WT — Interim / Quarterly Report 2021

Dec 21, 2021

WT MICROELECTRONICS CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT MARCH 31, 2021 AND 2020

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

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INDEPENDENT AUDITORS’ REVIEW REPORT

To the Board of Directors and Shareholders of WT Microelectronics Co., Ltd.

Introduction

We have reviewed the accompanying consolidated balance sheets of WT Microelectronics Co., Ltd. and subsidiaries (the “Group”) as at March 31, 2021 and 2020, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the three-month periods 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) and 6(7), the financial statements of certain insignificant consolidated subsidiaries and investments accounted for using equity method were not reviewed by independent auditors. Total assets (including investments accounted for using equity method) of these subsidiaries amounted to NT$20,287,538 thousand and NT$16,384,547 thousand, both constituting 15% of the consolidated total assets as at March 31, 2021 and 2020, respectively, total liabilities amounted to NT$5,789,204 thousand and NT$5,160,421 thousand, constituting 7% and 6% of the consolidated total liabilities as at March 31, 2021 and 2020, respectively, and total comprehensive income (including share of profit (loss) and other comprehensive income (loss) of associates and joint ventures accounted for

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資誠聯合會計師事務所 PricewaterhouseCoopers, Taiwan 11012 臺北市信義區基隆路一段 333 號 27 樓 27F, No. 333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei 11012, Taiwan T: +886 (2) 2729 6666, F:+ 886 (2) 2729 6686, www.pwc.tw

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using equity method) amounted to NT$90,389 thousand and NT$41,402 thousand, constituting 8% and 7% of the consolidated total comprehensive income for the three-month periods 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 as described in the Basis for qualified conclusion section above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at March 31, 2021 and 2020, and of its consolidated financial performance and its consolidated cash flows for the three-month periods 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.

Juanlu, Man-Yu Wu, Han-Chi

For and on behalf of PricewaterhouseCoopers, Taiwan April 27, 2021

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

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WT MICROELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 31, 2021, DECEMBER 31, 2020 AND MARCH 31, 2020

(Expressed in thousands of New Taiwan dollars)

(The consolidated balance sheets as of March 31, 2021 and 2020 are reviewed, not audited)

Assets	Notes	March31,2021	% 4 - - 43 1 37 - - 85 - 11 - 1 1 - 1 1 - 15 100	December31,2020 AMOUNT % $ 3,627,112 3 13,135 - 373,071 - 60,850,292 46 1,075,835 1 44,314,392 34 818,434 1 19,386 - 111,091,657 85 115,046 - 14,826,321 11 122,906 - 1,003,193 1 772,852 1 103,314 - 1,911,613 1 819,550 1 243,146 - 19,917,941 15 $ 131,009,598 100	March31,2020
		AMOUNT $ 5,296,595 22,065 - 58,935,581 1,185,186 49,477,206 692,929 60,226 115,669,788 148,144 14,767,274 121,401 987,476 726,117 103,111 1,907,972 784,599 224,634 19,770,728 $ 135,440,516		AMOUNT $ 3,627,112 13,135 373,071 60,850,292 1,075,835 44,314,392 818,434 19,386 111,091,657 115,046 14,826,321 122,906 1,003,193 772,852 103,314 1,911,613 819,550 243,146 19,917,941 $ 131,009,598	AMOUNT $ 11,799,875 101,185 238,588 46,695,429 1,568,108 43,566,033 412,529 26,132 104,407,879 - 204,266 151,232 990,823 827,200 103,925 1,885,976 698,476 178,689 5,040,587 $ 109,448,466	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1120 Financial assets at fair value through other comprehensive income - current 1170 Accounts receivable, net 1200 Other receivables 130X Inventories 1410 Prepayments 1470 Other current assets 11XX Total current assets Non-current assets 1510 Financial assets at fair value through profit or loss - non- current 1517 Financial assets at fair value through other comprehensive income - non-current 1550 Investments accounted for using equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1760 Investment property - net 1780 Intangible assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets	6(1) 6(2) 6(3) 6(4) 6(4)(5) 6(6) 6(1) and 8 6(2) 6(3) 6(7) 6(8) 6(9) 6(10) 6(11)					11 - - 43 1 40 - -
						95
						- - - 1 1 - 2 1 -
						5
						100

(Continued)

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WT MICROELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 31, 2021, DECEMBER 31, 2020 AND MARCH 31, 2020

(Expressed in thousands of New Taiwan dollars)

(The consolidated balance sheets as of March 31, 2021 and 2020 are reviewed, not audited)

Liabilities andEquity	Notes	March31,2021	% 22 1 - - 38 1 1 - - 1 - 64 - - 1 - - 1 65 6 1 - 15 2 - 8 3 35 - 35 100	December31,2020 March31,2020 AMOUNT % AMOUNT % $ 23,314,455 18 $ 45,995,333 42 747,643 1 1,064,091 1 - - 10,333 - 506,379 - 259,049 - 54,945,766 42 32,939,663 30 1,723,279 1 3,161,607 3 684,636 1 684,027 1 169,023 - 150,573 - - - - - 459,101 - 478,862 - 62,460 - 38,942 - 82,612,742 63 84,782,480 77 377,194 - 1,084,773 1 800,000 1 - - 604,978 1 560,331 1 330,899 - 405,250 - 167,404 - 134,625 - 2,280,475 2 2,184,979 2 84,893,217 65 86,967,459 79 7,880,260 6 5,914,369 5 1,350,000 1 - - 2,057 - 11,676 - 20,094,981 15 9,562,753 9 2,280,822 2 2,280,822 2 791,142 1 791,142 1 8,070,791 6 4,837,262 5 5,607,964 4 ( 917,836 ) ( 1) 46,078,017 35 22,480,188 21 38,364 - 819 - 46,116,381 35 22,481,007 21 $ 131,009,598 100 $ 109,448,466 100
		AMOUNT $ 30,053,513 1,207,534 7,559 494,136 51,017,497 1,417,231 943,311 164,198 400,000 517,769 63,067 86,285,815 376,859 400,000 656,247 294,189 167,124 1,894,419 88,180,234 7,912,237 1,350,000 532 20,185,725 2,280,822 791,142 10,341,980 4,372,724 47,235,162 25,120 47,260,282 $ 135,440,516		AMOUNT $ 23,314,455 747,643 - 506,379 54,945,766 1,723,279 684,636 169,023 - 459,101 62,460 82,612,742 377,194 800,000 604,978 330,899 167,404 2,280,475 84,893,217 7,880,260 1,350,000 2,057 20,094,981 2,280,822 791,142 8,070,791 5,607,964 46,078,017 38,364 46,116,381 $ 131,009,598
Current liabilities 2100 Short-term borrowings 2110 Short-term notes and bills payable 2120 Financial liabilities at fair value through profit or loss - current 2130 Contract liabilities - current 2170 Accounts payable 2200 Other payables 2230 Current income tax liabilities 2280 Lease liabilities - current 2320 Long-term liabilities, current portion 2365 Refund liabilities - current 2399 Other current liabilities 21XX Total current liabilities Non-current liabilities 2530 Bonds payable 2540 Long-term loans 2570 Deferred income tax liabilities 2580 Lease liabilities - non-current 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity attributable to owners of parent Share capital 3110 Common stock 3120 Preference share 3130 Certificates of entitlement to new shares from convertible bonds Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 31XX Equity attributable to owners of the parent 36XX Non-controlling interest 3XXX Total equity Commitments and contingent liabilities Significant subsequent events 3X2X Total liabilities and equity	6(12) 6(13) 6(2) 6(24) 6(14) 6(16) 6(24) 6(15) 6(16) 6(19) 6(20) 6(21) 6(22) 6(23) 9 11

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

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WT MICROELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except for earnings per share) (Reviewed, not audited)

Items

Three months ended March 31 2021 2020 Notes AMOUNT % AMOUNT % 6(24) $ 97,646,378 100 $ 77,475,659 100 6(6) ( 94,180,873) ( 96 )( 74,996,161) ( 97) 3,465,505 4 2,479,498 3 6(29) ( 1,026,587) ( 1 ) ( 946,176) ( 1 ) ( 280,561) ( 1 ) ( 253,698) ( 1 ) ( 140,067) - ( 99,885) - 12(2) ( 2,936) -( 25,217) - ( 1,450,151) ( 2 )( 1,324,976) ( 2) 2,015,354 2 1,154,522 1 6(25) 1,390 - 3,699 - 6(26) 21,315 - 7,146 - 6(27) 10,784 - 29,201 - 6(28) ( 149,379) - ( 403,447) - 6(7) ( 1,303) -( 5,441) - ( 117,193) -( 368,842) - 1,898,161 2 785,680 1 6(31) ( 402,507) ( 1 )( 169,573) - $ 1,495,654 1 $ 616,107 1

4000 Operating revenue 5000 Operating costs 5900 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Impairment loss determined in accordance with IFRS 9 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of loss of associates and joint ventures accounted for using equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the period

(Continued)

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WT MICROELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except for earnings per share) (Reviewed, not audited)

Items	Three 2021 Notes AMOUNT 6(22)(23) ( $ 353,750) ( 353,750) 6(22)(23) ( 8,249) 6(7) ( 286) ( 8,535) ( $ 362,285) $ 1,133,369 $ 1,510,027 ( 14,373) $ 1,495,654 $ 1,146,638 ( 13,269) $ 1,133,369 6(32) $ $	Three	months ended March 31	months ended March 31	% - - - - - - 1 1 - 1 1 - 1 1.04 0.99
		2021	2020 % AMOUNT -($ 110,424) -( 110,424) - 99,621 -( 915) - 98,706 -($ 11,718) 1 $ 604,389 1 $ 616,034 - 73 1 $ 616,107 1 $ 604,312 - 77 1 $ 604,389 1.92 $ 1.88 $	2020
Other comprehensive income (loss) Components of other comprehensive income (loss) that will not be reclassified to profit or loss 8316 Unrealised loss on valuation of equity investment instruments measured at fair value through other comprehensive income 8310 Other comprehensive loss that will not be reclassified to profit or loss Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Financial statements translation differences of foreign operations 8370 Share of other comprehensive loss of associates and joint ventures accounted for using equity method 8360 Other comprehensive (loss) income that will be reclassified to profit or loss 8300 Total other comprehensive loss for the period 8500 Total comprehensive income for the period Profit attributable to: 8610 Owners of the parent 8620 Non-controlling interest Comprehensive income attributable to: 8710 Owners of the parent 8720 Non-controlling interest Earnings per share (in dollars) 9750 Basic earnings per share 9850 Diluted earnings per share
		$		$

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

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WT MICROELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

2020 Balance at January 1, 2020 Consolidated net income Other comprehensive income (loss) Total comprehensive income (loss) Appropriations of 2019 earnings: Legal reserve Special reserve Cash dividends Conversion of convertible bonds Disposal of financial assets at fair value through other comprehensive income Balance at March 31, 2020 2021 Balance at January 1, 2021 Consolidated net income Other comprehensive income (loss) Total comprehensive income (loss) Conversion of convertible bonds Disposal of financial assets at fair value through other comprehensive income Issuance of employee restricted shares Compensation cost of share-based payments Balance at March 31, 2021	Notes								Equity	a	ttributable to owners	o	f theparent								Non- controlling interest		Total equity
					Share Capital				Capital Surplus				Retained Earnings				Other equityinterest		Total
			Share capital - common stock		Preference share		Certificates of bond-to-stock conversion				Legal reserve		Special reserve		Unappropriated retained earnings
	6(22) 6(21) 6(19)(20) 6(22) 6(22) 6(19)(20) 6(22) 6(19) 6(18)		$ 5,903,358 - - - - - - 11,011 - $ 5,914,369 $ 7,880,260 - - - 2,057 - 29,920 - $ 7,912,237		$ - - - - - - - - - $ - $ 1,350,000 - - - - - - - $ 1,350,000		$ 11,011 - - - - - - 665 - $ 11,676 $ 2,057 - - - ( 1,525 ) - - - $ 532		$ 9,531,836 - - - - - - 30,917 - $ 9,562,753 $ 20,094,981 - - - 941 - 88,513 1,290 $ 20,185,725		$ 2,019,788 - - - 261,034 - - - - $ 2,280,822 $ 2,280,822 - - - - - - - $ 2,280,822		$ 143,568 - - - - 647,574 - - - $ 791,142 $ 791,142 - - - - - - - $ 791,142		$ 6,659,975 616,034 - 616,034 ( 261,034 ) ( 647,574 ) ( 1,645,111 ) - 114,972 $ 4,837,262 $ 8,070,791 1,510,027 - 1,510,027 - 761,162 - - $ 10,341,980		($ 791,142 ) - ( 11,722 ) ( 11,722 ) - - - - ( 114,972 ) ($ 917,836 ) $ 5,607,964 - ( 363,389 ) ( 363,389 ) - ( 761,162 ) ( 118,433 ) 7,744 $ 4,372,724		$ 23,478,394 616,034 ( 11,722 ) 604,312 - - ( 1,645,111 ) 42,593 - $ 22,480,188 $ 46,078,017 1,510,027 ( 363,389 ) 1,146,638 1,473 - - 9,034 $ 47,235,162		$ 742 73 4 77 - - - - - $ 819 $ 38,364 ( 14,373 ) 1,104 ( 13,269 ) - 25 - - $ 25,120		$ 23,479,136 616,107 ( 11,718 ) 604,389 - - ( 1,645,111 ) 42,593 - $ 22,481,007 $ 46,116,381 1,495,654 ( 362,285 ) 1,133,369 1,473 25 - 9,034 $ 47,260,282

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

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WT MICROELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Depreciation Amortisation Impairment loss determined in accordance with IFRS 9 Net income on financial assets and liabilities at fair value through profit or loss Share-based payments Share of loss of associates and joint ventures accounted for using equity method Loss on disposal of property, plant and equipment, net Interest expense Interest income Changes in operating assets and liabilities Changes in operating assets Accounts receivable Other receivables Inventories Prepayments Other current assets Changes in operating liabilities Financial assets and liabilities at fair value through profit or loss Contract liabilities Accounts payable Other payables Other current liabilities (including refund liabilities) Cash outflow generated from operations Interest received Interest paid Income taxes paid Net cash flows used in operating activities

Notes 2021 2020 $ 1,898,161 $ 785,680 6(29) 87,759 74,893 6(29) 4,360 2,785 12(2) 2,936 25,217 6(27) ( 48,851 ) ( 121,249 ) 6(18) 9,034 - 6(7) 1,303 5,441 316 19 6(28) 94,351 225,236 6(25) ( 1,390 ) ( 3,699 ) 1,902,386 ( 2,340,652 ) ( 107,045 ) 189,773 ( 5,109,922 ) 1,532,433 121,513 ( 13,470 ) ( 25,724 ) - 44,414 54,279 ( 11,745 ) 63,235 ( 4,018,261 ) ( 11,832,643 ) ( 317,298 ) ( 322,442 ) 58,325 ( 78,864 ) ( 5,415,378 ) ( 11,754,028 ) 1,390 3,699 ( 87,762 ) ( 193,915 ) ( 44,740 ) ( 19,758 ) ( 5,546,490 ) ( 11,964,002 )

(Continued)

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WT MICROELECTRONICS CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

(Reviewed, not audited)

CASH FLOWS FROM INVESTING ACTIVITIES Increase in other receivables - related parties Acquisition of financial assets at fair value through profit or loss Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income (Increase) decrease in other financial assets Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Decrease in other non-current assets Net cash flows from investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Increase in short-term notes and bills payable Payments of long-term loans Decrease in other non-current liabilities Payment of lease liabilities Net cash flows from financing activities Effect of exchange rate changes Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period

Notes 2021 2020 $ - ($ 21,074 ) ( 30,000 ) ( 50,000 ) ( 796,302 ) - 6(3) 865,461 119,434 ( 15,037 ) 16,000 6(34) ( 32,943 ) ( 15,294 ) 65 31 6(11) ( 430 ) - 23,822 7,352 14,636 56,449 6(35) 6,751,468 20,008,698 6(35) 458,273 597,827 6(35) - ( 120,424 ) ( 416 ) ( 4,518 ) 6(35) ( 45,446 ) ( 42,076 ) 7,163,879 20,439,507 37,458 161,290 1,669,483 8,693,244 3,627,112 3,106,631 $ 5,296,595 $ 11,799,875

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

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WT MICROELECTRONICS CO., LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS THREE-MONTH PERIODS ENDED MARCH 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(Reviewed, not audited)

1. HISTORY AND ORGANISATION

WT Microelectronics Co., Ltd. (the "Company") was incorporated as a company limited by shares under the provisions of the Company Act of the Republic of China (R.O.C.). The Company and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in the development and sales of electronic and communication components.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were reported to the Board of Directors on April 27, 2021.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)

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

New standards, interpretations and amendments endorsed by the FSC follows:	effective from 2021 are as
New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 4, ‘Extension of the temporary exemption from applying IFRS 9’ Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘Interest Rate Benchmark Reform— Phase 2’	January 1, 2021 January 1, 2021

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

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

the Group

None.

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

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

Effective date by International Accounting New Standards, Interpretations and Amendments Standards Board Amendments to IFRS 3, ‘Reference to the conceptual framework’ January 1, 2022

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Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
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New Standards,Interpretations andAmendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	International Accounting
	Standards Board
Amendment to IFRS 16,‘Covid-19-related rent concessions beyond 30	April 1, 2021
June 2021’
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IAS 1, ‘Classification of liabilities as current or non-	January 1, 2023
current’
Amendments to IAS 1, ‘Disclosure of accounting policies’	January 1, 2023
Amendments to IAS 8, ‘Definition of accounting estimates’	January 1, 2023
Amendments to IAS 16, ‘Property, plant and equipment: proceeds	January 1, 2022
before intended use’
Amendments to IAS 37, ‘Onerous contracts—cost of fulfilling a	January 1, 2022
contract’
Annual improvements to IFRS Standards 2018–2020	January 1, 2022

The above standards and interpretations have no significant impact to the Group’s financial condition

and financial performance based on the Group’s assessment.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the “ Regulations Governing the Preparation of Financial Reports by Securities Issuers”, and the International Accounting Standards 34, “Interim financial reporting” as endorsed by the FSC.

(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.

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

• B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain

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

(3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:

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

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

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

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

• (e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

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B. Subsidiaries included in the consolidated financial statements:

Name of Investor	Name ofSubsidiary Wintech Microelectronics Holding Limited Morrihan International Corp. BSI Semiconductor Pte. Ltd. Nuvision Technology Inc. Milestone Investment Co., Ltd. SinYie Investment Co., Ltd. AboveE Technology Inc. Techmosa International Inc. MSD Holdings Pte. Ltd. Maxtek Technology Co., Ltd. Analog World Co., Ltd. WT Microelectronics (Shanghai) Co., Ltd. Promising Investment Limited Wintech Microelectronics Ltd. Wintech Microelectronics Limited WT Technology Pte. Ltd.	Main Business Activities Investment Company Trading Company Trading Company Trading Company Investment Company Investment Company Software Services Trading Company Trading Company Trading Company Trading Company Trading Company Investment Company Trading Company Investment Company Trading Company	March December March 31,2021 31,2020 31,2020 99.65 99.65 99.65 100 100 100 100 100 100 99.91 99.91 99.91 100 100 100 100 100 100 - - 100 100 100 100 100 100 100 100 100 100 100 100 - 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Ownership (%)	Note
			March December 31,2021 31,2020 99.65 99.65 100 100 100 100 99.91 99.91 100 100 100 100 - - 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100
WT Microelectronics Co., Ltd. WT Microelectronics Co., Ltd. WT Microelectronics Co., Ltd. WT Microelectronics Co., Ltd. WT Microelectronics Co., Ltd. WT Microelectronics Co., Ltd. WT Microelectronics Co., Ltd. WT Microelectronics Co., Ltd. WT Microelectronics Co., Ltd. WT Microelectronics Co., Ltd. WT Microelectronics Co., Ltd. Wintech Microelectronics Holding Limited Wintech Microelectronics Holding Limited Wintech Microelectronics Holding Limited Wintech Microelectronics Holding Limited Wintech Microelectronics Holding Limited				(d) (c)

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Main Ownership (%)
Business March December March
Name of Investor Name of Subsidiary Activities 31, 2021 31, 2020 31, 2020 Note
----- End of picture text -----

Name of Investor	Name ofSubsidiary	Main Business Activities	March 31,2021 O	December 31, 2020 wnership (%	March 31,2020 )	Note
Wintech	Wintech Investment Co.,	Investment	100	100	100
Microelectronics	Ltd.	Company
Holding Limited
Wintech	Anius Enterprise Co., Ltd.	Trading	100	100	100
Microelectronics		Company
Holding Limited
Wintech	Mega Source Co., Ltd.	Trading	100	100	100
Microelectronics		Company
Holding Limited
Wintech	Supreme Mega Ltd.	Investment	-	-	47.98	(b)
Microelectronics		Company
Holding Limited
Wintech	Brillnics Inc.	Investment	54.15	54.15	-	(b)
Microelectronics		Company
Holding Limited
BSI Semiconductor	Wonchang	Trading	100	100	100
Pte. Ltd.	Semiconductor Co., Ltd.	Company
BSI Semiconductor	WT Technology Korea	Trading	4.53	4.53	4.53
Pte. Ltd.	Co., Ltd.	Company
Morrihan International	Hotech Electronics Corp.	Trading	-	100	100	(e)
Corp.		Company
Morrihan International	Asia Latest Technology	Investment	100	100	100
Corp.	Limited	Company
Promising Investment	WT Technology (H.K.)	Trading	100	100	100
Limited	Limited	Company
Promising Investment	WT Solomon QCE Ltd.	Trading	100	100	100
Limited		Company
Promising Investment	WT Microelectronics	Trading	100	100	100
Limited	(Hong Kong) Limited	Company
Promising Investment	Nino Capital Co., Ltd.	Investment	100	100	100
Limited		Company
Promising Investment	Rich Web Ltd.	Investment	100	100	100
Limited		Company
Wintech Investment	WT Microelectronics	Trading	100	100	100
Co., Ltd.	Singapore Pte. Ltd.	Company
Wintech Investment	WT Microelectronics	Trading	100	100	100
Co., Ltd.	(Malaysia) Sdn. Bhd.	Company
Wintech Investment	WT Technology Korea	Trading	95.47	95.47	95.47
Co., Ltd.	Co., Ltd.	Company

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Main Ownership (%)
Business March December March
Name of Investor Name of Subsidiary Activities 31, 2021 31, 2020 31, 2020 Note
----- End of picture text -----

Name of Investor	Name ofSubsidiary	Main Business Activities	March 31,2021 O	December 31, 2020 wnership (%	March 31,2020 )	Note
Nino Capital Co., Ltd.	Shanghai WT	Trading	100	100	100
	Microelectronics Co.,	Company
	Ltd.
Rich Web Ltd.	WT Microelectronics	Trading	100	100	100
	(Shenzhen) Co., Ltd.	Company
WT Microelectronics	WT Microelectronics	Trading	100	100	100
Singapore Pte. Ltd.	(Thailand) Co., Limited.	Company
WT Microelectronics	WT Microelectronics	Trading	100	100	100
Singapore Pte. Ltd.	India Private Limited	Company
SinYie Investment	Wintech Microelectronics	Investment	0.35	0.35	0.35
Co., Ltd.	Holding Limited	Company
Asia Latest	Morrihan International	Trading	100	100	100
Technology Limited	Trading (Shanghai) Co.,	Company
	Ltd.
Techmosa	Techmosa International	Investment	100	100	100
International Inc.	Holding Ltd.	Company
Techmosa	Morrihan Singapore Pte.	Trading	100	100	100
International Inc.	Ltd.	Company
Maxtek Technology	HongTech Electronics	Trading	100	100	100
Co., Ltd.	Co., Ltd.	Company
Maxtek Technology	Lacewood International	Trading	100	100	100
Co., Ltd.	Corp.	Company
Maxtek Technology	Best Winner International	Investment	100	100	100
Co., Ltd.	Development Ltd.	Company
Best Winner	Maxtek International	Trading	100	100	100
International	(HK) Limited.	Company
Supreme Mega Ltd.	Brillnics Inc.	Investment	-	-	93.72	(b)
		Company
Brillnics Inc.	Brillnics (HK) Limited	Selling and	100	100	100	(b)
		Technology
		Servicing
Brillnics Inc.	Brillnics Singapore	Trading	100	100	100	(b)
	Pte.Ltd.	Company
Brillnics (HK) Limited	Brillnics Japan Inc.	Research and	100	100	100	(b)
		Development
		Company

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Main Business Name of Investor Name ofSubsidiary Activities Brillnics (HK) Limited Brillnics (Taiwan) Inc. Research and Development Company	March December March 31,2021 31, 2020 31,2020 Ownership (%) 100 100 100	Note
		(b)

  - (a) The financial statements of certain consolidated insignificant subsidiaries for the three-month periods ended March 30, 2021 and 2020 were not reviewed by independent auditors. The total assets of these unreviewed subsidiaries as of March 31, 2021 and 2020 were $20,166,137 and $16,233,315, both constituting 15% of consolidated total assets, respectively, and the total liabilities were $5,789,204 and $5,160,421, constituting 7% and 6% of the consolidated total liabilities, respectively. The total comprehensive income was $91,978 and $47,758, both constituting 8% of the consolidated total comprehensive income for the three-month periods ended March 31, 2021 and 2020, respectively.

  - (b) Wintech Microelectronics Holding Limited indirectly invested in Brillnics Inc. through Supreme Mega Ltd. In December 2020, Supreme Mega Ltd. implemented its dissolution and liquidation procedures and returned Brillnics Inc.’s shares to the original shareholders proportionately based on their owned shares of Supreme Mega Ltd. Further, Brillnics Inc. increased its capital by issuing preferred shares in December 2020 and accordingly, the shareholder ratio of Wintech Microelectronics Holding Limited in Brillnics Inc. increased to 54.15%, and capital surplus decreased by $249,010.

  - (c) In October 2020, the Company acquired all the equity interest of Analog World Co., Ltd. by cash, which then became a wholly-owned subsidiary and was included in the consolidated financial statements from the acquisition date.

  - (d) In December 2020, AboveE Technology Inc. has been dissolved and liquidated.

  - (e) In March 2021, Hotech Electronics Corp. has been dissolved and liquidated.

• 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: None.

• (4) Foreign currency translation

• A. The consolidated financial statements are presented in New Taiwan dollars, which is the Company’s functional and the Group’s presentation currency.

• B. Foreign currency transactions and balances

  • (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured.

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Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

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

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

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

• C. Translation of foreign operations

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

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

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

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

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

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

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

(5) Classification of current and non-current items

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

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

• (b) Assets held mainly for trading purposes;

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

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

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

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

• (b) Liabilities arising mainly from trading activities;

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

• (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

(6) Cash equivalents

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

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

• A. These are financial assets that are not measured at amortised cost or at fair value through other comprehensive income and are held for trading if acquired principally for the purpose of repurchasing in the short term. Derivatives are also categorised as financial labilities held for trading unless they are designated as hedges.

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

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

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

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

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

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

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

(9) Accounts and notes receivable

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

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

• C. The Group’s operating pattern of accounts receivable that are expected to be factored is for the purpose of receiving contract cash flow and selling, and the accounts receivable are subsequently measured at fair value, with any changes in fair value recognised in other comprehensive income.

(10) Impairment of financial assets

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

(11) Derecognition of financial assets

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

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

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

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

• (12) Leasing arrangements (lessor) operating leases

• Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

• (13) Inventories

• A. The cost of inventories includes the purchase price, import duties and other costs directly attributable to the acquisition of goods. The discount, allowance and others alike should be deducted from the cost.

• B. Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the applicable variable selling expenses.

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

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

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

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

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

• E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’s ownership percentage of the

~21~

associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for using equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Group’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• F. When the Group disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

• (15) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost.

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

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

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

Buildings 26 ~ 55 years Office equipment 2 ~ 9 years Other assets 2 ~ 12 years

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

• A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

~22~

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

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

• (b) Variable lease payments that depend on an index or a rate.

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

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

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

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

• (c) Any initial direct costs incurred by the lessee.

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

• D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognise the difference between remeasured lease liability in profit or loss.

(17) Investment property

An investment property is stated initially at its cost and measured subsequently using the cost model. Except for land, investment property is depreciated on a straight-line basis over its estimated useful life of 50 ~ 55 years.

(18) Intangible assets

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

• B. Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 3 ~ 5 years.

• C. Other intangible assets, mainly customer relationship, are recorded at cost and amortised on a straight-line basis over the estimated useful life of 5 ~ 8 years.

(19) Impairment of non-financial assets

• A. The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal

~23~

should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

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

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

• (20) Notes and accounts payable

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

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

• (21) Borrowings

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

• B. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the drawdown occurs.

(22) Convertible bonds payable

• Convertible corporate bonds issued by the Group contain conversion options (that is, the bondholders have the right to convert the bonds into the Company’s common shares by exchanging a fixed amount of cash for a fixed number of common shares). The Group classifies the bonds payable and derivative features embedded in convertible corporate bonds on initial recognition as a financial liability or an equity instrument (‘capital surplus—share options’) in accordance with the substance of the contractual arrangement and the definitions of a financial asset, a financial liability and an equity instrument. Convertible corporate bonds are accounted for as follows:

• A. The host contracts of bonds are initially recognised at fair value. Any difference between the initial recognition and the redemption value is accounted for as the premium or discount on bonds payable and subsequently is amortised in profit or loss as an adjustment to ‘finance costs’ over the period of circulation using the effective interest method.

~24~

• B. The embedded conversion options which meet the definition of an equity instrument are initially recognised in ‘capital surplus—share options’ at the residual amount of total issue price less the amount of financial assets or financial liabilities at fair value through profit or loss and bonds payable as stated above. Conversion options are not subsequently remeasured.

• C. Any transaction costs directly attributable to the issuance are allocated to each liability or equity component in proportion to the initial carrying amount of each abovementioned item.

• D. When bondholders exercise conversion options, the liability component of the bonds (including ‘bonds payable’) shall be remeasured on the conversion date. The book value of common shares issued due to the conversion shall be based on the adjusted book value of the abovementioned liability component plus the book value of capital surplus – share options.

• (23) 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 recognised as expense in that period when the employees render service.

• B. Pensions

• (a) Defined contribution plans

For defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised 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 recognised 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 highquality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability.

• ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

• iii. Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. Also, the related information is disclosed accordingly.

~25~

• C. Employees’ compensation and directors’ and supervisors’ remuneration

  • Employees’ compensation and directors’ and supervisors’ remuneration are recognised as expense and liability, 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 paid by shares, the Group calculates the number of shares based on the closing price at the previous day of the board meeting resolution.

• (24) Employee share based payment

• A. For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period, with a corresponding adjustment to equity. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and non-vesting conditions. Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions at each balance sheet date. Ultimately, the amount of compensation cost recognised is based on the number of equity instruments that eventually vest.

• B. Restricted stocks:

  • (a) Restricted stocks issued to employees are measured at the fair value of the equity instruments granted at the grant date, and are recognised as compensation cost over the vesting period.

  • (b) For restricted stocks where those stocks do not restrict distribution of dividends to employees and employees are not required to return the dividends received if they resign during the vesting period, the Group recognises the fair value of the dividends received by the employees who are expected to resign during the vesting period as compensation cost at the date of dividends declared.

  • (c) For restricted stocks where employees do not need to pay to acquire those stocks, if the employees resign during the vesting period, the restricted stocks will be redeemed and retired by the Group without further consideration and recognised as deduction of share capital and additional paid-in capital, in accordance with the terms of restricted stocks.

(25) Income tax

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

• B. The current income tax expense 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

~26~

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 recognised, 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 profit nor taxable profit (tax 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 realised or the deferred tax liability is settled.

• D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised 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 recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred 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 realise the asset and settle the liability simultaneously.

• F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from research and development expenditures to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.

• G. The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.

• H. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognises the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognised outside profit or loss is recognised in other comprehensive income or equity while the effect of the change on items recognised in profit or loss is recognised in profit or loss.

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(26) Share capital

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

(27) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are approved by the Company’s shareholders or Board of Directors. Cash dividends are recorded as liabilities.

(28) Revenue recognition

• A. Sales of goods

• (a) The Group sells electronic and communication components. Sales are recognised when the control of the products has been transferred, being when the products are delivered to the customer, and there is no unfulfilled obligation that could affect the customer acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customer, and either the customer has accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

• (b) The goods are often sold with volume discounts based on aggregate sales over a 12-month period. Revenue from these sales is recognised based on the price specified in the contract, net of the estimated sales discounts and allowances. Accumulated experience is used to estimate and provide for the sales discounts and allowances, using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. A refund liability is recognised for expected volume discounts payable to customers in relation to sales made until the end of the reporting period. The sales usually are made with a credit term of 90~120 days. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Group does not adjust the transaction price to reflect the time value of money.

• (c) A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due. The customer pays at the time specified in the payment schedule. If the payments exceed the merchandise provided, a contract liability is recognised.

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B. Services

• (a) The Group provides semiconductor development services. Revenue from providing services is recognised in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognised based on the actual service provided at the end of the reporting period in a proportion to the total services to be provided. This is determined based on the contract costs incurred for services performed to the estimated total cost for the service contract. The customer pays at the time specified in the payment schedule. If the services rendered exceed the payment, a contract asset is recognised. If the payments exceed the services rendered, a contract liability is recognised.

• (b) The Group’s estimate about revenue, costs and progress towards complete satisfaction of a performance obligation is subject to a revision whenever there is a change in circumstances. Any increase or decrease in revenue or costs due to an estimate revision is reflected in profit or loss during the period when the management become aware of the changes in circumstances.

(29) Business combinations

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

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

(30) Operating segments

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

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

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

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

• Revenue recognition on a net/gross basis

• The Group determines whether the nature of its performance obligation is to provide the specified goods or services itself (i.e. the Group is a principal) or to arrange for the other party to provide those goods or services (i.e. the Group is an agent) based on the transaction model and its economic substance. The Group is a principal if it controls a promised good or service before it transfers the good or service to a customer. The Group recognises 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 recognises 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 goods or services before it is provided to a customer include the following:

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

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

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

• (2) Critical accounting estimates and assumptions

• The Group makes estimates and assumptions based on the expectation of future events that are believed to be reasonable under the circumstances at the end of the reporting period. The resulting accounting estimates might be different from the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below:

• A. Impairment assessment of goodwill

  • The impairment assessment of goodwill relies on the Group’s subjective judgement, including identifying cash-generating units, allocating assets and liabilities as well as goodwill to related cash-generating units, and determining the recoverable amounts of related cash-generating units. Please refer to Note 6(11) for the information of goodwill impairment.

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B. Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the estimated selling price in the ordinary course of business within the specified period before the balance sheet date. Therefore, there might be material changes to the evaluation.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
Cash on hand and revolving funds Checking accounts and demand deposits Time deposits	March31,2021 3,034 $ 5,293,561 - 5,296,595 $	December31,2020 2,830 $ 3,624,282 - 3,627,112 $	March31,2020
			2,247 $ 6,961,808 4,835,820
			11,799,875 $

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

• B. The Group’s deposits with banks that have been pledged as collateral were classified as ‘other current assets’. Please refer to Note 8 for details. As of March 31, 2021, December 31, 2020 and March 31, 2020, the time deposits with maturity date over 3 months of $15,113, $0 and $23,202, respectively, are recorded as ‘other current assets’.

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

Assets Current items: Derivatives Beneficiary certificates Non-current items: Redeemable bonds Beneficiary certificates Liabilities Current items: Derivatives	March31,2021 7,630 $ 14,435 22,065 $ 318 $ 147,826 148,144 $ 7,559 $	December31,2020 - $ 13,135 13,135 $ 349 $ 114,697 115,046 $ - $	March31,2020
			51,185 $ 50,000
			101,185 $
			- $ -
			- $
			10,333 $

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• A. Amounts recognised in profit or loss in relation to financial assets and liabilities mandatorily measured at fair value through profit or loss are as follows:

		Three-month periods ended March 31,	Three-month periods ended March 31,
		2021	2020
Derivative instruments	$	44,483	121,249 $
Beneficiary certificates		4,399	-
Overseas bonds	(	31)	-
	$	48,851	121,249 $

• B. The non-hedging derivative instruments and contract information are as follows:

Derivativefinancialassets Current items: Forward foreign exchange contracts Derivativefinancial liabilities	USD (BUY) 110,000 USD (BUY) 190,000 USD (BUY) 174,000 USD (BUY) 45,000 March31, Contract amount (Notional principal) (Inthousands) March31, Contract amount (Notional principal) (In thousands)	Contract period 2021.3.23~2021.6.30 2021.3.25~2021.6.30 2021 2020
Current items: Forward foreign exchange contracts Derivative financial assets
		Contractperiod
Current items: Forward foreign exchange contracts Derivativefinancial liabilities		2020.1.16~2020.7.6 2020.2.26~2020.6.30
Current items: Forward foreign exchange contracts

The Group entered into forward foreign exchange contracts to sell USD to hedge exchange rate risk of foreign currency. However, these forward foreign exchange contracts are not accounted for under hedge accounting.

• C. For the derivative transactions, the Group deals with a variety of financial institutions all with high credit quality, so it expects that the probability of counterparty default is remote.

• D. The Group has no financial assets measured at fair value through profit or loss pledged to others.

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

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Items March 31, 2021 December 31, 2020 March 31, 2020
Current items:
-
Equity instruments $ $ 373,071 $ 238,588
Non-current items:
Equity instruments $ 14,767,274 $ 14,826,321 $ 204,266
----- End of picture text -----

• A. The Group has elected to classify certain strategic investments in the aforementioned equity instruments, including publicly listed and privately held companies, as financial assets measured at fair value through other comprehensive income.

• B. The Company exchanged shares with ASMedia Technology Inc. on April 21, 2020 and acquired $6,624,000 of financial assets at fair value through other comprehensive income - non-current. Please refer to Note 6(19) for more details.

• C. Aiming to satisfy its operating capital needs, the Group sold $865,461 and $119,434 of listed and unlisted shares at fair value which resulted in a cumulative gain on disposal of $761,187 and $114,972 during the three-month periods ended March 31, 2021 and 2020, respectively.

• D. Please refer to Note 6(22) for information on changes in fair value recognised in other comprehensive income for the three-month periods ended March 31, 2021 and 2020.

• E. The Group has no financial assets measured at fair value through other comprehensive income pledged to others as of March 31, 2021, December 31, 2020 and March 31, 2020.

(4) Notes and accounts receivable

Notes receivable Accounts receivable Less: Allowance for uncollectible accounts ( Notes and accounts receivable, net Overdue receivables Less: Allowance for uncollectible accounts ( Overdue receivables, net (shown as ‘other non-current assets’)	March 31, 2021 3,218,462 $ 55,946,775 229,656) ( 58,935,581 478,020 478,020) ( - 58,935,581 $	December31,2020 2,511,120 $ 58,567,256 228,084) ( 60,850,292 477,261 477,261) ( - 60,850,292 $	March31,2020 2,014,529 $ 44,985,902 305,002) 46,695,429 980,132 980,132) - 46,695,429 $

• A. As of March 31, 2021, December 31, 2020 and March 31, 2020, accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2020, the balance of receivables from contracts with customers amounted to $45,921,706.

• B. Transferred financial assets that are derecognised in their entirety

• (a) As of March 31, 2021, December 31, 2020 and March 31, 2020, the Group had outstanding discounted notes receivable amounting to $1,166,608, $1,424,001 and $1,378,550, respectively. However, as notes receivable are bank’s acceptance bills and are discounted

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without right of recourse, those discounted notes receivable were deducted directly from notes receivable.

• (b) The Group entered into a factoring agreement with a domestic financial institution to sell its accounts receivable. Under the agreement, the Group is not obligated to bear the default risk of the transferred accounts receivable, but is liable for the losses incurred on any business dispute. The Group does not have any continuing involvement in the transferred accounts receivable. Thus, the Group derecognised the transferred accounts receivable, and the related information is as follows:

information is as follows:
(Amount derecognised) Amount advanced Amount retained (shown as ‘other receivables’) Accounts receivable transferred	March 31, 2021 December 31, 2020 21,463,925 $ 24,147,739 $ 20,957,767 $ 23,727,304 $ 506,158 $ 420,435 $	March 31, 2020
		28,034,964 $
		27,373,667 $
		661,297 $

  - i. The Group transacts 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.

  - ii. As of March 31, 2021, December 31, 2020 and March 31, 2020, the interest rates for amounts advanced ranged between 0.392%~1.38%, 0.392%~1.38% and 1.107%~3.341%, respectively.

  - iii. As of March 31, 2021, December 31, 2020 and March 31, 2020, the total limits of the accounts receivable factoring were $76,564,612, $79,369,034 and $79,601,497, respectively.

  - iv. As of March 31, 2021, December 31, 2020 and March 31, 2020, the Group has issued a promissory note of $174,172,398, $177,137,602 and $156,214,959, respectively, as performance guarantee against any business dispute.

  - v. Please refer to Note 6(28) for information on financing charges on accounts receivable factoring for the three-month periods ended March 31, 2021 and 2020.

• C. Transferred financial assets that are not derecognised in their entirety

• The Group entered into a factoring agreement with domestic financial institutions to sell its accounts receivable. Under the agreement, the Group can transfer non-L/C accounts receivable financing to financial institution, and the bank has the right of recourse to the transferred accounts receivable. For accounts receivable that will not be recovered in the specific period, the Group will retain risk and returns of such accounts receivable. Accordingly, the Group did not derecognise the accounts receivable where the bank has the right of recourse.

As of March 31, 2021, December 31, 2020 and March 31, 2020, the total limits of the accounts receivable factoring agreement with recourse were $934,501, $933,517 and $755,125, respectively. The Group has no accounts receivable that are financed and amount advanced.

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• D. The Group took out a credit insurance on the accounts receivable from certain main customers, whereby 75%~90% of the receivable amount can be covered when the receivables are uncollectible. As at March 31, 2021, December 31, 2020 and March 31, 2020, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes and accounts receivable was the carrying amount of the notes and accounts receivable.

• E. Please refer to Note 8 for details of accounts receivable pledged as security.

• F. As of March 31, 2021, December 31, 2020 and March 31, 2020, the Group’s accounts receivable that are expected to be factored were classified as financial assets at fair value through other comprehensive income in the amounts of $18,216,846, $14,288,166 and $14,474,090, respectively, and recorded as ‘accounts receivable’.

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

(5) Other receivables

12(2). Other receivables
VAT refund receivable Amounts retained for accounts receivable factoring Others	March31,2021 636,426 $ 506,158 42,602 1,185,186 $	December31,2020 628,959 $ 420,435 26,441 1,075,835 $	March31,2020
			531,528 $ 661,297 375,283 1,568,108 $

(6) Inventories

Inventories
Merchandise inventory Less: Allowance for inventory obsolescence and market value decline (	March31,2021 50,518,631 $ 1,041,425) ( 49,477,206 $	December31,2020 45,337,620 $ 1,023,228) ( 44,314,392 $	March31,2020
			44,562,552 $ 996,519) 43,566,033 $

The cost of inventories recognised as expense for the period:

Cost of inventories sold Loss on disposal of inventory Loss on decline in market value Loss on physical inventory	Three-monthperiods endedMarch31,	Three-monthperiods endedMarch31,
	2021 94,134,804 $ 28,069 18,000 - 94,180,873 $	2020
		74,986,856 $ - 9,300 5 74,996,161 $

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(7) Investments accounted for using equity method

Investments accounted for using equity method
		2021		2020
At January 1	$	122,906	$	156,858
Share of loss of investments accounted for using	(	1,303)	(	5,441)
equity
Changes in other equity items	(	202)	(	185)
At March 31	$	121,401	$	151,232

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

		Three-month periods ended	Three-month periods ended	March 31,
		2021		2020
Loss for the period from continuing operations	($	1,303)	($	5,441)
Other comprehensive loss, net of tax	(	286)	(	915)
Total comprehensive loss	($	1,589)	($	6,356)

(8) Property, plant and equipment

At January 1, 2021 Cost Accumulated depreciation and impairment 2021 Opening net book amount Additions Disposals Depreciation charge Net exchange differences Closing net book amount At March 31, 2021 Cost Accumulated depreciation and impairment

Office Land Buildings equipment Others Total 225,459 $ 652,172 $ 438,688 $ 432,193 $ 1,748,512 $ - 127,635) ( 308,044) ( 309,640) ( 745,319) ( 225,459 $ 524,537 $ 130,644 $ 122,553 $ 1,003,193 $ 225,459 $ 524,537 $ 130,644 $ 122,553 $ 1,003,193 $ - - 20,230 5,063 25,293 - - 360) ( 21) ( 381) ( - 3,804) ( 14,833) ( 19,524) ( 38,161) ( - 1,820) ( 1,243) ( 595 2,468) ( 225,459 $ 518,913 $ 134,438 $ 108,666 $ 987,476 $ 225,459 $ 650,218 $ 439,033 $ 431,926 $ 1,746,636 $ - 131,305) ( 304,595) ( 323,260) ( 759,160) ( 225,459 $ 518,913 $ 134,438 $ 108,666 $ 987,476 $

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At January 1, 2020 Cost Accumulated depreciation and impairment 2020 Opening net book amount Additions Disposals Depreciation charge Net exchange differences Closing net book amount At March 31, 2020 Cost Accumulated depreciation and impairment

Office Land Buildings equipment Others Total 225,459 $ 641,873 $ 389,030 $ 354,743 $ 1,611,105 $ - 112,299) ( 249,171) ( 239,225) ( 600,695) ( 225,459 $ 529,574 $ 139,859 $ 115,518 $ 1,010,410 $ 225,459 $ 529,574 $ 139,859 $ 115,518 $ 1,010,410 $ - - 4,856 10,545 15,401 - - 50) ( - 50) ( - 3,752) ( 12,935) ( 13,498) ( 30,185) ( - 3,595) ( 875) ( 283) ( 4,753) ( 225,459 $ 522,227 $ 130,855 $ 112,282 $ 990,823 $ 225,459 $ 638,099 $ 382,831 $ 364,861 $ 1,611,250 $ - 115,872) ( 251,976) ( 252,579) ( 620,427) ( 225,459 $ 522,227 $ 130,855 $ 112,282 $ 990,823 $

• Office and other equipment at March 31, 2021 and 2020 were for the Group’s own use and not for lease.

(9) Leasing arrangements - lessee

• A. The Group leases various assets including land, office and warehouse. Except for right-of-use of land for periods of 20 to 50 years, the rental contracts are typically made for periods of 1 to 10 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. Short-term leases with a lease term of 12 months or less comprise certain offices, business vehicles and printers.

• C. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land Buildings and structures	March31,2021 Carryingamount 280,991 $ 445,126 726,117 $	December31,2020 Carryingamount 283,739 $ 489,113 772,852 $	March31,2020
			Carryingamount
			281,017 $ 546,183
			827,200 $

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Land Buildings and structures	2021 2020 Depreciation charge Depreciation charge 1,484 $ 1,460 $ 47,911 43,045 49,395 $ 44,505 $ Three-monthperiods endedMarch31,

• D. For the three-month periods ended March 31, 2021 and 2020, the additions to right-of-use assets were $6,781 and $28,567, respectively.

• E. The information on income or expense accounts relating to lease contracts is as follows:

D. E.	For the three-month periods ended March 31, 2021 and 2020, the additions to right-of-use assets were $6,781 and $28,567, respectively. The information on income or expense accounts relating to lease contracts is as follows:	For the three-month periods ended March 31, 2021 and 2020, the additions to right-of-use assets were $6,781 and $28,567, respectively. The information on income or expense accounts relating to lease contracts is as follows:
F.	For the three-month periods ended March 31, 2021 and 2020, the Group’s total cash outflow for leases were $68,423 and $62,278, respectively. 2021 2020 Items affecting profit or loss Interest expense on lease liabilities 4,429 $ 4,421 $ Expense on short-term lease contracts 18,548 15,781 Three-month periods ended March 31,
		2020
		total cash outflow for 4,421 $ 15,781

(10) Investment property

At January 1, 2021 Cost Accumulated depreciation and impairment ( 2021 Opening net book amount Depreciation charge Closing net book amount At March 31, 2021 Cost Accumulated depreciation and impairment (	Land 84,736 $ 1,897) ( 82,839 $ 82,839 $ - ( 82,839 $ 84,736 $ 1,897) ( 82,839 $	Buildings 37,099 $ 16,624) ( 20,475 $ 20,475 $ 203) ( 20,272 $ 37,099 $ 16,827) ( 20,272 $	Total 121,835 $ 18,521) 103,314 $ 103,314 $ 203) 103,111 $ 121,835 $ 18,724) 103,111 $

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

Land Buildings Total
At January 1, 2020
Cost $ 84,736 $ 37,099 $ 121,835
Accumulated depreciation
and impairment ( 1,897) ( 15,810) ( 17,707)
$ 82,839 $ 21,289 $ 104,128
2020
Opening net book amount $ 82,839 $ 21,289 $ 104,128
-
Depreciation charge ( 203) ( 203)
Closing net book amount $ 82,839 $ 21,086 $ 103,925
At March 31, 2020
Cost $ 84,736 $ 37,099 $ 121,835
Accumulated depreciation
and impairment ( 1,897) ( 16,013) ( 17,910)
$ 82,839 $ 21,086 $ 103,925
----- End of picture text -----

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

from the investment property are shown below:
Rental income from the lease of the investment property Direct operating expenses arising from the investment property that generated rental income during the period	Three-month periods ended March 31,
	2021 661 $ 203 $	2020
		661 $
		203 $

• B. The fair values of the investment property held by the Group as at March 31, 2021, December 31, 2020 and March 31, 2020 were $176,649, $184,376 and $135,330, respectively, which were based on the valuation of market prices estimated using comparison approach and is categorised within Level 2 in the fair value hierarchy.

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(11) Intangible assets

At January 1, 2021 Cost Accumulated amortisation and impairment ( 2021 Opening net book amount Additions Amortisation charge (shown as ‘general and administrative expenses’) Net exchange differences ( Closing net book amount At March 31, 2021 Cost Accumulated amortisation and impairment ( At January 1, 2020 Cost Accumulated amortisation and impairment ( 2020 Opening net book amount Amortisation charge (shown as ‘general and administrative expenses’) Net exchange differences Closing net book amount At March 31, 2020 Cost Accumulated amortisation and impairment (

Goodwill Software Others Total 2,046,410 $ 107,496 $ 69,152 $ 2,223,058 $ 220,132) 88,076) ( 3,237) ( 311,445) ( 1,826,278 $ 19,420 $ 65,915 $ 1,911,613 $ 1,826,278 $ 19,420 $ 65,915 $ 1,911,613 $ - 430 - 430 - 2,074) ( 2,286) ( 4,360) ( 565) - 854 289 1,825,713 $ 17,776 $ 64,483 $ 1,907,972 $ 2,045,845 $ 107,926 $ 70,038 $ 2,223,809 $ 220,132) 90,150) ( 5,555) ( 315,837) ( 1,825,713 $ 17,776 $ 64,483 $ 1,907,972 $ Goodwill Software Others Total 2,028,000 $ 102,488 $ 5,381 $ 2,135,869 $ 174,119) 77,891) ( - 252,010) ( 1,853,881 $ 24,597 $ 5,381 $ 1,883,859 $ 1,853,881 $ 24,597 $ 5,381 $ 1,883,859 $ - 2,785) ( - 2,785) ( 4,902 - - 4,902 1,858,783 $ 21,812 $ 5,381 $ 1,885,976 $ 2,032,902 $ 102,488 $ 5,381 $ 2,140,771 $ 174,119) 80,676) ( - 254,795) ( 1,858,783 $ 21,812 $ 5,381 $ 1,885,976 $

A. Other intangible assets mainly pertain to customer relationship.

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

Greater China Region All other segments	March31,2021 Retail 1,171,389 $ 654,324 1,825,713 $	December31,2020 Retail 1,171,171 $ 655,107 1,826,278 $	March31,2020 Retail 1,235,134 $ 623,649 1,858,783 $

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

• Management determined budgeted gross margin based on past performance and their expectations of market development. The assumptions used for weighted average growth rates are based on past historical experience and expectations of industry; the assumption used for discount rate is the weighted average capital cost of the Group. As of March 31, 2021, December 31, 2020 and March 31, 2020, the key valuations used for pre-tax discount rate were 5.96%~10.38%, 4.57%~10.3% and 6.29%~9.87%, respectively.

• D. There were no intangible assets that were pledged to others.

(12) Short-term borrowings

(13)	Short-term notes and bills payable Credit loans Interest rates per annum Commercial paper Amortisation of discount ( Coupon rate	March31,2021 30,053,513 $ 0.6344%~3.73% March 31, 2021 1,208,000 $ 466) ( 1,207,534 $ 0.261%~0.722%	December31,2020 23,314,455 $ 0.5186%~3.65% December31,2020 748,000 $ 357) ( 747,643 $ 0.331%~0.572%	March31,2020 45,995,333 $ 0.9155%~4.002% March31,2020 1,065,000 $ 909) 1,064,091 $ 0.61%~0.88%

The notes and bills were issued under securities and acceptance offered by the financial institutions to fund short-term capital. The issuance period is within 90 days.

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(14) Other payables

(15)	Bonds payable Salaries and bonuses payable Freight payable Accrued VAT payable Costs to provide technical services payable Insurance expense payable Finance cost payable Dividends payable Others Bonds payable Less: Discount on bonds payable (	March31,2021 December31,2020 March31,2020 746,932 $ 1,041,708 $ 564,036 $ 134,190 166,243 111,994 152,625 112,611 360,300 97,984 85,489 92,651 63,368 55,590 63,914 36,540 38,570 114,521 - - 1,645,111 185,592 223,068 209,080 1,417,231 $ 1,723,279 $ 3,161,607 $ March31,2021 December31,2020 March31,2020 382,600 $ 384,100 $ 1,114,700 $ 5,741) 6,906) ( 29,927) ( 376,859 $ 377,194 $ 1,084,773 $

• A. Sixth unsecured convertible bonds of 2019

• (a) The terms of the sixth domestic unsecured convertible bonds issued by the Company are as follows:

  • i. The Company issued $1,200,000, 0%, sixth domestic unsecured convertible bonds, as approved by the regulatory authority. The bonds mature 3 years from the issue date (July 1, 2019 ~July 1, 2022) and will be redeemed in cash at face value at the maturity date. The bonds were listed on the Taipei Exchange on July 1, 2019.

  • ii. The bondholders have the right to ask for conversion of the bonds into common shares of the Company during the period from the date after three months of the bonds issue to the maturity date, except for the stop transfer period as specified in the terms of the bonds or the laws/regulations. The rights and obligations of the new shares converted from the bonds are the same as the issued and outstanding common shares.

  • iii. The conversion price of the bonds is set up based on the pricing model as specified in the terms of the bonds (with the conversion price at NT$40 per share), and is subject to adjustments if the condition of the anti-dilution provisions occurs subsequently. On March 31, 2021, the conversion price was NT$28.2 per share.

  • iv. Under the terms of the bonds, all bonds redeemed (including bonds repurchased from securities trading markets), matured and converted are retired and not to be resold or reissued; the convertible rights attached to the bonds are also extinguished.

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  - (b) Regarding the issuance of convertible bonds, the equity conversion options amounting to $37,762 were separated from the liability component and were recognised in ‘capital surplus share options’ amounting to $12,040 as of March 31, 2021, in accordance with IAS 32.

  - (c) As of March 31, 2021, the convertible bonds converted into 26,949 thousand common shares totaled $817,400 at par value.

• B. For the three-month periods ended March 31, 2021 and 2020, the amortised discount of bonds payable was $1,138 and $3,275, respectively.

• (16) Long-term loans

payable was $1,138 and $3,275, respectively. Long-term loans
Type of loans Period Mid-term borrowings (Bank of Taiwan) 2020/9/14~2022/9/14 Interest rate Less: Long-term borrowings, current portion Type of loans Period Mid-term borrowings (Bank of Taiwan) 2020/9/14~2022/9/14 Interest rate Less: Long-term borrowings, current portion	Creditline Amount 800,000 $ 800,000 $ 400,000) ( 400,000 $ 1.2% March 31, 2021 Creditline Amount 800,000 $ 800,000 $ - 800,000 $ 1.2% December31,2020
	Creditline 800,000 $

Interest rate

• A. Under the Bank of Taiwan borrowing contract, the Group shall review the average balance of demand deposits every six months during the contract period in order to maintain the interest rate markup.

B. The Group’s liquidity risk is provided in Note 12.

(17) Pensions

A. Defined benefit pension plan

• (a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiaries contribute monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name

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of the independent retirement fund committee. Also, the Group would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Group will make contributions for the deficit by next March.

  - (b) For the aforementioned pension plan, the Group recognised pension costs of 351 and $393 for the three-month periods ended March 31, 2021 and 2020, respectively.

  - (c) Expected contributions to the defined benefit pension plan of the Group for the year ending December 31, 2022 amount to $4,154.

• B. Defined contribution pension plan

  • (a) Effective July 1, 2005, the Company and its domestic subsidiaries have established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

  • (b) The Company’s subsidiaries in Mainland China have a defined contribution plan in accordance with the pension regulations in the People’s Republic of China (PRC). These companies contribute monthly an amount based on 1%~21% of the employees’ monthly salaries based on the employees’ domiciles to their independent funds administered by the government. For the subsidiaries in Hong Kong, these companies and its employees each contribute monthly an amount equal to 5% of the employees’ monthly salaries pursuant to the legislation in Hong Kong. Each fund is managed by the government. Except for the monthly contribution, these companies have no other obligation.

  • (c) The pension costs under the defined contribution pension plan of the Group for the threemonth periods ended March 31, 2021 and 2020 were $58,050 and $44,281, respectively.

• (18) Share-based payment

• A. For the three-month periods ended March 31, 2021, the Group’s share-based payment arrangements are as follows:

Vesting Type of arrangement Grant date Quantity granted conditions Cash capital increase reserved for 2020.8.17 520 Vested employee preemption thousand shares immediately Restricted stocks to employees 2021.1.13 2,992 (a) and (b) thousand shares Employee stock options 2021.3.18 12,000 (c) thousand shares

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• (a) The vesting percentage for the employee who has rendered service to the Company since the grant date and achieves the performance condition is 25% each year.

• (b) The issued employee restricted shares before meeting the vesting conditions are subject to certain restrictions as follows:

  • i. Employee restricted shares cannot be sold, pledged, transferred, donated to others, set purposes or disposed in any other ways, except for inheritance.

  • ii. The rights to attend, propose, speak and vote at the shareholders meeting are the same as the issued ordinary shares of the Company and are implemented in accordance with the trust custody contract.

  • iii. Other rights including but not limited to dividends, distribution rights of legal reserve and capital surplus and share options of cash capital increase, etc. are the same as the Company’s issued ordinary shares, do not need to be kept in trust and are not restricted by the vesting period. Employees are required to return the unvested stocks but not required to return the dividends received if they resign during the vesting period.

• (c) Employees can exercise 50%, 25% and 25% of their option after 2 years, 3 years and 4 years from the grant date of employee stock options, respectively.

• B. The fair value of stock options granted on grant date is measured using the Black-Scholes optionpricing model. Relevant information is as follows:

==> picture [496 x 253] intentionally omitted <==

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• C. Details of the stock options for the three-month period ended March 31, 2021 are disclosed as follows:

follows:
Options outstanding at January 1 Options granted Options outstanding at March 31	No. of options (in thousands) - 12,000 12,000	Weighted-average exercise price (in dollars) - $ 46.8 46.8 $ 2021	Weighted-average remaining contractualperiod
			5.96 years

• D. Compensation cost of share-based payment of $9,034 was recognised for cash capital increase reserved for employee preemption for the three-month period ended March 31, 2021.

(19) Share capital

As of March 31, 2021, the Company’s authorised capital was $15,000,000, including partial preferred shares, consisting of 1.5 billion shares (including 120 million shares reserved for employee stock options), and the paid-in capital was $9,262,237 with a par value of $10 (in dollars) per share. All proceeds from shares issued have been collected.

Common stock

• A. Movements in the number of the Company’s ordinary shares (including certificate of entitlement to new shares from convertible bonds) outstanding are as follows:

At January 1 Issuance of employee restricted shares Shares converted from bonds At March 31	2021 2020 Shares (in thousands) Shares (in thousands) 788,232 591,437 2,992 - 53 1,168 791,277 592,605	2021 2020 Shares (in thousands) Shares (in thousands) 788,232 591,437 2,992 - 53 1,168 791,277 592,605
		591,437 - 1,168
		592,605

• B. On February 21, 2020, the Company’s Board of Directors resolved to increase capital of $1,710,000 by issuing 171 million ordinary shares in the amount of $6,624,000 with a par value of NT$10 (in dollars) per share to exchange for 9 million shares of ASMedia Technology Inc. The transaction was approved by the Financial Supervisory Committee on April 17, 2020, and the effective date was set on April 21, 2020.

• C. As of March 31, 2021, convertible bonds amounting to $1,500 in total par value were requested for conversion into 53 thousand ordinary shares. The amount was recorded under ‘certificate of entitlement to new shares from convertible bonds’ because the change in registration has not yet been completed as of March 31, 2021.

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• D. On March 27, 2020, the stockholders resolved the issuance of employee restricted shares with a par value of $10 (in dollars) per share. The issuance can be granted several times within a year. A total of 2,992 thousand shares were issued for the first time and the effective date was set on January 18, 2021.

Preference stock

On July 2, 2020, the Board of Directors resolved to increase the Company’s capital in the amount of $6,750,000 by issuing 135 million shares of Class A preference shares with a par value of $10 (in dollars) per share issued at $50 (in dollars) per share. The capital injection was approved by the FSC on July 29, 2020, and the effective date was set on October 15, 2020. The rights and obligations of these outstanding preference shares are as follows:

• A. Expiration date: The Company’s Class A preference shares are perpetual. The stockholders of Class A preferred stocks cannot request the Company to retire the preferred stocks they hold but all or certain parts are callable at any time from the next day of five years after issuance at the actual issue price. The outstanding Class A preference shares sustained all the rights and obligations specified in the issuance terms. Dividends payable as of the redemption date shall be calculated based on the actual outstanding days if the Board of Directors resolved to distribute the current year’s dividends.

• B. Dividends: Dividends are calculated at 4% per annum, consisting of five-year IRS rate of 0.6125% on pricing effective date (August 17, 2020) and specific markup of 3.3875%, 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 “PYTWDFIX” and “COSMOS3” at 11:00 a.m. (Taipei time) on the relevant pricing effective date of rate reset. If such rate cannot be obtained, the Company will determine the rate based on the reasonable market price with good faith.

• C. Dividend distribution: Dividends of Class A preference shares are distributed once per year in the form of cash. The effective date for distributing previous year’s distributable dividends will be set by the Board of Directors or the chairman who is authorised by the Board of Directors. Dividend distributions in the issuance and redemption years are calculated based on the actual outstanding days. The current year's earnings, if any, shall first be used to pay all taxes and offset prior years' operating deficit and then set aside as legal reserve. Special reserve shall be set aside or reversed as required by regulations or the Competent Authority when necessary. The remainder, if any in the current year, can be distributed as dividends of preferred shares in first priority.

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

• D. Excess dividend distribution: Besides the aforementioned dividends, the shareholders of Class A preference shares could not participate in the distribution of cash and capitalised assets for common shares derived from earnings and capital surplus.

• E. Residual property distribution: The shareholders of Class A preference shares have priority over shareholders of common stocks in distributing the Company’s residual properties and have the same priority with other preferred shareholders of the Company, but behind the general creditor. In addition, the limit is the amount calculated by shares of outstanding preference shares issued and the issue price when distributing.

• F. Right to vote and be elected: The shareholders of Class A preference shares have no right to vote and be elected in the ordinary shareholders’ meeting of the Company but have the right to vote in the shareholders’ meeting for shareholders of Class A preference shares only and shareholders’ meeting regarding unfavourable matters to rights and obligations of shareholders of Class A preference shares.

• G. Conversion to common shares: Class A preference shares could not be converted to common shares.

• H. The preemptive rights for shareholders of Class A preference shares are the same as of common shareholders when the Company increases its capital by issuing new shares.

• I. Capital surplus arising from premium issuance of Class A preference shares can be used to offset against accumulated deficit but cannot be capitalised during the issuance period.

(20) 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 to the above considerations, the R.O.C. Securities and Exchange Law requires that the amount of capital surplus to be capitalised 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. Changes in capital surplus are as follows:

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At January 1 Issuance of employee restricted shares Compensation cost of share-based payments Conversion of convertible bonds At March 31 At January 1 Conversion of convertible bonds At March 31	Treasury Restricted Share share Stock stocks to premium transactions options employees 20,033,915 $ 40,742 $ 12,087 $ - $ - - - 88,513 - - 1,290 - 988 - 47) ( - 20,034,903 $ 40,742 $ 13,330 $ 88,513 $ 2021 Treasury Share share Stock premium transactions options 9,446,398 $ 40,742 $ 36,459 $ 32,298 - 1,381) ( 9,478,696 $ 40,742 $ 35,078 $ 2020

• B. For the information relating to capital surplus-share options, please refer to Note 6(15).

(21) Retained earnings

• A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve until the legal reserve equals the paid-in capital. Special reserve shall be set aside or reversed as required by regulations or the Competent Authority when necessary. The remainder, if any, in the current year, shall be distributed as the dividend of preferred shares in first priority and then along with beginning unappropriated earnings is the accumulated distributable earnings which will be proposed to be distributed by the Board of Directors and resolved by the shareholders.

• B. In accordance with Article 240 of the Company Act, the Board of Directors is authorised, upon resolution adopted by a majority vote at a meeting of the Board of Directors attended by twothirds of the total number of directors, to distribute dividends and bonus of all or part of the legal reserve and capital surplus in the form of cash based on the regulations specified in Article 241 of the Company Act which shall be reported to the shareholders during their meeting. Said distribution is not subject to the regulation which requires that the distribution shall be resolved by the shareholders during their meeting.

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• C. The Company’s dividend policy is regulated by the Board of Directors taking into consideration the Company’s operations, future investment plans, capital budget and internal/external situations. As the Company is in the growth stage, most of retained earnings will be used to support business development and investment requirements and consequently, the minimum cash dividend and extra dividend policy is adopted by the Company. The Company’s dividend policy is summarised below:

• At least 40% of the Company’s earnings shall be appropriated as stock dividends and cash dividends, taking into account profits in the future and capital needs, and cash dividends shall account for at least 10% of the total dividends distributed. In the event the total earnings appropriation exceeds 30% of the Company’s paid-in capital before appropriation, cash dividends shall account for at least 20% of the total dividends distributed.

• D. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the balance of the reserve exceeds 25% of the Company’s paid-in capital.

• E. 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.

• F. The following are the earnings appropriation for the year ended December 31, 2020 proposed by the Board of Directors in April 2021, and the earnings appropriation for the year ended December 31, 2019 resolved during the stockholders’ meeting held in March 2020:

Years ended December 31,

Dividends per share Amount (in dollars) Legal reserve 396,453 $ Special reserve 791,142) ( Dividends on preference share 57,541 0.426 $ Cash dividends of ordinary shareholders 2,532,086 3.200 2,194,938 $ 2020	2019	2019
	Amount 261,034 $ 647,574 - 1,645,111 2,553,719 $	Dividends per share (in dollars)
		2.776 $

Information on the appropriation of the Company’s earnings as resolved by the Board of Directors and approved by the stockholders will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

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(22) Other equity items

Other equity items
			Unrealised
		gains (losses)				Currency			Unearned
		onvaluation			translation			compensation				Total
At January 1, 2021	$		8,208,070	($		2,600,106)		$		-	$	5,607,964
Valuation adjustment on
equity instruments	(		353,739)				-			-	(	353,739)
Disposals reclassified as
retained earnings	(		761,162)				-			-	(	761,162)
Currency translation differences:
– Group			-	(			9,364)			-	(	9,364)
– Associates			-	(			286)			-	(	286)
Issuance of employee restricted
shares			-				-	(	118,433)		(	118,433)
Compensation cost of
share-based payments			-				-		7,744			7,744
At March 31, 2021	$		7,093,169	($		2,609,756)		($	110,689)		$	4,372,724
			Unrealised
			gains (losses)				Currency
			onvaluation				translation					Total
At January 1, 2020		$	368,652			($	1,159,794)			(		791,142)
Valuation adjustment on
equity instruments	(		110,424)						-	(		110,424)
Disposals reclassified as
retained earnings	(		114,972)						-	(		114,972)
Currency translation differences:
– Group					-			99,617				99,617
– Associates					-	(			915)	(		915)
At March 31, 2020		$	143,256			($	1,061,092)			($		917,836)

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(23) Non-controlling interests

(23)	Non-controlling interests	Non-controlling interests	Non-controlling interests
(24)	Operating revenue 2021 2020 At January 1 38,364 $ 742 $ Share attributable to non-controlling interest: Profit for the period 14,373) ( 73 Exchange differences on translation of foreign financial statements 1,115 4 Unrealised financial assets at fair value through other comprehensive income 11) ( - Disposal of financial assets at fair value through other comprehensive income reclassified as retained earnings 25 - At March 31 25,120 $ 819 $ Contract revenue 2021 2020 Sale of electronic components 97,484,357 $ 77,440,840 $ Services revenue 120,295 - Other operating revenue 41,726 34,819 97,646,378 $ 77,475,659 $ Three-month periods ended March 31,
		2021 97,484,357 $ 120,295 41,726 97,646,378 $	2020
			77,440,840 $ - 34,819
			77,475,659 $

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

time in the following major product lines:
Timing of revenue At a point of time Analog IC Microcontroller IC Memory Microprocessor Discrete Devices Application-Specific IC Mixed-Signal IC Others Over time Services	Three-monthperiods endedMarch31,
	2021 34,370,979 $ 8,741,407 9,499,999 6,730,370 8,141,331 416,423 4,884,011 24,741,563 120,295 97,646,378 $	2020
		34,624,075 $ 5,328,260 6,060,811 5,799,035 3,716,331 4,372,943 3,055,059 14,519,145 -
		77,475,659 $

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• B. The Group has recognised the following revenue-related contract liabilities provisions for estimated sales discounts:

March 31, 2021 December 31, 2020 March 31, 2020 January 1, 2020

==> picture [461 x 87] intentionally omitted <==

(25) Interest income

Interest income from bank deposits Other interest income

==> picture [217 x 75] intentionally omitted <==

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

Three-month periods ended March 31,
2021 2020
$ 1,239 $ 2,697
151 1,002
$ 1,390 $ 3,699
----- End of picture text -----

(26) Other income

Dividend income Grant revenue Other income

==> picture [217 x 91] intentionally omitted <==

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

Three-month periods ended March 31,
2021 2020
-
$ 10,196 $
2,948 754
8,171 6,392
$ 21,315 $ 7,146
----- End of picture text -----

(27) Other gains and losses

Other gains and losses
		Three-monthperiods		ended	March31,
		2021			2020
Foreign exchange loss, net	($	32,623)	($		89,886)
Gain on financial assets and liabilities at
fair value through profit or loss		48,851			121,249
Other losses	(	5,444)	(		2,162)
	$	10,784		$	29,201
Finance costs
		Three-monthperiods		ended	March31,
		2021			2020
Interest expense:
Bank borrowings	$	87,166		$	215,116
Others		7,185			10,120
Financing charges on accounts receivable
factoring		46,463			170,144
Other finance costs		8,565			8,067
	$	149,379		$	403,447

(28) Finance costs

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(29) Expenses by nature

Employee benefit expense Depreciation Amortisation Total (shown as ‘Operating expenses’)	2021 2020 932,539 $ 862,629 $ 87,759 74,893 4,360 2,785 1,024,658 $ 940,307 $ Three-monthperiods ended March31,

(30) Employee benefit expense

Employee benefit expense
Employee benefit expense Wages and salaries Labour and health insurance fees Pension costs Other personnel expenses Total (shown as ‘Operating expenses’)	2021 2020 785,208 $ 706,835 $ 35,667 30,901 58,401 44,674 53,263 80,219 932,539 $ 862,629 $ Three-monthperiods endedMarch31,
		862,629 $

• A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ remuneration. The ratio shall not be lower than 1% for employees’ compensation and shall not be higher than 3% for directors’ remuneration.

• B. For the three-month periods ended March 31, 2021 and 2020, employees’ compensation was accrued at $17,300 and $9,800, respectively; while directors’ remuneration was accrued at $2,625 and $4,050, respectively. The aforementioned amounts were recognised in salary expenses. The employees’ compensation and directors’ remuneration were estimated and accrued based on distributable profit of current year for the three-month periods ended March 31, 2021 and 2020.

Employees’ compensation and directors’ remuneration for 2020 as resolved by the directors during its meeting were in agreement with those amounts recognised in profit or loss for 2020. Information about employees’ compensation and directors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

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(31) Income tax

A. Income tax expense

ome tax Income tax expense
		Three-monthperiods ended		March31,
		2021		2020
Current tax:
Current tax on profit for the period	$	295,916	$	79,453
Tax on undistributed surplus earnings		-		2,831
Prior year income tax overestimation	(	2,168)	(	1,556)
Total current tax		293,748		80,728
Deferred tax:
Origination and reversal of temporary
differences		108,759		95,073
Impact of change in tax rate		-	(	6,228)
Total deferred tax		108,759		88,845
Income tax expense	$	402,507	$	169,573

B. The Company’s income tax returns through 2018 have been assessed and approved by the Tax Authority.

(32) Earnings per share

Authority. Earnings per share
Basic earnings per share Profit attributable to shareholders of the parent Diluted earnings per share Profit attributable to shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Conversion of convertible bonds Restricted stocks to employees Employees’ compensation Profit attributable to shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Three-monthperiod ended March31,2021
	Amount aftertax 1,510,027 $ 1,510,027 1,138 - - 1,511,165 $	Weighted average number of ordinary shares outstanding (shares inthousands) 788,276 788,276 13,576 280 968 803,100	Earnings per share (indollars)
			1.92 $ 1.88 $

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Basic earnings per share Profit attributable to shareholders of the parent Diluted earnings per share Profit attributable to shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Conversion of convertible bonds Employees’ compensation Profit attributable to shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Weighted average number of ordinary shares Earnings Amount outstanding (shares per share aftertax inthousands) (indollars) 616,034 $ 592,365 1.04 $ 616,034 592,365 3,275 29,886 - 674 619,309 $ 622,925 0.99 $ Three-monthperiod ended March31,2020	Weighted average number of ordinary shares Earnings Amount outstanding (shares per share aftertax inthousands) (indollars) 616,034 $ 592,365 1.04 $ 616,034 592,365 3,275 29,886 - 674 619,309 $ 622,925 0.99 $ Three-monthperiod ended March31,2020
		1.04 $ 0.99 $

(33) Business combination

As of March 31, 2021 and 2020, the Group’s mergers are as follows:

The Group acquired all the equity interest of Analog World Co., Ltd. (“AWC Company”) and part of electronic component distribution business of Analog Tech Systems, Inc. (“ATS Company”) and Analogtechsys Limited (“ATL Company”).

• A. The Company and the Company’s subsidiary, Morrihan International Corp., acquired all the equity interest of AWC Company in cash and part of the electronic component distribution business of ATS Company and ATL Company in the amount of $397,230 (US$13,539 thousand) and $38,149 (US$1,300 thousand) as resolved by the Board of Directors on July 2, 2020, respectively, and the effective date for the share conversion was set on October 5, 2020. AWC Company, ATS Company and ATL Company are primarily engaged in the distribution and sale of various electronic components. The purpose of the combination is to improve and enhance the Company’s ADI product line targeting the Korean market in order to increase the Group’s operating performance.

• B. The following table summarises the consideration paid for AWC Company, ATS Company and ATL Company, and the fair values of the assets acquired and liabilities assumed at the acquisition date:

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		October5,2020
Purchase consideration
Cash paid	$	435,379
Fair value of the identifiable assets acquired and liabilities assumed
Cash		181,396
Accounts receivable		117,659
Inventories		52,610
Prepayments		1,040
Property, plant and equipment		2,100
Deferred tax assets		1,280
Other non-current assets		10,991
Accounts payable	(	43,695)
Other payables	(	15,400)
Current income tax liabilities	(	2,016)
Other current liabilities	(	2,038)
Total identifiable net assets		303,927
Fair value of the identifiable intangible assets acquired - customer		66,140
Goodwill	$	65,312

As of March 31, 2021, the allocation of the purchase price of the acquisition is still in process, and the Company has hired experts to assess the fair value of the identifiable assets.

C. The operating revenue and profit before income tax included in the consolidated statement of comprehensive income since October 5, 2020 contributed by AWC Company was $251,874 and $4,490. Had AWC Company been consolidated from January 1, 2020, the consolidated statement of comprehensive income would show operating revenue of $353,887,965 and profit before income tax of $4,822,937.

(34) Supplemental cash flow information

• A. Cash paid for property, plant and equipment:

		Three-month periods ended	Three-month periods ended	March 31,
		2021		2020
Purchase of property, plant and equipment	$	25,293	$	15,401
Add: Opening balance of payable on equipment		3,456		4,879
Ending balance of prepayments for
business facilities		6,230		469
Less: Ending balance of payable on equipment	(	2,036)	(	3,846)
Opening balance of prepayments for
business facilities Cash paid during the period	$	- 32,943	( $	1,609) 15,294

B. Financing activities with no cash flow effects

~57~

		Three-monthperiods ended	Three-monthperiods ended	March31,
		2021		2020
Conversion of bonds payable	$	532	$	11,676
Capital surplus of bonds payable conversion		941		30,917
Conversion of convertible bonds payable	(	1,473)	(	42,593)
Cash paid during the period	$	-	$	-

(35) Changes in liabilities from financing activities

Short-term borrowings (Note) At January 1, 2021 24,114,455 $ Changes in cash flow from financing activities 6,751,468 Impact of changes in foreign exchange rate 12,410) ( Interest expense from amortisation - Conversion of convertible bonds - Increase in lease liability for the period - At March 31, 2021 30,853,513 $ Short-term borrowings (Note) At January 1, 2020 26,116,068 $ Changes in cash flow from financing activities 19,888,274 Impact of changes in foreign exchange rate 9,009) ( Interest expense from amortisation - Conversion of convertible bonds - Increase in lease liability for the period - At March 31, 2020 45,995,333 $

Liabilities Short-term from notes and Bonds Lease financing billspayable payable liability activities-gross 747,643 $ 377,194 $ 499,922 $ 25,739,214 $ 458,273 - 45,446) ( 7,164,295 - - 2,870) ( 15,280) ( 1,618 1,138 - 2,756 - 1,473) ( - 1,473) ( - - 6,781 6,781 1,207,534 $ 376,859 $ 458,387 $ 32,896,293 $ Liabilities Short-term from notes and Bonds Lease financing billspayable payable liability activities-gross 463,840 $ 1,124,091 $ 572,573 $ 28,276,572 $ 597,827 - 42,076) ( 20,444,025 - - 3,241) ( 12,250) ( 2,424 3,275 - 5,699 - 42,593) ( - 42,593) ( - - 28,567 28,567 1,064,091 $ 1,084,773 $ 555,823 $ 48,700,020 $

~58~

Note: Including long-term loans - current portion

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Note: Including long-term loans - current portion LATED PARTY TRANSACTIONS Names of related parties and relationship
Names of related parties	Relationship withthe Company
JCD Optical Corporation Limited JCD Optical Corporation Qwave Technology Co., Ltd. BRILLNICS (HK) LIMITED WPG Holding Co., Ltd. and Subsidiaries (Note 1) ASUSTeK Computer Inc. and Subsidiaries (Note 2)	Indirectly reinvested associate of the Company Indirectly reinvested associate of the Company Indirectly reinvested associate of the Company Indirectly reinvested associate of the Company Entity with significant influence over the Group Entity with significant influence over the Group

• Note 1: On January 30, 2020, WPG Holdings Limited acquired 177,110,000 shares of the Company and became the related party who has significant influence over the Group.

• Note 2: On April 21, 2020, ASUSTeK Computer Inc.’s subsidiary, ASMedia Technology Inc., became a related party with significant influence over the Group by exchanging shares with the Company and acquiring 171,000 thousand shares of the Company.

(2) Significant related party transactions

A. Operating revenue

• Sales of goods: - Entity with significant influence over the Group

Three-monthperiods endedMarch31,	Three-monthperiods endedMarch31,
2021 812,139 $	2020 64,019 $

The collection terms with related parties were 45 to 120 days and the products were categorised and priced after referring to the inventory cost, market and other transaction conditions.

B. Purchases

Purchases
Purchases of goods: - Entity with significant influence over the Group - Associates	Three-monthperiods endedMarch31,
	2021 262,754 $ 6,184 268,938 $	2020
		33,054 $ 8,193
		41,247 $

The credit term to related parties is 30 to 45 days and the purchase prices were categorised and priced after referring to market prices and other transaction conditions.

~59~

C. Receivables from related parties

D.	Payables to related parties Accounts receivable: - Entity with significant influence over the Group - Associates Accounts payable: - Entity with significant influence over the Group - Associates	March31,2021 440,370 $ - 440,370 $ March31,2021 100,952 $ 1,993 102,945 $	December31,2020 193,079 $ 723 193,802 $ December31,2020 75,937 $ 2,139 78,076 $	March31,2020 60,536 $ - 60,536 $ March31,2020
				39,063 $ 2,164 41,227 $

E. Loans to others

Loans to related parties:

(a) Outstanding balance (shown as ‘other receivables’):

- Associate BRILLNICS (HK) LIMITED	March 31, 2021 - $	December31,2020 - $	March31,2020
			172,169 $

The above loan was collected during the year ended December 31, 2020. For the three-month period ended March 31, 2020, the interest rate for the above loan to related party was 2.1%~2.6%.

• (b) Interest income

2.1%~2.6%. Interest income
- Associate	Three-monthperiods ended March31,
	2021 - $	2020
		1,002 $

(3) Key management compensation

(b) Interest income Key management compensation - Associate	2021 2020 - $ 1,002 $ Three-monthperiods ended March31,	2021 2020 - $ 1,002 $ Three-monthperiods ended March31,
Salaries and other short-term employee benefits Post-employment benefits Share-based payment	Three-monthperiods ended March31,
	2021 12,464 $ 115 684 13,263 $	2020
		13,305 $ 67 -
		13,372 $

~60~

8. PLEDGED ASSETS

The details of the Group’s assets pledged as collateral are as follows:

Book value Pledged asset Purpose March 31, 2021 December 31, 2020 March 31, 2020 Other current assets: Bank deposits Bid bond $ 2,766 $ 2,763 $ 2,930

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

• (1) Contingencies

None.

• (2) Commitments

• A. Outstanding letters of credit

The amounts of outstanding letters of credit for the purchase of inventories by the Group are as follows:

follows:
Guarantee for customs duties The total guarantee for customs Outstanding letters of credit Customs duties guarantee	duties is as follows: March31,2021 December 31, 2020 8,570,367 $ 8,096,213 $ March31,2021 December 31, 2020 37,000 $ 41,000 $	March 31, 2020
		5,788,605 $
		March31,2020
		31,000 $

• B. Guarantee for customs duties

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

• (1) Details of the appropriation of 2020 earnings as resolved by the Board of Directors on April 16, 2021 are provided in Note 6(21).

• (2) On April 16, 2021, the Board of Directors resolved the issuance of employee restricted stocks of 3,000,000 common shares with a par value of $10 (in dollars) per share, amounting to $30,000,000. The issuance should be reported to the regulatory authority once or several times within a year starting from the date resolved at the shareholders’ meeting. Depending on the actual needs, the issuance can be granted in once or several times within a year starting from the date of receipt of the notice of effective registration. The chairman of the Board is authorised by the Board of Directors to set the actual issuance date.

• (3) On April 16, 2021, the Board of Directors of the Company resolved to increase capital by issuing common shares domestically and/or to increase capital by issuing common shares to participate in the issuance of the global depository receipts. The Company plans to propose at the shareholders’ meeting to authorise the Board of Directors to increase the capital by selecting an appropriate timing and a financing instrument through one of the methods or a combination of the two once or several times and up to a maximum number of 120 million shares depending on the market environment

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and the Company’s capital needs. The common shares for domestic capital increase will be issued through book building or public subscription.

12. OTHERS

(1) Capital management

The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to shareholders, issue new shares or sell assets to reduce debt. The Group monitors capital on the basis of the financial debt ratio. This ratio is calculated as total liabilities with interests divided by total net assets. Total liabilities with interest is calculated as total amount of long-term and short-term borrowings, short-term bills payable and corporate bonds payable in the consolidated balance sheet. Total equity is calculated as the ‘equity’ in the consolidated balance sheet.

In 2021 and 2020, the Group’s strategy was to maintain the financial debt ratio below 250%.

(2) Financial instruments

A. Financial instruments by category

nancial instruments Financial instruments by category
Financial assets Financial assets at fair value through profit or loss (Note 1) Financial assets at fair value through other comprehensive income (Note 2) Financial assets at amortised cost (Note 3) Financial liabilities Financial liabilities at fair value through profit or loss (Note 4) Financial liabilities at amortised cost (Note 5) Lease liability	March31,2021 170,209 $ 32,984,120 47,333,561 80,487,890 $ 7,559 $ 84,877,072 84,884,631 $ 458,387 $	December31,2020 128,181 $ 29,487,558 51,386,108 81,001,847 $ - $ 81,912,793 81,912,793 $ 499,922 $	March31,2020
			101,185 $ 14,916,944 45,725,367
			60,743,496 $
			10,333 $ 84,258,298
			84,268,631 $
			555,823 $

Note 1: Financial assets mandatorily measured at fair value through profit or loss.

Note 2: Including notes receivable and accounts receivable that are expected to be factored (net) and equity instrument.

• Note 3: Including cash and cash equivalents, notes receivable and accounts receivable that are not expected to be factored (net), other receivables, guarantee deposits paid and other current assets.

Note 4: Held for trading.

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• Note 5: Including short-term borrowings, short-term notes and bills payable, accounts payable, other payables, long-term liabilities - current portion, bonds payable, long-term borrowings and guarantee deposits received.

• B. Risk management policies

• (a) The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. To minimise any adverse effects on the financial performance of the Group, derivative financial instruments, such as foreign exchange forward contracts and foreign currency option contracts are used to hedge certain exchange rate risk. In addition, foreign exchange risk is managed by matching the payment periods of foreign currency assets and liabilities.

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

• (c) Information about derivative financial instruments that are used to hedge certain exchange rate risk is 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 in various functional currency, primarily with respect to the USD. Foreign exchange risk arises from future commercial transactions and recognised 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 group companies are required to hedge their entire foreign exchange risk exposure with the Group treasury.

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

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

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March 31, 2021

		March31,2021	March31,2021
(Foreign currency: functional currency) Financial assets Monetary items USD:NTD USD:RMB USD:KRW Non-monetary items USD:NTD Foreign operations USD:NTD Financial liabilities Monetary items USD:NTD USD:RMB USD:KRW (Foreign currency: functional currency) Financial assets Monetary items USD:NTD USD:RMB USD:KRW Non-monetary items USD:NTD Foreign operations USD:NTD Financial liabilities Monetary items USD:NTD USD:RMB USD:KRW	Foreign currency amount (in thousands) 1,948,988 $ 706 14,063 2,511 418,088 2,100,323 105,121 20,671	Exchange Book value rate (NTD) 28.510 55,565,648 $ 6.5715 20,128 1,212.4 400,936 28.510 71,593 28.510 11,911,050 28.510 59,880,209 6.5715 2,997,000 1,212.4 589,330 December31,2020		Sensitivity analysis
				Degree of variation 1% 1% 1% 1% 1% 1%	Effect on profit or loss
					555,656 $ 201 4,009 598,802 29,970 5,893
	Foreign currency amount (in thousands) 2,419,167 $ 534 15,112 15,612 411,874 2,643,970 91,026 11,715	Exchange rate 28.480 6.5351 1,093.2 28.480 28.480 28.480 6.5351 1,093.2	Book value (NTD) 68,897,876 $ 15,208 430,390 444,620 11,717,189 75,300,266 2,592,420 333,643	Sensitivity analysis
				Degree of variation 1% 1% 1% 1% 1% 1%	Effect on profit or loss
					688,979 $ 152 4,304 753,003 25,924 3,336

~64~

March 31, 2020

(Foreign currency: functional currency) Financial assets Monetary items USD:NTD USD:RMB USD:KRW Non-monetary items USD:NTD Foreign operations USD:NTD Financial liabilities Monetary items USD:NTD USD:RMB USD:KRW	Foreign currency amount (in thousands) 1,954,160 $ 645 14,900 8,899 371,273 2,055,664 66,452 28,111	Exchange rate 30.205 7.0937 1,212.4 30.205 30.205 30.205 7.0937 1,212.4	Book value (NTD) 59,025,403 $ 19,482 450,055 268,793 11,203,559 62,091,331 2,007,183 849,093	Sensitivity analysis	Sensitivity analysis
				Degree of variation 1% 1% 1% 1% 1% 1%	Effect on profit or loss
					590,254 $ 195 4,501 620,913 20,072 8,491

• v. The total exchange gain (loss), including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Group for the three-month periods ended March 31, 2021 and 2020 amounted to ($32,623) and ($89,886), respectively.

Price risk

• i. The Group’s equity securities, which are exposed to price risk, are the held 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. The Group’s investments in equity securities comprise shares, beneficiary certificates and bonds issued by the domestic and foreign companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, post-tax profit for the three-month periods ended March 31, 2021 and 2020 would have increased/decreased by $1,625 and $500, 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 $147,673 and $4,429, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

~65~

Cash flow and fair value interest rate risk

• i. The Group’s main interest rate risk arises from bank borrowings with variable rates and advance receipt of factoring accounts receivable, which expose the Group to cash flow interest rate risk. During the three-month periods ended March 31, 2021 and 2020, the Group’s borrowings at variable rate were mainly denominated in US Dollars.

• ii. The Group’s borrowings are measured at amortised cost. The borrowings are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.

• iii. If the borrowing interest rate had increased/decreased by 25 basis point with all other variables held constant, profit, net of tax for three-month periods ended March 31, 2021 and 2020 would have decreased/increased by $19,399 and $30,204, 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.

• ii. The Group manages its credit risk taking into consideration the entire group’s concern. For banks and financial institutions, only approved by FSC are accepted. According to the 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 in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

• iii. If the contract payments were past due over 90 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition. The default occurs when the contract payments are past due over 180 days.

• iv. The ageing analysis of accounts receivable (including overdue receivables) and notes receivable is as follows:

Notes and accounts receivable

Not past due Up to 90 days 91 to 180 days Over 180 days	March31,2021 56,724,176 $ 2,239,392 74,438 605,251 59,643,257 $	December31,2020 58,328,103 $ 2,622,629 15,279 589,626 61,555,637 $	March31,2020
			42,341,674 $ 4,206,620 271,864 1,160,405
			47,980,563 $

~66~

• (i) The above ageing analysis was based on days past due.

• (ii) Abovementioned notes receivable are not past due.

• v. The Group assesses the expected credit losses of its accounts receivable as follows:

• (i) Accounts receivable that are significantly past due are assessed individually for their expected credit losses;

• (ii) The remaining receivables are segmented according to the Group’s credit ratings of its customers. Different loss rates or provision matrices are applied to the different segments when estimating expected credit losses;

• (iii) Loss rates, calculated from historical and current information, are adjusted according to forward-looking information such as the business indicators published by the National Development Council.

• (iv) As of March 31, 2021, December 31, 2020 and March 31, 2020, loss allowances of accounts receivable and notes receivable calculated from individual assessment or using the loss rate methodology and provision matrix are as follows:

March31,2021 Expected loss rate Total book value Loss allowance December31,2020 Expected loss rate Total book value Loss allowance March 31, 2020 Expected loss rate Total book value Loss allowance	Individual 99.98% 582,087 $ 581,950 $ Individual 97.29% 590,297 $ 574,301 $ Individual 94.97% 1,185,074 $ 1,125,472 $	GroupA&B 0.03% 35,434,308 $ 10,631 $ GroupA&B 0.03% 39,190,397 $ 11,757 $ GroupA&B 0.03% 26,581,356 $ 7,974 $	Group C 0.08%~37.52% 21,661,082 $ 56,590 $ Group C 0.14%~49.58% 20,354,263 $ 71,481 $ Group C 0.07%~30.87% 18,749,683 $ 79,144 $	GroupD 0.55%~22.59% 1,965,780 $ 58,505 $ GroupD 3.37%~29.89% 1,420,680 $ 47,806 $ GroupD 2.2%~26.78% 1,464,450 $ 72,544 $	Total
					59,643,257 $ 707,676 $ Total 61,555,637 $ 705,345 $ Total
					47,980,563 $ 1,285,134 $

Group A: Customers with excellent credit rating

Group B: Customers with fine credit rating

Group C: Customers with normal credit rating Group D: Rated as other than A, B and C

• vi. Movements in relation to the Group applying the modified approach to provide loss allowance for accounts receivable (including overdue receivables) are as follows:

At January 1 Provision for impairment Effect of exchange rate changes ( At March 31	Three-monthperiods ended March31,	Three-monthperiods ended March31,
	2021 705,345 $ 2,936 605) 707,676 $	2020
		1,256,198 $ 25,217 3,719 1,285,134 $

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(c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group treasury. The Group treasury monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities (Note 6(16)) at all times so that the Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Group’s debt financing plans, covenant compliance, compliance with internally assessed financial ratio targets and, if applicable, external regulatory or legal requirements.

• ii. Surplus cash held by the operating entities over and above balance required for working capital management are transferred to the Group treasury. The Group treasury invests surplus cash in interest bearing current accounts, time deposits, money market deposits and marketable securities, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the abovementioned forecasts, and expects to readily generate cash inflows for managing liquidity risk.

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

Non-derivative financial liabilities:

March 31, 2021

March 31, 2021
Lease liability Long-term borrowings Bonds payable December 31, 2020 Lease liability Long-term borrowings Bonds payable March 31, 2020 Lease liability Bonds payable	Less than 1year 175,731 $ 400,000 - 575,731 $ 184,803 $ - 184,803 $ 165,642 $ - 165,642 $	Between 1 and 5 years 265,830 $ 400,000 382,600 1,048,430 $ 294,799 $ 800,000 384,100 1,478,899 $ 350,285 $ 1,114,700 1,464,985 $	Over 5 years 50,178 $ - - 50,178 $ 58,364 $ - 58,364 $ 87,211 $ - 87,211 $	Total
				491,739 $ 800,000 382,600
				1,674,339 $
				537,966 $ 800,000 384,100
				1,722,066 $
				603,138 $ 1,114,700
				1,717,838 $

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Except for the above, the Group’s non-derivative financial liabilities are due in one year.

Derivative financial liabilities

As of March 31, 2021, December 31, 2020 and March 31, 2020, all derivative financial liabilities of the Group are due in one year.

• iv. The Group does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

(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: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks, open-end funds and overseas bonds 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 or indirectly. The fair value of the Group’s investment in derivative instruments is included in level 2.

• Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity investment without active market is included in Level 3.

• B. Fair value information of investment property at cost is provided in Note 6(9).

• C. The carrying amounts of financial instruments not measured at fair value, including cash and cash equivalents, notes and accounts receivable, other receivables, other current assets, short-term borrowings, short-term notes and bills payable, accounts payable, other payables, corporate bonds payable and long-term borrowings, are approximate to their fair values.

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

• (a) The related information on the nature of the assets and liabilities is as follows:

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March 31, 2021 Level 1 Assets Financial assets at fair value through profit or loss Beneficiary certificates 47,795 $ Overseas bonds 318 Derivative instrument 7,630 Financial assets at fair value through other comprehensive income Equity securities 14,683,546 Accounts receivable that are expected to be factored - 14,739,289 $ Liabilities Financial liabilities at fair value through profit or loss Derivative instrument 7,559 $ Recurring fair value measurements Recurring fair value measurements December 31, 2020 Level 1 Assets Financial assets at fair value through profit or loss Beneficiary certificates 13,135 $ Overseas bonds 349 Financial assets at fair value through other comprehensive income Equity securities 15,115,709 Accounts receivable that are expected to be factored - 15,129,193 $ Recurring fair value measurements	Level 2 - $ - - - 18,216,846 18,216,846 $ - $ Level 2 - $ - - 14,288,166 14,288,166 $	Level3 114,466 $ - - 83,728 - 198,194 $ - $ Level3 114,697 $ - 83,683 - 198,380 $	Total
			162,261 $ 318 7,630 14,767,274 18,216,846
			33,154,329 $
			7,559 $
			Total
			127,832 $ 349 15,199,392 14,288,166
Financial assets at fair value through profit or loss Beneficiary certificates Overseas bonds Financial assets at fair value through other comprehensive income Equity securities Accounts receivable that are expected to be factored
			29,615,739 $

~70~

March 31, 2020 Level 1 Assets Financial assets at fair value through profit or loss Derivative instrument 51,185 $ Beneficiary certificates 50,000 Financial assets at fair value through other comprehensive income Equity securities 386,686 Accounts receivable that are expected to be factored - 437,871 $ Liabilities Financial liabilities at fair value through profit or loss Derivative instrument 10,333 $ Recurring fair value measurements Recurring fair value measurements	Level 2 - $ - - 14,474,090 14,474,090 $ - $	Level3 - $ - 56,168 - 56,168 $ - $	Total
			51,185 $ 50,000 442,854 14,474,090
			14,968,129 $
			10,333 $
Financial liabilities at fair value through profit or loss Derivative instrument

• (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 Open-end fund Corporate bonds Market quoted price Closing price Net assete value Weighted average quoted price

• ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.

• iii. When assessing non-standard and low-complexity financial instruments, for example, cross currency 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.

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• iv. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate.

• v. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Group’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

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

• E. For the three-month periods ended March 31, 2021 and 2020, there was no transfer between Level 1 and Level 2.

• F. The following chart is the movement of Level 3 for the three-month periods ended March 31, 2021 and 2020:

2021 and 2020:
		Equity	securities and	beneficiary certificates
			2021		2020
At January 1	$		198,380	$	55,983
Gains and losses recognised in profit or loss	(		261)		-
Effect of exchange rate changes			75		185
At March 31	$		198,194	$	56,168

For the three-month periods ended March 31, 2021 and 2020, there was no transfer into or out from Level 3.

~72~

• G. 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:

Non-derivative equity instrument: Unlisted shares Venture capital shares Private equity fund	Fair value at Significant Valuation unobservable technique input 5,963 $ Market comparable companies Price to earnings ratio multiple Discount for lack of marketability 28,510 Discounted cash flow method Weighted average cost of capital Discount for lack of control Discount for lack of marketability Long-term revenue growth rate 14,255 Most recent non- active market price Not applicable 35,000 Net asset value Not applicable 114,466 Most recent non- active market price Not applicable March 31, 2021	Range Relationship (weighted of inputs average) to fairvalue 1.32 ~2.69 (2.13) The higher the multiple and control premium, the higher the fair value 30% The higher the discount for lack of marketability, the lower the fair value 11.01% 37.38% 30% 35.28% ~66.66% - Not applicable - Not applicable - Not applicable The higher the weighted average cost of capital, discount for lack of control and discount for lack of marketability, the lower the fair value; the higher the long-term revenue growth rate, the higher the fair value

~73~

Non-derivative equity instrument: Unlisted shares Venture capital shares Private equity fund Non-derivative equity instrument: Unlisted shares	Fair value at Significant Valuation unobservable technique input 5,963 $ Market comparable companies Price to earnings ratio multiple Discount for lack of marketability 28,480 Discounted cash flow method Weighted average cost of capital Discount for lack of control Discount for lack of marketability Long-term revenue growth rate 14,240 Most recent non- active market price Not applicable 35,000 Net asset value Not applicable 114,697 Most recent non- active market price Not applicable Fair value at Significant Valuation unobservable technique input 56,168 $ Discounted cash flow method Weighted average cost of capital Discount for lack of control Discount for lack of marketability Long-term revenue growth rate March 31, 2020 December 31,2020	Range Relationship (weighted of inputs average) to fairvalue 1.32 ~2.69 (2.13) The higher the multiple and control premium, the higher the fair value 30% The higher the discount for lack of marketability, the lower the fair value 8.22% ~12.51% 10% 5%~8% 6.1% ~219.3% - Not applicable - Not applicable - Not applicable Range Relationship (weighted of inputs average) to fairvalue 8.22% ~12.51% 10% 5%~8% 6.1% ~219.3% The higher the weighted average cost of capital, discount for lack of control and discount for lack of marketability, the lower the fair value; the higher the long-term revenue growth rate, the higher the fair value The higher the weighted average cost of capital, discount for lack of control and discount for lack of marketability, the lower the fair value; the higher the long-term revenue growth rate, the higher the fair value

~74~

13. SUPPLEMENTARY DISCLOSURES

(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. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: Please refer to table 4.

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

• 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 5.

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

• I. Trading in derivative instruments undertaken during the reporting periods: Please refer to Note 6(2).

• J. Significant inter-company transactions during the reporting periods: Please refer to table 7.

(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 8.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to table 9.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to Note 13(1).

(4) Major shareholders information

Major shareholders information: Please refer to table 10.

14. SEGMENT INFORMATION

(1) General information

The Group is engaged in the development and sales of electronic and communication components. The chief operating decision maker considered the business and determined to separate segments from a perspective of sales region, which are mainly divided into Greater China, South Asia and North Asia. The Group has identified the Greater China shall be a reportable operating segment, and for other segments which have not met the quantitative threshold are not disclosed individually. The Group’s operating segment information is prepared in accordance with the Group’s accounting policies. The chief operating decision maker allocates resources and assesses performance of the operating segments primarily based on the operating revenue and profit (loss) before tax of individual operating segment.

~75~

(2) Financial information of reportable segment

The financial information on reportable segment provided to the chief operating decision maker is as follows:

s follows:
	GreaterChina Region
	Three-month periods ended March 31,
	2021	2020
Revenue from external customers	90,300,165 $	70,562,721 $
Segment income	1,755,978 $	752,355 $
Segment assets (Note)	- $	- $

Note: The chief operating decision maker does not use the measured amount of the assets as a measurement indicator; therefore, the measured amount of the Group’s assets shall be disclosed as zero.

(3) Reconciliation information on reportable segment revenue and profit (loss)

A reconciliation of reportable segment income or loss to the income / (loss) before tax from continuing operations is as follows:

continuing operations is as follows:
Operatingrevenue Total reported segment revenue Other operating segment revenue Total operating revenue Profit andloss Income of reported segment Income of other operating segments Income before income tax from continuing operations	Three-month periods ended March 31,
	2021 2020 90,300,165 $ 70,562,721 $ 7,346,213 6,912,938 97,646,378 $ 77,475,659 $ 2021 2020 1,755,978 $ 752,355 $ 142,183 33,325 1,898,161 $ 785,680 $ Three-monthperiods ended March31,	2020
		70,562,721 $ 6,912,938
		77,475,659 $
		752,355 $ 33,325
		785,680 $

~76~

WT Microelectronics Co., Ltd. and subsidiaries

Loans to others

Three-month period ended March 31, 2021

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

Number (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the period ended March 31,2021	Balance at March 31,2021	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	Reason for short-term financing	Allowance for doubtful accounts	Item Value Collateral	Item Value Collateral	Limit on loans granted to a singleparty	Ceiling on total loansgranted	Footnote
														Value
1 2 3 3 4 5			Other receivables - related parties Other receivables - related parties Other receivables - related parties Other receivables - related parties Other receivables - related parties Other receivables - related parties	Y Y Y Y Y Y	85,530 $ 199,570 107,882 741,260 282,249 79,828	85,530 $ 199,570 - 741,260 282,249 79,828	85,530 $ 199,570 - 641,475 282,249 79,828	0.75% 0.80% 0.80% 0.80% 1.30% 1.40%	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing	- $ - - - - -	Business Operation Business Operation Business Operation Business Operation Business Operation Business Operation	- $ - - - - -	- - - - - -	- $ - - - - -	104,946 $ 531,003 956,490 9,564,901 522,117 88,393	104,946 $ 531,003 3,825,960 9,564,901 522,117 88,393	Note 2 Note 2 Note 3 Note 2 Note 2 Note 2

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

(1) The Company is ‘0’.

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

Note 2: The policy for loans granted mutually between overseas subsidiaries of which the Company directly or indirectly holds 100% of their voting shares is as follows: ceiling on total loans granted by an overseas subsidiary to all overseas subsidiaries and limit

on loans granted by an overseas subsidiary to a single overseas subsidiary are the Creditor's net assets.

Note 3: The policy for loans between the Company and subsidiaries is as follows: limit on loans granted by subsidiary to a single party is 10% of the subsidiary’s net assets, based on the most recent audited financial statements of the company;

ceiling on total loans granted by an subsidiary is 40% of the subsidiary’s net assets.

Note 4: The policy for loans between the Company and subsidiaries and companies with short-term capital needs is as follows: limit on loans granted by the Company and subsidiaries to a single party is 30% of the company’s net assets, based on the most recent audited financial statements of the company; ceiling on total loans granted by an company is 40% of the company’s net assets.

Note 5: The net assets referred to above are based on the latest audited or reviewed financial statements.

Table 1, Page 1

WT Microelectronics Co., Ltd. and subsidiaries

Provision of endorsements and guarantees to others Three-month period ended March 31, 2021

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

Number (Note 1)	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements / guarantees provided for a singleparty (Note 3)	Maximum outstanding endorsement / guarantee amount as of March 31, 2021	Outstanding endorsement / guarantee amount at March 31, 2021	Actual amount drawn down	Amount of endorsements / guarantees secured with collateral	Ratio of accumulated endorsement/guarante e amount to net asset value of the endorser/guarantor company	Ceiling on total amount of endorsements / guarantees provided (Note 3)	Provision of endorsements / guarantees by parent company to subsidiary	Provision of endorsements / guarantees by subsidiary to parent company	N N N N N N N Y Y N N N N N Provision of endorsements / guarantees to the party in Mainland China	Footnote
		Companyname	Relationship with the endorser / guarantor (Note 2)
0 0 0 0 0 0 0 0 0 0 1 2 3 4	WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. TECHMOSA INTERNATIONAL INC. MORRIHAN INTERNATIONAL CORP. MAXTEK TECHNOLOGY CO., LTD. HONGTECH ELECTRONICS CO., LTD.	NUVISION TECHNOLOGY INC. HONGTECH ELECTRONICS CO., LTD. WT SOLOMON QCE LIMITED WT MICROELECTRONICS (HONG KONG) LIMITED WT TECHNOLOGY KOREA CO., LTD. WONCHANG SEMICONDUCTOR CO., LTD. MORRIHAN SINGAPORE PTE. LTD. WT MICROELECTRONICS (SHANGHAI) CO., LTD. WT MICROELECTRONICS (SHENZHEN) CO., LTD. MORRIHAN INTERNATIONAL CORP. TECHMOSA INTERNATIONAL INC. MORRIHAN INTERNATIONAL CORP. MAXTEK TECHNOLOGY CO., LTD. HONGTECH ELECTRONICS CO., LTD.	2 2 2 2 2 2 2 2 2 2 1 1 1 1	37,788,130 $ 37,788,130 37,788,130 37,788,130 37,788,130 37,788,130 37,788,130 37,788,130 37,788,130 37,788,130 1,193,968 3,450,163 1,600,622 274,457	800,000 $ 142,550 1,140,400 2,138,250 59,871 1,426 285,100 4,006,410 1,448,165 1,354,225 2,000 25,000 6,000 9,000	800,000 $ 142,550 1,140,400 2,138,250 59,871 1,426 285,100 4,005,067 1,438,499 1,354,225 1,000 25,000 2,000 9,000	800,000 $ 19,563 855,300 - 27,741 63 - 1,865,512 520,608 1,351,195 1,000 25,000 2,000 9,000	- - - - - - - - - - - - - -	1.69% 0.30% 2.41% 4.53% 0.13% 0.00% 0.60% 8.48% 3.05% 2.87% 0.07% 0.58% 0.10% 2.62%	37,788,130 $ 37,788,130 37,788,130 37,788,130 37,788,130 37,788,130 37,788,130 37,788,130 37,788,130 37,788,130 1,193,968 3,450,163 1,600,622 274,457	Y Y Y Y Y Y Y Y Y Y N N N N	N N N N N N N N N N N N N N		Note 4 Note 4 Note 4 Note 4

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

(1) The Company is ‘0’.

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

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following three categories:

• (1) Having business relationship.

(2) The endorser/guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.

• (3) The endorser/guarantor parent company owns directly and indirectly more than 90% voting shares of the endorsed/guaranteed company.

Note 3: The total endorsements and guarantees of the Company to others or mutually between subsidiaries should not be in excess of 80% of the endorser/ guarantor’s net assets, and for a single party the Company and its subsidiaries hold more than 50% of common shares should not be in excess of 80% of the Company’s net assets. The net assets referred to above are based on the latest audited or reviewed financial statements. Note 4: The Company's subsidiaries' guarantee for customs duties to itself.

Table 2, Page 1

WT Microelectronics Co., Ltd. and subsidiaries

Holding of marketable securities (not including subsidiaries, associates and joint ventures) Three-month period ended March 31, 2021

Table 3

Expressed in thousands of NTD

(Except as otherwise indicated)

Securities held by	Type of securities	Name of securities	Relationship with the securities issuer	General ledger account(Note 1)		As of March 31,2020	As of March 31,2020		Footnote
					Number of shares	Book value	Ownership (%)	Fair value
WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WINTECH MICROELECTRONICS HOLDING LTD. WINTECH MICROELECTRONICS HOLDING LTD. WINTECH MICROELECTRONICS HOLDING LTD. WINTECH MICROELECTRONICS HOLDING LTD. MILESTONE INVESTMENT CO.,LTD. MAXTEK TECHNOLOGY CO., LTD.	Common stock Common stock Common stock Common stock Common stock Common stock Limited Partnership Funds Funds Private equity Preferred shares Common stock Bonds Private equity Common stock Common stock	TERAWINS, INC. AIPTEK INTERNATIONAL INC. SANJET TECHNOLOGY CORP. CORERIVER SEMICONDUCTOR CO., LTD. ASMEDIA TECHNOLOGY INC. SINO-AMERICAN SILICON PRODUCTS INC. FORYOU VENTURE CAPITAL LIMITED PARTNERSHIP YUANTA GLOBAL NEXGEN COMMUNICATION INNOVATIVE TCHNOLOGY ETF FUH HWA TAIWAN GOOD INCOME FUND TWD FUH HWA ENERGY - EFFICIENT FUND LIFEMAX HEALTHCARE INTERNATIONAL CORPORATION AVIVA TECHNOLOGY HOLDING EXXON MOBIL CORPORATION CATHAY PRIVATE EQUITY ECOLOGY LIMITED PARTNERSHIP GRAND FORTUNE SECURITIES CO., LTD. FITIPOWER INTEGRATED TECHNOLOGY INC.	None None None None None None None None None None None None None None None None	2 2 2 2 2 2 2 3 4 4 2 2 4 4 2 2	666,248 309,929 43,588 28,570 9,000,000 5,311,000 - 500,000 3,000,000 8,700,000 2,702,703 - 100 - 5,637,500 1,010,505	5,963 $ - - - 13,410,000 897,559 35,000 14,435 33,360 85,956 28,510 14,255 318 28,510 85,972 290,015	2.19 0.24 0.14 0.73 13.00 0.91 9.62 - - 24.79 0.79 - - - 2.27 0.61	5,963 $ - - - 13,410,000 897,559 35,000 14,435 33,360 85,956 28,510 14,255 318 28,510 85,972 290,015

Note 1 : Code of general ledger accounts: 1- Financial assets at fair value through other comprehensive income - current

Note 1 : Code of general ledger accounts: 2- Financial assets at fair value through other comprehensive income - non-current

Note 1 : Code of general ledger accounts: 3- Financial assets at fair value through profit or loss - current Note 1 : Code of general ledger accounts: 4- Financial assets at fair value through profit or loss - non-current

Table 3, Page 1

WT Microelectronics Co., Ltd. and subsidiaries

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

Three-month period ended March 31, 2021

Investor Table 4	Marketable securities	General ledgeraccount	Counterparty	Relationship with the counterparty	Balance as at January1,2021(Note1)	Balance as at January1,2021(Note1)	Addition	Addition		Disposal	Disposal		Balance as atMarch31,2021(Note2) Expressed in thousands of NTD (Except as otherwise indicated)	Balance as atMarch31,2021(Note2) Expressed in thousands of NTD (Except as otherwise indicated)
					No. ofshares	Amount	No. ofshares	Amount	No. ofshares	Selling price	Bookvalue	Gain (loss) ondisposal	No. ofshares	Amount
WT MICROELECTRONICS CO., LTD. MAXTEK TECHNOLOGY CO., LTD. HONGTECH ELECTRONICS CO., LTD. WINTECH MICROELECTRONICS HOLDING LTD.	SINO-AMERICAN SILICON PRODUCTS INC. FITIPOWER INTEGRATED TECHNOLOGY INC. FITIPOWER INTEGRATED TECHNOLOGY INC. AMBARELLA INC.	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - current	- - - -	- - - -	403,000 2,967,505 759,652 142,664	$ 65,729 10,179 2,606 9,997	4,908,000 - - -	$ 796,302 - - -	- 1,957,000 759,652 142,664	$ - 292,995 102,553 429,425	$ - 6,713 2,606 9,997	$ - 286,282 99,947 419,428	5,311,000 1,010,505 - -	$ 897,559 290,015 - -

Note 1 : The balance as at January 1, 2021 and addition amount are presented in initial investment amount.

Note 2 : The balance as at March 31, 2021 includes the unrealised gain (loss) from financial assets measured at fair value.

Table 4, Page 1

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more

Table 5

Expressed in thousands of NTD (Except as otherwise indicated)

WT Microelectronics Co., Ltd. and subsidiaries

Three-month period ended March 31, 2021

Differences in transaction terms compared to third

Purchaser/seller	Counterparty	Relationship with the counterparty		Transaction	Transaction		party transactions		Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote
			Purchases (sales) Sales Sales Sales Sales Sales Sales Sales Sales Sales Purchases Purchases Purchases Purchases Sales	Amount 17,778,897 $ 7,582,876 2,856,194 2,828,581 2,690,877 1,190,766 639,867 228,325 118,509 1,912,781 1,160,413 275,666 128,957 929,740	Percentage of total purchases (sales)	Credit term	Unitprice Based on product, market price of inventory cost and other trading conditions Based on product, market price of inventory cost and other trading conditions Based on product, market price of inventory cost and other trading conditions Based on product, market price of inventory cost and other trading conditions Based on product, market price of inventory cost and other trading conditions Based on product, market price of inventory cost and other trading conditions Based on product, market price of inventory cost and other trading conditions Based on product, market price of inventory cost and other trading conditions Based on product, market price of inventory cost and other trading conditions Based on product, market price of inventory cost and other trading conditions Based on product, market price of inventory cost and other trading conditions Based on product, market price of inventory cost and other trading conditions Based on product, market price of inventory cost and other trading conditions Based on product, market price of inventory cost and other trading conditions	Credit term	Balance 7,032,548 $ 2,800,667 1,477,251 1,298,091 1,819,601 535,483 255,308 120,649 68,143 - 402,858) ( 140,313) ( - 633,275	Percentage of total notes/accounts receivable (payable)
WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. NUVISION TECHNOLOGY INC.	MORRIHAN INTERNATIONAL CORP. WT MICROELECTRONICS (HONG KONG) LIMITED WINTECH MICROELECTRONICS LTD. WT SOLOMON QCE LIMITED WT TECHNOLOGY PTE. LTD. WT MICROELECTRONICS SINGAPORE PTE. LTD. WT TECHNOLOGY KOREA CO., LTD. MAXTEK TECHNOLOGY CO., LTD. WONCHANG SEMICONDUCTOR CO., LTD. MORRIHAN INTERNATIONAL CORP. NUVISION TECHNOLOGY INC. TECHMOSA INTERNATIONAL INC. MAXTEK TECHNOLOGY CO., LTD. WT TECHNOLOGY PTE. LTD.	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates			23 10 4 4 4 2 1 - - 2 1 - - 19	Closes its accounts 90 days after the end of each month Closes its accounts 90 days after the end of each month Closes its accounts 90 days after the end of each month Closes its accounts 90 days after the end of each month Closes its accounts 90 days after the end of each month Closes its accounts 90 days after the end of each month Closes its accounts 90 days after the end of each month Closes its accounts 90 days after the end of each month Closes its accounts 90 days after the end of each month Closes its accounts 90 days after the end of each month Closes its accounts 90 days after the end of each month Closes its accounts 90 days after the end of each month Closes its accounts 90 days after the end of each month Closes its accounts 90 days after the end of each month		No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference		20 8 4 4 5 2 1 - - - 1 - - 17

Table 5, Page 1

Differences in transaction terms compared to third party transactions

Transaction

Notes/accounts receivable (payable)

Purchaser/seller	Counterparty	Relationship with the counterparty	Purchases (sales) Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales Sales	Amount 748,159 $ 504,265 3,684,717 369,322 222,303 211,489 189,122 171,168 233,986 512,774 2,378,989 806,199	Percentage of total purchases (sales)	Credit term Unitprice Closes its accounts 90 days after the end of each month Based on product, market price of inventory cost and other trading conditions Closes its accounts 90 days after the end of each month Based on product, market price of inventory cost and other trading conditions Closes its accounts 90 days after the end of each month Based on product, market price of inventory cost and other trading conditions Closes its accounts 90 days after the end of each month Based on product, market price of inventory cost and other trading conditions Closes its accounts 90 days after the end of each month Based on product, market price of inventory cost and other trading conditions Closes its accounts 90 days after the end of each month Based on product, market price of inventory cost and other trading conditions Closes its accounts 90 days after the end of each month Based on product, market price of inventory cost and other trading conditions Closes its accounts 90 days after the end of each month Based on product, market price of inventory cost and other trading conditions Closes its accounts 90 days after the end of each month Based on product, market price of inventory cost and other trading conditions Closes its accounts 90 days after the end of each month Based on product, market price of inventory cost and other trading conditions Closes its accounts 90 days after the end of each month Based on product, market price of inventory cost and other trading conditions Closes its accounts 90 days after the end of each month Based on product, market price of inventory cost and other trading conditions	Credit term No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference No material difference	Balance 908,441 $ 678,017 2,361,154 597,195 219,813 274,587 218,437 264,317 309,287 181,865 2,208,973 740,651	Percentage of total notes/accounts receivable (payable)	Footnote
NUVISION TECHNOLOGY INC. NUVISION TECHNOLOGY INC. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. TECHMOSA INTERNATIONAL INC. HONGTECH ELECTRONICS CO., LTD. WINTECH MICROELECTRONICS LTD. WINTECH MICROELECTRONICS LTD.	WT MICROELECTRONICS (HONG KONG) LIMITED WT SOLOMON QCE LIMITED MORRIHAN SINGAPORE PTE. LTD. WT MICROELECTRONICS (HONG KONG) LIMITED ANALOG WORLD CO., LTD. WT SOLOMON QCE LIMITED WT TECHNOLOGY PTE. LTD. WINTECH MICROELECTRONICS LTD. WT MICROELECTRONICS (HONG KONG) LIMITED MAXTEK TECHNOLOGY CO., LTD. WT MICROELECTRONICS (SHANGHAI) CO., LTD. WT MICROELECTRONICS (SHENZHEN) CO., LTD.	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates			15 10 11 1 1 1 1 1 14 41 75 25				25 19 18 4 2 2 2 2 21 20 75 25

Table 5, Page 2

WT Microelectronics Co., Ltd. and subsidiaries

Table 6

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

March 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	7,032,548 $ 2,800,667 1,477,251 1,298,091 1,819,601 535,483 255,308 120,649 908,441 678,017 633,275 402,858 2,361,154 597,195 274,587 264,317 219,813 218,437 309,287 Balance as at March 31,2021	2.79 7.31 4.39 6.37 1.59 2.73 16.36 94.69 1.76 1.73 4.17 4.86 3.72 1.45 2.38 1.89 3.37 2.77 1.61 Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount - $ - - - - - - - - - - - - - - - - - -	Action taken
WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. NUVISION TECHNOLOGY INC. NUVISION TECHNOLOGY INC. NUVISION TECHNOLOGY INC. NUVISION TECHNOLOGY INC. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. TECHMOSA INTERNATIONAL INC.	MORRIHAN INTERNATIONAL CORP. WT MICROELECTRONICS (HONG KONG) LIMITED WINTECH MICROELECTRONICS LTD. WT SOLOMON QCE LIMITED WT TECHNOLOGY PTE. LTD. WT MICROELECTRONICS SINGAPORE PTE. LTD. WT TECHNOLOGY KOREA CO., LTD. MAXTEK TECHNOLOGY CO., LTD. WT MICROELECTRONICS (HONG KONG) LIMITED WT SOLOMON QCE LIMITED WT TECHNOLOGY PTE. LTD. WT MICROELECTRONICS CO., LTD. MORRIHAN SINGAPORE PTE. LTD. WT MICROELECTRONICS (HONG KONG) LIMITED WT SOLOMON QCE LIMITED WINTECH MICROELECTRONICS LTD. ANALOG WORLD CO., LTD. WT TECHNOLOGY PTE. LTD. WT MICROELECTRONICS (HONG KONG) LIMITED	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates					- $ - - - - - - - - - - - - - 4,969 - - - -	- $ - - - - - - - - - - - - - - - - - -

Table 6, Page 1

Creditor	Counterparty	Relationship with the counterparty	Balance as at March 31,2021 140,313 $ 181,865 2,208,973 740,651	Turnover rate 8.76 36.57 2.47 2.04	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount - $ - - -	Action taken
TECHMOSA INTERNATIONAL INC. HONGTECH ELECTRONICS CO., LTD. WINTECH MICROELECTRONICS LTD. WINTECH MICROELECTRONICS LTD.	WT MICROELECTRONICS CO., LTD. MAXTEK TECHNOLOGY CO., LTD. WT MICROELECTRONICS (SHANGHAI) CO., LTD. WT MICROELECTRONICS (SHENZHEN) CO., LTD.	Affiliates Affiliates Affiliates Affiliates					- $ 137,061 217,628 189,237	- $ - - -

Note: For information on loans between the Company and subsidiaries, please refer to table 1.

Table 6, Page 2

WT Microelectronics Co., Ltd. and subsidiaries

Significant inter-company transactions during the reporting period

Table 7

Expressed in thousands of NTD (Except as otherwise indicated)

Three-month period ended March 31, 2021

Number (Note1)	Companyname	Counterparty	Relationship (Note2)		Transaction(Note4)	Transaction(Note4)
				General ledgeraccount	Amount	Transaction terms	Percentage of total operating revenues or totalassets (Note 5)
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 2 2 2	WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. NUVISION TECHNOLOGY INC. NUVISION TECHNOLOGY INC. NUVISION TECHNOLOGY INC. NUVISION TECHNOLOGY INC. NUVISION TECHNOLOGY INC. NUVISION TECHNOLOGY INC. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP.	MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. WT MICROELECTRONICS (HONG KONG) LIMITED WT MICROELECTRONICS (HONG KONG) LIMITED WINTECH MICROELECTRONICS LTD. WINTECH MICROELECTRONICS LTD. WT SOLOMON QCE LIMITED WT SOLOMON QCE LIMITED WT TECHNOLOGY PTE. LTD. WT TECHNOLOGY PTE. LTD. WT MICROELECTRONICS SINGAPORE PTE. LTD. WT MICROELECTRONICS SINGAPORE PTE. LTD. WT TECHNOLOGY KOREA CO., LTD. WT TECHNOLOGY KOREA CO., LTD. MAXTEK TECHNOLOGY CO., LTD. MAXTEK TECHNOLOGY CO., LTD. WONCHANG SEMICONDUCTOR CO., LTD. MORRIHAN INTERNATIONAL CORP. NUVISION TECHNOLOGY INC. NUVISION TECHNOLOGY INC. TECHMOSA INTERNATIONAL INC. TECHMOSA INTERNATIONAL INC. MAXTEK TECHNOLOGY CO., LTD. WT TECHNOLOGY PTE. LTD. WT TECHNOLOGY PTE. LTD. WT MICROELECTRONICS (HONG KONG) LIMITED WT MICROELECTRONICS (HONG KONG) LIMITED WT SOLOMON QCE LIMITED WT SOLOMON QCE LIMITED MORRIHAN SINGAPORE PTE. LTD. MORRIHAN SINGAPORE PTE. LTD. WT MICROELECTRONICS (HONG KONG) LIMITED WT MICROELECTRONICS (HONG KONG) LIMITED ANALOG WORLD CO., LTD. ANALOG WORLD CO., LTD. WT SOLOMON QCE LIMITED WT SOLOMON QCE LIMITED WT TECHNOLOGY PTE. LTD. WT TECHNOLOGY PTE. LTD. WINTECH MICROELECTRONICS LTD. WINTECH MICROELECTRONICS LTD.	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates	Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Purchases Purchases Accounts payable Purchases Accounts payable Purchases Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable	17,778,897 $ 7,032,548 7,582,876 2,800,667 2,856,194 1,477,251 2,828,581 1,298,091 2,690,877 1,819,601 1,190,766 535,483 639,867 255,308 228,325 120,649 118,509 1,912,781 1,160,413 402,858 275,666 140,313 128,957 929,740 633,275 748,159 908,441 504,265 678,017 3,684,717 2,361,154 369,322 597,195 222,303 219,813 211,489 274,587 189,122 218,437 171,168 264,317	(Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3)	18 5 8 2 3 1 3 1 3 1 1 - 1 - - - - 2 1 - - - - 1 - 1 1 1 1 4 2 - - - - - - - - - -

Table 7, Page 1

Number (Note1)	Companyname	Counterparty	Relationship (Note2)		Transaction(Note4)	Transaction(Note4)
				General ledgeraccount	Amount	Transaction terms	Percentage of total operating revenues or totalassets (Note 5)
3 3 4 4 5 5 5 5	TECHMOSA INTERNATIONAL INC. TECHMOSA INTERNATIONAL INC. HONGTECH ELECTRONICS CO., LTD. HONGTECH ELECTRONICS CO., LTD. WINTECH MICROELECTRONICS LTD. WINTECH MICROELECTRONICS LTD. WINTECH MICROELECTRONICS LTD. WINTECH MICROELECTRONICS LTD.	WT MICROELECTRONICS (HONG KONG) LIMITED WT MICROELECTRONICS (HONG KONG) LIMITED MAXTEK TECHNOLOGY CO., LTD. MAXTEK TECHNOLOGY CO., LTD. WT MICROELECTRONICS (SHANGHAI) CO., LTD. WT MICROELECTRONICS (SHANGHAI) CO., LTD. WT MICROELECTRONICS (SHENZHEN) CO., LTD. WT MICROELECTRONICS (SHENZHEN) CO., LTD.	Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates Affiliates	Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable	233,986 $ 309,287 512,774 181,865 2,378,989 2,208,973 806,199 740,651	(Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3) (Note 3)	- - 1 - 2 2 1 1

• Note 1: The information of transactions between the Company and the consolidated subsidiaries should be noted in “Number” column.

• (1) Number 0 represents the Company.

• (2) The consolidated subsidiaries are numbered in order from number 1. Note 2: The transaction relationships with the counterparties are as follows:

• (1) The Company to the consolidated subsidiary.

• (2) The consolidated subsidiary to the Company.

(3) The consolidated subsidiary to another consolidated subsidiary. Note 3: The prices and terms to related parties were similar to third parties. The credit term is 90 days after the end of each month. Note 4: For sales, purchases and account receivables, transactions reaching NT$100 million or 20% of paid-in capital or more should be disclosed. Note 5: In calculating the ratio, the transaction amount is divided by consolidated total assets for balance sheet accounts and is divided by consolidated total revenues for income statement accounts. Note 6: Information of loans between the Company and subsidiaries, please refer to table 1.

Table 7, Page 2

WT Microelectronics Co., Ltd. and subsidiaries

Table 8

Names, locations and other information of investee companies (not including investees in Mainland China)

Three-month period ended March 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Balance at March 31,2021 Balance at December 31, 2020 Initial investment amount	Balance at March 31,2021 Balance at December 31, 2020 Initial investment amount	Shares held as at March	Shares held as at March	31,2021	Net profit (loss) of the investee for the three-month period ended March 31, 2021	Investment income (loss) recognised by the Company for the three- month period ended March 31,2021	Footnote
						Number of shares	Ownership (%)	Book value
WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS CO., LTD. WINTECH MICROELECTRONICS HOLDING LIMITED WINTECH MICROELECTRONICS HOLDING LIMITED WINTECH MICROELECTRONICS HOLDING LIMITED	WINTECH MICROELECTRONICS HOLDING LIMITED TECHMOSA INTERNATIONAL INC. MORRIHAN INTERNATIONAL CORP. BSI SEMICONDUCTOR PTE. LTD. NUVISION TECHNOLOGY INC. MILESTONE INVESTMENT CO., LTD. SINYIE INVESTMENT CO., LTD. MSD HOLDINGS PTE. LTD. MAXTEK TECHNOLOGY CO., LTD. ANALOG WORLD CO., LTD. PROMISING INVESTMENT LIMITED WINTECH INVESTMENT CO., LTD. WINTECH MICROELECTRONICS LTD.	British Virgin Islands Taiwan Taiwan Singapore Taiwan Taiwan Taiwan Singapore Taiwan South Korea Mauritius Belize Belize	Holding company Sale of electronic components Sale of electronic components Sale of electronic components Sale of electronic components General investment General investment Sale of electronic components Sale of electronic components Sale of electronic components General investment General investment Sale of electronic components	3,644,147 $ 1,781,829 3,106,620 486,289 323,030 61,985 52,000 215,559 1,895,949 397,230 1,777,100 599,307 85,533	3,644,147 $ 1,781,829 3,106,620 486,289 323,030 61,985 52,000 215,559 1,895,949 397,230 1,777,100 599,307 85,533	115,323,691 73,949,070 283,760,000 7,544,002 28,216,904 4,500,000 2,900,000 200,001 70,220,331 120,000 62,332,506 21,020,957 3,000,100	99.65 100.00 100.00 100.00 99.91 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00	9,520,176 $ 2,061,703 4,312,646 734,499 1,054,731 107,180 44,818 209,783 2,247,080 409,523 3,969,726 1,086,699 57,883	106,947 $ 115,186 336,645 986 120,628 - - 1,613 30,532 9,359 116,212 13,608 1,306) (	106,947 $ 115,186 336,645 986 120,519 - - 1,613 30,532 8,484 Note 1 Note 1 Note 1	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

Table 8, Page 1

Investor	Investee	Location	Main business activities	Balance at March 31,2021 Balance at December 31, 2020 Initial investment amount	Balance at March 31,2021 Balance at December 31, 2020 Initial investment amount	Shares held as at March	Shares held as at March	31,2021	Net profit (loss) of the investee for the three-month period ended March 31, 2021	Investment income (loss) recognised by the Company for the three- month period ended March 31,2021	Footnote
						Number of shares	Ownership (%)	Book value
WINTECH MICROELECTRONICS HOLDING LIMITED WINTECH MICROELECTRONICS HOLDING LIMITED WINTECH MICROELECTRONICS HOLDING LIMITED WINTECH MICROELECTRONICS HOLDING LIMITED WINTECH MICROELECTRONICS HOLDING LIMITED WINTECH MICROELECTRONICS HOLDING LIMITED WINTECH MICROELECTRONICS HOLDING LIMITED WINTECH MICROELECTRONICS HOLDING LIMITED PROMISING INVESTMENT LIMITED PROMISING INVESTMENT LIMITED PROMISING INVESTMENT LIMITED PROMISING INVESTMENT LIMITED PROMISING INVESTMENT LIMITED WINTECH INVESTMENT CO., LTD.	WINTECH MICROELECTRONICS LIMITED WT TECHNOLOGY PTE. LTD. JCD OPTICAL (CAYMAN) CO., LTD. ANIUS ENTERPRISE CO., LTD. MEGA SOURCE CO., LTD. JOY CAPITAL LTD. RAINBOW STAR GROUP LIMITED BRILLNICS INC. WT MICROELECTRONICS (HONG KONG) LIMITED NINO CAPITAL CO., LTD. RICH WEB LTD. WT TECHNOLOGY (H.K.) LIMITED WT SOLOMON QCE LIMITED WT MICROELECTRONICS SINGAPORE PTE. LTD.	British Virgin Islands Singapore Cayman Islands Seychelles Seychelles Seychelles British Virgin Islands Cayman Islands Hong Kong Samoa British Virgin Islands Hong Kong Hong Kong Singapore	Holding company Sale of electronic components Holding company Sale of electronic components Sale of electronic components General investment General investment Sale of electronic components Sale of electronic components Holding company Holding company Sale of electronic components Sale of electronic components Sale of electronic components	143 $ 142,550 67,680 - - 34,212 28,510 815,728 357,163 8,867 655,001 3,667 757,404 31,725	143 $ 142,550 67,680 - - 34,212 28,510 815,728 357,163 8,867 655,001 3,667 757,404 31,725	5,000 5,000,000 5,869,093 1 1 1,200,000 18,924 32,083,666 12,527,632 311,000 22,974,430 1,000,000 110,000,000 1,500,000	100.00 100.00 23.07 100.00 100.00 17.65 24.65 54.15 100.00 100.00 100.00 100.00 100.00 100.00	5 $ 2,027,989 36,261 - - 21,610 27,826 28,459 2,193,995 30,824 775,130 105,340 864,435 266,434	- $ 84 5,700) ( - - 3,291) ( 573) ( 31,584) ( 113,672 3,686) ( 4,925 281 1,020 7,621	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	Subsidiary Subsidiary Associates Subsidiary Subsidiary Associates Associates Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

Table 8, Page 2

Investor	Investee	Location	Main business activities	Balance at March 31,2021 Balance at December 31, 2020 Initial investment amount	Balance at March 31,2021 Balance at December 31, 2020 Initial investment amount	Shares held as at March	Shares held as at March	31,2021	Net profit (loss) of the investee for the three-month period ended March 31, 2021	Investment income (loss) recognised by the Company for the three- month period ended March 31,2021	Footnote
						Number of shares	Ownership (%)	Book value
WINTECH INVESTMENT CO., LTD. WINTECH INVESTMENT CO., LTD. WT MICROELECTRONICS SINGAPORE PTE. LTD. WT MICROELECTRONICS SINGAPORE PTE. LTD. SINYIE INVESTMENT CO., LTD. MORRIHAN INTERNATIONAL CORP. MORRIHAN INTERNATIONAL CORP. BSI SEMICONDUCTOR PTE. LTD. BSI SEMICONDUCTOR PTE. LTD. TECHMOSA INTERNATIONAL INC. TECHMOSA INTERNATIONAL INC. MAXTEK TECHNOLOGY CO., LTD. MAXTEK TECHNOLOGY CO., LTD. MAXTEK TECHNOLOGY CO., LTD. MAXTEK TECHNOLOGY CO., LTD. BEST WINNER INTERNATIONAL DEVELOPMENT LTD. BEST WINNER INTERNATIONAL DEVELOPMENT LTD.	WT MICROELECTRONICS (MALAYSIA) SDN. BHD. WT TECHNOLOGY KOREA CO., LTD. WT MICROELECTRONICS (THAILAND) LIMITED. WT MICROELECTRONICS INDIA PRIVATE LIMITED WINTECH MICROELECTRONICS HOLDING LIMITED HOTECH ELECTRONICS CORP. ASIA LATEST TECHNOLOGY LIMITED WT TECHNOLOGY KOREA CO., LTD. WONCHANG SEMICONDUCTOR CO., LTD. MORRIHAN SINGAPORE PTE. LTD. TECHMOSA INTERNATIONAL HOLDING LTD. HONGTECH ELECTRONICS CO., LTD. LACEWOOD INTERNATIONAL CORP. BEST WINNER INTERNATIONAL DEVELOPMENT LTD. QWAVE TECHNOLOGY CO., LTD. MAXTEK INTERNATIONAL (HK) LIMITED BRILLNICS (HK) LIMITED	Malaysia South Korea Thailand India British Virgin Islands Taiwan Mauritius South Korea South Korea Singapore Anguilla Taiwan British Virgin Islands British Virgin Islands Taiwan Hong Kong Hong Kong	Sale of electronic components Sale of electronic components Sale of electronic components Sale of electronic components Holding company Sale of electronic components Holding company Sale of electronic components Sale of electronic components Sale of electronic components Holding company Sale of electronic components Sale of electronic components Holding company Sale of electronic components, IC design Sale of electronic components Sale and services of technology	3,444 $ 519,079 2,742 2,800 69,042 - 37,771 49,451 22,360 210,451 - 115,000 194,366 5,701 40,000 22,002 1,511,401	3,444 $ 519,079 2,742 2,800 69,042 14,770 37,771 49,451 22,360 210,451 - 115,000 194,366 5,701 40,000 22,002 1,511,401	500,000 3,800,000 300,000 700,000 407,469 - 1,120,000 180,472 53,505 9,500,000 1 11,500,000 29,500 6,000 4,000,000 6,000,000 53,013,000	100.00 95.47 100.00 100.00 0.35 - 100.00 4.53 100.00 100.00 100.00 100.00 100.00 100.00 40.00 100.00 100.00	2,877 $ 816,727 1,999 2,644 46,882 - 44,021 26,585 200,331 384,172 29 378,164 542,715 19,250 35,704 16,966 69,224	83 $ 4,990 13 1,313) ( 106,947 - 66) ( 4,990 1,087 39,029 - 25,977 11,096 26) ( 1,142 26) ( 30,072) (	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Associates Subsidiary Subsidiary

Table 8, Page 3

Investor	Investee	Location	Main business activities	Balance at March 31,2021 Balance at December 31, 2020 Initial investment amount	Balance at March 31,2021 Balance at December 31, 2020 Initial investment amount	Shares held as at March	Shares held as at March	31,2021	Net profit (loss) of the investee for the three-month period ended March 31, 2021	Investment income (loss) recognised by the Company for the three- month period ended March 31,2021	Footnote
						Number of shares	Ownership (%)	Book value
BRILLNICS INC. BRILLNICS (HK) LIMITED BRILLNICS (HK) LIMITED	BRILLNICS SINGAPORE PTE. LTD. BRILLNICS JAPAN INC. BRILLNICS (TAIWAN) INC.	Singapore Japan Taiwan	Sale of electronic components Research and development of electronic components Research and development of electronic components	- $ 25,859 11,937	- $ 25,859 11,937	2 100,000 1,193,710	100.00 100.00 100.00	- $ - -	320) ($ 68,350) ( 34,944) (	Note 1 Note 1 Note 1	Subsidiary Subsidiary Subsidiary

Note 1: Profit (loss) of investee has been included in the investor, and will not be disclosed separately.

Table 8, Page 4

WT Microelectronics Co., Ltd. and subsidiaries

Information on investments in Mainland China

Table 9

Three-month period ended March 31, 2021

Expressed in thousands of NTD

(Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2021	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the three-month period ended March 31,2021	Amount remitted from Taiwan to Mainland China/ Amount remitted back to Taiwan for the three-month period ended March 31,2021	Accumulated amount of remittance from Taiwan to Mainland China as of March 31,2021	Net income of investee for the three-month period ended March 31, 2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the three-month period ended March 31, 2021(Note 2)	Book value of investment in Mainland China as of March 31,2021	Accumulated amount of investment income remitted back to Taiwan as of March 31,2021	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
SHANGHAI WT MICROELECTRONICS CO., LTD. WT MICROELECTRONICS (SHENZHEN) CO., LTD. WT MICROELECTRONICS (SHANGHAI) CO., LTD. MORRIHAN INTERNATIONAL TRADING (SHANGHAI) CO., LTD. JCD OPTICAL CORPORATION Companyname	International trade, entrepot trade and etc. International trade, entrepot trade and etc. International trade, entrepot trade and etc. International trade, entrepot trade and etc. Production and sale of optoelectronic material and components Accumulated amount of remittance from Taiwan to Mainland China as of March 31,2021	8,553 $ 2 652,726 2 1,002,127 2 37,918 3 145,401 2 Investment amount approved by the Investment Commission of the Ministry of Economic Affairs(MOEA)		8,553 $ - $ 599,536 - 545,967 - 28,510 - 18,931 - Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA		- $ - - - -	8,553 $ 599,536 545,967 28,510 18,931	3,685) ($ 4,926 1,061) ( 66) ( 3,161) (	100.00 100.00 100.00 100.00 23.07	3,685) ($ 4,926 1,061) ( 66) ( 729) (	30,751 $ 775,030 1,215,026 44,013 32,937	- $ - - - -	Note 5 Note 6 Note 7 Note 4 Note 8
WT MICROELECTRONICS CO., LTD.	$ 1,201,497	$ 1,880,520		28,356,169 $

Note 1: The investment methods are classified into the following three categories:

(1) Directly investing in Mainland China.

(2) Through investing in companies in the third area, which then invested in the investee in Mainland China.

(3) Others.

Note 2: Investment gains or losses were recognised based on reviewed financial statements.

Note 3: The amount disclosed was 60% of net assets and based on Investment Commission, MOEA Regulation No. 09704604680 announced on August 29, 2008. Note 4: This is a China subsidiary which was reinvested through the company in the third area when Morrihan International Corp. was acquired in September 2009. Note 5: This is a China company which was invested through the company, NINO CAPITAL CO., LTD., in the third area.

Note 6: This is a China company which was invested through the company, RICH WEB LTD., in the third area.

Note 7: This is a China company which was reinvested through the company, WINTECH MICROELECTRONICS HOLDING LIMITED, in the third area. Note 8: This is a China company which was reinvested through the company, JCD OPTICAL (CAYMAN) CO., LTD., in the third area.

Table 9, Page 1

WT Microelectronics Co., Ltd. and subsidiaries Major shareholders information March 31, 2021

Table 10

Name of majorshareholders	Shares	Shares
	Name ofsharesheld	Ownership (%)
WPG HOLDING CO., LTD. ASMEDIA TECHNOLOGY INC. SHAO YANG INVESTMENT CO., LTD.	201,393,867 179,000,000 74,739,426	21.74% 19.32% 8.06%

• Note 1: 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 Taiwan Depository & Clearing Corporation. The share capital which was recorded in the financial statements may differ from the actual number of shares issued in dematerialised form because of a different calculation basis.

• Note 2: If the aforementioned data contains shares which were held in trust by the shareholders, the data disclosed is the settlor’s separate account for the fund 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 Securities and Exchange Act, the shares include the self-owned shares and shares held in trust, and at the same time, the shareholder has the power to decide how to allocate the trust assets. The information on the reported share equity of insider is provided in the “Market Observation Post System”.

• Note 3: As of March 31, 2021, the number of shares held by the chairman under his own name and under the names of others was 116,043,962 shares, and the shareholding ratio was 12.53%. The abovementioned information is provided in the “Market Observation Post System”.

Table 10, Page 1