CHAROEN POKPHAND ENTERPRISE

(TAIWAN) CO., LTD.

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

REPORT

DECEMBER 31, 2021 AND 2020

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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INDEPENDENT AUDITORS’ REPORT

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

Opinion

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

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2021 and 2020, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our 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 parent company only financial statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

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

Key audit matters for the Company’s 2021 parent company only financial statements are stated as

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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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follows:

Evaluation of net realisable value of inventories

Description

Refer to Note 4(12) 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$1,728,997 thousand and NT$6,120 thousand, respectively.

The main activities of the Company 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 Company’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:

Based on our understanding of the Company’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.
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.

Measurement of biological assets

Description

Refer to Note 4(14) 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(6) for details of biological assets. As at December 31, 2021, the carrying amount of biological assets amounted to NT$1,919,539 thousand.

The Company’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

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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:

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

Responsibilities of management and those charged with governance for the parent company only financial statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and 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 parent company only financial statements, management is responsible for assessing the Company’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 Company 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 Company’s financial reporting process.

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Auditors’ responsibilities for the audit of the parent company only financial statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the 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 parent company only financial statements.

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

Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the disclosures, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

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

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

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

------------------------------------------------------------------------------------------------------------------------------------------------The accompanying parent company only 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 parent company only 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. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

Assets	December 31, 2021 AMOUNT % `$` `126,478` `1` `394,952` `2` `3,951` `-` `2,104,778` `10` `112,548` `1` `17,775` `-` `64` `-` `6,284` `-` `1,722,877` `8` `1,474,698` `7` `392,699` `2` `9,650` `-` `6,366,754` `31` `941,589` `4` `2,307,812` `11` `10,267,826` `49` `339,095` `2` `3,476` `-` `444,841` `2` `58,711` `-` `107,799` `1` `14,471,149` `69` `$` `20,837,903` `100`	December 31, 2020	December 31, 2020
	AMOUNT `$` `126,478` `394,952` `3,951` `2,104,778` `112,548` `17,775` `64` `6,284` `1,722,877` `1,474,698` `392,699` `9,650` `6,366,754` `941,589` `2,307,812` `10,267,826` `339,095` `3,476` `444,841` `58,711` `107,799` `14,471,149` `$` `20,837,903`	AMOUNT `$` `61,011` `264,934` `-` `1,700,313` `29,548` `12,081` `-` `-` `1,185,187` `1,285,888` `415,452` `47,934` `5,002,348` `-` `2,662,155` `9,237,343` `316,989` `171` `399,113` `52,208` `99,431` `12,767,410` `$` `17,769,758`	%
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 1210 Other receivables - related parties 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			`-` `2` `-` `10` `-` `-` `-` `-` `7` `7` `2` `-`
			`28`
			`-` `15` `52` `2` `-` `2` `-` `1`
			`72`
			`100`

(Continued)

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CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

Liabilities and Equity	December 31, 2021 AMOUNT % `$` `2,771,030` `13` `989,319` `5` `431,664` `2` `4,255` `-` `775,496` `4` `26,249` `-` `734,295` `3` `23,615` `-` `164,002` `1` `24,751` `-` `200,000` `1` `6,144,676` `29` `6,130,000` `29` `29,036` `-` `301,884` `2` `103,215` `1` `6,564,135` `32` `12,708,811` `61` `2,679,910` `13` `4,666` `-` `1,044,641` `5` `3,332,757` `16` `1,067,118` `5` `8,129,092` `39` `$` `20,837,903` `100`	December 31, 2020	December 31, 2020
	AMOUNT `$` `2,771,030` `989,319` `431,664` `4,255` `775,496` `26,249` `734,295` `23,615` `164,002` `24,751` `200,000` `6,144,676` `6,130,000` `29,036` `301,884` `103,215` `6,564,135` `12,708,811` `2,679,910` `4,666` `1,044,641` `3,332,757` `1,067,118` `8,129,092` `$` `20,837,903`	AMOUNT `$` `2,092,716` `599,426` `541,034` `470` `692,047` `9,884` `669,376` `7,348` `239,195` `19,730` `180,000` `5,051,226` `3,970,000` `18,822` `284,587` `140,137` `4,413,546` `9,464,772` `2,679,910` `3,957` `880,252` `3,332,669` `1,408,198` `8,304,986` `$` `17,769,758`	%
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 3XXX Total equity Significant contingent liabilities and unrecognised contract commitments Significant events after the balance sheet date 3X2X Total liabilities and equity			`12` `3` `3` `-` `4` `-` `4` `-` `1` `-` `1`
			`28`
			`22` `-` `2` `1`
			`25`
			`53`
			`15` `-` `5` `19` `8`
			`47`
			`100`

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

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CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. PARENT COMPANY ONLY 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(17) and 7
$
23,272,864
100
$
21,160,706
100
6(4)(23) and 7
(
20,036,192) (
86) (
17,766,264) (
84)
3,236,672
14
3,394,442
16
6(23) and 7
(
893,721) (
4) (
883,541) (
4)
(
652,493) (
3) (
584,406) (
3)
12(2)
(
1,252)
-
(
4,670)
-
(
1,547,466) (
7) (
1,472,617) (
7)
6(6)(18)
(
12,738)
-
26,843
-
1,676,468
7
1,948,668
9
6(19)
265
-
287
-
6(20) and 7
24,036
-
8,378
-
6(21)
49,590
-
78,872
-
6(22)
(
72,523)
-
(
68,827)
-
6(5)
20,527
-
99,153
1
21,895
-
117,863
1
1,698,363
7
2,066,531
10
6(24)
(
342,711) (
1) (
409,449) (
2)
$
1,355,652
6
$
1,657,082
8
6(13)
$
18,346
-
($
16,540)
-
6(2)
(
57,955) (
1)
-
-
6(5)
(
257,735) (
1) (
75,563)
-
6(24)
7,922
-
3,308
-
(
289,422) (
2) (
88,795)
-
6(5)
(
36,291)
-
(
115,489) (
1)
(
36,291)
-
(
115,489) (
1)
($
325,713) (
2) ($
204,284) (
1)
$
1,029,939
4
$
1,452,798
7
6(25)
$
5.06
$
6.18
$
5.05
$
6.17

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 expense, net
6900
Operating profit
Non-operating income and expenses
7100
Interest income
7010
Other income
7020
Other gains and losses
7050
Finance costs
7070
Share of profit 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
8200
Profit for the year
Other comprehensive income
Components of other comprehensive
income that will not be reclassified to
profit or loss
8311
Other comprehensive income, before tax,
actuarial gain (loss) on defined benefit
plan
8316
Unrealised loss on financial assets at fair
value through other comprehensive
income
8330
Share of other comprehensive loss of
associates and joint ventures accounted
for using equity method, components of
other comprehensive income that will not
be reclassified to profit or loss
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
Earnings per share (in dollars)
9750
Basic earnings per share
9850
Diluted earnings per share

Items	Year ended December 31 2021 2020 Notes AMOUNT % AMOUNT % 6(17) and 7 `$` `23,272,864` `100` `$` `21,160,706` `100` 6(4)(23) and 7 `(` `20,036,192) (` `86) (` `17,766,264) (` `84)` `3,236,672` `14` `3,394,442` `16` 6(23) and 7 `(` `893,721) (` `4) (` `883,541) (` `4)` `(` `652,493) (` `3) (` `584,406) (` `3)` 12(2) `(` `1,252)` `-` `(` `4,670)` `-` `(` `1,547,466) (` `7) (` `1,472,617) (` `7)` 6(6)(18) `(` `12,738)` `-` `26,843` `-` `1,676,468` `7` `1,948,668` `9` 6(19) `265` `-` `287` `-` 6(20) and 7 `24,036` `-` `8,378` `-` 6(21) `49,590` `-` `78,872` `-` 6(22) `(` `72,523)` `-` `(` `68,827)` `-` 6(5) `20,527` `-` `99,153` `1` `21,895` `-` `117,863` `1` `1,698,363` `7` `2,066,531` `10` 6(24) `(` `342,711) (` `1) (` `409,449) (` `2)` `$` `1,355,652` `6` `$` `1,657,082` `8` 6(13) `$` `18,346` `-` `($` `16,540)` `-` 6(2) `(` `57,955) (` `1)` `-` `-` 6(5) `(` `257,735) (` `1) (` `75,563)` `-` 6(24) `7,922` `-` `3,308` `-` `(` `289,422) (` `2) (` `88,795)` `-` 6(5) `(` `36,291)` `-` `(` `115,489) (` `1)` `(` `36,291)` `-` `(` `115,489) (` `1)` `($` `325,713) (` `2) ($` `204,284) (` `1)` `$` `1,029,939` `4` `$` `1,452,798` `7` 6(25) `$` `5.06` `$` `6.18` `$` `5.05` `$` `6.17`
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 expense, net 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7070 Share of profit 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 8200 Profit for the year Other comprehensive income Components of other comprehensive income that will not be reclassified to profit or loss 8311 Other comprehensive income, before tax, actuarial gain (loss) on defined benefit plan 8316 Unrealised loss on financial assets at fair value through other comprehensive income 8330 Share of other comprehensive loss of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 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 Earnings per share (in dollars) 9750 Basic earnings per share 9850 Diluted earnings per share

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

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CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. PARENT COMPANY ONLY 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 Change in ownership interests in subsidiaries 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 Balance at December 31, 2021	Notes		Share capital - common stock		Capital surplus		Retained	Earnings	Earnings	Other Equity Interest	Other Equity Interest	Other Equity Interest		Total equity
							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(16) 6(16)		`$ 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`

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

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CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Adjustments to reconcile profit (loss)
Expected credit impairment loss

Depreciation

Depreciation of right-of-use assets

Amortization

Interest income

Dividend income

Interest expense

Gain on reversal of loss on inventory market
price decline

Change in fair value less cost to sell of
biological assets

Share of profit or loss of associates and joint
ventures accounted for using equity method

Loss (gain) on disposal of property, plant and
equipment

Gain arising from lease modifications

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
Cash received for income tax refund
Net cash flows from operating activities Year ended December 31
Notes
2021
2020
$
1,698,363 $
2,066,531
12(2)
1,252
4,670
6(7)(23)
692,831
638,240
6(8)(23)
42,259
39,481
6(23)
4,531
4,085
6(19)
(
265 ) (
287 )
6(2)(20)
(
14,712 )
-
6(22)
72,523
68,827
6(4)
(
880 ) (
53,000 )
6(6)(18)
12,738 (
26,843 )
6(5)
(
20,527 ) (
99,153 )
6(21)
3,346 (
12,535 )
6(8)
- (
2 )
6(21)
(
888 )
-
(
130,018 )
36,187
(
3,951 )
-
(
405,717 )
7,488
(
83,000 ) (
3,053 )
(
5,694 ) (
4,945 )
(
64 )
-
(
536,810 )
306,626
(
247,276 ) (
85,150 )
22,606 (
152,237 )
(
109,370 )
85,093
3,785 (
350 )
83,449
50,651
16,365 (
5,494 )
43,907 (
3,303 )
16,267 (
15,402 )
(
18,576 ) (
18,806 )
1,136,474
2,827,319
(
418,869 ) (
315,389 )
6,314
-
723,919
2,511,930

(Continued)

~11~

CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. PARENT COMPANY ONLY 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 investment accounted for using the
equity method
Return of capital from investments accounted for
using the 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 for interest
Cash receipt for dividends
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
Cash payment for interest
Cash dividends paid to owners of parent

Payment of lease liabilities

Capital surplus - dividends not received by
shareholders
Net cash flows from (used in) financing
activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year

Cash and cash equivalents at end of year Year ended December 31
Notes
2021
2020
($
138,653 ) $
-
139,541
-
(
102,000 ) (
302,000 )
150,012
99,978
38,284 (
40,234 )
(
999,544 )
-
6(26)
(
1,713,296 ) (
2,110,402 )
6,368
15,615
6(9)
(
4,017 ) (
83 )
(
12,186 ) (
13,708 )
265
287
46,509
508,353
(
2,588,717 ) (
1,842,194 )
678,314
22,716
389,893 (
379,233 )
7,030,000
6,050,000
(
4,850,000 ) (
5,210,000 )
(
71,096 ) (
68,390 )
6(16)
(
1,205,959 ) (
1,071,964 )
6(8)
(
42,048 ) (
38,822 )
1,161
591
1,930,265 (
695,102 )
65,467 (
25,366 )
6(1)
61,011
86,377
6(1)
$
126,478 $
61,011

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

~12~

CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2021 AND 2020

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

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 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 parent company only financial statements were authorised for issuance by the Board of Directors on March 28, 2022.

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:

follows:
New Standards, Interpretations and Amendments	Effective date by International Accounting StandardsBoard
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 Company’s financial condition and financial performance based on the Company’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:

follows:
	Effective date by
	International
	Accounting
New Standards,Interpretations andAmendments	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—	January 1, 2022
cost of fulfilling a contract’
Annual improvements to IFRS Standards 2018–2020	January 1, 2022

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’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 as endorsed by the FSC are as follows:

==> picture [468 x 47] intentionally omitted <==

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

Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
----- End of picture text -----

endorsed by the FSC are as follows: New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
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 non-	January 1, 2023
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 Company’s financial condition and financial performance based on the Company’s assessment.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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

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(1) Compliance statement

The parent company only financial statements of the Company 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 parent company only 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 Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the parent company only financial statements are disclosed in Note 5.

(3) Foreign currency translation

A. The parent company only financial statements are presented in New Taiwan dollars, which is the Company’s functional currency.
B. 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.
(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

~15~

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’.

(4) 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.
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.
(5) 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.

(6) 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.

~16~

C. At initial recognition, the Company measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.
D. The Company recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

(7) 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 Company has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income.
(a) The objective of the Company’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.
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 Company measures the financial assets at fair value plus transaction costs. The Company 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 Company and the amount of the dividend can be measured reliably.

(8) Accounts and notes receivable
A. Accounts and notes receivable entitle the Company 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.
(9) Impairment of financial assets

For financial assets at amortised cost, at each reporting date, the Company 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 Company recognises the impairment provision for lifetime ECLs.

~17~

(10) Derecognition of financial assets

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

(11) 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.

(12) 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.

(13) Investments accounted for using equity method / subsidiaries and joint ventures

A. Subsidiaries and joint ventures are all entities (including structured entities) controlled by the Company. The Company controls an entity when the Company 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. Investments in subsidiaries and joint ventures are accounted for using equity method in these parent company only financial statements.
B. In the case that a subsidiary or a joint venture issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company’s ownership percentage of the subsidiary or the joint venture but maintains significant influence on the subsidiary or the joint venture, then ‘capital surplus’ and ‘investments accounted for using equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Company’s ownership percentage of the subsidiary or the joint venture, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the subsidiary or the joint venture are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.
C. Unrealised gains on transactions between the Company and its subsidiaries or joint ventures are eliminated. The accounting policies of the subsidiaries or joint ventures have been adjusted where necessary to ensure consistency with the policies adopted by the Company.
D. The Company’s share of its subsidiaries’ or joint ventures’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in a subsidiary or a joint venture equals or exceeds its interest in the subsidiary or the joint venture, the Company continues to recognise losses proportionate to its ownership.

~18~

E. Pursuant to the “Regulations Governing the Preparation of Financial Reports by Securities Issuers,” profit (loss) of the current period and other comprehensive income in the parent company only financial statements shall equal to the amount attributable to owners of the parent in the financial statements prepared with basis for consolidation. Owners’ equity in the parent company only financial statements shall equal to equity attributable to owners of the parent in the financial statements prepared with basis for consolidation.

(14) 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.

(15) 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 Company 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.

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

~19~

(16) 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 Company. For short-term leases or leases of low-value 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 Company 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.

(17) Intangible assets

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

(18) Impairment of non-financial assets

The Company 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. When the circumstances or reasons for recognising 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.

~20~

(19) 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.

(20) 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.

(21) Derecognition of financial liabilities

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

(22) 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.

B. Pensions

(a) Defined contribution plan

For defined contribution plan, 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 plan

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 Company in current period or prior period. The liability recognised in the balance sheet in respect of defined benefit pension plan 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 plan are recognised in other comprehensive income in the period in which they arise and are recorded as retained earnings.

~21~

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.

(23) 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 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.
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 Company’s balance sheet. However, the deferred tax is accounted 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 Company 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.

(24) 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.

~22~

(25) 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.

(26) Revenue recognition

A. Sales of goods

(a) The Company 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 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 Company 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 Company 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 Company does not adjust any of the transaction prices for the time value of money.

~23~

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

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’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 Company’s accounting policies

None.

(2) Critical accounting estimates and assumptions

A. Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Company must determine the net realisable value of inventories on balance sheet date using judgements and estimates. The Company 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 $1,722,877.

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 Company 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 Company 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 $1,919,539.

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash

Cash on hand and revolving funds Checking accounts Demand deposits Total	December31,2021 8,434 $ 981 117,063 126,478 $	December31,2020
		3,686 $ 1,334 55,991
		61,011 $

~24~

A. The Company 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 Company 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 Company 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’.

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

Items December31,2021 Non-current items: Equity instruments Listed stocks 999,544 $ Valuation adjustment 57,955) ( 941,589 $	December31,2020
	- $ -
	- $

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 Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income 46,364) ($ Dividend income recognised in profit or loss held at end of year 14,712 $	2020
	- $
	- $

B. The Company holds CPF’s shares, which are traded on the Thailand Stock Exchange. CPF is the ultimate parent company of the Group.
C. The Company 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 $941,589 at December 31, 2021.

~25~

(3) Notes and accounts receivable

		December	31, 2021		December	31, 2020
Notes receivable		$	394,952		$	264,934
Accounts receivable		$	2,112,356		$	1,706,639
Less: Allowance for uncollectible accounts	(		7,578)	(		6,326)
		$	2,104,778		$	1,700,313

A. The aging analysis of accounts receivable is as follows:

Current Up to 120 days 121 to 365 days Over one year	December31,2021 December 31, 2020 2,048,950 $ 1,674,797 $ 60,822 29,630 431 1,123 2,153 1,089 2,112,356 $ 1,706,639 $

The above ageing analysis was based on past due date.

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 $2,013,591.
C. As of December 31, 2021 and 2020, all the Company’s notes receivable were not past due.
D. The credit quality of accounts receivable was in the following category based on the Company’s Credit Quality Control Policy:

With guarantee Without guarantee	December31,2021 153,522 $ 1,958,834 2,112,356 $	December31,2020
		129,984 $ 1,576,655
		1,706,639 $

The Company holds commercial papers, real estate and deposits collateral as security 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 Company’s notes receivable were $394,952 and $264,934, respectively, while the amount that best represents the Company’s accounts receivable were $2,104,778 and $1,700,313, respectively.
F. Information relating to credit risk is provided in Note 12(2).

~26~

(4) Inventories

Raw materials Packing supplies Work in progress Finished goods Raw materials Packing supplies Work in progress Finished goods	Allowance for Cost valuation loss 1,039,258 $ - $ 26,940 - 26,805 - 635,994 6,120) ( 1,728,997 $ 6,120) ($ Allowance for Cost valuation loss 735,393 $ - $ 26,667 - 26,637 - 403,490 7,000) ( 1,192,187 $ 7,000) ($ December31,2021 December31,2020	Bookvalue 1,039,258 $ 26,940 26,805 629,874 1,722,877 $ Bookvalue 735,393 $ 26,667 26,637 396,490
		1,185,187 $

The cost of inventories recognised as expense for the year:

			2021			2020
Cost of goods sold		$	20,035,336		$	17,827,404
Gain on reversal of decline in market value	(		880)	(		53,000)
Others			1,736	(		8,140)
		$	20,036,192		$	17,766,264

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 and income from disposal of leftover and scraps.
C. The Company 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.

~27~

(5) Investments accounted for using equity method

A. Details of investments accounted for using equity method-subsidiaries and joint ventures are provided as follows:

	December	31, 2021	December	31, 2020
Plenty Type Limited (Cayman Islands)	$	1,639,683	$	2,027,906
Charoen Pokphand (Taiwan) Corp., Ltd.		46,027		40,862
Arbor Acres Taiwan Co., Ltd.		85,650		90,660
Rui Mu Foods Co., Ltd.		155,442		184,136
Rui Fu Foods Co., Ltd.		280,850		218,711
Feng Sheng Livestock Co., Ltd.		100,160		99,880
	$	2,307,812	$	2,662,155

B. Share of profit (loss) of subsidiaries and joint ventures accounted for using equity method:

		2021			2020
Plenty Type Limited (Cayman Islands)		56,505 $		$	116,048
Charoen Pokphand (Taiwan) Corp., Ltd.		15,832			11,970
Arbor Acres Taiwan Co., Ltd.		15,430			22,519
Rui Mu Foods Co., Ltd.	(	28,694)	(		26,326)
Rui Fu Foods Co., Ltd.	(	38,826)	(		24,938)
Feng Sheng Livestock Co., Ltd.		280	(		120)
		20,527 $		$	99,153

C. Share of other comprehensive income (loss) of subsidiaries accounted for using equity method:

Components of other comprehensive income that will not be reclassified to profit or loss

		2021		2020
Plenty Type Limited (Cayman Islands)	($	258,425)	($	75,598)
Charoen Pokphand (Taiwan) Corp., Ltd.		330	(	127)
Arbor Acres Taiwan Co., Ltd.		360		162
	($	257,735)	($	75,563)
Items may be subsequently reclassified to profit or loss
		2021		2020
Plenty Type Limited (Cayman Islands)	($	36,291)	($	115,489)

D. Details of the subsidiaries are provided in Note 4(3) in the Company’s consolidated financial statements for the year ended December 31, 2021.

~28~

(6) Biological assets

A. Biological assets

		December	31,2021		December	31,2020
Biological assets - current:
Consumable biological assets		$	1,268,038		$	1,067,953
Consumable biological assets - changes in
fair value less costs to sell			38,229			50,967
Bearer biological assets			284,425			237,880
Bearer biological assets - accumulated
depreciation	(		115,994)	(		70,912)
		$	1,474,698		$	1,285,888
Biological assets - non-current:
Bearer biological assets		$	531,928		$	488,467
Bearer biological assets - accumulated
depreciation	(		87,087)	(		89,354)
		$	444,841		$	399,113

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.

B. Movements of biological assets are as follows:

			2021			2020
At January 1		$	1,685,001		$	1,573,008
Purchases			1,599,328			1,097,062
Costs and expenses input			7,157,718			6,465,591
Sales	(		3,411,821)	(		3,056,190)
Gain (loss) on change in fair value less cost to sell	(		12,738)			26,843
Transfer to inventories	(		5,092,461)	(		4,420,137)
Others	(		5,488)	(		1,176)
At December 31		$	1,919,539		$	1,685,001

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.

~29~

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 cost of new-born animals, feed costs, 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. For the years ended December 31, 2021 and 2020, depreciation expense on biological assets amounted to $311,527 and $258,109, respectively.

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

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E. Financial risk management policies

The Company is exposed to commodity risks arising from changes in market prices of the chickens and swine. The Company 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 Company reviews the predictions of the prices of the agriculture products regularly, and considers such predictions in assessing financial risk.

~30~

(7) Property, plant and equipment

At January 1, 2021 Cost Accumulated depreciation and impairment 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 and impairment	Land 2,233,138 $ - 2,233,138 $ 2,233,138 $ 9,963 - 300,981 - 2,544,082 $ 2,544,082 $ - 2,544,082 $	Land improvements	Buildings and structures	Machinery and equipment	Transportation equipment	Leasehold improvements	Other equipment	Construction in progress and equipment to be inspected Total 1,933,606 $ 13,862,454 $ - 4,625,111) ( 1,933,606 $ 9,237,343 $ 1,933,606 $ 9,237,343 $ 1,391,972 1,733,028 - 9,714) ( 1,194,554) ( - - 692,831) ( 2,131,024 $ 10,267,826 $ 2,131,024 $ 15,294,244 $ - 5,026,418) ( 2,131,024 $ 10,267,826 $	Total
		172,336 $ 56,335) ( 116,001 $ 116,001 $ 12,671 - 47,122 16,624) ( 159,170 $ 229,134 $ 69,964) ( 159,170 $	3,496,707 $ 1,273,946) ( 2,222,761 $ 2,222,761 $ 86,228 5,226) ( 412,177 197,165) ( 2,518,775 $ 3,834,137 $ 1,315,362) ( 2,518,775 $	3,721,622 $ 2,137,907) ( 1,583,715 $ 1,583,715 $ 122,009 - 255,420 255,486) ( 1,705,658 $ 4,027,590 $ 2,321,932) ( 1,705,658 $	300,909 $ 146,187) ( 154,722 $ 154,722 $ 36,125 3,837) ( 37,383 45,587) ( 178,806 $ 357,413 $ 178,607) ( 178,806 $	1,014,946 $ 607,972) ( 406,974 $ 406,974 $ 16,844 - 5,863 88,249) ( 341,432 $ 1,017,348 $ 675,916) ( 341,432 $	989,190 $ 402,764) ( 586,426 $ 586,426 $ 57,216 651) ( 135,608 89,720) ( 688,879 $ 1,153,516 $ 464,637) ( 688,879 $
									10,267,826 $

~31~

At January 1, 2020 Cost Accumulated depreciation and impairment 2020 Opening net book amount as at January 1 Additions Disposals Reclassifications Depreciation Closing net book amount as at December 31 At December 31, 2020 Cost Accumulated depreciation and impairment	Land 1,976,636 $ - 1,976,636 $ 1,976,636 $ 9,230 - 247,272 - 2,233,138 $ 2,233,138 $ - 2,233,138 $	Land improvements	Buildings and structures	Machinery and equipment	Transportation equipment	Leasehold improvements	Other equipment	Construction in progress and equipment to be inspected Total 808,824 $ 11,923,262 $ - 4,170,639) ( 808,824 $ 7,752,623 $ 808,824 $ 7,752,623 $ 1,743,940 2,126,040 - 3,080) ( 619,158) ( - - 638,240) ( 1,933,606 $ 9,237,343 $ 1,933,606 $ 13,862,454 $ - 4,625,111) ( 1,933,606 $ 9,237,343 $	Total
		149,175 $ 43,092) ( 106,083 $ 106,083 $ 17,978 - 6,755 14,815) ( 116,001 $ 172,336 $ 56,335) ( 116,001 $	3,257,734 $ 1,145,774) ( 2,111,960 $ 2,111,960 $ 102,835 - 181,463 173,497) ( 2,222,761 $ 3,496,707 $ 1,273,946) ( 2,222,761 $	3,578,256 $ 1,960,598) ( 1,617,658 $ 1,617,658 $ 92,418 859) ( 120,820 246,322) ( 1,583,715 $ 3,721,622 $ 2,137,907) ( 1,583,715 $	261,488 $ 155,707) ( 105,781 $ 105,781 $ 67,164 2,221) ( 20,240 36,242) ( 154,722 $ 300,909 $ 146,187) ( 154,722 $	985,924 $ 528,620) ( 457,304 $ 457,304 $ 33,243 - 5,973 89,546) ( 406,974 $ 1,014,946 $ 607,972) ( 406,974 $	905,225 $ 336,848) ( 568,377 $ 568,377 $ 59,232 - 36,635 77,818) ( 586,426 $ 989,190 $ 402,764) ( 586,426 $
									9,237,343 $

~32~

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 Amount capitalised 12,550 $ Interest rate range 0.99%~1.04%	2020
	6,363 $
	0.99%~1.13%

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 Company held 129 parcels and 131 parcels of agricultural land, respectively. The carrying amounts of land registered under the title of others amounted to $755,059 and $752,645, respectively. The titles of these parcels of land are registered under the title of individuals, however, the Company has agreements with those individuals to pledge these agricultural land to the Company.
(8) Leasing arrangements - lessee
A. The Company 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 Other equipment Land Buildings Transportation equipment (Cargo Truck) Other equipment	December31,2021 Carrying amount 299,480 $ 28,706 10,909 339,095 $ 2021 Depreciationcharge 27,572 $ 7,885 - 6,802 42,259 $	December31,2020
		Carrying amount
		297,860 $ 9,506 9,623
		316,989 $
		2020
		Depreciation charge
		26,321 $ 6,045 65 7,050
		39,481 $

C. For the years ended December 31, 2021 and 2020, the additions to right-of-use assets were $64,365 and $15,070, respectively.

~33~

D. The Company has no significant profit or loss in relation to lease contracts for the years ended December 31, 2021 and 2020.
E. For the years ended December 31, 2021 and 2020, the Company’s total cash outflow for leases were $42,048 and $38,822, respectively.

(9) Intangible assets

Software

)Short-term borrowings At January 1 Cost Accumulated amortisation and At January 1 Additions Amortisation At December 31 At December 31 Cost Accumulated amortisation and Type ofborrowings Unsecured borrowings Letters of credit Type ofborrowings Unsecured borrowings Letters of credit	$ impairment ( $ $ ( $ $ impairment ( $ December31,2021 2,560,000 $ 211,030 2,771,030 $ December31,2020 1,930,000 $ 162,716 2,092,716 $		2021 2020 10,557 10,474 $ 10,386) 9,882) ( 171 592 $ 171 592 $ 4,017 83 712) 504) ( 3,476 171 $ 14,574 10,557 $ 11,098) 10,386) ( 3,476 171 $ Interestraterange Collateral 0.95%~1.10% None 0.94%~1.12% None Interestraterange Collateral 0.95%~1.10% None 0.64%~1.16% None

(10) Short-term borrowings

(11) Short-term notes and bills payable

		December31,2021	December31,2021		December31,2020	December31,2020
Commercial paper payable		$	990,000		$	600,000
Less: Unamortised discounts	(		681)	(		574)
		$	989,319		$	599,426
Interest rate range			0.14%~0.84%			0.28%~0.89%

~34~

The short-term notes and bills payable were guaranteed by certain financial institutions. - (12) Long term borrowings

==> picture [468 x 219] intentionally omitted <==

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

Interest rate
Type of borrowings Borrowing period range December 31, 2021
Secured loans 2020.11.12~2030.10.15 0.50%~1.00% $ 1,130,000
Unsecured credit loans 2017.9.6~2028.9.29 0.79%~1.25% 5,200,000
6,330,000
Less: Current portion ( 200,000)
$ 6,130,000
Interest rate
Type of borrowings Borrowing period range December 31, 2020
Secured loans 2020.11.12~2030.10.15 0.50%~1.00% $ 900,000
Unsecured credit loans 2017.9.6~2023.6.30 0.79%~1.25% 3,250,000
4,150,000
Less: Current portion ( 180,000)
$ 3,970,000
----- End of picture text -----

Information on collaterals pledged for long-term borrowings is provided in Note 8. (13) Pensions

A. Defined benefit plan

(a) The Company has defined benefit pension plan 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 contributes 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 would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions to cover the deficit by next March.

~35~

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

	December	31,2021	December	31,2020
Present value of defined benefit obligations	($	376,613)	($	420,022)
Fair value of plan assets		273,398		279,885
Net defined benefit liability	($	103,215)	($	140,137)

		Present value
		of defined			Fair value of		Net defined
	benefit obligations				planassets		benefitliability
2021
Balance at January 1	($	420,022)		$	279,885	($	140,137)
Current service cost	(	2,271)			-	(	2,271)
Interest (expense) income	(	1,210)			815	(	395)
	(	423,503)			280,700	(	142,803)
Remeasurements:
Return on plan assets
(excluding amounts
included in interest income
or expense)		-			4,247		4,247
Change in demographic
assumptions	(	532)			-	(	532)
Change in financial
assumptions		10,101			-		10,101
Experience adjustments		4,530			-		4,530
		14,099			4,247		18,346
Pension fund contribution		-			21,242		21,242
Paid pension		32,791	(		32,791)		-
Balance at December 31	($	376,613)		$	273,398	($	103,215)

~36~

		Present value
		of defined			Fair value of		Net defined
	benefit obligations				plan assets		benefit liability
2020
Balance at January 1	($	436,190)		$	293,788	($	142,402)
Current service cost	(	2,502)			-	(	2,502)
Interest (expense) income	(	2,741)			1,871	(	870)
	(	441,433)			295,659	(	145,774)
Remeasurements:
Return on plan assets
(excluding amounts
included in interest income
or expense)		-			9,801		9,801
Change in demographic
assumptions	(	60)			-	(	60)
Change in financial
assumptions	(	11,433)			-	(	11,433)
Experience adjustments	(	14,848)			-	(	14,848)
	(	26,341)			9,801	(	16,540)
Pension fund contribution		-			22,177		22,177
Paid pension		47,752	(		47,752)		-
Balance at December 31	($	420,022)		$	279,885	($	140,137)

(d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s 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-thecounter, 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 has no right to participate in managing and operating that fund and hence the Company is 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.

~37~

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

	2021	2020
Discount rate	0.65%	0.30%
Future salary increases	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% Decrease1% 2021 Effect on present value of defined benefit obligation 26,932) ($ 30,397 $ 2020 Effect on present value of defined benefit obligation 31,398) ($ 35,627 $ Discountrate	Increase1% Decrease 1% 29,661 $ 26,884) ($ 34,633 $ 31,194) ($ Future salary increases

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 plan of the Company for the year ending December 31, 2022 amount to $16,097.
(g) As of December 31, 2021, the weighted average duration of the retirement plan is 7 years.

B. Defined contribution plan

Effective July 1, 2005, the Company has established defined contribution pension plan (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 contributes 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 Company for the years ended December 31, 2021 and 2020 were $47,343 and $44,052, respectively.

~38~

(14) Share capital - common stocks

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 are no changes in the number of the Company’s ordinary shares outstanding.

(15) 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.

(16) 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 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.

~39~

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 (indollars) 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 (indollars)
			4 $

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

E. For the information relating to employees’ compensation and directors’ and supervisors’ remuneration, please refer to Note 6(23).

(17) Operating revenue

Revenue from contracts with customers	2021 23,272,864 $	2020
		21,160,706 $

A. Disaggregation of revenue from contracts with customers

The Company derives revenue from the transfer of goods at a point in time.

B. Contract liabilities

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

Contract liabilities: Contract liabilities - advance receipts	December31,2021 98 $	December31,2020
		- $

(18) Other income and expenses, net

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

(19)	Interest income Other income and expenses, net ( Interest income	2021 12,738) $ 2021 265 $	2020
			26,843 $
			2020
			287 $

~40~

(20) Other income

Other income
Other gains and losses 2021 Rental income 9,324 $ Dividend income 14,712 24,036 $ 2021 Gain on financial assets at fair value through profit or loss 888 $ Net foreign exchange gains 30,744 (Loss) gain on disposal of property, plant and equipment 3,346) ( Miscellaneous income 21,304 49,590 $	2020
	8,378 $ -
	8,378 $
	2020
	- $ 23,531 12,535 42,806
	78,872 $

(21) Other gains and losses

(22) Finance costs

Interest expense: Bank borrowings and lease liabilities	2021 2020 72,523 $ 68,827 $

(23) Expenses by nature

Employee benefit expense Wages and salaries Labor and health insurance Pension costs Directors’ remuneration Other personnel expenses (Note) Depreciation on fixed assets Depreciation on right-of- use assets Amortisation		2021	Total 1,675,111 $ 156,994 50,009 36,504 70,216 692,831 42,259 4,531		2020
	Operating cost 1,067,475 $ 116,763 31,547 - 62,918 626,140 34,443 3,958	Operating expenses 607,636 $ 40,231 18,462 36,504 7,298 66,691 7,816 573		Operating cost 1,058,411 $ 104,862 30,102 - 62,118 590,238 33,161 3,461	Operating expenses 551,220 $ 34,867 17,322 37,343 7,162 48,002 6,320 624	Total
						1,609,631 $ 139,729 47,424 37,343 69,280 638,240 39,481 4,085

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

A. As of December 31, 2021 and 2020, the Company had 2,193 and 2,229 employees, respectively, and had 5 directors for both years.
B. For the years ended December 31, 2021 and 2020, the average employee benefits were $892 and $839, and the average salary expenses were $766 and $724, respectively. The change in adjustment on average salary expenses was 5.80%.

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C. 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.
D. 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, was adjusted in profit or loss for 2021.

E. Information about employees’ compensation and directors’ and supervisors’ remuneration of the Company as resolved by Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.
F. The Company sets up the audit committee and therefore had no supervisors’ remuneration for the years ended December 31, 2021 and 2020.
G. The Company’s overall salary is positioned above the market levels to cultivate and attract outstanding talents. The Company takes into consideration its operating situation and refers to the Consumer Price Index, economic growth rate, national income, and market and industry salary levels to ensure a highly competitive salary structure to motivate and retain high performance talents. In addition to strictly complying with the Labor Standards Act of the local government, the Company also pays attention to the correlation and design rationalisation between the Company’s operating performance and employees’ salaries.
Directors’ remuneration is determined by the Board of Directors based on the pay levels of listed companies in the same industry and their contribution. Independent directors’ remuneration is determined based on the market pay levels. Managers’ salaries are highly correlated with the Company’s operating results and performance, and managers’ compensation and bonuses are determined based on their performance indicators every year.
Employees’ compensation includes monthly salaries and bonuses. Employees’ salary standards are determined based on their positions, education and work experience, professional expertise and market value. The base salaries and bonuses are determined in compliance with the Act of Gender Equality in Employment and are not different due to gender, religion, political stance and marital status, etc. The annual budget for salary adjustment is approximately 2% or more (depending on the Company’s operating results and performance) and the salaries are adjusted to be in line with the market levels and based on the principle of fairness. The employees’ bonuses are determined based on their positions and performance as encouragement. The vision is for

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employees to work as a team with the Company for mutual benefits and common prosperity to operate the business as a going concern.

(24) Income tax

A. Income tax expense

(a) Components of income tax expense:

			2021			2020
Current tax:
Current tax on profits for the year		$	336,027		$	381,691
Tax on undistributed surplus earnings			13,677			12,314
Prior year income tax overestimation	(		18,626)	(		1,055)
Total current tax			331,078			392,950
Deferred tax:
Origination and reversal of temporary
differences			11,633			16,499
Total deferred tax			11,633			16,499
Income tax expense		$	342,711		$	409,449

(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	$	3,669	($		3,308)
Reconciliation between income tax expense and	accounting profit
		2021			2020
Tax calculated based on profit before tax and	$	339,673		$	413,306
statutory tax rate
Expenses disallowed by tax regulation		792			354
Tax exempt income by tax regulation		7,195	(		29,812)
Change in assessment of realisation of
deferred tax assets		-			1,094
Prior year income tax overestimation	(	18,626)	(		1,055)
Tax on undistributed surplus earnings		13,677			12,314
Separate taxation (Repatriated Offshore
Funds)		-			13,248
Income tax expense	$	342,711		$	409,449

B. Reconciliation between income tax expense and accounting profit

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

		December	31,2021		December	31,2020
Temporary differences:
Accrued sales discounts		$	19,158		$	17,731
Provision for loss on spare parts			3,704			3,567
Pension expense in excess of the limit for
tax purpose			20,643			28,027
Provision for inventory valuation loss
and change in fair value of biological
assets	(		6,422)	(		8,793)
Unrealised foreign investment income	(		18,374)	(		7,073)
Unrealised exchange loss	(		317)	(		41)
Changes in fair value of financial assets at
fair value through other comprehensive
income			11,591			-
Others	(		308)	(		32)
		$	29,675		$	33,386
		December	31,2021		December	31, 2020
Deferred tax assets		$	58,711		$	52,208
Deferred tax liabilities	(		29,036)	(		18,822)
		$	29,675		$	33,386

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

			2021
Recognised	in profit or loss	($	11,633)	($	16,499)
Recognised	in other comprehensive income
(loss)		$	7,922	$	3,308

D. The Company’s income tax returns through 2019 have been assessed and approved by the Tax Authority.

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(25) Earnings per share

Earnings per share
Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares - employees’ compensation Basic earnings per share Profit attributable to ordinary shareholders of the parent Diluted earnings per share Profit attributable to ordinary shareholders of the parent Assumed conversion of all dilutive potential ordinary shares - employees’ compensation	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 Weighted average number of ordinary shares outstanding Amount after tax (shares in thousands) 1,657,082 $ 267,991 1,657,082 $ 267,991 - 379 1,657,082 $ 268,370 2021 2020	Earnings per share (indollars) 5.06 $ 5.05 $ Earnings per share (in dollars)
		6.18 $
		6.17 $

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(26) Supplemental cash flow information

Investing activities with partial cash payment are as follows:

			2021			2020
Acquisition of property, plant and equipment		$	1,733,028		$	2,126,040
Add: Opening balance of payable on equipment			50,220			34,582
Less: Ending balance of payable on equipment	(		69,952)	(		50,220)
Cash paid during the year		$	1,713,296		$	2,110,402

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.

(2) Names of related parties and relationship

hares were held by the general public. Names of related parties and relationship
Names of relatedparties	Relationship with theCompany
Charoen Pokphand Foods Public Co., Ltd. (CPF) Charoen Pokphand (Taiwan) Corp., Ltd. Arbor Acres Taiwan Co., Ltd. Rui Mu Foods Co., Ltd. Rui Fu Foods Co., Ltd. and its subsidiaries Sheng Da Foods Co., Ltd. Charoen Pokphand Group Co., Ltd. (CPG) C.P. Consumer Products Company Limited C.P. Merchandising Company Limited Ta Chung Investment Co., Ltd. Chun Ta Investment Co., Ltd. Perfect Companion (Taiwan) Co., Ltd. Hung Yu-Chun Lu Xiang-Da Lu Yi-Feng Lan Fu-Shi	Ultimate parent company Subsidiaries " " " " Other related parties " " " " " " " " "

hares were held by the general public.
Names of related parties and relationship

Names of relatedparties

Relationship with theCompany

Charoen Pokphand Foods Public Co., Ltd. (CPF)
Charoen Pokphand (Taiwan) Corp., Ltd.
Arbor Acres Taiwan Co., Ltd.
Rui Mu Foods Co., Ltd.
Rui Fu Foods Co., Ltd. and its subsidiaries
Sheng Da Foods Co., Ltd.
Charoen Pokphand Group Co., Ltd. (CPG)
C.P. Consumer Products Company Limited
C.P. Merchandising Company Limited
Ta Chung Investment Co., Ltd.
Chun Ta Investment Co., Ltd.
Perfect Companion (Taiwan) Co., Ltd.
Hung Yu-Chun
Lu Xiang-Da
Lu Yi-Feng
Lan Fu-Shi

Ultimate parent company
Subsidiaries
"
"
"
"
Other related parties
"
"
"
"
"
"
"
"
"

(3) Significant related party transactions and balances

A. Operating revenue

Sales of goods: Subsidiaries Other related parties	2021 393,861 $ 188,420 582,281 $	2020
		263,813 $ -
		263,813 $

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

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B. Purchases

Purchases of goods: Ultimate parent company Subsidiaries Other related parties	2021 2020 41,593 $ 35,150 $ 178,481 139,112 23,264 10,577 243,338 $ 184,839 $

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

C. Receivables from related parties

Subsidiaries Other related parties Other receivable: Subsidiaries Notes and accounts receivable:	December31,2021 95,141 $ 21,358 116,499 64 64 116,563 $	December31,2020
		29,548 $ -
		29,548
		-
		-
		29,548 $

The receivables from related parties arise mainly from sales transactions. The receivables are unsecured in nature and bear no interest. There are no provisions held against receivables from related parties.

D. Payables to related parties

Notes and accounts payable: Ultimate parent company Subsidiaries Other related parties Other payable: Subsidiaries	December31,2021 3,115 $ 24,342 3,047 30,504 183 183 30,687 $	December31,2020
		- $ 10,354 -
		10,354
		-
		-
		10,354 $

The payables to related parties arise mainly from purchase transactions. The payables bear no interest.

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E. Prepayments

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

December 31, 2021 December 31, 2020
Other related parties $ - $ 185
F. Rental income (shown as ‘Other income’)
Lessee 2021 2020
Subsidiaries $ 4,320 $ 1,800
Other related parties 86 86
$ 4,406 $ 1,886
----- End of picture text -----

F. Rental income (shown as ‘Other income’)

The rental receivables are collected annually based on the contracts.

G. 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 would 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 balance were approximately $0 and $55, respectively.
(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 for both years. As of December 31, 2021 and 2020, the outstanding balance were $2,100 and $700, respectively.

H. 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 balance were $21,332 and $6,593, respectively.

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(4) Key management compensation

Key management compensation
2021 Salaries and other short-term employee benefits 191,566 $ Post-employment benefits 1,661 Total 193,227 $	2020 190,533 $ 1,595
	192,128 $

8. PLEDGED ASSETS

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

Pledged assets Time deposits - shown as ‘Other current assets’ Land Construction in progress	December 31, December 31, 2021 2020 Purpose 9,650 $ 8,200 $ Guarantee deposit 862,987 862,987 Long-term borrowings 908,053 602,961 Long-term borrowings 1,780,690 $ 1,474,148 $ Bookvalue

9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT

COMMITMENTS

Other than those stated in Note 7, the significant commitments and contingent liabilities of the Company were as follows:

(1) As of December 31, 2021 and 2020, the Company had opened unused letters of credit for purchases of raw materials and machinery of $1,226,945 and $504,107, respectively.
(2) As of December 31, 2021 and 2020, the Company had several outstanding construction contracts and equipment purchase agreements amounting to $463,682 and $1,005,503, respectively, which will be paid on the basis of percentage of completion.
(3)The Company 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 Company’s application for the building of farming facilities on agricultural land without taking into consideration the measures and goodwill that the Company took in order to reach consensus with local residents and resolve controversy. The Company 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 Company did not

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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 Company has appointed a lawyer to file an appeal.. As of December 31, 2021, the related costs incurred by the Company amounted to $71,281, excluding the cost of land.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD

In February 2021, the Company acquired 4 tracts of land located at Dashulin Section, Taoyuan District, Taoyuan City from a third party for a cost of approximately $225,000. The Company plans to build a Taoyuan Processing Plant on the aforementioned location and expects to invest approximately $402,000 for the construction of plant and equipment.

12. OTHERS

(1) Capital risk management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital.

(2) Financial risk of financial instruments

A. Financial instruments by category

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 accounts receivable (including related parties) Refundable deposits Other financial assets - current	December31,2021 941,589 $ 126,478 398,903 2,217,326 17,839 39,299 9,650 3,751,084 $	December31,2020
		- $ 61,011 264,934 1,729,861 12,081 47,216 47,934
		2,163,037 $

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December 31, 2021 December 31, 2020

	December31,2021	December31,2020
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 accounts payable (including related parties) Long-term borrowings (including current portion) Lease liability	2,771,030 $ 989,319 435,919 801,745 757,910 6,330,000 12,085,923 $ 326,635 $	2,092,716 $ 599,426 541,504 701,931 676,724 4,150,000
		8,762,301 $
		304,317 $

B. Financial risk management policies
(a) The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimise potential adverse effects on the Company’s financial position and financial performance.
(b) Risk management is carried out by a central treasury department (Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close cooperation with the Company’s operating units.
C. Financial risks and degrees of financial risks
(a) Market risk

Foreign exchange risk

i. The Company operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with respect to the USD and HKD. 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 Company to manage its foreign exchange risk against its functional currency.
iii. The Company has certain investments in foreign operations, whose net assets are exposed to foreign currency translation risk.

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iv. The Company’s businesses involve some non-functional currency operations (the Company’s functional currency: NTD). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

Exchangerate (Foreign currency : functional currency) Financial assets Monetary items USD:NTD USD 12 27.63 Non-monetary item HKD:NTD HKD 461,193 3.56 THB:NTD THB 1,129,214 0.83 Financial liabilities Monetary items USD:NTD USD 11,020 27.73 EUR:NTD EUR 133 31.52 JPY:NTD JPY 5,085 0.24 Exchange rate (Foreign currency : functional currency) Financial assets Monetary items USD:NTD USD 110 28.43 Non-monetary item HKD:NTD HKD 559,667 3.62 Financial liabilities Monetary items USD:NTD USD 7,163 28.53 (inthousands) December31,2021 Foreign currency amount (inthousands) December 31, 2020 Foreign currency amount	December31,2021	December31,2021
			Book value (NTD)
			319 $ 1,639,683 941,589 305,575 $ 4,192 1,233
		Exchange rate 28.43 3.62 28.53	Book value (NTD)
			3,131 $ 2,027,906 204,346 $

v. Total exchange gain, including realised and unrealised, arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2021 and 2020 amounted to $30,744 and $23,531, respectively.

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

2021

	2021
(Foreign currency : functional currency) Financial assets Monetary item USD`：`NTD Non-monetary item HKD`：`NTD THB：NTD Financial liabilities Monetary items USD`：`NTD EUR：NTD JPY：NTD (Foreign currency : functional currency) Financial assets Monetary item USD`：`NTD Non-monetary item HKD`：`NTD Financial liabilities Monetary items USD`：`NTD	Sensitivityanalysis
	Degree of Effect on variation profit or loss `1%` 3 $ `1%` - `1%` - `1%` 3,056) ($ `1%` 42) ( `1%` 12) ( 2020	Effect on other comprehensive income
		- $ 16,397 9,416 - $ - -
	Sensitivityanalysis
	Degree of Effect on variation profit or loss `1%` 31 $ `1%` - `1%` 2,043) ($	Effect on other comprehensive income
		- $ 20,279 - $

Price risk

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

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ii. For the Company’s strategies for biological assets price risk, please refer to Note 6(6).
iii. The Company’s investment 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 would have increased/decreased by $7,533, as a result of post-tax gains/losses on equity securities classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

i. The Company’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Company 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 Company to fair value interest rate risk. During the years ended December 31, 2021 and 2020, the Company’s borrowings at variable rate were denominated in NTD.
ii. The Company 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 Company 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 $50,640 and $33,200 lower/higher, respectively, mainly as a result of higher/lower interest expense on floating rate borrowings.

(b) Credit risk

i. Credit risk refers to the risk of financial loss to the Company 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 Company manages its credit risk taking into consideration the entire Company’s concern. According to the Company’s credit policy, the Company is responsible for managing and analysing the credit risk for each of the new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the 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.

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iii. Based on the Company’s historical experience, if the contract 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 Company should strengthen controls and make followup procedures.
iv. The Company 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 based on the assessment of customers’ credit risk.
v. The Company classifies customers’ accounts receivable in accordance with customer types. The Company applies the simplified approach using loss rate methodology to estimate expected credit loss impairment under the provision matrix basis.
vi. The Company wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Company will continue executing the recourse procedures to secure their rights. For the years ended December 31, 2021 and 2020, the Company’s written-off financial assets that are still under recourse procedures 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 $945,392 and $0, and $696,006 and $0, respectively.
(ii) The Company used the forecastability of the global economy to adjust historical and timely information to assess the default possibility of accounts receivable in accordance with customers’ credit. 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% 20,900 $ 7,578 GroupA 0%~100% 20,492 $ 6,326	GroupB 0.003%~10% 1,258,612 $ - GroupB 0.003%~10% 1,019,690 $ -	Total
			1,279,512 $ 7,578 Total
			1,040,182 $ 6,326

Note: Customers are categorised into Group A and B based on their credit rating. The expected loss rate is assessed on an individual basis under each group.

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

		2021		2020
	Notes and accounts		Notes and accounts
	receivable (including		receivable (including
		related parties)		related parties)
At January 1	$	6,326	$	1,656
Provision for impairment loss		1,252		4,670
At December 31	$	7,578	$	6,326

The provision for impairment loss arising from customers’ contracts for the years ended December 31, 2021 and 2020 amounted to $1,252 and 4,670, respectively.

(c) Liquidity risk

i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs. Such forecasting takes into consideration the Company’s financial ratio targets, covenant compliance and applicable external regulatory or legal requirements.
ii. The table below analyses the Company’s non-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.

Non-derivative financial liabilities

Non-derivative financial liabilities
December 31, 2021 Short-term borrowings Short-term notes and bills payable Notes payable (including related parties) Accounts payable (including related parties) Other payables (including related parties) Lease liabilities Long-term borrowings (including current portion)	Less than 1year 2,771,030 $ 990,000 435,919 801,745 757,910 27,096 263,862	Between 1 and 5 years - $ - - - - 139,094 5,233,640	Over5 years
			- $ - - - - 185,464 1,016,414

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Non-derivative financial liabilities

Non-derivative financial liabilities
			Between 1	and
December 31, 2020	Less	than 1year	5 years			Over5 years
Short-term borrowings	$	2,092,716	$	-	$	-
Short-term notes and bills payable		600,000		-		-
Notes payable (including related		541,504		-		-
parties)
Accounts payable
(including related parties)		701,931		-		-
Other payables
(including related parties)		676,724		-		-
Lease liabilities		22,024	121,044			187,744
Long-term borrowings
(including current portion)		220,186	3,751,188			266,847

iii. The Company does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

(3) Fair value information

A. Details of the fair value of the Company’s financial assets and financial liabilities not measured at 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:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Company’s investment in listed stocks is included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Company’s investment in biological assets is included in Level 2.
Level 3: Unobservable inputs for the asset or liability.

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

==> picture [449 x 233] intentionally omitted <==

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

December 31, 2021 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value
measurements
Biological assets $ - $ 974,696 $ - $ 974,696
Financial assets at fair value
through other
comprehensive income:
Equity securities $ 941,589 $ - $ - $ 941,589
December 31, 2020 Level 1 Level 2 Level 3 Total
Assets
Recurring fair value
measurements
Biological assets $ - $ 828,736 $ - $ 828,736
----- End of picture text -----

D. The methods and assumptions of the Company used to measure fair value are as follows:
(a) The instruments the Company used quoted market prices as their fair values (that is, Level 1) are listed stocks, whose quoted market prices are based on the closing prices and which are classified as available-for-sale financial assets.
(b) The Company takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Company’s credit quality.
(c) Details of methods for measuring Level 2 - Biological assets are provided in Note 6(6).
E. For the years ended December 31, 2021 and 2020, there was no transfer between Level 1 and Level 2.
F. For the years ended December 31, 2021 and 2020, there was no transfer into or out from Level 3.

(4) Other matter

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

~58~

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
----- End of picture text -----

Securities held by	Types Name t	he securities issu	er account N	umber of shares	B	ook value 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:

~59~

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

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 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.	Relationship with the counterparty	Purchases Percentage of total purchases (sales) Amount (sales) Sales revenue $230,579 0.93% Sales revenue 130,758 0.53% Sales revenue 134,451 0.54% Transaction	Purchases Percentage of total purchases (sales) Amount (sales) Sales revenue $230,579 0.93% Sales revenue 130,758 0.53% Sales revenue 134,451 0.54% Transaction	Credit term	Unitprice Credit term Differences in transaction terms compared to third transactions	Unitprice Credit term Differences in transaction terms compared to third transactions	Percentage of total notes/accounts receivable Balance (payable) Notes/accounts receivable(payable)	Percentage of total notes/accounts receivable Balance (payable) Notes/accounts receivable(payable)
	Subsidiary Subsidiary Other related parties		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	41,266 $ 48,034 20,975	1.45% 1.69% 0.74%

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.

~61~

(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 December 31,2021	as of December 31,2021	Net profit (loss) of the investee	Investment income (loss) recognised by the Company	Footnote
				Balance as of December 31, 2021	Balance as of December 31, 2020	Number of shares	Ownership (%)	Book value
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 shareholder information

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Shares
Name of major shareholders Name of shares held Ownership (%)
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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

None

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CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. DETAILS OF ACCOUNTS RECEIVABLE DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Table 1

Table 1
Customer name			Amount	Note
Non-related parties:
A Customer		$	299,093
				The balance of each customer has not
Others			1,813,263	exceeded 5% of the accounts receivable
Less: Allowance for bad
debts	(		7,578)
		$	2,104,778
Related parties:
Charoen Pokphand (Taiwan)
Corp., Ltd.		$	18
Rui Fu Foods Co., Ltd.			41,266
Rui Mu Foods Co., Ltd.			48,034
Arbor Acres Taiwan Co., Ltd.			5,823
Hung Yu-Chun			4,736
Lu Xiang-Da			5,175
Lu Yi-Feng			5,104
Lan Fu-Shi			2,392
		$	112,548

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CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. DETAILS OF INVENTORIES

DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Table 2

Items Cost Materials and supplies 1,066,198 $ Work in progress 26,805 Finished goods 635,994 1,728,997 Less: Allowance for inventory valuation losses 6,120) ( 1,722,877 $	Netrealisable value Note 1,162,767 $ 34,080 685,714 1,882,561 - 1,882,561 $

CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. MOVEMENT SUMMARY OF INVESTMENTS ACCOUNTED FOR USING EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Table 3

Table 3
Name	Opening	balance	Additions(Deductions)		Cash dividends	Investment income(loss)	Exchange differences on translation of foreign financial statements	Loss on valuation of financial assets at fair value through other comprehensive income	Gains (losses) on remeasurements of defined benefit plan	Changes in capital surplus	Endingbalanc		e	Market valuep	price or er share	Pledged to others as collateral	Note
	Number of shares	Amount	Number of shares	Amount							Number of shares	Ownership (%)	Amount	Price (in NTD)	Totalprice
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.	81,218,564 2,443,716 1,600,000 20,400,000 25,500,000 10,000,000	2,027,906 $ 40,862 90,660 184,136 218,711 99,880	23,376,623) ( - - - 10,200,000 -	150,012) ($ - - - 102,000 - 48,012) ($	- $ 10,997) ( 20,800) ( - - - 31,797) ($	56,505 $ 15,832 15,430 28,694) ( 38,826) ( 280 20,527 $	36,291) ($ - - - - - 36,291) ($	258,425) ($ - - - - - 258,425) ($	- $ 330 360 - - - 690 $	- $ - - - 1,035) ( -	57,841,941 2,443,716 1,600,000 20,400,000 35,700,000 10,000,000	100% 90% 50% 68% 51% 50%	1,639,683 $ 46,027 85,650 155,442 280,850 100,160	- $ - - - -	1,639,683 $ 46,027 85,650 155,442 280,850 100,160	None None None None None
		2,662,155 $								1,035) ($			2,307,812 $		2,307,812 $

CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. DETAILS OF ACCOUNTS PAYABLE DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Table 4

Table 4
Supplier name Non-related parties: A Supplier B Supplier Others Related parties: Charoen Pokphand (Taiwan) Corp., Ltd. Arbor Acres Taiwan Co., Ltd. Rui Mu Foods Co., Ltd. Sheng Da Foods Co., Ltd. Charoen Pokphand Foods Public Company Limited C.P. Merchandising Company Limited	Amount 121,308 $ 76,311 577,877 775,496 $ 3,893 $ 12,134 1,845 2,215 3,115 3,047 26,249 $	Note
		The balance of each supplier has not exceeded 5% of the accounts payable

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CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. DETAILS OF OPERATING REVENUE FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Table 5

Table 5
Item	Quantity (Metric tons )		Amount
Animal feeds, cooked food	652,733	$	9,430,105
Agricultural livestock	125,552		9,851,740
Meat processing	27,039		3,985,542
Eggs	1,043		5,477
		$	23,272,864

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CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. DETAILS OF OPERATING COST FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Table 6

Item			Amount
Cost of goods sold
Raw materials
Raw materials at the beginning		$	735,393
Materials purchased during the year			16,583,092
Raw materials sold	(		1,503,447)
Scraps sold	(		7,549)
Materials reclassified as expenses	(		17,872)
Gain on physical inventory count of raw materials			2,607
Raw materials at the end	(		1,039,258)
			14,752,966
Indirect materials
Raw materials at the beginning			26,667
Materials purchased during the year			341,545
Raw materials sold	(		99)
Materials reclassified as expenses	(		6,811)
Gain on physical inventory count of raw materials			122
Raw materials at the end	(		26,940)
			334,484
Direct labor			878,759
Manufacturing overhead			2,277,602
Manufacturing Cost			18,243,811
Add: Work in progress at the beginning			1,660,671
Less: Work in progress reclassified as expenses and others	(		102)
Less: Work in progress at the end	(		1,908,115)
Finished goods cost			17,996,265
Add: Finished goods at the beginning			403,490
Add: Finished goods purchases for the year			825,785
Less: Finished goods reclassified as expenses	(		56,101)
Less: Scrapped finished goods sold	(		14)
Less: Loss on physical inventory count of finished goods sold	(		1,112)
Less: Loss on disposal of leftover of finished goods	(		519)
Less: Finished goods at the end	(		635,994)
			18,531,800
Less: Revenue from sales of by-product	(		10)
Add: Materials sold			1,503,546
Less: Loss on physical inventory count	(		1,617)
Add: Gain on reversal of decline in market value	(		880)
Add: Income from disposal of scraps			3,353
Operating costs		$	20,036,192

Note: Biological assets were included in work in progress.

CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. DETAILS OF MANUFACTURING OVERHEAD FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Table 7

Table 7
Item Wages and salaries Freight Advertisement expense Cost of service and technical service Traveling expense Storage fee Insurance expense Depreciation Fee expense Miscellaneous disbursements and repairs and maintenance expense Utilities expense and fuel fee Entertainment expense Postage expenses Other expenses	Description		Amount	Notes
			220,264 $ 29,800 315 15,103 11,707 15,818 174,941 660,583 43 234,113 418,352 2,790 4,119 489,654 2,277,602 $

CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. DETAILS OF OPERATING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2021

(Expressed in thousands of New Taiwan dollars)

Table 8

Table 8
Item Wages and salaries Freight Advertisement expense Cost of service and technical service Traveling expense Storage fee Non-deductible input VAT for dual- status business entities Insurance expense Depreciation Fee expense Miscellaneous disbursements and repairs and maintenance expense Utilities expense and fuel fee Entertainment expense Postage expenses Other expenses	Selling and marketing expenses 243,100 $ 373,528 7,051 43 38,837 59,394 28,268 23,767 49,980 16,490 12,122 13,748 6,404 4,248 16,741 893,721 $	General and administrative expenses 419,502 $ 222 572 112,446 12,977 - 3,602 32,359 24,527 250 10,127 3,844 3,277 4,300 24,488 652,493 $	Total 662,602 $ 373,750 7,623 112,489 51,814 59,394 31,870 56,126 74,507 16,740 22,249 17,592 9,681 8,548 41,229 1,546,214 $	Notes

AI assistant

CPE — Audit Report / Information 2021

51746_rns_2021-12-30_dd1fe942-edca-4e88-b06f-9952648b9811.pdf

CHAROEN POKPHAND ENTERPRISE

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND INDEPENDENT AUDITORS’

INDEPENDENT AUDITORS’ REPORT

Opinion

Basis for opinion

Key audit matters

follows:

Evaluation of net realisable value of inventories

Description

How our audit addressed the matter

Measurement of biological assets

Description

How our audit addressed the matter

Responsibilities of management and those charged with governance for the parent company only financial statements

Auditors’ responsibilities for the audit of the parent company only financial statements

CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2021 AND 2020

CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. PARENT COMPANY ONLY BALANCE SHEETS DECEMBER 31, 2021 AND 2020

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

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

CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2021 AND 2020

CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 2021 AND 2020

CHAROEN POKPHAND ENTERPRISE (TAIWAN) CO., LTD. NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2021 AND 2020

1. HISTORY AND ORGANISATION

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

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

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(3) Foreign currency translation

(10) Derecognition of financial assets

(11) Operating leases (lessor)

(13) Investments accounted for using equity method / subsidiaries and joint ventures

(14) Biological assets

(15) Property, plant and equipment

(17) Intangible assets

(18) Impairment of non-financial assets

(19) Borrowings

(20) Notes and accounts payable

(21) Derecognition of financial liabilities

(22) Employee benefits

B. Pensions

(b) Defined benefit plan

(23) Income tax

(24) Share capital

(25) Dividends

(26) Revenue recognition

A. Sales of goods

B. Financing components

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

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

(2) Critical accounting estimates and assumptions

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash

(3) Notes and accounts receivable

(4) Inventories

(5) Investments accounted for using equity method

(6) Biological assets

A. Biological assets

E. Financial risk management policies

(7) Property, plant and equipment

(9) Intangible assets

Software

(10) Short-term borrowings

(11) Short-term notes and bills payable

A. Defined benefit plan

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

B. Defined contribution plan

(14) Share capital - common stocks

(15) Capital surplus

(16) Retained earnings

(17) Operating revenue

(18) Other income and expenses, net

(20) Other income

(21) Other gains and losses

(22) Finance costs

(23) Expenses by nature

CPE Audit Report / Information 2021