ACC - Audit Report / Information 2021

Asia Cement Corporation and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2021 and 2020 and Independent Auditors’ Report

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

The companies required to be included in the consolidated financial statements of affiliates in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” for the year ended December 31, 2021 are all the same as the companies required to be included in the consolidated financial statements of parent and subsidiary companies as provided in International Financial Reporting Standard 10 “Consolidated Financial Statements”. Relevant information that should be disclosed in the consolidated financial statements of affiliates has all been disclosed in the consolidated financial statements of parent and subsidiary companies. Hence, we did not prepare a separate set of consolidated financial statements of affiliates.

Very truly yours,

ASIA CEMENT CORPORATION

DOUGLAS TONG HSU Chairman

March 8, 2022

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Asia Cement Corporation

Opinion

We have audited the accompanying consolidated financial statements of Asia Cement Corporation and its subsidiaries (collectively referred to as the “Group”), which comprise the consolidated balance sheets as of December 31, 2021 and 2020, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies (collectively referred to as the “consolidated financial statements”).

In our opinion, based on our audits and the reports of other auditors (refer to Other Matter section), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2021 and 2020, 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.

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, 2021. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The key audit matters identified in the Group’s consolidated financial statements for the year ended December 31, 2021 are described as follows:

Estimated Impairment of Trade Receivables in the Concrete Segment in Mainland China

With the PRC government's property market tightening regulations, the property development sector, of which the indirect and ultimate customers of the Group's concrete segment in mainland China were a part, faced massive debt and cash flow issues. The management of the Group estimates the amount of lifetime expected credit losses (ECLs) of trade receivables based on a provision matrix through grouping of various debtors that have common risk characteristics, after considering the aging and repayment history of the respective trade receivables. Estimated loss rates are based on historical observed default rates over the expected life of the debtors and are adjusted for forward-looking information; refer to Notes 5 and 10 to the consolidated financial statements for the details. Because the ECLs on the respective trade receivables involve significant judgments and uncertainties, we considered the estimated impairment of trade receivables in the concrete segment in mainland China as one of the key audit matters.

The corresponding audit procedures that we performed for the estimated impairment of the above trade receivables were as follows:

We obtained an understanding of the relevant key controls over the assessment and monitoring of credit risks, and determination of allowance for ECLs.
We evaluated the model used by management in determining the allowance for ECLs.
We tested the integrity of information used by management to develop the provision matrix, including the aging analysis of trade receivables in the concrete segment in mainland China as of the balance sheet date, on a sample basis, by comparing individual items in the analysis with the relevant sales invoices and other supporting documents.
We challenged management’s basis and judgment in determining the credit loss allowance on trade receivables in the concrete segment in mainland China as of the balance sheet date, including their identification and provision of credit-impaired trade receivables, the reasonableness of management’s grouping of the remaining trade debtors into different categories in the provision matrix, and the basis of estimated loss rates applied in each category in the provision matrix (with reference to historical default rates and forward-looking information).
We obtained confirmations and evidence of subsequent settlements on a sample basis for trade receivable balances in the concrete segment in mainland China.

Fair Value Measurement of Investment Properties

Investment properties of Asia Cement Corporation are subsequently measured using the fair value model and valued by an independent qualified professional appraiser, a member of the ROC certified real estate appraisers; refer to Notes 5 and 17 to the consolidated financial statements for the details. Because the valuation of investment properties involves significant judgments and uncertainties, we considered the fair value measurement of investment properties as one of the key audit matters.

The corresponding audit procedures that we performed for the fair value measurement of investment properties were as follows:

We assessed the professional competence and independence of the appraiser engaged by management and obtained an understanding of the appraiser’s scope of work and process of engagement to confirm that no circumstances affect the appraiser’s independence and limit the scope of his work.
We obtained an understanding of and assessed the reasonableness of management’s assumptions and methods used in the valuation.
We sample-tested items from management’s supporting documents to verify the valuation process used by management and recalculated the fair value of investment properties to assess the reasonableness of management’s calculation.

Other Matter

The financial statements of China Shanshui Cement Group Limited (CSCGL) as of December 31, 2021 and 2020, an associate accounted for using the equity method, were audited by other auditors. Our opinion, insofar as it relates to the amounts included in the accompanying financial statements for CSCGL, is based solely on the reports of other auditors. As of December 31, 2021 and 2020, the aggregate carrying amount of the equity-method investments in CSCGL was NT$16,266,895 thousand and NT$14,380,609 thousand, respectively, representing 5.1% and 4.8% of the consolidated total assets. For the years ended December 31, 2021 and 2020, the share of profit or loss of CSCGL was NT$1,954,442 thousand and NT$2,146,467 thousand, respectively, both representing 8.9% of the consolidated profit before income tax.

We have also audited the parent company only financial statements of Asia Cement Corporation as of and for the years ended December 31, 2021 and 2020 on which we have issued an unmodified opinion with other matter paragraph.

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

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

Those charged with governance, including the audit committee, are responsible for overseeing the Group’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

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

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
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, 2021 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 audits resulting in this independent auditors’ report are Tai, Xin Wei and Chen, Pei De.

Deloitte & Touche Taipei, Taiwan Republic of China March 31, 2022

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.

ASIA CEMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Notes 6 and 35) Financial assets at fair value through profit or loss - current (Note 7) Financial assets at fair value through other comprehensive income - current (Notes 8 and 36) Financial assets at amortized cost - current (Notes 6, 9, 35 and 36) Contract assets - current (Notes 28 and 35) Notes receivable Third parties Trade receivables Third parties (Notes 10 and 11) Related parties (Notes 10 and 35) Other receivables (Note 35) Current tax assets (Note 30) Inventories (Note 12) Prepayments (Note 35) Other current assets (Note 20) Total current assets NON-CURRENT ASSETS Investments accounted for using the equity method (Notes 14, 35 and 36) Financial assets at fair value through other comprehensive income - non-current (Notes 8 and 36) Financial assets at amortized cost - non-current (Notes 6, 9, 35 and 36) Property, plant and equipment (Notes 15 and 36) Right-of-use assets (Notes 16 and 35) Investment properties (Notes 17 and 36) Intangible assets (Notes 18 and 19) Deferred tax assets (Note 30) Finance lease receivables - non-current (Note 11) Other non-current assets (Notes 20 ,26 and 35) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Short-term borrowings (Notes 21 and 35) Short-term bills payable (Note 22) Financial liabilities at fair value through profit or loss - current (Notes 7 and 35) Contract liabilities - current (Note 28) Accounts payable and accrued expenses Third parties (Note 19) Related parties (Note 35) Dividends and bonuses payable Other payables - others Current tax liabilities (Note 30) Provisions - current (Note 25) Lease liabilities - current (Notes 16 and 35) Deferred revenue - current (Note 24) Current portion of long-term liabilities (Notes 23 and 35) Total current liabilities NON-CURRENT LIABILITIES Bonds payable (Note 23) Long-term borrowings (Notes 23 and 35) Provisions - non-current (Notes 20, 25 and 37) Deferred tax liabilities (Note 30) Lease liabilities - non-current (Notes 16 and 35) Deferred revenue - non-current (Note 24) Net defined benefit liabilities - non-current (Note 26) Other non-current liabilities Total non-current liabilities Total liabilities EQUITY ATTRIBUTABLE TO OWNERS OF THE CORPORATION (Note 27) Share capital Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Total equity attributable to owners of the Corporation NON-CONTROLLING INTERESTS (Notes 27 and 32) Total equity TOTAL		2021 Amount % $ 33,450,618 10 24,229,761 8 3,902,921 1 14,755,328 5 188,287 - 6,744,079 2 10,314,291 3 666,721 - 568,283 - 73,780 - 8,813,309 3 1,907,635 1 340,705 - 105,955,718 33 88,108,186 28 11,132,674 4 60,619 - 41,431,732 13 4,756,164 2 36,843,630 12 6,969,037 2 891,351 - 16,304,836 5 4,602,122 1 211,100,351 67 $ 317,056,069 100 $ 23,699,570 7 27,887,081 9 - - 1,046,223 - 12,237,120 4 265,249 - 251,819 - 40,281 - 2,414,410 1 74,782 - 187,274 - 75,912 - 2,902,645 1 71,082,366 22 45,131,854 14 7,050,329 2 1,027,756 1 10,297,825 3 1,084,452 1 696,069 - 130,949 - 281,583 - 65,700,817 21 136,783,183 43 35,455,721 11 5,986,339 2 19,783,405 7 66,476,869 21 28,739,477 9 114,999,751 37 485,112 - 156,926,923 50 23,345,963 7 180,272,886 57 $ 317,056,069 100		2020
				Amount % $ 25,911,732 9 14,864,809 5 4,252,727 2 16,575,640 6 98,607 - 7,046,851 2 8,850,968 3 650,797 - 580,809 - 9,434 - 6,596,268 2 1,050,301 - 535,004 - 87,023,947 29 84,873,235 29 11,127,995 4 52,778 - 52,820,212 18 4,938,963 2 36,589,248 12 7,254,262 2 690,705 - 7,392,214 3 4,323,296 1 210,062,908 71 $ 297,086,855 100 $ 19,214,889 7 13,881,948 5 425,693 - 1,117,842 - 9,316,509 3 247,171 - 238,361 - 139,378 - 2,954,930 1 52,000 - 222,101 - 75,912 - 16,140,876 6 64,027,610 22 38,800,000 13 10,944,833 4 915,754 - 10,115,317 4 1,158,824 - 771,981 - 173,189 - 292,395 - 63,172,293 21 127,199,903 43 33,614,472 11 1,492,584 1 18,473,057 6 65,267,773 22 27,842,666 10 111,583,496 38 1,078,007 - 147,768,559 50 22,118,393 7 169,886,952 57 $ 297,086,855 100

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

(With Deloitte & Touche auditors’ report dated March 31, 2022)

ASIA CEMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE (Notes 28 and 35) OPERATING COSTS (Notes 12, 29 and 35) GROSS PROFIT OPERATING EXPENSES Administrative expenses (Notes 29 and 35) Expected credit loss (Note 10) Total operating expenses OPERATING INCOME NON-OPERATING INCOME AND EXPENSES Interest income Other income (Note 29) Other gains and losses (Note 29) Finance costs (Note 29) Share of profit of associates and joint ventures Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Note 30) NET INCOME FOR THE YEAR OTHER COMPREHENSIVE LOSS, NET Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans Unrealized gain (loss) on investments in equity instruments at fair value through other comprehensive income Share of other comprehensive income (loss) of associates and joint ventures		2021 Amount % $ 89,654,713 100 68,473,835 77 21,180,878 23 2,855,967 3 638,694 1 3,494,661 4 17,686,217 19 807,847 1 674,520 1 (2,658,895) (3) (894,326) (1) 6,318,550 7 4,247,696 5 21,933,913 24 4,406,143 5 17,527,770 19 180,387 - 275,617 - 623,962 1 1,079,966 1		2020
				Amount % $ 78,240,880 100 54,911,404 70 23,329,476 30 3,115,420 4 543,918 1 3,659,338 5 19,670,138 25 1,085,263 1 999,556 1 (1,086,933) (1) (1,163,645) (1) 4,639,504 6 4,473,745 6 24,143,883 31 5,370,076 7 18,773,807 24 (64,126) - (978,258) (1) (254,143) (1) (1,296,527) (2) (Continued)

ASIA CEMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

Items that may be reclassified subsequently to profit or loss: Exchange differences on translating the financial statements of foreign operations Share of other comprehensive loss of associates and joint ventures Other comprehensive loss for the year, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR NET PROFIT ATTRIBUTABLE TO: Owners of the Corporation Non-controlling interests TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO: Owners of the Corporation Non-controlling interests EARNINGS PER SHARE (Note 31) Basic Diluted		2021 Amount % $ (536,043) - (940,473) (1) (1,476,516) (1) (396,550) - $ 17,131,220 19 $ 15,068,221 17 2,459,549 3 $ 17,527,770 20 $ 14,758,614 16 2,372,606 3 $ 17,131,220 19 $ 4.70 $ 4.57		2020
				Amount % $ 885,825 1 (778,629) (1) 107,196 - (1,189,331) (2) $ 17,584,476 22 $ 14,710,486 19 4,063,321 5 $ 18,773,807 24 $ 13,255,580 17 4,328,896 5 $ 17,584,476 22 $ 4.70 $ 4.41

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

(With Deloitte & Touche auditors’ report dated March 31, 2022)

(Concluded)

ASIA CEMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

		Equity Attributable to O	rs of the Corporation
Share Capital	Issued Amount Capital Surplus $ 33,614,472 $ 1,456,054 - - - - - - - - - - - 36,112 - 418 - - - - - - - - 33,614,472 1,492,584 - - - - - - - - - - 1,841,249 4,496,893 - (3,813 ) - 675 - - - - - - $ 35,455,721 $ 5,986,339	Retained Earnings Unappropriated Legal Reserve Special Reserve Earnings $ 16,727,089 $ 64,463,426 $ 27,373,840 1,745,968 - (1,745,968 ) - 804,347 (804,347 ) - - (10,084,341 ) - - 14,710,486 - - (103,026 ) - - - - - (1,424,920 ) - - (20,704 ) - - - - - 2,590 - - (60,944) 18,473,057 65,267,773 27,842,666 1,310,348 - (1,310,348 ) - 1,209,096 (1,209,096 ) - - (11,933,138 ) - - 15,068,221 - - 251,158 - - - - - - - - (14 ) - - - - - 31,614 - - (1,586) $ 19,783,405 $ 66,476,869 $ 28,739,477		Other Equity		Total Other Equity $ 2,432,477 - - - - (1,351,880 ) - - - - (2,590 ) - 1,078,007 - - - - (560,765 ) - - - - (31,614 ) (516) $ 485,112
			Exchange Differences on Unrealized Gain (Loss) on Translating the Financial Financial Assets at Fair Value Statements of Through Other Foreign Comprehensive Operations Income $ (5,913,201 ) $ 7,908,323 - - - - - - - - (195,754 ) (1,491,574 ) - - - - - - - - - (2,590 ) - - (6,108,955 ) 6,414,159 - - - - - - - - (1,302,920 ) 545,523 - - - - - - - - - (31,614 ) - - $ (7,411,875) $ 6,928,068	Gain on Property Revaluation $ 385,214 - - - - 331,756 - - - - - - 716,970 - - - - 194,724 - - - - - (516) $ 911,178	Cash Flow Hedges $ 52,141 - - - - 3,692 - - - - - - 55,833 - - - - 1,908 - - - - - - $ 57,741

Shares 3,361,447 - - - - - - - - - - - 3,361,447 - - - - - 184,125 - - - - - 3,545,572

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

(With Deloitte & Touche auditors’ report dated March 31, 2022)

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ASIA CEMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expenses Amortization expenses Expected credit loss recognized on trade receivables Net loss on fair value changes of financial assets and liabilities designated as at fair value through profit or loss Finance costs Interest income Dividend income Share of profit of associates and joint ventures Loss on disposal of property, plant and equipment Loss on disposal of intangible assets Impairment loss recognized on right-of-use assets Gain on disposal of financial assets Gain on disposal of investments accounted for using the equity method Impairment loss recognized on investments accounted for using the equity method Impairment loss recognized on property, plant and equipment (Reversal) write-downs of inventories Realized gain on transactions with associates Unrealized loss (gain) on foreign exchange Gain on changes in fair value of investment properties Loss on disposal of subsidiaries Gains on modification of lease Changes in operating assets and liabilities Financial assets mandatorily classified as at fair value through profit or loss Contract assets Notes receivable Trade receivables Other receivables Inventories Prepayments Other current assets Financial liabilities held for trading Contract liabilities Accounts payable and accrued expenses Provisions Net defined benefit liabilities Deferred revenue Cash generated from operations Interest received	2021 $ 21,933,913 4,611,063 318,975 638,694 256,468 894,326 (807,847) (740,325) (6,318,550) 63,704 67,526 118,569 (547,343) - 231,725 71,411 (15,989) - 163,737 (244,301) - (645) (8,910,857) (89,680) 274,597 (742,176) 42,103 (2,241,819) (912,282) 242,129 (678,950) (66,680) 2,680,798 135,329 (19,832) (75,912) 10,331,879 801,759	2020 $ 24,143,883 4,628,688 318,863 543,918 240,993 1,163,645 (1,085,263) (786,481) (4,639,504) 72,151 1,886 - (306,543) (2,774) - 13,212 8,690 (3,997) (121,120) (237,856) 58,871 (8,743) (9,769,641) (30,195) 4,193,907 1,548,211 (69,801) 1,221,677 730,120 (44,399) - 130,407 (614,462) 41,722 (11,295) (75,912) 21,252,858 1,021,397 (Continued)

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ASIA CEMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

Dividends received Interest paid Income tax paid Net cash generated from operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at fair value through other comprehensive income Proceeds from sale of financial assets at fair value through other comprehensive income Proceeds from financial assets at amortized cost Acquisition of associates and joint ventures Net cash inflow on disposal of associates Increase in long-term prepayments for investments Net cash outflow on disposal of subsidiaries Proceeds from capital reduction of investments accounted for using the equity method Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in advance receipts for investments Decrease in refundable deposits Payments for intangible assets Payments for right-of-use assets Payments for investment properties Increase in other non-current assets Proceeds from disposal of right-of-use assets Net cash used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase (decrease) in short-term borrowings Increase (decrease) in short-term bills payable Proceeds from issuance of bonds Repayments of bonds Proceeds from long-term borrowings Repayments of long-term borrowings Decrease in guarantee deposits received Repayment of the principal portion of lease liabilities (Decrease) increase in other non-current liabilities Dividends paid Acquisition of additional interests in subsidiaries Dividends paid to non-controlling interests Net cash generated from (used in) financing activities	2021 $ 3,421,165 (899,538) (5,058,557) 8,596,708 (89,550) 710,289 1,495,561 (245,389) 37,738 (83,542) - - (3,250,124) 46,236 - 12,406 (74,724) (229,498) (3,035) - 10,457 (1,663,175) 4,596,853 14,006,500 6,300,000 (3,000,000) 28,704,784 (36,228,702) (97,812) (233,106) (4,376) (11,933,944) (1,838) (1,142,544) 965,815	2020 $ 3,938,949 (1,106,774) (5,482,574) 19,623,856 (1,597,817) 909,341 5,931,149 (6) 2,774 (67,474) (2,857) 16,467 (6,293,577) 189,913 150,000 69,924 (3,779,208) (66,453) (2,343) (37) 34,143 (4,506,061) (4,390,372) (5,050,100) 28,800,000 (3,000,000) 64,307,163 (77,052,903) (281,771) (236,111) 7,043 (10,084,585) (5,391,054) (1,646,335) (14,019,025) (Continued)

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ASIA CEMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

2021
EFFECTS OF EXCHANGE RATE CHANGES ON THE BALANCE
OF CASH AND CASH EQUIVALENTS HELD IN FOREIGN
CURRENCIES
$ (360,462)

NET INCREASE IN CASH AND CASH EQUIVALENTS
7,538,886
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE
YEAR

25,911,732

CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR
$ 33,450,618

The accompanying notes are an integral part of the consolidated financial statements.
(With Deloitte & Touche auditors’ report dated March 31, 2022)

2020
$ 77,467

1,176,237

24,735,495
$ 25,911,732
(Concluded)

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

ASIA CEMENT CORPORATION AND SUBSIDIARIES

1. ORGANIZATION AND OPERATIONS

Asia Cement Corporation (the “Corporation”) was incorporated in March 1957. It manufactures and sells cement, clinker, cement-related products and ready-mixed concrete, and engages in leasing activities. The Corporation is also required to undertake reforestation activities in designated areas. The Corporation’s shares have been listed on the Taiwan Stock Exchange since June 1962.

In June 1992 and September 1996, certain shares of the Corporation were sold by Far Eastern New Century Corporation (FENC) in the form of global depositary shares (GDSs). Such GDSs have been quoted through the SEAQ system of the London Stock Exchange and traded through the portal system of the National Association of Securities Dealers, Inc.

On March 25, 2021, in order to reduce the related management costs, the Corporation’s board of directors resolved to terminate the GDSs program and to delist from the London Stock Exchange.

The consolidated financial statements are presented in the Corporation’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Corporation’s board of directors and authorized for issue on March 8, 2022.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC)

Except for the following, the initial application of the IFRSs endorsed and issued into effect by the FSC did not have any material impact on the Group’s accounting policies:

Amendment to IFRS 16 “Covid-19 - Related Rent Concessions beyond June 30, 2021”

The Group elected to apply the amendment that extends the availability of the practical expedient to lease payments due on or before June 30, 2022. Refer to Note 4 for the relevant accounting policies of the practical expedient.

The Group applies the amendments from January 1, 2021.

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b. The IFRSs endorsed by the FSC for application starting from 2022

New IFRSs “Annual Improvements to IFRS Standards 2018-2020” Amendments to IFRS 3 “Reference to the Conceptual Framework” Amendments to IAS 16 “Property, Plant and Equipment - Proceeds before Intended Use” Amendments to IAS 37 “Onerous Contracts - Cost of Fulfilling a Contract”	Effective Date Announced by IASB
	January 1, 2022 (Note 1) January 1, 2022 (Note 2) January 1, 2022 (Note 3) January 1, 2022 (Note 4)

Note 1: The amendments to IFRS 9 are applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” are applied prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoptions of IFRSs” are applied retrospectively for annual reporting periods beginning on or after January 1, 2022.
Note 2: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.
Note 3: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.
Note 4: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.

Amendments to IAS 16 “Property, Plant and Equipment: Proceeds before Intended Use”

The amendments prohibit an entity from deducting from the cost of an item of property, plant and equipment any proceeds from selling items produced while bringing that asset to the location and condition necessary for it to be capable of operating in the manner intended by management. The cost of those items is measured in accordance with IAS 2 “Inventories”. Any proceeds from selling those items and the cost of those items are recognized in profit or loss in accordance with applicable standards.

The amendments are applicable only to items of property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021. The Group shall restate its comparative information when it initially applies the aforementioned amendments.

Upon initial application of the aforementioned amendments, the anticipated impact on the current year is set out below:

Carrying Amount Impact on total comprehensive income Operating revenue $ 89,654,713 Operating costs 68,473,835 Total effect on net profit for the year	Adjustments Arising from Initial Application Adjusted Carrying Amount $ 677,891 $ 90,332,604 677,891 69,151,726 $ -

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Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group has assessed that the application of other standards and interpretations will not have a material impact on the Group’s financial position and financial performance.

c. New IFRSs in issue but not yet endorsed and issued into effect by the FSC

Effective Date New IFRSs Announced by IASB (Note 1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets To be determined by IASB between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17 - January 1, 2023 Comparative Information” Amendments to IAS 1 “Classification of Liabilities as Current or January 1, 2023 Non-current” Amendments to IAS 1 “Disclosure of Accounting Policies” January 1, 2023 (Note 2) Amendments to IAS 8 “Definition of Accounting Estimates” January 1, 2023 (Note 3) Amendments to IAS 12 “Deferred Tax related to Assets and January 1, 2023 (Note 4) Liabilities arising from a Single Transaction”

Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note 2: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
Note 3: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.
Note 4: Except for deferred taxes that will be recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments will be applied prospectively to transactions that occur on or after January 1, 2022.

As of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of the above standards and interpretations will have on the Group’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs as endorsed and issued into effect by the FSC.

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b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments, investment properties which are measured at fair value, and net defined benefit assets (liabilities) which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
3) Level 3 inputs are unobservable inputs for an asset or liability.
c. Classification of current and non-current assets and liabilities

Current assets include:

1) Assets held primarily for the purpose of trading;
2) Assets expected to be realized within 12 months after the reporting period; and
3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

Current liabilities include:

1) Liabilities held primarily for the purpose of trading;
2) Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the consolidated financial statements are authorized for issue; and
3) Liabilities for which the Group does not have an unconditional right to defer settlement for at least 12 months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

Assets and liabilities that are not classified as current are classified as non-current.

Ya Li Precast and Prestressed Concrete Industries Corp., Asia Engineering Enterprise Corp. and Ya Li Precast Concrete India Pvt. Ltd. engage in construction related businesses, which have operating cycles of over one year. The assets and liabilities of the aforementioned companies related to the construction contracts are classified as current or non-current according to the length of their operating cycles.

d. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Corporation and the entities controlled by the Corporation (i.e., its subsidiaries).

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Income and expenses of subsidiaries acquired or disposed of during the period are included in the consolidated statement of profit or loss and other comprehensive income from the effective dates of acquisitions up to the effective dates of disposals, as appropriate.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Corporation.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation.

Total comprehensive income of subsidiaries is attributed to the owners of the Corporation and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the Group’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the interests of the Group and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to the owners of the Corporation.

Refer to Note 13, Tables 7 and 8 for detailed information on subsidiaries (including percentages of ownership and main businesses).

e. Foreign currencies

In preparing the financial statements of each individual entity, transactions in currencies other than the entity’s functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which cases, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction.

For the purpose of presenting the consolidated financial statements, the functional currencies of the Group (including subsidiaries, associates, joint ventures and branches in other countries that use currencies which are different from the currency of the Corporation) are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income (attributed to the owners of the Corporation and non-controlling interests as appropriate).

On the disposal of a foreign operation, all of the exchange differences accumulated in equity in respect of that operation attributable to the owners of the Corporation are reclassified to profit or loss.

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f. Inventories

Inventories consist of raw materials, supplies, finished goods and work-in-process and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

g. Investments in associates and joint ventures

An associate is an entity over which the Group has significant influence and which is neither a subsidiary nor an interest in a joint venture. A joint venture is a joint arrangement whereby the Group and other parties that have joint control of the arrangement have rights to the net assets of the arrangement.

The Group uses the equity method to account for its investments in associates and joint ventures.

Under the equity method, investments in an associate and a joint venture are initially recognized at cost and adjusted thereafter to recognize the Group’s share of profit or loss and other comprehensive income of the associate and joint venture. The Group also recognizes the changes in the Group’s share of equity of associates and joint ventures attributable to the Group.

Any excess of the cost of acquisition over the Group’s share of net fair value of the identifiable assets and liabilities of an associate or a joint venture at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Group’s share of net fair value of the identifiable assets and liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

When the Group subscribes for additional new shares of an associate and joint venture at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group’s proportionate interest in the associate and joint venture. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus - changes in capital surplus from investments in associates and joint ventures accounted for using the equity method. If the Group’s ownership interest is reduced due to its additional subscription of the new shares of the associate and joint venture, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate and joint venture is reclassified to profit or loss on the same basis as would be required if the investee had directly disposed of the related assets or liabilities. When the adjustment should be debited to capital surplus, but the capital surplus recognized from investments accounted for using the equity method is insufficient, the shortage is debited to retained earnings.

The entire carrying amount of an investment (including goodwill) is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is deducted from the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

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The Group discontinues the use of the equity method from the date on which its investment ceases to be an associate and a joint venture. Any retained investment is measured at fair value at that date, and the fair value is regarded as the investment’s fair value on initial recognition as a financial asset. The difference between the previous carrying amount of the associate and joint venture attributable to the retained interest and its fair value is included in the determination of the gain or loss on disposal of the associate and the joint venture. The Group accounts for all amounts previously recognized in other comprehensive income in relation to that associate and joint venture on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. If an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the Group continues to apply the equity method and does not remeasure the retained interest.

When the Group transacts with its associate and joint venture, profits and losses resulting from the transactions with the associate and joint venture are recognized in the Group’s consolidated financial statements only to the extent of unrelated parties’ interests in the associate and joint venture.

The Group’s share of comprehensive income of associates or joint ventures is recognized using the treasury share method if there are reciprocal holdings between investors and investees. The reciprocally held shares of the Group are treated as treasury shares and are deducted from the outstanding shares in computing basic earnings per share.

h. Property, plant and equipment

Property, plant and equipment are stated at cost, less accumulated depreciation and accumulated impairment loss. Major renewals and betterments are capitalized, while maintenance and repairs are expensed currently. Properties in the course of construction are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the fixed-percentage-on-declining-balance method or the straight-line method. Each significant part is depreciated separately. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

i. Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation. Investment properties also include land held for a currently undetermined future use.

Freehold investment properties are initially measured at cost, including transaction costs, and are subsequently measured using the fair value model. Changes in the fair value of investment properties are included in profit or loss for the period in which they arise.

For a transfer from property, plant and equipment to investment property at the end of owner-occupation, any difference between the fair value and the carrying amount of the property at the date of transfer is recognized in other comprehensive income.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

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j. Goodwill

Goodwill arising from the acquisition of a business is measured at cost as established at the date of acquisition of the business less accumulated impairment loss.

For the purposes of impairment testing, goodwill is allocated to each of the Group’s cash-generating units or groups of cash-generating units (referred to as “cash-generating units”) that is expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually or more frequently when there is an indication that the unit may be impaired, by comparing its carrying amount, including the attributed goodwill, with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual period, that unit is tested for impairment before the end of the current annual period. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then pro rata to the other assets of the unit based on the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss. Any impairment loss recognized for goodwill is not reversed in subsequent periods.

k. Intangible assets

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful life, residual value, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis.

Intangible assets acquired in a business combination and recognized separately from goodwill are initially recognized at their fair value at the acquisition date (which is regarded as their cost). Subsequent to initial recognition, they are measured on the same basis as intangible assets that are acquired separately.

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

l. Impairment of property, plant and equipment, right-of-use assets, and intangible assets other than goodwill

At the end of each reporting period, the Group reviews the carrying amounts of its property, plant and equipment, right-of-use assets and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered any impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the smallest group of cash-generating units on a reasonable and consistent basis of allocation.

Intangible assets with indefinite useful lives and intangible assets not yet available for use are tested for impairment at least annually, and whenever there is an indication that the asset may be impaired.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

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When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

m. Financial instruments

Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to an acquisition or issuance of financial assets and financial liabilities (other than financial assets and financial liabilities at FVTPL) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at FVTPL are recognized immediately in profit or loss.

Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

1) Measurement category

Financial assets are classified into the following categories: financial assets at FVTPL, financial assets at amortized cost, and investments in equity instruments at FVTOCI.

a) Financial assets at FVTPL

Financial assets are classified as at FVTPL when such financial assets are mandatorily classified as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI and debt instruments that do not meet the amortized cost criteria or the FVTOCI criteria.

Financial assets at FVTPL are subsequently measured at fair value, and any dividends or interest earned on such financial assets are recognized in other income and interest income, respectively; any remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 34.

b) Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

i. The financial asset is held within a business model whose objective is to hold financial asset in order to collect contractual cash flows; and
ii. The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, trade receivables, other receivables and debt instruments at amortized cost, are measured at amortized cost, which is the gross carrying amount determined by the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

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Interest income is calculated by applying the effective interest rate to the gross carrying amount of the financial asset.

Cash equivalents include time deposits, bonds sold under repurchase agreements and commercial papers with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

c) Investments in equity instruments at FVTOCI

On initial recognition, the Group may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments, instead, they will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Group’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

2) Impairment of financial assets

The Group recognizes a loss allowance for expected credit loss (ECLs) on financial assets at amortized cost (including trade receivables) as well as finance lease receivables at the end of each reporting period.

The Group always recognizes lifetime ECLs for trade receivables. For all other financial instruments and finance lease receivables, the Group recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Group measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

ECLs reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

Impairment loss on all financial instruments is recognized with a corresponding adjustment to their carrying amounts through a loss allowance account.

3) Derecognition of financial assets

The Group derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

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On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in an equity instrument at FVTOCI, the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

Financial liabilities

1) Subsequent measurement

Except the following situation, all financial liabilities are measured at amortized cost using the effective interest method:

Financial liabilities are held for trading and are stated at fair value, and any interest paid on such financial liabilities is recognized in finance costs; any remeasurement gains or losses on such financial liabilities are recognized in other gains or losses. Fair value is determined in the manner described in Note 34.

2) Derecognition of financial liabilities

The difference between the carrying amount of the financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

Convertible bonds

The component parts of convertible bonds issued by the Group are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

On initial recognition, the fair value of the liability component is estimated using the prevailing market interest rate for similar non-convertible instruments. This amount is recorded as a liability on an amortized cost basis using the effective interest method until extinguished upon conversion or upon the instrument’s maturity date. Any embedded derivative liability is measured at fair value.

The conversion option classified as equity is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognized and included in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion option classified as equity will remain in equity until the conversion option is exercised; in which case, the balance recognized in equity will be transferred to capital surplus - share premiums. When the conversion option remains unexercised at maturity, the balance recognized in equity will be transferred to capital surplus - share premiums.

Transaction costs that relate to the issuance of the convertible notes are allocated to the liability and equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to the liability component are included in the carrying amount of the liability component. Transaction costs relating to the equity component are recognized directly in equity.

Derivative financial instruments

The Group enters into cross-currency swap contracts to manage its exposure to interest rate and foreign exchange rate risks.

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Derivatives are initially recognized at fair value at the date on which the derivative contracts are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately. When the fair value of a derivative financial instrument is positive, the derivative is recognized as a financial asset; when the fair value of a derivative financial instrument is negative, the derivative is recognized as a financial liability.

Derivatives embedded in hybrid contracts that contain financial asset hosts that is within the scope of IFRS 9 are not separated; instead, the classification is determined in accordance with the entire hybrid contract. Derivatives embedded in non-derivative host contracts that are not financial assets that is within the scope of IFRS 9 (e.g., financial liabilities) are treated as separate derivatives when they meet the definition of a derivative; their risks and characteristics are not closely related to those of the host contracts; and the mixed contracts are not measured at FVTPL.

n. Provisions

Provisions are measured at the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

o. Revenue recognition

The Group identifies the contract with the customers, identifies the performance obligations in the contract, allocates the transaction price to the performance obligations, and recognizes revenue when performance obligations are satisfied.

1) Revenue from the sale of goods

Revenue from sales of goods is recognized when the goods are delivered to the customers’ specified locations, which is the time that the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Trade receivables are recognized concurrently. The advance receipts before the delivery of goods are recognized as contract liabilities and reclassified to revenue after the goods are transferred to the customers.

2) Revenue from the rendering of services

Revenue from the rendering of services comes from the freight revenue received from goods shipping services. As the Group provides goods shipping services, the customer simultaneously receives and consumes the benefits provided by the Group’s satisfaction of performance obligations. Consequently, the related revenue is recognized when the services are rendered.

3) Construction contract revenue

The Group recognizes construction contract revenue over time while the construction is in progress. The Group measures the progress on the basis of costs incurred relative to the total expected costs as there is a direct relationship between the costs incurred and the progress of satisfying the performance obligations. Contract assets are recognized during the construction and are reclassified to trade receivables at the point at which the customer is invoiced. If the milestone payments exceed the revenue recognized to date, then the Group recognizes contract liabilities for the difference. Certain payments, which are retained by the customer as specified in the contract, are intended to ensure that the Group adequately completes all of its contractual obligations. Such retention receivables are recognized as contract assets until the Group satisfies its performance obligations.

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When the outcome of a performance obligation cannot be reasonably measured, contract revenue is recognized only to the extent of contract costs incurred in satisfying the performance obligation for which recovery is expected.

p. Leases

At the inception of a contract, the Group assesses whether the contract is, or contains, a lease.

For a contract that contains a lease component and non-lease components, the Group allocates the consideration in the contract to each component on the basis of the relative stand-alone price and accounts for each component separately.

1) The Group as lessor

Leases are classified as finance leases whenever the terms of a lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

Under finance leases, the lease payments comprise fixed payments, variable lease payments which depend on an index or a rate, and residual value guarantees. The net investment in a lease is measured at (a) the present value of the sum of the lease payments receivable by a lessor and any unguaranteed residual value accrued to the lessor plus (b) initial direct costs and is presented as a finance lease receivable. Finance lease income is allocated to the relevant accounting periods so as to reflect a constant, periodic rate of return on the Group’s net investment outstanding in respect of leases.

Lease payments from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases. Initial direct costs incurred in obtaining operating leases are added to the carrying amounts of the underlying assets and recognized as expenses on a straight-line basis over the lease terms.

Variable lease payments that do not depend on an index or a rate are recognized as income in the periods in which they are incurred.

When a lease includes both land and building elements, the Group assesses the classification of each element separately as a finance or an operating lease based on the assessment as to whether substantially all the risks and rewards incidental to ownership of each element have been transferred to the lessee. The lease payments are allocated between the land and the building elements in proportion to the relative fair values of the leasehold interests in the land element and building element of the lease at the inception of a contract. If the allocation of the lease payments can be made reliably, each element is accounted for separately in accordance with its lease classification. When the lease payments cannot be allocated reliably between the land and building elements, the entire lease is generally classified as a finance lease unless it is clear that both elements are operating leases; in which case, the entire lease is classified as an operating lease.

2) The Group as lessee

The Group recognizes right-of-use assets and lease liabilities for all leases at the commencement date of a lease, except for short-term leases and low-value asset leases accounted for applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

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Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments and variable lease payments which depend on an index or a rate. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses the lessee’s incremental borrowing rate.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Group remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. For a lease modification that is not accounted for as a separate lease, the Group accounts for the remeasurement of the lease liability by (a) decreasing the carrying amount of the right-of-use asset of lease modifications that decreased the scope of the lease, and recognizing in profit or loss any gain or loss on the partial or full termination of the lease; (b) making a corresponding adjustment to the right-of-use asset of all other lease modifications. Lease liabilities are presented on a separate line in the consolidated balance sheets.

The Group negotiates with the lessor for rent concessions as a direct consequence of the Covid-19 to change the lease payments originally due by June 30, 2022, that results in the revised consideration for the lease substantially the same as, or less than, the consideration for the lease immediately preceding the change. There is no substantive change to other terms and conditions. The Group elects to apply the practical expedient to all of these rent concessions and, therefore, does not assess whether the rent concessions are lease modifications. Instead, the Group recognizes the reduction in lease payment in profit or loss as a deduction of expenses of variable lease payments, in the period in which the events or conditions that trigger the concession occur, and makes a corresponding adjustment to the lease liability.

Variable lease payments that do not depend on an index or a rate are recognized as expenses in the periods in which they are incurred.

q. Borrowing costs

Borrowing costs directly attributable to an acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other than those stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

27 -
r. Government grants

Government grants are not recognized until there is reasonable assurance that the Group will comply with the conditions attaching to them and that the grants will be received.

Government grants related to income are recognized in other income on a systematic basis over the periods in which the Group recognizes as expenses the related costs that the grants intend to compensate. Specifically, government grants whose primary condition is that the Group should purchase, construct or otherwise acquire non-current assets are recognized as deferred revenue transferred to profit or loss on a systematic and rational basis over the useful lives of the related assets.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the Group with no future related costs are recognized in profit or loss in the period in which they become receivable.

s. Employee benefits
1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement) under defined benefit retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost, past service cost, as well as gains and losses on settlements) and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expense in the period in which they occur. Remeasurement, comprising actuarial gains and losses and the return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which it occurs. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Group’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

3) Termination benefits

A liability for a termination benefit is recognized at the earlier of when the Group can no longer withdraw the offer of the termination benefit and when the Group recognizes any related restructuring costs.

t. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

Income tax payable (refundable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

28 -

According to the Income Tax Act in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

2) Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences and unused loss carryforwards to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognized to the extent that it is probable that there will be sufficient taxable profits against which to utilize the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. If investment properties measured using the fair value model are non-depreciable assets, or are held under a business model whose objective is not to consume substantially all of the economic benefits embodied in the assets over time, the carrying amounts of such assets are presumed to be recovered entirely through sale.

3) Current tax and deferred tax for the year

Current tax and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income, in which case, the current tax and deferred tax are also recognized in other comprehensive income, respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

In the application of the Group’s accounting policies, management is required to make judgments, estimations and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

29 -

The Group considers the recent development of the COVID-19 pandemic in Taiwan and its economic environment implications when making its critical accounting estimates in cash flow projections, growth rate, discount rate, profitability, etc. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

Key Sources of Estimation Uncertainty

Estimated impairment of trade receivables

The provision for impairment of trade receivables is based on assumptions about risk of default and expected loss rates. The Group uses judgment in making these assumptions and in selecting the inputs to the impairment calculation, based on the Group’s historical experience, existing market conditions as well as forward looking estimates as of the end of each reporting period. For details of the key assumptions and inputs used, see Note 10.

Fair value measurements and valuation process of investment properties

If the Group’s investment properties measured at fair value have no quoted prices in active markets, the Group determines whether to engage third party qualified appraisers for the application of appropriate valuation techniques for fair value measurements in accordance with related regulations or professional standards. The engaged appraisers measure the fair value of investment properties through the income approach and land development analysis approach, and would determine appropriate inputs by reference to the existing lease contract, rentals of similar properties in the vicinity of the Group’s investment properties, domestic macroeconomic prospects, local land use, and market rates. If the actual changes of inputs in the future differ from expectations, the fair value might vary accordingly.

Information about the valuation techniques and inputs used in determining the fair value of investment properties is disclosed in Note 17.

6. CASH AND CASH EQUIVALENTS

Checking accounts and demand deposits Petty cash Cash on hand Cash equivalents (investments with original maturities of 3 months or less) Time deposits Repurchase agreements collateralized by bonds		December 31	December 31
		2021 $ 8,546,905 3,759 1,137 24,357,981 540,836 $ 33,450,618	2020 $ 9,821,180 3,312 1,162 15,023,096 1,062,982 $ 25,911,732

The market rate intervals of time deposits and repurchase agreements collateralized by bonds at the end of the reporting period were as follows:

Time deposits Repurchase agreements collateralized by bonds	December 31
	2021 2020 0.12%-3.30% 0.05%-3.30% 0.31%-0.33% 0.24%-0.55%

30 -

As of December 31, 2021 and 2020, the Group’s bank deposits in the amounts of $1,052,588 thousand and $314,343 thousand, respectively, are restricted as collateral for bank loans and classified as financial assets at amortized cost in the balance sheets. Time deposits with original maturities of more than 3 months in the amounts of $13,460,406 thousand and $5,851,847 thousand, respectively, are classified as financial assets at amortized cost in the balance sheets as of December 31, 2021 and 2020. Furthermore, as of December 31, 2021, repurchase agreements collateralized by bonds with original maturities of more than 3 months in the amount of $302,953 thousand are also classified as financial assets at amortized cost. Refer to Note 9 for the details.

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT

Financial assets at FVTPL Financial assets mandatorily classified as at FVTPL Derivative financial assets (not under hedge accounting) Bond options Non-derivative financial assets Beneficiary certificates Listed shares Financial liabilities at FVTPL Financial liabilities held for trading Derivative financial liabilities (not under hedge accounting) Cross-currency swap contracts		December 31	December 31
		2021 $ 466 18,907,053 5,322,242 $ 24,229,761 $ -	2020 $ 94,743 9,311,570 5,458,496 $ 14,864,809 $ 425,693

The Group entered into cross-currency swap contracts to manage exposures to exchange rate fluctuations. The Group’s financial hedging strategy is to avoid most of the cash flow risk exposure. As of December 31, 2020, outstanding cross-currency swap contracts not under hedge accounting were as follows:

Notional Amount		Range of Interest	Range of Interest
(In Thousands)	Maturity Date	Rates Paid	Rates Received
US$215,000	2021.09.15	-	2.68%-2.80%

31 -

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Domestic investments Listed shares Unlisted shares Foreign investments Listed shares Unlisted shares		December 31	December 31	December 31	December 31
		2021 Current Non-current $ 3,875,642 $ 8,917,601 - 1,815,326 3,875,642 10,732,927 27,279 - - 399,747 27,279 399,747 $ 3,902,921 $ 11,132,674		2020
		Current $ 3,875,642 - 3,875,642 27,279 - 27,279 $ 3,902,921		Current $ 4,102,617 - 4,102,617 150,110 - 150,110 $ 4,252,727	Non-current $ 9,043,782 1,691,106 10,734,888 - 393,107 393,107 $ 11,127,995

a. These investments in equity instruments are not held for trading. Instead, they are held for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Group’s strategy of holding these investments for long-term purposes.
b. Asia Cement Pioneer Investment Ltd. (ACP) acquired the shares of Cementon Micronesia LLC for US$3,900 thousand in September 2010. As of December 31, 2021, 50% of the investment consideration was not paid and accounted for as accounts payable and accrued expenses - third parties. The consideration will be paid once the counterparty asks for payment.
c. Refer to Note 36 for information relating to financial assets at fair value through other comprehensive income pledged as collaterals.

9. FINANCIAL ASSETS AT AMORTIZED COST

Time deposits with original maturities of more than 3 months Notes receivable Repurchase agreements collateralized by bonds Restricted assets Current Non-current		December 31	December 31
		2021 $ 13,460,406 - 302,953 1,052,588 $ 14,815,947 $ 14,755,328 $ 60,619	2020 $ 5,851,847 10,462,228 - 314,343 $ 16,628,418 $ 16,575,640 $ 52,778

Based on the Group’s assessment, the credit risk of these financial assets is not expected to be high and has not increased since initial recognition.

Refer to Note 36 for information relating to financial assets at amortized cost pledged as collaterals.

32 -

10. TRADE RECEIVABLES

At amortized cost Trade receivables - sales Finance lease receivable - current (Note 11) Construction receivable Operating lease receivable Less: Allowance for impairment loss - sales Less: Allowance for impairment loss - construction		December 31	December 31
		2021 $ 11,049,471 1,272,029 101,099 85,711 (1,526,743) (555) $ 10,981,012	2020 $ 9,748,930 778,653 89,250 51,449 (1,165,856) (661) $ 9,501,765

Trade Receivables - Sales

The average credit period of receivables from sales of goods was 30-90 days. Specific customers with good credit records were given longer credit period occasionally. The average credit period for customers of concrete products was 180-365 days after construction of building was finished.

The Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. The Group obtains sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

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 and by reference to the past default records of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtor operates and an assessment of both the current as well as the forecast direction of economic conditions at the reporting date. As there are different loss patterns for various customer segments, the Group uses different provision matrixes based on a provision matrix through grouping of various debtors that have common risk characteristics, and determines the expected credit loss rate by reference to the past due days of accounts receivable and regional economic conditions.

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.

December 31, 2021 Up to 90 Days 91 to 180 Days Gross carrying amount $ 8,299,753 $ 1,329,453 Loss allowance (lifetime ECLs) (184,433) (161,080) Amortized cost $ 8,115,320 $ 1,168,373 December 31, 2020 Up to 90 Days 91 to 180 Days Gross carrying amount $ 6,513,332 $ 1,440,464 Loss allowance (lifetime ECLs) (148,420) (99,688) Amortized cost $ 6,364,912 $ 1,340,776	181 to 365 Days Over 365 Days $ 596,416 $ 823,849 (404,717) (776,513) $ 191,699 $ 47,336 181 to 365 Days Over 365 Days $ 508,325 $ 1,286,809 (101,479) (816,269) $ 406,846 $ 470,540	Total $ 11,049,471 (1,526,743) $ 9,522,728 Total $ 9,748,930 (1,165,856) $ 8,583,074

33 -

The above aging schedule was based on the invoice date.

The movements of the loss allowance of trade receivables were as follows:

Balance at January 1 Add: Impairment losses recognized on receivables Add: Amounts recovered from the prior year write-offs Less: Amounts written off Disposal of subsidiary Effect of foreign currency exchange differences Balance at December 31		December 31	December 31
		2021 $ 1,166,517 638,587 12,732 (283,214) - (7,324) $ 1,527,298	2020 $ 1,043,758 502,105 1 (388,763) (6,006) 15,422 $ 1,166,517

11. FINANCE LEASE RECEIVABLES

Undiscounted lease payments Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 onwards Unguaranteed residual value Less: Unearned finance income Net investment in leases presented as finance lease receivables Current Non-current		December 31	December 31
		2021 $ 1,974,288 1,974,288 1,974,288 1,974,288 1,974,288 11,153,861 21,025,301 486,573 (3,935,009) $ 17,576,865 $ 1,272,029 16,304,836 $ 17,576,865	2020 $ 1,401,682 1,401,682 1,401,682 1,401,682 1,401,682 4,205,046 11,213,456 - (3,042,589) $ 8,170,867 $ 778,653 7,392,214 $ 8,170,867

Chiahui Power Corp. (CHP) entered into 25-year and 20-year Purchase and Sale Contracts of the Phase I and Phase II power plant, respectively, with Taiwan Power Company (TPC). According to the contracts, electricity generated by CHP is sold to TPC. CHP started its operations on December 15, 2003 and on July 31, 2021. Because the nature of the contracts is considered as conveyance of rights to use asset, the contracts are regarded as finance leases.

The Group measures the loss allowance for finance lease receivables at an amount equal to lifetime ECLs. As of December 31, 2021, no finance lease receivable was past due. The Group has not recognized a loss allowance for finance lease receivables after taking into consideration the historical default experience and the future prospects of the industries in which the lessees operate.

34 -

12. INVENTORIES

Finished goods Work in progress Raw materials Supplies		December 31	December 31
		2021 $ 1,969,519 1,036,302 4,222,989 1,584,499 $ 8,813,309	2020 $ 2,141,698 783,221 2,065,356 1,605,993 $ 6,596,268

The cost of inventories recognized as cost of goods sold for the years ended December 31, 2021 and 2020 was $59,610,450 thousand and $49,268,736 thousand, respectively. The cost of goods sold included reversals of inventory write-downs of $(15,989) thousand and inventory write-downs of $8,690 thousand. The reversals of previous write-downs resulted from the sale of these inventories.

13. SUBSIDIARIES

a. Subsidiaries included in the consolidated financial statements

Investor
Subsidiary
The Corporation
Der Ching Investment Corp. (DCI)
Ya Tung Ready-Mixed Concrete Corp. (YTRMC)
Nan Hwa Cement Corp. (NHC)
Chiahui Power Corp. (CHP)
Asia Cement (Singapore) Pte. Ltd. (ACSPL)
ACCHC
Ya Li Precast and Prestressed Concrete Industries Corp.
(YLPPC)
Asia Investment Corp. (AIC)
Fu Ming Transport Corp. (FMT)
Asia Engineering Enterprise Corp. (AEE)
Sunrise Industrial Holdings Ltd. (SIHL)
Yuan Long Stainless Steel Corp. (YLSS)
Yali Transportation Corp. (YLT)
DCI
Kowloon Cement Corp. Ltd. (KCC)
Fu Shan Mineral Stone Co., Ltd. (FSMS)
AC Mega Investment Ltd. (ACM)
AC Mega II Investment Ltd. (ACM II)
AC Mega III Investment Ltd. (ACM III)
AC Mega IV Investment Ltd. (ACM IV)
AC Leap Investment Ltd. (ACL)

Proportion of Ownership
and Voting Rights
December 31
2021
2020
Remark
99.99%
99.99%
Note 7
99.99%
99.99%
Notes 6
and 7
99.98%
99.98%
Note 7
99.70%
99.69%
Notes 6
and 7
99.99%
99.96%
Note 6
67.73%
67.73%
Note 1
83.94%
83.92%
Notes 6
and 7
100.00%
100.00%
99.95%
99.95%
Notes 6
and 7
99.74%
99.74%
Notes 6
and 7
100.00%
100.00%
100.00%
100.00%
51.61%
51.61%
Note 7
49.00%
49.00%
99.56%
99.56%
100.00%
100.00%
Notes 2
and 4
100.00%
100.00%
Notes 2
and 4
100.00%
100.00%
Notes 2
and 4
100.00%
100.00%
Notes 2
and 4
100.00%
100.00%
Notes 2
and 4
(Continued)

35 -

Investor
Subsidiary
YTRMC
Ya Sing Ready-Mixed Concrete Corp. (YSRMC)
Ya Tung Vietnam Co., Ltd. (YTV)
PT Yatung Concrete International (PYCI)
Asia Oriental (Guam) LLC (AOG)
AOG
Asia Oriental Concrete, LLC (AOC)
FMT
Fu Da Transportation Corp. (FDT)
AEE
ACCHC
AIC
CHP
DCI
NHC
FMT
FSMS
FDT
YSRMC
AEE
YTRMC
Asia Cement Explorer Investment Ltd. (ACE)
Asia Cement Pioneer Investment Ltd. (ACP)
Asia Cement Pioneer II Investment Ltd. (ACP II)
Asia Cement Pioneer III Investment Ltd. (ACP III)
Asia Cement Pioneer IV Investment Ltd. (ACP IV)
YLPPC
PYCI
Ya Li Precast Concrete India Pvt. Ltd. (YLPCIP)
AOG
ACSPL
Oriental Concrete Pte. Ltd. (OCPL)
ACCHC
ACCHC
Perfect Industrial Holdings Pte. Ltd. (PIHPL)
PIHPL
Asia Continent Investment Holdings Pte. Ltd. (ACIHPL)
Oriental Industrial Holdings Pte. Ltd. (OIHPL)
ACIHPL
Jiangxi Yadong Cement Co., Ltd. (JYDC)
OIHPL
Wuhan Yadong Cement Co., Ltd. (WYDC)
Oriental Holdings Co., Ltd. (OHC)
Shanghai Yali Cement Products Co., Ltd. (SHYLCP)
Hubei Yadong Cement Co., Ltd. (HYDCCL)
Sichuan Yali Concrete Produce Co., Ltd. (SYCPCL)
Sichuan Yali Transport Co., Ltd. (SYTCL)
Yangzhou Yadong Cement Co., Ltd. (YYDCCL)
Sichuan Yadong Cement Co., Ltd. (SIYDCCL)
Chengdu Yali Cement Products Co., Ltd. (CYCPCL)
Huanggang Yadong Cement Co., Ltd. (HGYDC)
JYDC
Jiangxi Yali Transport Co., Ltd. (JYLTC)
Nanchang Yadong Cement Co., Ltd. (NYDC)
Nanchang Yali Concrete Produce Ltd. (NYLC)
Ruichang Yadong New Material Co., Ltd. (RYNM)
OHC
JYDC
WYDC
NYDC
JYLTC
SHYLCP
SYTCL
SIYDCCL
HGYDC
YYDCCL

Proportion of Ownership
and Voting Rights
December 31
2021
2020
Remark
69.95%
69.95%
Note 8
100.00%
100.00%
-
-
Note 9
95.04%
95.04%
71.68%
71.68%
99.94%
99.94%
Note 8
0.20%
0.20%
0.01%
0.01%
0.00%
0.00%
0.02%
0.02%
0.02%
0.02%
0.38%
0.38%
0.03%
0.03%
0.05%
0.05%
0.07%
0.07%
0.00%
0.00%
100.00%
100.00%
Notes 3
and 5
100.00%
100.00%
Notes 3
and 5
100.00%
100.00%
Notes 3
and 5
100.00%
100.00%
Notes 3
and 5
100.00%
100.00%
Notes 3
and 5
-
-
Note 9
99.99%
99.99%
4.96%
4.96%
100.00%
100.00%
4.07%
4.07%
100.00%
100.00%
100.00%
100.00%
99.99%
99.99%
85.00%
85.00%
90.00%
90.00%
100.00%
100.00%
90.00%
90.00%
90.00%
90.00%
90.00%
90.00%
90.00%
90.00%
90.00%
90.00%
90.00%
90.00%
51.22%
51.22%
90.00%
90.00%
52.00%
52.00%
Note 8
50.00%
50.00%
100.00%
100.00%
100.00%
100.00%
10.00%
10.00%
10.00%
10.00%
25.00%
25.00%
48.00%
48.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
(Continued)

36 -

Investor
Subsidiary
CYCPCL
HYDCCL
SYCPCL
Tai Zhou Oriental Construction Co., Ltd. (TZOCCL)
WYDC
Wuhan Yali Cement Products Co., Ltd. (WYCPCL)
SIYDCCL
Sichuan Lanfeng Cement Co., Ltd. (SLCL)
SLCL
Sichuan Lanfeng Construction Co., Ltd. (SLCCL)
HYDCCL
Hubei Yali Transport Co., Ltd. (HYTCL)
Wuhan Yaxin Cement Co., Ltd. (WYXC)
KCC
Kowloon Concrete Corporation Limited (KCCL)
Join Fortune Trading Ltd. (JFTL)

Proportion of Ownership
and Voting Rights
December 31
2021
2020
Remark
48.78%
48.78%
10.00%
10.00%
10.00%
10.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
90.00%
90.00%
100.00%
100.00%
100.00%
100.00%
Note 4
(Concluded)

Remarks:

Note 1: Subsidiaries that have material non-controlling interests. See Table 8 for the information on the places of incorporation and principal places of business.
Note 2: In the third quarter of 2021, the Corporation’s subsidiary, DCI, fully subscribed for cash capital increase of its subsidiaries, ACP, ACM, ACM II, ACM III, and ACM Ⅳ , for US$10,000 thousand, respectively.
Note 3: In the third quarter of 2021, the Corporation’s sub-subsidiary, AIC, fully subscribed for cash capital increase of its subsidiaries, ACE, ACP, ACP Ⅱ , ACP Ⅲ , and ACP Ⅳ , for US$10,000 thousand, respectively.
Note 4: In the third quarter of 2020, the Corporation’s sub-subsidiaries, JFTL, ACL, ACM, ACM II, ACM Ⅲ, and ACM Ⅳ, underwent capital reduction in the amounts of HK$4,323 thousand, US$9,800 thousand, US$9,900 thousand, US$700 thousand, US$700 thousand and US$9,900 thousand, respectively.
Note 5: In the third quarter of 2020, the Corporation’s sub-subsidiaries, ACE, ACP, ACP II, ACP Ⅲ , and ACP Ⅳ , underwent capital reduction in the amounts of US$10,700 thousand, US$10,000 thousand, US$10,200 thousand, US$10,200 thousand and US$9,900 thousand, respectively.
Note 6: From March to December 2021, the Corporation acquired non-controlling interests in its subsidiaries, including ACSPL, CHP, YTRMC, YLPPC, FMT and AEE; refer to Note 32 for the details.
Note 7: From April to December 2020, the Corporation acquired non-controlling interests in its subsidiaries, including CHP, YTRMC, DCI, FMT, NHC, AEE, YLT and YLPPC; refer to Note 32.
Note 8: From July to December 2020, YTRMC, FMT and JYDC acquired non-controlling interests in their subsidiaries, YSRMC, FDT, and JYLTC, refer to Note 32.
Note 9: On December 25, 2020, the Corporation’s subsidiaries, YTRMC and YLPPC, sold their interests in sub-subsidiary, PYCI, and the loss recognized from the disposal was $58,871 thousand.
b. Subsidiaries excluded from the consolidated financial statements: None.
37 -
c. Details of subsidiaries that have material non-controlling interests

Principal Place of Business Refer to Tables 7 and 8 Profit (Loss) Allocated to Non-controlling Interests For the Year Ended December 31 2021 2020 $ 2,380,049 $ 3,540,600 79,500 522,721 $ 2,459,549 $ 4,063,321	Proportion of Ownership and Voting Rights Held by Non-controlling Interests	Proportion of Ownership and Voting Rights Held by Non-controlling Interests
	December 31
	2021 2020 28.00% 28.00% Accumulated Non-controlling Interests

	December 31
2021 $ 2,380,049 79,500 $ 2,459,549	2021 $ 22,535,625 810,338 $ 23,345,963	2020 $ 21,344,668 773,725 $ 22,118,393

Summarized financial information in respect of each of the Group’s subsidiaries that has material non-controlling interests is set out below. The summarized financial information below represents amounts before intragroup eliminations.

ACCHC and its subsidiaries:

Current assets Non-current assets Current liabilities Non-current liabilities Equity Equity attributable to: Owners of the Corporation Non-controlling interests of ACCHC Non-controlling interests of ACCHC’s subsidiaries Revenue Profit for the year Other comprehensive income (loss) for the year Total comprehensive income for the year		December 31	December 31
	2021 2020 $ 47,290,494 $ 46,509,962 44,909,405 47,646,022 13,790,922 18,875,249 2,420,493 3,349,676 $ 75,988,484 $ 71,931,059 $ 53,452,859 $ 50,586,391 20,787,223 19,672,485 1,748,402 1,672,183 $ 75,988,484 $ 71,931,059 For the Year Ended December 31
		2021 $ 51,156,624 $ 7,903,196 (208,383) $ 7,694,813	2020 $ 46,481,228 $ 11,743,520 965,782 $ 12,709,302 (Continued)

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Profit attributable to: Owners of the Corporation Non-controlling interests of ACCHC Non-controlling interests of ACCHC’s subsidiaries Total comprehensive income attributable to: Owners of the Corporation Non-controlling interests of ACCHC Non-controlling interests of ACCHC’s subsidiaries Dividends paid to non-controlling interest ACCHC ACCHC’s subsidiaries	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 5,523,147 2,147,890 232,159 $ 7,903,196 $ 5,373,111 2,089,543 232,159 $ 7,694,813 $ 974,806 $ 146,350	2020 $ 8,202,920 3,190,025 350,575 $ 11,743,520 $ 8,898,283 3,460,444 350,575 $ 12,709,302 $ 907,857 $ 343,119 (Concluded)

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Investments in associates Investments in joint ventures a. Investments in associates Material associates Listed shares FENC U-Ming Marine Transport Corp. (U-Ming) CSCGL		December 31	December 31
		2021 2020 $ 87,366,536 $ 84,323,883 741,650 549,352 $ 88,108,186 $ 84,873,235 December 31
		2021 $ 41,129,452 10,490,805 16,266,895 67,887,152	2020 $ 41,566,417 9,379,683 14,380,609 65,326,709 (Continued)

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Associates that are not individually material Unlisted shares Far Eastern Construction Co., Ltd. (FEC) Yuan Ding Co., Ltd. (YDC) Yuan Ding Enterprise (Shanghai) (YDES) Yue Yuan Investment Corp. (YYI) Oriental Securities Corp. (OSC) Yue Ding Enterprise Corp. (YDEC) FEDS Development Ltd. (FEDSDL) Yuan Ding Leasing Corp. (YDLC) Drive Catalyst SPC - SP Tranche Three (Catalyst Tranche Three) Drive Catalyst SPC - SP Tranche Two (Catalyst Tranche Two) Drive Catalyst SPC - SP Tranche One (Catalyst Tranche One) Everstrong Iron & Steel Foundry Ltd. (EISF) Hubei Zhongjian Yadong Concrete Co., Ltd. (HZYCCL) Pao-Good Industry Co., Ltd. (PGIC) Opas Fund Segregated Portfolio Company (OFSPC) Drive Catalyst SPC (Catalyst) Perez-Mtec-ACC, LLC (PMA)		December 31	December 31
		2021 5,163,484 4,365,810 2,893,066 2,584,547 2,016,395 719,223 640,234 377,521 235,904 116,675 111,512 105,011 92,380 55,617 1,498 467 40 19,479,384 $ 87,366,536	2020 4,935,305 4,441,817 3,038,347 2,453,784 1,942,089 695,211 634,350 377,260 127,392 - 106,171 100,653 90,194 52,544 1,538 479 40 18,997,174 $ 84,323,883 (Concluded)

At the end of the reporting period, the percentages of owners’ voting rights in associates held by the Group were as follows:

Name of Associate FENC U-Ming CSCGL FEC YDC YDES YYI OSC YDEC FEDSDL YDLC Catalyst Tranche Three Catalyst Tranche Two Catalyst Tranche One EISF HZYCCL PGIC OFSPC Catalyst PMA	December 31
	2021 2020 25.72% 25.74% 41.41% 41.41% 17.46% 17.46% 33.76% 33.76% 49.99% 49.99% 40.00% 40.00% 29.92% 29.92% 18.93% 18.93% 30.84% 30.84% 25.00% 25.00% 43.60% 43.60% 25.00% 25.00% 25.00% - 25.00% 25.00% 48.73% 48.73% 40.00% 40.00% 31.00% 31.00% 33.00% 33.00% 33.00% 33.00% 33.33% 33.33%

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The Group is the single largest shareholder with 41.41% and 25.72% of the voting rights of associates, U-Ming and FENC, respectively. Considering the size of the Group’s holding of voting rights relative to the size and dispersion of holdings of the other shareholders and the voting patterns at previous shareholders’ meetings, which indicate that other shareholders are not passive, the Group is not able to appoint more than half of the members of those charged with governance of U-Ming and FENC. Consequently, the Group considered and classified U-Ming and FENC as associates of the Group as it is merely able to exercise significant influence over U-Ming and FENC.

Due to the liquidation of SHSTC in 2019, the Corporation’s subsidiaries, DCI and NHC, received cash refund of capital stock in the amount of $2,774 thousand, and the Corporation recognized gains on disposal of investments of $2,774 thousand for the years ended December 31, 2020.

In April 2021, the Corporation’s subsidiary DCI subscribed for 4,000 new shares in the amount of US$4,000 thousand of both Catalyst Tranche Two and Catalyst Tranche Three. After the subscription, DCI owned 25% of the shares of both associates.

On February 18, 2019 and June 30, 2019, ACCHC subscribed for YDES’s cash capital increase in the amount of RMB714,190 thousand through its subsidiary OHC; after the subscription, ACCHC’s percentage of ownership in YDES was 40%. Included in the cost of investment in associates is goodwill of RMB53,340 thousand recognized from the acquisition. As of December 31, 2021, the Group carried out an impairment test on its investment in YDES by comparing the recoverable amount with the carrying amount. The Group determined the recoverable amount on the basis of its value in use. Based on the assessment, the recoverable amount of the Group’s interest in YDES was lower than the carrying amount; therefore, impairment loss of RMB53,340 thousand (NT$231,725 thousand) was recognized on the Group’s investments in associates for the year ended December 31, 2021.

As of December 31, 2021 and 2020, the information of associates was as follows:

1) Fair values (Level 1) of investments in associates with available published price quotation are summarized as follows:

Name of Associate FENC U-Ming CSCGL		December 31	December 31
		2021 $ 40,329,561 $ 21,134,854 $ 5,243,774	2020 $ 39,884,286 $ 12,911,856 $ 5,068,493

2) The summarized financial information in respect of the Group’s material associates is set out below:

FENC:

Current assets Non-current assets Current liabilities Non-current liabilities Equity Proportion of the Group’s ownership Equity attributable to the Group Cross shareholdings Carrying amount		December 31	December 31
		2021 $ 33,457,578 300,018,280 22,641,821 104,785,302 206,048,735 25.72% 52,995,735 (11,866,283) $ 41,129,452	2020 $ 30,257,013 296,195,063 22,380,382 100,042,507 204,029,187 25.74% 52,517,113 (10,950,696) $ 41,566,417

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For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	2021 2020 $ 45,527,236 $ 38,768,801 $ 9,684,584 $ 8,062,699 (515,037) (26,143) $ 9,169,547 $ 8,036,556 $ 1,859,900 $ 2,066,555 December 31
2021 2020 $ 2,156,201 $ 2,088,840 51,659,693 47,537,505 14,284,980 14,349,470 13,672,196 12,101,381 25,858,718 23,175,494 41.41% 41.41% 10,708,095 9,596,972 $ (87,524) $ (87,523) (129,766) (129,766) $ 10,490,805 $ 9,379,683 For the Year Ended December 31
	2021 $ 1,660,430 $ 4,892,584 (1,194,945) $ 3,697,639 $ 419,899	2020 $ 1,039,426 $ 878,425 (2,941,713) $ (2,063,288) $ 664,840

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CSCGL and its subsidiaries:

Current assets Non-current assets Current liabilities Non-current liabilities Non-controlling interests Equity attributable to CSCGL Proportion of the Group’s ownership Equity attributable to the Group Goodwill Quarry right Carrying amount Operating revenue Net profit for the year Other comprehensive income Total comprehensive income for the year		December 31	December 31
	2021 2020 $ 33,743,814 $ 31,277,287 91,774,378 89,317,484 40,489,814 42,872,156 3,755,805 8,522,285 1,151,223 780,884 80,121,350 68,419,446 17.46% 17.46% 13,969,887 11,927,957 1,856,015 1,856,015 440,993 596,637 $ 16,266,895 $ 14,380,609 For the Year Ended December 31
		2021 $ 107,127,471 $ 12,575,968 48,130 $ 12,624,098	2020 $ 89,543,906 $ 14,034,527 93,155 $ 14,127,682

3) Aggregate information of associates that are not individually material:

The Group’s share of: Profit for the year Other comprehensive (loss) income Total comprehensive income for the year	For the Year Ended	For the Year Ended	December 31
		2021 $ 507,333 368,443 $ 875,776	2020 $ 847,607 (122,722) $ 724,885

4) The amounts of investments in associates pledged as collateral for bank borrowings are disclosed in Note 36.

b. Investments in joint ventures that are not individually material:

Unlisted companies Alliance Concrete Singapore Pte. Ltd. (Alliance) Wuhan Asia Marine Transport Co., Ltd. (WAMTC) Hubei Xinlongyuan Mining Co., Ltd. (HXMC) Jiangxi Ruiya New Materials Co., Ltd. (JRNMC) Profit Enterprises Int’l Ltd. (PEI)		December 31	December 31
		2021 $ 445,899 221,758 51,526 18,164 4,303 $ 741,650	2020 $ 281,236 210,239 53,437 - 4,440 $ 549,352

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At the end of the reporting period, the percentages of owners’ voting rights in joint ventures held by the Group were as follows:

Name of Joint Ventures Alliance WAMTC HXMC JRNMC PEI	December 31
	2021 2020 50.00% 50.00% 50.00% 50.00% 40.00% 40.00% 45.00% - 50.00% 50.00%

Aggregate information of joint ventures that are not individually material:

The Group’s share of: Income for the year Other comprehensive income Total comprehensive income for the year	For the Year Ended	For the Year Ended	December 31
		2021 $ 249,442 $ 249,442	2020 $ 127,251 - $ 127,251

All the associates and joint ventures are accounted for using the equity method.

Due to the liquidation of ESC in the third quarter of 2020, the Corporation’s sub-subsidiary JFTL received cash refund of capital stock in the amount of HK$4,323 thousand for the year ended December 31, 2020.

In the first quarter of 2021, the Group incorporated JRNMC, which is engaged in the manufacturing and sale of gravel, under a joint venture agreement with the municipal government of Ruichang City. According to the agreement, operation policy decisions should be made by unanimous agreement of the shareholders of both entities. The Group has no right to obtain the variable rewards which is unavailable to the other shareholders and does not have direct ability to affect the rewards from investing in JRNMC. As a result, the Group has no control over JRNMC.

In the second quarter of 2021, the Corporation’s joint venture PEI carried out a capital reduction of HK$9,761 thousand to cover its accumulated deficit.

Refer to Table 7 “Information on Investees” and Table 8 “Information on Investments in Mainland China” for the nature of activities, principal place of business and country of incorporation of the associates and joint ventures

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15. PROPERTY, PLANT AND EQUIPMENT

Assets Used By the Group

Cost Balance at January 1, 2020 Additions Disposals Transferred from supplies Transferred to intangible assets Transferred from completed construction Reclassified Disposal of subsidiary Effect of foreign currency exchange differences Balance at December 31, 2020 Accumulated depreciation and impairment Balance at January 1, 2020 Depreciation expense Impairment losses Disposals Reclassified Disposal of subsidiary Effect of foreign currency exchange differences Balance at December 31, 2020 Carrying amounts at December 31, 2020 Cost Balance at January 1, 2021 Additions Disposals Transferred to intangible assets Transferred to inventories Transferred to finance lease receivables Transferred from completed construction Effect of foreign currency exchange differences Balance at December 31, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Depreciation expense Impairment losses Disposals Effect of foreign currency exchange differences Balance at December 31, 2021 Carrying amounts at December 31, 2021	Land $ 6,592,017 502,149 - - - - - - - 7,094,166 12,595 - - - - - - 12,595 $ 7,081,571 $ 7,094,166 210 - - - - 1,233 - 7,095,609 12,595 - - - - 12,595 $ 7,083,014	Buildings $ 24,161,562 27,978 (135,097 ) - - 338,061 - - 267,578 24,660,082 10,095,645 620,262 - (91,035 ) - - 75,790 10,700,662 $ 13,959,420 $ 24,660,082 14,505 (74,413 ) - - - 2,910 (127,816 ) 24,475,268 10,700,662 628,737 - (48,487 ) (52,528 ) 11,228,384 $ 13,246,884	Equipment O $ 73,487,784 100,501 (862,658 ) - (9,034 ) 803,694 6,152 (2,748 ) 774,229 74,297,920 51,105,580 3,029,445 - (695,593 ) 2,201 (1,323 ) 502,306 53,942,616 $ 20,355,304 $ 74,297,920 35,143 (337,027 ) - - - 930,779 (307,979 ) 74,618,836 53,942,616 3,025,822 62,216 (279,268 ) (208,719 ) 56,542,667 $ 18,076,169	ther Equipment Property Under Construction $ 12,347,046 $ 5,569,372 208,159 5,382,313 (540,971 ) - 2,837 - - (5,195 ) 347,936 (1,489,691 ) (6,152 ) - (57,378 ) - 45,993 5,720 12,347,470 9,462,519 10,262,680 - 597,572 - 13,212 - (490,034 ) - (2,201 ) - (21,197 ) - 26,040 - 10,386,072 - $ 1,961,398 $ 9,462,519 $ 12,347,470 $ 9,462,519 294,665 3,273,019 (477,139 ) - - (62,643 ) - (6,274 ) - (10,363,717 ) 345,305 (1,280,227 ) (20,155 ) (3,098) 12,490,146 1,019,579 10,386,072 - 553,992 - 9,195 - (450,884 ) - (14,315) - 10,484,060 - $ 2,006,086 $ 1,019,579	Total $ 122,157,781 6,221,100 (1,538,726 ) 2,837 (14,229 ) - - (60,126 ) 1,093,520 127,862,157 71,476,500 4,247,279 13,212 (1,276,662 ) - (22,520 ) 604,136 75,041,945 $ 52,820,212 $ 127,862,157 3,617,542 (888,579 ) (62,643 ) (6,274 ) (10,363,717 ) - (459,048 ) 119,699,438 75,041,945 4,208,551 71,411 (778,639 ) (275,562 ) 78,267,706 $ 41,431,732

Because the nature of CHP’s Purchase and Sale Contracts of Phase II power plant with TPC are considered as conveyance of rights to use asset, the contracts are regarded as finance leases. Consequently, the property, plant and equipment of the Phase II power plant was reclassified to finance lease receivables from its commercial operations date, refer to Note 11 for the details.

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The above items of property, plant and equipment are depreciated on a fixed-percentage-on-decliningbalance basis or on a straight-line basis over the estimated useful life of the asset taken apart into major component elements:

Building Main buildings 15-60 years Other facilities 2-30 years Equipment 2-20 years Other equipment 2-15 years

As of December 31, 2021, the titles of land with carrying amount of $89,019 thousand were temporarily registered in the name of trustees who had either signed an agreement or had pledged the land to the Corporation or to the subsidiaries.

Refer to Note 36 for the carrying amount of property, plant and equipment pledged by the Group as collaterals for borrowings.

16. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amounts Land Buildings Equipment Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings Equipment		December 31	December 31	December 31
	2021 2020 $ 3,432,330 $ 3,522,407 796,769 859,273 527,065 557,283 $ 4,756,164 $ 4,938,963 For the Year Ended December 31
			2021 $ 407,107 $ 163,020 83,749 155,743 $ 402,512	2020 $ 312,397 $ 140,637 83,890 156,882 $ 381,409

b. Lease liabilities

Carrying amounts Current Non-current		December 31	December 31
		2021 $ 187,274 $ 1,084,452	2020 $ 222,101 $ 1,158,824

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Range of discount rate for lease liabilities was as follows:

Land Buildings Equipment	December 31
	2021 2020 1.06%-4.75% 1.06%-3.50% 1.30%-4.90% 1.30%-4.90% 1.10%-3.00% 1.17%-3.00%

c. Material lease-in activities and terms

The Group leases harbors, land, buildings and equipment for the use in business operations and has obtained land use rights in mainland China, Hong Kong, Singapore and Vietnam. Certain lease contracts specify that lease payment will be adjusted on the basis of changes in market rental rates or announced land value prices. The Group does not have bargain purchase options to acquire the leasehold assets at the end of the lease terms.

d. Other lease information

Lease arrangements under operating leases for the leasing out of investment properties are set out in Note 17. Lease arrangements for the leasing out of assets under finance leases are set out in Note 11.

Expenses relating to short-term leases Expenses relating to low-value asset leases Expenses relating to variable lease payments not included in the measurement of lease liabilities Total cash outflow for leases	For the Year Ended	For the Year Ended	December 31
		2021 $ 250,262 $ 776 $ 69,181 $ 818,513	2020 $ 205,662 $ 699 $ 61,940 $ 618,429

The Group has elected to apply the recognition exemption and, thus, did not recognize right-of-use assets and lease liabilities for leases that qualify as short-term leases or low-value asset leases.

17. INVESTMENT PROPERTIES

Measured at fair value Leased investment properties Undeveloped investment properties		December 31	December 31
		2021 $ 30,525,678 6,317,952 $ 36,843,630	2020 $ 30,332,308 6,256,940 $ 36,589,248

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Balance at January 1, 2020 Changes in fair value of investment properties Effect of foreign currency exchange differences Additions Write-off accounts receivable Reclassifications Balance at December 31, 2020 Balance at January 1, 2021 Changes in fair value of investment properties Effect of foreign currency exchange differences Additions Write-off accounts receivable Reclassifications Balance at December 31, 2021	Leased Investment Property $ 29,954,068 365,844 2,401 2,343 - 7,652 $ 30,332,308 $ 30,332,308 215,801 (759) 3,035 - (24,707) $ 30,525,678	Undeveloped Investment Property $ 6,222,371 (127,988) 4,562 - 165,647 (7,652) $ 6,256,940 $ 6,256,940 28,500 (1,726) - 9,531 24,707 $ 6,317,952	Total $ 36,176,439 237,856 6,963 2,343 165,647 - $ 36,589,248 $ 36,589,248 244,301 (2,485) 3,035 9,531 - $ 36,843,630

The investment properties for lease were as follows:

a. On January 1, 1998, the Corporation granted FEDSDL the right to construct a shopping center on a parcel of land it owned with an area of 6,976 square meters located in Lin-Ya, Kaohsiung. As consideration for the right to construct and the continued use of the land for fifty years, FEDSDL shall pay the following: (a) land use rights in the amount of $1,073,000 thousand and (b) annual rental at 5% of the reference price of such land announced by the local government. The proceeds of the land use rights were recorded as long-term deferred revenue and recognized as rental revenue on a periodic basis.
b. The Corporation and Far Eastern Resources Development Co. (FERD) equally owned a parcel of land located at Tun Hwa South Road, Taipei City. Under an agreement entered into with YDC, the Corporation and FERD had agreed on the following: (a) construction of a twin tower building (Taipei Metro) by YDC on the said land, (b) continued use of the land without additional compensation for 30 years starting from the date of the completion of the building. In view of the foregoing agreement, the Corporation recorded the 12% of the building construction cost or $1,402,753 thousand as building acquired and as long-term deferred revenue, and recognized as revenue on a periodic basis.
c. Others mainly included the following:
1) Asia-Cement Building held by the Corporation - leased to FEDS;
2) Pao-Ching Building held by the Corporation - leased to Sofiva Genomics;
3) Land and building in Chiayi City held by the Corporation;
4) Buildings in Sichuan held by SIYDCCL

The lease terms of the abovementioned land and buildings are 1-10 years, and the rents are paid monthly.

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The Group’s undeveloped investment properties included a parcel of land located in Lin-Ya, Kaohsiung, as well as stores, apartments, and office buildings acquired by SIYDCCL, HYDCCL and SHYLCP as collaterals for overdue balances from customers.

The fair values of investment properties were valued by independent qualified professional appraisers. According to local requirements, entities are required to have independent appraisal for the investment properties with individual carrying amount of $300 million or higher. The fair values of investment properties as of December 31, 2021 and 2020 were determined by qualified professional appraisers, Mr. Chang from Savills (Taiwan) Limited and Mr. Tsai and Ms. Hu from DTZ real estate appraisers firm on February 23, 2022 and March 2, 2021, respectively.

The fair value of investment properties was estimated using unobservable inputs (Level 3). The movements in the fair value were as follows:

Balance at January 1, 2020 Recognized in profit or loss (gain or loss from changes in fair value of investment property) Recognized in other comprehensive income Exchange differences on translating the financial statements of foreign operations Purchases Transfers into Level 3 Reclassified Balance at December 31, 2020 Balance at January 1, 2021 Recognized in profit or loss (gain or loss from changes in fair value of investment property) Recognized in other comprehensive income Exchange differences on translating the financial statements of foreign operations Purchases Transfers into Level 3 Reclassified Balance at December 31, 2021	Completed Investment Property Investment Property under Construction $ 29,954,068 $ 6,222,371 365,844 (127,988) 2,401 4,562 2,343 - - 165,647 7,652 (7,652) $ 30,332,308 $ 6,256,940 $ 30,332,308 $ 6,256,940 215,801 28,500 (759) (1,726) 3,035 - - 9,531 (24,707) 24,707 $ 30,525,678 $ 6,317,952	Total $ 36,176,439 237,856 6,963 2,343 165,647 - $ 36,589,248 $ 36,589,248 244,301 (2,485) 3,035 9,531 - $ 36,843,630

The fair value measurement of undeveloped land located in Lin-Ya, Kaohsiung, was measured by land development analysis. The increase in estimated total selling price, the increase in rate of return, or the decrease in overall capital interest rate would result in an increase in the fair value. The significant assumptions used were as follows:

Estimated total selling price Rate of return Overall capital interest rate		December 31	December 31
		2021 $ 20,255,823 20% 5.19%	2020 $ 19,492,803 22% 5.29%

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The total selling price is estimated on the basis of the most effective use of the land or property available for sale after development is completed, taking into account the related regulations, domestic macroeconomic prospects, local land use, and market rates.

The fair value of investment properties, except for undeveloped land, was measured using the income approach. The significant assumptions used were stated below. The increase in estimated future net cash inflows or the decrease in discount rates would result in increase in the fair value.

Expected future cash inflows Expected future cash outflows Expected future cash inflows, net Discount rate		December 31	December 31
		2021 $ 36,612,955 1,652,051 $ 34,960,904 1.97%-6.00%	2020 $ 36,137,274 1,561,604 $ 34,575,670 1.98%-6.00%

The above fair value measurement has taken into consideration the uncertainty on the volatility in the markets due to the evolution of the COVID-19 pandemic.

The market rentals in the area where the investment properties are located were between $1 thousand and $5 thousand per ping (i.e., per 3.3 square meters).

The rental income generated for the years ended December 31, 2021 and 2020 was $352,158 thousand and $360,739 thousand, respectively.

The expected future cash inflows to be generated by investment properties include rental income, interest income on rental deposits and disposal value. The rental income was extrapolated using the Group’s current rental contract, regional and market quotation, taking into account the annual rental growth rate; the income analysis covers a 10-year period, the interest income on rental deposits was extrapolated using the interest rate for one-year central bank-announced demand deposit interest rate; the disposal value was determined using the direct capitalization method under the income approach. The expected future cash outflows to be incurred by investment properties include expenditure such as land value taxes, house taxes, insurance premium, management costs, maintenance costs and others. These expenditures were extrapolated on the basis of the current level of expenditure, taking into account the future adjustment to the government-announced land value, and the tax rate promulgated under the House Tax Act.

The discount rate was determined by reference to the interest rate for two-year time deposits as posted by Chunghwa Post Co., Ltd., plus 0.75%, or estimated income capitalization rate, whichever is higher, as well as any asset-specific risk premiums. As of December 31, 2021 and 2020, the risk premiums were 0.38%-4.41% and 0.39%-4.41%, respectively.

Refer to Note 36 for the carrying amount of investment properties pledged by the Group as collaterals for borrowings.

18. INTANGIBLE ASSETS - GOODWILL

Cost Balance at January 1 Effect of foreign currency exchange differences Balance at December 31	2021 $ 2,435,685 (13,024) $ 2,422,661	2020 $ 2,398,644 37,041 $ 2,435,685

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The goodwill comprised of the following:

a. In April 2014, SYDCCL acquired 100% ownership of SLCL. The investment cost in excess of the fair value of net identifiable assets of the investee was the amount of goodwill, which was RMB554,241 thousand.
b. On December 31, 2014, the Corporation acquired control power over YLT. The investment cost in excess of the fair value of net identifiable assets of the investee was the amount of goodwill, which was $20,780 thousand.

As of December 31, 2021 and 2020, the Group assessed that the recoverable amounts of the cash-generating units including the goodwill listed above were still higher than the related carrying amounts; thus, no impairment loss was recognized.

19. INTANGIBLE ASSETS - OTHERS

Quarry Right Cost Balance at January 1, 2020 $ 6,302,904 Additions 452,872 Disposals - Transferred from completed construction 1,032 Disposal of subsidiary - Effect of foreign currency exchange differences 104,054 Balance at December 31, 2020 6,860,862 Accumulated amortization and impairment Balance at January 1, 2020 2,057,778 Amortization expense 304,692 Disposals - Disposal of subsidiary - Effect of foreign currency exchange differences 37,103 Balance at December 31, 2020 2,399,573 Carrying amounts at December 31, 2020 $ 4,461,289	Computer Software $ 266,705 3,325 (58,907) 13,197 (93) 1,389 225,616 236,459 14,171 (57,021) (46) 1,066 194,629 $ 30,987	Others $ 414,502 - - - - 1,374 415,876 88,201 - - - 1,374 89,575 $ 326,301	Total $ 6,984,111 456,197 (58,907) 14,229 (93) 106,817 7,502,354 2,382,438 318,863 (57,021) (46) 39,543 2,683,777 $ 4,818,577 (Continued)

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Quarry Right Cost Balance at January 1, 2021 $ 6,860,862 Additions 64,054 Disposals (73,309) Transferred from completed construction 58,143 Effect of foreign currency exchange differences (36,568) Balance at December 31, 2021 6,873,182 Accumulated amortization and impairment Balance at January 1, 2021 2,399,573 Amortization expense 306,208 Disposals (5,783) Effect of foreign currency exchange differences (13,682) Balance at December 31, 2021 2,686,316 Carrying amounts at December 31, 2021 $ 4,186,866	Computer Software $ 225,616 10,597 (681) 4,500 (499) 239,533 194,629 12,767 (681) (391) 206,324 $ 33,209	Others $ 415,876 - - - (484) 415,392 89,575 - - (484) 89,091 $ 326,301	Total $ 7,502,354 74,651 (73,990) 62,643 (37,551) 7,528,107 2,683,777 318,975 (6,464) (14,557) 2,981,731 $ 4,546,376 (Concluded)

The above items of other intangible assets with finite useful lives are amortized on a straight-line basis. Quarry rights are amortized over 5 to 47 years and the computer software and others are amortized over 2 to 6 years. The other items with indefinite useful lives will not be amortized until their useful lives are determined to be finite. Instead, they will be tested for impairment annually and whenever there is an indication that they may be impaired.

According to the Plan for the Reform of the Mineral Resource Royalty System issued by the State Council of the People's Republic of China, proceeds from prospecting and mining rights shall be changed into proceeds from assignment of mining rights and shall be determined according to valuation and benchmark market prices under similar conditions, whichever is higher. The proceeds from the transfer of mining rights shall be determined at one time and paid in the form of monetary funds. The specific measures for payment shall be developed separately by the Ministry of Finance in conjunction with the Ministry of Land and Resources.

The Group finalized the independent valuation report in accordance with the aforementioned reform plans related to the mine reserves and the estimated amount of the provision of the mine reserve fund, which was capitalized into the cost of quarry. In addition, the Group was required to accrue the cost of production of the mine, which represented the quantity of the mine excavated times the agreed amount of unit cost for the current and past years, and such amount was charged on the cost of sales of the Group. As of December 31, 2021 and 2020, the fund payables of the mine reserve were both RMB299,724 thousand and were accounted for as accounts payable and accrued expenses - third parties, respectively.

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20. OTHER NON-CURRENT ASSETS

Prepaid investments Net defined benefit assets Refundable deposits Others Refundable deposits Current (accounted for as other current assets) Non-current		December 31	December 31
		2021 $ 1,588,689 2,755,775 203,069 54,589 $ 4,602,122 $ 114,422 $ 203,069	2020 $ 1,505,147 2,518,491 264,380 35,278 $ 4,323,296 $ 65,523 $ 264,380

The prepaid investments comprised of the following:

a. On March 23, 2017, the Corporation acquired 155 thousand issued shares of China Shanshui Investment Company Limited (CSI) in the amount of HK$577,662 thousand from six shareholders of CSI under a share purchase agreement. The Corporation already obtained the physical share certificates of the acquired shares of CSI. Pursuant to the Articles of Association of CSI, the share ownership can only be recorded on the register of shareholders if the board of directors of CSI approves the share transfer. The Corporation has submitted all necessary documents to CSI for registration of the share transfer, among which the registration of shares of CSI acquired from two of the six shareholders were completed and the related prepaid investments in the balance sheets were therefore reclassified to financial assets at FVTOCI - non-current.

In addition, Chan Hongqing, a PRC individual, claimed that the shares of CSI which the Corporation acquired from the other four shareholders were pledged as collaterals under a loan contract signed with him on August 17, 2015 and thus applied for arbitration with China International Economic and Trade Arbitration Commission in Beijing. Later, according to an order of the High Court of Hong Kong announced on June 27, 2017, it requested the appointment of interim receivers in respect of the shares of CSI held by the four shareholders until the end of the arbitral proceedings. On May 17, 2018, the High Court of Hong Kong set aside the order before the final award of the arbitration. The arbitral proceeding was therefore withdrawn on June 12, 2018.

On October 2, 2018, Chan Hongqing applied to the High Court of Hong Kong for interlocutory relief in another proceedings against the Corporation to prohibit the Corporation and the four CSI shareholders from transferring and registering their CSI shares. The application for interlocutory relief was heard in the High Court of Hong Kong on April 3, 2019 and was dismissed by the High Court of Hong Kong on March 16, 2021. In view of this order, the registration of share transfer by CSI’s board of directors will no longer be restricted to the above-mentioned application for interlocutory relief. On March 30, 2021, Chan Hongqing filed an appeal against the order made by the High Court of Hong Kong. However, the appeal had been rejected by the High Court of Hong Kong on September 23, 2020. Later, Chan Hongqing filed another appeal to Court of Appeal of Hong Kong on October 7, 2020. Both parties have submitted outlines of their arguments to the court. As of the date of the issue of consolidated financial statements, the Court of Appeal of Hong Kong has not yet made a judgment on the appeal.

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b. Chu Feng Power Corporation, Preparatory Office (Chu Feng) was founded in October 2016 by DCI, the Corporation’s subsidiary, for the development of offshore wind power in Taiwan. As of December 31, 2021 and 2020, the accumulated prepaid investments were $293,783 thousand and $210,241 thousand, respectively. In March 2018, Chu Feng submitted an application to the Bureau of Energy, Ministry of Economic Affairs, ROC, for the offshore wind power project’s selection but finally failed to win the tender offer. Later, on March 25, 2020, DCI’s board of directors resolved to enter into a joint venture agreement with Innogy Renewables Beteiligungs GmbH Company (“Innogy”), which was under restructure and renamed as RWE Renewables Beteiligungs GmbH in August 2020, to further develop Chu Feng offshore wind project. As of December 31, 2021 and 2020, DCI has received advance receipt for investment from Innogy in the amount of $150,000 thousand, which was accounted for as other non-current liabilities. In addition, the Group recognized the amounts paid within the preparatory period as other receivables or prepaid investments and also recognized full amounts of provisions based on the preparatory loss of Chu Feng; refer to Note 25.

21. SHORT-TERM BORROWINGS

Unsecured Secured Interest rate Final repayment date: Unsecured Secured		December 31	December 31
		2021 $ 22,399,570 1,300,000 $ 23,699,570 0.79%-3.15% 2022.12.20 2022.3.11	2020 $ 18,464,889 750,000 $ 19,214,889 0.78%-3.10% 2021.10.25 2021.3.31

22. SHORT-TERM BILLS PAYABLE

Commercial paper Less: Unamortized discounts on bills payable Interest rate (%)		December 31	December 31
		2021 $ 27,894,900 7,819 $ 27,887,081 0.25%-1.25%	2020 $ 13,888,400 6,452 $ 13,881,948 0.25%-1.21%

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23. LONG-TERM LIABILITIES

Bank loans Bonds Domestic bonds 1stunsecured bonds issued in 2016 1stunsecured bonds issued in 2019 2ndunsecured bonds issued in 2019 1stunsecured bonds issued in 2020 2ndunsecured bonds issued in 2020-A 2ndunsecured bonds issued in 2020-B 3rdunsecured bonds issued in 2020-A 3rdunsecured bonds issued in 2020-B 4thunsecured bonds issued in 2020-A 4thunsecured bonds issued in 2020-B 1stunsecured bonds issued in 2021 Overseas bonds 3rdEuro convertible bonds issued in 2018 Less: Current portion		December 31	December 31
		2021 $ 9,952,974 - 6,500,000 3,500,000 7,700,000 2,800,000 2,700,000 4,000,000 2,200,000 4,100,000 5,300,000 6,300,000 45,100,000 31,854 55,084,828 2,902,645 $ 52,182,183	2020 $ 17,715,404 3,000,000 6,500,000 3,500,000 7,700,000 2,800,000 2,700,000 4,000,000 2,200,000 4,100,000 5,300,000 - 41,800,000 6,370,305 65,885,709 16,140,876 $ 49,744,833

a. Bank loans are repayable in installments at varying amounts or in one lump-sum payment prior to April 3, 2039. The Group has signed long-term revolving credit facilities with banks. As of December 31, 2021 and 2020, interest rates were 0.67%-3.10% and 0.74%-3.30%, respectively.
b. Domestic bonds are repayable in installments at varying amounts or in one lump-sum on maturity prior to December 23, 2027. As of December 31, 2021 and 2020, interest rates were both 0.57%-0.88%.
c. In order to repay the debt, save interest expenses, and strengthen the Corporation’s financial structure, on September 21, 2018, the Corporation issued US$215,000 thousand (equivalent to NT$6,620,710 thousand), which is the third zero coupon Euro convertible bond due on 2023.

The terms of the zero coupon Euro convertible bonds included the following:

1) Final redemption

Unless previously redeemed, repurchased and canceled, or converted, the Bonds will be redeemed on the maturity date at the settlement equivalent of 100.6% of the unpaid principal amount thereof.

2) The bonds are convertible into the Corporation’s ordinary shares (“Shares”) at any time on or after December 21, 2018 and prior to the close of business on August 22, 2023. The initial conversion price was NT$42.24 per Share, determined on the basis of a fixed exchange rate of NT$30.794=US$1.00.
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3) Redemption at the option of the Corporation

At any time on or after September 21, 2021, the Corporation may redeem the bonds in whole, or from time to time in part, at the early redemption amount, if the closing price of the Shares, translated into U.S. dollars at the prevailing rate, during a period of 30 consecutive trading days, is at least 130% of the quotient of the early redemption amount divided by the number of Shares to be issued upon conversion of US$200,000 principal amount of the bonds on the applicable trading day based on the conversion price then in effect, translated into U.S. dollars at a fixed exchange rate of NT$30.794=US$1.00. Notwithstanding the foregoing, at any time, the Corporation may redeem the bonds in whole, but not in part, at the early redemption amount in U.S. dollars if at least 90% in principal amount of the bonds has already been redeemed, repurchased and cancelled, or converted.

4) Redemption at the option of the bondholders

Unless previously redeemed, repurchased and cancelled or converted, each holder will have the right to require the Corporation to redeem in whole or in part of the bonds held by such holder on September 21, 2021 at a redemption price equal to the settlement equivalent of 101.81% of the principal amount in U.S. dollars. Any U.S. dollar denominated amount payable in respect of the bonds will be converted into NT dollars using a fixed exchange rate and then converted back to a U.S. dollar amount using the applicable prevailing rate at the time of redemption.

5) The conversion price shall be subject to adjustment when there is occurrence of, including (but not limited to), the following:
a) Declaration of dividend in Shares or free distribution or bonus issue of Shares.
b) Subdivision, consolidation and reclassification of Shares.
c) Rights issues to shareholders.
d) Employee share bonus.
e) Warrants issued to holders of Shares.
f) Issues of rights or warrants for equity-related securities to holders of Shares.
g) Capital distributions, other distributions to shareholders.
h) Issue of convertible or exchangeable securities other than to holders of Shares or on exercise of warrants.
i) Other issues of Shares.
j) Issue of equity related securities.
k) Capital reduction.
l) Tender or exchange offer.
m) Any other event or circumstance which would have an effect analogous to any of the events in a) to l) above. The conversion price was NT$34.65 as of December 31, 2021.
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d. As of December 31, 2021, bondholders have converted the principal amount of US$213,940 thousand (equivalent to NT$6,588,068 thousand) of the 3[rd] Euro convertible bond into 184,125 thousand ordinary shares of the Corporation. After the conversion, the principal amount of the 3[rd] Euro convertible bond outstanding was US$1,060 thousand (equivalent to NT$32,642 thousand).
e. On January 22, 2019, CHP signed the syndicated loan agreement with 10 banks, including Bank of Taiwan. CHP may borrow up to $10,500,000 thousand under this loan agreement.

As of December 31, 2021, CHP’s credit lines used were as follows:

		Amount	Amount
Loan Item	Category	(In Thousands)		Interest Rate	Contract Period
A	Loan	NT$	4,800,000	1.797%	20 years
C	Commercial paper	NT$	2,450,000	1.253%	139 days
D	Contract bonding	NT$	165,000	0.450%	365 days
D	Contract bonding	US$	2,202	0.450%	365 days

The financial commitment that should be maintained by CHP under the payment terms are as follows:

1) Debt ratio as of year-end (total debt divided by total equity);
a) Under 200% from 2019 to 2023. b) Under 150% from 2024 to 2039.
2) Interest coverage ratio should be at least 150% from 2019 to 2039.

The above financial ratios are based on audited financial statements. Debt ratio and interest coverage ratio should be reviewed at least on annual basis.

24. DEFERRED REVENUE

Land use right Others Current Non-current		December 31	December 31
		2021 $ 654,582 117,399 $ 771,981 $ 75,912 696,069 $ 771,981	2020 $ 722,667 125,226 $ 847,893 $ 75,912 771,981 $ 847,893

a. The deferred revenue on land use rights in Lin-Ya, Kaohsiung granted to FEDSDL (Note 17) is amortized to income over 50 years on a straight-line basis.
b. The deferred revenue on land use rights of Taipei Metro granted to YDC (Note 17) is amortized to income over 30 years on a straight-line basis.
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25. PROVISIONS

Preparatory costs provisions (Note 20) Decommissioning of electric factory provisions Accrued reward provisions Compensation of traffic accident provisions Other provisions (Note 37) Current Non-current		December 31	December 31
		2021 $ 318,143 435,463 82,511 159,399 107,022 $ 1,102,538 $ 74,782 1,027,756 $ 1,102,538	2020 $ 260,080 384,216 132,511 143,707 47,240 $ 967,754 $ 52,000 915,754 $ 967,754

26. RETIREMENT BENEFIT PLANS

a. Defined contribution plans

The Corporation and the subsidiaries in the ROC adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, an entity makes monthly contributions to employees’ individual pension accounts at specific rate of monthly salaries and wages.

b. Defined benefit plans

The defined benefit plan adopted by the Corporation and domestic subsidiaries in accordance with the Labor Standards Act is operated by the government of the ROC. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the six months or last month before retirement. The Corporation and domestic subsidiaries contribute amounts equal to 2%-15% of total monthly salaries and wages to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name. Before the end of each year, the Group assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Group is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Group has no right to influence the investment policy and strategy.

The amounts included in the consolidated balance sheets in respect of the Group’s defined benefit plans were as follows:

Present value of defined benefit obligation Fair value of plan assets Deficit (surplus) Net defined benefit liabilities (asset)		December 31	December 31
		2021 $ 1,181,570 (3,806,396) (2,624,826) $ (2,624,826)	2020 $ 1,258,766 (3,604,068) (2,345,302) $ (2,345,302)

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Movements in net defined benefit liabilities (assets) were as follows:

	Present Value
	of the Defined		Net Defined
	Benefit	Fair Value of	Benefit
	Obligation	the Plan Assets	Liability (Asset)
Balance at January 1, 2020	$ 1,296,487	$ (3,668,667)	$ (2,372,180)
Service cost
Current service cost	14,752	-	14,752
Past service cost and gain on settlements	(552)	-	(552)
Net interest expense (income)	11,716	(35,805)	(24,089)
Recognized in profit or loss	25,916	(35,805)	(9,889)
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	32,727	32,727
Actuarial loss - changes in demographic
assumptions	328	-	328
Actuarial loss - changes in financial
assumptions	32,222	-	32,222
Actuarial loss - experience adjustments	11,238	-	11,238
Recognized in other comprehensive income	43,788	32,727	76,515
Contributions from the employer	-	(14,512)	(14,512)
Benefits paid	(107,425)	82,189	(25,236)
Balance at December 31, 2020	$ 1,258,766	$ (3,604,068)	$ (2,345,302)
Balance at January 1, 2021	$ 1,258,766	$ (3,604,068)	$ (2,345,302)
Service cost
Current service cost	14,287	-	14,287
Past service cost and gain on settlements	(1,794)	-	(1,794)
Net interest expense (income)	7,467	(25,664)	(18,197)
Recognized in profit or loss	19,960	(25,664)	(5,704)
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	(204,194)	(204,194)
Actuarial loss - changes in demographic
assumptions	950	-	950
Actuarial loss - changes in financial
assumptions	22,002	-	22,002
Actuarial gain - experience adjustments	(38,698)	-	(38,698)
Recognized in other comprehensive income	(15,746)	(204,194)	(219,940)
Contributions from the employer	-	(25,259)	(25,259)
Benefits paid	(81,410)	52,789	(28,621)
Balance at December 31, 2021	$ 1,181,570	$ (3,806,396)	$ (2,624,826)

Through the defined benefit plans under the Labor Standards Act, the Group is exposed to the following risks:

1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.
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2) Interest risk: A decrease in the corporate bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan’s debt investments.
3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The significant assumptions used for the purposes of the actuarial valuations were as follows:

Discount rates Expected rates of salary increase	December 31
	2021 2020 0.55%-0.70% 0.20%-0.90% 2.00%-2.50% 2.00%-2.50%

If possible reasonable change in each of the significant actuarial assumptions will occur and all other assumptions will remain constant, the present value of the defined benefit obligation would increase (decrease) as follows:

Discount rate 0.25% increase 0.25% decrease Expected rate of salary increase/decrease 1% increase 1% decrease		December 31	December 31
		2021 $ (23,517) $ 24,252 $ 97,480 $ (90,690)	2020 $ (26,002) $ 26,849 $ 108,245 $ (110,528)

The major categories of plan assets at the end of the reporting period are disclosed based on the information announced by the Bureau:

Equity instruments Deposited in financial institutions Others		December 31	December 31
		2021 76.39 15.43 8.18 100.00	2020 80.27 11.00 8.73 100.00

The sensitivity analysis presented above may not be representative of the actual change in the present value of the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Expected contributions to the plan for the next year Average duration of the defined benefit obligation		December	31
	2021 2020 $ 22,915 $ 10,601 3.4-10.0 years 4.0-10.2 years

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27. EQUITY

a. Share capital

Number of shares authorized (in thousands) Shares authorized Number of shares issued and fully paid (in thousands) Shares issued		December 31	December 31
		2021 4,000,000 $ 40,000,000 3,545,572 $ 35,455,721	2020 4,000,000 $ 40,000,000 3,361,447 $ 33,614,472

Fully paid ordinary shares, which have a par value of $10, carry one vote per share and carry a right to dividends.

The total of 350,000 thousand and 10,000 thousand shares of the Corporation’s authorized shares are reserved for the issuance of convertible bonds and employee share option, respectively.

The changes in the number of issued shares of the Corporation was due to the conversion of the convertible bond.

b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1) Donation Conversion of bonds The difference between consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition Change of capital surplus of associates and joint ventures accounted for using the equity method (2) May be used to offset a deficit only Change of capital surplus of associates and joint ventures accounted for using the equity method (3) May not be used for any purpose Share warrants Change of capital surplus of associates and joint ventures accounted for using the equity method		December 31	December 31
		2021 $ 41,790 4,681,389 56,000 979,032 5,758,211 162,274 915 64,939 65,854 $ 5,986,339	2020 $ 41,790 - 55,325 992,530 1,089,645 128,456 185,411 89,072 274,483 $ 1,492,584

1) Such capital surplus may be used to offset a deficit; in addition, when the Corporation has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Corporation’s capital surplus and to once a year).
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2) Such capital surplus from the effect of changes in associate’s ownership interest in its subsidiary that resulted from actual acquisition and disposal of equity may be used to offset a deficit or distributed as cash dividends or share dividends under Article 241-1 of Company Act.
3) Such capital surplus from the effect of changes in associate’s ownership interest in its subsidiary that resulted from equity transactions other than actual acquisition and disposal may be used to offset a deficit under Article 239-1 of Company Act.

c. Retained earnings and dividends policy

Under the dividends policy as set forth in the Corporation’s Articles of Incorporation (the “Articles”), apart from paying all its income taxes in the case where there are net incomes at the end of the year, the Corporation shall make up for accumulated losses in past years. Where there is still balance, the Corporation shall set aside 10% of the sum of said profit in balance and the amount of profit (or loss) items adjusted to the current year’s undistributed earnings other than the said profit as legal reserve and a special reserve as required by law. Subject to certain business conditions under which the Corporation may retain a portion of the remaining balance, the Corporation may distribute to the shareholders the remainder together with undistributed profits from previous years in proportion to the number of the shares held by each shareholder as shareholders’ dividend. However, in the case of increase in the Corporation’s share capital, the shareholders’ dividend to be distributed to the shareholders of increased shares for the year shall be decided by the shareholders’ meeting. For the policies on distribution of employees’ compensation and remuneration of directors, refer to employees’ compensation and remuneration of directors in Note 29(f).

The distribution of shareholders’ dividend shall take into consideration the changes in the outlook of the Corporation’s businesses, the lifespan of the various products or services that have an impact on future capital needs and taxation. Shareholders’ dividend shall be distributed with the aim of maintaining stable shareholders’ dividend distributions. Save for the purposes of improving the financial structure, reinvestments, production expansion or other capital expenditures in which capital is required, when distributing shareholders’ dividend, the dividend payout ratio each fiscal year shall be no less than 50% of the final surplus which is the sum of after-tax profit of the fiscal year to withhold previous loss, if any, legal reserve and special reserve as required by law; the cash dividend shall not be less than 10% of the total shareholders’ dividend distributed in the same year.

These appropriations shall be resolved by the shareholders in the following year and given effect to in the financial statements of that year.

The legal reserve may be used to offset deficits. If the Corporation has no deficit and the legal reserve has exceeded 25% of the Corporation’s paid-in capital, the excess may be transferred to capital or distributed in cash.

Pursuant to existing regulations, the Corporation is required to set aside additional special reserve equivalent to the net debit balance of the other equity interests and the net increase arising from the fair value measurement of investment properties. Any special reserve appropriated may be reversed to the extent that the net debit balance reverses, the cumulative net increases in fair value decrease or on disposal of investment properties and is thereafter distributed.

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The appropriation of earnings and dividends per share for 2020 and 2019 were approved in the shareholders’ meetings on July 23, 2021 and June 23, 2020, respectively, were as follows:

Legal reserve Special reserve Cash dividends Cash dividends per share (NT$)	Appropriation of Earnings	Appropriation of Earnings	Appropriation of Earnings
	For the Year Ended December 31
		2020 $ 1,310,348 $ 1,209,096 $ 11,933,138 $ 3.55 (Note)	2019 $ 1,745,968 $ 804,347 $ 10,084,341 $ 3.0

Note: Due to the conversion of the Corporation’s 3[rd] Euro convertible bond into ordinary shares, the number of outstanding ordinary shares increased accordingly. Therefore, the cash dividend was adjusted to NT$3.46283787 per ordinary share.

The appropriation of earnings for 2021 had been proposed by the Corporation’s board of directors on March 8, 2022. The proposed appropriation of earnings and dividend per share were as follows:

Legal reserve Special reserve Cash dividends Cash dividends per share (NT$)	For the Year Ended December 31, 2021 $ 1,534,939 $ 411,137 $ 12,054,945 $ 3.4

Assuming that the shares reciprocally held by associates were not treated as treasury shares and not deducted from weighted average number of shares outstanding, the basic EPS would be NT$4.25 for the year ended December 31, 2021.

The appropriations of earnings for 2021 are subject to the resolution of the shareholders’ meeting to be held on June 29, 2022.

d. Special reserve recognized at the date of transition

In the first-time adoption of IFRSs, the amounts of adjusted unrealized revaluation increments, cumulative translation adjustments and unappropriated earnings recognized from the investment properties of associates which used fair value as deemed cost were $10,715,430 thousand, $3,163,258 thousand and $52,494 thousand, respectively; the Corporation appropriated the amounts to special reserve.

In addition, on the initial application of the fair value model to investment properties, the Corporation appropriated to special reserve the amount of the net increase in fair value of investment properties and transferred it to retained earnings. Additional special reserve should be appropriated for subsequent net increases in fair value. The amount appropriated may be reversed to the extent that the cumulative net increases in fair value decrease or on the disposal of investment properties.

The Group and its associates used and disposed of some of the related assets; accordingly, special reserve reversed to unappropriated earnings amounted to $548,152 thousand as of December 31, 2021.

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e. Other equity items

1) Exchange differences on translating the financial statements of foreign operations

Balance at January 1 Exchange differences on translating the financial statements of foreign operations Share of exchange difference of associates and joint ventures accounted for using the equity method Balance at December 31 2) Unrealized gain (loss) on financial assets at FVTOCI	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ (6,108,955) (403,233) (899,687) $ (7,411,875)	2020 $ (5,913,201) 606,954 (802,708) $ (6,108,955)

For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
2021 2020 $ 6,414,159 $ 7,908,323 275,290 (976,509) 308,696 (542,950) (38,463) 27,885 (31,614) (2,590) $ 6,928,068 $ 6,414,159 For the Year Ended December 31
2021 $ 55,833 1,908 $ 57,741 For the Year Ended		2020 $ 52,141 3,692 $ 55,833 December 31
	2021 $ 716,970 194,724 (516) $ 911,178	2020 $ 385,214 331,756 - $ 716,970

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f. Non-controlling interests

Balance at January 1 Attributable to non-controlling interests: Share in profit for the year Other comprehensive income (loss) during the year Exchange difference on translating the financial statements of foreign operations Unrealized gain (loss) on financial assets at FVTOCI Remeasurement on defined benefit plans Related income tax Share of other comprehensive income (loss) of associates and joint ventures accounted for using the equity method Share of other changes in equity of associates and joint ventures accounted for using the equity method Acquisition of non-controlling interests in subsidiaries (Note 32) Changes in percentage of ownership interests in subsidiaries Cash dividends from subsidiaries Balance at December 31	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 22,118,393 2,459,549 (132,810) 327 1,143 (245) 44,642 $ 7 (2,499) - (1,142,544) $ 23,345,963	2020 $ 23,381,680 4,063,321 278,871 (1,749) (1,137) 240 (10,650) $ - (3,966,552) 20,704 (1,646,335) $ 22,118,393

28. OPERATING REVENUE

a. Revenue from contracts with customers

For the Year Ended December 31

Operating revenue Sales of goods Electric power revenue Transportation revenue Rental revenue Engineering revenue Income from investments Sale of investments Cost of investments sold Gain on sale of investments, net Dividends Total income from investments Less: Sales returns and discounts Total operating revenue, net	2021 $ 77,439,611 7,739,370 2,024,572 1,099,168 440,290 4,240,333 (3,701,584) 538,749 402,388 941,137 (29,435) $ 89,654,713	2020 $ 69,172,659 5,254,644 1,755,931 1,089,922 267,213 2,004,673 (1,698,130) 306,543 452,457 759,000 (58,489) $ 78,240,880

b. Contract balances

Contract assets Contract liabilities	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 188,287 $ 1,046,223	2020 $ 98,607 $ 1,117,842

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The changes in the balance of contract assets and contract liabilities primarily resulted from the timing difference between the Group’s satisfaction of performance obligations and the respective customer’s payment.

29. NET PROFIT

Net profit was as follows:

a. Other income

Dividends Government grants Others	For the Year Ended	For the Year Ended	December 31
		2021 $ 337,937 113,888 222,695 $ 674,520	2020 $ 334,024 417,006 248,526 $ 999,556

b. Other gains and losses

Net loss on financial assets and liabilities designated as at FVTPL Gain on changes in fair value of investment properties (Note 17) Impairment loss recognized on investments accounted for using the equity method Net foreign exchange losses Impairment loss recognized on right-of-use assets Bank charges Impairment loss recognized on property, plant and equipment Preparatory costs (Note 20) Loss on disposal of subsidiary (Note 13) Penalties (Note 38) Miscellaneous expenses Finance costs Interest on bank loans Amortization of discount on bonds payable Interest on lease liabilities Other interest expense Less: Amounts included in the cost of qualifying assets (capitalized interest)	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	2021 2020 $ (256,468) $ (240,993) 244,301 237,856 (231,725) - (161,955) (162,371) (118,569) - (71,561) (133,728) (71,411) (13,212) (58,063) (23,899) - (58,871) (983,519) - (949,925) (691,715) $ (2,658,895) $ (1,086,933) For the Year Ended December 31
		2021 $ 878,998 54,000 35,690 - (74,362) $ 894,326	2020 $ 1,131,684 89,497 47,564 2,339 (107,439) $ 1,163,645

c. Finance costs

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Information about capitalized interest was as follows:

Capitalized interest Capitalization rate	For the Year Ended	December 31
	2021 2020 $ 74,362 $ 107,439 0.653%-1.797% 0.652%-1.797%

d. Depreciation and amortization

An analysis of depreciation by function Operating costs Operating expenses Non-operating expenses An analysis of amortization by function Operating costs Operating expenses	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 4,369,040 236,766 5,257 $ 4,611,063 $ 248,467 70,508 $ 318,975	2020 $ 4,169,535 453,679 5,474 $ 4,628,688 $ 280,040 38,823 $ 318,863

e. Employee benefits expense

Post-employment benefits (Note 26) Defined contribution plans Defined benefit plans Short-term benefits Salary Remuneration of directors Labor and health insurance Other employees - related expenses Termination benefits Total employee benefits expense Post-employment benefits (Note 26) Defined contribution plans Defined benefit plans Short-term benefits Salary Remuneration of directors Labor and health insurance Other employees - related expenses Termination benefits Total employee benefits expense	For the Year Ended December 31, 2021	For the Year Ended December 31, 2021
	Operating Costs Operating Expenses Non-operating Expenses $ 177,865 $ 42,682 $ 403 (1,999) (3,705) - 3,323,842 925,382 9,526 - 195,833 - 189,907 49,106 494 156,895 104,871 - - - 529 $ 3,846,510 $ 1,314,169 $ 10,952 For the Year Ended December 31, 2020		Total $ 220,950 (5,704) 4,258,750 195,833 239,507 261,766 529 $ 5,171,631
	Operating Costs $ 54,381 (4,662) 3,043,658 - 155,213 132,893 - $ 3,381,483	Operating Expenses Non-operating Expenses $ 26,684 $ - (5,227) - 1,031,890 8,025 188,946 - 46,073 - 102,366 - - 2,268 $ 1,390,732 $ 10,293	Total $ 81,065 (9,889) 4,083,573 188,946 201,286 235,259 2,268 $ 4,782,508

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f. Employees’ compensation and remuneration of directors

According to the Corporation’s Articles, the Corporation accrued employees’ compensation and remuneration of directors at the rates between 0.1% and 4% and no higher than 2.5%, respectively, of net profit before income tax, employees’ compensation, and remuneration of directors. The employees’ compensation and remuneration of directors for the years ended December 31, 2021 and 2020, which have been approved by the Corporation’s board of directors on March 8, 2022 and March 25, 2021, respectively, were as follows:

Employees’ compensation Remuneration of directors	For the Year Ended December 31	For the Year Ended December 31
	2021 Cash Shares $ 185,109 $ - 161,970 -	2020
		Cash Shares $ 189,834 $ - 166,104 -

If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

There is no difference between the actual amounts of employees’ compensation and remuneration of directors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2020 and 2019.

Information on the employees’ compensation and remuneration of directors resolved by the Corporation’s board of directors at the Market Observation Post System website of the Taiwan Stock Exchange.

30. INCOME TAXES RELATING TO CONTINUING OPERATIONS

a. Major components of tax expense recognized in profit or loss

Current tax In respect of the current year Income tax on unappropriated earnings Withholding tax on dividend Adjustments for prior years Deferred tax In respect of the current year Income tax expense recognized in profit or loss	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 3,832,068 8,594 190,337 433,094 4,464,093 (57,950) $ 4,406,143	2020 $ 4,655,164 268,298 539,746 (17,583) 5,445,625 (75,549) $ 5,370,076

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A reconciliation of accounting profit and income tax expenses is as follows:

Profit before tax from continuing operations Income tax expense calculated at the statutory rate Nondeductible expenses in determining taxable income Tax-exempt income Unrecognized temporary differences Tax on changes in fair value of investment properties Unrecognized loss carryforwards Investment credits Effect of different tax rate of the Group operating in other jurisdictions Income tax on unappropriated earnings Additional income tax under the Alternative Minimum Tax Act Withholding tax on dividend Adjustments for prior years’ tax Tax credit - income from sources in Mainland China Income tax expense recognized in profit or loss	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 21,933,913 $ 4,386,783 353,017 (1,181,948) 236,945 49,060 (20,277) - 44,540 8,594 36,248 190,337 433,094 (130,250) $ 4,406,143	2020 $ 24,143,883 $ 4,828,777 241,219 (817,463) 100,545 19,150 21,834 (34,825) 335,165 268,298 3,075 539,746 (17,583) (117,862) $ 5,370,076

b. Income tax recognized in other comprehensive income

Deferred tax In respect of the current year Remeasurement on defined benefit plans	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 39,553	2020 $ (12,386)

c. Current tax assets and liabilities

Current tax assets Tax refund receivable Current tax liabilities Income tax payable		December 31	December 31
		2021 $ 73,780 $ 2,414,410	2020 $ 9,434 $ 2,954,930

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d. Deferred tax assets and liabilities

The movements of deferred tax assets and deferred tax liabilities were as follows:

For the year ended December 31, 2021

Deferred tax assets Temporary differences Allowance for impairment loss Defined benefit obligation Other financial assets and liabilities Investment properties Property, plant and equipment Intangible assets Others Tax losses Deferred tax liabilities Temporary differences Land value increment tax Investment properties Unappropriated earnings of subsidiaries and associates Finance leases Defined benefit obligation Associates Property, plant and equipment Provisions Allowance for impairment loss	Opening Balance Recognized in Profit or Loss Recognized in Other Comprehensive Income $ 367,620 $ (16,754) $ - 26,281 - (440) 86,311 (76,594) - 23,013 139 - 2,376 (1,094) - - 264,035 - 119,516 65,806 - 625,117 235,538 (440) 65,588 (29,691) - $ 690,705 $ 205,847 $ (440) $ 3,449,871 $ - $ - 3,123,463 49,199 - 2,357,237 172,563 - 570,347 (41,627) - 461,820 8,037 39,113 53,456 (3,053) - 46,268 12,630 - 51,780 (50,293) - 1,075 441 - $ 10,115,317 $ 147,897 $ 39,113	Exchange Differences Closing Balance $ (1,943) $ 348,923 - 25,841 - 9,717 (125) 23,027 152 1,434 (645) 263,390 (698) 184,624 (3,259) 856,956 (1,502) 34,395 $ (4,761) $ 891,351 $ - $ 3,449,871 - 3,172,662 (2,424) 2,527,376 - 528,720 - 508,970 (281) 50,122 (310) 58,588 (1,487) - - 1,516 $ (4,502) $ 10,297,825

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For the year ended December 31, 2020

Deferred tax assets Temporary differences Allowance for impairment loss Defined benefit obligation Other financial assets and liabilities Investment properties Property, plant and equipment Others Tax losses Deferred tax liabilities Temporary differences Land value increment tax Investment properties Unappropriated earnings of subsidiaries and associates Finance leases Defined benefit obligation Associates Property, plant and equipment Provisions Allowance for impairment loss	Opening Balance Recognized in Profit or Loss Recognized in Other Comprehensive Income $ 251,095 $ 110,778 $ - 25,516 - 765 12,747 73,564 - 5,464 17,180 - 4,205 (1,935) - 100,120 17,662 - 399,147 217,249 765 75,782 (9,193) - $ 474,929 $ 208,056 $ 765 $ 3,449,871 $ - $ - 3,087,133 36,330 - 2,294,123 61,024 - 599,026 (28,679) - 465,933 7,508 (11,621) 55,652 (3,012) - 39,684 6,584 - - 51,677 - - 1,075 - $ 9,991,422 $ 132,507 $ (11,621)	Exchange Differences Closing Balance $ 5,747 $ 367,620 - 26,281 - 86,311 369 23,013 106 2,376 1,734 119,516 7,956 625,117 (1,001) 65,588 $ 6,955 $ 690,705 $ - $ 3,449,871 - 3,123,463 2,090 2,357,237 - 570,347 - 461,820 816 53,456 - 46,268 103 51,780 - 1,075 $ 3,009 $ 10,115,317

e. Unused loss carryforwards for which no deferred tax assets have been recognized in the consolidated balance sheets

Loss carryforwards Expire in 2021 Expire in 2022 Expire in 2023 Expire in 2024 Expire in 2025 Expire in 2026 Expire in 2029 Expire in 2030 Expire in 2031 No expiration		December 31	December 31
		2021 $ - 111,081 82,057 75,241 319,093 18,448 13,189 53,020 5,692 69,456 $ 747,277	2020 $ 222,721 297,567 82,353 75,332 319,198 - 13,189 49,433 - 5,250 $ 1,065,043

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f. Information about unused loss carryforwards

Loss carryforwards as of December 31, 2021 comprised the following:

Unused Amount	Expiry Year
$ 111,081	2022
82,057	2023
75,241	2024
319,093	2025
18,448	2026
42,227	2029
53,020	2030
5,692	2031
237,620	No expiration
$ 944,479

g. The aggregate amount of temporary differences associated with investments for which deferred tax liabilities have not been recognized

As of December 31, 2021 and 2020, the taxable temporary differences associated with investments in subsidiaries and associates for which no deferred tax liabilities have been recognized were $9,522,027 thousand and $8,808,648 thousand, respectively.

h. The latest years of income tax returns which had been assessed and cleared by the tax authorities were as follows:

Company The Corporation DCI YTRMC YSRMC FMT AEE AIC FDT YLPPC FSMS NHC CHP YLSS YLT	Year
	2019 2019 2019 2019 2019 2019 2018 2019 2019 2019 2019 2019 2019 2019

31. EARNINGS PER SHARE

Unit: NT$ Per Share

Basic earnings per share Diluted earnings per share	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 4.70 $ 4.57	2020 $ 4.70 $ 4.41

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The earnings and weighted average number of ordinary shares outstanding used for the earnings per share computation were as follows:

Net Profit for the Year

Profit for the period attributable to owners of the Corporation Effect of potentially dilutive ordinary shares: Convertible bonds Earnings used in the computation of diluted earnings per share	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 15,068,221 93,952 $ 15,162,173	2020 $ 14,710,486 (88,804) $ 14,621,682

Weighted average number of ordinary shares outstanding (in thousand shares):

Weighted average number of ordinary shares in computation of basic earnings per share Effect of potentially dilutive ordinary shares: Employees’ compensation Convertible bonds Weighted average number of ordinary shares used in the computation of diluted earnings per share	For the Year Ended	For the Year Ended	December 31
		2021 3,203,972 5,119 106,012 3,315,103	2020 3,129,384 5,931 178,408 3,313,723

The weighted average number of ordinary shares used in the computation of basic earnings per share is the weighted average outstanding shares after subtracting the shares of the Corporation held by the associates treated as treasury shares.

When an entity pays employee compensation that may be settled in shares or cash at the entity’s option, the entity shall presume that the employee compensation will be settled in shares, and the resulting potential shares shall be included in diluted earnings per share if the effect is dilutive. The number of shares is estimated by dividing the entire amount of the compensation by the closing price of the shares at the balance sheet date. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

32. EQUITY TRANSACTIONS WITH NON-CONTROLLING INTERESTS

From March to December 2021 and from April to December 2020, the Group acquired additional non-controlling interests in subsidiaries, and increased its continuing interest in these subsidiaries; refer to Note 13.

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The above transactions were accounted for as equity transactions, since it did not have effect on the Group’s control over these subsidiaries.

				2021	2021
ACSPL CHP $ (1,320 ) $ (486 ) 1,462 1,009 $ 142 $ 523 $ 142 $ 523 - - $ 142 $ 523		YTRMC $ (1 ) - $ (1) $ - (1) $ (1)		YLPPC FMT $ (18 ) $ (3 ) 28 - $ 10 $ (3) $ 10 $ - - (3) $ 10 $ (3) 2020		AEE $ (10 ) - $ (10) $ - (10) $ (10)	Total $ (1,838 ) 2,499 $ 661 $ 675 (14) $ 661
		$
		$
		$

CHP $ (5,382,073 ) 3,957,254 $ (1,424,819) $ - (1,424,819) $ (1,424,819) NHC $ (113 ) 116 $ 3	YLT $ (2,902 ) 2,854 $ (48) $ - (48) $ (48) YTRMC $ (8 ) - $ (8)		AEE $ (2,759 ) 2,714 $ (45) $ - (45) $ (45) YSRMC $ (26 ) 31 $ 5		DCI FMT YLPPC $ (777 ) $ (1,757 ) $ (101 ) 1,141 1,762 107 $ 364 $ 5 $ 6 $ 364 $ 5 $ 6 - - - $ 364 $ 5 $ 6 FDT JYLTC Total $ (521 ) $ (17 ) $ (5,391,054 ) 556 17 3,966,552 $ 35 $ - $ (1,424,502) (Continued)

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Line items adjusted for equity transactions Capital surplus - difference between consideration paid and the carrying amount of the subsidiaries’ net assets during actual acquisition Retained earnings	NHC $ 3 - $ 3	YTRMC $ - (8) $ (8)	YSRMC $ 5 - $ 5	FDT $ 35 - $ 35	JYLTC Total $ - $ 418 - (1,424,920) $ - $ (1,424,502) (Concluded)

33. CAPITAL MANAGEMENT

The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance.

The capital structure of the Group consists of net debt (borrowings offset by cash and cash equivalents) and equity of the Group (comprising issued capital, reserves, retained earnings and other equity).

The Group is not subject to any externally imposed capital requirements.

Key management personnel of the Group review the capital structure on an annual basis. As part of this review, the key management personnel consider the cost of capital and the risks associated with each class of capital. Based on recommendations of the key management personnel, in order to balance the overall capital structure, the Group may adjust the amount of dividends paid to shareholders and the amount of new debt issued or existing debt redeemed.

34. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments not measured at fair value

December 31, 2021

Carrying Amount Financial liabilities Financial liabilities measured at amortized cost Bonds payable (included current portion) $ 45,131,854 December 31, 2020 Carrying Amount Financial liabilities Financial liabilities measured at amortized cost Bonds payable (included current portion) $ 48,170,305	FairValue
	Level 1 Level 2 Level 3 Total $ 45,301,069 $ - $ - $ 45,301,069 Fair Value
	Level 1 Level 2 Level 3 Total $ 49,777,749 $ - $ - $ 49,777,749

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b. Fair values of financial instruments measured at fair value on a recurring basis
1) Fair value hierarchy

December 31, 2021

Financial assets at FVTPL Listed shares Beneficiary certificates Convertible options Financial assets at FVTOCI Domestic listed shares Domestic unlisted shares Overseas listed shares Overseas unlisted shares December 31, 2020 Financial assets at FVTPL Listed shares Beneficiary certificates Convertible options Financial assets at FVTOCI Domestic listed shares Domestic unlisted shares Overseas listed shares Overseas unlisted shares Financial liabilities at FVTPL Cross-currency swap contracts	Level 1 $ 5,322,242 1,887,397 - $ 7,209,639 $ 12,793,243 - 27,279 - $ 12,820,522 Level 1 $ 5,458,496 1,088,908 - $ 6,547,404 $ 13,146,399 - 150,110 - $ 13,296,509 $ -	Level 2 $ - 645,682 - $ 645,682 $ - - - - $ - Level 2 $ - 623,785 - $ 623,785 $ - - - - $ - $ -	Level 3 $ - 16,373,974 466 $ 16,374,440 $ - 1,815,326 - 399,747 $ 2,215,073 Level 3 $ - 7,598,877 94,743 $ 7,693,620 $ - 1,691,106 - 393,107 $ 2,084,213 $ 425,693	Total $ 5,322,242 18,907,053 466 $ 24,229,761 $ 12,793,243 1,815,326 27,279 399,747 $ 15,035,595 Total $ 5,458,496 9,311,570 94,743 $ 14,864,809 $ 13,146,399 1,691,106 150,110 393,107 $ 15,380,722 $ 425,693

There were no transfers between Levels 1 and 2 for the years ended December 31, 2021 and 2020.

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2) Reconciliation of Level 3 fair value measurements of financial instruments

Balance at January 1, 2021 Recognized in profit or loss Net loss on financial instruments at FVTPL Recognized in other comprehensive income Unrealized gain on financial instruments at FVTOCI Purchase Convertible bonds converted to ordinary shares Settlement Balance at December 31, 2021 Balance at January 1, 2020 Recognized in profit or loss Net gain (loss) on financial instruments at FVTPL Recognized in other comprehensive income Unrealized loss on financial assets at FVTOCI Purchase Balance at December 31, 2020		Financial Assets at FVTPL Non- Derivatives Derivatives Financial Assets Financial Liabilities Instruments $ 94,743 $ (425,693) $ 7,598,877 (39,968) (253,257) (270,903) - - - - - 9,046,000 (54,309) - - - 678,950 - $ 466 $ - $ 16,373,974 Financial Assets at FVTPL Non- Derivatives Derivatives Financial Assets Financial Liabilities Instruments $ - $ (112,070) $ - 94,743 (313,623) (214,023) - - - - - 7,812,900 $ 94,743 $ (425,693) $ 7,598,877	Financial Assets at FVTPL Non- Derivatives Derivatives Financial Assets Financial Liabilities Instruments $ 94,743 $ (425,693) $ 7,598,877 (39,968) (253,257) (270,903) - - - - - 9,046,000 (54,309) - - - 678,950 - $ 466 $ - $ 16,373,974 Financial Assets at FVTPL Non- Derivatives Derivatives Financial Assets Financial Liabilities Instruments $ - $ (112,070) $ - 94,743 (313,623) (214,023) - - - - - 7,812,900 $ 94,743 $ (425,693) $ 7,598,877		Financial Assets at FVTOCI Equity Instruments $ 2,084,213 - 123,468 7,392 - - $ 2,215,073 Financial Assets at FVTOCI Equity Instruments $ 2,219,586 - (135,373) - $ 2,084,213	Total $ 9,352,140 (564,128) 123,468 9,053,392 (54,309) 678,950 $ 18,589,513 Total $ 2,107,516 (432,903) (135,373) 7,812,900 $ 9,352,140


		Derivatives Financial Assets Financial Liabilities $ - $ (112,070) 94,743 (313,623) - - - - $ 94,743 $ (425,693)
		Financial Assets $ - 94,743 - - $ 94,743

3) Valuation techniques and inputs applied for Level 2 fair value measurement

Financial Instruments Valuation Techniques and Inputs

Mutual funds The Group uses net asset value as the basis to determine the fair value as the Group has determined that the net asset value of the mutual fund represents fair value at the end of the reporting period.

4) Valuation techniques and inputs applied for Level 3 fair value measurement
a) The fair values of convertible bond options are determined using the information available from the counterparty for valuation based on the option pricing model. The option pricing model incorporates the present value techniques and reflects both the time value and the intrinsic value of options.
b) The fair value of cross currency swap contracts is determined using the information available from the counterparty for valuation. The counterparty measures the fair value of a cross currency swap contracts using the discounted cash flows model. Future cash flows are estimated based on observable forward exchange rates at balance sheet dates and contract forward rates and discounted at rates that reflect the credit risk of various counterparties.
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c) The fair values of unlisted shares are determined by using the asset approach or the market approach. In the asset approach, the fair values are estimated by using the net asset value measured at fair value based on the unlisted investees’ latest financial statements, while taking into account the liquidity discount and non-controlling interest discount. In the market approach, the fair values are estimated based on the market transaction prices of comparable companies with similar industrial and business characteristics and liquidity discount are considered.
d) The fair values of beneficiary certificates are determined by using the asset approach. In the asset approach, the fair values are estimated by using the net asset values measured at fair value based on the funds’ latest financial statements.
c. Categories of financial instruments

Financial assets Financial assets at FVTPL Financial assets at amortized cost (1) Financial assets at FVTOCI Financial liabilities Financial liabilities at FVTPL Financial liabilities at amortized cost (2)	December 31
	2021 2020 $ 24,229,761 $ 14,864,809 82,864,775 67,061,789 15,035,595 15,380,722 - 425,693 119,214,129 108,685,604

1) The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, debt investments, notes receivable, trade receivables, other receivables and finance lease receivables.
2) The balances include financial liabilities measured at amortized cost, which comprise short-term and long-term borrowings, short-term bills payable, trade payables and accrued expenses, and bonds payable.
d. Financial risk management objectives and policies

The Group’s major financial instruments include equity and debt investments, trade receivables, trade payables, bonds payable, borrowings and lease liabilities. The Group’s corporate treasury function provides services to the business, coordinates access to domestic and international financial markets, monitors and manages the financial risks relating to the operations of the Group through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including foreign currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Group mitigates the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Group’s policies approved by the Corporation’s board of directors, which provides written principles on foreign currency risk, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments, and the investment of excess liquidity. Compliance with policies and exposure limits is reviewed by the internal auditors on a continuous basis.

1) Market risk

The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Group enters into cross-currency swap contracts to mitigate its exposure to foreign currency risk and interest risk.

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a) Foreign currency risk

Several subsidiaries of the Corporation have foreign currency sales and purchases and foreign currency financing activities, which expose the Group to foreign currency risk.

The carrying amounts of the Group’s foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) and derivatives exposed to foreign currency risk at the end of the reporting period are set out in Note 39.

Sensitivity analysis

The Group was mainly exposed to the RMB and USD.

The following table details the Group’s sensitivity to a 5% increase and decrease in the functional currency against the relevant foreign currencies. The sensitivity rate of 5% is used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis included only outstanding foreign currency denominated monetary items less notional amounts of cross-currency swap. The analysis assumed a 5% change in foreign currency rates at the end of the reporting period. A positive number below indicates an increase in pre-tax profit assuming the New Taiwan dollars weakened by 5% against the relevant currency. For a 5% strengthening of New Taiwan dollars against the relevant currency, there would be an equal and opposite impact on pre-tax profit and the balances shown below would be negative.

Increase (decrease) in pre-tax profit	RMB Impact For the Year Ended December 31 2021 2020 $ 91,507 $ 87,704	USD Impact
		For the Year Ended December 31
		2021 2020 $ 303,652 $ 518,878

b) Interest rate risk

The Group is exposed to interest rate risk because entities in the Group borrows funds at both fixed and floating interest rates. The risk is managed by the Group by maintaining an appropriate mix of fixed and floating rate borrowings and using cross currency swap contracts.

The carrying amounts of the Group’s financial assets and financial liabilities with exposure to changes in interest rates at the end of the reporting period were as follows:

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities	December 31
	2021 2020 $ 18,158,942 $ 18,929,599 94,686,365 78,458,021 29,591,561 23,251,722 13,256,840 21,905,450

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Sensitivity analysis

The sensitivity analysis below is based on the Group’s exposure to changes in interest rates of non-derivative instruments at the end of the reporting period.

If interest rates had been 0.01% higher/lower and all other variables were held constant, the Group’s pre-tax profit for the years ended December 31, 2021 and 2020 would have increased/decreased by $884 thousand and $(247) thousand, respectively, mainly due to the Group’s exposure to changes in interest rates of its variable-rate bank borrowings and bank deposits.

c) Other price risk

The Group is exposed to price risk through its investments in listed equity securities and beneficiary certificates of funds.

Sensitivity analysis

The sensitivity analysis below is based on the exposure to investment position price risks at the end of the reporting period.

If investment position prices had been 1% higher/lower, pre-tax profit for the years ended December 31, 2021 and 2020 would have increased/decreased by $242,293 thousand and $147,701 thousand, respectively, as a result of the changes in fair value of financial assets at fair value through profit or loss, and the pre-tax other comprehensive income for the years ended December 31, 2021 and 2020 would have increased/decreased by $128,205 thousand and $132,965 thousand, respectively, as a result of the changes in fair value of financial assets at fair value through other comprehensive income.

2) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Group. As at the end of the reporting period, the Group’s maximum exposure to credit risk which would cause a financial loss to the Group due to the failure of counterparties to discharge an obligation and financial guarantees provided by the Group is equal to the carrying amount of the financial assets as stated in the balance sheets. The Group adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group only transacts with entities that are rated the equivalent of investment grade and above. The Group uses publicly available financial information and its own trading records to rate its major customers. The Group’s exposure and the credit ratings of its counterparties are continuously monitored.

The counterparties in trade receivables consist of a large number of clients in different industries and regions. The Group evaluates clients’ financial condition continuously.

Credit risk represents the potential negative impact on the financial assets of the Group if counterparties or third parties breach the contracts. The Group evaluates credit risk exposure on contracts with positive carrying amounts. The Group evaluated the credit risk exposure as immaterial because all counterparties are reputable financial institutions and companies with good credit ratings.

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3) Liquidity risk

The Group manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Group’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

a) Liquidity and interest rate tables for non-derivative financial liabilities

The following tables detail the Group’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables had been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The tables included both interest and principal cash flows.

December 31, 2021

On Demand or Less than 1 Month Non-derivative financial liabilities Non-interest bearing $ 5,766,048 Lease liabilities 18,062 Variable interest rate liabilities - Fixed interest rate liabilities 29,509,578 $ 35,293,688 Additional information about the maturity Less than 1 Year 1-5 Years Lease liabilities $ 216,743 $ 564,977 December 31, 2020 On Demand or Less than 1 Month Non-derivative financial liabilities Non-interest bearing $ 3,808,419 Lease liabilities 21,282 Variable interest rate liabilities 6,110,000 Fixed interest rate liabilities 11,347,931 $ 21,287,632	1-3 Months 3 Months to 1 Year $ 3,779,222 $ 1,406,360 36,123 162,558 3,390,000 5,286,160 12,260,663 4,042,895 $ 19,466,008 $ 10,897,973 analysis for lease liabilities: 5-10 Years 10-15 Years $ 255,169 $ 188,549 1-3 Months 3 Months to 1 Year $ 3,176,763 $ 2,313,266 42,564 191,540 4,400,000 2,582,865 11,787,808 13,009,109 $ 19,407,135 $ 18,096,780	1-5 Years $ 1,518,335 564,977 796,640 37,401,503 $ 40,281,455 15-20 Years $ 145,858 1-5 Years $ 319,796 601,765 5,147,909 30,732,248 $ 36,801,718	$	5+ Years 72,685 890,218 3,784,040 10,200,000
			$	14,946,943
			$	20+ Years $ 300,642 5+ Years 84,814 960,792 3,664,676 10,200,000
			$	14,910,282

Additional information about the maturity analysis for lease liabilities:

Less than 1 Year Lease liabilities $ 255,386	1-5 Years $ 601,765	5-10 Years 10-15 Years 15-20 Years $ 284,211 $ 199,642 $ 153,264	20+ Years $ 323,675

The amounts above of variable interest rate non-derivative financial assets and liabilities are subject to change if actual variable interest rates differ from those estimates of interest rates at the end of the reporting period.

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b) Liquidity and interest rate tables for derivative financial liabilities

The following table details the Group’s liquidity analysis of its derivative financial instruments. The table is based on the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on a net basis. When the amount payable or receivable is not fixed, the amount disclosed is determined by reference to the projected interest rates as illustrated by the yield curves at the end of the reporting period.

December 31, 2020

On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year Net settled Cross-currency swap contracts $ - $ (42,155) $ (86,183)	1-5 Years $ -	5+ Years $ -

e. Transfers of financial assets. None.
f. Offsetting financial assets and financial liabilities. None.
g. Reclassifications. None.

35. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Corporation and its subsidiaries, which are related parties of the Corporation, have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in the other notes, details of transactions between the Group and other related parties are disclosed below.

Transactions with related parties are conducted under normal terms.

Balances and transactions between the Group and single related party are disclosed separately except when the amount is less than 10% of the total balances or transactions; otherwise, the amounts are lumped together as others.

a. Related party name and category

Related Party Name FENC U-Ming SHSTC EISF YDC OSC HZYCCL FEDSDL Opas Fund Segregated Portfolio Company Drive Catalyst SPC	Related Party Category
	Associate Associate Associate Associate Associate Associate Associate Associate Associate Associate (Continued)

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Related Party Name Related Party Category

Alliance Concrete Singapore Pte. Ltd.	Joint venture
HXMC	Joint venture
WAMTC	Joint venture
U-Ming Transport (Singapore) Private Limited	Other
CHC Resources Corporation	Other
Far Eastern Department Store Ltd.	Other
Chu Chiang Enterprise Corp. Ltd.	Other
Chu Feng	Other
Air Liquide Far Eastern Co.	Other
Oriental Petrochemical (Taiwan) Corporation	Other
Far Eastern Memorial Hospital	Other
Ya Tung Department Store Ltd.	Other
Yuan Ze University	Other
Far Eastern Leasing Corporation	Other
Ho Hwei Enterprise Corp. Ltd.	Other
Far Eastern Apparel Co., Ltd.	Other
Oriental Union Chemical Corp.	Other
NanKung Enterprise Ltd.	Other
New Century InfoComm Tech Co., Ltd.	Other
Ding & Ding Management Consultants Co., Ltd.	Other
Far Eastern Fibertech Co., Ltd.	Other
Far Eastern International Bank (FEIB)	Other
Far Eastern Polytex (Vietnam) Ltd.	Other
FERD	Other
Far Eastern General Construction Inc.	Other
Far EasTone Telecommunications Co., Ltd.	Other
Far Eastern Property Insurance Agency Co., Ltd.	Other
Far Eastern International Leasing Corporation	Other
Lien Fang Enterprise Corp. Ltd.	Other
Chubei New Century Shopping Mall Co., Ltd.	Other
YDT Technology International Corporation	Other
Oriental Institute of Technology	Other
Oriental Green Materials Limited	Other
Far Eastern Ai Mai Co., Ltd.	Other
Ding Ding Hotel Co., Ltd.	Other
Malaysia Garment Manufacturers Pte. Ltd.	Other
Everest Textile Co., Ltd.	Other
Far Eastern Electronic Toll Collection Co., Ltd.	Other
Yuan Cheng Human Resources Consultant Corporation	Other
U-Ming Marine Transport (Hong Kong) Ltd.	Other
Ding & Ding Management Consultants Co., Ltd.	Other
Far Eastern Memorial Foundation	Other
Fang Lu Hsing	Related party in substance
Kun Yen Lee	Related party in substance
Lin Seng Chang	Related party in substance
Peter Hsu	Related party in substance
Raymond Hsu	Related party in substance
Douglas Tong Hsu	Related party in substance
Hsu Shih, Hsu	Related party in substance
Alice Hsu	Related party in substance
	(Continued)

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Related Party Name Nancy Hsu Tsai Hsiung Chang Z.P. Chang Y.F. Chang Chen Kun Chang Cheng Chen Fong Richard Yang Frederica Yang Johnny Shih	Related Party Category
	Related party in substance Related party in substance Related party in substance Related party in substance Related party in substance Related party in substance Related party in substance Related party in substance Related party in substance (Concluded)

Note: Other related party relationships mainly include associates’ subsidiaries, legal person in which the chairman is the same as the Corporation’s chairman and the director is also the Corporation’s chairman.

b. Operating Transactions

Operating revenue Associates Others Joint ventures Operating cost Associates Others Joint ventures	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 722,116 1,744,069 828,887 $ 3,295,072 $ 582,736 967,119 540,915 $ 2,090,770	2020 $ 660,959 1,777,182 444,836 $ 2,882,977 $ 606,513 856,620 562,226 $ 2,025,359

Receivables from related parties (including notes receivable, trade receivables, other receivables and contract assets):

Associates Others Joint ventures		December 31	December 31
		2021 $ 124,588 501,386 193,702 $ 819,676	2020 $ 87,954 484,322 144,687 $ 716,963

The outstanding trade receivables from related parties are unsecured. For the years ended December 31, 2021 and 2020, no impairment losses were recognized for trade receivables from related parties.

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Accounts payable and accrued expenses to related parties:

Associates Others Joint ventures The outstanding trade payables to related parties are unsecured. Prepayments to related parties: Associates Others Transactions with FEIB Bank deposits (Note) Bank loans Cross-currency swap contracts		December 31	December 31
		2021 2020 $ 111,082 $ 98,416 92,515 89,977 61,652 58,778 $ 265,249 $ 247,171 December 31
		2021 2020 $ 15,000 $ 15,000 790 1,854 $ 15,790 $ 16,854 December 31
		2021 $ 5,118,185 $ 1,480,000 $ -	2020 $ 3,622,676 $ 830,000 $ (26,854)

c. Transactions with FEIB

As of December 31, 2020, the notional principal of the above outstanding cross-currency swap contracts was US$15,000 thousand.

Note: The balances included amounts recognized as financial assets measured at amortized cost, and other non-current assets (refundable deposits).

d. Remuneration of key management personnel

The amounts of the compensation of directors and other key management personnel were as follows:

Short-term employee benefits Post-employment benefits	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 229,154 864 $ 230,018	2020 $ 246,593 864 $ 247,457

The remuneration of directors and key executives is determined by the remuneration committee based on the performance of individuals and market trends.

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e. Other transactions with related parties
1) Operating expense - rental

Associates Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2021 $ 50,815 9,604 $ 60,419	2020 $ 48,547 9,068 $ 57,615

2) Acquisitions of property, plant, and equipment

Others

For the Year Ended December 31 2021 2020 $ 2,317 $ 887

3) Lease agreement

Acquisitions of right-of-use assets

For	the Year Ended December 31	the Year Ended December 31	the Year Ended December 31
	2021		2020
$	31,501	$	58,115

	For the Year Ended December 31	For the Year Ended December 31
	2021	2020
Others Lease liabilities Others	$ 31,501	$ 58,115
	December 31
	2021 $ 183,583	2020 $ 205,261

4) Due to changes in circumstances, the Group’s donations to Yuan Ze University in 2010 and 2013 were not able to be proceeded and, thus, were returned and recognized in other income of $61,304 thousand and interest income of $3,248 thousand, respectively. In December 2020, the Group proposed to transfer donation amounting to $64,552 thousand to Far Eastern Memorial Foundation to support its ”International Conference Center Project” and recognized the donation in miscellaneous expenses.
5) The nature of the Group’s transaction with OFSPC is acquisition or disposal of OPAS Fund Segregated Portfolio’s overseas fund through OFSPC’s platform. The portfolio’s decision is made and managed by the investment committee which is composed of the Group and other investors. The Group’s investment activities through OFSPC’s platform for the years ended December 31, 2021 and 2020 included acquisition of $282,300 thousand and $470,935 thousand, and disposal of $282,133 thousand and $427,912 thousand as well as gain on disposal of $41,013 thousand and $33,502 thousand, respectively.
6) From March to December 2021, the Group acquired additional non-controlling interests in subsidiaries including ACSPL, CHP, YTRMC, YLPPC, FMT and AEE from a related party in substance with a total amount of $1,682 thousand; refer to Note 32 for the details.
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7) From April to December 2020, the Group acquired further interests in associate YYI and YDC, as well as non-controlling interests in subsidiaries, including CHP, YTRMC, DCI, FMT, NHC, AEE, YLT, YLPPC and YSRMC and FDT, from related party in substance with a total amount of $21,967 thousand; refer to Note 32.
8) From April to August 2021, the Group subscribed for new shares of Ding Ding Hotel Co., Ltd., Drive Catalyst SPC-SP Tranche Two, Drive Catalyst SPC-SP Tranche Three and cash capital increase of Everest Textile Co., Ltd. with a total amount of $295,743 thousand.

36. ASSETS PLEDGED AS COLLATERAL

The following assets are provided as collaterals for short-term and long-term bank borrowings or for purchases from suppliers:

Investment properties Investments accounted for using the equity method Property, plant and equipment Financial assets at fair value through other comprehensive income Financial assets at amortized cost		December 31	December 31
		2021 $ 13,948,483 8,976,968 2,386,293 107,250 1,052,588 $ 26,471,582	2020 $ 13,857,983 8,919,905 2,530,035 204,000 314,343 $ 25,826,266

37. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

As of December 31, 2021, the Corporation and its subsidiaries had the following significant commitments and contingencies:

a. Unused letters of credit of NT$29,232 thousand, US$21,724 thousand, RMB1,186 thousand, and EUR469 thousand.
b. Guarantee notes issued for related parties: refer to Table 2.
c. CHP entered into agreements on the following transactions:
1) Purchase of natural gas from Chinese Petroleum Corporation.
2) Power Plant (base load unit) Purchase and Sale Contract, Power Plant (medium-load unit) Purchase and Sale Contract and Electricity Purchase and Sale Contract for Gas Recirculation with Taiwan Power Company.
3) Contractual Service Agreement with General Electric Global Services GmbH.
4) Contract of Engineering, Procurement and Construction with General Electric Global Services GmbH. and GE Global Parts & Products, GmbH.
d. The estimated payments for construction of plants and acquisition of land use rights and equipment of JYDC, HYDCCL, SIYDCCL, HGYDC and SLCL in the future amount to RMB44,623 thousand.
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e. YSRMC supplied ready-mixed concrete to Da Cin Construction Co., Ltd. (“Da Cin”) during 2003. The owner of the project under construction demanded Da Cin to take responsibility for repairing the construction flaws. Da Cin requested YSRMC to compensate the loss and damage on the construction. However, both parties did not reach an agreement from 2006 to 2009. Da Cin filed an appeal and requested YSRMC to indemnify $22,881 thousand in April 2010. In July 2014, the local court concluded that YSRMC has to pay indemnity in the amount of $17,642 thousand. In 2010, 2014, and 2020, YSRMC estimated the related compensation loss, which was accounted for as provisions, of $13,800 thousand, $3,840 thousand and $27,600 thousand, respectively, with a total of $45,240 thousand. YSRMC also filed an appeal against the court’s decision in October 2014. Da Cin requested additional compensation of $137,544 thousand in the second instance, and the total damage compensation claimed was $160,425 thousand together with the amount in the first instance. However, Dan Cin’s appeal was dismissed in the second instance; thus YSRMC did not have to bear any expenses. Da Cin further filed an appeal to the Supreme Court, and the case remained to be rejected by the High Court. Later, Da Cin filed an appeal to the Supreme Court for the second time and the appeal was still dismissed by the Supreme Court on September 30, 2020.
f. On March 13, 2013, the No. 1114 Commissioners’ Meeting of Fair Trade Commission resolved that independent power producers violated Article 14, Paragraph 1 of Fair Trade Act due to the rejection of power purchase rate adjustment with TPC and fined CHP $400,000 thousand. Accordingly, CHP recognized penalty expenses, which is included in other losses in the consolidated financial statements for the year ended December 31, 2013. The penalty is payable in 60 monthly installments and covered by a long-term note payable. CHP had filed an appeal on April 17, 2013. On September 12, 2013, the Petitions and Appeals Committee of the Executive Yuan rescinded the imposition of penalty (the “Penalty Disposition”) and advised the Fair Trade Commission to impose more appropriate disposition with refund of penalty paid by CHP. However, CHP’s appeal against the imposition of illegal concerted action among independent power producers (the “Act Disposition”) was dismissed.

Regarding the Penalty Disposition, the Fair Trade Commission resolved a penalty of $370,000 thousand on November 13, 2013. CHP thus adjusted the penalty expenses in other gains and losses for the year ended December 31, 2013. The disposition was revoked again by the Petitions and Appeals Committee on May 9, 2014. Then the Fair Trade Commission imposed a penalty of $364,000 thousand on July 9, 2014. CHP recognized a reversal gain of $6,000 thousand in other income for the year ended December 31, 2014 and issued a long-term note payable in 60 installments for the penalty in accordance with the disposition. In addition, CHP also filed an appeal to defend its interest on August 11, 2014.

On December 11, 2014, Letter from the Petitions and Appeals Committee indicates that the filing of appeal against the Penalty Disposition is suspended until the administrative court makes the final judgment on the Act Disposition.

Regarding the Act Disposition, on November 7, 2013, CHP filed an administrative litigation at the Taipei High Administrative Court against the dispositions of the Fair Trade Commission. The Taipei High Administrative Court ruled in favor of CHP on October 29, 2014. Nevertheless, the Fair Trade Commission filed an appeal with the Supreme Administrative Court. The Supreme Administrative Court dismissed the judgment made by the Taipei High Administrative Court on July 2, 2015. The case was remanded to the Taipei High Administrative Court on May 25, 2017, and the Taipei High Administrative Court still revoked the administrative disciplinary action and the judgement of the appeal. The Fair Trade Commission filed an appeal with the Supreme Administrative Court and the case was remanded to the Taipei High Administrative Court on September 27, 2018. On May 16, 2020, the Taipei High Administrative Court revoked the administrative disciplinary action and the judgement of the appeal once again. On July 9, 2020, the Fair Trade Commission served a statement of appeal upon CHP, and the Taipei High Administrative Court has transferred the case to the Supreme Administrative Court on August 18, 2020.

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g. On March 15, 2013, Letter No. 102035 from the Fair Trade Commission indicated concerted action among CHP and other independent power producers due to the rejection of power purchase rate adjustment with TPC. Accordingly, in August 2015, TPC filed at the Taipei District Court a civil mediation which requests CHP to compensate $2.35 billion plus interest from November 1, 2007 to the settlement date for the damage caused. Later, in September 2015, TPC filed at the Taipei District Court a civil litigation appeal which requests CHP to compensate $2.349 billion plus interest from November 1, 2007 to the settlement date as well as an apology published in major newspapers. TPC also filed at the Taipei High Administrative Court an administrative litigation which requests CHP to compensate the damage caused which amounted to $1.4 billion plus interest from November 1, 2007 to the settlement date with a 5% annual interest rate.

CHP and TPC did not reach an agreement in the civil mediation council meeting held on October 7, 2015. Later, TPC included the damage compensation claimed in the civil mediation in the administrative litigation appeal and the total compensation claimed in the statement of the administrative litigation amounted to $3.75 billion plus interest from November 1, 2007 to the settlement date with a 5% annual interest rate. On November 27, 2015, the administrative court ruled that the litigation proceedings are suspended until the administrative court makes the final judgment on the Act Disposition. However, on July 12, 2016, Taipei High Administrative Court notified that the power purchase and sales contracts between independent power producers and TPC are subject to the performance of obligation under the Civil Code. Therefore, the abovementioned ruling for suspension was revoked and the administrative litigation for compensation would be transferred to the Taipei District Court. TPC filed counter appeal against the ruling; however, the appeal was dismissed by the Supreme Administrative Court on December 30, 2016. This case has been transferred to the Taipei District Court on January 25, 2017. On April 12, 2019, the appeal was dismissed by the Taipei District Court, and TPC filed an appeal to the Taiwan High Court on May 17, 2019. On April 13, 2021, CHP has been notified that TPC has revoked its appeal. Later, CHP responded to the Taiwan High Court and agreed with the withdrawal on April 20, 2021.

In light of the civil proceedings, on March 1, 2016, TPC added posterior statement which requests the capital expenditure it paid to CHP from October 9, 2007 to November 30, 2012 according to the power purchase and sales contracts to be recalculated relying on CHP’s capital ratio. Accordingly, CHP would compensate at least $2.349 billion to TPC. The Taipei District Court dismissed the appeal on November 1, 2018, and TPC filed an appeal subsequently. This case is currently heard by the Taiwan High Court.

CHP considered the payment of the indemnity is not possible unless TPC can provide proof that the damage was caused by CHP and their appeal is filed within the statute of limitation. As of the date the consolidated financial statements were authorized for issue, the amount of the compensation cannot be reasonably estimated. Therefore, CHP could not assess the possible impact on its financial position and did not recognize any contingent liabilities.

h. On December 4, 2015 and December 17, 2015, CSCGL, China Shanshui Cement Group (Hong Kong) Company Limited and China Pioneer Cement (Hong Kong) Company Limited (collectively referred as “Shanshui Cement Group”) commenced legal proceedings against the former directors of CSCGL in respect of the alleged dishonest breaches of fiduciary duty or alleged conspiracy to cause damages to CSCGL during their tenures. The proceedings arose from disputes between CSCGL’s present and former board of directors over the changes in management and the takeover of the headquarters of CSCGL. On April 7, 2016, the Corporation was added as the 10th defendant. The Corporation engaged lawyers to take legal actions in connection with the unqualified claim to defend its reputation and interests. The case was tried by the High Court of Hong Kong from April 19 to June 17, 2021, and the case is currently waiting for a judgment from the High Court of Hong Kong. As of the auditors’ audit report date, the Corporation considered that it is premature to evaluate at this stage the possible outcome of the proceedings given that no judgement has been handed down by the court and, therefore, did not recognize any contingent liabilities.
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i. Tianrui Group Company Limited and Tianrui (International) Holding Company Limited (collectively referred as “Tianrui Group”), CSI and former directors of CSCGL, in breach of the Rules Governing the Listing of Securities on The Stock Exchange of Hong Kong Limited, the Codes on Takeovers and Mergers and share Buy-backs issued by the Hong Kong Securities and Futures Commission and the fiduciary duties, have engaged in unfair prejudicial conducts in favor of Tianrui directly and indirectly through CSCGL which are detrimental to the interests of the shareholders including the Corporation. The Corporation filed a writ of summons to the High Court of Hong Kong in June 2017 and has been seeking legal advice in relation to the legal proceedings. As the respondents’ applications to strike out the petition for technical reasons, the Corporation amended the applications accordingly. As of the auditors’ audit report date, no further decision has been rendered yet.
j. On August 30, 2018, Tianrui (International) Holding Company Limited (“Tianrui”) presented a petition to the Grand Court of the Cayman Islands (the “Grand Court”) seeking to wind up CSCGL, and Tianrui further filed an application for the appointment of joint provisional liquidators (“JPLs”) over CSCGL, which was accepted by the Grand Court on September 4, 2018. On August 12, 2019, CSCGL had made applications to the Grand Court for the above-mentioned winding-up petition to be struck out and/or stayed. However, the Grand Court dismissed CSCGL’s applications according to the announcement dated April 7, 2020 at the news website of the Hong Kong Exchanges and Clearing Limited. Pursuant to the Grand Court’s decision, the winding up petition filed by Tianrui is considered a dispute between CSCGL’s shareholders and thus needs to be amended. The amendments shall include but are not limited to adding the Corporation as a defendant. Later, Tianrui filed an application with the Grand Court to amend its winding-up petition, and the Corporation was added as a defendant in the petition. By an order of the Grand Court announced on January 27, 2021, the Grand Court granted Tianrui’s amendments to the winding-up petition against CSCGL and added the Corporation as a defendant. On March 19, 2021, the Corporation received the legal documents from Tianrui and has appointed legal counsel in relation to the false accusation in order to preserve the Corporation’s reputation and interests. Since no further verdict has been rendered yet, the Corporation considered that it is premature to evaluate at this stage the possible outcome of the proceedings. Therefore, the Corporation assessed that the winding-up petition did not have any material impact on its investments in CSCGL.

38. OTHER ITEMS

a. Due to the impact of the COVID-19 pandemic, the Group considered the economic implications of the epidemic when making its critical accounting estimates based on the information available as of the balance sheet date; refer to Note 5. With this, the Group assessed that there are no doubts in the aspects of the Group’s ability to continue as a going concern, risk of asset impairment and financing activities as of the date the consolidated financial statements were authorized for issue. The Group will stay alert to the development and situation of the COVID-19 and will take necessary action to mitigate the business risk.
b. During the year ended December 31, 2021, various local PRC government competent authorities have conducted various independent investigations in relation to environmental protection, production process and labour safety in various subsidiaries of the Group in mainland China. Refer to Note 29 for the penalties for regulation violation and related surcharges. After seeking legal advice, the Group considered that all investigations were completed and no investigation was yet to be finalised up to the date of the audit report.
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39. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Group’s significant financial assets and liabilities denominated in foreign currencies were as follows:

December 31, 2021

		Foreign		New Taiwan
		Currency	Exchange Rate	Dollars
Financial assets
Monetary items
USD	$	582,533	27.630	$ 16,095,387
RMB		422,277	4.334	1,830,149
EUR		3,008	31.116	93,609
Non-monetary item
HKD		659,278	3.519	2,319,999
USD		620,542	27.630	17,145,575
RMB		23,910	4.334	103,626
Financial liabilities
Monetary items
USD		362,734	27.630	10,022,340
December 31, 2020
		Foreign		New Taiwan
		Currency	Exchange Rate	Dollars
Financial assets
Monetary items
USD	$	578,136	28.430	$ 16,436,405
RMB		402,575	4.357	1,754,078
EUR		27,487	34.820	957,098
Non-monetary item
HKD		632,081	3.643	2,302,672
USD		297,146	28.430	8,447,863
RMB		39,500	4.357	172,102
Financial liabilities
Monetary items
USD		428,114	28.430	12,171,293
Non-monetary item
USD		14,973	28.430	425,693

For the years ended December 31, 2021 and 2020, the total amounts of realized and unrealized net foreign exchange losses were $161,955 thousand and $162,371 thousand, respectively. It is impractical to disclose net foreign exchange losses by each significant foreign currency because of the variety of the foreign currency transactions and functional currencies of the Group.

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40. SEPARATELY DISCLOSED ITEMS

a. Information about significant transactions and investees:
1) Financing provided to others (Table 1)
2) Endorsements/guarantees provided (Table 2)
3) Marketable securities held (excluding investments in subsidiaries, associates and joint ventures) (Table 3)
4) Marketable securities acquired or disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital (Table 4)
5)Acquisition of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital: None.
6) Disposal of individual real estate at prices of at least NT$300 million or 20% of the paid-in capital: None.
7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 5)
8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital (Table 6)
9) Information on investees (Table 7)
10) Trading in derivative instruments (Note 7)
b. Information on investments in mainland China
1) Information on any investee company in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, net income of investees, investment income or loss, carrying amount of the investment at the end of the year, repatriations of investment income, and limit on the amount of investment in the mainland China area (Table 8)
2) Any of the following significant transactions with investee companies in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses (Table 9):
- a) The amount and percentage of purchases and the balance and percentage of the related payables at the end of the year
- b) The amount and percentage of sales and the balance and percentage of the related receivables at the end of the year
- c) The amount of property transactions and the amount of the resultant gains or losses
- d) The balance of negotiable instrument endorsements or guarantees or pledges of collateral at the end of the year and the purposes
- e) The highest balance, the ending balance, the interest rate range, and total current period interest with respect to the financing of funds
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f) Other transactions that have a material effect on the profit or loss for the year or on the financial position, such as the rendering or receipt of services
c. Intercompany relationships and significant intercompany transactions (Table 9)
d. Information of major shareholders: list all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (Table 10)

41. SEGMENT INFORMATION

Information reported to the chief operating decision maker for the purpose of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. The Group’s reportable segments were as follows: Cement, electric power, investment, engineering, transportation, stainless steel and leasing.

a. Segment revenue and results

Cement Electric power Investment Engineering Transportation Stainless steel Leasing Non-operating income and expenses Profit before income tax		Segment Revenue For the Year Ended December 31 2021 2020 $ 71,185,322 $ 64,906,691 8,421,919 5,932,839 941,137 759,000 440,290 267,213 2,024,534 1,750,929 6,224,892 4,212,480 416,619 411,728 $ 89,654,713 $ 78,240,880	Segment Profit	Segment Profit
			For the Year Ended December 31
		2021 $ 71,185,322 8,421,919 941,137 440,290 2,024,534 6,224,892 416,619 $ 89,654,713	2021 $ 14,451,649 1,499,097 728,885 42,334 340,842 412,757 210,653 17,686,217 4,247,696 $ 21,933,913	2020 $ 16,838,895 1,814,939 488,206 17,641 303,622 (5,661) 212,496 19,670,138 4,473,745 $ 24,143,883

Segment revenue reported above represents revenue generated from external customers.

b. Segment assets and liabilities, and other segment information

The Group does not report segment assets and liabilities or other segment information to the chief operating decision maker. Therefore, no information is disclosed here.

c. Geographical information

The Group operates principally in Taiwan and China.

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The Groups’ revenue from external customers and information about its non-current assets by geographical location are detailed below.

China Taiwan Others	Revenue from External Customers For the Year Ended December 31 2021 2020 $ 51,152,973 $ 46,473,835 35,336,598 28,340,146 3,165,142 3,426,899	Revenue from External Customers For the Year Ended December 31 2021 2020 $ 51,152,973 $ 46,473,835 35,336,598 28,340,146 3,165,142 3,426,899		Non-current Assets	Non-current Assets
				December 31
		2021 $ 51,152,973 35,336,598 3,165,142		2021 $ 40,847,422 50,264,844 531,575	2020 $ 43,750,917 58,844,842 547,351

$ 89,654,713 $ 78,240,880 $ 91,643,841 $ 103,143,110

Revenue is categorized according to customers’ location. Non-current assets exclude those classified as financial instruments, deferred tax assets and post-employment benefit assets.

d. Information of major customers

Taiwan Power Company		Revenue	Revenue	Revenue
		For the Year Ended December 31
		2021 Amount % $ 8,421,919 9		2020
				Amount % $ 5,932,839 8

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TABLE 1

ASIA CEMENT CORPORATION AND SUBSIDIARIES

FINANCING PROVIDED TO OTHERS YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Lender	Borrower	Financial Statement Account	Related Parties	Highest Balance for the Period	Ending Balance (Note 2)	Actual Borrowing Amount	Interest Rate (Note 3)	Nature of Financing	Business Transaction Amounts	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral	Collateral	Financing Limit for Each Borrower (Note 1)	Aggregate Financing Limits (Note 1)
													Item	Value
1	OIHPL	ACCHC	Other receivables	Y	$ 192,703	$ 190,680	$ 190,680	3.01%	Necessary for short-term financing	$ -	Operating capital	$ -	-	$ -	20% of net worth $11,653,929	50% of net worth $29,134,822
2	OHC	SIYDCCL SLCL ACCHC	Other receivables Other receivables Other receivables	Y Y Y	875,921 1,094,902 2,609,964	- - 2,600,184	- - -	- - -	Necessary for short-term financing Necessary for short-term financing Necessary for short-term financing	- - -	Operating capital Operating capital Operating capital	- - -	- - -	- - -	20% of net worth $2,940,370 Same as above Same as above	50% of net worth $7,350,924 Same as above Same as above
3	JYDC	SHYLCP YYDCCL TZOCCL ACCHC	Other receivables Other receivables Other receivables Other receivables	Y Y Y Y	394,165 437,961 525,553 2,627,764	216,682 216,682 216,682 1,300,092	114,841 - - 1,300,092	3.80% - - 2.69%	Necessary for short-term financing Necessary for short-term financing Necessary for short-term financing Necessary for short-term financing	- - - -	Operating capital Operating capital Operating capital Operating capital	- - - -	- - - -	- - - -	20% of net worth $5,654,502 Same as above Same as above Same as above	50% of net worth $14,136,255 Same as above Same as above Same as above
4	HYDCCL	WYXC HXMC WYCPCL SYCPCL ACCHC	Other receivables Other receivables Other receivables Other receivables Other receivables	Y Y Y Y Y	87,592 43,796 87,592 87,592 1,870,474	86,673 - 86,673 - 1,863,465	- - - - 1,863,465	- - - - 2.69%	Necessary for short-term financing Necessary for short-term financing Necessary for short-term financing Necessary for short-term financing Necessary for short-term financing	- - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital	- - - - -	- - - - -	- - - - -	20% of net worth $2,174,682 Same as above Same as above Same as above Same as above	50% of net worth $5,436,706 Same as above Same as above Same as above Same as above
5	WYDC	WYCPCL SYCPCL ACCHC WYXC	Other receivables Other receivables Other receivables Other receivables	Y Y Y Y	109,490 175,184 521,993 109,490	108,341 - 520,037 108,341	- - 520,037 -	- - 2.69% -	Necessary for short-term financing Necessary for short-term financing Necessary for short-term financing Necessary for short-term financing	- - - -	Operating capital Operating capital Operating capital Operating capital	- - - -	- - - -	- - - -	20% of net worth $534,159 Same as above Same as above Same as above	50% of net worth $1,335,397 Same as above Same as above Same as above
6	HGYDC	ACCHC	Other receivables	Y	1,087,485	1,083,410	1,083,410	2.69%	Necessary for short-term financing	-	Operating capital	-	-	-	20% of net worth $1,262,670	50% of net worth $3,156,674
7	SLCL	SLCCL	Other receivables	Y	175,184	173,346	151,677	3.80%	Necessary for short-term financing	-	Operating capital	-	-	-	20% of net worth $1,544,891	50% of net worth $3,862,228
8	SIYDCCL	SYCPCL ACCHC	Other receivables Other receivables	Y Y	391,495 2,609,964	390,028 2,600,184	260,018 2,600,184	3.80% 2.69%	Necessary for short-term financing Necessary for short-term financing	- -	Operating capital Operating capital	- -	- -	- -	20% of net worth $4,989,648 Same as above	50% of net worth $12,474,120 Same as above

Note 1: The net value was calculated based on audited financial statements as of December 31, 2021.

Note 2: The ending balance is the financing credit lines to the respective borrowers approved by the board of directors of lenders.

Note 3: The interest rate was for the year ended December 31, 2021.

Note 4: The foreign currency amounts are expressed in New Taiwan dollars at exchange rate as of December 31, 2021.

95 -

TABLE 2

ASIA CEMENT CORPORATION AND SUBSIDIARIES

ENDORSEMENTS/GUARANTEES PROVIDED YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

No.	Endorser/ Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limits on Each Endorsement/ Guarantee Given on Behalf of Each Party (Note 1)	Maximum Amount Endorsed/ Guaranteed During the Period	Outstanding Endorsement/ Guarantee at the End of the Period	Actual Borrowing Amount	Amount Endorsed/ Guaranteed by Collaterals	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note 1)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship (Note 3)
0	The Corporation	ACE ACP ACP II ACP III ACP IV AIC NHC DCI YTRMC ACL ACM ACM II ACM III ACM IV FSMS AEE YLPPC YSRMC	b b b b b b b b b b b b b b b b b b	50% of net worth ($78,463,462) Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above	$ 834,000 1,112,000 973,000 834,000 834,000 24,531,250 1,174,850 22,958,950 1,000,000 973,000 973,000 834,000 834,000 973,000 30,000 350,000 497,642 150,000	$ 828,900 1,105,200 967,050 828,900 828,900 24,498,250 1,028,150 22,958,950 1,000,000 967,050 967,050 828,900 828,900 967,050 30,000 350,000 482,555 100,000	$ 828,900 552,600 552,600 828,900 690,750 11,060,000 279,000 9,410,000 - 552,600 552,600 552,600 552,600 552,600 30,000 244,000 192,100 -	None None None None None None None None None None None None None None None None None None	0.53 0.70 0.62 0.53 0.53 15.61 0.66 14.63 0.64 0.62 0.62 0.53 0.53 0.62 0.02 0.22 0.31 0.06	100% of net worth ($156,926,923) Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above Same as above	Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y	- - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - -
1	DCI	FSMS	d	50% of net worth ($7,428,847)	100,000	100,000	30,000	None	0.67	100% of net worth ($14,857,694)	Y	-	-
2	YLSS	YLSS	d	50% of net worth ($1,071,796)	100,000	100,000	30,000	100,000	4.67	100% of net worth ($2,143,592)	-	-	-
3	YTRMC	YSRMC	b	50% of net worth ($1,729,074)	48,747	-	-	None	-	100% of net worth ($3,458,148)	Y	-	-
4	FDT	FMT	d	50% of net worth ($454,660)	2,000	-	-	None	-	100% of net worth ($909,320)	-	-	-

(Continued)

96 -

(Concluded)

Note 1: The net value was calculated based on audited financial statements as of December 31, 2021.

Note 2: The foreign currency amounts are expressed in New Taiwan dollars at exchange rate as of December 31, 2021.

Note 3: The relationship between guarantor and guarantee are as follows:

a. A company with which the Corporation engages business.
b. A company in which the Corporation directly and indirectly holds more than 50% of the voting shares.
c. A company that directly and indirectly holds more than 50% of the voting shares in the Corporation.
d. A company in which the Corporation directly and indirectly holds more than 90% of the voting shares.
e. The Corporation fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
f. All capital contributing shareholders make endorsements/guarantees for their jointly invested company in proportion to their shareholding percentages.
g. Companies in the same industry provide among themselves joint and several securities for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.
97 -

TABLE 3

ASIA CEMENT CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES HELD DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December	31, 2021		Note
				Shares or Units	Carrying Amount	Percentage of Ownership (%)	Fair Value
The Corporation DCI	China Conch Venture Holding Deutsche Far Eastern DWS Taiwan Flagship Security Investment Trust Fund Far EasTone Far Eastern Department Stores Ltd. Oriental Union Chemical Corp. CHC Resources Corporation Far Eastern International Bank Taiwan Stock Exchange Corp. China Shanshui Investment Corp Kaohsiung Rapid Transit L’ Hotel de Chine Hotel Pan Asia Engineers & Constructors Corp. Ding Ding Hotel Corp. China Trade & Development Corp. Linkou Recreation Corporation Chang An Fund Taiwan Semiconductor Manufacturing Corp Yuanta/P-shares Taiwan Dividend Plus ETF ASE Technology Holding Co., Ltd. Chicony Electronics CO., Ltd	- - The chairman of the investor is the chairman of the legal representative of the investee The investor and the investee have the same chairman The investor and the investee have the same chairman The investor is the corporate director of the investee The chairman of the investor is the vice-chairman of the investee - - - - The investor is the corporate supervisor of the investee The chairman of the investor is the chairman of the legal representative of the investee - - - - - - -	Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current	11,443,000 10,000,000 31,034,372 80,052,950 63,766,522 22,801,185 82,595,754 9,725,272 49,928 15,873,243 598,121 1,551,395 555,638 250,003 5 145,000 380,000 6,899,000 1,600,000 1,900,000	$ 1,534,208 371,600 2,004,820 1,717,136 1,428,370 1,034,034 887,904 590,032 291,990 69,812 30,097 22,138 10,681 3,902 - 4,011,598 233,700 231,668 170,400 156,370	0.63 - 0.95 5.65 7.20 9.17 2.35 1.16 4.99 5.70 0.20 1.36 0.53 0.38 0.50 - - - 0.04 0.25	$ 1,534,208 371,600 2,004,820 1,717,136 1,428,370 1,034,034 887,904 590,032 291,990 69,812 30,097 22,138 10,681 3,902 - 4,011,598 233,700 231,668 170,400 156,370

(Continued)

98 -

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December	31, 2021		Note
				Shares or Units	Carrying Amount	Percentage of Ownership (%)	Fair Value
	Synnex Technology International Corporation Delta Electronics, Inc. BizLink Holding Inc. Yuanta Global NexGen Communication Innovative Technology ETF Yuanta Global NextGen Communications ETF Chin-Poon Corporation Formosa Plastics Corporation Taiwan Cement Co., Ltd. Yuanta Taiwan High Dividend LowVolatility ETF Tong Hsing Electronic Industries, Ltd. Anhui Conch Cement Company Limited Polaris Taiwan Top 50 Tracker Fund TungThih Electronic Co., Ltd China Resources Cement Holdings Limited TCI Co., Ltd. Industrial and Commercial Bank of China, A share ChinaAMC CSI 300 Index ETF China Mobile Communications Corporation Hsing Ta Cement Co., Ltd. Chunghwa Picture Tubes, Ltd Far Eastern International Bank Mega Financial Holding Co., Ltd. Tripod Technology Corporation Far EasTone Oriental Union Chemical Corp.	- - - - - - - - - - - - - - - - - - - - The chairman of the investor’s ultimate parent company is the vice-chairman of the investee - - The chairman of the investor’s ultimate parent company is the chairman of the legal representative of the investee The investor’s ultimate parent company and the investee have the same chairman	Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current	2,360,000 530,000 530,000 4,000,000 4,000,000 3,150,000 1,020,000 2,191,654 1,500,000 300,000 460,000 400,000 330,000 2,776,000 245,000 2,000,000 160,000 210,000 1,609,854 275,223 39,469,455 9,958,000 1,700,000 215,000 41,246	$ 156,232 145,750 138,330 134,360 131,840 115,605 106,080 105,199 64,155 89,250 63,050 58,200 57,750 57,538 51,083 40,130 34,661 34,585 33,485 - 424,297 354,007 211,650 13,889 924	0.14 0.02 0.39 - - 0.79 0.02 0.03 - 0.17 0.01 - 0.39 0.04 0.21 - 0.06 - 0.47 - 1.12 0.07 0.32 0.01 0.00	$ 156,232 145,750 138,330 134,360 131,840 115,605 106,080 105,199 64,155 89,250 63,050 58,200 57,750 57,538 51,083 40,130 34,661 34,585 33,485 - 424,297 354,007 211,650 13,889 924

(Continued)

99 -

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December	31, 2021		Note
				Shares or Units	Carrying Amount	Percentage of Ownership (%)	Fair Value
NHC YTRMC FMT FDT AEE	Far Eastern International Bank Far Eastern International Leasing Corporation Far Eastern Department Stores Ltd. Oriental Union Chemical Corp. CHC Resources Corporation Ding Ding Hotel Corp. Picvue Electronics Co., Ltd. Far EasTone Far EasTone Everest Textile Co., Ltd. Oriental Union Chemical Corp. Yi Tong Fiber Co., Ltd. Far Eastern Department Store Ltd. Far Eastern International Bank Oriental Union Chemical Corp. Far Eastern Department Store Ltd. Ding & Ding Management Consultants Co., Ltd. Far EasTone Ding & Ding Management Consultants Co., Ltd.	The chairman of the investor’s ultimate parent company is the vice-chairman of the investee The investor is the corporate director of the investee The investor’s ultimate parent company and the investee have the same chairman The investor’s ultimate parent company and the investee have the same chairman The major shareholder of the investor is the corporate director of the investee The chairman of the investor’s ultimate parent company is the chairman of the legal representative of the investee - The chairman of the investor’s ultimate parent company is the chairman of the legal representative of the investee The chairman of the investor’s ultimate parent company is the chairman of the legal representative of the investee The chairman of the investor’s major shareholder is the chairman of the legal representative of the investee The investor’s ultimate parent company and the investee have the same chairman - The investor’s ultimate parent company and the investee have the same chairman The chairman of the investor’s ultimate parent company is the vice-chairman of the investee The investor’s ultimate parent company and the investee have the same chairman The investor’s ultimate parent company and the investee have the same chairman The investor is the corporate supervisor of the investee The chairman of the investor’s ultimate parent company is the chairman of the legal representative of the investee The investor is the corporate director of the investee	Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - noncurrent	102,031,578 45,258,938 13,630,966 10,506,792 4,812,514 213,442 161,700 50,000 230,000 18,314,020 2,256,782 5,256,454 1,185,713 309,966 3,254,125 935,029 2,053,530 120,000 646,873	$ 1,096,839 602,813 292,384 235,352 218,248 4,103 - 3,230 14,858 176,364 50,552 41,691 25,434 3,332 72,892 20,056 8,376 7,752 900	2.90 10.14 0.96 1.19 1.94 0.21 0.06 - - 2.64 0.25 5.94 0.08 0.01 0.37 0.07 16.00 - 5.04	$ 1,096,839 602,813 292,384 235,352 218,248 4,103 - 3,230 14,858 176,364 50,552 41,691 25,434 3,332 72,892 20,056 8,376 7,752 900	Note 3

(Continued)

100 -

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December	31, 2021		Note
				Shares or Units	Carrying Amount	Percentage of Ownership (%)	Fair Value
YLPPC AIC	Far EasTone Yamay International Development Corp. Grand Power Fund Taiwan Semiconductor Manufacturing Corp. Yuanta/P-shares Taiwan Dividend Plus ETF Hon Hai Precision Industry Co., Ltd. ASE Technology Holding Co., Ltd. Chicony Electronics Co., Ltd. Synnex Technology International Corporation Delta Electronics, Inc. BizLink Holding Inc Yuanta Global NexGen Communication Innovative Technology ETF Yuanta Global NextGen Communications ETF Hsing Ta Cement Co., Ltd. Chin-Poon Corporation Formosa Plastics Corporation Tong Hsing Electronic Industries, Ltd. China AMC CSI 300 Index ETF China Mobile Communications Corporation TCI Co., Ltd. Yuanta Taiwan High Dividend LowVolatility ETF China Construction Bank Corporation, A share Anhui Conch Cement Company Limited TungThih Electronic Co., Ltd.	The chairman of the investor’s ultimate parent company is the chairman of the legal representative of the investee - - - - - - - - - - - - - - - - - - - - - - -	Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current	105,000 15 122,000 380,000 6,906,000 1,720,000 1,600,000 1,900,000 2,360,000 530,000 530,000 4,000,000 4,000,000 5,881,650 3,150,000 1,020,000 300,000 380,000 448,000 330,000 1,500,000 2,500,000 460,000 330,000	$ 6,783 - 3,373,489 233,700 231,903 178,880 170,400 156,370 156,232 145,750 138,330 134,360 131,840 122,338 115,605 106,080 89,250 82,319 73,781 68,805 64,155 63,488 63,050 57,750	- - - - - 0.01 0.04 0.25 0.14 0.02 0.39 - - 1.72 0.79 0.02 0.17 0.14 - 0.28 - - 0.01 0.39	$ 6,783 - 3,373,489 233,700 231,903 178,880 170,400 156,370 156,232 145,750 138,330 134,360 131,840 122,338 115,605 106,080 89,250 82,319 73,781 68,805 64,155 63,488 63,050 57,750

(Continued)

101 -

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December	31, 2021		Note
				Shares or Units	Carrying Amount	Percentage of Ownership (%)	Fair Value
ACE ACP ACP II	China Resources Cement Holdings Limited Nan Ya Plastics Corporation Tripod Technology Corporation Far EasTone Inventec Corporation China Life Insurance Company Limited, H share Far Eastern International Bank Ding Shen Investment Co., Ltd. Far Eastern Department Store Ltd. Oriental Union Chemical Corp. Hsin Nan Construction Co., Ltd. Fides Global Fund SPC-Innovation SP3 Grand Power Fund Noah Global SPC - Ark SP1 NOVA HORIZON CAPITAL SPC - CLEAN ENERGY SP1 Fides Global Fund SPC-Innovation SP3 Noah Global SPC - Ark SP1 NOVA HORIZON CAPITAL SPC - CLEAN ENERGY SP1 Cementon Micronesia L.L.C. Fides Global Fund SPC-Innovation SP3 Noah Global SPC - Ark SP1 NOVA HORIZON CAPITAL SPC - CLEAN ENERGY SP1	- - - The chairman of the investor’s ultimate parent company is the chairman of the legal representative of the investee - - The chairman of the investor’s ultimate parent company is the vice-chairman of the investee The investor is the corporate director of the investee The investor’s ultimate parent company and the investee have the same chairman The investor’s ultimate parent company and the investee have the same chairman - - - - - - - - - - - -	Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current	2,776,000 3,286,000 1,700,000 1,426,303 2,882,000 600,000 141,518,058 40,328,640 11,361,972 1,552,156 2,696 10,000 9,960 10,000 10,000 10,000 10,000 10,000 100 10,000 10,000 10,000	$ 57,538 280,624 211,650 92,139 71,906 27,279 1,521,319 430,710 243,714 34,768 - 276,753 276,625 276,516 276,455 276,753 276,516 276,455 107,757 276,753 276,516 276,455	0.04 0.04 0.32 0.04 0.08 - 4.03 18.00 0.80 0.18 - - - - - - - - 10.00 - - -	$ 57,538 280,624 211,650 92,139 71,906 27,279 1,521,319 430,710 243,714 34,768 - 276,753 276,625 276,516 276,455 276,753 276,516 276,455 107,757 276,753 276,516 276,455

(Continued)

102 -

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December	31, 2021		Note
				Shares or Units	Carrying Amount	Percentage of Ownership (%)	Fair Value
ACP III ACP IV ACM ACM II ACM III ACM IV ACL	Fides Global Fund SPC-Innovation SP3 Grand Power Fund Noah Global SPC - Ark SP1 NOVA HORIZON CAPITAL SPC - CLEAN ENERGY SP1 Fides Global Fund SPC-Innovation SP3 Grand Power Fund Noah Global SPC - Ark SP1 NOVA HORIZON CAPITAL SPC - CLEAN ENERGY SP1 Fides Global Fund SPC-Innovation SP3 Noah Global SPC - Ark SP1 NOVA HORIZON CAPITAL SPC - CLEAN ENERGY SP1 Fides Global Fund SPC-Innovation SP3 Noah Global SPC - Ark SP1 NOVA HORIZON CAPITAL SPC - CLEAN ENERGY SP1 Fides Global Fund SPC-Innovation SP3 Noah Global SPC - Ark SP1 NOVA HORIZON CAPITAL SPC - CLEAN ENERGY SP1 Fides Global Fund SPC-Innovation SP3 Noah Global SPC - Ark SP1 NOVA HORIZON CAPITAL SPC - CLEAN ENERGY SP1 Fides Global Fund SPC-Innovation SP3 Noah Global SPC - Ark SP1 NOVA HORIZON CAPITAL SPC - CLEAN ENERGY SP1	- - - - - - - - - - - - - - - - - - - - - - -	Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current	10,000 9,960 10,000 10,000 10,000 9,960 10,000 5,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000 10,000	$ 276,753 276,625 276,516 276,455 276,753 276,625 276,516 138,227 276,753 276,516 276,455 276,753 276,516 276,455 276,753 276,516 276,455 276,753 276,516 276,455 276,753 276,516 276,455	- - - - - - - - - - - - - - - - - - - - - - -	$ 276,753 276,625 276,516 276,455 276,753 276,625 276,516 138,227 276,753 276,516 276,455 276,753 276,516 276,455 276,753 276,516 276,455 276,753 276,516 276,455 276,753 276,516 276,455

(Continued)

103 -

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December	31, 2021		Note
				Shares or Units	Carrying Amount	Percentage of Ownership (%)	Fair Value
FSMS YLT YLSS KCC KCCL OCPL ACSPL ACCHC	Stone Industry Resource System Corp Polaris Taiwan Top 50 Tracker Fund Far Eastern International Bank Far EasTone Far EasTone CSOP FTSE China A50 ETF Opas Fund Segregated Portfolio Tranche Allianz US High Yield Fund Hiap Hoe Ltd. Opas Fund Segregated Portfolio Tranche B United Emerging Markets Bond Funds United Growth Fund DBS Group Guocoland Ltd. Hong Leong Asia INTRACO Engro Corp Ltd. Opas Fund Segregated Portfolio Tranche B	- - The chairman of the investor’s ultimate parent company is the vice-chairman of the investee The chairman of the investor’s ultimate parent company is the chairman of the legal representative of the investee The chairman of the investor’s ultimate parent company is the chairman of the legal representative of the investee - Related party in substance - - Related party in substance - - - - - - - Related party in substance	Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - noncurrent Financial assets at fair value through other comprehensive income - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current	10,000 350,000 3,163,230 71,099 130,000 300,000 1,606 97,741 44,260 6,660 3,232,758 745,068 34,396 26,666 20,000 46,875 2,000 7,308	$ 70 50,925 34,005 4,593 8,398 18,791 103,636 17,709 586 259,482 76,783 52,133 22,883 820 344 482 54 282,564	0.15 - 0.09 - - - - - - - - - - - - - - -	$ 70 50,925 34,005 4,593 8,398 18,791 103,636 17,709 586 259,482 76,783 52,133 22,883 820 344 482 54 282,564

Note 1: Marketable securities in this table are shares, bonds, beneficiary certificates and securities derived from these items under IFRS 9 “Financial Instruments: Recognition and Measurement”.

Note 2: The carrying amounts of financial instruments measured at fair values are adjusted for fair value less accumulated impairment loss; the carrying amounts of financial instruments not measured at fair values are the original cost or amortized cost less accumulated impairment loss.

Note 3: 5,000 thousand shares ($107,250 thousand) of the securities are pledged as collaterals for bank loans of DCI.

(Concluded)

104 -

TABLE 4

ASIA CEMENT CORPORATION AND SUBSIDIARIES

MARKETABLE SECURITIES ACQUIRED AND DISPOSED OF AT COSTS OR PRICES OF AT LEAST NT$300 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Type and Name of Marketable Securities	Financial Statement Account	Counterparty	Relationship	Beginning Balance	Beginning Balance	Acquisition	Acquisition		Disposal	Disposal		Ending	Balance
					Shares/Units	Amount	Shares/Units	Amount	Shares/Units	Amount	Carrying Amount	Gain (Loss) on Disposal	Shares/Units	Amount
ACCHC	Note receivables EastPatron Limited Marble Arch Industrial Limited Prime Harbour Holdings Limited Sino Horizon International Limited Wynn Fortune Global Limited	Financial assets at amortized cost - current Same as above Same as above Same as above Same as above	AMC Wanhai Securities Limited AMC Wanhai Securities Limited AMC Wanhai Securities Limited AMC Wanhai Securities Limited AMC Wanhai Securities Limited	- - - - -	700 (Note) 700 (Note) 790 (Note) 700 (Note) 790 (Note)	$ 1,990,098 1,990,098 2,245,967 1,990,098 2,245,967	- - - - -	$ - - - - -	700 (Note) 700 (Note) 790 (Note) 700 (Note) 790 (Note)	$ 1,955,730 1,955,730 2,212,366 1,978,186 2,212,366	$ 1,952,361 1,953,847 2,211,076 1,977,381 2,211,196	$ 3,369 1,883 1,290 805 1,170	- - - - -	$ - - - - -

Note: The price per subscription unit is US$100,000.

105 -

TABLE 5

ASIA CEMENT CORPORATION AND SUBSIDIARIES

TOTAL PURCHASE FROM OR SALE TO RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Purchasing or (Selling) Company Name	Related Party	Relationship		Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts (Payable) or Receivable	Notes/Accounts (Payable) or Receivable	Note
			Purchase (Sale)	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
The Corporation YTRMC ACSPL FMT NHC YLT YLPPC YSRMC FDT JYDC YYDCCL SIYDCCL	YTRMC ACSPL U-Ming U-Ming Singapore YSRMC NHC YLT The Corporation CHC Resources Corporation Far Eastern General Construction Inc. Alliance Concrete Singapore Pte. Ltd. The Corporation FENC Air Liquide Far Eastern Co. The Corporation CHC Resources Corporation CHC Resources Corporation The Corporation Far Eastern General Construction Inc. The Corporation Oriental Petrochemical (Taiwan) Co., Ltd. Oriental Union Chemical Corp YYDCCL TZOCCL NYDC WYDC NYDC HGYDC JYLTC RYNM WAMTC NYLC HYDCCL JYDC WAMTC SLCL	A subsidiary of the Corporation A subsidiary of the Corporation An investee accounted for by equity method A subsidiary of an investee accounted for by equity method A sub-subsidiary of the Corporation A subsidiary of the Corporation A subsidiary of the Corporation Parent company Other related party Other related party An investee accounted for by equity method Parent company An investee accounted for by equity method Other related party Parent company Other related party Other related party Parent company Other related party Parent company Other related party Other related party The same ultimate parent company The same ultimate parent company A subsidiary of the Corporation The same ultimate parent company A subsidiary of the Corporation The same ultimate parent company A subsidiary of the Corporation A subsidiary of the Corporation An investee accounted for by equity method A subsidiary of the Corporation The same ultimate parent company The same ultimate parent company An investee accounted for by equity method The same ultimate parent company	Sales Sales Sales freight expense Freight-in Sales Purchase Sales freight expense Purchase Purchase Sales Sales Purchase Sales Sales Sales Sales Sales Sales Sales Purchase Sales Sales Sales Sales Purchase Sales Sales Purchase Sales freight expense Sales Sales freight expense Purchase Sales Purchase Sales freight expense Sales	$ (1,743,283) (611,164) 479,499 300,067 (236,760) 227,810 145,697 1,743,283 457,558 (331,964) (818,258) 611,164 (316,960) (158,166) (227,810) (109,540) (191,208) (145,697) (172,853) 236,760 (164,904) (114,825) (2,223,890) (1,385,707) 1,005,273 (728,150) (306,634) 276,708 240,155 (215,513) 121,754 121,279 (120,658) 2,223,890 104,299 (1,084,288)	(19) (7) 5 4 (3) 3 2 18 5 (3) (86) 68 (28) (14) (49) (23) (57) (43) (40) 23 (18) (12) (10) (6) 6 (3) (1) 2 1 (1) 1 1 (1) 77 3 (11)	Purchase 45 days after monthly closing Average 30 days Purchase 30 days after monthly closing Average 10 days Purchase 45 days after monthly closing Purchase 45 days after monthly closing Average 30 days Purchase 45 days after monthly closing Purchase 45 days after monthly closing Average 90 days Average 60 days Average 30 days Purchase 30 days after monthly closing Purchase 120 days after monthly closing Purchase 45 days after monthly closing Purchase 45 days after monthly closing Purchase 30 days after monthly closing Average 30 days Within 90 days Purchase 45 days after monthly closing Purchase 110 days after monthly closing Purchase 75 days after monthly closing Within 50 days Within 50 days Within 50 days Within 50 days Within 50 days Within 50 days Within 50 days Within 50 days Within 90 days Within 50 days Within 50 days Within 50 days Within 90 days Within 90 days	$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	$ 379,895 64,563 (69,740) - 34,186 (27,620) (24,177) (379,895) (57,158) 125,840 164,353 (64,563) 46,664 63,437 27,620 8,878 26,768 24,177 18,829 (34,186) 48,160 9,725 255,677 171,164 (143,090) 107,878 21,181 (116,606) (32,217) - (16,038) (11,878) 28,498 (255,677) (10,619) 32,155	38 6 (3) - 3 (1) (1) (18) (3) 3 88 (49) 23 31 44 14 53 47 20 (25) 36 7 10 6 (11) 4 1 (9) (2) - (1) (1) 1 (88) (4) 2

(Continued)

106 -

Purchasing or (Selling) Company Name	Related Party	Relationship		Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts (Payable) or Receivable	Notes/Accounts (Payable) or Receivable	Note
			Purchase (Sale)	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
WYDC HYDCCL HYDCCL HGYDC TZOCCL SLCL NYDC JYLTC RYNM SYTCL NYLC	JYDC HGYDC HXMC JYDC HYDCCL JYDC JYDC SIYDCCL SYTCL JYDC JYDC JYDC JYDC SLCL JYDC	The same ultimate parent company The same ultimate parent company An investee accounted for by equity method The same ultimate parent company The same ultimate parent company The same ultimate parent company The same ultimate parent company The same ultimate parent company The same ultimate parent company Parent company Parent company Parent company Parent company The same ultimate parent company Parent company	Purchase Purchase Purchase Purchase Sales Sales Purchase Purchase Sales freight expense Sales Purchase Sales Purchase Sales Sales	$ 728,150 594,164 153,074 120,658 (594,164) (276,708) 1,385,707 1,084,288 190,978 (1,005,273) 306,634 (240,155) 215,513 (190,978) (121,279)	65 10 3 2 (15) (7) 97 24 3 (100) 33 (72) 96 (61) (19)	Within 50 days Within 50 days Within 50 days Within 50 days Within 50 days Within 50 days Within 50 days Within 90 days Within 90 days Within 50 days Within 50 days Within 50 days Within 50 days Within 90 days Within 50 days	$ - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - -	$ (107,878) (8,362) (16,232) (28,498) 8,362 116,606 (171,164) (32,155) (13,333) 143,090 (21,181) 32,217 - 13,333 11,878	(80) (3) (5) (9) 2 25 (95) (14) (6) 100 (62) 80 - 43 5

(Concluded)

107 -

TABLE 6

ASIA CEMENT CORPORATION AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES OF AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amounts Received in Subsequent Period	Allowance for Impairment Loss
					Amount	Action Taken
The Corporation ACSPL YTRMC JYDC NYDC HGYDC SIYDCCL HYDCCL JYDC HGYDC WYDC SIYDCCL ACIHPL SLCL JYDC	YTRMC Alliance Concrete Singapore Pte. Ltd. Far Eastern General Construction Inc. YYDCCL TZOCCL WYDC JYDC JYDC ACCHC ACCHC ACCHC ACCHC ACCHC SYCPCL ACCHC SLCCL SHYLCP	A subsidiary of the Corporation An investee accounted for by equity method Other related party The same ultimate parent company The same ultimate parent company The same ultimate parent company Parent company The same ultimate parent company Parent company Parent company Parent company Parent company Parent company The same ultimate parent company Parent company A subsidiary of the Corporation The same ultimate parent company	$ 449,255 164,353 125,840 255,677 171,164 107,878 143,090 116,606 2,623,907 1,885,483 1,309,426 1,096,130 526,181 260,320 194,497 151,854 114,975	4.89 times 5.31 times 2.23 times 9.07 times 9.87 times 4.88 times 5.73 times 3.99 times Note Note Note Note Note Note Note Note Note	$ - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - -	$ 385,216 164,353 47,047 255,677 171,164 107,877 129,840 116,060 - - - - - - - - -	$ - - - - - - - - - - - - - - - - -

Note: The accounts receivable from financing.

108 -

TABLE 7

ASIA CEMENT CORPORATION AND SUBSIDIARIES

NAMES, LOCATIONS, AND OTHER INFORMATION OF INVESTEES ON WHICH THE CORPORATION EXERCISES SIGNIFICANT INFLUENCE (EXCLUDING INVESTMENT IN MAINLAND CHINA) FOR THE YEAR ENDED DECEMBER 31, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance	as of December 31, 2021	as of December 31, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				December 31, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Amount
The Corporation DCI	ACCHC FENC DCI CHP U-Ming CSCGL ACSPL AIC YDC YTRMC YYI YLSS OSC FMT FEDSDL YDLC NHC YLT AEE YLPPC EISF SIHL FEC FENC YDC CSCGL KCC Catalyst Tranche Three FSMS Catalyst Tranche Two Catalyst Tranche One U-Ming ACL	Cayman Taiwan Taiwan Taiwan Taiwan Cayman Singapore Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan B.V.I. Taiwan Taiwan Taiwan Cayman Hong Kong B.V.I. Taiwan B.V.I. B.V.I. Taiwan B.V.I.	Investment Textile Investment Power plant Marine transportation Investment Cement Investment Investment Ready-mixed concrete, cement - related products Investment Stainless steel Broker Transportation Retails Leasing Cement, granulated blast-furnace slag Transportation Engineering Cement - related products Iron and steel Investment Construction Textile Investment Investment Cement Investment Mining excavation, mineral processing and sales Investment Investment Marine transportation Investment	$ 13,660,637 3,459,787 2,556,033 8,502,050 510,236 4,821,008 188,277 1,212,679 2,232,220 1,042,261 911,058 2,661,240 154,207 70,177 500,000 309,049 411,106 25,012 7,906 145,079 31,463 2,898 140,138 1,263,385 289,987 872,619 36,024 236,880 112,096 112,920 123,120 27,619 831,346	$ 13,660,637 3,459,787 2,556,033 8,501,564 510,236 4,821,008 186,958 1,212,679 2,232,220 1,042,260 911,058 2,661,240 154,207 70,174 500,000 309,049 411,106 25,012 7,895 145,061 31,463 2,898 140,138 1,263,385 289,987 872,619 36,024 123,960 112,096 - 123,120 27,619 553,246	1,061,209,202 1,272,277,085 699,853,425 568,307,076 331,701,152 331,878,315 10,499,432 322,729,001 178,707,648 199,991,832 155,000,823 200,000,000 136,713,259 29,553,934 53,250,000 34,640,189 26,138,828 5,160,754 8,093,680 16,264,709 3,199,823 90,000 127,471,221 82,812,887 72,989,438 56,297,000 1,127,000 8,000 1,294,270 4,000 4,000 468,486 28,500,000	67.73 23.77 99.99 99.70 39.25 7.62 99.99 100.00 35.50 99.99 29.92 100.00 18.93 99.95 25.00 43.60 99.98 51.61 99.74 83.94 40.40 100.00 33.76 1.55 14.50 1.29 49.00 25.00 99.56 25.00 25.00 0.06 100.00	$ 50,282,807 37,915,642 14,857,396 10,682,130 10,075,328 7,100,277 5,189,295 4,890,550 3,095,471 3,458,148 2,584,547 2,292,526 2,016,395 1,571,941 640,234 377,521 319,916 271,289 183,476 123,603 87,060 52,506 5,163,484 2,433,978 1,270,339 1,203,469 442,960 235,904 121,857 116,675 111,512 30,375 1,040,628	$ 7,671,037 9,684,584 1,124,160 1,046,477 4,892,584 12,065,305 574,930 891,548 (222,131) 1,226,966 744,713 359,381 294,562 307,096 73,257 20,500 56,926 58,328 60,392 43,563 24,027 (1,121) 1,046,486 9,684,584 (222,131) 12,065,305 23,511 425 (5,744) 25,833 (332) 4,892,584 88,895	$ 5,195,593 1,460,906 1,124,138 1,043,341 1,920,354 852,970 574,829 891,548 (86,360) 1,226,953 222,819 351,095 55,759 306,938 18,314 8,938 56,915 30,103 60,189 36,560 9,707 (1,121) Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable	A subsidiary of the Corporation A subsidiary of the Corporation A subsidiary of the Corporation A subsidiary of the Corporation A subsidiary of the Corporation A subsidiary of the Corporation A subsidiary of the Corporation A subsidiary of the Corporation A subsidiary of the Corporation A subsidiary of the Corporation A subsidiary of the Corporation A subsidiary of the Corporation A subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation

(Continued)

109 -

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance	as of December 31, 2021	as of December 31, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				December 31, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Amount
NHC YTRMC FMT FDT AEE YLPPC AIC	ACM ACM II ACM III ACM IV CSCGL PGIC FENC U-Ming YTV YSRMC AOG FDT FENC YDEC FENC U-Ming CSCGL ACCHC U-Ming YDEC YLPCIP AOG FENC CSCGL U-Ming EISF CHP FMT FDT FSMS AEE DCI NHC	B.V.I. B.V.I. B.V.I. B.V.I. Cayman Taiwan Taiwan Taiwan Vietnam Taiwan Guam Taiwan Taiwan Taiwan Taiwan Taiwan Cayman Cayman Taiwan Taiwan India Guam Taiwan Cayman Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan	Investment Investment Investment Investment Investment Granulated blast-furnace slag Textile Marine transportation Ready-mixed concrete Ready-mixed concrete Investment Transportation Textile Retail Textile Marine transportation Investment Investment Marine transportation Retail Tunnel lining segments Investment Textile Investment Marine transportation Iron and steel Power plant Transportation Transportation Mining excavation, mineral processing and sales Engineering Investment Cement, granulated blast-furnace slag	$ 810,431 546,917 546,917 762,554 282,957 36,771 15,240 1,027 201,823 69,955 236,240 30,894 28,773 160,424 31,322 1,891 266,942 50,541 38,931 20,776 8,338 66,816 405,473 556,895 77,446 15,649 376 176 110 119 116 76 78	$ 532,331 268,817 268,817 484,454 282,957 36,771 15,240 1,027 201,823 69,955 236,240 30,894 40,263 160,424 31,322 1,891 266,942 50,541 38,931 20,776 8,338 66,816 405,473 556,895 77,446 15,649 376 176 110 119 116 76 78	27,800,000 19,300,000 19,300,000 26,200,000 9,250,000 3,287,550 1,739,978 64,143 (Note) 6,995,000 (Note) 37,959,570 3,155,299 33,326,840 1,020,000 50,000 8,368,000 3,161,500 3,485,997 4,811,304 (Note) (Note) 15,430,293 31,528,000 7,796,914 660,000 45,568 5,000 9,717 5,000 6,000 6,346 5,000	100.00 100.00 100.00 100.00 0.21 31.00 0.03 0.01 100.00 69.95 95.04 99.94 0.06 26.95 0.02 0.01 0.19 0.20 0.41 3.89 99.99 4.96 0.29 0.72 0.92 8.33 0.01 0.02 0.03 0.38 0.07 - 0.02	$ 926,955 625,247 676,158 1,080,557 197,013 55,617 38,893 843 282,148 165,219 (18,432) 908,774 75,473 628,571 30,116 1,707 178,237 110,441 31,413 90,652 1,697 (962) 635,350 673,075 63,387 17,951 850 272 199 125 120 76 80	$ 75,476 38,448 44,022 93,334 12,065,305 20,551 9,684,584 4,892,584 6,204 111,603 (11,542) 146,757 9,684,584 131,827 9,684,584 4,892,584 12,065,305 7,671,037 4,892,584 131,827 - (11,542) 9,684,584 12,065,305 4,892,584 24,027 1,046,477 307,096 146,757 (5,744) 60,392 1,124,160 56,926	Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable	A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation A subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation A subsidiary of the Corporation A subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation A subsidiary of the Corporation A subsidiary of the Corporation A subsidiary of the Corporation
											(Continued)

110 -

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	Balance	as of December 31, 2021	as of December 31, 2021	Net Income (Loss) of the Investee	Investment Income (Loss)	Note
				December 31, 2021	December 31, 2020	Shares	Percentage of Ownership	Carrying Amount
YLT ACE ACP ACP II ACP III ACP IV ACL ACM ACM II ACM III ACM IV KCC JFTL AOG ACSPL ACCHC	YSRMC YTRMC ACP. ACP II. ACP III ACP IV ACE U-Ming CSCGL Opas Fund Segregated Portfolio Company Drive Catalyst SPC CSCGL CSCGL CSCGL CSCGL CSCGL CSCGL CSCGL CSCGL CSCGL KCCL Join Fortune Trading Ltd. Profit Enterprises Int’l Ltd. Perez-Mtec-ACC, LLC Asia Oriental Concrete, LLC ACCHC Alliance Concrete Singapore Pte. Ltd. OCPL PIHPL	Taiwan Taiwan B.V.I. B.V.I. B.V.I. B.V.I. B.V.I. Taiwan Cayman Cayman Cayman Cayman Cayman Cayman Cayman Cayman Cayman Cayman Cayman Cayman Hong Kong B.V.I. Hong Kong Guam Guam Cayman Singapore Singapore B.V.I.	Ready-mixed concrete Ready-mixed concrete, cement - related products Investment Investment Investment Investment Investment Marine transportation Investment Investment Investment Investment Investment Investment Investment Investment Investment Investment Investment Investment Ready-mixed concrete Investment Barge transportation Ready-mixed concrete Ready-mixed concrete Investment Ready-mixed concrete Ready-mixed concrete, leasing Investment	$ 37 53 2,072,420 807,911 553,917 553,910 582,543 58,840 266,882 1,531 494 1,959,250 544,689 290,967 292,032 567,556 554,533 293,393 292,743 504,078 35 66,218 4,291 8,289 219,659 552,600 142,590 346,290 24,331,337	$ 37 53 1,794,320 529,811 275,817 275,810 304,443 58,840 266,882 1,531 494 1,959,250 544,689 290,967 292,032 567,556 554,533 293,393 292,743 504,078 36 68,552 22,222 8,529 226,019 568,600 150,290 364,990 25,035,828	5,000 7,268 68,550,000 27,800,000 19,300,000 19,110,000 20,215,000 6,348,103 7,480,000 33 33 107,536,000 36,865,000 14,790,000 18,514,000 35,569,000 30,251,000 16,058,000 18,477,000 37,410,000 10,000 2,427,307 6,100,000 (Note) (Note) 63,790,798 6,000,000 17,000,000 9,379,303	0.05 - 100.00 100.00 100.00 100.00 100.00 0.75 0.17 33.00 33.00 2.47 0.85 0.34 0.43 0.82 0.70 0.37 0.42 0.86 100.00 100.00 50.00 33.33 71.68 4.07 50.00 100.00 100.00	$ 44 53 2,642,204 1,072,944 598,911 676,521 444,204 301,057 159,383 1,498 467 2,301,001 790,022 316,576 397,915 762,205 649,210 344,032 393,730 800,750 168,471 4,180 4,303 40 (30,702) 3,021,571 445,899 244,832 83,270,068	$ 111,603 1,226,966 278,535 92,138 34,685 45,171 15,650 4,892,584 12,065,305 10 4 12,065,305 12,065,305 12,065,305 12,065,305 12,065,305 12,065,305 12,065,305 12,065,305 12,065,305 17,204 889 1,973 - (16,278) 7,671,037 406,473 3,596 8,178,776	Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable Not applicable	A sub-subsidiary of the Corporation A subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation A subsidiary of the Corporation A sub-subsidiary of the Corporation A sub-subsidiary of the Corporation

Note: This is not a company limited by shares.

(Concluded)

111 -

TABLE 8

ASIA CEMENT CORPORATION AND SUBSIDIARIES

INVESTMENT IN MAINLAND CHINA YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 2)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2021	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2021	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 1)	Carrying Amount as of December 31, 2021	Accumulated Repatriation of Investment Income as of December 31, 2021
					Outward	Inward
SHYLCP JYDC WYDC SHYFCP OHC NYLC NYDC SIYDCCL CYCPCL JYLTC HYDCCL	It manufactures and sells ready-mixed concrete and cement - related products It manufactures and sells cement, clinker and ready-mixed concrete (including cement - related products). It manufactures and sells cement, slag powder and slag cement. It manufactures and sells ready-mixed concrete and cement - related products Investment It manufactures and sells ready-mixed concrete and cement - related products It manufactures and sells cement, slag powder and slag cement. Cement, clinker, slag powder and ready-mixed concrete (including cement - related products) It manufactures and sells ready-mixed concrete and cement - related products Transportation Cement, clinker, slag powder and ready-mixed concrete (including cement - related products)	US$15,000 (equivalent to NT$414,450 thousand) US$356,104 (equivalent to NT$9,839,154 thousand) US$36,140 (equivalent to NT$998,548 thousand) N/A US$204,191 (equivalent to NT$5,641,797 thousand) RMB60,000 (equivalent to NT$260,018 thousand) RMB90,000 (equivalent to NT$390,028 thousand) US$368,340 (equivalent to NT$10,177,234 thousand) US$4,100 (equivalent to NT$113,283 thousand) RMB12,500 (equivalent to NT$54,171 thousand) US$154,800 (equivalent to NT$4,277,124 thousand)	(2) (2) (2) N/A (2) (2) (2) (2) (2) (2) (2)	US$12,000 (equivalent to NT$331,560 thousand) US$143,817 (equivalent to NT$3,973,664 thousand) US$26,550 (equivalent to NT$733,577 thousand) US$1,270 (equivalent to NT$35,090 thousand) US$55,000 (equivalent to NT$1,519,650 thousand) - - US$94,594 (equivalent to NT$2,613,632 thousand) US$2,100 (equivalent to NT$58,023 thousand) - US$57,600 (equivalent to NT$1,591,488 thousand)	$ - - - - - - - - - - -	$ - - - - - - - - - - -	US$12,000 (equivalent to NT$331,560 thousand) US$143,817 (equivalent to NT$3,973,664 thousand) US$26,550 (equivalent to NT$733,577 thousand) US$1,270 (equivalent to NT$35,090 thousand) US$55,000 (equivalent to NT$1,519,650 thousand) - - US$94,594 (equivalent to NT$2,613,632 thousand) US$2,100 (equivalent to NT$58,023 thousand) - US$57,600 (equivalent to NT$1,591,488 thousand)	RMB2,112 (equivalent to NT$9,175 thousand) RMB1,021,767 (equivalent to NT$4,438,822 thousand) RMB(14,195) (equivalent to NT$(61,667) thousand) N/A RMB161,179 (equivalent to NT$700,203 thousand) RMB(21,266) (equivalent to NT$(92,385) thousand) RMB1,348 (equivalent to NT$5,856 thousand) RMB669,925 (equivalent to NT$2,910,328 thousand) RMB4,226 (equivalent to NT$18,359 thousand) RMB4,470 (equivalent to NT$19,419 thousand) RMB106,510 (equivalent to NT$462,707 thousand)	72.00 68.40 72.00 N/A 72.00 68.40 52.20 72.00 72.00 70.12 72.00	RMB1,520 (equivalent to NT$6,603 thousand) RMB698,889 (equivalent to NT$3,036,156 thousand) RMB(10,220) (equivalent to NT$(44,398) thousand) N/A RMB116,049 (equivalent to NT$504,147 thousand) RMB(14,546) (equivalent to NT$(63,192) thousand) RMB704 (equivalent to NT$3,058 thousand) RMB482,346 (equivalent to NT$2,095,436 thousand) RMB3,043 (equivalent to NT$13,220 thousand) RMB3,135 (equivalent to NT$13,619 thousand) RMB76,687 (equivalent to NT$333,148 thousand)	RMB9,117 (equivalent to NT$39,510 thousand) RMB4,462,391(equivale nt to NT$19,338,396 thousand) RMB443,731 (equivalent to NT$1,922,970 thousand) N/A RMB2,442,596 (equivalent to NT$10,585,332 thousand) RMB101,023 (equivalent to NT$437,797 thousand) RMB84,382 (equivalent to NT$365,681 thousand) RMB4,144,953 (equivalent to NT$17,962,734 thousand) RMB56,665 (equivalent to NT$245,566 thousand) RMB26,152 (equivalent to NT$113,333 thousand) RMB1,806,531 (equivalent to NT$7,828,855 thousand)	US$800 (equivalent to NT$22,104 thousand) US$50,781 (equivalent to NT$1,403,079 thousand) RMB1,050,973 (equivalent to NT$4,554,539 thousand) US$4,469 (equivalent to NT$123,478 thousand) RMB3,533 (equivalent to NT$15,311 thousand) - US$809 (equivalent to NT$22,353 thousand) - - US$27,009 (equivalent to NT$746,259 thousand) RMB499,190 (equivalent to NT$2,163,310 thousand) US$77 (equivalent to NT$2,128 thousand) - US$12,990 (equivalent to NT$358,914 thousand) RMB221,904 (equivalent to NT$961,652 thousand)

(Continued)

112 -

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 2)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2021	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2021	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 1)	Carrying Amount as of December 31, 2021	Accumulated Repatriation of Investment Income as of December 31, 2021
					Outward	Inward
CYSPC SYCPCL SYTCL YYDCCL HGYDC HYTCL WYCPCL WYXC HZYCCL HXMC WAMTC TZOCCL SLCL SLCCL YDES	Slag powder It manufactures and sells ready-mixed concrete and cement - related products Transportation Cement, slag powder and ready-mixed concrete (including cement - related products) Cement, clinker, slag powder and ready-mixed concrete (including cement - related products) Transportation It manufactures and sells ready-mixed concrete and cement - related products Cement, clinker, slag powder and ready-mixed concrete (including cement - related products) It manufactures and sells ready-mixed concrete and cement - related products Production and sales of limestone Marine transportation Cement - related products Cement, clinker, slag powder and ready-mixed concrete (including cement - related products) Cement - related products Wholesale of chemical products and machinery equipment, design and development of computer software and network technology	N/A US$3,300 (equivalent to NT$91,179 thousand) US$3,500 (equivalent to NT$96,705 thousand) US$35,530 (equivalent to NT$981,694 thousand) US$86,170 (equivalent to NT$2,380,877 thousand) RMB13,000 (equivalent to NT$56,337 thousand) RMB60,000 (equivalent to NT$260,018 thousand) RMB90,000 (equivalent to NT$390,028 thousand) RMB30,000 (equivalent to NT$130,009 thousand) RMB10,000 (equivalent to NT$43,336 thousand) RMB35,500 (equivalent to NT$153,844 thousand) US$16,000 (equivalent to NT$442,080 thousand) RMB600,000 (equivalent to NT$2,600,184 thousand) RMB20,000 (equivalent to NT$86,673 thousand) RMB1,763,425 (equivalent to NT$7,642,049 thousand)	N/A (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2) (2)	US$980 (equivalent to NT$27,077 thousand) US$2,970 (equivalent to NT$82,061 thousand) US$3,150 (equivalent to NT$87,035 thousand) US$15,849 (equivalent to NT$437,908 thousand) US$15,350 (equivalent to NT$424,121 thousand) - - - - - - - - - -	$ - - - - - - - - - - - - - - -	$ - - - - - - - - - - - - - - -	US$980 (equivalent to NT$27,077 thousand) US$2,970 (equivalent to NT$82,061 thousand) US$3,150 (equivalent to NT$87,035 thousand) US$15,849 (equivalent to NT$437,908 thousand) US$15,350 (equivalent to NT$424,121 thousand) - - - - - - - - - -	N/A RMB14,830 (equivalent to NT$64,425 thousand) RMB136 (equivalent to NT$591 thousand) RMB48,356 (equivalent to NT$210,071 thousand) RMB166,291 (equivalent to NT$722,411 thousand) RMB(565) (equivalent to NT$(2,455) thousand) RMB(33,727) (equivalent to NT$(146,519) thousand) RMB20,150 (equivalent to NT$87,537 thousand) RMB1,542 (equivalent to NT$6,699 thousand) RMB15,171 (equivalent to NT$65,907 thousand) RMB8,518 (equivalent to NT$37,004 thousand) RMB14,980 (equivalent to NT$65,077 thousand) RMB197,517 (equivalent to NT$858,065 thousand) RMB(1,695) (equivalent to NT$((7,364) thousand) RMB(41,754) (equivalent to NT$(181,390) thousand)	N/A 72.00 72.00 72.00 72.00 72.00 72.00 64.79 28.80 28.80 34.20 72.00 72.00 72.00 28.80	N/A RMB10,678 (equivalent to NT$46,388 thousand) RMB98 (equivalent to NT$426 thousand) RMB34,817 (equivalent to NT$151,254 thousand) RMB119,730 (equivalent to NT$520,138 thousand) RMB(407) (equivalent to NT$(1,768) thousand) RMB(24,283) (equivalent to NT$(105,492) thousand) RMB12,598 (equivalent to NT$54,729 thousand) RMB444 (equivalent to NT$1,929 thousand) RMB4,207 (equivalent to NT$18,276 thousand) RMB3,121 (equivalent to NT$13,558 thousand) RMB10,246 (equivalent to NT$44,511 thousand) RMB140,212 (equivalent to NT$609,117 thousand) RMB(1,220) (equivalent to NT$(5,300) thousand) RMB(50,430) (equivalent to NT$(219,081) thousand)	N/A RMB12,851 (equivalent to NT$55,692 thousand) RMB33,293 (equivalent to NT$144,280 thousand) RMB313,348 (equivalent to NT$1,357,937 thousand) RMB1,048,913 (equivalent to NT$4,545,611 thousand) RMB13,215 (equivalent to NT$57,269 thousand) RMB45,766 (equivalent to NT$198,333 thousand) RMB249,500 (equivalent to NT$1,081,243 thousand) RMB15,348 (equivalent to NT$66,513 thousand) RMB8,561 (equivalent to NT$37,100 thousand) RMB35,001 (equivalent to NT$151,682 thousand) RMB77,505 (equivalent to NT$335,879 thousand) RMB1,709,257 (equivalent to NT$7,407,305 thousand) RMB(17,441) (equivalent to NT$(75,583) thousand) RMB480,660 (equivalent to NT$2,083,007 thousand)	- - US$992 (equivalent to NT$27,409 thousand) US$1,016 (equivalent to NT$28,072 thousand) RMB31,173 (equivalent to NT$135,093 thousand) US$1,837 (equivalent to NT$50,756 thousand) RMB132,908 (equivalent to NT$575,975 thousand) - - - - - - - - - -
												(Continued)

113 -

Investee Company	Main Businesses and Products	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 2)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2021	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2021	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 1)	Carrying Amount as of December 31, 2021	Accumulated Repatriation of Investment Income as of December 31, 2021
						Outward	Inward
RYNM JRYNM	Building materials, products and construction waste Mineral resource mining, port management, waterway general transportation and construction	goods	RMB2,000 (equivalent to NT$8,667 thousand) RMB10,000 (equivalent to NT$43,336 thousand)	(2) (2)	- -	$ - -	$ - -	- -	RMB104,166 (equivalent to NT$452,524 thousand) RMB(686) (equivalent to NT$(2,980) thousand)	68.40 30.78	RMB71,249 (equivalent to NT$309,524 thousand) RMB(211) (equivalent to NT$(917) thousand)	RMB75,878 (equivalent to NT$328,828 thousand) RMB2,867 (equivalent to NT$12,425 thousand)	- -

Accumulated Outward Remittance for Investment in Mainland China as of December 31, 2021		Investment Amounts Authorized by Investment Commission, MOEA			Upper Limit on the Amount of Investment Stipulated by Investment Commission, MOEA
US$648,051 (Note 3) (Equivalent to NT$17,905,649 thousand)		US$2,284,279 (Equivalent to NT$63,114,629 thousand)			(Note 4)

Note 1: The accrual is based on the financial statements audited by independent auditors.

Note 2: The investor companies were incorporated in Mainland China by a company (2) (ACCHC) which was incorporated in the area other than Taiwan and Mainland China in order to invest in Mainland China.

Note 3: As of December 31, 2021, accumulated investments in China Shanshui Cement Group Ltd, which is listed at HKEx, and China Shanshui Investment Company Limited were US$150,620 thousand and US$66,201 thousand, respectively, which were included in Accumulated Outward Remittance for Investment in Mainland China.

Note 4: The Corporation obtained certificate No. 10920439220 from Industrial Development Bureau, Ministry of Economic Affairs, according to the “Regulations Governing the Approval of Investment or Technical Cooperation in Mainland China”, the accumulation of fund is not limited.

Note 5: The foreign currency amounts of original investment amount and carrying amount are expressed in New Taiwan dollars at exchange rate as of December 31, 2021 the foreign currency amount of net income is expressed in New Taiwan dollars at average exchange rate for the year ended December 31, 2021.

(Concluded)

114 -

TABLE 9

ASIA CEMENT CORPORATION AND SUBSIDIARIES

BUSINESS RELATIONSHIP AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 2021 (In Thousands of New Taiwan Dollars)

Number	Company Name	Counterparty	Relationship (Note)	Transaction Details	Transaction Details		% to Total Revenue or Assets
				Financial Statement Account	Amount	Transaction Terms
0	The Corporation	YTRMC ACSPL YSRMC	1 1 1 1	Sales Accounts receivable Sales Sales	$ 1,813,917 449,255 611,164 236,760	Based on regular terms Based on regular terms Based on regular terms Based on regular terms	2 - 1 -
1	NHC	The Corporation	2	Sales	227,810	Based on regular terms	-
2	YLT	The Corporation	2	Sales	145,697	Based on regular terms	-
3	ACCHC	PIHPL	1	Dividends receivable	1,803,785	Based on regular terms	1
4	PIHPL	ACIHPL OIHPL	1 1	Dividends receivable Dividends receivable	952,720 851,065	Based on regular terms Based on regular terms	- -
5	ACIHPL	JYDC	1	Dividends receivable	2,005,726	Based on regular terms	1
6	OIHPL	SIYDCCL ACCHC YYDCCL	1 2 1	Dividends receivable Other receivables Dividends receivable	1,627,543 194,497 164,172	Based on regular terms Based on regular terms Based on regular terms	1 - -
7	SIYDCCL	ACCHC SLCL SYCPCL	2 1 3	Other receivables Sales Other receivables	2,623,907 1,084,288 260,320	Based on regular terms Based on regular terms Based on regular terms	1 1 -
8	JYDC	YYDCCL TZOCCL ACCHC WYDC NYDC RYNM HYDCCL SHYLCP	3 3 3 3 2 3 3 1 1 3 3	Sales Accounts receivable Sales Accounts receivable Other receivables Sales Accounts receivable Sales Sales Sales Other receivables	2,223,890 255,677 1,385,707 171,164 1,309,426 728,150 107,878 306,634 215,513 120,658 114,975	Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms Based on regular terms	2 - 2 - - 1 - - - - -
9	HYDCCL	ACCHC	2	Other receivables	1,885,483	Based on regular terms	1
							(Continued)

115 -

Number	Company Name	Counterparty	Relationship (Note)	Transaction Details	Transaction Details		% to Total Revenue or Assets
				Financial Statement Account	Amount	Transaction Terms
10	HGYDC	ACCHC HYDCCL JYDC	2 3 3 3	Other receivables Sales Sales Accountsreceivable	$ 1,096,130 594,164 276,708 116,606	Based on regular terms Based on regular terms Based on regular terms Based on regularterms	- 1 - -
11	NYDC	JYDC	2 2	Sales Accounts receivable	1,005,273 143,090	Based on regular terms Based on regular terms	1 -
12	WYDC	ACCHC	2	Other receivables	526,181	Based on regular terms	-
13	SYTCL	SLCL	3	Sales	190,978	Based on regular terms	-
14	JYLTC	JYDC	2	Sales	240,155	Based on regular terms	-
15	SLCL	SLCCL	1	Other receivables	151,854	Based on regular terms	-
16	NYLC	JYDC	2	Sales	121,279	Based on regular terms	-

Note: 1. Parent to subsidiary.
Subsidiary to parent.
Between subsidiaries.

(Concluded)

116 -

TABLE 10

ASIA CEMENT CORPORATION

INFORMATION OF MAJOR SHAREHOLDERS FOR THE YEAR ENDED DECEMBER 31, 2021

Name of Major Shareholder	Shares	Shares
	Number of Shares	Percentage of Ownership (%)
FENC Far Eastern Medical Foundation	750,511,324 181,566,797	21.16 5.12

Note: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Corporation as of the last business day for the current quarter. The share capital in the parent company only financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

117 -

For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	2021 2020 $ 45,527,236 $ 38,768,801 $ 9,684,584 $ 8,062,699 (515,037) (26,143) $ 9,169,547 $ 8,036,556 $ 1,859,900 $ 2,066,555 December 31
2021 2020 $ 2,156,201 $ 2,088,840 51,659,693 47,537,505 14,284,980 14,349,470 13,672,196 12,101,381 25,858,718 23,175,494 41.41% 41.41% 10,708,095 9,596,972 $ (87,524) $ (87,523) (129,766) (129,766) $ 10,490,805 $ 9,379,683 For the Year Ended December 31
	2021 $ 1,660,430 $ 4,892,584 (1,194,945) $ 3,697,639 $ 419,899	2020 $ 1,039,426 $ 878,425 (2,941,713) $ (2,063,288) $ 664,840

Net loss on financial assets and liabilities designated as at FVTPL Gain on changes in fair value of investment properties (Note 17) Impairment loss recognized on investments accounted for using the equity method Net foreign exchange losses Impairment loss recognized on right-of-use assets Bank charges Impairment loss recognized on property, plant and equipment Preparatory costs (Note 20) Loss on disposal of subsidiary (Note 13) Penalties (Note 38) Miscellaneous expenses Finance costs Interest on bank loans Amortization of discount on bonds payable Interest on lease liabilities Other interest expense Less: Amounts included in the cost of qualifying assets (capitalized interest)	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
	2021 2020 $ (256,468) $ (240,993) 244,301 237,856 (231,725) - (161,955) (162,371) (118,569) - (71,561) (133,728) (71,411) (13,212) (58,063) (23,899) - (58,871) (983,519) - (949,925) (691,715) $ (2,658,895) $ (1,086,933) For the Year Ended December 31
		2021 $ 878,998 54,000 35,690 - (74,362) $ 894,326	2020 $ 1,131,684 89,497 47,564 2,339 (107,439) $ 1,163,645

AI assistant

ACC — Audit Report / Information 2021

51736_rns_2021-11-15_2ab916d2-61e4-41f4-9d32-c5b08414a9e4.pdf

Asia Cement Corporation and Subsidiaries

DECLARATION OF CONSOLIDATION OF FINANCIAL STATEMENTS OF AFFILIATES

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for Opinion

Key Audit Matters

Other Matter

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Notice to Readers

ASIA CEMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

ASIA CEMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

ASIA CEMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

ASIA CEMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

ASIA CEMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

ASIA CEMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

ASIA CEMENT CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020 (In Thousands of New Taiwan Dollars)

ASIA CEMENT CORPORATION AND SUBSIDIARIES

1. ORGANIZATION AND OPERATIONS

2. APPROVAL OF FINANCIAL STATEMENTS

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

e. Foreign currencies

f. Inventories

g. Investments in associates and joint ventures

j. Goodwill

k. Intangible assets

m. Financial instruments

Financial assets

Financial liabilities

1) Subsequent measurement

Convertible bonds

Derivative financial instruments

n. Provisions

o. Revenue recognition

1) Revenue from the sale of goods

2) Revenue from the rendering of services

3) Construction contract revenue

p. Leases

1) The Group as lessor

2) The Group as lessee

q. Borrowing costs

2) Deferred tax

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Key Sources of Estimation Uncertainty

6. CASH AND CASH EQUIVALENTS

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS - CURRENT

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

9. FINANCIAL ASSETS AT AMORTIZED COST

10. TRADE RECEIVABLES

Trade Receivables - Sales

11. FINANCE LEASE RECEIVABLES

12. INVENTORIES

13. SUBSIDIARIES

Remarks:

14. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

CSCGL and its subsidiaries:

15. PROPERTY, PLANT AND EQUIPMENT

Assets Used By the Group

16. LEASE ARRANGEMENTS

c. Material lease-in activities and terms

d. Other lease information

17. INVESTMENT PROPERTIES

18. INTANGIBLE ASSETS - GOODWILL

19. INTANGIBLE ASSETS - OTHERS

20. OTHER NON-CURRENT ASSETS

21. SHORT-TERM BORROWINGS

22. SHORT-TERM BILLS PAYABLE

23. LONG-TERM LIABILITIES

24. DEFERRED REVENUE

ACC Audit Report / Information 2021