Edimax Technology Co., Ltd. 2021Annual Shareholders

Edimax Technology Co., Ltd.

2021Annual Shareholders’ Meeting Minutes (Translation)

Time: 9:00 am on Friday, July 30, 2021 Place: 1F., No.278, Xinhu 1st Rd., Neihu Dist., Taipei City, Taiwan Total outstanding Edimax shares: 189,370,233 shares Total shares represented by shareholders present in person or by proxy: 109,346,565 shares (among them, 3,133,509 shares voted via electronic transmission) Percentage of shares held by shareholders present in person or by proxy: 57.74% Chairman: Guan-Sheng Renn Recorder: Nai-Tzu Kuo Participants:

Han-Shen Lee, Director Liang-Jung Pan, Director Ka Wah Investment Co., Ltd. Representative: Yu-Chang Chiu, Director Ka Wah Investment Co., Ltd. Representative: Jung-Lung Hung, Director Ching-Te Hou, Director Chueh-Shi Wang, Director Yung-Shao Teng, Director Chung-Ming Tsao, Independent Director Jin-Sheng Luo, Independent Director Yu-Liang Lin, Independent Director Tza-Li Gung, CPA Bao-Lu Lee, Lawyer

1.Call the Meeting to Order

2.Chairman’s Address (omitted)

3.Report Items: (1).2020 Business Report (Please refer to Attachment 1). (2).Audit Committee’s Review Report (Please refer to Attachment 2). (3). Report of the issuing of Domestic Secured Convertible Corporate Bonds

Explanation: In order to repay the bank loans and strengthen the financial structure, the Company has issued NT$ 400,000,000 in total, and the number of issued sheets is 4000, NT$ 100,000 per denomination, which is issued at 101% of the face value. The 7th domestic secured convertible corporate bonds with an issue period of 5 years have been traded on the counter of securities firms since March 30, 2021.

(4) Report of the 2020 Employees and Directors Compensation

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Explanation: 1.The Company’s profits before tax for the year ended December 31, 2020 was NT$

114,959,557. According to Article 24 of the “Articles of Incorporation”:The Company proposes to distribute NT$ 7,818,000 (6.80%) as 2020 employees’ compensation and NT$ 2,233,000 (1.94%) as 2020 directors’ compensation.

2.The employees’ compensation will be paid in cash. 3.The Company may issue compensation to employees of an affiliated company. The

employees’ compensation shall be determined according to their job performance, overall contributions, or special achievements with the approval of the chairman.

4.Proposal Items: (1) Adoption of the 2020 Business Report and Financial Statements (including Consolidated

Financial Statements) (Proposed by the Board) Explanation: 1.The Company’s 2020 Financial Statements, including Balance Sheets, Statements of

Comprehensive Income, Statements of Changes in Equity, and Statements of Cash Flows, were audited by independent auditors, Chih-Yuan Chen and Ching-Cheng Yang, of Deloitte & Touche.

2.2020 Business Report, Independent Auditors’ Report, and the aforementioned Financial Statements are attached hereto as Attachments 1, 4 and 5.

Voting Results: Shares represented at the time of voting: 109,346,565

Voting Results* % of the total represented

share present

Votes in favor 107,200,571 Votes

98.03% ( 1,249,515 Votes)

Votes against 72,784 Votes

0.06% ( 72,784 Votes)

Votes invalid 0 Votes

0.00% ( 0 Votes)

Votes abstained 2,073,210 Votes

1.89% ( 1,811,210 Votes)

*including votes casted electronically (numbers in brackets) RESOLVED, that the 2020 Business Report and Financial Statements (including Consolidated Financial Statements) be and hereby were accepted as submitted. (2) Adoption of the Proposal for Distribution of 2020 Earnings (Proposed by the Board)

Explanation: 1.The earnings distribution proposal for year 2020 is as follows:

Edimax Technology Co., Ltd. Earnings Distribution Proposal for the Year 2020

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Unit: NT$ Items Total

Beginning period undistributed profits 0 Net profit after tax for the current period 104,251,351 Remeasurement of defined employee benefit plans to retained earnings

(16,615,789)

Adjusted retained earnings from investments accounted for using the equity method

(1,052,855)

The amount of undistributed profits 86,582,707 Setting aside 10% legal reserve (8,658,270) Setting aside special reserves (22,688,299) Profits available for distribution 55,236,138 Distribution Item

Cash Dividends (NT$ 0.29 per share)

54,890,978 End period of undistributed profits 345,160 Chairman: Guan-Sheng Renn Manger: Guan-Sheng Renn Accountant: Han-Shen Lee

2.The proposed earnings distribution of amount NT$ 54,890,978 is allocated from 2020

Earnings Available for Distribution. Each shareholder will be entitled to receive a cash dividend of NT$ 0.29 per share, calculate rounded down to the nearest one NT dollar, any amount under one NTD will be discarded. The remaining fraction will be incorporated into other non-operating income of the Company.

3.Upon the approval of the Annual Shareholders’ Meeting, it is proposed that the Chairman of Board of Directors will be authorized to resolve the ex-dividend date, payment date, and other relevant issues.

4.Should any change in the number of outstanding shares resulting from the buyback of share, transfer or cancellation of the treasury shares, the conversion of convertible bonds, or the exercise of employee stock options, the dividend ratio may need to be adjusted accordingly. It is proposed to fully authorize the chairman of Board of Directors to adjust the dividend to be distributed to each share and to proceed on the relevant matters.



share present


98.10% ( 1,322,299 Votes)


0.06% ( 74,786 Votes)

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0.00% ( 0 Votes)


1.82% ( 1,736,424 Votes)

*including votes casted electronically (numbers in brackets) RESOLVED, that the above proposal be and hereby was approved as proposed.

5.Discussion Items (1) Amendment to the “Rules and Procedures of Shareholder’ Meeting”, please proceed to

discuss. (Proposed by the Board) Explanation: 1.In order to comply with law and regulations and conform to the needs of commercial

practice, the company hereby proposes to amend the “Rules and Procedures of Shareholder’ Meeting”.

2.Please refer to Attachment 3 for details of the proposed amendments to the “Rules and Procedures of Shareholder’ Meeting”.



share present


98.04% ( 1,260,290 Votes)


0.06% ( 70,457 Votes)


0.00% ( 0 Votes)


1.88% ( 1,802,762 Votes)

*including votes casted electronically (numbers in brackets) RESOLVED, that the above proposal be and hereby was approved as proposed.

6.Motions: None.

7.Adjournment: Meeting ended at 9:17 am on the same day.

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Attachments Attachment 1

Business Report Dear shareholders, ladies and gentlemen,

Thank you for your support and encouragement to our Company for the past one year, the Company would like to report the business performance of year 2020 as follows:

I.Annual operating result of year 2020 ( )The results of the implementation of the business plan

Review year 2020, Edimax’ consolidated revenue was 6,313,382,000, consolidated operating profit 370,753,000, consolidated net profit 227,249,000. Consolidated net profit attributed to stockholders of the Company is 104,251,000, earning per share 0.56 dollar. The profit of the operating result is better than last year.

Edimax has been adopting the product strategy for enterprise and retail markets by 4S (Software, Solution, Service, Security) oriented in this few years, and build up cloud services, to create business opportunities of software and service; in business strategy, the Company continues to focus on 3H (High-priced, high value-added, high profit rate) strategy, the Company has explored the networking market for enterprises, and the resources was concentrated on the major customers, and WIFI 6/6E (802.11ax Solutions) . In addition, in view of the huge future business opportunities of the AI Internet of Things (AIOT), in addition to continued investment in development resources, the Company is more active in strategic investment, to combine with external expertise and cooperation, establish complete ecosystem and product lines to enhance overall competitiveness. In terms of product strategy of the telecommunications market, based on the advantages of existing broadband communication equipment, actively develop next generation of Broadband CPE, DPU MDU XGSPON and other products, the Company provides professional, customized, segmented and competitive products to meet the deployment requirements of various telecommunications and broadband service providers to customers, and thus allow users to enjoy higher quality services such as network connection, video and voice, and strive for more telecommunications and broadband service customers to expand the market and reduce customer concentration risk.

After readjusting the pace, Edimax Group's operation has gradually stabilized. In the future, the company's management team will continue to commit to innovative business models, enhance customer satisfaction and develop differentiated products, and continue to move towards a professional network communication giant. The Company maintains prudent and optimistic for future operating result and growth in all aspects.

( )Financial Revenue & Profitability Analysis

Item 2019 2020 Financial Structure Analysis

Debt-Asset Ratio (%) 61.36 59.98 Ratio of Long-term Capital to Property, Plant and Equipment (%) 175.65 198.71

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Item 2019 2020

Profitability Analysis

Return on Assets (%) 2.69 3.30 Return on Equity (%) 6.23 8.17 Income before Tax to Paid-in Capital (%) 12.56 14.77 Net Profit Margin (%) 2.80 3.60 Earnings per Share (NTD) 0.33 0.56

The operating result of Edimax Group in 2020 was better than last year. In addition, the subsidiary Comtrend Corporation became a listed company in the OTC and applied for cash capital increase for IPO (Initial Public Offering), so the cash increased, therefore, the total assets increased and the financial structure improved; and various profit indicators were also rise due to profitability increase.

( )Research and Development Status The products developed in year 2020 are listed as below Enterprise and Consumer Communication Equipments 1. Enterprise and Consumer Network Products Series

(1) WiFi 6 (IEEE 802.11ax) Products Series A. WiFi 6/6E Network Interface Card (NIC) B. WiFi 6/6E Mesh Roaming Range Extenders C. WiFi 6/6E Routers

(2) Enterprise WiFi 6 Products Series A. Fast Hopping AI Mesh WiFi Access Points for Enterprise B. WiFi 6/6E Access Points C. Outdoor 5G Industrial Routers D. Portable 5G Routers E. High Security Protection Cloud Management System for Enterprise

2. Hi-End Networks Switches Series for Enterprise (1)Intelligent Management and Backbone Networks Equipments Series

A.10G Intelligent Management Network Switches B. IEEE 10G, 100G Backbone Network Switches C. Network Security Management System for Enterprise

(2)Network Products for Enterprise A. Outdoor High Power 5GHz Bridges B. IEEE 2.5/5/10G Ethernet Switches/NIC

3. AIOT Products, Services and Others (1)IP Camera Series

A.High Definition IP Camera with Multi-level Security Key Protection for Enterprise

B. Hyperfocal Distance IP camera with Multi-Security Key Protection C. Integrated Network Camera, Cloud Recording Management System D. Wireless presentation projection products E. Image, Voice Recognition AI System

(2)Network Products Series for Smart City A.Next Generation Smart Monitoring Products for Air Pollution, Toxic Gas,

PM2.5, etc. B. Indoor Smart Monitoring Products for Air Pollution, Toxic Gas, PM2.5, etc.

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C. Smart Cloud Home Control Center for In-house Environmental Monitoring (3)Cloud Integration Systems Series

A.Video Streaming and Recording Cloud Management System with High Security Protection

B. AI Dongle C. Cross-Industry Integration Cloud Management System D.Analysis Integration Management System of app Advertisement,

Entertainment, Big Data, etc. Telecommunications business communication equipments 1. Home Networking Products Series

(1)Outdoor Industrial G.hn Wave 2 PLC Products Integrating LiFi Technology (2)Plastic Optical Fiber (POF) Switches Products Series (3)Smart Roaming Solution Crossing Multi Platforms. (4)Controlling household power line broadband equipment APP

2. Broadband Customer Premise Equipment (CPE) Series (1)GPON Network Gateway/IAD with WIFI 6 Feature (2)VDSL2+ 35b Broadband Routers with WIFI 6 Feature (3)G.fast Bonding Broadband Routers with WIFI 6 Feature

3. Fiber-optic Communication Solution Series (1)Indoor 8 Ports G.fast FTTdp DPU (2)4 Ports G.hn Wave 2 EOC (Ethernet over Coax) FTTdp DPU (3)5G to the distribution point multi-port G.fast Wave 2 solution (4)Multi-port G.hn Coax solution with feedback power supply FTTdp fiber to

distribution point II.Annual business plan outline of 2021

( )Operating strategy 1. For "EDIMAX" branding parts, the Company will extend the existing retail

channel to enter the enterprise users and industrial market, to strengthen the exploring opportunities in systems integrators, value-added service providers to strengthen product applications and provide overall solutions; in "COMTREND" banding company, the Company position itself as a leader in niche products, most of the customers that the Company cooperates with are large-scale telecom operators in various regions, which is of indicative significance. Once it becomes its supplier successfully, it can often be take the initiative to bring many business opportunities. COMTREND has established brand awareness in the telecommunications market. In addition to expanding cooperation with existing telecommunications companies, it also strives for more telecommunications customers and broadband service providers to expand the market and diversify customer concentration risks.

2. In ODM aspect, the Company will increase ODM key Japanese customers, cultivating large customer base, continue to explore SMB market in Northeast Asia and North America. According to the market demand, focus on niche products and actively approach the world's leading networking and telecommunications companies to win original design and manufacturing (ODM) business, and to reduce production and management costs by ODM productive economies of scale, improve manufacturing service capabilities; in conjunction with the company's

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strategy, introduce the integrated cloud management systems to serve customers to take AIOT business opportunities.

3. In product development, continue to invest in SMB and digital surveillance product lines development (Including wireless, POE S/W and IP CAM, etc.), Cloud computing products development, AIOT product development, Automobile 5G and TSN real-time network related products development and Cloud security system development, and pay close attention to AIOT and Automobile business opportunities, make strategic investment, and innovate business models. Concentrate on the evolution of Netcom products, and actively carry out strategic cooperation, speed up products development. In the telecommunications market, based on the advantages of existing optical communication access equipment, broadband customer premise equipment (CPE) and power line communication equipment,, actively expand the product lines, extending from copper to fiber applications related products, develop next generation Broadband CPE DPU MDU XGSPON and other products, as well as 5G mobile data network related product lines, providing customers with professional, customized, differential and competitive products to meet the various types of telecommunications and broadband service providers deployment needs, and to strive for more customers to expand the market and reduce customer concentration risk.

4. In terms of production efficiency, integrated deployment of Group resources, seeking the best manufacturing distribution of resources for different product type, on the one hand to expand production capacity utilization, create economies of scale, on the other hand, the low-level or low-margin products are appointed to the outsourcing of production in order to reduce production costs, and through collective bargaining, lower raw material costs, to enlarge group synergy.

( )The important marketing policy 1. Continue to strengthen supply chain management, improve supply quality,

reduce costs and shorten delivery time to improve overall operating performance. However, due to the ongoing impact of the COVID-19 epidemic and the CHINA-US trade war, the semiconductor industry and the supply and demand of raw materials are imbalanced. Although the Company has tried its best to reduce its impact on operations, it is due to the shortage of key components and the price increase that it drives. The price and lead-time effect are getting worse and may still impact on the company's operations this year.

2. Continued to enhance the production effectiveness, efficiency and quality, the introduction of automated production, intelligent manufacturing, to enhance manufacturing competitiveness.

3. Line with market changes, grasp Company 3H (High-priced, high value-added, high margin), 4S (Software, Solution, Service, Security) development strategy and direction, to provide customers with a competitive market solution to meet the various industry and customer needs.

III. The company's future development strategy In order to continue to maintain the stability and growth of both profit and

revenue, the Company still maintains its consistent development strategy as follows: ( ) Focus on the industry and grow steadily

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Do not make high-risk investments, and continue to strengthen business development, with stable profitability as the priority; and actively explore new markets, research and develop new product lines and diversify customers to reduce the impact of changes in the market environment on the Company.

( ) Continue to strengthen research and development Continue to invest heavily in R&D and strengthen the R&D strength of software

and hardware, continuously develop high-end and integrated products, and maintain a leading position in technology.

( ) Adhere to quality and reduce costs More stringent control over product quality and cost, reduce quality problems,

and enhance the company's profitability. ( )Strengthening operation management

The Company upholds the core values of integrity, quality, service, and innovation, and establishes long-term partnerships with customers, suppliers and employees. At the same time, it establishes a good corporate governance system and continuously improves management systems, continues to streamline processes, and improve efficiency, enhance the overall competitiveness of the Company.

IV. The Impacts from the external competitive environment, regulatory environment and the overall business environment

Due to the increasingly vigorous development of Internet applications, the number of users worldwide continues to raise, application apps and application scenarios continue to innovate. With the active promotion of telecom operators, enterprise network upgrades and retail brands, the demand for communication network products is increasing, resulting in Domestic and foreign manufacturers are rushing to enter this market, resulting in increasingly fierce market competition. This year, under the continuous impact of the Covid-19 epidemic and the CHINA-US trade war, the semiconductor industry and raw material supply and demand are imbalanced, resulting in shortages of key components, extended delivery periods, and higher cost of materials, which will affect the company's operations. The Company will do its best to reduce the impact.

The Company has a strong R&D, marketing and management team. For the future development direction, in addition to maintaining long-term cooperative relations with existing customers, it also actively explores the market with the goal of pursuing long-term stable growth of the Company. Finally, I would like to be on behalf of all directors to all shareholders of the Company,

send my sincere thanks to all shareholders, ladies and gentlemen and staff colleagues, for the contribution and efforts of development of the Company, and thank you for the encouragement and support to us, so the Company can continue prosperity and growth. Here, I wish you

Good health and good luck Chairman & General Manager Guan-Sheng Renn Accountant Han-Shen Lee

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Attachment 2

Edimax Technology Co., Ltd.

Audit Committee’s Review Report

The Board of Directors has prepared and submitted to us the Company’s 2020 Business

report, Financial Statements, and Proposal for Deficit Compensation. CPA Chih-Yuan Chen and Ching-Cheng Yang of Deloitte & Touche were retained to audit Financial Statements and have issued an audited report accordingly. We, as the Audit Committee of the Company, have reviewed the Business Report, Financial Statements, and Proposal for Deficit Compensation and do not find any discrepancies. According to Article 14-4 of the Securities and Exchange Act and Article 219 of the Company Act, we hereby submit this report.

2021 shareholder meeting of the company

Chairperson of the Audit Committee: Chung-Ming Tsao

March 23, 2021

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Attachment 3

Edimax Technology Co., Ltd. List of Amendments to the Rules and Procedures of Shareholders’ Meeting

Original Articles Amended Articles Remark Article 3 Unless otherwise provided by law or regulation, this Corporation's shareholders meetings shall be convened by the board of directors. This Corporation shall prepare electronic versions of the shareholders meeting notice and proxy forms, and the origins of and explanatory materials relating to all proposals, including proposals for ratification, matters for deliberation, or the election or dismissal of directors, and upload them to the Market Observation Post System (MOPS) before 30 days before the date of a regular shareholders meeting or before 15 days before the date of a special shareholders meeting. This Corporation shall prepare electronic versions of the shareholders meeting agenda and supplemental meeting materials and upload them to the MOPS before 21 days before the date of the regular shareholders meeting or before 15 days before the date of the special shareholders meeting. In addition, before 15 days before the date of the shareholders meeting, this Corporation shall also have prepared the shareholders meeting agenda and supplemental meeting materials and made them available for review by shareholders at any time. The meeting agenda and supplemental materials shall also be displayed at this Corporation and the professional shareholder services agent designated thereby as well as being distributed on-site at the meeting place. The reasons for convening a shareholders meeting shall be specified in the meeting notice and public announcement. With the consent of the addressee, the meeting notice

Article 3 Unless otherwise provided by law or regulation, this Corporation's shareholders meetings shall be convened by the board of directors. This Corporation shall prepare electronic versions of the shareholders meeting notice and proxy forms, and the origins of and explanatory materials relating to all proposals, including proposals for ratification, matters for deliberation, or the election or dismissal of directors, and upload them to the Market Observation Post System (MOPS) before 30 days before the date of a regular shareholders meeting or before 15 days before the date of a special shareholders meeting. This Corporation shall prepare electronic versions of the shareholders meeting agenda and supplemental meeting materials and upload them to the MOPS before 21 days before the date of the regular shareholders meeting or before 15 days before the date of the special shareholders meeting. In addition, before 15 days before the date of the shareholders meeting, this Corporation shall also have prepared the shareholders meeting agenda and supplemental meeting materials and made them available for review by shareholders at any time. The meeting agenda and supplemental materials shall also be displayed at this Corporation and the professional shareholder services agent designated thereby as well as being distributed on-site at the meeting place. The reasons for convening a shareholders meeting shall be specified in the meeting notice and public announcement. With the consent of the addressee, the meeting notice

Modify the article in accordance with the regulations.

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Original Articles Amended Articles Remark may be given in electronic form. Election or dismissal of directors, amendments to the articles of incorporation, reduction of capital, application for the approval of ceasing its status as a public company, approval of competing with the company by directors, surplus profit distributed in the form of new shares, reserve distributed in the form of new shares, the dissolution, merger, or demerger of the corporation, or any matter under Article 185, paragraph 1 of the Company Act shall be set out and the essential contents 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 corporation, and such website shall be indicated in the above notice. Where re-election of all directors as well as their inauguration date is stated in the notice of the reasons for convening the shareholders meeting, after the completion of the re-election in said meeting such inauguration date may not be altered by any extraordinary motion or otherwise in the same meeting. A shareholder holding one percent or more of the total number of issued shares may submit to this Corporation a proposal for discussion at a regular shareholders meeting. The number of items so proposed is limited to one only, and no proposal containing more than one item will be included in the meeting agenda. A shareholder may propose a recommendation for urging the corporation to promote public interests or fulfill its social responsibilities will be included in the meeting agenda. When the circumstances of

may be given in electronic form. Election or dismissal of directors, amendments to the articles of incorporation, reduction of capital, application for the approval of ceasing its status as a public company, approval of competing with the company by directors, surplus profit distributed in the form of new shares, reserve distributed in the form of new shares, the dissolution, merger, or demerger of the corporation, or any matter under Article 185, paragraph 1 of the Company Act, Articles 26-1 and 43-6 of the Securities Exchange Act, Articles 56-1 and 60-2 of the Regulations Governing the Offering and Issuance of Securities by Securities Issuers shall be set out and the essential contents explained in the notice of the reasons for convening the shareholders meeting. None of the above matters may be raised by an extraordinary motion. Where re-election of all directors as well as their inauguration date is stated in the notice of the reasons for convening the shareholders meeting, after the completion of the re-election in said meeting such inauguration date may not be altered by any extraordinary motion or otherwise in the same meeting. A shareholder holding one percent or more of the total number of issued shares may submit to this Corporation a proposal for discussion at a regular shareholders meeting. The number of items so proposed is limited to one only, and no proposal containing more than one item will be included in the meeting agenda. When the circumstances of any subparagraph of Article 172-1, paragraph 4 of the Company Act apply to a proposal put forward by a shareholder, the board of directors may exclude it from the agenda. A shareholder

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Original Articles Amended Articles Remark any subparagraph of Article 172-1, paragraph 4 of the Company Act apply to a proposal put forward by a shareholder, the board of directors may exclude it from the agenda. Prior to the book closure date before a regular shareholders meeting is held, this Corporation shall publicly announce its acceptance of shareholder proposals in writing or electronically, and the location and time period for their submission; the period for submission of shareholder proposals may not be less than 10 days. Shareholder-submitted proposals are limited to 300 words, and no proposal containing more than 300 words will be included in the meeting agenda. The shareholder making the proposal shall be present in person or by proxy at the regular shareholders meeting and take part in discussion of the proposal. Prior to the date for issuance of notice of a shareholders meeting, this Corporation shall inform the shareholders who submitted proposals of the proposal screening results, and shall list in the meeting notice the proposals that conform to the provisions of this article. At the shareholders meeting the board of directors shall explain the reasons for exclusion of any shareholder proposals not included in the agenda.

may propose a recommendation for urging the corporation to promote public interests or fulfill its social responsibilities, provided procedurally the number of items so proposed is limited only to one in accordance with Article 172-1 of the Company Act, and no proposal containing more than one item will be included in the meeting agenda. Prior to the book closure date before a regular shareholders meeting is held, this Corporation shall publicly announce its acceptance of shareholder proposals in writing or electronically, and the location and time period for their submission; the period for submission of shareholder proposals may not be less than 10 days. Shareholder-submitted proposals are limited to 300 words, and no proposal containing more than 300 words will be included in the meeting agenda. The shareholder making the proposal shall be present in person or by proxy at the regular shareholders meeting and take part in discussion of the proposal. Prior to the date for issuance of notice of a shareholders meeting, this Corporation shall inform the shareholders who submitted proposals of the proposal screening results, and shall list in the meeting notice the proposals that conform to the provisions of this article. At the shareholders meeting the board of directors shall explain the reasons for exclusion of any shareholder proposals not included in the agenda.

Article 9 Attendance at shareholders meetings shall be calculated based on numbers of shares. The number of shares in attendance shall be calculated according to the shares indicated by the attendance book and sign-in cards

Article 9 Attendance at shareholders meetings shall be calculated based on numbers of shares. The number of shares in attendance shall be calculated according to the shares indicated by the attendance book and sign-in cards

Modify the article in accordance with the regulations.

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Original Articles Amended Articles Remark handed in plus the number of shares whose voting rights are exercised by correspondence or electronically. The chair shall call the meeting to order at the appointed meeting time. However, when the attending shareholders do not represent a majority of the total number of issued shares, the chair may announce a postponement, provided that no more than two such postponements, for a combined total of no more than one hour, may be made. If the quorum is not met after two postponements and the attending shareholders still represent less than one third of the total number of issued shares, the chair shall declare the meeting adjourned. If the quorum is not met after two postponements as referred to in the preceding paragraph, but the attending shareholders represent one third or more of the total number of issued shares, a tentative resolution may be adopted pursuant to Article 175, paragraph 1 of the Company Act; all shareholders shall be notified of the tentative resolution and another shareholders meeting shall be convened within one month. When, prior to conclusion of the meeting, the attending shareholders represent a majority of the total number of issued shares, the chair may resubmit the tentative resolution for a vote by the shareholders meeting pursuant to Article 174 of the Company Act.

handed in plus the number of shares whose voting rights are exercised by correspondence or electronically. The chair shall call the meeting to order at the appointed meeting time and announce relevant information such as the number of non-voting rights and the number of shares present at the same time. However, when the attending shareholders do not represent a majority of the total number of issued shares, the chair may announce a postponement, provided that no more than two such postponements, for a combined total of no more than one hour, may be made. If the quorum is not met after two postponements and the attending shareholders still represent less than one third of the total number of issued shares, the chair shall declare the meeting adjourned. If the quorum is not met after two postponements as referred to in the preceding paragraph, but the attending shareholders represent one third or more of the total number of issued shares, a tentative resolution may be adopted pursuant to Article 175, paragraph 1 of the Company Act; all shareholders shall be notified of the tentative resolution and another shareholders meeting shall be convened within one month. When, prior to conclusion of the meeting, the attending shareholders represent a majority of the total number of issued shares, the chair may resubmit the tentative resolution for a vote by the shareholders meeting pursuant to Article 174 of the Company Act.

Article 14 The election of directors or supervisors at a shareholders meeting shall be held in accordance with the applicable election and

Article 14 The election of directors or supervisors at a shareholders meeting shall be held in accordance with the applicable election and

Modify the article in accordance with the

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Original Articles Amended Articles Remark appointment rules adopted by this Corporation, and the voting results shall be announced on-site immediately, including the names of those elected as directors and the numbers of votes with which they were elected. The ballots for the election referred to in the preceding paragraph shall be sealed with the signatures of the monitoring personnel and kept in proper custody for at least one year. If, however, a shareholder files a lawsuit pursuant to Article 189 of the Company Act, the ballots shall be retained until the conclusion of the litigation.

appointment rules adopted by this Corporation, and the voting results shall be announced on-site immediately, including the names of those elected as directors and the numbers of votes with which they were elected and the list of unelected directors and their obtained voting rights. The ballots for the election referred to in the preceding paragraph shall be sealed with the signatures of the monitoring personnel and kept in proper custody for at least one year. If, however, a shareholder files a lawsuit pursuant to Article 189 of the Company Act, the ballots shall be retained until the conclusion of the litigation.

regulations.

Article 20 These Rules were approved by the Annual General Shareholders’ Meeting and entered into force on June 30, 1998. ……………… Amended on June 12, 2020 for the fifth time.

Article 20 These Rules were approved by the Annual General Shareholders’ Meeting and entered into force on June 30, 1998. ……………… Amended on June 12, 2020 for the fifth time. Amended on July 30, 2021 for the sixth time.

Add the date of this Amendment.

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Attachment 4

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Edimax Technology Co., Ltd.

Opinion

We have audited the accompanying consolidated financial statements of Edimax Technology Co., Ltd. (the “Company”) and its subsidiaries (collectively referred to as the “Group”), which comprise the consolidated balance sheets as of December 31, 2020 and 2019, 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 (collectively referred to as the “consolidated financial statements”).

In our opinion, based on our audits and the reports of other auditors (please refer to the Other Matter paragraph), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2020 and 2019, 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 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 based on our audits and the reports of other auditors.

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 for the year ended December 31, 2020. 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.

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The key audit matters of the Group’s consolidated financial statements for the year ended December 31, 2020 is stated as follows:

Sales Revenue from the Group’s Major Customer

For the year ended December 31, 2020, the Group’s revenue amounted to $6,313,382 thousand, of which $2,113,818 thousand was generated from the top two customers. The revenue from the top two customers were material; thus, the sales revenue from the top two customers were deemed to be a key audit matter.

The main audit procedures we performed to address the above key audit matter were as follows:

1. We understood and tested the major customers' credit check process, sales prices and payment collection terms to ensure that the customers have been appropriately approved and checked against the relevant supporting information, which includes the results from the search for information related to those customers.

2. We selected samples from the major customers' sales transactions, inspected the relevant documents such as the original purchase orders and sales invoices and checked these against the relevant payment collection certificates after the reporting period to ensure the validity of occurrence of sales revenue.

3. We sent requests for confirmation of the customers' trade receivable balance at the end of the reporting period to ensure the accuracy of the trade receivables record.

4. We inspected subsequent transactions after the reporting period and checked whether there were any material sales returns and discounts for those customers.

Other Matter

We did not audit the financial statements of several subsidiaries included in the consolidated financial statements of the Group, but such statements were audited by other auditors. Our opinion, insofar as it relates to the amounts included for those subsidiaries, was based solely on the reports of other auditors. The total assets of those subsidiaries were $424,341 thousand and $414,274 thousand, which constituted 5.57% and 6.36% of consolidated total assets as of December 31, 2020 and 2019, respectively, and total revenues were $352,461 thousand and $509,495 thousand, which constituted 5.58% and 9.28% of consolidated total revenues for the years ended December 31, 2020 and 2019, respectively.

In addition, the financial statements of associates included in the consolidated financial statements were audited by other auditors. Thus, our opinion, insofar as it relates to the investments in associates accounted for using the equity method, the share of profit (loss) of the associates accounted for using the equity method, and the share of comprehensive income (loss) of the associates, was based solely on the reports of other auditors. Investments in associates accounted for using the equity method were $62,155 thousand and $55,706 thousand, which constituted 0.82% and 0.86% of consolidated total assets as of December 31, 2020 and 2019, respectively; the share of profit or loss of the associates was $27,313 thousand and $15,339 thousand, which constituted 9.78% and 6.55% of the consolidated profit before income tax for the years ended December 31, 2020 and 2019, respectively; and the share of the other comprehensive income of associates accounted for using the equity method was $23,301 thousand and $13,665 thousand, which constituted 12.01% and 11.80% of the consolidated total comprehensive income for the years ended December 31, 2020 and 2019, respectively.

We have also audited the parent company only financial statements of the Company as of and for the years ended December 31, 2020 and 2019 on which we have issued an unmodified opinion with other matter paragraph.

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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 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 members of 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:

1. 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.

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 Group’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 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.

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5. 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.

6. 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, 2020 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 Chih-Yuan Chen and Ching-Cheng Yang.

Deloitte & ToucheTaipei, TaiwanRepublic of China

March 23, 2021

Notice to Readers

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

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EDIMAX TECHNOLOGY CO., LTD. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETSDECEMBER 31, 2020 AND 2019(In Thousands of New Taiwan Dollars)

2020 2019ASSETS Amount % Amount %

CURRENT ASSETSCash and cash equivalents (Note 6) $ 2,070,594 27 $ 1,174,016 18Financial assets at amortized cost - current (Notes 8 and 31) 4,055 - 2,687 -Contract assets - current (Note 22) 1,420 - - -Notes receivable from unrelated parties (Note 9) 10,850 - 12,344 -Trade receivables from unrelated parties (Notes 9 and 22) 1,223,609 16 1,104,377 17Other receivables from unrelated parties (Notes 9 and 29) 5,254 - 17,587 -Other receivables from related parties (Note 30) 567 - 8,762 -Current tax assets (Note 24) 7,399 - 15,789 -Inventories (Note 10) 1,500,293 20 1,356,302 21Prepayments 74,911 1 70,835 1Other current assets (Notes 16 and 31) 28,998 1 24,310 1

Total current assets 4,927,950 65 3,787,009 58

NON-CURRENT ASSETSFinancial assets at fair value through other comprehensive income - non-current (Note 7) 63,530 1 58,042 1Financial assets at amortized cost - non-current (Notes 8 and 31) 905 - 868 -Investments accounted for using the equity method (Note 12) 62,155 1 55,706 1Property, plant and equipment (Notes 13, 17, 30 and 31) 2,317,465 30 2,331,321 36Right-of-use assets (Note 14) 111,694 2 137,819 2Intangible assets (Note 15) 29,188 - 29,159 -Deferred tax assets (Note 24) 21,744 - 33,000 1Refundable deposits 14,472 - 11,863 -Other financial assets - non-current (Note 16) 63,188 1 61,167 1Other non-current assets - - 9,200 -

Total non-current assets 2,684,341 35 2,728,145 42

TOTAL $ 7,612,291 100 $ 6,515,154 100

LIABILITIES AND EQUITY

CURRENT LIABILITIESShort-term borrowings (Notes 17, 31 and 32) $ 857,768 11 $ 767,128 12Short-term bills payable (Note 17) 29,934 - 29,967 1Contract liabilities - current (Note 22) 126,623 2 117,203 2Notes payable to unrelated parties 5,336 - 921 -Accounts payable to unrelated parties 1,299,408 17 871,696 13Accounts payable to related parties (Note 30) 132,662 2 154,170 2Other payables (Notes 18 and 30) 350,087 5 314,091 5Current tax liabilities (Note 24) 39,385 1 29,620 -Provisions - current (Note 19) 3,441 - - -Lease liabilities - current (Note 14) 32,611 - 33,512 1Current portion of long-term borrowings (Notes 17 and 31) 16,800 - 16,800 -Other current liabilities (Note 18) 113,226 2 85,161 1

Total current liabilities 3,007,281 40 2,420,269 37

NON-CURRENT LIABILITIESLong-term borrowings (Notes 17 and 31) 1,383,914 18 1,400,714 21Deferred tax liabilities (Note 24) 3,917 - 5,019 -Lease liabilities - non-current (Note 14) 79,868 1 105,113 2Net defined benefit liabilities - non-current (Note 20) 84,335 1 66,697 1Guarantee deposits received 6,680 - - -

Total non-current liabilities 1,558,714 20 1,577,543 24

Total liabilities 4,565,995 60 3,997,812 61

EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANYShare capital

Common stocks 1,864,916 25 1,864,916 29Capital collected in advance 27,492 - - -

Total share capital 1,892,408 25 1,864,916 29Capital surplus 228,100 3 168,621 2Retained earnings

Legal reserve 1,802 - - -Special reserve 16,214 - - -Unappropriated earnings 86,582 1 18,016 -

Total retained earnings 104,598 1 18,016 -Other equity

Exchange differences arising from translation to the presentation currency (33,468) - (21,625) -Unrealized gain/(loss) on financial assets at fair value through other comprehensive income (5,436) - (4,024) -

Total other equity (38,904) - (25,649) -Treasury shares (13,714) - (16,745) -

Total equity attributable to owners of the Company 2,172,488 29 2,009,159 31

NON-CONTROLLING INTERESTS 873,808 11 508,183 8

Total equity 3,046,296 40 2,517,342 39

TOTAL $ 7,612,291 100 $ 6,515,154 100

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

(With Deloitte & Touche auditors’ report dated March 23, 2021)

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEFOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019(In Thousands of New Taiwan Dollars, Except Earning Per Share)

2020 2019Amount % Amount %

OPERATING REVENUE (Notes 22 and 30) $ 6,313,382 100 $ 5,488,422 100

OPERATING COSTS (Notes 10, 23 and 30) (4,690,262) (74) (4,032,176) (74)

GROSS PROFIT 1,623,120 26 1,456,246 26

OPERATING EXPENSES (Notes 20, 23 and 30)Selling and marketing expenses (535,023) (8) (564,018) (10)General and administrative expenses (282,729) (5) (274,416) (5)Research and development expenses (413,325) (7) (426,652) (8)Expected credit loss (21,290) - (13,065) -

Total operating expenses (1,252,367) (20) (1,278,151) (23)

PROFIT FROM OPERATIONS 370,753 6 178,095 3

NON-OPERATING INCOME AND EXPENSESOther income (Note 23) 13,052 - 22,476 1Other gains and losses (Note 23) (108,525) (2) 43,920 1Finance costs (Note 23) (27,939) - (33,257) (1)Share of profit or loss of associates (Note 12) 27,313 1 15,339 -Interest income (Note 23) 4,761 - 7,735 -

Total non-operating income and expenses (91,338) (1) 56,213 1

PROFIT BEFORE INCOME TAX FROM CONTINUING OPERATIONS 279,415 5 234,308 4

INCOME TAX EXPENSE (Note 24) (52,166) (1) (80,368) (1)

NET PROFIT FOR THE YEAR 227,249 4 153,940 3

OTHER COMPREHENSIVE INCOMEItems that will not be reclassified subsequently to

profit or loss:Remeasurement of defined benefit plans (Note 20) (18,625) (1) (24,652) (1)Unrealized gain/(loss) on investments in equity

instruments at fair value through other comprehensive income (1,412) - 1,076 -

(Continued)

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMEFOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019(In Thousands of New Taiwan Dollars, Except Earning Per Share)


Income tax relating to items that will not be reclassified subsequently to profit or loss (Note 24) 265 - 563 -

Items that may be reclassified subsequently to profit or loss:Exchange differences on translating the financial

statements of foreign operations (13,406) - (15,156) -

Other comprehensive (loss) income for the year, net of income tax (33,178) (1) (38,169) (1)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR $ 194,071 3 $ 115,771 2

NET PROFIT ATTRIBUTABLE TO:Owners of the Company $ 104,251 2 $ 60,772 1Non-controlling interests 122,998 2 93,168 2

$ 227,249 4 $ 153,940 3

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:Owners of the Company $ 73,327 1 $ 26,594 -Non-controlling interests 120,744 2 89,177 2

$ 194,071 3 $ 115,771 2

EARNING PER SHARE (Note 25)Basic $ 0.56 $ 0.33Diluted $ 0.56 $ 0.33


(With Deloitte & Touche auditors’ report dated March 23, 2021) (Concluded)

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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITYFOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019(In Thousands of New Taiwan Dollars)

Equity Attributable to Owners of the Company (Note 21)Other Equity

Exchange

Unrealized Gain (Loss) on

Financial Assets Share Capital Differences on at Fair Value

Capital Retained Earnings Translating Through Other Non-controllingCollected Capital Unappropriated Foreign Comprehensive Treasury Interests

Common Stock in Advance Total Surplus Legal Reserve Special Reserve Earnings Total Operations Income Total Shares Total (Note 21) Total Equity

BALANCE AT JANUARY 1, 2019 $ 1,864,916 $ - $ 1,864,916 $ 162,547 $ - $ - $ (19,979) $ (19,979) $ (9,148) $ (5,100) $ (14,248) $ (20,211) $ 1,973,025 $ 447,595 $ 2,420,620

Disposal of the Company's common stocks by subsidiaries treated as treasury shares transactions - - - 951 - - - - - - - 3,466 4,417 6,165 10,582

Actual acquisition of interests in subsidiaries (Note 27) - - - 9 - - - - - - - - 9 (226) (217)

Recognition of employee share options by the subsidiaries (Note 26) - - - 1,734 - - - - - - - - 1,734 2,420 4,154

Other capital surplus changeShare-based payments (Note 26) - - - 3,380 - - - - - - - - 3,380 - 3,380

Net profit for the year ended December 31, 2019 - - - - - - 60,772 60,772 - - - - 60,772 93,168 153,940

Other comprehensive income (loss) for the year ended December 31, 2019, net of income tax - - - - - - (22,777) (22,777) (12,477) 1,076 (11,401) - (34,178) (3,991) (38,169)

Total comprehensive income (loss) for the year ended December 31, 2019 - - - - - - 37,995 37,995 (12,477) 1,076 (11,401) - 26,594 89,177 115,771

Non-controlling interests (Note 21) - - - - - - - - - - - - - (36,948) (36,948)

BALANCE AT DECEMBER 31, 2019 1,864,916 - 1,864,916 168,621 - - 18,016 18,016 (21,625) (4,024) (25,649) (16,745) 2,009,159 508,183 2,517,342

Appropriation of 2019 earningsLegal reserve - - - - 1,802 - (1,802) - - - - - - - -Special reserve - - - - - 16,214 (16,214) - - - - - - - -

Other capital surplus changeShare-based payments (Note 26) - - - 1,914 - - - - - - - - 1,914 - 1,914Cash dividends distributed by the Company - - - (27,974) - - - - - - - - (27,974) - (27,974)

Disposal of the Company's common stocks by subsidiaries treated as treasury shares transactions - - - 356 - - - - - - - 261 617 737 1,354

Actual acquisition of interests in subsidiaries (Note 27) - - - 14,714 - - - - - - - - 14,714 - 14,714

Changes in percentage of ownership interests in subsidiaries (Note 27) - - - 69,084 - - - - - - - - 69,084 - 69,084

Recognition of employee share options by the subsidiaries (Note 26) - - - 1,385 - - - - - - - - 1,385 1,616 3,001

Issuance of ordinary shares under employee share options - 27,492 27,492 - - - - - - - - - 27,492 - 27,492

Net profit for the year ended December 31, 2020 - - - - - - 104,251 104,251 - - - - 104,251 122,998 227,249

Other comprehensive income (loss) for the year ended December 31, 2020, net of income tax - - - - - - (17,669) (17,669) (11,843) (1,412) (13,255) - (30,924) (2,254) (33,178)

Total comprehensive income (loss) for the year ended December 31, 2020 - - - - - - 86,582 86,582 (11,843) (1,412) (13,255) - 73,327 120,744 194,071

Non-controlling interests (Note 21) - - - - - - - - - - - 2,770 2,770 242,528 245,298

BALANCE AT DECEMBER 31, 2020 $ 1,864,916 $ 27,492 $ 1,892,408 $ 228,100 $ 1,802 $ 16,214 $ 86,582 $ 104,598 $ (33,468) $ (5,436) $ (38,904) $ (13,714) $ 2,172,488 $ 873,808 $ 3,046,296



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CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019(In Thousands of New Taiwan Dollars)

2020 2019

CASH FLOWS FROM OPERATING ACTIVITIESIncome before income tax $ 279,415 $ 234,308Adjustments for:

Depreciation expenses 128,241 149,359Amortization expenses 5,292 7,705Expected credit loss recognized 21,290 13,065Finance costs 27,939 33,257Interest income (4,761) (7,735)Dividend income (1,054) (645)Share-based payment 4,915 7,534Share of profit of associates (27,313) (15,339)Loss (gain) on disposal of property, plant and equipment 118 (86,411)Net gain on disposal of financial assets (3,063) (46)Reversal of write-down of inventories (7,769) (1,143)Changes in operating assets and liabilities

Increase in contract assets (1,420) -Decrease in notes receivable 1,494 2,698(Increase)/decrease in trade receivables (140,301) 294,109Decrease in other receivables 12,333 7,459Decrease/(increase) in other receivables from related parties 8,195 (8,762)(Increase)/decrease in inventories (137,725) 541,671(Increase)/decrease in prepayment (4,076) 718(Increase)/decrease in other current assets (9,686) 6,776Increase/(decrease) in contract liabilities 9,420 (38,370)Increase/(decrease) in notes payables 4,415 (2,512)Increase/(decrease) in trade payables 406,204 (211,101)Increase/(decrease) in other payables 35,996 (122,304)Increase in provisions 3,441 -Increase/(decrease) in other current liabilities 28,065 (27,647)Increase in net defined benefit liabilities 17,638 12,941

Cash generated from operations 657,243 789,585Interest received 4,761 5,973Interest paid (27,972) (33,269)Income tax paid (42,217) (143,921)

Net cash generated from operating activities 591,815 618,368

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of financial assets at fair value through other comprehensive

income (6,900) (35,350)Purchase of financial assets measured at amortized cost (1,405) (633)Proceeds from financial assets measured at amortized cost - 1,765Purchase of financial assets at fair value through profit or loss (32,576) (20,000)Proceeds from financial assets at fair value through profit or loss 35,639 36,061Payments for property, plant and equipment (76,504) (52,096)

(Continued)

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CONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019(In Thousands of New Taiwan Dollars)

2020 2019

Proceeds from disposal of property, plant and equipment 542 101,473Increase in refundable deposits (2,609) -Decrease in refundable deposits - 5Payments for intangible assets (5,089) (6,333)Increase in other financial assets - (11,432)Decrease in other financial assets 2,979 -Increase in other non-current assets - (9,200)Decrease in other non-current assets 9,200 -Dividends received 1,054 645

Net cash (used in) generated from investing activities (75,669) 4,905

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from short-term borrowings 90,640 -Repayments of short-term borrowings - (240,190)Repayments of long-term borrowings (16,800) (16,800)Repayment of the principal portion of lease liabilities (36,439) (41,914)Increase in refundable deposits 6,680 -Decrease in refundable deposits - (60)Dividends paid to non-controlling interests (27,974) -Exercise the employee share option 27,492 -Proceeds from reissuance of treasury shares 1,354 10,582Acquisition of subsidiaries - (217)Disposal of interests in subsidiaries without a loss of control 29,406 -Dividends paid to owners of the Company (49,852) (36,948)Difference in non-controlling interests 349,543 -

Net cash generated from (used in) financing activities 374,050 (325,547)

EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE OF CASH HELD IN FOREIGN CURRENCIES 6,382 (3,510)

NET INCREASE IN CASH AND CASH EQUIVALENTS 896,578 294,216

CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR 1,174,016 879,800

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR $ 2,070,594 $ 1,174,016



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Attachment 5

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Edimax Technology Co., Ltd.

Opinion

We have audited the accompanying financial statements of Edimax Technology Co., Ltd. (the “Company”), which comprise the balance sheets as of December 31, 2020 and 2019 and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies (collectively referred to as the “financial statements”).

In our opinion, based on our audits and the reports of other auditors (please refer to the Other Matter paragraph), the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, 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 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 based on our audits and the reports of other auditors.

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 for the year ended December 31, 2020. 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.

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The key audit matters of the Company’s financial statements for the year ended December 31, 2020 is stated as follows:

Sales Revenue from the Company’s Major Customer

For the year ended December 31, 2020, the Company’s revenue amounted to NT$4,030,590 thousand, of which NT$1,166,857 thousand was generated from a single customer. The revenue from the significant single customer was material; thus, the sales revenue from the single customer was deemed to be a key audit matter.

The main audit procedures we performed to address the above key audit matter were as follows:

1. We understood and tested the major customer's credit check process, sales prices and payment collection terms to ensure that the customer has been appropriately approved and checked against the relevant supporting information, which includes the results from the search for information related to this customer.

2. We selected samples from the major customer’s sales transactions, inspected the relevant documents such as the original purchase orders and sales invoices and checked these against the relevant payment collection certificates after the reporting period to ensure the validity of occurrence of sales revenue.

3. We sent requests for confirmation of the customer’s trade receivable balance at the end of the reporting period to ensure the accuracy of the trade receivables record.

4. We inspected subsequent transactions after the reporting period and checked whether there were any material sales returns and discounts for this customer.

Other Matter

As disclosed in Note 10 to the financial statements, we did not audit the financial statements of several investees accounted for using the equity method included in the financial statements of the Company, but such statement were audited by other auditors. Our opinion, insofar as it relates to the investments in investees accounted for using the equity method and the share of profit (loss) of the investees accounted for using the equity method included for those investees accounted for using the equity method, was based solely on the reports of other auditors. The total investments in investees accounted for using the equity method were NT$310,705 thousand and NT$321,310 thousand, which constituted 5.65% and 6.57% of total assets as of December 31, 2020 and 2019, respectively, and the share of profit (loss) of the investees’ subsidiaries and associates accounted for using the equity method were NT$34,796 thousand and NT$78,313 thousand, which constituted 33.17% and 128.86% of the profit before income tax for the years ended December 31, 2020 and 2019, respectively; and the share of the other comprehensive income of the investees’ subsidiaries and associates accounted for using the equity method were NT$27,589 thousand and NT$70,469 thousand, which constituted 37.62% and 264.98% of the total comprehensive income for the years ended December 31, 2020 and 2019, 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.

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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 members of the 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. 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.

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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, 2020 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 Chih-Yuan Chen and Ching-Cheng Yang.

Deloitte & ToucheTaipei, TaiwanRepublic of China

March 23, 2021

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.

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EDIMAX TECHNOLOGY CO., LTD.

BALANCE SHEETSDECEMBER 31, 2020 AND 2019(In Thousands of New Taiwan Dollars)

2020 2019ASSETS Amount % Amount %

CURRENT ASSETSCash (Note 6) $ 639,548 12 $ 502,808 10Notes receivable from unrelated parties (Note 8) 9,911 - 10,071 -Trade receivables from unrelated parties (Notes 8 and 20) 780,947 14 591,249 12Trade receivables from related parties (Notes 20 and 28) 188,470 3 200,963 4Other receivables from unrelated parties (Notes 8 and 28) 6,990 - 12,235 -Current tax assets (Note 22) 30 - 322 -Inventories (Note 9) 598,656 11 405,232 9Prepayments 38,113 1 32,620 1Other current assets 18,156 - 12,386 -

Total current assets 2,280,821 41 1,767,886 36

NON-CURRENT ASSETSFinancial assets at fair value through other comprehensive income - non-current (Notes 7 and 27) 63,530 1 58,042 1Investments accounted for using the equity method (Note 10) 961,213 18 848,945 18Property, plant and equipment (Notes 11 and 29) 2,072,389 38 2,086,724 43Right-of-use assets (Note 12) 62 - 525 -Investment properties (Note 13) 50,504 1 51,481 1Intangible assets (Note 14) 4,402 - 3,339 -Refundable deposits 3,552 - 525 -Other financial assets - non-current (Note 15) 62,788 1 60,767 1Other non-current assets - - 9,200 -

Total non-current assets 3,218,440 59 3,119,548 64

TOTAL $ 5,499,261 100 $ 4,887,434 100

LIABILITIES AND EQUITY

CURRENT LIABILITIESShort-term borrowings (Note 16) $ 817,600 15 $ 727,600 15Short-term bills payable (Note 16) 29,934 1 29,967 1Contract liabilities - current (Note 20) 95,103 2 92,592 2Notes payable to unrelated parties 5,305 - 914 -Accounts payable to unrelated parties 564,138 10 286,108 6Accounts payable to related parties (Note 28) 105,838 2 85,499 2Other payables (Notes 17 and 28) 138,708 2 112,868 2Current tax liabilities 657 - - -Lease liabilities - current (Note 12) 62 - 464 -Current portion of long-term borrowings (Notes 16 and 29) 16,800 - 16,800 -Other current liabilities (Note 17) 88,217 2 69,006 1

Total current liabilities 1,862,362 34 1,421,818 29

NON-CURRENT LIABILITIESLong-term borrowings (Notes 16 and 29) 1,383,914 25 1,400,714 29Deferred tax liabilities (Note 22) 722 - 722 -Lease liabilities - non-current (Note 12) - - 63 -Deposits received 6,679 - - -Net defined benefit liabilities - non-current (Note 18) 73,096 1 54,958 1

Total non-current liabilities 1,464,411 26 1,456,457 30

Total liabilities 3,326,773 60 2,878,275 59

EQUITYShare capital

Common stocks 1,864,916 34 1,864,916 38Capital collected in advance 27,492 1 - -

Total share capital 1,892,408 35 1,864,916 38Capital surplus 228,100 4 168,621 3Retained earnings

Legal reserve 1,802 - - -Special reserve 16,214 - - -Unappropriated earnings 86,582 2 18,016 -

Total retained earnings 104,598 2 18,016 -Other equity

Exchange differences arising from translation to the presentation currency (33,468) (1) (21,625) -Unrealized gain/(loss) on financial assets at fair value through other comprehensive income (5,436) - (4,024) -

Total other equity (38,904) (1) (25,649) -Treasury shares (13,714) - (16,745) -

Total equity 2,172,488 40 2,009,159 41

TOTAL $ 5,499,261 100 $ 4,887,434 100

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


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STATEMENTS OF COMPREHENSIVE INCOMEFOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019(In Thousands of New Taiwan Dollars, Except Earning Per Share)


OPERATING REVENUE (Notes 20 and 28) $ 4,030,590 100 $ 3,509,785 100

OPERATING COSTS (Notes 9, 21 and 28) (3,422,359) (85) (2,932,848) (84)

GROSS PROFIT 608,231 15 576,937 16

UNREALIZED GAIN ON TRANSACTIONS WITH SUBSIDIARIES (16,175) - (16,109) -

REALIZED GAIN ON TRANSACTIONS WITH SUBSIDIARIES 16,109 - 20,508 1

REALIZED GROSS PROFIT 608,165 15 581,336 17

OPERATING EXPENSES (Notes 18 and 21)Selling and marketing expenses (162,283) (4) (165,008) (5)General and administrative expenses (111,036) (3) (111,806) (3)Research and development expenses (261,907) (6) (275,926) (8)Expected credit loss (Note 8) (17,325) - (11,307) -

Total operating expenses (552,551) (13) (564,047) (16)

PROFIT FROM OPERATIONS 55,614 2 17,289 1

NON-OPERATING INCOME AND EXPENSESOther income (Notes 21 and 28) 6,812 - 11,820 -Other gains and losses (Note 21) (71,201) (2) (6,257) -Finance costs (Note 21) (25,503) (1) (29,509) (1)Share of profit or loss of associates (Note 10) 138,502 4 65,256 2Interest income (Note 21) 684 - 2,173 -

Total non-operating income and expenses 49,294 1 43,483 1

PROFIT BEFORE INCOME TAX FROM CONTINUING OPERATIONS 104,908 3 60,772 2

INCOME TAX EXPENSE (Note 22) (657) - - -

NET PROFIT FOR THE YEAR 104,251 3 60,772 2

OTHER COMPREHENSIVE INCOME(Continued)

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STATEMENTS OF COMPREHENSIVE INCOMEFOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019(In Thousands of New Taiwan Dollars, Except Earning Per Share)


Items that will not be reclassified subsequently to profit or loss:Remeasurement of defined benefit plans (Note 18) (16,616) (1) (20,548) (1)Unrealized gain/(loss) on investments in equity

instruments at fair value through other comprehensive income (1,412) - 1,076 -

Share of the other comprehensive loss of associates accounted for using the equity method (1,053) - (2,229) -

Items that may be reclassified subsequently to profit or loss:Exchange differences on translating the financial

statements of foreign operations (11,843) - (12,477) -

Other comprehensive (loss) income for the year, net of income tax (30,924) (1) (34,178) (1)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR $ 73,327 2 $ 26,594 1

EARNING PER SHARE (Note 23)Basic $ 0.56 $ 0.33Diluted $ 0.56 $ 0.33



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STATEMENTS OF CHANGES IN EQUITYFOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019(In Thousands of New Taiwan Dollars)

Other EquityUnrealized

Gain (Loss) onRetained Earnings (Accumulated Deficits) (Note 19) Exchange Financial Assets

Unappropriated Differences on at Fair ValueShare Capital (Note 19) Earnings Translating Through Other

Capital Collected Capital Surplus (Accumulated Foreign Comprehensive Treasury Common Stock in Advance Total (Note 19) Legal Reserve Special Reserve Deficits) Total Operations Income Total Shares Total Equity

BALANCE AT JANUARY 1, 2019 $ 1,864,916 $ - $ 1,864,916 $ 162,547 $ - $ - $ (19,979) $ (19,979) $ (9,148) $ (5,100) $ (14,248) $ (20,211) $ 1,973,025

Disposal of the Company's common stocks by subsidiaries treated as treasury shares transactions - - - 951 - - - - - - - 3,466 4,417

Recognition of employee share options by the subsidiaries - - - 1,734 - - - - - - - - 1,734

Actual disposals of interests in subsidiaries (Note 25) - - - 9 - - - - - - - - 9

Other capital surplus changeShare-based payments (Note 24) - - - 3,380 - - - - - - - - 3,380

Net profit for the year ended December 31, 2019 - - - - - - 60,772 60,772 - - - - 60,772

Other comprehensive income (loss) for the year ended December 31, 2019, net of income tax - - - - - - (22,777) (22,777) (12,477) 1,076 (11,401) - (34,178)

Total comprehensive income (loss) for the year ended December 31, 2019 - - - - - - 37,995 37,995 (12,477) 1,076 (11,401) - 26,594

BALANCE AT DECEMBER 31, 2019 1,864,916 - 1,864,916 168,621 - - 18,016 18,016 (21,625) (4,024) (25,649) (16,745) 2,009,159

Appropriation of 2019 earningsLegal reserve - - - - 1,802 - (1,802) - - - - - -Special reserve - - - - - 16,214 (16,214) - - - - - -

Other capital surplus changeShare-based payments (Note 24) - - - 1,914 - - - - - - - - 1,914Cash dividends distributed by the Company - - - (27,974) - - - - - - - - (27,974)

Actual acquisition of interests in subsidiaries (Note 25) - - - 14,714 - - - - - - - - 14,714

Changes in percentage of ownership interests in subsidiaries (Note 25) - - - 69,084 - - - - - - - - 69,084

Disposal of the Company's common stocks by subsidiaries treated as treasury shares transactions - - - 356 - - - - - - - 3,031 3,387

Recognition of employee share options by the subsidiaries - - - 1,385 - - - - - - - - 1,385

Issuance of ordinary shares under employee share options - 27,492 27,492 - - - - - - - - - 27,492

Net profit for the year ended December 31, 2020 - - - - - - 104,251 104,251 - - - - 104,251

Other comprehensive income (loss) for the year ended December 31, 2020, net of income tax - - - - - - (17,669) (17,669) (11,843) (1,412) (13,255) - (30,924)

Total comprehensive income (loss) for the year ended December 31, 2020 - - - - - - 86,582 86,582 (11,843) (1,412) (13,255) - 73,327

BALANCE AT DECEMBER 31, 2020 $ 1,864,916 $ 27,492 $ 1,892,408 $ 228,100 $ 1,802 $ 16,214 $ 86,582 $ 104,598 $ (33,468) $ (5,436) $ (38,904) $ (13,714) $ 2,172,488



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STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019(In Thousands of New Taiwan Dollars)

2020 2019

CASH FLOWS FROM OPERATING ACTIVITIESIncome before income tax $ 104,908 $ 60,772Adjustments for:

Depreciation expenses 41,975 44,649Amortization expenses 3,875 5,387Expected credit loss recognized 17,325 11,307Finance costs 25,503 29,509Interest income (684) (2,173)Dividend income (415) (645)Share-based payment 1,914 3,380Share of profit of subsidiaries and associates (138,502) (65,256)

Loss (gain)on disposal of property, plant and equipment 118 (89)Unrealized gain on transactions with subsidiaries 16,175 16,109Realized gain on transactions with subsidiaries (16,109) (20,508)Changes in operating assets and liabilities

Decrease in notes receivable 160 4,136(Increase)/decrease in trade receivables (194,530) 289,150Decrease in other receivables 5,245 167(Increase)/decrease in inventories (193,424) 89,276Increase in prepayment (5,493) (201)(Increase)/decrease in other current assets (5,770) 2,292Increase in contract liabilities 2,511 26,172Increase/(decrease) in notes payables 4,391 (2,280)Increase/(decrease) in trade payables 298,369 (27,912)Increase/(decrease) in other payables 25,840 (11,813)Increase/(decrease) in other current liabilities 19,211 (7,495)Increase/(decrease) in net defined benefit liabilities 1,521 (10,714)

Cash generated from operations 14,114 433,220Interest received 684 2,173Interest paid (25,531) (29,516)Income tax paid 292 (234)

Net cash (used in) generated from operating activities (10,441) 405,643

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of financial assets at fair value through other comprehensive

income (6,900) (35,350)Payments for property, plant and equipment (26,321) (24,709)Proceeds from disposal of property, plant and equipment 3 837Increase in refundable deposits (3,027) -Decrease in refundable deposits - 130Payments for intangible assets (4,938) (5,124)Increase in other financial assets (2,021) (6,038)Increase in other non-current assets - (9,200)Decrease in other non-current assets 9,200 -

(Continued)

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STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019(In Thousands of New Taiwan Dollars)

2020 2019

Dividends received 72,852 57,266

Net cash generated from (used in) investing activities 38,848 (22,188)

CASH FLOWS FROM FINANCING ACTIVITIESProceeds from short-term borrowings 90,000 -Repayments of short-term borrowings - (170,000)Repayments of long-term borrowings (16,800) (16,800)Increase in guarantee deposits 6,679 -Repayment of the principal portion of lease liabilities (470) (425)Dividends paid to owners of the Company (27,974) -Exercise of employee share options 27,492 -Acquisition of subsidiaries - (217)Partial disposal of interests in subsidiaries without a loss of control 29,406 -

Net cash generated from (used in) financing activities 108,333 (187,442)

NET INCREASE IN CASH 136,740 196,013

CASH AT THE BEGINNING OF THE YEAR 502,808 306,795

CASH AT THE END OF THE YEAR $ 639,548 $ 502,808



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Edimax Technology Co., Ltd. 2021Annual Shareholders