Walsin Lihwa Corporation Meeting Minutes of the 2020 Annual General Meeting

Time: 9:00 AM, Friday, May 29th, 2020 Place: 1F, No.15, Lane 168, HsinShan Road, Neihu District, Taipei In Attendance: The shareholders and those acting as proxy represented 2,648,775,037 shares in total (including the 938,261,309 shares represented by shareholders attending through electronic means), which constituted 79.63% of the 3,325,999,258 total issued and outstanding shares (exclusive of those 1,000 shares with no voting right pursuant to Article 179 of the Company Act). Directors in Attendance: Chiao, Yu-Lon; Cheng Hui-Ming; Chiao, Yu-Hwei; and Ma, Wei-Shin Independent Directors in Attendance: Hsueh, Ming-Ling; Du, King-Ling; and Chen, Shiang-Chung Also in Attendance: Attorney Lin, Cheng-Hsien, Lu-Yu Attorneys-at-Law; Attorney Sun, Shuo-Chun (Alex), Li-Ren Attorneys-at-Law; Certified Public Accountant Wen-Yea, Hsu and Lai, Kuan-Chung, Deloitte & Touche. Chairman: Chiao, Yu-Lon Secretary: Li, Ying-Yao

1.Calling the meeting to order: The total issued and outstanding shares of the Company are 3,325,999,258 (exclusive of those 1,000 shares with no voting right pursuant to Article 179 of the Company Act). The number of shares represented by the present shareholders by 9:00 am was 2,648,449,367 (including 793,181,300 shares represented by shareholders present in person, 917,006,758 shares represented by shareholders acting by proxy, and 938,261,309 shares represented by shareholders attending via electronical means), which constituted a quorum. Pursuant to relevant laws, the Chairman called the meeting to order.

2. Chairman’s Address: (omitted)

3. Matters to be Reported: I. General Manager Report Please review and approve to the Company’s 2019 business report and financial statement.

- 1 - For the business report, balance sheet, consolidated income statement, statement of changes in equity and statement of cash flows, please see the appendix for more details. II. Audit Committee Review Report Please review and approve the Audit Committee examination of the Company's 2019 final account statement (please see the appendix for more details). III. The Distribution Report of Compensation of the Employees and Directors for the Year 2019. Please refer to the appendix for the status of the distribution of compensation to employees and directors for the year 2019. IV. Other Matters to Be Reported (1) Report on the Company's investments in mainland China as of March 31, 2020. Please see pp. 38 to 42 of the Appendix to the Handbook for details. (2) Report on the amendments to the Company's Board of Directors Meeting Regulations: The Company's Board of Directors Meeting Regulations have been amended by a resolution adopted in a board of directors meeting dated February 27, 2020. Please see pp. 43- 50 of the Appendix to the Handbook for the full content of the amended version. (3) Report on the amendments to the Company's regulations regarding corporate governance: The Company's Ethical Corporate Management Best Practice Principles have been amended by a resolution adopted in a board of directors meeting dated August 2, 2019; its Corporate Social Responsibility Practice Principles, Corporate Governance Best Practice Principles and Procedures for Ethical Management and Guidelines for Conduct have been amended by a resolution adopted in a board of directors meeting dated April 10, 2020. Please see pp. 51 - 99 of the Appendix to the Handbook for the full content of the amended version. (4) Report on the status of repurchase of the Company's shares: On April 10, 2020, the Board of Directors resolved to implement the twenty- fourth plan to buy back shares and repurchase 40 million shares of the Company in the centralized exchange market from April 13, 2020 to June 12, 2020 at prices ranging from NT$10.5 to NT$16.5 per share, in order to enhance the rights and interests of the Company's shareholders; however, the

- 2 - repurchase may continue if the share price falls below the lower limit of the repurchase price range. The repurchase of shares has been completed on April 23, 2020, at an average price of NTD 12.95 per share. (5) Report on the shareholdings of directors in the Company as follows: a) According to Article 26 of the Securities and Exchange Act and the Rules and Review Procedures for Director and Supervisor Share Ownership Ratios at Public Companies, the minimum shareholding of the all of the Company's directors shall be 3% of its issued and outstanding shares; provided, however, this does not apply to the supervisors of the Company because the Company has an Audit Committee. The Company has 4 independent directors. The shareholding ratio of all of the directors (excluding the independent directors) is reduced to 80% of the above minimum shareholding ratio. b) For the shareholdings of individuals and total directors recorded in the shareholder register prior to the book closure date for the 2020 Annual Shareholders' Meeting, please see pp. 100 of the Appendix to the Handbook. c) The shareholdings of all of the Company's directors have all met the requirement for the statutory shareholding ratio. (6) Report on the status of shareholders' proposals and nomination for the 2020 Annual Shareholders' Meeting: During the period from March 13, 2020 to March, 23, 2020, none of the shareholders submitted any written proposal or nomination to the Company during the period of nomination according to Article 172-1 and Article 192- 1 of Company Act. (Please visit the Market Observation Post System and select the electronic books of the Appendix to the Handbook; website: http://mops.twse.com.tw)

4. Matters to Be Ratified, Discussed and Elected Proposal 1 Proposed by the board of directors Subject: Ratification of the Company's 2019 business report, balance sheet, consolidated income statement, statement of changes in equity and statement of cash flows. Explanations:

1. Please see below the Appendix for the business report, balance sheet, consolidated income statement, statement of changes in equity and the

- 3 - statement of cash flows. 2. The aforesaid financial statements have been approved at the Company's 19th board meeting of the 18th term, and audited as well as certified by the CPA. They were submitted along with the business report to the Audit Committee for audit, which then has audited the same. Resolution: After all votes in attendance were cast (including votes cast via electronic means), there were 2,592,507,300 shares represented by shareholders voting in favor of the proposal, 278,689 shares represented by shareholders voting against the proposal, and 53,203,949 shares represented by shareholders abstaining from voting; 97.87% of the total shares represented by the shareholders in attendance were in favor and this proposal was passed without modification.

Proposal 2 Proposed by the board of directors Subject: Ratification of the Company's 2019 profit distribution plan. Explanations: 1. Please see below the 2019 Earnings Distribution Proposal. 2. This proposal was approved at the Company's 19th board meeting of the 18th term and submitted to the Audit Committee, which has audited the same. 3. Upon the approval of the Annual Shareholders' Meeting, it is proposed that the Chairman be authorized to otherwise determine the distribution record date and distribution date. In the event that the Company buys back shares, thereby affecting the number of outstanding shares and then causing the proposed profit distribution per share to change, it is proposed that the Chairman be authorized to adjust the same based on the number of actual shares outstanding on the ex-dividend date. 4. The distribution of the cash dividends shall be rounded down to the nearest New Taiwan Dollar. The aggregate of the remaining cash will be credited to Other Revenue by the Company.

- 4 - Resolution: After all votes in attendance were cast (including votes cast via electronic means), there were 2,598,164,369 shares represented by shareholders voting in favor of the proposal, 523,732 shares represented by shareholders voting against the proposal, and 47,301,837 shares represented by shareholders abstaining from voting; 98.08% of the total shares represented by the shareholders in attendance were in favor and this proposal was passed without modification. (The shareholders’ comments and discussions are omitted. All shareholders’ recommendations have been video-recorded for reference.)

- 5 - Walsin Lihwa Corporation Earnings Distribution Proposal for 2019 Unit: NTD

Summary Amount

Beginning of Period Retained Earnings 18,997,155,775

Add: Reversal of Special Reserve Appropriated by Law 932,729,021

Add: Retained Earnings Adjusted Due to Adoption of Equity Method in Investments 55,134,035

Less: Remeasurements of Defined Benefit Plans Recognized in Retained Earnings (54,879,461) Less: Cumulative Gains or Losses Directly Transferred to Retained Earnings by Disposal of

Investments in Equity Instruments Measured at Fair Value through Other Comprehensive Income (123,949,703) Adjusted Retained Earnings 19,806,189,667

Add: Net Income 3,149,678,860

Minus: Legal Reserve (314,967,886) 2,834,710,974

Distributable Earnings 22,640,900,641

Distribution

Cash Dividend to Shareholders (NT$0.5 per Share) (1,663,000,129)

End of Period Retained Earnings 20,977,900,512

Note 1: The Company's issued and outstanding common stock totaled 3,326,000,258 shares as of February 27, 2020. Note 2: According to the rules specified in the letter from the Ministry of Finance dated August 5, 1999 (Ref. No.: Tai-Cai-Shui-881933217), the year of this distribution of earnings is 2019.

Responsible Person: Chiao, Yu-Lon (Seal) Manager: Fred Pan (Seal) Accounting Chief: Wu, Chin-Sheng (Seal)

- 6 - Proposal 3 Proposed by the Board of Directors Subject: Review and approval of the amendments to the Articles of Incorporation of the Company. Explanation： 1. According to Article 177-1 of the Company Act, it is specified that the shareholders may exercise their voting rights by electronic means. 2. According to Articles 167-1, 167-2, 235-1 and 267 of the Company Act, it is specified that employees who are entitled to the treasury stock transferred, the employee warrants issued, subscription for new shares issued, and the restricted stock awards issued by the Company include the employees of parents or subsidiaries of the Company meeting certain specific requirements. 3. According to Article 14-5 of the Securities and Exchange Act, the final account statements of the Company shall be signed or sealed by the Chairman, a manager officer and the Accounting Officer before being sent to the Audit Committee and the Board of Directors. 4. Certain language in the article relating to the Director compensation has been amended in line with the corporate governance evaluation indicators. 5. In summary, Articles 5, 11, 21, 25-1, 26, 28 and 31 of the Articles of Incorporation of the Company are hereby amended, and the Comparison Table of the Amended Articles of the Articles of Incorporation is set out on below the Appendix. Resolution: After all votes in attendance were cast (including votes cast via electronic means), there were 2,598,377,031 shares represented by shareholders voting in favor of the proposal, 289,993 shares represented by shareholders voting against the proposal, and 47,322,914 shares represented by shareholders abstaining from voting; 98.09% of the total shares represented by the shareholders in attendance were in favor and this proposal was passed without modification.

- 7 - Proposal 4 Proposed by the Board of Directors Subject: Review and approval of the amendments to the Procedures for Financial Derivatives Transactions of the Company. Explanations: 1. It is proposed that certain provisions of the above Procedures be amended in response to the Company's operational changes, and to meet its operational and managerial needs. 2. Please see below the Appendix for the Comparison Table of the Amended Articles of the Procedures for Financial Derivatives Transactions of the Company. Resolution: After all votes in attendance were cast (including votes cast via electronic means), there were 2,598,367,377 shares represented by shareholders voting in favor of the proposal, 281,964 shares represented by shareholders voting against the proposal, and 47,332,597 shares represented by shareholders abstaining from voting; 98.09% of the total shares represented by the shareholders in attendance were in favor and this proposal was passed without modification.

Proposal 5 Proposed by the Board of Directors Subject: Review and approval of the amendments to the Rules and Procedures of Shareholders’ Meetings of the Company. Explanations: 1. It is proposed that certain provisions of Articles 2, 10 and 15 of the above Rules and Procedures be amended in accordance with the amendments to the Company Act, and to meet practical operational needs. 2. Please see below the Appendix for the Comparison Table of Amended Articles of the Rules and Procedures of Shareholders’ Meetings of the Company. Resolution: After all votes in attendance were cast (including votes cast via electronic means), there were 2,598,315,348 shares represented by shareholders voting in favor of the proposal, 288,100 shares

- 8 - represented by shareholders voting against the proposal, and 47,326,490 shares represented by shareholders abstaining from voting; 98.09% of the total shares represented by the shareholders in attendance were in favor and this proposal was passed without modification.

Proposal 6 Proposed by the Board of Directors Subject: Election of the Company's Board of Directors of the 19th term. Explanations: 1. It is conducted in accordance with Article 14 of the Company's Articles of Incorporation. 2. The Company's Board of Directors of the 18th term were elected at the Annual General Meeting of Shareholders dated May 26, 2017 and their terms have expired. It is proposed that the 2020 Annual General Shareholders' Meeting hold an election of the Company's Directors of 19th term in accordance with Article 14 of the Company's Articles of Incorporation, and the proposed number of Directors should be 11, including 4 Independent Directors. 3. The new Directors should be appointed for a term of three years commencing on the date of election (i.e., May 29, 2020) and ending on May 28, 2023. 4. Please refer below the Appendix for the List of Candidate for Directors and Independent Directors. Resolution: the Chairman announced the following newly elected Directors of the Company:

Shareholder No. (or the Vote-getting Name Remark Identification Card Number) shares 9230 Yu-Lon Chiao 3,203,695,580 Director 175 Patricia Chiao 2,922,510,414 Director 172 Yu-Cheng Chiao 2,919,234,560 Director 183 Yu-Heng Chiao 2,694,334,026 Director A10089**** Andrew Hsia 2,514,664,313 Director 245788 Wei-Shin Ma 2,449,781,987 Director

- 9 - Shareholder No. (or the Vote-getting Name Remark Identification Card Number) shares Chin-Xin Investment 16300 2,342,535,950 Director Co., Ltd. Independent 2,319,322,883 B10107**** Ming-Ling Hsueh Director Independent 2,314,081,720 D10071**** King-Ling Du Director Independent 2,313,752,222 A12282**** Shiang-Chung Chen Director Independent 2,151,488,515 A10374**** Fu-Hsiung Hu Director

Proposal 7 Proposed by the Board of Directors Subject: Release of the directors of the Company from non-compete restrictions set forth in Article 209 of the Company Act. Explanations: 1. It is conducted in accordance with Paragraph 1, Article 209 of the Company Act, which provides that “a director who does anything for himself or on behalf of another person that is within the scope of the company's business, shall explain to the shareholders meeting the essential contents of such an act and secure its approval.” 2. For the Company's newly-elected directors who serve as directors or managerial officers in companies operating the same/similar businesses as/to the Company, Please see below the Appendix. 3. It is proposed that the shareholders' meeting approve the release of the newly-elected directors from non-compete restrictions on engaging in any business within the Company's business scope under Paragraph 1, Article 209 of the Company Act, as well as approve the abstention from exercise of the disgorgement rights against the directors mentioned above as of the date of serving as directors or managerial officers of other companies engaging in competing business. Resolution: 7-1 Regarding to release Director Yu-Lon Chiao from non-compete restrictions, after all votes in attendance have been casted (including votes attended via electronical means and excluding 45,961,773 shares which may post a

- 10 - conflict of interests), 2,540,578,105 votes were in favor, 485,729 votes were against, 58,448,331 abstained; 97.60% of the total votes in attendance were in favor and this proposal was passed without modification. 7-2 Regarding to release Director Yu-Cheng Chiao from non-compete restrictions, after all votes in attendance have been casted (including votes attended via electronical means and excluding 914,382,999 shares which may post a conflict of interests), 1,671,951,945 votes were in favor, 486,732 votes were against, 58,652,262 abstained; 96.39% of the total votes in attendance were in favor and this proposal was passed without modification. 7-3 Regarding to release Director Yu-Heng Chiao from non-compete restrictions, after all votes in attendance have been casted (including votes attended via electronical means and excluding 914,382,999 shares which may post a conflict of interests), 1,671,929,946 votes were in favor, 482,730 votes were against, 58,678,263 abstained; 96.39% of the total votes in attendance were in favor and this proposal was passed without modification. 7-4 Regarding to release Director Wei-Shin Ma from non-compete restrictions, after all votes in attendance have been casted (including votes attended via electronical means and excluding 914,382,999 shares which may post a conflict of interests), 1,671,959,857 votes were in favor, 487,952 votes were against, 58,643,130 abstained; 96.40% of the total votes in attendance were in favor and this proposal was passed without modification. 7-5 Regarding to release Director Chin-Xin Investment Co., Ltd. from non- compete restrictions, after all votes in attendance have been casted (including votes attended via electronical means and excluding 210,011,000 shares which may post a conflict of interests), 2,034,755,311 votes were in favor, 323,153,621 votes were against, 77,554,006 abstained; 83.43% of the total votes in attendance were in favor and this proposal was passed without modification. 7-6 Regarding to release Independent Director Andrew Hsia from non-compete restrictions, after all votes in attendance have been casted (including votes attended via electronical means), 2,586,566,936 votes were in favor, 462,987 votes were against, 58,444,015 abstained; 97.65% of the total votes in attendance were in favor and this proposal was passed without modification.

- 11 - 7-7 Regarding to release Independent Director Ming-Ling Hsueh from non- compete restrictions, after all votes in attendance have been casted (including votes attended via electronical means), 2,586,558,957 votes were in favor, 472,976 votes were against, 58,442,005 abstained; 97.65% of the total votes in attendance were in favor and this proposal was passed without modification. 7-8 Regarding to release Independent Director King-Ling Du from non-compete restrictions, after all votes in attendance have been casted (including votes attended via electronical means), 2,586,364,936 votes were in favor, 450,987 votes were against, 58,658,015 abstained; 97.64% of the total votes in attendance were in favor and this proposal was passed without modification. 7-9 Regarding to release Independent Director Shiang-Chung Chen from non- compete restrictions, after all votes in attendance have been casted (including votes attended via electronical means), 2,586,539,992 votes were in favor, 491,999 votes were against, 58,441,947 abstained; 97.65% of the total votes in attendance were in favor and this proposal was passed without modification.

5. Ad-Hoc Motion: None

6. Adjournment of Meeting: the Chairman announced that the meeting was adjourned at 10:24 am on May 29th, 2020. (The video recording of this annual general meeting shall prevail in the event of any discrepancy between these meeting minutes and the video recording in any detail.)

- 12 - Walsin Lihwa Corporation 2019 Business Report

1. Preamble Regarding the overall global economy in 2019, due to the trade war between China and the United States and the massive supply of stainless steel products made from nickel pig iron, product prices deviated from global raw material prices, thereby affecting the profitability of the Company's manufacturing businesses and its invested businesses. Except that renewable energy related businesses, including Taiwan’s renewable energy industrial cables and the US-based solar energy business invested by the Company, Borrego Solar Systems Inc., have grown in profitability, the overall profitability in 2019 was underperformed by that in 2018. However, the Company actively adjusted its product mix in 2019 by selling its Nanjing copper bar business in the first half of 2019, expanding its sales of industrial cables in Taiwan, developing new steel grades and establishing a new rolling mill in Yantai to increase the number of stainless steel products for industrial applications, while proactively seeking opportunities to invest in upstream raw materials. In 2020, the global economy is expected to rebound from its trough as the trade disputes between China and the United States has temporarily eased off and the Federal Reserve is likely to cut interest rates, but the global economic recovery has slowed down due to the recent outbreak of the novel coronavirus (COVID-19). The Company's manufacturing businesses still have to face long-term operational challenges such as volatile raw material prices and stringent environmental and renewable energy regulations. On the one hand, the Company continues to invest in technology applications in order to gradually transform itself into a manufacturing service provider in line with the expansion of the market for industrial application products; on the other hand, the Company has grasped the opportunity to increase its strategic investment in upstream raw materials by investing in the construction of nickel pig iron plant and power plant in Indonesia at the beginning of this year, with a view to maintaining its continued growth momentum. 2. Explanation for Financial Result Unit: NT$ million Amount of 2019 2018 Increase (Decrease) Operating Revenue 134,804 190,915 (56,111) Gross Profit 9,391 15,935 (6,544) Operating Expenses 5,331 4,909 422

- 13 - Amount of 2019 2018 Increase (Decrease) Income from Operations 4,059 11,026 (6,967) Non-Operating Income and Expenses 681 5,645 (4,964)

Profit Before Tax 4,740 16,671 (11,931)

Net Income After Taxes 3,150 11,757 (8,607)

(1) Operating Revenue The Company's revenue dropped by NT$37.7 billion in 2019 year-on-year due to the sale of shareholding in Nanjing Walsin Metal Co., Ltd.; the revenue of the Real Estate Business for the residential and office projects decreased by NT$12.4 billion in 2019 year-on-year owing to recognition of only parking lot sales; and for the Stainless Steel Business, its sales reduced by 60,000 metric tons and therefore its revenue dropped by NT$6.4 billion year-on-year.

(2) Gross Profit In 2018, the gross profit has increased by NT$6.5 billion year-on-year, mainly because the Real Estate Business has recognized gross profits from the housing project on Lot D (Phase II) and two office buildings.

(3) Operating Expenses The rise in the 2019 operating expenses was mainly attributable to the opening and operation of the mall for the Real Estate Business and to the increased expenses arising from Borrego Solar Systems Inc. operational growth.

(4) Non-Operating Income and Expenses Non-operating income and expenses decreased by NT$5 billion in 2019 compared to 2018, mainly due to the reduction in the investment income affected by the slowdown in demand facing Walsin Technology Corporation and Winbond Electronics Corporation. The gain on the sale of the Nanjing Copper Bar Business and the lease of idle real estate was also offset by the provision of impairment loss on investments and the loss on hedging of raw materials for stainless steel products.

3. Operating Overview and Prospects of the Business Units

(1) Wire and Cable

- 14 - The Copper Wire BU adopts a steady strategy. The Company will continue to improve its product quality to remain its market share. The current markets facing and products manufactured by the Insulated Wire & Cable BU have generated stable income for the Company. The Company has been actively expanded its sales of products relating to renewable energy (such as solar energy and wind power) and port machines, while promoting the relevant cable products in global markets, in order to expand its market presence.

(2) Stainless Steel The Stainless Steel BU continues to face challenges brought about by changes in the industrial value chains by enhancing product quality through capital expenditure, while maintaining product profitability by developing new steel grades, expanding product sizes, and increasing the proportion of high-value products. In addition, in order to increase the stability of raw materials supply and make strategic investments in upstream raw materials, the Company has invested in the construction of a nickel pig iron plant and a supporting power plant in Indonesia.

(3) Real Estate The Walsin shopping mall has been successfully opened in the middle of 2019 and is now growing steadily in terms of volume of customers and business. The mall was affected by COVID-19 earlier this year and the short closure of the mall will affect its first quarter business performance. However, it is expected that after the epidemic is stabilized, the operation of the shopping mall will enable its stable growth in business results, increase in foot traffic and improvement in the brand level. The sale of Phase III of Lot D of Walsin Centro located in Nanjing will be completed after receipt of the sales permit issued by the Nanjing City Government. Lot A and Lot B of Walsin Centro located in Nanjing adopt the phased development sales model. Building No. 6 is expected to be offered for leasing in the third quarter of 2020. Building No. 1 is now under construction and is expected to be completed by the end of 2021.

Responsible person: Chiao, Yu-Lon (Seal) Manager: Fred Pan (Seal) Chief Accountant: Wu, Chin-Sheng (Seal)

- 15 - WALSIN LIHWA CORPORATION AND SUBSIDIARIES

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

2019 2018 ASSETS Amount % Amount %

CURRENT ASSETS Cash and cash equivalents (Notes 4 and 6) $ 11,753,006 9 $ 9,406,154 7 Financial assets at fair value through profit or loss - current (Notes 4 and 7) 69,795 - 95,426 - Financial assets at amortized cost - current (Notes 4 and 9) 1,470,571 1 1,489,831 1 Derivative financial assets for hedging - current (Notes 4 and 8) - - 15,630 - Contract assets - current (Notes 4 and 13) 4,014,672 3 2,589,864 2 Notes receivable (Notes 4 and 11) 3,576,333 3 3,844,819 3 Trade receivables (Notes 4 and 11) 7,637,759 6 11,729,199 9 Lease receivables (Notes 4 and 11) - - 52,489 - Finance lease receivables (Notes 4 and 12) 54,278 - - - Other receivables (Note 29) 8,076,664 6 1,212,252 1 Prepayments for leases (Note 20) - - 59,811 - Inventories (Notes 4 and 13) 22,019,088 16 26,048,519 20 Other financial assets (Note 6) 317,733 - 114,255 - Other current assets 1,799,895 1 2,068,664 1

Total current assets 60,789,794 45 58,726,913 44

NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 14) 5,323,365 4 3,991,218 3 Investments accounted for using equity method (Notes 4 and 16) 29,012,467 21 30,555,851 23 Property, plant and equipment (Notes 4 and 17) 27,845,109 20 25,083,436 19 Right-of-use assets (Notes 4 and 18) 1,363,823 1 - - Investment properties (Notes 4 and 19) 10,032,989 7 10,241,647 8 Other intangible assets 168,134 - 164,451 - Deferred tax assets - non-current (Notes 4 and 26) 2,048,176 1 1,657,511 1 Refundable deposits 183,291 - 187,053 - Long-term lease receivables (Notes 4 and 13) - - 830,991 1 Long-term finance lease receivables (Notes 4 and 12) 776,713 1 - - Long-term prepayments for leases (Note 20) - - 1,119,004 1 Other non-current assets 522,541 - 96,035 -

Total non-current assets 77,276,608 55 73,927,197 56

TOTAL $ 138,066,402 100 $ 132,654,110 100

LIABILITIES AND EQUITY

CURRENT LIABILITIES Short-term borrowings (Note 21) $ 12,457,481 9 $ 10,024,097 8 Financial liabilities at fair value through profit or loss - current (Notes 4 and 7) 6,026 - - - Derivative financial liabilities for hedging - current (Notes 4 and 8) 14,346 - - - Contract liabilities - current (Note 4) 518 - 19,899 - Notes payable 342,409 - 409,879 - Trade payables 6,967,817 5 8,643,816 7 Current tax liabilities (Notes 4 and 26) 4,587,562 3 4,389,952 3 Other payables 4,901,323 4 3,513,168 3 Lease liabilities - current (Notes 4 and 18) 76,467 - - - Current portion of long-term borrowings (Note 21) 6,564,196 5 4,564,196 3 Other current liabilities (Note 29) 4,825,408 3 581,963 -

Total current liabilities 40,743,553 29 32,146,970 24

NON-CURRENT LIABILITIES Long-term borrowings (Note 21) 16,929,215 12 19,993,411 15 Deferred tax liabilities - non-current (Notes 4 and 26) 179,314 - 182,494 - Lease liabilities - non-current (Notes 4 and 18) 225,505 - - - Net defined benefit liabilities (Notes 4 and 22) 536,614 - 645,403 1 Other non-current liabilities (Note 29) 886,087 1 421,489 -

Total non-current liabilities 18,756,735 13 21,242,797 16

Total liabilities 59,500,288 42 53,389,767 40

EQUITY ATTRIBUTABLE TO OWNERS OF WLC (Note 23) Share capital 33,260,002 24 33,260,002 25 Capital surplus 16,055,238 12 15,966,420 12 Retained earnings Legal reserve 5,113,232 4 3,937,554 3 Special reserve 4,043,138 3 2,712,250 2 Unappropriated earnings 22,023,141 16 25,494,923 19 Total retained earnings 31,179,511 23 32,144,727 24 Other equity Exchange differences on translating foreign operations (5,546,359) (4) (3,567,540) (3) Unrealized loss on financial assets at fair value through other comprehensive income 2,435,949 2 (474,446) - Cash flow hedges - - (1,151) - Total other equity (3,110,410) (2) (4,043,137) (3)

Total equity attributable to owners of WLC 77,384,341 57 77,328,012 58

NON-CONTROLLING INTERESTS 1,181,773 1 1,936,331 2

Total equity 78,566,114 58 79,264,343 60

TOTAL $ 138,066,402 100 $ 132,654,110 100

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

(With Deloitte & Touche auditors’ report dated February 27, 2020)

- 16 - WALSIN LIHWA CORPORATION AND SUBSIDIARIES

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

2019 2018 Amount % Amount %

OPERATING REVENUE (Notes 4 and 24) $ 134,804,405 100 $ 190,915,137 100

OPERATING COSTS (Notes 4 and 13) (125,413,839) (93) (174,979,772) (92)

GROSS PROFIT 9,390,566 7 15,935,365 8

OPERATING EXPENSES Selling and marketing expenses 2,076,993 2 2,144,126 1 General and administrative expenses 3,111,371 2 2,634,343 1 Research and development expenses 142,728 - 130,687 -

Total operating expenses 5,331,092 4 4,909,156 2

PROFIT FROM OPERATIONS 4,059,474 3 11,026,209 6

NON-OPERATING INCOME AND EXPENSES Interest income 268,338 - 355,283 - Dividend income 136,772 - 177,925 - Other income 195,467 - 367,344 - (Gain) loss on disposal of property, plant and equipment 854,514 1 (11,616) - Gain on disposal of investment property (Note 32) 246,877 - - - Loss (gain) on valuation of financial assets and liabilities (106,368) - 85,216 - Impairment loss (Notes 4 and 25) (1,680,575) (1) (78,547) - Other expenses (338,237) - (239,432) - Foreign exchange gain (loss), net 112,757 - 271,081 - Interest expense (559,596) - (684,163) - Gain on disposal of investments (Note 25) 822,882 - 355,668 - Share of gain of associates under equity method 727,962 - 5,046,006 3

Total non-operating income and expenses 680,793 - 5,644,765 3

PROFIT BEFORE INCOME TAX FROM CONTINUING OPERATIONS 4,740,267 3 16,670,974 9

INCOME TAX EXPENSE (Notes 4 and 26) (956,943) (1) (4,711,687) (3)

NET INCOME FOR THE YEAR 3,783,324 2 11,959,287 6

(Continued)

- 17 - WALSIN LIHWA CORPORATION AND SUBSIDIARIES

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

2019 2018 Amount % Amount %

OTHER COMPREHENSIVE LOSS (INCOME) Items that may not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans (22,278) - 4,052 - Unrealized gain (loss) on financial assets at fair value through other comprehensive income 1,185,769 1 (1,243,074) - Share of the other comprehensive loss of associates accounted for using the equity method 1,747,483 1 (1,286,630) (1) 2,910,974 2 (2,525,652) (1) Items that will be reclassified subsequently to profit or loss: Exchange loss on translation of foreign operations (1,766,406) (1) (572,415) - Cash flow hedges gain 1,151 - 6,378 - Share of other comprehensive income of associates under equity method (230,099) - (51,083) - (1,995,354) (1) (617,120) -

Other comprehensive (loss) income for the year 915,620 1 (3,142,772) (1)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR $ 4,698,944 3 $ 8,816,515 5

NET INCOME ATTRIBUTABLE TO: Owners of WLC $ 3,149,679 2 $ 11,756,781 6 Non-controlling interests 633,645 - 202,506 -

$ 3,783,324 2 $ 11,959,287 6

COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of WLC $ 4,082,661 3 $ 8,612,785 5 Non-controlling interests 616,283 - 203,730 -

$ 4,698,944 3 $ 8,816,515 5

EARNINGS PER SHARE (Note 27) Basic $ 0.95 $ 3.53 Diluted $ 0.95 $ 3.53

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

(With Deloitte & Touche auditors’ report dated February 27, 2020) (Concluded)

- 18 - WALSIN LIHWA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (In Thousands of New Taiwan Dollars)

Equity Attributable to Owners of WLC Other Equity Unrealized Gain (Loss) on Financial Exchange Unrealized Gain Assets at Fair Value Retained Earnings Differences on (Loss) on through Other Unappropriated Translating Foreign Available-for-sale Comprehensive Non-controlling Share Capital Capital Surplus Legal Reserve Special Reserve Earnings Operations Financial Assets Income Cash Flow Hedges Treasury Shares Total Interests Total Equity

BALANCE AT JANUARY 1, 2018 $ 33,660,002 $ 15,854,392 $ 3,281,556 $ 2,712,250 $ 13,240,574 $ (2,944,758 ) $ 5,042,894 $ - $ (7,529 ) $ (315,918 ) $ 70,523,463 $ 1,756,793 $ 72,280,256

Effect of retrospective application of IFRS 9 - - - - 4,651,666 - (5,042,894 ) 1,875,068 - - 1,483,840 26 1,483,866

Effect of retrospective application of IFRS 15 - - - - 5,978 - - - - - 5,978 - 5,978

BALANCE AT JANUARY 1, 2018 AS RESTATED 33,660,002 15,854,392 3,281,556 2,712,250 17,898,218 (2,944,758 ) - 1,875,068 (7,529 ) (315,918 ) 72,013,281 1,756,819 73,770,100

Appropriation of 2017 earnings (Note 23) Legal reserve - - 655,998 - (655,998 ) ------Cash dividends distributed by WLC - - - - (3,326,000 ) - - - - - (3,326,000 ) - (3,326,000 )

Excess of the consideration received over the carrying amount of the subsidiaries' net assets disposed of - 615 ------615 - 615

Change in capital surplus from investments in associates under equity method - 27,333 - - 97,100 - - (97,100 ) - - 27,333 - 27,333

Cumulative unrealized loss of equity instruments transferred to retained earnings due to disposal (Note 14) - - - - (252,951 ) - - 252,951 - - - - -

Net profit for the year ended December 31, 2018 - - - - 11,756,781 - - - - - 11,756,781 202,506 11,959,287

Other comprehensive income (loss) for the year ended December 31, 2018, net of income tax - - - - (22,227 ) (622,782 ) - (2,505,365 ) 6,378 - (3,143,996 ) 1,224 (3,142,772 )

Total comprehensive income (loss) for the year ended December 31, 2018 - - - - 11,734,554 (622,782 ) - (2,505,365 ) 6,378 - 8,612,785 203,730 8,816,515

Cancelation of treasury shares (400,000 ) 84,082 ------315,918 - - -

Others - (2 ) ------(2 ) - (2 )

Changes in non-controlling interests ------(24,218 ) (24,218 )

BALANCE, DECEMBER 31, 2018 33,260,002 15,966,420 3,937,554 2,712,250 25,494,923 (3,567,540 ) - (474,446 ) (1,151 ) - 77,328,012 1,936,331 79,264,343

Appropriation of 2018 earnings (Note 23) Legal reserve - - 1,175,678 - (1,175,678 ) ------Special reserve - - - 1,330,888 (1,330,888 ) ------Cash dividends distributed by WLC - - - - (3,991,200 ) - - - - - (3,991,200 ) - (3,991,200 )

Excess of the consideration received over the carrying amount of the subsidiaries' net assets disposed of - (615 ) - - (123,950 ) - - - - - (124,565 ) - (124,565 )

Change in capital surplus and retained earnings from investments in associates under equity method - 89,443 - - 55,134 - - (55,134 ) - - 89,443 - 89,443

Net profit for the year ended December 31, 2019 - - - - 3,149,679 - - - - - 3,149,679 633,645 3,783,324

Other comprehensive income (loss) for the year ended December 31, 2019, net of income tax - - - - (54,879 ) (1,978,819 ) - 2,965,529 1,151 - 932,982 (17,362 ) 915,620

Total comprehensive income (loss) for the year ended December 31, 2019 - - - - 3,094,800 (1,978,819 ) - 2,965,529 1,151 - 4,082,661 616,283 4,698,944

Others - (10 ) ------(10 ) - (10 )

Changes in non-controlling interests ------(1,370,841 ) (1,370,841 )

BALANCE, DECEMBER 31, 2019 $ 33,260,002 $ 16,055,238 $ 5,113,232 $ 4,043,138 $ 22,023,141 $ (5,546,359 ) $ - $ 2,435,949 $ - $ - $ 77,384,341 $ 1,181,773 $ 78,566,114

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

(With Deloitte & Touche auditors’ report dated February 27, 2020)

- 19 - WALSIN LIHWA CORPORATION AND SUBSIDIARIES

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

2019 2018

CASH FLOWS FROM OPERATING ACTIVITIES Profit before income tax $ 4,740,267 $ 16,670,974 Adjustments for: Depreciation expenses 2,163,455 1,734,995 Amortization expenses 11,223 32,973 Expected credit (reversed) loss recognized on trade receivables (15,124) 9,907 Net loss (gain) on fair value change of financial assets and liabilities designated as at fair value through profit or loss 106,368 (85,216) Interest expense 559,596 684,163 Interest income (268,338) (355,283) Dividend income (136,772) (177,925) Compensation cost of employees share options 14,145 5,397 Share of gain of associates under equity method (727,962) (5,046,006) Gain (loss) on disposal of property, plant and equipment (854,514) 11,616 Gain on the disposal of investmnet property (246,877) - Loss on the disposal of intangible assets - 185 Gain on disposal of other assets (17) - Gain on disposal of investments (822,882) (355,668) Impairment loss recognized on property, plant and equipment 1,680,575 78,547 Loss (gain) on foreign currency exchange 23,887 (275) Changes in operating assets and liabilities (Increase) decrease in contract assets (1,424,808) 6,823 (Increase) decrease in notes receivable (575,022) 1,867,385 (Decrease) increase in trade receivables 3,452,476 (2,648,343) Increase in other receivables (229,770) (134,272) Decrease in inventories 1,820,757 3,651,933 (Decrease) increase in other current assets 130,079 (271,739) (Increase) decrease in other financial assets (203,478) 1,287,611 Decrease in other operating assets 23,252 33,265 (Decrease) increase in financial liabilities held for trading (1,109,374) 153,306 Decrease in notes payable (67,470) (36,776) Decrease in trade payables (1,540,007) (599,826) Increase in contract liabilities 518 - (Increase) decrease in other payables 855,977 (321,214) Decrease in advance real estate receipts - (10,143,723) Decrease in net defined benefit liabilities (108,789) (222,908) Decrease in other current liabilities (234,597) (440,148) Increase in other operating liabilities 466,206 65,675 Cash generated from operations 7,482,980 5,455,433 Interest paid (561,991) (612,840) Interest received 193,009 295,805 Dividends received from associates 2,569,560 1,514,347 Income tax paid (1,056,367) (3,633,464)

Net cash generated from operating activities 8,627,191 3,019,281 (Continued)

- 20 - WALSIN LIHWA CORPORATION AND SUBSIDIARIES

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

2019 2018

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at fair value through other comprehensive income (169,868) (750) Proceeds from the disposal of financial assets at fair value through other comprehensive income - 73,158 Share buybacks due to capital reduction from financial assets at fair value through other comprehensive income - 915 Acquisition of financial assets at amortized cost (6,167) - Disposal of financial assets at amortized cost - 3,072 Disposal of financial assets for hedging 1,151 - Purchase of associates under equity method (280,064) (592,586) Net cash flow from acquisition of subsidiaries 3,237,032 - Purchase of property, plant and equipment (5,280,057) (5,795,665) Proceeds from disposal of property, plant and equipment 182,590 10,593 Increase in refundable deposits (1,212) (1,435) Purchase of intangible assets (3,948) (1,926) Acquisition of investment property (1,211) - Proceeds from disposal of investment properties 250,420 - Increase in other receivables (273,335) (365,101)

Net cash used in investing activities (2,344,669) (6,669,725)

CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings 2,564,195 3,217,299 Increase in long-term borrowings 10,500,000 6,000,000 Decrease in long-term borrowings (11,564,196) (3,564,196) Repayment of the principal portion of lease liabilities (74,619) - Dividends paid to owners of WLC (3,991,018) (3,325,743) Changes in non-controlling interests (299,831) (29,522) Other financing activities (10) (2)

Net cash (used in) generated from financing activities (2,865,479) 2,297,836

EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES (1,070,191) (193,929)

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 2,346,852 (1,546,537)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 9,406,154 10,952,691

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR $ 11,753,006 $ 9,406,154

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

(With Deloitte & Touche auditors’ report dated February 27, 2020) (Concluded)

- 21 - WALSIN LIHWA CORPORATION

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

2019 2018 ASSETS Amount % Amount %

CURRENT ASSETS Cash and cash equivalents (Notes 4 and 6) $ 1,284,354 1 $ 949,956 1 Financial assets at fair value through profit or loss - current (Notes 4 and 7) 52,589 - 142,111 - Contract assets - current (Notes 4 and 8) 331,195 - 44,338 - Notes receivable from unrelated parties (Notes 4, 9 and 27) 52,753 - 56,624 - Trade receivables from unrelated parties (Notes 4 and 9) 1,590,771 1 2,696,765 2 Trade receivables from related parties (Notes 4, 9 and 27) 1,014,422 1 361,083 - Other receivables (Note 27) 2,555,588 2 536,860 - Inventories (Notes 4 and 10) 9,359,888 8 11,285,237 10 Other current assets 373,906 - 736,932 1

Total current assets 16,615,466 13 16,809,906 14

NON-CURRENT ASSETS Financial assets at fair value through other comprehensive income - non-current (Notes 4 and 11) 5,047,457 4 3,305,238 3 Investments accounted for using equity method (Notes 4 and 12) 71,708,531 60 73,754,195 62 Property, plant and equipment (Notes 4 and 13) 17,621,858 15 16,432,206 14 Right-of-use assets (Notes 4 and 14) 44,086 - - - Investment properties (Notes 4 and 15) 8,417,355 7 8,551,796 7 Deferred tax assets - non-current (Notes 4 and 22) 863,000 1 394,000 - Refundable deposits 59,779 - 58,292 - Other non-current assets 1 - 1 -

Total non-current assets 103,762,067 87 102,495,728 86

TOTAL $ 120,377,533 100 $ 119,305,634 100

LIABILITIES AND EQUITY

CURRENT LIABILITIES Short-term borrowings (Note 16) $ 9,350,000 8 $ 8,095,612 7 Financial liabilities at fair value through profit or loss - current (Notes 4 and 8) - - 4,079 - Derivative financial liabilities hedging - current (Notes 4 and 17) 55,402 - 3,244 - Trade payables to unrelated parties 2,499,976 2 3,845,788 3 Current tax liabilities (Notes 4 and 22) 278,669 - 478,299 - Other payables to unrelated parties 2,056,203 2 2,466,197 2 Other payables to related parties (Note 27) 4,809,068 4 2,000,657 2 Lease liabilities - current (Notes 4 and 14) 19,218 - - - Current portion of long-term borrowings (Note 16) 6,500,000 6 4,500,000 4 Other current liabilities 131,813 - 167,762 -

Total current liabilities 25,700,349 22 21,561,638 18

NON-CURRENT LIABILITIES Long-term borrowings (Note 15) 16,500,000 14 19,500,000 16 Deferred tax liabilities - non-current (Notes 4 and 22) 131,132 - 131,132 - Lease liabilities - non-current (Notes 4 and 14) 25,265 - - - Net defined benefit liabilities (Notes 4 and 18) 462,196 - 584,078 1 Other non-current liabilities (Note 24) 174,250 - 200,774 -

Total non-current liabilities 17,292,843 14 20,415,984 17

Total liabilities 42,993,192 36 41,977,622 35

EQUITY (Note 19) Share capital 33,260,002 28 33,260,002 28 Capital surplus 16,055,238 13 15,966,420 13 Retained earnings Legal reserve 5,113,232 4 3,937,554 3 Special reserve 4,043,138 3 2,712,250 2 Unappropriated earnings 22,023,141 19 25,494,923 22 Total retained earnings 31,179,511 26 32,144,727 27 Other equity Exchange differences on translating foreign operations (5,546,359) (5) (3,567,540) (3) Unrealized gain (loss) on financial assets at fair value through other comprehensive income 2,435,949 2 (474,446) - Cash flow hedges - - (1,151) - Total other equity (3,110,410) (3) (4,043,137) (3)

Total equity 77,384,341 64 77,328,012 65

TOTAL $ 120,377,533 100 $ 119,305,634 100

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

(With Deloitte & Touche auditors’ report dated February 27, 2020)

- 22 - WALSIN LIHWA CORPORATION

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

2019 2018 Amount % Amount %

OPERATING REVENUE (Notes 4 and 20) $ 71,596,648 100 $ 85,099,970 100

OPERATING COSTS (Note 10) (67,448,244) (94) (81,254,264) (96)

REALIZED (UNREALIZED) GAIN ON THE TRANSACTIONS WITH SUBSIDIARIES AND ASSOCIATES 7,447 - (5,456) -

GROSS PROFIT 4,155,851 6 3,840,250 4

OPERATING EXPENSES Selling and marketing expenses 764,642 1 808,264 1 General and administrative expenses 804,823 1 777,885 1 Research and development expenses 141,208 - 131,591 -

Total operating expenses 1,710,673 2 1,717,740 2

PROFIT FROM OPERATIONS 2,445,178 4 2,122,510 2

NON-OPERATING INCOME AND EXPENSES Interest income 14,756 - 6,135 - Dividend income 136,125 - 177,873 - Other income 42,830 - 121,897 - Gain on disposal of property, plant and equipment 902 - 4,212 - Gain on disposal of investment properties (Note 27) 246,877 1 - - Gain (loss) on disposal of investments (Note 21) (1,289,999) (2) 488,267 1 Foreign exchange gain, net 61,396 - 251,457 - (Loss) gain on valuation of financial assets and liabilities at fair value through profit or loss (85,444) - 206,812 - Impairment loss (Note 21) (1,678,822) (2) (4,636) - Other expenses (60,700) - (60,040) - Interest expense (535,938) (1) (479,707) - Share of profit of subsidiaries and associates under equity method 3,792,534 5 9,411,252 11

Total non-operating income and expenses 644,517 1 10,123,522 12

PROFIT BEFORE INCOME TAX FROM CONTINUING OPERATIONS 3,089,695 5 12,246,032 14

INCOME TAX (EXPENSE) BENEFIT (Notes 4 and 22) 59,984 - (489,251) -

(Continued)

- 23 - WALSIN LIHWA CORPORATION

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

2019 2018 Amount % Amount %

NET PROFIT FOR THE YEAR 3,149,679 5 11,756,781 14

OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans (Notes 4 and 18) (22,786) - (372) - Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income 1,572,352 2 (719,216) (1) Share of the other comprehensive income (loss) of associates accounted for using the equity method 1,361,083 2 (1,808,004) (2) 2,910,649 4 (2,527,592) (3) Items that may be reclassified subsequently to profit or loss: Exchange differences translating the financial statements of foreign operations (1,748,719) (2) (571,733) (1) Gain on cash flow hedges 1,151 - 6,378 - Share of other comprehensive loss of associates accounted for using the equity method (230,099) (1) (51,049) - (1,977,667) (3) (616,404) (1)

Other comprehensive income (loss) for the year, net of income tax 932,982 1 (3,143,996) (4)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR $ 4,082,661 6 $ 8,612,785 10

EARNINGS PER SHARE (Note 23) Basic $ 0.95 $ 3.53 Diluted $ 0.95 $ 3.53

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

(With Deloitte & Touche auditors’ report dated February 27, 2020) (Concluded)

- 24 - WALSIN LIHWA CORPORATION

STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2019 AND 2018 (In Thousands of New Taiwan Dollars)

Other Equity Unrealized Exchange Valuation Gain Differences on (Loss) on Financial Translating the Unrealized Gain Assets at Fair Value Retained Earnings Financial (Loss) on through Other Unappropriated Statements of Available-for-sale Comprehensive Share Capital Capital Surplus Legal Reserve Special Reserve Earnings Foreign Operations Financial Assets Income Cash Flow Hedges Treasury Shares Total Equity

BALANCE AT JANUARY 1, 2018 $ 33,660,002 $ 15,854,392 $ 3,281,556 $ 2,712,250 $ 13,240,574 $ (2,944,758 ) $ 5,042,894 $ - $ (7,529 ) $ (315,918 ) $ 70,523,463

Effect of retrospective application of IFRS 9 - - - - 4,651,666 - (5,042,894 ) 1,875,068 - - 1,483,840

Effect of retrospective application of IFRS 15 - - - - 5,978 - - - - - 5,978

BALANCE AT JANUARY 1, 2018, AS RESTATED 33,660,002 15,854,392 3,281,556 2,712,250 17,898,218 (2,944,758 ) - 1,875,068 (7,529 ) (315,918 ) 72,013,281

Appropriation of 2017 earnings (Note 19) Legal reserve - - 655,998 - (655,998 ) ------Cash dividends - - - - (3,326,000 ) - - - - - (3,326,000 )

Excess of the consideration received over the carrying amount of the subsidiaries' disposed of net assets - 615 ------615

Change in capital surplus from investments in associates accounted for using the equity method - 27,333 - - 97,100 - - (97,100 ) - - 27,333

Cumulative unrealized loss of equity instruments transferred to retained earnings due to disposal (Note 11) - - - - (252,951 ) - - 252,951 - - -

Net profit for the year ended December 31, 2018 - - - - 11,756,781 - - - - - 11,756,781

Other comprehensive income (loss) for the year ended December 31, 2018, net of income tax - - - - (22,227 ) (622,782 ) - (2,505,365 ) 6,378 - (3,143,996 )

Total comprehensive income (loss) for the year ended December 31, 2018 - - - - 11,734,554 (622,782 ) - (2,505,365 ) 6,378 - 8,612,785

Cancelation of treasury shares (400,000 ) 84,082 ------315,918 -

Others - (2 ) ------(2 )

BALANCE AT DECEMBER 31, 2018 33,260,002 15,966,420 3,937,554 2,712,250 25,494,923 (3,567,540 ) - (474,446 ) (1,151 ) - 77,328,012

Appropriation of 2018 earnings (Note 19) Legal reserve - - 1,175,678 - (1,175,678 ) ------Special reserve - - - 1,330,888 (1,330,888 ) ------Cash dividends - - - - (3,991,200 ) - - - - - (3,991,200 )

Excess of the consideration received over the carrying amount of the subsidiaries' disposed of net assets - (615 ) - - (123,950 ) - - - - - (124,565 )

Change in capital surplus and retained earnings from investments in accounted for using the associates under equity method - 89,443 - - 55,134 - - (55,134 ) - - 89,443

Net profit for the year ended December 31, 2019 - - - - 3,149,679 - - - - - 3,149,679

Other comprehensive income (loss) for the year ended December 31, 2019, net of income tax - - - - (54,879 ) (1,978,819 ) - 2,965,529 1,151 - 932,982

Total comprehensive income (loss) for the year ended December 31, 2019 - - - - 3,094,800 (1,978,819 ) - 2,965,529 1,151 - 4,082,661

Others - (10 ) ------(10 )

BALANCE AT DECEMBER 31, 2019 $ 33,260,002 $ 16,055,238 $ 5,113,232 $ 4,043,138 $ 22,023,141 $ (5,546,359 ) $ - $ 2,435,949 $ - $ - $ 77,384,341

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

(With Deloitte & Touche auditors’ report dated February 27, 2020)

- 25 - WALSIN LIHWA CORPORATION

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

2019 2018

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax $ 3,089,695 $ 12,246,032 Adjustments for: Depreciation expenses 1,205,774 1,072,926 Amortization expenses - 5,000 Expected credit loss reversed on trade receivables (900) - Net loss (gain) on fair value change of financial assets and liabilities designated as at fair value through profit or loss 85,444 (206,812) Interest expense 535,938 479,707 Interest income (14,756) (6,135) Dividend income (136,125) (177,873) Share of profit gain of subsidiaries and associates under equity method (3,792,534) (9,411,252) Gain on disposal of property, plant and equipment (902) (4,212) Gain on disposal of investment properties (246,877) - (Loss) gain on disposal of investments 1,289,999 (488,267) Impairment loss recognized on non-financial assets 1,678,822 4,636 (Realized) unrealized gain on the transaction with associates (7,447) 5,456 Net loss (gain) on foreign currency exchange 52,238 (2,457) Changes in operating assets and liabilities (Increase) decrease in financial assets mandatorily classified as at fair value through profit or loss (1,077,055) 192,333 Increase in contract assets (286,857) (34,789) Decrease (increase) in notes receivable 31,695 (29,271) Decrease in trade receivables 453,555 8,790 (Increase) decrease in other receivables (20,589) 10,060 Decrease (increase) in inventories 1,925,349 (2,120,589) Decrease (increase) in other current assets 361,958 (337,662) Increase in other operating assets - (5,000) Decrease in trade payables (1,345,812) (300,278) (Decrease) increase in other payables (287,145) 594,110 Decrease in net defined benefit liabilities (144,668) (221,327) Decrease in other current liabilities (28,502) (13,321) (Decrease) increase in other operating liabilities (26,524) 24,581 Cash generated from operations 3,293,774 1,284,386 Interest paid (542,489) (478,391) Interest received 14,799 7,136 Dividends received 2,701,498 1,570,303 Income tax paid (608,646) (436,268)

Net cash generated from operating activities 4,858,936 1,947,166

CASH FLOWS FROM INVESTING ACTIVITIES (Continued)

- 26 - WALSIN LIHWA CORPORATION

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

2019 2018

Purchase of financial assets at fair value through other comprehensive income (169,868) (750) Proceeds from the disposal of financial assets at fair value through other comprehensive income - 73,158 Share buybacks due to capital reduction from financial assets at fair value through other comprehensive income - 915 Proceeds from sale of derivative financial assets for hedging 1,151 - Acquisition of associates accounted for using the equity method (835,688) (3,135,019) Payments for of property, plant and equipment (2,397,498) (3,031,545) Proceeds from disposal of property, plant and equipment 1,588 8,796 (Increase) decrease in refundable deposits (1,487) 472 Purchase of investment properties (1,211) - Proceeds from the disposal of investment properties 250,420 - Other investing activities (424,258) (504,706)

Net cash used in investing activities (3,576,851) (6,588,679)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings 1,254,304 4,010,239 Proceeds from long-term borrowings 10,500,000 6,000,000 Decrease in long-term borrowings (11,500,000) (3,500,000) Increase in other payables to related parties 2,807,134 214,572 Repayment of the principal protion of lease (18,097) - Cash dividends paid (3,991,018) (3,325,743) Other financing activities (10) (2)

Net cash (used in) generated from financing activities (947,687) 3,399,066

NET INCREASE (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS 334,398 (1,242,447)

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 949,956 2,192,403

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR $ 1,284,354 $ 949,956

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

(With Deloitte & Touche auditors’ report dated February 27, 2020) (Concluded)

- 27 - INDEPENDENT AUDITORS' REPORT

The Board of Directors and Shareholders Walsin Lihwa Corporation

Opinion

We have audited the accompanying consolidated financial statements of Walsin Lihwa Corporation and its subsidiaries (the “Group”), which comprise the consolidated balance sheets as of December 31, 2019 and 2018, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of other auditors (as set out in the Other Matter section of our report), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2019 and 2018, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants, Rule No. 1090360805 issued by the Financial Supervisory Commission of the Republic of China on February 25, 2020 and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

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

Sales Revenue Recognition

The Group’s business unit’s main products of 2019 include stainless steel bars and stainless steel cold-and-hot rolled coils. Aside from Taiwan, there are many customers in China, America, Southeast Asia and Europe and the sales terms vary for different types of customers. Thus, we consider the reality of export sales revenue of stainless steel business unit as key audit matter. Refer to Notes 4 and 24 to the consolidated financial statements for related accounting policies and disclosure information of revenue recognition.

- 28 - We performed the following audit procedures in respect of the above key audit matter:

1. We verified and tested the internal control process of the export sales of stainless steel business unit.

2. We sampled and inspected the transactions of export sales revenue of stainless steel business unit to confirm its existence.

Inventory Valuation

As of December 31, 2019, the manufacturing and trading inventory of the Group amounted to NT14,991,547 thousand, which constituted 10.86% of the Group’s consolidated total assets, as of December 31, 2019. Refer to Notes 4, 5 and 13 for related accounting policies of inventory and inventory valuation.

The inventory of the Group is stated at the lower of cost or net realizable value. The valuation of the net realizable value required significant judgment and estimation. In addition, the market price of copper and nickel fluctuated frequently, which significantly affects the valuation of wire, cable and specialty steel inventory. As a result, inventory valuation is regarded as a key audit matter.

Our audit procedures in response to inventory valuation consist of obtaining inventory valuation sheets prepared by management, selecting samples of estimated selling prices and tracing them to recent sales records to assess the rationale of the net realizable value determined by management. Moreover, by attending the year-end inventory count, we assess the condition of the inventory to verify the completeness of obsolete goods.

Other Matter

The financial statements of certain subsidiaries included in the consolidated financial statements as of and for the years ended December 31, 2019 and 2018 were audited by other auditors. Our opinion, insofar as it relates to such subsidiaries, is based solely on the reports of other auditors. The total assets of such subsidiaries amounted to NT$10,076,558 thousand and NT$7,959,485 thousand, which constituted 7.30% and 6.00% of the Group’s consolidated total assets, as of December 31, 2019 and 2018, respectively, and the total net operating revenue of such subsidiaries amounted to NT$15,531,341 thousand and NT$11,999,669 thousand, which constituted 11.52% and 6.29% of the Group’s consolidated total net operating revenue, for the years ended December 31, 2019 and 2018, respectively.

The financial statements of certain equity-method investees included in the financial statements as of and for the year ended December 31, 2019 was audited by other auditors. The investment in such investees amounted to NT$0 thousand, which constituted 0% of the Group’s consolidated total assets as of December 31, 2019 and the investment loss amounted to NT$1,004,729 thousand, which constituted (21.20)% of the Group consolidated profit before income tax for the year ended December 31, 2019.

We have also audited the parent company only financial statements of Walsin Lihwa Corporation as of and for the years ended December 31, 2019 and 2018 on which we have issued an unmodified opinion.

Responsibilities of Management and Those Charged with Governance for 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 Securities Issuers and International Financial Reporting Standards (IFRS), International Accounting

- 29 - Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance (including the Audit Committee) are responsible for overseeing the Group’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

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

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

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

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

 Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.  Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

- 30 -  Obtain sufficient and appropriate audit evidence regarding the financial information of entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

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

The engagement partners on the audit resulting in this independent auditors’ report are Wen-Yea, Shyu and Kwan-Chung, Lai.

Deloitte & Touche Taipei, Taiwan Republic of China

February 27, 2020

Notice to Readers

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

For the convenience of readers, the independent auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and financial statements shall prevail.

- 31 -

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Walsin Lihwa Corporation

Opinion

We have audited the accompanying financial statements of Walsin Lihwa Corporation (the Company), which comprise the balance sheets as of December 31, 2019 and 2018, and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of other auditors (as set out in the Other Matter section of our report), the accompany financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants, Rule No. 1090360805 issued by the Financial Supervisory Commission of the Republic of China on February 25, 2020 and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

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

The following are key audit matters of the financial statements of the Company as of and for the year ended December 31, 2019:

Sales Revenue Recognition

The business unit’s main products include stainless steel bars and stainless steel cold-and-hot rolled coils. Aside from Taiwan, there are many customers in China, America, Southeast Asia and Europe and the sales are terms vary for different customers. Thus, we consider the reality of export sales revenue of stainless steel business unit as key audit matter. Refer to Notes 4 and 20 for related accounting policies of revenue recognition and disclosure information of the revenue recognition. We performed the following audit procedures in respect of the above key audit matter:

1. We verified and tested the internal control process of the export sales of stainless steel business unit.

2. We sampled and inspected the transactions of export sales revenue of stainless steel business unit to confirm its existence.

- 32 -

Inventory Valuation

As of December 31, 2019, the inventory of the Company amounted to NT$9,359,888 thousand which constituted 7.78% of the total assets, and the amount is material. Refer to Notes 4, 5 and 10 for related accounting policies of inventory and inventory valuation.

The inventory of the Company is stated at the lower of cost or net realizable value. The valuation of the net realizable value required significant judgment and estimation. In addition, the market price of copper and nickel fluctuated frequently, which significantly affects the valuation of wire, cable and specialty steel inventory. As a result, inventory valuation is regarded as key audit matter.

Our audit procedures in response to inventory valuation consisted of obtaining inventory valuation sheets prepared by management, selecting samples of estimated selling prices and tracing them to recent sales records to assess the rationale of the net realizable value determined by management. Moreover, by attending year-end inventory count, we assess the condition of the inventory to verify the completeness of obsolete goods.

Other Matter

The financial statements of certain equity-method investees included in the financial statements as of and for the years ended December 31, 2019 and 2018 were audited by other auditors. Our opinion, insofar as it relates to such investments, is based solely on the reports of other auditors. The investments in such investees amounted to NT$3,574,547 thousand and NT$3,443,078 thousand, which constituted 2.97% and 2.89% of the total assets as of December 31, 2019 and 2018, respectively, and the investment gains amounted to NT$56,873 thousand and NT$502,129 thousand for the years ended December 31, 2019 and 2018, respectively.

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

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

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

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

Auditors’ Responsibilities for the Audit of the Financial Statements

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

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

- 33 -

We also:

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

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

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

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

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

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

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

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

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

The engagement partners on the audit resulting in this independent auditors’ report are Wen-Yea, Shyu and Kwan-Chung, Lai.

- 34 -

Deloitte & Touche Taipei, Taiwan Republic of China

February 27, 2020

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 audit such consolidated financial statements are those generally applied in the Republic of China.

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

- 35 -

Audit Report from the Audit Committee

The Board of Directors has prepared and submitted the Company's 2019 business report, financial statements (including consolidated financial statements) and the profit distribution proposal, among which the financial statements (including consolidated financial statements) had been audited by Wen-Ya Hsu and Kuan-Chung Lai, CPAs of Deloitte & Touche, who also provided an auditor's report. The above business report, financial statements (including consolidated financial statements) and the profit distribution proposal have been verified by the Audit Committee to be without any discrepancies. This report is prepared in accordance with Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Act. Please review and approve the same.

Walsin Lihwa Corporation The convener of the Audit Committee: Hsueh, Ming-Ling

February 27, 2020

- 36 -

The Distribution Report of Compensation of the Employees and Directors for 2019

The distribution report of compensation of the employees and directors for 2019 is as follows:

1. This is conducted in compliance with Article 235-1 of the Company Act and the letter from MOEA dated June 11, 2015 (Ref. No.: Jin-Shang-Zi- 10402413890) and the letter from MOEA dated October 15, 2015 (Ref. No.: Jin-Shang-Zi-10402427800).

2. According to Article 25-1 of the Articles of Incorporation of the Company, if it has any profit after the closing of its annual book, the Company shall distribute no less than one percent as employee compensation and no more than one percent as director compensation.

3. For 2019, the audited profit of the Company was NT$3,159,195 (i.e., the gross profit before tax and excluding employees and directors compensation).

4. The Company intends to distribute NT$48,500,000 of employees compensation and NT$21,000,000 of directors compensation in cash for 2019.

5. The above employees and directors compensation has been adopted by a majority vote at the board of directors' meeting dated February 27, 2020 (i.e., the 19th meeting of the Board of Directors of the 18th term) attended by more than two-third of the directors. The Company has distributed the above compensation accordingly.

- 37 -

Walsin Lihwa Corporation Comparison Table of Amended Articles of Articles of Incorporation Amended Articles Current Articles Description Article 5 Article 5 The Company’s total capital is Sixty The Company’s total capital is Sixty Certain language has been amended Five Billion New Taiwan Dollars Five Billion New Taiwan Dollars (NT$65,000,000,000) which is (NT$65,000,000,000) which is divided into 6,500,000,000 shares divided into 6,500,000,000 shares with a face value of Ten New with a face value of Ten New Taiwan Taiwan Dollars (NT$10) per share. Dollars (NT$10) per share. The The afore-mentioned shares shall be afore-mentioned shares shall be issued in installments, and the issued in installments, and the unissued shares may be issued unissued shares shall be issued according to resolutions adopted by according to resolutions adopted by the board of directors as it deems the board of directors as it deems necessary. necessary. Share subscription warrants, Share subscription warrants, corporate bonds with warrants or corporate bonds with warrants or preferred shares with warrants may preferred shares with warrants may be issued within the amount of Eight be issued within the amount of Eight Billion New Taiwan Dollars Billion New Taiwan Dollars (NT$8,000,000,000) of the preceding (NT$8,000,000,000) of the preceding capital with the total of 800,000,000 capital with the total of 800,000,000 shares and each share at a face value shares and each share at a face value of Ten New Taiwan dollars (NT$10). of Ten New Taiwan dollars (NT$10). These shares may be issued in These shares may be issued in installments. installments. Where the Company is entitled to Where the Company is entitled to buy back its own shares according to buy back its own shares according to the law, the board of directors is the law, the board of directors is authorized to undertake such share authorized to undertake such share buyback pursuant to the law. buyback pursuant to the law. Article 11 Article 11 Unless otherwise provided for by Unless otherwise provided for by According to Article 177- law, a resolution of a shareholders' law, a resolution of a shareholders' 1 of the Company Act, it meeting shall be adopted by a meeting shall be adopted by a is specified that the majority vote of the shareholders majority vote of the shareholders shareholders may exercise who are present at the meeting and their voting rights by who are present at the meeting and represent more than half of the total electronic means. number of issued shares. The represent more than half of the total shareholders of the Company may number of issued shares.

- 38 -

Amended Articles Current Articles Description also exercise their voting rights by electronic means, and shall be deemed as present in person if they exercise their voting rights by electronic means. Relevant matters thereof shall be handled in accordance with the Company Act and relevant laws and regulations. Article 21 Article 21 The directors shall be entitled to be The directors shall be entitled to be In line with the corporate compensated with the respective compensated with the respective governance evaluation remunerations. The amount of remunerations despite of gains or indicators, the relevant remuneration is authorized to be losses of the Company. The amount results of the directors' determined by the Board of Directors of remuneration is authorized to be performance evaluation based on the evaluation of the determined by the Board of Directors should be taken into remuneration committee evaluating based on the evaluation of the consideration in the the degree of participation and value remuneration committee evaluating Company's compensation of contributions of the directors as the degree of participation and value payment process. Certain well as referring to the typical pay of contributions of the directors as language has also been levels adopted by peer companies. well as referring to the typical pay revised. levels adopted by peer companies. Article 25-1 Article 25-1 The Company may distribute no less The Company may distribute no less Certain language has been than 1% of profit of the current year than 1% of profit of the current year amended in line with the as employees’ compensation and to as employees’ compensation and to amendments to Articles distribute no maximum 1% of profit distribute no maximum 1% of profit 167-1, 167-2, 235-1 and of the current year as compensation of the current year as compensation 267 of the Company Act. of directors. The resolution of actual of directors. The resolution of actual amount of foresaid compensation amount of foresaid compensation shall be adopted by a majority vote at shall be adopted by a majority vote at a meeting of board of directors a meeting of board of directors attended by two-thirds of the total attended by two-thirds of the total number of directors; and in addition number of directors; and in addition thereto a report of such distribution thereto a report of such distribution shall be submitted to the shall be submitted to the shareholders’ meeting. However, shareholders’ meeting. However, company’s accumulated losses shall company’s accumulated losses shall have been covered. have been covered. Employees’ compensation shall be Employees’ compensation shall be distributed in the form of shares or in distributed in the form of shares or in cash; qualification requirements of cash; qualification requirements of employees including the employees employees including the employees of parents or subsidiaries of the of subsidiaries of the company Company meeting certain specific meeting certain specific requirements

- 39 -

Amended Articles Current Articles Description requirements which shall be defined which shall be defined by board of by board of directors. directors. The qualification requirements of or the distribution rules for the employees who are entitled to the treasury stock transferred, the employee warrants issued, subscription for new shares issued, and the restricted stock awards issued by the Company, including the employees of parents or subsidiaries of the company meeting certain specific requirements, shall be formulated by the board of directors as authorized. Article 26 Article 26 The Company’s chairman, The Company’s board of directors Certain language has been managerial officer and accounting shall prepare the statements and amended in line with manager shall prepare and sign or records for account settlement which Article 14-5 of the affix their chops the statements and shall be forwarded to audit Securities and Exchange records for account settlement which committee or certified public Act. shall be forwarded to audit accountants authorized by audit committee or certified public committee for auditing at least 30 accountants authorized by audit days prior to the date of the regular committee for auditing at least 30 Shareholders’ meeting. Such days prior to the date of the regular supervisors or certified public Shareholders’ meeting. Such accountants shall produce and submit supervisors or certified public the reports to the Shareholders’ accountants shall produce and submit meeting for ratification. the reports to the Shareholders’ meeting for ratification. Article 28 Article 28 After the Company has offset its After the Company has offset its Certain language has been accumulated losses from previous accumulated losses from previous amended. years and paid all tax due, the years and paid all tax due, the Company shall set aside 10% of its Company shall set aside 10% of its net profits as legal reserve, except net profits as legal reserve, except when the legal reserve equals to the when the legal reserve equals to the total authorized capital of the total authorized capital of the Company. From the remainder Company. From the remainder calculated above plus the surplus specified in the preceding paragraph retained earnings of previous year, plus the surplus retained earnings of

- 40 -

Amended Articles Current Articles Description the Company shall set aside or previous year, the Company shall set reverse the special reserve as aside or reverse the special reserve as stipulated by the law or the stipulated by the law or the competent authority. Then the Board competent authority. For the of Directors shall draft an earning remainder, the Board of Directors distribution proposal submitted to the shall draft an earning distribution Shareholders’ meeting for resolution proposal submitted to the to distribute shareholder's dividends. Shareholders’ meeting for resolution to distribute shareholder's dividends. Article 31 Article 31 These Articles of Incorporation were These Articles of Incorporation were The date of amendment established on August 1, 1966. The established on August 1, 1966. The has been added. first amendment was made on March first amendment was made on March 5, 1967…the 44th amendment was 5, 1967…the 44th amendment was made on June 12, 2012; the 45th made on June 12, 2012; the 45th amendments were made on May 27, amendments were made on May 27, 2015 (Except for the amendment to 2015 (Except for the amendment to Article 14 comes into effect from Article 14 comes into effect from 2017; the rest parts of the Articles 2017; the rest parts of the Articles were in operation after shareholders were in operation after shareholders meeting resolution is made); the 46th meeting resolution is made); the 46th amendment were made on May 25 amendment were made on May 25 2016; except for the amendment to 2016; except for the amendment to Article 14 which shall take into Article 14 which shall take into effect in 2017, the rest parts of the effect in 2017, the rest parts of the Articles shall take into effect upon Articles shall take into effect upon resolution of the shareholders resolution of the shareholders meeting; the 47th amendment were meeting; the 47th amendment were made on May 26, 2017; the 48th made on May 26, 2017; the 48th amendment were made on May 25, amendment were made on May 25, 2018; the 49th amendment were made 2018. The same procedure shall on May 29, 2019. The same apply to any future amendment. procedure shall apply to any future amendment.

- 41 -

Walsin Lihwa Corporation Comparison Table of Amended Articles of Procedures for Financial Derivatives Transactions Amended Article Current Articles Description Chapter 2 Content Chapter 2 Content Article 1 Responsible departments Article 1 Responsible departments 1. Revising the names 1.1 Finance Division: (Omitted) 1.1 Finance Department: (Omitted) of the responsible 1.2 Risk Management Division: 1.2 Foreign and Interest Rate Risk departments in (Omitted) Management Department: response to changes (Omitted) in the organization 1.3 Resources Business Group: 1.3 Key Materials Risk Management and to clearly define (Omitted) Department: (Omitted) the responsible departments. 1.4 Accounting Division: (Omitted) 1.4 Accounting Department: (Omitted) 2. In response to the 1.5 Auditing Office: Responsible for 1.5 Auditing Department: operating needs of audit of transactions and Responsible for audit of the Company in outstanding positions based on transactions and outstanding relation to the sale the reports prepared by the positions based on the reports of its subsidiary, Accounting prepared by the Accounting Nanjing Walsin Division…(Omitted) Department…(Omitted) Metal Co., Ltd. in 2019, and the capital Article 2 Functions and management Article 2 Functions and management injection into Yantai principles principles Walsin Stainless 2.2.2 The Accounting Division 2.2.2 The Accounting Department Steel Co., Ltd. shall prepare reports on a shall prepare reports on a regular basis to inform the regular basis to inform the senior management of the net senior management of the net gain or loss in the current gain or loss in the current accounting period. accounting period.

2.3 Limits on total transaction 2.3 Limits on total transaction amount amount 2.3.1 Hedging positions: 2.3.1 Hedging positions: (1) Foreign exchange and interest (1) Foreign exchange and interest rate trading: Conducted rate trading: Conducted pursuant to the authorization pursuant to the authorization provided to Risk Management provided to Foreign Exchange Division. and Interest Rate Risk Management Department. (2) Materials: Based on actual (2) Materials: Based on actual needs decided by Resources needs decided by Key Business Group. Materials Risk Management Department.

- 42 -

Amended Article Current Articles Description 2.3.2 Non-hedging positions: 2.3.2 Non-hedging positions: (1) Foreign exchange and interest (1) Foreign exchange and interest rate trading: Prohibited. rate trading: Prohibited. (2) Materials: (2) Materials: Copper: No more than 40,000 Copper: No more than 80,000 tons; tons; Nickel: No more than 20,000 Nickel: No more than 6,000 tons; tons; Other metals: Subject to Other metals: Subject to written approval by the written approval by the chairman of the board with chairman of the board with trading amount limits to be trading amount limits to be established. established.

Article 3 Implementation procedures Article 3 Implementation procedures 3.2 Risk Management Division 3.2 Risk Management shall abide by the authorized Departments shall abide by limits as provided in 3.3 when the authorized limits as engaging in derivative provided in 3.3 when trading, and written approval engaging in derivative by the chairman of board shall trading, and written approval be required for other by the chairman of board shall categories of hedge trading. be required for other categories of hedge trading. 3.3 Total value of accumulated open 3.3 Total value of accumulated open interests to be approved by the interests to be approved by each highest authorized levels of the authorized level of the Company: Company: Foreign exchange and interest rate Foreign exchange and interest rate trading (in million USD) trading (in million USD) Non- Non- Hedging Hedging Level Hedging Level Hedging Contracts Contracts Contracts Contracts Risk Authorize 0 Risk Authorize 0 Manageme d by the Manageme d by the nt Chairman nt Chairman Division based on Departmen based on Head actual t Head actual needs needs General Authorize 0 General Authorize 0 Manager d by the Manager d by the Chairman Chairman based on based on actual actual needs needs

- 43 -

Amended Article Current Articles Description Chairman Conducted 0 Chairman Conducted 0 according according to actual to actual needs needs

Materials Unit: Metric Ton Materials Unit: Metric Ton Non- Non- Hedging Hedging Item Hedging Level Hedging Contracts Contracts Contracts Contracts Total Key Conducted Copper: Conducted Copper: value of Materials according 80,000 according 40,000 accumulat Departmen to actual Nickel: to actual Nickel: ed open t Head needs 6,000 needs 20,000 interests General Manager Highest of authorized Chairman Resources level Business Group

Article 4 Operating Requirements Article 4 Operating Requirements 4.2.6 Internal control 4.2.6 Internal control (2) Review, accounting adjustment, (2) Review, accounting adjustment, and valuation of derivatives and valuation of derivatives trading shall be conducted by the trading shall be conducted by the Accounting Division. Accounting Department. (3) The Accounting Division shall (3) The Accounting Department shall establish a log book on the establish a log book on the derivatives trading… (Omitted) derivatives trading… (Omitted) 4.2.7 Periodic Evaluation 4.2.7 Periodic Evaluation (1) The Accounting Division shall (1) The Accounting Department shall appraise outstanding positions of appraise outstanding positions of derivatives based on market derivatives based on market values or fair values and prepare values or fair values and prepare appraisal reports. (Omitted) appraisal reports. (Omitted) 4.2.9 Others 4.2.9 Others (2) The Procedures are established (2) The Procedures are established by Risk Management Division by Finance Department and shall and shall be passed by an audit be passed by an audit committee committee as well as the board of as well as the board of directors directors and submitted to the and submitted to the shareholders' shareholders' meeting for meeting for approval. Any approval. Any amendment to the amendment to the Procedures

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Amended Article Current Articles Description Procedures shall also follow the shall also follow the aforementioned process. aforementioned process.

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Walsin Lihwa Corporation Comparison Table of Amended Articles of Rules and Procedures of Shareholders’ Meetings Amended Article Current Articles Description Article 2 Article 2 Unless otherwise provided by law or Unless otherwise provided by law or Amended in line with regulation, the Company's regulation, the Company's Paragraph 5, Article shareholders meetings shall be shareholders meetings shall be 172 of the Company convened by the Board of Directors. convened by the Board of Directors. Act. Election or discharge of directors, Election or discharge of directors, amendments to the Articles of amendments to the Articles of Incorporation, reduction of capital, Incorporation, the dissolution, application for the approval of merger, or spin-off of the Company, ceasing its status as a public or any matter prescribed in Article company, approval of competing 185, paragraph 1 of the Company with the company by directors, Act or Articles 26-1 and 43-6 of the surplus profit distributed in the form Securities and Exchange Act shall be of new shares, reserve distributed in set out in the notice of the reasons for the form of new shares, the convening the shareholders meeting. dissolution, merger, or spin-off of None of the above matters may be the Company, or any matter raised by an extraordinary motion. prescribed in Article 185, paragraph 1 of the Company Act or Articles 26- 1 and 43-6 of the Securities and Exchange Act shall be set out, and its essential content shall be explained, in the notice of the reasons for convening the shareholders meeting. None of the above matters may be raised by an extraordinary motion. The essential contents may be posted on the website designated by the competent authority in charge of securities affairs or the company, and such website shall be indicated in the above notice. Where the notice of reasons for This paragraph has been newly Newly added in line convening the shareholders' meeting added. with the letter dated has specified any entire re-election of August 6, 2018 (Ref. directors and the date of their No.: Jin-Shang-Zi- assumption of office, after such 10702417500). completion of such re-election in such shareholders' meeting, the date of their assumption of office shall

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Amended Article Current Articles Description not be changed by an extraordinary motion or otherwise in the same meeting. A shareholder holding 1 percent or A shareholder holding 1 percent or Certain wording has more of the total number of issued more of the total number of issued been revised for and outstanding shares may submit and outstanding shares may submit clarity. to the Company a written proposal to the Company a written proposal for discussion for a regular for discussion for a regular shareholders meeting. Such proposal, shareholders meeting. Such proposal, receipt and review shall be handled receipt and review shall be handled pursuant to the Company Act and the pursuant to the Company Act and the relevant applicable laws and relevant applicable laws and regulations. The Company shall regulations. The Company shall inform and make a proposal to inform shareholders for the result of shareholders for the result of aforesaid issues by the date of aforesaid issues by the date of convening and to list such proposal convening and to list such proposal on the shareholders meeting notice. on the shareholders meeting notice. The reasons for unlisted proposals The reasons for unlisted proposals should be explained in the general should be explained in the general shareholder meeting. The shareholder meeting. The shareholder who proposes such shareholder who proposes such proposal shall attend the general proposal shall attend the general shareholders meeting in person or to shareholders meeting in person or to appoint an agent to attend it, and join appoint an agent to attend it, and join the discussion. the discussion. The convention of the regular The convention of the regular shareholders meeting shall be shareholders meeting shall be notified to each shareholder 30 days notified to each shareholder 30 days before the date of meeting or 15 days before the date of meeting or 15 days before the date of an extraordinary before the date of an extraordinary shareholders meeting. For the shareholders meeting. For the shareholders holding less than 1000 shareholders holding less than 1000 shares, the Company may publicly shares, the Company may publicly announce the convention of the announce the convention of the regular shareholders meeting by regular shareholders meeting by uploading the information to the uploading the information to the Market Observation Post System Market Observation Post System (MOPS) 30 days before the date of (MOPS) 30 days before the date of meeting or 15 days before the date of meeting or 15 days before the date of an extraordinary shareholders an extraordinary shareholders meeting. meeting. The reasons for convening the The reasons for convening the meeting shall be specified in the meeting shall be specified in the notice or announcement. Upon the notice or announcement. Upon the

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Amended Article Current Articles Description consent of a receiving party, such consent of a receiving party, such information may be given in digital information may be given in digital form. form. The production and announcement of The production and announcement of the agenda handbook of the the agenda handbook of the Company’s shareholders meeting Company’s shareholders meeting shall be in compliance with the shall be in compliance with the Regulations Governing Content and Regulations Governing Content and Compliance Requirement for Compliance Requirement for Shareholders’ Meeting Agenda Shareholders’ Meeting Agenda Handbooks of Public Companies. Handbooks of Public Companies. Article 10 Article 10 If a shareholders meeting is If a shareholders meeting is This revision has been convened by the Board of Directors, convened by the Board of Directors, made in line with the the meeting agenda shall be set by the meeting agenda shall be set by practical operation of the Board of Directors, and each the Board of Directors. The meeting electronic voting and proposal shall be voted on one by shall proceed in the order set by the to implement the one. The meeting shall proceed in the agenda and may not be changed proposal-by-proposal order set by the agenda and may not without a resolution of the voting. be changed without a resolution of shareholders meeting. the shareholders meeting. Preceding paragraph also applies Preceding paragraph also applies shareholders’ meetings convened by shareholders’ meetings convened by a party with the power to convene a party with the power to convene that is not the Board of Directors. that is not the Board of Directors. The chair shall not declare the The chair shall not declare the meeting adjourned prior to the meeting adjourned prior to the completion of deliberation on the completion of deliberation on the meeting agenda of the preceding two meeting agenda of the preceding two paragraphs (including extraordinary paragraphs (including extraordinary motions), except by a resolution of motions), except by a resolution of the shareholders meeting. If the chair the shareholders meeting. If the chair declares the meeting adjourned in declares the meeting adjourned in violation of the rules of procedure, violation of the rules of procedure, the other members of the Board of the other members of the Board of Directors shall promptly assist the Directors shall promptly assist the attending shareholders in electing a attending shareholders in electing a new chair in accordance with new chair in accordance with statutory procedures, by agreement statutory procedures, by agreement of a majority of the votes represented of a majority of the votes represented by the attending shareholders, and by the attending shareholders, and then continue the meeting. then continue the meeting. The chair shall allow ample The chair shall allow ample The chair shall arrange opportunity during the meeting for opportunity during the meeting for an adequate amount of explanation and discussion of explanation and discussion of time for shareholders

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Amended Article Current Articles Description proposals and of amendments or proposals and of amendments or to exercise their voting extraordinary motions put forward extraordinary motions put forward by rights, in order to by the shareholders; when the chair the shareholders; when the chair is of maintain shareholder's is of the opinion that a proposal has the opinion that a proposal has been rights and interests. been discussed sufficiently to put it discussed sufficiently to put it to a to a vote, the chair may announce the vote, the chair may announce the discussion closed and call for a vote. discussion closed and call for a vote. In addition, the chair shall arrange an adequate amount of time for voting. Article 15 Article 15 Matters relating to the resolutions of Matters relating to the resolutions of This revision has been a shareholders meeting shall be a shareholders meeting shall be made in line with the recorded in the meeting minutes. The recorded in the meeting minutes. The practical operation of meeting minutes shall be signed or meeting minutes shall be signed or electronic voting and sealed by the chair of the meeting sealed by the chair of the meeting to implement the and a copy of the minutes shall be and a copy of the minutes shall be proposal-by-proposal distributed to each shareholder distributed to each shareholder voting. within 20 days after the conclusion within 20 days after the conclusion of the meeting. The meeting minutes of the meeting. The meeting minutes may be produced and distributed in may be produced and distributed in electronic form. electronic form. The Company may distribute the The Company may distribute the meeting minutes of the preceding meeting minutes of the preceding paragraph by means of a public paragraph by means of a public announcement made on the MOPS. announcement made on the MOPS. The meeting minutes shall accurately The meeting minutes shall accurately record the year, month, day, and record the year, month, day, and place of the meeting, the chair's full place of the meeting, the chair's full name, the methods by which name, the methods by which resolutions were adopted, and a resolutions were adopted, and a summary of the deliberations and summary of the deliberations and voting results (including the their results, and shall be retained for calculation of the number of voting the duration of the existence of the rights) (in case of any election of Company. directors, the number of votes that each candidate wins shall be disclosed), and shall be retained for the duration of the existence of the Company.

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Walsin Lihwa Corporation List of Candidate for Directors and Independent Directors Shareholding No. Title Name Sex Education Experience Current Positions (Unit: share) 1 Director Yu-Lon M Business Chairman, Walsin Lihwa Corporation Chairman of Walsin Lihwa 45,961,773 Chiao Administration Corporation and Concord Venture Department, Capital Group; Vice President of University of Walsin (Hangzhou) Power Cable Co., Washington Ltd. and Jiangsu Taiwan Trade Mart Development Co., Ltd.; Director of Walton Advanced Engineering, Inc., Ltd., Jincheng Construction Co., Ltd., Walsin Lihwa Holding Co., Ltd., Walsin Specialty Steel Corporation, Walsin (Nanjing) Development Co., Ltd. and Nanjing Walsin Expo Exhibition Ltd.; Vice President and Commissioner of PT. Walsin Lippo Industries and P.T. Walsin Lippo Kabel. 2 Director Patricia F MBA at College Former Assistant Vice President of Vice Chairman of Walsin Lihwa 91,969,006 Chiao of Notre Dame Investment Dept., Assistant Vice Corporation; Director of Walsin President of Financial Dept., Head of Lihwa Holding Co., Ltd., Renowned Financial Investment Dept., Assistant International Limited, Walsin

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Shareholding No. Title Name Sex Education Experience Current Positions (Unit: share) Vice President of Commodity Center Specialty Steel Corporation; President and Financial Investment of Chin-Xin Investment Co., Ltd. Management Center, President of Insulated Wire & Cable BU of Walsin Lihwa Corporation 3 Director Yu-Cheng M University of Former Chairman of Walsin Lihwa Chairman of Winbond Electronics 39,508,661 Chiao Washington Corporation Corporation, Chin-Xin Investment Co., Masters of Ltd; Director of Walsin Lihwa Electrical Corporation, Walsin Technology Engineer and Corporation, Nuvoton Technology Business Corporation, Jincheng Construction Administration Co., Ltd., United Industrial Gases Co., Ltd., MiTAC Holdings Corporation, Landmark Group Holdings Ltd., Peaceful River Corporation, Winbond International Corporation, Winbond Electronics Corporation America, Marketplace Management Limited, Nuvoton Investment Holding Ltd., Pigeon Creek Holding Co.,Ltd., Songyong Investment Co., Ltd.; CEO of Winbond Electronics Corporation; Manager, Goldbond LLC; Independent Director & convener of the Audit

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Shareholding No. Title Name Sex Education Experience Current Positions (Unit: share) Committee and Compensation Committee at Taiwan Cement Corp.; Independent Director, member of the Audit Committee and convener of the Compensation Committee of Synnex Technology International Corporation. 4 Director Yu-Heng M Golden Gate Former Vice Chairman of Walsin Chairman of Walsin Technology 57,792,197 Chiao University, Lihwa Corporation Corporation, Walton Advanced Master of Engineering, Inc., HannStar Board Business Corp., Global Brands Manufacture, Administration Prosperity Dielectrics Co., Ltd., Info- Tek Corp., VVG Co. Ltd., and HannStar Board Corporation (Jiangyi); Director of Walsin Lihwa Corporation, Career Technology Mfg. Co., Ltd., Sheng Cheng Industry, Yu Yue Corporation, and An Xin e- Commerce. 5 Director Wei-Shin F Ph.D., College of Chairman of Yuanta Securities Chairman of Hannstouch Solution 244,033 Ma Humanities and Investment Trust Co., Ltd. and Incorporated, Golden Apple Social Sciences Hannstar Display Corporation Investment Company and White of National Tsing Stone Management Consultancy; Hua University, Director of Walsin Lihwa Peking Corporation, Hannstar Display

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Shareholding No. Title Name Sex Education Experience Current Positions (Unit: share) University, Corporation, and Winbond Master of Electronics Corporation. Business Administration for Senior Managers, University of California (Berkeley), Department of East Asian Languages 6 Director Chin-Xin N/A N/A Director of Walsin Lihwa Director of Walsin Lihwa 210,011,000 Investment Corporation, Nuvoton Technology Corporation, Nuvoton Technology Co., Ltd. Corporation, HannStar Board Corp., Corporation, HannStar Board Corp., White Stone Management White Stone Management Consultancy, Global Investment Consultancy, Global Investment Holdings and Huabao Seed Breeding Holdings and Huabao Seed Breeding Co., Ltd. Co., Ltd. 7 Director Andrew M Department of Head of Political Section, Ministry of Vice President of Phu My Hung 0 Hsia Law, Fu-Jen Foreign Affairs Representative Office International Corporation; Chief Catholic in the United States; Deputy Representative of Central Trading & University; Representative of the Ministry of Development Corporation (Samoa)

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Shareholding No. Title Name Sex Education Experience Current Positions (Unit: share) Master's Degree Foreign Affairs Representative Office in Diplomacy, in Canada; Director of the Ministry of National Foreign Affairs Office in New York; Chengchi Representative of the Ministry of University; MLitt Foreign Affairs in India; Political in Law, Deputy Minister of the Ministry of University of Foreign Affairs; Representative of the Oxford (UK) Ministry of Foreign Affairs in Indonesia; Deputy Minister of the Ministry of National Defense; Chairman of the Mainland Affairs Council, Executive Yuan

8 Independent Ming-Ling M Soochow PwC Taiwan Director; Executive Independent Director of Wasin Lihwa 0 Director Hsueh University, Director, Taiwan Corporate Corporation, Yuanta Financial Master in Governance Association; Adjunct Holding Co., Ltd. and Yuanta Accountancy; Professor, EMBA, National Tsing Commercial Bank Co., Ltd., Lite-On Bloomsburg Hua University Technology Corporation, TTY University of Biopharm Company Limited Pennsylvania,

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Shareholding No. Title Name Sex Education Experience Current Positions (Unit: share) Master of Business Administration;

9 Independent King-Ling M Mississippi State U.S. representative of China Steel Director of Sheh Fung Screws Co., 0 Director Du University, Corporation (Steel Division, U.S. Ltd and Green River Holding Co., Masters in Purchasing Group of Executive Ltd.; Independent Director of Walsin Mechanical Yuan), Deputy General Manager of Lihwa Corporation，Ta Liang Engineering; Business Department, Engineering Technology Co., Ltd. and Sheh Kai New York Department, Corporate Planning Precision Co., Ltd. University, Department, and Executive Deputy Financial General Manager; General Manager, Management Kaohsiung Rapid Transit Research; Corporation; Chairman, China Ecotek Stanford Corporation. University, Advance Marketing Research 10 Independent Shiang- M The School of President of Mercuries Data Systems Chairman of Mercuries Data Systems 0 Director Chung Industrial Ltd. Ltd., Nanjing Mercuries Development

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Shareholding No. Title Name Sex Education Experience Current Positions (Unit: share) Chen Engineering at of Software Co., Ltd., Mercuries Purdue Insurance Agent Co., Ltd., Hipact University Tech Inc.; Director of Mercuries Holdings Corporation, Mercuries Data Systems Ltd., Shang-Ling Investment Inc., Shang-Hong Investment Inc., Yangzheng Investment Co., Ltd. and EASYCARD Investment Holding Company; Supervisor of Digicentre Co., Ltd.; Inpendent Director of Walsin Lihwa Corporation and Teco Image Systems Inc.; Director of Taiwan Masters Golf Promotion Foundation and Institute for National Policy Research Foundation; Director of the Friends of the Police Association of the Republic of China; Vice President of Criminal Investigation and Prevention Association of the Republic of China; Chairman of the Security Police Third Corps Police Club of the Friends of

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Shareholding No. Title Name Sex Education Experience Current Positions (Unit: share) the Police Association of the Republic of China; President of Mercuries Data Systems Ltd.. 11 Independent Fu-Hsiung M MBA, Graduate Managing Director, Central Trust of Chairman of Taiwan Cooperative 0 Director Hu School of China; Director, Mega International Securities Co., Ltd. Business, Commercial Bank; Director, National Taiwan Economic Energy and Agriculture University Department, Executive Yuan; Deputy Chairman, Council of Agriculture; Chairman, Central Animal Products Association, Animal Science and Technology Research Institute, and Joint Credit Information Center.

- 57 - Walsin Lihwa Corporation Explanations of involvement of directors or their related persons in the field of the Company's business

(1) Mr. Yu-Lon Chiao Names of Other Companies Where Business Items Identical or Similar to the Title He Serves Company’s Jiangsu Taiwan Trade Mart Vice Chairman Commercial and real estate Development Co., Ltd. Walsin (Hangzhou) Power Cable Vice Chairman Production and sale of wire and cable Co., Ltd. Commercial and real estate Jincheng Construction Co., Ltd. Director H701010 Residence and Buildings Lease Walsin (Nanjing) Development Co., Construction and Development Director Commercial and real estate Ltd. Nanjing Walsin Expo Exhibition Director Commercial and real estate Ltd.

Vice President & PT. Walsin Lippo Industries Production and sale of specialty steel Commissioner Vice President & P.T. Walsin Lippo Kabel Production and sale of wire and cable Commissioner

(2) Mr. Yu-Cheng Chiao Names of Other Companies Where Business Items Identical or Similar to the Title He Serves Company’s Independent Commercial and real estate Taiwan Cement Corporation Director H701010 Residence and Buildings Lease CommercialConstruction andand realDevelopment estate Jincheng Construction Co., Ltd. Director H701010 Residence and Buildings Lease

Construction and Development (3) Mr. Yu-Heng Chiao Names of Other Companies Where Business Items Identical or Similar to the Title He Serves Company’s Production and sale of wire and cable Global Brands Manufacture Ltd. Chairman Production and sale of specialty steel Commercial and real estate VVG Inc. Chairman H701010 Residence and Buildings Lease Construction and Development

- 58 - Names of Other Companies Where Business Items Identical or Similar to the Title He Serves Company’s Commercial and real estate Sheng Cheng Industry Director H701010 Residence and Buildings Lease Construction and Development Yu Yue Corporation Director Commercial and real estate

(4) Ms. Wei-Shin Ma Names of Other Companies Where Business Items Identical or Similar to the Title She Serves Company’s HannsTouch Solution Incorporated Chairman Commercial and real estate White Stone Management H701010 Residence and Buildings Lease Chairman Consultancy Construction and Development Commercial and real estate Xinshi Yuema Investment Co., Ltd. Chairman H701010 Residence and Buildings Lease Construction and Development H701010 Residence and Buildings Lease Hannstar Display Corporation Director Construction and Development

(5) Chin-Xin Investment Co., Ltd. Names of Other Companies Where Business Items Identical or Similar to the Title He Serves Company’s White Stone Management H701010 Residence and Buildings Lease Director Consultancy Construction and Development

(6) Mr. Andrew Hsia Names of Other Companies Where Business Items Identical or Similar to the Title He Serves Company’s Vice President Phu My Hung Holdings Group and Spokesman Commercial and Real Estate; Residence and Buildings Lease Construction and Central Trading & Development Chief Development Corporation (Samoa) Representative

(7) Mr. Ming-Ling Hsueh Names of Other Companies Where Business Items Identical or Similar to the Title He Serves Company’s H701010 Residence and Buildings Lease Independent Lite-On Technology Corporation Construction and Development Director E601010 Electric Appliance Construction

- 59 - (8) Mr. King-Ling Du Names of Other Companies Where Business Items Identical or Similar to the Title He Serves Company’s Independent Sheh Kai Precision Co., Ltd. Production and sale of specialty steel Director Sheh Fung Screws Co., Ltd. Director Production and sale of specialty steel

(9) Mr. Shiang-Chung Chen Names of Other Companies Where Business Items Identical or Similar to the Title He Serves Company’s Chairman Mercuries Data Systems Ltd E601010 Electric Appliance Construction & President Mercuries Information Systems International Ltd Director E601010 Electric Appliance Construction Ltd.-

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