings Legal reserve Special reserve Unappropriated earnings Other equity interest Other equity interest Equity attributable to owners of the parent Non-controlling interest Total equity Significant contingent liabilities and unrecognized contract commitments Significant events after the balance sheet date TOTAL LIABILITIES AND EQUITY

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

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WPG HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT EARNINGS PER SHARE DATA)

Items

Year ended December 31 2020 2019 Notes Amount % Amount % 6(25) and 7(3) $ 609,885,871 100 $ 527,601,353 100 6(8) and 7(3) ( 586,835,742) ( 97) ( 505,173,257) ( 96) 23,050,129 3 22,428,096 4 6(30)(31) and 7(3) ( 9,089,289) ( 1) ( 9,030,334) ( 1) ( 3,933,753) ( 1) ( 3,777,517) ( 1) 22,781 - 92,319 - ( 13,000,261) ( 2) ( 12,715,532) ( 2) 10,049,868 1 9,712,564 2 6(26) 36,861 - 55,365 - 6(27) 254,304 - 228,293 - 6(28) 610,895 - 516,634 - 6(29) ( 1,926,036) - ( 2,347,372) ( 1) 861,661 - 22,118 - ( 162,315) - ( 1,524,962) ( 1) 9,887,553 1 8,187,602 1 6(32) ( 1,687,049) - ( 1,681,643) - $ 8,200,504 1 $ 6,505,959 1

Operating revenue Operating costs Gross profit Operating expenses Selling and marketing expenses General and administrative expenses Expected credit impairment gain Total operating expenses Operating profit Non-operating income and expenses Interest income Other income Other gains and losses Finance costs Share of profit of associates and joint ventures accounted for using the equity method Total non-operating income and expenses Income before income tax Income tax expense Consolidated net income

(Continued)

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WPG HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT EARNINGS PER SHARE DATA)

Items	Year ended December 31 2020 2019 Notes Amount % Amount 6(20) $ 8,110 - $ 8,849 6(3)(24) 100,184 - - 6(24) 1,760,187 1 ( 72) 6(32) ( 1,622) -( 1,771) 1,866,859 1 7,006 ( 4,875,766) ( 1) ( 2,814,019) 6(24) ( 408,554) - ( 5,027) 6(32) 6,489 - 3,218 ( 5,277,831)( 1)( 2,815,828) ($ 3,410,972) -($ 2,808,822) $ 4,789,532 1 $ 3,697,137 $ 8,123,355 1 $ 6,453,401 77,149 - 52,558 $ 8,200,504 1 $ 6,505,959 $ 4,719,952 1 $ 3,645,425 69,580 - 51,712 $ 4,789,532 1 $ 3,697,137 6(33) $ 4.77 $ $ 4.77 $	Year ended December 31	Year ended December 31	% - - - - - - - - - - 1 1 - 1 1 - 1 3.84 3.84
		2020	2019
Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss Other comprehensive income before tax, actuarial gain (loss) on defined benefit plans Unrealized gains from investments in equity instruments measured at fair value through other comprehensive income Share of other comprehensive income (loss) of associates and joint ventures accounted for using the equity method that will not be reclassified to profit or loss Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss Exchange differences on translation of foreign financial statements Share of other comprehensive loss of associates and joint ventures accounted for using the equity method Income tax related to components of other comprehensive income that will be reclassified to profit or loss Other comprehensive loss that will be reclassified to profit or loss Total other comprehensive loss Total comprehensive income Consolidated net income attributable to: Owners of the parent Non-controlling interest Comprehensive income attributable to: Owners of the parent Non-controlling interest Earnings per share (in dollars) Basic earnings per share Diluted earnings per share
			$

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

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WPG HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

						Equityattributable to owners of theparent	Equityattributable to owners of theparent	Equityattributable to owners of theparent	Equityattributable to owners of theparent	Equityattributable to owners of theparent
		Share	Capital				Retained Earnings					Other	Equity Interest
														Unrealized gains
														(loss) on financial
												Exchange		assets at fair value
												differences of		through other
									Unappropriated		foreign financial			comprehensive				Non-controlling
	Notes	Common stock	Preference stock		Capital reserve	Legal reserve	Special reserve			earnings		statements			income		Total		interest			Total equity
Year ended December 31, 2019
Balance at January 1, 2019		$16,790,568	$	-	$19,454,882	$5,274,872		$4,124,936		$11,316,193	($2,596,682 )			($	6,000 )		$54,358,769	$	465,226			$54,823,995
Total consolidated profit		-		-	-	-		-		6,453,401			-		-		6,453,401		52,558			6,505,959
Net other comprehensive income (loss)	6(24)	-		-	-	-		-		10,036	(	2,818,012 )			-	(	2,807,976 )	(	846 )		(	2,808,822 )
Total comprehensive income		-		-	-	-		-		6,463,437	(	2,818,012 )			-		3,645,425		51,712			3,697,137
Appropriations and distribution of 2018	6(23)
retained earnings
Legal reserve		-		-	-	746,201		-	(	746,201 )			-		-		-			-		-
Reversal of special reserve		-		-	-	-	(	1,522,254 )		1,522,254			-		-		-			-		-
Cash dividends		-		-	-	-		-	(	4,533,453 )			-		-	(	4,533,453 )			-	(	4,533,453 )
Issuance of preference stock	6(21)	-		2,000,000	7,994,638	-		-		-			-		-		9,994,638			-		9,994,638
Changes in equity of associates and joint	6(22)
ventures accounted for using the equity
method		-		-	6,778	-		-		-			-		-		6,778			-		6,778
Changes in non-controlling interests		-		-	-	-		-		-			-		-		-	(	22,000 )		(	22,000 )
Balance at December 31, 2019		$16,790,568	$	2,000,000	$27,456,298	$6,021,073		$2,602,682		$14,022,230	($5,414,694 )			($	6,000 )		$63,472,157	$	494,938			$63,967,095
Year ended December 31, 2020
Balance at January 1, 2020		$16,790,568	$	2,000,000	$27,456,298	$6,021,073		$2,602,682		$14,022,230	($5,414,694 )			($	6,000 )		$63,472,157	$	494,938			$63,967,095
Total consolidated profit		-		-	-	-		-		8,123,355			-		-		8,123,355		77,149			8,200,504
Net other comprehensive income (loss)	6(24)	-		-	-	-		-		8,697	(	5,272,471 )			1,860,371	(	3,403,403 )	(	7,569 )		(	3,410,972 )
Total comprehensive income (loss)		-		-	-	-		-		8,132,052	(	5,272,471 )			1,860,371		4,719,952		69,580			4,789,532
Appropriations and distribution of 2019	6(23)
retained earnings
Legal reserve		-		-	-	646,344		-	(	646,344 )			-		-		-			-		-
Special reserve		-		-	-	-		2,818,012	(	2,818,012 )			-		-		-			-		-
Cash dividends for common stock		-		-	-	-		-	(	4,029,736 )			-		-	(	4,029,736 )			-	(	4,029,736 )
Cash dividends for preferred stock		-		-	-	-		-	(	115,068 )			-		-	(	115,068 )			-	(	115,068 )
Changes in equity of associates and joint	6(22)
ventures accounted for using the equity
method		-		-	1,392,435	-		-		30,182			-		-		1,422,617			-		1,422,617
Changes in non-controlling interests		-		-	-	-		-		-			-		-		-	(	31,422 )		(	31,422 )
Balance at December 31, 2020		$ 16,790,568	$	2,000,000	$ 28,848,733	$ 6,667,417		$ 5,420,694		$ 14,575,304	($ 10,687,165 )			$	1,854,371		$ 65,469,922	$	533,096			$ 66,003,018

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

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WPG HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

Cash flows from operating activities Income before income tax Adjustments Income and expenses Depreciation Amortization Expected credit impairment gain Interest expense Net gain on financial assets or liabilities at fair value through profit or loss Interest income Dividend income Other income Share of profit of associates and joint ventures accounted for using the equity method Loss on disposal of investment Loss on disposal of property, plant and equipment Loss on lease modification Changes in assets/liabilities relating to operating activities Changes in assets relating to operating activities Financial assets (liabilities) at fair value through profit or loss - current Notes receivable Accounts receivable Accounts receivable - related parties, net Other receivables Other receivables - related parties Inventories Prepayments Other current assets Changes in liabilities relating to operating activities Notes payable Accounts payable Accounts payable - related parties Other payables Other current liabilities Other non-current liabilities Cash inflow generated from operations Interest paid Income tax paid Interest received Income tax refund Dividends received Net cash provided by (used in) operating activities

Years ended December 31, Notes 2020 2019 $ 9,887,553 $ 8,187,602 6(30) 764,940 724,256 6(13)(30) 64,419 16,303 ( 22,781 ) ( 92,319 ) 6(29) 1,926,036 2,145,552 6(28) ( 172,962 ) ( 83,921 ) 6(26) ( 36,861 ) ( 55,365 ) 6(27) ( 45,510 ) ( 17,285 ) ( 6,052 ) - ( 861,661 ) ( 22,118 ) 6(28) 27,036 8 6(28) 673 1,939 6(28) 300 - 412,173 ( 300,736 ) ( 1,233,879 ) 907,790 2,427,602 ( 15,305,726 ) ( 79,601 ) ( 15,702 ) ( 1,505,619 ) ( 2,896,080 ) ( 407 ) 402 10,619,861 ( 2,950,244 ) ( 373,899 ) ( 735,455 ) ( 79,613 ) 15,541 16,009 ( 855 ) ( 752,601 ) 10,426,266 76,370 252 2,464,236 412,201 ( 1,895,933 ) 1,491,128 ( 46,414 ) ( 48,588) 21,573,415 1,804,846 ( 1,952,786 ) ( 2,193,406 ) ( 2,332,894 ) ( 1,173,322 ) 37,745 54,154 48,603 21,779 450,911 72,431 17,824,994 ( 1,413,518)

(Continued)

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WPG HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

			Years ended	December	31,
	Notes		2020		2019
Cash flows from investing activities
Acquisition of financial assets at fair value through other
comprehensive income - non-current		( $	1,706,254 )	$	-
Increase in prepayments for investments	6(14)		-	(	8,142,688 )
Acquisition of property, plant and equipment and intangible
assets	6(34)	(	6,039,506 )	(	429,587 )
Proceeds from disposal of property, plant and equipment and
intangible assets			1,663		4,097
Increase in guarantee deposits paid		(	20,536 )	(	30,566 )
Decrease in guarantee deposits paid			13,919		32,765
Decrease in other financial assets - current		(	906,341 )	(	895,975 )
Increase in other financial assets - non-current		(	1,636 )		-
(Increase) decrease in other non-current assets		(	44,447 )		65,438
Acquisition of financial assets at fair value through profit or
loss - non-current		(	26,910 )	(	102,096 )
Proceeds from disposal of financial assets at fair value
through profit or loss - non-current			-		14,971
Proceeds from capital reduction of financial assets at fair
value through profit or loss			21,833		38,203
Proceeds from capital reduction of financial assets at fair
value through other comprehensive income			7,079		-
Increase in financial assets at amortized cost - current		(	176,752 )	(	11,583 )
Decrease in financial assets at amortized cost - current			8,795		124,325
Increase in financial assets at amortised cost - non-current		(	225,681)		-
Net cash used in investing activities		(	9,094,774)	(	9,332,696)
Cash flows from financing activities
Principal repayment of lease liability	6(35)	(	433,139 )	(	432,770 )
Increase in short-term borrowings	6(35)		778,159,521		745,217,964
Decrease in short-term borrowings	6(35)	(	788,010,588 )	(	733,547,786 )
Increase in long-term borrowings (including current portion	6(35)
of long-term liabilities)			20,203,922		2,415,923
Decrease in long-term borrowings (including current portion	6(35)
of long-term liabilities)		(	7,973,802 )	(	3,439,965 )
Increase in short-term notes and bills payable	6(35)		40,807,726		39,514,147
Decrease in short-term notes and bills payable	6(35)	(	41,421,645 )	(	38,915,750 )
Increase in guarantee deposits received			247,092		9,118
Decrease in guarantee deposits received		(	156,947 )	(	8,571 )
Issuance of preference stock	6(21)		-		9,994,638
Cash dividends paid	6(23)	(	4,144,804 )	(	4,533,453 )
Change in non-controlling interests		(	31,422)	(	22,000)
Net cash (used in) provided by financing activities		(	2,754,086)		16,251,495
Effect of exchange rate changes on cash and cash equivalents		(	4,948,696)	(	2,629,587)
Net increase in cash and cash equivalents			1,027,438		2,875,694
Cash and cash equivalents at beginning of year			9,992,582		7,116,888
Cash and cash equivalents at end of year		$	11,020,020	$	9,992,582

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

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WPG HOLDINGS LIMITED AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE INDICATED)

1. HISTORY AND ORGANIZATION

• (1) WPG Holdings Limited (the Company) was incorporated as a company limited by shares under the provisions of the Company Law of the Republic of China, and as a holding company of World Peace Industrial Co., Ltd. and Silicon Application Corporation by exchanging shares of common stock on November 9, 2005. The Company’s shares were listed on the Taiwan Stock Exchange (TSE) and approved by the Financial Supervisory Commission, Executive Yuan, Securities and Futures Bureau on the same date. After restructuring, Richpower Electronic Devices Co., Ltd. became the Company’s subsidiary on January 1, 2008. The Company acquired Pernas Electronics Co., Ltd., Asian Information Technology Inc., Yosun Industrial Corp. and AECO Technology Co., Ltd. by exchanging shares of common stock on July 16, 2008, February 6, 2009, November 15, 2010 and March 1, 2012, respectively. After the Company’s organization restructuring on January 1, 2014, World Peace Industrial Co., Ltd., Silicon Application Corp. and Yosun Industrial Corp. acquired 100% shares in AECO Technology Co., Ltd., Pernas Electronics Co., Ltd. and Richpower Electronic Devices Co., Ltd. through share exchange, and consequently, AECO Technology Co., Ltd., Pernas Electronics Co., Ltd. and Richpower Electronic Devices Co., Ltd. became indirectly owned subsidiaries. The Company originally evaluated Genuine C&C, Inc. using equity method. The Company acquired partial stocks of Genuine C&C, Inc. on April 8, 2015 and completed the purchase on April 15, 2015. After the purchase, the Company held 60.5% shares of Genuine C&C, Inc. which became the Company’s directly owned subsidiary. On September 1, 2017, the stock swap between Trigold Holdings Limited (Trigold) and the shareholders who previously owned Genuine C&C, Inc. was conducted at a stock swap ratio of 1:1. On the same day, Trigold was established and began OTC trading whereas Genuine C&C, Inc. was unlisted at OTC. The Company and subsidiaries owned a total of 60.51% equity of Trigold after the stock swap. The Company and the subsidiaries included in these consolidated financial statements are collectively referred as the “Group”.

• (2) The Company was organized to create the management mechanism of the group, supervise the subsidiaries, integrate the whole group and improve operational efficiency. The Company’s subsidiaries are mainly engaged in the distribution and sales of electronic / electrical components, sales of computer software and electrical products and sales of electronic / electrical components.

• (3) As of December 31, 2020, the Company’s authorized capital was $25,000,000 (certain shares

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can be issued as preference shares, and $500,000 is reserved for employee stock option certificates, restricted stocks to employees, convertible preferred stock and convertible bonds), and the paid-in capital was $18,790,568 with a par value of $10 (in dollars) per share.

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These consolidated financial statements were authorized for issuance by the Board of Directors on March 30, 2021.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS (1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC effective from 2020 are as follows:

as follows:
	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IAS 1 and IAS 8, ‘Disclosure initiative-definition	January 1, 2020
of material’
Amendments to IFRS 3, ‘Definition of a business’	January 1, 2020
Amendments to IFRS 9, IAS 39 and IFRS 7, ‘Interest rate	January 1, 2020
benchmark reform’
Amendment to IFRS 16, ‘Covid-19-related rent concessions’	June 1, 2020(Note)
Note: Earlier application from January 1, 2020 is allowed by the FSC.

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted

by the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2021 are as follows:

as follows:
New Standards, Interpretations and Amendments Amendments to IFRS 4, ‘Extension of the temporary exemption from applying IFRS 9’ Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘Interest Rate Benchmark Reform - Phase 2’	Effective date by International Accounting Standards Board
	January 1, 2021 January 1, 2021

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

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(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs endorsed by the FSC are as follows:

IFRSs endorsed by the FSC are as follows:
New Standards, Interpretations and Amendments Amendments to IFRS 3, ‘Reference to the conceptual framework’ Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 17, ‘Insurance contracts’ Amendments to IFRS 17, ‘Insurance contracts’ Amendments to IAS 1, ‘Classification of liabilities as current or non-current’ Amendments to IAS 1, ‘Disclosure of accounting policies’ Amendments to IAS 8, ‘Definition of accounting estimates’ Amendments to IAS 16, ‘Property, plant and equipment: proceeds before intended use’ Amendments to IAS 37, ‘Onerous contracts - cost of fulfilling a contract’ Annual improvements to IFRS Standards 2018 - 2020	Effective date by International Accounting Standards Board
	January 1, 2022 To be determined by International Accounting Standards Board January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2022 January 1, 2022 January 1, 2022

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”. International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”).

(2) Basis of preparation

• A. Except for the following items, these consolidated financial statements have been prepared under the historical cost convention:

• (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

• (b) Financial assets at fair value through other comprehensive income measured at fair

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value.

  - (c) Defined benefit liabilities recognized based on the net amount of pension fund assets less present value of defined benefit obligation.

• B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

• (3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:

  • (a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

  • (b) Inter-company transactions, balances and unrealized gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

  • (c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

  • (d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity.

  • (e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. Any difference between fair value and carrying amount is recognized in profit or loss. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. All amounts previously recognized in other comprehensive income in relation to the subsidiary are reclassified to profit or loss, on

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the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognized in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

B. Subsidiaries included in the consolidated financial statements:

Name of investor WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Investment Co., Ltd. WPG Investment Co., Ltd. LaaS Holdings (Samoa) Limited LaaS Holdings (HK) Limited World Peace Industrial Co., Ltd.	Name of subsidiary Main business activities World Peace Industrial Co., Ltd. Agent and sales of electronic / electrical components Silicon Application Corporation Sales of computer software and electronic products WPG Korea Co., Ltd. Agent and sales of electronic / electrical components WPG Electronics Ltd. 〞 WPG International (CI) Limited Holding company Asian Information Technology Inc. Sales of electronic / electrical components Yosun Industrial Corp. 〞 WPG Investment Co., Ltd. Investment company Trigold Holdings Limited Holding company Trigold Holdings Limited 〞 LaaS Holdings (Samoa) Limited 〞 LaaS Holdings (HK) Limited 〞 LaaS (Dongguan) Supply Chain Management Limited Intelligent warehousing enhanced services World Peace International (BVI) Ltd. Holding company	Ownership (%) December 31, 2020 December 31, 2019 Description 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 60.50 60.50 0.01 0.01 100.00 0.00 Note 13 100.00 0.00 Note 13 100.00 0.00 Note 15 100.00 100.00

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Name of investor Name of subsidiary World Peace Industrial Co., Ltd. WPI Investment Holding (BVI) Company Ltd. World Peace Industrial Co., Ltd. Longview Technology Inc. World Peace Industrial Co., Ltd. AECO Technology Co., Ltd. AECO Technology Co., Ltd. Teco Enterprise Holding (B.V.I.) Co., Ltd. Teco Enterprise Holding (B.V.I.) Co., Ltd. AECO Electronic Co., Ltd. World Peace International (BVI) Ltd. Prime Future Technology Limited Prime Future Technology Limited World Peace International Pte. Ltd. World Peace International (BVI) Ltd. World Peace International Pte. Ltd. World Peace International Pte. Ltd. Genuine C&C (IndoChina) Pte., Ltd. World Peace International Pte. Ltd. WPG Americas Inc. World Peace International Pte. Ltd. World Peace International (South Asia) Pte Ltd. World Peace International (South Asia) Pte Ltd. World Peace International (India) Pvt., Ltd. World Peace International (South Asia) Pte Ltd. WPG C&C (Malaysia) Sdn. Bhd World Peace International (South Asia) Pte Ltd. WPG C&C (Thailand) Co., Ltd.	Main business activities Holding company Agent and sales of electronic / electrical components 〞 Investment company Trading of electronic / electrical products Holding company 〞 〞 Agent and sales of electronic / electrical components 〞 〞 〞 〞 Agent and sales of information products	Ownership (%) December 31, 2020 December 31, 2019 Description 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 0.00 100.00 Note 16 0.00 100.00 Note 16 100.00 0.00 Note 16 80.00 80.00 4.31 4.31 Note 2 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Note 3

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Name of investor World Peace International (South Asia) Pte Ltd. WPI Investment Holding (BVI) Company Ltd. WPI Investment Holding (BVI) Company Ltd. WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited Longview Technology Inc. Longview Technology Inc. Longview Technology GC Limited Long-Think International (Hong Kong) Limited Silicon Application Corporation Silicon Application Corporation Silicon Application Corporation Silicon Application Corporation Pernas Electronics Co., Ltd. Silicon Application (BVI) Corp.	Name of subsidiary WPG C&C Computers And Peripheral (India) Private Limited WPI International (Hong Kong) Limited World Peace International (Asia) Limited WPG C&C Limited AIO Components Company Limited Longview Technology GC Limited Long-Think International Co., Ltd. Long-Think International (Hong Kong) Limited Long-Think International (Shanghai) Limited Silicon Application (BVI) Corp. Win-Win Systems Ltd. SAC Components (South Asia) Pte. Ltd. Pernas Electronic Co., Ltd. Everwiner Enterprise Co., Ltd. Silicon Application Company Limited	Main business activities Agent and sales of electronic / electrical components 〞 〞 Agent and sales of information products Agent and sales of electronic / electrical components Holding company Agent and sales of electronic / electrical components 〞 〞 Holding company 〞 Sales of computer software, hardware and electronic products Agent and sales of electronic / electrical components 〞 Sales of computer software and electronic products	Ownership (%) December 31, 2020 December 31, 2019 Description 100.00 100.00 100.00 100.00 0.00 100.00 Note 14 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 0.00 100.00 Note 12 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

~22~

Name of investor Silicon Application Company Limited WPG Korea Co., Ltd. Apache Communication Inc. (B.V.I.) WPG International (CI) Limited WPG International (CI) Limited WPG International (CI) Limited WPG International (CI) Limited WPG International (CI) Limited WPG International (Hong Kong) Limited WPG International (Hong Kong) Limited WPG International (Hong Kong) Limited WPG South Asia Pte. Ltd. WPG South Asia Pte. Ltd. WPG South Asia Pte. Ltd. WPG South Asia Pte. Ltd. WPG South Asia Pte. Ltd.	Name of subsidiary Dstar Electronic Company Limited Apache Communication Inc. (B.V.I.) Apache Korea Corp. WPG International (Hong Kong) Limited WPG Americas Inc. WPG South Asia Pte. Ltd. WPG Cloud Service Limited WPG Gain Tune Ltd. WPG Electronics (Hong Kong) Limited WPG China Inc. WPG China (SZ) Inc. WPG Malaysia Sdn. Bhd WPG (Thailand) Co., Ltd. WPG India Electronics Pvt. Ltd. WPG Electronics (Philippines) Inc. WPG SCM Limited	Main business activities Sales of computer software and electronic products Investment company Sales of electronic / electrical products Holding company Agent and sales of electronic / electrical components Sales of electronic / electrical products General trading Agent for selling electronic / electrical components 〞 〞 Sales of computer software and electronic products Agent and sales of electronic / electrical components 〞 〞 〞 〞	Ownership (%) December 31, 2020 December 31, 2019 Description 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 95.69 95.69 Note 2 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Note 5 99.99 99.99 Note 7 100.00 100.00 Note 4 100.00 100.00

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Name of investor WPG South Asia Pte. Ltd. WPG Malaysia Sdn. Bhd Asian Information Technology Inc. Asian Information Technology Inc. Asian Information Technology Inc. Asian Information Technology Inc. Frontek Technology Corporation Fame Hall International Co., Ltd. Frontek International Limited Yosun Industrial Corp. Yosun Industrial Corp. Yosun Industrial Corp. Richpower Electronic Devices Co., Ltd. Richpower Electronic Devices Co., Ltd. Sertek Incorporated Suntop Investments Limited Suntop Investments Limited Yosun Hong Kong Corp. Ltd.	Name of subsidiary Main business activities WPG Vietnam Co., Ltd. Agent and sales of electronic / electrical components WPG India Electronics Pvt. Ltd. 〞 Apache Communication Inc. Sales of electronic / electrical products Henshen Electric Trading Co., Ltd. 〞 Frontek Technology Corporation 〞 Fame Hall International Co., Ltd. Investment company Frontek International Limited 〞 AIT Japan Inc. Sales of electronic / electrical products Gather Technology Incorporation Limited Sales of electronic / electrical components Sertek Incorporated 〞 Suntop Investments Limited Investment company Richpower Electronic Devices Co., Ltd. Sales of electronic / electrical components Richpower Electronic Devices Co., Limited Sales of electronic / electrical products Richpower Electronic Devices Pte., Ltd. 〞 Sertek Limited Sales of electronic / electrical components Yosun Hong Kong Corp. Ltd. 〞 Yosun Singapore Pte Ltd. 〞 Giatek Corp. Ltd. 〞	Ownership (%) December 31, 2020 December 31, 2019 Description 100.00 0.00 Note 11 0.01 0.01 Note 7 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Note 9 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 0.00 0.00 Note 6

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			Ownership (%)	Ownership (%)
		Main business	December 31,	December 31,
Name of investor	Name of subsidiary	activities	2020	2019	Description
Yosun Hong Kong Corp.	Yosun South China	Sales of electronic /	100.00	100.00
Ltd.	Corp. Ltd.	electrical components
Yosun Hong Kong Corp.	Yosun Shanghai Corp.	Warehouse	100.00	100.00
Ltd.	Ltd.	business and sales of
		electronic components
Trigold Holdings	Genuine C&C Inc.	Sales of computer and	100.00	100.00
Limited		its peripherals
Trigold Holding Limited	Trigold (Hong Kong)	Holding company	100.00	100.00
	Company Limited
Trigold (Hong Kong)	Peng Yu (Shanghai)	Sales of electronic/	100.00	100.00
Company Limited	Digital Technology	electrical products
	Co., Ltd.
Trigold (Hong Kong)	WPG C&C Shanghai	〞	100.00	100.00
Company Limited	Co., Ltd.
Triglod (Hong Kong)	Trigolduo (Shanghai)	Children’s indoor	70.00	70.00	Note 8
Company Limited	Industrial	amusement park
	Development Ltd.
Trigolduo (Shanghai)	Trigold Tongle	〞	100.00	100.00	Note 8
Industrial	(Shanghai) Industrial
Development Ltd.	Development Ltd.
Genuine C&C, Inc.	Hoban Inc.	An E-commerce	100.00	100.00
		company which
		operates B2C and O2O
		businesses
Genuine C&C, Inc.	Genuine C&C Holding	Holding company	100.00	100.00
	Inc. (Seychelles)
Genuine C&C Holding	Genuine Trading (Hong	〞	0.00	0.00	Note 10
Inc. (Seychelles)	Kong) Company
	Limited
Peng Yu (Shanghai)	Peng Yu International	Sales of	100.00	100.00
Digital Technology	Limited	electronic/electrical
Co., Ltd.		products
Note 1: The combined ownership percentage of common shares held by the					Company
and its subsidiaries is more		than 50% or has control power.
Note 2: World Peace Industrial Co., Ltd. totally held 4.31% of shares of WPG Americas
Inc. through World Peace		International Pte	Ltd. and WPI International (Hong
Kong) Limited. Along with shares of WPG Americas Inc. held					by WPG
International (CI) Limited,		the total shareholding ratio is 100%.
Note 3: Due to	restriction of local regulations, the Company			holds 51% ownership
which is	under the name of other individuals. The substantial ownership held by
the Company is 100%.
Note 4: Due to	restriction of local regulations, the Company			holds 62% ownership
which is	under the name of other individuals. The substantial ownership held by

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the Company is 100%.

• Note 5: Due to restriction of local regulations, the Company holds 61% ownership which is under the name of other individuals. The substantial ownership held by the Company is 100%.

• Note 6: It was liquidated in February 2019.

• Note 7: WPG South Asia Pte. Ltd. and WPG Malaysia Sdn. Bhd. separately hold 99.99% and 0.01% of shares of the subsidiary, respectively, and both companies together hold 100% of shares of the subsidiary.

• Note 8: On January 31, 2019, Trigold (Hong Kong) Company Limited and Haomao (Shanghai) Enterprise Development Co., Ltd. jointly established a new company, Trigolduo (Shanghai) Industrial Development Ltd. (Trigolduo_SH), and the shareholding ratio is 70%. In addition, Trigolduo_SH established a wholly-owned subsidiary, Trigold Tongle (Shanghai) Industrial Development Ltd. on March 25, 2019.

• Note 9: The subsidiary was renamed in May 2019.

• Note 10: It was liquidated in May 2019.

• Note 11: The subsidiary was established in January 2020.

• Note 12: The subsidiary was liquidated in August 2020.

• Note 13: The subsidiary was established in June 2020.

• Note 14: The subsidiary was liquidated in September 2020.

• Note 15: The subsidiary was established in August 2020.

• Note 16: World Peace International (BVI) Ltd. merged with Prime Future Technology Limited, and the effective date for the merger was set on October 31, 2020. Under the merger, World Peace International (BVI) Limited was the surviving company while Prime Future Technology Limited was the dissolved company. The equity interest in World Peace International Pte Ltd. held by Prime Future Technology Limited was transferred to World Peace International (BVI) Limited.

• C. Subsidiaries not included in the consolidated financial statements: None.

• D. Adjustments for subsidiaries with different balance sheet dates: None.

• E. Significant restrictions: None.

• F. Subsidiaries that have non-controlling interests that are material to the Group:

• As of December 31, 2020 and 2019, the non-controlling interest amounted to $533,096 and $494,938, respectively. The information on non-controlling interest and respective subsidiaries is as follows:

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	Principal		Non-controlling interest
	place	December	31, 2020 December	31, 2019
Name of subsidiary	of business	Amount	Ownership Amount	Ownership
Trigold Holdings Limited and	Taiwan	$ 495,830	39.49% $ 448,520	39.49%
its subsidiaries (Note)

Note: Details of equity interest of Trigold Holdings Limited held by the Company are provided in Note 1(1).

Summarized financial information of the subsidiaries:

(a) Balance sheets

	Balance sheets
		Trigold Holdings Limited and its subsidiaries
		December 31, 2020	December	31, 2019
	Current assets	$ 4,515,511	$ 6,471,223
	Non-current assets	356,673		351,812
	Current liabilities	( 3,387,836)	( 5,420,391)
	Non-current liabilities	( 230,216)	(	260,583)
	Total net assets	1,254,132	1,142,061
	Less: Non-controlling interest	1,131	(	7,126)
	Equity attributable to owners of the
	parent company	$ 1,255,263	$ 1,134,935
	Statements of comprehensive income
		Trigold Holdings Limited and its subsidiaries
		Years ended	December 31,
		2020	2019
	Revenue	$ 18,763,720	$ 18,141,116
	Profit before tax	296,902		189,360
	Income tax expense	( 91,851)	(	51,699)
	Profit for the year	205,051		137,661
	Other comprehensive loss, net of tax	( 10,214)	(	34,018)
	Total comprehensive income	$ 194,837	$	103,643
	Total comprehensive loss attributable
	to non-controlling interest	($ 8,257)	($	6,350)
	Dividends paid to non-controlling
	interests	$ 31,422	$	22,000

(b) Statements of comprehensive income

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(c) Statements of cash flows

Statements of cash flows
	Trigold Holdings Limited and its subsidiaries
	Years ended	December 31,
	2020	2019
Net cash provided by (used in)
operating activities	$ 2,432,108	($ 2,300,265)
Net cash used in investing activities	( 47,066)	(	47,275)
Net cash (used in) provided by
financing activities	( 1,743,911)	1,840,658
Effect of exchange rates on cash and
cash equivalents	( 15,603)	(	10,954)
Increase (decrease) in cash and cash
equivalents	625,528	(	517,836)
Cash and cash equivalents, beginning
of year	394,001		911,837
Cash and cash equivalents, end of year	$ 1,019,529	$	394,001

(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan Dollars, which is the Company’s functional and the Group’s presentation currency.

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are re-translated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognized in profit or loss.

• (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognized in other comprehensive income. However, non-monetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• (d) All foreign exchange gains and losses are presented in the statement of comprehensive income within other gains or losses.

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• B. Translation of foreign operations

• (a) The operating results and financial position of all the group entities and associates that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

  • ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

  • iii. All resulting exchange differences are recognized in other comprehensive income.

• (b) The operating results and financial position of all the overseas branches that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

  • ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period;

  • iii. Accounts with head office and working capital are translated using the historical exchange rates; and

  • iv. Exchange differences denominated in NTD arising from translation of overseas branches’ financial statements are recorded as ‘other equity – exchange differences on translation of foreign financial statements’ under shareholders’ equity,

• (c) When a foreign operation partially disposed of or sold is an associate, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, if the Group retains partial interest in the former foreign associate after losing significant influence over the former foreign associate, such transactions should be accounted for as disposal of all interest in these foreign operations.

• (d) When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, if the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in these foreign operations.

• (e) Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rates at the balance sheet date.

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(5) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

  • (a) Assets arising from operating activities that are expected to be realized, or are intended to be sold or consumed within the normal operating cycle;

  • (b) Assets held mainly for trading purposes;

  • (c) Assets that are expected to be realized within twelve months from the balance sheet date;

  • (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to pay off liabilities more than twelve months after the balance sheet date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

  • (a) Liabilities that are expected to be paid off within the normal operating cycle;

  • (b) Liabilities arising mainly from trading activities;

  • (c) Liabilities that are to be paid off within twelve months from the balance sheet date;

  • (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date.

• (6) Cash equivalents

Cash equivalents refer to short-term highly liquid investments that are readily convertible to known amount of cash and subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitment in operations are classified as cash equivalents.

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

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income. Derivatives are also categorized as financial assets held for trading unless they are designated as hedges.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognized and derecognized using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value and recognizes the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognizes the gain or loss in profit or loss.

• D. The Group recognizes the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

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

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable

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election at initial recognition to recognize changes in fair value in other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognized and derecognized using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value. The changes in fair value of equity investments that were recognized in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognized as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

• (9) Financial assets measured at amortized cost

• The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.

• (10) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(11) Impairment of financial assets

• For financial assets at amortized cost, including notes and accounts receivable that have a significant financing component, at each reporting date, the Group recognizes the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognizes the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable that do not contain a significant financing component, the Group recognizes the impairment provision for lifetime ECLs.

(12) Derecognition of financial assets

The Group derecognizes a financial asset when one of the following conditions is met:

• A. The contractual rights to receive cash flows from the financial asset expire.

• B. The contractual rights to receive cash flows from the financial asset have been transferred and the Group has transferred substantially all risks and rewards of ownership of the financial asset.

• C. The contractual rights to receive cash flows from the financial asset have been transferred and the Group has not retained control of the financial asset.

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(13) Inventories

• A. Cost of inventory purchase includes purchase price, import taxes and all the related costs involved in the process of obtaining inventory. Discounts, allowances, etc. shall be deducted from the cost of inventory purchases.

• B. Inventories are stated at the lower of cost and net realizable value. Cost is determined using the weighted-average method. The item by item approach is used in applying the lower of cost and net realizable value. The calculation of net realizable value is based on the estimated selling price in the normal course of business, net of estimated selling expenses.

• (14) Investments accounted for using the equity method / associates

• A. Associates are all entities over which the Group has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 per cent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognized at cost.

• B. The Group’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Group’s share of losses in an associate equals or exceeds the Group’s interest in the associate, including any other unsecured receivables, the Group does not recognize further losses, unless it has incurred statutory/constructive obligations or made payments on behalf of the associate.

• C. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Group’s ownership percentage of the associate, the Group recognizes change in ownership interests in the associate in ‘capital surplus’ in proportion to its ownership.

• D. Unrealized gains on transactions between the Group and its associates are eliminated to the extent of the Group’s interest in the associates. Unrealized losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

• E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• F. Upon loss of significant influence over an associate, the Group remeasures any investment

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retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognized in profit or loss.

• G. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

• H. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognized as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognized as capital surplus in relation to the associate are transferred to profit or loss proportionately.

(15) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalized.

• B. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. 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 must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change.

• E. The estimated useful lives of property, plant and equipment are as follows:

Buildings and structures	5 ~ 50 years
Transportation equipment	2 ~ 10 years
Office equipment	2 ~ 13 years
Leasehold improvements	2 ~ 17 years
Other property, plant and equipment	3 ~ 10 years

(16) Leasing arrangements (lessee) - right-of-use assets/ lease liabilities

• A. Leases are recognized as a right-of-use asset and a corresponding lease liability at the date

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at which the leased asset is available for use by the Group. For short-term leases or leases of low-value assets, lease payments are recognized as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following:

• (a) Fixed payments, less any lease incentives receivable;

• (b) Amounts expected to be payable by the lessee under residual value guarantees;

• (c) The exercise price of a purchase option, if the lessee is reasonably certain to exercise that option; and

• (d) Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

The Group subsequently measures the lease liability at amortized cost using the interest method and recognizes interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognized as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following:

• (a) The amount of the initial measurement of lease liability;

• (b) Any lease payments made at or before the commencement date;

• (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.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognized as an adjustment to the right-of-use asset.

(17) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 5~55 years.

(18) Intangible assets

• A. Goodwill

• Goodwill arises in a business combination accounted for by applying the acquisition method.

• B. Intangible assets, other than goodwill, are software and business right which are amortized on a straight-line basis over their estimated useful lives of 1~5 years.

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(19) Impairment of non-financial assets

• A. The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognized.

• B. The recoverable amounts of goodwill shall be evaluated periodically. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognized in profit or loss shall not be reversed in the following years.

• C. For the purpose of impairment testing, goodwill acquired in a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is/are expected to benefit from the synergies of the business combination. Each unit or group of units to which the goodwill is allocated represents the lowest level within the entity at which the goodwill is monitored for internal management purposes. Goodwill is monitored at the operating segment level.

(20) Borrowings

• A. Borrowings comprise long-term and short-term bank borrowings. Borrowings are recognized initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the borrowings using the effective interest method.

• B. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the drawdown occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalized as a pre-payment for liquidity services and amortized over the period of the facility to which it relates.

(21) Accounts and notes payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

• B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(22) Financial liabilities at fair value through profit or loss

• A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorized as

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financial liabilities held for trading unless they are designated as hedges.

• B. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are recognized in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognized in profit or loss.

(23) Derecognition of financial liabilities

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

(24) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

• (25) Non-hedging derivative instruments

Non-hedging derivatives are initially recognized at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognized in profit or loss.

(26) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognized as expenses in that period when the employees render service.

• B. Pensions

• (a) Defined contribution plans

For defined contribution plans, the contributions are recognized as pension expenses when they are due on an accrual basis. Prepaid contributions are recognized as an asset to the extent of a cash refund or a reduction in the future payments.

• (b) Defined benefit plans

• i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.

• ii. Remeasurements arising on defined benefit plans are recognized in other

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comprehensive income in the period in which they arise and are recorded as retained earnings.

• C. Employees’ compensation and directors’ remuneration

  • Employees’ compensation and directors’ remuneration are recognized as expenses and liabilities, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates. If employee compensation is distributed by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

• (27) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity.

• B. The current income tax charge is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates and laws that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realized or the deferred tax liability is settled.

• D. Deferred tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred tax assets are reassessed.

• E. Current income tax assets and liabilities are offset and the net amount reported in the

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balance sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to s ettle on a net basis or realize the asset and settle the liability simultaneously.

(28) Share capital

• Ordinary shares are classified as equity. The classification of preference shares is determined according to the special rights attached to preference shares based on the substance of the contract and the definition of financial liabilities and equity instruments. Preference shares are classified as liabilities when they have the basic characteristics of financial liabilities; otherwise, they are classified as equity. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.

• (29) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(30) Revenue recognition

• A. The Group sells electronic components and other related products. Revenue from the sale of goods is recognized when the Group delivers a product to the customer and there is no unfulfilled obligation that could affect the wholesaler’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the wholesaler, and either the wholesaler has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

• B. Revenue from these sales is recognized based on the price specified in the contract, net of the estimated volume discounts or sales discounts and allowances. Accumulated experience is used to estimate and provide for the volume discounts or sales discounts and allowances, using the expected value method, and revenue is only recognized to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. A refund liability is recognized for expected volume discounts or sales discounts and allowances payable to customers in relation to sales made until the end of the reporting period.

• C. A receivable is recognized when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

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(31) Business combinations

• A. The Group uses the acquisition method to account for business combinations. The consideration transferred for an acquisition is measured as the fair value of the assets transferred, liabilities incurred or assumed and equity instruments issued at the acquisition date, plus the fair value of any assets and liabilities resulting from a contingent consideration arrangement. All acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. For each business combination, the Group measures at the acquisition date components of non-controlling interests in the acquiree that are present ownership interests and entitle their holders to the proportionate share of the entity’s net assets in the event of liquidation at either fair value or the present ownership instruments’ proportionate share in the recognized amounts of the acquiree’s identifiable net assets. All other non-controlling interests should be measured at the acquisition-date fair value.

• B. The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the fair value of any previous equity interest in the acquiree over the fair value of the identifiable assets acquired and the liabilities assumed is recorded as goodwill at the acquisition date. If the total of consideration transferred, non-controlling interest in the acquire recognized and the fair value of previously held equity interest in the acquiree is less than the fair value of the identifiable assets acquired and the liabilities assumed, the difference is recognized directly in profit or loss on the acquisition date.

• (32) Operating segments

• Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Group’s accounting policies

• Revenue recognition on a net/gross basis

The Group determines whether the nature of its performance obligation is to provide the specified goods or services itself (i.e. the Group is a principal) or to arrange for the other party to provide those goods or services (i.e. the Group is an agent) based on the transaction model

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and its economic substance. The Group is a principal if it controls a promised good or service before it transfers the good or service to a customer. The Group recognizes revenue at gross amount of consideration to which it expects to be entitled in exchange for those goods or services transferred. The Group is an agent if its performance obligation is to arrange for the provision of goods or services by another party. The Group recognizes revenue at the amount of any fee or commission to which it expects to be entitled in exchange for arranging for the other party to provide its goods or services.

Indicators that the Group controls the good or service before it is provided to a customer include the following:

• A. The Group is primarily responsible for the provision of goods or services.

• B. The Group assumes the inventory risk before transferring the specified goods or services to the customer or after transferring control of the goods or services to the customer.

• C. The Group has discretion in establishing prices for the goods or services.

• (2) Critical accounting estimates and assumptions

• A. Impairment assessment of goodwill

The impairment assessment of goodwill relies on the Group’s subjective judgement, including identifying cash-generating units, allocating assets and liabilities as well as goodwill to related cash-generating units, and determining the recoverable amounts of related cash-generating units. Please refer to Note 6(13) for the information on goodwill impairment.

• B. Valuation of provision for allowance for accounts receivable

• In the process of assessing uncollectible accounts, the Group must use judgements and assumptions to determine the collectability of accounts receivable. The collectability is affected by various factors: customers’ financial conditions, the Company’s internal credit ratings, historical experience, current economic conditions, etc. When sales are not expected to be collected, the Group recognizes a specific allowance for doubtful receivables after the assessment. The assumptions and estimates of allowance for uncollectible accounts are based on concerning future events as that on the balance sheet date. Assumptions and estimates may differ from the actual results which may result in a material adjustment. Please refer to Note 12(2) for the information on assessing uncollectible accounts for doubtful receivables.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash on hand and petty cash Checking accounts deposits Demand deposits Time deposits	December 31, 2020 $ 4,683 2,539,463 7,372,219 1,103,655 $ 11,020,020	December 31, 2019 $ 4,444 806,634 8,745,631 435,873 $ 9,992,582

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• A. The Group associates with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

• B. There were no cash and cash equivalents pledged to others.

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

Items Current items: Financial assets mandatorily measured at fair value through profit or loss Listed stocks Beneficiary certificates Derivatives Valuation adjustment Financial liabilities held for trading Derivatives Non-current items: Financial assets mandatorily measured at fair value through profit or loss Listed stocks Emerging stocks Unlisted stocks Valuation adjustment (	December 31, 2020 $ 46,532 - 3,827 50,359 36,765 $ 87,124 $ 2,737 $ 119,256 49,605 1,474,855 1,643,716 296,910) ( $ 1,346,806	December 31, 2019 $ 22,547 300,000 2,513 325,060 14,589 $ 339,649 $ 16,051 $ 110,307 49,605 1,461,216 1,621,128 305,619) $ 1,315,509

• A. Amounts recognized in profit (loss) in relation to financial assets at fair value through profit or loss are listed below:

Financial assets mandatorily measured at fair value through profit or loss Equity instruments Derivatives	Years ended December 31, 2020 2019 $ 32,829 $ 22,553 140,133 61,368 $ 172,962 $ 83,921

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• B. The Group entered into contracts relating to derivative financial assets which were not accounted for under hedge accounting. The information is listed below:

accounted for under hedge accounting.	The information is listed below:	The information is listed below:
Derivative instruments Current items: Forward foreign exchange contracts - Sell - Sell-SWAP - Buy Futures Derivative instruments Current items: Forward foreign exchange contracts - Sell - Sell-SWAP - Buy Futures	December 31, 2020
	Contract amount (notional principal) (Note) Contract period EUR 500 2020.12.15~2021.01.14 USD 13,000 2020.12.22~2021.01.28 USD 16,890 2020.09.29~2021.02.25 EUR 2,500 2020.12.11~2021.01.14 $ 5,873 2020.12.30~2021.01.20 December 31, 2019	Contract period
	Contract amount (notional principal) (Note) USD 9,823 RMB 30,000 EUR 1,000 USD 19,500 USD 21,640 $ 4,819	Contract period
		2019.09.20~2020.04.29 2019.10.29~2020.02.03 2019.10.18~2020.02.26 2019.11.22~2020.02.04 2019.08.08~2020.04.15 2019.12.30~2020.01.15

• (a) Forward foreign exchange contracts

The Group entered into forward exchange contracts to manage exposures to foreign exchange rate fluctuations of import or export sales. However, the forward exchange contracts did not meet the criteria for hedge accounting. Therefore, the Group did not apply hedge accounting.

• (b) Futures

The futures which are owned by the Group are stock index futures aiming to earn the spread. As of December 31, 2020 and 2019, the balance of margin in the account were $3,147 and $12,970, and the amount of excess margin were $2,881 and $2,075, respectively.

• C. Details of the Group’s financial assets at fair value through profit or loss pledged to others as collateral are provided in Note 8.

• D. Information relating to credit risk of financial assets at fair value through profit or loss is

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provided in Note 12(2).

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

Items Non-current items: Equity instruments Listed stocks Unlisted stocks Valuation adjustment	December 31, 2020 $ 1,696,254 40,956 1,737,210 94,184 ( $ 1,831,394	December 31, 2019 $ - 38,035 38,035 6,000) $ 32,035

• A. The Group has elected to classify equity investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $1,831,394 and $32,035 as at December 31, 2020 and 2019, respectively.

• B. Amounts recognized in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

Financial assets at fair value through other comprehensive income Fair value change recognized in other comprehensive income	Years ended December 31, 2020 2019 $ 100,184 $-

• C. As at December 31, 2020 and 2019, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Group amounted to $1,737,210 and $38,035, respectively.

• D. The Group has no financial assets at fair value through other comprehensive income pledged to others as collateral.

• E. Information relating to credit risk of financial assets at fair value through other comprehensive income is provided in Note 12(2).

(4) Financial assets at amortized cost

Items Current items: Time deposits Non-current items: Earmarked repatriated funds	December 31, 2020 $ 246,682 $ 225,681	December 31, 2019 $ 84,055 $-

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• A. Amounts recognized in profit or loss in relation to financial assets at amortized cost are listed below:

listed below:
Interest income	Years ended December 31, 2020 2019 $ 3,327 $ 5,313
		2019 $ 5,313

• B. The Group’s certain offshore funds in the amount of $225,681 are restricted under the Management, Utilization, and Taxation of Repatriated Offshore Funds Act, and were reclassified as financial assets at amortized cost-non-current.

• C. Details of the Group’s financial assets at amortized cost pledged to others as collateral are provided in Note 8.

• D. Information relating to credit risk of financial assets at amortized cost is provided in Note 12(2).

(5) Notes and accounts receivable

		December 31, 2020 December 31, 2019	December 31, 2020 December 31, 2019
Notes receivable		$ 3,210,978 $	1,977,099
Less: Allowance for uncollectible accounts		( 2) (	2)
		$ 3,210,976 $	1,977,097
Accounts receivable		$ 108,939,299 $	111,578,591
Less: Allowance for uncollectible accounts		( 718,272) (	922,509)
		$ 108,221,027 $	110,656,082
A. The ageing analysis of accounts receivable and notes receivable is as follows:
	December	31, 2020 December	31, 2019
	Accounts	Notes Accounts	Notes
	receivable	receivable receivable	receivable
Not past due	$102,903,136	$ 3,207,616 $105,293,370	$ 1,954,402
One month	5,126,579	3,362 4,822,076	22,629
Two months	217,114	- 472,117	68
Three months	54,657	- 193,956	-
Four months	54,784	- 68,853	-
Over four months	583,029	- 728,219	-
	$108,939,299	$ 3,210,978 $111,578,591	$ 1,977,099

The above ageing analysis was based on the number of months past due.

• B. As of December 31, 2020, December 31, 2019 and January 1, 2019, the Group’s receivables (including notes receivable) arising from contracts with customers amounted to $112,150,277, $113,555,690 and $99,334,976, respectively.

• C. The Group has no notes and accounts receivable pledged to others as collateral.

• D. As at December 31, 2020 and 2019, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount

~44~

that best represents the Group’s notes receivable was $3,210,976 and $1,977,097, and accounts receivable was $108,221,027 and $110,656,082, respectively.

E. Information relating to credit risk of accounts receivable and notes receivable is provided in Note 12(2).

(6) Transfer of financial assets

Transferred financial assets that are derecognized in their entirety

The Group entered into factoring of accounts receivable with banks. In accordance with the contract requirements, the Group shall only be liable for the losses incurred on any commercial dispute and did not assume the risk of uncollectible accounts receivable. The Group does not have any continuing involvement in the transferred accounts receivable. The derecognized amounts had already deducted the estimated commercial disputes. The commercial papers and time deposits pledged to the banks are for losses incurred only on commercial disputes or for the banks’ practice of accounts receivable factoring. The pledged commercial papers and time deposits do not cover losses other than those arising from commercial disputes. As of December 31, 2020 and 2019, outstanding accounts receivable were as follows:

December 31, 2020

	December 31, 2020
Purchaser of accounts receivable Cathay United Bank Mega International Commercial Bank CTBC Bank E. SUN Commercial Bank Taipei Fubon Commercial Bank Yuanta Commercial Bank The Hong Kong and Shanghai Banking Corporation Limited Standard Chartered Bank Taishin International Bank Bank SinoPac Far Eastern International Bank Chang Hwa Bank DBS Bank Taiwan Cooperative Bank	Accounts receivable transferred Amount derecognized Facilities (In thousands) Amount advanced Interest rate of amount advanced $ 476,090 $ 476,090USD 50,000 $ 476,0900.75%~0.90% 2,517,967 2,517,967USD $ 137,000 540,000 2,434,6270.95%~1.30% 4,429,296 4,429,296USD 78,300 1,765,4330.70%~2.39% $ 8,129,400 2,996,154 2,996,154USD $ 187,000 20,000 1,594,4130.99%~1.18% 541,422 541,422USD $ 23,000 1,474,300 479,8450.77%~2.95% 661,197 661,197USD 36,700 127,0501.03%~1.09% 5,545,384 5,545,384USD 277,500 4,519,1060.96%~2.02% 30,320 30,320USD 3,000 - - 4,623,696 4,623,696$ 9,800,000 1,889,6310.72%~1.01% 1,593,747 1,593,747USD 77,400 361,5640.75%~0.97% 179,981 179,981USD $ 19,000 400,000 29,4471.01%~1.22% 16,287 16,287USD 16,600 9,7160.84%~0.87% 3,774,370 3,774,370USD 279,000 2,662,4920.76%~0.95% 56,508 56,508USD 3,000 12,305 1.04%	Pledged assets
		Note 1 Note 2 Note 3 Note 4 Note 5 Note 6 Note 7 None Note 8 Note 9 Note 10 Note 11 Note 12 Note 13

~45~

December 31, 2020

	December 31, 2020
Purchaser of accounts receivable Hang Seng Bank KGI Bank Bank of Taiwan Mizuho Bank	Accounts receivable transferred Amount derecognized Facilities (In thousands) Amount advanced Interest rate of amount advanced $ 4,809,876 $ 4,809,876USD 150,000 $ 4,401,5761.09%~2.59% 577,650 577,650$ 1,350,000 20,227 1.06% 2,490 2,490USD 14,000 2,490 0.8%~0.81% 206,453 206,453USD 20,000 206,453 0.98%	Pledged assets
		None Note 14 Note 15 Note 16

• Note 1: The Group has signed commercial papers amounting to USD 50,000 thousand that were pledged to others as collateral.

• Note 2: The Group has signed commercial papers amounting to USD 137,000 thousand and $540,000 that were pledged to others as collateral.

• Note 3: The Group has signed commercial papers amounting to USD 5,600 thousand and $893,640 that were pledged to others as collateral.

• Note 4: The Group has signed commercial papers amounting to USD 187,000 thousand and $20,000 that were pledged to others as collateral.

• Note 5: The Group has signed commercial papers amounting to $37,000 that were pledged to others as collateral.

• Note 6: The Group has signed commercial papers amounting to USD 36,700 thousand that were pledged to others as collateral.

• Note 7: The Group has signed commercial papers amounting to USD 271,550 thousand that were pledged to others as collateral.

• Note 8: The Group has signed commercial papers amounting to $9,800,000 that were pledged to others as collateral.

• Note 9: The Group has signed commercial papers amounting to USD 77,400 thousand that were pledged to others as collateral.

• Note 10: The Group has signed commercial papers amounting to USD 19,000 thousand and $400,000 that were pledged to others as collateral.

• Note 11: The Group has signed commercial papers amounting to USD 16,600 thousand that were pledged to others as collateral.

• Note 12: The Group has signed commercial papers amounting to USD 215,000 thousand that were pledged to others as collateral.

• Note 13: The Group has signed commercial papers amounting to USD 3,000 thousand that were pledged to others as collateral.

• Note 14: The Group has provided demand deposits amounting to $810,000 that were pledged to others as collateral.

• Note 15: The Group has signed commercial papers amounting to USD 14,000 thousand that were pledged to others as collateral.

• Note 16: The Group has signed commercial papers amounting to USD 20,000 thousand that

~46~

were pledged to others as collateral.

	December 31, 2019
Purchaser of accounts receivable Cathay United Bank Mega International Commercial Bank CTBC Bank E. SUN Commercial Bank Taipei Fubon Commercial Bank Yuanta Commercial Bank The Hong Kong and Shanghai Banking Corporation Limited Standard Chartered Bank Taishin International Bank Bank SinoPac Far Eastern International Bank Chang Hwa Bank DBS Bank Taiwan Cooperative Bank Hang Seng Bank KGI Bank Bank of Taiwan	Accounts receivable transferred Amount derecognized Facilities (In thousands) Amount advanced Interest rate of amount advanced $ 1,060,966 $ 1,060,966USD 50,000 $ 1,060,9662.72%~3.45% 3,885,859 3,885,859USD $ 133,000 540,000 3,583,6712.60%~3.70% 1,944,442 1,944,442USD 43,300 1,166,5252.05%~3.49% $ 3,202,000 2,943,332 2,943,332USD $ 173,000 20,000 1,683,7672.54%~3.39% 782,948 782,948USD $ 21,000 1,474,300 500,3771.11%~3.35% 478,727 478,727USD 39,000 374 2.95% 2,830,538 2,830,538USD 140,500 1,625,8242.10%~3.71% 35,042 35,042USD 4,520 28,7492.59%~2.80% 3,763,294 3,763,294$ 9,800,000 204,760 3.02% 302,078 302,078USD 44,900 - - 100,811 100,811USD $ 19,000 400,000 15,615 2.92% 264,749 264,749USD 25,600 205,2632.57%~3.03% 4,958,326 4,958,326USD 294,000 2,965,3572.45%~3.67% 27,094 27,094USD 3,000 20,1002.75%~2.77% 96,565 96,565USD 130,000 - - 434,446 434,446$ 1,350,000 - - 23,408 23,408USD 14,000 23,4082.78%~2.86%	Pledged assets
		Note 1 Note 2 Note 3 Note 4 Note 5 Note 6 Note 7 None Note 8 Note 9 Note 10 Note 11 Note 12 Note 13 Note 14 Note 15 Note 16

• Note 1: The Group has signed commercial papers amounting to USD 50,000 thousand that were pledged to others as collateral.

• Note 2: The Group has signed commercial papers amounting to USD 133,000 thousand and $540,000 that were pledged to others as collateral.

• Note 3: The Group has signed commercial papers amounting to USD 29,269 thousand and $320,200 that were pledged to others as collateral.

• Note 4: The Group has signed commercial papers amounting to USD 176,000 thousand and $20,000 that were pledged to others as collateral.

• Note 5: The Group has signed commercial papers amounting to $37,000 that were pledged to others as collateral.

• Note 6: The Group has signed commercial papers amounting to USD 36,700 thousand that were pledged to others as collateral.

~47~

• Note 7: The Group has signed commercial papers amounting to USD 122,850 thousand that were pledged to others as collateral.

• Note 8: The Group has signed commercial papers amounting to $9,800,000 that were pledged to others as collateral.

• Note 9: The Group has signed commercial papers amounting to USD 44,900 thousand that were pledged to others as collateral.

• Note 10: The Group has signed commercial papers amounting to USD 19,000 thousand and $400,000 that were pledged to others as collateral.

• Note 11: The Group has signed commercial papers amounting to USD 25,600 thousand that were pledged to others as collateral.

• Note 12: The Group has signed commercial papers amounting to USD 277,500 thousand that were pledged to others as collateral.

• Note 13: The Group has signed commercial papers amounting to USD 3,000 thousand that were pledged to others as collateral.

• Note 14: The Group has provided demand deposits amounting to USD 140 thousand that were pledged to others as collateral.

• Note 15: The Group has signed commercial papers amounting to $850,000 that were pledged to others as collateral.

• Note 16: The Group has signed commercial papers amounting to USD 14,000 thousand that were pledged to others as collateral.

(7) Other receivables

Retention amount of factoring accounts receivable VAT refund Others	December 31, 2020 $ 12,046,423 319,864 567,423 $ 12,933,710	December 31, 2019 $ 10,938,791 251,634 238,550 $ 11,428,975

(8) Inventories

Inventories
Inventories Inventories in transit	December 31, 2020	Book value $ 53,992,953 3,107,072 $ 57,100,025
	Cost Allowance for valuation $ 55,394,035 ($ 1,401,082) 3,107,072 - $ 58,501,107 ($ 1,401,082)

~48~

Inventories Inventories in transit	December 31, 2019	Book value $ 62,853,129 4,868,508 $ 67,721,637
	Cost Allowance for valuation $ 63,931,568 ($ 1,078,439) 4,868,508 - $ 68,800,076 ($ 1,078,439)

The cost of inventories recognized as expense for the period:

Cost of goods sold Loss on price decline in inventory (Gain) loss on physical inventory ( Cost of goods sold	Years ended December 31, 2020 2019 $ 586,188,535 $ 504,812,224 647,255 359,712 48) 1,321 $ 586,835,742 $ 505,173,257
	2020 $ 586,188,535 647,255 48) $ 586,835,742

(9) Investments accounted for using the equity method

• A. Details of investments accounted for using the equity method:

Investee company WT Microelectronics Co., Ltd. (WT) ChainPower Technology Corp. (ChainPower) Sunrise Technology Co., Ltd. Eesource Corp. (Eesource) Suzhou Xinning Bonded Warehouse Co., Ltd. Adivic Technology Co., Ltd. Suzhou Xinning Logistics Co., Ltd. Gain Tune Logistics (Shanghai) Co., Ltd. VITEC WPG Limtied AutoSys Co., Ltd. Beauteek Global Wellness Corporation Limited	December 31, 2020 $ 11,365,951 165,518 47,581 64,275 68,733 26,952 44,332 24,713 35,852 70,282 8,477 $ 11,922,666	December 31, 2019 $ - 161,169 57,680 65,785 77,270 31,975 40,299 26,370 42,104 71,090 12,400 $ 586,142

B. The basic information on the associate that is material to the Group is as follows:

Company name WT	Principal place of business Taiwan	Shareholding ratio December 31, 2020 December 31, 2019 22.47% -	Nature of relationship	Method of measurement
		December 31, 2020 22.47%
			Holding at least 20% of the voting rights	Equity method

~49~

The summarized financial information of the associate that is material to the Group is as follows:

Balance sheet

Balance sheet
	WT
	December 31, 2020
Current assets	$ 111,091,657
Non-current assets	19,744,555
Current liabilities	( 82,612,742)
Non-current liabilities	( 2,280,475)
Total net assets	$ 45,942,995
Adjustments on fair value of other
intangible and tangible assets	56,428
Total net assets after adjustments	$ 45,999,423
Share in associate’s net assets	$ 10,278,780
Goodwill (Note)	1,087,171
Carrying amount of the associate	$ 11,365,951

• Note: In February 2020, the Group held 29.9% equity interest in WT. However, WT increased its capital by issuing new shares in order to exchange shares with ASMedia Technology Inc., and the effective date for this share exchange was set on April 21, 2020, and the convertible bonds WT issued were converted to common stock. As the Group did not subscribe to the capital increase proportionately to its equity interest, the Group’s shareholding ratio of WT decreased to 22.47%, and its capital reserve increased by an $1,386,811. The Group obtained purchase price allocation report issued by an independent appraisals firm for goodwill which arose from acquiring the company’s equity interests.

For December 31, 2019: None.

Statement of comprehensive income

Revenue Profit for the period from continuing operations Other comprehensive income, net of tax Total comprehensive income for the period Dividends received from associates For the year ended December 31, 2019: None.	WT Nine months ended December 31, 2020 $ 353,152,195 3,621,190 6,569,424 $ 10,190,614 $ 369,904

~50~

• C. The carrying amount of the Group’s interests in all individually immaterial associates and the Group’s share of the operating results are summarized below:

• As of December 31, 2020 and 2019, the carrying amount of the Group’s individually immaterial associates amounted to $566,721 and $586,142, respectively.

immaterial associates amounted to $566,721	and $586,142, respectively.
Profit for the year from continuing operations Other comprehensive loss - net of tax ( Total comprehensive income	Years ended December 31, 2020 2019 $ 32,988 $ 22,118 25,280) ( 5,099) $ 7,708 $ 17,019
	2020 $ 32,988 25,280) ( $ 7,708

D. The fair value of the Group’s material associates with quoted market WT Microelectronics Co., Ltd.	prices is as follows: December 31, 2020 $ 7,137,533

• E. There was no impairment on investments accounted for using the equity method for the years ended December 31, 2020 and 2019.

• F. The Group is the single largest shareholder of WT with a 22.47% equity interest. Given the participation extent of other shareholders in the shareholders’ meeting and record of voting rights for major proposals, which indicate that the Group has no current ability to direct the relevant activities of WT, the Group has no control, but only has significant influence, over the investee.

• G. The Group is the single largest shareholder of ChainPower with a 39% equity interest. Given that a 40.49% equity interest in ChainPower is concentrated on other investors and a group vote of minority voting rights hold more shares than the Group, which indicate that the Group has no current ability to direct the relevant activities of ChainPower, the Group has no control, but only has significant influence, over the investee.

• H. The Group is the single largest shareholder of Eesource with a 40% equity interest. Given that a 43% equity interest in Eesource is concentrated on other investors and a group vote of minority voting rights hold more shares than the Group, which indicate that the Group has no current ability to direct the relevant activities of Eesource, the Group has no control, but only has significant influence, over the investee.

~51~

(10) Property, plant and equipment

							Construction in	Construction in
		Buildings					progress and
		and	Transportation	Office	Leasehold		equipment to
	Land	structures	equipment	equipment	improvements	Others	be tested		Total
Cost
At January 1, 2020	$ 2,294,712	$2,080,861	$ 12,499	$ 433,590	$ 640,775	$ 443,395	$ 1,410,680		$ 7,316,512
Additions	10,093	21,579	3,074	126,102	18,613	49,623	5,400,177		5,629,261
Disposals	-	( 856)	( 154)	( 35,924)	( 16,953)	( 1,586)		-	( 55,473)
Transfer (Note)	4,008,267	2,049,945	-	43,469	-	- ( 6,807,127)			( 705,446)
Effect due to changes in
exchange rates	( 740)	35,315	( 238)	( 2,301)	( 38,904)	( 15,363)	83		( 22,148)
At December 31, 2020	$ 6,312,332	$4,186,844	$ 15,181	$ 564,936	$ 603,531	$ 476,069	$ 3,813		$12,162,706
Accumulated depreciation and impairment
At January 1	$ 1,582	$ 640,424	$ 10,935	$ 354,723	$ 385,116	$ 188,315	$	-	$ 1,581,095
Depreciation charge	-	68,503	1,301	40,730	115,441	43,703		-	269,678
Disposals	-	( 280)	( 154)	( 35,013)	( 16,868)	( 885)		-	( 53,200)
Transfer (Note)	-	( 181,442)	-	-	-	-		-	( 181,442)
Effect due to changes in
exchange rates	-	27,657	( 229)	( 2,293)	( 34,240)	( 4,853)		-	( 13,958)
At December 31, 2020	$ 1,582	$ 554,862	$ 11,853	$ 358,147	$ 449,449	$ 226,280	$	-	$ 1,602,173
Closing net book amount as at December 31, 2020	$ 6,310,750	$3,631,982	$ 3,328	$ 206,789	$ 154,082	$ 249,789	$ 3,813		$10,560,533

Note: Inventories amounting to $1,751 were transferred to property, plant and equipment, property, plant and equipment amounting to $525,755 were transferred to investment property and unfinished construction and equipment under acceptance amounting to $4,296,037 and $2,469,372 were transferred to land and buildings and structures, respectively.

~52~

Land Buildings and structures Transportation equipment Office equipment Leasehold improvements Others Cost At January 1, 2019 $ 2,296,752 $2,122,448 $ 19,043 $ 449,661 $ 633,249 $ 438,681 Additions - 315 642 17,034 23,267 34,696 Disposals - ( 601) ( 6,919) ( 29,659) ( 1,552) ( 18,915) Transfer (Note) - - - 1,574 - - Effect due to changes in exchange rates ( 2,040) ( 41,301) ( 267) ( 5,020) ( 14,189) ( 11,067) At December 31, 2019 $ 2,294,712 $2,080,861 $ 12,499 $ 433,590 $ 640,775 $ 443,395 Accumulated depreciation and impairment At January 1 $ 1,582 $ 601,638 $ 15,215 $ 348,475 $ 274,296 $ 169,714 Depreciation charge - 52,473 2,081 37,260 120,758 41,218 Disposals - ( 424) ( 6,121) ( 27,148) ( 1,173) ( 17,992) Effect due to changes in exchange rates - ( 13,263) ( 240) ( 3,864) ( 8,765) ( 4,625) At December 31, 2019 $ 1,582 $ 640,424 $ 10,935 $ 354,723 $ 385,116 $ 188,315 Closing net book amount as at December 31 2019 $ 2,293,130 $1,440,437 $ 1,564 $ 78,867 $ 255,659 $ 255,080

Construction in progress and equipment to be tested Total $ 1,152,522 $ 7,112,356 258,158 334,112 - ( 57,646) - 1,574 - ( 73,884) $ 1,410,680 $ 7,316,512 $ - $ 1,410,920 - 253,790 - ( 52,858) - ( 30,757) $- $ 1,581,095 $ 1,410,680 $ 5,735,417

At January 1 Depreciation charge Disposals Effect due to changes in exchange rates At December 31, 2019 Closing net book amount as at December 31 2019

Note: Inventories amounting to $1,574 were transferred to property, plant and equipment.

~53~

• A. Amount of borrowing costs capitalized as part of property, plant and equipment and the range of the interest rates for such capitalization are as follows:

Amount capitalized Range of the interest rates for capitalization	Years ended December 31, 2020 2019 $ 30,812 $ 9,401 0.96%~1.09% 0.99%~1.03%
	2020 $ 30,812 0.96%~1.09%

• B. Information on property, plant and equipment that were pledged to others as collateral is provided in Note 8.

• (11) Leasing arrangements-lessee

• A. The Group leases various assets including buildings, business vehicles and multifunction printers. Rental contracts are made for periods of 1 to 20 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

• B. The carrying amounts of right-of-use assets are as follows:

		Transportation	Office
	Buildings and	equipment	equipment	Other
	structures	(Business vehicles)	(Photocopiers)	equipment	Total
Cost
At January 1, 2020	$ 1,424,648	$ 88,054	$ 27,594	$ 22,580	$1,562,876
Additions	952,409	20,809	-	18,619	991,837
Disposals	( 78,583)	( 23,754)	( 190)	( 13,970)	( 116,497)
Effect due to changes in
exchange rates	( 13,740)	149	( 479)	( 262)	( 14,332)
At December 31, 2020	$ 2,284,734	$ 85,258	$ 26,925	$ 26,967	$2,423,884
Accumulated depreciation
At January 1, 2020	$ 384,410	$ 29,555	$ 8,424	$ 11,408	$ 433,797
Depreciation charge	419,663	32,809	8,770	11,412	472,654
Disposals	( 71,039)	( 16,143)	( 190)	( 13,703)	( 101,075)
Effect due to changes in
exchange rates	( 11,879)	89	( 237)	( 159)	( 12,186)
At December 31, 2020	$ 721,155	$ 46,310	$ 16,767	$ 8,958	$ 793,190
Closing net book amount
as at December 31, 2020	$ 1,563,579	$ 38,948	$ 10,158	$ 18,009	$1,630,694

~54~

Buildings and structures Cost At January 1, 2019 $ - Modified retrospective adjustments under IFRS 16 1,325,773 Additions 192,715 Disposals ( 6,525) Effect due to changes in exchange rates ( 87,315) ( At December 31, 2019 $ 1,424,648 Accumulated depreciation At January 1, 2019 $ - Depreciation charge 397,852 Disposals ( 2,027) Effect due to changes in exchange rates ( 11,415) ( At December 31, 2019 $ 384,410 Closing net book amount as at December 31, 2020$ 1,040,238	Transportation equipment (Business vehicles) $ - 62,751 25,756 - 453) $ 88,054 $ - 29,698 - 143) ( $ 29,555 $ 58,499	Office equipment Other (Photocopiers) equipment Total $ - $ - $ - 26,570 20,708 1,435,802 907 497 219,875 - ( 247) ( 6,772) 117 1,622 ( 86,029) $ 27,594 $ 22,580 $1,562,876 $ - $ - $ - 8,515 11,589 447,654 - ( 106) ( 2,133) 91) ( 75) ( 11,724) $ 8,424 $ 11,408 $ 433,797 $ 19,170 $ 11,172 $1,129,079

• C. For the years ended December 31, 2020 and 2019, the additions to right-of-use assets were $991,837 and $219,875, respectively.

• D. Information on profit or loss in relation to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets	Years ended September 30, 2020 2019 $ 55,928 $ 49,719 40,647 32,165 2,975 2,525
	2020 $ 55,928 40,647 2,975

• E. For the years ended December 31, 2020 and 2019, the Group’s total cash outflow for leases were $532,689 and $517,179, respectively.

~55~

(12) Investment property

Cost At January 1, 2020 Transfer (Note) Effect due to changes in exchange rates At December 31, 2020 Accumulated depreciation At January 1, 2020 Depreciation charge Transfer Effect due to changes in exchange rates At December 31, 2020 Closing net book amount as at December 31, 2020 Cost At January 1, 2019 Additions Effect due to changes in exchange rates At December 31, 2019 Accumulated depreciation At January 1, 2019 Depreciation charge Effect due to changes in exchange rates At December 31, 2019 Closing net book amount as at December 31, 2019	Land $ 338,690 287,770 - $ 626,460 $ - - - - $- $ 626,460 Land $ 338,690 - - ( $ 338,690 $ - - - ( $- $ 338,690	Buildings and structures $ 929,231 419,427 13,599 $ 1,362,257 $ 207,806 22,608 181,442 3,122 $ 414,978 $ 947,279 Buildings and structures $ 960,770 126 31,665) ( $ 929,231 $ 192,214 22,812 7,220) ( $ 207,806 $ 721,425	Total $ 1,267,921 707,197 13,599 $ 1,988,717 $ 207,806 22,608 181,442 3,122 $ 414,978 $ 1,573,739 Total $ 1,299,460 126 31,665) $ 1,267,921 $ 192,214 22,812 7,220) $ 207,806 $ 1,060,115

Note: Property, plant and equipment amounting to $525,755 were transferred to investment property.

A. Rental income from investment property and direct operating expenses arising from the investment property are shown below:

investment property are shown below:
Rental revenue from investment property	Years ended December 31,
	2020 $ 43,435	2019
		$ 62,184

~56~

Direct operating expenses arising from the investment property that generated rental income during the period Direct operating expenses arising from the investment property that did not generate rental income during the period	Years ended December 31,	Years ended December 31,
	2020 $ 17,046 $ 7,106	2019
		$ 18,198
		$ 5,752

• B. The fair value of the investment property held by the Group as of December 31, 2020 and 2019 was $2,504,682 and $1,507,499, respectively. The fair value as of December 31, 2020 and 2019 was based on independent appraisers’ valuation, which was made using comparative method and income approach. Comparison method is to compare the valuation target with similar property which is traded around the valuation period. Comparison method is categorized within Level 3 in the fair value hierarchy. Valuations were made using the income approach with key assumptions as follows:

		December	31, 20209	December 31, 20199
	Discount rate	1.91%~7.5%		2.35%~7.5%
	Growth rate		0%~5%	0%~5%
	Gross margin	1.19%~3.17%		1.2%~3.2%
C.	There is no impairment loss on investment property.
D.	For investment property pledged for guarantee, please		refer to Note 8.

(13) Intangible assets

Intangible assets
	Operating	right	Software	Goodwill	Others	Total
Cost
At January 1, 2020	$ 287,532		$ 250,053	$ 5,658,880	$ 64,820	$6,261,285
Acquired separately		-	167,395	-	-	167,395
Disposals		-	( 20,951)	( 54,262)	( 23,627)	( 98,840)
Effect due to changes in
exchange rates	( 13,677)		975	( 14,180)	( 2,175)	( 29,057)
At December 31, 2020	$ 273,855		$ 397,472	$ 5,590,438	$ 39,018	$6,300,783
Accumulated amortization and	impairment
At January 1, 2020	$ 287,532		$ 217,795	$ 122,345	$ 64,762	$ 692,434
Amortization charge		-	64,419	-	-	64,419
Disposals		-	( 20,888)	( 54,262)	( 23,627)	( 98,777)
Effect due to changes in
exchange rates	( 13,677)		854	( 4,186)	( 2,117)	( 19,126)
At December 31, 2020	$ 273,855		$ 262,180	$ 63,897	$ 39,018	$ 638,950
Closing net book amount as at
December 31, 2020	$	-	$ 135,292	$ 5,526,541	$-	$5,661,833

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Operating right Software Cost At January 1, 2019 $ 294,234 $ 235,175 Acquired separately - 23,861 Disposals - ( 6,020) Effect due to changes in exchange rates ( 6,702) ( 2,963) ( At December 31, 2019 $ 287,532 $ 250,053 Accumulated amortization and impairment At January 1, 2019 $ 294,234 $ 208,732 Amortization charge - 16,303 Disposals - ( 4,772) Effect due to changes in exchange rates ( 6,702) ( 2,468) ( At December 31, 2019 $ 287,532 $ 217,795 Closing net book amount as at December 31, 2019 $- $ 32,258	Goodwill $ 5,666,777 - - 7,897) ( $ 5,658,880 $ 125,345 - - 3,000) ( $ 122,345 $ 5,536,535	Others Total $ 66,299 $6,262,485 - 23,861 - ( 6,020) 1,479) ( 19,041) $ 64,820 $6,261,285 $ 66,240 $ 694,551 - 16,303 - ( 4,772) 1,478) ( 13,648) $ 64,762 $ 692,434 $ 58 $5,568,851
At January 1, 2019 Amortization charge Disposals Effect due to changes in exchange rates ( At December 31, 2019 Closing net book amount as at December 31, 2019

The details of amortization charge are as follows:

The details of amortization charge are as follows:
Selling and marketing expenses General and administrative expenses	Years ended December 31, 2020 2019 $ 6,284 $ 3,942 58,135 12,361 $ 64,419 $ 16,303
	2020 $ 6,284 58,135 $ 64,419

• A. Goodwill is allocated as follows to the Group’s cash-generating units identified according to operating segment:

Yosun subgroup World Peace subgroup Others	December 31, 2020 $ 3,636,575 1,645,683 244,283 $ 5,526,541	December 31, 2019 $ 3,644,792 1,647,459 244,284 $ 5,536,535

• B. Goodwill is allocated to the Group’s cash-generating units identified according to operating segment. The recoverable amount of all cash-generating units has been determined based on value-in-use calculations. These calculations use pre-tax cash flow projections based on financial budgets approved by the management.

• Management determined budgeted gross margin based on past performance and its expectations of market development. The assumptions used for weighted average growth rates are based on past historical experience and expectations of the industry; the assumption used for discount rate is the weighted average capital cost of the Group. The assumption used for discount rate is the weighted average capital cost of each cash-generating unit. As of December 31, 2020 and 2019, the adopted pre-tax discount rates were 2.88%~6.35% and 4.12%~7.13%, respectively.

• C. There is no impairment loss on intangible assets.

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(14) Prepayments for investments

December 31, 2020 December 31, 2019 Prepayments for investments (Note) $ 31,050 $ 8,142,688

• Note: On November 12, 2019, the Board of Directors of the Group resolved to publicly acquire the common stocks of WT Microelectronics Co., Ltd. (WT). The public acquisition period was terminated on January 30, 2020, and the Group acquired 177,110,000 shares at a price of NT$45.8 (in dollars) per share for a total consideration of $8,111,638. The shareholding ratio of WT held by the Group constituted 29.9% of its total issued common stocks after the public acquisition. On February 6, 2020, the shares were settled, and the transaction was reclassified to ‘investments accounted for using the equity method’.

(15) Overdue receivables (shown as ‘other non-current assets’)

Overdue receivables Less: Allowance for doubtful accounts (	December 31, 2020 $ 978,510 971,636) ( $ 6,874	December 31, 2019 $ 1,026,348 946,395) $ 79,953

Movement analysis of financial assets that were impaired is as follows:

	2020	2019
	Individual provision	Individual provision
At January 1	$ 946,395	$ 927,792
Reversal of provision for impairment	( 30,234)	( 8,187)
Write-off of bad debts	( 8,955)	( 35,357)
Transferred from accounts receivable	109,622	86,488
Effect due to changes in exchange rates	( 45,192)	( 24,341)
At December 31	$ 971,636	$ 946,395

(16) Short-term borrowings

Type of borrowings Loans for overseas purchases Short-term loans Interest rate range	December 31, 2020 $ 14,815,186 44,225,361 $ 59,040,547 0.65%~7.8%	December 31, 2019 $ 20,737,137 48,154,477 $ 68,891,614 0.96%~9.75%

For information on pledged assets, please refer to Note 8.

(17) Short-term notes and bills payable

Commercial papers payable Less: Unamortized discount ( Interest rate range	December 31, 2020 $ 4,945,000 3,495) ( $ 4,941,505 0.23%~1.19%	December 31, 2019 $ 5,560,000 4,576) $ 5,555,424 0.50%~1.16%

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The abovementioned short-term notes and bills payable are guaranteed by financial institutions.

- (18) Long term borrowings

Long-term borrowings
	Borrowing
	period /
Type of borrowings	repayment term	December 31, 2020	December 31, 2019
Secured bank borrowings	2012.03.30~
(Note 1 and 4)	2040.04.30	$ 5,569,088	$ 16,341
Unsecured bank borrowings	2019.07.10~
(Note 2, 3, 5, 7, 8 and Note	2025.12.31
11~Note 14)		8,779,622	5,542,428
Commercial paper payable	2018.11.09~
(Notes 6, 9 and 10)	2023.09.04	10,750,000	7,300,000
		25,098,710	12,858,769
Less: Discount on long-term	borrowings	( 35,215)	( 25,396)
Less: Current portion of long-term borrowings
(shown as ‘other current liabilities’)		( 6,420,258)	( 5,502,585)
		$ 18,643,237	$ 7,330,788
Interest rate range		0.90%~3.49%	0.68%~3.16%

For information on pledged assets, please refer to Note 8.

• Note 1: (a) The Company had entered into a long-term agreement for twenty years with a financial institution. The pledged assets are the Nangang new buildings with a grace period of three years. The principal shall be repaid in equal monthly installments starting from April 2023.

• (b) The interest rate is the index interest rate plus 0.34% from the borrowing day to March 31, 2022, and from March 31, 2022 onwards, the interest rate shall be the index rate plus 0.45%.

• Note 2: The Company had entered into a long-term agreement for three years with a financial institution. The borrowing is payable in full at maturity in March 2023. The fixed interest rate is 1.43% from the borrowing day to March 10, 2022, and subsequently, the interest rate shall be the index interest rate plus 0.68% every three months from March 10, 2022.

• Note 3: The Company had entered into a mid-term agreement for five years with a financial institution. The interest rate shall be the index interest rate plus 0.45% from the borrowing day.

• Note 4: AIT Japan Inc., the Company’s indirect subsidiary, had entered into a long-term loan agreement for a period of ten years with the Daiwa Bank, Limited on March 28, 2012, and the facility is JPY 250,000,000. The pledged assets are land and office in Tokyo, which amount to $69,545 and $62,365, respectively. The principal should be repaid in equal monthly installments (totaling 114 months) of JPY 2,193,000 from October 31, 2012 and the last monthly installment will be JPY 2,191,000.

• Note 5: Asian Information Technology Inc., and Frontek Technology Corporation, an indirect

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subsidiary, entered into a two-year borrowing contract with Yuanta Commercial Bank in December 2018 in the amount of $300,000. The interest is repayable monthly, the principal is payable in full at maturity and the borrowings could be used and repaid any time during the valid period.

Asian Information Technology Inc. and Frontek Technology Corporation, an indirect subsidiary, have settled all payments on September 24, 2020 and November 3, 2020, respectively.

• Note 6: Silicon Application Corporation had entered into a syndicated borrowing agreement with Chang Hwa Commercial Bank and other financial institutions on June 9, 2020. The terms and conditions of the contract were as follows:

• (a) Contract term: Within three years from the first drawdown.

• (b) Facility and drawdown: The facility is $2,600,000, could be multiple drawdowns or revolving, however, the total amount at any time cannot exceed the facility amount.

• (c) Repayment: For each drawdown, the principal and the interest payable must be repaid in full at the end of that specific drawdown’s term. At the end of the contract term, the principal, interest payable and any related expense of each drawdown must be repaid in full.

• (d) Loan covenant: During the contract term, Silicon Application Corporation is required to maintain financial ratios as follows: the liquidity ratio should not be less than 100%, debt ratio should not be higher than 260%, time interest earned ratio should not be less than 2.5 and net value (net assets less intangible assets) should be maintained at or above $3,000,000.

Silicon Application Corporation met all the financial commitments stated in the contract.

• Note 7: Silicon Application Corporation had entered into a syndicated borrowing agreement with Bank of Taiwan and other financial institutions on May 16, 2017. The terms and conditions of the contract were as follows:

• (a) Contract term: Within three years from the first drawdown.

• (b) Facility and drawdown: The facility is $2,600,000, could be multiple drawdowns or revolving, however, the total amount at any time cannot exceed the facility amount.

• (c) Repayment: For each drawdown, the principal and the interest payable must be repaid in full at the end of that specific drawdown’s term. At the end of the contract term, the principal, interest payable and any related expense of each drawdown must be repaid in full.

• (d) Loan covenant: During the contract term, Silicon Application Corporation is required to maintain financial ratios as follows: the liquidity ratio should not be less than 100%, debt ratio should not be higher than 220%, time interest earned ratio should not be less than 3 and net value (net assets less intangible assets)

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should be maintained at or above $3,000,000.

Silicon Application Corporation met all the financial commitments stated in the contract.

• Note 8: World Peace Industrial Co., Ltd. (WPI), the Company’s subsidiary, had entered into a syndicated borrowing agreement with Hua Nan Commercial Bank, Mizuho Corporate Bank, E. SUN Commercial Bank, Taiwan Cooperative Bank, Chang Hwa Commercial Bank, Far Eastern International Bank and other financial institutions on August 31, 2017. The terms and conditions of the contract were as follows:

• (a) Contract term: Within three years from the first drawdown.

• (b) Facility and drawdown: The facility must be less than $7,200,000. Each drawdown amount must be no less than $100,000 or USD 3 million. The repayment period of NTD borrowing could be 30 days at the least and 180 days at the most; the repayment period of USD borrowing could be one month at the least and six months at the most.

• (c) Repayment: For each drawdown, the principal and interest must be repaid in full at the end of each drawdown’s term. For re-utilization of the revolving loan after maturity date, application should be submitted to the lead bank five days before the maturity date. Based on the credit term in the contract, all or part of the loan will be re-utilized. If the amount of drawdown is the same as the last time, the syndicate of banks would not make an additional procedure of remittance and loan, as if the borrower has actually received the loan, and uses the loan contract as proof of receipt.

• (d) Loan covenant: World Peace Industrial Co., Ltd. is required to maintain certain financial ratios based on semi-annual and annual consolidated financial statements during the contract period as follows: liquidity ratio should not be less than 100%, debt ratio should not be higher than 250%, time interest earned ratio should not be less than 2.5 and net value (net assets less intangible assets) should not be less than $10,000,000.

• The aforementioned contract matured in September 2020. World Peace Industrial Co., Ltd. met all the financial commitments stated in the contract during the contract period.

• Note 9: World Peace Industrial Co., Ltd. (WPI), the Company’s subsidiary, had entered into a financing agreement with E. SUN Commercial Bank, Mizuho Corporate Bank and Cathay United Bank and other financial institutions on October 16, 2018. WPI has to roll over commercial papers and re-utilize the loan during the contract period, up to 2021, with the maximum maturity period of 6 months for each issue as stipulated in the agreement. Therefore, borrowings of WPI were classified as long-term borrowings. The terms and conditions of the contract are as follows:

• (a) Contract term: Within three years from the first drawdown.

• (b) Facility and drawdown: The facility must be less than $10,000,000.

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• i. Each drawdown amount must not be less than $100,000 or USD 3 million. Based on the credit term in the contract, the loan can be re-utilized. The repayment period could be one or six months: One month at the least and six months at the most. Each maturity date shall be within the contract term.

• ii. During the term of agreement, WPI can roll over each credit facility within the total revolving credit facility of commercial papers amounting to $8,000,000 at 60, 90, 120, 180 days maturity or the days agreed by the lead bank and the Company with a limit of 180 days and each maturity date shall be within the contract term.

• (c) Repayment:

• i. For each drawdown, the principal and interest must be repaid in full at the end of each drawdown’s term. For re-utilization of the revolving loan after maturity date, application should be submitted to the lead bank five days before the maturity date. Based on the credit term in the contract, all or part of the loan will be re-utilized. If the amount of drawdown is the same as the last time, the syndicate of banks would not make an additional procedure of remittance and loan, as if the borrower has actually received the loan, and uses the loan contract as proof of receipt.

• ii. When the commercial papers mature, the borrower shall deposit available funds at face value on the maturity date to an account designated by clearing and settlement institutions immediately in line with Regulations Governing Centralized Securities Depository Enterprises.

• (d) Loan covenant: WPI is required to maintain certain financial ratios based on annual consolidated financial statements during the contract period as follows: liquidity ratio should not be less than 100%, debt ratio should not be higher than 250%, time interest earned ratio should not be less than 2.5 and net value (net assets less intangible assets) should not be less than $10,000,000. If the covenants are not met, right to drawdown is immediately terminated, and the lead bank can decide to take the following actions:

• i. Rescind part or all of the undrawn facility;

• ii. Request WPI to immediately repay all drawn principals, interest payable and other related payables as specified in the contract;

• iii. Demand the borrower to deposit the amounts that are equivalent to undischarged guaranteed obligations for drawdown facility of issued commercial papers under the agreement and (or) outstanding guarantees as reserve into the account designated by the bank consortium immediately;

• iv. Demand all rights of the promissory note obtained from signing of the contract.

World Peace Industrial Co., Ltd. met all the financial commitments stated in the

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contract.

• Note 10: World Peace Industrial Co., Ltd. (WPI), the Company’s subsidiary, had entered into a long-term loan agreement with Taiwan Cooperative Bank on August 18, 2020. The terms and conditions of the contract were as follows:

• (a) Contract term: Within three years from the first drawdown.

• (b) Facility and drawdown: The consolidated drawdown rate of the WPI’s facility of $10,000,000 and the facility of WPI International (Hong Kong) Limited of US$200 million shall be maintained at 40%, and the loan can be re-utilized based on the credit term in the contract.

  • i. Each drawdown amount must not be less than $50,000 or USD 1.5 million, and the amount more than $50,000 or USD 1.5 million shall be an integral multiple of $10,000 or USD 1 million or shall be the available facility during the credit period, but not available for the amount approved by the lead bank. The repayment period can be one, two, three, four, five or six month(s). However, each maturity date shall be within the contract term.

  • ii. The facility of commercial papers is $7,500,000. Each drawdown amount must not be less than $50,000, and the amount more than $50,000 shall be an integral multiple of $10,000 or shall be the available facility during the credit period, but not available for the amount approved by the lead bank. The issuance period for each drawdown can be 30, 60 and 90 days maturity or the days agreed by the lead bank and WPI with a limit of 180 days. However, each maturity date shall be within the contract term.

• (c) Repayment:

  • i. For each drawdown, the principal and interest must be repaid in full at the end of each drawdown’s term. For re-utilization of the revolving loan after maturity date, application should be submitted to the lead bank five days before the maturity date. Based on the credit term in the contract, all or part of the loan will be re-utilized. If the amount of drawdown is the same as the last time, the syndicate of banks would not make an additional procedure of remittance and loan, as if the borrower has actually received the loan, and uses the loan contract as proof of receipt.

  • ii. When the commercial papers mature, the borrower shall settle the commercial papers at face value.

• (d) Loan covenant: WPI is required to maintain certain financial ratios based on annual consolidated financial statements during the contract period as follows: liquidity ratio should not be less than 100%, debt ratio should not be higher than 250%, time interest earned ratio should not be less than 2.5 and net value (net assets less intangible assets) should not be less than $10,000,000. If the covenants are not met, right to drawdown is immediately terminated, and the following actions will be taken based on the resolution made by majority

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syndicated banks:

  - i. Rescind part or all of the undrawn facility;

  - ii. Request WPI to immediately repay all drawn principals, interest payable and other related payables as specified in the contract;

  - iii. Demand the borrower to deposit the amounts that are equivalent to undischarged guaranteed obligations for drawdown facility of issued commercial papers under the agreement and (or) outstanding guarantees as reserve into the account designated by the bank consortium immediately;

  - iv. Demand all rights of the promissory note obtained from signing of the contract.

  - World Peace Industrial Co., Ltd. met all the financial commitments stated in the contract.

• Note 11: World Peace Industrial Co., Ltd. (WPI), the Company’s subsidiary, had entered into a financing agreement with DBS Bank on July 24, 2020. The terms and conditions of the contract were as follows:

• (a) Contract term: Within three years from the first drawdown.

• (b) Facility and drawdown: The facility must be less than USD 100 million.

• (c) Repayment: For each drawdown, the principal and interest must be repaid in full at the end of each drawdown’s term.

• Note 12: On June 12, 2017, WPG Korea Co., Ltd. entered into a long-term loan agreement with Kookmin Bank for a loan of KRW 2 billion until March 15, 2020. The principal is payable in 10 quarterly installments of KRW 200 million each starting from December 15, 2017. The interest is payable quarterly.

• Note 13: On June 12, 2017, WPG Korea Co., Ltd. entered into a long-term loan agreement with Kookmin Bank for a loan of KRW 1 billion until June 15, 2020. The principal is payable in 10 quarterly installments of KRW 100 million each starting from March 15, 2018. The interest is payable quarterly.

• Note 14: On July 10, 2019, WPG Korea Co., Ltd. entered into a long-term loan agreement with Kookmin Bank for a loan of KRW 3 billion until June 15, 2022. The principal is payable in 10 quarterly installments of KRW 300 million each starting from March 15, 2020. The interest is payable quarterly.

(19) Other current liabilities

Long-term borrowings-current portion Refund liabilities Contract liabilities Others	December 31, 2020 $ 6,420,258 3,552,271 159,457 346,648 $ 10,478,634	December 31, 2019 $ 5,502,585 4,463,062 1,027,069 454,895 $ 11,447,611

• A. Refund liabilities were generated from sales discounts which is shown as ‘other current liabilities’.

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• B. Contract liabilities were generated from advance sales receipts which is shown as ‘other current liabilities’.

(20) Pensions

• A. Defined benefit plans

• (a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiaries contribute monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiaries would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is not enough to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiaries will make contribution for the deficit by next March.

  • Effective January 1, 2010, the Company and certain subsidiaries have funded defined benefit pension plans in accordance with the “Regulations on pensions of managers”, covering all managers appointed by the Company. Under the defined benefit pension plan, one unit is accrued for each year of service, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the remuneration per unit ratified during the appointed period.

• (b) The amounts recognized in the balance sheet are as follows:

Present value of defined benefit obligations Fair value of plan assets ( Net defined benefit liability (shown as ‘other non-current liabilities’)	December 31, 2020 $ 1,149,613 539,841) ( $ 609,772	December 31, 2019 $ 1,175,451 498,848) $ 676,603

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(c) Movements in net defined benefit liabilities are as follows:

	Present value
	of defined
	benefit	Fair value of	Net defined
	obligations	plan assets	benefit liability
Year ended December 31, 2020
Balance at January 1	$ 1,175,451	($ 498,848)	$ 676,603
Current service cost	7,167	-	7,167
Interest expense (income)	8,323	( 3,542)	4,781
	1,190,941	( 502,390)	688,551
Remeasurements:
Return on plan assets	-	( 11,980)	( 11,980)
Change in financial assumptions	41,993	-	41,993
Experience adjustments	( 33,538)	( 4,585)	( 38,123)
	8,455	( 16,565)	( 8,110)
Paid pension	( 38,624)	38,624	-
Direct payments charged to
Company’s account	( 11,159)	267	( 10,892)
Pension fund contribution	-	( 59,777)	( 59,777)
	( 49,783)	( 20,886)	( 70,669)
Balance at December 31	$ 1,149,613	($ 539,841)	$ 609,772
	Present value
	of defined
	benefit	Fair value of	Net defined
	obligations	plan assets	benefit liability
Year ended December 31, 2019
Balance at January 1	$ 1,172,837	($ 424,129)	$ 748,708
Current service cost	14,162	-	14,162
Interest expense (income)	10,902	( 4,091)	6,811
	1,197,901	( 428,220)	769,681
Remeasurements:
Return on plan assets	-	( 9,124)	( 9,124)
Change in financial assumptions	27,077	( 1,431)	25,646
Experience adjustments	( 21,180)	( 4,191)	( 25,371)
	5,897	( 14,746)	( 8,849)
Paid pension	( 8,480)	8,480	-
Direct payments charged to
Company’s account	( 19,867)	1,550	( 18,317)
Pension fund contribution	-	( 65,912)	( 65,912)
	( 28,347)	( 55,882)	( 84,229)
Balance at December 31	$ 1,175,451	($ 498,848)	$ 676,603

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s and its domestic subsidiaries’ defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6:

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The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company and its domestic subsidiaries have no right to participate in managing and operating that fund and hence the Company and its domestic subsidiaries are unable to disclose the classification of plan asset fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2020 and 2019 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

(e) The principal actuarial assumptions used were as follows:

Discount rate Future salary increases	Years ended December 31,	Years ended December 31,
	2020 0.3%~0.4% 2.00%~4.00%	2019
		0.6%~0.8%
		2.00%~4.00%

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience by 5th Taiwan Standard Ordinary Experience Mortality Table.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

obligation is affected. The analysis was as follows:
Discount rate	Future salary increases
Increase 1% Decrease 1%	Increase 1%	Decrease 1%
December 31, 2020
Effect on present value of
defined benefit obligation($ 93,846) $ 97,015	$ 78,107	($ 76,024)
December 31, 2019
Effect on present value of
defined benefit obligation($ 109,775) $ 113,650	$ 92,969	($ 90,440)
The sensitivity analysis above is based on one assumption which changed while the
other conditions remain unchanged. In practice, more than one		assumption may
change all at once. The method of analysing sensitivity and the method of calculating
net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

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  - (f) Expected contributions to the defined benefit pension plans of the Group for the year ended December 31, 2021 are $18,831.

  - (g) As of December 31, 2020, the weighted average duration of that retirement plan is 5~13 years.

• B. Defined contribution plans

  • (a) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on not less than 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

  • (b) Other overseas companies have defined contribution plans. Contributions for pensions and retirement allowance to independent fund administered by the government in accordance with the local pension regulations are based on a certain percentage of employees’ monthly salaries and wages. Other than the monthly contributions, the companies have no further obligations.

  • (c) The pension costs of the Group under the defined contribution pension plans for the years ended December 31, 2020 and 2019 were $270,711 and $368,106, respectively.

• (21) Share capital

• A. The Company’s authorized capital was $25,000,000, of which certain shares can be issued as preference shares. The above authorized capital include $500,000 reserved for employee stock option certificates, restricted stocks to employees, convertible preferred stock and convertible bonds. As of December 31, 2020, the paid-in capital was $18,790,568 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

• B. Movements in the number of the Company’s ordinary shares outstanding (in thousands of shares) for the years ended December 31, 2020 and 2019 are as follows:

At January 1 and December 31	2020 1,679,057	2019
		1,679,057

• C. On June 28, 2019, the Board of Directors resolved to increase its capital by issuing 200 million shares of Class A preferred stocks at the price of $50 (in dollars) per share with the effective date set on September 18, 2019 for repayment of borrowings to financial institutions and strengthening the Company’s working capital. The registration of issuance has been completed on October 3, 2019. The rights and obligations of the issuance are as follows:

• (a) Expiration date: The Company’s Class A preferred stocks are perpetual but all or certain parts are callable at any time from the next day of five years after issuance at

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the actual issue price.

• (b) Dividends: Dividends are calculated at 4% (five-year IRS rate: 0.605%+3.395%) per annum based on the issue price per share. The five-year IRS rate will be reset on the next business day of five years since issuance and every subsequent five years and the pricing effective date for rate reset is two Taipei financial industry business days prior to the IRS rate reset date. The rate index, five-year IRS rate, is the arithmetic mean of five-year IRS rates appearing on Reuters pages “TAIFXIRS” and “COSMOS3” at 11:00 a.m. (Taipei time) on the relevant pricing effective date of rate reset. If such rate cannot be obtained, the Company will determine the rate based on the reasonable market price with good faith.

• (c) Dividend distribution: Dividends are distributed once per year in the form of cash. The current year’s earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then shall be set aside as legal reserve in accordance with the Articles of Incorporation and set aside as or reversed special reserve in accordance with the Articles of Incorporation or regulations of regulatory authority. The remaining amount, if any, shall be preferentially distributed as dividends of Class A preferred stocks.

The Company has discretion in dividend distribution of Class A preferred stocks. The Company could choose not to distribute dividends of preferred stocks when resolved by the stockholders, which would not be able to lead to default if the Company has no or has insufficient current year’s earnings for distribution or has other necessary considerations. In addition, the amounts of undistributed dividends or insufficient distributed dividends will not become deferred payments in future years when the Company has earnings.

• (d) Excess dividend distribution: Besides the aforementioned dividends, the stockholders of Class A preferred stocks could not participate in the distribution of cash and capitalized assets for common stocks derived from earnings and capital surplus.

• (e) Residual property distribution: The stockholders of Class A preferred stocks have priority over stockholders of common stocks in distributing the Company’s residual property but the limit is the amount calculated by shares of outstanding preferred stocks issued and the issue price when distributing.

• (f) Right to vote and be elected: The stockholders of Class A preferred stocks have no right to vote and be elected in the stockholders’ meeting of the Company but have right to vote in the stockholders’ meeting for stockholders of Class A preferred stocks only and stockholders’ meeting regarding unfavourable matters to rights and obligations of stockholders of Class A preferred stocks.

• (g) Conversion to common stocks: Class A preferred stocks could not be converted to common stocks and the stockholders of Class A preferred stocks could not request the Company to retire the preferred stocks they held.

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• (h) The preemptive rights for stockholders of Class A preferred stocks are the same as of common stocks when the Company increases its capital by issuing new shares.

• D. On September 18, 2020, the Board of Directors of the Company resolved to increase its capital by issuing series B preference shares, and the issuing price is tentatively set at NT$50 per share, and the expected total issuance amounted to $5,000,000. The capital increase was approved by the FSC on October 21, 2020. However, in consideration of preference shares’ capital market and the Company’s overall maximum benefits, the Board of Directors of WPG Holdings Limited resolved to revoke and cancel the proposed capital increase of series B preference shares. The application for cancellation has not yet been approved by FSC.

(22) Capital surplus

• A. Pursuant to the R.O.C. Company Law, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requires that the amount of capital surplus to be capitalized as mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

• B. Details of capital surplus - stock options are as follows:

January 1 Changes in equity of associates and joint ventures accounted for using the equity method December 31 January 1 Preferred stock share premium Changes in equity of associates and joint ventures accounted for using the equity method December 31			2020	2020		Total $ 27,456,298 1,392,435 $ 28,848,733 Total $ 19,454,882 7,994,638 6,778 $ 27,456,298
	Common stock share premium $19,387,285 - $19,387,285	Preferred stock share premium $ 7,994,638 - $ 7,994,638	Recognized Treasury share changes in subsidiaries’ transaction equity $ 45,177 $ 431 - - $ 45,177 $ 431 2019		Changes in associates’ net equity $ 28,767 1,392,435 $ 1,421,202
	Common stock share premium $19,387,285 - - $19,387,285	Preferred stock share premium $ - 7,994,638 - $ 7,994,638	Treasury share transaction $ 45,177 - - $ 45,177	Recognized changes in subsidiaries’ equity $ 431 - - $ 431	Changes in associates’ net equity $ 21,989 - 6,778 $ 28,767

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(23) Retained earnings

• A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall be used to set aside as legal reserve, and set aside as special reserve in accordance with Article 41 of Securities and Exchange Act. The remainder, if any, to be appropriated shall be proposed by the Board of Directors. If cash dividends are distributed, they shall account for at least 20% of the total dividends distributed.

• Employees of the Company’s subsidiaries are entitled to receive the distribution of earnings. The terms shall be defined by the Board of Directors.

• B. Legal reserve can only be used to cover accumulated losses or issue new shares or cash to shareholders in proportion to their share ownership, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital.

• C. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

• D. On June 24, 2020 and June 28, 2019, the shareholders during their meeting resolved the distribution of 2019 and 2018 retained earnings as follows:

Legal reserve Provision for (reversal of) special reserve Cash dividends Cash dividends of preference stock	Years ended December 31
	2019 2018 Amount Dividend per share (in dollars) Amount Dividend per share (in dollars) $ 646,344 $ - $ 746,201 $ - 2,818,012 - ( 1,522,254) - 4,029,736 2.40 4,533,453 2.70 115,068 0.58 - - $ 7,609,160 $ 2.98 $ 3,757,400 $ 2.70
	Amount $ 646,344 2,818,012 4,029,736 115,068 $ 7,609,160

The above appropriations of earnings for 2019 and 2018 as resolved by the shareholders are the same with the amounts resolved by the Board of Directors.

• E. As of March 30, 2021, the appropriation of earnings for the year ended December 31, 2020 has not yet been proposed by the Board of Directors and resolved by the shareholders.

• F. For the information relating to employees’ compensation and directors’ remuneration, please refer to Note 6(31).

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(24) Other equity items

					2020
		Investments at
		fair value through
		comprehensive			Currency
		income			translation		Total
At January 1	($ 6,000)			($ 5,414,694)		($	5,420,694)
Revaluation-gross		100,184			-		100,184
Revaluation-associates		1,790,211			-		1,790,211
Revaluation transferred to
retained earnings-associates	(	30,024)			-	(	30,024)
Cumulative translation
differences:
- Group			-	(	4,870,406)	(	4,870,406)
- Tax on Group			-		6,489		6,489
- Associates			-	(	408,554)	(	408,554)
At December 31		$ 1,854,371		($ 10,687,165)		($	8,832,794)
					2019
		Investments at
		fair value through
		comprehensive			Currency
		income			translation		Total
At January 1	($ 6,000)			($ 2,596,682)		($	2,602,682)
Cumulative translation
differences:
- Group			-	(	2,816,203)	(	2,816,203)
- Tax on Group			-		3,218		3,218
- Associates			-	(	5,027)	(	5,027)
At December 31	($ 6,000)			($ 5,414,694)		($	5,420,694)

(25)	Operating revenue Years ended December 31, 2020 2019 Revenue from contracts with customers $ 609,885,871 $ 527,601,353 Disaggregation of revenue from contracts with customers	Years ended December 31,	Years ended December 31,
			2019
			$ 527,601,353

The Group derives revenue from the transfer of goods and services at a point in time in the following major product lines:

following major product lines:
Core components Analog IC and mixed signal components Discrete IC, logic IC Memory Optical components Passive connector and magnetic components Others	Years ended December 31, 2020 2019 $ 202,310,074 $ 156,144,782 93,492,227 113,860,827 80,852,236 74,881,379 126,631,458 103,263,510 59,656,956 41,465,436 33,056,264 27,531,480 13,886,656 10,453,939 $ 609,885,871 $ 527,601,353
	2020 $ 202,310,074 93,492,227 80,852,236 126,631,458 59,656,956 33,056,264 13,886,656 $ 609,885,871

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(26) Interest income

Interest income
Interest income from bank deposits Interest income from financial assets measured at amortized cost Other income Rental revenue Dividend income Other income	Years ended December 31, 2020 2019 $ 33,534 $ 50,052 3,327 5,313 $ 36,861 $ 55,365 Years ended December 31, 2020 2019 $ 55,471 $ 60,992 45,510 17,285 153,323 150,016 $ 254,304 $ 228,293
	2020 $ 55,471 45,510 153,323 $ 254,304

(27) Other income

(28) Other gains and losses

Other gains and losses
	Years ended December 31,
	2020	2019
Loss on disposal of property, plant and
equipment	($ 673)	($ 1,939)
Loss on disposal of investments	( 27,036)	( 8)
Currency exchange gain	539,379	492,573
Gain on financial assets and liabilities at fair
value through profit or loss	172,962	83,921
Loss arising from lease modifications	( 300)	-
Depreciation on investment property	( 22,608)	( 22,812)
Other losses	( 50,829)	( 35,101)
	$ 610,895	$ 516,634
Finance costs
	Years ended December 31,
	2020	2019
Interest expense:
Bank borrowings	$ 1,689,202	$ 2,154,953
Less: Capitalization of qualifying assets	( 30,812)	( 9,401)
Others	267,646	201,820
	$ 1,926,036	$ 2,347,372

(29) Finance costs

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(30) Additional information of expenses by nature

Additional information of expenses by nature
Employee benefit expense Depreciation charges Property, plant and equipment Investment property Right-of-use assets Total Amortization charges on intangible assets	Years ended December 31, 2020 2019 $ 8,167,961 $ 7,908,516 $ 269,678 $ 253,790 22,608 22,812 472,654 447,654 $ 764,940 $ 724,256 $ 64,419 $ 16,303
	2020 $ 8,167,961 $ 269,678 22,608 472,654 $ 764,940 $ 64,419

(31) Employee benefit expense

Employee benefit expense
Wages and salaries Directors’ remuneration Labor and health insurance fees Pension costs Other personnel expenses	Years ended December 31, 2020 2019 $ 7,212,908 $ 6,827,566 52,936 38,978 334,982 363,207 282,712 389,079 284,423 289,686 $ 8,167,961 $ 7,908,516
	2020 $ 7,212,908 52,936 334,982 282,712 284,423 $ 8,167,961

• A. According to the Articles of Incorporation of the Company, a ratio of profit of the current year distributable, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ remuneration. The ratio shall be between 0.01% ~5% for employees’ compensation and shall not be higher than 3% for directors’ remuneration.

• B. The Company has established the audit committee, therefore, there was no remuneration paid to supervisors for the years ended December 31, 2020 and 2019.

• C. The Company’s salary and remuneration policy:

• (a) The overall remuneration structure of the Company's remuneration policy is based on two types: "guaranteed minimum income" and "incentive bonus". The guaranteed minimum income is for employees' basic financial needs, and the incentive bonus is an actual reward to encourage employee performance. The sum of two types of remuneration is employees' total salary income provided by the Company. The proportion of guaranteed income is relatively high for employees with lower ranks, whereas the proportion of incentive bonus is relatively high for employees with higher ranks. In addition, salary payments are implemented in accordance with the company's remuneration policy, with no difference between genders, in order to uphold the spirit of gender equality.

• (b) Directors’ remuneration is specified in the Company’s Articles of Incorporation and approved by the shareholders. Under the Company’s Articles of Incorporation, the Company shall pay rewards to the Company’s directors when they perform their responsibilities on behalf of the Company no matter whether the Company had

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operating deficit. The determination of the reward to directors is authorised by the Board of Directors based on their participation frequency in the Company’s operations and contributions to the Company’s operations taking into consideration the pay level within the domestic and foreign industries. A reasonable remuneration to independent directors can be higher than non-independent directors. If the Company has earnings, directors’ remuneration shall be distributed under the Company’s Articles of Incorporation. Managers’ salary considers the Company’s operating results and performance, and is determined based on performance assessment made by the remuneration committee, taking into consideration the pay level within the same industry.

• (c) The Company’s managers serve as the Company’s directors, and the monthly salary is determined based on directors’ salary and remuneration policy.

• D. For the years ended December 31, 2020 and 2019, employees’ compensation was accrued at $39,850 and $29,850, respectively; while directors’ remuneration was accrued at $47,825 and $35,000, respectively. The aforementioned amounts were recognized in salary expenses.

The employees’ compensation and directors’ remuneration were estimated and accrued based on the profit of current year distributable for the year ended December 31, 2020, and the percentage as prescribed by the Company’s Articles of Incorporation. As of March 30, 2021, the amount has not yet been resolved by the Board of Directors.

• For 2019, the employees’ compensation and directors’ remuneration resolved by the Board of Directors during its meeting on April 28, 2020 amounted to $29,300 and $35,000, respectively, and the employees’ compensation and directors’ remuneration recognized in the 2019 financial statements amounted to $29,850 and $35,000, respectively. The difference of $550 between the amounts resolved by the Board of Directors and the amounts recognized in the 2019 financial statements, mainly resulting from the decrease in employees’ compensation, had been adjusted in profit or loss in the second quarter of 2020. The employees’ compensation was distributed in the form of cash.

• E. Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors and shareholders will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

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(32) Income tax

A. Income tax expense

(a) Components of income tax expense:

tax me tax expense Components of income tax expense:
	Years ended December 31,
	2020	2019
Current tax
Current tax on profits for the year	$ 1,729,999	$ 1,508,376
Prior year income tax (over)
underestimation	( 17,483)	16,984
Tax on undistributed surplus earnings	900	177,424
Total current tax	1,713,416	1,702,784
Deferred tax
Origination and reversal of temporary
differences	( 26,367)	( 21,141)
Total deferred tax	( 26,367)	( 21,141)
Income tax expense	$ 1,687,049	$ 1,681,643

• (b) The income tax (charge)/credit relating to components of other comprehensive loss (income) is as follows:

(income) is as follows:
	Years ended		December 31,
	2020		2019
Currency translation differences	($	6,489)	($	3,218)
Remeasurement of defined benefit
obligations		1,622		1,771
	($	4,867)	($	1,447)

B. Reconciliation between income tax expense and accounting profit:

	Years ended December 31,	Years ended December 31,	Years ended December 31,
	2020		2019
Tax calculated based on profit before tax
and statutory tax rate (Note)	$ 3,801,123	$	3,652,288
Effects from items disallowed by tax
regulation	( 2,108,126)	(	2,182,534)
Prior year income tax (over)
underestimation	( 17,483)		16,984
Tax on distributed surplus earnings	900		177,424
Others	10,635		17,481
Tax expense	$ 1,687,049	$	1,681,643

Note: The basis for computing the applicable tax rate are the rates applicable in the respective countries where the Group entities operate.

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• C. Amounts of deferred tax assets or liabilities as a result of temporary differences and tax losses are as follows:

as follows:
Temporary differences - Deferred tax assets: Unrealized allowance for inventory obsolescence Unrealized sales discount Unrealized foreign exchange loss Bad debts expense Unrealized expense Investment loss Pensions Cumulative translation adjustments Others Tax losses Temporary differences - Deferred tax liabilities: Investment income Reserve for building increment Land revaluation increment tax Pensions Cumulative translation adjustments Others				2020
	January 1 Recognized in profit or loss Recognized in other comprehensive income $ 39,556 ($ 45) $ - 56,551 1,528 - 17,438 4,656 - 63,147 ( 42,560) - 39,094 48,222 - 12,458 2,584 - 120,009 ( 9,052) ( 1,883) 14,708 - 5,967 50,767 ( 4,137) - 93,169 22,657 - 506,897 23,853 4,084 ( 424,351) ( 3,779) - ( 23,905) - - ( 30,156) - - ( 2,758) ( 334) 261 ( 522) - 522 ( 17,576) 6,627 - ( 499,268) 2,514 783 $ 7,629 $ 26,367 $ 4,867

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Temporary differences - Deferred tax assets: Unrealized allowance for inventory obsolescence Unrealized sales discount Unrealized foreign exchange loss Bad debts expense Unrealized expense Investment loss Pensions Cumulative translation adjustments Others Tax losses Temporary differences - Deferred tax liabilities: Investment income Reserve for building increment Land revaluation increment tax Pensions Cumulative translation adjustments Others				2019
	January 1 Recognized in profit or loss Recognized in other comprehensive income $ 46,755 ($ 7,199) $ - 57,494 ( 943) - 1,161 16,277 - 20,387 42,760 - 76,504 ( 37,410) - 13,227 ( 769) - 127,993 ( 7,031) ( 953) 11,275 - 3,433 39,826 10,941 - 87,415 5,754 - 482,037 22,380 2,480 ( 427,256) 2,905 - ( 23,905) - - ( 30,156) - - ( 1,930) ( 10) ( 818) ( 307) - ( 215) ( 13,442) ( 4,134) - ( 496,996) ( 1,239) ( 1,033) ($ 14,959) $ 21,141 $ 1,447

• D. The amounts of deductible temporary differences and tax losses that were not recognized as deferred tax assets are as follows:

deferred tax assets are as follows:
Deductible temporary differences Tax losses	December 31, 2020 $ 39,434 $ 1,311,347	December 31, 2019
		$ 47,570
		$ 1,598,772

The deductible temporary differences belong to overseas subsidiaries that cannot be realized as deferred tax assets in the near future.

• E. As of March 30, 2021, the Company’s income tax returns through 2016 have been assessed and approved by the Tax Authority.

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(33) Earnings per share

Earnings per share
Year ended December 31, 2020 Amount after tax Weighted average number of ordinary shares outstanding (shares in thousands) Earnings per share (in dollars) Basic earnings per share Profit attributable to ordinary shareholders of the parent (Note) $ 8,008,287 1,679,057 $ 4.77 Diluted earnings per share Profit attributable to ordinary shareholders of the parent (Note) $ 8,008,287 1,679,057 Assumed conversion of all dilutive potential ordinary shares Employees’ compensation - 1,178 Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares $ 8,008,287 1,680,235 $ 4.77	Year ended December 31, 2020
		Weighted average number of ordinary shares outstanding (shares in thousands) 1,679,057 1,679,057 1,178 1,680,235	Earnings per share (in dollars)
			$ 4.77
			$ 4.77

Note: On June 24, 2020, the dividends of preferred stocks amounting to $115,068 were deducted from the profit of the parent after being approved at the stockholders’ meeting as the Company has discretion in dividend distribution of Class A preferred stocks.

Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Year ended December 31, 2019	Year ended December 31, 2019	Year ended December 31, 2019
	Amount after tax $ 6,453,401 $ 6,453,401 - $ 6,453,401	Weighted average number of ordinary shares outstanding (shares in thousands) 1,679,057 1,679,057 908 1,679,965	Earnings per share (in dollars)
			$ 3.84
			$ 3.84

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(34) Supplemental cash flow information

Partial payment of cash from investing activities

	Year ended December 31,	Year ended December 31,	Year ended December 31,
	2020		2019
Acquisition of property, plant and equipment,
investment property and intangible assets	$ 5,796,656	$	358,099
Add: Accounts payable at the beginning of the
year	1,031		-
Prepayments for business facilities at the
end of the year	416,570		72,519
Less: Prepayments for business facilities at the
beginning of the year	( 72,519)		-
Accounts payable at the end of year	( 102,232)	(	1,031)
Cash paid during the year	$ 6,039,506	$	429,587

(35) Changes in liabilities from financing activities

Short-term Short-term notes and Long-term borrowings Lease borrowings bills payable (Note) liabilities At January 1, 2020 $68,891,614 $5,555,424 $12,833,373 $1,157,543 Changes in cash flow from financing activities ( 9,851,067) ( 613,919) 12,230,120 ( 433,139) Others - - - 970,704 At December 31, 2020$59,040,547 $4,941,505 $25,063,493 $1,695,108 Short-term Short-term notes and Long-term borrowings Lease borrowings bills payable (Note) liabilities At January 1, 2019 $57,221,436 $4,957,027 $13,857,415 $ - Modified retrospective adjustments under IFRS 16 - - - 1,435,802 Changes in cash flow from financing activities 11,670,178 598,397 ( 1,024,042) ( 432,770) Others - - - 154,511 At December 31, 2019$68,891,614 $5,555,424 $12,833,373 $1,157,543

Liabilities from financing activities-gross $ 88,437,954 1,331,995 970,704 $ 90,740,653 Liabilities from financing activities-gross $ 76,035,878 1,435,802 10,811,763 154,511 $ 88,437,954

Note: Including long-term borrowings-current portion less unamortized discounts.

7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

The Group’s shares are widely held so the Company has no ultimate parent and ultimate controlling party.

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(2) Names of related parties and relationship

Names of related parties Relationship with the Group

Chain Power Technology Corp. Investee accounted for using the equity method VITEC WPG Limited 〞 Gain Tune Logistics (Shanghai) Co., Ltd. 〞 Suzhou Xinning Logistics Co., Ltd. 〞 Suzhou Xinning Bonded Warehouse Co., Ltd. 〞 Eesource Corp. 〞 WT Microelectronics Co., Ltd. 〞 Haomao (Shanghai) Enterprise Development Co., Other related party Ltd. Autosys Co., Ltd. Subsidiary of investee accounted for using the equity method HongTech Electronics Co., Ltd. 〞 Maxtek Technology Co., Ltd. 〞 Morrihan International Corp. 〞 WT Microelectronics (Hong Kong) Limited 〞 NuVision Technology, Inc. 〞 WPG P.T. Electrindo Jaya Stockholder of a Group’s subsidiary accounted for using the equity method WPG Holdings Education Foundation One third of paid-in-capital was granted by the Group

(3) Significant transactions and balances with related parties

A. Operating revenues

Operating revenues
Sales of goods Others Associates	Year ended December 31, 2020 2019 $ 542,155 $ 650,047 576,467 154,957 $ 1,118,622 $ 805,004
	2020 $ 542,155 576,467 $ 1,118,622

The terms and sales prices with other related parties were negotiated in consideration of different factors including product, cost, market, competition and other conditions. The collection period was 90 days. Terms and sales prices with associates are in accordance with normal selling prices and terms of collection.

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B. Purchases

Purchases
Purchases of goods Associates	Year ended December 31,
	2020 $ 342,748	2019
		$ 1,056

The purchase prices and terms of payment for associates including products, market competition and other conditions are the same as those for general suppliers.

C. Receivables from related parties

Accounts receivable Others Associates	December 31, 2020 $ 133,462 44,431 $ 177,893	December 31, 2019 $ 81,751 16,541 $ 98,292

The receivables from related parties arise mainly from sales of goods. The receivables are due 30 to 90 days after the date of sale. The receivables are unsecured in nature and bear no interest. There is no allowance for doubtful accounts held against receivables from related parties.

D. Other receivables

Other receivables
December 31, 2020 Other receivables Others $ 1,615 The above represents receivables from payments on behalf of others. Payables to related parties December 31, 2020 Accounts payable Associates $ 77,023	December 31, 2019
	$ 1,208
	December 31, 2019
	$ 653

E. Payables to related parties

The payables to related parties arise mainly from purchases of goods. The payables are due 30 to 90 days after the date of purchase. The payables are unsecured in nature and bear no interest.

F. Endorsements and guarantees provided to related parties

Associates VITEC WPG Limited	December 31, 2020 $ 64,080	December 31, 2019
		$ 67,455

G. Others

The Group’s donations to WPG Holding Education Foundation were $6,730 and $7,100 for the years ended December 31, 2020 and 2019, respectively.

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(4) Key management compensation

Key management compensation
Salaries and other short-term employee benefits Post-employment benefits	Year ended December 31, 2020 2019 $ 258,174 $ 218,646 3,048 2,653 $ 261,222 $ 221,299
	2020 $ 258,174 3,048 $ 261,222

8. PLEDGED ASSETS

Pledged assets (Note 1) December 31, 2020 December 31, 2019 Purpose of Collateral Financial assets at amortized cost

-Time deposits $ 43,048 $ 41,773 Security for purchases and time deposit for performance bond Financial assets at fair value 7,503 7,503 Security for purchases though profit or loss - non-current (Note 2) Property, plant and equipment (including investment property) -Land 5,178,570 1,109,543 Long-term and short-term borrowings guarantee and security for purchases -Buildings and structures 2,807,578 558,234 〞 $ 8,036,699 $ 1,717,053

Note 1: The Company held 100% of shares of WPG Investment Co., Ltd., in which 8,999 thousand shares have been pledged for purchases as of December 31, 2020 and 2019.

Note 2: As of December 31, 2020 and 2019, the subsidiary - Silicon Application Corporation held 566 thousand shares of Kingmax Technology Inc., which have been pledged for purchases.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

In addition to Note 6(6), other commitments were as follows:

• (1) Contingencies

None.

(2) Commitments

• A. Capital expenditures contracted for at the balance sheet date but not yet incurred are as follows:

December 31, 2020 December 31, 2019 Property, plant and equipment and intangible assets $ - $ 5,081,991

• B. The Group’s letters of credit issued but not negotiated are as follows:

December 31, 2020 $ 1,269,531 USD 126,213,000	December 31, 2019 $ 767,624 USD 106,583,000

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• C. As of December 31, 2020, the remaining payments for the contract of non-fixed car park the Group entered into amounted to $40,800.

10. SIGNIFICANT DISASTER LOSS

• None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

Please refer to Note 6(21) D. for further information.

12. OTHERS

(1) Capital risk management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or manage operating capital effectively to reduce debt.

(2) Financial instruments

A. Financial instruments by category

Financial assets Financial assets measured at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortized cost Cash and cash equivalents Financial assets at amortized cost Notes receivable Accounts receivable (including related parties) Other receivables (including related parties) Guarantee deposits paid Other financial assets	December 31, 2020 $ 1,433,930 $ 1,831,394 $ 11,020,020 472,363 3,210,976 108,398,920 12,935,325 183,918 2,304,294 $ 138,525,816	December 31, 2019 $ 1,655,158 $ 32,035 $ 9,992,582 84,055 1,977,097 110,754,374 12,168,174 180,123 1,399,588 $ 136,555,993

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Financial liabilities Financial liabilities measured at fair value through profit or loss Financial liabilities held for trading Financial liabilities at amortized cost Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable (including related parties) Other payables Long-term borrowings (including current portion) Guarantee deposits received Lease liabilities	December 31, 2020 $ 2,737 $ 59,040,547 4,941,505 50,651 62,912,592 8,033,574 25,063,495 174,142 $ 160,216,506 $ 1,695,108	December 31, 2019 $ 16,051 $ 68,891,614 5,555,424 34,642 63,588,823 5,697,289 12,833,373 88,946 $ 156,690,111 $ 1,157,543

• B. Risk management policies

• (a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. To minimize any adverse effects on the financial performance of the Group, derivative financial instruments, such as foreign exchange forward contracts, are used to hedge certain exchange rate risk. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments.

• (b) Risk management is carried out by a central treasury department (Group treasury) under policies approved by the Board of Directors. Group treasury identifies, evaluates and hedges financial risks in close cooperation with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

• (c) Information about derivative financial instruments that are used to hedge certain exchange rate risk are provided in Note 6(2).

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• i. The Group operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries used in various currency, primarily with respect to the USD and RMB. Exchange rate risk arises from future commercial transactions and recognized assets and liabilities.

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• ii. Management has set up a policy to require group companies to manage their foreign exchange risk against their functional currency. The companies are required to hedge their entire foreign exchange risk exposure with the Group treasury. Exchange rate risk is measured through a forecast of highly probable USD and RMB expenditures. Forward foreign exchange contracts are adopted to minimize the volatility of the exchange rate affecting cost of forecast inventory purchase.

• iii. The Group hedges foreign exchange rate by using forward exchange contracts. However, the Group does not adopt hedging accounting. Details of financial assets or liabilities at fair value through profit or loss are provided in Note 6(2).

• iv. The Group’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: NTD; other certain foreign subsidiaries’ functional currency: local currency). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

December 31, 2020

(Foreign currency: functional currency) Financial assets Monetary items USD：TWD USD：RMB USD：KRW HKD：USD RMB：USD Non-monetary items RMB：USD Financial liabilities Monetary items USD：TWD USD：RMB USD：KRW USD：INR HKD：USD RMB：USD	Foreign currency amount (in thousands) $ 634,783 18,643 33,008 60,423 796,418 31,478 529,621 84,500 18,782 7,047 59,235 869,272	Exchange rate 28.48 6.51 1,088.00 0.13 0.15 0.15 28.48 6.51 1,088.00 73.15 0.13 0.15	Book value (NTD) $ 18,078,612 530,946 940,079 221,932 3,485,922 137,778 15,083,609 2,406,558 534,903 200,686 217,571 3,804,801

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(Foreign currency: functional currency) Financial assets Monetary items USD：TWD USD：RMB USD：KRW HKD：USD Non-monetary items RMB：USD Financial liabilities Monetary items USD：TWD USD：RMB USD：KRW HKD：USD	December 31, 2019	December 31, 2019	Book value (NTD) $ 15,052,173 557,652 933,487 239,894 143,939 14,376,435 2,208,672 743,176 153,761
	Foreign currency amount (in thousands) $ 502,074 18,601 31,137 62,326 33,435 479,534 73,672 24,789 39,948	Exchange rate 29.98 6.96 1,145.59 0.13 0.14 29.98 6.96 1,145.59 0.13

v. The total exchange gain, including realized and unrealized arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2020 and 2019 amounted to $539,379 and $492,573, respectively.

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vi. Analysis of foreign currency market risk arising from significant foreign exchange variation:

variation:
(Foreign currency: functional currency) Financial assets Monetary items USD：TWD USD：RMB USD：KRW HKD：USD RMB：USD Financial liabilities Monetary items USD：TWD USD：RMB USD：KRW USD：INR HKD：USD RMB：USD (Foreign currency: functional currency) Financial assets Monetary items USD：TWD USD：RMB USD：KRW HKD：USD Financial liabilities Monetary items USD：TWD USD：RMB USD：KRW HKD：USD Price risk	Year ended December 31, 2020
		Sensitivity Analysis
	Degree of Variation Effect on Profit or Loss 1% $ 180,786 1% 5,309 1% 9,401 1% 2,219 1% 34,859 1% 150,836 1% 24,066 1% 5,349 1% 2,007 1% 2,176 1% 38,048 Year ended December		Effect on Other Comprehensive Income
	Degree of Variation 1% 1% 1% 1% 1% 1% 1% 1%	Effect on Profit or Loss $ 150,522 5,577 9,335 2,399 143,764 22,087 7,432 1,538	Effect on Other Comprehensive Income
			$ - - - - - - - -

i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through

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other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.

• ii. Shares and open-end funds which the Group invested are issued by the domestic and foreign companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, post-tax profit for the years ended December 31, 2020 and 2019 would have increased/ decreased by $14,301 and $13,526, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $18,314 and $320, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

• i. The Group’s main interest rate risk arises from short-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. For the years ended December 31, 2020 and 2019, the Group’s borrowings at variable rate were mainly denominated in New Taiwan dollars, US Dollars and KRW dollars.

• ii. If the borrowing interest rate had increased by 1% with all other variables held constant, profit, net of tax for the years ended December 31, 2020 and 2019 would have decreased by $201,557 and $302,641, respectively. The main factor is that changes in interest expense result from floating rate borrowings.

• (b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of notes receivable.

• ii. The Group manages its credit risk taking into consideration the entire group’s concern. For banks and financial institutions, only independently rated parties with good rating are accepted. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings. The utilisation of credit limits is regularly monitored.

• iii. Under IFRS 9, if the contract payments are past due over one month based on the terms, there has been a significant increase in credit risk on that instrument since

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initial recognition.

• iv. The default occurs when the contract payments are past due more than five months.

• v. The Group classifies customer’s accounts receivable in accordance with credit rating of customer and customer types. The Group applies the simplified approach using the provision matrix based on the loss rate methodology to estimate expected credit loss.

• vi. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

• vii. The Group used the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable. On December 31, 2020 and 2019, the provision matrix and loss rate methodology are as follows:

• (i) Accounts receivable from general customers:

Not past due December 31, 2020 Expected loss rate 0%~ 12.89% Total book value$ 52,861,070 Loss allowance $ 108,696 Not past due December 31, 2019 Expected loss rate 0%~ 14.847% Total book value$ 49,651,277 Loss allowance $ 89,954	Not past due	One month past due	Two months past due 1.182%~ 91.667% $ 148,295	Three months past due 11.935%~ 100% $ 39,001 $ 8,439 Three months past due 6.516%~ 100% $ 89,300 $ 53,877	Four months past due	Over four months past due 100% $ 515,035	Total
		0.003%~ 58.333% $ 1,762,414			27.568%~ 100% $ 25,795		$ 55,351,610
	$ 108,696	$ 42,336	$ 18,007		$ 9,342	$ 515,035	$ 701,855
	Not past due	One month past due	Two months past due 1.363%~ 100% $ 338,028		Four months past due 30.147%~ 100% $ 61,643	Over four months past due 100% $ 470,899	Total
		0.12%~ 85.804% $ 3,458,793					$ 54,069,940
	$ 89,954	$ 60,060	$ 47,054		$ 26,675	$ 470,899	$ 748,519

• (ii) Individually impaired and provisioned allowance for loss

Individual

Total book value Loss allowance	December 31, 2020 $ 28,829 $ 16,417	December 31, 2019
		$ 179,647
		$ 173,990

• (iii) For customers whose current ratio, debt ratio, earnings, etc. are within a certain range:

Expected loss rate Total book value Loss allowance	December 31, 2020 0% $ 53,558,860 $-	December 31, 2019 0% $ 57,329,004 $-

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viii. Movements in relation to the Group applying the simplified approach to provide loss allowance for notes and accounts receivable are as follows:

				2020
	Notes
	receivable		Accounts receivable
	Individual		Individual	Group
	provision		provision	provision		Subtotal	Total
At January 1	$	2	$ 173,990	$ 748,519	$	922,509	$ 922,511
(Reversal of) provision
for impairment		-	( 112,887)	120,340		7,453	7,453
Write-offs during the year		-	( 536)	( 58,068)	(	58,604)	( 58,604)
Effect of foreign exchange		-	( 34,908)	( 8,556)	(	43,464)	( 43,464)
Transfers into overdue
receivables		-	( 9,242)	( 100,380)	(	109,622)	( 109,622)
At December 31	$	2	$ 16,417	$ 701,855	$	718,272	$ 718,274
				2019
	Notes
	receivable		Accounts receivable
	Individual		Individual	Group
	provision		provision	provision		Subtotal	Total
At January 1	$ 2,346		$ 464,499	$ 725,207	$1,189,706		$1,192,052
(Reversal of) provision
for impairment	( 497)		( 205,142)	121,507	(	83,635)	( 84,132)
Write-offs during the year		-	( 415)	( 65,925)	(	66,340)	( 66,340)
Effect of foreign exchange	( 1,847)		( 4,256)	( 26,478)	(	30,734)	( 32,581)
Transfers into overdue
receivables		-	( 80,696)	( 5,792)	(	86,488)	( 86,488)
At December 31	$	2	$ 173,990	$ 748,519	$	922,509	$ 922,511

• (c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Group. Each treasury department monitors rolling forecasts of the liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans and covenant compliance.

• ii. The table below analyses the Group’s non-derivative financial liabilities and net-settled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

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Non-derivative financial liabilities:

December 31, 2020 Less than 1 year Short-term borrowings $ 59,156,950 Short-term notes and bills payable 4,945,000 Financial liabilities measured at fair value through profit or loss 2,737 Notes payable 50,651 Accounts payable 62,835,569 Accounts payable - related parties 77,023 Other payables 8,033,574 Lease liabilities 495,133 Long-term borrowings (including current portion) 6,629,954 Non-derivative financial liabilities: December 31, 2019 Less than 1 year Short-term borrowings $ 69,231,969 Short-term notes and bills payable 5,560,000 Financial liabilities measured at fair value through profit or loss 16,051 Notes payable 34,642 Accounts payable 63,588,170 Accounts payable - related parties 653 Other payables 5,697,289 Lease liabilities 476,832 Long-term borrowings (including current portion) 5,631,937	Between 1 and 2 years $ - - - - - - - 289,266 345,716 Between 1 and 2 years $ - - - - - - - 459,436 7,381,807	Between 2 and 5 years $ - - - - - - - 357,138 14,082,247 Between 2 and 5 years $ - - - - - - - 293,421 88,615	Over 5 years $ - - - - - - - 1,139,302 5,183,286 Over 5 years $ - - - - - - - 43,714 -

(3) Fair value information

• A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

Level 1: Inputs that are quoted prices (unadjusted) in active markets for identical assets or liabilities. A market is regarded as active if it meets all the following conditions:

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the items traded in the market are homogeneous; willing buyers and sellers can normally be found at any time; and prices are available to the public. The fair value of the Group’s investment in listed stocks is included in Level 1.

• Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices). The fair value of the Group’s investment in emerging stocks, publicly traded equity investment, forward exchange, beneficiary certificates and swap contracts is included in Level 2.

• Level 3: Inputs for the asset or liability that are not based on observable market data. The fair value of the Group’s investment in equity investment without active market is included in Level 3.

• B. Fair value information of investment property at cost is provided in Note 6(12).

• C. The carrying amounts of financial instruments not measured at fair value including cash and cash equivalents, notes receivable, accounts receivable (including related parties), other receivables (including related parties), other financial assets, guarantee deposits paid, financial assets at amortized cost, short-term borrowings, short-term notes and bills payable, notes payable, accounts payable (including related parties), other payables, lease liabilities (including current and non-current), long-term borrowings-current portion, long-term borrowings and guarantee deposits received are approximate to their fair values.

• D. The related information on financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities is as follows:

(a) The related information on the nature of the assets and liabilities is as follows: December 31, 2020 Level 1 Level 2 Level 3 Total Assets Recurring fair value measurements Financial assets at fair value through profit or loss Forward exchange contracts $ - $ 3,827 $ - $ 3,827 Equity securities 246,491 33,317 1,150,295 1,430,103 Financial assets at fair value through other comprehensive income Equity securities 1,796,437 - 34,957 1,831,394 $2,042,928 $ 37,144 $1,185,252 $3,265,324 Liabilities Recurring fair value measurements Financial liabilities held for trading Forward exchange contracts and options $ - $ 2,737 $ - $ 2,737

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December 31, 2019 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Forward exchange contracts Beneficiary certificates Equity securities Financial assets at fair value through other comprehensive income Equity securities Liabilities Recurring fair value measurements Financial liabilities held for trading Forward exchange contracts	Level 1 $ - - 166,625 - $ 166,625 $-	Level 2 $ 2,513 300,054 33,103 - $ 335,670 $ 16,051	Level 3 $ - - 1,152,863 32,035 $1,184,898 $-	Total $ 2,513 300,054 1,352,591 32,035 $1,687,193 $ 16,051

• (b) The methods and assumptions the Group used to measure fair value are as follows:

• i. The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Listed shares Market quoted price Closing price

• ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques widely accepted in financial management.

• iii. When assessing non-standard and low-complexity financial instruments, for example, foreign exchange swap contracts, the Group adopts valuation technique that is widely used by market participants. The inputs used in the valuation method to measure these financial instruments are normally observable in the market.

• iv. Forward exchange contracts are usually valued based on the current forward exchange rate.

• v. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs. In accordance with the Group’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The

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inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

• vi. The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group’s credit quality.

• E. The following chart is the movement of Level 3 for the years ended December 31, 2020 and 2019:

2019:
	2020	2019
At January 1	$ 1,184,898	$ 1,142,927
Additions	36,910	102,096
Capital reduction	( 28,912)	( 36,777)
Transfer out from level 3	-	( 10,000)
Transfer into level 3	-	10,000
Losses on valuation	( 16,739)	( 1,188)
Effect of foreign exchange	9,095	( 22,160)
At December 31	$ 1,185,252	$ 1,184,898

• F. In the third quarter of 2019, transfers out from Level 3 refer to the reclassification in relation to the investee company becoming a public company. However, the investee company was transferred back into Level 3 as it ceased to be a public company in the fourth quarter of 2019. For the year ended December 31, 2020, there was no transfer into or out from Level 3.

• G. Finance and accounting department is in charge of valuation procedures for fair value measurements being categorized within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions and frequently reviewed.

• Finance and accounting department sets up valuation policies, valuation processes and rules for measuring fair value of financial instruments and ensure compliance with the related requirements in IFRS. The related valuation results are reported to management monthly. Management is responsible for managing and reviewing valuation processes.

• H. The following is the qualitative information on significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

	Fair value at		Significant	Range	Relationship
	December 31,	Valuation	unobservable	(weighted	of inputs to
	2020	technique	input	average)	fair value
Non-derivative
equity:
Equity	$ 1,185,252	Net asset	Net asset value	-	The higher the
investment		value method			net asset value,
without					the higher the fair
active					value
market

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	Fair value at		Significant	Range	Relationship
	December 31,	Valuation	unobservable	(weighted	of inputs to
	2019	technique	input	average)	fair value
Non-derivative
equity:
Equity	$ 1,184,898	Net asset	Net asset value	-	The higher the
investment		value method			net asset value,
without					the higher the fair
active					value
market

• I. The Group has carefully assessed the valuation models and assumptions used to measure fair value; therefore, the fair value measurement is reasonable. However, use of different valuation models or assumptions may result in different measurement. The following is the effect on profit or loss or on other comprehensive income from financial assets and liabilities categorized within Level 3 if the inputs used to valuation models have changed:

December 31, 2020

Recognized in Recognized in other profit or loss comprehensive income Favourable Unfavourable Favourable Unfavourable Input Change change change change change Financial assets Equity Net asset ± 1% instrument value $ 11,503 ($ 11,503) $ 350 ($ 350) December 31, 2019 Recognized in Recognized in other profit or loss comprehensive income Favourable Unfavourable Favourable Unfavourable Input Change change change change change Financial assets Equity Net asset ± 1% instrument value $ 11,529 ($ 11,529) $ 320 ($ 320)

13. SUPPLEMENTARY DISCLOSURES

(The transactions with subsidiaries disclosed below had been eliminated when preparing consolidated financial statements. The following disclosures are for reference only.)

• (1) Significant transactions information

• A. Loans to others: Please refer to table 1.

• B. Provision of endorsements and guarantees to others: Please refer to table 2.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.

• D. Aggregate purchases or sales of the same securities reaching $300 million or 20% of

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paid-in capital or more: Please refer to table 4.

• E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: Please refer to table 5.

• F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 6.

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 7.

• I. Derivative financial instruments undertaken during the reporting periods: Please see Notes 6(2)B. and 12(3).

• J. Significant inter-company transactions during the reporting periods: Please refer to table 8.

(2) Information on investee companies

Names, locations and other information of investee companies (excluding investees in Mainland China): Please refer to table 9.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to table 10.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area.

• Any of the following significant transactions with investee companies in the Mainland Area, either directly or indirectly through a third area, and their prices, payment terms, and unrealized gains or losses: Information on significant transactions of the Company and subsidiary and investee company in Mainland China as of and for the year ended December 31, 2020 is provided in Note (1)J.

(4) Major shareholders information

Major shareholders information: Please refer to table 11.

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14. OPERATING SEGMENT INFORMATION

(1) General information

The Group is mainly engaged in the import and export of electronic components. The products include CPU, analog IC, discrete IC, logic IC, DRAM, Flash, optical component, etc. The chief operating decision-maker evaluates performance based on the separate net income of sub-groups.

• (2) Measurement of segment information

The Group’s chief operating decision-maker uses the net income as basis for assessing the performance of the Group’s operating segments.

(3) Reconciliation for segment income (loss)

• A. The net income reported to the chief operating decision-maker is measured in a manner consistent with revenues, costs and expenses in the statement of comprehensive income. As the amounts in the statement provided to the chief operating decision-maker for managing segment are in agreement with the amounts in the statements of segment income, reconciliation is not needed.

• B. The segment information of the reportable segments provided to the chief operating decision-maker for the three months and nine months ended December 31, 2020 and 2019 is as follows:

Year ended December 31, 2020:

Revenue from external customers Revenue from internal customers Total revenue Segment profit Net income	World Peace Industrial Co., Ltd. and its subsidiaries $ 306,630,823 12,643,486 $ 319,274,309 $ 5,696,937 $ 3,312,752	Silicon Application Corp. and its subsidiaries $ 69,505,257 6,221,412 $ 75,726,669 $ 2,046,279 $ 1,079,540	Asian Information Technology Inc. and its subsidiaries $ 72,128,150 1,417,994 $ 73,546,144 $ 1,842,350 $ 1,137,808	Yosun Industrial Corp. and its subsidiaries $ 82,643,523 7,220,382 $ 89,863,905 $ 1,634,155 $ 931,184	Trigold Holdings Limited $ 18,186,863 576,857 $ 18,763,720 $ 555,462 $ 204,290	Others $ 60,791,255 12,963,343 ( $ 73,754,598 ( $ 1,010,193 $ 6,398,643 (	Eliminations $ - 41,043,474) $ 41,043,474) $ 1,162,200 $ 4,863,713)	Total $ 609,885,871 - $ 609,885,871 $ 13,947,576 $ 8,200,504

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Year ended December 31, 2019:

Revenue from external customers Revenue from internal customers Total revenue Segment profit Net income	World Peace Industrial Co., Ltd. and its subsidiaries $ 263,803,916 13,934,066 $ 277,737,982 $ 6,031,661 $ 3,337,651	Silicon Application Corp. and its subsidiaries $ 66,686,583 4,506,594 $ 71,193,177 $ 1,812,656 $ 920,534	Asian Information Technology Inc. and its subsidiaries $ 67,898,982 1,599,977 $ 69,498,959 $ 1,618,266 $ 1,012,977	Yosun Industrial Corp. and its subsidiaries $ 64,230,951 5,941,121 $ 70,172,072 $ 1,561,325 $ 1,034,444	Trigold Holdings Limited $ 15,242,430 2,898,687 $ 18,141,117 $ 404,058 $ 137,181	Others $ 49,738,491 3,809,393 ( $ 53,547,884 ( $ 704,467 $ 6,627,795 (	Eliminations $ - 32,689,838) $ 32,689,838) $ 1,265,329 $ 6,564,623)	Total $ 527,601,353 - $ 527,601,353 $ 13,397,762 $ 6,505,959

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(4) Information on product and service

The Group is mainly engaged in the import and export of electronic components. Revenues consist as follows:

consist as follows:
Core components Analog IC and mixed signal component Discrete, logic IC Memory Optical components Passive component, connector and magnetic component Others		Year ended December 31 2020 2019 $ 202,310,074 $ 156,144,782 93,492,227 113,860,827 80,852,236 74,881,379 126,631,458 103,263,510 59,656,956 41,465,436 33,056,264 27,531,480 13,886,656 10,453,939 $ 609,885,871 $ 527,601,353
		2020 $ 202,310,074 93,492,227 80,852,236 126,631,458 59,656,956 33,056,264 13,886,656 $ 609,885,871

(5) Geographical information

Information about geographic areas for the years ended December 31, 2020 and 2019 were as follows:

follows:
Taiwan Mainland China Others	Year ended December 31 2020 2019 Revenue Non-current assets Revenue Non-current assets $ 86,244,135 $ 16,284,901 $ 79,802,035 $ 18,787,922 479,575,807 3,148,067 398,259,303 2,268,854 44,065,929 468,270 49,540,015 609,150 $ 609,885,871 $ 19,901,238 $ 527,601,353 $ 21,665,926
	2020 Revenue Non-current assets $ 86,244,135 $ 16,284,901 479,575,807 3,148,067 44,065,929 468,270 $ 609,885,871 $ 19,901,238
	Revenue $ 86,244,135 479,575,807 44,065,929 $ 609,885,871	Revenue $ 79,802,035 398,259,303 49,540,015 $ 527,601,353

(6) Major customer information

No single customer contributed more than 10% of the Group’s total consolidated operating revenues for the years ended December 31, 2020 and 2019.

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WPG Holdings Limited and Subsidiaries

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

Loans to others

Year ended December 31, 2020

Creditor Borrower General ledger account Is a related party Maximum outstanding balance during the year ended December 31, 2020 Balance at December 31, 2020 Interest rate Nature of loan (Note 8) Amount of transactions with the borrower Reason for short-term financing Allowance for doubtful accounts Actual amount drawn down No.	Collateral	Limit on loans granted to a single party	Ceiling on total loansgranted	Footnote
	Item Value
1 Apache Korea Corp. WPG Korea Co., Ltd. Other receivables - related parties Y 52,352 $ 52,352 $ - $ 0.00 2 - $ Operations - $ 2 Genuine C&C (IndoChina) Pte Ltd World Peace International (South Asia) Pte Ltd Other receivables - related parties Y 56,960 56,960 56,960 1.47 2 - Operations - 3 GENUINE C&C HOLDING INC. (Seychelles) Peng Yu International Limited Other receivables - related parties Y 113,920 113,920 113,920 2~3.5 2 - Operations - 4 Richpower Electronic Devices Pte., Ltd. Yosun Singapore Pte Ltd. Other receivables - related parties Y 213,600 213,600 209,328 1.47 2 - Operations - 5 World Peace International (South Asia) Pte Ltd WPI International (Hong Kong) Limited Other receivables - related parties Y 1,708,800 1,708,800 - 0.00 2 - Operations - 5 World Peace International (South Asia) Pte Ltd WPG Americas Inc. Other receivables - related parties Y 284,800 284,800 - 0.00 2 - Operations - 6 World Peace International Pte Ltd World Peace International (South Asia) Pte Ltd Other receivables - related parties Y 113,920 113,920 113,920 1.47 2 - Operations - 7 WPG C&C Computers And Peripheral (India) Private Limited World Peace International (India) Pvt., Ltd. Other receivables - related parties Y 81,766 - - 0.00 2 - Operations - 8 WPG C&C Limited WPI International (Hong Kong) Limited Other receivables - related parties Y 227,840 227,840 227,840 1.50 2 - Operations - 9 WPG India Electronics Pvt Ltd World Peace International (India) Pvt., Ltd. Other receivables - related parties Y 38,936 - - 0.00 2 - Operations -	None - None - None - None - None - None - None - None - None - None -	76,278 $ 76,793 129,174 430,778 6,636,008 6,636,008 2,166,810 384,991 259,086 159,924	76,278 $ 76,793 129,174 430,778 6,636,008 6,636,008 2,166,810 384,991 259,086 159,924	Note 1 Note 3 Note 5 Note 4 Note 3 Note 3 Note 3 Note 3 Note 5 Note 3

Table 1, Page 1

No. Creditor Borrower General ledger account Is a related party Maximum outstanding balance during the year ended December 31, 2020 Balance at December 31, 2020 Actual amount drawn down Interest rate Nature of loan (Note 8) Amount of transactions with the borrower Reason for short-term financing Allowance for doubtful accounts	Collateral	Limit on loans granted to a single party	Ceiling on total loansgranted	Footnote
	Item Value
10 WPG South Asia Pte. Ltd. WPG Korea Co., Ltd. Other receivables - related parties Y 569,600 $ 569,600 $ 284,800 $ 3.50 2 - $ Operations - $ 10 WPG South Asia Pte. Ltd. World Peace International (South Asia) Pte Ltd Other receivables - related parties Y 427,200 142,400 - 0.00 2 - Operations - 10 WPG South Asia Pte. Ltd. WPG Americas Inc. Other receivables - related parties Y 284,800 284,800 - 0.00 2 - Operations - 10 WPG South Asia Pte. Ltd. Yosun Singapore Pte Ltd. Other receivables - related parties Y 85,440 85,440 - 0.00 2 - Operations - 11 Yosun Hong Kong Corp. Ltd. Peng Yu International Limited Other receivables - related parties Y 712,000 - - 0.00 2 - Operations - 11 Yosun Hong Kong Corp. Ltd. WPG Electronics (HK) Limited Other receivables - related parties Y 1,424,000 569,600 - 0.00 2 - Operations - 11 Yosun Hong Kong Corp. Ltd. WPG Americas Inc. Other receivables - related parties Y 569,600 - - 0.00 2 - Operations - 11 Yosun Hong Kong Corp. Ltd. WPG China Inc. Other receivables - related parties Y 3,939,300 3,939,300 3,392,175 3.84~5.48 2 - Operations - 11 Yosun Hong Kong Corp. Ltd. Richpower Electronic Devices Co., Limited Other receivables - related parties Y 854,400 854,400 - 0.00 2 - Operations - 12 AECO Technology Co., Ltd. World Peace Industrial Co., Ltd. Other receivables - related parties Y 320,000 85,850 85,850 1.30 2 - Operations - 13 AECO Electronics Co., Ltd. WPI International (Hong Kong) Limited Other receivables - related parties Y 683,520 683,520 683,520 1.5~2.02 2 - Operations - 14 WPG SCM Limited Peng Yu International Limited Other receivables - related parties Y 569,600 - - 0.00 2 - Operations -	None - None - None - None - None - None - None - None - None - None - None - None -	1,355,466 $ 1,355,466 1,355,466 1,355,466 9,142,513 9,142,513 9,142,513 9,142,513 9,142,513 396,618 759,318 1,070,105	1,355,466 $ 1,355,466 1,355,466 1,355,466 9,142,513 9,142,513 9,142,513 9,142,513 9,142,513 396,618 759,318 1,070,105	Note 8 Note 8 Note 8 Note 8 Note 9 Note 9 Note 9 Note 9 Note 9 Note 2 Note 5 Note 9

Table 1, Page 2

Interest rate Nature of loan (Note 8) No. Creditor Borrower General ledger account Is a related party Amount of transactions with the borrower Reason for short-term financing Allowance for doubtful accounts Maximum outstanding balance during the year ended December 31, 2020 Balance at December 31, 2020 Actual amount drawn down	Collateral	Limit on loans granted to a single party	Ceiling on total loansgranted	Footnote
	Item Value
14 WPG SCM Limited WPG Holdings Limited Other receivables - related parties Y 227,840 $ - $ - $ 0.00 2 - $ Operations - $ 14 WPG SCM Limited WPG Americas Inc. Other receivables - related parties Y 569,600 569,600 - 0.00 2 - Operations - 14 WPG SCM Limited WPG Electronics (HK) Limited Other receivables - related parties Y 284,800 284,800 284,800 1.29 2 - Operations - 14 WPG SCM Limited Yosun Singapore Pte Ltd. Other receivables - related parties Y 142,400 142,400 142,400 1.45 2 - Operations - 15 Yosun Industrial Corp. Richpower Electronic Devices Co., Limited Other receivables - related parties Y 1,708,800 1,708,800 569,600 1.70 2 - Operations - 15 Yosun Industrial Corp. Yosun Hong Kong Corp. Ltd. Other receivables - related parties Y 854,400 854,400 - 0.00 2 - Operations - 16 Yosun South China Corp. Ltd. WPG China Inc. Other receivables - related parties Y 65,655 65,655 65,655 2.80 2 - Operations - 16 Yosun South China Corp. Ltd. WPG China (SZ) Inc. Other receivables - related parties Y 122,556 109,425 109,425 2.80 2 - Operations - 17 Yosun Shanghai Corp. Ltd. WPG China Inc. Other receivables - related parties Y 153,195 13,131 13,131 2.80 2 - Operations - 17 Yosun Shanghai Corp. Ltd. WPG China (SZ) Inc. Other receivables - related parties Y 319,521 319,521 319,521 2.80 2 - Operations - 18 WPG Investment Co., Ltd. WPG Holdings Limited Other receivables - related parties Y 125,000 - - 0.00 2 - Operations - 19 WPG C&C Shanghai Co., Ltd. Trigolduo (Shanghai) Industrial Development Ltd. Other receivables - related parties Y 40,969 40,969 36,592 3.95~4.6 2 - Operations -	None - None - None - None - None - None - None - None - None - None - None - None -	1,070,105 $ 1,070,105 1,070,105 1,070,105 3,265,980 3,265,980 210,701 210,701 370,578 370,578 837,838 146,530	1,070,105 $ 1,070,105 1,070,105 1,070,105 3,265,980 3,265,980 210,701 210,701 370,578 370,578 837,838 366,325	Note 8 Note 8 Note 8 Note 8 Note 2 Note 2 Note 5 Note 5 Note 5 Note 5 Note 2 Note 5

Table 1, Page 3

Amount of transactions with the borrower Reason for short-term financing Allowance for doubtful accounts Maximum outstanding balance during the year ended December 31, 2020 Balance at December 31, 2020 Actual amount drawn down Interest rate Nature of loan (Note 8) No. Creditor Borrower General ledger account Is a related party	Collateral	Limit on loans granted to a single party	Ceiling on total loansgranted	Footnote
	Item Value
19 WPG C&C Shanghai Co., Ltd. Trigold Tongle (Shanghai) Industrial Development Ltd. Other receivables - related parties Y 13,131 $ 13,131 $ 7,660 $ 4.60 2 - $ Operations - $ 20 WPI International (Hong Kong) Limited WPG Korea Co., Ltd. Other receivables - related parties Y 569,600 284,800 213,600 3.50 2 - Operations - 20 WPI International (Hong Kong) Limited WPG Electronics (HK) Limited Other receivables - related parties Y 1,139,200 569,600 - 0.00 2 - Operations - 20 WPI International (Hong Kong) Limited Peng Yu International Limited Other receivables - related parties Y 398,720 - - 0.00 2 - Operations - 21 World Peace Industrial Co., Ltd. Longview Technology Inc. Other receivables - related parties Y 879,600 88,480 44,100 1.55 2 - Operations - 21 World Peace Industrial Co., Ltd. Long-Think International Co., Ltd. Other receivables - related parties Y 42,720 8,544 - 0.00 2 - Operations - 21 World Peace Industrial Co., Ltd. WPI International (Hong Kong) Limited Other receivables - related parties Y 2,705,600 2,705,600 - 0.00 2 - Operations - 22 Everwiner Enterprise Co., Ltd. Pernas Electronics Co., Ltd. Other receivables - related parties Y 200,000 200,000 200,000 1.37 2 - Operations - 23 Silicon Application corp. WPG Electronics (HK) Limited Other receivables - related parties Y 1,993,600 1,993,600 1,993,600 2~3.2 2 - Operations - 24 Silicon Application (BVI) Corporation Silicon Application corp. Other receivables - related parties Y 1,139,200 1,139,200 1,139,200 1.50 2 - Operations - 24 Silicon Application (BVI) Corporation Peng Yu International Limited Other receivables - related parties Y 170,880 170,880 170,880 2.00 2 - Operations - 25 Silicon Application Company Limited Silicon Application corp. Other receivables - related parties Y 655,040 655,040 655,040 1.50 2 - Operations -	None - None - None - None - None - None - None - None - None - None - None - None -	146,530 $ 19,709,527 19,709,527 19,709,527 7,481,230 7,481,230 7,481,230 251,108 2,915,223 1,237,136 3,092,841 696,752	366,325 $ 19,709,527 19,709,527 19,709,527 9,974,973 9,974,973 9,974,973 251,108 2,915,223 3,092,841 3,092,841 1,741,880	Note 5 Note 5 Note 5 Note 5 Note 6 Note 6 Note 6 Note 2 Note 2 Note 5 Note 5 Note 5

Table 1, Page 4

Nature of loan (Note 8) Amount of transactions with the borrower Reason for short-term financing Allowance for doubtful accounts No. Creditor Borrower General ledger account Is a related party Maximum outstanding balance during the year ended December 31, 2020 Balance at December 31, 2020 Actual amount drawn down Interest rate	Collateral	Limit on loans granted to a single party	Ceiling on total loansgranted	Footnote
	Item Value
25 Silicon Application Company Limited Yosun Hong Kong Corp. Ltd. Other receivables - related parties Y 569,600 $ 569,600 $ 569,600 $ 1.55~3.09 2 - $ Operations - $ 25 Silicon Application Company Limited WPG China Inc. Other receivables - related parties Y 284,800 - - 0.00 2 - Operations - 25 Silicon Application Company Limited Peng Yu International Limited Other receivables - related parties Y 170,880 - - 0.00 2 - Operations - 25 Silicon Application Company Limited WPG Electronics (HK) Limited Other receivables - related parties Y 455,680 455,680 455,680 2~3.2 2 - Operations - 26 Sertek Limited Yosun Hong Kong Corp. Ltd. Other receivables - related parties Y 415,808 - - 0.00 2 - Operations - 26 Sertek Limited Richpower Electronic Devices Co., Limited Other receivables - related parties Y 71,200 71,200 71,200 1.25 2 - Operations - 27 Sertek Incorporated Richpower Electronic Devices Co., Ltd Other receivables - related parties Y 512,640 512,640 284,800 1.35 2 - Operations - 28 Frontek Technology Corporation Apache Communication Inc. Other receivables - related parties Y 284,800 - - 0.00 2 - Operations - 29 Genuine C&C Inc. Hoban Inc. Other receivables - related parties Y 50,000 50,000 - 0.00 2 - Operations - 29 Genuine C&C Inc. Peng Yu International Limited Other receivables - related parties Y 300,000 - - 0.00 2 - Operations - 30 Richpower Electronic Devices Co., Limited Silicon Application corp. Other receivables - related parties Y 569,600 569,600 569,600 1.55~3.09 2 - Operations - 30 Richpower Electronic Devices Co., Limited Yosun Hong Kong Corp. Ltd. Other receivables - related parties Y 569,600 - - 0.00 2 - Operations -	None - None - None - None - None - None - None - None - None - None - None - None -	1,741,880 $ 1,741,880 1,741,880 1,741,880 75,794 75,794 571,487 517,148 451,811 451,811 927,121 2,317,803	1,741,880 $ 1,741,880 1,741,880 1,741,880 75,794 75,794 571,487 827,436 451,811 451,811 2,317,803 2,317,803	Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 2 Note 7 Note 10 Note 10 Note 5 Note 5

Table 1, Page 5

No. Creditor Borrower General ledger account Is a related party Maximum outstanding balance during the year ended December 31, 2020 Balance at December 31, 2020 Actual amount drawn down Interest rate Nature of loan (Note 8) Amount of transactions with the borrower Reason for short-term financing Allowance for doubtful accounts	Collateral	Limit on loans granted to a single party	Ceiling on total loansgranted	Footnote
	Item Value
31 Long-Think International (Hong Kong) Limited WPI International (Hong Kong) Limited Other receivables - related parties Y 427,200 $ 398,720 $ 398,720 $ 1.3~2.02 2 - $ Operations - $ 32 Long-Think International Co., Ltd. World Peace Industrial Co., Ltd. Other receivables - related parties Y 18,000 17,500 17,500 1.30 2 - Operations - 33 Asian Information Technology Inc. Frontek Technology Corporation Other receivables - related parties Y 500,000 500,000 500,000 1.19 2 - Operations - 34 Peng Yu (Shanghai) Digital Technology Co., Ltd. Trigolduo (Shanghai) Industrial Development Ltd. Other receivables - related parties Y 35,016 - - 0.00 2 - Operations - 34 Peng Yu (Shanghai) Digital Technology Co., Ltd. WPG C&C Shanghai Co., Ltd. Other receivables - related parties Y 161,949 151,007 151,007 3.95~4.6 2 - Operations - 35 Trigolduo (Shanghai) Industrial Development Ltd. Trigold Tongle (Shanghai) Industrial Development Ltd. Other receivables - related parties Y 6,128 - - 0.00 2 - Operations -	None - None - None - None - None - None -	523,752 $ 18,572 1,425,673 131,661 329,152 -	523,752 $ 18,572 2,281,077 329,152 329,152 -	Note 5 Note 2 Note 7 Note 5 Note 5 Note 10

Note 1:Ceiling on total loans to others should not exceed the creditor's net assets. For short-term financing, ceiling on loans to a single party should not exceed the creditor's net assets

Note 2: Accumulated financing activities to any company or person should not be in excess of 40% of creditor’s net assets. Limit on loans to a single company is as follows

• (1) For business transaction to the creditor, the individual limit should not exceed the amount of business transactions; the amount of business transactions means the higher between sales and purchases.

• (2) For short-term financing, financing activities to a single company should not be in excess of 40% of creditor’s net assts.

• Note 3: (1) For those borrowers which are not 100% held investee company, the individual limit amount and the accumulated financing activities to those borrowers should not be in excess of 40% of the creditor’s net assets.

• (2) For those borrowers which are 100% held investee company, the individual limit amount and the accumulated financing activities to those borrowers should not be in excess of 200% of the creditor’s net assets. (3) The total limit of (1) and (2) should not exceed 200% of the creditor’s net assets.

• Note 4: Accumulated financing activities to any company or person should not be in excess of 200% of creditor’s net assets. Limit on loans to a single company is as follows

• (1) For business transaction to the creditor, the individual limit should not exceed the amount of business transactions; the amount of business transactions means the higher between sales and purchases.

• (2) For short-term financing, the financing activities to an overseas company which is 100% directly or indirectly held by ultimate parent company should not be in excess of 200% of creditor’s net assets. For borrower not fulfilling said criteria, the limit should not exceed 40% of the creditor’s net assets.

• Note 5: Accumulated financing activities to any company or person should not be in excess of 100% of creditor’s net assets. Limit on loans to a single company is as follows

• (1) For business transaction to the creditor, the individual limit should not exceed the amount of business transactions; the amount of business transactions means the higher between sales and purchases.

• (2) For short-term financing, the financing activities to an overseas company or ultimate parent company which is 100% directly or indirectly held by ultimate parent company should not be in excess of 100% of creditor’s net assets. For borrower not fulfilling said criteria, the limit should not exceed 40% of the creditor’s net assets.

• Note 6: Accumulated financing activities to any company or person should not be in excess of 40% of creditor’s net assets. Limit on loans to a single company is as follows

• (1) For business transaction to the creditor, the individual limit should not exceed the amount of business transactions; the amount of business transactions means the higher between sales and purchases.

• (2) For short-term financing, the financing activities to a single company should not be in excess of 30% of creditor’s assets.

• Note 7: Accumulated financing activities to any company or person should not be in excess of 40% of creditor’s net assets. Limit on loans to a single company is as follows

• (1) For business transaction to the creditor, the individual limit should not exceed the amount of business transactions; the amount of business transactions means the higher between sales and purchases.

• (2) For short-term financing, the financing activities to a single company should not be in excess of 25% of creditor’s net assts.

• Note 8: (1) The financing activities to an overseas company which is 100% directly or indirectly held by ultimate parent company should not be in excess of 200% of creditor's net assets. Ceilings on accumulated short-term financing should not exceed 200% of the creditor's net assets.

• (2) The individual limit amount should not exceed 40% of the creditor's net assets and the accumulated financing activities to those borrowers should not be in excess of 40% of the creditor's net assets.

• Note 9: Accumulated financing activities to any company or person should not be in excess of 100% of creditor’s net assets. Limit on loans to a single company is as follows

Table 1, Page 6

• (1) For business transaction to the creditor, the individual limit should not exceed the amount of business transactions; the amount of business transactions means the higher between sales and purchases.

• (2) For short-term financing, the financing activities to an overseas company or ultimate parent company which is 100% directly or indirectly held by ultimate parent company should not be in excess of 200% of creditor’s net assets. For borrower not fulfilling said criteria, the limit should not exceed 40% of the creditor's net assets.

• Note 10: Accumulated financing activities to any company or person should not be in excess of 40% of creditor’s net assets. Limit on loans to a single company is as follows

• (1) For business transaction to the creditor, ceiling on the individual loans from others should not exceed 40% of the creditor's net assets, and the individual limit should not exceed the amount of business transactions within one year; the amount of business transactions means the higher between sales and purchases.

• (2) For short-term financing, financing activities to a single company should not be in excess of 40% of creditor’s net assts.

• (3) Ceiling on total loans granted between foreign companies whose voting shares are 100% held by the Company directly or indirectly, or on loans granted to the Company by such foreign companies was excluded in the aforementioned limits. Note 11: The column of ‘Nature of loan’ shall fill in 1. ‘Business transaction or 2. ‘Short-term financing’.

Table 1, Page 7

WPG Holdings Limited and Subsidiaries

Provision of endorsements and guarantees to others

Year ended December 31, 2020

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

Number	Endorser/ guarantor	Partybeingendorsed/guaranteed	Limit on endorsements/ guarantees provided for a singleparty	Maximum outstanding endorsement/ guarantee amount as of December 31, 2020	Outstanding endorsement/ guarantee amount at December 31, 2020	Actual amount drawn down	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China Footnote
		Companyname Relationship with the endorser/ guarantor
0 1 2 2 2 3 3 3 3 4 4 4 4 4	WPG Holdings Limited World Peace International (South Asia) Pte Ltd World Peace International Pte Ltd World Peace International Pte Ltd World Peace International Pte Ltd Yosun Industrial Corp. Yosun Industrial Corp. Yosun Industrial Corp. Yosun Industrial Corp. World Peace Industrial Co., Ltd. World Peace Industrial Co., Ltd. World Peace Industrial Co., Ltd. World Peace Industrial Co., Ltd. World Peace Industrial Co., Ltd.	World Peace Industrial Co., Ltd. Note 1 WPG C&C Computers And Peripheral (India) Private Limited Note 1 WPG Americas Inc. Note 3 WPG C&C Computers And Peripheral (India) Private Ltd. Note 1 World Peace International (South Asia) Pte Ltd Note 1 Yosun Singapore Pte Ltd. Note 1 Yosun Hong Kong Corp. Ltd. Note 1 Sertek Incorporated Note 1 Richpower Electronic Devices Co., Limited Note 1 WPI International (Hong Kong) Limited Note 1 Vitec WPG Limited Note 3 World Peace International (South Asia) Pte Ltd Note 1 WPG Electronics (HK) Limited Note 3 WPG Korea Co., Ltd. Note 3	32,734,962 $ 6,708,992 7,321,310 7,321,310 7,321,310 8,164,951 8,164,951 8,164,951 8,164,951 12,468,716 12,468,716 12,468,716 12,468,716 12,468,716	153,510 $ 71,200 170,880 125,312 284,800 1,176,224 398,720 2,278,400 1,200,000 1,876,112 64,080 806,560 284,800 60,000	89,758 $ 71,200 156,640 - 284,800 1,053,760 398,720 2,278,400 600,000 1,648,272 64,080 806,560 284,800 60,000	89,758 $ 20,726 16,431 - - 427,979 132,206 837,683 540,033 885,041 64,080 604,136 149,719 60,000	89,758 $ - - - - - - - - - - - - -	0.14 2.12 4.28 0.00 7.78 12.91 4.88 27.90 7.35 6.61 0.26 3.23 1.14 0.24	32,734,962 $ 6,708,992 7,321,310 7,321,310 7,321,310 16,329,902 16,329,902 16,329,902 16,329,902 19,949,946 19,949,946 19,949,946 19,949,946 19,949,946	Y N N N N N N N N N N N N N	N N N N N N N N N N N N N N	N Note 4 and 5 N Note 7 N Note 7 N Note 7 N Note 7 N Note 9 N Note 9 N Note 9 N Note 9 N Note 6 N Note 6 N Note 6 N Note 6 N Note 6

Table 2, Page 1

Number	Endorser/ guarantor	Partybeingendorsed/guaranteed	Limit on endorsements/ guarantees provided for a singleparty	Maximum outstanding endorsement/ guarantee amount as of December 31, 2020	Outstanding endorsement/ guarantee amount at December 31, 2020	Actual amount drawn down	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China Footnote
		Companyname Relationship with the endorser/ guarantor
5 6 7 8 8 8 9 9 9	Apache Communication Inc. Frontek Technology Corporation Pernas Electronics Co., Ltd. Asian Information Technology Inc. Asian Information Technology Inc. Asian Information Technology Inc. Trigold Holdings Limited Trigold Holdings Limited Trigold Holdings Limited	Asian Information Technology Inc. Note 2 Asian Information Technology Inc. Note 2 Silicon Application corp. Note 2 WPG China Inc. Note 3 Frontek Technology Corporation Note 1 Apache Communication Inc. Note 1 Peng Yu (Shanghai) Digital Technology Co., Ltd. Note 1 Peng Yu International Limited Note 1 WPG C&C Shanghai Co., Ltd. Note 1	620,013 $ 827,436 607,240 2,281,077 2,281,077 2,281,077 638,985 638,985 638,985	444,800 $ 644,800 100,000 14,240 1,627,200 227,840 43,770 199,360 262,620	444,800 $ 604,800 100,000 - 820,720 227,840 - 56,960 131,310	160,000 $ 590,978 267 - 125,634 - - 56,960 -	- - - - - - - - -	28.70 29.24 8.23 0.00 14.39 4.00 0.00 4.46 10.27	775,016 $ 1,034,295 607,240 2,851,346 2,851,346 2,851,346 638,985 638,985 638,985	N N N N N N N N N	N N N N N N N N N	N Note 11 N Note 11 N Note 12 Y Note 8 N Note 8 N Note 8 Y Note 10 N Note 10 Y Note 10

Note 1: The company and its subsidiary hold more than 50% of the investee company.

Note 2: The parent company directly owns more than 50% of the company.

Note 3: An affiliate.

• Note 4: The guarantee amount should not exceed 50% of guarantor’s net assets; the limit to a single company should not exceed 50% of the Company’s stockholder’s equity. For business transaction with the Company, the guarantee amount should not exceed the amount of business transaction, which is the higher between sales and purchases. The limit on the Company and its subsidiaries’ total loan to other companies is less than 60% of the Company’s net assets; limited to a single company should not exceed 50% of the Company’s net assets. The guarantee amount to a subsidiary which is 90%~100% directly or indirectly held by the Company should not exceed 10% of the Company’s net assets, which is based on the latest audited or reviewed financial statements.

• Note 5: There are 8,999 thousand shares of WPG Investment Co., Ltd. which have been pledged for purchases for World Peace Industrial Co., Ltd. The book value of those pledged investments is $89,758.

• Note 6: The cumulative guarantee amount to others should not be in excess of 80% of guarantor’s net assets. The guarantee amount to a single company should not be in excess of 50% of guarantor’s net assets. For business transaction with the guarantor, the guarantee amount should not exceed the amount of business transaction, which is the higher between sales and purchases. The net asset value is based on the latest audited or reviewed financial statements.

• Note 7: The cumulative guarantee amount to others should not be in excess of 200% of the Company’s net assets. The guarantee amount to a single company should not be in excess of 200% of Company’s net assets. For business transaction with the Company, the guarantee amount should not exceed the amount of business transaction, which is the higher between sales and purchases. The guarantee amount to a subsidiary which is 90%~100% directly or indirectly held by the Company should not exceed 10% of the Company’s net assets. Note 8: The guarantee amount should not exceed 50% of guarantor’s net assets; the limit to a single company should not exceed 40% of the Company’s net assets. For business transaction with the Company, the guarantee amount should not exceed the amount of business transaction, which is the higher between sales and purchases. Net assets is based on the latest audited or reviewed financial statements. Ceiling on total endorsements/guarantees granted by the Company and subsidiaries shall be less than 50% of the Company’s net assets. Ceiling on total endorsements/guarantees granted by the Company and subsidiaries to a single party is 50% of the Company’s net assets. The guarantee amount to a subsidiary which is 90%~100% directly or indirectly held by the Company should not

• exceed 10% of the Company’s net assets. The net assets referred to above are based on the latest audited or reviewed financial statements.

• Note 9: The cumulative guarantee amount to others should not be in excess of 200% of guarantor and its subsidiaries’ total net assets. The guarantee amount to a single company should not be in excess of 100% of guarantor and its subsidiaries’ total net assets.

• For business transaction with the Company, the guarantee amount should not exceed the amount of business transaction, which is the higher between sales and purchases. The Company’s guarantee amount to a subsidiary which is 90%~100% directly or indirectly held by the ultimate parent company should not exceed 10% of the ultimate parent company’s net assets. The net asset value is based on the latest audited or reviewed financial statements.

• Note 10: The cumulative guarantee amount to others should not be in excess of 50% of the Company’s net assets. The guarantee amount to a single company should not be in excess of 50% of Company’s net assets. For business transaction with the Company, the guarantee amount should not exceed the amount of business transaction, which is the higher between sales and purchases. The Company’s and its subsidiaries’ cumulative guarantee amount to others should not be in excess 50% (not including 50%) of the Company’s net

• assets. The guarantee amount to a single company should not be in excess of 50% (not including 50%) of the Company’s net assets. The guarantee amount to a subsidiary which is 90%~100% directly or indirectly held by the Company should not exceed 10% of the Company’s net assets. The guarantee amount to a subsidiary which is 100%directly or indirectly held by the Company should not exceed 50% (not including 50%) of the Company’s net assets. The net assets value is based on the latest audit or reviewed financial statements.

• Note 11: The guarantee amount should not exceed 50% of guarantor’s net assets; the limit to a single company should not exceed 40% of the Company’s net assets. For business transaction with the Company, the guarantee amount should not exceed the amount of business transaction, which is the higher between sales and purchases. Net assets is based on the latest audited or reviewed financial statements. The guarantee amount to a subsidiary which is 90%~100% directly or indirectly held by the Company should not exceed 10% of the Company’s net assets. The net assets referred to above are based on the latest audited or reviewed financial statements.

• Note 12: The cumulative guarantee amount to others should not be in excess of 50% of the Company’s net assets; the limit to a single company should not exceed 50% of the Company’s net assets. For business transaction with the Company, the guarantee amount should not

Table 2, Page 2

exceed the amount of business transaction, which is the higher between sales and purchases.Ceiling on total endorsements/guarantees granted by the Company and subsidiaries shall be less than 50% of the Company’s net assets. Ceiling on total endorsements/guarantees granted by the Company and subsidiaries to a single party is 50% of the Company’s net assets. The guarantee amount to a subsidiary which is 90%~100% directly or indirectly held by the Company should not exceed 10% of the Company’s net assets. The net assets referred to above are based on the latest audited or reviewed financial statements.

Table 2, Page 3

WPG Holdings Limited and Subsidiaries

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

Year ended December 31, 2020

Securities held by Table 3	Marketable securities	Relationship with the securities issuer	General ledger account		As of Decem	ber31,2020	(Except as oth Expressed in th	Footnote erwise indicated) ousands of NTD
				Number of shares (in thousands)	Book value	Ownership (%)	Fair value(Note 1)
WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited Silicon Application corp. World Peace Industrial Co., Ltd. AECO Technology Co., Ltd. Yosun Industrial Corp. Genuine C&C Inc. Richpower Electronic Devices Co., Ltd WPG Investment Co., Ltd. WPG Investment Co., Ltd.	Restar Holdings Corporation None Tyche Partners L.P. - Funds None CDIB CME Fund Ltd., etc. - Equity securities None T3EX Global Holdings Corp. - Equity securities None WT Microelectronics Co., Ltd.-Preference shares The Group's investment accounted for using equity method Kingmax Technology Inc., etc. - Equity securities None Silicon Line GmbH, Munich…etc. - Equity securities None Hua-Jie (Taiwan) Corp. - Equity securities None Fortend Taiwan Scientific Corp., etc. - Equity securities None Systemweb Technology - Equity securities None Promaster Technology Co., Ltd., etc. - Equity securities None Dimerco Express Corporation etc. - Equity securities None Nichidenbo Corporation etc. - Equity securities None		Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through other comprehensive income - non- current Financial assets at fair value through other comprehensive income - non- current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - current, etc. Financial assets at fair value through other comprehensive income - non- current	230 - - 10,112 24,284 - - 668 - 700 - - -	141,142 $ 331,730 138,043 415,099 1,178,982 12,267 24,068 6,684 24,582 10,046 34,829 102,037 237,313	0.76 - - 8.63 17.99 - - 3.32 - 9.52 - - -	141,142 $ 331,730 138,043 415,099 1,178,982 12,267 24,068 6,684 24,582 10,046 34,829 102,037 237,313	Note 2 Note 3 Note 4

Table 3, Page 1

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of Decem	ber31,2020		Footnote
				Number of shares (in thousands)	Book value	Ownership (%)	Fair value(Note 1)
Silicon Application (BVI) Corporation Asian Information Technology Inc. Win-Win Systems Ltd. WPG South Asia Pte. Ltd. WPG China Inc.	ACTIONTEC ELECTRONICS, INC.…etc. - Equity securities Zill Tek Technology Corp. etc. - Equity securities Silicon Electronics Company(s) Pte. Ltd. - Equity securities ViMOS Technologies GmBH - Equity securities CECI Technology Co. Ltd. etc. - Equity securities	None None None None None	Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - current, etc. Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current	- - 180 20 -	6,213 $ 23,095 - 629 574,738	- - - 9.00 -	6,213 $ 23,095 - 629 574,740

Note 1: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortized cost deducted by accumulated impairment for the marketable securities not measured at fair value.

• Note 2: The original investee company, Vitec Holdings Co., Ltd., was delisted on March 27, 2019. Vitec Holdings Co., Ltd merged with UKC Holdings whereby a new company, Restar Holdings Corporation, was established. The effective date for this merger was April 1, 2019, and the name of the held marketable securities was changed.

• Note 3: On September 18, 2020, the Board of Directors of the Group resolved to subscribe WT’s series A preference shares in the amount of 24,283,867 shares with a par value of NT$50 per share, with total consideration of $1,214,193, based

• on the shareholding ratio at the effective date of the capital increase in accordance with the application for shares. As of October 15, 2020 (effective date of the capital increase), the Group’s shareholding ratio in WT is 17.99% of total

• outstanding preference shares after subscribing WT’s series A preference shares.

• Note 4: There are 566 thousand shares of Kingmax Technology Inc. which have been pledged for purchases as of December 31, 2020.

Table 3, Page 2

WPG Holdings Limited and Subsidiaries

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital

Year ended December 31, 2020

Table 4 Investor	Marketable securities	General ledger account	Counterparty	Relationship with the counterparty	Balance as at January1,2020	Balance as at January1,2020	Addition	Addition		Disposal	Disposal		Expressed in thousands of NTD (Except as otherwise indicated) Balance as at December 31,2020	Expressed in thousands of NTD (Except as otherwise indicated) Balance as at December 31,2020
					No. of shares (in thousands)	Amount	No. of shares (in thousands)	Amount	No. of shares (in thousands)	Selling price	Bookvalue	Gain (loss) on disposal	No. of shares (in thousands)	Amount
WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Investment Co., Ltd. Asian Information Technology Inc.	WT Microelectronics Co., Ltd. - common shares WT Microelectronics Co., Ltd.-Preference shares T3EX GlobalHoldings Corp. T3EX GlobalHoldings Corp. Apache Communication Inc.	Note 1 Note 2 Note 2 Note 2 Note 1	Stock exchange market WT Microelectronics Co., Ltd Stock exchange market Stock exchange market Apache Communication Inc.	None None None None Same ultimate parent company	- - - - 107,000	- $ - - - 180,313	177,110 24,284 10,112 1,735 47,300 (Note 3)	8,111,638 $ 1,214,193 323,585 49,703 300,000	- - - - -	- $ - - - -	- $ - - - -	- $ - - - -	177,110 24,284 10,112 1,735 154,300	8,111,638 $ 1,214,193 323,585 49,703 480,313

Note 1: It is recorded as investments accounted for using the equity method. Note 2: It is recorded as financial assets at fair value through other comprehensive income-non-current. Note 3: It included stock dividends distributed by Apache Communication Inc. in the amount of 17,300 thousand shares.

Table 4, Page 1

Expressed in thousands of NTD (Except as otherwise indicated)

WPG Holdings Limited and Subsidiaries

Acquisition of real estate reaching $300 million or 20% of paid-in capital or more

Year ended December 31, 2020

Table 5

If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:

Real estate acquired by	Realestateacquired	Date of the event	Transaction amount	Status of payment (Note2)	Counterparty	Relationship with the counterparty	Original owner who sold the real estate to the counterparty	Relationship between the original owner and the acquirer	Date of the original transaction	Amount	Basis or reference used in setting the price	Reason for acquisition of real estate and status of the real estate	Other commitments
The Company The Company The Company	Office building A in Taipei City Nangang Dist. Jingmao section No. 70, No. 70-1 Taipei City Nangang Dist. Jingmao section No. 70, No. 70-1 Taipei City Nangang Dist. Jingmao section No. 70, No. 70-1	2016.12 (Note 1) 2016.12 (Note 1) 2016.12 (Note 1)	4,533,954 $ 1,063,114 843,765	4,533,954 $ 1,063,114 843,765	Ji Tai Development Co., Ltd. Lee Wang	Non-related party Non-related party Non-related party	- - -	- - -	- - -	- $ - -	It was appraised by Honda real estate appraising firm and China real estate appraising firm It was appraised by Honda real estate appraising firm and China real estate appraising firm It was appraised by Honda real estate appraising firm and China real estate appraising firm	Operation needs Operation needs Operation needs	None None None

Note 1: It was the date of contract. Note 2: For the years ended December 31, 2017, 2018, 2019 and 2020 the total amount were $885,615 and $241,531, $241,531, $5,072,156, respectively.

Table 5, Page 1

Table 6

WPG Holdings Limited and Subsidiaries

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more Year ended December 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
WPG Holdings Limited " " " World Peace Industrial Co., Ltd. " " " " " " Genuine C&C (IndoChina) Pte Ltd World Peace International (South Asia) Pte Ltd. " " " " "	World Peace Industrial Co., Ltd. Silicon Application corp. Asian Information Technology Inc. Yosun Industrial Corp. WPI International (Hong Kong) Limited WPG Electronics (HK) Limited WPG China (SZ) Inc. WPG China Inc. WPG SCM Limited WPG Korea Co., Ltd. Genuine C&C Inc. WPG PT Electrindo Jaya World Peace Industrial Co., Ltd. WPG C&C (Malaysia) Sdn. Bhd WPG C&C Computers And Peripheral (India) Private Limited WPG SCM Limited WPG PT Electrindo Jaya WPG C&C (Thailand) Co., Ltd.	Parent company " " " Same ultimate parent company " " " " " " Investee accounted for using equity method Same ultimate parent company " " " An investment which accounted associates using equity method Same ultimate parent company	Sales " " " " " " " " " " " " " " " " "	553,738) ($ 135,140) ( 133,239) ( 174,937) ( 5,177,800) ( 823,347) ( 556,416) ( 359,827) ( 643,205) ( 943,504) ( 152,993) ( 182,119) ( 306,848) ( 212,708) ( 735,496) ( 2,972,762) ( 360,035) ( 141,205) (	54.12) ( 13.21) ( 13.02) ( 17.10) ( 3.94) ( 0.63) ( 0.42) ( 0.27) ( 0.49) ( 0.72) ( 0.12) ( 81.24) ( 1.37) ( 0.95) ( 3.28) ( 13.25) ( 1.61) ( 0.63) (	Note 5 " " " Note 3 " " " " " " " " " " " " "	Note 5 " " " Note 3 " " " " " " " " " " " " "	Note 5 " " " Note 3 " " " " " " " " " " " " "	57,015 $ 17,218 9,392 34,261 821,892 272,548 52,413 67,838 301 - 33,510 53,130 26,176 759 87,758 830,876 80,333 22,779	46.29 13.98 7.63 27.82 3.87 1.28 0.25 0.32 0.00 0.00 0.16 91.45 0.72 0.02 2.43 23.00 2.22 0.63

Table 6, Page 1

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
WPI International (Hong Kong) Limited " " " " " " " Longview Technology Inc. Silicon Application corp. " " " Pernas Electronics Co., Ltd. " Everwiner Enterprise Co., Ltd. " Asian Information Technology Inc. " "	World Peace Industrial Co., Ltd. World Peace International (South Asia) Pte Ltd. WPG China (SZ) Inc. WPG China Inc. WPG SCM Limited WPG Korea Co., Ltd. Vitec WPG Limited Peng Yu International Limited World Peace Industrial Co., Ltd. Pernas Electronics Co., Ltd. WPG Electronics (HK) Limited WPG China (SZ) Inc. WPG China Inc. Silicon Application corp. Everwiner Enterprise Co., Ltd. Silicon Application corp. Pernas Electronics Co., Ltd. World Peace International (South Asia) Pte Ltd. Frontek Technology Corporation Apache Communication Inc.	Same ultimate parent company " " " " " An investee of the Group which was accounted for using equity method Same ultimate parent company " " " " " " " " " " " "	Sales " " " " " " " " " " " " " " " " " " "	8,446,686) ($ 1,283,488) ( 1,529,103) ( 1,403,672) ( 978,321) ( 2,071,930) ( 134,186) ( 140,373) ( 197,757) ( 468,345) ( 4,421,725) ( 1,223,630) ( 234,857) ( 721,566) ( 422,545) ( 426,734) ( 1,644,611) ( 118,770) ( 4,312,185) ( 1,151,427) (	4.70) ( 0.71) ( 0.85) ( 0.78) ( 0.54) ( 1.15) ( 0.07) ( 0.08) ( 72.30) ( 0.67) ( 6.34) ( 1.76) ( 0.34) ( 13.85) ( 8.11) ( 9.52) ( 36.69) ( 0.34) ( 12.24) ( 3.27) (	Note 3 " " " " " " " " 30 days after monthly billings 90 days after monthly billings " " 30 days after monthly billings Note 2 30 days after monthly billings Note 2 " " "	Note 3 " " " " " " " " Note 4 " " " " " " " Note 2 " "	Note 3 " " " " " " " " Note 4 " " " " " " " Note 2 " "	1,510,530 $ 64,715 341,212 472,888 93,630 1,721,495 10,445 31,142 - 68,178 1,333,999 318,767 71,393 101,684 49,523 50,531 326,760 17,355 1,380,977 246,080	4.47 0.19 1.01 1.40 0.28 5.09 0.03 0.09 0.00 0.41 8.08 1.93 0.43 8.66 4.22 5.57 36.04 0.24 18.70 3.33

Table 6, Page 2

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Asian Information Technology Inc. " Henshen Electric Trading Co.,Ltd. " Frontek Technology Corporation " " " Apache Communication Inc. " WPG Electronics (HK) Limited " " " WPG China (SZ) Inc. WPG China Inc. WPG Americas Inc. WPG South Asia Pte. Ltd. Yosun Industrial Corp. " " " " Yosun Hong Kong Corp. Ltd. "	WPG Electronics (HK) Limited WPG China (SZ) Inc. Asian Information Technology Inc. Frontek Technology Corporation Asian Information Technology Inc. Gather Technology Incorporation Limited WPG Electronics (HK) Limited WPG China Inc. Asian Information Technology Inc. Frontek Technology Corporation World Peace Industrial Co., Ltd. WPI International (Hong Kong) Limited Silicon Application corp. Peng Yu International Limited WPG China Inc. WPG China (SZ) Inc. World Peace Industrial Co., Ltd. World Peace International (South Asia) Pte Ltd. WPG China (SZ) Inc. WPG China Inc. Yosun Hong Kong Corp. Ltd. Richpower Electronic Devices Co., Ltd Richpower Electronic Devices Co., Limited WPG China (SZ) Inc. WPG China Inc.	Same ultimate parent company " " " " " " " " " " " " " " " " " " " " " " " "	Sales " " " " " " " " " " " " " " " " " " " " " " " "	105,618) ($ 232,221) ( 124,002) ( 351,102) ( 3,350,636) ( 100,113) ( 522,069) ( 164,238) ( 630,026) ( 117,997) ( 5,751,389) ( 3,753,786) ( 138,853) ( 3,200,033) ( 1,595,429) ( 479,009) ( 846,448) ( 382,603) ( 556,740) ( 562,908) ( 4,373,879) ( 263,877) ( 166,749) ( 744,826) ( 2,394,984) (	0.30) ( 0.66) ( 11.53) ( 32.66) ( 13.53) ( 0.40) ( 2.11) ( 0.66) ( 2.84) ( 0.53) ( 28.08) ( 18.32) ( 0.68) ( 15.62) ( 15.49) ( 2.44) ( 6.14) ( 23.75) ( 1.95) ( 1.97) ( 15.29) ( 0.92) ( 0.58) ( 2.19) ( 7.06) (	Note 2 " " " " " " " " " Note 3 and 5 " " " Note 6 Note 3 " Note 3 and 5 Note 6 " Note 3 " " Note 6 "	Note 2 " " " " " " " " " Note 3 and 5 " " " Note 6 Note 4 Note 3 Note 3 and 5 Note 6 " Note 3 " " Note 6 "	Note 2 " " " " " " " " " Note 3 and 5 " " " Note 6 Note 4 Note 3 Note 3 and 5 Note 6 " Note 3 " " Note 6 "	32,605 $ 55,405 173 - 236,978 80,688 238,316 30,199 4,615 2,891 280,266 1,349,163 - 5,593 481,527 - 90,849 - 118,000 159,087 892,491 23,817 27,331 256,670 610,292	0.44 0.75 0.18 0.00 3.94 1.34 3.96 0.50 0.15 0.10 8.25 39.70 0.00 0.16 14.60 0.00 6.19 0.00 2.82 3.80 21.29 0.57 0.65 5.26 12.51

Table 6, Page 3

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		Differences in transaction terms compared to third party transactions	Differences in transaction terms compared to third party transactions	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Yosun Hong Kong Corp. Ltd. " Yosun Singapore Pte Ltd. " Sertek Incorporated " " Richpower Electronic Devices Co., Ltd " " Richpower Electronic Devices Co., Limited " " " " Peng Yu (Shanghai) Digital Technology Co., Ltd. Peng Yu International Limited "	Yosun Industrial Corp. Richpower Electronic Devices Co., Limited WPG SCM Limited Yosun Hong Kong Corp. Ltd. WPI International (Hong Kong) Limited Yosun Industrial Corp. Yosun Hong Kong Corp. Ltd. WPG Electronics (HK) Limited Yosun Industrial Corp. Yosun Hong Kong Corp. Ltd. WPG Electronics (HK) Limited WPG China (SZ) Inc. Yosun Industrial Corp. Yosun Hong Kong Corp. Ltd. Richpower Electronic Devices Co., Ltd Peng Yu International Limited WPG Electronics (HK) Limited WPG C&C Shanghai Co., Ltd.	Same ultimate parent company " " " " " " " " " " " " " " " " "	Sales " " " " " " " " " " " " " " " " "	732,683) ($ 918,780) ( 475,318) ( 386,862) ( 109,946) ( 518,278) ( 708,224) ( 1,254,194) ( 745,323) ( 186,696) ( 181,501) ( 659,024) ( 5,343,396) ( 3,934,578) ( 313,626) ( 185,627) ( 554,792) ( 1,822,013) (	2.16) ( 2.71) ( 7.95) ( 6.47) ( 0.87) ( 4.08) ( 5.58) ( 13.11) ( 7.79) ( 1.95) ( 1.02) ( 3.69) ( 29.88) ( 22.00) ( 1.75) ( 98.69) ( 9.97) ( 32.76) (	Note 3 " " " " " " Note 6 Note 3 " Note 6 " Note 3 " " Note 3 " "	Note 3 " " " " " " Note 6 Note 3 " Note 6 " Note 3 " " Note 4 Note 3 "	Note 3 " " " " " " Note 6 Note 3 " Note 6 " Note 3 " " Note 4 Note 3 "	62,633 $ 79,856 40,656 52,431 91 75,272 154,324 429,255 141,123 40,899 173,011 34,062 537,496 373,865 57,808 29,115 - 131,293	1.28 1.64 4.08 5.27 0.02 12.62 25.87 16.20 5.33 1.54 5.96 1.17 18.53 12.89 1.99 99.95 0.00 53.30

Note 1: As the related party transactions of consolidated subsidiaries exceeding $100 million are voluminous, the related information disclosed here is from the sales aspect. Note 2: The terms and sales prices were negotiated in consideration of different factors including product, cost, market and competition. The collection period is 30~120 days from the end of the month of sales. Note 3: The terms and sales prices were negotiated in consideration of different factors including product, cost, market and competition. The collection period is 30~90 days from the end of the month of sales. Note 4: The terms and sales prices were negotiated in consideration of different factors including product, cost, market and competition. Note 5: The income arose from the provision of administrative resources and management services, and the sales price and terms were determined by the parties. Note 6:The terms and sales prices were negotiated in consideration of different factors including product, cost, market and competition. The collection period is 60~120 days from the end of the month of sales.

Table 6, Page 4

Table 7

WPG Holdings Limited and Subsidiaries

Receivables from related parties reaching $100 million or 20% of paid-in capital or more

Year ended December 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2020 (Note1)	Turnover rate (Note2)	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheetdate (Note 3)	Allowance for doubtfulaccounts
					Amount	Action taken
World Peace Industrial Co., Ltd. World Peace Industrial Co., Ltd. World Peace International (South Asia) Pte Ltd. WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited Silicon Application corp. Silicon Application corp. Pernas Electronics Co., Ltd. Everwiner Enterprise Co., Ltd. Asian Information Technology Inc. Asian Information Technology Inc. Frontek Technology Corporation Frontek Technology Corporation WPG Electronics (HK) Limited WPG Electronics (HK) Limited WPG China (SZ) Inc. Yosun Industrial Corp. Yosun Industrial Corp. Yosun Industrial Corp. Yosun Hong Kong Corp. Ltd. Yosun Hong Kong Corp. Ltd. Sertek Incorporated	WPI International (Hong Kong) Limited WPG Electronics (HK) Limited WPG SCM Limited World Peace Industrial Co., Ltd. WPG China (SZ) Inc. WPG China Inc. WPG Korea Co., Ltd. WPG Electronics (HK) Limited WPG China (SZ) Inc. Silicon Application corp. Pernas Electronics Co., Ltd. Frontek Technology Corporation Apache Communication Inc. Asian Information Technology Inc. WPG Electronics (HK) Limited World Peace Industrial Co., Ltd. WPI International (Hong Kong) Limited WPG China Inc. WPG China (SZ) Inc. WPG China Inc. Yosun Hong Kong Corp. Ltd. WPG China (SZ) Inc. WPG China Inc. Yosun Hong Kong Corp. Ltd.	Same ultimate parent company " " " " " " " " " " " " " " " " " " " " " " "	821,892 $ 272,548 830,876 1,510,530 341,212 472,888 1,721,495 1,333,999 318,767 101,684 326,760 1,380,977 246,080 236,978 238,316 280,266 1,349,163 481,527 118,000 159,087 892,491 256,670 610,292 154,324	8.41 3.49 4.43 9.06 5.37 3.83 2.39 3.60 5.17 10.76 5.60 4.20 7.04 15.41 2.67 40.75 5.29 6.63 4.79 4.08 8.13 4.13 5.58 8.31	- $ 17,355 - - - - - 19,279 4,122 - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - -	821,892 $ 128,225 830,876 1,510,530 341,212 316,863 367,460 1,083,419 314,216 101,684 326,760 438,393 205,310 165,821 100,459 280,263 1,349,163 - 63,763 133,708 456,846 162,021 452,930 154,324	- $ - - - - - - - - - - - - - - - - - - - - - - -

Table 7, Page 1

Overdue receivables

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2020 (Note1)	Turnover rate (Note2)	Amount	Action taken	Amount collected subsequent to the balance sheetdate (Note 3)	Allowance for doubtfulaccounts
Richpower Electronic Devices Co., Ltd Richpower Electronic Devices Co., Ltd Richpower Electronic Devices Co., Limited Richpower Electronic Devices Co., Limited Richpower Electronic Devices Co., Limited Peng Yu International Limited WPG Holdings Limited World Peace International Pte Ltd World Peace International (South Asia) Pte Ltd. World Peace International (South Asia) Pte Ltd. WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited WPG C&C Limited Long-Think International (Hong Kong) Limited AECO Electronics Co., Ltd. Silicon Application corp. Silicon Application (BVI) Corporation Silicon Application (BVI) Corporation Silicon Application Company Limited Silicon Application Company Limited Silicon Application Company Limited Everwiner Enterprise Co., Ltd. Asian Information Technology Inc. WPG South Asia Pte. Ltd. WPG SCM Limited WPG SCM Limited Yosun Industrial Corp.	WPG Electronics (HK) Limited Yosun Industrial Corp. WPG Electronics (HK) Limited Yosun Industrial Corp. Yosun Hong Kong Corp. Ltd. WPG C&C Shanghai Co., Ltd. Asian Information Technology Inc. World Peace International (South Asia) Pte Ltd. WPG SCM Limited WPG South Asia Pte. Ltd. World Peace International (South Asia) Pte Ltd. WPG Electronics (HK) Limited WPG Korea Co., Ltd. WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited WPG Electronics (HK) Limited Silicon Application corp. Peng Yu International Limited Silicon Application corp. WPG Electronics (HK) Limited Yosun Hong Kong Corp. Ltd. Pernas Electronics Co., Ltd. Frontek Technology Corporation WPG Korea Co., Ltd. WPG Electronics (HK) Limited Yosun Singapore Pte Ltd. Richpower Electronic Devices Co., Limited	Same ultimate parent company " " " " " " " " " " " " " " " " " " " " " " " " " " "	429,255 $ 141,123 173,011 537,496 373,865 131,293 100,684 114,016 105,674 135,510 123,146 124,311 214,725 228,575 402,027 690,448 2,023,581 1,150,165 171,013 656,651 463,362 582,277 202,109 508,902 285,535 285,116 142,452 584,078	3.39 10.31 2.03 19.88 17.29 14.74 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00	548 $ - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - -	347,788 $ 141,123 171,875 537,496 373,865 131,293 123 96 105,674 135,510 2,096 124,194 183 61 - 289,402 588,812 - - - - 582,277 - 8,853 - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - -

Table 7, Page 2

Overdue receivables

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2020 (Note1)	Turnover rate (Note2)	Amount	Action taken	Amount collected subsequent to the balance sheetdate (Note 3)	Allowance for doubtfulaccounts
Yosun Hong Kong Corp. Ltd. Yosun Shanghai Corp. Ltd. Yosun South China Corp. Ltd. Sertek Incorporated Richpower Electronic Devices Co., Limited Richpower Electronic Devices Pte Ltd Genuine C&C Holding Inc. (Seychelles) Peng Yu (Shanghai) Digital Technology Co., Ltd. Peng Yu International Limited	WPG China Inc. WPG China (SZ) Inc. WPG China (SZ) Inc. Richpower Electronic Devices Co., Ltd Silicon Application corp. Yosun Singapore Pte Ltd. Peng Yu International Limited WPG C&C Shanghai Co., Ltd. WPG Electronics (HK) Limited	Same ultimate parent company " " " " " " " "	3,453,945 $ 322,150 109,995 285,654 582,228 209,594 115,310 155,771 168,722	0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00	- $ - - - - 56,778 - - -	- - - - - - - - -	900,242 $ - - - - 57,226 - - -	- - - - - - - - -

Note 1: Balance as at December 31, 2020 includes other receivables that exceed $100,000. Note 2: Turnover rate of 0.00 was caused by the receivables amount recorded as other receivables, and thus the turnover rate is not applicable. Note 3: The subsequent collections are amounts collected as of March 16, 2021.

Table 7, Page 3

Table 8

WPG Holdings Limited and Subsidiaries

Significant inter-company transactions during the reporting period Year ended December 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note3)
0 0 0 0 1 1 1 1 1 1 1 2 2 2 2 2 3 3 3 3	WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited World Peace Industrial Co., Ltd. World Peace Industrial Co., Ltd. World Peace Industrial Co., Ltd. World Peace Industrial Co., Ltd. World Peace Industrial Co., Ltd. World Peace Industrial Co., Ltd. World Peace Industrial Co., Ltd. World Peace International (South Asia) Pte Ltd. World Peace International (South Asia) Pte Ltd. World Peace International (South Asia) Pte Ltd. World Peace International (South Asia) Pte Ltd. World Peace International (South Asia) Pte Ltd. WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited	World Peace Industrial Co., Ltd. Silicon Application corp. Asian Information Technology Inc. Yosun Industrial Corp. WPI International (Hong Kong) Limited WPG Electronics (HK) Limited WPG China (SZ) Inc. WPG China Inc. WPG SCM Limited WPG Korea Co., Ltd. Genuine C&C Inc. World Peace Industrial Co., Ltd. WPG C&C (Malaysia) Sdn. Bhd WPG C&C Computers And Peripheral (India) Private Limited WPG SCM Limited WPG C&C (Thailand) Co., Ltd. World Peace Industrial Co., Ltd. World Peace International (South Asia) Pte Ltd. WPG China (SZ) Inc. WPG China Inc.	1 1 1 1 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Sales " " " " " " " " " " " " " " " " " " "	553,738 $ 135,140 133,239 174,937 5,177,800 823,347 556,416 359,827 643,205 943,504 152,993 306,848 212,708 735,496 2,972,762 141,205 8,446,686 1,283,488 1,529,103 1,403,672	Note 11 Note 11 Note 11 Note 11 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5	0.09 0.02 0.02 0.03 0.85 0.14 0.09 0.06 0.11 0.15 0.03 0.05 0.03 0.12 0.49 0.02 1.39 0.21 0.25 0.23

Table 8, Page 1

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note3)
3 3 3 5 7 7 7 7 8 8 9 9 10 10 10 10 10 11 11 12 12 12 12 13 13 15	WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited Longview Technology Inc. Silicon Application corp. Silicon Application corp. Silicon Application corp. Silicon Application corp. Pernas Electronics Co., Ltd. Pernas Electronics Co., Ltd. Everwiner Enterprise Co., Ltd. Everwiner Enterprise Co., Ltd. Asian Information Technology Inc. Asian Information Technology Inc. Asian Information Technology Inc. Asian Information Technology Inc. Asian Information Technology Inc. Henshen Electric Trading Co.,Ltd. Henshen Electric Trading Co.,Ltd. Frontek Technology Corporation Frontek Technology Corporation Frontek Technology Corporation Frontek Technology Corporation Apache Communication Inc. Apache Communication Inc. WPG Electronics (HK) Limited	WPG SCM Limited WPG Korea Co., Ltd. Peng Yu International Limited World Peace Industrial Co., Ltd. Pernas Electronics Co., Ltd. WPG Electronics (HK) Limited WPG China (SZ) Inc. WPG China Inc. Silicon Application corp. Everwiner Enterprise Co., Ltd. Silicon Application corp. Pernas Electronics Co., Ltd. World Peace International (South Asia) Pte Ltd. Frontek Technology Corporation Apache Communication Inc. WPG Electronics (HK) Limited WPG China (SZ) Inc. Asian Information Technology Inc. Frontek Technology Corporation Asian Information Technology Inc. Gather Technology Incorporation Limited WPG Electronics (HK) Limited WPG China Inc. Asian Information Technology Inc. Frontek Technology Corporation World Peace Industrial Co., Ltd.	3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Sales " " " " " " " " " " " " " " " " " " " " " " " " "	978,321 $ 2,071,930 140,373 197,757 468,345 4,421,725 1,223,630 234,857 721,566 422,545 426,734 1,644,611 118,770 4,312,185 1,151,427 105,618 232,221 124,002 351,102 3,350,636 100,113 522,069 164,238 630,026 117,997 5,751,389	Note 5 Note 5 Note 5 Note 5 Note 9 and 11 Note 9 and 12 Note 9 and 12 Note 9 and 12 Note 9 and 11 Note 4 Note 9 and 11 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 5	0.16 0.34 0.02 0.03 0.08 0.73 0.20 0.04 0.12 0.07 0.07 0.27 0.02 0.71 0.19 0.02 0.04 0.02 0.06 0.55 0.02 0.09 0.03 0.10 0.02 0.94

Table 8, Page 2

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note3)
15 15 15 16 17 18 19 21 21 21 21 21 22 22 22 22 23 23 24 24 24 25 25 25 26 26	WPG Electronics (HK) Limited WPG Electronics (HK) Limited WPG Electronics (HK) Limited WPG China (SZ) Inc. WPG China Inc. WPG Americas Inc. WPG South Asia Pte. Ltd. Yosun Industrial Corp. Yosun Industrial Corp. Yosun Industrial Corp. Yosun Industrial Corp. Yosun Industrial Corp. Yosun Hong Kong Corp. Ltd. Yosun Hong Kong Corp. Ltd. Yosun Hong Kong Corp. Ltd. Yosun Hong Kong Corp. Ltd. Yosun Singapore Pte Ltd. Yosun Singapore Pte Ltd. Sertek Incorporated Sertek Incorporated Sertek Incorporated Richpower Electronic Devices Co., Ltd Richpower Electronic Devices Co., Ltd Richpower Electronic Devices Co., Ltd Richpower Electronic Devices Co., Limited Richpower Electronic Devices Co., Limited	WPI International (Hong Kong) Limited Silicon Application corp. Peng Yu International Limited WPG China Inc. WPG China (SZ) Inc. World Peace Industrial Co., Ltd. World Peace International (South Asia) Pte Ltd. WPG China (SZ) Inc. WPG China Inc. Yosun Hong Kong Corp. Ltd. Richpower Electronic Devices Co., Ltd Richpower Electronic Devices Co., Limited WPG China (SZ) Inc. WPG China Inc. Yosun Industrial Corp. Richpower Electronic Devices Co., Limited WPG SCM Limited Yosun Hong Kong Corp. Ltd. WPI International (Hong Kong) Limited Yosun Industrial Corp. Yosun Hong Kong Corp. Ltd. WPG Electronics (HK) Limited Yosun Industrial Corp. Yosun Hong Kong Corp. Ltd. WPG Electronics (HK) Limited WPG China (SZ) Inc.	3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Sales " " " " " " " " " " " " " " " " " " " " " " " " "	3,753,786 $ 138,853 3,200,033 1,595,429 479,009 846,448 382,603 556,740 562,908 4,373,879 263,877 166,749 744,826 2,394,984 732,683 918,780 475,318 386,862 109,946 518,278 708,224 1,254,194 745,323 186,696 181,501 659,024	Note 5 Note 5 Note 5 Note 8 Note 5 Note 5 Note 11 Note 8 Note 8 Note 5 Note 5 Note 5 Note 8 Note 8 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 8 Note 5 Note 5 Note 8 Note 8	0.62 0.02 0.52 0.26 0.08 0.14 0.06 0.09 0.09 0.72 0.04 0.03 0.12 0.39 0.12 0.15 0.08 0.06 0.02 0.09 0.12 0.21 0.12 0.03 0.03 0.11

Table 8, Page 3

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note3)
26 26 26 40 27 27 1 1 2 3 3 3 3 7 7 8 9 10 10 12 12 15 15 16 21 21	Richpower Electronic Devices Co., Limited Richpower Electronic Devices Co., Limited Richpower Electronic Devices Co., Limited Peng Yu (Shanghai) Digital Technology Co., Ltd. Peng Yu International Limited Peng Yu International Limited World Peace Industrial Co., Ltd. World Peace Industrial Co., Ltd. World Peace International (South Asia) Pte Ltd. WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited Silicon Application corp. Silicon Application corp. Pernas Electronics Co., Ltd. Everwiner Enterprise Co., Ltd. Asian Information Technology Inc. Asian Information Technology Inc. Frontek Technology Corporation Frontek Technology Corporation WPG Electronics (HK) Limited WPG Electronics (HK) Limited WPG China (SZ) Inc. Yosun Industrial Corp. Yosun Industrial Corp.	Yosun Industrial Corp. Yosun Hong Kong Corp. Ltd. Richpower Electronic Devices Co., Ltd Peng Yu International Limited WPG Electronics (HK) Limited WPG C&C Shanghai Co., Ltd. WPI International (Hong Kong) Limited WPG Electronics (HK) Limited WPG SCM Limited World Peace Industrial Co., Ltd. WPG China (SZ) Inc. WPG China Inc. WPG Korea Co., Ltd. WPG Electronics (HK) Limited WPG China (SZ) Inc. Silicon Application corp. Pernas Electronics Co., Ltd. Frontek Technology Corporation Apache Communication Inc. Asian Information Technology Inc. WPG Electronics (HK) Limited World Peace Industrial Co., Ltd. WPI International (Hong Kong) Limited WPG China Inc. WPG China (SZ) Inc. WPG China Inc.	3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Sales " " " " " Accounts receivable " " " " " " " " " " " " " " " " " " "	5,343,396 $ 3,934,578 313,626 185,627 554,792 1,822,013 821,892 272,548 830,876 1,510,530 341,212 472,888 1,721,495 1,333,999 318,767 101,684 326,760 1,380,977 246,080 236,978 238,316 280,266 1,349,163 481,527 118,000 159,087	Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 5 Note 9 and 12 Note 9 and 12 Note 9 and 11 Note 4 Note 4 Note 4 Note 4 Note 4 Note 10 Note 10 Note 8 Note 8 Note 8	0.88 0.65 0.05 0.03 0.09 0.30 0.35 0.12 0.36 0.65 0.15 0.20 0.74 0.57 0.14 0.04 0.14 0.59 0.11 0.10 0.10 0.12 0.58 0.21 0.05 0.07

Table 8, Page 4

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note3)
21 22 22 24 25 25 26 26 26 27 0 28 2 2 3 3 3 29 6 32 7 33 33 34	Yosun Industrial Corp. Yosun Hong Kong Corp. Ltd. Yosun Hong Kong Corp. Ltd. Sertek Incorporated Richpower Electronic Devices Co., Ltd Richpower Electronic Devices Co., Ltd Richpower Electronic Devices Co., Limited Richpower Electronic Devices Co., Limited Richpower Electronic Devices Co., Limited Peng Yu International Limited WPG Holdings Limited World Peace International Pte Ltd World Peace International (South Asia) Pte Ltd. World Peace International (South Asia) Pte Ltd. WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited WPG C&C Limited Long-Think International (Hong Kong) Limited AECO Electronics Co., Ltd. Silicon Application corp. Silicon Application (BVI) Corporation Silicon Application (BVI) Corporation Silicon Application Company Limited	Yosun Hong Kong Corp. Ltd. WPG China (SZ) Inc. WPG China Inc. Yosun Hong Kong Corp. Ltd. WPG Electronics (HK) Limited Yosun Industrial Corp. WPG Electronics (HK) Limited Yosun Industrial Corp. Yosun Hong Kong Corp. Ltd. WPG C&C Shanghai Co., Ltd. Asian Information Technology Inc. World Peace International (South Asia) Pte Ltd. WPG SCM Limited WPG South Asia Pte. Ltd. World Peace International (South Asia) Pte Ltd. WPG Electronics (HK) Limited WPG Korea Co., Ltd. WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited WPG Electronics (HK) Limited Silicon Application corp. Peng Yu International Limited Silicon Application corp.	3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Accounts receivable " " " " " " " " " Other receivables " " " " " " " " " " " " "	892,491 $ 256,670 610,292 154,324 429,255 141,123 173,011 537,496 373,865 131,293 100,684 114,016 105,674 135,510 123,146 124,311 214,725 228,575 402,027 690,448 2,023,581 1,150,165 171,013 656,651	Note 5 Note 8 Note 8 Note 5 Note 8 Note 5 Note 5 Note 5 Note 5 Note 5 Note 13 Note 7 Note 6 Note 6 Note 6 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7	0.38 0.11 0.26 0.07 0.18 0.06 0.07 0.23 0.16 0.06 0.04 0.05 0.05 0.06 0.05 0.05 0.09 0.10 0.17 0.30 0.86 0.49 0.07 0.28

Table 8, Page 5

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note3)
34 34 9 10 19 39 39 21 22 35 36 24 26 38 37 40 27	Silicon Application Company Limited Silicon Application Company Limited Everwiner Enterprise Co., Ltd. Asian Information Technology Inc. WPG South Asia Pte. Ltd. WPG SCM Limited WPG SCM Limited Yosun Industrial Corp. Yosun Hong Kong Corp. Ltd. Yosun Shanghai Corp. Ltd. Yosun South China Corp. Ltd. Sertek Incorporated Richpower Electronic Devices Co., Limited Richpower Electronic Devices Pte Ltd Genuine C&C Holding Inc. (Seychelles) Peng Yu (Shanghai) Digital Technology Co., Ltd. Peng Yu International Limited	WPG Electronics (HK) Limited Yosun Hong Kong Corp. Ltd. Pernas Electronics Co., Ltd. Frontek Technology Corporation WPG Korea Co., Ltd. WPG Electronics (HK) Limited Yosun Singapore Pte Ltd. Richpower Electronic Devices Co., Limited WPG China Inc. WPG China (SZ) Inc. WPG China (SZ) Inc. Richpower Electronic Devices Co., Ltd Silicon Application corp. Yosun Singapore Pte Ltd. Peng Yu International Limited WPG C&C Shanghai Co., Ltd. WPG Electronics (HK) Limited	3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Other receivables " " " " " " " " " " " " " " " "	463,362 $ 582,277 202,109 508,902 285,535 285,116 142,452 584,078 3,453,945 322,150 109,995 285,654 582,228 209,594 115,310 155,771 168,722	Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 14	0.20 0.25 0.09 0.22 0.12 0.12 0.06 0.25 1.48 0.14 0.05 0.12 0.25 0.09 0.05 0.07 0.07

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

• (1) Parent company is ‘0’.

(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories:

• (1) Parent company to subsidiary.

• (2) Subsidiary to parent company.

• (3) Subsidiary to subsidiary.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: The terms and sales prices were negotiated in consideration of different factors including product, cost, market and competition. The collection period is 30~120 days from the end of the month of sales. Note 5: The terms and sales prices were negotiated in consideration of different factors including product, cost, market and competition. The collection period is 30~90 days from the end of the month of sales. Note 6: The amount receivable pertains to receipts under custody.

Note 7: Mainly accrued financing charges.

Note 8: The terms and sales prices were negotiated in consideration of different factors including product, cost, market and competition. The collection period is 60~120 days from the end of the month of sales. Note 9: The terms and sales prices were negotiated in consideration of different factors including product, cost, market and competition.

Table 8, Page 6

Note 10: The collection period is 60 days from the end of the month of sales. Note 11: The collection period is 30 days from the end of the month of sales. Note 12: The collection period is 90 days from the end of the month of sales. Note 13: The amount receivable arose from filing of consolidated tax return. Note 14: The receivable was due from a payment to supplier on behalf of associates.

Table 8, Page 7

WPG Holdings Limited and Subsidiaries

Information on investees (excluding information on investments in Mainland china)

Year ended December 31, 2020

Table 9

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investmentamount	Initial investmentamount	Sharesheld as at December31,2020	Sharesheld as at December31,2020	Sharesheld as at December31,2020	Net profit (loss) of the investee for the year ended December 31,2020	Investment income (loss) recognized by the Company for the year ended December 31, 2020 (Note 1)	Footnote
				Balance as at December 31, 2020	Balance as at December 31, 2019	Numberofshares	Ownership (%)	Bookvalue
WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited WPG Holdings Limited World Peace Industrial Co., Ltd. World Peace Industrial Co., Ltd. World Peace Industrial Co., Ltd.	World Peace Industrial Co., Ltd. Asian Information Technology Inc. Silicon Application corp. WPG Electronics Limited WPG Korea Co., Ltd. WPG International (CI) Limited Yosun Industrial Corp. WPG Investment Co., Ltd. Trigold Holdings Limited WT Microelectronics Co., Ltd. World Peace International (BVI) Ltd. WPI Investment Holding (BVI) Company Ltd. Longview Technology Inc.	Taiwan Taiwan Taiwan Taiwan South Korea Cayman Islands Taiwan Taiwan Taiwan Taiwan British Virgin Islands British Virgin Islands Taiwan	Agent and sales of electronic/ eletrical components Sales of electronic/ electrical components Sales of computer software and electronic components Agent and sales of electronic/ eletrical components Agent and sales of electronic/ eletrical components Holding company Sales of electronic/ electrical components Investment company Investment company Sales of electronic/ electrical components Holding company Holding company Agent and sales ofelectronic/ eletrical components	18,471,669 $ 4,863,464 5,717,962 14,735 169,071 4,583,583 12,144,406 2,102,997 707,968 8,111,638 1,132,162 2,774,146 364,290	18,471,669 $ 4,863,464 5,717,962 14,735 169,071 4,583,583 12,144,406 502,997 707,968 0 1,132,162 2,774,146 364,290	1,592,500,000 530,000,000 579,000,000 3,920,000 1,087,794 150,282,520 362,074,400 210,000,000 48,139,319 177,110,000 34,196,393 83,179,435 33,900,000	100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 60.50 22.47 100.00 100.00 100.00	24,925,013 $ 5,702,692 7,288,058 60,308 470,660 5,846,935 11,919,185 2,094,595 811,453 11,365,951 3,780,896 19,755,319 540,409	3,311,641 $ 1,137,808 1,079,540 16,991 (1,074) 614,911 931,184 3,670 212,483 3,841,846 195,436 2,331,259 44,106	3,311,641 $ 1,137,808 1,079,540 17,011 (1,074) 614,911 927,668 3,670 129,897 828,672 - - -	Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 6 Note 2 and 5 Note 2 and 5 Note 2 and 5

Table 9, Page 1

Investor	Investee	Location	Main business activities	Initial investmentamount	Initial investmentamount	Sharesheld as at December31,2020	Sharesheld as at December31,2020	Sharesheld as at December31,2020	Net profit (loss) of the investee for the year ended December 31,2020	Investment income (loss) recognized by the Company for the year ended December 31, 2020 (Note 1)	Footnote
				Balance as at December 31, 2020	Balance as at December 31, 2019	Numberofshares	Ownership (%)	Bookvalue
World Peace Industrial Co., Ltd. World Peace Industrial Co., Ltd. Longview Technology Inc. Longview Technology Inc. AECO Technology Co., Ltd. Silicon Application corp. Silicon Application corp. Silicon Application corp. Silicon Application corp. Pernas Electronics Co., Ltd. Asian Information Technology Inc. Asian Information Technology Inc. Asian Information Technology Inc. Asian Information Technology Inc. Asian Information Technology Inc. Frontek Technology Corporation	Chainpower Technology Corp. AECO Technology Co., Ltd. Longview Technology GC Limited Long-Think International Co., Ltd. Teco Enterprise Holding (BVI) Co., Ltd. Silicon Application (BVI) Corporation Win-Win Systems Ltd. SAC Components (South Asia) Pte. Ltd. Pernas Electronics Co., Ltd. Everwiner Enterprise Co., Ltd. Frontek Technology Corporation Apache Communication Inc. Henshen Electric Trading Co.,Ltd. Adivic Technology Co., Ltd. Fame Hall International Co., Ltd. Frontek International Limited	Taiwan Taiwan British Virgin Islands Taiwan British Virgin Islands British Virgin Islands British Virgin Islands Singapore Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan British Virgin Islands British Virgin Islands	Agent and sales of electronic/ eletrical components Agent and sales of electronic/ eletrical components Holding company Agent and sales of electronic/ eletrical components Investment company Holding company Holding company Sales of computer software and electronic components Agent and sales of electronic/ eletrical components Agent and sales of electronic/ eletrical components Sales of electronic/ electrical components Sales of electronic/ electrical components Sales of electronic/ electrical components Import and export business for electronic components Investment company Investment company	66,261 $ 1,468,555 335,328 37,302 436,280 706,402 24,015 104,510 959,504 343,959 1,515,256 480,313 124,521 206,200 155,558 101,862	66,261 $ 1,468,555 335,328 37,302 436,280 706,402 24,015 104,510 959,504 343,959 1,515,256 180,313 124,521 206,200 155,558 101,862	9,781,452 94,600,000 11,300,000 4,000,000 12,610,000 22,000,000 765,000 3,500,000 73,500,000 28,000,000 214,563,352 154,300,000 10,000,000 4,410,000 4,703,107 2,970,000	39.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 25.94 100.00 100.00	165,518 $ 1,596,196 523,931 47,204 759,435 3,092,841 24,609 108,742 1,226,080 820,033 2,068,591 1,550,032 124,495 26,952 278,756 120,952	104,885 $ 39,330 21,275 1,352 12,569 58,681 192 1,715 210,436 119,521 346,793 169,434 11,225 19,363) ( 19,137) ( 2,556	- $ - - - - - - - - - - - - - - -	Note 2 and 3 Note 2 and 5 Note 2 and 5 Note 2 and 5 Note 2 and 5 Note 2 and 5 Note 2 and 5 Note 2 and 5 Note 2 and 5 Note 2 and 5 Note 2 and 5 Note 2 and 5 Note 2 and 5 Note 2 and 3 Note 2 and 5 Note 2 and 5

Table 9, Page 2

Investor	Investee	Location	Main business activities	Initial investmentamount	Initial investmentamount	Sharesheld as at December31,2020	Sharesheld as at December31,2020	Sharesheld as at December31,2020	Net profit (loss) of the investee for the year ended December 31,2020	Investment income (loss) recognized by the Company for the year ended December 31, 2020 (Note 1)	Footnote
				Balance as at December 31, 2020	Balance as at December 31, 2019	Numberofshares	Ownership (%)	Bookvalue
Yosun Industrial Corp. Yosun Industrial Corp. Yosun Industrial Corp. Yosun Industrial Corp. Yosun Industrial Corp. Sertek Incorporated Richpower Electronic Devices Co., Ltd Richpower Electronic Devices Co., Ltd WPG Investment Co., Ltd. WPG Investment Co., Ltd. WPG Investment Co., Ltd. WPG Investment Co., Ltd. WPG Investment Co., Ltd. WPG Investment Co., Ltd. WPG Investment Co., Ltd. Trigold Holdings Limited Trigold Holdings Limited	Suntop Investments Limited Sertek Incorporated Pan-World ControlTechnologies, Inc. Eesource Corp. Richpower Electronic Devices Co., Ltd Sertek Limited Richpower Electronic Devices Co., Limited Richpower Electronic Devices Pte Ltd. Eesource Corp. Pan-World ControlTechnologies, Inc. Sunrise Technology Co., Ltd. Trigold Holdings Limited AutoSys Co., Ltd. Beauteek Global Wellness Corporation Limited LaaS Holdings (Samoa) Limited Genuine C&C Inc. Trigold (Hong Kong) CompanyLimited	Cayman Islands Taiwan Taiwan Taiwan Taiwan Hong Kong Hong Kong Singapore Taiwan Taiwan Taiwan Taiwan Cayman Islands Hong Kong Samoa Taiwan Hong Kong	Investment company Sales of electronic/ electrical components Wholesale of machinery Sales of electronic/electrical components, office machinery and equipment Sales of electronic/ electrical components Sales of electronic/ electrical components Sales of electronic components Sales of electronic components Sales of electronic/ electrical components, office machinery and equipment Wholesale ofmachinery Manufacturing of computer and itsperipheral equipment Investment company Holding company Community e-commerce tradingplat form and relatedservices Holding company Sales of electronicproducts and itsperipheral equipment Holding company	1,812,188 $ 1,616,722 19,920 11,520 2,092,631 83,494 284,898 1,988 11,520 17,800 50,000 230 73,000 13,663 1,142,712 1,093,697 510,981	1,812,188 $ 1,616,722 19,920 11,520 2,092,631 83,494 284,898 1,988 11,520 17,800 50,000 230 73,000 13,663 - 1,093,697 510,981	50,700,000 94,828,100 1,660,000 1,080,000 85,000,000 19,500,000 63,000,000 10,000 1,080,000 1,565,218 3,279,800 10,000 5,000,000 354,400 40,060,000 79,569,450 130,200,000	100.00 100.00 24.24 20.00 100.00 100.00 100.00 100.00 20.00 22.86 10.67 0.01 16.25 23.08 100.00 100.00 100.00	4,979,713 $ 1,724,138 - 32,545 2,056,656 75,794 2,317,803 215,389 31,730 - 44,389 242 70,282 8,477 1,134,382 1,129,528 696,720	71,286 $ 126,790 - 16,313 220,444 4,763 125,946 3,593 16,313 - 9,972 212,882 1,209) ( 2,172) ( 19,026) ( 103,454 129,503	- $ - - - - - - - - - - - - - - - -	Note 2 and 5 Note 2 and 5 Note 2 and 3 Note 2 and 3 Note 2 and 5 Note 2 and 5 Note 2 and 5 Note 2 and 5 Note 2 and 3 Note 2 and 3 Note 2 and 3 Note 2 and 3 Note 2 and 3 Note 2 and 3 Note 2 and 5 Note 2 and 5 Note 2 and 5

Table 9, Page 3

Investor	Investee	Location	Main business activities	Initial investmentamount	Initial investmentamount	Sharesheld as at December31,2020	Sharesheld as at December31,2020	Sharesheld as at December31,2020	Net profit (loss) of the investee for the year ended December 31,2020	Investment income (loss) recognized by the Company for the year ended December 31, 2020 (Note 1)	Footnote
				Balance as at December 31, 2020	Balance as at December 31, 2019	Numberofshares	Ownership (%)	Bookvalue
Genuine C&C Inc. Genuine C&C Inc. Genuine C&C Inc.	Hoban Inc. Genuine C&C Holding Inc. (Seychelles) Sunrise Technology Co., Ltd.	Taiwan Seychelles Taiwan	An E-commerce company which operates B2C and O2O businesses Holding company Manufacturing of computer and its peripheral equipment	79,999 $ 193,870 12,636	79,999 $ 193,870 12,636	8,000,000 6,500,000 1,682,151	100.00 100.00 5.47	2,018 $ 129,174 3,192	8,256) ($ 4,432 9,972	- $ - -	Note 2 and 5 Note 2 and 5 Note 2 and 3

Note 1: Investment income (loss) recognized by the company including realized (unrealized) gain or loss from upstream intercompany transactions and amortization of investment discount (premium). Note 2: Investment income (loss) recognized by each subsidiary.

Note 3: An investee company accounted for under the equity method by subsidiary. Note 4: A subsidiary. Note 5: An indirect subsidiary.

Note 6: An investee company accounted for under the equity method by the Company.

Table 9, Page 4

WPG Holdings Limited and Subsidiaries

Information on investments in Mainland China

Year ended December 31, 2020

Table 10

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2020	Amount remitted from Taiwan to Mainland China / Amount remitted back to Taiwan for the year ended December 31,2020	Amount remitted from Taiwan to Mainland China / Amount remitted back to Taiwan for the year ended December 31,2020	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2020	Net income of investee for the year ended December 31, 2020	Investment income (loss) recognized by the Company for the year ended December 31, 2020 (Note 3) Ownership held by the Company (direct or indirect)	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2020 Footnote Book value of investments in Mainland China as of December 31, 2020(Note 6)
					Remitted to Mainland China	Remitted back toTaiwan
WPG China Inc. WPG China (SZ) Inc. Suzhou Xinning Bonded Warehouse Co., Ltd. Gain Tune Logistics (Shanghai) Co., Ltd. Suzhou Xinning Logistics Co., Ltd. WPG C&C Shanghai Co., Ltd. Yosun Shanghai Corp. Ltd. Yosun South China Corp. Ltd. Qegoo Technology Co., Ltd. Beauteek (Shanghai) Global Wellness Corporation Limited	Agent for selling electronic/electrical components Sales of computer software and electronic components Warehousing services Warehousing services / extra work Warehousing services Sales of electronic/electrical products Sales of electronic components and warehousing services Sales of electronic /electrical components Business e-commerce platform Community e-commerce trading platform and related services	1,656,463 $ 146,998 36,198 43,770 65,655 232,580 274,945 140,364 52,688 48,416	1 1 1 1 1 1 1 1 1 1	1,661,464 $ 99,575 26,723 14,114 17,508 243,992 219,296 - 4,566 -	- $ - - - - - - - - 7,447	- $ - - - - - - - - -	1,661,464 $ 99,575 26,723 14,114 17,508 243,992 219,296 - 4,566 7,447	240,139 $ 130,440 6,776 8,262) ( 11,861 70,197 5,954 4,436 - -	100.00 240,139 $ 100.00 130,440 49.00 3,320 40.00 3,305) ( 29.40 3,487 100.00 42,476 100.00 5,954 100.00 4,436 15.00 - 15.38 -	2,599,972 $ - $ 876,539 - Note 3 68,733 - 24,713 - 44,332 - 221,663 - Note 6 370,578 - 210,701 - - - - -

Table 10, Page 1

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note1)	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2020	Amount remitted from Taiwan to Mainland China / Amount remitted back to Taiwan for the year ended December 31,2020	Amount remitted from Taiwan to Mainland China / Amount remitted back to Taiwan for the year ended December 31,2020	Accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2020	Net income of investee for the year ended December 31, 2020	Investment income (loss) recognized by the Company for the year ended December 31, 2020 (Note 3) Ownership held by the Company (direct or indirect)	Footnote Accumulated amount of investment income remitted back to Taiwan as of December 31, 2020 Book value of investments in Mainland China as of December 31, 2020(Note 6)
					Remitted to Mainland China	Remitted back toTaiwan
LaaS (Dongguan) Supply Chain Management Limited Peng Yu (Shanghai) Digital Technology Co., Ltd Trigolduo (Shanghai) Industrial Development Ltd. Trigold Tongle (Shanghai) Industrial Development Ltd.	Supply chain management, design and related businesses. Sales of electronic/electrical products Children’s indoor amusement park Children’s indoor amusement park	1,139,200 $ 98,483 43,770 6,566	1 1 1 1	- $ 185,506 30,639 -	1,139,200 $ - - -	- $ - - -	1,139,200 $ 185,506 30,639 -	19,019) ($ 80,810 27,308) ( 2,829) (	100.00 19,019) ($ 100.00 48,898 70.00 11,567) ( 70.00 1,198) (	1,132,678 $ - $ Note 8 199,170 - 1,597) ( - 1,026) ( - Note 7

Note 1: Through investing in an existing company in the third area, which then invested in the investee in Mainland China, is ‘1’.

• Note 2: The investment income/loss for the year ended December 31, 2020 that was recognized by the Company was based on the financial statements audited by international accounting firm which has cooperative relationship with accounting firm in R.O.C.

• Note 3: WPG International (Hong Kong) Limited invested in WPG (SZ) Inc. in the amount of HKD 10 million, which is part of the distribution of earnings from WPG China Inc. The investment had been permitted by Investment Commission, and was excluded from the ceiling of investment amount in Mainland China.

• Note 4: For paid-in capital, amount remitted from Taiwan to Mainland China/ amount remitted back to Taiwan for the year ended December 31, 2020, accumulated amount of remittance from Taiwan to Mainland China as of December 31, 2020, book value of investments in Mainland China as of December 31, 2020, accumulated amount of investment income remitted back to Taiwan as of December 31, 2020, etc., the exchange rates used were USD 1: NTD 28.48, HKD 1: NTD 3.673 and RMB 1: NTD 4.377.

• Note 5: The ending balance of investment was calculated based on combined ownership percentage held by the Company.

• Note 6: The retirement of World Peace Industrial Co., Ltd.’s indirect investment in Mainland China, WPG C&C Shanghai Co., Ltd., has been approved by Investment Commission, Ministry of Economic Affairs on May 22, 2019

amounting to USD 11,650 thousand. World Peace Industrial Co., Ltd. will submit an application to Investment Commission, Ministry of Economic Affairs for deducting the accumulated amount of remittance from Taiwan to Mainland China when the consideration arising from transfer of equity interests is remitted back from the investment in the third area, WPI International (HK) Limited.

Note 7: Trigold Tongle (Shanghai) Industrial Development Ltd. is a wholly-owned subsidiary of Trigolduo (Shanghai) Industrial Development Ltd.

• Note 8: WPG Investment Co., Ltd. acquired a 100% equity interest in Mainland China investee, LaaS (Dongguan) Supply Chain Management Limited, through a reinvestment, LaaS Holdings (HK) Limited, of WPG Investment Co., Ltd.'s investment in the third area, Samoa, on August 2, 2020. WPG Investment Co., Ltd. had received a post-approval from the MOEA.

Table 10, Page 2

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December31,2020	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed bytheInvestmentCommissionof MOEA
WPG Holdings Limited World Peace Industrial Co., Ltd. and its subsidiaries Silicon Application Corp. and its subsidiaries Yosun Industrial Corp. and its subsidiares WPG Investment Co., Ltd. Trigold Holdings Limited	1,819,384 $ 364,779 12,296 238,805 1,151,214 549,346	1,988,158 $ 440,714 17,879 505,919 1,160,557 549,346	39,601,812 $ 14,982,523 4,372,835 4,898,970 1,256,757 766,103

(1) Exchange rates as of December 31, 2020 were USD 1: NTD28.48, HKD 1 : NTD 3.673 and RMB 1 : NTD 4.377.

(2) The ceiling of investment amount of the company is calculated based on the investor's net assets.

Table 10, Page 3

Table 11

WPG Holdings Limited and Subsidiaries

Major shareholders information

December 31, 2020

Name of major shareholders	Shares	Shares
	Number of shares held	Ownership (%)
Fubon Life Assurance Co., Ltd. 126,362,000 Description: If the company applies Taiwan Depository & Clearing Corporation for the information of the table, the following can be explained in the notes		6,72% of the table.

• (a) The major shareholders information was derived from the data that the Company issued common shares (including treasury shares) and preference shares in dematerialised form which were registered and held by the shareholders above 5% on the last operating date of each quarter and was calculated by the Taiwan Depository & Clearing Corporation. The share capital which was recorded in the financial statements may be different from the actual number of shares in dematerialised form due to the difference in the calculation basis.

• (b) If the aforementioned data contains shares which were held in trust by the shareholders, the data is disclosed as a separate account of client which was set by the trustee. As for the shareholder who reports share equity as an insider

• whose shareholding ratio is greater than 10%, in accordance with the Securities and Exchange Act, the shareholding ratio includes the self-owned shares and shares held in trust, and at the same time, the shareholder has the power t

• decide how to allocate the trust assets. For the information on reported share equity of insider, please refer to Market Observation Post System.

Table 11, Page 1