WPG - Interim / Quarterly Report 2020

WPG HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS

MARCH 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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REVIEW REPORT OF INDEPENDENT ACCOUNTANTS TRANSLATED FROM CHINESE

To the Board of Directors and Stockholders of WPG Holdings Limited

Introduction

We have reviewed the accompanying consolidated balance sheets of WPG Holdings Limited and subsidiaries (the “Group”) as at March 31, 2020 and 2019, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the three months then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the following paragraph, we conducted our reviews in accordance with the Statement of Auditing Standards No. 65 “Review of Financial Information Performed by the Independent Auditor of the Entity” in the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As explained in Notes 4(3)B and 6(9), the financial statements of certain insignificant consolidated subsidiaries and investments accounted for using equity method were not reviewed by independent accountants. Those statements reflect total assets (including investments accounted for using the equity method) of NT$13,902,450 thousand and NT$17,752,706 thousand, constituting 6% and 9% of the consolidated total assets, and total liabilities of NT$8,665,479 thousand and NT$7,325,416 thousand, constituting 5% and 6% of the consolidated total liabilities as at March 31, 2020 and 2019, respectively, and total comprehensive income (including share of profit (loss) of associates and joint ventures accounted for using the equity method and share of other comprehensive income of associates and joint ventures accounted for using the equity method) of NT$82,728 thousand and NT$52,322

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thousand, constituting 4% and 3% of the consolidated total comprehensive income for the three months then ended, respectively.

Qualified Conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries been reviewed by independent accountants, that we might have become aware of had it not been for the situation described above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at March 31, 2020 and 2019, and of its consolidated financial performance and its consolidated cash flows for the three months then ended in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

Lin, Chun-Yao Chou, Chien-hung

For and on behalf of PricewaterhouseCoopers, Taiwan May 12, 2020

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 review 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 review report of independent accountants 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

MARCH 31, 2020, DECEMBER 31, 2019 AND MARCH 31, 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

(THE CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2020 AND 2019 ARE REVIEWED, NOT AUDITIED)

Assets	Notes	March31,2020	December31,2019 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	March31,2019
		Amount $ 13,227,536 34,773 196,111 1,719,929 106,785,878 126,386 11,550,719 1,467 82,882 81,536,164 3,691,347 819,864 219,773,056 1,264,094 24,956 8,727,606 10,621,447 1,016,677 1,047,077 5,683,599 495,057 - 268,118 29,148,631 $ 248,921,687	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	Amount $ 5,572,934 29,882 195,996 3,273,312 80,125,699 85,304 11,112,430 1,594 51,075 69,387,325 1,636,120 137,268 171,608,939 1,296,495 32,035 627,880 5,748,759 1,328,905 1,119,310 5,564,134 467,006 - 370,672 16,555,196 $ 188,164,135	%
Current assets Cash and cash equivalents Financial assets at fair value through profit or loss - current Current financial assets at amortized cost 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 Investments accounted for using the 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	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(9) 6(10) and 8 6(11) 6(12) and 8 6(13) 6(14) 6(15)				3 - - 2 42 - 6 - - 37 1 -
					91
					1 - - 3 1 1 3 - - -
					9
					100

(Continued)

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WPG HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2020, DECEMBER 31, 2019 AND MARCH 31, 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

(THE CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2020 AND 2019 ARE REVIEWED, NOT AUDITIED)

					March31,2020				December31,2019				March31,2019
Liabilities andEquity		Notes			Amount	%			Amount	%			Amount	%
Current liabilities
Short-term borrowings	6(16)			$	64,918,062	26		$	68,891,614	30		$	46,045,135	24
Short-term notes and bills payable	6(17)				5,936,216		2		5,555,424		2		5,054,831	3
Financial liabilities at fair value through	6(2)
profit or loss - current					3,313		-		16,051		-		4,169	-
Notes payable					83,557		-		34,642		-		65,043	-
Accounts payable					71,209,166	29			63,588,170	28			54,017,241	29
Accounts payable - related parties	7(3)				69,956		-		653		-		45	-
Other payables					7,488,390		3		5,697,289		2		4,517,585	2
Current income tax liabilities					1,113,217		1		1,310,711		1		1,045,068	1
Current lease liabilities					424,658		-		416,902		-		416,795	-
Other current liabilities	6(18)(19)				13,230,570		5		11,447,611		5		4,910,399	3
Total current liabilities					164,477,105	66			156,959,067	68			116,076,311	62
Non-current liabilities
Long-term borrowings	6(18)				16,601,551		7		7,330,788		3		13,344,060	7
Deferred income tax liabilities					501,057		-		499,268		-		502,121	-
Non-current lease liabilities					628,418		-		740,641		-		922,880	1
Other non-current liabilities					856,503		1		849,961		1		864,164	-
Total non-current liabilities					18,587,529		8		9,420,658		4		15,633,225	8
Total liabilities					183,064,634	74			166,379,725	72			131,709,536	70
Equity attributable to owners of parent
Capital	1 and	6(21)
Common stock					16,790,568		7		16,790,568		7		16,790,568	9
Preference share					2,000,000		1		2,000,000		1		-	-
Capital reserve	6(22)
Capital reserve					27,456,298	11			27,456,298	12			19,454,882	10
Retained earnings	6(23)
Legal reserve					6,021,073		2		6,021,073		3		5,274,872	3
Special reserve					2,602,682		1		2,602,682		1		4,124,936	2
Unappropriated earnings					15,680,926		6		14,022,230		6		12,620,617	7
Other equity interest
Other equity interest	6(24)		(		5,196,427) (		2) (		5,420,694) (		2) (		2,289,006) (	1)
Total equity attributable to owners of
parent					65,355,120	26			63,472,157	28			55,976,869	30
Non-controlling interest					501,933		-		494,938		-		477,730	-
Total equity					65,857,053	26			63,967,095	28			56,454,599	30
Significant contingent liabilities and	7(3) and 9
unrecognized contract commitments
TOTAL LIABILITIES AND
EQUITY				$	248,921,687	100		$	230,346,820	100		$	188,164,135	100

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 THREE MONTHS ENDED MARCH 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT EARNINGS PER SHARE DATA) (REVIEWED, NOT AUDITED)

				Three	months ended	months ended	months ended	March 31,
				2020				2019
Items	Notes			Amount	%			Amount	%
Operating revenue	6(25) and 7(3)		$	131,044,575	100		$	111,831,933	100
Operating costs	6(8) and 7(3)	(		125,771,697) (		96) (		106,858,358) (	95)
Gross profit				5,272,878		4		4,973,575	5
Operating expenses	6(29)(30) and 7(3)
Selling and marketing expenses		(		2,026,810) (		2) (		2,042,263) (	2)
General and administrative expenses		(		950,197) (		1) (		893,596) (	1)
Expected credit impairment gain (loss)		(		104,517)		-		26,511	-
Total operating expenses		(		3,081,524) (		3) (		2,909,348) (	3)
Operating profit				2,191,354		1		2,064,227	2
Non-operating income and expenses
Other income	6(26)			51,143		-		65,227	-
Other gains and losses	6(27)			224,415		-		149,702	-
Finance costs	6(28)	(		585,911)		- (		630,819) (	1)
Share of profit of associates and joint
ventures accounted for using the equity
method				124,762		-		6,443	-
Total non-operating income and
expenses		(		185,591)		- (		409,447) (	1)
Income before income tax				2,005,763		1		1,654,780	1
Income tax expense	6(31)	(		339,576)		- (		341,927)	-
Consolidated net income			$	1,666,187		1	$	1,312,853	1

(Continued)

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WPG HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE MONTHS ENDED MARCH 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT EARNINGS PER SHARE DATA) (REVIEWED, NOT AUDITED)

Items	Threemonths endedMarch31,	Threemonths endedMarch31,	Threemonths endedMarch31,
	2020	2019 % Amount - $ - - - - 316,117 - 3,859 - ( 2,225) - 317,751 - $ 317,751 1 $ 1,630,604 1 $ 1,304,424 - 8,429 1 $ 1,312,853 1 $ 1,618,100 - 12,504 1 $ 1,630,604 0.99 $ 0.99 $	2019
Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss Share of other comprehensive loss of associates and joint ventures accounted for using the equity method that will not be reclassified to profit or loss Other comprehensive loss 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) income of associates and joint ventures accounted for under equity method Income tax related to components of other comprehensive income that will be reclassified to profit or loss Other comprehensive income that will be reclassified to profit or loss Total other comprehensive income 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 THREE MONTHS ENDED MARCH 31, 2020 AND 2019 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS) (REVIEWED, NOT AUDITED)

			Equity att	utable to owners o	fthe parent					Totalequity
Share Capital		Capital reserve		RetainedEarnings		Other EquityInterest		Total
Commonstock	Preference stock		Legal reserve	Special reserve	Unappropriated earnings	Exchange differences of foreign financial statements	Unrealized gains (loss) on financial assets at fair value through other comprehensive income
$16,790,568 - - - $16,790,568 $16,790,568 - - - $16,790,568	$ - - - - $ - $2,000,000 - - - $2,000,000	$19,454,882 - - - $19,454,882 $27,456,298 - - - $27,456,298	$5,274,872 - - - $5,274,872 $6,021,073 - - - $6,021,073	$4,124,936 - - - $4,124,936 $2,602,682 - - - $2,602,682	$11,316,193 1,304,424 - 1,304,424 $12,620,617 $14,022,230 1,658,696 - 1,658,696 $15,680,926	($2,596,682 ) - 313,676 313,676 ($2,283,006 ) ($5,414,694 ) - 293,355 293,355 ($5,121,339 )	($ 6,000 ) - - - ($ 6,000 ) ($ 6,000 ) - ( 69,088 ) ( 69,088 ) ($ 75,088 )	$54,358,769 1,304,424 313,676 1,618,100 $55,976,869 $63,472,157 1,658,696 224,267 1,882,963 $65,355,120	$ 465,226 8,429 4,075 12,504 $ 477,730 $ 494,938 7,491 ( 496 ) 6,995 $ 501,933	$54,823,995 1,312,853 317,751 1,630,604 $56,454,599 $63,967,095 1,666,187 223,771 1,889,958 $65,857,053

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 THREE MONTHS ENDED MARCH 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

(REVIEWED, NOT AUDITED)

Cash flows from operating activities
Income before income tax
Adjustments
Income and expenses
Depreciation
Amortization
Expected credit impairment loss (gain)
Interest expense
Net gain on financial assets or liabilities at fair value
through profit or loss
Interest income
Share of profit of associates and joint ventures
accounted for under equity method
Loss on disposal of property, plant and equipment
Gain 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
Net cash (used in) provided by operating activities

Three months ended March 31,

Notes

2020

2019

$ 2,005,763 $ 1,654,780

6(29)

184,125
178,791
6(13)(29)

14,901
4,724

104,517 (
26,511 )
6(28)

530,234
588,534
6(27)
(
2,795 ) (
15,631 )
6(26)
(
11,231 ) (
11,594 )
(
124,762 ) (
6,443 )
6(27)

11
1,827
6(27)
(
154 )
-

335,315 (
2,230 )

257,169 (
388,423 )

3,765,686
15,158,847
(
28,094 ) (
2,714 )
(
121,865 ) (
2,580,250 )
(
259 )
16
(
13,814,527 ) (
4,614,358 )
(
1,448,660 ) (
128,888 )

4,656
33,286

48,915
29,546

7,620,996
855,337

69,303 (
356 )

1,790,802 (
779,565 )
(
398,518 )
65,641

9,080(
46,620)

790,608
9,967,746
(
529,935 ) (
625,358 )
(
580,646 ) (
62,796 )

11,352
11,098

715
2,268

(
307,906)
9,292,958

(Continued)

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WPG HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

(REVIEWED, NOT AUDITED)

			Three months ended	March 31,
	Notes		2020	2019
Cash flows from investing activities
Acquisition of property, plant and equipment and intangible
assets	6(33)	( $	5,086,438 ) ( $	96,035 )
Proceeds from disposal of property, plant and equipment and
intangible assets			576	236
Increase in guarantee deposits paid		(	2,529 ) (	26,601 )
Decrease in guarantee deposits paid			3,443	7,436
Decrease in other financial assets - non-current			571,497	358,348
Decrease (increase) in other non-current assets			64,898 (	61,651 )
Acquisition of financial assets at fair value through profit or
loss - non-current		(	8,950 )	-
Proceeds from capital reduction of financial assets at fair
value through profit or loss			13,333	-
Proceeds from capital reduction of financial assets at fair
value through other comprehensive income			7,079	-
Decrease in current financial assets at amortized cost			2,234	5,624
Increase in current financial assets at amortized cost		(	113,506 ) (	3,145 )
Net cash (used in) provided by investing activities		(	4,548,363 )	184,212
Cash flows from financing activities
Principal repayment of lease liability	6(34)	(	111,737 ) (	109,224 )
Increase in short-term borrowings	6(34)		158,836,984	150,043,867
Decrease in short-term borrowings	6(34)	(	162,810,536 ) (	161,215,323 )
Increase in long-term borrowings (including current portion	6(34)
of long-term liabilities)			14,423,764	17,507,324
Decrease in long-term borrowings (including current portion	6(34)
of long-term liabilities)		(	2,971,524 ) (	17,629,367 )
Increase in short-term notes and bills payable	6(34)		10,353,011	9,613,812
Decrease in short-term notes and bills payable	6(34)	(	9,972,219 ) (	9,516,008 )
Increase in guarantee deposits received			16,063	5,610
Decrease in guarantee deposits received		(	15,876 ) (	4,783 )
Net cash provided by (used in) financing activities			7,747,930 (	11,304,092 )
Effect of exchange rate changes on cash and cash equivalents			343,293	282,968
Net increase (decrease) in cash and cash equivalents			3,234,954 (	1,543,954 )
Cash and cash equivalents at beginning of period			9,992,582	7,116,888
Cash and cash equivalents at end of period		$	13,227,536$	5,572,934

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 THREE MONTHS ENDED MARCH 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE INDICATED) (REVIEWED, NOT AUDITED)

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 March 31, 2020, the Company’s authorized capital was $25,000,000 (certain shares can

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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 reported to the Board of Directors on May 12, 2020.

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:
New Standards, Interpretations and Amendments Amendments to IAS 1 and IAS 8, ‘Disclosure initiative-definition of material’ Amendments to IFRS 3, ‘Definition of a business’ Amendments to IFRS 9, IAS 39 and IFRS 7, ‘Interest rate benchmark reform’	Effective date by International Accounting Standards Board
	January 1, 2020 January 1, 2020 January 1, 2020

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

None.

(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 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 17, ‘Insurance contracts’ Amendments to IAS 1, ‘Classification of liabilities as current or non-current’	Effective date by International Accounting Standards Board
	To be determined by International Accounting Standards Board January 1, 2021 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.

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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2019, except for the compliance statement, basis of preparation, basis of consolidation and additional policies as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement
A. The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Accounting Standards 34, ‘Interim financial reporting’ endorsed by the FSC.
B. These consolidated financial statements are to be read in conjunction with the consolidated financial statements for the year ended December 31, 2019.
(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 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 International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “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:
- The basis for preparation of consolidated financial statements are consistent with those of the year ended December 31, 2019.

~13~

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.
World Peace
Industrial Co.,
Ltd.
World Peace
Industrial Co.,
Ltd.
World Peace
Industrial Co.,
Ltd.
World Peace
Industrial Co.,
Ltd.
AECO Technology
Co., Ltd.

Ownership (%)
Name of subsidiary
Main business
activities
March 31,
2020
December 31,
2019
March 31,
2019
Description
World Peace Industrial
Co., Ltd.
Agent and sales of
electronic / electrical
components
100.00
100.00
100.00
Silicon Application
Corporation
Sales of computer
software and
electronic products
100.00
100.00
100.00
WPG Korea Co., Ltd.
Agent and sales of
electronic / electrical
components
100.00
100.00
100.00
Notes 11
and 12
WPG Electronics Ltd.
〞
100.00
100.00
100.00
Notes 11
and 12
WPG International (CI)
Limited
Holding company
100.00
100.00
100.00
Notes 11
and 12
Asian Information
Technology Inc.
Sales of electronic /
electrical components
100.00
100.00
100.00
Yosun Industrial Corp.
〞
100.00
100.00
100.00
WPG Investment Co.,
Ltd.
Investment company
100.00
100.00
100.00
Notes 11
and 12
Trigold Holdings
Limited
Holding company
60.50
60.50
60.50
Trigold Holdings
Limited
〞
0.01
0.01
0.01
World Peace
International (BVI)
Ltd.
〞
100.00
100.00
100.00
Notes 11
and 12
WPI Investment
Holding (BVI)
Company Ltd.
〞
100.00
100.00
100.00
Longview Technology
Inc.
Agent and sales of
electronic / electrical
components
100.00
100.00
100.00
Notes 11
and 12
AECO Technology Co.,
Ltd.
〞
100.00
100.00
100.00
Notes 11
and 12
Teco Enterprise
Holding (B.V.I.) Co.,
Ltd.
Investment company
100.00
100.00
100.00
Notes 11
and 12

~14~

Name of investor Teco Enterprise Holding (B.V.I.) Co., Ltd. World Peace International (BVI) Ltd. Prime Future Technology Limited World Peace International Pte. Ltd. World Peace International Pte. Ltd. World Peace International 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 Investment Holding (BVI) Company Ltd. WPI Investment Holding (BVI) Company Ltd. WPI International (Hong Kong) Limited	Name of subsidiary AECO Electronic Co., Ltd. Prime Future Technology Limited World Peace International Pte. Ltd. Genuine C&C (IndoChina) Pte., Ltd. WPG Americas Inc. World Peace International (South Asia) Pte Ltd. World Peace International (India) Pvt., Ltd. WPG C&C (Malaysia) Sdn. Bhd WPG C&C (Thailand) Co., Ltd. WPG C&C Computers And Peripheral (India) Private Limited WPI International (Hong Kong) Limited World Peace International (Asia) Limited WPG C&C Limited	Main business activities Trading of electronic / electrical products Holding company 〞 Agent and sales of electronic / electrical components 〞〞〞〞 Agent and sales of information products Agent and sales of electronic / electrical components 〞〞 Agent and sales of information products	Ownership (%) March 31, 2020 December 31, 2019 March 31, 2019 Description 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12 80.00 80.00 80.00 Notes 11 and 12 4.31 4.31 4.31 Note 2 100.00 100.00 100.00 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 3, 11 and 12 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12

~15~

Name of investor 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. Silicon Application Company Limited WPG Korea Co., Ltd. Apache Communication Inc. (B.V.I.) WPG International (CI) Limited	Name of subsidiary Main business activities AIO Components Company Limited Agent and sales of electronic / electrical components Longview Technology GC Limited Holding company Long-Think International Co., Ltd. Agent and sales of electronic / electrical components Long-Think International (Hong Kong) Limited 〞 Long-Think International (Shanghai) Limited 〞 Silicon Application (BVI) Corp. Holding company Win-Win Systems Ltd. 〞 SAC Components (South Asia) Pte. Ltd. Sales of computer software and electronic products Pernas Electronic Co., Ltd. Agent and sales of electronic / electrical components Everwiner Enterprise Co., Ltd. 〞 Silicon Application Company Limited Sales of computer software and electronic products Dstar Electronic Company Limited 〞 Apache Communication Inc. (B.V.I.) Investment company Apache Korea Corp. Sales of electronic / electrical products WPG International (Hong Kong) Limited Holding company	Ownership (%) March 31, 2020 December 31, 2019 March 31, 2019 Description 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12

~16~

Name of investor 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. WPG South Asia Pte. Ltd. WPG Malaysia Sdn. Bhd Asian Information Technology Inc. Asian Information Technology Inc.	Name of subsidiary Main business activities WPG Americas Inc. Agent and sales of electronic / electrical components WPG South Asia Pte. Ltd. Sales of electronic / electrical products WPG Cloud Service Limited General trading WPG Gain Tune Ltd. Agent for selling electronic / electrical components WPG Electronics (Hong Kong) Limited 〞 WPG China Inc. 〞 WPG China (SZ) Inc. Sales of computer software and electronic products WPG Malaysia Sdn. Bhd Agent and sales of electronic / electrical components WPG (Thailand) Co., Ltd. 〞 WPG India Electronics Pvt. Ltd. 〞 WPG Electronics (Philippines) Inc. 〞 WPG SCM Limited 〞 WPG Vietnam Co., Ltd. 〞 WPG India Electronics Pvt. Ltd. 〞 Apache Communication Inc. Sales of electronic / electrical products Henshen Electric Trading Co., Ltd. 〞	Ownership (%) March 31, 2020 December 31, 2019 March 31, 2019 Description 95.69 95.69 95.69 Note 2 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 Notes 11 and 12 100.00 100.00 100.00 Notes 5, 11 and 12 99.99 99.99 99.99 Notes 7, 11 and 12 100.00 100.00 100.00 Notes 4, 11 and 12 100.00 100.00 100.00 100.00 0.00 0.00 Notes 12 and 13 0.01 0.01 0.01 Notes 7, 11 and 12 100.00 100.00 100.00 100.00 100.00 100.00 Notes 11 and 12

~17~

Name of investor
Name of subsidiary
Asian Information
Technology Inc.
Frontek Technology
Corporation
Asian Information
Technology Inc.
Fame Hall International
Co., Ltd.
Frontek Technology
Corporation
Frontek International
Limited
Fame Hall
International Co.,
Ltd.
AIT Japan Inc.
Frontek International
Limited
Gather Technology
Incorporation
Limited
Yosun Industrial
Corp.
Sertek Incorporated
Yosun Industrial
Corp.
Suntop Investments
Limited
Yosun Industrial
Corp.
Richpower Electronic
Devices Co., Ltd.
Richpower
Electronic Devices
Co., Ltd.
Richpower Electronic
Devices Co., Limited
Richpower
Electronic Devices
Co., Ltd.
Richpower Electronic
Devices Pte., Ltd.
Sertek Incorporated
Sertek Limited
Suntop Investments
Limited
Yosun Hong Kong
Corp. Ltd.
Suntop Investments
Limited
Yosun Singapore Pte
Ltd.
Yosun Hong Kong
Corp. Ltd.
Giatek Corp. Ltd.
Yosun Hong Kong
Corp. Ltd.
Yosun South China
Corp. Ltd.
Yosun Hong Kong
Corp. Ltd.
Yosun Shanghai Corp.
Ltd.
Yosun Singapore Pte
Ltd.
Yosun India Private
Ltd.

Ownership (%)

Main business
activities
March 31,
2020
December 31,
2019
March 31,
2019
Description
Sales of electronic /
electrical products
100.00
100.00
100.00

Investment company
100.00
100.00
100.00
Notes 11
and 12
〞
100.00
100.00
100.00
Notes 11
and 12
Sales of electronic /
electrical products
100.00
100.00
100.00
Notes 11
and 12
Sales of electronic /
electrical components
100.00
100.00
100.00
Notes 9, 11
and 12
〞
100.00
100.00
100.00

Investment company
100.00
100.00
100.00

Sales of electronic /
electrical components
100.00
100.00
100.00

Sales of electronic /
electrical products
100.00
100.00
100.00
〞
100.00
100.00
100.00
Notes 11
and 12
Sales of electronic /
electrical components
100.00
100.00
100.00
Notes 11
and 12
〞
100.00
100.00
100.00

〞
100.00
100.00
100.00
Notes 11
and 12
〞
0.00
0.00
0.00
Note 6
〞
100.00
100.00
100.00
Notes 11
and 12
Warehouse
business and sales of
electronic
components

100.00
100.00
100.00
Notes 11
and 12
Sales of electronic /
electrical components
0.00
0.00
100.00
Note 11

~18~

Name of investor Trigold Holdings Limited Trigold Holding Limited Trigold (Hong Kong) Company Limited Trigold (Hong Kong) Company Limited Triglod (Hong Kong) Company Limited Trigolduo (Shanghai) Industrial Development Ltd. Genuine C&C, Inc. Genuine C&C, Inc. Genuine C&C Holding Inc. (Seychelles) Peng Yu (Shanghai) Digital Technology Co., Ltd.	Name of subsidiary Genuine C&C Inc. Trigold (Hong Kong) Company Limited Peng Yu (Shanghai) Digital Technology Co., Ltd. WPG C&C Shanghai Co., Ltd. Trigolduo (Shanghai) Industrial Development Ltd. Trigold Tongle (Shanghai) Industrial Development Ltd. Hoban Inc. Genuine C&C Holding Inc. (Seychelles) Genuine Trading (Hong Kong) Company Limited Peng Yu International Limited	Ownership (%) Main business activities March 31, 2020 December 31, 2019 March 31, 2019 Description Sales of computer and its peripherals 100.00 100.00 100.00 Holding company 100.00 100.00 100.00 Sales of electronic/ electrical products 100.00 100.00 100.00 Notes 11 and 12 〞 100.00 100.00 100.00 Children's theme park 70.00 70.00 0.00 Notes 8 and 12 〞 100.00 100.00 0.00 Notes 8 and 12 An E-commerce company which operates B2C and O2O businesses 100.00 100.00 100.00 Notes 11 and 12 Holding company 100.00 100.00 100.00 Note 12 〞 0.00 0.00 100.00 Notes 10 and 11 Sales of electronic/electrical products 100.00 100.00 100.00

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 the Company is 100%.

Note 5: Due to restriction of local regulations, the Company holds 61% ownership

~19~

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 financial statements as of March 31, 2019 were not reviewed by independent accountants since it did not meet the definition of significant subsidiaries.
Note 12: The financial statements as of March 31, 2020 were not reviewed by independent accountants since it did not meet the definition of significant subsidiaries.

Note 13: The subsidiary was established in January 2020.

B. Subsidiaries not included in the consolidated financial statements: None.
C. Adjustments for subsidiaries with different balance sheet dates: None.
D. Significant restrictions: None.
E. Subsidiaries that have non-controlling interests that are material to the Group:

As of March 31, 2020, December 31, 2019 and March 31, 2019, the non-controlling interest amounted to $501,933, $494,938 and $477,730, respectively. The information on non-controlling interest and respective subsidiaries is as follows:

Name of subsidiary Trigold Holdings Limited and its subsidiaries (Note)	Principal place of business Taiwan		Non-controlling interest	Non-controlling interest	March 31, 2019 Amount Ownership $ 438,925 39.49%
		March 31, 2020 Amount Ownership $ 458,740 39.49%	December	31, 2019 Ownership 39.49%
		Amount $ 458,740	Amount $ 448,520

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

~20~

Summarized financial information of the subsidiaries: (a) Balance sheets

Balance sheets
	Trigold Holdings Limited and its subsidiaries
	March 31, 2020	December 31, 2019	March 31, 2019
Current assets	$ 6,086,858	$ 6,471,223	$ 5,794,076
Non-current assets	349,546	351,812	274,500
Current liabilities	( 5,018,621)	( 5,420,391)	( 4,786,690)
Non-current liabilities	( 253,445)	( 260,583)	( 171,142)
Total net assets	1,164,338	1,142,061	1,110,744
Less: Non-controlling
interest	( 3,820)	( 7,126)	12
Equity attributable to
owners of the parent
company	$ 1,160,518	$ 1,134,935	$ 1,110,756

(b) Statements of comprehensive income

(c)

Trigold Holdings Limited and its subsidiaries
Three months ended March 31,
2020
2019
Revenue
$ 3,513,124
$ 3,088,253
Profit before tax
33,216
36,754
Income tax expense
(8,649)
(15,621)
Profit for the period
24,567
21,133
Other comprehensive (loss) income,
net of tax
(3,672)
8,897
Total comprehensive income
$ 20,895
$ 30,030
Total comprehensive loss attributable
to non-controlling interest
($ 3,306)
($ 12)
Dividends paid to non-controlling
interests
$-
$-
Statements of cash flows
Trigold Holdings Limited and its subsidiaries
Three months ended March 31,
2020
2019
Net cash provided by (used in)
operating activities
$ 1,032,709
($ 1,238,510)
Net cash used in investing activities
( 3,982) ( 26,096)
Net cash (used in) provided by
financing activities
( 1,013,031) 993,459
Effect of exchange rates on cash and
cash equivalents
(2,241)
11,032
Increase (decrease) in cash and cash
equivalents
13,455
(260,115)
Cash and cash equivalents, beginning
of period
394,001
911,837
Cash and cash equivalents, end of
period
$ 407,456
$ 651,722

~21~

(4) 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 comprehensive income in the period in which they arise and are recorded as retained earnings.
- iii. Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. And, the related information is disclosed accordingly.
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.

~22~

(5) 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 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 settle on a net basis or realize the asset and settle the liability simultaneously.
F. The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax

~23~

income of the interim period, and the related information is disclosed accordingly.

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 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.

~24~

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	March 31, 2020 $ 4,166 2,212,684 10,368,463 642,223 $ 13,227,536	December 31, 2019 $ 4,444 806,634 8,745,631 435,873 $ 9,992,582	March 31, 2019 $ 4,014 966,351 4,229,009 373,560 $ 5,572,934

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 mandatorily measured at fair value through profit or loss Derivatives	March 31, 2020 $ 22,547 - 6,623 29,170 5,603 $ 34,773 $ 3,313	December 31, 2019 $ 22,547 300,000 2,513 325,060 14,589 $ 339,649 $ 16,051	March 31, 2019 $ 22,547 - 3,369 25,916 3,966 $ 29,882 $ 4,169

~25~

Items Non-current items: Financial assets mandatorily measured at fair value through profit or loss Listed stocks Emerging stocks Unlisted stocks Valuation adjustment (	March 31, 2020 $ 119,257 49,605 1,441,623 1,610,485 346,391) ( $ 1,264,094	December 31, 2019 $ 110,307 49,605 1,461,216 1,621,128 305,619) ( $ 1,315,509	March 31, 2019 $ 116,311 54,011 1,379,788 1,550,110 253,615) $ 1,296,495

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

profit or loss are listed below:
	Three	months ended March 31,
	2020		2019
Financial assets mandatorily measured at
fair value through profit or loss
Equity instruments	($	49,367)	$	7,979
Derivatives		52,162		7,652
	$	2,795	$ 15,631

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	March 31, 2020
	Contract amount (notional principal) (Note) RMB 35,000 EUR 1,000 USD 9,130 USD 37,604 EUR 1,500 $ 1,922	Contract period
		2020.02.10~ 2020.06.15 2020.03.03~2020.06.24 2020.03.17~2020.04.09 2019.08.08~2020.05.28 2020.03.17~2020.04.14 2020.03.26~2020.04.15

~26~

Derivative instruments Current items: Forward foreign exchange contracts - Sell - Sell-SWAP - Buy Futures	December 31, 2019	December 31, 2019
	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

Derivative instruments Current items: Forward foreign exchange contracts - Sell - Sell-SWAP - Buy - Buy-SWAP Futures	March 31, 2019	March 31, 2019
	Contract amount (notional principal) (Note) USD 1,000 USD 19,561 USD 23,090 EUR 1,500 EUR 1,300 $ 6,300	Contract period
		2018.10.23~2019.04.05 2019.02.11~2019.04.22 2018.05.08~2019.09.27 2019.03.27~2019.04.12 2019.03.21~2019.04.12 2019.03.27~2019.04.17

Note: Expressed in thousands.

(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 March 31, 2020, December 31, 2019 and March 31, 2019, the balance of margin in the account were $13,082, $12,970 and $12,882, and the amount of excess margin were $2,112, $2,075 and $1,726, 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.

~27~

D. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(2).

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

Items Non-current items: Equity instruments Unlisted stocks Valuation adjustment (	March 31, 2020 $ 30,956 6,000) ( $ 24,956	December 31, 2019 $ 38,035 6,000) ( $ 32,035	March 31, 2019 $ 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 $24,956, $32,035 and $32,035 as at March 31, 2020, December 31, 2019 and March 31, 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 amounted to $0 for the three months ended March 31, 2020 and 2019.
C. As at March 31, 2020, December 31, 2019 and March 31, 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 $30,956, $38,035 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	March 31, 2020 $ 196,111	December 31, 2019 $ 84,055	March 31, 2019 $ 195,996

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

listed below:
Interest income	Three months ended March 31,
	2020 $ 383	2019
		$ 74

B. Details of the Group’s financial assets at amortized cost pledged to others as collateral are provided in Note 8.
C. Information relating to credit risk of financial assets at amortized cost is provided in Note

~28~

12(2).

(5) Notes and accounts receivable

		March 31,	2020		December 31, 2019 March 31, 2019	December 31, 2019 March 31, 2019	December 31, 2019 March 31, 2019	December 31, 2019 March 31, 2019	December 31, 2019 March 31, 2019
Notes receivable		$ 1,719,929			$		1,977,099 $		3,273,312
Less: Allowance for uncollectible
accounts				-	(		2)		-
		$ 1,719,929			$		1,977,097 $		3,273,312
Accounts receivable		$ 107,829,020			$	111,578,591 $			81,300,016
Less: Allowance for uncollectible
accounts		( 1,043,142)			(		922,509) (		1,174,317)
		$ 106,785,878			$	110,656,082 $			80,125,699
A. The ageing analysis of accounts receivable and notes receivable is as follows:
		March 31, 2020					December	31, 2019
		Accounts		Notes			Accounts		Notes
		receivable	receivable				receivable		receivable
Not past due	$100,170,420		$	1,701,067			$105,293,370	$	1,954,402
One month		5,314,787			18,862		4,822,076		22,629
Two months		905,463				-	472,117		68
Three months		483,134				-	193,956		-
Four months		294,603				-	68,853		-
Over four months		660,613				-	728,219		-
	$107,829,020		$	1,719,929			$111,578,591	$	1,977,099
							March 31,		2019
							Accounts		Notes
							receivable		receivable
Not past due							$ 75,619,831	$	3,261,584
One month							3,777,644		11,728
Two months							566,019		-
Three months							251,402		-
Four months							143,629		-
Over four months							941,491		-
							$ 81,300,016	$	3,273,312

The above ageing analysis was based on past month.

B. As of March 31, 2020, December 31, 2019, March 31, 2019 and January 1, 2019, the Group’s receivables (including notes receivable) arising from contracts with customers amounted to $109,548,949, $113,555,690, $84,573,328 and $99,334,976, respectively.
C. The Group has no notes and accounts receivable pledged to others as collateral.
D. As at March 31, 2020, December 31, 2019 and March 31, 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 Group’s notes receivable was

~29~

$1,719,929, $1,977,097 and $3,273,312, and accounts receivable was $106,785,878, $110,656,082 and $80,125,699, 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 March 31, 2020, December 31, 2019 and March 31, 2019, outstanding accounts receivable were as follows:

March 31, 2020

	March 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 $ 898,156 $ 898,156USD 50,000 $ 898,156 1.80%~2.25% 3,347,175 3,347,175USD $ 133,000 540,000 3,191,778 1.96%~3.07% 3,428,480 3,428,480USD 43,300 1,625,868 1.31%~3.35% $ 3,902,000 2,336,158 2,336,158USD $ 173,000 20,000 1,314,422 1.60%~2.91% 609,603 609,603USD $ 23,000 1,474,300 446,148 0.94%~3.12% 377,789 377,789USD 39,000 66,408 2.62%~2.64% 2,453,085 2,453,085USD 140,500 1,622,747 2.23%~3.51% 20,956 20,956USD 3,250 11,031 2.52%~2.59% 3,184,475 3,184,475$ 9,800,000 554,602 1.91%~3.02% 366,371 366,371USD 44,900 - - 115,998 115,998USD $ 19,000 400,000 8,602 2.48% 184,615 184,615USD 25,600 130,749 2.48%~3.18% 3,575,350 3,575,350USD 245,000 2,129,941 2.06%~3.41% 17,874 17,874USD 3,000 - -	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

~30~

March 31, 2020

	March 31, 2020
Purchaser of accounts receivable Hang Seng Bank KGI Bank Bank of Taiwan	Accounts receivable transferred Amount derecognized Facilities (In thousands) Amount advanced Interest rate of amount advanced $ 3,254,644 $ 3,254,644USD 130,000 $ 2,979,116 1.56%~2.67% 384,723 384,723$ 1,350,000 - - 2,683 2,683USD 14,000 2,683 2.32%~3.01%	Pledged assets
		None Note 14 Note 15

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 29,242 thousand and $390,200 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 39,000 thousand that were pledged to others as collateral.
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 220,000 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.

~31~

December 31, 2019

	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 $ 1,060,966 2.72%~3.45% 3,885,859 3,885,859USD $ 133,000 540,000 3,583,671 2.60%~3.70% 1,944,442 1,944,442USD 43,300 1,166,525 2.05%~3.49% $ 3,202,000 2,943,332 2,943,332USD $ 173,000 20,000 1,683,767 2.54%~3.39% 782,948 782,948USD 21,000 500,377 1.11%~3.35% $ 1,474,300 478,727 478,727USD 39,000 374 2.95% 2,830,538 2,830,538USD 140,500 1,625,824 2.10%~3.71% 35,042 35,042USD 4,520 28,749 2.59%~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 25,600 205,263 2.57%~3.03% 4,958,326 4,958,326USD 294,000 2,965,357 2.45%~3.67% 27,094 27,094USD 3,000 20,100 2.75%~2.77% 96,565 96,565USD 130,000 - - 434,446 434,446$ 1,350,000 - - 23,408 23,408USD 14,000 $ 23,408 2.78%~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.
Note 7: The Group has signed commercial papers amounting to USD 122,850 thousand that

~32~

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.

March 31, 2019

	March 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	Accounts receivable transferred Amount derecognized Facilities (In thousands) Amount advanced Interest rate of amount advanced $ 767,477 $ 767,477USD 50,000 $ 767,477 3.25%~3.45% 3,503,270 3,503,270USD $ 159,000 540,000 2,913,593 3.35%~3.78% 2,489,686 2,489,686USD 69,800 1,192,004 2.99%~3.49% $ 2,527,000 2,674,004 2,674,004USD $ 181,000 20,000 2,016,891 1.30%~3.72% 905,520 905,520USD $ 20,000 1,474,300 727,809 3.11%~3.35% 591,509 591,509USD 45,000 90,441 3.57%~3.71% 2,210,216 2,210,216USD 84,500 859,167 3.01%~4.46% 42,008 42,008USD 4,520 - - 4,090,463 4,090,463$ 9,800,000 1,068,175 3.06%~3.55% 852,838 852,838USD 73,900 599,865 2.70%~3.42%	Pledged assets
		Note 1 Note 2 Note 3 Note 4 Note 5 Note 6 Note 7 None Note 8 Note 9

~33~

March 31, 2019

	March 31, 2019
Purchaser of accounts receivable Far Eastern International Bank Chang Hwa Bank DBS Bank Taiwan Cooperative Bank Hang Seng Bank KGI Bank ANZ Bank Bank of Taiwan	Accounts receivable transferred Amount derecognized Facilities (In thousands) Amount advanced Interest rate of amount advanced $ 79,698 $ 79,698USD $ 19,000 400,000 $ 26,070 3.26%~3.59% 386,434 386,434USD 32,200 115,420 2.42%~3.46% 4,443,291 4,443,291USD 237,500 2,721,104 1.97%~3.89% - -USD 3,000 - 0%~0% 1,261,428 1,261,428USD 128,000 1,116,638 3.43%~3.52% 525,316 525,316$ 2,150,000 109,757 3.31%~3.51% 686,828 686,828USD 49,000 686,828 3.11%~3.14% 62,417 62,417USD 14,000 62,417 3.22%~3.31%	Pledged assets
		Note 10 Note 11 Note 12 Note 13 Note 14 Note 15 None 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 159,900 thousand and $640,000 that were pledged to others as collateral.
Note 3: The Group has signed commercial papers amounting to USD 44,780 thousand and $252,700 that were pledged to others as collateral.
Note 4: The Group has signed commercial papers amounting to USD 181,000 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 45,000 thousand that were pledged to others as collateral.
Note 7: The Group has signed commercial papers amounting to USD 84,150 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 71,500 thousand and $550,000 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 50,200 thousand that were pledged to others as collateral.
Note 12: The Group has signed commercial papers amounting to USD 217,500 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

~34~

were pledged to others as collateral.

Note 15: The Group has signed commercial papers amounting to $890,000 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

Other receivables
		March 31, 2020	December 31, 2019	March 31, 2019
Retention amount of factoring
accounts receivable	$ 9,575,882		$ 10,938,791	$ 10,498,747
VAT refund		341,185	251,634	262,132
Others		1,633,652	238,550	351,551
	$ 11,550,719		$ 11,428,975	$ 11,112,430
Inventories
			March 31, 2020
			Allowance
		Cost	for valuation	Book value
Inventories	$	77,063,341	($ 1,366,600)	$ 75,696,741
Inventories in transit		5,839,423	-	5,839,423
	$	82,902,764	($ 1,366,600)	$ 81,536,164
			December 31, 2019
			Allowance
		Cost	for valuation	Book value
Inventories	$	63,931,568	($ 1,078,439)	$ 62,853,129
Inventories in transit		4,868,508	-	4,868,508
	$	68,800,076	($ 1,078,439)	$ 67,721,637
			March 31, 2019
			Allowance
		Cost	for valuation	Book value
Inventories	$	66,861,039	($ 979,637)	$ 65,881,402
Inventories in transit		3,505,923	-	3,505,923
	$	70,366,962	($ 979,637)	$ 69,387,325
The cost of inventories recognized as expense for the period:
			Three months ended March 31,
			2020	2019
Cost of goods sold		$	125,487,532	$ 106,751,612
Loss on price decline in inventory			283,811	106,639
Loss on physical inventory			354	107
Cost of goods sold		$	125,771,697	$ 106,858,358

(8) Inventories

~35~

(9) Investments accounted for under the equity method

A. Details of investments accounted for under the equity method:

Investee company WT Microelectronics Co., Ltd. (WT) ChainPower Technology Corp. Sunrise Technology Co., Ltd. Eesource Corp. 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	March 31, 2020 $ 8,138,712 171,016 57,018 68,975 74,947 31,286 39,735 24,317 38,778 70,470 12,352 $ 8,727,606	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	March 31, 2019 $ - 175,920 60,481 73,218 85,318 31,131 39,259 31,330 45,968 72,211 13,044 $ 627,880

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

Company Principal place Shareholding ratio Nature of Method of name of business March 31, 2020 March 31, 2019 relationship measurement WT Taiwan 29.9% - Holding at least 20% of the voting rights Equity method The summarised financial information of the associate that is material to the Group is a follows: Balance sheet WT March 31, 2020 Current assets $ 104,407,879 Non-current assets 5,040,587 Current liabilities ( 84,782,480) Non-current liabilities (2,184,979) Total net assets $ 22,481,007 Share in associate’s net assets $ 6,721,821 Goodwill (Note) 1,416,891 Carrying amount of the associate $ 8,138,712	Nature of relationship	Method of measurement

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

Note: In February 2020, the Group held 29.9% equity interest in WT and has significant influence over it after acquiring 177,110 thousand common stocks at a price of

~36~

$45.8 (in dollars) per share. As of March 31, 2020, the identification in relation to the difference between the cost of acquisition and the share of the fair value of the associate’s identifiable assets and liabilities acquired has not yet been completed. Therefore, the difference between the cost of acquisition and the net equity of the investee was recognised under goodwill.

For March 31, 2019 and December 31, 2019: None.

Statement of comprehensive income

Statement of comprehensive income
Revenue Profit for the period from continuing operations Other comprehensive loss, net of tax ( Total comprehensive income for the period Dividends received from associates	WT Three months ended March 31, 2020
	$ 77,475,659 616,107 11,718) $ 604,389 $-

For the three months ended March 31, 2019: None.

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 March 31, 2020, December 31, 2019 and March 31, 2019, the carrying amount of the Group’s individually immaterial associates amounted to $588,894, $586,142 and $627,880, respectively.

$627,880, respectively.
Profit for the year from continuing operations Other comprehensive income - net of tax Total comprehensive income	Three months ended March 31, 2020 2019 $ 1,966 $ 6,444 787 3,859 $ 2,753 $ 10,303
	2020 $ 1,966 787 $ 2,753

D. There was no impairment on investments accounted for using equity method for the three months ended March 31, 2020 and 2019.
E. Except for WT which was accounted for based on its finanical statements which were reviewed by independent accountants, the other investments accounted for using the equity method as of March 31, 2020 and 2019 and investment income (loss) for the three months ended March 31, 2020 and 2019 were recognised based on their financial statements which were not reviewed by independent accountants.

~37~

(10) Property, plant and equipment

(10)Property, plant and equipment
Land Buildings and structures Transportation equipment Office equipment Leasehold improvements Others At January 1, 2020 Cost $ 2,294,712 $2,080,861 $ 12,499 $ 433,590 $ 640,775 $ 443,395 Accumulated depreciation - ( 629,659) ( 10,935) ( 354,723) ( 385,116) ( 188,315) Accumulated impairment ( 1,582) ( 10,765) - - - - $ 2,293,130 $1,440,437 $ 1,564 $ 78,867 $ 255,659 $ 255,080 Three months ended March 31, 2020 Opening net book amount $ 2,293,130 $1,440,437 $ 1,564 $ 78,867 $ 255,659 $ 255,080 Additions - 575 3,074 3,947 710 7,112 Disposals - ( 581) - ( 6) - - Depreciation charge - ( 12,984) ( 356) ( 9,851) ( 29,197) ( 10,358) Effect due to changes in exchange rates ( 694) ( 9,775) 1 ( 67) 721 1,392 Closing net book amount $ 2,292,436 $1,417,672 $ 4,283 $ 72,890 $ 227,893 $ 253,226 At March 31, 2020 Cost $ 2,294,018 $2,068,205 $ 15,583 $ 435,359 $ 641,758 $ 451,710 Accumulated depreciation - ( 639,768) ( 11,300) ( 362,469) ( 413,865) ( 198,484) Accumulated impairment ( 1,582) ( 10,765) - - - - $ 2,292,436 $1,417,672 $ 4,283 $ 72,890 $ 227,893 $ 253,226	Construction in progress and equipment to be tested Total $ 1,410,680 $ 7,316,512 - ( 1,568,748) - ( 12,347) $ 1,410,680 $ 5,735,417 $ 1,410,680 $ 5,735,417 4,942,367 4,957,785 - ( 587) - ( 62,746) - ( 8,422) $ 6,353,047 $10,621,447 $ 6,353,047 $12,259,680 - ( 1,625,886) - ( 12,347) $ 6,353,047 $10,621,447
Opening net book amount Additions Disposals Depreciation charge Effect due to changes in exchange rates ( Closing net book amount At March 31, 2020 Cost Accumulated depreciation Accumulated impairment (

(10)Property, plant and equipment

Land
Buildings
and
structures
Transportation
equipment
Office
equipment
Leasehold
improvements
Others

At January 1, 2020

Cost
$ 2,294,712 $2,080,861 $ 12,499 $ 433,590 $ 640,775 $ 443,395
Accumulated depreciation
- ( 629,659) ( 10,935) ( 354,723) ( 385,116) ( 188,315)
Accumulated impairment
( 1,582)
( 10,765)
-
-
-
-

$ 2,293,130
$1,440,437
$ 1,564
$ 78,867
$ 255,659
$ 255,080

Three months ended March 31, 2020

Opening net book amount
$ 2,293,130 $1,440,437 $ 1,564 $ 78,867 $ 255,659 $ 255,080
Additions
- 575 3,074 3,947 710 7,112
Disposals
- ( 581) - ( 6) - -
Depreciation charge
- ( 12,984) ( 356) ( 9,851) ( 29,197) ( 10,358)
Effect due to changes in
exchange rates
( 694)
( 9,775)
1
( 67)
721
1,392

Closing net book amount
$ 2,292,436
$1,417,672
$ 4,283
$ 72,890
$ 227,893
$ 253,226

At March 31, 2020

Cost
$ 2,294,018 $2,068,205 $ 15,583 $ 435,359 $ 641,758 $ 451,710
Accumulated depreciation
- ( 639,768) ( 11,300) ( 362,469) ( 413,865) ( 198,484)
Accumulated impairment
( 1,582)
( 10,765)
-
-
-
-

$ 2,292,436
$1,417,672
$ 4,283
$ 72,890
$ 227,893
$ 253,226

Construction in
progress and
equipment to
be tested
Total

$ 1,410,680 $ 7,316,512
- ( 1,568,748)
-
( 12,347)
$ 1,410,680
$ 5,735,417

$ 1,410,680 $ 5,735,417
4,942,367 4,957,785
- ( 587)
- ( 62,746)
-
( 8,422)
$ 6,353,047
$10,621,447

$ 6,353,047 $12,259,680
- ( 1,625,886)
-
( 12,347)
$ 6,353,047
$10,621,447

Opening net book amount

Additions

Disposals

Depreciation charge

Effect due to changes in
exchange rates
(
Closing net book amount

At March 31, 2020

Cost

Accumulated depreciation

Accumulated impairment
(

~38~

Land Buildings and structures Transportation equipment Office equipment Leasehold improvements Others At January 1, 2019 Cost $ 2,296,752 $2,122,448 $ 19,043 $ 449,661 $ 633,249 $ 438,681 Accumulated depreciation - ( 590,873) ( 15,215) ( 348,475) ( 274,296) ( 169,714) Accumulated impairment ( 1,582) ( 10,765) - - - - $ 2,295,170 $1,520,810 $ 3,828 $ 101,186 $ 358,953 $ 268,967 Three months ended March 31, 2019 Opening net book amount $ 2,295,170 $1,520,810 $ 3,828 $ 101,186 $ 358,953 $ 268,967 Additions - 761 434 5,094 1,754 2,128 Disposals - ( 180) ( 120) ( 458) ( 44) ( 5) Depreciation charge - ( 13,203) ( 597) ( 10,383) ( 29,559) ( 9,300) Effect due to changes in exchange rates 298 12,448 8 439 2,164 1,081 Closing net book amount $ 2,295,468 $1,520,636 $ 3,553 $ 95,878 $ 333,268 $ 262,871 At March 31, 2019 Cost $ 2,297,050 $2,132,176 $ 17,229 $ 451,681 $ 639,678 $ 442,573 Accumulated depreciation - ( 600,775) ( 13,676) ( 355,803) ( 306,410) ( 179,702) Accumulated impairment ( 1,582) ( 10,765) - - - - $ 2,295,468 $1,520,636 $ 3,553 $ 95,878 $ 333,268 $ 262,871	Construction in progress and equipment to be tested Total $ 1,152,522 $7,112,356 - ( 1,398,573) - ( 12,347) $ 1,152,522 $5,701,436 $ 1,152,522 $5,701,436 84,563 94,734 - ( 807) - ( 63,042) - 16,438 $ 1,237,085 $5,748,759 $ 1,237,085 $7,217,472 - ( 1,456,366) - ( 12,347) $ 1,237,085 $5,748,759
Opening net book amount Additions Disposals Depreciation charge Effect due to changes in exchange rates Closing net book amount At March 31, 2019 Cost Accumulated depreciation Accumulated impairment (

Land
Buildings
and
structures
Transportation
equipment
Office
equipment
Leasehold
improvements
Others

At January 1, 2019

Cost
$ 2,296,752 $2,122,448 $ 19,043 $ 449,661 $ 633,249 $ 438,681
Accumulated depreciation
- ( 590,873) ( 15,215) ( 348,475) ( 274,296) ( 169,714)
Accumulated impairment
( 1,582)
( 10,765)
-
-
-
-

$ 2,295,170
$1,520,810
$ 3,828
$ 101,186
$ 358,953
$ 268,967

Three months ended March 31, 2019

Opening net book amount
$ 2,295,170 $1,520,810 $ 3,828 $ 101,186 $ 358,953 $ 268,967
Additions
- 761 434 5,094 1,754 2,128
Disposals
- ( 180) ( 120) ( 458) ( 44) ( 5)
Depreciation charge
- ( 13,203) ( 597) ( 10,383) ( 29,559) ( 9,300)
Effect due to changes in
exchange rates
298
12,448
8
439
2,164
1,081

Closing net book amount
$ 2,295,468
$1,520,636
$ 3,553
$ 95,878
$ 333,268
$ 262,871

At March 31, 2019

Cost
$ 2,297,050 $2,132,176 $ 17,229 $ 451,681 $ 639,678 $ 442,573
Accumulated depreciation
- ( 600,775) ( 13,676) ( 355,803) ( 306,410) ( 179,702)
Accumulated impairment
( 1,582)
( 10,765)
-
-
-
-

$ 2,295,468
$1,520,636
$ 3,553
$ 95,878
$ 333,268
$ 262,871

Construction in
progress and
equipment to
be tested
Total

$ 1,152,522 $7,112,356
- ( 1,398,573)
-
( 12,347)
$ 1,152,522
$5,701,436

$ 1,152,522 $5,701,436
84,563 94,734
- ( 807)
- ( 63,042)
-
16,438
$ 1,237,085
$5,748,759

$ 1,237,085 $7,217,472
- ( 1,456,366)
-
( 12,347)
$ 1,237,085
$5,748,759

Opening net book amount

Additions

Disposals

Depreciation charge

Effect due to changes in
exchange rates

Closing net book amount

At March 31, 2019

Cost

Accumulated depreciation

Accumulated impairment
(

~39~

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	Three months ended March 31, 2020 2019 $ 712 $ 3,073 1.07%~1.09% 1.02%~1.03%
	2020 $ 712 1.07%~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 8 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
At January 1, 2020
Cost	$ 1,424,648	$ 88,054	$ 27,594	$ 22,580	$1,562,876
Accumulated
depreciation	( 384,410)	( 29,555)	( 8,424) ( 11,408)		( 433,797)
Accumulated impairment	-	-	-	-	-
	$ 1,040,238	$ 58,499	$ 19,170	$ 11,172	$1,129,079
Three months ended March 31, 2020
Opening net book
amount	$ 1,040,238	$ 58,499	$ 19,170	$ 11,172	$1,129,079
Additions	3,195	2,806	-	44	6,045
Disposals	( 869)	( 1,001)	- ( 124)		( 1,994)
Depreciation charge	( 101,238)	( 9,574)	( 2,109) ( 2,944)		( 115,865)
Effect due to changes in
exchange rates	(587)	(67)	54	12	(588)
Closing net book amount	$ 940,739	$ 50,663	$ 17,115	$ 8,160	$1,016,677

At March 31, 2020
Cost	$ 1,420,806	$ 86,486	$ 27,675	$ 21,818	$1,556,785
Accumulated
depreciation	( 480,067)	( 35,823)	( 10,560) ( 13,658)		( 540,108)
Accumulated impairment	-	-	-	-	-
	$ 940,739	$ 50,663	$ 17,115	$ 8,160	$1,016,677

~40~

		Transportation	Transportation	Office
	Buildings and	equipment		equipment		Other
	structures	(Business vehicles)		(Photocopiers)		equipment		Total
At January 1, 2019
Cost	$ -	$	-	$	-	$	-	$	-
Accumulated
depreciation	-		-		-		-		-
Accumulated impairment	-		-		-		-		-
	$-	$	-	$	-	$	-	$	-
Three months ended March 31, 2019
Opening net book
amount	$ -	$	-	$	-	$	-	$	-
Modified retrospective
adjustments under
IFRS 16	1,322,633		65,891	26,570		20,708		1,435,802
Additions	8,419		-		-	103		8,522
Depreciation charge	( 98,601)	(	6,604)	( 2,093)		( 2,642)		( 109,940)
Effect due to changes in
exchange rates	(5,651)		102		33		37	(5,479)
Closing net book amount	$ 1,226,800	$	59,389	$ 24,510		$ 18,206		$1,328,905

At March 31, 2019
Cost	$ 1,325,036	$	65,992	$ 26,603		$ 20,848		$1,438,479
Accumulated
depreciation	( 98,236)	(	6,603)	( 2,093)		( 2,642)		( 109,574)
Accumulated impairment	-		-		-		-		-
	$ 1,226,800	$	59,389	$ 24,510		$ 18,206		$1,328,905

C. For the three months ended March 31, 2020 and 2019, the additions to right-of-use assets were $6,045 and $8,522, 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	Three months ended March 31, 2020 2019 $ 9,995 $ 7,423 8,507 8,104 408 413
	2020 $ 9,995 8,507 408

E. For the three months ended March 31, 2020 and 2019, the Group’s total cash outflow for leases were $130,647 and $125,164, respectively.

~41~

(12) Investment property

Investment property
			Buildings and
		Land	structures	Total
At January 1, 2020
Cost	$	338,690	$ 929,231	$ 1,267,921
Accumulated depreciation		-	( 207,806)	( 207,806)
	$	338,690	$ 721,425	$ 1,060,115
Three months ended March 31, 2020
Opening net book amount	$	338,690	$ 721,425	$ 1,060,115
Depreciation charge		-	( 5,514)	( 5,514)
Effect due to changes in
exchange rates		-	( 7,524)	( 7,524)
Closing net book amount	$	338,690	$ 708,387	$ 1,047,077
At March 31, 2020
Cost	$	338,690	$ 919,789	$ 1,258,479
Accumulated depreciation		-	( 211,402)	( 211,402)
	$	338,690	$ 708,387	$ 1,047,077
			Buildings and
		Land	structures	Total
At January 1, 2019
Cost	$	338,690	$ 960,770	$ 1,299,460
Accumulated depreciation		-	( 192,214)	( 192,214)
	$	338,690	$ 768,556	$ 1,107,246
Three months ended March 31, 2019
Opening net book amount	$	338,690	$ 768,556	$ 1,107,246
Additions		-	126	126
Depreciation charge		-	( 5,809)	( 5,809)
Effect due to changes in
exchange rates		-	17,747	17,747
Closing net book amount	$	338,690	$ 780,620	$ 1,119,310
At March 31, 2019
Cost	$	338,690	$ 981,167	$ 1,319,857
Accumulated depreciation		-	( 200,547)	( 200,547)
	$	338,690	$ 780,620	$ 1,119,310
A. Rental income from investment property and direct operating expenses arising from the
investment property are shown below:
			Three months ended March 31,
			2020	2019
Rental revenue from investment property			$ 8,895	$ 16,298

~42~

	Three months ended March 31,
	2020 2019
	Direct operating expenses arising from the
	investment property that generated rental
	income during the period $ 3,881 $ 4,880

	Direct operating expenses arising from the
	investment property that did not generate
	rental income during the period $ 1,633 $ 928
B.	The fair value of the investment property held by the Group as of March 31, 2020,
	December 31, 2019 and March 31, 2019 was $1,872,207, $1,532,640 and $1,974,702,
	respectively. The fair value as of March 31, 2020, December 31, 2019 and March 31,
	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.
	Comparsion method is categorized within Level 3 in the fair value hierarchy. Valuations
	were made using the income approach with key assumptions as follows:

Discount rate Growth rate Gross margin	March 31, 2020 2.35%~2.75% 0%~1% 1.2%~3.2%	December 31, 2019 2.35%~2.75% 0%~1% 1.2%~3.2%	March 31, 2019
			2.35%~2.75% 0%~1% 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 At January 1, 2020 Cost $ 287,532 $ 250,053 Accumulated amortization and impairment (287,532) (217,795) ( $- $ 32,258 Three months ended March 31, 2020 Opening net book amount $ - $ 32,258 Additions - acquired separately - 128,180 Amortization charge - ( 14,901) Effect due to changes in exchange rates - (164) Closing net book amount $- $ 145,373 At March 31, 2020 Cost $ 289,766 $ 377,355 Accumulated amortization and impairment (289,766) (231,982) ( $- $ 145,373	Goodwill $ 5,658,880 122,345) ( $ 5,536,535 $ 5,536,535 - - 1,632 $ 5,538,167 $ 5,661,513 123,346) ( $ 5,538,167	Others Total $ 64,820 $6,261,285 64,762) (692,434) $ 58 $5,568,851 $ 58 $5,568,851 - 128,180 - ( 14,901) 1 1,469 $ 59 $5,683,599 $ 65,313 $6,393,947 65,254) (710,348) $ 59 $5,683,599
Opening net book amount Additions - acquired separately Amortization charge Effect due to changes in exchange rates Closing net book amount At March 31, 2020 Cost Accumulated amortization and impairment (

~43~

At January 1, 2019 Cost Accumulated amortization and impairment ( Three months ended March 31,	Operating right Software $ 294,234 $ 235,175 294,234) (208,732) ( $- $ 26,443 2019 $ - $ 26,443 - 1,175 - ( 1,256) - ( 4,724) - 305 $- $ 21,943 $ 295,191 $ 233,413 295,191) (211,470) ( $- $ 21,943	Goodwill $ 5,666,777 125,345) ( $ 5,541,432 $ 5,541,432 - - - 699 $ 5,542,131 $ 5,667,905 125,774) ( $ 5,542,131	Others Total $ 66,299 $6,262,485 66,240) (694,551) $ 59 $5,567,934 $ 59 $5,567,934 - 1,175 - ( 1,256) - ( 4,724) 1 1,005 $ 60 $5,564,134 $ 66,510 $6,263,019 66,450) (698,885) $ 60 $5,564,134
Opening net book amount Additions - acquired separately Disposals Amortization charge Effect due to changes in exchange rates Closing net book amount At March 31, 2019 Cost Accumulated amortization and impairment (

The details of amortization charge are as follows:

The details of amortization charge are as follows:
Selling and marketing expenses General and administrative expenses	Three months ended March 31, 2020 2019 $ 913 $ 1,153 13,988 3,571 $ 14,901 $ 4,724
	2020 $ 913 13,988 $ 14,901

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

Yosun subgroup World Peace subgroup Others	March 31, 2020 $ 3,646,134 1,647,750 244,283 $ 5,538,167	December 31, 2019 $ 3,644,792 1,647,459 244,284 $ 5,536,535	March 31, 2019 $ 3,649,393 1,648,455 244,283 $ 5,542,131

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 industry; the assumption used for discount rate is the weighted average capital cost of the Group. As of March 31, 2020, December 31, 2019 and March 31, 2019, the key valuations used for pre-tax discount rate were $5.73%~6.44%, 6.06%~7.13% and 6.40%, respectively.

~44~

C. There is no impairment loss on intangible assets.

(14) Prepayments for investments

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

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 (	March 31, 2020 $ 944,891 938,969) ( $ 5,922	December 31, 2019 $ 1,026,348 946,395) ( $ 79,953	March 31, 2019 $ 988,137 911,678) $ 76,459

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	( 14,374)	( 6,097)
Write-off of bad debts	-	( 17,858)
Transferred from accounts receivable	371	-
Effect due to changes in exchange rates	6,577	7,841
At March 31	$ 938,969	$ 911,678

(16) Short-term borrowings

Type of borrowings Loans for overseas purchases Short-term loans Annual interest rates	March 31, 2020 $ 44,244,869 20,673,193 $ 64,918,062 0.95%~4.59%	December 31, 2019 $ 20,737,137 48,154,477 $ 68,891,614 0.96%~9.75%	March 31, 2019 $ 10,638,965 35,406,170 $ 46,045,135 0.94%~9.30%

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

~45~

(17) Short-term notes and bills payable

Commercial papers payable Less: Unamortized discount ( Annual interest rates	March 31, 2020 $ 5,940,000 3,784) ( $ 5,936,216 0.5%~1.16%	December 31, 2019 $ 5,560,000 4,576) ( $ 5,555,424 0.50%~1.16%	March 31, 2019 $ 5,060,000 5,169) $ 5,054,831 0.49%~1.17%

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	March 31, 2020	December 31, 2019		March 31, 2019
Secured bank borrowings	2012.01.02~
(Note 1~Note 3)	2027.01.02	$ 4,927,173	$	16,341	$ 419,248
Unsecured bank	2016.10.03~
borrowings (Note 4~Note	2023.03.10
8 and Note 10~Note 13)		12,076,000		5,542,428	6,046,555
Commercial paper payable	2018.11.09~
(Note 9)	2021.11.09	7,300,000		7,300,000	7,300,000
		24,303,173		12,858,769	13,765,803
Less: Discount on long-term borrowings		( 17,560)	(	25,396)	( 30,883)
Less: Current portion of long-term
borrowings (shown	as ‘other current
liabilities’)		(7,684,062)	(	5,502,585)	(390,860)
		$ 16,601,551	$	7,330,788	$ 13,344,060
Interest rate range		1.15%~3.54%		0.68%~3.16%	1.25%~3.80%

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

Note 1: (a) The Company had entered into a long-term agreement for fifteen years with a financial institution. The pledged assets are the land and building of Linkou warehouse. The principal should be repaid in equal monthly installments starting from January 2015.
(b) In November 2014, the lending financial institution agreed to grant a grace period of one year, therefore the start of the repayment of the principal has been moved to January 2016, which will be in equal monthly installments.
(c) The interest rate is the index interest rate plus 0.21% from the borrowing day to January 2, 2013, plus 0.25% from January 2, 2013, plus 0.25% from January 2, 2014, plus 0.35% from January 2, 2015, plus 0.42% from January 2, 2016, plus 0.44% from January 2, 2017, plus 0.45% from January 2, 2018 and plus 1.5% from January 2, 2019. The Company has settled all payments on September 24, 2019.
Note 2: (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

~46~

grace period of three years. The principal should 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, plus 0.45% from March 31, 2022.
Note 3: 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 $70,352 and $63,864, 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 4: (a) 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.
(b) 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 5: Asian Information Technology Inc., the Company’s subsidiary, and Frontek Technology Corporation, an indirect 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. has settled all payments on June 10, 2019.

Note 6: Frontek Technology Corporation, an indirect subsidiary, entered into a one-year borrowing contract with Yuanta Commercial Bank in March 2020 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.
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

~47~

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) 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.

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

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 on October 16, 2018. WPI has to roll over commercial papers during the contract period, up to 2021, with the maximum maturity period of 6 months for each issue as stipulated in the agreement. The terms and conditions of the contract are as follows:

~48~

(a) Contract term: Within three years from the first drawdown.
(b) Facility and drawdown: During the term of agreement, WPI can roll over each credit facility within the total revolving credit facility of $8,000,000 at 60, 90, 120, 180 days maturity or the days agreed by the lead bank and WPI with a limit of 180 days and each maturity date shall be within the contract term.
(c) Repayment: 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 contract.

Note 10: World Peace Industrial Co., Ltd. (WPI), the Company’s subsidiary, had entered into a long-term loan agreement with The Bank of Tokyo-Mitsubishi UFJ on September 23, 2016. 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 $700,000. This pertains to a revolving loan facility of WPI, the Company’s subsidiary, wherein the principal amount can be renewed after the corresponding interest is paid, and payment of the existing loan can be repaid by the new loan. If the amounts equal, then the banks would not make a procedure of remittance and loan.
(c) Repayment: For each drawdown, the principal must be repaid in full at the end of each drawdown’s term. Interests shall be paid quarterly.
(d) Loan covenant: The subsidiary - WPI is required to maintain certain financial

~49~

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 200%, time interest earned ratio should not be less than 2.5, net value (net assets less intangible assets) should not be less than $10,000,000 and the ratio of liability divided by earnings before interest, taxes, depreciation and amortization (EBITDA) should not be higher than 10. 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. Demand WPI to immediately repay all drawn principals, interest payable and other related payables as specified in the contract;
iii. 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: 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 12: 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 13: 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	March 31, 2020 $ 7,684,062 4,472,589 603,432 470,487 $ 13,230,570	December 31, 2019 $ 5,502,585 4,463,062 1,027,069 454,895 $ 11,447,611	March 31, 2019 $ 390,860 4,085,785 - 433,754 $ 4,910,399

A. Under the initial application, refund liabilities were generated from sales discounts which is shown as ‘other current liabilities’.
B. Under the initial application, contract liabilities were generated from advance sales receipts which is shown as ‘other current liabilities’.

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(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) For the aforementioned pension plan, the Group recognised pension costs of $3,834 and $5,080 for the three months ended March 31, 2020 and 2019, respectively.
(c) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2021 are $17,264.
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

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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 three months ended March 31, 2020 and 2019 were $72,679 and $92,054, 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 March 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 three months ended March 31, 2020 and 2019 are as follows:

2020 2019 At January and March 31 1,679,057 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 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.

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(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.
(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.

(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.

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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:

			2020	2020	2020
	Preferred stock share premium $ 7,994,638		Recognized Treasury share changes in subsidiaries’ transaction equity $ 45,177 $ 431 2019			Changes in associates’ net equity $ 28,767

Share premium $ 19,387,285		Treasury share transaction $ 45,177		Recognized changes in subsidiaries’ equity $ 431	Changes in associates’ net equity $ 21,989

(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 April 28, 2020, the Board of Directors proposed the distribution of 2019 retained earnings and on June 28, 2019, the shareholders during their meeting resolved the distribution of 2018 retained earnings as follows:

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Legal reserve Provision for (reversal of) special reverse Cash dividends Cash dividends of preference shares	Year 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 2018 as resolved by the shareholders are the same with the amounts resolved by the Board of Directors.

E. As of May 12, 2020, the appropriation of earnings for the year ended December 31, 2019 has not yet been approved by the shareholders.

(24) Other equity items

Other equity items
			2020
	Investments at fair
	value through other
	comprehensive		Currency
	income		translation		Total
At January 1	($ 6,000)	($ 5,414,694)		($	5,420,694)
Cumulative translation
differences:
- Group	-		319,775		319,775
- Tax on Group	-	(	572)	(	572)
- Associates	(69,088)	(	25,848)	(	94,936)
At March 31	($ 75,088)	($ 5,121,339)		($	5,196,427)
			2019
	Investments at fair
	value through other
	comprehensive		Currency
	income		translation		Total
At January 1	($ 6,000)	($ 2,596,682)		($	2,602,682)
Cumulative translation
differences:
- Group	-		312,042		312,042
- Tax on Group	-	(	2,225)	(	2,225)
- Associates	-		3,859		3,859
At March 31	($ 6,000)	($ 2,283,006)		($	2,289,006)

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(25) Operating revenue

Operating revenue
Revenue from contracts with customers	Three months ended March 31, 2020 2019 $ 131,044,575 $ 111,831,933
	2020 $ 131,044,575

Disaggregation of revenue from contracts with customers

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	Three months ended March 31, 2020 2019 $ 40,808,003 $ 31,619,797 24,729,058 23,648,067 17,240,294 16,413,023 29,339,294 22,931,159 9,873,074 7,204,413 5,776,873 6,429,904 3,277,979 3,585,570 $ 131,044,575 $ 111,831,933
	2020 $ 40,808,003 24,729,058 17,240,294 29,339,294 9,873,074 5,776,873 3,277,979 $ 131,044,575

(26) Other income

Other income
	Three	months ended March 31,
	2020		2019
Interest income:
Interest income from bank deposits	$	10,848	$	11,520
Interest income from financial assets
measured at amortized cost		383		74
Total interest income		11,231		11,594
Rental revenue		10,351		17,515
Other income		29,561		36,118
	$	51,143	$	65,227
Other gains and losses
	Three	months ended March 31,
	2020		2019
Loss on disposal of property, plant and
equipment	($	11)	($	1,827)
Currency exchange gain	244,702		144,618
Gain on financial assets and liabilities at fair
value through profit or loss		2,795		15,631
Gains arising from lease modifications		154		-
Other losses	(	23,225)	(	8,720)
	$ 224,415		$ 149,702

(27) Other gains and losses

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(28) Finance costs

Finance costs
	Three	months ended March 31,
	2020		2019
Interest expense:
Bank borrowings	$ 530,946		$ 584,184
Less: Capitalization of qualifying assets	(	712) ( 3,073)
Others		55,677	49,708
	$ 585,911		$ 630,819

(29) Additional information of expenses by nature

Additional information of expenses by nature
Employee benefit expense Depreciation charges on property and equipment (including investment property and right-of-use assets) Amortization charges on intangible assets Employee benefit expense Wages and salaries Directors’ remuneration Labor and health insurance fees Pension costs Other personnel expenses	Three months ended March 31, 2020 2019 $ 1,911,151 $ 1,855,405 $ 184,125 $ 178,791 $ 14,901 $ 4,724 Three months ended March 31, 2020 2019 $ 1,665,833 $ 1,580,613 9,531 11,081 84,546 88,594 76,513 97,134 74,728 77,983 $ 1,911,151 $ 1,855,405
	2020 $ 1,665,833 9,531 84,546 76,513 74,728 $ 1,911,151

(30) Employee benefit expense

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. For the three months ended March 31, 2020 and 2019, employees’ compensation was accrued at $7,463 and $8,712, respectively; while directors’ remuneration was accrued at $8,750 and $10,500, 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, 2019, and the percentage as prescribed by the Company’s Articles of Incorporation.

For 2019, the employees’ compensation and directors’ and supervisors’ 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’ and

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supervisors’ remuneration recognised 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 recognised 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.

C. 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.

(31) Income tax

A. Income tax expense
(a) Components of income tax expense:

tax me tax expense Components of income tax expense:
Current tax Current tax on profits for the period Prior year income tax (over) underestimation ( Total current tax Deferred tax Origination of temporary differences Total deferred tax Income tax expense	Three months ended March 31, 2020 2019 $ 370,105 $ 312,495 43,580) 11,500 326,525 323,995 13,051 17,932 13,051 17,932 $ 339,576 $ 341,927
	2020 $ 370,105 43,580) 326,525 13,051 13,051 $ 339,576

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

(income) is as follows:
Currency translation differences	Three months ended March 31, 2020 2019 $ 572 $ 2,225
	2020 $ 572

B. As of May 12, 2020, the Company’s income tax returns through 2016 have been assessed and approved by the Tax Authority.

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(32) Earnings per share

Earnings per share
	Three months ended March 31,		2020
		Weighted average
		number of ordinary	Earnings per
		shares outstanding	share
	Amount after tax	(shares in thousands)	(in dollars)
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent	$ 1,658,696	1,679,057	$ 0.99

Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent	$ 1,658,696	1,679,057
Assumed conversion of all dilutive
potential ordinary shares
Employees’ compensation	-	1,051
Profit attributable to ordinary
shareholders of the parent plus assumed
conversion of all dilutive potential
ordinary shares	$ 1,658,696	1,680,108	$ 0.99
	Three months ended March 31,		2019
		Weighted average
		number of ordinary	Earnings per
		shares outstanding	share
	Amount after tax	(shares in thousands)	(in dollars)
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent	$ 1,304,424	1,679,057	$ 0.78
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent	$ 1,304,424	1,679,057
Assumed conversion of all dilutive
potential ordinary shares
Employees’ compensation	-	667
Profit attributable to ordinary
shareholders of the parent plus assumed
conversion of all dilutive potential
ordinary shares	$ 1,304,424	1,679,724	$ 0.78

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(33) Supplemental cash flow information

Partial payment of cash from investing activities

Partial payment of cash from investing activities
Acquisition of property, plant and equipment, investment property and intangible assets Add: Accounts payable at the beginning of the period Ending balance of prepayments for business facilities Less: Prepayments for business facilities at the beginning of the period ( Cash paid during the period	Three months ended March 31, 2020 2019 $ 5,085,965 $ 96,035 1,031 - 1,129 - 1,687) - $ 5,086,438 $ 96,035
	2020 $ 5,085,965 1,031 1,129 1,687) $ 5,086,438

(34) Changes in liabilities from financing activities

Short-term

borrowings

At January 1, 2020
$68,891,614
Changes in cash flow
from financing
activities
( 3,973,552)
Others
-

At March 31, 2020
$64,918,062

Short-term

borrowings

At January 1, 2019
$57,221,436
Modified retrospective
adjustments under
IFRS 16
-
Changes in cash flow
from financing
activities
( 11,171,456)
Impact of changes in
foreign exchange rate ( 4,845)

At March 31, 2019
$46,045,135

Short-term
notes and
Long-term
borrowings
Lease
Liabilities
from financing
bills payable
(Note)
liabilities
activities-gross
$5,555,424 $12,833,373 $1,157,543 $ 88,437,954
380,792 11,452,240 ( 111,737) 7,747,743
-
-
7,270
7,270
$5,936,216
$24,285,613
$1,053,076
$ 96,192,967
Short-term
notes and
Long-term
borrowings
Lease
Liabilities
from financing
bills payable
(Note)
liabilities
activities-gross
$4,957,027 $13,857,415 $ - $ 76,035,878
- - 1,435,802 1,435,802
97,804 ( 122,043) ( 109,224) ( 11,304,919)
-
( 452)
13,097
7,800
$5,054,831
$13,734,920
$1,339,675
$ 66,174,561

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 and relationship
Names of related parties	Relationship with the Group
Chain Power Technology Corp.	Investee accounted for using the equity method
Adivic Techology Co., Ltd.		〞
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		〞
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	Three months ended March 31, 2020 2019 $ 121,682 $ 126,667 66,517 40,648 $ 188,199 $ 167,315
	2020 $ 121,682 66,517 $ 188,199

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	Three months ended March 31,
	2020 $ 66,862	2019
		$ 388

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	March 31, 2020 $ 72,022 54,364 $ 126,386	December 31, 2019 $ 81,751 16,541 $ 98,292	March 31, 2019 $ 69,741 15,563 $ 85,304

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 Associates	March 31, 2020 $ 1,467	December 31, 2019 $ 1,208	March 31, 2019 $ 1,594

The above represents receivables from payments on behalf of others.

E. Payables to related parties

Accounts payable Associates	March 31, 2020 $ 69,956	December 31, 2019 $ 653	March 31, 2019 $ 45

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

March 31, 2020 December 31, 2019 March 31, 2019 Associates VITEC WPG Limited $ 68,006 $ 67,455 $ 69,345

G. Others

The Group’s donations to WPG Holding Education Foundation were $2,000 and $2,400 for the three months ended March 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	Three months ended March 31, 2020 2019 $ 88,923 $ 84,288 762 791 $ 89,685 $ 85,079
	2020 $ 88,923 762 $ 89,685

8. PLEDGED ASSETS

Pledged assets (Note 1) March 31, 2020 December 31, 2019 March 31, 2019 Purpose of Collateral Other current assets (Note 3)

-Time deposits $ 41,651 $ 41,773 $ 42,325 Security for purchases and deposits for litigation

Financial assets at fair 7,503 7,503 7,054 Security for purchases value though profit or loss - non-current (Note 2) Property, plant and equipment (including investment property) -Land 1,110,250 1,109,543 1,110,124 Long-term and short-term borrowings guarantee and security for purchases -Buildings and 〞 structures 554,058 558,234 572,660 $ 1,713,462 $ 1,717,053 $ 1,732,163

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

Note 3: Includes “financial assets at amortized cost - current”.

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS

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

(1) Contingencies

None.

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(2) Commitments

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

March 31, 2020 December 31, 2019 March 31, 2019 Property, plant and equipment and intangible assets $ 420,036 $ 5,081,991 $ 5,232,148

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

March 31, 2020 December 31, 2019 March 31, 2019 $ 796,213 $ 767,624 $ 944,933 USD 106,262,000 USD 106,583,000 USD 79,260,000

C. As of March 31, 2020, the remaining payments for the contract of non-fixed car park the Group entered into amounted to $30,400.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

None.

12. OTHERS

(1) Capital risk management

There was no significant change in the reporting period. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2019.

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(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 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	March 31, 2020 $ 1,298,867 $ 24,956 $ 13,227,536 196,111 1,719,929 106,912,264 11,552,186 178,822 828,091 $ 134,614,939 $ 3,313 $ 64,918,062 5,936,216 83,557 71,279,122 7,488,930 24,285,613 86,407 $ 174,077,907 $ 1,053,076	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 $ 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	March 31, 2019 $ 1,326,377 $ 32,035 $ 5,572,934 195,996 3,273,312 80,211,003 11,114,024 206,320 145,263 $ 100,718,852 $ 4,169 $ 46,045,135 5,054,831 65,043 54,017,286 4,517,585 13,734,920 92,333 $ 123,527,133 $ 1,339,675

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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.
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:

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March 31, 2020

	March 31, 2020	March 31, 2020
(Foreign currency: functional currency) Financial assets Monetary items USD：TWD USD：RMB USD：KRW HKD：USD SGD：USD Non-monetary items RMB：USD Financial liabilities Monetary items USD：TWD USD：RMB USD：KRW HKD：USD EUR：USD (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	Foreign currency amount (in thousands) Exchange rate $ 604,625 30.23 14,008 7.10 17,977 1,209.00 68,738 0.13 5,977 0.70 30,072 0.14 551,643 30.23 59,816 7.10 31,557 1,209.00 28,297 0.13 3,189 1.10 December 31, 2019		Book value (NTD)
			$ 18,274,802 423,397 543,357 267,942 126,901 127,955 16,673,409 1,807,937 953,797 110,301 105,547
	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	Book value (NTD)
			$ 15,052,173 557,652 933,487 239,894 143,939 14,376,435 2,208,672 743,176 153,761

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	March 31, 2019	Book value (NTD)
Foreign currency amount (in thousands) $ 537,093 11,051 17,977 4,876 68,282 31,746 461,628 81,673 31,557 3,903 4,452 33,395	Exchange rate 30.820 6.73 1,126.87 110.74 0.13 0.15 30.820 6.73 1,126.87 110.74 67.83 0.13
		$ 16,553,204 340,582 554,053 150,274 268,075 145,395 14,227,388 2,517,159 972,573 120,295 137,197 131,108

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 three months ended March 31, 2020 and 2019, amounted to $244,702 and $144,618, 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 SGD：USD Financial liabilities Monetary items USD：TWD USD：RMB USD：KRW HKD：USD EUR：USD	Three months ended March 31, 2020
		Sensitivity Analysis
	Degree of Variation 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%	Effect on Profit or Loss $ 182,748 4,234 5,434 2,679 1,269 166,734 18,079 9,538 1,103 1,055	Effect on Other Comprehensive Income
			$ - - - - - - - - - -

Three months ended March 31, 2019	Three months ended March 31, 2019	Three months ended March 31, 2019
	Sensitivity Analysis
Degree of Variation 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%	Effect on Profit or Loss $ 165,532 3,406 5,541 1,503 2,681 142,274 25,172 9,726 1,203 1,372 1,311	Effect on Other Comprehensive Income
		$ - - - - - - - - - - -

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Price risk

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 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 three months ended March 31, 2020 and 2019 would have increased/decreased by $12,922 and $13,230, 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 $250 and $320, respectively, as a result of other comprehensive income classified as equity investment at fair value thorugh 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 three months ended March 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 three months ended March 31, 2020 and 2019 would have decreased by $70,974 and $49,653, 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 their 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

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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 initial recognition.
iv. The Group adopts the assumption under IFRS 9, that is, 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 provision matrix, loss rate methodology to estimate expected credit loss under the provision matrix basis.
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 March 31, 2020, December 31, 2019 and March 31, 2019, the provision matrix and loss rate methodology are as follows:
(i) Accounts receivable from general customers:

Not past due	One month past due	Two months past due 1.41%~ 91.667% $ 735,622	Three months past due 6.46%~ 100% $ 444,683	Four months past due
	0.12%~ 71.278% $ 3,627,739			19.68%~ 100% $ 291,413
$ 73,722	$ 67,199	$ 83,971	$ 123,343	$ 126,254
Not past due	One month past due	Two months past due 1.363%~ 100% $ 338,028	Three months past due 6.516%~ 100% $ 89,300 $ 53,877	Four months past due 30.147%~ 100% $ 61,643
	0.12%~ 85.804% $ 3,458,793
$ 89,954	$ 60,060	$ 47,054		$ 26,675

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Not past due March 31, 2019 Expected loss rate 0%~ 11.49% Total book value $ 37,444,544 Loss allowance $ 108,703	Not past due	One month past due	Two months past due 5.4%~ 83.33% $ 459,252	Three months past due 13.66%~ 99.97% $ 193,591 $ 65,186	Four months past due 40.90%~ 99.97% $ 98,926	Over four months past due 100% $347,298 $347,298	Total
		0.001%~ 50% $ 2,284,019					$ 40,827,630
	$ 108,703	$ 49,741	$ 67,293		$ 79,336		$ 717,557

(ii) Individually impaired and provisioned allowance for loss

Total book value Loss allowance		Individual	March 31, 2019 $ 456,760 $ 456,760
	March 31, 2020 $ 114,548 $ 114,548	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	March 31, 2020 0% $ 50,806,018 $-	December 31, 2019 0% $ 57,329,004 $-	March 31, 2019 0% $ 40,015,626 $-

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	(	2)	( 60,939) 179,832			118,893	118,891
Write-offs during the
period		-	( 14) ( 10)		(	24)	( 24)
Effect of foreign exchange		-	1,511	624		2,135	2,135
Transfers into overdue
receivables		-	-	(371)	(	371)	(371)
At March 31	$	-	$ 114,548	$ 928,594	$1,043,142		$1,043,142

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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	( 2,346)		(	6,299) ( 11,769)		(	18,068) ( 20,414)
Write-offs during the
period		-	(	3,092) ( 10,451)		(	13,543) ( 13,543)
Effect of foreign exchange		-		1,652	14,570		16,222	16,222
At March 31	$	-	$ 456,760		$ 717,557	$1,174,317		$1,174,317

(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:

March 31, 2020 Less than 1 year Between 1 and 2 years Short-term borrowings $ 66,434,990 $ - Short-term notes and bills payable 5,940,000 - Financial liabilities measured at fair value through profit or loss 3,313 - Notes payable 83,557 - Accounts payable 71,209,166 - Accounts payable - related parties 69,956 - Other payables 7,488,930 - Lease liabilities 455,958 377,455 Long-term borrowings (including current portion) 7,934,740 8,842,449 Non-derivative financial liabilities: December 31, 2019 Less than 1 year Between 1 and 2 years 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 476,832 459,436 Long-term borrowings (including current portion) 5,631,937 7,381,807	Between 2 and 5 years $ - - - - - - - 249,935 3,752,228 Between 2 and 5 years $ - - - - - - - 293,421 88,615	Over 5 years $ - - - - - - - 31,359 4,817,617 Over 5 years $ - - - - - - - 43,714 -

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Non-derivative financial liabilities:

March 31, 2019 Less than 1 year Between 1 and 2 years Short-term borrowings $ 46,171,896 $ - Short-term notes and bills payable 5,060,000 - Financial liabilities measured at fair value through profit or loss 4,169 - Notes payable 65,043 - Accounts payable 54,017,241 - Accounts payable - related parties 45 - Other payables 4,517,585 - Lease liabilities 460,287 429,937 Long-term borrowings (including current portion) 615,408 5,932,018	Between 2 and 5 years $ - - - - - - - 466,732 7,516,939	Over 5 years $ - - - - - - - 55,807 146,694

(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: 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,

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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:

follows:
(a) The related information on the	nature of the assets and liabilities is as follows:
March 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	$	-	$ 6,623	$ -	$	6,623
Equity securities	133,154		26,071	1,133,019	1,292,244
Financial assets at fair value
through other comprehensive
income
Equity securities		-	-	24,956		24,956
	$ 133,154		$ 32,694	$1,157,975	$1,323,823
Liabilities
Recurring fair value measurements
Forward exchange contracts	$	-	$ 3,313	$-	$	3,313
December 31, 2019	Level 1		Level 2	Level 3		Total
Assets
Recurring fair value measurements
Financial assets at fair value
through profit or loss
Forward exchange contracts	$	-	$ 2,513	$ -	$	2,513
Beneficiary certificates		-	300,054	-		300,054
Equity securities	166,625		33,103	1,152,863	1,352,591
Financial assets at fair value
through other comprehensive
income
Equity securities		-	-	32,035		32,035
	$ 166,625		$ 335,670	$1,184,898	$1,687,193
Liabilities
Recurring fair value measurements
Forward exchange contracts	$	-	$ 16,051	$-	$	16,051

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March 31, 2019 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Forward exchange contracts Equity securities Financial assets at fair value through other comprehensive income Equity securities Liabilities Recurring fair value measurements Forward exchange contracts	Level 1 $ - 166,239 - $ 166,239 $-	Level 2 $ 3,369 32,751 - $ 36,120 $ 4,169	Level 3 $ - 1,124,018 32,035 $1,156,053 $-	Total
				$ 3,369 1,323,008 32,035
				$1,358,412
				$ 4,169

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

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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 three months ended March 31, 2020 and 2019:

2020 At January 1 $ 1,184,898 Capital reduction ( 20,412) Effect of foreign exchange (6,511) At March 31 $ 1,157,975	2019 $ 1,142,927 - 13,126 $ 1,156,053

F. For the three months ended March 31, 2020 and 2019, 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 of 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
		March 31,	Valuation	unobservable	(weighted	of inputs to
		2020	technique	input	average)	fair value
Non-derivative
equity:
Equity	$	1,157,975	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
	Fair value at		Significant	Range	Relationship
	March 31,	Valuation	unobservable	(weighted	of inputs to
	2019	technique	input	average)	fair value
Non-derivative
equity:
Equity	$ 1,156,053	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:

March 31, 2020

Input Change Financial assets Equity instrument Net asset value ± 1%	Input Change	Recognized in profit or loss Favourable change Unfavourable change $ 11,330 ($ 11,330)	Recognized in other comprehensive income Favourable change Unfavourable change $ 250 ($ 250)
		Favourable change $ 11,330 (	Favourable change $ 250 (

December 31, 2019

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

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March 31, 2019

Input Change Financial assets Equity instrument Net asset value ± 1%	Input Change	Recognized in profit or loss	Recognized in profit or loss	Recognized in other comprehensive income Favourable change Unfavourable change $ 320 ($ 320)
		Favourable change $ 11,240 (	Unfavourable change $ 11,240)	Favourable change $ 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 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,

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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 three months ended March 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 ended March 31, 2020 and 2019 is as follows:

Three months ended March 31, 2020:

Asian Silicon Information World Peace Application Technology Inc. Yosun Industrial Trigold Industrial Co., Ltd. Corp. and its and its Corp. and Holdings and its subsidiaries subsidiaries subsidiaries its subsidiaries Limited Others Eliminations Total Revenue from external customers $ 70,742,624 $ 12,917,205 $ 16,150,197 $ 17,090,981 $ 3,363,457 $ 10,780,111 $ - $ 131,044,575 Revenue from internal customers 2,952,219 1,113,474 324,196 1,167,786 149,668 2,343,757 ( 8,051,100) - Total revenue $ 73,694,843 $ 14,030,679 $ 16,474,393 $ 18,258,767 $ 3,513,125 $ 13,123,868 ($ 8,051,100) $ 131,044,575 Segment profit $ 1,555,443 $ 352,689 $ 422,853 $ 389,580 $ 96,570 $ 227,541 $ 201,392 $ 3,246,068 Net income $ 787,389 $ 128,348 $ 306,041 $ 254,942 $ 24,764 $ 1,641,067 ($ 1,522,385) $ 1,620,166

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Three months ended March 31, 2019:

Asian Silicon Information World Peace Application Technology Inc. Yosun Industrial Trigold Industrial Co., Ltd. Corp. and its and its Corp. and Holdings and its subsidiaries subsidiaries subsidiaries its subsidiaries Limited Others Eliminations Total Revenue from external customers $ 52,794,401 $ 14,411,835 $ 14,954,905 $ 15,382,895 $ 2,911,397 $ 11,376,500 $ - $ 111,831,933 Revenue from internal customers 3,480,300 948,982 334,344 1,236,973 176,856 809,164 ( 6,986,619) - Total revenue $ 56,274,701 $ 15,360,817 $ 15,289,249 $ 16,619,868 $ 3,088,253 $ 12,185,664 ($ 6,986,619) $ 111,831,933 Segment profit $ 1,348,975 $ 373,987 $ 365,059 $ 334,817 $ 96,826 $ 147,925 $ 263,723 $ 2,931,312 Net income $ 622,477 $ 168,165 $ 202,212 $ 234,008 $ 20,920 $ 1,342,703 ($ 1,277,632) $ 1,312,853

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WPG Holdings Limited and Subsidiaries

Table 1

Loans to others

Three months ended March 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Maximum outstanding balance during the three months ended March 31,2020 Balance at March 31,2020 Interest rate Nature of loan (Note 7) Amount of transactions with the borrower Reason for short-term financing Allowance for doubtful accounts Actual amount drawn down 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
1 Apache Korea Corp. WPG Korea Co., Ltd. Other receivables - related parties Y 50,000 $ 50,000 $ 50,000 $ 3.50 2 - $ Operations - $ 2 Genuine C&C (IndoChina) Pte Ltd World Peace International (South Asia) Pte Ltd Other receivables - related parties Y 60,450 60,450 60,450 2.76 2 - Operations - 3 GENUINE C&C HOLDING INC. (Seychelles) Peng Yu International Limited Other receivables - related parties Y 120,900 120,900 120,900 3.90 2 - Operations - 4 Richpower Electronic Devices Pte., Ltd. Yosun Singapore Pte Ltd. Other receivables - related parties Y 226,688 226,688 217,620 2.76~3.45 2 - Operations - 5 World Peace International Pte Ltd World Peace International (South Asia) Pte Ltd Other receivables - related parties Y 120,900 120,900 120,900 2.76 2 - Operations - 6 World Peace International (South Asia) Pte Ltd WPI International (Hong Kong) Limited Other receivables - related parties Y 1,813,500 1,813,500 1,813,500 3.17 2 - Operations - 7 WPG C&C Computers And Peripheral (India) Private Limited World Peace International (India) Pvt., Ltd. Other receivables - related parties Y 84,070 84,070 - 0.00 2 - Operations - 8 WPG C&C Limited WPI International (Hong Kong) Limited Other receivables - related parties Y 241,800 241,800 241,800 2.02 2 - Operations - 9 WPG India Electronics Pvt Ltd World Peace International (India) Pvt., Ltd. Other receivables - related parties Y 40,033 40,033 36,030 9.25 2 - Operations - 10 WPG South Asia Pte. Ltd. World Peace International (South Asia) Pte Ltd Other receivables - related parties Y 453,375 453,375 120,900 2.76 2 - Operations -	None - None - None - None - None - None - None - None - None - None -	73,535 $ 78,747 133,745 452,712 2,295,259 6,853,744 339,783 272,790 166,089 1,366,673	73,535 $ 78,747 133,745 452,712 2,295,259 6,853,744 339,783 272,790 166,089 1,366,673	Note 1 Note 3 Note 5 Note 4 Note 3 Note 3 Note 3 Note 5 Note 3 Note 4

Table 1, Page 1

No. Creditor Borrower General ledger account Is a related party Amount of transactions with the borrower Nature of loan (Note 7) Maximum outstanding balance during the three months ended March 31,2020 Balance at March 31,2020 Actual amount drawn down Interest rate Allowance for doubtful accounts Reason for short-term financing	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 604,500 $ 453,375 $ 226,688 $ 3.50 2 - $ Operations - $ 11 Yosun Hong Kong Corp. Ltd. WPG Electronics (HK) Limited Other receivables - related parties Y 1,511,250 1,511,250 1,511,250 2.75~2.98 2 - Operations - 11 Yosun Hong Kong Corp. Ltd. Peng Yu International Limited Other receivables - related parties Y 755,625 - - 0.00 2 - Operations - 12 AECO Technology Co., Ltd. World Peace Industrial Co., Ltd. Other receivables - related parties Y 200,000 200,000 118,750 1.55 2 - Operations - 13 AECO Electronics Co., Ltd. WPI International (Hong Kong) Limited Other receivables - related parties Y 725,400 725,400 725,400 2.02~2.90 2 - Operations - 14 WPG SCM Limited Peng Yu International Limited Other receivables - related parties Y 604,500 302,250 302,250 2.52 2 - Operations - 14 WPG SCM Limited WPG Holdings Limited Other receivables - related parties Y 241,800 - - 0.00 2 - Operations - 15 Yosun South China Corp. Ltd. WPG China Inc. Other receivables - related parties Y 63,825 63,825 63,825 2.80 2 - Operations - 15 Yosun South China Corp. Ltd. WPG China (SZ) Inc. Other receivables - related parties Y 119,140 106,375 106,375 2.80 2 - Operations - 16 Yosun Shanghai Corp. Ltd. WPG China Inc. Other receivables - related parties Y 148,925 148,925 148,925 2.80 2 - Operations - 16 Yosun Shanghai Corp. Ltd. WPG China (SZ) Inc. Other receivables - related parties Y 174,455 174,455 174,455 2.80 2 - Operations - 17 WPG Investment Co., Ltd. WPG Holdings Limited Other receivables - related parties Y 125,000 125,000 125,000 1.15 2 - Operations -	None - None - None - None - None - None - None - None - None - None - None - None -	1,366,673 $ 4,739,108 4,739,108 426,864 796,943 1,067,111 1,067,111 201,537 201,537 356,032 356,032 170,586	1,366,673 $ 4,739,108 4,739,108 426,864 796,943 1,067,111 1,067,111 201,537 201,537 356,032 356,032 170,586	Note 4 Note 5 Note 5 Note 2 Note 5 Note 4 Note 4 Note 5 Note 5 Note 5 Note 5 Note 2

Table 1, Page 2

No. Creditor Borrower General ledger account Is a related party Maximum outstanding balance during the three months ended March 31,2020 Balance at March 31,2020 Actual amount drawn down Interest rate Nature of loan (Note 7) 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
18 WPG C&C Shanghai Co., Ltd. Trigolduo (Shanghai) Industrial Development Ltd. Other receivables - related parties Y 12,765 $ - $ - $ 0.00 2 - $ Operations - $ 18 WPG C&C Shanghai Co., Ltd. Trigold Tongle (Shanghai) Industrial Development Ltd. Other receivables - related parties Y 12,765 12,765 1,277 4.60 2 - Operations - 19 WPI International (Hong Kong) Limited WPG Korea Co., Ltd. Other receivables - related parties Y 604,500 604,500 241,800 3.50~4.53 2 - Operations - 19 WPI International (Hong Kong) Limited WPG Electronics (HK) Limited Other receivables - related parties Y 604,500 604,500 - 0.00 2 - Operations - 19 WPI International (Hong Kong) Limited Peng Yu International Limited Other receivables - related parties Y 423,150 423,150 - 0.00 2 - Operations - 20 World Peace Industrial Co., Ltd. Longview Technology Inc. Other receivables - related parties Y 854,500 552,250 63,254 1.95~3.20 2 - Operations - 20 World Peace Industrial Co., Ltd. Long-Think International Co., Ltd. Other receivables - related parties Y 45,338 45,338 - 0.00 2 - Operations - 20 World Peace Industrial Co., Ltd. WPI International (Hong Kong) Limited Other receivables - related parties Y 2,871,375 2,871,375 1,964,625 3.20 2 - Operations - 21 Everwiner Enterprise Co., Ltd. Pernas Electronics Co., Ltd. Other receivables - related parties Y 200,000 200,000 200,000 1.37 2 - Operations - 22 Silicon Application (BVI) Corporation Silicon Application Corp. Other receivables - related parties Y 1,209,000 1,209,000 1,209,000 1.70 2 - Operations - 22 Silicon Application (BVI) Corporation Peng Yu International Limited Other receivables - related parties Y 120,900 120,900 120,900 3.20 2 - Operations - 23 Silicon Application Company Limited Silicon Application Corp. Other receivables - related parties Y 695,175 695,175 695,175 1.70 2 - Operations -	None - None - None - None - None - None - None - None - None - None - None - None -	113,771 $ 113,771 19,003,870 19,003,870 19,003,870 8,108,369 8,108,369 8,108,369 214,874 1,296,429 3,241,072 729,576	284,427 $ 284,427 19,003,870 19,003,870 19,003,870 10,811,158 10,811,158 10,811,158 214,874 3,241,072 3,241,072 1,823,940	Note 5 Note 5 Note 5 Note 5 Note 5 Note 6 Note 6 Note 6 Note 2 Note 5 Note 5 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 three months ended March 31,2020 Balance at March 31,2020 Actual amount drawn down Interest rate Nature of loan (Note 7) 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
23 Silicon Application Company Limited Yosun Hong Kong Corp. Ltd. Other receivables - related parties Y 604,500 $ 604,500 $ 604,500 $ 3.09 2 - $ Operations - $ 23 Silicon Application Company Limited WPG China Inc. Other receivables - related parties Y 302,250 - - 0.00 2 - Operations - 23 Silicon Application Company Limited Peng Yu International Limited Other receivables - related parties Y 181,350 181,350 181,350 2.85 2 - Operations - 23 Silicon Application Company Limited WPG Electronics (HK) Limited Other receivables - related parties Y 302,250 302,250 302,250 2.85 2 - Operations - 24 Silicon Application Corp. WPG Electronics (HK) Limited Other receivables - related parties Y 1,057,875 1,057,875 1,057,875 2.85 2 - Operations - 25 Sertek Limited Yosun Hong Kong Corp. Ltd. Other receivables - related parties Y 441,285 441,285 441,285 2.20 2 - Operations - 26 Sertek Incorporated Richpower Electronic Devices Co., Ltd Other receivables - related parties Y 302,250 302,250 302,250 3.25 2 - Operations - 27 Genuine C&C Inc. Hoban Inc. Other receivables - related parties Y 50,000 50,000 - 0.00 2 - Operations - 27 Genuine C&C Inc. Peng Yu International Limited Other receivables - related parties Y 300,000 300,000 - 0.00 2 - Operations - 28 Richpower Electronic Devices Co., Limited Silicon Application Corp. Other receivables - related parties Y 604,500 604,500 604,500 3.09 2 - Operations - 28 Richpower Electronic Devices Co., Limited Yosun Hong Kong Corp. Ltd. Other receivables - related parties Y 604,500 604,500 - 0.00 2 - Operations - 29 Long-Think International (Hong Kong) Limited WPI International (Hong Kong) Limited Other receivables - related parties Y 453,375 453,375 211,575 2.02 2 - Operations -	None - None - None - None - None - None - None - None - None - None - None - None -	1,823,940 $ 1,823,940 1,823,940 1,823,940 2,933,007 449,508 669,927 452,103 452,103 950,476 2,376,190 539,386	1,823,940 $ 1,823,940 1,823,940 1,823,940 2,933,007 449,508 669,927 452,103 452,103 2,376,190 2,376,190 539,386	Note 5 Note 5 Note 5 Note 5 Note 2 Note 5 Note 2 Note 2 Note 2 Note 5 Note 5 Note 5

Table 1, Page 4

Maximum

Maximum
outstanding balance during the three months ended March 31,2020 No. Creditor Borrower General ledger account Is a related party Reason for short-term financing Allowance for doubtful accounts Balance at March 31,2020 Actual amount drawn down Interest rate Nature of loan (Note 7) Amount of transactions with the borrower	Collateral	Limit on loans granted to a single party	Ceiling on total loansgranted	Footnote
	Item Value
30 Long-Think International Co., Ltd. World Peace Industrial Co., Ltd. Other receivables - related parties Y 18,000 $ 18,000 $ 18,000 $ 1.52 2 - $ Operations - $ 31 Peng Yu (Shanghai) Digital Technology Co., Ltd. Trigolduo (Shanghai) Industrial Development Ltd. Other receivables - related parties Y 34,040 34,040 34,040 4.60 2 - Operations - 31 Peng Yu (Shanghai) Digital Technology Co., Ltd. WPG C&C Shanghai Co., Ltd. Other receivables - related parties Y 110,630 110,630 110,630 4.60 2 - Operations - 32 Trigolduo (Shanghai) Industrial Development Ltd. Trigold Tongle (Shanghai) Industrial Development Ltd. Other receivables - related parties Y 5,957 5,957 5,957 4.85 2 - Operations -	None - None - None - None -	19,889 $ 108,071 270,179 5,093	19,889 $ 270,179 270,179 5,093	Note 2 Note 5 Note 5 Note 2

Note 1: Accumulated financing activities and the individual limit to any company or person should not be in excess of 100% of creditors’ 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 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, financing activities to a single company should not be in excess of 30% of creditor’s assets.
Note 7: The column of ‘Nature of loan’ shall fill in 1. ‘Business transaction or 2. ‘Short-term financing’.

Table 1, Page 5

Table 2

WPG Holdings Limited and Subsidiaries

Provision of endorsements and guarantees to others

Three months ended March 31, 2020

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 March 31,2020	Outstanding endorsement/ guarantee amount at March 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 1 1 2 2 2 2 3 3 3 4 5 6 6	WPG Holdings Limited 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. Frontek Technology Corporation Apache Communication Inc. Asian Information Technology Inc. Asian Information Technology Inc.	World Peace Industrial Co., Ltd. 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 Asian Information Technology Inc. Note 2 Asian Information Technology Inc. Note 2 WPG China Inc. Note 3 Frontek Technology Corporation Note 1	32,687,993 $ 7,460,436 7,460,436 7,460,436 9,090,225 9,090,225 9,090,225 9,090,225 13,513,948 13,513,948 13,513,948 977,640 475,986 2,592,731 2,592,731	153,510 $ 166,238 132,990 302,250 1,127,393 302,250 2,418,000 600,000 1,163,663 68,006 664,950 622,250 100,000 15,113 855,890	153,510 $ 166,238 132,990 302,250 1,127,393 302,250 2,418,000 600,000 1,163,663 68,006 664,950 622,250 100,000 15,113 855,890	76,755 $ 10,956 - 302,250 616,193 74,362 1,476,070 248,565 706,707 68,006 664,950 622,250 100,000 - 100,453	76,755 $ - - - - - - - - - - - - - -	0.23 4.46 3.57 8.10 12.40 3.33 26.60 6.60 4.31 0.25 2.46 25.46 8.40 0.23 13.20	32,687,993 $ 7,460,436 7,460,436 7,460,436 18,180,450 18,180,450 18,180,450 18,180,450 21,622,317 21,622,317 21,622,317 1,222,050 594,982 3,240,914 3,240,914	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 N	N Notes 4 and 5 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 11 N Note 11 Y Note 8 N Note 8

Table 2, Page 1

Number	Endorser/ guarantor	Partybeingendorsed/guaranteed	Limit on endorsements/ guarantees provided for a singleparty	Maximum outstanding endorsement/ guarantee amount as of March 31,2020	Outstanding endorsement/ guarantee amount at March 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
7 8 8 8	Pernas Electronics Co., Ltd. Trigold Holding Limited Trigold Holdings Limited Trigold Holdings Limited	Silicon Application Corp. Note 2 Peng Yu (Shanghai) Digital Technology Co., Ltd. Note 1 Peng Yu International Limited Note 1 WPG C&C Shanghai Co., Ltd. Note 1	519,322 589,801 589,801 589,801	100,000 42,550 60,450 127,650	100,000 42,550 60,450 127,650	- 42,550 60,450 127,650	- - - -	9.63 3.61 5.12 10.82	519,322 589,801 589,801 589,801	N N N N	N N N N	N Note 12 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 60% 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 $76,755.
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 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 2

WPG Holdings Limited and Subsidiaries

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

Three months ended March 31, 2020

Table 3

Expressed in thousands of NTD

(Except as otherwise indicated)

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account		As of March31,2020	As of March31,2020		Footnote
				Number of shares (in thousands)	Bookvalue	Ownership (%)	Fairvalue(Note 1)
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. Silicon Application (BVI) Corp.	Restar Holdings Corporation Tyche Partners L.P. - Funds CDIB CME Fund Ltd., etc. - Equity securities Kingmax Technology Inc., etc. - Equity securities Silicon Line GmbH, Munich etc. - Equity securities Hua-Jie (Taiwan) Corp. - Equity securities Fortend Taiwan Scientific Corp., etc. - Equity securities Systemweb Technology - Equity securities Promaster Technology Co., Ltd., etc. - Equity securities DIGITIMES Inc. etc. - Equity securities Actiontec Electronics Inc. etc. - Equity securities	None None None None None None None None None None None	Financial assets at at fair value through profit or loss- non- current Financial assets at at fair value through profit or loss- non- current Financial assets at at fair value through profit or loss- non- current Financial assets at at fair value through profit or loss- non- current, etc. Financial assets at at fair value through profit or loss- non- current Financial assets at at fair value through profit or loss- non- current Financial assets at at fair value through profit or loss- non- current Financial assets at at fair value through profit or loss- non- current Financial assets at at fair value through profit or loss- non- current Financial assets at at fair value through profit or loss- non- current, etc. Financial assets at at fair value through profit or loss- non- current	230 - - - - 668 - 700 - - -	97,084 $ 304,820 150,264 12,326 24,068 6,684 11,507 8,705 30,875 104,890 6,593	1.46 - - - - 3.32 - 9.52 - - -	97,084 $ 304,820 150,264 12,326 24,068 6,684 11,507 8,705 30,875 104,890 6,593	Note 2 Note 3

Table 3, Page 1

As of March 31, 2020

Securities held by	Marketable securities	Relationship with the securities issuer	General ledger account	Number of shares (in thousands)	Bookvalue	Ownership (%)	Fairvalue(Note 1)	Footnote
Asian Information Technology Inc. Win-Win Systems Ltd. WPG South Asia Pte. Ltd. WPG China Inc.	MCUBE. Inc. - 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	Financial assets at at fair value through profit or loss- non- current Financial assets at at fair value through profit or loss- non- current Financial assets at at fair value through profit or loss- non- current Financial assets at at fair value through profit or loss- non- current	- 180 20 -	- $ - 653 558,731	- - 9 -	- $ - 653 558,731

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 was 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 would be changed.

Note 3: There are 566 thousand shares of Kingmax Technology Inc. which have been pledged for purchases as of March 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

Three months ended March 31, 2020

Investor Table 4	Marketable securities	General ledger account	Counterparty	Relationship with the counterparty	Balance as at January1,2020	Balance as at January1,2020	Addition	Addition		Disposal	Disposal		Balance as at March 31,2020 Expressed in thousands of NTD (Except as otherwise indicated)	Balance as at March 31,2020 Expressed in thousands of NTD (Except as otherwise indicated)
					No. of shares (inthousands)	Amount	No. of shares (inthousands)	Amount	No. of shares (inthousands)	Selling price	Bookvalue	Gain (loss) on disposal	No. of shares (inthousands)	Amount
WPG Holdings Limited	WT Microelectronics Co., Ltd.	Note 1	Stock exchange market	None	-	- $	177,110	8,111,638 $	-	$ -	$ -	$ -	177,110	8,111,638 $

Note 1: It is recorded as investments accounted for under equity method.

Table 4, Page 1

Table 5

WPG Holdings Limited and Subsidiaries

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

Three months ended March 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Real estate acquired by	Real estate acquired	Date of the event	Transaction amount	Status of payment (Note2)	Counterparty	Relationship with the counterparty	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below:	Basis or reference used in setting the price	Reason for acquisition of real estate and status of the real estate	Other commitments
							Original owner who sold the real estate to the counterparty	Relationship between the original owner and the acquirer	Date of the original transaction	Amount
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	$ 2,942,265 593,201 654,847	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 and 2018, the total amount was $885,615 and $241,531, respectively, for the year ended December 31, 2019, the amount was $241,531, and for the three months ended March 31, 2020, the amount was $2,821,636.

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 Three months ended March 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Differences in transaction terms

							Differences in transaction terms	Differences in transaction terms
Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction			compared to third party transactions		Notes/accounts receivable(payable)		Footnote
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
WPG Holdings Limited World Peace Industrial Co., Ltd. " " " " " World Peace International (South Asia) Pte Ltd. World Peace International (South Asia) Pte Ltd. WPI International (Hong Kong) Limited " " " " Silicon Application Corp. " Everwiner Enterprise Co., Ltd. Asian Information Technology Inc. " Henshen Electric Trading Co., Ltd.	World Peace Industrial Co., Ltd. WPI International (Hong Kong) Limited WPG Electronics (HK) Limited WPG China (SZ) Inc. WPG China Inc. WPG SCM Limited WPG Korea Co., Ltd. WPG C&C Computers And Peripheral (India) Private Limited WPG SCM Limited World Peace Industrial Co., Ltd. World Peace International (South Asia) Pte Ltd. WPG China (SZ) Inc. WPG China Inc. WPG SCM Limited WPG Electronics (HK) Limited WPG China (SZ) Inc. Pernas Electronics Co., Ltd. Frontek Technology Corporation Apache Communication Inc. Frontek Technology Corporation	Same parent company " " " " " " " " " " " " " " " " " " "	Sales " " " " " " " " " " " " " " " " " " "	125,510) ($ 964,991) ( 178,957) ( 280,991) ( 139,748) ( 281,953) ( 493,863) ( 184,317) ( 760,618) ( 1,139,173) ( 363,165) ( 279,828) ( 213,392) ( 229,527) ( 846,470) ( 169,264) ( 352,505) ( 1,018,675) ( 206,097) ( 112,606) (	55.35) ( 3.44) ( 0.64) ( 1.00) ( 0.50) ( 1.01) ( 1.76) ( 2.98) ( 12.29) ( 2.72) ( 0.87) ( 0.67) ( 0.51) ( 0.55) ( 6.60) ( 1.32) ( 37.47) ( 13.07) ( 2.64) ( 36.33) (	Note 5 Note 3 " " " " " " " " " " " " 90 days after monthly billings " Note 2 " " "	Note 5 Note 3 " " " " " " " " " " " " Note 4 " " Note 2 " "	Note 5 Note 3 " " " " " " " " " " " " Note 4 " " Note 2 " "	47,145 $ 558,593 201,063 229,244 140,248 116,048 206,544 77,041 626,264 482,679 153,817 210,473 214,186 96,482 1,039,283 115,539 236,416 705,585 91,035 74,419	51.73 2.20 0.79 0.90 0.55 0.46 0.81 1.82 14.77 1.36 0.43 0.59 0.60 0.27 8.51 0.95 28.87 11.20 1.45 36.34

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	Unit price	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Frontek Technology Corporation Apache Communication Inc. WPG Electronics (HK) Limited " " WPG Americas Inc. WPG South Asia Pte. Ltd. Yosun Industrial Corp. " " Yosun Hong Kong Corp. Ltd. " Yosun Singapore Pte Ltd. " Sertek Incorporated Sertek Incorporated Richpower Electronic Devices Co., Ltd. Richpower Electronic Devices Co., Limited " Peng Yu International Limited "	Asian Information Technology Inc. " World Peace Industrial Co., Ltd. WPI International (Hong Kong) Limited Peng Yu International Limited World Peace Industrial Co., Ltd. World Peace International (South Asia) Pte Ltd. WPG China (SZ) Inc. WPG China Inc. Yosun Hong Kong Corp. Ltd. WPG China Inc. Richpower Electronic Devices Co., Limited WPG SCM Limited Yosun Hong Kong Corp. Ltd. 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 C&C Shanghai Co., Ltd.	Same parent company " " " " " " " " " " " " " " " " " " " "	Sales " " " " " " " " " " " " " " " " " " " "	523,837) ($ 181,499) ( 749,733) ( 711,892) ( 171,875) ( 159,190) ( 112,742) ( 122,912) ( 108,429) ( 669,345) ( 427,188) ( 161,097) ( 126,580) ( 106,473) ( 123,639) ( 124,570) ( 230,613) ( 1,363,188) ( 680,810) ( 148,413) ( 198,572) (	10.58) ( 3.36) ( 23.80) ( 22.59) ( 5.46) ( 5.19) ( 30.31) ( 2.22) ( 1.96) ( 12.08) ( 7.23) ( 2.73) ( 8.29) ( 6.97) ( 3.24) ( 3.26) ( 14.36) ( 39.54) ( 19.75) ( 26.96) ( 36.08) (	Note 2 " Notes 3 and 5 " " Note 3 Note 5 Note 6 " Note 3 Note 6 Note 3 " " " " Note 6 Note 3 " " "	Note 2 " Notes 3 and 5 " " Note 3 Note 5 Note 6 " Note 3 Note 6 Note 3 " " " " Note 6 Note 3 " " "	Note 2 " Notes 3 and 5 " " Note 3 Note 5 Note 6 " Note 3 Note 6 Note 3 " " " " Note 6 Note 3 " " "	131,931 $ 35,254 303,770 427,674 174,696 62,082 - 94,965 108,843 241,681 428,987 78,464 76,681 56,037 20,631 22,934 274,535 76,185 272,919 135,202 78,234	2.93 0.78 11.85 16.69 6.82 3.91 - 3.38 3.88 8.61 12.48 2.28 6.23 4.55 2.49 2.77 18.04 4.04 14.47 53.09 30.72

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 2

Table 7

WPG Holdings Limited and Subsidiaries

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

Three months ended March 31, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship withthe counterparty	Balance as at March 31, 2020 (Note1)	Turnover rate (Note2)	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date (Note 3)	Allowance for doubtfulaccounts
					Amount	Actiontaken
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. 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. Everwiner Enterprise Co., Ltd. Asian Information Technology Inc. Frontek Technology Corporation Frontek Technology Corporation WPG Electronics (HK) Limited WPG Electronics (HK) Limited WPG Electronics (HK) Limited WPG Korea Co., Ltd. Yosun Industrial Corp. Yosun Industrial Corp. Yosun Hong Kong Corp. Ltd.	WPI International (Hong Kong) Limited WPG Electronics (HK) Limited WPG China (SZ) Inc. WPG China Inc. WPG SCM Limited WPG Korea Co., Ltd. WPG SCM Limited World Peace Industrial Co., Ltd. World Peace International (South Asia) Pte Ltd. WPG China (SZ) Inc. WPG China Inc. WPG Electronics (HK) Limited WPG China (SZ) Inc. Pernas Electronics Co., Ltd. Frontek Technology Corporation Asian Information Technology Inc. WPG Electronics (HK) Limited World Peace Industrial Co., Ltd. WPI International (Hong Kong) Limited Peng Yu International Limited WPG South Asia Pte. Ltd. WPG China Inc. Yosun Hong Kong Corp. Ltd. WPG China Inc.	Same parent company " " " " " " " " " " " " " " " " " " " " " " "	558,593 $ 201,063 229,244 140,248 116,048 206,544 626,264 482,679 153,817 210,473 214,186 1,039,283 115,539 236,416 705,585 131,931 205,058 303,770 427,674 174,696 175,955 108,843 241,681 428,987	7.97 3.57 5.44 4.18 10.47 11.72 5.35 10.88 11.56 5.10 3.59 3.13 5.02 5.67 5.90 12.71 2.07 19.62 11.45 7.12 0.03 3.85 12.61 5.05	139 $ 3,060 - - - - - - - - - - - - - - - - - - 175,955 - - -	- - - - - - - - - - - - - - - - - - - - - - - -	558,593 $ 51,261 72,805 35,812 116,048 206,520 90,675 482,679 153,817 104,373 46,547 228,243 41,344 99,467 277,097 105,743 62,900 - - 75,563 - 34,499 241,681 114,962	- $ - - - - - - - - - - - - - - - - - - - - - - -

Table 7, Page 1

Creditor	Counterparty	Relationship withthe counterparty	Balance as at March 31, 2020 (Note1)	Turnover rate (Note2)	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date (Note 3)	Allowance for doubtfulaccounts
					Amount	Actiontaken
Richpower Electronic Devices Co., Ltd. Richpower Electronic Devices Co., Limited Peng Yu International Limited WPG Holdings Limited World Peace Industrial Co., Ltd. World Peace International 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 WPG C&C Limited Long-Think International (Hong Kong) Limited AECO Technology Co., Ltd. AECO Electronic Co., Ltd. Silicon Application Corp. Silicon Application Corp. Silicon Application (BVI) Corp. Silicon Application (BVI) Corp. Silicon Application Company Limited Silicon Application Company Limited Silicon Application Company Limited Silicon Application Company Limited	WPG Electronics (HK) Limited Yosun Hong Kong Corp. Ltd. WPG Electronics (HK) Limited Silicon Application Corp. WPI International (Hong Kong) Limited World Peace International (South Asia) Pte Ltd. WPI International (Hong Kong) Limited WPG SCM Limited WPG South Asia Pte. Ltd. World Peace International (South Asia) Pte Ltd. WPG Electronics (HK) Limited WPG Korea Co., Ltd. Peng Yu International Limited WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited World Peace Industrial Co., Ltd. WPI International (Hong Kong) Limited Pernas Electronics Co., Ltd. WPG Electronics (HK) Limited Silicon Application Corp. Peng Yu International Limited Silicon Application Corp. WPG Electronics (HK) Limited Yosun Hong Kong Corp. Ltd. Peng Yu International Limited	Same parent company " " " " " " " " " " " " " " " " " " " " " " " "	274,535 $ 272,919 135,202 651,532 2,354,772 121,187 1,818,505 108,803 187,571 128,583 131,053 246,674 779,002 243,510 215,342 118,974 733,665 228,107 1,058,385 1,227,098 122,007 699,906 302,370 608,443 181,623	3.16 15.38 4.64 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	- $ - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - -	53,436 $ 75,482 - - 383,081 - 914,452 - 187,571 117 - 246,674 - - - - - 228,107 - - - - - - -	- $ - - - - - - - - - - - - - - - - - - - - - - - -

Table 7, Page 2

Creditor	Counterparty	Relationship withthe counterparty	Balance as at March 31, 2020 (Note1)	Turnover rate (Note2)	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date (Note 3)	Allowance for doubtfulaccounts
					Amount	Actiontaken
Pernas Electronics Co., Ltd. Everwiner Enterprise Co., Ltd. WPG South Asia Pte. Ltd. WPG South Asia Pte. Ltd. WPG SCM Limited Yosun Hong Kong Corp. Ltd. Yosun Shanghai Corp. Ltd. Yosun Shanghai Corp. Ltd. Yosun South China Corp. Ltd. Sertek Incorporated Sertek Limited Richpower Electronic Devices Co., Limited Richpower Electronic Devices Pte Ltd WPG Investment Co., Ltd. Genuine C&C Holding Inc. (Seychelles) Peng Yu (Shanghai) Digital Technology Co., Ltd. Peng Yu International Limited	Everwiner Enterprise Co., Ltd. Pernas Electronics Co., Ltd. World Peace International (South Asia) Pte Ltd. WPG Korea Co., Ltd. Peng Yu International Limited WPG Electronics (HK) Limited WPG China (SZ) Inc. WPG China Inc. WPG China (SZ) Inc. Richpower Electronic Devices Co., Ltd Yosun Hong Kong Corp. Ltd. Silicon Application Corp. Yosun Singapore Pte Ltd. WPG Holdings Limited Peng Yu International Limited WPG C&C Shanghai Co., Ltd. WPG Electronics (HK) Limited	Same parent company " " " " " " " " " " " " " " " "	196,623 $ 200,045 184,115 227,373 302,907 1,513,197 177,027 151,131 107,691 307,025 445,276 608,391 218,137 125,523 123,559 112,047 203,277	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	- $ - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - -	196,623 $ - 184,115 106,472 - - - - 3,545 - - - 60,967 40,142 62,591 - -	- $ - - - - - - - - - - - - - - - -

Note 1: Balance as at March 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 May 12, 2020.

Table 7, Page 3

WPG Holdings Limited and Subsidiaries Significant inter-company transactions during the reporting period Three months ended March 31, 2020

Table 8

Expressed in thousands of NTD (Except as otherwise indicated)

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledgeraccount	Amount	Transactionterms	Percentage of consolidated total operating revenues or total assets (Note 3)
0 1 1 1 1 1 1 2 2 3 3 3 3 3 7 7 9 10 10 11 12 13 15	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 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 WPI International (Hong Kong) Limited Silicon Application Corp. Silicon Application Corp. Everwiner Enterprise Co., Ltd. Asian Information Technology Inc. Asian Information Technology Inc. Henshen Electric Trading Co., Ltd. Frontek Technology Corporation Apache Communication Inc. WPG Electronics (HK) Limited	World Peace Industrial Co., Ltd. WPI International (Hong Kong) Limited WPG Electronics (HK) Limited WPG China (SZ) Inc. WPG China Inc. WPG SCM Limited WPG Korea Co., Ltd. WPG C&C Computers And Peripheral (India) Private Limited WPG SCM Limited World Peace Industrial Co., Ltd. World Peace International (South Asia) Pte Ltd. WPG China (SZ) Inc. WPG China Inc. WPG SCM Limited WPG Electronics (HK) Limited WPG China (SZ) Inc. Pernas Electronics Co., Ltd. Frontek Technology Corporation Apache Communication Inc. Frontek Technology Corporation Asian Information Technology Inc. Asian Information Technology Inc. World Peace Industrial Co., Ltd.	1 1 1 1 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3	Sales " " " " " " " " " " " " " " " " " " " " " "	125,510 $ 964,991 178,957 280,991 139,748 281,953 493,863 184,317 760,618 1,139,173 363,165 279,828 213,392 229,527 846,470 169,264 352,505 1,018,675 206,097 112,606 523,837 181,499 749,733	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 Notes 9 and 12 Notes 9 and 12 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 11	0.10 0.74 0.14 0.21 0.11 0.22 0.38 0.14 0.58 0.87 0.28 0.21 0.16 0.18 0.65 0.13 0.27 0.78 0.16 0.09 0.40 0.14 0.57

Table 8, Page 1

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledgeraccount	Amount	Transactionterms	Percentage of consolidated total operating revenues or total assets (Note 3)
15 15 18 19 21 21 21 22 22 23 23 24 24 25 26 26 27 27 1 1 1 1 1 1 2 3 3	WPG Electronics (HK) Limited WPG Electronics (HK) Limited WPG Americas Inc. WPG South Asia Pte. Ltd. Yosun Industrial Corp. Yosun Industrial Corp. Yosun Industrial Corp. Yosun Hong Kong Corp. Ltd. Yosun Hong Kong Corp. Ltd. Yosun Singapore Pte Ltd. Yosun Singapore Pte Ltd. Sertek Incorporated Sertek Incorporated Richpower Electronic Devices Co., Ltd. Richpower Electronic Devices Co., Limited Richpower Electronic Devices Co., Limited Peng Yu International Limited Peng Yu International 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 International (South Asia) Pte Ltd. WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited	WPI International (Hong Kong) Limited Peng Yu International Limited World Peace Industrial Co., Ltd. World Peace International (South Asia) Pte Ltd. WPG China (SZ) Inc. WPG China Inc. Yosun Hong Kong Corp. Ltd. WPG China Inc. Richpower Electronic Devices Co., Limited WPG SCM Limited Yosun Hong Kong Corp. Ltd. 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 C&C Shanghai Co., Ltd. WPI International (Hong Kong) Limited WPG Electronics (HK) Limited WPG China (SZ) Inc. WPG China Inc. WPG SCM Limited WPG Korea Co., Ltd. WPG SCM Limited World Peace Industrial Co., Ltd. World Peace International (South Asia) Pte 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 3	Sales " " " " " " " " " " " " " " " " " Accounts receivable " " " " " " " "	711,892 $ 171,875 159,190 112,742 122,912 108,429 669,345 427,188 161,097 126,580 106,473 123,639 124,570 230,613 1,363,188 680,810 148,413 198,572 558,593 201,063 229,244 140,248 116,048 206,544 626,264 482,679 153,817	Note 11 Note 10 Note 5 Note 10 Note 8 Note 8 Note 5 Note 8 Note 5 Note 5 Note 5 Note 5 Note 5 Note 8 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	0.54 0.13 0.12 0.09 0.09 0.08 0.51 0.33 0.12 0.10 0.08 0.09 0.10 0.18 1.04 0.52 0.11 0.15 0.22 0.08 0.09 0.06 0.05 0.08 0.25 0.19 0.06

Table 8, Page 2

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledgeraccount	Amount	Transactionterms	Percentage of consolidated total operating revenues or total assets (Note 3)
3 3 7 7 9 10 12 12 15 15 15 20 21 21 22 25 26 27 0 1 28 2 2 2 3 3	WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited Silicon Application Corp. Silicon Application Corp. Everwiner Enterprise Co., Ltd. Asian Information Technology Inc. Frontek Technology Corporation Frontek Technology Corporation WPG Electronics (HK) Limited WPG Electronics (HK) Limited WPG Electronics (HK) Limited WPG Korea Co., Ltd. Yosun Industrial Corp. Yosun Industrial Corp. Yosun Hong Kong Corp. Ltd. Richpower Electronic Devices Co., Ltd. Richpower Electronic Devices Co., Limited Peng Yu International Limited WPG Holdings Limited World Peace Industrial Co., Ltd. World Peace International 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	WPG China (SZ) Inc. WPG China Inc. WPG Electronics (HK) Limited WPG China (SZ) Inc. Pernas Electronics Co., Ltd. Frontek Technology Corporation Asian Information Technology Inc. WPG Electronics (HK) Limited World Peace Industrial Co., Ltd. WPI International (Hong Kong) Limited Peng Yu International Limited WPG South Asia Pte. Ltd. WPG China Inc. Yosun Hong Kong Corp. Ltd. WPG China Inc. WPG Electronics (HK) Limited Yosun Hong Kong Corp. Ltd. WPG Electronics (HK) Limited Silicon Application Corp. WPI International (Hong Kong) Limited World Peace International (South Asia) Pte Ltd. WPI International (Hong Kong) Limited WPG SCM Limited WPG South Asia Pte. Ltd. World Peace International (South Asia) Pte Ltd. WPG Electronics (HK) Limited	3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 3 1 3 3 3 2 3 3 3	Accounts receivable " " " " " " " " " " " " " " " " " Other receivables " " " " " " "	210,473 $ 214,186 1,039,283 115,539 236,416 705,585 131,931 205,058 303,770 427,674 174,696 175,955 108,843 241,681 428,987 274,535 272,919 135,202 651,532 2,354,772 121,187 1,818,505 108,803 187,571 128,583 131,053	Note 5 Note 5 Notes 9 and 12 Notes 9 and 12 Note 4 Note 4 Note 4 Note 4 Note 11 Note 11 Note 10 30 days from the end of the month Note 8 Note 5 Note 8 Note 8 Note 5 Note 5 Note 13 Note 7 Note 7 Note 7 Note 6 Note 6 Note 6 Note 6	0.08 0.09 0.42 0.05 0.10 0.28 0.05 0.08 0.12 0.17 0.07 0.07 0.04 0.10 0.17 0.11 0.11 0.05 0.26 0.95 0.05 0.73 0.04 0.08 0.05 0.05

Table 8, Page 3

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledgeraccount	Amount	Transactionterms	Percentage of consolidated total operating revenues or total assets (Note 3)
3 3 29 6 31 32 7 7 33 33 34 34 34 34 8 9 19 19 39 22 35 35 36 24 41 26 38 4	WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited WPG C&C Limited Long-Think International (Hong Kong) Limited AECO Technology Co., Ltd. AECO Electronic Co., Ltd. Silicon Application Corp. Silicon Application Corp. Silicon Application (BVI) Corp. Silicon Application (BVI) Corp. Silicon Application Company Limited Silicon Application Company Limited Silicon Application Company Limited Silicon Application Company Limited Pernas Electronics Co., Ltd. Everwiner Enterprise Co., Ltd. WPG South Asia Pte. Ltd. WPG South Asia Pte. Ltd. WPG SCM Limited Yosun Hong Kong Corp. Ltd. Yosun Shanghai Corp. Ltd. Yosun Shanghai Corp. Ltd. Yosun South China Corp. Ltd. Sertek Incorporated Sertek Limited Richpower Electronic Devices Co., Limited Richpower Electronic Devices Pte Ltd WPG Investment Co., Ltd.	WPG Korea Co., Ltd. Peng Yu International Limited WPI International (Hong Kong) Limited WPI International (Hong Kong) Limited World Peace Industrial Co., Ltd. WPI International (Hong Kong) Limited Pernas Electronics Co., Ltd. WPG Electronics (HK) Limited Silicon Application Corp. Peng Yu International Limited Silicon Application Corp. WPG Electronics (HK) Limited Yosun Hong Kong Corp. Ltd. Peng Yu International Limited Everwiner Enterprise Co., Ltd. Pernas Electronics Co., Ltd. World Peace International (South Asia) Pte Ltd. WPG Korea Co., Ltd. Peng Yu International Limited WPG Electronics (HK) Limited WPG China (SZ) Inc. WPG China Inc. WPG China (SZ) Inc. Richpower Electronic Devices Co., Ltd. Yosun Hong Kong Corp. Ltd. Silicon Application Corp. Yosun Singapore Pte Ltd. WPG Holdings Limited	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 3 2	Other receivables " " " " " " " " " " " " " " " " " " " " " " " " " "	246,674 $ 779,002 243,510 215,342 118,974 733,665 228,107 1,058,385 1,227,098 122,007 699,906 302,370 608,443 181,623 196,623 200,045 184,115 227,373 302,907 1,513,197 177,027 151,131 107,691 307,025 445,276 608,391 218,137 125,523	Note 7 Note 15 Note 7 Note 7 Note 7 Note 7 Note 13 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 13 Note 7 Note 10 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7 Note 7	0.10 0.31 0.10 0.09 0.05 0.30 0.09 0.43 0.49 0.05 0.28 0.12 0.24 0.07 0.08 0.08 0.07 0.09 0.12 0.61 0.07 0.06 0.04 0.12 0.18 0.24 0.09 0.05

Table 8, Page 4

Transaction

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledgeraccount	Amount	Transactionterms	Percentage of consolidated total operating revenues or total assets (Note 3)
37 40 27	Genuine C&C Holding Inc. (Seychelles) Peng Yu (Shanghai) Digital Technology Co., Ltd. Peng Yu International Limited	Peng Yu International Limited WPG C&C Shanghai Co., Ltd. WPG Electronics (HK) Limited	3 3 3	Other receivables " "	123,559 $ 112,047 203,277	Note 7 Note 14 Note 5	0.05 0.05 0.08

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. 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: Mainly dividends receivable. Note 14: The collection period is 45 days from the end of the month of sales.

Note 15: The amount receivable arose from payments to suppliers made on behalf of the associate.

Table 8, Page 5

Table 9

WPG Holdings Limited and Subsidiaries

Information on investees

Three months ended March 31, 2020

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at March 31,2020	Shares held as at March 31,2020	Shares held as at March 31,2020	Net profit (loss) of the investee for the three months ended March 31,2020	Investment income (loss) recognized by the Company for the three months ended March 31, 2020 (Note 1)	Footnote
				Balance as at March 31, 2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Book value
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. World Peace Industrial Co., Ltd.	World Peace Industrial Co., Ltd. Silicon Application Corp. Asian Information Technology Inc. WPG Electronics Limited WPG International (CI) Limited WPG Korea Co., Ltd. Yosun Industrial Corp. Trigold Holdings Limited WPG Investment Co., Ltd. WT Microelectronics Co., Ltd. World Peace International (BVI) Ltd. WPI Investment Holding (BVI) Company Ltd. Longview Technology Inc. AECO Technology Co., Ltd. Chainpower Technology Corp.	Taiwan Taiwan Taiwan Taiwan Cayman Islands South Korea Taiwan Taiwan Taiwan Taiwan British Virgin Islands British Virgin Islands Taiwan Taiwan Taiwan	Sales of electronic components Sales of computer software, hardware and electronic components Sales of electronic /electrical components Sales of electronic components Holding company Sales of electronic components Sales of electronic /electrical components Investment company Investment company Trading company Holding company Holding company Sales of electronic components Sales of electronic components Sales of electronic components	18,471,669 $ 5,717,962 4,863,464 14,735 4,583,583 169,071 12,144,406 707,968 502,997 8,111,638 1,132,162 2,774,146 364,290 1,468,555 66,261	18,471,669 $ 5,717,962 4,863,464 14,735 4,583,583 169,071 12,144,406 707,968 502,997 - 1,132,162 2,774,146 364,290 1,468,555 66,261	1,502,700,000 555,000,000 500,000,000 3,920,000 150,282,520 1,087,794 362,074,400 48,139,319 50,000,000 177,110,000 34,196,393 83,179,435 33,900,000 94,600,000 9,781,452	100.00 100.00 100.00 100.00 100.00 100.00 100.00 60.50 100.00 29.90 100.00 100.00 100.00 100.00 39.00	27,015,477 $ 7,332,518 6,481,828 52,116 5,289,766 496,843 12,847,096 754,480 426,464 8,138,712 3,849,204 19,054,337 608,455 1,671,824 171,016	787,627 $ 128,348 306,041 1,740 30,683 4,211 254,942 24,567 8,243) ( 616,034 56,355 471,709 13,378 3,521 20,755	787,627 $ 128,348 306,041 1,745 30,683 4,211 254,063 17,722 8,243) ( 122,796 - - - - -	Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 4 Note 6 Notes 2 and 5 Notes 2 and 5 Notes 2 and 5 Notes 2 and 5 Notes 2 and 3

Table 9, Page 1

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at March 31,2020	Shares held as at March 31,2020	Shares held as at March 31,2020	Net profit (loss) of the investee for the three months ended March 31,2020	Investment income (loss) recognized by the Company for the three months ended March 31, 2020 (Note 1)	Footnote
				Balance as at March 31, 2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Book value
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 Yosun Industrial Corp.	Longview Technology GC Limited Long-Think International Co., Ltd. Teco Enterprise Holding (BVI) Co., Ltd. Win-Win Systems Ltd. Silicon Application (BVI) Corp. SAC Components (South Asia) Pte. Ltd. Pernas Electronics Co., Ltd. Everwiner Enterprise Co., Ltd. Henshen Electric Trading Co., Ltd. Frontek Technology Corporation Apache Communication Inc. Fame Hall International Co., Ltd. Adivic Technology Co., Ltd. Frontek International Limited Suntop Investments Limited	British Virgin Islands Taiwan British Virgin Islands British Virgin Islands British Virgin Islands Singapore Taiwan Taiwan Taiwan Taiwan Taiwan British Virgin Islands Taiwan British Virgin Islands Cayman Islands	Holding company Sales of electronic /electrical components Investment company Holding company Holding company Sales of computer software, hardware and electronic components Sales of electronic components Sales of electronic components Wholesale of electronic components Wholesale of electronic components Wholesale of electronic components Investment company Import and export business for electronic components Investment company Investment company	335,328 $ 37,302 436,280 24,015 706,402 104,510 959,504 343,959 124,521 1,515,256 180,313 155,558 206,200 101,862 1,812,188	335,328 $ 37,302 436,280 24,015 706,402 104,510 959,504 343,959 124,521 1,515,256 180,313 155,558 206,200 101,862 1,812,188	11,300,000 4,000,000 12,610,000 765,000 22,000,000 3,500,000 73,500,000 28,000,000 10,000,000 214,563,352 107,000,000 4,703,107 4,410,000 2,970,000 50,700,000	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	539,587 $ 50,496 797,067 26,044 3,241,072 113,015 1,050,506 729,448 137,440 2,444,101 1,189,964 296,695 31,286 126,252 5,177,821	14,831 $ 634 3,949 123 18,715 632) ( 35,498 28,602 14,423 54,293 61,438 5,608) ( 2,655) ( 502 7,130	- $ - - - - - - - - - - - - - -	Notes 2 and 5 Notes 2 and 5 Notes 2 and 5 Notes 2 and 5 Notes 2 and 5 Notes 2 and 5 Notes 2 and 5 Notes 2 and 5 Notes 2 and 5 Notes 2 and 5 Notes 2 and 5 Notes 2 and 5 Notes 2 and 3 Notes 2 and 5 Notes 2 and 5

Table 9, Page 2

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at March 31,2020	Shares held as at March 31,2020	Shares held as at March 31,2020	Net profit (loss) of the investee for the three months ended March 31,2020	Investment income (loss) recognized by the Company for the three months ended March 31, 2020 (Note 1)	Footnote
				Balance as at March 31, 2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Book value
Yosun Industrial Corp. Yosun Industrial Corp. Yosun Industrial Corp. Yosun Industrial Corp. Sertek Incorporated Richpower Electronic Devices Co., Ltd. Richpower Electronic Devices Co., Ltd. Trigold Holdings Limited Trigold Holdings Limited WPG Investment Co., Ltd. WPG Investment Co., Ltd. WPG Investment Co., Ltd. WPG Investment Co., Ltd. WPG Investment Co., Ltd.	Sertek Incorporated Richpower Electronic Devices Co., Ltd. Eesource Corp. Pan-World Control Technologies, Inc. Sertek Limited Richpower Electronic Devices Co., Limited Richpower Electronic Devices Pte Ltd Genuine C&C Inc. Trigold (Hong Kong) Company Limited Trigold Holdings Limited AutoSys Co., Ltd. Beauteek Global Wellness Corporation Limited Pan-World Control Technologies, Inc. Eesource Corp.	Taiwan Taiwan Taiwan Taiwan Hong Kong Hong Kong Singapore Taiwan Hong Kong Taiwan Cayman Islands Hong Kong Taiwan Taiwan	Sales of electronic /electrical components Sales of electronic /electrical components Sales of electronic /electrical components, office machinery and equipment Wholesale of machinery Sales of electronic /electrical components Sales of electronic components Sales of electronic components Sales of electronic products and its peripheral equipment Holding company Investment company Holding company Community e- commerce trading platform and related services Wholesale of machinery Sales of electronic /electrical components, office machinery and equipment	1,616,722 $ 2,092,631 11,520 19,920 83,494 284,898 1,988 1,093,697 510,981 230 73,000 13,665 17,800 11,520	1,616,722 $ 2,092,631 11,520 19,920 83,494 284,898 1,988 1,093,697 510,981 230 73,000 13,665 17,800 11,520	94,828,100 85,000,000 1,080,000 1,660,000 19,500,000 63,000,000 10,000 79,569,450 130,200,000 10,000 5,000,000 354,400 1,565,218 1,080,000	100.00 100.00 20.00 24.24 100.00 100.00 100.00 100.00 100.00 0.01 19.40 23.08 22.86 20.00	1,970,237 $ 2,325,440 34,079 - 449,508 2,376,190 226,356 1,130,257 569,869 237 70,470 12,352 - 34,896	93,157 $ 69,992 10,035 - 2,030 45,101 1,442 24,943 7,974 24,567 3,195) ( 207) ( - 7,972	- $ - - - - - - - - - - - - -	Notes 2 and 5 Notes 2 and 5 Notes 2 and 3 Notes 2 and 3 Notes 2 and 5 Notes 2 and 5 Notes 2 and 5 Notes 2 and 5 Notes 2 and 5 Notes 2 and 3 Notes 2 and 3 Notes 2 and 3 Notes 2 and 3 Notes 2 and 3

Table 9, Page 3

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at March 31,2020	Shares held as at March 31,2020	Shares held as at March 31,2020	Net profit (loss) of the investee for the three months ended March 31,2020	Investment income (loss) recognized by the Company for the three months ended March 31, 2020 (Note 1)	Footnote
				Balance as at March 31, 2020	Balance as at December 31, 2019	Number of shares	Ownership (%)	Book value
WPG Investment Co., Ltd. Genuine C&C Inc. Genuine C&C Inc. Genuine C&C Inc.	Sunrise Technology Co., Ltd. Hoban Inc. Genuine C&C Holding Inc. (Seychelles) Sunrise Technology Co., Ltd.	Taiwan Taiwan Seychelles Taiwan	Manufacturing of computer and its peripheral equipment An E-commerce company which operates B2C and O2O businesses Holding company Manufacturing of computer and its peripheral equipment	50,000 $ 79,999 193,870 12,636	50,000 $ 79,999 193,870 12,636	3,279,800 8,000,000 6,500,000 1,682,151	10.67 100.00 100.00 5.47	45,871 $ 7,195 133,745 11,147	3,600) ($ 3,079) ( 1,187 3,600) (	- $ - - -	Notes 2 and 3 Notes 2 and 5 Notes 2 and 5 Notes 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

Table 10

WPG Holdings Limited and Subsidiaries

Information on investments in Mainland China

Three months ended March 31, 2020

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 three months ended March 31,2020	Amount remitted from Taiwan to Mainland China / Amount remitted back to Taiwan for the three months ended March 31,2020	Accumulated amount of remittance from Taiwan to Mainland China as of March 31, 2020	Net income of investee for the three months ended March 31, 2020	Ownership held by the Company (direct or indirect) Investment income (loss) recognized by the Company for the three monhts ended March 31, 2020 (Note 3)	Book value of investments in Mainland China as of March 31, 2020 (Note 6) Accumulated amount of investment income remitted back to Taiwan as of March 31,2020 Footnote
					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. Long-Think International (Shanghai) Limited Yosun Shanghai Corp. Ltd. Yosun South China Corp. Ltd.	Sales of electronic /electrical components Sales of computer software and electronic components Warehousing services Warehousing services / extra work Warehousing services Sales of electronic products Sales of electronic components Sales of electronic components and warehousing services Sales of electronic /electrical components	1,610,292 $ 142,901 35,189 42,550 63,825 226,097 14,089 267,282 136,452	1 1 1 1 1 1 1 1 1	1,763,264 $ 105,675 28,360 14,978 18,581 262,958 143,490 232,733 -	- $ - - - - - - - -	- $ - - - - - - - -	1,763,264 $ 105,675 28,360 14,978 18,581 262,958 143,490 232,733 -	13,984 $ 5,817) ( 3,888) ( 4,168) ( 517) ( 1,945) ( 453 1,722 1,132	100.00 13,984 $ 100.00 5,817) ( 49.00 1,905) ( 40.00 1,667) ( 29.40 152) ( 100.00 1,177) ( 100.00 453 100.00 1,722 100.00 1,132	2,302,733 $ - $ 716,718 - Note 4 74,948 - 24,317 - 39,736 - 172,107 - Note 7 26,887 - Note 2 356,032 - 201,537 -

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 three months ended March 31,2020	Amount remitted from Taiwan to Mainland China / Amount remitted back to Taiwan for the three months ended March 31,2020	Accumulated amount of remittance from Taiwan to Mainland China as of March 31, 2020	Net income of investee for the three months ended March 31, 2020	Investment income (loss) recognized by the Company for the three monhts ended March 31, 2020 (Note 3) Ownership held by the Company (direct or indirect)	Accumulated amount of investment income remitted back to Taiwan as of March 31,2020 Book value of investments in Mainland China as of March 31, 2020 (Note 6) Footnote
					Remitted to Mainland China	Remitted back toTaiwan
Qegoo Technology Co., Ltd. Peng Yu (Shanghai) Digital Technology Co., Ltd Trigolduo (Shanghai) Industrial Development Ltd. Trigold Tongle (Shanghai) Industrial Development Ltd.	Business e- commerce platform Sales of electronic products Children's theme park Children's theme park	55,916 $ 95,738 42,550 6,383	1 1 1 1	4,846 $ 184,350 29,785 -	- $ - - -	- $ - - -	4,846 $ 184,350 29,785 -	- $ 17,743 10,876) ( 1,608) (	15.00 - $ 100.00 10,736 70.00 4,607) ( 70.00 681) (	- $ - $ 163,485 - 5,393 - 479) ( - Note 8

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: Long View Technology Inc. held investments in Mainland China 100% ownership of Long-Think International Trading (Shanghai) Limited through third district transfer investment of British Virgin Islands-Long Think International (HK) Limitedas of August 31, 2012. The investment had been permitted by Investment Commission.
Note 3: Except for WPG China Inc., WPG China (SZ) Inc. and WPG C&C Shanghai Co., Ltd., the investment income/loss for the three months ended March 31, 2020 that was recognized by the Company was based on the financial statements reviewed by international accounting firm which has cooperative relationship with accounting firm in R.O.C. The remaining investment income/loss was measured based on unreviewed financial statements of investee during the same period. Note 4: 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 5: For paid-in capital, amount remitted from Taiwan to Mainland China/ amount remitted back to Taiwan for the three months ended March 31, 2020, accumulated amount of remittance from Taiwan to Mainland China as of March 31, 2020, book value of investments in Mainland China as of March 31, 2020, accumulated amount of investment income remitted back to Taiwan as of March 31, 2020, etc., the exchange rates used were USD 1: NTD 30.225, HKD 1: NTD 3.898 and RMB 1: NTD 4.255.
Note 6: The ending balance of investment was calculated based on combined ownership percentage held by the Company.
Note 7: 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 8: Trigold Tongle (Shanghai) Industrial Development Ltd. is a wholly-owned subsidiary of Trigolduo (Shanghai) Industrial Development Ltd.

Table 10, Page 2

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of March31,2020	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs (MOEA)	Ceiling on investments in Mainland China imposed bythe InvestmentCommission of 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 and its subsidiaries	2,003,027 $ 378,338 13,049 253,437 4,846 571,767	2,104,237 $ 362,206 18,974 536,917 14,762 571,767	39,526,751 $ 16,240,362 4,399,511 5,454,135 255,879 710,053

(1) Exchange rates as of March 31, 2020 were USD 1: NTD 30.225, HKD 1 : NTD 3.898 and RMB 1 : NTD 4.255.

(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

March 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

AI assistant

WPG — Interim / Quarterly Report 2020

52368_rns_2020-12-21_314fd202-4628-4785-bd30-b52206881d82.pdf

WPG HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND REVIEW REPORT OF INDEPENDENT ACCOUNTANTS

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

WPG HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2020, DECEMBER 31, 2019 AND MARCH 31, 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

WPG HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

MARCH 31, 2020, DECEMBER 31, 2019 AND MARCH 31, 2019

WPG HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE MONTHS ENDED MARCH 31, 2020 AND 2019

WPG HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE MONTHS ENDED MARCH 31, 2020 AND 2019

WPG HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY THREE MONTHS ENDED MARCH 31, 2020 AND 2019 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS) (REVIEWED, NOT AUDITED)

WPG HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2020 AND 2019

WPG HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS THREE MONTHS ENDED MARCH 31, 2020 AND 2019

WPG HOLDINGS LIMITED AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS THREE MONTHS ENDED MARCH 31, 2020 AND 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT AS OTHERWISE INDICATED) (REVIEWED, NOT AUDITED)

1. HISTORY AND ORGANIZATION

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

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”)

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

B. Subsidiaries included in the consolidated financial statements:

Summarized financial information of the subsidiaries: (a) Balance sheets

(b) Statements of comprehensive income

(4) Employee benefits

A. Short-term employee benefits

(5) Income tax

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

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

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

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

(4) Financial assets at amortized cost

12(2).

(5) Notes and accounts receivable

(6) Transfer of financial assets

(7) Other receivables

(8) Inventories

(9) Investments accounted for under the equity method

A. Details of investments accounted for under the equity method:

(10) Property, plant and equipment

(11) Leasing arrangements-lessee

(12) Investment property

(13) Intangible assets

(14) Prepayments for investments

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

(16) Short-term borrowings

(17) Short-term notes and bills payable

- (18) Long term borrowings

(19) Other current liabilities

(20) Pensions

A. Defined benefit plans

(22) Capital surplus

(23) Retained earnings

(24) Other equity items

(25) Operating revenue

(26) Other income

(27) Other gains and losses

(28) Finance costs

(31) Income tax

(32) Earnings per share

(33) Supplemental cash flow information

(34) Changes in liabilities from financing activities

7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

(2) Names of related parties and relationship

(3) Significant transactions and balances with related parties

A. Operating revenues

B. Purchases

C. Receivables from related parties

D. Other receivables

E. Payables to related parties

F. Endorsements and guarantees provided to related parties

WPG Interim / Quarterly Report 2020