DE LICACY - Annual Report 2020 | FinancialReports.eu

Stock Number ： 1464

De Licacy Industrial Co., Ltd..and Subsidiaries

Consolidated Financial Statement for the year ended December 31, 2020 and 2019 and independent Auditors’ Report

Address: No. 240 San Sher Li, Shin Shih District, Tainan City Tel: (06)599-2866

§CONTENTS§

		Financial Report
ITEMS	Page	Note No
1. Cover	1	-
2. Directory	2	-
3. Statement of consolidated financial report of related enterprises	3	-
4. Lndependent Auditors’ report	4`～`7	-
5. Consolidated balance sheet	8	-
6. Consolidated Statements of compresensive Income	9`～`10	-
7. Consolidated Statement of changes in Equity	11	-
8. Consolidated statement of cash flows	12`～`13	-
9. Notes to the consolidated financial statments
(1) Company history	14	1
(2) The date and procedures for passing the financial report	14	2
(3) Application of newly issued and revised standards and	14`～`16	3
interpretations
(4) Summary explanation of major accounting policies	16`～`29	4
(5) Major sources of uncertainty in major accounting	29	5
judgments, estimates and assumptions
(6) Explanation of important accounting items	30`～`83`，`110	6-36
(7) Related party transactions	83`～`90	37
(8) Pledged assets	91	38
(9) Significant contingent liabilities and unrecognized	91	39
contractual commitments
(10) Major disaster losses	-	-
(11) Significant post-period events	-	-
(12) Other	91`～`93	40-41
(13) Matters disclosed in the notes
1. Information about major transactions	94`，`97`～`102	42
	`，`106`～`108
2. Information about reinvestment business	94`，`103	42
3. Mainland Investment Information	94`～`95`，`104`～`105	42
4. Major Shareholder Information	95`，`109	42
(14) Departmental Information	95`～`96	43

Statement of Financial Report on Consolidation of Related Enterprises

For the year ended December 31, 2020, pursuant to the “Compilation Standards for the Consolidated Financial Statements of the Affiliated Enterprises and the Relationship Report of the Consolidated Business Report of Affiliated Enterprises”, the Company is that is required to be included in the consolidated financial statements of affiliates, is the same as the company required to be included in the consolidated financial statements under International Financial Reporting Standards 10, and if relevant information that should be disclosed in the consolidated financial report of the affiliated company has been disclosed in the former consolidated financial report of the parent-subsidiary company. Separately prepare the consolidated financial report of the related companies.

We hereby declare all details.

Company Name: De Licacy Industrial Co., Ltd. Chairman: Yeh, Chia-Ming

Date: 19 March 2021

Lndependent Auditors’ Report Dear the Board of Directors and Shareholders of De Licacy Industrial Co., Ltd.

Opinion

We have audited the accompanying financial statements of De Licacy Industrial Co., Ltd and its subsidiaries (the “De Licacy Group”), which comprise the consolidated balance sheets as of December 31, 2020 and 2019, and the consolidated statements of comprehensive income, consolidated changes in equity and consolidated cash flows for the years then ended, and the notes to the financial statements, including a summary of significant accounting policies.

In our opinion, which is based on our and other accountants’ auditing results (please refer other matters section) and accompanying consolidated financial statements present fairly, in all material respects, the financial position of the De Licacy Group as of December 31, 2020 and 2019, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards (“IFRS”), International Accounting Standards (“IAS”), Interpretations of IFRS (“IFRIC”), and Interpretations of IAS (“SIC”) endorsed by the Financial Supervisory Commission (“FSC”) of Taiwan, the Republic of China (“ROC”).

Basis of Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the ROC. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Corporation in accordance with The Norm of Professional Ethics for Certified Public Accountant of the ROC, 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 Matter

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

The descriptions of the key audit matter of the 2020 consolidated financial statements of the De Licacy Group are as follows:

As stated in Note 4.7 Inventories, Note 5 Impairment loss of Inventories, and Note 11 Inventories of the Consolidated Financial Statements, the amount of inventories as of December 31, 2020 amounted to NT$3,210,797,000 (hereinafter referred to as "Inventories"), accounting for 18% of the total consolidated assets.

Because the carrying amount of inventories is material to the consolidated financial statements, and the evaluation of doubtful and obsolete inventories involves significant

management judgment, the evaluation of inventory doubtfulness is considered a critical review.

Due to the book value of inventory is significant to the overall consolidated financial reports, and the evaluation of dull and obsolete inventory involves significant judgment of the management, the evaluation of dull inventory is listed as a key audit item.

We have reviewed the reasonableness of the assessment of inventory obsolescence as follows.

(1) To understand and evaluate the effectiveness of the design and implementation of the inventory internal control system.
(2) To evaluate the aging of inventories at the end of the year and verify the correctness of the ageing of inventories on a sample basis, and then recalculate the appropriateness of the provision for inventory doubtfulness loss.
(3) Conduct inventory stocktaking at the end of the year to confirm and evaluate whether the inventory is obsolete or damaged.

Other Matters

The consolodated financial statements included in the consolidated financial statements of Deloitte Touche Tohmatsu, Inc. and its investment in New Premium Enterprise Co., Ltd. Accordingly, our opinion on the consolidated financial statements referred to above, which relates to the amount of the aforementioned investment and its comprehensive income and loss, was based on the audited reports of other auditors. The above investments accounted for by the equity method amounted to $46,459,000 and $96,773,000 as of December 31, 2020 and 2019, respectively, representing less than 1% and 1% of the total consolidated assets The consolidated loss recognized under the equity method amounted to $50,314,000 and $28,489,000 for the years ended December 31, 2020 and 2019, respectively, which accounted for (22%) and (6%) of the consolidated total profit or loss.

De Licacy Industrial Co., Ltd. has prepared its individual financial statements for the years ended December 31, 2020 and 2019, and we have issued an unqualified audit report, with additional qualifications for refernce.

Management's and Governance's Responsibility for the Consolidated Financial Statements

Management's responsibility is to prepare consolidated financial statements in conformity with the Guidelines Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, and Interpretations and Interpretations issued by the Financial Supervisory Commission, and to maintain such internal control relevant to the preparation of consolidated financial statements as is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management's responsibility also includes assessing the ability of the Group to continue as a going concern, the

disclosure of related matters, and the adoption of the going concern basis of accounting, unless management intends to liquidate the Group or cease operations, or there is no practical alternative to liquidation or discontinuation of operations.

The governance unit (Audit Committee) of the Group has the responsibility for overseeing the financial reporting process.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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 auditing standards generally accepted in the ROC 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 financial statements.

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

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

achieves fair presentation.

We have obtained sufficient and appropriate auditing evidence of the financial information of the constituent entities of the Group to express our opinions on the consolidated financial statements. We are responsible for the guidance, supervision and execution of the Group's audits and we are responsible for providing auditing opinions with the Group.

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 2020 financial statements and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Chao-Chin Yang and Chi-Jen Lee.

Financial Supervisory Commission Securities and Futures Commission Autnorized Authorized No. No. Jin-Kuan-Chen-Sheni-Tzu No. Tai-Tsai-Cheng-6-Tzu No. 0920123784 1060023872

Date: 19 March 2021

Stock Number ： 1464

De Licacy Industrial Co., Ltd.and Subsidiaries Consolidated Balance Sheets

The Years Ended December 31, 2020 and 2019

(In thousands of New Taiwan Dollars)

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December 31 December 31
2020 2019
Code Assets Amount ％ Amount ％
Current assets
1100 Cash and cash equivalents (Notes 4 and 6) $ 1,223,480 7 $ 1,343,347 7
1110 Financial assets at fair value through profit and loss- (Notes 4 and 7) 64,704 - 61,908 -
1120 Financial assets at fair value through other comprehensive gains and losses-current (notes
4 and 8) 38,979 - - -
1136 Financial assets at amortized cost-current (Notes 4, 9 and 38) 2,816,902 16 2,449,905 13
1150 Notes receivable (Notes 4, 10 and 28) 79,586 - 177,969 1
1160 Notes receivable-related parties (Notes 4, 10, 28 and 37) 24,845 - - -
1170 Net accounts receivable (Notes 4, 10 and 28) 1,614,862 9 1,801,429 10
1180 Accounts receivable-net amount of related parties (Notes 4, 28 and 37) 147,303 1 159,252 1
1200 Other receivables (Note 10) 116,078 1 204,263 1
1210 Other receivables-related parties (Note 37) 114,870 1 257,459 1
130X Inventory (Notes 4, 5 and 11) 3,210,797 18 3,350,147 18
1410 Prepayments (Note 19) 156,743 1 200,598 1
1479 Other current assets (Notes 20 and 30) 561,533 3 728,140 4
11XX Total current assets 10,170,682 57 10,734,417 57
Non-current assets
1517 Financial assets measured at fair value through other comprehensive gains and
losses-non-current (Notes 4 and 8) 120,056 1 111,010 1
1535 Financial assets measured at amortized cost-non-current (Notes 4 and 9) 27,725 - 25,229 -
1550 Investments using the equity method (Notes 4 and 13) 793,054 5 727,795 4
1600 Property, plant and equipment (Notes 4, 14, 37 and 38) 5,922,156 33 6,279,836 34
1755 Right-of-use assets (Notes 4, 15 and 38) 370,567 2 451,968 2
1760 Investment properties (Notes 4, 16 and 38) 65,071 - 64,716 -
1805 Goodwill (Notes 4 and 17) 12,996 - 12,444 -
1821 Other intangible assets (Notes 4 and 18) 15,423 - 17,294 -
1840 Deferred tax assets (Notes 4 and 30) 283,407 2 175,568 1
1920 Deposited margin (Note 4) 17,082 - 21,643 -
1975 Net confirmed welfare assets-non-current (Notes 4 and 26) 5,476 - - -
1990 Other non-current assets (note 20) 43,735 - 161,728 1
15XX Total non-current assets 7,676,748 43 8,049,231 43
1XXX Total assets $ 17,847,430 100 $ 18,783,648 100
CODE Liabilities and Equity
Current liabilities
2100 Short-term loans (note 21 and 38) $ 6,400,957 36 $ 5,270,282 28
2110 Short-term notes payable (Note 21) 709,501 4 429,790 2
2120 Financial liabilities measured at fair value through profit and loss-current (notes 4 and 7) 20,927 - 2,462 -
2150 Notes payable (Note 22) 72,165 - 145,447 1
2160 Notes payable-related parties (Note 37) 32,206 - - -
2170 Accounts payable (Note 22) 650,938 4 651,628 4
2180 Accounts payable-related parties (Note 37) 98,596 - 139,678 1
2219 Other payables (note 23) 498,196 3 669,316 4
2220 Other payables-related parties (Note 37) 183,505 1 248,464 1
2230 Current income tax liabilities (Notes 4 and 30) 5,814 - 14,758 -
2280 Lease liabilities-current (Notes 4 and 15) 27,739 - 46,679 -
2322 Long-term loans due within one year (Notes 21 and 38) 282,952 2 1,174,746 6
2365 Refund liabilities-current (notes 4 and 25) 3,705 - 6,523 -
2399 Other current liabilities (Note 28) 121,343 1 136,918 1
21XX Total current liabilities 9,108,544 51 8,936,691 48
Non-current liabilities
2541 Long-term bank loans (Notes 21 and 38) 3,181,005 18 3,372,293 18
2580 Lease liabilities-non-current (Notes 4 and 15) 14,435 - 58,701 1
2570 Deferred tax liabilities (Notes 4 and 30) 36,823 - 53,135 -
2630 Non-current deferred income (Notes 4 and 24) 49,376 - 34,853 -
2640 Net confirmed benefit liabilities-non-current (Notes 4 and 26) - - 55,544 -
2645 Deposit margin 2,464 - 4,250 -
25XX Total non-current liabilities 3,284,103 18 3,578,776 19
2XXX Total liabilities 12,392,647 69 12,515,467 67
Equity attribuSchedule to the owners of the company (Note 27)
3100 Stocks
3110 Common stocks 3,845,657 22 3,845,657 20
3200 Capital reserve 791,558 4 942,169 5
Retained surplus
3310 Legal surplus reserve 283,732 2 228,353 1
3320 Special reserve 401,956 2 293,042 2
3350 Unappropriated earnings ( 162,083 ) ( 1 ) 578,530 3
3300 Total retained earnings 523,605 3 1,099,925 6
3400 Other equities ( 456,503 ) ( 2 ) ( 401,956 ) ( 2 )
3500 Treasury stocks (note 4) - - ( 12,681 ) -
31XX Total equity of company owners 4,704,317 27 5,473,114 29
36XX Non-controlling interests (note 27) 750,466 4 795,067 4
3XXX Total equity 5,454,783 31 6,268,181 33
Total $ 17,847,430 100 $ 18,783,648 100
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The accompanying notes are an integral part of the individual financial statements. (Please refer to the auditors’ report of Deloitte and Touche on March 19, 2021)

Chairman: Chia-Min Yeh, Manager:Wei-Li Yeh, Accounting Manager; Yi-nung-Yu

De Licacy Industrial Co., Ltd.and Subsidiaries Consolidated Statements of compresensive Income For the Years Ended December 31 of 2020 and 2019

(In thousands of New Taiwan Dollars) (Except Earnings (net loss) Per Share)

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2020 2019
Code Amount ％ Amount ％
Operating income (Note 4, 28 and 37)
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4100 Net sales revenue 4800 Other operating income 4000 Total operating income Operating costs (Notes 11, 26, 29 and 37) 5110 Cost of goods sold 5900 Gross Operating Income 5910 Unrealized sales benefits (Note 4) ( 5950 Gross realized operating income Operating expenses (Note 10, 26 and 29) 6100 Marketing expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit loss 6000 Total operating expenses 6500 Net other income and expenses (notes 29 and 37) ( 6900 Operating income Non-operating income and expenses (Notes 4, 7, 16, 29 and 37) 7100 Interest income 7190 Other income 7020 Other benefits and losses ( 7050 Financial costs ( 7060 Share of losses of affiliated companies using the equity method ( 7000 Total non-operating income and expenses ( 7900 Net profit before tax (net loss) ( 7950 Income tax expense (benefits) (Notes 4 and 30) ( 8200 Net profit (net loss) for the year (	$ 8,407,460 187,199 8,594,659 7,350,952 1,243,707 26) 1,243,681 471,947 490,694 208,459 60,043 1,231,143 9,383) 3,155 42,886 204,648 281,461 ) ( 177,717 ) ( 83,313) ( 294,957) ( 291,802 ) ( 85,169) ( 206,633) (	98 2 100 86 14 - 14 5 6 2 1 14 - - - 2 3 ) ( 2 ) ( 1) ( 4) ( 4 ) 1) 3)	$ 10,533,526 386,198 10,919,724 8,865,307 2,054,417 - 2,054,417 576,654 475,357 231,949 24,314 1,308,274 55,618 801,761 54,256 123,148 52,828 ) 206,066 ) ( 53,384) 134,874) ( 666,887 52,424 614,463	96 4 100 81 19 - 19 5 5 2 - 12 - 7 - 1 - 2 ) - 1) 6 - 6

(Continued)

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2020 2019
Code Amount ％ Amount ％
Other comprehensive income (net loss)
8310 Items not reclassified to profit or loss
8311 Determine the remeasurement of the
benefit plan (note 26) 29,226 - ( 4,956 ) -
8316 Unrealized appraisal gains and losses of
equity instrument investments
measured at fair value through other
comprehensive gains and losses (note
27) 29,573 1 65,232 1
8320 Share of other comprehensive profit and
loss of affiliates using the equity method
(Note 27) ( 1,548 ) - - -
8349 Income tax related to items not
reclassified (Note 30) ( 5,678 ) - 1,038 -
51,573 1 61,314 1
Items that may be reclassified to profit
and loss in the future
8361 Conversion difference in the conversion
of financial statements of foreign
operating institutions (Note 27) ( 114,464 ) ( 1 ) ( 188,358 ) ( 2 )
8370 Share of other comprehensive profit and
loss of affiliates using the equity method
(Note 27) 26,815 - ( 26,500 ) -
8399 Income tax related to items that may be
reclassified (Notes 27 and 30) 18,305 - 39,648 -
8360 ( 69,344 ) ( 1 ) ( 175,210 ) ( 2 )
8300 Other comprehensive profit and loss for
the year (net after tax) ( 17,771 ) - ( 113,896 ) ( 1 )
8500 Total comprehensive profit and loss for
the year ( $ 224,404 ) ( 3 ) $ 500,567 5
8600 The net profit (net loss) is
attribuSchedule to:
8610 Owner of the company ( $ 207,286 ) ( 3 ) $ 558,021 5
8620 Non-controlling interests 653 - 56,442 1
( $ 206,633 ) ( 3 ) $ 614,463 6
8700 The total comprehensive profit and loss
is attribuSchedule to:
8710 Owner of the company ( $ 241,385 ) ( 3 ) $ 444,877 4
8720 Non-controlling interests 16,981 - 55,690 1
( $ 224,404 ) ( 3 ) $ 500,567 5
Earnings per share (net loss) (Note 31)
9710 Basic ( $ 0.54 ) $ 1.61
9810 Dilution ( $ 0.54 ) $ 1.60
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The accompanying notes are an integral part of the consolidated financial statements. (Please refer to the auditors’ report of Deloitte and Touché on March 19, 2021)

Chairman: Chia-Min Yeh, Manager: Wei-Li Yeh, Accounting Manager; Yi-nung-Yu

Stock Number ： 1464

De Licacy Industrial Co., Ltd.and Subsidiaries Consolidated Statements of Changes in Equity For the Years Ended December 31, 2020 and 2019

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(In thousands of New Taiwan Dollars,
Except Dividends per Share)
Equity attribute to the Company’s owner
Retained Earnings Other Equities
Unrealized gains or
Exchange differences losses on financial assets
from the financial at fair value through
Special surplus Unappropriated statements of foreign other comprehensive Non-Controlled
Code Common Stock Capital Surplus Leqal Reserve reserve Earnings operating enteritis income Total Treasury Stocks Grand Total Equity Total Equity
A1 Balance at 1 January 2019 $ 3,345,657 $ 652,962 $ 208,137 $ 280,634 $ 241,374 ( $ 294,358 ) $ 1,316 ( $ 293,042 ) ( $ 12,681 ) $ 4,423,041 $ 798,168 $ 5,221,209
Appropriations of 2018 earnings (Note27)
B1 Legal Reserve - - 20,216 - ( 20,216 ) - - - - - - -
B3 Special surplus reserve - - - 12,408 ( 12,408 ) - - - - - - -
B5 Cash dividends to shareholders – NT$ 0.55per share - - - - ( 184,011 ) - - - - ( 184,011 ) - ( 184,011 )
C15 Cash dividends from capital Surplus cash dividends to
shareholders – NT$0.95 per share ( Note 27) . - ( 317,837 ) - - - - - - - ( 317,837 ) - ( 317,837 )
D1 Net income for the year ended December 31 2019 - - - - 558,021 - - - - 558,021 56,442 614,463
D3 Other comprehensive (loss) income after tax for the year ended
December 31, 2019 - - - - ( 4,230 ) ( 157,089 ) 48,175 ( 108,914 ) - ( 113,144 ) ( 752 ) ( 113,896 )
D5 Total comprehensive (loss) income for the year ended Dec. 31
2019 - - - - 553,791 ( 157,089 ) 48,175 ( 108,914 ) - 444,877 55,690 500,567
E1 Issurance of ordinary shares for cash (Note 27) 500,000 597,987 - - - - - - - 1,097,987 - 1,097,987
M1 Dividends distributed to the subsidiary and adjust capital
surplus (Note 27) - 1,827 - - - - - - - 1,827 - 1,827
M3 Subsidiary liquidation and returned shares (Note 27) - - - - - - - - - - ( 5,186 ) ( 5,186 )
M5 Difference between actual acquisition of the subsidiary equity
price and book value (Notes 12, 27, and 33) - 8,710 - - - - - - - 8,710 ( 105,324 ) ( 96,614 )
M7 Changes equity to the Subsidiary ownership (Notes 12, 27 and
33) - ( 1,480 ) - - - - - - - ( 1,480 ) 1,480 -
O1 Cash dividends from the Subsidiary (Note 27) - - - - - - - - - - ( 43,842 ) ( 43,842 )
T1 Non-controlled equity increase(Note 27) - - - - - - - - - - 94,081 94,081
Z1 Balance at 31 December 2019 3,845,657 942,169 228,353 293,042 578,530 ( 451,447 ) 49,491 ( 401,956 ) ( 12,681 ) 5,473,114 795,067 6,268,181
Appropriations of 2019 earnings (Note 27)
B1 Legal Reserve - - 55,379 - ( 55,379 ) - - - - - - -
B3 Preferred Reserve - - - 108,914 ( 108,914 ) - - - - - - -
B5 Cash dividends to shareholders - NT$1.05 per share - - - - ( 403,794 ) - - - - ( 403,794 ) - ( 403,794 )
C15 Cash Dividends from Capital Surplus to shareholders-
NT$0.45 per share(Note 27) - ( 173,055 ) - - - - - - - ( 173,055 ) - ( 173,055 )
D1 Net income for the year ended December 31, 2020 - - - - ( 207,286 ) - - - - ( 207,286 ) 653 ( 206,633 )
D3 Other comprehensive (loss) income after tax for the year ended
December 31, 2020 - - - - 23,332 ( 74,434 ) 17,003 ( 57,431 ) - ( 34,099 ) 16,328 ( 17,771 )
D5 Total comprehensive (loss) income for the year ended
December 31, 2020 - - - - ( 183,954 ) ( 74,434 ) 17,003 ( 57,431 ) - ( 241,385 ) 16,981 ( 224,404 )
M3 The subsidiary on liquidation (Notes 27 and 32) - 7,459 - - - 12,788 - 12,788 12,681 32,928 ( 189,185 ) ( 156,257 )
M5 Difference between actual acquisition of the subsidiaries
equity price and book value difference (Notes 12, 27, and 33) - 675 - - - - - - - 675 ( 22,004 ) ( 21,329 )
M7 Changes equity to the Subsidiary ownership (Notes 12, 27 and
33) - 22,394 - - - 422 1,102 1,524 - 23,918 ( 23,918 ) -
O1 Cash dividends from the Subsidiary (Note 27) - - - - - - - - - - ( 45,663 ) ( 45,663 )
Q1 Other comprehensive loss /income at fair value through
liquidation (Note 27) - - - - 11,428 - ( 11,428 ) ( 11,428 ) - - - -
T1 Non-controlled equity increase(Note 27) - ( 8,084 ) - - - - - - - ( 8,084 ) 219,188 211,104
Z1 Balance on 31 December 2020 $ 3,845,657 $ 791,558 $ 283,732 $ 401,956 ( $ 162,083 ) ( $ 512,671 ) $ 56,168 ( $ 456,503 ) $ - $ 4,704,317 $ 750,466 $ 5,454,783
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The accompanying notes are an integral part of the consolidated financial statements.

(Please refer to the auditors’ report of Deloitte and Touché on March 19, 2021)

Chairman: Chia-Min Yeh, Manager: Wei-Li Yeh, Accounting Manager; Yi-nung-Yu

De Licacy Industrial Co., Ltd.and Subsidiaries Consolidated Statements of Cash Flows For the years ended December 31 of 2020 and 2019 (In thousands of New Taiwan Dollars)

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Code 2020 2019
CASH FLOWS FROM OPERATING ACTIVITIES
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A10000 Income (Loss) before tax ( A20000 Adjustments for: Revenues/Expenses A20100 Depreciation A20200 Amortization A20300 Expected credit loss (gain) A20400 Financial assets and liabilities at fair value through profit or loss A20900 Financial cost A21200 Interest income ( A21300 Dividend income ( A21900 Share-Based Payment cost A22300 Share of Loss of Associates & Joint Ventures Accounted for Using Equity Method A22500 Loss (income) from liquidation of property, plant and equipment A22700 Income from liquidation of investment properties A23700 Inventory Valuation and Obsolescence Losses A23900 Unrealized sales income A24100 Unrealized foreign exchange losses A24500 Benefits from liquidation of subsidiary ( A29900 Allowance (reversal) for refund liability. ( A29900 Gains from lease amendment ( Changes in operating assets and liabilities A31130 Notes Receivable A31150 Accounts Receivable (include related parties) A31180 Other accounts receivable (include related parties ) ( A31200 Inventory A31230 Prepayments A31240 Other current assets A32130 Notes payable ( A32150 Accounts payable A32160 Accounts payable - stakeholders ( A32180 Other payables ( A32190 Other payables - stakeholder A32230 Other current liabilities ( A32240 Net confirmed welfare liability (assets) – non-current ( A32990 Long-term differed income A33000 Cash generated from operations A33100 Interest received A33200 Dividends received A33300 Interest paid ( A33500 Income tax paid ( AAAA Cash generated from operations (net) CASH FLOWS FROM INVESTING ACTIVITIES B00010 Acquisition of financial assets - current at fair value through other comprehensive profit or loss ( B00020 Liquidation of financial assets - current at fair value through other comprehensive profit or loss B00100 Acquisition of financial assets at fair value through profit or loss ( B00200 Liquidation of financial assets at fair value through profit or loss B00040 Acquisition of financial assets at amortized cost (	$ 291,802 ) 615,814 2,073 60,043 9,740 ( 177,717 42,886 ) ( 1,487 ) ( - 83,313 9,383 ( - ( 42,628 26 95,539 9,154 ) 1,950 ) 10 ) 14,976 58,893 ( 56,839 ) 42,252 ( 37,655 ( 88,533 ( 1,367 ) ( 7,761 32,879 ) 122,455 ) 9,697 ( 19,993 ) 27,231 ) ( 22,829 ( 770,819 40,590 1,487 179,579 ) ( 30,296 ) ( 603,021 83,563 ) 63,635 21,277 ) ( 24,242 10,682,165 ) (	$ 666,887 542,728 2,224 24,314 33,621 ) 206,066 54,256 ) 1,602 ) 737 53,384 55,618 ) 14,409 ) 9,264 - 13,081 - 1,077 - 54,238 183,582 ) 24,955 518,876 ) 46,779 ) 158,562 ) 43,571 ) 33,756 139,678 143,169 10,332 ) 64,878 13,605 ) 2,193 ) 843,430 51,664 1,602 201,963 ) 90,745 ) 603,988 - - 24,569 ) 15,113 18,395,760 )

(continued)

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code 2020 2019
B00060 Financial assets at amortized cost repayment of principal
upon maturity 9,900,763 18,038,738
B01800 Investments accounted for using equity method ( 6,375 ) ( 22,259 )
B02000 Increase in prepayments for investments ( 34,647 ) -
B02200 Net cash flows from subsidiary acquisition ( 1,225 ) -
B02300 Net cash flows from subsidiary liquidation ( 1,801 ) -
B02400 Net returned payments for share from subsidiary
-
liquidation ( 5,285 )
B02700 Acquisition of property, plant and equipment ( 438,271 ) ( 1,263,391 )
B02800 Proceeds from liquidation of property, plant and
equipment 263,177 362,256
B03700 Increase in refundable deposits ( 1,445 ) ( 16,796 )
B03800 Decrease in refundable deposits 2,928 12,381
B04300 Increase in other Accounts receivable – related parties ( 8,009 ) -
B04500 Acquisition of intangible assets ( 565 ) ( 1,430 )
B05350 Acquisition of the right-of-use assets - ( 1,629 )
B05500 Proceeds from disposal of real estate investments 43,030 -
B06700 Increase in prepayment for equipment ( 12,866 ) ( 117,386 )
B06800 Decrease in long-term receivables 1,355 1,798
B07600 Received dividends from associated companies 7,949 -
B09900 Subsidies from the right-of-use assets - 25,697
BBBB Net cash used in investing activities ( 985,130 ) ( 1,392,522 )
CASH FLOWS FROM FINANCING ACTIVITIES
C00100 Increase in short-term debts 29,164,154 27,027,237
C00200 Decrease in short-term debts ( 27,574,750 ) ( 26,836,058 )
C00500 Increase in short-term notes and bills payable 3,948,627 3,704,716
C00600 Decrease in short-term notes and bills payable ( 3,638,916 ) ( 3,767,743 )
C01600 Loan of long-term debt 5,023,231 12,974,615
C01700 Repayment of long-term debt ( 6,105,032 ) ( 11,911,926 )
C03000 Increase in deposits received 6,224 10,382
C03100 Decrease in deposits received ( 8,010 ) ( 8,273 )
C03600 Decrease in other payables - ( 44,500 )
C03700 Increase in other payables= related parties 175,660 203,842
C03800 Decrease in other payables= related parties ( 181,974 ) ( 481,156 )
C04020 Repayment of the principal portion of lease liabilities ( 47,391 ) ( 43,565 )
C04500 Net cash used in financing activities ( 622,512 ) ( 543,863 )
C04600 Issuance of common stock for cash - 1,097,250
C05400 Issuance of Subsidiary’s common stock for cash 211,104 94,081
C09900 Acquisition of ownership interests in subsidiaries ( 96,279 ) ( 21,664 )
CCCC Net cash generated from financing activities 254,136 1,453,375
DDDD EFFECTS OF EXCHANGE RATE CHANGES ON THE
BALANCE OF CASH HELD IN FOREIGN CURRENCIES 8,106 ( 51,326 )
EEEE NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS ( 119,867 ) 613,515
E00100 CASH AND CASH EQUIVALENTS AT THE BEGINNING
OF THE YEAR 1,343,347 729,832
E00200 CASH AND CASH EQUIVALENTS AT THE END OF
THE YEAR $ 1,223,480 $ 1,343,347
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The accompanying notes are an integral part of the consolidated financial statements. (Please refer to the auditors’ report of Deloitte and Touché on March 19, 2021)

Chairman: Chia-Min Yeh, Manager: Wei-Li Yeh, Accounting Manager; Yi-nung-Yu

De Licacy Industrial Co., Ltd.and Subsidiaries

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In thousands of New Taiwan Dollars, unless stated otherwise)

1. Company history

De Licacy Industrial Co., Ltd. (”the Company”) was incorporated in July 1982 and engaged in manufacturing plaid cloth, blended cloth, jacquard cloth, bubble cloth, telescopic cloth, chemical fiber cloth, polyester cotton cloth, satin and other textile manufacturing dyeing and finishing processing and trading business.

The Company’s stock has been listed and traded on the Taiwan Stock Exchange since January 1997.

The currency used in the consolidated financial statements is New Taiwan Dollars.

2. The date and procedures for passing the financial report

The consolidated financial statements were approved by the Corporation’s board of directors on March 15, 2021.

3.Application of newly issued and revised standards and interpretations

(1)Initial application of the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), Interpretations of (IFRIC), and Interpretation announcement (SIC), (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC), which did not have any material impact on the Company’s accounting policies:
(2)The IFRSs endorsed by the FSC for application starting from 2021

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Effective Date
New IFRSs Announced by IASB
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New IFRSs	Effective Date Announced by IASB
Amendment to IFRS 4 “application to IFRS 9 -	Effective from issuing date
temporally exemption for extension”
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4,	The Corporation shall apply these
and IFRS 16 “Interest Rate Benchmark	amendments for annual reporting
Reform – the second stage”	period beginning on or after January
	1, 2021.
Amendment to IFRS 16 “COVID-19-related rent	The Corporation shall apply these
concessions”	amendments for annual reporting
	period beginning on or after June 1,
	2020.

As of the date the financial statements were authorized for issue, the combined company continues in evaluating the impact on its financial position and financial performance as a result of the initial adoption of the related standards or interpretations. The related impact will be disclosed when the Company completes the evaluation.

(3)New IFRSs in issue but not yet endorsed and issued into effect by the FSC

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Effective Date
Announced by IASB
New IFRSs (Note 1)
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New IFRSs	Effective Date Announced by IASB (Note 1)
“Annual improvement for the 2018-2020 period”	January 1 2022 (Note 2)
Amendment to IFRS 3 ” Updating a Reference to the
Conceptual Framework”	January 1 2022 (Note 3)
Amendments to IFRS 10and IAS 28 “	To be confirmed
Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture”
IFRS 17 “Insurance Contract”	January 1 2023
Amendments to IFRS 17	January 1 2023
Amendments to IAS 1 “Classification of Liabilities as	January 1 2023
Current or Non-current”
Amendment to IAS 1” Disclosure of Accounting Policies”	January 1 2023(Note 6)
Amendment to IAS 8 “Accounting Estimates Definitions”	January 1 2023(Note 7)
Amendment to IAS 16 “Property, Plant and Equipment —	January 1 2022(Note 4)
Proceeds before Intended Use”
Amendment to IAS 37 “Onerous Contracts — Cost of	January 1 2022(Note 5)
Fulfilling a Contract”

Note1 : Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
Note2: IFRS 9 Amendments will be applied to the exchange of financial liabilities or modification of terms that occur during the annual report period after January 1, 2022; IAS 41amendments "Agriculture" will be applied to fair value measures for the annual report period after January 1, 2022. IFRS 1amendments "First adoption of IFRSs" will be applied retroactively to the annual report period after January 1, 2022.
Note3: The Corporation shall apply these amendments to business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after January 1, 2020.
Note4: This amendment applies to plant, property and equipment in the location and condition necessary to achieve management's intended operation mode after January 1, 2021.
Note5: This amendment will be applied to contracts that have not fulfilled all their obligations as at 1 January 2022
Note6: The Company shall apply these amendments postponed for annual reporting periods beginning on or after January 1, 2023.
Note7: This amendment applies to changes in accounting estimates and changes in accounting policies that occur in the beginning annual report period after January 1, 2023.

As of the date of the consolidated financial statements were authorized for issue, the combined company is still evaluated that no significant impact on its financial position and financial performance is anticipated as a result of the initial adoption of the other standards or interpretations.

4. Summary explanation of major accounting policies

(1) Statement of compliance

The consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs as endorsed and issued into effect by the FSC.

(2) Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis, except for financial instruments that are measured at fair value and net defined benefit liabilities (assets) recognized at the present value of the defined benefit obligation less the fair value of plan assets.

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

  - 1)  Level 1 input is quoted prices (unadjusted) in active markets for identical assets or liabilities.

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

  - 3)  Level 3 inputs are unobservable inputs for an asset or liability.

(3) Classification of current and noncurrent assets and liabilities
```
 - Current assets include:
```
- 1) Assets held primarily for the purpose of trading;
- 2) Assets expected to be realized within 12 months after the reporting period; and
- 3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period
Current liabilities include:
- 1) Liabilities held primarily for the purpose of trading;
- 2) Liabilities due to be settled within 12 months after the reporting period; and
- 3) Liabilities for which the Company does not have an unconditional right to defer settlement for at least 12 months after the reporting period.

Assets and liabilities that are not classified as current are classified as non-current

(4) Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e., its subsidiaries). The consolidated income statement is included in the operating profit and loss of the acquired or disposed subsidiary at the current date of acquisition or until the date of disposition.When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by consolidated companie.All intra-company transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

When the merging company's changes in the ownership and equity of the subsidiary do not result in the loss of control, it is treated as an equity transaction. The carrying amount of the consolidated company and non-controlling interests has been adjusted to reflect changes in its relative equity in the subsidiary. The difference between the adjustment amount of non-controlling interests and the fair value of the consideration paid or received is directly recognized as equity and attributable to the owners of the company.

When the combined company loses control of a subsidiary, the gain or loss on disposal is the difference generated from (1) the aggregate of the fair value of the consideration received and the fair value of the remaining investment in the former subsidiary at the date of loss of control, and (2) the aggregate total of the assets and liabilities and noncontrolling interests of the former subsidiary at the carrying amount on the date of loss of control. The combined company accounts for all amounts recognized in other comprehensive income or loss related to the subsidiary on the same basis as the combined company must follow for the direct disposal of the related assets or liabilities.

The remaining investment in a former subsidiary is recognized as the original investment in related companies based on the fair value on the date of loss of control.

See Note 12, Schedule 7 and Schedule 8 for detailed information on subsidiaries (including percentages of ownership and main businesses).

(5) Business Combinations

The business combinations follow the acquisition laws. The related acquisition -related costs are included as expenses in the period of cost occurrence and labor acquisition.

Goodwill is measured at the fair value of the transfer consideration and the total fair value of the acquirer's previously held interest in the acquirer at the date of the acquisition, in excess of the net amount of identifiable assets and liabilities acquired at the date of the acquisition.

(6) Foreign currencies

In preparing the financial statements of each individual entity, transactions in currencies other than the entity’s functional currency (i.e., foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when fair value was determined. Exchange differences arising from the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gain and losses are recognized directly in other comprehensive income; in which cases, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rate at the date of the transaction (i.e., not recalculated).

For the purpose of presenting the consolidated financial statements, the functional currencies of its foreign operations are translated into the presentation currency, the New Taiwan dollar, as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; and income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income (attributed to the owners of the Company and non-controlling interests as appropriate).

If the combined company disposes of all the interests of a foreign operation, or disposes of some interest of a subsidiary of a foreign operation but loses control, or disposes of a related company of a foreign operation after the retained interests are financial assets and treated in accordance with the accounting policies of financial instruments, all accumulated foreign exchange differences attributed to the owners of the Company and related to the foreign operations will be re-classified to profit or loss.

(7) Inventories

Inventories consist of raw materials, work in progress( including outsourced) and finished goods , and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. The net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at the weighted-average cost on the balance sheet date.

(8) Investments in associates and joint venture

An associate is an entity over which the combined companies have significant influence, and which are neither a subsidiary nor an interest in a joint venture.

The combined companies use the equity method to account for its investments in associates.

Under the equity method, investments in an associate are initially recognized at cost and adjusted thereafter to recognize the combined companies’ share of the profit or loss and other comprehensive income of the associate. The combines companies also recognize the changes in the combined companies’ share of the equity of associates.

The entire carrying amount of an investment is tested for impairment as a single asset by comparing its recoverable amount with its carrying amount. Any impairment loss recognized is not allocated to any asset that forms part of the carrying amount of the investment. Any reversal of that impairment loss is recognized to the extent that the recoverable amount of the investment subsequently increases.

When the combined companies transact with its associate, profits and losses resulting from the transactions with the associate are recognized in the combined companies consolidated financial statements only to the extent of interests in the associate that are not related to the combined companies.

(9) Property, plant, and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost less accumulated depreciation.

Property, plant and equipment in the course of construction are measured at cost. Cost includes professional fees and borrowing costs eligible for capitalization. Such assets are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for their intended use.

Except for freehold land which is not depreciated, the depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. If their respective lease terms are shorter than their useful lives, such assets are depreciated over their lease terms. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effects of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

(10) Investment properties

Investment properties are properties held to earn rental and/or for capital appreciation. Investment properties also include land held for a currently undetermined future use.

Investment properties are initially measured at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation.

Straight-line basis depreciation of investment real estate.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

(11) Goodwill

Goodwill arising from the acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment loss.

To impairment testing, goodwill is allocated to each of the Group’s cash-generating units or groups of cash-generating units (referred to as “cash-generating units”) that is expected to benefit from the synergies of the combination.

A cash-generating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired, by comparing its carrying amount, including the attributed goodwill, with its recoverable amount. However, if the goodwill allocated to a cash-generating unit was acquired in a business combination during the current annual year, that unit shall be tested for impairment before the end of the current annual year. If the recoverable amount of the cash-generating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss is recognized directly in profit or loss. An impairment loss recognized for goodwill is not reversed in subsequent periods.

(12) Intangible assets

1. Intangible assets acquired separately.

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful lives, residual values, and amortization methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis. Intangible assets with indefinite useful lives that are

acquired separately are measured at cost less accumulated impairment loss.

Derecognition of intangible assets

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

(13) prope Impairment of property, plant and equipment, right-of-use asset, and intangible assets excluding goodwill.

At the end of each reporting period, the combined companies review the carrying amounts of its property, plant and equipment, right-of-use asset and intangible assets, excluding goodwill, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the combined companies estimate the recoverable amount of the cash-generating unit to which the asset belongs. Corporate assets are allocated to the smallest group of cash-generating units on a reasonable and consistent basis of allocation.

The recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the corresponding asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized on the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

(14) Financial instruments

Financial assets and financial liabilities are recognized when the Combined companies becomes a party to the contractual provisions of the instruments.

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

1. Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

(1) Measurement categories

Financial assets are classified into the following categories: financial assets at amortized cost and investments in equity instruments at FVTOCI.

A. Financial assets at Fair value through profit or loss

Financial assets at fair value through profit or loss are financial assets measured at fair value through profit or loss on a mandatory basis. Financial assets at fair value through profit or loss include investments in equity instruments that are not designated as at fair value through other comprehensive income.

Financial assets at fair value through profit or loss are measured at fair value with dividends and interest recognized in other income and interest income, respectively, and gains or losses arising from remeasurement recognized in other gains and losses. For the determination of fair value, please refer to Note 36

B. Financial assets carried at amortized cost

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

a) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and
b) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, financial assets at amortized cost, notes and accounts receivable (net) and other receivables at amortized cost, are measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

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

a) Purchased or originated credit-impaired financial assets, for which interest income is calculated by applying the credit adjusted effective interest rate to the amortized cost of such financial assets; and
b) Financial assets that are not credit impaired on purchase or origination but have subsequently become credit impaired, for which interest income is calculated by applying the effective interest rate to the amortized cost of such financial assets in subsequent reporting periods.

A financial asset is credit impaired when one or more of the following events have occurred:Significant financial difficulty of the issuer or the borrower;Breach of contract, such as a default;It is becoming probable that the borrower will enter bankruptcy or undergo a financial reorganization; or The disappearance of an active market for that financial asset because of financial difficulties.

Cash equivalents include time deposits with original maturities within 3 months from the date of acquisition, which are highly liquid, readily convertible to a known amount of cash and are subject to an insignificant risk of changes in value. These cash equivalents are held for the purpose of meeting short-term cash commitments.

C.Investments in equity instruments at FVTOCI

On initial recognition, the Combined companies may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Combined companies’ right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

(2) Impairment of financial assets

The Combined companies recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including accounts receivable).

The Combined companies always recognizes lifetime expected credit losses (ECLs) for accounts receivable. For all other financial instruments, the Combined companies recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Combined companies measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

For internal credit risk management purposes, the Combined companies etermines that internal or external information which shows that the debtor is unlikely to pay its creditors would indicate that a financial asset is in default (without taking into account any collateral held by the Combined companies).

The impairment loss of all financial assets is recognized in profit or loss by a reduction in their carrying amounts through a loss allowance account.

(3) Derecognition of financial assets

The Combined companies derecognizes a financial asset only when the contractual rights to the cash flows from the asset expire or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss. However, on derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

2. Financial liabilities

(1) Subsequent measurement

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

(2) Derecognition of financial liabilities

The difference between the carrying amount of a financial liability derecognizedand the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

3. Derivative instruments

The derivative instruments which are entered into by The combined company are exchange rate swap contract to manage the exchange rate risk of The combined company.

Derivative instruments are originally recognized at fair value at the time of signing the derivative instruments contract, and are subsequently re-measured at fair value at the balance sheet date. When the fair value of derivative instruments is positive, it is then classified as a financial asset; when the fair value is negative, it is then classified as a financial liability.

(15) Treasury Stocks

The subsidiary holds the shares of the parent company on the basis of the book value of the parent company when the subsidiary becomes a subsidiary.

(16) Provisions

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows.

(17) Revenue recognition

The combined company allocates the transaction price to each contractual performance obligation after the contractual performance obligation is identified in the customer contract and recognized revenue when each performance obligation is satisfied.

Sales Revenue

Sales revenue comes from the sale of long and short fiber fabrics. The combined company recognizes revenue and accounts receivable at the time when the customer has the right to set the price and use the products and has the primary responsibility for re-selling the products and bears the risk of obsolescence of the products when the trade

terms are fulfilled.

Therefore, no revenue is recognized when the product is in de-materialization process.

(18) Lease

At the inception of a contract, The combined company assesses whether the contract is, or contains, a lease.

The combined company as lessor

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

The lease payment of the operating lease is recognized as income on a straight-line basis during the relevant lease period. The original direct costs incurred as a result of the acquisition of a business lease are added to the carrying amount of the underlying asset and are recognized as expenses during the lease period on a straight-line basis.

The combined company as lessee

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

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any re-measurement of the lease liabilities.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

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

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. If the changes

in lease term result in changes in future lease payments, The combined company re-measures the lease liability and adjusts the right-to-use assets relatively, provided that the book value of the right-to-use assets has been reduced to zero, the remaining measured amount is recognized in the profit and loss. Lease liabilities are expressed separately in the consolidated balance sheet.

(19) Borrowing Costs

Borrowing costs directly attributable to an acquisition, construction or production of qualifying assets are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalization.

Other than that which is stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

(20) Government grants

Government grants are not recognized until there is reasonable assurance that The combined company willcomply with the conditions attached to them and that the grants will be received.

Government grants related to revenue are recognized in other income on a systematic basis over the period in which the related costs intended to be reimbursed are recognized as expenses by The combined company. Government grants that are contingent on the acquisition of non-current assets by The combined company are recognized as deferred revenue and are transferred to other income on a systematic basis over the life of the related assets.

Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to The combined company with no future related costs are recognized in profit or loss in the period in which they become receivable.

(21) Employee benefits

1. Short-term employee benefits

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

2. Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

Defined benefit costs (including service cost, net interest and remeasurement)

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

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Group’s defined benefit plans. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

(22) Taxation

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

Current tax

Income tax payable (recoverable) is based on taxable profit (loss) for the year determined according to the applicable tax laws of each tax jurisdiction.

According to the Income Tax Law in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

Deferred tax

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

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

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

differences and they are expected to reverse in the foreseeable future.

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

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities. If investment properties measured using the fair value model are non-depreciable assets, or are held under a business model whose objective is not to consume substantially all of the economic benefits embodied in the assets over time, the carrying amounts of such assets are presumed to be recovered entirely through sale.

3. Current and deferred taxes

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

Major sources of uncertainty in major accounting judgments, estimates and assumptions In the application of The combined companys’ accounting policies, management is required to make judgments, estimations, and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered relevant. Actual results may differ from these estimates.

The combined companies consider the economic implications of the COVID-19 when making its critical accounting estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

Estimates and key resources of assumption uncertainty- slow-moving inventory losses

Inventory is based on the age of the stock to assess its sluggish situation, and based on historical experience to estimate the proportion of its proposed impairment amount, as the basis for assessing the loss of inventory sluggish. If future actual inventory impairment is 。 higher than expected, significant losses may be incurred.

6. Explanation of important accounting items

Cash on hand, turnover and petty cash Bank cheques and demand deposits Cash Equivalents (Investments with an original Expiry Date of less than 3 months) Time Deposit Commercial Paper	31 December 2020 $ 1,403 1,115,912 6,165 100,000 $ 1,223,480	31 December 2019	31 December 2019
			$ 1,625 969,902 371,820 - $ 1,343,347

The annual interest rate of cash equivalents on December 31, 2020 and 2019 was 0.95% to 3.3% and 0.66% to 2.25% respectively.

7. Financial Instruments at fair value through profit and loss.

Financial assets-current Mandatory measurement at fair value through profit or loss Derivative instruments (not designated as hedge) Conversion rights of private placement convertible bonds of listed companies (Note 9) Non-derivative financial assets Domestic listed (over-the-counter) stocks Fund beneficiary certificates Financial liabilities-current Held for trading Derivative instruments (not designated as hedges) Exchange rate swap contracts (Note)	December 31 2020 $ 52,461 2,856 9,387 $ 64,704 $ 20,927	December 31 2019	December 31 2019
			$ 43,599 9,720 8,589 $ 61,908 $ 2,462

Note:Foreign exchange contracts with no hedging accounting applied at the balance sheet date and which have not yet due are as follows:

December 31, 2020

not yet due are as follows: December 31, 2020
Category Foreign exchange swap contract Foreign exchange swap contract December 31 2019 Category Foreign exchange contract	Currencies	Expiration Period 2021.01.28`～`2021.08.09 2021.02.23 Expiration Period 2020.02.07`～`2020.03.17	Contract Amount (in 1,000 dollars)
	NTD to USD NTD to CNY Currencies NTD to USD		NTD 679,680/USD 23,100 NTD 43,128/CNY 10,000 Contract Amount (in 1,000 dollars)
			NTD 278,730/USD 9,200

The purpose of the combined company to engage in foreign exchange transactions is mainly to avoid the risk of foreign currency assets and liabilities due to foreign exchange fluctuations.

Financial assets and liabilities at fair value through profit or loss in the years of 2020 and 2019 resulted the evaluation loss of NT$18,301,000 and evaluation benefits of NT$34,715,000 respectively, which were included under other benefits and losses in the consolidated comprehensive income statement.

8. Financial assets – Equity instrument investment at fair value through other comprehensive profit or loss

Current Domestic Investment Shares of listed companies Common stock of Far Eastern International Commercial Bank. Noncurrent Domestic Investment Private shares of listed companies Private common shares of Chia Her Industrial Co., Ltd. Private (over-the-counter) shares Common stock of Tuntex Incorporation.	December 31 2020 $ 38,979 $ 120,056 - $ 120,056	December 31 2019	December 31 2019
			$ - $ 109,534 1,476 $ 111,010

In July 2013 and May 2014, the combined company subscribed 13,980,000 and 15,873,000 shares (2,266,000 and 2,573,000 shares after the capital reduction, with a consolidated ownership of 5.902%) of Chia Her Industrial Co., Ltd..’s private placement common stock at NT$1.43 and NT$1.26 per share, respectively, for $19,991,000 and $20,000,000, respectively. Although the 3-year lock-up period has passed, the Company is still unable to complete the public offering because its past profitability does not meet the requirements for listing.

The combined company invests in the private equity of Chia Her Industrial Co., Ltd. and the common shares of Tuntex Incorporation for medium-and long-term strategic purposes. The management of The combined company believes that it would be inconsistent with the aforementioned long-term investment plan to include short-term fair value fluctuations of these investments in profit or loss. Thus, they select and designate these investments at fair value through other comprehensive profits and losses

9.Financial assets at amortized cost

Current Domestic Investment Financial Product (1) Pledged Demand Deposit Pledged Time Deposit (1) Time deposits with an original maturity period of more than 3 months (1) Non-Current Domestic Investment Chia Her Industrial Co., Ltd. private equity convertible corporate bond (2) (1) Financial product interest rate range Time Deposit interest rate range	December 31 2020 $ 13,094 323,470 2,480,338 - $ 2,816,902 $ 27,725 3.88% 0.07%`～`2.2%	December 31 2019	December 31 2019
			$ - 25,941 2,413,964 10,000 $ 2,449,905 $ 25,229 - 0.13%`～`2.5%

The financial products are non principal guaranteed and with floating interest rates.

(2)In October 2018, The combined company purchased 300 three-year private placement convertible bonds of Chia Her Industrial Co. at a book value of $100,000 with a coupon rate of 4.5% and an effective interest rate of 14.66%. This investment is

not transferable within three years in accordance with the relevant laws and regulations.

The combined company classifies its investment in corporate bonds as investment in liability instruments measured at amortized cost - non-current. Since the economic characteristics and risks of this derivative instruments are not closely related to those of the host contract, The combined company recognizes the derivative separately from the corporate bonds.

(3) For information on pledges of financial assets measured at amortized cost. (see Note 38)
(4)The combined company invests only in liability instruments with low credit risk as assessed by the impairment. The combined company considers the historical default loss rate and the outlook of the industry in which it operates to measure the expected credit loss over 12 months or the expected credit loss over the life of the investment in liability instruments. As the debtor has low credit risk and sufficient ability to settle the contractual cash flows, no expected credit loss has been recorded against financial assets at amortized cost as of December 31, 2020 and 2019.

10. Notes Receivable, Net Accounts Receivable, and other Accounts Receivable

(1) Notes Receivable

Notes receivable of The combined company are all business-related.

No overdue notes receivable of The combined company on 31 December 2020 and 2019 , thus no allowance was made for losses.

(2) Accounts Receivable

Accounts Receivable
At amortized cost Total book value Less: allowance for the losses	December 31 2020 $ 1,709,214 94,352 $ 1,614,862	December 31 2019
			$ 1,839,217 37,788 $ 1,801,429

The average credit period of sales of goods of The combined company was 30-120 days. No interest for accounts receivable. To mitigate credit risk, The combined company's management assigns a dedicated team to determine credit limits, approve credit facilities and other monitoring procedures to ensure that appropriate actions are taken to collect overdue accounts receivable. In addition, The combined company reviews the recoverable amounts of accounts receivable on an individual case basis at the balance sheet date to ensure that appropriate impairment losses have been recorded for uncollectible accounts receivable. Accordingly, the management of the Company believes that the credit risk of The combined company has been significantly reduced.

The combined company measures the loss allowance for notes and accounts receivable at an amount equal to lifetime ECLs. The expected credit losses on notes and accounts receivable are estimated using a provision matrix by reference to the past default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecasted direction of economic conditions at the reporting date. As The combined company’s historical credit loss experience does not show there are significant differences in the loss patterns of different customer groups, therefore, instead of further differentiating the customer groups, the provision matrix only sets the expected credit loss rate based on the number of days to establish accounts receivable.

If there is any evidence shows that the counter-party is in serious financial difficulty and The combined company cannot reasonably expect to recover the amount, for example, if the counter-party is in a liquidation process, The combined company will directly write off the related accounts receivable but will continue the recovery activities, and the recovered amount will be recognized in profit or loss.

The combined company measured the allowance for losses on accounts receivable based on the provision matrix as follows:

December 31 2020

		Less than		90-180	180-365	180-365		365
		90 days		days		days	days above			Total
Expected credit loss rate		0%		0%`～`5%	0%`～`100%		0%`～`100%
Total carrying amount		$1,470,655		$ 130,757	$	47,868	$	59,934		$1,709,214
Allowance for losses		-	(	1,273 )	(	33,993 )	(	59,086 )	(	94,352 )
(expected credit losses
during the continuance
period)
Amortized cost		$1,470,655		$ 129,484	$	13,875	$	848		$1,614,862
December 31 2019
		Less than		90-180	180-365			365
		90 days		days		days	days above			Total
Expected credit loss rate		0%`～`2%	0%`～`100%		0%`～`100%		48%`～`100%
Total Carrying amount		$1,619,056		$ 154,936	$	32,825	$	32,400		$1,839,217
Allowance for losses	(	1,126 )	(	2,776 )	(	17,014 )	(	16,872 )	(	37,788 )
(expected credit losses
during the continuance
period)
Amortized cost		$1,617,930		$ 152,160	$	15,811	$	15,528		$1,801,429

Information on the changes in the allowance for losses on accounts receivable is as follows.

follows.
Beginning Balance Add: Impairment loss for the year Less: Actual write-off for the year Subsidiary Disposal Foreign exchange difference Ending Balance		2020 $ 37,788 60,043 3,605 207 ) 333 $ 94,352		2019
	(		(	$ 27,454 24,314 13,406 - 574 ) $ 37,788

Please see the Note 36-5 - Financial Assets transfer information for the amount and related terms of The combined company's transfer of accounts receivable.

(3) Other Receivables

Other Receivables
Proceeds from Sale of Equipment Proceeds from sales of investment fixed property Proceeds from sale of right-of-use asset Government Grants Others	December 31 2020 $ 20,554 7,452 13,199 8,817 66,056 $ 116,078	December 31 2019
			$ 60,123 50,482 13,199 - 80,459 $ 204,263

11. Inventory

Finished Products Work-in-progress Raw materials work-in-progress materials - outsourced Natures of cost of goods sold: Cost of inventory sold Loss for market price decline and obsolete and slow-moving inventories Unallocated Manufacturing Costs (Note) Other	December 31 2020 $ 1,810,813 807,249 586,119 6,616 $ 3,210,797 2020 $7,254,036 42,628 53,118 1,170 $7,350,952	December 31 2020 $ 1,810,813 807,249 586,119 6,616 $ 3,210,797 2020 $7,254,036 42,628 53,118 1,170 $7,350,952	December 31 2019	December 31 2019	December 31 2019
				$ 1,783,568 893,788 659,884 12,907 $ 3,350,147 2019
					$8,833,327 9,264 15,211 7,505 $8,865,307

Note: Unallocated manufacturing costs include expenses related to the shutdown period due to the impact of the COVID-19 outbreak.

12. Subsidiary

Subsidiaries included in Consolidated Financial Statements

The main elements of the consolidated financial statements are as follows:

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

Percentage of
shareholding( ％ )
Name of Investment December December
Company Name of Subsidiary Business Type 31 2020 31 2019 Note
The Company De Licacy (Samoa) Holdings Company General Investment 100 100 (1)
----- End of picture text -----

Name of Investment Company The Company	Name of Subsidiary De Licacy (Samoa) Holdings Company	Business Type General Investment	December 31 2020 100	December 31 2019 100	Note (1)
	(De Licacy Samoa Company)
	Tung Ming Textile Co., Ltd. (Tung Ming	Manufacture, processing and	-	91.28	(2)
	Company)	trading of chemical fibers
	De-Fa International Industrial Co., Ltd.	General Import and Export	100	100
	(De Fa Company)	Trade
	Chadtex Industrial Co., Ltd. (Chadtex	Manufacturing and sales of	55.06	50.41	(3)
	Company)	finished long-fiber fabrics
	Lucky Unique Enterprise Co., Ltd.	Manufacture and processing	-	59.7	(4)
	(Lucky Unique Enterprise Company)	of various fiber textiles
	British Virgin Islands De Licacy	General Investment	100	100	(5)
	HoldingsLimited (De Licacy BVI
	Holdings Company)
	View Best GlobalLimited (View Best	General Investment	100	100	(6)
	Global Company)
	De Kao Trading Co., Ltd. (De Kao	General Import and Export	-	60	(7)
	Company)	Trade
Tung Ming Company	Lucky Unique Enterprise Company	Manufacture and processing	-	1.22	(4)
		of various fiber textiles
	Bright Wisdom Holdings Ltd. (Bright	General Investment	-	5.22	(8)
	Wisdom Ltd.)
De Licacy Samoa	Vantage Gain Holdings Limited (Vantage	General Investment	73.33	73.33	(9)
Company	Gain Limited )
	Best Alliance International Limited	General Investment	100	100
	(Best Alliance Limited )
	Hao Wan InvestmentLimited (Hao Wan	General Investment	-	100	(11)
	Company)
	De Licacy (Anguilla) Holdings Co Ltd	General Investment	100	100
	(De Licacy Anguilla Company)
	De Hong Holdings Co., Ltd. (De Hong	General Investment	50	50	(12)
	Company)
	New Lake Ltd. (New Lake Company)	General Import and Export	100	100	(13)
		Trade

(Continued)

(continued from the previous page)

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

Percentage of
shareholding( ％ )
Name of Investment December December
Company Name of Subsidiary Business Type 31 2020 31 2019 Note
Deli Star International Limited (Deli Star General Investment - - (14)
----- End of picture text -----

Name of Investment Company	Name of Subsidiary Deli Star International Limited (Deli Star	Business Type General Investment	December 31 2020 -	December 31 2019 -	Note (14)
	Limited )
	Beauty Plus Ventrues Limited (Beauty	General Investment	85	85
	Plus limited )
Hao Wang Company	Chang Sin Lucky Unique Enterprise	Manufacture, dyeing and	-	100	(11)
	TextileLimited (Chang Sin Lucky	sales of various
	Unique Enterprise Company)	high-quality fabrics and
		textiles
De Licacy BVI Holding	De Shen (Cayman) Holdings Co., Ltd.	General Investment	100	100	(5)
Company	Company (De Shen Cayman
	Company)
Der Sheng Cayman	Vietnam De Licacy Enterprise	Printing, dyeing, finishing,	100	100	(5)
Company	LiabilitiesLimited (Vietnam De Licacy	garment manufacturing and
	Company)	trading of various textile
		and yarn materials
De Hong Company	De Hong International Co., Ltd.	Printing and finishing of	100	100	(12)
	(Vietnam) (De Hong (Vietnam)	various types of garments
	Company)	and cloths
Best Alliance International	Hangzhou De Licacy TextileLimited	Production and sales of long	100	100
Limited	(Hangzhou De Licacy Company)	and short fiber fabric
		processing and finishing
	Eden Road InternationalLimited (Eden	General Import and Export	100	100
	Road Company)	Trade
	Bright Wisdom Ltd.	General Investment	53.22	45.85	(8)
	Hong Kong Eden Road	General Import and Export	100	-	(10)
	InternationalLimited (Hong Kong	Trade
	Eden Road Company)
Eden Road Company	Bright Wisdom Ltd.	General Investment	-	20.23	(8)
Lucky Unique Enterprise	Gain Faith Investments Ltd (Gain Faith	General Investment	-	100	(4)
Company	Ltd )
	E Textile Co .,Ltd. (E Textile Company)	Manufacture and processing	-	80	(4)
		of various fiber textile
		products
	De Kao Company	General Import and Export	-	-	(4) and
		Trade			(7)
	Tung Ming Company	Manufacture, processing, and	-	-	(2) and
		trading of chemical fibers			(4)
Bright Wisdom Ltd.	Total Express Ltd.	International Trade Business	100	100	(15)
	Apex Textile Co., Ltd (Apex Textile	Manufacture and sale of	100	100	(15)
	Company)	textile products and dyeing
		and finishing
	Lucky Apex Ventures Limited	General Investment	100	100
	Futures co., Ltd (Futures Company)	General Import and Export	100	-	(16)
		Trade
Lucky Apex Ventures	Apex (Anqing) Textile Co., Ltd (Apex (Anqing)	Manufacture and sale of	100	100
Limited	Company)	various high-quality fabrics
		and textiles
`－`	Thousand Well International Limted	International Trade Business	-	-	(17)
	(Thousand Well Company)
`－`	Fastpower Limited (Fastpower	International Trade Business	-	-	(17)
	Limited )
`－`	Thousand Well (Samoa) International	International Trade Business	-	-	(17)
	Limted (Thousand Well (SAMOA)
	Company)
`－`	Fastpower (Samoa) Limited	International Trade Business	-	-	(17)
	(Fastpower (Samoa) Limited)

(1) The Company increase investment in De Licacy Samoa Company NTD320,241,000(USD11,059,000)and NTD137,228,000(USD4,440,000)in 2020
and 2019 respectively.
(2) On April 20, 2020, the board of directors approved the sale of 91.28% of the Company's equity interest in Tung Ming Company to Lucky Unique Enterprise Company for NTD 258,989,000, which is a reorganization of a jointly-controlled entity, and therefore The combined company increased its capital reserve for the difference between the sale price and the net equity of NTD20,052,000 ， see Note 33.
(3) In 2020, the Company acquired 4.65% of Chadtex Company from an unrelated parties for $21,329,000, resulting in an increase in shareholding from 50.41% to 55.06%. The Company increased capital surplus by $675,000 for the difference between the actual acquisition price and the carrying amount, see Note 33.
(4) In June 2019, the Company acquired 3.96% of Lucky Unique Enterprise Company from an un related party for NT$21,664,000, resulting in an increase in the shareholding ratio from 55.74% to 59.7%, and the Company increased its capital reserve by NT$1,069,000 for the difference between the actual acquisition price and book value. Please see Note 33 . On January 14, 2020, the Board of Directors approved the purchase of 1.22% of Lucky Unique Enterprise Company from its subsidiary Tung Ming Company for NT$6,633,000, resulting in an increase in shareholding from 59.7% to 60.92%, and therefore the transfer of shareholding was a reorganization of a jointly controlled entity. Therefore, the transfer of ownership was a reorganization under common control, and The combined company reduced the capital surplus by NT$27,000 for the difference between the transaction price and the net equity, see Note 33.
On June 19, 2020, the board of directors approved the sale of 35.94% of
Lucky Unique Enterprise Company's shares (14,293,000 shares to unrelated parties) for NT$195,227,000 (NT$13.7 per share, net of securities transaction tax of NT$587,000). The transaction price was determined by reference to the equity value valuation report of Evermore Consulting Co., Ltd., an independent consultant of the un related party, as of March 31, 2020. The remaining investment was recognized at the fair value of the investment in affiliated companies at the date of loss of control, see Notes 13 and 32.

(5) The Company increased its investment in De Licacy Holdings Company by NT$427,638,000 (US$13,600,000) in 2019 for indirect investment in De Shen (Cayman) Holdings Co., Ltd. and Vietnam De Licacy Company. As of December 31, 2020, US$106,060,000 of the indirect investment in Vietnam De Licacy Company has been approved by the Investment Commission of the Ministry of Economic Affairs for review.
(6) The Company increased its investment in View Best Global Co., Ltd. in 2020 by NT$15,622,000 (US$540,000), mainly for the purpose of lending funds to an affiliate, Vietnam AGATO company, for its operations.
(7) On March 12, 2020, the Board of Directors approved the sale of 60% of the Company's equity interest in De Kao Company to Lucky Unique Enterprise Company, a subsidiary, for NT$12,000,000, and therefore the transfer of equity interest is a reorganization under a jointly controlled entity. Therefore, The combined company increased the capital surplus by NT$1,192,000 for the difference between the sale price and the net equity, see Note 33.
(8) Bright Wisdom Ltd. processed a cash capital increase in June 2019, but Tung Ming Company, Best Alliance International Limited and Eden Road Company were not recognized in proportion to their shareholdings, which resulted in a change in the shareholdings in Bright Wisdom Ltd. of 5.22%, 45.85% and 20.23%, respectively. The combined company reduced its capital surplus by NT$1,480,000 for the cash capital increase of the subsidiary not recognized in proportion to its shareholding, see Note 33 attached.

On January 14, 2020, the Board of Directors approved the acquisition of 5.22% and 20.23% equity interest in Bright Wisdom Ltd. by Best Alliance International Limited from its subsidiaries Tung Ming Company and Eden Road Company at US$1.0376 per share, respectively. As such, the transfer of ownership was a reorganization under common control, and The combined company increased the capital reserve by NT$1,177,000 for the difference between the transaction price and the net equity, see Note 33 attached.

Bright Wisdom Ltd. increased its capital by NT$209,403,000 (US$7,100,000) from January to September 2020, and its shareholding decreased from 71.3% to 53.22% because Best Alliance International Limited did not recognize the capital increase in proportion to its shareholding. The Company reduced its capital stock by NT$8,084,000 for this unrecognized increase in capital stock, see Note 33.

(9) De Licacy Samoa Company increased its investment in Bao Li Company by US$159,000 and US$532,000 in 2020 and 2019, respectively, mainly for indirect investment in Perfect Step Investments Limited (Perfect Step Ltd. holds 20% of the shares).
(10) De Licacy Samoa Company indirectly invested $1,572,000 (US$50,000) in Hong Kong Eden Road Company through Best Alliance International Limited in March 109, and Hong Kong Eden Road Company is mainly engaged in general import and export trade. .
(11) Chang Sin Lucky Unique Enterprise Textile Limited was liquidated on October 31, 2020 and the liquidation amount of NT$77,739,000 (US$2,706,000) was remitted to Hao Wan on November 30, 2020 for remittance to De-Licacy Samoa Company.
(12) De Licacy Samoa Company increased its investment in De Hong Company (50% shareholdings) by US$500,000 in 2019, mainly for indirect investment in De Hong (Vietnam) Company (100% shareholdings).
(13) De Licacy Samoa Company invests an additional NT$174,300,000 (US$6,000,000) in New Lake Company in 2020 to repay the USD loan.
(14) As Deli Star International Limited is no longer in active operation, The combined company returned NT$5,200,000 in liquidation on August 16, 2019 and is expected to be automatically delisted by the Government of Anguilla in six months.
(15) At the end of 2019, Bright Wisdom Ltd. acquired 19.231% of the shares of Apex Textile Co., Ltd and Total Express Ltd. from the key management at NT$74,950,000 (US$2,500,000), resulting in an increase in the percentage of shareholding from 80.769% to 100%. The Company increased its capital surplus by NT$7,641,000 for the difference between the actual acquisition price and the book value, see Note 33.
(16) On September 24, 2020, Bright Wisdom Ltd. acquired 100% of the shares held by Futures co., Ltd, which is mainly engaged in general import and export trade, from the key management for NT$3,000,000 (US$103,000). The combined company recognized goodwill of NT$552,000 for the difference between the consideration transferred and the fair value, which was valued using the discounted cash flow method as of September 30, 2020, based on the valuation report of Eternal Asset Consulting Co. On September 24, 2020, Bright Wisdom Ltd. increased its investment in Futures co., Ltd by NT$7,000,000 (US$239,000), which was approved by the Investment Review Committee of the Ministry of Economic Affairs on September 16, 2020 and approved on October 27, 2020.

(17) Thousand Well International Limted and Fastpower Limited are companies to which The combined company has no material equity investment, but The combined company has control over the financial and operating policies of these companies and therefore The combined company has control over them and they are included in the preparation of the consolidated financial statements. The combined company has established Thousand Well (Samoa) International Limted and Fastpower (Samoa) Limited in October 2020 to transfer the operating activities of the former Thousand Well International Limted and Fastpower Limited .

13. Investments accounted for using equity method

Investment in affiliates Investment in joint ventures 1.Investment in affiliates Significant affiliates Perfect Step Ltd. Sung Yu Company Lucky Unique Enterprise Company Individually insignificant affiliates Vietnam ATAGO Company	December 31 2020 $ 746,595 46,459 $ 793,054 December 31 2020 $ 210,718 399,151 111,412 721,281 25,314 $ 746,595	December 31 2020 $ 746,595 46,459 $ 793,054 December 31 2020 $ 210,718 399,151 111,412 721,281 25,314 $ 746,595	December 31 2019 $ 631,022 96,773 $ 727,795 December 31 2019 $ 225,694 364,072 - 589,766 41,256 $ 631,022	December 31 2019

1.Investment in affiliates

The combined company's shareholdings and voting rights in affiliated companies as of the balance sheet date were as follows:

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Name of Company December 31 2020 December 31 2019
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Perfect Step Ltd.	20%	20%
Sung Yu Company	38%	38%
Lucky Unique Enterprise Company	24.98%	-
Vietnam ATAGO Company	30%	30%

Vantage Gain Holdings Limited , a subsidiary, will increase its investment in Perfect Step Ltd. by NT$6,375,000 (US$217,000) and NT$22,259,000 (US$726,000) in 2020 and 2019, respectively, and Perfect Step Ltd. is mainly engaged in general investment.

Please refer to Note 12(4) for information on the Company's investment in a related company- Lucky Unique Enterprise Co., Ltd..

For information on the nature of business, principal place of business and country of incorporation of the above affiliates, please refer to Schedule 7, "Information on Investee Companies, Location...etc." and Schedule 8, "Information on Investment in China".

1). Significant affiliates

The following summarized financial information has been prepared on the basis of the financial statements of each affiliate IFRSs and reflects adjustments made under the equity method.

Perfect Step Ltd.

Current Assets Non-Current Assets Current Liabilities Equity Controlled Equity Equity of the combined companies Operation Income Net income (loss)	December 31 2020 $ 10,159 1,611,909 ( 649,100) 972,968 ( 762,250) $ 210,718 2020 $ - ( $ 50,482 )	December 31 2019	December 31 2019
	( ( (	( ( (	$ 47,692 1,696,806 687,785) 1,056,713 831,019) $ 225,694 2019 $ - $ 802 )

Sung Yu Company

Current Assets Non-current Assets Current Liabilities Equity Controlled Equity Equity of the combined companies	December 31 2020 $ 77 1,054,024 ( 3,703) 1,050,398 ( 651,247) $ 399,151	December 31 2019	December 31 2019
	( (	( (	$ 85 961,845 3,846) 958,084 594,012) $ 364,072

Operation Income Net income (loss)	(	2020 $ - $ 38,283 )	(	2019 $ - $ 36,420 )

Lucky Unique Enterprise Company

Current Assets Non-current Assets Current Liabilities Non-current Liabilities Equity Controlled Equity Equity of the combined companies Unrealized income(loss) of upstream and downstream transactions. Investment Carrying Amount Operation Income Net income	December 31 2020	December 31 2020
	( ( ( (	$ 598,775 801,251 924,092 ) 29,780) 446,154 334,684) 111,470 58 ) $ 111,412 2020 $ 614,595 $ 15,285

2).Consolidated Individually insignificant affiliates information

Shares of the combined companies Total income (loss)		2020 $ 15,941 )		2019
	(		(	$ 13,965 )

2.Investment in joint ventures

`－` Significant Joint Venture New Premium Enterprise Co., Ltd.

Current Assets Non-current Assets Current Liabilities Non-current Liabilities Equity Controlled Equity Equity of the combined companies Net equity difference Investment Carrying Amount	December 31 2020 $ 76,836 19,196 ( 3,114 ) ( - ) 92,918 ( 46,459) 46,459 - $ 46,459	December 31 2019	December 31 2019
	( ( (	( ( (	$ 126,279 53,224 20,788 ) 6,789) 151,926 75,963) 75,963 20,810 $ 96,773

Operation Income Net loss	(	2020 $ 42,829 $ 53,282 )	(	2019 $ 180,706 $ 51,960 )

As of the balance sheet date, The combined company held 50% of the equity and voting rights in the significant joint venture (New Premium Enterprise Co.,Ltd ).

Investments accounted for using the equity method and The combined company's share of profit or loss and other comprehensive income or loss are recognized on the basis of the audited financial statements of each of the affiliates and the joint venture for the same period.

14. Property, Plant and Equipment

Details of the two-period change in property, plant and equipment are set out in Schedule 12.

Among the owned land, part of The combined company's factory land (with a book value of NT$23,507,000) is agricultural land, which is temporarily registered in the name of others, but the agricultural land has been set up as a mortgage to The combined company.

The combined company has not performed an impairment assessment for 2020 and 2019 as there is no indication of impairment.

Depreciation expense is accrued on a straight-line basis over the following number of years of useful life ：

Land improvements	3 to 40 years
Buildings
Plant main buildings	20 to 55 years
Mechanical and power	5 to 40 years
equipment
Engineering System	3 to 55 years
Others	2 to 25 years
Machinery	2 to 25 years
Transportation equipment	3 to 15 years
Other equipment	2 to 25 years

For the amount of property, plant and equipment pledged as security for loans by The combined company, see Note 38.

15. Lease Agreement

(1) Right-of-use asset

Right-of-use asset carrying amount Land Buildings Transportation equipment Other equipment Additions of right-of-use asset Depreciation expense of right-of-use asset Depreciation expense Land Buildings Transportation equipment Other equipment	December 31 2020 $ 328,818 37,984 3,175 590 $ 370,567 2020 $ 27,455 $ 10,287 40,155 1,070 4,124 $ 55,636	December 31 2019	December 31 2019
			$ 347,614 99,191 449 4,714 $ 451,968 2019 $ 132,133 $ 11,342 35,414 1,657 4,127 $ 52,540

Except for the above additions and recognition of depreciation expense, The combined company's right-of-use assets are not subject to significant sublease or impairment in 2020 and 2019.

See Note 38 for the amount of the right-of-use asset that is set as a guarantee for the loan.

(2) Lease liabilities

December 31 2020 Lease liabilities carrying amount Current $ 27,739 Non-current $ 14,435 The discount rate range of the Lease liabilities is as follows: December 31 2020 Land - Buildings 1.32%`～`4.73% Transportation equipment 1.41%`～`1.45% Other equipment 1.78%	December 31 2019
	$ 46,679 $ 58,701 December 31 2019
	1.82% 1.34%`～`4.73% 1.34% 1.78%`～`1.9%

The discount rate range of the Lease liabilities is as follows:

(3) Important Tenant Activities and Terms

The combined company leased certain pieces of land for factory and office use for a term of 40 to 50 years. At the end of the lease term, the combined Company has no priority purchasing rights for the leased land and buildings.

The right-of-use asset lease period is as follows.

Land June 2047 to December 2068 Buildings March 2022 to March 2023 Transportation equipment July 2023 to April 2024 Other equipment February 2021

(4) Other leasing information

Short-term leasing expense Total cash used in leasing	(	2020 $ 5,025 $ 52,416 )	(	2019 $ 10,492 $ 55,686 )

All commitments under leases commencing after the balance sheet date for the lease period are as follows:

Lease Commitment	December 31 2020 $ 4,870	December 31 2019 $ 2,501

16. Investment fixed properties

Changes of land use right and uildings are as follows:

Costs Beginning Balance Disposal of the year Net foreign exchange difference Ending Balance Accumulated depreciation Beginning Balance Disposal of the year Depreciation expense Net foreign exchange difference Ending Balance Year end net		2020 $ 145,772 - 4,187 $ 149,959 $ 81,056 - 3,415 417 $ 84,888 $ 65,071		2019
			( ( ( (	$ 202,653 43,591 ) 13,290) $ 145,772 $ 84,789 7,518 ) 4,285 500) $ 81,056 $ 64,716

The combined company disposed of certain investment properties in fiscal year 2019 and recognized a gain on disposal of investment properties of NT$14,409,000 under other gains and losses in the Consolidated Statement of Income.

Investment properties are depreciated on a straight-line basis over 20 years of useful

life.

The fair value of investment property as of December 31, 2019 was NT$202,384,000, which was based on a valuation performed by Evermore Valuation Joint Office, an independent non- related party, as of December 31, 2019. The valuation was performed using the discounted cash flow analysis method. There was no significant change at the fair value as of December 31, 2020 compared to December 31, 2019.

Please refer to Note 38 for the amount of investment property pledged as collateral for loans.

17. Goodwill

The goodwill represents the increase in the indirect ownership of Bright Wisdom Ltd. by the subsidiary Tung Ming Company in 2011. The initial carrying value of the equity-method investments was the carrying value as of January 1, 2011. The difference between the carrying value and the net equity includes goodwill of NT$12,444,000, which arose from the business combination of Bright Wisdom Ltd. which became a subsidiary of The combined company from a related party at the end of 2014.

The combined company also acquired Jon Da Company in September 2020 and recognized goodwill totaling NT$552,000 for the difference between the consideration transferred and the fair value, see Note 12(16) attached.

The combined company did not recognize any impairment loss on goodwill in 2020 and 2019.

18. Other Intangible Assets

Computer Software Emissions rights	December 31 2020 $ 3,414 12,009 $ 15,423	December 31 2019	December 31 2019
			$ 4,646 12,648 $ 17,294

Costs Balance at January 1 2019 Purchase of the year Net foreign exchange difference Balance at December 31 2019 Accumulated amortization Balance at January 1 2019 Amortization fee Net foreign exchange difference Balance at December 31 2019 Net at December 31 2019 Costs Balance at January 1 2020 Purchase of the year Net foreign exchange difference Subsidiary Disposal Net at December 31 2020 Accumulated amortization Balance at January 1 2020 Amortization fee Net foreign exchange difference Subsidiary Disposal Balance at December 31 2020 Net at December 31 2020		Computer software $ 7,937 1,430 18) $ 9,349 $ 3,403 1,307 7) $ 4,703 $ 4,646 $ 9,349 565 25) 970) $ 8,919 $ 4,703 1,252 18) 432) $ 5,505 $ 3,414		Emissions Rights $ 17,159 - 681) $ 16,478 $ 3,074 917 161) $ 3,830 $ 12,648 $ 16,478 - 258 - $ 16,736 $ 3,830 821 76 - $ 4,727 $ 12,009		Total
	( ( ( ( ( (		( (		( ( ( (	$ 25,096 1,430 699) $ 25,827 $ 6,477 2,224 168) $ 8,533 $ 17,294 $ 25,827 565 233 970) $ 25,655 $ 8,533 2,073 58 432) $ 10,232 $ 15,423

Except for the recognition of amortization fee, there were no significant additions, disposals and impairments to The combined company's other intangible assets in 2020 and 2019.

Emissions Rights, which were acquired by a subsidiary in China in March 2015 for a fee, are accrued on a straight-line basis over 20 years. Computer software is amortized on a straight-line basis over 1-8 years.

19. Prepayments

Current Prepayment for purchases Prepayment for plating fee Prepayment for leasing fee Prepayment for insurance fee Others Other Assets Current Input Tax Tax Overpaid Retained for Offsetting the Future Tax Payable Refundable Tax Office supplies Others Non-current Prepayment for equipment Long-term receivables Loan (1)Short-term loan Securred loan (see Note 38) Bank loan Unsecured loan Bank loan by line of credit	December 31 2020 $ 100,052 4,090 2,174 913 49,514 $ 156,743 December 31 2020 $ 383,971 115,350 37,493 4,530 20,189 $ 561,533 $ 43,003 732 $ 43,735 December 31 2020 $ 3,849,446 2,551,511 $ 6,400,957	December 31 2019	December 31 2019
		$ 101,078 5,837 3,069 2,707 87,907 $ 200,598 December 31 2019
		$ 564,128 84,321 49,194 6,781 23,716 $ 728,140 $ 159,641 2,087 $ 161,728 December 31 2019
			$ 2,437,498 2,832,784 $ 5,270,282

20. Other Assets

21. Loan

(1)Short-term loan

The annual interest rates of bank loans are 0.79% to 6.00% and 0.97% to 6.00% in 2020 and 2019, respectively. The amount of fully-guaranteed short-term secured loans on December 31,2020 and 2019 is NT$1,393,000,000 and NT$970,613,000, respectively.

(2)Short-term notes and bills payable

Commercial Paper Payable Less: Discount on short-term notes and bills payable	December 31 2020 $ 710,000 499 $ 709,501	December 31 2019	December 31 2019
			$ 430,000 210 $ 429,790

Outstanding short-term notes and bills payable are as follows:

December 31 2020

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Grand Bills Finance Corp. Taiwan Cooperative Bills Finance Corp. China Bills Finance Corp. Mega Bills Finance Co. Ltd. Dah Chung Bills Finance Corp. Da Ching Bills Finance Corp. Taiwan Finance Corp. International Bills Finance Corp. O-Bank	$ 50,000 100,000 50,000 50,000 50,000 50,000 50,000 50,000 260,000 $ 710,000	$ 20 133 3 5 41 81 28 5 183 $ 499	$ 49,980 0.500 none $ - 99,867 0.902 none - 49,997 0.400 none - 49,995 0.852 none - 49,959 0.850 none - 49,919 1.040 none - 49,972 1.140 none - 49,995 0.650 none - 259,817 0.330 none - $ 709,501

December 31 2019

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Collateral
Discount Carrying Interest rate Name of Carrying
Guarantor/Acceptance Agency Face amount amount amount collars( ％ ) collateral amount
Commercial Paper Payable
Grand Bills Finance Corp. $ 50,000 $ 16 $ 49,984 0.750 none $ -
Taiwan Cooperative Bills Finance Corp. 100,000 25 99,975 0.902 none -
China Bills Finance Corp. 50,000 17 49,983 0.600 none -
Mega Bills Finance Co. Ltd. 50,000 16 49,984 0.852 none -
Dah Chung Bills Finance Corp. 50,000 57 49,943 0.852 none -
Da Ching Bills Finance Corp. 30,000 5 29,995 1.052 none -
Taiwan Finance Corp. 50,000 57 49,943 0.850 none -
International Bills Finance Corp. 50,000 17 49,983 0.750 none -
$ 430,000 $ 210 $ 429,790
(3) Long-term bank loan
December 31 2020 December 31 2019
Secured Loan
Bank loan 1. $ 12,000 $ 1,128,000
Syndicated Loans 2. 2,561,628 2,994,470
Less: Syndicated Loans
Arrangement Fee 6,023 6,416
2,567,605 4,116,054
Unsecured loan
Bank line of credit loans1. 896,352 430,985
3,463,957 4,547,039
Less: classified as the part due
within one year 282,952 1,174,746
$ 3,181,005 $ 3,372,293
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(3) Long-term bank loan

1. Bank Guarantees and Credit Loans

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Expiry Date Significant Terms December 31 2020 December 31 2019
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Guaranteed Loans Bank loan 2020.03.30`～` 2020.08.12 The principal is repaid at a time when it is due. Bank loan 2024.08.15 From September 2021, average amortization of principal in 36 installments. Unsecured loan Bank line of credit loans 2022.01.19`～` 2025.03.20 Since July 2017, the principal has been amortized on an average half-year basis. This loan is intended to remit the capital required to set up the Vietnam plant in the investment share capital. Bank line of credit loans 2022.08.05 The first installment will be made 9 months after the first utilization of the credit line, and every 3 months thereafter, in a total of 10 equal installments. Bank line of credit loans 2026.05.15`～` 2029.07.09 From April 2022, the principal will be repaid in average monthly installments. Bank line of credit loans 2025.08.21`～` 2029.11.12 The principal will be repaid in equal monthly installments beginning in September 2021. Bank line of credit loans 2025.10.08 The average monthly principal repayment has been made since November 2021. Bank line of credit loans 2023.09.30 The principal will be repaid in 24 equal monthly installments beginning in October 2021. Less: classified as the part due within one year	$ - 12,000 240,000 14,952 250,000 293,400 88,000 10,000 908,352 106,952 $ 801,400	$ 1,128,000 - 100,000 22,485 235,000 73,500 - - 1,558,985 1,174,746 $ 384,239

The interest rates as of December 31, 2020 and 2019 are 0.21% to 1.79% and 0.21% to 3.48% per annum, respectively. fully guaranteed loans are fully guaranteed at December 31, 2019. loans are fully guaranteed at December 31, 2019.

2.Bank Syndications signed on February 13 2019

`－` (1) Bank Syndication Quota NT$2,200,000,000

On February 13, 2019, the Company entered into a syndicated credit agreement with a syndicate of banks for a total amount of NT$2,200,000, 000,the purpose of which is to repay loans from financial institutions and to replenish medium-term operating revolver.

As the financial ratios in the consolidated financial statements for the second quarter of 2020 did not meet the requirements of the loan agreement, the Company applied to the syndicated credit syndicate for a waiver of the financial ratios in the 2020 semi-annual and annual reports and for a new guarantee line of NT$800,000,000 (Item B) for the issuance of commercial paper (the total amount of Item A and Item B to be utilized shall not exceed the total credit line of NT$2,200,000,000), and the first supplementary contract was signed on November 30, 2020.

Terms and Conditions

Item A Item B (Commercial Paper Guarantee) Less: As part of a one-year maturity		Line of Credit $ 2,200,000 800,000 $ 3,000,000		UsedA	m	ount December 31 2019 $ 2,200,000 - 2,200,000 - $ 2,200,000	Credit Period From the date of first use to the date of expiration of 5 years From the date of first use to the date of expiration of 5 years.	Annual interest rate 1.797% 0.85%	Credit granting method
				December 31 2020 $ 1,400,000 799,932 2,199,932 176,000 $ 2,023,932
									Should not be revolving use Revolving use is allowed.

Settlement method

Item A: The 30-month maturity date from the first drawdown date (21 February 2019) will be the first installment. Thereafter, the outstanding principal balance of Item A will be amortized in six installments at a rate of six installments. Of these, 8 per cent were amortized for the first to fifth installments and 60 per cent for the sixth installment. However, if the date of amortization of the balance of principal for any period as set out in the foregoing manner will be later than the final maturity date, the final maturity date shall be the amortization date of the principal for that period.
Item B: The full payment obligation shall be fulfilled on the maturity date of the commercial promissory note at the face amount as scheduled, and the first installment shall expire 30 months from the date of the first use, and thereafter the amount shall be reduced in six installments at a rate of one every six months. Among them, the first to the fifth phase of the amortization and decrement of 8%, the sixth phase of the amortization and decrement of 60%.

`－` (2) Bank Syndication Quota USD28,000,000

On February 13, 2019, De Shen (Cayman) Holdings Co., Ltd., a
subsidiary of the Company, entered into a syndicated credit facility agreement with a syndicate of banks for a total amount of USD28,000,000 for the repayment of loans from financial institutions, including but not limited to the outstanding balance of the old syndicated loan and the replenishment of medium-term operating revolver.

Terms and Conditions

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Used Amount
Line of Credit December 31 2020 December 31 2019 Credit Period Annual interest rate Credit granting method
USD28,000,000 $ 361,696 $ 794,470 From the date of 1.1% to 1.11% and The total amount of the credit
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Line of Credit December 31 2020 USD28,000,000 $ 361,696	December 31 2019 $ 794,470	Credit Period From the date of	Annual interest rate 1.1% to 1.11% and	Credit granting method The total amount of the credit
(USD12,700,000)	(USD26,500,000)	first use to the	2.76% to 2.79%	facility is to be utilized on a
		date of	for 2020 on	recurring basis, with the first
		expiration of	December 31,	installment of 30 months from the
		five years.	2019 and 2020,	date of initial utilization (February
			respectively.	13, 2019) and subsequent
				installments every six months,
				with the total amount of the credit
				facility being reduced in six
				installments of eight percent (8%)
				from the first to the fifth
				installment and sixty percent
				(60%) from the sixth installment.

(3) Financial Ratios

During the term of this contract, the Company's consolidated financial statements shall maintain the ratios shown below:

A. Current Ratio (Current Assets/(Current Liabilities － Dividends payable)) ︰ shall not be less than one hundred percent (100%) (Inclusive).
－－
B. Liabilities Ratio:(Total Liabilities Dividends Payable Bank loans secured by full certificates of deposit)/Net of tangibles: shall not be higher than two 。
hundred percent (200%) (inclusive)
C. Interest covers multiplier ((Net income before tax ＋ Finance costs ＋ Depreciation Depreciation ＋ Amortization)/Finance costs): 6 times (inclusive) above.
－
D. Net of Tangibles (Equity(include minor shareholdings) Intangible Assets ＋ Dividends payable): No less than NT$4.5 billion (inclusive)
The combined company's pledges to secure long-term loans are described in
Note 38.

22. Notes Payable and Accounts Payable

(1) Notes Payable

Payable and Accounts Payable otes Payable
Occurrence due to business Occurrence due to nonbusiness – purchase of Property, Plant and Equipment	December 31 2020 $ 70,882 1,283 $ 72,165	December 31 2019
			$ 142,999 2,448 $ 145,447

(2) All accounts Payable for business.
(3) The combined company has a financial risk management policy to ensure that all payables are repaid within the prearranged credit terms.

23. Other accounts payable

Payroll payable, bonus, Remuneration for Employees and Directors Utilities Payable Commission Payable Equipment Payable Leave Payable Business tax payable Others	December 31 2020 $ 184,518 68,793 46,690 33,189 8,218 7,200 149,588 $ 498,196	December 31 2019	December 31 2019
			$ 223,319 59,484 37,425 34,938 16,008 124,089 174,053 $ 669,316

24. Long-term deferred income

Government Grants	December 31 2020 $ 49,376	December 31 2019 $ 34,853

This represents government subsidies from environmental improvement projects, energy conservation projects and production line technology renovation, which has been recorded as deferred income and transferred to profit or loss over the useful lives of the related assets of 5 to 15 years.

Apex (Anqing) Textile Co., Ltd received a land use right grant of NT$25,697,000 (CNY5,860,000) in 2019, which was recorded under deferred revenue and amortized to income over the 50-year life of the land use right.

25. Refund Liability

Beginning Balance Current year provision (reversal) of refund liability Subsidiary Disposal Foreign exchange difference Ending Balance		2020 $ 6,523 1,950 ) 860 ) 8) $ 3,705		2019
	( ( (		(	$ 5,961 1,077 - 515) $ 6,523

26. Post-employment benefit plan

(1) Defined contribution plan

The Labor Pension Act, which is a defined post-employment contribution plan administered by the government, is applicable to The combined company and its domestic subsidiaries, and contributes 6% of employees' monthly salaries to the individual accounts of the Labor Insurance Bureau.

The employees of The combined company's subsidiaries in China and Vietnam are members of the post-employment benefit plan operated by the local governments in China and Vietnam. The subsidiaries are required to contribute a certain percentage of

payroll costs to the post-employment benefit plan in order to fund the plan. The combined company's obligation to this government-operated post-employment benefit plan is only to contribute a specific amount.

(2) Defined benefit plan

The pension plan of The combined company and its domestic subsidiaries under the Labor Standards Act in Taiwan is a government-administered defined benefit pension plan. The employees' pension payments are based on the average salary for the six months prior to the date of approved retirement. The Company contributes 2% to 4% of the employees' monthly salaries to the pension fund, which is deposited in the name of the Labor Pension Fund Supervisory Committee in a special account in the Bank of Taiwan. If the balance of the special account is not sufficient to pay the employees who are expected to meet the retirement requirements in the following year before the end of the year, the difference will be withdrawn in one lump sum by the end of March of the following year. The management of the special account is entrusted to the Bureau of Labor Funds, Ministry of Labor, and The combined company has no right to influence the investment management strategy.

The amounts of defined benefit plan included in the consolidated balance sheets are shown below:

Defined benefit obligation current value Plan assets at fair value Net defined benefit liabilities(assets)	December 31 2020 $ 187,855 ( 193,331) ( $ 5,476 )	December 31 2019	December 31 2019
	( (	(	$ 304,916 249,372) $ 55,544

Net defined benefit liabilities changes:

1 January 2019 Current Service Costs Interest expense(income) Recognized in profit or loss Re-measurement Planning assets remuneration (In addition to the amount included in net interest) Actuarial losses(income) Changes in demographic assumptions Changes in financial assumptions Experience Adjustment Recognized in other comprehensive loss or income (Continued)	Defined benefit obligation current value $ 318,765 2,918 3,140 6,058 - 413 6,826 6,598 13,837	Plan assets at fair value ($ 254,572) - ( 2,604) ( 2,604) ( 8,881 ) - - - ( 8,881)	Net defined benefit liabilities $ 64,193 2,918 536 3,454 ( 8,881 ) 413 6,826 6,598 4,956

(continued from the previous page)

Employer’s contribution Benefit expenditures December 31 2019 Current Service Costs Interest expense(income) Recognized in profit or loss Re-measurement Plan Assets remuneration (In addition to the amount included in net interest) Actuarial losses(income) Changes in demographic assumptions Changes in financial assumptions Experience Adjustment Recognized in other comprehensive loss or income Employer’s contribution Benefit expenditures Disposal of Subsidiary December 31 2020	Defined benefit obligation current value $ - ( 33,744) 304,916 2,312 1,841 4,153 - 16 4,271 ( 26,226) ( 21,939) - ( 42,433) ( 56,842) $ 187,855	Plan assets at fair value ($ 17,059) 33,744 ( 249,372) - ( 1,659) ( 1,659) ( 7,287 ) - - - ( 7,287) ( 29,725) 42,433 52,279 ( $ 193,331)	Net defined benefit liabilities ($ 17,059) - 55,544 2,312 182 2,494 ( 7,287 ) 16 4,271 ( 26,226) ( 29,226) ( 29,725) - ( 4,563) ( $ 5,476)

The amounts recognized in profit or loss for defined benefit plans are summarized by function as follows.

Operation cost Marketing Expense Management Expense R&D Expense		2020 $ 1,410 382 320 382 $ 2,494		2019
				$ 2,093 464 473 424 $ 3,454

The combined company is exposed to the following risks as a result of the Labor Standards Act pension system.

1.Investment Risk: Bureau of Labor Funds, Ministry of Labor invests its labor pension funds in domestic and foreign equity securities, debt securities and bank deposits through its own use and entrusted operations, but the amount of Plan Assets allocated to the combined company is based on the income at an interest rate not lower than the local bank's two-year time deposit rate.
2.Interest Risk: The decrease in interest rates on government bonds will increase the current value of the defined benefit obligation, but the return on investment in plan assets will also increase, which will have a partially offsetting effect on the net defined

benefit obligation.

3.Payroll Risk: The defined benefit obligation current value is calculated by reference to the future salary of the plan member. Therefore, an increase in plan members' salaries will increase the defined benefit obligation current value.

The defined benefit obligation current value of The combined company was actuarially determined by a qualified actuary with the following significant assumptions as of the measurement date.

Discount rate Expected rate of salary increase	December 31 2020 0.2%`～`0.5% 1.5%`～`2%	December 31 2019
		0.6%`～`0.75% 0.5%`～`2%

The amount by which the defined benefit obligation current value would increase (decrease) if there were reasonably possible changes in significant actuarial assumptions, respectively, with all other assumptions held constant, is as follows

Discount Rate Add: 0.1% Less: 0.1% Expected rate of salary increase Add: 0.1% Less: 0.1%	December 31 2020 ( $ 1,693 ) $ 1,716 $ 1,663 ( $ 1,644 )	December 31 2019	December 31 2019
	( (	( (	$ 2,776 ) $ 2,815 $ 2,732 $ 1,891 )

The sensitivity analysis above may not reflect actual changes in the current value of the defined benefit obligation because actuarial assumptions may be correlated with each other and changes in only one assumption are unlikely.

Amount expected to be withdrawn within 1 year Average Period of Defined Benefit Obligation Expiration	December 31 2020 $ 9,919 4.3`～`9.3 years	December 31 2019 $ 14,244 5.1`～`9.4 years

27. Equity

(1) Common Stocks

Authorized Shares (1000 shares) authorized capital stock Number of shares issued and fully paid (1000 shares) Issued capital stocks	December 31 2020 480,000 $ 4,800,000 384,566 $ 3,845,657	December 31 2019 480,000 $ 4,800,000 384,566 $ 3,845,657

The issued common shares have a par value of $10 per share and each share is entitled to one vote and the right to receive dividends.

On June 21, 2019, the Board of Directors resolved to issue 50,000,000 new shares with a par value of $10 per share at a premium of $22 per share. The above cash capital increase was approved and reported by the Securities and Futures Bureau of the Financial Supervisory Commission on July 18, 2019, and the Board of Directors resolved to set September 20, 2019 as the base date for the capital increase, and the legal registration procedures have been completed.

(2) Capital surplus

Capital surplus
May be used to make up losses, pay cash or capitalize (Note) Stock Issuance Premium Corporate bond conversion premium Treasury Stocks Transactions Actual acquired or the difference between the actual acquisition or disposal price of a subsidiary and its carrying value (Note 12)	December 31 2020 $ 617,063 32,325 77,146 65,024 $ 791,558	December 31 2019
			$ 790,118 32,325 69,687 50,039 $ 942,169

Note: Such capital surplus may be used to cover losses or, when the Company has no losses, to distribute cash or to capitalize capital, provided that such capitalization is limited to a certain percentage of the paid-in capital each year.

On June 21, 2019, the Board of Directors resolved to issue 50,000,000 new shares in cash, of which the share issuance premium was NT$597,250,000 (net of securities underwriting expenses of NT$2,750,000), and the portion reserved for employee subscription was recognized as salary expense of NT$737,000 based on the fair value of the stock options, and capital surplus-employee stock options were also recorded, which was transferred to capital surplus-share issuance premium after the completion of the cash capital increase.

(3) Retained Earnings and Dividends Policy

In accordance with the Company's Articles of Company, if there is any surplus in the annual accounts, the Company shall first pay taxes to cover the deficits of previous years and then set aside 10% as legal reserve, but if the legal reserve has reached the Company's paid-in capital, it may not be set aside, and the rest shall be set aside or reversed to special reserve in accordance with the law, and the remaining amount shall be added up. The accumulated undistributed earnings of prior years shall be retained by the board of directors at its discretion, depending on the operational needs, to prepare a proposal for the distribution of earnings and submit it to the shareholders' meeting for resolution on the distribution of dividends to shareholders. The Company's policy on the distribution of employees' and directors' remuneration is described in Note 29-(8) "Employee Compensation and Directors' Remuneration".

Under the objective of maintaining schedule dividends, the Board of Directors shall, in principle, distribute not less than 50% of the distribu schedule earnings, of which the cash portion of dividends and bonuses to shareholders shall not be less than 10% of the shareholders' distribution, subject to adjustment based on the Company's performance and capital requirements. The cash portion of dividends and bonuses to shareholders shall not be less than 10% of the total amount distributed to shareholders, subject to adjustments based on the Company's performance and capital requirements.

The legal reserve shall be set aside until the remaining balance reaches the Company's total paid-in capital and may be used to cover losses. If the Company has no deficit, the excess of the legal reserve over 25% of the total paid-in capital may be distributed in cash, in addition to being capitalized.

The Company follows the letters: No. Financial-Supervisory-Securities-Issuing1010012865, No. Financial-Supervisory-Securities-Issuing-1010047490, and No. Financial-Supervisory-Securities-Issuing-1030006415 and the "Q&A on the Application of IFRSs to the Presentation of Special Reserve", etc. The Company has presented and reversed the presentation of special reserve.

At the shareholders' meetings held on June 11, 2020 and June 21, 2019, the Company resolved to distribute earnings for the years 2019 and 2018 respectively as follows:

follows:
Legal reserve Special reserve Cash dividends Cash dividends per share(NT$)	2019 $ 55,379 108,914 403,794 1.05	2018
		$ 20,216 12,408 184,011 0.55

The Company also resolved at the regular shareholders' meeting on June 11, 2020 to distribute cash dividends (NT$0.45 per share) at a capital surplus - share issue premium of NT$173,055,000 and on June 21, 2019 to distribute cash dividends (NT$0.95 per share) at a capital surplus - share issue premium of NT$317,837,000.

The Company has proposed to cover the loss by legal reserve of NT$162,083,000 at the board of directors' meeting on March 15, 2021.

(4)Special reserve

Special reserve
Beginning Balance Made special reserve Deductions from other equity Ending Balance		2020 $ 293,042 108,914 $ 401,956		2019
				$ 280,634 12,408 $ 293,042

Upon the distribution of earnings, a special reserve is provided for the difference between the net decrease in other stockholders' equity recorded at the end of the reporting period and the special reserve provided for the first time using IFRSs. If the balance of the decrease in other stockholders' equity subsequently reverses, the earnings may be distributed as part of the reversal.

(5)Other Equities

Exchange differences on translation of financial statements of foreign operating
institutions

Beginning Balance Current Year Occurred Conversion differences of foreign operating institutions Related taxes of foreign operating institutions Related company for using equity method/Shares of joint ventures Other comprehensive loss/income of the year Dispose subsidiaries Changes in ownership equities of subsidiaries Ending Balance	( ( ( (	2020 $ 451,447 ) 119,345 ) 18,096 26,815 74,434 ) 12,788 422 $ 512,671 )	( ( ( ( (	2019 $ 294,358 ) 169,860 ) 39,271 26,500 ) 157,089 ) - - $ 451,447 )

2.Financial liabilities at fair value through other comprehensive profit and loss unrealized evaluation loss and income.

Beginning Balance Currently generated Unrealized gains or losses/Equity Instruments Share of affiliated companies using the equity method Total other comprehensive income Changes in ownership equities in subsidiaries Transfer of accumulated gain or loss on disposal of equity instruments to retained earnings Closing balance (6)Non-controlled Equity Beginning Balance Net income Total other comprehensive income Exchange differences on translation of financial statements of foreign operating institutions Financial assets at fair value through other comprehensive profit and loss unrealized gains or losses Defined benefit plan re-measurements Income tax related to defined benefit plan re-measurement Income taxes related to the translation of financial statements of foreign operating entities Cash dividends allocated Return of shares in the liquidation of subsidiaries Subsidiary Disposal Non-Controlled Equity increase Non-Controlled Equity decrease Ending Balance	( (	2020 $ 49,491 18,335 1,332) 17,003 1,102 11,428) $ 56,168 2020 $ 795,067 653 4,881 11,238 - - 209 45,663 ) - 189,185 ) 219,188 45,922) $ 750,466		2019 $ 1,316 48,175 - 48,175 - - $ 49,491 2019
	( ( (		( ( ( ( (	$ 798,168 56,442 18,498 ) 17,057 387 75 ) 377 43,842 ) 5,186 ) - 95,561 105,324) $ 795,067

(7)Treasury Stocks

Shares of parent company held by subsidiaries. (1000 shares) Shares in starting period increase (Note 1) decrease (Note 2) Shares in period end		2020 1,218 25 1,243) -		2019
	(			1,137 81 - 1,218

Note 1: The Company's shareholding in Lucky Unique Enterprise Company increased by 1.22% and 3.96% in 2020 and 2019 respectively, representing a consolidated shareholding of 25,000 shares and 81,000 shares in the Company.
Note 2: The Company disposed of Lucky Unique Enterprise Company's shares in 2020 and lost control of Lucky Unique Enterprise Company. Therefore, Lucky Unique Enterprise Company's shares are no longer treated as treasury stock, and the market price of the Company's shares and the carrying amount of treasury stock are increased by the capital surplus - treasury stock of NT$7,459,000.
Lucky Unique Enterprise Company, a subsidiary of the Company, holds shares of
the Company (Lucky Unique Enterprise Company is classified as Financial liabilities at fair value through other (Lucky Unique Enterprise Company is classified as financial liabilities at fair value through other comprehensive profit and loss-noncurrent), and the Company is included in Treasury Stocks based on the percentage of consolidated holdings.

Lucky Unique Enterprise Company holds the Company's shares for investment purposes, and the related information is as follows:

Name of Subsidiary December 31 2019 Lucky Unique Enterprise Company Belong to the Company	Number of shares (1000 shares) 2,040 1,218	Carrying amount $ 53,143 12,681	Market value
			$ 53,143 31,726

Lucky Unique Enterprise Company received cash dividends of NT$3,060,000 from the Company in 2019, and the Company increased its capital surplus - treasury stock by NT$1,827.000 in proportion to its consolidated shareholding,

The shares held by subsidiaries are treated as treasury stocks, except that they are not allowed to participate in the Company's capital increase and have no voting rights, and have the same rights as ordinary shareholders.

28. Revenue

Sales Revenue		2020 $ 8,594,659		2019 $ 10,919,724

(1) Description of Customer Agreement

Revenue from sales of long- and short-staple fibers

The combined company recognizes revenue and accounts receivable from the sale of short- and long-haul fabrics when the terms of trade are fulfilled. The average credit period of The combined company's merchandise sales is 30 to 120 days. Most of the contracts are recognized as accounts receivable when the merchandise is transferred and The combined company has the unconditional right to receive the consideration. However, for some of these contracts, The combined company is obligated to transfer the merchandise to the customer.

(2) Balance of Contract

Notes receivable (including related party (Notes 10 and 37) Accounts Receivable (including related party)(Notes 10 and 37) Contract liabilities (Included under other current liabilities) Sale of goods	December 31 2020 $ 104,431 $ 1,762,165 $ 50,446	December 31 2019 $ 177,969 $ 1,960,681 $ 86,947	January 1 2019 $ 232,207 $ 1,800,839 $ 2,892

(3) Revenue breakdown from customer contracts

Please refer to Note 43 for revenue breakdowns.

29. Net income (loss) before tax

(1) Other income and loss, net

(1) Other income and loss, net
Net income (loss) on disposal of property, plant and equipment (2) Interest income Bank deposits Financial assets carried at amortized cost (3) Other income Subsidy income Rent income Claim income Sale of tubular assets Sale of cloth samples Dividend income Others (4) Other gains and losses Gains from subsidiary disposal (Note 32) Foreign exchange net loss Financial product evaluation net income (loss) at fair value through profit and loss Gains from Investment fixed assets disposal Others	(	2020 $ 9,383 ) 2020 $ 39,027 3,859 $ 42,886 2020 $ 101,472 18,551 15,243 - 3,499 1,487 64,396 $ 204,648 2020 $ 9,154 219,941 ) 18,301 ) - 52,373) $ 281,461 )		2019 $ 55,618 2019
				$ 50,577 3,679 $ 54,256 2019
				$ 5,916 12,616 26,406 7,375 5,877 1,602 63,356 $ 123,148 2019
	( ( ( (		( ( (	$ - 61,644 ) 34,715 14,409 40,308) $ 52,828 )

(5) Financial costs

Bank loan interest total Amortization of handling fees for syndicated loan cases Lease liabilities interest Less: Amounts included in the cost of qualifying assets (included under property, plant and equipment and prepayments for equipment)		2020 $ 176,059 1,562 1,401 1,305 $ 177,717		2019
				$ 211,865 4,477 1,758 12,034 $ 206,066

Capitalization of interest relevant information as below:

Capitalization of interest amount Capitalization of interest rate (6) Deprecation and Amortization Property, Plant and Equipment Investment fixed property Intangible Assets Right-of-use asset Depreciation expense summary by function Operation cost Operation expense Amortization fee summary by function Operation cost Operation expense		2020 $ 1,305 1.32%`～`4.58% 2020 $ 556,763 3,415 2,073 55,636 $ 617,887 $ 557,453 58,361 $ 615,814 $ 177 1,896 $ 2,073		2019
				$ 12,034 1.33%`～`4.62% 2019
				$ 485,903 4,285 2,224 52,540 $ 544,952 $ 486,822 55,906 $ 542,728 $ 185 2,039 $ 2,224

(7)Employee benefit expense

Employee benefit expense
Short-term employee benefits Payroll Labor and Health insurance fees Others Retirement benefits Defined contribution plan Defined benefit plan (Note 26) Summary by function Operation cost Operation expense		2020 $ 1,087,967 96,672 38,431 1,223,070 112,336 2,494 114,830 $ 1,337,900 $ 823,155 514,745 $ 1,337,900		2019
				$ 1,252,830 94,542 45,626 1,392,998 44,466 3,454 47,920 $ 1,440,918 $ 973,915 467,003 $ 1,440,918

(8)Remuneration to employee and directors

In accordance with the Company's Articles of Incorporation, the Company provides for employee remuneration and director remuneration at a rate of not less than 4% and not more than 3%, respectively, of the pre-tax benefit for the year before the distribution of employee and director remuneration.

The Company does not intend to contribute employee and directors’ remuneration for the year 2020 as the Company's net loss before tax. 2019 employee compensation and director compensation were resolved by the Board of Directors on March 12, 2020 as follows:

Estimation ratio

Estimation ratio
Bonus to employees Bonus to directors Amount Bonus to employees Bonus to directors	2019
	4% 1.5% 2019
	Cash
	$ 25,096 9,411

If there is any change in the amount after the adoption of the annual consolidated financial statements, the change in accounting estimate will be adjusted and recorded in the following year.

There is no difference between the actual amount of employee compensation and remuneration of directors and supervisors for fiscal years of 2019 and 2018 and the amount recognized in the consolidated financial statements for fiscal 2019 and 2018.

Please refer to the Market Observation Post System of the Taiwan Stock Exchange Corporation for information on the remuneration of employees and directors resolved by the Board of Directors of the Company.

(8)Foreign Exchange (loss) income

Foreign Exchange (loss) income
Total foreign exchange income Total Foreign exchange loss Net (loss) income		2020 $ 281,234 501,175) $ 219,941 )		2019
	( (		( (	$ 283,642 345,286) $ 61,644 )

30. Income Tax

(1)Income tax recognized in profit or loss

Income tax expense (income) main items as below:

Current income tax Occurred in current year Unallocated surplus plus tax Prior Year Adjustments Repatriation of foreign exchange surplus Deferred tax Occurred in current year Income tax expense (benefit) recognized in profit or loss		2020 $ 2,714 57 2,952 15,081 105,973 ) $ 85,169 )		2019
	( (		(	$ 50,168 399 9,036 ) - 10,893 $ 52,424

A reconciliation of accounting income to income tax expense (benefit) is as follows:

Net income (loss) before tax Income tax expense (benefit) calculated at statutory tax rate on net income ( loss) before tax Nondeductible expenses in determining taxable income Nonaccrual income in determining taxable income Income tax on inappropriate earnings Unrecognized deductible temporary differences Repatriation of foreign exchange surplus Adjustments for prior years	( ( ( ( (	2020 $ 291,802 ) $ 59,767 ) 169 24,649 ) 57 19,012 ) 15,081 2,952 $ 85,169 )	( ( (	2019 $ 666,887 $ 154,604 194 23,612 ) 399 70,125 ) - 9,036 ) $ 52,424

(2)Income tax recognized in other comprehensive income

			2020		2019
Deferred tax
In respect of the current year
conversion of foreign operating
institutions		$	18,305	$	39,648
Re-measurement of defined benefit
plan
		(	5,678)		1,038
		$	12,627	$	40,686
Curr	ent tax assets and liabilities
		December 31 2020		December 31 2019
Tax	assets
	Tax refund receivable
	(included in other current
	assets)	$	4,710	$	1,828
Tax	liabilities
	Income tax payable	$	5,814	$	14,758

(3)Current tax assets and liabilities

(4)Deferred tax assets and liabilities

Changes in deferred tax assets and liabilities as below:

2020

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Recognized in
Other
Beginning Recognized in Comprehensiv Subsidiary Ending
Deferred tax assets Balance profit or loss e Income Disposal Balance
Temporary differences
Unrealized gross profit of sales $ 54,295 ( $ 2,251 ) $ - 56 $ 52,100
-
Leave Payable 2,700 ( 679 ) ( 886 ) 1,135
Allowance for loss of market 12,684 10,491 - ( 958 ) 22,217
price decline and obsolete and
slow-moving inventories.
Defined benefit obligation 8,838 ( 2,545 ) ( 5,678 ) ( 311 ) 304
Allowace for losses 1,885 7,215 - - 9,100
Exchange differences of foreign 79,477 ( 383 ) 18,305 ( 2,061 ) 95,338
operating institutions
-
Unrealized foreign exchange loss 10,496 24,767 ( 734 ) 34,529
Others 1,549 5,905 - ( 819 ) 6,635
171,924 42,520 12,627 ( 5,713 ) 221,358
Loss Credit 3,644 64,146 - ( 5,741 ) 62,049
$ 175,568 $ 106,666 $ 12,627 ( $ 11,454 ) $ 283,407
Deferred tax liabilities
Temporary differences
Property, Plant and Equipment $ 35,950 ( $ 2,031 ) $ - $ - $ 33,919
- -
Subsidiary inappropriate earnings 17,185 ( 180 ) ( 17,005 )
Defined benefit obligation - 2,904 - - 2,904
$ 53,135 $ 693 $ - ( $ 17,005 ) $ 36,823
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2019

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Recognized in
Other
Beginning Recognized in Comprehensiv Ending
Deferred tax assets Balance profit or loss e Income Balance
Temporary differences
Unrealized gross profit of sales $ 55,287 ( $ 992 ) $ - $ 54,295
-
Leave Payable 2,943 ( 243 ) 2,700
-
Allowance for loss of market price decline and 13,190 ( 506 ) 12,684
obsolete and slow-moving inventories.
Defined benefit obligation 10,417 ( 2,617 ) 1,038 8,838
Allowance for loss 2,335 ( 450 ) - 1,885
-
Foreign exchange differences of foreign operating 39,829 39,648 79,477
institutions
- -
Unrealized foreign exchange loss 10,496 10,496
Investment loss in overseas subsidiaries 22,979 ( 22,979 ) - -
Others 1,548 1 - 1,549
148,528 ( 17,290 ) 40,686 171,924
Loss Credit 5,026 ( 1,382 ) - 3,644
$ 153,554 ( $ 18,672 ) $ 40,686 $ 175,568
Deferred income tax liabilities
Temporary differences
Property, Plant and Equipment $ 38,036 ( $ 2,086 ) $ - $ 35,950
- -
unrealized exchange gain 7,782 ( 7,782 )
-
Subsidiary inappropriate earnings 15,066 2,119 17,185
Others 30 ( 30 ) - -
$ 60,914 ( $ 7,779 ) $ - $ 53,135
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(5) The amount of deductible temporary differences and unused loss credit for deferred income tax assets were not recognized in the consolidated balance sheet.

ncome tax assets were not recognized in the consolidated balance	sheet.	sheet.
Deduct temporary differences Allowance for loss of market price decline and slow-moving inventories. Refund liabilities Defined benefit obligation Loss Credit	December 31 2019
		Amount
		$ 26,074 1,673 3,020 3,666 $ 34,433

(6) Information about unused loss credit

Information about The combined company's loss credit for the year ended December 31, 2020 is as follows

er 31, 2020 is as follows
Balance not yet deducted $ 17,472 673 293,960 $ 312,105	Final credit year
	2027 2028 2030

(7)Aggregate amount of temporary differences related to investments and not recognized as deferred income tax liabilities

As of December 31, 2020 and 2019, taxable temporary differences related to

investments in subsidiaries and not recognized as deferred income tax liabilities amounted to $1,898,201,000 and $1,806,173,000, respectively.

(8)Income tax assessments

The income tax returns of the Company and its subsidiaries, De Fa Company and Chadtex Company, through 2018 have been assessed by the tax authorities.

31. Earnings per share (net loss)

The net income and weighted average number of common stock outstanding that were used in the computation the net income (net loss) of earnings per share (net loss) were as follows:

Net income(net loss)

Net income (net loss) attribuSchedule to the Company’s owners	(	2020 $ 207,286 )		2019 $ 558,021

Shares
Weighted Average Number of outstanding shares Weighted-average treasury stocks - shares of parent company held by subsidiaries Weighted average number of shares of common stock for basic earnings per share calculation Effect of dilutive potential common stock: Employee remuneration Effect of dilutive potential common stock: Employee remuneration Weighted-average number of common shares for the purpose of diluted earnings per share		2020 384,566 642) 383,924 - 383,924	Unit: 1000 shares 2019
	(		(	348,538 1,178) 347,360 1,052 348,412

If the Company has the option to pay employees in stock or cash, the calculation of diluted earnings per share assumes that employee compensation will be paid in stock and is included in the weighted-average number of common shares outstanding for the purpose of calculating diluted earnings per share when the potential common shares have a dilutive effect. The dilutive effect of these potential common shares will continue to be considered in the calculation of diluted earnings per share prior to the issuance of employee compensation shares in the following year.

The Company's net loss for 2020 is based on the fact that the effect of the potential dilutive effect of employee compensation on common stock is not included in the 。 calculation of diluted net loss per share.

32. Subsidiary Disposal

On June 19, 2020, The combined company's board of directors approved the sale of Lucky Unique Enterprise Co., Ltd. to an un related party and completed the transfer of ownership on July 8, 2020. As a result, the Company lost control over Lucky Unique Enterprise Co., Ltd. and its subsidiaries (Tung Ming Company, De Kao Company, De Sin Company and Jie Sen Company), which are responsible for the manufacture and processing of various fiber textile products and import and export trading of The combined company.

(1)Consideration Received

cash and cash equivalents	Lucky Unique Enterprise Company and its subsidiaries $ 195,227

(2)Analysis of assets and liabilities for loss of control

)Analysis of assets and liabilities for loss of control
Current Assets cash and cash equivalents Financial assets at amortized costs `－` current Accounts receivable Other Receivables Inventory Others Non-current Assets Property, Plant and Equipment Intangible Assets Right-of-use asset Deferred tax assets Others Current Liabilities Short –term loans and short-term notes and bills payable Accounts Payable Other accounts payable Tax liabilities Lease liabilities `－` current Others Non-current Liabilities Defined benefit plan liabilities `－` non-current Lease liabilities `－` non-current Others Deferred tax liabilities Net assets disposal	Lucky Unique Enterprise Company and its subsidiaries
	( ( ( ( ( ( ( ( ( (	$ 197,028 310,136 139,423 11,788 54,971 87,816 219,418 538 44,325 11,454 41,295 472,644 ) 60,025 ) 49,135 ) 2,496 ) 12,528 ) 4,118 ) 4,563 ) 32,165 ) 719 ) 17,005) $ 462,794

(3)Subsidiary Disposal income

Subsidiary Disposal income
Consideration received Net assets disposed Non-Controlled Equity Treasury Stocks decrease Capital surplus – Treasury stocks increase Fair value of residual equity Cumulative translation differences from reclassification to profit or loss due to loss of control over a subsidiary Gain on disposal Net cash outflow of Subsidiary Disposal Consideration received in cash and cash equivalents Less: disposal of cash and cash equivalents	Lucky Unique Enterprise Company and its subsidiaries
	$ 195,227 ( 462,794 ) 189,185 ( 12,681 ) ( 7,459 ) 120,464 ( 12,788 ) $ 9,154 Lucky Unique Enterprise Company and its subsidiaries
	(	$ 195,227 197,028 $ 1,801 )

(4) Net cash outflow of Subsidiary Disposal

33. Equity transaction with non-controlled equity

The share transfer of The combined company was carried out successively in 2019 and 2020. However, the share transfer was an organizational restructuring under the common control of the individual. The transaction did not change the control of The combined company over the subsidiary. Please refer to the notes 12 (2), (3), (4), (7), (8) and (15).

January 1 to December 31 2020

Cash consideration paid The carrying amount of the subsidiary's net assets should be transferred to noncontrolling interests based on the relative changes in equity. Equity transaction differences	Best Alliance International Limited any $ - 8,084 $ 8,084	Tung Ming Company $ - ( 1,150 ) ($ 1,150)	Lucky Unique Enterprise Company $ - ( 21,244 ) ($ 21,244)	Chadtex Company
				$ 21,329 ( 22,004 ) ($ 675)

( continued)

( continued from previous page)

Best Alliance International Limited Tung Ming Company Lucky Unique Enterprise Company Chadtex Company ( $ 8,084 ) $ 1,150 $ 21,244 $ 675 Best Alliance Internation al Limited Eden Road Company Tung Ming Company De Licacy Company Bright Wisdom Ltd. $ 122,024 $ 90,515 $ - $ 21,664 $ 74,950 ( 119,541 ) ( 93,027 ) 1,509 ( 22,733 ) ( 82,591 ) $ 2,483 ( $ 2,512) $ 1,509 ( $ 1,069) ( $ 7,641) ( $ 2,483 ) $ 2,512 ( $ 1,509 ) $ 1,069 $ 7,641
	$

( (		( (	$ 74,950 82,591 ) $ 7,641) $ 7,641

34. Non-cash transactions

The combied company has the following non-cash transaction investment in 2020 and 2019.

(1)Acquisition of Property, Plant and Equipment

Affects cash and non-cash investment Additions of property, plant, and equipment Decrease (increase) in equipment payable and notes payable Cash paid for property, plant and equipment		2020 $ 438,872 ( 601) $ 438,271		2019
				$ 1,100,469 162,922 $ 1,263,391

(2)Disposal of Property, Plant and Equipment

Disposal of Property, Plant and Equipment
2020 2019 Cash paid for property, plant, and equipment Disposal proceeds of property, plant, and equipment $ 18,330 $ 449,921 Decrease (increase) in other receivables (including related parties) 244,847 ( 87,665) Cash received for property, plant and equipment $ 263,177 $ 362,256 Disposal of investment property 2020 2019 Cash paid for property, plant, and equipment Proceeds from disposal of investment properties $ - $ 50,482 Decrease (increase) in other receivables 43,030 ( 50,482) Cash received from investment properties $ 43,030 $ - Disposal of the full equity cash receipts of Apex (Shanghai) Textile co., Ltd, De Shen (Samoa) Holdings Co., Ltd. and New Gallant Limited . 2020 2019 Beginning claim for proceeds balance $ 101,599 $ 102,556 Ending claim for proceedsBalance ( 102,011 ) ( 101,599 ) Foreign exchange difference 412 ( 957) Cash received $ - $ -		2019
	(	$ 449,921 87,665) $ 362,256 2019
	( (	$ 102,556 101,599 ) 957) $ -

(3) Disposal of investment property

(4)Disposal of the full equity cash receipts of Apex (Shanghai) Textile co., Ltd, De Shen (Samoa) Holdings Co., Ltd. and New Gallant Limited .

35.Capital Risk Management

Due to the need to maintain adequate capital to support the upgrading of plant and equipment, The combined company will be required to maintain adequate capital. Therefore, the capital management of The combined company is to ensure that the necessary financial resources and operating plans are in place to meet the future needs of working capital, capital expenditure, research and development expenses, debt repayment and dividend payment.

36. Financial Instruments

(1) Fair Value Information - Financial Instruments Not Measured at Fair Value

December 31 2020

December 31 2020
Financial assets Financial assets at amortized cost`－` non-current Chia Her Industrial Co., Ltd. private placement of convertible bonds December 31 2019 Financial assets Financial Assets at mortised cost`－` non-current CHIA HER INDUSTRIAL CO., LTD. private placement of convertible bonds	Carrying amount $ 27,725 Carrying amount $ 25,229		Fair Value
		The 1st level $ -	The 2nd level			Total
						$ 30,576
		The 1st level $ -	The 2nd level		The 3rd level $ 30,792	Total
				$ -		$ 30,792

The above fair value for Level 3 is based on the binomial tree convertible bond valuation model, and the significant unobservable input value used is the stock price volatility.

(2) Fair Value Information - Financial instruments measured at fair value on a repetitive basis
1.Fair value levels

December 31 2020

Fair value levels December 31 2020
Financial assets at fair value through profit or loss Listed stocks in Taiwan derivatives`－`conversion right for public company private placement of convertible bonds Funds beneficiary certificates Total Financial liabilities at fair value through other comprehensive profit and loss`－`current Investments accounted for using equity method `－`Listed stocks in Taiwan Financial liabilities at fair value through other comprehensive profit and loss`－`non-current Investments accounted for using equity method `－`Listed companies in Taiwan private placement of shares Financial liabilities at fair value through profit and loss derivatives`－`Foreign Exchange contract		The 1st level $ 2,856 - 9,387 $ 12,243 $ 38,979 $ - $ -	The 2nd level $ - - - $ - $ - $ 120,056 $ 20,927		The 3rd level $ - 52,461 - $ 52,461 $ - $ - $ -		Total
							$ 2,856 52,461 9,387 $ 64,704 $ 38,979 $ 120,056 $ 20,927

December 31 2019

December 31 2019
Financial assets at fair value through profit or loss Listed stocks in Taiwan derivatives `－`Conversion right for public company private placement of convertible bonds Funds beneficiary certificates Total Financial liabilities at fair value through other comprehensive profit and loss`－`non-current Investments accounted for using equity method `－`Listed companies in Taiwan private placement of shares `－`Domestic unlisted stocks Total Financial liabilities at fair value through profit and loss derivatives `－`Foreign Exchange Rate swap contract		The 1st level $ 9,720 - 8,589 $ 18,309 $ - - $ - $ -		The 2nd level $ - - - $ - $ 109,534 - $ 109,534 $ 2,462		The 3rd level $ - 43,599 - $ 43,599 $ - 1,476 $ 1,476 $ -		Total
								$ 9,720 43,599 8,589 $ 61,908 $ 109,534 1,476 $ 111,010 $ 2,462

There were no transfers between Level 1 and Level 2 fair value measurements in fiscal years of 2020 and 2019.

Reconciliation of financial instruments at Level 3 fair value.

Financial assets at fair value through profit or loss

Convertible right for derivatives`－`private placement of convertible bonds Beginning Balance Recognized in profit or loss (Other benefits and losses) Ending Balance		2020 $ 43,599 8,862 $ 52,461		2019
				$ 7,164 36,435 $ 43,599

3.Level 2 fair value valuation techniques and inputs

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Type of financial Instruments Valuation techniques and inputs
----- End of picture text -----

Type of financial Instruments	Valuation techniques and inputs
Derivatives - Foreign	The discounted cash flow method: The future cash flows
Exchange Rate Swap Contracts	are estimated based on the observable forward exchange
	rate and the contracted foreign exchange rate at the end of
	the period and are discounted at a rate that reflects the
	credit risk of each counter party.
Domestic Listed companies	Evaluated by the B-S option pricing model, based on the
private placement of shares	underlying price, option performance price, risk-free
	interest rate, historical volatility of the underlying and the
	maturity period.

4.Level 3 Fair Value Measurement Techniques and Inputs

The fair value of the derivatives - conversion rights of private convertible bonds is estimated using a binary tree convertible bond valuation model, and the significant unobservable input is the stock price volatility. When the stock price volatility increases, the fair value of these derivatives will increase.

(3) Type of financial Instruments

ype of financial Instruments
Financial assets At fair value through profit or loss Mandatory measurement through profit or loss at fair value Financial assets at amortized cost (Note 1) Financial liabilities at fair value through other comprehensive profit and loss`－`Investments accounted for using equity method Financial Liabilities At fair value through profit or loss - held for trading Measured at amortized cost (Note 2)	December 31 2020 $ 64,704 6,182,733 159,035 20,927 12,112,485	December 31 2019
		$ 61,908 6,440,496 111,010 2,462 12,105,894

Note 1: Balances include cash and cash equivalents, notes and accounts receivable (including related parties), other receivables (including related parties), financial assets carried at amortized cost (both current and non-current) and refundable deposits, and other financial assets carried at amortized cost.
Note 2: The balance includes financial liabilities measured at amortized cost such as short-term borrowings, short-term bills payable, notes and accounts payable (including related parties), other payables (including related parties), long-term bank loans (including those due within one year) and guarantee deposits.
(4) Financial Risk Management Objectives and Policies
The consolidated company's major financial instruments include investments in
equity and debt instruments, receivables, payables, lease liabilities and borrowings. The consolidated company's financial management department provides services to each business unit, coordinates access to domestic and international financial markets, and monitors and manages the financial risks associated with The consolidated company's operations through internal risk reporting that analyzes risk exposures based on the level and breadth of risk. These risks include market risk (including exchange rate risk, interest rate risk and other price risks), credit risk and liquidity risk.

The consolidated company mitigates the effects of these risks by hedging the risk through derivative financial instruments. The use of derivative financial instruments is governed by the policies adopted by The consolidated company's board of directors, which are the written principles for exchange rate risk, interest rate risk, use of derivative financial instruments and non-derivative financial instruments, and

investment of surplus liquidity. Internal auditors review compliance with the policy and the amount of risk exposure on an ongoing basis. The consolidated company does not trade in financial instruments (including derivative financial instruments) for speculative purposes.

Market risk

The main financial risks to which The combined company is exposed as a result of its operating activities are foreign currency exchange rate risk (see (1) below), interest rate risk (see (2) below), and other price risk (see (3) below).

The consolidated company engages in various derivative financial instruments to manage its exposure to foreign currency exchange rate risk, including exchange rate swap contracts to hedge the exchange rate risk arising from foreign sales of goods.

There is no change in The consolidated company's exposure to market risk of financial instruments and its management and measurement of such exposure. (1) Exchange rate risk

The consolidated company engages in foreign currency-denominated sales and import transactions and foreign currency borrowings, which expose The combined company to exchange rate risk. The carrying amounts of The consolidated company's monetary assets and monetary liabilities denominated in non-functional currencies as of the balance sheet date (including monetary items denominated in non-functional currencies that have been eliminated in the Consolidated Financial Statements) are described in Note 41. Sensitivity Analysis

The consolidated company is primarily affected by fluctuations in the U.S. dollar exchange rate. The following Schedule details the sensitivity analysis of The combined company when the functional currency strengthens or weakens by 1% against the U.S. dollar. The sensitivity analysis includes only foreign currency items in circulation. A positive number in the Schedule below represents the amount by which pre-tax income would increase if the functional currency weakened by 1% relative to the U.S. dollar; a negative number in the same amount would affect pre-tax income if the functional currency strengthened by 1% relative to the U.S. dollar.

2020 2019 Loss/income $ 28,339 $ 20,361

This was mainly due to the consolidated company's cash and cash equivalents denominated in U.S. dollars, financial assets measured at amortized cost, receivables, other receivables, payables, other payables and borrowings that were outstanding and not cash flow hedged at the balance sheet date.

The increase in the consolidated company's sensitivity to foreign exchange rates during the year was mainly due to the increase in the combined company's net assets denominated in U.S. dollars.

(2) Interest rate risk

Interest rate risk arises because individuals in the consolidated company borrow funds at both fixed and floating interest rates. The consolidated company manages interest rate risk by maintaining an appropriate mix of fixed and floating interest rates.

The carrying amounts of the consolidated company's financial assets and financial liabilities exposed to interest rate risk as of the balance sheet date were as follows:

as follows:
Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial Liabilities	December 31 2020 $ 2,614,228 3,126,480 1,303,180 7,664,914	December 31 2019
		$ 2,821,013 2,904,644 764,192 7,617,321

Sensitivity Analysis

If interest rates had increased by 1%, The consolidated company's income before income taxes would have decreased by $63,617,000 and $68,531,000 for fiscal years of 2020 and 2019, respectively, with all other variables held constant.

The decrease in The combined company's sensitivity to interest rates for the year was mainly due to the increase in variable interest rate deposits.

(3) Other price risk

The combined company's equity price risk arising from its investment in domestic listed and unlisted securities is insignificant.

2. Credit risk

Credit risk refers to the risk of financial loss resulting from the counter-parties' default on contractual obligations. As of the balance sheet date, The combined company's maximum exposure to credit risk due to non-performance of counter-parties' obligations mainly arises from the carrying amount of financial assets recognized in The combined company's balance sheet.

The combined company's counter-parties are all creditworthy organizations and are not expected to have significant credit risk.

Liquidity risk

The combined company manages and maintains sufficient cash and cash equivalents to support its operations and mitigate the impact of cash flow fluctuations. The combined company's management monitors the use of banking facilities and ensures compliance with the terms of borrowing contracts.

The combined company's working capital and the obtained banking facilities are sufficient to meet future operating requirements, and therefore there is no liquidity risk due to the inability to raise funds to meet contractual obligations.

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

The analysis of the remaining contractual maturities of non-derivative financial liabilities is prepared based on the undiscounted cash flows (including principal and estimated interest) of financial liabilities based on the earliest possible date that The combined company could be required to repay. Accordingly, The combined company's bank loans that may be required to be repaid immediately are listed in the Schedule below at the earliest possible date, without considering the probability that the bank will immediately enforce the right; the maturity analysis of other non-derivative financial liabilities is prepared based on the contractual repayment dates.

The undiscounted interest amount of interest cash flows paid at floating interest rates is derived from the curve of the yield rate at the balance sheet date.

December 31 2020

December 31 2020
No interest-bearing liabilities No interest-bearing liabilities Leasing liabilities Floating rate instrument Fixed rate instrument	Less than 6 months $1,361,911 16,196 6,308,288 904,889 $8,591,284	6 months to 1 year $ - 14,152 258,674 194,140 $ 466,966		1- 9 years
				$ 5,059 15,077 1,218,609 2,091,584 $3,330,329

Further information on the maturity analysis of lease liabilities is as follows:

Lease liabilities December 31 2019 No interest-bearing liabilities No interest-bearing liabilities Leasing liabilities Floating rate instrument Fixed rate instrument		Less than 1 year 1`～`3 years $ 30,348 $ 15,077 Less than 6 months 6 months to 1 year 1- 9 years $1,693,359 $ - $ 2,473 27,568 23,482 63,523 5,803,081 686,830 1,200,869 622,275 19,726 2,267,713 $8,146,283 $ 730,038 $3,534,578	Less than 1 year 1`～`3 years $ 30,348 $ 15,077 Less than 6 months 6 months to 1 year 1- 9 years $1,693,359 $ - $ 2,473 27,568 23,482 63,523 5,803,081 686,830 1,200,869 622,275 19,726 2,267,713 $8,146,283 $ 730,038 $3,534,578	Less than 1 year 1`～`3 years $ 30,348 $ 15,077 Less than 6 months 6 months to 1 year 1- 9 years $1,693,359 $ - $ 2,473 27,568 23,482 63,523 5,803,081 686,830 1,200,869 622,275 19,726 2,267,713 $8,146,283 $ 730,038 $3,534,578
				$ 2,473 63,523 1,200,869 2,267,713 $3,534,578

Further information on the maturity analysis of lease liabilities is as follows ：

Lease liabilities	Less than 1 year $ 51,050		1`～`3 years $ 63,523

The amount of floating rate instruments for the above non-derivative financial assets and liabilities will vary depending on the difference between the floating rate and the interest rate estimated at the balance sheet date.

(2) Liquidity and interest rate risk of derivative financial liabilities

The liquidity analysis of derivative financial instruments is based on total undiscounted cash inflows and outflows for derivative instruments with gross settlement. When the amount payable or receivable is not fixed, the amount disclosed is determined based on the projected interest rate derived from the yield rate curve at the balance sheet date.

December 31 2020

Total Transaction Foreign Exchange Rate swap contract Flow-in Flow-out	1-3 months $ 116,872 ( 120,805) ( $ 3,933)	4-6 months $ 582,161 ( 599,156) ( $ 16,995)	6-12 months	6-12 months
	( (	( (	(	$ 2,848 2,847) $ 1

December 31 2019

1-3 months

Total Transaction

Foreign Exchange Rate swap contract Flow-in $ 276,268 Flow-out ( 278,730 ) ( $ 2,462 )

(5)Transfer of financial assets information

Unit: 1 dollar

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Trading
Partners Sales Amount Cash received Limit Note
2020
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2020
Mega	Bank	USD	29,452	USD	29,452	USD	300,000	The management fee is
								0.75% to 0.8% of the
								invoice amount + $15
2019
Mega	Bank	USD	75,443	USD	65,013	USD	300,000	The management fee is
								0.75% to 0.8% of the
								invoice amount + $15

。 The above credit is recurring

37. Related Parties’ Transactions

All transactions, account balances, revenues and expenses between the Company and

its subsidiaries (which are related parties of the Company) were eliminated upon consolidation and are therefore not disclosed in this note. In addition to those disclosed in other notes, the transactions between the combined company and other related parties were as follows.

(1) Names of related parties and their relationships

Name of related party Relationship with the combined company Perfect Step Ltd. Affiliated Companies Vietnam ATAGO Company Affiliated Companies Lucky Unique Enterprise Company Affiliated Companies (Note 1) E Textile Co .,Ltd. Subsidiary of an affiliated company, Lucky Unique Enterprise Co., Ltd. (Note 1)

(continued)

(continued from previous page)

Name of related party Relationship with the combined company Gain Faith Investments Ltd Subsidiary of an affiliated company, Lucky Unique Enterprise Co., Ltd. (Note 1) Tung Ming Company Subsidiary of an affiliated company, Lucky Unique Enterprise Co., Ltd. (Note 1) De Kao Company Subsidiary of an affiliated company, Lucky Unique Enterprise Co., Ltd. (Note 1) YEH Fu-lin Key management YEH Chia-ming Key management YEH Chia-how Key management YEH Wei-li Key management YU Yi-Nung Key management Jei Jom Enterprise Co. Ltd. Subsidiary of Joint Venture Era Nouveau International Co., Ltd. Future Tycoon Holdings Co., Ltd. The Special Assistant to the Chairman of the Company is a director of the Company (Note 2) Future Tycoon Enterprise Co., Ltd. The Special Assistant to the Chairman of the Company is a director of the Company (Note 2) Fu-hwa investment Co. Ltd. The chairman is the same person DNE Energy Inc. The chairman is the same person Doyo Enterprise Co., Ltd. The Chairman is a director of the Company Sheng-Bo Technology Corp. The Chairman is a director of the Company Fuson International Co., Ltd. The Chairman is a director of the Company Fu-fa International Investment Co. The Chairman is a supervisor of the Company Ltd.. Chuan Yeh Investment Co. Ltd. The Vice Chairman is the Chairman of the Company Thrive Power Limited The Vice Chairman is the Chairman of the Company

Note1 : Subsidairy of the Company until July 8, 2020. Note2 :The president of the Company is a director of the Company until July 26, 2020.

(2)Operation Income

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Item Type of related party 2020 2019
Sales of goods sold The Special Assistant to the Chairman of $ 376,206 $ 392,515
the Company is a director of the
Company (Note 2)
-
Affliated company (Note1) 277,067
Affliated company 9,470 8,425
-
Subsidairy of affliated company Lucky 17,005
Unique Enterprise Company (Note 1)
Subsidairy of the joint venture New 3,921 5,465
Premium Enterprise Co., Ltd.
$ 683,669 $ 406,405
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The combined company's sales prices to related parties are comparable to those of non-related parties, and the collection terms are one to three months at the end of each month, which are not materially different from those of non-related parties.

(3)Purchase

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T y p e o f r e l a t e d p a r t y 2020 2019
The Special Assistant to the Chairman
of the Company is a director of the
Company (Note 2) $ 391,026 $ 416,617
Affliated company (Note1) 93,355 -
Subsidairyof the joint venture New
Premium Enterprise Co., Ltd. 20,035 20,027
Subsidairy of the affliated company
-
Lucky Unique Enterprise Company 6,718
$ 511,134 $ 436,644
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The combined company has no comparable purchase price for related party products. The payment period of related party is approximately one month at the end of each month, which is not materially different from that of non-related party.

(4)Amounts due from related parties (excluding loans to related parties)

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December 31, December 31,
Item Type of related party/Name 2020 2019
Notes receivable Affliated company (Note1) $ 21,488 $ -
-
Subsidairy of the affliated company 3,357
Lucky Unique Enterprise Company
(Note 1)
-
24,845
Accounts Receivable Affliated company 86,011 -
The Special Assistant to the 52,354 155,295
Chairman of the Company is a
director of the Company (Note 2)
-
Subsidairy of the affliated company 7,923
Lucky Unique Enterprise Company
(Note1)
Affiliated companies (Note 1 ） 1,015 77
Subsidairy of the joint venture New - 3,880
Premium Enterprise Co., Ltd.
147,303 159,252
Other Receivables Affliated company /Perfect Step Ltd. 102,011 101,599
(Note 34)
-
Affliated company (Note1) 3,836
Subsidairy of the joint venture New - 316
Premium Enterprise Co., Ltd.
The Special Assistant to the
Chairman of the Company is a
director of the Company
Future Tycoon Holdings Co. Ltd. 980 155,544
Subsidairy of affliated company 34 -
Lucky Unique Enterprise Company
(Note 1)
106,861 257,459
$ 279,009 $ 416,711
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No guarantees have been received for related party receivables outstanding. No allowance for losses has been provided for related party receivables in 2020 and 2019.

(5)Amounts due to related parties (excluding loans from related parties)

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December 31, December 31,
Item Type of related party/Name 2020 2019
-
Notes Payable Affliated company /Lucky Unique $ 22,197 $
EnterpriseCompany
-
Subsidairy of the affliated 10,009
company Lucky Unique
EnterpriseCompany (Note1)
-
32,206
Accounts Payable The Special Assistant to the 60,961 129,925
Chairman of the Company is a
director of the Company./
Future Tycoon Enterprise
Co., Ltd.
-
Subsidairy of affliated company 29,156
Lucky Unique
EnterpriseCompany (Note 1)
-
Affliated company (Note 1) 8,479
-
Subsidairy of the joint venture 9,753
New Premium Enterprise Co.,
Ltd.
98,596 139,678
Other accounts Key management 3,511 78,642
payable
-
Affliated company (Note 1) 4,547
Subsidairy of the affliated 337 -
company Lucky Unique
Enterprise Company (Note 1)
The Special Assistant to the 305 305
Chairman of the Company is a
director of the Company.
(Note1)
The Chairman is a director of the - 43
Company
8,700 78,990
$ 139,502 $ 218,668
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The outstanding balance due to related party is unsecured and will be settled in cash. The amount due to Key management was for the acquisition of equity interest in Apex Textile Co., Ltd and Total Express Ltd.

(6)Acquisition of Property, Plant and Equipment

The Company purchased property, plant and equipment from Lucky Unique Enterprise Company in 2020 for NT$4,439,000.

(7)Disposal of Property, Plant and Equipment

Type of related party/Name The Chairman is a director of the Company (Note2) Future TycoonHoldings Co Ltd. Future TycoonEnterprise Co., Ltd. Afflicated company`（`Note 1`）`		Disposal	Proceeds 2019 $232,675 16,554 - $249,229		Disposal (loss) income	Disposal (loss) income
		2020 $ 60 - 2,160 $ 2,220			2020 $ 3 - 1,671 $ 1,674	2019
					$ $	( $ 314) 3,023 - $ 2,709

(8)Operating Lease- for rent

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Type of related party/Name Rent Objective Leasing Period
----- End of picture text -----

Type of related party/Name	Rent Objective	Leasing Period
Affliated company (Note1)/Lucky	Office	July 2020 to March 2023
Unique EnterpriseCompany
Subsidairy of the affliated company	Office	May 2020 to June 2021
Lucky Unique Enterprise Company.
(Note1)
The Chairman is the same person.	Office	April 2020 to Feb. 2021
The Chairman is the same person.	Plant Roof (Note 3)	Oct. 2017 to Oct. 2037
The Chairman is a director of the	Plant Roof (Note 3)	Oct. 2017 to Oct 2037
Company

Note3:The Company leased the roof of the plant to related party for solar power generation at a rent of 7% of the sales revenue of the solar power system.

The total lease payments to be received in the future are summarized as follows:

Type of related party/Name Affliated company (Note1)/Lucky Unique EnterpriseCompany Subsidairy of affliated company Lucky Unique EnterpriseCompany (Note1) The Chairman is the same person.		2020 $ 10,257 165 52 $ 10,474		2019
				$ - - - $ -

Summary of leasing revenue as below:

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Type of related party/Name 2020 2019
Affliated company (Note1)/Lucky
-
Unique EnterpriseCompany $ 2,864 $
Subsidairy of affliated company Lucky
Unique Enterprise Company(Note1) 480 -
The Chairman is the same person. 404 190
The Chairman is a director of the
Company 390 353
$ 4,138 $ 543
(9)Loans to related party
T y p e o f r e l a t e d p a r t y December 31 2020 December 31 2019
Other Receivables
-
Affliated company $ 8,009 $
T y p e o f r e l a t e d p a r t y 2020 2019
Interest income
The Special Assistant to the
Chairman of the Company is a
director of the Company. (Note2) $ - $ 215
Affliated company 35 -
$ 35 $ 215
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(9)Loans to related party

The combined company provides short-term loans to related parties as non-guaranteed loans with interest rates ranging from 1.5% to 2.5%.

(10)Borrowings from related party

Type of related party/Name Other accounts payable Key management YEH, Fu-lin Others The Vice Chairman is the Chairman of the Company	December 31 2020 $ 141,263 26,189 7,353 $ 174,805	December 31 2019	December 31 2019
			$ 130,796 38,678 - $ 169,474

Type of related party/Name Interest expense Key management YEH, Fu-lin (1) Others (2) The Chairman is a supervisor of the Company (2) The Chairman is the same person. (2) The Chairman is a director of the Company (3) Interest rate (1) Interest rate (2) Interest rate (3)		2020 $ 7,767 1,173 - - 79 $ 9,019 1.5%`～`4.5% 1.5% 1.4%`～`2.25%		2019
				$ 8,212 1,228 49 57 - $ 9,546 1.5%`～`4.5% 1.5% -

The combined company's borrowings from related parties bear interest rates comparable to market rates. All loans are unsecured loans.

(11)Other related party transactions
1.Processing Fees

The combined company pays the related party's entrusted processing fee, which is recorded as Operation cost according to its nature, none of similar products processing price can be compared, and the payment terms are monthly for 1 to 3 months.

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Type of related party 2020 2019
The Special Assistant to the Chairman of
the Company is a director of the
Company. (Note 2) $ 236,234 $ 156,145
Subsidairy of the affliated company
Lucky Unique Enterprise Company
-
(Note 1) 84,195
-
Affliated company (Note 1) 2,678
$ 323,107 $ 156,145
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2.Manufacturing and Operation expense

The Company's expenses for purchasing gifts from related parties and renting sample display rooms are as follows.

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Type of related party 2020 2019
The Chairman is a director of
the Company $ 348 $ 1,163
Affliated company Lucky
Unique EnterpriseCompany
之 Subsidairy (Note1) 1,108 -
Affliated company (Note1) 31 -
$ 1,487 $ 1,163
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3.Other income

The income from the sale of the Company's managed assets to related parties, income from counseling services and commissions were as follows:

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

Type of related party 2020 2019
The Special Assistant to the
Chairman of the Company is a
director of the Company. (Note2) $ 699 $ 5,983
-
Affliated company (Note1) 2,995
Subsidairy of the joint venture New
Premium Enterprise Co., Ltd. 2,348 4,151
$ 6,042 $ 10,134
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(12)Remuneration to Key Management Personnel

The combined company's total remuneration to directors and other key management personnel is as follows:

personnel is as follows:
Short-term employee benefits Post-employment beneifts		2020 $ 49,614 705 $ 50,319		2019
				$ 59,849 839 $ 60,688

The remuneration of directors and other key management personnel is determined by the Remuneration Committee based on the current year's operating results and the base of year-end bonuses paid in previous years.

38.Pledged assets

The following assets of The combined company have been provided as collateral for bank loans:

Land Buildings Machinery Right-of-use asset Investment fixed property Pledged bank deposits (recorded as financial assets carried at amortized cost - current) (Note)	December 31 2020 $ 266,446 275,536 65,816 267,437 65,071 2,803,808 $ 3,744,114	December 31 2019	December 31 2019
			$ 382,656 325,355 43,345 283,444 64,716 2,439,905 $ 3,539,421

Note ： The collaterals as fully guaranteed borrowings as of December 31, 2020 and 2019 were NT$2,687,940,000 and NT$2,239,794,000, respectively.

39.Significant Contingent Liabilities and Unrecognized Contractual Commitments

In addition to those described in other Notes, the combined company has the following significant commitments and contingencies on its balance sheet.

(1) As of 2020 and December 31, 2019, The combined company has opened unused letters of credit for raw materials purchases of $120,717,000 and $12,958,000, respectively.
(2) The combined company's unrecognized contractual commitments were as follows.

Purchase of property, plant and equipment	December 31 2020 $ 46,661	December 31 2019 $ 41,567

(3)As of 2020 and December 31, 2019, the Consolidated Company has provided guarantee notes of NT$348,000,000 and NT$417,515,000 for the purchase of raw materials and the provision of guarantees for borrowing lines from financial institutions, respectively.
40.Other matters

The Company was affected by the global pandemic of COVID-19, resulting in a significant decrease in 2020 operating income. In response to the impact of the epidemic, the Company has applied for salary and working capital subsidies from the government and has received 92,182,000 (Note 29).

41.Information on foreign currency assets and liabilities with significant impacts

The following information is presented in the aggregate in foreign currencies other than the functional currency of each of the consolidated companies. Assets and liabilities denominated in foreign currencies that have a significant effect are as follows:

Unit:Foreign currency and NT$1,000

December 31 2020

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

Foreign Currency Assets Foreign Currency Foreign Exchange Rate Carrying Amount
----- End of picture text -----


Curr	ency
USD		$	207,488	28.48	$	5,909,257
				(USD:NTD)
USD			3,261	6.5249		92,863
				(USD:CNY)
USD			16,067	23,100		457,589
				(USD:VND)
Non-currency items
Associates & Joint Ventures
Accounted for Using Equity
Method
	USD		9,030	28.48		257,177
				(USD:NTD)
	Hong Kong Dollars		108,672	7.7539		399,151
				(Hong Kong
				Dollars:USD)
Foreign Currency Liabilities
Currency
USD			57,932	28.48		1,649,875
				(USD:NTD)
USD			11,619	6.5249		330,920
				(USD:CNY)
USD			57,760	23,100		1,645,013
				(USD:VND)

December 31 2019

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

Foreign Currency Assets Currency Amount Foreign Exchange Rate Carrying amount
----- End of picture text -----


Curr	ency
USD		$	221,729	29.98	$	6,647,452
				(USD:NTD)
USD			12,615	6.9762		378,184
				(USD:CNY)
USD			10,918	23,178		327,309
				(USD:VND)
Non-currency items
Associates & Joint Ventures
Accounted for Using Equity
Method
	USD		10,756	29.98		322,467
				(USD:NTD)
	Hong Kong Dollars		94,589	7.789		364,072
				(Hong Kong Dollars:USD)
Foreign Currency Liability
Currency
USD			94,509	29.98		2,833,396
				(USD:NTD)
USD			13,310	6.9762		399,029
				(USD:CNY)
USD			69,527	23,178		2,084,408
				(USD:VND)

The combined company is primarily exposed to foreign currency exchange rate risk for the U.S. dollar, CNY and Vietnamese Dong. The following information is presented as a summary of the functional currencies of the individual foreign currency holdings, and the exchange rates disclosed represent the rates at which those functional currencies were translated into the presentation currency. Foreign currency exchange gains and losses (realized and unrealized) with significant effect are as follows.:

Functional Currency NTD USD CNY VND	2020	Net FX (loss) income ( $ 226,572 ) 61 ( 389 ) 6,959 ( $ 219,941 )	2019
	Functional Currency to Presentation Currency 1 (NTD:NTD) 29.549 (USD:NTD) 4.2827 (CNY:NTD) 0.001271 (VND:NTD)		Functional Currency to Presentation Currency 1 (NTD:NTD) 30.912 (USD:NTD) 4.4821 (CNY:NTD) 0.001331 (VND:NTD)	Net FX (loss) income
		( ( (		( ( (	$ 96,542 ) 107 ) 15,407 19,598 $ 61,644)

42. Note Disclosure

(1) Information on significant transactions.
- 1.Loan of funds to others: Schedule 1 (attached)
- 2.Endorsement and guarantee for others: Schedule 2 (attached)
- 3.MarkeSchedule securities held at the end of the period (excluding investments in subsidiaries and affiliated companies): Schedule 3 (attached)
- 4.Cumulative purchase or sale of markeSchedule securities amounting to at least NT$300 million or 20% of the paid-in capital: Schedule 4 (attached).
- 5.Acquisition of real estate amounting to at least NT$300 million or 20% of the paid-in capital:None.
- 6.Disposal of real estate amounting to at least NT$300 million or 20% of the paid-in capital: None.
- 7.Purchase from or sale to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Schedule 5 (attached).
- 8.Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Schedule 6 (attached).
- Derivative transactions: Please refer to Note 7.
- 10.Others: Business relationships and significant transactions between the parent and subsidiaries and between subsidiaries: Schedule 10 (attached).
(2) Information on investment: Schedule 7 (attached).
(3) Information on investment in China.
1. Name of the investee company in China, main business items, paid-in capital, investment method, capital remittance, shareholding ratio, investment gain or loss, carrying amount of the investment at the end of the period, repatriated investment gain or loss, and investment limit in China: Schedule 8 (attached).
2. 2, Significant transactions with the investee company in China, directly or indirectly through a third country, and the prices, terms of payment, and unrealized gains or losses.
3. 1) Amounts and percentages of purchases and related accounts payable: Schedule 9 (attached).
4. 2) Amount and percentage of sales and related receivables: Schedule 8 (attached).
5. 3) Amount of property transactions and the amount of gain or loss arising from them: None.
6. 4) Ending balance and purpose of guarantees or collaterals provided: Schedule 2 (attached).
  - 5) Maximum balance, ending balance, interest rate range, and total current interest on financial instruments: Schedule 1 (attached).
7. 6) Other transactions that have a significant effect on current income or financial

position, such as the provision or receipt of labor services: None.

(4)Information on major shareholders: Name, amount and percentage of shares held by shareholders with at least 5% ownership: Schedule 11 (attached).

43. SEGMENT INFORMATION

(1)Segment Revenue and Operating Results

The consolidated companies are all in the textile industry. The financial information provided to the chief operating decision maker for the purpose of allocating resources and evaluating the performance of the divisions focuses on the Company and its subsidiaries, and is presented below by reportable segment.

2020 Revenue from customers other than the Company and its consolidated subsidiaries Income from the Company and consolidated subsidiaries Total income Segment income (loss) Interest income Other income Finance costs Share of losses of affiliated companies and joint ventures recognized under the equity method Other gains and losses Net segment loss before tax 2019 Revenue from customers other than the Company and its consolidated subsidiaries Income from the Company and consolidated subsidiaries Total income Segment benefits Interest income Other income Finance costs Share of losses of affiliated companies and joint ventures recognized under the equity method Other gains and losses Net segment income before tax	T h e C o m p a n y	T h e C o m p a n y	H a n g z h o u De Licacy G r o u p ( N o t e 1 )	H a n g z h o u De Licacy G r o u p ( N o t e 1 )	Vietnam De L i c a c y G r o u p ( N o t e 2 )	Vietnam De L i c a c y G r o u p ( N o t e 2 )		Other	Adjustments and eliminations	Adjustments and eliminations
	(	$2,769,524 236,116 $3,005,640 $ 236,705) $3,843,550 425,833 $4,269,383 $ 138,247		$1,918,680 30,370 $1,949,050 $ 108,188 $2,709,234 62,595 $2,771,829 $ 243,492		$2,123,927 436,557 $2,560,484 $ 129,261 $1,905,208 557,269 $2,462,477 $ 264,848	(	$1,782,528 1,575,693 $3,358,221 $ 3,781) $2,461,732 1,689,127 $4,150,859 $ 124,419	( ( ( (	$ - 2,278,736) $2,278,736) $ 6,192 $ - 2,734,824) $2,734,824) $ 30,755

Note1: Hangzhou De Licacy Group include Best Alliance International Limited , Eden Road International Ltd., Eden Road International Ltd.(H.K.), Hangzhou De Licacy Textile Co., Ltd. , De Fa Company, Hao Wang Company, Chang Xin Lucky Unique Enterprise Company, Thousand Well International Limted, Thousand Well (Samoa) International Limted, Fastpower Limited, and Fastpower (Samoa) Limited

Note2: Vietnam De Licacy Group include De Licacy Holdings company, De Shen (Cayman) Holdings Co., Ltd., Vietnam De LicacyCompany , and New Lake Ltd.

Segment profit or loss represents the profit earned by each segment, excluding non-operating income and expense and income tax expense. This measure is provided to the chief operating decision maker for the purpose of allocating resources to the segments and evaluating their performance.

The combined company's chief operating decision maker makes decisions based on the operating results of each segment and does not have information on segment assets and liabilities to evaluate the performance of different business activities, therefore, only the operating results of reporSchedule segments are presented.

(2)Location information

－ The combined company operates mainly in three regions Taiwan, China and Vietnam.

The information on continuing business unit income from external customers of The combined company by operation and non-current assets locations are as below:

Taiwan China Vietnam	Income from external customers 2020 2019 $ 3,114,738 $ 4,500,362 3,355,370 4,490,435 2,124,551 1,928,927 $ 8,594,659 $10,919,724	Income from external customers 2020 2019 $ 3,114,738 $ 4,500,362 3,355,370 4,490,435 2,124,551 1,928,927 $ 8,594,659 $10,919,724	Income from external customers 2020 2019 $ 3,114,738 $ 4,500,362 3,355,370 4,490,435 2,124,551 1,928,927 $ 8,594,659 $10,919,724	Non-current assets	Non-current assets	Non-current assets
		2020 $ 3,114,738 3,355,370 2,124,551 $ 8,594,659		2020 December 31 $ 756,201 2,302,791 3,370,956 $ 6,429,948	2019 December 31
						$ 982,316 2,290,991 3,714,679 $ 6,987,986

Non-current assets exclude classified as financial assets, Refundable Deposits, investments accounted for using equity method, net defined benefit assetand deferred income tax assets.

(3)Major customers’ information

The combined company has no sales income from major customers which accounts for more than 10% of the net sales income in the consolidated Income Statement.

De Licacy Industrial Co., Ltd. and Subdidiary Funds loaned to others.

For the year end 31 December of 2020

Schedule 1

(In thousands of New Taiwan Dollars)

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No. Loan Funded Companies Loan recipients Current Accounts Is a related balance for the Highest Closing Actual Interest rate Natures of funding and transactions(NoBusiness Reasons of short-term Allowance for Collateral individual funds The limit for Capital Loan and Total
party balance expenditures loan financing funds bad debts
period collars( ％ ) te 4) N a m e Va l u e lending(Note 1) Limit(Note 2)
0 The Company Best Alliance International Other Receivables Y $ 166,842 $ 74,048 $ 74,048 1.8 Short-term financing $ - Operating revolving $ - none $ -
Limited fund $ 1,411,295 $ 1,881,727
The Company Der Sheng Cayman Company Other Receivables Y 78,570 76,896 - - Short-term financing - Operating revolving - none -
1,411,295 1,881,727
fund
The Company Total Express Ltd. Other Receivables Y 133,335 128,160 128,160 1.8 Short-term financing - Operating revolving - none -
1,411,295 1,881,727
fund
The Company Vietnam De LicacyCompany Other Receivables Y 355,560 341,760 341,760 2.8 Short-term financing - Operating revolving - none -
1,411,295 1,881,727
fund
1 De LicacySamoa Company Vietnam De LicacyCompany Other Receivables Y 120,900 113,920 113,920 2.8 Short-term financing - Operating revolving - none -
1,049,182 1,398,909
fund
De LicacySamoa Company Apex Textile Co., Ltd Other Receivables Y 76,896 76,896 76,896 1.8 Short-term financing - Operating revolving - none - 1,049,182 1,398,909
fund
2 De Fa Company Hangzhou De Licacy Company Other Receivables Y 17,076 - - - Short-term financing - Operating revolving - none - 14,900 19,866
fund
De Fa Company Hangzhou De Licacy Company Other Receivables Y 86,100 - - - Business transactions 68,317 - none - 83,217 88,183
3 Eden Road Compan Best Alliance International Temporary Y 111,833 - - - Short-term financing - Operating revolving - none - 8,391 8,391
Limited payments fund (Note3) (Note3)
4 Total Express Ltd. Apex Textile Co., Ltd Accounts Y 180,141 - - 1.8 ～ 2.34 Business transactions 857,530 - none - 876,315 882,576
Receivable
5 Der Sheng Cayman Company Vietnam De LicacyCompany Other Receivables Y 509,660 - - 2.5 Short-term financing - Operating revolving - none - 906,236 1,208,315
fund
6 New Lake Ltd. Vietnam De LicacyCompany Other Receivables Y 60,450 - - 2.5 Short-term financing - Operating revolving - none - 296,860 296,860
fund (Note3) (Note3)
7 De HongCompany De Hong (Vietnam) Company Other Receivables Y 22,669 13,955 6,550 2.5 Short-term financing - Operating revolving - none - 20,276 27,034
fund
8 Hangzhou De Licacy Company Apex Textile Co., Ltd Temporary Y 234,795 109,425 109,120 5.1 Short-term financing - Operating revolving - none - 534,738 712,985
payments (Note5) fund
Hangzhou e Licacy Company Apex Textile Co., Ltd Temporary Y 153,195 153,195 109,120 4.15 Short-term financing - Operating revolving - none - 534,738 712,985
payments (Note5) fund
9 Apex Textile Co., Ltd Apex (Anqing) Textile Co., Ltd Accounts Y 87,540 87,540 61,544 5.1 Short-term financing - Operating revolving - none - 109,109 145,478
Receivable (Note 5) fund
10 Lucky Apex Ventures Limited Apex (Anqing) Textile Co., Ltd Other Receivables Y 123,821 121,182 121,154 1.0 Short-term financing - Operating revolving - none - 128,811 171,748
fund
11 View Best Global Company Vietnam ATAGO Company Other Receivables Y 8,148 7,974 7,974 2.5 Short-term financing - Operating revolving - none - 12,316 16,421
fund
12 Best Alliance International Hangzhou De Licacy Company Temporary Y 68,352 68,352 68,352 - Short-term financing - Operating revolving - none - 702,472 936,629
Limited payments fund
Best Alliance International Eden Road International Temporary Y 69,840 68,352 68,352 - Short-term financing - Operating revolving - none - 702,472 936,629
Limited Ltd.(H.K.) payments fund
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Note 1: Based on 30% of the net shareholders' equity of each lending company and the amount of business transactions in the previous year.

Note 2: Based on 40% of the net shareholders' equity of each lending company and the amount of business transactions in the previous year.

Note 3: Based on 100% of each lending company's net shareholders' equity and the amount of business transactions in the previous year. Note 4: Based on the amount of business transactions in the previous year.

Note 5: The difference between the announcement and the announcement is the adjustment of foreign currency exchange gain or loss at the end of the period.

De Licacy Industrial Co., Ltd. and Subsidairies

Endorsement for others

FOR THE YEAR ENDED DECEMBER 31, 2020

Schedule 2

(In thousands of New Taiwan Dollars)

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Ratio of cumulative
Parent
Endorsement/Guar Endorsed/Guarantees Amount of endorsement Subsidairy's
company's Endorsement
antor Limit of endorsement Highest endorsement guarantee to net of the Highest endorsement endorsement
Ending endorsement endorsement guarantee to
No. guarantee for a single Endorsement Actual expenditure guarantee by assets most recent financial guarantee (Note 2) of the parent
Name of Limit of endorsement guarantee guarantee balance to Subsidairy China
Name of Company enterprise (Note 1) Balance guarantee statements (%) company
Company for a single enterprise (Note 1) guarantee
0 The Company New Lake Ltd. Subsidairy (Indirect $ 2,352,159 $ 1,033,050 $ 1,011,040 $ 387,328 $ - 21.49 $ 7,056,476 Y N N
shareholdings100%)
The Company De Fa Company Subsidairy (Direct 2,352,159 230,636 229,396 132,800 - 4.88 7,056,476 Y N N
shareholdings100%)
The Company Chadtex Company Subsidairy (Direct 2,352,159 105,000 80,000 - - 1.70 7,056,476 Y N N
shareholdings55.06%)
The Company Eden Road Compan Subsidairy (Indirect 2,352,159 498,712 412,960 110,218 - 8.78 7,056,476 Y N N
shareholdings100%)
The Company Vietnam De LicacyCompany Subsidairy (Indirect 2,352,159 938,345 902,120 392,329 - 19.18 7,056,476 Y N N
shareholdings 100%)
The Company De Shen (Cayman) Holdings Subsidairy (Indirect 2,352,159 1,118,325 911,360 361,696 - 19.37 7,056,476 Y N N
Co., Ltd. shareholdings100%)
The Company Apex Textile Co., Ltd Subsidairy (Indirect 2,352,159 207,383 207,383 137,508 - 4.41 7,056,476 Y N Y
shareholdings 53.22%)
The Company Hangzhou De Licacy Subsidairy (Indirect 2,352,159 575,510 320,750 33,480 - 6.82 7,056,476 Y N Y
Company shareholdings 100%)
The Company De Kao Company Subsidairy of the affliate 2,352,159 10,000 - - - - 7,056,476 N N N
company Lucky Unique
Enterprise Company
(Subsidairy of the Company
by July 8, 2020) (Indirect
shareholdings 14.99%)
The Company Apex (Anqing) Textile Co., Ltd Subsidairy (Indirect 2,352,159 43,050 43,770 30,639 - 0.93 7,056,476 Y N Y
shareholdings53.22%)
The Company Total Express Ltd. Subsidairy (Indirect 2,352,159 216,565 - - - - 7,056,476 Y N N
shareholdings53.22%)
The Company Eden Road International Subsidairy (Indirect 2,352,159 174,600 170,880 - - 2.42 7,056,476 Y N N
Ltd.(H.K.) shareholdings100%)
1 Apex Textile Co., Hazhou De Licacy Company Affiliate Company (Parent 181,848 129,150 - - - - 363,695 N N Y
Ltd company Indirect (Note3)
shareholdings100%)
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Note 1: Based on 50% of the total equity of the owners of each endorsing company.

Note 2: Based on 150% of the total interests of the owners of each endorsing company.

Note 3: Based on 100% of the total interests of the owners of each endorsing and guaranteeing company.

De Licacy Industrial Co., Ltd. and Subsidairies

Year-end Marketable Securities Breakdown Statement

December 31, 2020

Schedule 3

(In thousands of New Taiwan Dollars)

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Relationship with the December 31, 2020
Holding company Types and Name of MarkeSchedule Scurities Holding Company Line Item Unit/Share Carrying Percentage( Fair Value Note
amount ％ )
Stocks
The Company CHIA HER INDUSTRIAL CO., LTD. － public none Financial liabilities at fair value through other 2,266,091 56,222 2.764 56,222
－
company comprehensive profit and loss non-current
De Fa Company Hua Nan Financial Holdings Co., Ltd. － public none Financial assets at fair value through profit or loss － 156,488 2,856 0.001 2,856
company current
Chadtex Company Far Eastern International Bank － public none Financial liabilities at fair value through other 3,592,500 38,979 0.104 38,979
－
company comprehensive profit and loss current
Chadtex Company CHIA HER INDUSTRIAL CO., LTD. － public none Financial liabilities at fair value through other 2,572,937 63,834 3.138 63,834
－
company comprehensive profit and loss non-current
Funds beneficiary certificates
The Company Hua Nan － Saudi Arabian National Oil Fund none Financial assets at fair value through profit or loss － 285,000 9,387 - 9,387
current
corporate bond
Chadtex Company CHIA HER INDUSTRIAL CO., LTD. － public none Financial assets at amortised cost － non-current 300 27,725 10.000 30,576
company
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Note 1: The markeSchedule securities mentioned in this Schedule refer to stocks, bonds, beneficiary certificates and markeSchedule securities derived from the above items within the scope of IFRS 9 "Financial Instruments". Note 2: For information on investment in Subsidairy, please refer to Schedule 7 and Schedule 8.

De Licacy Industrial Co., Ltd. and Subsidairies

Accumulated purchase or sale of the same markeSchedule securities amounting to at least NT$300 million or 20% of the paid-in capital.

FOR THE YEAR ENDED DECEMBER 31, 2020

Schedule 4

(In thousands of New Taiwan Dollars)

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Type and name of Beginning Buy Sell Ending
Trading
Seller/Buyer markeSchedule Line Item Relationship Disposal(loss)
Partners share/unit Amount share/unit Amount share/unit Amount Book cost share/unit Amount
securities income
The Company De LicacySamoa Investments － 100% transfer of 41,545,109 $ 2,996,495 11,059,273 $396,716 - $ - $ - $ - 52,604,382 $ 3,393,211
Company accounted for investment to (Note)
using equity subsidiaries
method
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Note: Including NT$320,241,000 of new investment, (NT$188,000) of interest in subsidiaries using the equity method, NT$70,416,000 of translation differences on financial statements of foreign operating institutions, NT$837,000 of remeasurement of defined benefit plans of subsidiaries using the equity method and NT$5,410,000 of capital surplus - long-term investment.

100

De Licacy Industrial Co., Ltd. and Subsidairies

Purchase or sale transactions with related parties amounting to at least NT$100 million or 20% of the paid-in capital

FOR THE YEAR ENDED DECEMBER 31, 2020

Schedule 5

(In thousands of New Taiwan Dollars)

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Circumstances and reasons of transaction conditions are
Transactions Notes and accounts receivable (payable)
different from general transactions
Buying/selling company Trading Partners Relationship Percentage of total Percentage of total Note
Buy/Sell Amount purchase (sales) Credit Period Unit Price (Note Credit Balance receivable
(%) 1) Period (payable)( ％ )
The Company Chadtex Company Subsidairy Purchase $ 121,353 7 Open Account 30 days unapplicable General open account 30-90 days ( $ 2,895 ) 1
The Company Tung Ming Company Note 2 127,247 7 Open Account 30 至 90 〞 General open account 30-90 days - -
Purchase
days
The Company New Lake Ltd. Subsidairy ( 123,106 ) 4 Open Account 30 至 60 〞 General open account 30-90 days 13,947 3
(Sales)
days
The Company New Lake Ltd. Subsidairy 451,073 25 Open Account 30 至 90 〞 General open account 30-90 days ( 43,685 ) 16
Purchase
days
〞
Eden Road International Ltd. Thousand Well International Affiliate Company 178,950 86 Open Account 90 days No general suppliers available for - -
Purchase
Limted comparison
〞
Eden Road Thousand Well International Affiliate Company 153,651 52 Open Account 90 days No general suppliers available for - -
Purchase
International Ltd.(H.K.) Limted comparison
Eden Road Thousand Well (Samoa) Affiliate Company 105,665 35 Open Account 90 days 〞 No general suppliers available for ( 67,647 ) 73
International Ltd.(H.K.) International Limted Purchase comparison
〞
Hangzhou De Licacy Thousand Well International Affiliate Company ( 332,601 ) 19 Open Account 90 days General open account 30-90 days - -
(Sales)
Company Limted
Hangzhou De Licacy Thousand Well (Samoa) Affiliate Company ( 105,665 ) 6 Open Account 90 days 〞 General open account 30-90 days 5,935 1
(Sales)
Company International Limted
Apex Textile Co., Ltd Total Express Ltd. Affiliate Company (Sales) ( 915,988 ) 65 Open Account 90 days 〞 General open account 30-90 days 45,499 16
Apex Textile Co., Ltd Apex (Anqing) Textile Co., Ltd Affiliate Company (Sales) ( 100,262 ) 7 Open Account 90 days 〞 General open account 30-90 days 86,811 31
Apex Textile Co., Ltd Apex (Anqing) Textile Co., Ltd Affiliate Company Purchase 192,039 18 Open Account 90 days 〞 General open account 30-120 days ( 33,223 ) 14
New Lake Ltd. Vietnam De Licacy Company Affiliate Company (Sales) ( 627,275 ) 30 Open Account 90 days 〞 General open account 30-60 days 520,823 67
New Lake Ltd. Vietnam De Licacy Company Affiliate Company Purchase 905,378 47 Open Account 120 days 〞 General open account 30 days ( 285,483 ) 78
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Note 1: The purchase price is not comparable to the general purchase price of similar products; the sales price is comparable to the general customer. Note 2: Prior to July 8, 2020, the company was a subsidiary of the Company.

101

De Licacy Industrial Co., Ltd. and Subsidairies

Receivables from related parties amounting to NTD100 million or 20% of paid-in capital or more.

December 31, 2020

Schedule 6

(In thousands of New Taiwan Dollars)

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Overdue amounts due from related parties Amounts due from related
Allowance
Accounts receivable companies Balance of receivables parties recovered in the
Name of trading Partners Relationship with the dealer Turnover( ％ ) Amount Methodology for losses
from related parties period
The Company Vietnam De LicacyCompany Subsidairy $ 348,276 (Note1) $ - － $ 2,156 $ -
The Company Total Express Ltd. Subsidairy 129,089 (Note2) - － - -
Lucky Apex Ventures Limited Apex (Anqing) TextileCo.,Ltd Subsidairy 121,154 (Note2) - － - -
De Shen (Cayman) Holdings Co., Vietnam De LicacyCompany Subsidairy 226,105 (Note3) - － - -
Ltd.
New Lake Ltd. Vietnam De LicacyCompany Affiliate Company 546,860 1.00 - － 136,847 -
(Note4)
Vietnam De LicacyCompany New Lake Ltd. Affiliate Company 285,483 3.08 - － 52,034 -
Hangzhou De Licacy Company Apex Textile Co., Ltd Affiliate Company 424,518 0.33 - － - -
(Note5)
De LicacySamoa Company Vietnam De LicacyCompany Affiliate Company 116,440 (Note2) - － 58,240 -
Apex Textile Co., Ltd Apex (Anqing) TextileCo.,Ltd Affiliate Company 163,583 2.08 - － 54,542 -
(Note6)
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Note 1: NT$348,171,000 were receivables from loans and interest on funds, and the rest were receivables from endorsement and guarantee fees, which were not included in the calculation of the turnover rate. Note 2: All of them are receivables arising from capital loans and interest, which are not included in the calculation of the turnover rate. Note 3: Receivables arising from the sale of fixed assets are not included in the calculation of the turnover rate. Note 4: NT$26,037,000 was the amount from the sale of property, plant and equipment and advances, which was not included in the calculation of the turnover rate. Note 5: NT$218,240,000 was due from the loan of funds and NT$201,921,000 was due from the sale of investment fixed assets and advances from leased plants, which were not included in the calculation of turnover rate. Note 6: NT$61,544,000 was a receivable arising from capital loans and NT$15,228,000 was a receivable arising from the sale of property, plant and equipment, which was not included in the turnover calculation.

102

De Licacy Industrial Co., Ltd.and Subsidiaries Information of the investee companies, locations, etc. FOR THE YEAR ENDED DECEMBER 31, 2020

Schedule 7

(In thousands of New Taiwan Dollars) (except in USD)

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Original Investment Held at period-end Investee company Recognized Investment
Investment Company Name Investee Company Name Location Major Business Scope End of current period End of last year Shares Percentage( ％ ) Book value amount (Loss) income (loss) income(Note 1) Note
The Company De LicacySamoa Company Samoa General Investment $ 1,622,785 $ 1,302,544 52,604,382 100 $ 3,393,211 ( $ 1,033 ) ( $ 188 ) Unrecognized gain on disposal of
investment property and
unrealized gain on disposal of
property, plant and equipment
The Company Tung Ming Company Taiwan Manufacture, processing and - 100,193 - - - 20,095 7,020
trading of chemical fibers
The Company Lucky Unique EnterpriseCompany Taiwan Manufacture and processing of 102,588 243,524 9,936,207 24.98 111,412 15,285 7,549 Affiliated companies, subsidiaries
various fiber textile products of the Company prior to July 8,
2020)/unrealized gain or loss on
sales difference.
The Company De Fa Company Taiwan General Import and Export 59,878 59,878 5,500,000 100 49,709 ( 15,763 ) ( 15,753 ) Recognized difference of
Trade inter-group lease gains or losses.
The Company Chadtex Company Taiwan Textile manufacturing, dyeing 177,335 156,006 18,931,098 55.06 239,702 6,424 3,893 Recognized difference of realized
and finishing, and trading of and unrealized gain or loss on
various textile products sales and disposal of property,
plant and equipment.
The Company De LicacyBVI Holding Company British Virgin Islands General Investment USD 108,040,000 USD 108,040,000 27,010 100 3,012,615 104,327 107,012 Recognized difference of realized
gain on disposal of fixed assets.
The Company View Best Global Company Samoa General Investment USD 2,475,000 USD 1,935,000 2,475,000 100 41,053 ( 14,797 ) ( 14,796 )
The Company De Kao Company Taiwan General Import and Export - 12,000 - - - ( 14,799 ) ( 850 )
Trade
Tung Ming Company Lucky Unique EnterpriseCompany Taiwan Manufacture and processing of - 4,856 - - - 15,285
various fiber textile products
Tung Ming Company Bright Wisdom Ltd. Samoa General Investment - 35,400 - - - 9,523
De LicacySamoa Company Best Alliance International Limited British Virgin Islands General Investment 1,397,855 1,256,409 37,900,000 100 2,377,922 95,803
De LicacySamoa Company Bao Li Company Samoa General Investment USD 6,501,742 USD 6,342,469 6,501,742 73.33 154,512 ( 10,153 )
De LicacySamoa Company Hao Wang Company Samoa General Investment - USD 2,500,000 - - - ( 13,062 )
De LicacySamoa Company De LicacyAnguilla Company Anguilla General Investment USD 5,005,000 USD 5,005,000 5,005,000 100 46,474 ( 46,468 )
De LicacySamoa Company De Hong Company Samoa General Investment USD 1,500,000 USD 1,500,000 1,500,000 50 33,793 ( 9,606 )
De LicacySamoa Company New Lake Ltd. Anguilla General Import and Export USD 6,100,000 USD 100,000 6,100,000 100 296,860 1,452
Trade
De LicacySamoa Company Mei Chia Venture Capital Company British Virgin Islands General Investment USD 11,920,238 USD 11,920,238 11,920,238 85 338,315 ( 14,638 )
De Hong Company De Hong(Vietnam) Company Vietnam Printing and finishing of USD 2,500,000 USD 2,500,000 - 100 61,043 ( 3,026 )
various types of garments and
cloths
Best Alliance Limited Eden Road Compan British Virgin Islands General Import and Export 1,700 1,700 50,000 100 411 6,438
Trade
Best Alliance Limited Bright Wisdom Ltd. Samoa General Investment USD 14,902,500 USD 9,582,533 14,902,500 53.22 474,038 9,523
Best Alliance Limited Hong Kong Eden Road Compan Hong Kong General Import and Export USD 50,000 - 50,000 100 70,029 68,457
Trade
Eden Road Compan Bright Wisdom Ltd. Samoa General Investment - USD 4,228,300 - - - 9,523
Lucky Unique EnterpriseCompany De Sin Company Samoa General Investment USD 6,190,000 USD 5,630,000 6,190,000 100 218,141 21,708 Note3
Lucky Unique EnterpriseCompany Jie Sen Company Taiwan Manufacture, processing and 5,000 5,000 500,000 80 5,623 ( 3,375 ) Note3
trading of various fiber textile
products
Lucky Unique EnterpriseCompany De Kao Company Taiwan General Import and Export 12,000 - 1,200,000 60 417 ( 14,799 ) Note3
Trade
Lucky Unique EnterpriseCompany Tung Ming Company Taiwan Manufacture and processing of 258,989 - 15,279,600 91.28 190,124 20,095 Note3
chemical fibers and
international trading business
Bright Wisdom Ltd. Total Express Ltd. Seychelles Manufacture and processing of USD 1 USD 1 1 100 62,615 30,565
chemical fibers and
international trade
Bright Wisdom Ltd. Lucky Apex Ventures Ltd. Samoa General Investment USD 14,655,000 USD 10,400,000 14,655,000 100 429,371 ( 4,360 )
Bright Wisdom Ltd. Jon Da Company Taiwan General Import and Export 10,000 - 1,000,000 100 11,369 1,369
Trade
De Licacy Holding Company Der Sheng Cayman Company Cayman Islands General Investment USD 108,032,701 USD 108,032,701 108,032,700,860 100 3,020,787 104,372
De Shen (Cayman) Holdings Vietnam De LicacyCompany Vietnam Printing, dyeing, finishing, USD 114,660,489.5 USD 114,660,489.5 - 100 3,149,085 91,331
garment manufacturing and
Co., Ltd.
trading of various textile and
yarn materials
Vantage Gain Limited Perfect Step Ltd. British Virgin Islands General Investment USD 8,862,037 USD 8,644,837 8,862,037 20 210,718 ( 50,482 )
De LicacyAnguilla Company Era Nouveau International Co., Ltd. Samoa General Investment USD 5,000,000 USD 5,000,000 5,000,000 50 46,459 ( 53,282 )
View Best Global Company Vietnam ATAGO Company Vietnam Garment manufacturing and USD 1,915,070 USD 1,915,070 - 30 25,314 ( 48,437 )
trading
Beauty Plus Limited Sung Yu Company British Virgin Islands General Investment USD 14,023,848 USD 14,023,848 38 38 399,151 ( 38,283 )
----- End of picture text -----

Note 1: Only the amount of profit or loss recognized for each subsidiary directly invested by the Company and each investee company using the equity method should be shown. Note 2: Please refer to Schedule 8 (attached) for the information about China investee companies.

Note 3: Subsidiary of Lucky Unique Enterprise Company (a subsidiary of the Company before July 8, 2020).

103

De Licacy Industrial Co., Ltd.and Subsidiaries

Investment Information on investment in China

For the year ended December 31, 2020.

Schedule 8

In thousand in NTD (except in US dollars)

==> picture [1067 x 393] intentionally omitted <==

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

Accumulated investment Accumulated investment The investee Year-end Remitted
Investment amount remitted or recovered The Company's Recognized
China reinvestment Paid-in Capital. Investment Method amount remitted from amount remitted from companies for the Investment Investment
Major Business Scope during the period direct or indirect Investment (loss)
Company Names (Note 3) (Note 7) Taiwan at initial period Taiwan at the end of the period income Carrying Amoount income for the
investment (%) (Note 1)
(Note 3) period (Note 3) (Loss) (Note 1) year end
Remitted Recovery
Hangzhou Der Li Company Production and sales of long $ 1,196,160 3.Der Yi Company $ 1,301,643 $ - $ - $ 1,301,643 $ 25,885 100 $ 27,000 $ 1,730,774 $ -
and short fiber fabric (USD 42,000,000) (Note 4) (Note 4) (Note 6)
processing and finishing (USD 18,289,091 (USD 18,289,091
And $ 780,770) And $ 780,770)
Apex Textile Co., Ltd Manufacture and sale of 370,240 3.Bright Wisdom 120,840 - - 120,840 ( 18,042 ) 53.22 ( 10,951 ) 193,570 -
textile products and dyeing (USD 13,000,000) Ltd. (USD 3,000,000 (USD 3,000,000
and finishing And $ 35,400) And $ 35,400)
Chang Sin Lucky Unique Manufacture, dyeing and - 3.Hao Wan 71,200 - 71,200 - ( 244 ) - ( 244 ) - -
EnterpriseCompany (Note sales of various high-quality Company (USD 2,500,000) (USD 2,500,000)
5) fabrics and textiles
Apex (Shanghai) Textile General Investment 1,573,520 3.Sin Hao 58,384 - - 58,384 - 14.67 - 38,339 -
co., Ltd (USD 55,250,000) Company 、 Samoa (USD 2,050,000) (USD 2,050,000)
Sin Young
International
Limited
Apex (Anqing) Textile Co., Ltd Manufacture and sale of 296,192 3.Lucky Apex 296,192 - - 296,192 ( 4,361 ) 53.22 ( 1,692 ) 164,027 -
various high-quality fabrics (USD 10,400,000) Ventures Ltd. (USD 10,400,000) (USD 10,400,000)
and textiles
Accumulated remittance of Investmen Commission, MOEA
investments from Taiwan to China at approved investment amount
Company Names Investment quota in China according to the Investment Commission, MOEA
the end of the period (Note 3)
(Note 3
Hangzhou De Licacy Textile Co., Ltd. $ 1,301,643 $ 1,301,643
(Note 2)
(USD 18,289,091 and $ 780,770) (USD 18,289,091and $ 780,770)
Apex Textile Co., Ltd $ 120,840 $ 120,840
(Note 2)
(USD 3,000,000 and $ 35,400) (USD 3,000,000and$ 35,400)
Apex (Shanghai) Textile co., Ltd $ 58,384 $ 357,424
(Note 2)
(USD 2,050,000) (USD 12,550,000)
Apex (Anqing) Textile Co., Ltd $ 296,192 $ 455,680
(Note 2)
(USD 10,400,000) (USD 16,000,000)
----- End of picture text -----

Note 1: Recognized based on the financial statements of the investee company audited by the parent company's certified public accountants in Taiwan during the same period.

Note 2: In accordance with the newly revised "Regulations Governing the Examination of Investment or Technical Cooperation in Mainland China" dated August 29, 2018, the Company obtained the certification document issued by the Industrial Development Bureau, Ministry of Economic Affairs on August 28, 2017, which conforms to the scope of operation of the Ministry of Manufacturing Operations, so the calculation of investment limit is not required.

Note 3: The related amount was translated at the Foreign Exchange Rate of NT$28.48 per USD at the end of the period.

Note 4: Including the recognition of Best Alliance International Limited investment of NT$111,616 (US$3,919,091) in Hangzhou Deli by way of debt in proportion to its shareholding.

Note 5: Changxin Lucky Unique Enterprise Company was liquidated on October 31, 2009 and remitted USD 2,706,075.53 (including capital stock of USD 2,500,000 and investment income of 206,075.53) to Hao Wan on November 30, 2020 The Company then remitted to De Licacy Samoa Company.

Note 6: The difference is the unrealized gain or loss on disposal of fixed assets and investment fixed assets.

Note 7: (1) Investment in Mainland China through third-party remittance.

(2) Investment in China through a third-party company.

(3) Reinvestment in Mainland China through re-investment in an existing company in a third region.

104

Stock Number ： 1464

De Licacy Industrial Co., Ltd.and Subsidiaries Significant transactions with China investees directly or indirectly through third regions, the prices, payment terms, and unrealized gains or losses For year ended 31 December 2020

Schedule 9

(In thousands of New Taiwan Dollars)

==> picture [1066 x 441] intentionally omitted <==

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

Notes, Accounts Receivable
The relationship Trading Terms
(Payable)
Company Transaction Partner with transaction Transaction Type Amount
Comparison with Percentage( Unrealized
partner Price Payment Terms Balance
general transactions ％ ) Income (loss)
Der Fa Company Hangzhou De Licacy affiliated company Sales $ 60,260 Trade at general price Open Account 120 No general customers $ 8,982 58 $ -
Textile Co., Ltd. days
to compare
Eden Road Company Hangzhou De Licacy affiliated company Sales 5,457 Trade at general price Open Account 90 General customer open - - -
Textile Co., Ltd. days account 45-120 days
Eden Road Hangzhou De Licacy affiliated company Sales 6,745 Trade at general price Open Account 90 General customer open 3,400 2 -
International Textile Co., Ltd. days account 45-120 days
Ltd.(H.K.)
Eden Road Hangzhou De Licacy affiliated company Purchase 13,231 Trade at general price Open Account 90 General customer open ( 12,975 ) 14 -
International Textile Co., Ltd. days account 45-120 days
Ltd.(H.K.)
Thousand Well Hangzhou De Licacy affiliated company Purchase 332,601 Trade at general price Open Account 90 No general customers - - -
International Limted Textile Co., Ltd. days
to compare
Fastpower Limited Hangzhou De Licacy affiliated company Purchase 34,064 Trade at general price Open Account 90 No general customers - - -
Textile Co., Ltd. days
to compare
Thousand Well Hangzhou De Licacy affiliated company Purchase 105,665 Trade at general price Open Account 90 No general customers ( 5,935 ) 100 -
(Samoa) International Textile Co., Ltd. days
to compare
Limted
Fastpower (Samoa) Hangzhou De Licacy affiliated company Purchase 8,347 Trade at general price Open Account 90 No general customers ( 8,344 ) 100 -
Limited Textile Co., Ltd. days
to compare
Futures co., Ltd A Apex (Anqing) Textile Co., Ltd affiliated company Sales 5,885 Trade at general price Open Account 90 No general customers 4,253 62 -
pex Textile Co., Ltd days to compare
Futures co., Ltd affiliated company Sales 15,119 Trade at general price Open Account 90 No general customers 2,575 38 -
days
to compare
Total Express Ltd. Apex Textile Co., Ltd affiliated company Purchase 915,988 Trade at general price Open Account 90 No general customers ( 45,499 ) 100 -
days
to compare
----- End of picture text -----

105

Stock Number ： 1464

De Licacy Industrial Co., Ltd.and Subsidiaries

Business relationships between parent-subsidiaries and subsidiaries and significant transactions and amount

For year ended December 31, 2020.

Schedule 10

(In thousands of New Taiwan Dollars)

==> picture [1009 x 527] intentionally omitted <==

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

Transaction Situation
The relationship
Consolidated Total
No. Trader’s Name Trading Partners with traders
Item Amount Trading Terms Revenue or Total
(Note 1)
Assets (%)
0 The company Tung Ming Company (Note3) (1) Operation Income $ 6,750 Trade at general price ， open account 60days receipt -
Operation cost 127,247 Trade at general price ， open account 30-90days payment 。 1
Chadtex Company (1) Operation Income 79,158 Trade at general price ， open account 60days receipt 1
Operating cost (purchase and processing 121,353 Trade at general price ， open account 30days payment 。 1
fee)
-
Operation cost(manufacturing expense) 6,322
-
Accounts Receivable - Related parties 8,627
-
Other payable - related parties 16,098
Lucky Unique Enterprise Company (Note3) (1) Operation Income 17,591 Trade at general price ， open account 60days receipt -
Operation cost 45,420 Trade at general price ， open account 60days payment 。 1
E Textile Co .,Ltd. (Note3) (1) Operation Income 6,744 Trade at general price ， open account 60days receipt -
New Lake Ltd. (1) Operation Income 123,106 Trade at general price ， open account 30-60days receipt 1
Operation cost 451,073 Trade at general price ， open account 30-90 days payment 。 5
-
Accounts Receivable - Related parties 13,947
-
Accounts Payable - related parties 43,685
Vietnam De Licacy Company (1) Interest income 6,589 -
Other receivable - related parties 348,276 2
Best Alliance International Limited (1) Other receivable - related parties 74,585 -
Total Express Ltd. (1) Other receivable - related parties 129,089 1
1 Hangzhou De Licacy Textile Thousand Well International Limted (3) Operation Income 332,601 Trade at general price ， open account 90 days receipt 4
Co., Ltd.
Thousand Well (Samoa) International Limted (3) Operation Income 105,665 Trade at general price ， open account 90 days receipt 1
-
Accounts Receivable - Related parties 5,935
Fastpower Limited (3) Operation Income 34,064 Trade at general price ， open account 90 days receipt -
Fastpower (Samoa) Limited (3) Operation Income 8,347 Trade at general price ， open account 90 days receipt -
-
Accounts Receivable - Related parties 8,344
De Fa Company (3) Operation cost 60,260 Trade at general price ， open account 120 days payment 。 1
-
Accounts Payable - related parties 8,982
Apex Textile Co., Ltd (3) Operation Income 8,710 Trade at general price ， open account 30 至 90 days receipt -
Other income 9,241 -
Other receivable - related parties 420,161 2
Eden Road Company (3) Operation cost 5,457 Trade at general price ， open account 90 days payment 。 -
Eden Road International Ltd.(H.K.) (3) Operation Income 13,231 Trade at general price ， open account 90 days receipt -
Operation cost 6,745 Trade at general price ， open account 90 days payment 。 -
-
Accounts Receivable - Related parties 12,975
Apex (Anqing) Textile Co., Ltd (3) Operation Income 7,296 Trade at general price ， open account 30-90 days receipt -
-
Accounts Receivable - Related parties 7,880
Best Alliance International Limited (3) Other payable - related parties 68,352 -
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(continued)

106

(continued from pervious page)

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

Transaction Situation
The relationship
Consolidated Total
No. Trader’s Name Trading Partners with traders
Item Amount Trading Terms Revenue or Total
(Note 1)
Assets (%)
2 Thousand Well Eden Road Company (3) Operation Income $ 178,950 Trade at general price ， open account 90 days receipt 2
International Limted
Hong Kong Eden Road Company (3) Operation Income 153,651 Trade at general price ， open account 90 days receipt 2
3 Thousand Well (Samoa) Hong Kong Eden Road Company (3) Operation Income 105,665 Trade at general price ， open account 90 days receipt 1
International Limted
-
Accounts Receivable - Related parties 67,647
-
temporary receipts 61,366
4 Fastpower Limited Eden Road Company (3) Operation Income 21,427 Trade at general price ， open account 90 days receipt -
Hong Kong Eden Road Company (3) Operation Income 12,637 Trade at general price ， open account 90 days receipt -
5 Fastpower (Samoa) Hong Kong Eden Road Company (3) Operation Income 6,659 Trade at general price ， open account 90 days receipt -
Limited
-
Accounts Receivable - Related parties 6,655
6 Eden Road Company De Licacy Samoa Company (3) Other receivable - related parties 13,667 -
7 Hong Kong Eden Road New Lake Ltd. (3) Operation Income 13,802 Trade at general price ， open account 90 days receipt -
Company
-
Accounts Receivable - Related parties 13,622
Best Alliance International Limited (3) Other payable - related parties 68,352 -
8 Lucky Unique Enterprise E Textile Co .,Ltd. (Note3) (3) Operation Income 14,815 Trade at general price ， open account 90 days receipt -
Company (Note3)
Gain Faith Investments Ltd (Note3) (3) Operation expense 5,773 -
9 Apex Textile Co., Ltd Total Express Ltd. (3) Operation Income 915,988 Trade at general price ， open account 90 days receipt 11
-
Accounts Receivable - Related parties 45,499
-
Other payable - related parties 48,627
Apex (Anqing) Textile Co., Ltd (3) Operation Income 100,262 Trade at general price ， open account 90 days receipt 1
Operation cost 192,039 Trade at general price ， open account 90 days payment 。 2
Sales of property, plant, and equipment 99,835 1
-
Accounts Receivable - Related parties 86,811
-
Accounts Payable - related parties 33,223
-
Other receivable - related parties 76,772
prepayment for purchases 242,600 1
-
De Licacy Samoa Company (3) Other payable - related parties 76,896
Futures co., Ltd (3) Operation cost 5,885 Trade at general price ， open account 90 days payment 。 -
10 De Shen (Cayman) Vietnam De Licacy Company (3) Interest income 7,089 -
Holdings Co., Ltd.
Other receivable - related parties 226,105 1
11 Vietnam De Licacy New Lake Ltd. (3) Operation Income 905,378 Trade at general price ， open account 120 days receipt 11
Company
Operation cost 627,275 Trade at general price ， open account 90 days payment 。 7
-
Interest expenditure 9,753
Purchase of property, plant and 28,133 -
equipment
Accounts Receivable - Related parties 285,483 2
Accounts Payable - related parties 520,823 3
-
Other payable - related parties 26,037
De Hong(Vietnam) Company (3) Operation cost 20,199 Trade at general price ， open account 30 days payment 。 -
-
R&D expense 5,085
De Licacy Samoa Company (3) Other payable - related parties 116,440 1
----- End of picture text -----

(continued)

107

(continued from pervious page)

==> picture [1007 x 142] intentionally omitted <==

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

Transactions
Trader’s
Consolidated Total
No. Traders’ Name Trading partners relationship
Item Amount Trading terms Revenue or Total
(Note 1)
Assets (%)
12 De Hong Company De Hong (Vietnam)Company (3) Operating Income $ 8,188 Transactions at general price, Open Account 90 days. -
Other Accounts receivable- related 6,589 -
parties
13 Lucky Apex Ventures Apex (Anqing) Textile Co., Ltd (3) Other receivable- related parties 121,154 1
Limited
14 Futures co., Ltd Apex (Anqing) Textile Co., Ltd (3) Operating income 15,119 Transactions at general price, Open Account 90 days. -
----- End of picture text -----

Note 1: The three types of trader’s relationship are as follows:

(1) Parent company to subsidiary

。 (2) subsidiary to parent company

(3) subsidiary to subsidiary

Note 2: Written off at the time of the preparation of the consolidated financial statements. Note 3: The subsidiary belonged to the Company before July 8, 2020.

108

De Licacy Industrial Co., Ltd. Major Shareholders’ Information December 31, 2020

Schedule 11

==> picture [472 x 86] intentionally omitted <==

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

No. of Shares
Names of Major Shareholders Number of shares
shareholding ratio
held(shares)
Fu-Fa International Investment Co. Ltd. 32,928,067 8.56%
Fu-Hwa Investment Co. Ltd. 30,000,994 7.8%
Fuson International Trade Co. Ltd. 30,000,443 7.8%
----- End of picture text -----

Note1: The information on major shareholders in this Schedule is based on the last business day of the quarter in which the shareholders held 5% or more of the Company's total common shares (including treasury stock) that have been delivered without physical registration. The equity in the consolidated financial statements may differ from the actual number of shares delivered without physical registration due to differences in the basis of computation.
Note2: The above information is revealed by the trustee's individual subaccount of the trust account opened by the trustee if the shareholder has delivered the shares to the trust. As for the shareholder's shareholding of more than 10% of insider shares reported under the Securities and Exchange Act, the shareholdings include the shareholdings of the shareholders plus the shares delivered to the trust and the shareholder has the right to decide the use of the trust property, etc. Please refer to the Market Observation Post System for the information on insiders’ shareholding report.

109

Stock Number ： 1464

De Licacy Industrial Co., Ltd.and Subsidiaries Property, Plant and Equipment For the years ended December 31 of 2020 and 2019

Schedule 12

(In thousands of New Taiwan Dollars)

	OwnedLand	Land and Improvements	Buildings MachineryEquipment	Buildings MachineryEquipment	Transportation Equipment	Other Equipment	Real Estate under construction
								Total
Cost
Balance as of January 1, 2019	$ 405,335	$ 41,570	$ 1,873,814	$ 6,080,122	$ 77,181	$ 1,648,812	$ 550,945	$ 10,677,779
Additions	-	-	28,294	747,235	9,434	87,418	228,088	1,100,469
Disposal	-	-	- (	706,370 ) (	11,785 ) (	34,355 ) (	2,559 ) (	755,069 )
Reclassification	-	28,305	378,068	170,283	-	82,802 (	474,435 )	185,023
Net exchange difference	- (	1,456 ) (	41,835 ) (	148,498 ) (	1,608 ) (	41,669 ) (	8,269 ) (	243,335 )
Balance on December 31, 2019	$ 405,335	68,419	2,238,341	6,142,772	73,222	1,743,008	293,770	10,964,867

Accumulated depreciation and impairment
Balance as of January 1, 2019	$ -	$ 12,028	$ 869,684	$ 2,741,542	$ 44,344	$ 974,799	$ -	$ 4,642,397
Depreciation expense	-	4,756	54,245	286,581	6,744	133,577	-	485,903
Disposal	-	-	- (	320,172 ) (	9,992 ) (	30,602 )	- (	360,766 )
Net exchange differences	- (	168 ) (	13,576 ) (	44,336 ) (	767 ) (	23,656 )	- (	82,503 )
Balance on December 31, 2019	$ -	$ 16,616	$ 910,353	$ 2,663,615	$ 40,329	$ 1,054,118	$ -	$ 4,685,031

Net amount on December 31, 2019	$ 405,335	$ 51,803	$ 1,327,980	$ 3,479,157	$ 32,893	$ 688,890	$ 293,770
								$ 6,279,836

Costs
Balance on January 1, 2020	$ 405,335	$ 68,419	$ 2,238,341	$ 6,142,772	$ 73,222	$ 1,743,008	$ 293,770	$ 10,964,867
Additions	4,022	-	2,795	136,246	2,429	79,674	213,706	438,872
Disposal	-	-	- (	50,858 ) (	9,233 ) (	23,938 )	- (	84,029 )
Reclassification	-	-	39,454	175,774	92	33,879 (	113,432 )	135,767
Acquired through business combinations	-	-	-	-	-	375	-
								375
Disposal of subsidiaries (	115,382 ) (	1,706 ) (	105,307 ) (	460,696 ) (	10,011 ) (	206,696 )	- (	899,798 )
Net exchange differences	- (	2,571 ) (	33,422 ) (	80,012 ) (	826 )	5,478	3,938 (	107,415 )
Balance on December 31, 2020	$ 293,975	$ 64,142	$ 2,141,861	$ 5,863,226	$ 55,673	$ 1,631,780	$ 397,982	$ 10,448,639

Accumulated depreciation and impairment
Balance as of January 1, 2020	$ -	$ 16,616	$ 910,353	$ 2,663,615	$ 40,329	$ 1,054,118	$ -	$ 4,685,031
Depreciation expense	-	5,909	53,179	361,131	5,566	130,978	-	556,763
Disposal	-	-	- (	32,476 ) (	8,266 ) (	15,574 )	- (	56,316 )
Acquired by business combination	-	-	-	-	-	19	-	19
Disposal of subsidiaries	- (	1,659 ) (	69,810 ) (	429,660 ) (	7,617 ) (	171,634 )	- (	680,380 )
Net exchange differences	- (	447 )	2,849	3,734 (	97 )	15,327	-	21,366
Balance on December 31, 2020	$ -	$ 20,419	$ 896,571	$ 2,566,344	$ 29,915	$ 1,013,234	$ -	$ 4,526,483

Net amount on December 31, 2020	$ 293,975	$ 43,723	$ 1,245,290	$ 3,296,882	$ 25,758	$ 618,546	$ 397,982
								$ 5,922,156

110

AI assistant

DE LICACY — Annual Report 2020

51822_rns_2020-11-12_a7cf914a-5d2d-46aa-888a-63ae5cc76fac.pdf

§CONTENTS§

Statement of Financial Report on Consolidation of Related Enterprises

Opinion

Basis of Opinion

Key Audit Matter

Other Matters

Management's and Governance's Responsibility for the Consolidated Financial Statements

Auditors’ Responsibilities for the Audit of the Financial Statements

De Licacy Industrial Co., Ltd.and Subsidiaries Consolidated Balance Sheets

The Years Ended December 31, 2020 and 2019

De Licacy Industrial Co., Ltd.and Subsidiaries Consolidated Statements of compresensive Income For the Years Ended December 31 of 2020 and 2019

De Licacy Industrial Co., Ltd.and Subsidiaries Consolidated Statements of Changes in Equity For the Years Ended December 31, 2020 and 2019

De Licacy Industrial Co., Ltd.and Subsidiaries Consolidated Statements of Cash Flows For the years ended December 31 of 2020 and 2019 (In thousands of New Taiwan Dollars)

(continued from the previous page)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019 (In thousands of New Taiwan Dollars, unless stated otherwise)

1. Company history

2. The date and procedures for passing the financial report

3.Application of newly issued and revised standards and interpretations

4. Summary explanation of major accounting policies

(1) Statement of compliance

(4) Basis of consolidation

(5) Business Combinations

(6) Foreign currencies

(7) Inventories

(8) Investments in associates and joint venture

(9) Property, plant, and equipment

(10) Investment properties

(11) Goodwill

(12) Intangible assets

1. Intangible assets acquired separately.

(14) Financial instruments

1. Financial assets

(1) Measurement categories

C.Investments in equity instruments at FVTOCI

(2) Impairment of financial assets

(3) Derecognition of financial assets

2. Financial liabilities

(2) Derecognition of financial liabilities

3. Derivative instruments

(15) Treasury Stocks

(16) Provisions

(17) Revenue recognition

Sales Revenue

(18) Lease

(19) Borrowing Costs

(20) Government grants

(21) Employee benefits

1. Short-term employee benefits

2. Retirement benefits

(22) Taxation

3. Current and deferred taxes

6. Explanation of important accounting items

7. Financial Instruments at fair value through profit and loss.

December 31, 2020

8. Financial assets – Equity instrument investment at fair value through other comprehensive profit or loss

9.Financial assets at amortized cost

10. Notes Receivable, Net Accounts Receivable, and other Accounts Receivable

(2) Accounts Receivable

December 31 2020

(3) Other Receivables

11. Inventory

12. Subsidiary

Subsidiaries included in Consolidated Financial Statements

(continued from the previous page)

13. Investments accounted for using equity method

1). Significant affiliates

Perfect Step Ltd.

Sung Yu Company

Lucky Unique Enterprise Company

2.Investment in joint ventures

－ Significant Joint Venture New Premium Enterprise Co., Ltd.

14. Property, Plant and Equipment

15. Lease Agreement

(1) Right-of-use asset

(2) Lease liabilities

(3) Important Tenant Activities and Terms

16. Investment fixed properties

DE LICACY Annual Report 2020

`－` Significant Joint Venture New Premium Enterprise Co., Ltd.

`－` (1) Bank Syndication Quota NT$2,200,000,000

`－` (2) Bank Syndication Quota USD28,000,000