Bonds Payable

12 Months Ended

Dec. 31, 2022

21.	BONDS PAYABLE


	December 31
	2021		2022
	NT$		NT$		US$ (Note 4)

Unsecured domestic bonds
Repayable at maturity in January 2023 and interest due annually with annual interest rate at 1.50%	$	2,000,000	$	2,000,000	$	65,083
Repayable at maturity in January 2024 and interest due annually with annual interest rate at 1.45%		4,300,000		4,300,000		139,928
Repayable at maturity in April 2024 and interest due annually with annual interest rate at 0.90%		6,500,000		6,500,000		211,520
Repayable at maturity in April 2026 and interest due annually with annual interest rate at 1.03%		3,500,000		3,500,000		113,895
Repayable at maturity in April 2025 and interest due annually with annual interest rate at 0.90%		10,000,000		10,000,000		325,415
Repayable at maturity in August 2023 and interest due annually with annual interest rate at 0.72%		3,000,000		3,000,000		97,624
Repayable at maturity in August 2025 and interest due annually with annual interest rate at 0.85%		5,000,000		5,000,000		162,707
Repayable at maturity in August 2027 and interest due annually with annual interest rate at 0.95%		2,000,000		2,000,000		65,083
Redeemed in January 2022 and interest due annually with annual interest rate at 1.25%		3,700,000		—		—
Unsecured overseas bonds
US$200,000 thousand (linked to New Taiwan dollar), redeemed in September 2022 and interest due quarterly with annual interest rate at 2.15%		6,204,800		—		—
US$100,000 thousand (linked to New Taiwan dollar), repayable at maturity in October 2024 and interest due quarterly with annual interest rate at 2.50%		3,102,400		3,102,400		100,957
Unsecured overseas convertible bonds
RMB779,801 thousand and RMB2,005,324 thousand as of December 31, 2021 and 2022, respectively, at maturity in March 2027 and interest due annually with annual interest rate at 0.10%, 0.20%, 0.60%, 1.30%, 1.80% and 2.00% for the first, second, third, fourth, fifth and sixth year, respectively.		3,385,381		8,842,360		287,744

		52,692,581		48,244,760		1,569,956


	December 31
	2021		2022
	NT$		NT$		US$ (Note 4)

Less: discounts on bonds payable	$	425,244	$	394,436	$	12,835

		52,267,337		47,850,324		1,557,121
Less: current portion of bonds payable		9,902,710		4,998,971		162,674


	$	42,364,627	$	42,851,353	$	1,394,447

In March 2021, the subsidiary, USISH, offered an unsecured overseas convertible bonds (the “USISH Bonds”) in RMB3,450,000 thousand with

par value of RMB100. Within 5 trading days after maturity, USISH will redeem all the unconverted bonds at a price of 108% of the par value (including the interests of the last installation).

When the USISH Bonds were offered, the subsidiaries, USIE and ASE (Shanghai) Inc., subscribed for the USISH Bonds at a total of RMB

2,670,199

thousand. Since then, USIE and ASE (Shanghai) Inc. disposed separately the USISH Bonds totaled to

RMB1,197,194 thousand and RMB28,397 thousand in the public market, respectively. As of December 31, 2022, the

par

value of the USISH Bonds held by USIE amounted to RMB1,444,608

thousand. As the aforementioned contractual obligations assumed by USISH and the contractual rights entitled to USIE and ASE (Shanghai) Inc. were extinguished in economic substance, the assets and liabilities related to the USISH Bonds subscribed for by USIE and ASE (Shanghai) Inc. were eliminated upon the consolidation.

Each holder of the USISH Bonds has the right to convert the USISH Bonds into ordinary shares of USISH at the conversion price at any time from the first trading day after 9 months of the offering date to the maturity date (the “Conversion Period”). The initial conversion price was RMB20.25 per share at offering date and the conversion price will be subject to the adjustment in the event of the conversion provisions due to anti-dilution clause. As of December 31, 2022, the conversion price was RMB19.50

per share.

As of December 31, 2022, the USISH Bonds with a par value totaled to RMB68 thousand were converted into 3,000 ordinary shares of USISH. Within the outstanding period of the USISH Bonds, if the closing price of USISH’s ordinary shares in Shanghai Stock Exchange is lower than 80% of the current conversion price for at least 15 trading days out of any 30 consecutive trading days, the board of directors of USISH has the right to propose a downward revision on conversion price and submit it to USISH’s shareholders’ meeting for approval.

During the Conversion Period, USISH’s board of directors has the right to redeem all or part of the unconverted bonds at the price of par value plus accrued interests in either of the following circumstances: (1) if the closing price of USISH’s ordinary shares in Shanghai Stock Exchange is not less

than

130% (including 130%) of the current conversion price for at least 20 trading days out of any 30 consecutive trading days, or (2) the unconverted USISH Bonds falls below RMB30,000 thousand.

In the last two interest accrual years before the maturity, the holders of USISH Bonds have the right to sell back all or part of USISH Bonds to USISH at the price of par value plus accrued interest in either of the following circumstances: (1) if the closing price of USISH’s ordinary shares in Shanghai Stock Exchange is lower than 70% of the current conversion price in any 30 consecutive trading days, or (2) if USISH is deemed to change the use of the funds pursuant to the relevant regulations of the China Securities Regulatory Commission or USISH is identified by the China Securities Regulatory Commission as changing the use of funds before the maturity. In addition, after 3 years from the offering date, holders of USISH Bonds have the right to sell back all or part of USISH Bonds to USISH at 102% of the par value (including the interests accrued for the 3rd year).

At the offering date, USISH Bonds consisted of debt host contract (recognized under the line item of bonds payable), conversion right (recognized under the line item of

non-controlling

interests since it is an equity component of the bonds offered by the subsidiary), call option and put option (recognized under the line item of financial liabilities at FVTPL).