AMBH — Annual Report 2021

Nov 10, 2021

THE AMBASSADOR HOTEL CO., LTD.

PARENT COMPANY ONLY FINANCIAL STATEMENTS

WITH REPORT OF INDEPENDENT AUDITORS

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

Address: No. 63, Sec. 2, Zhongshan N. Rd., Zhongshan Dist., Taipei City 104204, Taiwan (R.O.C.) Telephone: 886-2-2100-2100

The reader is advised that these parent company only financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

1

Independent Auditors’ Report Translated from Chinese

To The Ambassador Hotel Co., Ltd.

Opinion

We have audited the accompanying parent company only balance sheets of The Ambassador Hotel Co., Ltd. (“the Company”) as of December 31, 2021 and 2020, and the related parent company only statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2021 and 2020, and notes to the parent company only financial statements, including the summary of significant accounting policies (together “the parent company only financial statements”).

In our opinion, based on our audits and the reports of other auditors (please refer to the Other Matter – Making Reference to the Audits of Component Auditors section of our report), the parent company only financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and its financial performance and cash flows for the years ended December 31, 2021 and 2020, in conformity with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China (the “Norm”), and we have fulfilled our other ethical responsibilities in accordance with the Norm. Based on our audits and the reports of other auditors, 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 2021 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

2

Revenue Recognition

Net sales recognized by the Company amounted to NT$ 1,502,803 thousand for the year ended December 31, 2021. As revenue included room revenue and food and beverage sales with large number of transactions, the appropriateness of timing of revenue recognition is material for the parent company only financial statements. Therefore, we considered this is a key audit matter. Our audit procedures included (but not limited to), assessing the appropriateness of the accounting policy of revenue recognition, performing walkthrough of room revenue and food and beverage sales to understand the internal control of sales process and the effectiveness of the design of internal controls, testing operating effectiveness of internal controls related to the timing of revenue recognition, selecting samples to perform cut-off testing and inspecting billing statements and invoices to verify proper cut-off of revenue. In addition, we evaluated the adequacy of disclosures of operating revenues. Please refer to Notes 4 and 6 to the parent company only financial statements.

Net defined benefit liabilities

The Company is labor-intensive industry. Employees are high in seniority and most of them chose defined benefits plan. As of December 31, 2021, the Company’s net defined benefit liabilitiesnoncurrent amounted to NT$42,724 thousand, representing 0.82% of total liabilities. The defined benefit costs were recognized as profit or loss amounted to NT$7,491 thousand, representing (8.78)% of the income before tax for the year ended December 31, 2021. In addition, the valuation of the defined benefit plan involved making various assumptions. Change in assumptions may be significant for the parent company only financial statements. Therefore, we considered this is a key audit matter. Since the aforementioned amounts were recognized by the Company according to the actuarial report issued by an external actuary, we communicated with the external expert and assessed objectivity. We tested the accuracy and completeness of the underlying data used in the actuarial report, assessed the reasonableness of assumptions or principles and performed sensitivity analysis (including discount rate, turnover rate and expected rate of salary increases). In addition, we evaluated the adequacy of disclosures of net defined benefit liabilities. Please refer to Notes 4, 5 and 6 to the parent company only financial statements.

Other Matter – Making Reference to the Audits of Component Auditors

We did not audit the financial statements of certain associates and joint ventures accounted for under the equity method. Those financial statements were audited by other auditors, whose reports thereon have been furnished to us, and our opinions expressed herein are based solely on the audit reports of the other auditors. These associates and joint ventures under equity method amounted to NT$265,490 thousand and NT$314,665 thousand, representing 1.55% and 2.37% of total assets as of December 31, 2021 and 2020, respectively. The related shares of profits (losses) from the associates and joint ventures under the equity method amounted to NT$(25,992) thousand and NT$(43,408) thousand, representing 30.47% and (1,370.05)% of the income before tax for the years ended December 31 2021 and 2020, respectively, and the related shares of other comprehensive income from the associates and joint ventures under the equity method amounted to NT$8,085 thousand and NT$9,400 thousand, representing 0.95% and 1.92% of the other comprehensive income for the years ended December 31, 2021 and 2020, respectively.

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Responsibilities of Management and Those Charged with Governance for the Parent Company Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including audit committee, are responsible for overseeing the financial reporting process of the Company.

Auditor’s Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s 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 parent company only financial statements.

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

1. Identify and assess the risks of material misstatement of the parent company only 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.

4

1. 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 internal control of the Company.

2. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

3. 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 ability to continue as a going concern of the Company. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the parent company only 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 auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.

4. Evaluate the overall presentation, structure and content of the parent company only financial statements, including the accompanying notes, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

5. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only 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 identified 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.

5

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of 2021 parent company only financial statements and are therefore the key audit matters. We describe these matters in our auditor’s 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.

/s/Huang, Chien-Che

/s/Fuh, Wen-Fun

Ernst & Young, Taiwan March 8 , 2022

Notice to Readers

The accompanying parent company only financial statements are intended only to present the financial position, results of operations 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 parent company only financial statements are those generally accepted and applied in the Republic of China.

Accordingly, the accompanying parent company only financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, Ernst & Young cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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ENGLISH TRANSLATION OF PARENT COMPANY ONLY FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE

THE AMBASSADOR HOTEL CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Assets	Notes		December 31,2021	December 31,2021	December 31,2021		December 31,2020	December 31,2020	December 31,2020
Contents			Amount		%		Amount		%
Current assets Cash and cash equivalents Financial assets at fair value through other comprehensive income, current Notes receivable, net Accounts receivable, net Other receivables Current tax assets Inventories Prepayments Other current assets Total current assets Non-current assets Financial assets at fair value through profit or loss, non-current Financial assets at fair value through other comprehensive income, non-current Financial assets at amortised cost, non-current Investments accounted for using equity method Property, plant and equipment Right-of-use assets Investment property, net Deferred tax assets Other non-current assets Total non-current assets Total assets	4,6 4,6 4,6 4,6,7 7 4,6 7 4,5,6 4,6 4,6,8 4,6 4,6,8,9 4,5,6,8 4,5,6 4,5,6 7		$298,412 5,713,087 7 35,923 1,464 2,368 78,796 69,061 5,183 6,204,301 718,570 211,946 15,930 3,438,788 5,366,023 922,856 73,433 127,933 46,518 10,921,997 $17,126,298		2 33 - - - - 1 - - 36 4 1 - 20 31 6 1 1 - 64 100		$212,613 2,945,080 514 46,671 1,185 - 78,385 76,181 15,166 3,375,795 676,518 169,165 15,930 3,302,340 5,411,508 63,626 72,617 127,881 50,930 9,890,515 $13,266,310		1 22 - - - - 1 1 - 25 5 1 - 25 41 1 1 1 - 75 100

The accompanying notes are an integral part of parent company only financial statements.

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ENGLISH TRANSLATION OF PARENT COMPANY ONLY FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE

THE AMBASSADOR HOTEL CO., LTD.

PARENT COMPANY ONLY BALANCE SHEETS (CONTINUED) December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Liabilities and Equity	Notes		December 31,2021	December 31,2021	December 31,2021		December 31,2020	December 31,2020	December 31,2020
Contents			Amount		%		Amount		%
Current liabilities Short-term loans Short-term bills payables Contract liabilities, current Notes payable Accounts payable Other payables Current tax liabilities Lease liabilities, current Current portion of long-term liabilities Other current liabilities Total current liabilities Non-current liabilities Long-term loans Deferred tax liabilities Lease liabilities, non-current Net defined benefit liabilities, non-current Other non-current liabilities - others Total non-current liabilities Total liabilities Equity attributable to shareholders of the parent Capital stock Common stock Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other components of equity Total equity Total liabilities and equity	6,8 6 4,6 7 6 4,6,7 4,5,6 6,8 4,6 4,6,8 4,6 4,5,6 4,5,6 7 6 6 6		$2,870,000 400,000 200,471 533 97,368 403,235 - 48,499 13,333 12,001 4,045,440 100,000 97,964 891,584 42,724 10,364 1,142,636 5,188,076 3,669,234 2,943,143 769,536 195,815 1,844,803 2,810,154 2,515,691 11,938,222 $17,126,298		17 2 1 - 1 2 - - - - 23 1 1 5 - - 7 30 22 17 4 1 11 16 15 70 100		$920,000 - 197,838 533 117,698 485,603 8,549 12,879 100,000 12,910 1,856,010 20,000 89,553 50,820 61,234 14,321 235,928 2,091,938 3,669,234 2,932,131 766,323 195,815 1,841,644 2,803,782 1,769,225 11,174,372 $13,266,310		7 - 1 - 1 4 - - 1 - 14 - 1 - 1 - 2 16 28 22 6 1 14 21 13 84 100

The accompanying notes are an integral part of parent company only financial statements.

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ENGLISH TRANSLATION OF PARENT COMPANY ONLY FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE

THE AMBASSADOR HOTEL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings per Share)

Contents	Notes	For the years ended December 31,	For the years ended December 31,	For the years ended December 31,	For the years ended December 31,
		2021		2020
		Amount	%	Amount	%
Operating revenues Operating costs Gross profit Operating expenses Sales and marketing expenses General and administrative expenses Subtotal Operating income (loss) Non-operating income and expenses Interest income Other income Other gains and losses Finance costs Share of profit or loss of associates and joint ventures accounted for using equity method Subtotal (Loss) income before income tax Income tax expense Net (loss) income Other comprehensive income (loss) Items that will not be reclassified subsequently to profit or loss Remeasurements of defined benefits plans Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income Income tax related to items that will not be reclassified subsequently Items that may be reclassified subsequently to profit or loss Share of other comprehensive income (loss) of associates and joint ventures which may be reclassified subsequently to profit or loss Total other comprehensive income (loss), net of income tax Total comprehensive income (loss) Earnings per share Basic earnings per share (NT$) Net Income Diluted earnings per share (NT$) Net Income	4,6,7 4,6,7 4,6,7 6 4,5,6 4,6 4,6	$1,502,803 (1,236,581) 266,222 (261,547) (378,821) (640,368) (374,146) 607 246,049 41,929 (19,970) 20,237 288,852 (85,294) (3,324) (88,618) 2,079 746,900 (415) 102,559 851,123 $762,505 ($0.24) ($0.24)	100 (82) 18 (17) (25) (42) (24) - 16 3 (1) 1 19 - (5) (5) - 50 - 7 57 52	$1,991,144 (1,531,091) 460,053 (322,357) (417,771) (740,128) (280,075) 870 192,271 86,707 (4,798) 8,193 283,243 3,168 (560) 2,608 21,209 269,117 (4,242) 203,598 489,682 $492,290 $0.01 $0.01	100 (77) 23 (16) (21) (37) (14) - 10 4 - - 14 - - - 1 14 - 10 25 25

The accompanying notes are an integral part of parent company only financial statements.

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ENGLISH TRANSLATION OF PARENT COMPANY ONLY FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE

THE AMBASSADOR HOTEL CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Contents			EquityAttributable to Shareholders of the Parent	EquityAttributable to Shareholders of the Parent	EquityAttributable to Shareholders of the Parent
	Common Stock	Capital Surplus		Retained Earnings		Other Components of	Total
			Legal Reserve	Special Reserve	Unappropriated Earnings	Unrealized Gains or Losses on Financial Assets Measured at Fair Value through Other Comprehensive Income
Balance as of January 1, 2020 Appropriation and distribution of 2019 retained earnings Legal reserve Other changes in capital surplus: Share of changes in net assets of associates and joint ventures accounted for using equity method Net income for the year ended December 31, 2020 Other comprehensive income (loss) for the year ended December 31, 2020 Total comprehensive income (loss) Balance as of December 31, 2020 Balance as of January 1, 2021 Appropriation and distribution of 2020 retained earnings Legal reserve Other changes in capital surplus: Share of changes in net assets of associates and joint ventures accounted for using equity method Net income (loss) for the year ended December 31, 2021 Other comprehensive income (loss) for the year ended December 31, 2021 Total comprehensive income (loss) Disposal of equity instruments at fair value through other comprehensive income Balance as of December 31, 2021	$3,669,234 - - - -	$2,932,076 - 55 - -	$727,960 38,363 - - -	$195,815 - - - -	$1,847,874 (38,363) 12,558 2,608 16,967	$1,296,510 - - - 472,715	$10,669,469 - 12,613 2,608 489,682
	-	-	-	-	19,575	472,715	492,290
	$3,669,234	$2,932,131	$766,323	$195,815	$1,841,644	$1,769,225	$11,174,372
	$3,669,234 - - - -	$2,932,131 - 11,012 - -	$766,323 3,213 - - -	$195,815 - - - -	$1,841,644 (3,213) (9,667) (88,618) 1,664	$1,769,225 - - - 849,459	$11,174,372 - 1,345 (88,618) 851,123
	-	-	-	-	(86,954)	849,459	762,505
	- $3,669,234	- $2,943,143	- $769,536	- $195,815	102,993 $1,844,803	(102,993) $2,515,691	- $11,938,222

The accompanying notes are an integral part of parent company only financial statements.

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ENGLISH TRANSLATION OF PARENT COMPANY ONLY FINANCIAL STATEMENTS ORIGINALLY ISSUED IN CHINESE

THE AMBASSADOR HOTEL CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Contents	For theyear ended December 31,	For theyear ended December 31,
	2021	2020
	Amount	Amount
Cash flows from operating activities: Net (loss) income before income tax Adjustments: Adjustments to reconcile profit (loss): Depreciation expense Expected credit impairment losses Net gain from financial assets or liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of (profit) of associates and joint ventures accounted for using equity method Loss (gain) on disposal of property, plant and equipment Expenses transferred from property, plant and equipment Loss on disposal of investments Changes in operating assets and liabilities: Decrease (increase) in notes receivable Decrease (increase) in accounts receivable Decrease (increase) in other receivables Decrease (increase) in inventories Decrease (increase) in prepayments Decrease (increase) in other current assets Increase (decrease) in contract liabilities Increase (decrease) in notes payables Increase (decrease) in accounts payables Increase (decrease) in other payables Increase (decrease) in other current liabilities Increase (decrease) in net defined benefit liabilities Cash generated from operations Interest received Income taxes paid Net cash (used in) provided by operating activities Cash flows from investing activities: Refund received of capital reduction that financial assets at fair value through other comprehensive income Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Acquisition of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease (increase) in other non-current assets Dividends received Net cash used in investing activities Cash flows from financing activities: Increase (decrease) in short-term loans Increase (decrease) in short-term bills payables Repayments of long-term loans (Current portion included) Cash payments for the principal portion of the lease liability Increase (decrease) in other non-current liabilities - others Interest paid (including capitalisation of interest) Net cash provided by (used in) financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at the beginning of year Cash and cash equivalents at the end of year	$(85,294) 286,263 (35) (42,052) 19,970 (607) (175,305) (20,237) (478) 911 343 651 10,639 2,086 (411) 6,845 9,984 2,633 (1) (20,330) (75,608) (909) (18,510) (99,452) 609 (5,466) (104,309) - (2,332,980) 291,276 (90,000) (213,079) 528 4,413 222,164 (2,117,678) 1,950,000 400,000 (6,667) (15,162) (3,958) (16,427) 2,307,786 85,799 212,613 $298,412	$3,168 263,979 (168) (87,402) 4,798 (870) (76,350) (8,193) 619 (388) - 14,293 41,800 (96) 25,030 (111) (11,226) (2,593) - (36,060) (52,069) 886 (10,392) 68,655 879 (127) 69,407 3,341 (654,115) 2 (85,000) (236,326) 98 (17,276) 142,629 (846,647) 700,000 - (11,000) (17,095) (1,530) (4,383) 665,992 (111,248) 323,861 $212,613

The accompanying notes are an integral part of parent company only financial statements.

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS

For the years ended December 31, 2021 and 2020

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

1. History and organization

The Ambassador Hotel Co., Ltd. (“the Company”) was incorporated in November 1962 under the Company Act of the Republic of China (“R.O.C.”) and commenced operations in December 1964. The Ambassador Hotel Kaohsiung and The Ambassador Hotel Hsinchu was established and commenced operations in December 1981 and May 2001, respectively. The main activities of the Company are international tourist hotels and attached restaurants, café, lounge bars and clubs. The Company’s common shares were publicly listed on the Taiwan Stock Exchange (TWSE) in November 1982. The Company’s registered office and the main business location is at No. 63, Section 2, Zhongshan North Road, Taipei, Republic of China (R.O.C.).

2. Date and procedures of authorization of financial statements for issue

The parent company only financial statements of the Company for the years ended December 31, 2021 and 2020 were authorized for issue by the Board of Directors on March 8, 2022.

3. Newly issued or revised standards and interpretations

• (1) Changes in accounting policies resulting from applying for the first time certain standards and amendments

The Company applied for the first time International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are recognized by Financial Supervisory Commission (“FSC”) and become effective for annual periods beginning on or after January 1, 2021. The adoption of these new standards and amendments had no material impact on the Company.

• (2) Standards or interpretations issued, revised or amended, by International Accounting Standards Board (“IASB”) which are endorsed by FSC, but not yet adopted by the Company as at the end of the reporting period are listed below.

Item	New, Revised or Amended Standards and Interpretations	Effective Date issued byIASB
a	Narrow-scope amendments of IFRS, including Amendments to IFRS 3, Amendments to IAS 16, Amendments to IAS 37 and the Annual Improvements	1 January 2022

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

• (a) Narrow-scope amendments of IFRS, including Amendments to IFRS 3, Amendments to IAS 16, Amendments to IAS 37 and the Annual Improvements

• A. Updating a Reference to the Conceptual Framework (Amendments to IFRS 3)

The amendments updated IFRS 3 by replacing a reference to an old version of the Conceptual Framework for Financial Reporting with a reference to the latest version, which was issued in March 2018. The amendments also added an exception to the recognition principle of IFRS 3 to avoid the issue of potential “day 2” gains or losses arising for liabilities and contingent liabilities. Besides, the amendments clarify existing guidance in IFRS 3 for contingent assets that would not be affected by replacing the reference to the Conceptual Framework.

• B. Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16)

The amendments prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognise such sales proceeds and related cost in profit or loss.

• C. Onerous Contracts - Cost of Fulfilling a Contract (Amendments to IAS 37)

The amendments clarify what costs a company should include as the cost of fulfilling a contract when assessing whether a contract is onerous.

• D. Annual Improvements to IFRS Standards 2018 - 2020

Amendment to IFRS 1

The amendment simplifies the application of IFRS 1 by a subsidiary that becomes a first-time adopter after its parent in relation to the measurement of cumulative translation differences.

Amendment to IFRS 9 Financial Instruments

The amendment clarifies the fees a company includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability.

Amendment to Illustrative Examples Accompanying IFRS 16 Leases

The amendment to Illustrative Example 13 accompanying IFRS 16 modifies the treatment of lease incentives relating to lessee’s leasehold improvements.

13

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Amendment to IAS 41

The amendment removes a requirement to exclude cash flows from taxation when measuring fair value thereby aligning the fair value measurement requirements in IAS 41 with those in other IFRS Standards.

The abovementioned standards and interpretations were issued by IASB and endorsed by FSC so that they are applicable for annual periods beginning on or after 1 January 2022. The new or amended standards and interpretations have no material impact on the Company.

• (3) Standards or interpretations issued, revised or amended, by IASB which are not endorsed by FSC, and not yet adopted by the Company as at the end of the reporting period are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued byIASB
a	IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures	To be determined by IASB
b	IFRS 17 “Insurance Contracts”	1 January2023
c	Classification of Liabilities as Current or Non-current – Amendments to IAS 1	1 January 2023
d	Disclosure Initiative - Accounting Policies – Amendments to IAS 1	1 January 2023
e	Definition of AccountingEstimates – Amendments to IAS 8	1 January2023
f	Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12	1 January 2023

• (a) IFRS 10“Consolidated Financial Statements” and IAS 28“Investments in Associates and Joint Ventures” — Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures

The amendments address the inconsistency between the requirements in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures , in dealing with the loss of control of a subsidiary that is contributed to an associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of non-monetary assets to an associate or a joint venture to the extent of the interest attributable to the other equity holders in the associate or joint ventures. IFRS 10 requires full profit or loss recognition on the loss of control of the subsidiary. IAS 28 was amended so that the gain or loss resulting from the sale or contribution of assets that constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized in full.

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

IFRS 10 was also amended so that the gains or loss resulting from the sale or contribution of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized only to the extent of the unrelated investors’ interests in the associate or joint venture.

• (b) IFRS 17 “Insurance Contracts”

IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects (including recognition, measurement, presentation and disclosure requirements). The core of IFRS 17 is the General (building block) Model, under this model, on initial recognition, an entity shall measure a group of insurance contracts at the total of the fulfilment cash flows and the contractual service margin. The carrying amount of a group of insurance contracts at the end of each reporting period shall be the sum of the liability for remaining coverage and the liability for incurred claims.

Other than the General Model, the standard also provides a specific adaptation for contracts with direct participation features (the Variable Fee Approach) and a simplified approach (Premium Allocation Approach) mainly for short-duration contracts.

IFRS 17 was issued in May 2017 and it was amended in 2020 and 2021. The amendments include deferral of the date of initial application of IFRS 17 by two years to annual beginning on or after 1 January 2023 (from the original effective date of 1 January 2021); provide additional transition reliefs; simplify some requirements to reduce the costs of applying IFRS 17 and revise some requirements to make the results easier to explain. IFRS 17 replaces an interim Standard – IFRS 4 Insurance Contracts – from annual reporting periods beginning on or after 1 January 2023.

• (c) Classification of Liabilities as Current or Non-current – Amendments to IAS 1

These are the amendments to paragraphs 69-76 of IAS 1 Presentation of Financial statements and the amended paragraphs related to the classification of liabilities as current or non-current.

• (d) Disclosure Initiative - Accounting Policies – Amendments to IAS 1

The amendments improve accounting policy disclosures that to provide more useful information to investors and other primary users of the financial statements.

15

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

• (e) Definition of Accounting Estimates – Amendments to IAS 8

The amendments introduce the definition of accounting estimates and included other amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to help companies distinguish changes in accounting estimates from changes in accounting policies.

• (f) Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12

The amendments narrow the scope of the recognition exemption in paragraphs 15 and 24 of IAS 12 so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences.

The abovementioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the Company’s financial statements were authorized for issue, the local effective dates are to be determined by FSC. The new or amended standards and interpretations have no material impact on the Company.

4. Summary of significant accounting policies

• (1) Statement of compliance

The parent company only financial statements of the Company for the years ended December 31, 2021 and 2020 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (“the Regulations”).

• (2) Basis of preparation

The Company prepared parent company only financial statements in accordance with Article 21 of the Regulations, which provided that the profit or loss and other comprehensive income for the period presented in the parent company only financial statements shall be the same as the profit or loss and other comprehensive income attributable to stockholders of the parent presented in the consolidated financial statements for the period, and the total equity presented in the parent company only financial statements shall be the same as theequity attributable to the parent company presented in the consolidated financial statements. Therefore, the Company accounted for its investments in subsidiaries using equity method and, accordingly, made necessary adjustments.

16

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

The parent company only financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The parent company only financial statements are expressed in thousands of New Taiwan Dollars (“NT$”) unless otherwise stated.

• (3) Foreign currency transactions

The Company’s parent company only financial statements are presented in NT$, which is also the Company’s functional currency.

Transactions in foreign currencies are initially recorded by the Company at functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency closing rate of exchange ruling at the reporting date. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as at the dates of the initial transactions.

All exchange differences arising on the settlement of monetary items or on translating monetary items are taken to profit or loss in the period in which they arise except for the following:

• (a) Exchange differences arising from foreign currency borrowings for an acquisition of a qualifying asset to the extent that they are regarded as an adjustment to interest costs are included in the borrowing costs that are eligible for capitalization.

• (b) Foreign currency items within the scope of IFRS 9 Financial Instruments are accounted for based on the accounting policy for financial instruments.

• (c) Exchange differences arising on a monetary item that forms part of a reporting entity’s net investment in a foreign operation is recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment.

When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. When a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

17

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

(4) Current and non-current distinction

An asset is classified as current when:

• (a) The Company expects to realize the asset, or intends to sell or consume it, in its normal operating cycle

• (b) The Company holds the asset primarily for the purpose of trading

• (c) The Company expects to realize the asset within twelve months after the reporting period

• (d) The asset is cash or cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when:

• (a) The Company expects to settle the liability in its normal operating cycle

• (b) The Company holds the liability primarily for the purpose of trading

• (c) The liability is due to be settled within twelve months after the reporting period

• (d) The Company does not have an unconditional right to defer settlement of the liability for at least twelve 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.

All other liabilities are classified as non-current.

• (5) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term, highly liquid time deposits (including ones that have maturity within 12 months) or investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

• (6) Financial instruments

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

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Financial assets and financial liabilities within the scope of IFRS 9 Financial Instruments are recognized initially at fair value plus or minus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs.

• (a) Financial instruments: Recognition and Measurement

The Company accounts for regular way purchase or sales of financial assets on the trade date.

The Company classified financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss considering both factors below:

• A. the Company’s business model for managing the financial assets and

• B. the contractual cash flow characteristics of the financial asset.

Financial assets measured at amortized cost

A financial asset is measured at amortized cost if both of the following conditions are met and presented as note receivables, trade receivables, financial assets measured at amortized cost and other receivables etc., on balance sheet as at the reporting date:

• A. the financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows and

• B. 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.

Such financial assets are subsequently measured at amortized cost (the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount and the maturity amount and adjusted for any loss allowance) and is not part of a hedging relationship. A gain or loss is recognized in profit or loss when the financial asset is derecognized, through the amortization process or in order to recognize the impairment gains or losses.

19

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

• A. purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

• B. financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Financial asset measured at fair value through other comprehensive income

A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:

• A. the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and

• B. 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.

Recognition of gain or loss on a financial asset measured at fair value through other comprehensive income are described as below:

• A. A gain or loss on a financial asset measured at fair value through other comprehensive income recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses, until the financial asset is derecognized or reclassified.

• B. When the financial asset is derecognized the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss as a reclassification adjustment.

• C. Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

• i. Purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.

• ii. Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Besides, for certain equity investments within the scope of IFRS 9 that is neither held for trading nor contingent consideration recognized by an acquirer in a business combination to which IFRS 3 applies, the Company made an irrevocable election to present the changes of the fair value in other comprehensive income at initial recognition. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss (when disposal of such equity instrument, its cumulated amount included in other components of equity is transferred directly to the retained earnings) and these investments should be presented as financial assets measured at fair value through other comprehensive income on the balance sheet. Dividends on such investment are recognized in profit or loss unless the dividends clearly represents a recovery of part of the cost of investment.

Financial asset measured at fair value through profit or loss

Financial assets were classified as measured at amortized cost or measured at fair value through other comprehensive income based on aforementioned criteria. All other financial assets were measured at fair value through profit or loss and presented on the balance sheet as financial assets measured at fair value through profit or loss.

Such financial assets are measured at fair value, the gains or losses resulting from remeasurement is recognized in profit or loss which includes any dividend or interest received on such financial assets.

(b) Impairment of financial assets

The Company recognizes a loss allowance for expected credit losses on debt instrument investments measured at fair value through other comprehensive income and financial asset measured at amortized cost. The loss allowance on debt instrument investments measured at fair value through other comprehensive income is recognized in other comprehensive income and not reduce the carrying amount in the balance sheet.

The Company measures expected credit losses of a financial instrument in a way that reflects:

• A. an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;

• B. the time value of money; and

• C. reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

The loss allowance is measures as follow:

• A. At an amount equal to 12-month expected credit losses: the credit risk on a financial asset has not increased significantly since initial recognition or the financial asset is determined to have low credit risk at the reporting date. In addition, the Company measures the loss allowance at an amount equal to lifetime expected credit losses in the previous reporting period, but determines at the current reporting date that the credit risk on a financial asset has increased significantly since initial recognition is no longer met.

• B. At an amount equal to the lifetime expected credit losses: the credit risk on a financial asset has increased significantly since initial recognition or financial asset that is purchased or originated credit-impaired financial asset.

• C. For trade receivables or contract assets arising from transactions within the scope of IFRS 15, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

• D. For lease receivables arising from transactions within the scope of IFRS 16, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

At each reporting date, the Company needs to assess whether the credit risk on a financial asset has increased significantly since initial recognition by comparing the risk of a default occurring at the reporting date and the risk of default occurring at initial recognition. Please refer to Note 12 for further details on credit risk.

(c) Derecognition of financial assets

A financial asset is derecognized when:

• A. The rights to receive cash flows from the asset have expired

• B. The Company has transferred the asset and substantially all the risks and rewards of the asset have been transferred

• C. The Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carrying amount and the consideration received or receivable including any cumulative gain or loss that had been recognized in other comprehensive income, is recognized in profit or loss.

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

• (d) Financial liabilities and equity

Classification between liabilities or equity

The Company classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The transaction costs of an equity transaction are accounted for as a deduction from equity (net of any related income tax benefit) to the extent they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided.

Financial liabilities

Financial liabilities within the scope of IFRS 9 Financial Instruments are classified as financial liabilities at fair value through profit or loss or financial liabilities measured at amortized cost upon initial recognition.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated as at fair value through profit or loss. A financial liability is classified as held for trading if:

• A. it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;

• B. on initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of short-term profit-taking; or

• C. it is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

If a contract contains one or more embedded derivatives, the entire hybrid (combined) contract may be designated as a financial liability at fair value through profit or loss; or a financial liability may be designated as at fair value through profit or loss when doing so results in more relevant information, because either:

• A. it eliminates or significantly reduces a measurement or recognition inconsistency; or

• B. a group of financial liabilities or financial assets and financial liabilities is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the Company is provided internally on that basis to the key management personnel.

Gains or losses on the subsequent measurement of liabilities at fair value through profit or loss including interest paid are recognized in profit or loss.

Financial liabilities at amortized cost

Financial liabilities measured at amortized cost include interest bearing loans and borrowings that are subsequently measured using the effective interest rate method after initial recognition. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the effective interest rate method amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or transaction costs.

Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified (whether or not attributable to the financial difficulty of the debtor), such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

24

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

• (e) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

(7) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

• (a) In the principal market for the asset or liability, or

• (b) In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible to by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

(8) Inventories

Inventory costs include costs incurred in bringing each inventory to its present location and condition. Inventories are accounted for on a perpetual basis and stated at actual purchase costs, using weighted average method.

Inventories are valued at lower of cost and net realizable value item by item. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

25

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

(9) Investments accounted for using the equity method

The Company accounted for its investments in subsidiaries using equity method and made necessary adjustments in accordance with Article 21 of the Regulations. Such adjustments were made after the Company considered the different accounting treatments to account for its investments in subsidiaries in the consolidated financial statements under IFRS 10 “Consolidated Financial Statements” and the different IFRSs adopted from different reporting entity’s perspectives, and the Company recorded such adjustments by crediting or debiting to investments accounted for under the equity method, share of profit or loss of subsidiaries, associates and joint ventures and share of other comprehensive income of subsidiaries, associates and joint ventures.

The Company’s investment in its associate is accounted for using the equity method other than those that meet the criteria to be classified as held for sale. An associate is an entity over which the Company has significant influence.

Under the equity method, the investment in the associate is carried in the balance sheet at cost and adjusted thereafter for the post-acquisition change in the Company’s share of net assets of the associate. After the interest in the associate is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Company has incurred legal or constructive obligations or made payments on behalf of the associate. Unrealized gains and losses resulting from transactions between the Company and the associate are eliminated to the extent of the Company’s related interest in the associate.

When changes in the net assets of an associate occur and not those that are recognized in profit or loss or other comprehensive income and do not affects the Company’s percentage of ownership interests in the associate, the Company recognizes such changes in equity based on its percentage of ownership interests. The resulting capital surplus recognized will be reclassified to profit or loss at the time of disposing the associate on a prorata basis.

When the associate issues new stock, and the Company’s interest in an associate is reduced or increased as the Company fails to acquire shares newly issued in the associate proportionately to its original ownership interest, the increase or decrease in the interest in the associate is recognized in Additional Paid in Capital and Investment accounted for using the equity method. When the interest in the associate is reduced, the cumulative amounts previously recognized in other comprehensive income are reclassified to profit or loss or other appropriate items. The aforementioned capital surplus recognized is reclassified to profit or loss on a pro rata basis when the Company disposes the associate.

The financial statements of the associate are prepared for the same reporting period as the Company. Where necessary, adjustments are made to bring the accounting policies in line with those of the Company.

26

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

The Company determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired in accordance with IAS 28 Investments in Associates and Joint Ventures . If this is the case the Company calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount in the ‘share of profit or loss of an associate’ in the statement of comprehensive income in accordance with IAS 36 Impairment of Assets . In determining the value in use of the investment, the Company estimates:

• (a) Its share of the present value of the estimated future cash flows expected to be generated by the associate, including the cash flows from the operations of the associate and the proceeds on the ultimate disposal of the investment; or

• (b) The present value of the estimated future cash flows expected to arise from dividends to be received from the investment and from its ultimate disposal.

Because goodwill that forms part of the carrying amount of an investment in an associate is not separately recognized, it is not tested for impairment separately by applying the requirements for impairment testing goodwill in IAS 36 Impairment of Assets .

Upon loss of significant influence over the associate, the Company measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss.

(10) Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of dismantling and removing the item and restoring the site on which it is located and borrowing costs for construction in progress if the recognition criteria are met. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. When significant parts of property, plant and equipment are required to be replaced in intervals, the Company recognized such parts as individual assets with specific useful lives and depreciation, respectively. The carrying amount of those parts that are replaced is derecognized in accordance with the derecognition provisions of IAS 16 Property, plant and equipment . When a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

27

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

Machinery and equipment 3 ～ 40 years Transportation equipment 3 ～ 10 years Other equipment 1 ～ 51 years

“Significant components” of buildings primarily comprised the main buildings and mechanical parking equipments, which are depreciated based on their respective useful economic life of 50 to 56 years and 16 years, respectively.

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is recognized in profit or loss.

The assets’ residual values, useful lives and methods of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate.

(11) Investment property

The Company’s owned investment properties are measured initially at cost, including transaction costs. The carrying amount includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met and excludes the costs of day-to-day servicing of an investment property. Subsequent to initial recognition, other than those that meet the criteria to be classified as held for sale (or are included in a disposal group that is classified as held for sale) in accordance with IFRS 5 Noncurrent Assets Held for Sale and Discontinued Operations , investment properties are measured using the cost model in accordance with the requirements of IAS 16 Property, plant and equipment for that model. If investment properties are held by a lessee as right-of-use assets and is not held for sale in accordance with IFRS 5, investment properties are measured in accordance with the requirements of IFRS 16.

Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

Buildings 51 years

Investment properties are derecognized when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period of derecognition.

28

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

The Company transfers properties to or from investment properties according to the actual use of the properties.

The Company transfers to or from investment properties when there is a change in use for these assets. Properties are transferred to or from investment properties when the properties meet, or cease to meet, the definition of investment property and there is evidence of the change in use.

(12) Leases

The Company assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset for a period of time, the Company assesses whether, throughout the period of use, has both of the following:

• (a) the right to obtain substantially all of the economic benefits from use of the identified asset; and

• (b) the right to direct the use of the identified asset.

The Company elected not to reassess whether a contract is, or contains, a lease on January 1, 2020. The Company is permitted to apply IFRS 16 to contracts that were previously identified as leases applying IAS 17 and IFRIC 4 but not to apply IFRS 16 to contracts that were not previously identified as containing a lease applying IAS 17 and IFRIC 4.

For a contract that is, or contains, a lease, the Company accounts for each lease component within the contract as a lease separately from non-lease components of the contract. For a contract that contains a lease component and one or more additional lease or non-lease components, the Company allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate standalone price of the non-lease components. The relative stand-alone price of lease and non-lease components shall be determined on the basis of the price the lessor, or a similar supplier, would charge the Company for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the Company estimates the stand-alone price, maximising the use of observable information.

Company as a lessee

Except for leases that meet and elect short-term leases or leases of low-value assets, the Company recognizes right-of-use asset and lease liability for all leases which the Company is the lessee of those lease contracts.

29

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

At the commencement date, the Company measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses its incremental borrowing rate. At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:

• (a) fixed payments (including in-substance fixed payments), less any lease incentives receivable;

• (b) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• (c) amounts expected to be payable by the lessee under residual value guarantees;

• (d) the exercise price of a purchase option if the Company is reasonably certain to exercise that option; and

• (e) payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

After the commencement date, the Company measures the lease liability on an amortised cost basis, which increases the carrying amount to reflect interest on the lease liability by using an effective interest method; and reduces the carrying amount to reflect the lease payments made.

At the commencement date, the Company measures the right-of-use asset at cost. The cost of the right-of-use asset comprises:

• (a) the amount of the initial measurement of the lease liability;

• (b) any lease payments made at or before the commencement date, less any lease incentives received;

• (c) any initial direct costs incurred by the lessee; and

• (d) an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

For subsequent measurement of the right-of-use asset, the Company measures the right-ofuse asset at cost less any accumulated depreciation and any accumulated impairment losses. That is, the Company measures the right-of-use applying a cost model.

30

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

If the lease transfers ownership of the underlying asset to the Company by the end of the lease term or if the cost of the right-of-use asset reflects that the Company will exercise a purchase option, the Company depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Company depreciates the rightof-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term.

The Company applies IAS 36 “Impairment of Assets” to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.

Except for those leases that the Company accounted for as short-term leases or leases of lowvalue assets, the Company presents right-of-use assets and lease liabilities in the balance sheet and separately presents lease-related interest expense and depreciation charge in the statements comprehensive income.

For short-term leases or leases of low-value assets, the Company elects to recognize the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis.

Company as a lessor

At inception of a contract, the Company classifies each of its leases as either an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset. At the commencement date, the Company recognizes assets held under a finance lease in its balance sheet and present them as a receivable at an amount equal to the net investment in the lease.

For a contract that contains lease components and non-lease components, the Company allocates the consideration in the contract applying IFRS 15.

The Company recognizes lease payments from operating leases as rental income on either a straight-line basis or another systematic basis. Variable lease payments for operating leases that do not depend on an index or a rate are recognized as rental income when incurred.

31

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

(13) Impairment of non-financial assets

The Company assesses at the end of each reporting period whether there is any indication that an asset in the scope of IAS 36 Impairment of Assets may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cashgenerating unit’s (“CGU”) fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Company estimates the asset’s or cashgenerating unit’s recoverable amount. A previously recognized impairment loss is reversed only if there has been an increase in the estimated service potential of an asset which in turn increases the recoverable amount. However, the reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years.

An impairment loss of continuing operations or a reversal of such impairment loss is recognized in profit or loss.

• (14) Revenue recognition

Operating revenue

The Company provides accommodations and foodservice related products, and the sales revenue is recognized when services are rendered or products are delivered to customers.

• (a) Food and beverage sales are recognized when products are delivered to customers; meawhile, collecting the priceform customers.

• (b) Room revenue is recognized when services are rendered to customers during the financial reporting periods. Customers pay the bills based on the agreed payment schedule.

Dividends

Revenue is recognized when the Company’s right to receive the dividends.

32

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

(15) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

(16) Post-employment benefits

All regular employees of the Company are entitled to a pension plan that is managed by an independently administered pension fund committee. Fund assets are deposited under the committee’s name in the specific bank account and hence, not associated with the Company. Therefore, fund assets are not included in the Company’s parent company only financial statements.

For the defined contribution plan, the Company will make a monthly contribution of no less than 6% of the monthly wages of the employees subject to the plan. The Company recognizes expenses for the defined contribution plan in the period in which the contribution becomes due.

Post-employment benefit plan that is classified as a defined benefit plan uses the Projected Unit Credit Method to measure its obligations and costs based on actuarial assumptions. Remeasurements, comprising of the effect of the actuarial gains and losses, the effect of the asset ceiling (excluding net interest) and the return on plan assets, excluding net interest, are recognized as other comprehensive income with a corresponding debit or credit to retained earnings in the period in which they occur.

Past service costs are recognized in profit or loss on the earlier of:

• (a) the date of the plan amendment or curtailment, and

• (b) the date that the Company recognizes restructuring-related costs

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset, both as determined at the start of the annual reporting period, taking account of any changes in the net defined benefit liability (asset) during the period as a result of contribution and benefit payment.

(17) Income taxes

Income tax expense (income) is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

33

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Current income tax relating to items recognized in other comprehensive income or directly in equity is recognized in other comprehensive income or equity and not in profit or loss.

The income tax for undistributed earnings is recognized as income tax expense in the subsequent year when the distribution proposal is approved by the Shareholders’ meeting.

Deferred tax

Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

• (a) Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss

• (b) In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

• (a) Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss

• (b) In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

34

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date. The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity. Deferred tax assets are reassessed at each reporting date and are recognized accordingly.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

5. Significant accounting judgements, estimates and assumptions

The preparation of the Company’s parent company only financial statements require management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumption and estimate could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

(1) Judgement

In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognized in the parent company only financial statements:

(a) Investment properties

Certain properties of the Company comprise a portion that is held to earn rentals or for capital appreciation and another portion that is owner-occupied. If these portions could be sold separately, the Company accounts for the portions separately as investment properties and property, plant and equipment. If the portions could not be sold separately, the property is classified as investment property in its entirety only if the portion that is owner-occupied is under 10% of the total property.

－ (b) Operating lease commitment Company as the lessor

The Company has entered into commercial property leases on its investment property portfolio. The Company has determined, based on an evaluation of the terms and conditions of the arrangements, that it retains all the significant risks and rewards of ownership of these properties and accounts for the contracts as operating leases.

35

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

• (2) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

• (a) Fair value of financial instruments

Where the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be derived from active markets, they are determined using valuation techniques including the income approach (for example the discounted cash flows model) or market approach. Changes in assumptions about these factors could affect the reported fair value of the financial instruments. Please refer to Note 12 for more details.

• (b) Pension benefits

The cost of post-employment benefit and the present value of the pension obligation under defined benefit pension plans are determined using actuarial valuations. An actuarial valuation involves making various assumptions. These include the determination of the discount rate and changes of the future salary etc. The assumptions used for measuring pension cost and defined benefit obligation are disclosed in Note 6.

• (c) Income tax

Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Company establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective counties in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective company's domicile.

Deferred tax assets are recognized for all carryforward of unused tax losses and unused tax credits and deductible temporary differences to the extent that it is probable that taxable profit will be available or there are sufficient taxable temporary differences against which the unused tax losses, unused tax credits or deductible temporary differences can be utilized. The amount of deferred tax assets determined to be recognized is based upon the likely timing and the level of future taxable profits and taxable temporary differences together with future tax planning strategies.

36

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

6. Contents of significant accounts

• (1) Cash and cash equivalents

Cash on hand Petty cash Demand deposits Checking accounts Cash equivalents Total	December 31, 2021	December 31, 2020
	$5,342 2,531 75,910 23,936 190,693	$2,661 3,969 42,969 23,395 139,619
	$298,412	$212,613

Cash equivalents comprise highly liquid commercial paper that is readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

• (2) Financial assets at fair value through profit or loss

Mandatorily measured at fair value through profit or loss: Beneficiary certificate Current Non-current Total	December 31, 2021	December 31, 2020
	$718,570	$676,518
	$- 718,570	$- 676,518
	$718,570	$676,518

Financial assets at fair value through profit or loss were not pledged.

• (3) Financial assets at fair value through other comprehensive income

Equity instrument investments measured at fair value through other comprehensive income: Listed company stocks Unlisted company stocks Current Non-current Total	December 31, 2021	December 31, 2020
	$5,713,087 211,946 $5,713,087 211,946	$2,945,080 169,165 $2,945,080 169,165
	$5,925,033	$3,114,245

37

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

The Company’s dividend income related to equity instrument investments measured at fair value through other comprehensive income for the years ended December 31, 2021 and 2020 are NT$175,305 thousand and NT$76,350 thousand, respectively. And the dividend income is related to investments held at the end of the reporting period.

Financial assets at fair value through other comprehensive income were not pledged.

(4) Financial assets measured at amortized cost

Demand deposits Current Non-current Total	December 31, 2021	December 31, 2020
	$15,930	$15,930
	$- 15,930	$- 15,930
	$15,930	$15,930

The Company classified certain financial assets as financial assets measured at amortized cost. Please refer to Note 8 for more details on financial assets measured at amortized cost under pledge.

(5) Notes receivables

Notes receivables arising from operating activities Less: loss allowance Total Notes receivables were not pledged.	December 31, 2021	December 31, 2020
	$167 (160)	$818 (304)
	$7	$514

(6) Accounts receivable

Accounts receivable Less: loss allowance Total	December 31, 2021	December 31, 2020
	$37,411 (1,488)	$48,050 (1,379)
	$35,923	$46,671

38

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

• (a) Accounts receivables were not pledged.

• (b) Accounts receivables are generally on 60 to 90 day terms. The total carrying amount of accounts receivables and notes receivables are NT$37,578 thousand and NT$48,868 thousand as of December 31, 2021 and 2020, respectively.

The movement in the provision for impairment of accounts receivables and notes receivables during the years ended December 31, 2021 and 2020 is as follows: (Please refer to Note 12 for more details on credit risk.)

As of January 1, 2021 Addition/(reversal) for the current period As of December 31, 2021 As of January 1, 2020 Addition/(reversal) for the current period As of December 31, 2020	Notes receivables and accounts receivables
	$1,683 (35)
	$1,648
	$1,851 (168)
	$1,683

• (c) Accounts receivables are generally on 60 to 90 day terms. The aging analysis of net amount of accounts receivables is as follows:

Not yet due and not impaired Overdue but not impaired Total	December 31, 2021	December 31, 2020
	$35,923 -	$46,671 -
	$35,923	$46,671

• (7) Inventories

Foods Beverages Cigarettes and others Total	December 31, 2021	December 31, 2020
	$38,735 38,953 1,108	$40,498 36,341 1,546
	$78,796	$78,385

39

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

• (a) The cost of inventories recognized in expenses amounts to NT$467,284 thousand and NT$588,117 thousand for the years ended December 31, 2021 and 2020, respectively, and accounted for the cost of catering under operating costs.

• (b) No inventories were pledged.

• (8) Investments accounted for using the equity method

• (a) The following table lists the investments accounted for using the equity method of the Company:

Investees	December 31, 2021	December 31, 2021	December 31, 2020	December 31, 2020
	Carrying amount	Percentage of ownership (%)	Carrying amount	Percentage of ownership (%)
Investments in subsidiaries： Ambassador Premium Food Co., Ltd. Ambassador Real Estate Development Co. (Note1) Benz Investment Ltd. Custom Investment Ltd. Ambassador Investment Ltd. Ambassador Bakery Corp. Ltd. Ambassador Property Management and Maintenance Co., Ltd(Note 2) Subtotal Investments in associates： Yu Der Investment Corp. Cheng Der Investment Corp. Qun Xin Properties Co., Ltd. (Note3) Yeangder Safety Management Consulting Co., Ltd. Subtotal Total	$56,538 5,435 1,094,137 1,181,170 819,769 6,932 9,317	100.00 100.00 99.99 99.99 99.99 60.00 100.00 22.50 27.06 - 10.00	$57,038 5,300 957,533 1,156,903 803,840 7,060 -	100.00 100.00 99.99 99.99 99.99 60.00 - 22.50 27.06 25.71 10.00
	3,173,298		2,987,674
	126,863 137,747 - 880		123,841 130,987 58,953 885
	265,490		314,666
	$3,438,788		$3,302,340

40

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

• Note1: The Company established Ambassador Real Estate Development Co. with NT$5,000 thousand in June 2020. The holding share percentage maintain 100%. The main actvities are real estate development and leasing.

• Note2: The Company established Ambassador Property Management and Maintenance Co., Ltd with NT$10,000 thousand on March 31, 2021.

• Note3: On October 29 2021, The Company elected not to participate in the cash capital increase of Qun Xin Proerties Co., Ltd, the percentage of ownership is decrease from 25.71% to 12.41% lend to reclassify from investments accounted for using the equity method to FVOCI-non current.

• (b) The percentage of ownership of some associates is less than 20%; however, the Company has significant influence by getting directors and holding voting shares of these associates indirectly, and therefore accounts for the investment by using the equity method.

• (c) The Company accounted for its investments in subsidiaries using equity method and made necessary adjustments in the parent company only financial statements.

• (d) The Company’s investments in associates are not individually material. The aggregate carrying amount of the Company’s investments in associates is NT$265,490 thousand as of 31 December 2021. The aggregate financial information of the Company’s investments in associates is as follows:

Profit or loss from continuing operations Other comprehensive income (post-tax) Total comprehensive income	For theyears ended December 31,	For theyears ended December 31,
	2021	2020
	$(25,992) 8,085	$(43,408) 9,400
	$(17,907)	$(34,008)

• (f) The subsidiaries and associates had no contingent liabilities or capital commitments as of December 31, 2021 and 2020. Investments in subsidiaries and associates were not pledged.

41

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

(9) Property, plant and equipment

Owner occupied property, plant and equipment Land Buildings Machinery equipment Cost: As of January 1, 2021 $1,622,897 $9,070,528 $471,958 Additions - 1,675 216 Disposals - (154) (1,205) Transfers and other changes - 144,159 12,444 As of December 31, 2021 $1,622,897 $9,216,208 $483,413 As of January 1, 2020 $1,566,467 $8,821,089 $462,152 Additions 56,430 1,742 248 Disposals - (1,052) (1,481) Transfers and other changes - 248,749 11,039 As of December 31, 2020 $1,622,897 $9,070,528 $471,958 Depreciation and impairment: As of January 1, 2021 $- $5,684,002 $401,638 Depreciation - 197,125 17,477 Disposals - (154) (1,206) Transfers and other changes - 1,141 (1,562) As of December 31, 2021 $- $5,882,114 $416,347 As of January 1, 2020 $- $5,495,152 $386,208 Depreciation - 189,394 16,912 Disposals - (544) (1,482) Transfers and other changes - - - As of December 31, 2020 $- $5,684,002 $401,638 Net carrying amount as of: December 31, 2021 $1,622,897 $3,334,094 $67,066 December 31, 2020 $1,622,897 $3,386,526 $70,320	Owner occupied property, plant and equipment Land Buildings Machinery equipment Cost: As of January 1, 2021 $1,622,897 $9,070,528 $471,958 Additions - 1,675 216 Disposals - (154) (1,205) Transfers and other changes - 144,159 12,444 As of December 31, 2021 $1,622,897 $9,216,208 $483,413 As of January 1, 2020 $1,566,467 $8,821,089 $462,152 Additions 56,430 1,742 248 Disposals - (1,052) (1,481) Transfers and other changes - 248,749 11,039 As of December 31, 2020 $1,622,897 $9,070,528 $471,958 Depreciation and impairment: As of January 1, 2021 $- $5,684,002 $401,638 Depreciation - 197,125 17,477 Disposals - (154) (1,206) Transfers and other changes - 1,141 (1,562) As of December 31, 2021 $- $5,882,114 $416,347 As of January 1, 2020 $- $5,495,152 $386,208 Depreciation - 189,394 16,912 Disposals - (544) (1,482) Transfers and other changes - - - As of December 31, 2020 $- $5,684,002 $401,638 Net carrying amount as of: December 31, 2021 $1,622,897 $3,334,094 $67,066 December 31, 2020 $1,622,897 $3,386,526 $70,320	Owner occupied property, plant and equipment Land Buildings Machinery equipment Cost: As of January 1, 2021 $1,622,897 $9,070,528 $471,958 Additions - 1,675 216 Disposals - (154) (1,205) Transfers and other changes - 144,159 12,444 As of December 31, 2021 $1,622,897 $9,216,208 $483,413 As of January 1, 2020 $1,566,467 $8,821,089 $462,152 Additions 56,430 1,742 248 Disposals - (1,052) (1,481) Transfers and other changes - 248,749 11,039 As of December 31, 2020 $1,622,897 $9,070,528 $471,958 Depreciation and impairment: As of January 1, 2021 $- $5,684,002 $401,638 Depreciation - 197,125 17,477 Disposals - (154) (1,206) Transfers and other changes - 1,141 (1,562) As of December 31, 2021 $- $5,882,114 $416,347 As of January 1, 2020 $- $5,495,152 $386,208 Depreciation - 189,394 16,912 Disposals - (544) (1,482) Transfers and other changes - - - As of December 31, 2020 $- $5,684,002 $401,638 Net carrying amount as of: December 31, 2021 $1,622,897 $3,334,094 $67,066 December 31, 2020 $1,622,897 $3,386,526 $70,320	Owner occupied property, plant and equipment Land Buildings Machinery equipment Cost: As of January 1, 2021 $1,622,897 $9,070,528 $471,958 Additions - 1,675 216 Disposals - (154) (1,205) Transfers and other changes - 144,159 12,444 As of December 31, 2021 $1,622,897 $9,216,208 $483,413 As of January 1, 2020 $1,566,467 $8,821,089 $462,152 Additions 56,430 1,742 248 Disposals - (1,052) (1,481) Transfers and other changes - 248,749 11,039 As of December 31, 2020 $1,622,897 $9,070,528 $471,958 Depreciation and impairment: As of January 1, 2021 $- $5,684,002 $401,638 Depreciation - 197,125 17,477 Disposals - (154) (1,206) Transfers and other changes - 1,141 (1,562) As of December 31, 2021 $- $5,882,114 $416,347 As of January 1, 2020 $- $5,495,152 $386,208 Depreciation - 189,394 16,912 Disposals - (544) (1,482) Transfers and other changes - - - As of December 31, 2020 $- $5,684,002 $401,638 Net carrying amount as of: December 31, 2021 $1,622,897 $3,334,094 $67,066 December 31, 2020 $1,622,897 $3,386,526 $70,320	December 31, 2021 December 31, 2020 $5,366,023 $5,411,508 Transportation and communication equipment Other equipment Construction in progress and equipment awaiting examination Total	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2020	December 31, 2020
						$5,366,023		$5,411,508
						Other equipment			Total
	$1,622,897 - - -	$9,070,528 1,675 (154) 144,159	$471,958 216 (1,205) 12,444	$126,970 - (1,334) 4,387		$746,701 4,098 (4,198) 8,988	$160,482 207,090 - (173,292)		$12,199,536 213,079 (6,891) (3,314)
	$1,622,897	$9,216,208	$483,413	$130,023		$755,589	$194,280		$12,402,410
	$1,566,467 56,430 - -	$8,821,089 1,742 (1,052) 248,749	$462,152 248 (1,481) 11,039	$116,293 - (259) 10,936		$679,366 2,463 (8,257) 73,129	$328,504 175,443 - (343,465)		$11,973,871 236,326 (11,049) 388
	$1,622,897	$9,070,528	$471,958	$126,970		$746,701	$160,482		$12,199,536
	$- - - -	$5,684,002 197,125 (154) 1,141	$401,638 17,477 (1,206) (1,562)	$103,771 4,735 (1,333) -		$598,617 37,055 (4,148) (771)	$- - - -		$6,788,028 256,392 (6,841) (1,192)
	$-	$5,882,114	$416,347	$107,173		$630,753	$-		$7,036,387
	$- - - -	$5,495,152 189,394 (544) -	$386,208 16,912 (1,482) -	$99,330 4,700 (259) -		$570,950 35,714 (8,047) -	$- - - -		$6,551,640 246,720 (10,332) -
	$-	$5,684,002	$401,638	$103,771		$598,617	$-		$6,788,028
	$1,622,897	$3,334,094	$67,066	$22,850		$124,836	$194,280		$5,366,023
	$1,622,897	$3,386,526	$70,320	$23,199		$148,084	$160,482		$5,411,508

(a) There was no capitalization on interest expense to property, plant and equipment for the years ended December 31, 2021 and 2020.

• (b) Please refer to Note 8 for more details on property, plant and equipment under pledge.

42

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

(10) Investment property

The Company has entered into commercial property leases on its owned investment properties with terms of 3 years. These leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions. The investment properties held by the Company as right-of-use assets with non-cancellable period of 3 years. These contracts provide the Company options to extend the leases.

Cost： As of January 1, 2021 Additions Transfers As of December 31, 2021 As of January 1, 2020 Additions Disposals As of December 31, 2020 Depreciation and impairment： As of January 1, 2021 Depreciation Transfers As of December 31, 2021 As of January 1, 2020 Depreciation Disposals As of December 31, 2020 Net carrying amount as of: December 31, 2021 December 31, 2020	Land	Buildings	Total
	$62,418 - -	$12,842 - 2,058	$75,260 - 2,058
	$62,418	$14,900	$77,318
	$62,418 - -	$12,842 - -	$75,260 - -
	$62,418	$12,842	$75,260
	$- - -	$2,643 595 647	$2,643 595 647
	$-	$3,885	$3,885
	$- - -	$2,391 252 -	$2,391 252 -
	$-	$2,643	$2,643
	$62,418	$11,015	$73,433
	$62,418	$10,199	$72,617

• (a) Rental income from investment properties held by the Company is NT$1,080 thousand and NT$2,160 thousand for the years ended December 31, 2021 and 2020, respectively, recognized asnon-operating income. There was no significat direct operating expenses to investment property generating rental income except for depreciation expenses.

43

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

(b) No investment property was pledged.

• (c) Investment properties held by the Company are not measured at fair value but for which the fair value is disclosed. The fair value measurements of the investment properties are categorized within Level 3. The fair value of investment properties located at Shilin district, Taipei is NT$193,300 thousand as of December 31, 2017. The fair value has been determined based on valuations performed by an independent valuer. The valuation methods used are comparison approach and income approach. The actual deals of the real estate nearby are the key assumption used in comparison approach. Considering the market annual rent and the capitalization rate, which is 1.84%, are the key assumptions used in income approach. The Company estimated the price per ping is NT$1,020 thousand as of December 31, 2017 by using the two valuation methods mentioned above.

The Company sold a portion of investment properties in April 2019 for NT$86,629 thousand and recognized income on disposal of investment properties in the amount of NT$14,264 thousand. The fair value of remaining investment properties is NT$104,266 thousand as of December 31, 2017 based on valuations performed by an independent valuer.

As of December 31, 2021 and 2020, the Company assessed the fair value of the investment properties according to the similar target’s recent transaction price and rental price of property transaction actual price query in Ministry of the Interior and websites of real estate agent. The results of the assessment are equvalent to the fair value determined based on valuations performed by an independent valuer.

(11) Short-term loans

Unsecured bank loans Secured bank loans Total	Interest Rates (%)	December 31, 2021	December 31, 2020
	0.75%~0.76% 0.75%~0.85%	$1,200,000 1,670,000	$600,000 320,000
		$2,870,000	$920,000

• (a) Please refer to Note 6 (14) for the Company’s unused short-term lines of credits as of December 31, 2021 and 2020.

• (b) Please refer to Note 8 for more details on assets pledged as security for short-term loans.

44

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

(12) Short-term bills payables

Guarantee Agency	Interest Rates (%)	December 31, 2021	December 31, 2020
Issued and guaranteed by financial institutions Loss: Unamortized discount Net	0.81%~0.81%	$400,000 -	$- -
		$400,000	$-

(13) Other payables

Accrued employees’ bonuses Accrued employees’ compensation and remuneration to directors Accrued unused vacation leave Payable for machinery and equipment Payable for house and land value tax Dividend payable (Previous years) Others (Note) Total	December 31, 2021	December 31, 2020
	$294,706 32 19,722 5,686 17,936 15,188 49,965	$314,997 30,032 27,351 21,620 16,379 15,337 59,887
	$403,235	$485,603

Note: Individual payables amount not exceeded NT$10,000 thousand were aggregated as others.

(14) Long-term loans

• (a) Details of long-term loans as of December 31, 2021 and 2020 are as follows:

Lenders	December 31, 2021	Interest Rate(%)	Maturitydate and terms of repayment
Bank of Taiwan – Secured loans The Export-Import Bank of the Republic of China – Unsecured loans Subtotal Less: current portion Total	$100,000 13,333	0.95% 0.93%	Effective from Feburary 19, 2021 to Feburary 19, 2023. Principal will be repaid upon maturity. Interest is paid monthly. Effective from November 29, 2019 to November 28, 2022. Principal will be repaid every 6 months after 24 months of borrowing. Interest is paid monthly.
	113,333 (13,333)
	$100,000

45

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Lenders	December 31, 2020	Interest Rate(%)	Maturitydate and terms of repayment
Bank of Taiwan – Secured loans The Export-Import Bank of the Republic of China – unsecured loans Subtotal Less: current portion Total	$100,000 20,000	0.95% 0.93%	Effective from May 17, 2019 to Feburary 19, 2021. Principal will be repaid upon maturity. Interest is paid monthly. Effective from November 29, 2019 to November 28, 2022. Principal will be repaid upon maturity. Interest is paid monthly.
	120,000 (100,000)
	$20,000

• (b) The Company’s unused short-term and long-term lines of credits amount to NT$3,529,000 thousand and NT$5,664,598 thousand as of December 31, 2021 and 2020, respectively.

• (c) Please refer to Note 8 for more details on assets pledged as security for long-term loans.

(15) Post-employment benefits

Defined contribution plan

The Company adopted a defined contribution plan in accordance with the Labor Pension Act of the R.O.C. Under the Labor Pension Act, the Company will make monthly contributions of no less than 6% of the employees’ monthly wages to the employees’ individual pension accounts. The Company has made monthly contributions of 6% of each individual employee’s salaries or wages to employees’ pension accounts.

Expenses under the defined contribution plan for the years ended December 31, 2021 and 2020 are NT$38,889 thousand and NT$31,993 thousand, respectively.

Defined benefits plan

The Company adopts a defined benefit plan in accordance with the Labor Standards Act of the R.O.C. The pension benefits are disbursed based on the units of service years and the average salaries in the last month of the service year. Two units per year are awarded for the first 15 years of services while one unit per year is awarded after the completion of the 15th year. The total units shall not exceed 45 units. Under the Labor Standards Act, the Company contributes an amount equivalent to 4% of the employees’ total salaries and wages on a monthly basis to the pension fund deposited at the Bank of Taiwan in the name of the administered pension fund committee. Before the end of each year, the Company assesses the balance in the designated labor pension fund. If the amount is inadequate to pay pensions calculated for workers retiring in the same year, the Company will make up the difference in one appropriation before the end of March the following year.

46

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

The Ministry of Labor is in charge of establishing and implementing the fund utilization plan in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund. The pension fund is invested in-house or under mandation, based on a passive-aggressive investment strategy for long-term profitability. The Ministry of Labor establishes checks and risk management mechanism based on the assessment of risk factors including market risk, credit risk and liquidity risk, in order to maintain adequate manager flexibility to achieve targeted return without over-exposure of risk. With regard to utilization of the pension fund, the minimum earnings in the annual distributions on the final financial statement shall not be less than the earnings attainable from the amounts accrued from twoyear time deposits with the interest rates offered by local banks. Treasury Funds can be used to cover the deficits after the approval of the competent authority. As the Company does not participate in the operation and management of the pension fund, no disclosure on the fair value of the plan assets categorized in different classes could be made in accordance with paragraph 142 of IAS 19. The Company expects to contribute NT$3,120 thousand to its defined benefit plan during the 12 months beginning after December 31, 2021.

The average duration of the defined benefits plan obligation as of December 31, 2021 and 2020 are 10 years and 11 years.

Pension costs recognized in profit or loss are as follows:

Pension costs recognized in profit or loss are as follows:
Current period service costs Net interest of defined benefit liability (asset) Past service cost Settlements Total	For theyears ended December 31,
	2021	2020
	$2,447 348 (10,286) -	$3,723 905 - -
	$(7,491)	$4,628

Changes in the defined benefit obligation and fair value of plan assets are as follows:

Defined benefit obligation Plan assets at fair value Other non-current liabilities – net defined benefit liability	December 31, 2021	December 31, 2020	January 1, 2020
	$94,421 (51,697)	$125,706 (64,472)	$158,033 (65,198)
	$42,724	$61,234	$92,835

47

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Reconciliation of liability (asset) of the defined benefit plan is as follows:

As of January 1, 2020 Current period service costs Interest expense (income) Past service cost and gains and losses arising from settlements Subtotal Remeasurements of the net defined benefit liability (asset): Actuarial gains and losses arising from changes in demographic assumptions Actuarial gains and losses arising from changes in financial assumptions Experience adjustments Return on plan assets Subtotal Payments from the plan Contributions by employer Effect of changes in foreign exchange rates As of December 31, 2020 Current period service costs Interest expense (income) Past service cost and gains and losses arising from settlements Subtotal Remeasurements of the net defined benefit liability (asset): Actuarial gains and losses arising from changes in demographic assumptions Actuarial gains and losses arising from changes in financial assumptions Experience adjustments Return on plan assets Subtotal Payments from the plan Contributions by employer Effect of changes in foreign exchange rates As of December 31, 2021	Defined benefit obligation	Fair value of planassets	Net defined benefit liability (asset)
	$158,033 3,723 1,563 -	$(65,198) - (658) -	$92,835 3,723 905 -
	163,319 - (9,802) (9,371) -	(65,856) - - - (2,036)	97,463 - (9,802) (9,371) (2,036)
	(19,173)	(2,036)	(21,209)
	(18,440) - -	18,440 (15,020) -	- (15,020) -
	125,706 2,447 754 (10,286)	(64,472) - (406) -	61,234 2,447 348 (10,286)
	118,621 - (846) (493) -	(64,878) - - - (740)	53,743 - (846) (493) (740)
	(1,339)	(740)	(2,079)
	(22,861) - -	22,861 (8,940) -	- (8,940) -
	$94,421	$ (51,697)	$42,724

48

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

The following significant actuarial assumptions are used to determine the present value of the defined benefit obligation:

Discount rate Expected rate of salary increases	December 31, 2021	December 31, 2020
	0.734% 1.000%	0.390% 1.000%

A sensitivity analysis for significant assumptions is shown below:

Discount rate increases by 0.25% Discount rate decreases by 0.25% Rate of future salary increases by 0.25% Rate of future salary decreases by 0.25%	For theyears ended December 31,	For theyears ended December 31,	For theyears ended December 31,	For theyears ended December 31,
	2021		2020
	Increase in defined benefit obligation	Decrease in defined benefit obligation	Increase in defined benefit obligation	Decrease in defined benefit obligation
	$- 2,853 2,795 -	$2,746 - - 2,697	$- 3,997 3,963 -	$3,836 - - 3,822

The sensitivity analysis above is based on a change in a significant assumption (for example: change in discount rate or future salary), keeping all other assumptions constant. The sensitivity analysis may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another.

There was no change in the methods and assumptions used in preparing the sensitivity analysis compared to the previous period.

(16) Equity

• (a) Common stock

The Company’s issued capital as of December 31, 2021 and 2020 was NT$3,669,234 thousand, each at a par value of NT$10, divided into 366,923 thousand shares.

49

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

(b) Capital surplus

Additional paid-in capital Treasury share transactions Changes in ownership interests in subsidiaries Gain on sale of assets Donated assets Share of changes in net assets of associates and joint ventures accounted for using the equity method Total	December 31, 2021	December 31, 2020
	$2,859,851 21,750 22,046 19,667 8,817 11,012	$2,859,851 21,750 20,618 19,667 8,817 1,428
	$2,943,143	$2,932,131

According to the Company Act, the capital surplus shall not be used except for making good the deficit of the company. When a company incurs no loss, it may distribute the capital surplus related to the income derived from the issuance of new shares at a premium or income from endowments received by the company. The distribution could be made in cash or in the form of dividend shares to its shareholders in proportion to the number of shares being held by each of them.

(c) Retained earnings and dividend policies

According to the Company’s Articles of Incorporation, current year’s earnings, if any, shall be distributed in the following order:

• A. Payment of all taxes and dues;

• B. Offset prior years’ operation losses;

• C. Set aside 10% of the remaining amount after deducting items (a) and (b) as legal reserve;

• D. Set aside or reverse special reserve in accordance with law and regulations; and

• E. The distribution of the remaining portion, if any, will be recommended by the Board of Directors and resolved in the shareholders’ meeting.

Considering the future fund requirements and to meet the shareholders’ demand for cash. If there is surplus after the Company’s annual final settlement, cash dividends distributed each year cannot be less than 10% of the gross amount of dividends. However, if the future funds are abundant, the distribution ratio may be increased.

50

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

According to the Company Act, the Company needs to set aside amount to legal reserve unless where such legal reserve amounts to the total paid-in capital. The legal reserve can be used to make good the deficit of the Company. When the Company incurs no loss, it may distribute the portion of legal serve which exceeds 25% of the paid-in capital by issuing new shares or by cash in proportion to the number of shares being held by each of the shareholders.

Following the adoption of TIFRS, the FSC on 6 April 2012 issued Order No. FinancialSupervisory-Securities-Corporate-1010012865, which sets out the following provisions for compliance:

On a public company's first-time adoption of the IFRS, for any unrealized revaluation gains and cumulative translation adjustments (gains) recorded to shareholders’ equity that the company elects to transfer to retained earnings by application of the exemption under IFRS 1, the company shall set aside an equal amount of special reserve. Following a company’s adoption of the IFRS for the preparation of its financial reports, when distributing distributable earnings, it shall set aside to special reserve, from the profit/loss of the current period and the undistributed earnings from the previous period, an amount equal to “other net deductions from shareholders’ equity for the current fiscal year, provided that if the company has already set aside special reserve according to the requirements in the preceding point, it shall set aside supplemental special reserve based on the difference between the amount already set aside and other net deductions from shareholders’ equity. For any subsequent reversal of other net deductions from shareholders’ equity, the amount reversed may be distributed.

Details of the 2021 and 2020 earnings distribution and dividends per share as approved and resolved by the board of directors’ meeting and shareholders’ meeting on March 8, 2022 and August 24, 2021, respectively, are as follows:

Legal reserve Common stock -cash dividend Total	Appropriation of earnings	Appropriation of earnings	Dividendper share(NT$)	Dividendper share(NT$)
	2021	2020	2021	2020
	$637 -	$3,213 -	$-	$-
	$637	$3,213

Please refer to Note 6 (19) for details on employees’ compensation and remuneration to directors and supervisors.

51

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

(17) Operating revenue

Revenue from contracts with customers Room revenue Food and beverage sales Other operating revenue Total	For theyears ended December 31,	For theyears ended December 31,
	2021	2020
	$267,597 1,224,042 11,164	$379,598 1,600,466 11,080
	$1,502,803	$1,991,144

For the year ended December 31, 2021 and 2020, the impact of Covid-19 pandemic has been affecting global economic activities and certain industries, such as travel and hospitality. The Company’s room and food and beverage sales were also affected by the significant reduction in the number of international tourist and business trip, which leads to the downturn of earnings and gross profits of current year. Although the domestic epidemic situation has slowed, the international Covid-19 pandemic situation remains serve and many countries are still under lockdown measures. The Company is not yet possible to reasonably assess the future impact on the business and financial status.

Analysis of revenue from contracts with customers during the years ended December 31, 2021 and 2020 are as follows:

(a) Disaggregation of revenue

For the year ended December 31, 2021:

Room revenue Food and beverage sales Other operating revenue Total Timing of revenue recognition: At a point in time Over time Total	Taipei	Hsinchu	Kaohsiung	Total
	$18,785 632,629 5,511	$86,208 295,425 3,684	$162,604 295,988 1,969	$267,597 1,224,042 11,164
	$656,925	$385,317	$460,561	$1,502,803
	$638,140 18,785	$299,109 86,208	$297,957 162,604	$1,235,206 267,597
	$656,925	$385,317	$460,561	$1,502,803

52

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

For the year ended December 31, 2020:

Room revenue Food and beverage sales Other operating revenue Total Timing of revenue recognition: At a point in time Over time Total	Taipei	Hsinchu	Kaohsiung	Total
	$89,681 839,817 5,690	$109,356 368,742 2,680	$180,561 391,907 2,710	$379,598 1,600,466 11,080
	$935,188	$480,778	$575,178	$1,991,144
	$845,507 89,681	$371,422 109,356	$394,617 180,561	$1,611,546 379,598
	$935,188	$480,778	$575,178	$1,991,144

• (b) Contract balances

Contract liabilities – current

Room revenue Food and beverage sales Other operating revenue Total	December 31, 2021	December 31, 2020	January 1, 2020
	$63,022 137,326 123	$65,933 131,832 73	$58,872 141,486 73
	$200,471	$197,838	$200,431

For the years ended December 31, 2021 and 2020, NT$197,838 and NT$200,431 are recognized as revenue, respectively, during the period that was included in the beginning balances of contract liabilities.

(18) Leases

• (a) Company as a lessee

The Company leases various properties, including real estate (land and buildings) and transportation equipment. The lease terms range from 3 to 5 years.

53

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

The Company’s leases effect on the financial position, financial performance and cash flows are as follow:

• A. Amounts recognized in the balance sheet

• i. Right-of-use assets

The carrying amount of right-of-use assets

The carrying amount of right-of-use assets
Land Buildings Transportation equipment Total	December 31, 2021	December 31, 2020
	$45,089 872,896 4,871	$50,099 6,895 6,632
	$922,856	$63,626

During the year ended December 31, 2021, the Company’s additions to right-ofuse assets amount to NT$888,506 thousand.

ii Lease liabilities

Lease liabilities Current Non-current	December 31, 2021	December 31, 2020
	$940,083	$63,699
	$48,499	$12,879
	$891,584	$50,820

Please refer to Note 6 (20) for the interest on lease liabilities recognized during the year ended December 31, 2021 and refer to Note 12 (5) Liquidity Risk Management for the maturity analysis for lease liabilities.

• B. Amounts recognized in the statement of profit or loss

Depreciation charge for right-of-use assets

Land Buildings Transportation equipment Total	For theyears ended December 31,	For theyears ended December 31,
	2021	2020
	$5,010 19,825 4,441	$4,987 6,155 5,865
	$29,276	$17,007

54

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

• C. Income and costs relating to leasing activities

The expenses relating to short-term leases	For theyears ended December31,	For theyears ended December31,
	2021	2020
	$14,486	$13,941

• D. Cash outflow relating to leasing activities

During the year ended December 31, 2021, the Company’s total cash outflows for leases amounting to NT$29,648 thousand.

• E. Other information relating to leasing activities

Extension and termination options

Some of the Company’s land, buildings and transportation equipment rental agreement contain extension and termination options. In determining the lease terms, the non-cancellable period for which the Company has the right to use an underlying asset, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option and periods covered by an option to terminate the lease if the Company is reasonably certain not to exercise that option. These options are used to maximize operational flexibility in terms of managing contracts. The majority of extension and termination options held are exercisable only by the Company. After the commencement date, the Company reassesses the lease term upon the occurrence of a significant event or a significant change in circumstances that is within the control of the lessee and affects whether the Company is reasonably certain to exercise an option not previously included in its determination of the lease term, or not to exercise an option previously included in its determination of the lease term.

• (19) Summary statement of employee benefits, depreciation and amortization expenses by function is as follows:

		For theyears ended December	For theyears ended December	For theyears ended December	31,
		2021			2020
	Operating costs	Operating expenses	Total amount	Operating costs	Operating expenses	Total amount
Employee benefits expense
Salaries	$460,493	$168,893	$629,386	$628,266	$185,761	$814,027
Labor and health insurance	48,327	13,988	62,315	55,066	14,533	69,599
Pension	23,281	8,117	31,398	28,161	8,460	36,621
Directors' remuneration	-	12,930	12,930	-	12,936	12,936
Other employee benefits expense	25,141	8,347	33,488	30,547	7,923	38,470
Depreciation	208,438	77,825	286,263	196,572	67,407	263,979

55

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

• (a) The number of the Company’s employees were 973 and 1,181, including 12 and 11 nonemployee directors as of December 31, 2021 and 2020, respectively.

• (b) Other information is as follows:

• A. The Company's average employee benefit expenses for the years ended December 31, 2021 and 2020 were NT$787 thousand and NT$819 thousand, respectively.

• B. The Company's average salary expenses for the years ended December 31, 2021 and 2020 were NT$655 thousand and NT$696 thousand, respectively.

• C. The Company's average salary expense adjustment for the year ended December 31, 2021 decreased by 5.89%.

• D. The Company has established the Audit Committee in replace of supervisors and therefore the supervisors’ remuneration for the years ended December 31, 2021 and 2020 were both nil.

• E. The salary and remuneration policy of the Company: Articles 18 of the Company’s Articles of Incorporation stipulate that if the Compnay makes profits in the current year, it shall set aside 1% to 8% as the remuneration for employees and no more than 4% as the remuneration for directors and supervisors. In addition, the Company shall assess the performance of directors and managers according to Articles 7 of the Company’s Procedural Rules for Compensation Committee, in order to determine their compensation. An adequate compensation scheme will be calculated by referencing the individual contribution, extent of participation in the Company’s operations and industry averages. In accordance with the regulations, the compensation committee will make recommendations on directors’ remuneration and the salaries of managers, then submit to the Board of Directors for approval.

According to the Articles of Incorporation, 1% to 8% of profit of the current year is distributable as employees’ compensation and no higher than 4% of profit of the current year is distributable as remuneration to directors and supervisors. However, the company's accumulated losses shall have been covered. The Company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, have the profit distributable as employees’ compensation in the form of shares or in cash; and in addition thereto a report of such distribution is submitted to the shareholders’ meeting. Information on the Board of Directors’ resolution regarding the employees’ compensation and remuneration to directors and supervisors can be obtained from the “Market Observation Post System” on the website of the TWSE.

56

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

The Company did not accrue employees’ compensation and renumeration to directors and supervisors because of the losses before income taxes for the year ended December 31, 2021.

No material differences exist between the estimated amount and the actual distribution of the employee compensation for the year ended December 31, 2020.

(20) Non-operating income and expenses

(a) Interest income

For the years ended December 31,

Financial assets measured at amortized cost	2021	2020
	$607	$870

(b) Other income

For the years ended December 31,

Rental income Dividend income Government grants Compensation income Others Total	2021	2020
	$1,594 175,305 60,012 46 9,092	$2,310 76,350 87,602 44 25,965
	$246,049	$192,271

In April 2020, June 2021 and September 2021, the Tourism Bureau of the Ministry of Transportation and Communications announced a bailout subsidy program to assist the operation of tourism industry affected by the impact of Covid-19 pandemic. In accordance with the operation directions for bailout subsidy, the Company applies government grants for employee salaries and necessary operating costs. The grant is recognized as other income over the period necessary to match the costs that it is intended to compensate.

57

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

(c) Other gains and losses

Other gains and losses
Gains (losses) on disposal of property, plant and equipment Foreign exchange losses (gains), net Losses on disposal of investments Gains on financial assets at fair value through profit or loss (Note) Others Total	For theyears ended December 31,
	2021	2020
	$478 (1) (343) 42,052 (257)	$(619) 238 - 87,402 (314)
	$41,929	$86,707

Note: Balances were arising from financial assets mandatorily measured at fair value through profit or loss.

• (d) Finance costs

Finance costs
Interest on borrowings from bank Interest on lease liabilities Imputed interest on deposits Total	For theyears ended December 31,
	2021	2020
	$16,726 3,234 10	$4,561 227 10
	$19,970	$4,798

• (21) Components of other comprehensive income (loss)

For the year ended December 31, 2021:

Items that will not be reclassified subsequently to profit or loss: Remeasurements of defined benefit plans Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income Items that may be reclassified subsequently to profit or loss: Share of other comprehensive income (loss) of associates and joint ventures accounted for using the equity method Total other comprehensive income (loss)	Arising during theperiod	Reclassification adjustments during the period	Other comprehensive income (loss), before tax	Income tax relating to components of other comprehensive income	Other comprehensive income (loss), net of tax
	$2,079 746,900 102,559	$- - -	$2,079 746,900 102,559	$(415) - -	$1,664 746,900 102,559
	$851,538	$-	$851,538	$(415)	$851,123

58

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

For the year ended December 31, 2020:

Items that will not be reclassified subsequently to profit or loss: Remeasurements of defined benefit plans Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income Items that may be reclassified subsequently to profit or loss: Share of other comprehensive income (loss) of associates and joint ventures accounted for using the equity method Total other comprehensive income (loss)	Arising during theperiod	Reclassification adjustments during the period	Other comprehensive income (loss), before tax	Income tax relating to components of other comprehensive income	Other comprehensive income (loss), net of tax
	$21,209 269,117 203,598	$- - -	$21,209 269,117 203,598	$(4,242) - -	$16,967 269,117 203,598
	$493,924	$-	$493,924	$(4,242)	$489,682

(22) Income tax

• (a) The major components of income tax expense (benefit) for the years ended December 31, 2021 and 2020 are as follows:

Income tax expense (benefit) recognized in profit or loss

Current income tax expense (benefit): Current income tax (refund) charge Adjustments in respect of current income tax of prior periods Deferred tax expense (benefit): Deferred tax expense (benefit) relating to origination and reversal of temporary differences Deferred tax expense (benefit) relating to changes in tax rate or the imposition of new taxes Total income tax expense (benefit)	For theyears ended December31,	For theyears ended December31,
	2021	2020
	$(2,329) (2,291) 7,944 -	$8,623 2,797 (10,860) -
	$3,324	$560

Income tax relating to components of other comprehensive income (loss)

Deferred tax expense (benefit): Remeasurements of defined benefits plans Income tax relating to components of other comprehensive income	For theyears ended December31,	For theyears ended December31,
	2021	2020
	$(415)	$(4,242)
	$(415)	$(4,242)

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

• (b) Reconciliation between tax expense and the product of accounting profit multiplied by applicable tax rates is as follows:

Accounting (loss) profit before tax from continuing operations Tax at the domestic rates applicable to profits in the country concerned Tax effect of revenues exempt from taxation Tax effect of expenses not deductible for tax purposes Corporate income surtax on undistributed retained earnings Adjustments in respect of current income tax of prior periods Others Total income tax expense recognized in profit or loss	For the years ended December 31,	For the years ended December 31,
	2021	2020
	$(85,294)	$3,168
	$(17,059) (51,067) 3 (2,329) (2,291) 76,067	$634 (35,833) 3 8,623 2,797 24,336
	$3,324	$560

• (c) Deferred tax assets (liabilities) relate to the following:

For the year ended December 31, 2021:

Temporary differences－Deferred tax assets Depreciation difference for tax purpose Loss allowance Accrued employee benefits Defined benefit liabilities, non-current Remeasurements of defined benefits plans Impairment on financial assets at cost Temporary differences－Deferred tax liabilities Revaluation of financial assets at fair value through profit or loss Provisions－land value incemant tax Deferred tax income/(expense) Net deferred tax assets/(liabilities) Reflected in balance sheet as follows: Deferred tax assets Deferred tax liabilities	Beginning balance	Recognized in profit or loss	Recognized in other comprehensive income	Endingbalance
	$63,761 146 35,269 24,609 3,867 229 (55,383) (34,170)	$(1,302) - 3,167 (1,398) - - (8,411) -	$- - - - (415) - - -	$62,459 146 38,436 23,211 3,452 229 (63,794) (34,170)
		$(7,944)	$(415)
	$38,328			$29,969
	$127,881			$127,933
	$(89,553)			$(97,964)

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

For the year ended December 31, 2020:

Temporary differences－Deferred tax assets Depreciation difference for tax purpose Loss allowance Accrued employee benefits Defined benefit liabilities, non-current Remeasurements of defined benefits plans Impairment on financial assets at cost Temporary differences－Deferred tax liabilities Revaluation of financial assets at fair value through profit or loss Provisions－land value incemant tax Deferred tax income/(expense) Net deferred tax assets/(liabilities) Reflected in balance sheet as follows: Deferred tax assets Deferred tax liabilities	Beginning balance	Recognized in profit or loss	Recognized in other comprehensive income	Ending balance
	$65,198 146 3,414 26,687 8,109 229 (37,903) (34,170)	$(1,437) - 31,855 (2,078) - - (17,480) -	$- - - - (4,242) - - -	$63,761 146 35,269 24,609 3,867 229 (55,383) (34,170)
		$10,860	$(4,242)
	$31,710			$38,328
	$103,783			$127,881
	$(72,073)			$(89,553)

(d) The assessment of income tax returns

As of December 31, 2021, the assessment of the income tax returns of the Company is as follows:

The assessment of income tax returns The Company Assessed and approved up to 2019

(23) Earnings per share

Basic earnings per share is calculated by dividing net profit for the year attributable to ordinary equity owners of the Company by the weighted average number of ordinary shares outstanding during the year.

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Diluted earnings per share is calculated by dividing the net profit attributable to ordinary equity owners of the Company by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

(a) Basic earnings per share Net income Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands) Basic earnings per share (NT$) (b) Diluted earnings per share Net income Net income after dilution (in thousand NT$) Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands) Effect of dilution: Employee compensation－stock (in thousands) Weighted average number of ordinary shares outstanding after dilution (in thousands) Diluted earnings per share (NT$)	For theyears ended December 31,	For theyears ended December 31,
	2021	2020
	$(88,618)	$2,608
	366,923	366,923
	$(0.24)	$0.01
	$(88,618)	$2,608
	$(88,618)	$2,608
	366,923 -	366,923 1
	366,923	366,924
	$(0.24)	$0.01

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of the financial statements were authorized for issue.

7. Related party transactions

(1) Name and nature of relationship of the related parties

Information of the related parties that had transactions with the Company during the financial reporting period is as follows:

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Name of the relatedparties

Nature of relationshipof the relatedparties

Ambassador Premium Food Co., Ltd. Benz Investment Ltd. Custom Investment Ltd. Ambassador Investment Ltd. Ambassador Bakery Corp. Ltd. Ambassador Real Estate Development Co. Ambassador Apartment Building Management and Maintenance Services Co., Ltd Ambassador Property Management Co., Ltd. Custom Human Resources Management Ltd. Shihlin Electric & Engineering Corporation HCT Logistics Co., Ltd. Charter Leisure Co., Ltd. Hsinchu Golf Country Club Co., Ltd. Shihlin Development Company Limited Qun Xin Properties Co., Ltd.

Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Sub-subsidiary Sub-subsidiary Entity with joint control or significant influence over the Company Other related party Other related party Other related party Other related party Associate

(2) Significant transactions with the related parties

(a) Sales

Subsidiaries Entity with joint control or significant influence over the Company Other related parties Associates Total	For theyears ended December 31	For theyears ended December 31
	2021	2020
	$3,695 26,076 29,580 47	$3,868 20,210 34,814 57
	$59,398	$58,949

The sale price and trade credit terms were determined based on general trading terms.

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

(b) Purchases

Subsidiaries Ambassador Premium Food Co., Ltd. Others Other related parties Total	For theyears ended December 31, 2021 2020 $157,616 $199,730 231 158 24 55 $157,871 $199,943	For theyears ended December 31, 2021 2020 $157,616 $199,730 231 158 24 55 $157,871 $199,943
		2020
	$157,616 231 24	$199,730 158 55
	$157,871	$199,943

The purchase price to the above related parties were similar to those purchased from third party suppliers.

(c) Accounts receivable, net

Subsidiaries Entity with joint control or significant influence over the Company Other related parties Associates Total	As of December 31,	As of December 31,
	2021	2020
	$740 3,675 3,365 8	$820 4,336 3,600 6
	$7,788	$8,762

The outstanding receivables from a joint operating aggreement with Charter Leisure Co., Ltd. in amount of NT$0 thousand and NT$4,866 thousand, as of December 31, 2021 and 2020, respectively, are the sales generated from the agreement less the operating expenses. Please refer to Note7 (3) for more details.

(d) Other receivable

Associates	As of December 31,	As of December 31,
	2021	2020
	$12	$-

(e) Lease - related parties

A. Right-of-use assets

Other related parties HCT Logistics Co., Ltd.	As of December 31, 2021 2020 $50,099 $53,930	As of December 31, 2021 2020 $50,099 $53,930
		2020
	$50,099	$53,930

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

B. Lease liabilities Other related parties HCT Logistics Co., Ltd. C. Interest expenses Other related parties HCT Logistics Co., Ltd. (f) Refundable deposits Other related parties (g) Accounts payable Subsidiaries Ambassador Premium Food Co., Ltd. Others Entity with joint control or significant influence over the Company Total (h) Other payables Subsidiaries Entity with joint control or significant influence over the Company Other related parties Associates Total (i) Wage expenditure Subsidiaries Ambassador Property Management Co., Ltd. Ambassador Apartment Building Management and Maintenance Services Co., Ltd Total	As of December31,	As of December31,
	2021	2020
	$45,337	$50,099
	2021	2020
	$1,526 2,095	$4,863 -
	$3,621	$4,863

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

(j) Operating expenses

Subsidiaries Entity with joint control or significant influence over the Company Other related parties Associates Total	For theyears ended December 31,	For theyears ended December 31,
	2021	2020
	$16,131 148 7,861 -	$9,354 234 6,225 4
	$24,140	$15,817

(k) Property transaction

Purchase the property, plant and equipment： Entity with joint control or significant influence over the Company Shihlin Electric & Engineering Corporation	For theyears ended December 31, 2021 2020 $1,594 $3,585	For theyears ended December 31, 2021 2020 $1,594 $3,585
		2020 $3,585
	$1,594

(l) Key management personnel compensation

Short-term employee benefits Post-employment benefits Total	For theyears ended December 31,	For theyears ended December 31,
	2021	2020
	$47,675 955	$53,421 1,062
	$48,630	$54,483

(3) The agreements with related parties are as follows ：

(a) Lease

Since January 1, 1997, the Company leased the Land Lot No.567-2 of Central Section, Hsinchu City (approximately 595 pings) from HCT Logistics Co., Ltd. for developing the hotel and department store. The lease agreement will terminate untill December 31, 2030. At the end of the lease term, the Company has the right to apply for extension and bargain renewal options.

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

During the lease period, the Company has the right to require HCT Logistics Co., Ltd. to apply for the registration of superficies. The term of such acquired superficies is from June 2000 to June 2035. The Company pays the rental fee amounted NT$1,500 thousand to HCT Logistics Co., Ltd. before the date of registration of the superficies and adjusted based on the Wholesale Price Index every five years.

(b) Resturant joint operating agreement

The Company entered into a resturant joint operating agreement with Charter Leisure Co., Ltd. The agreement will terminate untill December 31, 2021. Charter Leisure Co., Ltd. provides the operating site located at Landmark Club. The Company provides sales of goods and rendering of services. Charter Leisure Co., Ltd. is responsible for making collections of resturant sales and claims agent fee based on sales of current month. At the end of each year, the agent fee is adjusted based on annual sales and annual rate according to the agreement between both parties.

8. Assets pledged as security

The following table lists assets of the Company pledged as security:

Items	Carryingamount	Carryingamount	Secured liabilities
	December 31, 2021	December 31, 2020
Financial assets measured at amortized cost, non-current Demand deposits Property, plant and equipment: Building for operation and administration in Hsinchu Building for operation in Kaohsiung Building for operation and administration in Taipei Subtotal Total	$15,930 3,303,862 534,118 1,036,918	$15,930 3,244,736 577,940 936,381	Loans Loans and bank performance guarantee Loans Loans
	4,874,898	4,759,057
	$4,890,828	$4,774,987

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

9. Significant contingencies and unrecognized contractual commitments

• (1) The Company signed a lease agreement with HCT Logistics Co., Ltd. Please refer to Note 7 (3) for more detils.

• (2) The Company signed a restaurant joint operating agreement with Charter Leisure Co., Ltd. Please refer to Note 7 (3) for more detils.

• (3) The Company entered into several construction contracts and acquisition contracts of property, plant and equipment. As of December 31, 2021 and 2020, these contracts amounted to approximately NT$224,617 thousand and NT$126,393 thousand and the portion of the contracts not yet paid was approximately NT$87,490 thousand and NT$20,321 thousand, respectively.

• (4) The Company entrusted financial institutes to open performance guarantee, mainly related to the operations, amounting to NT$60,792 thousand.

10. Losses due to major disasters

None.

11. Significant subsequent events

None.

12. Others

• (1) Categories of financial instruments

Financial assets

Financial assets at fair value through profit or loss: Mandatorily measured at Fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets measured at amortized cost (Note) Total	December 31, 2021	December 31, 2020
	$718,570 5,925,033 351,736	$676,518 3,114,245 276,913
	$6,995,339	$4,067,676

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Financial liabilities

Financial liabilities measured at amortized cost: Short-term loans Short-term bills payables Payables (other payables included) Lease liabilities Long-term loans (current portion included) Total	December 31, 2021	December 31, 2020
	$2,870,000 400,000 501,136 940,083 113,333	$920,000 - 603,834 63,699 120,000
	$4,824,552	$1,707,533

Note: Includes cash and cash equivalents, financial assets measured at amortized cost, notes receivables, accounts receivables and other receivables.

(2) Financial risk management objectives and policies

The Company’s principal financial risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activates. The Company identifies measures and manages the aforementioned risks based on the Company’s policy and risk appetite.

The Company has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant transactions, due approval process by the Board of Directors and Audit Committee must be carried out based on related protocols and internal control procedures. The Company complies with its financial risk management policies at all times.

(3) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market prices comprise currency risk, interest rate risk and other price risk (such as equity risk).

In practice, it is rarely the case that a single risk variable will change independently from other risk variable, there is usually interdependencies between risk variables. However, the sensitivity analysis disclosed below does not take into account the interdependencies between risk variables.

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s investments at variable interest rates, loans with fixed interest rates and variable interest rates.

The interest rate sensitivity analysis is performed on items exposed to interest rate risk as at the end of the reporting period, including loans with variable interest rates. At the reporting date, a change of 10 basis points of interest rate in a reporting period could cause the profit for the years ended December 31, 2021 and 2020 to decrease/increase by NT$3,383 thousand and NT$1,040 thousand, respectively.

Equity price risk

The fair value of the Company’s listed and unlisted equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company’s listed and unlisted equity securities are classified under financial assets measured at fair value through profit or loss and financial assets measured at fair value through other comprehensive income. The Company manages the equity price risk through diversification and placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Company’s senior management on a regular basis. The Company’s Board of Directors reviews and approves all equity investment decisions.

A change of 1% in the price of the listed and unlisted equity securities measured at fair value through profit or loss could increase/decrease the Company’s profit for the years ended December 31, 2021 and 2020 by NT$7,186 thousand and NT$6,765 thousand, respectively.

A change of 1% in the price of the listed companies stocks classified as equity instruments investments measured at fair value through other comprehensive income could have an impact of NT$57,131 thousand and NT$29,451 thousand on the equity attributable to the Company for the years ended December 31, 2021 and 2020, respectively.

Please refer to Note 12 (8) for sensitivity analysis information of other equity instruments or derivatives that are linked to such equity instruments whose fair value measurement is categorized under Level 3.

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

(4) Credit risk management

Credit risk is the risk that a counterparty will not meet its obligations under a contract, leading to a financial loss. The Company is exposed to credit risk from operating activities (primarily for accounts and notes receivables) and financing activities (primarily for bank deposits and other financial instruments).

The Company transactes with a large number of customers. The credit concentration risk of receivables is insignificant.

Credit risk from balances with banks and other financial instruments is managed by the Company’s treasury in accordance with the Company’s policy. The Company only transacts with counterparties approved by the internal control procedures, which are banks and financial institutions, companies and government entities with good credit rating. Consequently, there is no significant credit risk for these counter parties.

(5) Liquidity risk management

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of cash and cash equivalents, highly liquid equity investments and bank loans, etc. The table below summarizes the maturity profile of the Company’s financial liabilities based on the contractual undiscounted payments and contractual maturity. The payment amount includes the contractual interest. The undiscounted payment relating to borrowings with variable interest rates is extrapolated based on the estimated interest rate yield curve as of the end of the reporting period.

Non-derivative financial liabilities

Non-derivative financial liabilities
As of December 31, 2021 Short-term loans Short-term bills payables Payables (other payables included) Lease liabilities (Note) Long-term loans As of December 31, 2020 Short-term loans Payables (other payables included) Lease liabilities (Note) Long-term loans	Less than 1year	1 to 5years	> 5years	Total
	$2,872,203 400,058 501,136 58,842 13,446 $920,381 603,834 13,500 100,130	$- - - 276,039 101,080 $- - 24,842 20,355	$- - - 686,649 - $- - 26,490 -	$2,872,203 400,058 501,136 1,021,530 114,526 $920,381 603,834 64,832 120,485

Note: Includes cash flows resulted from short-term leases or leases of low-value assets.

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Derivative financial liabilities

The Company does not hold any derivative financial instruments.

• (6) Reconciliation of liabilities arising from financing activities

Reconciliation of liabilities for the year ended December 31, 2021:

As of December 31, 2020 Cash flows Non-cash changes As of December 31, 2021	Short-term loans	Short-term bills payables	Long-term loans	Leases liabilities	Total liabilities from financing activities
	$920,000 1,950,000 -	$- 400,000 -	$120,000 (6,667) -	$63,699 (15,162) 891,546	$1,103,699 2,728,171 891,546
	$2,870,000	$400,000	$113,333	$940,083	$4,723,416

Reconciliation of liabilities for the year ended December 31, 2020:

As of December 31, 2019 Cash flows Non-cash changes As of December 31, 2020	Short-term borrowings	Long-term borrowings	Leases liabilities	Total liabilities from financing activities
	$220,000 700,000 -	$131,000 (11,000) -	$26,220 (17,095) 54,574	$377,220 671,905 54,574
	$920,000	$120,000	$63,699	$1,103,699

• (7) Fair values of financial instruments

• (a) The methods and assumptions applied in determining the fair value of financial instruments:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used by the Company to measure or disclose the fair values of financial assets and financial liabilities:

• A. The carrying amount of cash and cash equivalents, receivables (including other receivables), payables (including other payables) approximate their fair value due to their short maturities.

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese

THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

• B. For financial assets and liabilities traded in an active market with standard terms and conditions, their fair value is determined based on market quotation price (including listed equity securities, beneficiary certificates, bonds and futures, etc.) at the reporting date.

• C. Fair value of equity instruments without market quotations (including private placement of listed equity securities, unquoted public company and private company equity securities) are estimated using the market method valuation techniques based on parameters such as prices based on market transactions of equity instruments of identical or comparable entities and other relevant information (for example, inputs such as discount for lack of marketability, P/E ratio of similar entities and Price-Book ratio of similar entities).

• D. Fair value of debt instruments without market quotations and bank loans are determined based on the counterparty prices or valuation method. The valuation method uses DCF method as a basis, and the assumptions such as the interest rate and discount rate are primarily based on relevant information of similar instrument (such as yield curves published by the GreTai Securities Market, average prices for Fixed Rate Commercial Paper published by Reuters and credit risk, etc.)

• (b) Fair value of financial instruments measured at amortized cost

The carrying amount of the Company’s financial assets and liabilities measured at amortized cost approximate their fair value.

(c) Fair value measurement hierarchy for financial instruments

Please refer to Note 12 (8) for fair value measurement hierarchy for financial instruments of the Company.

• (8) Fair value measurement hierarchy

• (a) Fair value measurement hierarchy

All asset and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement as a whole. Level 1, 2 and 3 inputs are described as follows:

• Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date

• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly

• Level 3 – Unobservable inputs for the asset or liability

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorization at the end of each reporting period.

(b) Fair value measurement hierarchy of the Company’s assets and liabilities

The Company does not have assets that are measured at fair value on a non-recurring basis. Fair value measurement hierarchy of the Company’s assets and liabilities measured at fair value on a recurring basis is as follows:

As of December 31, 2021

Assets measured at fair value: Financial assets at fair value through profit or loss Offshore funds Financial assets at fair value through other comprehensive income Equity instruments measured at fair value through other comprehensive income As of December 31, 2020 Assets measured at fair value: Financial assets at fair value through profit or loss Offshore funds Financial assets at fair value through other comprehensive income Equity instruments measured at fair value through other comprehensive income	Level 1	Level 2	Level 3	Total
	$- 5,713,087 Level 1	$718,570 - Level 2	$- 211,946 Level 3	$718,570 5,925,033 Total
	$- 2,945,080	$676,518 -	$- 169,165	$676,518 3,114,245

As of December 31, 2020

Transfers between Level 1 and Level 2 during the period

During the years ended December 31, 2021 and 2020, there were no transfers between Level 1 and Level 2 fair value measurements.

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NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

The detail movement of recurring fair value measurements in Level 3:

Reconciliation for recurring fair value measurements in Level 3 of the fair value hierarchy during the period is as follows:

hierarchy during the period is as follows:
As of January 1, 2021 Total gains (losses) recognized for the year ended December 31, 2021: Amount recognized in OCI (presented in “Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income”) Acquisition for the year ended December 31, 2021 Disposal for the year ended December 31, 2021 As of December 31, 2021 As of January 1, 2020 Total gains (losses) recognized for the year ended December 31, 2020: Amount recognized in OCI (presented in “Unrealized gains or losses from equity instruments investments measured at fair value through other comprehensive income”) Disposal for the year ended December 31, 2020 As of December 31, 2020	Equitysecurities
	$169,165 12,289 30,492 -
	$211,946
	$190,452 (17,944) (3,343)
	$169,165

Information on significant unobservable inputs to valuation

Description of significant unobservable inputs to valuation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy is as follows:

As of December 31, 2021

Valuation techniques Significant unobservable inputs Quantitative information Relationship between inputs and fair value Financial assets: Financial assets at fair value through other comprehensive income Stocks Market approach discount for lack of marketability 10% The higher the discount for lack of marketability, the lower the fair value of the stocks	Valuation techniques	Significant unobservable inputs	Quantitative information	Relationship between inputs and fair value	Sensitivity analysis of relationship between inputs and fair value
					1% increase (decrease) in the discount for lack of marketability would result in increase (decrease) in the Company’s equity by NT$2,119 thousand

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English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

As of December 31, 2020

Valuation techniques Significant unobservable inputs Quantitative information Relationship between inputs and fair value Financial assets: Financial assets at fair value through other comprehensive income Stocks Market approach discount for lack of marketability 10% The higher the discount for lack of marketability, the lower the fair value of the stocks	Valuation techniques	Significant unobservable inputs	Quantitative information	Relationship between inputs and fair value	Sensitivity analysis of relationship between inputs and fair value
					1% increase (decrease) in the discount for lack of marketability would result in increase (decrease) in the Company’s equity by NT$1,692 thousand

Valuation process used for fair value measurements categorized within Level 3 of the fair value hierarchy

The Company’s Finance Department is responsible for validating the fair value measurements and ensuring that the results of the valuation are in line with market conditions, based on independent and reliable inputs which are consistent with other information, and represent exercisable prices. The Department analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Company’s accounting policies at each reporting date to ensure the measurement or assessment are reasonable.

• (c) Fair value measurement hierarchy of the Company’s assets and liabilities not measured at fair value but for which the fair value is disclosed

As of December 31, 2021:

Investment properties (Note) As of December 31, 2020: Investment properties (Note)	Level 1	Level 2	Level 3	Total
	$- Level 1	$- Level 2	$104,266 Level 3	$104,266 Total
	$-	$-	$104,266	$104,266

Note: Please refer to Note 6 (10).

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NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

(9) Capital management

The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust dividend payment to shareholders, return capital to shareholders or issue new shares.

13. Additional disclosures

(1) Information at significant transactions

No.	Items	Attachments
1	Financing provided to others	None
2	Endorsement/Guaranteeprovided to others	None
3	Securities held as of December 31, 2021 (excluding investments in subsidiaries,associates andjoint ventures)	Attachment 1
4	Individual securities acquired or disposed of with accumulated amount exceedingthe lower of NT$300 million or 20percent of the capital stock	Attachment 2
5	Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20percent of capital stock	None
6	Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20percent of capital stock	None
7	Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20percent of capital stock	Attachment 3
8	Receivables from related parties with amounts exceeding the lower of NT$100 million or 20percent of capital stock	None
9	Financial instruments and derivative transactions	None
10	Others: business relationships and significant transactions between parent companyand subsidiaryand amongsubsidiaries	Attachment 4

77

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

• (2) Information on investees

Relevant information of investees over which the Company has direct or indirect control:

No.	Items	Attachments
1	Financing provided to others	None
2	Endorsement/Guaranteeprovided to others	None
3	Securities held as of December 31, 2021 (excluding investments in subsidiaries,associates andjoint ventures)	Attachment 1
4	Individual securities acquired or disposed of with accumulated amount exceedingthe lower of NT$300 million or 20percent of the capital stock	Attachment 2
5	Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20percent of capital stock	None
6	Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20percent of capital stock	None
7	Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20percent of capital stock	Attachment 3
8	Receivables from related parties with amounts exceeding the lower of NT$100 million or 20percent of capital stock	None
9	Financial instruments and derivative transactions	None
10	Name, location and related information of investee	Attachment 5

• (3) Information on investments in mainland China

None.

• (4) Information on major shareholders

Refer to Attachment 6.

78

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese

THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Attachment 1: Securities held as of December 31, 2021 (excluding investments in subsidiaries, associates and joint ventures)

Held Company Name	Type and Name of Securities	Relationship	Financial Statement Account	Ending Balance	Ending Balance	Ending Balance	Ending Balance	Note (Note 2)
				Units/Shares	Carrying Amount (Note 1)	Percentage of Ownership (%)	Fair Value
The Ambassador Hotel Co., Ltd.	Listed Stock/Shihlin Electric & Engineering Corporation	Same chairman/Entity with significant influence over the Company	Financial assets at fair value through other comprehensive income, current	44,285,175	$2,386,971	8.50	$2,386,971
	Listed Stock/CTBC Financial Holding Co.,Ltd.	-	Financial assets at fair value through other comprehensive income, current	119,948,000	3,112,651	0.60	3,112,651
	Listed Stock/Cathay Financial Holding Co.,Ltd.	-	Financial assets at fair value through other comprehensive income, current	1,218,000	76,125	0.01	76,125
	Listed Stock/Fubon Financial Holding Co., Ltd.	-	Financial assets at fair value through other comprehensive income, current	1,800,000	137,340	0.01	137,340
	Beneficiary Certificate/Genesis Capital Appreciation Fund	-	Financial assets at fair value through profit or loss, non-current	293,968	186,084	-	186,084
	Beneficiary Certificate/Asian Value Fund	-	Financial assets at fair value through profit or loss, non-current	293,968	212,940	-	212,940
	Beneficiary Certificate/Ivy Sun Moon Fund	-	Financial assets at fair value through profit or loss, non-current	291,192	191,387	-	191,387
	Beneficiary Certificate/Caesar Balance Income Fund	-	Financial assets at fair value through profit or loss, non-current	297,072	128,159	-	128,159
	Stock/Cheng Der Investment Corp.	-	Financial assets at fair value through other comprehensive income, non-current	2,600,000	47,918	8.70	47,918
	Stock/Charter Leisure Co., Ltd.	Chairman of the company is a key management personnel of the Company	Financial assets at fair value through other comprehensive income, non-current	900,000	8,622	18.00	8,622
	Stock/Taiwan Creative Industry Development Co., Ltd.	-	Financial assets at fair value through other comprehensive income, non-current	2,500,000	34,825	12.50	34,825
	Stock/BaiNian International Technology Co., Ltd.	-	Financial assets at fair value through other comprehensive income, non-current	1,146	-	7.54	-
	Stock/Hsinchu Golf Country Club Co., Ltd.	Same chairman	Financial assets at fair value through other comprehensive income, non-current	13	52,650	1.53	52,650
	Stock/The Orient Linko Golf & Country Club	-	Financial assets at fair value through other comprehensive income, non-current	4	37,600	0.40	37,600
	Stock/Global Securities Finance Corporation	-	Financial assets at fair value through other comprehensive income, non-current	16,318	163	0.09	163
	Stock/Qun Xin Properties Co., Ltd.	-	Financial assets at fair value through other comprehensive income, non-current	3,600,000	30,168	12.41	30,168
Custom Investment Ltd.	Listed Stock/Shihlin Electric & Engineering Corporation	Same chairman/Entity with significant influence over the Company	Financial assets at fair value through other comprehensive income, current	3,730,000	201,046	0.72	201,046
	Stock/Chang Hong Investment Corp.	-	Financial assets at fair value through other comprehensive income, non-current	9,000,000	102,595	15.79	102,595
	Stock/Xin He Investment Corp.	-	Financial assets at fair value through other comprehensive income, non-current	4,000,000	44,168	5.95	44,168
Ambassador Investment Ltd.	Listed Stock/Shihlin Electric & Engineering Corporation	Same chairman/Entity with significant influence over the Company	Financial assets at fair value through other comprehensive income, current	7,047,000	379,833	1.35	379,833
	Listed Stock/Shihlin Development Company Limited	Director of the company is a key management personnel of the Company	Financial assets at fair value through other comprehensive income, current	5,781,850	55,390	2.55	55,390
	Stock/Asia Pacific Technology–3	-	Financial assets at fair value through other comprehensive income, non-current	700	-	1.67	-
	Stock/Charter Leisure Co., Ltd.	Chairman of the company is a key management personnel of the Company	Financial assets at fair value through other comprehensive income, non-current	83,333	781	1.67	781
Benz Investment Ltd.	Listed Stock/Shihlin Electric & Engineering Corporation	Same chairman/Entity with significant influence over the Company	Financial assets at fair value through other comprehensive income, current	10,083,000	543,474	1.94	543,474
	Listed Stock/Shihlin Development Company Limited	Director of the company is a key management personnel of the Company	Financial assets at fair value through other comprehensive income, current	5,207,066	49,884	2.30	49,884
	Stock/Asia Pacific Technology–2	-	Financial assets at fair value through other comprehensive income, non-current	268,250	-	2.30	-
	Stock/Cheng Der Investment Corp.	-	Financial assets at fair value through other comprehensive income, non-current	2,668,000	49,171	8.92	49,171

Note 1: For financial assets measured at fair value, the carrying amount should be the fair value deducted by the accumulated impairment loss. For financial assets not measured at fair value, the carrying amount should be the original cost or amortized cost deducted by the accumulated impairment loss. Note 2: If securities are restricted because of being used as collaterals, being pledged or other reasons, such restriction should be disclosed.

79

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese THE AMBASSADOR HOTEL CO., LTD. NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Attachment 2: Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20 percent of the capital stock

Company Name	Type and Name of Securities (Note 1)	Financial Statement Account	Counter-Party (Note 2)	Relationship (Note 2)	Beginning Balance	Beginning Balance	Acquisition	Acquisition	Disposal	Disposal	Disposal	Disposal	Ending Balance	Ending Balance	Note
					Shares	Amount	Shares	Amount	Shares	Amount	Carrying amount	Gains (Losses)	Shares	Amount
The Ambassador Hotel Co., Ltd.	CTBC Financial Holding Co., Ltd.	Financial assets at fair value through other comprehensive income, current	-	-	33,000,000	$614,041	86,948,000	$1,968,116	-	-	-	-	119,948,000	$2,582,157

Note 1: Securities are stocks, bonds, beneficiary certificates and securities derived from the aforementioned items within the scope of IFRS 9 Financial Instruments. Note 2: Only securities accounted for using the equity method are required to disclose such information.

80

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese

THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Attachment 3: Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million or 20 percent of capital stock

Company Name	Counter-party	Relationship	Transaction Details	Transaction Details	Transaction Details	Transaction Details	Details of Abnormal Transaction	Details of Abnormal Transaction	Notes/Accounts Receivables (Payables)	Notes/Accounts Receivables (Payables)	Note
			Purchases (Sales)	Amount	Percentage of Total Purchases (Sales)(%)	Payment Term	Unit price	Payment Term	Ending Balance	Percentage of Total Notes/Accounts Receivables(Payables)(%)
The Ambassador Hotel Co., Ltd.	Ambassador Premium Food Co., Ltd.	Subsidiary	Purchases	$157,616	27.82	30 days	NA	NA	$(18,339)	16.54	Note 1
Ambassador Premium Food Co., Ltd.	The Ambassador Hotel Co., Ltd.	Parent Company	Sales	(157,616)	100.00	30 days	NA	NA	18,339	100.00	Note 1

Note 1: The amount was written-off in the consolidated financial statements

81

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese

THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Attachment 4: business relationships and significant transactions between parent company and subsidiary

Number (Note 1)	Company Name	Counter-Party	Relationship (Note 2)	Intercompany Transactions	Intercompany Transactions	Intercompany Transactions	Intercompany Transactions
				Financial Statement Account	Amount	Payment Term	Percentage of Total Sales or Assets(Note 3)
0	The Ambassador Hotel Co., Ltd.	Ambassador Premium Food Co., Ltd.	1	Food and beverage costs	$157,616	Equivalent to general conditions	10.38%

Note 1: The parent company and its subsidiaries do business with each other. Information shall be stated separately and numbered are as follows:

1. The parent company is 0.

2. Subsidiaries, sequentially numbered by Arabic numerals from 1.

Note 2: The related parties have the following three relationships:

1. Parent company to subsidiary.

2. Subsidiary to parent company.

3. Subsidiary to subsidiary.

Note 3: Amounts of balance sheet accounts are calculated as percentage of consolidated total assets; amounts of income statement accounts are calculated as percentage of consolidated total revenues.

Note 4: Individual transaction amounts less than $10 million will not be disclosed; instead they will be disclosed as other assets or liabilities and income or expense , while the relative transactions will not be disclosed.

82

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese

THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Attachment 5: Name, location and related information of investee (excluding investees in Mainland China)

Investor Company	Investee Company	Location	Main Businesses	Oringnal Investment Amount	Oringnal Investment Amount	Balance as of December 31, 2021	Balance as of December 31, 2021	Balance as of December 31, 2021	Net Income (Loss) of Investee	Investment Income (Loss) Recognized	Note
				Ending balance	Beginning balance	Shares	Percentage of Ownership	Carrying Amount
The Ambassador Hotel Co., Ltd.	Ambassador Premium Food Co., Ltd.	Republic of China	Wholesale of aquatic products, foods and groceries, etc.	$48,700	$48,700	4,870,000	100.00%	$56,538	$1,080	$1,080	Note 1
	Benz Investment Ltd.	Republic of China	General investing	507,988	427,988	50,798,841	99.99%	1,094,137	18,792	18,792	Note 1
	Custom Investment Ltd.	Republic of China	General investing	734,989	734,989	73,498,924	99.99%	1,181,170	12,042	12,042	Note 1
	Ambassador Investment Ltd.	Republic of China	General investing	480,989	480,989	48,098,939	99.99%	819,769	14,211	14,211	Note 1
	Qun Xin Properties Co., Ltd.	Republic of China	Hotels and motels	-	90,000	-	-	-	(109,766)	(28,118)	Note 2、3
	Cheng Der Investment Corp.	Republic of China	General investing	84,168	84,168	8,416,775	27.06%	137,747	6,859	1,856	Note 1
	Yu Der Investment Corp.	Republic of China	General investing	121,270	121,270	12,127,000	22.50%	126,863	1,224	276	Note 1
	Yeangder Safety Management Consulting Co., Ltd.	Republic of China	Investment consultancy	1,000	1,000	100,000	10.00%	880	(50)	(5)	Note 1
	Ambassador Bakery Corp. Ltd.	Republic of China	Bakery food manufacturing	6,000	6,000	600,000	60.00%	6,932	1,086	652	Note 2
	Ambassador Real Estate Development Co.	Republic of China	Real estate development and leasing	5,000	5,000	500,000	100.00%	5,435	135	135	Note 2
	Ambassador Property Management and Maintenance Co.,Ltd	Republic of China	Building Management and Maintenance Services	10,000	-	1,000,000	100.00%	9,317	(684)	(684)	Note 1
Custom Investment Ltd.	Ambassador Property Management Co., Ltd.	Republic of China	Residence and buildings cleaning service	10,000	10,000	1,000,000	100.00%	18,039	1	1	Note 1
	Custom Human Resources Management Ltd.	Republic of China	Manpower services and consultancy	1,000	1,000	100,000	100.00%	17,591	6	6	Note 2
	De Hong Investment Corp.	Republic of China	General investing	250,000	250,000	25,000,000	16.03%	357,587	16,973	2,708	Note 1
	Yu Hong Investment Corp.	Republic of China	General investing	310,000	310,000	31,000,000	16.40%	392,565	23,263	3,933	Note 1
	Cheng Der Investment Corp.	Republic of China	General investing	14,000	14,000	1,400,000	4.50%	22,907	6,859	309	Note 1
Ambassador Investment Ltd.	Yu Hong Investment Corp.	Republic of China	General investing	150,000	150,000	15,000,000	7.94%	190,059	23,263	1,904	Note 1
	De Hong Investment Corp.	Republic of China	General investing	105,000	105,000	10,500,000	6.73%	150,129	16,973	1,137	Note 1
	Cheng Der Investment Corp.	Republic of China	General investing	6,000	6,000	600,000	1.93%	9,825	6,859	131	Note 1
	Yu Der Investment Corp.	Republic of China	General investing	7,000	7,000	700,000	1.30%	7,330	1,224	16	Note 1
Benz Investment Ltd.	Yu Der Investment Corp.	Republic of China	General investing	73,000	73,000	7,300,000	13.54%	76,342	1,224	166	Note 1
	De Hong Investment Corp.	Republic of China	General investing	135,000	95,000	13,500,000	8.65%	192,959	16,973	1,487	Note 1
	Yu Hong Investment Corp.	Republic of China	General investing	120,000	80,000	12,000,000	6.35%	151,999	23,263	1,282	Note 1

Note1: Recognized in audited financial statements.

Note2: Recognized in unaudited financial statements.

Note3: On October 29, 2021, the Company elected not to participate in the share capital increase of Qun Xin Properties Co., Ltd, the percentage of ownership is decrease from 25.71% to 12.41% lend to reclassify from investments accounted for using the equity method to FVOCI-non current.

83

English Translation of Finacial Statements and Footnotes Originally Issued in Chinese

THE AMBASSADOR HOTEL CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

(Expressed in thousands of New Taiwan Dollars unless Otherwise Specified)

Attachment 6: Information on major shareholders

Shares Name of Major Shareholder	Number of Shares	Percentage of Ownership
Shihlin Electric& Engineering Corporation	66,918,617	18.23%
HCT Logistics Co., Ltd.	28,157,000	7.67%
De Hong Investment Corp.	25,217,000	6.87%
Xin He Investment Corp.	23,704,000	6.46%
Jine De Sheng Co., Ltd.	20,512,000	5.59%
Yu Hong Investment Corp.	19,684,000	5.36%

• (1) 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 Company as of the last business day for the current quarter. The share capital in the consolidated financial statements

• may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

• (2) If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by the individual truster who opened the trust account.

• For shareholders who declare insider shareholdings with ownership greater than 10% in accordance with the Security and Exchange Act, the shareholdings

• include shares held by shareholders and those delivered to the trust over which shareholders have rights to determine the use of trust property.

• For information relating to insider shareholding declaration, please refer to Market Observation Post System.

84

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS
	Index
Major Accounting Items In Assets, Liabilities And Equity：
Statement of cash and cash equivalents	1
Statement of financial assets at fair value through other comprehensive income, current	2
Statement of notes receivable, net	3
Statement of accounts receivable, net	4
Statement of other receivables	5
Statement of inventories	6
Statement of prepayments	7
Statement of other current assets	8
Statement of changes in financial assets at fair value through profit or loss, non-current	9
Statement of changes in financial assets at fair value through other comprehensive income, non-current	10
Statement of financial assets at amortised cost, non-current	11
Statement of changes in investments accounted for using equity method	12
Statement of changes in property, plant and equipment	Note 6(9)
Statement of changes in accumulated depreciation of property, plant and equipment	Note 6(9)
Statement of changes in investment property	Note 6(10)
Statement of changes in accumulated depreciation of investment property	Note 6(10)
Statement of deferred tax assets	Note 6(22)
Statement of other non-current assets	13
Statement of short-term loans	Note 6(11、12)
Statement of notes payable	14
Statement of accounts payable	15
Statement of other payables	Note 6(13)
Statement of other current liabilities	16
Statement of long-term loans	17
Statement of deferred tax liabilities	Note 6(22)
Statement of net defined benefit liabilities, non-current	Note 6(15)
Statement of other non-current liabilities - others	18
Major Accounting Items In Profit Or Loss:
Statement of operating revenue	Note 6(17)
Statement of operating costs	19
Statement of operating expenses	20
Statement of finance costs	Note 6(20)
Statement of employee benefits, depreciation and amortization by function	Note 6(19)

85

THE AMBASSADOR HOTEL CO., LTD.

1. Statement of cash and cash equivalents

December 31, 2021

(In Thousands of New Taiwan Dollars)

Contents	Description		Amount	Note
Cash Bank deposits Cash equivalents Total	Cash on hand Petty cash Demand deposits Checking accounts Stimulus voucher Commercial paper (Expiration date 2021/12/30~2022/01/03, interest rate at 0.25%)		$5,342 2,531 75,910 23,936 633 190,060 $298,412

86

THE AMBASSADOR HOTEL CO., LTD.

1. Statement of financial assets at fair value through other comprehensive income, current

December 31, 2021

(In Thousands of New Taiwan Dollars)

Name of Securities	Description	Shares	Par Value (NTD)	Amount	Interest Rate	Acquisition Cost	Accumulated Impairment	Fair Value	Fair Value	Note
								Unit Price (NTD)	Amount
Shihlin Electric & Engineering Corporation CTBC Financial Holding Co.,Ltd. Cathay Financial Holding Co.,Ltd. Fubon Financial Holding Co., Ltd. Valuation adjustments Total	Stock Stock Stock Stock	44,285,175 119,948,000 1,218,000 1,800,000	$10 10 10 10	$1,421,604 2,582,157 73,361 134,986 1,500,979 $5,713,087	None None	$1,421,604 2,582,157 73,361 134,986 $4,212,108	$- - - - $-	$53.90 25.95 62.50 76.30	$2,386,971 3,112,651 76,125 137,340 $5,713,087

87

THE AMBASSADOR HOTEL CO., LTD.

3. Statement of notes receivable, net

December 31, 2021

(In Thousands of New Taiwan Dollars)

Client Name	Description	Amount	Note
Third parties JTB Others Subtotal Less: loss allowance Net		$160 7 167 (160) $7	The amount of individual client in others does not exceed 5% of the account balance.

88

THE AMBASSADOR HOTEL CO., LTD.

4. Statement of accounts receivable, net

December 31, 2021

(In Thousands of New Taiwan Dollars)

Client Name	Description	Amount	Note
Related parties: Shihlin Electric & Engineering Corporation HCT Logistics Co., Ltd. Qun Xin Properties Co., Ltd. Hsinchu Golf Country Club Co., Ltd. Ambassador Bakery Corp. Ltd. Subtotal Third parties: National Credit Card Center of R.O.C. Others Subtotal Total Less: loss allowance Net		$3,675 3,364 8 1 740 7,788 8,847 20,776 29,623 37,411 (1,488) $35,923	The amount of individual client in others does not exceed 5% of the account balance.

89

THE AMBASSADOR HOTEL CO., LTD.

5. Statement of other receivables

December 31, 2021

(In Thousands of New Taiwan Dollars)

Contents	Description		Amount	Note
Income tax refund Others Total			$3 1,461 $1,464

90

THE AMBASSADOR HOTEL CO., LTD.

6. Statement of inventories

December 31, 2021

(In Thousands of New Taiwan Dollars)

			(In Thousands of New	(In Thousands of New	(In Thousands of New	Taiwan Dollars)
Contents	Description		Amount			Note
			Cost		Net Realizable Value
Foods Beverages Cigarettes and others Less: allowance for inventory valuation losses Total	Fresh foods, canned foods, dried foods and seasonings, etc. Wines, domestic liquor, fruit juices and soft drinks, etc. Improted cigarettes, domestic cigarettes and pineapple cakes, etc.		$38,735 38,953 1,108 78,796 - $78,796		$38,735 38,953 1,108 $78,796

91

THE AMBASSADOR HOTEL CO., LTD.

7. Statement of prepayments

December 31, 2021

(In Thousands of New Taiwan Dollars)

Contents	Description	Amount	Note
Inventory of supply Prepaid insurance Other prepayments Others Total	Cotton fabrics, tableware, etc.	$41,247 5,178 20,628 2,008 $69,061	The amount of individual item in others does not exceed 5% of the account balance.

92

THE AMBASSADOR HOTEL CO., LTD.

8. Statement of other current assets

December 31, 2021

(In Thousands of New Taiwan Dollars)

Contents	Description		Amount	Note
Temporary payments Others Total			$807 4,376 $5,183

93

THE AMBASSADOR HOTEL CO., LTD.

1. Statement of changes in financial assets at fair value through profit or loss, non-current

For the year ended December 31, 2021

(In Thousands of New Taiwan Dollars/Shares)

Name of Securities	As of January 1, 2021	As of January 1, 2021	Additions	Additions	Decrease	Decrease	As of December 31, 2021	As of December 31, 2021	Collateral	Note
	Units	Fair Value	Units	Amount	Units	Amount	Units	Fair Value
Beneficiary Certificate: Genesis Capital Appreciation Fund Asian Value Fund Ivy Sun Moon Fund Caesar Balance Income Fund Total	293,968 293,968 291,192 297,072	$174,187 199,323 182,056 120,952 $676,518	- - - -	$11,897 13,617 9,331 7,207 $42,052	- - - -	$- - - - $-	293,968 293,968 291,192 297,072	$186,084 212,940 191,387 128,159 $718,570	None None None None	None None None None

94

THE AMBASSADOR HOTEL CO., LTD.

1. Statement of changes in financial assets at fair value through other comprehensive income, non-current

For the year ended December 31, 2021

(In Thousands of New Taiwan Dollars/Shares)

Name of Securities	As of January 1, 2021	As of January 1, 2021	Additions	Additions	Decrease	Decrease	Adjustments	As of December 31, 2021	As of December 31, 2021	Collateral	Note
	Units/Shares	Fair Value	Units/Shares	Amount	Units/Shares	Amount	Amount	Units/Shares	Fair Value
Unlisted stock: The Orient Linko Golf & Country Club Hsinchu Golf Country Club Co., Ltd. Charter Leisure Co., Ltd. Global Securities Finance Corporation Taiwan Creative Industry Development Co., Ltd. BaiNian International Technology Co., Ltd. Cheng Der Investment Corp. Qun Xin Properties Co., Ltd. Less: accumulated impairment Total	4 13 900,000 16,318 2,500,000 1,146 2,600,000 - -	$33,200 42,250 11,448 163 37,150 1,146 44,954 - (1,146) $169,165	- - - - - - - 3,600,000 -	$- - - - - - - 30,492 - $30,492	- - - - - - - - -	$- - - - - - - - - $-	$4,400 10,400 (2,826) - (2,325) - 2,964 (324) - $12,289	4 13 900,000 16,318 2,500,000 1,146 2,600,000 3,600,000 -	$37,600 52,650 8,622 163 34,825 1,146 47,918 30,168 (1,146) $211,946	None None None None None None None None	None None None None None None None None

95

THE AMBASSADOR HOTEL CO., LTD.

1. Statement of financial assets at amortised cost, non-current

For the year ended December 31, 2021

(In Thousands of New Taiwan Dollars)

Contents	As of January 1, 2021	As of January 1, 2021	Additions	Additions	Decrease	Decrease	As of December 31, 2021	As of December 31, 2021	Collateral	Note
	Units	Carrying Amount	Units	Amount	Units	Amount	Units	Carrying Amount
Demand deposits Total	-	$15,930 $15,930	-	$- $-	-	$- $-	-	$15,930 $15,930	Note 1	None

Note 1: As collateral for bank loans.

96

THE AMBASSADOR HOTEL CO., LTD.

1. Statement of changes in investments accounted for using equity method

For the year ended December 31, 2021

	(In Thousands of New Taiwan Dollars/Shares)	(In Thousands of New Taiwan Dollars/Shares)	(In Thousands of New Taiwan Dollars/Shares)	(In Thousands of New Taiwan Dollars/Shares)	(In Thousands of New Taiwan Dollars/Shares)	(In Thousands of New Taiwan Dollars/Shares)	(In Thousands of New Taiwan Dollars/Shares)	(In Thousands of New Taiwan Dollars/Shares)	(In Thousands of New Taiwan Dollars/Shares)	(In Thousands of New Taiwan Dollars/Shares)	(In Thousands of New Taiwan Dollars/Shares)	(In Thousands of New Taiwan Dollars/Shares)	(In Thousands of New Taiwan Dollars/Shares)
Name of Securities	As of January 1, 2021		Additions		Decrease		As of December 31, 2021			Fair Value/Net Assets Value		Collateral	Note
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	Percentage of Ownership (%)	Amount	Unit Price	Total Amount
Unlisted stocks: Qun Xin Properties Co., Ltd. Ambassador Premium Food Co., Ltd. Ambassador Investment Ltd. Benz Investment Ltd. Custom Investment Ltd. Cheng Der Investment Corp. Yu Der Investment Corp. Yeangder Safety Management Consulting Co., Ltd. Ambassador Bakery Corp. Ltd. Ambassador Real Estate Development Co. Ambassador Property Management and Maintenance Co., Ltd Total	9,000,000 4,870,000 48,098,939 42,798,841 73,498,924 8,416,775 12,127,000 100,000 600,000 500,000 -	$58,953 57,038 803,840 957,533 1,156,903 130,987 123,841 885 7,060 5,300 - $3,302,340	- - - 8,000,000 - - - - - - 1,000,000	$- 1,095 35,801 155,482 52,920 7,426 3,966 397 652 135 10,000 $267,874 (Note 1)	(9,000,000) - - - - - - - - - -	$(58,953) (1,595) (19,873) (18,878) (28,653) (666) (943) (402) (780) - (683) $(131,426) (Note 1)	- 4,870,000 48,098,939 50,798,841 73,498,924 8,416,775 12,127,000 100,000 600,000 500,000 1,000,000	- % 100.00% 100.00% 100.00% 100.00% 27.06% 22.50% 10.00% 60.00% 100.00% 100.00%	$- 56,538 819,769 1,094,137 1,181,170 137,747 126,863 880 6,932 5,435 9,317 $3,438,788	$- - - - - - - - - - -	$- 56,538 819,769 1,094,137 1,181,170 137,747 126,863 880 6,932 5,435 9,317	None None None None None None None None None None None	Note2 None None None None None None None None None None

Note 1: The movements in the current period include: Additions of investment amounted to NT$90,000 thousand, investment income recognized under equity method amounted to NT$20,237 thousand, the impact of dividends received from subsidiaries amounted to NT$(46,859) thousand and the impact of changes in equity recognized under equity method amounted to NT$103,904 thousand.

Note 2: On October 29, 2021, The Company elected not to participate in the share capital increase of Qun Xin Properties Co., Ltd, the percentage of ownership is decrease from 25.71% to 12.41% lend to reclassify from investments accounted for using the equity method to FVOCI-non current.

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THE AMBASSADOR HOTEL CO., LTD.

13. Statement of other non-current assets

December 31, 2021

(In Thousands of New Taiwan Dollars)

Contents	Description		Amount	Note
Refundable deposits Other long-term investments Others Total	Membership deposit, deposits of lease, telephone, empty bottle and gas Club membership fee		$26,182 3,840 16,496 $46,518

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THE AMBASSADOR HOTEL CO., LTD.

14. Statement of notes payable

December 31, 2021

(In Thousands of New Taiwan Dollars)

Client Name	Dscription		Amount	Note
Third parties: Others	Lease payment		$533

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THE AMBASSADOR HOTEL CO., LTD.

15. Satement of accounts payable

December 31, 2021

(In Thousands of New Taiwan Dollars)

Client Name	Description	Amount	Note
Related parties: Ambassador Premium Food Co., Ltd. Ambassador Bakery Corp. Ltd. Subtotal Third parties: Others Subtotal Total		$18,339 73 18,412 78,956 78,956 $97,368	The amount of individual client in others does not exceed 5% of the account balance.

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THE AMBASSADOR HOTEL CO., LTD.

16. Statement of other current liabilities

December 31, 2021

(In Thousands of New Taiwan Dollars)

Contents	Description		Amount	Note
Receipts under custody Temporary receipts Total	Withholding tax of salary, etc. Temporary receipts, etc.		$4,456 7,545 $12,001

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THE AMBASSADOR HOTEL CO., LTD.

17. Statement of long-term loans

December 31, 2021

(In Thousands of New Taiwan Dollars)

Lenders	Type	Amount	Maturity Date	Interest rates	Collateral	Note
Bank of Taiwan The Export-Import Bank of the Republic of China Subtotal Less: current portion Total	Secured loans Unsecured loans	$100,000 13,333 113,333 (13,333) $100,000	2021/2/19~2023/2/19 2019/11/29~2022/11/28	0.95% 0.93%	Real estate and bank deposits None

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THE AMBASSADOR HOTEL CO., LTD.

18. Statement of other non-current liabilities - others

December 31, 2021

(In Thousands of New Taiwan Dollars)

Contents	Description		Amount	Note
Deposits received Total	Membership deposit		$10,364 $10,364

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THE AMBASSADOR HOTEL CO., LTD.

19. Statement of operating costs

For the year ended December 31, 2021

(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Contents	Description		Amount	Note
Inventory, beginning of year Add: inventory purchased others Less: inventory, ending of year Transferred to operating expenses and others Food and beverage costs during the period Room Costs Other operating costs Operating costs	Including depreciation of business building, cost of moon cakes, salary of resturants and pension, etc. Including shuttle service, fax machine, telephone, laundry, internet, set-top box, clubs, cost of souvenir, depreciation of business building, salary of customer service department and pension, etc. Depreciation of leased assets, rental cost and cost of parking lot		$78,385 499,942 490,054 (78,796) (94,803) 894,782 209,469 132,330 $1,236,581

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THE AMBASSADOR HOTEL CO., LTD.

20. Statement of operating expenses

For the year ended December 31, 2021

(In Thousands of New Taiwan Dollars)

Contents		Sales and Marketing		General and Administrative		Total	Note
Personnel Utilities Taxation Depreciation Commission Others Total		$18,736 84,065 8,831 9,914 29,271 110,730 $261,547		$150,157 14,286 50,717 67,911 - 95,750 $378,821		$168,893 98,351 59,548 77,825 29,271 206,480 $640,368	The amount of individual item in others does not exceed 5% of the account balance.

105