ZENITRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT SEPTEMBER 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 September 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three months and nine months then ended, as well as the related consolidated statements of changes in equity and of cash flows for the nine months then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of review

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

Basis for qualified conclusion

As explained in 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$2,177,426 thousand and NT$1,809,707 thousand, both constituting 11% of the consolidated total assets as at September 30, 2021 and 2020, respectively, total liabilities amounted to NT$1,067,247 thousand and NT$716,667 thousand, constituting 7% and 6% of the consolidated total liabilities as at September 30, 2021 and 2020, respectively, and the total comprehensive income amounted to NT$3,653 thousand, NT$51,332 thousand, NT$830 thousand and NT$33,596 thousand, constituting 1%, (50)%, 0% and 6% 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 September 30, 2021 and 2020, and of its consolidated financial performance for the three months and nine months then ended and its consolidated cash flows for the nine months then ended in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

Chen, Chin-Chang Yi-Fan Lin

For and on behalf of PricewaterhouseCoopers, Taiwan November 8, 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 independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

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

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ZENITRON CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2021, DECEMBER 31, 2020 AND SEPTEMBER 30, 2020

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

Assets	Notes	September 30, 2021 AMOUNT % `$` `1,492,507` `8` `20,821` `-` `610` `-` `279,242` `1` `9,677,656` `48` `75,191` `-` `6,725,722` `34` `172,794` `1` `18,444,543` `92` `956,678` `5` `425,785` `3` `69,980` `-` `36,628` `-` `70,011` `-` `66,339` `-` `1,625,421` `8` `$` `20,069,964` `100`	September 30, 2020	September 30, 2020
		AMOUNT `$` `1,492,507` `20,821` `610` `279,242` `9,677,656` `75,191` `6,725,722` `172,794` `18,444,543` `956,678` `425,785` `69,980` `36,628` `70,011` `66,339` `1,625,421` `$` `20,069,964`	AMOUNT `$` `1,410,959` `24,884` `892,741` `194,310` `8,689,333` `80,705` `4,443,224` `155,168` `15,891,324` `96,978` `438,289` `83,411` `37,172` `58,742` `63,758` `778,350` `$` `16,669,674`	%
Current assets Cash and cash equivalents Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - current Notes receivable, net Accounts receivable, net Other receivables Inventories, net Other current assets Total current assets Non-current assets Financial assets at fair value through other comprehensive income - non- current Property, plant and equipment Right-of-use assets Investment property, net Deferred income tax assets Other non-current assets Total non-current assets Total assets	6(1) 6(2) 6(3) 6(4) 6(4) 6(5) 6(3) 6(6) 6(7) 6(9) and 8 8			`9` `-` `5` `1` `52` `-` `27` `1`
				`95`
				`1` `3` `1` `-` `-` `-`
				`5`
				`100`

(Continued)

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ZENITRON CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2021, DECEMBER 31, 2020 AND SEPTEMBER 30, 2020

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

Liabilities and Equity	Notes	September 30, 2021 AMOUNT % `$` `8,544,947` `43` `699,387` `3` `3,791` `-` `4,159,353` `21` `476,146` `3` `158,951` `1` `42,314` `-` `87,516` `-` `14,172,405` `71` `575,740` `3` `114,468` `1` `29,911` `-` `70,310` `-` `790,429` `4` `14,962,834` `75` `2,138,249` `11` `1,034,339` `5` `766,624` `4` `893,000` `4` `274,918` `1` `5,107,130` `25` `5,107,130` `25` `$` `20,069,964` `100`	September 30, 2020	September 30, 2020
		AMOUNT `$` `8,544,947` `699,387` `3,791` `4,159,353` `476,146` `158,951` `42,314` `87,516` `14,172,405` `575,740` `114,468` `29,911` `70,310` `790,429` `14,962,834` `2,138,249` `1,034,339` `766,624` `893,000` `274,918` `5,107,130` `5,107,130` `$` `20,069,964`	AMOUNT `$` `7,685,915` `549,564` `4,197` `2,961,186` `369,366` `19,096` `33,270` `85,258` `11,707,852` `-` `114,468` `50,148` `67,726` `232,342` `11,940,194` `2,138,249` `958,734` `718,200` `514,691` `399,606` `4,729,480` `4,729,480` `$` `16,669,674`	%
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 Bonds payable 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 Total liabilities and equity	6(10) 6(11) 6(7) 6(12) 6(7) 6(14) 6(15) 6(16) 9			`47` `3` `-` `18` `2` `-` `-` `1`
				`71`
				`-` `1` `-` `-`
				`1`
				`72`
				`13` `6` `4` `3` `2`
				`28`
				`28`
				`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 NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

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

Items	Notes	Three months ended September 30	Three months ended September 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 OtherComprehensiveIncome (Loss) for thePeriod TotalComprehensiveIncome (Loss) Net profit, attributable to: Owners of the parent Non-controlling interest Comprehensive income (loss) 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 NINE MONTHS ENDED SEPTEMBER 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(16) 6(3) 6(3) 6(16) 6(12) 6(3)	`$` `2,138,249` `-` `-` `-` `-` `-` `-` `-` `$` `2,138,249` `$` `2,138,249` `-` `-` `-` `-` `-` `-` `-` `$` `2,138,249`	`$` `965,034` `-` `-` `-` `-` `-` `(` `6,300 )` `-` `$` `958,734` `$` `958,734` `-` `-` `-` `-` `-` `75,605` `-` `$` `1,034,339`		`$` `695,154` `-` `-` `-` `23,046` `-` `-` `-` `$` `718,200` `$` `718,200` `-` `-` `-` `48,424` `-` `-` `-` `$` `766,624`	`$` `390,067` `338,557` `-` `338,557` `(` `23,046 )` `(` `207,600 )` `-` `16,713` `$` `514,691` `$` `643,662` `695,709` `-` `695,709` `(` `48,424 )` `(` `406,300 )` `-` `8,353` `$` `893,000`		`($` `90,671` `)` `-` `(` `52,011` `)` `(` `52,011` `)` `-` `-` `-` `-` `($` `142,682` `)` `($` `165,691` `)` `-` `(` `60,180` `)` `(` `60,180` `)` `-` `-` `-` `-` `($` `225,871` `)`	`$` `307,875` `-` `251,126` `251,126` `-` `-` `-` `(` `16,713 )` `$` `542,288` `$` `508,404` `-` `738` `738` `-` `-` `-` `(` `8,353 )` `$` `500,789`	`$` `4,405,708` `338,557` `199,115` `537,672` `-` `(` `207,600` `)` `(` `6,300` `)` `-` `$` `4,729,480` `$` `4,801,558` `695,709` `(` `59,442` `)` `636,267` `-` `(` `406,300` `)` `75,605` `-` `$` `5,107,130`

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

FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

(Expressed in thousands of New Taiwan Dollars)

(UNAUDITED)

					For the nine-monthperiods ended	September	30
		Notes			2021	2020
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax				`$`	`836,405` `$`		`393,425`
Adjustments
Adjustments to reconcile profit (loss)
Net loss (gain) on financial assets at fair value through profit	6(19)
or loss					`3,928` `(`		`51,428` `)`
Expected credit (gain) loss	6(4)		`(`		`9,679` `)`		`19,816`
Depreciation and amortization	6(21)				`52,060`		`53,498`
Loss on disposal of property, plant and equipment	6(19)				`210`		`10`
Interest expense	6(20)				`86,620`		`93,275`
Interest income			`(`		`1,960` `)` `(`		`5,109` `)`
Dividend income	6(18)		`(`		`20,570` `)` `(`		`26,676` `)`
Changes in operating assets and liabilities
Changes in operating assets
Financial assets at fair value through profit or loss					`618`		`96,594`
Notes and accounts receivable			`(`		`579,774` `)` `(`	`1,751,554` `)`
Other receivables					`21,285`		`6,140`
Inventories			`(`		`348,210` `)` `(`		`258,553` `)`
Other current assets			`(`		`88,248` `)` `(`		`40,098` `)`
Changes in operating liabilities
Notes and accounts payable			`(`		`242,685` `)` `(`		`223,458` `)`
Other payables					`30,683`		`47,759`
Other current liabilities					`14,571`		`30,545`
Other non-current liabilities			`(`		`1,603` `)` `(`		`4,623` `)`
Cash outflow generated from operations			`(`		`246,349` `)` `(`	`1,620,437` `)`
Interest received					`1,960`		`5,109`
Interest paid			`(`		`87,054` `)` `(`		`96,612` `)`
Income tax paid			`(`		`41,651` `)` `(`		`59,422` `)`
Net cash flows used in operating activities			`(`		`373,094` `)` `(`	`1,771,362` `)`
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at fair value through other
comprehensive income			`(`		`29,840` `)` `(`		`74` `)`
Proceeds from capital reduction of financial assets at fair value
through other comprehensive income					`13,368`		`11,640`
Proceeds from disposal of financial assets at fair value through
other comprehensive income					`13,571`		`25,892`
Acquisition of property, plant and equipment	6(6)		`(`		`3,297` `)` `(`		`7,250` `)`
Proceeds from disposal of property, plant and equipment					`72`		`283`
Decrease (increase) in refundable deposits					`2,119` `(`		`316` `)`
Increase in other non-current assets			`(`		`6,383` `)` `(`		`612` `)`
Dividends received					`20,570`		`26,676`
Net cash flows from investing activities					`10,180`		`56,239`
CASH FLOWS FROM FINANCING ACTIVITIES
(Decrease) increase in short-term loans	6(24)		`(`		`123,156` `)`	`2,173,607`
Increase in short-term notes and bills payable	6(24)				`149,881`		`50,083`
Payments of lease liabilities	6(24)		`(`		`30,743` `)` `(`		`32,001` `)`
Issuance of corporate bonds	6(24)				`649,960`		`-`
Payment of cash dividends	6(16)		`(`		`406,300` `)` `(`		`213,900` `)`
Net cash flows from financing activities					`239,642`	`1,977,789`
Effect of exchange rate changes			`(`		`60,444` `)` `(`		`50,267` `)`
Net (decrease) increase in cash and cash equivalents			`(`		`183,716` `)`		`212,399`
Cash and cash equivalents at beginning of period					`1,676,223`	`1,198,560`
Cash and cash equivalents at end of period				`$`	`1,492,507` `$`	`1,410,959`

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 NINE MONTHS ENDED SEPTEMBER 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.

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

STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were reported to the Board of Directors on November 8, 2021.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

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

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:

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Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
----- End of picture text -----

follows: New Standards,Interpretations andAmendments	Effective date by International Accounting 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.

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.

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(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
			September 30, 2021	December 31, 2020	September 30, 2020
The Company The Company The Company The Company Supertronic Supertronic Zenitron (HK)	Supertronic International Corp. (Supertronic) Yo-Teh Investment Corporation (Yo-Teh) Zenicom Corporation (Zenicom) Zenitron (HK) Limited (Zenitron (HK)) Zenitron (HK) Zenicom (HK) Limited (Zenicom (HK)) Zenitron (Shanghai) International Trading Co., Ltd. (Zenitron (Shanghai))	Investment business Investment business Sales of electronic components Sales of electronic components Sales of electronic components Sales of electronic components Sales of electronic components	100.00 100.00 100.00 1.47 98.53 100.00 100.00	100.00 100.00 100.00 1.47 98.53 100.00 100.00	100.00 100.00 100.00 1.47 98.53 100.00 100.00	Note 2 Notes 1 and 2 Note 2 Note 2 Note 2 Note 2 Note 2

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

Name of investor	Name of subsidiaries	Main business activities	September 30, 2021 December 31, 2020 September 30, 2020	Description
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 September 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) Convertible bonds payable
Convertible bonds issued by the Group contain conversion options (that is, the bondholders have the right to convert the bonds into the Group’s common shares by exchanging a fixed amount of cash for a fixed number of common shares) and call options. The Group classifies the bonds payable upon issuance as a financial asset, a financial liability in accordance with the contract terms. They are accounted for as follows:
A. The embedded call options are recognised initially at net fair value as ‘financial assets or financial liabilities at fair value through profit or loss’. They are subsequently remeasured and stated at fair value on each balance sheet date; the gain or loss is recognised as ‘gain or loss on valuation of financial assets or financial liabilities at fair value through profit or loss’.
B. The host contracts of bonds are initially recognised at the residual amount of the total issue price less the amount of financial assets or financial liabilities at fair value through profit or loss as stated above. Any difference between the initial recognition and the redemption value is accounted for as the premium on bonds payable and subsequently is amortised in profit or loss as an adjustment to the ‘finance costs’ over the period of circulation using the effective interest method.

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C. The embedded conversion options which meet the definition of an equity instrument are initially recognised in ‘capital surplus—share options’ at the residual amount of total issue price less the amount of financial assets or financial liabilities at fair value through profit or loss and bonds payable as stated above. Conversion options are not subsequently remeasured.
D. Any transaction costs directly attributable to the issuance are allocated to each liability or equity component in proportion to the initial carrying amount of each abovementioned item.
E. When bondholders exercise conversion options, the liability component of the bonds (including bonds payable and ‘financial assets or liabilities at fair value through profit or loss’) shall be remeasured on the conversion date. The issuance cost of converted common shares is the total book value of the abovementioned liability component and ‘capital surplus—share options’.
(5) 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.

(6) Income tax

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

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
Cash on hand and revolving funds Checking accounts and demand deposits Time deposits	September30,2021 307 $ 1,285,726 206,474 1,492,507 $	December31,2020 944 $ 1,446,046 229,233 1,676,223 $	September30,2020
			712 $ 1,262,604 147,643
			1,410,959 $

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.

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

		September	30,2021		December	31,2020		September	30,2020
Current items
Financial assets
mandatorily measured
at fair value through
profit or loss
Listed stocks		$	32,178		$	45,927		$	46,799
Emerging stocks			1,163			1,163			1,162
Financial assets
desigated at fair value
through profit or loss
Non-hedging
derivatives-
redemption of
convertible bonds			60			-			-
			33,401			47,090			47,961
Valuation adjustment	(		12,580)	(		21,783)	(		23,077)
		$	20,821		$	25,307		$	24,884

A. The Group recognised net (loss) profit amounting to ($2,195), $4,331, ($3,928) and $51,428 on financial assets at fair value through profit or loss for the three months and nine months ended September 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).

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

September 30, 2021 December 31, 2020 September 30, 2020

September30,2021	December31,2020	September30,2020
Current items Equity instruments Listed stocks - $ Emerging stocks 2,462 2,462 Valuation adjustment 1,852) ( 610 $ Non-current items Equity instruments Listed stocks 342,772 $ Unlisted stocks 111,265 454,037 Valuation adjustment 502,641 956,678 $	347,990 $ 2,462 350,452 508,404 858,856 $ - $ 95,894 95,894 - 95,894 $	347,991 $ 2,462 350,453 542,288 892,741 $ - $ 96,978
		96,978 -
		96,978 $

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 $957,288, $954,750 and $989,719 as at September 30, 2021, December 31, 2020 and September 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 investments, 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 $25,892 which resulted to a cumulative gain on disposal of $8,353 and $16,713 during the nine months ended September 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:

Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income Cumulative gains reclassified to retained earnings due to derecognition	2021 2020 27,876 $ 227,393) ($ - $ 4,237) ($ Threemonths ended September30

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Nine months ended September 30
2021 2020
Equity instruments at fair value through other
comprehensive income
Fair value change recognised in other
comprehensive income $ 738 $ 251,126
Cumulative gains reclassified to retained
earnings due to derecognition ($ 8,353) ($ 16,713)
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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

		September	30, 2021			December31,2020		September	30, 2020
Notes receivable		$	279,242		$	220,785		$	194,310
Accounts receivable		$	9,769,510		$	9,255,767		$	8,806,103
Less: Allowance for
uncollectible accounts	(		91,854)	(		109,107)	(		116,770)
		$	9,677,656		$	9,146,660		$	8,689,333

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:

September	December	September	30, 2020
Accounts receivable 9,268,659 $ 316,384 107,366 77,101 9,769,510 $	Accounts receivable 8,688,643 $ 301,830 187,497 77,797 9,255,767 $	Accounts receivable 8,353,878 $ 292,718 63,180 96,327 8,806,103 $	Notes receivable
			194,310 $ - - -
			194,310 $

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.

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

September 30, 2021 Expected loss rate Total accounts receivable December 31, 2020 Expected loss rate Total accounts receivable September 30, 2020 Expected loss rate Total accounts receivable	0.11%-0.54% 9,268,659 $ 0.11%-0.44% 8,688,643 $ 0.11%-0.44% 8,353,878 $ Notpast due Notpast due Notpast due	Up to 30 dayspast due 0.11%-2.5% 316,384 $ Up to 30 dayspast due 0.11%-2.5% 301,830 $ Up to 30 dayspast due 0.11%-2.5% 292,718 $	31~90 dayspast due 0.11%-100% 107,366 $ 31~90 dayspast due 0.11%-100% 187,497 $ 31~90 dayspast due 0.11%-100% 63,180 $	Over 90 dayspast due 0.11%-100% 77,101 $ Over 90 dayspast due 0.11%-100% 77,797 $ Over 90 dayspast due 0.11%-100% 96,327 $	Total
					9,769,510 $
					Total
					9,255,767 $
					Total
					8,806,103 $

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

			2021			2020
			Accountsreceivable			Accounts receivable
At January 1		$	109,107		$	97,944
Provision for impairment loss			-			19,816
Reversal of impairment loss	(		9,679)			-
Transfers to overdue receivables	(		6,838)			-
Write-offs			-	(		486)
Effect of foreign exchange	(		736)	(		504)
At September 30		$	91,854		$	116,770

F. As of September 30, 2021, December 31, 2020, September 30, 2020 and January 1, 2020, the balances of receivables (including notes receivable) from contracts with customers amounted to $10,048,752, $9,476,552, $9,000,413 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.
G. Transferred financial assets that are derecognised in their entirety

~17~

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:

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September 30, 2021
Accounts receivable
Purchaser of accounts transferred (amount Amount available Interest rate of
receivable derecognised) Amount advanced for advance amount advanced
Chang Hwa Bank $ 1,506,328 $ 1,506,328 $ - 0.8%~0.93%
Bank SinoPac 278,996 278,996 - 0.8%~0.93%
December 31, 2020
Purchaser of Accounts Amount
accounts receivable Amount Amount available Interest rate of
receivable transferred derecognised advanced for advance amount advanced
Chang Hwa Bank $ 1,564,867 $ 1,564,867 $ 1,564,867 $ - 0.94%~1.16%
Bank SinoPac 217,716 206,831 206,831 10,885 0.94%~1.16%
September 30, 2020
Purchaser of Accounts Amount
accounts receivable Amount Amount available Interest rate of
receivable transferred derecognised advanced for advance amount advanced
Chang Hwa Bank $ 2,035,053 $ 2,035,053 $ 2,035,053 $ - 0.93%~1.22%
Bank SinoPac 178,459 168,675 168,675 9,784 0.93%~1.22%
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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:

follows:
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 September 30, 2021 and 2020.
I. Information relating to credit risk of accounts receivable and notes receivable is provided in Note 12(2).

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(5) Inventories

Inventories
Merchandise inventories Inventories in transit Merchandise inventories Inventories in transit Merchandise inventories Inventories in transit	6,958,659 $ 276,615 7,235,274 $ 6,233,422 $ 556,990 6,790,412 $ Cost Cost	509,552) ($ - 509,552) ($ 412,900) ($ - 412,900) ($ September30,2021 Allowance for valuation loss December31,2020 Allowance for valuation loss September 30, 2020	Bookvalue
			6,449,107 $ 276,615 6,725,722 $ Book value
			5,820,522 $ 556,990 6,377,512 $

	4,553,386 $ 263,385 4,816,771 $ Cost		Bookvalue
			4,179,839 $ 263,385
			4,443,224 $

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 September30	Threemonths ended September30
	2021 2020 10,150,519 $ 10,322,462 $ 60,496 27,030 10,211,015 $ 10,349,492 $ Ninemonths ended September30	2020
		10,322,462 $ 27,030
		10,349,492 $
	2021 29,749,027 $ 103,169 29,852,196 $	2020
		23,014,430 $ 46,113
		23,060,543 $

~19~

(6) Property, plant and equipment

At January 1, 2021 Cost Accumulated depreciation 2021 Opening net book amount as at January 1 Additions Disposals Depreciation charge Net exchange differences Closing net book amount as at September 30 At September 30, 2021 Cost Accumulated depreciation At January 1, 2020 Cost Accumulated depreciation 2020 Opening net book amount as at January 1 Additions Disposals Depreciation charge Net exchange differences Closing net book amount as at September 30 At September 30, 2020 Cost Accumulated depreciation		Land	Buildings and structures	Transportation equipment	Office equipment	Total
		252,592 $ - 252,592 $ 252,592 $ - - - - 252,592 $ 252,592 $ - 252,592 $ Land	409,175 $ 264,545) ( 144,630 $ 144,630 $ - - 5,149) ( 761) ( 138,720 $ 407,903 $ 269,183) ( 138,720 $ Buildings and structures	51,828 $ 31,918) ( 19,910 $ 19,910 $ - 184) ( 3,830) ( 62) ( 15,834 $ 48,963 $ 33,129) ( 15,834 $ Transportation equipment	113,366 $ 90,494) ( 22,872 $ 22,872 $ 3,297 98) ( 7,224) ( 208) ( 18,639 $ 113,991 $ 95,352) ( 18,639 $ Office equipment	826,961 $ 386,957) ( 440,004 $ 440,004 $ 3,297 282) ( 16,203) ( 1,031) ( 425,785 $ 823,449 $ 397,664) ( 425,785 $ Total
		252,592 $ - 252,592 $ 252,592 $ - - - - 252,592 $ 252,592 $ - 252,592 $	408,193 $ 256,041) ( 152,152 $ 152,152 $ - - 6,081) ( 407) ( 145,664 $ 407,589 $ 261,925) ( 145,664 $	52,602 $ 35,212) ( 17,390 $ 17,390 $ 3,270 200) ( 3,823) ( 26) ( 16,611 $ 50,590 $ 33,979) ( 16,611 $	110,365 $ 83,299) ( 27,066 $ 27,066 $ 3,980 93) ( 7,372) ( 159) ( 23,422 $ 112,094 $ 88,672) ( 23,422 $	823,752 $ 374,552) ( 449,200 $ 449,200 $ 7,250 293) ( 17,276) ( 592) ( 438,289 $ 822,865 $ 384,576) ( 438,289 $

~20~

(7) Lease arrangements – lessee

September30,2021 Right-of-use assets: Buildings and structures 69,980 $ Lease liabilities: Current 42,314 $ Non-current 29,911 72,225 $	December31,2020 September30,2020 98,306 $ 83,411 $ 40,234 $ 33,270 $ 59,073 50,148 99,307 $ 83,418 $

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 assets 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	Three months ended September 30	Three months ended September 30
	2021 2020 10,712 $ 10,847 $ Nine months ended September 30	2020
		10,847 $
	2021 32,272 $	2020
		32,612 $

D. For the three months and nine months ended September 30, 2021 and 2020, the additions (deductions) to right-of-use assets were ($4), ($1,406), $5,887, $94,253, 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	Threemonths ended September30
	2021 773 $ 3,997	2020
		723 $ 3,902

~21~

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term leases and leases of low-value assets	2021 2020 2,640 $ 1,238 $ 10,380 11,110 Nine months endedSeptember30

F. For the three months and nine months ended September 30, 2021 and 2020, the Group’s total cash outflow for leases were $15,032, $14,703, $43,763 and $44,349, 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 $131 and $1,240 by increasing other income for the nine months ended September 30, 2021 and 2020, respectively.

`－` (8) Lease arrangements lessor

For the three months and nine months ended September 30, 2021 and 2020, the Group recognised rent income in the amounts of $1,829, $1,718, $5,404 and $5,157, respectively, based on the operating lease agreement, which does not include variable lease payments.

(9) Investment property

Investment property
Land January 1, 2021 Cost $ 32,466 Accumulated depreciation and impairment ( 15,410) 17,056 $ 2021 Opening net book amount as at January 1 $ 17,056 Depreciation charge - Closing net book amount as at September 30 $17,056 September 30, 2021 Cost $ 32,466 Accumulated depreciation and impairment ( 15,410) 17,056 $	Buildings and structures Total $ 29,941 $ 62,407 (9,961) ( 25,371) 19,980 $ 37,036 $ $ 19,980 $ 37,036 ( 408) ( 408) $19,572 $ 36,628 $ 29,941 $ 62,407 ( 10,369) ( 25,779) 19,572 $ 36,628 $	Total
		36,628 $

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Buildings and
Land structures 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 - ( 407) ( 407)
Closing net book amount
as at September 30 $ 17,056 $ 20,116 $ 37,172
September 30, 2020
Cost $ 32,466 $ 29,941 $ 62,407
Accumulated depreciation
and impairment ( 15,410) ( 9,825) ( 25,235)
$ 17,056 $ 20,116 $ 37,172
----- End of picture text -----

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

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	Threemonths ended September30
	2021 2020 674 $ 636 $ 136 $ 135 $ Ninemonths ended September30	2020
		636 $
		135 $
	2021 1,955 $ 408 $	2020
		1,909 $
		407 $

Rental revenue from investment property Direct operating expenses arising from the investment property that generated rental income during the period

B. The fair value of the investment property held by the Group was $90,460, $95,101 and $106,069 as of September 30, 2021, December 31, 2020 and September 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.

~23~

(10) Short-term borrowings

Short-term borrowings
September30,2021 December31,2020 Unsecured borrowings 8,544,947 $ 8,668,103 $ Interest rate range 0.54%~4.2% 0.64%~4.25%	September30,2020 7,685,915 $
	0.67%~4.79%

A. For the three months and nine months ended September 30, 2021 and 2020, the interest expense recognised in profit or loss amounted to $23,071, $20,073, $73,108 and $84,001, respectively.
B. As of September 30, 2021, December 31, 2020 and September 30, 2020, the Group provided collaterals for the financing facility of short-term borrowings and issued guaranteed notes as collateral in the amount of $16,351,636, $15,271,888 and $15,240,899, respectively.
(11) Short-term notes and bills payable

		September 30, 2021	September 30, 2021			December 31, 2020		September30,2020	September30,2020
Short-term notes and bills
payable		$	700,000		$	550,000		$	550,000
Discount on short-term
notes and bills payable	(		613)	(		494)	(		436)
		$	699,387		$	549,506		$	549,564
Coupon rate			0.8%~1.2%			1%~1.2%			1%~1.2%

The abovementioned commercial paper was secured by financial institutions.

(12) Bonds payable

Bonds payable
			September30,2021
Bonds payable		$	600,000
Less:Discount on bonds payable	(		24,260)
		$	575,740

The Company had no bonds payable as of December 31, 2020 and September 30, 2020.

A. The issuance of domestic convertible bonds by the Company
(a) The terms of the fourth domestic unsecured convertible bonds issued by the Company are as follows
- i. The Company issued $600,000, 0% fourth domestic unsecured convertible bonds, as approved by the regulatory authority. The bonds mature three years from the issue date (August 3, 2021~ August 3, 2024) and will be redeemed in cash at face value at the maturity date. The bonds were listed on the Taipei Exchange on August 3, 2021.
- ii. The bondholders have the right to ask for conversion of the bonds into common shares of the Company during the period from the date after three months of the bonds issue (November 4, 2021) to 40 days before the maturity date (June 24, 2024), except for the stop transfer period as specified in the terms of the bonds or the laws/regulations. The rights and obligations of the new shares converted from the bonds are the same as the issued and outstanding common shares.

~24~

  - iii. The conversion price of the bonds is set up based on the pricing model in the terms of the bonds, and the conversion price is $29.

  - iv. The Company may repurchase all the bonds outstanding in cash at the bonds’ face value at any time after the following events occur: (i) the closing price of the Company common shares is above the then conversion price by 30% for 30 consecutive trading days during the period from the date after three months of the bonds issue (November 4, 2021) to 40 days before the maturity date (June 24, 2024), or (ii) the outstanding balance of the bonds is less than 10% of the total initial issue amount during the period from the date after three months of the bonds issue to 40 days before the maturity date.

  - v. Under the terms of the bonds, all bonds redeemed (including bonds repurchased from the Taipei Exchange), matured and converted are retired and not to be re-issued; all rights and obligations attached to the bonds are also extinguished.

(b) As of September 30, 2021, there were no convertible bonds converted to ordinary shares and no corporate bonds repurchased.
B. Regarding the issuance of convertible bonds, the equity conversion options of the fourth domestic unsecured convertible bonds amounting to $75,605 as of September 30, 2021 were separated from the liability component and were recognised in ‘capital surplus—share options’ in accordance with IAS 32. The call options embedded in bonds payable were separated from their host contracts and were recognised in ‘financial assets at fair value through profit or loss’ in net amount in accordance with IFRS 9 because the economic characteristics and risks of the embedded derivatives were not closely related to those of the host contracts.

(13) Pensions

A. (a) The Group 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 Group for the three months and nine months ended September 30, 2021 and 2020 were $49, $114, $147 and $342, respectively.
(c) Expected contributions to the defined benefit pension plan of the Group for the year ending December 31, 2021 amount to $180.

~25~

B. (a) Effective July 1, 2005, the Group 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 Group 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 Group for the three months and nine months ended September 30, 2021 and 2020 were $3,939, $3,590, $11,764 and $10,853, 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 nine months ended September 30, 2021 and 2020, the amount of pension expenses that were recognised were $8,036, $310, $23,491 and $3,339, 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.

(14) Share capital

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

(15) Capital surplus

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

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(16) 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.
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 1.90 $ 2020	2019
	48,424 $ 406,300 454,724 $ Amount		Dividend per share and cash distributed 23,046 $ 207,600 0.9708 $ 230,646 $ Amount

~27~

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

(17) Operating revenue

per share, totaling $6,300_._ Operating revenue
		Three months ended		September 30
		2021		2020
Revenue from contracts with customers	$	10,892,812	$	10,789,823
		Nine months ended		September 30
		2021		2020
Revenue from contracts with customers	$	31,732,736	$	24,222,201

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

==> picture [479 x 64] intentionally omitted <==

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

Three months ended
September 30, 2021 China Taiwan Others Total
Revenue from external
customer contracts $ 9,565,937 $ 1,015,965 $ 310,910 $ 10,892,812
----- End of picture text -----

regions: Three months ended September 30, 2021 Revenue from external customer contracts	China 9,565,937 $	Taiwan 1,015,965 $	Others 310,910 $	Total 10,892,812 $
Three months ended September30,2020 Revenue from external customer contracts Nine months ended September30,2021 Revenue from external customer contracts Nine months ended September30,2020 Revenue from external customer contracts	China 9,744,207 $ China 28,076,280 $ China 21,100,596 $	Taiwan 797,465 $ Taiwan 2,855,012 $ Taiwan 2,522,813 $	Others 248,151 $ Others 801,444 $ Others 598,792 $	Total
				10,789,823 $
				Total
				31,732,736 $
				Total
				24,222,201 $

~28~

(18) Other income

Three months ended September 30

		2021		2020
Rent income		1,829		1,718
Advertising income		3,016		4,855
Dividend income		20,570		26,676
Other income		990		724
	$	26,405	$	33,973
		Nine months ended		September 30
		2021		2020
Rent income		5,404		5,157
Advertising income		9,205		9,233
Dividend income		20,570		26,676
Other income		12,991		13,192
	$	48,170	$	54,258

(19) Other gains and losses

Other gains and losses
Finance costs 2021 2020 Foreign exchange gains 16,295 $ 34,373 $ (Losses) gains on financial assets at fair value through profit or loss 2,195) ( 4,331 Others 744) ( 4) ( 13,356 $ 38,700 $ 2021 2020 Foreign exchange gains 55,655 $ 49,054 $ (Losses) gains on financial assets at fair value through profit or loss 3,928) ( 51,428 Others 1,053) ( 92) ( 50,674 $ 100,390 $ Three months ended September 30 Nine months ended September 30 2021 2020 Interest expense 23,071 $ 20,073 $ Convertible bonds 1,325 - Other interest expense 4,419 3,419 28,815 $ 23,492 $ Threemonths ended September30	Three months ended September 30
	2021 23,071 $ 1,325 4,419 28,815 $	2020
		20,073 $ - 3,419
		23,492 $

(20) Finance costs

~29~

Interest expense Convertible bonds Other interest expense	2021 2020 73,108 $ 84,001 $ 1,325 - 12,187 9,274 86,620 $ 93,275 $ Nine months endedSeptember30

(21) 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	2021 2020 225,280 $ 151,217 $ 12,154 9,593 12,024 4,014 8,816 8,987 258,274 173,811 15,967 16,665 1,124 1,021 275,365 $ 191,497 $ Threemonths ended September30 Nine months ended September 30
	2021 578,958 $ 34,342 35,402 26,365 675,067 48,883 3,177 727,127 $	2020 451,767 $ 26,393 14,534 23,937
		516,631 50,295 3,203
		570,129 $

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.

~30~

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 $ 5,000 $ 10,000 6,000 16,000 $ 11,000 $ 2021 2020 16,000 $ 9,000 $ 25,000 13,000 41,000 $ 22,000 $ Threemonths ended September30 Nine months ended September 30

C. For the nine months ended September 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.

(22) Income taxes

A. Income tax expense

Current tax: Currrent tax on profit for the period Deferred tax: Origination and reversal of temporary differences Income tax expense Current tax: Currrent tax on profit for the period Deferred tax: Origination and reversal of temporary differences Income tax expense	2021 2020 41,594 $ 26,943 $ 4,401 6,348) ( 45,995 $ 20,595 $ 2021 2020 134,189 $ 64,801 $ 6,507 9,933) ( 140,696 $ 54,868 $ Threemonths ended September30 Ninemonths ended September30

~31~

B. The Company’s income tax returns through 2017 and 2019 have been assessed and approved by the Tax Authority.
C. Domestic subsidiaries’ income tax returns through 2019 have been assessed and approved by the Tax Authority.
(23) Earnings per share

Tax Authority. Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Convertible bonds Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares Employees’ compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares	Three months endedSeptember30,2021
	Weighted average number of ordinary shares outstanding Earnings per Profit after tax (shares in thousands) share(in dollars) 257,118 $ 213,825 1.20 $ 257,118 $ 213,825 865 1,060 4,471 258,178 $ 219,161 1.18 $ Three months endedSeptember30,2020		Earnings per share(in dollars)
			1.20 $
			1.18 $
	Profit after tax 148,058 $ 148,058 $ - 148,058 $	Weighted average number of ordinary shares outstanding Earnings per (shares in thousands) share (in dollars) 213,825 0.69 $ 213,825 650 214,475 0.69 $

~32~

Nine months endedSeptember30,2021	Nine months endedSeptember30,2021	Nine months endedSeptember30,2021
Weighted average number of y outstanding Earnings per Profit after tax (shares in thousands) share(in dollars) 695,709 $ 213,825 3.25 $ 695,709 $ 213,825 - 1,064 1,060 4,471 696,769 $ 219,360 3.18 $ Nine months endedSeptember30,2020		Earnings per share(in dollars)
		3.25 $
		3.18 $
Profit after tax 338,557 $ 338,557 $ - 338,557 $	Weighted average number of y outstanding (shares in thousands) 213,825 213,825 819 214,644	Earnings per share(in dollars)
		1.58 $
		1.58 $

~33~

(24) Changes in liabilities from financing activities

				Short-term	Short-term							Liabilities from	Liabilities from
		Short-term		notes and			Bonds			Lease			financing
		borrowings		bills payable			payable			liabilities	activities-gross
January 1, 2021		$	8,668,103	$	549,506		$	-	$	99,307		$	9,316,916
Changes in cash flow
from financing
activities	(		123,156)		149,881		649,960		(	30,743)			645,942
Changes in other
non-cash items			-		-	(	74,220)			3,661	(		70,559)
September 30, 2021		$	8,544,947	$	699,387		575,740 $		$	72,225		$	9,892,299

											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			2,173,607			50,083		(		32,001)			2,191,689
Changes in other
non-cash items				-			-			93,704			93,704
September 30, 2020	$		7,685,915		$	549,564		$		83,418	$		8,318,897

(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

Salaries and other short-term employee benefits

Threemonths ended September30	Threemonths ended September30
2021 2020 $13,478 $11,363 Ninemonths ended September30	2020
	$11,363
2021 $47,777	2020
	$ 30,432

~34~

8. PLEDGED ASSETS

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

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

Book value
September 30, December 31, September 30,
Pledged assets 2021 2020 2020 Purpose
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Accounts receivable, net: Accounts receivable as collateral Investment property Guarantee deposits paid (shown as ‘other non-current assets’)	- $ 2,886 10,000 12,886 $	427,312 $ 2,945 10,000 440,257 $	- $ Short-term borrowings 2,964 Short-term borrowings 10,000 Court deposits 12,964 $

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1) Contingencies

None.

(2) Commitments

As of September 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

None.

12. OTHERS

(1) Capital risk management

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

~35~

(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 desigated as at fair value through profit or loss Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortised cost / receivables Cash and cash equivalents Notes receivable Accounts receivable Other receivables Guarantee deposits paid (shown as ‘other non-current assets’)	September30,2021 20,761 $ 60 20,821 $ 957,288 $ 1,492,507 $ 279,242 9,677,656 75,191 55,462 11,580,058 $	December31,2020 25,307 $ - 25,307 $ 954,750 $ 1,676,223 $ 220,785 9,146,660 100,253 57,581 11,201,502 $	September30,2020
			24,884 $ -
			24,884 $
			989,719 $
			1,410,959 $ 194,310 8,689,333 80,705 56,759
			10,432,066 $

~36~

September 30, 2021 December 31, 2020 September 30, 2020

Financial liabilities

Financial liabilities at amortised cost Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Other accounts payable Bonds payable Guarantee deposits received (shown as ‘other non-current liabilities’) Lease liabilities	8,544,947 $ 699,387 3,791 4,159,353 476,146 575,740 3,126 14,462,490 $ 72,225 $	8,668,103 $ 7,685,915 $ 549,506 549,564 2,528 4,197 4,403,301 2,961,186 447,222 369,366 - - 3,139 3,159 14,073,799 $ 11,573,387 $ 99,307 $ 83,418 $

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:

(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:

~37~

September 30, 2021

Foreign currency amount (In thousands)	Exchange rate	Book value (In thousands of NTD)		Sensitivityanalysis	Sensitivityanalysis
			Degree of variation	Effect on profit or loss	Effect on other comprehensive income
220,521 $ 314,667 55,755 233,964 79,876 256,837 $ 154,582 165,203 7,720 44,437	27.80 0.25 4.28 7.78 0.07 27.90 0.25 7.78 6.49 0.07	6,130,484 $ 78,667 238,631 6,504,199 19,969 7,165,752 $ 38,646 4,609,164 215,388 11,109 December	1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 31,2020	61,305 $ 787 2,386 65,042 200 71,658 $ 386 46,092 2,154 111	- $ - - - - - $ - - - -
Foreign currency amount (In thousands)	Exchange rate	Book value (In thousands of NTD) 5,663,512 $ 62,150 239,646 6,631,961 17,054 8,042,322 $ 15,007 4,587,339 204,703 12,993		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		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	- $ - - - - - $ - - - -

~38~

September 30, 2020

		September 30,2020
(Foreign currency: functional currency) Financial assets Monetary items USD:NTD JPY:NTD RMB:NTD USD:HKD (Note) JPY:HKD (Note) Financial liabilities Monetary items USD:NTD JPY:NTD USD:HKD (Note) USD:RMB (Note) JPY:HKD (Note)	Foreign currency amount (In thousands) Exchange rate 198,275 $ 29.05 241,550 0.27 54,994 4.24 229,778 7.76 66,454 0.07 223,584 $ 29.15 103,742 0.28 127,543 7.76 5,697 6.81 43,873 0.07	Book value (In thousands of NTD) Degree of variation 5,759,889 $ 1% 65,219 1% 233,175 1% 6,675,341 1% 17,943 1% 6,808,974 $ 1% 29,048 1% 3,717,878 1% 166,068 1% 12,284 1%	Effect on profit or loss Effect on other comprehensive income 57,599 $ - $ 652 - 2,332 - 66,753 - 179 - 68,090 $ - $ 290 - 37,179 - 1,661 - 123 - 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 nine months ended September 30, 2021 and 2020, amounted to $16,295, $34,373, $55,655 and $49,054, 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.

~39~

B. Financial instruments not measured at fair value
(a) Except for those listed in the table below, the carrying amounts of cash and cash equivalents, notes receivable, accounts receivable, other receivables, short-term borrowings, notes payable, accounts payable and other payables are approximate to their fair values.

September 30, 2021 Fair value Book value Level 1 Level 2 Level 3 Financial liabilities: Bonds payable $ 575,740 $ - $ 578,839 $ -

There was no such transaction as of December 31, 2020 and September 30, 2020.

C. 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:

September 30, 2021 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Listed stocks Emerging stocks Redemption of convertible bonds 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	Level 1 20,492 $ 269 - 845,413 610 - 866,784 $ Level 1 25,054 $ 253 858,283 573 - 884,163 $	Level 2 - $ - - - - - - $ Level 2 - $ - - - - - $	Level3 - $ - 60 - - 111,265 111,325 $ Level3 - $ - - - 95,894 95,894 $	Total
				20,492 $ 269 60 845,413 610 111,265
				978,109 $
				Total
				25,054 $ 253 858,283 573 95,894
				980,057 $

~40~

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

September 30, 2020 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value measurements
Financial assets at fair value
through profit or loss
Listed stocks $ 24,614 $ - $ - $ 24,614
Emerging stocks 270 - - 270
Financial assets at fair value
through other comprehensive
income
Listed stocks 892,128 - - 892,128
Emerging stocks 613 - - 613
Unlisted stocks - - 96,978 96,978
$ 917,625 $ - $ 96,978 $ 1,014,603
----- End of picture text -----

(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.
D. For the nine months ended September 30, 2021 and 2020, there was no transfer between Level 1 and Level 2.

~41~

E. The following chart is the movement of Level 3 for the nine months ended September 30, 2021 and 2020:

and 2020:
Redemption of Unlisted stocks convertible bonds At January 1 95,894 $ - $ Acquired in the period 29,840 60 Sold in the period - - Proceeds from capital reduction 13,368) ( - Effect of exchange rate changes 1,101) ( - At September 30 111,265 $ 60 $ 2021	2020 Unlisted stocks
	139,107 $ - - - -
	139,107 $

F. 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.
G. The following is the qualitative information on significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

value measurement:
Non-derivative equity instrument: Unlisted shares Redemption of convertible bonds Non-derivative equity instrument: Unlisted shares	Fair value at September 30, 2021		Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fairvalue
		111,265 $ 60 $ Fair value at December 31, 2020	Net asset value Binomial model Valuation technique	Not applicable Volatility Significant unobservable input	Not applicable 19.52% Range (weighted average)	Not applicable The higher the volatility, the higher the fair value Relationship of inputs to fairvalue
		95,854 $	Net asset value	Not applicable	Not applicable	Not applicable

~42~

Fair value at September 30, 2020 Non-derivative equity instrument: Unlisted shares 27,500 $ Unlisted shares 69,478 96,978 $	Valuation technique Significant unobservable input Range (weighted average) Relationship of inputs to fair value Most recent non-active market price Not applicable Not applicable Not applicable Net asset value 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 and 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.

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.

~43~

(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.

(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	Three months ended September 30
	2021 2020 10,892,812 $ 10,789,823 $ 257,118 $ 148,058 $ 17,091 $ 17,686 $ 2021 2020 31,732,736 $ 24,222,201 $ 695,709 $ 338,557 $ 52,060 $ 53,498 $ Ninemonths ended September30
		24,222,201 $
		338,557 $
		53,498 $

(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.

~44~

Table 1

Expressed in thousands of NTD

Zenitron Corporation and Subsidiaries

Loans to others

Nine months ended September 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 nine months ended September 30,2021(Note 3)	Balance at September 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 83,880	$ 599,200 86,200 258,600 51,720 83,550	$ 214,000 - 86,200 43,100 -	2.50% - 2.50% 4.35% -	2 2 2 2 2	- $ - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital	- $ - - - -	- - - - -	- $ - - - -	$ 2,042,852 630,366 630,366 176,400 5,701,746	$ 2,042,852 630,366 630,366 176,400 5,701,746

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

Nine months ended September 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 September 30, 2021 (Note 4)	Outstanding endorsement/ guarantee amount at September 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	7,660,695 $ 7,660,695 7,660,695 7,660,695	2,090,720 $ 536,510 783,180 455,300	1,776,440 $ 527,150 774,810 447,250	880,385 $ 259,372 333,967 -	- $ - - -	34.78% 10.32% 15.17% 8.76%	7,660,695 $ 7,660,695 7,660,695 7,660,695	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

Zenitron Corporation and Subsidiaries

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

September 30, 2021

Expressed in NTD

(Except as otherwise indicated)

Securities held by	Marketable securities(Note 1)	Relationship with the securities issuer (Note 2)	General ledger account		As ofSeptember30,2021	As ofSeptember30,2021		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 Zenitron Corporation Zenicom Corporation Zenicom Corporation Supertronic International Corp	Stock Yeong Guan Group Stock Dynapack International Technology Corporation 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 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 70,000 39,462 13,334,592 1,136,364 500,000 200,000 51,087 17,454 1,520,000	10,306,878 $ 6,762,000 609,688 845,413,133 8,610,838 10,000,000 57,340,000 3,422,829 269,664 35,314,246	0.14 0.05 0.02 6.13 8.77 3.62 0.13 0.05 0.01 3.57	10,306,878 $ 6,762,000 609,688 845,413,133 8,610,838 10,000,000 57,340,000 3,422,829 269,664 35,314,246

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 Nine months ended September 30, 2021

Purchaser/seller	Counterparty	Relationship with the counterparty (Note 2)			Transaction		Differences in transaction terms compared to third party transactions (Note 1)	Differences in transaction terms compared to third party transactions (Note 1)	Notes/accounts receivable(payable)	Notes/accounts receivable(payable)	Footnote (Note 3)
			Purchases (sales)	Amount	Percentage of total purchases(sales)	Credit term	Unitprice	Credit term	Balance	Percentage of total notes/accounts receivable (payable)
Zenitron Coporation Zenitron (HK) Limited Zenitron Coporation Zenitron (Shanghai) International Trading Co., Ltd. Zenitron Coporation Zenitron (Shenzhen) Technology Co., Ltd. Zenitron (HK) Limited Zenitron (Shenzhen) Technology Co., Ltd. Zenitron (HK) Limited Zenitron (Shanghai) International Trading Co., Ltd. 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	($ 5,424,730) 5,424,730 ( 417,784) 417,784 ( 275,692) 275,692 ( 479,224) 479,224 ( 506,084) 506,084 (160,386) 160,386	(33) 30 (3) 37 (2) 33 (3) 56 (3) 45 (99) 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	$ 985,015 ( 985,015) 54,643 ( 54,643) 39,469 (39,469) 42,486 ( 42,486) 67,525 ( 67,525) 34,704 (34,704)	17 (38) 1 (34) 1 (40) 1 (43) 2 (42) 95 (2)

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 Nine months ended September 30, 2021

Table 5

Expressed in thousands of NTD

(Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty (Note 2)	Balance as at September 30, 2021 (Note 1)	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Accounts receivable Zenitron Coporation Other receivables Zenitron Corporation	Zenitron (HK) Limited ZTHC(SHANGHAI) CO ., LTD	1 1	`985,015` `$` `215,055`	`7.06` `-`	- $ -	- -	10,387 $ -	- $ -

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

Nine months ended September 30, 2021

(Except as otherwise indicated)

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)			Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets (Note 3)
0 0 0 0 0 0 0 1 1 1 1 2 2	Zenitron Coporation Zenitron Coporation Zenitron Coporation Zenitron Coporation Zenitron Coporation Zenitron Coporation Zenitron Corporation Zenitron (HK) Limited Zenitron (HK) Limited Zenitron (HK) Limited Zenitron (HK) Limited ZENICOM (HK) LIMITED ZENICOM (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. ZTHC(SHANGHAI) CO ., LTD Zenitron (Shenzhen) Technology Co., Ltd. Zenitron (Shenzhen) Technology Co., Ltd. Zenitron (Shanghai) International Trading Co., Ltd. Zenitron (Shanghai) International Trading Co., Ltd. Zenitron Corporation Zenitron Corporation	1 1 1 1 1 1 1 3 3 3 3 2 2	Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable Other receivables Sales Accounts receivable Sales Accounts receivable Sales Accounts receivable	$ 5,424,730 985,015 417,784 54,643 275,692 39,469 215,055 479,224 42,486 506,084 67,525 160,386 34,704	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 Based on mutual agreements Selling price has no obvious difference from the third parties 60~90 days after monthly billings Selling price has no obvious difference from the third parties 60~90 days after monthly billings Selling price has no obvious difference from the third parties 60~90 days after monthly billings	17 5 1 0 1 0 1 2 0 2 0 1 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

Expressed in thousands of NTD (Except as otherwise indicated)

Information on investees

Nine months ended September 30, 2021

Investor	Investee (Notes 1 and 2)	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at September 30,2021	Shares held as at September 30,2021	Shares held as at September 30,2021	Net profit (loss) of the investee for the nine months ended September 30, 2021 (Note 2(2))	Investment income (loss) recognised by the Company for the nine months ended September 30, 2021(Note 2(3))	Footnote
				Balance as at September 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	$ 28,163 39,836 2,850,873 66,363 2,670,120 86,317	($ 2,313) 499,384 495,412 8,688 499,384 1,036	($ 2,313) 7,341 495,412 8,688 492,043 1,036	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 September 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 nine months ended September 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 nine months ended September 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.

Zenitron Corporation and Subsidiaries

Table 8

Information on investments in Mainland China

Nine months ended September 30, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method (Note 1)	Accumulated amount of remittance from Taiwan to Mainland China as of January1,2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine months ended September 30,2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the nine months ended September 30,2021	Accumulated amount of remittance from Taiwan to Mainland China as of September 30,2021	Net income (loss) of investee for the nine months ended September 30, 2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the nine months ended September 30,2021(Note 2)	Book value of investments in Mainland China as of September 30,2021	Accumulated amount of investment income remitted back to Taiwan as of September 30, 2021	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Zenitron (Shanghai) International Trading Co., Ltd. ZTHC (Shanghai) Co., Ltd. Zenitron (Shenzhen) Technology Co., Ltd. Shanghai Zenitron Electronic Trading Co., Ltd.	Trading of electronic components and assembly Selling computer memory equipment and related components and providing technical support Trading of electronic components and assembly Trading of electronic components and assembly	$ 157,730 116,601 93,080 94,760	(2) (2) (2) (2)	$ 97,270 116,601 32,620 -	- $ - - -	- $ - - -	$ 97,270 116,601 32,620 -	$ 6,236 ( 5,668) ( 7,270) 121	100.00 100.00 100.00 100.00	$ 6,236 ( 5,668) ( 7,270) 121	184,167 $ 315,183 60,070 88,200	- $ - - -

Companyname	Accumulated amount of remittance from Taiwan to Mainland China as of September 30,2021	Investment amount approved by the Investment Commission of the Ministry of Economic Affairs(MOEA)	Ceiling on investments in Mainland China imposed by the Investment Commission of MOEA
Zenitron Corporation	246,491 $	443,484 $	3,064,278 $

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_ea40b550-58b6-4101-8ea2-5dafcc431471.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

SEPTEMBER 30, 2021, DECEMBER 31, 2020 AND SEPTEMBER 30, 2020

ZENITRON CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2021, DECEMBER 31, 2020 AND SEPTEMBER 30, 2020

ZENITRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

ZENITRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY NINE MONTHS ENDED SEPTEMBER 30, 2021 AND 2020

ZENITRON CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTH PERIODS ENDED SEPTEMBER 30, 2021 AND 2020

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

1. HISTORY AND ORGANISATION

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

STATEMENTS AND PROCEDURES FOR AUTHORISATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(3) Basis of consolidation

Pensions

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

(5) Inventories

(6) Property, plant and equipment

(7) Lease arrangements – lessee

－ (8) Lease arrangements lessor

(9) Investment property

(10) Short-term borrowings

(13) Pensions

(14) Share capital

(15) Capital surplus

(16) Retained earnings

(18) Other income

Three months ended September 30

(19) Other gains and losses

(20) Finance costs

(21) Expenses by nature

(22) Income taxes

(24) Changes in liabilities from financing activities

(25) Seasonality of operations

7. RELATED PARTY TRANSACTIONS

8. PLEDGED ASSETS

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1) Contingencies

(2) Commitments

10. SIGNIFICANT DISASTER LOSS

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

12. OTHERS

(1) Capital risk management

(2) Financial instruments

A. Financial instruments by category

Financial liabilities

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