ASCENT — Annual Report 2022

Nov 10, 2022

ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES (Previous name: CHUWA WOOL INDUSTRY CO., (TAIWAN) LTD.)

Financial Statements and Independent Auditors’ Report 2022 and 2021 Stock code: 1439

Company Address: 19F, No. 557-1, Sec. 4, Zhongxiao E. Rd., Xinyi Dist., Taipei City

Tel. (02)2756-6777

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ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES

(Previous name: CHUWA WOOL INDUSTRY CO., (TAIWAN) LTD.) Financial Statements and Independent Auditors’ Report of 2022 and 2021 Table of Contents

Items	Page
I. Cover Page	1
II. Table of Contents	2 ~ 3
III. Affidavit	4
IV. Independent Auditors’ Report	5 ~ 11
V. Consolidated Balance Sheet	12 ~ 13
VI. Statement of comprehensive income	14 ~ 15
VII. Statement of changes in equity	16
VIII. Cash flow	16 ~ 17
IX. Notes on Consolidated Financial Statements	18 ~ 75
(I) History	19
(II) Dates and Procedures for Approval of Financial Reports	19
(III) Application of New and Amended Standards and Interpretations	19 ~ 20
(IV) Summary of Significant Accounting Policies	20 ~ 34
(V) Major Sources of Uncertainty in Significant Accounting Judgments,
Estimates, and Assumptions	35
(VI) Description of Important Accounting Items	35 ~ 59
(VII) Transactions with Related Parties	59 ~ 63
(VIII) Mortgage (Pledge) Assets	64

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Items	Page
(IX) Significant Contingent Liabilities or Unrecognized Contractual
Commitments	64
(X) Losses from Major Disasters	64
(XI) Material Subsequent Events	64
(XII) Others	64 ~ 72
(XIII) Disclosures in Notes	73
(XIV) Information on Operating Departments	74 ~ 75

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ASCENT DEVELOPMENT CO., LTD.

Declaration of Consolidated Financial Statements of Affiliates

In 2022 (from January 1, 2022 to December 31, 2022), the companies that should be included in the consolidated financial reports of affiliated companies based on "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" and the companies that should be included in the consolidated financial reports of subsidiaries based on the International Financial Reporting Standards 10. The related information that should be disclosed in the consolidated financial statements of affiliated companies are also already disclosed in the consolidated financial reports for subsidiaries, so that the consolidated financial statements of affiliated companies would not be published separately.

Hereby certify

Company Name: ASCENT DEVELOPMENT CO., LTD.

Person in-charge: Chia-Chi Hou

March 27, 2023

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Independent Auditors’ Report

(2022) Cai-Shen-Bao-Zi No. 22004503

To ASCENT DEVELOPMENT CO., LTD.:

Audit Opinions

ASCENT DEVELOPMENT CO., LTD. (Previous name: CHUWA WOOL INDUSTRY CO., (TAIWAN) LTD.) and its subsidiaries (the Group)’ balance sheet of December 31 of 2022 and 2021, the comprehensive income statement, changes of equity, and cash flow statement from January 1 to December 31 of 2022 and 2021 and the notes to the consolidated financial statements (including the summary of major accounting policies) have been audited by the Auditor of the Firm.

According to the opinions of the Auditor, the above-mentioned consolidated financial statements are prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers in all material aspects, which are sufficient to express the financial status of the Group on December 31, 2022 and 2021, and parent company only financial performance and parent company only cash flow from January 1 to December 31 in 2022 and 2021.

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. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group and its subsidiaries in accordance with the Professional Ethics for Certified Public Accountant of the Republic of China and we have fulfilled our other ethical responsibilities in accordance with these requirements. Based on the audit results of the Auditor and the audit reports of other auditors, we believe that we have obtained sufficient and appropriate audit evidence as the basis for expressing the audit opinion.

Matters to be Emphasized

In the third quarter of 2022, the Group acquired 33% of the equities of Hanlin Development Co., Ltd., a subsidiary of Hanshen Asset Management Co., Ltd. (the ultimate

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parent company of the ASCENT DEVELOPMENT CO., LTD.), and obtained the control over it. Since this equity transaction is an organizational reorganization under common control, it should be regarded as an acquisition from the beginning. Therefore, the Company has retroactively recompiled the consolidated financial statements of the previous period when preparing the consolidated financial statements of 2022. Please refer to Note 6(29) to the consolidated financial statements for details.

Key audit items

Key audit items refer to the most important items in the audit of the Company's 2022 consolidated financial statements based on our professional judgment. These matters have been dealt with in the process of checking the consolidated financial statements and reaching audit opinions, and the we do not express opinions on these matters independently.

Key audit matters in the Group's consolidated financial statements for the year ended December 31, 2022 are as follows:

Impairment testing of investment using the equity method

Descriptions

For the accounting policy of investment using the equity method, please refer to Note 4(15) of the consolidated financial statements, for the accounting policy of impairment of nonfinancial assets, please refer to Note 4(20) of the consolidated financial statements, and for the description of accounting items, please refer to the Notes 6(8) of the consolidated financial statements.

On December 31, 2022, the book value of ASCENT DEVELOPMENT CO., LTD.'s investment using the equity method was NT$939,639 thousands, accounting for 20% of the total consolidated assets. In accordance with the International Accounting Standard No. 28 "Investment in Affiliated Enterprises and Joint Ventures", the management level shall assess whether the recoverable amount of the investment is lower than the book value if there is objective evidence showing signs of impairment for the investment using the equity method. Since the objective evidence of its impairment assessment and the comprehensive consideration factors for determining the recoverable amount involve the subjective judgment of the management and have a high degree of uncertainty, and the investment amount using the equity

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method is significant, the auditor adopts the Group’s relevant Impairment assessment of equity method investments is listed as one of the most important matters of the audit.

Audit procedure

The auditor has implemented the following procedures to respond to the specific aspects described in the above key audit items:

1. Interview with the management level to understand the management's assessment of the signs of impairment of investments using the equity method and evaluate its rationality.

2. To obtain the equity value evaluation report issued by the external evaluation experts appointed by the management, the procedures performed by the auditor are as follows: (1) Assess the suitability and objectivity of the external evaluation experts appointed by the management level.

3. (2) Assess the appropriateness of the evaluation methods adopted by the external evaluation experts appointed by the management level and the rationality of the relevant assumptions.

Appropriateness of the vesting period of real estate sales revenue

Descriptions

Please refer to Note 4(27) of the consolidated financial statements for the accounting policy of operating revenue in the construction industry, and Note 6(20) to the consolidated financial statements for descriptions of accounting items.

The real estate sales revenue of the construction industry is recognized when the ownership transfer of the real estate is completed and the house inspection certificate is delivered to the customer. Due to the wide market range of real estate sales in the construction industry, it is necessary to review the ownership transfer and other information one by one before recognizing the sales revenue. Usually, a lot of manual works would be required to determine the correctness of the recognition time of the sales revenue. The appropriateness of the vesting period is listed as one of the most important matters in the audit.

Audit procedure

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The auditor has implemented the following procedures to respond to the specific aspects described in the above key audit items:

1. Interview with management to understand and review the procedures for recognizing real estate sales revenue and adopt it consistently during the financial statement comparison period.

2. Assess and verify the appropriateness of the attribution period of real estate sales income for a certain period before and after the deadline at the end of the period, including checking the land and building ownership transfer information and relevant dates to support the correctness of the recognition time of real estate sales revenue.

Other Matters - Reference to other Audits of other Auditors

For the Group's investment using the equity method in 2022 and 2021, the financial statements were not audited by us, but by other auditors. Therefore, in the opinions expressed by us on the above-mentioned consolidated financial statements, the amount listed in the financial statements of the Companies and the relevant information disclosed in Note 13 are based on the audit reports of other auditors. On December 31, 2022 and 2021, the amount of investment in the above-mentioned companies using the equity method was NT$939,639 thousands and NT$965,501 thousands, respectively, accounting for 20% and 20% of the total consolidated assets. In 2022 and 2021 the consolidated profits and losses recognized for the aforementioned companies were NT$102,193 thousands and NT$80,969 thousands, respectively, accounting for 270% and (157%) of the consolidated profits and losses for the current period.

Other Matters - Parent Company Only Financial Statements

ASCENT DEVELOPMENT CO., LTD. has compiled the parent company only financial statements for 2022, and the audit report of the emphasis and other matter paragraphs issued by the accountant with unqualified opinions is submitted for reference.

Responsibilities of management level and governance units for the consolidated financial statements

The responsibilities of the management is to prepare consolidated financial statements that are reasonably expressed in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards

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approved and published by the Financial Supervisory Commission and International Accounting Standards, and interpret and explain the announcement in preparation of consolidated financial statements that are fairly presented, and maintain the necessary internal controls related to the preparation of consolidated financial statements to ensure that there are no material misstatement in the financial statements that are caused by fraud or errors.

When preparing the consolidated financial statements, the responsibilities of the management level also include assessing the ability of the Group for going concern, the disclosure of related matters, and the adoption of the going-concern accounting basis, unless the management level intends to liquidate the Group or cease operations, or except for liquidation or cease of operation or has no realistic alternative but to do so.

The governance units (including the audit committee) of the Group are responsible for supervising the financial reporting process.

Responsibilities of Auditor to Audit Consolidated Financial Statements

The purpose of our audit of the financial statements is to obtain reasonable assurance as to whether there is any material misrepresentation in the consolidated financial statements as a whole resulting from fraud or error, and to issue an audit report. Reasonable certainty is of high degree of certainty, but there is no guarantee that the audit work performed in accordance with the auditing standards of the Republic of China will be able to detect material misstatement in the consolidated financial statements. Misstatements may result from fraud or error. Misstatements of individual amounts or aggregated amounts is considered material if it can reasonably be expected to affect economic decisions made by users of the consolidated financial statements.

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

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or overriding internal controls.

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1. Obtain an understanding of the internal controls 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 controls of both the Company and its subsidiaries’.

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

3. Conclude on the appropriateness of management level's use of the going concern basis of accounting and whether or not a material uncertainty exists related to events or conditions that may cast a significant doubt on the Group's and its subsidiaries’ ability to continue as a going concern. 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 consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as an ongoing concern.

4. Assess the overall presentation, structure and content of the consolidated financial statements (including relevant notes), and whether the financial statements properly represent relevant transactions and events.

5. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

The planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal controls that we identify during our audit.

We also provide the governance units with the statements that the personnel of the accounting firm that is subject to independence regulations have complied with the independence statement in the professional ethics code for CPAs of the Republic of China, and communicate with the governance units all relationships that may be considered to affect the independence of the auditors and other matters (including relevant protective measures).

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Group's consolidated financial

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statements for the year 2022, 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.

PwC Taiwan

Chun-Yuan Hsiao Accountant Se-Kai Lin

Former Securities and Futures Bureau, Financial Supervisory Commission Approval No.: Jin-Guan-Zheng-Liu-Zi No. 0960042326 Jin-Guan-Zheng-Liu-Zi No. 0960072936

March 27, 2023

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ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES (Previous name: CHUWA WOOL INDUSTRY CO., (TAIWAN) LTD.)

			Consolidated	Balance Sheet	Balance Sheet
		December 31,		2022 and 2021
								Expressed in thousands	of NTD
					December 31, 2022			December 31, 2021
	Assets		Notes		Amount	%		Amount	%
	Current assets
1100	Cash and cash equivalents	VI(I)		$	521,760	11 $		953,814	20
	Financial assets at amortized cost-
1136		VI(IV)			80,000		2	20,000		-
	Current
1150	Notes receivable, net	VI(V)			19,613		-	17,218		-
1170	Net accounts receivable	VI(V)			6,062		-	10,671		-
	Accounts receivable - related parties,
1180		VII			377		-	377		-
	net
1200	Other receivables				24,346		1	26,144		1
1210	other receivables – related parties	VII			-		-	183,213		4
1220	Current income tax assets				-		-	109		-
		VI(VI)(VII), VII and
130X	Inventory				2,067,819	43		1,469,857	30
		VIII
1410	Prepayments				3,319		-	2,569		-
1476	Other financial assets - current	VIII			96		-	98		-
1479	Other current assets - others				18,475		-	25,936		1
11XX	Total current assets				2,741,867	57		2,710,006	56
	Non-current assets
	Financial assets at FVTPL - non-
1510		VI(II)			86,000		2	86,000		2
	current
	Financial assets at FVTOCI - non-
1517		VI(III)			148,906		3	159,190		3
	current
	Investments accounted for using
1550		VI(VIII)			939,639	20		965,501	20
	equity method
1600	Property, plants, and equipment	VI(IX)			167		-	192		-
1755	Right-of-use assets	VI(X)			103		-	497		-
1760	Investment property, net	VI(XI)			887,049	18		901,576	18
1840	Deferred income tax assets	VI(XXVII)			338		-	2,630		-
1920	Deposits received	VII			10,139		-	10,100		-
1980	Other financial assets - non-current	VIII			4,766		-	37,378		1
1990	Other non-current assets - others				3,790		-	3,790		-
15XX	Total non-current assets				2,080,897	43		2,166,854	44
1XXX	Total assets			$	4,822,764	100 $		4,876,860	100

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ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES (Previous name: CHUWA WOOL INDUSTRY CO., (TAIWAN) LTD.)

			Consolidated Balance Sheet	Consolidated Balance Sheet	Consolidated Balance Sheet	Consolidated Balance Sheet
			December 31, 2022 and 2021
										Expressed in thousands	of NTD
						December 31, 2022				December 31, 2021
	Liabilities and equity			Notes		Amount	%			Amount	%
	Current liabilities
2100	Short-term borrowings	VI(VII)(XII)			$	1,318,925	28		$	675,368	14
2110	Short-term notes payable	VI(XIII)				28,762		1		141,858		3
2130	Contract liabilities - current	VI(XX)				31,698		1		60,178		1
2150	Notes payable					12,066		-		1,374		-
2170	Accounts payable					15,032		-		24,462		-
2180	Accounts payable - related parties	VII				9,769		-		9,769		-
2200	Other payables					29,914		1		60,765		1
2220	Other payables - related parties					-		-		32		-
2230	Current income tax liabilities					14,180		-		5,025		-
2280	Lease liabilities - current					2,301		-		2,331		-
2320	Long-term liabilities due within one year or one business cycle	VI(XIV)				16,000		-		418,000		9
2399	Other current liabilities - others					6,958		-		29,786		1
21XX	Total of current liabilities					1,485,605	31			1,428,948	29
	Non-current liabilities
2540	Long-term borrowings	VI(XIV)				390,000		8		-		-
2570	Deferred income tax liabilities	VI(XXVII)				511		-		13		-
2580	Lease liabilities - non-current					124,702		3		120,509		3
2600	Other non-current liabilities					6,942		-		7,159		-
25XX	Total non-current liabilities					522,155	11			127,681		3
2XXX	Total liabilities					2,007,760	42			1,556,629	32
	Equity attributable to owners of
	parent company
	Share capital	VI(XVI)
3110	Common stock capital					920,000	19			920,000	19
	Capital surplus	VI(XVII)
3200	Capital surplus					182,854		3		145,021		3
	Retained earnings	VI(XVIII)
3310	Legal reserve					357,010		8		341,774		7
3320	Special reserves					7,856		-		7,856		-
3350	Undistributed earnings					1,009,210	21			969,473	20
	Other equity	VI(XIX)
3400	Other equity				(	204,188) (		4) (		117,229) (		2)
31XX	Total equity attributable to owners of the parent company					2,272,742	47			2,266,895	47
35XX	Equity owned by the previous holder under the joint control	VI(XXIX)				-		-		347,601		7
36XX	Non-controlling interests					542,262	11			705,735	14
3XXX	Total equity					2,815,004	58			3,320,231	68
	Significant contingent liabilities and unrecognized contractual commitments	IX
3X2X	Total liabilities and equity				$	4,822,764	100		$	4,876,860	100

The attached notes to the consolidated financial statements form part of the consolidated financial statements. Please refer to them also.

Chairman : Chia-Chi Hou

Manager : Hsien-Wen Liu

Accounting Officer : Chien-Chang Luo

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ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES (Previous name: CHUWA WOOL INDUSTRY CO., (TAIWAN) LTD.) Consolidated Statement of Comprehensive Income January 1 to December 31, 2022 and 2021

Items

Expressed in thousands of NTD (Except for earnings per share in NTD) 2022 2021 Notes Amount % A m o u n t % VI(VII)(XX) $ 570,153 100 $ 615,535 100 VI(VI)(VII) (XXV) ( 446,013) ( 78) ( 505,266) ( 82) 124,140 22 110,269 18 VI(VII)(XXV) (XXVI) and VII ( 32,469) ( 6) ( 29,180) ( 5) ( 50,820) ( 9) ( 47,388) ( 8) XII(II) - - 68 - ( 83,289)( 15) ( 76,500)( 13) 40,851 7 33,769 5 VI(XXI) and VII 3,738 1 3,680 1 VI(XXII) 11,001 2 45,017 7 VI(XXIII) ( 48,508) ( 9) ( 8,593) ( 1) VI(XXIV) ( 11,664) ( 2) ( 13,709) ( 2) VI(VIII) 166,618 29 120,257 19 121,185 21 146,652 24 162,036 28 180,421 29 VI(XXVII) ( 18,444)( 3) ( 12,971)( 2) $ 143,592 25 $ 167,450 27

4000 Revenue 5000 Operating Costs 5900 Gross profit Operating Expenses 6100 Promotional expenses 6200 Administrative expenses 6450 Expected credit impairment gain 6000 Total operating expenses 6900 Operating income Non-operating income and expense 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Financial cost 7060 Profit and loss share of the affiliates and joint ventures recognized using the equity method 7000 Total non-operating income and expenses 7900 Income before tax 7950 Income tax expenses 8200 Current period net profit

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ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES (Previous name: CHUWA WOOL INDUSTRY CO., (TAIWAN) LTD.) Consolidated Statement of Comprehensive Income January 1 to December 31, 2022 and 2021

Items

Expressed in thousands of NTD (Except for earnings per share in NTD) 2022 2021 Notes Amount % Amount % VI(XIX) VI(III) ( $ 41,365) ( 7) ( $ 179,652) ( 29) VI(VIII) ( 64,426) ( 11) ( 39,288) ( 6) ( 105,791) ( 18) ( 218,940) ( 35) ( $ 105,791) ( 18) ( $ 218,940) ( 35) $ 37,801 7 ( $ 51,490) ( 8) $ 92,205 16 $ 128,274 21 13,190 2 12,928 2 38,197 7 26,248 4 $ 143,592 25 $ 167,450 27 ( $ 13,586) ( 2) ( $ 90,666) ( 14) 13,190 2 12,928 2 38,197 7 26,248 4 $ 37,801 7($ 51,490)( 8) VI(XXVIII) $ 1.00 $ 1.39 0.14 0.14 $ 1.14 $ 1.53 VI(XXVIII) $ 1.00 $ 1.39 0.14 0.14 $ 1.14 $ 1.53

Other comprehensive income (net amount) Items not reclassified to profit or loss 8316 Unrealized gains or losses on investments in equity instruments at FVTOCI 8320 Shareholding in other comprehensive income of affiliates and joint ventures under equity method - items not reclassified to income 8310 Total of items not reclassified to profit or loss 8300 Other comprehensive income (net amount) 8500 Total comprehensive income of the current period Net profit (loss) attributable to: 8610 Owner of parent company 8615 Equity owned by the previous holder under the joint control 8620 Non-controlling interests Total Total comprehensive income attributable to: 8710 Owner of parent company 8715 Equity owned by the previous holder under the joint control 8720 Non-controlling interests Total Basic earnings per share 9710 Owner of parent company 9720 Equity owned by the previous holder under the joint control 9750 Basic earnings per share Diluted earnings per share 9810 Owner of parent company 9820 Equity owned by the previous holder under the joint control 9850 Diluted earnings per share

The attached notes to the consolidated financial statements form part of the consolidated financial statements. Please refer to them also.

Manager : Hsien-Wen Liu

Chairman : Chia-Chi Hou

Accounting Officer : Chien-Chang Luo

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Expressed in thousands of NTD

ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES (Previous name: CHUWA WOOL INDUSTRY CO., (TAIWAN) LTD.) Consolidated Statement of Changes in Equity January 1 to December 31, 2022 and 2021

2021 (after restatement) Balance at January 1, 2021 Current period net profit Other comprehensive income of current period Total comprehensive income of the current period Appropriation and distribution of earnings Cash dividends Disposal of equity instruments at FVTOCI Changes in the net equity value of affiliates recognized under the equity method Disposal of equity instruments at FVTOCI by affiliates Balance at December 31, 2021 2022 Balance at January 1, 2022 Current period net profit Other comprehensive income of current period Total comprehensive income of the current period Appropriation and distribution of earnings Appropriation of legal reserve Cash dividends Capital reduction in cash Disposal of equity instruments at FVTOCI Disposal of equity instruments at FVTOCI by affiliates Changes in the net equity value of affiliates recognized under the equity method Impact of organizational reorganization Balance at December 31, 2022	Notes						Equity attrib	ut	able to owners ofparent company	able to owners ofparent company	able to owners ofparent company						Equity owned by the previous holder under the joint control		Non-controlling interests		Totalequity
			Common stock capital		Capitalsurplus			R	etained earnings				Unrealized gains or losses on financial assets measured at fair value through other comprehensive income		Total
							Legal reserve		Special reserves		Undistributed earnings
	VI(XIX) VI(III)(XIX) VI(VIII) VI(VIII)(XVII) (XIX) VI(XIX) VI(XVIII) VI(III)(XIX) VI(XIX) VI(VIII) VI(VIII)(XVII)( XXIX)		$ 920,000 - - - - - - - $ 920,000 $ 920,000 - - - - - - - - - - $ 920,000		$ 10,714 - - - - - 123,021 11,286 $ 145,021 $ 145,021 - - - - - - - - 7,372 30,461 $ 182,854		$ 341,774 - - - - - - - $ 341,774 $ 341,774 - - - 15,236 - - - - - - $ 357,010		$ 7,856 - - - - - - - $ 7,856 $ 7,856 - - - - - - - - - - $ 7,856		$ 817,112 128,274 ( 96 ) 128,178 - 45,791 - ( 21,608 ) $ 969,473 $ 969,473 92,205 696 92,901 ( 15,236 ) ( 18,400 ) - 76 ( 19,604 ) - - $ 1,009,210		$ 133,334 - ( 218,844 ) ( 218,844 ) - ( 42,041 ) - 10,322 ($ 117,229 ) ($ 117,229 ) - ( 106,487 ) ( 106,487 ) - - - ( 76 ) 19,604 - - ($ 204,188 )		$ 2,230,790 128,274 ( 218,940 ) ( 90,666 ) - 3,750 123,021 - $ 2,266,895 $ 2,266,895 92,205 ( 105,791 ) ( 13,586 ) - ( 18,400 ) - - - 7,372 30,461 $ 2,272,742		$ 381,882 12,928 - 12,928 ( 47,209 ) - - - $ 347,601 $ 347,601 13,190 - 13,190 - - ( 99,330 ) - - - ( 261,461 ) $ -		$ 775,335 26,248 - 26,248 ( 95,848 ) - - - $ 705,735 $ 705,735 38,197 - 38,197 - - ( 201,670 ) - - - - $ 542,262	$ 3,388,007 167,450 ( 218,940 ) ( 51,490 ) ( 143,057 ) 3,750 123,021 - $ 3,320,231 $ 3,320,231 143,592 ( 105,791 ) 37,801 - ( 18,400 ) ( 301,000 ) - - 7,372 ( 231,000 ) $ 2,815,004

The attached notes to the consolidated financial statements form part of the consolidated financial statements. Please refer to them also.

Chairman: Chia-Chi Hou

Manager: Xian-Wen Liu

Accounting Officer: Chien-Chang Luo

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ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES (Previous name: CHUWA WOOL INDUSTRY CO., (TAIWAN) LTD.) Consolidated Statement of Cash Flows January 1 to December 31, 2022 and 2021

Expressed in thousands of NTD

Cash flow from operating activities Net income before tax Adjustment items Income and expenses Depreciation expense Amortization expense Expected credit impairment gain Net gain from financial assets at FVTPL Interest income Dividend income Interest expense Shareholding in the profit of the affiliates under the equity method Impairment loss Loss from disposal of investment Changes in assets/liabilities related to operating activities Net changes in assets related to operating activities Notes receivable Accounts receivable Other receivables other receivables – related parties Inventory Prepayments Other financial assets - current Other current assets Other non-current assets Net changes in liabilities related to operating activities Contract liabilities Notes payable Accounts payable Other payables Other payables - related parties Other current liabilities Cash outflow from operations Interest paid Income tax paid Net cash outflow from operating activities

Notes January 1 to December 31, 2022 January 1 to December 31, 2021 $ 162,036 $ 180,421 VI(IX)(X) (XI)(XXV) 21,663 21,703 VI(XXV) - 6 XII(II) - ( 68 ) VI(II)(XXIII) - ( 2,206 ) VI(XXI) ( 3,738 ) ( 3,680 ) VI(III)(XX) ( 3,354 ) ( 42,424 ) VI(XXIV) 11,664 13,709 VI(VIII) ( 166,618 ) ( 120,257 ) VI(XXIII) 46,403 - VI(XXIII) - 233 ( 2,395 ) ( 6,564 ) 4,609 361 1,742 ( 8,475 ) - 37,722 ( 597,962 ) ( 215,124 ) ( 750 ) 26,901 2 17,819 7,461 ( 5,643 ) - 192 ( 28,480 ) 528 10,692 ( 23,355 ) ( 9,430 ) ( 46,589 ) ( 31,741 ) ( 14,398 ) ( 32 ) ( 25 ) ( 22,828) 17,504 ( 601,056 ) ( 171,709 ) ( 11,709 ) ( 13,779 ) ( 6,390) ( 16,558) ( 619,155) ( 202,046)

(continued on next page)

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ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES (Previous name: CHUWA WOOL INDUSTRY CO., (TAIWAN) LTD.) Consolidated Statement of Cash Flows January 1 to December 31, 2022 and 2021

Cash flow from investment activities Acquisition of financial assets at amortized cost Acquisition of financial assets at FVTPL Disposal of financial assets at FVTPL Acquisition of financial assets at FVTOCI Disposal of financial assets at FVTOCI Decrease (increase) of other receivables - related parties Proceeds from disposal of subsidiary (less deposit in bank of subsidiary disposed of) Decrease (increase) of other financial assets - non- current Decrease (increase) in refundable deposits Interest collected Dividends received Net cash inflow (outflow) from investing activities Cash flow from financing activities Increase in short-term borrowings Decrease in short-term notes payable Lease principal repayment Repayment of long-term borrowings Long-term borrowings Increase (decrease) in guarantee deposits received Distribution of cash dividends Cash paid for organizational restructuring Capital reduction in cash Net cash outflow from financing Decrease in cash and cash equivalents for the current period Cash and cash equivalents Cash and equivalent cash balance at the beginning of the period

Expressed in thousands of NTD Notes January 1 to December 31, 2022 January 1 to December 31, 2021 ( $ 60,000 ) $ - - ( 23,305 ) - 44,489 ( 65,880 ) ( 426,285 ) 34,799 418,032 180,000 ( 80,000 ) - ( 1,782 ) 32,612 ( 22,621 ) ( 39 ) 9 6,999 3,571 92,385 42,424 220,876( 45,468) VI(III)(XXX) 643,557 393,282 VI(III)(XXX) ( 113,096 ) ( 265,902 ) VI(III)(XXX) ( 1,619 ) ( 1,387 ) VI(III)(XXX) ( 430,000 ) ( 16,000 ) VI(III)(XXX) 418,000 - VI(III)(XXX) ( 217 ) 82 VI(XVIII) ( 18,400 ) ( 143,057 ) VI(XXIX) ( 231,000 ) - ( 301,000) - ( 33,775) ( 32,982) ( 432,054 ) ( 280,496 ) 953,814 1,234,310 $ 521,760 $ 953,814

The attached notes to the consolidated financial statements form part of the consolidated financial statements. Please refer to them also.

Manager : Hsien-Wen Liu

Accounting Officer : Chien-Chang Luo

Chairman : Chia-Chi Hou

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ASCENT DEVELOPMENT CO., LTD. and SUBSIDIARIES

(Previous name: CHUWA WOOL INDUSTRY CO., (TAIWAN) LTD.) Notes to Consolidated Financial Statements

2022 and 2021 (after restatement)

Expressed in thousands of NTD (unless otherwise stated)

I. History

• (I) CHUWA WOOL INDUSTRY CO., (TAIWAN) LTD. was established on August 19, 1964 in accordance with the Company Act. On June 23, 2022, the resolution of the shareholders' meeting changed the name to ASCENT DEVELOPMENT CO., LTD. (hereinafter referred to as "the Company"), which was completed on July 15, 2022. The main business of the Company and its subsidiaries (hereinafter referred to as "the Group") is sales of wool tops, carbonized wool, scoured wool, shrink-resistant wool tops and real estate development, lease and sale, etc. The Company's stock has been listed on the Taiwan Stock Exchange since May 22, 1989.

• (II) Hanyang Global Co., Ltd. holds 53.41% equity of the Company, and Hanshen Asset Management Co., Ltd. is the ultimate parent company of the Group.

II. Dates and Procedures for Approval of Financial Reports

The financial statements are approved and issued by the board of directors on March 27, 2023.

III. Application of new and revised standards and interpretations

• (I) The impact of the newly released and revised International Financial Reporting Standards that have been approved and issued by the Financial Supervisory Commission (FSC)

The following table summarizes the newly issued, revised and revised standards and interpretations of the International Financial Reporting Standards applicable in 2022 that were recognized and issued by the FSC:

recognized and issued by the FSC:
Application of new/corrected/revised standards and interpretations	Effective date of IASB's announcement
Amendments to IFRS3 "Index to Conceptual Framework" Amendment to IAS 16 regarding "Property , Plant, and Equipment: Proceeds before Intended Use" Amendments toIAS37"Onerous Contracts - Cost of Fulfilling Contracts" 2018-2020Annual Improvements	January 1, 2022 January 1, 2022 January 1, 2022 January 1, 2022

The Group has assessed that the above standards and interpretations have no material impact on the Group's financial position and financial performance.

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(II) The impact of the newly released and revised International Financial Reporting Standards that have not yet been adopted by the FSC

The following table summarizes the newly issued, corrected and revised standards and interpretations of the International Financial Reporting Standards applicable in 2023 that were recognized and issued by the FSC:

Effective date of IASB's Application of new/corrected/revised standards and interpretations announcement Amendments to IAS 1 "Disclosure of Accounting Policies" January 1 , 2023 Amendments to IAS 8 "Definition of Accounting Estimates" January 1 , 2023 Amendments to IAS 12 regarding "Deferred Tax related to Assets and January 1 , 2023 Liabilities arising from a Single Transaction"

The Group has assessed that the above standards and interpretations have no material impact on the Group's financial position and financial performance.

(III) Impacts of IFRSs issued by the IASB but not yet endorsed by the FSC

The following table summarizes the newly released, amended, and revised standards and interpretations of the IFRSs issued by the IASB but not yet recognized by the FSC:

Application of new/corrected/revised standards and interpretations

Effective date of IASB's announcement

Amendments toIFRS10and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture " Amendments toIFRS16"Lease Liability in a Sale and Leaseback" IFRS No.17"Insurance Contracts" Amendments toIFRS17"Insurance Contracts" Amendments toIFRS17"Initial Application of IFRS17and IFRS9- Comparative Information" Amendments to IAS1 "Classification of Liabilities as Current or Non-current" Amendments to IAS1 Non-current Liabilities with Covenants"

To be decided by IASB January 1, 2024 January 1 , 2023 January 1 , 2023 January 1 , 2023 January 1, 2024 January 1, 2024

The Group has assessed that the above standards and interpretations have no material impact on the Group's financial position and financial performance.

IV. Summary of Significant Accounting Policies

The major accounting policies adopted in the preparation of the financial statements are described below. Unless otherwise stated, these policies apply consistently throughout all reporting periods.

(I) Compliance statement

The consolidated financial report has been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards (IFRSs), International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC.

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(II) Compilation basis

1. Except for financial assets at FVTPL and financial assets at FVTOCI, the financial statement is prepared based on historical costs.

2. The compilation of financial statement in compliance with IFRSs requires the use of some important accounting estimates. In the process of adopting the Group's accounting policies, management also needs to adopt the judgments, which involve in highly judgmental or complex items, or major assumptions and estimated items in financial statements. For details, please refer to Note 5.

(III) Consolidation basis

1. Basis for preparation of consolidated financial statements

2. (1) The Group incorporates all subsidiaries into entities for the preparation of financial statements. The subsidiary refers to an entity controlled by the Group, when the firm is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity, it shall be regarded that the Group is controlling the entity. Subsidiaries are included in the consolidated financial report from the date when the Group obtains control, and are terminated from the date when control is lost.

3. (2) Intra-group transactions, balances and unrealized gains and losses are eliminated. The accounting policies of the subsidiaries have been adjusted as necessary to be consistent with the policies adopted by the Group.

4. (3) Profit and loss and other components of comprehensive profit and loss are attributable to the owners and non-controlling interests of the parent company; the total comprehensive profit and loss is also attributable to the owners and non-controlling interests of the parent company, even if the non-controlling interests suffer losses due to this.

5. (4) If the change in the shareholding of the subsidiary does not result in a loss of control (transactions with non-controlling interests), it will be regarded as an equity transaction, which is being regarded as the transaction with the owner. Any difference between the adjusted amount of non-controlling interests and the fair value of the consideration paid or received is directly recognized in equity.

6. (5) When the Group loses control over the subsidiary, the remaining investment in the former subsidiary is remeasured at fair value and adopted as the fair value of the originally recognized financial assets or the cost of the originally recognized investment in affiliated enterprises or joint ventures. The difference between the fair value and the carrying amount is recognized as profit or loss of the current period. For all amounts previously recognized in other comprehensive profit or loss related to the subsidiary, the

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accounting treatment is the same as if the Group directly disposes of the relevant assets or liabilities, that is, if the benefit or loss previously recognized as other comprehensive profit or loss will be reclassified as profit or loss when disposing of the relevant assets or liabilities, when control of the subsidiary is lost, the benefit or loss will be reclassified from equity to profit or loss.

2. Subsidiaries included in the financial statements are as follows:

Name of the Investment Company Name of Investee Business type	Percentage of shareholding December 31, 2022 December 31, 2021 Description
The Company HCW INVESTMENT CO., LTD. General investment 100.00 100.00 The Company Hanlin Development Co., Ltd. Investment inreal estate and buildings 33.00 33.00 Note1 Hanlin Development Co., Ltd. The Pu-Li Management Consulting Co., Ltd. Management consulting service - - Note 2

Note 1: In the third quarter of 2022, the Company acquired 33% of the equities of Hanlin Development Co., Ltd. (hereinafter referred to as Hanlin Development), a subsidiary of Hanshen Asset Management Co., Ltd. (the ultimate parent company of the Group), and obtained more than half of seats of its board of directors. Therefore, the equity transaction belongs to the organizational reorganization under common control, and it should be considered as a consolidation from the beginning. When preparing the comparative consolidated financial statements, the previous consolidated financial statements shall be retroactively and restated.

Note 2: Hanlin Development disposed of its shares in August 2021.

1. Subsidiaries not included in the consolidated financial statements: None.

2. Different adjustments and treatments in the accounting period of subsidiaries: None.

3. Major restrictions: None.

4. Subsidiaries with significant non-controlling equity of the Group:

The total amount of non-controlling interests of the Group as of December 31, 2021 and 2021 were NT$542,262 and NT$705,735, respectively. The following is the information about the significant non-controlling interests of the Group and its subsidiaries:

Name of Investee Principal place of business	Non-controlling interests Non-controlling interests
	December 31, 2022 December 31, 2021
	Amount Percentage of shareholding Amount Percentage of shareholding
Hanlin Development Taiwan	$ 542,262 67 $ 705,735 67

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Summarized financial information of subsidiaries:

Balance Sheet

Balance Sheet
Current assets Non-current assets Current liabilities Non-current liabilities Total netassets	Hanlin Development Co., Ltd.
	December 31, 2022	December 31, 2021
	$ 829,581 858,178 ( 357,795) ( 520,616)	$ 1,079,770 905,825 ( 805,226) ( 127,032)
	$ 809,348	$ 1,053,337

Statement of Comprehensive Income

Hanlin Development Co., Ltd.

Income Net income before tax Income taxexpenses Current period net profit Total comprehensive income of the current period Comprehensive income attributed to non-controlling interests Dividends paid to non-controlling interests	2022 $ 552,376 $ 68,897 ( 11,886) 57,011 $ 57,011 $ 38,197 $ -	2021
		$ 532,777
		$ 41,112 ( 1,935)
		39,177
		$ 39,177
		$ 26,248
		$ 95,848

Statement of Cash Flow

Net cash inflow from operating activities Net cash inflow (outflow) from investing activities Net cash outflow from financing Decrease in cash and cash equivalents for the current period Cash and cash equivalents Cash and equivalent cash balance at the beginning of the period	Hanlin Development Co., Ltd. 2022 2021 $ 68,558 $ 388,462 212,593 ( 107,234) ( 270,447) ( 484,015) 10,704 ( 202,787) 200,341 403,128 $ 211,045 $ 200,341	Hanlin Development Co., Ltd. 2022 2021 $ 68,558 $ 388,462 212,593 ( 107,234) ( 270,447) ( 484,015) 10,704 ( 202,787) 200,341 403,128 $ 211,045 $ 200,341
		2021 $ 388,462 ( 107,234) ( 484,015) ( 202,787) 403,128 $ 200,341

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(IV) Foreign currency conversion

Items included in the financial statements of each entity within the Group are measured using the currency of the primary economic environment in which the entity operates (i.e. the functional currency). The consolidated financial statements are presented in the Company's functional currency "NTD".

Foreign currency transactions and balances

1. Foreign currency transactions are converted into functional currency at the spot exchange rate on the transaction date or measurement date, and the conversion difference arising from the conversion of these transactions is recognized as current profit or loss.

2. The balance of foreign currency monetary assets and liabilities is evaluated and adjusted according to the spot exchange rate on the balance sheet date, and the translation difference arising from the adjustment is recognized as current profit or loss.

3. The balance of foreign currency non-monetary assets and liabilities, which are at FVTPL, shall be adjusted according to the spot exchange rate on the balance sheet date, and the exchange difference arising from the adjustment shall be recognized as current profit or loss; if it is at FVTOCI, it shall be adjusted at the spot exchange rate on the balance sheet date, and the exchange difference arising from the adjustment shall be recognized in other comprehensive profit or loss; if it is not at fair value, it shall be at the historical exchange rate on the initial transaction date.

4. All exchange gains and losses are listed in "Other Gains and Losses" in the Income Statement.

(V) Classification criteria for current and non-current assets and liabilities

The Group is engaged in entrusting construction companies to build or sell buildings, and its business cycle is usually longer than one year. Assets and liabilities related to construction projects are classified as current or non-current based on the business cycle; and the standards for the classification of other items as current and non-current are as follows:

1. Assets that meet one of the following conditions are classified as current assets:

2. (1) The asset is expected to be realized, or it is intended to be sold or consumed in the normal business cycle.

3. (2) Mainly held for the purpose of trading.

4. (3) Those expected to be realized within 12 months after the balance sheet date.

5. (4) Cash or cash equivalents, except those that can be exchanged at least 12 months after the balance sheet date or used to settle liabilities are restricted.

The Group classifies all assets that do not meet the above conditions as non-current.

1. Liabilities that meet one of the following conditions are classified as current liabilities:

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• (1) Expected to be settled in the normal business cycle.

• (2) Mainly held for the purpose of trading.

• (3) Those expected to be paid off within 12 months after the balance sheet date.

• (4) The repayment period cannot be unconditionally postponed to at least 12 months after the balance sheet date. The terms of the liabilities may be based on the choice of the counterparty, which may be settled by issuing equity instruments, and its classification is not affected.

The Group classifies all liabilities that do not meet the above conditions as non-current.

(VI) Cash equivalents

Cash equivalents refer to short-term and highly liquid investments that can be converted into fixed amounts of cash at any time with little risk of changes in value. Time deposits that meet the definition above and are held to meet short-term cash commitments in operations are classified as cash equivalents.

(VII) Financial assets at FVTPL

1. Refers to financial assets that are not at amortized cost or at FVTOCI.

2. The Group adopts transaction-day accounting for financial assets at FVTPL that conform to customary transactions.

3. The Group measures it at fair value at the time of initial recognition, and the relevant transaction costs are recognized in profit or loss, and subsequently at fair value, and its profits or losses are recognized in profit or loss.

4. When the right to receive dividends is established, the economic benefits related to dividends are likely to flow in, and the amount of dividends can be measured reliably, hence the Group recognizes dividend income in profit or loss.

(VIII) Financial assets at FVTOCI

1. Refers to an irrevocable choice made at the time of original recognition to present changes in the fair value of equity instrument investments not held for trading in other comprehensive income.

2. The Group adopts transaction-day accounting for financial assets at fair value through other comprehensive gains and losses that conform to transaction practices.

3. The Group measures at its fair value plus transaction costs at the time of original recognition, and subsequently at fair value:

Changes in the fair value of equity instruments are recognized in other comprehensive profit or loss. When delisting, the accumulated gains or losses previously recognized in other comprehensive profit or loss shall not be reclassified to profit or loss, and shall be transferred

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to retained earnings. When the right to receive dividends is established, the economic benefits related to dividends are likely to flow in, and the amount of dividends can be measured reliably, hence the Group recognizes dividend income in profit or loss.

(IX) Financial assets at amortized cost

1. Refers to those who meet the following conditions at the same time:

2. (1) The financial asset is held under the business model for the purpose of collecting contractual cash flow.

3. (2) The contract terms of the financial asset generate cash flow on a specific date, which is entirely the payment of principal and interest on the outstanding principal amount.

4. The Group adopts transaction-day accounting for financial assets at cost after amortization that comply with transaction practices.

5. The Group measures its fair value plus transaction costs at the time of initial recognition, and then adopts the effective interest method to recognize interest income and impairment losses during the circulation period according to the amortization procedure, and when delisting, it will be recognized the gain or loss is recognized in profit or loss.

6. The time deposits held by the Group that are not categorized as cash equivalents are measured by the investment amount because the holding period is short and the impact of discounting is not significant.

(X) Accounts and Notes Receivable

1. Refers to accounts and notes that have the unconditional right to receive the consideration amount in exchange for the transfer of goods or services in accordance with the contract.

2. For unpaid short-term accounts and notes receivable, since discounting has little effect, the Group measures them based on the original invoiced amount.

(XI) Impairment of financial assets

On each balance sheet date, for financial assets at amortized cost, after considering all reasonable and supportable information (including forward-looking information), the Group has no significant increase in credit risk since the original recognition , which measures the allowance loss by the amount of 12-month expected credit losses; for those whose credit risk has increased significantly since the original recognition, the allowance for loss shall be measured according to the amount of expected credit loss during the duration; for accounts receivable that do not include significant financial components, the allowance for loss shall be measured according to the amount of expected credit loss during the duration.

(XII) Delisting of financial assets

Financial assets will be delisted when the Group's contractual rights to receive cash flows

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from the financial assets lapse.

(XIII) Lessor's lease transaction - Business lease

Lease income from business leases and net of any incentives given to the lessee will be amortized on a straight-line basis over the lease term and recognized as current profit or loss.

(XIV) Inventory

1. Including land for construction, premises under construction, and premises for sale, etc., the acquisition cost is adopted as the accounting basis, and the project profit and loss is recognized according to the completed contract method. The land for construction is listed as the premises under construction when it is actively developed, and the relevant interest is capitalized from the time of active development or construction to the completion of the work.

2. Inventory at the end of the period is measured by the lower of cost and net realizable value. When comparing the lower of cost and net realizable value, the item-by-item comparison method is adopted; and the net realizable value is the estimated selling price in the normal course of business less the estimated cost to complete and the estimated cost to complete the sale.

- (XV) Investments using the equity method Affiliated enterprises

1. Affiliated enterprises refer to all entities over which the Group has significant influence but no control, generally directly or indirectly holding more than 20% of their voting shares. The Group adopts the equity method to dispose of the investment in affiliated enterprises, and recognizes it at cost when acquired.

2. The Group recognizes the share of profit and loss acquired by the affiliated enterprises as profit and loss of the current period, and the share of other comprehensive profit and loss acquired by the Group as other comprehensive profit or loss. If the Group's share of losses to any affiliated enterprise is equivalent to or exceeds its equity in the affiliated enterprise (including any other unsecured receivables), the Group will not recognize further losses unless the Group has any legal or constructive obligations to, or has paid on behalf of the affiliated enterprise.

3. When the affiliated enterprise has any non-profit or loss and other comprehensive profit or loss equity changes that do not affect the shareholding ratio, the Group will recognize all equity changes as "capital surplus" based on the shareholding ratio.

4. The unrealized gains and losses arising from transactions between the Group and affiliated enterprises have been eliminated in proportion to its equity in the affiliated enterprises; unless there is further evidence that the assets transferred in the transaction have been impaired, unrealized losses will also be eliminated. The accounting policies of the

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affiliated enterprises have been adjusted as necessary to be consistent with the policies adopted by the Group.

1. In the event that an affiliate enterprise issues new shares, and the Group does not subscribe to the new shares in accordance with the proportion, resulting in a change in the investment ratio but still having a significant impact on it, the increase or decrease of the change in the net equity value is to adjust the "capital surplus" and "investments accounted for under the equity method". If the proportion of investment is reduced, in addition to the above-mentioned adjustments, the gains or losses related to the reduction of ownership interests that have been previously recognized in other comprehensive profit or loss, and the gains or losses must be reclassified to profit or loss when disposing of related assets or liabilities, it shall be reclassified to profit or loss according to the reduction ratio.

2. When the Group disposes of an affiliated enterprise and loses its significant influence on such affiliated enterprise, for all amounts previously recognized in other comprehensive profit or loss related to the affiliated enterprise, the accounting treatment is the same as if the Company directly disposes of the relevant assets or liabilities, that is, if the benefit or loss previously recognized as other comprehensive profit or loss will be reclassified as profit or loss when disposing of the relevant assets or liabilities, when control of the affiliated enterprise is lost, the benefit or loss will be reclassified from equity to profit or loss. If there is still a significant influence on the affiliated enterprises, only the amount previously recognized in other comprehensive profit and loss shall be transferred out in the above-mentioned manner on a proportionate basis.

(XVI) Joint Agreements

1. For the interests in joint operations, the Group recognizes the direct rights (and their shares) to the assets, liabilities, income and expenses of the joint operations, and has included them in the applicable items of the financial report.

2. When participating in a joint venture without joint control, the Group will handle its interest in the agreement in accordance with the provisions of IFRS 9 "Financial Instruments".

(XVII) Property, plants, and equipment

1. Real estate, plant and equipment are recorded on the basis of acquisition cost.

2. Subsequent costs are included in the book value of the asset or recognized as a separate asset only when the future economic benefits related to the item are likely to flow into the Group and the cost of the item can be measured reliably. The book value of the replaced part shall be delisted. All other maintenance expenses are recognized as current profit or loss when incurred.

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1. The subsequent measurement of property, plant and equipment adopts the cost model. Except for land, which is not listed for depreciation, the depreciation will be calculated using the straight-line method based on the estimated service life. If the composition of property, plant and equipment is significant, it will be depreciated separately.

2. The Group examines the residual value, service life and depreciation method of each asset at the end of each financial year. If the expected value of the residual value and service life is different from the previous estimate, or the future economic value contained in the asset If there is a significant change in the expected consumption pattern of benefits, it shall be handled in accordance with the accounting estimate change provisions of International Accounting Standard No. 8 "Accounting Policies, Changes in Accounting Estimates and Errors" from the date of the change. The service life of each asset is as follows:

Houses and buildings 8~20 years Office equipment 5~23 years

(XVIII) Lessee's lease transaction - right-of-use asset/lease liability

1. Lease assets are recognized as right-of-use assets and lease liabilities on the day they become available to the Group. When the lease contract is a short-term lease or a lease of a low-value underlying asset, the lease payment is recognized as an expense during the lease period using the straight-line method.

2. Lease liabilities are recognized at the present value of unpaid lease payments discounted at the Group's incremental borrowing rate on the lease commencement date. Lease payments are fixed payments, less any lease incentives that can be received. Subsequent adoption of the interest method is measured by the amortized cost method, and interest expenses are provided during the lease period. When the lease term or lease payment changes due to non-contract modification, the lease liability will be reassessed, and the re-measurement amount will be adjusted to the right-of-use asset.

3. The right-of-use asset is recognized at cost on the lease commencement date, and the cost is the original measured amount of the lease liability. Subsequent measurement is made using the cost model, and depreciation expenses are provided when the service life of the right-of-use asset expires or when the lease period expires, whichever is earlier. When the lease liability is reassessed, the right-of-use asset will adjust any remeasurement of the lease liabilities.

4. For a lease modification that reduces the scope of the lease, the lessee will reduce the book amount of the right-of-use asset to reflect partial or complete termination of the lease, and

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recognize the difference between it and the remeasured amount of the lease liability in profit or loss.

(XIX) Investment property

Investment real estate is recognized at acquisition cost, and the subsequent measurement adopts the cost model. Except for land, depreciation is provided by the straight-line method according to the estimated service life which ranges from 8 to 60 years.

(XX) Impairment of non-financial assets

On the date of balance sheet, the Group will estimate the recoverable amount of assets which may be subject to impairment, and recognize the impairment loss when the recoverable amount is lower than its book value. The recoverable amount is the fair value of an asset less costs of disposal or its value in use, whichever is higher. When the asset impairment recognized in the previous year does not exist or decreases, the impairment loss shall be reversed. However, the increase in the book value of the asset due to the reversal of the impairment loss shall not exceed the book amount of the asset after deducting depreciation or amortization if no impairment loss is recognized.

(XXI) Borrowings

The long- and short-term funds borrowed from banks. The Group measured it at the fair value less transaction costs at the time of original recognition, and subsequently recognized any difference between the price after deducting transaction costs and the redemption value, and adopted the effective interest method and amortizing procedures to recognize interest expenses during the circulation period in profit and loss.

(XXII) Notes and Accounts Payable

1. Refers to the debts incurred due to the purchase of raw materials, commodities, or services on credit, and the notes payable incurred due to business and non-business matters.

2. For unpaid short-term accounts and notes payable, since discounting has little effect, the Group measures them based on the original invoiced amount.

(XXIII) Delisting of financial liabilities

The Group delists financial liabilities when the obligations specified in the contract are performed, canceled or expired.

(XXIV) Employee benefits

1. Short-term employee benefits

Short-term employee benefits are at non-discounted amounts expected to be paid and

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are recognized as an expense when the related service is rendered.

1. Pension

For a definite contribution plan, the amount of the pension fund that shall be appropriated is recognized as the current pension cost on the basis of accruals. Advance payments are recognized as assets to the extent that they are refundable in cash or reduce future payments.

1. Severance benefits

Severance benefits are benefits provided when the employee's employment is terminated before the normal retirement date or when the employee decides to accept the company's welfare offer in exchange for the termination of employment. The Group recognizes an expense when it is no longer possible to withdraw the offer of termination benefits or when the related restructuring costs are recognized, whichever is earlier. Benefits that are not expected to be fully settled within 12 months after the balance sheet date will be discounted.

1. Employees and directors remuneration

Employee remuneration and directors' remuneration are recognized as expenses and liabilities when there is a legal or constructive obligation and the amount can be reasonably estimated. If there is a discrepancy between the actual distribution amount and the estimated amount in subsequent resolutions, it shall be treated as a change in accounting estimate. In addition, if employee remuneration is paid by stock, the basis for calculating the number of shares is the closing price on the day before the resolution of the board of directors.

(XXV) Income Tax

1. Income tax expense includes current and deferred income tax. Income taxes are recognized in profit or loss, except for income taxes that relate to items that are recognized in other comprehensive profit or loss or directly in equity, respectively.

2. The Group calculates current income tax based on the tax rate that has been enacted or substantively enacted on the balance sheet date in the country where the Group operates and generates taxable income. The management level periodically assesses the status of income tax filings with respect to applicable income tax regulations and, where applicable, estimates income tax liabilities based on the expected tax payments to the taxation competent authorities. For undistributed earnings, additional income tax is levied in accordance with the Income Tax Law. In the year following the year in which the earnings are generated, the undistributed earnings income tax expense shall be recognized based on the distribution of the actual earnings after the shareholders'

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meeting approves the earnings distribution proposal.

1. The balance sheet method is adopted for deferred income tax, which is recognized according to the temporary difference between the tax basis of assets and liabilities and their carrying amount on the balance sheet. Deferred income tax liabilities arising from the original recognition of goodwill are not recognized if the deferred income tax arises from the original recognition of assets or liabilities in a transaction (excluding business combinations) and at the time of the transaction If it does not affect accounting profit or taxable income (tax loss), it will not be recognized. For temporary differences related to investment in subsidiaries and affiliated enterprises, if the Group can control the timing of the reversal of the temporary difference and it is highly likely that the temporary difference will not reverse in the foreseeable future, it will not be recognized. The deferred income tax is based on the tax rate (and taxation laws) that has been enacted or substantively enacted on the balance sheet date and is expected to be applicable when the relevant deferred income tax assets are realized or the deferred income tax liabilities are settled.

2. Deferred income tax assets are recognized within the scope of temporary differences, unused tax losses and unused income tax credits that are likely to be available in future taxable income, and are reassessed on each balance sheet date. Evaluate unrecognized and recognized deferred tax assets.

3. The later part of the unused income tax deduction due to the purchase of equipment or technology, research and development expenditure, and equity investment, etc., which is within the scope of future taxable income that is likely to be used for the unused income tax deduction. Recognize deferred income tax assets.

(XXVI) Dividend distribution

The dividends distributed to the shareholders of the Company are recognized in the financial report when the shareholders' meeting of the Company resolves to distribute dividends, and the distribution of cash dividends is recognized as the liability.

(XXVII) Revenue recognition

1. Product sales

Mainly wool tops, shrink-resistant wool tops and shrink-resistant loose wool, etc. Sales revenue is recognized when the goods are sold to customers, and revenue is recognized based on the price stated in the contracts.

1. Real estate sales for land development

2. (1) The main business of the Group is land development and sales of real estate, and

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the revenue is recognized when the control of real estate is transferred to customers. For the signed residential sales contracts, due to the restrictions of the contract terms, the real estate has no other use for the Group, but the Group will not have the enforceable right to the contract payment until the legal ownership or use right of the real estate is transferred to the customer. Revenue is recognized when the ownership or use right is transferred to the customer.

• (2) Part of the Group's sales contracts include the change consideration of price reduction, and the Group takes the expected value or the most likely amount as the appropriate estimate of the change consideration.

• (3) The Group's contract for the sale of pre-sale houses contains the terms of advance payment from customers, and the time interval between the time of advance receipt and the transfer of commodity control is longer than one year. According to the provisions of IFRS15, if the Group judges that there are significant financial components in individual pre-sale house contracts, it should adjust the amount of promised consideration and recognize interest expenses. In addition, IFRS15 states that enterprises shall only consider the materiality of financial components at the contract level, and not consider whether financial financing is significant at the portfolio level.

• Lease revenue

A lease is classified as a finance lease when the terms of the lease transfer substantially all the risks and rewards of the leased asset to the lessee. The others are classified as operating leases. Under a finance lease, amounts due from the lessee are included as lease receivables. Financing income is apportioned to each accounting period to reflect the fixed rate of return available in each period. Lease income from operating leases is recognized as income on a straight-line basis over the term of the relevant lease.

(XXVIII) Organizational restructuring under joint control

1. According to the IFRS Q&A of "Accounting Concerns about Business Combinations under Joint Control" issued by the Accounting Research and Development Foundation on October 26, 2018, due to the International Financial Reporting Standard No. 3 "Business Combinations", there is no clear regulation on the merger of enterprises under joint control, so the accounting treatment of organizational reorganization within the group shall still apply the provisions of the relevant explanation letters issued in Taiwan. The book value method is adopted, and it is regarded as the restructuring of the previous financial statements from the beginning of the merger.

2. In the third quarter of 2022, the Company acquired 33% of the equity of Hanlin Development Co., Ltd., a subsidiary of Hanshen Asset Management Co., Ltd. (the

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ultimate parent company of the Group), and obtained more than half of the seats of its board of directors. Because this equity transaction is an organizational reorganization under common control, according to the ARDF official letter (2012) Ji Mi Zi No. 301, the Company considers that Hanlin Development has been merged from the beginning, and when recompiling the financial statements of previous years, it shall attribute the share of the equity originally belonged to the shareholders of Hanlin Development (Hanshin Asset Management Co., Ltd.) to the "equity owned by the previous holder under the joint control", and the share of profits and losses originally belonged to the shareholders of Hanlin Development (Hanshin Asset Management Co., Ltd.) shall attributed to the "net profit (loss) owned by the previous holder under the joint control".

(XXIX) Operating segment

Information on the Group's operating segments is reported in a manner consistent with the internal management reports provided to the chief decision-maker of business operation. The chief decision-maker of business operation is responsible for allocating resources to operating departments and evaluating their performance.

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V. Major sources of uncertainty in major accounting judgments, estimates and assumptions

When the Group prepared these financial statements, the management level has adopted its judgment to determine the accounting policies adopted, and made accounting estimates and assumptions based on the current situation at the balance sheet date and reasonable expectations of future events. The major accounting estimates and assumptions made may differ from the actual results, and will be continuously evaluated and adjusted taking into account historical experience and other factors. These estimates and assumptions have a risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. Please explain in detail the following explanations on the uncertainty of major accounting judgments, estimates and assumptions:

(I) Important Judgments for Adoption of Accounting Policies

None.

(II) Important Accounting Estimates and Assumptions

1. Impairment testing of investment using the equity method

When there is an indication of impairment that an investment using the equity method may have been impaired so that the carrying amount cannot be recovered, the Group immediately assesses the impairment of the investment. The Group evaluates the recoverable amount based on the discounted present value of the expected future cash flow of the invested company, and analyzes the rationality of the relevant assumptions. On December 31, 2022, the Group's investment using the equity method after recognizing impairment losses was NT$939,639.

1. Evaluation of inventory

Because inventories shall be priced at the lower of cost and net realizable value, the Group shall adopt judgment and estimation to determine the net realizable value of inventories on the balance sheet date. The management of the Group mainly relies on historical experience and the amount of future market sales value It is the basis of estimation and therefore may be subject to material changes. On December 31, 2022, please refer to Note 6(6) for the inventory information of the Group.

VI. Explanation of important accounting items

(I) Cash and cash equivalents

Cash on hand Demand deposits Time deposits	December 31, 2022 $ 33 471,927 49,800 $ 521,760	December 31, 2021 $ 56 623,758 330,000 $ 953,814

1. The credit quality of the financial institutions that the Group interacts with is good, and the

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Group interacts with a number of financial institutions to diversify the credit risk, and the risk of default is expected to be very low.

1. Please refer to Note 8 for details of the Group's performance guarantee and the collateral account as a pledge guarantee (account listed in "Other Financial Assets - Current and NonCurrent").

(II) Financial assets at FVTPL

Current"). cial assets at FVTPL
Non-current items: Mandatory financial assets at FVTPL Joint development projects	December 31, 2022 $ 86,000	December 31, 2021
		$ 86,000

1. The Group's financial assets at FVTPL had a net income (loss) of $0 recognized in profit or loss in both 2022 and 2021.

2. The Group did not provide financial assets at FVTPL as pledge guarantees.

3. Hanlin Development signed a land joint investment and development agreement with five other companies in 2019, with an investment ratio of 20%. Since the investment purpose of Hanlin Development is only to share profits without joint control, the interest in the agreement is treated in accordance with IFRS 9 "Financial Instruments" and listed as financial assets that are mandatory to be at FVTPL.

(III) Financial assets at FVTOCI

al assets at FVTOCI
Equity instruments Stocks of listed/OTC companies Evaluation adjustment	December 31, 2022	December 31, 2021
	$ 296,395 ( 147,489)	$ 265,238 ( 106,048)
	$ 148,906	$ 159,190

1. The Group categorizes strategic investments and equity instrument investments for stable dividend collection as financial assets at fair value through other comprehensive profit and loss, and the fair values of these investments on December 31, 2022 and 2021 were NT$148,906 and NT$159,190, respectively.

2. The details of the financial assets at fair value through other comprehensive profit and loss recognized in profit or loss and comprehensive profit or loss are as follows:

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2022

2021

2022	2022	2021
Disposal of equity instruments at FVTOCI Changes in fair value recognized in other comprehensive profit or loss ($ 41,365) Accumulated benefits transferred to retained earnings due to delisting $ 76 Dividend income recognized in profit or loss Held at the end of the current period $ 3,334 Delisted during the current period 20 $ 3,354		($ 179,652)
	$ 76	$ 42,041
	$ 3,334 20	$ 11,352 31,072
	$ 3,354	$ 42,424

1. Regardless of the collateral held or other credit enhancements, the most representative of the financial assets held by the Group at fair value through other comprehensive profit and loss. On December 31, 2022 and 2021, the amount of risky exposure with the largest credit risk was NT$148,906 and NT$159,190, respectively.

2. The Group has not provided financial assets at FVTOCI as pledge guarantees.

(IV) Financial assets at amortized cost- Current

cial assets at amortized cost-Current
Time deposits	December 31, 2022 $ 80,000	December 31, 2021
		$ 20,000

1. In 2022 and 2021, the Group's interest income recognized in profit or loss due to financial assets at amortized cost was NT$186 and NT$100 (tabled as "interest income") respectively.

2. Without regard to the collateral held or other credit enhancements, it is the most representative of the financial assets held by the Group at amortized cost. On December 31, 2022 and 2021, the amount of the maximum credit risk exposure was NT$80,000 and NT$20,000, respectively.

3. The Group has not provided financial assets at amortized cost as pledge guarantees.

(V) Notes receivable and net accounts

receivable and net accounts
Notes receivable Accounts receivable	December 31, 2022 $ 19,613 $ 6,062	December 31, 2021
		$ 17,218
		$ 10,671

1. The Group's notes receivable and accounts receivable are not overdue.

2. The Group's notes receivable and accounts receivable balances on December 31, 2022 and 2021 were all due to customer contracts, and the balance of receivables from customer contracts on January 1, 2021 was NT$25,589.

3. The Group has not provided pledge guarantees for bills receivable and accounts.

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1. Regardless of the collateral held or other credit enhancements, the amount of exposure that best represents the maximum credit risk of the Group's notes and accounts receivable on December 31, 2022 and 2021 were NT$25,675 and NT$27,889 respectively.

2. Please refer to Note 12 (2) for the credit risk information of relevant notes receivable and accounts receivable.

(VI) Inventory

tory
Land for construction Project Zhongxiao Mansion Premises for sale Project Emerald Forest Project Smiling Era Building and land under construction Project Zhonghe Chungyuan Project Kuo Yang Intercontinental (previously known as Project Neihu Jiuzong) Project Kuo Yang Digital (previously known as project Sanchong Chunghsing) Project Tucheng Zhongyi Project Xizhi Jiangbei Project Emerald Forest Advance payment for real estate and others Project Emerald Forest Project Xizhi Jiangbei	December 31, 2022 $ 6,601 97,739 58,808 156,547 638,579 384,372 372,755 248,109 197,532 5,164 1,846,511 54,473 3,687 58,160 $ 2,067,819	December 31, 2021
		$ 6,601
		207,853 342,637
		550,490
		319,340 288,952 243,242 6,759
		858,293
		54,473
		54,473
		$ 1,469,857

1. Accounting inventory refers to the share recognized in accordance with the holding ratio of the Group's participation in joint operations. Please refer to Note 6(7) for details.

2. Project Smiling Era is No. 1492 to 1496 of Shengxing Section, Qianzhen District, Kaohsiung City, the "contract for setting of surface rights of state-owned non-public land" signed by "Shenyang Construction Co., Ltd." on April 28, 2014 with the Southern Branch of National Property Administration, MOF, and the duration of surface rights is 70 years (from April 28, 2014 to April 27, 2084), and the premium for surface rights is NT$878,000. The Group started construction in 2015, which was completed in 2018 while the transfer of ownership and right-of-use began, the revenue for the sold part was recognized, and the abovementioned royalties was listed as costs of sales according to the sales ratio.

3. Inventory costs recognized as expenses in 2022 and 2021 by the Group were NT$446,013 and NT$505,266, respectively.

4. The Group's capitalized amounts of interest on inventories in 2022 and 2021 were NT$15,769 and NT$7,015, respectively, and the capitalization rates were 1.80% to 3.00% and 1.80% to

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1.83%, respectively.

1. Please refer to Note 8 for details of the Group’s provision of guarantees for inventories.

(VII) Joint Operation

1. Part of the Group's development and construction projects are joint operations. For the rights and interests of joint operations, the Group recognizes its direct interests (and their shares) in the assets, liabilities, income and expenses of joint operations, and has included them in the consolidated financial report of the applicable items.

2. The information on the joint operation and development projects held by the Group is as follows:

llows:
	Shareholding
Project name	percentage	Co-builder	Description
Project Zhonghe Chungyuan	50%	Weili International Development Co., Ltd.	Zhonghe
		and two other companies	District, New
			Taipei City
Project Smiling Era	30%	State-ownedPropertyAdministration,	Qianzhen
		Ministry of Finance, Southern Taiwan	District,
		Branch, and Shenyang Construction Co.,	Kaohsiung City
		Ltd.
Project Kuo Yang Digital	15%	Kuo Yang Construction Co., Ltd. and three	Sanchong
(previously known as project		other companies	District, New
Sanchong Chunghsing)			Taipei City
Project Kuo Yang	10%	Kuo Yang Construction Co., Ltd. and four	NeihuDistrict,
Intercontinental (previously		other companies	Taipei City
known as Project Neihu
Jiuzong)
Project Tucheng Zhongyi	10%	Kuo Yang Construction Co., Ltd. and four	Tucheng
		other companies	District, New
			Taipei City
Project Emerald Forest	10%	Kuo Yang Construction Co., Ltd. and five	Annan District,
		other companies	Tainan City
Project Xizhi Jiangbei	10%	Kuo Yang Construction Co., Ltd. and three	Xizhi District,
		other companies	New Taipei City

1. The aggregate information on the shares of joint operation held by the Group is as follows:

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				December 31,	December 31,	2022
	Project	Kuo Yang	Project Smiling		Project Emerald
Balance Sheet	Intercontinental			Era		Forest	Other projects
Current assets
Inventory	$	384,372	$	58,808	$	157,376$	1,467,263
Other current assets		9,532		58,904		54,818	45,603
		393,904		117,712		212,194	1,512,866
Non-current assets		20		10,814		3,663	-
Total assets	$	393,924	$	128,526	$	215,857	$1,512,866
Current liabilities
Short-term
borrowings	$	261,178	$	-	$	8,220$	959,527
Short-term notes
payable		-		-		28,762
Other current
liabilities		16,925		45,147		10,625	5,990
		278,103		45,147		47,607	965,517
Non-current
liabilities		-		-		-	775
Total liabilities	$	278,103	$	45,147	$	47,607$	966,292
Statement of
Comprehensive
Income
Income	$	286	$	365,466	$	137,095$	589
Costs	$	-	$	293,814	$	114,199$	-
Expenses	$	255	$	22,758	$	8,570$	625

			December 31,	December 31,	2021
	Project	Kuo Yang Project Smiling		Project Emerald
Balance Sheet	Intercontinental		Era		Forest	Other projects
Current assets
Inventory	$	319,340$	342,637	$	269,085$	538,795
Other current assets		15,073	77,327		45,967	61,316
		334,413	419,964		315,052	600,111
Non-current assets		-	10,807		3,644	-
Total assets	$	334,413$	430,771	$	318,696$	600,111
Current liabilities
Short-term
borrowings	$	237,900$	44,544	$	23,004$	369,920
Short-term notes
payable		-	78,717		63,140	-
Other current
liabilities		539	113,506		22,973	648
		238,439	236,767		109,117	370,568
Non-current liabilities		200	169		1	24
Total liabilities	$	238,639$	236,936	$	109,118$	370,592
Statement of
Comprehensive
Income
Income	$	1,006$	255,689	$	229,372$	148
Costs	$	-$	214,203	$	192,073$	-
Expenses	$	237$	21,113	$	8,944$	239

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(VIII) Investments accounted for using equity method

January 1 Increase in investments using the equity method Investment gains and losses recognized using the equity method Distribution of investment surplus using the equity method Impairment losses on investments using the equity method Changes in capital surplus Changes in other equity December 31 -Affiliate Hanshin Shopping Plaza Co., Ltd. Jollify Creative, Ltd. Jollify4ever Ltd.	2022	2021
	$ 965,501 166,618 ( 89,023) ( 46,403) 7,372 ( 64,426)	$ 664,067 97,444 120,257 - - 134,307 ( 50,574)
	$ 939,639	$ 965,501
	December 31, 2022	December 31, 2021
	$ 885,775 53,864 -	$ 857,907 40,268 67,326
	$ 939,639	$ 965,501

1. Affiliated enterprises

2. (1) The basic information of the major affiliated enterprises of the Group is as follows:

Companyname Principal place of business	Shareholding December 31,2022 17.80%	percentage December 31,2021 17.80%	Nature of relationship Measuremen t method
Hanshin Shopping Plaza Co., Ltd. Taiwan			- Affiliate Equity method

• (2) The consolidated financial information of the Group's major affiliated enterprises is as follows:

Balance Sheet

Hanshin Shopping Plaza Co., Ltd. December 31, 2022 December 31, 2021 Current assets $ 3,524,083 $ 2,134,400 Non-current assets 9,591,348 10,265,305 Current liabilities ( 3,398,335) ( 2,344,090) Non-current liabilities ( 6,464,698) ( 6,952,589) Total netassets $ 3,252,398 $ 3,103,026 Proportion of net assets of affiliated enterprises $ 542,042 $ 514,174 Goodwill 343,733 343,733 Book value of affiliated enterprises $ 885,775 $ 857,907 Statement of Comprehensive Income	Hanshin Shopping Plaza Co., Ltd.	Hanshin Shopping Plaza Co., Ltd.
	December 31, 2022	December 31, 2021
	$ 3,524,083 9,591,348 ( 3,398,335) ( 6,464,698)	$ 2,134,400 10,265,305 ( 2,344,090) ( 6,952,589)
	$ 3,252,398	$ 3,103,026
	$ 542,042 343,733	$ 514,174 343,733
	$ 885,775	$ 857,907

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Hanshin Shopping Plaza Co., Ltd. 2022 2021 Income $ 3,102,720 $ 3,074,114 Net income from continuing operations $ 1,092,767 $ 999,015 Other comprehensive income (net, after tax) ( 338,884) ( 322,909) Total comprehensive income of the current period $ 753,883 $ 676,106	Hanshin Shopping Plaza Co., Ltd.	Hanshin Shopping Plaza Co., Ltd.
	2022	2021
	$ 3,102,720	$ 3,074,114
		$ 999,015 ( 322,909)
	$ 753,883	$ 676,106

• (3) On December 31, 2022 and 2021, the book value of individual insignificant affiliated enterprises of the Group was NT$53,864 and NT$107,594 respectively, and the share of their operating results is summarized as follows:

Net loss from continuing operations Other comprehensive income (net, after tax) Total comprehensive income of the current period	2022	2021
	($ 10,594) ( 4,105)	($ 40,851) 5,069
	($ 14,699)	($ 35,782)

1. In 2022, the Group assessed that the investment in Jollify4ever Ltd. using the equity method had been impaired, so it recognized an impairment loss of NT$46,403 and listed it in "Other Gains and Losses".

2. Jollify Creative, Ltd. handled a cash capital increase in September 2022. The Company did not participate in the subscription according to the shareholding ratio, and hence the shareholding ratio of Jollify Creative, Ltd. decreased from 46.83% to 37.46%. The Company is the largest single shareholder of that company. Since other shareholders (non-related persons) have signed a shareholder agreement, it shows that the company has no actual ability to lead relevant activities, so it is judged that it has no control over the company and only has a significant influence.

3. Jollify4ever Ltd. was split and reduced its capital by resolution of the extraordinary shareholders’ meeting in November 2021. Jollify4ever Ltd. split the business value of $80,000 to the newly established Jollify Creative, Ltd., and held it according to the shareholding ratio of the original shareholders. Therefore, the Group acquired 46.83% of equities of Jollify Creative, Ltd., making it the largest single shareholder of the company, because other shareholders (non-related parties) have signed a shareholder agreement, which shows that the Group has no actual ability to lead relevant activities, so it is deemed that it has no control over the company and only has a significant influence.

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(IX) Property, plants, and equipment

1. The details are as follows:

January 1 Costs Accumulated depreciation and impairment January 1 Depreciation expense December 31 December 31 Costs Accumulated depreciation and impairment January 1 Costs Accumulated depreciation and impairment January 1 Depreciation expense Disposal December 31 December 31 Costs Accumulated depreciation and impairment		2022	2022
	Land $ 61 - $ 61 $ 61 - $ 61 $ 61 - $ 61	Houses and buildings	Office equipment $ 1,537 ( 1,420) $ 117 $ 117 ( 25) $ 92 $ 1,537 ( 1,445) $ 92	Total
		$ 310 ( 296)		$ 1,908 ( 1,716)
		$ 14		$ 192
		$ 14 -		$ 192 ( 25)
		$ 14		$ 167
		$ 310 ( 296)		$ 1,908 ( 1,741)
		$ 14		$ 167
		2021
	Land $ 61 - $ 61 $ 61 - - $ 61 $ 61 - $ 61	Houses and buildings	Office equipment $ 3,652 ( 2,580) $ 1,072 $ 1,072 ( 230) ( 725) $ 117	Total
		$ 310 ( 296)		$ 4,023 ( 2,876)
		$ 14		$ 1,147
		$ 14 - -		$ 1,147 ( 230) ( 725)
		$ 14		$ 192
		$ 310 ( 296) $ 14	$ 1,537 ( 1,420) $ 117	$ 1,908 ( 1,716)
				$ 192

1. No guarantees are provided for the Group's property, plant and equipment.

2. Due to the trust contract entered into with the bank, the ownership of the Group's land,

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buildings and buildings is registered in the name of the bank.

• (X) Lease transactions - Lessee

• The underlying assets leased by the Group are office equipment and transportation equipment, and the lease contract period is usually 3 years. Lease contracts are negotiated individually and contain various terms and conditions. Except that the leased assets may not be used as loan guarantees, no other restrictions are imposed.

• The book value of the right-of-use assets and the information of recognized depreciation expenses are as follows:

expenses are as follows:
Office equipment Transportation equipment Office equipment Transportation equipment	December 31, 2022 Book value $ 13 90 $ 103 2022 Depreciation expense $ 33 361 $ 394	December 31, 2021
		Book value
		$ 46 451
		$ 497
		2021
		Depreciation expense
		$ 33 361
		$ 394

1. The increase in the Group's right-of-use assets in 2022 and 2021 both amounted to NT$0.

2. The information of income items related to lease contracts is as follows:

Items affecting current profit and loss Interest expense of lease liabilities - investment property Interest expense of lease liabilities - right-of-use assets Expenses of short-term lease contracts	2022 $ 2,369 7 2,257	2021
		$ 2,591 14 2,244

1. The total cash outflow for leases of the Group in 2022 and 2021 amounted to NT$6,252 and NT$6,236, respectively.

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(XI) Investment property

nt property
January 1 Depreciation expense Remeasurement December 31 January 1 Depreciation expense December 31		2022
	Land $ 72,160 - - $ 72,160	Houses and buildings	Land use right assets	Total
		$ 710,841 ( 18,157) -	$ 118,575 ( 3,087) 6,717	$ 901,576 ( 21,244) 6,717
		$ 692,684	$ 122,205	$ 887,049
	Land $ 72,160 - $ 72,160	Houses and buildings	Land use right assets	Total
		$ 728,998 ( 18,157)	$ 121,497 ( 2,922)	$ 922,655 ( 21,079)
		$ 710,841	$ 118,575	$ 901,576

1. Land use rights

On July 10, 2018, Hanlin Development signed a contract with Jimei Construction Co., Ltd. for the purchase of the land rights of its building and land located in Section 4, Minsheng East Road, Songshan District, Taipei City, Taiwan. This right is the "Contract for the Creation of Surface Rights over State-Owned Non-communal Land" signed with the North District Branch of the State-owned Property Administration, Ministry of Finance under Land Nos. 115-3 and 115-10, Minsheng Section, Songshan District, Taipei City, and the surface rights will last for 50 years ( from August 8, 2012 to August 7, 2062).

1. Rent income and direct operating expenses of investment property:

Rental income from investment real estate Direct operating expenses incurred in the investment real estate generating rental income in the current period Direct operating expenses incurred in the investment real estate not generating rental income in the current period	2022 $ 51,672 $ 20,848 $ 2,530	2021
		$ 49,333
		$ 20,712
		$ 2,533

1. The fair values of the investment real estate held by the Group on December 31, 2022 and 2021 were NT$1,989,669 and NT$1,935,266, respectively, which were based on the recent transaction prices of comparable similar targets in the area where the investment real estate is located and based on independent Evaluation results of evaluation experts.

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The determination of the fair price is based on property rights, regional factors, current real estate market conditions, and survey and evaluation targets. The evaluation adopts the comparative method and the income method, which belongs to the third level of fair value. The main assumption is that the income capitalization rate is 1.20% to 1.50%.

1. Please refer to Note 8 for details of the guarantee provided by the Group with investment real estate.

(XII) Borrowings

1. Short-term loans

ngs . Short-term loans
Nature of loan Bank loans Secured loans Credit loans Nature of loan Bank loans Secured loans	December 31, 2022 $ 1,205,647 113,278 $ 1,318,925 December 31, 2021 $ 675,368	Interest rate range	Collaterals
		2.425%~2.635% 2.425%~2.525% Interest rate range 1.80%~2.40%	Please refer to Note 8 None Collaterals
			Please refer to Note 8

• (1) Partially secured borrowings presented in the book refer to the share recognized by the Group in the joint operation according to the percentage of shareholding. Please refer to the descriptions in Note 6(7).

• (2) The interest expenses recognized in profit or loss in 2022 and 2021 were NT$8,797 and NT$10,284, respectively.

(XIII) Short-term notes payable

and NT$10,284, respectively. m notes payable
Short-term notes payable Less: Discount of short-term notes payable Net amount Interest rate range	December 31, 2022	December 31, 2021 $ 141,910 ( 52) $ 141,858 0.31%~0.85%
	$ 28,800 ( 38)
	$ 28,762
	1.3%

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- (XIV) Long term borrowings

erm borrowings	erm borrowings	erm borrowings
Nature of loan Duration and repayment method Interest rate Collaterals			December 31, 2022 $ 406,000 406,000 ( 16,000) $ 390,000 December 31, 2021
Secured loans From February23, 2022 to February23, 2039, interest is paid on the 23rd of each month in three-month installments of NT$4,000 thousands and the remaining balance is paid in a lump sum. 2.125%Please refer to Note 8 Less: Long-term borrowings duewithinone year or one business cycle Nature of loan Duration and repayment method Interest rate Collaterals Secured loans From September 20, 2018 to September 20, 2038, the interest is paid on a monthly basis from the date of appropriation, with an instalment of NT$4,000 thousand every 3 months. The principal was repaid early on February 23, 2022. 1.85%Please refer to Note 8 Less: Long-term borrowings duewithinone year or one business cycle
	1.85%	Please refer to Note 8	$ 418,000
			418,000 ( 418,000)
			$ -

(XV) Pension

Since July 1, 2005, the Company and its domestic subsidiaries have established a defined retirement contribution allocation policy in accordance with the "Labor Pension Act," which is applicable to domestic employees. The Company and its domestic subsidiaries shall contribute 6% of their monthly salaries into individual accounts held by the Bureau of Labor Insurance for employees who elect to apply the labor pension system under the "Labor Pension Act". Depending on the amount of the personal pension account and the accumulated income, the pension will be paid on a monthly basis or in lump sum.

In 2022 and 2021, the Group recognized pension cost amounting to NT$635 and NT$584, respectively, in accordance with the above regulations governing the recognition of pension fund.

(XVI) Share capital

As of December 31, 2022 and 2021, the Company's authorized capital was NT$1,100,000, which was divided into 110,000 thousand shares and issued in tranches. The paid-in capital was NT$920,000, and the par value was NT$10 per share. The payment for the shares issued by the Company has been received.

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(XVII) Capital surplus

1. According to the requirements of IFRS Questions and Answers, Letter (95) Ji-Mi-Zi No. 081 and Letter (100) Ji-Mi-Zi No. 390 published by the Accounting Research and Development Foundation on October 26, 2018, the acquisition of the Company's shares in Hanlin Development, a subsidiary of the ultimate parent company, is considered an organizational reorganization under common control as described in Note 4, (3) 2. The consideration paid by the Company exceeds the ultimate parent company's book value of the investment under the equity method, and capital surplus-issuance premium shall be adjusted. If the capital surplus-issuance premium is insufficient, the retained earnings shall be adjusted down.

2. According to the Company Act, in addition to the surplus from the issuance of shares in excess of the par value and from the capital surplus from the receipt of gifts, which may be used to make up for losses, the Company shall pay dividends, in which case new shares or cash may be issued, in proportion to the original shares when the Company has no accumulated losses. new shares or cash. In addition, according to the relevant regulations of the Securities and Exchange Act, the total amount of the above-mentioned capital surplus to be appropriated as capital may not exceed 10% of the paid-in capital each year. The Company may not use the surplus reserve to supplement the capital deficit, except when there is insufficient surplus reserve to cover the capital deficit.

Treasury stock trading Impact of organizational reorganization Disposal of equity instruments at FVTOCI by affiliates Changes in thenetequity value of affiliates Others	December 31, 2022 $ 8,516 30,461 11,286 132,421 170 $ 182,854	December 31, 2021
		$ 8,516 - 11,286 125,049 170
		$ 145,021

(XVIII) Retained earnings

1. According to the Articles of Incorporation, annual surpluses concluded by the Company are first subject to taxation and making up for previous losses, followed by a 10% provision for legal reserves; however, no further provision is needed when legal reserves have accumulated to the same amount as the Company's paid-in capital. Any surpluses remaining shall then be subject to provision or reversal of special reserves, as the laws. The residual balance (if any) can then be added to undistributed earnings carried from previous years per board resolution, and the shareholder meeting resolved to distribute shareholder bonus shares.

2. On June 23, 2022, the shareholders' meeting approved the amendment to the Company's

~48~

Articles of Association. According to the surplus distribution policy of the Company's Articles of Association, profit distribution or loss compensation can be carried out after the end of each year in accordance with the Company Act. When distributing surplus, it is necessary to estimate and retain tax payables, make up for losses according to law, set legal reserves, and transfer or reverse special reserves in accordance with relevant laws and regulations. When the distribution of earnings in this item is made by issuing new shares, it shall be subject to a resolution of the shareholders' meeting in accordance with Article 240 of the Company Act; if it is distributed in cash, it shall be subject to a resolution of the board of directors.

1. The Company's dividend distribution policy depends on factors such as the company's current and future investment environment, capital needs, domestic and foreign competition conditions, and capital budgets, taking into account the interests of shareholders, balancing dividends, and the company's long-term financial planning. Dividends shall be distributed in combination, of which cash dividends shall not be less than 20% of the total dividends.

2. According to the Company Act, the legal reserve shall be contributed until its total amount reaches the total capital. The legal reserve shall not be used except to make up for the company's losses and to issue new shares or cash in proportion to the shareholders' original shares. However, the issuance of new shares or cash shall be limited to the portion of the reserve exceeding 25% of the paid-in capital.

3. When the Company distributes surplus, according to the laws, the debit balance of other equity items on the balance sheet date of the current year shall be withdrawn as a special reserve for distribution. When the debit balance of other equity items is subsequently reversed, the reversed amount may be included in the distributable surplus.

4. When adopting IFRSs for the first time, the special surplus reserve was listed in the official letter Jin Guan Zheng Fa Zi No. 1010012865 issued on April 6, 2012. When the Company subsequently uses, disposes or reclassifies the relevant assets, it will reverse the original proportion of the special reserve.

5. On August 12, 2021, the shareholders’ meeting of the Company resolved not to distribute surplus for 2020. On June 23, 2022, the shareholders' meeting resolved to distribute surplus for 2021 as follows:

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Legal reserve Cash dividends	2021	2021
	Amount $ 15,236 18,400	Dividend per share (NT$)
		$ 0.20

1. On March 27, 2023, the Group's 2022 surplus distribution proposed by the board of directors is as follows:

directors is as follows:
Legal reserve Special reserves Cash dividends	2022 Amount Dividend per share (NT$) $ 7,337 204,188 27,600 $ 0.03
		Dividend per share (NT$)
		$ 0.03

(XIX) Other equity items

equity items
January 1 Evaluation adjustment: -The Group -Affiliated enterprises Transfer of evaluation adjustments to retained earnings: -The Group -Affiliated enterprises December 31	2022 Unrealized gains and losses on financial assets at FVTOCI ($ 117,229) ( 41,365) ( 65,122) ( 76) 19,604 ($ 204,188)	2021
		Unrealized gains and losses on financial assets at FVTOCI
		$ 133,334 ( 179,652) ( 39,192) ( 42,041) 10,322
		($ 117,229)

(XX) Revenue

Revenue from customer contracts Product sales revenue Revenue from construction projects Subtotal Lease revenue Other operating Income	2022 $ 14,780 502,330 517,110 52,778 265 $ 570,153	2021 $ 75,283 483,134 558,417 52,414 4,704 $ 615,535

1. The revenue of the Group's customer contracts comes from goods transferred at a certain

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point in time, or services that are gradually transferred over time. The revenue may be broken down according to the type of operation as follows. Please refer to Note 14 for detailed breakdown of revenue by operating department.

2022 Time for revenue recognition Revenue recognized at a point in time Revenue recognized over time 2021 Time for revenue recognition Revenue recognized at a point in time Revenue recognized over time	Product sales $ 14,780 - $ 14,780 Product sales $ 75,283 - $ 75,283	Constructio n projects sales $ 502,330 - $ 502,330 Constructio n projects sales $ 483,134 - $ 483,134	Lease $ - 52,778 $ 52,778 Lease $ - 52,414 $ 52,414	Others $ - 265 $ 265 Others $ - 4,704 $ 4,704	Total
					$ 517,110 53,043
					$ 570,153
					Total
					$ 558,417 57,118
					$ 615,535

1. For the sales contracts entered into by the Group as of December 31, 2022, the aggregate amount of the transactions amortized from the performance obligations that have not yet been met and the estimated revenue for the year are as follows:

The year expected to be recognized as revenue 112~114	Amount of contract entered into
	$ 109,589

1. Contract assets and liabilities

The contractual liabilities related to the contract revenue recognized by the Group are as follows:

December 31, 2022 Contract liabilities - current: - Advance payment for land $ 1,485 - Prepaid housing payment 30,213 $ 31,698	December 31, 2021 $ 2,804 57,374 $ 60,178	January 1, 2021 $ 20,861 38,789 $ 59,650

• (1) The Group's contract for the sale of pre-sale houses contains the terms of advance payment from customers, and the time interval between the time of advance receipt and the transfer of commodity control is longer than one year. Recognize contract

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liabilities related to pre-sale house contracts according to the requirements of IFRS 15.

• (2) Revenue recognized from contract liabilities at the beginning of the year

Balance of contract liabilities at the beginning of the year Recognized as income Pre-sale contract for construction projects	2022 $ 57,481	2021
		$ 55,281

(XXI) Interest income

come
Interest on bank deposit Interest income from financialassets at amortized cost Other interest income	2022 $ 2,097 186 1,455 $ 3,738	2021
		$ 1,896 100 1,684
		$ 3,680

(XXII) Other income

ncome
Dividend income Other income - others	2022 $ 3,354 7,647 $ 11,001	2021
		$ 42,424 2,593
		$ 45,017

(XXIII) Other gains and losses

ains and losses
2022 Foreign exchange gain $ 2,835 Gains on financial assets at FVTPL - Loss from disposal of investment - Impairment losses on investments using the equity method ( 46,403) Other gains and losses ( 4,940) ($ 48,508)	2022	2021
		$ 172 2,206 ( 233) - ( 10,738)
	($ 48,508)	($ 8,593)

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(XXIV) Financial cost

al cost
Interest expense Bank loans Short-term notes payable Interest on lease liabilities Others Less: Capitalization ofassetsthat meet the criteria	2022	2021
	$ 24,445 435 2,376 177	$ 17,299 815 2,605 5
	27,433 ( 15,769)	20,724 ( 7,015)
	$ 11,664	$ 13,709

(XXV) Additional Information on Nature of Expenses

Employee welfare expenses Depreciation expense Employee welfare expenses Depreciation expense Amortization expense		2022
	Attributable to operating costs $ - 18,157 $ 18,157	Attributable to operating expenses $ 21,577 3,506 $ 25,083 2021	Total
			$ 21,577 21,663
			$ 43,240
	Attributable to operating costs $ - 18,157 - $ 18,157	Attributable to operating expenses $ 21,797 3,546 6 $ 25,349	Total
			$ 21,797 21,703 6
			$ 43,506

(XXVI) Employee welfare expenses

e welfare expenses
Salary expenses Labor and health insurance premiums Pension expense Other employee expenses Director Compensation	2022 $ 10,903 1,140 635 770 8,129 $ 21,577	2021
		$ 10,953 1,124 584 833 8,303
		$ 21,797

1. According to the Company's Articles of Incorporation, the Company shall appropriate

0.5%~5% of the balance as the remuneration to employees, and no more than 0.2% to

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the remuneration to Directors, after deducting the accumulated losses based on the current profit status of the Company.

1. The remuneration to employees was estimated at NT$559 and NT$683 in 2022 and 2021, respectively; the remuneration to directors was estimated at $559 and $ 683.

2. The remuneration of employees and remuneration of directors 2022 is estimated according to the profits of the current period and in accordance with the Articles of Incorporation.

The remuneration to employees and directors was approved by the Company's Board of Directors on March 23, the amounts were consistent with the recognized amounts in the 2021 financial report.

Information on remuneration to employees and directors approved by the Company's Board of Directors is available on the Market Observation Post System.

(XXVII) Income Tax

1. Income tax expenses

Components of income tax expense:

2022 Current income tax: Income tax on current income $ 7,028 Additional tax on undistributed earnings 7,773 Underestimation of income tax in previous years 40 Income tax subject to minimum tax liability - Land appreciation tax included in current income tax 812 Total income tax for the period 15,653 Deferred income tax: The original generation and reversal of temporary difference 2,791 Income tax expenses $ 18,444	2021
	$ 1,074 - 7,133 4,134 203
	12,544
	427
	$ 12,971

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1. Relationship between income tax expenses and accounting profit

Income tax on net profit before tax calculated at statutory tax rate Income exempted from taxation under the Tax Act Additional tax on undistributed earnings Deferred income tax assets for unrecognized taxation losses Underestimation of income tax in previous years Income tax effect of taxable loss Land appreciation tax included in current income tax Income tax effect under minimum tax system Income tax expenses	2022	2021
	$ 48,023 ( 44,914) 7,773 6,710 40 - 812 -	$ 42,178 ( 45,884) - 5,236 7,133 ( 29) 203 4,134
	$ 18,444	$ 12,971

1. The amounts of deferred income tax assets or liabilities arising from temporary differences and taxation losses are as follows:

January 1 Deferredincome tax assets Unrealized expenses $ 2,236 Unrealized exchange loss 57 Impairment loss of investment property 338 $ 2,631 Deferredincome taxliabilities Unrealized exchange gain - Gains on valuation of financial assets ( 13) ($ 13)	January 1	2022 Recognized in profit or loss Recognized in other comprehensiv e net income ($ 2,236) $ - (57) - - - ($ 2,293) $ - ( 511) - 13 - ($ 498) $ -	2022 Recognized in profit or loss Recognized in other comprehensiv e net income ($ 2,236) $ - (57) - - - ($ 2,293) $ - ( 511) - 13 - ($ 498) $ -	December 31
	$ 2,236 57 338	($ 2,236) (57) -	$ - - -	$ - - 338
	$ 2,631	($ 2,293)	$ -	$ 338
		( 511) 13	- -	( 511) -
	($ 13)	($ 498)	$ -	($ 511)

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2021

January 1 Deferredincome tax assets Unrealized exchange loss $ 90 Unrealized expenses 2,629 Impairment loss of investment property 338 $ 3,057 Deferredincome taxliabilities Gains on valuation of financial assets ( 13) $ 3,044	Recognized in profit or loss	Recognized in other comprehensiv e net income	December 31
	($ 34) ( 393) - ($ 427) - ($ 427)	$ - - -	$ 56 2,236 338
		$ -	$ 2,630
		-	( 13)
		$ -	$ 2,617

1. The effective periods of the Group’s unused tax losses and the related amounts of unrecognized deferred income tax assets are as follows:

December 31, 2022

Year of occurrence 2018 2020 2021 2022	Amount reported/authoriz ed $ 59,130 37,594 26,178 33,276 $ 156,178	Amount yet to be offset $ 24,080 37,594 26,178 33,276 $ 121,128	Amount of unrecognized deferredincome tax assets $ 24,080 37,594 26,178 33,276 $ 121,128	Last crediting year
				2028 2030 2031 2032

		December 31, 2021	December 31, 2021
Year of occurrence 2018 2020 2021	Amount reported/authorize d $ 59,130 37,594 26,178 $ 122,902	Amount yet to be offset $ 24,080 37,594 26,178 $ 87,852	Amount of unrecognized deferred income tax assets $ 24,080 37,594 26,178 $ 87,852	Last crediting year
				2028 2030 2031

1. Deductible temporary differences not recognized as deferred income tax assets

Deductible temporary difference	December 31, 2022 $ 121,221	December 31, 2021
		$ 87,944

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1. The income tax for the profit-seeking business of the Company has been approved by the tax collection authority up to 2020.

(XXVIII) Earnings per share

ngs per share
Basic earnings per share		2022
	After-tax amount $ 92,205 13,190 $ 105,395 $ 92,205 13,190 - $ 105,395	Weighted average outstanding shares (thousand shares) 92,000 - 92,000 92,000 - - $ 92,000	Earnings per share (NTD)
			$ 1.00 0.14
Net income attributable to common stock shareholders of the parent company Owner of parent company Equity owned by the previous holder under the joint control Net income attributable to common shareholders Diluted earnings per share Net income attributable to common stock shareholders of the parent company Owner of parent company Equity owned by the previous holder under the joint control Effect of potential dilutive common stock Employee remuneration Current shareholding attributable to common stock shareholders of the parent company Effect of net income plus potential common stock
			$ 1.14
			$ 1.00 0.14 -
			$ 1.14

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Basic earnings per share Net income attributable to common stock shareholders of the parent company Owner of parent company Equity owned by the previous holder under the joint control Net income attributable to common shareholders Diluted earnings per share		2021
	After-tax amount $ 128,274 12,928 $ 141,202 $ 128,274 12,928 - $ 141,202	Weighted average outstanding balance Outstanding shares (thousand shares) 92,000 - 92,000 92,000 - 29 92,029	Earnings per share (NTD)
			$ 1.39 0.14
			$ 1.53
			$ 1.39 0.14 -
Net income attributable to common stock shareholders of the parent company Owner of parent company Equity owned by the previous holder under the joint control Effect of potential dilutive common stock Employee remuneration Current shareholding attributable to common stock shareholders of the parent company Effect of net income plus potential common stock
			$ 1.53

(XXIX) Organizational reorganization

1. In order to integrate and enhance the development resources for the rental and sale business and real estate business, on August 10, 2022, the Board of Directors resolved to acquire a 33% equity of Hanlin Development from the ultimate parent company, Hanshen Asset Management Co., Ltd. The business scope is investment in real estate, residential building. On August 26, 2022, the Board of Directors of Hanlin Development was elected by the interim extraordinary meeting and obtained a majority of the seats, gained control.

2. Therefore, the equity transaction is a reorganization under common control, and the book value method was adopted for the accounting treatment. The consideration paid and the book value of the net assets acquired by Hanlin Development on the transaction base date are as follows:

Acquisition cost $ 231,000
Less: Book value of net assets acquired ( 261,461)
Difference: Adjusted additional paid-in capital ($ 30,461)
3. The equity owned by the previous holder under the joint control recognized by the
Company due to the organizational reorganization on December 31, 2022 and
December 31, 2021 was NT$0 and NT$347,601, respectively, based on the financial
statements of investees audited by the CPAs for the same periods.

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1. As of August 26, 2022, the Company recognized a balance of NT$261,461 in "equity owned by the previous holder under the joint control" attributable to Hanshin Asset Management Co., Ltd. This amount was written off upon completion of the above transaction.

(XXX) Changes in liabilities from financing activities

January 1 Changes in cash flow from financing Interest expenses paid (Note) Other non-cash changes December 31 January 1 Changes in cash flow from financing Interest expenses paid (Note) Other non-cash changes December 31			2022	2022
	Short-term borrowings $ 675,368 643,557 - - $ 1,318,925	Short-term notespayable	Lease liabilities	Long-term borrowings	Deposits received	Total liabilities from financing activities
		$ 141,858 (113,096) - -	$ 122,840 ( 1,619) ( 2,376) 8,158	$ 418,000 ( 12,000) - -	$ 7,159 ( 217) - -	$ 1,365,225 516,625 ( 2,376) 8,158
		$ 28,762	$ 127,003	$ 406,000	$ 6,942	$ 1,887,632
	Short-term borrowings $ 282,086 393,282 - - $ 675,368	Short-term notespayable	Lease liabilities	Long-term borrowings	Deposits received	Total liabilities from financing activities
		$ 407,760 (265,902) - -	$ 125,124 ( 1,387) ( 2,605) 1,708	$ 434,000 ( 16,000) - -	$ 7,773 82 - ( 696)	$ 1,256,743 110,075 ( 2,605) 1,012
		$ 141,858	$ 122,840	$ 418,000	$ 7,159	$ 1,365,225

Note: Cash flow from operating activities is presented in the table.

VII. Related party transactions

(I) Names of related parties and their relationship

Name of related party Relationship with the Group Management Co., Ltd. The Company's ultimate parent company Other related parties Other related parties Other related parties Other related parties Other related parties

Hanshin Asset Management Co., Ltd. Hanshin Department Store Co., Ltd. Liyang Agricultural Technology Co., Ltd. Hanshen Investment Co., Ltd. Huadi Asset Management Co., Ltd. Grand Hi-Lai Hotel Co., Ltd.

(II) Material transactions with related parties

1. Administrative expenses

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Ultimate parent company Other related party - Hanshin Department Store Co., Ltd.

2. Accounts receivable

Ultimate parent company

2022 $ 2,316 23 $ 2,339 December 31, 2022 $ 377	2021 $ 2,316 23 $ 2,339
	December 31, 2021 $ 377

3. Other receivables

Ultimate parent company Other related parties - Grand Hi-Lai Hotel Co., Ltd. Other related parties - Liyang Agricultural Technology Co., Ltd.

4. Deposits received

Ultimate parent company

5. Accounts payable

Ultimate parent company

December 31, 2022 $ - - - $ - December 31, 2022 $ 404 December 31, 2022 $ 9,769	December 31, 2021
	$ 207 2,956 50
	$ 3,213
	December 31, 2021
	$ 404
	December 31, 2021
	$ 9,769

6. Loaning of funds to related parties

Loans to related parties

(1) balance at the end of period

Ultimate parent company Other related parties - Liyang Agricultural Technology Co., Ltd.	December 31, 2022 $ - - $ -	December 31, 2021 $ 150,000 30,000 $ 180,000

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(2) Interest income

nterest income
Ultimate parent company Other related parties - Liyang Agricultural Technology Co., Ltd. Other related party - Huadi Asset Management Co., Ltd. Other related party - Hanshen Investment Co., Ltd.	2022 $ 39 6 92 1,319 $ 1,456	2021
		$ 459 1,225 - - $ 1,684

7. Others

• (1) On July 15, 2021, the Company entered into a joint investment and development contract with Weili International Development Co., Ltd., Guo Yang Construction Co., Ltd., Hanshen Asset Management Co., Ltd., and Grand Hi-Lai Hotel Co., Ltd. for 9 pieces of land including No. 28, Zhongxing Section, Sanchong District, with a total area of 1,828.28 pings, with Guo Yang Construction Co., Ltd. acting as the manager of the project according to the contract. The investment ratio was 15% by the Company, 10% by Weili International Development Co., Ltd., 50% by Guo Yang Construction Co., Ltd., 10% by Hanshen Asset Management Co., Ltd., and 15% by Grand Hi-Lai Hotel Co., Ltd..

• (2) On November 23, 2020, the Company entered into a joint investment and development contract with Weili International Development Co., Ltd., Guo Yang Construction Co., Ltd., Hanshen Asset Management Co., Ltd., Liyang Agricultural Technology Co., Ltd. and Grand Hi-Lai Hotel Co., Ltd. for 4 pieces of land including 83-1, Jiuzong Section, Neihu District, Taipei City, with a total area of 2,127.33 pings. Guo Yang Construction Co., Ltd. was the manager of the project according to the contract. 10% of the investment was by the Company, 50% by Guo Yang Construction Co., Ltd., and 10% by all other companies.

• (3) On January 28, 2021, the Company entered into a joint investment and development contract with Weili International Development Co., Ltd., Guo Yang Construction Co., Ltd., Hanshen Asset Management Co., Ltd., Liyang Agricultural Technology Co., Ltd. and Grand Hi-Lai Hotel Co., Ltd. for 19 pieces of land including Lot No. 365, Zhongyi Section, Tucheng District, New Taipei City, with a total area of 5,344.27 pings. Guo Yang Construction Co., Ltd. was the manager of the project according to the contract. 10% of the investment was by the Company, 50% by Guo Yang Construction Co., Ltd., and 10% by all other companies. Subsequently, on June 29, 2021, "Grand Hi-Lai Hotel Co., Ltd." withdrew from the project. The original holding ratio was changed to Hanshin Asset Management Co., Ltd. effective on July 1, 2021.

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• (4) On June 29, 2012, Guo Yang Construction Co., Ltd. and Weili International Development Co., Ltd. signed a joint investment and development agreement for joint development and construction of a residential complex on the land held by Taiwan Sugar Corporation at Lot 24, Hetuan Section, Annan District, Tainan City (77,479.53 square meters). Subsequently, a management letter was signed, which entrusted Guo Yang Construction Co., Ltd. to take charge of the overall development plan, architectural planning, construction and sales of collective housing. Weili International Development Co., Ltd. is the representative of the project and executed the Project in accordance with the contract signed with Taiwan Sugar Corporation, and acted as the organizer of the Project, coordinating as the selling company (issuing sales invoices) for the sale of premises and as the purchasing company (issuing certificates) for the purchase of goods or services, and is responsible for the settlement of the Project. Subsequently, the "Joint Development Supplementary Agreement" was signed on March 15, 2016 to change the capital contribution and settlement distribution ratio to the Company's subsidiaries. After change, the ratios of Hanlin Development, Weili International Development Co., Ltd., Feminine Co., Ltd., Zu Sheng International Co., Hanshen Asset Management Co., Ltd., Crowell Development Corp., and Kuo Yang Construction Co., Ltd. were 5%, 6%, 1.5%, 4%, 13.5%, 10%, and 60%, respectively. Subsequently, Crowell Development Corp. withdrew from the project on July 15, 2019. The "Joint Development Supplementary Agreement" was signed on with Weili International Development Co., Ltd. to change the capital contribution and settlement distribution ratio to the Company's subsidiaries. After change, the ratios of Hanlin Development, Weili International Development Co., Ltd., Feminine Co., Ltd., Zu Sheng International Co., Hanshen Asset Management Co., Ltd., and Kuo Yang Construction Co., Ltd. were 10%, 6%, 1.5%, 4%, 13.5%, and 65%, respectively.

• (5) On August 11, 2022, the Company and its subsidiary, Hanlin Development Co., Ltd., entered into a joint investment and development contract with Guo Yang Construction Co., Ltd., Weili International Development Co., Ltd., and Shenyang Construction Co., Ltd. for 12 pieces of land, with an area of 2,259,85 pings, including Lot 258, Zhongyuan Section, Zhonghe District, New Taipei City. Its investment ratio includes the Company (40%), Hanlin Development (10%), Shenyang Construction Co., Ltd. (40%), and Weili International Development Co., Ltd. (10%).

• (6) On July 4, 2022, the Company’s subsidiary, Hanlin Development Co., Ltd., entered into a joint investment contract with Weili International Development Co., Ltd., Guo Yang Construction Co., Ltd., Grand Hi-Lai Hotel Co., Ltd., Hanshen Asset Management Co., Ltd., and Grand Hi-Lai Hotel Co., Ltd., and Hanshin Shopping Plaza Co., Ltd. for 29 pieces of land including Lot 895, Jiangbei Section, Shih Chi District, New Taipei City, with a total area of 5,531.35 pings, with Guo Yang Construction Co., Ltd. acting as the

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manager of the project according to the contract. The investment ratio was 10% by Hanlin Development Co., Ltd., 50% by Guo Yang Construction Co., Ltd., 20% by Weili International Development Co., Ltd., 10% by Grand Hi-Lai Hotel Co., Ltd., and 10% by Hanshin Shopping Plaza Co., Ltd.

• (7) On June 3, 2016, the Company's subsidiary, Hanlin Development, entered into a joint investment and development contract with Shenyang Construction Co., Ltd. for the land rights for 5 pieces of land, including No. 1492 of Shengxing Section, Qianzhen District, Kaohsiung City, with an area of 11,411 square meters. Its investment ratio is 30% by Hanlin Development and 70% by Shenyang Construction Co., Ltd.

• (8) On April 15, 2019, the Company's subsidiary, Hanlin Development, entered into a joint investment and development contract with Weili International Development Co., Ltd., Liyang Agricultural Technology Co., Ltd., Goldshare Investment Corporation, Xueyong Co., Ltd., and Jinzan Industrial Co., Ltd. for 6 pieces of land, including 33, 34, 35-1, 36, 39 and 42 in Baoyuan Section, Xindian District, New Taipei City., with an area of 1,332 pings. The investment ratio was 20% by Hanlin Development Co., Ltd., 20% by Weili International Development Co., Ltd., 25% by Liyang Agricultural Technology Co., Ltd., 15% by Goldshare Investment Corporation, 15% by Xueyong Co., Ltd., and 5% by Jinzan Industrial Co., Ltd.

(III) Remuneration of key management personnel

Short-term employee benefits	2022 $ 10,331	2021
		$ 13,868

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VIII.Assets collateralized (pledged)

The details of collateral for the Group's assets are as follows:

Assets Inventory Other financial assets - current (restricted deposits) Investment property Other financial assets - non- current (time deposits)	Bookvalue December 31, 2022 December 31, 2021 $ 1,825,985 $ 1,283,993 96 98 635,406 651,492 4,766 37,378 $ 2,466,253 $ 1,972,961	Purpose of guarantee
	December 31, 2022 $ 1,825,985 96 635,406 4,766 $ 2,466,253
		Short-term borrowings and short-term notes payable Performance bond and provisions account Long-term borrowings Performance bond and provisions account

IX. Significant contingent liabilities or unrecognized contractual commitments

As of December 31, 2022, the total cost of construction contracts entered into between the Group and non-related parties amounted to NT$185,070, and the amount signed but yet to be paid amounted to NT$159,691.

X. Losses from major disasters

None.

XI. Subsequent events

None.

XII. Others

(I) Capital management

The Group's capital management objective is to maintain a sound credit rating and a good capital ratio to support corporate operations and maximize shareholders' equity. The Group manages and adjusts the capital structure according to the economic situation, and may achieve the purpose of maintaining and adjusting the capital structure by adjusting the payment of dividends, returning capital or issuing new shares.

(II) Financial instruments

1. Types of financial instruments

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December 31, 2022 Financial assets Financial assets at FVTPL Financial assets mandatorily at FVTPL $ 86,000 Financial assets at FVTOCI Investment in designated equity instruments $ 148,906 Financial assets at amortized cost Cash and cash equivalents $ 521,760 Financial assets at amortized cost 80,000 Notes receivable 19,613 Accounts receivable (including related parties) 6,439 Other receivables (including related parties) 24,346 Other financial assets - current 96 Deposits received 10,139 Other financial assets - non-current 4,766 $ 667,159 Financial liabilities Financial liabilities at amortized cost Short-term borrowings $ 1,318,925 Short-term notes payable 28,762 Notes payable 12,066 Accounts payable (including related parties) 24,801 Other payables (including related parties) 29,914 Deposits received 6,942 $ 1,421,410 Lease liabilities $ 127,003	December 31, 2021
	$ 86,000
	$ 159,190
	$ 953,814 20,000 17,218 11,048 209,357 98 10,100 37,378
	$ 1,259,013
	$ 675,368 141,858 1,374 34,231 60,797 7,159
	$ 920,787
	$ 122,840

2. Risk management policies

• (1) The Group's financial risk management objectives are mainly to manage market risks, credit risks and liquidity risks related to operating activities. The Group identifies, measures and manages the aforementioned risks in accordance with the Group's policies and risk preferences.

• (2) The Group has established appropriate policies, procedures, and internal controls for the aforementioned financial risk management in accordance with relevant regulations, and important financial activities must be reviewed by the board of directors in accordance with relevant regulations and internal controls. During the execution of financial management activities, the Group shall faithfully comply with the relevant regulations on financial risk management.

• (3) The Group has not undertaken derivatives to avoid financial risks.

3. Nature and extent of material financial risks

(1) Market risk

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Interest rate risk

• A. The Group is exposed to exchange rate risks arising from transactions that are relatively different from the functional currencies of the Company and its subsidiaries, mainly in USD. The associated exchange rate risk arises from future commercial trades and recognized assets and liabilities.

• B. The management of the Group has established a policy requiring each company within the Group to manage the exchange rate risk relative to its functional currency.

• C. The business of the Group involves non-functional currency (the functional currency of the Company and its subsidiaries is NTD), so it is affected by exchange rate fluctuations, and the foreign currency assets and liabilities with significant exchange rate fluctuations are as follows:

(Foreign currency : Functional currency) Financial assets Monetary items USD: NTD (Foreign currency : Functional currency) Financial assets Monetary items USD: NTD	December 31, 2022	December 31, 2022	December 31, 2022
	Foreign currency (in thousand) Exchange rate Book amount (NTD) $ 945 30.71 $ 29,016 December 31, 2021		Book amount (NTD)
	Foreign currency (in thousand) $ 1,069	Exchange rate 27.68	Book amount (NTD)
			$ 29,590

• D. The Group's monetary items have a significant impact due to exchange rate fluctuations. The total amount of all exchange benefits recognized in 2022 and 2021 (including realized and unrealized) is NT$2,835 and NT$172, respectively.

• E. The Group’s foreign currency market risk analysis due to major exchange rate fluctuations is as follows:

The exchange risk between USD and NTD mainly comes from US dollardenominated cash and equivalent cash and accounts receivable, etc., resulting in foreign currency exchange losses or gains during conversion. If holding NTD against USD depreciates or appreciates by 1% and all other factors remain unchanged, the net profit in 2022 and 2021 will increase or decrease by NT$290 and NT$296 respectively.

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Price risk

• A. The equity instruments that the Group is exposed to price risk are financial assets held at FVTPL and financial assets at FVTOCI. In order to manage the price risk of equity instrument investment, the Group manages the price risk of equity securities by diversifying investment and setting limits for single and overall equity investment. The information on investment portfolio of equity securities needs to be regularly provided to the senior management of the Company, and the board of directors must review all equity securities investment decisions and approve the diversification of its investment portfolio.

• B. The Group mainly invests in equity instruments issued by domestic companies and joint development projects. The prices of these equity instruments and contracts will be affected by the uncertainty of the future value of the investment target. If the value of these equity instruments and joint development projects increases or decreases by 1%, and all other factors remain unchanged, the aftertax net profit in 2022 and 2021 comes from equity instruments at FVTPL and The gain or loss on the joint development project will increase or decrease by NT$860 and NT$860 respectively; the gain or loss on equity investments classified as FVTOCI will increase or decrease by NT$1,489 and NT$1,592 respectively.

Cash flow and fair value interest rate risk

• A. The Group's interest rate risk mainly comes from short-term loans issued at floating rates, short-term notes payable and long-term loans, which expose the Group to cash flow interest rate risk. In 2022 and 2021, the Group's loans issued at floating rates were mainly denominated in NTD

• B. When the NT dollar loan interest rate increases or decreases by 1%, and all other factors remain unchanged, the after-tax net profit in 2022 and 2021 will decrease or increase by NT$17,537 and NT$12,352 respectively, mainly due to floating rate loans The interest expense changes accordingly.

(2) Credit risk

• A. The credit risk of the Group is the risk of financial loss of the Group due to the inability of the customer or the counterparty of the financial instrument to perform the contractual obligations, which mainly arises from the inability of the counterparty to settle the receivables paid on collection terms and the contractual cash flows classified as investments in debt instruments at amortized cost.

• B. Each unit of the Group follows credit risk policies, procedures and controls to manage credit risk. The credit risk assessment of all customers is based on comprehensive consideration of the customer's financial status, credit rating agency ratings, past historical transaction experience, current economic

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environment, and the Group's internal rating standards and other factors.

• C. The Group's Finance and Accounting Department manages the credit risks of bank deposits, fixed-income securities and other financial instruments in accordance with the Group's policies. Because the Group's transaction partners are determined by internal controls procedures, and they are banks with good credit, financial institutions, corporate organizations and government agencies with investment grades, and hence there is no significant credit risk.

• D. The Group is mainly engages in the leasing and selling of residential buildings, industrial plants and commercial buildings. The sale of premises is recognized as revenue when the contract price is fully collected and the ownership transfer is completed and the actual house is handed over. Hence, the amount of accounts payable arising from the sale of premises should be small, and the risk of irrecoverability is minor. In addition, for the accounts receivable arising from other transactions, the Group shall manage the credit risk. When the contract payment is overdue for more than 90 days according to the agreed payment terms, it shall be deemed as a breach of contract.

• E. The Group adopts the presumption provided by IFRS 9. When the contract payment is overdue for more than 30 days according to the agreed payment terms, it is considered that the credit risk of the financial asset has increased significantly since the original recognition.

• F. When the Group assesses that the financial assets cannot be reasonably expected to be recovered (for example, the issuer or the debtor has significant financial difficulties, or has gone bankrupt), it will be written off.

• G. The Group categorizes customers' accounts receivable according to factors such as counterparty's credit rating, region and industry, and uses a simplified method to estimate expected credit losses based on the provision matrix. The relevant information is as follows (no such situation on December 31, 2022):

Not overdue December 31, 2021 Expected rate of loss 0%~1% Total book value $ 2,615 Allowance for losses $ -	Overdue 1-30 days $ - $ -	Overdue 31-60 days	Overdue 61-90 days $ - $ -	Total
		$ - $ -		$ 2,615 $ -

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January 1 Reversal of impairment losses December 31	2022 Accounts receivable $ - - $ -	2021
		Accounts receivable
		$ 68 ( 68)
		$ -

(3) Liquidity risk

• A. Cash flow forecasting is performed by each operating entity within the Group and summarized by the Group's finance department. The Group’s finance department monitors the forecast of the Group's liquidity needs to ensure that it has sufficient funds to meet operating needs and maintain sufficient unused loan commitments at any time, so that the Group will not violate the relevant loaning limit or terms. These forecasts take into account the group's debt financing plan, compliance with debt terms, and financial ratio targets in line with the internal balance sheet.

• B. The Group invests the remaining funds in interest-bearing demand deposits, time deposits and securities, and the instruments it chooses have appropriate maturity dates or sufficient liquidity to respond to the above forecasts and provide sufficient dispatch levels.

• C. The Company's unused loan is as follows:

Floating interest rate Overdue in more than one year	December 31, 2022 $ 38,517	December 31, 2021
		$ -

• D. The following table categorizes the Group's non-derivative financial liabilities according to the relevant maturity date, and analyzes based on the remaining period from the balance sheet date to the contractual maturity date. Except for notes payable, accounts payable (including related parties), other payables (including related parties) and deposits, the undiscounted contractual cash flow amount is approximately equivalent to its book value and is due within one year. The undiscounted contractual cash flow amounts of the remaining financial liabilities are detailed in the table below:

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Non-derivative financial liabilities: December 31, 2022 Short-term borrowings Short-term notes payable Lease liabilities Long-term loans (including due within one year) Non-derivative financial liabilities: December 31, 2021 Short-term borrowings Short-term notes payable Lease liabilities Long-term loans (including due within one year)	Within 1 year 1-2 years 2-3 years 3 years or above
	$ 128,843$ 29,735$ 290,913 $ 1,005,088 28,800 - - - 4,630 4,524 4,524 165,502 24,472 24,132 23,792 428,617 Within 1 year 1-2 years 2-3 years 3 years or above
	$ 56,061 $ 34,359 $ 248,884 $ 383,324 141,910 - - - 4,888 4,588 4,482 168,436 23,622 23,326 23,030 436,409

• E. The Group does not expect that the cash flow in the due date analysis will occur significantly earlier, or the actual amount will be significantly different.

(III) Fair Value Information

1. The definitions of the various levels of evaluation techniques adopted to measure the fair value of financial and non-financial instruments are as follows:

2. Level 1: Quoted prices (unadjusted) in an active market for the same assets or liabilities available to the enterprise on the measurement date. An active market is one in which transactions in assets or liabilities occur with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the listed/OTC stock invested by the Group belongs to this category.

Level 2: Observable inputs, directly or indirectly, for assets or liabilities other than quoted prices included in Level 1.

• Level 3: Unobservable inputs to assets or liabilities. The Group's investments in joint development projects without an active market belong to this category.

• For information on the fair value of investment real estate at cost, please refer to Note 6(11).

• Financial instruments not measured by fair value

• The Group's cash and cash equivalents, financial assets at amortized cost, notes receivable, accounts receivable (including related parties), other receivables (including related parties), deposits, short-term loans, The book amounts of short-term bills payable, bills payable, accounts payable (including related parties), other payables (including related parties), deposits and long-term loans are reasonable approximations of fair values.

• Financial and non-financial instruments measured by fair value are classified by the Group based on the nature, characteristics and risks of assets and liabilities and the basis of fair value levels. The relevant information is as follows:

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• (1) The Group classifies them according to the nature of assets and liabilities, and the

relevant information is as follows:

December 31, 2022 Assets Recurring fair value Mandatory financial assets at fair value through Financial assets measured Joint investment and development contract Financial assets at FVTOCI Equity securities December 31, 2021 Assets Recurring fair value Mandatory financial assets at fair value through Financial assets measured Joint investment and development contract Financial assets at FVTOCI Equity securities	Level 1 $ - 148,906 $ 148,906 Level 1 $ - 159,190 $ 159,190	Level 2 $ - - $ - Level 2 $ - - $ -	Level 3 $ 86,000 - $ 86,000 Level 3 $ 86,000 - $ 86,000	Total
				$ 86,000
				148,906
				$ 234,906
				Total
				$ 86,000
				159,190
				$ 245,190

• (2) The methods and assumptions used by the Group to measure the fair value are as follows:

• A. The Group adopts market quotation for fair value inputs (i.e. Level 1), which are broken down

by the characteristics of the instruments as follows:

Listed (OTC) stock

Market quotation Closing price

• B. Except for the above-mentioned financial instruments with active markets, the fair value of other financial instruments is obtained by evaluation techniques or by referring to the quotations of counterparties. The fair value obtained through evaluation techniques can refer to the current fair value of other financial instruments with substantially similar conditions and characteristics, discounted cash flow method or other evaluation techniques, including the use of market information available on the consolidated balance sheet date. Calculated.

• C. When evaluating non-standardized and less complex financial instruments, such as joint development projects, the Group adopts evaluation techniques widely used by market participants. The parameters adopted in the evaluation models of such

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financial instruments are usually market observable information.

1. The Group did not have any transfer between the Levels 1 and 2 in 2022 and 2021.

2. The following table shows the changes in Level 3 in 2022 and 2021:

January 1 Disposals of the current period December 31	2022 Equity instruments $ 86,000 - $ 86,000	2021
		Equity instruments
		$ 305,427 ( 219,427)
		$ 86,000

1. The Group is responsible for verifying the fair value of financial instruments, using independent source data to make the evaluation results close to the market status, confirming that the data source is independent, reliable, and other data sources Consistent and representative executable prices, and regularly calibrate the evaluation model, conduct backtesting, update the input values and data required for the evaluation model, and make any other necessary fair value adjustments to ensure that the evaluation results are reasonable.

2. The quantitative information of the significant unobservable input value and the sensitivity analysis of the change of the significant unobservable input value of the evaluation model used for the third-level fair value measurement items are as follows:

Non-derivative equity instruments: Joint investment and development contract Non-derivative equity instruments: Joint investment and development contract	Fair value on December 31, 2022 Evaluation technique $ 86,000 Net worth method Fair value on December 31, 2021 Evaluation technique $ 86,000 Net worth method	Significant unobservable input value Not applicable Significant unobservable input value Not applicable	Interval (weighted average) - Interval (weighted average) -	Relationship between input value and fair value
				Not applicable Relationship between input value and fair value
				Not applicable

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XIII.Other disclosures

(I) Information about important transactions

1. Loans to others: None.

2. Endorsements/guarantees provided for others: Please refer to Table 1.

3. Marketable securities held at the end of the period (excluding investments in subsidiaries, affiliates, and jointly controlled companies): Please refer to Table 2.

4. Accumulated purchase or sale of the same marketable securities for an amount exceeding NT$300 million or 20% of the paid-in capital: None.

5. Acquisition of real estate reaching NT$300 million or 20% of paid-in capital or more: Table 3.

6. Disposal of real estate reaching NT$300 million or 20% of paid-in capital or more: None.

7. Purchases or sales of goods from or to related parties reaching NT$100 million or 20% of paid-in capital or more: None.

8. Receivables from related parties reaching NT$100 million or 20% of paid-in capital or more: None.

9. Engagement in derivatives transactions: None.

10. The business relationship between the parent company and its subsidiaries, and the status and amount of important transactions between each subsidiary: None.

(II) Information on invested businesses

The name and location of the investee company and other relevant information (excluding mainland China investee companies): Please refer to Table 4.

(III) Investment information in Mainland China

1. Basic information: None.

2. Significant transactions with investee companies in Mainland China directly or indirectly through businesses in a third region: None.

(IV) Information of major shareholders

Information on major shareholders: Please refer to Table 5 for details.

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XIV. Information on operating segment

(I) General information

The Group divides operating units based on different products and services, and divides them into the following two reportable operating segment:

1. Sales segment: Responsible for the sales of wool-related products.

2. Real estate segment: Responsible for real estate lease and sale business.

(II) Measurement of departmental information

1. Assets of reportable segments provided to major operational decision-makers are as follows:

1. Assets of follows:	reportable segments provided to major operational decision-makers are as	reportable segments provided to major operational decision-makers are as
Net external income Revenue of internal departments Departmental revenue Departmental profit or loss Net external income Revenue of internal departments Departmental revenue Departmental profit or loss	2022
	Product sales Construction projects sales Lease Others Reconciliation and cancellation Total
	$ 14,780 $ 502,330 $ 52,778$ 265 $ -$ 570,153 - - - - - -
	$ 14,780 $ 502,330 $ 52,778$ 265 $ -$ 570,153
	($ 3,350)	$ 94,317 $ 29,402$ 265 $ 41,402$ 162,036
	2021
	Product sales Construction projects sales Lease Others Reconciliation and cancellation Total
	$ 75,283 $ 483,134 $ 52,414$ 4,704 $ -$ 615,535 - - - - - - $ 75,283 $ 483,134 $ 52,414$ 4,704 $ -$ 615,535
	($ 3,663) $ 76,883 $ 29,170$ 4,534 $ 73,497$ 180,421

1. Since the Group's assets and liabilities are not the indicators used by the operational decision-makers, the relevant amounts were not disclosed.

(III) Reconciliation information of departmental profit and loss

The external revenue and department profit and loss provided to the operational decisionmaker are measured in the same way as the revenue and pre-tax profit or loss in the financial statements, so no adjustment is required.

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(IV) Information by geographical location

Information of the Group by region in 2022 and 2021 is as follows:

Taiwan Japan Korea Total	2022 Income Non-current assets $ 555,373 $ 2,080,897 14,780 - - - $ 570,153 $ 2,080,897	2021	2021
	Income $ 555,373 14,780 - $ 570,153	Income $ 540,085 69,270 6,180 $ 615,535	Non-current assets
			$ 2,166,854 - - $ 2,166,854

(V) Important Customer Information

Information of the Group's important customers in 2022 and 2021 is as follows:

CustomerAfrom the Trading Department CustomerBfrom the Trading Department	2022 Income $ 11,763 3,017	2021
		Income
		$ 55,417 13,853

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