CPE — Audit Report / Information 2021

Dec 30, 2021

CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REPORT DECEMBER 31, 2021 AND 2020

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For the convenience of readers and for information purpose only, 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. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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Representation Letter

In connection with the Consolidated Financial Statements of Affiliated Enterprises of CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. and subsidiaries (the “Consolidated FS of the Affiliates”), we represent to you that, the entities required to be included in the Consolidated FS of the Affiliates as of and for the year ended December 31, 2021 in accordance with the “Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises” are the same as those required to be included in the Consolidated Financial Statements of CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. and subsidiaries (the “Consolidated FS of the Group”) in accordance with International Financial Reporting Standards 10, as well as that, the information required to be disclosed in the Consolidated FS of Affiliates is disclosed in the Consolidated FS of the Group. Consequently, CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. and subsidiaries did not prepare a separate set of Consolidated FS of Affiliates.

Very truly yours,

CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. and subsidiaries By

Cheng, Wu Yeh, Chairman March 28, 2022

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INDEPENDENT AUDITORS’ REPORT

To the Board of Directors and Shareholders of Charoen Pokphand Enterprise (Taiwan) Co., Ltd.

Opinion

We have audited the accompanying consolidated balance sheets of Charoen Pokphand Enterprise (Taiwan) Co., Ltd. and its subsidiaries (the “Group”) as at December 31, 2021 and 2020, and the related consolidated statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as at December 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission.

Basis for opinion

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

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資誠聯合會計師事務所 PricewaterhouseCoopers, Taiwan 11012 臺北市信義區基隆路一段 333 號 27 樓 27F, No. 333, Sec. 1, Keelung Rd., Xinyi Dist., Taipei 11012, Taiwan T: +886 (2) 2729 6666, F:+ 886 (2) 2729 6686, www.pwc.tw

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Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the Group’s 2021 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole and, in forming our opinion thereon, we do not provide a separate opinion on these matters.

Key audit matters for the Group’s 2021 consolidated financial statements are stated as follows:

Evaluation of net realisable value of inventories

Description

Refer to Note 4(13) for accounting policies adopted for the valuation of inventories, Note 5(2) for uncertainty of accounting estimates and assumptions of valuation of inventories, and Note 6(4) for details of inventories. As at December 31, 2021, the carrying amount of inventories and allowance for inventory valuation losses amounted to NT$1,888,860 thousand and NT$11,634 thousand, respectively.

The main activities of the Group are the manufacturing and sales of animal feeds, fresh and processed meat products. As the market prices are affected by changes in macro-economic environment, there is a higher risk of inventory valuation losses. In addition, the evaluation of net realisable value of inventories is subject to management’s judgement, and considering that feeds, fresh and processed meat products comprise most of the Group’s inventories which is significant to the financial statements, the evaluation of net realisable value of inventories was identified as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures in respect of the above key audit matter:

1. Based on our understanding of the Group’s operations and related industry, assessed the reasonableness of related policies and procedures applied to the net realisable value of inventories, and ascertained the consistent application.

2. Obtained statements of net realisable value of inventories as at the balance sheet date, validated source data of merchandise prices and recalculated the provision for inventory valuation losses in order to confirm consistent application of respective procedures and policies.

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Measurement of biological assets

Description

Refer to Note 4(15) for accounting policies adopted for biological assets, Note 5(2) for uncertainty of accounting estimates and assumptions in measuring fair value of biological assets, and Note 6(5) for details of biological assets. As at December 31, 2021, the carrying amount of biological assets amounted to NT$2,059,679 thousand.

The Group’s biological assets is mainly comprised of broiler chicken, breeder chicken, fattening swine and breeder swine, etc. Except when the fair value cannot be reliably measured, biological assets should be measured at fair value less costs to sell on initial recognition and at the end of each reporting period. As the market prices of fresh, processed meat, livestock and poultry are affected by animal epidemic and market demand in Taiwan, biological assets with active market prices have a higher risk of fluctuations in fair value. Since the amount of biological assets is significant to the financial statements and the methods adopted in measuring each category of biological assets, market prices applied and items accounted for as costs to sell are all subject to management’s judgement and with high uncertainty, the measurement of biological assets was identified as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures in respect of the above key audit matter:

1. Based on our understanding of the Group’s operations and related industry, assessed the reasonableness of related policies and procedures applied in measuring biological assets, and ascertained the consistent application.

2. As at the balance sheet date, ascertained that all the active market prices information are available and reliable for biological assets measured at fair value less costs to sell. Also, validated source data of active market prices and the reasonableness of the major components of costs to sell.

Other matter – Parent company only financial reports

We have audited and expressed an unqualified opinion on the parent company only financial statements of Charoen Pokphand Enterprise (Taiwan) Co., Ltd. as at and for the years ended December 31, 2021 and 2020.

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Responsibilities of management and those charged with governance for the consolidated financial statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the Financial Supervisory Commission, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

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

Auditors’ responsibilities for the audit of the consolidated financial statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a 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 generally accepted auditing standards in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

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

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of

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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 controls.

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

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

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

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

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

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 controls that we identify during our audit.

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current period and are therefore the key audit matters. We describe these matters in our 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.

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Lin, Yi-Fan
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Liao, Fu-Ming Lin, Yi-Fan For and on Behalf of PricewaterhouseCoopers, Taiwan March 28, 2022

------------------------------------------------------------------------------------------------------------------------------------------------The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

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CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

ASSETS	Notes 6(1) 6(3) 7 6(3) 7 6(4) 6(5) 7 6(1) and 8 6(2) 6(7) 6(8) and 8 6(9) 6(10) 6(5) 6(27) 6(1)	December 31, 2021 AMOUNT % $ 187,008 1 416,032 2 3,951 - 2,370,841 10 55,707 - 18,665 - 6,284 - 1,877,226 8 1,614,838 7 407,566 2 9,650 - 6,967,768 30 2,575,015 11 100,160 - 12,471,603 54 371,480 2 3,530 - 444,841 2 121,044 - 122,031 1 16,209,704 70 $ 23,177,472 100	December 31, 2020	December 31, 2020
		AMOUNT $ 187,008 416,032 3,951 2,370,841 55,707 18,665 6,284 1,877,226 1,614,838 407,566 9,650 6,967,768 2,575,015 100,160 12,471,603 371,480 3,530 444,841 121,044 122,031 16,209,704 $ 23,177,472	AMOUNT $ 247,679 280,767 - 1,903,391 - 13,495 - 1,316,392 1,434,043 444,931 47,934 5,688,632 1,925,872 99,880 10,896,118 345,915 174 399,112 82,496 108,150 13,857,717 $ 19,546,349	%
Current assets 1100 Cash and cash equivalents 1150 Notes receivable, net 1160 Notes receivable - related parties 1170 Accounts receivable, net 1180 Accounts receivable - related parties 1200 Other receivables 1220 Current income tax assets 130X Inventories, net 1400 Biological assets - current 1410 Prepayments 1470 Other current assets 11XX Total current assets Non-current assets 1517 Non-current financial assets at fair value through other comprehensive income 1550 Investments accounted for using equity method 1600 Property, plant and equipment, net 1755 Right-of-use assets 1780 Intangible assets 1830 Biological assets - non-current 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets				1 2 - 10 - - - 7 7 2 -
				29
				10 - 56 2 - 2 - 1
				71
				100

(Continued)

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CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

LIABILITIES AND EQUITY	Notes 6(11) 6(12) 7 7 6(13) 7 6(14) and 8 6(14) and 8 6(27) 6(15) 6(16) 6(17) 6(18) 9 11	December 31, 2021 AMOUNT % $ 3,301,031 14 1,039,203 4 504,775 2 10,673 - 850,500 4 21,893 - 810,907 4 26,771 - 170,971 1 31,158 - 239,750 1 7,007,632 30 7,129,750 31 29,802 - 314,024 1 103,257 1 7,576,833 33 14,584,465 63 2,679,910 12 4,666 - 1,044,641 5 3,332,757 14 1,067,118 4 8,129,092 35 463,915 2 8,593,007 37 $ 23,177,472 100	December 31, 2020	December 31, 2020
		AMOUNT $ 3,301,031 1,039,203 504,775 10,673 850,500 21,893 810,907 26,771 170,971 31,158 239,750 7,007,632 7,129,750 29,802 314,024 103,257 7,576,833 14,584,465 2,679,910 4,666 1,044,641 3,332,757 1,067,118 8,129,092 463,915 8,593,007 $ 23,177,472	AMOUNT $ 2,659,715 599,426 600,078 - 746,284 1,273 738,247 7,348 249,670 24,816 213,250 5,840,107 4,515,250 19,351 296,281 141,874 4,972,756 10,812,863 2,679,910 3,957 880,252 3,332,669 1,408,198 8,304,986 428,500 8,733,486 $ 19,546,349	%
Current liabilities 2100 Short-term borrowings 2110 Short-term notes and bills payable 2150 Notes payable 2160 Notes payable - related parties 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2220 Other payables - related parties 2230 Current income tax liabilities 2280 Current lease liabilities 2320 Long-term liabilities, current portion 21XX Total current liabilities Non-current liabilities 2540 Long-term borrowings 2570 Deferred income tax liabilities 2580 Non-current lease liabilities 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity attributable to owners of parent Share capital 3110 Common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 31XX Equity attributable to owners of the parent 36XX Non-controlling interest 3XXX Total equity Significant contingent liabilities and unrecognised contract commitments Significant events after the balance sheet date 3X2X Total liabilities and equity				14 3 3 - 4 - 4 - 1 - 1
				30
				23 - 1 1
				25
				55
				14 - 5 17 7
				43
				2
				45
				100

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

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CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts)

Items

Year ended December 31 2021 2020 Notes AMOUNT % AMOUNT % 6(19) and 7 $ 24,841,345 100 $ 22,189,635 100 6(4)(25)(26) and 7( 21,441,119) ( 87) ( 18,664,912) ( 84) 3,400,226 13 3,524,723 16 6(25)(26) and 7 ( 1,067,159) ( 4) ( 998,409) ( 5) ( 719,783) ( 3) ( 649,031) ( 3) 12(2) ( 9,006) - ( 5,528) - ( 1,795,948) ( 7) ( 1,652,968) ( 8) 6(5)(20) ( 12,738) - 26,843 - 1,591,540 6 1,898,598 8 6(21) 359 - 902 - 6(22) and 7 88,904 - 65,806 - 6(23) and 7 45,705 - 160,802 1 6(24) ( 82,038) - ( 76,789) - 6(7) 280 - ( 120) - 53,210 - 150,601 1 1,644,750 6 2,049,199 9 6(27) ( 331,093) ( 1) ( 407,073) ( 2) 1,313,657 5 1,642,126 7 6(6) - - ( 2,250) - $ 1,313,657 5 $ 1,639,876 7

4000 Operating revenue 5000 Operating costs 5950 Net operating margin Operating expenses 6100 Selling and marketing expenses 6200 General and administrative expenses 6450 Expected credit impairment loss 6000 Total operating expenses 6500 Other income and expenses, net 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7060 Share of profit (loss) of associates and joint ventures accounted for using equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8000 Profit for the year from continuing operations 8100 Loss from discontinued operations 8200 Profit for the year

(Continued)

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CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts)

Items

Year ended December 31 2021 2020 Notes AMOUNT % AMOUNT % 6(15) $ 19,705 - ($ 16,311) - 6(2) ( 316,380) ( 1) ( 75,598) - 6(27) 7,650 - 3,262 - ( 289,025) ( 1) ( 88,647) - ( 36,291) - ( 115,784) ( 1) ( 36,291) - ( 115,784) ( 1) ($ 325,316) ( 1) ($ 204,431) ( 1) $ 988,341 4 $ 1,435,445 6 $ 1,355,652 5 $ 1,657,082 7 ( 41,995) - ( 17,206) - $ 1,313,657 5 $ 1,639,876 7 $ 1,029,939 4 $ 1,452,798 6 ( 41,598) - ( 17,353) - $ 988,341 4 $ 1,435,445 6 6(28) $ 5.06 $ 6.19 - ( 0.01) $ 5.06 $ 6.18 $ 5.05 $ 6.18 - ( 0.01) $ 5.05 $ 6.17

Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss 8311 Other comprehensive income, before tax, actuarial gains (losses) on defined benefit plans 8316 Unrealised gain or loss on financial assets at fair value through other comprehensive income 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss 8310 Other comprehensive loss that will not be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8361 Currency translation differences of foreign operations 8360 Other comprehensive loss that will be reclassified to profit or loss 8300 Total other comprehensive loss for the year 8500 Total comprehensive income for the year Profit (loss) attributable to: 8610 Owners of the parent 8620 Non-controlling interest Comprehensive income (loss) attributable to: 8710 Owners of the parent 8720 Non-controlling interest Earnings per share (in dollars) 9710 Basic earnings per share from continuing operations 9720 Basic loss per share from discontinued operations 9750 Total basic earnings per share 9810 Diluted earnings per share from continuing operations 9820 Diluted loss per share from discontinued operations 9850 Total diluted earnings per share

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

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CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

2020 Balance at January 1, 2020 Profit for the year Other comprehensive loss Total comprehensive income (loss) Appropriations of 2019 earnings Legal reserve Cash dividends to shareholders Capital surplus - dividends not received by shareholders Cash dividends to non-controlling interest Change in ownership interests in subsidiaries Cash receipt from non-controlling interest of a subsidiary through capital increase in cash Change in non-controlling interests Balance at December 31, 2020 2021 Balance at January 1, 2021 Profit for the year Other comprehensive income (loss) Total comprehensive income (loss) Appropriations of 2020 earnings Legal reserve Cash dividends to shareholders Capital surplus - dividends not received by shareholders Change in ownership interests in subsidiaries Cash receipt from non-controlling interest of a subsidiary through capital increase in cash Change in non-controlling interests Balance at December 31, 2021	Notes					Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent	Equity attributable to owners of the parent				Non-controlling interest		Total equity
			Share capital - common stock	Capital surplus		Retained Earnings			Other Equity Interest			Total
						Legal reserve		Unappropriated retained earnings	Financial statements translation differences of foreign operations	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
	6(18) 6(18)		$ 2,679,910 - - - - - - - - - - $ 2,679,910 $ 2,679,910 - - - - - - - - - $ 2,679,910	$ 2,137 - - - - - 591 - 1,229 - - $ 3,957 $ 3,957 - - - - - 1,161 ( 452 ) - - $ 4,666		$ 733,781 - - - 146,471 - - - - - - $ 880,252 $ 880,252 - - - 164,389 - - - - - $ 1,044,641	$ 2,907,219 1,657,082 ( 13,197 ) 1,643,885 ( 146,471 ) ( 1,071,964 ) - - - - - $ 3,332,669 $ 3,332,669 1,355,652 15,367 1,371,019 ( 164,389 ) ( 1,205,959 ) - ( 583 ) - - $ 3,332,757		($ 17,432 ) - ( 115,489 ) ( 115,489 ) - - - - - - - ($ 132,921 ) ($ 132,921 ) - ( 36,291 ) ( 36,291 ) - - - - - - ($ 169,212 )	$ 1,616,717 - ( 75,598 ) ( 75,598 ) - - - - - - - $ 1,541,119 $ 1,541,119 - ( 304,789 ) ( 304,789 ) - - - - - - $ 1,236,330	$ 7,922,332 1,657,082 ( 204,284 ) 1,452,798 - ( 1,071,964 ) 591 - 1,229 - - $ 8,304,986 $ 8,304,986 1,355,652 ( 325,713 ) 1,029,939 - ( 1,205,959 ) 1,161 ( 1,035 ) - - $ 8,129,092		$ 704,662 ( 17,206 ) ( 147 ) ( 17,353 ) - - - ( 332,670 ) ( 1,229 ) 138,000 ( 62,910 ) $ 428,500 $ 428,500 ( 41,995 ) 397 ( 41,598 ) - - - 1,035 98,000 ( 22,022 ) $ 463,915		$ 8,626,994 1,639,876 ( 204,431 ) 1,435,445 - ( 1,071,964 ) 591 ( 332,670 ) - 138,000 ( 62,910 ) $ 8,733,486 $ 8,733,486 1,313,657 ( 325,316 ) 988,341 - ( 1,205,959 ) 1,161 - 98,000 ( 22,022 ) $ 8,593,007

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

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CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit from continuing operations before tax Loss from discontinued operations before tax Profit before tax Adjustments Adjustments to reconcile profit (loss) Expected credit impairment loss Depreciation Depreciation of right-of-use assets Amortization Interest income Interest expense Dividend income Gain on reversal of loss on inventory market price decline Change in fair value less cost to sell of biological assets Investment (income) loss recognised using equity method Loss (gain) on disposal of property, plant and equipment Gain arising from lease modifications Impairment loss of non-financial assets Gain on disposal of investment Gain on financial assets at fair value through other comprehensive income Changes in operating assets and liabilities Changes in operating assets Notes receivable Notes receivable - related parties Accounts receivable Accounts receivable - related parties Other receivables Other receivables - related parties Inventories Biological assets Prepayments Changes in operating liabilities Notes payable Notes payable - related parties Accounts payable Accounts payable - related parties Other payables Other payables - related parties Net defined benefit liability Cash inflow generated from operations Cash paid for income tax Refund of income tax Net cash flows from operating activities

YearendedDecember 31 Notes 2021 2020 $ 1,644,750 $ 2,049,199 - ( 3,000 ) 1,644,750 2,046,199 12(2) 9,006 5,528 6(8)(25) 752,396 686,549 6(9)(25) 50,473 43,566 6(25) 4,551 4,137 6(21) ( 359 ) ( 1,159 ) 6(24) 82,038 76,789 6(2)(22) ( 82,101 ) ( 57,589 ) 6(4) ( 127 ) ( 49,248 ) 6(5)(20) 12,738 ( 26,843 ) 6(7) ( 280 ) 120 6(23) 3,088 ( 13,846 ) - ( 2 ) 6(10)(23) - 13,331 6(6)(23) - ( 84,145 ) 6(23) ( 888 ) - ( 135,265 ) 35,433 ( 3,951 ) - ( 476,456 ) ( 86,300 ) ( 55,707 ) ( 11,913 ) ( 5,170 ) ( 10,658 ) - ( 2,813 ) ( 560,707 ) 242,543 ( 239,262 ) ( 123,225 ) 37,160 ( 125,208 ) ( 95,303 ) 126,165 10,673 - 104,216 94,812 20,620 ( 58,908 ) 59,156 37,295 19,423 ( 15,402 ) ( 18,912 ) ( 19,154 ) 1,135,800 2,726,054 ( 442,837 ) ( 334,408 ) 6,314 - 699,277 2,391,646

(Continued)

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CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Acquisition of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of investments accounted for using equity method Decrease (increase) in other current assets Acquisition of financial assets at fair value through other comprehensive income Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets Increase in other non-current assets Cash receipt of interest Cash receipt of dividends Loss of control in subsidiaries Proceeds from disposal of subsidiaries Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Increase in short-term borrowings Increase (decrease) in short-term notes and bills payable Proceeds from long-term borrowings Payment of long-term borrowings Payment of lease liabilities Cash payment for interest Cash dividends paid Cash receipt from non-controlling interest of a subsidiary through capital increase establishment Cash dividends paid to non-controlling interest Capital surplus - dividends not received by shareholders Net cash flows from financing activities Effects of changes in foreign exchange rate Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

YearendedDecember 31 Notes 2021 2020 ($ 138,653 ) $ - 139,541 - - ( 100,000 ) 38,284 ( 40,234 ) ( 999,544 ) - 6(29) ( 2,326,005 ) ( 2,816,141 ) 6,960 40,007 6(10) ( 4,089 ) ( 83 ) ( 17,699 ) ( 15,108 ) 359 1,295 6(2)(22) 82,101 57,589 - ( 257,374 ) 6(6) - 246,654 ( 3,218,745 ) ( 2,883,395 ) 641,316 316,227 439,777 ( 379,233 ) 7,684,250 6,364,000 ( 5,043,250 ) ( 5,325,250 ) 6(9) ( 51,953 ) ( 53,615 ) ( 80,255 ) ( 76,182 ) 6(18) ( 1,205,959 ) ( 1,071,964 ) 98,000 138,000 ( 22,022 ) ( 332,670 ) 1,161 591 2,461,065 ( 420,096 ) ( 2,268 ) ( 13,225 ) ( 60,671 ) ( 925,070 ) 6(1) 247,679 1,172,749 6(1) $ 187,008 $ 247,679

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

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CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

1. HISTORY AND ORGANISATION

Charoen Pokphand Enterprise (Taiwan) Co., Ltd. (the “Company”) was incorporated on August 22, 1977 as a company limited by shares under the Statute for Investment by Overseas Chinese and the provisions of the Company Act of the Republic of China. The main activities of the Company and its subsidiaries (collectively referred herein as the “Group”) are the manufacture and sale of animal feeds, livestock, chicken and processed meat products. The Company’s common stock has been traded on the Taiwan Stock Exchange since July 27, 1987. Charoen Pokphand Foods Public Company Limited (“CPF”), which was incorporated in Thailand, indirectly holds 39% equity interest in the Company.

2. THE DATE OF AUTHORISATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL STATEMENTS AND PROCEDURES FOR AUTHORISATION

These consolidated financial statements were authorised for issuance by the Board of Directors on March 28, 2022.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC effective from 2021 are as follows:

New Standards,Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 4, ‘Extension of the temporary exemption from applying IFRS 9’ Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘Interest Rate Benchmark Reform— Phase 2’ Amendment to IFRS 16, ‘Covid-19-related rent concessions beyond 30 June 2021’	January 1, 2021 January 1, 2021 April 1, 2021 (Note)

Note: Earlier application from January 1, 2021 is allowed by the FSC.

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

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(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2022 are as follows:

	Effective date by
	International Accounting
New Standards, Interpretations and Amendments	Standards Board
Amendments to IFRS 3, ‘Reference to the conceptual framework’	January 1, 2022
Amendments to IAS 16, ‘Property, plant and equipment: proceeds	January 1, 2022
before intended use’
Amendments to IAS 37, ‘Onerous contracts—cost of fulfilling a	January 1, 2022
Annual improvements to IFRS Standards 2018–2020	January 1, 2022

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs endorsed by the FSC are as follows:

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Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
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New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets	To be determined by
between an investor and its associate or joint venture’	International Accounting
	Standards Board
IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’	January 1, 2023
Amendment to IFRS 17, ‘Initial application of IFRS 17 and IFRS 9 –	January 1, 2023
comparative information’
Amendments to IAS 1, ‘Classification of liabilities as current or	January 1, 2023
non-current’
Amendments to IAS 1, ‘Disclosure of accounting policies’	January 1, 2023
Amendments to IAS 8, ‘Definition of accounting estimates’	January 1, 2023
Amendments to IAS 12, ‘Deferred tax related to assets and liabilities	January 1, 2023
arising from a single transaction’

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies applied in the preparation of these consolidated financial statements are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the “Regulations Governing the Preparation of Financial Reports by Securities Issuers”, International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”).

(2) Basis of preparation

• A. Except for the following items, the consolidated financial statements have been prepared under the historical cost convention:

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

• (b) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

• (c) Biological assets measured at fair value less costs to sell.

• B. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

• A. Basis for preparation of consolidated financial statements:

• (a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.

• (b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.

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• (c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities		December 31, 2021 December 31, 2020 100.00 100.00 90.00 90.00 50.00 50.00 68.00 68.00 51.00 51.00 99.99 99.99 - - 75.00 60.00 Ownership (%)	December 31, 2021 December 31, 2020 100.00 100.00 90.00 90.00 50.00 50.00 68.00 68.00 51.00 51.00 99.99 99.99 - - 75.00 60.00 Ownership (%)	Note
				December 31, 2021
The Company The Company The Company The Company The Company Plenty Type Limited (Cayman Islands) Chia Tai Lianyungang Co., Ltd. Rui Fu Foods Co., Ltd.	Plenty Type Limited (Cayman Islands) Charoen Pokphand (Taiwan) Corp., Ltd. Arbor Acres Taiwan Co., Ltd. Rui Mu Foods Co., Ltd. Rui Fu Foods Co., Ltd. Chia Tai Lianyungang Co., Ltd. Lianyungang Chia Tai Agro-industry Development Co., Ltd. Sheng Da Foods Co., Ltd.	Management of producing and non- producing business investments Management of importing and exporting business Husbandry, management of chickens to produce breeder chicken and daily chicken Management of layers and related business Management of layers and related business Management of producing and non- producing business investments Feeds producing, poultry raising, processing and sales Management of layers and related business		100.00 90.00 50.00 68.00 51.00 99.99 - 75.00	100.00 90.00 50.00 68.00 51.00 99.99 - 60.00	Note 5 Note 1 Note 4 Note 6 Note 2 Note 3

• Note 1: The Company’s direct or indirect shareholding ratio does not exceed 50%. However, the Company holds more than half of the seats of the Board of Directors. Thus, the subsidiary was included in the consolidation.

• Note 2: On January 22, 2020, Chia Tai Lianyungang Co., Ltd. completed the disposal of its 70% equity interest in Lianyungang Chia Tai Agro-industry Development Co., Ltd. Refer to Note 6(6) for more details.

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• Note 3: In February 2020 and December 2020, Sheng Da Foods Co., Ltd. increased its capital by cash and the 2 million preferred shares were fully subscribed by Jih Ching Egg Co., Ltd. and Li-Chun Farm Product Co., Ltd., respectively, in line with the joint venture agreement entered into between Rui Fu Foods Co., Ltd. and Jih Ching Egg Co., Ltd. as well as LiChun Farm Product Co., Ltd. Therefore, the shareholding ratio of Rui Fu Foods Co., Ltd. decreased to 60% from 100%. On December 28, 2020, Jih Ching Egg Co., Ltd. and LiChun Farm Product Co., Ltd. converted all preferred shares to ordinary shares totalling 4,000,000 shares. The Board of Directors of Sheng Da Foods Co., Ltd. resolved to increase its capital by cash in June 2021. Rui Fu Foods Co., Ltd. subscribed 6,000,000 ordinary shares for a total amount of $60,000 in July 2021, and the registration had been completed in June 2021. The shareholding ratio of Rui Fu Foods Co., Ltd increased to 75% from 60%.

• Note 4: In April 2020, Rui Mu Foods Co., Ltd. increased its capital by cash and the 10 million ordinary shares were fully subscribed by the Company. Therefore, the shareholding ratio of the Company increased to 68% from 52%.

• Note 5: In October 2020 and October 2021, the Board of Directors of Plenty Type Limited (Cayman Islands) resolved to decrease its capital and the number of shares reduced were 15,151,515 shares and 23,376,623, shares, totaling $99,978 and $150,012, respectively.

• Note 6: Rui Fu Foods Co., Ltd. increased its capital by cash in January 2021 and July 2021, and the Company subscribed ordinary shares proportionately to its ownership in the amount of 5,100,000 shares, equivalent to $102,000. The registration for the changes had been completed in July 2021.

• C. Subsidiaries not included in the consolidated financial statements: None.

• D. Adjustments for subsidiaries with different balance sheet dates: None.

• E. Significant restrictions: None.

• F. Subsidiaries that have non-controlling interests that are material to the Group: None.

(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in NTD, which is the Company’s functional and the Group’s presentation currency.

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

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• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

• (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are re-translated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• (d) All foreign exchange gains and losses are presented in the statement of comprehensive income within ‘other gains and losses’.

• B. Translation of foreign operations

• (a) The operating results and financial position of all the group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

  • ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

iii. All resulting exchange differences are recognised in other comprehensive income.

• (b) Goodwill and fair value adjustments arising on the acquisition of a foreign entity are treated as assets and liabilities of the foreign entity and translated at the closing exchange rates at the balance sheet date.

(5) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

• (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;

• (b) Assets held mainly for trading purposes;

• (c) Assets that are expected to be realised within twelve months from the balance sheet date;

• (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

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• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

• (a) Liabilities that are expected to be settled within the normal operating cycle;

• (b) Liabilities arising mainly from trading activities;

• (c) Liabilities that are to be settled within twelve months from the balance sheet date;

• (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

(6) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

(7) Financial assets at fair value through profit or loss

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

• D. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(8) Financial assets at fair value through other comprehensive income

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Group has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income.

• (a) The objective of the Group’s business model is achieved both by collecting contractual cash flows and selling financial assets; and

• (b) The assets’ contractual cash flows represent solely payments of principal and interest.

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• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group subsequently measures the financial assets at fair value.

The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.

(9) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Group a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(10) Impairment of financial assets

For financial assets at amortised cost, at each reporting date, the Group recognises the impairment provision for expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

(11) Derecognition of financial assets

The Group derecognises a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

(12) Operating leases (lessor)

Lease income from an operating lease (net of any incentives given to the lessee) is recognised in profit or loss on a straight-line basis over the lease term.

(13) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in progress comprises raw materials, direct labour, other direct costs and related production overheads allocated based on normal operating capacity. It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

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(14) Non-current assets (or disposal groups) held for sale

Non-current assets (or disposal groups) are classified as assets held for sale when their carrying amount is to be recovered principally through a sale transaction rather than through continuing use, and a sale is considered highly probable. They are stated at the lower of carrying amount and fair value less costs to sell.

(15) Biological assets

Biological assets are measured at their fair value less costs to sell. Except for the case where the fair value cannot be measured reliably, they are measured at its cost less accumulated depreciation and impairment losses. Gains or losses on changes in fair value less costs to sell are recognised in profit or loss.

- (16) Investment accounted for using equity method joint ventures

The Group accounts for its interest in a joint venture using equity method. Unrealised profits and losses arising from the transactions between the Group and its joint venture are eliminated to the extent of the Group’s interest in the joint venture. However, when the transaction provides evidence of a reduction in the net realisable value of current assets or an impairment loss, all such losses shall be recognised immediately. When the Group’s share of losses in a joint venture equals or exceeds its interest in the joint venture together with any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the joint venture.

(17) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

• B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Group and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each financial year-end. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change.

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The estimated useful lives of property, plant and equipment are as follows:

Land improvements	3~30 years
Buildings and structures	3~60 years
Machinery and equipment	2~20 years
Transportation equipment	6 years
Leasehold improvements	3~20 years
Other equipment	3~20 years

(18) Leasing arrangements (lessee) - right-of-use assets / lease liabilities

• A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Group. For short-term leases or leases of lowvalue assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are fixed payments, less any lease incentives receivable.

The Group subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following:

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

• (b) Any lease payments made at or before the commencement date.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term. When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

(19) Intangible assets

• A. Computer software

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life of 3 years.

B. Goodwill

Goodwill arises from business combination accounted for by applying the acquisition method.

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(20) Impairment of non-financial assets

• A. The Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised 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 or value in use. Except for goodwill, when the circumstances or reasons for recognizing impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortised historical cost would have been if the impairment had not been recognised.

• B. The recoverable amounts of goodwill are evaluated periodically. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. Impairment loss of goodwill previously recognised in profit or loss shall not be reversed in the following years.

• C. For the purpose of impairment testing, goodwill acquired from a business combination is allocated to each of the cash-generating units, or groups of cash-generating units, that is/are expected to benefit from the synergies of the business combination.

(21) Borrowings

Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is measured over the period of the borrowings using the effective interest method.

(22) Notes and accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes and accounts payable are those resulting from operating and non-operating activities.

• B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(23) Derecognition of financial liabilities

A financial liability is derecognised when the obligation specified in the contract is either discharged or cancelled or expired.

(24) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expense in that period when the employees render service.

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B. Pensions

• (a) Defined contribution plans

For defined contribution plans, the contributions are recognised as pension expense when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

(b) Defined benefit plans

• i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Group in current period or prior period. The liability recognised in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of government bonds (at the balance sheet date) of a currency and term consistent with the currency and term of the employment benefit obligations.

• ii. Remeasurements arising on defined benefit plans are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

iii. Past service costs are recognised immediately in profit or loss.

• C. Employees’ compensation and directors’ and supervisors’ remuneration

Employees’ compensation and directors’ and supervisors’ remuneration are recognised as 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.

(25) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

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• C. Deferred tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred tax liability is settled.

• D. Deferred tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred tax assets are reassessed.

• E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

(26) Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or stock options are shown in equity as a deduction, net of tax, from the proceeds.

(27) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

(28) Revenue recognition

• A. Sales of goods

• (a) The Group manufactures and sells animal feeds, cooked food, agricultural livestock products and related consumable food products. Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the

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products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the customers, and either the customers have accepted the products in accordance with the sales contract, or the Group has objective evidence that all criteria for acceptance have been satisfied.

• (b) Revenue from sales of goods is recognised based on the price specified in the contract, net of the estimated volume discounts, sales discounts and allowances. Accumulated experience is used to estimate and provide for the volume discounts, sales discounts and allowances using the expected value method, and revenue is only recognised to the extent that it is highly probable that a significant reversal will not occur. The estimation is subject to an assessment at each reporting date. A deduction of accounts receivable is recognised for expected sales discounts and allowances payable to customers in relation to sales made until the end of the reporting period. No element of financing is deemed present as the sales are made with a credit term of 3 to 120 days, which is consistent with market practice.

• (c) A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

B. Financing components

The Group does not expect to have 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. As a consequence, the Group does not adjust any of the transaction prices for the time value of money.

(29) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. The Group’s chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Board of Directors that makes strategic decisions.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION

UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

(1) Critical judgements in applying the Group’s accounting policies

None.

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(2) Critical accounting estimates and assumptions

A. Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. The Group evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation.

As of December 31, 2021, the carrying amount of inventories was $1,877,226.

• B. Measurement of fair value of biological assets

Except when fair value cannot be reliably measured, biological assets should be measured at fair value less costs to sell on initial recognition and at the end of each reporting period. The Group has to identify whether the active market prices are available for each category of biological assets, to determine the relevance between the nature of biological assets and the chosen market, and to decide which major items should be accounted for as costs to sell. The Group then estimates the fair value less costs to sell based on the information mentioned above. Any fluctuations in market price and costs to sell could materially affect the carrying amount of biological assets.

As of December 31, 2021, the carrying amount of biological assets was $2,059,679.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash on hand and revolving funds Checking accounts Demand deposits	December 31, 2021 9,360 $ 4,135 173,513 187,008 $	December 31,2020
		4,363 $ 4,262 239,054
		247,679 $

• A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.

• B. As of December 31, 2021 and 2020, the Group has restricted cash and cash equivalents pledged as collateral totalling $9,650 and $8,200, respectively, classified as other current financial assets and shown as ‘other current assets’. Please refer to Note 8 for details.

• C. As of December 31, 2021 and 2020, the Group has restricted cash and cash equivalents under the Regulations Governing the Management, Utilisation, and Taxation of Repatriated Offshore Funds totalling $0 and $39,734, respectively, classified as other current financial assets and shown as ‘other current assets’.

~30~

(2) Financial assets at fair value through other comprehensive income

Items Non-current items: Equity instruments Listed stocks Valuation adjustment	December 31,2021 December 31,2020 1,461,863 $ 471,176 $ 1,113,152 1,454,696 2,575,015 $ 1,925,872 $

• A. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

		2021	2020
Equity instruments at fair value through other
comprehensive income
Fair value change recognised in other
comprehensive income	($	304,789)	75,598) ($
Dividend income recognised in profit or loss
held at end of year	$	82,101	57,589 $

• B. The Company and the subsidiary, Plenty Type Limited (Cayman Islands), holds CPF’s shares, which are traded on the Thailand Stock Exchange. CPF is the ultimate parent company of the Group.

• C. The Group has elected to classify equity investments that are considered to be strategic investments and steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $2,575,015 and $1,925,872 as at December 31, 2021 and 2020, respectively.

(3) Notes and accounts receivable

Notes and accounts receivable
	December	31,2021	December	31,2020
Notes receivable	$	416,032	$	280,767
Accounts receivable	$	2,387,003	$	1,910,619
Less: Allowance for uncollectible accounts	(	16,162)	(	7,228)
	$	2,370,841	$	1,903,391

• A. The ageing analysis of accounts receivable is as follows:

Current Up to 120 days 121 to 365 days Over one year	December31,2021 2,305,648 $ 71,336 840 9,179 2,387,003 $	December31,2020
		1,863,893 $ 42,342 3,253 1,131
		1,910,619 $

The above ageing analysis was based on past due date.

~31~

• B. As of December 31, 2021 and 2020, accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2020, the balance of accounts receivable and notes receivable from contracts with customers amounted to $2,138,379.

• C. As of December 31, 2021 and 2020, all the Group’s notes receivable were not past due.

• D. The credit quality of accounts receivable was in the following category based on the Group’s Credit Quality Control Policy:

With guarantee Without guarantee	December31,2021 153,934 $ 2,233,069 2,387,003 $	December31,2020
		130,299 $ 1,780,320
		1,910,619 $

The Group holds commercial papers, real estate and deposits as collateral for accounts receivable.

• E. As at December 31, 2021 and 2020, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes receivable were $416,032 and $280,767, respectively, while the amount that best represents the Group’s accounts receivable were $2,370,841 and $1,903,391, respectively.

• F. Information relating to credit risk of accounts receivable (including related parties) and notes receivable is provided in Note 12(2).

(4) Inventories

Raw materials Packing supplies Work in progress Finished goods General merchandise Inventory in transit		December 31,2021
	Allowance for Cost valuation loss 1,051,158 $ - $ 36,673 247) ( 28,046 - 707,157 7,502) ( 52,399 3,885) ( 13,427 - 1,888,860 $ 11,634) ($		Book value
			1,051,158 $ 36,426 28,046 699,655 48,514 13,427
			1,877,226 $

~32~

			December 31,2020	December 31,2020
				Allowance for
		Cost		valuation loss		Book value
Raw materials	$	747,851	($	238)	$	747,613
Packing supplies		33,402	(	995)		32,407
Work in progress		29,550		-		29,550
Finished goods		454,351	(	9,250)		445,101
General merchandise		54,127	(	1,278)		52,849
Inventory in transit		8,872		-		8,872
	$	1,328,153	($	11,761)	$	1,316,392

The cost of inventories recognised as expense for the year:

		2021		2020
Cost of goods sold	$	21,434,983	$	18,799,712
Gain on reversal of decline in market value	(	127)	(	49,248)
Others		6,263	(	7,013)
Less: Operating costs from discontinued
operations		-	(	78,539)
	$	21,441,119	$	18,664,912

• A. The cost of goods sold includes the cost of selling biological assets.

• B. Others pertain mainly to gain and loss on physical inventory count, loss on scrapped inventory and income from disposal of leftovers and scraps.

• C. The Group reversed a previous inventory write-down which was accounted for as reduction of cost of goods sold because of the increase in market prices of certain finished goods.

(5) Biological assets

• A. Biological assets

ological assets Biological assets
Biological assets - current: Consumable biological assets Consumable biological assets - changes in fair value less costs to sell Bearer biological assets Bearer biological assets - accumulated depreciation Biological assets-non-current: Bearer biological assets Bearer biological assets - accumulated depreciation	December 31, 2021 1,281,083 $ 38,229 835,009 539,483) ( 1,614,838 $ 531,928 $ 87,087) ( 444,841 $	December 31,2020
		1,075,447 $ 50,967 667,659 360,030 (
		1,434,043 $
		488,466 $ 89,354 (
		399,112 $

Consumable biological assets are those that are to be harvested as agricultural products or sold as biological assets. Bearer biological assets are those other than consumable biological assets.

~33~

B. Movements of biological assets are as follows:

		2021		2020
At January 1	$	1,833,155	$	1,683,087
Purchases		1,536,504		1,051,702
Costs and expenses input		7,812,052		6,960,769
Sales	(	3,427,142)	(	3,104,690)
(Loss) gain on changes in fair value less
costs to sell	(	12,738)		26,843
Transferred to inventories	(	5,673,743)	(	4,781,387)
Others	(	8,409)	(	3,169)
At December 31	$	2,059,679	$	1,833,155

• C. Biological assets are comprised of broiler chicken, breeder chicken, fattening swine, and breeder swine, etc. Biological assets, other than fattening swine which are measured at fair value less costs to sell at each reporting date, are measured at cost less accumulated depreciation and impairment losses. The fair value of fattening swine is measured using quoted market prices as references.

The market prices or fair values at the present condition of breeders are unavailable due to short production cycle; the market prices or fair values at present condition of broiler chickens are difficult to obtain. The valuation based on a discounted cash flow method is considered unreliable given the uncertainty with respect to external factors such as climate, weather, diseases etc. Therefore, breeders and broiler chicken are measured using the cost approach. Cost of biological assets includes all costs incurred during the growth cycle such as costs of new-born animals, feeds, and other farm costs.

Bearer biological assets are depreciated using the straight-line method through the productive period of each biological asset. The productive period of breeder swine is approximately 24 ~ 36 months; the productive period of breeder chickens is approximately 30 weeks ~ 1 year. For the years ended December 31, 2021 and 2020, depreciation expense on biological assets amounted to $509,511 and $397,312, respectively.

• D. Estimates of physical quantities of biological assets are as follows:

Livestock production: Estimates of physical quantities (Units: heads)	December 31, 2021 5,385,387	December 31,2020
		5,681,548

• E. Financial risk management policies

The Group is exposed to commodity risks arising from changes in market prices of chickens and swine. The Group does not anticipate that the prices of the agricultural products will decline significantly in the foreseeable future and there is no available derivative or other contracts. The Group reviews the predictions of the prices of the agriculture products regularly, and considers such predictions in assessing financial risk.

~34~

(6) Non-current assets held for sale and discontinued operations

• A. The assets and liabilities related to Lianyungang Chia Tai Agro-industry Development Co., Ltd. have been reclassified as held for sale and presented as discontinued operations as they meet the definition of discontinued operations following the approval of Chia Tai Lianyungang Co., Ltd.’s Board of Directors on February 18, 2019 to sell all shares held in Lianyungang Chia Tai Agroindustry Development Co., Ltd. to the related party, Chia Tai (China) Investment Co., Ltd. The proceeds from disposal amounted to CNY 61,768 thousand and the actual proceeds received amounted to CNY 57,725 thousand after deducting the withholding tax of CNY 4,043 thousand in accordance with the Enterprise Income Tax Law of the People’s Republic of China. The transaction procedures were completed in January 2020. The gain on disposal of the shares in Lianyungang Chia Tai Agro-industry Development Co., Ltd. amounted to $84,145.

• B. The cash flow information of the discontinued operations is as follows:

		2021		2020
Operating cash flows	$	-	($	40,567)
Investing cash flows		-	(	794)
Effect of foreign exchange		-	(	363)
Total cash flows	$	-	($	41,724)

• C. Analysis of the result of discontinued operations, and the result recognised on the remeasurement of disposal group, is as follows:

Operating revenue Operating costs Operating expenses Total non-operating income and expenses Loss before tax from discontinued operations Income tax benefit Loss after tax from discontinued operations Attributable to: Discontinued operations of parent company Non-controlling interest Loss after tax from discontinued operations	2021 2020 - $ 86,391 $ - 78,539) ( - 10,393) ( - 459) ( - 3,000) ( - 750 - $ 2,250) ($ - $ 1,575) ($ - 675) ( - $ 2,250) ($

No impairment loss occurred based on the remeasurement of the disposal group held for sale at the lower of its carrying amount or fair value less costs to sell.

• D. For the profit from continuing and discontinued operations attributable to owners of the parent, please refer to Note 6(28) Earnings per share for the details.

~35~

– (7) Investment accounted for using equity method joint ventures

The carrying amount of the Group’s interests in all individually immaterial joint ventures and the Group’s share of the operating results are summarised below:

As of December 31, 2021 and 2020, the carrying amount of the Group’s individually immaterial joint ventures amounted to $100,160 and $99,880, respectively.

Profit (loss) for the year from continuing operations Other comprehensive income, net of tax Total comprehensive income (loss)	2021 2020 280 $ 120) ($ - - 280 $ 120) ($

The Company jointly established a joint venture, Feng Sheng Livestock Co., Ltd., with a joint venture party on July 20, 2020. The authorised capital was $600,000. As of December 31, 2021, the paid-in capital was $200,000, equivalent to 20 million shares of common stock. Both the Company and the joint venture party invested in the joint venture in the amount of $100,000 and each held 50% equity interest in the joint venture.

~36~

(8) Property, plant and equipment

At January 1, 2021 Cost Accumulated depreciation 2021 Opening net book amount as at January 1 Additions Disposals Reclassifications Depreciation Closing net book amount as at December 31 At December 31, 2021 Cost Accumulated depreciation	Land 2,700,970 $ - 2,700,970 $ 2,700,970 $ 9,969 - 307,355 - 3,018,294 $ 3,018,294 $ - 3,018,294 $	Land improvements	Buildings and structures	Machinery and equipment Transportation equipment 3,891,542 $ 358,829 $ 2,212,956) ( 163,656) ( 1,678,586 $ 195,173 $ 1,678,586 $ 195,173 $ 128,523 38,999 - 4,084) ( 307,449 49,874 275,565) ( 56,228) ( 1,838,993 $ 223,734 $ 4,256,052 $ 430,389 $ 2,417,059) ( 206,655) ( 1,838,993 $ 223,734 $	Leasehold improvements	Other equipment	Construction in progress and equipment to be inspected Total 2,633,662 $ 15,754,230 $ - 4,858,112) ( 2,633,662 $ 10,896,118 $ 2,633,662 $ 10,896,118 $ 1,977,436 2,337,929 - 10,048) ( 1,300,455) ( - - 752,396) ( 3,310,643 $ 12,471,603 $ 3,310,643 $ 17,787,921 $ - 5,316,318) ( 3,310,643 $ 12,471,603 $	Total
		185,876 $ 59,810) ( 126,066 $ 126,066 $ 13,015 - 47,839 17,829) ( 169,091 $ 243,735 $ 74,644) ( 169,091 $	3,948,001 $ 1,395,534) ( 2,552,467 $ 2,552,467 $ 89,859 5,224) ( 443,015 219,575) ( 2,860,542 $ 4,317,427 $ 1,456,885) ( 2,860,542 $		1,018,486 $ 610,083) ( 408,403 $ 408,403 $ 16,843 - 5,863 88,567) ( 342,542 $ 1,020,888 $ 678,346) ( 342,542 $	1,016,864 $ 416,073) ( 600,791 $ 600,791 $ 63,285 740) ( 139,060 94,632) ( 707,764 $ 1,190,493 $ 482,729) ( 707,764 $
								12,471,603 $

~37~

Land At January 1, 2020 Cost 2,377,957 $ Accumulated depreciation - 2,377,957 Less: Transferred non- current assests held for sale - 2,377,957 $ 2020 Opening net book amount as at January 1 2,377,957 $ Additions 18,330 Disposals 22,964) ( Reclassifications 327,647 Depreciation - Loss of control in subsidiaries - Net exchange differences - Closing net book amount as at December 31 2,700,970 $ At December 31, 2020 Cost 2,700,970 $ Accumulated depreciation - 2,700,970 $	Land improvements	Buildings and structures	Machinery and equipment	Transportation equipment	Leasehold improvements	Other equipment	Construction in progress and equipment to be inspected Total 1,066,646 $ 13,657,991 $ - 4,769,685) ( 1,066,646 8,888,306 - 121,060) ( 1,066,646 $ 8,767,246 $ 1,066,646 $ 8,888,306 $ 2,402,630 2,841,566 - 26,161) ( 834,563) ( - - 686,549) ( 1,042) ( 120,472) ( 9) ( 572) ( 2,633,662 $ 10,896,118 $ 2,633,662 $ 15,754,230 $ - 4,858,112) ( 2,633,662 $ 10,896,118 $
	160,084 $ 45,681) ( 114,403 - 114,403 $ 114,403 $ 17,978 - 9,384 15,699) ( - - 126,066 $ 185,876 $ 59,810) ( 126,066 $	3,782,534 $ 1,347,834) ( 2,434,700 34,474) ( 2,400,226 $ 2,434,700 $ 122,801 - 222,094 192,838) ( 34,129) ( 161) ( 2,552,467 $ 3,948,001 $ 1,395,534) ( 2,552,467 $	4,035,713 $ 2,305,232) ( 1,730,481 76,664) ( 1,653,817 $ 1,730,481 $ 102,386 860) ( 184,652 262,138) ( 75,580) ( 355) ( 1,678,586 $ 3,891,542 $ 2,212,956) ( 1,678,586 $	299,461 $ 178,436) ( 121,025 2,934) ( 118,091 $ 121,025 $ 78,094 2,337) ( 45,194 43,924) ( 2,866) ( 13) ( 195,173 $ 358,829 $ 163,656) ( 195,173 $	987,956 $ 530,653) ( 457,303 - 457,303 $ 457,303 $ 34,752 - 5,974 89,626) ( - - 408,403 $ 1,018,486 $ 610,083) ( 408,403 $	947,640 $ 361,849) ( 585,791 6,988) ( 578,803 $ 585,791 $ 64,595 - 39,618 82,324) ( 6,855) ( 34) ( 600,791 $ 1,016,864 $ 416,073) ( 600,791 $

~38~

• A. Amount of borrowing costs capitalised as part of property, plant and equipment and the range of the interest rates for such capitalisation are as follows:

	2021	2020
Amount capitalised	18,758 $	9,502 $
Interest rate range	0.46%~1.40%	0.99%~1.56%

• B. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.

• C. As of December 31, 2021 and 2020, the Group held 207 parcels and 208 parcels of agricultural land, respectively. The carrying amounts of land registered under the title of others amounted to $1,055,111 and $1,046,317, respectively. The titles of these parcels of land are registered under the title of individuals, however, the Group has agreements with those individuals to pledge these agricultural land to the Group.

(9) Leasing arrangements - lessee

• A. The Group leases various assets including land, buildings, business vehicles, and other equipment. Rental contracts are typically made for periods of 1 to 22 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

• B. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land Buildings Transportation equipment (Cargo truck) Other equipment Land Buildings Transportation equipment (Cargo truck) Other equipment	December 31, 2021 Carryingamount 299,768 $ 35,331 25,472 10,909 371,480 $ 2021 Depreciation charge 27,608 $ 10,026 6,037 6,802 50,473 $	December 31,2020
		Carryingamount
		298,184 $ 16,061 22,047 9,623
		345,915 $
		2020
		Depreciation charge
		26,357 $ 7,291 2,868 7,050
		43,566 $

• C. For the years ended December 31, 2021 and 2020, the additions to right-of-use assets were $76,038 and $43,533, respectively.

• D. The Group has no significant profit or loss in relation to lease contracts for the years ended December 31, 2021 and 2020.

~39~

• E. For the years ended December 31, 2021 and 2020, the Group’s total cash outflow for leases were $51,953 and $53,615, respectively.

(10) Intangible assets

		Software			Goodwill		Total
At January 1, 2021
Cost	$	10,651		$	-	$		10,651
Accumulated
amortisation and
impairment	(	10,477)			-	(		10,477)
	$	174		$	-	$		174
2021
At January 1	$	174		$	-	$		174
Additions		4,089			-			4,089
Amortisation	(	733)			-	(		733)
At December 31	$	3,530		$	-	$		3,530
At December 31, 2021
Cost	$	14,740		$	-	$		14,740
Accumulated
amortisation and
impairment	(	11,210)			-	(		11,210)
	$	3,530		$	-	$		3,530
		Software			Goodwill		Total
At January 1, 2020
Cost	$	10,568		$	13,208	$		23,776
Accumulated
amortisation and
impairment	(	9,943)			-	(		9,943)
	$	625		$	13,208	$		13,833
2020
At January 1	$	625		$	13,208	$		13,833
Additions		83			-			83
Amortisation	(	534)			-	(		534)
Impairment loss		-	(		13,331)	(		13,331)
Net exchange differences		-			123			123
At December 31	$	174		$	-	$		174
At December 31, 2020
Cost	$	10,651		$	-			10,651
Accumulated
amortisation and
impairment	(	10,477)			-	(		10,477)
	$	174		$	-	$		174

~40~

(11) Short-term borrowings

==> picture [481 x 136] intentionally omitted <==

----- Start of picture text -----

Type of borrowings December 31, 2021 Interest rate range Collateral
Unsecured borrowings $ 3,090,000 0.95%~1.55% None
Letters of credit 211,031 0.94%~1.12% None
$ 3,301,031
Type of borrowings December 31, 2020 Interest rate range Collateral
Unsecured borrowings $ 2,497,000 0.95%~1.58% None
Letters of credit 162,715 0.64%~1.16% None
$ 2,659,715
----- End of picture text -----

(12) Short-term notes and bills payable

	December 31, 2021	December 31, 2021	December 31, 2020	December 31, 2020
Commercial paper payable	$	1,040,000	$	600,000
Less: Unamortised discounts	(	797)	(	574)
	$	1,039,203	$	599,426
Interest rate range		0.14%~0.84%		0.28%~0.89%

The short-term notes and bills payable were guaranteed by certain financial institutions.

(13) Other payables

Accrued salary Payables for machinery and equipment Contract liabilities Others	December 31, 2021 432,804 $ 73,068 159 304,876 810,907 $	December 31,2020
		417,022 $ 61,144 - 260,081
		738,247 $

- (14) Long term borrowings

Type of borrowings	Borrowing period	Interest rate range December 31, 2021 0.1%-1.43% $ 1,879,500 0.79%-1.35% 5,490,000 7,369,500 239,750) ( $7,129,750
Secured loans Unsecured credit loans Less: Current portion	2017.10.05~2031.04.07 2017.09.06~2028.09.29

~41~

Type of borrowings Borrowing period Secured loans 2017.10.5~2030.12.15 Unsecured credit loans 2017.9.6~2023.12.31 Less: Current portion	Interest rate range December 31,2020 0.1%-1.4% $ 1,198,500 0.79%-1.35% 3,530,000 4,728,500 213,250) ( $ 4,515,250

Information on collaterals pledged for long-term borrowings is provided in Note 8.

(15) Pensions

A. Defined benefit plans

• (a) The Company and its domestic subsidiaries have defined benefit pension plans in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Labor Standards Act. Under the defined benefit plans, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company and its domestic subsidiaries contribute monthly an amount equal to specific percentage of the employees’ monthly salaries and wages to the retirement fund deposited with the Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company and its domestic subsidiaries would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balances are insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company and its domestic subsidiaries will make contributions to cover the deficit by next March.

• (b) The amounts recognised in the balance sheet are as follows:

	December	31,2021	December	31,2020
Present value of defined benefit obligations	($	399,078)	($	448,438)
Fair value of plan assets		295,821		306,564
Net defined benefit liability	($	103,257)	($	141,874)

~42~

(c) Movements in net defined benefit liabilities are as follows:

	Present value of	Present value of
	defined benefit				Fair value of		Net defined
		obligations			planassets	benefitliability
2021
Balance at January 1	($	448,438)		$	306,564	($	141,874)
Current service cost	(	2,328)			-	(	2,328)
Interest (expense) income	(	1,289)			890	(	399)
	(	452,055)			307,454	(	144,601)
Remeasurements:
Return on plan assets (excluding
amounts included in interest
income or expense)		-			4,631		4,631
Change in demographic
assumptions	(	552)			-	(	552)
Change in financial assumptions		10,539			-		10,539
Experience adjustments		5,087			-		5,087
		15,074			4,631		19,705
Pension fund contribution		-			21,639		21,639
Paid pension		37,903	(		37,903)		-
Balance at December 31	($	399,078)		$	295,821	($	103,257)
	Present value of
	defined benefit				Fair value of		Net defined
		obligations			planassets	benefitliability
2020
Balance at January 1	($	463,700)		$	318,983	($	144,717)
Current service cost	(	2,560)			-	(	2,560)
Interest (expense) income	(	2,917)			2,033	(	884)
	(	469,177)			321,016	(	148,161)
Remeasurements:
Return on plan assets (excluding
amounts included in interest
income or expense)		-			10,701		10,701
Change in demographic
assumptions	(	60)			-	(	60)
Change in financial assumptions	(	11,997)			-	(	11,997)
Experience adjustments	(	14,955)			-	(	14,955)
	(	27,012)			10,701	(	16,311)
Pension fund contribution		-			22,598		22,598
Paid pension		47,752	(		47,752)		-
Balance at December 31	($	448,437)		$	306,563	($	141,874)

~43~

• (d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s and domestic subsidiaries’ defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labour Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the Regulator. The Company and domestic subsidiaries have no right to participate in managing and operating that fund and hence the Company and domestic subsidiaries are unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2021 and 2020 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

• (e) The principal actuarial assumptions used were as follows:

Discount rate Future salary increases	2021 2020 0.65% 0.30% 2.00% 2.00%

Future mortality rate was estimated based on the 6th Taiwan Standard Ordinary Experience Mortality Table.

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis was as follows:

Increase 1% Decrease 1% 2021 Effect on present value of defined benefit obligation 28,107) ($ 31,712 $ Increase 1% Decrease 1% 2020 Effect on present value of defined benefit obligation 32,953) ($ 37,366 $ Discount rate Discount rate	Increase 1% Decrease 1% 30,944 $ 28,015) ($ Increase 1% Decrease 1% 36,324 $ 32,739) ($ Future salaryincreases Future salaryincreases

~44~

The sensitivity analysis above is based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the previous period.

• (f) Expected contributions to the defined benefit pension plans of the Company and domestic subsidiaries for the year ending December 31, 2022 amount to $16,446.

• (g) As of December 31, 2021, the weighted average duration of the retirement plan is 4~7 years.

• B. Defined contribution plans

• (a) Effective July 1, 2005, the Company and its domestic subsidiaries have established defined contribution pension plans (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company and its domestic subsidiaries contribute monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment. The pension costs for the aforementioned defined contribution pension plans of the Group for the years ended December 31, 2021 and 2020 were $56,639 and $51,400, respectively.

• (b) The Company’s Mainland China subsidiary, Lianyungang Chia Tai Agro-industry Development Co., Ltd., has a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on certain percentage of employees’ monthly salaries and wages. The contribution percentage has been adjusted to 16% since May 1, 2019. Other than the monthly contributions, the Group has no further obligations. The pension costs for the aforementioned defined contribution pension plan of this subsidiary for the years ended December 31, 2021 and 2020 were $0 and $451, respectively.

(16) Share capital - common stock

As of December 31, 2021, the Company’s authorised capital was $3,579,000, consisting of 357,900 thousand shares of common stock, and the paid-in capital was $2,679,910, consisting of 267,991 thousand shares of common stock with a par value of $10 (in dollars) per share. All proceeds from shares issuance have been collected.

For the years ended December 31, 2021 and 2020, there were no changes in the number of the Company’s ordinary shares outstanding.

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(17) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to 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. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paidin capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(18) Retained earnings

• A. Under the Company’s Articles of Incorporation, the current year’s earnings, if any, shall first be used to pay all taxes and offset prior years’ operating losses and then 10% of the remaining amount shall be set aside as legal reserve. A special reserve is set aside or reversed in accordance with related laws or regulations by the Competent Authority. The remainder, if any, along with the accumulated unappropriated earnings in prior years, shall be distributed as shareholders’ bonus as resolved by the shareholders. Cash dividends to shareholders shall account for at least 10% of the total dividends distributed to shareholders. If cash dividend is lower than $0.1 (in dollars) per share, dividends are distributed using share dividends.

• B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• C. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

• D. The appropriations of earnings for 2020 passed the statutory resolution threshold through electronic voting on June 21, 2021, and the appropriations of earnings for 2019 had been resolved at the shareholders’ meeting on June 23, 2020. The appropriations of earnings for 2020 have been resolved at the shareholders’ meeting on July 22, 2021.

Legal reserve Cash dividends	Dividends per share Amount (in dollars) 164,389 $ 1,205,959 4.5 $ 2020	2019	2019
	Amount 164,389 $ 1,205,959	Amount 146,471 $ 1,071,964	Dividends per share (in dollars)
			4.0 $

The effective dates for the above distribution of cash dividends are July 4, 2021 and July 5, 2020, respectively.

~46~

• E. For the information relating to employees’ compensation and directors’ and supervisors’ remuneration, please refer to Note 6(26).

(19) Operating revenue

		2021		2020
Revenue from contracts with customers	$	24,841,345	$	22,276,026
Less: Operating revenue from discontinued
operations		-	(	86,391)
	$	24,841,345	$	22,189,635

• A. Disaggregation of revenue from contracts with customers

The Group derives revenue from the transfer of goods at a point in time in the following geographical regions:

2021		Domestic		Asia		Total
Total segment revenue	$	25,455,436	$	-	$	25,455,436
Inter-segment revenue	(	614,091)		-	(	614,091)
Revenue from external
customer contracts	$	24,841,345	$	-	$	24,841,345
Timing of revenue recognition
At a point in time	$	24,841,345	$	-	$	24,841,345
Less: Operating revenue from
discontinued operations		-		-		-
	$	24,841,345	$	-	$	24,841,345
2020		Domestic		Asia		Total
Total segment revenue	$	22,620,853	$	86,391	$	22,707,244
Inter-segment revenue	(	431,218)		-	(	431,218)
Revenue from external
customer contracts	$	22,189,635	$	86,391	$	22,276,026
Timing of revenue recognition
At a point in time	$	22,189,635	$	86,391	$	22,276,026
Less: Operating revenue from
discontinued operations		-	(	86,391)	(	86,391)
	$	22,189,635	$	-	$	22,189,635

B. Contract liabilities

The Group has recognised the following revenue-related contract liabilities:

Contract liabilities: Contract liabilities - advance receipts	December31,2021 159 $	December31,2020
		- $

• C. Information on revenue categorised by nature is provided in Note 14(3).

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(20) Other income and expenses, net

Other income and expenses, net are (losses) gains on changes in fair value less costs to sell of biological assets.

(21) (22) (23) (24)

Interest income Other income Other gains and losses Finance costs 2021 2020 Other income and expenses, net 12,738) ($ 26,843 $ 2021 2020 Interest income from bank deposits 359 $ 1,159 $ Less: Interest income from discontinued operations - 257) ( 359 $ 902 $ 2021 2020 Rental income 6,803 $ 8,217 $ Dividend income 82,101 57,589 88,904 $ 65,806 $ 2021 2020 (Loss) gain on disposal of property, plant and equipment 3,088) ($ 13,846 $ Gain on disposal of investment - 84,145 Gain on financial assets at fair value through profit or loss 888 - Impairment loss on non-financial assets - 13,331) ( Net foreign exchange gains 31,326 23,713 Other gains and losses 16,579 51,713 Less: Other gains and losses from discontinued operations - 716 45,705 $ 160,802 $ 2021 2020 Interest expense: Bank borrowings and lease liabilities 82,038 $ 76,789 $

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(25) Expenses by nature (Including discontinued operations)

Employee benefit expense Depreciation on property, plant and equipment Depreciation on right-of- use assets Amortisation Employee benefit expense Depreciation on property, plant and equipment Depreciation on right-of- use assets Amortisation	Operating cost 1,421,590 $ 677,813 37,812 3,958 2,141,173 $	Operating expenses 804,129 $ 74,583 12,661 593 891,966 $ 2021 2020	Total
			2,225,719 $ 752,396 50,473 4,551 3,033,139 $
	Operating cost 1,362,544 $ 632,581 34,184 3,460 2,032,769 $	Operating expenses 726,118 $ 53,968 9,382 677 790,145 $	Total
			2,088,662 $ 686,549 43,566 4,137
			2,822,914 $

(26) Employee benefit expense (Including discontinued operations)

Wages and salaries Labor and health insurance Pension costs Other personnel expenses Wages and salaries Labor and health insurance Pension costs Other personnel expenses		2021
	Operatingcost 1,187,334 $ 129,360 37,478 67,418 1,421,590 $	Operating expenses 725,954 $ 47,550 21,888 8,737 804,129 $ 2020	Total
			1,913,288 $ 176,910 59,366 76,155
			2,225,719 $
	Operatingcost 1,147,045 $ 114,322 35,031 66,146 1,362,544 $	Operating expenses 657,062 $ 39,928 20,264 8,864 726,118 $	Total
			1,804,107 $ 154,250 55,295 75,010
			2,088,662 $

Other personnel expenses include meal allowance, training expenses and employee benefits.

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• A. According to the Articles of Incorporation of the Company, an amount equal to at least 1% of the Company’s distributable profit of the current year should be appropriated as employees’ compensation expense. If the Company has an accumulated deficit, earnings should be reserved to cover the accumulated losses in advance.

• B. For the years ended December 31, 2021 and 2020, employees’ compensation was accrued at $17,194 and $20,711, respectively. The aforementioned amounts were recognised in wages and salaries expense.

For the year ended December 31, 2021, the employees’ compensation was estimated and accrued based on 1% (as prescribed by the Company’s Articles of Incorporation) of distributable profit of current year as of the end of reporting period.

For 2020, the difference of $178 between employees’ compensation of $20,889 resolved by the Board of Directors and the amount of $20,711 recognised in the 2020 financial statements, mainly resulting from a variance in estimation, had been adjusted in profit or loss for 2021.

• C. Information about employees’ compensation and directors’ and supervisors’ remuneration of the Company as resolved by the Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(27) Income tax

• A. Income tax expense

• (a) Components of income tax expense:

e tax ome tax expense Components of income tax expense:
		2021		2020
Current tax:
Current tax on profits for the year	$	356,504	$		400,985
Tax on undistributed surplus earnings		13,677			12,333
Prior year income tax (over)
underestimation	(	18,640)			229
Total current tax		351,541			413,547
Deferred tax:
Origination and reversal of temporary
differences	(	20,448)	(		7,224)
Total deferred tax	(	20,448)	(		7,224)
Income tax expense	$	331,093	$		406,323
Less: Income tax expense from
discontinued operations		-			750
Income tax expense	$	331,093	$		407,073

• (b) The income tax relating to components of other comprehensive income is as follows:

		2021		2020
Changes in fair value of financial assets at
fair value through other comprehensive
income	($	11,591)	$		-
Remeasurement of defined benefit
obligations	$	3,941	($		3,262)

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B. Reconciliation between income tax expense and accounting profit

			2021			2020
Tax calculated based on profit before tax		$	322,501		$	396,752
and statutory tax rate (Note)
Tax exempt income by tax regulation/
Expenses disallowed by tax regulation			13,555	(		17,340)
Change in assessment of realisation of
deferred tax assets			-			1,101
Tax on undistributed surplus earnings			13,677			12,333
Prior year income tax (over) underestimation	(		18,640)			229
Separate taxation (Repatriated Offshore
Funds)			-			13,248
Less: Income tax expense of discontinued
operations			-			750
Income tax expense		$	331,093		$	407,073

Note: The basis of applicable tax rate was calculated by using the tax rate of Taiwan (20%) and Mainland China (25%).

C. (a) Amounts of deferred tax assets or liabilities as a result of temporary differences and tax losses are as follows:

		December	31,2021		December	31,2020
Temporary differences:
Accrued sales discounts		$	20,698		$	18,908
Provision for loss on spare parts			3,962			3,784
Pension expense in excess of the limit
for tax purpose			20,651			28,375
Provision for inventory valuation loss
and change in fair value of biological assets	(		5,319)	(		7,841)
Unrealised foreign investment income	(		18,374)	(		7,073)
Unrealised exchange gain	(		326)	(		43)
Loss carryforward			57,494			27,067
Changes in fair value of financial
assets at fair value through other
comprehensive income			11,591			-
Others			865	(		32)
		$	91,242		$	63,145
		December	31,2021		December	31,2020
Deferred tax assets		$	121,044		$	82,495
Deferred tax liabilities	(		29,802)	(		19,350)
		$	91,242		$	63,145

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• (b) Amounts recognised in profit or loss and in other comprehensive income as a result of temporary differences and tax losses are as follows:

	2021	2020
Recognised in profit or loss	20,448 $	6,474 $
Recognised in other comprehensive
income	7,650 $	3,262 $

• D. Expiration dates of unused tax losses and amounts of unrecognised deferred tax assets of the Company and its subsidiaries - Rui Fu Foods Co., Ltd., Rui Mu Foods Co., Ltd. and Sheng Da Foods Co., Ltd. are as follows:

December 31, 2021

Year incurred 2017 2019 2020 2021	Amount filed/ assessed 14,351 $ 25,527 106,681 152,136 298,695 $	Unused amount 3,124 $ 25,527 106,681 152,136 287,468 $	Unrecognised deferred tax assets - $ - - - - $	Expiry year
				2027 2029 2030 2031

	December 31, 2020	December 31, 2020
Year incurred 2017 2019 2020	Amount filed/ assessed 14,351 $ 24,842 106,684 145,877 $	Unused amount 3,808 $ 24,842 106,684 135,334 $	Unrecognised deferred tax assets Expiry year - $ 2027 - 2029 - 2030 - $

• E. The income tax returns through 2019 of the Company and its subsidiaries - Arbor Acres Taiwan Co., Ltd., and Sheng Da Foods Co., Ltd. have been assessed and approved by the Tax Authority. The income tax returns through 2020 of the subsidiary - Charoen Pokphand (Taiwan) Co., Ltd. Rui Mu Foods Co., Ltd., Rui Fu Foods Co., Ltd. have been assessed and approved by the Tax Authority.

~52~

(28) Earnings per share

Basic earnings per share Profit attributable to ordinary shareholders Diluted earnings per share Profit from continuing operations attributable to ordinary shareholders Assumed conversion of all dilutive potential ordinary shares - employees’ compensation Profit attributable to ordinary shareholders plus assumed conversion of all dilutive potential ordinary shares	Weighted average number of ordinary shares outstanding Amount aftertax (sharesinthousands) 1,355,652 $ 267,991 1,355,652 $ 267,991 - 300 1,355,652 $ 268,291 2021	Earnings per share (indollars)
		5.06 $ 5.05 $

~53~

				2020
				Weighted average
				number of ordinary
				shares outstanding	Earnings per share
		Amount aftertax		(sharesinthousands)		(indollars)
Basic earnings per share
Profit from continuing
operations attributable to
ordinary shareholders		$	1,658,657	267,991	$	6.19
Loss from discontinued
operations	(		1,575)		(	0.01)
Profit attributable to ordinary
shareholders		$	1,657,082		$	6.18
Diluted earnings per share
Profit from continuing
operations attributable to
ordinary shareholders		$	1,658,657	267,991
Assumed conversion of all
dilutive potential ordinary
shares - employees’
compensation			-	379
Profit from continuing
operations attributable to
ordinary shareholders plus
assumed conversion of all
dilutive potential ordinary
shares			1,658,657	268,370	$	6.18
Loss from discontinued
operations	(		1,575)		(	0.01)
Profit attributable to ordinary
shareholders plus assumed
conversion of all dilutive
potential ordinary shares		$	1,657,082	268,370	$	6.17

(29) Supplemental cash flow information

A. Investing activities with partial cash payment are as follows:

		2021		2020
Acquisition of property, plant and equipment	$	2,337,929	$	2,841,566
Add: Opening balance of payable on equipment		61,144		35,719
Less: Ending balance of payable on equipment	(	73,068)	(	61,144)
Cash paid during the year	$	2,326,005	$	2,816,141

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7. RELATED PARTY TRANSACTIONS

(1) Parent and ultimate controlling party

CPF (incorporated in Thailand) indirectly held 39% of the Company’s equity shares. The remaining shares were held by the general public. CPG is the major shareholder of CPF.

(2) Names of related parties and relationship

Names of relatedparties Charoen Pokphand Foods Public Co., Ltd. (CPF) Charoen Pokphand Group Co., Ltd. (CPG) C.P. Consumer Products Company Limited C.P. Merchandising Company Limited Chia Tai Feedmill Pte. Ltd. Ta Chung Investment Co., Ltd. Chun Ta Investment Co., Ltd. Perfect Companion (Taiwan) Co., Ltd. Ningbo Beston Plastics Co., Ltd. Aviagen Incorporation Mu Da Egg Co. Fu Ding International Corporation Fu Ting Foods Co., Ltd. Li - Chun Farm Product Co., Ltd. Jih Ching Egg Co., Ltd. Shandong C.P. Livestock Co., Ltd. Chia Tai Aquaculture (Nantong) Co., Ltd. Chia Tai Investment Co., Ltd. (Formerly Chia Tai (China) Investment Co., Ltd.) Chia Tai Food (Suqian) Co., Ltd. Chia Tai Animal Husbandry Investment (Beijing) Co., Ltd. Chia Tai Electronic Commerce (Zhejiang) Co., Ltd. C.P. Premix (Nantong) Co., Ltd. Jiangsu C.T. & Suken Swine Co., Ltd. Jiangsu Huai Yin Chia Tai Co., Ltd. Pizhou Chia Tai Food Co., Ltd. Qingdao Chia Tai Agricultural Development Co., Ltd. Qingdao C.P. Swine Business Co., Ltd. Nantong Chia Tai Co., Ltd. Nantong Chia Tai Agriculture Development Co., Ltd. Xuzhou Chia Tai Feed Co., Ltd. Taizhou Chia Tai Feed Co., Ltd. Huaian C.P. Livestock Co., Ltd.

Relationship with theGroup

Ultimate parent company Other related party " " " " " " " " " " " " " " " " " " " " " " " " " " " " " "

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Names of related parties Relationship with the Group
----- End of picture text -----

Names of related parties	Relationship withthe Group
Fuzhou Da Fu Co., Ltd.	Other related party
Hung Peng-Da	"
Hung Yu-Chun	"
Huang Wei-I	"
Lu Yi-Feng	"
Lu Xiang-Da	"
Lu Pei-Lun	"
Lan Fu-Shi	"
Zhang Jian-Wen	"

(3) Significant related party transactions and balances

• A. Operating revenue

Sales of goods: Other related parties Less: Operating revenue from discontinued operations	2021 2020 403,608 $ 22,992 $ - 22,992) ( 403,608 $ - $	2020
		- $

Goods are sold based on the price lists in force and terms that would be available to third parties.

B. Purchases

Purchases of goods: Ultimate parent company Other related parties Less: Purchases from discontinued operations	2021 2020 41,593 $ 35,150 $ 202,482 40,144 - 19,764) ( 244,075 $ 55,530 $	2020
		55,530 $

Goods are purchased from related parties on normal commercial terms and conditions.

• C. Receivables from related parties

Other related parties Notes and accounts receivable:	December 31,2021 59,658 $	December 31,2020
		- $

The receivables from related parties arise mainly from sale transactions. The receivables are unsecured in nature and bear no interest. No allowance for uncollectible accounts was provided for receivables from related parties.

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D. Payables to related parties

Notes and accounts payable: Ultimate parent company Other related parties Other payables: Other related parties	December 31,2021 December 31,2020 3,115 $ - $ 29,451 1,273 1,616 - 34,182 $ 1,273 $

The payables to related parties arise mainly from purchase transactions. Other payables arise mainly from freight, processing fees and farm-member remuneration for joint collaboration for contractual breeding. The payables bear no interest.

E. Prepayments:

December31,2021 Other related parties - $	December31,2020
	185 $

The above prepayments pertain to the advance payment.

F. Property transactions

• (a) Acquisition of property, plant and equipment

In December 2021, the Board of Directors of Sheng Da Foods Co., Ltd. resolved to acquire land, buildings and ancillary facilities from a related party for a total consideration of $88,999 for the operational needs and expansion of production capacity. A payment of $20,000 was made in 2021.

• (b) On April 14, 2020, the Board of Directors of Rui Mu Foods Co., Ltd. resolved to dispose the land located at Daochang Section, Houbi District, Tainan City to other related party for the purpose of activating the idle assets due to suspension of the plan to establish a chicken manure processing plant. The total transaction amount and gain on disposal were $23,642 and $678, respectively. The payment arising from the disposal had been collected in May 2020.

• G. Rental income (shown as ‘Other income’)

Rental income: Other related parties	2021 722 $	2020
		722 $

The rental receivables are collected annually or monthly based on the contracts.

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• －

• H. Leasing arrangements lessee

• (a) The Company’s subsidiaries leases farm buildings and equipment from other related parties.

• (b) For the year ended December 31, 2021, the Group recognised rent expense amounting to $18,000. As of December 31, 2021, the outstanding balance was $0.

• I. Joint contractual breeding

• (a) The Company’s subsidiaries signed the joint contractual breeding agreements with other related parties to provide techniques for the husbandry management of layers, as well as farm buildings and equipment for the breeding.

• (b) For the year ended December 31, 2021, the farm-member remuneration for joint collaboration for contractual breeding recognised amounted to $39,950. As of December 31, 2021, the outstanding balance was $1,187.

• J. Technical service agreement

• (a) The Company signed a technical service agreement with CPG since 1996. CPG helps the Company to manufacture feeds, raise animals and to process meat products, and the Company pays compensation of THB12 million (net value) for the services annually. The commitment shall not be terminated except when any of the two parties would agree to end the agreement. For the years ended December 31, 2021 and 2020, the Company recognised technical service expenses amounting to $11,392 and $13,001, respectively. As of December 31, 2021 and 2020, the outstanding balances were approximately $0 and $55, respectively, shown as ‘other payables to related parties’.

• (b) The Company signed a technical service agreement with CPG at the end of 2015. CPG helps the Company to raise animals and provides consulting services of related technical skills, and the Company pays compensation of $700 for the services monthly. The contract is effective for 5 years. The contract term was extended to five years effective from the end of 2020. For the years ended December 31, 2021 and 2020, the Company recognised technical service expense amounting to $8,400 and $8,400, respectively. As of December 31, 2021 and 2020, the outstanding balances were $2,100 and $700, respectively, shown as ‘other payables to related parties’.

K. Trademark licensing agreement

The Company signed a trademark license agreement with CPG at the end of 2015. The contract authorises the Company to use ‘CP’ as trademark in the designated area (Republic of China). Royalties are paid monthly based on 1.5% of the net amount of sales. The contract is effective for 5 years. The contract term was extended to five years effective from the end of 2020. For the years ended December 31, 2021 and 2020, the Company recognised royalties amounting to $82,709 and $79,529, respectively. As of December 31, 2021 and 2020, the outstanding balances were $21,332 and $6,593, respectively, shown as ‘other payables to related parties’.

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(4) Key management compensation

		2021		2020
Salaries and other short-term employee benefits	$	195,503	$	194,470
Post-employment benefits		1,661		1,595
Total	$	197,164	$	196,065

8. PLEDGED ASSETS

The Group’s assets pledged as collateral are as follows:

Pledged assets Time deposits (shown as ‘Other current assets’) Property, plant and equipment Land Buildings and structures Construction in progress	December 31, December 31, 2021 2020 Purpose 9,650 $ 8,200 $ Guarantee deposit 1,069,003 979,811 Long-term borrowings 221,276 226,483 Long-term borrowings 1,192,933 621,642 Long-term borrowings 2,492,862 $ 1,836,136 $ Book value
	December 31, 2021 9,650 $ 1,069,003 221,276 1,192,933 2,492,862 $

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

(1) Contingencies

The Group subsequently invested to establish chicken farms in Hualien County starting from 2018, and had submitted an application to the Hualien County Government for approval based on the Group’s building and feeding project. However, the Hualien County Government issued a letter on July 10, 2020 to terminate the Group’s application for the building of farming facilities on agricultural land without taking into consideration the measures and goodwill that the Group took in order to reach consensus with local residents and resolve controversy. The Group has appointed lawyers and filed an appeal as administrative remedy. For the administrative appeal filed against the administrative action concerning the revocation of the permission letter to use the land in dispute, the Council of Agriculture of Executive Yuan revoked the aforesaid administrative action in accordance with the Appeal Resolution Letter Order No. Nong-Su-Zi-1090727273, dated January 12, 2021. On July 26, 2021, the Hualien County Government sent another letter alleging that the Group did not obtain permission for agricultural use in accordance with the regulations and revoking the permission in accordance with Article 117 of the Administrative Procedures Act. The Group has appointed a lawyer to file an appeal. As for the administrative appeal filed against the administrative action concerning the disapproval Jingzhong Section, Shoufeng Township, Hualien County, the Council of Agriculture of Executive Yuan revoked the aforesaid administrative action in accordance with the Appeal Resolution Letter Order No. Nong-Su-Zi-1090721271, dated January 12, 2021, and requested the Hualien County Government to take other legitimate actions. As of December 31, 2021, the related costs incurred by the Group amounted to $71,281, excluding the cost of land.

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(2)

10.

11.

12.

(1)

~60~

(2)

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Financial assets Financial assets measured at fair value through other comprehensive income Designation of equity instrument Financial assets at amortised cost Cash and cash equivalents Notes receivable (including related parties) Accounts receivable (including related parties) Other receivables Refundable deposits Other financial assets - current Financial liabilities Financial liabilities at amortised cost Short-term borrowings Short-term notes and bills payable Notes payable (including related parties) Accounts payable (including related parties) Other payables (including related parties) Long-term borrowings (including current portion) Lease liability	December 31,2021 2,575,015 $ 187,008 419,983 2,426,548 18,665 43,408 9,650 5,680,277 $ December31,2021 3,301,031 $ 1,039,203 515,448 872,393 837,678 7,369,500 13,935,253 $ 345,182 $	December 31,2020
		1,925,872 $ 247,679 280,767 1,903,391 13,495 49,402 47,934
		4,468,540 $
		December31,2020
		2,659,715 $ 599,426 600,078 747,557 745,595 4,728,500
		10,080,871 $
		321,097 $

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• i. The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the USD, HKD and CNY. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities and net investments in foreign operations.

• ii. Management has set up a policy to require the group to manage their foreign exchange risk against their functional currency.

• iii. The Group has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk.

• iv. - currency: CNY and HKD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

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Note: The functional currency of certain subsidiaries belonging to the Group is HKD. Thus, this information has to be considered when reporting.

• v. Total exchange gain, including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Group for the years ended December 31, 2021 and 2020 amounted to $31,326 and $23,713, respectively.

~63~

• vi. Analysis of foreign currency market risk arising from significant foreign exchange variation:

(Foreign currency : functional currency) Financial assets Monetary items USD NTD USD HKD CNY HKD Non-monetary item THB HKD THB NTD Financial liabilities Monetary items USD NTD EUR NTD (Foreign currency : functional currency) Financial assets Monetary items USD NTD USD HKD CNY HKD Non-monetary item THB HKD Financial liabilities Monetary item USD NTD EUR NTD	2021
	Sensitivityanalysis
	Degree of Effect on variation profit or loss 1% 3 $ 1% 31 1% 30 1% - $ 1% - 1% 3,240) ($ 1% 83) ( 2020	Effect on other comprehensive income
		- $ - - 16,334 $ 9,416 - $ -
	Sensitivityanalysis
	Degree of Effect on variation profit or loss 1% 31 $ 1% 978 1% 29 - 1% - $ 1% 2,153) ($ 1% 55) (	Effect on other comprehensive income
		- $ - - 19,259 $ - $ -

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• i. The Group is exposed to equity securities price risk because of investments held by the Group and classified on the consolidated balance sheet as financial assets at fair value through other comprehensive income. Please refer to Note 6(2).

• ii. For the Group s strategies for biological assets price risk, please refer to Note 6(5).

• iii. in equity securities comprise foreign listed stocks. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, other equity for the years ended December 31, 2021 and 2020 would have increased/decreased by $23,867 and $19,259, respectively, as a result of posttax gains/losses on equity securities classified as equity investment at fair value through other comprehensive income.

• i. -term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. During the years ended December 31, 2021 and 2020, variable rate were denominated in NTD.

• ii. The Group analyses its interest rate exposure on a dynamic basis. Various scenarios are simulated taking into consideration refinancing, renewal of existing positions, alternative financing and hedging. Based on these scenarios, the Group calculates the impact on profit and loss of a defined interest rate shift. For each simulation, the same interest rate shift is used for all currencies. The scenarios run only for liabilities that represent the major interest-bearing positions.

• iii. For the years ended December 31, 2021 and 2020, if interest rates on NTD-denominated borrowings at that date had been 1% higher/lower with all other variables held constant, post-tax profit for the years ended December 31, 2021 and 2020, would have been $58,956 and $37,828 lower/higher, respectively, mainly as a result of higher/lower interest expense on floating rate borrowings.

• i. Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is the contract cash flows when counterparties could not repay in full the accounts receivable based on the agreed terms.

• ii. The Group manages its managing and analysing the credit risk for each of their new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the

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credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

• iii. payments were past due over 17 days, there has been a significant increase in credit risk on that instrument since initial recognition. As a result, the Group should strengthen controls and make follow-up procedures.

• iv. The Group pays attention on specific customers whose payments were past due to confirm the debts and recognises the allowance for bad debts when there is a concern about default

• v. accounts receivable in accordance with customer types. The Group applies the simplified approach using loss rate methodology to estimate expected credit loss impairment under the provision matrix basis.

• vi. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights. For the years ended December 31, 2021 and 2020 -off financial assets that are still under recourse procedures and recoverd amounted to $1,645 and $720, respectively.

• vii. (i) The expected loss rate for well-reputed customers is 0.03%. As of December 31, 2021 and 2020, the total book value of accounts receivable and loss allowance amounted to $888,551 and $0; $705,100 and $0, respectively.

• (ii) The Group used the forecastability of the global economy to adjust historical and timely information to assess the default possibility of accounts receivable in . As of December 31, 2021 and 2020, the expected

• loss rate is as follows:

December 31, 2021 Expected loss rate Total book value Loss allowance December 31, 2020 Expected loss rate Total book value Loss allowance	GroupA 0%~100% 30,244 $ 15,595 GroupA 0%~100% 20,492 $ 6,327	GroupB 0.003%~10% 1,523,915 $ 567 GroupB 0.003%~10% 1,185,027 $ 901	Total
			1,554,159 $ 16,162 Total
			1,205,519 $ 7,228

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• viii. Movements in relation to the Group applying the simplified approach to provide loss allowance for notes and accounts receivable are as follows:

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• i. Cash flow forecasting is performed in the operating entities of the Group and aggregated requirements to ensure it has sufficient cash to meet operational needs. Such forecasting takes into t compliance and applicable external regulatory or legal requirements.

• ii. The table below analy -derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows.

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• maturity

(3)

• A. fair value are provided in Note 12(2) A.

• B. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

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• C. The related information on financial and non-financial instruments measured at fair value by level based on the nature, characteristics and risks of the assets and liabilities is as follows:

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(4) Other matter

The Group was able to maintain its normal operations during the Covid-19 outbreak and has implemented several preventive measures imposed by the government.The Group assessed that the pandemic has no significant impact on the Group's ability to continue as a going concern, assets impairment and financing risks.

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13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information

A. Loans to others: None.

• B. Provision of endorsements and guarantees to others during the year ended December 31, 2021: None.

• C. Holding of marketable securities at December 31, 2021 (not including subsidiaries, associates and joint ventures):

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Marketable securities Relationship with General ledger As of December 31, 2021
Securities held by Types Name the securities issuer account Number of shares Book value Ownership Fair value (Note 1) Footnote
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Securities held by	Types Name t	he securities issu	er account N	umber of shares	B	ookvalue O	wnership	Fair	value(Note 1) Footnote
The Company	Common share CHAROEN POKPHAND	(Note 2)	Financial assets at fair value	44,282,900	$	941,589	0.51%	$	941,589
	FOODS PUBLIC		through other comprehensive
	COMPANY LIMITED		income
Plenty Type Limited	Common share CHAROEN POKPHAND	(Note 2)	Financial assets at fair value	76,800,000		1,633,426	0.89%		1,633,426
(Cayman Islands)	FOODS PUBLIC		through other comprehensive
	COMPANY LIMITED		income

Note 1: The numbers filled in for market value are as follows:

(1) Where there is a quoted market price, the fair value is based on the closing price at the balance sheet date, the fair value of open-end funds is based on the net asset value at the balance sheet date.

(2) Where there is no quoted market price, this column is filled in with the book value per share for stocks or left blank for other instruments.

Note 2: Investee company accounted for as financial assets at fair value through other comprehensive income by the Company and Plenty Type Limited (Cayman Islands), which is ultimate parent entity of the Company

D. Acquisition or sale of the same security with the accumulated cost exceeding NT$300,000 or 20% of the Company’s paid-in capital during the year ended December 31, 2021:

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Investor	Marketable securities (Note 1)	General ledger account Counterparty (Note 2) Financial assets at fair value through other comprehensive income - Financial assets at fair value through profit or loss -	Balance as at January1,2021(Note 4)	Balance as at January1,2021(Note 4)	Acquisition(Note 3)	Acquisition(Note 3)	Number of shares	Selling price Bookvalue Gain (loss) on disposal - $ - $ 139,541 138,653 - $ 888 Disposal(Note 3)	Balance as at December 31,2021(Note 4)	Balance as at December 31,2021(Note 4)
			Number of shares	Amount	Number of shares	Amount			Number of shares	Amount
The Company The Company	CHAROEN POKPHAND FOODS PUBLIC COMPANY LIMITED CHAROEN POKPHAND FOODS PUBLIC COMPANY LIMITED		- -	- $ -	44,282,900 6,200,000	$ 999,544 138,653	- 6,200,000	- $ 139,541	44,282,900 -	999,544 $ -

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

Note 2: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank.

Note 3: Aggregate purchases and sales amounts should be calculated separately at their market values to verify whether they individually reach NT$300,000 or 20% of paid-in capital or more. Note 4: The original cost without considering amortisation and adjustments for fair values.

• E. Acquisition of real estate reaching NT$300,000 or 20% of paid-in capital or more during the year ended December 31, 2021: None.

F. Disposal of real estate reaching NT$300,000 or 20% of paid-in capital or more during the year ended December 31, 2021: None.

G. Purchases or sales of goods from or to related parties reaching NT$100,000 or 20% of paid-in capital or more during the year ended December 31, 2021:

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Purchaser/seller Counterparty	Relationship with the counterparty	Purchases (sales)	Percentage of total purchases Amount (sales) Transaction	Percentage of total purchases Amount (sales) Transaction	Credit term	Unit price Differences in transaction terms transactions	Credit term compared to	Percentage of total notes/accounts receivable Balance (payable) 41,266 $ 1.45% 48,034 1.69% 20,975 0.74% Notes/accounts receivable (payable)
The Company Rui Fu Foods Co., Ltd. The Company Rui Mu Foods Co., Ltd. Sheng Da Foods Co., Ltd. Li - Chun Farm Product Co., Ltd.	Subsidiary Subsidiary Other related parties	Sales revenue Sales revenue Sales revenue	$230,579 130,758 134,451	0.93% 0.53% 0.54%	60 days 90 days 35-90 days	The same as general transactions The same as general transactions The same as general transactions	None None None

H. Receivables from related parties reaching NT$100,000 or 20% of paid-in capital or more as at December 31, 2021: None.

• I. Trading in derivative instruments undertaken during the year ended December 31, 2021: None

J. Significant inter-company transactions during the year ended December 31, 2021:

The inter-company transactions below 1% of consolidated assets or revenue are not disclosed.

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(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China):

Investor	Investee	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held	as of December31,2021	as of December31,2021	Net profit (loss) of the investee	Investment income (loss) recognised by theCompany	Footnote
				Balance as of December 31, 2021	Balance as of December 31, 2020	Number of shares	Ownership (%)	Bookvalue
The Company The Company The Company The Company The Company The Company Plenty Type Limited (Cayman Islands) Rui Fu Foods Co., Ltd.	Plenty Type Limited (Cayman Islands) Charoen Pokphand (Taiwan) Corp., Ltd. Arbor Acres Taiwan Co., Ltd. Rui Mu Foods Co., Ltd. Rui Fu Foods Co., Ltd. Feng Sheng Livestock Co., Ltd. Chia Tai Lianyungang Co., Ltd. Sheng Da Foods Co., Ltd.	Cayman Islands Taiwan Taiwan Taiwan Taiwan Taiwan Hong Kong Taiwan	Management of producing and non-producing business investments Management of importing and exporting businesses Husbandry management of chickens to produce breeder chicken and daily chicken Husbandry management of layers and related business Husbandry management of layers and related business Electric livestock slaughter Management of producing and non-producing business investments Husbandry management of layers and related business	470,459 $ 20,086 60,131 193,860 357,000 100,000 19,910 HKD 120,000	620,471 $ 20,086 60,131 193,860 255,000 100,000 19,910 HKD 60,000	57,841,941 2,443,716 1,600,000 20,400,000 35,700,000 10,000,000 999,999 12,000,000	100.00 90.00 50.00 68.00 51.00 50.00 99.99 75.00	1,639,683 $ 46,027 85,650 155,442 280,850 100,160 3,810 90,497	56,505 $ 17,591 30,860 42,198) ( 76,130) ( 560 284) ( 30,621) (	56,505 $ 15,832 15,430 28,694) ( 38,826) ( 280 - -	Subsidiary (Note 1) Subsidiary Subsidiary Subsidiary Subsidiary (Note 1) Investment accounted for using equity method - joint ventures Indirectly owned subsidiary (Note 2) Indirectly owned subsidiary (Note 2)

Note 1: Including recognition of current profit of its investees.

Note 2: Current period income (loss) has been recognised by subsidiaries and indirectly owned subsidiaries.

(3) Information on investments in Mainland China

None.

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(4) Major shareholders information

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Shares
Name of major shareholders Name of shares held Ownership (%)
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Name of major shareholders N	ame of shares held Ow	nership (%)
Charoen Pokphand (Taiwan) Investment Ltd.,	26,802,733	10.00
Bermuda
Bright Excel Investments Limited, BVI	24,832,500	9.26
Giant Crown Investments Limited, BVI	16,946,479	6.32
Chun Ta Investment Co., Ltd.	15,176,525	5.66

14. OPERATING SEGMENT INFORMATION

(1) General information

Management has determined the reportable operating segments based on the reports reviewed by the Chief Operating Decision-Maker that are used to make strategic decision.

The Group’s Chief Operating Decision-Maker considers the business from a product type perspective. The main activities of the Group are feeds business, meat processing business, food processing business, management of importing and exporting animal medicine and husbandry business. The reportable segments are as follows:

• A. Feeds business: Manufacture and sale of animal feeds and wholesale of commodity;

• B. Meat processing business;

• C. Food processing business; and

• D. Husbandry business: Husbandry management of chickens to produce eggs and meat.

There is no material change in the basis for formation of entities and division of segments in the Group or in the measurement basis for segment information in this year.

(2) Measurement of segment information

The Chief Operating Decision-Maker evaluates the performance of the operating segments based on revenue and a measure of profit before income tax. This measurement basis excludes the effects of non-recurring expenditure from the operating segments such as goodwill impairment. The measurement also excludes the effects of unrealised gains/losses on financial instruments, interest expense and foreign exchange gain or loss, since the action are managed by central management department, operating department are not included.

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(3) Segment information

The segment information provided to the Chief Operating Decision-Maker for the reportable segments is as follows:

Revenues from third parties Revenues from the Group Total segment revenue Segment income (loss) Revenues from third parties (Note 1) Revenues from the Group Total segment revenue Segment income (loss) (Note 2)	Feeds $ 13,305,798 392,908 $13,698,706 $ 1,520,830 Feeds $ 11,745,355 263,174 $12,008,529 $1,754,985	Meatprocessing $ 5,583,139 43,840 $5,626,979 $ 209,751 Meatprocessing $ 5,424,238 43,139 $5,467,377 $285,592	Foodprocessing Husbandry Others $ 3,984,589 $ 1,887,696 $ 80,123 953 120,901 55,489 $3,985,542 $2,008,597 $135,612 $176,534 ($109,521) ($ 102,132) Foodprocessing Husbandry Others $ 3,812,560 $ 1,212,334 $ 81,539 639 75,948 48,318 $3,813,199 $ 1,288,282 $129,857 $231,142 ($50,694) ($ 121,750) 2021 2020	Total $ 24,841,345 614,091 $25,455,436 $1,695,462 Total $ 22,276,026 431,218 $22,707,244 $2,099,275

Note 1 ： The Feeds segment includes operating revenue from discontinued operations.

Note 2 ： The Feeds segment includes profit (loss) from discontinued operations.

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(4) Reconciliation for segment income (loss)

Sales between segments are carried out at arm’s length. The operating revenue from external customers reported to the Chief Operating Decision-Maker is measured in a manner consistent with that in the statement of comprehensive income.

A reconciliation of reportable segment income to the income before tax from continuing operations for the years ended December 31, 2021 and 2020 is provided as follows:

Reportable segment income	$	2021 1,797,594	$	2020 2,221,025
Other segment loss	(	102,132)	(	121,750)
Total segment		1,695,462		2,099,275
Interest expense	(	82,038)	(	76,789)
Foreign exchange gains, net		31,326		23,713
Income before tax from discontinued segment		-		3,000
Income before tax from continuing segment	$	1,644,750	$	2,049,199

(5) Information on products and services

Please refer to Note 14(3) for the related information.

(6) Geographical information

Geographical information for the years ended December 31, 2021 and 2020 is as follows:

2021 Revenues from third parties Revenues from the Group Total revenue Segment assets –non-current 2020 Revenues from third parties Revenues from the Group Total revenue Segment assets –non-current	Domestic 24,841,345 $ 614,091 25,455,436 $ 13,413,485 $ Domestic 22,189,635 $ 431,218 22,620,853 $ 11,749,469 $	Asia - $ - - $ - $ Asia 86,391 $ - 86,391 $ - $	Total
			24,841,345 $ 614,091
			25,455,436 $
			13,413,485 $
			Total
			22,276,026 $ 431,218
			22,707,244 $
			11,749,469 $

(7) Major customer information

For the years ended December 31, 2021 and 2020, the Group has no customers accounting for more than 10% of consolidated sales revenue. Therefore, no additional disclosure is required.

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