
	December 31
	2020		2021
	NT$		NT$		US$ (Note 4)

At amortized cost
Gross carrying amount	$	91,304,934	$	109,473,101	$	3,946,399
Less: Allowance for impairment loss		97,358		103,353		3,726

		91,207,576		109,369,478		3,942,673
At FVTOCI		626,413		6,092,462		219,627


	$	91,833,989	$	115,462,210	$	4,162,300

Trade receivables

At amortized cost

The Group’s average credit terms granted to the customers were 30 to 90 days. The Group evaluates the risk and probability of credit loss of trade receivables by reference to the Group’s past experiences, financial condition of each customer, impact of

COVID-19,

as well as competitive advantage and future development of the industry in which the customer operates. The Group then reviews the recoverable amount of each individual trade receivable at each balance sheet date to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, management believes the Group’s credit risk was significantly reduced.

The Group measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecast direction of economic conditions at each balance sheet date. As the Group’s historical credit loss experience shows significantly different loss patterns for different customer segments, the provision matrix for expected credit loss allowance based on trade receivables due status is further distinguished according to the Group’s different customer base.

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

The following table details the loss allowance of trade receivables based on the Group’s provision matrix.


		December 31, 2020


	Not Past Due			Overdue 1 to 30 days			Overdue 31 to 90 Days			Overdue Over 91 Days			Individually Impaired			Total
	NT$			NT$			NT$			NT$			NT$			NT$

Expected credit loss rate		0%			0%-10%			0%-70%			1%-100%			50%-100%

Gross carrying amount	$	86,820,792		$	3,823,249		$	557,487		$	92,873		$	10,533		$	91,304,934
Loss allowance (Lifetime ECLs)		(18,911	)		(2,053	)		(20,629	)		(45,232	)		(10,533	)		(97,358	)



	$	86,801,881		$	3,821,196		$	536,858		$	47,641		$	—		$	91,207,576


December 31, 2021
	Not Past Due			Overdue 1 to 30 days			Overdue 31 to 90 Days			Overdue Over 91 Days			Individually Impaired			Total
	NT$			NT$			NT$			NT$			NT$			NT$

Expected credit loss rate		0%			0%-10%			0%-70%			1%-100%			0%-100%

Gross carrying amount	$	105,538,390		$	3,136,438		$	609,695		$	99,118		$	89,460		$	109,473,101
Loss allowance (Lifetime ECLs)		(18,062	)		(1,811	)		(22,785	)		(46,337	)		(14,358	)		(103,353	)


	$	105,520,328		$	3,134,627		$	586,910		$	52,781		$	75,102		$	109,369,748

The movements of the loss allowance of trade receivables were as f

llows:


	December 31
	2019			2020			2021
	NT$			NT$			NT$			US$ (Note 4)

Balance at January 1	$	155,389		$	136,497		$	97,358		$	3,510
Net remeasurement of loss allowance		(38,277	)		(55,742	)		17,078			616
Reclassification		(5,877	)		(6,970	)		—			—
Acquisition through business combinations		25,553			32,460			—			—
Amounts written off		—			(3,944	)		(399	)		(14	)
Disposal of subsidiaries		—			—			(4,637	)		(167	)
Effects of foreign currency exchange differences		(291	)		(4,943	)		(6,047	)		(219	)


Balance at December 31	$	136,497		$	97,358		$	103,353		$	3,726

At FVTOCI

For the trade receivables due from certain customers, the Group decides whether or not to factor these trade receivables to banks without recourse based on the Group’s demand of working capital. These trade receivables are classified as at FVTOCI because they are held within a business model whose objective is achieved by both the

collection

of contractual cash flows and the selling of financial assets.

The following table details the loss allowance of trade receivables at FVTOCI based on the Group’s provision matrix.


December 31, 2020
	Not Past Due		Overdue 1 to 30 days		Overdue 31 to 90 Days		Overdue Over 91 Days		Individually Impaired		Total
	NT$		NT$		NT$		NT$		NT$		NT$

Expected credit loss rate		0%		0%		0%		—		—

Gross carrying amount	$	613,968	$	9,874	$	2,571	$	—	$	—	$	626,413
Loss allowance (Lifetime ECLs)		—		—		—		—		—		—


	$	613,968	$	9,874	$	2,571	$	—	$	—	$	626,413


December 31, 2021

	Not Past Due		Overdue 1 to 30 days		Overdue 31 to 90 Days		Overdue Over 91 Days		Individually Impaired		Total
	NT$		NT$		NT$		NT$		NT$		NT$

Expected credit loss rate		0%		0%		0%		0%		0%

Gross carrying amount	$	5,991,543	$	9,415	$	91,493	$	11	$	—	$	6,092,462
Loss allowance (Lifetime ECLs)		—		—		—		—		—		—


	$	5,991,543	$	9,415	$	91,493	$	11	$	—	$	6,092,462


	Not Past Due		Overdue 1 to 30 days		Overdue 31 to 90 Days		Overdue Over 91 Days		Individually Impaired		Total
	US$ (Note 4)		US$ (Note 4)		US$ (Note 4)		US$ (Note 4)		US$ (Note 4)		US$ (Note 4)

Expected credit loss rate		0%		0%		0%		0%		0%

Gross carrying amount	$	215,989	$	340	$	3,298	$	0	$	—	$	219,627
Loss allowance (Lifetime ECLs)		—		—		—		—		—		—


	$	215,989	$	340	$	3,298	$	0	$	—	$	219,627

At FVTPL

Some of the Group’s subsidiaries sell all of their trade receivables to banks without recourse. The sale will result in the derecognition of these trade receivables because the Group’s subsidiaries will transfer substantially all risks and rewards to banks. These trade receivables are measured at FVTPL because the objective of the subsidiary’ business model is neither held to collect contractual cash flows nor held both

collect contractual cash flows and to sell financial assets. As of December 31, 2020 and 2021, the trade receivables at FVTPL were all factored to banks without recourse.

Transfers of financial assets

The

ollowing

were

the

Group’s outstanding trade receivables transferred but not yet due were as follows:


Counterparty	Receivables Factoring Proceed		Reclassified to Other Receivables		Advances Received- Unused		Advances Received- Used		Annual Interest Rates on Advances Received (%)

December 31, 2020

BNP Paribas	EUR	16,691	EUR	15,315	EUR	14,481	EUR	1,376		0.80
HSBC	EUR	6,773	EUR	6,456	EUR	5,779	EUR	317		1.45
Citibank Taiwan Ltd.	US$	94,471	US$	—	US$	—	US$	94,471		0.84-0.95
Standard Chartered Bank	US$	53,800	US$	—	US$	—	US$	53,800		0.91
First Commercial Bank	NT$	6,879	NT$	—	NT$	—	NT$	6,879		1.95

December 31, 2021

BNP Paribas	EUR	12,115	EUR	12,081	EUR	11,475	EUR	34		0.80
First Commercial Bank	NT$	8,565	NT$	—	NT$	—	NT$	8,565		1.95

Pursuant to the factoring agreements, losses from commercial disputes (such as sales returns and discounts) are borne by the Group, while losses from credit risk are borne by banks. As of December 31, 2020 and 2021, the Group’s issued promissory notes with aggregate amounts of

US$2,000

thousand to Citibank Taiwan Ltd. to compensate losses from commercial disputes. As of the date that the consolidated financial statements were authorized for issue by the management, the Group did not have a material commercial dispute and also expected to have no material commercial dispute in the foreseeable future.