ZERO ONE - Audit Report / Information 2019

Code ： 3029

ZERO ONE TECHNOLOGY CO., LTD.

PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE THE YEARS ENDED DECEMBER 31, 2019 AND 2018 AND INDEPENDENT AUDITORS’ REPORT

Address: 10F., No.8, Ln. 360, Sec. 1, Neihu Rd., Taipei City. Dial: +886 2 2656 5656

§TABLE OF CONTENTS§

Contents 1`、`Cover 2`、`Table of Contents 3`、`Independent Auditors’ Review Report 4`、`Parent company only Balance Sheets 5`、`Parent company only Statements of Comprehensive Income 6`、`Parent company only Statements of Changes in Equity 7`、`Parent company only Statements of Cash Flows 8`、`Notes to Parent company only Financial Statements (1) General (2) The date and procedures of authorization of financial statements (3);Application of new and revised standards and interpretations (4) Summary of significant accounting policies (5) Critical Accounting judgements and key sources of estimation and uncertainty (6) Explanation of significant accounts (7) Related parties transactions (8) Pledged assets (9) Significant contingent liabilities and unrecognized commitments (10)Foreign-currency-denominated assets and liabilities that have significant influence (11) Separately disclosed items A. Information on significant transactions B. Information on investees C. Information on investment in Mainland China 9`、`List of major account tiles	Page No. 1 2 3`～`5 6 7`～`8 9 10`～`11 12 12 12`～`14 14`～`22 22 23`～`45 45`～`46 46 46 46 47`～` 51 47`、`52 47 53~67	Financial Report’s Note No. - - - - - - - 1 2 3 4 5 6`～`25 26 27 28 29 30 30 30 -

INDEPENDENT AUDITORS' REPORT

The board of directors and Shareholders Zero One Technology Company Limited

Opinion

We have audited the accompanying parent company only financial statements of zero one technology company limited, which comprise the parent company only balance sheets as of December 31, 2019 and 2018, and the parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended December 31, 2019 and 2018, and the notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the parent company only financial position of the company as of December 31, 2019 and 2018, and its parent company only financial performance and its parent company only cash flows for the years then ended December 31, 2019 and 2018.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the republic of china. our responsibilities under those standards are further described in the auditors' responsibilities for the audit of the parent company only financial statements section of our report. we are independent of the company in accordance with the norm of professional ethics for certified public accountant of the republic of china and we have fulfilled our other ethical responsibilities in accordance with these requirements. we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for the year ended December 31, 2019. these matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Key audit matters for the company's parent company only financial statements for the year ended December 31, 2019 are stated as follows:

Valuation of allowance for uncollectible accounts

Key Audit Matters

As indicated in Note 5 and Note 10 for judgements, the management of the Company assesses the collectability of accounts receivable and valuation of allowance for uncollectible accounts, based on the regulations of IFRS 9, and recognizes allowance for uncollectible accounts by lifetime expected credit losses. As the estimation of allowance for uncollectible accounts is subject to judgement of the management, we consider the valuation of allowance for uncollectible accounts a key audit matter.

We access the policy of valuation of allowance for uncollectible accounts, assure reasonability of the rate of expected credit losses, and require reasons for insuring that credit losses of individuals with delinquent accounts are expected.

The following audit procedures

Our procedure includes understanding and testing controls of allowance for uncollectible accounts by the management in line with periodic review, predicting and managing differences as tracked for losses, design and execution of relevant controls. We also obtain an Aging report of trade receivable for calculation the allowance for uncollectible accounts on the balance sheet date, and perform the procedure of sampling and auditing for testing the correctness of the aging report, and calculate for evaluating the amount is recognized by allowance for uncollectible accounts in line with the Company’s accounting policy for recording.

Allowance for inventory valuation loss

Key Audit Matters

The valuation of the inventory of the Company includes the estimate of net realizable value and the allowance for inventory valuation loss regarding with the outdated and obsolete inventory. Net realizable valuation, based on the historical data of market situation and similar products, of the inventory is the carrying amounts calculated by the estimate sales price deducts the estimate of input costs, and cost of goods sold, during the ordinary course of business. The material influence of market condition will affect the amount of net realizable valuation. Besides, the ratio of the allowance for inventory valuation loss is valued by inventory aging and the allowance for the actual loss We consider the estimate of net realizable valuation, and the ratio of the allowance for inventory impairment loss of the outdated and obsolete inventories a key audit matter, based on management's professional estimation.

The following audit procedures

Our procedure includes understanding the accounting policies, valuation methods, and citation information originality for the inventory of the Company, obtaining information of the year-end allowance for inventory valuation loss and inventory aging reports, drawing samples to ensure the reasonableness of the inventory as valued by net realizable value method and the inventory aging, and the carrying amount of the year-end allowance for inventory valuation loss fitting the Company’s accounting policy for allowance.

Responsibilities of Management and Those Charged with Governance for the Parent company only Financial Statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the regulations governing the preparation of financial reports by securities issuers and the IFRS, IAS, IFRIC, and SIC endorsed and issued into effect by the financial supervisory commission of the republic of china, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance (including members of the supervisors) are responsible for overseeing the Company's financial reporting process.

Auditors' Responsibilities for the Audit of the Parent company only Financial Statements

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

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

;Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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;Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control.
;Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company 's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors' report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. our conclusions are based on the audit evidence obtained up to the date of our auditors' report. however, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
;Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the company to express an opinion on the parent company only financial statements. we are responsible for the direction, supervision and performance of the company audit. we remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2019 and are therefore the key audit matters. we describe these matters in our auditors' report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors' report are Wen Chin Lin and Hsin Wei Tai.

Deloitte & Touche

Taipei, Taiwan Republic of China

February 26, 2020

Notice to Readers

The accompanying parent company only financial statements are intended only to present the parent company only financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the republic of china and not those of any other jurisdictions. the standards, procedures and practices to audit such parent company only financial statements are those generally applied in the republic of china.

For the convenience of readers, the independent auditors' report and the accompanying parent company only financial statements have been translated into English from the original Chinese version prepared and used in the republic of china. if there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' report and parent company only financial statements shall prevail.

ZERO ONE TECHNOLOGY CO., LTD.

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2019 AND 2018 (In Thousands of New Taiwan Dollars)

December 31, 2019 Amount % $ 298,352 6 34,182 1 - - 683,552 13 276,895 5 1,742,370 33 1,306,416 25 43,281 1 4,385,048 84 30,280 1 192,423 4 79,079 1 143,945 3 313,991 6 7,332 - 1,358 - 41,852 1 2,754 - 813,014 16 $ 5,198,062 100 $ 150,000 3 2,024,410 39 374,041 7 56,927 1 3,576 - - - 141,128 3 2,750,082 53 793 - 3,803 - 21,918 - 1,162 - 27,676 - 2,777,758 53 1,246,352 24 470,136 9 184,732 4 16,844 - 494,764 10 696,340 14 7,476 - 2,420,304 47 $ 5,198,062 100	December 31, 2018	December 31, 2018	December 31, 2018
Amount $ 298,352 34,182 - 683,552 276,895 1,742,370 1,306,416 43,281 4,385,048 30,280 192,423 79,079 143,945 313,991 7,332 1,358 41,852 2,754 813,014 $ 5,198,062 $ 150,000 2,024,410 374,041 56,927 3,576 - 141,128 2,750,082 793 3,803 21,918 1,162 27,676 2,777,758 1,246,352 470,136 184,732 16,844 494,764 696,340 7,476 2,420,304 $ 5,198,062		Amount $ 201,754 47,473 7,865 560,236 160,573 1,718,368 934,052 22,495 3,652,816 14,846 137,138 76,828 136,129 312,926 - 902 37,321 1,677 717,767 $ 4,370,583 $ 100,000 1,644,365 239,136 56,683 - 5,085 105,902 2,151,171 736 - 21,579 800 23,115 2,174,286 1,228,965 446,515 159,438 15,501 362,722 537,661 16,844) 2,196,297 $ 4,370,583	%
	(		5 1 - 13 4 39 21 1
			84
			- 3 2 3 7 - - 1 -
			16
			100
			2 38 6 1 - - 2
			49
			- - 1 -
			1
			50
			28
			10
			4 - 8
			12
			-
			50
			100

ZERO ONE TECHNOLOGY CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE(Note 4&26) Net sales OPERATING COSTS(Note 11&26) Cost of goods sold GROSS PROFIT OPERATING EXPENSES(Note 20) Selling and marketing expenses General and administrative expenses Expected credit loss reversed on trade receivables Total operating expenses PROFIT FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES(Note 20) Other income Other gains and losses Excluding gain(loss) on financial assets measured at amortised cost Finance costs Share of profit or loss of subsidiaries, associates and joint ventures(Note 12) Total non-operating income and expenses		2019	2018 % Amount % 100 $ 6,551,970 100 90 5,902,692 90 10 649,278 10 4 278,359 4 1 104,773 2 - ( 16,494) - 5 366,638 6 5 282,640 4 - 32,172 1 - 2,828 - - - - -( 358 ) - - ( 1,805) - - 32,837 1 (Continued)		2018
		Amount $ 8,826,659 7,960,716 865,943 336,544 126,149 5,901) 456,792 409,151 33,721 7,196 3,745 2,054 ) 7,344) 35,264				%
	( ( (

ZERO ONE TECHNOLOGY CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE(Note 21) NET PROFIT OTHER COMPREHENSIVE INCOME (LOSS) (Note 18&21) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans Unrealized gain (loss) on investments in equity instruments designated as at fair value through other comprehensive income Share of other comprehensive income (loss) of subsidiaries, associates and joint ventures accounted for using the equity method Income tax relating to items that will not be reclassified subsequently to profit or loss Other comprehensive (loss) income for the year, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR EARNINGS PER SHARE (Note 22) From continuing operations Basic Diluted		2019	% 5 1 4 - - - - - 4		2018
		Amount $ 444,415 93,102 351,313 1,157 ) 20,757 6,847 231 26,678 $ 377,991 $ 2.85 $ 2.77			Amount $ 315,477 62,538 252,939 1,183 ) 2,289 ) 4,375 ) 674 7,173) $ 245,766 $ 2.06 $ 2.03	%
	(			( ( ( (		5 1 4 - - - - - 4

(Concluded)

ZERO ONE TECHNOLOGY CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

BALANCE, JANUARY 1, 2018 Appropriation of 2017 earnings Legal reserve Reversal of special reserve Cash dividends - NT$1.3 per share Net profit for the year ended December 31, 2018 Other comprehensive income (loss) for the year ended December 31, 2018, net of income tax Total comprehensive income (loss) for the year ended December 31, 2018 Convertible bonds converted to capital stock Share based payment transaction - employee stock option Issuance of ordinary shares under employee share options Disposals of investments in equity instruments designated as at fair value through other comprehensive income BALANCE, DECEMBER 31, 2018 Appropriation of the 2018 earnings Legal reserve Special reserve Cash dividends - NT$1.5 per share Net profit for the year ended December 31, 2019 Other comprehensive income (loss) for the year ended December 31, 2019, net of income tax Total comprehensive income (loss) for the year ended December 31, 2019 Convertible bonds converted to capital stock Share based payment transaction - employee stock option Share based payment transaction - restricted stock awards Issuance of restricted stock awards Issuance of ordinary shares under employee share options Disposals of investments in equity instruments designated as at fair value through other comprehensive income BALANCE AT DECEMBER 31, 2019		Share Capital Shares (In Thousand) Issued Capital Capital Surplus 122,480 $ 1,224,804 $ 434,135 - - - - - - - - - - - - - - - - - - 311 3,111 1,681 - - 10,252 105 1,050 447 - - - 122,896 1,228,965 446,515 - - - - - - - - - - - - - - - - - - 338 3,377 1,722 - - 11,431 - - - 700 7,000 8,156 701 7,010 2,312 - - - 124,635 $ 1,246,352 $ 470,136		Retained Earnings	Total $ 445,489 - - 159,484 ) 252,939 509) 252,430 - - - 774) 537,661 - - 184,603 ) 351,313 926) 350,387 - - - - - 7,105) $ 696,340		Other Equity	Total $ 10,954 ) - - - ( - 6,664) ( 6,664) - - - 774 16,844 ) - - - ( - 27,604 27,604 - - 4,767 15,156 ) - 7,105 $ 7,476	Total Equity $ 2,093,474 - - 159,484 ) 252,939 7,173) 245,766 4,792 10,252 1,497 - 2,196,297 - - 184,603 ) 351,313 26,678 377,991 5,099 11,431 4,767 - 9,322 - $ 2,420,304
						Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income ( $ 10,954 ) - - - - ( 6,664) ( 6,664) - - - 774 ( 16,844 ) - - - - 27,604 27,604 - - - - ( - 7,105 $ 17,865 (	Other Employee Benefits $ - ( - - - - - ( - ( - - - - - ( - - - - - - - - 4,767 15,156 ) ( - - $ 10,389)
		Shares (In Thousand) 122,480 - - - - - - 311 - 105 - 122,896 - - - - - - 338 - - 700 701 - 124,635		Unappropriated Legal Reserve Special Reserve Earnings $ 139,840 $ 16,723 $ 288,926 19,598 - ( 19,598 ) - ( 1,222 ) 1,222 - - ( 159,484 ) ( - - 252,939 - - ( 509) ( - - 252,430 - - - - - - - - - - - ( 774) ( 159,438 15,501 362,722 25,294 - ( 25,294 ) - 1,343 ( 1,343 ) - - ( 184,603 ) ( - - 351,313 - - ( 926) ( - - 350,387 - - - - - - - - - - - - - - - - - ( 7,105) ( $ 184,732 $ 16,844 $ 494,764

ZERO ONE TECHNOLOGY CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax Adjustments for: Write-down of inventories Net (gain) loss on foreign currency exchange Interest income Depreciation expenses Compensation costs of employee share options Net loss (gain) on fair value change of financial assets/liabilities at fair value through profit or loss Share of loss (gain) of subsidiaries, associates and joint ventures accounted for using the equity method Reversal of expected credit losses Dividend income Net profit upon derecognition of financial assets measured at amortized cost Finance costs Amortization expenses Loss on disposal of property, plant and equipment Loss on disposal of associates Changes in operating assets and liabilities Financial assets mandatorily classified as at fair value through profit or loss Notes receivable Trade receivables Inventories Other current assets Trade payable Other payable Other current liabilities Net defined benefit liabilities Cash generated from operations Income tax paid Net cash generated from operating activities	2019 $ 444,415 29,563 23,769 ( 22,488 ) 18,058 16,198 ( 7,359 ) 7,344 ( 5,901 ) ( 4,366 ) ( 3,745 ) 2,054 776 - - 5,215 ( 116,322 ) ( 17,318 ) ( 410,213 ) ( 3,678 ) 364,851 131,321 35,226 ( 818) 486,582 ( 97,101) 389,481	2018
		$ 315,477 73,836 ( 2,530 ) ( 16,502 ) 10,688 10,252 247 1,805 ( 16,494 ) ( 5,092 ) - 358 626 2 49 3,185 24,655 ( 244,155 ) ( 548,874 ) ( 13,611 ) 436,155 107,876 32,169 ( 526) 169,596 ( 56,094) 113,502

(Continued)

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ZERO ONE TECHNOLOGY CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at amortized cost Disposal of financial assets at amortized cost Purchase of financial assets at fair value through other comprehensive income Proceeds from sale of financial assets at fair value through other comprehensive income Interest received Acquisition of investments accounted for using the equity method Increase in other receivables-related parties Payments for property, plant and equipment Other dividends received Proceeds from the return of capital upon investees' capital reduction of financial assets at fair value through other comprehensive income Dividend received from subsidiaries Increase in refundable deposits Payments for intangible assets Net cash inflow on disposal of associates Proceeds from disposal of property, plant and equipment Proceeds from disposal of intangible assets Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid Increase in short-term borrowings Exercise of employee share options Repayment of principal portion of lease liabilities Interest paid Guarantee deposits received Net cash used in financing activities EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN CURRENCIES NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR	2019 ( $ 191,975 ) 64,955 ( 47,786 ) 17,803 20,178 ( 10,063 ) ( 10,000 ) ( 7,033 ) 4,366 3,320 1,750 ( 1,077 ) ( 670 ) - - - ( 156,232) ( 184,603 ) 50,000 9,322 ( 4,319 ) ( 2,050 ) 362 ( 131,288) ( 5,363) 96,598 201,754 $ 298,352	2018
		( $ 422,182 ) - ( 73,883 ) 1,195 13,800 - - ( 8,217 ) 5,092 - - ( 193 ) ( 700 ) 340 79 65 ( 484,604) ( 159,484 ) 100,000 1,497 - ( 196 ) 710 ( 57,473) 5,992 ( 422,583 ) 624,337 $ 201,754

(Concluded)

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ZERO ONE TECHNOLOGY CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2019 and 2018

(Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

1. GENERAL

ZERO ONE TECHNOLOGY CO., LTD. (ZOTC) was incorporated as a company limited by shares under the provisions of the Company Law of the Republic of China in June 27, 1980. On January 21, 2000, ZOTC’s Shares were listed on Taipei Exchange(TPEX). On August 26, 2002, ZOTC’s shares were listed on the Taiwan Stock Exchange(TWSE). ZOTC is a dedicated foundry in the technology industry which engages mainly in the design, manufacturing, packaging, selling, consulting and services of electronic information, computer software, hardware, accessories, components and Chinese data processing, etc.

The parent company only financial statements are expressed by the functional currency (new taiwan dollars) of the company.

2. THE DATE AND PROCEDURES OF AUTHORIZATION OF FINANCIAL STATEMENTS

The accompanying parent company only financial statements were approved by the board of directors and issued on February 26, 2020.

3. ;APPLICATION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS

(1)Initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, “IFRSs”).

The initial application of the amendments to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed and issued into effect by the FSC for application would not have a significant effect on the Company’s accounting policies:

IFRS 16 “Leases”

IFRS 16 sets out the accounting standards for leases t hat will supersede IAS 17 ”LEASE”, IFRIC 4 ”Determining whether an Arrangement contains a Lease” and a number of related interpretations. Refer to Note 4 for information relating to the relevant accounting policies.

Definition of a lease

Upon initial application of IFRS 16, the Company will elect to apply IFRS 16 only to contracts entered into (or changed) on or after January 1, 2019 in order to determine whether those contracts are, or contain, a lease. Contracts identified as containing a lease under IAS 17 and IFRIC 4 will not be reassessed and will be accounted for in accordance with the transitional provisions under IFRS 16.

The Company as lessee

Upon initial application of IFRS 16, the Company will recognize right-of-use assets and lease liabilities for all leases on the consolidated balance sheets except for those whose payments under low-value and short-term leases will be recognized as expenses on a straight-line basis. On the consolidated statements of comprehensive income, the Company will present the depreciation expense charged on right -of-use assets separately from the interest expense accrued on lease liabilities; interest is computed using the effective interest method. On the consolidated statements of cash flows, cash payments for the principal and cash payments for the interest portion of lease liabilities will be classified within financing activities. Currently, payments under operating lease contracts are recognized as expenses on a straight -line basis under IFRS 16. Cash flows for operating leases are classified within operating activities on the consolidated statements of cash flows.

The Company anticipates applying IFRS 16 retrospectively with the cumulative effect of the initial application of this standard for retained earnings rec ognized on January 1, 2019. Comparative information will not be restated.

Leases agreements classified as operating leases under IAS 17 will be measured at the present value of the remaining lease payments, discounted using the lessee’s incremental borrowing rate on January 1, 2019. Right-of-use assets are measured at an amount equal to the lease liabilities, adjusted by the amount of any prepaid or accrued lease payments. Right-of-use assets are subject to impairment testing under IAS 36.

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The Company expects to apply the following practical expedients:

a) The Company will apply a single discount rate to a portfolio of leases with reasonably similar characteristics to measure lease liabilities.
b) The Company will account for those leases for which the lease te rm ends on or before December 31, 2019 as short -term leases.
c) The Company will use hindsight, such as in determining lease terms, to measure lease liabilities.

The range of lessee’s incremental borrowing rate applied to lease liabilities recognized on January 1, 2019 was between 1.2%. The difference between the lease liabilities recognized and future minimum lease payments of non -cancellable operating lease commitments on December 31, 2018 is explained as follows:

The future minimum lease payments of non-cancellable operating lease commitments on December 31, 2018 $ 3,731 Less: Recognition exemption for short-term leases ( 163 ) Less: Recognition exemption for low-value leases ( $ 27 ) Undiscounted amounts on January 1, 2019 $ 3,541 Discounted amounts using the incremental borrowing rate on January 1, 2019 $ 3,505 Lease liabilities recognized on January 1, 2019 $ 3,505

The Company as lessor

The Company does not make any adjustments for leases in which it is a lessor, and it accounts for those leases with the application of IFRS 16 starting from January 1, 2019.

The impact on assets, liabilities and equity as of January 1, 2019 from the initial application of IFRS 16 is set out as follows:

, application of IFRS 16 is set	out as follows:	,
Right-of-use assets Total effect on assets Lease liabilities - current Total effect on liabilities Retained earnings Total effect on Equities	As Originally Stated on January 1, 2019 $ - - 537,661	Adjustments Arising from Initial Application $ 3,505 $ 3,505 $ 3,505 $ 3,505 $ - $ -	Restated on January 1, 2019
			$ 3,505 3,505 537,661

(2)The IFRSs endorsed by the FSC with effective date starting 2020

Effective Date Issued New, Revised or Amended Standards and Interpretations by IASB Amendments to IFRS 3 “Definition of a Business” January 1, 2020 (Note 1) Amendments to IFRS 9, IAS 39 and IFRS 7 “Interest Rate Benchmark January 1, 2020 (Note 2) Reform” Amendments to IAS 1 and IAS 8 “Definition of Material” January 1, 2020 (Note 3)

Note 1: The Company shall apply these amendments to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2020 and to asset a cquisitions that occur on or after the beginning of that period.
Note 2: The Company shall apply these amendments prospectively for annual reporting periods beginning on or after January 1, 2020.
Note 3: The Company shall apply these amendments prospective ly for annual reporting periods beginning on or after January 1, 2020.

;; As of the date the consolidated financial statements were authorized for issue, the Company is continuously assessing the possible impact that the application of above standards and interpretations will have on the Company’s financial position and financial performance, and will disclose the relevant impact when the assessment is completed.

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(3) New IFRSs issued by IASB but not yet endorsed and issued into effect by the FSC

New,Revised or Amended Standards and Interpretations 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 IAS 1 “Classification of Liabilities as Current or Noncurrent”	Effective Date Issued byIASB(Note)
	To be determined by IASB January 1, 2021 January 1, 2022

Note 1 ： Unless stated otherwise, the above new, revised or amended standards and interpretations are effective for annual periods begin ning on or after their respective effective dates. As of the date the consolidated financial statements were authorized for issue, the Company is continuously assessing the possible impact that the application of above standards and interpretations will have on the Company’s financial position and financial performance, and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1)Statement of compliance

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

(2)Basis of preparation

The Parent company only financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value, and present value of defined benefits plans deducts net defined benefit liabilities measured at fair value.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

A.; Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities, which can be acquired during measurement date;
B. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices);
C. Level 3 inputs are unobservable inputs for the asset or liability.

When preparing the parent company only financial statements, the Company account for subsidiaries and associates by using the equity method. In order to agree with the amount of net income, other comprehensive income and equity attributable to shareholders of the parent in the consolidated financial statements, the differences of the accounting treatment between the parent company only basis and the consolidated b asis are adjusted under the heading of investments accounted for using equity method, share of profits of subsidiaries and associates and share of other comprehensive income of subsidiaries and associates in the parent company only financial statements.

(3)Classification of current and non-current assets and liabilities Current assets include:
A.;Assets held primarily for the purpose of trading;
B.; Assets expected to be realized within twelve months after the reporting period; and
C. ;Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

Current liabilities include:

A.; Liabilities held primarily for the purpose of trading;
B. Liabilities due to be settled within twelve months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long -term basis is completed after the reporting period and before the parent company only financial statements are authorized for issue; and
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C. Liabilities for which the Company does not have an unconditional right to defer settlement for at least twelve months after the reporting period, unless issuing equities to defer settlement wouldn’t affect classification, depending on liabilities conditions.

Assets and liabilities that are not classified as current are classified as non -current.

(4)Foreign currencies

In preparing the financial statements of each individual group entity, transactions in currencies other than the entity’s functio nal currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that d ate. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period.

Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non -monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary items that are measured at historical cost in a forei gn currency are not retranslated.

(5)Inventories

Inventories are stated at the lower of cost or net realizable value. Inventory write -downs are made by item, except where it may be appropriate to group similar or related items. Net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at standard cost and adjusted to approximate weighted -average cost on the reporting period.

(6)Investment in subsidiaries

The Company uses the equity method to account for its investments in subsidiaries.

Subsidiaries are the entities controlled by the Company.

Under the equity method, the investment is initially recognized at cost and the carrying amount is increased or decreased to recognize the Company’s share of the profit or loss and other comprehensive income of the subsidiary after the date of acquisition. Besides, the Company also recognizes the Company’s share of the change in other equity of the subsidiary.

Changes in the Company’s ownership interests in subsidiaries that do not result in the Company’s loss of control over the subsidiaries are accounted for as equity transactions. Any difference between the carrying amounts of the investment and the fair value of the consideration paid or received is recognized directly in equity.

When the Company’s share of losses of a subsidiary equals or exceeds its interest in that subsidiary (which includes any carrying amount of the investment in subsidiary accounted for by the equity method and long-term interests that, in substance, form part of the Company’s net investment in the subsidiary), the Company continues recognizing its share of further losses.

Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Company’s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition is recognized immediately in profit or loss.

The Company assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the entire financial statements of the invested company. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Company recognizes the reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

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When the Company loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The diff erence between the fair value of the retained investment plus any consideration received and the carrying amount of the previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Company had directly disposed of the related assets or liabilities.

Unrealized profits and losses from upstream transactions with a subsidiary are eliminated in full. profits and losses from downstream between the company and subsidiaries are recognized in the company’ parent company only fina ncial statements in the scope of the Company’s equities are not relevant to subsidiaries.

(7)Investment in associates

An associate is an entity over which the Company has significant influence and that is neither a subsidiary nor an interest in a joint venture.

The Company uses the equity method to account for its investm ents in associates.

Under the equity method, investments in an associate are initially recognized in the parent company only balance sheet at cost and adjusted thereafter to recognize the company’s share of the profit or loss and other comprehensive inco me of the associate. The Company also recognizes the changes in the equity of associates attributable to the Company.

When the Company subscribes for additional new shares of the associate at a percentage different from its existing ownership percentage , the resulting carrying amount of the investment differs from the amount of the Company’s proportionate interest in the associate. The Company records such a difference as an adjustment to investments with the corresponding amount charged or credited to c apital surplus. If the Company’s ownership interest is reduced due to the additional subscription of the new shares of associate, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associ ate is reclassified to profit or loss on the same basis as would be required if the investee had directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for by the equity method is insufficient, the shortage is debited to retained earnings

When the Company’s share of losses of an associate equals or exceeds its interest in that associate (which includes any carrying amount of the investme nt accounted for by the equity method and long-term interests that, in substance, form part of the Company’s net investment in the associate), the Company discontinues recognizing its share of further losses. Additional losses and liabilities are recognize d only to the extent that the Company has incurred legal obligations, or constructive obligations, or made payments on behalf of that associate.

The entire carrying amount of the investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is deducted from the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

The Company discontinues the use of the equity method from the date on which its investment ceases to be an associate. Any retained investment is measured at fair value at that date and the fair value is regarded as its fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associa te. The Company accounts for all amounts previously recognized in other comprehensive income in relation to that associate on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. If the investment of associates becomes the investment of joint ventures, or visa versa, the Company will continue to evaluate investment accounted for by the equity method, other than remeasure retained equities.

Profits and losses, resulting from upstream, downstream , reciprocal transactions should be between the Company and associates, are recognized on parent company only

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financial statements in the scope of the Company’s equities are not relevant to associates.

(8)Property, plant and equipment

Property, plant and equipment are stated at cost, less recognized accumulated depreciation and accumulated impairment loss.

Depreciation is recognized using the straight -line method. Each significant part is depreciated separately. The estimated useful lives, residual value s and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

(9)Intangible assets

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight -line basis. The estimated useful life, residual value, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

On de-recognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset are recognized in profit or lo ss.

(10)Impairment of tangible and intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its tangible and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash -generating unit to which the asset belongs. Corporate assets are also allocated to individual cash-generating units; otherwise they are allocated to the smallest group of cash-generating units on a reasonable and consistent basis of allocation.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash -generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recover able amount, but only to the extent of the carrying amount that would have been determined had no impairment loss, without amortization or depreciation, been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

(11)Financial instruments

Financial assets and financial liabilities are recognized on parent company only balance sheets when a group entity becomes a party to the contractual provisions of the instruments.

Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in pr ofit or loss.

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a. A.Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

a. Measurement category

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost, and investments in equity instruments at FVTOCI.

(a)Financial assets at FVTPL

Financial asset is classified as at FVTPL when the financial asset is mandatorily classified as or designated as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets at FVTPL are subsequently measur ed at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. The net gain or loss recognized in profit or loss excludes any dividend or interest earned on the financial asset. Fair value is determined in the manner described in Note 25.

(b)Financial assets at amortized cost

Financial assets that meet the following two conditions are subsequently measured at amortized cost:

a).The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
b).The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, trade receivable and refundable deposits are measured at amortized cost, which equals to gross carrying amount determined by the effective interest method less any impairmen t loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to multiple the gross carrying amount of a financial asset.

Cash equivalents, held for meeting short-term cash commitments, include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash, as well as deposits in the bank and repurchase bonds, which are subject to an insignificant risk of changes in value.

(c)Investments in equity instruments at FVTOCI

On initial recognition, the Company may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes i n fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments, instead, they will be transferred to retained earnings.

Dividends on these investments in equity instruments at FVTOCI are recognized in profit or loss when the Company’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

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b. Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivable).

The Company always recognizes the loss allowance by lifetime Expected Credit Loss (i.e. ECL) for trade receivable. For all other financial instruments, the Company recognizes lifetime ECL when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance at an amount equal to 12 -month ECL. Expected credit losses reflect the weighted average of credit losses with the respective risks of a default occurring as the wei ghts. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12 -month ECL represents the portion of lifetime ECL that is expected to result from de fault events on a financial instrument that are possible within 12 months after the reporting date. The Company recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.

c. De-recognition of financial assets

The Company derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

B. Financial liabilities
(a)Subsequent measurement

All financial liabilities are measured at amortized cost using the effective interest method.

(b)De-recognition of financial liabilities

The difference between the carrying amount of the financial liability derecognized and the consideration paid, including any non -cash assets transferred or liabilities assumed, is recognized in profit or loss.

C. Convertible bonds

The component parts of compound instruments (convertible bonds) issued by the Company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

On initial recognition, the fair value of the liability component is estimated using the prevailing market interest rate for similar non -convertible instruments. This amount is recorded as a liability on an amortized cost basis using the effective interest method until extinguished upon conversion or the instr ument’s maturity date. Any non-equity embedded derivative liability is measured at fair value.

The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a w hole. This is recognized and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in the liability and equity until the conversion option is exercised, in which case, the balance recognized in equity will be transferred to capital surplus - share premium. When the conversion option remains unexercised at maturity, the balance recognized in equity will be transferred to capital surplus - share premium.

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Transaction costs that relate to the issue of the convertible bonds are allocated to the liability and equity components in proportion to the allocation of the gross proceeds.

(12)Revenue recognition

The Company identifies the contract with the customers, alloc ates the transaction price to the performance obligations, and recognizes revenue when performance obligations are satisfied.

Revenue from sale of goods

Revenue from sale of goods comes from sales of computer software, hard ware, accessories, equipment, and components, etc. Customers have the right of quotation and user, and the responsibility of resale as goods after shipment and taking risks of losses of obsolete goods. The Company recognizes revenues and trade receivable as goods after shipment.

(13)Leases

2019

At the inception of a contract, the Company assesses whether the contract is, or contains, a lease.

A. The Company as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

B. The Company as lessee

Except for payments for low-value asset leases and short-term leases which are recognized as expenses on a straight-line basis, the Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of the lease.

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, and less any lease incentives received, any initial direct costs incurred and an estimate of costs needed to restore the underlying assets. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses the lessee’s incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

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2018

Leases are classified as finance lease whenever the terms of the le ase transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

  - A. The Company as lessor

     - Rental income from operating leases is recognized on a straight -line basis over the term of the relevant lease.

  - B. The Company as lessee

     - Operating lease payments are recognized as an expense on a straight -line basis over the lease term.

(14)Costs of loans
All Costs of loans as incurred shall be recognized profits and losses at the current period.
(15)Employee benefit

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasu rement) under the defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost as well as past service cost, and net interest on the net defined benefit liability (asset) are r ecognized as employee benefits expense in the period they occur, or when the plan amendment or curtailment occurs/when the settlement occurs. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recogn ized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liability (asset) represents the actual deficit (surplus) in the Company’s defined benefit plan. Net defined benefit asset shall not exceed the return contribution or the present value possibly calculated after reducing future contribution.

(16)Share-based payment arrangements

The fair value and expected estimate amounts of the stock options and restricted stock sward determined at the grant date of the stock options is expensed on a straight -line basis over the vesting period, based on the Company’s estimate of stock options that will eventually vest, with a corresponding increase in capital surplus - stock options. The fair value determined at the grant date of the stock options is recognized as an expense in full at the grate date when the stock options granted ves t immediately.

When restricted shares for employees of the company are issued, other equity - unearned employee benefits is recognized on the grant date, with a corresponding increase in capital surplus - restricted shares for employees. If restricted sha res for employees are granted for consideration and should be returned, they are recognized as payables.

At the end of each reporting period, the Company revises its estimate of the number of stock options expected to vest. The impact of the revision of t he original estimates is recognized in profit or loss such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the capital surplus - stock options and capital surplus – restricted stock award.

(17)Taxation
Income tax expense represents the sum of the tax currently payable and deferred tax. A. Current tax

An additional profit-seeking income tax shall be levied at the rate of ten percent on such undistributed surplus earnings for income tax expenses by a shareholder resolution, according to Income Tax Act.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

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B. Deferred tax
Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the parent company only financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are gener ally recognized for all deductible temporary differences, net operating loss carryforwards and tax credits for research and development expenses to the extent that it is probable that taxable profits will be available against which those deductible tempora ry differences can be utilized.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of th e deferred tax asset to be recovered. The deferred tax assets which originally not recognized is also reviewed at the end of each reporting period and recognized to the extent that it is probable that sufficient taxable profits will be available to allow a ll or part of the deferred tax asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the year in which the liability is settled or the asset is realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

C. Current and deferred tax for the year
Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.
;CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY In the application of the aforementioned Company’s accounting policies, the Company is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily ap parent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the year in which the estimate is revised if the revision affects only that year, or in the year of the revision and future years if the revision affects both current and future years.

(1)Estimated impairment of financial assets
The provision for impairment of trade receivables and investments in debt instruments is based on the Company’s assumptions about risk of default and expected loss rates. The Company uses judgment in making these assumptions and in selecting the inputs to th e impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period. For details of the key assumptions and inputs used, see Notes 1 0. Where the actual future cash inflows are less than expected, a material impairment loss may arise.
(2)Write-down of inventory Net realizable value of inventory is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to make the sale. The estimation of net realizable value was based on current market conditions and the historical experience of selling products of a similar nature. Changes in market conditions may have a material impact on the estimatio n of net realizable value.
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6. CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS
	December 31,		December 31,
		2019		2018
Cash on hand and revolving funds	$	183	$	142
Checking accounts and demand deposits in banks		84,112		22,421
Cash equivalents
Time deposits in banks		214,057		179,191
	$	298,352	$	201,754
As the end of reporting period, the interest rate		at market of deposits in		banks is as
follows`：`

	follows`：`	follows`：`
7.	December 31, 2019 Demand deposits in banks 0.01%~0.67% Time deposits in banks 2.10%~2.27% FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS December 31, 2019 Financial assets`－`current Designated as at FVTPL `－`Domestic convertible bonds $ 31,182 `－`Redemption & sell right for convertible bonds - `－`Forward Exchange Agreement(1) - `－`Fund beneficiary certification 3,000 $ 34,182 Financial assets`－`non-current Mandatorily classified as at FVTPL `－`Domestic listed shares $ 15,041 `－`Fund beneficiary certification 15,239 $ 30,280		December 31, 2018
			0.01%~0.46% 3.00%~3.30% December 31, 2018
		Financial assets`－`current Designated as at FVTPL `－`Domestic convertible bonds `－`Redemption & sell right for convertible bonds `－`Forward Exchange Agreement(1) `－`Fund beneficiary certification Financial assets`－`non-current Mandatorily classified as at FVTPL `－`Domestic listed shares `－`Fund beneficiary certification
				$ 46,556 1 916 - $ 47,473 $ 14,846 - $ 14,846

(1)At the end of the reporting period, outstanding forwa rd exchange contracts not under hedge accounting are as follows:

December 31, 2018

December 31, 2018
Buy Foreign exchange contracts	Currency USD/NTD	MaturityDate 2019.02.25 2019.02.25 2019.04.03 2019.03.25 2019.04.25 2019.04.25	Notional Amount (In Thousands)
			USD 2,000/NTD 61,660 USD 1,000/NTD 30,640 USD 830/NTD 25,366 USD 3,100/NTD 94,931 USD 1,490/NTD 45,445 USD 1,390/NTD 42,356

The Company entered into forward exchange contracts to manage risk exposures due to exchange rate fluctuations of foreign currency denominated assets and liabi lities.

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8. Financial assets measured at FVTOCI Investments in equity instruments

Current Domestic Listed preference shares Non-current Domestic Listed shares and emerging market shares Listed preference shares Unlisted shares	December 31, 2019 $ - $ 64,173 124,507 3,743 $ 192,423	December 31, 2018	December 31, 2018
			$ 7,865 $ 60,544 72,329 4,265 $ 137,138

These long-term investments in ordinary and preferred shares are held for receiving profits, under medium to long-term business development strategic purposes. Accordingly, the Company’s management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short -term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Company’s strategy of holding these investments for long-term purposes.

The Company has recognized the NT4,366 thousand and NT 5,092 thousand of dividend income in 2019 and 2018, separately.

9. FINANCIAL ASSETS AT AMORTIZED COST

Current Domestic investment Time deposits with original maturities more than three months(1) Repurchase Bond(2) Non-current Domestic investment Pledged Time Deposit(3) Barclays Bank Coupon Bond(USD)(4) Prufin Perpetual Corp. Bond(USD)(5) AT&T Corp. Bond(USD) (6) Yuanta Securities Asia Financial Services Limited 2018 Non-secured USD-denominated Private Fixed Rate Notes (7)	December 31, 2019 $ 292,313 391,239 $ 683,552 $ 15,513 15,807 31,179 16,580 - $ 79,079	December 31, 2018	December 31, 2018
			$ 560,236 - $ 560,236 $ 15,398 - - - 61,430 $ 76,828

(1) As of December 31, 2019 and 2018, the market interest rate of time deposit over 3 months portion is 1.02%~2.33% and 1.01%~3.30%, respectively.
(2) As of December 31, 2019, the market interest rate of repurchase bond over 3 months portion is 1.02%~2.33% and 1.01%~3.30%, respectively.
(3) Please refer to Note 27 for more details on financial assets at amortized cost under pledge.
(4) The Company purchased Barclays Bank Coupon Bond (USD) by USD 527 thousand, with a coupon rate of 4.836%, on August, 2019.
(5) The Company purchased Prufin Perpetual Corp (USD) by USD 1,040 thousand, with a coupon rate of 4.875%, on August, 2019.
(6) The Company purchased AT&T Corp (USD) by USD 553 thousand, with a coupon rate of 4.50%, on November, 2019.
(7) The Company purchased Yuanta Securities Asia Financial Services Limited issued 5 -year Non-secured Fixed Rate Notes, with the face va lue of USD 2,000 thousand and a coupon rate of 4.10%, on August, 2018, and then selling all bonds by 64,954 thousand, for adjustment for the portion of the investment August, 2019, 3,745 thousand recognized as net profit upon derecognition of financial ass ets measured at amortized cost.
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10. NOTES AND TRADE RECEIVABLE

NOTES AND TRADE RECEIVABLE
Notes receivable Measured at amortized cost Notes receivable Trade receivable Overdue receivables Less:Allowances for impairment loss - trade receivable Less:Allowances for impairment loss - overdue receivables		December 31, 2019 $ 276,895 1,757,064 20,816 14,694 ) 20,816) $ 2,019,265		December 31, 2018
	( (		( (	$ 160,573 1,739,414 20,365 21,046 ) 20,365) $ 1,878,941

The average credit period of sales of goods of the Company was 60-90 days, and no interest was charged on trade receivable.

In order to minimize credit risk, the Company’s management has delegated a team responsible for determining credit limits, credit approvals and othe r monitoring procedures to ensure that follow-up action is taken to recover overdue receivables. In addition, the Company reviews the recoverable amount of each individual trade receivable at the end of the reporting period to ensure that adequate allowanc e is made for possible irrecoverable amounts. In this regard, the Company’s management believes the Company’s credit risk was significantly reduced.

The Company applies the simplified approach to providing for expected credit losses prescribed by IFRS 9, which permits the use of lifetime expected loss provision for all trade receivable. The expected credit losses of trade receivable on durable are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor’s past experience of receivable and current financial position, expectation of GDP and prospect of the industry, deciding the rate of the expected credit losses by the different levels of credit limits of customers and actual conditions, based on the degree of doubtful accounts triggered by customers of different industries.

The Company writes off an account receivable when there is information indicating that the respective debtor is experiencing severe financial difficulty and there is no realistic prospect of recovery of the receivable. For accounts receivable that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables which are due. Where recoveries are made, these are recognized in profit or loss.

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The following table details the loss allowance of trade receivable: December 31, 2019

December 31, 2019
Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost December 31, 2018 Gross carrying amount Loss allowance (Lifetime ECLs) Amortized cost	Not Past Due $ 1,978,112 ( 3,903) $ 1,974,209 Not Past Due $ 1,845,405 ( 4,614) $ 1,840,791	1-30 Days Past Due $ 4,755 ( 1,879) $ 2,876 1-30 Days Past Due $ 14,013 ( 3,323) $ 10,690	31-60 Days Past Due $ 12,731 ( 5,400) $ 7,331 31-60 Days Past Due $ 39,184 ( 12,598) $ 26,586	61-90 Days Past Due $ 696 ( 347) $ 349 61-90 Days Past Due $ 1,385 ( 511) $ 874	More Than 90 Days Past Due $ 58,481 ( 23,981) $ 34,500 More Than 90 Days Past Due $ 20,365 ( 20,365) $ -	Total
						$ 2,054,775 ( 35,510) $ 2,019,265 Total
						$ 1,920,352 ( 41,411) $ 1,878,941

The movements of the loss allowance of accounts receivab le were as follows:

		2019		2018
Balance at January 1, 2019	$	41,411	$	57,905
Less: Reversal of loss allowance, 2019	(	5,901)	(	16,494)
Balance at December 31, 2019	$	35,510	$	41,411
INVENTORIES
	December 31,		December 31,
		2019		2018
Commodities	$	1,306,416	$	934,052

11. INVENTORIES

Cost of goods sold for inventories were NT$7,960,716 thousand, and NT$5,902,692 thousand, respectively, in 2019 and 2018. Cost of goods sold includes allowance for inventory valuation loss in the amount of NT$29,563 thousand, and NT$73,836 thousand. 12. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

INVESTMENTS ACCOUNTED FOR USING	THE EQUITY METHOD
Investments in subsidiaries (1) Investments in subsidiaries Zotech Co., Ltd. Zerone Win Investment Co., Ltd. Asiaone Holdings Ltd. Name of subsidiaries Zotech Co., Ltd. Zerone Win Investment Co., Ltd. Asiaone Holdings Ltd.	December 31, 2019 December 31, 2018 $ 143,945 $ 136,129 December 31, 2019 December 31, 2018 $ 43,671 $ 44,426 90,729 91,703 9,545 - $ 143,945 $ 136,129 Percentage Of owners' equity and voting right	December 31, 2018
		$ 136,129 December 31, 2018
	December 31, 2019 85.37% 100.00% 100.00%	December 31, 2018
		85.37% 100% -

(1) Investments in subsidiaries

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The Company invested and established Asiaone Holdings Ltd., which engages in investments, in September, 2019, with investment amount to 10,063 thousand and shareholding ratio of 100%.

Profits and losses and other comprehensive income of investments in subsidiaries accounted for using the equity method recognized in the financial statements and audited by CPA in 2019 and 2018.

(2) Investments in associates

Investments in associates
Insignificant associates Chi-Ta International Co., Ltd. ERCENTAGE Chi-Ta International Co., Ltd.	December 31, 2019 December 31, 2018 $ - $ - Percentage Of owners' equity and voting right	December 31, 2018
	December 31, 2019 30.00%	December 31, 2018
		30.00%

Aggregate information of associates that are not individua lly material was summarized as follows:

the Company’s share of: Net loss from continuing operations Other comprehensive income		2019 $ - $ -		2018
			( (	$ 4,057) $ 4,057)

The Company invested and founded Chi-Ta International Co., Ltd., that engaged mainly in researching and manufacturing hardware of auto -used electronic equipment, with investment amount to 10,000 thousand, and share -holding ratio of 30% in March, 2014, since it kept net losses, foresaw decrease in future cash flows, eval uated recognized NT 7,243 thousand of impairment losses thousand in 2015, and recognized book value of 0 thousand after recognized deficits.

The Company invested Trident Pacific technology, Co., Ltd., engaging in researching, developing and packaging of sp ace flight equipment, with investment amount to NT 9,450 thousand, and share -holding ratio of 29.53% in March, 2017. The Company disposed of all shares for NT 340 thousand, recognized NT 49 thousand in losses in November, 2018.

Investments for equity method as well as profit(loss), and other comprehensive income of the Company, haven’t been calculated by reviewed financial report of CPAs, beside the management personnel of the Company considers no material influence as financial statements of the above inve stees haven’t been reviewed by CPAs.

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13. PROPERTY, PLANT AND EQUIPMENT

					Machinery	Machinery
						and		Office	Delivery		Other
			Land	Buildings	equipment		equipment		equipment		equipment		Total
Cost
Balance at January
1, 2018		$234,892		$128,185	$10,139			$34,258	$	-	$	1,141	$ 408,615
Additions			-	-				3,394		2,458		2,365	8,217
Disposals			-	-	(	1,131 )	(	11,163 )		-	(	1,141 ) (	13,435 )
Reclassification			-	-				455		-		6,204	6,659
Balance at
December 31,
2018		$234,892		$128,185	$	9,008		$26,944	$	2,458	$	8,569	$ 410,056
Accumulated
depreciation and
impairment
Balance at January
1, 2018		$	-	$ 68,034	$10,135			$20,645	$	-	$	982	$ 99,796
Disposals			-	-	(	1,131 )	(	11,145 )		-	(	1,078 ) (	13,354 )
Depreciation			-	1,816		4		6,575		492		1,801	10,688
Balance at
December 31,
2018		$	-	$ 69,850	$	9,008		$16,075	$	492	$	1,705	$ 97,130
Carrying amounts at
December 31, 2018		$234,892		$ 58,335	$	-		$10,869	$	1,966	$	6,864	$ 312,926
Cost
Balance at January
1, 2019		$234,892		$128,185	$	9,008		$26,944	$	2,458	$	8,569	$ 410,056
Additions			-	-		-		7,033		-		-	7,033
Disposals			-	-	(	835 )	(	149 )		-		- (	984 )
Reclassification			-	-		-		758		-		6,966	7,724
Balance at
December 31,
2019		$234,892		$128,185	$	8,173		$34,586	$	2,458	$15,535		$ 423,829
Accumulated
depreciation and
impairment
Balance at January
1, 2019		$	-	$69,850	$	9,008		$16,075	$	492	$	1,705	$ 97,130
Disposals			-	-	(	835 )	(	149 )		-		- (	984 )
Depreciation			-	1,816		-		7,906		492		3,478	13,692
Balance at
December 31,
2019		$	-	$71,666	$	8,173		$23,832	$	984	$	5,183	$ 109,838
Carrying amounts at
December	31,
2019		$234,892		$56,519	$	-		$10,754	$	1,474	$10,352		$ 313,991
Depreciation expenses were depreciated						on a straight -line			basis over		the estimated		useful
life of the asset:
Buildings										7-50 Years
Machinery	equipment									3 Years
Office equipment										3-5 Years
Delivery equipment										5 Years
Other equipment										3 Years

Please refer to Note 27 for more details on property, plant and equipment under pledge.

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14. LEASE ARRANGEMENTS

(1) Right -of - use assets – 2019

ASE ARRANGEMENTS Right-of-use assets–2019
Carrying amounts of right-of-use assets Buildings Office equipment For the Three Months Ended September 30, 2019 Additions to right-of-use assets Depreciation charge for right-of-use assets Buildings $ 1,702 Office equipment 50 $ 1,752 Lease liabilities - 2019 Carrying amounts of lease liabilities Current Non-current	December 31, 2019
		$ 6,787 545 $ 7,332 2019
	$ 8,193 $ 4,165 201 $ 4,366 December 31, 2019
		$ 3,576 $ 3,803

(2) Lease liabilities - 2019

Range of discount rate for lease liabilities was as follows:

Range of discount rate for lease liabilities	was as follows:
Buildings Office equipment ) Other lease information Expenses relating to short-term leases Expenses relating to low-value asset leases Total cash (outflow) for leases SHORT-TERM LOANS Unsecured loans `－`Line of credit loans	December 31, 2019 $ 150,000	December 31, 2019
			1.20% 1.20% 2019
		$ 353 $ 34 ($ 4,797) December 31, 2018
			$ 100,000

(3) Other lease information

; SHORT-TERM LOANS

Interest rate of bank loans is 0.94% on December 31, 2019 and 2018.

;OTHER PAYABLE

OTHER PAYABLE
Salaries and bonuses payable Employees', directors', and supervisors' compensation payable Others	December 31, 2019 $ 78,281 28,367 267,393 $ 374,041	December 31, 2018
			$ 63,414 20,137 155,585 $ 239,136

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17. ;BOND PAYABLE

BOND PAYABLE
Unsecure domestic convertible bonds Less: Discounted bond payable Total of bond payable Less: due components in a year Total	December 31, 2019 $ - - - - $ -	December 31, 2018
		( (	$ 5,300 215) 5,085 5,085) $ -

On May 19, 2014, ZOTC issued no any interest unsecured convertible bonds (the second tranche). The bonds had an aggregate face value of $500,000 thousand, with each unit having a face value of NT$100 thousand, and the offering price was $100.2 0% of the face value, and its conversion period is 5 years from June 20, 2014 to May 9, 2019. The conversion price was $20 per share on issuance date.

Within the period between one month after the issuance date and 40 days before the last convertible date, if the closing price of ZOTC common shares on the TWSE for a period of 30 consecutive trading days before redemption has been at least 30% of the conversion price in effect on each such trading day, or in the event that the principal amount of the convertible bonds originally outstanding is 10% lower than the issued amount of the bonds, ZOTC may redeem all bonds at face value by cash.

The convertible bonds issued over 3 years, the holder could ask the Company to redeem bonds at face value by cash.

The convertible bonds include liabilities and equity. The equity components were accounted for ZOTC as paid-in capital –option. The effective interest rate of liability components recognized is 2.0618%.

Balance on January 1, 2018, liability components Interest (2.0618%) Convertible bonds changed into ordinary shares ( Balance on December 31, 2018, liability components Balance on January 1, 2019, liability components Interest (2.0618%) Convertible bonds changed into ordinary shares ( Balance on December 31, 2019, liability components	$ 9,733 147 4,795) $ 5,085 $ 5,085 15 5,100) $ -

18. RETIREMENT BENEFIT PLANS

(1)Defined contribution plans

The plan under the R.O.C. Labor Pension Act (the “Act”) is deemed a defined contribution plan. Pursuant to the Act, the Company has made monthly contributions equal to 6% of each employee’s monthly salary to employees’ pension accounts.

(2)Defined benefit plans

The Company has defined benefit plans under the R.O.C. Labor Standards Law that provide benefits based on an employee’s length of service and average monthly salary for the six-month period prior to retirement. The Company contributes an amount equal to 2% of salaries paid each month to their respective pension funds (the Funds), which are administered by the Labor Pension Fund Supervisory Committee (the Committee) and deposited in the Committee’s name in the Bank of Taiwan. Before the end of each year, the Company assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The Funds are operated and managed by Bureau of Labor Funds, Ministry of Labor; as such, the Company does not have any right to intervene in the investments of the Funds.

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Amounts recognized in respect of these defined benefit plans in the parent company only balance sheets were as follows:

Present value of defined benefit obligation Fair value of plan assets Contribution Net defined benefit liability	December 31, 2019 $ 58,307 ( 36,389) 21,918 $ 21,918	December 31, 2018	December 31, 2018
	(	(	$ 55,117 33,538) 21,579 $ 21,579

Movements in net defined benefit liabilities/assets are as follows:

For the year ended January 1, 2018 Service cost Current service cost Interest expense (income) Recognized in profits or losses Remeasurements Return on plan assets (excluding amounts included in interest, net) Actuarial loss arising from changes in demographic assumptions Actuarial loss (gain) arising from changes in financial assumptions Actuarial loss arising from experience adjustments Recognized in other comprehensive income Contribution from employer For the year ended December 31, 2018 For the year ended January 1, 2019 Service cost Current service cost Interest expense (income) Recognized in profits or losses Remeasurements Return on plan assets (excluding amounts included in interest, net) Actuarial loss arising from changes in demographic assumptions Actuarial loss (gain) arising from changes in financial assumptions Actuarial loss arising from experience adjustments Recognized in other comprehensive income Contribution from employer For the year ended December 31, 2019	Present value of defined benefit obligations $ 52,105 352 586 938 - 513 633 928 2,074 - $ 55,117 $ 55,117 311 551 862 - 400 1,329 599 2,328 - $ 58,307		Fair value of plan assets $ 31,183) - 356) 356) 891 ) - - - 891) 1,108) $ 33,538) $ 33,538) - 339) 339) 1,171 ) - - - 1,171) 1,341) $ 36,389)		Net defined benefit liability/Assets
		( ( ( ( ( ( ( ( ( ( ( ( ( (		( ( ( (	$ 20,922 352 230 582 891 ) 513 633 928 1,183 1,108) $ 21,579 $ 21,579 311 212 523 1,171 ) 400 1,329 599 1,157 1,341) $ 21,918

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The pension costs of the aforementioned defined benefit plans were recognized in profit or loss by the following categories:

Selling and marketing expenses General and administrative expenses		2019 $ 237 286 $ 523		2018
				$ 250 332 $ 582

Through the defined benefit plans under the R.O.C. Labor Standards Law, the Company is exposed to the following risks:

a. Investment risk: The pension funds are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the government’s designated authorities or under the mandated manageme nt. However, under the R.O.C. Labor Standards Law, the rate of return on the Company’s assets shall not be less than the average interest rate on a two -year time deposit published by the local banks and the government is responsible for any shortfall in the event that the rate of return is less than the required rate of return.
b. Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the debt investments of the plan assets.
c. Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The principal assumptions at the measurement date were as follo ws:

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The principal assumptions at the measurement date were as follo ws:	d benefit obligation at the measurement	d benefit obligation at the measurement
December 31,2019 December 31,2018 Discount rate 0.750% 1.000% Future salary increase rate 2.750% 2.750% ;If main actuarial assumption variates within a reasonable extent, as for other assumption remaining unchanged, the present value of defined benefit obligation increases/decreases shall be as follows: December 31,2019 December 31,2018 Discount rate increases by 0.25% ($ 1,333) ($ 1,265) decreases by 0.25% $ 1,382 $ 1,314 Future salary increase rate increases by 0.25% $ 1,335 $ 1,272 decreases by 0.25% ($ 1,295) ($ 1,232)	December 31,2018
	( (	$ 1,265) $ 1,314 $ 1,272 $ 1,232)

Because actuarial assumptions may be correlative with one another, and a single assumption may not variate, the above sensitive analysis cannot indicate actual changes of the present value of defined benefit obligation.

Contribution amounts within 1 year Average due period of the defined benefit obligation 19.EQUITY (1)Ordinary Shares Authorized shares (in thousands) Authorized capital Issued and paid shares (in thousands) Issued capital	December 31,2019 $ 657 9.3 Years December 31,2019 150,000 $ 1,500,000 124,635 $ 1,246,352	December 31,2018	December 31,2018
		$ 630 9.4 Years December 31,2018 150,000 $ 1,500,000 122,896 $ 1,228,965
			150,000 $ 1,500,000 122,896 $ 1,228,965

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The change in share capital is mainly due to bonds payable that changes into ordinary shares, employee stock options exercised and issuance of restricted stock awards.

(2)Capital Surplus

Capital Surplus
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (A) Premium on shares issued above par value Treasury stock transactions Only be used to offset a deficit From shares of changes in equities of subsidiaries (B) Invalid employees stock options May not be used for any purpose Stock options Restricted Stock Awards Employees stock options	December 31,2019 $ 408,165 25,343 2,481 300 - 8,156 25,691 $ 470,136	December 31,2018
			$ 399,648 25,343 2,481 300 433 - 18,310 $ 446,515

A. Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentag e of the Company’s paid-in capital surplus and once a year).
B. The capital surplus from share of unrealized changes in equities of subsidiaries not acquired or disposed is an affective recognized by changes in equity of subsidiaries, or the Company recognizes subsidiaries’ capital surplus adjustments for equity method.
(3)Retained earnings and dividend policy

The Company’s Articles of Incorporation provide that, when allocating the net profits for each fiscal year, ZOTC shall first pay taxes and offset its losses in previous years and then set aside the legal capital reserve at 10% of the profits left over, and then set aside or reverse the legal capital reserve. Any balance left over shall be added accumulated undistributed earnings of the previous year and allocated according to the resolution, provided from the board meeting, of the shareholders’ meeting. Please reference the distribution policy regulated by the Company’s Articles of Incorporation of employees’, directors’ and supervisors’ compensation for Note 20-6.

Distribution of earnings shall be made preferably by way of surplus cash dividend, according to future capital budget plan, and operating fund requirements. The Company considers its influences on diluted earning per shares and return on equit y, but the ratio for cash dividend shall not exceed 10% of the total distribution.

The appropriation for legal capital reserve shall be made until the reserve equals the Company’s paid-in capital. The reserve may be used to offset a deficit, or be distributed as dividends in cash for the portion in excess of 25% of the paid -in capital if the Company incurs no loss.

Under Rule No. 1010012865 and Rule No. 1010047490 issued by the FSC and the directive titled “Questions and Answers for Special Reserves Appro priated Following Adoption of IFRSs”, the Company shall appropriate or reverse to a special reserve.

The appropriations of 2018 and 2017 earnings have been approved by ZOTC’s shareholder ’s meeting held on June 13, 2019 and June 11, 2018, respectively, were as follows:

shareholder ’s meeting held follows:	on June 13, 2019 and June 11,	2018, respectively, were as	2018, respectively, were as
Legal capital reserve (Reversal of) Special reserve Cash dividends	Appropriation of Earnings For Fiscal Year 2018 For Fiscal Year 2017 $ 25,294 $ 19,598 1,343 ( 1,222 ) 184,603 159,484	Dividends Per Share(NT$)
	For Fiscal Year 2018 $ 25,294 1,343 184,603	For Fiscal Year 2018 $ 1.5	For Fiscal Year 2017
			$ 1.3

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The appropriations of earnings for 2019 had been proposed by the Company’s board of directors on February 26, 2020. The appropriations and dividends per share were as follows:

were as follows:
Legal reserve Reversal of Special reserve Cash dividends	Appropriation of Earnings $ 35,131 ( 16,844 ) 249,574	Dividends Per Share (NT$)
		$ 2.0

The appropriations of earnings for 2019 are subject to the resolution of the shareholders’ meeting to be held on June 1 0, 2020.

(4) Other equity
A. Unrealized Gain/Loss from financial assets measured at FVTOCI

Balance at January 1, 2019 In respect of the current period Unrealized profits and losses`－`equity instruments Cumulative gain (loss) of equity instruments transferred to retained earnings due to disposal Balance at December 31, 2019		2019 $ 16,844 ) 27,604 7,105 $ 17,865		2018
	(		( ( (	$ 10,954 ) 6,664 ) 774 $ 16,844)

B. Unearned employee benefit

In the shareholders’ meetings held on June 11, 2018, the shareholders approved a restricted share plan for employees. Refer to Note 2 3 for the information of restricted shares issued.

a restricted share plan for employees. Refer to Note 2 3 for restricted shares issued.	the	information of
Balance, beginning of period Issued at the current period Share-based payment expenses recognized Balance, end of period		2019
	( (	$ - 15,156 ) 4,767 $ 10,389)

20. NET INCOME

(1)Other income

Other income
Interest income Dividend income Rental income Others Other gains and losses Losses(gains) on financial assets/liabilities at FVTPL Net foreign currency exchange gains (losses) Losseson disposal of Property, plant and equipment Losses on disposal of investment accounted for using the equity method		2019 $ 22,488 4,366 790 6,077 $ 33,721 2019 $ 7,359 163 ) - - $ 7,196		2018
				$ 16,502 5,092 1,769 8,809 $ 32,172 2018
	(		( ( (	$ 247 ) 3,126 2 ) 49) $ 2,828

(2)Other gains and losses
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(3)Financial costs Interests on bank borrowings Interest on lease liabilities Interests on convertible bonds Total (4)Depreciation & amortization Property, plant and equipment Right-of-use assets Intangible assets An analysis of depreciation by function Operating expenses An analysis of amortization by function Operating expenses (5)Employee benefits expense Post-employment benefits Defined contribution plans Defined benefit plans`（`Note 18`）` Share-Based Payment Equity Swap Other employee benefits Salaries expense Labor and health insurance expenses Others Employee benefits expense, Total Employee benefits expense summarized by function Recognized in operating expenses 2019 Operating costs Operating Expenses Salaries expense $ - $267,994 Labor and health insurance expenses - 17,287 Pension expenses - 8,981 Directors’ remuneration - 7,255 Other employee benefits - 18,857 Total $ - $320,374	(3)Financial costs Interests on bank borrowings Interest on lease liabilities Interests on convertible bonds Total (4)Depreciation & amortization Property, plant and equipment Right-of-use assets Intangible assets An analysis of depreciation by function Operating expenses An analysis of amortization by function Operating expenses (5)Employee benefits expense Post-employment benefits Defined contribution plans Defined benefit plans`（`Note 18`）` Share-Based Payment Equity Swap Other employee benefits Salaries expense Labor and health insurance expenses Others Employee benefits expense, Total Employee benefits expense summarized by function Recognized in operating expenses 2019 Operating costs Operating Expenses Salaries expense $ - $267,994 Labor and health insurance expenses - 17,287 Pension expenses - 8,981 Directors’ remuneration - 7,255 Other employee benefits - 18,857 Total $ - $320,374	(3)Financial costs Interests on bank borrowings Interest on lease liabilities Interests on convertible bonds Total (4)Depreciation & amortization Property, plant and equipment Right-of-use assets Intangible assets An analysis of depreciation by function Operating expenses An analysis of amortization by function Operating expenses (5)Employee benefits expense Post-employment benefits Defined contribution plans Defined benefit plans`（`Note 18`）` Share-Based Payment Equity Swap Other employee benefits Salaries expense Labor and health insurance expenses Others Employee benefits expense, Total Employee benefits expense summarized by function Recognized in operating expenses 2019 Operating costs Operating Expenses Salaries expense $ - $267,994 Labor and health insurance expenses - 17,287 Pension expenses - 8,981 Directors’ remuneration - 7,255 Other employee benefits - 18,857 Total $ - $320,374	(3)Financial costs Interests on bank borrowings Interest on lease liabilities Interests on convertible bonds Total (4)Depreciation & amortization Property, plant and equipment Right-of-use assets Intangible assets An analysis of depreciation by function Operating expenses An analysis of amortization by function Operating expenses (5)Employee benefits expense Post-employment benefits Defined contribution plans Defined benefit plans`（`Note 18`）` Share-Based Payment Equity Swap Other employee benefits Salaries expense Labor and health insurance expenses Others Employee benefits expense, Total Employee benefits expense summarized by function Recognized in operating expenses 2019 Operating costs Operating Expenses Salaries expense $ - $267,994 Labor and health insurance expenses - 17,287 Pension expenses - 8,981 Directors’ remuneration - 7,255 Other employee benefits - 18,857 Total $ - $320,374	2019 $ 1,949 90 15 $ 2,054 2019 $ 13,692 4,366 776 $ 18,834 $ 18,058 $ 776 2019 $ 8,458 523 8,981 $ 16,198 259,051 17,287 18,857 295,195 $ 320,374 $ 320,374 Total Operating costs $267,994 $ - 17,287 - 8,981 - 7,255 - 18,857 - $320,374 $ -	2019 $ 1,949 90 15 $ 2,054 2019 $ 13,692 4,366 776 $ 18,834 $ 18,058 $ 776 2019 $ 8,458 523 8,981 $ 16,198 259,051 17,287 18,857 295,195 $ 320,374 $ 320,374 Total Operating costs $267,994 $ - 17,287 - 8,981 - 7,255 - 18,857 - $320,374 $ -	2019 $ 1,949 90 15 $ 2,054 2019 $ 13,692 4,366 776 $ 18,834 $ 18,058 $ 776 2019 $ 8,458 523 8,981 $ 16,198 259,051 17,287 18,857 295,195 $ 320,374 $ 320,374 Total Operating costs $267,994 $ - 17,287 - 8,981 - 7,255 - 18,857 - $320,374 $ -			2018	2018
									$ 211 - 147 $ 358 2018
									$ 10,688 - 626 $ 11,314 $ 10,688 $ 626 2018
							$ 6,984 582 7,566 $ 10,252 209,712 14,313 13,574 237,599 $ 255,417 $ 255,417 2018

Operating costs		Operating Expenses		Total	Operating costs		Operating Expenses			Total
	$ - - - - - $ -		$267,994 17,287 8,981 7,255 18,857 $320,374	$267,994 17,287 8,981 7,255 18,857 $320,374		$ - - - - - $ -		$214,664 14,313 7,566 5,300 13,574 $255,417		$214,664 14,313 7,566 5,300 13,574 $255,417

The Company’s average number of employees is 235 and 201(persons) in 2019 and 2018, including average number of directors, who act as an employees of the Company, is 5(persons). The calculation basis of average number of employees is the same as that of employee benefits expenses.

The company’s average employee benefits expenses are NT$ 1,361 thousand and NT$ 1,276 thousand in 2019 and 2018, respectively; The company’s average employee salaries expenses are NT$ 1,165 thousand and NT$ 1,095 thousand in 2019 and 2018, respectively, and the adjusted rate of change of employee salaries expenses is 6%.

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(6)Employees’, directors, and supervisors’ compensation

ZOTC shall allocate compensation to employees’, Director’s, and Supervisor’s of ZOTC not less than 1%~15% and not more than 3% of annual profits during the period, respectively, and the amount of employees’, Director’s, and Supervisor’s compensation for the years ended December 31, 2019 and 2018, with resolution of the board of directors on Feb. 26, 2020 and Feb. 27, 2019, is as follows:

Estimate Rate

Estimate Rate	Estimate Rate
2019 Employee compensation 4.00% Director’s & Supervisor’s compensation 2.00% Amount 2019 Cash Stock Employee compensation $ 18,911 $ - Director’s & Supervisor’s compensation 9,456 -		2019			2018
					4.00% 2.00% 2018
				Cash Stock
	$ 18,911		$ -	$ 13,425		$ -
	9,456		-	6,712		-

If changes in the very amount after the end of the reporting period, it will be booked next year, based on accounting estimate regulations.

The distribution amount of employees’, director’s, and supervisor’s compensation in 2018, and 2017 has no difference compared to the recognized amount of the parent company only financial statements in 2018 and 2017.

;Please search for relevant information about employees’, director’s, and supervisor’s compensation, resolved by the board of directors in 2019 and 2018, on the website of “Market Observation Post System” of TWSE.

(7)Foreign exchange gain (loss)

Foreign exchange gain (loss)
Foreign exchange gain Foreign exchange loss Gain (loss), net		2019 $ 40,445 40,608) $ 163)		2018
	( (		(	$ 13,900 10,774) $ 3,126

21. INCOME TAXES

(1)Income tax recognized in profit or loss

The major components of tax expenses wer e as follows:

Current tax In respect of the current year Surtax on Undistributed Retained Earnings Adjustments for previous years Deferred tax Changes in tax rates In respect of the current year Income tax expense recognized in profit or loss		2019 $ 95,484 2,269 408) 97,345 - 4,243) $ 93,102		2018
	( (		( (	$ 78,602 1,751 1 80,354 2,756 ) 15,060) $ 62,538

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A reconciliation of accounting profit and income tax expense and the applicable tax rate were as follows:

tax rate were as follows:
Accounting profit before tax from continuing operations Income tax expense calculated at the statutory rate Tax-exempt income Tax effect of expenses not deductible for tax Others Additional Surtax on Undistributed Retained Earnings Changes in tax rates The adjustment of current income tax expenses in the past year Total income tax expense recognized in profit or loss		2019 $ 444,415 $ 88,883 1,771 ) 3,825 304 2,269 - 408) $ 93,102		2018
	( (		( ( (	$ 315,477 $ 63,095 1,493 ) 4,134 2,194 ) 1,751 2,756 ) 1 $ 62,538

In 2018, the Income Tax Law in the R.O.C. was amended and, starting from 2018, the corporate income tax rate was adjusted from 17% to 20%. In addition, the tax rate for 2018 unappropriated earnings was reduced from 10% to 5%.

(2)Income tax expense recognized in other comprehensive income

Deferred tax Changes in tax rates In respect of the current period `－`Remeasurement of defined benefit plans Total income tax expense recognized in other comprehensive income		2019 $ - 231 $ 231		2018
				$ 438 236 $ 674

(3)Deferred tax balances

Movements of deferred tax assets and deferred tax liabilities were as follows:

2019

2019
D e f e r r e d t a x a s s e t s Temporary differences Allowance for loss on decline in value of inventory Allowance for bad debts Defined benefit plans Others Deferred tax liabilities Temporary differences Unrealized foreign exchange profits		Opening Balance $ 22,748 4,442 4,316 5,815 $ 37,321 $ 736	Recognized in Profit or Loss $ 5,913 ( 1,449 ) ( 164 ) - $ 4,300 $ 57	Recognized in Other Comprehensive Income $ - - 231 - $ 231 $ -		Closing Balance
			( (			$ 28,661 2,993 4,383 5,815 $ 41,852 $ 793

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2018

2018
D e f e r r e d t a x a s s e t s Temporary differences Allowance for loss on decline in value of inventory Allowance for bad debts Financial instruments measured at cost Defined benefit plans Others Deferred tax liabilities Temporary differences Unrealized foreign exchange profits		Opening Balance $ 6,784 3,525 3,557 4,663 $ 18,529 $ 434	Recognized in Profit or Loss $ 15,964 917 85 1,152 $ 18,118 $ 302	Recognized in Other Comprehensive Income $ - - 674 - $ 674 $ -		Closing Balance
						$ 22,748 4,442 4,316 5,815 $ 37,321 $ 736

(4)Income tax assessment

The Company’s tax returns through 2017 had been assessed by the tax authorities.

22. EARNINGS PER SHARE

The earnings and weighted average number of ordinary shares outstanding in the computation of earnings per share were as follows:

;Net Profit for the Period

Net Profit for the Period
Net Profit for the Period Effect of potentially dilutive ordinary shares: Effect of convertible bonds after tax Earnings in computation of diluted earnings per share Shares Weighted average number of ordinary shares outstanding in computation of basic earnings per share Effect of potentially dilutive ordinary shares`：` Convertible bonds Employee compensation Employee stock options Restricted stock award Weighted average number of ordinary shares outstanding in computation of diluted earnings per share	2019 2018 $ 351,313 $ 252,939 15 148 $ 351,328 $ 253,087 Units:Thousand shares 2019 2018 123,354 122,660 56 486 839 871 2,167 634 202 - 126,618 124,651

		122,660 486 871 634 - 124,651

If the Company will distribute bonus to employees and the bonus will be settled in cash or shares, the Company will assume that the entire amount of the compensation or bonus will be settled in shares and the resulting poten tial shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, if the effect is dilutive. Such dilutive effect of the potential shares is included and considered in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

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The exercise price of the third and fourth issued employee stock options is higher than average market price of shares in 2018. Owing to anti-diluted, it doesn’t be calculated in each diluted earnings per share.

23. ;SHARE -BASED PAYMENT ARRANGEMENTS

(1)Employee Share Option Plan

In August 2015, September 2016, January 2018, and September 2018, 1,000, 1,860, 2000, and 2,000 options were granted to qualified employees of the Company, and each option entitles the holder to subscribe for 1,000 thousand ordinary shares of the Company when exercisable. The options granted are valid for 6 years and shall be exercised a portion of them after two years from the date of grant. The options were granted at an exercise price equal to the fair value of the Company’s ordinary shares on the grant date. For any subsequent changes in the Company’s ordinary shares, the exercise price of options will be adjusted by the regulated formula, accordingly.

Information about employees’ stock options was as follows:

Employee Stock options Balance, beginning of period Options vested Options exercised Invalid options Outstanding options at the end of the period Options exercised at the end of the period Weighted-average fair value of options vested(NT$)	2019 Number of Options (In Thousands) Weighted Average Exercise Price (NT$) 6,468 $ 17.68 - - ( 701 ) 13.30 ( 114) 15.91 5,653 17.18 1,049 $ -	2018	2018
	Number of Options (In Thousands) 6,468 - ( 701 ) ( 114) 5,653 1,049 $ -	Number of Options (In Thousands) 2,633 4000 ( 105 ) ( 60) 6,468 912 $ 6.73	Weighted Average Exercise Price (NT$)
	( (	( (	$ 15.23 19.73 14.25 14.05 17.68

Information about outstanding options at the end of reporting period was as follows:

December 31,2019 Range of Exercise Price(US$) Weighted- Over-Age Remaining Contractual Life(Years) $12.40`（`Note`）` 1.67 14.20`（`Note`）` 2.68 17.80`（`Note`）` 4.01 19.50`（`Note`）` 4.67	December 31,2018	December 31,2018
Range of Exercise Price(US$) $12.40`（`Note`）` 14.20`（`Note`）` 17.80`（`Note`）` 19.50`（`Note`）`	Range of Exercise Price(US$) $ 13.10`（`Note`）` 15.00`（`Note`）` 18.80`（`Note`）` 20.65	Weighted- Over-Age Remaining Contractual Life(Years)
		2.67 3.68 5.01 5.67

Note: The Issued price will be adjusted by methods of issuance.

The Company adopts BOPM and Black-Scholes price model to evaluate inputs of stock options in September 2018, January 2018, September 2016 and August 2015 as follows:

follows:
Securities price of the vested date Exercised price Foreseeable volatility rate Duration Foreseeable dividend rate Risk-free interest rate	September,2018 20.65 Dollars 20.65 Dollars 32.96% 6 Years 0% 0.72%	January,2018	September,2016	August,2015
		19.85 Dollars 19.85 Dollars 33.81% 6 Years 0% 0.74%	16.95 Dollars 16.95 Dollars 38.26% 6 Years 0% 0.56%	15.65 Dollars 15.65 Dollars 39.14%~40.47% 4~5 Years 0% 0.77%~0.87%

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The compensation cost recognized were $11,431 thousand and $10,252 thousand for the years ended December 31, 2019 and 2018, respectively.

(2)Restricted stock awards

The shareholders meeting of the company, on June 11, 2018, resolved to issue restricted stock awards amounting to NT$7,000 thousand, consisting of 700 thousand shares, respectively, par value in NT$10, the subscription price is NT$0(The issue price is NT$ 0), and authorized the Board to decide the issue price at the issuance date. The Board resolved to issue NT$7,000 thousand, with total share number of 700 thousand shares, on April 30, 2019 and the record date of issuance is June 13, 2019.

An employee who remains employed at the company after the period as follows has elapsed from the time of RSA and who personal performance have met with the criteria listing, will be eligible for vesting of an installment of the shares.

A. An employee who remains employed at the company after 1 year has elapsed from the time of RSA, and who personal performance have met with the criteria listing of 75 scores and above, will be eligible for vesting of an installment of 25% of the shares.
B. An employee who remains employed at the company after 2 year has elapsed from the time of RSA, and who personal performance have met with the criteria listing of 75 scores and above, will be eligible for vesting of an installment of 25% of the shares.
C. An employee who remains employed at the company after 3 year has elapsed from the time of RSA, and who personal performance have met with the criteria listing of 75 scores and above, will be eligible for vesting of an installment of 25% of the shares.
D. An employee who remains employed at the company after 4 year has elapsed from the time of RSA, and who personal performance have met with the criteria listing of 75 scores and above, will be eligible for vesting of an installment of 25% of the shares.

After employees received the vested shares from the Company, it will redeem and cancel the issued restricted employee shares as employees breach the labor contract and working regulations, for the restricted employee new shares that don't meet the vesting conditions.

When employees fail to meet the vesting conditions of restricted employee new shares as redeemed by the Company without charge will be cancelled, based on the relevant regulations.

Compensation costs by issuance of restricted stock awards recognized were NT$4,767 thousand in 2019, respectively. As of December 31, 2019, unearned employee benefits totaled NT$10,389 thousand, accounted for as an decrease in other equity.

24. CAPITAL RISK MANAGEMENT

The Company engages mainly in the agent of software, without any plans of imposed capital requirements at present and in the future. The Company manages its capital to ensure requirements of operating funds and dividend expenses, based on growth and development of scale of enterprise and prospective of the industry. The Company periodically reviews the policy of capital risk management, for seeking a steady and conservative policy.

The capital structure of the Company consists of net debt and equity (comprising share capital, capital reserves, retained earnings and other equity).

The Company is not subject to any externally imposed capital requirements.

25. FINANCIAL INSTRUMENTS

(1)Information about Fair value of financial instruments that are not measured at fair value

Except as detailed in the following table, the management believes the carrying amounts of financial liabilities not measured at fair value recognized in the parent company only financial statements approximate or cannot be measured their fair values:

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Financial Assets Measured at amortized cost -domestic corporate bonds -foreign corporate bonds Financial liabilities Convertible bonds	December 31, 2019 Carrying Amount Fair Value $ - $ - 63,566 64,992 - - - -	December 31, 2018	December 31, 2018
	Carrying Amount $ - 63,566 - -	Carrying Amount	Fair Value
		$ 61,430 - 5,085	$ 60,778 - 6,273

(2)Information about fair value of financial instruments measured at fair value on a recurring basis.

A.Fair value hierarchy

	December 31, 2019 Financial assets at FVTPL Convertible bonds Listed shares and emerging market shares Fund beneficiary certificate Total Financial assets at FVTOCI Equity investments `－`Listed shares and emerging market shares `－`Unlisted shares Total December 31, 2018 Financial assets at FVTPL Convertible bonds Listed shares and emerging market shares Derivatives Total Available-for-sale financial assets Equity investments `－`Listed shares and emerging market shares `－`Unlisted shares Total		Level 1 $ 31,182 15,041 15,160 $ 61,383 $ 178,242 - $ 178,242 Level 1 $ 46,556 14,846 - $ 61,402 $ 131,897 - $ 131,897		Level 2		Level 3 $ - - 3,079 $ 3,079 $ 10,438 3,743 $ 14,181 Level 3 $ - - - $ - $ 8,841 4,265 $ 13,106		Total
					$ - - - $ - $ - - $ - Level 2				$ 31,182 15,041 18,239 $ 64,462 $ 188,680 3,743 $ 192,423 Total
					$ - - 917 $ 917 $ - - $ -				$ 46,556 14,846 917 $ 62,319 $ 140,738 4,265 $ 145,003

There were no transfers between Level 1 and Level 2 in 2019 and 2018, respectively.

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B. Valuation techniques and inputs applied for the purpose of measuring Level 2 fair value measurement

value measurement
Financial Instruments Derivatives—Foreign exchange forward contract Derivatives—Redemption & sell right of convertible bonds	Valuation Techniques and Inputs
	Discounted Cash Flow Method: Using exchange rate at the end period evaluates future cash flow through the contract. Disclosing the discount rate of credit risks in each counterpart should be separately discounted. Valuation model of binomial tree of convertible bond: Using securities prices, no risk rate, and risk discount rate evaluates fair values of financial assets of convertible bonds.

C. Valuation techniques and inputs applied for Level 3 fair value measurement

The market approach is used to arrive at their fai r value, for which, the estimate and assumption regarding relevant information of expexted present value of profits and losses calculated by held investments with reference to the publicly traded company and similar companies.

(3)Categories of financial instruments

Categories of financial instruments
Financial assets Financial assets measured at FVTPL Mandatorily measured at FVTPL Financial assets measured at amortized cost (Note 1) Financial assets measured at FVTOCI`－` Investments in equity instruments Financial liabilities Measured at amortized cost(Note 2)	December 31, 2019 $ 64,462 3,107,140 192,423 2,549,613	December 31, 2018
		$ 62,319 2,723,198 145,003 1,989,386

Note 1:The balances included loans and receivables measured at amor tized cost, which comprise cash and cash equivalents, debt instruments with no active market, note receivable, trade receivable, other receivable , and refundable deposits.
Note 2:The balances included financial liabilities measured at amortized cost, whi ch comprise short-term loans, trade payable, other payable, current portion of bonds payable, and deposits received.
(4)Financial risk management objectives and policies

The Company’s principal financial risk management objective is to manage the market risk, credit risk and liquidity risk based on related protocols and internal control procedures. The Company’s financial department measures the aforementioned risks based on the Company’s risk appetite, and reports to the board of directors for carrying out relevant policies at any time.

A. ;Market risk

The Company’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates.

(a)Foreign currency risk

The Company’s purchases and investments are denominated in foreign currencies. Consequently, the Company is exposed to foreign currency risks. To protect against reductions in value of foreign currency denominated assets and the volatility of future cash flows caused by changes in foreign exchange rates, the Company utilizes derivative financial instruments, such as forward exchange contracts and options, for avoiding foreign currency risks.

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The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities of non -functional currency calculated (including those eliminated on consolidation) at the end of the report ing period are set out in Note 29.

Sensitivity analysis

The Company’s exchange rate exposure was in the exchange rate of U.S. dollars.

The sensitivity analysis included only outstanding foreign currency denominated monetary items and adjusts their translation at the end of the reporting period for a 5% change in foreign currency rates. If interest rates had been 5% higher/lower, the Company’s net profit in 2019 and 2018 would increase/decrease by 21,166 thousand and $14,309 thousand, respectively.

(b)Interest rate risk

The Company exposed to the risk of interest rate at fair value, since holding the fixed-rate loan, accessing the interest rate of the bank loan regularly, observing influences on profits or losses from fluctuation range of the interest rate, keeping contact with the bank based on the actual requirement, and acquiring the best interest rate of the loan.

The carrying amount of the Company’s financial assets and financial liabilities with exposure to risks of interest rates at the end of the reporting period were as follows:

period were as follows:
Interest rate risks at fair value `－`Financial assets `－`Financial liabilities Interest rate risks at cash flows `－`Financial assets	December 31, 2019 $ 854,095 157,379 206,706	December 31, 2018
		$ 667,837 100,000 170,838

Sensitivity analysis

The sensitivity analyses below were determined based on the Company’s exposure to interest rates for non-derivative instruments at the end of the reporting period.

If interest rates had been 50 basis points higher/lower and all other variables were held constant, the Company’s pre-tax profit in 2019 and 2018 would increase/ decrease by $1,034 thousand and $854 thousand, respectively. Exposure is triggered by risks of cash flows of the Company’s variable interest rates of deposits.

(c)Other price risk

The Company is exposed to equity price risks arising fro m equity investments of public offering securities. Equity investments should be approved by the management, for controlling risks by holding different investment portfolios.

Sensitivity analysis

The following sensitivity analysis is based on risk expos ure of equity prices at the end of the reporting period.

Assuming a hypothetical increase/decrease of 5% in prices of the equity investments, increased/decreased by NT$3,223 thousand and NT$3,070 thousand, because of the change in fair value of financial assets at FVTPL, respectively., at the end of the reporting period in 2019 and 2018, the other comprehensive income would have increased/decreased by NT$9,621 thousand and NT$7,250 thousand, because of the change in fair value of financial assets at FVTOCI , respectively, at the end of the reporting period in 2019 and 2018.

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B.;Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. As at the end of the reporting period, the Company’s maximum exposure to credit risk which will cause a financial loss to the Company due to failure to discharge an obligation by the counterparties is arising from the carrying amount of the respective recognized financial assets as stated in the parent company only balance sheets.

The Company adopted a policy of only dealing with creditworthy counterparties. Credit exposure is controlled by counterparty limits that are reviewed and approved by the financial department regularly. To decrease a credit risk, the key management personnel of the Company is responsible for decision of rating criteria, credit limits approval, and other censor procedure, etc., in order to collect delinquent trade receivable. Otherwise, the Company reviews each trade receivable to assure allowance of impairment losses of uncollectable bad debts, hence the key management personnel considers credit concentration risk of trade receivable is insignificant.

The credit concentration risk of the current fund is insignif icant, since the Company only transacts with financial institutions with good rating.

Trade receivable consisted of a large number of customers. Ongoing credit evaluation is performed on the financial condition of certain customer’s trade receivable. If necessary, purchasing insurance for credit enhancing procedures is a must.

The credit risk of the Company concentrates on top 5 customers of the Company. As of December 31, 2019 and 2018, the Company’s five largest customers accounted all for 33% of trade receivable, respectively.

C. ; Liquidity risk

The Company manages and maintains sufficient cash and cash equivalents so as to cope with its operations and mitigate the effects of fluctuations in cash flows. The Company’s management supervises financing line of the banking facilitie s and ensures compliance with the terms of loan agreements.

Liquidity & interest rate risk table

;The table below summarizes the due analysis of the maturity profile of the Company’s non-derivative financial liabilities, enacted by contractual undis counted payments of cash flow of financial liabilities, according to remaining contracts on the earliest date on which the Company may be required to pay, including interest and principal of cash flows.

;The following tables detail the bank loans are listed on the earliest date on which the Company may be required to pay without considering the probability of the lending bank executing its rights; other non -derivative financial liabilities are listed at their contract repayment dates.

;December 31, 2019

;December 31, 2019
Non-derivative financial liabilities No Interest-bearing liabilities Lease liabilities Fixed rate instruments ;December 31, 2018 Non-derivative financial liabilities No Interest-bearing liabilities Fixed rate instruments	Less than 1 Year $ 2,398,448 3,639 150,118 $ 2,552,205 Less than 1 Year $ 1,888,601 100,000 $ 1,988,601	1-5 Years $ - 3,831 - $ 3,831 1-5 Years $ - - $ -	5+ Years
			$ - - - $ - 5+ Years
			$ - - $ -

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The operating fund of the Company are sufficient to meet cash flow demand; If the demand exists, it shall be short -term. Thus, bank loans within 1 year are the maximum amounts with available limit of credit. After considering the financial position of the Company, the management does not think the banks will execute their rights of requiring the Company to repay the bank loans.

As of December 31, 2019 and 2018, the Company’s unused short-term credit of limit of the bank were 920,000 thousand and 670,000 thousand, respectively.

The Company’s cash and cash equivalents are sufficient to meet the demand of operating demands; the Company does not apply for the overdraft limit from the bank.

RELATED PARTIES TRANSACTIONS
(1) The Names and Relationships of Related-parties

Name of the related parties Relationship with the Company Zotech Co., Ltd. Subsidiaries Zerone Win Investment Co., Ltd. Subsidiaries Petacom Technology Co., Ltd.) Subsidiaries Wing Will International Co., Ltd. Subsidiaries AsiaOne Holdings Ltd. Subsidiaries

(2)Operating revenue

Operating revenue
Line Items Sales revenue Services revenue	Types of relatedparties Subsidiaries Subsidiaries		2019 $ 17,310 $ 2,476		2018
					$ 1,824 $ 2,243

Prices and payment terms for transactions with related parties and non-related parties were similar.

(3)Purchases(not including loans to related parties and contract asset)

Purchases(not including loans to related parties	Purchases(not including loans to related parties	and contract asset)	and contract asset)
Types of relatedparties Subsidiaries Receivables from related parties Line Items Types of relatedparties Trade receivable Subsidiaries Other receivable Subsidiaries		2019 $ 6,472 December 31, 2019 $ 6,090 104 $ 6,194		2018
Subsidiaries Receivables from related Line Items Trade receivable Other receivable		$		$ 8,966 December 31, 2018

	Subsidiaries Subsidiaries		$ 6,090 104 $ 6,194	$ 397 - $ 397

(4)Receivables from related parties

For the year ended December 31, 2019 and 2018, no impairment loss was recognized for trade receivables from related parties.

(5)Payables to related parties

Line Items Trade payable Other payable	Types of relatedparties Subsidiaries Subsidiaries		December 31, 2019 $ 6,300 - $ 6,300		December 31, 2018
					$ 9,543 10 $ 9,553

(6)Loans to related parties(Recognized as other current assets)

Type s o f r e l a t e dpa r t i e s `／`N a me Subsidiaries Interest income Type s o f r e l a t e dpa r t i e s `／`N a me Subsidiaries	December 31, 2019 $ 10,000 2019 $ 104	December 31, 2018	December 31, 2018
			$ - 2018
			$ -

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(7)Non-operating income

Line Items Types of relatedparties 2019 Rental income Subsidiaries $ 743 Compensation of key management personnel 2019 Short-term employee benefits $ 38,724		2019				2018
						$ 1,595 2018
					$ 26,798

(8)Compensation of key management personnel

;Salaries of the boarders and other key management personnel are decided by personal performance and economic market trend through the compensation committee.

27. PLEDGED ASSETS

;The following assets of the Company are guaranteed by the assets pledged for loans of the bank and broker, as well as tariff of importing commodities.

Property, plant and equipment, Net Pledged Time Deposits(Financial assets at amortized cost`－`non-current)	December 31,2019 $ 209,009 15,513 $ 224,522	December 31,2018	December 31,2018
			$ 293,227 15,398 $ 308,625

SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS
(1)As of December 31, 2019, the Company opens NT 87,000 thousand of cashier order for payment guaranteed for Microsoft Taiwan Corporation.
(2)As of December 31, 2019, the Company opens NT 50,000 thousand of cashier order for payment guaranteed for Microsoft Regional Sales Corporation.

29. ; FOREIGN - CURRENCY- DEMONINATED ASSETS AND LIABILITIES THAT HAVE SIGNIFICANT INFLUENCE

The significant financial assets and liabilities denominated in foreign currencies were as follows:

December 31, 2019

December 31, 2019
Financial assets Monetary items USD Financial liabilities Monetary items USD December 31, 2018 Financial assets Monetary items USD Financial liabilities Monetary items USD	Foreign Currencies $ 31,131 45,251 Foreign Currencies $ 28,142 37,459	Exchange Rate	Carrying Amount
		29.98`（`USD:NTD`）` 29.98`（`USD:NTD`）` Exchange Rate	$ 933,307 $ 1,356,625 Carrying Amount
		30.715`（`USD:NTD`）` 30.715`（`USD:NTD`）`	$ 864,382 $ 1,150,553

Financial liabilities Monetary items USD 37,459 30.715`（`USD:NTD`）` $ 1,150,553	SD:NTD`）` $ 1,150,553	SD:NTD`）` $ 1,150,553
The material foreign exchange profit/loss(realized and unrealized) was as follows: 2019 2018 Foreign currencies Exchange Rate Net Foreign exchange profit(loss) Exchange Rate Net Foreign exchange profit(loss) USD 30.912`（`USD:NTD`）` ($ 163 30.149`（`USD:NTD`）` $ 3,126	unrealized) was as follows: 2018
	Exchange Rate	Net Foreign exchange profit(loss)
		$ 3,126

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30. SEPARATELY DISCLOSED ITEMS

Information on (1) significant transactions and (2) inves tees:

A.; Financing provided to others: Table 1.
B.;Endorsements/guarantees provided:None.
C. ;Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Table 2.
D.; Marketable securities acquired and disposed at costs or prices at least NT$300 million or 20% of the paid-in capital: None.
E.; Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital: None.
F. ;Disposal of individual real estate at pri ces of at least NT$300 million or 20% of the paid-in capital: None.
G.;Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.
H.;Trade receivable from related parties amounting to at lea st NT$100 million or 20% of the paid-in capital: None.
I.;;Trading in derivative instruments: Please refer appendix 7.
J.;Information on investees: Table 3.
(3)Information on investment in Mainland China ： None.
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ZERO ONE TECHNOLOGY CO., LTD. FINANCING PROVIDED TO OTHERS FOR THE YEARS ENDED DECEMBER 31, 2019

Table 1 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

No.	Financing Company	Counter-party	Financial Statement Account	Related Party	Maximum Balance for the Period `（`Note 2`）`	Ending Balance	Amount Actually Drawn	Interest Rate	Nature for Financing `（`Note 3`）`	Transaction Amounts	Reason for Financing	Allowance for Bad Debt	Collateral	Collateral	Financing Limits for Each Borrowing Company `（`Note 4`）`	Financing Company’s Total Financing Amount Limits `（`Note 5`）`	Note
													Name	Item
0	The company	WingWill international Co., Ltd.	Other receivables from related parties	Yes	$10,000	$10,000	$10,000	3%	2	$ -	Operating Capital	$-	`－`	$`－`	$ 242,030	$ 484,061

Note 1 ： The number column is orgarnized as follows ：

(1)Number 0 represents the issuer.
(2)The Counter-party is numbered from 1 in order.

Note 2 ： Maximum Balance of financing provided to others for the Period.

Note 3 ： Reference for the nature for financing provided to others.
(1)1:The borrower has business contact with the creditor.
(2)2:The borrower has short-term financing neccessities.

Note 4 ： For short-term financing necessities, the total amount available for lending purpose shall not exceed 10% of the net worth reviewed or audited by CPA during the period. Note 5 ： The total amount available for lending purpose shall not exceed 20% of the company’s net worth reviewed or audited by CPA during the period.

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Units ： In Thousands of New Taiwan Dollars

ZERO ONE TECHNOLOGY CO., LTD. MARKETABLE SECURITIES HELD FOR THE YEAR ENDED DECEMBER 31, 2019

Table 2

Holding Company	Marketable Securities Type and Issuer’s Name `（`Note 1`）`	Security Issuer’s Relationship with the Holding Company	Financial Statement Account		December 31,2019	December 31,2019		Note
				Shares/Units	Carrying Values	Percentage of Ownership (%)	Market Prices/ Net value of equities
The company	Benificiary certificates KGI Emerging Market Bond 1-5 ETF Fund KGI Kaefer Fund KGI Taiwan Multi-Asset Income Fund Corporate bond Giga Solar Materials Corp.－2 convertible corporate bonds China Airlines－6 convertible corporate bonds Tong Ming Enterprise Co., Ltd.－1stdomestic unsecured convertible corporate bonds Gemtek Technology Co., Ltd. `－`5 convertible corporate bonds Sigurd Microelectronics Corporation.`－`3 convertible corporate bonds Quang Viet Enterprise Co.,Ltd.`－`1 convertible corporate bonds Sheh Fung Screws Co., Ltd.`－`1 convertible corporate bonds Interactive Digital Technologies Inc.`－`1 convertible corporate bonds Barclays Bank Coupon Bond (USD) Prufin Coupon Bond (USD) AT&T Coupon Bond (USD)	`－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－`	Financial assets at FYTPL－ current Financial assets at FYTPL－ non-current Financial assets at FYTPL－ non-current Financial assets at FYTPL－ current Financial assets at FYTPL－ current Financial assets at FYTPL－ current Financial assets at FYTPL－ current Financial assets at FYTPL－ current Financial assets at FYTPL－ current Financial assets at FYTPL－ current Financial assets at FYTPL－ current Financial assets at amortized cost`－`non-current Financial assets at amortized cost`－`non-current Financial assets at amortized cost`－`non-current	75,000 170,437 1,198,020 150`（`Units`）` 30`（`Units`）` 10`（`Units`）` 40`（`Units`）` 30`（`Units`）` 30`（`Units`）` 5`（`Units`）` 10`（`Units`）` 5`（`Units`）` 10`（`Units`）` 5`（`Units`）`	$ 3,000 3,079 12,160 14,550 2,984 985 4,388 3,394 3,236 519 1,126 15,807 31,179 16,580	- - - - - - - - - - - - - -	$ 3,000 3,079 12,160 14,550 2,984 985 4,388 3,394 3,236 519 1,126 16,721 31,611 16,660

（ Continued ）

49 -

Holding Company	Marketable Securities Type and Issuer’s Name `（`Note 1`）`	Security Issuer’s Relationship with the Holding Company	Financial Statement Account		December 31, 2019	December 31, 2019
				Shares/Units	Carrying Values	Percentage of Ownership (%)	Market Prices/ Net value of equities
The company	Securities Cathay Financial Holdings Preferred Stock A Union Bank of Taiwan Preferred Stock A Kaway Information Corp. China Electric Mfg. Corp. ASIX Electronics Corp.	`－` `－` The supervisor of the company `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－` `－`	Financial assets at FYTPL－ non-current Financial assets at FYTPL－ non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current	166,000 80,000 490,000 2,988,000 90,074 1,111,563 175,000 54,000 70,000 400,000 240,000 90,000 230,000 200,000 700,000 200,000 2,500,000	$ 10,657 4,384 17,150 33,167 3,418 10,438 3,743 3,467 3,836 25,720 13,296 5,958 14,720 10,760 36,190 10,560 -	- - 1.60 0.75 0.17 2.82 1.68 - - - - - - - - - 3.45	$ 10,657 4,384 17,150 33,167 3,418 10,438 3,743 3,467 3,836 25,720 13,296 5,958 14,720 10,760 36,190 10,560 -
	Promaster Technology Corp. Unex Technology Corporation Cathay Financial Holdings Preferred Stock A Union Bank of Taiwan Preferred Stock A Fubon Financial Holding Co., Ltd. Preferred Shares B Taishin Financial Holding Co., Ltd. Preferred Stock E CTBC Financial Holding Co., Ltd. Preferred Shares B
	Cathay Financial Holding Co., Ltd. Preferred Stock B Kwong Lung Enterprise Co., Ltd. Preferred Stock A WPG Holdings Limited Preferred Stock A United Orthopedic Corporation Preferred Stock A Miiicasa Holdings (Cayman) Inc.

（ Continued ）

50 -

`（` Concluded `）`

Holding Company	Marketable Securities Type and Issuer’s Name `（`Note 1`）`	Security Issuer’s Relationship with the Holding Company	Financial Statement Account		December 31, 2019	December 31, 2019		Note
				Shares/Units	Carrying Values	Percentage of Ownership (%)	Market Prices/ Net value of equities
Zerone Win Investment Co., Ltd. Petacom Technology Co., Ltd. ZOTECH Co., Ltd.	Duofu Co., Ltd. Jotangi Technology Co., Ltd. Ijoing, Inc. Securities WPG Holdings Limited Preferred Stock A Shin Kong Financial Holding Co.,Ltd. Preferred Stock A Tatung System Technologies Inc. Beneficiary certifications Taishin 1699 Money Market Fund Securities WPG Holdings Limited Preferred Stock A	`－` `－` `－` `－` `－` `－` `－` `－`	Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FVTOCI`－` non-current Financial assets at FYTPL－ current Financial assets at FVTOCI`－` non-current	10,000 796,250 500,000 240,000 50,000 2,000,000 2,300,000 200,000	$ - - - 12,408 2,297 34,300 31,243 10,340	0.27 16.94 10.00 - - 2.26 - -	$ - - - 12,408 2,297 34,300 31,243 10,340

Note 1 ： Securities, indicated by the above table, are derivative from stock, bonds, beneficiary certificates, and the above items, ba sed on IFRS 9 “Financial Instruments”. Note 2 ： Relevant information about Investments in equity of subsidiaries, associates, se e Table 3.

51 -

ZERO ONE TECHNOLOGY CO., LTD.

INFORMATION ON INVESTEES

FOR THE YEAR ENDED DECEMBER 31, 2019

Table 3 (In Thousands of New Taiwan Dollars, Except Specified)

Investor Company	Investee Company	Location	Main Businesses	Investment Amount	Investment Amount	As of December 31,2019	As of December 31,2019	As of December 31,2019	Net Income (Loss) of the Investee	Share of Profits/Losses of Investee	Note
				December 31, 2019	December 31, 2018	Number of Ownership	Percentage of Ownership	Carrying Values
The Company ZeroneWin Investment Co., Ltd.	Zotech Technology Co., Ltd. Chi-Ta International Co., Ltd. ZeroneWin Investment Co., Ltd. Asiaone Holdings Ltd. WingWill International Co., Ltd. PetaCom technology Co.,Ltd.	Taipei City Taipei City Taipei City Republic of Seychelles Taipei City Taipei City	Services of telecommunication apparatus Services of telecommunication apparatus Investment Holding company Services of cloud information software Services of information product agent	$ 35,000 10,000 100,000 10,063 7,000 50,000	$ 35,000 10,000 100,000 - 7,000 50,000	3,500,000 597,960 10,000,000 320,000 700,000 50,000,000	85.37 30.00 100.00 100.00 70.00 100.00	$ 43,671 - 90,729 9,545 ( 3,738 ) 43,495	$ 826 - ( 7,531 ) ( 518 ) ( 7,599 ) ( 2,806 )	$ 705 - ( 7,531 ) ( 518 ) ( 5,319 ) ( 2,806 )	Subsidiary Subsidiary Sub-subsidiary Sub-subsidiary

52 -

§THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS§

ITEMS NO. ／ INDEX MAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES AND EQUITY STATEMENT OF CASH AND CASH Statement 1 EQUIVALENTS STATEMENT OF FINANCIAL ASSETS AT FYTPL Statement 2 － CURRENT STATEMENT OF FINANCIAL ASSETS AT Note 9 － AMORTIZED COST CURRENT STATEMENT OF FINANCIAL ASSETS AT Statement 3 － FVTOCI CURRENT STATEMENT OF NOTES RECEIVABLE Statement 4 STATEMENT OF TRADE RECEIVABLE Statement 5 STATEMENT OF INVENTORIES Statement 6 STATEMENT OF FINANCIAL ASSETS AT FYTPL Statement 7 － NON-CURRENT STATEMENT OF FINANCIAL ASSETS AT Statement 8 － FVTOCI NON-CURRENT STATEMENT OF FINANCIAL ASSETS AT Note 9 － AMORTIZED COST NON-CURRENT STATEMENT OF CHANGES IN INVESTMENTS Statement 9 ACCOUNTED FOR USING THE EQUITY METHOD STATEMENT OF CHANGES IN PROPERTY, Note 13 PLANT AND EQUIPMENT STATEMENT OF CHANGES IN ACCUMULATED Note 13 DEPRECIATION OF PROPERTY, PLANT AND EQUIPMENT STATEMENT OF DEFERRED INCOME TAX Note 21 ASSETS STATEMENT OF TRADE PAYABLES Statement 10 STATEMENT OF OTHER PAYABLES Note 16 STATEMENT OF OTHER CURRENT LIABILITIES Statement 11 MAJOR ACCOUNTING ITEMS IN PROFIT OR LOSS STATEMENT OF OPERATING REVENUE Statement 12 STATEMENT OF OPERATING COST Statement 13 STATEMENT OF OPERATING EXPENSES Statement 14 STATEMENT OF EMPLOYEE BENEFITS, Note 20 DEPRECIATION, DEPLETION AND AMORTIZATION BY FUNCTION

53 -

ZERO ONE TECHNOLOGY CO., LTD.

STATEMENT OF CASH AND CASH EQUIVALENTS FOR THE YEAR ENDED DECEMBER 31, 2019

STATEMENT 1 (In Thousands of New Taiwan Dollars)

Item Demand deposits Foreign currency time deposit cash on hand and revolving funds Checking deposits	Description New Taiwan dollar USD 1,588 thousand`＠`29.98;EUR 6 thousand`＠`33.59 USD 7,140 thousand@ 29.98; yearly interest rates at 2.10% ~2.27%; Expired by 2020.2.10		Amount
			$ 36,276 47,835 214,057 183 1 $ 298,352

54 -

ZERO ONE TECHNOLOGY CO., LTD.

`－` STATEMENT OF FINANCIAL ASSETS AT FYTPL CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 2 Name of financial instruments KGI Emerging Market Bond 1-5 ETF Fund Giga Solar Materials Corp.`－`2 China Airlines`－`6 Tong Ming Enterprise Co., Ltd.`－`1 Gemtek Technology Co., Ltd.`－`5 Sigurd Microelectronics Corporation.`－`3 Quang Viet Enterprise Co.,Ltd.`－`1 Sheh Fung Screws Co., Ltd.`－`1 Interactive Digital Technologies Inc.`－`1 Add`（`Less`）：`Valuation adjustment	Description Fund Beneficiary Certificate Convertible bond Convertible bond Convertible bond Convertible bond Convertible bond Convertible bond Convertible bond Convertible bond	Units 75,000 150`（`Units`）` 30`（`Units`）` 10`（`Units`）` 40`（`Units`）` 30`（`Units`）` 30`（`Units`）` 5`（`Units`）` 10`（`Units`）`	Par value`（`Dollars`）` 10 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000	(In Thousands of New Taiwan Dollars, Except Earnings Per Share) Fair value Total Acquisition Cost Units`（`Dollars`）` Total $ 3,000 $ 3,000 40 $ 3,000 15,000 14,672 97 14,550 3,000 3,006 99.45 2,984 1,000 1,005 98.5 985 4,000 4,013 109.7 4,388 3,000 3,030 113.15 3,394 3,000 3,060 107.85 3,236 500 502 103.85 519 1,000 1,004 112.6 1,126 33,292 $ 34,182 890 $ 34,182	(In Thousands of New Taiwan Dollars, Except Earnings Per Share) Fair value Total Acquisition Cost Units`（`Dollars`）` Total $ 3,000 $ 3,000 40 $ 3,000 15,000 14,672 97 14,550 3,000 3,006 99.45 2,984 1,000 1,005 98.5 985 4,000 4,013 109.7 4,388 3,000 3,030 113.15 3,394 3,000 3,060 107.85 3,236 500 502 103.85 519 1,000 1,004 112.6 1,126 33,292 $ 34,182 890 $ 34,182	(In Thousands of New Taiwan Dollars, Except Earnings Per Share) Fair value Total Acquisition Cost Units`（`Dollars`）` Total $ 3,000 $ 3,000 40 $ 3,000 15,000 14,672 97 14,550 3,000 3,006 99.45 2,984 1,000 1,005 98.5 985 4,000 4,013 109.7 4,388 3,000 3,030 113.15 3,394 3,000 3,060 107.85 3,236 500 502 103.85 519 1,000 1,004 112.6 1,126 33,292 $ 34,182 890 $ 34,182	(In Thousands of New Taiwan Dollars, Except Earnings Per Share) Fair value Total Acquisition Cost Units`（`Dollars`）` Total $ 3,000 $ 3,000 40 $ 3,000 15,000 14,672 97 14,550 3,000 3,006 99.45 2,984 1,000 1,005 98.5 985 4,000 4,013 109.7 4,388 3,000 3,030 113.15 3,394 3,000 3,060 107.85 3,236 500 502 103.85 519 1,000 1,004 112.6 1,126 33,292 $ 34,182 890 $ 34,182
					Units`（`Dollars`）` 40 97 99.45 98.5 109.7 113.15 107.85 103.85 112.6		Total
							$ 3,000 14,550 2,984 985 4,388 3,394 3,236 519 1,126 $ 34,182

55 -

ZERO ONE TECHNOLOGY CO., LTD.

`－` STATEMENT OF FINANCIAL ASSETS AT FVTOCI CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 3

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Name of financial instruments Global Mixed-mode Technology Inc. ASLAN Pharmaceuticals, Ltd. Chunghwa Precision Test Tech. Co., Ltd .	BeginningBalance Shares Book value 50,000 $ 3,230 60,000 1,515 6,000 3,120 $ 7,865	BeginningBalance Shares Book value 50,000 $ 3,230 60,000 1,515 6,000 3,120 $ 7,865	Addition Shares Amount - $ - - - - - $ -	Addition Shares Amount - $ - - - - - $ -	Decrease Shares Amount 50,000 $ 4,815 60,000 1,318 6,000 4,807 $ 10,940	Decrease Shares Amount 50,000 $ 4,815 60,000 1,318 6,000 4,807 $ 10,940	Valuation for the current year $ 1,585 ( 197 ) 1,687 $ 3,075	Balance,December 31,2019 Shares Book value - $ - - - - - $ -	Balance,December 31,2019 Shares Book value - $ - - - - - $ -	Remark
	Shares 50,000 60,000 6,000		Shares - - -		Shares 50,000 60,000 6,000			Shares - - -

56 -

ZERO ONE TECHNOLOGY CO., LTD.

STATEMENT OF NOTES RECEIVABLE

FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 4 (In Thousands of New Taiwan Dollars)

The firm name Non-related parties Genesis technology inc. Stark inforcom inc. Apex fong yi technology co., ltd. Others (Note) Less: Allowance for doubtful accounts	Description Payment Payment Payment Payment		Amount
			$ 179,482 16,190 28,637 52,586 276,895 - $ 276,895

Note ： The amount of individual company included in others does not exceed 5% of the account balance.
57 -

ZERO ONE TECHNOLOGY CO., LTD.

STATEMENT OF TRADE RECEIVABLE

FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 5 (In Thousands of New Taiwan Dollars)

The Company’s name SYSTEX SOFTWARE & SERVICE CORPORATION Kinmax Technology Inc. SYSTEX CORPORATION STARK TECHNOLOGY INC. HWACOM SYSTEMS INC. Others (Note) Less: Allowance for doubtful accounts Total	Description Payment for goods Payment for goods Payment for goods Payment for goods Payment for goods Payment for goods	Amount	Amount
			$ 135,788 124,615 115,572 108,773 100,017 1,172,299 1,757,064 14,694 $ 1,742,370

Note ： The amount of individual company included in others does not exceed 5% of the account balance.

58 -

ZERO ONE TECHNOLOGY CO., LTD.

STATEMENT OF INVENTORIES

FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 6 Items Commodities	(In	Thousands of New Taiwan Dollars) Book value Market value `（`Note`）` $ 1,306,416 $ 1,312,321

Note ： Market value shall be net realizable value.

59 -

ZERO ONE TECHNOLOGY CO., LTD.

`－` STATEMENT OF FINANCIAL ASSETS AT FYTPL NON-CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 7

(In Thousands of New Taiwan Dollars, Except Specified)

Name Cathay Financial Holding Co., Ltd. Preferred Stock A Union Bank of Taiwan Preferred Stock A KGI Kaefer Fund KGI Taiwan Multi-Asset Income Fund	BeginningBalance Shares Book value 166,000 $ 10,574 80,000 4,272 - - - - $ 14,846	BeginningBalance Shares Book value 166,000 $ 10,574 80,000 4,272 - - - - $ 14,846	Addition Shares Amount - $ - - - 170,437 3,000 2,198,020 22,100 $ 25,100	Addition Shares Amount - $ - - - 170,437 3,000 2,198,020 22,100 $ 25,100	Decrease Shares Amount - $ - - - - - 1,000,000 10,100 $ 10,100	Decrease Shares Amount - $ - - - - - 1,000,000 10,100 $ 10,100	Valuation for the current year $ 83 112 79 160 $ 434	Balance,December 31,2019 Shares Book value 166,000 $ 10,657 80,000 4,384 170,437 3,079 1,198,020 12,160 $ 30,280	Balance,December 31,2019 Shares Book value 166,000 $ 10,657 80,000 4,384 170,437 3,079 1,198,020 12,160 $ 30,280	Remark
	Shares 166,000 80,000 - -		Shares - - 170,437 2,198,020		Shares - - - 1,000,000			Shares 166,000 80,000 170,437 1,198,020

60 -

ZERO ONE TECHNOLOGY CO., LTD.

`－` STATEMENT OF FINANCIAL ASSETS AT FVTOCI NON-CURRENT

FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 8

(In Thousands of New Taiwan Dollars)

Name Kaway Information Corp. China Electric Mfg. Corp. ASIX Electronics Corp. Promaster Technology Corp. Unex Technology Corp. Cathay Financial Holding Co., Ltd. Preferred Stock A Union Bank of Taiwan Preferred Stock A Fubon Financial Holding Co., Ltd. Preferred Shares B Taishin Financial Holding Co., Ltd. Preferred Stock E CTBC Financial Holding Co., Ltd. Preferred Shares B Cathay Financial Holding Co., Ltd. Preferred Stock B Kwong Lung Enterprise Co., Ltd. Preferred Stock A WPG Holdings Limited Preferred Stock A United Orthopedic Corporation Preferred Stock A Miiicasa Holdings (Cayman) Inc. Duofu Co., Ltd. Jotangi Technology Co., Ltd. Ijoing, Inc.	BeginningBalance Shares Book value 490,000 $ 13,696 3,320,000 30,179 260,074 7,828 1,075,601 8,841 175,000 4,265 34,000 2,166 50,000 2,670 400,000 24,800 240,000 12,768 90,000 5,688 230,000 14,237 200,000 10,000 - - - - 2,500,000 - 10,000 - 796,250 - 500,000 - $ 137,138	BeginningBalance Shares Book value 490,000 $ 13,696 3,320,000 30,179 260,074 7,828 1,075,601 8,841 175,000 4,265 34,000 2,166 50,000 2,670 400,000 24,800 240,000 12,768 90,000 5,688 230,000 14,237 200,000 10,000 - - - - 2,500,000 - 10,000 - 796,250 - 500,000 - $ 137,138	Addition Shares Amount - $ - - - - - 35,962 - - - 20,000 1,285 20,000 1,101 - - - - - - - - - - 700,000 35,000 200,000 10,400 - - - - - - - - $ 47,786	Addition Shares Amount - $ - - - - - 35,962 - - - 20,000 1,285 20,000 1,101 - - - - - - - - - - 700,000 35,000 200,000 10,400 - - - - - - - - $ 47,786	Decrease Shares Amount - $ - 332,000 3,320 170,000 6,863 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $ 10,183	Decrease Shares Amount - $ - 332,000 3,320 170,000 6,863 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $ 10,183	Valuation for the currentyear $ 3,454 6,308 2,453 1,597 ( 522 ) 16 65 920 528 270 483 760 1,190 160 - - - - $ 17,682	Balance,December 31,2019 Shares Book value 490,000 $ 17,150 2,988,000 33,167 90,074 3,418 1,111,563 10,438 175,000 3,743 54,000 3,467 70,000 3,836 400,000 25,720 240,000 13,296 90,000 5,958 230,000 14,720 200,000 10,760 700,000 36,190 200,000 10,560 2,500,000 - 10,000 - 796,250 - 500,000 - $ 192,423	Balance,December 31,2019 Shares Book value 490,000 $ 17,150 2,988,000 33,167 90,074 3,418 1,111,563 10,438 175,000 3,743 54,000 3,467 70,000 3,836 400,000 25,720 240,000 13,296 90,000 5,958 230,000 14,720 200,000 10,760 700,000 36,190 200,000 10,560 2,500,000 - 10,000 - 796,250 - 500,000 - $ 192,423	Remark
	Shares 490,000 3,320,000 260,074 1,075,601 175,000 34,000 50,000 400,000 240,000 90,000 230,000 200,000 - - 2,500,000 10,000 796,250 500,000		Shares - - - 35,962 - 20,000 20,000 - - - - - 700,000 200,000 - - - -		Shares			Shares 490,000 2,988,000 90,074 1,111,563 175,000 54,000 70,000 400,000 240,000 90,000 230,000 200,000 700,000 200,000 2,500,000 10,000 796,250 500,000
					- 332,000 170,000 - - - - - - - - - - - - - - -

61 -

ZERO ONE TECHNOLOGY CO., LTD.

STATEMENT OF CHANGES IN INVESTMENTSACCOUNTED FOR USING THE EQUITY METHOD

FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 9

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Name ZeroneWin Investment Co., Ltd. Zotech Technology Co., Ltd. Asiaone Holdings Ltd. Chi-Ta International Co., Ltd.	BeginningBalance Shares Amount 10,000,000 $ 91,703 3,500,000 44,426 - - 597,960 - $ 136,129	BeginningBalance Shares Amount 10,000,000 $ 91,703 3,500,000 44,426 - - 597,960 - $ 136,129	Addition Shares Amount - $ - - - 320,000 10,063 - - $ 10,063	Addition Shares Amount - $ - - - 320,000 10,063 - - $ 10,063	Decrease Shares Amount - $ - - 1,750 - - - - $ 1,750	Decrease Shares Amount - $ - - 1,750 - - - - $ 1,750	Unrealized gains (losses) on financial instruments $ 6,557 290 - - $ 6,847	Investment gain(loss) ( $ 7,531 ) 705 ( 518 ) - ($ 7,344)	Balance,December 31,	Balance,December 31,	Balance,December 31,	2019 Amount $ 90,729 43,671 9,545 - $ 143,945	Net value of equity $ 90,729 43,671 9,545 -	Collateral/Pledge
	Shares 10,000,000 3,500,000 - 597,960		Shares - - 320,000 -		Shares - - - -				Shares 10,000,000 3,500,000 320,000 597,960	Percentage of ownership `％` 100 85.37 100 30
														None None None None

62 -

ZERO ONE TECHNOLOGY CO., LTD.

STATEMENT OF TRADE PAYABLES

FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 10 (In Thousands of New Taiwan Dollars)

The Company’s name CISCO SYSTEMS INTERNATIONAL B.V. Trend Micro Inc. Net App, Inc. Others`（`Note`）`		Amount
		$ 887,231 195,447 137,423 804,309 $ 2,024,410

Note ： The amount of individual company included in others does not exceed 5% of the account balance.
63 -

ZERO ONE TECHNOLOGY CO., LTD.

STATEMENT OF OTHER CURRENT LIABILITIES FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 11	(In Thousands of New Taiwan Dollars)
Items	Amount
Receipts under custody	$ 109,809
Contract liability—current	22,982
Temporary receipts	8,337
	$ 141,128

64 -

ZERO ONE TECHNOLOGY CO., LTD.

STATEMENT OF OPERATING REVENUE

FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 12 (In Thousands of New Taiwan Dollars)

Items Sales revenue Other operating revenues Less: sales returns Less:sales discounts	Description Selling the software suite		Amount
			$ 8,799,382 56,787 8,856,169 17,044 12,466 $ 8,826,659

65 -

ZERO ONE TECHNOLOGY CO., LTD. STATEMENT OF OPERATING COST

FOR THE YEAR ENDED DECEMBER 31, 2019

(In Thousands of New Taiwan Dollars)


Statement 13	(In Thousands of New Ta	iwan Dollars)
Items		Amount
Costs of goods sold
Initial inventory		$ 1,047,792
Add`：`Purchases		8,377,277
Ending inventory	(	1,449,719 )
Others	(	47,000)
Total costs of sales and purchases		7,928,350
Gain from price recovery of inventory		29,563
Losses on disposal of scrap inventories		2,803
		$ 7,960,716

Note ： The above statement indicates that the amount of all items regarding inventories is recognized by original costs of inventories, with no deduction of allowance for inventory valuation losses.

66 -

ZERO ONE TECHNOLOGY CO., LTD.

STATEMENT OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2019

Statement 14

(In Thousands of New Taiwan Dollars)

Items Payroll Expenses Entertainment expense Insurance expense Reversal for expected credit losses Depreciation expense Others`（`Note`）`	Selling and marketing expenses $ 202,256 34,651 25,638 - 6,684 67,315 $ 336,544	General and administrative expenses $ 81,974 1,333 6,169 ( 5,901 ) 11,374 25,299 $ 120,248	Total
			$ 284,230 35,984 31,807 ( 5,901 ) 18,058 92,614 $ 456,792

Note ： The amount of each item in others does not exceed 5% of the account balance.

67 -

AI assistant

ZERO ONE — Audit Report / Information 2019

52262_rns_2019-11-22_67c66bca-ad98-4c53-8d73-0b412f585dc3.pdf

§TABLE OF CONTENTS§

INDEPENDENT AUDITORS' REPORT

Opinion

Basis for Opinion

Key Audit Matters

Valuation of allowance for uncollectible accounts

Key Audit Matters

The following audit procedures

Allowance for inventory valuation loss

Key Audit Matters

The following audit procedures

Responsibilities of Management and Those Charged with Governance for the Parent company only Financial Statements

Auditors' Responsibilities for the Audit of the Parent company only Financial Statements

Deloitte & Touche

Taipei, Taiwan Republic of China

Notice to Readers

ZERO ONE TECHNOLOGY CO., LTD.

PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2019 AND 2018 (In Thousands of New Taiwan Dollars)

ZERO ONE TECHNOLOGY CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

ZERO ONE TECHNOLOGY CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

ZERO ONE TECHNOLOGY CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

ZERO ONE TECHNOLOGY CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (In Thousands of New Taiwan Dollars)

ZERO ONE TECHNOLOGY CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (In Thousands of New Taiwan Dollars)

1. GENERAL

2. THE DATE AND PROCEDURES OF AUTHORIZATION OF FINANCIAL STATEMENTS

3. ;APPLICATION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS

Definition of a lease

The Company as lessee

The Company as lessor

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(7)Investment in associates

Revenue from sale of goods

6. CASH AND CASH EQUIVALENTS

8. Financial assets measured at FVTOCI Investments in equity instruments

9. FINANCIAL ASSETS AT AMORTIZED COST

10. NOTES AND TRADE RECEIVABLE

11. INVENTORIES

13. PROPERTY, PLANT AND EQUIPMENT

14. LEASE ARRANGEMENTS

(1) Right -of - use assets – 2019

17. ;BOND PAYABLE

18. RETIREMENT BENEFIT PLANS

(1)Defined contribution plans

(2)Defined benefit plans

20. NET INCOME

(6)Employees’, directors, and supervisors’ compensation

Estimate Rate

21. INCOME TAXES

(1)Income tax recognized in profit or loss

2019

22. EARNINGS PER SHARE

;Net Profit for the Period

23. ;SHARE -BASED PAYMENT ARRANGEMENTS

(1)Employee Share Option Plan

24. CAPITAL RISK MANAGEMENT

25. FINANCIAL INSTRUMENTS

Sensitivity analysis

Sensitivity analysis

(c)Other price risk

Sensitivity analysis

B.;Credit risk

Liquidity & interest rate risk table

;December 31, 2019

27. PLEDGED ASSETS

29. ; FOREIGN - CURRENCY- DEMONINATED ASSETS AND LIABILITIES THAT HAVE SIGNIFICANT INFLUENCE

December 31, 2019

30. SEPARATELY DISCLOSED ITEMS

ZERO ONE TECHNOLOGY CO., LTD. FINANCING PROVIDED TO OTHERS FOR THE YEARS ENDED DECEMBER 31, 2019

ZERO ONE TECHNOLOGY CO., LTD. MARKETABLE SECURITIES HELD FOR THE YEAR ENDED DECEMBER 31, 2019

Table 2

（ Concluded ）

ZERO ONE TECHNOLOGY CO., LTD.

ZERO ONE Audit Report / Information 2019

`（` Concluded `）`

`－` STATEMENT OF FINANCIAL ASSETS AT FYTPL CURRENT

`－` STATEMENT OF FINANCIAL ASSETS AT FVTOCI CURRENT

`－` STATEMENT OF FINANCIAL ASSETS AT FYTPL NON-CURRENT

`－` STATEMENT OF FINANCIAL ASSETS AT FVTOCI NON-CURRENT