ZENITRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT JUNE 30, 2021 AND 2020

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

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INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

To the Board of Directors and Shareholders of Zenitron Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Zenitron Corporation and subsidiaries (the “Group”) as at June 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three months and six months then ended, as well as the related consolidated statements of changes in equity and of cash flows for the six months then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of review

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

Basis for qualified conclusion

As explained in Note 4(3)B, the financial statements of certain insignificant consolidated subsidiaries were not reviewed by independent auditors. Total assets of these subsidiaries amounted to NT$2,173,853 thousand and NT$1,993,045 thousand, constituting 11% and 13% of the consolidated total assets as at June 30, 2021 and 2020, respectively, total liabilities amounted to NT$1,167,521 thousand and NT$884,291 thousand, both constituting 8% of the consolidated total liabilities as at June 30, 2021 and 2020, respectively, and the total comprehensive (loss) income amounted to (NT$6,670) thousand, NT$21,325 thousand, (NT$2,823) thousand and (NT$17,736) thousand, constituting (4)%, 7%, (1)% and (2.8)% of the consolidated total comprehensive income for the three months and six months then ended, respectively.

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Qualified conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries been reviewed by independent auditors as described in the Basis for qualified conclusion section above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at June 30, 2021 and 2020, and of its consolidated financial performance for the three months and six months then ended and its consolidated cash flows for the six months then ended in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

Chen, Chin-Chang Yi-Fan Lin

For and on behalf of PricewaterhouseCoopers, Taiwan August 13, 2021

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

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 AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

JUNE 30, 2021, DECEMBER 31, 2020 AND JUNE 30, 2020

(Expressed in thousands of New Taiwan Dollars) (The balance sheets as of June 30, 2021 and 2020 are reviewed, not audited)

			June 30, 2021			December 31, 2020	December 31, 2020		June 30, 2020
Assets	Notes		AMOUNT	%		AMOUNT	%		AMOUNT	%
Current assets
Cash and cash equivalents	6(1)	`$`	`1,423,881`		`8 $`	`1,676,223`	`9`	`$`	`1,280,430`	`8`
Financial assets at fair value through	6(2)
profit or loss - current			`15,223`		`-`	`25,307`	`-`		`20,520`	`-`
Financial assets at fair value through	6(3)
other comprehensive income -
current			`736`		`-`	`858,856`	`4`		`1,126,096`	`7`
Notes receivable, net	6(4)		`311,589`		`2`	`220,785`	`1`		`187,534`	`1`
Accounts receivable, net	6(4)		`9,010,872`	`47`		`9,146,660`	`47`		`6,543,255`	`43`
Other receivables			`71,184`		`-`	`100,253`	`1`		`53,223`	`-`
Inventories, net	6(5)		`6,473,677`	`34`		`6,377,512`	`33`		`5,299,917`	`35`
Other current assets			`130,053`		`1`	`84,546`	`1`		`115,513`	`1`
Total current assets			`17,437,215`	`92`		`18,490,142`	`96`		`14,626,488`	`95`
Non-current assets
Financial assets at fair value through	6(3)
other comprehensive income -
non-current			`928,688`		`5`	`95,894`	`1`		`97,905`	`1`
Property, plant and equipment	6(6)		`430,215`		`2`	`440,004`	`2`		`440,461`	`3`
Right-of-use assets	6(7)		`80,989`		`1`	`98,306`	`1`		`95,384`	`1`
Investment property, net	6(9) and 8		`36,764`		`-`	`37,036`	`-`		`37,307`	`-`
Deferred income tax assets			`61,398`		`-`	`63,504`	`-`		`52,395`	`-`
Other non-current assets	8		`65,337`		`-`	`65,291`	`-`		`64,224`	`-`
Total non-current assets			`1,603,391`		`8`	`800,035`	`4`		`787,676`	`5`
Total assets		`$`	`19,040,606`	`100 $`		`19,290,177`	`100`	`$`	`15,414,164`	`100`
			(Continued)

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ZENITRON CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

JUNE 30, 2021, DECEMBER 31, 2020 AND JUNE 30, 2020

(Expressed in thousands of New Taiwan Dollars) (The balance sheets as of June 30, 2021 and 2020 are reviewed, not audited)

Liabilities and Equity	Notes	June 30, 2021	June 30, 2020
		AMOUNT `$` `7,458,020` `649,465` `6,121` `4,811,924` `874,261` `119,246` `42,484` `99,231` `14,060,752` `114,468` `40,341` `70,313` `225,122` `14,285,874` `2,138,249` `958,734` `718,200` `684,306` `255,243` `4,754,732` `4,754,732` `$` `19,040,606`	AMOUNT `$` `5,408,722` `499,556` `7,051` `3,773,279` `527,281` `9,729` `36,075` `79,738` `10,341,431` `114,468` `58,946` `67,709` `241,123` `10,582,554` `2,138,249` `958,734` `718,200` `362,396` `654,031` `4,831,610` `4,831,610` `$` `15,414,164`	%
Current liabilities Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable 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 attributable to owners of parent Share capital Common stock Capital surplus Capital surplus Retained earnings Legal reserve Unappropriated retained earnings Other equity interest Other equity interest Total equity attributable to owners of parent Total equity Significant contingent liabilities and unrecognised contract commitments Significant subsequent events Total liabilities and equity	6(10) 6(11) 6(7) 6(7) 6(13) 6(14) 6(15) 9 11			`35` `3` `-` `25` `3` `-` `-` `1`
				`67`
				`1` `-` `1`
				`2`
				`69`
				`14` `6` `5` `2` `4`
				`31`
				`31`
				`100`

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

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ZENITRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME SIX MONTHS ENDED JUNE 30, 2021 AND 2020

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

Items	Notes	Three months ended June 30	Three months ended June 30
		2021	2020
Operating Revenue Operating Costs 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 Total non-operating income and expenses Profit before Income Tax Income tax expense Profit for the Period Other Comprehensive Income Components of other comprehensive income (loss) that will not be reclassified to profit or loss Unrealised gains from investments in equity instruments measured at fair value through other comprehensive income 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 Period Total Comprehensive Income Net profit attributable to: Owners of the parent Non-controlling interest Comprehensive income attributable to: Owners of the parent Non-controlling interest Earnings per Share (in dollars) Basic earnings per share Diluted earnings per share

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

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ZENITRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(Expressed in thousands of New Taiwan Dollars) (UNAUDITED)

Notes				Equity attributable to	owners of the parent	owners of the parent
	Share capital - common stock		Capital surplus	Retained	Earnings		Other Equity Interest
				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
6(3) 6(15) 6(3) 6(3) 6(15) 6(3)	`$` `2,138,249` `-` `-` `-` `-` `-` `-` `-` `$` `2,138,249` `$` `2,138,249` `-` `-` `-` `-` `-` `$` `2,138,249`	`$` `965,034` `-` `-` `-` `-` `-` `(` `6,300 )` `-` `$` `958,734` `$` `958,734` `-` `-` `-` `-` `-` `$` `958,734`		`$` `695,154` `-` `-` `-` `23,046` `-` `-` `-` `$` `718,200` `$` `718,200` `-` `-` `-` `-` `-` `$` `718,200`	`$` `390,067` `190,499` `-` `190,499` `(` `23,046 )` `(` `207,600 )` `-` `12,476` `$` `362,396` `$` `643,662` `438,591` `-` `438,591` `(` `406,300 )` `8,353` `$` `684,306`		`($` `90,671` `)` `-` `(` `29,216` `)` `(` `29,216` `)` `-` `-` `-` `-` `($` `119,887` `)` `($` `165,691` `)` `-` `(` `51,979` `)` `(` `51,979` `)` `-` `-` `($` `217,670` `)`	`$` `307,875` `-` `478,519` `478,519` `-` `-` `-` `(` `12,476 )` `$` `773,918` `$` `508,404` `-` `(` `27,138 )` `(` `27,138 )` `-` `(` `8,353 )` `$` `472,913`	`$` `4,405,708` `190,499` `449,303` `639,802` `-` `(` `207,600` `)` `(` `6,300` `)` `-` `$` `4,831,610` `$` `4,801,558` `438,591` `(` `79,117` `)` `359,474` `(` `406,300` `)` `-` `$` `4,754,732`

Note: The appropriations for cash dividends and cash payment from capital surplus have been resolved by the Board of Directors but have not yet been reported to the shareholders.

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

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ZENITRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(Expressed in thousands of New Taiwan Dollars)

(UNAUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Adjustments to reconcile profit (loss)
Net loss (gain) on financial assets at fair value through profit
or loss

Expected credit gain

Depreciation and amortization

Loss on disposal of property, plant and equipment

Interest expense

Interest income
Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or loss
Notes and accounts receivable
Other receivables
Inventories
Other current assets
Changes in operating liabilities
Notes and accounts payable
Other payables
Other current liabilities
Other non-current liabilities
Cash inflow generated from operations
Interest received
Interest paid
Income tax paid
Net cash flows from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other
comprehensive income
Proceeds from capital reduction of financial assets at fair value
through other comprehensive income
Proceeds from disposal of financial assets at fair value through
other comprehensive income
Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and equipment
Decrease (increase) in refundable deposits
Increase in other non-current assets
Net cash flows (used in) from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in short-term loans

Increase in short-term notes and bills payable

Payments of lease liabilities

Net cash flows used in financing activities
Effect of exchange rate changes
Net (decrease) increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period Six months ended June 30
Notes
2021
2020
$
533,292 $
224,772
6(18)
1,733 (
47,097 )
6(4)
(
11,807 ) (
11,263 )
6(20)
34,969
35,812
6(18)
186
20
6(19)
57,805
69,783
(
1,425 ) (
3,940 )
8,351
96,627
56,791
432,379
25,190
22,832
(
96,165 ) (
1,115,246 )
(
45,507 ) (
443 )
412,216
591,489
22,396 (
8,022 )
26,286
25,025
(
1,600 ) (
4,640 )
1,022,711
308,088
1,425
3,940
(
59,462 ) (
73,324 )
(
26,666 ) (
31,159 )
938,008
207,545
(
29,840 )
-
13,373
11,852
13,571
19,854
6(6)
(
2,374 ) (
4,505 )
71
91
1,070 (
290 )
(
3,201 ) (
130 )
(
7,330 )
26,872
6(24)
(
1,210,083 ) (
103,586 )
6(24)
99,959
75
6(24)
(
20,481 ) (
21,923 )
(
1,130,605 ) (
125,434 )
(
52,415 ) (
27,113 )
(
252,342 )
81,870
1,676,223
1,198,560
$
1,423,881 $
1,280,430

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

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ZENITRON CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS SIX MONTHS ENDED JUNE 30, 2021 AND 2020

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

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 and its subsidiaries (collectively referred herein as the “Group”) are primarily engaged in the sales of electrical components.

THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were reported to the Board of Directors on August 13, 2021.

APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

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

follows:
	Effective date by
	International Accounting
New Standards,Interpretations andAmendments	Standards Board
Amendments to IFRS 4, ‘Extension of the temporary exemption	January 1, 2021
from applying IFRS 9’
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16,	January 1, 2021
‘Interest Rate Benchmark Reform - Phase 2’
Amendment to IFRS 16, ‘Covid-19-related rent concessions	April 1, 2021 (Note)
beyond 30 June 2021’

Note: Earlier application from January 1, 2021 is allowed by the FSC.

Except for the following, the above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment. Amendment to IFRS 16, ‘Covid-19-related rent concessions beyond 30 June 2021’

The amendment extends the application period of the practical expedient by one year to cover COVID-19-related rent concessions that reduce only lease payments originally due on or before June 30, 2022, provided that all specified conditions are met. The original amendment covered only lease payments originally due on or before June 30, 2021.

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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 Group

New standards, interpretations and amendments endorsed by the FSC effective from 2022 are as follows:

	Effective date by
	International Accounting
New Standards,Interpretations andAmendments	Standards Board
Amendments to IFRS 3, ‘Reference to the conceptual framework’	January 1, 2022
Amendments to IAS 16, ‘Property, plant and equipment: proceeds	January 1, 2022
before intended use’
Amendments to IAS 37, ‘Onerous contracts - cost of fulfilling a	January 1, 2022
contract’
Annual improvements to IFRS Standards 2018–2020	January 1, 2022

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

(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:

New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
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 12, ‘Deferred tax related to assets and liabilities arising from a single transaction’	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, 2023

New Standards,Interpretations andAmendments

Effective date by
International Accounting
StandardsBoard

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 12, ‘Deferred tax related to assets and liabilities
arising from a single transaction’

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, 2023

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

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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2020, except for the compliance statement, basis of preparation, basis of consolidation and additional policies as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and the International Accounting Standard 34, ‘Interim financial reporting’ as endorsed by the FSC.
B. These consolidated financial statements are to be read in conjunction with the consolidated financial statements for the year ended December 31, 2020.

(2) Basis of preparation

A. Except for the following items, the consolidated 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 Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:
Basis for preparation of the current period financial statements and the 2020 consolidated financial statements is the same.
B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiaries	Main business activities		Ownership (%)		Description
			June 30,2021	December 31, 2020	June 30,2020
The Company The Company The Company	Supertronic International Corp. (Supertronic) Yo-Teh Investment Corporation (Yo-Teh) Zenicom Corporation (Zenicom)	Investment business Investment business Sales of electronic components	100.00 100.00 100.00	100.00 100.00 100.00	100.00 100.00 100.00	Note 2 Notes 1 and 2 Note 2

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==> picture [471 x 38] intentionally omitted <==

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

Ownership (%)
Name of Main business December 31,
investor Name of subsidiaries activities June 30, 2021 2020 June 30, 2020 Description
----- End of picture text -----

investor	Name of subsidiaries	activities	June 30,2021	2020 Ju	ne 30,2020	Description
The Company	Zenitron (HK) Limited	Sales of electronic	1.47	1.47	1.47	Note 2
	(Zenitron (HK))	components
Supertronic	Zenitron (HK)	Sales of electronic	98.53	98.53	98.53	Note 2
		components
Supertronic	Zenicom (HK) Limited	Sales of electronic	100.00	100.00	100.00	Note 2
	(Zenicom (HK))	components
Zenitron (HK)	Zenitron (Shanghai)	Sales of electronic	100.00	100.00	100.00	Note 2
	International Trading Co., Ltd.	components
	(Zenitron (Shanghai))
Zenitron (HK)	Zenitron (Shenzhen)	Sales of electronic	100.00	100.00	100.00	Note 2
	Technology Co., Ltd.	components
	(Zenitron (Shenzhen))
Zenitron (HK)	Shanghai Zenitron Electronic	Sales of electronic	100.00	100.00	100.00	Note 2
	Trading Co., Ltd.	components
	(Shanghai Zenitron)
Zenitron (HK)	ZTHC (Shanghai) Co., Ltd.	Sales of computer	100.00	100.00	100.00	Note 2
	(ZTHC (Shanghai))	storage device,
		providing technical
		service and sales of
		related components

Note 1: Yo-Teh, the subsidiary of the Company reduced its capital, which amounted to $100,833 on June 30, 2020.

Note 2: The individual financial statements of the Company’s consolidated subsidiaries as of June 30, 2021 and 2020 were not reviewed by independent auditors, except for Supertronic and Zenitron (HK), whose financial statements were reviewed by independent auditors.

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

(4) Employee benefits

Pensions

Defined benefit plans

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

(5) Income tax

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

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

There was no significant change in the reporting period. Please refer to Note 5 in the consolidated financial statements for the year ended December 31, 2020.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
			June 30,		2021	December 31, 2020		June30,2020
Cash on hand and revolving funds			$		307	$	944	$	366
Checking accounts and demand deposits				1,384,570		1,446,046			1,099,429
Time deposits				39,004		229,233			180,635
			$	1,423,881		1,676,223 $		$	1,280,430
A. The Group transacts with a	variety of financial institutions					all with high credit quality			to disperse
credit risk, so it expects that the		probability of counterparty default is remote.
B. The Group has no cash and	cash	equivalents pledged to others.
Financial assets at fair value through profit or				loss
		June 30,2021			December31,2020			June 30, 2020
Current items
Financial assets
mandatorily measured at
fair value through profit
or loss
Listed stocks	$			24,445	$	45,927	$		46,799
Emerging stocks				1,163		1,163			1,130
				25,608		47,090			47,929
Valuation adjustment	(			10,385)	(	21,783)	(		27,409)
	$			15,223	$	25,307	$		20,520

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

A. The Group recognised net (loss) profit amounting to ($1,051), $53,196, ($1,733) and $47,097 on financial assets at fair value through profit or loss for the three months and six months ended June 30, 2021 and 2020, respectively.
B. The Group acquired disposal proceeds amounting to $76,182 from disposing Fresco Logic Inc. in the second quarter of 2020. In accordance with the trading contract, part of the disposal proceeds amounting to US$ 303 thousand will be set aside for any pending expenses, and the remaining amount will be received by the Group one year after the trade date. The Group received the remaining amount in the second quarter of 2021, which was recognised as gain on disposal and shown as other income.
C. The Group has no financial assets at fair value through profit or loss pledged to others as collateral.
D. Information relating to financial assets at fair value through profit or loss is provided in Note 12(3).

~13~

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

June 30,2021 Current items Equity instruments Listed stocks - $ Emerging stocks 2,462 2,462 Valuation adjustment 1,726) ( 736 $ Non-current items Equity instruments Listed stocks 342,772 $ Unlisted stocks 111,277 454,049 Valuation adjustment 474,639 928,688 $	December31,2020 347,990 $ 2,462 350,452 508,404 858,856 $ - $ 95,894 95,894 - 95,894 $	June 30,2020 349,790 $ 2,388 352,178 773,918 1,126,096 $ - $ 97,905
		97,905 -
		97,905 $

A. The Group 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 $929,424, $954,750 and $1,224,001 as at June 30, 2021, December 31, 2020 and June 30, 2020, 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.
B. Aiming to adjust strategic investment, the Group reclassified investments in equity instruments amounting to $858,283 from current to non-current during the three months ended March 31, 2021, and sold stock investments at fair value amounting to $13,571 and $19,854 which resulted to a cumulative gain on disposal of $8,353 and $12,476 during the six months ended June 30, 2021 and 2020, respectively.
C. Amounts recognised in other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

		Threemonths	ended	June 30
		2021		2020
Equity instruments at fair value through other
comprehensive income
Fair value change recognised in other
comprehensive income	($	35,795)	$	195,284
Cumulative gains reclassified to retained
earnings due to derecognition	($	2,116)	($	5,975)

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Six months ended June 30
2021 2020
Equity instruments at fair value through other
comprehensive income
Fair value change recognised in other
comprehensive income ($ 27,138) $ 478,519
Cumulative gains reclassified to retained
earnings due to derecognition ($ 8,353) ($ 12,476)
----- End of picture text -----

D. The Group 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

income is provided in Note 12(3). Notes and accounts receivable
		June30,2021		December31,2020			June30,2020
Notes receivable		$	311,589	$	220,785		$	187,534
Accounts receivable		$	9,100,691	$	9,255,767		$	6,628,912
Less: Allowance for uncollectible accounts	(		89,819)	(	109,107)	(		85,657)
		$	9,010,872	$	9,146,660		$	6,543,255

A. The Group 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 Group 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:

Accounts Notes receivable receivable 8,487,495 $ 311,589 $ 420,314 - 120,538 - 72,344 - 9,100,691 $ 311,589 $ June30,2021	December	June 30, 2020	June 30, 2020
Accounts receivable 8,487,495 $ 420,314 120,538 72,344 9,100,691 $	Accounts receivable 8,688,643 $ 301,830 187,497 77,797 9,255,767 $	Accounts receivable 6,134,507 $ 325,039 89,278 80,088 6,628,912 $	Notes receivable
			187,534 $ - - -
			187,534 $

The above ageing analysis was based on past due date.

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

~15~

D. The Group adjusts historical and timely information to assess the default possibility of accounts receivable, contract assets and lease payments receivable. On June 30, 2021, December 31, 2020 and June 30, 2020, the provision matrix and loss rate methodology are as follows:

June 30, 2021 Expected loss rate Total accounts receivable December 31, 2020 Expected loss rate Total accounts receivable June 30, 2020 Expected loss rate Total accounts receivable	0.11%-0.54% 8,487,495 $ 0.11%-0.44% 8,688,643 $ 0.11%-0.44% 6,134,507 $ Notpast due Notpast due Not past due	Up to 30 dayspast due 0.11%-2.5% 420,314 $ Up to 30 dayspast due 0.11%-2.5% 301,830 $ Up to 30 dayspast due 0.11%-2.5% 325,039 $	31~90 dayspast due 0.11%-100% 120,538 $ 31~90 dayspast due 0.11%-100% 187,497 $ 31~90 dayspast due 0.11%-100% 89,278 $	Over 90 dayspast due 0.11%-100% 72,344 $ Over 90 dayspast due 0.11%-100% 77,797 $ Over 90 days past due 0.11%-100% 80,088 $	Total
					9,100,691 $
					Total
					9,255,767 $
					Total
					6,628,912 $

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

for accounts receivable are as follows:
			2021			2020
			Accountsreceivable			Accountsreceivable
At January 1		$	109,107		$	97,944
Reversal of impairment loss	(		11,807)	(		11,263)
Transfers to overdue receivables	(		6,879)			-
Write-offs			-	(		492)
Effect of foreign exchange	(		602)	(		532)
At June 30		$	89,819		$	85,657

F. As of June 30, 2021, December 31, 2020, June 30, 2020 and January 1, 2020, the balances of receivables (including notes receivable) from contracts with customers amounted to $9,412,280, $9,476,552, $6,816,446 and $7,249,849, 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.

~16~

G. Transferred financial assets that are derecognised in their entirety

The Group entered into a factoring agreement with financial institutions to sell its accounts receivable. Under the agreement, the Group is not obligated to bear the default risk of the accounts receivable but is liable for the losses incurred on any business dispute. The Group meets the condition of financial assets derecognition as it did not provide other collaterals except for issuing a promissory note equal to the facility as the collateral. The Group does not have any continuing involvement in the transferred accounts receivable. Thus, the Group derecognised the transferred accounts receivable, and the related information is as follows:

Purchaser of accounts receivable	Accounts receivable transferred (amount Amount available Interest rate of derecognised) Amount advanced for advance amount advanced 1,294,180 $ 1,294,180 $ - $ 0.85%~0.94% 376,557 376,557 - 0.85%~0.94% June 30, 2021 Accounts receivable Amount Amount Amount available Interest rate of transferred derecognised advanced for advance amount advanced 1,564,867 $ 1,564,867 $ 1,564,867 $ - $ 0.94%~1.16% 217,716 206,831 206,831 10,885 0.94%~1.16% December 31, 2020 June 30, 2020	Accounts receivable transferred (amount Amount available Interest rate of derecognised) Amount advanced for advance amount advanced 1,294,180 $ 1,294,180 $ - $ 0.85%~0.94% 376,557 376,557 - 0.85%~0.94% June 30, 2021 Accounts receivable Amount Amount Amount available Interest rate of transferred derecognised advanced for advance amount advanced 1,564,867 $ 1,564,867 $ 1,564,867 $ - $ 0.94%~1.16% 217,716 206,831 206,831 10,885 0.94%~1.16% December 31, 2020 June 30, 2020
Chang Hwa Bank Bank SinoPac Purchaser of accounts receivable Chang Hwa Bank Bank SinoPac		0.85%~0.94% 0.85%~0.94% Interest rate of amount advanced
		0.94%~1.16% 0.94%~1.16%

		June 30,	2020
Purchaser of accounts receivable Chang Hwa Bank Bank SinoPac	Accounts receivable transferred 854,353 $ 138,821	Amount derecognised 854,353 $ 131,880	Amount Amount available advanced for advance 854,353 $ - $ 131,880 6,941	Interest rate of amount advanced
				1.06%~1.9% 1.06%~1.9%

H. Transferred financial assets that are not derecognised in their entirety
(a) The Group entered into a factoring agreement with Chang Hwa Bank to sell its accounts receivable. Under the agreement, the Group transferred the entire accounts receivable and is obligated to provide partial guarantees for the default risk of the transferred accounts receivable. Therefore, the Group did not derecognise these accounts receivable. Related advance payments are recorded under short-term borrowings. As of December 31, 2020, the related information on accounts receivable that were sold but had not reached maturity is as follows:

related information on accounts receivable that were sold but had not follows:	reached maturity is as
Accounts receivable transferred Amount advanced	December31,2020
	427,312 $ USD 15,000 thousand

(b) There were no transferred financial assets that are not derecognised in their entirety on June 30, 2021 and 2020.
I. Information relating to credit risk of accounts receivable and notes receivable is provided in Note 12(2).

~17~

(5) Inventories

Inventories
Merchandise inventories Inventories in transit Merchandise inventories Inventories in transit Merchandise inventories Inventories in transit	6,474,490 $ 448,903 6,923,393 $ 6,233,422 $ 556,990 6,790,412 $ Cost Cost	449,716) ($ - 449,716) ($ 412,900) ($ - 412,900) ($ December31,2020 Allowance for valuation loss June 30, 2020 June 30,2021 Allowance for valuation loss	Bookvalue
			6,024,774 $ 448,903 6,473,677 $ Book value
			5,820,522 $ 556,990 6,377,512 $

	5,222,550 $ 425,724 5,648,274 $ Cost		Bookvalue
			4,874,193 $ 425,724
			5,299,917 $

The cost of inventories recognised as expense for the period:

Cost of goods sold Loss on decline in market value Cost of goods sold Loss on decline in market value	Threemonths ended June 30	Threemonths ended June 30
	2021 2020 9,671,067 $ 6,802,705 $ 57,941 28,746 9,729,008 $ 6,831,451 $ Six months ended June 30	2020
		6,802,705 $ 28,746
		6,831,451 $
	2021 19,598,508 $ 42,673 19,641,181 $	2020
		12,691,968 $ 19,083
		12,711,051 $

~18~

(6) Property, plant and equipment

Property, plant and equipment
Lease arrangements–lessee Land Buildings and structures Transportation equipment At January 1, 2021 Cost 252,592 $ 409,175 $ 51,828 $ Accumulated depreciation - 264,545) ( 31,918) ( 252,592 $ 144,630 $ 19,910 $ 2021 Opening net book amount as at January 1 252,592 $ 144,630 $ 19,910 $ Additions - - - Disposals - - 185) ( Depreciation charge - 3,504) ( 2,668) ( Net exchange differences - 606) ( 49) ( Closing net book amount as at June 30 252,592 $ 140,520 $ 17,008 $ At June 30, 2021 Cost 252,592 $ 408,159 $ 48,986 $ Accumulated depreciation - 267,639) ( 31,978) ( 252,592 $ 140,520 $ 17,008 $ Land Buildings and structures Transportation equipment At January 1, 2020 Cost 252,592 $ 408,193 $ 52,602 $ Accumulated depreciation - 256,041) ( 35,212) ( 252,592 $ 152,152 $ 17,390 $ 2020 Opening net book amount as at January 1 252,592 $ 152,152 $ 17,390 $ Additions - - 3,270 Disposals - - 72) ( Depreciation charge - 4,072) ( 2,557) ( Net exchange differences - 1,226) ( 71) ( Closing net book amount as at June 30 252,592 $ 146,854 $ 17,960 $ At June 30, 2020 Cost 252,592 $ 406,304 $ 53,592 $ Accumulated depreciation - 259,450) ( 35,632) ( 252,592 $ 146,854 $ 17,960 $ June 30,2021 December31,2020 Right-of-use assets: Buildings and structures 80,989 $ 98,306 $ Lease liabilities: Current 42,484 $ 40,234 $ Non-current 40,341 59,073 82,825 $ 99,307 $	Office equipment	Total
	113,366 $ 90,494) ( 22,872 $ 22,872 $ 2,374 72) ( 4,912) ( 167) ( 20,095 $ 113,930 $ 93,835) ( 20,095 $ Office equipment	826,961 $ 386,957) ( 440,004 $ 440,004 $ 2,374 257) ( 11,084) ( 822) ( 430,215 $ 823,667 $ 393,452) ( 430,215 $ Total

(7) Lease arrangements – lessee

~19~

A. The Group 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:

Buildings and structures Buildings and structures	2021 2020 10,836 $ 10,917 $ 2021 2020 21,560 $ 21,765 $ Three months ended June 30 Six months ended June 30

D. For the three months and six months ended June 30, 2021 and 2020, the additions to right-of-use assets were $1,517, $94,953, $5,891 and $95,659, respectively.
E. Except for the depreciation charge, the information on profit or loss in relation to lease contracts is as follows:

is as follows:
Items affecting profit or loss Interest expense on lease liabilities Expense on short-term leases and leases of low-value assets Items affecting profit or loss Interest expense on lease liabilities Expense on short-term leases and leases of low-value assets	Threemonths ended June 30
	2021 2020 902 $ 310 $ 3,867 3,636 Six months ended June 30	2020
	2021 1,867 $ 6,383	2020
		515 $ 7,208

F. For the three months and six months ended June 30, 2021 and 2020, the Group’s total cash outflow for leases were $15,201, $14,911, $28,731 and $29,646, respectively.
G. The Group has applied the practical expedient to “Covid-19-related rent concessions”, and recognised the gain from changes in lease payments arising from the rent concessions amounting to $132 and $1,045 by increasing other income for the six months ended June 30, 2021 and 2020, respectively.

~20~

`－` (8) Lease arrangements lessor

For the three months and six months ended June 30, 2021 and 2020, the Group recognised rent income in the amounts of $1,795, $1,723, $3,575 and $3,439, respectively, based on the operating lease agreement, which does not include variable lease payments.

(9) Investment property

Investment property
		Land		Buildings		Total
January 1, 2021
Cost	$	32,466	$	29,941	$	62,407
Accumulated depreciation
and impairment	(	15,410)	(	9,961)	(	25,371)
	$	17,056	$	19,980	$	37,036
2021
Opening net book amount
as at January 1	$	17,056	$	19,980	$	37,036
Depreciation charge		-	(	272)	(	272)
Closing net book amount
as at June 30	$	17,056	$	19,708	$	36,764
June 30, 2021
Cost	$	32,466	$	29,941	$	62,407
Accumulated depreciation
and impairment	(	15,410)	(	10,233)	(	25,643)
	$	17,056	$	19,708	$	36,764
		Land		Buildings		Total
January 1, 2020
Cost	$	32,466	$	29,941	$	62,407
Accumulated depreciation
and impairment	(	15,410)	(	9,418)	(	24,828)
	$	17,056	$	20,523	$	37,579
2020
Opening net book
amount as at January 1	$	17,056	$	20,523	$	37,579
Depreciation charge		-	(	272)	(	272)
Closing net book amount
as at June 30	$	17,056	$	20,251	$	37,307
June 30, 2020
Cost	$	32,466	$	29,941	$	62,407
Accumulated depreciation
and impairment	(	15,410)	(	9,690)	(	25,100)
	$	17,056	$	20,251	$	37,307

~21~

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

Rental revenue from investment property Direct operating expenses arising from the investment property that generated rental income during the period Rental revenue from investment property Direct operating expenses arising from the investment property that generated rental income during the period	2021 2020 645 $ 637 $ 136 $ 136 $ 2021 2020 1,281 $ 1,273 $ 272 $ 272 $ Threemonths ended June 30 Six months ended June 30

B. The fair value of the investment property held by the Group was $84,667, $95,101 and $89,970 as of June 30, 2021, December 31, 2020 and June 30, 2020, 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.
(10) Short-term borrowings

Short-term borrowings
Unsecured borrowings Interest rate range	June30,2021 7,458,020 $ 0.56%~4.10%	December31,2020 8,668,103 $ 0.64%~4.25%	June30,2020
			5,408,722 $
			0.81%~4.79%

A. For the three months and six months ended June 30, 2021 and 2020, the interest expense recognised in profit or loss amounted to $23,829, $27,588, $50,037 and $63,928, respectively.
B. As of June 30, 2021, December 31, 2020 and June 30, 2020, the Group provided collaterals for the financing facility of short-term borrowings and issued guaranteed notes as collateral in the amount of $16,045,432, $15,271,888 and $15,286,061, respectively.

(11) Short-term notes and bills payable

			June 30,2021		December31,2020	December31,2020			June 30,2020
Short-term notes and bills
payable		$	650,000		$	550,000		$	500,000
Discount on short-term
notes and bills payable	(		535)	(		494)	(		444)
		$	649,465		$	549,506		$	499,556
Coupon rate			1%~1.2%			1%~1.2%			1%~1.2%

The abovementioned commercial paper was secured by financial institutions.

~22~

(12) 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 pension costs under the defined benefit pension plan of the Company for the three months and six months ended June 30, 2021 and 2020 were $49, $114, $98 and $228, respectively.
(c) Expected contributions to the defined benefit pension plan of the Group for the year ending December 31, 2021 amount to $180.
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. The pension costs under the defined contribution pension plan of the Company for the three months and six months ended June 30, 2021 and 2020 were $3,917, $3,539, $7,825 and $7,263, respectively.
(b) The overseas subsidiaries, Zenitron (HK) Limited, Zenitron (Shanghai) International Trading Co., Ltd, Zenitron (Shenzhen) Technology Co. Ltd., ZTHC (Shanghai) Co., Ltd., and Shanghai Zenitron Electronic Trading Co., Ltd, have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the local pension regulations are based on a certain percentage of employees’ monthly salaries and wages. Other than the monthly contributions, aforementioned companies have no further obligations. For the three months and six months ended June 30, 2021 and 2020, the amount of pension expenses that were recognised were $7,733, ($1,773), $15,455 and $3,029, respectively.
C. The overseas subsidiaries, Supertronic International Corp., Zenicom (HK) Limited and domestic subsidiaries, Yo-Teh Investment Corporation, have no employees, thus, they have no pension plan.

~23~

(13) Share capital

A. As of June 30, 2021, 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 June 30, 2021 and 2020, the beginning and ending number of outstanding shares were both 213,825 thousand shares.

(14) 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.

(15) Retained earnings

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.
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.

~24~

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 2020 and 2019 earnings as resolved by the shareholders on July 5, 2021 and June 12, 2020, respectively, are as follows:
(a) The distribution of 2020 and 2019 earnings were as follows:

Legal surplus Cash dividends	Dividend per share and cash distributed 48,424 $ 406,300 1.90 $ 454,724 $ 2020 Amount	Dividend per share and cash distributed 23,046 $ 207,600 0.9708 $ 230,646 $ 2019 Amount

(b) For the year ended December 31, 2019, the cash payment from capital surplus was $0.0294 per share, totaling $6,300 .
The aforementioned distribution of 2020 earnings had been approved by the Board of Directors, and reported to the shareholders’ meeting on July 5, 2021. Refer to Note 11 for details.

(16) Operating revenue

details. Operating revenue
Revenue from contracts with customers Revenue from contracts with customers	Three months ended June 30
	2021 2020 10,371,851 $ 7,210,819 $ Six months ended June 30	2020
		7,210,819 $
	2021 20,839,924 $	2020
		13,432,378 $

The Group derives revenue from the transfer of goods at a point in time in the following geographical regions:

Three months ended

Three months ended
June 30,2021 Revenue from external customer contracts Three months ended June 30,2020 Revenue from external customer contracts	China 9,171,685 $ China 6,204,156 $	Taiwan 931,257 $ Taiwan 798,172 $	Others 268,909 $ Others 208,491 $	Total
				10,371,851 $
				Total
				7,210,819 $

~25~

(17) (18)	Other income Other gains and losses Six months ended June 30,2021 China Revenue from external customer contracts 18,510,343 $ Six months ended June 30,2020 China Revenue from external customer contracts 11,356,389 $ Rent income Advertising income Other income Rent income Advertising income Other income Foreign exchange gains (Losses) gains on financial assets at fair value through profit or loss Losses on disposals of property, plant and equipment Others Foreign exchange gains (Losses) gains on financial assets at fair value through profit or loss Losses on disposals of property, plant and equipment Others	Taiwan Others Total 1,839,047 $ 490,534 $ 20,839,924 $ Taiwan Others Total 1,725,348 $ 350,641 $ 13,432,378 $ 2021 2020 1,795 1,723 3,311 2,431 10,032 1,231 15,138 $ 5,385 $ 2021 2020 3,575 3,439 6,189 4,378 12,001 12,468 21,765 $ 20,285 $ Threemonths ended June 30 Six months ended June 30 2021 2020 23,865 $ 16,185 $ 1,051) ( 53,196 149) ( 10) ( 12) ( 56) ( 22,653 $ 69,315 $ 2021 2020 39,360 $ 14,681 $ 1,733) ( 47,097 186) ( 20) ( 123) ( 68) ( 37,318 $ 61,690 $ Three months endedJune30 Six months ended June 30	Total 20,839,924 $
			Total
			13,432,378 $

~26~

(19) Finance costs

Interest expense Other interest expense Interest expense Other interest expense	2021 2020 23,829 $ 27,588 $ 3,638 3,122 27,467 $ 30,710 $ 2021 2020 50,037 $ 63,928 $ 7,768 5,855 57,805 $ 69,783 $ Threemonths ended June 30 Six months ended June 30

(20) Expenses by nature

Expenses by nature
Employee benefit expense Salary expenses Labour and health insurance fees Pension costs Other personnel expenses Depreciation Amortisation Employee benefit expense Salary expenses Labour and health insurance fees Pension costs Other personnel expenses Depreciation Amortisation	Three months endedJune30
	2021 2020 179,548 $ 158,435 $ 10,695 7,255 11,699 1,880 9,041 7,460 16,317 16,748 1,084 1,057 Six months endedJune30	2020
	2021 353,678 $ 22,188 23,378 17,549 32,916 2,053	2020
		300,550 $ 16,800 10,520 14,950 33,630 2,182

A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit of the current year, after covering accumulated losses, shall be distributed as employees’ compensation and directors’ remuneration. The ratio shall be 3%~12% for employees’ compensation and shall not be higher than 3% for directors’ remuneration.

~27~

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

Directors’ remuneration Employees’ compensation Directors’ remuneration Employees’ compensation	2021 2020 6,000 $ 2,500 $ 8,000 5,000 14,000 $ 7,500 $ 2021 2020 10,000 $ 4,000 $ 15,000 7,000 25,000 $ 11,000 $ Threemonths ended June 30 Six months ended June 30

C. For the six months ended June 30, 2021, 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.
D. The employees’ compensation of $18,000 and directors’ remuneration of $15,000 for 2020 were resolved by the Board of Directors and were in agreement with those amounts recognised in the 2020 financial statements.
E. 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) Income taxes

A. Income tax expense

ome taxes Income tax expense
			Threemonths	ended June 30
			2021	2020
Current tax:
Currrent tax on profits for the period		$	44,947	$	18,858
Total current tax			44,947		18,858
Deferred tax:
Origination and reversal of temporary
differences	(		3,251)	(	5,187)
Total deferred tax	(		3,251)	(	5,187)
Income tax expense		$	41,696	$	13,671

~28~

Six months ended June 30

Current tax: Currrent tax on profits for the period Total current tax Deferred tax: Origination and reversal of temporary differences Total deferred tax Income tax expense	2021 2020 92,595 $ 37,858 $ 92,595 37,858 2,106 3,585) ( 2,106 3,585) ( 94,701 $ 34,273 $

B. The Company’s and domestic subsidiaries’ income tax returns through 2017 and 2019 have been assessed and approved by the Tax Authority, respectively.

(22) Earnings per share

Three months endedJune30,2021	Three months endedJune30,2021	Three months endedJune30,2021
Profit after tax 246,034 $ 246,034 $ - 246,034 $	Weighted average number of ordinary shares outstanding (shares in thousands) 213,825 213,825 506 214,331	Earnings per share(in dollars)
		1.15 $
		1.15 $

~29~

Weighted average number of ordinary shares outstanding Earnings per Profit after tax (shares in thousands) share(in dollars) 139,278 $ 213,825 0.65 $ 139,278 $ 213,825 - 358 139,278 $ 214,183 0.65 $ Three months endedJune30,2020 Six months endedJune30,2021	Weighted average number of ordinary shares outstanding Earnings per Profit after tax (shares in thousands) share(in dollars) 139,278 $ 213,825 0.65 $ 139,278 $ 213,825 - 358 139,278 $ 214,183 0.65 $ Three months endedJune30,2020 Six months endedJune30,2021	Weighted average number of ordinary shares outstanding Earnings per Profit after tax (shares in thousands) share(in dollars) 139,278 $ 213,825 0.65 $ 139,278 $ 213,825 - 358 139,278 $ 214,183 0.65 $ Three months endedJune30,2020 Six months endedJune30,2021
Profit after tax 438,591 $ 438,591 $ - 438,591 $	Weighted average number of ordinary shares outstanding (shares in thousands) 213,825 213,825 806 214,631	Earnings per share(in dollars)
		2.05 $
		2.04 $

~30~

(23)
(24)

Supplemental cash flow information
Changes in liabilities from financing activities
Weighted average
number of
ordinary shares
outstanding
Earnings per
Profit after tax
(shares in thousands)
share(in dollars)
Basic earnings per share
Profit attributable to ordinary
shareholders of the parent
190,499
$ 213,825
0.89
$
Diluted earnings per share
Profit attributable to ordinary
shareholders of the parent
190,499
$ 213,825
Assumed conversion of all
dilutive potential ordinary
shares
Employees’ compensation
-
612
Profit attributable to ordinary
shareholders of the parent
plus assumed conversion of
all dilutive potential ordinary
shares
190,499
$ 214,437
0.89
$ Six months endedJune30,2020
June 30,2021
June 30,2020
Cash dividends declared but yet to be paid
and cash payment from capital surplus
406,300
$ 213,900
$ Short-term
Short-term notes
Liabilities from
financing
borrowings
and bills payable
Leaseliabilities
activities-gross
January 1, 2021
8,668,103
$ 549,506
$ 99,307
$ 9,316,916
$ Changes in cash flow
from financing
activities
1,210,083)
(
99,959
20,481)
(
1,130,605)
(
Changes in other
non-cash items
-
-
3,999
3,999
June 30, 2021
7,458,020
$ 649,465
$ 82,825
$ 8,190,310
$

~31~

										Liabilities from	Liabilities from
			Short-term	Short-term notes							financing
			borrowings	and	bills payable		Lease	liabilities		activities-gross
January 1, 2020		$	5,512,308	$	499,481		$	21,715		$	6,033,504
Changes in cash flow
from financing
activities	(		103,586)		75	(		21,923)	(		125,434)
Changes in other
non-cash items			-		-			95,229			95,229
June 30, 2020		$	5,408,722	$	499,556		$	95,021		$	6,003,299

(25) Seasonality of operations

Due to the seasonal nature of the 3C electronic channel, higher revenues and operating profits are usually expected in the second half of the year as compared to the first six months.

7. RELATED PARTY TRANSACTIONS

Key management compensation

RELATED PARTY TRANSACTIONS Key management compensation
Salaries and other short-term employee benefits Salaries and other short-term employee benefits	Three months ended June 30
	2021 2020 $19,519 $ 9,411 Six months ended June 30	2020
		$ 9,411
	2021 $ 34,299	2020
		$19,069

8. PLEDGED ASSETS

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

Pledged assets Accounts receivable, net: Accounts receivable as collateral Investment property Guarantee deposits paid (shown as ‘other non-current assets’)	June 30, 2021 - $ 2,906 10,000 12,906 $	December 31, 2020 427,312 $ 2,945 10,000 440,257 $ Bookvalue	June 30, 2020 - $ 2,984 10,000 12,984 $	Purpose
				Short-term borrowings Short-term borrowings Court deposits

SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1) Contingencies

None.

~32~

(2) Commitments

As of June 30, 2021, other significant commitments were as follows:

As a requirement for the release of imported goods before duty and customs clearance, the Group 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

(1) The distribution of 2020 earnings had been resolved at the shareholders’ meeting on July 5, 2021. Refer to Note 6(15) for details.
(2) The Company issued the fourth domestic unsecured convertible bonds as approved by the regulatory authority on July 12, 2021. The total issuance was not more than $600 million with a circulation period of three years. The unsecured convertible bonds had been publicly offered on July 30, 2021 and issued on August 3, 2021.

12. OTHERS

(1) Capital risk management

There was no significant change in the reporting period. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2020.

(2) Financial instruments

A. Financial instruments by category

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	June 30,2021 15,223 $ 929,424 $	December31,2020 25,307 $ 954,750 $	June 30,2020
			20,520 $
			1,224,001 $

~33~

Financial assets Financial assets at amortised cost / receivables Cash and cash equivalents Notes receivable Accounts receivable Other receivables 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 Other accounts payable Guarantee deposits received (shown as ‘other non-current liabilities’) Lease liabilities	June30,2021 1,423,881 $ 311,589 9,010,872 71,184 56,511 10,874,037 $ 7,458,020 $ 649,465 6,121 4,811,924 874,261 3,126 13,802,917 $ 82,825 $	December31,2020 1,676,223 $ 220,785 9,146,660 100,253 57,581 11,201,502 $ 8,668,103 $ 549,506 2,528 4,403,301 447,222 3,139 14,073,799 $ 99,307 $	June30,2020
			1,280,430 $ 187,534 6,543,255 53,223 56,733
			8,121,175 $
			5,408,722 $ 499,556 7,051 3,773,279 527,281 3,176
			10,219,065 $
			95,021 $

B. Financial risk management policies

There was no significant change in the reporting period. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2020.

C. Significant financial risks and degrees of financial risks

There was no significant change in the reporting period. Please refer to Note 12 in the consolidated financial statements for the year ended December 31, 2020, except for the items explained below:

~34~

(a) Market risk

Foreign exchange risk

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

		June 30,2021	June 30,2021
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
207,491 $ 296,022 55,508 217,966 100,585 251,383 $ 120,754 149,643 7,880 69,262	27.81 0.25 4.28 7.76 0.07 27.91 0.25 7.76 6.46 0.07			57,703 $ 740 2,376 60,616 251 70,161 $ 302 41,765 2,199 173	- $ - - - - - $ - - - -
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 55,091 233,273 63,162 281,890 $ 53,597 160,790 7,175 46,403	28.43 0.27 4.35 7.76 0.08 28.53 0.28 7.76 6.52 0.08	5,663,512 $ 62,150 239,646 6,631,961 17,054 8,042,322 $ 15,007 4,587,339 204,703 12,993	1% 1% 1% 1% 1% 1% 1% 1% 1% 1%	56,635 $ 622 2,396 66,320 171 80,423 $ 150 45,873 2,047 130	- $ - - - - - $ - - - -

~35~

June 30, 2020

(Foreign currency: functional currency) Financial assets Monetary items USD:NTD JPY:NTD RMB:NTD USD:HKD (Note) Financial liabilities Monetary items USD:NTD JPY:NTD USD:HKD (Note) USD:RMB (Note)	Foreign currency amount (In thousands) Exchange rate 132,201 $ 29.58 252,754 0.27 54,674 4.17 126,712 7.76 170,664 $ 29.68 196,725 0.28 88,318 7.76 4,664 7.08	Book value (In thousands of NTD) Degree of variation 3,910,506 $ 1% 68,244 1% 227,991 1% 3,748,141 1% 5,065,308 $ 1% 55,083 1% 2,621,278 1% 138,428 1%	Effect on profit or loss Effect on other comprehensive income 39,105 $ - $ 682 - 2,280 - 37,481 - 50,653 $ - $ 551 - 26,213 - 1,384 - Sensitivityanalysis

Note: The functional currencies of certain consolidated entities are not NTD, thus, this information must be considered when reporting. For example, when a subsidiary’s functional currency is RMB, the subsidiary’s segments that are involved with USD must be taken into consideration.
ii. The total exchange gain (loss), including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Group for the three months and six months ended June 30, 2021 and 2020, amounted to $23,865, $16,185 $39,360 and $14,681, respectively.

(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 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 Group’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 Group’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:

~36~

June 30, 2021 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Listed stocks Emerging stocks Financial assets at fair value through other comprehensive income Listed stocks Emerging stocks Unlisted stocks December 31, 2020 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Listed stocks Emerging stocks Financial assets at fair value through other comprehensive income Listed stocks Emerging stocks Unlisted stocks June 30, 2020 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Listed stocks Emerging stocks Financial assets at fair value through other comprehensive income Listed stocks Emerging stocks Unlisted stocks	Level 1 14,898 $ 325 817,411 736 - 833,370 $ Level 1 25,054 $ 253 858,283 573 - 884,163 $ Level 1 20,190 $ 330 1,125,348 748 - 1,146,616 $	Level 2 - $ - - - - - $ Level 2 - $ - - - - - $ Level 2 - $ - - - - - $	Level3 - $ - - - 111,277 111,277 $ Level3 - $ - - - 95,894 95,894 $ Level3 - $ - - - 97,905 97,905 $	Total
				14,898 $ 325 817,411 736 111,277
				944,647 $
				Total
				25,054 $ 253 858,283 573 95,894
				980,057 $
				Total
				20,190 $ 330 1,125,348 748 97,905
				1,244,521 $

~37~

(b) The methods and assumptions the Group used to measure fair value are as follows:
- i. For the instruments the Group used market quoted prices as their fair values (that is, Level 1), the Group uses the closing price as market quoted price.
- ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.
- iii. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk, etc. In accordance with the Group’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.
- 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. For the six months ended June 30, 2021 and 2020, there was no transfer between Level 1 and Level 2.
D. The following chart is the movement of Level 3 for the six months ended June 30, 2021 and 2020:

			2021			2020
At January 1		$	95,894		$	139,107
Acquired in the period			29,840			-
Sold in the period			-	(		28,598)
Proceeds from capital reduction	(		13,373)	(		11,852)
Effect of exchange rate changes	(		1,084)	(		752)
At June 30		$	111,277		$	97,905

~38~

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 Non-derivative equity instrument: Unlisted shares Non-derivative debt instrument: Non-derivative equity instrument: Unlisted shares Unlisted shares	Fair value at June30,2021	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	111,277 $ Fair value at December 31, 2020	Net asset value Valuation technique	Not applicable Significant unobservable input	Not applicable Range (weighted average)	Not applicable Relationship of inputs to fair value
	95,854 $ Fair value at June30,2020	Net asset value Valuation technique	Not applicable Significant unobservable input	Not applicable Range (weighted average)	Not applicable Relationship of inputs to fair value
	27,500 $ 70,405 97,905 $	Most recent non-active market price Net asset value	Not applicable Not applicable	Not applicable Not applicable	Not applicable Not applicable

(4) Other matter

Due to the COVID-19 pandemic, the Group has implemented various preventive measures imposed by the government as announced by the Central Epidemic Command Center (CECC) and the epidemic prevention regulations stipulated in the Communicable Disease Control Act, such as realname registration upon entry, taking turns coming to the office, to reduce the risks of personal contact and cross infection. The pandemic had no significant impact on the Group’s overall operations and financial position.

~39~

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 13(1) A, B and J.

(4) Major shareholders information

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

14. SEGMENT INFORMATION

(1) General information

The Group operates business only in a single industry. The Board of Directors who allocates resources and assesses performance of the Group as a whole, has identified that the Group has only one reportable operating segment.

~40~

(2) Segment information

The pre-tax net income is used to measure the operating segment profit (loss) and performance of the operating segments. The segment information provided to the chief operating decision-maker for the reportable segments is as follows:

for the reportable segments is as follows:
Segment revenue Segment income Segment income, including: Depreciation and amortisation Segment revenue Segment income Segment income, including: Depreciation and amortisation	2021 2020 10,371,851 $ 7,210,819 $ 246,034 $ 139,278 $ 17,401 $ 17,805 $ Threemonths ended June 30 Six months ended June 30
	2021 20,839,924 $ 438,591 $ 34,969 $	2020
		13,432,378 $
		190,499 $
		35,812 $

(3) Reconciliation for segment income (loss)

A. The revenue from external customers reported to the Board of Directors is measured in a manner consistent with that in the statement of comprehensive income.
B. The Group’s Board of Directors assesses performance of operating segments and allocates resources based on pre-tax net income; thus, reconciliation is not needed.

~41~

Table 1

Expressed in thousands of NTD

Zenitron Corporation and Subsidiaries

Loans to others

Six months ended June 30, 2021

(Except as otherwise indicated)

No. (Note 1)	Creditor	Borrower	General ledger account (Note 2)	Is a related party	Maximum outstanding balance during the six months ended June 30, 2021(Note 3)	Balance at June 30, 2021(Note 8)	Actual amount drawn down	Interest rate	Nature of loan (Note 4)	Amount of transactions with the borrower (Note 5)	Reason for short- term financing (Note 6)	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party (Note 7)	Ceiling on total loans granted (Note 7)	Footnote
													Item	Value
0 1 1 2 3	Zenitron Coporation ZTHC (Shanghai) Co., Ltd. ZTHC (Shanghai) Co., Ltd. Shanghai Zenitron Electronic Trading Co., Ltd Supertronic International Corp.	ZTHC (Shanghai) Co., Ltd. Zenitron (Shanghai) International Trading Co., Ltd. Zenitron (Shenzhen) Technology Co., Ltd. Zenitron (Shanghai) International Trading Co., Ltd. Zenitron Coporation	Other receivables Other receivables Other receivables Other receivables Other receivables	Yes Yes Yes Yes Yes	$ 613,760 87,680 263,040 52,608 83,580	$ 599,760 86,200 258,600 51,720 83,580	$ - - - 43,100 -	- - - 4.35% -	2 2 2 2 2	- $ - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital	- $ - - - -	- - - - -	- $ - - - -	$ 1,901,893 707,204 707,204 177,228 5,469,808	$ 1,901,893 707,204 707,204 177,228 5,469,808

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 and Subsidiaries

Expressed in thousands of NTD (Except as otherwise indicated)

Provision of endorsements and guarantees to others

Six months ended June 30, 2021

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 June 30, 2021 (Note 4)	Outstanding endorsement/ guarantee amount at June 30, 2021 (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 0 0 0	Zenitron Coporation Zenitron Coporation Zenitron Coporation Zenitron Coporation	Zenitron (HK) Limited Zenitron (Shenzhen) Technology Co., Ltd. Zenitron (Shanghai) International Trading Co., Ltd. ZTHC (Shanghai) Co., Ltd.	3 3 3 3	7,132,098 $ 7,132,098 7,132,098 7,132,098	2,090,720 $ 536,510 783,180 455,300	2,044,480 $ 527,200 774,870 447,310	671,710 $ 315,059 289,110 249,980	- $ - - -	43.00% 11.09% 16.30% 9.41%	7,132,098 $ 7,132,098 7,132,098 7,132,098	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 and Subsidiaries

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

June 30, 2021

(Except as otherwise indicated)

Securities held by	Marketable securities(Note 1)	Relationship with the securities issuer (Note 2)	General ledger account		As ofJune30,2021	As ofJune30,2021		Footnote (Note 4)
				Number of shares (Share/Unit)	Book value (Note 3)	Ownership (%)	Fair value
Zenitron Corporation Zenitron Corporation Zenitron Corporation Zenitron Corporation Zenitron Corporation Zenitron Corporation Zenicom Corporation Zenicom Corporation Supertronic International Corp	Stock Yeong Guan Group Stock Orient Pharma Co., Ltd. Stock ADLINK TECHNOLOGY INC. Stock NU INC. Stock Quadlink Technology Inc. Stock MEAN WELL ENTERPRISES CO., LTD. Stock Yeong Guan Group Stock Orient Pharma Co., Ltd. Stock Capital Investment Development Corp.	- - - - - - - - -	Current financial assets at fair value through profit or loss 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 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 Non-current financial assets at fair value through other comprehensive income	153,834 39,462 13,334,592 1,136,364 500,000 200,000 51,087 17,454 1,520,000	11,183,732 $ 736,361 817,410,490 8,610,838 10,000,000 57,340,000 3,714,025 325,692 35,326,926	0.14 0.02 6.13 7.89 3.62 0.13 0.05 0.01 3.57	11,183,732 $ 736,361 817,410,490 8,610,838 10,000,000 57,340,000 3,714,025 325,692 35,326,926

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 and Subsidiaries

Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more Six months ended June 30, 2021

Purchaser/seller	Counterparty	Relationship with the counterparty (Note2)			Transaction		Differences in transaction terms compared to third party transactions (Note1)	Differences in transaction terms compared to third party transactions (Note1)	Notes/accountsreceivable (payable)	Notes/accountsreceivable (payable)	Footnote (Note 3)
			Purchases (sales)	Amount	Percentage of total purchases (sales)	Credit term	Unit price	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. Zenicom (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 Zenicom (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	($ 3,832,320) 3,832,320 ( 250,614) 250,614 ( 186,829) 186,829 ( 356,926) 356,926 ( 351,453) 351,453 (103,200) 103,200	(35) 32 (2) 34 (2) 31 (3) 59 (3) 47 (100) 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	1,235,752 $ ( 1,235,752) 54,787 ( 54,787) 46,564 ( 46,564) 45,583 ( 45,583) 58,686 ( 58,686) 26,619 ( 26,619)	22 42 1 (33) 1 (36) 1 (36) 1 (35) 100 (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 and Subsidiaries

Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more Six months ended June 30, 2021

Table 5 Creditor	Counterparty	Relationship with the counterparty (Note 2)	Balance as at June 30, 2021 (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	Zenitron (HK) Limited	1	1,235,752 $	6.66	- $	-	278,100 $	- $

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.

Table 6

Expressed in thousands of NTD

Zenitron Corporation and Subsidiaries

Significant inter-company transactions during the reporting period

Six months ended June 30, 2021

(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 1 1 1 1	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 Zenitron (Shanghai) International Trading Co., Ltd. Zenitron (Shanghai) International Trading Co., Ltd. Zenitron (Shenzhen) Technology Co., Ltd. Zenitron (Shenzhen) Technology Co., Ltd. Zenitron (Shenzhen) Technology Co., Ltd. Zenitron (Shenzhen) Technology Co., Ltd. Zenitron (Shanghai) International Trading Co., Ltd. Zenitron (Shanghai) International Trading Co., Ltd.	1 1 1 1 1 1 3 3 3 3	Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable	$ 3,832,320 1,235,752 250,614 54,787 186,829 46,564 356,926 45,583 351,453 58,686	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 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	18 6 1 0 1 0 2 0 2 0

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 and Subsidiaries

Table 7

Information on investees

Six months ended June 30, 2021

Expressed in thousands of NTD

(Except as otherwise indicated)

Investor	Investee (Notes 1 and 2)	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at June 30,2021	Shares held as at June 30,2021	Shares held as at June 30,2021	Net profit (loss) of the investee for the six months ended June 30, 2021 (Note 2(2))	Investment income (loss) recognised by the Company for the six months ended June 30, 2021(Note 2(3))	Footnote
				Balance as at June 30,2021	Balance as at December 31,2020	Number of shares (in thousand)	Ownership (%)	Book value
Zenitron Coporation Zenitron Coporation Zenitron Coporation Zenitron Coporation Supertronic International Corp. Supertronic International Corp.	Zenicom Corporation Zenitron (HK) Limited Supertronic International Corp. Yo-Teh Investment Corporation Zenitron (HK) Limited Zenicom (HK) Limited	Taiwan Hong Kong B. V. I. Taiwan Hong Kong Hong Kong	Trading of electronic components and assembly Trading of electronic components and assembly Reinvested holding company Reinvested holding company Trading of electronic components and assembly Trading of electronic components and assembly	$ 55,854 2,008 618,023 84,167 471,639 92,780	$ 55,854 2,008 618,023 84,167 471,639 92,780	1,520 510 18,704 7,700 34,272 23,800	100.00 1.47 100.00 100.00 98.53 100.00	$ 29,257 38,147 2,734,904 66,372 2,556,912 85,806	($ 1,219) 376,640 371,358 8,697 376,640 223	($ 1,219) 5,537 371,358 8,697 371,103 223	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 June 30, 2021’ 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 six months ended June 30, 2021’ 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 six months ended June 30, 2021’ 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.

Table 8

Zenitron Corporation and Subsidiaries

Information on investments in Mainland China

Six months ended June 30, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Paid-in capital	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the six months ended June 30, 2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the six months ended June 30, 2021	Net income (loss) of investee for the six months ended June 30,2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the six months ended June 30, 2021(Note 2)	Book value of investments in Mainland China as of June 30, 2021	Accumulated amount of investment income remitted back to Taiwan as of June 30,2021
			Remitted to Mainland China	Remitted back to Taiwan
Zenitron (Shanghai) International Trading Co., Ltd. Trading of electronic components and assembly ZTHC (Shanghai) Co., Ltd. Selling computer memory equipment and related components and providing technical support Zenitron (Shenzhen) Technology Co., Ltd. Trading of electronic components and assembly Shanghai Zenitron Electronic Trading Co., Ltd. Trading of electronic components and assembly Companyname	$ 157,730 (2) 116,601 (2) 93,080 (2) 94,760 (2) Accumulated amount of remittance from Taiwan to Mainland China as of June 30,2021	$ 97,270 - $ 116,601 - 32,620 - - - Investment amount approved by the Investment Commission of the Ministry of Economic Affairs(MOEA)		- $ $ 97,270 - 116,601 - 32,620 - - Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA	($ 9,114) 32,039 ( 33,681) 232	100.00 100.00 100.00 100.00	($ 9,114) 32,039 ( 33,681) 232	169,589 $ 353,602 34,201 88,614	- $ - - -
Zenitron Corporation	246,491 $	443,484 $		2,852,839 $

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 unreviewed financial statements of the investees. Note 3: The numbers in this table are expressed in New Taiwan Dollars.

AI assistant

ZENITRON — Interim / Quarterly Report 2021

52261_rns_2021-11-09_c1beaf00-af7e-4427-8a30-446f4f12c95c.pdf

ZENITRON CORPORATION AND SUBSIDIARIES

INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

Introduction

Scope of review

Basis for qualified conclusion

Qualified conclusion

ZENITRON CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

JUNE 30, 2021, DECEMBER 31, 2020 AND JUNE 30, 2020

ZENITRON CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

JUNE 30, 2021, DECEMBER 31, 2020 AND JUNE 30, 2020

ZENITRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME SIX MONTHS ENDED JUNE 30, 2021 AND 2020

ZENITRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

SIX MONTHS ENDED JUNE 30, 2021 AND 2020

ZENITRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2021 AND 2020

ZENITRON CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS SIX MONTHS ENDED JUNE 30, 2021 AND 2020

1. HISTORY AND ORGANISATION

STATEMENTS AND PROCEDURES FOR AUTHORISATION

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(3) Basis of consolidation

(4) Employee benefits

Pensions

Defined benefit plans

(5) Income tax

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

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

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

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

G. Transferred financial assets that are derecognised in their entirety

(5) Inventories

(6) Property, plant and equipment

(7) Lease arrangements – lessee

－ (8) Lease arrangements lessor

(9) Investment property

(11) Short-term notes and bills payable

(12) Pensions

(13) Share capital

(14) Capital surplus

(15) Retained earnings

(16) Operating revenue

Three months ended

(19) Finance costs

(20) Expenses by nature

(21) Income taxes

Six months ended June 30

(25) Seasonality of operations

7. RELATED PARTY TRANSACTIONS

8. PLEDGED ASSETS

COMMITMENTS

(1) Contingencies

(2) Commitments

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

(1) Capital risk management

(2) Financial instruments

A. Financial instruments by category

B. Financial risk management policies

C. Significant financial risks and degrees of financial risks

(a) Market risk

Foreign exchange risk

(3) Fair value information

(4) Other matter

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

(2) Information on investees

(3) Information on investments in Mainland China

(4) Major shareholders information

14. SEGMENT INFORMATION

(1) General information

ZENITRON Interim / Quarterly Report 2021

`－` (8) Lease arrangements lessor