Chateau - Audit Report / Information 2021

Ticker Symbol：2722

Chateau International Development Company Limited and subsidiaries

Consolidated Financial Statement and Audit Report of the Accountant Year 2021 and 2020

Address: No.15, Ln. 218, Huancheng North Rd., Hengchun Township, Pingtung County 946004, Taiwan (R.O.C.) Tel: (08)886-2377

Statement for the consolidated financial statements of affiliated enterprises

The entities that are required to be included in the consolidated financial statements of Chateau International Development Co., Ltd. as of and for the year ended December 31, 2021, under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with the International Accounting Standard 10, “Consolidated and Separate Financial Statements.” In addition, the information required to be disclosed in the consolidated financial statements is included in the consolidated financial statements. Consequently, Chateau International Development Co., Ltd. and Subsidiaries do not prepare a separate set of consolidated financial statements.

Very truly yours,

Chateau International Development Co., Ltd. Chairman: CHEN, SIE-TONG

Feb. 23, 2022

Independent Auditors’ Report (Consolidated Financial Statements)

The Board of Directors and Shareholders Chateau International Development Company Limited

Opinion

The Consolidated balance sheet of Chateau International Development Company Limited and its subsidiaries (Château Hotels & Resorts) on December 31, 2020 and 2021, Consolidated statement of comprehensive income, statement of comprehensive income, Consolidated Statement of changes in equity, Consolidated Cash flow statement, and Consolidated Financial Statements or Notes (include a summary of significant policies of accounting) on January 1 to December 31, 2020 and 2021, were audited and completed by the accountant.

According to the opinion of the accountant, the said Consolidated Financial Statements, in all major aspects, was in accordance with the regulations governing the preparation of financial reports by securities issuers and approved by the Financial Supervisory Commission, and issued effective IFRS, IAS, IFRIC Interpretations, and SIC Interpretations, which were able to express the consolidated financial status of Château Hotels & Resorts on December 31, 2020 and 2021 , and consolidated financial performance and consolidated cash flow on January 1 to December 31, 2020 and 2021.

Basis of Opinion

The accountant performed the audit work in accordance with Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and Auditing standards generally accepted in the Republic of China. The accountant’s responsibilities under these standards will be further explained in the accountant’s responsibility section for review of the consolidated financial statements. The personnel of the accountant's subordinate affairs subject to independence regulations have maintained aloof independence from Château Hotels & Resorts in accordance with the accountant's professional ethics and fulfilled other responsibilities under the regulations. The accountant believes that sufficient and appropriate verification evidence has been obtained as a basis for expressing audit opinions.

Key Audit Matter

Key audit matter refers to the most important matters in the audit of Château Hotels & Resorts Consolidated Financial Statements in 2021 according to the professional judgment of the accountant. These matters have been dealt with in the process of reviewing the consolidated financial statements as a whole and forming an audit opinion. The accountant does not express an independent opinion on these matters.

The key audit matter of Château Hotels & Resorts' consolidated financial statements in 2021 is stated as follows:

As stated in Note 23 of the consolidated financial statements, the revenue from guest rooms was 428,714 (In Thousands of NTD) in 2021, accounting for 73% of total operating revenue. They are significant to the consolidated financial statements. The room income generated by the reservation of the travel agent usually involves a lot of manual operations due to the different transaction conditions of the travel agent. Therefore, the accountant lists the authenticity of the room income generated by the travel agent as the key audit matter.

Corresponding audit procedures

The accountant has executed the corresponding procedures for the said key audit matter listed as follows:

To understand and test the effectiveness of the main internal control design and implementation for the authenticity of revenue.
Obtain details of room revenue and catering revenue generated by bookings from travel agencies, and check relevant transaction documents, including passenger registration cards, counter bills, reconciliation calculations of travel agency and contract terms, etc., to test the authenticity of the revenue.
Audit the subsequent records of payment received from the travel industry after the review period.

Other items

Chateau International Development Company Limited has prepared individual financial reports for the year 2021 and 2020, and the accountant has issued an unqualified audit report for reference.

Responsibilities of Management and Governing body for consolidated financial statements

The responsibility of management was in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and approved by the Financial Supervisory Commission, and issued effective IFRS, IAS, IFRIC Interpretations, and SIC Interpretations, which were able to express the consolidated financial statements, and maintain the necessary internal control related to the preparation of the consolidated financial statements to ensure that the consolidated financial statements do not contain any material misrepresentation due to fraud or errors.

When preparing the consolidated financial statements, the responsibilities of management also include assessing Château Hotels & Resorts’ ability to continue operations, disclosure of related matters, and the adoption of the accounting basis for continued operations, unless the management intends to liquidate Château Hotels & Resorts or cease operations, or there is no practical and feasible plan other than liquidation or suspension of business.

The governing body (including supervisors) of Château Hotels & Resorts is responsible for supervising the financial reporting process.

The accountant's responsibility for auditing the consolidated financial statements

The purpose of this accountant's audit of the consolidated financial statements is to obtain reasonable conviction as to whether the consolidated financial statements as a whole contain any material misrepresentation due to fraud or errors, and to issue an audit report. Reasonable assurance is a high degree of certainty, but the audit work performed in accordance with the generally accepted auditing standards cannot guarantee that material misrepresentation in the consolidated financial statements will be detected. Misrepresentation may result from fraud or errors. If the untruthful individual amounts or aggregate can be reasonably expected to affect the economic decisions made by the users of the consolidated financial statements, they are considered significant.

The accountant uses professional judgment and maintains professional suspicion when conducting audits in accordance with the auditing standards generally accepted in the Republic of China. The accountant also performs the following tasks:

Identify and evaluate the risks of material misrepresentation in the consolidated financial statements due to fraud or errors; design and implement appropriate countermeasures for the assessed risks; and obtain sufficient and appropriate audit evidence as the basis for audit opinion. Because fraud may involve collusion, forgery, deliberate omission, false statement or violation of internal control, the risk of not detecting material misrepresentation caused by fraud is higher than that caused by errors.
Obtain the necessary understanding of the internal control relevant to the audit in order to design an appropriate audit procedure under the circumstances, but its purpose is not to express an opinion on the effectiveness of the internal control of Château Hotels & Resorts.
Evaluate the appropriateness of the accounting policies adopted by the management and the reasonableness of accounting estimates and related disclosures.
Based on the obtained audit evidence, make a conclusion on the appropriateness of the management's use of the continuing operations of the accounting basis and whether there is significant uncertainty in the event or situation that may cause major doubts about the ability of Château Hotels & Resorts to continue operations. If the accountant believes that there are significant uncertainties in these events or circumstances, he must remind the users of the financial statements in the audit report to pay attention to the relevant disclosures in the consolidated financial statements, or amend the audit opinion when such disclosures are inappropriate. The accountant’s conclusion is based on the audit evidence obtained as of the audit report date, but future events or circumstances may cause Château Hotels & Resorts to no longer have the ability to continue operations.
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Evaluate the overall expression, structure and content of the consolidated financial statements (including relevant notes), and whether the consolidated financial statements are appropriate to express relevant transactions and events.
Obtain sufficient and appropriate audit evidence for the financial information of the constituent entities in Château Hotels & Resorts to express opinions on the consolidated financial statement. The accountant is responsible for the guidance, supervision and execution of the group's audit cases, and is responsible for forming the group's audit opinion.

The matters communicated between the accountant and the governing body include the planned audit scope and time, as well as major audit findings (including significant deficiencies in internal control identified during the audit process).

The accountant also provides the governing body with a statement that the personnel of the accountant’s affairs subject to independence regulations have complied with the independence of code of professional ethics, and communicates with the governance unit all relationships and other matters that may be considered to affect the independence of the accountant (including relevant protective measures).

The accountant decided to audit the key audit matter of Château Hotels & Resorts' 2021 financial statements from the matters communicated with the governing body. The accountant states these matters in the audit report, unless the law does not allow specific matters to be disclosed publicly, or in very rare cases, the accountant decides not to communicate specific matters in the audit report because it can be reasonably expected that the negative impact of this communication will be greater than the public interest promoted.

Deloitte & Touche

Accountant LEE, CHI-CHEN

Accountant YANG, CHAO-CHIN

No. approved by Securities and Futures Commission

No. approved by Financial Supervisory Commission

No. Taiwan-Financial-SecuritiesNo.0920123784

No. Financial-Supervisory-SecuritiesAuditing- No.1060023872

February 23, 2022

Chateau International Development Company Limited and Subsidiaries Consolidated Balance Sheet December 31, 2021 and 2020

(Unit: Thousands of New Taiwan Dollars)

Code 1100 1120 1136 1170 1200 130X 1410 1470 11XX 1535 1550 1600 1755 1760 1780 1791 1840 1952 1990 15XX 1XXX Code 2100 2110 2130 2170 2200 2230 2280 2320 2399 21XX 2540 2570 2580 2640 2645 25XX 2XXX 3110 3200 3310 3320 3350 3300 3400 31XX 36XX 3XXX	Assets Current assets Cash and cash equivalents (Notes 4 and 6) Current financial assets at fair value through other comprehensive income (Notes 4 and 7) Current financial assets at amortized cost(Notes 4, 8 and 30) Accounts receivable, net (Notes 4, 9 and 29) Other receivables Current inventories (Notes 4 and 10) Prepayments Other current assets (Note 18) Total current assets Non-current assets Non-current financial assets at amortized cost (Notes 4, 8 and 30) Investments accounted for using equity method (Notes 4 and 12) Property, plant and equipment (Notes 4, 13, 29 and 30) Right-of-use assets (Notes 4 and 14) Investment property(Note 4`、`15 and 30) Intangible assets (Notes 4 and 16) Franchising (Notes 4, 16 and 31) Deferred tax assets (Notes 4 and 25) Fund for improvements and expansions (note 17) Other non-current assets (Notes 18 and 29) Total non-current assets Total assets Liabilities and equity Current liabilities Short-term loans (Notes 4, 19 and 30) Short-term notes and bills payable (Notes 4, 19 and 30) Current contract liabilities(notes 4 and 23) Accounts payable (note 29) Other payables (Notes 20 and 29) Current tax liabilities (Notes 4 and 25) Current lease liabilities (notes 4 and 14) Long-term liabilities, current portion (Notes 4, 19 and 30) Other current liabilities, others (Notes 20 and 29) Total current liabilities Non-current liabilities Non-current portion of non-current borrowings (Notes 4, 19 and 30) Deferred tax liabilities (Notes 4 and 25) Non-current lease liabilities (notes 4 and 14) Net defined benefit liability, non-current (Note 4 and 21) Guarantee deposits received Total non-current liabilities Total liabilities Equity attributable to the owners of the parent (Note 22) Share capital Ordinary share Capital surplus Retained earnings Legal reserve Special reserve Unappropriated retained earnings (accumulated deficit) Total retained earnings Total other equity interest Total equity attributable to owners of parent Non-controlling interests Total equity Total liabilities and equity		December 31, 2021	December 31, 2021	`％` 4 13 1 1 - - 1 - 20 - - 44 2 22 - 11 - 1 - 80 100 1 3 1 1 3 1 1 3 2 16 8 - 1 - - 9 25 41 6 6 8 4 18 5 70 5 75 100		December 31, 2020	December 31, 2020
			Amount $ 120,257 339,227 33,267 13,030 206 11,820 12,730 177 530,714 11,000 3,574 1,173,886 56,236 589,820 562 292,928 3,207 25,388 7,764 2,164,365 $ 2,695,079 $ 30,000 90,322 32,720 30,740 71,941 20,203 16,983 72,033 64,187 429,129 207,500 1,118 34,237 9,084 421 252,360 681,489 1,115,229 170,663 156,829 226,387 93,085 476,301 122,172 1,884,365 129,225 2,013,590 $ 2,695,079				Amount $ 161,178 178,724 18,522 13,935 6 11,092 12,916 127 396,500 11,000 4,482 1,179,382 72,631 548,143 1,878 337,513 3,749 8,002 7,520 2,174,300 $ 2,570,800 $ 30,000 60,774 28,223 26,017 78,553 26,766 14,058 93,768 55,637 413,796 122,033 1,118 51,572 9,036 421 184,180 597,976 1,115,229 170,663 148,136 236,201 127,852 512,189 40,673 1,838,754 134,070 1,972,824 $ 2,570,800		`％`
									6 7 1 1 - - - - 15 1 - 46 3 22 - 13 - - - 85 100 1 2 1 1 3 1 1 4 2 16 5 - 2 - - 7 23 43 7 6 9 5 20 2 72 5 77 100

The attached notes are part of this consolidated financial statement.

Chateau International Development Company Limited and subsidiaries Consolidated Statement of Comprehensive Income January 1 to December 31, 2021 and 2020

(Unit: Thousands of New Taiwan Dollars)

(However, the earnings per share are New Taiwan Dollars)

Code 4000 Total operating revenue(Note 4, 23 and 29) 5000 Total operating costs(Note 10, 24 and 29) 5900 Gross profit (loss) from operations Operating expenses(Notes 24 and 29) 6100 Selling expenses 6200 Administrative expenses 6000 Total operating expenses 6510 Other income(Note 24) 6900 Net operating income (loss) Non-operating income and expenses(Note 12, 24 and 29) 7100 Interest income 7010 Other income 7030 Other gains and losses 7050 Financial costs 7070 Share of profit (loss) of associates and joint ventures accounted for using equity method, net 7590 Miscellaneous disbursements 7000 Total non-operating income and expenses 7900 Profit (loss) from continuing operations before tax 7950 Total tax expense (income) (Notes 4 and 25) 8200 Profit (loss) from continuing operations (Next page)		Year 2021	Year 2021

Code Other comprehensive income Items not reclassified to profit or loss: 8311 Gains (losses) on remeasurements of defined benefit plans(Note 21) 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit loss (Note 25) 8300 Other comprehensive income of the year, net of income tax 8500 Total comprehensive income Profit (loss), attributed to`：` 8610 Shareholders of the parent 8620 Non-controlling interests 8600 Comprehensive income attributable to`：` 8710 Shareholders of the parent 8720 Non-controlling interests 8700 Earnings per Share(NT$, Note 26) 9750 Basic earnings per share 9850 Diluted earnings per share	Year 2021	Year 2021	% - 14 - 14 16 4 1) 3 17 1) 16	Year 2020	Year 2020
	Amount ( $ 635 ) 81,499 127 80,991 $ 96,528 $ 20,382 ( 4,845) $ 15,537 $ 101,373 ( 4,845) $ 96,528 $ 0.18 0.18			Amount ( $ 830 ) 67,873 166 67,209 $ 152,239 $ 87,592 ( 2,562) $ 85,030 $ 154,801 ( 2,562) $ 152,239 $ 0.79 0.79		%
		( (				- 9 - 9 21 12 - 12 21 - 21

The attached notes are part of this consolidated financial statement.

Chateau International Development Company Limited and subsidiaries Consolidated Statement of Changes In Equity January 1 to December 31, 2021 and 2020

(Unit: Thousands of New Taiwan Dollars)

		Equity attributable to Shareholders ofparent	Equity attributable to Shareholders ofparent		Total Equity
Ordinary share $ 1,115,229 - - - - - - 1,115,229 - - - - - - $ 1,115,229	Capital surplus $ 170,663 - - - - - - 170,663 - - - - - - $ 170,663	Retained earnings Legal reserve Special reserve Unappropriated retained earnings (accumulated deficit) $ 144,136 $ 212,747 $ 90,683 4,000 - ( 4,000 ) - 23,454 ( 23,454 ) - - ( 22,305 ) - - 87,592 - - ( 664) - - 86,928 148,136 236,201 127,852 8,693 - ( 8,693 ) - ( 9,814 ) 9,814 - - ( 55,762 ) - - 20,382 - - ( 508) - - 19,874 $ 156,829 $ 226,387 $ 93,085		Other equity Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income ( $ 27,200 ) - - - - 67,873 67,873 40,673 - - - - 81,499 81,499 $ 122,172
		Legal reserve $ 144,136 4,000 - - - - - 148,136 8,693 - - - - - $ 156,829	Special reserve $ 212,747 - 23,454 - - - - 236,201 - ( 9,814 ) - - - - $ 226,387
					$ 1,842,890 - - ( 22,305 ) 85,030 67,209 152,239 1,972,824 - - ( 55,762 ) 15,537 80,991 96,528 $ 2,013,590

The attached notes are part of this consolidated financial statement.

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Chateau International Development Company Limited and subsidiaries Consolidated Cash Flow Statement January 1 to December 31, 2021 and 2020

(Unit: Thousands of New Taiwan Dollars)

Code Cash flows from (used in) operating activities, indirect method A10000 Profit (loss) before tax A20010 Adjustments to reconcile profit (loss) A20100 Depreciation expense A20200 Amortization expense A20900 Interest expense A21200 Interest income A21300 Dividend income A22300 Share of loss (profit) of associates and joint ventures accounted for using equity method A22500 Loss (gain) on disposal of property, plan and equipment A22800 Loss (gain) on disposal of intangible assets A29900 Other adjustments to reconcile profit (loss) A30000 Changes in operating assets and liabilities A31150 Decrease (increase) in accounts receivable A31180 Decrease (increase) in other receivable A31200 Adjustments for decrease (increase) in inventories A31230 Decrease (increase) in prepayments A31240 Adjustments for decrease (increase) in other current assets A32125 Increase (decrease) in contract liabilities A32130 Increase (decrease) in notes payable A32150 Increase (decrease) in accounts liabilities A32180 Increase (decrease) in other payable A32230 Adjustments for increase (decrease) in other current liabilities A32240 Increase (decrease) in net defined benefit liability A33000 Cash inflow (outflow) generated from operations A33500 Income tax paid AAAA Net cash flows from (used in) operating activities Cash flows from (used in) investing activities B00040 Acquisition of financial assets at amortized cost (Next page)	Year 2021 $ 18,220 71,943 48,301 5,511 ( 54 ) ( 4,136 ) 908 4 51 - 905 ( 200 ) ( 728 ) 1,096 ( 50 ) 4,497 - 4,723 ( 3,933 ) 8,550 ( 587) 155,021 ( 8,577) 146,444 ( 14,745 )	Year 2020
		$ 103,380 79,155 50,089 6,067 ( 79 ) - 18 7 67 ( 2 ) ( 3,563 ) 938 ( 293 ) 636 2,805 8,004 ( 24 ) ( 1,397 ) ( 1,625 ) ( 10,480 ) ( 313) 233,390 ( 73) 233,317 -

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B00050 Proceeds from financial assets at amortized cost B00100 Acquisition of financial assets at fair value through profit or loss B01800 Acquisition of investments accounted for using equity method B02700 Acquisition of property, plant and equipment B02800 Proceeds from disposal of property, plant and equipment B04500 Acquisition of intangible assets B05350 Acquisition of use-of-right assets B05400 Acquisition of investment property B06800 Decrease in other non-current assets B07100 Increase in prepayments for business facilities B07500 Interest received B07600 Dividends received B09900 Other investing activities BBBB Net cash flows from (used in) investing activities Cash flows from (used in) financing activities C00100 Increase in short-term loans C00200 Decrease in short-term loans C00500 Increase in short-term notes and bills payable C00600 Decrease in short-term notes and bills payable C01600 Proceeds from long-term debt C01700 Repayments of long-term debt C04020 Payments of lease liabilities C04300 Increase in other non-current liabilities C04500 Cash dividends C05600 Interest paid CCCC Net cash flows from (used in) financing activities EEEE Net increase (decrease) in cash and cash equivalents E00100 Cash and cash equivalents at beginning of period E00200 Cash and cash equivalents at end of period	Year 2021 - ( 79,004 ) - ( 64,864 ) 76 ( 2,451 ) - ( 27,000 ) 216 ( 460 ) 54 4,136 ( 17,386) ( 201,428) - - 363,000 ( 333,500 ) 250,000 ( 186,268 ) ( 18,002 ) - ( 55,762 ) ( 5,405) 14,063 ( 40,921 ) 161,178 $ 120,257		Year 2020
			12,746
		- ( 4,500 ) ( 40,759 ) 110 ( 3,632 ) ( 3,233 ) - 315 ( 3,521 ) 79 - ( 8,000) ( 50,395) 70,000 ( 70,000 ) 326,000 ( 294,000 ) 290,000 ( 391,930 ) ( 18,215 ) 121 ( 22,305 ) ( 6,373) ( 116,702) 66,220 94,958 $ 161,178

The attached notes are part of this consolidated financial statement.

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Chateau International Development Company Limited and subsidiaries Notes to the Consolidated Financial Statement January 1 to December 31, 2021 and 2020 （ Unless otherwise specified, the amount is in thousands of New Taiwan Dollar ）

1. GENERAL

Chateau International Development Company Limited （ hereinafter referred to as "the company" ） was founded in September 1995, formerly known as JinHai Development Co., Ltd., and was changed to its current name in December 2006. The main business is the operation of amusement areas, hotels and restaurants.

Quintain Steel Co., Ltd. had 29.43% of the company's comprehensive shareholding ratio as of the end of December 2021 and 2020, respectively. Because of its substantial control over the company, it is the ultimate parent company of the company.

The company's stock has been listed and traded on the Taiwan Stock Exchange since March 2012.

This consolidated financial statement is expressed in New Taiwan Dollar, the company’s functional currency.

2. THE AUTHORIZATION OF FINANCIAL

This consolidated financial report was released on February 23, 2022 after it was approved by the board of directors.

3. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

(1) For the first time, it is applicable to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations and SIC Interpretations (hereinafter referred to as "IFRSs") recognized and issued by the Financial Supervisory Commission (hereinafter referred to as the "FSC").

The application of the revised FSC approved and issued effective IFRSs will not cause major changes in the accounting policies of the consolidated company.

(2) The IFRSs issued by International Accounting Standards Board (IASB) and endorsed by FSC with effective date starting 2022.

Effective Date Issued New, Revised or Amended Standards and Interpretations by IASB Annual Improvements to IFRS Standards 2018 - 2020 Cycle January 1, 2022 (Note 1) Amendments to IFRS 3 “Reference to the Conceptual Framework January 1, 2022 (Note 2) Amendments to IAS 16 “Property, Plant and Equipment - January 1, 2022 (Note 3) Proceeds before Intended Use” Amendments to IAS 37 “Onerous Contracts–Cost of January 1, 2022 (Note 4)

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Effective Date Issued by IASB

New, Revised or Amended Standards and Interpretations

Fulfilling a Contract”

Note 1: The amendment of IFRS 9 is applicable to the exchange or clause modification of financial liabilities during the annual reporting period beginning after January 1, 2022; the amendment of IAS 41 "Agriculture" is applicable to the fair value measurement beginning after January 1, 2022 during the annual reporting period; the amendment to IFRS 1 "First Adoption of IFRSs" is retrospectively applied to the annual reporting period beginning after January 1, 2022.
Note 2: This amendment applies to business mergers whose acquisition date starts after January 1, 2022 during the annual reporting period.
Note3: Plants, real estate and equipment that have reached the necessary locations and conditions for the expected operation of the management after January 1, 2021 are applicable to this amendment.
Note 4: Contracts that have not fulfilled all obligations on January 1, 2022 apply to this amendment.

As of the date of approval of this consolidated financial report, the consolidated company continues to evaluate the impact of other standards and amendments to the interpretation on the financial status and financial performance, and the relevant impact will be disclosed when the evaluation is completed.

(3) The IFRSs issued by IASB, but not yet endorsed and issued into effect by the FSC.

New, Revised or Amended Standards and Interpretations

Effective Date Issued by IASB (Note 1)

Amendments to IFRS 10 and IAS 28 “Sale or Contribution To be determined by IASB of Assets between an Investor and its Associate or Joint Venture IFRS 17 "Insurance Contract" January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendments to IFRS 17 “Initial application of IFRS 17 and January 1, 2023 IFRS 9 - comparative information”

Amendments to IAS 1 “Classification of Liabilities as January 1, 2023 Current or Non-current”

Amendments to IAS 1 “Disclosure of Accounting Policies” January 1, 2022 (Note 2) Amendments to IAS 8 “Definition of Accounting Estimates” January 1, 2022 (Note 3) Amendments to IAS 12 “Deferred Tax related to Assets and January 1, 2022 (Note 4) Liabilities arising from a Single Transaction”

Note 1: Unless otherwise specified, the above newly issued and revised standards and interpretations are effective for the annual reporting period beginning after each date.
Note 2: The postponement of the annual reporting period starting after January 1, 2023 is applicable to this amendment.
Note 3: Changes in accounting estimates and changes in accounting policies that occur during the annual reporting period beginning after January 1, 2023 are applicable to this amendment.
Note 4: Except for the recognition of deferred income tax on temporary differences between lease and decommissioning obligations on January 1, 2022, the amendment is applicable to transactions that occur after January 1, 2022.
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As of the date of approval of this individual financial report, the individual company continues to evaluate the impact of other standards and amendments to the interpretation on the financial status and financial performance, and the relevant impact will be disclosed when the evaluation is completed.

4. Summary Explanation of Significant Accounting Policies

(1) Statement of Compliance

This Consolidated financial statement is prepared in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs approved and issued by the FCS.

(2) Basis of Preparation

Except for the financial instruments measured at fair value and the current value of the determined benefit obligation minus the net determined benefit liabilities recognized at the fair value of the planned asset s, the consolidated financial statement is prepared on the hist orical cost basis.

The fair value measurement is divided into level 1 to level 3 according to the observability and importance of the relevant input value:

Level 1 input value: refers to the quotation of the same asset or liability in the active market that can be obtained on the measurement date (unadjusted).
Level 2 input value: refers to the observable input value of an asset or liability directly (that is, price) or indirectly (that is, derived from price) except for the quotation of the first level.
Level 3 input value: refers to the unobservable input value of assets or liabilities.

(3) Standards for distinguishing between current and non-current assets and liabilities Current assets include:

Assets that are held mainly for trading purposes;
Assets expected to be realized within 12 months after the balance sheet date; and
Cash (however, it does not include those restricted for the exchange or settlement of liabilities more than 12 months after the balance sheet date). Current liabilities include:
Liabilities held mainly for trading purposes;
Liabilities that are due for settlement within 12 months after the balance sheet date; and
Liabilities that are not possible to be unconditionally deferred at least 12 months of the settlement period after the balance sheet date. Those that are not classified as current assets or current liabilities are

classified as non-current assets or non-current liabilities.

(4) Combination basis

This consolidated financial statement includes the financial reports of the company and the entities (subsidiaries) controlled by the company. The financial reports of the subsidiaries have been adjusted to make their accounting policies consistent with the accounting policies of the consolidated company. When preparing the consolidated financial statement, all transactions, account balances, income and expenses between each entity have been eliminated. The total consolidated profit and loss of the subsidiary is attributable to the owners and non-controlling interests of the company, even if the non-controlling interests become the deficit balance.

For details of subsidiaries, shareholding ratios and business items, please refer to Note 11 and Attached Table 3.

(5) Foreign currency

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When entities prepare financial reports, transactions in currencies other than the individual's functional currency (foreign currency) shall be converted into functional currency records at the exchange rate on the transaction date.

Monetary items in foreign currencies are translated at the closing exchange rate on each balance sheet date. The exchange difference ari sing from the delivery of monetary items or the conversion of monetary items is recognized in the profit and loss in the current period.

(6) Inventories

Inventory includes commodities, catering materials and room spar e parts, etc. Inventory is measured by the lower of cost and net realizable value. When comparing cost and net realizable value, it is based on individual items except for the same type of inventory. Net realizable value refers to the estimated selling price under normal circumstances after subtracting the estimated cost to be completed and the estimated cost required to complete the sale. The calculation of inventory cost adopts the weighted average method.

(7) Investment in affiliated companies

Affiliated companies refer to companies that have significant influence on the combined company but are not subsidiaries or joint ventures.

The combined company adopts the Equity method for the investment related companies.

Under the Equity method, investments in Associates were originally recognized at cost, and the future carrying amount obtained will increase or decrease with the associated profit and loss and other comprehensive income share and profit distribution owned by the combined company. In addition, changes in Associate's equity are recognized based on the shareholding ratio.

(8) Property, Plant and Equipment

Property, plant and equipment are recognized at cost, and subsequently measured at the amount of cost minus accumulated depreciation.

Property, plant and equipment under construction are recognized at the cost minus accumulated impairment losses. Cost includes professional service fees and borrowing costs that meet the capitalization conditions. When these assets are completed and reach the expected state of use, they are classified into the appropriate categories of real estate, plant and equipment, and depreciation begins.

－ Property, plant and equipment business equipment is transferred to expenses when it is actually damaged and replaced. Property, plant and equipment other than business equipment are depreciated on a straight -line basis within the useful life, and each significant part is separately depreciated. The merging company shall review the estimated useful life, residual value and depreciation method at least at the end of each year, and postpone the impact of changes in applicable accounting estimates.

When Property, plant and equipment are derecognized, the difference between net disposal proceeds and the carrying amount of assets is recognized in profit and loss.

The consolidated company has changed the service life of some depreciable assets (houses and buildings, hydropower equipment and other equipment) from July 1, 2020. The service life after the change can b etter reflect the economic nature of the assets. The estimated service life of houses and buildings has been changed from 40 years to 48 years; the estimated service life of hydroelectric equipment has been changed from 10

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years to 15 to 20 years; and the estimated service life of even equipment has been changed from 10 to 15 years to 15 to 20 years. This estimate change reduces the depreciation expense from July 1, 2020 to December 31, 2020 by 5,772 (In Thousands of NTD).

(9) Investment Property

Investment property is the land held for undecided use, so it is regarded as holding for capital appreciation.

The Investment Property held by the combined company is land, originally measured at cost (including transaction costs), and subsequently measured at the amount of cost minus accumulated impairment.

When the investment property is derecognized, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in the profit and loss.

(10) Operating franchise

The company signed a contract with the Forestry Bureau of the Council of Agriculture of the Executive Yuan to obtain the operating rights of the hotel, and the ownership of the houses and facilities invested in the construction is owned by the government (as a consideration provided in the Service Concession Arrangement). Therefore, the cost of building houses and facilities is listed as the cost of obtaining Service Concession Arrangement, and is amortized on a straight-line basis based on the actual service life of the buildings and facilities and the remaining life of the contract, whichever is lower.
The company leases land to the Forestry Bureau of the Executive Yuan Committee of Agriculture for business use. The annual rent is a business lease and is recognized as an expense during the lease period, unless another systematic basis is more representative of the time pattern of benefit to users. Under operating leases, contingent rents are recognized as expenses in the period in which they are incurred. The residual value of an intangible asset with a limited useful life is estimated to be zero, and the application of the change in accounting estimate will be postponed.

(11) Intangible asset

1. Obtained separately

Intangible assets with finite useful lives acquired separately are initially measured at cost, and subsequently measured at cost less accumulated amortization and accumulated impairment losses. Intangible assets are amortized on a straight-line basis over their useful lives. The consolidated company reviews the estimated useful lives, residual values and amortization methods at least at the end of each year, and deferred the impact of changes in accounting estimates .

2. Derecognition

When an intangible asset is delisted, the difference betwee n the net disposal price and the carrying amount of the asset is recognized in profit or loss for the current period.

(12) Property, plant and equipment, right-of-use asset, intangible asset and assets' impairment related to contract cost.

The combined company assesses whether there are any signs that the real estate, plant and equipment, right-of-use asset and intangible asset may have been impaired on every balance sheet date. If there is any sign of impairment, the amount recoverable of the asset is estimated. If the amount recoverable of an individual asset cannot be estimated, the combined company estimates the amount recoverable of the cash-generating unit to which the asset belongs.

Amount recoverable is the higher of fair value less costs to sell and value in use. If the amount recoverable of an individual asset or

17 -

cash-generating unit is lower than it’s carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its amount recoverable, and the impairment loss is recognized in profit and loss.

When the impairment loss is subsequently reversed, the carrying amount of the asset, cash-generating unit or contract cost-related asset is adjusted to the revised amount recoverable.

However, the carrying amount after the increase does not exceed the carrying amount (deducting amortization or depreciation) determined when the impairment loss is not recognized in the previous year if the asset, cash-generating unit or contract cost-related asset does not exceed the carrying amount. The reversal of the impairment loss is recognized in the profit and loss.

(13) Financial instruments

Financial asset and financial liability are recognized on the Consolidated balance sheet when the combined company becomes one of the contract terms of the tool.

In the original recognition of financial asset and financial liability, if the financial asset or financial liability is not at fair value through profit or loss, it is calculated based on the fair value plus the transaction cost that can be directly attributed to the acquisition or issuance of the financial asset or financial liability. Transaction costs that can be attributed to the acquisition or issuance of the financial asset or financial liability at fair value through profit or loss are immediately recognized as profit or loss.

1. Financial asset

Regular way purchase or sale of financial asset is recognized and derecognized by trade date accounting.

(1) Type of measurement

The types of financial assets held by the combined company are financial assets measured at amortized cost and investment o f equity instruments that is measured at fair value through other comprehensive income.

A. Financial assets measured at amortized cost

If the combined company invests in a financial asset that meets the following two conditions, it is classified as financial assets measured at amortized cost:

a. It is held under a certain business model, the purpose of which is to hold financial assets to receive contractual cash flows; and
b. The terms of the contract generate cash flows on a specific date, and these cash flows are all interest on the payment of the principal and the amount of principal in circulation.

Financial assets measured at amortized cost (including cash, receivables, other receivables, financial assets measured at amortized cost, fund for improvement and expansion, and refundable deposits (other non-current assets)) are measured by the total carrying amount determined by the Effective interest method minus any impairment loss amortized cost after the original recognition, and any foreign currency exchange gains and losses are recognized in profit and loss.

Interest income is calculated by multiplying the effective interest rate by the total carrying amount of financial asset.

B. Investment of equity instruments that is measured at fair value through other comprehensive income

At the time of initial recognition, the combined company can make an irrevocable choice to specify Investment of equity instruments that are not held for trading and are not recognized or considered by the merger acquirer through other comprehensive income measured at fair value.

Investment of equity instruments that is measured at fair value

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through other comprehensive income is measured at fair value, and subsequent changes in fair value are reported in other comprehensive income and accumulated in other equity. At the time of investment disposal, the accumulated profits and losses are directly transferred to retained earnings and are not reclassified as profits and losses.

Investment of equity instruments that is measured at fair value through other comprehensive income. The dividend is recognized in the profit and loss when the combined company's right to receive payments is established, unless the dividend clearly represents part of the investment cost recovery.

(2) Impairment of financial asset

The combined company assesses financial assets measured at amortized cost (including accounts receivable) and investment of equity instruments that is measured at fair value through other comprehensive income on the basis of expected credit losses on each balance sheet date.

Accounts receivable are recognized as allowance losses based on expected credit losses during the duration. For other financial assets, first assess whether the credit risk has increased significantly since the initial recognition. If there is no significant increase, the 12-month expected credit loss is recognized as an allowance loss; if it has increased significantly, it is recognized as a loss allowance based on lifetime expected credit losses.

Expected credit losses are weighted average credit losses based on the risk of default. The 12-month expected credit losses represent the expected credit losses arising from possible defaults of financial instruments within 12 months after the reporting date. Lifetime expected credit losses represent the expected credit losses arising from all possible defaults during the expected life of the financial instruments.

The combined company is for the purpose of internal credit risk management, and without considering the collateral held, it is determined that the following circumstances represent that the financial asset has defaulted:

A. There is internal or external information showing that it is impossible for the debtor to pay off the debt.

B. Overdue for more than 30 days, unless there is reasonable and corroborated information that shows that the delayed default basis is more appropriate. The impairment loss of all financial assets is reduced by the allowance account to reduce its carrying amount, but the loss allowance of debt instrument investment through other comprehensive income measured at fair value is recognized in other comprehensive income, and its carrying amount is not reduced.

(3) Derecognition of financial asset

The combined company only derecognizes the financial asset when the contractual rights to cash flows from the financial asset lapse, or the financial asset has been transferred and almost all the risks and rewards of the asset's ownership have been transferred to other companies.

When financial assets measured at amortized cost are derecognized as a whole, the difference between the carrying amount and the consideration received is recognized in profit and loss. When investment of equity instrument that is measured at fair value through other comprehensive income are derecognized as a whole, the accumulated profits and losses are directly transferred to retained earnings and are not reclassified as profits and losses.

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Financial liability
(1) Follow-up measurement

All financial liabilities are measured at amortized cost using the effective interest method.

(2) Derecognition of financial liability

When the financial liability is derecognized, the difference between the carrying amount and the consideration paid (including any transferred non-cash assets or liabilities assumed) is recognized as profit or loss.

(14) Income recognition

After the customer contract recognizes the performance obligations, the combined company allocates the transaction price to each performance obligation, and recognizes revenue when each performance obligation is met.

(15) Lease

The combined company assesses whether the contract belongs to (or includes) a lease on the date of contract establishment.

The combined company is lessee.

Except for the low-value underlying asset leases and short-term leases that are subject to the applicable recognition exemption, the lease payments are recognized as expenses on a straight-line basis during the lease period, and other leases are recognized as right-of-use asset and lease liability on the lease start date.

Right-of-use asset is originally measured at cost, and subsequently measured at the amount of cost minus accumulated depreciation, and the remeasurement of lease liability is adjusted. The right-of-use asset is separately expressed in the consolidated balance sheet.

Right-of-use asset is depreciated on a straight-line basis from the lease start date to the end of the service life or the expiration of the lease period, whichever is earlier.

Lease liability is originally measured by the present value of lease payments (including fixed payments). If the interest rate implicit in a lease is easy to determine, the lease payment is discounted using this interest rate. If the interest rate is not easy to determine, use lessee's incremental borrowing rate of interest.

Subsequently, lease liability is measured on the basic of an amortized cost using the effective interest method, and the interest expense is amortized during the lease period. If the lease period causes changes in future lease payments, the combined company will then measure the lease liability and adjust the right-of-use asset relatively. However, if the carrying amount of the right-of-use asset has been reduced to zero, the remaining remeasurement amount will be recognized in profit and loss. Lease liability is separately expressed in the consolidated balance sheet. The variable rent in the lease agreement that is not dependent on the index or rate is recognized as an expense in the period in which it occurs.

(16) Borrowing cost

The borrowing cost that can be directly attributed to the acquisition, construction, or production of a qualified asset is regarded as a part of the cost of the asset until almost all necessary activities for the asset to reach its intended use or sale status have been completed.

Specific borrowings, such as investment income earned by temporary investments before the occurrence of capital expenditures that meet the requirements, are deducted from the borrowing cost of eligible for

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capitalization.

Except for the above, all other borrowing costs are recognized as profit or loss in the current period.

(17) Government grants

Government grants will only be recognized when it is reasonably certain that the combined company will comply with the conditions attached to the government grants and will receive the grant.

Government grants are recognized in the profit and loss on a systematic basis during the period when the related costs that they intend to compensate are recognized as expenses by the combined company.

If government grants are used to compensate for expenses or losses incurred, or for the purpose of providing immediate financial support to the combined company without future related costs, they are recognized in profit and loss during the period when they can be collected.

(18) Employee benefits

Short-term employee benefits

Related liabilities of short-term employee benefits are measured by the expected non-discounted amount of cash paid in exchange for employee services.

Retirement benefits

Determine the retirement fund to be contributed to the retirement plan is to recognize the amount of the retirement fund that should be contributed as an expense during the employee's service period

The defined benefit cost (including service cost, net profit interest and remeasurement) of the defined benefit retirement plan is calculated using the projected unit credit method, and the service cost (including current service cost) and net interest on the net defined benefit liability are incurred , recognized as employee benefit expenses, remeasurements (including actuarial gains and losses, changes in the impact of asset ceilings and return on plan asset after deduction of interest) are recognized in other comprehensive income and included in retained earnings when they occur, and are not reclassified to profit and loss.

Net defined benefit liability refers to the shortfall in determining the benefit of the retirement plan.

(19) Income tax

Income tax expense is the sum of current income tax and deferred income tax.

1. Current tax

The combined company calculates the recoverable income tax according to the current income (loss) stipulated by each income tax reporting jurisdiction.

The additional income tax on undistributed earnings calculated in accordance with the provisions of my country's Income Tax Law is recognized in the annual resolution of the shareholders meeting.

Adjustments to income tax payable in previous years are included in current income tax.

Deferred tax

Deferred income tax is a temporary calculation based on the carrying amount of assets and liabilities in the financial statements and the tax basis for calculating taxable income.

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Deferred income tax liabilities are generally recognized for all taxable temporary differences, while deferred income tax assets are recognized when it is likely that taxable income can be used to deduct income tax deductions arising from temporary differences.

Taxable temporary differences related to investment in subsidiaries, affiliates and joint agreements are recognized as deferred income tax liabilities, but if the combined company can control the timing of the reversal of the temporary differences, and the temporary differences are likely to be without reversal in the foreseeable future are excluded. The deductible temporary differences related to this type of investment will be recognized as deferred income tax assets only if it is likely to have sufficient taxable income to realize the temporary differences, and within the scope expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed on each balance sheet date, and the carrying amount is reduced for those that are no longer likely to have sufficient taxable income to recover all o r part of their assets. Those who were not previously recognized as deferred tax assets are also reviewed on each balance sheet date, and are likely to generate taxable income in the future for the recovery of all or part of their assets, and increase the carrying amount.

Deferred tax assets and liabilities are measured by the current tax rate for expected liability settlement or asset realization. The tax rate is based on the tax rate and tax law that has been legislated or substantively legislated on the balance sheet date. The measurement of deferred income tax liabilities and assets reflects the tax consequences arising from the way the combined company expects to recover or settle the carrying amount of its assets and liabilities on the balance sheet date.

Current and deferred tax for the year

Current and deferred income taxes are recognized in profit and loss, but the current and deferred income taxes related to items recognized in other comprehensive income or directly included in equity are respectively recognized in other comprehensive income or directly included in equity.

5. Major sources of uncertainty in material accounting judgments, estimates and ssumptions

When the combined company adopts accounting policies, the management must make relevant judgments, estimates and assumptions based on historical experience and other relevant factors for those who cannot easily obtain relevant information from other sources. Actual results may differ from estimates.

The combined company takes the economic impact caused by the COVID-19 epidemic into consideration in major accounting estimates, and the management will continue to review the estimates and basic assumptions. If the revision of the estimate only affects the current period, it is recognized in the current period of the revision; if the revision of the accounting estimate affects both the current period and the future period, it is recognized in the current period and the future period of the revision.

The main source of uncertainty in estimates and assumptions -the useful life of real estate, plant and equipment

As mentioned in Note 4 (8), the combined company examines the estimated service life of real estate, plant and equipment on each balance

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sheet date.

6. Cash and cash equivalents

Cash on hand and working fund Bank cheques and demand deposits	December 31, 2021 $ 5,250 115,007 $ 120,257	December 31, 2020	December 31, 2020
			$ 3,559 157,619 $ 161,178

7. Current financial assets at fair value through other comprehensive income

Investment of equity instruments － Domestic investment Listed stocks Quintain Steel Co., Ltd. Luxe Electric Co., Ltd. Unlisted (counter) stocks Smokey Joe's Co., Ltd.	December 31, 2021 $ 275,040 37,397 26,790 $ 339,227	December 31, 2020	December 31, 2020
			$ 145,934 - 32,790 $ 178,724

The combined company invests in the above-mentioned equity in accordance with strategic purposes and expects to make a profit through the investment. The management of the combined company believes that if the fair value's fluctuations of these investments are included in the profit and loss, it is inconsistent with the aforementioned investment plan, so they choose to designate these investments as through other comprehensive income measured at fair value.

8. Current financial assets at amortized cost

Current Domestic investment Trust account (1) Non-current Domestic investment Pledged time deposits with the original expiry date more than 3 months (2)	December 31,2021 $ 33,267 $ 11,000	December 31,2020	December 31,2020
			$ 18,522 $ 11,000

(1) Since October 2017, the combined company has established the trust account of Cathay United Bank in accordance with the law. As of December 31, 2020 and 2021, the amounts that are collected in advance due to the issuance of gift certificates and should be delivered to the Cathay United Bank Trust are 19,263 (In Thousands of NTD) and 11,167 (In Thousands of NTD).
(2) For information on pledge of financial assets measured at amortized cost, please refer to Note 30.
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9. Accounts receivable

Accounts receivable Measured by amortized cost Total carrying amount	December 31, 2021 $ 13,030	December 31, 2020	December 31, 2020
			$ 13,935

The average credit period of the combined company's accounts receivable is within 30 days. The policy adopted by the combined company is to only conduct transactions with individuals and corporate organizations with good credit, and the combined company’s customer group is large and unrelated. The concentration of credit risk is not high and is mostly cash transactions, so the risk of financial loss caused by relevant defaults is limited.

The combined company recognizes the loss allowance of accounts receivable according to lifetime expected credit losses. The lifetime expected credit losses are calculated using a provision matrix, which takes into account the past default records of the customer and the current financial situation. According to the credit loss history experience of the combined company, there is no significant difference in the loss patterns of different customer groups. Therefore, the provision matrix does not further differentiate the customer groups, and only sets the rate of expected credit losses based on the accounts receivable overdue days. However, historical experience shows that the average credit period is within 30 days, so the impact of the rate of expected credit losses is limited.

The combined company measures the loss allowance of accounts receivable according to the provision matrix as follows:

December 31, 2021

December 31, 2021
Not overdue Rate of expected credit losses 0% Total carrying amount $ 11,594 loss allowance （Lifetime expected credit losses） - amortized cost $ 11,594 December 31, 2020 Not overdue Rate of expected credit losses 0% Total carrying amount $ 7,987 loss allowance （Lifetime expected credit losses） - amortized cost $ 7,987	Overdue 1～60 days 0% $ 870 - $ 870 Overdue 1～60 days 0% $ 567 - $ 567	Overdue 61～90 days 0%`～`0.1% $ 565 - $ 565 Overdue 61～90 days 0%`～`0.1% $ 2,472 - $ 2,472	Overdue 91～120 days 0.1%`～`0.5% $ 1 - $ 1 Overdue 91～120 days 0.1%`～`0.5% $ 2,804 - $ 2,804	Overdue more than 120 days 0.5%`～`1% $ - - $ - Overdue more than 120 days 0.5%`～`1% $ 105 - $ 105	Total
					$ 13,030 -
					$ 13,030 Total
Rate of expected credit losses Total carrying amount loss allowance （Lifetime expected credit losses） amortized cost
					$ 13,935 -
					$ 13,935

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10.Inventory

Room equipment and other Ingredients and beverages Commodity	December 31, 2021 $ 6,929 4,585 306 $ 11,820	December 31, 2020	December 31, 2020
			$ 6,674 4,042 376 $ 11,092

From January 1 to December 31, 2021 and 2020, the hotel’s operating, room catering and leisure costs and other related costs are as follows:

Food and beverage costs Room cost Other costs		Year 2021 $ 187,019 156,844 24,339 $ 368,202		Year 2020
				$ 209,203 171,939 28,180 $ 409,322

11.Subsidiary

(1) Subsidiaries included in consolidated financial statements

The compilation of this consolidated financial statement is as follows:

The name of the investment company The company	Name of subsidiary Chateau Fulang Co., Ltd.	B u s i n e s s n a t u r e Engaged in the operation of hotels and restaurants	Percentage of equityheld（％） December 31, 2021 December 31, 2020 47 47	explanatio
			December 31, 2021 47
				`－`

(2) Information on subsidiaries with significant non-controlling interests

Name of subsidiary Chateau Fulang Co., Ltd.	The proportion of equity held and voting rights of non-controlling interests	The proportion of equity held and voting rights of non-controlling interests
	December 31, 2021 53%	December 31, 2020
		53%

Please refer to Attached Table 3 for the main business place and country information of company registration.

Profit and loss allocated to non-controlling interests

		Year 2020
	(	$ 2,562)
December 31, 2021 $ 129,225	December 31, 2020
		$ 134,070

The summary financial information of the following subsidiaries is compiled based on the amount before the elimination of inter-company transactions:

Chateau Fulang Co., Ltd.

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December 31, 2021 December 31, 2020 Current assets $ 11,225 $ 27,968 Non-current assets 364,494 325,744 Current liabilities ( 126,003 ) ( 94,911 ) Non-current liabilities ( 1,498) ( 1,439) Equity $ 248,218 $ 257,362 Equity attributed to: Owner of the company $ 118,993 $ 123,292 Non-controlling interests 129,225 134,070 $ 248,218 $ 257,362 Year 2021 Year 2020 Operating income $ 21,793 $ 21,195 Net loss and total comprehensive profit and loss for the period ($ 9,143) ($ 4,834) Net loss and total comprehensive profit and loss attributed to： Owner of the company ( $ 4,298 ) ( $ 2,272 ) Non-controlling interests ( 4,845) ( 2,562) ($ 9,143) ($ 4,834) Cash flow Operating activities $ 1,064 $ 158 Investment activities ( 46,755 ) ( 17,561 ) Financing activities 29,500 32,000 Net cash inflow ($ 16,191) $ 14,597 12. Investments accounted for using equity method December 31, 2021 December 31, 2020 Investments in Associates Individually insignificant associate $ 3,574 $ 4,482 The summary information of Individually insignificant associate is as follows: Year 2021 Year 2020 The combined company's share Net loss this year and total comprehensive profit and loss ($ 908) ($ 18)	December 31, 2020	December 31, 2020
	( (	$ 27,968 325,744 94,911 ) 1,439) $ 257,362 $ 123,292 134,070 $ 257,362 Year 2020
	$ 21,195 ($ 4,834) ( $ 2,272 ) ( 2,562) ($ 4,834) $ 158 ( 17,561 ) 32,000 $ 14,597 December 31, 2020
	(	$ 18)

The combined company obtained an Individually insignificant associate in 2020, and its use of Equity method of associate's profit and loss and other comprehensive income share are recognized based on associate's financial statements that have not been audited by an accountant during the same period. However, the management of the combined company believes that the above-mentioned financial statements of the investee company have not been checked by accountants and have not yet had a significant impact.

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13.Property, plant and equipment

Statement of changes in Property, plant and equipment is detailed in attached table 5.

The depreciation of the Property, plant and equipment of the combined company is calculated on a straight-line basis based on the following durability years:

Housing and construction
Main building	48 years
Staff dorm	32~50 years
Other	3~20 years
Transportation equipment	3~5 years
Office equipment	2~14years
Hydropower equipment	3~20 years
Landscape gardening	2~15 years
Miscellaneous equipment	2~20 years

The business appliance of the combined company is recorded at the actual cost when it is acquired, and the cost is transferred when it is actually damaged. For setting the amount of real estate, plant and equipment used as loan guarantee, please refer to Note 30.

14.Rental agreement

(1) right-of-use asset

right-of-use asset Carrying amount Land Building Transportation equipment Office equipment Added right-of-use asset depreciation expense of right-of-use asset Land Building Transportation equipment Office equipment	December 31, 2021 $ 2,381 46,685 7,170 - $ 56,236 Year 2021 $ 3,586 $ 1,305 13,870 4,725 88 $ 19,988	December 31, 2020	December 31, 2020
			$ 3,686 60,548 8,309 88 $ 72,631 Year 2020
			$ 3,944 $ 1,304 14,058 4,965 161 $ 20,488

In addition to the above-mentioned additional and recognized depreciation expenses, the consolidated company’s right-of-use assets did not undergo major sublease and depreciation from January 1 to December 31, 2021 and 2020.

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(2) lease liability

lease liability
lease liability Carrying amount Current Non-current	December 31, 2021 $ 16,983 $ 34,237	December 31, 2020
			$ 14,058 $ 51,572

The range of discount rate of lease liability is as follows:

Land Building Transportation equipment Office equipment	December 31, 2021 1.61% 1.53%`～`1.61% 1.53%`～`1.61% 1.50%	December 31, 2020
		1.61% 1.53%`～`1.61% 1.53%`～`1.61% 1.50%

(3) Important lease activities and terms

The combined company leases the above-mentioned transportation equipment and office equipment for 3 to 5 years and 4 years respectively.

The combined company also leases certain land and buildings for office and operational use. The lease period is 4-8 years and 2-20 years.

(4) Other lease information

her lease information
Short-term lease expenses Low-value asset lease expenses Variable lease payments not included in the measurement of lease liability Total cash outflow from lease		Year 2021 $ 2,572 $ 1,349 $ 1,630 $ 24,480		Year 2020
				$ 1,407 $ 1,330 $ 1,536 $ 23,655

The combined company chooses to apply the recognition exemption to certain office equipment leases that qualify for short-term leases and leases of low-value assets, and does not recognize related right-of-use asset and lease liability for these leases.

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15.Investment Property

December 31, 2021	December 31, 2020 $ 543,729 4,414 $ 548,143 Building Total $ - $ 541,153 5,235 7,811 $ 5,235 $ 548,964 $ - $ - 718 ) ( 718 ) 103) ( 103) $ 821) ($ 821) $ 4,414 $ 548,143 $ 5,235 $ 548,964 - 28,000 - 13,780 $ 5,235 $ 590,744 $ 821 ) ( $ 821 ) 103) ( 103) $ 924) ($ 924) $ 4,311 $ 589,820	December 31, 2020	December 31, 2020	December 31, 2020
		$		543,729 4,414 548,143 Total
		$
		) ) ) ) ) )
( ( ( ( ( (	$ - 5,235		( ( ( ( ( (	$ 541,153 7,811 $ 548,964 $ - 718 ) 103) $ 821) $ 548,143 $ 548,964 28,000 13,780 $ 590,744 $ 821 ) 103) $ 924) $ 589,820
	$ 5,235
	$ - 718 103
	$ 821
	$ 4,414
	$ 5,235 - -
	$ 5,235
	$ 821 103
	$ 924
	$ 4,311

The Investment Property of the combined company did not undergo any material additions, dispositions and impairment from January 1 to December 31, 2021 and 2020.

The fair value of the Investment Property of the combined company on December 31, 2021 was 1,186,613 (In Thousands of NTD). The fair value is measured by the independent evaluation company Evermore Valuation Firm on the Balance Sheet Date based on the level 3 input value. The evaluation is conducted with reference to market evidence of similar real estate transaction prices.

The subsidiary of the combined company leases out the Investment Property owned by it in 2020, and the lease period is 5-10 years. The rent is calculated with reference to the rent of the neighboring shopping mall and adjusted according to the agreement of the lease contract, and the rent is collected on a monthly basis. The lessee does not have the right of bargain purchase of Investment Property at the end of the lease term. The fair value of the Investment Property was approximately 34,343 (In

29 -

Thousands of NTD) as of December 31, 2021. The fair value is measured by the independent evaluation company Evermore Valuation Firm on the Balance Sheet Date based on the level 3 input value. The evaluation is conducted with reference to market evidence of similar real estate transaction prices. The fair value of the Investment Property was approximately 14,233 (In Thousands of NTD) as of December 31, 2020. The combined company’s management has assessed that there is no price drop. The fair value has not been evaluated by an independent evaluator and is only evaluated by the combined company’s management, considering the transaction situation of real estate.

The combined company leases out Investment Property under operating lease and will receive the following total lease payments in the future:

will receive the following total lease payments in the future:
Year 1 Year 2 Year 3 Year 4 Year 5 More than 5 years	December 31, 2021
		$ 1,870 1,469 670 670 670 2,065 $ 7,414

All Investment Property of the combined company is its own equity. For information on Investment Property mortgage, please refer to Note 30.

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16.Intangible asset

Franchising Computer software license Cost Balance as of January 1, 2020 Additions Disposal ( Balance as of December 31, 2020 Accumulated amortization Balance as of January 1, 2020 ( Additions ( Disposal Balance as of December 31, 2020 ( Net as of December 31, 2020 Cost Balance as of January 1, 2021 Additions Disposal ( Balance as of December 31, 2021 Accumulated amortization Balance as of January 1, 2021 ( Additions ( Disposal Balance as of December 31, 2021 ( Net as of December 31, 2021	Franchising	December 31, 2021 December 31, 2020 $ 292,928 $ 337,513 562 1,878 $ 293,490 $ 339,391 Computer software license Other Total $ 5,933 $ 124 $ 1,099,366 458 - 3,632 - - ( 1,489) $ 6,391 $ 124 $ 1,101,509 ( $ 2,994 ) ( $ 124 ) ( $ 713,451 ) ( 1,519 ) - ( 50,089 ) - - 1,422 ($ 4,513) ($ 124) ($ 762,118) $ 1,878 $ - $ 339,391 $ 6,391 $ 124 $ 1,101,509 75 - 2,451 - - ( 352) $ 6,466 $ 124 $ 1,103,608 ( $ 4,513 ) ( $ 124 ) ( $ 762,118 ) ( 1,391 ) - ( 48,301 ) - - 301 ($ 5,904) ($ 124) ($ 810,118) $ 562 $ - $ 293,490	December 31, 2021 December 31, 2020 $ 292,928 $ 337,513 562 1,878 $ 293,490 $ 339,391 Computer software license Other Total $ 5,933 $ 124 $ 1,099,366 458 - 3,632 - - ( 1,489) $ 6,391 $ 124 $ 1,101,509 ( $ 2,994 ) ( $ 124 ) ( $ 713,451 ) ( 1,519 ) - ( 50,089 ) - - 1,422 ($ 4,513) ($ 124) ($ 762,118) $ 1,878 $ - $ 339,391 $ 6,391 $ 124 $ 1,101,509 75 - 2,451 - - ( 352) $ 6,466 $ 124 $ 1,103,608 ( $ 4,513 ) ( $ 124 ) ( $ 762,118 ) ( 1,391 ) - ( 48,301 ) - - 301 ($ 5,904) ($ 124) ($ 810,118) $ 562 $ - $ 293,490	December 31, 2021 December 31, 2020 $ 292,928 $ 337,513 562 1,878 $ 293,490 $ 339,391 Computer software license Other Total $ 5,933 $ 124 $ 1,099,366 458 - 3,632 - - ( 1,489) $ 6,391 $ 124 $ 1,101,509 ( $ 2,994 ) ( $ 124 ) ( $ 713,451 ) ( 1,519 ) - ( 50,089 ) - - 1,422 ($ 4,513) ($ 124) ($ 762,118) $ 1,878 $ - $ 339,391 $ 6,391 $ 124 $ 1,101,509 75 - 2,451 - - ( 352) $ 6,466 $ 124 $ 1,103,608 ( $ 4,513 ) ( $ 124 ) ( $ 762,118 ) ( 1,391 ) - ( 48,301 ) - - 301 ($ 5,904) ($ 124) ($ 810,118) $ 562 $ - $ 293,490	December 31, 2020	December 31, 2020	December 31, 2020
		( ( ( ( ( (			$		337,513 1,878 339,391 Total
					$
					) ) ) )
( ( ( ( ( ( ( (	$ 1,093,309 3,174 1,489) $ 1,094,994 $ 710,333 ) 48,570 ) 1,422 $ 757,481) $ 337,513 $ 1,094,994 2,376 352) $ 1,097,018 $ 757,481 ) 46,910 ) 301 $ 804,090) $ 292,928		( ( ( (	$ 124 - -		( ( ( ( ( ( ( (	$ 1,099,366 3,632 1,489) $ 1,101,509 $ 713,451 ) 50,089 ) 1,422 $ 762,118) $ 339,391 $ 1,101,509 2,451 352) $ 1,103,608 $ 762,118 ) 48,301 ) 301 $ 810,118) $ 293,490
				$ 124
				$ 124 - -
				$ 124
				$ -
				$ 124 - -
				$ 124
				$ 124 - -
				$ 124
				$ -

The investment and management contract for the recreational facility area in the seaside area of the Kenting Forest Recreation Area signed by the combined company and the Forestry Bureau of the Executive Yuan Agriculture Committee clearly stipulates that the ownership of real estate and facilities built on the land of the Forestry Bureau of the Agriculture Committee of the Executive Yuan belongs to Forestry Bureau of the Executive Yuan Agriculture Committee, the relevant agreement is detailed in Note 31. Therefore, the combined company lists the cost of building real estate and facilities as the cost of obtaining franchising.

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The above-mentioned intangible asset with limited useful life is calculated the amortization expense based on the following useful life on a straight-line basis: Franchising 2 to 30 years Computer software license 1 to 5 years Other intangible asset 5 years

17.Fund for improvement and expansion

According to the articles of association of the company, the annual net profit will retain 20% of the special reserve as an expansion fund. The funds in the fund account are dedicated to special funds, and are limited to the expansion of new operating bases for building, operating equipment, operating working fund or Bank guarantees and other related operations. As of December 31, 2020 and 2021, the carrying amount of funds for improvement and expansion is 25,388 (In Thousands of NTD) and 8,002 (In Thousands of NTD) mainly invested in bank time deposits.

The changes in fund for improvement and expansion are as follows:

Initial balance Purchase property, plant and equipment Year-end balance		Year 2021 $ 8,002 17,386 $ 25,388		Year 2020
				$ 2 8,000 $ 8,002

18.Other assets

Current Temporary payments Non-current Prepayments for equipment Refundable deposits	December 31, 2021 $ 177 $ 3,981 3,783 $ 7,764	December 31, 2020	December 31, 2020
			$ 127 $ 3,521 3,999 $ 7,520

Refundable deposits are mainly vehicle deposits required for leasing operations.

19.Borrowing

(1) short-term debt

short-term debt
Collateralized borrowing (Note 30) Annual interest rate	December 31, 2021 $ 30,000 1.23%	December 31, 2020
			$ 30,000 1.50%

(2) short-term notes and bills payable（Note 30）

December 31, 2021

Guarantee/Acceptan ce Agency Commercial paper payable IBFC		- 32 Par value $ 90,500		- Discount amount $ 178		Carrying amount $ 90,322	Interest rate range 0.862%	Name of collateral
								Property

December 31, 2020

December 31, 2020
Guarantee/Acceptan ce Agency Par value Commercial paper payable IBFC $ 61,000 Long-term debt payable Collateralized borrowing (Note 1) Credit loan (Note 2) Minus: the part due within one year	Discount amount Carrying amount $ 226 $ 60,774 December 31, 2021 $ 2,033 277,500 279,533 72,033 $ 207,500	Interest rate range Name of collateral 0.862% Property December 31, 2020		Name of collateral

			$ 34,135 181,666 215,801 93,768 $ 122,033

(3) Long-term debt payable
Note1 ： Changhua Bank and First Bank, which expire in February 2022(note29), and the annual interest rates for 2021 and 2020 are 1.40% and 1.23%～ 1.40% respectively.
Note2 ： Several companies including Taishin Bank and Yuanta Bank will expire before September 2024, with annual interest rates ranging from 1.35% to 1.46% and 1.30% to 1.46%, respectively.
(4) The restrictions of financial ratio on long-term loans are as follows: Taishin bank

Debt ratio (not higher than) 100% Times interest earned (not less than) 2.5times Net tangible (not less than) 1.5 billion NT dollars

The above financial ratios and restrictions are based on the annual consolidated financial statements reviewed by accountants. The consolidated company has complied with the above financial ratio restrictions in 2021.

Yuanta Bank

Debt ratio (not higher than) 100% Times interest earned (not less than) 5.0times Net tangible (not less than) 1.2 billion NT dollars

Taipei Fubon Bank Debt ratio (not higher than) 100% Times interest earned (not less than) 5.0times Net tangible (not less than) 1.2 billion NT dollars

The above financial ratios and restrictions are based on the annual consolidated financial statements reviewed by accountants and the second quarter consolidated financial statements reviewed. The consolidated company has complied with the above financial ratio restrictions.

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Shin Kong Bank Debt ratio (not higher than) 100% Times interest earned (not less than) 2.5times Net tangible (not less than) 1.2 billion NT dollars

The above financial ratios and restrictions are based on the annual individual financial statements reviewed by accountants. The Individual company has complied with the above financial ratio restrictions in 2021. The company has already complied with the above financial ratio restrictions.

20.Other payables and other current liabilities

Other payables Salaries and bonuses payable Pay in lieu of untaken annual leave Royaltiespayable Equipment payment payable Insurance payable Utility bills payable Employee bonus payable Other Other current liabilities Accommodation vouchers in advance Meal coupons in advance Travel voucher in advance Other	December 31,2021 $ 32,445 6,953 5,525 4,904 3,986 2,727 1,748 13,653 $ 71,941 $ 48,193 8,647 1,780 5,567 $ 64,187	December 31,2020	December 31,2020
			$ 31,128 9,711 9,513 8,642 4,076 2,971 2,420 10,092 $ 78,553 $ 41,125 9,300 1,382 3,830 $ 55,637

21.Retirement benefit plans

(1) Defined contribution plans

(2)

The pension system of the "Labor Pension Act" applicable to the company and its subsidiaries in the company is a government-managed retirement plan. According to 6% of employees' monthly salary, the pension is allocated to the individual account of the Labor Insurance Bureau. Defined benefit plans

The pension system of the company in the company in accordance with my country's "Labor Standards Law" is a government-managed defined benefit plans. The payment of employee pensions is calculated based on the length of service and the average salary of the 6 months before the approved retirement date. These companies provide retirement pensions based on 2% of the total monthly salary of their employees, which are deposited in a special account of Bank of Taiwan by the Labor Retirement Reserve Supervision Committee in the name of the committee. Before the end of the year, if the estimated balance in the special account is insufficient to pay the workers who are estimated to meet the retirement conditions in the next year, the difference will be paid once

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before the end of March of the next year. The special account is managed by the Labor Fund Utilization Bureau of the Ministry of Labor, and the company has no right to influence the investment management strategy.

The amounts of defined benefit plans included in the individual balance sheet are listed as follows:

sheet are listed as follows:
Present value of defined benefit obligation Fair value of plan assets Net defined benefit liability	December 31, 2021 $ 13,827 ( 4,743) $ 9,084	December 31, 2020
	(	(	$ 13,583 4,547) $ 9,036

The changes in net defined benefit liability are as follows:

The changes in net defined	benefit liability	are as follows:
January 1, 2020 Service cost Current service cost Interest expense (income) Recognized in profit and loss Remeasurements Return on plan assets (excluding amounts included in net interest expense) Actuarial loss Recognized in other comprehensive income Employer contributions December 31, 2020 Service cost Current service cost Interest expense (income) Recognized in profit and loss Remeasurements (Next page)	Present value of defined benefit obligation $ 12,653 29 127 156 - 942 942 - ( 168) 13,583 37 102 139	Fair value of plan assets ($ 4,134) - ( 47) ( 47) ( 112 ) - ( 112) ( 422) 168 ( 4,547) - ( 36) ( 36)	Net defined benefit liability
	(	( ( ( ( ( ( ( ( (	$ 8,519 29 80 109 ( 112 ) 942 830 ( 422) - 9,036 37 66 103

(Continued from the previous page)

(Continued from the previous page)
Return on plan assets (excluding amounts included in net interest expense) Actuarial loss Recognized in othe Employer contributions Welfare payment December 31, 2021	Present value of defined benefit obligation $ - 680 680 - ( 575) $ 13,827	Fair value of plan assets ( $ 45 ) - ( 45) ( 690) 575 ($ 4,743)	Net defined benefit liability
	(	( ( ( (	( (	$ 45 ) 680 635 690) - $ 9,084

The company is exposed to the following risks due to the pension system of the " the R.O.C. Labor Standards Law ":

Investment risk: The Labor Fund Utilization Bureau of the Ministry of Labor invests labor retirement funds in domestic (foreign) equity
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securities and debt securities, bank deposits, etc. through its own use and entrusted operations. However, the allocated amount of the planned assets of the company is calculated based on the interest rate not lower than the 2-year fixed deposit rate of the local bank.

Interest rate risk: The decline in the interest rate of government bonds/corporate bonds will increase the present value of defined benefit obligation, but the return on debt investment of planned assets will also increase. The two will partially offset the impact of net defined benefit liability .
Salary risk: The calculation of the present value of defined benefit obligation refers to the future salary of plan members, so the increase in salary of plan members will increase the present value of defined benefit obligation.

The present value of defined benefit obligation of the combined company is actuarial calculation performed by a qualified actuary. The material assumptions of the measurement date are as follows:

Discount Rate Expected salary increase rate	December 31, 2021 0.65% 1.50%	December 31, 2020
		0.75% 1.50%

If the significant actuarial assumptions are subject to reasonably possible changes, the amount of the present value of defined benefit obligation will increase (decrease) as follows, while all other assumptions remain unchanged:

Discount Rate Decrease 0.25% Increase 0.25% Expected salary increase rate Decrease 1.00% Increase 1.00%	December 31, 2021 $ 392 ($ 377) ($ 1,427) $ 1,631	December 31, 2020	December 31, 2020
	( (	( (	$ 408 $ 392) $ 1,485) $ 1,702

Since actuarial assumptions may be related to each other, it is unlikely that a single assumption will change, so the above sensitivity analysis may not reflect the actual changes in the present value of defined benefit obligation.

Contribution amount expected within 1 year Average maturity period of defined benefit obligation	December 31, 2021 $ 690 13years	December 31, 2020	December 31, 2020
			$ 422 13.4years

22.Equity

(1) Share capital of ordinary share

Share capital of ordinary share
Authorized shares (in thousands) Authorized capital Issued and paid shares (in thousands) Issued capital	December 31, 2021 120,000 $ 1,200,000 111,253 $ 1,115,229	December 31, 2020
			120,000 $ 1,200,000 111,523 $ 1,115,229

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Issued ordinary shares have a par value of NT$10 per share, and each share has one voting right and the right to receive dividends. (2) Capital surplus

Capital surplus
Can be used to make up for losses, distribute cash or allocate share capital (Note) Stock issue premium Can only be used to make up for losses Gain on disposal of asset Expiry share option	December 31, 2021 $ 170,581 3 79 $ 170,663	December 31, 2020
			$ 170,581 3 79 $ 170,663

Note: This type of additional paid-in capital can be used to make up for losses. It can also be used to distribute cash or allocate share capital when the company has no losses. However, when the share capital is allocated, it is limited to a certain percentage of the paid-in share capital each year.
(3) Retained earnings and dividend policy

According to the surplus distribution policy of the company's articles of association, if there is a surplus in the annual final accounts, taxes shall be paid in accordance with the law, and after the accumulated losses are made up, another 10% will be set as the legal reserve, and the rest shall be listed or transferred to the Special reserve according to laws and regulations and the articles of association; If there is a balance, and with the accumulated undistributed earnings, the board of directors will draft a surplus distribution proposal and submit it to the shareholders meeting for a resolution to distribute shareholder dividends. For the remuneration distribution policy for employees and directors and supervisors as stipulated in the articles of association of the company, please refer to Note 24 (9) Employee Remuneration and Remuneration of Directors and Supervisors.

In addition, in accordance with the company’s articles of association, the net profit for the current period each year will be distributed in the following order:

To make up for losses
To contribute 10% legal reserve, and from 2011 to 2048, the company must contribute 20% special reserve as an expansion fund for the year when the company is a single operating base, and an expansion fund account shall be established for the annual contribution funds.
To contribute special reserve in accordance with other laws and regulations.

After the balance after the distribution in the preceding paragraph is added to the undistributed earnings at the beginning of the period and the undistributed earnings adjustment for the current period, the board of directors shall draft a distribution plan in accordance with the dividend policy and submit it to the shareholders meeting for resolution.

The 20% special reserve contributed in accordance with the provisions of the second subparagraph of the first paragraph:

The funds in the expansion fund account are for special purposes only, and are limited to the construction of the library, operating equipment, operating working fund or bank guarantees for the expansion of new operating bases;
The investment target of its expanded fund account is mainly based on stable profits, and is limited to investment in fixed deposits, government
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bonds, bond funds, ETF funds and fund of funds. Please refer to Note 17 of the financial report for the relevant contribution.

The contribution can be stopped unless one of the following conditions is met:
(1) The total amount of investment required to obtain a new operating base must be more than 500 million NT dollars, and the new operating base has been profitable for two consecutive years.
(2) The special reserve has reached twice the paid-in capital.

The company is at a stage of stable growth, and will grasp the changes in internal and external environments in order to achieve sustainable business development. When the board of directors draws up a profit distribution plan, it should consider the company's future capital expenditure budget and capital needs, and measure the necessity of using surplus to support funds to determine the amount of surplus retained or distributed, the amount of dividends or bonuses distributed to shareholders in cash, the distribution of cash shall not be less than 30%, and the distribution of stocks shall not exceed 70%.

Legal reserve should be contributed until its balance reaches the total amount of the company's actual share capital. Legal reserve can be used to make up for losses. When the company has no losses, the portion of the legal reserve exceeding 25% of the total paid-in share capital can be contributed as share capital and still be contributed in cash.

The company has made a recommendation based on No. Financial-Supervisory-Securities-Auditing-1010012865, No. Financial-Supervisory-Securities-Auditing-1010047490, No. Financial-Supervisory-Securities-Auditing-1030006415 and "International Financial Reporting Standards (IFRSs)". Questions and Answers on the Application of Special Reserve" and other regulations to mention and transfer the special reserve.

The company's regular shareholders' meetings in May 2020 and 2021 resolved and approved the 2020 and 2019 earnings distribution proposals as follows:

follows:
Legal reserve Special reserve Reversal of special surplus reserve according to law Cash dividend Cash dividend per share (NT$)		Appropriation of Earnings
		Year 2020 $ 8,693 $ 17,386 $ 27,200) $ 55,762 $ 0.5	Year 2019
	(		$ 4,000 $ 23,454 $ - $ 22,305 $ 0.2

The company’s case of earnings distribution for 2021 proposed by the board of directors on February 23, 2022 is as follows:

Legal reserve Special reserve Cash dividend	Appropriation of Earnings $ 1,987 3,975 22,305	Cash dividend per share (NT$)
		$ 0.2

The case of earnings distribution for 2021 is still pending the resolution of the shareholders' meeting on May 25, 2022.

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(4) Non-controlling interests

(4) Non-controlling interests
Initial balance Net loss for the year Year-end balance Net Revenue Room income Catering income Other income		Year 2021 $ 134,070 4,845) $ 129,225 Year 2021 $ 428,714 152,156 7,048 $ 587,918		Year 2020
	(		(	$ 136,632 2,562) $ 134,070 Year 2020
				$ 529,973 196,200 10,496 $ 736,669

23. Net Revenue

(1) Contract balance

Contract balance
Contract liability－Current Deposit received in advance	December 31, 2021 $ 32,720	December 31, 2020 $ 28,223		January 1, 2020
				$ 20,219

The amount of performance obligations that have been satisfied from contract liability at the beginning of the year recognized as income in the current period is as follows:

current period is as follows:
Contract liability from the beginning of the year Deposit received in advance		Year 2021 $ 27,315		Year 2020
				$ 18,702

(2) Contracts with customers that has not yet been completed

The amortized transaction price of performance obligations that have not yet been fully satisfied and the expected timing of recognition as revenue are as follows. These amounts do not include the estimated amount of restricted changes in consideration:

changes in consideration:
Deposit received in advance Fulfill in 2020 Fulfill in 2021		Year 2021 $ - 32,720 $ 32,720		Year 2020
				$ 28,223 - $ 28,223

24.Profit before tax

(1) Other income and net expenses

Disposal of benefits (losses) of property, plant and equipment		Year 2021 $ 4		Year 2020
				$ 7

(2) Interest income

Interest income
Bank deposits Other		Year 2021 $ 39 15 $ 54		Year 2020
				$ 59 20 $ 79

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(3) Other income

(3) Other income
government grants income Rental income Dividend income Other (4) Other benefits and losses Loss on disposal of intangible assets (5) Miscellaneous expenses depreciation expense Investment Property related expenses Other (6) Financial costs Interest on bank loans Interest on lease liability Minus: The amount included in the cost of eligible assets (listed under Real estate, plant and equipment)		Year 2021 $ 19,040 2,822 4,136 5,432 $ 31,430 Year 2021 $ 51 Year 2021 $ 1,710 1,011 1,802 $ 4,523 Year 2021 $ 5,024 934 5,958 447) $ 5,511		Year 2020
				$ 18,556 3,020 - 7,374 $ 28,950 Year 2020
				$ 67 Year 2020
				$ 1,762 1,058 1,383 $ 4,203 Year 2020
	(		(	$ 5,487 1,181 6,668 601) $ 6,067

The relevant information of capitalization of interest is as follows:

The amount of capitalization of interest The interest rate of capitalization of interest	Year 2021 $ 447 1.23%`～`1.46%	Year 2020
		$ 601 1.12%`～`1.46%

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(7) Depreciation and amortization

Depreciation and amortization
Depreciation expense summarized by function Operating cost Operating expenses Miscellaneous expenses Amortization expense summarized by function Operating cost Operating expenses		Year 2021 $ 53,998 16,235 1,710 $ 71,943 $ 46,910 1,391 $ 48,301		Year 2020
				$ 60,415 16,978 1,762 $ 79,155 $ 48,570 1,519 $ 50,089

(8) Employee benefits expenses

Employee benefits expenses
Short-term employee benefits Salary Labor and health insurance Directors' remuneration Other Retirement benefit plans (Note 21) Defined contribution plans Defined benefit plans Summary by function Operating cost Operating expenses		Year 2021 $ 197,944 22,042 530 10,464 230,980 9,453 103 9,556 $ 240,536 $ 162,922 77,614 $ 240,536		Year 2020
				$ 207,656 20,722 480 11,107 239,965 9,383 109 9,492 $ 249,457 $ 170,990 78,467 $ 249,457

(9) Remuneration of employees and remuneration of directors and supervisors In accordance with the provisions of the articles of association, the company shall contribute at least 1% and not more than 1% of the employee compensation and directors and supervisors' compensation based on the current year's pre-tax benefits before deducting the distribution of employee compensation and directors and supervisors' compensation. The remuneration of employees and the remuneration of directors and supervisors for 2021 and 2020 were resolved by the board of directors on February 23, 2022 and February 5, 2021 as follows:

Estimated ratio

ary 5, 2021 as follows: Estimated ratio
Remuneration of employee Remuneration of Directors and Supervisors	Year 2021 1% 0.2569%	Year 2020
		1% 0.0448%

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2. Amount

Amount
Remuneration of employee Remuneration of Directors and Supervisors	Year 2021 $ 234 60	Year 2020
		$ 1,071 48

If the amount of consolidated financial statements still changes after the publication date of the annual consolidated financial statements, they shall be treated according to the changes in accounting estimates and adjusted and recorded in the following year.

There is no difference between the actual allotment amount of remuneration of employees and remuneration of Directors and Supervisors in 2020 and 2019 and the amount recognized in the financial reports of each year.

For information on the remuneration of employees and remuneration of Directors and Supervisors resolved by the company’s board of directors, please go to the "Public Information Observatory" of the Taiwan Stock Exchange.

25. Income tax

(1) The main components of income tax recognized in profit and loss

Current income tax expense Current tax expense recognized in the current year Tax on undistributed profit Income tax adjustments on prior years Deferred income tax Current tax expense recognized in the current year		Year 2021 $ 178 1,706 130 2,014 669 $ 2,683		Year 2020
				$ 18,204 - 141 18,345 5 $ 18,350

A reconciliation of income before income tax and income tax expense recognized in profit or loss was as follows:

Profit before tax of continuing operations Income tax expense at the statutory rate Unrecognizable tax expenses Unrecognizable tax benefits Tax on undistributedprofit Deduction of unrecognized losses Income tax adjustments on prior years		Year 2021 $ 18,220 $ 2,885 870 4,635 ) 1,706 1,727 130 $ 2,683		Year 2020
	(		(	$ 103,380 $ 20,324 - 2,980 ) - 865 141 $ 18,350

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(2) Income tax expense recognized in other comprehensive income

(3) (4)	Year 2021 Year 2020 Deferred tax Produced this year Related to remeasurement of defined benefit obligation $ 127 $ 166 Current income tax liabilities December 31, 2021 December 31, 2020 Current income tax liabilities Income tax payable $ 20,203 $ 26,766 Deferred tax assets and liabilities The changes in deferred tax assets and liabilities are as follows: Year 2021		Year 2020
		$ 166 December 31, 2020

Year 2021
Deferred income tax assets Temporary difference Pay in lieu of untaken annual leave Defined benefit retirement benefit plans Deferred income tax liabilities Temporary difference Land value increment tax Year 2020 Deferred income tax assets Temporary difference Pay in lieu of untaken annual leave Defined benefit retirement benefit plans Deferred income tax liabilities Temporary difference Land value increment tax	Initial balance $ 1,942 1,807 $ 3,749 $ 1,118 Initial balance $ 1,884 1,704 $ 3,588 $ 1,118		Recognized in profit and loss $ 552 ) 117) $ 669) $ - Recognized in profit and loss $ 58 63) $ 5) $ -	Recognized in other comprehensive income $ - 127 $ 127 $ - Recognized in other comprehensi ve income $ - 166 $ 166 $ -	Year-end balance $ 1,390 1,817 $ 3,207 $ 1,118 Year-end balance
		( ( (

		( (				$ 1,942 1,807 $ 3,749 $ 1,118

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(5) Deduction for unused losses of deferred tax assets is not recognized in the consolidated balance sheet

consolidated balance sheet
Loss deduction Expires in 2027 Expires in 2028 Expires in 2029 Expires in 2030 Expires in 2031	December 31, 2021 $ 3,818 6,769 6,775 4,776 8,634 $ 30,772	December 31, 2020
			$ 3,818 6,769 6,775 4,325 - $ 21,687

(6) Verification situation of income tax

The company's and its subsidiaries' profit-making business income tax declarations before 2019 have been approved by the Revenue Service Office.

26.Earnings per Share

It is used to calculate the earnings per share and the weighted average number of ordinary shares as follows:

Net profit for the year Net income available to common shareholders of the parent Number of shares Used to calculate the weighted average number of ordinary shares of basic earnings per share The impact of potential ordinary share with dilution effect: Remuneration of employee Used to calculate the ordinary share weighted average number of dilutive earnings per share		Year 2021 $ 20,382 Year 2021 111,523 11 111,534

If the company of the combined company chooses to issue the remuneration of employees in stocks or cash, when calculating the dilutive earnings per share, it is assumed that the remuneration of employees will adopt the method of issuing shares, and it will be included in the weighted average circulation when the potential ordinary share has a dilution effect. The number of foreign shares is used to calculate dilutive earnings per share. When calculating the dilutive earnings per share before the resolution of the remuneration of employees to issue shares in the next year’s shareholders’ meeting, the dilution effect of these potential ordinary shares will continue to be considered.

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27.Capital risk management

The combined company’s capital structure consists of the combined company’s net debt (i.e. borrowings minus cash) and equity (i.e. share capital, additional paid-in capital, retained earnings and other equity items). The combined company conducts capital management to ensure that all departments can be raised before continuing to operate, and maximize shareholder returns by optimizing the balance of debt and equity. The combined company does not have to comply with other external capital regulations.

28.Financial instruments

(1) Fair value information - Financial instruments that are not measured at fair value

The combined company’s non-measured at fair value financial instruments, such as cash, financial assets measured at amortized cost (including current and non-current), receivables, other receivables, fund for improvement and expansion, refundable deposits (other non-current assets), short-term loan, short-term notes and bills payable, payables, other payables, long-term loans (including due within one year) and deposits received, etc. The carrying amount is a reasonable approximation of Fair value.

(2) Fair value information - financial instruments measured at fair value based on repeatability
Fair value level

December 31, 2021

Financial assets measured at fair value through Other comprehensive income Investment of equity instruments Domestic listed (counter) stocks Domestic unlisted (counter) stocks December 31, 2020 Financial assets measured at fair value through Other comprehensive income Investment of equity instruments Domestic listed (counter) stocks Domestic unlisted (counter) stocks		Level 1 $ 312,437 - $ 312,437 Level 1 $ 145,934 - $ 145,934		Level 2 $ - - $ - Level 2 $ - - $ -		Level 3 $ - 26,790 $ 26,790 Level 3 $ - 32,790 $ 32,790		Total
								$ 312,437 26,790 $ 339,227 Total
								$ 145,934 32,790 $ 178,724

From January 1 to December 31, 2021 and 2020, there will be no transfer between level 1 and level 2 fair value measurement.

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Financial instruments are adjusted by level 3 Fair value measurement Year 2021

Financial asset measured at fair value through other comprehensive income Financial asset Equity instruments Initial balance $ 32,790 Recognized in other ( 6,000 ) comprehensive income （Unrealized profits and losses of valuation of financial assets measured at fair value through Other comprehensive income） Year-end balance $ 26,790

Year 2020

Year 2020
Financial asset Initial balance Recognized in other comprehensive income（Unrealized profits and losses of valuation of financial assets measured at fair value through Other comprehensive income） Year-end balance	Financial asset measured at fair value through other comprehensive income
	Equity instruments
		$ 31,680 1,110 $ 32,790

Method of measuring the fair value of financial instruments
The fair value of financial asset and financial liability is determined
in the following way:
(1) For financial asset and financial liability with standard terms and conditions and traded in an active market, the fair value of the financial asset and financial liability are determined with reference to market quotations.
(2) The financial asset of the third level fair value measurement held by the combined company is an unlisted (counter) company stock, which is mainly based on the market method to measure the fair value. The estimates or assumptions used are based on the relevant information and estimates of comparable transactions in the market Future cash flow. The main unobservable inputs include discounts without control rights and risk discounts for lack of marketability.
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(3) Types of financial instruments

Types of financial instruments
Financial asset Financial assets measured at amortized cost (Note 1) Financial assets measured at fair value through Other comprehensive income Investment of equity instruments Financial liability Measured by amortized cost (Note 2)	December 31, 2021 $ 206,931 339,227 502,957	December 31, 2020
		$ 216,642 178,724 411,566

Note 1：The balance includes cash, financial assets measured at amortized cost (including current and non-current), receipts, other receivables, fund for improvement and expansion, and refundable deposits (other non-current assets) and other financial assets measured at amortized cost.
Note 2：The balance is the financial liability measured by amortized cost, such as payables, other payables, short-term loans, short-term notes and bills payable, long-term loans (including due within one year) and deposits received.

(4) Objectives and policies of financial risk management

The combined company's main financial instruments include investment of equity instruments, receipts and payables, loans and lease liability, etc. The combined company's financial management department provides services for various business units, coordinates and coordinates the operation of entering the domestic market, and supervises and manages the financial risks related to the combined company's operations by analyzing the internal risk report of the risk according to the degree and breadth of the risk. These risks include market 。 risk (interest rate risk and other price risk), credit risk and liquidity risk

The important financial activities of the combined company are reviewed by the board of directors in accordance with relevant regulations and internal control systems, and internal auditors continue to review compliance with policies and risk limits. The combined company does not trade financial instruments (including derivative financial instruments) for speculative purposes.

1. Market risk

The combined company's operating activities cause the combined company to bear the main financial risks of interest rate changes (see (1) below) and other price risks (see (2) below).

(1) Interest rate risk
Because the combined company borrows funds at a fixed interest rate and a floating interest rate at the same time, interest rate exposure occurs. The combined company manages interest rate risk by maintaining an appropriate combination of fixed and floating interest rates.

The financial asset and financial liability carrying amount of the combined company subject to interest rate exposure on the balance sheet date are as follows:

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With fair value interest rate risk －Financial asset －Financial liability ith cash flow interest rate risk －Financial asset －Financial liability	December 31,2021 $ 11,000 141,542 148,123 309,533	December 31,2020
		$ 11,000 126,404 175,994 245,801

Sensitivity Analysis

The following sensitivity analysis is determined based on the interest rate exposure of non-derivative instruments on Balance Sheet Date. For floating rate liabilities, the analysis method assumes that the amount of liabilities outstanding on the Balance Sheet Date is in circulation during the reporting period. The rate of change used in the company's internal reporting of interest rates to key management is an increase or decrease of 1% in interest rates, which also represents management's assessment of the reasonably possible range of changes in interest rates.

If the interest rate increases by 1% and all other variables remain unchanged, the profit before tax of the combined company in 2021 and 2020 will be reduced by 1,614 (In Thousands of NTD) and 698 (In Thousands of NTD), respectively, mainly because of the combined company’s variable interest rate risk exposure of deposits and loans.

(2) Other price risks

As the combined company invests in domestic listed stocks and unlisted stocks, the risk exposure of equity price is generated. Sensitivity Analysis

If the equity price increases/decreases by 1%, other comprehensive income before taxes in 2021 and 2020 will increase/decrease by 3,392 (In Thousands of NTD) and 1,787 (In Thousands of NTD) due to changes in financial assets measured at fair value through other comprehensive income fair value.

2. Credit risk

Credit risk refers to the risk of the combined company's financial losses caused by the counterparty's default contract obligations. As of the Balance Sheet Date, the maximum credit risk exposure of the combined company that may cause financial losses due to the counterparty's failure to perform its obligations mainly comes from the financial asset carrying amount recognized on the balance sheet.

The counterparties of the combined company are individuals and corporate organizations with good credit, so no significant credit risk is expected.

3. Liquidity risk

The combined company supports the operation of the company by managing and maintaining sufficient cash or liquid financial products. The management of the combined company supervises the use of bank financing facility and ensures compliance with the terms of the loan

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contract.

Bank loans are an important source of liquidity for the combined company. For the unused financing facility of the combined company, please refer to the description of (2) financing facility below.

Since the equity in the capital structure of the combined company is far greater than the liabilities, the cash is sufficient to repay the liabilities, and there is no liquidity risk due to the inability to raise funds to fulfill the contractual obligations.

(1) Liquidity and interest rate risk table of non-derivative financial liability

The following table summarizes the financial liability analysis of the combined company's agreed repayment period based on the due date and undiscounted due amount:

December 31, 2021 Instruments of fixed interest rate Instruments of floating interest rate Liabilities without interest lease liability December 31, 2020 Instruments of fixed interest rate Instruments of floating interest rate Liabilities without interest lease liability		Within 1 year $ 90,500 105,430 102,681 18,314 $ 316,925 $ 61,000 125,350 104,570 14,969 $ 305,889		1～5years $ - 207,709 421 26,692 $ 234,822 $ - 122,037 421 41,002 $ 163,460	More than 5 years
					$ - - - 9,612 $ 9,612 $ - - - 12,685 $ 12,685

(2) Loan Commitments

Loan Commitments
Credit loan facilities Used amount Unused amount Collateralized borrowing facilities Used amount Unused amount	December 31, 2021 $ 280,000 125,000 $ 405,000 $ 150,500 159,500 $ 310,000	December 31, 2020
			$ 210,000 275,000 $ 485,000 $ 201,000 89,000 $ 290,000

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29.Related party transaction

The transactions, account balances, income and expenses between the company and its subsidiaries (which are related parties of the company) are all eliminated at the time of the merger, so they are not disclosed in this Note. Except as disclosed in other Note, the transactions between the combined company and other related parties are as follows:

(1) The name of the related party and its relationship

The name of the related party Related Party Categories Quintain Steel Co., Ltd. The ultimate parent company of the company Guantian Investment Development Co., The parent company of the company Ltd. Asahi Enterprises Corp. Other related parties (The company’s parent company is the company’s legal person director) Chia Chi Sdry Enterprise Co., Ltd. Other related parties (The director of the parent company of the company is the chairman of the company) Wise Co., Ltd. Other related parties (The director of the company is the chairman of the company) Polydo Investment Co., Ltd. Other related parties (The chairman of the company and the chairman of the company are first relatives) Hsin-shih Textile Co., Ltd. Other related parties (The chairman of the company is a director of the company)

(2) Net revenue

Net revenue
Item Net revenue	Type of relatedparty The ultimate parent company of the company Other related parties		Year 2021 $ 1,603 126 $ 1,729		Year 2020
					$ 1,663 101 $ 1,764

The combined company’s sales prices to the parent company and other related parties are comparable to general customers.

(3) Purchase

Purchase
Type of relatedparties Other related parties		Year 2021 $ 4,590		Year 2020
				$ 6,573

The purchase price of the combined company to other related parties is equivalent to that of general manufacturers.

(4) Receivables from related parties

Item Receivables from related parties	The name of the related party The ultimate parent company of the company Other related parties	December 31, 2021 $ 203 16 $ 219	December 31, 2020	December 31, 2020
				$ 135 16 $ 151

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The credit period is within 30 days, and there is no major difference from general manufacturers.

Outstanding amounts receivable from related parties have not received guarantees. The amounts receivable from related parties in 2021 and 2020 is not listed in the loss allowance.

(5) Payables to related parties

Item	Type of relatedparties Other related parties The ultimate parent company of the company	December 31, 2021 $ 1,616 $ 297	December 31, 2021 $ 1,616 $ 297	December 31, 2020 $ 1,222 $ 297	December 31, 2020 $ 1,222 $ 297
Payables to related parties Other payables			$ 1,616 $ 297		$ 1,222 $ 297

The payment period is from 30 days to 55 days, which is not significantly different from the general manufacturer (the general manufacturer’s payment period is 55 days).

The balance of the outstanding amount due to related parties is not guaranteed.

(6) Acquisition of property, plant and equipment

Proceeds

Type of relatedparties／Name Other related parties Wise Co., Ltd		Year 2021 $ 672		Year 2020
				$ 1,784

(7) Lease agreement

Lease agreement	Lease agreement
Item Type of related parties／ Name December 31, 2021 Lease liabilities Other related parties Polydo Co., Ltd. $ 17,161 Type of relatedparties／Name Year 2021 Rental expenses Other related parties Polydo Co., Ltd. $ 2,685		December 31, 2021			December 31, 2020
			$ 17,161		$ 19,549 Year 2020

	$ 2,685			$	2,685

Lease fees include short-term leases and low-value asset lease fees and variable rents that are not index- and rate-dependent. Please refer to Note 14 for the lease period.

Type of relatedparties／Name Year 2021 Interest expense Other related parties Polydo Co., Ltd. $ 297 Advance receipts (listed in other current liabilities) Type of relatedparties December 31,2021 The ultimate parent company of the company $ 1,968 Other related parties 433 $ 2,401		Year 2020
	$ 335 December 31,2020
		$ 2,013 473 $ 2,486

(8) Advance receipts (listed in other current liabilities)
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in other non-current assets） December 31,2021 December 31,2020 $ 156 $ 156 Contractperiod Item Year 2021 Year 2020 The lease term is one year, and the contract is renewed every year Administra tive expenses $ 917 $ 917 The lease term is one year, and the contract is renewed every year Operating cost 865 865 The lease term is one year, and the contract is renewed every year Operating cost 192 159 The lease term is one year, and the contract is renewed every year Other incom 218 218	December 31,2020	December 31,2020	December 31,2020
	Year	$	156 Year 2020
		2021 917 865 192 218
$			$ 917 865 159 218

(11) Compensation of key management personnel

Short-term employee benefits Post-employment benefit		Year 2021 $ 14,420 739 $ 15,159		Year 2020
				$ 15,780 795 $ 16,575

The remuneration of directors and other major management levels is determined by the remuneration committee in accordance with individual performance.

30.Pledged assets

The following assets have been provided as gift certificate performance bond, franchise agreement signing deposit, bank loan and collateral of commercial paper.

Financial assets measured at amortized cost（Pledged time deposit and trust account） Net investment Property Land Net building	December 31,2021 $ 44,267 36,887 88,214 182,345 $ 351,713	December 31,2020	December 31,2020
			$ 29,522 36,990 88,214 165,089 $ 319,815

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31.Significant contingent liabilities and unrecognized contractual commitments

Except for those already mentioned in other notes, the significant commitments and contingencies of the company on Balance Sheet Date are as follows: Significant commitments

(1) The company and the Forestry Bureau of the Agriculture Committee of the Executive Yuan signed a contract for the investment and operation of amusement facilities in the seaside area of the Kenting Forest Recreation Area. The original contract expires on September 30, 2016. The lease term according to the new contract is October 2015. From 1st to September 30th, 2023, the contract stipulates that each renewal period is 8 years, and the number of renewals shall not exceed 4 times (including this contract). The total operating period is from October 23, 1998 It shall not exceed 50 years from the date of calculation. A performance bond of NT$11,000 (In Thousands of NTD) shall be paid at the time of signing the contract. The agreed conditions regarding the company's rent and royalties are as follows:
Rent (Note14)
- The land rent shall be paid for the area covered by the contract
- (Eluanbi Section of Hengchun Township) at the annual interest rate of 5% of the announced land price in the year of contract. The other building rent shall be the buildings and equipment specified in the contract (Provence Hall, Marbella Hall and Positano Hall), pay the building equipment rental at 10% of the present tax value of the house in the year of contract.
Royalty The annual operating royalty payable is based on the

estimated operating income of NT$520 million per year. If the actual operating income is less than NT$520 million each year, it will be collected at NT$14,976 (In Thousands of NTD).

According to the letter of Pingyuzi No. 0964241208 dated November 7, 2007 from the Forest Affairs Bureau of the Agriculture Committee of the Executive Yuan, the relevant income related to the calculation of royalties is as follows:

follows:
Operating income Room dining income Boutique income SPA and other income Non-operating income Other income		Year 2021
	January 1 to September 30, 2021 $ 287,175 2,097 2,249 705 $ 292,226	October 1 to December 31, 2021 $ 145,280 936 1,232 304 $ 147,752	Total
			$ 432,455 3,033 3,481 1,009 $ 439,978

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Operating income Room dining income Boutique income SPA and other income Non-operating income Other income		Year 2020
	January 1 to September 30, 2020 $ 425,711 3,383 3,396 873 $ 433,363	October 1 to December 31, 2020 $ 127,203 844 1,206 375 $ 129,628	T	o t a l
				$ 552,914 4,227 4,602 1,248 $ 562,991

The land, construction and equipment rentals and operating royalties mentioned in the preceding paragraph shall be paid semiannually from the date of conclusion of the contract, and shall be paid before March 31 and September 30 each year. The basic royalties will be paid at NT$7,488 (In Thousands of NTD) every six months, and the difference will be paid in September of the following year. December 31, 2021 and 2020, the carrying amount of royalty is NT$13,266(In Thousands of NTD) and NT$20,374(In Thousands of NTD).

3. Return of assets

In accordance with the provisions of Article 5, Article 36 and Article 37 of the contract, the construction of the company's facilities on the land provided by the Forest Service Bureau of the Agriculture Committee of the Executive Yuan shall be carried out in the name of the Forest Service Bureau of the Agriculture Committee of the Executive Yuan. After the completion, the ownership will belong to the Forestry Bureau of the Agriculture Committee of the Executive Yuan free of charge. The so-called facilities include the completed real estate (Provence Hall, Marbella Hall and Positano Hall). And upon the expiration or termination of the entrusted operation period, all properties and articles owned by the Forestry Bureau of the Agriculture Committee of the Executive Yuan will be returned unconditionally.

(2) As of December 31, 2020 and 2019, the company has signed related contracts for the repair of franchising equipment, and the unpaid amounts are all NT$126 (In Thousands of NTD).
(3) As of December 31, 2020 and 2019, the company has committed to purchase real estate, plant and equipment, and the unpaid amount is NT$8,542 (In Thousands of NTD) and NT$8,504 (In Thousands of NTD).

32.Other matters

The company was affected by the global pandemic of COVID-19, operating income from July to September 2021 and January to September 2021 decreased by 58% and 30% respectively compared with the same period last year. As of December 31, 2021 and 2020, the company has applied for salary and working capital subsidies from the government, and received subsidies of NT$19,040 (In Thousands of NTD) and NT$ 18,556 (In Thousands of NTD) (Note 24). As of the date of publication of this individual financial statement, the company continues to evaluate the economic impact of the epidemic on the company.

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33.Note Disclosure Matters

(1) Information about significant transactions:
Financings provided. (Attached Table 1)
Endorsement/guarantee provided: None.
Marketable securities held (excluding investments in subsidiaries and associates) : (Attached Table 2)
Cumulative purchase or sale of the same securities amounts to NT$300 million or more than 20% of the paid-in capital: None.
The amount of real estate acquired is NT$300 million or more than 20% of the paid-in capital: None.
Disposal of real estate with an amount of NT$300 million or more than 20% of the paid-in capital: None.
The amount of purchase and sale of goods with related parties reaches NT$100 million or more than 20% of the paid-in capital: None.
Receivables from related parties amounting to NT$100 million or more than 20% of paid-in capital: None.
Information about the derivative financial instruments transaction: None.
Other business relationships and important transactions and amounts between parent and subsidiary companies and between subsidiaries, none.
(2) Information about reinvestment business. (Note 3)
(3) Investment information of China: None.
(4) Information on major shareholders: the name, amount and proportion of shareholders with a shareholding ratio of 5% or more. (Attached Table 4)
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34.Department Information

The information provided to chief operating decision makers for allocating resources and evaluating departmental performance, focusing on the operating entity of each product or service delivered or provided. The combined company should report the following departments:

Departmental revenue and operating results

The income and operating results of the continuing operations of the combined company are analyzed by the reporting department as follows:

Year 2021 Revenue from external customers Departmental benefits (losses) Interest income Other income Other benefits and losses Financial costs Miscellaneous expenses Share of loss of associates and joint ventures accounted for using equity method Profit before tax Year 2020 Revenue from external customers Departmental benefits (losses) Interest income Other income Other benefits and losses Financial costs Miscellaneous expenses Share of loss of associates and joint ventures accounted for using equity method Profit before tax	Chateau International Development Company Limited $ 566,844 $ 6,634 $ 716,051 $ 92,224	Chateau Fulang Co.,Ltd. $ 21,793 ($ 9,541) $ 21,195 ($ 7,009)	Adjustment and write-off ($ 719) $ 636 ($ 577) ($ 509)		Total
		( (	( ( (	( ( ( ( ( ( ( ( (	$ 587,918 $ 2,271 ) 54 31,430 51 ) 5,511 ) 4,523 ) 908 ) $ 18,220 $ 736,669 $ 84,706 79 28,950 67 ) 6,067 ) 4,203 ) 18 ) $ 103,380

Departmental profit and loss refers to the profit earned by each department, excluding non-operating income and expenses and income tax expense. This measurement amount is provided to the chief operating decision maker to allocate resources to the department and measure its performance.

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Chateau International Development Company Limited Financings provided January 1 to December 31, 2021 Attached Table 1 Unit: Thousands of New Taiwan Dollars

No.	Financing Company	Entities to which the company may loan funds.	Account subject	Related parties or not	The highest amount in this period	Ending balance	Actual spending amount	Interest rate range （％）	The nature of the loan	Business transaction amount	Reasons why short-term financing is necessary	The amount of allowance and doubtful debts	Collateral	Collateral	For individual objects Fund loan and limit （Note 1）	Fund loan Total limit （Note 2）
													Name	Value
0	The company	Chateau Fulang Hotel Co., Ltd.	Other receivables－ related parties	Yes	$ 150,000	$ 150,000	$ -	1.80%	Short-term financing	$ -	Operating capital	$ -	None	-	$ 376,873	$ 753,746

Note 1：The Procedure for Lending Funds to Other Parties stipulates that the company's loan limit for a single object is 20% of the company's net value at the end of the period. Note 2：Procedure for Lending Funds to Other Parties stipulates that the company’s capital loan and total limit is 40% of the company’s net value at the end of the period.

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Chateau International Development Company Limited Marketable securities held December 31, 2021 Attached Table 2 Unit: Thousands of New Taiwan Dollars

Holding company	Marketable Securities Type and Name (Note)	Relationship with the securities issuer	Account		End of term	End of term		Note
				Unit／Number of shares	Carrying amount	Shareholding ratio（％）	Fair value
The company The company The company	Quintain Steel Co., Ltd. Luxe electric Co., Ltd. Smokey Joe's Co., Ltd.	Ultimate parent company None None	Financial assets measured at fair value through Other comprehensive income－ Current `〞` `〞`	13,786,494 1,568,000 3,000,000	$ 275,040 37,397 26,790	4.03 1.15 17.39	$ 275,040 37,397 26,790

Note ：The securities mentioned in this table refer to the stocks, bonds, beneficiary certificates and securities derived from the above items that fall within the scope of the International Financial Reporting Standard No. 9

"Financial Instruments".

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Chateau International Development Company Limited Information of the investee company, location... etc. January 1 to December 31, 2021 Attached Table 3 Unit: Thousands of New Taiwan Dollars

The name of the investment company	The name of investee company	Area	Main business items	Original investment amount	Original investment amount	Held at the end of the period	Held at the end of the period		Investee company Current period profit(loss)	Investment profit (loss) recognized in the currentperiod	Note
				At the end of the period	End of last year	Number of shares	Ratio％	Carrying amount
The Company Chateau Fulang Hotel Co., Ltd.	Chateau Fulang Hotel Co., Ltd. Park Ave Shared Space Company	Taiwan Taiwan	Leisure hotel Industry Leisure service industry	$ 112,919 4,500	$ 112,919 4,500	9,447,188 450,000	47 45	$ 119,187 3,574	( $ 8,634 ) ( 2,019 )	( $ 4,298 ) -	Note 1 Note 2

Note 1：It is calculated based on the financial statements of the investee company audited by other accountants in 2021.

Note 2：It is only necessary to list the profit and loss amount of each subsidiary recognized by the company for direct reinvestment and each invested company that adopts the equity method, and the rest is exempt.

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Chateau International Development Company Limited Information on major shareholders December 31, 2021 Attached Table 4

Name of major shareholder	Shares	Shares
	Number of shares held (shares)	Shareholding ratio
Guantian Investment Development Co., Ltd. Zhongxin Development Co., Ltd. CMC Magnetics Corporation Concord International Securities Co., Ltd. Zhongjia International Investment Co., Ltd.	32,824,581 22,491,623 16,191,421 8,685,943 5,928,269	29.43% 20.16% 14.51% 7.78% 5.31%

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Chateau International Development Company Limited Statement of changes in real estate, plant and equipment January 1 to December 31, 2021 and 2020 Attached Table 5 Unit: Thousands of New Taiwan Dollars

Cost Balance as of January 1, 2020 Added Disposal Reclassification Transfer to investment property Transfer to depreciation expense `（`Note`）` Balance as of December 31, 2020 Accumulated Depreciation Balance as of January 1, 2020 Disposal Depreciation Transfer to investment property Balance as of December 31, 2020 Net as of December 31, 2020 Cost Balance as of January 1, 2021 Added Disposal Reclassification Transfer to depreciation expense `（`Note`）` Balance as of December 31, 2021 Accumulated Depreciation Balance as of January 1, 2021 Disposal Depreciation Reclassification Balance as of December 31, 2021 Net as of December 31, 2021		Land $ 201,588 - - 5,376 2,576 ) - $ 204,388 $ - - - - $ - $ 204,388 $ 204,388 - - - - $ 204,388 $ - - - - $ - $ 204,388		Buildings $ 548,506 860 - 19,658 5,235 ) - $ 563,789 $ 41,531 - 14,309 718) $ 55,122 $ 508,667 $ 563,789 9,457 - 36,443 - $ 609,689 $ 55,122 - 14,495 - $ 69,617 $ 540,072		Transportation equipment $ 3,247 - - - - - $ 3,247 $ 1,262 - 679 - $ 1,941 $ 1,306 $ 3,247 198 - - - $ 3,445 $ 1,941 - 464 - $ 2,405 $ 1,040	Office equipment $ 27,497 1,266 ( 1,046 ) - 2,669 - $ 30,386 $ 22,657 ( 1,039 ) 1,414 - $ 23,032 $ 7,354 $ 30,386 2,855 - ( 14,379 ) - $ 18,862 $ 23,032 - 1,179 ( 9,497) $ 14,714 $ 4,148		Hydropower equipment $ 158,784 115 - - - - $ 158,899 $ 36,784 - 11,700 - $ 48,484 $ 110,415 $ 158,899 - - - - $ 158,899 $ 48,484 - 7,862 - $ 56,346 $ 102,553	Landscape gardening $ 70,327 - - - - - $ 70,327 $ 47,868 - 3,260 - $ 51,128 $ 19,199 $ 70,327 1,067 ( 30 ) - - $ 71,364 $ 51,128 ( 30 ) 3,395 - $ 54,493 $ 16,871	Business appliance $ 28,268 3,019 - - - ( 2,361) $ 28,926 $ - - - - $ - $ 28,926 $ 28,926 1,737 - - ( 1,737) $ 28,926 $ - - - - $ - $ 28,926		Miscellaneous equipment $ 393,650 1,538 355 ) 272 - - $ 395,105 $ 149,182 355 ) 24,841 - $ 173,668 $ 221,437 $ 395,105 5,908 1,694 ) 22,889 - $ 422,208 $ 173,668 1,614 ) 22,720 9,497 $ 204,271 $ 217,937	Unfinished projects and equipment to be inspected $ 81,521 24,299 ( 110 ) ( 25,351 ) ( 2,669 ) - $ 77,690 $ - - - - $ - $ 77,690 $ 77,690 39,904 - ( 59,643 ) - $ 57,951 $ - - - - $ - $ 57,951		Total
	(		( (				( ( ( (			( (	( (	( ( ( (		( ( ( (	( ( ( ( ( ( ( ( ( (	$ 1,513,388 31,097 1,511 ) 45 ) 7,811 ) 2,361) $ 1,532,757 $ 299,284 1,394 ) 56,203 718) $ 353,375 $ 1,179,382 $ 1,532,757 61,126 1,724 ) 14,690 ) 1,737) $ 1,575,732 $ 353,375 1,644 ) 50,115 - $ 401,846 $ 1,173,886

Note ：The business appliance is transferred to the depreciation expense when it is actually damaged.

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AI assistant

Chateau — Audit Report / Information 2021

52188_rns_2021-11-19_34dc86b1-1ad9-45b8-9665-79a436fde717.pdf

Chateau International Development Company Limited and subsidiaries

Consolidated Financial Statement and Audit Report of the Accountant Year 2021 and 2020

Statement for the consolidated financial statements of affiliated enterprises

Independent Auditors’ Report (Consolidated Financial Statements)

Opinion

Basis of Opinion

Key Audit Matter

Corresponding audit procedures

Other items

Responsibilities of Management and Governing body for consolidated financial statements

The accountant's responsibility for auditing the consolidated financial statements

Deloitte & Touche

Accountant LEE, CHI-CHEN

Accountant YANG, CHAO-CHIN

Chateau International Development Company Limited and Subsidiaries Consolidated Balance Sheet December 31, 2021 and 2020

Chateau International Development Company Limited and subsidiaries Consolidated Statement of Comprehensive Income January 1 to December 31, 2021 and 2020

Chateau International Development Company Limited and subsidiaries Consolidated Statement of Changes In Equity January 1 to December 31, 2021 and 2020

Chateau International Development Company Limited and subsidiaries Consolidated Cash Flow Statement January 1 to December 31, 2021 and 2020

Chateau International Development Company Limited and subsidiaries Notes to the Consolidated Financial Statement January 1 to December 31, 2021 and 2020 （ Unless otherwise specified, the amount is in thousands of New Taiwan Dollar ）

1. GENERAL

2. THE AUTHORIZATION OF FINANCIAL

3. APPLICATION OF NEW AND REVISED INTERNATIONAL FINANCIAL REPORTING STANDARDS

4. Summary Explanation of Significant Accounting Policies

(1) Statement of Compliance

(2) Basis of Preparation

(3) Standards for distinguishing between current and non-current assets and liabilities Current assets include:

(4) Combination basis

(5) Foreign currency

(6) Inventories

(7) Investment in affiliated companies

(8) Property, Plant and Equipment

(9) Investment Property

(10) Operating franchise

(11) Intangible asset

1. Obtained separately

2. Derecognition

(12) Property, plant and equipment, right-of-use asset, intangible asset and assets' impairment related to contract cost.

(13) Financial instruments

1. Financial asset

A. Financial assets measured at amortized cost

(3) Derecognition of financial asset

(14) Income recognition

(15) Lease

(16) Borrowing cost

(17) Government grants

(18) Employee benefits

(19) Income tax

1. Current tax

5. Major sources of uncertainty in material accounting judgments, estimates and ssumptions

The main source of uncertainty in estimates and assumptions -the useful life of real estate, plant and equipment

6. Cash and cash equivalents

7. Current financial assets at fair value through other comprehensive income

8. Current financial assets at amortized cost

9. Accounts receivable

December 31, 2021

10.Inventory

11.Subsidiary

13.Property, plant and equipment

14.Rental agreement

(1) right-of-use asset

(3) Important lease activities and terms

(4) Other lease information

15.Investment Property

16.Intangible asset

17.Fund for improvement and expansion

18.Other assets

19.Borrowing

December 31, 2021

December 31, 2020

Yuanta Bank

20.Other payables and other current liabilities

21.Retirement benefit plans

22.Equity

(4) Non-controlling interests

23. Net Revenue

(1) Contract balance

24.Profit before tax

Chateau Audit Report / Information 2021