HON HAI PRECISION INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT MARCH 31, 2021 AND 2020 (STOCK CODE: 2317) Company Address: No. 2, Ziyou St., Tucheng Industrial District, Tucheng Dist., New Taipei City 236, Taiwan (R.O.C.) Tel: (02)2268-3466 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. HON HAI PRECISION INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS AND INDEPENDENT AUDITORS’ REVIEW REPORT MARCH 31, 2021 AND 2020 Table of Contents Item Page I. Front Cover 1 II. Table of Contents 2 III. Review Report of Independent Accountants 3 ~ 4 IV. Consolidated Balance Sheets 5 ~ 6 V. Consolidated Statements of Comprehensive Income 7 ~ 8 VI. Consolidated Statements of Changes in Equity 9 ~ 10 VII. Consolidated Statements of Cash Flows 11 ~ 12 VIII. Notes to the Consolidated Financial Statements 13 ~ 115 1. History and Organization 13 2. Date of Authorization for Issuance of the Consolidated 13 Financial Statements and Procedures for Authorization 3. Application of New Standards, Amendments and 13 ~ 14 Interpretations 4. Summary of Significant Accounting Policies 14 ~ 39 5. Critical Accounting Judgments, Estimates and Assumptions 39 ~ 41 on Uncertainty 6. Details of Significant Accounts 41 ~ 82 7. Related Party Transactions 83 ~ 87 8. Pledged Assets 87 9. Significant Contingent Liabilities and Unrecognized Contract 88 Commitments 10. Significant Disaster Loss 89 11. Significant Events after the Balance Sheet Date 89 12. Others 89 ~ 108 13. Supplementary Disclosures 108 ~ 109 14. Segment Information 109 ~ 110 2 INDEPENDENT AUDITORS' REVIEW REPORT TRANSLATED FROM CHINESE Financial Review No. 21000482 (2021) To the Board of Directors and Shareholders of Hon Hai Precision Industry Co., Ltd. Introduction We have reviewed the accompanying consolidated balance sheets of Hon Hai Precision Industry Co., Ltd. and its subsidiaries as at March 31, 2021 and 2020, and the related consolidated statements of comprehensive income, of changes in equity, of cash flows and notes to the consolidated financial statements, including a summary of significant accounting policies, for the three-month periods then ended. According to the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard (IAS) 34, “Interim Financial Reporting,” as endorsed by the Financial Supervisory Commission (FSC), preparation of the accompanying consolidated financial statements reasonably representing the financial status is the responsibility of management; our responsibility is to issue a report on these consolidated financial statements based on our reviews. Scope of Review Except as explained in the Basis for Qualified Conclusion, we conducted our review in accordance with the Generally Accepted Auditing Standards (GAAS) No. 65, “Review of Financial Statements.” A review of interim financial information consists of making inquiries, primarily to persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to achieve assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express such an opinion. Basis for Qualified Conclusion As described in Note 4(3) and 6(8), the financial statements of some insignificant subsidiaries that are consolidated into this consolidated financial report, investments accounted for under the equity method and the information disclosed in Note 13 were based solely on the reports prepared by those subsidiaries, which were not reviewed by independent accountants. Total assets of those consolidated subsidiaries (including investments accounted for under the equity method) amounted to NT$554,815,523 thousand and NT$516,414,545 thousand, constituting 16.05% and 17.08% of the consolidated total assets and total liabilities amounted to NT$139,450,638 thousand and NT$205,713,502 thousand, constituting 6.96% and 12.45% of the consolidated total liabilities as of March 31, 2021 and 2020, respectively. Total comprehensive income (including share of the profit or loss of the affiliates and joint ventures that are accounted under the equity method) of those consolidated subsidiaries for of the three-month periods ended March 31, 2021 and 2020 were at a profit of NT$8,476,481 thousand and a loss of NT$5,438,356 thousand, respectively, constituting 22.73% and 18.31% of the consolidated total comprehensive income, respectively. Qualified Conclusion Based on our reviews, except for the effect of such adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries, investments account for under equity method and the information disclosed in Note 13 been reviewed by independent accountants, we are not aware of any material modifications that should 3 be made to the consolidated financial statements referred to above for them to present fairly, in all material respects, the financial position of Hon Hai Precision Industry Co., Ltd. and its subsidiaries as at March 31, 2021 and 2020, its financial performance and cash flows for the three-month periods then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IAS No. 34, “Interim Financial Reporting,” as endorsed by the FSC. PricewaterhouseCoopers, Taiwan CPA Hsu, Yung-Chien CPA Hsu, Sheng-Chung Former Securities Commission of the Ministry of Finance Approval No.:(84) Taiwan-Finance-Securities (6) 13377 Financial Supervisory Commission Approval No.: Jin-Guan-Zheng-Shen-Zi No. 1010034097 May 14, 2021 4 HON HAI PRECISION INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 31, 2021, DECEMBER 31 AND MARCH 31, 2020 (CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2021 AND 2020 ARE UNAUDITED) Unit: Expressed in thousands of New Taiwan Dollars March 31, 2021 December 31, 2020 March 31, 2020 Assets Notes Amount % Amount % Amount % Current assets 1100 Cash and cash 6(1) equivalents $ 1,112,174,828 32 $ 1,232,794,015 34 $ 931,434,201 31 1110 Financial assets at fair 6(2) value through profit or loss – current 4,252,850 - 6,285,594 - 4,473,572 - 1136 Financial assets at 6(4), 8 amortized cost – current 46,576,058 1 38,783,566 1 85,679,240 3 1170 Accounts receivable, net 6(5) 745,890,062 22 903,070,230 25 622,757,155 20 1180 Net accounts receivable 7 – related parties 29,730,781 1 39,414,164 1 28,434,024 1 1200 Other receivables 6(6) 52,187,919 2 58,237,719 2 54,272,273 2 1210 Other receivables – 7 related parties 8,250,774 - 5,285,774 - 15,581,029 - 130X Inventory 6(7) 634,982,642 18 582,113,735 16 532,240,638 18 1410 Prepayments 7 20,348,193 1 18,664,505 - 22,061,968 1 11XX Total current assets 2,654,394,107 77 2,884,649,302 79 2,296,934,100 76 Non-current assets 1510 Financial assets at fair 6(2) value through profit or loss – non-current 91,901,881 3 83,681,186 2 85,621,808 3 1517 Financial assets at fair 6(3) value through other comprehensive income – non-current 95,167,908 3 87,074,089 2 55,656,421 2 1535 Financial assets at 6(4), 8 amortized cost – non- current 17,780,954 1 18,786,030 1 12,961,571 - 1550 Investments accounted 6(8) for under equity method 171,861,057 5 175,199,441 5 161,601,359 5 1600 Property, plant and 6(9), 8 equipment 289,515,599 8 287,091,978 8 277,457,385 9 1755 Right-of-use assets 6(10), 7 45,650,542 1 46,268,685 1 46,660,405 2 1760 Investment property – 6(12) net 10,689,636 - 11,083,273 - 6,609,334 - 1780 Intangible assets 6(13) 46,375,679 1 44,760,083 1 41,431,581 1 1840 Deferred income tax 6(37) assets 21,133,944 1 19,946,852 1 21,670,233 1 1900 Other non-current assets 6(14) 11,880,286 - 15,734,671 - 16,072,142 1 15XX Total non-current assets 801,957,486 23 789,626,288 21 725,742,239 24 1XXX Total assets $ 3,456,351,593 100 $ 3,674,275,590 100 $ 3,022,676,339 100 (Continued) 5 HON HAI PRECISION INDUSTRY CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS MARCH 31, 2021, DECEMBER 31 AND MARCH 31, 2020 (CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2021 AND 2020 ARE UNAUDITED) Unit: Expressed in thousands of New Taiwan Dollars March 31, 2021 December 31, 2020 March 31, 2020 Liabilities and equity Notes Amount % Amount % Amount % Current liabilities 2100 Short-term loans 6(16) $ 464,506,666 13 $ 446,422,100 12 $ 374,192,060 13 2110 Short-term notes and bills 6(15) payable 43,945,617 1 39,101,893 1 29,963,286 1 2120 Financial liabilities at fair 6(2) value through profit or loss - current 2,010,356 - 2,291,221 - 3,293,360 - 2170 Accounts payable 780,891,457 23 1,037,912,518 28 642,432,165 21 2180 Accounts payable - related 7 parties 22,892,268 1 27,680,046 1 24,190,374 1 2200 Other payables 6(17), 7 248,018,907 7 220,177,215 6 186,863,873 6 2230 Current income tax liabilities 24,641,380 1 24,004,318 1 16,138,489 1 2250 Provisions for liabilities - 6(24) current 3,706,271 - 4,136,517 - 2,547,523 - 2280 Lease liabilities - current 7 8,963,534 - 9,058,272 - 7,760,497 - 2300 Other current