SinoPac Financial Holdings Company Limited and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2021 and 2020 and Independent Auditors’ Review Report

INDEPENDENT AUDITORS’ REVIEW REPORT

The Board of Directors and Shareholders SinoPac Financial Holdings Company Limited

Introduction

We have reviewed the accompanying consolidated balance sheets of SinoPac Financial Holdings Company Limited and its subsidiaries (collectively referred to as the Group) as of March 31, 2021 and 2020 and the related consolidated statements of comprehensive income, changes in equity and cash flows for the three months ended March 31, 2021 and 2020 and related notes, including a summary of significant accounting policies (collectively referred to as the consolidated financial statements). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Financial Holding Companies, Regulations Governing the Preparation of Financial Reports by Public Banks, Regulations Governing the Preparation of Financial Reports by Securities Firms, Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants, Regulations Governing the Preparation of Financial Reports by Securities Issuers, the guidelines issued by the authority, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

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

Conclusion

Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the financial position of the Group as at March 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the three months ended March 31, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Financial Holding Companies, Regulations Governing the Preparation of Financial Reports by Public Banks, Regulations Governing the Preparation of Financial Reports by Securities Firms, Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants, Regulations Governing the Preparation of Financial Reports by Securities Issuers, the guidelines issued by the authority, and International Accounting Standard 34 “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

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The engagement partners on the reviews resulting in this independent auditors’ review report are Mei-Hui Wu and Cheng-Hung Kuo.

Deloitte & Touche Taipei, Taiwan Republic of China

May 21, 2021

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated 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 review such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ review report and the accompanying consolidated 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’ review report and consolidated financial statements shall prevail.

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SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars)

March 31, 2021 (Reviewed) December 31, 2020 (Audited) March 31, 2020 (Reviewed) ASSETS Amount % Amount % Amount %

CASH AND CASH EQUIVALENTS, NET (Notes 6 and 45) $ 24,585,392 1 $ 30,813,465 1 $ 23,602,833 1

DUE FROM THE CENTRAL BANK AND CALL LOANS TO BANKS, NET (Notes 7, 45 and 46) 151,975,304 7 139,884,559 7 129,975,368 7

FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS (Notes 8, 14 and 45) 80,902,724 4 88,823,228 4 96,648,754 5

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME (Notes 9 and 45) 363,301,606 16 350,213,800 16 269,960,756 14

INVESTMENTS IN DEBT INSTRUMENTS AT AMORTIZED COST (Notes 10 and 46) 152,426,235 7 162,368,434 8 143,132,047 8

SECURITIES PURCHASED UNDER RESELL AGREEMENTS (Notes 11 and 45) 69,478,794 3 55,080,929 3 27,236,739 1

RECEIVABLES, NET (Notes 12 and 45) 95,247,863 4 90,627,076 4 75,219,893 4

CURRENT INCOME TAX ASSETS (Notes 4, 33 and 45) 406,537 - 366,525 - 296,875 -

DISCOUNTS AND LOANS, NET (Notes 5, 13, 45 and 46) 1,192,192,529 54 1,144,778,144 53 1,072,433,453 56

INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD (Note 15) 615,238 - 590,035 - 506,265 -

OTHER FINANCIAL ASSETS, NET (Notes 16, 45 and 46) 41,455,417 2 36,194,326 2 34,305,437 2

INVESTMENT PROPERTY, NET (Notes 17, 45 and 46) 2,446,741 - 2,451,753 - 2,489,019 -

PROPERTY AND EQUIPMENT, NET (Notes 18, 45 and 46) 13,105,099 1 13,218,774 1 12,904,564 1

RIGHT-OF-USE ASSETS, NET (Notes 19, 45 and 46) 3,574,990 - 3,426,080 - 3,209,945 -

INTANGIBLE ASSETS, NET (Notes 20 and 45) 2,228,447 - 2,187,368 - 2,195,010 -

DEFERRED INCOME TAX ASSETS (Notes 4 and 33) 2,152,304 - 2,279,267 - 2,186,463 -

OTHER ASSETS, NET (Notes 21 and 45) 17,567,671 1 20,044,802 1 19,206,213 1

TOTAL $ 2,213,662,891 100 $ 2,143,348,565 100 $ 1,915,509,634 100

LIABILITIES AND EQUITY

DEPOSITS FROM THE CENTRAL BANK AND BANKS (Notes 22 and 45) $ 89,402,568 4 $ 75,514,370 4 $ 59,910,408 3

DUE TO THE CENTRAL BANK AND BANKS 118,350 - 80,380 - - -

FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS (Notes 8 and 45) 21,774,621 1 26,493,074 1 26,065,040 1

SECURITIES SOLD UNDER REPURCHASE AGREEMENTS (Notes 8, 9, 10, 11, 23 and 45) 39,251,226 2 25,635,341 1 31,790,464 2

COMMERCIAL PAPERS ISSUED, NET (Notes 24, 45 and 46) 37,073,914 2 29,009,757 1 28,278,401 2

PAYABLES (Notes 25, 30, 41 and 45) 54,339,281 3 50,459,681 2 45,683,801 2

CURRENT INCOME TAX LIABILITIES (Notes 4, 33 and 45) 2,020,628 - 1,476,006 - 1,206,550 -

DEPOSITS AND REMITTANCES (Notes 26 and 45) 1,689,229,975 76 1,653,470,238 77 1,455,456,076 76

BONDS PAYABLE (Notes 27 and 45) 52,508,091 2 52,510,597 3 46,133,626 3

SHORT-TERM BORROWINGS (Notes 28, 45 and 46) 9,863,936 1 11,406,239 1 6,153,275 -

LONG-TERM BORROWINGS (Notes 28, 45 and 46) 4,230,401 - 2,329,522 - 3,149,046 -

PREFERRED STOCK LIABILITIES (Note 34) 18,437 - 18,437 - 18,437 -

PROVISIONS (Notes 29 and 30) 3,777,832 - 3,820,405 - 3,517,973 -

OTHER FINANCIAL LIABILITIES (Notes 31 and 45) 38,438,109 2 38,318,029 2 52,202,087 3

LEASE LIABILITIES (Notes 19 and 45) 2,971,982 - 2,824,915 - 2,570,456 -

DEFERRED INCOME TAX LIABILITIES (Notes 4 and 33) 1,488,799 - 1,444,864 - 1,602,051 -

OTHER LIABILITIES (Notes 32 and 45) 8,370,354 - 12,666,978 1 5,797,580 -

Total liabilities 2,054,878,504 93 1,987,478,833 93 1,769,535,271 92

EQUITY Equity attributable to owners of parent Capital stock Common stock 112,710,541 5 112,710,541 5 112,710,541 6 Capital surplus 2,228,764 - 2,228,764 - 2,228,764 - Retained earnings Legal reserve 19,171,226 1 19,171,226 1 17,951,839 1 Special reserve 483,818 - 483,818 - 849,362 - Unappropriated earnings 21,832,196 1 16,909,609 1 15,357,472 1 Total retained earnings 41,487,240 2 36,564,653 2 34,158,673 2 Other equity 2,357,842 - 4,365,774 - (3,126,993) - Total equity attributable to owners of parent 158,784,387 7 155,869,732 7 145,970,985 8 Non-controlling interests - - - - 3,378 -

Total equity 158,784,387 7 155,869,732 7 145,974,363 8

TOTAL $ 2,213,662,891 100 $ 2,143,348,565 100 $ 1,915,509,634 100

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

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SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

For the Three Months Ended March 31 2021 2020 Amount % Amount %

INTEREST INCOME $ 7,552,322 64 $ 8,526,314 97

INTEREST EXPENSES (2,323,555) (20) (4,196,920) (48)

NET INTEREST REVENUE (Notes 35 and 45) 5,228,767 44 4,329,394 49

NET REVENUES OTHER THAN INTEREST Service fee and commissions income, net (Notes 36 and 45) 4,900,383 42 3,928,130 45 Gains(loss) on financial assets and liabilities at fair value through profit or loss, net (Notes 37 and 45) 722,316 6 (128,117) (1) Realized gains on financial assets at fair value through other comprehensive income (Notes 38 and 45) 314,504 3 161,736 2 Loss arising from derecognition of financial assets measured at amortized cost (670) - - - Foreign exchange gains 408,970 4 328,640 4 Impairment loss on assets (Notes 16 and 39) (13,030) - (53,548) (1) Share of profit of associates for using equity method (Note 15) 29,793 - 3,953 - Net other revenue other than interest income (Notes 40 and 45) 158,183 1 212,502 2

Net revenues other than interest 6,520,449 56 4,453,296 51

NET REVENUE 11,749,216 100 8,782,690 100

BAD DEBTS EXPENSE, COMMITMENT AND GUARANTEE LIABILITY PROVISION (Notes 5, 6, 7, 12, 13, 16 and 29) (376,742) (3) (615,796) (7)

OPERATING EXPENSES Employee benefits expenses (Notes 30, 41 and 45) (4,212,440) (36) (3,434,532) (39) Depreciation and amortization expense (Notes 19, 42 and 45) (535,960) (4) (491,312) (6) Other general and administrative expenses (Notes 43 and 45) (1,390,339) (12) (1,416,256) (16)

Total operating expenses (6,138,739) (52) (5,342,100) (61) (Continued)

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SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

For the Three Months Ended March 31 2021 2020 Amount % Amount %

PROFIT FROM CONTINUING OPERATIONS BEFORE TAX $ 5,233,735 45 $ 2,824,794 32

INCOME TAX EXPENSE (Notes 4 and 33) (822,732) (7) (470,440) (5)

NET INCOME 4,411,003 38 2,354,354 27

OTHER COMPREHENSIVE INCOME Items that will not be reclassified to profit or loss Change in fair value of financial liability attributable to change in credit risk of liability (Note 34) 3,051 - (11,321) - Revaluation gains (losses) on investments in equity instruments measured at fair value through other comprehensive income (Note 34) 1,383,171 12 (2,801,273) (32) Income tax related to items that will not be reclassified to profit or loss (Notes 4, 33 and 34) (2,551) - 6,914 - Items that will not be reclassified to profit or loss 1,383,671 12 (2,805,680) (32) Items that will be reclassified to profit or loss Exchange differences on translation of foreign operations (Note 34) (93,139) (1) (106,636) (1) Losses from investments in debt instruments measured at fair value through other comprehensive income (Note 34) (2,822,472) (24) (1,783,228) (20) Share of other comprehensive loss of associates accounted for using equity method (Notes 15 and 34) (589) - (1,936) - Income tax related to components of other comprehensive income that will be reclassified to profit or loss (Notes 4, 33 and 34) 36,181 - (48,268) (1) Items that will be reclassified to profit or loss (2,880,019) (25) (1,940,068) (22)

Other comprehensive income (1,496,348) (13) (4,745,748) (54)

TOTAL COMPREHENSIVE INCOME $ 2,914,655 25 $ (2,391,394) (27) (Continued)

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SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

For the Three Months Ended March 31 2021 2020 Amount % Amount %

NET INCOME ATTRIBUTABLE TO: Owners of parent $ 4,411,003 38 $ 2,354,354 27 Non-controlling interests - - - -

$ 4,411,003 38 $ 2,354,354 27

COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of parent $ 2,914,655 25 $ (2,391,394) (27) Non-controlling interests - - - -

$ 2,914,655 25 $ (2,391,394) (27)

EARNINGS PER SHARE (Note 44) Basic $ 0.39 $ 0.21 Diluted $ 0.39 $ 0.21

The accompanying notes are an integral part of the consolidated financial statements. (Concluded)

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SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

Total Equity Attributable to Owners of Parent Other Equity (Notes 9 and 34) Unrealized Gains Change in Fair (Losses) on Value of Exchange Financial Assets Financial Differences on at Fair Value Liability Capital Stock Retained Earnings (Notes 9 and 34) Translation through Other Attributable to (Note 34) Capital Surplus Unappropriated of Foreign Comprehensive Change in Credit Total Equity of Non-controlling Common Stock (Note 34) Legal Reserve Special Reserve Earnings Total Operations Income Risk of Liability Total the Parent Interests Total Equity

BALANCE AT JANUARY 1, 2020 $ 112,710,541 $ 2,228,771 $ 17,951,839 $ 849,362 $ 13,468,498 $ 32,269,699 $ (1,339,209 ) $ 2,560,626 $ (68,042 ) $ 1,153,375 $ 148,362,386 $ 3,378 $ 148,365,764

Other changes in capital surplus Changes in capital surplus from investments in associates and joint ventures accounted for using the equity method - (7 ) ------(7 ) - (7 )

Net income for the three months ended March 31, 2020 - - - - 2,354,354 2,354,354 - - - - 2,354,354 - 2,354,354

Other comprehensive income for the three months ended March 31, 2020, net of income tax ------(88,087 ) (4,646,340 ) (11,321 ) (4,745,748 ) (4,745,748 ) - (4,745,748 )

Total comprehensive income for the three months ended March 31, 2020 - - - - 2,354,354 2,354,354 (88,087 ) (4,646,340 ) (11,321 ) (4,745,748 ) (2,391,394 ) - (2,391,394 )

Disposal of investments in equity instruments designated at fair value through other comprehensive income - - - - (465,380 ) (465,380 ) - 465,380 - 465,380 - - -

BALANCE AT MARCH 31, 2020 $ 112,710,541 $ 2,228,764 $ 17,951,839 $ 849,362 $ 15,357,472 $ 34,158,673 $ (1,427,296 ) $ (1,620,334 ) $ (79,363 ) $ (3,126,993 ) $ 145,970,985 $ 3,378 $ 145,974,363

BALANCE AT JANUARY 1, 2021 $ 112,710,541 $ 2,228,764 $ 19,171,226 $ 483,818 $ 16,909,609 $ 36,564,653 $ (1,593,696 ) $ 6,041,813 $ (82,343 ) $ 4,365,774 $ 155,869,732 $ - $ 155,869,732

Net income for the three months ended March 31, 2021 - - - - 4,411,003 4,411,003 - - - - 4,411,003 - 4,411,003

Other comprehensive income for the three months ended March 31, 2021, net of income tax ------(75,058 ) (1,424,341 ) 3,051 (1,496,348 ) (1,496,348 ) - (1,496,348 )

Total comprehensive income for the three months ended March 31, 2021 - - - - 4,411,003 4,411,003 (75,058 ) (1,424,341 ) 3,051 (1,496,348 ) 2,914,655 - 2,914,655

Disposal of investments in equity instruments designated at fair value through other comprehensive income - - - - 511,584 511,584 - (511,584 ) - (511,584 ) - - -

BALANCE AT MARCH 31, 2021 $ 112,710,541 $ 2,228,764 $ 19,171,226 $ 483,818 $ 21,832,196 $ 41,487,240 $ (1,668,754 ) $ 4,105,888 $ (79,292 ) $ 2,357,842 $ 158,784,387 $ - $ 158,784,387

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

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SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

For the Three Months Ended March 31 2021 2020

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax $ 5,233,735 $ 2,824,794 Adjustments to reconcile profit Depreciation expense 448,615 409,813 Amortization expense 87,345 81,499 Provision for bad debt expense 534,436 640,649 Interest expenses 2,323,555 4,196,920 Loss arising from derecognition of financial assets measured at amortized cost 670 - Interest income (7,552,322) (8,526,314) Dividend income (48,412) (58,572) Net change in provisions for guarantee liabilities 33,671 22,096 Net change in other provisions (9,399) 93,351 Share of profit of associates for using equity method (29,793) (3,953) (Gains) losses on disposal and retirement of property and equipment (248) 8,972 Impairment loss on financial assets 13,030 53,548 Net losses (gains) on changing in leasing contracts 116 (149) Changes in operating assets and liabilities Decrease (increase) in due from the Central Bank and call loans to banks 1,200,735 (1,690,127) Decrease (increase) in financial assets at fair value through profit or loss 7,920,504 (11,943,545) Increase in financial assets at fair value through other comprehensive income (14,530,890) (20,762,404) Decrease (increase) in investments in debt instruments at amortized cost 9,947,275 (5,191,441) (Increase) decrease in securities purchased under resell agreements (43,529) 322,507 (Increase) decrease in receivables (4,688,664) 1,858,636 Increase in discounts and loans (47,983,204) (69,987,679) Increase in other financial assets (5,265,024) (311,808) Decrease (increase) in other assets 2,477,540 (2,027,473) Increase in deposits from the Central Bank and banks 13,888,198 6,091,906 Decrease in financial liabilities at fair value through profit or loss (4,715,402) (167,037) Increase (decrease) in securities sold under repurchase agreements 13,615,885 (7,049,233) Increase in payables 4,335,488 6,044,414 Increase in deposits and remittances 35,759,737 70,411,091 Decrease in provisions for employee benefits (68,686) (41,862) Increase in other financial liabilities 120,080 1,283,751 Decrease in other liabilities (4,296,624) (413,875) Net cash generated from (used in) operations 8,708,418 (33,831,525) Interest received 7,420,388 8,682,079 (Continued)

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SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

For the Three Months Ended March 31 2021 2020

Dividend received $ 9,996 $ 16,902 Interest paid (2,505,935) (4,311,869) Income tax paid (114,002) (324,183)

Net cash generated from (used in) operating activities 13,518,865 (29,768,596)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of property and equipment (211,969) (352,557) Proceeds from disposal of property and equipment 5,882 3,042 Acquisition of intangible assets (27,943) (39,211) Acquisition of right-of-use-assets (146) (9) Acquisition of investment properties (79) (176)

Net cash used in investing activities (234,255) (388,911)

CASH FLOWS FROM FINANCING ACTIVITIES (Decrease) increase in short-term borrowings (1,562,786) 278,272 Increase in due to the Central Bank and banks 37,970 - Increase (decrease) in commercial papers issued 8,064,157 (2,369,341) Corporate bonds issued - 7,000,000 Bank debentures issued - 5,000,000 Repayment of bank debentures payable - (1,880,000) Proceeds from long-term borrowings 5,032,687 6,131,412 Repayments of long-term borrowings (3,120,210) (6,076,290) Repayments of lease liabilities (241,128) (230,147)

Net cash generated from financing activities 8,210,690 7,853,906

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (82,850) (92,125)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 21,412,450 (22,395,726)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 166,636,587 157,999,931

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD $ 188,049,037 $ 135,604,205 (Continued)

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SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

Reconciliation of the amounts in the consolidated statements of cash flows with the equivalent items reported in the consolidated balance sheets as of March 31, 2021 and 2020:

March 31 2021 2020

Cash and cash equivalents in consolidated balance sheets $ 24,585,392 $ 23,602,833 Due from the Central Bank and call loans to banks reclassified as cash and cash equivalents under the definition of IAS 7 94,052,322 84,764,633 Securities purchased under resell agreements reclassified as cash and cash equivalents under the definition of IAS 7 69,411,323 27,236,739 Cash and cash equivalents at the end of the period $ 188,049,037 $ 135,604,205

The accompanying notes are an integral part of the consolidated financial statements. (Concluded)

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SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

1. ORGANIZATION AND OPERATIONS

May 9, 2002 Following its incorporation, SinoPac Financial Holdings Co., Ltd. (the Company or SPH) issued shares to swap with the shares of Bank SinoPac (BSP), National Securities Corporation (NSC), and SinoPac Securities Corporation (SPS), resulting in all three companies becoming wholly owned subsidiaries of SPH.

December 26, 2005 The International Bank of Taipei became a wholly owned subsidiary of SPH through a share swap made in accordance with the Financial Holding Company Act. The share swap ratio was 1.3646 (with 1 representing the SPH’s share). The trading of IBT’s shares on the Taiwan Stock Exchange then ceased.

June 2006 SPH convened a shareholders’ meeting to reach the decision of changing SPH’s Chinese name, and completed the registration on July 2006.

SPH invests and manages financial institutions.

The consolidated financial statements of the Company and its subsidiaries (collectively referred to as the Group) are presented in the New Taiwan dollar, the Company’s functional currency.

The information on consolidated entities is shown in Note 4.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were reported to the Company’s board of directors on May 21, 2021.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

 The International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations of IFRS (IFRIC), and Interpretations of IAS (SIC) (collectively referred to as IFRSs) in issue but not yet endorsed and issued into effect by the Financial Supervisory Commission (FSC).

Effective Date New IFRSs Announced by IASB (Note 1)

“Annual Improvements to IFRS Standards 2018-2020” January 1, 2022 (Note 2) Amendments to IFRS 3 “Reference to the Conceptual Framework” January 1, 2022 (Note 3) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets To be determined by IASB between An Investor and Its Associate or Joint Venture” Amendments to IAS 16 “Property, Plant and Equipment - Proceeds January 1, 2022 (Note 4) before Intended Use” (Continued)

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Effective Date New IFRSs Announced by IASB (Note 1)

Amendments to IAS 37 “Onerous Contracts - Cost of Fulfilling a January 1, 2022 (Note 5) Contract” IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendments to IAS 1 “Classification of Liabilities as Current or January 1, 2023 Non-current” Amendments to IAS 1 “Disclosure of Accounting Policies” January 1, 2023 (Note 6) Amendments to IAS 8 “Definition of Accounting Estimates” January 1, 2023 (Note 7) Amendments to IAS 12 “Deferred Tax related to Assets and January 1, 2023 (Note 8) Liabilities arising from a Single Transaction” (Concluded)

Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.

Note 2: The amendments to IFRS 9 will be applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” will be applied prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” will be applied retrospectively for annual reporting periods beginning on or after January 1, 2022.

Note 3: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.

Note 4: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.

Note 5: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.

Note 6: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.

Note 7: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.

Note 8: Except that deferred taxes will be recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments will be applied prospectively to transactions that occur on or after January 1, 2022.

The Group assessed that the abovementioned amendments are not expected to have material impact on the Group’s accounting policies. As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will have on the Group’s financial position and financial performance, and will disclose the relevant impact when the assessment is completed.

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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Statement of Compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Financial Holding Companies, Regulations Governing the Preparation of Financial Reports by Public Banks, Regulations Governing the Preparation of Financial Reports by Securities Firms, Regulations Governing the Preparation of Financial Reports by Futures Commission Merchants, Regulations Governing the Preparation of Financial Reports by Securities Issuers, the guidelines issued by the competent authority, and International Accounting Standard 34 “Interim Financial Reporting” as endorsed and issued into effect by the FSC. Disclosure information included in the consolidated financial statements is less than the disclosure information required in a complete set of annual financial statements.

Basis of Preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair value, payable for cash-settled share-based payment transaction and net defined benefit liability which is stated at the present value of defined benefit obligation less fair value of plan assets. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

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

a. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

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); and

c. Level 3 inputs are unobservable inputs for the asset or liability.

Classification of Current and Non-current Assets and Liabilities

Among the entities of consolidated financial statements, the banking industry accounts for a significant percentage. Since the operating cycle in the finance industry cannot be reasonably identified, the accounts included in the Group’s consolidated financial statements were not classified as current or noncurrent. Nevertheless, accounts were properly categorized in accordance with the nature of each account and sequenced by their liquidity. Please refer to Note 50 for the maturity analysis of assets and liabilities.

Principles for Preparing Consolidated Financial Statements

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries). Control is achieved when the Company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.

When necessary, adjustments are made to the financial statements of its subsidiaries to bring its accounting policies into line with those used by the Company.

All intragroup transactions, balances, income and expenses are eliminated in full upon consolidation. Related information is shown in Table 11.

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Non-controlling interests in subsidiaries and owners’ interests in the Company are expressed separately. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

The consolidated entities were as follows:

% of Ownership March 31, December 31, March 31, Investor Investee Main Business 2021 2020 2020 Note

SinoPac Financial Holdings Bank SinoPac Commercial bank, trust 100 100 100 Company Limited and foreign exchange services SinoPac Securities Corporation Securities brokering, 100 100 100 (“SinoPac Securities”) dealing and underwriting SinoPac Venture Capital Corporation. Venture capital investment 100 100 100 (“SinoPac Venture Capital”) SinoPac Securities Investment Trust Securities investment trust, 100 100 100 Co., Ltd. (“SinoPac Securities discretionary investment Investment Trust”) and investment consulting services SinoPac Leasing Corporation Leasing and installment 100 100 100 Note 1 (“SinoPac Leasing”) sales Bank SinoPac Bank SinoPac (China) Ltd. (“Bank Commercial bank 100 100 100 SinoPac (China)”) SinoPac Insurance Brokers Ltd. Insurance brokerage 100 100 100 (“SinoPac Insurance Brokers”) business SinoPac Capital Limited (H.K.) - - - 100 Note 2 (“SinoPac Capital (H.K.)”) SinoPac Capital (H.K.) SinoPac Capital (B.V.I.) Ltd. - - - 100 Note 2 SinoPac Capital (B.V.I.) Ltd. RSP Information Service Company - - - 100 Note 2 Limited SinoPac Securities SinoPac Futures Corporation Futures brokering, dealing, 100 100 100 (“SinoPac Futures”) advisory, managed enterprise and securities investment consulting services SinoPac Securities Investment Service Securities investment 100 100 100 Corporation (“SinoPac Securities consulting and offshore Investment Service”) fund distributor business SinoPac Securities Venture Capital Venture capital 100 100 - Corporation (“SinoPac Securities investment, investment Venture Capital”) consulting and management consulting SinoPac Securities (Cayman) Holdings Investment holding 100 100 100 Ltd. (“SinoPac Securities company (Cayman)”) SinoPac Financial Consulting Corporation management, 100 100 100 (Shanghai) Ltd. (“SinoPac Financial investment and business Consulting (Shanghai)”) information consulting SinoPac Securities (Cayman) SinoPac Securities (Europe) Ltd. Brokerage agency service 100 100 100 (“SinoPac Securities (Europe)”) SinoPac Asset Management (Asia) Asset management and 100 100 100 Ltd. (“SinoPac Asset Management investment consulting (Asia)”) SinoPac Securities (Asia) Ltd. Brokerage and dealing of 100 100 100 (“SinoPac Securities (Asia)”) stocks and futures SinoPac International Holdings In liquidation 100 100 100 Note 3 Limited (“SinoPac International Holdings”) SinoPac Securities (Asia) SinoPac (Asia) Nominees Ltd. Trust accounts on overseas 100 100 100 (“SinoPac (Asia) Nominees”) stocks SinoPac Capital (Asia) Ltd. (“SinoPac Proprietary trading 100 100 100 Capital (Asia)”) SinoPac Solutions and Services Ltd. Fund administration 100 100 100 (“SinoPac Solutions and Services”) service SinoPac International SinoPac Services (Brokers) Limited - - - 100 Note 4 Holdings (“SinoPac Service (Brokers)”) SinoPac Leasing SinoPac Capital International Limited Leasing and installment 100 100 100 Note 1 sales SinoPac International Leasing Corp. Financing and leasing 100 100 100 (“SinoPac International Leasing”) SinoPac Leasing (Tianjin) Co., Ltd. Financing, leasing, 100 100 100 (“SinoPac Leasing (Tianjin)”) account receivable, factoring and trade financing SinoPac Capital International (HK) Leasing, installment sales 100 100 - Note 1 Limited (“SinoPac Capital and financing International (HK)”) SinoPac Venture Capital SinoPlus Venture Capital Corp. - - - 70 Note 5 (“SinoPlus Venture Capital”)

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Note 1: The board of directors of the Company approved to adjust the investment structure in January 2021. SinoPac Leasing which is a wholly-owned subsidiary of SPH will give all its SinoPac Capital International Limited shares to SinoPac Capital International (HK) Limited. The investment structure adjustment mentioned above would be executed once approved by the FSC under letter No. 1100203869 in April 2021.

Note 2: To adjust the investment structure of parent-group, SinoPac Capital (HK), SinoPac Capital (B.V.I.) Ltd. and RSP Information Service Company Limited were dissolved in the period from June to November 2020.

Note 3: The board of directors of SinoPac International Holdings resolved in July 2020 to liquidate, and was approved by the FSC under letter No. 1090355383 in September 2020, returned capital to shareholders in March 2021, and completed liquidation in April 2021.

Note 4: The board of directors of SinoPac Service (Brokers) resolved in November 2018 to liquidate, and was approved by the FSC under letter No. 1070346532 in December 2018, and completed liquidation process in April 2020.

Note 5: The shareholders’ meeting resolved to dissolve SinoPlus Venture Capital on August 31, 2019, and completed liquidation on April 6, 2020.

Other Significant Accounting Policies

Please refer to the Group’s consolidated financial statements for the year ended December 31, 2020 for the significant accounting policies, except for those described below. a. Retirement benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant plan amendments, settlements, or other significant one-off events. b. Income tax

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period’s pre-tax income the tax rate that would be applicable to expected total annual earnings. c. Modification of financial instruments

When a financial instrument is modified, the company and its subsidiaries assess whether the financial assets or financial liabilities are derecognized. If derecognized, it shall be treated as the derecognition of financial assets or financial liabilities. If not derecognized, the company and its subsidiaries will recalculate the total book value of financial assets or the amortized cost of financial liabilities based on the present value of the modified contractual cash flows discounted at the original effective interest rate, and will recognize the modified benefits or losses in the consolidated comprehensive income statement. The costs or charges incurred are treated as adjustments to the book value of the modified financial assets or modified financial liabilities, and amortized in the remaining period after the modification.

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Changes in the basis of contractual cash flow that determine financial assets or financial liabilities caused by changes in interest rate indicators are required by the direct result of the changes in interest rate indicators, and the new basis is economically equivalent to the basis before the change, the company and its subsidiaries adopt The practical expedient approach is regarded as a change in the effective interest rate when determining changes in the basis. If, in addition to changes in the basis for determining contractual cash flows required by the changes in interest rate indicators, additional changes are made to financial assets or financial liabilities, the company and its subsidiaries shall first apply practical expedients to the changes required by the changes in interest rate indicators, and then apply The financial instrument modification requirements apply to any additional changes that do not apply to practical expedients.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, which are described in Note 4, management is required to make judgments, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered 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 period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

Estimated Impairment of Discounts and Loans

According to the Procedures, for estimate of impairment of discounts and loans, the Group makes judgment to classify loan asset and evaluate credit losses based on the information of loan term and situation of pledged collateral value and financial position of debtor.

The Group also makes assumptions about probability of default and loss given default. In making these assumptions and in selecting the inputs to the impairment calculation, the Group uses judgment based on past history, existing market conditions, forward-looking estimates, as well as the economic effects of Covid-19. Where the actual future cash inflows are less than expected, a material impairment loss may arise.

6. CASH AND CASH EQUIVALENTS, NET

December 31, March 31, 2021 2020 March 31, 2020

Cash on hand $ 7,095,848 $ 7,100,364 $ 7,456,581 Notes and checks for clearing 1,363,806 1,299,841 872,949 Deposits in banks and due from banks 16,034,809 21,692,109 12,271,285 Short-term bills 109,848 739,692 3,002,912 24,604,311 30,832,006 23,603,727 Less: Allowance for credit losses (18,919) (18,541) (894)

Net amount $ 24,585,392 $ 30,813,465 $ 23,602,833

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Cash equivalents include short-term bills acquired by SinoPac Securities and SinoPac Securities Investment Trust that have a maturity of three months or less from the date of acquisition, high liquidity, readily convertible to a known amount of cash, and subject to an insignificant risk of change in value; these were held for the purpose of meeting short-term cash commitments.

Under the Guidelines on the Management of Country Risk by Banking Financial Institutions issued by the China Banking Regulatory Commission for countries or regions with low risks, Bank SinoPac (China) recognized the country risk provision at 0.5% of the due from banks and call loans to banks (Note 7).

The ranges of market rates for intervals of short-term bills at the end of the reporting period are as follows:

December 31, March 31, 2021 2020 March 31, 2020

Short-term bills 0.20% 0.15%-0.24% 0.23%-0.55%

The carrying amounts of time deposits with original maturities of over three months without early termination option and pledging were classified as other financial assets. Related information is shown in Note 16.

7. DUE FROM THE CENTRAL BANK AND CALL LOANS TO BANKS, NET

December 31, March 31, 2021 2020 March 31, 2020

Call loans to banks $ 48,639,955 $ 57,472,101 $ 70,563,751 Trade finance advance - interbank 6,547,088 5,537,442 2,144,005 Deposit reserve - checking accounts 46,107,237 28,094,216 19,816,506 Due from the Central Bank - interbank settlement funds 6,000,284 4,000,139 2,500,964 Deposit reserve - demand accounts 36,677,043 35,613,480 31,297,875 Deposit reserve - foreign currencies 427,990 427,626 378,500 Deposit - other 7,576,330 8,745,471 3,285,715 151,975,927 139,890,475 129,987,316 Less: Allowance for credit losses (623) (5,916) (11,948)

Net amount $ 151,975,304 $ 139,884,559 $ 129,975,368

Under a directive issued by the Central Bank of the ROC, New Taiwan dollar (NTD) - denominated deposit reserves of Bank SinoPac are determined monthly at prescribed rates based on the average balances of customers’ NTD-denominated deposits. Deposit reserve - demand accounts should not be used, except for adjusting the deposit reserve account monthly. In addition, the foreign-currency deposit reserves are determined at prescribed rates based on the balances of foreign-currency deposits. These reserves can be withdrawn momentarily anytime at no interest.

Under the relevant provisions issued by People’s Bank of China, Bank SinoPac (China) made deposit reserves in proportion to deposit account balances at the end of each month.

Please refer to Note 46 for due from the Center Bank and can loans to banks as pledged or mortgaged assets.

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8. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

December 31, March 31, 2021 2020 March 31, 2020

Financial assets mandatorily classified as at fair value through profit or loss Operating securities - dealing, net $ 28,893,367 $ 25,884,369 $ 21,221,314 Government bonds 19,832,774 26,528,505 39,832,421 Operating securities - hedging, net 2,849,743 2,154,885 814,809 Commercial papers 2,848,168 2,348,878 - Stocks 2,623,688 2,127,601 1,440,634 Corporate bonds 1,670,988 1,410,892 424,758 Certificates of deposits purchased 1,339,403 1,998,231 2,118,521 Operating securities - underwriting, net 805,257 747,203 208,195 Bank debentures 420,500 312,118 927,245 Treasury bills - - 7,975,252 Currency swap contracts 10,907,308 13,560,660 5,610,648 Interest rate swap contracts 3,678,907 5,717,753 9,806,966 Forward contracts 714,817 1,131,616 2,128,682 Option contracts 370,227 1,051,600 1,552,133 Hybrid FX swap structured instruments 318,695 270,401 731,101 Others 1,228,334 922,928 1,081,757 78,502,176 86,167,640 95,874,436 Financial assets designated as at fair value through profit or loss Government bonds 1,215,454 1,277,491 - Corporate bonds 1,185,094 1,378,097 774,318 2,400,548 2,655,588 774,318

$ 80,902,724 $ 88,823,228 $ 96,648,754

Held-for-trading financial liabilities Securities purchased under resell agreements - short sales bonds $ 1,068,063 $ 236,430 $ 23,539 Borrowing security payable 114,818 153,445 228,267 Currency swap contracts 11,620,083 15,536,194 6,133,887 Liabilities for issuance of warrants 8,010,752 6,266,946 4,604,644 Interest rate swap contracts 2,299,498 3,909,655 8,053,258 Asset swap contracts 1,704,587 1,338,026 324,265 Option contracts 831,397 1,153,931 3,389,729 Forward contracts 763,586 1,149,656 2,215,939 Hybrid FX swap structured instruments 318,505 270,239 730,726 Repurchase of liabilities for issuance of warrants (7,242,802) (5,777,926) (4,469,550) Others 193,264 383,568 369,969 19,681,751 24,620,164 21,604,673 Financial liabilities designated as at fair value through profit or loss Bank debentures 1,538,764 1,520,769 1,562,317 Liabilities for structured notes 554,106 352,141 2,898,050 2,092,870 1,872,910 4,460,367

$ 21,774,621 $ 26,493,074 $ 26,065,040

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a. The Group’s financial assets at fair value through profit or loss originally maintained the business model by cash flows derived from contracts and the sales of financial assets, and are designated to hedge against the interest rate risk; the financial liabilities at fair value are specified for mixed commodities and for eliminating inconsistencies in accounting recognition. b. As of March 31, 2021, December 31, 2020 and March 31, 2020, the par values of financial assets at FVTPL under repurchase agreements were $13,400,182, $11,149,980 and $12,293,860, respectively. c. Information on financial liabilities designated as at fair value through profit or loss were as follows:

December 31, March 31, 2021 2020 March 31, 2020

Difference between carrying amounts and the amounts due on maturity Fair value $ 1,538,764 $ 1,520,769 $ 1,562,317 Amounts due on maturity (1,600,059) (1,598,698) (1,698,047)

$ (61,295) $ (77,929) $ (135,730)

Changes in Fair Value Attributable to Changes in Credit Risk

Change in amount during the period For the three months ended March 31, 2021 $ 3,051 For the three months ended March 31, 2020 $ (11,321)

Accumulated amount of change As of March 31, 2021 $ (79,292) As of March 31, 2020 $ (79,363)

The change in fair value attributable to changes in credit risk recognized as other comprehensive income was calculated as the difference between the total change in fair value of bank debentures and the change in fair value due to the change in market risk factors. The change in fair value due to market risk factors was calculated using benchmark interest yield curves as at the end of the reporting period holding the credit risk margin constant and interest rates swap volatility surface. The fair value of bank debentures was estimated by discounting future cash flows using quoted benchmark interest yield curves as at the end of the reporting period and credit risk margin is estimated by obtaining credit default swap spread of the company with similar credit rating.

On May 19, 2017, Bank SinoPac issued unsecured senior bank debentures amounting to US$45,000 thousand with a 30-year maturity, zero coupon issued and an implicit internal rate of return of 4.5%. In accordance with the terms of the bank debentures, Bank SinoPac may either redeem the bonds at an agreed-upon price after five years from the issue date, or make bond repayments on the maturity date.

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d. The Group engages in derivative transactions mainly to accommodate customers’ needs and manage its own exposure positions. Outstanding derivative contracts (nominal) as of March 31, 2021, December 31, 2020 and March 31, 2020 were as follows:

December 31, March 31, 2021 2020 March 31, 2020

Currency swap contracts $ 1,035,033,248 $ 1,012,726,205 $ 1,318,163,404 Interest rate swap contracts 854,000,055 792,736,372 899,887,297 Forward contracts 67,989,079 85,963,757 135,459,508 Option contracts 23,023,191 31,542,951 50,282,224 Futures contracts 14,483,287 13,556,986 14,587,527 Asset swap contracts 11,835,084 10,622,301 9,759,200 Cross-currency swap contracts 7,799,546 12,933,171 12,142,642 Hybrid FX swap structured instruments 7,222,863 7,520,729 8,662,540 Equity-linked swap contracts 909,128 413,311 221,303 Principal guaranteed contracts 310,327 25,000 2,766,860 Equity derivatives contracts 146,218 - - Credit-linked swap contracts 144,000 188,500 40,000 Commodity-linked swap contracts - 648,263 688,549

9. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

December 31, March 31, 2021 2020 March 31, 2020

Equity instruments at fair value through other comprehensive income $ 15,843,675 $ 15,905,517 $ 11,461,325 Debt instruments at fair value through other comprehensive income 347,457,931 334,308,283 258,499,431

$ 363,301,606 $ 350,213,800 $ 269,960,756

a. Equity instruments at fair value through other comprehensive income

December 31, March 31, 2021 2020 March 31, 2020

Listed common stock $ 12,277,597 $ 12,372,108 $ 8,441,997 Unlisted common stock 2,347,684 2,375,348 1,347,544 Real estate investment trust beneficiary securities 1,218,394 1,158,061 1,671,784

$ 15,843,675 $ 15,905,517 $ 11,461,325

The Group holds equity instruments for the purpose of long-term strategic investment, for earning stable income and for increasing the rate of return of investment portfolio or for acquiring stable dividends but not for the purpose of trading; therefore, the equity instruments are designated as at fair value through other comprehensive income.

Due to the capital reduction and refund of shares, and management the risk of investment position. The Group sold the stocks at a fair value of $2,153,494 and $5,489,512 and transferred the gain or loss of gain $511,584 and loss $465,380 from other equity to retained earnings for the three months ended March 31, 2021 and 2020, respectively.

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b. Debt instruments at fair value through other comprehensive income

December 31, March 31, 2021 2020 March 31, 2020

Certificates of deposits purchased $ 119,405,695 $ 125,377,298 $ 92,531,881 Bank debentures 86,135,579 85,172,854 72,245,287 Corporate bonds 49,111,680 43,582,691 35,405,620 Commercial papers 43,208,933 55,036,188 47,092,293 Government bonds 33,234,376 19,493,938 10,753,796 Others 16,361,668 5,645,314 470,554

$ 347,457,931 $ 334,308,283 $ 258,499,431

1) Loss allowance of debt instruments at fair value through other comprehensive income were $68,121, $64,341 and $53,317 on March 31, 2021, December 31, 2020 and March 31, 2020. Credit risk management and information of impairment valuation of debt instruments at FVTOCI are shown in Note 50 and 9.

2) As of March 31, 2021, December 31, 2020 and March 31, 2020, the par value of debt instruments at FVTOCI under repurchase agreements were $12,502,852, $6,961,298 and $10,490,565, respectively.

10. INVESTMENTS IN DEBT INSTRUMENTS AT AMORTIZED COST

December 31, March 31, 2021 2020 March 31, 2020

Government bonds $ 55,755,302 $ 55,013,400 $ 59,744,312 Certificates of deposit purchased 40,797,663 49,812,542 48,041,400 Bank debentures 29,271,537 29,438,199 23,329,274 Asset-based securities 13,878,976 15,356,937 - Corporate bonds 11,292,704 11,296,477 10,759,580 Others 1,441,913 1,462,770 1,265,700 152,438,095 162,380,325 143,140,266 Less: Impairment loss (11,860) (11,891) (8,219)

Net amount $ 152,426,235 $ 162,368,434 $ 143,132,047

a. Credit risk management and information of impairment valuation of investment in debt instruments at amortized cost are shown in Note 50 and Table 10.

b. Please refer to Note 46 for information relating to investment in debt instruments at amortized cost pledged as security.

c. As of March 31, 2021, December 31, 2020 and March 31, 2020, the par value of debt instruments at amortized cost under repurchase agreements were $118,200, $230,200 and $3,796,700, respectively.

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11. SECURITIES PURCHASED UNDER RESELL AGREEMENTS

December 31, March 31, 2021 2020 March 31, 2020

Commercial paper $ 51,175,559 $ 42,403,035 $ 14,475,310 Government bonds 6,951,054 1,963,442 3,894,435 Corporate bonds 4,996,413 4,072,145 3,472,544 Bank debentures 4,329,457 3,695,051 3,217,706 Negotiable certificates of deposits 2,026,311 2,947,256 2,176,744

$ 69,478,794 $ 55,080,929 $ 27,236,739

Agreed-upon resell amount $ 69,523,250 $ 55,096,594 $ 27,305,985 Par value 71,400,733 55,733,587 28,529,193

Expiry July 2021 April 2021 June 2020

As of March 31, 2021, December 31, 2020 and March 31, 2020, the par value of securities purchased under resell agreements under repurchase agreements were $13,663,446, $7,568,343 and $7,922,947, respectively.

12. RECEIVABLES, NET

December 31, March 31, 2021 2020 March 31, 2020

Margin loans receivable $ 21,310,845 $ 17,776,553 $ 9,820,492 Credit card receivables 17,990,311 19,109,830 16,692,786 Accounts receivable - settlement 17,821,228 15,524,965 7,379,514 Accounts receivable - factoring 11,726,955 10,588,014 10,402,500 Accounts receivable - forfaiting 7,022,507 6,896,929 4,864,473 Acceptances 5,205,232 5,464,770 2,980,645 Interest and revenue receivables 4,082,526 4,575,517 4,049,616 Lease receivables and installment 3,562,355 4,010,083 3,670,364 Receivables from securities sale 2,403,812 985,815 9,608,850 Accounts and notes receivable 2,005,642 2,199,970 3,698,090 Trust administration fee revenue receivable 748,554 678,263 721,116 Settlement price - 1,567,314 - Accounts receivable - disposal of subsidiary - - 212,899 Others 2,205,473 2,143,182 1,977,751 96,085,440 91,521,205 76,079,096 Less: Allowance for credit losses (836,496) (892,903) (859,174) Premium or discount on receivables (1,081) 1,226) (29)

Net amount $ 95,247,863 $ 90,627,076 $ 75,219,893

The lease receivables and installments listed in the above periods refer to the receivables due within one year and the balance of unrealized interest income.

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The Group assessed the collectability of receivables to determine the allowance. Movements in the allowance of receivables were as follows:

For the Three Months Ended March 31 2021 2020

Balance, January 1 $ 892,903 $ 1,320,989 (Reversal of) provision (29,136) 27,251 Write-off (35,097) (467,001) Reclassification 10,777 (20,136) Effect of exchange rate changes (2,951) (1,929)

Balance, March 31 $ 836,496 $ 859,174

Please refer to Note 50 and Tables 6 and 8 for the analysis of receivable impairment loss for information on pledged as security. The recovery of receivables write-off as deduction of provision for the three months ended March 31, 2021 and 2020 were $40,574 and $41,410, respectively.

The board of directors of Bank SinoPac has resolved to sell 100% equity of SinoPac Bancorp to Cathay General Bancorp on July 8, 2016. The case was approved by the FSC on July 6, 2017, and the settlement was completed on July 14, 2017 (US time). According to the agreement, the total transaction price is US$351,551 thousand, and the buyer will pay 10% of the total transaction price by issuing 926,192 shares of stock. Bank SinoPac has already disposed all the stock. As for the payment schedule of US$100,000 thousand out of total transaction price in the contract (the payment date should not be later than one year after the settlement date), the US$100,000 thousand was fully received in November 2017. Besides, according to the stock purchase agreement, the buyer reserved 10% of the transaction price (US$35,155 thousand, listed by Bank SinoPac in accounts receivable - disposal of subsidiary) as compensation in the event Bank SinoPac breaches the contract. The buyer will repay the amount plus interest within three years after the settlement date. The 50%, 30% and 20% (US$17,578 thousand, US$10,546 thousand and US$7,031 thousand) of above compensation price had been received in July 2018, 2019 and 2020, respectively, and Bank SinoPac recognized the gain on disposal of the subsidiary amounted to $537,205, $327,628 and $207,310. The case recognized cumulative the net gain on disposal of the subsidiary amounted to $414,242.

13. DISCOUNTS AND LOANS, NET

December 31, March 31, 2021 2020 March 31, 2020

Export negotiation $ 1,127,473 $ 632,471 $ 448,247 Overdrafts 2,311 - - Secured overdrafts 60,200 45,108 72,017 Accounts receivable - financing 2,168,305 1,889,011 1,319,049 Short-term loans 153,398,512 133,545,281 165,393,794 Secured short-term loans 108,383,397 106,862,375 113,415,928 Medium-term loans 278,261,992 271,245,056 202,271,157 Secured medium-term loans 144,661,974 131,617,981 101,660,858 Long-term loans 9,380,142 8,362,312 7,842,557 (Continued)

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December 31, March 31, 2021 2020 March 31, 2020

Secured long-term loans $ 509,360,599 $ 505,180,825 $ 492,928,907 Nonperforming loans transferred from loans 1,302,936 948,785 1,641,919 1,208,107,841 1,160,329,205 1,086,994,433 Less: Allowance for credit losses (15,429,312) (15,065,694) (14,120,701) Less: Premium or discount on discounts and loans (486,000) (485,367) (440,279)

Net amount $ 1,192,192,529 $ 1,144,778,144 $ 1,072,433,453 (Concluded)

a. Please refer to Note 50 and Tables 6 and 7 for the analysis of impairment loss on discounts and loans. Please refer to Note 46 for information on discounts and loans pledged as security. Except accounting policy on impairment of financial assets in 2020 consolidated financial report Note 4, SinoPac (China) also follows the local authority, maintaining an allowance of at least 1.5% of loans and 120% of non-performing loans for the year ended December 31, 2021 and 2020.

b. The Group assessed the collectability of discounts and loans to determine the required allowance. Movements in the allowance of discounts and loans were as follows:

For the Three Months Ended March 31 2021 2020

Balance, January 1 $ 15,065,694 $ 13,825,619 Provision 565,451 697,827 Write-off (199,494) (409,949) Effect of exchange rate changes (2,339) 7,204

Balance, March 31 $ 15,429,312 $ 14,120,701

The Group received payments for loans previously written-off $138,125 and $94,649 for the three months ended March 31, 2021 and 2020, respectively, which were recognized as deduction of provision expenses.

14. INVOLVEMENT WITH UNCONSOLIDATED STRUCTURED ENTITIES

The tables below show the information of unconsolidated structures entities in which the Group had an interest at the reporting date:

Type of Structured Entity Nature and Purpose The Group’s Ownership

Funds Funds under management by the a. The Group invests in those funds under third party management by the third party. The Group also invests units in b. The Group entitled to receive management these funds fee based on the assets under management.

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The total assets of Funds unrecognized in the consolidated balance sheets were as follows:

December 31, March 31, 2021 2020 March 31, 2020

Funds $ 56,486,608 $ 53,810,067 $ 50,944,891

The carrying amounts of the funds in which the Group also invests were as follows:

December 31, March 31, 2021 2020 March 31, 2020

Financial assets at fair value through profit or loss $ 255,819 $ 314,268 $ 219,011

The maximum exposure of loss was the carrying amount of the funds.

As of March 31, 2021, December 31, 2020 and March 31, 2020, the Group did not provide any financial support to those unconsolidated structures.

15. INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD

December 31, March 31, 2021 2020 March 31, 2020

Golden Trust SinoPac Fund Management $ 515,176 $ 486,429 $ 406,876 Telexpress 100,062 103,606 99,389

$ 615,238 $ 590,035 $ 506,265

Principal Proportion of Ownership and Voting Rights Name of Nature of Place of March 31, December 31, March 31, Associate Activities Business 2021 2020 2020

Golden Trust Fund raising and China 49.00% 49.00% 49.00% SinoPac Fund sale, asset Management management business approved by CSRC Telexpress Stockholding Cayman Islands/ 34.21% 34.21% 34.21% Taiwan

The Group accounts for investments using the equity method, and hence the profit or loss and other comprehensive income resulting from the investments therefore are prorated accordingly based on the shares. The calculation of the share of other investments was based on the investee’s unreviewed financial statements, however, the management of the Group believes that the aforesaid investment should not cause material impact to the Group’s financial statements.

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The associates’ financial information is summarized as follows:

For the Three Months Ended March 31 2021 2020

The Group’s share of: Net income (loss) $ 29,793 $ 3,953 Other comprehensive (loss) (589) (1,936)

$ 29,204 $ 2,017

16. OTHER FINANCIAL ASSETS, NET

December 31, March 31, 2021 2020 March 31, 2020

Customer margin deposits $ 26,642,106 $ 21,667,442 $ 18,204,382 Time deposits not belonging to cash and cash equivalents 10,428,137 9,877,272 10,710,095 Purchase of the PEM Group’s instruments 4,215,395 4,177,027 4,411,513 Long-term lease receivables and installment 1,976,511 2,130,189 2,426,569 Nonperforming receivables transferred from other than loans 197,568 182,432 95,269 Others 449,802 618,312 557,204 43,909,519 38,652,674 36,405,032 Less: Allowance for credit loss (186,451) (201,904) (136,055) Accumulated impairment (2,267,651) (2,256,444) (1,963,540)

Net amount $ 41,455,417 $ 36,194,326 $ 34,305,437

Above time deposits not belonging to cash and cash equivalent included time deposits with terms of over three months; pledged and no advance termination time deposits. The long-term leases receivable and installments presented in each period are the balance after deducting unrealized interest income.

Please refer to Note 46 for information on other financial assets pledged as security.

The Group assessed the collectability of other financial assets to determine the required allowance. Movements in the allowance of other financial assets were as follows:

For the Three Months Ended March 31 2021 2020

Balance, January 1 $ 201,904 $ 212,188 (Reversal of) provision 5,791 (72,218) Write off (10,100) (23,545) Reclassifications (10,777) 20,136 Effect of exchange rate changes (367) (506)

Balance, March 31 $ 186,451 $ 136,055

The Group received payments for loans previously written-off $3,671 and $6,426 for the three months ended March 31, 2021 and 2020, respectively, which were recognized as deduction of provision expenses.

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Bank SinoPac was delegated by professional investors to sell the PEM Group’s investment products amounting to US$146,000 thousand through private placement. A U.S. Federal Court appointed a receiver for all assets that belonged to, were being managed by, or were in the possession of or control of the PEM Group. To protect the client’s interests, Bank SinoPac bought back the products at the price of the initial payment net of the distribution and redemption costs. On December 24, 2010, Bank SinoPac’s board of directors resolved to abide by the Court’s appointment of a PEM Group receiver to take the PEM Group’s insurance policies at the price of approximately US$40.4 million, and Bank SinoPac thus recognized impairment losses of US$11,152 thousand. On March 7, 2011, the receiver transferred a portion of the insurance policies to a trustee established jointly by certain banks to hold insurance policies. And Bank SinoPac had submitted to the authorities the results of this policy transfer. As of March 31, 2021, a reserve of US$79,476 thousand (NT$2,267,651) had been set aside to cover the accumulated impairment losses. Bank SinoPac has recognized impairment losses of $9,286 and $41,373 for the three months ended March 31, 2021 and 2020.

17. INVESTMENT PROPERTY, NET

The movements of investment property are summarized as follows:

For the Three Months Ended March 31, 2021 Land Land Improvements Buildings Total

Cost

Balance, January 1 $ 1,951,302 $ 6,583 $ 937,058 $ 2,894,943 Addition - - 79 79 Deduction - - - - Reclassifications - - - - Balance, March 31 1,951,302 6,583 937,137 2,895,022

Accumulated depreciation

Balance, January 1 - 5,414 400,472 405,886 Depreciation - 70 5,021 5,091 Deduction - - - - Reclassifications - - - - Balance, March 31 - 5,484 405,493 410,977

Accumulated impairment

Balance, January 1 14,532 - 22,772 37,304 Addition - - - - Deduction - - - - Balance, March 31 14,532 - 22,772 37,304

Net amount

Balance, March 31 $ 1,936,770 $ 1,099 $ 508,872 $ 2,446,741

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For the Three Months Ended March 31, 2020 Land Land Improvements Buildings Total

Cost

Balance, January 1 $ 1,968,388 $ 6,583 $ 952,859 $ 2,927,830 Addition - - 176 176 Deduction - - - - Reclassifications - - - - Balance, March 31 1,968,388 6,583 953,035 2,928,006

Accumulated depreciation

Balance, January 1 - 4,610 391,804 396,414 Depreciation - 244 5,025 5,269 Deduction - - - - Reclassifications - - - - Balance, March 31 - 4,854 396,829 401,683

Accumulated impairment

Balance, January 1 14,532 - 22,772 37,304 Addition - - - - Deduction - - - - Balance, March 31 14,532 - 22,772 37,304

Net amount

Balance, March 31 $ 1,953,856 $ 1,729 $ 533,434 $ 2,489,019

The above investment properties are depreciated at the following estimated useful lives:

Category Useful Lives

Land improvements 2.75-10 years Buildings 2-61 years

The investment property of Bank SinoPac was held for earning rentals and/or for capital appreciation. The fair values of properties used mainly or partially by lease for Bank SinoPac’s investment properties as of March 31, 2021, December 31, 2020 and March 31, 2020 were $5,760,913, $5,760,913 and $9,586,111, respectively. The fair values, which were based on an internal valuation yearly report instead of an assessment by an independent professional appraiser, determined assuming were unobservable inputs (Level 3).

The fair values of SinoPac Securities’ investment properties as of March 31, 2021, December 31, 2020 and March 31, 2020 were $299,924, $299,924 and $268,794, respectively. The fair values were arrived at not through the valuations of independent experts but by reference to unobservable inputs (Level 3), i.e., neighboring area transaction prices and appraise from 2020 and 2019 and neighboring area transaction prices from 2019 and 2018.

The fair values of SinoPac Leasing’s investment properties as of March 31, 2021, December 31, 2020 and March 31, 2020 were $7,007,060-$7,017,870, $7,007,060-$7,017,870 and $7,104,973-$7,121,397, respectively. The fair values were based on external valuation report issued by independent experts or estimated transaction price using level 2 and level 3 inputs from January 2017 to October 2020.

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Please refer to Note 46 for information on investment properties pledged as security. Fair value information was described in Note 49.

18. PROPERTY AND EQUIPMENT, NET

The movements of property and equipment are summarized as follows:

For the Three Months Ended March 31, 2021 Prepayments for Equipment Machinery and and Land and Land Computer Transportation Other Leasehold Construction in Improvements Buildings Equipment Equipment Equipment Improvement Progress Total

Cost

Balance, January 1 $ 7,324,800 $ 7,703,353 $ 2,565,058 $ 517,647 $ 1,647,007 $ 1,813,620 $ 235,903 $ 21,807,388 Addition - 1,766 46,842 47,285 27,075 18,955 70,046 211,969 Deduction - - (32,643 ) (12,837 ) (19,860 ) (47,026 ) - (112,366 ) Reclassifications - 2,597 (3,537 ) - 680 - (103,902 ) (104,162 ) Effect of exchange rate changes - (2,937 ) (1,152 ) (2 ) (87 ) (926 ) (129 ) (5,233 ) Balance, March 31 7,324,800 7,704,779 2,574,568 552,093 1,654,815 1,784,623 201,918 21,797,596

Accumulated depreciation

Balance, January 1 37 4,183,402 1,485,184 170,894 1,236,924 1,512,173 - 8,588,614 Depreciation 6 45,160 89,981 30,257 26,718 23,425 - 215,547 Deduction - - (31,980 ) (8,575 ) (19,414 ) (46,763 ) - (106,732 ) Reclassifications - - (2,825 ) - - - - (2,825 ) Effect of exchange rate changes - (359 ) (856 ) (2 ) (64 ) (826 ) - (2,107 ) Balance, March 31 43 4,228,203 1,539,504 192,574 1,244,164 1,488,009 - 8,692,497

Net amount

Balance, March 31 $ 7,324,757 $ 3,476,576 $ 1,035,064 $ 359,519 $ 410,651 $ 296,614 $ 201,918 $ 13,105,099

For the Three Months Ended March 31, 2020 Prepayments for Equipment Machinery and and Computer Transportation Other Leasehold Construction in Land Buildings Equipment Equipment Equipment Improvement Progress Total

Cost

Balance, January 1 $ 7,307,714 $ 7,570,201 $ 2,520,378 $ 297,657 $ 1,566,040 $ 1,798,622 $ 386,211 $ 21,446,823 Addition - 6,529 132,062 55,057 51,861 1,125 105,923 352,557 Deduction - - (362,630 ) (9,285 ) (11,914 ) (35,103 ) - (418,932 ) Reclassifications - 12,990 178,795 - (5,342 ) 61,197 (300,826 ) (53,186 ) Effect of exchange rate changes - (4,835 ) 2,367 12 74 (68 ) (281 ) (2,731 ) Balance, March 31 7,307,714 7,584,885 2,470,972 343,441 1,600,719 1,825,773 191,027 21,324,531

Accumulated depreciation

Balance, January 1 14 3,994,859 1,802,070 93,559 1,246,681 1,503,929 - 8,641,112 Depreciation 6 44,041 69,370 19,389 23,815 29,017 - 185,638 Deduction - - (353,871 ) (7,809 ) (11,546 ) (33,692 ) - (406,918 ) Reclassifications - - 19,888 - (22,052 ) - - (2,164 ) Effect of exchange rate changes - (404 ) 2,232 12 296 163 - 2,299 Balance, March 31 20 4,038,496 1,539,689 105,151 1,237,194 1,499,417 - 8,419,967

Net amount

Balance, March 31 $ 7,307,694 $ 3,546,389 $ 931,283 $ 238,290 $ 363,525 $ 326,356 $ 191,027 $ 12,904,564

The above property and equipment are depreciated at the following estimated useful lives:

Category Useful Lives

Land improvements 8-30 years Buildings 2-60 years Machinery and computer equipment 0.58-15 years Transportation equipment 3-6 years Other equipment 2-15 years Leasehold improvement 1-15 years

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Please refer to Note 46 for the information on property and equipment pledged as security. The amount of other equipment and transportation equipment rented out as of March 31, 2021, December 31, 2020 and March 31, 2020 was $333,330, $316,841 and $212,801.

19. LEASE ARRANGEMENTS

a. Right-of-use assets, net

December 31, March 31, 2021 2020 March 31, 2020

Carrying amounts

Land and surface rights $ 986,566 $ 995,788 $ 1,023,611 Buildings 2,374,963 2,381,088 2,127,576 Machinery and computer equipment 167,512 4,528 22,047 Transportation equipment 11,517 10,500 6,599 Other equipment 2,931 2,066 2,176 Decommissioning restoration costs 31,501 32,110 27,936

$ 3,574,990 $ 3,426,080 $ 3,209,945

For the Three Months Ended March 31 2021 2020

Additions to right-of-use assets $ 387,955 $ 145,813

Depreciation charge for right-of-use assets Land and surface rights $ 9,222 $ 9,240 Buildings 205,716 198,711 Machinery and computer equipment 8,502 6,735 Transportation equipment 1,697 1,581 Other equipment 347 249 Decommissioning restoration costs 2,493 2,390

$ 227,977 $ 218,906

Right-of-use assets sublease revenue (financing interest revenue) $ 289 $ 307

Please refer to Note 46 for information on right-of-use assets pledged as security.

b. Lease liabilities

December 31, March 31, 2021 2020 March 31, 2020

Carrying amounts $ 2,971,982 $ 2,824,915 $ 2,570,456

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Range of discount rate for lease liabilities was as follows:

December 31, March 31, 2021 2020 March 31, 2020

Land and surface rights 0.1404%- 0.7357%- 0.7357%- 2.6329% 2.6329% 4.8096% Buildings 0.1553%- 0.1553%- 0.5609%- 6.1000% 6.1000% 6.1000% Machinery and computer equipment 0.5754%- 0.6100%- 0.7357%- 1.0768% 1.0768% 1.7936% Transportation equipment 0.3804%- 0.4583%- 0.4583%- 5.8366% 5.8366% 5.8366% Other equipment 0.3410%- 0.3410%- 0.7357%- 5.8366% 5.8366% 5.8366% c. Material lease-in activities and terms

The Group leases certain land and buildings for use as business locations and operating assets with lease terms of 1 year to 30.1 years. The lease contract for major buildings for 30.1 years located in Taiwan for use as offices and branches specifies that lease payments will be adjusted a year on the basis of current announcement land value 5%. The lease contract for major buildings located in overseas branches stipulated fixed or regularly adjusted proportionally lease payments. The lease contract for parking space for 15.9 years located in Taiwan for clients’ using will be adjusted since the fourth year of the rent day. The Group does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms. d. Other lease information

Lease arrangements under operating leases for the leasing out of investment properties and equipment are set out in Notes 17, 18 and 50.

For the Three Months Ended March 31 2021 2020

Expenses relating to short-term leases $ 6,576 $ 8,058 Expenses relating to low-value asset leases $ 10,721 $ 9,695 Expenses relating to variable lease payments not included in the measurement of lease liabilities $ 3,064 $ 1,849 Total cash outflow for leases $ (268,176) $ (256,800)

Recognition exemption is applied to short-term leases of various types of assets such as other equipment which qualify as low-value asset leases. The Group has elected to apply the recognition exemption and, thus, did not recognize right-of-use assets and lease liabilities for these leases.

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20. INTANGIBLE ASSETS, NET

December 31, March 31, 2021 2020 March 31, 2020 Items

Goodwill $ 1,088,243 $ 1,088,243 $ 1,088,243 Computer software 835,660 776,594 720,309 Customer relationships 256,048 273,914 337,850 Membership fees 41,413 41,413 41,413 Others 7,083 7,204 7,195

$ 2,228,447 $ 2,187,368 $ 2,195,010

Movements in the Group’s intangible assets were as follows:

Computer Customer Membership Goodwill Software Relationships Fees Others Total

Balance January 1, 2021 $ 1,088,243 $ 776,594 $ 273,914 $ 41,413 $ 7,204 $ 2,187,368 Addition - 27,943 - - - 27,943 Amortization - (69,368) (17,913) - (64) (87,345) Reclassifications - 101,337 - - - 101,337 Effect of exchange rate changes - (846) 47 - (57) (856)

Balance March 31, 2021 $ 1,088,243 $ 835,660 $ 256,048 $ 41,413 $ 7,083 $ 2,228,447

Balance January 1, 2020 $ 1,088,243 $ 692,412 $ 357,539 $ 41,413 $ 7,358 $ 2,186,965 Addition - 39,211 - - - 39,211 Amortization - (61,236) (20,200) - (63) (81,499) Reclassifications - 51,022 - - - 51,022 Effect of exchange rate changes - (1,100) 511 - (100) (689)

Balance March 31, 2020 $ 1,088,243 $ 720,309 $ 337,850 $ 41,413 $ 7,195 $ 2,195,010

The above intangible assets are amortized on a straight-line basis over the following estimated useful lives:

Items Years

Computer software 1-10.58 years Customer relationships 8-15 years

Goodwill in each above period will be tested for impairment annually and whenever there is an indication that it may be impaired. In assessing whether goodwill on an equity investment or an unamortized difference between the acquisition cost and the equity is impaired, the Company considered the credit card department of Bank SinoPac or the Company’s investee company as a cash generating unit and estimated the recoverable amount of the investee’s value in use. The Group used an investee’s actual profitability and estimated salvage value in making key assumptions to predict the investee’s future cash flows and thus calculate the investee’s value in use. Under a going concern assumption, the Group predicted the net cash flows that would be generated from the investee’s operating activities in the next 5 years and estimated the salvage value and used the Company’s weighted average cost of capital to calculate the value in use. The goodwill had been tested for impairment on October 31, 2020 and 2019.

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Information on goodwill is summarized as follows:

a. The amounts of $876,717 was recognized as goodwill from Bank SinoPac’s cash merger with SinoPac Card Services, and this merger was treated as a reorganization of the Company.

For the three months ended March 31, 2021, for the year ended December 31, 2020 and for the three months ended March 31, 2020 the amounts of net income affiliated with cash generating units were $49,201, $108,232 and $132,101, respectively. The amounts of expected net income for the years 2021 and 2020 as assessed by the impairment test on goodwill would be $84,069 and $78,125, respectively. The recoverable amount was expected to be higher than the book value. Therefore, the Company found no objective evidence that goodwill had been impaired as of March 31, 2021 and 2020.

b. As of March 31, 2021, SinoPac Securities and its subsidiaries had the following goodwill:

1) The goodwill on the merger of SinoPac Securities merged with Pacific Securities and BEA Securities Broker was $147,944.

For the three months ended March 31, 2021, for the year ended December 31, 2020 and for the three months ended March 31, 2020 the amounts of net income which are not included share of profit of associates accounted for using equity method were $905,436, $2,317,404 and $27,564, respectively. The amounts of expected net income were $2,079,067 and $1,476,471 in 2021 and 2020, respectively. Due to the actual operating results were better than expected, the recoverable amount was expected to be higher than the book value. Therefore, the Group found no objective evidence that goodwill had been impaired.

2) The goodwill on the merger of SinoPac Futures merged with Pacific Securities Futures Broker and the shares that bought from other shareholders of SinoPac Futures were $63,582.

For the three months ended March 31, 2021, for the year ended December 31, 2020 and for the three months ended March 31, 2020, the amounts of actual net income were $96,864 and $350,724 and $113,593, respectively. The amounts of expected net income were $340,799 and $337,194 in 2021 and 2020, respectively. There was no significant difference between the results of actual operation and expected benefit. The recoverable amount exceeded the book value as assessed, so there was no impairment loss as of March 31, 2021 and 2020.

Membership fees are considered to have an indefinite useful life. A membership fee will not be amortized until its useful life is determined to be finite. Instead it will be tested for impairment annually and whenever there is an indication that it may be impaired.

21. OTHER ASSETS, NET

December 31, March 31, 2021 2020 March 31, 2020

Amounts held for settlement $ 9,830,935 $ 9,439,404 $ 8,207,697 Securities borrowing margins 2,971,299 2,798,716 3,752,784 Guarantee deposits 2,731,651 3,502,876 4,813,624 Operating guarantee deposits and settlement fund 1,337,448 1,332,857 1,385,423 Prepayment 414,625 363,370 720,156 Temporary payments and suspense accounts 145,059 290,333 183,521 Collaterals 37,345 37,644 36,615 (Continued)

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December 31, March 31, 2021 2020 March 31, 2020

Receipts under custody from customers’ security subscription $ 2,573 $ 2,181,216 $ 5,177 Others 104,939 106,321 109,171 17,575,874 20,052,737 19,214,168 Less: Allowance for inventory write-down - gold (268) - - Less: Accumulated impairment (7,935) (7,935) (7,955)

Net amount $ 17,567,671 $ 20,044,802 $ 19,206,213 (Concluded)

Operating guarantee deposits is mainly used as the legal deposit paid to financial institutions designated by relevant authorities to hold these deposits when the subsidiaries register or sets up a branch office in accordance with government regulations.

Under government regulations, when companies accept consignments for trading on the centralized securities exchange market, they should deposit a settlement/clearing fund in the Taiwan Stock Exchange, Taipei Exchange, Taiwan Futures Exchange and overseas stock and futures exchanges.

Collaterals are customer’s debt assets of SinoPac International Leasing to offset its claim. Collaterals are measured at fair value of acquisition and perform the impairment test to assess the impairment periodically.

22. DEPOSITS FROM THE CENTRAL BANK AND BANKS

December 31, March 31, 2021 2020 March 31, 2020

Call loans from banks $ 79,251,548 $ 65,288,823 $ 49,725,550 Redeposits from Chunghwa Post 10,090,000 10,090,000 10,136,060 Due to banks 61,020 135,547 48,798

$ 89,402,568 $ 75,514,370 $ 59,910,408

23. SECURITIES SOLD UNDER REPURCHASE AGREEMENTS

December 31, March 31, 2021 2020 March 31, 2020

Bank debentures $ 17,665,470 $ 11,614,248 $ 12,272,932 Corporate bonds 11,275,520 7,737,181 7,312,999 Government bonds 5,904,236 2,427,912 7,930,729 Convertible bonds 4,406,000 3,856,000 4,141,804 Financial assets securitization - - 132,000

$ 39,251,226 $ 25,635,341 $ 31,790,464

Agreed-upon repurchase price $ 39,298,774 $ 25,660,930 $ 31,839,593 Pair value $ 39,684,680 $ 25,909,821 $ 34,504,072

Expiry March 2022 June 2021 September 2020

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24. COMMERCIAL PAPERS ISSUED, NET

December 31, March 31, 2021 2020 March 31, 2020

Commercial papers issued $ 37,090,000 $ 29,025,000 $ 28,312,400 Less: Unamortized discount (16,086) (15,243) (33,999)

Net amount $ 37,073,914 $ 29,009,757 $ 28,278,401

Maturity date 2021.4-2021.8 2021.1-2021.4 2020.4-2020.9

Discount rate 0.19%-1.3480% 0.20%-1.4580% 0.49%-1.7607%

Except for free-guarantee items, commercial paper was guaranteed or acceptances were issued by the bill finance corporations or banks. For information on related collaterals, refer to Note 46.

25. PAYABLES

December 31, March 31, 2021 2020 March 31, 2020

Accounts payable for settlement $ 27,004,993 $ 24,494,080 $ 14,562,477 Accounts payable - factoring 6,333,731 2,790,152 2,394,389 Acceptances payable 5,205,232 5,279,510 2,783,830 Accrued expense 2,915,685 4,810,594 2,281,179 Accounts and notes payable 2,720,390 2,558,346 4,331,859 Accounts payable for securities purchased 2,636,198 605,255 11,375,439 Interest payable 1,865,684 2,062,035 3,046,024 Notes and checks in clearing 1,363,806 1,299,841 872,949 Financing guarantees payable 1,319,572 2,536,403 1,108,076 Deposits on short sales 1,176,390 2,215,725 1,007,365 Others 1,797,600 1,807,740 1,920,214

$ 54,339,281 $ 50,459,681 $ 45,683,801

26. DEPOSITS AND REMITTANCES

December 31, March 31, 2021 2020 March 31, 2020

Checking $ 12,633,990 $ 13,690,984 $ 12,280,590 Demand 413,459,862 423,673,572 284,859,961 Savings - demand 460,479,852 434,922,075 363,880,302 Time deposits 551,370,438 526,418,389 529,775,848 Negotiable certificates of deposit 412,400 1,960,000 7,289,800 Savings - time 249,360,964 249,690,008 256,524,990 Inward remittances 1,459,634 3,055,916 817,564 Outward remittances 52,835 59,294 27,021

$ 1,689,229,975 $ 1,653,470,238 $ 1,455,456,076

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27. BONDS PAYABLE

December 31, March 31, 2021 2020 March 31, 2021

Bank debentures $ 45,078,979 $ 45,078,282 $ 36,140,437 Corporate bonds payable 7,429,112 7,432,315 9,993,189

$ 52,508,091 $ 52,510,597 $ 46,133,626

a. Bank debentures

To raise capital for its financial operation and increase its capital adequacy ratio, Bank SinoPac obtained approval from the FSC to issue bank debentures as follows:

December 31, March 31, 2021 2020 March 31, 2020 Date Rates

Second subordinated bank $ 2,999,933 $ 2,999,891 $ 2,999,762 2011.08.18-2021.08.18 Fixed interest rate of 2.18%, debentures issued in 2011 (B) Principal is repayable on maturity date. interest is paid annually. First subordinated bank debentures 1,299,892 1,299,874 1,299,820 2012.09.18-2022.09.18 Fixed interest rate of 1.65%, issued in 2012 (B) Principal is repayable on maturity date. interest is paid annually. Third subordinated bank 699,811 699,798 699,759 2014.09.30-2024.09.30 Fixed interest rate of 2.05%, debentures issued in 2014 (B) Principal is repayable on maturity date. interest is paid annually. First subordinated bank debentures - - 749,966 2015.07.22, no maturity date and Fixed interest rate of 3.90%, issued in 2015 non-cumulative. Bank SinoPac has the interest is paid annually. right to call or buy back from the market after five years. Second subordinated bank - - 459,971 2015.09.08, no maturity date and Fixed interest rate of 3.90%, debentures issued in 2015 non-cumulative. Bank SinoPac has the interest is paid annually. right to call or buy back from the market after five years. Third subordinated bank - - 709,940 2015.11.05, no maturity date and Fixed interest rate of 3.90%, debentures issued in 2015 non-cumulative. Bank SinoPac has the interest is paid annually. right to call or buy back from the market after five years. Fourth subordinated bank - - 139,985 2015.12.15, no maturity date and Fixed interest rate of 3.90%, debentures issued in 2015 non-cumulative. Bank SinoPac has the interest is paid annually. right to call or buy back from the market after five years. First subordinated bank debentures 1,500,000 1,499,969 1,499,825 2016.02.23, no maturity date and Fixed interest rate of 3.90%, issued in 2016 non-cumulative. Bank SinoPac has the interest is paid annually. right to call or buy back from the market after five years. Second subordinated bank 1,030,000 1,029,963 1,029,856 2016.03.30, no maturity date and Fixed interest rate of 3.90%, debentures issued in 2016 non-cumulative. Bank SinoPac has the interest is paid annually. right to call or buy back from the market after five years. Third subordinated bank 1,419,652 1,419,621 1,419,528 2016.12.23-2023.12.23 Fixed interest rate of 1.50%, debentures issued in 2016 Principal is repayable on maturity date. interest is paid annually. First subordinated bank debentures 149,934 149,928 149,912 2017.02.24-2024.02.24 Fixed interest rate of 1.60%, issued in 2017 (A) Principal is repayable on maturity date. interest is paid annually. First subordinated bank debentures 2,099,307 2,099,279 2,099,198 2017.02.24-2027.02.24 Fixed interest rate of 1.90%, issued in 2017 (B) Principal is repayable on maturity date. interest is paid annually. Third subordinated bank 199,935 199,931 199,916 2017.06.28-2024.06.28 Fixed interest rate of 1.70%, debentures issued in 2017 (A) Principal is repayable on maturity date. interest is paid annually. Third subordinated bank 539,770 539,761 539,735 2017.06.28-2027.06.28 Fixed interest rate of 1.95%, debentures issued in 2017 (B) Principal is repayable on maturity date. interest is paid annually. Fourth subordinated bank 2,999,423 2,999,348 2,999,120 2017.06.28, no maturity date and Fixed interest rate of 4.00%, debentures issued in 2017 non-cumulative. Bank SinoPac has the interest is paid annually. right to call or buy back from the market after five and a half years. First subordinated bank debentures 649,753 649,738 649,694 2018.04.30-2025.04.30 Fixed interest rate of 1.40%, issued in 2018 (A) Principal is repayable on maturity date. interest is paid annually. First subordinated bank debentures 499,768 499,760 499,737 2018.04.30-2028.04.30 Fixed interest rate of 1.65%, issued in 2018 (B) Principal is repayable on maturity date. interest is paid annually. First subordinated bank debentures 1,999,283 1,999,229 1,999,080 2019.01.25, no maturity date and Fixed interest rate of 2.40%, issued in 2019 non-cumulative. Bank SinoPac has the interest is paid annually. right to call or buy back from the market after five and a half years. Second subordinated bank 1,199,536 1,199,511 1,199,443 2019.01.25-2026.01.25 Fixed interest rate of 1.40%, debentures issued in 2019 (A) Principal is repayable on maturity date. interest is paid annually. Second subordinated bank 1,799,210 1,799,184 1,799,115 2019.01.25-2029.01.25 Fixed interest rate of 1.55%, debentures issued in 2019 (B) Principal is repayable on maturity date. interest is paid annually. Third senior bank debentures 2,999,735 2,999,715 2,999,655 2019.06.26-2024.06.26 Fixed interest rate of 0.76%, issued in 2019 Principal is repayable on maturity date. interest is paid annually. Fourth subordinated bank 1,499,370 1,499,327 1,499,197 2019.08.23, no maturity date and Fixed interest rate of 2.00%, debentures issued in 2019 non-cumulative. Bank SinoPac has the interest is paid annually. right to call or buy back from the market after five years and a month. Fifth subordinated bank debentures 1,749,257 1,749,225 1,749,124 2019.08.23-2026.08.23 Fixed interest rate of 1.03%, issued in 2019 (A) Principal is repayable on maturity date. interest is paid annually. Fifth subordinated bank debentures 1,749,191 1,749,168 1,749,099 2019.08.23-2029.08.23 Fixed interest rate of 1.13%, issued in 2019 (B) Principal is repayable on maturity date. interest is paid annually. (Continued)

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December 31, March 31, 2021 2020 March 31, 2020 Date Rates

First subordinated bank debentures $ 2,999,260 $ 2,999,217 $ 3,000,000 2020.03.31, no maturity date and Fixed interest rate of 1.35%, issued in 2020 non-cumulative. Bank SinoPac has the interest is paid annually. right to call or buy back from the market after five years and four months. Second subordinated bank 1,999,409 1,999,392 2,000,000 2020.03.31-2030.03.31 Fixed interest rate of 0.75%, debentures issued in 2020 Principal is repayable on maturity date. interest is paid annually. Third subordinated bank 2,899,437 2,899,407 - 2020.06.30, no maturity date and Fixed interest rate of 1.85%, debentures issued in 2020 non-cumulative. Bank SinoPac has the interest is paid annually. right to call or buy back from the market after five years and a month. Fourth subordinated bank 2,599,391 2,599,376 - 2020.06.30-2030.06.30 Fixed interest rate of 1.00%, debentures issued in 2020 Principal is repayable on maturity date. interest is paid annually. Fifth subordinated bank debentures 2,099,582 2,099,560 - 2020.10.29, no maturity date and Fixed interest rate of 1.70%, issued in 2020 non-cumulative. Bank SinoPac has the interest is paid annually. right to call or buy back from the market after five years and a month. Sixth subordinated bank 2,399,467 2,399,454 - 2020.10.29-2030.10.29. Fixed interest rate of 0.87%, debentures issued in 2020 Principal is repayable on maturity date. interest is paid annually. Seventh senior bank debentures 999,673 999,656 - 2020.11.06-2025.11.06 Fixed interest rate of 0.46%, issued in 2020 Principal is repayable on maturity date. interest is paid annually. $ 45,078,979 $ 45,078,282 $ 36,140,437 (Concluded)

b. Corporate bonds payable

For the purpose of raising operating capital and strengthening financial structure. The Company and SinoPac Securities issued the corporate bonds as follows:

December 31, March 31, 2021 2020 March 31, 2020 Maturity Rates

The Company

First unsecured bonds issued $ 4,994,276 $ 4,993,991 $ 4,993,189 2020.01.15-2025.01.15 Fixed interest rate of in 2020 Principal is repayable on maturity date. 0.79%, interest is paid annually.

SinoPac Securities

First unsecured bonds issued - - 3,000,000 2017.12.08-2020.12.08 Fixed interest rate of in 2017 Principal is repayable on maturity date. 0.90%, interest is paid annually. First unsecured bonds issued 2,000,000 2,000,000 2,000,000 2020.01.08-2025.01.08 Fixed interest rate of in 2020 Principal is repayable on maturity date. 0.80%, interest is paid annually. Second unsecured bonds 434,836 438,324 - 2020.12.23-2022.12.23 Fixed interest rate of issued in 2020 Principal is repayable on maturity date. 3.20%, interest is paid annually. $ 7,429,112 $ 7,432,315 $ 9,993,189

28. BORROWINGS

a. Short-term borrowings

December 31, March 31, 2021 2020 March 31, 2020

Credit loans $ 8,003,936 $ 9,436,239 $ 6,063,275 Guaranteed loans 1,860,000 1,970,000 90,000

$ 9,863,936 $ 11,406,239 $ 6,153,275

Maturity date 2021.4-2022.3 2021.1-2021.12 2020.4-2021.3

Range of interest rates per annum 0.95%- 0.70%- 0.30%- 5.51807% 5.50481% 5.5575%

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b. Long-term borrowings

December 31, March 31, 2021 2020 March 31, 2020

Credit loans $ 2,180,401 $ 279,522 $ 1,899,046 Guaranteed loans 2,050,000 2,050,000 1,250,000

$ 4,230,401 $ 2,329,522 $ 3,149,046

Maturity date 2021.4-2022.12 2021.1-2022.12 2020.4-2022.4

Range of interest rates per annum 1.08%- 1.08%- 1.32%- 4.95000% 5.06250% 6.05324%

SinoPac Securities

To meet capital requirements, SinoPac Securities (Cayman) obtained syndicated loans from financial institutions on December 18, 2018 in the amounts of US$60,000 thousand. The term of the syndicated loans is three years from the first drawdown date of December 28, 2018. The loans could be taken on revolving basis. SinoPac Securities (Cayman) could not pledge its securities to others during the term of the loans.

SinoPac Leasing

To raise working capital, SinoPac Leasing entered into a syndicated loan agreement (“2015 Agreement”) of $6,250,000 with a syndicate of 15 banks led by Mega International Commercial Bank in April 2015. The term for syndicated loan transactions is five years from the first used date. The date of first drawdown was May 20, 2015 and matured on May 20, 2020.

To raise working capital, SinoPac Leasing entered into a syndicated loan agreement (“2017 Agreement”) of $3,000,000 with a syndicate of 13 banks led by Mega International Commercial Bank in November 2017. The term for syndicated loan transactions is four years from the first used date, the date of first drawdown was December 14, 2017.

To raise working capital, SinoPac Capital International Limited entered into a syndicated loan agreement (“2016 Agreement”) of US$240,000 thousand with a syndicate of 15 banks led by Mega International Commercial Bank in March 2016. The term of the syndicated loan transaction was three years from the date of first use of the loan; the date of first drawdown was July 28, 2016. SinoPac Capital International Limited has the option to apply for extension of the maturity date by one year, if there will be no case of breaching the contract. Therefore, SinoPac Capital International Limited entered into first supplement of the “2016 Agreement”, and extended the maturity date by one year to December 26, 2018 and matured on July 28, 2020.

To raise working capital, SinoPac Capital International (HK) Limited entered into a syndicated loan agreement (“2020 agreement”) of US$160,000 thousand with a syndicate of 10 banks led by Mega International Commercial Bank in December 2020. The term of the syndicated loan transaction is three years from the first used date, and the date of first drawdown was March 15, 2021.

According to the contract, the restriction conditions are as follows:

1) During the term of the Agreement, the Group should maintain following financial ratios:

a) Debt ratio: Ratio of liability to equity not more than 800%.

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b) Interest coverage ratio: Ratio of net income before interest expenses, taxation, depreciation and amortization to interest expenses not less than 110%.

2) The aforementioned financial ratios should be reviewed annually and determined based on SinoPac Leasing’s annual consolidated financial statements audited by independent auditors.

3) Failing to meet the financial covenants, a penalty of 0.125% annual interest rate (calculated daily and paid monthly based on the outstanding principal, for the period starting from October 1 subsequent to the year breach to the date that the financial ratios were improved) would be imposed. Furthermore, during the period that the covenants were breached and the Group drew the second line of credit, additional guarantee fee with an annual rate of 0.125% would be charged, and the guarantee fee previously paid was not refundable.

Assets mortgaged or pledged as collaterals for borrowings are shown in Note 46.

29. PROVISIONS

December 31, March 31, 2021 2020 March 31, 2020

Provision for employee benefits $ 3,077,821 $ 3,146,507 $ 2,914,659 Provision for financing commitment 199,214 217,077 239,320 Provision for guarantee liabilities 347,517 313,880 227,955 Provision for decommissioning liabilities 129,592 127,521 120,191 Other provision 23,688 15,420 15,848

$ 3,777,832 $ 3,820,405 $ 3,517,973

The Group’s movements of provision for financing commitment, provision for guarantee liabilities and other provisions were as follows:

For the Three Months Ended March 31, 2021 Provision for Provision for Financing Guarantee Commitment Liabilities Other Provision

Balance at January 1 $ 217,077 $ 313,880 $ 15,420 (Reversal of) provision (17,792) 33,671 8,276 Effect of exchange rate changes (71) (34) (8)

Balance at March 31 $ 199,214 $ 347,517 $ 23,688

For the Three Months Ended March 31, 2020 Provision for Provision for Financing Guarantee Commitment Liabilities Other Provision

Balance at January 1 $ 141,990 $ 206,051 $ 17,876 (Reversal of) provision 97,076 22,096 (1,891) Effect of exchange rate changes 254 (192) (137)

Balance at March 31 $ 239,320 $ 227,955 $ 15,848

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30. PROVISION FOR EMPLOYEE BENEFITS

December 31, March 31, 2021 2020 March 31, 2020

Recognized in the consolidated balance sheets (payables and provisions) Defined contribution plans $ 70,195 $ 68,729 $ 63,494 Defined benefit plans 2,751,306 2,818,117 2,610,113 Preferential interest on employees’ deposits 297,900 293,173 285,209 Deferred annual leave and retirement benefits 28,615 35,217 19,337

$ 3,148,016 $ 3,215,236 $ 2,978,153

The pension expenses related to defined benefit plans and preferential interest on employee’s deposits plan recognized according to the results of actuarial valuation on December 31, 2020 and 2019.

For the Three Months Ended March 31 2021 2020

Operating expenses $ 30,180 $ 36,503

31. OTHER FINANCIAL LIABILITIES

December 31, March 31, 2021 2020 March 31, 2020

Futures trader’s equity $ 26,642,106 $ 21,667,442 $ 18,204,382 Principal of structured products 10,630,835 15,386,334 33,684,051 Overseas certificate of deposit 733,945 735,219 - Equity for each customer in the account 380,855 483,505 273,420 Others 50,368 45,529 40,234

$ 38,438,109 $ 38,318,029 $ 52,202,087

32. OTHER LIABILITIES

December 31, March 31, 2021 2020 March 31, 2020

Guarantee deposits received $ 3,354,453 $ 5,594,673 $ 1,857,848 Securities lending refundable deposits 3,313,346 2,846,019 2,169,984 Receipts under custody 761,937 3,135,948 550,502 Temporary receipts and suspense accounts 591,960 687,266 711,609 Advance revenue 205,835 253,537 162,784 Deferred revenue 99,869 104,921 313,276 Others 42,954 44,614 31,577

$ 8,370,354 $ 12,666,978 $ 5,797,580

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33. INCOME TAX

Under Article 49 of the Financial Holding Company Act and related directives issued by the Ministry of Finance, a financial holding company and its domestic subsidiaries that hold over 90% of shares issued by the financial holding company for 12 months within the same tax year may choose to adopt the linked-tax system for income tax filings.

The Company has used the linked-tax system for income tax and unappropriated earnings tax filings with its qualified subsidiaries since 2003.

a. Income tax recognized in profit or loss

The major components of tax expense were as follows:

For the Three Months Ended March 31 2021 2020

Current tax Current period $ 624,068 $ 574,525 Prior periods 26,981 - 651,049 574,525 Deferred tax Temporary differences 171,683 (104,085)

Income tax expenses recognized in profit or loss $ 822,732 $ 470,440

Considering the uncertainty of earning distribution in the shareholder meeting, the consequence of the 5% income tax is currently undecided.

The ROC Income Tax Act was 20%. The rate of unappropriated earnings was 5%. Other jurisdictions are calculated based on the respective income tax rate.

b. Income tax recognized in other comprehensive income

For the Three Months Ended March 31 2021 2020 Deferred tax

Adjustments of current period Exchange difference on translation of foreign operations $ 18,552 $ 20,098 Unrealized gain or loss on financial assets at fair value through other comprehensive income 14,960 (61,839) Share of the other comprehensive income of associate 118 387

Income tax recognized in other comprehensive income $ 33,630 $ (41,354)

c. The income tax returns of SinoPac Securities through 2015 had been examined by the tax authorities, of which the 2012 to 2015 tax returns were disallowed items, such as the allocation principle of operating expenses and interest expenses as well as the amortization; therefore, the Corporation filed appeals for the authorities’ reconsideration of the assessments. Even if this matter was still unresolved, the Corporation accrued and paid $20,004 assessed by the tax authorities as additional income tax expenses.

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d. The income tax returns of SinoPac Futures through 2018 had been examined by the tax authorities, of which the 2016 tax returns were disallowed the treatment of amortization arising from the merger with Pacific Securities’ brokerage business. Consequently, SinoPac Futures filed appeals for the authorities’ reconsideration of the assessments. Even if this matter was still unresolved, SinoPac Futures accrued income tax expenses in advance.

e. SinoPac Call Center, SinoPac Life Insurance Agent Co., Ltd. and SinoPac Property Insurance Agent Co., Ltd. were merged into Bank SinoPac in 2019. The assessed years of profit-seeking enterprise income tax were as follows:

Examined Year

SinoPac Call Center 2015 SinoPac Life Insurance Agent A current final report on total business income from January 1 to July 31, 2019 SinoPac Property Insurance Agent A current final report on total business income from January 1 to July 31, 2019

f. The status of the subsidiaries’ examined income tax returns is as follows:

Examined Year

SPH 2015 Bank SinoPac 2015 SinoPac Venture Capital 2015 SinoPac Leasing 2015 SinoPac Securities Investment Trust 2015 SinoPac Securities Investment Service 2019

34. EQUITY

a. Capital stock

1) Common stock

The Company had an authorized capital of $120,000,000 divided into 12,000,000 thousand shares, with a par value of NT$10. The authorized capital can be issued in installments upon approval of the board of directors. Of the authorized capital, 500,000 thousand shares had been reserved for issuing stock option certificates, stock warrants associated with preferred stock and stock warrants associated with corporate bonds. The subscription shares issued on the exercise of employee stock options were subject to the regulations of the Securities and Futures Bureau.

On October 22, 2020, the Company obtained 2 shares from foreign shareholders and calculated by the closing price of acquisition date. The transaction was recognized as treasury stock and capital surplus-donated surplus. On October 26, 2020, the treasury stocks were disposed.

2) Preferred shares

To strengthen its financial structure, raise its capital adequacy ratio and increase its operating capital, the Company proposed the issuance of preferred Class A shares, with the effective date of May 15, 2009, at a price of NT$6.00 per share.

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Major terms and conditions of the preferred Class A shares are as follows: a) The current year’s earnings will be first used to cover losses of the past years as well as settle all taxes payable. The balance will then be used to appropriate legal reserve and special reserve and to reverse a special reserve in accordance with relevant laws and regulations and the corporate charter. The remainder will then be used to pay the accrued dividends of the past years and dividend of the current year. b) In the 15 years after the offering, dividends will be calculated at floating rates, using the annual deposit interest rates of Chunghwa Post Co., Ltd. for the period starting from the capital increase record date to the first anniversary of the offering plus 0.7%; from the 16th year and on, dividends will be calculated at the annual interest rates of Chunghwa Post Co., Ltd. at the anniversary of the offering, plus 1.5%. Dividend are payable in cash annually on the basis of the actual offering price. The date of dividend payment will be determined by the board after the shareholders’ meeting approves the Company’s audited operating results. The Board will then decide the record date for the payment of the previous year’s dividend. Dividends for the year of initial share offering and for the buyback year are calculated using the number of days the shares have been outstanding, and the dividend for the buyback year should be paid when a notice is served after the following year’s shareholders’ meeting. c) If no earnings are available, earnings are insufficient to fully pay dividends of preferred Class A stock, or the dividend payout will result in the consolidated capital adequacy ratio falling below the minimum amount set by laws and regulations or administrative bodies, the current year’s dividends should be accrued together with those of the past years and paid preferentially in the following surplus years. d) For the distribution of the Company’s residual assets, preference is given to preferred Class A shareholders instead of common shareholders and preferred Class B shareholders, with the amount not exceeding the offering amount and accrued dividends payable. e) Preferred Class A shareholders do not have voting rights in shareholders’ meetings but have the right to be elected as board directors. Nonetheless, preferred Class A shareholders are entitled to in the meetings of preferred Class A shareholders. f) Preferred Class A shareholders are not entitled to payouts from earnings as well as capital reserve meant for common stock, but they may receive dividends mentioned in paragraph (b) above. g) If new shares are issued, preferred Class A shareholders have the preferential right of subscription. h) Within three years of the preferred Class A stock offering, preferred Class A shareholders are entitled to convert all or part of their holdings into common stock on a one-for-one basis at any time, except when the registration of the conversion is suspended in accordance with relevant laws and regulations and when the offering falls within a period starting from the third business day after the date of the board of directors’ announcement of its decision on the ex-dividend dates for the stock dividends, cash dividends and rights issues - which involve the suspension of stock registration on certain dates - till the record dates on the above dividends and rights. After conversion, the rights of the holders of the converted shares become the same as those of the common stock.

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i) Preferred Class A shares are not entitled to preferred dividends of the current year and the following year’s dividend payout for the preferred stock if they had been converted into common stock before the record date (for common dividend distribution). In addition, if preferred stock dividends have already been paid in the year when preferred Class A shares have been converted to common stock, holders of the converted shares are not entitled to common dividends paid out in the year of the conversion. In the following years, accrued preferred dividends should be paid ahead of common dividends in the year and thereafter.

j) Preferred Class A stock has no maturity date. Within 15 years of share offering, all or part of the preferred Class A shares may be bought back at a price based on the offering price plus accrued dividends of the past years and on the basis of the number of days the shares have been outstanding in the current year. For this buyback, the Company will use the money raised through earnings generation, new share offerings or any other means as permitted by relevant laws and regulations. If the Company wants to buy back preferred Class A shares, a written notice should be given to the shareholders 30 days before the buyback. The right to convert the preferred shares into common stock within this period will not be affected by this notice.

There were 70,000 thousand preferred Class A shares. Under IAS 32 “Financial Instruments: Presentation”, the Company bifurcated the conversion rights embedded in the preferred Class A stock and the liability component, which amounted to $290,940, recorded as capital surplus - conversion rights, and $129,060, respectively. The related public issuance procedures had been completed, with the registration of these procedures approved by the Financial Supervisory Commission (FSC) under guidelines No. 1010058323. As of March 31, 2021, preferred Class A shares had been converted into 60,000 thousand common stock. b. Capital surplus

December 31, March 31, 2021 2020 March 31, 2020

Arising from issuance of common stock $ 2,080,001 $ 2,080,001 $ 2,080,001 Conversion rights 41,562 41,562 41,562 Employee share option - issuance of common stock 102,570 102,570 102,570 Others 4,631 4,631 4,631

$ 2,228,764 $ 2,228,764 $ 2,228,764

The premium from shares issued in excess of par (share premium from issuance of common stock, conversion of bonds and treasury stock transactions) and donations may be used to offset a deficit; in addition, when the Company has no deficit, the capital surplus may be distributed as cash dividends or transferred to capital (limited to a certain percentage of the Company’s paid-in capital and once a year).

In accordance with the Company Act, the amount recognized from changes in equity of local associates and joint venture accounted for using equity method can be used to cover accumulated deficits. Besides, the capital surplus from employee share options may not be used for any purpose due to its transitional nature.

The board of directors of SPH approved cash capital increase on July 25, 2014, and retained 10% of shares for employee share option. SPH recognized share-based capital surplus of $102,570 in the same year; the amount was calculated based on the fair value of the option on the delivery date.

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Under the Financial Holding Company Act and related directives of the Securities and Futures Bureau, if the capital surplus obtained by a financial holding company through a share swap comes from its subsidiaries’ unappropriated retained earnings after legal and special reserves, the surplus is exempted from the restriction stated in the Securities and Exchange Act (Ref No. 0910016280). This surplus was distributed together with 2004 earnings. c. Other equity items

Change in Fair Value of Unrealized Gain or Loss on Financial Exchange Financial Assets at Fair Value Liability Differences on Through Other Comprehensive Attributable to Translation of Income Change in Foreign Equity Debt Credit Risk of Operations Instrument Instrument Liability Total

Balance January 1, 2021 $ (1,593,696) $ 2,603,071 $ 3,438,742 $ (82,343) $ 4,365,774 Exchange differences Exchange differences on translation of foreign operations (93,139) - - - (93,139) Related income tax 18,552 - - - 18,552 Financial assets at fair value through other comprehensive income Current adjustment for change in value - 1,383,171 (2,554,821) - (1,171,650) Adjustment for loss allowance of debt instruments - - 3,780 - 3,780 Current disposal - - (271,431) - (271,431) Cumulative realized gain or loss transferred to retained earnings due to disposal - (511,584) - - (511,584) Related income tax - (2,551) 17,511 - 14,960 Share of the other comprehensive income of associates accounted for using equity method Current amounts (589) - - - (589) Related income tax 118 - - - 118 Change in fair value of financial liability attributable to change in credit risk of liability Change in amount - - - 3,051 3,051

Balance March 31, 2021 $ (1,668,754) $ 3,472,107 $ 633,781 $ (79,292) $ 2,357,842

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Change in Fair Value of Unrealized Gain or Loss on Financial Exchange Financial Assets at Fair Value Liability Differences on Through Other Comprehensive Attributable to Translation of Income Change in Foreign Equity Debt Credit Risk of Operations Instrument Instrument Liability Total

Balance January 1, 2020 $ (1,339,209) $ 1,469,896 $ 1,090,730 $ (68,042) $ 1,153,375 Exchange differences Exchange differences on translation of foreign operations (106,636) - - - (106,636) Related income tax 20,098 - - - 20,098 Financial assets at fair value through other comprehensive income Current adjustment for change in value - (2,801,273) (1,680,668) - (4,481,941) Adjustment for loss allowance of debt instruments - - 11,319 - 11,319 Current disposal - - (113,879) - (113,879) Cumulative realized gain or loss transferred to retained earnings due to disposal - 465,380 - - 465,380 Related income tax - 6,914 (68,753) - (61,839) Share of the other comprehensive income of associates accounted for using equity method Current amounts (1,936) - - - (1,936) Related income tax 387 - - - 387 Change in fair value of financial liability attributable to change in credit risk of liability Change in amount - - - (11,321) (11,321)

Balance March 31, 2020 $ (1,427,296) $ (859,083) $ (761,251) $ (79,363) $ (3,126,993) d. Earnings distribution and dividend policy

The Company’s Articles of Incorporation provide that annual net income should be appropriated after deducting any accumulated losses and taxes and providing legal and special reserves and reversing special reserve. The remaining earnings will be used to pay the accumulated and current year’s dividends of Class-A preferred shares, the board of directors will then prepare a proposal for approval at the shareholders’ meeting on the appropriation of the remaining earnings and the retained earnings from previous years.

When legal reserve reaches the full amount of the Company’s paid-in capital, legal reserve appropriation could be suspended.

Based on the Company’s operating plans, the dividend policy is to distribute most dividends in the form of stock to meet capital needs. The cash dividends will be declared only when there is an excess of cash and cash dividends should not be less than 10% of total dividends declared.

Cash dividends and cash bonuses are paid after the approval of the shareholders, while the distribution of stock dividends requires the additional approval of the authorities.

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Legal reserve should be appropriated until it has reached the amount of the Company’s paid-in capital. This reserve may be used to offset a deficit. When the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to capital or distributed in cash.

The Company appropriates or reverses a special reserve in accordance with Rule No. 1010012865 and the directive entitled “Questions and Answers on Special Reserves Appropriated Following the Adoption of IFRSs”. Distributions can be made out of any subsequent reversal of the debit to other equity items.

The appropriation of earnings for 2019 had been approved in the shareholder’s meetings on May 13, 2020. The appropriation and dividends per share are as follows:

Appropriation Dividends Per of Earnings Share (NT$)

Legal reserve $ 1,219,387 Reversal of special reserve (365,544) Cash dividends 7,889,738 $0.7

The shareholders’ meeting has established that in future cases of a share buyback, conversion of preferred shares into common stock or other situations that lead to changes in the numbers of shares outstanding or shareholders waive the right to dividends, the board of directors has the authority to make adjustments.

The shareholders’ meeting approved the 2020 appropriations of earnings and dividends per share on March 19, 2021 as follows:

Appropriation Dividends Per of Earnings Share (NT$)

Legal reserve $ 1,218,469 Cash dividends 7,889,738 $0.7

The appropriations of earnings for 2021 is subject to the resolution of the shareholders’ meeting in 2020.

35. NET INTEREST REVENUE

For the Three Months Ended March 31 2021 2020

Interest income Discounts and loans $ 5,219,489 $ 5,821,510 Investment securities interest 1,490,653 1,481,391 Financing 368,675 320,941 Due from the Central Bank and other banks 141,232 417,008 Credit card revolving interest rate income 131,217 145,513 Deposits 51,297 93,879 Securities purchased under resell agreements 39,345 96,747 Others 110,414 149,325 7,552,322 8,526,314 (Continued)

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For the Three Months Ended March 31 2021 2020

Interest expenses Deposits $ (1,734,282) $ (3,274,054) Bank debentures (196,546) (177,534) Call loans from banks (107,408) (195,623) Borrowing (114,866) (118,037) Interest expense of structured products (82,491) (184,758) Securities sold under repurchase agreements (43,994) (156,723) Others (43,968) (90,191) (2,323,555) (4,196,920)

$ 5,228,767 $ 4,329,394 (Concluded)

36. SERVICE FEE AND COMMISSIONS INCOME, NET

For the Three Months Ended March 31 2021 2020

Commissions and fee revenue Brokerage services $ 2,402,862 $ 1,593,248 Trust and related services 1,041,880 782,144 Insurance services 1,037,525 1,103,910 Loan services 481,167 409,444 Credit card services 168,248 300,295 Others 368,472 278,012 5,500,154 4,467,053 Commissions and fee expenses Brokerage services (187,145) (127,106) Credit card services (140,588) (139,316) Interbank services (65,665) (48,566) Trust services (51,034) (53,021) Settlement and delivery services (38,419) (34,711) Futures commission (29,147) (40,869) Others (87,773) (95,334) (599,771) (538,923)

Net amount $ 4,900,383 $ 3,928,130

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37. GAINS ON FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS, NET

For the Three Months Ended March 31 2021 2020

Disposal gain (loss) on financial assets and liabilities at fair value through profit or loss Operating securities - dealing $ 723,947 $ 611,775 Operating securities - hedging 176,635 (356,820) Stocks 68,530 43,010 Government bonds (63,373) 305,676 Interest rate swap contracts 752,946 (789,633) Issuance of call (put) warrants (73,434) 494,112 Currency swap contracts and hybrid FX swap structured instruments (176,905) 968,463 Asset swap contracts (324,786) (5,396) Futures contracts (351,587) (535,534) Others 160,888 (66,324) 892,861 669,329 Unrealized gain (loss) on financial assets and liabilities at fair value through profit or loss Stocks 136,386 (448,108) Operating securities - dealing 27,005 (613,652) Government bonds (145,865) 94,240 Currency swap contracts and hybrid FX swap structured instruments 14,095 (613,489) Asset swap contracts (39,708) 259,556 Issuance of call (put) warrants (58,972) (267,894) Option contracts (62,415) (1,056,960) Interest rate swap contracts (428,645) 1,818,928 Others 228,989 (193,336) (329,130) (1,020,715) Dividend revenues 5,339 10,715 Interest income 153,246 212,554

$ 722,316 $ (128,117)

Financial assets designated as at fair value through profit or loss and its derivatives changes in the fair value recognized as financial assets at fair value through profit or loss.

38. REALIZED GAINS ON FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

For the Three Months Ended March 31 2021 2020

Dividend revenue Held at the end of the reporting period $ 43,073 $ 47,857 Gain or loss from disposal of debt instruments 271,431 113,879

$ 314,504 $ 161,736

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39. IMPAIRMENT LOSS ON ASSETS

For the Three Months Ended March 31 2021 2020

Impairment loss on other financial assets $ (9,286) $ (41,373) Others (3,744) (12,175)

$ (13,030) $ (53,548)

40. NET OTHER REVENUE OTHER THAN INTEREST INCOME

For the Three Months Ended March 31 2021 2020

Securities lending $ 55,640 $ 43,149 Operating assets rental income 46,484 32,452 Stock affairs agent revenue 24,228 23,554 Rental income 14,085 14,767 Transaction bonus 13,820 12,544 Insurance claims 348 29,605 Expense arising from issuance of call (put) warrants (45,201) (36,434) Others 48,779 92,865

$ 158,183 $ 212,502

41. EMPLOYEE BENEFITS EXPENSES

For the Three Months Ended March 31 2021 2020

Salaries and wages $ 3,611,516 $ 2,893,162 Labor insurance and national health insurance 244,625 213,917 Pension costs 124,413 121,430 Cash-settled share-based payment transaction 760 - Others 231,126 206,023

$ 4,212,440 $ 3,434,532

The Company’s Articles of Incorporation provide that the Company shall allocate from annual profit more than 0.01% as employees’ compensation and not more than 1% as remuneration of directors.

For the three months ended March 31, 2021 and 2020, the compensation was $443 and $236, respectively and the remuneration of directors was $11,954 and $7,066, respectively. These amounts were estimated on the basis of the provisions of the Company’s Articles of Incorporation and past experience.

If there is a change in the proposed amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in accounting estimate.

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The board of directors approved $1,500 as employees’ compensation and $28,344 as remuneration of directors on January 29, 2021 and February 26, 2021, respectively. These amounts were the same as those recognized in the financial statements and will be delivered entirely in cash.

The board of directors approved $1,500 as employees’ compensation and $33,000 as remuneration of directors on January 17, 2020 and February 25, 2020, respectively. These amounts were the same as those recognized in the financial statements and will be delivered entirely in cash. The approval has been reported in the shareholders’ meeting on May 13, 2020.

The information on the proposed and approved compensations to employees and directors is available at the Market Observation Post System (M.O.P.S.) website of the Taiwan Stock Exchange.

For short-term and long-term compensation, the Company has sets up a long-term incentive compensation plan, which defers the delivery of performance bonus to the Group’s high level managers, and links the stock price of the Company with the long term performance index. The Group expects to use virtual stocks and future stock price to calculate the compensation and deliver in cash. The Group recognizes the compensation as cash-settled share-based employee benefits expense.

42. DEPRECIATION AND AMORTIZATION EXPENSE

For the Three Months Ended March 31 2021 2020

Depreciation expense Land improvements $ 76 $ 250 Buildings 50,181 49,066 Machinery and computer equipment 89,981 69,370 Transportation equipment 30,257 19,389 Other equipment 26,718 23,815 Leasehold improvements 23,425 29,017 Right-of-use assets 227,977 218,906 448,615 409,813 Amortization expense 87,345 81,499

$ 535,960 $ 491,312

43. OTHER GENERAL AND ADMINISTRATIVE EXPENSES

For the Three Months Ended March 31 2021 2020

Taxation and fees $ 383,490 $ 373,898 Automated equipment 231,298 218,385 Professional advisory 127,542 124,557 Location fee 106,693 105,986 Marketing 95,485 173,630 Insurance 93,861 79,498 Communications expense 93,276 87,971 Others 258,694 252,331

$ 1,390,339 $ 1,416,256

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44. EARNINGS PER SHARE

Basic earnings per share are calculated by dividing net income by the weighted-average number of common stock outstanding.

In the calculation of diluted earnings per share, the preferred shares, which have a dilutive effect, are included in the weighted-average number of common stock outstanding by which net income will be divided. The Company has preferred stocks which are potential dilutive common stock.

Dollars Per Share

For the Three Months Ended March 31 2021 2020

Basic EPS $ 0.39 $ 0.21 Diluted EPS $ 0.39 $ 0.21

The weighted-average number of common stock outstanding in the computation of EPS are as follow:

Net Income

For the Three Months Ended March 31 2021 2020

Net income for calculating basic EPS $ 4,411,003 $ 2,354,354 Effect of potentially dilutive common stock: Preferred shares 219 260 Employee stock bonus - -

Net income for calculating diluted EPS $ 4,411,222 $ 2,354,614

Shares

Shares in Thousands

For the Three Months Ended March 31 2021 2020

The weighted-average number of common stock outstanding in computation of basic EPS 11,271,054 11,271,054 Effect of potentially dilutive common stock: Preferred shares 10,000 10,000 Employee stock bonus 77 41

The weighted-average number of common stock outstanding in computation of diluted EPS 11,281,131 11,281,095

If the Group decides to give an employee bonus in the form of cash or shares, the Group should presume that the entire amount of the bonus will be in the form of shares and if the resulting potential shares have a dilutive effect, these shares should be included in the weighted-average number of shares outstanding to be used in the calculation of diluted earnings per share. The dilutive effect of the potential shares should be included in the computation of diluted earnings per share until the board of directors resolve at their meeting in the following year the number of shares to be distributed to employees.

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45. RELATED-PARTY TRANSACTIONS

In addition to those disclosed in other notes to the financial statements, relationships with the Group and significant transactions, as well as the subsidiaries’ related-party transactions, are summarized as follows:

a. Related parties and their relationships with the Group

Related Party Relationship with the Group

Nuvoton Technology Corp. (Nuvoton Technology) Affiliate of the Company chairman’s spouse Taiwan Stock Exchange (TWSE) Affiliate of the Company’s general manager Shin Yuan Investment Co., Ltd. (Shin Yuan Affiliate of the Company’s corporate director Investment) Sun He Energy Co., Ltd. (Sun He Energy) Corporate director of SinoPac Venture Capital Hsin Yi Recreation Enterprise Co., Ltd. (Hsin Yi Affiliate of the Company’s corporate director Recreation) Yuen Foong Paper Co., Ltd. (Yuen Foong Paper) Affiliate of the Company’s corporate director Asia Cement Corporation (Asia Cement) Affiliate of the Company’s director Quanta Computer Co., Ltd. (Quanta Computer) Affiliate of the Company’s director Pegatron Corporation (Pegatron) Affiliate of the Company’s director Foundation of Private School Affiliate of the Company’s director Chunghwa Telecom Co., Ltd. (Chunghwa Telecom) Affiliate of Bank SinoPac’s director Taiwan Riken Industrial CO., LTD. (Taiwan Riken Affiliate of SinoPac Securities’ director Industrial) Tatung Company Affiliate of SPL’s director Centera Photonics Inc. (Centera Photonics) Affiliate of SinoPac Venture Capital’s director Hua Nan Commercial Bank, Ltd. (Hua Nan Bank) Affiliate of SPL director’s spouse Boardtek Electronics Corporation (Boardtek Affiliate of the Company’s manager Electronics) Hotai Investment Limited (Hotai Investment) Affiliate of Bank SinoPac’s manager Taiwan Securities Association Affiliate of the SinoPac Securities’ manager Grand Bills Finance Corp. (Grand Bills Finance) Affiliate of the Company’s manager’s spouse Tsann Kuen Enterprise Co., Ltd. (Tsann Kuen Affiliate of Bank SinoPac’s manager’s spouse Enterprise) Evercast Precision Industry Corporation (Evercast Affiliate of first-degree kin of Bank SinoPac’s Precision) manager Kim Great Co., Ltd. (Kim Great) Affiliate of second-degree kin of Bank SinoPac’s manager Hao-Xin-Di Co., Ltd. (Hao-Xin-Di) Affiliate of second-degree kin of Bank SinoPac’s manager Shyang Yih Logistics Co., Ltd. (Shyang Yih Logistics) Affiliate of third-degree kin of Bank SinoPac’s manager (before June 2020) Hao Yu Co., Ltd. (Hao Yu) Affiliate of second-degree-in-laws of Bank SinoPac’s manager Chen Shih Automation Industrial Co., Ltd. (Chen Shih Affiliate of second-degree-in-laws of Bank Automation Industrial) SinoPac’s manager Greatwell Enterprise Co., Ltd. (Greatwell Enterprise) Affiliate of second-degree in-laws of Bank SinoPac’s manager (before March 2021) SinoPac Securities Investment Trust Funds Related party Taigen Biopharmaceuticals Holdings Limited (Taigen Related party Biopharmaceuticals) (Continued)

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Related Party Relationship with the Group

YFY International BVI Corp. (YFY International) Related party YFY Cayman Co., Ltd. (YFY Cayman) Related party Elite Material Co., Ltd. (Elite Material) Related party YFY Packaging (YangZhou) Investment Ltd. (YFY Related party Packaging (YangZhou)) Universal Cement Corporation (Universal Cement) Related party Hoss Venture Inc. (Hoss Venture) Related party Foundation of SinoPac (In progress) Related party Shin Foong Specialty And Applied Materials Co., Ltd. Related party (Shin Foong Specialty And Applied Materials) E Ink Holdings Inc. (E Ink Holdings) Related party Hsin-Yi Foundation Related party Foundation of Fire Fighting Development Related party YFY Investment Ltd. (YFY Investment) Related party YuanHan Material Inc. (YuanHan Material) Related party Tech Smart Logistics Ltd. Related party Dream Universe Limited Related party China Color Printing Co., Ltd. (China Color Printing) Related party PVI Global Corporation Related party YFY Biotech Management Co., Ltd. (YFY Biotech Related party Management) Effion Enertech Co., Ltd. (Effion Enertech) Related party Yong Hsin Yi Enterprise Co., Ltd. (Yong Hsin Yi Related party Enterprise) Willpower Industries Limited Related party Hoss Capital Inc. (Hoss Capital) Related party Hydis Technologies Co., Ltd. Related party New Field E-Paper Co., Ltd. (New Field E-Paper) Related party Transcend Optronics (YangZhou) Co., Ltd. (Transcend Related party Optronics (YangZhou)) TransYork Technology (YangZhou) Ltd. (TransYork Related party Technology (YangZhou)) Foongtone technology Co., Ltd. (Foongtone Related party technology) Taigen Biotechnology Co., Ltd. (Taigen Related party Biotechnology) Rich Optronics (YangZhou) Co., Ltd. (Rich Optronics Related party (YangZhou)) Sino Cell Technologies Ltd. (Sino Cell Technologies) Related party Shen’s Art Printing Co., Ltd. (Shen’s Art Printing) Related party SinoPac Multi Strategy Quant Fund Limited Related party SinoPac Multi-Series Fund II Limited Related party SinoPac Multi-Series Fund SPC Related party SinoPac Structured Funds SPC Related party Accudo Asia Value Arbitrage Fund Related party Others The Group’s directors, supervisors, managers and their relatives, department chiefs, investments accounted for using equity method and their subsidiaries, and investees of the Company’s other subsidiaries, etc. (Concluded)

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b. Significant transactions with related parties

1) Cash and cash equivalents

December 31, March 31, 2021 2020 March 31, 2020

SinoPac Securities and its subsidiaries Bank deposits Others $ 2,341 $ 2,293 $ - SinoPac Venture Capital and its subsidiaries Bank deposits Hua Nan Bank 40,315 40,298 176,185

2) Due from the Central Bank and call loans to banks

For the Three Months Ended March 31, 2021 March 31, 2021 Ending Interest Rate Interest Balance (%) Revenue

Bank SinoPac and its subsidiaries Call loans to banks Hua Nan Bank $ - 0.51-2 $ 1,198

December 31, 2020 Ending Interest Rate Balance (%)

Bank SinoPac and its subsidiaries Call loans to banks Hua Nan Bank $ 997,793 0.05-2.37 Grand Bills Finance - 0.45

For the Three Months Ended March 31, 2020 March 31, 2020 Ending Interest Rate Interest Balance (%) Revenue

Bank SinoPac and its subsidiaries Call loans to banks Hua Nan Bank $ 1,211,200 0.80-2.37 $ 3,960 Grand Bills Finance 260,000 0.45 26

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3) Financial assets at fair value through profit or loss

December 31, March 31, 2021 2020 March 31, 2020

SinoPac Securities and its subsidiaries SinoPac Securities Investment Trust Funds $ 181,804 $ 189,161 $ 147,490 Funds managed by SinoPac Asset Management (Asia) 84,039 142,584 102,625 Asia Cement - 100,025 35 Others 52,883 71,848 20,666 SinoPac Securities Investment Trust SinoPac Securities Investment Trust Funds 513 579 116,386 SinoPac Venture Capital and its subsidiaries Taigen Biopharmaceuticals 532,923 484,286 295,908 Centera Photonics 104,129 104,129 103,191 Others 269,667 262,116 274,126

4) Derivative financial instruments

March 31, 2021 Contract (Notional) Contract Valuation Amount Period Gains or Losses Account Balance

Bank SinoPac and its subsidiaries Interest rate swap contracts Hua Nan Bank $ 5,546,579 2020.9.8- $ 21,220 Financial assets at fair value $ 36,382 2031.3.12 through profit or loss Hua Nan Bank 500,000 2020.4.13- 249 Financial liabilities at fair 410 2030.4.15 value through profit or loss Forward contracts YFY International 1,569,296 2020.10.16- (5,549 ) Financial assets at fair value 26,265 2021.6.4 through profit or loss SinoPac Securities and its subsidiaries Asset exchange option Grand Bills Finance 253,400 2018.12.3- 1,535 Financial assets at fair value 19,490 2023.9.8 through profit or loss

December 31, 2020 Contract (Notional) Contract Amount Period Account Balance

Bank SinoPac and its subsidiaries Interest rate swap contracts Hua Nan Bank $ 3,546,579 2020.9.8- Financial assets at fair value $ 15,162 2030.11.20 through profit or loss Hua Nan Bank 1,000,000 2020.4.13- Financial liabilities at fair 1,266 2030.7.9 value through profit or loss (Continued)

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December 31, 2020 Contract (Notional) Contract Amount Period Account Balance

Forward contracts YFY International $ 2,138,128 2020.10.16- Financial assets at fair value $ 46,999 2021.6.4 through profit or loss Tatung Company 28,028 2020.9.17- Financial liabilities at fair 1,030 2021.1.27 value through profit or loss SinoPac Securities and its subsidiaries Asset exchange option Grand Bills 344,300 2018.12.3- Financial assets at fair value 17,955 Finance 2023.10.30 through profit or loss (Concluded)

March 31, 2020 Contract (Notional) Contract Valuation Amount Period Gains or Losses Account Balance

Bank SinoPac and its subsidiaries Forward contracts YFY International $ 1,968,199 2020.1.7- $ (27,788 ) Financial liabilities at fair $ 27,788 2020.5.26 value through profit or loss YFY Cayman 908,400 2020.2.5- (10,850 ) Financial liabilities at fair 10,850 2020.5.12 value through profit or loss Boardtek Electronics 60,560 2020.2.4- 152 Financial assets at fair value 152 2020.4.13 through profit or loss SinoPac Securities and its subsidiaries Asset exchange option Grand Bills 364,100 2018.11.13- (22,868 ) Financial liabilities at fair 22,868 Finance 2022.12.20 value through profit or loss

5) Financial assets at fair value through other comprehensive income

December 31, March 31, 2021 2020 March 31, 2020

Bank SinoPac and its subsidiaries Equity instruments Quanta Computer $ 322,420 $ 266,161 $ - Others 19,727 16,055 17,775 Debt instruments Hua Nan Bank - 4,998,609 1,000 SinoPac Securities and its subsidiaries Equity instruments TWSE 357,495 340,173 146,424 Elite Material 101,400 94,200 - Pegatron 7,410 6,730 282,286 Others 9,800 8,090 93,909 SinoPac Venture Capital and its subsidiaries Equity instruments Others 123,353 116,979 51,815

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6) Securities purchased under resell agreements

For the Three Months Ended March 31, 2021 March 31, 2021 Carrying Interest Face Amount Amount Revenue

SinoPac Securities and its subsidiaries Grand Bills Finance $ 798,914 $ 816,305 $ 10,777 Others 372,505 245,579 929

December 31, 2020 Carrying Face Amount Amount

SinoPac Securities and its subsidiaries Grand Bills Finance $ 798,234 $ 837,073 Others 374,498 260,367

For the Three Months Ended March 31, 2020 March 31, 2020 Carrying Interest Face Amount Amount Revenue

SinoPac Securities and its subsidiaries Grand Bills Finance $ 1,786,519 $ 1,467,974 $ 10,777 Others 497,582 413,726 697

7) Receivables

December 31, March 31, 2021 2020 March 31, 2020

Bank SinoPac and its subsidiaries YFY Packaging (YangZhou) $ - $ 72,945 $ 266,298 Others 1 1,309 3,216 SinoPac Securities and its subsidiaries Others 19,358 94,020 19,562 SinoPac Securities Investment Trust Others 14,265 14,417 16,185 SinoPac Venture Capital and its subsidiaries Others 4 3 59 SinoPac Leasing and its subsidiaries Others 134 240 547

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8) Loans

For the Three Months Ended March 31, 2021 Ending Highest Interest/ Interest Balance Balance Fee Rates (%) Revenue

Loans $ 8,995,037 $ 9,417,412 0-6.53 $ 27,776

March 31, 2021 Is the Transaction Account Volume Category Highest Ending at Arm’s or Name of Normal Overdue Type of Collaterals Balance Balance Length Related Party Commercial Term Employees’ 292 $ 502,663 $ 490,199 V - None Yes consumer loans Household mortgage 1,075 5,908,690 5,763,684 V - Real estate Yes loans Others: Evercast Precision 49,674 44,126 V - Real estate Yes Kim Great 46,474 45,749 V - Real estate Yes Hao Yu 11,600 - V - Real estate Yes Hao-Xin-Di 8,542 8,330 V - Real estate Yes Hotai Investment 3,231 3,025 V - Vehicle Yes Others 2,886,538 2,639,924 V - Real estate, certificates Yes of deposits, securities and vehicle Others subtotal 3,006,059 2,741,154 Total $ 9,417,412 $ 8,995,037

For the Year Ended December 31, 2020 Ending Interest/ Balance Highest Balance Fee Rates (%)

Loans $ 9,836,061 $ 16,196,227 0-10.24

December 31, 2020 Is the Transaction Account Volume Category Highest Ending at Arm’s or Name of Normal Overdue Type of Collaterals Balance Balance Length Related Party Commercial Term Employees’ 296 $ 515,494 $ 469,781 V - None Yes consumer loans Household mortgage 1,078 6,101,734 5,718,414 V - Real estate Yes loans Others: Quanta Computer 5,117,318 - V - None, Note 1 Yes Boardtek 900,000 900,000 V - Real estate Yes Electronics Universal Cement 200,000 - V - None, Note 1 Yes Evercast Precision 51,838 49,674 V - Real estate Yes Kim Great 48,661 46,474 V - Real estate Yes Hoss Venture 30,000 - V - Real estate Yes Hao Yu 16,400 11,600 V - Real estate Yes Chen Shih 15,000 15,000 V - Real estate Yes Automation Industrial Hao-Xin-Di 9,381 8,542 V - Real estate Yes Greatwell 8,200 8,200 V - Real estate Yes Enterprise Hotai Investment 3,300 3,231 V - Vehicle Yes Others 3,178,901 2,605,145 V - Real estate, certificates Yes of deposits and vehicle Others subtotal 9,578,999 3,647,866 Total 16,196,227 9,836,061

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For the Three Months Ended March 31, 2020 Ending Highest Interest/ Interest Balance Balance Fee Rates (%) Revenue

Loans $ 8,873,253 $ 9,282,537 0-8.66 $ 33,898

March 31, 2020 Is the Transaction Account Volume Category Highest Ending at Arm’s or Name of Normal Overdue Type of Collaterals Balance Balance Length Related Party Commercial Term Employees’ consumer 308 $ 489,220 $ 475,514 V - None Yes loans Household mortgage 1,025 5,279,623 5,151,298 V - Real estate Yes loans Others: Boardtek 800,000 800,000 V - Real estate Yes Electronics Evercast Precision 51,838 51,302 V - Real estate Yes Hoss Venture 30,000 30,000 V - Real estate Yes Kim Great 17,272 16,901 V - Real estate Yes Hao Yu 16,400 15,200 V - Real estate Yes Hao-Xin-Di 9,381 9,174 V - Real estate Yes Greatwell 8,200 8,200 V - Real estate Yes Enterprise Shyang Yih 38 - V - Vehicle Yes Logistics Others 2,580,565 2,315,664 V - Real estate, Yes certificates of deposits and vehicle Others subtotal 3,513,694 3,246,441 Total $ 9,282,537 $ 8,873,253

Note 1: Non-related party of Bank SinoPac at the loan signing date.

Note 2: Debtors of related party loans are all within normal credit ranking. The Group estimated provision for doubtful debt periodically in accordance with the guidelines issued by the authority and IFRSs.

9) Guarantees

March 31, 2021

None.

December 31, 2020

Highest Ending Related Party Provision Rates Type of Collaterals Note Balance Balance Tsann Kuen Enterprise $ 8,000 $ 8,000 $ - 0.50% None, Note Others 2 - - 1.75% None, Note

March 31, 2020

Highest Ending Related Party Provision Rates Type of Collaterals Note Balance Balance Tsann Kuen Enterprise $ 8,000 $ 8,000 $ - 0.50% None, Note Others 2 - - 1.75% None, Note

Note: Non-related party of Bank SinoPac at the loan signing date.

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10) Property and equipment

In the three months ended March 31, 2020, the Company purchased property and equipment from its related parties for a total price of $3,580, and recognized as machinery and computer equipment. (In the three months ended March 31, 2021: None)

In the three months ended March 31, 2021 and 2020, Bank SinoPac and its subsidiaries purchased property and equipment from its related parties for a total price of $4,614 and $8,349, respectively, recognized as machinery and computer equipment and prepayments for equipment.

11) Intangible assets

In the three months ended March 31, 2021 and 2020, Bank SinoPac purchased computer software from its related parties for a total price of $570 and $3,086, respectively, recognized as intangible assets.

In the three months ended March 31, 2021, SinoPac Securities and its subsidiaries purchased computer software from its related parties for a total price of $310, recognized as intangible assets. (In the three months ended March 31, 2020: None)

In the three months ended March 31, 2020, SinoPac Securities Investment Trust purchased computer software from its related parties for a total price of $238, recognized as intangible assets. (In the three months ended March 31, 2021: None)

12) Other assets

December 31, March 31, 2021 2020 March 31, 2020

Bank SinoPac and its subsidiaries Prepayments Others $ 28 $ 29 $ 4 Guarantee deposits Others 1,457 1,456 1,486 SinoPac Securities and its subsidiaries Securities borrowing margins TWSE 154,000 354,000 1,679,000 Clearing and settlement fund Others 99,422 94,866 94,866 Guarantee deposits Others 2,640 2,640 2,638 Prepayments Others 2,551 3,119 12 SinoPac Securities Investment Trust Guarantee deposits Others 11 11 11 SinoPac Leasing and its subsidiaries Guarantee deposits Others 623 621 613 Prepayments Others 37 39 120

Bank SinoPac and its subsidiaries signed an agreement with other related parties for the purchase. Bank SinoPac and its subsidiaries paid $10,806 and $7,493 for the three months ended March 31, 2021 and 2020, respectively, which were recognized as prepayments (other assets) or operating expenses.

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On March 31, 2021, December 31, 2020 and March 31, 2020, undiscounted guarantee deposits paid on lease contracts of Bank SinoPac and its subsidiaries were $780.

On March 31, 2021, December 31, 2020 and March 31, 2020, undiscounted guarantee deposits paid on lease contracts of SinoPac Securities and its subsidiaries were $158.

On March 31, 2021, December 31, 2020 and March 31, 2020, undiscounted guarantee deposits paid on lease contracts of SPL and its subsidiaries were $624.

13) Notes and bonds transaction

For the Three Months Ended March 31, 2021 Purchase of Notes and Sell of Notes Bonds and Bonds

Bank SinoPac and its subsidiaries Hua Nan Bank $ - $ 5,003,395 SinoPac Securities and its subsidiaries Hua Nan Bank 1,548,572 1,200,000 Grand Bills Finance 419,843 1,450,000 Others 211 -

For the Three Months Ended March 31, 2020 Purchase of Notes and Sell of Notes Bonds and Bonds

SinoPac Securities and its subsidiaries Others $ 44,110 $ 168,725

14) Deposits from the Central Bank and banks

For the Three Months Ended March 31, 2021 March 31, 2021 Ending Interest Rate Interest Balance (%) Expense

Bank SinoPac and its subsidiaries Hua Nan Bank $ - 0.1-0.4 $ 192

December 31, 2020 Ending Interest Rate Balance (%)

Bank SinoPac and its subsidiaries Hua Nan Bank $ 1,282,877 0.08-12.00

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For the Three Months Ended March 31, 2019 March 31, 2019 Ending Interest Rate Interest Balance (%) Expense

Bank SinoPac and its subsidiaries Others $ 302,800 0.70-3.00 $ 431

15) Securities sold under repurchase agreements

For the Three Months Ended March 31, 2021 March 31, 2021 Carrying Interest Face Amount Amount Expense

SinoPac Securities and its subsidiaries Others $ 81,314 $ 72,721 $ 613

December 31, 2020 Carrying Face Amount Amount

SinoPac Securities and its subsidiaries Others $ 72,323 73,104

For the Three Months Ended March 31, 2020 March 31, 2020 Carrying Interest Face Amount Amount Expense

SinoPac Securities and its subsidiaries SinoPac Securities Investment Trust Funds $ 231,077 $ 231,421 $ 413

16) Commercial papers payable

For the Three Months Ended March 31, 2021 March 31, 2021 Interest Rate Interest Face Amount (%) Expense

The Company Grand Bills Finance $ 700,000 0.7530-0.7563 $ 1,296 SinoPac Securities and its subsidiaries Grand Bills Finance 2,150,000 0.22-0.28 1,489 Hua Nan Bank 800,000 0.20 651 SinoPac Leasing and its subsidiaries Others - 1.0000 245

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December 31, 2020 Interest Rate Face Amount (%)

The Company Grand Bills Finance $ 700,000 0.663-0.864 SinoPac Securities and its subsidiaries Grand Bills Finance 1,350,000 0.28-0.29 Hua Nan Bank 300,000 0.20-0.21 SinoPac Leasing and its subsidiaries Grand Bills Finance 150,000 1.0000-1.7607

For the Three Months Ended March 31, 2020 March 31, 2020 Interest Rate Interest Face Amount (%) Expense

The Company Grand Bills Finance $ 1,600,000 0.663-0.864 $ 970 SinoPac Leasing and its subsidiaries Grand Bills Finance 275,000 1.0780-1.7607 294

17) Payables

December 31, March 31, 2021 2020 March 31, 2020

Bank SinoPac and its subsidiaries YFY Packaging (YangZhou) $ - $ 72,945 $ 266,298 Others 6,283 7,186 21,026 SinoPac Securities and its subsidiaries Others 38,937 35,110 24,340 SinoPac Leasing and its subsidiaries Others 28 25 27

18) Deposits

For the Three Months Ended March 31, 2021 March 31, 2021 Ending Interest Rate Interest Balance (%) Expense

Others $ 59,672,449 0-24 (Note) $ 68,397

December 31, 2020 Ending Interest Rate Balance (%)

Others $ 50,154,663 0-13

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For the Three Months Ended March 31, 2020 March 31, 2020 Ending Interest Rate Interest Balance (%) Expense

Others $ 24,815,213 0-13 $ 82,376

Note: The preferential savings rates included in the interest rates of insurance products and those transactions are at arm’s length with unrelated parties.

Deposit details of related-party whose amounts are over $100,000 with Bank SinoPac and its subsidiaries, please refer to Note 45, c.11.

19) Bond payable

Except that the related parties bought bank debentures issued by Bank SinoPac from market, third subordinated bank debentures issued in 2015 by Bank SinoPac were subscribed by related parties for a total amount of $620,000, as of the last interest payment date, on March 31, 2020.

20) Short-term borrowings

December 31, March 31, 2021 2020 March 31, 2020

SinoPac Leasing and its subsidiaries Hua Nan Bank $ 20,000 $ - $ 137,842

21) Other financial liabilities

December 31, March 31, 2021 2020 March 31, 2020

SinoPac Securities and its subsidiaries Futures traders’ equity SinoPac Securities Investment Trust Funds $ 91,750 $ 104,939 $ 539,102 Others 1,749 1,273 1,634

22) Lease

December 31, March 31, 2021 2020 March 31, 2020

Bank SinoPac and its subsidiaries as a lessee Right-of-use assets, net Chunghwa Telecom $ 141,683 $ 152,868 $ 186,425 Others 15,973 16,814 2,681 Lease liabilities Chunghwa Telecom 142,978 154,074 187,197 Others 15,961 16,785 2,693 (Continued)

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December 31, March 31, 2021 2020 March 31, 2020

SinoPac Securities and its subsidiaries as a lessee Right-of-use assets, net Others $ 1,092 $ 1,326 $ 2,028 Lease liabilities Others 1,101 1,336 2,037 SinoPac Leasing and its subsidiaries as a lessee Right-of-use assets, net Others 13,473 14,372 17,066 Lease liabilities Others 13,610 14,488 17,101 (Concluded)

For the guarantee deposits on lease contracts with related parties, refer to Note 45,b. 12.

For lease revenue, guarantee deposits, lease interest expense, lease depreciation expense and other lease expense (recognized as operating expenses) on the lease contracts with related parties for the years ended December 31, 2021 and 2020, refer to Note 45,b. 24, 25 and 29.

23) Other liabilities

December 31, March 31, 2021 2020 March 31, 2020

Bank SinoPac and its subsidiaries Guarantee deposits received Others $ 1,515 $ 1,519 $ 1,517 Advance receipts Others - 47 45 SinoPac Securities Investment Trust Deferred revenue Others - 3,168 13,911

24) Interest income

For the Three Months Ended March 31 2021 2020

Bank SinoPac and its subsidiaries Others $ 78 $ 1 SinoPac Securities and its subsidiaries Others 18 551 SinoPac Venture Capital and its subsidiaries Others 17 92 SinoPac Leasing and its subsidiaries Others 5 11

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25) Interest expenses

For the Three Months Ended March 31 2021 2020

Bank SinoPac and its subsidiaries Others $ 7,980 $ 5 SinoPac Securities and its subsidiaries Others 2 4 SinoPac Leasing and its subsidiaries Others 86 1,323

26) Service fee and commissions income, net

For the Three Months Ended March 31 2020 2019

Bank SinoPac and its subsidiaries Fee revenues Others $ 2,388 $ 1,476 Fee expenses Others 1,869 2,995 SinoPac Securities and its subsidiaries Fee revenues Others 10,653 41,906 Fee expenses Others 94,730 50,775 SinoPac Securities Investment Trust Fee revenues Others 45,343 54,256

27) Gains (losses) on financial assets and liabilities at fair value through profit or loss, net

For the Three Months Ended March 31 2021 2020

SinoPac Securities and its subsidiaries Others $ 54 $ 2 SinoPac Securities Investment Trust Others 63 3,105 SinoPac Venture Capital and its subsidiaries Others 2,551 37,892

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28) Net other revenue other than interest income

For the Three Months Ended March 31 2021 2020

Bank SinoPac and its subsidiaries Operating assets rental revenue Others $ 2,282 $ 2,295 Other revenues Others 283 284 SinoPac Securities and its subsidiaries Stock affairs agent revenue Others 2,473 2,690 Expenses on issuance of call (put) warrants Others 17,205 22,944 Other net revenues Others 44,070 29,879 SinoPac Leasing and its subsidiaries Other expenses Others 58 89

29) Operating expenses

For the Three Months Ended March 31 2021 2020

The Company Others $ 1,581 $ 1,970 Bank SinoPac and its subsidiaries Others 44,445 43,971 SinoPac Securities and its subsidiaries Others 49,147 31,216 SinoPac Securities Investment Trust Others 590 625 SinoPac Venture Capital and its subsidiaries Others 11 17 SinoPac Leasing and its subsidiaries Others 1,481 1,470

30) Other transactions

To discharge corporate social responsibility, Bank SinoPac and SinoPac Securities propose to contribute $32,000 jointly to establish Foundation of SinoPac (In progress). Bank SinoPac and SinoPac Securities approved to supply $27,000 and $5,000, respectively in August 2020, and replied by letter to contact the authorities in March 2021.

The subsidiaries of SinoPac Securities acquired management shares of SinoPac Multi Strategy Quant Fund Limited, SinoPac Multi-Series Fund Ⅱ Limited, SinoPac Multi-Series Fund SPC, SinoPac Structured Funds SPC and Accudo Asia Value Arbitrage Fund establish in Cayman Islands in the amount of $6. The management shares were issued to the investment manager in compliance with specific legal procedures, and the holders do not have the rights to participate in profit, assets or distributions of surplus funds.

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31) Compensation of key management personnel

For the Three Months Ended March 31 2021 2020

Short-term employee benefits $ 25,145 $ 28,337 Post-employment benefits 466 612

$ 25,611 $ 28,949

The management personnel are composed of general manager, vice general manager and other employees with higher positions. c. Related-party transactions amounting to over $100,000

Bank SinoPac and its subsidiaries

1) Due from the Central Bank and call loans to banks

December 31, 2020 Ending Interest Rate Balance (%)

Call loans to bank Hwa Nan Bank $ 997,793 0.05-2.37

For the Three Months Ended March 31, 2020 March 31, 2020 Ending Interest Rate Interest Balance (%) Income

Call loans to bank Hwa Nan Bank $ 1,211,200 0.8-2.37 $ 3,960 Grand Bills Finance 260,000 0.45 26

2) Derivative financial instruments

March 31, 2021 Contract (Notional) Contract Valuation Amount Period Gains or Losses Account Balance

Interest rate swap contracts SinoPac Securities $ 500,000 2020.3.9- $ (197 ) Financial assets at fair value $ 507 2022.3.9 through profit or loss SinoPac Securities 675,000 2020.8.3- (498 ) Financial liabilities at fair 1,797 2024.8.12 value through profit or loss Hua Nan Bank 5,546,579 2020.9.8- 21,220 Financial assets at fair value 36,382 2031.3.12 through profit or loss Hua Nan Bank 500,000 2020.4.13- 249 Financial liabilities at fair 410 2030.4.15 value through profit or loss Forward contracts YFY International 1,569,296 2020.10.16- (5,549 ) Financial assets at fair value 26,265 2021.6.4 through profit or loss Currency swap contracts SinoPac Securities 1,539,319 2021.1.12- 8,459 Financial assets at fair value 8,459 2021.6.15 through profit or loss

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December 31, 2020 Contract (Notional) Amount Contract Period Account Balance

Interest rate swap contracts SinoPac Securities $ 500,000 2020.3.9-2022.3.9 Financial assets at fair value $ 703 through profit or loss SinoPac Securities 675,000 2020.8.3-2024.8.12 Financial liabilities at fair 1,300 value through profit or loss Hua Nan Bank 3,546,579 2020.9.8-2030.11.20 Financial assets at fair value 15,162 through profit or loss Hua Nan Bank 1,000,000 2020.4.13-2030.7.9 Financial liabilities at fair 1,266 value through profit or loss Forward contracts YFY International 2,138,128 2020.10.16-2021.6.4 Financial assets at fair value 46,999 through profit or loss Currency swap contracts SinoPac Securities 1,748,913 2020.11.23-2021.2.26 Financial assets at fair value 24,044 through profit or loss

March 31, 2020 Contract (Notional) Contract Valuation Amount Period Gains or Losses Account Balance

Interest rate swap contracts SinoPac Securities $ 800,000 2015.8.26- $ 1,639 Financial assets at fair value $ 2,391 2022.3.9 through profit or loss SinoPac Securities 300,000 2015.9.1- 122 Financial liabilities at fair 702 2020.9.1 value through profit or loss Forward contracts YFY International 1,968,199 2020.1.7- (27,788 ) Financial liabilities at fair 27,788 2020.5.26 value through profit or loss YFY Cayman 908,400 2020.2.5- (10,850 ) Financial liabilities at fair 10,850 2020.5.12 value through profit or loss

3) Financial assets at fair value through other comprehensive income

December 31, March 31, 2021 2020 March 31, 2020

Equity instruments Quanta Computer $ 322,420 $ 266,161 $ - Debt instruments Hua Nan Bank - 4,998,609 1,000

4) Securities purchased under resell agreements

For the Three Months Ended March 31, 2021 March 31, 2021 Carrying Interest Face Amount Amount Income

SinoPac Securities $ 970,110 $ 830,300 $ 1,095

December 31, 2020 Carrying Face Amount Amount

SinoPac Securities $ 969,285 $ 829,594

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For the Three Months Ended March 31, 2020 March 31, 2020 Carrying Interest Face Amount Amount Income

SinoPac Securities $ 1,244,205 $ 1,090,245 $ 8,187

5) Receivables and payables

December 31, March 31, 2021 2020 March 31, 2020

Receivables YFY Packaging (YangZhou) $ - $ 72,945 $ 266,298 Payables YFY Packaging (YangZhou) $ - $ 72,945 $ 266,298 Cash dividend payable to the Company $ 1,435,025 $ 1,435,025 $ 1,435,025

6) Current income tax assets and liabilities

December 31, March 31, 2021 2020 March 31, 2020

Receivable from adopting the linked-tax system $ 1,055,020 $ 1,060,924 $ 1,276,102 Payable from adopting the linked-tax system $ 720,691 $ 359,498 $ 980,850

7) Loans

For the Three Months Ended March 31, 2021 Ending Highest Interest/ Interest Balance Balance Fee Rates (%) Revenue

Others $ 9,895,037 $ 10,387,412 0-6.53 $ 30,535

March 31, 2021 Is the Transaction Account Volume Category Highest Ending at Arm’s or Name of Normal Overdue Type of Collaterals Balance Balance Length Related Party Commercial Term Employees’ 292 $ 502,663 $ 490,199 V - None Yes consumer loans Household mortgage 1,075 5,908,690 5,763,684 V - Real estate Yes loans Others: SPL 970,000 900,000 V - Real estate Yes Evercast Precision 49,674 44,126 V - Real estate Yes Kim Great 46,474 45,749 V - Real estate Yes Hao Yu 11,600 - V - Real estate Yes Hao-Xin-Di 8,542 8,330 V - Real estate Yes Hotai Investment 3,231 3,025 V - Vehicle Yes Others 2,886,538 2,639,924 V - Real estate, certificates Yes of deposits, securities and vehicle Others subtotal 3,976,059 3,641,154 Total $ 10,387,412 $ 9,895,037

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For the Year Ended December 31, 2020 Ending Interest/ Balance Highest Balance Fee Rates (%)

Other $ 10,806,061 $ 17,266,227 0-10.24

December 31, 2020 Is the Transaction Account Volume Category Highest Ending at Arm’s or Name of Normal Overdue Type of Collaterals Balance Balance Length Related Party Commercial Term Employees’ 296 $ 515,494 $ 469,781 V - None Yes consumer loans Household mortgage 1,078 6,101,734 5,718,414 V - Real estate Yes loans Others: Quanta Computer 5,117,318 - V - None, Note 1 Yes SPL 1,070,000 970,000 V - Real estate Yes Boardtek 900,000 900,000 V - Real estate Yes Electronics Universal Cement 200,000 - V - None, Note 1 Yes Evercast Precision 51,838 49,674 V - Real estate Yes Kim Great 48,661 46,474 V - Real estate Yes Hoss Venture 30,000 - V - Real estate Yes Hao Yu 16,400 11,600 V - Real estate Yes Chen Shih 15,000 15,000 V - Real estate Yes Automation Industrial Hao-Xin-Di 9,381 8,542 V - Real estate Yes Greatwell 8,200 8,200 V - Real estate Yes Enterprise Hotai Investment 3,300 3,231 V - Vehicle Yes Others 3,178,901 2,605,145 V - Real estate, certificates Yes of deposits and vehicle Others subtotal 10,648,999 4,617,866 Total $ 17,266,227 $ 10,806,061

For the Three Months Ended March 31, 2020 Ending Highest Interest/ Interest Balance Balance Fee Rates (%) Revenue

Others $ 9,773,253 $ 10,257,537 0-8.66 $ 36,754

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March 31, 2020 Is the Transaction Account Volume Category Highest Ending at Arm’s or Name of Normal Overdue Type of Collaterals Balance Balance Length Related Party Commercial Term Employees’ 308 $ 489,220 $ 475,514 V - None Yes consumer loans Household mortgage 1,025 5,279,623 5,151,298 V - Real estate Yes loans Others: SPL 975,000 900,000 V - Real estate Yes Boardtek 800,000 800,000 V - Real estate Yes Electronics Evercast Precision 51,838 51,302 V - Real estate Yes Hoss Venture 30,000 30,000 V - Real estate Yes Kim Great 17,272 16,901 V - Real estate Yes Hao Yu 16,400 15,200 V - Real estate Yes Hao-Xin-Di 9,381 9,174 V - Real estate Yes Greatwell 8,200 8,200 V - Real estate Yes Enterprise Shyang Yih 38 - V - Vehicle Yes Logistics Others 2,580,565 2,315,664 V - Real estate, certificates Yes of deposits and vehicle Others subtotal 4,488,694 4,146,441 Total $ 10,257,537 $ 9,773,253

Note 1: Non-related party of Bank SinoPac at the loan signing date.

Note 2: Debtors of related party loans are all within normal credit ranking. The Group estimated the provision for doubtful debt periodically in accordance with the guidelines issued by the authority and IFRSs.

8) Other assets

December 31, March 31, 2021 2020 March 31, 2020

Guarantee deposits SinoPac Futures $ 247,555 $ 298,336 $ 328,119

9) Notes and bonds transaction

For the Three Months Ended March 31, 2021 Purchase of Notes and Sell of Notes Bonds and Bonds

Hua Nan Bank $ - $ 5,003,395

For the Three Months Ended March 31, 2020 Purchase of Notes and Sell of Notes Bonds and Bonds

The Company $ 2,000,000 $ - SinoPac Securities - 4,700,000

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10) Deposits from the Central Bank and banks

December 31, 2020 Interest Rates Ending Balance (%)

Hua Nan Bank $ 1,282,877 0.08-12.00

For the Three Months Ended March 31, 2020 March 31, 2020 Interest Rates Interest Ending Balance (%) Expense

Hua Nan Bank $ 302,800 0.70-3.00 $ 431

11) Deposits

March 31, 2021 Interest Rates Ending Balance (%)

Pegatron $ 22,505,077 0.03-0.76 Quanta Computer 20,000,030 0-0.76 SinoPac Securities 4,385,439 0-0.8 SinoPac Capital International Limited 3,306,179 0.02-0.2 SinoPac Securities (Asia) Ltd. 1,849,410 0-0.95 SinoPac Capital International (HK) 1,100,224 0.001-0.15 Shin Foong Specialty And Applied Materials 1,065,241 0.03-0.38 E Ink Holdings 922,619 0.001-0.815 Hsin-Yi Foundation 887,311 0.01-1.95 Foundation of Fire Fighting Development 729,527 0-0.84 YFY Investment 652,912 0.05-2.025 Nuvoton Technology 550,000 0.08-0.49 YuanHan Material 503,490 0.001-0.815 Tech Smart Logistics Ltd. 450,274 0.03 Dream Universe Limited 346,852 0.05 SinoPac Venture Capital 327,898 0.01-0.38 Hsin Yi Recreation 314,346 0.03-1.5 China Color Printing 271,135 0.03-0.815 PVI Global Corporation 270,794 0.05 YFY Biotech Management 216,900 0-0.76 SinoPac International Leasing 200,168 0.05-2.025 TWSE 200,000 0.03-0.76 SinoPac Securities Investment Service 176,080 0-0.815 Effion Enertech 141,313 0.03-0.76 Sun He Energy 138,834 0.03 Yong Hsin Yi Enterprise 131,457 0.03-0.45 Taiwan Riken Industrial 119,093 0-2.4 Shin Yuan Investment 118,764 0.001-0.45 Willpower Industries Limited 116,459 0.03-0.21 Hoss Capital 104,028 0.03-0.2

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December 31, 2020 Interest Rates Ending Balance (%)

Quanta Computer $ 15,500,906 0-0.76 Pegatron Corporation 14,664,985 0.03-0.76 SinoPac Securities 6,781,400 0-1.01 SinoPac Securities (Asia) Ltd. 3,451,570 0-2.4 SinoPac Capital International Limited 2,139,981 0.001-0.2 Hydis Technologies Co., Ltd. 1,555,868 0.03 Hsin-Yi Foundation 868,661 0.01-1.75 Nuvoton Technology 734,300 0.01-0.49 E Ink Holdings 729,138 0.001-0.815 Foundation of Fire Fighting Development 729,042 0-0.84 YuanHan Material 713,395 0.001-0.815 YFY Inc. 658,150 0.05-2.025 SinoPac TWD Money Market Fund 500,132 0.03 Tech Smart Logistics Ltd. 449,717 0.03 Shin Foong Specialty And Applied Materials 419,065 0.03-0.57 Dream Universe Limited 347,126 0.05 SinoPac Venture Capital 324,506 0.01-0.38 New Field E-Paper 316,794 0.03 Hsin Yi Recreation 309,018 0.03-1.5 Transcend Optronics (YangZhou) 286,774 0.05-0.6 YFY Biotech Management 282,956 0-0.76 PVI Global Corporation 271,008 0.05 China Color Printing 270,226 0.03-0.815 TWSE 200,000 0.03-1.01 SinoPac Securities Investment Service 183,163 0-0.815 TransYork Technology (YangZhou) 169,957 0.05 SinoPac Securities Venture Capital 167,922 0.03 Foundation of Private School 151,172 0-0.83 SPH 139,621 0-0.03 Sun He Energy 138,823 0.03 Yong Hsin Yi Enterprise 131,036 0.03-1.55 Hoss Capital 126,309 0.03-1.4 Shin Yuan Investment 120,156 0.001-0.55 Foongtone technology 116,908 0-1.35 Willpower Industries Limited 116,304 0.03-0.3 Taiwan Securities Association 114,947 0.08-0.84 Yuen Foong Paper 111,467 0-1.065 Taiwan Riken Industrial 110,902 0-2.3 Taigen Biotechnology 105,566 0-1.01

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March 31, 2020 Interest Rates Ending Balance (%)

Pegatron $ 8,616,949 0.06-0.74 SinoPac Securities 4,296,511 0-1.01 SinoPac Securities (Asia) Ltd. 1,754,619 0-2.65 Hydis Technologies Co., Ltd. 1,636,788 0.2-1.75 Hsin-Yi Foundation 821,565 0.01-2.8 Foundation of Fire Fighting Development 733,646 0-1.08 YFY Cayman 733,535 0.2-2.2 SinoPac Capital (Asia) Limited 387,738 0-2.65 Dream Universe Limited 360,251 0.05 YFY Biotech Management 358,091 0-1.01 SinoPac Capital International Limited 330,611 0.01-0.35 Rich Optronics (YangZhou) 304,338 0.05-3.9 E Ink Holdings 293,647 0.001-1.01 China Color Printing 270,527 0.03-0.815 YFY Packaging (YangZhou) 269,120 0.35-3.6 TransYork Technology (YangZhou) 251,282 0.05-3.1 Shin Foong Specialty And Applied Materials 251,206 0.03-0.815 SPL 232,735 0.02-0.35 SinoPac Venture Capital 231,087 0.03-2.01 TWSE 200,000 0.03-1.01 Taiwan Securities Association 198,385 0.08-1.08 Hsin Yi Recreation 193,425 0.03-2.9 SinoPac International Leasing 178,224 0.05-1.2075 Yong Hsin Yi Enterprise 153,655 0.03-2.25 SinoPac Securities Investment Service 152,798 0-0.815 PVI Global Corporation 146,980 0.05-3.1 Sino Cell Technologies 143,364 0-0.35 Shin Yuan Investment 135,898 0.001-2.25 Yuen Foong Paper 135,015 0-1.09 Taigen Biotechnology 129,161 0-2.1 Shen’s Art Printing 127,891 0.03-2.2 Hoss Capital 122,065 0.03-0.35 SinoPac Futures 113,939 0.001-1.01 Taiwan Riken Industrial 107,062 0-2.3 YuanHan Material 102,781 0.001-0.815

12) Bank debentures

Except that the related parties bought financial bonds issued by Bank SinoPac from market, third subordinated bank debentures issued in 2015 by Bank SinoPac were subscribed by related parties for a total amount of $620,000, as of the last interest payment date, for the three months ended March 31, 2020.

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13) Lease

Bank SinoPac and its subsidiaries as a lessee.

December 31, March 31, 2021 2020 March 31, 2020

Right-of-use assets, net SPL $ 660,920 $ 675,064 $ 709,808 Chunghwa Telecom 141,683 152,868 186,425 Lease liabilities SPL 677,827 688,469 712,119 Chunghwa Telecom 142,978 154,074 187,197

SinoPac Securities and its subsidiaries

1) Bank deposits

December 31, March 31, 2021 2020 March 31, 2020

Bank SinoPac $ 4,500,912 $ 8,571,531 $ 4,616,919

Bank deposits included cash and cash equivalents, other financial assets - current, other current assets - settlement, underwriting receipts under custody and separated account for customer.

December 31, March 31, 2021 2020 March 31, 2020

2) Operating securities

Fund managed by SinoPac Securities Investment Trust $ 151,804 $ 158,984 $ 147,458 Fund managed by SinoPac Asset Management (Asia) 84,039 142,584 102,625

$ 235,843 $ 301,568 $ 250,083

3) Derivative financial instruments - contract (notional) amount

Interest rate swap contracts Bank SinoPac $ 1,175,000 $ 1,175,000 $ 1,100,000 Currency swap contracts Bank SinoPac $ 1,626,286 $ 1,748,913 $ - Assets swap options Grand Bills Finance $ 253,400 $ 344,300 $ 364,100

4) Securities purchased under resell agreements

Grand Bills Finance $ 816,305 $ 837,073 $ 1,467,974 Others 245,579 260,367 413,726

$ 1,061,884 $ 1,097,440 $ 1,881,700

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December 31, March 31, 2021 2020 March 31, 2020

5) Securities borrowing deposits

TWSE $ 154,000 $ 354,000 $ 1,679,000

6) Current income tax assets

The Company $ 176,735 $ 182,956 $ 201,488

7) Restricted assets - current

Bank SinoPac $ 1,025,000 $ 1,025,000 $ 1,025,000

8) Guarantee deposits

Bank SinoPac $ 715,609 $ 715,595 $ 685,645

9) Financial assets at fair value through other comprehensive income

TWSE $ 357,495 $ 340,173 $ 146,424 Elite Material 101,400 94,200 - Pegatron 7,410 6,730 282,286

$ 466,305 $ 441,103 $ 428,710

10) Right-of-use assets

Bank SinoPac $ 102,226 $ 110,476 $ 105,985

11) Securities sold under repurchase agreements

Bank SinoPac $ 830,300 $ 829,594 $ 1,090,245 SinoPac Securities Investment Trust Funds 72,721 73,104 231,421

$ 903,021 $ 902,698 $ 1,321,666

12) Commercial papers payable - face amount

Grand Bills Finance $ 2,150,000 $ 1,350,000 $ - Hua Nan Bank 800,000 300,000 -

$ 2,950,000 $ 1,650,000 $ -

13) Futures trader’s equity

Bank SinoPac $ 252,122 $ 272,870 $ 322,217 Funds managed by SinoPac Securities Investment Trust 91,750 104,939 539,102

$ 343,872 $ 377,809 $ 861,319

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December 31, March 31, 2021 2020 March 31, 2020

14) Current income tax liabilities

The Company $ 551,542 $ 410,483 $ 115,851

15) Lease liabilities

Bank SinoPac $ 105,286 $ 113,614 $ 107,218

16) Notes and bonds transaction

For the Three Months Ended March 31, 2021 Purchase of Notes and Sell of Notes Bonds and Bonds

Hua Nan Bank $ 1,548,572 $ 1,200,000 Grand Bills Finance 419,843 1,450,000

For the Three Months Ended March 31, 2020 Purchase of Notes and Sell of Notes Bonds and Bonds

Bank SinoPac $ 4,700,000 $ - The Company 3,000,000 - Others 44,110 118,879

SinoPac Securities Investment Trust

December 31, March 31, 2021 2020 March 31, 2020

Financial assets at fair value through profit or loss Funds managed by SinoPac Securities Investment Trust $ 513 $ 579 $ 116,386

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SinoPac Venture Capital and its subsidiaries

December 31, March 31, 2021 2020 March 31, 2020

Cash and cash equivalents and other financial assets Bank deposits Bank SinoPac $ 327,898 $ 324,506 $ 242,349 Hua Nan Bank 40,315 40,298 176,185

$ 368,213 $ 364,804 $ 418,534

Financial assets at fair value through profit or loss Taigen Biopharmaceuticals $ 532,923 $ 484,286 $ 295,908 Centera Photonics 104,129 104,129 103,191

$ 637,052 $ 588,415 $ 399,099

SinoPac Leasing and its subsidiaries

December 31, March 31, 2021 2020 March 31, 2020

1) Cash and cash equivalents and other financial assets

Bank SinoPac $ 4,474,337 $ 2,289,116 $ 563,346 Bank SinoPac (China) Ltd. 200,447 158,369 178,261

$ 4,674,784 $ 2,447,485 $ 741,607

2) Commercial papers payable - face amount

Grand Bills Finance $ - $ 150,000 $ 275,000

3) Short-term and long-term borrowings

Borrowings from banks Bank SinoPac $ 900,000 $ 970,000 $ 900,000 Hua Nan Bank 20,000 - 137,842

$ 920,000 $ 970,000 $ 1,037,842

4) As of March 31, 2021, December 31, 2020 and March 31, 2020, borrowings, derivative financial instruments and guarantees from Bank SinoPac and its subsidiaries for SinoPac Leasing and its subsidiaries totaling $1,212,663, $1,355,084 and $1,372,800, respectively, and investment properties were provided as collaterals for SinoPac Leasing’s borrowings.

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46. PLEDGED OR MORTGAGED ASSETS

In addition to those disclosed in other Notes, pledged or restricted assets of the Group are summarized as follows:

December 31, Restricted Assets Object March 31, 2021 2020 March 31, 2020 Remarks

Due from the Central Bank and Deposit reserve - $ 5,000,000 $ 5,000,000 $ - Note 1 call loans to banks demand accounts Investment in debt instruments at Certificates of deposits 8,142,663 8,142,542 5,151,400 Note 2 amortized cost Investment in debt instruments at Government bonds 1,402,222 1,379,738 1,144,963 Note 3 amortized cost Discounts and loans Loans 17,104,667 13,801,044 1,948,003 Note 4 Other financial assets Certificates of deposits 3,059,016 3,079,944 3,008,046 Note 5 and time deposits Investment properties Land and land 719,270 719,722 721,423 Note 6 improvements and buildings Properties and equipment Land and buildings 852,383 856,637 895,994 Note 6 Right-of-use assets Land and surface rights 985,778 994,650 1,021,267 Note 7

Note 1: Bank SinoPac undertakes loans for small and medium enterprises and applies to the Central Bank for guarantee loan refinancing, and provides the Central Bank with pledged reserve account deposits.

Note 2: Pledged in accordance with the Central Bank for foreign-exchange, with the Mega Bank for USD foreign-exchange settlement and with requirements of the California Department of Financial Institutions.

Note 3: Guarantees of dealing and underwriting business, a trust reserve fund, guarantees of bills financial service, reserve for payment of VISA international card, pledged to court as collaterals for filing provisional seizure and disposition and Hong Kong branch’s clearing system of real-time gross settlement.

Note 4: Pledged with the Federal Reserve Bank under the discount window program.

Note 5: Pledged with intraday overdraft of settlement banks, and assets pledged to financial institutions as guarantees for commercial papers issued and pledged to obtain credit line for short-term borrowings and bank overdraft.

Note 6: Assets pledged to financial institutions as guarantees for commercial papers issued and pledged to obtain credit line for borrowings and bank overdraft.

Note 7: Loan collateral.

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47. SIGNIFICANT CONTINGENCIES LIABILITIES AND UNRECOGNIZED COMMITMENTS

a. In addition to those disclosed in other notes, significant unrecognized commitments of the Group as of March 31, 2021, December 31, 2020 and March 31, 2020 are as follows:

December 31, March 31, 2021 2020 March 31, 2020

Trust assets $ 578,543,732 $ 553,820,779 $ 541,466,885 Securities under custody 179,562,723 169,305,568 153,625,067 Agent for government bonds 87,654,000 82,429,900 102,706,000 Receipts under custody 25,177,657 25,798,395 25,533,051 Guarantee notes payable 11,318,979 11,313,886 8,276,746 Agent for marketable securities under custody 6,419,100 7,499,160 9,466,900 Appointment of investment 3,474,208 3,204,791 2,869,123 Goods under custody 1,148,276 1,161,933 1,180,807 Travelers’ checks consigned-in - - 146,892

As of March 31, 2021, in addition to above mentioned unrecognized commitments, Bank SinoPac and SinoPac Securities had applied for tax concessions to Ministry of Finance regarding their technical support service expenditure relating to financial transaction system, and had jointly signed to the system manufacturer the letter of which indemnity of the total compensation is not more than US$1,300 thousand to obtain the proxy of the manufacturer thereof to apply for foresaid tax concession. The compensation distributable to Bank SinoPac is US$867 thousand and to SinoPac Securities is US$433 thousand. The deadline for compensation guarantee period is December 31, 2027.

In order to continue the cooperation with National Cheng Kung University on the research about practical application of artificial intelligence and accelerate the digital transformation, Bank SinoPac continued to sign a three-year enterprise and industry cooperation and donation agreement effective from July 1, 2020 through June 30, 2023. As of March 31, 2021, the Bank recognized operating expense in the amount of $48,000 and related payable in the amount of $27,000 based on the renewed contract.

b. The Group entered into contracts to buy computers and office equipment for $754,371 and $563,379, of which $552,453 and $372,352 had not been paid as of March 31, 2021 and 2020.

c. Contingent liabilities and contingencies

1) The Securities and Futures Investors Protection Center (SFIPC) filed a lawsuit against Bank SinoPac and SinoPac Leasing Company’s (SPL) subsidiary, Grand Capital International Limited (renamed as SinoPac Capital International Limited on October 4, 2018), on the ground that Procomp Informatics Ltd. (Procomp) deposited US$10,000 thousand in Bank SinoPac’s Shisung Branch (formerly Sungshan Branch) and placed a restriction on the use of this deposit as a condition for a short-term loan to Addie International Limited granted by SPL and for allegedly helping Yeh, Sue-Fei and Procomp do irregular trading. But at the same time, Procomp used the restricted deposit for fictitious sale transactions. Later, when problems on Procomp’s account arose, Bank SinoPac and Grand Capital demanded compensation, which was taken from Procomp’s account, resulting in damage to Procomp. Bank SinoPac was suspected of misleading investors by concealing the restricted status of Procomp’s deposit and window dressing Procomp’s financial statements. On behalf of investors, the SFIPC filed a lawsuit against Bank SinoPac, SPL and all other parties related to Procomp jointly. The amount of the claim was $4,207,212 in total. Both the court of the first instance and the second instance ruled in favor of Bank SinoPac and SPL. The court believes that Bank SinoPac and SinoPac Leasing are not liable for the damage of Procomp as they do not hold rights and obligations to the edition, approval, recognition and announcement of Procomp’s financial statements and Bank SinoPac and SinoPac Leasing did not conspire with Procomp to conceal the restricted status of Procomp. However, the SFIPC decided to file an appeal on January

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20, 2016. The Supreme Court reversed the declared judgement on July 26, 2017 and remanded the case to Taiwan High Court. The case is still under process. The SFIPC reduced their declaration to $4,161,366, and once again reduced their declaration to $4,161,219. The Taiwan High Court ruled in favor of Bank SinoPac and SinoPac Leasing on May 7, 2019. However, the SFIPC decided to file an appeal to the Supreme Court on June 6, 2019. On March 23, 2021, the Supreme Court dismissed the appeal to SinoPac Leasing (conviction affirmed), and remanded Bank SinoPac’s case to Taiwan High Court.

2) Bank SinoPac dealt with Skwentex International Corporation (Skwentex) regarding Skwentex’s receivables from Siltrontech Electronics Corporation. The relevant accounts receivable transaction involved suspected false cycle trading and was investigated by the Taiwan New Taipei District Prosecutors in 2015. This case was still under process by the Taiwan New Taipei District Prosecutors in 2016. Due to the abnormal and suspected unlawful accounts receivable transaction, Bank SinoPac cannot pay the consideration of accounts receivable to Skwentex in accordance with the credit contract. Skwentex sued Bank SinoPac in July 2017 and demanded a compensation of $214,471. The Taiwan Taipei District Court ruled in favor of Bank SinoPac on February 27, 2020. Skwentex was dissatisfied and appealed in March 2020, currently under trial by Taiwan High Court.

3) A certain Mr. Jane, SinoPac Securities’ brokerage client, sued an employee of SinoPac Securities, Mr. Jun, for allegedly committing fraud from 2012 to 2014. But evidence presented for this trial showed that SinoPac Securities was not jointly liable for the injury arising from its employee’s actions. Had the Court determined otherwise, SinoPac Securities would have been required to make only a partial compensation. The appeal was dismissed by Taiwan Taoyuan District Court and Taiwan High Court. SinoPac Securities won the case. Nevertheless, Mr. Jane filed another appeal to the Supreme Court. The Supreme Court returned the case to Taiwan High Court. On May 18, 2021, the appeal was rejected by the Taiwan High Court and SinoPac Securities won the case. SinoPac Securities will entrust an external lawyer to handle the case if the plaintiff files another appeal.

4) In August 2017, the former operation manager Mr. Huang of SinoPac Securities accused SinoPac Securities in Taiwan Taichung District Court of unlawful dismissal and wanted to reconfirm the employment relationship and be reinstated with back salaries until the reinstatement date on a monthly basis. Upon investigation, the job performance of the plaintiff did not meet the long-term goals when he was on the job and SinoPac Securities already paid him severance fee. The appeal was rejected by the Taiwan High Court, Taichung Branch Court and SinoPac Securities won the case. Nevertheless, Mr. Huang filed another appeal to the Supreme Court. The Supreme Court returned the case to Taiwan High Court Taichung Branch Court, and the case is still under process in the Taiwan High Court Taichung Branch Court, and subsequent litigation has been entrusted to an outside lawyer.

5) In the years 1999 to 2006, the former salesman, Mr. Zhu of Pacific Securities which was merged by SinoPac Securities in 2012, appeared to have debt disputes with the customer Mr. Chen and other three people due to bond sales. The customers filed civil complaint at the Taiwan Taipei District Court against SinoPac Securities asking for $13,000 damage compensation. This case happened long ago, and Mr. Zhu resigned in 2016. At present, it is only known that Mr. Zhu appeared to fabricate the fact of government bonds repurchase transaction to cause the customer to be defrauded and Mr. Chen also sued the plaintiff Mr. Zhu of this case for criminal lawsuit. Since the plaintiff did not submit the original copy of the exhibit, the existence of the content rights of the plaintiff is still controversial, and there is no significant adverse effect on SinoPac Securities. The appeal was rejected by the Taiwan District Court and ruled in favor of SinoPac Securities. Nevertheless, the customers filed another appeal and the case is still under process in the Taiwan High Court. The subsequent litigation has been entrusted to an outside lawyer.

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6) Plaintiff Mr. Tang filed a civil complaint against SinoPac Securities (Asia) in January 2018. The plaintiff claimed that the Company committed a breach of obligation and liable for HK$59,670 thousand for his loss in stock transfer without authorization. However, the Company transferred the stocks based on stock purchase and sale agreement and Mr. Tang’s order and was not liable for the loss. The Company entrusted an external lawyer to handle the case and would take all necessary actions to defend the Company against the claim.

7) SinoPac Securities (Asia) received the letter of legal representative from four clients in October 2018, claiming that they received a forged statement of accounts and proposing that SinoPac Securities (Asia) should be liable for damages. An internal investigation by SinoPac Securities (Asia) showed that a former and current employees were involved in this case, and have reported to the Hong Kong Securities and Futures Commission and the police simultaneously. The settlement was reached with four customers for a total amount of HK$3,545 thousand. SinoPac Securities (Asia) filed a civil complaint against the employee to pay settlement amount in August 2020, and the Taiwan Taipei District Court ruled in favor of SinoPac Securities (Asia) that the employee has to pay SinoPac Securities (Asia) total amount of HK$3,545 thousand. The case has been entrusted to an outside lawyer.

8) The custodian bank of SinoPac Securities (Asia) has carried out the Taiwan Taipei District Court’s order to seize SinoPac Securities (Asia)’s settlement payment to company V, in which SinoPac Securities (Asia) was unable to fulfill its stock purchasing agreement. As a result, company V has filed a civil complaint against SinoPac Securities (Asia), claiming the remaining balance of $731,442 in SinoPac Securities (Asia)’s account in October 2019. SinoPac Securities (Asia) is not liable for the failure of payment, and the legal obligations in the original seizure of the expected payment are still to be determined. Thus, the case is still in process and SinoPac Securities (Asia) has entrusted an external lawyer for further litigations.

48. LEASE AGREEMENT

a. The Group as lessee

All the Group’s lease agreements on business space and transportation equipment with terms of between 1 year and 20 years. The Group has no bargain purchase option.

The future minimum lease payments for the Group’s lease commitments are as follows:

1 Year Within 1 Year Over 5 Years Total to 5 Years As of March 31, 2021 $ 824,482 $ 1,632,578 $ 657,881 $ 3,114,941 As of December 31, 2020 787,317 1,541,560 612,474 2,941,351 As of March 31, 2020 817,633 1,500,401 457,594 2,775,628

b. The Group as lessor

Leased properties are mainly from the investment properties owned by the Group. All lease agreements have market review clauses when lessees exercise lease renewal potions. The lessees have no bargain purchase option on the leased properties.

The Group’s lease commitments are as follows:

Within 1 1 Year March 31, 2021 Over 5 Years Total Year to 5 Years Operating lease revenue $ 195,662 $ 359,023 $ 352,315 $ 907,000 Financial lease revenue 2,161,368 933,513 52,994 3,147,875 Financial lease revenue, present value 1,976,117 872,325 49,554 2,897,996

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Within 1 1 Year December 31, 2020 Over 5 Years Total Year to 5 Years Operating lease revenue $ 177,029 $ 353,783 $ 348,561 $ 879,373 Financial lease revenue 2,486,841 1,060,117 54,495 3,601,453 Financial lease revenue, present value 2,259,883 998,556 50,860 3,309,299

Within 1 1 Year March 31, 2020 Over 5 Years Total Year to 5 Years Operating lease revenue $ 139,491 $ 346,153 $ 372,203 $ 857,847 Financial lease revenue 2,394,164 1,458,857 58,958 3,911,979 Financial lease revenue, present value 2,130,769 1,389,148 54,710 3,574,627

49. HIERARCHY AND FAIR VALUE INFORMATION OF FINANCIAL INSTRUMENTS

a. The definition of the hierarchy:

1) Level one

Level 1 financial instruments are traded in active market and have the identical price for the same financial instruments. “Active market” should fit the following characteristics:

a) All financial instruments in the market are homogeneous;

b) Willing buyers and sellers exist in the market all the time;

c) The public can access the price information easily.

2) Level two

The products categorized in this level have the prices that can be inferred from either direct or indirect observable inputs other than the active market’s prices. Examples of these inputs are:

a) Quoted prices from the similar products in the active market. This means the fair value can be derived from the current trading prices of similar products. It is also noted that whether they are similar products should be judged by the characteristics and trading rules. The fair value valuation in this circumstance may make some adjustment due to time lags, trading rule’s differences, related parties’ prices, and the correlation of price between itself and the similar instruments.

b) Quoted prices for identical or similar financial instruments in inactive markets.

c) When marking-to-model, the input of model in this level should be observable (such as interest rates, yield curves and volatilities). The observable inputs mean that they can be attained from market and can reflect the expectation of market participants.

d) Inputs which can be derived from other observable prices or whose correlation can be verified through other observable market data.

3) Level three

The fair prices of the products in this level are based on the inputs other than the direct market data. For example, historical volatility used in valuing options is an unobservable input, because it cannot represent the entire market participants’ expectation for future volatility.

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b. Financial instrument measured at fair value

1) Hierarchy information of fair value of financial instruments

March 31, 2021 Financial Instruments Measured at Fair Value Total Level 1 Level 2 Level 3 Measured on a recurring basis

Non-derivative financial instruments

Assets

Financial assets at fair value through profit or loss Financial assets mandatorily classified as at FVTPL Stocks $ 7,192,501 $ 5,400,988 $ 123,657 $ 1,667,856 Bonds 46,003,292 38,113,969 6,199,831 1,689,492 Others 8,147,669 3,460,501 4,687,168 - Financial assets designated at fair value through profit or loss Bonds 2,400,548 2,400,548 - - Financial assets at fair value through other comprehensive income Equity instruments at fair value through other comprehensive income Stocks and others 15,843,675 12,277,598 1,218,394 2,347,683 Debt instruments at fair value through other comprehensive income Bonds 171,445,561 115,364,963 53,639,446 2,441,152 Certificates of deposits purchased and others 176,012,370 - 176,012,370 -

Liabilities

Financial liabilities at fair value through profit or loss Held-for-trading financial liabilities 1,182,881 1,182,881 - - Financial liabilities designated at fair value through profit or loss 1,538,764 - 1,538,764 -

Derivative financial instruments

Assets

Financial assets at fair value through profit or loss Financial assets mandatorily classified as at FVTPL 17,158,714 427,536 16,374,713 356,465

Liabilities

Financial liabilities at fair value through profit or loss Held-for-trading financial liabilities 18,498,870 816,294 17,219,761 462,815 Financial liabilities designated as at fair value through profit or loss 554,106 - 455,531 98,575

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December 31, 2020 Financial Instruments Measured at Fair Value Total Level 1 Level 2 Level 3 Measured on a recurring basis

Non-derivative financial instruments

Assets

Financial assets at fair value through profit or loss Financial assets mandatorily classified as at FVTPL Stocks $ 5,856,693 $ 4,429,601 $ 38,052 $ 1,389,040 Bonds 49,646,507 42,483,867 5,286,078 1,876,562 Others 8,113,112 3,019,450 5,093,662 - Financial assets designated at fair value through profit or loss Bonds 2,655,588 2,655,588 - - Financial assets at fair value through other comprehensive income Equity instruments at fair value through other comprehensive income Stocks and others 15,905,517 12,372,109 1,158,061 2,375,347 Debt instruments at fair value through other comprehensive income Bonds 151,221,706 94,237,943 54,553,309 2,430,454 Certificates of deposits purchased and others 183,086,577 - 183,086,577 -

Liabilities

Financial liabilities at fair value through profit or loss Held-for-trading financial liabilities 389,875 389,875 - - Financial liabilities designated at fair value through profit or loss 1,520,769 - 1,520,769 -

Derivative financial instruments

Assets

Financial assets at fair value through profit or loss Financial assets mandatorily classified as at FVTPL 22,551,328 202,903 22,070,479 277,946

Liabilities

Financial liabilities at fair value through profit or loss Held-for-trading financial liabilities 24,230,289 686,328 22,662,426 881,535 Financial liabilities designated as at fair value through profit or loss 352,141 - 214,675 137,466

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March 31, 2020 Financial Instruments Measured at Fair Value Total Level 1 Level 2 Level 3 Measured on a recurring basis

Non-derivative financial instruments

Assets

Financial assets at fair value through profit or loss Financial assets mandatorily classified as at FVTPL Stocks $ 2,584,657 $ 1,454,972 $ 34,940 $ 1,094,745 Bonds 58,410,750 51,183,336 4,321,145 2,906,269 Others 14,169,326 3,887,730 10,281,596 - Financial assets designated at fair value through profit or loss Bonds 774,318 774,318 - - Financial assets at fair value through other comprehensive income Equity instruments at fair value through other comprehensive income Stocks and others 11,461,325 9,102,957 1,010,824 1,347,544 Debt instruments at fair value through other comprehensive income Bonds 118,833,760 75,320,277 42,605,083 908,400 Certificates of deposits purchased and others 139,665,671 - 139,665,671 -

Liabilities

Financial liabilities at fair value through profit or loss Held-for-trading financial liabilities 251,806 234,110 9,654 8,042 Financial liabilities designated at fair value through profit or loss 1,562,317 - 1,562,317 -

Derivative financial instruments

Assets

Financial assets at fair value through profit or loss Financial assets mandatorily classified as at FVTPL 20,709,703 414,642 19,445,682 849,379

Liabilities

Financial liabilities at fair value through profit or loss Held-for-trading financial liabilities 21,352,867 167,045 19,796,763 1,389,059 Financial liabilities designated as at fair value through profit or loss 2,898,050 - 2,809,743 88,307

2) Fair value measurement technique

Financial instruments at fair value through profit or loss and financial assets at fair value through other comprehensive income with quoted price in an active market are using market price as fair value; financial instruments above with no quoted price in an active market are estimated by valuation methods. The estimation and assumption of valuation method the Group used is the same as market participants’. The Group can obtain this information.

The basis of fair value estimation used by the Group is as follows:

The fair value of forward contract, interest rate swap contracts, cross currency swap contracts is measured by the discounted cash flow method; the fair value of option is measured by Black & Scholes Model.

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Fair values of forward contracts are estimated on the basis of the foreign exchange rates. Structured product is measured by opponents’ price based on match basis. This method diminished market risk to zero. Fair value of interest rate swap contracts and cross currency swap contracts are estimated on the basis of market quotation.

Fair value are determined as follows: (a) listed stocks and Taipei Exchange stocks and Stocks of Real Estate Investment Trust - closing prices as of the balance sheet date; (b) beneficial certificates (open-end funds), net asset values as of the balance sheet date; (c) bonds - period-end reference prices published by the Taipei Exchange or internal model prices; (d) bank debentures issued overseas and the overseas bonds-period-end reference prices calculated through an internal model or provided by a counter-party.

The Group assessed the active level of market and the adequacy of fair value of emerging stocks and measured the investments at fair value.

The Group assessed the fair value of unlisted counters using the market method, income method and asset method. The above methods use the price and other relevant information generated by the market transactions involving comparable or comparable assets, liabilities or assets and liabilities.

3) Credit risk valuation adjustment is set out below:

Credit risk valuation consists of credit valuation adjustment and debit valuation adjustment.

Credit valuation adjustment adopts for derivative contracts trading in other than exchange market, over-the-counter, and reflects the non-performance risk of counter party on fair value.

Debit valuation adjustment adopts for derivative contracts trading in other than exchange market, over-the-counter, and reflects the non-performance risk of the Group on fair value.

The Group calculated debit and credit valuation adjustment based on models with inputs of Probability of Default (PD) and Loss Given Default (LGD) multiplying Exposure at Default (EAD).

The Group calculated EAD based on mark-to-market fair value of OTC derivative instruments.

The Group takes 60% as the standard LGD of counter parties, and subject to change under the risk nature and data feasibility.

The Group take credit risk valuation adjustment into valuation of the fair value of financial instruments, thus reflect the credit quality of counter parties and the Group.

4) Transfer between Levels 1 and 2

For the three months ended March 31, 2021, the Group transferred part of the NTD government bonds, foreign government bonds, NTD corporate bonds and foreign corporate bonds from Level 1 to Level 2 because the Group determined these investments were not in an active market.

For the three months ended March 31, 2020, the Group transferred part of the NTD government bonds, foreign corporate bonds and foreign bank debentures from Level 1 to Level 2 because the Group determined these investments were not in an active market.

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5) Reconciliation of Level 3 items of financial instruments

a) Reconciliation of Level 3 items of financial assets

For the Three Months Ended March 31, 2021 Gains (Losses) on Valuation Increase Decrease Effects of Beginning Other Transfer to Transfer Out of Items Purchase/ Disposed/Sold Changes in Ending Balance Balance Profit and Loss Comprehensive Level 3 Level 3 Issued (Note 2) Exchange Rate Income (Note 1) (Note 1) Non-derivative financial instruments

Financial assets at fair value through profit or loss Financial assets mandatorily classified as at FVTPL Stock $ 1,389,040 $ 86,366 $ - $ 241,846 $ 50,407 $ (44,058 ) $ (55,745 ) $ - $ 1,667,856 Bonds 1,876,562 (4,075 ) - 344,176 - (50,422 ) (458,166 ) (18,583 ) 1,689,492 Financial assets at fair value through other comprehensive income Equity instruments at FVTOCI Stock 2,375,347 - (27,664 ) - - - - - 2,347,683 Debt instruments at FVTOCI Bonds 2,430,454 - 10,349 - - - - 349 2,441,152

Derivative financial instruments

Financial assets at fair value through profit or loss Financial assets mandatorily classified as at FVTPL 277,946 78,519 ------356,465

For the Three Months Ended March 31, 2020 Gains (Losses) on Valuation Increase Decrease Effects of Beginning Other Transfer to Transfer Out of Items Purchase/ Changes in Ending Balance Balance Profit and Loss Comprehensive Level 3 Disposed/Sold Level 3 Issued Exchange Rate Income (Note 1) (Note 1) Non-derivative financial instruments

Financial assets at fair value through profit or loss Financial assets mandatorily classified as at FVTPL Stock $ 1,239,558 $ (184,282 ) $ - $ 11,241 $ 82,718 $ (45,026 ) $ (9,464 ) $ - $ 1,094,745 Bonds 3,419,351 (45,673 ) - 628,148 - (1,005,315 ) (82,037 ) (8,205 ) 2,906,269 Financial assets at fair value through other comprehensive income Equity instruments at FVTOCI Stock 2,103,813 - (675,431 ) - - (80,838 ) - - 1,347,544 Debt instruments at FVTOCI Bonds 903,366 ------5,034 908,400

Derivative financial instruments

Financial assets at fair value through profit or loss Financial assets mandatorily classified as at FVTPL 679,835 169,544 ------849,379

Note 1: Items are transferred to Level 3 for the three months ended March 31, 2021 and 2020 for lack of observable price (due to the inactive transaction in the securities market); items transferring out of Level 3 are because the price can be attained from the securities market.

Note 2: Including the reduced capital by the investee.

For the three months ended March 31, 2021 and 2020, the gains on valuation included in net income with assets still held were $162,757 and $86,753, respectively.

For the three months ended March 31, 2021 and 2020, the losses on valuation included in other comprehensive income with assets still held were $17,315 and $675,431, respectively.

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b) Reconciliation of Level 3 items of financial liabilities

For the Three Months Ended March 31, 2021 Valuation Increase Decrease Effect of Beginning Gain/Loss Items Purchase/ Transfer to Transfer Out of Changes in Ending Balance Balance Reflected on Disposed/Sold Issued Level 3 Level 3 Exchange Rate Profit or Loss

Derivative financial instruments

Financial liabilities at fair value through profit or loss Held-for-trading financial liabilities 881,535 (418,720 ) - - - - - 462,815 Financial liabilities designated as at fair value through profit or loss 137,466 8,969 95,171 - (143,031 ) - - 98,575

For the Three Months Ended March 31, 2020 Valuation Increase Decrease Effect of Beginning Gain/Loss Items Purchase/ Transfer to Transfer Out of Changes in Ending Balance Balance Reflected on Disposed/Sold Issued Level 3 Level 3 Exchange Rate Profit or Loss

Non-derivative financial instruments

Financial liabilities at fair value through profit or loss Held-for-trading financial liabilities $ - $ 15 $ 8,027 $ - $ - $ - $ - $ 8,042

Derivative financial instruments

Financial liabilities at fair value through profit or loss Held-for-trading financial liabilities 1,107,188 281,871 - - - - - 1,389,059 Financial liabilities designated as at fair value through profit or loss 173,245 (35,883 ) 56,848 - (105,903 ) - - 88,307

For the three months ended March 31, 2021 and 2020, the gains or losses on valuation included in net income with liabilities still held were gain $410,177 and loss $317,577, respectively.

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6) Quantitative information about the significant unobservable inputs (Level 3) used in the fair value measurement

Quantitative information about the significant unobservable inputs is set out below:

March 31, 2021

Significant Interval Financial Instruments Financial Financial Valuation Techniques Unobservable (Weighted- Measured at Fair Value Assets Liabilities Inputs average) Derivative financial instruments

Financial instruments at fair value through profit or loss Financial assets mandatorily classified as at FVTPL and held-for-trading financial liabilities Hybrid FX swap $ 318,695 $ 318,505 Sellers’ quote (Note 1) - structured instruments Others 37,770 144,310 Sellers’ quote (Notes 1 and 2) -

$ 356,465 $ 462,815

Financial instruments designated as at fair value through profit or loss Liabilities for structured $ - $ 98,575 Self-built option pricing model Volatility 3%-36% note (Note 4)

Non-derivative financial instruments

Financial instruments at fair value through profit or loss Financial assets mandatorily classified as at FVTPL Bonds investment $ 1,689,492 $ - Taipei Exchange’s quote or (Note 3) Bloomberg’s quote or sellers’ quote Unlisted common stock 1,667,856 - Market approach or asset Others shareholders 0%-35% approach or market value and discount with liquidity valuation factor of liquidity discount

$ 3,357,348 $ -

Financial assets at fair value through other comprehensive income Equity instruments at FVTOCI Unlisted common stock $ 2,347,683 $ - Market approach or asset Others shareholders 0%-35% approach or income approach and discount or market value with liquidity factor of liquidity valuation discount Debt instruments at FVTOCI Bonds 2,441,152 - Taipei Exchange’s quote or (Note 3) Bloomberg’s quote

$ 4,788,835 $ -

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December 31, 2020

Significant Interval Financial Instruments Financial Financial Valuation Techniques Unobservable (Weighted- Measured at Fair Value Assets Liabilities Inputs average) Derivative financial instruments

Financial instruments at fair value through profit or loss Financial assets mandatorily classified as at FVTPL and held-for-trading financial liabilities Hybrid FX swap $ 270,401 $ 270,239 Sellers’ quote (Note 1) - structured instruments Others 7,545 611,296 Sellers’ quote (Notes 1 and 2) -

$ 277,946 $ 881,535

Financial instruments designated as at fair value through profit or loss Liabilities for structured $ - $ 137,466 Self-built option pricing model Volatility 3%-38% note (Note 5)

Non-derivative financial instruments

Financial instruments at fair value through profit or loss Financial assets mandatorily classified as at FVTPL Bonds investment $ 1,876,562 $ - Taipei Exchange’s quote or (Note 3) Bloomberg’s quote or sellers’ quote Unlisted common stock 1,389,040 - Market approach or asset Others shareholders 0%-35% approach or market value and discount with liquidity valuation factor of liquidity discount

$ 3,265,602 $ -

Financial assets at fair value through other comprehensive income Equity instruments at FVTOCI Unlisted common stock $ 2,375,347 $ - Market approach or asset Others shareholders 0%-35% approach or income approach and discount or market value with liquidity factor of liquidity valuation discount Debt instruments at FVTOCI Bonds 2,430,454 - Taipei Exchange’s quote or (Note 3) Bloomberg’s quote

$ 4,805,801 $ -

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March 31, 2020

Significant Interval Financial Instruments Financial Financial Valuation Techniques Unobservable (Weighted- Measured at Fair Value Assets Liabilities Inputs average) Derivative financial instruments

Financial instruments at fair value through profit or loss Financial assets mandatorily classified as at FVTPL and held-for-trading financial liabilities Hybrid FX swap $ 731,101 $ 730,663 Sellers’ quote (Note 1) - structured instruments Others 118,278 658,396 Sellers’ quote (Notes 1 and 2) -

$ 849,379 $ 1,389,059

Financial instruments designated as at fair value through profit or loss Liabilities for structured $ - $ 88,307 Self-built option pricing model Volatility 3%-30% note (Note 6)

Non-derivative financial instruments

Financial instruments at fair value through profit or loss Financial assets mandatorily classified as at FVTPL and held-for-trading financial liabilities Bonds $ 2,906,269 $ 8,042 Taipei Exchange’s quote or (Note 3) Bloomberg’s quote or sellers’ quote Unlisted common stock 1,094,745 - Market approach or asset Others shareholders 0%-35% approach or market value and discount with liquidity valuation factor of liquidity discount

$ 4,001,014 $ 8,042

Financial assets at fair value through other comprehensive income Equity instruments at FVTOCI Unlisted common stock $ 1,347,544 $ - Market approach or asset Others shareholders 0%-35% approach or income approach and discount or market value with liquidity factor of liquidity valuation discount Debt instruments at FVTOCI Bonds 908,400 - Taipei Exchange’s quote or (Note 3) Bloomberg’s quote

$ 2,255,944 $ -

Note 1: On pairs of back-to-back transactions, consequences of significant unobservable inputs and fair values are not fully captured in practice. Therefore, both inputs are not disclosed.

Note 2: Considering the risk model, the seller’s quotation is provided for reference; consequences of significant unobservable inputs and fair values are not fully captured in practice. Therefore, both inputs are not disclosed.

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Note 3: Due to zero coupon callable bonds and international bonds listed in the OTC market lack liquidity, no observable liquidity reduction factor could be obtained. Therefore, no disclosure has been made.

Note 4: The stock price volatilities of structured notes issued by SinoPac Securities and its’ subsidiaries were between 3% and 36%.

Note 5: The stock price volatilities of structured notes issued by SinoPac Securities s and its’ subsidiaries were between 3% and 38%.

Note 6: The stock price volatilities of structured notes issued by SinoPac Securities s and its’ subsidiaries were between 3% and 30%.

7) Valuation processes for fair value measurements categorized within Level 3

The Group assesses the derivative financial instruments’ fair values according to the quote by counterparties; related assessments are compiled as risk-control reports and inform the manager and the board of directors by month.

The risk management department is responsible for independent testify of fair value of non-derivative financial instruments. The team also use the independent source date to bring the assessment results closer to market conditions, confirm that data sources are independent, reliable, consistent with other resources and represent executable price, calibrate the evaluation model periodically and update input values and data required for the evaluation model to ensure the evaluation results are reasonable.

8) The sensitivity analysis of reasonable, possible and alternative hypothesis for the third level of fair value measurements

The Group evaluates financial instruments reasonably, although using different valuation model and parameter may cause different valuation results. For financial instruments classified as Level 3, the fair value source used lacks observable input, i.e., liquidity reduction factor. If the change of estimated liquidity cost, estimated at 99% confidence interval and based on historical data of market turnover in the past two years, are included in the estimation, the impact on profit and loss is as follows:

March 31, 2021

Changes in the Fair Value Reflected on Current Profit or Item Loss Unfavorable Favorable Change Change Asset

Financial assets at fair value through profit or loss Financial assets mandatorily classified as at fair value through profit or loss $ (80,861) $ 80,861 Financial assets at fair value through other comprehensive income Debt instruments at fair value through other comprehensive income $ (45,194) $ 45,194

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December 31, 2020

Changes in the Fair Value Reflected on Current Profit or Item Loss Unfavorable Favorable Change Change Asset

Financial assets at fair value through profit or loss Financial assets mandatorily classified as at fair value through profit or loss $ (102,226) $ 102,226 Financial assets at fair value through other comprehensive income Debt instruments at fair value through other comprehensive income $ (47,234) $ 47,234

March 31, 2020

Changes in the Fair Value Reflected on Current Profit or Item Loss Unfavorable Favorable Change Change Asset

Financial assets at fair value through profit or loss Financial assets mandatorily classified as at fair value through profit or loss $ (83,973) $ 83,973 Financial assets at fair value through other comprehensive income Debt instruments at fair value through other comprehensive income $ (22,304) $ 22,304 c. Financial instruments not carried at fair value

1) Fair value information of financial instruments

Financial instruments not carried at fair value excluding the table below are reasonably close to their fair value, therefore no additional disclosure, for example: Cash and cash equivalents, due from the Central Bank and call loans to banks, securities purchased under resell agreement, receivables, discounts and loans, some other financial assets, deposits from the Central Bank and banks, securities sold under repurchase agreement, commercial papers payables, payables, deposits and remittances, short-term and long-term borrowings, liability component of preferred stock and other financial liabilities.

March 31, 2021 Carrying Items Amount Fair Value

Investments in debt instruments at amortized cost $ 152,426,235 $ 155,266,135 Bonds payable 52,508,091 53,365,167

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December 31, 2020 Carrying Items Amount Fair Value

Investments in debt instruments at amortized cost $ 162,368,434 $ 167,684,891 Bonds payable 52,510,597 53,424,066

March 31, 2020 Carrying Items Amount Fair Value

Investments in debt instruments at amortized cost $ 143,132,047 $ 145,776,591 Bonds payable 46,133,626 46,921,629

2) Hierarchy information of fair value of financial instruments

March 31, 2021 Assets and Liabilities Item Total Level 1 Level 2 Level 3 Investments in debt instruments at amortized cost $ 155,266,135 $ 55,173,561 $ 100,092,574 $ - Bonds payable 53,365,167 1,793,901 33,970,190 17,601,076

December 31, 2020 Assets and Liabilities Item Total Level 1 Level 2 Level 3 Investments in debt instruments at amortized cost $ 167,684,891 $ 57,444,722 $ 110,240,169 $ - Bonds payable 53,424,066 1,000,495 34,784,947 17,638,624

March 31, 2020 Assets and Liabilities Item Total Level 1 Level 2 Level 3 Investments in debt instruments at amortized cost $ 145,776,591 $ 64,556,638 $ 81,219,953 $ - Bonds payable 46,921,629 2,000,000 30,690,729 14,230,900

3) Methods and assumptions applied in estimating the fair values of financial instruments not carried at fair value are as follows:

a) The carrying amounts of financial instruments such as cash and cash equivalents, due from the Central Bank and call loans to banks, securities purchased under resell agreements, receivables, some of other financial assets, deposits from the Central Bank and banks, commercial papers issued, securities sold under repurchase agreements, short-term borrowings, payables and other financial liabilities approximate their fair value because of the short maturity or the similarity of the carrying amount and future price.

b) Discounts and loans (including non-performing loans): The Group usually uses base rate (floating rate) as loan rate because it can reflect market rate. Thus, using its carrying amount to consider the probability of repossession and estimate its fair value is reasonable. Long-term loans with fixed rate should estimate its fair value by its discounted value of expected cash flow. Because this kind of loans is not significant in this item, using its carrying amount to consider the probability of repossession and estimate its fair value should be reasonable.

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c) The investments in debt instruments at amortized cost: The debt instruments investments at amortized cost with quoted price in an active market are using market price as fair value; the debt instruments investments at amortized cost with no quoted price in an active market are estimated by valuation methods or opponent’s price.

d) Deposits and remittances: Considering banking industry’s characteristic, since deposits have one-year maturity and measured by market rate (market value), using carrying value to assess fair value is reasonable. For deposits with three-years maturity are measured by discounted cash flow, using carrying value to assess fair value is reasonable.

e) Bonds payable: Bonds payable with quoted price in an active market use market price or price quotations from counterparties to estimate fair value; bonds payable with no quoted price in an active market are estimated by valuation methods or based on prices of similar instruments.

f) Investments accounted for using equity method: The fair value of unquoted equity investments and investments accounted for using equity method cannot be reliably measured because there is no quoted price in an active market, the interval of variable fair value measurements is significant or the probability of the estimations in the variable interval cannot be reasonably assessed. Hence, no fair value can be disclosed.

g) Liability components of preferred stocks: These liability components are interest-bearing liabilities with floating interest rates; thus, their carrying amounts represent fair value.

h) Long-term borrowings: These borrowings are interest-bearing liabilities with floating interest rates; thus, their carrying amounts represent fair value.

50. FINANCIAL RISK MANAGEMENT

Bank SinoPac

a. Overview

Bank SinoPac and its subsidiaries document the risk management policies, including overall operating strategies and risks control philosophy. Bank SinoPac and its subsidiaries’ overall risk management policies are to minimize the possibility of potential unfavorable factors. The board of directors approves the documentation of overall risk management policies and specific risk management policies; including credit risk, liquidity risk, market risk, operational risk, derivative instruments transactions and managements. The board of directors reviews the policies regularly, and reviews the operation to make sure Bank SinoPac and its subsidiaries’ policies are executed properly.

b. Risk management framework

The board of directors is the top risk supervisor of Bank SinoPac and its subsidiaries. The board not only reviewed risk management policies and rules but also authorized management to be in charge of daily risk management work. Bank SinoPac has set up a risk management committee under the chairman of the Board to be responsible for the services above; Bank SinoPac has also set up a credit committee in the board of directors to review the policies and supervise the abnormal cases. The credit committee also helps the board of directors approve cases over general manager’s authority under the board’s authorization.

The board of directors authorized Bank SinoPac and its subsidiaries’ management to supervise risk management activities, evaluate the performance and confirm every risk management agent having essential code of ethic and professional skills. Internal audit is responsible for the periodic review of risk management and the control environment, and then reports the results directly to the board of directors.

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Bank SinoPac has set up a risk management department to control risk management policies, establish rules, plan and set up risk management system. The risk management department executes these policies based on the board’s approval, then reports the results and performance reviews to the authority or the board. c. Credit risk

1) Sources and definitions of credit risk

Credit risk is the risk of financial loss if a customer or counterparty fails to meet an obligation under a contract. It arises principally from lending, trade finance, treasury, and credit derivatives. The issuer’s credit risk should be considered as part of the market risk when the investment target is securities in an active market.

2) Policies and strategies

Bank SinoPac and its subsidiaries established policies based on operating goals and strategies, business plans and risk management goals authorized by the board of directors. These policies were established to lower potential financial losses, minimize risks and rewards to raise the performance and protect shareholders’ equity through appropriate managing policies and procedures based on risk-diversification principle.

Bank SinoPac and its subsidiaries risk strategy is to strengthen the credit risk management framework, establish complete credit verification system and procedure, develop and use efficient and scientific credit risk managing instruments to identify, measure, manage and supervise credit risks. These strategies transparentize, systematize, specialize and formalize credit risk management to manage loans, nonperforming assets and every kind of assets’ credit risk.

Bank SinoPac and its subsidiaries have set up policies of main risks as prime direction based on legislations and operational goals. These policies include risk appetite, management goals, organization structure of responsibility and accountability, measurement, evaluation, supervision and report procedure of risks. These policies are established to reach the purposes of consistency and centralized management and are put into practice in corporate government.

Credit risk management procedures and measurements are as follows:

a) Loan business (includes loan commitment and guarantee)

Loan business classification and qualities are as follows:

i. Classification

Under the “Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Nonperforming/Nonaccrual Loans” (the Regulations) issued by the Banking Bureau, Bank SinoPac evaluates credit losses on the basis of the estimated collectability. In accordance with the Regulations, credit assets are classified as normal assets, assets that require special mentioned, assets with substandard, assets with doubtful collectability, and assets on which there is loss.

Bank SinoPac (China) Ltd. strictly follows the “Guidance for the Risk-Based Loan Categorization” established by the China Banking Regulatory Commission. It divides its loans into five categories based on a debtor’s ability to repay the full principal and interest on time. The five categories are normal, special mention, substandard, doubtful, and loss. The last three categories are considered nonperforming loans.

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ii. Credit quality level

Bank SinoPac and its subsidiaries sets up credit quality level (ex. internal credit risk assessment model, credit assessment rules) based on business characteristic and scale to manage risks.

In order to measure clients’ credit risks, Bank SinoPac and its subsidiaries established credit risk assessment model for corporate banking, personal banking and consumer banking through statistic methods, professional judgment and clients’ information. Every model should be reviewed regularly to examine whether the calculations match to the actual conditions or not, then Bank SinoPac and its subsidiaries will adjust parameters to optimize the results.

For personal banking and consumer banking customers, every case will be reviewed individually to assess default risks except that micro-credit and credit card business should be assessed by internal credit assessment model.

b) Investment business

Bank SinoPac and its subsidiaries manages and identifies credit risks of debt investment through credit ratings by outsiders, credit qualities of the debt, regional conditions and counterparties’ risks.

Bank SinoPac and its subsidiaries carry out derivative instrument transactions with counterparties in financial industry which are almost above the investment level. Bank SinoPac and its subsidiaries would control credit risks based on counterparties’ credit lines; counterparties with no credit ratings or at non-investment level should be reviewed individually. Normal customers’ credit exposure positions should be controlled by approved derivative instrument credit line and condition based on normal credit procedure.

3) Credit risk hedge or mitigation policies

a) Collateral

Bank SinoPac and its subsidiaries have set up several standards dealing with credit exposures and collateral requirements in order to mitigate credit risks and maintain creditor’s rights. The standards cover areas such as disposal of collateral, acceptance of real estate as collateral, real estate appraisal; credit policies for every commodity to regulate collateral categories, appraisals, procedures, deduction percentages, loan rate, loan-to-value ratio, maturity analysis, control, management and disposal.

To maintain collateral’s effectiveness, Bank SinoPac and its subsidiaries supervise and manage the collateral by examining the usage, custody and maintenance of collateral regularly and irregularly to avoid selling, leasing, pledging, moving and disposing collaterals without authorization. Once the loan is due but will be extended, the contract should be seen as a new case and the collateral should be revalued.

b) Credit risk limits and credit risk concentration control

Bank SinoPac and its subsidiaries manage credit line and concentration of credit assets through appropriate information managing system that gathers information on credit exposure to centralized conditions, exposure of credit asset combinations, including national risk, large credit exposure, credit line of single corporation, group and industry. For cases approaching credit limit, the concerned unit should report to management and make control strategies; for cases exceeding credit limit, the management should take appropriate action and the Group should review the credit approval process and authorization level.

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c) Agreement of net settlement

Bank SinoPac and its subsidiaries often makes gross settlement on transactions, sign net settlement contract with other counterparties or cancel every transactions and make net settlement when default occurs to mitigate credit risk.

4) The determination since the initial recognition of the credit risk has increased significantly

a) Loan business

Bank SinoPac and its subsidiaries assess the change in the probability of default of various credit assets during the lifetime on each reporting date to determine if the credit risk has increased significantly since the initial recognition.

In order to make this assessment, the main consideration is reasonable and supportable information that the credit risk has increased significantly since the initial recognition (including forward-looking information), key indicators include:

i. Quantitative indicators

Information on overdue conditions: When the contractual payments were overdue for more than 30 days to overdue 89 days, it has been determined that credit risk of the financial assets after the initial recognition was significantly increased.

ii. Qualitative indicators

i) Although the loan has not been repaid or due on the maturity date, there are other bad debts and the asset classification is not normal.

ii) The loan review report belonging to an abnormal credit.

iii) The credit card transaction with Bank SinoPac is abnormal.

On the basis of various credit asset evaluation benchmark days of Bank SinoPac and its subsidiaries, if the credit risk does not increase significantly and not belong to an impaired financial asset, it can be determined that the credit risk does not increase significantly after the initial recognition.

b) Investment business

Bank SinoPac and its subsidiaries adopts external credit rating scale to a measure whether the credit risk after the initial recognition is significantly increased for debt instrument at amortized cost and debt instrument measured at fair value through other comprehensive income.

The external credit rating is determined by international credit rating agency. When the external credit rating changes and the following situations occur, the credit risk is regarded to have significantly increased after the initial recognition.

i. From investment grade (Aaa-Baa3) to non-investment grade (Ba1 (inclusive) or less, without Ca-D)

ii. From grade Ba1-Ba3 to grade B1-Caa3

iii. The bonds in grade B1-Caa3 at initial recognition.

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Taiwan Fitch Credit Moody’s S&P Fitch Ratings (Taiwan) Aaa AAA AAA Aa1 AA+ AA+ Aa2 AA AA Aa3 AA- AA- A1 A+ A+ twAAA AAA (twn) First grade A2 A A twAA+ AA+ (twn) A3 A- A- twAA AA (twn) Baa1 BBB+ BBB+ twAA- AA- (twn) Baa2 BBB BBB twA+ A+ (twn) Baa3 BBB- BBB- twA A (twn) Ba1 BB+ BB+ twA- A- (twn) Ba2 BB BB twBBB+ BBB+ (twn) Second grade Ba3 BB- BB- twBBB BBB (twn) twBBB- BBB- (twn)

B1 B+ B+ twBB+ BB+ (twn) B2 B B twBB BB (twn) B3 B- B- twBB- BB- (twn) twB+ B+ (twn) Third grade twB Caa1 CCC+ CCC+ twB- B (twn) Caa2 CCC CCC twCCC+ B- (twn) Caa3 CCC- CCC- twCCC CCC+ (twn) Ca CC CC twCCC- CCC (twn) C C C twCC CCC- (twn) SD DDD twC CC (twn) D DD twSD C (twn) R D twD DDD (twn) Fourth grade twR DD (twn) D (twn) P-1 A-1 F-1 P-2 A-2 F-2 twA-1 F1 (twn) P-3 A-3 F-3 twA-2 F2 (twn)

The external rating of each credit rating agency refers to the conversion chart of Basel III.

If a bond has multiple credit ratings, the lowest rating of such bond will be taken as its credit rating; if the bond itself has no credit rating, the guarantor’s credit rating will be taken; if there is no guarantor, the issuer’s credit rating will be taken. If the bond’s, guarantor’s, or issuer’s external credit rating is not available, the external rating of the bond is based on the internal rating of the bond in SPH.

5) Definition of financial asset default and credit impairment

The definition of financial asset default by Bank SinoPac is the same as financial asset credit impairment. If one or more of the following conditions are satisfied, Bank SinoPac determines that the financial asset has defaulted and has credit impairment:

a) Quantitative indicators

Principal or interest is overdue for more than three months.

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b) Qualitative indicators

If there is evidence that the debtor will not be able to pay the contract money, or the debtor is facing significant financial difficulties, for examples:

i. The main debtor has been chased, or the collateral has been disposed of.

ii. The main debtor has not paid short-term advance to Bank SinoPac.

iii. The debtor applies for debt negotiation, debt extension and debt restructuring, etc. due to financial difficulties.

iv. Other situation with objective evidence of impairment.

Bond investment belongs to credit ratings Ca-D bonds when the following situations occur:

i. The issuer probably cannot repay the principal or interest on the bond maturity date.

ii. It could be objectively judged that the issuer will not be able to repay the principal and interest of the bond on time before maturity.

iii. Probability that the debtor will enter into bankruptcy or undergo financial reorganization.

iv. The issuer encounters bankruptcy or being reorganized or taken over due to financial difficulties before bond maturity.

The above definition of default and credit impairment applies to all financial assets held by Bank SinoPac. It is consistent with the definition of relevant financial assets for internal credit risk management applying to relevant impairment assessment model as well.

6) Write-off policy

If one of the following situations occurred, overdue and nonperforming loans of Bank SinoPac, after deducting any estimated recoverable part, will be written off as bad debts.

a) All or part of creditor’s right couldn’t recover due to dissolution, escape, settlement, bankruptcy or other reasons of the debtors.

b) The value of collateral and properties of the main and subordinate debtors are very low, compensation are not available after deducting the first mortgage, or it is unbeneficial that execution fee is close to or may exceed Bank SinoPac’s reimbursable amount.

c) The collateral and the properties of the main and subordinate debtors are unsold after multiple discount auctions and not beneficial to Bank SinoPac.

d) Overdue and nonperforming loans have not been recovered after more than 2 years from the maturity date.

Bank SinoPac has procedures for recording accounts written-off and for keeping such records for inspection. Relevant business department continues to watch for movements of the main and subordinate debtors all the time. If there is any property available for execution, Bank SinoPac will take appropriate legal action.

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7) Amendment to financial asset contract cash flow

Bank SinoPac and its subsidiaries will amend financial asset contract cash flows when borrowers are in financial difficulties, as a result of improvement of problematic debtors’ recovery rate or for maintenance of customer relationships. Financial asset contract cash flows amendment include extension of contract period, interest payment date modification, contract interest modification, or exemption from certain requirements of part of debts. The amendment could result in Bank SinoPac and its subsidiaries dispose existing financial asset and recording of new financial asset at fair value.

If the modification of the contractual cash flows of financial asset does not result in derecognition of asset, Bank SinoPac and its subsidiaries will assess whether the credit risk of financial asset has increased significantly by comparing the following:

a) Risk of breaching the contract on the reporting date (based on revised contract terms).

b) The probability of default in the original recognition (based on the original unmodified contract terms).

Bank SinoPac and its subsidiaries will consider the borrower’s subsequent payment in accordance with the revised terms and several relevant behavior indicators to assess the probability of default on the revised financial asset, and confirm whether the contract modification improves or restore the ability to recover related contract payments of Bank SinoPac and its subsidiaries.

8) Measurement of expected credit losses

For the purpose of measuring expected credit losses, Bank SinoPac and its subsidiaries will look into the business attributes of the credit assets (such as corporate finance, personal finance, consumer finance, e-finance, etc.) as well as the size of the company, types of collateral, and remaining period of maturities, etc. and group the credit risk characteristics into three stages: No significant increase in credit risk (stage 1), significant increase in credit risk (stage 2), and credit impairment (stage 3) according to the credit risk level at the valuation date.

Bank SinoPac and its subsidiaries provide allowance for 12-month expected credit losses when financial instruments did not have a significant increase in credit risk since the initial recognition. Financial instruments are provided with allowance for full-lifetime expected credit losses when there is significant increase in credit risk or credit impairment since the initial recognition.

To measure the expected credit losses, Bank SinoPac and its subsidiaries take into account the borrower’s probability of default (“PD”) for the next 12 months and the period of existence, and include the loss given default (“LGD”). Multiply by the Exposure at default (“EAD”) and taking into account the impact of the time value of money, the expected credit losses for 12 months and duration are calculated.

Bank SinoPac assesses the amount of Exposure at default of lending based on outstanding loan principal of customers, interest receivable and short-term advances at the end of each period. In addition, when estimating the expected credit losses of lending financing commitments, Exposure at default used to calculate expected credit losses is determined based on the conditions and days of the financing commitment and by reference to the credit risk conversion factor of Basel Capital Accord.

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Probability of default is the default probability of the borrower, and the default loss rate is the rate of loss caused by default of the borrower. The default probability and default loss rate used in the impairment assessment and calculation of expected credit losses of Bank SinoPac loan business are based on internal historical information (such as credit loss experience, etc.) of each borrower group, with adjustments to the historical data based on the current observable data and forward-looking economic information. The expected loss of debt instrument investment is calculated according to the default rate information and external recovery rate information published by the external credit rating agencies.

9) Forward-looking information considerations

a) Credit assets

Bank SinoPac takes forward-looking information into account when determining whether the credit risk of the credit assets has increased significantly since the initial recognition and measures the expected credit losses. The impact of COVID-19 was also considered in the forward looking information. Bank SinoPac uses historical data and expert judgments to analyze and identify the economic factors that affect the credit risk and expected credit losses of various asset groups, such as GDP and unemployment rate. Bank SinoPac obtains quarterly historical data and forecast information of the relevant economic factors from international financial organizations (such as the International Monetary Fund, IMF), and Directorate General of Budget, Accounting and Statistics, Executive Yuan. This forecast information contains the best estimate of the economic situation in the next five years.

The relevant economic factors and their impact on PD differ among different credit business. Bank SinoPac classifies credit product types as:

i. Enterprise, sovereignty, and bank credit exposure. ii. Home Mortgage Insurance credit exposure. iii. Qualified cycling retail credit exposure. iv. Other retail credit exposure.

With reference to the Basel Capital Accord IRB method, the correlation coefficient of various types of credit products and risk category is calculated and forward-looking information is used to adjust the default probability.

b) Investment business

For the debt instrument investment measured at amortized cost and measured at fair value through other comprehensive income, one of the indicators significant increase in credit risk is the quantified change in the external rating class announced by the international credit rating agencies, and the measurement of expected credit losses is based on the information of the default ratings and loss given default regularly announced by external rating agencies and international credit rating agencies.

As international credit rating agencies have considered forward-looking information in assessing credit ratings, Bank SinoPac’s assessment of forward-looking information is appropriate, and is included in Bank SinoPac’s assessment of expected credit losses.

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10) The maximum credit exposure of the financial instruments held by Bank SinoPac and Bank SinoPac (China) Ltd.

Maximum credit exposures of assets on balance sheet (excluding collaterals and other credit enhancement instruments) are almost equivalent to the carrying value. The maximum credit exposures (excluding collaterals, other credit enhancement instruments and undrawn maximum exposure) off balance sheet were as follows:

The Maximum Credit Exposure Off-Balance Sheet Items December 31, March 31, 2021 March 31, 2020 2020 Undrawn credit card commitments $ 201,445,081 $ 197,690,182 $ 187,928,156 Undrawn loan commitments 38,378,312 37,293,962 28,873,040 Guarantees 35,256,084 31,020,811 22,466,763 Standby letter of credit 7,344,439 6,099,606 3,781,760

Bank SinoPac and Bank SinoPac (China) Ltd. adopt a strict and continuous evaluation procedure and review the result regularly to control and minimize off-balance sheet credit risk exposures.

The contract amount in the credit business and financial instruments may not be fully paid before the maturity; therefore, the contract amount is not deemed as the amount of future cash outflow. In other words, the future cash demand is lower than contract amount. If the credit limit is exceeded and collaterals lose their value, the amount of credit risk is equal to the contract amount which is the possible maximum loss.

11) Credit risk exposures concentration of Bank SinoPac and its subsidiaries

When financial instruments transactions concentrated on one counterparty or several counter-parties, which engaged in similar business activities, had similar economic characteristics and abilities to execute contracts, the credit risk concentration arises.

Credit risk concentrations can arise in Bank SinoPac and its subsidiaries’ assets, liabilities or off-balance sheet items through the execution or processing of transactions (either product or service) or through a combination of exposures across these broad categories. It includes credit, loan and deposits, call loan to banks, investment, receivables and derivatives. Bank SinoPac and its subsidiaries maintain a diversified portfolio to limit its exposure to any geographic region, country or individual creditor and monitor its exposures continually. Bank SinoPac and its subsidiaries’ most significant concentrations of credit risk are summarized by industry, region and collateral as follows:

a) By industry

March 31, 2021 December 31, 2020 March 31, 2020 Industries Amount % Amount % Amount % Private enterprise $ 564,620,578 46.94 $ 530,596,516 45.88 $ 513,293,836 47.38 Public enterprise 9,697,579 0.81 8,382,928 0.72 7,157,921 0.66 Government sponsored enterprise and business 51,054,351 4.24 44,352,603 3.84 12,937,159 1.20 Nonprofit organization 208,726 0.02 208,833 0.02 257,351 0.02 Private 564,546,666 46.93 558,253,076 48.27 530,104,488 48.93 Financial institutions 12,744,684 1.06 14,647,456 1.27 19,572,445 1.81 Total $ 1,202,872,584 100.00 $ 1,156,441,412 100.00 $ 1,083,323,200 100.00

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b) By region

March 31, 2021 December 31, 2020 March 31, 2020 Regions Amount % Amount % Amount % Domestic $ 968,629,149 80.53 $ 933,500,404 80.72 $ 886,335,256 81.82 Asia 118,870,566 9.88 113,418,378 9.81 106,715,013 9.85 North America 78,876,255 6.56 72,737,224 6.29 57,357,577 5.29 Others 36,496,614 3.03 36,785,406 3.18 32,915,354 3.04 Total $ 1,202,872,584 100.00 $ 1,156,441,412 100.00 $ 1,083,323,200 100.00

c) By collateral

March 31, 2021 December 31, 2020 March 31, 2020 Collaterals Amount % Amount % Amount % Credit $ 422,245,070 35.10 $ 395,440,562 34.19 $ 362,362,547 33.45 Secured Stocks 5,678,996 0.47 5,940,428 0.51 4,424,558 0.41 Bonds 15,441,903 1.29 15,316,260 1.32 17,361,346 1.60 Real estate 689,236,488 57.30 671,963,801 58.11 638,078,701 58.90 Movable collaterals 45,258,922 3.76 44,290,787 3.83 41,515,112 3.83 Guarantees 13,959,900 1.16 12,781,343 1.11 8,751,725 0.81 Others 11,051,305 0.92 10,708,231 0.93 10,829,211 1.00 Total $ 1,202,872,584 100.00 $ 1,156,441,412 100.00 $ 1,083,323,200 100.00

12) The financial impact of credit risk mitigation policies

a) Collateral and other credit enhancements

Bank SinoPac and its subsidiaries implement a series of policies and measures to reduce credit risk for loan business; one of the commonly used methods is to require borrowers to provide collateral. Bank SinoPac and its subsidiaries have designed and follows procedures for enforcing rights to collateral and the valuation, management, and disposal of collateral. The main types of collateral for financial assets of Bank SinoPac and its subsidiaries are as follows:

i. Real estate mortgage loan.

ii. Derivatives margin agreement.

The credit contract has provisions for the preservation of debts and guarantees, which clearly define when credit incidents occur, Bank SinoPac and its subsidiaries is be able to reduce the credit limit, shorten the loan repayment deadline or treat all of them as due, so as to reduce the credit risk.

Other collateral for non-loan business depends on the nature of the financial instrument. Only asset-based securities and other similar financial instruments are secured by a group of asset pooled financial instruments.

There was no material change in the collateral policy of Bank SinoPac, and there was no significant change in the overall collateral quality on the balance sheet date.

b) Amount of collateral for impaired financial assets

Bank SinoPac and its subsidiaries closely observe the value of the collateral of the financial instruments and consider adequacy of the allowance for the credit-impaired financial assets. On March 31, 2021, December 31, 2020 and March 31, 2020, the amount of discounts and loans were $6,727,996, $4,924,923 and $4,010,949, with a provision for loss allowance of $1,702,580, $999,303 and $1,049,846 under IFRS 9 Stage 3, and credit guarantees, real estate, movable assets or certificates of deposit, etc., which reduced the potential loss, amounted to $3,274,726, $2,082,399 and $2,326,869.

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c) The contracted amount of financial assets that have been written off and still have recourse activities

As of March 31, 2021, December 31, 2020 and March 31, 2020, the contracted amount of financial assets that have been written off by Bank SinoPac and still have recourse activities is $46,549,662, $46,629,546 and $47,213,755.

13) Management policies of collaterals assumed

Collaterals assumed are classified as other assets. According to regulations, Bank SinoPac should dispose of collaterals within four years. There are no assumed collaterals of Bank SinoPac and its subsidiaries as of March 31, 2021, December 31, 2020 and March 31, 2020, respectively.

14) Disclosures prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Public Banks

a) Overdue loans and receivables

Date March 31, 2021 Nonperforming NPL Ratio Loan Loss Reserves Coverage Ratio Items Loan (NPL) Total Loans (Note 2) (LLR) (Note 3) (Note 1) Secured $ 469,115 $ 236,360,767 0.20% $ 2,990,031 637.38% Corporate loan Unsecured 760,648 384,789,762 0.20% 4,522,115 594.51% Mortgage (Note 4) 217,023 302,358,025 0.07% 4,639,620 2,137.85% Cash card 37 3,688 1.00% 380 1,027.03% Consumer loan Micro credit (Note 5) 69,994 24,546,847 0.29% 395,793 565.47% Secured 449,988 220,413,602 0.20% 2,399,490 533.23% Others (Note 6) Unsecured 1,040 2,373,266 0.04% 26,105 2,510.10% Total 1,967,845 1,170,845,957 0.17% 14,973,534 760.91% Overdue Accounts Allowance for Delinquency Ratio Coverage Ratio Receivables Receivables Credit Losses Credit card $ 22,934 $ 17,990,311 0.13% $ 201,178 877.20% Accounts receivable - factoring with no recourse (Notes 7 and 8) - 11,454,530 - 130,971 -

Date March 31, 2020 Nonperforming NPL Ratio Loan Loss Reserves Coverage Ratio Items Loan (NPL) Total Loans (Note 2) (LLR) (Note 3) (Note 1) Secured $ 446,754 $ 204,996,164 0.22% $ 2,609,607 584.13% Corporate loan Unsecured 506,418 331,040,701 0.15% 4,098,170 809.25% Mortgage (Note 4) 465,555 296,211,669 0.16% 4,566,962 980.97% Cash card - 5,213 - 133 - Consumer loan Micro credit (Note 5) 68,318 20,828,827 0.33% 245,023 358.65% Secured 530,346 206,167,696 0.26% 2,233,799 421.20% Others (Note 6) Unsecured 3,576 2,424,705 0.15% 27,934 781.15% Total 2,020,967 1,061,674,975 0.19% 13,781,628 681.93% Overdue Accounts Allowance for Delinquency Ratio Coverage Ratio Receivables Receivables Credit Losses Credit card $ 44,355 $ 16,692,786 0.27% $ 211,824 477.57% Accounts receivable - factoring with no recourse (Notes 7 and 8) - 10,402,500 - 125,513 -

Note 1: For loan business: Overdue loans represent the amounts of overdue loans reported in accordance with “Regulations Governing the Procedures for Banking Institutions to Evaluate Assets and Deal with Nonperforming/Non-accrual Loans”.

For credit card business: Overdue receivables are regulated by the Banking Bureau letter dated July 6, 2005 (Ref. No. 0944000378).

Note 2: For loan business: NPL ratio = NPL ÷ Total loans.

For credit card business: Delinquency ratio = Overdue receivables ÷ Accounts receivable.

Note 3: For loan business: Coverage ratio = LLR ÷ NPL.

For credit card business: Coverage ratio = Allowance for credit losses ÷ Overdue receivables.

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Note 4: Household mortgage loan is a financing to be used by a borrower to buy, build, or fix a dwelling, and the dwelling owned by the borrower, spouse, or children is used to fully secure the loan.

Note 5: Micro credit loan is regulated by the Banking Bureau letter dated December 19, 2005 (Ref. No. 09440010950) and is not credit and debit cards’ micro credit loan.

Note 6: Others in consumer loans refers to secured or unsecured loans excluding mortgage, cash card, micro credit, and credit cards.

Note 7: For accounts receivable - factoring with no recourse, as required by the Banking Bureau letter dated July 19, 2005 (Ref. No. 0945000494), which is equal to dated August 24, 2009 (Ref. 09850003180), and allowance for bad debts is recognized once no compensation is made from factoring or insurance within three months.

Note 8: Part of nonperforming receivables transferred from other than loans were included. b) Excluded NPLs and excluded overdue receivables

Date March 31, 2021 March 31, 2020 Excluded Excluded Excluded Excluded Items Overdue Overdue NPL NPL Receivables Receivables As a result of debt negotiation and loan agreement (Note 1) $ 727 $ 31,733 $ 1,018 $ 44,857 As a result of consumer debt clearance (Note 2) 18,665 636,147 13,080 663,368 Total $ 19,392 $ 667,880 $ 14,098 $ 708,225

Note 1: The disclosure of excluded NPLs and excluded overdue receivables resulting from debt negotiations and loan agreement is based on the Banking Bureau letter dated April 25, 2006 (Ref. No. 09510001270).

Note 2: The disclosure of excluded NPLs, pre-mediation and excluded overdue receivables resulting from consumer debt clearance is based on the Banking Bureau’s letter dated September 15, 2008 (Ref. No. 09700318940) and September 20, 2016 (Ref. No. 10500134790).

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c) Concentration of credit extensions

Year March 31, 2021 Total Credit Percentage Rank Industry Category (Note 2) Consists of of Net (Note 1) Loans (Note 3) Worth (%) 1 A Group (packaging and testing of semi-conductors) $ 11,442,732 8.11 2 B Group (manufacture of computers) 11,029,751 7.81 3 C Group (manufacture of computers) 5,542,030 3.93 4 D Group (real estate development activities) 5,445,128 3.86 5 E Group (other metalworking activities) 5,000,000 3.54 6 F Company (rolling of extruding of iron and steel) 4,990,265 3.54 7 G Group (manufacture of other computer peripheral 4,565,224 3.23 equipment) 8 H Group (metal casting) 4,043,825 2.86 9 I Group (real estate development activities) 3,739,000 2.65 10 J Group (real estate development activities) 3,528,000 2.50

Year March 31, 2020 Total Credit Percentage Rank Industry Category (Note 2) Consists of of Net (Note 1) Loans (Note 3) Worth (%) 1 A Group (other holding companies) $ 9,721,539 7.26 2 B Group (manufacture of computers) 8,332,337 6.22 3 C Group (manufacture of computers) 6,940,904 5.18 4 D Group (water transportation) 6,132,875 4.58 5 E Group (rolling of extruding of iron and steel) 5,344,329 3.99 6 F Company (other metalworking activities) 5,000,000 3.73 7 G Group (manufacture of computers) 4,855,598 3.63 8 H Group (real estate development activities) 4,546,111 3.39 9 I Group (metal casting) 4,322,438 3.23 10 J Group (real estate development activities) 3,478,000 2.60

Note 1: Ranking of top 10 groups (excluding government or state - owned enterprises) whose total credit consists of loans. If the borrower is a member of any of the above groups, the total amount of credits of the entire group must be listed and disclosed by code and line of industry.

Note 2: Groups were those as defined in Articles 6 of the Supplementary Provision to the Taiwan Stock Exchange Corporation’s Rules for Review of Securities Listings Law.

Note 3: Total credit is the sum of all loans (including import and export bills negotiated, discounts, overdrafts, short-term loans, short-term secured loans, marginal receivables, medium-term loans, medium-term secured loans, long-term loans, long-term secured loans, and nonperforming loans), exchange bills negotiated, accounts receivable factored without recourse, acceptances receivable, and guarantee deposit issued. d. Liquidity risk management

1) Definition of liquidity risk

Liquidity is Bank SinoPac’s ability to provide sufficient funding for asset growth and matured liabilities. Liquidity risk means the risk banks cannot obtain sufficient fund with reasonable cost and correct timing, and then suffer losses on earnings or capital.

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The measures of enhancing cash liquidity are holding sufficient cash and highly liquid able securities, adjusting maturities differences, savings absorption or arranging borrowings, etc.

a) Strategies

Bank SinoPac established a sound liquidity risk managing system based on business’ scale and characteristic, assets and liabilities’ structure, funding strategies and diversity of funding sources to ensure it would have sufficient funding for obligations in normal or worst scenario.

b) Risk measurement

Bank SinoPac uses quantitative analysis to manage liquidity risk. Cash flow deficit and liquidity management goals are used as measure instruments to report monthly the analysis results to the assets and liabilities managing committee.

Stress testing is done to ensure Bank SinoPac would have sufficient funding for asset growth and matured liabilities despite any internal operating problems or adverse changes in the financial environment.

c) Risk monitoring

Bank SinoPac established a liquidity deficit limit and an early warning system to detect liquidity risk and take appropriate action at the right time.

Bank SinoPac has formed a crisis management team to handle any liquidity crisis. The general manager is the team convener, and the managers of the financial obligation department and the risk management department are the team members. The general manager can also assign the managers of related departments to join the team, depending on the situation. Members’ rights and responsibilities are listed in “Bank SinoPac’s Liquidity Risk Emergency Response Rule”.

2) Maturity analysis of non-derivative financial liabilities held to manage liquidity risk

Cash outflow analyses of non-derivative financial liabilities of Bank SinoPac and Bank SinoPac (China) are summarized in the following tables. The amounts are provided on a contract cash flow basis so some of the amounts will not match the amounts in the consolidated balance sheets.

Bank SinoPac

March 31, 2021 0-30 Days 31-90 Days 91-180 Days 181 Days to 1 Year Over 1 Year Total Deposits from the Central Bank and banks $ 16,235,410 $ 25,344,499 $ 36,499,086 $ 5,044,531 $ - $ 83,123,526 Due to the Central Bank and banks 9 20 28,523 89,875 - 118,427 Financial liabilities at fair value through profit or loss - - - - 1,600,059 1,600,059 Securities sold under repurchase agreements 7,512,560 2,937,705 1,137,069 2,029,341 - 13,616,675 Payables 4,705,412 662,469 246,112 1,428,932 2,032,852 9,075,777 Deposits and remittances 1,011,479,723 158,558,222 212,644,100 260,679,397 31,447,980 1,674,809,422 Bank debentures 57,182 70,556 5,692,379 365,099 41,932,910 48,118,126 Other financial liabilities - - 741,946 - - 741,946

December 31, 2020 0-30 Days 31-90 Days 91-180 Days 181 Days to 1 Year Over 1 Year Total Deposits from the Central Bank and banks $ 27,918,163 $ 32,615,631 $ 10,946,188 $ 66,940 $ - $ 71,546,922 Due to the Central Bank and banks 7 51,894 7 28,501 - 80,409 Financial liabilities at fair value through profit or loss - - - - 1,598,698 1,598,698 Securities sold under repurchase agreements 2,296,713 1,344,465 63,601 - - 3,704,779 Payables 6,603,613 830,208 239,414 275,820 2,535,476 10,484,531 Deposits and remittances 1,012,653,855 189,986,177 143,944,662 260,705,696 26,813,256 1,634,103,646 Bank debentures 6,079 2,713,513 127,738 3,372,059 42,088,329 48,307,718 Other financial liabilities - - - 743,236 - 743,236

March 31, 2020 0-30 Days 31-90 Days 91-180 Days 181 Days to 1 Year Over 1 Year Total Deposits from the Central Bank and banks $ 28,406,572 $ 20,925,688 $ 7,213,644 $ 1,649,513 $ - $ 58,195,417 Financial liabilities at fair value through profit or loss - - - - 1,698,047 1,698,047 Securities sold under repurchase agreements 6,290,191 419,509 6,233 - - 6,715,933 Payables 8,049,200 373,483 108,595 1,270,354 2,777,456 12,579,088 Deposits and remittances 820,487,173 183,908,474 195,454,019 219,934,752 27,955,607 1,447,740,025 Bank debentures 60,177 73,624 1,381,314 3,758,693 33,645,949 38,919,757

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Bank SinoPac (China) (In Thousands of CNY)

181 Days to 1 March 31, 2021 0-30 Days 31-90 Days 91-180 Days Over 1 Year Total Year Deposits from the Central Bank and banks $ 275,425 $ 849,518 $ 905,899 $ 206,803 $ 134,506 $ 2,372,151 Payables 332,105 303,884 164,190 82,002 - 882,181 Deposits and remittances 2,966,929 778,291 1,538,318 767,154 103,340 6,154,032

(In Thousands of CNY)

181 Days to 1 December 31, 2020 0-30 Days 31-90 Days 91-180 Days Over 1 Year Total Year Deposits from the Central Bank and banks $ 258,733 $ 524,024 $ 426,806 $ 598,620 $ - $ 1,808,183 Payables 722,921 136,211 1,560 26,007 - 886,699 Deposits and remittances 4,540,601 808,328 372,027 1,034,790 100,369 6,856,115

(In Thousands of CNY)

181 Days to 1 March 31, 2020 0-30 Days 31-90 Days 91-180 Days Over 1 Year Total Year Deposits from the Central Bank and banks $ 98,930 $ 143,383 $ 448,137 $ 221,437 $ - $ 911,887 Payables 258,676 27,352 97,965 155,841 - 539,834 Deposits and remittances 1,834,627 1,210,025 844,560 677,589 33,356 4,600,157

3) Maturity analysis of financial derivatives held for liquidity risk management

a) Derivative liabilities settled on a net basis

Derivative liabilities of Bank SinoPac and Bank SinoPac (China) settled on a net basis include, but are not limited to:

Foreign exchange derivatives: Non-deliverable foreign exchange forwards, net cash flow settled foreign exchange options, etc.;

Interest rate derivatives: Forward rate agreements, interest rate swaps and interest rate futures contracts;

Other derivatives: Stock options and commodity futures.

A hedging derivative financial instrument is managed within the contract period and it is disclosed as undiscounted cash flow based on its maturity. Bank SinoPac and Bank SinoPac (China) use derivative financial liabilities at fair value through profit or loss mainly to accommodate customers’ needs and manage their own exposure positions, and disclosed the derivative financial liabilities at fair value based on the shortest period that payment would be required.

Bank SinoPac

181 Days to 1 March 31, 2021 0-30 Days 31-90 Days 91-180 Days Over 1 Year Total Year Financial liabilities at fair value through profit or loss $ 3,377,189 $ - $ - $ - $ - $ 3,377,189

181 Days to 1 December 31, 2020 0-30 Days 31-90 Days 91-180 Days Over 1 Year Total Year Financial liabilities at fair value through profit or loss $ 4,930,871 $ - $ - $ - $ - $ 4,930,871

181 Days to 1 March 31, 2020 0-30 Days 31-90 Days 91-180 Days Over 1 Year Total Year Financial liabilities at fair value through profit or loss $ 12,608,865 $ - $ - $ - $ - $ 12,608,865

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Bank SinoPac (China)

(In Thousands of CNY)

181 Days to 1 March 31, 2021 0-30 Days 31-90 Days 91-180 Days Over 1 Year Total Year Financial liabilities at fair value through profit or loss $ 6,506 $ - $ - $ - $ - $ 6,506

(In Thousands of CNY)

181 Days to 1 December 31, 2020 0-30 Days 31-90 Days 91-180 Days Over 1 Year Total Year Financial liabilities at fair value through profit or loss $ 6,463 $ - $ - $ - $ - $ 6,463

(In Thousands of CNY)

181 Days to 1 March 31, 2020 0-30 Days 31-90 Days 91-180 Days Over 1 Year Total Year Financial liabilities at fair value through profit or loss $ 5,048 $ - $ - $ - $ - $ 5,048 b) Derivatives settled on a gross basis

Gross settled derivatives of Bank SinoPac and Bank SinoPac (China) include:

Foreign exchange derivatives: Foreign exchange forward agreements, foreign exchange swaps, cross currency swaps and gross settled foreign exchange options.

Among which, foreign exchange forwards, foreign exchange swaps, and cross currency swaps are organized into the corresponding time periods based on the cash flow indicated on the contracts, and therefore the amount disclosed will not correspond to the relevant items in the consolidated balance sheet; the gross settled foreign exchange options, as a position reserved for the purpose of transaction, Bank SinoPac and Bank SinoPac (China) are able to adjust the position at any time, and therefore the cash inflow and outflow of such are expressed at their fair values, and they are placed in the most recent time period alongside the derivative liabilities settled on a net basis.

Bank SinoPac

March 31, 2021 0-30 Days 31-90 Days 91-180 Days 181 Days to 1 Year Over 1 Year Total Financial instruments at fair value through profit or loss Foreign exchange derivatives Cash inflow $ 298,450,530 $ 289,551,904 $ 213,281,949 $ 213,076,721 $ 7,019,286 $ 1,021,380,390 Cash outflow 298,664,849 289,401,845 213,613,247 213,078,533 7,039,739 1,021,798,213

December 31, 2020 0-30 Days 31-90 Days 91-180 Days 181 Days to 1 Year Over 1 Year Total Financial instruments at fair value through profit or loss Foreign exchange derivatives Cash inflow $ 328,647,096 $ 261,676,902 $ 195,750,840 $ 238,934,793 $ 5,000,411 $ 1,030,010,042 Cash outflow 329,002,676 261,615,347 196,200,139 239,348,488 4,960,371 1,031,127,021

March 31, 2020 0-30 Days 31-90 Days 91-180 Days 181 Days to 1 Year Over 1 Year Total Financial instruments at fair value through profit or loss Foreign exchange derivatives Cash inflow $ 481,805,902 $ 447,405,655 $ 271,295,096 $ 173,944,685 $ 3,895,476 $ 1,378,346,814 Cash outflow 482,445,879 447,276,615 270,828,362 174,139,913 3,887,021 1,378,577,790

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Bank SinoPac (China)

(In Thousands of CNY)

Less than 1 3 Months to 1 March 31, 2021 1-3 Months 1-5 Years Over 5 Years Total Month Year Financial instruments at fair value through profit or loss Foreign exchange derivatives Cash inflow $ 5,127,893 $ 4,350,253 $ 5,282,961 $ 995,408 $ - $ 15,756,515 Cash outflow 5,188,822 4,400,435 5,317,946 997,761 - 15,904,964

(In Thousands of CNY)

Less than 1 3 Months to 1 December 31, 2020 1-3 Months 1-5 Years Over 5 Years Total Month Year Financial instruments at fair value through profit or loss Foreign exchange derivatives Cash inflow $ 5,244,963 $ 4,514,002 $ 7,012,346 $ 1,008,453 $ - $ 17,779,764 Cash outflow 5,314,808 4,566,215 7,059,472 1,010,267 - 17,950,762

(In Thousands of CNY)

Less than 1 3 Months to 1 March 31, 2020 1-3 Months 1-5 Years Over 5 Years Total Month Year Financial instruments at fair value through profit or loss Foreign exchange derivatives Cash inflow $ 3,718,320 $ 6,058,994 $ 9,288,380 $ 766,563 $ - $ 19,832,257 Cash outflow 3,724,963 6,043,947 9,284,194 766,762 - 19,819,866

4) Maturity analysis of off-balance sheet items

Maturity analysis of off-balance sheet items are summarized in the following tables. Financial guarantee contracts of Bank SinoPac and Bank SinoPac (China) that assume full amount are available or require to execute at the earliest time. The amounts are provided on a contract cash flow basis so some of the amounts will not match the amounts in the consolidated balance sheets.

Bank SinoPac

181 Days to 1 March 31, 2021 0-30 Days 31-90 Days 91-180 Days Over 1 Year Total Year Undrawn loan commitments $ 83,611 $ 2,199,619 $ 2,790,501 $ 5,077,835 $ 27,284,911 $ 37,436,477 Guarantees 7,052,444 9,925,092 3,149,113 5,560,795 9,228,255 34,915,699 Standby letter of credit 1,998,189 2,899,522 1,620,429 150,696 - 6,668,836

181 Days to 1 December 31, 2020 0-30 Days 31-90 Days 91-180 Days Over 1 Year Total Year Undrawn loan commitments $ 215,995 $ 1,317,788 $ 5,456,442 $ 5,358,244 $ 24,277,855 $ 36,626,324 Guarantees 10,348,484 6,194,237 1,328,332 4,593,308 8,295,644 30,760,005 Standby letter of credit 1,366,740 3,104,846 752,802 209,083 - 5,433,471

181 Days to 1 March 31, 2020 0-30 Days 31-90 Days 91-180 Days Over 1 Year Total Year Undrawn loan commitments $ 402,093 $ 1,438,757 $ 1,310,459 $ 1,691,869 $ 23,244,832 $ 28,088,010 Guarantees 5,470,315 3,438,320 2,305,697 4,335,894 6,461,083 22,011,309 Standby letter of credit 1,225,156 1,515,066 403,025 195,803 - 3,339,050

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Bank SinoPac (China)

(In Thousands of CNY)

181 Days to March 31, 2021 0-30 Days 31-90 Days 91-180 Days Over 1 Year Total 1 Year Undrawn loans commitments $ - $ - $ 70,938 $ 3,850 $ 141,808 $ 216,596 Guarantees 65,199 76,537 295,666 385,595 190,460 1,013,457 Standby letter of credit 47,222 49,838 58,310 - - 155,370

(In Thousands of CNY)

181 Days to December 31, 2020 0-30 Days 31-90 Days 91-180 Days Over 1 Year Total 1 Year Undrawn loans commitments $ - $ - $ - $ 5,937 $ 146,379 $ 152,316 Guarantees 16,885 126,341 157,500 529,272 203,020 1,033,018 Standby letter of credit 56,996 76,817 18,160 - - 151,973

(In Thousands of CNY)

181 Days to March 31, 2020 0-30 Days 31-90 Days 91-180 Days Over 1 Year Total 1 Year Undrawn loans commitments $ 1,616 $ - $ - $ 100,000 $ 82,516 $ 184,132 Guarantees 25,939 236,644 238,549 266,206 126,904 894,242 Standby letter of credit 44,745 54,609 845 3,640 - 103,839

5) Maturity analysis of lease commitments

Lease agreement commitment is the minimum lease payment when Bank SinoPac and its subsidiaries is lessee or lessor with non-cancelling condition.

Maturity analysis of lease commitments is summarized as follows:

Less than March 31, 2021 1-5 Years Over 5 Years Total 1 Year Lease agreement commitments Lease liabilities (lessee) $ 643,242 $ 1,318,338 $ 851,521 $ 2,813,101 Operating lease income (lessor) 79,753 174,954 8,550 263,257

Less than December 31, 2020 1-5 Years Over 5 Years Total 1 Year Lease agreement commitments Lease liabilities (lessee) $ 603,836 $ 1,193,368 $ 806,758 $ 2,603,962 Operating lease income (lessor) 77,822 179,793 11,400 269,015

Less than March 31, 2020 1-5 Years Over 5 Years Total 1 Year Lease agreement commitments Lease liabilities (lessee) $ 628,928 $ 1,124,290 $ 675,003 $ 2,428,221 Operating lease income (lessor) 80,912 204,664 10,422 295,998

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6) Disclosures prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Public Banks

a) Maturity analysis of assets and liabilities of Bank SinoPac (New Taiwan dollars)

March 31, 2021 181 Days to 1 Total 0-10 Days 11-30 Days 31-90 Days 91-180 Days Over 1 Year Year Main capital inflow on maturity $ 1,774,363,417 $ 216,831,302 $ 259,310,381 $ 215,412,393 $ 128,950,581 $ 161,828,750 $ 792,030,010 Main capital outflow on maturity 2,101,020,507 70,687,657 113,279,087 259,952,293 312,652,666 458,665,589 885,783,215 Gap (326,657,090 ) 146,143,645 146,031,294 (44,539,900 ) (183,702,085 ) (296,836,839 ) (93,753,205 )

March 31, 2020 181 Days to 1 Total 0-10 Days 11-30 Days 31-90 Days 91-180 Days Over 1 Year Year Main capital inflow on maturity $ 1,640,087,099 $ 218,890,486 $ 185,900,370 $ 273,135,732 $ 141,147,568 $ 124,155,772 $ 696,857,171 Main capital outflow on maturity 1,977,786,233 122,702,974 145,835,189 302,398,539 298,320,097 356,210,104 752,319,330 Gap (337,699,134 ) 96,187,512 40,065,181 (29,262,807 ) (157,172,529 ) (232,054,332 ) (55,462,159 )

Note: The amounts shown in this table are the Bank SinoPac’s position denominated in NTD.

b) Maturity analysis of assets and liabilities of Bank SinoPac (U.S. dollars)

(In Thousands of U.S. Dollars)

March 31, 2021 181 Days to Total 0-30 Days 31-90 Days 91-180 Days Over 1 Year 1 Year Main capital inflow on maturity $ 35,299,719 $ 9,736,338 $ 7,019,415 $ 5,007,873 $ 5,254,571 $ 8,281,522 Main capital outflow on maturity 36,438,146 10,350,086 8,229,268 7,028,131 5,562,190 5,268,471 Gap (1,138,427) (613,748) (1,209,853) (2,020,258) (307,619) 3,013,051

(In Thousands of U.S. Dollars)

March 31, 2020 181 Days to Total 0-30 Days 31-90 Days 91-180 Days Over 1 Year 1 Year Main capital inflow on maturity $ 37,608,947 $ 13,129,556 $ 9,708,860 $ 5,927,939 $ 3,123,591 $ 5,719,001 Main capital outflow on maturity 38,585,967 12,509,531 10,818,729 7,086,887 4,997,815 3,173,005 Gap (977,020) 620,025 (1,109,869) (1,158,948) (1,874,224) 2,545,996

Note: The amounts shown in this table are the Bank SinoPac’s position denominated in USD. e. Market risk

1) Definition of market risk

Market risk arises from market changes (such as those referring to interest rates, exchange rates, equity securities and commodity prices) which may cause the fluctuation of a financial instrument’s fair value or future cash flow. Bank SinoPac’s net revenue and investment portfolio value may fluctuate when risk factors above change.

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The main market risks Bank SinoPac should overcome pertain to interest rate, exchange rate and equity securities. Interest rate risks primarily refer to bonds and interest rate related derivative instruments such as fixed rate and floating rate interest rate swaps and bond options; the exchange rate risk refers to foreign currency investments Bank SinoPac holds such as exchange rate related derivative instruments and foreign currency bonds; equity securities risk includes listed stocks, emerging stocks, and equity related derivative financial instruments.

2) Management strategies and procedures

To follow the “Market Risk Management Rule” and other regulations, Bank SinoPac established standards for risk identification, measurement, supervision and reporting to set up appropriate risk management framework for every kind of market risk.

In accordance with the risk management limit approved by the board of directors, Bank SinoPac supervises every loss limit and position at risk such as interest rate, exchange rate, equity security, spot trading and forward contract, option, futures, swap, and related sensitivity information derived from spot trading to confirm that market risk exposure is accepted to Bank SinoPac.

Bank SinoPac separates its transactions into hedge and non-hedge on the basis of trading purposes. For hedge transactions, Bank SinoPac should measure hedge relations, risk management goals and hedge strategies. Bank SinoPac should also perform hedge testing for hedging effectiveness.

3) Organization and framework

The board of directors is the top supervision and decision making level of Bank SinoPac; it determines every risk management procedure and limit on the basis of its operating strategy and the business environment.

Bank SinoPac also set up a risk management department headed by a general manager to establish risk managing principles, regulate risk managing policies, and plan and set up a risk management system.

Following the internal control and segregation of duties principles, Bank SinoPac had certain related functions with market risk exposures transformed into three independent departments: Trading, risk control and settlement departments, usually called front office, middle office and back office. Nevertheless, the risk management department remains in charge of market risk control, i.e., it is responsible for identifying, measuring, controlling and reporting market risk.

4) Market risk control procedure

a) Identification and measurement

Risk measurement includes exposures changes in the market of interest rates, exchange rates, and equity securities, which affect spot trading and forward, option, futures, and swap transactions or related combined transactions derived from spot trading. Bank SinoPac set up appropriate market risk limits based on commodity category, characteristic and complexity. The limits are the nominal exposure limit, the risk factor sensitivity limit of options as measured by Delta/Vega/DV01 and the loss control limit. These limits are calculated by the risk control department through measurements (such as those of the Black & Scholes Model) provided by financial data and company information providers (e.g., Murex and Bloomberg) based on market prices.

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b) Supervision and reporting

Bank SinoPac’s market risk management department prepares risk management reports such as those on daily market valuations, value at risk and risk limits. If the risk is over the limit, the department should report this situation to the transaction department and appropriate managers in the risk management department. The department should also collect and organize bank market risk exposure information, risk value, risk limit rules, and information on situations in which limits are exceeded, analyze security investments, and submit regularly to the board of directors reports on the collected information and security investment analysis.

5) Trading book risk management policies

a) Definitions

The trading book is an accounting book of the financial instruments and physical commodities held for trading or hedged by Bank SinoPac. Held-for-trading position refers to revenues earned from practical or impractical trading differences. Positions that should not be recorded in the trading book are recorded in the banking book.

b) Strategies

Bank SinoPac earns revenues from trading spreads or fixed arbitrage debt and equity instruments are held for short periods of time, purchased with the intention of profiting from short-term price changes through properly control short-term fluctuation of market risk factors (interest rate, exchange rate and stock price). It executes hedge transactions as needed.

c) Policies and procedures

Bank SinoPac carries out “Market Risk Management Policy” to control market risk.

Under the above policy, traders may autonomously operate and manage positions within the range of authorized limits and the approved trading strategy. The market risk management department supervises trading positions (including limit, liquidity, the ability to establish hedge positions and investment portfolio risk) based on market information and evaluates market information quality, acquirability, liquidity and scale which are calculated into the pricing model.

d) Assessment policies

Bank SinoPac assesses financial instruments once a day on the basis of information obtained from independent sources if market prices are acquirable. If Bank SinoPac assesses financial instruments using a pricing model, it should be careful in making mathematical calculations and should review the pricing model’s assumptions and parameters regularly.

e) Measurements

i. The risk valuation and calculation methods are described in Note 50, e, 12).

ii. The calculation of the nominal exposure amount and the risk factor sensitivity value Delta/Vega/DV01 is done through the trading systems.

iii. Bank SinoPac makes stress tests using a light scenario (change in interest rate ± 100 bp, change in securities ± 15% and change in exchange rate ± 3%) and serious scenario (change in interest rate ± 200 bp, change in securities ± 30% and change in exchange rate ± 6%) and reports the stress test results to the board of directors.

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6) Trading book interest rate risk management

a) Definitions

Interest rate risk refers to a decrease in earnings and value of financial instruments due to adverse interest rate fluctuations. Major instruments with interest rate risk include securities and derivative instruments.

b) Procedures

Bank SinoPac has a trading limit and a stop-loss limit (which should be applied to trading instrument by the dealing room and dealers) based on management strategy and market conditions; limits have been approved by the board of directors.

c) Measurements

i. The risk valuation assumptions and calculation methods are described in Note 50, e, 12).

ii. DV01 is used daily to measure the impact of interest rate changes on investment portfolios.

7) Trading book exchange rate risk management

a) Definitions

Exchange rate risk refers to the incurrence of loss from the exchange of currencies in different timing. Bank SinoPac’s major financial instruments exposed to exchange rate risk spot contract, forward contracts, and FX option.

b) Policies and procedures

To control the exchange rate risk, Bank SinoPac sets trading limit and stop-loss limit and requires the dealing room, dealers, etc., to observe these limits.

c) Measurements

i. The risk valuation assumptions and calculation methods are described in Note 50, e, 12).

ii. Exposure positions are measured daily for the impact of exchange rate changes on investment portfolio value.

8) Trading book equity risk management

a) Definitions

Market risk of equity securities includes individual risk which arises from volatility of market price on individual equity securities and general market risk which arises from volatility of overall market price.

b) Procedures

To control equity risk, Bank SinoPac sets investment position limits and stop-loss limits. The limits are approved by the board of directors. Within the limit of authority, Bank SinoPac sets investment position limits and stop-loss limits for each dealer.

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c) Measurements

i. The risk valuation assumptions and calculation methods are described in Note 50, e, 12).

ii. Exposure positions are measured daily to measure the impact of equity risk on investment portfolio value due from equity risk.

9) Banking book interest rate risk management

Banking book interest rate risk refers to the decrease in the value of the banking book portfolio due to unfavorable interest rate changes. The banking book interest rate risk is not related to the interest rate position shown in the trading book.

Through managing the banking book interest rate risk, Bank SinoPac can measure and manage the risk to earnings and financial position caused by interest rate fluctuations.

a) Strategies

To reduce the negative effect of interest rate changes on of net interest revenue and economic value, Bank SinoPac adjusts positions within certain limits for better performance. It reviews the interest rate sensitivity regularly to create maximum profit and manage interest rate risk.

b) Risk measurement

Risk measurement refers to the interest rate risk of assets, liabilities, and off-balance-sheet positions. Bank SinoPac periodically reports interest rate sensitivity positions and measures the impact of interest rate fluctuations on interest rate-sensitive assets and net interest revenue.

c) Risk monitoring

The asset and liability management committee examines and monitors exposure to interest rate risk on the basis of the measurement provided by the risk management sector.

If the risk exposure condition exceeds the limit or target value, the risk management sector should investigate how this condition arose and notify the executive division accordingly. The executive division coordinates with relevant divisions to find solutions to problems. The asset and liability management committee will evaluate solutions for effectiveness. If evaluation results are positive, the relevant division will apply the solutions.

10) Banking book equity risk management

Banking book equity risk refers to the decrease in the value of the held equity due to unfavorable effects of certain situations. The Bank established control policies related to equity instruments to make the risk within controllable range.

a) Strategies

The Bank has established comprehensive investment decision procedures, risk control measures, principles of disposal, and regular assessment of investment situation in order to raise the benefits of long-term fund management, reach the balance of profit and risk, and pursue the long-term stable investment performance.

b) Risk measurement

The Bank has set up criteria for equity securities to be selected for investment, such as time horizons, investment upper limits and credit ratings to control the risks of equity securities.

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c) Risk monitoring

i. The Bank holding an investment with specific amount of valuation loss should submit the description of the situation and the suggested plan for action, and continue the monitoring of the case.

ii. The Bank regularly assesses the risk of the investment target, checks the extent of the concentration in industries and reports the overview of the investment portfolio to the committee on the management of assets and liabilities.

11) Impact of interest rate benchmark reform

The financial instrument of Bank SinoPac affected by interest rate benchmark reform include credit, bonds and derivatives financial assets. The type of interest rate benchmark linked to it is mainly the London InterBank Offered Rate (LIBOR). LIBOR is a forward-looking interest rate benchmark that implies market expectations for future interest rate trend, and includes inter-bank credit discounts. The alternative reference rate of LIBOR (such as US Secured Overnight Finance Rate, SOFR) is a retrospective interest rate benchmark with actual transaction data and does not include credit discounts. Therefore, additional adjustments must be made when existed contracts are modified from linking LIBOR to alternative interest rate indicator to ensure that the interest rate is economically equivalent between before and after modification.

Bank SinoPac has formulated a LIBOR conversion plan to deal with product business strategy adjustments, information system updates, financial instrument evaluation model adjustments, and related accounting or tax issues required to meet the reform of interest rate benchmark. As of March 31, 2021, Bank SinoPac has identified all information systems and internal processes that need to be updated, and are still confirming the scope of the impact. At present, the projects are implemented on time according to the schedule.

Interest rate benchmark reform mainly expose the basic interest rate risk to Bank SinoPac. If Bank SinoPac unable to complete the contracts modification with the counterparty before the decommission of LIBOR, the financial instrument will cause significant uncertainty to the interest rate basis and then that will trigger unexpected interest rate risk exposure. In addition, if the financial instrument for hedging purpose and the related financial instrument to be hedged are not converted to alternative interest rate benchmark at the same time, it may lead to the ineffective hedge.

As of March 31, 2021, the financial instruments of Bank SinoPac and its subsidiaries that have been affected by interest rate benchmark reform and have not yet been converted to alternative interest rate benchmark are summarized as follows:

Book Value Non-derivatives Financial Financial Assets Liabilities USD LIBOR $ 200,467,603 $ - EUR LIBOR 3,404,620 - GBP LIBOR 750,244 - JPY LIBOR 143,826 - CHF LIBOR - - $ 204,766,293 $ -

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National Derivatives Amount USD LIBOR $ 59,149,726 EUR LIBOR - GBP LIBOR - JPY LIBOR - CHF LIBOR - $ 59,149,726

12) Market risk measurement technique

Value at Risk (VaR)

Bank SinoPac uses the Risk Manager system and stress testing to measure its investment portfolio risk and uses several hypotheses about market conditions to measure market risk and expected maximum loss of holding positions. Bank SinoPac’s board of directors has set a VaR limit. The VaR is controlled daily by the market risk management sector and is a widely used risk measure of the risk of loss on a specific portfolio of financial assets.

VaR is the statistical estimate of the potential loss of holding positions due to unfavorable market conditions. For Bank SinoPac, VaR refers to a fall in value of its holding position in a day, with a 99% confidence level. Bank SinoPac uses VaR and the Monte Carlo simulation method to derive quantitative measures for the market risks of the holding positions under normal conditions. The calculated result is used to test and monitor the validity of parameters and hypotheses periodically. However, the use of the VaR cannot prevent loss caused by huge unfavorable changes in market conditions.

Bank SinoPac considers the expected maximum loss, target profit, and operating strategy in setting the VaR, which is proposed by the market risk management sector and approved by the board of directors.

Bank SinoPac’s trading book VaR overview

For the Three Months Ended March 31, 2021

Average Maximum Minimum Exchange rate risk 20,659 39,447 14,597 Interest rate risk 39,031 58,153 28,051 Equity risk 4,169 11,218 379 Total VaR 47,103 68,237 36,022

Note 1: Estimated VaR: Time frame = 1 day, confidence level = 99%, decay factor = 0.94.

Note 2: Historical data period: 2021.01.02 - 2021.03.31

For the Three Months Ended March 31, 2020

Average Maximum Minimum Exchange rate risk 9,767 22,609 5,023 Interest rate risk 89,195 200,058 35,071 Equity risk - - - Total VaR 91,012 203,536 35,931

Note 1: Estimated VaR: Time frame = 1 day, confidence level = 99%, decay factor = 0.94.

Note 2: Historical data period: 2020.01.02 - 2020.03.31

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Bank SinoPac (China)’s trading book VaR overview

(In Thousands of CNY)

For the Three Months Ended March 31, 2021

Average Maximum Minimum Exchange rate risk 2,805 4,469 2,118 Interest rate risk 336 591 97 Equity risk - - - Total VaR 471 2,095 225

Note 1: Estimated VaR: Time frame = 1 day, confidence level = 99%, decay factor = 0.94.

Note 2: Historical data period: 2021.01.01 - 2021.03.31

(In Thousands of CNY)

For the Three Months Ended March 31, 2020

Average Maximum Minimum Exchange rate risk 1,608 3,566 856 Interest rate risk 313 975 113 Equity risk - - - Total VaR 522 2,198 179

Note 1: Estimated VaR: Time frame = 1 day, confidence level = 99%, decay factor = 0.94.

Note 2: Historical data period: 2020.01.01 - 2020.03.31

13) Exchange rate risks

Exchange rate risks of holding net positions in foreign currencies are shown as below:

March 31, 2021 Foreign Currency Converted to (In Thousands) Exchange Rate NTD

Financial assets

Monetary items USD $ 14,580,112 28.53265 $ 416,009,233 CNY 19,748,718 4.34836 85,874,535 Nonmonetary items USD 392,135 28.53265 11,188,651

Financial liabilities

Monetary items USD 18,219,065 28.53265 519,838,205 CNY 18,861,703 4.34836 82,017,475

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December 31, 2020 Foreign Currency Converted to (In Thousands) Exchange Rate NTD

Financial assets

Monetary items USD $ 13,870,720 28.50837 $ 395,431,618 CNY 16,967,587 4.38324 74,373,006 Nonmonetary items USD 393,237 28.50837 11,210,546

Financial liabilities

Monetary items USD 18,198,751 28.50837 518,816,727 CNY 16,258,852 4.38324 71,266,450

March 31, 2020 Foreign Currency Converted to (In Thousands) Exchange Rate NTD

Financial assets

Monetary items USD $ 12,457,896 30.27999 $ 377,224,968 CNY 17,626,247 4.26341 75,147,916 Nonmonetary items USD 402,568 30.27999 12,189,757

Financial liabilities

Monetary items USD 16,140,877 30.27999 488,745,606 CNY 16,593,086 4.26341 70,743,129

14) Compliance with the Regulations Governing the Preparation of Financial Reports by Public Banks

a) Bank SinoPac Interest rate sensitivity information (New Taiwan dollars)

March 31, 2021

181 Days to Items 1 to 90 Days 91 to 180 Days Over 1 Year Total 1 Year Interest rate-sensitive assets $ 1,145,067,150 $ 21,109,033 $ 74,684,920 $ 117,419,316 $ 1,358,280,419 Interest rate-sensitive liabilities 281,892,169 746,833,957 136,446,501 57,288,644 1,222,461,271 Interest rate-sensitive gap 863,174,981 (725,724,924 ) (61,761,581 ) 60,130,672 135,819,148 Net worth 139,745,862 Ratio of interest rate-sensitive assets to liabilities (%) 111.11% Ratio of interest rate-sensitive gap to net worth (%) 97.19%

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March 31, 2020

181 Days to Items 1 to 90 Days 91 to 180 Days Over 1 Year Total 1 Year Interest rate-sensitive assets $ 997,077,280 $ 26,313,936 $ 68,065,075 $ 123,464,187 $ 1,214,920,478 Interest rate-sensitive liabilities 313,894,354 575,165,335 86,953,131 61,142,723 1,037,155,543 Interest rate-sensitive gap 683,182,926 (548,851,399 ) (18,888,056 ) 62,321,464 177,764,935 Net worth 134,614,354 Ratio of interest rate-sensitive assets to liabilities (%) 117.14% Ratio of interest rate-sensitive gap to net worth (%) 132.05%

Note 1: The above amounts include only New Taiwan dollars held by Bank SinoPac and exclude contingent assets and contingent liabilities.

Note 2: Interest rate-sensitive assets and liabilities mean the revenues or costs of interest-earning assets and interest-bearing liabilities are affected by interest rate changes.

Note 3: Interest rate-sensitivity gap = Interest rate-sensitive assets - Interest rate-sensitive liabilities.

Note 4: Ratio of interest rate-sensitive assets to liabilities = Interest rate-sensitive assets ÷ Interest rate-sensitive liabilities (in New Taiwan dollars). b) Bank SinoPac Interest rate sensitivity information (U.S. dollars)

March 31, 2021 (In Thousands of U.S. Dollars)

181 Days to Items 1 to 90 Days 91 to 180 Days Over 1 Year Total 1 Year Interest rate-sensitive assets $ 9,286,981 $ 475,036 $ 161,558 $ 3,069,778 $ 12,993,353 Interest rate-sensitive liabilities 5,374,994 9,134,128 1,411,200 77,846 15,998,168 Interest rate-sensitive gap 3,911,987 (8,659,092 ) (1,249,642 ) 2,991,932 (3,004,815 ) Net worth 32,393 Ratio of interest rate-sensitive assets to liabilities (%) 81.22% Ratio of interest rate-sensitive gap to net worth (%) (9,276.12)%

March 31, 2020 (In Thousands of U.S. Dollars)

181 Days to Items 1 to 90 Days 91 to 180 Days Over 1 Year Total 1 Year Interest rate-sensitive assets $ 8,319,425 $ 510,766 $ 208,310 $ 1,465,065 $ 10,503,566 Interest rate-sensitive liabilities 6,290,393 5,995,250 1,461,931 113,055 13,860,629 Interest rate-sensitive gap 2,029,032 (5,484,484 ) (1,253,621 ) 1,352,010 (3,357,063 ) Net worth (27,428 ) Ratio of interest rate-sensitive assets to liabilities (%) 75.78% Ratio of interest rate-sensitive gap to net worth (%) 12,239.55%

Note 1: The above amounts include only USD held by Bank SinoPac and exclude contingent assets and contingent liabilities.

Note 2: Interest rate-sensitive assets and liabilities mean the revenues or costs of interest-earnings assets and interest-bearing liabilities are affected by interest-rate changes.

Note 3: Interest rate-sensitive gap = Interest rate-sensitive assets - Interest rate-sensitive liabilities.

Note 4: Ratio of interest rate-sensitive assets to liabilities = Interest rate-sensitive assets ÷ Interest rate-sensitive liabilities (in USD).

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15) Transfers of financial assets

The transferred financial assets of Bank SinoPac and its subsidiaries that do not qualify for derecognition in the daily operation are mainly securities sold under repurchase agreements. The transaction transfers the contractual rights to receive the cash flows of the financial assets but Bank SinoPac and its subsidiaries retains the liabilities to repurchase the transferred financial assets at fixed price in the future period. Bank SinoPac and its subsidiaries cannot use, sell, or pledge these transferred financial assets within the validity period of the transaction. However, Bank SinoPac and its subsidiaries still bear the interest rate risk and credit risk thus, Bank SinoPac and its subsidiaries do not derecognize it. The analysis of financial assets and related liabilities that did not completely meet the derecognizing condition is shown in the following table:

March 31, 2021 Transferred Related Transferred Related Category of Financial Asset Financial Financial Financial Financial Net Position - Assets - Book Liabilities - Assets - Fair Liabilities - Fair Value Value Book Value Value Fair Value Financial assets at fair value through other comprehensive income Transactions under repurchase agreements $ 5,559,367 $ 5,407,833 $ 5,559,367 $ 5,407,833 $ 151,534 Securities purchased under resell agreements Transactions under repurchase agreements 7,504,617 8,076,073 7,504,617 8,076,073 (571,456)

December 31, 2020 Transferred Related Transferred Related Category of Financial Asset Financial Financial Financial Financial Net Position - Assets - Book Liabilities - Assets - Fair Liabilities - Fair Value Value Book Value Value Fair Value Financial assets at fair value through other comprehensive income Transactions under repurchase agreements $ 1,058,746 $ 1,015,961 $ 1,058,746 $ 1,015,961 $ 42,785 Securities purchased under resell agreements Transactions under repurchase agreements 2,271,514 2,451,600 2,271,514 2,451,600 (180,086)

March 31, 2020 Transferred Related Transferred Related Category of Financial Asset Financial Financial Financial Financial Net Position - Assets - Book Liabilities - Assets - Fair Liabilities - Fair Value Value Book Value Value Fair Value Financial assets at fair value through other comprehensive income Transactions under repurchase agreements $ 463,506 $ 463,956 $ 463,506 $ 463,956 $ (450) Investments in debt instruments at amortized cost Transactions under repurchase agreements 3,699,430 3,625,000 3,820,783 3,625,000 195,783 Securities purchased under resell agreements Transactions under repurchase agreements 2,365,402 2,521,489 2,365,402 2,521,489 (156,087)

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16) Offsetting of financial assets and financial liabilities

Bank SinoPac and its subsidiaries did not hold financial instruments covered by Section 42 of the IAS 32 “Financial Instruments: Presentation” endorsed by the Financial Supervisory Commission; thus, it made an offset of financial assets and liabilities and reported the net amount in the balance sheet.

Bank SinoPac and its subsidiaries engages in transactions on the following financial assets and liabilities that are not subject to balance sheet offsetting based on IAS 32 but are under master netting arrangements or similar agreements. These agreements allow both Bank SinoPac and its subsidiaries and its counterparties to opt for the net settlement of financial assets and financial liabilities. If one party defaults, the other one may choose net settlement.

The netting information of financial assets and financial liabilities is set out below:

March 31, 2021

Netted Financial Liabilities Related Amount Not Netted on Recognized Recognized on Recognized the Balance Sheet Financial the Balance Financial Financial Assets - Gross Sheet - Gross Assets - Net Instruments Cash Received Financial Assets Amount Amount Amount (Note) as Collaterals Net Amount

Derivative instruments $ 15,068,999 $ - $ 15,068,999 $ 9,315,712 $ 2,068,819 $ 3,684,468 Securities purchased under resell agreements 63,778,418 - 63,778,418 63,764,598 - 13,820

$ 78,847,417 $ - $ 78,847,417 $ 73,080,310 $ 2,068,819 $ 3,698,288

Netted Financial Assets Related Amount Not Netted on Recognized Recognized on Recognized the Balance Sheet Financial the Balance Financial Cash Financial Liabilities - Sheet - Gross Liabilities - Net Financial Collaterals Liabilities Gross Amount Amount Amount Instruments Pledged Net Amount (Note) Derivative instruments $ 15,226,174 $ - $ 15,226,174 $ 9,315,712 $ 947,452 $ 4,963,010 Securities sold under repurchase agreements 13,605,676 - 13,605,676 13,581,129 - 24,547

$ 28,831,850 $ - $ 28,831,850 $ 22,896,841 $ 947,452 $ 4,987,557

Note: Including netting settlement agreements and non-cash financial collaterals.

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December 31, 2020

Netted Financial Liabilities Related Amount Not Netted on Recognized Recognized on Recognized the Balance Sheet Financial the Balance Financial Financial Assets - Gross Sheet - Gross Assets - Net Instruments Cash Received Financial Assets Amount Amount Amount (Note) as Collaterals Net Amount

Derivative instruments $ 20,531,649 $ - $ 20,531,649 $ 10,258,191 $ 4,390,542 $ 5,882,916 Securities purchased under resell agreements 50,648,028 - 50,648,028 50,639,522 - 8,506

$ 71,179,677 $ - $ 71,179,677 $ 60,897,713 $ 4,390,542 $ 5,891,422

Netted Financial Assets Related Amount Not Netted on Recognized Recognized on Recognized the Balance Sheet Financial the Balance Financial Cash Financial Liabilities - Sheet - Gross Liabilities - Net Financial Collaterals Liabilities Gross Amount Amount Amount Instruments Pledged Net Amount (Note) Derivative instruments $ 21,206,482 $ - $ 21,206,482 $ 10,258,191 $ 1,885,934 $ 9,062,357 Securities sold under repurchase agreements 3,701,323 - 3,701,323 3,698,310 - 3,013

$ 24,907,805 $ - $ 24,907,805 $ 13,956,501 $ 1,885,934 $ 9,065,370

Note: Including netting settlement agreements and non-cash financial collaterals.

March 31, 2020

Netted Financial Liabilities Related Amount Not Netted on Recognized Recognized on Recognized the Balance Sheet Financial the Balance Financial Financial Assets - Gross Sheet - Gross Assets - Net Instruments Cash Received Financial Assets Amount Amount Amount (Note) as Collaterals Net Amount

Derivative instruments $ 17,705,105 $ - $ 17,705,105 $ 12,456,173 $ 1,152,751 $ 4,096,181 Securities purchased under resell agreements 23,662,935 - 23,662,935 23,617,838 - 45,097

$ 41,368,040 $ - $ 41,368,040 $ 36,074,011 $ 1,152,751 $ 4,141,278

Netted Financial Assets Related Amount Not Netted on Recognized Recognized on Recognized the Balance Sheet Financial the Balance Financial Cash Financial Liabilities - Sheet - Gross Liabilities - Net Financial Collaterals Liabilities Gross Amount Amount Amount Instruments Pledged Net Amount (Note) Derivative instruments $ 19,256,552 $ - $ 19,256,552 $ 12,456,173 $ 3,716,164 $ 3,084,215 Securities sold under repurchase agreements 6,707,512 - 6,707,512 6,706,792 - 720

$ 25,964,064 $ - $ 25,964,064 $ 19,162,965 $ 3,716,164 $ 3,084,935

Note: Including netting settlement agreements and non-cash financial collaterals.

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SinoPac Securities Corporation a. Risk management organization

SinoPac Securities Corporation (SinoPac Securities) has a risk management committee under the chairman who is the committee convener. The committee is in charge of deliberating risk management policies, regulations and overall risk limitation. It helps the board of directors fully supervise the risk management and related operations. Further, it set up a risk management division that is guided by the manager and is responsible for planning, managing, assessing and executing daily risk management procedures. The committee deliberates each policy, principle and regulation, which are presented to the board of directors for final approval and executed by the risk management division. The risk management division reviews the results and performance of the risk management committee. b. Goal and policy of risk management

SinoPac Securities and its subsidiaries’ objectives and policies of risk management are based on the concept of capital allocation to define the overall total exposure limit. Under this concept and risk management principles, SinoPac Securities and its subsidiaries pursue steady growth within a certain level of risk.

1) Market risk

Market risk refers to the possible loss due to the change in market interest rates, equity instruments, foreign exchange rates and market value change in derivatives which resulted from trading commodity, such as forwards, options, futures, swaps and other composition transactions.

SinoPac Securities and its subsidiaries apply the concept of risk capital allocation in use to set the overall operating limit and market risk limit of SinoPac Securities and its subsidiaries. Through the monitoring of limits, loss advisories and statistical measures to keep an eye on and control market risk in time. Moreover, for the efficient management of market risk, a regular assessment should be presented to the managerial level and board of directors.

SinoPac Securities and its subsidiaries use value-at-risk (VaR), a statistical measure to estimate and manage market risk. Through a regular stress test, sensitivity test and feedback test, SinoPac Securities will be able to verify the validity of the risk management system. SinoPac Securities and its subsidiaries use a risk managing tool, risk manager, designed by an internationally renowned institution, MSCI. The system provides more solid, precise quantitative indices and other tools for a more effective risk evaluation.

a) Value-at-risk (VaR)

VaR is a statistical measure that estimates potential losses and is defined as the predicted worst-scenario case due to changes in risk factors under normal circumstances over a specified period and at a specific level of statistical confidence. The VaR is calculated at a 99% confidence level for a one-day holding period, using changes in historical rates and prices.

SinoPac Securities and its subsidiaries’ VaR values were as follows:

December 31, March 31, 2021 2020 March 31, 2020

Equities $ 114,007 $ 84,809 $ 253,417 Interest rate risk $ 56,062 $ 22,204 $ 175,617 Overall market risk value $ 117,545 $ 92,887 $ 405,854 Percentage of net value 0.39% 0.32% 1.58%

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For the Three Months Ended March 31 2021 2020 Average Minimum Maximum Average Minimum Maximum

Equities $ 109,181 $ 77,351 $ 150,040 $ 175,742 $ 81,246 $ 318,533 Interest rate risk 55,234 19,375 77,238 109,799 48,444 212,601

Foreign exchange rate risk is mainly due to the purchase of foreign currency-denominated assets. SinoPac Securities and its subsidiaries use certain agreed-upon proximal and distal exchanging points on currency swap contracts to manage foreign exchange risk, so the risk is rather low.

The table below shows the foreign currency-denominated monetary assets and monetary liabilities as of the balance sheet date:

(Unit: Foreign Currencies/New Taiwan Dollars in Thousands)

March 31, 2021 Foreign Currencies Exchange Rate NTD

Financial assets

Monetary items USD $ 1,386,998 28.533 $ 39,575,695 NTD 2,042,728 1.000 2,042,728 HKD 271,479 3.670 996,334 CNY 2,380,016 4.348 10,349,044 EUR 117,027 33.480 3,918,047 AUD 6,879 21.712 149,354 JPY 11,969,148 0.258 3,084,564 GBP 4,318 39.237 169,409

Financial liabilities

Monetary items USD 1,261,377 28.533 35,991,601 NTD 1,290,456 1.000 1,290,456 HKD 258,629 3.670 949,201 CNY 703,418 4.348 3,058,578 EUR 105,610 33.480 3,535,803 JPY 11,397,233 0.258 2,937,159 GBP 3,411 39.237 133,827

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December 31, 2020 Foreign Currencies Exchange Rate NTD

Financial assets

Monetary items USD $ 1,338,947 28.500 $ 38,159,795 NTD 516,240 1.000 516,240 HKD 310,739 3.673 1,141,485 CNY 1,768,420 4.383 7,751,092 EUR 83,989 35.032 2,942,331 AUD 5,808 21.984 127,683 JPY 7,354,669 0.276 2,032,370 GBP 9,424 38.901 366,618

Financial liabilities

Monetary items USD 1,060,959 28.500 30,238,486 HKD 230,068 3.673 845,125 CNY 459,445 4.383 2,013,648 EUR 72,728 35.032 2,547,800 JPY 6,724,341 0.276 1,858,147 GBP 8,525 38.901 331,625

March 31, 2020 Foreign Currencies Exchange Rate NTD

Financial assets

Monetary items USD $ 1,343,437 30.270 $ 40,663,969 NTD 1,691,872 1.000 1,691,872 HKD 208,321 3.900 812,501 CNY 949,951 4.263 4,049,351 EUR 107,155 33.295 3,567,929 AUD 23,181 18.628 431,064 JPY 8,926,300 0.279 2,490,866 ZAR 82,050 1.688 138,472 GBP 4,769 37.320 177,985

Financial liabilities

Monetary items USD 1,043,623 30.270 31,590,593 NTD 1,187,133 1.000 1,187,133 HKD 139,854 3.900 545,536 CNY 504,016 4.263 2,148,437 EUR 92,482 33.295 3,078,951 AUD 13,278 18.628 247,754 JPY 8,942,032 0.279 2,495,434 ZAR 71,699 1.688 121,000 GBP 3,392 37.320 126,588

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The table below shows the VaR for derivatives owned by SinoPac Securities and its subsidiaries:

December 31, March 31, 2021 2020 March 31, 2020

Futures and options $ 26,120 $ 17,211 $ 12,355 Warrants 34,925 16,126 12,112 Interest rate swap contracts 604 3,653 13,598 Cross currency swap contracts - - 3,994 Currency swap contracts 1,271 298 1,230 Asset swap option contracts 67,966 69,145 16,007 Equity-linked note transactions 996 1,288 7,765 Credit-linked note transactions 3,121 3,927 1,083 Principal guaranteed note transactions 3 1 509 Issuance of ETNs 23 10 16 Forward contracts 173 72 2,578 b) Sensitivity analysis

Aside from using VaR, SinoPac Securities and its subsidiaries use several different sensitivity interest index (e.g., DVP and DV01) and Greeks (e.g., Delta, Gamma, and Vega) for risk assessment. c) Impact of interest rate benchmark reform

The financial instrument of SinoPac Securities and its subsidiaries affected by interest rate benchmark reform include derivative and non-derivative financial assets and liabilities. The type of interest rate benchmark linked to it is mainly the London InterBank Offered Rate (LIBOR). LIBOR is a forward-looking interest rate benchmark that implies market expectations for future interest rate trend, and includes inter-bank credit discounts. The alternative reference rate of LIBOR is a retrospective interest rate benchmark with actual transaction data and does not include credit discounts. Therefore, additional adjustments must be made when existed contracts are modified from linking LIBOR to alternative interest rate indicator to ensure that the interest rate is economically equivalent between before and after modification.

SinoPac Securities and its subsidiaries have formulated a LIBOR conversion plan to deal with product business strategy adjustments, information system updates, financial instrument evaluation model adjustments, and related accounting or tax issues required to meet the reform of interest rate benchmark. As of March 31, 2021, SinoPac Securities and its subsidiaries have identified all information systems and internal processes that need to be updated, and are still confirming the scope of the impact. At present, the projects are implemented on time according to the schedule.

Interest rate benchmark reform mainly expose the basic interest rate risk to SinoPac Securities and its subsidiaries. If SinoPac Securities and its subsidiaries unable to complete the contracts modification with the counterparty before the decommission of LIBOR, the financial instrument will cause significant uncertainty to the interest rate basis and then that will trigger unexpected interest rate risk exposure.

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As of March 31, 2021, the financial instruments of SinoPac Securities and its subsidiaries that have been affected by interest rate benchmark reform and have not yet been converted to alternative interest rate benchmark are summarized as follows:

Book Value Financial Non-derivatives Financial Assets Liabilities

USD LIBOR $ 5,170,770 $ 855,980 EUR LIBOR - - GBP LIBOR - - JPY LIBOR - - CHF LIBOR - -

$ 5,170,770 $ 855,980

Book Value Nominal Financial Financial Derivatives Amount Assets Liabilities

USD LIBOR $ 23,887,535 $ 725,292 $ 481,706 EUR LIBOR - - - GBP LIBOR - - - JPY LIBOR - - - CHF LIBOR - - -

$ 23,887,535 $ 725,292 $ 481,706

2) Credit risk

Credit risk is the risk of financial loss resulting from an issuer, a contract recipient or a borrower’s change in credit ratings or failure to meet obligations.

SinoPac Securities and its subsidiaries use risk-based asset allocation to set its caps for total credit risk exposure. Through risk diversification, it monitors and manages the credit limits by single client, single entity, and single corporation. Through the internal rating system, SinoPac Securities and its subsidiaries give out an exposure limit corresponding to its trading object. It also sets trading and exposure limits by type of product and department. At the same time, the credit rating of the trading object should be above the acceptable level set by SinoPac Securities and its subsidiaries. Besides managing by product, SinoPac Securities and its subsidiaries should also consider the risk involved when of different departments handle the same financial instruments as well as the types of commodities being transacted.

SinoPac Securities and its subsidiaries have set a credit risk limit monitoring panel to keep track of trading opponents daily and regularly prepare credit risk reports for the managerial level and board of directors’ review.

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The maximum credit risk exposures to financial loss arises principally from the financial assets recognized in the consolidated balance sheets. Except those listed below, the credit risk amounts of financial assets held by SinoPac Securities and its subsidiaries approximated their carrying values.

March 31, 2021 Max. Credit Exposure Carrying Value Amount

Interest rate swap contracts $ 812,902 $ 1,428,173 Cross-currency swap contracts - - Asset swap option contracts 567,422 675,292

$ 1,380,324 $ 2,103,465

December 31, 2020 Max. Credit Exposure Carrying Value Amount

Interest rate swap contracts $ 1,186,900 $ 1,615,665 Cross-currency swap contracts - - Asset swap option contracts 395,176 483,015

$ 1,582,076 $ 2,098,680

March 31, 2020 Max. Credit Exposure Carrying Value Amount

Interest rate swap contracts $ 1,716,480 $ 1,890,990 Cross-currency swap contracts 9,376 9,376 Asset swap option contracts 93,364 115,268

$ 1,819,220 $ 2,015,634

SinoPac Securities and its subsidiaries’ credit risk of major financial assets are as follows: a) Cash and cash equivalents

Cash and cash equivalents are mainly bank deposits and short-term notes whose counterparties are financial institutions with good credit. SinoPac Securities and its subsidiaries not only complies with the Regulations Governing Securities Firms when uses its funds but also set transaction limits for short-term notes based on counterparties credit ratings. b) Accounts receivable

Receivables are accounts receivable, payments on behalf of others, temporary payments, and default-settlement receivables, arising from various types of business operations and transactions. SinoPac Securities and its subsidiaries’ receivables are covered by a large number of customers, scattered in different industries and geographical areas. SinoPac Securities and its subsidiaries have the provision policy for assets impaired, and for a receivable overdue for more than 6 months, a monthly tracking report should be drawn and submit to the management.

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c) Debt instruments and derivative instruments trading

Of the overall transactions of SinoPac Securities and its subsidiaries as of March 31, 2021, were 54% in the financial service sector and 18% in the electronic industry. In addition, the transaction amounts for trading objects with credit ratings of TWA+ and above has a market share of 84%.

The investment targets of SinoPac Securities and its subsidiaries’ debt instruments at fair value through other comprehensive income are limited to the domestic and foreign currency bonds approved by the authorities, and should have a rating of at least BBB+ from the latest external credit rating agency or a minimum of H3 from the internal financial holding department. The risk management department includes the investment positions in the control and management of the credit risk limits on a daily basis to ensure the debt security of the investment positions in the debt instruments measured at FVTOCI. d) Brokerage business, financing business and the related credit business

SinoPac Securities and its subsidiaries’ uses the financing concentration system and the Merton’s probability default (PD) model to monitor individual stock that has a higher default risk, and analyze any abnormal conditions to control the default risk. The controls of the financing business and the brokerage related credit business (including securities business money lending, securities lending, money lending - any use, etc.) are as follows:

i. Concentration control: In addition to risk grading individual stock and setting the number of individual stock financing (accommodation) and credit limit of individual stock in the whole company, credit limits for the counterparties and related accounts are also set.

ii. High-risk stock control: Regularly review the list of high-risk stock and dynamically adjust the number of high-risk stock financing, financing purchase quota and individual credit limits. e) Security borrowing collateral price and securities borrowing margin

Refundable margin deposits refer to the transaction margin deposits placed with the TWSE and creditworthy domestic and foreign financial institutions; hence, the loss from credit risk is very low. Security borrowing collateral price refers to the transaction deposits placed by creditworthy securities firms for hedging transactions involving warrants and margin trading. f) Guarantee deposits paid

Refundable deposit paid mainly serves as the guarantee bond and clearing and settlement fund. It is the legal deposit paid to financial institutions designated by relevant authorities to hold these deposits. The clearing and settlement fund is the legal deposit paid to Taiwan Stock Exchange. The risk for both guaranty bond and clearing and settlement fund are rather low. g) Restricted assets

Restricted assets are mainly the bank deposits used as collateral for loans obtained by SinoPac Securities and its subsidiaries. The financial institutions holding these restricted assets all have good credit rating.

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3) Liquidity risk

Liquidity risk refers to the risk that assets cannot be realized or sufficient capital cannot be obtained, so that the obligations cannot be fulfilled (called “capital liquidity risk”), and due to insufficient market depth or disorder, the risk of significant changes of the market price when dealing with or offsetting the position held (called “market liquidity risk”).

SinoPac Securities and its subsidiaries have multiple sources of funding besides their own equity fund. They can also get the funding through borrowing from banks or, issuing commercial papers and corporate bonds. For any emergencies, financial responsibility department should report to the general manager and the chairman immediately and general manager hold a immediately meeting to discuss the emergency plan for cash flow gap. If there will be any material extensions, general manager should submit a project report to the risk management committee.

For ensuring capital needs for business development of the subsidiary of SinoPac Securities, mid-term and long-term capital was fulfilled with credit lines from financial institutions and will be approved by authorized person on demand.

Each trading authority of SinoPac Securities and its subsidiaries shall set market liquidity risk control indicators in various business management rules, and the risk management unit shall perform control in accordance with each business management rule. The risk management unit should regularly review the overall position of SinoPac Securities and its subsidiaries and review their liquidity. When there is an abnormal liquidity or an early warning, the general manager and related business units will be notified, and the business unit will propose an explanation or response plan, and the risk management unit will continue to track the follow-up improvement.

As of March 31, 2021, December 31, 2020 and March 31, 2020, the unused credit lines of SinoPac Securities and its subsidiaries were $67,125,749, $71,911,538 and $78,727,180, respectively.

The table below shows the analysis of the remaining contractual maturities for financial liabilities as of March 31, 2021, December 31, 2020 and March 31, 2020:

Payment Period First 3 to 1 Year to March 31, 2021 Current Period 12 Months 5 Years Over 5 Years Total

Current borrowings $ 338,166 $ - $ - $ - $ 338,166 Commercial paper payable 11,730,000 7,960,000 - - 19,690,000 Current financial liabilities at fair value through profit or loss 2,413,146 363,225 2,053,064 - 4,829,435 Liabilities for bonds sold under repurchase agreements 24,564,507 1,948,278 - - 26,512,785 Securities financing refundable deposits 1,176,390 - - - 1,176,390 Deposits payable for securities financing 1,319,572 - - - 1,319,572 Securities lending refundable deposits 3,313,346 - - - 3,313,346 Futures traders’ equity 26,894,225 - - - 26,894,225 Equity for each customer in the account 380,855 - - - 380,855 Notes and accounts payable 30,931,463 - - - 30,931,463 Other payables 1,201,794 - - - 1,201,794 Current other financial liabilities 10,000 - - - 10,000 Long-term liabilities - current portion 856,440 - - - 856,440 Lease liabilities 64,044 172,984 537,843 8,058 782,929 Bonds payable 12,412 29,915 2,484,339 - 2,526,666

$ 105,206,360 $ 10,474,402 $ 5,075,246 $ 8,058 $ 120,764,066

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Payment Period First 3 to 1 Year to December 31, 2020 Current Period 12 Months 5 Years Over 5 Years Total

Current borrowings $ 1,221,586 $ - $ - $ - $ 1,221,586 Commercial paper payable 6,800,000 6,650,000 - - 13,450,000 Current financial liabilities at fair value through profit or loss 1,135,956 430,486 2,060,855 - 3,627,297 Liabilities for bonds sold under repurchase agreements 21,718,832 1,067,351 - - 22,786,183 Securities financing refundable deposits 2,215,725 - - - 2,215,725 Deposits payable for securities financing 2,536,403 - - - 2,536,403 Securities lending refundable deposits 2,846,019 - - - 2,846,019 Futures traders’ equity 21,940,312 - - - 21,940,312 Equity for each customer in the account 483,505 - - - 483,505 Notes and accounts payable 26,103,753 - - - 26,103,753 Other payables 1,729,309 - - - 1,729,309 Long-term liabilities - current portion 855,903 - - - 855,903 Lease liabilities 64,952 179,071 580,366 9,013 833,402 Bonds payable 20,893 30,026 2,495,458 - 2,546,377

$ 89,673,148 $ 8,356,934 $ 5,136,679 $ 9,013 $ 103,175,774

Payment Period First 3 to 1 Year to March 31, 2020 Current Period 12 Months 5 Years Over 5 Years Total

Current borrowings $ 1,238,566 $ - $ - $ - $ 1,238,566 Commercial paper payable 5,000,000 4,750,000 - - 9,750,000 Current financial liabilities at fair value through profit or loss 4,169,647 418,066 565,030 - 5,152,743 Liabilities for bonds sold under repurchase agreements 24,673,379 1,541,935 - - 26,215,314 Securities financing refundable deposits 1,007,365 - - - 1,007,365 Deposits payable for securities financing 1,108,076 - - - 1,108,076 Securities lending refundable deposits 2,169,984 - - - 2,169,984 Futures traders’ equity 18,526,599 - - - 18,526,599 Equity for each customer in the account 273,421 - - - 273,421 Notes and accounts payable 23,828,332 - - - 23,828,332 Other payables 864,044 - - - 864,044 Long-term liabilities - current portion 12,984 3,020,803 - - 3,033,787 Lease liabilities 65,272 181,871 620,358 27,532 895,033 Bonds payable 2,003,672 15,966 60,362 - 2,080,000 Long-term borrowings 917,441 - - - 917,441

$ 85,858,782 $ 9,928,641 $ 1,245,750 $ 27,532 $ 97,060,705

As of March 31, 2021, December 31, 2020 and March 31, 2020, none of the SinoPac Securities and its subsidiaries’ lease contracts had remaining lease terms exceeding 10 years.

The analysis of the remaining contractual maturities of financial liabilities is based on the earliest due date and prepared on the basis of undiscounted cash flows.

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c. Transfers of financial assets

The transferred financial assets of SinoPac Securities and its subsidiaries that do not qualify for derecognition in the daily operation are mainly securities sold under repurchase agreements. The transaction transfers the contractual rights to receive the cash flows of the financial assets but SinoPac Securities and its subsidiaries retain the liabilities to repurchase the transferred financial assets at fixed price in the future period. SinoPac Securities and its subsidiaries cannot use, sell, or pledge these transferred financial assets within the validity period of the transaction. However, SinoPac Securities and its subsidiaries still bear the interest rate risk and credit risk; thus, SinoPac Securities and its subsidiaries do not derecognize it. Analysis of financial assets and related liabilities not completely meet derecognizing condition is shown in following table:

March 31, 2021 Transferred Related Transferred Related Category of Financial Asset Financial Financial Financial Financial Net Position - Assets - Book Liabilities - Assets - Fair Liabilities - Fair Value Value Book Value Value Fair Value Transactions under repurchase agreements

Financial assets at fair value through profit or loss $ 14,800,684 $ 13,691,343 $ 14,800,684 $ 13,691,343 $ 1,109,341 Financial assets at fair value through other comprehensive income 6,700,118 6,717,247 6,700,118 6,717,247 (17,129) Bond investments under resale agreements 5,289,252 6,067,260 5,289,252 6,067,260 (778,008)

December 31, 2020 Transferred Related Transferred Related Category of Financial Asset Financial Financial Financial Financial Net Position - Assets - Book Liabilities - Assets - Fair Liabilities - Fair Value Value Book Value Value Fair Value Transactions under repurchase agreements

Financial assets at fair value through profit or loss $ 12,901,686 $ 11,952,367 $ 12,901,686 $ 11,952,367 $ 949,319 Financial assets at fair value through other comprehensive income 5,743,015 5,653,962 5,743,015 5,653,962 89,053 Bond investments under resale agreements 5,022,290 5,157,283 5,022,290 5,157,283 (134,993)

March 31, 2020 Transferred Related Transferred Related Category of Financial Asset Financial Financial Financial Financial Net Position - Assets - Book Liabilities - Assets - Fair Liabilities - Fair Value Value Book Value Value Fair Value Transactions under repurchase agreements

Financial assets at fair value through profit or loss $ 12,945,273 $ 12,975,384 $ 12,945,273 $ 12,975,384 $ (30,111) Financial assets at fair value through other comprehensive income 9,746,200 8,797,157 9,746,200 8,797,157 949,043 Bond investments under resale agreements 4,664,050 4,400,657 4,664,050 4,400,657 263,393

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d. Offsetting of financial assets and financial liabilities

SinoPac Securities and its subsidiaries have partial of receivables from securities sale and payables from securities purchase which meeting offsetting condition, and then offset them on the balance sheet.

SinoPac Securities and its subsidiaries engage in transactions with net settlement contracts or similar agreements with counterparties, when net settlement of financial assets and financial liabilities by the choice of both parties. If not, the settlement will be based on the total amount. And if one party defaulted, the other one may choose to net settlement.

The offsetting information of financial assets and financial liabilities were as follows:

March 31, 2021

Financial Assets Under Offsetting and Executable Net Settlement Contracts or Similar Agreements Netted Financial Liabilities Recognized Recognized on Recognized Related Amount Not Netted on Financial the Balance Financial the Balance Sheet Assets - Gross Sheet - Gross Assets - Net Financial Cash Received Financial Assets Amount Amount Amount Instruments as Collateral Net Amount

Derivative assets - OTC $ 1,397,236 $ - $ 1,397,236 $ 621,521 $ - $ 775,715 Bond investments under resale agreements 6,530,676 - 6,530,676 6,530,676 - - Accounts receivable for sale of securities 6,954,821 4,646,327 2,308,494 - - 2,308,494

$ 14,882,733 $ 4,646,327 $ 10,236,406 $ 7,152,197 $ - $ 3,084,209

Financial Liabilities Under Offsetting and Executable Net Settlement Contracts or Similar Agreements Netted Financial Assets Recognized Recognized on Recognized Related Amount Not Netted on Financial the Balance Financial the Balance Sheet Liabilities - Sheet - Gross Liabilities - Net Financial Cash Collateral Financial Liabilities Gross Amount Amount Amount Instruments Pledged Net Amount

Derivative liabilities - OTC $ 2,314,032 $ - $ 2,314,032 $ 621,521 $ - $ 1,692,511 Liabilities for bonds sold under repurchase agreements 26,475,850 - 26,475,850 23,036,299 - 3,439,551 Accounts payable for securities purchased 6,892,172 4,646,327 2,245,845 - - 2,245,845

$ 35,682,054 $ 4,646,327 $ 31,035,727 $ 23,657,820 $ - $ 7,377,907

December 31, 2020

Financial Assets Under Offsetting and Executable Net Settlement Contracts or Similar Agreements Netted Financial Liabilities Recognized Recognized on Recognized Related Amount Not Netted on Financial the Balance Financial the Balance Sheet Assets - Gross Sheet - Gross Assets - Net Financial Cash Received Financial Assets Amount Amount Amount Instruments as Collateral Net Amount

Derivative assets - OTC $ 1,594,447 $ - $ 1,594,447 $ 1,025,609 $ - $ 568,838 Bond investments under resale agreements 5,262,494 - 5,262,494 5,262,494 - - Accounts receivable for sale of securities 2,641,621 1,912,490 729,131 - - 729,131

$ 9,498,562 $ 1,912,490 $ 7,586,072 $ 6,288,103 $ - $ 1,297,969

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Financial Liabilities Under Offsetting and Executable Net Settlement Contracts or Similar Agreements Netted Financial Assets Recognized Recognized on Recognized Related Amount Not Netted on Financial the Balance Financial the Balance Sheet Liabilities - Sheet - Gross Liabilities - Net Financial Cash Collateral Financial Liabilities Gross Amount Amount Amount Instruments Pledged Net Amount

Derivative liabilities - OTC $ 2,395,509 $ - $ 2,395,509 $ 1,025,609 $ - $ 1,369,900 Liabilities for bonds sold under repurchase agreements 22,763,612 - 22,763,612 19,459,859 - 3,303,753 Accounts payable for securities purchased 2,487,987 1,912,490 575,497 - - 575,497

$ 27,647,108 $ 1,912,490 $ 25,734,618 $ 20,485,468 $ - $ 5,249,150

March 31, 2020

Financial Assets Under Offsetting and Executable Net Settlement Contracts or Similar Agreements Netted Financial Liabilities Recognized Recognized on Recognized Related Amount Not Netted on Financial the Balance Financial the Balance Sheet Assets - Gross Sheet - Gross Assets - Net Financial Cash Received Financial Assets Amount Amount Amount Instruments as Collateral Net Amount

Derivative assets - OTC $ 1,842,086 $ - $ 1,842,086 $ 1,305,772 $ - $ 536,314 Bond investments under resale agreements 4,664,050 - 4,664,050 4,664,050 - - Accounts receivable for sale of securities 11,924,275 2,617,500 9,306,775 - - 9,306,775

$ 18,430,411 $ 2,617,500 $ 15,812,911 $ 5,969,822 $ - $ 9,843,089

Financial Liabilities Under Offsetting and Executable Net Settlement Contracts or Similar Agreements Netted Financial Assets Recognized Recognized on Recognized Related Amount Not Netted on Financial the Balance Financial the Balance Sheet Liabilities - Sheet - Gross Liabilities - Net Financial Cash Collateral Financial Liabilities Gross Amount Amount Amount Instruments Pledged Net Amount

Derivative liabilities - OTC $ 1,778,486 $ - $ 1,778,486 $ 1,305,772 $ - $ 472,714 Liabilities for bonds sold under repurchase agreements 26,173,198 - 26,173,198 22,965,253 - 3,207,945 Accounts payable for securities purchased 10,208,538 2,617,500 7,591,038 - - 7,591,038

$ 38,160,222 $ 2,617,500 $ 35,542,722 $ 24,271,025 $ - $ 11,271,697

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51. CAPITAL MANAGEMENT

SinoPac Financial Holdings

a. Overview

The Group’s capital management goals are as follows:

As a basic target, the Group’s eligible capital should be sufficient to meet their operating needs and should be higher than the required minimum capital adequacy ratio. Eligible capital and legal capital are calculated under regulations pronounced by the authorities.

The Group’s should also have adequate capital to bear its risks, should measure capital demand on the basis of risk combinations and risk characteristics, and should optimize resource and capital allocation through risk management.

b. Capital management procedure

The Group’s capital adequacy ratio should meet the regulations set by the authorities. Also, the Group’s should maintain capital adequacy ratio by considering the business scale, major operating strategy, risk conditions, eligible capital structure, future capital increase plan, etc. The Group’s reports to the authorities regularly. Overseas subsidiaries’ capital management is in accordance with local regulations.

The Group’s capital maintenance is in accordance with the “Regulations Governing the Consolidated Capital Adequacy of Financial Holding Companies”, “Regulations Governing the Capital Adequacy and Capital Category of Banks”, “Regulations Governing Securities Firms” etc., and is managed by the Group’s risk management and financing divisions.

Bank SinoPac

a. Overview

Bank SinoPac and its subsidiaries’ capital management goals are as follows:

Bank SinoPac and its subsidiaries basic target is to have an eligible capital that is sufficient to meet its operating needs, and is higher than the required minimum capital adequacy ratio. Eligible capital and legal capital are calculated under the regulations set by the authorities.

Bank SinoPac and its subsidiaries should have adequate capital to bear its risks, should measure capital demand on the basis of risk combinations and risk characteristics, and should optimize resource and capital allocation through risk management.

b. Capital management procedure

Bank SinoPac and its subsidiaries’ capital adequacy ratio should meet the regulations set by the authorities. Also, Bank SinoPac and its subsidiaries should maintain capital adequacy ratio by considering the business scale, major operating strategy, risk conditions, eligible capital structure, future capital increase plan, etc. Bank SinoPac and its subsidiaries reports to the authorities regularly. Overseas subsidiaries’ capital management is in accordance with local regulations.

Bank SinoPac and its subsidiaries’ capital maintenance is in accordance with “Regulations Governing the Capital Adequacy and Capital Category of Banks”, etc., and is managed by the Bank SinoPac and its subsidiaries’ risk management and financing divisions.

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SinoPac Securities

As part of coping with its business scale requirements, key operational plans and future capital projects, SinoPac Securities complies with Article 59 of the Regulations Governing Securities Firms on the calculation of a capital adequacy ratio based on operating risks and its capital structure. Thus, for maintaining stable operations, SinoPac Securities’ capital adequacy ratio, in principle, is at least 250% for its capital adequacy management objectives.

SinoPac Securities’ capital adequacy management procedures are as follows:

a. The risk management division should calculate, monitor and analyze its capital adequacy ratio regular monthly basis, and be approval by the general manager and chairman of the Board.

b. The risk management division simulates the capital adequacy ratio based on SinoPac Securities’ business plan, policy direction, investment strategy, important event, and provide to the relevant units.

c. If SinoPac Securities’ capital adequacy ratio seems to be falling below the target, the risk management division should put forward to the management echelon in order to adopt the response manner as the follows, and execute after the board’s approve.

1) Issuance of financial bonds.

2) Capital increase.

3) Adjustment of business strategies.

52. CROSS-SELLING INFORMATION

For the three months ended March 31, 2021 and 2020, Bank SinoPac charged SinoPac Securities for $2,604 and $1,099, respectively, as opening accounts. The rental fees Bank SinoPac had charged SinoPac Securities were $751 for the three months ended March 31, 2020.

The bonuses Bank SinoPac paid to SinoPac Securities were $1,086 and $1,104 for the three months ended March 31, 2021 and 2020 as part of cross-selling agreement.

The bonus payments for the three months ended March 31, 2021 and 2020 made by Bank SinoPac from SinoPac Leasing were $87 and $124 as a part of the cross-selling agreement.

The bonuses Bank SinoPac paid to SinoPac Leasing were $7 for the three months ended March 31, 2021 as part of cross-selling agreement.

The bonuses Bank SinoPac paid to SinoPac Venture Capital were $3 for the three months ended March 31, 2021 as part of cross-selling agreement.

For other transactions within the Group, please refer to Note 45 and Table 11.

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53. BUSINESS SEGMENT FINANCIAL INFORMATION

For the Three Months Ended March 31, 2021

(In Thousands of New Taiwan Dollars)

Business Segment Venture Banking Security Others Consolidated Item Capital Net interest revenue $ 4,852,715 $ 279,150 $ 131 $ 96,771 $ 5,228,767 Net revenues other than interest 3,272,360 2,930,256 168,491 149,342 6,520,449 Net revenues 8,125,075 3,209,406 168,622 246,113 11,749,216 Bad debts expense, commitment and reversal of guarantee liability (provision) (489,874) (292) - 113,424 (376,742) Operating expenses (3,870,144) (1,984,401) (6,923) (277,271) (6,138,739) Profit (loss) from continuing operations before tax 3,765,057 1,224,713 161,699 82,266 5,233,735 Income tax (expenses) benefit (553,456) (199,835) (6,639) (62,802) (822,732) Net income 3,211,601 1,024,878 155,060 19,464 4,411,003

For the Three Months Ended March 31, 2020

(In Thousands of New Taiwan Dollars)

Business Segment Venture Banking Security Others Consolidated Item Capital Net interest revenue $ 4,032,204 $ 204,517 $ 850 $ 91,823 $ 4,329,394 Net revenues other than interest 3,413,054 1,359,525 (401,466) 82,183 4,453,296 Net revenues 7,445,258 1,564,042 (400,616) 174,006 8,782,690 Bad debts expense, commitment and reversal of guarantee liability (provision) (685,977) 851 - 69,330 (615,796) Operating expenses (3,651,203) (1,455,695) (6,623) (228,579) (5,342,100) Profit (loss) from continuing operations before tax 3,108,078 109,198 (407,239) 14,757 2,824,794 Income tax (expenses) revenues (489,667) 5,623 14,970 (1,366) (470,440) Net income (loss) 2,618,411 114,821 (392,269) 13,391 2,354,354

54. PROFITABILITY

SinoPac Holdings and Its Subsidiaries

(%)

Items March 31, 2021 March 31, 2020 Before income tax 0.24 0.15 Return on total assets After income tax 0.20 0.13 Before income tax 3.33 1.92 Return on net worth After income tax 2.80 1.60 Profit margin 37.54 26.81

Note 1: Return on total assets = Income before (after) income tax ÷ Average total assets

Note 2: Return on net worth = Income before (after) income tax ÷ Average net worth (included non-controlling interests)

Note 3: Profit margin = Income after income tax ÷ Net revenues

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Note 4: Income before (after) tax represents income for the three months ended March 31, 2021 and 2020.

SinoPac Holdings

(%)

Items March 31, 2021 March 31, 2020 Before income tax 2.45 1.36 Return on total assets After income tax 2.45 1.38 Before income tax 2.80 1.58 Return on net worth After income tax 2.80 1.60 Profit margin 97.96 98.51

Note 1: Return on total assets = Income before (after) income tax ÷ Average total assets

Note 2: Return on net worth = Income before (after) income tax ÷ Average net worth

Note 3: Profit margin = Income after income tax ÷ Net revenues

Note 4: Income before (after) tax represents income for the three months ended March 31, 2021 and 2020.

Bank SinoPac

(%)

Items March 31, 2021 March 31, 2020 Before income tax 0.19 0.18 Return on total assets After income tax 0.16 0.15 Before income tax 2.66 2.31 Return on net worth After income tax 2.27 1.96 Profit margin 40.41 35.91

Note 1: Return on total assets = Income before (after) income tax ÷ Average total assets

Note 2: Return on net worth = Income before (after) income tax ÷ Average net worth

Note 3: Profit margin = Income after income tax ÷ Net revenues

Note 4: Income before (after) tax represents income for the three months ended March 31, 2021 and 2020.

SinoPac Securities

(%)

Items March 31, 2021 March 31, 2020 Before income tax 1.17 0.08 Return on total assets After income tax 1.00 0.12 Before income tax 4.08 0.26 Return on net worth After income tax 3.49 0.40 Profit margin 36.08 7.94

Note 1: Return on total assets = Income before (after) income tax ÷ Average total assets

Note 2: Return on net worth = Income before (after) income tax ÷ Average net worth

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Note 3: Profit margin = Income after income tax ÷ Net revenues

Note 4: Income before (after) tax represents income for the three months ended March 31, 2021 and 2020.

55. ADDITIONAL DISCLOSURES

a. Significant transactions and b. following is the additional information required for the Company and investees:

1) Financing provided: Table 1 (under certain regulations, Bank SinoPac and Bank SinoPac (China) are exempt from making related disclosure requirements)

2) Endorsement/guarantee provided: Table 2 (under certain regulations, Bank SinoPac and Bank SinoPac (China) are exempt from making related disclosure requirements)

3) Marketable securities held: Table 3 (Bank SinoPac, Bank SinoPac (China), SinoPac Securities and SinoPac Securities (Asia) are excluded from related disclosure requirements under the Criteria Governing the Preparation of Financial Reports by Public Banks and the Criteria Governing the Preparation of Financial Reports by Securities Firms)

4) Marketable securities acquired and disposed of, at costs or prices of at least NT$300 million or 10% of the issued capital: Table 4

5) Acquired and disposed of investment, at costs or prices of at least NT$300 million or 10% of the issued capital: Table 4

6) Acquisition of individual real estate at prices of at least NT$300 million or 10% of the issued capital: None

7) Disposal of individual real estate at prices of at least NT$300 million or 10% of the issued capital: None

8) Allowance for service fees to related parties of at least NT$5 million: None

9) Securitization product offered by a subsidiary and under government approval in accordance with the Financial Asset Securitization Act or the Real Estate Securitization Act, and related information: None

10) Receivables from related parties amounting to at least NT$300 million or 10% of the issued capital: Table 5

11) Sale of nonperforming loans: None

12) The related information and proportionate share in investees: Not required for disclosure in quarterly report

13) Derivative financial transactions: Note 8

14) Other material transactions which will affect the decisions of financial report users: Tables 6 to 16

15) The book value of the maximum credit risk exposure of the financial assets: Table 6

16) Allowance for discounts and loans: Table 7

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17) Allowance for accounts receivables: Table 8

18) Change in allowance for debt instrument at fair value through other comprehensive income: Table 9

19) Change in allowance for debt instrument at amortized cost: Table 10

20) Related party transactions: Table 11

21) Balance sheets of SPH: Table 12

22) Comprehensive income statements of SPH: Table 13

23) Statement of changes in equity of SPH: Table 14

24) Statements of cash flows of SPH: Table 15

25) Statement of balance sheet and comprehensive income of SPH’s subsidiaries: Table 16

26) Public announcements prescribed in financial holding company ACT Article 46: Not required for disclosure in quarterly report

27) Other significant transactions which may affect the decisions of users of financial reports: None

c. Information related to investment in Mainland China: Table 17

d. Information on major shareholders: None

56. SEGMENT INFORMATION

The main business of the Company is the investment in and management of its subsidiaries. On the basis of the chief decision maker’s resource allocation and department performance review, the Group has divided, business segments by type of services and products provided. The accounting standards and policies mentioned in Note 4 apply to of the business segments under IFRS 8 “Operating Segments”. The Group operating segments for the three months ended March 31, 2021 and 2020 are without change. The Group reports the following:

Banking - comprise Bank SinoPac and its subsidiaries; provides commercial banking, money lending and investment, insurance agent, insurance brokerage services.

Securities - comprise SinoPac Securities and its subsidiaries; provides securities dealing, future brokerage, securities dealing and future consulting, investment consulting and asset management services.

Venture Capital - comprise SinoPac Venture Capital; provides venture capital services.

Other business segments - comprises SinoPac Leasing and its subsidiaries, SinoPac Securities Investment Trust, and other investment were not identified to disclose as on individual segment.

The Group’ segment revenue, operating results and segment assets are shown in the following table.

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Segment revenues and results

(In Thousands of New Taiwan Dollars)

For the Three Months Ended March 31, 2021 Nonoperating Segments Operating Banking Security Venture Capital Others (Including Total Segments Intercompany Transactions) Net interest revenue $ 4,842,212 $ 282,503 $ 233 $ 121,400 $ 5,246,348 $ (17,581) $ 5,228,767 Interest income 7,010,914 366,989 264 184,330 7,562,497 (10,175) 7,552,322 Interest expenses (2,168,702) (84,486) (31) (62,930) (2,316,149) (7,406) (2,323,555) Service fee and commissions income, net 2,527,503 2,329,539 - 44,998 4,902,040 (1,657) 4,900,383 Others 749,189 624,409 168,494 137,511 1,679,603 (59,537) 1,620,066 Total net revenue 8,118,904 3,236,451 168,727 303,909 11,827,991 (78,775) 11,749,216 Income (loss) Bad debts expense, commitment and reversal of guarantee liability (provision) (489,874) (292) - 113,424 (376,742) - (376,742) Operating expenses (3,887,507) (1,998,007) (7,707) (196,829) (6,090,050) (48,689) (6,138,739) Depreciation and amortization expense (372,077) (129,928) (1,189) (60,114) (563,308) 27,348 (535,960) Profit (loss) from continuing operations before tax 3,741,523 1,238,152 161,020 220,504 5,361,199 (127,464) 5,233,735 Income tax (expense) benefit (553,456) (199,835) (6,639) (71,423) (831,353) 8,621 (822,732) Net income (loss) 3,188,067 1,038,317 154,381 149,081 4,529,846 (118,843) 4,411,003 Nonoperating Segments Operating Banking Security Venture Capital Others (Including Total Segments Intercompany Transactions) Investments accounted for using equity method $ - $ - 100,062 $ 515,176 $ 615,238 $ - $ 615,238 Asset Total assets 2,046,929,420 153,031,524 3,175,790 25,547,911 2,228,684,645 (15,021,754) 2,213,662,891

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Segment revenues and results

(In Thousands of New Taiwan Dollars)

For the Three Months Ended March 31, 2020 Nonoperating Segments Operating Banking Security Venture Capital Others (Including Total Segments Intercompany Transactions) Net interest revenue $ 4,027,068 $ 202,996 $ 1,361 $ 127,225 $ 4,358,650 $ (29,256) $ 4,329,394 Interest income 7,933,343 400,684 1,400 209,986 8,545,413 (19,099) 8,526,314 Interest expenses (3,906,275) (197,688) (39) (82,761) (4,186,763) (10,157) (4,196,920) Service fee and commissions income, net 2,394,945 1,481,716 - 51,011 3,927,672 458 3,928,130 Others 1,039,020 (116,636) (401,465) 65,242 586,161 (60,995) 525,166 Total net revenue 7,461,033 1,568,076 (400,104) 243,478 8,872,483 (89,793) 8,782,690 Income (loss) Bad debts expense, commitment and reversal of guarantee liability (provision) (685,977) 851 - 69,330 (615,796) - (615,796) Operating expenses (3,668,624) (1,468,708) (7,380) (178,141) (5,322,853) (19,247) (5,342,100) Depreciation and amortization expense (334,819) (133,827) (1,162) (48,822) (518,630) 27,318 (491,312) Profit (loss) from continuing operations before tax 3,106,432 100,219 (407,484) 134,667 2,933,834 (109,040) 2,824,794 Income tax (expense) benefit (489,667) 5,623 14,970 (35,822) (504,896) 34,456 (470,440) Net income (loss) 2,616,765 105,842 (392,514) 98,845 2,428,938 (74,584) 2,354,354 Nonoperating Segments Operating Banking Security Venture Capital Others (Including Total Segments Intercompany Transactions) Investments accounted for using equity method $ - $ - $ 99,389 $ 406,876 $ 506,265 $ - $ 506,265 Asset Total assets 1,781,375,774 123,674,418 2,502,745 20,145,802 1,927,698,739 (12,189,105) 1,915,509,634

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TABLE 1

SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND INVESTEES

FINANCING PROVIDED FOR THE THREE MONTHS ENDED MARCH 31, 2021 (In Thousands of New Taiwan Dollars)

Collateral Financing Financing Maximum Amount Financial Ending Interest Rate Transaction Financing Allowance for Limit for Each Company’s No. Financier Counterparty Related Parties Balance for the Actually Financing Type Statement Account Balance (%) Amount Reasons Bad Debt Item Value Borrowing Financing Period Drawn Company Amount Limit

1 SinoPac Leasing Oakpark Construction Co., Ltd. Other receivable No $ 9,425 $ 9,425 $ 9,425 2.00-15.90 Short-term $ - Operating use $ 4,670 Real estate $ 14,777 $ 1,331,191 $ 1,774,922 financing (Note 2) (Note 2) Chih Yu Construction Co., Ltd. Other receivable No 68,810 68,810 68,810 2.00-15.90 Short-term - Operating use 34,743 Real estate 115,292 1,331,191 1,774,922 financing (Note 2) (Note 2) I-HWA Industrial Co., Ltd. Other receivable No 87,500 80,000 80,000 2.00-15.90 Short-term - Operating use 870 - - 1,331,191 1,774,922 financing (Note 2) (Note 2) Hsiang-Ming Fishery Co., Ltd. Other receivable No 120,000 105,000 105,000 2.00-15.90 Short-term - Operating use 1,109 - - 1,331,191 1,774,922 financing (Note 2) (Note 2) ET Pet Co., Ltd. Other receivable No 89,117 72,686 72,686 2.00-15.90 Short-term - Operating use 742 - - 1,331,191 1,774,922 financing (Note 2) (Note 2) VESP Technology Corporation Other receivable No 47,266 39,034 39,034 2.00-15.90 Short-term - Operating use 397 - - 1,331,191 1,774,922 financing (Note 2) (Note 2) TAROKO Entertainment Co. Ltd. Other receivable No 40,000 40,000 - 2.00-15.90 Short-term - Operating use - - - 1,331,191 1,774,922 financing (Note 2) (Note 2) Gold Seal International Co. Ltd. Other receivable No 40,000 40,000 10,000 2.00-15.90 Short-term - Operating use 109 Deposit 1,000 1,331,191 1,774,922 financing (Note 2) (Note 2) Enterex (Cambodia) Industrial Co. Ltd. Other receivable No 11,889 11,889 11,889 2.00-15.90 Short-term - Operating use 135 Certificates of 8,489 1,331,191 1,774,922 financing deposit (Note 2) (Note 2) Credit guarantee fund Te Fu Umbrella Co. Ltd. Other receivable No 4,755 4,755 4,755 2.00-15.90 Short-term - Operating use 8 Certificates of 3,709 1,331,191 1,774,922 financing deposit (Note 2) (Note 2) Credit guarantee fund

2 SinoPac Securities (Cayman) SinoPac Securities (Asia) Other receivable Yes 2,567,939 2,567,939 855,980 1.52850 Short-term - Operating use - - - 3,466,119 3,466,119 (Note 4) (Note 4) (Note 4) financing (Note 4) (Note 4)

Note 1: The table is based on regulations from TWSE that Ending Balance refers to the amount lent to individuals, and the Amount Actually Drawn refers to the actual amount lent within the previously mentioned amount.

Note 2: The financial limit for each borrowing company and the financing company’s financing amount limits are 30% and 40% of the reviewed net worth $4,437,305 of SinoPac Leasing as of March 31, 2021, respectively. The financial limit to each subsidiary of SinoPac Leasing is 40% of its reviewed net worth.

Note 3: SinoPac Leasing lent to ten individuals. The ending balance of Oakpark Construction Co., Ltd. and Chih Yu Construction Co., Ltd. were reclassified to non-performing loans.

Note 4: In June 2019 and August 2020, the board of directors of SinoPac Securities (Cayman) processed the credit line of US$30,000 thousand and US$60,000 thousand. The maximum balance and the ending balance were based on the credit line of US$90,000 thousand (NT$2,567,939). The credit line for individual and total financing amount calculated based on the net worth of SinoPac Securities (Cayman) as of March 31, 2021 was equal to US$121,479 thousand (NT$3,466,119). As of March 31, 2021, the actual balance of US$30,000 thousand (NT$855,980) had been eliminated in consolidated report.

Note 5: Foreign currency amounts translated to NTD at spot exchange rate on balance sheet date.

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TABLE 2

SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND INVESTEES

ENDORSEMENT/GUARANTEE PROVIDED FOR THE THREE MONTHS ENDED MARCH 31, 2020 (In Thousands of New Taiwan Dollars)

Counterparty Ratio of Accumulated Limits on Endorsement/ Maximum Endorsement/ Endorsement/ Amount of Endorsement/ Individual Maximum Guarantee Endorsement/ Guarantee Given Guarantee Given Endorsement/Guarantee Amount Actually Endorsement/ Guarantee Given No. Nature of Endorsement/ Balance for the Ending Balance Amount Guarantee by Parent on on Behalf of Provider Name Drawn Guarantee to Net by Subsidiaries on Relationship Guarantee Period Collateralized by Amounts Behalf of Companies in Asset Value of the Behalf of Parent Amounts Properties Allowable Subsidiaries Mainland China Latest Financial Statement (%)

1 SinoPac Leasing SinoPac Capital International Limited Subsidiary $ 35,498,440 $ 3,851,908 $ 1,141,306 $ - $ - 25.72 $ 35,498,440 Y N N (Note 1) SinoPac International Leasing Corp. Subsidiary 35,498,440 4,063,160 4,063,160 667,060 - 91.57 35,498,440 Y N Y (Note 1) SinoPac Leasing (Tianjin) Co., Ltd. Subsidiary 35,498,440 1,758,181 959,267 173,935 - 21.62 35,498,440 Y N Y (Note 1) SinoPac Capital International (HK) Subsidiary 35,498,440 9,815,232 9,815,232 4,824,158 - 221.20 35,498,440 Y N N Limited (Note 1)

2 SinoPac Venture Capital SinoPac Leasing Affiliate 1,563,634 407,174 407,174 - - 13.02 3,127,268 N N N (Note 2)

Note 1: The limit on individual endorsement or guarantee amounts is up to 200% of the net worth of SinoPac Leasing. The maximum amount of endorsement or guarantee is 800% of the net worth of SinoPac Leasing. But the amount of endorsement or guarantee is 800% of the worth of the subsidiaries of SinoPac Leasing, which held by more than 50%. The reviewed net worth of SinoPac Leasing as of March 31, 2021 was $4,437,305.

Note 2: Endorsement or guarantee cannot exceed the net worth of SinoPac Venture Capital the reviewed net worth as of March 31, 2021 was $3,127,268.

Note 3: Foreign-currency amounts were translated to New Taiwan dollars at the spot exchange rates on the balance sheet date.

Note 4: Guarantee given by parent on behalf of subsidiaries, by subsidiaries on behalf of parent and on behalf of companies in Mainland China filled in Y.

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TABLE 3

SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND INVESTEES

MARKETABLE SECURITIES HELD MARCH 31, 2021 (In Thousands of New Taiwan Dollars or Shares)

March 31, 2021 Percentage Relationship with Holding Market Value Holding Company Type And Issuer of Marketable Securities Financial Statement Account Shares/Units/ Carrying of Note Company or Net Asset Face Amount Amount Ownership Value (%)

SinoPac Financial Holdings Stock Taiwan Depository And Clearing Corporation - Financial assets at fair value through 323 $ 22,781 0.08 $ 22,781 other comprehensive income

SinoPac Futures Stock Taiwan Futures Exchange (TAIFEX) - Financial assets at fair value through 919 55,040 0.25 55,040 other comprehensive income GME Group Inc. - Financial assets at fair value through 20 116,554 0.01 116,554 other comprehensive income Taiwan Cement Corp. - Financial assets at fair value through 578 27,027 0.01 27,027 other comprehensive income Feng Hsin Steel Co., Ltd. - Financial assets at fair value through 7 498 - 498 other comprehensive income Huaku Development Co., Ltd. - Financial assets at fair value through 4 373 - 373 other comprehensive income Mega Financial Holding Co., Ltd. - Financial assets at fair value through 8 255 - 255 other comprehensive income CTBC Financial Holding Co., Ltd. - Financial assets at fair value through 9 199 - 199 other comprehensive income Taiwan Mobile Co., Ltd. - Financial assets at fair value through 2 196 - 196 other comprehensive income Wistron Corporation - Financial assets at fair value through 15 503 - 503 other comprehensive income Far EasTone Telecommunications Co., Ltd. - Financial assets at fair value through 4 256 - 256 other comprehensive income CTCI Corporation - Financial assets at fair value through 12 455 - 455 other comprehensive income Fund SinoPac TWD Money Market Fund Fund under SinoPac Securities Financial assets at fair value through 2,140 30,028 - 30,028 Investment Trust Corporation’s profit or loss management Yuanta Taiwan High-yield Leading Company - Financial assets at fair value through 727 10,756 - 10,756 Fund profit or loss Cathay US Treasury 20+ YR Inv 1X ETF - Financial assets at fair value through 2,500 38,525 - 38,525 profit or loss

(Continued)

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March 31, 2021 Percentage Relationship with Holding Market Value Holding Company Type And Issuer of Marketable Securities Financial Statement Account Shares/Units/ Carrying of Note Company or Net Asset Face Amount Amount Ownership Value (%)

SinoPac Venture Capital Stock Taigen Biopharmaceuticals Holdings Limited Related party Financial assets at fair value through 21,064 $ 532,923 2.94 532,923 profit or loss Aerowin Technology Corporation - Financial assets at fair value through 620 8,556 0.90 8,556 profit or loss TBI Motion Technology Co., Ltd. - Financial assets at fair value through 1,239 72,853 1.32 72,853 profit or loss Kuang Hong Arts Management In Corporation - Financial assets at fair value through 993 58,919 3.31 58,919 profit or loss MOSA Industrial Corporation - Financial assets at fair value through 1,698 65,910 0.93 65,910 profit or loss 3S Silicon Tech, Inc. - Financial assets at fair value through 1,594 17,980 6.78 17,980 profit or loss Throughtek (tutk) - Financial assets at fair value through 436 9,745 1.68 9,745 profit or loss Centera Photonics Inc. SinoPac Venture Capital is the Financial assets at fair value through 3,127 104,129 9.75 104,129 Company’s corporate director profit or loss M2 Communication Inc. SinoPac Venture Capital is the Financial assets at fair value through 392 5,311 4.38 5,311 Company’s corporate director profit or loss Protectlife International Biomedical Inc. SinoPac Venture Capital is the Financial assets at fair value through 2,000 36,000 6.05 36,000 Company’s corporate profit or loss supervisors Andros Pharmaceuticals Co., Ltd. SinoPac Venture Capital is the Financial assets at fair value through 2,040 36,638 8.02 36,638 Company’s corporate director profit or loss Knowledge Freeway Co., Ltd. SinoPac Venture Capital is the Financial assets at fair value through 572 11,108 11.44 11,108 Company’s corporate director profit or loss J-metrics Technology Co., Ltd. - Financial assets at fair value through 1,200 36,192 4.44 36,192 profit or loss Taisys Technologies Co., Ltd. - Financial assets at fair value through 379 5,442 1.66 5,442 profit or loss DA HO Marketing Co., Ltd. - Financial assets at fair value through 1,050 21,368 12.20 21,368 profit or loss New Micropore, Inc. SinoPac Venture Capital is the Financial assets at fair value through 1,000 - 10.00 - Company’s corporate profit or loss supervisors Toyo Automation Co., Ltd. - Financial assets at fair value through 778 94,726 3.27 94,726 profit or loss YFY Biotech Management Company - Financial assets at fair value through 3,693 93,670 5.00 93,670 profit or loss Global Investment Holdings - Financial assets at fair value through 705 2,884 2.50 2,884 profit or loss Boston Life Science Venture Co. - Financial assets at fair value through 3,689 4,870 5.00 4,870 profit or loss Maxima Capital Management SinoPac Venture Capital is the Financial assets at fair value through 52 2,276 9.39 2,276 Company’s corporate director profit or loss

(Continued)

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March 31, 2021 Percentage Relationship with Holding Market Value Holding Company Type And Issuer of Marketable Securities Financial Statement Account Shares/Units/ Carrying of Note Company or Net Asset Face Amount Amount Ownership Value (%)

Taiwan Incubator Small & Medium SinoPac Venture Capital is the Financial assets at fair value through 3,417 $ 35,610 4.84 $ 35,610 Enterprises Development Corp. Company’s corporate director profit or loss Wellgen Medical Co., Ltd. SinoPac Venture Capital is the Financial assets at fair value through 1,400 14,224 14.40 14,224 Company’s corporate director profit or loss Wellgen Medical Co., Ltd. (Preferred stock) SinoPac Venture Capital is the Financial assets at fair value through 230 4,025 2.37 4,025 Company’s corporate director profit or loss Taiwania Capital Buffalo II Bioventures, LP - Financial assets at fair value through - 91,925 1.69 91,925 profit or loss iXensor Co., Ltd. - Financial assets at fair value through 1,026 17,647 1.96 17,647 profit or loss Asia Metal Industries, Inc. - Financial assets at fair value through 849 50,431 4.04 50,431 profit or loss Hantop Intelligence Technology Corporation SinoPac Venture Capital is the Financial assets at fair value through 1,250 26,875 10.21 26,875 Company’s corporate profit or loss supervisors Annji Pharmaceutical Co., Ltd. SinoPac Venture Capital is the Financial assets at fair value through 40,000 72,800 15.10 72,800 Company’s corporate director profit or loss Evergreen Steel Corporation - Financial assets at fair value through 1,473 85,360 0.37 85,360 profit or loss Active Technology Engineering Inc. SinoPac Venture Capital is the Financial assets at fair value through 1,240 24,800 9.99 24,800 Company’s corporate director profit or loss Lian Hong Art Company Limited - Financial assets at fair value through 128 11,006 0.38 11,006 profit or loss Infinity Communication Tech. Inc. (Preferred - Financial assets at fair value through 2,000 20,000 2.70 20,000 stock) profit or loss Morrison OPTO-Electronics Ltd. - Financial assets at fair value through 550 40,800 3.14 40,800 profit or loss Biogend Therapeutics Co., Ltd. - Financial assets at fair value through 596 18,208 0.59 18,208 profit or loss Hui-Min Environment Tech Corp. - Financial assets at fair value through 1,000 35,000 2.84 35,000 profit or loss OBIGEN PHARMA, INC. - Financial assets at fair value through 1,000 20,000 1.51 20,000 profit or loss Clean Air Technology Limited - Financial assets at fair value through 1,150 41,975 3.59 41,975 profit or loss Impinj, Inc. - Financial assets at fair value through 54 89,244 0.24 89,244 profit or loss Asia Best Healthcare Co., Ltd. - Financial assets at fair value through 11 49,761 1.60 49,761 profit or loss CGK International Co., Ltd. - Financial assets at fair value through 1,800 37,998 4.90 37,998 profit or loss MiCareo Inc. SinoPac Venture Capital is the Financial assets at fair value through 6,033 - 14.77 - Company’s corporate director profit or loss Transound Electronics Co., Ltd. - Financial assets at fair value through 1,800 32,652 4.70 32,652 profit or loss

(Continued)

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March 31, 2021 Percentage Relationship with Holding Market Value Holding Company Type And Issuer of Marketable Securities Financial Statement Account Shares/Units/ Carrying of Note Company or Net Asset Face Amount Amount Ownership Value (%)

Apollo Medical Optics Inc. - Financial assets at fair value through 1,666 $ 18,250 5.05 $ 18,250 profit or loss Loyalty Alliance Enterprise Corp. - Financial assets at fair value through 607 456 0.51 456 profit or loss Amphastar Pharmaceuticals, Inc. - Financial assets at fair value through 7 4,047 0.02 4,047 profit or loss Telexpress Corp. SinoPac Venture Capital is the Financial assets at fair value through 542 2,916 3.31 2,916 Company’s corporate other comprehensive income supervisors Taiwan Cultural - Creative Development Co., SinoPac Venture Capital is the Financial assets at fair value through 1,700 20,740 8.50 20,740 Ltd. Company’s corporate director other comprehensive income Lian An Services Co., Ltd. SinoPac Venture Capital is the Financial assets at fair value through 125 1,091 5.00 1,091 Company’s corporate director other comprehensive income If Mobile Technology Co., Ltd. SinoPac Venture Capital is the Financial assets at fair value through 1,500 22,020 16.13 22,020 Company’s corporate director other comprehensive income Ecrowd Media Inc. Affiliate of SPH board of director Financial assets at fair value through 1,862 39,418 9.19 39,418 other comprehensive income Mei Ta Industrial Co., Ltd. - Financial assets at fair value through 211 184,060 0.49 184,060 other comprehensive income Sheng Ho Energy Co., Ltd. SinoPac Venture Capital is the Financial assets at fair value through 3,496 37,168 9.99 37,168 Company’s corporate director other comprehensive income Brightman Optoelectronics (Cayman) Co., Ltd. - Financial assets at fair value through 855 40,062 11.69 40,062 other comprehensive income Neutron Innovation (BVI) Limited - Financial assets at fair value through 1,568 28,249 6.02 28,249 other comprehensive income Winking Entertainment Ltd. - Financial assets at fair value through 967 11,982 1.65 11,982 other comprehensive income Mozido C-1 - Financial assets at fair value through 59 567 0.01 567 other comprehensive income Mozido C-2 - Financial assets at fair value through 258 2,454 0.05 2,454 other comprehensive income

SinoPac Securities Investment Trust Co., Ltd. Fund SinoPac TAIEX ETF Fund under SinoPac Securities Financial assets at fair value through 6 513 - 513 Investment Trust Corporation’s profit or loss management

SinoPac Securities Venture Capital Stock Greenfiltec Ltd. - Financial assets at fair value through 700 80,500 5.71 80,500 profit or loss SUNWAY BIOTECH CO., LTD. - Financial assets at fair value through 440 27,254 1.33 27,254 profit or loss

(Continued)

- 154 -

March 31, 2021 Percentage Relationship with Holding Market Value Holding Company Type And Issuer of Marketable Securities Financial Statement Account Shares/Units/ Carrying of Note Company or Net Asset Face Amount Amount Ownership Value (%)

Bioptic Inc. - Financial assets at fair value through 979 $ 34,253 5.61 $ 34,253 profit or loss Hui-Min Environment Tech Corp. - Financial assets at fair value through 1,500 52,500 4.27 52,500 profit or loss Taiwan Bio Therapeutics Co., Ltd. - Financial assets at fair value through 1,000 15,000 3.03 15,000 profit or loss Green Shepherd Corporation - Financial assets at fair value through 350 8,050 4.23 8,050 profit or loss GREAT GIANT FIBRE GARMENT CO., - Financial assets at fair value through 200 24,266 0.40 24,266 LTD. profit or loss

SinoPac Capital (Asia) Ltd. Bond SDBC 4.2 01/19/27 CNH - Financial assets at fair value through 1,000 4,624 - 4,624 profit or loss CGB 3.6 06/27/28 - Financial assets at fair value through 1,500 6,837 - 6,837 profit or loss MS 4 01/03/22 EMTN - Financial assets at fair value through 1,020 4,467 - 4,467 profit or loss QNBK 5.2 06/07/21 EMTN - Financial assets at fair value through 5,500 24,002 - 24,002 profit or loss MS 4.1 09/25/23 EMTN - Financial assets at fair value through 7,483 33,263 - 33,263 profit or loss C 3.3 05/22/24 GMTN - Financial assets at fair value through 3,520 15,355 - 15,355 profit or loss ADBCH 3.4 11/06/24 - Financial assets at fair value through 5,000 22,122 - 22,122 profit or loss CCB 2.95 03/19/22 - Financial assets at fair value through 15,000 65,211 - 65,211 profit or loss SOCGEN 3.5 07/09/26 EMTN - Financial assets at fair value through 10,000 43,228 - 43,228 profit or loss CNOOC 3.875 05/02/22 REGS - Financial assets at fair value through 400 11,759 - 11,759 profit or loss NIPLIF V5 10/18/42 REGS - Financial assets at fair value through 200 5,998 - 5,998 profit or loss BIDU 3.5 11/28/22 - Financial assets at fair value through 280 8,317 - 8,317 profit or loss NIPLIF V5.1 10/16/44 REGS - Financial assets at fair value through 700 22,129 - 22,129 profit or loss SAIL 2004-10 M1 - Financial assets at fair value through 6,748 18,498 - 18,498 profit or loss MQGAU 4.875 06/10/25 REGS - Financial assets at fair value through 100 3,167 - 3,167 profit or loss ANZ 4.4 05/19/26 REGS - Financial assets at fair value through 500 15,955 - 15,955 profit or loss GS 5.95 01/15/27 - Financial assets at fair value through 30 1,032 - 1,032 profit or loss

(Continued)

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March 31, 2021 Percentage Relationship with Holding Market Value Holding Company Type And Issuer of Marketable Securities Financial Statement Account Shares/Units/ Carrying of Note Company or Net Asset Face Amount Amount Ownership Value (%)

XINAOG 3.25 07/24/22 - Financial assets at fair value through 2,420 $ 70,785 - $ 70,785 profit or loss CICCHK F 04/25/21 EMTN - Financial assets at fair value through 2,200 62,770 - 62,770 profit or loss BOCAVI F 05/21/25 GMTN - Financial assets at fair value through 500 14,266 - 14,266 profit or loss POHANG 4 08/01/23 REGS - Financial assets at fair value through 500 15,270 - 15,270 profit or loss CDBLFU F 11/15/21 EMTN - Financial assets at fair value through 2,000 57,066 - 57,066 profit or loss HYNMTR F 07/08/21 REGS - Financial assets at fair value through 1,500 42,809 - 42,809 profit or loss AGRBK F 01/28/22 FRCD - Financial assets at fair value through 15,000 429,742 - 429,742 profit or loss WB 3.5 07/05/24 - Financial assets at fair value through 2,000 60,018 - 60,018 profit or loss APICOR F 09/22/21 - Financial assets at fair value through 3,000 85,737 - 85,737 profit or loss CABEI F 11/15/24 EMTN - Financial assets at fair value through 1,000 28,803 - 28,803 profit or loss ZHZHCC 3.8 11/14/22 - Financial assets at fair value through 200 5,808 - 5,808 profit or loss CHSCOI V4 PERP - Financial assets at fair value through 1,000 28,895 - 28,895 profit or loss JXWCIG 3.4 12/05/22 - Financial assets at fair value through 500 14,414 - 14,414 profit or loss ABIBB 4.7 02/01/36 REGS - Financial assets at fair value through 150 4,984 - 4,984 profit or loss ANZ V2.95 07/22/30 REGS - Financial assets at fair value through 200 5,884 - 5,884 profit or loss CSSSHI 2.5 02/13/25 - Financial assets at fair value through 2,000 56,841 - 56,841 profit or loss MQGAU 3.624 06/03/30 REGS - Financial assets at fair value through 400 11,643 - 11,643 profit or loss CS V2.193 06/05/26 REGS - Financial assets at fair value through 2,000 57,796 - 57,796 profit or loss CHMEDA 1.875 06/17/25 - Financial assets at fair value through 200 5,670 - 5,670 profit or loss HUADIA V3.375 PERP - Financial assets at fair value through 200 5,869 - 5,869 profit or loss CNPCCH 1.35 06/23/25 - Financial assets at fair value through 1,000 28,040 - 28,040 profit or loss COSL 1.875 06/24/25 - Financial assets at fair value through 500 14,003 - 14,003 profit or loss SHINFN 1.35 01/10/26 REGS - Financial assets at fair value through 2,000 56,517 - 56,517 profit or loss

(Continued)

- 156 -

March 31, 2021 Percentage Relationship with Holding Market Value Holding Company Type And Issuer of Marketable Securities Financial Statement Account Shares/Units/ Carrying of Note Company or Net Asset Face Amount Amount Ownership Value (%)

POWINV 1.625 07/27/25 EMTN - Financial assets at fair value through 200 $ 5,632 - $ 5,632 profit or loss HSBC V1.645 04/18/26 - Financial assets at fair value through 500 14,260 - 14,260 profit or loss OCBCSP V1.832 09/10/30 REGS - Financial assets at fair value through 2,000 56,554 - 56,554 profit or loss TINGYI 1.625 09/24/25 - Financial assets at fair value through 2,200 61,459 - 61,459 profit or loss HSBC V2.013 09/22/28 - Financial assets at fair value through 500 13,999 - 13,999 profit or loss MARUB 1.319 09/18/25 - Financial assets at fair value through 1,000 28,065 - 28,065 profit or loss TAISEM 0.75 09/28/25 REGS - Financial assets at fair value through 500 13,904 - 13,904 profit or loss TAISEM 1 09/28/27 REGS - Financial assets at fair value through 500 13,697 - 13,697 profit or loss TAISEM 1.375 09/28/30 REGS - Financial assets at fair value through 500 13,165 - 13,165 profit or loss BIDU 1.72 04/09/26 - Financial assets at fair value through 300 8,512 - 8,512 profit or loss MEITUAN 2.125% 28OCT2025 - Financial assets at fair value through 400 11,338 - 11,338 profit or loss SINO TRENDY INVST 2.95% 30OCT2025 - Financial assets at fair value through 300 8,069 - 8,069 profit or loss GUAMET 4.3 12/18/21 EMTN - Financial assets at fair value through 200 5,824 - 5,824 profit or loss IMYLIG 1.625 11/19/25 - Financial assets at fair value through 1,000 28,016 - 28,016 profit or loss PEMEX 6.49 01/23/27 REGS - Financial assets at fair value through 3 89 - 89 profit or loss SAUDI ARABIAN OIL CO 1.625% - Financial assets at fair value through 600 17,173 - 17,173 24NOV2025 profit or loss SAUDI ARABIAN OIL CO 1.25% - Financial assets at fair value through 200 5,749 - 5,749 24NOV2023 profit or loss MIZUHO FIN GRP CAYMAN 3 4.6% - Financial assets at fair value through 400 12,460 - 12,460 27MAR2024 profit or loss AIRPORT AUTHORITY HK 2.1% PERP - Financial assets at fair value through 2,000 57,075 - 57,075 profit or loss AIRPORT AUTHORITY HK 2.4% PERP - Financial assets at fair value through 1,000 28,249 - 28,249 profit or loss HSBC HOLDINGS PLC 4.6% PERP - Financial assets at fair value through 200 5,632 - 5,632 profit or loss MACQUARIE GROUP LTD 1.34% - Financial assets at fair value through 400 11,179 - 11,179 12JAN2027 profit or loss NIPPON LIFE INSURANCE 2.75% - Financial assets at fair value through 500 13,556 - 13,556 21JAN2051 profit or loss

(Continued)

- 157 -

March 31, 2021 Percentage Relationship with Holding Market Value Holding Company Type And Issuer of Marketable Securities Financial Statement Account Shares/Units/ Carrying of Note Company or Net Asset Face Amount Amount Ownership Value (%)

CICC HK FINANCE 2016 MTN 2% - Financial assets at fair value through 500 $ 14,161 - $ 14,161 26JAN2026 profit or loss CICC HK FINANCE 2016 MTN 1.625% - Financial assets at fair value through 1,000 28,590 - 28,590 26JAN2024 profit or loss CH OVS GRAND OCE FINANCE 2.45% - Financial assets at fair value through 200 5,695 - 5,695 09FEB2026 profit or loss CDBL FUNDING TWO 1.375% 04MAR2024 - Financial assets at fair value through 2,000 56,833 - 56,833 profit or loss LEVC FINANCE LTD 1.375% 25MAR2024 - Financial assets at fair value through 200 5,719 - 5,719 profit or loss ADCBUH F 06/20/24 EMTN - Financial assets at fair value through 5,000 142,169 - 142,169 other comprehensive income HYNMTR 2.375 02/10/23 REGS - Financial assets at fair value through 500 14,634 - 14,634 other comprehensive income QIBKQD F 02/07/25 EMTN - Financial assets at fair value through 6,000 172,270 - 172,270 other comprehensive income CABEI F 04/17/22 EMTN - Financial assets at fair value through 5,000 143,573 - 143,573 other comprehensive income HPHTSP 2.875 11/05/24 - Financial assets at fair value through 8,000 239,452 - 239,452 other comprehensive income TAISEM 1 09/28/27 - Financial assets at fair value through 3,000 82,182 - 82,182 other comprehensive income SINOPE 1.45 01/08/26 - Financial assets at fair value through 4,000 112,525 - 112,525 other comprehensive income HYNMTR 1.3 01/08/26 - Financial assets at fair value through 1,000 27,783 - 27,783 other comprehensive income HYNMTR 1.8 01/08/28 - Financial assets at fair value through 1,000 27,144 - 27,144 other comprehensive income QNBK 1 3/8 01/26/26 - Financial assets at fair value through 2,000 55,594 - 55,594 other comprehensive income CNOOC 4 1/2 10/03/23 - Financial assets at fair value through 4,000 123,420 - 123,420 other comprehensive income CHIOLI 3.95 11/15/22 - Financial assets at fair value through 500 14,838 - 14,838 other comprehensive income FORCAY 3 3/8 04/22/25 - Financial assets at fair value through 2,200 66,167 - 66,167 other comprehensive income FUBBAN 4.08 01/09/25 - Financial assets at fair value through 25,000 108,709 - 108,709 other comprehensive income NOMURA 3.25 09/15/25 EMTN - Financial assets at fair value through 10,000 43,484 - 43,484 other comprehensive income

Stock Taiwan Cement Corp. - Financial assets at fair value through 500 23,400 0.01 23,400 other comprehensive income Uni-President Enterprises Corp. - Financial assets at fair value through 425 31,024 0.01 31,024 other comprehensive income

(Continued)

- 158 -

March 31, 2021 Percentage Relationship with Holding Market Value Holding Company Type And Issuer of Marketable Securities Financial Statement Account Shares/Units/ Carrying of Note Company or Net Asset Face Amount Amount Ownership Value (%)

Hon Hai Precision Industry Co., Ltd. - Financial assets at fair value through 60 $ 7,440 - $ 7,440 other comprehensive income ASUSTek Computer Inc - Financial assets at fair value through 20 7,450 - 7,450 other comprehensive income Fubon Financial Holding Co., Ltd. - Financial assets at fair value through 550 31,239 - 31,239 other comprehensive income Mega Financial Holding Co., Ltd. - Financial assets at fair value through 1,200 38,279 0.01 38,279 other comprehensive income Taiwan Mobile Co., Ltd. - Financial assets at fair value through 850 83,468 0.02 83,468 other comprehensive income Continental Holdings Corp. - Financial assets at fair value through 1,000 24,350 0.12 24,350 other comprehensive income

Fund SinoPac Multi Strategy Quant Fund Ltd. Related party Financial assets at fair value through 1 84,039 - 84,039 profit or loss

Note: Foreign-currency amounts were translated to New Taiwan dollars at the exchange rates on the balance sheet date.

(Concluded)

- 159 -

TABLE 4

SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND INVESTEES

ACQUIRED AND DISPOSED OF INVESTMENT AT COST OR PRICES OF AT LEAST NT$300 MILLION OR 10% OF THE ISSUED CAPITAL (MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF, AT COST OR PRICES OF AT LEAST NT$300 MILLION OR 10% OF THE ISSUED CAPITAL) FOR THE THREE MONTHS ENDED MARCH 31, 2021 (In Thousands of New Taiwan Dollars or Shares, Unless Stated Otherwise)

Beginning Balance Acquisition Disposal Ending Balance Type and Name of Company Name Account Counterparty Nature of Relationship Gain (Loss) on Marketable Securities Units Amount Units Amount Units Amount Carrying Value Units Amount Disposal

SinoPac Capital (Asia) C 3.3 05/22/24 GMTN Financial assets at fair value - - - $ - 96,100 CNY 93,989 92,580 CNY 90,584 CNY 90,546 CNY 38 3,520 CNY 3,443 through profit or loss C 3 08/06/30 GMTN Financial assets at fair value - - - CNY - 77,050 CNY 76,542 77,050 CNY 76,624 CNY 76,542 CNY 82 - CNY - through profit or loss KSA 4.5 10/26/46 REGS Financial assets at fair value - - 1,100 US$ 1,339 34,562 US$ 40,252 35,662 US$ 41,604 US$ 41,591 US$ 13 - US$ - through profit or loss HPE 6.35 10/15/45 Financial assets at fair value - - 694 US$ 907 18,501 US$ 24,043 19,195 US$ 24,981 US$ 24,950 US$ 31 - US$ - through profit or loss PEMEX 6.5 03/13/27 REGS Financial assets at fair value - - - US$ - 14,400 US$ 15,124 14,400 US$ 15,127 US$ 15,124 US$ 3 - US$ - through profit or loss MO 5.375 01/31/44 Financial assets at fair value - - 856 US$ 1,093 27,538 US$ 33,624 28,394 US$ 34,753 US$ 34,717 US$ 36 - US$ - through profit or loss ARAMCO 4.25 04/16/39 REGS Financial assets at fair value - - 649 US$ 761 17,391 US$ 19,682 18,040 US$ 20,441 US$ 20,443 ( US$ 2 ) - US$ - through profit or loss NIPPBK 3.81 09/07/21 Financial assets at fair value - - - US$ - 12,000 US$ 12,204 12,000 US$ 12,205 US$ 12,204 US$ 1 - US$ - through profit or loss T 3.65 06/01/51 Financial assets at fair value - - 10 US$ 10 12,838 US$ 12,583 12,848 US$ 12,594 US$ 12,593 US$ 1 - US$ - through profit or loss T 3.3 02/01/52 Financial assets at fair value - - 36 US$ 36 14,940 US$ 13,873 14,976 US$ 13,910 US$ 13,909 US$ 1 - US$ - through profit or loss AGRBK F 01/28/22 FRCD Financial assets at fair value - - - US$ - 15,000 US$ 14,991 - US$ - US$ - US$ - 15,000 US$ 14,991 through profit or loss

Beginning Balance Acquisition Disposal Ending Balance Type and Name of Company Name Account Counterparty Nature of Relationship Settlements Gain (Loss) on Marketable Securities Units Amount Units Amount Units Carrying Value Units Amount Amount Disposal

SinoPac Capital (Asia) HPE 6.35 10/15/45 Financial liabilities at fair value - - - $ - 168 US$ 220 168 US$ 220 US$ 220 US$ - - US$ - through profit or loss PEMEX 6.5 03/13/27 REGS Financial liabilities at fair value - - - US$ - 450 US$ 473 450 US$ 473 US$ 473 US$ - - US$ - through profit or loss MO 5.375 01/31/44 Financial liabilities at fair value - - - US$ - 756 US$ 949 690 US$ 874 US$ 873 US$ 1 66 US$ 76 through profit or loss ARAMCO 4.25 04/16/39 REGS Financial liabilities at fair value - - - US$ - 1,746 US$ 1,948 1,746 US$ 1,948 US$ 1,948 US$ - - US$ - through profit or loss T 3.65 06/01/51 Financial liabilities at fair value - - - US$ - 4,160 US$ 4,261 4,160 US$ 4,265 US$ 4,261 US$ 4 - US$ - through profit or loss

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TABLE 5

SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND INVESTEES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$300 MILLION OR 10% OF THE ISSUED CAPITAL MARCH 31, 2021 (In Thousands of New Taiwan Dollars)

Overdue Amounts Turnover Received in Allowance for Company Name Related Party Relationship Ending Balance Rate Amount Action Taken Subsequent Bad Debts Year

SinoPac Financial Holdings Company Limited Bank SinoPac Subsidiary $ 2,155,716 - $ - - $ - $ - (Note 1) SinoPac Securities Subsidiary 508,336 - - - - - (Note 1)

Bank SinoPac SinoPac Financial Holdings Company Limited Parent company of Bank SinoPac 1,055,191 - - - - - (Note 1)

SinoPac Securities (Cayman) SinoPac Securities (Asia) Subsidiary of SinoPac Securities (Cayman) 855,980 - - - - - (Note 2)

Note 1: The balance mainly included dividends receivable for earnings, linked-tax system receivable (booked as current income tax assets) and other related parties’ receivables, which had been eliminated in the consolidated financial statements.

Note 2: The balance mainly included receivable on financial lending, which had been eliminated in the consolidated financial statements.

- 161 -

TABLE 6

SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND INVESTEES

TOTAL BOOK VALUE OF MAXIMUM CREDIT RISK EXPOSURES FINANCIAL ASSETS MARCH 31, 2021, DECEMBER 31, 2020 AND MARCH 31, 2020 (In Thousands of New Taiwan Dollars)

Principle Allowance The Adjustments Under Regulations Governing the Procedures for March 31, 2021 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Banking Total Total 12 Months ECL Lifetime ECL Lifetime ECL 12 Months ECL Lifetime ECL Lifetime ECL Institutions to Evaluate Assets and Deal with Non-performing/ Non-accrual Loans

Discounts and loans Corporate banking $ 651,110,511 $ 1,867,838 $ 5,434,064 $ 658,412,413 $ 2,009,358 $ 778,551 $ 1,491,302 $ 3,688,713 $ 7,967,924 Consumer banking 543,849,896 4,551,600 1,293,932 549,695,428 212,098 286,788 211,278 6,751,224 7,461,388 Receivables Credit card receivable 16,987,545 224,989 777,777 17,990,311 7,685 10,225 28,188 155,080 201,178 Net accounts receivable - factoring (Note 1) 5,393,224 - - 5,393,224 5,410 - - 129,702 135,112 Other receivable (Note 2) 67,369,387 607,253 565,613 68,542,253 81,733 12,279 469,424 120,196 683,632 Debt instrument at fair value through other comprehensive income 347,457,931 - - 347,457,931 68,121 - - - 68,121 Investments in debt instruments at amortized cost 152,438,095 - - 152,438,095 11,860 - - - 11,860

(Continued)

- 162 -

Principle Allowance The Adjustments Under Regulations Governing the Procedures for December 31, 2020 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Banking Total Total 12 Months ECL Lifetime ECL Lifetime ECL 12 Months ECL Lifetime ECL Lifetime ECL Institutions to Evaluate Assets and Deal with Non-performing/ Non-accrual Loans

Discounts and loans Corporate banking $ 610,826,922 $ 1,633,616 $ 3,584,931 $ 616,045,469 $ 2,043,819 $ 745,597 $ 773,501 $ 4,115,807 $ 7,678,724 Consumer banking 538,566,804 4,376,940 1,339,992 544,283,736 213,181 287,605 225,802 6,660,382 7,386,970 Receivables Credit card receivable 18,097,575 216,740 795,515 19,109,830 8,588 9,986 31,171 151,564 201,309 Net accounts receivable - factoring (Note 1) 7,797,862 - - 7,797,862 11,315 - - 121,173 132,488 Other receivable (Note 2) 62,989,408 553,192 593,382 64,135,982 145,175 23,579 465,083 125,492 759,329 Debt instrument at fair value through other comprehensive income 334,308,283 - - 334,308,283 64,341 - - - 64,341 Investments in debt instruments at amortized cost 162,380,325 - - 162,380,325 11,891 - - - 11,891

Principle Allowance The Adjustments Under Regulations Governing the Procedures for March 31, 2020 Stage 1 Stage 2 Stage 3 Stage 1 Stage 2 Stage 3 Banking Total Total 12 Months ECL Lifetime ECL Lifetime ECL 12 Months ECL Lifetime ECL Lifetime ECL Institutions to Evaluate Assets and Deal with Non-performing/ Non-accrual Loans

Discounts and loans Corporate banking $ 557,387,914 $ 1,507,974 $ 2,460,435 $ 561,356,323 $ 2,034,452 $ 332,675 $ 779,426 $ 3,900,297 $ 7,046,850 Consumer banking 519,466,006 4,621,590 1,550,514 525,638,110 75,593 225,457 270,420 6,502,381 7,073,851 Receivables Credit card receivable 15,613,196 216,719 862,871 16,692,786 4,176 7,613 51,574 148,461 211,824 Net accounts receivable - factoring (Note 1) 8,008,111 - - 8,008,111 9,292 - - 116,221 125,513 Other receivable (Note 2) 49,531,342 1,508,190 466,116 51,505,648 133,069 20,248 419,120 82,858 655,295 Debt instrument at fair value through other comprehensive income 258,499,431 - - 258,499,431 53,317 - - - 53,317 Investments in debt instruments at amortized cost 143,140,266 - - 143,140,266 8,219 - - - 8,219

Note 1: Accounts receivable - factoring and accounts payable - factoring are offset and presented net.

Note 2: Other receivables included nonperforming receivables transferred from other than loans, long-term lease receivables and installment which are classified as other financial assets.

(Concluded)

- 163 -

TABLE 7

SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND INVESTEES

CHANGE IN ALLOWANCE FOR DISCOUNTS AND LOANS FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

The Adjustments Under Regulations Governing the Lifetime ECL Procedures for Lifetime ECL (Non-purchased Impairment in Banking For the Three Months Ended March 31, 2021 12 Months ECL (Collectively or Originated Accordance With Total Institutions to Assessed) Credit-impaired IFRS 9 Evaluate Assets Financial Assets) and Deal with Non-performing/ Non-accrual Loans

Balance, January 1 $ 2,257,000 $ 1,033,202 $ 999,303 $ 4,289,505 $ 10,776,189 $ 15,065,694 Changes due to financial instruments that have been identified at the beginning of the period: To lifetime ECL (4,825) 329,020 (6,993) 317,202 - 317,202 From conversion to credit-impaired financial assets (3,401) (191,717) 491,297 296,179 - 296,179 To 12-month ECL 1,251 (58,629) (2,484) (59,862) - (59,862) Derecognizing financial assets during the current period (807,783) (44,296) (95,278) (947,357) - (947,357) Purchased or originated new financial assets 828,107 21,006 67,858 916,971 - 916,971 The adjustments under regulations governing the procedures for banking institutions to evaluate assets and deal with non-performing/non-accrual loans - - - - (257,687) (257,687) Write-off - - (123,936) (123,936) (75,558) (199,494) Change in model/risk parameters (44,900) (23,529) (37,518) (105,947) - (105,947) Effect of exchange rate changes and others (3,993) 282 410,331 406,620 (3,007) 403,613 Balance, March 31 $ 2,221,456 $ 1,065,339 $ 1,702,580 $ 4,989,375 $ 10,439,937 $ 15,429,312

(Continued)

- 164 -

The Adjustments Under Regulations Governing the Lifetime ECL Procedures for Lifetime ECL Lifetime ECL (Non-purchased Impairment in Banking For the Three Months Ended March 31, 2020 12 Months ECL (Collectively (Individually or Originated Accordance With Total Institutions to Assessed) Assessed) Credit-impaired IFRS 9 Evaluate Assets Financial Assets) and Deal with Non-performing/ Non-accrual Loans

Balance, January 1 $ 1,268,556 $ 720,916 $ 1,503 $ 876,821 $ 2,867,796 $ 10,957,823 $ 13,825,619 Changes due to financial instruments that have been identified at the beginning of the period: To lifetime ECL (784) 113,151 - (17,427) 94,940 - 94,940 From conversion to credit-impaired financial assets (554) (265,344) - 357,639 91,741 - 91,741 To 12-month ECL 775 (80,060) - - (79,285) - (79,285) Derecognizing financial assets during the current period (136,893) (280,303) - (115,026) (532,222) - (532,222) Purchased or originated new financial assets 1,018,434 325,209 - 14,556 1,358,199 - 1,358,199 The adjustments under regulations governing the procedures for banking institutions to evaluate assets and deal with non-performing/non-accrual loans - - - - - (395,826) (395,826) Write-off - - - (245,186) (245,186) (164,763) (409,949) Change in model/risk parameters (38,429) 22,017 - 3,936 (12,476) - (12,476) Effect of exchange rate changes and others (1,060) 1,034 9 174,533 174,516 5,444 179,960 Balance, March 31 $ 2,110,045 $ 556,620 $ 1,512 $ 1,049,846 $ 3,718,023 $ 10,402,678 $ 14,120,701

(Concluded)

- 165 -

TABLE 8

SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND INVESTEES

CHANGES IN ALLOWANCE FOR RECEIVABLES FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

The Adjustments Under Regulations Governing the Lifetime ECL Procedures for Lifetime ECL (Non-purchased Impairment in Banking For the Three Months Ended March 31, 2021 12 Months ECL (Collectively or Originated Accordance With Total Institutions to Assessed) Credit-impaired IFRS 9 Evaluate Assets Financial Assets) and Deal with Non-performing/ Non-accrual Loans

Balance, January 1 $ 165,078 $ 33,565 $ 496,254 $ 694,897 $ 398,229 $ 1,093,126 Changes due to financial instruments that have been identified at the beginning of the period: To lifetime ECL (591) 11,063 (24,825) (14,353) - (14,353) From conversion to credit-impaired financial assets (7) (22,831) 52,740 29,902 - 29,902 To 12-month ECL 149 (947) (8) (806) - (806) Derecognizing financial assets during the current period (45,814) (4,990) (3,916) (54,720) - (54,720) Purchased or originated new financial assets 23,938 789 1,283 26,010 - 26,010 The adjustments under regulations governing the procedures for banking institutions to evaluate assets and deal with non-performing/non-accrual loans - - - - 25,992 25,992 Write-off (1) (146) (23,749) (23,896) (19,305) (43,201) Change in model/risk parameters (51,296) 5,576 (3,074) (48,794) - (48,794) Effect of exchange rate changes and others 3,372 425 2,907 6,704 62 6,766 Balance, March 31 $ 94,828 $ 22,504 $ 497,612 $ 614,944 $ 404,978 $ 1,019,922

Note: Receivables included nonperforming receivables transferred from other than loans, long-term lease receivables and installments which are classified as other financial assets. (Continued)

- 166 -

The Adjustments Under Regulations Governing the Lifetime ECL Procedures for Lifetime ECL (Non-purchased Impairment in Banking For the Three Months Ended March 31, 2020 12 Months ECL (Collectively or Originated Accordance With Total Institutions to Assessed) Credit-impaired IFRS 9 Evaluate Assets Financial Assets) and Deal with Non-performing/ Non-accrual Loans

Balance, January 1 $ 550,630 $ 34,690 $ 571,327 $ 1,156,647 $ 374,588 $ 1,531,235 Changes due to financial instruments that have been identified at the beginning of the period: To lifetime ECL (404,315) 14,831 400,787 11,303 - 11,303 From conversion to credit-impaired financial assets (15) (7,866) 28,694 20,813 - 20,813 To 12-month ECL 157 (1,781) (20) (1,644) - (1,644) Derecognizing financial assets during the current period (30,867) (8,324) (75,165) (114,356) - (114,356) Purchased or originated new financial assets 31,514 907 186 32,607 - 32,607 The adjustments under regulations governing the procedures for banking institutions to evaluate assets and deal with non-performing/non-accrual loans - - - - (4,210) (4,210) Write-off (2) (25) (465,271) (465,298) (23,408) (488,706) Change in model/risk parameters 774 (4,679) (3,404) (7,309) - (7,309) Effect of exchange rate changes and others (1,339) 108 13,560 12,329 570 12,899 Balance, March 31 $ 146,537 $ 27,861 $ 470,694 $ 645,092 $ 347,540 $ 992,632

Note: Receivables included nonperforming receivables transferred from other than loans, long-term lease receivables and installment which are classified as other financial assets.

(Concluded)

- 167 -

TABLE 9

SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND INVESTEES

CHANGE IN ALLOWANCE FOR DEBT INSTRUMENT AT FAIR VALUE THROUGH OHER COMPREHENSIVE INCOME FOR THE THREE MONTH ENDED MARCH 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

Credit Rating For the Three Months Ended Lifetime ECL Lifetime ECL 12 Months Total March 31, 2021 - Not Credit - Credit ECL Impaired Impaired

Balance January 1 $ 64,341 $ - $ - $ 64,341 Purchased new debt instrument 8,380 - - 8,380 Derecognized (4,503) - - (4,503) Change in model/risk parameters - - - - Effect of exchange rate changes and others (97) - - (97) Balance March 31 $ 68,121 $ - $ - $ 68,121

Credit Rating For the Three Months Ended Lifetime ECL Lifetime ECL 12 Months Total March 31, 2020 - Not Credit - Credit ECL Impaired Impaired

Balance January 1 $ 42,003 $ - $ - $ 42,003 Purchased new debt instrument 12,939 - - 12,939 Derecognized (3,238) - - (3,238) Change in model/risk parameters - - - - Effect of exchange rate changes and others 1,613 - - 1,613 Balance March 31 $ 53,317 $ - $ - $ 53,317

- 168 -

TABLE 10

SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND INVESTEES

CHANGE IN ALLOWANCE FOR DEBT INSTRUMENT AT AMORTIZED COST FOR THE THREE MONTH ENDED MARCH 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

Credit Rating For the Three Months Ended Lifetime ECL Lifetime ECL 12 Months Total March 31, 2021 - Not Credit - Credit ECL Impaired Impaired

Balance January 1 $ 11,891 $ - $ - $ 11,891 Purchased new debt instrument - - - - Derecognized - - - - Change in model/risk parameters - - - - Effect of exchange rate changes and others (31) - - (31) Balance March 31 $ 11,860 $ - $ - $ 11,860

Credit Rating For the Three Months Ended Lifetime ECL Lifetime ECL 12 Months Total March 31, 2020 - Not Credit - Credit ECL Impaired Impaired

Balance January 1 $ 8,034 $ - $ - $ 8,034 Purchased new debt instrument 254 - - 254 Derecognized - - - - Change in model/risk parameters - - - - Effect of exchange rate changes and others (69) - - (69) Balance March 31 $ 8,219 $ - $ - $ 8,219

- 169 -

TABLE 11

SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND INVESTEES

RELATED-PARTY TRANSACTIONS FOR THE THREE MONTHS ENDED MARCH 31, 2021 (In Thousands of New Taiwan Dollars)

Transaction Details % to Nature of Number Consolidated Company Name Counterparty Relationship Payment (Note 1) Financial Statement Accounts Amount Net (Note 2) Terms Revenue/Assets (Note 3)

0 SinoPac Financial Holdings Bank SinoPac a Receivables, net $ 1,435,025 Note 4 0.06 Bank SinoPac a Current income tax assets 720,691 Note 4 0.03 Bank SinoPac a Payables 171 Note 4 - Bank SinoPac a Current income tax liabilities 1,055,020 Note 4 0.05 SinoPac Securities a Current income tax assets 508,336 Note 4 0.02 SinoPac Securities a Current income tax liabilities 161,169 Note 4 0.01 SinoPac Securities a Other liabilities 251 Note 4 - SinoPac Leasing a Investments accounted for using equity method 21,499 Note 4 - SinoPac Leasing a Right-of-use assets, net 682,436 Note 4 0.03 SinoPac Leasing a Current income tax liabilities 117,827 Note 4 0.01 SinoPac Leasing a Lease liabilities 707,550 Note 4 0.03 SinoPac Leasing a Interest expenses 8,330 Note 4 0.07 SinoPac Leasing a Depreciation and amortization expense 11,593 Note 4 0.10

1 Bank SinoPac SinoPac Financial Holdings b Receivables, net 171 Note 4 - SinoPac Financial Holdings b Current income tax assets 1,055,020 Note 4 0.05 SinoPac Financial Holdings b Payables 1,435,025 Note 4 0.06 SinoPac Financial Holdings b Current income tax liabilities 720,691 Note 4 0.03 Bank SinoPac (China) Ltd. c-1 Due from the Central Bank and call loans to banks, net 3,772,064 Note 4 0.17 Bank SinoPac (China) Ltd. c-1 Receivables, net 131,133 Note 4 0.01 SinoPac Securities c-1 Securities purchased under resell agreements 830,300 Note 4 0.04 SinoPac Securities c-1 Receivables, net 103 Note 4 - SinoPac Securities c-1 Deposits and remittances 3,091,330 Note 4 0.14 SinoPac Securities c-1 Interest income 1,095 Note 4 0.01 SinoPac Securities c-1 Net other revenue other than interest income 7,976 Note 4 0.07 SinoPac Futures c-1 Financial assets at fair value through profit or loss 9,078 Note 4 - SinoPac Futures c-1 Other assets, net 247,431 Note 4 0.01 SinoPac Futures c-1 Financial liabilities at fair value through profit or loss 4,390 Note 4 - SinoPac Securities Investment Service Corporation c-1 Deposits and remittances 126,080 Note 4 0.01 SinoPac Venture Capital c-1 Deposits and remittances 327,898 Note 4 0.01 SinoPac Leasing c-1 Receivables, net 439 Note 4 - SinoPac Leasing c-1 Discounts and loans, net 900,000 Note 4 0.04 SinoPac Leasing c-1 Investments accounted for using equity method 12,797 Note 4 - SinoPac Leasing c-1 Right-of-use assets, net 634,032 Note 4 0.03

(Continued)

- 170 -

Transaction Details % to Nature of Number Consolidated Company Name Counterparty Relationship Payment (Note 1) Financial Statement Accounts Amount Net (Note 2) Terms Revenue/Assets (Note 3)

SinoPac Leasing c-1 Lease liabilities $ 650,275 Note 4 0.03 SinoPac Leasing c-1 Interest income 2,759 Note 4 0.02 SinoPac Leasing c-1 Interest expenses 7,656 Note 4 0.07 SinoPac Leasing c-1 Depreciation and amortization expense 10,766 Note 4 0.09 SinoPac Capital International Limited c-1 Deposits and remittances 3,306,179 Note 4 0.15 SinoPac Capital International (HK) Limited c-1 Deposits and remittances 1,100,224 Note 4 0.05

2 Bank SinoPac (China) Ltd. Bank SinoPac c-2 Deposits from the central bank and banks 3,772,064 Note 4 0.17 Bank SinoPac c-2 Payables 131,133 Note 4 0.01 SinoPac International Leasing Corp. c-1 Deposits and remittances 200,168 Note 4 0.01

3 SinoPac Securities SinoPac Financial Holdings b Current income tax assets 149,171 Note 4 0.01 SinoPac Financial Holdings b Deferred income tax assets 12,249 Note 4 - SinoPac Financial Holdings b Current income tax liabilities 508,336 Note 4 0.02 Bank SinoPac c-2 Cash and cash equivalents, net 2,066,330 Note 4 0.09 Bank SinoPac c-2 Investments accounted for using equity method 1,452 Note 4 - Bank SinoPac c-2 Other financial assets, net 1,025,000 Note 4 0.05 Bank SinoPac c-2 Right-of-use assets, net 95,013 Note 4 - Bank SinoPac c-2 Securities sold under repurchase agreements 830,300 Note 4 0.04 Bank SinoPac c-2 Payables 103 Note 4 - Bank SinoPac c-2 Lease liabilities 96,475 Note 4 - Bank SinoPac c-2 Interest expenses 1,348 Note 4 0.01 Bank SinoPac c-2 Depreciation and amortization expense 7,733 Note 4 0.07 SinoPac Futures c-1 Other financial assets, net 999,976 Note 4 0.05

4 SinoPac Futures Bank SinoPac c-2 Other financial liabilities 252,119 Note 4 0.01 SinoPac Securities c-2 Other financial liabilities 999,976 Note 4 0.05 SinoPac Securities (Asia) c-1 Other financial assets, net 1,007,806 Note 4 0.05 SinoPac Securities (Asia) c-1 Other financial liabilities 445,962 Note 4 0.02

5 SinoPac Securities Investment Service Bank SinoPac c-2 Cash and cash equivalents, net 61,080 Note 4 - Bank SinoPac c-2 Other financial assets, net 65,000 Note 4 -

6 SinoPac Securities (Cayman) SinoPac Securities (Asia) c-1 Receivables, net 855,980 Note 4 0.04

7 SinoPac Securities (Asia) SinoPac Futures c-2 Other financial assets, net 445,962 Note 4 0.02 SinoPac Futures c-2 Other financial liabilities 1,007,806 Note 4 0.05 SinoPac Securities (Cayman) c-2 Long-term borrowings 855,980 Note 4 0.04

(Continued)

- 171 -

Transaction Details % to Nature of Number Consolidated Company Name Counterparty Relationship Payment (Note 1) Financial Statement Accounts Amount Net (Note 2) Terms Revenue/Assets (Note 3)

8 SinoPac Venture Capital Bank SinoPac c-2 Cash and cash equivalents, net $ 270,833 Note 4 0.01 Bank SinoPac c-2 Other financial assets, net 57,065 Note 4 -

9 SinoPac Leasing SinoPac Financial Holdings b Current income tax assets 70,276 Note 4 - SinoPac Financial Holdings b Deferred income tax assets 47,551 Note 4 - SinoPac Financial Holdings b Net other revenue other than interest income 16,308 Note 4 0.14 Bank SinoPac c-2 Payables 439 Note 4 - Bank SinoPac c-2 Long-term borrowings 900,000 Note 4 0.04 Bank SinoPac c-2 Interest expenses 2,759 Note 4 0.02 Bank SinoPac c-2 Net other revenue other than interest income 14,976 Note 4 0.13

10 SinoPac Capital International Limited Bank SinoPac c-2 Cash and cash equivalents, net 3,306,179 Note 4 0.15

11 SinoPac International Leasing Corp. Bank SinoPac (China) Ltd. c-2 Cash and cash equivalents, net 200,168 Note 4 0.01

12 SinoPac Capital International (HK) Limited Bank SinoPac c-2 Cash and cash equivalents, net 1,100,224 Note 4 0.05

Note 1: The parent company and subsidiaries are identified as follows:

a. Parent company: 0. b. Subsidiaries are numbered in sequence from 1.

Note 2: Flow of transactions with related parties is as follows:

a. From parent company to subsidiary b. From subsidiary to parent company. c-1. Subsidiary A to subsidiary B. c-2. Subsidiary B to subsidiary A.

On the above transaction between parent company and subsidiaries, category a and c-1 of the related - party will post on the iXBRL based on the Taiwan Stock Exchange under letter No. 1030005380.

Note 3: In the computation of percentage of revenue/assets, if the amount is the ending balance of assets or liabilities, the accounts percentage will be the balance dividing the consolidated assets; if the amount is income or expense, the accounts percentage will be the amount dividing by the consolidated net revenues in the same year.

Note 4: On the transactions between the Company and related parties, the terms were similar to those for unrelated parties.

(Concluded)

- 172 -

TABLE 12

SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED

BALANCE SHEETS MARCH 31, 2021, DECEMBER 31, 2020 AND MARCH 31, 2020 (In Thousands of New Taiwan Dollars)

March 31, 2021 December 31, March 31, 2020 March 31, 2021 December 31, March 31, 2020 ASSETS (Reviewed) 2020 (Audited) (Reviewed) LIABILITIES AND EQUITY (Reviewed) 2020 (Audited) (Reviewed)

CASH AND CASH EQUIVALENTS $ 39,050 $ 139,602 $ 67,802 COMMERCIAL PAPERS ISSUED, NET $ 13,896,425 $ 13,845,624 $ 14,551,666

FINANCIAL ASSETS AT FAIR VALUE THROUGH PAYABLES 108,589 143,346 69,277 OTHER COMPREHENSIVE INCOME 22,781 21,806 9,843 CURRENT INCOME TAX LIABILITIES 3,175,628 2,718,159 2,617,082 RECEIVABLES, NET 1,435,158 1,435,159 1,435,184 CORPORATE BONDS PAYABLES 4,994,276 4,993,991 4,993,189 CURRENT INCOME TAX ASSETS 1,420,886 967,749 1,254,341 PREFERRED STOCK LIABILITIES 18,437 18,437 18,437 INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD, NET 178,073,583 175,033,952 165,448,767 PROVISIONS 19,450 19,092 17,178

PROPERTIES AND EQUIPMENT, NET 15,863 13,147 11,316 LEASE LIABILITIES 718,932 728,785 743,879

RIGHT-OF-USE ASSETS, NET 693,795 706,859 733,829 OTHER LIABILITIES 22,404 22,404 13,620

INTANGIBLE ASSETS, NET 1,476 1,594 1,040 Total liabilities 22,954,141 22,489,838 23,024,328

DEFERRED INCOME TAX ASSETS 6,642 6,621 3,238 EQUITY Capital stock OTHER ASSETS, NET 29,294 33,081 29,953 Common stock 112,710,541 112,710,541 112,710,541 Capital surplus 2,228,764 2,228,764 2,228,764 Retained earnings Legal reserve 19,171,226 19,171,226 17,951,839 Special reserve 483,818 483,818 849,362 Unappropriated earnings 21,832,196 16,909,609 15,357,472 Total retained earnings 41,487,240 36,564,653 34,158,673 Other equity 2,357,842 4,365,774 (3,126,993)

Total equity 158,784,387 155,869,732 145,970,985

TOTAL $ 181,738,528 $ 178,359,570 $ 168,995,313 TOTAL $ 181,738,528 $ 178,359,570 $ 168,995,313

- 173 -

TABLE 13

SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED

STATEMENTS OF COMPREHENSIVE INCOME FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

For the Three Months Ended March 31 2021 2020

REVENUES Share of profit of subsidiaries and associates for using equity method $ 4,536,954 $ 2,437,012 Others 367 111

EXPENSES AND LOSSES Operating expenses (100,317) (69,973) Others (34,622) (47,252)

PROFIT FROM CONTINUING OPERATIONS BEFORE TAX 4,402,382 2,319,898

INCOME TAX BENEFIT 8,621 34,456

NET INCOME 4,411,003 2,354,354

OTHER COMPREHENSIVE INCOME FOR THE PERIOD (1,496,348) (4,745,748)

TOTAL COMPREHENSIVE INCOME $ 2,914,655 $ (2,391,394)

BASIC EARNINGS PER SHARE $0.39 $0.21

DILUTED EARNINGS PER SHARE $0.39 $0.21

- 174 -

TABLE 14

SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED

STATEMENTS OF CHANGES IN EQUITY FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise) (Reviewed, Not Audited)

Other Equity Unrealized Gain Changes in (Loss) on Fair Value of Exchange Financial Assets Financial Differences on at Fair Value Liability Retained Earnings Translating through Other Attributable to Unappropriated Foreign Comprehensive Charge in Credit Common Stock Capital Surplus Legal Reserve Special Reserve Earnings Total Operations Income Risk of Liability Total Total Equity

BALANCE AT JANUARY 1, 2020 $ 112,710,541 $ 2,228,771 $ 17,951,839 $ 849,362 $ 13,468,498 $ 32,269,699 $ (1,339,209 ) $ 2,560,626 $ (68,042 ) $ 1,153,375 $ 148,362,386

Other changes in capital surplus Changes in capital surplus from investments in associates and joint ventures accounted for using the equity method - (7 ) ------(7 )

Net profit for the three months ended March 31, 2020 - - - - 2,354,354 2,354,354 - - - - 2,354,354

Other comprehensive income for the three months ended March 31, 2020, net of income tax ------(88,087 ) (4,646,340 ) (11,321 ) (4,745,748 ) (4,745,748 )

Total comprehensive income for the three months ended March 31, 2020 - - - - 2,354,354 2,354,354 (88,087 ) (4,646,340 ) (11,321 ) (4,745,748 ) (2,391,394 )

Disposal of investments in equity instruments designated at fair value through other comprehensive income - - - - (465,380 ) (465,380 ) - 465,380 - 465,380 -

BALANCE AT MARCH 31, 2020 $ 112,710,541 $ 2,228,764 $ 17,951,839 $ 849,362 $ 15,357,472 $ 34,158,673 $ (1,427,296 ) $ (1,620,334 ) $ (79,363 ) $ (3,126,993 ) $ 145,970,985

BALANCE AT JANUARY 1, 2021 $ 112,710,541 $ 2,228,764 $ 19,171,226 $ 483,818 $ 16,909,609 $ 36,564,653 $ (1,593,696 ) $ 6,041,813 $ (82,343 ) $ 4,365,774 $ 155,869,732

Net profit for the three months ended March 31, 2021 - - - - 4,411,003 4,411,003 - - - - 4,411,003

Other comprehensive income for the three months ended March 31, 2021, net of income tax ------(75,058 ) (1,424,341 ) 3,051 (1,496,348 ) (1,496,348 )

Total comprehensive income for the three months ended March 31, 2021 - - - - 4,411,003 4,411,003 (75,058 ) (1,424,341 ) 3,051 (1,496,348 ) 2,914,655

Disposal of investments in equity instruments designated at fair value through other comprehensive income - - - - 511,584 511,584 - (511,584 ) - (511,584 ) -

BALANCE AT MARCH 31, 2021 $ 112,710,541 $ 2,228,764 $ 19,171,226 $ 483,818 $ 21,832,196 $ 41,487,240 $ (1,668,754 ) $ 4,105,888 $ (79,292 ) $ 2,357,842 $ 158,784,387

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TABLE 15

SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED

STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

For the Three Months Ended March 31 2021 2020

CASH FLOWS FROM OPERATING ACTIVITIES Profit from continuing operations before tax $ 4,402,382 $ 2,319,898 Adjustments for: Depreciation expenses 14,513 14,968 Amortization expenses 119 96 Interest expenses 34,539 46,789 Interest income (367) (111) Net change in other provisions 1 3 Share of profit of subsidiaries for using equity method (4,536,954) (2,437,012) Changes in operating assets and liabilities Decrease in receivables - 16,564 Decrease in other assets 3,886 424 Decrease in payables (5,213) (63,802) Decrease in provisions for employee benefits (58) (247) Interest received 268 10 Interest paid (55,404) (29,261) Income tax received 12,932 -

Net cash used in operating activities (129,356) (131,681)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of properties and equipment (3,750) (3,817)

Net cash used in investing activities (3,750) (3,817)

CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in commercial papers issued 50,801 (4,918,626) Corporate bonds issued - 5,000,000 Payments of lease liabilities (18,247) (18,539)

Net cash generated from financing activities 32,554 62,835

NET DECREASE IN CASH AND CASH EQUIVALENTS (100,552) (72,663)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD 139,602 140,465

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD $ 39,050 $ 67,802

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TABLE 16-1

Bank SinoPac

Balance Sheets March 31, 2021 and 2020 (In Thousands of New Taiwan Dollars)

Assets March 31, 2021 March 31, 2020 Liabilities March 31, 2021 March 31, 2020

Cash and cash equivalents $ 19,221,986 $ 14,738,211 Deposits from the Central Bank and banks $ 82,991,515 $ 58,000,550 Due to the Central Bank and banks 118,350 - Due from the Central Bank and call loans to banks 147,736,825 125,924,780 Financial liabilities at fair value through profit or loss 15,709,249 20,280,821 Financial assets at fair value through profit or loss 43,011,707 69,796,000 Securities sold under repurchase agreements 13,605,676 6,707,512 Financial assets at fair value through other comprehensive income 341,800,104 246,071,473 Payables 17,112,344 17,765,204 Investments in debt instruments measured at amortized cost 152,426,235 143,132,047 Current income tax liabilities 819,507 1,019,978 Securities purchased under resell agreements 63,778,418 23,662,935 Deposits and remittances 1,671,168,770 1,441,637,009 Receivables, net 43,621,155 40,675,091 Bank debentures 45,078,979 36,140,437 Current income tax assets 1,255,536 1,336,205 Other financial liabilities 7,319,602 29,655,073 Discounts and loans, net 1,155,433,239 1,047,479,180 Provisions 3,153,960 2,993,587 Investments accounted for using equity method 9,580,964 10,010,843 Lease liabilities 2,402,422 2,060,891 Other financial assets, net 8,514,856 10,162,587 Deferred income tax liabilities 756,224 809,288 Property and equipment, net 9,290,823 9,152,209 Other liabilities 3,290,718 2,321,629 Right-of-use assets, net 2,389,368 2,079,503 Total liabilities 1,863,527,316 1,619,391,979 Investment property, net 1,044,223 1,085,393 Intangible assets, net 1,466,142 1,373,901 Equity Deferred income tax assets 1,260,962 1,362,457 Other assets, net 2,849,428 5,259,392 Capital stock 86,061,159 86,061,159 Capital surplus 12,147,640 12,147,640 Retained earnings 40,361,333 37,106,589 Other equity 2,584,523 (1,405,160) Total equity 141,154,655 133,910,228

Total assets $ 2,004,681,971 $ 1,753,302,207 Total liabilities and equity $ 2,004,681,971 $ 1,753,302,207

(Continued)

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Bank SinoPac

Statements of Comprehensive Income For the Three Months Ended March 31, 2021 and 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

For the Three Months Ended March 31 2021 2020

Interest income $ 6,594,035 $ 7,590,057 Interest expenses (2,014,910) (3,722,926) Net interest revenue 4,579,125 3,867,131 Net revenues other than interest 3,310,401 3,420,045 Net revenue 7,889,526 7,287,176 Bad debts expense, commitment and guarantee liability provision (446,205) (691,819) Operating expenses (3,701,897) (3,504,835) Profit from continuing operations before tax 3,741,424 3,090,522 Income tax expense (553,357) (473,757) Net income 3,188,067 2,616,765 Other comprehensive income (1,699,684) (2,374,554)

Total comprehensive income for the period $ 1,488,383 $ 242,211

Basic earnings per share $0.37 $0.30

(Concluded)

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TABLE 16-2

SinoPac Securities

Balance Sheets March 31, 2021 and 2020 (In Thousands of New Taiwan Dollars)

Assets March 31, 2021 March 31, 2020

Current assets $ 55,776,292 $ 42,790,202 Current financial assets at fair value through profit or loss 31,606,596 21,055,622 Current financial assets at fair value through other comprehensive income 5,865,757 9,324,256 Non-current financial assets at fair value through profit or loss 154,354 157,000 Non-current financial assets at fair value through other comprehensive income 3,855,173 5,169,509 Investments accounted for using equity method 7,372,332 6,281,603 Property and equipment, net 1,831,412 1,824,878 Right-of-use assets, net 415,893 414,108 Investment property, net 382,094 385,712 Intangible assets 443,084 485,581 Deferred income tax assets 580,481 554,639 Other non-current assets 1,130,324 1,167,132

Total assets $ 109,413,792 $ 89,610,242

Liabilities

Current liabilities $ 75,523,971 $ 60,984,227 Current lease liabilities 140,603 136,213 Bonds payable 2,434,836 2,000,000 Deferred income tax liabilities 103,896 141,332 Non-current lease liabilities 274,965 275,832 Other non-current liabilities 541,081 446,256 Total liabilities 79,019,352 63,983,860

Equity

Capital stock 16,212,238 16,212,238 Capital surplus 476,766 476,766 Retained earnings 13,492,642 10,312,021 Other equity 212,794 (1,374,643) Total equity 30,394,440 25,626,382

Total liabilities and equity $ 109,413,792 $ 89,610,242 (Continued)

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SinoPac Securities

Statements of Comprehensive Income For the Three Months Ended March 31, 2021 and 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

For the Three Months Ended March 31 2021 2020

Revenue $ 2,878,180 $ 1,333,407 Commission fees (132,292) (80,862) Employee benefits expense (1,248,561) (780,417) Share of profit (loss) of subsidiaries for using equity method 132,881 78,278 Other operating expenditure (53,244) (150,429) Other operating expense (398,291) (359,646) Other gains and losses 35,090 28,989 Profit from continuing operations before tax 1,213,763 69,320 Income tax (expense) benefit (175,446) 36,522 Net income 1,038,317 105,842 Other comprehensive income 214,990 (2,269,283)

Total comprehensive income $ 1,253,307 $ (2,163,441)

Basic earnings per share $0.64 $0.07

(Concluded)

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TABLE 16-3

SinoPac Venture Capital Corporation

Balance Sheets March 31, 2021 and 2020 (In Thousands of New Taiwan Dollars)

Assets March 31, 2021 March 31, 2020

Current assets $ 537,575 $ 658,146 Financial assets at fair value through profit or loss 2,064,594 1,383,676 Financial assets at fair value through other comprehensive income 390,727 257,814 Investments accounted for using equity method 100,062 107,273 Property and equipment, net 3,950 5,573 Right-of-use assets, net 6,619 9,170 Deferred income tax assets 71,861 77,316 Other assets 402 398

Total assets $ 3,175,790 $ 2,499,366

Liabilities

Payables $ 10,784 $ 10,158 Current liabilities 20,315 12,935 Deferred income tax liabilities 10,602 10,721 Lease liabilities 6,716 9,243 Other liabilities 105 16 Total liabilities 48,522 43,073

Equity

Capital stock 2,500,000 2,500,000 Capital surplus 1,885 1,885 Retained earnings 765,062 185,514 Other equity (139,679) (231,106) Total equity 3,127,268 2,456,293

Total liabilities and equity $ 3,175,790 $ 2,499,366 (Continued)

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SinoPac Venture Capital Corporation

Statements of Comprehensive Income For the Three Months Ended March 31, 2021 and 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

For the Three Months Ended March 31 2021 2020

Operating revenues (losses) $ 168,422 $ (403,043) Operating expenses (7,707) (7,380) Operating income (loss) 160,715 (410,423) Nonoperating income and expenses 305 2,939 Profit (loss) from continuing operations before tax 161,020 (407,484) Income tax (expense) benefit (6,639) 14,970 Net income (loss) 154,381 (392,514) Other comprehensive income (2,212) (88,165)

Total comprehensive income for the period $ 152,169 $ (480,679)

Basic earnings per share $0.62 $(1.57)

(Concluded)

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TABLE 16-4

SinoPac Securities Investment Trust Co., Ltd.

Balance Sheets March 31, 2021 and 2020 (In Thousands of New Taiwan Dollars)

Assets March 31, 2021 March 31, 2020

Current assets $ 989,826 $ 877,307 Financial assets at fair value through profit or loss 513 116,386 Investments accounted for using equity method 515,176 406,876 Property and equipment, net 7,142 7,353 Right-of-use assets, net 26,691 37,097 Intangible assets 1,256 2,440 Deferred income tax assets 11,845 7,790 Other assets 123,741 128,845

Total assets $ 1,676,190 $ 1,584,094

Liabilities

Current liabilities $ 18,741 $ 23,004 Lease liabilities 27,010 37,369 Deferred income tax liabilities 18,488 4,089 Other noncurrent liabilities 3,193 17,094 Total liabilities 67,432 81,556

Equity

Capital stock 1,420,000 1,420,000 Capital surplus 844 844 Retained earnings 218,987 129,350 Other equity (31,073) (47,656) Total equity 1,608,758 1,502,538

Total liabilities and equity $ 1,676,190 $ 1,584,094 (Continued)

- 183 -

SinoPac Securities Investment Trust Co., Ltd.

Statements of Comprehensive Income For the Three Months Ended March 31, 2021 and 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

For the Three Months Ended March 31 2021 2020

Operating revenues $ 51,576 $ 63,206 Operating expenses (55,563) (63,129) Operating (loss) income (3,987) 77 Share of profit (loss) of associates accounted for using the equity method 32,866 1,898 Nonoperating income and expenses 1,059 4,444 Profit from continuing operations before tax 29,938 6,419 Income tax expense (5,975) (980) Net income 23,963 5,439 Other comprehensive income (3,295) (5,627)

Total comprehensive income for the period $ 20,668 $ (188)

Basic earnings per share $0.17 $0.04

(Concluded)

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TABLE 16-5

SinoPac Leasing Co., Ltd.

Balance Sheets March 31, 2021 and 2020 (In Thousands of New Taiwan Dollars)

Assets March 31, 2021 March 31, 2020

Current assets $ 1,807,347 $ 1,399,070 Investments accounted for using equity method 8,411,461 5,392,236 Property and equipment, net 371,220 241,237 Right-of-use assets, net 26,488 28,461 Investment property, net 5,825,506 5,893,062 Intangible assets 4,550 6,256 Deferred income tax assets 187,744 135,176 Other noncurrent assets 586,198 414,365

Total assets $ 17,220,514 $ 13,509,863

Liabilities

Current liabilities $ 8,029,233 $ 5,149,907 Lease liabilities - current 21,966 24,866 Current income tax liabilities 14,125 18,447 Long-term borrowings 3,448,851 2,500,000 Lease liabilities - noncurrent 387,249 400,551 Deferred income tax liabilities 581,538 559,914 Other noncurrent liabilities 300,247 223,855 Total liabilities 12,783,209 8,877,540

Equity

Capital stock 4,681,044 4,681,044 Capital surplus 1,498 1,498 Retained earnings 171,080 152,864 Other equity (416,317) (203,083) Total equity 4,437,305 4,632,323

Total liabilities and equity $ 17,220,514 $ 13,509,863 (Continued)

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SinoPac Leasing Co., Ltd.

Statements of Comprehensive Income For the Three Months Ended March 31, 2021 and 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

For the Three Months Ended March 31 2021 2020

Operating revenues $ 107,978 $ 82,955 Operating costs (89,793) (80,096) (Bad debts expenses) reversal of bad debts expenses (11,702) 84,815 Operating expenses (62,547) (60,336) Operating (loss) income (56,064) 27,338 Nonoperating income and expenses 209,139 92,018 Profit for continuing operations before tax 153,075 119,356 Income tax expense (27,958) (25,949) Net income 125,117 93,407 Other comprehensive income (7,122) (2,460)

Total comprehensive income for the period $ 117,995 $ 90,947

Basic earnings per share $0.27 $0.20

(Concluded)

- 186 -

TABLE 17

SINOPAC FINANCIAL HOLDINGS COMPANY LIMITED AND SUBSIDIARIES

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE THREE MONTHS ENDED MARCH 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Accumulated Investment Flows Accumulated Percentage Accumulated Outflow of Outflow of Net Income (Loss) Equity in the Total Amount of of Carrying Value Inward Investee Company Main Businesses and Products Method of Investment Investment from Investment from of the Investment Earnings (Losses) Paid-in Capital Outflow Inflow Ownership (Note 1) Remittance of Taiwan as of Taiwan as of (Note 1) (Note 1) (%) Earnings January 1, 2021 March 31, 2021

Golden Trust SinoPac Fund Management Co., Fund raising and sale, asset management $ 869,672 Investment in Mainland China directly $ 426,139 $ - $ - $ 426,139 $ 67,074 49.00 $ 32,866 $ 515,176 $ - Ltd. business approved by CSRC

Telexpress (Shanghai) Co., Ltd. Management consultant 44,696 Investment in Mainland China companies 13,666 - - 13,666 (2,550 ) 34.21 - 13,666 - through an existing company established in a third region

Yangzhou Brightman International Co., Ltd. Panel thinning 618,280 Investment in Mainland China companies 66,502 - - 66,502 (10,649 ) 11.69 - 66,502 - through an existing company established in a third region

Zhong Shan Dong Yi Technology Co., Ltd. Cover glass 228,261 Investment in Mainland China companies 11,413 - - 11,413 (5,508 ) 4.90 - 11,413 - through an existing company established in a third region

Dong Ming Technology Co., Ltd. Cover glass 18,352 Investment in Mainland China companies 920 - - 920 4,624 4.90 - 920 - through an existing company established in a third region

StreetVoice International Ltd. Design of software and service for 99,435 Investment in Mainland China companies 1,575 - - 1,575 (344 ) 2.51 - 1,575 - computer system integration through an existing company established in a third region

Shanghai Winking Entertainment Ltd. Design development and manufacture of 467,889 Investment in Mainland China companies 314 - - 314 30,070 1.65 - 314 - software through an existing company established in a third region

Dong Guan Transound Electronics Co., Ltd. Dynamic receiver, dynamic speaker, SMD, 225,889 Investment in Mainland China companies 41,345 - - 41,345 10,536 4.70 - 41,345 - Array, MEMS ECM microphone, ear through an existing company phone module, ear phone, headphone established in a third region

SinoPac International Leasing Corp. Leasing and financing of machinery 844,600 Investment in Mainland China directly 844,600 - - 844,600 85,462 100.00 85,462 1,010,539 - equipment

SinoPac Leasing (Tianjin) Co., Ltd. Leasing and financing of machinery 817,492 Investment in Mainland China directly 817,492 - - 817,492 7,793 100.00 7,793 847,677 - equipment, account receivable factoring, trade receivable financing

Bank SinoPac (China) Ltd. Commercial bank 9,240,895 Investment in Mainland China directly 9,240,895 - - 9,240,895 13,834 100.00 9,309 9,504,918 -

SinoPac Financial Consulting (Shanghai) Ltd. Business management consulting, 57,065 Investment in Mainland China directly 57,065 - - 57,065 (1,280 ) 100.00 (1,280 ) 45,633 - investment consulting, business intelligence consulting

Beijing Sheng Chuang Hui Limited Processing production development of 236,116 Investment in Mainland China companies 23,718 - - 23,718 (8,353 ) 1.26 - 23,718 - cosmetics and sale of self-made product through an existing company established in a third region

Accumulated Investment in Mainland China as of Investment Amounts Authorized by Limit on Investment March 31, 2021 Investment Commission, MOEA

$ 11,545,644 $ 11,557,503 $ 102,354,568 ( US$ 351,459 ) ( US$ 351,875 ) ( CNY 349,000 ) ( CNY 349,000 )

(Continued)

- 187 -

Note 1: Above figures have not been reviewed by independent certified public accountants, except for SinoPac International Leasing Corp., SinoPac Leasing (Tianjin), Bank SinoPac (China) Ltd. and SinoPac Financial Consulting (Shanghai) Ltd. which were reviewed by independent certified public accountants and prepared in conformity with IFRSs.

Note 2: Subsidiary invested in Telexpress (Shanghai) Co., Ltd. via Telexpress Corp.

Note 3: Subsidiary invested in Brightman International Co., Ltd. via Brightman Optoelectronics (Cayman) Co., Ltd.

Note 4: Subsidiary invested in Zhong Shan Dong Yi Technology Co., Ltd. and Dong Ming Technology Co., Ltd. via CGK International Co., Ltd.

Note 5: Subsidiary invested in StreetVoice International Ltd. via Neutron Innovation (BVI) Limited.

Note 6: Subsidiary invested in Shanghai Winking Entertainment Ltd. via Winking Entertainment Ltd.

Note 7: Subsidiary invested in Dong Guan Transound Electronics Co., Ltd. via Transound Electronics Co., Ltd.

Note 8: Subsidiary invested in Beijing Sheng Chuang Hui Limited via Hong Kong Xian-Xing Investment Limited.

Note 9: Foreign currencies are translated to N.T. dollars with current rate of the date of balance sheet, only the gains or losses investments are translated with current year average rate.

(Concluded)

- 188 -