CHEM — Audit Report / Information 2020

Dec 22, 2020

Chung-Hsin Electric and Machinery Manufacturing Corp.

Parent Company Only Financial Statements for the Years Ended December 31, 2020 and 2019 and Independent Auditors’ Report

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INDEPENDENT AUDITORS’ REPORT

To The Board of Directors and the Stockholders Chung-Hsin Electric and Machinery Manufacturing Corp.

Opinion

We have audited the parent company only financial statements of Chung-Hsin Electric and Machinery Manufacturing Corp. (the Corporation), which comprise the parent company only balance sheets as of December 31, 2020 and 2019, and the parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the report of the other independent accountants, as described in the other matters section of our report, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Corporation as of December 31, 2020 and 2019, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audit in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Corporation in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for the year ended December 31, 2020. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

The description of the key audit matters of the parent company only financial statements for the year ended December 31, 2020 are as follows:

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Engineering Revenue Recognition

Key Audit Matters statements

Refer to the Note 4(19) to the accounting policy of revenues recognition.

The Corporation business included electric power engineering construction and design. Contract revenue should be recognized by reference to the stage of completion of the performance obligation over time. Performance obligation should be measured by reference to the stage of completion of the contract activity. The stage of completion of a contract is measured by the proportion of contract costs incurred for work performed to date to the estimated total costs for the contract which are base on significant accounting estimation and judgment of management. Therefore, the recognition of construction revenues is considered as a key audit matter by decision of CPA.

Key Audit procedures

By conducting the tests of controls, we obtained an understanding of the Corporation’s recognition of construction revenues and of the design and implementation of related controls. We also perform corresponding audit procedures as follows:

1. Review the amount and estimate cost of matter contracts to confirm the accuracy of the information in the profit or loss on construction.

2. Test the accuracy of the construction listing on percentage of completion calculation and confirm the accuracy of the information in the accounting system.

3. Acquire and review the statements about the matter changing of construction, which is prepared by the corporation.

Other Matter

Certain investments which were accounted for under the equity method based on the financial statements of the investees were audited by other independent accountants. Therefore, Our Opinion to the above parent company only financial statements, insofar as it related to certain investments which were accounted for under the equity method are based solely on the reports of other independent accountants.

The investments accounted for under the equity method balance of NT 2,292,513 thousands and NT 1,413,910 thousands, which represented 8.58% and 7.75% of the total assets as of December 31, 2020 and 2019, the related shares of profit of associates and joint ventures accounted for using equity method in the amount of NT 245,603 thousands and NT 275,686 thousands, which represented 14.11% and 35.57% of the income from continuing operations before income tax for the years ended December 31, 2020 and 2019.

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

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management

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determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including the Audit Committee, are responsible for overseeing the Corporation’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements

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

• As part of an audit in accordance with the auditing standards generally accepted in the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: 1. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• 1. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Corporation’s internal control.

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

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Corporation’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Corporation to cease to continue as a going concern.

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

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

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

We also provide those charged with governance with statements that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent company only financial statements for the year ended December 31, 2020 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partner on the audit resulting in this independent auditors’ report is Lin Chin Feng and Wu Meng Ta

Crowe (TW) CPAs Republic of China March 30, 2021

Notice to Reader

The accompanying financial statements are intended only to present the financial position, results of operations and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such financial statements are those generally accepted and applied in the Republic of China.

For the convenience of readers, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

CHUNG-HSIN ELECTRIC AND MACHINERY MANUFACTURING CORPS. PARENT COMPANY ONLY BALANCE SHEETS

DECEMBER 31, 2020 AND 2019

(In Thousands of New Taiwan Dollars)

ASSETS	December 31,2020	% 2 - 9 - - 7 11 - - 13 12 3 1 58 - 22 12 4 2 - 1 1 - - 42 100 3 - 10 - 10 - 3 - 1 - 2 3 - 32 6 18 1 2 1 28 60 18 6 5 3 7 15 2 ( 1 ) 40 100	December 31,2019	% 1 - 9 - - 6 - - - 15 14 3 2 50 1 21 17 5 3 - 1 1 - 1 50 100 4 - 16 - 5 - 3 - - 1 3 4 - 36 - 18 2 2 1 23 59 23 2 6 5 6 17 - ( 1 ) 41 100
	Amount ＄ 605,350 12,242 2,358,320 79,717 1 1,934,718 2,764,393 16,007 68,821 3,533,755 3,083,130 795,234 229,851 15,481,539 60,727 5,762,488 3,217,193 1,119,923 527,191 2,619 270,999 116,270 61,518 89,537 11,228,465 ＄ 26,710,004 ＄ 758,953 10,200 2,644,955 27,686 2,649,669 21,194 679,071 11,966 393,009 - 497,072 950,000 15,973 8,659,748 1,422,555 4,902,770 340,696 555,346 178,595 7,399,962 16,059,710 4,761,343 1,455,475 1,203,581 858,940 1,948,855 4,011,376 538,980 ( 116,880 ) 10,650,294 ＄ 26,710,004		Amount ＄ 157,643 12,968 1,657,738 59,556 - 1,135,360 43,804 705 663 2,777,512 2,570,665 467,790 242,725 9,127,129 151,006 # 3,918,732 3,162,799 970,328 533,441 - 94,753 99,498 64,065 130,582 9,125,204 ＄ 18,252,333 ＄ 653,584 - 2,993,236 - 715,503 36,302 522,472 7,674 89,816 169,745 581,061 700,000 14,232 6,483,625 - 3,354,492 340,696 318,213 178,622 4,192,023 10,675,648 4,200,000 421,024 1,143,143 858,940 1,048,760 3,050,843 21,698 ( 116,880 ) 7,576,685 ＄ 18,252,333
CURRENT ASSETS： Cash and cash equivalents (Note 6) Current financial assets at fair value through profit or loss (Note 6) Contract assets, current (Notes 6 and 7) Notes receivable, net (Note 6) Notes receivable due from related parties, net (Notes 6 and 7) Accounts receivable, net (Note 6) Accounts receivables-related parties (Notes 6 and 7) Other accounts receivables, net Other accounts receivables-related parties (Note 7) Inventory - manufactory(Note 6) Inventory - Construction(Notes 6 and 8) Prepayments (Notes 6 and 7) Other current assets (Note 8) Total current assets NONCURRENT ASSETS： Non-current financial assets at fair value through profit or loss (Note 6) Investments under equity method (Note 6) Property, plant and equipment(Notes 6, 7 and 8) Right-of-use assets (Note 6) Investment property, net(Notes 6 and 8) Intangible assets (Note 6) Deferred income tax assets (Note 6) Guarantee deposits paid (Note 8) Long-term notes , accounts and overdue receivables (Note 6) Other noncurrent assets (Notes 6, 7 and 8) Total noncurrent assets TOTAL ASSETS LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES： Short-term debts (Notes 6 and 8) Current financial liabilities at fair value through profit or loss (Note 6) Contract liabilities, current (Notes 6 and 7) Notes payable Accounts payable Accounts payable - related parties (Note 7) Other payables (Note 6) Other payables-related parties (Note 7) Current tax liabilities Provisions, current (Note 6) Lease liabilities, current (Note 6) Current portion of long-term liabilities (Note 6) Other current liabilities Total current liabilities NONCURRENT LIABILITIES： Bonds payable (Note 6) Long-term debts (Note 6) Deferred income tax liabilities (Note 6) Lease liabilities, noncurrent (Note 6) Other noncurrent liabilities (Notes 6 and 7) Total noncurrent liabilities Total liabilities Equity attributable to owners of parent Common stock (Note 6) Capital surplus (Note 6) RETAINED EARNINGS (Note 6) Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity(Note 6) Treasury shares (Note 6) Total Equity TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

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

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CHUNG-HSIN ELECTRIC AND MACHINERY MANUFACTURING CORPS. PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE (Notes 6 and 7) OPERATING COST (Notes 6 and 7) GROSS PROFIT UNREALIZED GROSS PROFIT ON SALES TO SUBSIDIARIES AND ASSOCIATES REALIZED GROSS PROFIT ON SALES TO SUBSIDIARIES AND ASSOCIATES NET GROSS PROFIT OPERATING EXPENSES (Notes 6 and 7) Marketing expenses General and administrative expenses Research and development expenses Expected credit impairment losses (gains) Total operating expenses OPERATING INCOME NON-OPERATING INCOME AND EXPENSES Interest income (Notes 6 and 7) Other income (Notes 6 and 7) Other incomes and losses (Note 6) Financial cost (Notes 6 and 7) Share of profit (loss) of associates and joint ventures accounted for using equity method (Note 6) Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX (Note 6) PROFIT OTHER COMPREHENSIVE INCOME (Note 6) Items that may not be reclassified to profit or loss Remeasurements of defined benefit pension plans Share of other comprehensive income associates of and joint ventures accounted for using equity method Items that may be reclassified subsequently to profit or loss Share of other comprehensive income associates of and joint ventures accounted for using equity method TOTAL OTHER COMPREHENSIVE INCOME, NET OF INCOME TAX TOTAL COMPREHENSIVE INCOME FOR THE PERIOD EARNINGS PER SHARE (Note 6) Basic earnings per share Diluted earnings per share	For theyears ended December 31,	For theyears ended December 31,
	2020	2019

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

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CHUNG-HSIN ELECTRIC AND MACHINERY MANUFACTURING CORPS.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

(In Thousands of New Taiwan Dollars)

					RETAINED EARNINGS	RETAINED EARNINGS	RETAINED EARNINGS					OTHER EQUITY	OTHER EQUITY
													Unrealized gain
		Common Stock	Capital surplus	Legal reserve	Special reserve	Unappropriated earnings			Total Retained earnings	Exchange differences on translating foreign operations			(loss) on Financial assets at fair value through other comprehensive	Total Other equity		Treasury stock		Total Equity
													incomes
BALANCE, JANUARY 1, 2019	＄	4,200,000＄	410,300＄	1,088,659＄	858,678	＄	918,861＄		2,866,198	＄(	132,290	)＄	134,400	＄	2,110＄( 116,880 )＄			7,361,728
Effect of retrospective application		-	-	-	-	(	21,686 )	(	21,686 )		-		-		-	-	(	21,686 )
BALANCE, JANUARY 1, 2019 AS RESTATED		4,200,000	410,300	1,088,659	858,678		897,175		2,844,512	(	132,290	)	134,400		2,110	( 116,880 )		7,340,042
APPROPRITATION AND DISTRIBUTION
OF RETAINED EARNIGS
Legal reserve		-	-	54,484	-	(	54,484 )		-		-		-		-	-		-
Common stock cash dividends		-	-	-	-	(	420,000 )	(	420,000 )		-		-		-	-	(	420,000 )
PROFIT FOR THE PERIOD		-	-	-	-		635,299		635,299		-		-		-	-		635,299
OTHER COMPREHENSIVE INCOME		-	-	-	-	(	8,968 )	(	8,968 )	(	76,689	)	96,277		19,588	-		10,620
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD		-	-	-	-		626,331		626,331	(	76,689	)	96,277		19,588	-		645,919
Adjustments of capital surplus for company's dividends received by subsidiaries		-	9,039	-	-		-		-		-		-		-	-		9,039
Other		-	1,685	-	262	(	262 )		-		-		-		-	-		1,685
BALANCE, DECEMBER 31, 2019		4,200,000	421,024	1,143,143	858,940		1,048,760		3,050,843	(	208,979	)	230,677		21,698	( 116,880 )		7,576,685
APPROPRITATION AND DISTRIBUTION
OF RETAINED EARNIGS
Legal reserve		-	-	60,438	-	(	60,438 )		-		-		-		-	-		-
Common stock cash dividends		-	-	-	-	(	504,000 )	(	504,000 )		-		-		-	-	(	504,000 )
Certificate of entitlement to new shares from convertible bond		-	68,614	-	-		-		-		-		-		-	-		68,614
Changes in capital surplus from investments in associates accounted for using the equity method		-	451	-	-		-		-		-		-		-	-		451
PROFIT FOR THE PERIOD		-	-	-	-		1,527,368		1,527,368		-		-		-	-		1,527,368
OTHER COMPREHENSIVE INCOME		-	-	-	-	(	50,548 )	(	50,548 )		6,124		511,158		517,282	-		466,734
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD		-	-	-	-		1,476,820		1,476,820		6,124		511,158		517,282	-		1,994,102
Conversion of convertible bonds		561,343	939,167	-	-		-		-		-		-		-	-		1,500,510
Adjustments of capital surplus for company’s dividends received by subsidiaries		-	10,815	-	-		-		-		-		-		-	-		10,815
Changes in ownership interests in subsidiaries		-	12,640	-	-	(	12,317 )	(	12,317 )		-		-		-	-		323
Other		-	2,764	-	-		30		30		-		-		-	-		2,794
BALANCE, DECEMBER 31, 2020	＄	4,761,343＄	1,455,475＄	1,203,581＄	858,940	＄	1,948,855＄		4,011,376	＄(	202,855	)＄	741,835	＄	538,980＄( 116,880 )＄			10,650,294

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

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CHUNG-HSIN ELECTRIC AND MACHINERY MANUFACTURING CORPS. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit Before Tax Adjustments to reconcile profit to net cash provided by (used in) operating activities Depreciation Amortization Expected credit impairment losses (gains) Net (Gain) Loss on financial assets or financial liabilities at fair value through profit or loss Interest expenses Interest income Dividend income Share of (profit) loss of associates and joint ventures accounted for using equity method Loss (Gain) on disposal of property, plant and equipment Loss (Gain) on disposal of investment Impairment loss on financial assets Other adjustments to reconcile profit (loss) Net changes in operating incomes and losses which do not affect cash flows Net changes in operating assets and liabilities Increase (decrease) in financial assets mandatorily classified as at fair value through profit or loss (Increase) Decrease in contract assets (Increase) Decrease in notes receivable (Increase) Decrease in notes receivable - related parties (Increase) Decrease in accounts receivables (Increase) Decrease in accounts receivable - related i (Increase) Decrease in other accounts receivables (Increase) Decrease in other accounts receivable - l d i (Increase) Decrease in inventory (Increase) Decrease in prepayments (Increase) Decrease in other current assets Net cash provide by (used in) operating assets (Decrease) Increase in contract liabilities (Decrease) Increase in notes payable (Decrease) Increase in notes payable – related parties (Decrease) Increase in accounts payable (Decrease) Increase in accounts payable – related i (Increase) Decrease in other accounts receivables (Increase) Decrease in other accounts receivable - l d i (Decrease) Increase in provisions (Decrease) Increase in other current liabilities (Decrease) Increase in net defined benefit liability Net cash provide by (used in) operating liabilities Net changes provide by (used in) operating assets and li bili i Total Adjustments Cash provided by (used in) operating activities Cash received for interest Cash received for dividend Cash paid for interest Cash received (paid) for Income tax Net cash provide by (used in) operating activities

For theyears ended December 31, 2020 2019 ＄ 1,740,024 ＄ 775,060 1,057,114 1,225,127 57,093 111,424 ( 1,863 ) ( 1,555 ) 78,233 ( 20,905 ) 59,913 41,909 ( 3,230 ) ( 4,403 ) ( 36 ) ( 6,767 ) ( 372,292 ) ( 226,508 ) ( 1,242 ) 23,889 ( 59,801 ) ( 8,984 ) - 78,090 ( 936 ) ( 81 ) 812,953 1,211,236 - 2,544 ( 703,521 ) ( 851,868 ) ( 20,161 ) ( 7,718 ) ( 1 ) 152 ( 798,441 ) 153,243 ( 2,720,589 ) ( 24,483 ) ( 15,417 ) 2,678 ( 64,273 ) 5,583 ( 1,319,860 ) ( 1,193,634 ) ( 327,444 ) 432,302 12,874 61,012 ( 5,956,833 ) ( 1,420,189 ) ( 348,281 ) 181,900 27,686 34 - ( 7,772 ) 1,934,166 ( 59,599 ) ( 15,108 ) ( 3,878 ) 156,534 90,631 4,292 ( 1,000 ) ( 169,745 ) 116,096 1,741 1,919 ( 38,105 ) ( 8,968 ) 1,553,180 309,295 ( 4,403,653 ) ( 1,110,894 ) ( 3,590,700 ) 100,342 ( 1,850,676 ) 875,402 3,345 4,221 41,172 58,067 ( 37,834 ) ( 28,028 ) ( 85,709 ) ( 103,560 ) ( 1,929,702 ) 806,102

2020 ＄ 1,740,024 1,057,114 57,093 ( 1,863 ) 78,233 59,913 ( 3,230 ) ( 36 ) ( 372,292 ) ( 1,242 ) ( 59,801 ) - ( 936 ) 812,953 - ( 703,521 ) ( 20,161 ) ( 1 ) ( 798,441 ) ( 2,720,589 ) ( 15,417 ) ( 64,273 ) ( 1,319,860 ) ( 327,444 ) 12,874 ( 5,956,833 ) ( 348,281 ) 27,686 - 1,934,166 ( 15,108 ) 156,534 4,292 ( 169,745 ) 1,741 ( 38,105 ) 1,553,180 ( 4,403,653 ) ( 3,590,700 ) ( 1,850,676 ) 3,345 41,172 ( 37,834 ) ( 85,709 ) ( 1,929,702 )

(Continued)

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CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of Investments under equity method Proceeds from disposal of Investments under equity method Refund from capital reduction of investments accounted for using equity method Proceeds from non-current assets as held for sale Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of right-of-use assets Increase in guarantee deposits paid Decrease in guarantee deposits paid Acquisition of Intangible assets Decrease in long-term lease receivables Increase in other noncurrent assets Other investment activities Net cash provide by (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term debts Decrease in short-term debts Decrease in short-term bonds payable Issuing bonds Increase in long-term debts Increase in guarantee deposit received Payment of lease liabilities Increase in other noncurrent liabilities Cash Dividends Paid Other financing activities Net cash provided by (used in) financing activities NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD CASH AND CASH EQUIVALENTS, END OF PERIOD

For theyears ended December 31, 2020 2019 ( 2,061,121 ) ( 236,226 ) - 5,337 307,680 266,662 22,433 - ( 216,828 ) ( 117,137 ) 15,488 587 ( 67,518 ) ( 164,981 ) ( 16,772 ) - - 48,107 ( 2,725 ) - 2,547 3,583 ( 41,472 ) ( 21,827 ) 756,848 22,250 ( 1,301,440 ) ( 193,645 ) 105,368 - - ( 1,416,885 ) - ( 1,300,000 ) 3,001,020 - 1,799,000 3,407,000 4,283 2,764 ( 763,094 ) ( 966,056 ) 33,478 21,065 ( 504,000 ) ( 420,000 ) 2,794 2,206 3,678,849 ( 669,906 ) 447,707 ( 57,449 ) 157,643 215,092 ＄ 605,350 ＄ 157,643

2020 ( 2,061,121 ) - 307,680 22,433 ( 216,828 ) 15,488 ( 67,518 ) ( 16,772 ) - ( 2,725 ) 2,547 ( 41,472 ) 756,848 ( 1,301,440 ) 105,368 - - 3,001,020 1,799,000 4,283 ( 763,094 ) 33,478 ( 504,000 ) 2,794 3,678,849 447,707 157,643 ＄ 605,350

(Concluded)

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

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CHUNG-HSIN ELECTRIC AND MACHINERY MANUFACTURING CORPS. NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2020 and 2019

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

1. HISTORY AND ORGANIZATION

The Corporation

Chung-Hsin Electric and Machinery Manufacturing Corp. (the Corporation), a Republic of China (R.O.C.) corporation, registered in Chung Ho city of New Taipei City, main business operated at No. 25, Wen-Te Rd., Lo Shan Tsun, Guishan Dist., Taoyuan city.

• (a)The Corporation starts in May, 1956 as name in Chung-Hsin factory before and reorganizes to Chung-Hsin Electric and Machinery Manufacturing Corps. in 1962.

• (b)The Corporation is engaged mainly in manufacturing equipments and machinery for power supplying, transmission and distribution; power automation system; generators, air conditioning; incinerator, ash recycling plant; pollution prevent project; turn key project for power supply and control, wind power generator, hydro power generator; producing and trading wireless and microwave communication product; parking management and constructing automatic parking facility, sale and rental residence and building; manufacturing and marking of large gantry 5-Axis machining center; manufacturing and selling of pneumatic-operated and medium voltage switchgear equipments ; production and manufacture of aerospace components, OLED, precision machining for components and semiconductor components.

• (c)The common shares of the Corporation have been listed on Taiwan Stock Exchange since March 8, 1994.

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORIZATION

The parent company only financial statements were approved by the board of directors and authorized for issue on March 30, 2021.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND

INTERPRETATIONS

(1)Effect of adoption of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) in issue and endorsed by the Financial Supervisory Commission, R.O.C. (FSC):

The IFRSs endorsed and issued by the FSC in 2020 were listed below:

Effect of adoption of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) in issue and endorsed by the Financial Supervisory Commission, R.O.C. (FSC): The IFRSs endorsed and issued by the FSC in 2020 were listed below:	Effect of adoption of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) in issue and endorsed by the Financial Supervisory Commission, R.O.C. (FSC): The IFRSs endorsed and issued by the FSC in 2020 were listed below:	Effect of adoption of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) in issue and endorsed by the Financial Supervisory Commission, R.O.C. (FSC): The IFRSs endorsed and issued by the FSC in 2020 were listed below:
New Standards,Amendments And Interpretations Effective Date of IASB
Amendments of IFRS 3	Definition of a Business	January 1, 2020
Amendments of IAS 1 and IAS	Definition of Material	January 1, 2020
8
Amendments of IFRS 9, IAS	Interest Rate Benchmark Reform	January 1, 2020
39 and IFRS 7
Amendments of IFRS 16	Covid-19 - Related Rent Concessions	June 1, 2020(Note)
Note: The FSC allows companies to earlier apply from January 1, 2020.
Except for the following, the	application of the IFRSs endorsed and issued into effect
by the FSC did not have a significant effect on the Corporation’s accounting policies:
A. Amendments of IAS 1 and	IAS 8, “Definition of Material”

The Corporation starts apply the amendments from January 1, 2020. The Corporation changes the material threshold to “could reasonably be expected to influence the users”, adjusts the disclosure of financial statements, and deletes the non-material information that may obscure material information.

B. Amendments of IFRS 16, “Covid-19 - Related Rent Concessions”

The Corporation has applied the practical expedient to COVID-19 related rent

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concessions from January 1, 2020. The practical expedient applies only to rent concessions occurring as a direct consequence of the covid-19 pandemic. The related accounting policies please refer to Note 4. Since the rent concessions in the aforementioned circumstances begin in 2020, the retrospective application of this amendment will not affect the retained earnings on January 1, 2020.

Before adopt this amendment, the Corporation should assess the aforementioned rent concessions is a lease modification or not; if yes, the Corporation should apply the lease modification.

• (2)The impact of the Corporation has not applied the IFRSs in issue and endorsed by FSC: The IFRSs endorsed by the FSC for application with starting date from 2021 were listed below:

New Standards, Amendments And Interpretations Effective Date of IASB Amendments to IFRS 4 Extension of the Temporary Exemption June 25, 2020(Effective from Applying IFRS 9 immediately upon promulgation) Amendments of IFRS 9, IAS Interest Rate Benchmark Reform - January 1, 2021(Note) 39, IFRS 7, IFRS 4 and IFRS Phase 2 16

Note: The Corporation shall apply these amendments prospectively beginning on or after January 1, 2021.

The application of the above new, revised or amended standards and interpretations will not have material impact on the Corporation’s financial statements.

(3)The IFRSs issued by IASB but not endorsed by FSC

The IFRSs issued by IASB but not endorsed by FSC were listed below:

New Standards, Amendments And Interpretations Amendments of IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture IFRS 17 Insurance Contracts Amendments of IFRS 17 Amendments of IAS 1 Classification of Liabilities as Current or Non-current Amendments of IAS 16 Property, Plant and Equipment – Proceeds before Intended Use Amendments of IAS 37 Onerous Contracts - Cost of Fulfilling a Contract Amendments of IFRS 3 Reference to the Conceptual Framework Annual Improvements to IFRS Standards 2018-2020 Amendments of IAS 1 Disclosure of Accounting Policies Amendments of IAS 8 Definition of Accounting Estimates

Effective Date of IASB (Note 1)

Effective date to be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2022 (Note 2) January 1, 2022 (Note 3) January 1, 2022 (Note 4) January 1, 2022 (Note 5) January 1, 2023 January 1, 2023

• Note 1: Unless otherwise stated, the above new standards, amendments and interpretations are effective for annual periods beginning on or after the date mentioned.

• Note 2: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.

• Note 3: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.

• Note 4: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.

• Note 5: The amendments to IFRS 9 will be applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 will be applied prospectively to the fair value measurements on or after the annual reporting

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periods beginning on or after January 1, 2022. The amendments to IFRS 1 will be applied retrospectively for annual reporting periods beginning on or after January 1, 2022.

The Corporation is assessing the potential impact of the new standards and amendments above continuously. The related impact will be disclosed when the Corporation completes the evaluation.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Except for the notes listed. The summary of significant accounting policies listed below is consistent adopted in all reporting periods.

(1) Compliance statement

The parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(2) Basis of preparation

Except for the financial instruments and net defined benefit assets which are measured at the fair value of plan assets less the present value of the defined benefit obligation that are measured at fair value, these parent company only financial statements have been prepared under the historical cost convention. Historical cost is generally based on the fair value of the consideration given in exchange for assets.

The preparation of parent company only financial statements that comply with IFRSs in issue and endorsed by FSC, which requires the use of some important accounting estimates. In the process of applying the Corporation’s accounting policies, management also requires the use of its judgment, involving highly judged or complex items, or involving major assumptions in financial reporting and the estimated items, please refers to Note 5.

(3) Foreign currency

The parent company only financial statements are prepared using the functional currency New Taiwan dollars of the Corporation as the expression currency. In preparing the financial statements of each individual group entity, transactions in currencies other than the entity’s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined.

Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated.

The assets and liabilities of the Corporation’s foreign operations are translated into New Taiwan dollars using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period, unless exchange rates fluctuate significantly during that period, in which case the exchange rates at the dates of the transactions are used. Exchange differences arising, if any, are recognized in other comprehensive income.

When a foreign operation is partially disposed of or sold, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale due to lose control, join control or material influence in foreign operation.

When the foreign operation partially disposed of or sold is a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even the Corporation still retains partial interest in the former foreign

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subsidiary, associate or jointly controlled entity after losing control of the former foreign subsidiary, losing significant influence over the former foreign associate, or losing joint control of the former jointly controlled entity, such transactions should be accounted for as disposal of all interest in these foreign operations.

(4) Classification of current and non-current assets and liabilities

Current assets are assets held for trading purposes and assets expected to be converted to cash, sold or consumed within one year from the balance sheet date. Current liabilities are obligations incurred for trading purposes and obligations expected to be settled within one year from the balance sheet date. Assets and liabilities that are not classified as current are noncurrent assets and liabilities, respectively. The electricity power and engineering construction business cycle is longer than one year. Its related assets and liabilities are classified as current or noncurrent by normal business cycle.

(5) Cash and Cash equivalents

Cash and cash equivalents consist of cash on hand, bank deposit, demand deposits and short-term are readily convertible to known amount of cash; and subject to an insignificant risk of changes in value.

(6) Financial Instruments

Financial assets and financial liabilities of the Corporation is meet one of financial instruments’ contract, are recognized in balance sheets.

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

• A. Financial assets

Financial assets transactions on a regular way purchase or sale are recognized and derecognized using trade date accounting.

• (A) Categories of financial assets

The Corporation has held categories of financial assets are including financial assets at fair value through profit or loss and financial assets at amortized cost.

• a. Financial asset at fair value through profit or loss

• Financial assets at fair value through profit or loss are including mandatorily at fair value through profit or loss or financial assets designated as at fair value through profit or loss. Mandatorily at fair value through profit (loss) includes equity instrument investment that the Corporation does not designate to measure at fair value through other comprehensive profit (loss), and debt instruments that are not measured as amortised cost or fair value through other comprehensive profit or loss investment.

Financial assets at fair value through profit or loss are recognized at fair value, and any changes in the fair value of these financial assets are recognized in profit or loss. These profit or loss is not including any dividends or interests. The method of adoption in fair value pleases refer to Note 12(2).

• b. Financial assets at amortized cost

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

• (a)The financial asset is held within a business model whose objective is to hold

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financial assets in order to collect contractual cash flows; and

(b)The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at amortized cost equals to gross carrying amount determined by the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

Interest income is calculated by applying the effective interest rate to the gross carrying amount of a financial asset, except for:

(a)Purchased or originated credit-impaired financial asset, for which interest income is calculated by applying the credit-adjusted effective interest rate to the amortized cost of the financial asset; and

(b)Financial asset that has subsequently become credit-impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of the financial asset.

• (B) Impairment of financial assets

The Corporation recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables), lease receivables, as well as contract assets.

The Corporation always recognizes lifetime Expected Credit Loss (i.e. ECL) for accounts receivables and lease receivable. For all other financial instruments, the Corporation recognizes lifetime ECL when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on the financial instrument has not increased significantly since initial recognition, the Corporation measures the loss allowance for that financial instrument at an amount equal to 12-month ECL.

Expected credit losses reflect the weighted average of credit losses with the respective risks of a default occurring as the weights. Lifetime ECL represents the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECL represents the portion of lifetime ECL that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date. The Corporation recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account, except for investments in debt instruments that are measured at FVTOCI, for which the loss allowance is recognized in other comprehensive income and does not reduce the carrying amount of the financial asset.

• (C) Derecognition of financial assets

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

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

B. Equity Instruments

Equity instruments issued by the Corporation are classified as equity in accordance with the substance of the contractual arrangements and the definitions of an equity

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instrument.

Equity instrument is the any contracts issued by the Corporation’s residual interest after assets less liabilities. The Corporation issues equity instrument and recognized with acquirement price less direct issuable cost.

The Corporation reacquires the Corporation’s equity instruments recognized and derecognized under equity. The Corporation purchase, disposal, issue or write-down their equity instruments do not recognize in profit or loss.

• C. Financial liabilities

• (A) Subsequently measured

Financial liabilities are subsequently measured at amortised cost using the effective interest method, except the conditions as follows:

Financial liabilities at fair value through profits and losses

Financial liabilities at fair value through profits and losses are including held for trading and designated as at fair value through profit and loss. Financial liabilities at fair value through profit or loss are stated at fair value, with any gains or losses arising on remeasurement recognized in profit or loss.

• (B) Derecognition of financial liabilities

A financial liability is derecognised when the obligation under the liability specified in the contract is discharged or cancelled or expires. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognized in profit or loss.

• D. Convertible bond

The Corporation issues the compound financial instruments, convertible bonds, based on substance of the contract and definition of financial liabilities and equity instruments to classify into financial liabilities and equity at initial recognition, respectively.

On initial recognition, the fair value of liability component is estimated using the prevailing market interest rate for similar nonconvertible instruments. Before conversion option is exercised or the maturity date, it is measured at AC based on the effective interest rate. The embedded non-equity derivatives instruments of liability component are measured at fair value.

To classify in conversion options of equity is equal to full fair value of compound instruments minus the residual amount of the fair value of the separately determined liability component, which recognized as equity after deduct the influence of income tax without subsequent measurement. When the conversion option is exercised, its related liability component and the amount of equity are transferred to capital and capital reserve-issue premium. If the conversion option of the convertible bond has not been executed on the maturity date, the amount recognized in equity will be transferred to the capital reserve-issue premium. The transaction costs related to the issuance of convertible bonds are allocated to the liability of the instrument (as the carrying amount of the liability) and the equity component (as the equity) in proportion to the total price allocated.

(7)Derivative financial instruments

Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value. Any changes in the fair value are recognized in profit or loss. The derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

(8)Hedge Accounting

Cash flow hedge

The Corporation designates partial of hedging instrument (Forward foreign exchange

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contract) for avoiding foreign currency exchange rate risk arising from expected transactions that are highly likely to happen. The effective portion of changes in the fair value of derivatives that are designated and qualified as cash flow hedges is recognized in other comprehensive income.

When the forecast transaction actually occurs and is recognized, the amount initial recognized in other comprehensive gains and losses is transferred from equity to the original cost of the hedged item. The gain or loss relating to the ineffective portion is recognized immediately in profit or loss.

The Corporation only roll forward suspends the hedging accounting when a hedging instrument expires, or is sold, cancelled or executed or a hedge no longer meets the criteria for hedge accounting.

(9)Inventories

The inventory of manufactory comprises raw materials, materials, finished goods and work in progress. At the end of year, inventories are evaluated at the lower of cost and net realizable value, and the individual item approach is used in the comparison of cost and net realizable value. The calculation of net realizable value should be based on the estimated selling price in the normal course of business, net of estimated costs of completion and estimated selling expenses. The cost is determined using the monthly weighted-average method except from equipments and machinery for power supplying, transmission and distribution produced by orders. These inventories cost is determined using the specific method.

The inventory of construction comprises real estate as held for sale, construction in progress and prepayment for land purchases and so on. Contract costs are expensed as incurred. Transactions are recorded based on Completed Contract Method. Prepayment for land purchases will be classified land held for construction site as acquisition of ownership, and then reclassified to construction in progress as active development. The requirements of the interests (borrowing costs) that should be capitalized during the period of active development or start of construction until finished.

(10)Investments Accounted for Using Equity Method

A. Investment in subsidiaries

Subsidiaries are the entities controlled by the Corporation and are accounted for using the equity method by the Corporation.

According to “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, profit and other comprehensive income in the separate financial statements should be the same as profit and other comprehensive income attributable to shareholders of the parent in the consolidated financial statements, and the equity in the separate financial statements should be the same as the equity attributable to shareholders of the parent in the consolidated financial statements.

The Corporation’s share of its subsidiaries’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income. When the Corporation’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Corporation should continue to recognize losses in proportion to its ownership.

Changes in the Corporation’s ownership interests in subsidiaries that do not result in the Corporation losing control over the subsidiaries are accounted for as equity transactions. Any difference between the carrying amount of the subsidiary and the fair value of the consideration paid or received is recognized directly in equity. When the Corporation loses control of a subsidiary, any retained investment is measured at fair value at that date and the difference between the previous carrying

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amount of the subsidiary attributable to the retained interest and its fair value is included in the determination of the gain or loss. In addition, the Corporation shall account for all amounts previously recognized in other comprehensive income in relation to the subsidiary on the same basis as would be required if the Corporation had directly disposed of the related assets and liabilities.

The fair value of any investment retained in the former subsidiary at the date when control is lost is regarded as the cost on initial recognition of an investment in an associate.

Profits and losses from downstream transactions with a subsidiary are eliminated in full. Profits and losses from upstream with a subsidiary and side stream transactions between subsidiaries are recognized in the Parent Company Only financial statements to the extent of interests in the subsidiary that are not related to the Corporation. B. Investments in associates

Associates are all entities over which the Corporation has significant influence but not belong to subsidiaries or joint ventures. Significant influence means has rights of financial and operation decision but not control or join control to investee. Investments in associates are accounted for using the equity method and are initially recognized at cost. The Corporation’s share of its associates’ post-acquisition profits or losses is recognized in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognized in other comprehensive income.

In the case that an associate issues new shares and the Corporation does not subscribe or acquire new shares proportionately, which results in a change in the Corporation’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘investments accounted for under the equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Corporation’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognized in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of. The above adjustment is debit capital surplus exceeds the amount of capital surplus, and then the excess shall be reduced to retain earnings. When the Corporation’s share of losses in an associates equals or exceeds its interest in the associate, including carrying amount in investment of associates under equity method and net investment portfolio to an associates in other long-term equity by the Corporation, is stop to recognize loss. The Corporation recognizes further losses when legal obligation, constructive obligation and the payment for associates happened. If the total of the fair values of the consideration of acquisition and any non-controlling interest in the acquire as well as the acquisition-date fair value of any previous equity interest in the acquire is higher than the fair value of the Corporation’s share of the identifiable net assets acquired, the difference is recorded as goodwill; if less than the fair value of the Corporation’s share of the identifiable net assets acquired, the difference is recognized directly in profit or loss.

The Corporation assess at carrying amount (including Goodwill) of investment where there is an indication to compare recoverable amount (the higher of an asset’s fair value less costs to sell or value in use) with carrying amount for impairment test. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount.

Upon loss of significant influence over an associate, the Corporation stops to use equity method and remeasure any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognized in profit or loss. The Corporation loses significant influence over this associate, the amounts previously recognized in other comprehensive income in relation to the associate on the same basis as would be required if the relevant assets or liabilities were disposed

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of.

Gains or losses on sales from intercompany transactions between the Corporation and its associate are recognized in parent company only financial statement when intercompany transaction is realized through transaction with third parties.

(11)Property, plant and equipment

Property, plant and equipment are stated at cost less accumulated depreciation and impairment to measure, cost includes directly attributable to the acquisition or build assets incremental cost.

Properties in the course of construction for production are carried at cost, less any recognized impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalized in accordance with the IAS 23, ‘Borrowing Costs’. Such properties are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other property assets, commences when the assets are ready for their intended use.

Freehold land is not depreciated.

Property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date. Any change is accounted for as a change in estimate from the date of the change.

An item of property, plant and equipment is derecognized upon disposal or when no future economic benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

(12) Leases

The Corporation assesses whether the contract is (or includes) a lease on the commencement date of the contract. For a contract that contains a lease component and one or more additional lease or non-lease components, a lessee shall allocate the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components.

• A. The Corporation as lessee

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

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Except for the right-of-use assets that meet the definition of investment property, right-of-use assets are presented on a separate line in the consolidated balance sheets. If the lease transfers ownership of the underlying asset to the lessee by the end of the lease term or if the cost of the right-of-use asset reflects that the lessee will exercise a purchase option, the lessee shall depreciate the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise,

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the lessee shall depreciate the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. Lease liabilities

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments less any lease incentives received. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Corporation uses the lessee’s incremental borrowing rate.

When there is a change in a lease term or a change in future lease payments resulting from a change in an index or a rate used to determine those payments, the Corporation remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the parent company only balance sheets.

The Corporation has COVID-19 rent concessions from lessor to adjust rental expense before June 30, 2021. These concessions have no substantive changes to other terms and conditions of the leases. The Corporation has elected the practical expedient for above rent concessions and has not assessed whether these rent concessions are a lease modification. The Corporation recognized the gain from changes in lease payments arising from the rent concessions. The Corporation recognized the gain from lease payment decreased or concessions happened in the periods under right-of-use assets depreciation, and relatively decrease lease liabilities.

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

• B. The Corporation as lessor

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

When a lease includes both land and building elements, the Corporation assesses the classification of each element separately as finance or an operating lease. The lease payments are allocated between the land and the building elements in proportion to the relative fair values of the leasehold interests in the land element and building element of the lease at the inception of a contract. If the allocation of the lease payments can be made reliably, each element is accounted for separately in accordance with its lease classification. When the lease payments cannot be allocated reliably between the land and building elements, the entire lease is generally classified as a finance lease unless it is clear that both elements are operating leases; in which case, the entire lease is classified as an operating lease.

Under finance leases, the lease payments included fixed payments and variable lease payments that depend on an index or a rate. The net investment in the leases is the sum of the present value of the lease receivable and the unguaranteed residual value, plus the initial direct cost, and is expressed as the finance lease receivable. The Corporation aims to allocate finance income over the lease term on a systematic and rational basis term, based on a pattern reflecting a constant periodic rate of return on the Corporation’s net investment in the lease.

Lease payments (less any lease incentives payable) from operating leases are recognized as income on a straight-line basis over the terms of the relevant leases.

(14)Intangible Assets

Intangible assets with finite useful lives that are acquired separately are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized using the straight-line method over the following estimated useful lives.

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The estimated useful life and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate being accounted for on a prospective basis.

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the difference between the net disposal proceeds and the carrying amount of the asset, and are recognized in profit or loss when the asset is derecognized.

(15)Impairment of Non-Financial Assets

The Corporation assesses the recoverable amounts at the end of reporting date whether there is an indication that asset may be impaired. An impairment loss is recognized for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use. A previously recognized impairment loss is reversed only if there has been disappear of impairment situation. The reversal should not exceed its impairment loss had been recognized in prior years.

(16)Provisions

Provisions recognition is the consideration of the risks and uncertainties of the obligations. It is the best estimate of the required expenditure on the obligation to pay off on the balance sheet date.

Loss contract

Loss contract when it is expected that the cost of fulfilling the contractual obligation exceeds the expected economic benefit of the contract, the present obligation to recognize the loss contract is provisions.

(17)Employee benefits

• (A) Short-term employee benefits

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

• (B)Retirement benefits

• a. Defined contribution retirement benefit plans

Payments to defined contribution retirement benefit plans are recognized as an expense when employees have rendered service entitling them to the contributions.

• b. Defined benefit plan

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

Net defined benefit liability (asset) represents the actual deficit (surplus) in the Corporation’s defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

• c. Employees’ and directors’ remuneration

Employees’ remuneration and directors’ remuneration are recognized as

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expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

• d. Termination benefits

Termination benefits are employee benefits provided in exchange for the termination of employment as a result from either the Corporation’s decision to terminate an employee’s employment before the normal retirement date, or an employee’s decision to accept an offer of redundancy benefits in exchange for the termination of employment. The Corporation recognizes expense when it can no longer withdraw an offer of termination benefits or it recognizes related restructuring costs, whichever is earlier. Benefits that are expected to be due more than 12 months after balance sheet date shall be discounted to their present value.

(18) Treasury Shares

The subsidiaries held the Corporation’s shares, and recognized the acquired cost as treasury shares. The write-off the share of loss of associates and joint ventures accounted for using equity method and adjust capital surplus – treasury share transactions as the dividends paid by the Corporation.

(19) Revenue Recognition

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

Any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year, the Corporation does not adjust any of the transaction prices for the financing components.

• (A)Sale of goods

Revenue from the sale of goods is mainly comes from sales of electricity power products. The Corporation recognized revenue when a customer obtains control of promised goods, at which time the goods are delivered to the customer’s specific location and performance obligation is satisfied. Advance receipts for goods before delivery are recognized as contract liabilities.

When the Corporation provides material for processing, the control of the ownership of the processed products is not transferred, so the revenue is not recognized when the materials were supplied.

Sales of real estate within the scope of normal business receive fixed transaction prices in phases and recognize contract liabilities. After considering the major financial components, income is recognized when each real estate is completed and delivered to the buyer.

• (B) Offer of services and maintenances

The Corporation offers services and maintenances such as parking management and electricity power system maintenance and overhaul.

As the customer obtains and consumes the compliance benefits at the same time, revenue from offer of services and maintenances is recognized when services are provided.

• (C) Construction revenue

During the construction process, the Corporation recognized construction revenue based on the stage of completion of the construction contract. The Corporation gradually recognized contract assets during the construction process and converted them into accounts receivable upon billing. The excess of the construction money received over revenue recognized the difference is presented as contract liability.

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The engineering retention retained by the customer under the terms of the contract is intended to ensure that the Corporation completes all contractual obligations. The engineering retention is recognized as contract assets before the compliance of the Corporation is completed.

If the outcome of a performance obligation can not be estimated reliably, construction revenue is only recognized within the expected recoverable cost of satisfying the performance obligation.

(20)Borrowing Cost

Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down.

Specifies that the amount of borrowing costs eligible for capitalization on a qualifying asset is the actual borrowing costs incurred less any investment income earned on the temporary investment of such borrowings.

Borrowings are recognized in current expenses except above conditions.

(21)Income Tax

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

The tax currently payable is based on taxable profit for the year. Tax is recognized in profit or loss, except to the extent that it relates to items recognized in other comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity. The Corporation’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

According to the Income Tax Law, an additional tax of unappropriated earnings is provided for as income tax in the year the shareholders approve to retain the earnings. Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision

B. Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets, such as temporary differences, loss carry forward or expenditure of R&D, are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

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

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

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recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. C. Current and deferred tax

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

5. CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The Corporation considers the economic implications of the COVID-19 when making its critical accounting estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods. The key judgments, estimations and assumptions are discussed below when the Corporation prepare the financial statements.

• (1) Critical Judgments adopted by the accounting policies

• A. Judgment made on the business model of classification of financial assets

Based on the reflected common administrative level for achieving specific business goals by the groups of financial assets, the Corporation assesses the business models where the financial assets belong. This assessment requires consideration for all relevant evidence, including ways to measure performances of the assets, risks that would affect performances, and the method to determine compensation to the related managers, and utilization of judgments is also required. The Corporation continuously evaluates if its judgments for the business model is appropriate or not and monitors and understand if the disposals of the financial assets measured at amortized cost or the debt instrument investments measured at fair value through other comprehensive income are consistent with goals of the business model. If it is discovered that the business model has been altered, the Corporation would postpone the adjustment to the classification of the financial assets acquired subsequently under IFRS 9.

• B. Revenue recognition

The Corporation identifies the specified goods or services to be provided to the customer whether the Corporation controls identified goods or services before that good or service is transferred to the customer to determine it is a principal or an agent under IFRS 15. If it is identified to be the principal of the transaction, the net amount of the transaction is recognized as revenues.

If there is one of following conditions, the Corporation is the principal:

(A)The Corporation acquired the goods or assets control from other party before goods or assets are transferred to the customer; or

(B)The Corporation has the other service provider of control power to transfer to the customer; or

(C)The Corporation control goods or services provided by the other party and combine other goods or services to transfer to the customer.

The indicators used to assist in determining whether the Corporation controls a specified goods or services before transferring it to a customer include (but are not limited to):

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• a. The Corporation has primary responsibility for the good or service meeting customer specifications.

• b. The Corporation has inventory risk in or after transferring to the customer.

• c. The Corporation has discretion in establishing the price for the specified good or service.

• C. Judgments on Lease Terms

In determining a lease term, the Corporation considers all facts and circumstances that create an economic incentive to exercise or not to exercise an option, including any expected changes in facts and circumstances from the commencement date until the exercise date of the option. Main factors considered include contractual terms and conditions covered by the optional periods, and the importance of the underlying asset to the lessee’s operations, etc. The lease term is reassessed if a significant change in circumstances that are within the control of the Corporation occurs.

• (2) Critical accounting estimates and assumptions

• A. Estimated impairment of financial assets

The provision for impairment of trade receivables is based on assumptions about risk of default and expected loss rates. The Corporation uses judgments in making these assumptions and in selecting the inputs to the impairment calculation, based on the Corporation’s past history, existing market conditions as well as forward looking estimates at the end of each reporting period.

• B. Impairment of tangible and intangible assets

When assessing the impairment of tangible and intangible assets, the Corporation will use their subjective judgment and take into account the status of the assets to determine the useful life and any profit and loss which will be generated by specific asset group. Any changes in accounting estimates arising from changes in economic situation and the Corporation’s strategy may cause significant impairment in the future.

• C. Realization of deferred income tax assets

Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences can be utilized. Assessment of the realisability of deferred income tax assets involves critical accounting judgments and estimates of the management, including the assumptions of expected future sales revenue growth rate and profit rate, tax exempt duration, available tax credits, etc. Any variations in global economic environment, industrial environment, and laws and regulations might cause material adjustments to deferred income tax assets.

D. Construction contracts

Construction contracts are according with service concession arrangement. The contract revenue and cost should be recognized by reference to the stage of completion of the contract activity. The stage of completion of a contract is measured by the proportion of contract costs incurred for work performed to date to the estimated total costs for the contract. Under IFRS 15, contract revenue should include the revenue arising from variations from the original contract work, claims and incentive payments that are agreed by the customer and can be measured reliably.

As the estimated total cost and contract items are assessed and judged by the management for the nature of the different projects, the expected amount of contract, the duration, the works and the work, etc., it may affect the calculation of the percentage of completion and the profit and loss of the project.

E. Fair value measurement and evaluation process

For Level 3 fair value measurement on equity investments, the Corporation determines the estimated fair value by selecting appropriate valuation methods primarily based on investees’ financial positions, operation results and recent financing activities, the

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market transaction prices of the similar investments, market conditions and the required discount factors. As such, the estimated fair value may be different from the actual disposal price in the future. The Corporation reassesses the fair value measurement quarterly based on the market conditions to ensure the appropriateness of the fair value measurement.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash on hand Turnover cash Bank Deposit	December 31,2020 $ 1,338 6,118 597,894 $ 605,350	December 31,2019 $ 1,571 6,028 150,044 $ 157,643

• (A) The financial institutions of the Corporation have good credit. The Corporation has business with numbers of financial institutions to diversify credit risk. The probability of breach of contract is expected to be low.

• (B) As of December 31, 2020 and 2019, the Corporation’s bank deposit were used as collaterals for purchasing raw materials, engineering contracts, trust of advance in real estate and loans and listed as restricted assets. Please refer to Note 8.

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

Financial assets-current Mandatorily at fair value through profit or loss Listed Stock Beneficiary certificate Financial assets-noncurrent Mandatorily at fair value through profit or loss Listed Stock Financial liabilities-current Held for trading - Convertible bonds call options and put options	December 31,2020 $ 7,673 4,569 $ 12,242 December 31,2020 $ 60,727 $ 10,200	December 31,2019 $ 8,625 4,343 $ 12,968 December 31,2019 $ 151,006 $ －

As of December 31, 2020 and 2019, financial assets at fair value through profit or loss did not server as collaterals for bank loan.

(3) Hedging Financial Instruments

The Corporation entered into forward foreign exchange contracts to avoid some of the foreign currency exchange rate risks that are highly probable arising from forecast transactions. Accounting to the market conditions, the Corporation adjusts hedging ratio not exceeding 100%.

The hedging information of exchange rate risk was as follows:

Increase (Decrease) in Value Used for Calculating Hedge Ineffectiveness

Hedging Instruments／Hedged Items Hedging Instruments Forward foreign exchange contracts Hedging Instruments Forecast transactions	2020 $ － $ －	2019 $ 114 $( 114)

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(4) Notes receivable, net

Notes receivable From Operating activities Less: allowance for impairment loss Notes receivable - related parties	December 31,2020 $ 79,717 － 79,717 1 $ 79,718	December 31,2019 $ 59,556 － 59,556 － $ 59,556

• A. As of December 31, 2020 and 2019, the Corporation has no notes receivable overdue.

• B. As of December 31, 2020 and 2019, notes receivable did not server as collaterals for bank loan.

(5) Accounts receivable, net

Current: Accounts receivable Less: allowance for impairment loss Lease payments receivables Less: unearned finance income Accounts receivable, net Accounts receivable – related parties Less: allowance for impairment loss Accounts receivable – related parties, net Current subtotal Non-current: Lease payments receivables Less: unearned finance income Non-current subtotal Finance leases of lease payments Undiscounted lease payments Year 1 Year 2 Year 3 Year 4 Year 5 Over 5 years Less: unearned finance income Lease investment, net Current Non-current

December 31,2020 December 31,2019 $ 1,936,623 $ 1,138,372 ( 4,478 ) ( 5,477) 1,932,145 1,132,895 5,529 5,510 ( 2,956 ) ( 3,045) 2,573 2,465 1,934,718 1,135,360 2,764,393 43,804 － － 2,764,393 43,804 4,699,111 1,179,164 87,022 92,207 ( 25,504 ) ( 28,142 ) 61,518 64,065 $ 4,760,629 $ 1,243,229 receivables were as follows: December 31,2020 December 31,2019 $ 5,529 $ 5,510 5,529 5,510 5,529 5,510 5,529 5,510 5,529 5,510 64,906 70,167 92,551 97,717 ( 28,460) ( 31,187) $ 64,091 $ 66,530 $ 2,573 $ 2,465 61,518 64,065 $ 64,091 $ 66,530

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• A.The Corporation signed the power supply contract of the solar power generation equipment is finance leased, and the average financing period is 20 years.

• B.The Corporation applies the approach to providing for expected credit losses, which permits the use of lifetime expected loss provision for Finance leases of lease payments receivables. As of the balance sheet date, there is no finance lease receivable overdue. In the meanwhile, the Corporation considers the past default record of the counterparty and the future development of the relevant industry of the lease object. The Corporation believes that the above mention of finance lease receivables has not impairment.

The Corporation applies the simplified approach to providing for expected credit losses, which permits the use of lifetime expected loss provision for all trade receivables. The expected credit losses on trade receivables are estimated using the past experience of the debtor. Due to the historical experience of the Corporation’s credit losses, there was no significant difference in the credit losses of various customer groups. Therefore, the expected credit loss rate is based on the overdue days of accounts receivable.

The following table details the loss allowance of trade receivables.

December 31, 2020 Expected credit loss rate Total Book Value Less: Loss allowance Amortized cost December 31, 2019 Expected credit loss rate Total Book Value Less: Loss allowance Amortized cost	Not overdue $ 4,752,429 － $ 4,752,429 Not overdue $ 1,231,250 － $ 1,231,250	Overdue 1~180 days 0%～50% $ 7,058 ( 8 $ 7,050 Overdue 1~180 days 0%～50% $ 10,306 ( 1,330 $ 8,976	Overdue over 181 days 50%～100% $ 5,620 ) ( 4,470 $ 1,150 Overdue over 181 days 50%～100% $ 7,150 ) ( 4,147 $ 3,003	Total $ 4,765,107 ) ( 4,478 ) $ 4,760,629 Total $ 1,248,706 ) ( 5,477 ) $ 1,243,229

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

Amortized cost $ 1 he movements of the loss	,231,250 $ 8,976 $ 3,003 $ 1,24 allowance of other receivables were as follows:	,231,250 $ 8,976 $ 3,003 $ 1,24 allowance of other receivables were as follows:	,231,250 $ 8,976 $ 3,003 $ 1,24 allowance of other receivables were as follows:
Balance, beginning of period Increase on impairment loss for the period Reversal on impairment loss for the period Write off on impairment loss for the period Balance, end of period	For the Years ended on December 31, 2020
	Accounts receivable $ 5,477 592 ( 1,509) ( 82) $ 4,478	Other receivable $ 22,346 － ( 3,885) － $ 18,461	Contract asset
			$ － 2,939 － －
			$ 2,939

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			For the Years ended on	For the Years ended on	December	December	31, 2019	31, 2019	31, 2019
		Accounts
		receivable		Other receivable			Contract asset
Balance, beginning of
period	$		3,897	$	18,461		$		8,639
Increase on impairment
loss for the period			3,199		3,885				－
Reversal on impairment
loss for the period			－			－	(		8,639)
Write off on impairment
loss for the period	(		1,619)			－			－
Balance, end of period	$		5,477	$	22,346		$		－
Related credit risk management and			assessment methods please refer to Note 12(2).
As of December 31, 2020 and		2019, accounts		receivable	did	not server as			collateral
for bank loan.
(6) Inventories-manufactory, net
			December 31, 2020			December 31,			2019
Raw materials		$		958,200	$			1,063,260
Semi-finished goods				318,056				217,758
Work in process				1,200,083				1,002,334
Finished goods				999,196				403,847
Finished goods - purchased				29,495					65,035
Materials in transit				28,725					25,278
		$		3,533,755	$			2,777,512
Inventory as collateral			None					None
The profits and losses derived	from cost of good			sold for the period were as follows:
			For the Years ended			December 31,
			2020				2019
Cost of inventory sold		$		5,306,617	$			1,807,158
Loss for obsolete and slow-moving				178,036					14,575
Loss on disposal of inventory				35,353					3,818
Loss on physical inventory			(	6)					2,147
		$		5,520,000	$			1,827,698
(7) Inventories–Construction
			December 31,2020			December 31,			2019
Building as Held for sale
No94, 95, Chung Shan section			$	415		$			415
No 138, Dunhua S. section				2,721,645					－
				2,722,060					415
Land held for construction site
Chengzhong section				242,956					242,956
Building in construction
Fuxing section				－				2,128,830
Chenggong section				118,114					116,940
				118,114				2,245,770
Prepayments for Land
Fuxing section				－					81,524
			$	3,083,130		$		2,570,665

Related credit risk management and assessment methods please refer to Note 12(2). As of December 31, 2020 and 2019, accounts receivable did not server as collaterals for bank loan.

A. The Corporation had singed contracts with owners of land in Fuxing section city project and Chenggong section (Sanchongpu section), Sanchong Dist., New Taipei City city project to construct residential buildings.

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• B. On May 11, 2020, the Corporation signed a co-construction contract with “CHAINQUI Construction Development Co., Ltd.” to construct commercial and residential buildings in the form of co-construction distribution. In order to participate in the development, the Corporation pledged the Land of Chengzhong section to Jushengsheng Construction Co., Ltd. The Corporation also signed a trust contract with Pauguo Real Estate Management Corporation (Pauguo), registered the trust of land ownership to Pauguo, and entrusted him with the related affairs of trust property. As December 31, 2020, because the project had been changed, the Corporation write off the collaterals of land and taken back the property of land.

• C. For the years ended December 31, 2020 and 2019, the interest expense capitalized amount was $12,134 thousand and $13,655 thousand, respectively; and the capitalized interests’ ratio range was 0.72%~0.96% and 0.84%~0.96%, respectively.

• D. As of December 31, 2020 and 2019, Inventories Construction servers as collaterals for bank loan, please refer to Note 8.

(8) Prepayments

Prepayments
Prepaid rental Other prepaid expense Prepayments for purchasing materials Offset Against Business Tax Payable Prepayments for investments Prepayments for construction	December 31, 2020 $ 7,623 51,338 161,614 14,832 9,860 549,967 $ 795,234	December 31, 2019
		$ 5,672 17,097 168,626 － － 276,395
		$ 467,790

(9) Investments accounted for under the equity method

Investments accounted for using equity method were as follows:

Subsidiaries Associates	December 31, 2020 $ 4,532,402 1,230,086 $ 5,762,488	December 31, 2019
		$ 3,243,031 675,701
		$ 3,918,732

Certain investments accounted for under the equity method were audited by other independent accountants.

• A. Investment in subsidiaries:

independent accountants. A. Investment in subsidiaries:
CHEM USA CORP. Chem Corp. Samoa Sunrise investment Corp. CHENG-HSIN Engineering & Services CO.,LTD Bao Cheng International Co., Ltd. Etrovision technology Co., Ltd. Tone-zoom industry Co., Ltd. Global-Entech Co., Ltd. FinData Technology Corp. (Note) ME ENERGY SYSTEMS Limited (N t 3) Chung- Hsin Energy Tech. Inc. (N t 3) Tian Cin Energy Co., Ltd. Tian Peng Energy Co., Ltd.	December 31, 2020 Amount % $ 55,856 100.00% 2,065,010 100.00% 290,016 100.00% 544,957 100.00% 159,250 100.00% 20,061 99.99% 52,504 58.04% 25,937 99.98% － 100.00% 133,582 100.00% 4,821 100.00% 146,268 86.46% 346,271 85.32%	December 31,	2019
	Amount $ 55,856 2,065,010 290,016 544,957 159,250 20,061 52,504 25,937 － 133,582 4,821 146,268 346,271	Amount $ 58,418 2,141,583 272,077 412,655 96,139 －(Note) 53,478 26,431 － 177,274 4,976 －(Note) －(Note)	%
			100.00% 100.00% 100.00% 100.00% 100.00% 99.99% 58.04% 99.98% 100.00% 100.00% 100.00% 50.00% 50.00%

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Tian Chong Energy Co., Ltd. Tian Fu Energy Co., Ltd. Less: accumulative impairment	December 31, 2020 Amount % 532,979 85.99% 154,890 52.42% 4,532,402 － $ 4,532,402	December 31,	2019
	Amount 532,979 154,890 4,532,402 － $ 4,532,402	Amount －(Note) － 3,243,031 － $ 3,243,031	%
			50.00% －

Note: To reclassify in Other non-current liabilities.

• (A) The Corporation increases invest in ME Energy Systems Limited through by resolution of the board of directors in 2019. The invest amounts were USD990 thousand and USD 6,910 thousand in 2019 and 2020 for 100% shares.

• (B) Etrovision technology Co., Ltd. had been cash increase capital in September 2020. The Corporation fully subscribed for the capital increase. As December 31, 2020, the Corporation invest amount was $115,056 thousand.

• (C) The Corporation increase invests in the Tian Cin Energy Co., Ltd., Tian Peng Energy Co., Ltd. and Tian Chong Energy Co., Ltd. through by resolution of the board of directors in March, 2020. The invest amount of each company was $209,467 thousand, $674,245 thousand and $928,288 thousand for 86.46% shares, 85.32% shares and 85.99% shares, respectively.

• (D) The Corporation invests in Tian Fu Energy Co., Ltd. through by resolution of the board of directors in 2020. The invest amount was $156,000 thousand with 56.42% shares.

• (E)The Corporation set up the Chung- Hsin Energy Tech. Inc. through by resolution of the board of directors in March, 2019. The invest amount was $5,000 thousand until December 31, 2019.

• (F)Aggregate information of subsidiaries

Proportionate interest from associates Year of Income Other comprehensive loss from associates B. Investment in associates: Associates are not individually material Fumei Development Co., Ltd. (Note 2) Sheng-yuan investment Corp. Guang-Hsin engineering & services Co., Ltd. Li-Xiang Technology Co., Ltd. (Note 1) Nomura Chung-Hsin Machinery Corporation (Note 1) Less: accumulative impairment	For the year periods ended on December 31, 2020 2019 $ 218,059 $ 162,314 ( 48,581 ) ( 76,711) $ 169,478 $ 85,603 December 31, 2020 December 31, 2019 Amount % Amount % $ － － $ 203,163 45.00% 616,752 29.33% 281,942 29.33% 613,334 24.29% 247,849 24.29% － 40.00% － 40.00% － 49.00% － 49.00% 1,230,086 732,954 － ( 57,253 ) $ 1,230,086 $ 675,701	For the year periods ended on December 31, 2020 2019 $ 218,059 $ 162,314 ( 48,581 ) ( 76,711) $ 169,478 $ 85,603 December 31, 2020 December 31, 2019 Amount % Amount % $ － － $ 203,163 45.00% 616,752 29.33% 281,942 29.33% 613,334 24.29% 247,849 24.29% － 40.00% － 40.00% － 49.00% － 49.00% 1,230,086 732,954 － ( 57,253 ) $ 1,230,086 $ 675,701	For the year periods ended on December 31, 2020 2019 $ 218,059 $ 162,314 ( 48,581 ) ( 76,711) $ 169,478 $ 85,603 December 31, 2020 December 31, 2019 Amount % Amount % $ － － $ 203,163 45.00% 616,752 29.33% 281,942 29.33% 613,334 24.29% 247,849 24.29% － 40.00% － 40.00% － 49.00% － 49.00% 1,230,086 732,954 － ( 57,253 ) $ 1,230,086 $ 675,701	For the year periods ended on December 31, 2020 2019 $ 218,059 $ 162,314 ( 48,581 ) ( 76,711) $ 169,478 $ 85,603 December 31, 2020 December 31, 2019 Amount % Amount % $ － － $ 203,163 45.00% 616,752 29.33% 281,942 29.33% 613,334 24.29% 247,849 24.29% － 40.00% － 40.00% － 49.00% － 49.00% 1,230,086 732,954 － ( 57,253 ) $ 1,230,086 $ 675,701	For the year periods ended on December 31, 2020 2019 $ 218,059 $ 162,314 ( 48,581 ) ( 76,711) $ 169,478 $ 85,603 December 31, 2020 December 31, 2019 Amount % Amount % $ － － $ 203,163 45.00% 616,752 29.33% 281,942 29.33% 613,334 24.29% 247,849 24.29% － 40.00% － 40.00% － 49.00% － 49.00% 1,230,086 732,954 － ( 57,253 ) $ 1,230,086 $ 675,701
	2020 $ 218,059 ( 48,581 ) $ 169,478 December 31, 2020
			$ (
			$
	Amount $ － 616,752 613,334 － － 1,230,086 － $ 1,230,086	%		Amount % $ 203,163 45.00% 281,942 29.33% 247,849 24.29% － 40.00% － 49.00% 732,954 ( 57,253 ) $ 675,701	%

Note 1: To reclassify in other non-current liabilities. Note 2: Disposal in this period.

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(A) Aggregate information of associates that are not individually material:

Proportionate interest from associates Year of Income Other comprehensive loss from associates	For the year periods ended on December 31, 2020 2019 $ 154,233 $ 64,194 565,863 96,277 $ 720,096 $ 160,471
	2020 $ 154,233 565,863 $ 720,096

(B) For the years ended December 31, 2020 and 2019, the Corporation conducted evaluation and impairment test for investment in associates. The result recognized losses on impairment of investment were $0 and $57,253 thousand, respectively. The discount ratio used to impairment test both was 0.90%.

(10)Property, plant and equipment

) Property,plantand equipment
Assets used by the Corporation Assets subject to operating leases	December 31, 2020 $ 3,217,193 － $ 3,217,193	December 31, 2019
		$ 3,154,917 7,882
		$ 3,162,799

Assets used by the Corporation

Cost Beginning Balance of period Additions Disposals Transfers to operating leases assets End Balance of period Accumulated depreciation					For the Years ended December 31, 2020	For the Years ended December 31, 2020	For the Years ended December 31, 2020
	Land				Machinery Transportation Others $ 1,919,603 $ 74,191 $ 465,874 147,437 9,467 84,563 ( 19,952) ( 6,858) ( 22,827) － － － $ 2,047,088 $ 76,800 $ 527,610 $ ( 1,366,821) $ ( 55,257) $ ( 339,485) ( 101,782) ( 6,189) ( 52,730) 17,071 4,743 22,586 － － － $ (1,451,532) $ ( 56,703) $ ( 369,629) $ 595,556 $ 20,097 $ 157,981 FortheYears endedDecember31,2019			Unfinished construction and Equipment to be tested $ － 36,291 － － $ 36,291 $ － － － － $ － $ 36,291
	$ 1,496,494
	$ － － － －
	$ －
	$ 1,496,494
		Land		Buildings		Machinery
		$ 1,496,874 － － (4,131)		$ 2,579,352 6,985 ( 148,434 (18,166
		$ 1,492,743		$ 2,419,737		$ 1,919,603
						) $ ( 1,305,996 ) ( 79,206 18,381 －
						) $ (1,366,821
		$ 1,492,743		$ 964,069		$ 552,782

～27～

Assets subject to operating leases

Cost Beginning Balance of period From assets used by the Corporation Ending Balance of period Accumulated depreciation and impairment loss Beginning Balance of period Depreciation From assets used by the Corporation Ending Balance of period Net Balance Cost Beginning Balance of period From assets used by the Corporation Ending Balance of period Accumulated depreciation and impairment loss Beginning Balance of period From assets used by the Corporation Depreciation Ending Balance of period Net Balance

For the Years ended December

Land $ － 4,131 $ 4,131 $ － － － $ － $ 4,131

The Corporation lease land and buildings by operating lease. The lease period is 10 years. The operating lease has ended in October 2020 due to capacity considerations.

(A)Depreciation is calculated on a straight-line basis over estimated useful lives as follows:

:
Buildings
Main buildings	35 to 50 years
Electrical and Mechanical Construction, etc.	15 to 30 years
Other	5 to 10 years
Machinery	2 to 10 years
Transportation	3 to 6 years
Others	3 to 15 years

(B)As of December 31, 2020 and 2019, property, plant and equipment for guarantee and mortgage, please refer to Note 8.

(C)For the years ended December 31, 2020 and 2019, the interest expense capitalized amounts both were $0.

(D)For the years ended December 31, 2020 and 2019, the impairment loss amounts both were $0.

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(11)Lease arrangements

A. Right-of-use assets

Lease arrangements A. Right-of-use assets	s	s
Land Cost Balance, beginning of period $ 1,882,039 Additions 1,010,449 Disposals ( 629,034) Balance, end of period $ 2,263,454 Accumulated depreciation Beginning Balance of period $ ( 949,551) Depreciation ( 813,602) Disposals 600,870 Ending Balance of period $ (1,162,283) Net Balance $ 1,101,171 Land Cost Balance, beginning of period $ － Adjustment on initial application of IFRS 16 1,929,934 Additions 193,227 Disposals (241,122) Balance, end of period $ 1,882,039 Accumulated depreciation Beginning Balance of period $ － Depreciation ( 1,010,699) Disposals 61,148 Ending Balance of period $ ( 949,551) Net Balance $ 932,488 . Lease liabilities Carrying amount of lease liabilities Current $ Noncurrent $			For the Years ended	December 31, 2020
	Land $ 1,882,039 1,010,449 ( 629,034) $ 2,263,454 $ ( 949,551) ( 813,602) 600,870 $ (1,162,283) $ 1,101,171		Buildings $ 37,083 10,889 ( 33,545) $ 14,427 $ ( 8,902) $ ( 5,199) 9,019 $ (5,082) $ 9,345 FortheYears ended	Transportation $ 16,321 6,941 (2,124) $ 21,138 $ ( 6,662) $ ( 7,193) 2,124 $ (11,731) $ 9,407 December31,2019
		$
		$

B. Lease liabilities

Ranges of discount rates for lease liabilities are 0.96%.

• C. Material lease-in activities and terms

• The Corporation leases certain lands or buildings for the use of plants and offices with original lease terms of 1 to 5 years. The Corporation does not have bargain purchase options to acquire the buildings at the end of the lease terms. In addition, the Corporation is prohibited from subleasing or transferring all or any portion of the underlying assets without the lessor’s consent. As of December 31, 2020 and 2019, the right-of-use assets did not have impairment sight, therefore the Corporation did not conducted impairment test.

The Corporation has rent concessions from lessor due to serious economic implications of COVID-19 in 2020. The lessor agree decrease rent without any conditions. The Corporation has recognized aforementioned rent concessions $14,935 thousand under deduction of depreciation of right-of-use assets.

D. Other lease information

The Corporation has elected to apply the recognition exemption which qualifies as short-term leases or low-value asset leases did not recognize right-of-use assets and lease liabilities for these leases. The related expenses information was as follows:

Expenses relating to short-term leases or low-value asset leases Total cash outflow for leases	For the Years ended December 31,	For the Years ended December 31,
	2020 $ 50,336 $ 813,430	2019
		$ 90,391
		$ 1,056,447

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(12)Investment property

) Investment property
Cost Beginning Balance of period Ending Balance of period Accumulated depreciation and impairment loss Beginning Balance of period Depreciation Ending Balance of period Net Balance Cost Beginning Balance of period Ending Balance of period Accumulated depreciation and impairment loss Beginning Balance of period Depreciation Ending Balance of period Net Balance	For the Years ended December
	Land $ 391,808 $ 391,808 $ － － $ － $ 391,808

(A)Depreciation is calculated on a straight-line basis over estimated useful lives as 8 to 50 years.

(B)Rental revenue and direct operating costs / expenses are shown below:

Rental revenue Direct operating costs / expenses	For the Years ended December 31, 2020 2019 $ 24,157 $ 23,439 ( 12,631) ( 11,339) $ 11,526 $ 12,100
	2020 $ 24,157 ( 12,631) $ 11,526

• (C)The lease terms for the investment property expire between 1 year and 5 years. The lessee had not bargain purchase options as expired lease agreements. As of December 31, 2020 and 2019, the guarantee deposits received for operating leases were $4,172 thousand and $3,290 thousand, respectively.

• (D)The future minimum lease payments of non-cancellable operating lease commitments were as follows:

ommitments were as follows:
Not later than one year Later than one year but not later than five years Over five years	December 31, 2020 $ 20,786 18,669 2,581 $ 42,036	December 31, 2019
		$ 12,938 11,651 3,277
		$ 27,866

(E)The fair value of the investment property held by the Corporation as at December 31, 2020 and 2017 was $993,708 thousand and $942,738 thousand which was revalued by independent valuers. Valuations at December 31, 2019 were made using the evidences of trading price in real estate market. There were not significant changes in basic assumptions with December 31, 2017.

• (F) As of December 31, 2020 and 2019, Investment property was used as collaterals for bank loan. Please refer to Note 8.

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(13)Other noncurrent assets

Prepayment for equipment Deferred Expense Net defined benefit assets (14) Short-term debts Loan without security : Bank overdraft Credit borrowing Guaranteed loan : Bank borrowings Range of interest rate Collateral	December 31, 2020 $ 2,348 87,189 － $ 89,537 December 31, 2020 $ 47,973 612,980 660,953 98,000 $ 758,953 0.5814%~1.20% Refer to Note 8	December 31, 2019 $ 27,877 76,136 26,569 $ 130,582 December 31, 2019 $ 5,084 648,500 653,584 － $ 653,584 0.6258%~1.20% Refer to Note 8

(15) (16)	Other payables December 31, 2020 December 31, 2019 Other payables $ 98 $ 16,432 Accrued expenses 678,973 506,040 $ 679,071 $ 522,472 Provisions December 31, 2020 December 31, 2019 Loss contracts $ － $ 169,745 Movements of provisions were as follows: FortheYears endedDecember31, 2020 2019 Balance, beginning of period $ 169,745 $ 53,649 Addition (Reduction) ( 169,745) 116,096 Balance, end of period $ － $ 169,745	Other payables December 31, 2020 December 31, 2019 Other payables $ 98 $ 16,432 Accrued expenses 678,973 506,040 $ 679,071 $ 522,472 Provisions December 31, 2020 December 31, 2019 Loss contracts $ － $ 169,745 Movements of provisions were as follows: FortheYears endedDecember31, 2020 2019 Balance, beginning of period $ 169,745 $ 53,649 Addition (Reduction) ( 169,745) 116,096 Balance, end of period $ － $ 169,745	Other payables December 31, 2020 December 31, 2019 Other payables $ 98 $ 16,432 Accrued expenses 678,973 506,040 $ 679,071 $ 522,472 Provisions December 31, 2020 December 31, 2019 Loss contracts $ － $ 169,745 Movements of provisions were as follows: FortheYears endedDecember31, 2020 2019 Balance, beginning of period $ 169,745 $ 53,649 Addition (Reduction) ( 169,745) 116,096 Balance, end of period $ － $ 169,745
		2020 $ 169,745 ( 169,745) $ －	2019 $ 53,649 116,096 $ 169,745

When the Corporation is expected that the cost of fulfilling the contractual obligation exceeds the expected economic benefit of the contract, the present obligation to recognize the loss contract is provisions.

(17)Bonds payable

The second domestic unsecured convertible bonds Less：Discount on bonds payable	December 31, 2020 $ 1,500,000 ( 77,445) $ 1,422,555	December 31, 2019
		$ － －
		$ －

Relevant information on first domestic unsecured convertible bonds issued by the Corporation is as follows:

(A)The Corporation raised and issued the first domestic unsecured convertible bond, which was approved by the competent authority. The total issue amount is 1,500,000 thousands. The coupon rate is 0%. The issuance period is 5 years. The period is from January 16, 2020 to January 16, 2025. Convertible bonds are settled in cash at once as the maturity of the bond.

• (B) The bondholders of convertible bonds may request the Corporation to convert the convertible bonds into the Corporation’s common stock during at any time from the next day after the three months (April 17, 2020) of issuance of the convertible bonds to the maturity date, except for the period of cessation of transfer according

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to the regulations or laws. The rights and obligations of the converted common stocks are the same as those of the common stocks.

• (C) The Corporation will change the conversion price due to the anti-dilution clause, and the conversion price will be adjusted according to the pricing model specified in the conversion method. From September 18, 2020, the conversion price of bonds was adjusted from $27.7 to $26.7 per share.

• (D)From the next day of the month of the Corporation’s issuance (April 17, 2020) to the forty days before the end of the issuance period (December 7, 2024), if the conversion price reaches 30% (inclusive) at that time or the outstanding balance of the convertible bonds is less than 10% of the original total issuance, the Corporation may recover all of its bonds in cash at the per value of the bonds.

• (E) According to the regulations of the conversion method, all convertible bonds recovered (including bought back from the securities companies’ business offices), repaid or converted will be cancelled, no longer sold or issued, and the conversion rights attached will be eliminated together.

• (F)Convertible bondholders may ask the Corporation to buy back at the face value plus interest compensation on the date of issuance of three years of maturity (January 16, 2023) and four years of maturity (January 16, 2024). The interest compensation is 100.75% of face value of convertible bond upon 3 years from issue date and 101.00% of face value of convertible bond upon 4 years from the issue date.

(F) Convertible bondholders may ask the Corporation to buy back at the face value plus interest compensation on the date of issuance of three years of maturity (January 16, 2023) and four years of maturity (January 16, 2024). The interest compensation is 100.75% of face value of convertible bond upon 3 years from issue date and 101.00% of face value of convertible bond upon 4 years from the issue date.	(F) Convertible bondholders may ask the Corporation to buy back at the face value plus interest compensation on the date of issuance of three years of maturity (January 16, 2023) and four years of maturity (January 16, 2024). The interest compensation is 100.75% of face value of convertible bond upon 3 years from issue date and 101.00% of face value of convertible bond upon 4 years from the issue date.	(F) Convertible bondholders may ask the Corporation to buy back at the face value plus interest compensation on the date of issuance of three years of maturity (January 16, 2023) and four years of maturity (January 16, 2024). The interest compensation is 100.75% of face value of convertible bond upon 3 years from issue date and 101.00% of face value of convertible bond upon 4 years from the issue date.
(G) The Convertible bond is including liability and equity component. The effective
interest rate of the liability component is initially recognized 1.248%. The equity
component is recognized under capital surplus – share option.
Proceeds from issuing bonds (minus transaction
costs 5,116 thousand)	$	1,500,134
Equity component	(	80,424 )
Financial liability at fair value through profit and
loss - current	(	9,900 )
Liability component on issue date		1,409,810
Interest calculated at the effective interest rate of
1.248%		90,190
Convertible bond converted into common stock	(	1,500,000 )
Liability component on December 31, 2020	$	－

• (H)As of December 31, 2020, the convertible bondholders have converted all the convertible bonds into 56,134 thousand shares.

Relevant information on second domestic unsecured convertible bonds issued by the Corporation is as follows:

• (A)The Corporation raised and issued the second domestic unsecured convertible bond, which was approved by the competent authority. The total issue amount is 1,500,000 thousands. The coupon rate is 0%. The issuance period is 5 years. The period is from December 17, 2020 to December 17, 2025. Convertible bonds are settled in cash at once as the maturity of the bond.

• (B) The bondholders of convertible bonds may request the Corporation to convert the convertible bonds into the Corporation’s common stock during at any time from the next day after the three months (March 18, 2021) of issuance of the convertible bonds to the maturity date, except for the period of cessation of transfer according to the regulations or laws. The rights and obligations of the converted common stocks are the same as those of the common stocks.

• (C) The Corporation will change the conversion price due to the anti-dilution clause, and the conversion price will be adjusted according to the pricing model specified in the conversion method. From December 31, 2020, the conversion price of bonds was $61.4 per share.

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• (D)From the next day of the month of the Corporation’s issuance (March 18, 2021) to the forty days before the end of the issuance period (November 7, 2025), if the conversion price reaches 30% (inclusive) at that time or the outstanding balance of the convertible bonds is less than 10% of the original total issuance, the Corporation may recover all of its bonds in cash at the per value of the bonds.

• (E) According to the regulations of the conversion method, all convertible bonds recovered (including bought back from the securities companies’ business offices), repaid or converted will be cancelled, no longer sold or issued, and the conversion rights attached will be eliminated together.

• (F)Convertible bondholders may ask the Corporation to buy back at the face value plus interest compensation on the date of issuance of three years of maturity (December 17, 2023) and four years of maturity (December 17, 2024). The interest compensation is 100.75% of face value of convertible bond upon 3 years from issue date and 101.00% of face value of convertible bond upon 4 years from the issue date.

• (G)The Convertible bond is including liability and equity component. The effective interest rate of the liability component is initially recognized 1.075%. The equity component is recognized under capital surplus – share option.

Proceeds from issuing bonds (minus transaction costs 5,114 thousand) Equity component Financial liability at fair value through profit and loss - current Liability component on issue date Interest calculated at the effective interest rate of 1.075% Liability component on December 31, 2020	$ 1,500,886 ( 68,615 ) ( 10,350 ) 1,421,921 634 $ 1,422,555

(18)Long-term debts

• (A) Long-term notes and bills payable

Mega Bills International Bills Dah Chung Bills China Bills Taiwan Bills Grand Bills Cooperative Bill Less: unamortized discount Range of interest rate Collateral Long-term debts Loan without security : Bank borrowings Less: Current portion of long-term liabilities Range of interest rate	December 31, 2020 $ 850,000 500,000 300,000 500,000 300,000 400,000 300,000 ( 1,230) $ 3,148,770 0.4%~0.902% Refer to Note 8 December 31, 2020 $ 2,704,000 ( 950,000) $ 1,754,000 0.518%~1.25%	December 31, 2019 $ 740,000 300,000 200,000 300,000 200,000 300,000 200,000 ( 508) $ 2,239,492 0.6%~0.902% Refer to Note 8 December 31, 2019 $ 1,815,000 ( 700,000) $ 1,115,000 1.05%~1.5073%

• (B) Long-term debts

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(19)Other noncurrent liabilities

Net defined benefit liability Guarantee deposit received Custody funds Credit balance of investment under equity method	December 31, 2020 $ 12,443 23,013 74,694 68,445 $ 178,595	December 31, 2019 $ － 18,730 41,216 118,676 $ 178,622

(20)Post-employment benefits plans

(A)Defined contribution plans

The employees who were subject to the Labor Standard Law prior to July 1, 2005 were allowed to choose to be subject to the pension mechanism under the Labor Pension Act with their seniority as of July 1, 2005 retained or continue to be subject to the pension mechanism under the Labor Standards Law. The Corporation and its domestic subsidiaries have a defined contribution pension plan in accordance with the Labor Pension Act (LPA), covering all regular employees with R.O.C. nationality. Under the LPA, the Corporation and its domestic subsidiaries makes monthly contributions to employees’ individual pension accounts at 6% of monthly salaries and wages at the Bureau of Labor Insurance. The total expense recognized in profit or loss in statements of comprehensive income of $45,981 thousand and $41,371 thousand for the years ended December 31, 2020 and 2019.

(B)Defined benefit plans

The Corporation has a defined benefit plan under the Labor Standards Law that is operated by the government. Under the defined benefit plan, provide benefits based on an employee’s length of service and average monthly salary for the six-month period prior to retirement. The Corporation contributes an amount equal to 2% 〜 15% of salaries paid each month to a pension fund. The fund is administered by the pension fund monitoring committee and deposited in the Bank of Taiwan. Before the end of each year, the Corporation assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Corporation is required to fund the difference in one appropriation that should be made before the end of March of the next year. The Funds are operated and managed by the government’s designated authorities; as such, the Corporation does not have any right to intervene in the investments of the Funds.

The pension expenses in respect of these defined benefit plans were as follows:

Current service cost Net Interest cost Recognized as profit or loss Remeasurements Return on plan assets, excluding amounts included in net interest Actuarial (Gain) Loss from changes in financial assumptions Actuarial (Gain) Loss from experience adjustments Recognized in Other comprehensive income or loss	For the Years ended December 31, 2020 2019 $ 5,166 $ 6,225 ( 203) ( 248) 4,963 5,977 ( 22,646 ) ( 22,073 ) 18,091 6,637 55,103 24,404 50,548 8,968 $ 55,511 $ 14,945
	2020 $ 5,166 ( 203) 4,963 ( 22,646 ) 18,091 55,103 50,548 $ 55,511

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The pension expenses for the period were as follows:

Operating cost Marketing expenses General and administrative expenses Research and development expenses	For the Years ended December 31,	For the Years ended December 31,
	2020 $ 2,548 1,202 573 640 $ 4,963	2019
		$ 3,088 1,387 754 748
		$ 5,977

The amounts included in the balance sheets for the Corporation’s obligations in respect of its defined benefit plans were as follows:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit (asset) liability	For the Years ended December 31, 2020 2019 $ 689,570 $ 640,080 ( 677,127) ( 666,649) $ 12,443 $( 26,569)
	2020 $ 689,570 ( 677,127) $ 12,443

Movements in the present value of the defined benefit obligations were as follows:

Movements in the present value	of the defined benefit obligations were as follows
Balance at beginning of period Current service cost Interest cost Benefits paid from plan assets Remeasurements Actuarial (Gain) Loss from financial assumptions Actuarial Loss from Experience adjustments Balance at end of year	For the Years ended December 31, 2020 2019 $ 640,080 $ 621,076 5,166 6,225 3,957 4,767 ( 32,827 ) ( 23,029 ) 18,091 6,637 55,103 24,404 $ 689,570 $ 640,080
	2020 $ 640,080 5,166 3,957 ( 32,827 ) 18,091 55,103 $ 689,570

Movements in the fair value of the plan assets were as follows:

Balance at beginning of period Interest income Benefits paid from plan assets Contribution by employer Remeasurements Return on plan assets, excluding amounts included in net interest Balance at end of year	For the Years ended December 31, 2020 2019 $ 666,649 $ 647,767 4,160 5,015 ( 32,827 ) ( 23,029 ) 16,499 14,823 22,646 22,073 $ 677,127 $ 666,649
	2020 $ 666,649 4,160 ( 32,827 ) 16,499 22,646 $ 677,127

(C)The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The principal assumptions of the measurement date were as follows:

date were as follows:
Discount rate Expected rate of salary increase	Measurement Date
	December 31, 2020 0.25% 0.30%	December 31, 2019
		0.65% 0.30%

The weighted average duration of the defined benefit obligation is 6.71 years.

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The impact on the present value of the defined benefit obligation as a result of reasonable changes in key assumptions occurring as follows:

Discount rate 0.25% increase 0.25% decrease	The impact on the present value of the defined benefit obligation December 31, 2020 December 31, 2019 $( 11,400) $( 10,999) $ 11,721 $ 11,318
	December 31, 2020 $( 11,400) $ 11,721

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

• (D)Through the defined benefit plans under the Labor Standards Law, the Corporation is exposed to the following risks:

• Investment risk: The pension funds are invested in equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the government’s designated authorities or under the mandated management. However, under the Labor Standards Law, the rate of return on assets shall not be less than the average interest rate on a two-year time deposit published by the local banks and the government is responsible for any shortfall in the event that the rate of return is less than the required rate of return.

Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the debt investments of the plan assets. Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.

• (E)The Corporation expects to make contributions of $14,120 thousand to the defined benefit pension plans after December 31, 2020.

(21)Equity

• (A) Common stock

ity Common stock
Authorized shares (in thousands) Authorized capital Outstanding shares(in thousands) Outstanding common stocks	December 31, 2020 750,000 $ 7,500,000 476,134 $ 4,761,343	December 31, 2019
		750,000
		$ 7,500,000
		420,000
		$ 4,200,000

The Corporation issued common shares at $10.00 par value and each share has the rights to dividends and to vote.

As of December 31, 2020, the convertible bondholders have executed conversion of first convertible bond into 56,134 thousands shares. The registration of all changes has been completed.

(B) Capital surplus

been completed. Capital surplus
Additional paid-in capital arising from bond conversion Treasury stock transactions Convertible bonds stock option Other	December 31, 2020 $ 939,167 426,405 68,614 21,289 $ 1,455,475	December 31, 2019
		$ － 415,590 － 5,434
		$ 421,024

The capital surplus arising from paid-in capital in excess of par value (including the excess of the issuance price over par value on issuance of common stocks, premium on convertible bonds and treasury stock transactions) and donations can be used to

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cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. The amount of capital surplus to be capitalized mentioned above should be fixed the ratio of capital in each year.

(C) Retained earning

In accordance with the Corporation’s articles of incorporation, when allocating the net profits for each fiscal year, the Corporation shall set aside the following items accordingly: A. To pay taxes; B. To cover accumulated losses, if any; C. To appropriate 10% legal reserve unless the total legal reserve accumulated has already reached the amount of the Corporation’s authorized capital; D. To recognize or reverse special reserve return earnings; E. The board of directors shall propose allocation ratios for any remainder profit after withholding the amounts under subparagraphs A to D above plus any unappropriated retained earnings of previous years based on the dividend policy set forth in the Article and propose such allocation ratio at the shareholders’ meeting.

As part of a high-technology industry and as a growing enterprise, the Corporation considers its operating environment, industry developments, and long-term interests of stockholders as well as its programs to maintain operating efficiency and meet its capital expenditure budget and financial goals in determining the stock or cash dividends to be paid. Cash dividends to be distributed 50% ~ 80% of the total amount of dividends to be distributed on each year.

The legal reserve may be used to offset a deficit, or be distributed as dividends in cash or stocks for the portion in excess of 25% of the paid-in capital if the Corporation incurs no loss.

Pursuant to existing regulations, the Corporation is required to set aside additional special capital reserve equivalent to the net debit balance of the other components of stockholders’ equity. For the subsequent decrease in the deduction amount to stockholders’ equity, any special reserve appropriated may be reversed to the extent that the net debit balance reverses.

Under Rule No. 1010012865 issued by the FSC on April 6, 2012, the Corporation adjusts all cumulative translation adjustments about $226,678 thousand and unrealized revaluations increment about $632,000 thousand to special reserve for the subsequent decrease in the deduction amount to stockholders’ equity, any special reserve appropriated may be reversed to the extent that the net debit balance reverses. The appropriations of 2019 were agreed by stockholders’ meeting on June 22, 2020. The appropriations of 2018 were agreed by stockholders’ meeting on June 27, 2019. The appropriations and dividends per share were as follows:

Legal reserve Cash dividends	Appropriation of 2019 2018 $ 60,438 $ 54,484 $ 504,000 $ 420,000	Dividends Per Share (NT$)	Dividends Per Share (NT$)
	2019 $ 60,438 $ 504,000	2019 $ 1.2	2018
			$ 1.0

The appropriations of 2020 were agreed by the board of directors’ meeting on March 30, 2021. The appropriations and dividends per share were as follows:

Legal reserve Cash dividends	Appropriation of 2020 $ 146,453 $ 1,047,495	Dividends Per Share (NT$) 2020 $ 2.2

The appropriations of 2020 are to be presented for approval in the shareholders’ meeting in June 28, 2021.

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Information on the Board of Directors’ recommendations and stockholders’ approval can be obtained from the Market Observation Post System website of the Taiwan Stock Exchange.

(D) Other equity items

ck Exchange. Other equity items
		For the Years ended December 31,		2020
		Exchange
		differences on	Unrealized gains
		translating of	(losses) on financial		Total
		foreign	assets at FVTOCI
		operations
Balance at beginning of
period	$ (	208,979 ) $	230,677	$	21,698
Proportionate interest
from associates and joint
ventures under equity
method		6,124	511,158		517,282
Balance at end of period	$ (	202,855 ) $	741,835	$	538,980

		For the Years ended December 31,	For the Years ended December 31,	2019
		Exchange
		differences on	Unrealized gains
		translating of	(losses) on financial		Total
		foreign	assets at FVTOCI
		operations
Balance at beginning of
period	$ (	132,290 )$	134,400	$	2,110
Proportionate interest
from associates and joint
ventures under equity
method	(	76,689 )	96,277		19,588
Balance at end of period	$ (	208,979 )$	230,677	$	21,698

(E) Treasury shares:

Proportionate interest from associates and joint ventures under equity method ( Balance at end of period $ ( Treasury shares:	76,689 ) 96,277 19,588 208,979 )$ 230,677 $ 21,698	76,689 ) 96,277 19,588 208,979 )$ 230,677 $ 21,698	76,689 ) 96,277 19,588 208,979 )$ 230,677 $ 21,698
Reason for reacquisition Subsidiaries’ Held Reason for reacquisition Subsidiaries’ Held	In thousands shares For the Years ended December 31, 2020 Shares at beginning of period Additions Disposals Shares at end of period 9,039 — — 9,039 In thousands shares For the Years ended December 31, 2019 Shares at beginning of period Additions Disposals Shares at end of period 9,039 — — 9,039
	Shares at beginning of period 9,039	Additions —	Disposals —

The subsidiaries held the shares of the Corporation were as follows:

December 31, 2020： CHENG-HSIN Engineering & Services CO.,LTD. Sunrise investment Corp.	Shares (in thousands) 2,772 6,267	Amount ＄ 31,340 85,540 ＄ 116,880	Fair Value
			＄ 148,588 335,885
			＄ 484,473

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December 31, 2019： CHENG-HSIN Engineering & Services CO.,LTD. Sunrise investment Corp.	Shares (in thousands) 2,772 6,267	Amount ＄ 31,340 85,540 ＄ 116,880	Fair Value ＄ 67,364 152,276
			＄ 219,640

(22)Operating revenue

) Operating revenue
Sales revenue Service revenue Construction revenue Rental revenue Engineering revenue Professional revenue Maintenance revenue Other operating revenue	For the Years ended December 31, 2020 2019 $ 6,738,847 $ 2,596,041 1,298,835 1,606,697 1,618,090 － 34,135 33,013 6,955,217 4,561,874 7,856 6,760 953,123 938,947 3,121 2,392 $ 17,609,224 $ 9,745,724
		2019
		$ 2,596,041 1,606,697 － 33,013 4,561,874 6,760 938,947 2,392
		$ 9,745,724

(A)Disaggregation of revenue from contracts with customers

For the Years ended December 31, 2020 ：

By operating segments ElectricityPower Service Engineering and other Total The timing of revenue recognition The revenue recognized at a point in time $ 6,316,085 $ － $ 2,043,973 $ 8,360,058 The revenue recognized over time 6,812,614 1,710,970 725,582 9,249,166 $ 13,128,699 $ 1,710,970 $ 2,769,555 $ 17,609,224 For the Years ended December 31, 2019： By operating segments Electricity Power Engineering Service Other Total The timing of revenue recognition The revenue recognized at a point in time $ 2,218,813 $ 360,447 $ － $ 19,173 $ 2,598,433 The revenue recognized over time 4,450,849 1,050,576 1,606,697 39,169 7,147,291 $ 6,669,662 $ 1,411,023 $ 1,606,697 $ 58,342 $ 9,745,724 (B) Contract balances December 31, 2020 December 31, 2019 Contract assets Construction $ 1,182,623 $ 1,319,541 Offer of services and maintenances 1,138,869 280,074 Others 39,767 58,123 Less: Loss allowance ( 2,939) — Contract assets－current $ 2,358,320 $ 1,657,738			By operating segments	By operating segments
			Service Engineering and other $ － $ 2,043,973 1,710,970 725,582 $ 1,710,970 $ 2,769,555 By operating segments			Total
					$	8,360,058 9,249,166
					$	17,609,224
		Engineering Service $ 360,447 $ － 1,050,576 1,606,697 $ 1,411,023 $ 1,606,697 December 31, 2020 $ 1,182,623 1,138,869 39,767 ( 2,939) $ 2,358,320		Other		Total
		$				$ 2,598,433 7,147,291
		$				$ 9,745,724

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Contract liabilities Sale of goods Sale of real estate Construction Others Contract liabilities－current	December 31, 2020 $ 306,665 190,606 2,147,101 583 $ 2,644,955	December 31, 2019
		$ 141,593 491,355 2,360,288 —
		$ 2,993,236

The changes in the contract liability balances primarily result from the timing difference between the satisfaction of performance obligation and the customer’s payment. Other major changes were as follows:

Contract assets Level of completion measures change Contract liabilities Level of completion measures change	For the Years ended December 31, 2020 2019 $( 117,229) $ 594,653 $( 182,070) $( 249,565)
	2020 $( 117,229) $( 182,070)

The Corporation recognized in revenue from the beginning balance of contract liabilities was as follows:

liabilities was as follows:
Beginning balance of contract liabilities Sale of goods Offer of services and maintenances	For the Years ended December 31,
	2020 $ 35,592 31,002 $ 66,594	2019 $ 12,574 33,137 $ 45,711

(23) Interest income

erest income
Bank deposits Other	For the Years ended December 31,
	2020 $ 1,246 1,984 $ 3,230	2019
		$ 2,245 2,158
		$ 4,403

(24)Other income

Other income
			For the Years ended December 31,
			2020		2019
Dividend income	$		36	$	6,767
Other			37,009		19,993
	$		37,045	$	26,760
Other gains and losses
			For the Years ended December 31,
			2020		2019
Gain (Loss) on disposal of property,
plant and equipment		$	1,242	$(	23,889 )
Gain on disposal of investment			59,801		8,984
Gain on Lease modification			936		81
Net currency exchange gains (losses)		(	17,497 )	(	480 )
Net gains (losses) on financial assets
(liabilities) at fair value through
profit or loss		(	78,233 )		20,905
Other expenditure		(	47,879 )	(	15,488 )
Impairment loss on financial assets			－	(	78,090 )
		$(	81,630)	$(	87,977 )

(25)Other gains and losses

～40～

(26)Finance costs

Finance costs
Interest expenses Interest expenses of lease liabilities Capitalisation of interest	For the Years ended December 31, 2020 2019 $( 62,944 ) $( 42,135 ) ( 9,103 ) ( 13,429 ) 12,134 13,655 $( 59,913)$( 41,909)
	2020 $( 62,944 ) ( 9,103 ) 12,134 $( 59,913)

(27)Expenses by nature

(27) Expenses by nature	y nature	y nature	y nature
FortheYears endedDecember Classified as Operating Costs Classified as Operating Expenses Employee benefit expense Salary $ 590,447 $ 736,617 Labor & health insurance 66,903 40,791 Pension 38,837 16,011 Directors’ remuneration － 38,709 Others 39,923 49,336 Depreciation 1,028,276 28,838 Amortization 57,004 89 $ 1,821,390 $ 910,391 The additional information of number Number of employees Number of directors who are not employees Average employee benefit expense $ Average salary $ Adjustment situation of average salary	FortheYears endedDecember			31,2020	FortheYears endedDecember31,2019
	Classified as Operating Costs	Classified as Operating Expenses		Total	Classified as Operating Costs $ 526,891 59,834 33,289 － 35,996 1,189,497 111,424 $ 1,956,931	Classified as Operating Expenses	Total
	$ 590,447 66,903 38,837 － 39,923 1,028,276 57,004	$ 736,617 40,791 16,011 38,709 49,336 28,838 89		$ 1,327,064 107,694 54,848 38,709 89,259 1,057,114 57,093		$ 623,177 36,335 19,491 18,164 44,694 35,630 －	$ 1,150,068 96,169 52,780 18,164 80,690 1,225,127 111,424
	$ 1,821,390	$ 910,391		$ 2,731,781		$ 777,491	$ 2,734,422
				2020 1,775 5 892 750 7.1%
			$
			$

• A. The Corporation’s policy for compensation of directors, managers and employees is as follows:

(A) Employees

The Corporation set up the employees’ salary policies in accordance with the market salary level, the responsibilities of functional level and the operating needs, and uses the employee’s academic experience, job rank, responsibilities and personal performances as an important basis for salary assessment.

The Corporation’s annual salary adjustments are determined based on operating conditions, budgets, price levels and market salary levels.

The individual employee’s salary adjustments will be determined based on their performance and their salary competitiveness compared to same job rank.

The Corporation’s salary included recurring salary (principal salary and monthly fixed allowances and bonuses), overtime (taxable or exempt tax) and non-recurring salary (non-monthly allowance, bonuses, employee compensation, etc.).

(B) Managers

The appointment of the general manager and deputy general managers (job rank) is in accordance with the Corporation’s regulations, and the compensation policy is based on the job and responsibilities of the position, the achievement rate of the Corporation’s overall operating goals, personal performance and academic experience, and consideration of peers based on the salary level of the same nature in the market.

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(C) Director

Directors’ remuneration includes carriage fees, remuneration, attendance fees, and distribution of earnings. According to the Corporation’s articles, distribute less than 3% of current year’s profit as remuneration to directors after resolution by board of directors and reporting to shareholders’ meeting.

• B. The Corporation shall distribute greater than 1% of current year’s profit as Employees’ bonus and less than 3% of current year’s profit as remuneration to directors and supervisors after offsetting the cumulative losses, if any. The Corporation recognized accrued employees’ compensation was $17,938 thousand and $7,990 thousand for the year periods ended December 31, 2020 and 2019, respectively. The Corporation recognized accrued remuneration to directors was $35,877 thousand and $15,981 thousand for the year periods ended December 31, 2020 and 2019, respectively. These accrued based on aforementioned ratio 1% ~2%. According to changes in Accounting Estimates, the differences between these amounts and the amounts proposed in the following year are adjusted for in the year of the proposal.

• C. The appropriations of 2020 and 2019 were agreed in the meeting of board of directors on March 30, 2021 and March 27, 2020, respectively. The employees’ compensation and remuneration to directors and supervisors were as follows:

Appropriations	For the Year Ended December 31,	For the Year Ended December 31,	For the Year Ended December 31,
	2020 Employees’ compensation Remuneration to directors $ 17,938 $ 35,877	2019
	Employees’ compensation $ 17,938	Employees’ compensation $ 7,990	Remuneration to directors
			$ 15,981

There was no difference between the aforementioned amounts of the employees’ compensation approved in the board of directors’ meetings, and the amounts recognized in the financial statements.

Information on the compensation to employees and directors is available on the Market Observation Post System website of the Taiwan Stock Exchange.

(28)Income tax

• A.Components of income tax expense:

come tax Components of income tax expense:
		For the Years ended		December 31,
		2020			2019
Current tax:
Current tax on profits for the period	$	395,236		$	133,615
Income tax adjustments on prior years	(	6,334	)		13,718
Deferred tax:
Temporary differences	(	176,246	)	(	7,572 )
Total income tax expense recognized in
profit or loss	$	212,656		$	139,761

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

Profit before income tax Income tax payable calculated by Statutory tax rate Adjustment to effect of tax: Permanent income tax difference effect Exemption income Income tax credits Additional tax on un-appropriated earnings	For the Years ended December 31, 2020 2019 $ 1,740,024 $ 775,060 $ 348,005 $ 155,012 122,799 ( 26,677 ) ( 65,696 ) ( 1,353 ) ( 13,894 ) ( 5,373 ) 2,010 2,479

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Income tax adjustments on prior years Land Value Increment Tax Adjustments on other income tax Net differences on deferred income tax Income tax expense recognized in profit or loss	For the Years ended December 31, 2020 2019 ( 6,334 ) 13,718 2,012 － － 9,527 ( 176,246 ) ( 7,572 ) $ 212,656 $ 139,761

Under the amendment to the R.O.C Statute of Industrial Innovation in July, 2019, the amounts of unappropriated earnings in 2018 and thereafter used for building or purchasing specific assets or technologies can qualify for deduction when computing the income tax on unappropriated earnings. When calculating the undistributed earnings tax, the Corporation only deducts the amount of capital expenditure that has actually been reinvested.

B.Deferred income tax assets or liabilities as result of temporary differences

The Years ended December 31, 2020 ：

The Years ended December 31, 2020：
Deferred income tax assets Temporary differences Unrealized reduce inventory to market Unrealized loss from disposal of property, plant and equipment Unrealized deferred sales profit Other Deferred income tax liabilities Temporary differences Property, plant and equipment Exchange differences on translating foreign operations The Years ended December 31, 2019： Deferred income tax assets Temporary differences Unrealized reduce inventory to market Unrealized loss from disposal of property, plant and equipment Other	Balance at Beginning of Year $ 77,042 10,976 － 6,735 $ 94,753 $ 286,075 54,621 $ 340,696 Balance at Beginning of Year $ 74,127 11,275 3,501 $ 88,903	Recognized in Profit or Loss Balance at End of Year $ 35,607 $ 112,649 ( 10,976 ) － 155,413 155,413 ( 3,798 ) 2,937 $ 176,246 $ 270,999 $ － $ 286,075 － 54,621 $ － $ 340,696 Recognized in Profit or Loss Balance at End of Year $ 2,915 $ 77,042 ( 299 ) 10,976 3,234 6,735 $ 5,850 $ 94,753	Balance at End of Year
			$ 94,753

～43～

		Balance at	Balance at
Deferred income tax	Beginning of			Recognized in		Balance at End
liabilities		Year		Profit or	Loss		of Year
Temporary differences
Property, plant and
equipment	$	286,075		$	－	$	286,075
Exchange differences on
translating foreign
operations		54,621			－		54,621
Other			1,722	(	1,722 )		－
	$	342,418		$(	1,722 )	$	340,696
Information of unrecognized	deferred		income tax assets / liabilities associated
investments:
		December		31, 2020	December 31, 2019
Unrecognized as deferred income
tax assets
Temporary differences associated
with investments in subsidiaries		$		1,201,107	$		1,307,401
Unrecognized as deferred income
tax assets
Temporary differences associated
with investments in subsidiaries		$		16,666	$		19,228

C.Information of unrecognized deferred income tax assets / liabilities associated with investments:

D.Income tax assessed and approved situations

The Corporation income tax return filings through 2017 had been assessed and approved by tax authority. The balances of the income tax credit had been assessed and approved by tax authority in each year were adjustment.

(29)Earnings per share (EPS)

arnings per share (EPS)
		For the Years ended December 31,
		2020		2019
Basic EPS ($):
Income attributable to owners of parent	$	1,527,368	$	635,299
Weighted average number of ordinary shares
in issue used in calculating basic EPS (in
thousands)		424,902		410,961
Basic EPS ($) after tax	$	3.59	$	1.55
		For the Years ended December 31,
		2020		2019
Diluted earnings per share:
Income attributable to owners of parent	$	1,527,368	$	635,299
Assumed conversion of all dilutive potential
ordinary share:
Effect shares on convertible bonds		507		－
Income attributable to ordinary shareholders
of the parent plus assumed conversion of
dilutive potential ordinary shares	$	1,527,875	$	635,299
Weighted average number of ordinary shares
in issue used in calculating basic EPS (in
thousands)		424,902		410,961
Weighted average number of ordinary shares
of convertible bonds (in thousands)		24,430		－
Income attributable to weighted average
number of ordinary shareholders of the
parent plus assumed conversion of dilutive
potential ordinary shares (in thousands)		449,332		410,961
Diluted EPS ($) after tax	$	3.40	$	1.55

～44～

(30)Reconciliation of Liabilities from Financing Activities

The Years ended December 31, 2020： Short-term debts Lease liabilities Bonds payable Long-term liabilities (including Current portion of long-term liabilities) Guarantee deposit received Total liabilities from Financing Activities The Years ended December 31, 2019： Short-term debts Short-term bonds payable Lease liabilities Long-term liabilities(including the Current portion of long-term liabilities) Guarantee deposit received Total liabilities from Financing Activities	January 1, 2020 $ 653,584 899,274 － 4,054,492 18,730 $ 5,626,080 January 1, 2019 $ 2,070,469 1,299,008 1,882,249 647,939 15,966 $ 5,915,631	Non-cash changes Cash Flows Others December 31, 2020 $ 105,368 $ 1 $ 758,953 ( 763,094 ) 916,238 1,052,418 3,001,020 ( 1,578,465 ) 1,422,555 1,799,000 ( 722 ) 5,852,770 4,283 － 23,013 $ 4,146,577 $( 662,948 ) $ 9,109,709 Non-cash changes Cash Flows Others December 31, 2019 $( 1,416,885 ) $ － $ 653,584 ( 1,300,000 ) 992 － ( 966,056 ) ( 16,919 ) 899,274 3,407,000 ( 447 ) 4,054,492 2,764 － 18,730 $( 273,177 ) $( 16,374 ) $ 5,626,080	December 31, 2020

7. RELATED PARTY TRANSACTIONS

(1) Related party name and their relationship with the Corporation

Name of related parties CHEM USA CORPORATION (CHEM USA) Etrovision technology Co., Ltd. (Etrovision) CHENG-HSIN Engineering & Services CO.,LTD (Chesco) San-feng construction Co., Ltd. (San-feng) Wha Dun Building Management Service Co., Ltd. (Wha Dun) Sunrise investment Corp. (Sunrise) Global-Entech Co., Ltd. (Global) Tone-zoom industry Co., Ltd. (Tone-zoom) Bao-Sheng Global Co., Ltd. (Bao Cheng) FinData Technology Corp. (FinData) Accumis System Technologies Inc. (Accumis) Tian Fu Energy Co., Ltd. (Tian Fu) Tian Cin Energy Co. (Tian Cin) Tian Peng Energy Co. (Tian Peng) Tian Chong Energy Co. (Tian Chong) Chung- Hsin Energy Tech. Inc.(CET) H2 Power Tech, LLC. (H2PT) CHEM J-V Limited Jiangsu Chung-Hsin Precision Machinery Co., Ltd. (Chem Precision) Chung-Hsin Power Systems Corp.(Chem Power) Chem-tech (Shang-hai) Corp. (Chem tech) Chung-Hsin Power Systems (Shenyang) Inc. (Chem Shenyang) EGME ENERGY ECOSYSTEMS (INDIA) PRIVATE LIMITED (EGME) CHEM ENERGY SA (Pty) Ltd. (ENERGY SA)

Relationship with the Corporation

Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary (Liquidation in this period) Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary

～45～

Name of related parties CHEM FUEL CELL(M) SDN.BHD (Chem Fuel) ME ENERGY SYSTEMS LIMITED (ME HK) Sheng-yuan investment Corp. (Sheng-yuan) Guang-Hsin engineering & services Co., Ltd. (Guang-Hsin) Li-Xiang Technology Co., Ltd.(Li-Xiang) Nomura Chung-Hsin Machinery Corporation (Nomura Chung-Hsin) Fumei Development Co., Ltd. (Fumei) Wuxi Hengchi Chem switchgear Co., Ltd. (Wuxi Hengchi) CHC International Investment Corp. (Chung Chia) Director, supervisor, general manager and vice Manager

Relationship with the Corporation Subsidiary Subsidiary Associate Associate Associate Associate Associate (Disposal in this period) Associate Other related party Key management

(2) Trading transactions

A. Sales revenue

ading transactions les revenue
Subsidiaries Tian Chong Tian Peng Other Associates	For the Years ended December 31,
	2020 $ 2,656,853 2,301,254 585,746 8,099 $ 5,551,952	2019
		$ 103,104 74,539 165,483 5,677
		$ 348,803

The transactions between the Corporation, associates and related companies were based on mutually agreed terms.

B. Purchase

rchase
Subsidiaries Associates Other related parties	For the Years ended December 31,
	2020 $ 519,061 17,111 － $ 536,172	2019
		$ 362,304 29,209 228
		$ 391,741

The Corporation purchased from above mentioned subsidiaries, associates and related parties were based on mutually agreed terms.

C. Property transactions

• (A) Acquisition of property, plant and equipment

lated parties were based on mutually agreed terms. perty transactions Acquisition of property, plant and equipment	lated parties were based on mutually agreed terms. perty transactions Acquisition of property, plant and equipment	lated parties were based on mutually agreed terms. perty transactions Acquisition of property, plant and equipment
Acquisition Price For the Years ended December 31, 2020 2019 Subsidiaries $ 3,582 $ 4,162 Associates － 19,500 $ 3,582 $ 23,662 Disposal of property, plant and equipment Disposal Price Disposal Gains (losses) For the Years ended December 31, For the Years ended December 31, 2020 2019 2020 2019 Energy SA $ 2,828 $ － $ 657 $ －
	For the Years ended December 31,
	2020 $ 657	2019
		$ －

(B) Disposal of property, plant and equipment

• (C) The associates have an agreement with the Corporation to co-construction urban renewal, and use the land in the Fuxing section of Da’an district, Taipei city to acquire about 44 square meters of building in 2020.

～46～

D. Other

(A)Cost / Expenses attributable

		For the Years ended December 31,	For the Years ended December 31,
		2020	2019
Subsidiaries
H2 Power Tech, LLC.	$	115,242	$	122,835
Others		42,550		35,211
Associates		3,297		3,204
Other related parties		40		－
	$	161,129	$	161,250
(B) Other income
		For the Years ended December 31,
		2020	2019
Subsidiaries	$	896	$	432
E. Contract Assets
		December 31, 2020	December 31, 2019
Subsidiaries
Tian Chong	$	505,111	$	103,082
Tian Peng		429,356		74,516
Other		100,787		25,448
	$	1,035,254	$	203,046
F. Notes receivable
		December 31, 2020	December 31, 2019
Subsidiaries	$	1	$	－
G. Accounts receivable
		December 31, 2020	December 31, 2019
Subsidiaries
Tian Chong	$	1,302,731	$	－
Tian Peng		1,258,296		－
Other		202,166		42,330
Associates		1,200		1,474
	$	2,764,393	$	43,804
H. Accounts payable
		December 31, 2020	December 31, 2019
Subsidiaries	$	21,194	$	36,302
I. Others accounts receivable /	payable
(A) Others receivable (excluding loans to related parties)
		December 31, 2020	December 31,	2019
Subsidiaries
Chesco	$	254	$	131
San-feng		254		126
Bao Cheng		187		154
Chem Shenyang		39		207
Tian Chong		13,486		－
Other		2,406		19
Associates		－		26
	$	16,626	$	663
(B) Others payable-other
		December 31, 2020	December 31,	2019
Subsidiaries	$	11,016	$	6,383
Associates		950		1,291
	$	11,966	$	7,674

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J. Prepayments

J. Prepayments
December 31, 2020 December 31, 2019 Subsidiaries $ 12,137 $ 11,760 Associates 32,708 48,564 $ 44,845 $ 60,324 K. Contract Liabilities December 31, 2020 December 31, 2019 Subsidiaries $ 26,119 $ 39,191 Associates 26 － $ 26,145 $ 39,191 L. Guarantee deposit received December 31, 2020 December 31, 2019 Subsidiaries $ 12 $ 12 Associates － 320 $ 12 $ 332 M. Engineering contracts December 31, 2020 Contract amounts Amounts paid Subsidiaries $ 12,175 $ 2,435 December 31, 2019 Contract amounts Amounts paid Subsidiaries $ 179,804 $ 179,804 N. Construction contracts December 31, 2020 Contract amounts Amounts paid Subsidiaries $ 6,138,077 $ 835,752 December 31, 2019: None. O. Financial Provided - Other receivable December 31, 2020 December 31, 2019 Subsidiaries Energy SA $ 46,140 $ － Other 6,055 － $ 52,195 $ － Range of Interest rate 1.10% － Interest Income For the Years ended December 31, 2020 2019 Subsidiaries $ 720 $ －	December 31, 2020 $ 12,137 32,708 $ 44,845 December 31, 2020 $ 26,119 26 $ 26,145 December 31, 2020 $ 12 － $ 12 December	December 31, 2019 $ 11,760 48,564 $ 60,324 December 31, 2019 $ 39,191 － $ 39,191 December 31, 2019
		$ 12 320
		$ 332
		31, 2020
	Contract amounts $ 12,175 December Contract amounts $ 179,804 December 3	Amounts paid
		$ 2,435
		31, 2019
		Amounts paid $ 179,804 1, 2020
		Amounts paid
		$ 835,752
		December 31, 2019
		$ － －
		$ －
		－
	For the Years ended December 31,
	2020 $ 720	2019
		$ －

M. Engineering contracts

P. Dividend income (deduction of investment accounted under the equity method)

Subsidiaries Global Sunrise Associates Guang-Hsin Sheng Yuan Fumei	For the Years ended December 31,	For the Years ended December 31,
	2020 $ 2,210 － 2,210 5,679 12,903 20,344 38,926 $ 41,136	2019
		$ 4,094 24,416
		28,510
		5,054 8,258 9,477
		22,789
		$ 51,299

～48～

Q. Other

The Corporation participates in the cash capital increase of related parties and increase investments were as follows:

For the years ended December 31, 2020

Etrovision ME HK Tian Cin Tian Peng Tian Chong Tian Fu	Increase investment Shares (In thousands) Amount 6,500 $ 65,000 990 29,621 20,897 208,967 67,375 673,745 92,779 927,788 15,600 156,000 $ 2,061,121	Percentage of shares	Percentage of shares
	Shares (In thousands) 6,500 990 20,897 67,375 92,779 15,600	Before increase capital 99.99% 100.00% 50.00% 50.00% 50.00% －	After increase capital
			99.99% 100.00% 86.46% 85.32% 85.99% 52.42%

For the years ended December 31, 2019

EGME ME HK CET Tian Cin Tian Peng Tian Chong	Increase investment Shares (In thousands) Amount －$ 3,292 6,910 213,992 500 5,000 50 500 50 500 50 500 $ 223,784	Percentage of shares	Percentage of shares
		Before increase capital － － － － － －	After increase capital
			99.99% 100.00% 100.00% 50.00% 50.00% 50.00%

R. Guarantee

Guarantee
Subsidiaries	December 31, 2020 USD 1,300 thousands NTD 11,895,485	December 31, 2019
		US D 1,300 thousands NT D 1,145,000

• (3) Key management compensation

Key management compensation
Salaries and other short-term employee benefits Post-employment benefits	For the Years ended December 31,
	2020 $ 66,493 1,013 $ 67,506	2019
		$ 40,549 990
		$ 41,539

8. PLEDGED ASSETS

Assets (book values) were pledged for bank loans, trust of advance in Real Estate or engineering guarantee as follows:

gineering guarantee as follows:
Time deposits Deposit with bank Land held for construction site Property, plant and equipment Investment property Guarantee deposit paid	December 31, 2020 $ 229,599 － － 112,150 527,191 116,270 $ 985,210	December 31, 2019
		$ 239,223 3,314 242,956 113,733 431,023 99,498
		$ 1,129,747

～49～

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

Except for the notes disclosure, the Corporation has other significant contract commitments and contingencies were as follows:

• (A) The Corporation had commitments for engineering contracts guaranteed for a certain period of time after equipments or project completed, delivered and accepted by customers.

• (B) As of December 31, 2020 and 2019, amounts of significant engineering contracts under construction signed were $17,792,245 thousands and $15,971,498 thousands; and payments made were $11,719,030 thousands and $9,630,296 thousands.

• (C) As of December 31, 2020 and 2019, the unused letters of credit listed as follows:

				Expressed in thousands
Currency	December	31, 2020	December 31, 2019
USD		477		110
Japanese Yen		31,447		22,194
Euro		1,475		16
(D) As of December 31, 2020 and 2019, the guarantees of significant engineering
contracts pledged by banks were as follows:
	December	31, 2020	December 31, 2019
Bank of Taiwan	＄	1,458,712	＄	1,219,767
Hua Nan Commercial Bank		1,112,295		860,489
First Bank		21,464		45,643
Union Bank of Taiwan		118,336		32,291
Mega International Commercial
Bank Co., Ltd		593,382		936,906
Land Bank of Taiwan		115,000		148,650
The Export-Import Bank of the
ROC		6,541		6,541
Shanghai Commercial &
Savings Bank, Ltd.		333,176		169,661
Bank of Panhsin		37,616		4,455
Yuanta Bank		10,000		－
DBS Bank		14,420		－
	＄	3,820,942	＄	3,424,403

• (E) As of December 31, 2020 and 2019, the Corporation issued notes as guarantee for bank borrowing and constructions, etc. were $31,918,725 thousands and $17,162,776 thousands, respectively.

• (F) As of December 31, 2020 and 2019, the Corporation endorsed as guarantees for other companies including related parties were NTD $12,086,019 thousands, USD $1,300 thousands, NTD $1,387,956 thousands and USD $1,300 thousands, respectively.

• (G) The Corporation had been bid for engineer project of Linyuan plant of CPC Corporation, and signed the contract on April 18, 2000. The Corporation had been completed this project and be accepted by CPC. However, CPC arbitrarily deducted $23,716 thousands from the payment to the Corporation because CPC claimed the Corporation delayed the power generation project, and rejected additional construction payment $15,630 thousands because CPC disagreed this additional construction payment. The Corporation sued CPC for the deduction and requested payment $47,530 thousands with interest. Lawsuits under processing were listed as follows:

• A. According the first judgment of the court, CPC should pay the Corporation $40,964 thousands. CPC did not accept the judgment and appealed the case. The second judgment overruled the amount exceeding $27,980 thousands. Both CPC and the Corporation appealed the case.

• B. According the second judgment of the court, CPC should pay the Corporation $1,645 thousands and overruled the rest.

～50～

• C. Both CPC and the Corporation appealed the case. CPC should pay the Corporation a $1,645 thousands was sure and the rest under processing of Taiwan Supreme court.

• D. The Taiwan Supreme court had judgment that CPC Corporation should pay the Corporation other $8,144 thousands with interest and rejected the arbitration request of the Corporation on September 29, 2016. Both CPC and the Corporation appealed the case. Judgment No. 466 of the Supreme Court on 2017, abandoned the original trial that is not conducive to the part of the Corporation, sent back to the High Court more trial, and overruled the CPC Corporation’s appeal. So the judgment No. 113 on 2012 was sure. Other requests of the Corporation were tried by the Taiwan Supreme court.

10. SIGNIFICANT CATASTROPHE

None.

11. SUBSEQUENT EVENTS

None.

12. OTHERS

• (1) Capital risk management

The Corporation manages its capital to ensure that entities in the Corporation will be able to continue as going concerns while maximizing the return to stakeholders through the optimisation of the debt and equity balance. The Corporation adopts prudent risk management strategy and performs audit on a regular basis. The capital structure of the Corporation is determined according to the business development strategies and operational requirements.

• (2) Financial instruments

• (A) Categories of financial instruments

Financial assets Measured at FVTPL Mandatorily at FVTPL Measured at amortised cost (Note 1) Financial liabilities Measured at FVTPL Measured at amortised cost (Note 2)	December 31, 2020 $ 72,969 5,876,394 $ 5,949,363 $ 10,200 11,446,877 $ 11,457,077	December 31, 2019
		$ 163,974 1,803,829
		$ 1,967,803
		$ － 6,008,757
		$ 6,008,757

• Note 1: The amount includes cash and cash equivalents, notes and accounts receivable (including related parities), other receivables (including related parities), guarantee deposits paid, lease receivables, restricted assets and other financial loans and receivables measured at amortized cost.

• Note 2: The amount includes short-term debts, short-term bonds payable, notes and accounts payable (including related parities), other payables (including related parities), long-term debts and guarantee deposit received measured at amortized cost.

• (B) Fair value of financial instruments

• a. Measured without using fair value

The Corporation’s measured at amortized cost of financial assets / loans and receivables and financial liabilities had carrying values that very close to their fair values.

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b. Measured by using fair value

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

1. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

2. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

3. Level 3 inputs are unobservable inputs for the asset or liability.

The following table provides an analysis of financial assets and liabilities that are measured subsequent to initial recognition at fair value on the recurring basis:

Fair value on a recurring basis Financial assets at FVTPL Listed stocks Unlisted stocks Beneficiary certificate Financial liabilities at FVTPL Call / Put option of convertible bond Fair value on a recurring basis Financial assets at FVTPL Listed stocks Unlisted stocks Beneficiary certificate		December 31, 2020	December 31, 2020
	Level 1 Level 2 Level 3 $ 7,673 $ －$ － － － 60,727 4,569 － － $ 12,242 $ －$ 60,727 $ －$ 10,200 $ － December 31, 2019			Total
				$ 7,673 60,727 4,569
				$ 72,969
				$ 10,200
	Level 1 $ 8,625 － 4,343 $ 12,968	Level 2 $ － － － $ －	Level3 $ － 151,006 － $ 151,006	Total
				$ 8,625 151,006 4,343
				$ 163,974

The Corporation held financial assets and liabilities measured at fair value on a recurring basis were no transfers between Level 1 and Level 2 for the years ended December 31, 2020 and 2019.

Reconciliation of Level 3 fair value measurements of financial instruments

The financial assets measured at Level 3 fair value were equity investments classified as financial assets at FVTPL. Reconciliations for the year of 2020 and 2019 were as follows:

2019 were as follows:
Balance at beginning of period Increase for the period Recognized in profit (loss) Balance at end of period	FortheYears endedDecember31,
	2020 $ 151,006 － ( 90,279) $ 60,727	2019 $ 127,770 1,900 21,336 $ 151,006

c. Valuation techniques and assumptions applied for the purposes of measuring fair value

The fair values of financial assets and financial liabilities are determined as follows:

• The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active and liquid markets are determined with reference to quoted market prices;

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• The call / put option of convertible bonds adopt the binomial tree model to estimate the fair value. The significant observable input value used is stock price volatility.

• The financial assets and liabilities without active and liquid markets are determined with estimate of fair value by market method. That based on past financial activities, value of similar companies, technique development of company and its expectations of market development and so on.

• Derivatives Instruments were evaluated based on evaluation models accepted by market users such as Discount method and option pricing model. Forward exchange contracts are measured using forward exchange rates that are derived from quoted market prices.

• (C)Financial risk management objectives and policies

The Corporation’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Corporation’s overall risk management programmed focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Corporation’s financial position and financial performance. The important financial activities are reviewed by Board of Directors in accordance with procedures required by relevant regulations or internal controls. The Corporation treasury identifies, evaluates and hedges financial risks in close co-operation with the Corporation’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters and investment of excess liquidity.

A. Market risk Foreign exchange risk

Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities and net investments in foreign operations. To manage their foreign exchange risk, the Corporation use forward foreign exchange contracts for hedge.

The Corporation has no hedge for investments in foreign operations due to these are strategic investment.

Sensitive analyses of foreign exchange risk are calculated for foreign currency items on the end of reporting date.

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

were as follows:
(foreign currencies : function currency) Financial assets Monetary items USD: NTD Euro: NTD Non-monetary items USD: NTD Financial liabilities Monetary items USD: NTD Euro: NTD	December 31,2020 Foreign Currency (In Thousands) Exchange Rate 9,329.57 28.48 1,068.57 35.02 80,403.98 28.48 1,788.14 28.48 71.65 35.02	December 31,2019
	Foreign Currency (In Thousands) 9,329.57 1,068.57 80,403.98 1,788.14 71.65	Foreign Currency (In Thousands) 7,362.20 786.22 80,310.96 178.01 59.56	Exchange Rate
			29.98 33.59 29.98 29.98 33.59

When new Taiwan dollars are upvaluation with foreign currency about 1%, the incomes are decreased $2,497 thousands and $2,398 thousands, respectively for the years ended December 31, 2020 and 2019. When the new Taiwan dollars are

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devaluation with foreign currency about 1%, its impact amount is the negative amount of the same amount.

Interest rate risk

Interest rate risk is the risk in changes of fair value on financial instruments due to market interest ratio changed. Interest rate risk arises from deposits with banks and long-term or short-term debts.

Sensitive analyses of interest rate risk are determined with exposure interest risk on the end of reporting date and all other variables were held constant. When the interest ratios are increase 1 yard, the incomes are decreased $6,785 thousands and $5,276 thousands, respectively for the years ended December 31, 2020 and 2019.

Other Price risk

The Corporation is exposed to equity securities price risk because of financial asset at fair value through profit or loss. All of material equity investment should be approved by director of board.

Sensitive analyses of price risk in equity instruments are calculated in changes of fair value on the end of reporting date. When the value of equity instruments are increase / decrease 5%, the incomes are increased / decreased $614 thousands and $648 thousands, respectively for the years ended December 31, 2020 and 2019. B. Credit risk

Credit risk refers to the risk that counterparties will default on their contractual obligations resulting in financial loss to the Corporation. Credit risk arises from receivables from operating activities and deposits with banks, fixed revenues investments and other financial instruments from investing activities. The credit risk of operating and financial are managed individually.

Operating credit risk

The Corporation has set up the processes about credit risk management for maintenance the quality of accounts receivables.

Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. The Corporation will use instruments for increasing credit at appropriate time, such as prepayments for purchasing; collateral and guarantee etc. for reduce the credit risk.

As of December, 2020 and 2019, the accounts receivables of customers that are more than 10% of operating revenues are base on accounts receivables are 61% and 30%, respectively. Others accounts receivables are not material for centralized credit risk.

Financial credit risk

The finance department of the Corporation is responsible for measurement and monitor in credit risk of deposit with bank and other financial instruments. For banks and financial institutions, only independently rated parties with investing grade, corporation organization and governments are accepted. Therefore, there are not material credit risks.

Liquidity risk Management

The Corporation manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring the use of loan credits and the compliance to loan contracts.

The tables below have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date the Corporation can be required to pay.

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Non derivatives financial liabilities : Short-term debts Accounts and notes payable (including related parties) Other accounts payable (including related parties) Lease liabilities Current portion of long-term liabilities Bonds payable Long-term debts Non derivatives financial liabilities : Short-term debts Accounts and notes payable (including related parties) Other accounts payable (including related parties) Lease liabilities Current portion of long-term liabilities Long-term debts		December31,2020	December31,2020
	Less Than 1 Year $ 758,953 2,698,549 691,037 497,072 950,000 － － $ 5,595,611	Between 2 Year and 3 Years Between 4 Years and 5 Years Over 5 Years $ －$ －$ － － － － － － － 495,892 57,660 1,794 － － － － 1,422,555 － 4,902,770 － － $ 5,398,662 $ 1,480,215 $ 1,794 December31,2019			Total
					$ 758,953 2,698,549 691,037 1,052,418 950,000 1,422,555 4,902,770
					$ 12,476,282
	Less Than 1 Year $ 653,584 751,805 530,146 581,061 700,000 － $ 3,216,596	Between 2 Year and 3 Years $ － － － 274,747 － 3,354,492 $ 3,629,239	Between 4 Years and 5 Years Over 5 Years $ －$ － － － － － 39,300 4,166 － － － － $ 39,300 $ 4,166		Total
					$ 653,584 751,805 530,146 899,274 700,000 3,354,492
					$ 6,889,301

13. ADDITIONAL DISCLOSURES

• (1)Significant transactions information and (2) Information on investees:

• (A)Financing provided: attached table 1.

• (B)Endorsement/guarantee provided: attached table 2.

• (C)Marketable securities held: attached table 3.

• (D)The cumulative buying or selling amount of one specific security exceeding of $300 million or 20 percent of the paid-in capital: attached table 4.

• (E)Acquisition of individual real estates at costs exceeding of $300 million or 20% of the paid-in capital: None.

• (F)Dispose of individual real estates at costs exceeding of $300 million or 20% of the paid-in capital: None.

• (G)Total purchase from or sale to related parties amounting to exceeding of $100 million or 20% of the paid-in capital: attach table 5.

• (H)Receivables from related parties amounting to exceeding of $100 million or 20% of the paid-in capital: attached table 6.

• (I)Derivative financial transactions: refer to Note 6(3).

• (J)Names, locations, and related information of investees over which the company exercises significant influence: attach table 7.

(3)Information of investment in China

• (A)Names, main businesses, total paid-in capital, method of investment, investment out / in flows, percentage of ownership, investment profit (loss) of this period, Book value, accumulated amount of investment income remitted back to Taiwan and upper limit on investment in China. (Table 8)

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• (B)Significant inter-company transactions, price, credit term, unrealized profit or loss and other related information for understanding the effect of investment in China. (Refer to Note 7)

• (4) Information of major shareholders: attach table 9.

14. SEGMENT FINANCIAL INFORMATION

The Corporation had disclosure the segment financial information in the consolidated financial statements.

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Chung-Hsin Electric and Machinery Manufacturing Corp. Financing provided details For the Years Ended December 31, 2020 In Thousands of New Taiwan Dollars

Att	ached table 1
No	Financing company’s name	Counter party	Financial statement account	Related Party	Maximum balance for the period	Ending balance (2)	Amounts of loan (3)	Interest Rate (%)	Type of financing (1)	Transaction amount	Reasons for short-term financing	Allowance for bad debt	Coll	ateral	Financing limit for each borrowing company	Financing company’s financing amount limit
													Item	Value
0	Chung-Hsin Electric and Machinery Manufacturing Corp	CHEM ENERGY SA PROPRIETARY LIMITED	Other Receivable	Yes	46,675	46,140	46,140	－	1	46,140	Business Dealings	－	－	－	(12) 46,140	(12) 2,130,059
		EGME ENERGY ECOSYSTEMS (INDIA) PRIVATE LIMITED	Other Receivable	Yes	6,055	6,055	6,055	－	1	6,055	Business Dealings	－	－	－	(12) 6,055	(12) 2,130,059
		San-feng construction Co.,Ltd.	Other Receivable	Yes	100,000	100,000	－	1.10%	2	－	Operation needed	－	Note	100,000	(11) 2,000,000	(4) 4,260,118
		Tian Chong Energy Co.,Ltd.	Other Receivable	Yes	200,000	200,000	－	1.10%	2	－	Operation needed	－	－	－	(11) 2,000,000	(4) 4,260,118
		Tian Peng Energy Co., Ltd.	Other Receivable	Yes	200,000	200,000	－	1.10%	2	－	Operation needed	－	－	－	(11) 2,000,000	(4) 4,260,118
		Tian Cin Energy Co., Ltd.	Other Receivable	Yes	100,000	100,000	－	1.10%	2	－	Operation needed	－	－	－	(11) 2,000,000	(4) 4,260,118
1	CHENG-HSIN Engineering & Services CO.,LTD	Etrovision technology Co.,Ltd.	Other Receivable	Yes	20,000	－	－	1.55%~1.80%	2	－	Operation needed	－	－	－	(7) 45,000	(4) 279,459
		Wei-Chi Precision Co., Ltd.	Other Receivable	No	3,500	3,427	3,427	3.00%	2	－	Operation needed	3,427	Check	4,030	(7) 45,000	(4) 279,459
		Li-Xiang Technology Co.,Ltd.	Other Receivable	Yes	12,500	12,500	12,500	1.80%~2.50%	2	－	Operation needed	－	Check	12,500	(7) 45,000	(4) 279,459
		San-feng construction Co.,Ltd.	Other Receivable	Yes	45,000	45,000	－	1.60%	2	－	Operation needed	－	－	－	(7) 45,000	(4) 279,459
2	Sunrise investment Corp.	Guang-Hsin engineering & services Co.,Ltd.	Other Receivable	Yes	45,000	45,000	43,550	1.20%~1.50%	2	－	Operation needed	－	Note	45,000	(7) 45,000	(4) 250,359
		Shengyi electric and machineryCo.	Other Receivable	No	10,000	10,000	10,000	1.60%~1.80%	2	－	Operation needed	－	Note	30,000	(7) 45,000	(4) 250,359
		Etrovision technology Co.,Ltd.	Other Receivable	Yes	45,000	45,000	22,792	1.20%	2	－	Operation needed	－	－	－	(7) 45,000	(4) 250,359
		Nomura Chung-Hsin machineryCorporation	Other Receivable	Yes	39,000	39,000	33,800	1.20%	2	－	Operation needed	－	Note	39,000	(7) 45,000	(4) 250,359
		Sheng Yuan investment Corp.	Other Receivable	Yes	30,000	30,000	－	1.20%	2	－	Operation needed	－	Note	30,000	(7) 45,000	(4) 250,359
3	San-feng construction Co., Ltd.	FinData Technology Corp.	Other Receivable	Yes	55,000	55,000	55,000	1.50%~1.55%	2	－	Operation needed	－	Note	55,000	(8) 100,000	(5) 276,482
		Nomura Chung-Hsin machineryCorporation	Other Receivable	Yes	5,000	－	－	1.00%	2	－	Operation needed	－	－	－	(8) 100,000	(5) 276,482
4	CHEM Corp.	Chemly power equipment Corp.	Other Receivable	Yes	45,375	14,240	14,240	1.50%	2	－	Operation needed	－	－	－	(6) 208,002	(4) 832,009
		Chung-Hsin Power Systems Corp.	Other Receivable	Yes	90,750	－	－	1.50%	2	－	Operation needed	－	－	－	(6) 208,002	(4) 832,009
		Archers Systems Co., Ltd.	Other Receivable	No	2,390	2,250	2,250	5.00%	2	－	Operation needed	2,250	Note	2,460	(6) 208,002	(4) 832,009
5	Chemly power equipment Corp.	Chem-tech (Shang-hai) Corp.	Other Receivable	Yes	6,970	4,354	4,354	1.50%	2	－	Operation needed	－	－	－	(9) 31,658	(4) 42,211
		Chung-Hsin Power Systems (Shenyang) Inc.	Other Receivable	Yes	13,069	13,065	13,065	1.60%	2	－	Operation needed	－	－	－	(9) 31,658	(4) 42,211

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		Jiangsu Fumei Landscape & Real Esta Development Co.,Ltd.	Other Receivable	Yes	8,713	8,710	8,710	1.50%	2	－	Operation needed	－	－	－	(9) 31,658	(4) 42,211
6	CHEM J-V Limited	Chung-Hsin Power Systems Corp.	Other Receivable	Yes	43,564	13,065	13,065	1.50%	2	－	Operation needed	－	－	－	(10) 47,526	(4) 126,735
7	CHEM Power Limited	Chung-Hsin Power Systems(Shenyang)Inc.	Other Receivable	Yes	90,750	85,440	72,339	0.50%~1.50%	2	－	Operation needed	－	－	－	(6) 164,237	(4) 656,947
		Jiangsu Fumei Landscape & Real Esta Development Co.,Ltd.	Other Receivable	Yes	13,065	13,065	－	1.50%	2	－	Operation needed	－	－	－	(6) 164,237	(4) 656,947

(1)Type of financing: 1 business dealings 2 necessary for short term financing.

(2)The amounts of finance were approved by resolution of directors.

(3)The actual amounts of loan happened.

(4)Not exceeding 40% of the net equity current period.

(5)Not exceeding 50% of the net equity current period.

(6)Finance of single company limited to the whole year business transaction amount of latest year. Short-term financing did not exceeding 10% of the net equity current period.

(7)Not exceeding NT$ 45,000 thousands for each counter party.

(8)Not exceeding NT$ 100,000 thousands for each counter party.

• (9)Not exceeding 30% of the net equity current period

• (10)Not exceeding 15% of the net equity current period for each counter party.

(11) Not exceeding NT$2,000,000 thousands for each counter party.

(12)Finance of single company limited to the whole year business transaction amount of latest year. Short-term financing did not exceeding 20% of the net equity current period or the amount of business dealings. The amount of business dealings is the higher of purchase or sales.

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Chung-Hsin Electric and Machinery Manufacturing Corp.

Endorsement / Guarantee provide For the Years Ended December 31, 2020

In Thousands of New Taiwan Dollars, except as otherwise indicated

Atta	ched table 2
No	Endorsement / guarantee Provider	Endorsement / guarantee for		Amount limit on each endorsement / guarantee (2)	Maximum balance of endorsement / guarantee during the period	Ending balance of endorsement / guarantee	Amount limit on each endorsement / guarantee	Endorsement / guarantee amount backed by property	Accumulated amount of endorsement / guarantee to net equity (%)	Maximum endorsement / guarantee amount allowed (1)	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of endorsements /guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China
		Name	Relation
0 0 0 0 0 0 0 0 0 0 0 0	Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp. Chung-Hsin Electric and Machinery Manufacturing Corp.	Chung-Hsin Power Systems (shengyang) Inc. Global-Entech Co., Ltd. CHENG-HSIN Engineering & Services CO.,LTD San-feng construction Co., Ltd. Wha Dun Building Management Service Co., Ltd. Bao-Sheng Global Co.,Ltd. Tian Chong Energy Co., Ltd. Tian Peng Energy Co., Ltd. Tian Cin Energy Co., Ltd. Matian Optoelectronics Co., Ltd. Tagumo Technology Co., Ltd. Jushengsheng Construction Co., Ltd.	2 2 2 2 2 2 2 2 2 1 1 1	15,975,441 15,975,441 15,975,441 15,975,441 15,975,441 15,975,441 15,975,441 15,975,441 15,975,441 15,975,441 15,975,441 15,975,441	US 39,325 (1,300thousands) 30,000 1,000,000 360,000 10,000 460,000 5,597,587 4,223,898 214,000 95,180 95,354 242,956	US 37,024 (1,300thousands) 30,000 1,000,000 360,000 10,000 460,000 5,597,587 4,223,898 214,000 95,180 95,354 －	US 37,024 (1,300thousands) 8,253 96,046 327,901 1,752 196,383 100,572 77,698 － 95,180 95,354 －	37,024 30,000 1,000,000 360,000 10,000 460,000 102,000 100,000 － － － 194,100	0.35% 0.28% 9.39% 3.38% 0.09% 4.32% 52.56% 39.66% 2.01% 0.89% 0.90% －	21,300,588 21,300,588 21,300,588 21,300,588 21,300,588 21,300,588 21,300,588 21,300,588 21,300,588 21,300,588 21,300,588 21,300,588	Yes Yes Yes Yes Yes Yes Yes Yes Yes No No No	No No No No No No No No No No No No	Yes No No No No No No No No No No No
					Total 12,368,300	Total 12,123,043	Total 1,036,163		113.83%
1 1 1	CHENG-HSIN Engineering & Services CO.,LTD CHENG-HSIN Engineering & Services CO.,LTD CHENG-HSIN Engineering & Services CO.,LTD	San-feng construction Co., Ltd. Chung-Hsin Electric and Machinery Manufacturing Corp. Bao-Sheng Global Co.,Ltd.	3 4 3	(3) 2,130,059 (3) 2,130,059 (3) 2,130,059	48,000 131 14,256	48,000 － －	40,000 － －	－ － －	(5) 0.45% (5) － (5) －	(4) 5,325,147 (4) 5,325,147 (4) 5,325,147	No No No	No Yes No	No No No
2	San-feng construction Co., Ltd.	Chung-Hsin Electric and Machinery ManufacturingCorp.	4	(3) 2,130,059	146,248	－	－	－	(6) －	(4) 5,325,147	No	Yes	No

(1)Not exceeding 2 times of the Corporation’s current year net equity.

(2)Not exceeding 1.5 times of the Corporation’s net equity for each company. Exclude the entity which the corporation owned 90% of voting shares directly or indirectly and the guarantee amount could not exceed 10% of the Corporation’s net

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equity. However, the companies that the Corporation directly or indirectly holds 100% of the voting shares are not limited to this.

(3)Not exceeding 20% of the parent company’s current year net equity for each entity.

• (4)Not exceeding 50% of the parent company’s current year net equity.

(5)The percentage of accumulate endorsement and guarantee amount of CHENG-HSIN Engineering & Services CO., LTD.

(6)The percentage of accumulate endorsement and guarantee amount of San-feng construction Co., Ltd.

• (7)Provide notes as a guarantee.

(8)The relative between Endorsement / Guarantee providing are as follows: a. business between companies; b. direct investment exceeding 50% of the subsidies; c. investment exceeding 50% of the subsidies by parent and its other subsidies; d. direct investment exceeding 90% of parent company by the company and its subsidies; e. taking insurances to each other under engineering contract; f. shareholder’s guarantee by shares of the company due to common investment relationship; g. in the same industry, the Consumer Protection Law provides performance guarantees and joint guarantees for pre-sale house sales contracts.

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Chung-Hsin Electric and Machinery Manufacturing Corp. Marketable securities held (excluding subsidiaries and associates) December 31, 2020

In Thousands of New Taiwan Dollars, except as otherwise indicated

Attached table 3-1
Holding company / Type of marketable security	Name of marketable security	Relation with the Company	Financial statement account	Ending balance				Remark
				Shares	Book value	(%)	Market value(Note)
The Corporation	Stock Pacific construction Co., Ltd. Ascent solar Beneficiary Certificate Schroder International Selection Fund Emerging Markets A Accumulation Subtotal	－ － －	Financial assets at FVTPL – current Financial assets at FVTPL – current Financial assets at FVTPL – current	770,124 8,400 100,000.00	7,671 2 4,569	0.20% －	7,671 2 4,569
					12,242		12,242
	Stock Powerchip Technology Corporation Powerchip Semiconductor Manufacturing Corp Quan-you technology Co., Ltd Xian-han Co., Ltd. Cotech engineering Corp Subtotal	－ － － － －	Financial assets at FVTPL – noncurrent Financial assets at FVTPL – noncurrent Financial assets at FVTPL – noncurrent Financial assets at FVTPL – noncurrent Financial assets at FVTPL – noncurrent	675,197 1,236,531 1,200,000 8,373,688 2,093,191	－ 18,459 － 42,268 －	0.05% 0.04% － 19.94% 2.62%	－ 18,459 － 42,268 －	Preferred stock
					60,727		60,727
CHENG-HSIN Engineering & Services CO.,LTD	Stock Chung-hsin E&M manufacturing Corp. Cotech engineering Corp. Beneficiary Certificate Fu Hua Youli Currency Fund Subtotal	Parent company － －	Financial assets at FVTOCI – noncurrent Financial assets at FVTPL – noncurrent Financial assets at FVTPL – current	2,772,162 3,924,926 6,923,872.00	148,588 － 94,010	0.58% 4.91%	148,588 － 94,010	2,712,500 shares as collateral
					242,598		242,598
Wha Dun Building Management Service Co., Ltd.	Beneficiary Certificate Fu Hua Youli Currency Fund	－	Financialassets atFVTPL –current	694,041.30	9,423	－	9,423
Global-Entech Co., Ltd.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Financial assets at FVTPL – current	1,107,479.00	15,037	－	15,037
Chung- Hsin Energy Tech. Inc.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Financial assets at FVTPL – current	350,652.40	4,761	－	4,761
Tian Chong Energy Co., Ltd.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Financial assets at FVTPL – current	825,909.30	11,214	－	11,214
Tian Peng Energy Co., Ltd.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Financial assets at FVTPL – current	487,375.00	6,617	－	6,617
Tian Cin Energy Co., Ltd.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Financial assets at FVTPL – current	687,452.30	9,334	－	9,334
Tian Fu Energy Co., Ltd.	Beneficiary Certificate Fu Hua Youli CurrencyFund	－	Financial assets at FVTPL – current	295,013.50	4,006	－	4,006
CHEM Corp.	Equity AblyEnterprise Limited	－	Financial assets at FVTPL – noncurrent	US 9,969	214	19.94%	214
CHEM J-V Limited	Equity Toko electric (Suzhou) Co., Ltd. Hitachi (Suzhou) EHV Switchgear Corp. Subtotal	－ －	Financial assets at FVTPL – noncurrent Financial assets at FVTPL – noncurrent	US 1,048,000 US 500,000	26,206 －	18.99% 2.50%	26,206 －
					26,206		26,206

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Chung-Hsin Electric and Machinery Manufacturing Corp. Marketable securities held (excluding subsidiaries and associates) December 31, 2020

In Thousands of New Taiwan Dollars, except as otherwise indicated

Attached table 3-2
Holding company / Type of marketable security	Name of marketable security	Relation with the Company	Financial statement account	Ending balance				Remark
				Shares	Book value	(%)	Market value(Note)
ME ENERGY SYSTEMS LIMITED	Stock ELEMENT ONE LLC Equity Shanghai Shunhua New Energy System Co., Ltd.	－ －	Financial assets at FVTPL – noncurrent Financial assets at FVTOCI – noncurrent	428,572 US 5,371,416	－ 98,273	19.65% 6.62%	－ 98,273
Sunrise investment Corp.	Beneficiary Certificate Franklin Templeton SinoAm AI Hi-Tech Fund Fu Hua Youli Currency Fund Stock Chung-hsin E&M manufacturing Corp. Zhengyu technology engineering Co., Ltd. Hwa-sheng venture capital Co., Ltd. Kaohsiung rapid transit Co., Ltd. NEXTLINK Inc. An Qing Innovation Investment Co., Ltd. Subtotal	－ － Parent company － － － － －	Financial assets at FVTPL – current Financial assets at FVTPL – current Financial assets at FVTOCI – non current Financial assets at FVTPL – noncurrent Financial assets at FVTPL – noncurrent Financial assets at FVTPL – noncurrent Financial assets at FVTPL – noncurrent Financial assets at FVTPL – noncurrent	490,000.00 4,916,539.70 6,266,514 3,256,550 6,579 2,572,127 6,522,129 1,557,000	5,071 66,755 335,885 52,326 656 27,086 9,564 12,100	－ － 1.32% 13.92% 4.17% 0.92% 9.03% 3.37%	5,071 66,755 335,885 52,326 656 27,086 9,564 12,100	3,000,000 shares as collateral
					509,443		509,443
Nantong Shengyi precision machineryCo.	Financial products such as fixed profits of RMB,etc	－	Financial assets at FVTPL – current	－	29,055	－	29,055

～ 62 ～

Chung-Hsin Electric and Machinery Manufacturing Corp.

The cumulative buying or selling amount of one specific security exceeding of $300 million or 20 percent of the paid-in capital

December 31, 2020

In Thousands of New Taiwan Dollars, except as otherwise indicated

Attached table 4
Company Name	Marketable Securities Type and Name	Financial Statement Account	Counterparty	Nature of Relationship	Beginning Balance		Acquisition			Disposal			Ending Balance (Note)
					Shares/Units	Amount	Shares/Units	Amount	Shares/Units	Amount	Carrying Value	Gain/Loss on Disposal	Shares/Units	Amount
San-feng construction Co., Ltd.	Tian Fu Energy Co., Ltd.	Investment using equity method	Non-related party	None	－	－	14,160,000	(3) 490,388	－	－	－	－	14,160,000	490,388
The Corporation	Tian Peng Energy Co., Ltd.	Investment using equity method	－	Subsidiary	50,000	(1) －	(2) 67,374,520	(3) 346,271	－	－	－	－	67,424,520	346,271
The Corporation	Tian Chong Energy Co., Ltd.	Investment using equity method	－	Subsidiary	50,000	(1) －	(2) 92,778,760	(3) 532,979	－	－	－	－	92,828,760	532,979

(1) Under other non-current liability.

(2) The increase on shares was cause by participating in cash capital increase for the period.

(3) The acquisition in the period includes cash capital increase, share of (profit) loss of associates and joint ventures accounted for using equity method and related equity adjustments.

～ 63 ～

Chung-Hsin Electric and Machinery Manufacturing Corp.

Purchase from or sale to related parties amounting exceeding $100 million or 20% of the Company paid-in capital For the Years Ended December 31, 2020

In Thousands of New Taiwan Dollars

Attached table 5
Company Name	Related Party	Nature of Relationships		Transaction Details			Differences in transaction terms compared to third party transactions		Notes/Accounts Receivable (Payable)		Remark
			Purchase / Sales	Amount	Percentage of total purchase or sales	Credit term	Unit Price	Credit term	Balance	Percentage of total Notes/Accounts Receivable (Payable)
The Corporation	Tian Cin Energy Co., Ltd.	Investment using equity method	Sales	449,194	2.55%	－	－	－	Accounts receivable 187,118 Contract assets 98,952	3.92% －
The Corporation	Tian Chong Energy Co., Ltd.	Investment using equity method	Sales	2,656,853	15.09%	－	－	－	Accounts receivable 1,302,731 Contract assets 505,111	27.26% －
The Corporation	Tian Peng Energy Co., Ltd.	Investment using equity method	Sales	2,301,254	13.07%	－	－	－	Accounts receivable 1,258,296 Contract assets429,356	26.33% －
The Corporation	Bao-Sheng Global Co., Ltd.	Investment using equitymethod	Purchases	128,959	1.06%	－	－	－	Accounts payable 17,862	0.66%
The Corporation	Chung-Hsin Power Systems Corp.	Investment using equity method	Purchases	144,216	1.18%	－	－	－	－	－
The Corporation	Jiangsu Chung-Hsin Precision Machinery Co., Ltd.	Investment using equity method	Purchases	186,805	1.52%	－	－	－	Accounts payable 2,381	0.09%

～ 64 ～

Chung-Hsin Electric and Machinery Manufacturing Corp.

Receivables from related parties amounting to exceeding of $100 million or 20% of the paid-in capital December 31, 2020

In Thousands of New Taiwan Dollars

		December 31, 2020 In Thousands of New Taiwan Dollars	December 31, 2020 In Thousands of New Taiwan Dollars
Attached table 6
Company Name	Related Party	Nature of Relationships	Ending balance of accounts receivable	Turnover rate	Overdue		Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
The Corporation	Tian Cin Energy Co., Ltd.	Investment using equity method	Accounts receivable 187,118 Contract assets98,952	3.19	－	－	－	－
The Corporation	Tian Chong Energy Co., Ltd.	Investment using equity method	Accounts receivable 1,302,731 Contract assets 505,111	2.77	－	－	－	－
The Corporation	Tian Peng Energy Co., Ltd.	Investment using equity method	Accounts receivable 1,258,296 Contract assets 429,356	2.51	－	－	583,973	－

～ 65 ～

Chung-Hsin Electric and Machinery Manufacturing Corp.

Names, locations, and related information of investees over which the company exercises significant influence (excluding information on investment in mainland china) For the Years Ended December 31, 2020

In Thousands of New Taiwan Dollars, except as otherwise indicated

Attached table 7-1
Investor	Investee	Location	Business	Original investment		Ending bala		nce	Profit (loss) of investee in this period	Investment profit/loss recognized in this period	Remark
				Ending balance	Beginning balance	Share	%	Book value
The Corporation	CHEM USA CORPORATION	USA	Selling and assembly of note book and computers	34,753	34,753	1,300,000	100.00%	55,856	375	375	Exchange differences on translating foreign operations$(2,937)	Subsidiary
	Guang-Hsin engineering & services Co., Ltd.	Taiwan	1. Telecommunication equipment wholesale, retail and installment 2. Communication engineering 3. Computer equipment installment 4. Information software service	33,120	33,120	5,678,623	24.29%	613,334	412,859	100,285	Unrealized gain of financial assets $270,428 Cash Dividend $(5,679)	－
	Sunrise investment Corp.	Taiwan	General investment	262,000	262,000	33,955,200	100.00%	290,016	17,939	17,939	Treated as treasury stock $(335,881) Unrealized gain of financial assets $183,609 Stock Dividend$77,552	Subsidiary
	CHENG-HSIN Engineering & Services CO.,LTD	Taiwan	1. Environmental protection incinerator set up and maintenance 2.Electric power and monitor equipment 3. Plan, design and maintenance for electricity, water and fire fighting system of building and factory	150,006	150,006	47,272,341	100.00%	544,957	66,278	66,278	Treated as treasury stock $(148,588) Unrealized gain of financial assets $81,224 Unrealized gains and losses of intercompany transactions $60,262 Recognize changes in subsidiary equity $5,761 Stock Dividend $91,187	Subsidiary
	Global-Entech Co., Ltd.	Taiwan	1. Air pollution sample testing 2. Waste water and environmental water testing 3. Noise testing 4. Evaluation of environmental affection	15,869	15,869	1,699,705	99.98%	25,937	1,716	1,716	Cash Dividend $(2,210)	Subsidiary
	Tone-zoom industry Co., Ltd.	Taiwan	1. Intensified fiber plastic material and product 2. Bathing equipment 3. Industrial plastic product	20,995	20,995	1,680,000	58.04%	52,504	(1,677)	(974)	－	Subsidiary
	Sheng-yuan investment Corp.	Taiwan	General investment	53,397	53,397	8,954,496	29.33%	616,752	178,221	52,278	Unrealized gain of financial assets $295,435 Cash Dividend $(12,903) Stock Dividend$3,527	－
	Etrovision technology Co., Ltd.	Taiwan	1. Electric equipment installment 2. Automatic control equipment 3. Communication engineering 4. TV-KU channel and C channel installment	115,006	50,006	8,000,598	99.99%	20,061	14,895	14,886	Cash capital increased $65,000	Subsidiary
	Chem Corp. Samoa	Samoa	Holding company	2,976,037	3,171,217	90,856,648	100.00%	2,065,010	101,095	101,095	Exchange differences on translating foreign operations $22,578 Unrealized gains and losses of intercompany transactions $(5,065) Refund from capital reduction$(195,180)	Subsidiary
	Bao-Sheng Global Co.,Ltd.	Taiwan	Manufacture machinery equipment, lift installation, automation control equipment, traffic mark and parking management, etc.	93,000	93,000	10,000,000	100.00%	159,250	63,112	63,112	－	Subsidiary

～ 66 ～

Chung-Hsin Electric and Machinery Manufacturing Corp.

Names, locations, and related information of investees over which the company exercises significant influence (excluding information on investment in mainland china) For the Years Ended December 31, 2020

In Thousands of New Taiwan Dollars, except as otherwise indicated

Attached table 7-2
Investor	Investee	Location	Business	Original investment		Ending bala		nce	Profit (loss) of investee in this period	Investment profit/loss recognized in this period	Remark
				Ending balance	Beginning balance	Share	%	Book value
	Li-Xiang Technology Co., Ltd	Taiwan	Import and export trade about Rail industry, electronic control system, slope away from the coatingliquid	6,670	6,670	667,000	40.00%	－	(5,899)	(2,360)	Credit balance of Investment under equity method $3,561	－
	Fumei Development Co., Ltd.	Taiwan	Rent and selling buildings, real estate and so on.	－	140,256	－	－	－	20,811	9,365	Refund from capital reduction $(112,500) Cash Dividend $(20,344) Disposal forthe period $(22,431)	－
	Nomura Chung-Hsin MachineryCorporation	Taiwan	Manufacture machinery, other equipment and internation trade	20,874	20,874	2,087,400	49.00%	－	(10,889)	(5,335)	Credit balance of Investment under equity method$12,435	－
	FinData Technology Corp.	Taiwan	Software Design Services, Data Processing Services, Digital Information SupplyServices	60,000	60,000	2,000,000	100.00%	－	(11,223)	(11,223)	Credit balance of Investment under equity method $52,449	Subsidiary
	ME ENERGY SYSTEMS LIMITED	Hong Kong	Power EQU, engineering & parking management services	243,613	213,992	7,900,000	100.00%	133,582	(3,861)	(3,861)	Invest for the period $29,621 Exchange differences on translating foreign operations $(13,517) FVTOCI financial assets $(54,705) Unrealized gains and losses of intercompanytransactions$(1,229)	Subsidiary
	Chung- Hsin Energy Tech. Inc.	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and fuel cells; energy technology services.	5,000	5,000	500,000	100.00%	4,821	(155)	(155)	－	Subsidiary
	Tian Cin Energy Co., Ltd.	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services.	209,467	500	20,946,720	86.46%	146,268	(3,829)	(1,958)	Cash capital increased $208,967 Unrealized gains and losses of intercompany transactions $(58,614) Did not participate in the cash increase based on the shareholdingratio$(1,444)	Subsidiary
	Tian Peng Energy Co., Ltd.	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services.	674,245	500	67,424,520	85.32%	346,271	(5,340)	(3,587)	Cash capital increased $673,745 Unrealized gains and losses of intercompany transactions $(319,555) Did not participate in the cash increase based on the shareholdingratio$(1,054)	Subsidiary
	Tian Chong Energy Co., Ltd.	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services.	928,288	500	92,828,760	85.99%	532,979	(10,784)	(6,917)	Cash capital increased $927,788 Unrealized gains and losses of intercompany transactions $(379,827) Did not participate in the cash increase based on the shareholdingratio$(2,703)	Subsidiary
	Tian Fu Energy Co., Ltd. (Tian Fu)	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energytechnologyservices.	156,000	－	15,600,000	52.42%	154,890	(6,462)	(872)	Invest for the period $156,000 Recognize changes in subsidiary equity $(238)	Subsidiary

～ 67 ～

Chung-Hsin Electric and Machinery Manufacturing Corp.

Names, locations, and related information of investees over which the company exercises significant influence (excluding information on investment in mainland china) For the Years Ended December 31, 2020

In Thousands of New Taiwan Dollars, except as otherwise indicated

				For the Years Ended December 31, 2020 In Thousands of New Taiwan Dollars, except as otherwise indicated	For the Years Ended December 31, 2020 In Thousands of New Taiwan Dollars, except as otherwise indicated	For the Years Ended December 31, 2020 In Thousands of New Taiwan Dollars, except as otherwise indicated	For the Years Ended December 31, 2020 In Thousands of New Taiwan Dollars, except as otherwise indicated
Attached table 7-3
Investor	Investee	Location	Business	Original investment		Ending balance			Profit (loss) of investee in this period	Investment profit/loss recognized in this period	Remark
				Ending balance	Beginning balance	Share	%	Book value
CHENG-HSIN Engineering & Services CO.,LTD	San-feng construction Co., Ltd.	Taiwan	Civil engineering, construction, water conservancy, contract management industry	411,939	211,939	53,200,000	100.00%	558,377	1,392	Note1	Cash capital increased $200,000 Stock Dividend $32,000	Subsidiary
	Wha Dun Building Management Service Co., Ltd.	Taiwan	Apartment managing services and consulting, etc.	10,000	10,000	1,652,632	100.00%	25,132	7,878	Note1	Stock Dividend $3,166	Subsidiary
	Accumis System Technologies Inc.	Taiwan	Optical and precision equipment manufacturing and software informationservices	－	15,930	－	100.00%	－	(99)	Note1	Liquidated for the period	－
San-feng construction Co., Ltd.	Tian Fu Energy Co., Ltd. (Tian Fu)	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services.	490,000	－	14,160,000	47.58%	490,388	(6,462)	Note1	Invest for the period $490,000	－
Tian Fu Energy Co., Ltd. (Tian Fu)	Tian Cin Energy Co., Ltd.	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services.	32,134	490	3,213,420	13.26%	31,585	(3,829)	Note1	Cash capital increased $31,644	－
	Tian Peng Energy Co., Ltd.	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services.	113,690	490	11,368,980	14.39%	112,912	(5,340)	Note1	Cash capital increased $113,200	－
	Tian Chong Energy Co., Ltd.	Taiwan	Manufacturing machinery for generating, transmitting and distributing electric power and energy technology services.	148,176	490	14,817,600	13.73%	146,613	(10,784)	Note1	Cash capital increased $147,686	－
Sunrise investment Corp.	U.S.Technical Consultants Inc.	USA	Aerospace Equipment Manufacturing	22	22	5,310	22.27%	－	(15,719)	－	Accumulated Impairment loss $(22)	－
CHEM Corp.	CHEM Power Corp.	Samoa	Holdingcompany	349,434	349,434	US 10,742,824.04	100.00%	105,527	(920)	Note1	－	Subsidiary
	CHEM J-V Limited	HongKong	Holdingcompany	382,936	382,936	US 12,644,500.00	100.00%	316,837	(35,717)	Note1	Cash Dividend $(37,950)	Subsidiary
	CHEM Power Limited	Hong Kong	Holding company	2,570,519	2,570,519	US 78,224,615.70	100.00%	1,642,367	109,499	Note1	－	Subsidiary
H2 Power Tech, Inc.	H2 Power Tech, LLC.	USA	Technical services, licensing and equipment sales	15,100	15,100	US 500,000.00	100.00%	18,577	9,128	Note1	－	Subsidiary
CHEMJ-VLimited	MICT international Ltd.	HongKong	Holding company	48,308	48,308	3,600,000	40.00%	26,688	(23,833)	Note1	－	－
ME ENERGY SYSTEMS LIMITED	H2 Power Tech, INC.	USA	Holding company	3,564	3,564	50	100.00%	18,577	9,128	Note1	－	Subsidiary
	EGME ENERGY ECOSYSTEMS (INDIA) PRIVATE LIMITED	India	To promote, own, acquire, erect, construct, establish, maintain, improve, manage, devise, develop, manufacture, install, commission, alter, carry on, control, take on backup power services, fuel cells equipment projects, telecom towers or other facilities of generation back power services of green energy and their sales and distribution	6,401	6,401	US 205,527.15	99.99%	687	(1,322)	Note1	－	Subsidiary
	CHEM FUEL CELL (M) SDN.BHD.	Malaysia	To promote Fuel cells, Micro grid and their sales	6,253	6,253	824,002	100.00%	3,535	(1,377)	Note1	－	Subsidiary
	CHEM ME ENERGY SYSTEMS HOLDINGS (PTY) Ltd.	South Africa	Holding company for manufacturing, sales and service related to fuel cell generators and other generation and energy storage systems.	45,815	45,815	2,000 (US 1,500,000)	100.00%	28,522	(10,172)	Note1	－	Subsidiary
CHEM ME ENERGY SYSTEMS HOLDINGS (PTY) Ltd.	CHEM ENERGY SA (PTY) LTD.	South Africa	Manufacturing and Sales of fuel generators, battery charging services, power generating services, fuel service and parts and maintenance thereof.	45,815	21,429	13,000 (US 1,500,000)	100.00%	28,501	(10,310)	Note1	Invest for the period $24,386	Subsidiary

Note 1 ： The share of profits/losses of the investee company is not reflected herein as such amount is already included in the share of profits/losses of the investor company.

～ 68 ～

Chung-Hsin Electric and Machinery Manufacturing Corp. Information of investment in mainland China For the Years Ended December 31, 2020

In Thousands of New Taiwan Dollars, except as otherwise indicated

Attached table 8	Attached table 8
Investee	Main businesses	Total paid-in capital	Method of investment (1)	Accumulated outflow of investment from Taiwan as of beginning balance	Investment flows		Accumulated outflow of investment from Taiwan as of ending balance	Net Income (Losses) of the Investee Company	Percentage of ownership	Investment profit (loss) of this period recognized (2)	Book value	Accumulated inward remittance of Earnings as of ending balance
					Outflow	In flow
Chem-tech (Shang-hai) Corp.	Importing and exporting trading	174,178 (US 5,400,000)	(b)	130,662 (US 4,125,220.53)	－	－	130,662 (US 4,125,220.53)	(420) US (14,188.61)	100.00%	(420) US (14,188.61)	12,644 US 443,950.03	－
Zhen xing parkig management Co., Ltd.	Parking affair management	39,145 (US 1,238,487.94)	(c)	－	－	－	－	(13) US (420.29)	－	(13) US (420.29)	－	Liquidated for the period
Chemly Power equipment Corp.	Manufacturing machinery for generating, Transmitting and distributing electric power	318,310 (US 9,800,000)	(b)	318,310 (US 9,799,284.34)	－	－	318,310 (US 9,799,284.34)	(920) US (31,091.76)	100.00%	(920) US (31,091.76)	105,527 US 3,705,310.53	－
Wuxi Hengchi Chem Switchgear Co., Ltd.	GIS assembly and manufacturing	185,963 (US 5,575,982.58)	(b)	81,329 (US 2,403,148.34)	－	－	81,329 (US 2,403,148.34)	9,644 US 326,046.90	45.00%	4,340 US 146,721.11	38,096 US 1,337,648.09	－
Jiangsu Chung-Hsin Precision Machinery Co., Ltd.	Aluminum alloy tank, tube and accessories manufacturing and casting	950,804 (US 29,268,000)	(b)	966,640 (US 29,750,000)	－	－	966,640 (US 29,750,000)	47,759 US 1,614,562.96	99.17%	47,361 US 1,601,111.74	908,249 US 31,890,752.88	－
Shannxi baoji Yong-shin Ltd.	Aluminum alloy tank, tube and accessories manufacturing and casting	10,694 (US 326,130.09)	(b)	6,979 (US 213,000)	－	－	6,979 (US 213,000)	334 US 11,274.90	69.12%	231 US 7,793.21	16,691 US 586,048.07	－
Nantong L-S metal forming Co., Ltd.	Aluminum Alloy tank, tube and accessories manufacturing and casting	113,889 (US 3,630,200)	(b)	14,982 (US 453,800)	－	－	14,982 (US 453,800)	107,825 US 3,645,195.56	25.00%	26,956 US 911,298.89	142,255 US 4,994,885.44	－
Toko electric (Suzhou) Co., Ltd.	Manufacturing and selling potential transformer	183,154 (US 5,520,000)	(b)	33,523 (US 1,048,000)	－	－	33,523 (US 1,048,000)	－	18.99%	－	26,206 US 865,457.10	Evaluated by FVTPL - noncurrent
Chung-Hsin Power Systems Corp.	220kv~550kv high voltage GIS/GCB assembly and manufacturing	598,772 (US 18,000,000)	(b)	598,772 (US 18,000,000)	－	－	598,772 (US 18,000,000)	40,310 US 1,362,748.15	100.00%	40,310 US 1,362,748.15	264,348 US 9,281,867.74	－
Chung-Hsin Power Systems (Shenyang) Inc.	Manufacturing and selling high voltage GIS/GCB, aluminum casting and related equipments.	596,455 (US 18,000,000)	(b)	487,636 (US 14,679,315.53) (4)	－	－	487,636 (US 14,679,315.53) (4)	928 US 31,369.52	100.00%	928 US 31,369.52	54,467 US 1,912,449.22	－
Nantong Shengyi precision machinery Co.	Processing tank, conductors and various machinery parts	331,907 (US 10,000,000)	(b)	165,755 (US 5,000,000)	－	－	165,755 (US 5,000,000)	48,553 US 1,641,427.08	50.00%	24,277 US 820,713.54	196,847 US 6,911,754.20	－
Hitachi (Suzhou) EHV Switchgear Corp	69KV-1100KV kv high voltage switch board, assembly and manufacturing	633,000 (US 20,000,000)	(b)	16,455 (US 500,000)	－	－	16,455 (US 500,000)	－	2.50%	－	－	Reclassified as held for sale for the period
San-he Kwok Shui Electric Co.	Manufacturing machinery for generating, Transmitting and distributing electric power	92,695 (US 2,950,485.95)	(b)	45,221 (US 1,435,539.87)	－	－	45,221 (US 1,435,539.87)	(4,803) US (162,375.27)	49.00%	(2,353) US (79,563.88)	33,398 US 1,172,677.14	－
Jiangsu Fumei Landscape & Real Estate Development Co., Ltd.	Resort development and management	296,700 (US 10,000,000)	(b)	296,700 (US 10,000,000)	－	－	296,700 (US 10,000,000)	(37,392) US (1,264,109.23)	100.00%	(37,392) US (1,264,109.23)	44,791 US 1,572,708.74	－
Shenzhen Wu You Chou Technology Services Ltd.	Development, pushing, service and Consultant on software or hardware of computer business	34,901 (US 1,090,668)	(c)	－	－	－	－	1 US 42.56	－	－	－	Liquidated for the period
Integrated Manufacturing & Services Co., Ltd.	Development of special equipment for solar cell production, manufacture of optical engine, lighting source, projection screen, high definition projection cathode-ray tube and micro display module, and production, cleaning and regeneration of new electrical device	215,740 (US 7,000,000)	(c)	－	－	－	－	(23,823) US (805,363.69)	40.00%	(9,529) US (322,145.48)	24,773 US 869,830.86	－
Shanghai Shunhua New Energy System Co., Ltd.	R & D and sales of on-board hydrogen supply systems for fuel cell vehicles and hydrogen supply basic equipment, design, construction and operation services of hydrogen refueling stations.	274,071 (US 9,623,274.41) (5)	(b)	－	161,116 (US 5,371,416)	－	161,116 (US 5,371,416)	－	6.62%	－	98,273 US 3,450,588.20	Evaluated by FVTOCI - noncurrent

～ 69 ～

Accumulated investment in China as of Investment amounts authorized by investment Upper limit on investment authorized by	Accumulated investment in China as of Investment amounts authorized by investment Upper limit on investment authorized by
December 31,2020 commission,MOEA	investment commission,MOEA(3)
3,341,264 (US$103,291,790.82) 3,640,623 (US$ 112,608,296.58)	6,390,176
(1) Methods of investment:	(2)Investment profit and loss were recognized based on the audited financial statements of each reportable entity.
(a) Remit through third area to invest in China.	(3)Calculated based on 60% of net equity value of	the Corporation as of December 31, 2020.
(b) Through the company set up in third area and then reinvest in China.	(4)The Corporation used US$3,600,000 as professional technology fee to invest in Chung-Hsin Power Systems
(c) Through investment to set up company then invest in China.	(shengyang) Inc. indirectly and owned 100.00% of the investee’s shares.
(d) Other method.	(5)Converted at the exchange rate on December 31, 2020.

～ 70 ～

Chung-Hsin Electric and Machinery Manufacturing Corp. INFORMATION ON MAJOR SHAREHOLDERS December 31, 2020

Attached table 9
Shareholders	Shares
	Total Shares Owned (In Thousands)	Ownership Percentage (%)
Sheng Yuan investment Corp.	35,195	7.39
Guang-Hsin engineering & services Co., Ltd.	24,815	5.21

• Note 1: The main shareholder information in this table is calculated by the Taiwan Depository & Clearing Corporation on the last business day at the end of each quarter, and the total number of ordinary shares and special shares held by the shareholders who have completed the delivery of the company non-physical registration (including treasury shares) is more than 5%. As for the share capital recorded in the Corporation’s financial report and the number of shares actually delivered by the Corporation non-physical registration, may be different due to the calculation basis different.

• Note 2: The above information, if the shareholder delivers the shareholding to the trust, it will be disclosed by the individual trustee who opened the trust account. As for shareholders’ declaration of insider shareholdings that hold more than 10% of their shares in accordance with the Securities Exchange Act, their shareholdings include their shareholdings plus their delivery of trusts and shares that have the right to make decisions on trust property. Please refer to Market Observation Post System website for information on insider equity declaration.

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