ZENITRON — Audit Report / Information 2020

Dec 11, 2020

ZENITRON CORPORATION

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT

DECEMBER 31, 2020 AND 2019

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

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INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Zenitron Corporation

Opinion

We have audited the accompanying parent company only balance sheets of Zenitron Corporation (the “Company”) as at December 31, 2020 and 2019, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2020 and 2019, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audit of the parent company only financial statements as at and for the year ended December 31, 2020 in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and generally accepted auditing standards in the Republic of China; and in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants, Financial Supervisory Commission No. 1090360805 of February 25, 2020 and generally accepted auditing standards in the Republic of China for our audit of the parent company only financial statements as at and for the year ended December 31, 2019. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the parent company only financial statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key audit matters

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

Key audit matters for the Company’s 2020 parent company only financial statements are stated as follows:

Valuation of allowance for uncollectible accounts receivable

Description

Refer to Note 4(7)(8), Note 5(1) and Note 6(4) for accounting policies on accounts receivable, accounting estimates and assumptions on impairment assessment as well as details of related impairment, respectively.

The Company assesses impairment of accounts receivable based on historical experience and takes into consideration the customers’ historical default records and current financial conditions to estimate expected loss rate in recognising loss allowance. In addition, the Company provides for full allowance for uncollectible accounts from individual customers where there is an indication that they are individually identified as impaired or a credit impairment actually occurred. As the assessment of allowance for uncollectible accounts is subject to management’s judgment and estimates in determining the future collectability, such as management’s assessment of customer’s credit risk, we considered the valuation of allowance for uncollectible accounts receivable from individual customers a key audit matter.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

1. Understood and evaluated related policies and internal control of the credit risk management and accounts receivable impairment.

2. Assessed the calculation logic of year-end accounts receivable ageing report provided by management, reviewed the related supporting documents and verified it against the accounting records to ascertain the accuracy of the ageing classification.

3. For those material accounts receivable individually identified by the management to have been impaired, reviewed the supporting documents of impairment assessment provided by the management to assess the reasonableness of collectability.

4. Sampled significant overdue accounts receivable amounts and examined their subsequent collections.

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Assessment of allowance for inventory valuation losses

Description

Refer to Note 4(11), Note 5(2) and Note 6(5) for accounting policies on inventory valuation, accounting estimates and assumptions and details of allowance for valuation losses, respectively.

The Company is mainly engaged in sales of electronic components. The Company measures ending inventories at the lower of cost and net realisable value and provides allowance for inventory valuation losses based on usable condition of inventories that were individually identified as obsolete. As the life cycle of such inventories is short, the market is competitive, and the assessment of allowance for valuation of inventories individually identified as obsolete often involves management’s subjective judgment, we considered the estimation of inventory valuation loss a key audit matter.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

1. Understood and evaluated the internal control procedures over the Company’s inventories individually identified as obsolete.

2. Understood the Company’s warehousing control procedures, reviewed the annual physical inventory count plan as well as participated and observed the annual physical inventory count in order to assess the effectiveness of the procedures the management used to identify and control obsolete inventories.

3. Obtained the details of inventories that were individually identified as obsolete by the management, reviewed the related supporting documents and verified it against the accounting records.

Appropriateness of warehouse revenue cut-off

Description

Refer to Note 4(22) for accounting policies on revenue recognition.

The Company has two revenue types, including direct shipment from its own warehouses and shipment from distribution warehouses. For shipment from distribution warehouses, revenue is recognised when goods are picked up by customers. The Company’s responsible unit regularly obtains the inventory movement records generated from the inventory warehousing system of the customer’s distribution warehouses. The supporting documents for revenue recognition include inventory movement records. As the distribution warehouses are located separately in various regions in China, the process of revenue recognition involves numerous manual procedures. Considering the appropriateness of the timing of distribution warehouses’ sales revenue recognition, we considered the recognition of distribution warehouses sales revenue a key audit matter.

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How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

1. Understood the procedures of revenue recognition for shipment from distribution warehouses, evaluated and sampled the internal control of the two parties’ daily reconciliation.

2. Obtained the inventory movement records generated from the inventory warehousing system of the customer’s distribution warehouses in a certain period before and after the balance sheet date and checked whether the timing of revenue recognition was reasonable.

3. Observed the physical inventory count or sent out confirmation letters to the distribution warehouses with significant inventory amount.

Responsibilities of management and those charged with governance for the parent company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including the audit committee, are responsible for overseeing the Company’s financial reporting process.

Auditors’ responsibilities for the audit of the parent company only financial statements

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

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

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

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

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

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

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

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

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

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

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

Chen, Chin-Chang Yi-Fan Lin For and on behalf of PricewaterhouseCoopers, Taiwan March 22, 2021

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The accompanying parent company only 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 parent company only financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

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

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ZENITRON CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan Dollars)

Assets	December31,2020 Notes AMOUNT % 6(1) $ 562,899 4 6(2) 14,626 - 6(3) 858,856 6 6(4) 11,770 - 6(4) 4,357,461 30 7 1,141,133 8 98,069 1 7 224,194 2 6(5) 4,297,237 29 72,449 - 11,638,694 80 6(3) 46,111 - 6(6) 2,536,286 17 6(7) 376,212 3 6(8) 764 - 6(10) and 8 37,036 - 6(22) 50,424 - 8 48,442 - 3,095,275 20 $ 14,733,969 100 (Continued)	December31,2019	December31,2019
		AMOUNT $ 465,932 32,196 667,431 9,313 3,644,468 499,230 73,357 220,435 2,392,963 96,358 8,101,683 46,111 2,357,370 382,711 995 37,579 35,543 48,822 2,909,131 $ 11,010,814	%
Current assets Cash and cash equivalents Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - current Notes receivable, net Accounts receivable, net Accounts receivable - related parties, net Other receivables Other receivables - related parties Inventories, net Other current assets Total current assets Non-current assets Financial assets at fair value through other comprehensive income - non-current Investments accounted for using equity method Property, plant and equipment Right-of-use assets Investment property, net Deferred income tax assets Other non-current assets Total non-current assets Total assets			4 - 6 - 33 5 1 2 22 1
			74
			- 20 4 - - - 2
			26
			100

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ZENITRON CORPORATION

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan Dollars)

Liabilities and Equity	Notes 6(11) 6(12) 7 6(8) 6(22) 6(8) 6(13) 6(14) 6(15) 6(16) 9 6(16) and 11	December31,2020 AMOUNT % $ 6,381,379 43 549,506 4 2,496 - 2,506,644 17 44,694 - 250,499 2 - - 406 - 11,973 - 9,747,597 66 114,468 1 354 - 69,992 - 184,814 1 9,932,411 67 2,138,249 15 958,734 7 718,200 5 643,662 4 342,713 2 4,801,558 33 $ 14,733,969 100	December31,2019	December31,2019
		AMOUNT $ 6,381,379 549,506 2,496 2,506,644 44,694 250,499 - 406 11,973 9,747,597 114,468 354 69,992 184,814 9,932,411 2,138,249 958,734 718,200 643,662 342,713 4,801,558 $ 14,733,969	AMOUNT $ 3,949,484 499,481 3,664 1,760,945 14,725 162,485 25,123 871 8,152 6,424,930 114,468 123 65,585 180,176 6,605,106 2,138,249 965,034 695,154 390,067 217,204 4,405,708 $ 11,010,814	%
Current liabilities Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Accounts payable - related parties Other payables Current income tax liabilities Current lease liabilities Other current liabilities Total current liabilities Non-current liabilities Deferred income tax liabilities Non-current lease liabilities Other non-current liabilities Total non-current liabilities Total liabilities Equity Share capital Common stock Capital surplus Capital surplus Retained earnings Legal reserve Unappropriated retained earnings Other equity interest Other equity interest Total equity Significant contingent liabilities and unrecognised contract commitments Siginificant subsequent events Total liabilities and equity				36 5 - 16 - 1 - - -
				58
				1 - 1
				2
				60
				19 9 6 4 2
				40
				100

The accompanying notes are an integral part of these parent company only financial statements.

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ZENITRON CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

YEARS ENDED DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan Dollars, except for earnings per share)

Items

Year ended December 31 2020 2019 Notes AMOUNT % AMOUNT % 6(17) and 7 $ 20,128,205 100 $ 15,469,871 100 6(5) and 7 ( 19,479,725) ( 97) ( 14,777,080)( 96) 648,480 3 692,791 4 ( 1,600 ) - ( 1,600) - 1,600 - 1,600 - 648,480 3 692,791 4 6(20) ( 421,985 ) ( 2) ( 353,160) ( 2) ( 204,174) ( 1) ( 160,032)( 1) ( 626,159) ( 3) ( 513,192)( 3) 22,321 - 179,599 1 6,054 - 7,867 - 6(18) 60,443 - 63,529 - 6(19) 100,790 1 47,432 - 6(21) ( 67,696 ) - ( 109,397) ( 1) 6(6) 355,842 2 89,909 1 455,433 3 99,340 - 477,754 3 278,939 1 6(22) ( 5,729) - ( 48,358) - $ 472,025 3$ 230,581 1 6(13) ( $ 5,623 ) - ($ 147) - 6(3) 217,244 1 224,144 1 6(22) 1,124 - 30 - ( 75,020) - ( 51,752) - $ 137,725 1$ 172,275 1 $ 609,750 4$ 402,856 2 6(23) $ 2.21$ 1.08 $ 2.20$ 1.08

Operating Revenue Operating Costs Gross Profit Unrealised gain from sales Realised gain from sales Net Gross Profit Operating Expenses Selling expenses General and administrative expenses Total operating expenses Operating Profit Non-operating Income and Expenses Interest income Other income Other gains and losses Finance costs Share of profit of subsidiaries and joint ventures accounted for using equity method Total non-operating income and expenses Profit before Income Tax Income tax expense Profit for the Year Other Comprehensive Income Components of other comprehensive income (loss) that will not be reclassified to profit or loss Loss on remeasurements of defined benefit plan Unrealised gains from investments in equity instruments measured at fair value through other comprehensive income Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Components of other comprehensive income (loss) that will be reclassified to profit or loss Exchange differences on translation of foreign financial statements Other Comprehensive Income for the Year Total Comprehensive Income Earnings per Share (in dollars) Basic earnings per share Diluted earnings per share

The accompanying notes are an integral part of these parent company only financial statements.

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ZENITRON CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan Dollars)

Notes Year ended December 31, 2019 Balance at January 1, 2019 Net income for the year Other comprehensive income (loss) Total comprehensive income (loss) Appropriations and distribution of 2018 earnings 6(16) Legal reserve Cash dividends Balance at December 31, 2019 Year ended December 31, 2020 Balance at January 1, 2020 Net income for the year Other comprehensive income (loss) Total comprehensive income (loss) Appropriations and distribution of 2019 earnings 6(16) Legal reserve Cash dividends Cash payment from capital surplus 6(16) Disposal of investments in equity instruments designated at fair value through other comprehensive income 6(3) Balance at December 31, 2020	Notes		Share capital – common stock		Capital surplus		Retained	Earnings	Other Equity Interest	Other Equity Interest		Total equity
							Legal reserve	Unappropriated retained earnings	Exchange differences on translation of foreign financial statements	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
			$2,138,249 - - - - - $2,138,249 $2,138,249 - - - - - - - $2,138,249	$ 965,034 - - - - - $ 965,034 $ 965,034 - - - - - ( 6,300) - $ 958,734			$ 654,490 - - - 40,664 - $ 695,154 $ 695,154 - - - 23,046 - - - $ 718,200	$ 563,767 230,581 ( 117) 230,464 ( 40,664) ( 363,500) $ 390,067 $ 390,067 472,025 ( 4,499) 467,526 ( 23,046) ( 207,600) - 16,715 $ 643,662	($ 38,919) - ( 51,752) ( 51,752) - - ($ 90,671) ($ 90,671) - ( 75,020) ( 75,020) - - - - ($ 165,691)	$ 83,731 - 224,144 224,144 - - $ 307,875 $ 307,875 - 217,244 217,244 - - - ( 16,715) $ 508,404	$4,366,352 230,581 172,275 402,856 - ( 363,500) $4,405,708 $4,405,708 472,025 137,725 609,750 - ( 207,600) ( 6,300) - $4,801,558

The accompanying notes are an integral part of these parent company only financial statements.

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ZENITRON CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2020 AND 2019

(Expressed in thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Unrealised gain from sales Realised gain from sales Net gain on financial assets at fair value through profit or loss Expected credit loss (gain) Share of profit of subsidiaries and joint ventures accounted for using equity method Depreciation and amortisation (Gain) loss on disposal of property, plant and equipment Interest expense Interest income Dividend income Changes in operating assets and liabilities Changes in operating assets Financial assets at fair value through profit or loss Notes and accounts receivable Accounts receivable - related parties Other receivables (including related parties) Inventories Increase in other current assets Changes in operating liabilities Notes and accounts payable (including related parties) Other payables Other current liabilities Other non-current liabilities Cash (outflow) inflow generated from operations Interest received Interest paid Income tax paid Net cash flows (used in) from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Proceeds from capital reduction of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment (Increase) decrease in refundable deposits (Increase) decrease in other receivables - related parties Increase in other current assets Dividends received Net cash flows from (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in short-term loans Increase (decrease) in short-term notes and bills payable Payments of lease liabilities Cash dividends paid Net cash flows from (used in) financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

Year ended December 31 Notes 2020 2019 $ 477,754 $ 278,939 1,600 1,600 ( 1,600 ) ( 1,600 ) 6(19) ( 2,568 ) ( 10,696 ) 6(4) 5,674 ( 2,095 ) 6(6) ( 355,842 ) ( 89,909 ) 6(20) 17,743 18,281 6(19) ( 74 ) 161 6(21) 67,696 109,397 ( 6,054 ) ( 7,867 ) 6(18) ( 24,105 ) ( 20,593 ) 20,138 5,701 ( 721,124 ) 342,762 ( 641,903 ) 1,218,097 ( 20,367 ) ( 23,353 ) ( 1,904,274 ) 1,203,829 23,909 25,459 774,500 ( 738,470 ) 88,815 ( 123,803 ) 3,821 ( 8,435 ) ( 1,216 ) 396 ( 2,197,477 ) 2,177,801 6,054 7,867 ( 68,497 ) ( 120,778 ) ( 49,712 ) ( 74,689 ) ( 2,309,632 ) 1,990,201 ( 74 ) ( 36,570 ) 25,892 - 100,833 - 6(7) ( 6,380 ) ( 10,260 ) 200 786 ( 999 ) 27 ( 3,000 ) 8,491 ( 1,982 ) ( 1,938 ) 25,177 20,593 139,667 ( 18,871 ) 6(24) 2,431,895 ( 1,492,382 ) 6(24) 50,025 ( 99,922 ) 6(24) ( 1,088 ) ( 1,144 ) 6(16) ( 213,900 ) ( 363,500 ) 2,266,932 ( 1,956,948 ) 96,967 14,382 465,932 451,550 $ 562,899 $ 465,932

The accompanying notes are an integral part of these parent company only financial statements.

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ZENITRON CORPORATION

NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

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

1. HISTORY AND ORGANISATION

Zenitron Corporation (the “Company”) was incorporated as a company limited by shares in October 1982. The Company has been listed on the Taiwan Stock Exchange and started trading since August 26, 2002. The Company is primarily engaged in the sales of electrical components.

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

These parent company only financial statements were authorised for issuance by the Board of Directors on March 22, 2021.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

• (1) Effect of the adoption of new issuances of or amendments to International Financial Reporting

Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)

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

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

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

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

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

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

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

Any lease payment changes caused by the rent concessions will be accounted for as variable lease payments during the concession period.

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

the Company

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

New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 4, ‘Extension of the temporary exemption from applying IFRS 9’ 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 Company’s financial condition and financial performance based on the Company’s assessment.

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

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

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

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these parent company financial statements

are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

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(1) Compliance statement

The parent company only financial statements of the Company have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(2) Basis of preparation

• A. Except for the following items, the parent company only financial statements have been prepared under the historical cost convention:

• (a) Financial assets at fair value through profit or loss.

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

• (c) Defined benefit 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 critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’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) Foreign currency translation

The parent company only financial statements are presented in New Taiwan Dollars, which is the presentation currency of the primary economic environment in which the Company operates (the “functional currency”).

• A. Foreign currency transactions and balances

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

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

• B. Translation of foreign operations

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

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

  • (b) Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

  • (c) All resulting exchange differences are recognised in other comprehensive income.

• (4) 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.

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

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

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

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

• D. The Company recognises the dividend income when the right to receive payment is established,

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future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

(6) 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 Company 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 Company measures the financial assets at fair value plus transaction costs. The Company 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 of 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 Company and the amount of the dividend can be measured reliably.

• (7) Accounts and notes receivable

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

• 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.

(8) Impairment of financial assets

• For accounts receivable or contract assets that have a significant financing component, at each reporting date, the Company 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 or contract assets that do not contain a significant financing component, the Company recognises the impairment provision for lifetime ECLs.

(9) Derecognition of financial assets

The Company 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.

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

－ (10) Leasing arrangements (lessor) lease receivables/ operating leases

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in

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profit or loss on a straight-line basis over the lease term.

(11) Inventories

• Inventories are stated at the lower of cost and net realisable value. Cost is determined using the moving 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.

(12) Investments accounted for using equity method / subsidiaries

• A. Subsidiaries are all entities (including structured entities) controlled by the Company. The Company controls an entity when the Company 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.

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

• C. The Company’s share of its subsidiaries’ 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 Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognise losses proportionate to its ownership.

• 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. Pursuant to the Regulations Governing the Preparation of Financial Reports by Securities Issuers, profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall equal to the amount attributable to owners of the parent in the financial statements prepared with basis for consolidation. Owners’ equity in the parent company only financial statements shall equal to equity attributable to owners of the parent in the financial statements prepared with basis for consolidation.

(13) Property, plant and equipment

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

• 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 Company 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.

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• 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 financial year-end. 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 and structures 1 ~ 55 year(s) Transportation equipment 1 ~ 5 year(s) Office equipment 1 ~ 5 year(s)

(14) 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 Company. For short-term leases or leases of low-value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of fixed payments, less any lease incentives receivable.

• The Company 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;

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

• (d) An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

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

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(15) 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.

(16) Impairment of non-financial assets

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

(17) Borrowings

Borrowings comprise short-term bank borrowings and other short-term loans.

• (18) Notes and accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods 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.

(19) Derecognition of financial liabilities

A financial liability is derecognised when the obligation specified in the contract is either discharged or cancelled or expires.

(20) 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 plan

For defined contribution plan, 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 plan

• 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 Company in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plan is the present value of the defined benefit obligation

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at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date).

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

     - iii. Past service costs are recognised immediately in profit or loss.

• C. Employees’ compensation and directors’ remuneration

  • Employees’ compensation and directors’ remuneration are recognised as expense and liability, provided that recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the accrued amounts and the subsequently actual distributed amounts resolved by the shareholders is accounted for as changes in estimates.

• (21) 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 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 an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Company 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.

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(22) Revenue recognition

Sales of goods - agency

• A. The Company is an agency of electronic components. Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the 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 Company has objective evidence that all criteria for acceptance have been satisfied.

• B. A receivable is recognised when the goods are delivered as this is the timing based on trade terms that the consideration is unconditional because only the passage of time is required before the payment is due.

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

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’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) Valuation of allowance for uncollectible accounts receivable

• The assessment of accounts receivable impairment relies on the Company’s judgement and assumption about the recoverable amount of the accounts receivable in the future, taking into account various factors such as client’s financial status, the Company’s internal credit rating, transaction history, current economic condition and others which might affect the client’s repayment ability. Where there is suspicion of recoverability, the Company needs to assess the possible recoverable amount and recognise reasonable allowance. The assessment of impairment depends on reasonable expectation about future events on the basis of the conditions existing at the balance sheet date. The estimation may differ from the actual result and may lead to significant changes.

• (2) Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Company must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Company 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 demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

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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	December 31,2020 192 $ 562,707 562,899 $	December 31,2019
		192 $ 465,740
		465,932 $

• A. The Company 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.

• B. The Company has no cash pledged to others.

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

		December	31,2020		December	31,2019
Current items
Financial assets mandatorily measured at fair
value through profit or loss
Listed stocks		$	22,951		$	60,942
Valuation adjustments	(		8,325)	(		28,746)
		$	14,626		$	32,196

• A. The Company recognised net profit amounting to $2,568 and $10,696 on financial assets at fair value through profit or loss for the years ended December 31, 2020 and 2019, respectively.

• B. The Company has no financial assets at fair value through profit or loss pledged to others as collateral.

• C. Information relating to financial assets at fair value through profit or loss is provided in Note 12(3).

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

Current items Equity instruments Listed stocks Emerging stocks Valuation adjustment Non-current items Equity instruments Unlisted stocks	December31,2020 347,990 $ 2,462 350,452 508,404 858,856 $ 46,111 $	December31,2019
		357,168 $ 2,388
		359,556 307,875
		667,431 $
		46,111 $

• A. The Company has elected to classify stock investments with steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $904,967 and $713,542 for the years ended December 31, 2020 and 2019, respectively. Without considering any collateral held or other credit enhancements, until the end of the reporting period, the maximum credit risk in relation to the financial loss arising from

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unsatisfied performance obligation of the counterparties is the carrying amount of financial assets.

• B. Aiming to adjust strategic investment, the Company sold $25,892 stock investment at fair value resulting in cumulative gain on disposal of $16,715 during the year ended December 31, 2020.

• C. Amounts recognised in other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

		YearendedDecember31	YearendedDecember31	YearendedDecember31
		2020		2019
Equity instruments at fair value through other
comprehensive income
Fair value change recognised in other
comprehensive income	$	217,244	$	224,144
Cumulative gains reclassified to retained
earnings due to derecognition	($	16,715)	$	-

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

• E. Information relating to fair value of financial assets at fair value through other comprehensive income is provided in Note 12(3).

(4) Notes and accounts receivable

Notes and accounts receivable
		December	31,2020		December	31,2019
Notes receivable		$	11,770		$	9,313
Accounts receivable		$	4,428,017		$	3,709,350
Less: Allowance for uncollectible accounts	(		70,556)	(		64,882)
		$	4,357,461		$	3,644,468

• A. The Company uses historical experience and takes into consideration the customers’ historical default records, current financial conditions and economic conditions of the industry to estimate expected loss rate in recognising loss allowance. In addition, the Company provides for adequate allowance for uncollectible accounts from individual customers where there is an indication that they are impaired based on specific identification or a credit impairment actually occurred and the customers did not provide any collateral.

• B. The ageing analysis of accounts and notes receivable is as follows:

Not past due Up to 30 days 31 to 90 days Over 90 days	December	Notes receivable 11,770 $ - - - 11,770 $ 31,2020	December	31,2020
	Accounts receivable 4,293,105 $ 4,294 78,043 52,575 4,428,017 $		Accounts receivable 3,607,334 $ 4,880 46,719 50,417 3,709,350 $	Notes receivable
				9,313 $ - - -
				9,313 $

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The above ageing analysis was based on past due date.

• C. The Company applies the simplified approach using the provision matrix based on the loss rate methodology to estimate expected credit loss.

• D. The Company adjusts historical and timely information to assess the default possibility of accounts receivable, contract assets and lease payments receivable. On December 31, 2020 and 2019, the provision matrix based on the roll rate methodology is as follows:

December 31, 2020 Expected loss rate Total accounts receivable December 31, 2019 Expected loss rate Total accounts receivable	0.11% 4,293,105 $ 0.3% 3,607,334 $ Notpast due Notpast due	Up to 30 dayspast due 0.11%-0.13% 4,294 $ Up to 30 dayspast due 0.3% 4,880 $	31~90 dayspast due 0.11%-100% 78,043 $ 31~90 dayspast due 0.3% 46,719 $	Over 90 dayspast due 0.11%-100% 52,575 $ Over 90 dayspast due 53.6%-100% 50,417 $	Total
					4,428,017 $
					Total
					3,709,350 $

• E. Movements in relation to the Company applying the simplified approach to provide loss allowance for accounts receivable are as follows:

At January 1 Provision for (reversal of) impairment loss Write-offs At December 31	2020 2019 Accounts receivable Accounts receivable 64,882 $ 66,976 $ 5,674 2,095) ( - 1 70,556 $ 64,882 $

• F. As of December 31, 2020, December 31, 2019 and January 1, 2019, the balances of receivables (including notes receivable) from contracts with customers amounted to $4,439,787, $3,718,663 and $4,061,424, respectively. Without considering any collateral held or other credit enhancements, until the end of the reporting period, the maximum credit risk in relation to the financial loss arising from unsatisfied performance obligation of the counterparties is the carrying amount of financial assets.

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

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(5) Inventories

December 31, 2020

December31,2020		December31,2020
The cost of inventories recognised as expense for the year: Investments accounted for using equity method A. Subsidiaries accounted for using equity method Merchandise inventories 4,175,374 $ 224,747) ($ 3,950,627 $ Inventories in transit 346,610 - 346,610 4,521,984 $ 224,747) ($ 4,297,237 $ Merchandise inventories 2,534,104 $ 203,483) ($ 2,330,621 $ Inventories in transit 62,342 - 62,342 2,596,446 $ 203,483) ($ 2,392,963 $ Cost Allowance for valuation loss Bookvalue Cost Allowance for valuation loss Bookvalue December31,2019 2020 2019 Cost of goods sold 19,416,759 $ 14,700,112 $ Loss on decline in market value 62,966 76,968 19,479,725 $ 14,777,080 $ Year ended December 31 December31,2020 December31,2019 Supertronic International Corp. 2,414,819 $ 2,187,631 $ Zenitron (HK) Limited 33,316 29,836 Yo-Teh Investment Corporation 57,676 111,749 Raytronic Corporation 30,475 28,154 2,536,286 $ 2,357,370 $	4,175,374 $ 346,610 4,521,984 $ Cost	224,747) ($ - 224,747) ($ Allowance for valuation loss December31,2019	Bookvalue
			3,950,627 $ 346,610
			4,297,237 $
			Bookvalue
			2,330,621 $ 62,342
			2,392,963 $
		2020 19,416,759 $ 62,966 19,479,725 $ December31,2020 2,414,819 $ 33,316 57,676 30,475 2,536,286 $	2019 14,700,112 $ 76,968 14,777,080 $ December31,2019
			2,187,631 $ 29,836 111,749 28,154
			2,357,370 $

(6) Investments accounted for using equity method

• B. Share of profit of subsidiaries accounted for using equity method

Supertronic International Corp. Zenitron (HK) Limited Yo-Teh Investment Corporation Raytronic Corporation	Year ended December 31	Year ended December 31
	2020 301,241 $ 4,448 47,832 2,321 355,842 $	2019
		84,699 $ 1,294 1,192 2,724
		89,909 $

Refer to Note 4(3) the consolidated financial statements for the year ended December 31, 2020 for the information regarding the Company’s subsidiaries.

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(7) Property, plant and equipment

Property, plant and equipment
At January 1, 2020 Cost Accumulated depreciation 2020 Opening net book amount as at January 1 Additions Disposals Depreciation charge Closing net book amount as at December 31 At December 31, 2020 Cost Accumulated depreciation At January 1, 2019 Cost Accumulated depreciation 2019 Opening net book amount as at January 1 Additions Disposals Depreciation charge Closing net book amount as at December 31 At December 31, 2019 Cost Accumulated depreciation		Land	Buildings and structures	Transportation equipment	Office equipment	Total
		252,592 $ - 252,592 $ 252,592 $ - - - 252,592 $ 252,592 $ - 252,592 $ Land	334,227 $ 230,928) ( 103,299 $ 103,299 $ - - 4,779) ( 98,520 $ 334,227 $ 235,707) ( 98,520 $ Buildings and structures	43,704 $ 29,306) ( 14,398 $ 14,398 $ 5,740 126) ( 4,253) ( 15,759 $ 43,864 $ 28,105) ( 15,759 $ Transportation equipment	60,445 $ 48,023) ( 12,422 $ 12,422 $ 640 - 3,721) ( 9,341 $ 61,002 $ 51,661) ( 9,341 $ Office equipment	690,968 $ 308,257) ( 382,711 $ 382,711 $ 6,380 126) ( 12,753) ( 376,212 $ 691,685 $ 315,473) ( 376,212 $ Total
		252,592 $ - 252,592 $ 252,592 $ - - - 252,592 $ 252,592 $ - 252,592 $	334,227 $ 225,862) ( 108,365 $ 108,365 $ - - 5,066) ( 103,299 $ 334,227 $ 230,928) ( 103,299 $	46,284 $ 32,165) ( 14,119 $ 14,119 $ 5,500 924) ( 4,297) ( 14,398 $ 43,704 $ 29,306) ( 14,398 $	67,135 $ 55,642) ( 11,493 $ 11,493 $ 4,760 23) ( 3,808) ( 12,422 $ 60,445 $ 48,023) ( 12,422 $	700,238 $ 313,669) ( 386,569 $ 386,569 $ 10,260 947) ( 13,171) ( 382,711 $ 690,968 $ 308,257) ( 382,711 $

The significant components of buildings and structures include main building and auxiliary building, which are depreciated over 55 and 15 years, respectively.

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(8) Lease arrangements – lessee

Right-of-use assets: Buildings and structures Lease liabilities: Current Non-current	December31,2020 Carrying amount 764 $ 406 $ 354 760 $	December31,2019
		Carrying amount
		995 $
		871 $ 123
		994 $

• A. The Company leases various assets including buildings. Rental contracts are typically made for periods of 1 to 3 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 transportation equipment, buildings and structures. Low-value assets comprise office equipment. Right-of-use asset and lease liabilities were not recognised for these leases.

• C. The depreciation charges on right-of-use assets are as follows:

The depreciation charges on right-of-use assets are	as follows:	as follows:
Buildings and structures	YearendedDecember31
	2020 Depreciationcharge 1,086 $	2019
		Depreciationcharge
		1,142 $

• D. For the years ended December 31, 2020 and 2019, the additions to right-of-use assets were $854 and $0, respectively.

• E. Except for the depreciation charge, the information on profit or loss in relation to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term leases and leases of low-value assets	2020 2019 15 $ 19 $ 489 471 YearendedDecember31	2020 2019 15 $ 19 $ 489 471 YearendedDecember31
		2019 19 $ 471

• F. For the years ended December 31, 2020 and 2019, the Group’s total cash outflow for leases were $1,592 and $1,634, respectively.

－ (9) Lease arrangements lessor

For the years ended December 31, 2020 and 2019, the Company recognised rent income in the amounts of $6,897 and $6,907, respectively, based on the operating lease agreement, which does not include variable lease payments.

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(10) Investment property

January 1, 2020 Cost Accumulated depreciation and impairment 2020 Opening net book amount as at January 1 Depreciation charge Closing net book amount as at December 31 December 31, 2020 Cost Accumulated depreciation and impairment January 1, 2019 Cost Accumulated depreciation and impairment 2019 Opening net book amount as at January 1 Depreciation charge Closing net book amount as at December 31 December 31, 2019 Cost Accumulated depreciation and impairment

Land Buildings Total $ 32,466 $ 29,941 $ 62,407 ( 15,410) (9,418) ( 24,828) 17,056 $ 20,523 $ 37,579 $ $ 17,056 $ 20,523 $ 37,579 - (543) (543) $17,056 $19,980 $ 37,036 $ 32,466 $ 29,941 $ 62,407 ( 15,410) (9,961) ( 25,371) 17,056 $ 19,980 $ 37,036 $ Land Buildings Total $ 32,466 $ 29,941 $ 62,407 ( 15,410) (8,874) ( 24,284) 17,056 $ 21,067 $ 38,123 $ $ 17,056 $ 21,067 $ 38,123 - (544) (544) $17,056 $20,523 $ 37,579 $ 32,466 $ 29,941 $ 62,407 ( 15,410) (9,418) ( 24,828) 17,056 $ 20,523 $ 37,579 $

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

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Rental revenue from investment property Direct operating expenses arising from the investment property that generated rental income during the year	YearendedDecember31	YearendedDecember31
	2020 2,546 $ 543 $	2019
		2,546 $
		544 $

• B. The fair value of the investment property held by the Company was $95,101 and $91,476 as of December 31, 2020 and 2019, respectively, which were based on the trading prices of nearby areas.

• C. Refer to Note 8 for further information on investment property pledged to others as collateral.

• (11) Short-term borrowings

Short-term borrowings
Unsecured borrowings Interest rate range	December31,2020 6,381,379 $ 0.64%~1.21%	December31,2019
		3,949,484 $
		1%~3%

• A. For the years ended December 31, 2020 and 2019, the interest expense recognised in profit or loss amounted to $64,592 and $105,580, respectively.

• B. As of December 31, 2020 and 2019, the Company provided collaterals for the financing facility of short-term borrowings and issued guaranteed notes as collateral in the amount of $11,309,510 and $11,516,175, respectively.

(12) Short-term notes and bills payable

Short-term notes and bills payable
			December31,2020		December31,2019
Short-term notes and bills payable		$	550,000		$	500,000
Discount on short-term notes and bills payable	(		494)	(		519)
		$	549,506		$	499,481
Coupon rate			1%~1.2%			1%~1.2%

The abovementioned commercial paper was secured by financial institutions.

(13) Pensions

• A. (a) The Company has 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 Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee.

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

~30~

		December	31,2020		December	31,2019
Present value of defined benefit obligations		$	84,217		$	80,044
Fair value of plan assets	(		18,965)	(		19,246)
Net defined benefit liability		$	65,252		$	60,798

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

		Present value of	Present value of
		defined benefit				Fair value of			Net defined
			obligations			planassets		benefitliability
2020
Balance at January 1	($		80,044)		$	19,246	($		60,798)
Current service cost			1,444			-			1,444
Interest (expense) income	(		592)			137	(		455)
	(		79,192)			19,383	(		59,809)
Remeasurements:
Return on plan assets			-			632			632
Change in demographic
assumptions	(		465)			-	(		465)
Change in financial assumptions	(		3,702)			-	(		3,702)
Experience adjustments	(		2,088)			-	(		2,088)
	(		6,255)			632	(		5,623)
Paid pension			1,230	(		1,230)			-
Pension fund contribution			-			180			180
Balance at December 31	($		84,217)		$	18,965	($		65,252)
		Present value of
		defined benefit				Fair value of			Net defined
			obligations			planassets		benefitliability
2019
Balance at January 1	($		78,464)		$	18,234	($		60,230)
Interest (expense) income	(		775)			174	(		601)
	(		79,239)			18,408	(		60,831)
Remeasurements:
Return on plan assets			-			658			658
Change in demographic
assumptions			9			-			9
Change in financial assumptions	(		2,017)			-	(		2,017)
Experience adjustments			1,203			-			1,203
	(		805)			658	(		147)
Pension fund contribution			-			180			180
Balance at December 31	($		80,044)		$	19,246	($		60,798)

~31~

• (d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-thecounter, or private placement equity securities, investment in domestic or foreign real estate securitisation products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2020 and 2019 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

• (f) The principal actuarial assumptions used were as follows:

The principal actuarial assumptions used were	as follows:	as follows:
Discount rate Future salary increases	YearendedDecember31
	2020 0.30% 2.00%	2019
		0.75%
		2.00%

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

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

Increase 0.25% Decrease 0.25% December 31, 2020 Effect on present value of defined benefit obligation 2,061) ($ 2,139 $ December 31, 2019 Effect on present value of defined benefit obligation 2,016) ($ 2,095 $ Discount rate	Future salaryincreases	Future salaryincreases
	Increase 0.25% Decrease 0.25% 2,097 $ 2,032) ($ 2,064 $ 1,997) ($	Decrease 0.25%

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

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

~32~

• (f) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2021 amount to $180.

• (g) As of December 31, 2020, the weighted average duration of the retirement plan is 9 years. The analysis of timing of the future pension payment was as follows:

The analysis of timing of the future pension payment was as follows:
Within 1 year 1-2 year(s) 2-5 years Over 5 years	2,421 $ 3,767 20,562 59,483
	86,233 $

• B. (a) Effective July 1, 2005, the Company has 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 contributes monthly an amount not lower than 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

  • (b) The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2020 and 2019 were $14,710 and $14,540, respectively.

• (14) Share capital

• A. As of December 31, 2020, the Company’s authorised capital was $3,500,000, consisting of 350 million shares of ordinary stock (including 20 million shares reserved for employee stock options), and the paid-in capital was $2,138,249 with a par value of $10 (in dollars) per share.

• B. As of December 31, 2020 and 2019, the beginning and ending number of outstanding shares were both 213,825 thousand shares.

(15) Capital surplus

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

(16) Retained earnings / events after the balance sheet date

• A. In accordance with 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, and setting aside or reversal of special reserve in accordance with related laws, if any. The remaining earnings are the distributable earnings for the year.

~33~

• B. Dividend policy:

• (a) The distribution of dividends shall be above 50% of the current year’s distributable earnings and the cash dividends distributed shall not be lower than 20% of the current actual earnings distributed.

• (b) The Board of Directors is authorised to distribute all or part of the dividends and bonus in cash through a resolution adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors which shall be reported to the shareholders during their meeting.

• (c) When the Company has no deficit, the Board of Directors is authorised to distribute all or part of the legal reserve (for the part that exceeds 25% of paid-in capital) and capital surplus if it meets the requirements under the Company Act in cash through a resolution adopted by a majority vote at a meeting of the Board of Directors attended by two-thirds of the total number of directors which shall be reported to the shareholders during their meeting.

• C. 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 distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• D. 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.

• E. The appropriations of 2019 and 2018 earnings as resolved by the shareholders on June 12, 2020 and June 12, 2019, respectively are as follows:

• (a) The distribution of 2019 and 2018 earnings were as follows:

Legal surplus Cash dividends	23,046 $ 207,600 0.9708 $ 230,646 $ 2019 Amount Dividend per share	40,664 $ 363,500 1.70 $ 404,164 $ 2018 Amount Dividend per share	40,664 $ 363,500 1.70 $ 404,164 $ 2018 Amount Dividend per share
	23,046 $ 207,600 230,646 $ Amount	40,664 $ 363,500 404,164 $ Amount
			1.70 $

• (b) For the year ended December 31, 2019, the cash payment from capital surplus was $0.0294 per share, totaling $6,300 .

F. Events after the balance sheet date

On March 22, 2021, the Company’s Board of Directors proposed the distribution of 2020 earnings as follows:

~34~

Legal surplus Cash dividends	2020	2020
	Amount 48,424 $ 406,300 454,724 $	Dividend per share and cash distributed
		1.90 $

The aforementioned distribution of 2020 earnings has not yet been resolved by the shareholders.

(17) Operating revenue

Operating revenue
Revenue from contracts with customers	YearendedDecember31
	2020 20,128,205 $	2019
		15,469,871 $

The Company derives revenue from the transfer of goods at a point in time in the following geographicalzregions:

Year ended December 31,2020 Revenue from external customer contracts Year ended December 31,2019 Revenue from external customer contracts	China 16,190,543 $ China 11,232,581 $	Taiwan 3,171,880 $ Taiwan 3,797,872 $	Others 765,782 $ Others 439,418 $	Total
				20,128,205 $
				Total
				15,469,871 $

(18) Other income

Other gains and losses Rent income Advertising income Dividend income Other income Foreign exchange gains Gains on financial assets at fair value through profit or loss Gains (losses) on disposals of property, plant and equipment Others	2020 2019 6,897 6,907 13,131 11,100 24,105 20,593 16,310 24,929 60,443 $ 63,529 $ YearendedDecember31 2020 2019 98,148 $ 35,905 $ 2,568 10,696 74 161) ( - 992 100,790 $ 47,432 $ Year ended December 31

(19) Other gains and losses

~35~

(20) Expenses by nature

Expenses by nature
Employee benefit expense Salary expenses Labour and health insurance fees Pension costs Directors’ remuneration Other personnel expenses Depreciation Amortisation	Year ended December31
	2020 354,698 $ 25,237 13,721 15,350 16,039 14,382 3,361	2019
		245,909 $ 25,791 15,141 6,380 16,532 14,857 3,424

As at December 31, 2020 and 2019, the Company had 361 and 355 employees, respectively. There were 6 non-employee directors for both years.

Note: The abovementioned expenses were all operating expenses.

• A. (a) Average employee benefit expense was $1,154 and $869 for the years ended December 31, 2020 and 2019, respectively.

• (b) Average employees’ salaries were $999 and $705 for the years ended December 31, 2020 and 2019, respectively.

• (c) Adjustment of average employees’ salaries was 42% for the year ended December 31, 2020.

• B. The Company has no supervisors’ remuneration as it has set up an audit committee.

• C. Remuneration policy of the Company (including directors, managers and employees):

• (a) Directors’ remuneration policy

  • In accordance with the Articles of Incorporation of the Company, remuneration of the Company’s directors is determined by the Board of Directors based on the assessment of the remuneration committee according to their participation in the operations of the Company and the value of their contribution and by reference to general pay levels in the industry. The Articles of Incorporation of the Company also prescribes that no more than 3% of the profit of the current year shall be distributed as directors’ remuneration.

• (b) Managers’ remuneration policy:

  • Remuneration of the Company’s managers is proposed by the remuneration committee and discussed and determined by the Board of Directors based on individual performance and contribution to the overall operations of the Company, taking into consideration the Company’s future operating risk and general pay levels in the industry.

• (c) Employees’ compensation policy

  • i. The Company follows the Labor Standards Act and related regulations to formulate salaries and benefits for employees. Employees’ compensation includes monthly salaries, quarterly sales bonuses, employees’ compensation and performance bonus which are distributed based on a certain percentage of the Company’s distributable profit.

~36~

• ii. In accordance with the Articles of Incorporation of the Company, 3%~12% of the current year’s earnings, if any, shall be distributed as employees’ compensation. If the Company has accumulated deficit, earnings should be reserved to cover losses before calculating the distribution. The employees’ compensation shall be distributed in the form of shares or in cash to employees including the employees of subsidiaries who meet certain specific requirements.

• D. The Company’s directors’ remuneration and employees’ compensation accounted as operating expenses were as follows:

expenses were as follows:
Directors’ remuneration Employees’ compensation	YearendedDecember31
	2020 15,000 $ 18,000 33,000 $	2019
		6,000 $ 9,000
		15,000 $

• E. For the year ended December 31, 2020, the employees’ compensation and directors’ remuneration were estimated and accrued based on a certain percentage of distributable profit of current year as of the end of reporting period.

• F. The employees’ compensation of $9,000 and directors’ remuneration of $6,000 for 2019 were resolved by the Board of Directors and were in agreement with those amounts recognised in the 2019 financial statements.

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

(21) Finance costs

Finance costs
Interest expense Other interest expense		Year ended December 31
		2020		2019
		64,592 $ 3,104 67,696 $		105,580 $ 3,817 109,397 $

~37~

(22) Income taxes

A. Income tax expense

• (a) Components of income tax expense:

Components of income tax expense:
			YearendedDecember31
			2020	2019
Current tax:
Currrent tax on profits for the year		$	21,150	$	52,955
Prior year income tax (over)
underestimation	(		1,664)		8,593
Total current tax			19,486		61,548
Deferred tax:
Origination and reversal of temporary
differences	(		13,757)	(	13,190)
Total deferred tax	(		13,757)	(	13,190)
Income tax expense		$	5,729	$	48,358

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

follows:
Remeasurement of defined benefit obligations	YearendedDecember31
	2020 1,124 $	2019
		30 $

• B. Reconciliation between income tax expense and accounting profit:

			YearendedDecember31	YearendedDecember31
			2020	2019
Tax calculated based on profit before tax and		$	95,551	$	55,788
statutory tax rate
Effects from items disallowed by tax regulation	(		88,158)	(	16,023)
Prior year income tax (over) underestimation	(		1,664)		8,593
Income tax expense		$	5,729	$	48,358

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

~38~

January1 Deferred tax assets (liabilities): Unrealised loss on valuation loss and slow-moving inventories 31,192 $ Unrealised actuarial loss on defined benefit plan 4,351 Share of profit of subsidiaries accounted for using equity method 114,468) ( 78,925) ($ January1 Deferred tax assets (liabilities): Unrealised loss on valuation loss and slow-moving inventories 18,002 $ Unrealised actuarial loss on defined benefit plan 4,321 Share of profit of subsidiaries accounted for using equity method 114,468) ( 92,145) ($		2020

D. The amounts of deductible temporary differences that were not recognised are as follows: E. The Company’s income tax returns through 2017 has been assessed and Authority. December31,2020 Deductible temporary differences 184,415 $	as deferred tax assets December31,2019
	243,718 $
	approved by the Tax

~39~

(23) Earnings per share

Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders Diluted earnings per share Profit attributable to ordinary shareholders Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders Diluted earnings per share Profit attributable to ordinary shareholders Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares		Year ended December 31,2020
		Profit after tax 472,025 $ 472,025 $ - 472,025 $ Year		Weighted average number of ordinary shares outstanding Earnings per (shares in thousands) share(in dollars) 213,825 2.21 $ 213,825 946 214,771 2.20 $ Weighted average number of ordinary shares outstanding Earnings per (shares in thousands) share(in dollars) 213,825 1.08 $ 213,825 576 214,401 1.08 $ ended December 31,2019	Earnings per share(in dollars)
					2.21 $
					2.20 $
				Weighted average number of ordinary shares outstanding (shares in thousands) 213,825 213,825 576 214,401

~40~

(24) Changes in liabilities from financing activities

										Liabilities from	Liabilities from
			Short-term	Short-term notes							financing
			borrowings	and	bills payable		Lease	liabilities		activities-gross
January 1, 2020		$	3,949,484	$	499,481		$	994		$	4,449,959
Changes in cash flow
from financing
activities			2,431,895		50,025	(		1,088)			2,480,832
Changes in other
non-cash items			-		-			854			854
December 31, 2020		$	6,381,379	$	549,506		$	760		$	6,931,645
										Liabilities from
			Short-term	Short-term notes							financing
			borrowings	and	bills payable		Lease	liabilities		activities-gross
January 1, 2019		$	5,441,866	$	599,403		$	2,138		$	6,043,407
Changes in cash flow
from financing
activities	(		1,492,382)	(	99,922)	(		1,144)	(		1,593,448)
December 31, 2019		$	3,949,484	$	499,481		$	994		$	4,449,959

7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship

Refer to Note 4(3)B of the consolidated financial statements.

(2) Significant related party transactions

• A. Operating revenue

Operating revenue
Zenitron (HK) Limited Others		Year ended December 31,2020		Year ended December 31,2019
		7,259,607 $ 614,648 7,874,255 $		3,661,538 $ 237,575 3,899,113 $

The sales price to related parties was determined based on initial cost plus a certain mark-up. The collection term was 60~90 days after monthly billings for related parties and 30~120 days after monthly billings for third parties.

B. Purchases

Purchases
Zenitron (HK) Limited		Year ended December 31,2020		Year ended December 31,2019
		242,132 $		109,359 $

The price and term for purchases from related parties was the same with third parties. The payment term was 60~90 days after monthly billings for related parties and approximately 10~75 days after monthly billings for general suppliers.

~41~

C. Receivables from related parties

Receivables from related parties
Payables to related parties Accounts receivable Zenitron (HK) Limited Others Other receivables ZTHC (Shanghai) Co., Ltd. Others Accounts payable Zenitron (HK) Limited Other payables	December31,2020 1,065,084 $ 76,049 1,141,133 $ December 31,2020 217,600 $ 6,594 224,194 $ December31,2020 25,170 $ 19,524 44,694 $	December31,2019
		454,209 $ 45,021
		499,230 $
		December 31,2019
		214,600 $ 5,835
		220,435 $
		December31,2019
		14,725 $ -
		14,725 $

D. Payables to related parties

E. Loans to /from related parties

Loans to related parties

(i) Outstanding balance:

(i) Outstanding balance:
(ii) Interest income Endorsements and guarantees provided to related parties December 31,2020 ZTHC (Shanghai) Co., Ltd. 217,600 $ Year ended December 31,2020 ZTHC (Shanghai) Co., Ltd. 5,335 $ December 31,2020 Zenitron (HK) Limited 997,208 $ Zenitron (Shanghai) International Trading Co., Ltd. 294,079 Zenitron (Shenzhen) Technology Co., Ltd. 158,856 1,450,143 $	December 31,2019 214,000 $ Year ended December 31,2019
	5,509 $ December 31,2019
	576,273 $ 270,518 232,904 1,079,695 $

F. Endorsements and guarantees provided to related parties

G. Key management compensation

Key management compensation
Salaries and other short-term employee benefits	Year ended December31
	2020 $46,314	2019
		$ 36,845

~42~

8. PLEDGED ASSETS

The Company’s assets pledged as collateral are as follows:

Pledged assets Investment property Guarantee deposits paid (shown as ‘other non-current assets’)	December 31, December 31, 2020 2019 2,945 $ 3,023 $ 10,000 10,000 12,945 $ 13,023 $ Bookvalue	Purpose
	December 31, 2020 2,945 $ 10,000 12,945 $
		Short-term borrowings Court deposits

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1) Contingencies

None.

(2) Commitments

As of December 31, 2020, other significant commitments were as follows:

As a requirement for the release of imported goods before duty and customs clearance, the Company has applied for customs guarantee with certain banks in the amount of $20,000.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

The distribution of 2020 earnings was resolved by the Company’s Board of Directors on March 22, 2021. Refer to Note 6(16) for more details.

12. OTHERS

(1) Capital risk management

The Company’s main objective when managing capital is to maintain an optimal credit ranking and capital ratio to support the operations and to maximize stockholders’ equity. Refer to the parent company only balance sheet of each period for related liabilities and capital ratio.

(2) Financial instruments

• A. Financial instruments by category

~43~

Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortised cost/receivables Cash and cash equivalents Notes receivable Accounts receivable (including related parties) Other receivables (including related parties) Guarantee deposits paid (shown as ‘other non- current assets) Financial liabilities Financial liabilities at amortised cost Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable (including related parties) Other accounts payable Guarantee deposits received (shown as ‘other non-current assets’) Lease liabilities	December 31,2020 14,626 $ 904,967 $ 562,899 $ 11,770 5,498,594 322,263 43,337 6,438,863 $ December 31,2020 6,381,379 $ 549,506 2,496 2,551,338 250,499 3,139 9,738,357 $ 760 $	December 31,2019
		32,196 $
		713,542 $
		465,932 $ 9,313 4,143,698 293,792 42,338
		4,955,073 $
		December 31,2019
		3,949,484 $ 499,481 3,664 1,775,670 162,485 3,187
		6,393,971 $
		994 $

• B. Financial risk management policies

• (a) The Company’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. The Company’s entire risk management policies is to identify and analyse all the risks by examining the impact of the macroeconomics, industrial developments, market competition and the Company’s business development so as to achieve the optimised risk position, to maintain adequate liquidity position and to centralise the management of all market risks.

• (b) Risk management is carried out by a central treasury department under policies approved by the Board of Directors. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters.

~44~

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

Foreign exchange risk

• i. The Company operates internationally and is exposed to foreign exchange risk arising from various currency, primarily with respect to the USD. Foreign exchange rate risk arises from future commercial transactions and recognised assets, liabilities and net investments in foreign operations.

• ii. The Company’s businesses involve some non-functional currency operations. The information on assets, liabilities denominated in foreign currencies and market risk whose values would be materially affected by the exchange rate fluctuations is as follows:

(Foreign currency: functional currency) Financial assets Monetary items USD JPY HKD RMB Investments accounted for using equity method USD HKD Financial liabilities Monetary items USD JPY HKD			December 31,2020	December 31,2020
	Foreign currency amount (In thousands)	Exchange rate	Book value (In thousands of NTD)		Sensitivityanalysis
				Degree of variation	Effect on profit or loss	Effect on other comprehensive income
	199,209 $ 230,186 836 55,091 84,790 $ 9,075 281,890 $ 53,597 468	28.43 0.27 3.64 4.35 28.48 3.67 28.53 0.28 3.70	5,663,512 $ 62,150 3,034 239,646 2,414,819 $ 33,317 8,042,322 $ 15,007 1,732	1% 1% 1% 1% - - 1% 1% 1%	56,635 $ 622 30 2,396 - - 80,423 $ 150 17	- $ - - - - - - $ - -

~45~

December 31, 2019

(Foreign currency: functional currency) Financial assets Monetary items USD JPY RMB Investments accounted for using equity method USD HKD Financial liabilities Monetary items USD JPY	Foreign currency amount (In thousands)	Exchange rate	Book value (In thousands of NTD)		Sensitivityanalysis	Sensitivityanalysis
				Degree of variation	Effect on profit or loss	Effect on other comprehensive income
	142,763 $ 181,021 54,037 72,970 $ 7,751 148,837 $ 135,897	29.93 0.27 4.28 29.98 3.85 30.03 0.28	4,727,897 $ 48,876 231,278 2,187,631 $ 29,836 4,469,575 $ 38,051	1% 1% 1% - - 1% 1%	42,729 $ 489 2,313 - - 44,696 $ 381	- $ - - - - - $ -

• iii. The total exchange gain, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2020 and 2019, amounted to $98,148 and $35,905, respectively.

• (b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. According to the Company’s credit policy, the Company is responsible for managing and analysing the credit risk for each of their clients. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. The utilisation of credit limits is regularly monitored. Credit risk arises from credit exposures to customers, including outstanding receivables.

• ii. The Company adopts the following assumptions to assess whether there has been a significant increase in credit risk on that instrument since initial recognition:

  • (i) If the contract payments were past due over 30 days based on the terms, there has been a significant increase in credit risk on that instrument since initial recognition.

  • (ii) If any external credit rating agency rates these bonds as investment grade, the credit risk of these financial assets is low.

• iii. The default occurs when the contract payments are past due over 60 days.

• iv. The Company classifies customer’s accounts receivable in accordance with the credit rating of the customer. The Company applies the modified approach using a provision matrix to estimate the expected credit loss.

• v. The Company wrote-off the financial assets, which cannot be reasonably expected to be

~46~

recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights.

• vi. The Company used the forecastability to adjust historical and timely information to assess the default possibility of accounts receivable. Please refer to Note 6(4) for details of the provision matrix and movements in loss allowance for the years ended December 31, 2020 and 2019.

• (c) Liquidity risk

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

• ii. Except for those listed in the table below, the Company’s non-derivative financial liabilities will expire within 1 year. As of December 31, 2020 and 2019, the cash flows within 1 year of short-term borrowings, short-term notes and bills payable, notes payable, accounts payable (including related parties) and other payables are undiscounted and are in agreement with the balance of each account in the balance sheet.

December 31, 2020 Non-derivative financial liabilities: Lease liabilities December 31, 2019 Non-derivative financial liabilities: Lease liabilities	Less than 1year $413 Less than 1year $ 878	Between 2 and 5 years $ 356 Between 2 and 5 years $123	Over5 years
			- $
			Over5 years
			- $

• iii. The Company 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. An active market refers to a market in which

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transactions for an asset or liability take place with enough frequency and volume to provide pricing information on an ongoing basis. The fair value of the Company’s investment in listed stocks and OTC stocks is included in Level 1.

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

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

• B. Financial and non-financial instruments measured at fair value

• (a) The related information on financial and non-financial instruments measured at fair value by level based on the nature, characteristics and risks of the assets and liabilities are as follows:

December 31, 2020 Level 1 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Listed stocks 14,626 $ Financial assets at fair value through other comprehensive income Listed stocks 858,283 Emerging stocks 573 Unlisted stocks - 873,482 $ December 31, 2019 Level 1 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Listed stocks 32,196 $ Financial assets at fair value through other comprehensive income Listed stocks 666,941 Emerging stocks 490 Unlisted stocks - 699,627 $	Level 2 - $ - - - - $ Level 2 - $ - - - - $	Level3 - $ - - 46,111 46,111 $ Level3 - $ - - 46,111 46,111 $	Total
			14,626 $ 858,283 573 46,111
			919,593 $
			Total
			32,196 $ 666,941 490 46,111
Financial assets at fair value through profit or loss Listed stocks Financial assets at fair value through other comprehensive income Listed stocks Emerging stocks Unlisted stocks
			745,738 $

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

• i. For the instruments the Company used market quoted prices as their fair values (that is, Level 1), the Company uses the closing price as market quoted price.

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• 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 parent company only balance sheet date.

• iii. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Company’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 etc. In accordance with the Company’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 parent company only balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

• iv. The Group considers 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.

• C. As of December 31, 2020 and 2019, there was no transfer between Level 1 and Level 2.

• D. As of December 31, 2020 and 2019, there was no transfer into or out from Level 3.

• E. Investment segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating, updating inputs used to the valuation model and making any other necessary adjustments to the fair value.

• F. 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:

value measurement:
Non-derivative equity instrument: Unlisted shares		Fair value at December 31, 2020	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
		46,111 $	Net asset value	Not applicable	Not applicable	Not applicable

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Non-derivative equity instrument: Unlisted shares Unlisted shares		Fair value at December 31, 2019	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
		27,500 $ 18,611 46,111 $	Most recent non-active market price Net asset value	Not applicable Not applicable	Not applicable Not applicable	Not applicable Not applicable

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: None.

• 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 4.

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 5.

• I. Trading in derivative instruments undertaken during the reporting periods: None.

• J. Significant inter-company transactions during the reporting periods: Please refer to table 6.

• (2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 7.

(3) Information on investments in Mainland China

• A. Basic information: Please refer to table 8.

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

(4) Major shareholders information

The Company has no shareholders with a shareholding ratio above 5%.

14. SEGMENT INFORMATION

None.

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Zenitron Corporation

Loans to others

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

Year ended December 31, 2020

Amount of transactions with the borrower (Note 5) Reason for short- term financing (Note 6) Allowance for doubtful accounts Maximum outstanding balance during the year ended December 31, 2020 (Note 3) Balance at December 31, 2020(Note 8) Actual amount drawn down Interest rate Nature of loan (Note 4) No. (Note 1) Creditor Borrower General ledger account (Note 2) Is a related party	Collateral	Limit on loans granted to a single party (Note 7)	Ceiling on total loans granted (Note 7)	Footnote
	Item Value
0 Zenitron Coporation ZTHC (Shanghai) Co., Ltd. Other receivables Yes $ 749,450 $ 609,280 $ 217,600 2.50% 2 - $ Operating capital - $ 1 ZTHC (Shanghai) Co., Ltd. Zenitron (Shanghai) International Trading Co., Ltd. Other receivables Yes 87,600 87,600 - - 2 - Operating capital - 1 ZTHC (Shanghai) Co., Ltd. Zenitron (Shenzhen) Technology Co., Ltd. Other receivables Yes 262,800 262,800 109,500 2.50% 2 - Operating capital - 2 Shanghai Zenitron Electronic Trading Co., Ltd Zenitron (Shanghai) International Trading Co., Ltd. Other receivables Yes 52,560 52,560 43,800 4.35% 2 - Operating capital - 3 Yo-Teh Investment Corporation Raytronic Corporation Other receivables Yes 20,000 - - - 2 - Operating capital -	- - $ - - - - - - - -	$ 1,920,623 652,676 652,676 179,198 23,070	$ 1,920,623 652,676 652,676 179,198 23,070

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 name of account in which the loans are recognised, such as receivables–related parties, current account with stockholders, prepayments, temporary payments, etc.

• Note 3: The maximum outstanding balance of loans to others for the year.

• Note 4: The nature of the loan as follows:

(1)‘1’ for business transaction.

(2)‘2’ for short-term financing.

• Note 5: The amount of business transactions when nature of the loan is 1, which is the amount of business transactions occurred between the creditor and borrower in the current year.

• Note 6: Purpose of loan when nature of loan is 2, for example, repayment of loan, acquisition of equipment, working capital, etc.

• Note 7: Limit on loans granted to a single party and ceiling on total loans granted as prescribed in the creditor company’s “Procedures for Provision of Loans”, the calculation and amount are as follows:

• (1) Limit on loans granted to a single party is 40% of the creditor company’s net assets based on the latest financial statements.

• (2) Ceiling on total loans granted is 40% of the creditor company’s net assets based on the latest financial statements.

• (3) Limit on loans granted between foreign companies which the Company directly or indirectly holds 100% of their voting shares is 200% of the creditor company’s net assets based on the latest financial statements.

• Note 8: The amounts of funds to be loaned to others which have been approved by the board of directors of a public company in accordance with Article 14, Item 1 of the “Regulations Governing Loaning of Funds and Making of

• Endorsements/Guarantees by Public Companies” should be included in its published balance of loans to others at the end of the reporting period to reveal the risk of loaning the public company bears, even though they have not yet been appropriated.

• However, this balance should exclude the loans repaid when repayments are done subsequently to reflect the risk adjustment. In addition, if the board of directors of a public company has authorized the chairman to loan funds in instalments

or in revolving within certain lines and within one year in accordance with Article 14, Item 2 of the “Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies”,

the published balance of loans to others at the end of the reporting period should also include these lines of loaning approved by the board of directors, and these lines of loaning should not be excluded from this balance even though the loans are repaid subsequently, for taking into consideration they could be loaned again thereafter.

Zenitron Corporation

Expressed in thousands of NTD (Except as otherwise indicated)

Provision of endorsements and guarantees to others

Year ended December 31, 2020

Table 2

Number (Note 1) Endorser/ guarantor	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party (Note 3)	Maximum outstanding endorsement/ guarantee amount as of December 31, 2020 (Note 4)	Outstanding endorsement/ guarantee amount at December 31, 2020 (Note 5)	Actual amount drawn down (Note 6)	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/guarantor company	Ceiling on total amount of endorsements/ guarantees provided (Note 3)	Provision of endorsements/ guarantees by parent company to subsidiary (Note 7)	Provision of endorsements/ guarantees by subsidiary to parent company (Note 7)	Provision of endorsements/ guarantees to the party in Mainland China (Note 7)	Footnote
	Companyname Relationship with the endorser/ guarantor (Note2)
0 Zenitron Coporation 0 Zenitron Coporation 0 Zenitron Coporation 0 Zenitron Coporation	Zenitron (HK) Limited 3 Zenitron (Shenzhen) Technology Co., Ltd. 3 Zenitron (Shanghai) International Trading Co., Ltd. 3 ZTHC (Shanghai) Co., Ltd. 3	7,202,337 $ 7,202,337 7,202,337 7,202,337	2,109,080 $ 538,160 658,929 462,200	2,086,640 $ 536,600 657,060 455,580	997,208 $ 158,856 294,079 -	- $ - - -	43.46% 11.18% 13.68% 9.49%	7,202,337 $ 7,202,337 7,202,337 7,202,337	Y Y Y Y	N N N N	N Y Y Y

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 six categories; fill in the number of category each case belongs to: (1) Having business relationship.

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

(3) The endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/ guaranteed company.

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

(5) Mutual guarantee of the trade as required by the construction contract.

(6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

Note 3: The calculation for and amount of limit on endorsements/guarantees are as follows: (If any contingent loss is recognised in the financial statements, the recognised amount should be indicated)

(1) Limit on endorsements/guarantees provided for a single party is 150% of the Company’s net assets.

(2) Ceiling on total amount of endorsements/guarantees is 150% of the Company's net assets.

Note 4: The year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.

Note 5: Once endorsement/guarantee contracts or promissory notes are signed/issued by the endorser/guarantor company to the banks, the endorser/guarantor company bears endorsement/guarantee liabilities. And all other events involve endorsements and guarantees should be included in the balance of outstanding endorsements and guarantees.

Note 6: The actual amount of endorsements/guarantees used by the endorsed/guaranteed company.

Note 7:‘Y’ for those cases of provision of endorsements/guarantees by listed parent company to subsidiary and provision by subsidiary to listed parent company, and provision to the party in Mainland China.

Table 3

Expressed in NTD

Zenitron Corporation

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

December 31, 2020

(Except as otherwise indicated)

As of December 31, 2020

Securities held by	Marketable securities(Note 1)	Relationship with the securities issuer (Note 2)	General ledger account	Number of shares (Share/Unit)	Book value (Note 3)	Ownership (%)	Fair value	Footnote (Note 4)
Zenitron Corporation Zenitron Corporation Zenitron Corporation Zenitron Corporation Zenitron Corporation Zenitron Corporation Zenitron Corporation Zenitron Corporation Zenitron Corporation Zenitron Corporation Zenitron Corporation Raytronic Corporation Raytronic Corporation Raytronic Corporation Yo-Teh Investment Corporation Yo-Teh Investment Corporation Supertronic International Corp	Stock Tong Yang Industry Co., Ltd. Stock Yeong Guan Group Stock TrueLight Corporation Stock Cyber Power Systems, Inc. Stock LuxNet Corporation Stock Casetek Holdings Limited Stock ADLINK TECHNOLOGY INC. Stock Orient Pharma Co., Ltd. Stock NU INC. Stock Quadlink Technology Inc. Stock MEAN WELL ENTERPRISES CO., LTD. Stock Yeong Guan Group Stock ICHIA TECHNOLOGIES, INC. Stock Orient Pharma Co., Ltd. Stock Tong Yang Industry Co., Ltd. Stock WISECHIP SEMICONDUCTOR INC. Stock Capital Investment Development Corp.	- - - - - - - - - - - - - - - - -	Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through other comprehensive income 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 Non-current financial assets at fair value through other comprehensive income Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Current financial assets at fair value through profit or loss Non-current financial assets at fair value through other comprehensive income	44,000 93,834 7,000 16,000 16,291 34,439 13,537,592 39,462 1,136,364 500,000 100,000 51,087 165,000 17,454 20,000 58,103 2,000,000	1,716,000 $ 7,731,922 311,850 1,420,800 439,042 3,006,525 858,283,333 572,988 8,610,838 10,000,000 27,500,000 4,209,569 3,052,500 253,432 780,000 2,385,128 49,783,496	0.01 0.08 0.01 0.02 0.01 0.01 6.22 0.02 7.89 3.62 0.07 0.05 0.05 0.01 0.00 0.13 3.57	1,716,000 $ 7,731,922 311,850 1,420,800 439,042 3,006,525 858,283,333 572,988 8,610,838 10,000,000 27,500,000 4,209,569 3,052,500 253,432 780,000 2,385,128 49,783,496

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities within the scope of IFRS 9 ‘Financial instruments’.

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

Note 3: Fill in the amount after adjusted at fair value and deducted by accumulated impairment for the marketable securities measured at fair value; fill in the acquisition cost or amortised cost deducted by accumulated impairment for the marketable securities not measured at fair value.

Note 4: The number of shares of securities and their amounts pledged as security or pledged for loans and their restrictions on use under some agreements should be stated in the footnote if the securities presented herein have such conditions.

Table 4

Expressed in thousands of NTD (Except as otherwise indicated)

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

Purchaser/seller	Counterparty	Relationship with the counterparty (Note 2)			Transaction		Differences in transaction terms compared to third party transactions (Note 1)	Differences in transaction terms compared to third party transactions (Note 1)	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote (Note 3)
			Purchases (sales)	Amount	Percentage of total purchases(sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Zenitron Coporation Zenitron (HK) Limited Zenitron Coporation Zenitron (Shanghai) International Trading Co., Ltd. Zenitron Coporation Zenitron (Shenzhen) Technology Co., Ltd. Zenitron (HK) Limited Zenitron (Shenzhen) Technology Co., Ltd. Zenitron (HK) Limited Zenitron (Shanghai) International Trading Co., Ltd. Zenitron (HK) Limited Zenitron Coporation	Zenitron (HK) Limited Zenitron Coporation Zenitron (Shanghai) International Trading Co., Ltd. Zenitron Coporation Zenitron (Shenzhen) Technology Co., Ltd. Zenitron Coporation Zenitron (Shenzhen) Technology Co., Ltd. Zenitron (HK) Limited Zenitron (Shanghai) International Trading Co., Ltd. Zenitron (HK) Limited Zenitron Coporation Zenitron (HK) Limited	1 2 1 2 1 2 3 3 3 3 2 1	Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases Sales Purchases	($ 7,259,607) 7,259,607 ( 402,271) 402,271 ( 212,346) 212,346 ( 526,494) 526,494 ( 565,070) 565,070 ( 242,132) 242,132	(36) 40 (2) 33 (1) 25 (3) 63 (3) 46 (1) 1	Approximately 60~90 days after monthly billings Approximately 60~90 days after monthly billings Approximately 60~90 days after monthly billings Approximately 60~90 days after monthly billings Approximately 60~90 days after monthly billings Approximately 60~90 days after monthly billings Approximately 60~90 days after monthly billings Approximately 60~90 days after monthly billings Approximately 60~90 days after monthly billings Approximately 60~90 days after monthly billings Approximately 60~90 days after monthly billings Approximately 60~90 days after monthly billings	Selling price is based on initial cost plus necessary profit Approximately the same as the normal price Selling price is based on initial cost plus necessary profit Approximately the same as the normal price Selling price is based on initial cost plus necessary profit Approximately the same as the normal price Selling price is based on initial cost plus necessary profit Approximately the same as the normal price Selling price is based on initial cost plus necessary profit Approximately the same as the normal price Selling price is based on initial cost plus necessary profit Approximately the same as the normal price	Approximately 30~120 days after monthly billings for third parties Approximately 10~75 days after monthly billings for third parties Approximately 30~120 days after monthly billings for third parties Approximately 10~75 days after monthly billings for third parties Approximately 30~120 days after monthly billings for third parties Approximately 10~75 days after monthly billings for third parties Approximately 30~120 days after monthly billings for third parties Approximately 10~75 days after monthly billings for third parties Approximately 30~120 days after monthly billings for third parties Approximately 10~75 days after monthly billings for third parties Approximately 30~120 days after monthly billings for third parties Approximately 10~75 days after monthly billings for third parties	1,065,084 $ ( 1,065,084) 48,040 ( 48,040) 28,009 ( 28,009) 52,296 ( 52,296) 62,580 ( 62,580) 25,170 ( 25,170)	19 (39) 1 (27) 1 (31) 1 (57) 2 (35) 1 (1)

Note 1: If terms of related-party transactions are different from third-party transactions, explain the differences and reasons in the ‘Unit price’ and ‘Credit term’ columns.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to:

(1) Parent company to subsidiary.

(2) Subsidiary to parent company.

(3) Subsidiary to subsidiary.

Note 3: In case related-party transaction terms involve advance receipts (prepayments) transactions, explain in the footnote the reasons, contractual provisions, related amounts, and differences in types of transactions compared to third-party transactions. Note 4: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20 % of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Zenitron Corporation

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

Year ended December 31, 2020

Table 5 Creditor	Counterparty	Relationship with the counterparty (Note 2)	Balance as at December 31, 2020 (Note 1)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date Allowance for doubtful accounts Expressed in thousands of NTD (Except as otherwise indicated)	Amount collected subsequent to the balance sheet date Allowance for doubtful accounts Expressed in thousands of NTD (Except as otherwise indicated)
					Amount	Action taken
Accounts receivable Zenitron Coporation Other receivables Zenitron Coporation ZTHC (Shanghai) Co., Ltd.	Zenitron (HK) Limited ZTHC (Shanghai) Co., Ltd. Zenitron (Shenzhen) Technology Co., Ltd.	1 1 3	1,065,084 $ 217,600 109,371	9.56 - -	- $ - -	- - -	503,313 $ - -	- $ - -

Note 1: Fill in separately the balances of accounts receivable–related parties, notes receivable–related parties, other receivables–related parties….

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to

(1) Parent company to subsidiary.

• (2) Subsidiary to parent company.

(3) Subsidiary to subsidiary.

Note 3: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20 % of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Zenitron Corporation

Table 6

Expressed in thousands of NTD

Significant inter-company transactions during the reporting period

Year ended December 31, 2020

(Except as otherwise indicated)

Transaction

						Transaction
Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0 0 0 0 0 0 0 1 1 1 1 1 1 2	Zenitron Coporation Zenitron Coporation Zenitron Coporation Zenitron Coporation Zenitron Coporation Zenitron Coporation Zenitron Coporation Zenitron (HK) Limited Zenitron (HK) Limited Zenitron (HK) Limited Zenitron (HK) Limited Zenitron (HK) Limited Zenitron (HK) Limited ZTHC (Shanghai) Co., Ltd.	Zenitron (HK) Limited Zenitron (HK) Limited Zenitron (Shanghai) International Trading Co., Ltd. Zenitron (Shanghai) International Trading Co., Ltd. Zenitron (Shenzhen) Technology Co., Ltd. Zenitron (Shenzhen) Technology Co., Ltd. ZTHC (Shanghai) Co., Ltd. Zenitron Coporation Zenitron Coporation Zenitron (Shenzhen) Technology Co., Ltd. Zenitron (Shenzhen) Technology Co., Ltd. Zenitron (Shanghai) International Trading Co., Ltd. Zenitron (Shanghai) International Trading Co., Ltd. Zenitron (Shenzhen) Technology Co., Ltd.	1 1 1 1 1 1 1 2 2 3 3 3 3 3	Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Other receivables Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Other receivables	$ 7,259,607 1,065,084 402,271 48,040 212,346 28,009 217,600 242,132 25,170 526,494 52,296 565,070 62,580 109,371	Selling price has no obvious difference from the third parties 60~90 days after monthly billings Selling price has no obvious difference from the third parties 60~90 days after monthly billings Selling price has no obvious difference from the third parties 60~90 days after monthly billings In accordance with mutual agreements Selling price has no obvious difference from the third parties 60~90 days after monthly billings Selling price has no obvious difference from the third parties 60~90 days after monthly billings Selling price has no obvious difference from the third parties 60~90 days after monthly billings In accordance with mutual agreements	21 6 1 0 1 0 1 1 0 2 0 2 0 1

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

• (1) Parent company is ‘0’.

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

Note 2: Relationship between transaction company and counterparty is classified into the following three categories; fill in the number of category each case belongs to:

(1) Parent company to subsidiary.

• (2) Subsidiary to parent company.

• (3) Subsidiary to subsidiary.

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

Note 4: The Company may decide to disclose or not to disclose transaction details in this table based on the Materiality Principle.

Zenitron Corporation

Information on investees

Year ended December 31, 2020

Table 7

Expressed in thousands of NTD

Table 7						Expressed in thousands of NTD	Expressed in thousands of NTD
Investor Investee (Notes 1 and 2) Location Main business activities	Initial investment amount		Shares held as at December 31,2020		Net profit (loss) of the investee for the year ended December 31, 2020 (Note 2(2))	(Except as otherwise indicated) Investment income recognised by the Company for the year ended Footnote
	Balance as at December 31,2020	Balance as at December 31,2019	Number of shares (in thousand)	Ownership (%) Book value
Zenitron Coporation Raytronic Corporation Taiwan Trading of electronic components and assembly Zenitron Coporation Zenitron (HK) Limited Hong Kong Trading of electronic components and assembly Zenitron Coporation Supertronic International Corp. B. V. I. Reinvested holding company Zenitron Coporation Yo-Teh Investment Corporation Taiwan Reinvested holding company Supertronic International Corp. Zenitron (HK) Limited Hong Kong Trading of electronic components and assembly Supertronic International Corp. Zenicom (HK) Limited Hong Kong Trading of electronic components and assembly	$ 55,854 2,008 618,023 84,167 471,639 92,780	$ 55,854 2,008 618,023 185,000 471,639 92,780	1,520 510 18,704 7,700 34,272 23,800	100.00 $ 30,475 1.47 33,316 100.00 2,414,819 100.00 57,676 98.53 2,233,123 100.00 87,490	$ 2,321 302,614 301,241 47,832 302,614 348	$ 2,321 4,448 301,241 47,832 298,166 348	Subsidiary Second-tier subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

Note 1: If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules, it can only disclose the information of the overseas holding company about the disclosure of related overseas investee information.

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

(1) The columns of ‘Investee’, ‘Location’, ‘Main business activities’, Initial investment amount’ and ‘Shares held as at December 31, 2020’ should fill orderly in the Company’s (public company’s) information on investees and

every directly or indirectly controlled investee’s investment information, and note the relationship between the Company (public company) and its investee each (ex. direct subsidiary or indirect subsidiary) in the ‘footnote’ column.

(2) The ‘Net profit (loss) of the investee for the year ended December 31, 2020’ column should fill in amount of net profit (loss) of the investee for this period.

(3) The ‘Investment income (loss) recognised by the Company for the year ended December 31, 2020’ column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised investment income (loss) of its direct subsidiary, the Company (public company) should confirm that direct subsidiary’s net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations.

Zenitron Corporation

Information on investments in Mainland China

Year ended December 31, 2020

Table 8

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 January1,2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2020	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the year ended December 31,2020	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2020	Net income (loss) of investee for the year ended December 31, 2020	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31, 2020 (Note 2)	Book value of investments in Mainland China as of December 31, 2020	Accumulated amount of investment income remitted back to Taiwan as of December 31, 2020	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Zenitron (Shanghai) International Trading Co., Ltd. ZTHC (Shanghai) Co., Ltd. Zenitron (Shenzhen) Technology Co., Ltd. Shanghai Zenitron Electronic Trading Co., Ltd.	Trading of electronic components and assembly Selling computer memory equipment and related components and providing technical support Trading of electronic components and assembly Trading of electronic components and assembly	$ 157,730 116,601 93,080 94,760	(2) (2) (2) (2)	$ 97,270 116,601 32,620 -	- $ - - -	- $ - - -	$ 97,270 116,601 32,620 -	$ 16,589 48,087 14,044 524	100.00 100.00 100.00 100.00	$ 16,589 48,087 14,044 524	181,056 $ 326,338 68,438 89,599	- $ - - -

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2020	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs(MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Zenitron Corporation	246,491 $	443,484 $	2,880,935 $

Note 1: Investment methods are classified into the following three categories; fill in the number of category each case belongs to:

(1) Directly invest in a company in Mainland China.

(2) Through investing in Zenitron (HK) Limited, an existing company in the third area, which then invested in the investee in Mainland China.

(3) Others

Note 2: Basis for investment income (loss) recognition is the financial statements that are audited and attested by R.O.C. parent company’s CPA. Note 3: The numbers in this table are expressed in New Taiwan Dollars.

ZENITRON CORPORATION STATEMENT OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Statement 1

Statement 1
Item Cash on hand and revolving funds Cash in banks Checking accounts Demand deposits - NTD Demand deposits - foreign currency	Description		Amount
	USD 8,037 thousand Exchange rate 28.43 JPY 136,323 thousand Exchange rate 0.27 HKD 641 thousand Exchange rate 3.64 RMB 5,091 thousand Exchange rate 4.35		192 $ 47,355 224,981 228,487 37,394 2,335 22,155 562,899 $

Statement 1, Page 1

ZENITRON CORPORATION

CURRENT FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME DECEMBER 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Statement 2

Statement 2
Name of Financial Instrument	Description	Shares in thousands/thousand units	Face Value	Total Amount	Interest Rate	Cost	Fair Value		Note
							Unit Price (in dollars)	Total Amount
Listed stocks Emerging stocks	ADLINK TECHNOLOGY INC. Orient Pharma Co., Ltd.	13,538 39	10 $ 10	858,283 $ 573	- -	347,990 $ 2,462 350,452 $	63.40 $ 14.52	858,283 $ 573 858,856 $

Statement 2, Page 1

ZENITRON CORPORATION STATEMENT OF ACCOUNTS RECEIVABLE DECEMBER 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Statement 3 Client Name		Amount	Note
Non-related parties Company A Others Less: Allowance for uncollectible accounts	720,577 $ 3,707,440 4,428,017 70,556) ( 4,357,461 $		Balance of each client has not exceeded 5% of total account balance

Statement 3, Page 1

ZENITRON CORPORATION STATEMENT OF INVENTORIES DECEMBER 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Statement 4

Statement 4
Item		Amount			Note
		Cost		Net Realizable Value
Merchandise Inventory in transit Less: Allowance for market value decline and loss on obsolete and slow-moving inventories		4,175,374 $ 346,610 4,521,984 224,747) ( 4,297,237 $		3,950,627 $ 346,610 4,297,237 $

Statement 4, Page 1

ZENITRON CORPORATION

STATEMENT OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Statement 5

Statement 5
Name of Investee	Beginning	Balance	Addition		Decrease		EndingBalance			Market Value or Net Assets Value		Collateral	Note
	Shares (inthousands)	Amount	Shares (inthousands)	Amount (Note1)	Shares (inthousands)	Amount (Note2)	Shares (inthousands)	Percentage of Ownership	Amount	UnitPrice	Total Amount
Supertronic International Corp. Zenitron (HK) Limited Yo-Teh Investment Corporation Raytronic Corporation	18,704 510 17,783 1,520	2,187,631 $ 29,836 111,749 28,154 2,357,370 $	- - - -	227,188 $ 3,480 47,832 2,321 280,821 $	- - 10,083) ( -	- $ - 101,905) ( -	18,704 510 7,700 1,520	100% 1.47% 100% 100%	2,414,819 $ 33,316 57,676 30,475	129.11 $ 65.33 7.49 20.00	2,414,819 $ 33,316 57,676 30,475 2,536,286 $	None " " "
						101,905) ($			2,536,286 $

Note 1: It included exchange differences on translation of financial statements and share of profit or loss or other comprehensive income of subsidiaries accounted for using the equity method. Note 2: It referred to cash dividends distributed by the subsidiaries and proceeds from capital reduction.

Statement 5, Page 1

ZENITRON CORPORATION STATEMENT OF SHORT-TERM BORROWINGS DECEMBER 31, 2020

(Expressed in thousands of New Taiwan Dollars)

STATEMENT 6

STATEMENT 6
Creditor	Description	EndingBalance	Contract Period	Range of Interest Rate	Credit Line	Collateral	Note
Hua Nan Bank Bank SinoPac Taiwan Cooperative Bank Taiwan Business Bank Yuanta Bank Land Bank of Taiwan Cathay United Bank SCSB Bank of Taiwan Mega International Commercial Bank Taichung Commercial Bank Taipei Fubon Bank E.SUN Bank Bank of Panhsin Taishin Bank Shin Kong Bank Jih Sun Bank Bank of Kaohsiung First Commercial Bank EnTie Bank Far Eastern International Bank	Unsecured borrowings 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	730,530 $ 567,535 542,070 456,480 450,000 388,193 342,360 340,628 318,147 283,703 274,765 244,282 234,629 227,355 223,319 185,445 150,000 150,000 127,653 100,000 44,285 6,381,379 $	2020/10/13~2021/03/10 2020/12/10~2021/01/25 2020/09/15~2021/03/21 2020/09/30~2021/04/27 2020/12/04~2021/03/26 2020/09/30~2021/06/11 2020/12/25~2021/01/25 2020/08/14~2021/06/08 2020/11/17~2021/03/17 2020/12/30~2021/03/30 2020/10/12~2021/05/14 2020/10/20~2021/06/08 2020/11/26~2021/06/18 2020/10/08~2021/06/08 2020/09/21~2021/03/19 2020/12/30~2021/06/28 2020/11/16~2021/02/05 2020/12/07~2021/03/30 2020/11/20~2021/05/19 2020/10/14~2021/01/12 2020/10/22~2021/02/19	Note 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	1,200,000 $ 750,000 800,000 512,000 600,000 400,000 360,000 360,000 500,000 600,000 400,000 330,000 500,000 300,000 400,000 200,000 300,000 300,000 700,000 300,000 500,000	Note 8 None 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞	Undrawn secured borrowing facilities 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞 〞

Note: Range of interest rate of the Company’s borrowings was 0.64%~1.21%.

STATEMENT 6, Page 1

ZENITRON CORPORATION STATEMENT OF ACCOUNTS PAYABLE DECEMBER 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Statement 7

Statement 7
Supplier Name	Description		Amount	Note
Non-related parties Company A Company B Company C Company D Company E Others			752,075 $ 583,386 320,379 147,412 141,438 561,954 2,506,644 $	Balance of each client has not exceeded 5% of total account balance

Statement 7, Page 1

ZENITRON CORPORATION STATEMENT OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Statement 8 Item	Volume(in thousands)		Amount	Note
Sales revenue Memory cards Linear integrated circuit Digital integrated circuit Power field effect transistors Logic integrated circuit Module Others Net operating revenue	38,140 471,651 134,859 797,673 47,101 1,416 2,393,572		8,779,188 $ 3,043,065 2,377,501 1,706,660 1,253,233 473,524 2,495,034 20,128,205 $

Statement 8, Page 1

ZENITRON CORPORATION STATEMENT OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Statement 9

Statement 9
Item			Amount
Beginning inventory		$	2,596,446
Add: Net purchases for the year			21,378,823
Processing fees			10,764
Less: Ending inventory	(		4,521,984)
Obsolete and slow-moving inventory sold	(		41,703)
Transferred to operating expenses	(		5,587)
Cost of goods sold			19,416,759
Loss on decline in market value			62,966
		$	19,479,725

Statement 9, Page 1

ZENITRON CORPORATION STATEMENT OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Statement 10

Statement 10
Item Wages and salaries Export (customs) expense Depreciation expense Other expenses	Selling 251,859 $ 47,457 2,319 120,350 421,985 $	Administrative 102,839 $ - 12,063 89,272 204,174 $	Total 354,698 $ 47,457 14,382 209,622 626,159 $	Note
				Balance of each account has not exceeded 5% of total account balance

Statement 10, Page 1