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WPG Interim / Quarterly Report 2020

Dec 21, 2020

52368_rns_2020-12-21_96f243c2-c92e-4904-b7ea-971fd24cd7c6.pdf

Interim / Quarterly Report

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

SEPTEMBER 30, 2020 AND 2019

review 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 review report and financial statements shall prevail. 

~1~

REVIEW REPORT OF INDEPENDENT AUDITORS 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 September 30, 2020 and 2019, and the related consolidated statements of comprehensive income for the three months and nine months then ended, as well as the related consolidated statements of changes in equity and of cash flows for the nine 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 the equity method were not reviewed by independent auditors. Those statements reflect total assets (including investments accounted for using the equity method) of NT$15,518,950 thousand and NT$15,704,980 thousand, both constituting 7% of the consolidated total assets, and total liabilities of NT$8,827,206 thousand and NT$7,070,015 thousand, both constituting 5% of the consolidated total liabilities as at September 30, 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 

~2~

and joint ventures accounted for using the equity method) of NT$7,537 thousand, NT$64,192 thousand, NT$275,390 thousand and NT$181,447 thousand, constituting 1%, 5%, 7% and 4% of the consolidated total comprehensive income for the three months and nine 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 auditors, 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 September 30, 2020 and 2019, and of its consolidated financial performance for the three months and nine months then ended and its consolidated cash flows for the nine 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 November 10, 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 auditors are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

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

~3~

WPG HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2020, DECEMBER 31, 2019 AND SEPTEMBER 30, 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

(THE CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2020 AND 2019 ARE REVIEWED, NOT AUDITIED)

==> picture [515 x 598] intentionally omitted <==

----- Start of picture text -----

September 30, 2020 December 31, 2019 September 30, 2019
Assets Notes Amount % Amount % Amount %
Current assets
Cash and cash equivalents 6(1) $ 12,953,214 6 $ 9,992,582 4 $ 9,600,092 5
Financial assets at fair value through 6(2)
profit or loss - current 94,774 - 339,649 - 33,667 -
Financial assets at amortized cost - 6(4) and 8
current 169,284 - 84,055 - 200,244 -
Notes receivable, net 6(5) 2,432,617 1 1,977,097 1 1,763,366 1
Accounts receivable, net 6(5) 110,952,001 47 110,656,082 48 105,652,981 48
Accounts receivable - related parties, 7(3)
net 128,277 - 98,292 - 156,792 -
Other receivables 6(7) 12,910,945 6 11,428,975 5 13,112,599 6
Other receivables - related parties 7(3) 3,510 - 1,208 - 13,847 -
Current income tax assets 57,306 - 27,980 - 29,798 -
Inventory 6(8) 56,721,006 24 67,721,637 29 69,858,941 32
Prepayments 3,109,626 1 2,242,687 1 1,936,501 1
Other current assets 1,167,799 1 1,396,017 1 458,991 -
Total current assets 200,700,359 86 205,966,261 89 202,817,819 93
Non-current assets
Financial assets at fair value through 6(2) and 8
profit or loss non-current 1,345,022 1 1,315,509 1 1,333,504 1
Financial assets at fair value through 6(3)
other comprehensive income -
non-current 529,378 - 32,035 - 32,035 -
Financial assets at amortized cost - 6(4)
non-current 329,420 - - - - -
Investments accounted for using the 6(9)
equity method 10,288,881 4 586,142 - 594,743 -
Property, plant and equipment 6(10) and 8 10,936,873 5 5,735,417 3 5,724,977 3
Right-of-use assets 6(11) 1,602,271 1 1,129,079 1 1,223,361 1
Investment property - net 6(12) and 8 1,038,246 - 1,060,115 - 1,072,516 -
Intangible assets 6(13) 5,669,875 2 5,568,851 2 5,569,085 2
Deferred income tax assets 531,969 - 506,897 - 488,372 -
Prepayments for investments 6(14) 1,245,243 1 8,142,688 4 - -
Other non-current assets 6(15) 232,263 - 303,826 - 312,198 -
Total non-current assets 33,749,441 14 24,380,559 11 16,350,791 7
TOTAL ASSETS $ 234,449,800 100 $ 230,346,820 100 $ 219,168,610 100
----- End of picture text -----

(Continued) 

~4~

WPG HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2020, DECEMBER 31, 2019 AND SEPTEMBER 30, 2019

(EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS)

(THE CONSOLIDATED BALANCE SHEETS AS OF SEPTEMBER 30, 2020 AND 2019 ARE REVIEWED, NOT AUDITIED)

==> picture [525 x 588] intentionally omitted <==

----- Start of picture text -----

September 30, 2020 December 31, 2019 September 30, 2019
Liabilities and Equity Notes Amount % Amount % Amount %
Current liabilities
Short-term borrowings 6(16) $ 56,164,773 24 $ 68,891,614 30 $ 57,676,703 26
Short-term notes and bills payable 6(17) 4,896,077 2 5,555,424 2 4,696,502 2
Financial liabilities at fair value through 6(2)
profit or loss - current 4,458 - 16,051 - 5,909 -
Notes payable 131,140 - 34,642 - 19,103 -
Accounts payable 69,065,579 30 63,588,170 28 63,682,660 29
Accounts payable - related parties 7(3) 63,970 - 653 - 4 -
Other payables 6,447,488 3 5,697,289 2 5,234,632 3
Current income tax liabilities 998,813 - 1,310,711 1 1.255,724 1
Lease liabilities - current 410,317 - 416,902 - 418,900 -
Other current liabilities 6(18)(19) 4,726,690 2 11,447,611 5 11,066,740 5
Total current liabilities 142,909,305 61 156,959,067 68 144,056,877 66
Non-current liabilities
Long-term borrowings 6(18) 24,646,500 11 7,330,788 3 7,645,042 4
Deferred income tax liabilities 502,549 - 499,268 - 506,229 -
Lease liabilitie s non-current 1,245,903 1 740,641 - 832,159 -
Other non-current liabilities 996,838 - 849,961 1 845,962 -
Total non-current liabilities 27,391,790 12 9,420,658 4 9,829,392 4
Total liabilities 170,301,095 73 166,379,725 72 153,886,269 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 8
Preference stock 2,000,000 1 2,000,000 1 2,000,000 1
Capital reserve 6(22)
Capital reserve 27,683,192 12 27,456,298 12 27,456,298 12
Retained earnings 6(23)
Legal reserve 6,667,417 3 6,021,073 3 6,021,073 3
Special reserve 5,420,694 2 2,602,682 1 2,602,682 1
Unappropriated earnings 12,480,585 5 14,022,230 6 12,276,836 6
Other equity interest
Other equity interest 6(24) ( 7,405,364) ( 3) ( 5,420,694) ( 2) ( 2,351,353) ( 1)
Total equity attributable to owners of
parent 63,637,092 27 63,472,157 28 64,796,104 30
Non-controlling interest 4 511,613 - 494,938 - 486,237 -
Total equity 64,148,705 27 63,967,095 28 65,282,341 30
Significant contingent liabilities and 7(3) and 9
unrecognized contract commitments
Significant events after the balance 11
sheet date
TOTAL LIABILITIES AND
EQUITY $ 234,449,800 100 $ 230,346,820 100 $ 219,168,610 100
----- End of picture text -----

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

~5~
WPG HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT EARNINGS PER SHARE DATA) (REVIEWED, NOT AUDITED) Three months ended September 30
Nine months ended September 30		 2020
2019
2020
2019		 Items
Notes
Amount
%
Amount
%
Amount
%
Amount
%		 Operating revenue
6(25) and 7(3)
$ 169,986,962 100 $ 140,820,895 100 $ 450,842,215 100 $ 381,828,772 100		 Operating costs
6(8) and 7(3)
( 163,829,828 ) (
97 )( 134,841,633 ) (
96 )( 433,524,898 ) (
96 )( 365,188,480 ) (
96 )		 Gross profit
6,157,134
3
5,979,262
4
17,317,317
4
16,640,292
4		 Operating expenses
6(30)(31) and 7(3)		 Selling and marketing expenses
(
2,402,701 ) (
1 ) (
2,373,049 ) (
1 ) (
6,687,247 ) (
2 ) (
6,640,885 ) (
1 )		 General and administrative expenses
(
1,005,331 ) (
1 ) (
1,029,154 ) (
1 ) (
2,910,118 ) (
1 ) (
2,856,237 ) (
1 )		 Expected credit impairment gain (loss)
9,578
-(
27,334 )
-(
195,575 )
-
54,707
-		 Total operating expenses
(
3,398,454 ) (
2 )(
3,429,537 ) (
2 )(
9,792,940 ) (
3 )(
9,442,415 ) (
2 )		 Operating profit
2,758,680
1
2,549,725
2
7,524,377
1
7,197,877
2		 Non-operating income and expenses Interest income
6(26)
7,015
-
11,496
-
30,654
-
42,676
-		 Other income
6(27)
51,188
-
77,768
-
180,084
-
172,075
-		 Other gains and losses
6(28)
146,735
-
147,612
-
561,711
-
402,608
-		 Finance costs
6(29)
(
425,398 )
- (
573,066 ) (
1 ) (
1,507,297 )
- (
1,761,837 )
-		 Share of profit of associates and joint ventures accounted for using the equity method
268,823
-
5,370
-
599,715
-
16,419
-		 Total non-operating income and expenses
48,363
-(
330,820 ) (
1 )(
135,133 )
-(
1,128,059 )
-		 Income before income tax
2,807,043
1
2,218,905
1
7,389,244
1
6,069,818
2		 Income tax expense
6(32)
(
521,857 )
-(
420,791 )
-(
1,297,593 )
-(
1,316,573 ) (
1 )		 Consolidated net income
$
2,285,186
1 $
1,798,114
1 $
6,091,651
1 $
4,753,245
1
WPG HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS, EXCEPT EARNINGS PER SHARE DATA) (REVIEWED, NOT AUDITED) Three months ended September 30
Nine months ended September 30		 2020
2019
2020
2019		 Items
Notes
Amount
%
Amount
%
Amount
%
Amount
%		 Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss Unrealized gains from investments in equity instruments measured
6(3)(24)		 at fair value through other comprehensive income
$
41,427
- $
-
- $
48,971
- $
-
-		 Share of other comprehensive income of associates and joint
6(24)		 ventures accounted for using the equity method that will not be reclassified to profit or loss
51,429
-
-
-
1,419,060
1
-
-		 Other comprehensive income that will not be reclassified to profit or loss
92,856
-
-
-
1,468,031
1
-
-		 Components of other comprehensive income that will be reclassified to profit or loss Exchange differences on translation of foreign financial statements
(
1,547,501 ) (
1 ) (
424,177 )
- (
3,177,719 ) (
1 )
249,813
-		 Share of other comprehensive (loss) income of associates and joint
6(24)		 ventures accounted for using the equity method
(
86,562 )
- (
5,243 )
- (
283,162 )
-
5,717
-		 Income tax related to components of other comprehensive income
6(32)		 (loss) that will be reclassified to profit or loss
475
-
4,621
-
788
-
3,608
-		 Other comprehensive (loss) income that will be reclassified to profit or loss
(
1,633,588 ) (
1 )(
424,799 )
-(
3,460,093 ) (
1 )
259,138
-		 Total other comprehensive income (loss)
($
1,540,732 ) (
1 ) ( $
424,799 )
- ( $
1,992,062 )
- $
259,138
-		 Total comprehensive income
$
744,454
- $
1,373,315
1 $
4,099,589
1 $
5,012,383
1		 Consolidated net income attributable to: Owners of the parent
$
2,257,062
1 $
1,784,767
1 $
6,036,162
1 $
4,718,043
1		 Non-controlling interest
28,124
-
13,347
-
55,489
-
35,202
-		 $
2,285,186
1 $
1,798,114
1 $
6,091,651
1 $
4,753,245
1		 Comprehensive income attributable to: Owners of the parent
$
715,386
- $
1,367,692
1 $
4,051,492
1 $
4,969,372
1		 Non-controlling interest
29,068
-
5,623
-
48,097
-
43,011
-		 $
744,454
- $
1,373,315
1 $
4,099,589
1 $
5,012,383
1		 Earnings per share (in dollars)
6(33)		 Basic earnings per share
$
1.34 $
1.06 $
3.53 $
2.81		 Diluted earnings per share
$
1.33 $
1.06 $
3.52 $
2.81		 The accompanying notes are an integral part of these consolidated financial statements.
WPG HOLDINGS LIMITED AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019 NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS) (REVIEWED, NOT AUDITED) Equity attributable to owners ofthe parent Share Capital
RetainedEarnings
Other Equity Interest		 Common stock
Preference stock
Capital reserve
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
Total
Non-controlling
interest
Total equity		 $ 16,790,568
$
-
$ 19,454,882
$ 5,274,872 $ 4,124,936 $ 11,316,193 ( $ 2,596,682 ) ( $
6,000 ) $ 54,358,769 $
465,226 $ 54,823,995		 -
-
-
-
-
4,718,043
-
-
4,718,043
35,202
4,753,245		 -
-
-
-
-
-
251,329
-
251,329
7,809
259,138		 -
-
-
-
-
4,718,043
251,329
-
4,969,372
43,011
5,012,383		 -
-
-
746,201
- (
746,201 )
-
-
-
-
-		 -
-
-
- (
1,522,254 )
1,522,254
-
-
-
-
-		 -
-
-
-
- (
4,533,453 )
-
- (
4,533,453 )
- (
4,533,453 )		 -
2,000,000
7,994,638
-
-
-
-
-
9,994,638
-
9,994,638		 -
-
6,778
-
-
-
-
-
6,778
-
6,778		 -
-
-
-
-
-
-
-
- (
22,000 ) (
22,000 )		 $ 16,790,568
$ 2,000,000
$ 27,456,298
$ 6,021,073 $ 2,602,682 $ 12,276,836 ( $ 2,345,353 ) ( $
6,000 ) $ 64,796,104 $
486,237 $ 65,282,341		 $ 16,790,568
$ 2,000,000
$ 27,456,298
$ 6,021,073 $ 2,602,682 $ 14,022,230 ( $ 5,414,694 ) ( $
6,000 ) $ 63,472,157 $
494,938 $ 63,967,095		 -
-
-
-
-
6,036,162
-
-
6,036,162
55,489
6,091,651		 -
-
-
-
-
- (
3,452,701 )
1,468,031 (
1,984,670 ) (
7,392 ) (
1,992,062 )		 -
-
-
-
-
6,036,162 (
3,452,701 )
1,468,031
4,051,492
48,097
4,099,589		 -
-
-
646,344
- (
646,344 )
-
-
-
-
-		 -
-
-
-
2,818,012 (
2,818,012 )
-
-
-
-
-		 -
-
-
-
- (
4,029,736 )
-
- (
4,029,736 )
- (
4,029,736 )		 -
-
-
-
- (
115,068 )
-
- (
115,068 )
- (
115,068 )		 -
-
226,894
-
-
31,353
-
-
258,247
-
258,247		 -
-
-
-
-
-
-
-
- (
31,422 ) (
31,422 )		 $ 16,790,568
$ 2,000,000
$ 27,683,192
$ 6,667,417 $ 5,420,694 $ 12,480,585 ( $ 8,867,395 ) $ 1,462,031 $ 63,637,092 $
511,613 $ 64,148,705		 The accompanying notes are an integral part of these consolidated financial statements. ~8~
Notes 6(24) 6(23) 6(21) 6(22) 6(24) 6(23) 6(22)
Nine months ended September 30, 2019 Balance at January 1, 2019 Total consolidated profit Net other comprehensive income Total comprehensive income Appropriation and distribution of 2018 retained earnings Legal reserve Reversal of special reserve Cash dividends for common stock Issuance of preference stock Changes in equity of associates and joint ventures accounted for using the equity method Changes in non-controlling interests Balance atSeptember30, 2019 Nine months ended September 30, 2020 Balance at January 1, 2020 Total consolidated profit Net other comprehensive (loss) income Total comprehensive income (loss) Appropriation and distribution of 2019 retained earnings Legal reserve Special reserve Cash dividends for common stock Cash dividends for preferred stock Changes in equity of associates and joint ventures accounted for using the equity method Changes in non-controlling interests Balance atSeptember30, 2020

WPG HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS NINE MONTHS ENDED SEPTEMBER 30, 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
Dividend income
Other income
Share of profit of associates and joint ventures
accounted for using the equity method
Loss on disposal of property, plant and equipment
Loss on lease modification
Loss (gain) on disposal of investment
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 (outflow) generated from operations
Interest paid
Income tax paid
Interest received
Income tax refund
Dividends received
Net cash provided by (used in) operating activities		 Nine months ended September 30,
Notes
2020
2019
$
7,389,244
$
6,069,818
6(30)
553,275
543,348
6(13)(30)
47,770
12,670
195,575
(
54,707 )
6(29)
1,322,916
1,609,706
6(28)
(
158,989 )
(
65,592 )
6(26)
(
30,654 )
(
42,676 )
6(27)
(
43,741 )
(
13,408 )
(
6,052 )
-
(
599,715 )
(
16,419 )
6(28)
320
1,719
6(28)
693
-
6(28)
26,975
(
213 )

371,706
498
(
455,520 )
1,121,517
(
513,544 )
(
10,340,233 )
(
29,985 )
(
74,202 )
(
1,482,439 )
(
4,579,453 )
(
2,302 )
(
12,237 )
10,999,819
(
5,085,974 )
(
866,939 )
(
429,269 )
(
20,280 )
17,273
96,498
(
16,394 )
5,477,409
10,520,756
63,317
(
397 )
791,750
(
63,792 )
(
1,490,927 )
894,910
(
26,734 )
(
64,846 )
21,609,446
(
67,597 )
(
1,364,466 )
(
1,645,255 )
(
1,744,901 )
(
825,208 )
31,123
41,214
229
19,786
445,396
65,069

18,976,827
(
2,411,991 )

(Continued) 

~9~

WPG HOLDINGS LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2020 AND 2019 (EXPRESSED IN THOUSANDS OF NEW TAIWAN DOLLARS) (REVIEWED, NOT AUDITED)

Nine months ended Nine months ended September 30, September 30,
Notes 2020 2019
Cash flows from investing activities
Acquisition of financial assets at fair value through other
comprehensive income - non-current ( $ 455,451 ) $ -
Acquisition of property, plant and equipment and intangible
assets 6(34) ( 5,566,848 ) ( 244,397 )
Proceeds from disposal of property, plant and equipment and
intangible assets 2,122 1,589
Increase in guarantee deposits paid ( 16,976 ) ( 36,461 )
Decrease in guarantee deposits paid 7,986 31,393
Decrease in other financial assets - current 248,498 39,320
Increase in other financial assets - non-current ( 1,636 ) ( 1 )
Increase in prepayments for investments 6(14) ( 1,214,193 ) -
Decrease (increase) in other non-current assets 90,958 ( 5,605 )
Acquisition of financial assets at fair value through profit or
loss - non-current ( 26,910 ) ( 102,096 )
Proceeds from capital reduction of financial assets at fair
value through profit or loss 21,833 17,533
Proceeds from capital reduction of financial assets at fair
value through other comprehensive income 7,079 -
Proceeds from disposal of financial assets at fair value
through profit or loss - non-current - 14,971
Decrease in financial assets at amortized cost - current 7,919 10,888
Increase in financial assets at amortized cost - current ( 96,522 ) ( 11,540 )
Increase in financial assets at amortised cost - non-current ( 329,420 ) -
Net cash used in investing activities ( 7,321,561 ) ( 284,406 )
Cash flows from financing activities
Principal repayment of lease liability 6(35) ( 316,331 ) ( 333,215 )
Increase in short-term borrowings 6(35) 433,565,133 417,871,446
Decrease in short-term borrowings 6(35) ( 446,291,974 ) ( 417,416,179 )
Increase in long-term borrowings (including current portion 6(35)
of long-term liabilities) 25,802,919 2,110,697
Decrease in long-term borrowings (including current portion
6(35)
of long-term liabilities) ( 13,717,201 ) ( 2,605,138 )
Increase in short-term notes and bills payable 6(35) 31,303,127 26,345,815
Decrease in short-term notes and bills payable 6(35) ( 31,962,474 ) ( 26,606,340 )
Increase in guarantee deposits received 192,057 9,492
Decrease in guarantee deposits received ( 15,983 ) ( 4,456 )
Issuance of preference stock 6(21) - 9,994,638
Cash dividends paid 6(23) ( 4,144,804 ) ( 4,533,453 )
Change in non-controlling interests ( 31,422 ) ( 22,000 )
Net cash (used in) provided by financing activities ( 5,616,953 ) 4,811,307
Effect of exchange rate changes on cash and cash equivalents ( 3,077,681 ) 368,294
Net increase in cash and cash equivalents 2,960,632 2,483,204
Cash and cash equivalents at beginning of period 9,992,582 7,116,888
Cash and cash equivalents at end of period $ 12,953,214 $ 9,600,092

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

~10~

WPG HOLDINGS LIMITED AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS NINE MONTHS ENDED SEPTEMBER 30, 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 Compan res 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 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 Compa 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 a

  • (2) The Company was organized to create the management mechanism of the group, supervise the subsidiaries, integrate the whole group and improve operation 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 September 30, 2020, $25,000,000 (certain shares 

~11~

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

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

These consolidated financial statements were reported to the Board of Directors on November 10, 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 endorsed by the Finan

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

as follows:
New Standards, Interpretations and Amendments
sclosure initiative-definition
of materi
Amendments to IFRS 3,
Definitio
Amendments to IFRS 9, IAS 39 a
nterest rate
benchmark reform
Amendment to IFRS 16,
Covid-19-related rent concessions		 Effective date by
International Accounting
Standards Board
January 1, 2020
January 1, 2020
January 1, 2020
June 1, 2020(Note)

Note: Earlier application from January 1, 2020 is allowed by the FSC.

Except for the following, the above standards and interpretations have no significant impact to the Group s financial condition and financial performance based on the Group s assessment. Amendment to IFRS 16, Covid-19-related rent concessions

This amendment provides a practical expedient for lessees from assessing whether a rent concession related to COVID-19, and that meets all of the following conditions, is a lease modification:

  • A. Changes in lease payments result in the revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change;

  • B. Any reduction in lease payments affects only payments originally due on or before June 30, 2021; and

  • C. There is no substantive change to other terms and conditions of the lease.

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

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

~12~

as follows:

as follows:
New Standards, Interpretations and Amendments Effective date by
International Accounting
Standards Board

Amendments to IFRS 4,
Extension of the temporary exemption
from applying IFRS 9		 January 1, 2021

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

(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 Effective date by
International Accounting
Standards Board

Amendments to IFRS 3,
Reference to the conceptual framework
Amendments to IFRS 10 and IAS 28
between an investor and its associate or joint venture
Amendments to IFRS 17,
Insurance contracts
Am
lassification of liabilities as current or
non-
Amendments to IAS 16,
Property, plant and equipment: proceeds
before intended use
Amendments to IAS 37,
Onerous contracts - cost of fulfilling a
contract
Annual improvements to IFRS Standards 2018 - 2020
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16,
Interest Rate Benchmark Reform - Phase 2		 January 1, 2022
To be determined by
International Accounting
Standards Board
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2022
January 1, 2022
January 1, 2022
January 1, 2021

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

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 Preparation of Financial Reports by Securities Issu

  • and the International Accounting Standards terim financial reportin 

~13~

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 ) requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of app 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.

  • 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		 Name of subsidiary
World Peace Industrial
Co., Ltd.
Silicon Application
Corporation
WPG Korea Co., Ltd.
WPG Electronics Ltd.
WPG International (CI)
Limited		 Main business
activities
Agent and sales of
electronic / electrical
components
Sales of computer
software and
electronic products
Agent and sales of
electronic / electrical
components

Holding company		 Ownership (%)
September
30, 2020
December 31,
2019
September
30, 2019
Description

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 11
and 12
100.00
100.00
100.00
Notes 11
and 12		 
~14~
Name of investor
WPG Holdings
Limited
WPG Holdings
Limited
WPG Holdings
Limited
WPG Holdings
Limited
WPG Investment
Co., Ltd.
WPG Investment
Co., Ltd.
Laas Holdings
(Samoa) Limited
Laas Holdings (HK)
Limited
World Peace
Industrial Co.,
Ltd.
World Peace
Industrial Co.,
Ltd.
World Peace
Industrial Co.,
Ltd.
World Peace
Industrial Co.,
Ltd.
AECO Technology
Co., Ltd.
Teco Enterprise
Holding (B.V.I.)
Co., Ltd.
World Peace
International
(BVI) Ltd.
Prime Future
Technology
Limited		 Name of subsidiary
Main business
activities
Asian Information
Technology Inc.
Sales of electronic /
electrical components
Yosun Industrial Corp.
WPG Investment Co.,
Ltd.
Investment company
Trigold Holdings
Limited
Holding company
Trigold Holdings
Limited
Laas Holdings (Samoa)
Limited
Laas Holdings (HK)
Limited
Lass (DG) Limited
Intelligent
warehousing
enhanced services
World Peace
International (BVI)
Ltd.
Holding company
WPI Investment
Holding (BVI)
Company Ltd.
Longview Technology
Inc.
Agent and sales of
electronic / electrical
components
AECO Technology Co.,
Ltd.
Teco Enterprise
Holding (B.V.I.) Co.,
Ltd.
Investment company
AECO Electronic Co.,
Ltd.
Trading of electronic
/ electrical products
Prime Future
Technology Limited
Holding company
World Peace
International Pte.
Ltd.		 Ownership (%)
September
30, 2020
December 31,
2019
September
30, 2019
Description
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
Notes 11
and 12
60.50
60.50
60.50
0.01
0.01
0.01
100.00
0.00
0.00
Notes 15
100.00
0.00
0.00
Notes 15
100.00
0.00
0.00
Note 17
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
100.00
100.00
100.00
Notes 11
and 12		 
~15~
Name of investor
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
WPI International
(Hong Kong)
Limited
Longview
Technology Inc.
Longview
Technology Inc.		 Name of subsidiary
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
AIO Components
Company Limited
Longview Technology
GC Limited
Long-Think
International Co.,
Ltd.		 Main business
activities
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
Agent and sales of
electronic / electrical
components
Holding company
Agent and sales of
electronic / electrical
components		 Ownership (%)
September
30, 2020
December 31,
2019
September
30, 2019
Description

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
0.00
100.00
100.00
Notes 11, 12
and 16
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
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
WPG International
(CI) Limited
WPG International
(CI) Limited		 Name of subsidiary
Main business
activities
Long-Think
International (Hong
Kong) Limited
Agent and sales of
electronic / electrical
components
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, hardware
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
WPG Americas Inc.
Agent and sales of
electronic / electrical
components
WPG South Asia Pte.
Ltd.
Sales of electronic /
electrical products		 Ownership (%)
September
30, 2020
December 31,
2019
September
30, 2019
Description

100.00
100.00
100.00
Notes 11
and 12
0.00
100.00
100.00
Notes 11, 12
and 14
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

95.69
95.69
95.69
Note 2
100.00
100.00
100.00
Notes 11
and 12		 
~17~
Name of investor
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.
Asian Information
Technology Inc.
Asian Information
Technology Inc.
Frontek Technology
Corporation		 Name of subsidiary
Main business
activities
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.
Frontek Technology
Corporation
Fame Hall International
Co., Ltd.
Investment company
Frontek International
Limited		 Ownership (%)
September
30, 2020
December 31,
2019
September
30, 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
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
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		 
~18~
Name of investor
Name of subsidiary
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.
Trigold Holdings
Limited
Genuine C&C Inc.
Trigold Holding
Limited
Trigold (Hong Kong)
Company Limited
Trigold (Hong
Kong) Company
Limited
Peng Yu (Shanghai)
Digital Technology
Co., Ltd.		 Ownership (%)
Main business
activities
September
30, 2020
December 31,
2019
September
30, 2019
Description
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
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		 
~19~
Name of investor
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
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		 Main business
activities
Sales of electronic/
electrical products
amusement park
An E-commerce
company which
operates B2C and
O2O businesses
Holding company
Sales of
electronic/electrical
products		 Ownership (%)
September
30, 2020
December 31,
2019
September
30, 2019
Description
100.00
100.00
100.00
70.00
70.00
70.00
Notes 8, 11
and 12
100.00
100.00
100.00
Notes 8, 11
and 12
100.00
100.00
100.00
Notes 11
and 12
100.00
100.00
100.00
Notes 11
and 12
0.00
0.00
0.00
Note 10
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 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. 

~20~

  • 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 September 30, 2019 were not reviewed by independent auditors since it did not meet the definition of significant subsidiaries.

  • Note 12: The financial statements as of September 30, 2020 were not reviewed by independent auditors since it did not meet the definition of significant subsidiaries.

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

  • Note 14: It was liquidated in August 2020.

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

  • Note 16: The subsidiary was deregistered in September 2020 and is in the process of dissolution and liquidation.

  • Note 17: The subsidiary was established in August 2020.

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

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

  • E. Significant restrictions: None.

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

As of September 30, 2020, December 31, 2019 and September 30, 2019, the non-controlling interest amounted to $511,613, $494,938 and $486,237, 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
September 30, 2020
Amount
Ownership
$ 472,319 39.49%
December
31, 2019
Ownership
39.49%
September 30, 2019

Amount
$ 472,319
Amount
$ 448,520
Amount
$ 436,996
Ownership

39.49%

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

~21~

Summarized financial information of the subsidiaries:

(a) Balance sheets

Balance sheets
Trigold Holdings Limited and its subsidiaries
September 30, 2020 December 31, 2019 September 30, 2019
Current assets $ 5,492,219 $ 6,471,223 $ 7,588,204
Non-current assets 350,509 351,812 332,610
Current liabilities ( 4,416,504) ( 5,420,391) ( 6,568,089)
Non-current liabilities ( 230,141) ( 260,583) ( 236,638)
Total net assets 1,196,083 1,142,061 1,116,087
Less: Non-controlling
interest ( 340) ( 7,126) ( 9,127)
Equity attributable to
owners of the parent
company $ 1,195,743 $ 1,134,935 $ 1,106,960
Statements of comprehensive income
Trigold Holdings Limited and its subsidiaries
Three months ended September 30,
2020 2019
Revenue $ 5,794,677 $ 4,990,445
Profit before tax 116,409 53,773
Income tax expense ( 38,038) ( 20,352)
Profit for the period 78,371 33,421
Other comprehensive loss, net of tax 4,136 ( 18,873)
Total comprehensive income $ 82,507 $ 14,548
Total comprehensive loss attributable
to non-controlling interest ($ 1,299) ($ 1,460)
Dividends paid to non-controlling
interests		 $ - $ -
Trigold Holdings Limited and its subsidiaries
Nine months ended September 30,
2020 2019
Revenue $ 13,891,679 $ 11,625,045
Profit before tax 217,922 131,126
Income tax expense ( 68,669) ( 38,821)
Profit for the period 149,253 92,305
Other comprehensive loss, net of tax ( 11,359) ( 14,708)
Total comprehensive income $ 137,894 $ 77,597
Total comprehensive loss attributable
to non-controlling interest ($ 6,786) ($ 4,349)
Dividends paid to non-controlling
interests		 $ 31,422 $ 22,000

(b) Statements of comprehensive income

~22~

(c) Statements of cash flows

Statements of cash flows
Trigold Holdings Limited and its subsidiaries
Nine months ended September 30,
2020 2019
Net cash provided by (used in)
operating activities $ 1,634,298 ($ 2,224,784)
Net cash used in investing activities ( 38,869) ( 43,291)
Net cash (used in) provided by
financing activities ( 1,303,617) 1,832,756
Effect of exchange rates on cash and
cash equivalents ( 5,937) ( 863)
Increase (decrease) in cash and cash
equivalents 285,875 ( 436,182)
Cash and cash equivalents, beginning
of period 394,001 911,837
Cash and cash equivalents, end of
period		 $ 679,876 $ 475,655

(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 

~23~

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. compensation remuneration compensation and direct 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.

  • (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 

~24~

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 recognized based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax 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 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 G 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 

~25~

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

  • B. Valuation of provision for allowance for accounts receivable

  • In the process of assessing uncollectible accounts, the Group must use judgements and assumptions to determine the collectability of accounts receivable. The collectability is affected by various factor nancial conditions 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

 September 30, 2020
$ 4,571
2,407,904
9,663,252
877,487

$ 12,953,214
 December 31, 2019

$ 4,444
806,634
8,745,631
435,873

$ 9,992,582
 September 30, 2019
$ 4,838
1,548,772
6,344,080
1,702,402
$ 9,600,092

  • 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. 

~26~

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

Items

Current items:
Financial assets mandatorily
measured at fair value
through profit or loss
Listed stocks

Beneficiary certificates

Derivatives


Valuation adjustment


Financial liabilities held for
trading
Derivatives

Non-current items:
Financial assets mandatorily
measured at fair value
through profit or loss
Listed stocks

Emerging stocks

Unlisted stocks


Valuation adjustment
(
 September 30, 2020
$ 52,297
-
9,705

62,002
32,772

$ 94,774

$ 4,458

$ 119,257
49,605
1,460,455

1,629,317
284,295)
(
$ 1,345,022
 December 31, 2019

$ 22,547
300,000
2,513

325,060
14,589

$ 339,649

$ 16,051

$ 110,307
49,605
1,461,216

1,621,128
305,619)
(
$ 1,315,509
 September 30, 2019
$ 22,547
-
2,381
24,928
8,739
$ 33,667
$ 5,909
$ 110,307
69,605
1,472,190
1,652,102
318,598)
$ 1,333,504
  • 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:

Financial assets mandatorily measured at
fair value through profit or loss
Equity instruments

Derivatives



Financial assets mandatorily measured at
fair value through profit or loss
Equity instruments

Derivatives

 Three months ended September 30,
2020
2019
$ 16,567 $ 17,323
24,987
21,121
$ 41,554
$ 38,444
Nine months ended September 30,
2020
2019
$ 38,749 $ 8,685
120,240
56,907
$ 158,989
$ 65,592

2020

$ 38,749
120,240

$ 158,989
 
~27~
  • B. The Group entered into contracts relating to derivative financial assets which were not accounted for under hedge accounting. The information is listed below:
accounted for under hedge accounting. The information is listed below: The information is listed below:
Derivative instruments
Current items:
Forward foreign exchange contracts
- Sell
- Sell-SWAP
- Buy
Futures
Derivative instruments
Current items:
Forward foreign exchange contracts
- Sell
- Sell-SWAP
- Buy
Futures
September 30, 2020

Contract amount
(notional principal)
(Note)
Contract period
RMB 40,000
2020.07.06~2020.12.14
EUR
3,000
2020.09.10~2020.10.14
USD 42,950
2020.09.03~2020.10.26
USD 14,109
2020.08.06~2021.01.28
EUR
5,000
2020.09.03~2020.10.14
$ 5,011
2020.09.30~2020.10.21
December 31, 2019

Contract period

Contract amount
(notional principal)
(Note)
USD 9,823
RMB
30,000
EUR
1,000
USD 19,500
USD 21,640
$ 4,819
Contract period

2019.09.20~2020.04.29
2019.10.29~2020.02.03
2019.10.18~2020.02.26
2019.11.22~2020.02.04
2019.08.08~2020.04.15
2019.12.30~2020.01.15
Derivative instruments
Current items:
Forward foreign exchange contracts
- Sell
- Sell-SWAP
- Buy
Futures
September 30, 2019
September 30, 2019

Contract amount
(notional principal)
(Note)
USD
10,654
RMB
10,000
USD 6,000
USD 17,860
EUR
500
$ 6,174
Contract period

2018.12.14~2020.02.27
2019.09.09~2019.11.08
2019.09.26~2019.10.08
2019.05.14~2020.02.28
2019.09.23~2019.10.07
2019.09.26~2019.10.16		 
~28~

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 September 30, 2020, December 31, 2019 and September 30, 2019, the balance of margin in the account were $2,655, $12,970 and $13,026, and the amount of excess margin were $2,359, $2,075 and $1,682, respectively.

  • C. Details of th as collateral are provided in Note 8.

    • ets at fair value through profit or loss pledged to others

  • 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
Listed stocks

Unlisted stocks


Valuation adjustment

 September 30, 2020
$ 445,451
40,956

486,407
42,971
(
$ 529,378
 December 31, 2019

$ -
38,035

38,035
6,000)
(
$ 32,035
 September 30, 2019
$ -
38,035
38,035
6,000)
$ 32,035

  • A. The Group has elected to classify equity investments that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $529,378, $32,035 and $32,035 as at September 30, 2020, December 31, 2019 and September 30, 2019, respectively.

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


Financial assets at fair value through other
comprehensive income
Fair value change recognized in other
comprehensive income
 Three months ended September 30,
2020
2019
$ 41,427
$ -

2020

$ 41,427
 
~29~

Financial assets at fair value through other
comprehensive income
Fair value change recognized in other
comprehensive income
 Nine months ended September 30,
2020
2019
$ 48,971
$ -

2020

$ 48,971

  • C. As at September 30, 2020, December 31, 2019 and September 30, 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 $486,407, $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
September 30, 2020
September 30, 2020		 December 31, 2019 September 30, 2019
Current items:
Time deposits $ 169,284
 $ 84,055
$ 200,244
Non-current items:
Earmarked repatriated funds $ 329,420
 $ -
$ -
A. Amounts recognized in profit or loss in relation to financial assets at amortized cost are
listed below:
Three months ended September 30,
2020
 2019
Interest income $ 1,947
 $ 1,259
Nine months ended September 30,
2020
 2019
Interest income $ 2,440
 $ 4,187
B. funds in the amount of $329,420 are restricted under the
Management, Utilization, and Taxation of Repatriated Offshore Funds Act, and were
reclassified as financial assets at amortized cost-non-current.

  • C. Details financial assets at amortized cost pledged to others as collateral are provided in Note 8.

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

~30~

(5) Notes and accounts receivable

September 30, 2020 December 31, 2019
September 30, 2019		 December 31, 2019
September 30, 2019		 December 31, 2019
September 30, 2019		 December 31, 2019
September 30, 2019
Notes receivable $ 2,432,617 $ 1,977,099 $ 1,763,371
Less: Allowance for
uncollectible accounts - ( 2)
(		 5)
$ 2,432,617 $ 1,977,097
$		 1,763,366
Accounts receivable $ 112,013,942 $ 111,578,591 $ 106,797,784
Less: Allowance for
uncollectible accounts ( 1,061,941) ( 922,509)
(		 1,144,803)
$ 110,952,001 $ 110,656,082
$		 105,652,981
A. The ageing analysis of accounts receivable and notes receivable is as follows:
September 30, 2020 December 31, 2019
Accounts Notes Accounts Notes
receivable receivable receivable receivable
Not past due $104,812,706 $ 2,432,617 $105,293,370 $ 1,954,402
One month 5,571,291 - 4,822,076 22,629
Two months 284,760 - 472,117 68
Three months 250,799 - 193,956 -
Four months 143,977 - 68,853 -
Over four months 950,409
-
728,219		 -
$112,013,942
$ 2,432,617
$111,578,591		 $ 1,977,099
September 30, 2019
Accounts Notes
receivable receivable
Not past due $101,569,470 $ 1,761,931
One month 3,520,001 1,440
Two months 432,970 -
Three months 259,031 -
Four months 81,698 -
Over four months 934,614 -
$106,797,784 $ 1,763,371

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

  • B. As of September 30, 2020, December 31, 2019, September 30, 2019 and January 1, 2019, the Group ding notes receivable) arising from contracts with customers amounted to $114,446,559, $113,555,690, $108,561,155 and $99,334,976, respectively.

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

  • D. As at September 30, 2020, December 31, 2019 and September 30, 2019, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in re eceivable was $2,432,617, $1,977,097 and $1,763,366, and accounts receivable was $110,952,001, 

~31~

$110,656,082 and $105,652,981, 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 September 30, 2020, December 31, 2019 and September 30, 2019, outstanding accounts receivable were as follows:

September 30, 2020

September 30, 2020
Purchaser of
accounts receivable		 Accounts
receivable
transferred
Amount
derecognized
Facilities
(In thousands)
Amount
advanced
Interest rate
of amount
advanced
$ 643,055 $ 643,055 USD
50,000 $ 643,055
0.75%~2.25%
2,950,359 2,950,359 USD
$ 137,000
540,000
2,849,109
0.96%~3.01%
5,223,758 5,223,758 USD
37,578 2,957,910
0.70%~3.00%
$ 5,267,250
2,785,235 2,785,235 USD
$ 177,000
20,000
1,619,348
1.01%~2.91%
773,717 773,717 USD
$ 23,000
1,474,300
661,287
0.79%~3.12%
544,419 544,419 USD
36,700 94,749
1.03%~1.15%
6,499,668 6,499,668 USD
341,000 5,254,358
0.94%~2.05%
31,188 31,188 USD
3,000 -
-
4,369,350 4,369,350 $ 9,800,000 1,568,375
0.76%~1.43%
1,495,415 1,495,415 USD
68,400 265,851
0.82%~0.86%
208,510 208,510 USD
$ 19,000
400,000
82,634
1.07%~1.55%
47,140 47,140 USD
18,600 35,125
0.84%~0.88%
3,477,396 3,477,396 USD
249,000 2,117,784
0.75%~2.54%
71,695 71,695 USD
3,000 61,393
1.04%~1.29%
5,693,357 5,693,357 USD
130,000 5,316,254
1.10%~2.59%		 Pledged
assets
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		 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
None		 
~32~

September 30, 2020

September 30, 2020
Purchaser of
accounts receivable		 Accounts
receivable
transferred
Amount
derecognized
Facilities
(In thousands)
Amount
advanced
Interest rate
of amount
advanced
$ 679,966 $ 679,966 $ 1,350,000 -
-
1,296 1,296 USD
14,000 1,296
0.74%~1.85%
309,005 309,005 USD
20,000 309,005
0.98%		 Pledged
assets
KGI Bank
Bank of Taiwan
Mizuho Bank		 Note 14
Note 15
Note 16

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

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

  • Note 3: The Group has signed commercial papers amounting to USD 3,598 thousand and $519,450 that were pledged to others as collateral.

  • Note 4: The Group has signed commercial papers amounting to USD 177,000 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 323,074 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 68,400 thousand that were pledged to others as collateral.

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

  • Note 11: The Group has signed commercial papers amounting to USD 18,600 thousand that were pledged to others as collateral.

  • Note 12: The Group has signed commercial papers amounting to USD 185,000 thousand that were pledged to others as collateral.

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

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

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

  • Note 16: The Group has signed commercial papers amounting to USD 20,000 thousand that were pledged to others as collateral. 

~33~

December 31, 2019

December 31, 2019
Purchaser of
accounts receivable		 Accounts
receivable
transferred
Amount
derecognized
Facilities
(In thousands)
Amount
advanced
Interest rate
of amount
advanced
$ 1,060,966 $ 1,060,966 USD
50,000 $ 1,060,966
2.72%~3.45%
3,885,859 3,885,859 USD
$ 133,000
540,000
3,583,671
2.60%~3.70%
1,944,442 1,944,442 USD
43,300 1,166,525
2.05%~3.49%
$ 3,202,000
2,943,332 2,943,332 USD
$ 173,000
20,000
1,683,767
2.54%~3.39%
782,948 782,948 USD
$ 21,000
1,474,300
500,377
1.11%~3.35%
478,727 478,727 USD
39,000 374
2.95%
2,830,538 2,830,538 USD
140,500 1,625,824
2.10%~3.71%
35,042 35,042 USD
4,520 28,749
2.59%~2.80%
3,763,294 3,763,294 $ 9,800,000 204,760
3.02%
302,078 302,078 USD
44,900 -
-
100,811 100,811 USD
$ 19,000
400,000
15,615
2.92%
264,749 264,749 USD
25,600 205,263
2.57%~3.03%
4,958,326 4,958,326 USD
294,000 2,965,357
2.45%~3.67%
27,094 27,094 USD
3,000 20,100
2.75%~2.77%
96,565 96,565 USD
130,000 -
-
434,446 434,446 $ 1,350,000 -
-
23,408 23,408 USD
14,000 23,408
2.78%~2.86%		 Pledged
assets
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		 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 

~34~

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.

September 30, 2019

September 30, 2019
Purchaser of
accounts receivable		 Accounts
receivable
transferred
Amount
derecognized
Facilities
(In thousands)
Amount
advanced
Interest rate
of amount
advanced
$ 566,281 $ 566,281 USD
50,000 $ 566,281
3.05%~3.45%
4,215,687 4,215,687 USD
$ 159,000
540,000
3,533,629
2.88%~3.70%
1,801,807 1,801,807 USD
57,300 61,880
2.85%~3.49%
$ 2,527,000
2,870,859 2,870,859 USD
$ 173,000
20,000
1,852,704
2.86%~3.39%
973,636 973,636 USD
$ 18,500
1,474,300
738,492
3.06%~3.35%
603,094 603,094 USD
39,000 237,437
3.05%~3.18%
3,028,508 3,028,508 USD
140,500 1,400,685
2.42%~4.01%
38,609 38,609 USD
4,520 -
-
3,889,395 3,889,395 $ 9,800,000 367,928
2.28%~3.4%
494,119 494,119 USD
95,900 187,463
2.80%~3.00%		 Pledged
assets
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		 Note 1
Note 2
Note 3
Note 4
Note 5
Note 6
Note 7
None
Note 8
Note 9		 
~35~

September 30, 2019

September 30, 2019
Purchaser of
accounts receivable		 Accounts
receivable
transferred
Amount
derecognized
Facilities
(In thousands)
Amount
advanced
Interest rate
of amount
advanced
$ 128,094 $ 128,094 USD
$ 19,000
400,000
$ 24,313
2.96%
374,277 374,277 USD
51,600 318,329
2.92%~3.20%
5,261,225 5,261,225 USD
294,000 3,255,921
2.74%~3.67%
33,608 33,608 USD
3,000 -
-
668,070 668,070 USD
130,000 269,710
3.35%~3.45%
515,542 515,542 $ 1,550,000 -
-
221,955 221,955 USD
14,000 221,955
3.06%~3.31%		 Pledged
assets
Far Eastern
International Bank
Chang Hwa Bank
DBS Bank
Taiwan Cooperative
Bank
Hang Seng Bank
KGI Bank
Bank of Taiwan		 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 159,900 thousand and $640,000 that were pledged to others as collateral.

  • Note 3: The Group has signed commercial papers amounting to USD 71,572 thousand and $252,700 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 48,000 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 43,600 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. 

~36~

  • Note 15: The Group has signed commercial papers amounting to $830,000 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
September 30, 2020 December 31, 2019 September 30, 2019
Retention amount of factoring
accounts receivable $ 11,919,335 $ 10,938,791 $ 12,648,035
VAT refund 379,828 251,634 305,816
Others 611,782 238,550 158,748
$ 12,910,945
$ 11,428,975		 $ 13,112,599
Inventories
September 30, 2020
Allowance
Cost for valuation Book value
Inventories $ 54,103,964 ($ 1,425,999) $ 52,677,965
Inventories in transit 4,043,041 - 4,043,041
$ 58,147,005 ($ 1,425,999)
$ 56,721,006
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
September 30, 2019
Allowance
Cost for valuation Book value
Inventories $ 67,070,841 ($ 1,081,664) $ 65,989,177
Inventories in transit 3,869,764 - 3,869,764
$ 70,940,605 ($ 1,081,664)
$ 69,858,941
The cost of inventories recognized as expense for the period:
Three months ended September 30,
2020
 2019
Cost of goods sold $ 163,669,785 $ 134,750,755
Loss on price decline in inventory 159,949 90,672
Loss on physical inventory 94
 206
Cost of goods sold $ 163,829,828
 $ 134,841,633

(8) Inventories

~37~
(9) Nine months ended September 30,
2020
2019
Cost of goods sold
$ 432,941,199 $ 364,903,257
Loss on price decline in inventory
583,484 284,129
Loss on physical inventory
215
1,094
Cost of goods sold
$ 433,524,898
$ 365,188,480
Investments accounted for using the equity method
A. Details of investments accounted for using the equity method:
Investee company
September 30, 2020
December 31, 2019
September 30, 2019
WT Microelectronics Co.,
Ltd. (WT)
$ 9,732,313 $ - $ -
ChainPower Technology
Corp. (ChainPower)
157,157 161,169 158,297
Sunrise Technology Co.,
Ltd.
48,855 57,680 57,197
Eesource Corp. (Eesource)66,529 65,785 69,527
Suzhou Xinning Bonded
Warehouse Co., Ltd.
65,624 77,270 81,499
Adivic Technology Co.,
Ltd.
29,281 31,975 34,147
Suzhou Xinning Logistics
Co., Ltd.
42,312 40,299 39,503
Gain Tune Logistics
(Shanghai) Co., Ltd.
24,394 26,370 27,657
VITEC WPG Limtied
36,544 42,104 43,520
AutoSys Co., Ltd.
74,268 71,090 71,475
Beauteek Global Wellness
Corporation Limited
11,604
12,400
11,921
$ 10,288,881
$ 586,142
$ 594,743

A.

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

Company
name
WT		 Principal
place
of business
Taiwan		 Shareholding ratio
September 30,
2020
September 30,
2019
22.47%
-		 Nature of
relationship		 Method of
measurement

September 30,
2020
22.47%

Holding at least
20% of the voting
rights		 Equity method 
~38~

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

Balance sheet

follows:
Balance sheet
WT
September 30, 2020
Current assets $ 98,783,645
Non-current assets 18,579,858
Current liabilities ( 76,474,243)
Non-current liabilities ( 2,245,175)
Total net assets $ 38,644,085
Share in associate
s net assets		 $ 8,315,422
Goodwill (Note) 1,416,891
Carrying amount of the associate $ 9,732,313
  • Note: In February 2020, the Group held 29.9% equity interest in WT. However, WT increased its capital by issuing new shares in order to exchange shares with ASMedia Technology Inc., and the effective date for this share exchange was set on April 21, 2020, and the convertible bonds WT issued were converted to common stock. As the Group did not subscribe to the capital increase proportionately to its equity interest, the G s shareholding ratio of WT decreased to 22.47%, and its capital reserve increased by $221,270. As of September 30, 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 recognized under goodwill.

For September 30, 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) income, net of
tax
(
Total comprehensive income for the period
Dividends received from associates
 WT
Three months ended
September 30, 2020
Nine months ended
September 30, 2019
$ 91,862,039
$ 244,061,884
1,151,655 2,557,056
164,190)
5,570,130
$ 987,465
$ 8,127,186
$ 369,904
$ 369,904
Three months ended
September 30, 2020


$ 91,862,039

1,151,655
164,190)

$ 987,465

$ 369,904

For the three months ended September 30, 2019 and nine months ended September 30, 2019: None. 

~39~

  • C. The carrying amount of the Grou nterests in all individually immaterial associates and the of the operating results are summarized below:

  • As of September 30, 2020, December 31, 2019 and September 30, 2019, the carrying amount of the Group ally immaterial associates amounted to $556,568, $586,142 and $594,743, respectively.

and $594,743, respectively.


Profit for the period from continuing
operations

Other comprehensive loss - net of tax
(
Total comprehensive income



Profit for the period from continuing
operations

Other comprehensive (loss) income - net of
tax
(
Total comprehensive (loss) income
(		 Three months ended September 30,
2020
2019
$ 8,745 $ 5,370
2,343)
( 5,243)
$ 6,402
$ 127
Nine months ended September 30,
2020
2019
$ 25,254 $ 16,419
28,759)
5,717
$ 3,505)
$ 22,136

2020

$ 25,254
28,759)

$ 3,505)

  • D. There was no impairment on investments accounted for using the equity method for the nine months ended September 30, 2020 and 2019.

  • E. Except for WT which was accounted for based on its finanical statements which were reviewed by independent auditors, the other investments accounted for using the equity method as of September 30, 2020 and 2019 and investment income (loss) for the nine months ended September 30, 2020 and 2019 were recognized based on their financial statements which were not reviewed by independent auditors.

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

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

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

~40~
Construction in Buildings
progress and		 and
Transportation
Office
Leasehold
equipment to		 Land
structures
equipment
equipment
improvements
Others
be tested
Total		 At January 1, 2020 Cost
$ 2,294,712 $2,080,861 $ 12,499 $ 433,590 $ 640,775 $ 443,395 $ 1,410,680 $ 7,316,512		 Accumulated depreciation
- ( 629,659) ( 10,935) ( 354,723) ( 385,116) ( 188,315) - ( 1,568,748)		 Accumulated impairment
( 1,582)
( 10,765)
-
-
-
-
-
( 12,347)		 $ 2,293,130
$1,440,437
$ 1,564
$ 78,867
$ 255,659
$ 255,080
$ 1,410,680
$ 5,735,417		 Nine months ended September 30, 2020 Opening net book amount
$ 2,293,130 $1,440,437 $ 1,564 $ 78,867 $ 255,659 $ 255,080 $ 1,410,680 $ 5,735,417		 Additions
- 1,598 3,074 14,764 12,795 45,886 5,334,305 5,412,422		 Disposals
- ( 573) - ( 1,443) ( 341) ( 22) - ( 2,379)		 Transfer (Note)
- - - 812 - - - 812		 Depreciation charge
- ( 38,844) ( 1,032) ( 28,861) ( 86,926) ( 32,245) - ( 187,908)		 Effect due to changes in exchange rates
( 1,811)
18,063
( 12)
3,139
( 31,421)
( 9,449)
-
( 21,491)		 Closing net book amount
$ 2,291,319
$1,420,681
$ 3,594
$ 67,278
$ 149,766
$ 259,250
$ 6,744,985
$10,936,873		 At September 30, 2020 Cost
$ 2,292,901 $2,095,655 $ 15,372 $ 435,953 $ 613,546 $ 476,662 $ 6,744,985 $12,675,074		 Accumulated depreciation
- ( 664,209) ( 11,778) ( 368,675) ( 463,780) ( 217,412) - ( 1,725,854)		 Accumulated impairment
( 1,582)
( 10,765)
-
-
-
-
-
( 12,347)		 $ 2,291,319
$1,420,681
$ 3,594
$ 67,278
$ 149,766
$ 259,250
$ 6,744,985
$10,936,873		 Note: Inventories amounting to $812 were transferred to property, plant and equipment.
Construction in Buildings
progress and		 and
Transportation
Office
Leasehold
equipment to		 Land
structures
equipment
equipment
improvements
Others
be tested
Total		 At January 1, 2019 Cost
$ 2,296,752 $2,122,448 $ 19,043 $ 449,661 $ 633,249 $ 438,681 $ 1,152,522 $7,112,356		 Accumulated depreciation
- ( 590,873) ( 15,215) ( 348,475) ( 274,296) ( 169,714) - ( 1,398,573)		 Accumulated impairment
( 1,582)
( 10,765)
-
-
-
-
-
( 12,347)		 $ 2,295,170
$1,520,810
$ 3,828
$ 101,186
$ 358,953
$ 268,967
$ 1,152,522
$5,701,436		 Nine months ended September 30, 2019 Opening net book amount
$ 2,295,170 $1,520,810 $ 3,828 $ 101,186 $ 358,953 $ 268,967 $ 1,152,522 $5,701,436		 Additions
- 392 642 14,411 20,697 22,717 172,262 231,121		 Disposals
- ( 177) ( 119) ( 2,283) ( 71) ( 658) - ( 3,308)		 Depreciation charge
- ( 39,910) ( 1,621) ( 30,048) ( 90,652) ( 28,758) - ( 190,989)		 Effect due to changes in exchange rates
1,431
( 18,836)
( 12)
107
1,698
2,329
-
( 13,283)		 Closing net book amount
$ 2,296,601
$1,462,279
$ 2,718
$ 83,373
$ 290,625
$ 264,597
$ 1,324,784
$5,724,977		 At September 30, 2019 Cost
$ 2,298,183 $2,094,097 $ 15,400 $ 434,718 $ 651,802 $ 448,271 $ 1,324,784 $7,267,255		 Accumulated depreciation
- ( 621,053) ( 12,682) ( 351,345) ( 361,177) ( 183,674) - ( 1,529,931)		 Accumulated impairment
( 1,582)
( 10,765)
-
-
-
-
-
( 12,347)		 $ 2,296,601
$1,462,279
$ 2,718
$ 83,373
$ 290,625
$ 264,597
$ 1,324,784
$5,724,977
  • 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


Amount capitalized

Range of the interest rates for
capitalization
 Three months ended September 30,
2020
2019
$ 12,807 $ 3,207
0.96%~0.99% 0.99%~1.00%
Nine months ended September 30,
2020
2019
$ 26,434 $ 9,401
0.96%~1.09% 0.99%~1.03%

2020

$ 26,434
0.96%~1.09%
  • B. Information on property, plant and equipment that were pledged to others as collateral is provided in Note 8.

(11) Leasing arrangements-lessee

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

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

Transportation Office
Buildings and equipment equipment Other
structures (Business vehicles) (Photocopiers) equipment Total
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
Nine months ended September 30, 2020
Opening net book
amount $ 1,040,238 $ 58,499 $ 19,170 $ 11,172 $1,129,079
Additions 831,919 10,913 - 1,736 844,568
Disposals ( 710) ( 5,763) - ( 213) ( 6,686)
Depreciation charge ( 309,481) ( 24,661) ( 6,305) ( 8,548) ( 348,995)
Effect due to changes in
exchange rates ( 15,401) ( 71) ( 153) ( 70) ( 15,695)
Closing net book amount $ 1,546,565 $ 38,917 $ 12,712 $ 4,077 $1,602,271
At September 30, 2020
Cost $ 2,201,850 $ 84,519 $ 27,304 $ 22,244 $2,335,917
Accumulated
depreciation ( 655,285) ( 45,602) ( 14,592) ( 18,167) ( 733,646)
Accumulated impairment - - - - -
$ 1,546,565 $ 38,917 $ 12,712 $ 4,077 $1,602,271 
~43~
Transportation Transportation Office
Buildings and equipment equipment
Other
structures (Business vehicles) (Photocopiers)
 equipment Total
At January 1, 2019
Cost $ - $ - $ - $ - $ -
Accumulated
depreciation - - - - -
Accumulated impairment - - -
 - -
$ - $ - $ -
 $ - $ -
Nine months ended September 30, 2019
Opening net book
amount $ - $ - $ - $ - $ -
Modified retrospective
adjustments under
IFRS 16 1,325,773 62,751 26,570 20,708 1,435,802
Additions 145,054 25,819 907 472 172,252
Disposals - - - ( 141) ( 141)
Depreciation charge ( 298,955) ( 21,101) ( 6,397) ( 8,636) ( 335,089)
Effect due to changes in
exchange rates ( 51,058) ( 293) 467
 1,421 ( 49,463)
Closing net book amount $ 1,120,814 $ 67,176 $ 21,547
 $ 13,824 $1,223,361
At September 30, 2019
Cost $ 1,414,266 $ 88,173 $ 27,942 $ 22,338 $1,552,719
Accumulated
depreciation ( 293,452) ( 20,997) ( 6,395) ( 8,514) ( 329,358)
Accumulated impairment - - -
 - -
$ 1,120,814 $ 67,176 $ 21,547
 $ 13,824 $1,223,361

  • C. For the nine months ended September 30, 2020 and 2019, the additions to right-of-use assets were $844,568 and $172,252, 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



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 September 30,
2020
2019
$ 17,623 $ 12,821
6,034 7,160
465 594
Nine months ended September 30,
2020
2019
$ 37,225 $ 37,145
26,746 23,645
1,368 1,825

2020

$ 37,225
26,746
1,368
  • E. For the nine months ended September 30, 2020 and 2019, the Gr s total cash outflow 
~44~

for leases were $381,670 and $395,830, respectively.

(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
Nine months ended September 30, 2020
Opening net book amount $ 338,690 $ 721,425 $ 1,060,115
Depreciation charge - ( 16,372) ( 16,372)
Effect due to changes in
exchange rates - ( 5,497)
( 5,497)
Closing net book amount $ 338,690 $ 699,556 $ 1,038,246
At September 30, 2020
Cost $ 338,690 $ 922,433 $ 1,261,123
Accumulated depreciation - ( 222,877)
( 222,877)
$ 338,690 $ 699,556 $ 1,038,246
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
Nine months ended September 30, 2019
Opening net book amount $ 338,690 $ 768,556 $ 1,107,246
Additions - 126 126
Depreciation charge - ( 17,270) ( 17,270)
Effect due to changes in
exchange rates -
( 17,586)
( 17,586)
Closing net book amount $ 338,690
$ 733,826		 $ 1,072,516
At September 30, 2019
Cost $ 338,690 $ 937,730 $ 1,276,420
Accumulated depreciation -
( 203,904)
( 203,904)
$ 338,690
$ 733,826		 $ 1,072,516 
~45~
A. Rental income from investment property and direct operating expenses Rental income from investment property and direct operating expenses Rental income from investment property and direct operating expenses Rental income from investment property and direct operating expenses arising from the
investment property are shown below:
Three months ended September 30,
2020
 2019
Rental revenue from investment property$ 10,084
 $ 12,498
Direct operating expenses arising from the
investment property that generated rental
income during the period
$		 3,562
 $ 6,387
Direct operating expenses arising from the
investment property that did not generate
rental income during the period
$		 1,894
 $ 1,552
Nine months ended September 30,
2020
 2019
Rental revenue from investment property$ 31,277
 $ 43,743
Direct operating expenses arising from the
investment property that generated rental
income during the period
$		 11,377
 $ 16,138
Direct operating expenses arising from the
investment property that did not generate
rental income during the period
$		 4,995
 $ 3,407
B. The fair value of the investment property held by the Group as of September 30, 2020,
December 31, 2019 and September 30, 2019 was $1,874,475, $1,532,640 and $1,897,310,
respectively. The fair value as of September 30, 2020, December 31, 2019 and September
30, 2019 was based on independent appraisers ion, which was made using
comparative method and income approach. Comparison method is to compare the
valuation target with similar property which is traded around the valuation period.
Comparison method is categorized within Level 3 in the fair value hierarchy. Valuations
were made using the income approach with key assumptions as follows:
September 30, 2020 December 31, 2019 September 30, 2019
Discount rate
2.35%~2.75%		 2.35%~2.75% 2.35%~2.75%
Growth rate
0%~1%		 0%~1% 0%~1%
Gross margin
1.2%~3.2%		 1.2%~3.2% 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. 

~46~
(13) Intangible assets
Operating right
Software

At January 1, 2020
Cost
$ 287,532 $ 250,053
Accumulated amortization and
impairment
( 287,532)
( 217,795)
(
$ -
$ 32,258

Nine months ended September 30, 2020
Opening net book amount
$ - $ 32,258
Additions - acquired
separately
- 154,955
Disposals
- ( 63)
Amortization charge
- ( 47,770)
Effect due to changes in
exchange rates
-
( 234)
(
Closing net book amount
$ -
$ 139,146

At September 30, 2020
Cost
$ 279,508 $ 403,637
Accumulated amortization and
impairment
( 279,508)
( 264,491)
(
$ -
$ 139,146

Operating right
Software

At January 1, 2019
Cost
$ 294,234 $ 235,175
Accumulated amortization and
impairment
( 294,234)
( 208,732)
(
$ -
$ 26,443

Nine months ended September 30, 2019
Opening net book amount
$ - $ 26,443
Additions - acquired
separately
- 13,150
Disposals
- ( 1,262)
Amortization charge
- ( 12,670)
Effect due to changes in
exchange rates
-
( 234)

Closing net book amount
$ -
$ 25,427

At September 30, 2019
Cost
$ 297,197 $ 240,426
Accumulated amortization and
impairment
( 297,197)
( 214,999)
(
$ -
$ 25,427
 Goodwill

$ 5,658,880
122,345)
(
$ 5,536,535

$ 5,536,535
-
-
-
5,863)
(
$ 5,530,672

$ 5,595,960
65,288)
(
$ 5,530,672

Goodwill

$ 5,666,777
125,345)
(
$ 5,541,432

$ 5,541,432
-
-
-
2,165

$ 5,543,597

$ 5,670,269
126,672)
(
$ 5,543,597
 Others
Total
$ 64,820 $6,261,285
64,762)
( 692,434)
$ 58
$5,568,851
$ 58 $5,568,851
- 154,955
- ( 63)
- ( 47,770)
1)
( 6,098)
$ 57
$5,669,875
$ 39,770 $6,318,875
39,713)
( 649,000)
$ 57
$5,669,875
Others
Total
$ 66,299 $6,262,485
66,240)
( 694,551)
$ 59
$5,567,934
$ 59 $5,567,934
- 13,150
- ( 1,262)
- ( 12,670)
2
1,933
$ 61
$5,569,085
$ 66,952 $6,274,844
66,891)
( 705,759)
$ 61
$5,569,085

Opening net book amount

Additions - acquired
separately

Disposals

Amortization charge

Effect due to changes in
exchange rates

Closing net book amount

At September 30, 2019
Cost

Accumulated amortization and
impairment
(
The details of amortization charge are as follows:


Selling and marketing expenses

General and administrative expenses

 Three months ended September 30,
2020
2019
$ 2,345 $ 917
13,945
2,671
$ 16,290
$ 3,588

2020

$ 2,345
13,945

$ 16,290
 
~47~
Nine months ended September 30, Nine months ended September 30,
2020
 2019
Selling and marketing expenses $ 4,646 $ 2,987
General and administrative expenses 43,124
 9,683
$ 47,770
 $ 12,670
A. Goodwill is allocated as follows to s cash-generating units identified according
to operating segment:
September 30, 2020 December 31, 2019 September 30, 2019
Yosun subgroup
 $ 3,639,971 $ 3,644,792 $ 3,650,599
World Peace Industrial
subgroup 1,646,418 1,647,459 1,648,716
Others
 244,283 244,284 244,282
$ 5,530,672
$ 5,536,535
$ 5,543,597

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

  • Management determined budgeted gross margin based on past performance and its expectations of market development. The assumptions used for weighted average growth rates are based on past historical experience and expectations of the industry; the assumption used for discount rate is the weighted average capital cost of the Group. As of September 30, 2020, December 31, 2019 and September 30, 2019, the key valuations used for pre-tax discount rate were $5.46%~6.12%, 6.06%~7.13% and 6.87%, respectively.

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

(14) Prepayments for investments

September 30, 2020 December 31, 2019 September 30, 2019 Prepayments for investments (Note 1) (Note 2) $ 1,245,243 $ 8,142,688 $ -

  • Note 1: 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 ents accounted for using the equity metho

  • Note 2: On September 18, 2020, the Board of Directors of the Group resolved to subscribe es A preference shares in the amount of 24,283,867 shares with a par value 

~48~

of NT$50 per share, with total consideration of $1,214,193, based on the shareholding ratio at the effective date of the capital increase in accordance with the application for shares. As of October 15, 2020 (effective date of the capital increase), ratio in WT is 17.99% of total outstanding preference shares after subscribi

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


Overdue receivables

Less: Allowance for doubtful
accounts
(
 September 30, 2020
$ 918,256
910,919)
(
$ 7,337
 December 31, 2019

$ 1,026,348
946,395)
(
$ 79,953
 September 30, 2019
$ 988,669
911,994)
$ 76,675

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 ( 22,050) ( 7,209)
Write-off of bad debts ( 8,955) ( 22,161)
Transferred from accounts receivable 20,193 4,246
Other (Note) - 1,339
Effect due to changes in exchange rates ( 24,664) 7,987
At September 30 $ 910,919 $ 911,994

Note: It pertains to adjustments relative to overdue receivables due to bad debts recovery.

(16) Short-term borrowings

Type of borrowings

Loans for overseas purchases

Short-term loans


Annual interest rates
 September 30, 2020
$ 10,947,377
45,217,396

$ 56,164,773

0.65%~8.5%
 December 31, 2019

$ 20,737,137
48,154,477

$ 68,891,614

0.96%~9.75%
 September 30, 2019
$ 21,215,369
36,461,334
$ 57,676,703
0.97%~9.75%

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

(17) Short-term notes and bills payable


Commercial papers payable

Less: Unamortized discount
(

Annual interest rates
 September 30, 2020
$ 4,900,000
3,923)
(
$ 4,896,077

0.35%~1.12%
 December 31, 2019

$ 5,560,000
4,576)
(
$ 5,555,424

0.50%~1.16%
 September 30, 2019
$ 4,700,000
3,498)
$ 4,696,502
0.50%~1.17%

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

~49~

- (18) Long term borrowings

Long-term borrowings
Borrowing
period /
Type of borrowings repayment term September 30, 2020 December 31, 2019 September 30, 2019
Secured bank borrowings 2012.03.30~
(Note 1~Note 3) 2040.04.30 $ 5,570,878 $ 16,341 $ 18,934
Unsecured bank 2019.07.10~
borrowings (Note 4~ 2025.09.30
Note 7, Note 9 and Note
11~Note 16) 7,686,095 5,542,428 6,065,231
Commercial paper payable 2018.11.09~
(Notes 8, 10 and 13) 2023.09.04 11,700,000 7,300,000 7,300,000
24,956,973 12,858,769 13,384,165
Less: Discount on long-term borrowings ( 37,882)( 25,396) ( 21,191)
Less: Current portion of long-term
borrowings (shown as
other current
liabilities
)		 ( 272,591)
( 5,502,585)		 ( 5,717,932)
$ 24,646,500 $ 7,330,788 $ 7,645,042
Interest rate range 0.57%~3.49% 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 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 Compan 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, 

~50~

and the facility is JPY 250,000,000. The pledged assets are land and office in Tokyo, which amount to $69,494 and $68,447, 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: The Company had entered into a mid-term agreement for five years with a financial institution. The interest rate shall be the index interest rate plus 0.45% from September 30, 2025. The principal should be repaid in equal monthly installments starting from October 2020.

  • Note 6: Asian Information Technology Inc., 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 September 24, 2020.

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

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

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

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

  • (d) Loan covenant: During the contract term, Silicon Application Corporation is required to maintain financial ratios as follows: the liquidity ratio should not be less than 100%, debt ratio should not be higher than 220%, time interest earned ratio should not be less than 3 and net value (net assets less intangible assets) should be maintained at or above $3,000,000.

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

  • Note 8: Silicon Application Corporation had entered into a syndicated borrowing agreement with Chang Hwa Commercial Bank and other financial institutions in June 2020. The 
~51~

terms and conditions of the contract were as follows:

  • (a) Contract term: Within three year 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 term. At the end of the contract term, the principal, interest payable and any related expense of each drawdown must be repaid in full.

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

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

  • Note 9: World Peace Industrial Co., Ltd. (WPI), t ubsidiary, 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 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 

~52~

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

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

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

    • i. Each drawdown amount must be no less than $100,000 or USD 3 million. Based on the credit term in the contract, the loan can be re-utilized. The repayment period could be one or six months: One month at the least and six months at the most. Each maturity date shall be within the contract term.

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

  • (c) Repayment:

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

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

  • (d) Loan covenant: WPI is required to maintain certain financial ratios based on annual consolidated financial statements during the contract period as follows: liquidity ratio should not be less than 100%, debt ratio should not be higher than 

~53~

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 11: 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 erm. Interests shall be paid quarterly.

  • (d) Loan covenant: The subsidiary - WPI 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 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 

~54~

contract.

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

  • Note 12: World Peace Industrial Co., Ltd. (WPI

  • financing agreement with DBS Bank on July 24, 2020. The terms and conditions of the contract were as follows:

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

  • (b) Facility and drawdown: The facility must be less than USD 100 million. Based on the credit term in the contract, the loan can be re-utilized.

  • (c) Repayment: For each drawdown, the principal and interest must be repaid in full

  • Note 13: World Peace Ind ed into a long-term loan agreement with Taiwan Cooperative Bank on August 18, 2020. The terms and conditions of the contract were as follows:

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

  • (b) Facility and drawdown: The facility is $10,000,000. Based on the credit term in the contract, the loan can be re-utilized.

    • i. Each drawdown amount must be no less than $50,000, and the amount more than $50,000 shall be an integral multiple of $10,000 or shall be the available facility during the credit period, but not available for the amount approved by the lead bank. The repayment period can be one, two, three, four, five or six month(s). However, each maturity date shall be within the contract term.

    • ii. The facility of commercial papers is $7,500,000. Each drawdown amount must be no less than $50,000, and the amount more than $50,000 shall be an integral multiple of $10,000 or shall be the available facility during the credit period, but not available for the amount approved by the lead bank. The issuance period for each drawdown can be 60 and 90 days maturity or the days agreed by the lead bank and WPI with a limit of 180 days. However, each maturity date shall be within the contract term.

  • (c) Repayment:

    • i. For each drawdown, the principal and interest must be repaid in full at the end of each drawdown -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. 
~55~

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

  • (d) Loan covenant: WPI is required to maintain certain financial ratios based on annual consolidated financial statements during the contract period as follows: liquidity ratio should not be less than 100%, debt ratio should not be higher than 250%, time interest earned ratio should not be less than 2.5 and net value (net assets less intangible assets) should not be less than $10,000,000. If the covenants are not met, right to drawdown is immediately terminated, and the 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 14: 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 15: 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 16: 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. 

~56~

(19) Other current liabilities


Long-term borrowings-current
portion

Refund liabilities

Contract liabilities

Others

 September 30, 2020
$ 272,591
3,859,866
157,948
436,285

$ 4,726,690
 December 31, 2019

$ 5,502,585
4,463,062
1,027,069
454,895

$ 11,447,611
 September 30, 2019
$ 5,717,932
4,581,608
104,168
663,032
$ 11,066,740

  • 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 urrent liabilitie .

(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 employe ervice 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 employee ly 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 t gulations on pensions of manage 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 recognized pension costs of $2,871, $5,823, $8,624 and $17,361 for the three months ended September 30, 2020 and 2019, 

~57~

and nine months ended September 30, 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 (th N under the Labor Pension Act (the 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 empl hly salaries and wages to th individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

    • (b) Other overseas companies have defined contribution plans. Contributions for pensions and retirement allowance to independent fund administered by the government in accordance with the local pension regulations are based on a certain percentage of 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 September 30, 2020 and 2019, and nine months ended September 30, 2020 and 2019 were $72,232, $89,260, $196,335 and $272,008, respectively.

  • (21) Share capital

  • A. T thorized 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 September 30, 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 Comp ordinary shares outstanding (in thousands of shares) for the nine months ended September 30, 2020 and 2019 are as follows:


At January 1 and September 30
 2020

1,679,057
 2019
1,679,057

  • C. On June 28, 2019, the Board of Directors resolved to increase its capital by issuing 200 million shares of Class A preferred stocks at the price of $50 (in dollars) per share with the effective date set on September 18, 2019 for repayment of borrowings to financial institutions and strengthening th 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 

~58~

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 OSMO 11:00 a.m. (Taipei time) on the relevant pricing effective date of rate reset. If such rate cannot be obtained, the Company will determine the rate based on the reasonable market price with good faith.

  • (c) Dividend distribution: Dividends are distributed once per year in the form of cash. The current year s earnings, if any, shall first be used to pay all taxes and offset pr 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 ye rnings 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 Co 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 sto or stockholders of Class A preferred stocks only and stockholder eting 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 

~59~

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. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

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




January 1

Changes in equity of
associates and joint
ventures accounted
for using the equity
method

September 30





January 1

Preferred stock share
premium

Changes in equity of
associates and joint
ventures accounted
for using the equity
method

September 30
 2020 2020
Total
$ 27,456,298
226,894
$ 27,683,192

Total
$ 19,454,882
7,994,638
6,778
$ 27,456,298
Common
stock share

premium

$19,387,285
-

$19,387,285

 Preferred
stock share

premium

$ 7,994,638
-

$ 7,994,638

 Recognized
Treasury
share
changes in
subsidiarie

transaction
equity

$ 45,177 $ 431
-
-

$ 45,177
$ 431

2019		 Changes in
assoc
net equity

$ 28,767
226,894

$ 255,661
Common
stock share


premium

$19,387,285
-
-

$19,387,285
 Preferred
stock share

premium

$ -
7,994,638
-

$ 7,994,638
Treasury
share


transaction

$ 45,177
-
-

$ 45,177
 Recognized
changes in
subsidiarie


equity

$ 431
-
-

$ 431
 Changes in
assoc
net equity

$ 21,989
-
6,778

$ 28,767

(23) Retained earnings

  • A. Under the Compa ticles of Incorporation, the current yea 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. 
~60~

Employees of the Compa 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 aid-in capital.

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

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




Legal reserve

Provision for
(reversal of)
special reverse

Cash dividends

Cash dividends of
preference stock
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 2019 and 2018 as resolved by the shareholders are the same with the amounts resolved by the Board of Directors.

(24) Other equity items

2020

Other equity items 2020
Investments at
fair value through
comprehensive Currency
income translation Total
At January 1 ($ 6,000) ($ 5,414,694) ($ 5,420,694)
Revaluation-gross 1,499,386 - 1,499,386
Revaluation transferred to
retained earnings-gross ( 31,355) - ( 31,355)
Cumulative translation
differences:
- Group - ( 3,170,327) ( 3,170,327)
- Tax on Group - 788 788
- Associates - ( 283,162) ( 283,162)
At September 30 $ 1,462,031 ($ 8,867,395) ($ 7,405,364) 
~61~

2019

2019
Investments at
fair value through
comprehensive Currency
income translation Total
At January 1 ($ 6,000) ($ 2,596,682) ($ 2,602,682)
Cumulative translation
differences:
- Group - 242,004 242,004
- Tax on Group - 3,608 3,608
- Associates - 5,717 5,717
At September 30 ($ 6,000) ($ 2,345,353) ($ 2,351,353)

(25) Operating revenue

Operating revenue
Three months ended September 30,
2020 2019
Revenue from contracts with customers $ 169,986,962 $ 140,820,895
Nine months ended September 30,
2020 2019
Revenue from contracts with customers $ 450,842,215 $ 381,828,772
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:

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


Core components

Analog IC and mixed signal components

Discrete IC, logic IC

Memory

Optical components

Passive connector and magnetic components

Others




Core components

Analog IC and mixed signal components

Discrete IC, logic IC

Memory

Optical components

Passive connector and magnetic components

Others

 Three months ended September 30,
2020
2019
$ 60,499,927 $ 40,593,131
23,498,259 30,880,016
21,589,030 19,620,799
32,160,968 27,005,409
18,304,751 10,925,791
10,267,783 6,893,068
3,666,244
4,902,681
$ 169,986,962
$ 140,820,895
Nine months ended September 30,
2020
2019
$ 147,964,784 $ 110,268,680
74,371,241 83,358,601
59,832,267 54,828,726
93,390,729 72,633,299
41,632,908 28,663,339
23,518,059 20,609,766
10,132,227
11,466,361
$ 450,842,215
$ 381,828,772

2020

$ 147,964,784
74,371,241
59,832,267
93,390,729
41,632,908
23,518,059
10,132,227

$ 450,842,215
 
~62~

(26) Interest income

Interest income
Three months ended September 30,
2020 2019
Interest income from bank deposits $ 5,068 $ 10,237
Interest income from financial assets measured
at amortized cost 1,947 1,259
Total interest income $ 7,015 $ 11,496
Nine months ended September 30,
2020 2019
Interest income from bank deposits $ 28,214 $ 38,489
Interest income from financial assets measured
at amortized cost 2,440 4,187
Total interest income $ 30,654 $ 42,676
Other income
Three months ended September 30,
2020 2019
Rental revenue $ 12,565 $ 14,246
Dividend income 23,761 3,910
Other income 14,862 59,612
$ 51,188 $ 77,768
Nine months ended September 30,
2020 2019
Rental revenue $ 35,390 $ 48,145
Dividend income 43,741 13,408
Other income 100,953 110,522
$ 180,084 $ 172,075
Other gains and losses
Three months ended September 30,
2020 2019
(Loss) gain on disposal of property, plant and
equipment ($ 98) $ 287
Loss on disposal of investments ( 19,245) ( 1)
Currency exchange gain 130,410 115,290
Gain on financial assets and liabilities at fair
value through profit or loss 41,554 38,444
Gain arising from lease modifications 262 -
Other losses ( 6,148) ( 6,408)
$ 146,735 $ 147,612

(27) Other income

(28) Other gains and losses

~63~
Nine months ended September 30, Nine months ended September 30,
2020 2019
Loss on disposal of property, plant and
equipment ($ 320) ($ 1,719)
(Loss) gain on disposal of investments ( 26,975) 213
Currency exchange gain 496,949 387,052
Gain on financial assets and liabilities at fair
value through profit or loss 158,989 65,592
Loss arising from lease modifications ( 693) -
Other losses ( 66,239) ( 48,530)
$ 561,711 $ 402,608
Finance costs
Three months ended September 30,
2020 2019
Interest expense:
Bank borrowings $ 367,349 $ 525,017
Less: Capitalization of qualifying assets ( 12,807) ( 3,207)
Others 70,856 51,256
$ 425,398 $ 573,066
Nine months ended September 30,
2020 2019
Interest expense:
Bank borrowings $ 1,349,350 $ 1,619,107
Less: Capitalization of qualifying assets ( 26,434) ( 9,401)
Others 184,381 152,131
$ 1,507,297 $ 1,761,837
Additional information of expenses by nature
Three months ended September 30,
2020 2019
Employee benefit expense $ 2,169,179 $ 2,144,084
Depreciation charges on property and
equipment (including investment property
and right-of-use assets) $ 190,118 $ 185,682
Amortization charges on intangible assets $ 16,290 $ 3,588

(29) Finance costs

(30) Additional information of expenses by nature 

~64~

==> picture [480 x 413] intentionally omitted <==

----- Start of picture text -----

Nine months ended September 30,
2020 2019
Employee benefit expense $ 6,136,257 $ 5,959,223
Depreciation charges on property and
equipment (including investment property
and right-of-use assets) $ 553,275 $ 543,348
Amortization charges on intangible assets $ 47,770 $ 12,670
(31) Employee benefit expense
Three months ended September 30,
2020 2019
Wages and salaries $ 1,921,256 $ 1,870,258
Directors muneration 10,816 11,451
Labor and health insurance fees 90,856 97,729
Pension costs 75,103 95,083
Other personnel expenses 71,148 69,563
$ 2,169,179 $ 2,144,084
Nine months ended September 30,
2020 2019
Wages and salaries $ 5,449,392 $ 5,143,501
Directors muneration 30,608 34,163
Labor and health insurance fees 247,976 276,190
Pension costs 204,959 289,369
Other personnel expenses 203,322 216,000
$ 6,136,257 $ 5,959,223
----- End of picture text -----

  • 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 dire emuneration. The ratio shall be between 0.01% ~5% for employe tion and shall not be higher than 3% fo remuneration.

  • B. For the three months ended September 30, 2020 and 2019, and nine months ended September 30, 2020 and 2019, em compensation was accrued at $8,013, $8,713, $22,388 and $26,138, respectively; while d remuneration was accrued at $8,750, $10,500, $26,250 and $31,500, 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 three months ended September 30, 2020 and nine months ended September 30, 2020, and the percentage as prescribed by the Company s Articles of Incorporation.

For 2019, the employees compensation remuneration resolved by the Board 

~65~

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

C. Information about employ ensation and directors remuneration of the Company as resolved by the Board of Directors and shareholders will be po arket Observation the website of the Taiwan Stock Exchange.

(32) Income tax

  • A. Income tax expense

  • (a) Components of income tax expense:

tax
me tax expense
Components of income tax expense:
Three months ended September 30,
2020 2019
Current tax
Current tax on profits for the period $ 502,678 $ 443,654
Prior year income tax under estimation 12,972 4,741
Tax on undistributed surplus earnings - 235
Total current tax 515,650 448,630
Deferred tax
Origination and reversal of temporary
differences 6,207 ( 27,839)
Total deferred tax 6,207 ( 27,839)
Income tax expense $ 521,857 $ 420,791
Nine months ended September 30,
2020 2019
Current tax
Current tax on profits for the period $ 1,345,665 $ 1,123,290
Prior year income tax (over)
underestimation ( 28,740) 8,748
Tax on undistributed surplus earnings 900 177,423
Total current tax 1,317,825 1,309,461
Deferred tax
Origination and reversal of temporary
differences ( 20,232) 7,112
Total deferred tax ( 20,232) 7,112
Income tax expense $ 1,297,593 $ 1,316,573 
~66~
  • (b) The income tax (charge)/credit relating to components of other comprehensive loss (income) is as follows:


Currency translation differences
(


Currency translation differences
(
B. As of November 10, 2020, the Co
assessed and approved by the Tax Authority.		 Three months ended September 30,
2020
2019
$ 475)
($ 4,621)
Nine months ended September 30,
2020
2019
$ 788)
($ 3,608)
e tax returns through 2016 have been

(33) Earnings per share

Earnings per share
Three months ended September 30, 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 $ 2,257,062 1,679,057
 $ 1.34
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent $ 2,257,062 1,679,057
Assumed conversion of all dilutive
potential ordinary shares
Empl
compensation		 - 576
Profit attributable to ordinary
shareholders of the parent plus assumed
conversion of all dilutive potential
ordinary shares $ 2,257,062 1,679,633
 $ 1.33 
~67~
Three months ended September 30, 2019 Three months ended September 30, 2019 Three months ended September 30, 2019 Three months ended September 30, 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 $ 1,784,767
1,679,057
 $ 1.06
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent $ 1,784,767 1,679,057
Assumed conversion of all dilutive
potential ordinary shares
Employees
compensation		 -
228
Profit attributable to ordinary
shareholders of the parent plus assumed
conversion of all dilutive potential
ordinary shares $ 1,784,767
1,679,285
 $ 1.06
Nine months ended September 30, 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 (Note) $ 5,921,094
1,679,057
 $ 3.53
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent (Note) $ 5,921,094 1,679,057
Assumed conversion of all dilutive
potential ordinary shares
Empl
compensation		 -
908
Profit attributable to ordinary
shareholders of the parent plus assumed
conversion of all dilutive potential
ordinary shares $ 5,921,094
1,679,965
 $ 3.52

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

~68~
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent
Assumed conversion of all dilutive
potential ordinary shares
compensation
Profit attributable to ordinary
shareholders of the parent plus assumed
conversion of all dilutive potential
ordinary shares		 Nine months ended September 30, Nine months ended September 30, 2019

Amount after tax
$ 4,718,043
$ 4,718,043
-

$ 4,718,043
Weighted average
number of ordinary
shares outstanding
(shares in thousands)



1,679,057

1,679,057
879
1,679,936
Earnings per
share
(in dollars)
$ 2.81
$ 2.81

(34) Supplemental cash flow information

Partial payment of cash from investing activities

Supplemental cash flow information
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

Prepayments for business facilities at the
ending of the period

Less: Prepayments for business facilities at the
beginning of the period
(
Cash paid during the period
 Nine months ended September 30,
2020
2019
$ 5,567,377 $ 244,397
1,031 -
127 -
1,687)
-
$ 5,566,848
$ 244,397

2020

$ 5,567,377
1,031
127
1,687)

$ 5,566,848

(35) Changes in liabilities from financing activities

Short-term
Short-term
notes and

borrowings
bills payable

At January 1, 2020
$68,891,614 $5,555,424
Changes in cash flow
from financing
activities
( 12,726,841) ( 659,347)
Others
-
-

At September 30,
2020
$56,164,773
$4,896,077
 Long-term
borrowings
Lease
Liabilities
from financing
(Note)
liabilities
activities-gross
$12,833,373 $1,157,543 $ 88,437,954
12,085,718 ( 316,331) ( 1,616,801)
-
815,008
815,008
$24,919,091
$1,656,220
$ 87,636,161		 
~69~


At January 1, 2019

Modified retrospective
adjustments under
IFRS 16

Changes in cash flow
from financing
activities

Impact of changes in
foreign exchange
rate
(
At September 30,
2019
 Short-term
Short-term
notes and
Long-term
borrowings
Lease


borrowings
bills payable
(Note)
liabilities

$57,221,436 $4,957,027 $13,857,415 $ -
- - - 1,435,802
1,376,285 ( 260,525) ( 507,217) ( 333,215)
921,018)
-
12,776
148,472
(
$57,676,703
$4,696,502
$13,362,974
$1,251,059
 Liabilities
from financing
activities-gross
$ 76,035,878
1,435,802
275,328
759,770)
$ 76,987,238

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

7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

The Grou res are widely held so the Company has no ultimate parent and ultimate controlling party.

(2) Names of related parties and relationship

Names of related parties Relationship with the Group Chain Power Technology Corp. Investee accounted for using the equity method VITEC WPG Limited Gain Tune Logistics (Shanghai) Co., Ltd. Suzhou Xinning Logistics Co., Ltd. Suzhou Xinning Bonded Warehouse Co., Ltd. Eesource Corp. WT Microelectronics Co., Ltd. Haomao (Shanghai) Enterprise Development Co., Other related party Ltd. Autosys Co., Ltd. Subsidiary of investee accounted for using the equity method HongTech Electronics Co., Ltd. Maxtek Technology Co., Ltd. Morrihan International Corp. WT Microelectronics (Hong Kong) Limited NuVision Technology, Inc. WPG P.T. Electrindo Jaya Stockholder of a Gro unted for using the equity method 

~70~

Names of related parties Relationship with the Group 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




Sales of goods
Others

Associates

 Three months ended September 30,
2020
2019
$ 117,149 $ 209,101
180,490
45,013
$ 297,639
$ 254,114
Nine months ended September 30,
2020
2019
$ 348,375 $ 510,141
412,115
118,206
$ 760,490
$ 628,347

2020

$ 348,375
412,115

$ 760,490

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.

B. Purchases

Purchases


Purchases of goods
Associates



Purchases of goods
Associates
 Three months ended September 30,
2020
2019
$ 96,882
$ 5
Nine months ended September 30,
2020
2019
$ 238,852
$ 396

2020

$ 238,852

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

 September 30, 2020
$ 59,818
68,459

$ 128,277
 December 31, 2019

$ 81,751
16,541

$ 98,292
 September 30, 2019
$ 143,835
12,957
$ 156,792

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 

~71~

interest. There is no allowance for doubtful accounts held against receivables from related parties.

D. Other receivables

September 30, 2020
December 31, 2019

Other receivables
Others
$ - $ -
Associates
3,510
1,208

$ 3,510
$ 1,208

The above represents receivables from payments on behalf of others.
Payables to related parties
September 30, 2020
December 31, 2019

Accounts payable
Associates
$ 63,970
$ 653
 September 30, 2019
$ 12,180
1,667
$ 13,847
September 30, 2019
$ 4

E. Payables to related parties

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

F. Endorsements and guarantees provided to related parties


Associates
VITEC WPG Limited
 September 30, 2020
$ 65,475
 December 31, 2019

$ 67,455
 September 30, 2019
$ 69,840

G. Others

ions to WPG Holding Education Foundation were $1,800, $0, $5,600 and $4,400 for the three months ended September 30, 2020 and 2019, and nine months ended September 30, 2020 and 2019, respectively.

(4) Key management compensation

Key management compensation


Salaries and other short-term employee benefits

Post-employment benefits




Salaries and other short-term employee benefits

Post-employment benefits

 Three months ended September 30,
2020
2019
$ 73,190 $ 60,705
1,177
790
$ 74,367
$ 61,495
Nine months ended September 30,
2020
2019
$ 179,948 $ 161,867
2,286
2,372
$ 182,234
$ 164,239

2020

$ 179,948
2,286

$ 182,234
 
~72~

8. PLEDGED ASSETS

Pledged assets

(Note 1) September 30, 2020 December 31, 2019 September 30, 2019 Purpose of Collateral Financial assets at amortized cost

  • -Time deposits $ 43,572 $ 41,773 $ 45,207 Security for purchases and deposits for litigation

  • Financial assets at 7,503 7,503 7,503 Security for purchases fair value though profit or loss - non-current (Note 2)

  • Property, plant and equipment (including investment property)

  • -Land 1,109,443 1,109,543 1,112,522 Long-term and

short-term borrowings guarantee and security for purchases

  • -Buildings and structures 493,739 558,234 565,463

    • Construction in progress and equipment to be tested 6,744,985 - - $ 8,399,242 $ 1,717,053 $ 1,730,695

Guarantee for long-term borrowings

  • 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 September 30, 2020, December 31, 2019 and September 30, 2019.

  • Note 2: As of September 30, 2020, December 31, 2019 and September 30, 2019, the subsidiary - Silicon Application Corporation held 566 thousand shares of Kingmax Technology Inc., which have been pledged for purchases.

  • SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED CONTRACT COMMITMENTS In addition to Note 6(6), other commitments were as follows:

  • (1) Contingencies

None.

  • (2) Commitments

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

September 30, 2020 December 31, 2019 September 30, 2019

Property, plant and equipment and intangible assets $ 66,784 $ 5,081,991 $ 5,155,221 

~73~

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

September 30, 2020 December 31, 2019 September 30, 2019 $ 1,353,319 $ 767,624 $ 935,000 USD 119,518,000 USD 106,583,000 USD 103,664,000

  • C. As of September 30, 2020, the remaining payments for the contract of non-fixed car park the Group entered into amounted to $46,950.

10. SIGNIFICANT DISASTER LOSS

  • None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

  • (1) On September

  • preference shares, please refer to Note 6(14) for further information.

  • (2) To simplify the investment structure and integrate Group resource, the shareholders of the second-tier subsidiary, World Peace International (BVI) Limited, during their meeting

  • on October 23, 2020 approved to merge with Prime Future Technology Limited, and World Peace International (BVI) Limited was the surviving company. The effective date for the merger is set on October 30, 2020.

  • (3) On September 18, 2020, the Board of Directors of the Company resolved to increase its capital by issuing series B preference shares, and the issuing price is tentatively set at NT$50 per share, and the expected total issuance amount amounted to $5,000,000. This case was approved by the FSC on October 21, 2020.

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. 

~74~

(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
 September 30, 2020
$ 1,439,796

$ 529,378

$ 12,953,214
498,704
2,432,617
111,080,278
12,914,455
186,342
1,149,455

$ 141,215,065

$ 4,458

$ 56,164,773
4,896,077
131,140
69,129,549
6,447,488
24,919,091
262,557

$ 161,950,675

$ 1,656,220
 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
 September 30, 2019
$ 1,367,171
$ 32,035
$ 9,600,092
200,244
1,763,366
105,809,773
13,126,446
190,574
464,293
$ 131,154,788
$ 5,909
$ 57,676,703
4,696,502
19,103
63,682,664
5,234,632
13,362,974
92,355
$ 144,764,933
$ 1,251,059		 
~75~

  • B. Risk management policies

  • (a) The Gr ties 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 nits. 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 businesses involve some non-functional currency operations (the Com rtain subsidiar onal currency: NTD; other certain foreign subsidia l 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: 

~76~
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD
TWD
USD
RMB
USD
KRW
USD
JPY
HKD
USD
RMB
USD
Non-monetary items
RMB
USD
Financial liabilities
Monetary items
USD
TWD
USD
RMB
USD
KRW
USD
INR
HKD
USD
RMB
USD
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		 September 30, 2020 September 30, 2020 September 30, 2020

Foreign currency
amount
(in thousands)
Exchange rate
$ 645,048 29.10
20,498 6.82
33,008 1,173.50
3,597 105.59
56,275 0.13
733,301 0.15
30,952 0.15
560,797 29.10
77,170 6.82
18,782 1,173.50
7,489 73.82
33,213 0.13
673,500 0.15
3,049 1.17
December 31, 2019
Book value
(NTD)

$ 18,770,898
596,484
960,544
104,686
211,257
3,130,462
132,132
16,319,195
2,245,657
546,548
217,921
124,683
2,875,172
105,630

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		 
~77~
September 30, 2019
Foreign currency
amount Book value
(in thousands) Exchange rate
 (NTD)
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD
TWD		 $ 565,717 31.040 $ 17,559,866
USD
RMB		 30,848 7.14 957,529
USD
KRW		 35,954 1,187.91 1,116,016
USD
JPY		 5,404 107.85 167,753
HKD
USD		 85,755 0.13 339,417
Non-monetary items
RMB
USD		 31,635 0.14 137,614
Financial liabilities
Monetary items
USD
TWD		 517,535 31.040 16,064,284
USD
RMB		 145,122 7.14 4,504,575
USD
KRW		 63,113 1,187.91 1,959,031
USD
INR		 9,737 70.45 302,232
HKD
USD		 43,194 0.13 170,960
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 September 30, 2020 and 2019, and nine months ended September 30,
2020 and 2019 amounted to $130,410, $115,290, $496,949 and $387,052,
respectively. 
~78~

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
USD
JPY
HKD
USD
RMB
USD
Financial liabilities
Monetary items
USD
TWD
USD
RMB
USD
KRW
USD
INR
HKD
USD
RMB
USD
EUR
USD		 Nine months ended September 30, 2020

Sensitivity Analysis
Degree of
Variation
1%
1%
1%
1%
1%
1%
1%
1%
1%
1%
1%
1%
1%
Effect on
Profit or Loss
$ 187,709
5,965
9,605
1,047
2,113
31,305
163,192
22,457
5,465
2,179
1,247
28,752
1,056
Effect on Other
Comprehensive
Income
$ -
-
-
-
-
-
-
-
-
-
-
-
-
(Foreign currency:
functional currency)
Financial assets
Monetary items
USD
TWD
USD
RMB
USD
KRW
USD
JPY
HKD
USD
Financial liabilities
Monetary items
USD
TWD
USD
RMB
USD
KRW
USD
INR
HKD
USD		 Nine months ended September 30, 2019 Nine months ended September 30, 2019 Nine months ended September 30, 2019

Sensitivity Analysis
Degree of
Variation
1%
1%
1%
1%
1%
1%
1%
1%
1%
1%
Effect on
Profit or Loss
$ 175,599
9,575
11,160
1,678
3,394
160,643
45,046
19,590
3,022
1,710
Effect on Other
Comprehensive
Income
$ -
-
-
-
-
-
-
-
-
-		 
~79~

Price risk

  • i. The G 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 nine months ended September 30, 2020 and 2019 would have increased/ decreased by $14,301 and $13,648, 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 $5,294 and $320, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

  • i. The Gro from short-term borrowings with variable rates, which expose the Group to cash flow interest rate risk. For the nine months ended September 30, 2020 and 2019 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 nine months ended September 30, 2020 and 2019 would have decreased by $144,294 and $207,943, respectively. The main factor is that changes in interest expense result from floating rate borrowings.

  • (b) Credit risk

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

  • ii. The Group manages its credit risk taking into consideration the entire group concern. For banks and financial institutions, only independently rated parties with good ra 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 

~80~

regularly monitored.

  • iii. Under IFRS 9, if the contract payments are past due over one month based on the terms, there has been a significant increase in credit risk on that instrument since 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 counts receivable in accordance with credit rating of customer and customer types. The Group applies the simplified approach using the provision matrix based on the loss rate methodology to estimate expected credit loss.

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

  • vii. The Group used the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable. On September 30, 2020, December 31, 2019 and September 30, 2019, the provision matrix and loss rate methodology are as follows:

  • (i) Accounts receivable from general customers:

Not
past due
September 30, 2020
Expected loss rate
0.001%~
19.115%
Total book value $ 56,943,610
Loss allowance
$ 129,658
Not
past due
December 31, 2019
Expected loss rate
0%~
14.847%
Total book value $ 49,651,277
Loss allowance$ 89,954
Not
past due
September 30, 2019
Expected loss rate
0%~
20.016%
Total book value $ 48,993,369
Loss allowance
$ 90,210		 Not
past due		 One month
past due		 Two months
past due
1.182%~
91.667%
$ 203,386		 Three months
past due
7.334%~
100%
$ 225,185
$ 55,910
Three months
past due
6.516%~
100%
$ 89,300
$ 53,877
Three months
past due
7.251%~
99.875%
$ 249,855
$ 81,238		 Four months
past due		 Over four
months
past due
100%
$ 719,314		 Over four
months
past due
100%
$ 719,314		 Total

0.001%~
48.54%
$ 1,619,940
25.239%~
100%
$ 138,950		 $ 59,850,385
$ 129,658 $ 40,175 $ 28,020 $ 77,961 $ 719,314 $ 1,051,038
Not
past due		 One month
past due		 Two months
past due
1.363%~
100%
$ 338,028		 Four months
past due		 Over four
months
past due
100%
$ 470,899		 Total

0.12%~
85.804%
$ 3,458,793
30.147%~
100%
$ 61,643		 $ 54,069,940
$ 89,954 $ 60,060 $ 47,054 $ 26,675 $ 470,899 $ 748,519
Not
past due		 One month
past due		 Two months
past due
2.315%~
91.667%
$ 367,684		 Four months
past due		 Over four
months
past due
100%
$ 393,711		 Total

0.029%~
66.667%
$ 2,298,585
27.917%~
99.857%
$ 76,912		 $ 52,380,116
$ 90,210 $ 59,095 $ 54,512 $ 45,829 $393,711 $ 724,595 
~81~

(ii) Individually impaired and provisioned allowance for loss



Total book value

Loss allowance
 Individual
September 30, 2019
$ 420,208
$ 420,208
September 30, 2020
$ 147,492

$ 10,903
 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
 September 30, 2020
0%
$ 52,016,065

$ -
 December 31, 2019

0%
$ 57,329,004

$ -
 September 30, 2019
0%
$ 53,997,460
$ -

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

                              2020
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 ( 1) ( 133,657) 351,283 217,626 217,625
Write-offs during the
period - ( 847) ( 22,008) ( 22,855) ( 22,855)
Effect of foreign exchange( 1) ( 19,341) ( 15,805) ( 35,146) ( 35,147)
Transfers into overdue
receivables - ( 9,242) ( 10,951) ( 20,193)
( 20,193)
At September 30 $ - $ 10,903 $1,051,038 $1,061,941
 $1,061,941
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 ( 2,341) ( 48,839) 3,682 ( 45,157) ( 47,498)
Write-offs during the
period - ( 597) ( 4,354) ( 4,951) ( 4,951)
Effect of foreign exchange - 5,145 4,306 9,451 9,451
Transfers into overdue
receivables - - ( 4,246) ( 4,246)
( 4,246)
At September 30 $ 5 $ 420,208 $ 724,595 $1,144,803
 $1,144,808

(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 
~82~

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 Gro s debt financing plans and covenant compliance.

  • ii. The table below analyses the Group -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.

Non-derivative financial liabilities:

September 30, 2020
Less than 1 year
Short-term
borrowings
$ 56,341,974
Short-term notes and
bills payable
4,900,000
Financial liabilities
measured at fair
value through profit
or loss
4,458
Notes payable
131,140
Accounts payable
69,065,579
Accounts payable -
related parties
63,970
Other payables
6,447,488
Lease liabilities
469,773
Long-term borrowings
(including current
portion)
501,499		 Between 1
and 2 years
$ -
-
-
-
-
-
-
299,987
7,531,674		 Between 2
and 5 years
$ -
-
-
-
-
-
-
340,792
12,813,483		 Over 5 years
$ -
-
-
-
-
-
-
1,056,607
5,274,176		 
~83~

Non-derivative financial liabilities:

December 31, 2019
Less than 1 year
Short-term
borrowings
$ 69,231,969
Short-term notes and
bills payable
5,560,000
Financial liabilities
measured at fair
value through profit
or loss
16,051
Notes payable
34,642
Accounts payable
63,588,170
Accounts payable -
related parties
653
Other payables
5,697,289
Lease liabilities
476,832
Long-term borrowings
(including current
portion)
5,631,937
Non-derivative financial liabilities:
September 30, 2019
Less than 1 year
Short-term
borrowings
$ 57,822,272
Short-term notes and
bills payable
4,700,000
Financial liabilities
measured at fair
value through profit
or loss
5,909
Notes payable
19,103
Accounts payable
63,682,664
Other payables
5,234,632
Lease liabilities
477,758
Long-term borrowings
(including current
portion)
5,895,880		 Between 1
and 2 years
$ -
-
-
-
-
-
-
459,436
7,381,807
Between 1
and 2 years
$ -
-
-
-
-
-
429,727
444,860		 Between 2
and 5 years
$ -
-
-
-
-
-
-
293,421
88,615
Between 2
and 5 years
$ -
-
-
-
-
-
390,250
7,362,585		 Over 5 years
$ -
-
-
-
-
-
-
43,714
-
Over 5 years
$ -
-
-
-
-
-
55,644
-

(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 

~84~

value of the G 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 nvestment 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 n equity investment without active market is included in Level 3.

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

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

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

follows:
(a) The related information on the nature of the assets and liabilities is as follows:
September 30, 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 $ - $ 9,705 $ - $ 9,705
Equity securities 245,225 34,935 1,149,931 1,430,091
Financial assets at fair value
through other comprehensive
income
Equity securities 494,422
-
34,956
529,378
$ 739,647
$ 44,640
$1,184,887
$1,969,174
Liabilities
Recurring fair value measurements
Financial liabilities held for trading
Forward exchange contracts and
options $ -
$ 4,458
$ -
$		 4,458 
~85~
December 31, 2019
Assets
Recurring fair value measurements
Financial assets at fair value
through profit or loss
Forward exchange contracts
Beneficiary certificates
Equity securities
Financial assets at fair value
through other comprehensive
income
Equity securities
Liabilities
Recurring fair value measurements
Financial liabilities held for trading
Forward exchange contracts
September 30, 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
Financial liabilities held for trading
Forward exchange contracts		 Level 1
$ -
-
166,625
-
$ 166,625

$ -
Level 1
$ -
148,607
-
$ 148,607

$ -		 Level 2
$ 2,513
300,054
33,103
-
$ 335,670
$ 16,051
Level 2
$ 2,381
40,898
-
$ 43,279
$ 5,909		 Level 3
$ -
-
1,152,863
32,035
$1,184,898
$ -
Level 3
$ -
1,175,285
32,035
$1,207,320
$ -		 Total
$ 2,513
300,054
1,352,591
32,035
$1,687,193
$ 16,051
Total
$ 2,381
1,364,790
32,035
$1,399,206
$ 5,909

  • (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 
~86~

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 relev s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs. In accordance with the 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.

  • 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 credit quality.

  • E. The following chart is the movement of Level 3 for the nine months ended September 30, 2020 and 2019:

2020 and 2019:
2020 2019
At January 1 $ 1,184,898 $ 1,142,927
Additions 36,910 102,096
Capital reduction ( 28,912) ( 16,926)
Transfer out from level 3 - ( 10,000)
Gains on valuation ( 3,069) 5,220
Effect of foreign exchange ( 4,940) ( 15,997)
At September 30 $ 1,184,887 $ 1,207,320

  • F. For the nine months ended September 30, 2020, there was no transfer into or out from Level 3. For the nine months ended September 30, 2019, transfers out from level 3 refer to the reclassification in relation to the investee company becoming a public company.

  • 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 

~87~

requirements in IFRS. The related valuation results are reported to management monthly. Management is responsible for managing and reviewing valuation processes.

  • H. The following is the qualitative information on significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:
Fair value at Significant Range Relationship
September 30, Valuation unobservable (weighted of inputs to
2020 technique
 input
 average) fair value
Non-derivative
equity:
Equity $ 1,184,887 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
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
September 30, Valuation unobservable (weighted of inputs to
2019 technique
 input
 average) fair value
Non-derivative
equity:
Equity $ 1,207,320 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: 
~88~
Input
Financial assets
Equity
instrument
Net asset
value		 Input Change September 30, 2020
Recognized in
profit or loss
Recognized in other
comprehensive income
Favourable
change
Unfavourable
change
Favourable
change
Unfavourable
change
$ 11,499
($ 11,499)
$ 350
($ 350)		 September 30, 2020
Recognized in
profit or loss
Recognized in other
comprehensive income
Favourable
change
Unfavourable
change
Favourable
change
Unfavourable
change
$ 11,499
($ 11,499)
$ 350
($ 350)		 September 30, 2020
Recognized in
profit or loss
Recognized in other
comprehensive income
Favourable
change
Unfavourable
change
Favourable
change
Unfavourable
change
$ 11,499
($ 11,499)
$ 350
($ 350)

Recognized in
profit or loss

Favourable
change


$ 11,499
(
Unfavourable
change
$ 11,499)
Favourable
change


$ 350
(

± 1%

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

September 30, 2019

Recognized in Recognized in other profit or loss comprehensive income Favourable Unfavourable Favourable Unfavourable Input Change change change change change Financial assets Equity Net asset ± 1% instrument value $ 11,753 ($ 11,753) $ 320 ($ 320)

13. SUPPLEMENTARY DISCLOSURES

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

(1) Significant transactions information

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

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

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

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

~89~

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

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

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

(2) Information on investee companies

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

(3) Information on investments in Mainland China

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

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

  • Any of the following significant transactions with investee companies in the Mainland Area, either directly or indirectly through a third area, and their prices, payment terms, and unrealized gains or losses: Information on significant transactions of the Company and subsidiary and investee company in Mainland China as of and for the nine months ended September 30, 2020 is provided in Note (1)J.

(4) Major shareholders information

Major shareholders information: Please refer to table 11. 

~90~
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 operating decision-maker uses the net income as basis for assessing the performance of the
s operating segments.		 (3)Reconciliation for segment income (loss) A. The net income reported to the chief operating decision-maker is measured in a manner consistent with revenues, costs and expenses in the statement of comprehensive income. As the amounts in the statement provided to the chief operating decision-maker for managing segment are in agreement with the amounts in the statements of segment income, reconciliation is not needed. B. The segment information of the reportable segments provided to the chief operating decision-maker for the three months and nine months ended September 30, 2020 and 2019 is as follows: Three months ended September 30, 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
$ 84,333,475 $ 19,644,884 $ 20,262,487 $ 23,010,739 $ 5,636,512
$ 17,098,865 $ - $ 169,986,962		 Revenue from internal customers
2,711,365
1,725,491
365,864
2,004,947
158,165
5,804,516
( 12,770,348)
-		 Total revenue
$ 87,044,840
$ 21,370,375
$ 20,628,351
$ 25,015,686
$ 5,794,677
$ 22,903,381
($ 12,770,348)
$ 169,986,962		 Segment profit
$ 1,453,989
$ 592,764
$ 548,551
$ 396,558
$ 173,289
$ 350,393
$ 238,889
$ 3,754,433		 Net income
$ 877,687
$ 382,862
$ 298,357
$ 175,526
$ 73,108
$ 2,447,400
($ 1,969,754)
$ 2,285,186
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
$ 70,640,886 $ 18,400,915 $ 17,701,396 $ 17,155,386 $ 4,237,026 $ 12,685,286 $ -
$ 140,820,895		 Revenue from internal customers
3,668,542
1,251,792
471,082
1,700,510
753,420
791,605
( 8,636,951)
-		 Total revenue
$ 74,309,428
$ 19,652,707
$ 18,172,478
$ 18,855,896
$ 4,990,446
$ 13,476,891
($ 8,636,951)
$ 140,820,895		 Segment profit
$ 1,559,254
$ 481,557
$ 459,745
$ 468,093
$ 125,748
$ 282,189
$ 229,627
$ 3,606,213		 Net income
$ 888,187
$ 272,605
$ 290,647
$ 291,917
$ 33,190
$ 1,794,866
($ 1,773,298)
$ 1,798,114		 Nine months ended September 30, 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
$ 229,775,699 $ 48,617,132 $ 54,241,943 $ 61,953,470 $ 13,365,103 $ 42,888,868 $ -
$ 450,842,215		 Revenue from internal customers
8,632,300
4,558,016
1,018,004
5,027,593
526,576
12,765,775
( 32,528,264)
-		 Total revenue
$ 238,407,999
$ 53,175,148
$ 55,259,947
$ 66,981,063
$ 13,891,679
$ 55,654,643
($ 32,528,264)
$ 450,842,215		 Segment profit
$ 4,463,202
$ 1,542,315
$ 1,406,612
$ 1,226,761
$ 406,077
$ 988,347
$ 596,756
$ 10,630,070		 Net income
$ 2,493,465
$ 788,059
$ 858,972
$ 716,906
$ 146,939
$ 6,471,861
($ 5,384,551)
$ 6,091,651
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
$ 186,786,992 $ 49,351,775 $ 50,750,273 $ 47,501,072 $ 10,389,282 $ 37,049,378 $ -
$ 381,828,772		 Revenue from internal customers
10,683,762
3,264,208
1,203,114
4,529,382
1,235,764
2,494,976
( 23,411,206)
-		 Total revenue
$ 197,470,754
$ 52,615,983
$ 51,953,387
$ 52,030,454
$ 11,625,046
$ 39,544,354
($ 23,411,206)
$ 381,828,772		 Segment profit
$ 4,443,584
$ 1,342,045
$ 1,236,464
$ 1,218,639
$ 335,696
$ 644,357
$ 778,622
$ 9,999,407		 Net income
$ 2,448,329
$ 696,651
$ 756,729
$ 806,922
$ 91,798
$ 4,816,669
($ 4,863,853)
$ 4,753,245

WPG Holdings Limited and Subsidiaries

Loans to others

Table 1

Nine months ended September 30, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor
Borrower
General ledger
account
Is a
related
party
Maximum
outstanding
balance during
the nine months
ended
September 30,
2020
Balance at
September 30,
2020
Interest
rate
Nature of loan
(Note 8)
Amount of
transactions
with the
borrower
Reason for
short-term
financing
Allowance
for
doubtful
accounts
Actual amount
drawn down
No.		 Collateral Limit on loans
granted to a single
party		 Ceiling on total
loansgranted		 Footnote
Item
Value
1
Apache Korea Corp. WPG Korea Co., Ltd. Other
receivables -
related parties
Y
49,596
$ 49,596
$ 49,596
$ 3.50
2
-
$ Operations
-
$ 2
Genuine C&C
(IndoChina) Pte Ltd.
World Peace
International (South
Asia) Pte Ltd.
Other
receivables -
related parties
Y
58,200
58,200
58,200
1.48
2
-
Operations
-
3
GENUINE C&C
HOLDING INC.
(Seychelles)
Peng Yu
International Limited
Other
receivables -
related parties
Y
116,400
116,400
116,400
3.50~3.90
2
-
Operations
-
4
Richpower
Electronic Devices
Pte., Ltd.
Yosun Singapore Pte
Ltd.
Other
receivables -
related parties
Y
218,250
218,250
213,885
1.48~2.76
2
-
Operations
-
5
World Peace
International (South
Asia) Pte Ltd.
WPG Americas Inc.
Other
receivables-
related parties
Y
291,000
291,000
-
0.00
2
-
Operations
-
5
World Peace
International (South
Asia) Pte Ltd.
WPI International
(Hong Kong)
Limited
Other
receivables -
related parties
Y
1,746,000
1,746,000
-
0.00
2
-
Operations
-
6
World Peace
International Pte Ltd.
World Peace
International (South
Asia) Pte Ltd.
Other
receivables -
related parties
Y
116,400
116,400
116,400
1.48
2
-
Operations
-
7
WPG C&C
Computers And
Peripheral (India)
Private Limited
World Peace
International (India)
Pvt., Ltd.
Other
receivables -
related parties
Y
82,782
-
-
0.00
2
-
Operations
-
8
WPG C&C Limited
WPI International
(Hong Kong)
Limited
Other
receivables -
related parties
Y
232,800
232,800
232,800
2.02
2
-
Operations
-
9
WPG India
Electronics Pvt Ltd.
World Peace
International (India)
Pvt., Ltd.
Other
receivables -
related parties
Y
39,420
-
-
0.00
2
-
Operations
-		 None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-		 73,409
$ 77,908
130,981
438,832
6,696,515
6,696,515
2,211,997
364,825
264,165
160,448		 73,409
$ 77,908
130,981
438,832
6,696,515
6,696,515
2,211,997
364,825
264,165
160,448		 Note 1
Note 3
Note 5
Note 4
Note 3
Note 3
Note 3
Note 3
Note 5
Note 3		 
Table 1, Page 1
No.
Creditor
Borrower
General ledger
account
Is a
related
party
Maximum
outstanding
balance during
the nine months
ended
September 30,
2020
Balance at
September 30,
2020
Actual amount
drawn down
Interest
rate
Nature of loan
(Note 8)
Amount of
transactions
with the
borrower
Reason for
short-term
financing
Allowance
for
doubtful
accounts		 Collateral Limit on loans
granted to a single
party		 Ceiling on total
loansgranted		 Footnote
Item
Value
10
WPG South Asia Pte.
Ltd.
World Peace
International (South
Asia) Pte Ltd.
Other
receivables -
related parties
Y
436,500
$ 436,500
$ -
$ 0.00
2
-
$ Operations
-
$ 10
WPG South Asia Pte.
Ltd.
WPG Americas Inc.
Other
receivables -
related parties
Y
291,000
291,000
-
0.00
2
-
Operations
-
10
WPG South Asia Pte.
Ltd.
WPG Korea Co., Ltd. Other
receivables-
related parties
Y
582,000
291,000
261,900
3.50
2
-
Operations
-
10
WPG South Asia Pte.
Ltd.
Yosun Singapore Pte
Ltd.
Other
receivables -
related parties
Y
87,300
87,300
58,200
1.48
2
-
Operations
-
11
Yosun Hong Kong
Corp. Ltd.
WPG Americas Inc.
Other
receivables -
related parties
Y
582,000
-
-
0.00
2
-
Operations
-
11
Yosun Hong Kong
Corp. Ltd.
WPG China Inc.
Other
receivables -
related parties
Y
3,415,200
3,415,200
2,881,575
3.84~5.03
2
-
Operations
-
11
Yosun Hong Kong
Corp. Ltd.
WPG Electronics
(HK) Limited
Other
receivables -
related parties
Y
1,455,000
582,000
291,000
2.75
2
-
Operations
-
11
Yosun Hong Kong
Corp. Ltd.
Richpower
Electronic Devices
Co., Limited
Other
receivables -
related parties
Y
873,000
873,000
-
0.00
2
-
Operations
-
11
Yosun Hong Kong
Corp. Ltd.
Peng Yu
International Limited
Other
receivables-
related parties
Y
727,500
-
-
0.00
2
-
Operations
-
12
AECO Technology
Co., Ltd.
World Peace
Industrial Co., Ltd.
Other
receivables -
related parties
Y
320,000
87,200
86,200
1.30
2
-
Operations
-
13
AECO Electronics
Co., Ltd.
WPI International
(Hong Kong)
Limited
Other
receivables -
related parties
Y
698,400
698,400
698,400
1.50~2.02
2
-
Operations
-
14
WPG SCM Limited
WPG Americas Inc.
Other
receivables -
related parties
Y
582,000
582,000
582,000
2.23
2
-
Operations
-		 None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-		 1,393,613
$ 1,393,613
1,393,613
1,393,613
9,323,189
9,323,189
9,323,189
9,323,189
9,323,189
402,173
773,597
1,085,217		 1,393,613
$ 1,393,613
1,393,613
1,393,613
9,323,189
9,323,189
9,323,189
9,323,189
9,323,189
402,173
773,597
1,085,217		 Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 2
Note 5
Note 4		 
Table 1, Page 2
Maximum
outstanding
balance during
the nine months
ended
September 30,
2020
Balance at
September 30,
2020
Actual amount
drawn down
Interest
rate
Nature of loan
(Note 8)
No.
Creditor
Borrower
General ledger
account
Is a
related
party
Amount of
transactions
with the
borrower
Reason for
short-term
financing
Allowance
for
doubtful
accounts		 Collateral Limit on loans
granted to a single
party		 Ceiling on total
loansgranted		 Footnote
Item
Value
14
WPG SCM Limited
WPG Holdings
Limited
Other
receivables-
related parties
Y
232,800
$ -
$ -
$ 0.00
2
-
$ Operations
-
$ 14
WPG SCM Limited
WPG Electronics
(HK) Limited
Other
receivables-
related parties
Y
291,000
291,000
291,000
1.33
2
-
Operations
-
14
WPG SCM Limited
Peng Yu
International Limited
Other
receivables-
related parties
Y
582,000
-
-
0.00
2
-
Operations
-
15
Yosun Industrial
Corp.
Yosun Hong Kong
Corp. Ltd.
Other
receivables-
related parties
Y
873,000
873,000
-
0.00
2
-
Operations
-
15
Yosun Industrial
Corp.
Richpower
Electronic Devices
Co., Limited
Other
receivables -
related parties
Y
1,746,000
1,746,000
582,000
1.70
2
-
Operations
-
16
Yosun South China
Corp. Ltd.
WPG China (SZ)
Inc.
Other
receivables -
related parties
Y
119,532
106,725
106,725
2.80
2
-
Operations
-
16
Yosun South China
Corp. Ltd.
WPG China Inc.
Other
receivables -
related parties
Y
64,035
64,035
64,035
2.80
2
-
Operations
-
17
Yosun Shanghai
Corp. Ltd.
WPG China (SZ)
Inc.
Other
receivables -
related parties
Y
311,637
311,637
311,637
2.80
2
-
Operations
-
17
Yosun Shanghai
Corp. Ltd.
WPG China Inc.
Other
receivables-
related parties
Y
149,415
12,807
12,807
2.80
2
-
Operations
-
18
WPG Investment
Co., Ltd.
WPG Holdings
Limited
Other
receivables -
related parties
Y
125,000
-
-
0.00
2
-
Operations
-
19
WPG C&C Shanghai
Co., Ltd.
Trigolduo (Shanghai)
Industrial
Development Ltd.
Other
receivables -
related parties
Y
26,596
26,596
22,327
4.60
2
-
Operations
-
19
WPG C&C Shanghai
Co., Ltd.
Trigold Tongle
(Shanghai) Industrial
Development Ltd.
Other
receivables -
related parties
Y
12,807
12,807
7,471
4.60
2
-
Operations
-		 None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-		 1,085,217
$ 1,085,217
1,085,217
3,263,137
3,263,137
204,409
204,409
360,100
360,100
834,708
137,256
137,256		 1,085,217
$ 1,085,217
1,085,217
3,263,137
3,263,137
204,409
204,409
360,100
360,100
834,708
343,139
343,139		 Note 4
Note 4
Note 4
Note 2
Note 2
Note 5
Note 5
Note 5
Note 5
Note 2
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 nine months
ended
September 30,
2020
Balance at
September 30,
2020
Actual amount
drawn down
Interest
rate
Nature of loan
(Note 8)
No.
Creditor
Borrower
General ledger
account
Is a
related
party		 Collateral Limit on loans
granted to a single
party		 Ceiling on total
loansgranted		 Footnote
Item
Value
20
WPI International
(Hong Kong)
Limited
WPG Korea Co., Ltd. Other
receivables -
related parties
Y
582,000
$ 582,000
$ 232,800
$ 3.50
2
-
$ Operations
-
$ 20
WPI International
(Hong Kong)
Limited
WPG Electronics
(HK) Limited
Other
receivables -
related parties
Y
582,000
582,000
582,000
1.90
2
-
Operations
-
20
WPI International
(Hong Kong)
Limited
Peng Yu
International Limited
Other
receivables -
related parties
Y
407,400
407,400
-
0.00
2
-
Operations
-
21
World Peace
Industrial Co., Ltd.
WPI International
(Hong Kong)
Limited
Other
receivables -
related parties
Y
2,764,500
2,764,500
1,891,500
3.20
2
-
Operations
-
21
World Peace
Industrial Co., Ltd.
Long-Think
International Co.,
Ltd.
Other
receivables-
related parties
Y
43,650
-
-
0.00
2
-
Operations
-
21
World Peace
Industrial Co., Ltd.
Longview
Technology Inc.
Other
receivables-
related parties
Y
892,000
601,000
47,852
1.70~1.95
2
-
Operations
-
22
Everwiner Enterprise
Co., Ltd.
Pernas Electronics
Co., Ltd.
Other
receivables -
related parties
Y
200,000
200,000
200,000
1.37
2
-
Operations
-
23
Silicon Application
corp.
WPG Electronics
(HK) Limited
Other
receivables -
related parties
Y
2,037,000
2,037,000
2,037,000
2.00~3.20
2
-
Operations
-
24
Silicon Application
(BVI) Corporation
Silicon Application
Corp.
Other
receivables -
related parties
Y
1,164,000
1,164,000
1,164,000
1.50
2
-
Operations
-
24
Silicon Application
(BVI) Corporation
Peng Yu
International Limited
Other
receivables -
related parties
Y
116,400
116,400
116,400
2.00~3.20
2
-
Operations
-
25
Silicon Application
Company Limited
Yosun Hong Kong
Corp. Ltd.
Other
receivables -
related parties
Y
582,000
582,000
582,000
1.55~3.09
2
-
Operations
-
25
Silicon Application
Company Limited
WPG China Inc.
Other
receivables -
related parties
Y
291,000
-
-
0.00
2
-
Operations
-		 None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-		 19,395,930
$ 19,395,930
19,395,930
7,479,575
7,479,575
7,479,575
240,104
2,947,097
1,259,251
3,148,128
1,772,876
1,772,876		 19,395,930
$ 19,395,930
19,395,930
9,972,767
9,972,767
9,972,767
240,104
2,947,097
3,148,128
3,148,128
1,772,876
1,772,876		 Note 5
Note 5
Note 5
Note 6
Note 6
Note 6
Note 2
Note 2
Note 5
Note 5
Note 5
Note 5		 
Table 1, Page 4
No.
Creditor
Borrower
General ledger
account
Is a
related
party
Maximum
outstanding
balance during
the nine months
ended
September 30,
2020
Balance at
September 30,
2020
Actual amount
drawn down
Interest
rate
Nature of loan
(Note 8)
Amount of
transactions
with the
borrower
Reason for
short-term
financing
Allowance
for
doubtful
accounts		 Collateral Limit on loans
granted to a single
party		 Ceiling on total
loansgranted		 Footnote
Item
Value
25
Silicon Application
Company Limited
WPG Electronics
(HK) Limited
Other
receivables -
related parties
Y
465,600
$ 465,600
$ 465,600
$ 2.00~3.20
2
-
$ Operations
-
$ 25
Silicon Application
Company Limited
Silicon Application
Corp.
Other
receivables-
related parties
Y
669,300
669,300
669,300
1.50~1.70
2
-
Operations
-
25
Silicon Application
Company Limited
Peng Yu
International Limited
Other
receivables-
related parties
Y
174,600
-
-
0.00
2
-
Operations
-
26
Sertek Limited
Yosun Hong Kong
Corp. Ltd.
Other
receivables -
related parties
Y
424,860
424,860
66,930
2.20
2
-
Operations
-
27
Sertek Incorporated
Richpower
Electronic Devices
Co., Ltd
Other
receivables -
related parties
Y
523,800
523,800
-
0.00
2
-
Operations
-
28
Frontek Technology
Corporation
Apache
Communication Inc.
Other
receivables -
related parties
Y
291,000
212,085
-
0.00
2
-
Operations
-
29
Genuine C&C Inc.
Hoban Inc.
Other
receivables -
related parties
Y
50,000
50,000
-
0.00
2
-
Operations
-
29
Genuine C&C Inc.
Peng Yu
International Limited
Other
receivables -
related parties
Y
300,000
-
-
0.00
2
-
Operations
-
30
Richpower
Electronic Devices
Co., Limited
Yosun Hong Kong
Corp. Ltd.
Other
receivables -
related parties
Y
582,000
582,000
-
0.00
2
-
Operations
-
30
Richpower
Electronic Devices
Co., Limited
Silicon Application
Corp.
Other
receivables -
related parties
Y
582,000
582,000
582,000
1.55~3.09
2
-
Operations
-
31
Long-Think
International (Hong
Kong) Limited
WPI International
(Hong Kong)
Limited
Other
receivables -
related parties
Y
436,500
407,400
407,400
2.02
2
-
Operations
-
32
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
-		 None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-
None
-		 1,772,876
$ 709,151
1,772,876
77,289
578,555
524,166
444,799
444,799
2,371,476
948,590
534,142
19,214		 1,772,876
$ 1,772,876
1,772,876
77,289
578,555
838,665
444,799
444,799
2,371,476
2,371,476
534,142
19,214		 Note 5
Note 5
Note 5
Note 5
Note 2
Note 7
Note 2
Note 2
Note 5
Note 5
Note 5
Note 2		 
Table 1, Page 5
No.
Creditor
Borrower
General ledger
account
Is a
related
party
Maximum
outstanding
balance during
the nine months
ended
September 30,
2020
Balance at
September 30,
2020
Actual amount
drawn down
Interest
rate
Nature of loan
(Note 8)
Amount of
transactions
with the
borrower
Reason for
short-term
financing
Allowance
for
doubtful
accounts		 Collateral Limit on loans
granted to a single
party		 Ceiling on total
loansgranted		 Footnote
Item
Value
33
Peng Yu (Shanghai)
Digital Technology
Co., Ltd.
WPG C&C Shanghai
Co., Ltd.
Other
receivables -
related parties
Y
157,953
$ 132,339
$ 132,339
$ 3.95~4.60
2
-
$ Operations
-
$ 33
Peng Yu (Shanghai)
Digital Technology
Co., Ltd.
Trigolduo (Shanghai)
Industrial
Development Ltd.
Other
receivables -
related parties
Y
34,152
12,807
12,807
4.60
2
-
Operations
-
34
Trigolduo (Shanghai)
Industrial
Development Ltd.
Trigold Tongle
(Shanghai) Industrial
Development Ltd.
Other
receivables -
related parties
Y
5,977
-
-
0.00
2
-
Operations
-		 None
-
None
-
None
-		 303,423
$ 121,369
454		 303,423
$ 303,423
454		 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 or to ultimate parent company should not be in excess of 200% of creditor’s net assets. For borrower not fulfilling said criteria, the limit should not exceed 40% of the creditor’s net assets.

  • Note 5: Accumulated financing activities to any company or person should not be in excess of 100% of creditor’s net assets. Limit on loans to a single company is as follows: (1) For business transaction to the creditor, the individual limit should not exceed the amount of business transactions; the amount of business transactions means the higher between sales and purchases.

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

  • Note 6: Accumulated financing activities to any company or person should not be in excess of 40% of creditor’s net assets. Limit on loans to a single company is as follows: (1) For business transaction to the creditor, the individual limit should not exceed the amount of business transactions; the amount of business transactions means the higher between sales and purchases.

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

  • Note 7: Accumulated financing activities to any company or person should not be in excess of 40% of creditor’s net assets. Limit on loans to a single company is as follows: (1) For business transaction to the creditor, the individual limit should not exceed the amount of business transactions; the amount of business transactions means the higher between sales and purchases.

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

  • Note 8: The column of ‘Nature of loan’ shall fill in 1. ‘Business transaction or 2. ‘Short-term financing’. 

Table 1, Page 6

Table 2

WPG Holdings Limited and Subsidiaries

Provision of endorsements and guarantees to others Nine months ended September 30, 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 September 30,
2020		 Outstanding
endorsement/
guarantee
amount at
September 30,
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
1
1
2
2
2
3
3
4
5
6		 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
International Pte
Ltd.
World Peace
International Pte
Ltd.
World Peace
International Pte
Ltd.
Asian Information
Technology Inc.
Asian Information
Technology Inc.
Apache
Communication Inc.
Frontek Technology
Corporation
Yosun Industrial
Corp.		 World Peace Industrial
Co., Ltd.
Note 1
WPI International
(Hong Kong) Limited
Note 1
Vitec WPG Limited
Note 3
World Peace
International (South
Asia) Pte Ltd.
Note 1
WPG Electronics
(HK) Limited
Note 3
WPG Korea Co., Ltd.
Note 3
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
WPG China Inc.
Note 3
Frontek Technology
Corporation
Note 1
Asian Information
Technology Inc.
Note 2
Asian Information
Technology Inc.
Note 2
Yosun Singapore Pte
Ltd.
Note 1		 31,818,546
$ 12,465,959
12,465,959
12,465,959
12,465,959
12,465,959
7,344,618
7,344,618
7,344,618
2,306,257
2,306,257
606,495
838,665
8,157,843		 153,510
$ 1,644,150
65,475
820,200
145,500
60,000
174,600
128,040
291,000
14,550
1,662,790
160,000
651,000
1,201,830		 89,423
$ 1,159,635
65,475
820,200
145,500
60,000
160,050
128,040
291,000
-
838,670
160,000
611,000
1,076,700		 89,423
$ 560,536
65,475
771,015
-
-
19,341
35,478
88,616
-
133,377
145,485
608,708
539,647		 89,423
$ -
-
-
-
-
-
-
-
-
-
-
-
-		 0.14
4.65
0.26
3.29
0.58
0.24
4.36
3.49
7.92
0.00
14.55
10.55
29.14
13.20		 31,818,546
$ 19,945,534
19,945,534
19,945,534
19,945,534
19,945,534
7,344,618
7,344,618
7,344,618
2,882,821
2,882,821
758,119
1,048,332
16,315,686		 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
Notes 4 and 5
N
Note 6
N
Note 6
N
Note 6
N
Note 6
N
Note 6
N
Note 7
N
Note 7
N
Note 7
Y
Note 8
N
Note 8
N
Note 11
N
Note 11
N
Note 9		 
Table 2, Page 7
Number Endorser/
guarantor		 Partybeingendorsed/guaranteed Limit on
endorsements/
guarantees
provided for a
singleparty		 Maximum
outstanding
endorsement/
guarantee amount as
of September 30,
2020		 Outstanding
endorsement/
guarantee
amount at
September 30,
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
6
6
6
7
7
7
8		 Yosun Industrial
Corp.
Yosun Industrial
Corp.
Yosun Industrial
Corp.
Trigold Holdings
Limited
Trigold Holdings
Limited
Trigold Holdings
Limited
Pernas Electronics
Co., Ltd.		 Yosun Hong Kong
Corp. Ltd.
Note 1
Sertek Incorporated
Note 1
Richpower Electronic
Devices Co., Limited
Note 1
Peng Yu (Shanghai)
Digital Technology
Co., Ltd.
Note 1
Peng Yu International
Limited
Note 1
WPG C&C Shanghai
Co., Ltd.
Note 1
Silicon Application
corp.
Note 2		 8,157,843
$ 8,157,843
8,157,843
609,001
609,001
609,001
580,794		 291,000
$ 2,328,000
1,200,000
42,690
58,200
128,070
100,000		 291,000
$ 2,328,000
600,000
-
58,200
128,070
100,000		 100,458
$ 1,406,934
328,508
-
58,200
128,070
5,823		 -
-
-
-
-
-
-		 3.57
28.54
7.35
0.00
4.78
10.51
8.61		 16,315,686
$ 16,315,686
16,315,686
609,001
609,001
609,001
580,794		 N
N
N
N
N
N
N		 N
N
N
N
N
N
N		 N
Note 9
N
Note 9
N
Note 9
Y
Note 10
N
Note 10
Y
Note 10
N
Note 12

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

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

Note 3: An affiliate.

  • Note 4: The guarantee amount should not exceed 50% of guarantor’s net assets; the limit to a single company should not exceed 50% of the Company’s stockholder’s equity. For business transaction with the Company, the guarantee amount should not exceed the amount of

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

  • Note 5: There are 8,999 thousand shares of WPG Investment Co., Ltd. which have been pledged for purchases for World Peace Industrial Co., Ltd. The book value of those pledged investments is $89,423.

  • 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 8

WPG Holdings Limited and Subsidiaries

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

Nine months ended September 30, 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 ofSeptember30,2020 As ofSeptember30,2020 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 fair value
through profit or loss- non-
current
Financial assets at fair value
through profit or loss- non-
current
Financial assets at fair value
through profit or loss- non-
current, etc.
Financial assets at fair value
through profit or loss- non-
current
Financial assets at fair value
through profit or loss- non-
current
Financial assets at fair value
through profit or loss- non-
current
Financial assets at fair value
through profit or loss- non-
current
Financial assets at fair value
through profit or loss- non-
current
Financial assets at fair value
through profit or loss- non-
current
Financial assets at fair value
through profit or loss- non-
current, etc.
Financial assets at fair value
through profit or loss- non-
current		 230
-
-
-
-
668
-
700
-
-
-		 137,045
$ 331,730
496,880
12,436
24,068
6,684
25,472
10,046
36,445
280,317
6,348		 1.46
-
-
-
-
3.32
-
9.52
-
-
-		 137,045
$ 331,730
496,880
12,436
24,068
6,684
25,472
10,046
36,445
280,317
6,348		 Note 2
Note 3		 
Table 3, Page 9
Securities held by Marketable securities Relationship with the
securities issuer		 General
ledger account		 As ofSeptember30,2020 As ofSeptember30,2020 Footnote
Number of shares
(in thousands)		 Bookvalue Ownership (%) Fairvalue(Note 1)
Asian Information Technology Inc.
Win-Win Systems Ltd.
WPG South Asia Pte. Ltd.
WPG China Inc.		 Hon Hai Precision industry Co., Ltd. etc. -
Equity securities
Silicon Electronics Company(s) Pte. Ltd. -
Equity securities
ViMOS Technologies GmBH - Equity
securities
CECI Technology Co. Ltd. etc. - Equity
securities		 None
None
None
None		 Financial assets at fair value
through profit or loss - current,
etc.
Financial assets at fair value
through profit or loss- non-
current
Financial assets at fair value
through profit or loss- non-
current
Financial assets at fair value
through profit or loss- non-
current		 -
180
20
-		 30,797
$ -
629
560,572		 -
-
9
-		 30,797
$ -
629
560,572

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

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

Note 3: There are 566 thousand shares of Kingmax Technology Inc. which have been pledged for purchases as of September 30, 2020. 

Table 3, Page 10

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

Nine months ended September 30, 2020

Table 4
Investor		 Marketable
securities		 General
ledger
account		 Counterparty Relationship with
the counterparty		 Balance as at January1,2020 Balance as at January1,2020 Addition Addition Disposal Disposal Expressed in thousands of NTD
(Except as otherwise indicated)
Balance as at September 30,2020		 Expressed in thousands of NTD
(Except as otherwise indicated)
Balance as at September 30,2020
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
WPG Holdings
Limited
WPG Holdings
Limited
WPG Investment
Co., Ltd.
Asian Information
Technology Inc.		 WT
Microelectronics
Co., Ltd. - common
shares
WT
Microelectronics
Co., Ltd.-
Preference shares
T3EX Global
Holdings Corp.
T3EX Global
Holdings Corp.
Apache
Communication
Inc.		 Note 1
Note 2
Note 3
Note 3
Note 1		 Stock exchange
market
WT
Microelectronics
Co., Ltd
Stock exchange
market
Stock exchange
market
Apache
Communication
Inc.		 None
None
None
None
Same ultimate
parent company		 -
-
-
-
107,000		 -
$ -
-
-
180,313		 177,110
24,284
10,112
1,735
47,300
(Note 4)		 8,111,638
$ 1,214,193
323,585
49,703
300,000		 -
-
-
-
-		 $ -
-
-
-
-		 $ -
-
-
-
-		 $ -
-
-
-
-		 177,110
24,284
10,112
1,735
154,300		 8,111,638
$ 1,214,193
323,585
49,703
480,313

Note 1: It is recorded as investments accounted for using the equity method. Note 2: It is recorded as prepayments for investments. Note 3: It is recorded as financial assets at fair value through other comprehensive income-non-current. Note 4: It included stock dividends distributed by Apache Communication Inc. in the amount of 17,300 thousand shares. 

Table 4, Page 11

Table 5

WPG Holdings Limited and Subsidiaries

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

Nine months ended September 30, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

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

Real estate
acquired by		 Real estate
acquired		 Date of the
event		 Transaction
amount		 Status of
payment
(Note2)		 Counterparty Relationship
with the
counterparty		 Original owner
who
sold the real
estate to
the counterparty		 Relationship
between the original
owner and the
acquirer		 Date of the
original
transaction		 Amount Basis or
reference used
in setting the
price		 Reason for
acquisition of
real estate and
status of the real
estate		 Other
commitments
The Company
The Company
The Company		 Office building A
in Taipei City
Nangang Dist.
Jingmao section
No. 70, No. 70-1
Taipei City
Nangang Dist.
Jingmao section
No. 70, No. 70-1
Taipei City
Nangang Dist.
Jingmao section
No. 70, No. 70-1		 2016.12
(Note 1)
2016.12
(Note 1)
2016.12
(Note 1)		 $ 4,533,954
1,063,114
843,765		 $ 4,527,288
1,063,114
843,765		 Ji Tai
Development
Co., Ltd.
Lee
Wang		 Non-related
party
Non-related
party
Non-related
party		 -
-
-		 -

-

-
 -
-
-		 $ -
-
-		 It was appraised by
Honda real estate
appraising firm and
China real estate
appraising firm
It was appraised by
Honda real estate
appraising firm and
China real estate
appraising firm
It was appraised by
Honda real estate
appraising firm and
China real estate
appraising firm		 Operation needs
Operation needs
Operation needs		 None
None
None

Note 1: It was the date of contract.

Note 2: For the years ended December 31, 2017 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 nine months ended September 30, 2020, the amount was $5,065,490. 

Table 5, Page 12

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

Nine months ended September 30, 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.
"
"
"
"
"
"
Genuine C&C (IndoChina) Pte
Ltd
World Peace International
(South Asia) Pte Ltd.
"
"
"
"		 World Peace Industrial Co., Ltd.
Silicon Application Corp.
Asian Information Technology Inc.
Yosun Industrial Corp.
WPI International (Hong Kong) Limited
WPG Electronics (HK) Limited
WPG China (SZ) Inc.
WPG China Inc.
WPG SCM Limited
WPG Korea Co., Ltd.
Genuine C&C Inc.
WPG PT Electrindo Jaya
World Peace Industrial Co., Ltd.
WPG C&C (Malaysia) Sdn. Bhd
WPG C&C Computers And Peripheral
(India) Private Limited
WPG SCM Limited
WPG PT Electrindo Jaya		 Parent
company
"
"
"
Same ultimate
parent company
"
"
"
"
"
"
Investee accounted
for using equity
method
Same ultimate
parent company
"
"
"
An investment which
accounted associates
using equity method		 Sales
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"		 383,150)
($ 101,568)
(
103,154)
(
103,704)
(
3,247,866)
(
620,983)
(
488,636)
(
291,451)
(
639,742)
(
943,240)
(
115,679)
(
115,156)
(
200,434)
(
161,230)
(
513,748)
(
2,377,126)
(
233,218)
(		 54.03)
(
14.32)
(
14.55)
(
14.62)
(
3.29)
(
0.63)
(
0.50)
(
0.30)
(
0.65)
(
0.96)
(
0.12)
(
77.07)
(
1.21)
(
0.97)
(
3.09)
(
14.29)
(
1.40)
(		 Note 5
"
"
"
Note 3
"
"
"
"
"
"
"
"
"
"
"
"		 Note 5
"
"
"
Note 3
"
"
"
"
"
"
"
"
"
"
"
"		 Note 5
"
"
"
Note 3
"
"
"
"
"
"
"
"
"
"
"
"		 49,248
$ 13,428
13,951
13,866
591,046
288,712
34,344
45,671
1,011
-
30,294
31,206
32,260
3,764
67,397
1,454,974
28,611		 48.83
13.32
13.83
13.75
2.42
1.18
0.14
0.19
0.00
0.00
0.12
86.22
0.75
0.09
1.56
33.76
0.66		 
Table 6, Page 13
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)
World Peace International
(South Asia) Pte Ltd.
WPI International (Hong Kong)
Limited
"
"
"
"
"
"
"
Longview Technology Inc.
Silicon Application Corp.
"
"
"
Pernas Electronics Co., Ltd.
"
Everwiner Enterprise Co., Ltd.
"
Asian Information Technology
Inc.
"
"		 WPG C&C (Thailand) Co., Ltd.
World Peace Industrial Co., Ltd.
World Peace International (South Asia)
Pte Ltd.
WPG China (SZ) Inc.
WPG China Inc.
WPG SCM Limited
WPG Korea Co., Ltd.
Vitec WPG Limited
Peng Yu International Limited
World Peace Industrial Co., Ltd.
Pernas Electronics Co., Ltd.
WPG Electronics (HK) Limited
WPG China (SZ) Inc.
WPG China Inc.
Silicon Application corp.
Everwiner Enterprise Co., Ltd.
Silicon Application corp.
Pernas Electronics Co., Ltd.
Frontek Technology Corporation
Apache Communication Inc.
WPG China (SZ) Inc.		 Same ultimate
parent company
"
"
"
"
"
"
An investee of the
Group which was
accounted for using
equity method
Same ultimate
parent company
"
"
"
"
"
"
"
"
"
"
"
"		 Sales
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"		 125,192)
($ 5,131,802)
(
1,115,210)
(
1,042,092)
(
921,647)
(
754,699)
(
234,091)
(
100,563)
(
147,026)
(
197,757)
(
307,226)
(
3,361,439)
(
794,000)
(
162,836)
(
451,213)
(
304,556)
(
267,788)
(
1,122,987)
(
3,223,416)
(
902,572)
(
146,772)
(		 0.75)
(
3.88)
(
0.84)
(
0.79)
(
0.70)
(
0.57)
(
0.18)
(
0.08)
(
0.11)
(
72.30)
(
0.63)
(
6.88)
(
1.63)
(
0.33)
(
12.57)
(
8.48)
(
8.45)
(
35.44)
(
11.98)
(
3.36)
(
0.55)
(		 Note 3
"
"
"
"
"
"
"
"
"
30 days after
monthly billings
90 days after
monthly billings
"
"
30 days after
monthly billings
Note 2
30 days after
monthly billings
Note 2
"
"
"		 Note 3
"
"
"
"
"
"
"
"
"
Note 4
"
"
"
"
"
"
"
Note 2
"
"		 Note 3
"
"
"
"
"
"
"
"
"
Note 4
"
"
"
"
"
"
"
Note 2
"
"		 42,989
$ 1,011,824
114,781
266,909
384,647
79,642
82,994
10,253
143,559
10
41,645
1,547,823
220,134
85,222
91,594
46,409
41,762
258,929
1,487,155
416,175
48,036		 1.00
3.38
0.38
0.89
1.29
0.27
0.28
0.03
0.48
8.85
0.27
10.06
1.43
0.55
7.64
3.87
4.93
30.58
17.83
4.99
0.58		 
Table 6, Page 14
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)
Henshen Electric Trading Co.,
Ltd.
Frontek Technology Corporation
"
"
Apache Communication Inc.
"
WPG Electronics (HK) Limited
"
"
"
WPG China (SZ) Inc.
WPG China Inc.
WPG Americas Inc.
WPG South Asia Pte. Ltd.
Yosun Industrial Corp.
"
"
"
Yosun Hong Kong Corp. Ltd.
"
"
"
Yosun Singapore Pte Ltd.
"
Sertek Incorporated
"		 Frontek Technology Corporation
Asian Information Technology Inc.
WPG Electronics (HK) Limited
WPG China Inc.
Asian Information Technology Inc.
Frontek Technology Corporation
World Peace Industrial Co., Ltd.
WPI International (Hong Kong) Limited
Silicon Application Corp.
Peng Yu International Limited
WPG China Inc.
WPG China (SZ) Inc.
World Peace Industrial Co., Ltd.
World Peace International (South Asia)
Pte Ltd.
WPG China (SZ) Inc.
WPG China Inc.
Yosun Hong Kong Corp. Ltd.
Richpower Electronic Devices Co., Ltd.
WPG China (SZ) Inc.
WPG China Inc.
Yosun Industrial Corp.
Richpower Electronic Devices Co.,
Limited
WPG SCM Limited
Yosun Hong Kong Corp. Ltd.
WPI International (Hong Kong) Limited
Yosun Industrial Corp.		 Same ultimate
parent company
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"		 Sales
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"		 301,565)
($ 2,288,795)
(
372,246)
(
133,762)
(
510,627)
(
115,066)
(
5,054,140)
(
2,815,710)
(
101,013)
(
2,642,276)
(
1,043,450)
(
347,671)
(
640,407)
(
306,317)
(
390,541)
(
402,632)
(
3,015,600)
(
213,676)
(
393,265)
(
1,721,998)
(
554,816)
(
664,727)
(
371,267)
(
187,518)
(
109,649)
(
396,817)
(		 34.89)
(
13.03)
(
2.12)
(
0.76)
(
2.99)
(
0.67)
(
31.01)
(
17.28)
(
0.62)
(
16.21)
(
14.30)
(
2.61)
(
6.39)
(
25.98)
(
1.86)
(
1.92)
(
14.36)
(
1.02)
(
1.56)
(
6.82)
(
2.20)
(
2.63)
(
8.44)
(
4.27)
(
1.10)
(
3.97)
(		 Note 2
"
"
"
"
"
Notes 3 and 5
"
"
"
Note 6
Note 3
Note 3
Notes 3 and 5
Note 6
"
Note 3
"
Note 6
"
Note 3
"
"
"
"
"		 Note 2
"
"
"
"
"
Notes 3 and 5
"
"
"
Note 6
Note 4
Note 3
Notes 3 and 5
Note 6
"
Note 3
"
Note 6
"
Note 3
"
"
"
"
"		 Note 2
"
"
"
"
"
Notes 3 and 5
"
"
"
Note 6
Note 4
Note 3
Notes 3 and 5
Note 6
"
Note 3
"
Note 6
"
Note 3
"
"
"
"
"		 11,397
$ 827,434
217,382
36,061
174,808
41,694
2,386,489
957,978
-
1,446,945
614,535
-
35,394
-
82,210
148,588
731,711
40,275
148,887
768,808
30,785
17,476
42,683
29,426
12,706
105,401		 10.07
13.55
3.56
0.59
4.04
0.96
34.26
13.75
0.00
20.77
20.98
0.00
2.80
0.00
1.96
3.55
17.47
0.96
3.41
17.60
0.70
0.40
3.34
2.30
1.81
14.99		 
Table 6, Page 15
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)
Sertek Incorporated
Richpower Electronic Devices
Co., Ltd.
"
"
Richpower Electronic Devices
Co., Limited
"
"
"
Peng Yu (Shanghai) Digital
Technology Co., Ltd.
Peng Yu International Limited
"		 Yosun Hong Kong Corp. Ltd.
WPG Electronic (HK) Limited
Yosun Industrial Corp.
Yosun Hong Kong Corp. Ltd.
WPG China (SZ) Inc.
Yosun Industrial Corp.
Yosun Hong Kong Corp. Ltd.
Richpower Electronic Devices Co., Ltd.
Peng Yu International Limited
WPG Electronics (HK) Limited
WPG C&C Shanghai Co., Ltd.		 Same ultimate
parent company
"
"
"
"
"
"
"
"
"
"		 Sales
"
"
"
"
"
"
"
"
"
"		 469,302)
($ 890,740)
(
532,101)
(
121,199)
(
608,938)
(
4,423,887)
(
2,605,148)
(
235,333)
(
146,205)
(
510,132)
(
1,331,192)
(		 4.69)
(
12.86)
(
7.68)
(
1.75)
(
4.67)
(
33.91)
(
19.97)
(
1.80)
(
98.35)
(
11.99)
(
31.29)
(		 Note 3
Note 6
Note 3
"
Note 6
Note 3
"
"
"
"
"		 Note 3
Note 6
Note 3
"
Note 6
Note 3
"
"
Note 4
Note 3
"		 Note 3
Note 6
Note 3
"
Note 6
Note 3
"
"
Note 4
Note 3
"		 117,036
$ 437,535
151,061
37,923
23,235
451,352
473,119
54,857
40,284
-
311,225		 16.65
16.92
5.84
1.47
0.84
16.39
17.18
1.99
99.97
0.00
45.57

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 16

Table 7

WPG Holdings Limited and Subsidiaries

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

Nine months ended September 30, 2020

Expressed in thousands of NTD (Except as otherwise indicated)

Overdue receivables

Creditor Counterparty Relationship
withthe counterparty		 Balance as at
September 30, 2020
(Note1)		 Turnover rate
(Note2)		 Amount Actiontaken Amount collected
subsequent to
the balance
sheet date (Note 3)		 Allowance for
doubtfulaccounts
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
WPI International (Hong Kong) Limited
Silicon Application Corp.
Silicon Application Corp.
Everwiner Enterprise Co., Ltd.
Asian Information Technology Inc.
Asian Information Technology Inc.
Frontek Technology Corporation
Frontek Technology Corporation
Apache Communication Inc.
WPG Electronics (HK) Limited
WPG Electronics (HK) Limited
WPG Electronics (HK) Limited
WPG China (SZ) Inc.
Yosun Industrial Corp.
Yosun Industrial Corp.
Yosun Hong Kong Corp. Ltd.
Yosun Hong Kong Corp. Ltd.		 WPI International (Hong Kong) Limited
WPG Electronics (HK) Limited
WPG SCM Limited
World Peace Industrial Co., Ltd.
World Peace International (South Asia)
Pte Ltd.
WPG China (SZ) Inc.
WPG China Inc.
Peng Yu International Limited
WPG Electronics (HK) Limited
WPG China (SZ) Inc.
Pernas Electronics Co., Ltd.
Frontek Technology Corporation
Apache Communication Inc.
Asian Information Technology Inc.
WPG Electronics (HK) Limited
Asian Information Technology Inc.
World Peace Industrial Co., Ltd.
WPI International (Hong Kong) Limited
Peng Yu International Limited
WPG China Inc.
WPG China Inc.
Yosun Hong Kong Corp. Ltd.
WPG China (SZ) Inc.
WPG China Inc.		 Same ultimate parent
company
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"		 591,046
$ 288,712
1,454,974
1,011,824
114,781
266,909
384,647
143,559
1,547,823
220,134
258,929
1,487,155
416,175
827,434
217,382
174,808
2,386,489
957,978
1,446,945
614,535
148,588
731,711
148,887
768,808		 8.65
3.39
3.22
10.01
14.01
5.61
3.81
2.73
3.36
5.66
5.76
3.98
4.84
5.95
2.68
7.16
5.64
7.31
4.81
4.53
4.05
8.79
4.15
4.52		 -
$ 2,372
-
-
-
-
-
-
920
4,211
-
-
-
-
-
-
-
-
-
-
-
-
2,247
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 591,046
$ 91,871
501,012
1,011,824
114,781
104,601
126,688
123,196
398,043
78,476
138,711
108,174
93,593
499,460
44,280
91,111
538,329
126,375
337,978
226,377
35,768
731,711
93,996
268,427		 -
$ -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 
Table 7, Page 17

Overdue receivables

Creditor Counterparty Relationship
withthe counterparty		 Balance as at
September 30, 2020
(Note1)		 Turnover rate
(Note2)		 Amount Actiontaken Amount collected
subsequent to
the balance
sheet date (Note 3)		 Allowance for
doubtfulaccounts
Sertek Incorporated
Sertek Incorporated
Richpower Electronic Devices Co., Ltd.
Richpower Electronic Devices Co., Ltd.
Richpower Electronic Devices Co.,
Limited
Richpower Electronic Devices Co.,
Limited
Peng Yu International 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.
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 Electronic Co., Ltd.
Silicon Application Corp.
Silicon Application (BVI) Corp.
Silicon Application (BVI) Corp.
Silicon Application Company Limited
Silicon Application Company Limited
Silicon Application Company Limited
Everwiner Enterprise Co., Ltd.		 Yosun Industrial Corp.
Yosun Hong Kong Corp. Ltd.
WPG Electronics (HK) Limited
Yosun Industrial Corp.
Yosun Industrial Corp.
Yosun Hong Kong Corp. Ltd.
WPG C&C Shanghai Co., Ltd.
WPI International (Hong Kong) Limited
World Peace International (South Asia)
Pte Ltd.
WPG SCM Limited
WPG South Asia Pte. Ltd.
World Peace International (South Asia)
Pte Ltd.
WPG Electronics (HK) Limited
WPG Korea Co., Ltd.
Peng Yu International Limited
WPI International (Hong Kong) Limited
WPI International (Hong Kong) Limited
WPI International (Hong Kong) Limited
WPG Electronics (HK) Limited
Silicon Application Corp.
Peng Yu International Limited
Silicon Application Corp.
WPG Electronics (HK) Limited
Yosun Hong Kong Corp. Ltd.
Pernas Electronics Co., Ltd.		 Same ultimate parent
company
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"		 105,401
$ 117,036
437,535
151,061
451,352
473,119
311,225
2,051,012
116,544
448,217
146,972
123,758
711,354
233,158
255,601
236,836
412,913
702,415
2,057,221
1,170,742
119,002
679,301
471,070
592,648
201,419		 7.85
9.40
3.18
9.18
26.14
12.53
8.31
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		 -
$ -
3,415
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 105,401
$ 117,036
142,872
151,061
451,352
473,119
238,134
1,947,776
144
130,738
146,972
73
2
18
-
236,836
186
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-		 
Table 7, Page 18

Overdue receivables

Creditor Counterparty Relationship
withthe counterparty		 Balance as at
September 30, 2020
(Note1)		 Turnover rate
(Note2)		 Amount Actiontaken Amount collected
subsequent to
the balance
sheet date (Note 3)		 Allowance for
doubtfulaccounts
WPG South Asia Pte. Ltd.
WPG SCM Limited
WPG SCM Limited
Yosun Industrial Corp.
Yosun Hong Kong Corp. Ltd.
Yosun Hong Kong Corp. Ltd.
Yosun Shanghai Corp. Ltd.
Yosun South China Corp. Ltd.
Richpower Electronic Devices Co.,
Limited
Richpower Electronic Devices Pte Ltd
Genuine C&C Holding Inc. (Seychelles)
Peng Yu (Shanghai) Digital Technology
Co., Ltd.		 WPG Korea Co., Ltd.
WPG Electronics (HK) Limited
WPG Americas Inc.
Richpower Electronic Devices Co.,
Limited
WPG Electronics (HK) Limited
WPG China Inc.
WPG China (SZ) Inc.
WPG China (SZ) Inc.
Silicon Application Corp.
Yosun Singapore Pte Ltd.
Peng Yu International Limited
WPG C&C Shanghai Co., Ltd.		 Same ultimate parent
company
"
"
"
"
"
"
"
"
"
"
"		 262,537
$ 291,172
583,079
588,859
295,255
2,908,120
315,007
109,564
592,598
214,149
119,069
135,448		 0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00		 -
$ -
-
-
-
-
-
-
-
-
-
-		 -
-
-
-
-
-
-
-
-
-
-
-		 -
$ -
-
3,946
-
-
-
-
-
264
-
-		 -
-
-
-
-
-
-
-
-
-
-
-

Note 1: Balance as at September 30, 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 November 10, 2020. 

Table 7, Page 19

Significant inter-company transactions during the reporting period Nine months ended September 30, 2020

Table 8

WPG Holdings Limited and Subsidiaries

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
0
0
0
1
1
1
1
1
1
1
2
2
2
2
2
3
3
3
3
3
3		 WPG Holdings Limited
WPG Holdings Limited
WPG Holdings Limited
WPG Holdings Limited
World Peace Industrial Co., Ltd.
World Peace Industrial Co., Ltd.
World Peace Industrial Co., Ltd.
World Peace Industrial Co., Ltd.
World Peace Industrial Co., Ltd.
World Peace Industrial Co., Ltd.
World Peace Industrial Co., Ltd.
World Peace International (South Asia) Pte
Ltd.
World Peace International (South Asia) Pte
Ltd.
World Peace International (South Asia) Pte
Ltd.
World Peace International (South Asia) Pte
Ltd.
World Peace International (South Asia) Pte
Ltd.
WPI International (Hong Kong) Limited
WPI International (Hong Kong) Limited
WPI International (Hong Kong) Limited
WPI International (Hong Kong) Limited
WPI International (Hong Kong) Limited
WPI International (Hong Kong) Limited		 World Peace Industrial Co., Ltd.
Silicon Application Corp.
Asian Information Technology Inc.
Yosun Industrial Corp.
WPI International (Hong Kong) Limited
WPG Electronics (HK) Limited
WPG China (SZ) Inc.
WPG China Inc.
WPG SCM Limited
WPG Korea Co., Ltd.
Genuine C&C Inc.
World Peace Industrial Co., Ltd.
WPG C&C (Malaysia) Sdn. Bhd
WPG C&C Computers And Peripheral
(India) Private Limited
WPG SCM Limited
WPG C&C (Thailand) Co., Ltd.
World Peace Industrial Co., Ltd.
World Peace International (South Asia) Pte
Ltd.
WPG China (SZ) Inc.
WPG China Inc.
WPG SCM Limited
WPG Korea Co., Ltd.		 1
1
1
1
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3		 Sales
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"		 383,150
$ 101,568
103,154
103,704
3,247,866
620,983
488,636
291,451
639,742
943,240
115,679
200,434
161,230
513,748
2,377,126
125,192
5,131,802
1,115,210
1,042,092
921,647
754,699
234,091		 Note 11
Note 11
Note 11
Note 11
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5		 0.08
0.02
0.02
0.02
0.72
0.14
0.11
0.06
0.14
0.21
0.03
0.04
0.04
0.11
0.53
0.03
1.14
0.25
0.23
0.20
0.17
0.05		 
Table 8, Page 20

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
5
7
7
7
7
8
8
9
9
10
10
10
11
12
12
12
13
13
15
15
15
15
16
17
18
19
21		 WPI International (Hong Kong) Limited
Longview Technology Inc.
Silicon Application corp.
Silicon Application corp.
Silicon Application corp.
Silicon Application corp.
Pernas Electronics Co., Ltd.
Pernas Electronics Co., Ltd.
Everwiner Enterprise Co., Ltd.
Everwiner Enterprise Co., Ltd.
Asian Information Technology Inc.
Asian Information Technology Inc.
Asian Information Technology Inc.
Henshen Electric Trading Co., Ltd.
Frontek Technology Corporation
Frontek Technology Corporation
Frontek Technology Corporation
Apache Communication Inc.
Apache Communication Inc.
WPG Electronics (HK) Limited
WPG Electronics (HK) Limited
WPG Electronics (HK) Limited
WPG Electronics (HK) Limited
WPG China (SZ) Inc.
WPG China Inc.
WPG Americas Inc.
WPG South Asia Pte. Ltd.
Yosun Industrial Corp.		 Peng Yu International Limited
World Peace Industrial Co., Ltd.
Pernas Electronics Co., Ltd.
WPG Electronics (HK) Limited
WPG China (SZ) Inc.
WPG China Inc.
Silicon Application corp.
Everwiner Enterprise Co., Ltd.
Silicon Application corp.
Pernas Electronics Co., Ltd.
Frontek Technology Corporation
Apache Communication Inc.
WPG China (SZ) Inc.
Frontek Technology Corporation
Asian Information Technology Inc.
WPG Electronics (HK) Limited
WPG China Inc.
Asian Information Technology Inc.
Frontek Technology Corporation
World Peace Industrial Co., Ltd.
WPI International (Hong Kong) Limited
Silicon Application Corp.
Peng Yu International Limited
WPG China Inc.
WPG China (SZ) Inc.
World Peace Industrial Co., Ltd.
World Peace International (South Asia) Pte
Ltd.
WPG China (SZ) Inc.		 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
3		 Sales
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"		 147,026
$ 197,757
307,226
3,361,439
794,000
162,836
451,213
304,556
267,788
1,122,987
3,223,416
902,572
146,772
301,565
2,288,795
372,246
133,762
510,627
115,066
5,054,140
2,815,710
101,013
2,642,276
1,043,450
347,671
640,407
306,317
390,541		 Note 5
Note 5
Notes 9 and 11
Notes 9 and 12
Notes 9 and 12
Notes 9 and 12
Notes 9 and 11
Note 4
Notes 9 and 11
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 4
Note 5
Note 5
Note 5
Note 5
Note 8
Note 5
Note 5
Note 11
Note 8		 0.03
0.04
0.07
0.75
0.18
0.04
0.10
0.07
0.06
0.25
0.71
0.20
0.03
0.07
0.51
0.08
0.03
0.11
0.03
1.12
0.62
0.02
0.59
0.23
0.08
0.14
0.07
0.09		 
Table 8, Page 21

Transaction

Number
(Note 1)		 Companyname Counterparty Relationship
(Note 2)		 General ledgeraccount Amount Transactionterms Percentage of consolidated
total operating
revenues or total assets
(Note 3)
21
21
21
22
22
22
22
23
23
24
24
24
25
25
25
26
26
26
26
40
27
27
1
1
2		 Yosun Industrial Corp.
Yosun Industrial Corp.
Yosun Industrial Corp.
Yosun Hong Kong Corp. Ltd.
Yosun Hong Kong Corp. Ltd.
Yosun Hong Kong Corp. Ltd.
Yosun Hong Kong Corp. Ltd.
Yosun Singapore Pte Ltd.
Yosun Singapore Pte Ltd.
Sertek Incorporated
Sertek Incorporated
Sertek Incorporated
Richpower Electronic Devices Co., Ltd.
Richpower Electronic Devices Co., Ltd.
Richpower Electronic Devices Co., Ltd.
Richpower Electronic Devices Co., Limited
Richpower Electronic Devices Co., Limited
Richpower Electronic Devices Co., Limited
Richpower Electronic Devices Co., Limited
Peng Yu (Shanghai) Digital Technology
Co., Ltd.
Peng Yu International Limited
Peng Yu International Limited
World Peace Industrial Co., Ltd.
World Peace Industrial Co., Ltd.
World Peace International (South Asia) Pte
Ltd.		 WPG China Inc.
Yosun Hong Kong Corp. Ltd.
Richpower Electronic Devices Co., Ltd.
WPG China (SZ) Inc.
WPG China Inc.
Yosun Industrial Corp.
Richpower Electronic Devices Co., Limited
WPG SCM Limited
Yosun Hong Kong Corp. Ltd.
WPI International (Hong Kong) Limited
Yosun Industrial Corp.
Yosun Hong Kong Corp. Ltd.
WPG Electronics (HK) Limited
Yosun Industrial Corp.
Yosun Hong Kong Corp. Ltd.
WPG China (SZ) Inc.
Yosun Industrial Corp.
Yosun Hong Kong Corp. Ltd.
Richpower Electronic Devices Co., Ltd.
Peng Yu International Limited
WPG Electronics (HK) Limited
WPG C&C Shanghai Co., Ltd.
WPI International (Hong Kong) Limited
WPG Electronics (HK) Limited
WPG SCM 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		 Sales
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
Accounts receivable
"
"		 402,632
$ 3,015,600
213,676
393,265
1,721,998
554,816
664,727
371,267
187,518
109,649
396,817
469,302
890,740
532,101
121,199
608,938
4,423,887
2,605,148
235,333
146,205
510,132
1,331,192
591,046
288,712
1,454,974		 Note 8
Note 5
Note 5
Note 8
Note 8
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5
Note 8
Note 5
Note 5
Note 8
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5
Note 5		 0.09
0.67
0.05
0.09
0.38
0.12
0.15
0.08
0.04
0.02
0.09
0.10
0.20
0.12
0.03
0.14
0.98
0.58
0.05
0.03
0.11
0.30
0.25
0.12
0.62		 
Table 8, Page 22

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
3
3
3
7
7
9
10
10
12
12
13
15
15
15
16
21
21
22
22
24
24
25
25
26
26
27		 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.
Frontek Technology Corporation
Frontek Technology Corporation
Apache Communication Inc.
WPG Electronics (HK) Limited
WPG Electronics (HK) Limited
WPG Electronics (HK) Limited
WPG China (SZ) Inc.
Yosun Industrial Corp.
Yosun Industrial Corp.
Yosun Hong Kong Corp. Ltd.
Yosun Hong Kong Corp. Ltd.
Sertek Incorporated
Sertek Incorporated
Richpower Electronic Devices Co., Ltd.
Richpower Electronic Devices Co., Ltd.
Richpower Electronic Devices Co., Limited
Richpower Electronic Devices Co., Limited
Peng Yu International Limited		 World Peace Industrial Co., Ltd.
World Peace International (South Asia) Pte
Ltd.
WPG China (SZ) Inc.
WPG China Inc.
Peng Yu International Limited
WPG Electronics (HK) Limited
WPG China (SZ) Inc.
Pernas Electronics Co., Ltd.
Frontek Technology Corporation
Apache Communication Inc.
Asian Information Technology Inc.
WPG Electronics (HK) Limited
Asian Information Technology Inc.
World Peace Industrial Co., Ltd.
WPI International (Hong Kong) Limited
Peng Yu International Limited
WPG China Inc.
WPG China Inc.
Yosun Hong Kong Corp. Ltd.
WPG China (SZ) Inc.
WPG China Inc.
Yosun Industrial Corp.
Yosun Hong Kong Corp. Ltd.
WPG Electronics (HK) Limited
Yosun Industrial Corp.
Yosun Industrial Corp.
Yosun Hong Kong Corp. Ltd.
WPG C&C Shanghai Co., Ltd.		 3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3		 Accounts receivable
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"		 1,011,824
$ 114,781
266,909
384,647
143,559
1,547,823
220,134
258,929
1,487,155
416,175
827,434
217,382
174,808
2,386,489
957,978
1,446,945
614,535
148,588
731,711
148,887
768,808
105,401
117,036
437,535
151,061
451,352
473,119
311,225		 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 10
Note 10
Note 10
Note 8
Note 8
Note 5
Note 8
Note 8
Note 5
Note 5
Note 8
Note 5
Note 5
Note 5
Note 5		 0.43
0.05
0.11
0.16
0.06
0.66
0.09
0.11
0.63
0.18
0.35
0.09
0.07
1.02
0.41
0.62
0.26
0.06
0.31
0.06
0.33
0.04
0.05
0.19
0.06
0.19
0.20
0.13		 
Table 8, Page 23

Transaction

Number
(Note 1)		 Companyname Counterparty Relationship
(Note 2)		 General ledgeraccount Amount Transactionterms Percentage of consolidated
total operating
revenues or total assets
(Note 3)
1
28
2
2
3
3
3
3
29
6
32
7
33
33
34
34
34
9
19
39
39
21
22
22
35
36		 World Peace Industrial Co., Ltd.
World Peace International Pte Ltd
World Peace International (South Asia) Pte
Ltd.
World Peace International (South Asia) Pte
Ltd.
WPI International (Hong Kong) Limited
WPI International (Hong Kong) Limited
WPI International (Hong Kong) Limited
WPI International (Hong Kong) Limited
WPG C&C Limited
Long-Think International (Hong Kong)
Limited
AECO Electronics Co., Ltd.
Silicon Application corp.
Silicon Application (BVI) Corp.
Silicon Application (BVI) Corp.
Silicon Application Company Limited
Silicon Application Company Limited
Silicon Application Company Limited
Everwiner Enterprise Co., Ltd.
WPG South Asia Pte. Ltd.
WPG SCM Limited
WPG SCM Limited
Yosun Industrial Corp.
Yosun Hong Kong Corp. Ltd.
Yosun Hong Kong Corp. Ltd.
Yosun Shanghai Corp. Ltd.
Yosun South China Corp. Ltd.		 WPI International (Hong Kong) Limited
World Peace International (South Asia) Pte
Ltd.
WPG SCM Limited
WPG South Asia Pte. Ltd.
World Peace International (South Asia) Pte
Ltd.
WPG Electronics (HK) Limited
WPG Korea Co., Ltd.
Peng Yu International Limited
WPI International (Hong Kong) Limited
WPI International (Hong Kong) Limited
WPI International (Hong Kong) Limited
WPG Electronics (HK) Limited
Silicon Application corp.
Peng Yu International Limited
Silicon Application corp.
WPG Electronics (HK) Limited
Yosun Hong Kong Corp. Ltd.
Pernas Electronics Co., Ltd.
WPG Korea Co., Ltd.
WPG Electronics (HK) Limited
WPG Americas Inc.
Richpower Electronic Devices Co., Limited
WPG Electronics (HK) Limited
WPG China Inc.
WPG China (SZ) Inc.
WPG China (SZ) Inc.		 3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3
3		 Other receivables
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"
"		 2,051,012
$ 116,544
448,217
146,972
123,758
711,354
233,158
255,601
236,836
412,913
702,415
2,057,221
1,170,742
119,002
679,301
471,070
592,648
201,419
262,537
291,172
583,079
588,859
295,255
2,908,120
315,007
109,564		 Note 7
Note 7
Note 6
Note 6
Note 6
Note 7
Note 7
Note 13
Note 7
Note 7
Note 7
Note 7
Note 7
Note 7
Note 7
Note 7
Note 7
Note 7
Note 7
Note 7
Note 7
Note 7
Note 7
Note 7
Note 7
Note 7		 0.87
0.05
0.19
0.06
0.05
0.30
0.10
0.11
0.10
0.18
0.30
0.88
0.50
0.05
0.29
0.20
0.25
0.09
0.11
0.12
0.25
0.25
0.13
1.24
0.13
0.05		 
Table 8, Page 24

Transaction

Number
(Note 1)		 Companyname Counterparty Relationship
(Note 2)		 General ledgeraccount Amount Transactionterms Percentage of consolidated
total operating
revenues or total assets
(Note 3)
26
38
37
40		 Richpower Electronic Devices Co., Limited
Richpower Electronic Devices Pte Ltd
Genuine C&C Holding Inc. (Seychelles)
Peng Yu (Shanghai) Digital Technology
Co., Ltd.		 Silicon Application corp.
Yosun Singapore Pte Ltd.
Peng Yu International Limited
WPG C&C Shanghai Co., Ltd.		 3
3
3
3		 Other receivables
"
"
"		 592,598
$ 214,149
119,069
135,448		 Note 7
Note 7
Note 7
Note 7		 0.25
0.09
0.05
0.06

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: The amount receivable arose from payments to suppliers made on behalf of the associate. 
Table 8, Page 25

Table 9

WPG Holdings Limited and Subsidiaries

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

Nine months ended September 30, 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 September 30,2020 as at September 30,2020 Net profit (loss) of
the investee for the
nine months ended
September 30,2020		 Investment income
(loss) recognized by
the Company for the
nine months ended
September 30, 2020
(Note 1)		 Footnote
Balance as at
September 30,
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.
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.		 Taiwan
Taiwan
Taiwan
Taiwan
Cayman Islands
South Korea
Taiwan
Taiwan
Taiwan
Taiwan
British Virgin
Islands
British Virgin
Islands
Taiwan		 Sales of electronic
components
Sales of computer
software and
electronic
components
Sales of electronic
/electrical
components
Agent and sales of
electronic/eletrical
components
Holding company
Agent and sales of
electronic/eletrical
components
Sales of electronic
/electrical
components
Investment company
Investment company
Trading company
Holding company
Holding company
Agent and sales of
electronic/eletrical
components		 18,471,669
$ 5,717,962
4,863,464
14,735
4,583,583
169,071
12,144,406
707,968
2,102,997
8,111,638
1,132,162
2,774,146
364,290		 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		 1,592,500,000
579,000,000
530,000,000
3,920,000
150,282,520
1,087,794
362,074,400
48,139,319
210,000,000
177,110,000
34,196,393
83,179,435
33,900,000		 100.00
100.00
100.00
100.00
100.00
100.00
100.00
60.50
100.00
22.47
100.00
100.00
100.00		 24,919,498
$ 7,367,742
5,765,642
57,329
5,585,440
470,315
11,912,957
780,886
2,086,771
9,732,313
3,792,673
19,441,955
552,679		 2,492,630
$ 788,059
858,972
12,242
395,259
4,740)
(
716,906
153,648
29,660
2,556,746
132,303
1,591,884
44,912		 2,492,630
$ 788,059
858,972
12,257
395,259
4,740)
(
714,269
94,871
29,660
574,462
-
-
-		 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		 
Table 9, Page 26
Investor Investee Location Main business
activities		 Initial investment amount Initial investment amount Shares held as at September 30,2020 as at September 30,2020 Net profit (loss) of
the investee for the
nine months ended
September 30,2020		 Investment income
(loss) recognized by
the Company for the
nine months ended
September 30, 2020
(Note 1)		 Footnote
Balance as at
September 30,
2020		 Balance as at
December 31,
2019		 Number of shares Ownership
(%)		 Book value
World Peace Industrial Co., Ltd.
World Peace Industrial Co., Ltd.
Longview Technology Inc.
Longview Technology Inc.
AECO Technology Co., Ltd.
Silicon Application Corp.
Silicon Application Corp.
Silicon Application Corp.
Silicon Application Corp.
Pernas Electronics Co., Ltd.
Asian Information Technology
Inc.
Asian Information Technology
Inc.
Asian Information Technology
Inc.
Asian Information Technology
Inc.		 AECO Technology Co., Ltd.
Chainpower Technology 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.		 Taiwan
Taiwan
British Virgin
Islands
Taiwan
British Virgin
Islands
British Virgin
Islands
British Virgin
Islands
Singapore
Taiwan
Taiwan
Taiwan
Taiwan
Taiwan
British Virgin
Islands		 Agent and sales of
electronic/eletrical
components
Agent and sales of
electronic/eletrical
components
Holding company
Agent and sales of
electronic/eletrical
components
Investment company
Holding company
Holding company
Sales of computer
software, hardware
and electronic
components
Agent and sales of
electronic/eletrical
components
Agent and sales of
electronic/eletrical
components
Sales of
electronic/electrical
components
Sales of
electronic/electrical
components
Sales of
electronic/electrical
components
Investment company		 1,468,555
$ 66,261
335,328
37,302
436,280
24,015
706,402
104,510
959,504
343,959
124,521
1,515,256
480,313
155,558		 1,468,555
$ 66,261
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		 94,600,000
9,781,452
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
154,300,000
4,703,107		 100.00
39.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00
100.00		 1,610,096
$ 157,157
534,325
48,808
773,717
25,130
3,148,128
110,250
1,173,276
792,522
128,524
2,096,663
1,516,237
284,934		 37,464
$ 71,843
20,433
2,613
10,378
179
46,883
851
158,442
91,677
15,254
235,268
124,926
13,089)
(		 -
$ -
-
-
-
-
-
-
-
-
-
-
-
-		 Notes 2 and 5
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 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		 
Table 9, Page 27
Investor Investee Location Main business
activities		 Initial investment amount Initial investment amount Shares held as at September 30,2020 as at September 30,2020 Net profit (loss) of
the investee for the
nine months ended
September 30,2020		 Investment income
(loss) recognized by
the Company for the
nine months ended
September 30, 2020
(Note 1)		 Footnote
Balance as at
September 30,
2020		 Balance as at
December 31,
2019		 Number of shares Ownership
(%)		 Book value
Asian Information Technology
Inc.
Frontek Technology Corporation
Yosun Industrial Corp.
Yosun Industrial Corp.
Yosun Industrial Corp.
Yosun Industrial Corp.
Yosun Industrial Corp.
Sertek Incorporated
Richpower Electronic Devices
Co., Ltd.
Richpower Electronic Devices
Co., Ltd.
Trigold Holdings Limited
Trigold Holdings Limited
WPG Investment Co., Ltd.
WPG Investment Co., Ltd.
WPG Investment Co., Ltd.		 Adivic Technology Co., Ltd.
Frontek International Limited
Suntop Investments Limited
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		 Taiwan
British Virgin
Islands
Cayman Islands
Taiwan
Taiwan
Taiwan
Taiwan
Hong Kong
Hong Kong
Singapore
Taiwan
Hong Kong
Taiwan
Cayman Islands
Hong Kong		 Import and export
business for
electronic
components
Investment company
Investment company
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		 206,200
$ 101,862
1,812,188
1,616,722
2,092,631
11,520
19,920
83,494
284,898
1,988
1,093,697
510,981
230
73,000
13,663		 206,200
$ 101,862
1,812,188
1,616,722
2,092,631
11,520
19,920
83,494
284,898
1,988
1,093,697
510,981
230
73,000
13,663		 4,410,000
2,970,000
50,700,000
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		 25.94
100.00
100.00
100.00
100.00
20.00
24.24
100.00
100.00
100.00
100.00
100.00
0.01
16.25
19.34		 29,281
$ 122,636
5,023,867
1,741,807
2,107,408
32,636
-
77,289
2,371,476
219,416
1,111,999
651,520
236
74,268
11,604		 10,387)
($ 1,607
33,637
142,849
217,908
17,091
-
4,648
130,387
2,948
78,096
93,264
153,648
10,283)
(
1,494)
(		 -
$ -
-
-
-
-
-
-
-
-
-
-
-
-
-		 Notes 2 and 3
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 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		 
Table 9, Page 28
Investor Investee Location Main business
activities		 Initial investment amount Initial investment amount Shares held as at September 30,2020 as at September 30,2020 Net profit (loss) of
the investee for the
nine months ended
September 30,2020		 Investment income
(loss) recognized by
the Company for the
nine months ended
September 30, 2020
(Note 1)		 Footnote
Balance as at
September 30,
2020		 Balance as at
December 31,
2019		 Number of shares Ownership
(%)		 Book value
WPG Investment Co., Ltd.
WPG Investment Co., Ltd.
WPG Investment Co., Ltd.
Genuine C&C Inc.
Genuine C&C Inc.
Genuine C&C Inc.		 Pan-World Control
Technologies, Inc.
Eesource Corp.
Sunrise Technology Co., Ltd.
Hoban Inc.
Genuine C&C Holding Inc.
(Seychelles)
Sunrise Technology Co., Ltd.		 Taiwan
Taiwan
Taiwan
Taiwan
Seychelles
Taiwan		 Wholesale of
machinery
Sales of electronic
/electrical
components, office
machinery and
equipment
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		 17,800
$ 11,520
50,000
79,999
193,870
12,636		 17,800
$ 11,520
50,000
79,999
193,870
12,636		 1,565,218
1,080,000
3,279,800
8,000,000
6,500,000
1,682,151		 22.86
20.00
10.67
100.00
100.00
5.47		 -
$ 33,894
45,217
4,700
130,981
6,351)
(		 -
$ 17,091
6,971
5,573)
(
3,443
6,971		 -
$ -
-
-
-
-		 Notes 2 and 3
Notes 2 and 3
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 29

Table 10

WPG Holdings Limited and Subsidiaries

Information on investments in Mainland China

Nine months ended September 30, 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 nine months
ended September 30,2020		 Amount remitted from
Taiwan to Mainland China /
Amount remitted back to
Taiwan for the nine months
ended September 30,2020		 Accumulated
amount of
remittance from
Taiwan to
Mainland China
as of September
30,2020		 Net income of
investee for the
nine months
ended September
30,2020		 Investment income
(loss) recognized by
the Company for
the nine monhts
ended September
30, 2020
(Note 3)
Ownership held
by the
Company
(direct or
indirect)		 Accumulated
amount of
investment income
remitted back to
Taiwan as of
September 30,
2020
Footnote
Book value of
investments in
Mainland China as
of September 30,
2020(Note 6)
Remitted to
Mainland
China		 Remitted
back
to Taiwan
WPG China Inc.
WPG China (SZ) Inc.
Suzhou Xinning
Bonded Warehouse
Co., Ltd.
Gain Tune Logistics
(Shanghai) Co., Ltd.
Suzhou Xinning
Logistics Co., Ltd.
WPG C&C Shanghai
Co., Ltd.
Yosun Shanghai Corp.
Ltd.
Yosun South China
Corp. Ltd.		 Agent for selling
electronic/electrical
components
Sales of computer
software and
electronic
components
Warehousing
services
Warehousing
services / extra work
Warehousing
services
Sales of
electronic/electrical
products
Sales of electronic
components and
warehousing
services
Sales of electronic
/electrical
components		 1,615,590
$ 143,371
35,305
42,690
64,035
226,841
268,161
136,901		 1
1
1
1
1
1
1
1		 1,697,634
$ 101,771
27,305
14,421
17,889
249,304
224,070
-		 -
$ -
-
-
-
-
-
-		 -
$ -
-
-
-
-
-
-		 1,697,634
$ 101,771
27,305
14,421
17,889
249,304
224,070
-		 150,418
$ 65,016
1,953
6,705)
(
8,245
55,707
4,592
3,322		 100.00
150,418
$ 100.00
65,016
49.00
957
40.00
2,682)
(
29.40
2,424
100.00
33,708
100.00
4,592
100.00
3,322		 2,447,215
$ -
$ 790,025
-
Note 3
65,417
-
24,394
-
42,313
-
207,634
-
Note 6
360,100
-
204,409
-		 
Table 10, Page 30
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 nine months
ended September 30,2020		 Amount remitted from
Taiwan to Mainland China /
Amount remitted back to
Taiwan for the nine months
ended September 30,2020		 Accumulated
amount of
remittance from
Taiwan to
Mainland China
as of September
30,2020		 Net income of
investee for the
nine months
ended September
30,2020		 Ownership held
by the
Company
(direct or
indirect)
Investment income
(loss) recognized by
the Company for
the nine monhts
ended September
30, 2020
(Note 3)		 Book value of
investments in
Mainland China as
of September 30,
2020(Note 6)
Footnote
Accumulated
amount of
investment income
remitted back to
Taiwan as of
September 30,
2020
Remitted to
Mainland
China		 Remitted
back
toTaiwan
Qegoo Technology Co.,
Ltd.
Beauteek (Shanghai)
Global Wellness
Corporation Limited
Peng Yu (Shanghai)
Digital Technology Co.,
Ltd
Trigolduo (Shanghai)
Industrial Development
Ltd.
Trigold Tongle
(Shanghai) Industrial
Development Ltd.		 Business e-
commerce platform
Community e-
commerce trading
platform and related
services
Sales of
electronic/electrical
products
Children’s indoor
amusement park
Children’s indoor
amusement park		 53,835
$ 49,470
96,053
42,690
6,404		 1
1
1
1
1		 4,666
$ -
189,544
29,883
-		 -
$ 7,610
-
-
-		 -
$ -
-
-
-		 4,666
$ 7,610
189,544
29,883
-		 -
$ -
55,418
22,362)
(
2,726)
(		 15.00
-
$ 15.38
-
100.00
33,533
70.00
9,472)
(
70.00
1,155)
(		 -
$ -
$ -
-
183,601
-
481
-
963)
(
-
Note 7

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

  • Note 2: Except for WPG China Inc., WPG China (SZ) Inc. and WPG C&C Shanghai Co., Ltd., the investment income/loss for the nine months ended September 30, 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 3: WPG International (Hong Kong) Limited invested in WPG (SZ) Inc. in the amount of HKD 10 million, which is part of the distribution of earnings from WPG China Inc. The investment had been permitted by Investment Commission, and was excluded from the ceiling of investment amount in Mainland China.

  • Note 4: For paid-in capital, amount remitted from Taiwan to Mainland China/ amount remitted back to Taiwan for the nine months ended September 30, 2020, accumulated amount of remittance from Taiwan to Mainland China as of September 30, 2020, book value of investments in Mainland China as of September 30, 2020, accumulated amount of investment income remitted back to Taiwan as of September 30, 2020, etc., the exchange rates used were USD 1: NTD 29.1, HKD 1: NTD 3.754 and RMB 1: NTD 4.269.

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

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

  • amounting to USD 11,650 thousand. World Peace Industrial Co., Ltd. will submit an application to Investment Commission, Ministry of Economic Affairs for deducting the accumulated amount of remittance from Taiwan to Mainland China

  • when the consideration arising from transfer of equity interests is remitted back from the investment in the third area, WPI International (HK) Limited.

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

Table 10, Page 31
Companyname Accumulated amount of remittance from
Taiwan to Mainland China as of
September30,2020		 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		 1,859,020
$ 369,597
12,566
244,004
12,275
559,900		 2,028,491
$ 447,185
18,272
516,932
1,185,822
559,900		 38,237,987
$ 14,982,523
4,420,645
4,894,706
1,234,251
731,005

(1) Exchange rates as of September 30, 2020 were USD 1: NTD 29.1, HKD 1 : NTD 3.754 and RMB 1 : NTD 4.269.

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

Table 10, Page 32

WPG Holdings Limited and Subsidiaries Major shareholders information September 30, 2020

Table 11

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 33

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