DE LICACY - Annual Report 2020 | FinancialReports.eu

Stock Number ： 1464

De Licacy Industrial Co., Ltd.

Individual 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§

		FinanciaReport
ITEMS	Page	Note No
1. Cover	1	-
2. Directory	2	-
3. Independent Auditors’ report	3`～`6	-
4. Individual balance sheet	7	-
5. Individual statements of comprehensive income	8`～`9	-
6. Individual Statement of Changes in Equity	10	-
7. Individual cash flow statement	11`～`12	-
8. Notes to the Individual financial report
(1) Company history	13	1
(2) The date and procedures for passing the financial	13	2
report
(3) Application of newly issued and revised standards	13`～`14	3
and interpretations
(4) Summary explanation of major accounting	15`～`24	4
policies
(5) Major sources of uncertainty in major accounting	24	5
judgments, estimates and assumptions
(6) Explanation of important accounting items	24`～`54`，`72	6-32
(7) Related party transactions	54`～`59	33
(8) Pledged assets	59	34
(9) Significant contingent liabilities and unrecognized	59	35
contractual commitments
(10) Major disaster losses	-	-
(11) Significant post-period events	-	-
(12) Other	60	36-37
(13) Matters disclosed in the notes
1. Information about major transactions	60`～`61`，`62`～`67	38
2. Information about reinvestment business	61`，`68	38
3. Mainland Investment Information	61`，`69`～`70	38
4. Major Shareholder Information	61`，`71	38
(14) Departmental Information	-	-
9. The contents of statements of major accouonting items	73`～`91

Independent 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 (the “De Licacy Group”), which comprise the individual balance sheets as of December 31, 2020 and 2019, and the individual statements of comprehensive income, individual statements of changes in equity and individual statements of cash flows for the years then ended, and the notes to the individual 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 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 financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers 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 individual financial statements of the De Licacy Group are as follows:

As stated in Note 4-5 Inventories, Note 5 inventory obsolescence loss and Note 11 Inventories to the individual financial Statements, De Licacy inventories amounted to NT$1,371,756,000 as of December 31, 2020, which accounted for 10% of the total individual assets.

Due to the book value of inventory is significant to the overall individual 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.

The accountants’ reasonable assessment of obsolete inventory is as follows:

Understand and evaluate the effectiveness of the design and implementation of the internal inventory control system.
Assess the year-and the inventory age, verify the accurancy of the inventory age classification, and then recalculate if it should include loss of obsolete inventory.
Conduct stocktake at the end of the year and confirm and assess whether the stock is out of date or damaged.

Other Matters

The financial statements included in the individual financial statements of Deloitte Touche Tohmatsu, Inc. and its investee company. Accordingly, our opinion on the individual 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 individual assets. The individual 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 (21%) and (6%) of the individual total profit or loss.

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

Management's responsibility is to prepare individual 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 individual financial statements as is necessary to enable the preparation of individual financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the individual 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 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 financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure, and content of the 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 constited entities of the Company to express our opinions on the individual financial statements. We are responsible for the guidance, supervision and execution of the Company's audits and we are responsible for providing auditing opionions with the Company.
5 -

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

Date: 19 March 2021

De Licacy Industrial Co., Ltd. Individual Balance Sheets

For the Years Ended December 31 of 2020 and 2019

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(In Thousands of New Taiwan Dollars)
December 31 2020 December 31 2019
code Assets Amount ％ Amount ％
Current Assets
1100 Cash and Cash Equivalents(Notes 4 and 6) $ 341,357 3 $ 470,586 4
1110 Financial assets at fair value through profit and loss- current (Notes 4 and 7) 9,387 - 11,789 -
1136 Financial assets at amortized cost-current (Notes 4, 9 and 34) 2,689,686 20 2,107,673 16
1150 Notes receivable(Notes10 and 25) 26,432 - 41,203 -
1160 Notes receivable － related parties(Notes 25 and 33) 25,152 - 23,568 -
1170 Net accounts receivable(Notes 4,10, and 25) 347,100 3 558,588 4
1180 Accounts receivable － related parties(Notes25 and 33) 116,894 1 98,226 1
1200 Other receivables 16,850 - 19,803 -
1210 Other receivables – related parties(Note 33) 556,912 4 214,220 2
130X Inventory(Notes 4,5, and 11) 1,371,756 10 1,294,317 10
1410 Prepayments(Notes 16 and 33) 24,549 - 30,928 -
1470 Other current assets(Notes17 and 27) 38,916 - 53,159 1
11XX Total current assets 5,564,991 41 4,924,060 38
Non-current assets
1517 Financial assets measured at fair value through other comprehensive gains and
- -
losses-non-current (Notes 4 and 8) 56,222 51,294
1550 Investments using the equity method (Notes 4 and 12) 6,847,702 50 6,917,644 53
1600 Property, plant and equipment(Notes4, 13, 33, and 34) 904,882 7 909,783 7
1755 Right-of-use assets(Notes4 and 14) 23,195 - 20,667 -
1780 Intangible assets(Notes4 and 15) - - 93 -
1840 Deferred income tax assets(Notes4 and 27) 247,413 2 139,601 1
1920 Deposited margin(Note4) 10,488 - 13,142 -
1915 Prepayment for equipment 20,325 - 70,736 1
1975 Net confirmed welfare assets(Notes 4 and 23) 14,522 - - -
15XX Total non-current assets 8,124,749 59 8,122,960 62
1XXX Total assets $ 13,689,740 100 $ 13,047,020 100
Code Liabilitities and Equity
Current liabilities
2100 Short-term loans (note18 and 34) $ 4,611,976 34 $ 2,745,105 21
2110 Short-term notes payable (Note 18) 709,501 5 429,790 3
2120 Financial liabilities measured at fair value through profit and loss-current (notes 4 and
- -
7) 18,919 2,462
2150 Notes payable (Note 19) 61,205 1 77,029 1
2160 Notes payable-related parties (Note 33) 32,206 - 26,092 -
2170 Accounts payable (Note 19) 94,909 1 112,254 1
2180 Accounts payable-related parties (Note 33) 83,871 1 103,262 1
2200 Other payables (Note 20) 152,393 1 197,381 2
2220 Other payables-related parties (Note 33) 16,521 - 26,013 -
2230 Current tax liabilities (Notes 4 and 27) 2,557 - - -
2280 Lease liabilities-current (Notes 4 and 14) 14,035 - 10,183 -
2313 Deferred income-current(Notes 4 and 21) 7,472 - - -
2322 Long-term loans due within one year(Notes 18 and 34) 273,158 2 1,168,000 9
2365 Refund liabilities-current(Notes 4 and 22) - - 2,789 -
2399 Other current liabilities 51,229 - 36,863 -
21XX Total current liabilities 6,129,952 45 4,937,223 38
Non-current liabilities
2541 Long-term bank loans(Notes18 and 34) 2,805,521 21 2,563,886 20
2570 Deferred tax liabilities(Notes4 and 27) 36,823 - 35,949 -
2580 Lease liabilities-non-current(Notes4 and 14) 9,378 - 10,604 -
2630 Deferred income -non-cirremt (Notes4 and 21) 1,422 - - -
2640 Net confirmed benefit liabilities-non-current(Notes 4 and 23) - - 22,233 -
2645 Deposit margin 2,327 - 4,011 -
25XX Total non-current liabilities 2,855,471 21 2,636,683 20
2XXX Total liabilities 8,985,423 66 7,573,906 58
Equity (Note 24)
3110 Common Stocks 3,845,657 28 3,845,657 30
3200 Capital reserve 791,558 6 942,169 7
Retained surplus
3310 Legal reserve 283,732 2 228,353 2
3320 Special reserve 401,956 3 293,042 2
3350 Unappropriated earnings ( 162,083 ) ( 1 ) 578,530 4
3300 Total retained earnings 523,605 4 1,099,925 8
3400 Other equities ( 456,503 ) ( 4 ) ( 401,956 ) ( 3 )
3500 Treasury stocks (Note 4) - - ( 12,681 ) -
3XXX Total equity 4,704,317 34 5,473,114 42
Total Liabilities and Equities $ 13,689,740 100 $ 13,047,020 100
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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.

Individual Statements of comprehensive Income

For the Years Ended December 31 of 2020 and 2019

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

Code Operating income (Note 4, 25, and 33) 4100 Net sales revenue 4800 Other operating income 4000 Total operating income Operating costs(Notes11, 23, 26, and 33) 5110 Cost of goods sold 5900 Gross Operating Income 5910 Unrealized loss of subsidiary and associated companies (Note 4) 5920 Realized loss of subsidiary and associated companies (Note 4) 5950 Gross realized operating income Operating expenses(Notes10, 23, 26, and 33) 6100 Marketing expenses 6200 General and administrative expenses 6300 Research and development expenses 6450 Expected credit loss (Gain) 6000 Total operating expenses 6500 Net other income and expenses(Notes 26 and 33) 6900 Operating income(net loss) Non-operating income and expenses (Notes 4,7,26 and 33) 7100 Interest income 7010 Other income 7020 Other benefits and losses 7050 Financial costs 7070 Share of losses of affiliated companies using the equity method 7000 Total non-operating income and expenses 7900 Net profit before tax (net loss)		2020		`％` 100 - 100 93 7 - - 7 6 4 4 1 15 - 8) 1 4 7 ) 3 ) 3 2) 10 )		2019
		Amount $ 3,002,049 3,591 3,005,640 2,807,286 198,354 6,405 3,815) 200,944 181,924 99,275 123,078 33,378 437,655 6 236,705) 40,280 121,553 215,109 ) 102,090 ) 93,887 61,479) 298,184 )				Amount $ 4,265,141 4,235 4,269,376 3,681,229 588,147 3,815 6,909) 585,053 225,631 144,454 108,789 676) 478,198 31,392 138,247 41,760 46,925 81,265 ) 93,329 ) 540,550 454,641 592,888		`％`
	( ( ( ( ( (		( ( ( ( (		( ( ( (		( (	100 - 100 87 13 - - 13 5 3 3 - 11 1 3 1 1 2 ) 2 ) 13 11 14

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2020 2019
Code Amount % Amount ％
7950 Income tax expense (benefit) (Notes 4 and
27) ( 90,898) 3 34,867 ( 1 )
8200 Net profit (net loss) for the year ( 207,286 ) ( 7 ) 558,021 13
Other comprehensive loss(net)
8310 Items not reclassified to profit or loss
8311 Determine the remeasurement of the benefit
plan (note 23) 28,389 1 ( 6,144 ) -
8316 Unrealized appraisal gains and losses of
equity instrument investments measured at
fair value through other comprehensive gains
and losses (note 24) 8,894 - 30,547 1
8331 The equity method is used to recognize the
re-measurement of defined welfare plans of
subsidiaries and affiliated companies. 621 - 685 -
8336 The equity method is used to recognize the
unrealized gains and losses of subsidiaries
and related companies through other
comprehensive gains and losses to measure
equity instruments at fair value. (Note 24)
- -
8,109 17,628
8349 Income tax related to items not reclassified
- -
(Note 27) ( 5,678 ) 1,229
40,335 1 43,945 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 24) ( 88,840 ) ( 3 ) ( 192,082 ) ( 5 )
8380 Share of other comprehensive profits and
losses of subsidiaries and affiliates
- -
recognized using the equity method(Note 24) ( 3,362 ) ( 3,423 )
8399 Income tax related to items that may be
reclassified (Notes 24 and 27) 17,768 1 38,416 1
8360 ( 74,434 ) ( 2 ) ( 157,089 ) ( 4 )
8300 Total net comprehensive profit and loss for
the year (after tax) ( 34,099 ) ( 1 ) ( 113,144 ) ( 3 )
8500 Total comprehensive profit and loss for the
year ( $ 241,385 ) ( 8 ) $ 444,877 10
Earnings per share (net loss) (Note 28)
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 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

Individual 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)
Retained Earnings Other Equities
Unrealized gains or losses
Exchange differences from on financial assets at fair
the financial statements of value through other
Code Common Stock Capital Surplus Legal reserve Special reserve Unappropriated Earnings foreign operating entitities comprehensive income Total Treasury Stocks Grand Total
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
Appropriations of 2018 earnings(Note 24)
B1 Legal Reserve - - 20,216 - ( 20,216 ) - - - - -
B3 Special reserve - - - 12,408 ( 12,408 ) - - - - -
B5 Cash dividends to shareholders – NT$ 0.55per share - - - - ( 184,011 ) - - - - ( 184,011 )
C15 Cash dividends from Capital Surplus to shareholders –
NT$0.95 per share ( Note 24) . - ( 317,837 ) - - - - - - - ( 317,837 )
D1 Net income for the year ended December 31 2019 - - - - 558,021 - - - - 558,021
D3 Other comprehensive (loss) income after tax for the year
ended December 31, 2019 - - - - ( 4,230 ) ( 157,089 ) 48,175 ( 108,914 ) - ( 113,144 )
D5 Total comprehensive (loss) income for the year ended Dec.
31 2019 - - - - 553,791 ( 157,089 ) 48,175 ( 108,914 ) - 444,877
E1 Issurance of ordinary shares for cash (Note 24) 500,000 597,987 - - - - - - - 1,097,987
M1 Dividends distributed to the subsidiary and adjust capital
surplus (Note 24) - 1,827 - - - - - - - 1,827
M5 Difference between actual acquisition of the subsidiary’s
equity price and book value - 8,710 - - - - - - - 8,710
M7 Changes equity to the Subsidiary ownership
- ( 1,480 ) - - - - - - - ( 1,480 )
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
Appropriations of 2019 earnings (Note 24)
B1 Legal Reserve - - 55,379 - ( 55,379 ) - - - - -
B3 Special Reserve - - - 108,914 ( 108,914 ) - - - - -
B5 Cash dividends to shareholders - NT$1.05 per share - - - - ( 403,794 ) - - - - ( 403,794 )
C15 Cash Dividends from Capital Sueplus to shareholders-
NT$0.45 per share(Note 24) - ( 173,055 ) - - - - - - - ( 173,055 )
D1 Net loss for the year ended December 31, 2020 - - - - ( 207,286 ) - - - - ( 207,286 )
D3 Other comprehensive (loss) income after tax for the year
ended December 31, 2020 - - - - 23,332 ( 74,434 ) 17,003 ( 57,431 ) - ( 34,099 )
D5 Total comprehensive (loss) income for the year ended
December 31, 2020 - - - - ( 183,954 ) ( 74,434 ) 17,003 ( 57,431 ) - ( 241,385 )
M3 The subsidiary on liquidation (Notes 24) - 7,459 - - - 12,788 - 12,788 12,681 32,928
M5 Difference between actual acquisition of the subsidiary’s equity
price and book value (Note 12) - 675 - - - - - - - 675
M7 Changes equity to the Subsidiary ownership (Note 24) - 14,310 - - - 422 1,102 1,524 - 15,834
Q1 Disposal of equity instruments measured at fair value through
other comprehensive income (Note 24) - - - - 11,428 - ( 11,428 ) ( 11,428 ) - -
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
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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

10 -

De Licacy Industrial Co., Ltd.

Individual Cash Flows Statement

For the Year Ended December 31 2020 and 2019

(in thousands of New Taiwan Dollars)

Code Cash flow from operating activities A10000 Income (loss) before tax this year Adjustments for: A20010 Income and expense: A20100 Depreciation expenses A20200 Amortization expenses A20300 Expected credit loss (Gain) A20400 Losses from 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 profits and losses of subsidiaries and affiliates using the equity method A22500 Gains on disposal of Property, plant and equipment A23700 Inventory Valuation and Obsolescence Losses A23900 Unrealized subsidiaries and associated companies losses A24000 Realized subsidiaries and associated companies losses A24100 Unrealized foreign exchange losses A29900 Benefits from liquidation of subsidiary using the equity method A24500 Gains from lease amendment A29900 Provision for (reversal) liabilities A30000 Changes in operating assets and liabilities A31130 Notes receivable A31140 Notes receivable-related parties A31150 Accounts receivable A31160 Accounts receivable-related parties A31180 Other receivables A31190 Other receivables-related parties A31200 Inventory A31230 Prepayments A31240 Other current assets A32110 Decrease in financial liabilities held for trading A32130 Notes payable A32140 Notes payable-related parties A32150 Accounts payable A32160 Accounts payable-related parties A32180 Other payables A32190 Other payables-related parties A32210 Deferred income-current and non-current A32230 Other current liabilities A32240 Net defined benefit liabilities-non-current A33000 Cash used in operations A33100 Interest received A33200 Dividends received A33300 Interest paid A33500 Income tax paid AAAA Net cash used in operating activities		2020 $ 298,184 ) 135,352 93 33,378 17,623 102,090 40,280 ) - - 93,887 ) 6 ) 23,625 6,405 ) 3,815 109,982 9,154 ) 10 ) 2,789 ) 14,771 1,584 ) 178,110 18,668 ) 1,998 ) 2,300 ) 101,064 ) 6,379 14,243 2,462 ) 16,629 ) 6,114 17,345 ) 19,391 ) 45,283 ) 9,492 ) 8,894 14,366 8,366) 26,462) 32,404 39,147 101,686 ) 4,380) 60,977)		2019
	( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (	$ 592,888 118,256 148 676 ) 3,734 93,329 41,760 ) 80 ) 737 540,550 ) 31,392 ) - 3,815 ) 6,909 34,662 - - 781 5,440 13,403 ) 102,074 ) 47,554 ) 5,352 ) 86,337 189,283 ) 1,610 30,804 ) 58 ) 50,270 ) 19,036 ) 27,691 20,686 ) 29,189 51,120 ) - 12,090 8,911) 143,023) 41,760 56,635 90,203 ) 58,267) 193,098)

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code 2020 2019
Cash flow from investing activities
B00040 Acquisition of Amortized cost financial assets ( 10,158,528 ) ( 17,428,866 )
B00060 Gains (losses) from sale of amortized
cost financial assets 9,478,204 17,061,233
B00100 Acquisition for Fair value through profit and loss
financial assets ( 20,969 ) ( 19,539 )
B00200 Disposal for fair value through profit and loss
financial assets 23,942 10,038
B00010 Acquisition for Fair value through other
-
comprehensive income financial assets ( 7,959 )
B00020 Sales for Fair value through other comprehensive
income financial assets 11,925 -
B01800 Acquisition of Investments accounted for using
Equity Method ( 363,825 ) ( 598,530 )
B02300 Net Cash generated from disposal of subsidiaries 466,216 -
B02400 Return of shares in liquidation of investee company
in the method of equity - 88
B02700 Acquisition of property, plant and equipment ( 46,934 ) ( 123,727 )
B02800 Proceeds from disposal of property, plant and
equipment 9,414 26,370
B03700 Refundable Deposits increase ( 160 ) ( 4,597 )
B03800 Refundable Deposits decrease 2,814 2,160
B04300 Other receivables – related parties increase ( 566,293 ) ( 76,064 )
B04400 Other receivables – related parties decrease 76,064 77,067
B04500 Acquisition of intangible assets - ( 112 )
B05500 Disposal of investing real-estate 146,827 -
B07100 Prepayment for equipment increase ( 20,325 ) ( 70,736 )
BBBB Net cash used in investing activities ( 969,587 ) ( 1,145,215 )
CASH FLOWS FROM FINANCING
ACTIVITIES
C00100 Short-term debt increase 20,296,772 14,977,805
C00200 Short-term debt decrease ( 18,429,901 ) ( 14,763,431 )
C00500 Short-term bills payable increase 3,898,627 3,578,715
C00600 Short-term bills payable decrease ( 3,618,916 ) ( 3,628,748 )
C01600 Payments of finance lease liabilities 1,334,900 2,983,850
C01700 Repayment of long-term debt ( 1,988,000 ) ( 2,005,325 )
C03000 Deposit received increase 5,649 9,345
C03100 Deposit received decrease ( 7,333 ) ( 7,360 )
C03700 Other payables- related parties increase - 35,000
C03800 Other payables – related parties decrease - ( 158,653 )
C04020 Repayment of the principal portion of lease
liabilities ( 13,614 ) ( 9,513 )
C04500 Cash dividends ( 576,849 ) ( 501,848 )
C04600 Proceeds from issurance of ordinary shares - 1,097,250
CCCC Net cash generared from financing activities 901,335 1,607,087
EEEE NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS ( 129,229 ) 268,774
E00100 CASH AND CASH EQUIVALENTS AT THE
BEGINNING OF THE YEAR 470,586 201,812
E00200 CASH AND CASH EQUIVALENTS AT THE END OF
THE YEAR $ 341,357 $ 470,586
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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

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De Licacy Industrial Co., Ltd.

NOTES TO INDIVIDUAL 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 individual financial statements is New Taiwan Dollars.

APPROVAL OF FINANCIAL STATEMENTS

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

APPLICATION OF NEW, AMENDED 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
Amendment to IFRS 4 “application to IFRS 9 - temporally exemption for Effective from issuing date
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New IFRSs Amendment to IFRS 4 “application to IFRS 9 - temporally exemption for	Effective Date Announced by IASB Effective from issuing date
extension”
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4, and IFRS 16 “Interest Rate	The Corporation shall apply these
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 concessions”	The Corporation shall apply these
	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.

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

Effective Date New IFRSs 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 January 1 2023 as Current or Non-current” Amendment to IAS 1” Disclosure of Accounting January 1 2023(Note 6) Policies” Amendment to IAS 8 “Accounting Estimates January 1 2023(Note 7) Definitions” Amendment to IAS 16 “Property, Plant and January 1 2022(Note 4) Equipment — Proceeds before Intended Use” Amendment to IAS 37 “Onerous Contracts — Cost January 1 2022(Note 5) of 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.
Note 2: 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.
Note 3: 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.
Note 4: 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.
Note 5: This amendment will be applied to contracts that have not fulfilled all their obligations as at 1 January 2022
Note 6: The Company shall apply these amendments postponed for annual reporting periods beginning on or after January 1, 2023.
Note 7: 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 individual 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.

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4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Statement of compliance

The individual 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 individual 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 are 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.

In the preparation of individual financial reports, the Company applies the equity method to investment subsidiaries and related enterprises.In order to make the annual profit or loss, other comprehensive profit or loss and equity of the individual financial report the same as the annual profit or loss, other comprehensive profit or loss and equity of the Company attributable to the owners of the Company in the individual financial report of the Company, a number of accounting differences on an individual basis are adjusted for the"Investment using the equity method","Profit or loss share of the subsidiaries and related companies using the equity method"and related equity items.

(3) Classification of current and non-current 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) 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

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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 recaculated).

In the preparation of individual financial reports, the assets and liabilities of foreign operating institutions (including subsidiaries and affiliates in countries in which they operate or in currencies different from the Company) are converted to NTD at the exchange rate of each balance sheet date.Income and expense loss items are converted at the average exchange rate for the period and the resulting conversion difference is recognized as other comprehensive profit or loss.

(5) Inventories

Inventories consist of raw materials, work in progress 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.

(6)Investment in Subsidiaries

The Company uses the equity method to account for its investment in subsidiaries.

A subsidiary is an entity over which the Company has control.

Under the equity method, the original investment is recognized at cost, and the carrying amount of the investment after the acquisition date increases or decreases in accordance with the Company's share of earnings and other comprehensive income or loss of the subsidiary and profit distribution. In addition, changes in the Company's other equity interests in subsidiaries are recognized in proportion to the Company's ownership interest.

Changes in the Company's ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The difference between the carrying amount of the investment and the fair value of the consideration paid or received is recognized directly in equity.

When the Company's share of loss in a subsidiary equals or exceeds its interest in the subsidiary (including the carrying amount of the subsidiary under the equity method and other long-term interests that are substantially part of the Company's net investment in the subsidiary), the loss continues to be recognized in proportion to the Company's ownership.

When control over a subsidiary is lost, the Company measures its remaining investment in the former subsidiary at fair value at the date of loss of control. The difference between the fair value of the remaining investment and the carrying amount of the investment at the date of loss of control, if any, is recognized in profit or loss for the current period. In addition, all amounts recognized in other comprehensive income or loss related to the subsidiary are accounted for on the same basis as if the Company had disposed of the related assets or liabilities directly.

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Unrealized gains or losses on downstream transactions with subsidiaries are eliminated in the individual financial statements. Gains or losses resulting from counter-current and side-stream transactions with subsidiaries are recognized in the individual financial statements only to the extent that they are not related to the Company's interest in the subsidiary.

(7) Investment in affiliated companies

An affiliate is an enterprise over which the Company has significant influence but which is not a subsidiary or a joint venture.

The Company uses the equity method for its investments in affiliated companies.

Under the equity method, investments in affiliated companies are initially recognized at cost, and the carrying amount of such investments is adjusted for any subsequent increases or decreases in the Company's share of income or loss of the affiliated companies and other comprehensive income or loss and profit distribution. In addition, changes in equity in affiliated companies are recognized in proportion to the Company's ownership interest.

Gains or losses resulting from transactions with affiliates are recognized in the financial statements only to the extent that they are not related to the Company's interest in the affiliates.

(8)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.

(9)Intangible assets

1. Separately acquired

Individually acquired intangible assets with finite useful lives are initially measured at cost and subsequently measured at cost less accumulated amortization. Intangible assets are amortized on a straight-line basis over their useful lives. The Company reviews the estimated useful lives, residual values and amortization method at least at each year-end and defers the effect of changes in applicable accounting estimates.

2. Derecognition

When an intangible asset is derecognized, the difference between the net disposal price and the carrying amount of the asset is recognized in profit or loss for the year.

(10) Impairment of property, plant and equipment, right-of-use assets and intangible assets
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The Company assesses at each balance sheet date whether there is any indication that property, plant and equipment, right-of-use assets and intangible assets may be impaired. If any indication of impairment exists, the recoverable amount of the asset is estimated. If the recoverable amount of an individual asset cannot be estimated, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Shared assets are allocated to the smallest group of cash-generating units on a reasonably consistent basis.

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

When the impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised recoverable amount, provided that the increased carrying amount does not exceed the carrying amount (net of amortization or depreciation) that would have been determined had the impairment loss not been recognized in prior years. Reversal of impairment loss is recognized in profit or loss.

(11) Financial instruments

Financial assets and financial liabilities are recognized in the individual balance sheets when the Company becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities that are not measured at fair value through profit or loss are measured at fair value plus transaction costs that are directly attributable to the acquisition or issuance of the financial assets or financial liabilities when the financial assets or financial liabilities are recognized initially. Transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

1. Financial assets

Regular transactions of financial assets are recognized and derecognized using trade date accounting.

(1) Types of measurement

The types of financial assets held by the Company are financial assets measured at fair value through profit or loss, financial assets measured at amortized cost and investments in equity instruments measured at fair value through other comprehensive income.

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 32.

B.Financial assets carried at amortized cost

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Financial assets are classified as financial assets carried at amortized cost if both of the following conditions are met

a. they are held within an operating model whose objective is to hold the financial assets to collect the contractual cash flows; and
b. the contractual terms give rise to cash flows at a specific date, which are solely payments of principal and interest on the principal amount outstanding.

Financial assets carried at amortized cost (including cash and cash equivalents, receivables and refundable deposits carried at amortized cost) are measured at amortized cost using the effective interest method to determine the total carrying amount less any impairment loss after initial recognition, with any foreign currency exchange gain or loss recognized in profit or loss.

Interest income is calculated by multiplying the effective interest rate by the total carrying amount of the financial asset, except for the following two cases.

a. For credit-impaired financial assets acquired or created, interest income is computed by multiplying the credit-adjusted effective interest rate by the amortized cost of the financial assets.
b. For financial assets that are not impaired but subsequently become impaired, interest income is computed by multiplying the effective interest rate by the amortized cost of the financial assets from the next reporting period after the impairment is applied.

Credit-impaired financial assets are those for which the issuer or the debtor has experienced significant financial difficulties, defaulted, it is probable that the debtor will declare bankruptcy or other financial reorganization, or the active market for the financial assets has disappeared due to financial difficulties.

Cash equivalents include time deposits that are highly liquid, readily convertible into fixed amounts of cash and subject to an insignificant risk of changes in value within three months from the date of acquisition, and are used to meet short-term cash commitments.

C.Investments in equity instruments measured at fair value through other comprehensive income or loss

At initial recognition, the Company has an irrevocable option to designate investments in equity instruments that are not held-for-trading and not acquired in a business combination with contingent consideration to be measured at fair value through other comprehensive income.

Investments in equity instruments measured at fair value through other comprehensive income are measured at fair value, with subsequent changes in fair value reported in other comprehensive income and accumulated in other equity. Upon disposal of an investment, the cumulative gain or loss is transferred directly to retained earnings and is not reclassified to profit or loss.

Dividends from investments in equity instruments measured at fair value through other comprehensive income are recognized in profit or loss when the Company's right to receive them is established, unless the dividends represent a partial recovery of the cost of the investment.

(2) Impairment of financial assets
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The Company assesses impairment losses on financial assets (including accounts receivable) measured at amortized cost at each balance sheet date based on expected credit losses.

An allowance for impairment is recognized on accounts receivable based on the expected credit loss over the period of the receivable. If there is no significant increase in credit risk, an allowance for loss is recognized on the basis of expected credit losses over 12 months, and if there is a significant increase, an allowance for loss is recognized on the basis of expected credit losses over the remaining period.

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

For internal credit risk management purposes, the Company determines that a default on a financial asset has occurred when internal or external information indicates that the debtor is unlikely to settle the obligation, without regard to the collateral held.

An impairment loss on a financial asset is recognized by reducing the carrying amount of the financial asset through an allowance account.

(3) Derecognition of financial assets

Financial assets are derecognized only when the Company's contractual rights to the cash flows from the financial assets have lapsed or when the financial assets have been transferred and substantially all the risks and rewards of ownership of the assets have been transferred to other enterprises.

When a financial asset is derecognized in its entirety at amortized cost, the difference between the carrying amount and the consideration received is recognized in profit or loss. When equity instruments measured at fair value through other comprehensive income are derecognized as a whole, the cumulative gain or loss is transferred directly to retained earnings and is not reclassified to profit or loss.

2.Equity Instruments
(1) Subsequent measurement

All of the Company's financial liabilities are measured at amortized cost using the effective interest method.

(2) Derecognition of financial liabilities

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

Derivative instruments

Derivatives are exchange rate swaps entered into by the Company to manage the Company's exposure to exchange rate risk.

Derivatives are initially recognized at fair value at the time the derivative contracts are entered into and subsequently remeasured at fair value at the balance sheet date, with gains or losses arising from subsequent measurements recognized directly in profit or loss. When the fair value of a derivative is positive, it is recorded as a financial asset; when the fair value is negative, it is recorded as a financial liability.

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(12)Treasury stocks

The carrying value of the parent company's stock held by a subsidiary is based on the carrying value of the investment in the parent company when the subsidiary becomes a subsidiary.

(13)Provision for Liabilities

The amount recognized as a provision for liabilities is the best estimate of the amount required to settle the obligation at the balance sheet date, taking into account the risks and uncertainties of the obligation. The provision for liabilities is measured as the discounted value of the estimated cash flows from the settlement of the obligation.

(14)Revenue Recognition

After recognizing performance obligations under customer contracts, the Company allocates the transaction price to each performance obligation and recognizes revenue when each performance obligation is satisfied.

Merchandise Sales Revenue

Revenue from merchandise sales is derived from sales of long- and short-staple fibers. The Company recognizes revenue and accounts receivable at the point when the customer has the right to set the price and use of the products and has the primary responsibility to re-sell the products, as well as the risk of obsolescence.

Therefore, the Company does not recognize revenue at the time of material removal.

(15)Leases

The Company assesses whether the contract is a lease at the contract inception date.

The Company is the lessor

A lease is classified as a finance lease when the terms of the lease transfer substantially all the risks and rewards incidental to ownership of the asset to the lessee. All other leases are classified as operating leases.

Lease payments under operating leases are recognized as income on a straight-line basis over the term of the relevant lease. The original direct costs incurred in acquiring an operating lease are added to the carrying amount of the underlying asset and recognized as an expense over the lease term on a straight-line basis.

2.The Company is the lessee

Right-of-use assets and lease liabilities are recognized at the lease commencement date for all leases, except for leases of low-value subject assets to which recognition exemptions apply and short-term leases where lease payments are recognized as expenses on a straight-line basis over the lease term.

Right-of-use assets are measured initially at cost (including the original measurement of the lease liability, lease payments made prior to the lease commencement date less lease incentives received, original direct cost and estimated cost of restoration of the subject asset) and subsequently measured at cost less accumulated depreciation, with adjustments for remeasurement of the lease liability. Right-of-use assets are presented separately in the individual balance sheets.

Right-of-use assets are depreciated on a straight-line basis from the commencement date of the lease to the earlier of the end of the useful life or the end of the lease term.

Lease liabilities are measured initially at the present value of the lease payments

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(which are fixed payments). If the interest rate implied by the lease is readily determinable, the lease payments are discounted using that rate. If the interest rate is not readily determinable, the lessee's incremental borrowing rate is used.

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, and interest expense is allocated over the lease term. If a change in the lease term results in a change in future lease payments, the Company remeasures the lease liability and adjusts the right-of-use asset accordingly, but if the carrying amount of the right-of-use asset is reduced to zero, the remaining remeasurement amount is recognized in profit or loss. Lease liabilities are presented separately in the individual balance sheets.

(16)Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an eligible asset are included as part of the cost of the asset until substantially all activities necessary to bring the asset to its intended use or sale condition have been completed.

Investment income earned on specific borrowings that are temporarily invested prior to the incurrence of qualifying capital expenditures is deducted from the cost of borrowings eligible for capitalization.

Except as described above, all other borrowing costs are recognized in profit or loss in the year in which they are incurred.

(17) Government Grants

Government grants are recognized only when there is reasonable assurance that the Company will comply with the conditions attached to the government grant and that the grant will be received.

Government grants related to revenue are recognized in other income on a systematic basis over the period in which they are intended to compensate the Company for the related costs recognized as expenses. Government grants that are contingent upon the Company's acquisition, construction or other acquisition of non-current assets are recognized as deferred revenue and are transferred to profit or loss on a reasonable and systematic basis over the useful lives of the related assets.

Government grants are recognized in profit or loss in the period in which they become receivable if they are intended to compensate for expenses or losses already incurred or to provide immediate financial support to the Company and have no future related costs.

(18) 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

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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.

(19)Taxation

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

1) Current tax

Current income (loss) is determined by the regulations of each jurisdiction in which the Company files income tax returns and is used to calculate the amount of tax payable (recoverable).

Income tax on undistributed earnings is recognized in the year when the shareholders' meeting is held.

Adjustments to prior years' income tax payable are included in the current period's income tax.

2) Deferred tax

Deferred tax is calculated on temporary differences between the carrying amounts of assets and liabilities and the tax bases used to compute taxable income.

Deferred tax liabilities are generally recognized for all taxable temporary differences, while deferred income tax assets are recognized to the extent that it is probable that taxable profit will be available against which the temporary differences and loss carryforwards can be utilized.

Deferred tax liabilities are recognized for taxable temporary differences associated with investments in subsidiaries and affiliates, except where the Company can control the timing of the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets are recognized for deductible temporary differences associated with such investments only to the extent that it is probable that sufficient taxable income will be available to allow the temporary differences to be realized and to the extent that reversal is expected in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable income will be available to allow all or part of the asset to be recovered. Deferred tax assets are reviewed at each balance sheet date and the carrying amount is increased to the extent that it is more likely than not that sufficient tax assets will be available to allow recovery of all or part of the assets.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the period when the liability is settled or the asset is realized, based on tax rates and tax laws that have been enacted or substantively enacted by the balance sheet date. The measurement of deferred tax liabilities and assets reflects the tax consequences of the manner in which the Company expects to recover or settle the carrying amounts of its assets and liabilities at the balance sheet date.

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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.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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 Company considers the economic impact of the COVID-19 outbreak as a significant accounting estimate, and management reviews the estimates and underlying assumptions on an ongoing basis. If a revision of an estimate affects only the current period, it is recognized in the period in which the estimate is revised; if a revision of an accounting estimate affects both the current and future periods, it is recognized in the period in which the estimate is revised and in future periods.

Key sources of estimation and assumed 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.CASH AND CASH EQUIVALENTS

ASH AND CASH EQUIVALENTS
Cash on hand, turnover Bank cheques and demand deposits Cash Equivalents (Investments with an original Expiry Date of less than 3 months) Time Deposit	31 December 2020 $ 410 340,947 - $ 341,357	31 December 2019
			$ 476 110,350 359,760 $ 470,586

The annual interest rate on cash equivalents of December 31, 2019 was 2.25%.

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

Financial assets - current Mandatory measurement at fair value through profit or loss 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 $ - 9,387 $ 9,387 $ 18,919	December 31 2019	December 31 2019	December 31 2019
					$ 3,200 8,589 $ 11,789 $ 2,462

(Note) Exchange rate swap contracts not subject to hedge accounting and outstanding at the balance sheet date were as follows:

December 31, 2020

December 31, 2020
Category Foreign exchange swap contract December 31, 2019 Category Foreign exchange swap contract	Currencies NTD to USD Currencies	Expiration Period Contract Amount (in 1,000 dollars) 2021.01.28`～` 2021.06.21 NTD 588,807/USD 20,000 Expiration Period Contract Amount (in 1,000 dollars) 2020.02.07`～` 2020.03.17 NTD 278,730/USD 9,200	Contract Amount (in 1,000 dollars)
	NTD to USD			NTD 278,730/USD 9,200

December 31, 2019

The Company engages in exchange rate swaps mainly to hedge the risk of foreign currency assets and liabilities arising from exchange rate fluctuations.

The financial assets and liabilities at fair value through profit or loss incurred valuation losses of $23,795,000 and $3,179,000 for the years ended December 31, 2020 and 2019, respectively, are included in other gains and losses in the individual individual statements of income.

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

profit or loss

Investments in equity instruments - non-current Domestic Investment Private shares of listed companies Private common shares of Chia Her Industrial Co., Ltd.	December 31, 2020 $ 56,222	December 31, 2019	December 31, 2019
			$ 51,294

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In July 2013, the Company subscribed 13,980,000 shares (2,266,000 shares after capital reduction, 2.764% shareholding) of the private placement common stock of Chia Her Industrial Co. at NT$1.43 per share, totaling NT$19,991,000. Although the aforementioned shareholding has passed the three-year lock-up period, the past profit situation of Chia Her ndustrial Co. However, the Company is still unable to complete the public offering because its past profits do not meet the requirements for listing.

The Company has invested in the private placement of common stock of Chia Her Industrial Co. for medium and long-term strategic purposes and expects to make profits from the long-term investment. The Company's management 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, and has therefore elected to designate these investments as measured at fair value through other comprehensive income.

9.Financial assets at amortized cost

Current Domestic Investment Pledged Demand Deposit Pledged Time Deposit (1) (1)Time Deposit interest rate range	December 31, 2020 $ 302,193 2,387,493 $ 2,689,686 0.07%`～`0.6%	December 31, 2019	December 31, 2019
			$ 7 2,107,666 $ 2,107,673 0.13%`～`2.5%

。
(2)For information on pledges of financial assets measured at amortized cost. (see Note 34)
(3)The Company invests only in liability instruments with low credit risk as assessed by the impairment. The 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 $ 397,203 50,103 $ 347,100	December 31, 2019
			$ 575,395 16,807 $ 558,588

The average credit period for merchandise sales is 60 days and accounts receivable are non-interest bearing. To mitigate credit risk, the Company's management assigns a dedicated team to determine credit limits, approve credit facilities and other monitoring

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procedures to ensure that appropriate actions are taken to collect overdue accounts receivable. In addition, the Company reviews the recoverable amounts of accounts receivable on a case-by-case basis at the balance sheet date to ensure that appropriate impairment losses have been recorded for uncollectible accounts receivable. Accordingly, the Company's management believes that the Company's credit risk has been significantly reduced.

The Company recognizes an allowance for losses on accounts receivable based on expected credit losses over the period of time. The expected credit loss for the duration of the period is calculated using an allowance matrix, which takes into account the customer's past default history and current financial condition. Since the Company's credit loss history shows that there is no significant difference in loss patterns among different customer groups, the allowance matrix does not further differentiate between customer groups and only uses the number of days that accounts receivable are open to determine the expected credit loss rate.

If there is evidence that the counter-party is in serious financial difficulty and the Company cannot reasonably expect to recover the amount, for example, if the counter-party is in liquidation, the Company directly eliminates the related accounts receivable, but continues to pursue recovery activities, as the amount recovered is recognized in profit or loss.

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

December 31, 2020

	Less	than 90	days	90-180 days	90-180 days	180-365 days	180-365 days	365	days above		Total
Expected credit loss rate		0%			5%		100%		100%		-
Total carrying amount	$	322,912		$	25,461	$	17,988	$	30,842	$	397,203
Allowance for losses			-	(	1,273 )	(	17,988 )	(	30,842 )	(	50,103 )
(expected credit losses
during the continuance
period)
Amortized cost	$	322,912		$	24,188	$	-	$	-	$	347,100
ecember 31, 2019
	Less	than 90	days	90-180 days		180-365 days		365	days above		Total
Expected credit loss rate		0%			2%		47%		48%		-
Total Carrying amount	$	505,220		$	36,102	$	8,111	$	25,962	$	575,395
Allowance for losses			-	(	553 )	(	3,785 )	(	12,469 )	(	16,807 )
(expected credit losses
during the continuance
period)
Amortized cost	$	505,220		$	35,549	$	4,326	$	13,493	$	558,588

December 31, 2019

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

receivable is as follows
Beginning Balance (Reversal) of impairment loss for the year Actual write-off for the year Ending Balance		2020 $ 16,807 33,378 82) $ 50,103		2019
	(		(	$ 17,483 676 ) - $ 16,807

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11.Inventory

Finished Goods Work-in-progress Raw materials	December 31, 2020 $ 922,188 268,596 180,972 $ 1,371,756	December 31, 2019	December 31, 2019
			$ 857,714 278,862 157,741 $ 1,294,317

The nature of cost of goods sold is as follows

Cost of goods sold for loss and market price decline and obsolete and slow-moving inventories Unallocated Manufacturing Costs (Note) Others		2020 $ 2,734,293 23,625 49,874 506 ) $ 2,807,286		2019
	(			$ 3,674,396 - 4,563 2,270 $ 3,681,229

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

12. Investments by using the equity method

December 31, 2020 December 31, 2019 $ 6,736,290 $ 6,917,644 111,412 - $ 6,847,702 $ 6,917,644 December 31, 2020 December 31, 2019 $ 3,393,211 $ 2,996,495 49,709 65,462 41,053 41,637 239,702 234,874 3,012,615 3,063,449 - 209,427 - 296,499 - 9,801 $ 6,736,290 $ 6,917,644 Percentage of ownership and voting rights December 31, 2020 December 31, 2019 100% 100% 100% 100% 100% 100% 55.06% 50.41% 100% 100% - 91.28% - 59.7% - 60%	December 31, 2020 December 31, 2019 $ 6,736,290 $ 6,917,644 111,412 - $ 6,847,702 $ 6,917,644 December 31, 2020 December 31, 2019 $ 3,393,211 $ 2,996,495 49,709 65,462 41,053 41,637 239,702 234,874 3,012,615 3,063,449 - 209,427 - 296,499 - 9,801 $ 6,736,290 $ 6,917,644 Percentage of ownership and voting rights December 31, 2020 December 31, 2019 100% 100% 100% 100% 100% 100% 55.06% 50.41% 100% 100% - 91.28% - 59.7% - 60%	December 31, 2019 $ 6,917,644 - $ 6,917,644 December 31, 2019
$
$


	December 31, 2020 100% 100% 100% 55.06% 100% - - -	December 31, 2019
		100% 100% 100% 50.41% 100% 91.28% 59.7% 60%

The Company increased its investment in De Licacy (Samoa) Holiday company by $320,241,000 (US$11,059,000) and $137,228,000 (US$4,440,000) in 2020 and 2019, respectively.
The Company increased its investment in View Best Global Limited (100% owned) by
28 -

$15,622,000 (US$540,000) in February 2020, mainly for the purpose of lending funds to ATAGO Vietnam (30% owned) for its operations.

In 2020, the Company acquired 4.65% of the shares of Chgdex from an unrelated party 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 value.
4 . Our company increased its investment in Delicacy Holding Company by NTD 427,638 thousand (US$13,600,000) in 2010 to indirectly invest in De Shen (Cayman) Holdings Co., Ltd and Vietnam De Licacy Industrial Co.,. As of December 31, 109, its indirect investment in Vietnam De Licacy Industrial Co., in Company was funded. Among them, 106,060 thousand U.S. dollars has been checked by the Investment Review Committee of the Ministry of Economic Affairs.
On January 14, 2020, the Board of Directors approved the purchase of 1.22% of the shares of Lucky Unique Enterprise co., Ltd from its subsidiary Tung Ming Company for $6,633,000, which increased its shareholding from 59.7% to 60.92%; on March 12, 2020, the Board of Directors approved the sale of 60% of the shares of De Kac Trading Co., Ltd. for $12,000,000; and on March 20, 2020, the Board of Directors approved the sale of 60% of the shares of Teco to Phuoc Phat Company for $12,000,000. On April 20, 2020, the board of directors approved the sale of 91.28% of the equity interest in Tung Ming to Lucky Unique Enterprise co., Ltd for $258,989,000; and on June 19, 2020, the board of directors approved the sale of 35.94% of the equity interest in Lucky Unique Enterprise co., Ltd to a non-affiliate for $195,227,000, resulting in a reduction of the shareholding to 24.98%. The transaction price was determined with reference to the valuation report of Chang Xin Asset Consulting Co., Ltd., an independent consultant of the unrelated party, on March 31, 2020. The remaining investment was recognized as investment in affiliated companies at fair value on the date of loss of control, see Note 13 and Note 32 to the Consolidated Financial Statements for 2020.
For the changes in the percentage of ownership and items of stockholders' equity resulting from various equity transactions, see Notes 12 and 33 to the Company's 2020 consolidated financial statements. For the details of the Company's indirectly held investment subsidiaries, see Note 38.

The shares of income and other comprehensive income of the subsidiaries using the equity method in 2020 and 2019 are recognized based on the audited financial statements of each subsidiary for the same periods.

(2) Investment in affiliated companies- significant afflicated companies
-December 31, 2020

Amount Lucky Unique Enterprise Co., Ltd. $ 111,412

As of December 31, 2020, the Company's percentage of hareholding and voting rights in Lucky Unique Enterprise Co. is 24.98%.

For the business nature, principal place of business and country information of the company registration of the above-mentioned related enterprises, please refer to the Schedule 7" Information of the invested company, location...and other related information".

13.Property, plant and equipment

The schedule of changes in property, plant and equipment for the years ended December 31, 2020 and 2019 is shown in Schedule 11.

Owned land includes a portion of the Company's plant (with a carrying value of $23,507,000), which is agricultural land and is temporarily registered in the name of others, but the agricultural land has been pledged to the Company.

The Company’ property, plant and equipment were assessed in 2020 and 2019, there is no indication of impairment.

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Depreciation expense is provided on a straight-line basis over the following useful lives. ：

ives.`：`
Land improvements	3 to 40 years
Buildings
Plant main buildings	20 to 55 years
Mechanical and power equipment	5 to 40 years
Engineering System	3 to 55 years
Others	2 to 25 years
Machinery	2 to 25 years
Transportation equipment	3 to 6 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 34.

14.Lease Agreement

(1)Right-of-use asset

(1)Right-of-use asset
Costs January 1 2019balance Additions December 31, 2019 balance Accumulated depreciation January 1 2019 balance Depreciation December 31, 2019balance December 31, 2019 net Costs January 1, 2020 balance Additions Decrease December 31, 2020 balance Accumulated depreciation January 1, 2020 balance Depreciation Decrease December 31, 2020 balance December 31, 2020 net (2)Lease liabilities Lease liabilities carrying amount Current Non-current Buildings Transportation Equipment		Buildings Transportation Equipment Total $ 3,084 $ 2,106 $ 5,190 24,818 - 24,818 $ 27,902 $ 2,106 $ 30,008 $ - $ - $ - 7,685 1,656 9,341 $ 7,685 $ 1,656 $ 9,341 $ 20,217 $ 450 $ 20,667 $ 27,902 $ 2,106 $ 30,008 16,662 416 17,078 3,084) ( 2,106) ( 5,190) $ 41,480 $ 416 $ 41,896 $ 7,685 $ 1,656 $ 9,341 12,808 508 13,316 1,850) ( 2,106) ( 3,956) $ 18,643 $ 58 $ 18,701 $ 22,837 $ 358 $ 23,195 December 31, 2020 December 31, 2019 $ 14,035 $ 10,183 $ 9,378 $ 10,604 $ 23,054 $ 20,334 359 453 $ 23,413 $ 20,787
	( (
			$ 10,183 $ 10,604 $ 20,334 453 $ 20,787

30 -

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

Buildings Transportation Equipment (3)Other leasing information Short-term leasing expense Total cash used in leasing	December 31, 2020 1.53%`～`1.68% 1.45% 2020 $ 1,680 ( $ 15,294 )	December 31, 2019	December 31, 2019
	(	(	1.34%`～`1.53% 1.34% 2019 $ 4,211 $ 13,724 )

The Company has elected to apply the exemption from recognition to leases of office premises and plant that qualify as short-term leases and does not recognize the related right-of-use assets and lease liabilities for these leases.

All commitments under leases with lease periods beginning after the balance sheet date are as follows.

Lease Commitment	December 31, 2020 $ 490	December 31, 2019 $ 610

15.Other Intangible Assets

For computer software licenses, the changes are as follows:

Costs Beginning balance Single acquisition Expiry Derecognition Ending balance Accumulated amortization Beginning balance Amortization fee Expiry Derecognition Ending balance Ending net		2020 $ 945 - 945) $ - $ 852 93 945) $ - $ -		2019
	( (		( (	$ 1,974 112 1,141) $ 945 $ 1,845 148 1,141) $ 852 $ 93

Amortization fee is accrued on a straight-line basis over one year of useful life for the above assets.

16.Prepayments

above assets. 16.Prepayments
Prepayment for purchases Prepayment for plating fee Others 17.Other current assets Income tax refund receivable. Input Tax Office supplies	December 31, 2020 $ 11,419 4,090 9,040 $ 24,549 December 31, 2020 $ 35,966 1,097 1,853 $ 38,916	December 31, 2019
		$ 10,251 5,837 14,840 $ 30,928 December 31, 2019
			$ 46,952 3,696 2,511 $ 53,159

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18. Loan

(1)Short-term loan

n Short-term loan
Securred loan (see Note 34) Bank loan Unsecured loan Bank loan by line of credit	December 31, 2020 $ 2,677,000 1,934,976 $ 4,611,976	December 31, 2019
			$ 843,700 1,901,405 $ 2,745,105

The annual interest rates of bank loans ranged from 0.79% to 1.41% and 0.97% to 1.50% on December 31, 2020 and 2019, respectively.

(2)Short-term notes payable

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

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

December 31, 2020

December 31, 2020
Guarantor/Acceptance Agency	Face amount $ 50,000 100,000 50,000 50,000 50,000 50,000 50,000 50,000 260,000 $ 710,000 Face amount $ 50,000 100,000 50,000 50,000 50,000 30,000 50,000 50,000 $ 430,000	Discount amount	Carrying amount	Interest rate collars(`％`)	Name of collateral	Collateral Carrying amount
Commercial Paper Payable 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 December 31, 2019 Guarantor/Acceptance Agency		$ 20 133 3 5 41 81 28 5 183 $ 499 Discount amount	$ 49,980 99,867 49,997 49,995 49,959 49,919 49,972 49,995 259,817 $ 709,501 Carrying amount	0.500 0.902 0.400 0.852 0.850 1.040 1.140 0.650 0.330 Interest rate collars(`％`)	none none none none none none none none none Name of collateral	$ - - - - - - - - - Collateral Carrying amount
Commercial Paper Payable 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.		$ 16 25 17 16 57 5 57 17 $ 210	$ 49,984 99,975 49,983 49,984 49,943 29,995 49,943 49,983 $ 429,790	0.750 0.902 0.600 0.852 0.852 1.052 0.850 0.750	none none none none none none none none	$ - - - - - - -

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(3)Long-term bank loans

ong-term bank loans
Secured Loan Bank loan 1. Syndicated Loans 2. Less: Syndicated Loans Arrangement Fee Unsecured loan Bank line of credit loans1. Less: classified as the part due within one year	December 31, 2020 $ 12,000 2,199,932 4,653 2,207,279 871,400 3,078,679 273,158 $ 2,805,521	December 31, 2019
			$ 1,128,000 2,200,000 4,614 3,323,386 408,500 3,731,886 1,168,000 $ 2,563,886

1.Bank Guarantees and Credit Loan

==> picture [401 x 220] intentionally omitted <==

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

December December
Expiry Date Significant Terms 31 2020 31 2019
Guaranteed Loans
Bank loan 2020.03.30 ～ The principal is repaid at a time when it is due. $ - $1,128,000
2020.08.12
2024.08.15 From September 2021, average amortization of 12,000 -
principal in 36 installments.
Unsecured loan
Bank line of credit 2022.01.19 ～ Since July 2017, the principal has been amortized on 240,000 100,000
loans 2025.03.20 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 2026.05.15 ～ From April 2022, the principal will be repaid in 250,000 235,000
loans 2029.07.09 average monthly installments. 。
Bank line of credit 2015.08.21 ～ The principal will be repaid in equal monthly 293,400 73,500
loans 2029.11.12 installments beginning in September 2021.
Bank line of credit 2025.10.08 The average monthly principal repayment has been 88,000 -
loans made since November 2021.
883,400 1,536,500
Less: classified as 97,158 1,168,000
the part due
within one
year
$ 786,242 $ 368,500
----- End of picture text -----

The interest rates on December 31, 2020 ans 2019 were 0.21% to 1.5% and 0.21% to 1.74%,. respectively

2. Bank Syndications signed on February 13 2019

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 and FY 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.

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Terms and Conditions

Iteam A Iteam 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%.

Financial Ratios

During the term of this contract, the Company's individual 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 ＋ Amortization)/ 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 34.

19.Notes Payable and Accounts Payable

(1) Notes Payable

es Payable and Accounts Payable Notes Payable
Notes Payable Occurrence due to business Occurrence due to nonbusiness – purchase of Property, Plant and Equipment	December 31, 2020 $ 59,983 1,222 $ 61,205	December 31, 2019
			$ 76,612 417 $ 77,029

(2)All accounts Payable for business.

(3)The combined company has a financial risk management policy to ensure that all
34 -

payables are repaid within the prearranged credit terms.

20.Other accounts payable

Other accounts payable
Payroll payable, bonus, Remuneration for Employees and Directors Payroll payable, bonus, Remuneration for Employees and Directors Utilities Payable Commission Payable Transportation fee payable Leave Payable Equipment Payable Others	December 31, 2020		December 31, 2019
		$ 36,379 25,096 13,868 8,662 7,768 3,696 924 56,000 $ 152,393		$ 49,348 40,032 21,166 14,871 10,337 6,018 734 54,875 $ 197,381

21.Deferred income

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 7 to 14 years.

Current Noncurrent	December 31, 2020 $ 7,472 $ 1,422

22.Refund Liability

efund Liability
Beginning balance Current year provision (reversal) of refund liability Ending balance		2020 $ 2,789 2,789) $ -		2019
	(			$ 2,008 781 $ 2,789

23.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 Company and its domestic subsidiaries, and contributes 6% of employees' monthly salaries to the individual accounts of the Labor Insurance Bureau.

(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

35 -

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 individual balance sheets are shown below:

shown below:
December 31, 2020 Defined benefit obligation current value $ 176,026 Plan assets at fair value ( 190,548 ) ( $ 14,522 ) Net defined benefit liabilities changes: Defined benefit obligation current value January 1, 2019 $ 249,312 Current Service Costs 2,476 Interest expense(income) 2,493 Recognized in profit or loss 4,969 Re-measurement Plan Assets remuneration (In addition to the amount included in net interest) - Actuarial losses Changes in demographic assumptions 412 Changes in financial assumptions $ 5,510 Experience Adjustment 7,999 Recognized in other comprehensive loss or income 13,921 Employer’s contribution - Benefit expenditures ( 32,888) December 31, 2019 235,314 Current Service Costs 2,028 Interest expense(income) 1,765 Recognized in profit or loss 3,793 Re-measurement Plan Assets remuneration (In addition to the amount included in net interest) - Actuarial losses(income) Changes in demographic assumptions 16 Changes in financial assumptions 4,051 Experience Adjustment ( 25,258) Recognized in other comprehensive loss or income ( 21,191) Employer’s contribution - Benefit expenditures ( 41,890) December 31, 2020 $ 176,026	December 31, 2020		( ( ( ( ( ( ( ( ( ( ( ( (	December 31, 2019 $ 235,314 ( 213,081 ) $ 22,233 Plan assets at fair value Net defined benefit liabilities (Assets) $ 224,312) $ 25,000 - 2,476 2,300) 193 2,300) 2,669 7,777 ) ( 7,777 ) - 412 $ - $ 5,510 - 7,999 7,777) 6,144 11,580) ( 11,580) 32,888 - 213,081) 22,233 - 2,028 1,642) 123 1,642) 2,151 7,198 ) ( 7,198 ) - 16 - 4,051 - ( 25,258) 7,198) ( 28,389) 10,517) ( 10,517) 41,890 - $ 190,548 ) ( $ 14,522 )
		$ 176,026 190,548 ) $ 14,522 ) Defined benefit obligation current value $ 249,312 2,476 2,493 4,969 - 412 $ 5,510 7,999 13,921 - ( 32,888) 235,314 2,028 1,765 3,793 - 16 4,051 ( 25,258) ( 21,191) - ( 41,890) $ 176,026

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

function as follows.
Operation cost Marketing Expense Management Expense R&D Expense		2020 $ 1,176 319 274 382 $ 2,151		2019
				$ 1,494 375 377 423 $ 2,669

36 -

The 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 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 present value of the Company's defined benefit obligation was actuarially determined by a qualified actuary and the significant assumptions at the measurement date were as follows.

date were as follows.
Discount rate Expected rate of salary increase	December 31, 2020 0.5% 1.5%	December 31, 2019
		0.75% 1.5%

The amounts that would increase (decrease) the present value of the defined benefit obligation if there were reasonably possible changes in significant actuarial assumptions, respectively, with all other assumptions held constant, are as follows:

Discount Rate Add: 0.1% Less: 0.1% Expected rate of salary increase Add: 0.1% Less: 0.1%	December 31, 2020 ( $ 1,637 ) $ 1,659 $ 1,616 ( $ 1,598 )	December 31, 2019	December 31, 2019
	( (	( (	$ 2,227 ) $ 2,258 $ 2,204 $ 2,178 )

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 $ 9,888 9.3 years	December 31, 2019 $ 11,758 9.4 years

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24.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.	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

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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 26-(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. 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.

The Company 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 ：

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. At the regular shareholders' meeting held on June 21, 2019, the Company resolved to allot cash dividends (NT$0.95 per share) at a premium of NT$317,837,000 for the capital surplus share issue.

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

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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 Equalities

1.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 afflicated companies Other comprehensive loss/income of the year Disposal of shares of subsidiaries accounted for using the equity method Changes in ownership interest in subsidiaries Ending Balance	( ( ( ( (	2020 $ 451,447 ) 88,840 ) 17,768 3,362 ) 74,434 ) 12,788 422 $ 512,671 )	( ( ( ( (	2019 $ 294,358 ) 192,082 ) 38,416 3,423 ) 157,089 ) - - $ 451,447 )

2.Unrealized valuation gains or losses on financial assets measured at fair value through other comprehensive income.

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2020 2019
Beginning Balance $ 49,491 $ 1,316
Current year Occurred
Unrealized gain or loss/equity
instruments 8,894 30,547
Share of subsidiaries and affiliates
accounted for under the equity method 8,109 17,628
Other comprehensive income for the year 17,003 48,175
-
Change in ownership interest in subsidiaries 1,102
Transfer of accumulated gain or loss on
disposal of equity instruments to retained
-
earnings ( 11,428 )
Ending Balance $ 56,168 $ 49,491
(6)Treasury Stocks
Shares of parent company held by
subsidiaries.(1000 shares) 2020 2019
Shares in starting period 1,218 1,137
increase (Note 1) 25 81
-
decrease (Note 2) ( 1,243 )
-
Shares in ending period 1,218
----- End of picture text -----

(6)Treasury Stocks

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 individual 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
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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 individual 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 individual 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.

25.Revenue

Sales Revenue		2020 $ 3,005,640		2019 $ 4,269,376

(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 60 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 33) Accounts Receivable (including related party)(Notes 10 and 33)	December 31 2020 $ 51,584 $ 463,994	December 31 2019 $ 64,771 $ 656,814		January 1 2019 $ 56,808 $ 506,510

(3)Revenue breakdown from customer contracts

Please refer to Schedule 15 for revenue breakdowns.

26.Net income (loss) before tax

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(1)Other income and loss, net

1)Other income and loss, net
Net income on disposal of property, plant and equipment (2)Interest income Bank deposits Capital loans and related party interest Deposit Settlement Interest (3)Other income Government Subsidy Income Rental Income Counseling fee income Handling fee income Income from sale of sample fabric Income from sale of waste materials Claims income Sale of managed assets Others (4)Other gains and losses Net income (loss) on foreign currency exchange Net loss on valuation of financial instruments at fair value through profit or loss Income (loss) on disposal of subsidiaries Other (5)Financial costs Interest on bank loans Amortization of handling fees on syndicated loans Interest on lease liabilities Interest on loans from related parties Less: Amounts included in the cost of qualifying assets (included in property, plant and equipment and prepayments for equipment)		2020 $ 6 2020 $ 32,169 8,078 33 $ 40,280 2020 $ 72,982 7,171 5,548 3,505 3,395 2,062 26 - 26,864 $ 121,553 2020 $ 195,764 ) 23,795 ) 9,154 4,704 ) $ 215,109 ) 2020 $ 101,023 1,130 406 - 469 $ 102,090		2019 $ 31,392 2019

				$ 41,725 - 35 $ 41,760 2019
				$ 940 3,344 5,451 5,674 5,877 3,439 1,163 7,375 13,662 $ 46,925 2019
	( ( ( (		( ( ( (	$ 74,408 ) 3,179 ) - 3,678 ) $ 81,265 ) 2019
				$ 90,604 3,043 292 189 799 $ 93,329

Capitalization of interest relevant information as below:

2020

2019

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Capitalization of interest amount Capitalization of interest rate Deprecation and Amortization Property, Plant and Equipment Intangible Assets Right-of-use asset Depreciation expense summary by function Operation cost Operation expense Amortization fee summary by function Operation expense Employee benefit expense Short-term employee benefits Payroll Labor and Health insurance fees Bonus to Directors Others Post-employment benefits Defined contribution plan Defined benefit plan (Note 23) Summary by function Operation cost Operation expense		$ 469 1.32%`～`1.68% 2020 $ 122,036 93 13,316 $ 135,445 $ 112,717 22,635 $ 135,352 $ 93 2020 $ 385,527 43,155 4,151 16,245 449,078 15,316 2,151 17,467 $ 466,545 $ 304,365 162,180 $ 466,545		$ 799 1.33%`～`1.85% 2019
				$ 108,915 148 9,341 $ 118,404 $ 101,690 16,566 $ 118,256 $ 148 2019
				$ 459,148 44,075 13,500 17,009 533,732 15,047 2,669 17,716 $ 551,448 $ 345,052 206,396 $ 551,448

(6) Deprecation and Amortization

(7) Employee benefit expense

(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 remuneration and director 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:

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

If there is any change in the amount after the adoption of the annual individual 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 individual 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.

(9)Foreign Exchange (loss) income

the Board of Directors of the Company. Foreign Exchange (loss) income
Total foreign exchange income Total Foreign exchange loss Net loss		2020 $ 62,327 258,091) $ 195,764 )		2019
	( (		( (	$ 29,007 103,415) $ 74,408 )

27.Income Tax

(1)Income tax recognized in profit or loss

Income tax expense (income) main items as below:

Current year income tax Current year occurred Undistributed earnings plus Adjustments to prior years Deferred income tax Current year occurred		2020 $ - - 3,950 94,848) $ 90,898 )		2019
	( (			$ 24,806 174 470 9,417 $ 34,867

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

follows:
2020 Net income (loss) before income taxes ( $ 298,184 ) Income tax expense (benefit) before income taxes (net loss) at statutory tax rate ( $ 59,637 ) Non-deductible expenses and losses for tax purposes 141 Non-additive income for tax purposes ( 16,402 ) Unrecognized temporary differences ( 18,950 ) Additions to undistributed earnings - Adjustments to current income tax expense in prior years 3,950 ( $ 90,898 ) Income tax recognized in other comprehensive income 2020 Deferred tax In respect of the current year conversion of foreign operating institutions $ 17,768 Re-measurement of defined benefit plan ( 5,678 ) $ 12,090 Deferred tax assets and liabilities December 31, 2020 Tax refund receivable (included in other current assets) $ 4,573 Income taxes payable $ 2,557	( (	2019 $ 592,888 $ 118,578 106 15,119 ) 69,342 ) 174 470 $ 34,867 2019
	$ 38,416 1,229 $ 39,645 December 31, 2019 $ 1,586 $ -

(2)Income tax recognized in other comprehensive income

(3)Deferred 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 Ending
Deferred tax assets Balance profit or loss e Income Balance
Temporary differences
Gross profit on unrealized sales $ 32,625 ( $ 2,162 ) $ - $ 30,463
Allowance for decline in value of inventories 12,168 9,940 - 22,108
and doubtful losses
Leave payables 1,204 ( 465 ) - 739
Net defined benefit liabilities 4,446 1,232 ( 5,678 ) -
-
Unrealized exchange losses 9,054 25,119 34,173
-
Exchange differences from foreign operations 77,569 17,768 95,337
Allowance for doubtful accounts 1,885 7,004 - 8,889
Unallocated fixed manufacturing costs 227 2,913 - 3,140
Other 423 2,446 - 2,869
139,601 46,027 12,090 197,718
Loss Credit - 49,695 - 49,695
$ 139,601 $ 95,722 $ 12,090 $ 247,413
Deferred tax liabilities
Temporary differences
Property, Plant and Equipment $ 35,949 ( $ 2,030 ) $ - $ 33,919
Net defined benefit assets - 2,904 - 2,904
$ 35,949 $ 874 $ - $ 36,823
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2019

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

Recognized in
Other
Beginning Recognized in Comprehensiv Ending
Deferred tax assets Balance profit or loss e Income Balance
Temporary differences
Gross profit on unrealized sales $ 33,651 ( $ 1,026 ) $ - $ 32,625
Allowance for decline in value of inventories 12,521 ( 353 ) - 12,168
and doubtful losses
-
Leave payables 1,746 ( 542 ) 1,204
Net defined benefit liabilities 5,000 ( 1,783 ) 1,229 4,446
- -
Unrealized exchange losses 9,054 9,054
-
Exchange differences on foreign operations 39,153 38,416 77,569
- -
Losses on foreign investments 22,979 ( 22,979 )
Other 3,280 ( 745 ) - 2,535
$ 118,330 ( $ 18,374 ) $ 39,645 $ 139,601
Deferred income tax liabilities
Temporary differences
Property, Plant and Equipment $ 38,036 ( $ 2,087 ) $ - $ 35,949
- -
unrealized exchange gain 6,870 ( 6,870 )
$ 44,906 ( $ 8,957 ) $ - $ 35,949
----- End of picture text -----

(5)The amount of deductible temporary differences and unused loss credit for deferred income tax assets were not recognized in the consolidated balance sheet.

Loss creidt Expire in 2030 Deduct temporary differences Allowance for loss of market price decline and slow-moving inventories Refund liabilities	December 31, 2020 $ 248,473 $ - - $ -	December 31, 2019	December 31, 2019
			$ - $ 26,074 1,673 $ 27,747

(6)Summary of temporary differences associated with investments and not recognized as deferred income tax liabilities amount.

For the years ended December 31, 2020 and 2019, the taxable temporary differences related to investment in subsidiaries not recognized as deferred income tax liabilities amounted to $1,898,201,000 and $1,806,173,000, respectively.

(7)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.

28.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)	(	2020 $ 207,286 )		2019 $ 558,021

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Shares
Weighted average number of shares outstanding Weighted-average number of shares in treasury stock - Parent company shares held by subsidiaries Weighted-average number of shares of common stock used in the basic earnings per share calculation Effect of dilutive potential common stock. Employee remuneration Weighted-average number of shares of common stock used in the calculation of diluted earnings per share		2020 384,566 642 ) 383,924 - 383,924	Unit: 1,000 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.

29.Disposal of Investment Subsidiary - Loss of Control

On June 19, 2020, the Company's board of directors approved the sale of Lucky Unique Enterprise Co., Ltd. to an unrelated party for $195,227,000 ($13.7 per share, net of securities transaction tax of $587,000), and the closing of the equity transfer was completed on July 8, 2020; therefore, the Company lost control over Lucky Unique Enterprise Co., Ltd.. Please refer to Note 32 of the Company's 2020 Consolidated Financial Statements for a description of the disposal of Lucky Unique Enterprise Co., Ltd..

30.Non-cash transactions

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

(1)Acquisition of property, plant and equipment

cquisition of property, plant and equipment
Investing activities affecting both cash and non-cash items Increase in property, plant and equipment Decrease (increase) in payables for equipment and notes payable Cash paid for property, plant and equipment		2020 $ 47,929 995 ) $ 46,934		2019
	(			$ 111,330 12,397 $ 123,727

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(2)Disposal of Property, Plant and Equipment

Disposal of Property, Plant and Equipment
Investing activities affecting both cash and non-cash itemsf Proceeds from disposal of property, plant and equipment Decrease (increase) in other receivables (including related parties) Cash received from property, plant and equipment		2020 $ 1,536 7,878 $ 9,414		2019
			(	$ 32,148 5,778) $ 26,370

31.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.

32.Financial Instruments

一
( )Fair value information - financial instruments measured at fair value on a recurring basis 1.Levels of Faire Value

December 31, 2020

.Levels of Faire Value December 31, 2020
Financial assets at fair value through profit or loss Fund beneficiary certificates Financial assets at fair value through other comprehensive income or loss-non-current Investment in equity instruments -Private placement of stocks in domestic listed companies Financial liabilities at fair value through profit or loss Derivatives - Exchange Rate Swap Contracts	The 1st level $ 9,387 $ - $ -	The 2nd level $ - $ 56,222 $ 18,919	The 3rd level $ - $ - $ -	Total
				$ 9,387 $ 56,222 $ 18,919

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December 31, 2019

December 31, 2019
Financial assets at fair value through profit or loss Domestic Listed Stocks Fund Beneficiary Certificates Financial assets at fair value through other comprehensive income or loss-non-current Investment in equity instruments -Private placement of stocks in domestic listed companies Financial liabilities at fair value through profit or loss Derivatives - Exchange Rate Swap Contracts		The 1st level $ 3,200 8,589 $ 11,789 $ - $ -		The 2nd level $ - - $ - $ 51,294 $ 2,462		The 3rd level $ - - $ - $ - $ -		Total
								$ 3,200 8,589 $ 11,789 $ 51,294 $ 2,462

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

2.Level 2 fair value valuation techniques and inputs

Type of financial Instruments Derivatives - Foreign Exchange Rate Swap Contracts

Domestic Listed companies private placement of shares

Valuation techniques and inputs

The discounted cash flow method: The future cash flows 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.

Evaluated by the B-S option pricing model, based on the underlying price, option performance price, risk-free interest rate, historical volatility of the underlying and the maturity period.

( `二` )Type of financial Instruments

ype of financial Instruments
Financial assets Mandatory measurement of financial assets at fair value through profit or loss Financial assets measured at amortized cost (Note 1) Financial assets at fair value through other comprehensive income or loss Financial liabilities Financial liabilities at fair value through profit or loss / held for trading At amortized cost (Note 2)	December 31, 2020 $ 9,387 4,130,871 56,222 18,919 8,843,588	December 31, 2019
		$ 11,789 3,547,009 51,294 2,462 7,452,823

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

49 -

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.

( `三` )Financial Risk Management Objectives and Policies

The Company's major financial instruments include investments in equity and debt instruments, receivables, payables, lease liabilities and borrowings. The 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 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 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 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 Company does not trade in financial instruments (including derivative financial instruments) for speculative purposes.

1. Market risk

The main financial risks to which The 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 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 Company's exposure to market risk of financial instruments and its management and measurement of such exposure.

(1) Exchange rate risk

The Company engages in foreign currency-denominated sales and import transactions and foreign currency borrowings, which expose The Company to exchange rate risk. The carrying amounts of The 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 37.

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Sensitivity Analysis

The Company is primarily affected by fluctuations in the U.S. dollar exchange rate.

The following Schedule details the sensitivity analysis of The 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.

Loss/income	2020 $ 36,535	2019
		$ 30,890

This was mainly due to the 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 Company's sensitivity to foreign exchange rates during the year was mainly due to the increase in the Company's net assets denominated in U.S. dollars.

(2)Interest rate risk

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

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

follows:
Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Financial liabilities Sensitivity Analysis	December 31, 2020 $ 3,233,654 2,932,914 224,067 5,490,655	December 31, 2019
		$ 2,467,433 2,650,577 64,439 4,276,991

As 1% increase in interest rates would decrease the Company's income before income taxes by $52,666,000 and $42,126,000 for 2020 and 2019, respectively, with all other variables held constant.

The Company's sensitivity to interest rates increased during the year mainly due to the increase in variable rate debt instruments.

(3) Other price risk

The Company's equity price risk arising from its investment in

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domestic listed stocks is not material.

2.Credit Risk

Credit risk refers to the risk of financial loss resulting from the default of the counter-parties to the contracts. As of the balance sheet date, the Company's maximum exposure to credit risk, which may result from the counter-parties' default on their obligations and the Company's provision of financial guarantees, is mainly due to :

(1) The carrying amount of financial assets recognized in the individual balance sheets.
(2) The maximum amount that the Company may be required to pay as a result of providing financial guarantees, regardless of the likelihood of occurrence.

The Company's counter-parties are all creditworthy organizations and are not expected to have significant credit risk. The Company also evaluates the financial position of its accounts receivable customers on an ongoing basis.

Total accounts receivable with significant concentrations of credit risk are as follows:

are as follows:
SINTEX INTERNATIONAL LTD. PT. PRIMA LTD. SHANTA INDUSTRIES LTD.	December 31,	2020 ratio 35.63% 7.42% 1.31% 44.36%	December 31,	2019
	Amount $ 141,518 29,464 5,205 $ 176,187		Amount $ 120,300 21,132 77,829 $ 219,261	ratio
				20.91% 3.67% 13.53% 38.11%

3.Liquidity Risk

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

The Company's working capital and banking facilities obtained are sufficient to meet future operating requirements and therefore there is no liquidity risk that the Company will not be able to raise funds to meet its 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 the financial liabilities based on the earliest possible date on which the Company could be required to make repayment. Accordingly, the Company's bank loans that are repayable on demand are listed in the table below at the earliest possible date, regardless of 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.

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December 31, 2020

December 31, 2020
Non-derivative financial liabilities Non-interest-bearing liabilities Lease liabilities Floating rate instruments Fixed rate instruments Financial guarantee liabilities		Less than 6 months $ 440,845 7,145 4,671,722 728,140 1,209,350 $ 7,057,202	6 months to 1 year $ - 7,145 71,777 194,140 - $ 273,062	1 to 9 years
				$ 2,587 9,453 843,004 2,091,584 376,648 $ 3,323,276

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

follows:
Lease liabilities December 31, 2019 Non-derivative financial liabilities Non-interest-bearing liabilities Lease liabilities Floating rate instruments Fixed rate instruments Financial guarantee liabilities		Less than 1 year 1`～`3 years $ 14,290 $ 9,453 Less than 6 months 6 months to 1 year 1 to 9 years $ 547,410 $ - $ 1,421 5,433 4,979 10,698 3,478,166 474,460 408,201 449,726 19,726 2,267,713 1,488,714 73,116 810,210 $ 5,969,449 $ 572,281 $ 3,498,243
			$ 1,421 10,698 408,201 2,267,713 810,210 $ 3,498,243

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

==> picture [347 x 25] intentionally omitted <==

The floating rate instrumentamount of the above non-derivative financial assets and liabilities will be different from the interest rate estimated at the balance sheet date due to the floating rate.

(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 amounts payable or receivable are not fixed, the disclosed Amounts are determined based on the projected interest rates derived from the yield rate curve at the balance sheet date.

53 -

December 31, 2020

1to 3 months 4 to 6 months Total Total Settlement Exchange rate swap contracts Flow-in $ 116,872 $ 453,016 $ 569,888 Flow-out ( 120,805 ) ( 468,002 ) ( 588,807 ) Total Settlement ( $ 3,933 ) ( $ 14,986 ) ( $ 18,919 ) December 31, 2019 1 to 3 months Total Settlement Exchange rate swap contracts Flow-in $ 276,268 Flow-out ( 278,730 ) ( $ 2,462 )

33.Related Parties’ Transactions

Except as disclosed in other notes, the transactions between the Company and its related parties are as follows.

(1)Names of related parties and their relationships

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Name of Related Party Relationship with the Company
BEST ALLIANCE INTERNATIONAL LIMITED Subsidiary
----- End of picture text -----

Name of Related Party BEST ALLIANCE INTERNATIONAL LIMITED	Relationship with the Company Subsidiary
`DE LICACY (SAMOA) HOLDINGS CO., LTD.`.	Subsidiary
View Best Global Limited	Subsidiary
Total Express Ltd.	Subsidiary
CHADTEX INDUSTRIAL CO., LTD	Subsidiary
Hangzhou De Licacy Company	Subsidiary
DE-FA INTERNATIONAL INDUSTRIAL CO., LTD.	Subsidiary
EDEN ROAD INTERNATIONAL LTD.	Subsidiary
DE SHEN (CAYMAN) HOLDINGS CO., LTD.	Subsidiary
New Lake Ltd.	Subsidiary
Vietnam De LicacyIndustrialCompany	Subsidiary
Futures co., Ltd	Subsidiary
Bright Wisdom Ltd.	Subsidiary
De Licacy Holdings Co.	Subsidiary
De Hong Company	Subsidiary
De Hong(Vietnam)Company	Subsidiary
BEAUTY PLUS VENTURES LIMITED	Subsidiary
Lucky Unique Enterprise Company	Affliated company (Note 1)
Tung MingTEXTILE CO.,`LTD`	Subsidiary of affiliated company Lucky Unique Enterprise
	(Note 1)
E TEXTILE CO., LTD.	Subsidiary of affiliated company Lucky Unique Enterprise
	(Note 1)
De Kao Trading Co., Ltd.	Subsidiary of affiliated company Lucky Unique Enterprise
	(Note 1)
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)
Fuson International Co., Ltd.	The Chairman is a director of the Company
Jei Jom Enterprise Co. Ltd	The Chairman is a director of the Company
Sheng-Bo Technology Corp.	The Chairman is a director of the Company
DNG Energy Inc.	The Chairman is the same person.

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.

54 -

(2)Operation Income

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Item Type of related party 2020 2019
Sales income Subsidiary $ 205,487 $ 330,681
Afflicated comapny(Note 1) 293,918 64,007
Subsidiary of affiliated company Lucky 30,505 31,145
Unique Enterprise (Note 1)
Subsidiary of Joint venture New Premium 2,454 278
Enterprise Co.,Ltd
$ 532,364 $ 426,111
----- End of picture text -----

The prices of sales to related parties are comparable to those of sales to non-related parties, and the terms of collection are 60 days after the end of the month, which are not materially different from those of non-related parties.

(3)Purchase

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

Type of Related Party/Name 2020 2019
Subsidiary
New Lake Ltd. $ 451,073 $ 512,880
CHADTEX INDUSTRIAL CO., LTD 108,303 274,183
Other - 33
Afflicated company (Note 1) 138,775 177,777
Subsidiary of affiliated company
Lucky Unique Enterprise (Note 1) 16,431 36,909
Subsidiary of joint venture New
Premium Enterprise Co.,Ltd 20,034 20,027
$ 734,616 $ 1,021,809
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The Company does not have comparable purchase prices for similar products from related parties, and the payment period is approximately one month for related parties and one to three months for non-related parties.

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

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

2020 2019
Item Type of Related Party/Name December 31 December 31
Notes receivable Afflicated company (Note 1)/Lucky Unique $ 21,394 $ 17,670
----- End of picture text -----

Enterprise Company Subsidiary of affiliated company Lucky Unique Enterprise (Note 1) Subsidiary Accounts Receivable Afflicated company (Note 1)/Lucky Unique Enterprise Company Subsidiary/New Lake Ltd. Subsidiary/Other Subsidiary of affiliated company Lucky Unique Enterprise (Note 1) Subsidiary of joint ventureNew Premium Enterprise Co.,Ltd Other receivable Subsidiary/Hangzhou De Licacy Company Subsidiary/Other Afflicated company (Note 1) Subsidiary of affiliated company Lucky Unique Enterprise (Note 1) Subsidiary of joint ventureEraNew Premium Enterprise Co.,Ltd The Special Assistant to the Chairman of the Company is a director of the Company. (Note 2)	3,357 401 25,152 85,961 13,947 9,063 7,923 - 116,894 - 10,476 1,568 34 - 866	5,583 315 23,568 1,490 69,932 20,797 5,883 124 98,226 136,562 2,172 - 34 317 185

55 -

12,944 139,270 $ 154,990 $ 261,064

No guarantees have been received for amounts due from related parties in circulation, and no allowance for losses has been provided for amounts due from related parties in 2020 and 2019.

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

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

2020 2019
Item Type of Related Party/Name December 31 December 31
Notes Payable Afflicated company (Note 1)/Lucky Unique $ 22,197 $ -
Enterprise Company
Subsidiary of a related company Lucky 10,009 26,092
Unique Enterprise Company (Note
1)/Tung Ming Company
32,206 26,092
-
Accounts Payable Subsidiary/New Lake Ltd. 43,685
Subsidiary of affiliated company Lucky 29,156 28,819
Unique Enterprise (Note 1)/ Tung Ming
Company
Afflicated company (Note 1) 8,134 12,117
Subsidiary/ Chadtex Indutrial Co.,Ltd 2,896 52,573
Subsidiary of joint venture New Premium - 9,753
Enterprise Co.,Ltd
83,871 103,262
Other Payables Chadtex Indutrial Co.,Ltd 16,098 25,616
Subsidiary of affiliated company Lucky 118 49
Unique Enterprise (Note 1)
The Chairman of the Company is a director - 43
of the Company
The Special Assistant to the Chairman of the 305 305
Company is a director of the Company.
16,521 26,013
$ 132,598 $ 155,367
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The outstanding balance due to related parties is unsecured and will be settled in cash.

(6)Prepayments

Type of Related Party/Name Subsidiary/`Chadtex Indutrial`Co.,Ltd	December 31, 2020 $ 1,478

(7)Acquisition of property, plant and equipment

The Company purchased property, plant and equipment from Eden Road Company in 2019 for $64,088,000.

(8)Disposal of Property, Plant and Equipment

The Company sold property, plant and equipment to Subsidiary in 2020 for $1,476,000 and generated a gain on disposal of property, plant and equipment of $12,000. The Company sold property, plant and equipment to Ju Heng Holdings Co., Ltd.for $60,000 and $648,000 in 2020 and 2019, respectively, and generated a gain on disposal of property, plant and equipment of $3,000 and $42,000, respectively.

56 -

(9)Operating Lease- for rent

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Type of Related Party/Name Rent Objective Leasing Period
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Type of Related Party/Name	Rent Objective	Leasing Period
Afflicated company (Note 1)/Lucky	Office	July 2020 to March 2023
Unique Enterprise Company
Subsidiary/DE-FA	Office	April 2016 to March 2019;
INTERNATIONAL		April 2019 to March 2022
INDUSTRIAL CO., LTD.
ubsidiary/ Futures co., Ltd	Office	May 2020 to March 2022
Subsidiary of afflicated	Office	May 2020 to June 2021
comapnyLucky Unique
Enterprise Company
The Chairman is the same person.	Office	April 2020 to February 2021
The Chairman is the same person.	Plant Roof	October 2017 to October 2037
	(Note 3)
The Chairman of the Company is a	Plant Roof	October 2017 to October 2037
director of the Company	(Note 3)

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:

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Type of Related Party/Name 2020 2019
Afflicated company (Note 1)/Lucky
Unique Enterprise Company $ 10,257 $ -
Subsidiary/DE-FA
INTERNATIONAL INDUSTRIAL
CO., LTD. 3,661 6,590
-
ubsidiary/ Futures co., Ltd 1,033
Subsidiary of affiliated company
Lucky Unique Enterprise (Note 1) 165 -
The Chairman is the same person. 52 -
$ 15,168 $ 6,590
Summary of leasing revenue as below:
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Type of Related Party/Name Subsidiary/DE-FA INTERNATIONAL INDUSTRIAL CO., LTD. Subsidiary/Futures co., Ltd Afflicated company (Note 1) Subsidiary of afflicated company Lucky Unique Enterprise Company (Note 1) The Chairman is the same person. The Chairman of the Company is a director of the Company		2020 $ 2,929 551 2,429 480 359 366 $ 7,114		2019
				$ 2,929 - - - 86 329 $ 3,344

57 -

(10)Loans to related party

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Type of Related Party/Name December 31, 2020 December 31, 2019
Other Receivables
Subsidiary
VIETNAM DE LICACY INDUSTRIAL CO., LTD $ 341,760 $ -
-
Total Express Ltd. 128,160
Best Allance International Limited 74,048 -
-
De Shen Cayman Company 74,950
$ 543,968 $ 74,950
Interest Income
Subsidiary
VIETNAM DE LICACY INDUSTRIAL CO., LTD (1) $ 6,589 $ -
Total Express Ltd (2) . 944 -
Best Allance International Limited 545 -
(2)
$ 8,078 $ -
Interest rate (1) 2.8% -
Interest rate (2) 1.8% -
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(11)Endorsement and Guarantee for Others

For the amount of guarantee provided by the Company for related parties, see Schedule 2.

(12)Other related party transactions

1. Processing fees

The Company pays processing fees to related parties, which are recorded as operating costs depending on the nature of the payment.

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Type of related party 2020 2019
Subsidiary of affiliated company
Lucky Unique Enterprise (Note 1) $ 200,882 $ 238,536
Subsidiary 13,050 23,793
-
Afflicated company (Note 1) 2,678
$ 216,610 $ 262,329
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2. Manufacturing and operating expenses

The Company's expenses for purchasing samples from related parties, renting sample display rooms, dyeing and finishing factory lines and plants, paying commissions, and purchasing gifts were as follows:

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Type of Related Party/Name 2020 2019
Subsidiary/ Chadtex company $ 89,579 $ 135,113
-
Subsidiary/Other 7,905
Afflicated company (Note 1) 35 104
Subsidiary of affiliated company
Lucky Unique Enterprise (Note
1) 1,353 1,213
The Chairman of the Company is
a director of the Company 348 1,127
$ 91,315 $ 145,462
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3. Other income

58 -

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/Name 2020 2019
Subsidiary $ 7,100 $ 7,689
-
Afflicated company (Note 1) 1,364
Subsidiary of affiliated company
Lucky Unique Enterprise (Note 1) - 66
Subsidiary of joint venture New
Premium Enterprise Co.,Ltd 2,348 4,151
The Special Assistant to the
Chairman of the Company is a
director of the Company. (Note 2) 699 5,983
$ 11,511 $ 17,889
(13)Remuneration to Key Management Personnel
2020 2019
Short-term employee benefits $ 16,483 $ 26,238
Retirement beneifts 259 216
$ 16,742 $ 26,454
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(13)Remuneration to Key Management Personnel

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.

34.Pledged assets

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

bank loans:
Land Buildings Machinery Pledged bank deposits (recorded as financial assets carried at amortized cost - current)	December 31, 2020 $ 266,446 138,997 16,766 2,689,686 $ 3,111,895	December 31, 2019
			$ 266,446 149,665 - 2,107,673 $ 2,523,784

35.Significant Contingent Liabilities and Unrecognized Contractual Commitments

The Company's significant commitments and contingencies as of the balance sheet date are as follows.

(1) As of December 31, 2020 and December 31, 2019, the Company had unused letters of credit balance of $61,717,000 and $10,899,000, respectively, for the purchase of raw materials.
(2) The Company's unrecognized contractual commitments are as follows.

Purchase of property, plant and equipment	December 31, 2020 $ 12,802	December 31, 2019 $ 14,514

(3)For the years ended December 31, 2020 and 2019, the Company provided $310,500,000 and $359,015,000, respectively, in guaranteed notes for the purchase of raw materials and to provide guarantees for borrowing lines from financial institutions.
59 -

36.Other matters

The Company was affected by the global pandemic of COVID-19, resulting in a significant decrease in operating revenue in 2020. In response to the impact of the epidemic, the Company has applied for salary and working capital subsidies from the government and received $69,554,000 in subsidies (see Note 26).

37.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

December 31, 2020
Foreign Currency Assets Currency USD Foreign Currency Liabilities s Currency USD December 31, 2019 Foreign Currency Assets Currency USD Foreign Currency Liabilities Currency USD	Foreign Currency $ 130,325 2,043 Foreign Currency $ 104,835 1,799	Foreign Exchange Rate 28.48 (USD: NTD) 28.48 (USD: NTD) Foreign Exchange Rate 29.98 (USD: NTD) 29.98 (USD: NTD)	Carrying Amount
			$ 3,711,644 58,187 Carrying Amount
			$ 3,142,968 53,947

Foreign currency exchange gains and losses (realized and unrealized) with significant effect are as follows:

Currency USD	2020		Net FX loss $ 195,764	2019
	Fx rate 29.549(USD: NTD)			Fx rate 30.912(USD: NTD)		Net FX loss $ 74,408

38.Note Disclosure

Information on significant transactions.
(1) Loan of funds to others: Schedule 1 (attached)
(2) Endorsement and guarantee for others: Schedule 2 (attached)
(3) Year-end Marketable Securities Breakdown Statement : Schedule 3 (attached)
(4) Cumulative purchase or sale of markeSchedule securities amounting to at least
60 -

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).
(9) Derivative transactions: Please refer to Note 7.
Information about the investment business: Schedule 7 (attached)
Information on investment in China.
(1) Name of the investee company in, main business items, paid-in capital, investment method, capital remittance, shareholding, investment gain or loss, closing balance of investment, repatriated investment gain or loss, and investment limit in China: Schedule 8 (attached).
(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.
1) The balance and percentages of import amounts and related payables at the end of the period: Schedule 9 (attached).
2) Amounts and percentages of sales and related Receivables: Schedule 9 (attached).
3) Amount of property transactions and the amount of resulting gain or loss: None.
4) End-of-period 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).
6) Other transactions that have a significant effect on current income or financial position, such as the provision or receipt of labor services: None.
Information on major shareholders: Name, amount and percentage of shares held by shareholders with at least 5% ownership: Schedule 10 (attached).
61 -

De Licacy Industrial Co., Ltd. and Subdidiary

Loan of funds to others.

For the year end 31 December of 2020

Schedule 1

(In thousands of New Taiwan Dollars)

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Reasons of short-term Collateral The limit for
Highest Interest Business financing funds individual Capital Loan
No. Loan Funded Companies Loan recipients Current Accounts Is a related balance for the Closing Actual rate Natures of funding and transactions(No Allowance for bad funds and Total
party balance expenditures loan debts N a m e Va l u e
period collars( ％ ) te 4) lending(Not Limit(Note 2)
e 1)
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 De Shen (Cayman) Holdings Other Receivables Y 78,570 76,896 - - Short-term financing - Operating revolving - none -
Co., Ltd. fund 1,411,295 1,881,727
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 De Yi Company Temporary payments Y 111,833 - - - Short-term financing - Operating revolving - none - 8,391 8,391
fund (Note3) (Note3)
4 Total Express Ltd. Apex Textile Co., Ltd Accounts Receivable Y 180,141 - - 1.8 ～ 2.34 Business transactions 857,530 - none - 876,315 882,576
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 payments Y 234,795 109,425 109,120 5.1 Short-term financing - Operating revolving - none - 534,738 712,985
(Note5) fund
Hangzhou e Licacy Company Apex Textile Co., Ltd Temporary payments Y 153,195 153,195 109,120 4.15 Short-term financing - Operating revolving - none - 534,738 712,985
(Note5) fund
9 Apex Textile Co., Ltd Apex (Anqing) Textile Co., Ltd Accounts Receivable Y 87,540 87,540 61,544 5.1 Short-term financing - Operating revolving - none - 109,109 145,478
(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 payments Y 68,352 68,352 68,352 - Short-term financing - Operating revolving - none - 702,472 936,629
Limited fund
Best Alliance International Hong Kong Eden Road Compan Temporary payments Y 69,840 68,352 68,352 - Short-term financing - Operating revolving - none - 702,472 936,629
Limited 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 Subdidiary

Endorsement and guarantee for others

FOR THE YEAR ENDED DECEMBER 31, 2020

Schedule 2

(In thousands of New Taiwan Dollars)

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Amount of Ratio of cumulative Highest endorsement Parent Subsidairy's Endorsement
Endorsement/Guaran Endorsed/Guarantees Limit of endorsement Highest Endorsement Ending endorsement Actual expenditure endorsement guarantee endorsement guarantee to guarantee (Note 2) company's endorsement guarantee to
tor guarantee for a single Balance guarantee balance by assets guarantee net of the most recent endorsement of the parent China
No. Name of Company Name of Company Limit of endorsement guarantee for a enterprise (Note 1) financial statements (%) to Subsidairy company
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 shareholdings 2,352,159 938,345 902,120 392,329 - 19.18 7,056,476 Y N N
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
shareholdings100%)
Co., Ltd.
The Company Apex Textile Co., Ltd Subsidairy (Indirect shareholdings 2,352,159 207,383 207,383 137,508 - 4.41 7,056,476 Y N Y
53.22%)
The Company Hangzhou De Licacy Company Subsidairy (Indirect shareholdings 2,352,159 575,510 320,750 33,480 - 6.82 7,056,476 Y N Y
100%)
The Company De Kao Company Subsidairy of the affliate company 2,352,159 10,000 - - - - 7,056,476 N N N
Lucky Unique Enterprise
Company (Subsidairy of the
Company by July 8, 2020)
(Indirect shareholdings 14.99%)
The Company An ChinDe Fa Company 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 Hong Kong Eden Road Company Subsidairy (Indirect 2,352,159 174,600 170,880 - - 2.42 7,056,476 Y N N
shareholdings100%)
1 Apex Textile Co., Hangzhou De Licacy Company Affiliate Company (Parent company 181,848 129,150 - - - - 363,695 N N Y
Indirect shareholdings100%) (Note3)
Ltd
----- End of picture text -----

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

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

Cumulative purchase or sale of 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
Seller/Buyer markeSchedule securities Line Item Trading Partners Relationship share/unit Amount share/unit Amount share/unit Amount B o o k c o s t Disposal(loss)income share/unit Amount
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
----- End of picture text -----

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.

De Licacy Industrial Co., Ltd. and Subsidairies

Purchase from or sale to 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 Notes and accounts receivable
Transactions
are different from general transactions (payable)
Buying/selling company Trading Partners Relationship Percentage of Percentage of total Note
Unit Price Credit
Purchase /Sell Amount total purchase Credit Period Balance receivable
(Note 1) Period
(sales) (%) (payable)( ％ )
The Company Chadtex Company Subsidairy $ 121,353 7 Open Account 30 unapplicable General open account 30-90 days ( $ 2,895 ) 1
Purchase
days
The Company Tung Ming Company Note 2 127,247 7 Open Account 30-90 〞 General open account 30-90 days - -
Purchase
days
The Company New Lake Ltd. Subsidairy ( 123,106 ) 4 Open Account 30-60 〞 General open account 30-60 days 13,947 3
(Sales)
days
The Company New Lake Ltd. Subsidairy 451,073 25 Open Account 30-90 〞 General open account 30-90 days ( 43,685 ) 16
Purchase
days
〞
Eden Road Company Thousand Well International Affiliate Company 178,950 86 Open Account 90 No general suppliers available for - -
Limted Purchase days comparison
〞
Hong Kong Eden Road Thousand Well International Affiliate Company 153,651 52 Open Account 90 No general suppliers available for - -
Company Limted Purchase days comparison
Hong Kong Eden Road Thousand Well (Samoa) Affiliate Company 105,665 35 Open Account 90 〞 No general suppliers available for ( 67,647 ) 73
Company International Limted Purchase days comparison
〞
Hangzhou De Licacy Thousand Well International Affiliate Company ( 332,601 ) 19 Open Account 90 General open account 30-90 days - -
Company Limted (Sales) days
Hangzhou De Licacy Thousand Well (Samoa) Affiliate Company ( 105,665 ) 6 Open Account 90 〞 General open account 30-90 days 5,935 1
Company International Limted (Sales) days
Apex Textile Co., Ltd Total Express Ltd. Affiliate Company ( 915,988 ) 65 Open Account 90 〞 General open account 30-90 days 45,499 16
(Sales)
days
Apex Textile Co., Ltd Apex (Anqing) Textile Co., Ltd Affiliate Company ( 100,262 ) 7 Open Account 90 〞 General open account 30-90 days 86,811 31
(Sales)
days
Apex Textile Co., Ltd Apex (Anqing) Textile Co., Ltd Affiliate Company 192,039 18 Open Account 90 〞 General open account 30-120 days ( 33,223 ) 14
Purchase
days
New Lake Ltd. Vietnam De Licacy Company Affiliate Company ( 627,275 ) 30 Open Account 90 〞 General open account 30-60 days 520,823 67
(Sales)
days
New Lake Ltd. Vietnam De Licacy Company Affiliate Company 905,378 47 Open Account 120 〞 General open account 30 days ( 285,483 ) 78
Purchase
days
----- End of picture text -----

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.

De Licacy Industrial Co., Ltd. and Subsidairies

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

Schedule 6

(In thousands of New Taiwan Dollars)

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

Accounts receivable Overdue amounts due from related parties Amounts due from related Allowance for
companies Name of trading Partners Relationship with the dealer Balance of receivables from T u r n o v e r ( ％ ) Amount Methodology parties recovered in the losses
r e l a t e d p a r t i e s period
The Company Vietnam De Subsidairy $ 348,276 (Note1) $ - － $ 2,156 $ -
LicacyCompany
The Company Total Express Ltd. Subsidairy 129,089 (Note2) - － - -
Lucky Apex Ventures Apex (Anqing) Textile Co., Ltd Subsidairy 121,154 (Note2) - － - -
Limited
De Shen (Cayman) Vietnam De Subsidairy 226,105 (Note3) - － - -
Holdings Co., Ltd. LicacyCompany
New Lake Ltd. Vietnam De Affiliate Company 546,860 1.00 - － 136,847 -
LicacyCompany (Note4)
Vietnam De New Lake Ltd. Affiliate Company 285,483 3.08 - － 52,034 -
LicacyCompany
Hangzhou De Licacy Apex Textile Co., Ltd Affiliate Company 424,518 0.33 - － - -
Company (Note5)
De LicacySamoa Vietnam De Affiliate Company 116,440 (Note2) - － 58,240 -
Company LicacyCompany
Apex Textile Co., Ltd Apex (Anqing) Textile Co., Ltd Affiliate Company 163,583 2.08 - － 54,542 -
(Note6)
----- End of picture text -----

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.

Stock Number ： 1464

De Licacy Industrial Co., Ltd.and Subsidiaries

Derivative transactions

FOR THE YEAR ENDED DECEMBER 31, 2020

Schedule 7

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

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

Original Investment Held at period-end Investee company Recognized
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 Investment (loss) Note
income
(Note 1)
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 of
various fiber textile products the Company prior to July 8,
2020)/unrealized gain or loss on
sales difference.
The Company De Fa Company Taiwan General Import and Export Trade 59,878 59,878 5,500,000 100 49,709 ( 15,763 ) ( 15,753 ) Recognized difference of
inter-group lease gains or losses.
The Company Chadtex Company Taiwan Textile manufacturing, dyeing and 177,335 156,006 18,931,098 55.06 239,702 6,424 3,893 Recognized difference of realized
finishing, and trading of various and unrealized gain or loss on sales
textile products and disposal of property, plant and
equipment.
The Company De Licacy 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 Trade - 12,000 - - - ( 14,799 ) ( 850 )
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 Vantage Gain Holdings Limited Samoa General Investment USD 6,501,742 USD 6,342,469 6,501,742 73.33 154,512 ( 10,153 )
De LicacySamoa Company Hao Wan 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 Trade USD 6,100,000 USD 100,000 6,100,000 100 296,860 1,452
De LicacySamoa Company Beauty Plus Ventrues Limited 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 various USD 2,500,000 USD 2,500,000 - 100 61,043 ( 3,026 )
types of garments and cloths
Best Alliance International Limited Eden Road Compan British Virgin Islands General Import and Export Trade 1,700 1,700 50,000 100 411 6,438
Best Alliance International 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 International Limited Hong Kong Eden Road Compan Hong Kong General Import and Export Trade USD 50,000 - 50,000 100 70,029 68,457
Eden Road Compan Bright Wisdom Ltd. Samoa General Investment - USD 4,228,300 - - - 9,523
Lucky Unique EnterpriseCompany Gain Faith Investments Ltd Samoa General Investment USD 6,190,000 USD 5,630,000 6,190,000 100 218,141 21,708 Note3
Lucky Unique EnterpriseCompany E Textile Co .,Ltd. 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 Trade 12,000 - 1,200,000 60 417 ( 14,799 ) Note3
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. Futures co., Ltd Taiwan General Import and Export Trade 10,000 - 1,000,000 100 11,369 1,369
De LicacyBVI Holding Company De Shen (Cayman) Holdings Co., Ltd. Cayman Islands General Investment USD 108,032,701 USD 108,032,701 108,032,700,860 100 3,020,787 104,372
Der Sheng Cayman Company 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
trading of various textile and yarn
materials
Vantage Gain Holdings Perfect Step Ltd. British Virgin Islands General Investment USD 8,862,037 USD 8,644,837 8,862,037 20 210,718 ( 50,482 )
Limited
De LicacyAnguilla Company New Premium Enterprise 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 Ventrues Plentiful Praise Limited British Virgin Islands General Investment USD 14,023,848 USD 14,023,848 38 38 399,151 ( 38,283 )
Limited
----- End of picture text -----

No te 1 : O nl y t he a mo un t o f pr of it or loss rec og ni zed for each s ubsi dia ry direct ly in ves ted by the Compa ny a nd eac h i nves tee c ompa ny us i ng th e eq ui ty me thod s houl d be s ho wn. No te 2 : P leas e refer to Sc hedul e 8 (a tt ach ed ) fo r t he i n format i on ab out Ch in a i nves tee compa ni es.

No te 3 : S ubs idia ry of Luc ky Unique En te rpr is e Co m pany (a s ub sidia ry of the Company be fore Jul y 8, 2 020 )

Stock Number ： 1464

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)

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

Accumulated investment
China reinvestment Major Business Scope Paid-in Capital. Investment Method amount remitted from Taiwan at Investment amount remitted or recovered during the period amount remitted from Taiwan at Accumulated investment companies for the The investee The Company's direct or indirect investment Recognized Investment (loss) Year-end Investment Carrying Amoount Investment income Remitted
Company Names (Note 3) (Note 7) initial period
the end of the period (Note 3) period income (Loss) (%) (Note 1) (Note 1) for the year end
(Note 3)
Remitted Recovery
Hangzhou De Licacy Textile Co., Production and sales of long and short $ 1,196,160 3. Best Alliance $ 1,301,643 $ - $ - $ 1,301,643 $ 25,885 100 $ 27,000 $ 1,730,774 $ -
Ltd. fiber fabric processing and finishing (USD 42,000,000) International Limited (Note 4) (Note 4) (Note 6)
(USD 18,289,091 (USD 18,289,091
And $ 780,770) And $ 780,770)
Apex Textile Co., Ltd Manufacture and sale of textile 370,240 3.Bright Wisdom Ltd. 120,840 - - 120,840 ( 18,042 ) 53.22 ( 10,951 ) 193,570 -
products and dyeing and finishing (USD 13,000,000) (USD 3,000,000 (USD 3,000,000
And $ 35,400) And $ 35,400)
Chang Sin Lucky Unique Manufacture, dyeing and sales of - 3.Hao Wan Company 71,200 - 71,200 - ( 244 ) - ( 244 ) - -
EnterpriseCompany (Note 5) various high-quality fabrics and (USD 2,500,000) (USD 2,500,000)
textiles
Shanghai De Licacy Company General Investment 1,573,520 3.Sin Hao Company 、 58,384 - - 58,384 - 14.67 - 38,339 -
(USD 55,250,000) Samoa Sin Young (USD 2,050,000) (USD 2,050,000)
International Limited
Apex (Anqing) Textile Co., Ltd Manufacture and sale of various 296,192 3.Lucky Apex Ventures 296,192 - - 296,192 ( 4,361 ) 53.22 ( 1,692 ) 164,027 -
high-quality fabrics and textiles (USD 10,400,000) Ltd. (USD 10,400,000) (USD 10,400,000)
Accumulated remittance of investments Investmen Commission, MOEA approved
from Taiwan to China at the end of the investment amount
Company Names Investment quota in China according to the Investment Commission, MOEA
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 Au gust 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 De Yi Company's 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, 109. 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.

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)

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----- 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 P a y m e n t T e r m s Balance
general transactions ％ ) Income (loss)
Der Fa Company Hangzhou De Licacy Textile affiliated company No general customers
Co., Ltd. Sales $ 60,260 Trade at general price Open Account 120 days $ 8,982 58 $ -
to compare
Eden Road Company Hangzhou De Licacy Textile affiliated company General customer open
Co., Ltd. Sales 5,457 Trade at general price Open Account 90 days - - -
account 45-120 days
Eden Road Hangzhou De Licacy Textile affiliated company
International Co., Ltd. General customer open
Sales 6,745 Trade at general price Open Account 90 days 3,400 2 -
Ltd.(H.K.) account 45-120 days
Eden Road Hangzhou De Licacy Textile affiliated company
International Co., Ltd. General customer open
Purchase 13,231 Trade at general price Open Account 90 days ( 12,975 ) 14 -
Ltd.(H.K.) account 45-120 days
Thousand Well Hangzhou De Licacy Textile affiliated company No general customers
International Limted Co., Ltd. Purchase 332,601 Trade at general price Open Account 90 days to compare - - -
Fastpower Limited Hangzhou De Licacy Textile affiliated company No general customers
Co., Ltd. Purchase 34,064 Trade at general price Open Account 90 days - - -
to compare
Thousand Well Hangzhou De Licacy Textile affiliated company
(Samoa) International Co., Ltd. Purchase 105,665 Trade at general price Open Account 90 days No general customers ( 5,935 ) 100 -
Limted to compare
Fastpower (Samoa) Hangzhou De Licacy Textile affiliated company No general customers
Limited Co., Ltd. Purchase 8,347 Trade at general price Open Account 90 days to compare ( 8,344 ) 100 -
Futures co., Ltd Apex Textile Co., Ltd affiliated company No general customers
Sales 5,885 Trade at general price Open Account 90 days 4,253 62 -
to compare
Futures co., Ltd Apex (Anqing) Textile Co., Ltd affiliated company No general customers
Sales 15,119 Trade at general price Open Account 90 days 2,575 38 -
to compare
Total Express Ltd. Apex Textile Co., Ltd affiliated company No general customers
Purchase 915,988 Trade at general price Open Account 90 days ( 45,499 ) 100 -
to compare
----- End of picture text -----

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

Schedule 10

==> picture [472 x 85] 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 share capital in the individual 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.

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 11

(In thousands of New Taiwan Dollars)

	OwnedLand	Land Improvements	Buildings	Machinery Equipment	Transportation Equipment Other Equipment	Transportation Equipment Other Equipment	Property in construction
								Total
Cost
Balance as of January 1, 2019	$ 289,953	$ 11,310	$ 759,695	$ 1,291,707	$ 11,812	$ 376,955	$ 4,056	$ 2,745,488
Additions	-	-	1,582	89,723	825	5,450	13,750	111,330
Disposal	-	-	- (	75,297 )	- (	678 )	- (	75,975 )
Reclassification	-	-	1,336	39,472	-	2,406 (	14,021 )	29,193
Balance on December 31, 2019	$ 289,953	$ 11,310	$ 762,613	$ 1,345,605	$ 12,637	$ 384,133	$ 3,785
								$ 2,810,036

Accumulated depreciation and impairment
Balance as of January 1, 2019	$ -	$ 8,231	$ 485,337	$ 1,090,145	$ 10,956	$ 271,888	$ -	$ 1,866,557
Depreciation expense	-	594	18,829	62,491	785	26,216	-	108,915
Disposal	-	-	- (	75,147 )	- (	72 )	- (	75,219 )
Balance on December 31, 2019	$ -	$ 8,825	$ 504,166	$ 1,077,489	$ 11,741	$ 298,032	$ -
								$ 1,900,253

Net amount on December 31, 2019	$ 289,953	$ 2,485	$ 258,447	$ 268,116	$ 896	$ 86,101	$ 3,785
								$ 909,783

Costs
Balance on January 1, 2020	$ 289,953	$ 11,310	$ 762,613	$ 1,345,605	$ 12,637	$ 384,133	$ 3,785	$ 2,810,036
Additions	4,022	-	1,248	11,795	490	13,056	17,318	47,929
Disposal	-	-	- (	7,588 )	- (	2,875 )	- (	10,463 )
Reclassification	-	-	1,244	74,084	-	14,922 (	19,514 )	70,736
Balance on December 31, 2020	$ 293,975	$ 11,310	$ 765,105	$ 1,423,896	$ 13,127	$ 409,236	$ 1,589
								$ 2,918,238

Accumulated depreciation and impairment
Balance as of January 1, 2020	$ -	$ 8,825	$ 504,166	$ 1,077,489	$ 11,741	$ 298,032	$ -	$ 1,900,253
Depreciation expense	-	459	19,020	75,896	544	26,117	-	122,036
Disposal	-	-	- (	7,588 )	- (	1,345 )	- (	8,933 )
Balance on December 31, 2020	$ -	$ 9,284	$ 523,186	$ 1,145,797	$ 12,285	$ 322,804	$ -
								$ 2,013,356

Net amount on December 31, 2020	$ 293,975	$ 2,026	$ 241,919	$ 278,099	$ 842	$ 86,432	$ 1,589
								$ 904,882

§THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS§

ITEM S TAT E M E N T I N D E X

ITEM	S TAT E M E N T I N
MAJOR ACCOUNTING ITEMS IN ASSETS, LIABILITIES AND
EQUITY
Statement of cash	Statement 1
Statement of financial assets at fair value through profit or loss -	Statement 2
current
Statement of financial assets at amortized cost - current	Statement 3
Statement of Notes receivable(including related parties)	Statement 4
Statement of accounts receivable net (including related parties)	Statement 5
Statement of inventories	Statement 6
Statement of prepayments	Note 16
Statement of other current assets	Note 17
Statement of changes in financial assets at fair value through other	Statement 7
comprehensive income - noncurrent
Statement of changes in investments by the equity method	Statement 8
Statement of changes in property, plant and equipment	Note 13
Statement of changes in accumulated depreciation and impairment	Note 13
of property, plant and equipment
Statement of changes in right-of-use assets	Note 14
Statement of changes in accumulated depreciation of right-of-use	Note 14
assets
Statement of changes in intangible assets	Note 15
Statement of deferred income tax assets	Note 27
Statement of short-term borrowings	Statement 9
Statement of short-term notes payable	Statement 10
Statement of financial liabilities at fair value through profit or loss -	Note 7
current
Statement of notes payable (including related parties)	Statement 11
Statement of accounts payable (including related parties)	Statement 12
Statement of other payables	Note 20
Statement of provision for liabilities - current	Note 22
Statement of other current liabilities	Statement 13
Statement of long-term loans	Statement 14
Statement of lease liabilities	Note 14
Statement of deferred income tax liabilities	Note 27
Statement of profit and loss items
Statement of operating revenues	Statement 15
Operating costs	Statement 16
Statement of marketing expenses	Statement 17
Statement of administrative expenses	Statement 17
Research and development expenses	Statement 17
Statement of other income and expense net	Note 26
Statement of Finance Costs	Note 26
Statement of labor, depreciation and amortization by	Statement 18
function.

De Licacy Industrial Co., Ltd.

Statement of Cash

December 31, 2020

Statement 1

Unit: NT$1,000 (but the unit price is NTD)

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

Item Amount
Cash in hand and working capital $ 410
Bank Deposits
Checks and Demand Deposits-New 170,771
Taiwan Dollars
Foreign currency demand deposits 170,176
(Note)
340,947
$ 341,357
----- End of picture text -----

Note: USD$5,975,240 (based on USD$1=$28.48) and JPY$2,212 (based on JPY$1=0.2763).

De Licacy Industrial Co., Ltd.

Statement of financial assets at fair value through profit or loss - current December 31, 2020

Statement 2

Unit: NT$1,000 (but the unit price is NTD)

Name of Financial Product Funds Hua Nan`－`Saudi Arabian National Oil Fund	Shares 285,000		Amount $ 9,387	Acquisition Costs $ 10,000	Fair Value Unit Price Total Amount 32.94 $ 9,387	Fair Value Unit Price Total Amount 32.94 $ 9,387	Provision of guarantees or pledges
					Unit Price 32.94
							none

De Licacy Industrial Co., Ltd.

Statement of financial assets at amortized cost – current December 31, 2020

Statement 3

Unit: NT$1,000 (but the unit price is NTD)

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

Item Annual interest Period Amount
rate( ％ )
Taiwan Dollar Demand
Deposit
Taiwan Cooperative $ 30,016
Bank
Foreign Currency Demand
Deposit (Note 1)
O-Bank 272,177
Taiwan Dollar Time Deposit
Mega Bank 0.07 2020.12.28 ～ 2021.01.28 8,000
Taiwan Cooperative 0.09 2020.12.01 ～ 2021.05.01 13,500
Bank
21,500
Foreign Currency Time
Deposits (Note 2)
O-Bank 0.27 ～ 0.53 2020.07.14 ～ 2021.02.28 841,882
DBS Bank Limited 0.25 2020.10.16 ～ 2021.01.16 85,440
Taishin Bank 0.3 2020.10.23 ～ 2021.01.22 99,680
First Commercial 0.3 ～ 0.37 2020.11.27 ～ 2021.03.09 231,235
Bank
Hua Nan Commercial 0.27 2020.10.20 ～ 2021.02.02 304,454
Bank
Mega Bank 0.38 ～ 0.6 2020.07.05 ～ 2021.06.16 179,424
Bank Sinopac Co. Ltd. 0.28 ～ 0.37 2020.10.29 ～ 2021.03.08 153,792
Entie Commercial 0.39 ～ 0.5 2020.12.09 ～ 2021.03.23 48,416
Bank, Ltd.
E.Sun Commercial 0.31 2020.12.28 ～ 2021.03.28 421,670
Bank., Ltd.
2,365,993
$ 2,689,686
----- End of picture text -----

Note 1: USD $9,556,773 (calculated based on USD $1=$28.48) Note 2: USD$83,075,610 (calculated based on USD$1=$28.48)

De Licacy Industrial Co., Ltd.

Statement of Notes receivable(including related parties)

December 31, 2020

Statement 4

Unit: NT$1,000

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Company Name Amount
Non-related party
Shin Yuan Limited $ 13,052
GIANT TEXTILE ENTERPRISE CO., 4,514
LTD.
WEI HSU CO., LTD. 3,243
Other (Note) 5,623
$ 26,432
Related Party
Lucky Unique Enterprise Company $ 21,394
Tung Ming Company 2,533
Other (Note) 1,225
$ 25,152
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Note ： The balance of each account included does not exceed 5% of the total amount of each subject.

De Licacy Industrial Co., Ltd.

Statement of accounts receivable net (including related parties) December 31, 2020

Statement 5

Unit: NT$1,000

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Name of Customer Amount
Non-related parties
SINTEX INTERNATIONAL LTD. $ 141,518
PT PRIMA LTD. 29,464
Other (Note 1) 226,221
397,203
Less: Allowance for losses 50,103
$ 347,100
Related Party
Lucky Unique Enterprise Company $ 85,961
New Lake Ltd. 13,947
Chadtex Industrial Co., Ltd. 8,627
Other (Note 2) 8,359
$ 116,894
----- End of picture text -----

Note 1: The balance of each account included does not exceed 5% of the total accounts receivable. Of which, $30,842,000 was aged over 12 months and an allowance for loss of $30,842,000 was provided.
Note 2: The balance of each account included did not exceed 5% of the total 。
accounts receivable - related parties.

De Licacy Industrial Co., Ltd. Statement of Inventories December 31, 2020

Statement 6

Unit: NT$1,000

Item Finished goods Work-in-progress Raw materials		Amount	Amount
		Cost $ 922,188 268,596 180,972 $ 1,371,756		Market Price (Note)
				$ 1,090,153 452,316 192,026 $ 1,734,495

Note: Market value is based on net realizable value.

De Licacy Industrial Co., Ltd.

Statement of changes in financial assets at fair value through other comprehensive income - noncurrent

December 31, 2020

Statement 7 Name Chia Her Industrial Co., Ltd private equity	Beginning Shares Amount 4,975,176 $ 51,294	Beginning Shares Amount 4,975,176 $ 51,294		Increase in the	current period Amount $ 4,928	Decrease in the current period (Note) Shares Amount 2,709,085 $ -	Decrease in the current period (Note) Shares Amount 2,709,085 $ -	Ending Shares Fair Value 2,266,091 $ 56,222	Ending Shares Fair Value 2,266,091 $ 56,222	Unit: share. NT$1000 (unit price is NTD) Accumulated loss Provision of guarantees or pledges Not applicable none	Unit: share. NT$1000 (unit price is NTD) Accumulated loss Provision of guarantees or pledges Not applicable none
	Shares 4,975,176			Shares -		Shares 2,709,085		Shares 2,266,091
											none

Note: This is a capital reduction to cover the loss of Chia Her Industrial Co., Ltd.

D e L i c a c y I n d u s t r i a l C o . , L t d .

S t a t e m e n t 8

S t a t e m e n t o f c h a n g e s i n i n v e s t m e n t s a c c o u n t e d b y t h e e q u i t y m e t h o d

2 0 2 0

Unit: NT$1,000

Investment by equity method De Licacy (Samoa) Holding Company Tung Ming Textile Co., Ltd. Lucky Unique Enterprise Co., Ltd. De-Fa International Industrial Co., Ltd. Chadex Industrial Co., Ltd. View Best Global Limited De Licacy (BVI) Holdings Co. De Kao Trading Co., Ltd.	Beginningb	Beginningb	alance Amount $ 2,996,495 209,427 296,499 65,462 234,874 41,637 3,063,449 9,801 $ 6,917,644	Increase(Decrease)in theyear Shares Amount 11,059,273 $ 320,241 ( 15,279,600) ( 258,989) ( 13,807,405) ( 166,652) - - 1,598,818 21,329 540,000 15,622 - - ( 1,200,000) ( 12,000) ( $ 80,449)					Changes in theyear				Actuarial gain or loss of defined benefits $ 837 - ( 216) - - - - - $ 621		Endingbalance		Amount $ 3,393,211 - 111,412 49,709 239,702 41,053 3,012,615 - $ 6,847,702		Market Value or Net Equity $ 3,497,273 - 111,470 49,665 239,921 41,053 3,020,823 - $ 6,960,205	Evaluation basis Equity Methos `〞` `〞` `〞` `〞` `〞` `〞` `〞`	Provision of guarantees or pledges
	Shares 41,545,109 15,279,600 23,743,612 5,500,000 17,332,280 1,935,000 27,010 1,200,000			Shares 11,059,273 ( 15,279,600) ( 13,807,405) - 1,598,818 540,000 - ( 1,200,000)	Investment (loss) income ( $ 188) 7,020 7,549 ( 15,753) 3,893 ( 14,796) 107,012 ( 850) $ 93,887		Unrealized income/loss $ - - 2,117 - 473 (Note4) - - - $ 2,590	Cash Dividend $ - - ( 7,949) - ( 31,198) - - - ( $ 39,147)	Capital Surplus $ 5,410 (Note 1) 42,984 (Note 2) ( 28,150) (Note3) - 675 - - 3,049 $ 23,968	Treasury Stocks $ - - 12,681 - - - - - $ 12,681	Exchange differences on translation of financial statements of foreign operating institutions $ 70,416 ( 227) ( 3,135) - - ( 1,410) ( 157,846) - ( $ 92,202)	Unrealized gain or loss on investments in equity instruments measured at fair value through other comprehensive income $ - ( 215) ( 1,332) - 9,656 - - - $ 8,109		Shares 52,604,382 - 9,936,207 5,500,000 18,931,098 2,475,000 27,010 -	Shareholding ratio(`％`) 100 - 24.98 100 55.06 100 100 -
																					none `〞` `〞` `〞` `〞` `〞` `〞` `〞`

N o t e 1 : T h e d e c r e a s e o f $ 8 , 0 8 4 , 0 0 0 i n t h e c a p i t a l i n c r e a s e o f S u b s i d i a r y a n d t h e i n c r e a s e o f $ 1 3 , 4 9 4 , 0 0 0 i n t h e r e o rg a n i z a t i o n u n d e r c o m m o n c o n t r o l w e r e n o t r e c o g n i z e d i n p r o p o r t i o n t o t h e s h a r e h o l d i n g . N o t e 2 : T h e i n c r e a s e o f $ 4 2 , 9 8 4 , 0 0 0 w a s d u e t o t h e r e o rg a n i z a t i o n u n d e r c o m m o n c o n t r o l .

N o t e 3 : T h e d e c r e a s e o f $ 3 5 , 6 0 9 , 0 0 0 f o r t h e r e o r g a n i z a t i o n u n d e r c o m m o n c o n t r o l a n d t h e i n c r e a s e o f $ 7 , 4 5 9 , 0 0 0 f o r t h e d i s p o s a l o f S u b s i d i a r y. N o t e 4 : O f w h i c h , $ 2 1 2 , 0 0 0 w a s r e a l i z e d f r o m t h e d i s p o s a l o f p r o p e r t y, p l a n t a n d e q u i p m e n t .

Unit: NT$1,000

De Licacy Industrial Co., Ltd. Statement of short-term borrowings December 31, 2020

Statement 9

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Bank Name Nature of Borrowing Amount Contract Period Interest rate range( ％ ) Lines of credit Endorsement or Guarantee
First Commercial Bank Credit Loans $ 207,976 2020.10.06 ～ 2021.03.26 1.35 ～ 1.40 270,000 The Chairman of the Company is the guarantor.
The Shanghai Commercial & Savings Bank 〞 50,000 2020.12.30 ～ 2021.12.18 1.41 50,000 〞
JIH SUN INTERNATIONAL BANK 〞 50,000 2020.11.17 ～ 2021.02.17 1.40 50,000 〞
Taishin Bank 〞 75,000 2020.12.07 ～ 2021.01.07 1.3 75,000 〞
Bank of Taiwan 〞 50,000 2020.11.23 ～ 2021.02.19 1.4 50,000 〞
Bank Sinopac Co. Ltd. 〞 80,000 2020.12.28 ～ 2021.03.26 1.20 80,000 〞
Land Bank of Taiwan 〞 20,000 2020.10.29 ～ 2021.02.26 1.20 50,000 〞
Entie Commercial Bank, Ltd. 〞 240,000 2020.12.28 ～ 2021.06.26 1.17 240,000 〞
Shin Kong Commercial Bank Co., Ltd. 〞 50,000 2020.12.17 ～ 2021.01.17 1.25 50,000 〞
DBS Bank Limited 〞 135,000 2020.10.15 ～ 2021.01.13 1.10 150,000 〞
Cathay United Bank Company Limited, 〞 80,000 2020.12.28 ～ 2021.02.05 1.20 80,000 〞
Hua Nan Commercial Bank 〞 260,000 2020.12.18 ～ 2021.02.18 1.22 260,000 〞
The Bank of East Asia Limited 〞 150,000 2020.11.20 ～ 2021.04.23 1.31 150,000 〞
The Export-Import Bank of the Republic of China 〞 60,000 2020.03.27 ～ 2021.03.27 0.79 80,000 〞
Yuanta Commercial Bank Co., Ltd. 〞 150,000 2020.08.31 ～ 2021.02.26 1.33 150,000 〞
Taipei Fubon Bank 〞 97,000 2020.11.04 ～ 2021.02.16 1.30 100,000 〞
KGI Commercial Bank Co., Ltd. 〞 100,000 2020.11.27 ～ 2021.05.27 1.23 100,000 〞
E.Sun Commercial Bank., Ltd. 〞 30,000 2020.12.17 ～ 2021.03.17 1.15 50,000 〞
Bank Of Panshin 〞 50,000 2020.10.29 ～ 2021.02.10 1.41 50,000 〞
1,934,976
Taishin Bank Collateralized Borrowing 88,000 2020.12.07 ～ 2021.01.07 1.00 100,000 Time deposits
Hua Nan Commercial Bank 〞 272,000 2020.12.04 ～ 2021.01.04 1.13 274,000 〞
First Commercial Bank 〞 200,000 2020.11.27 ～ 2021.02.26 1.05 200,000 〞
DBS Bank Limited 〞 77,000 2020.09.04 ～ 2021.03.03 1.00 500,000 〞
Mega Bank 〞 187,000 2020.08.10 ～ 2021.04.19 1.10 ～ 1.20 330,000 〞
O-Bank 〞 1,013,000 2020.08.12 ～ 2021.02.26 1.01 ～ 1.11 1,200,000 〞
Bank Sinopac Co. Ltd. 〞 140,000 2020.10.27 ～ 2021.03.26 1.00 ～ 1.02 200,000 〞
E.Sun Commercial Bank., Ltd. 〞 40,000 2020.12.30 ～ 2021.03.30 0.83 300,000 〞
Taiwan Cooperative Bank 〞 290,000 2020.06.29 ～ 2021.02.07 1.4 300,000 〞
Entie Commercial Bank, Ltd. 〞 370,000 2020.12.09 ～ 2021.03.23 0.85 600,000 〞
2,677,000
$ 4,611,976
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De Licacy Industrial Co., Ltd.

Statement of short-term notes payable

December 31, 2020

Statement 10

Unit: NT$1,000

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

Amount
Unamortized ticket
Guarantee or Acceptance Agency Period Discount Rate (annual)( ％ ) Issuin Amount discount Carry Amount
Grand Bills Finance Corp. 2020.11.20 ～ 2021.01.29 0.500 $ 50,000 ( $ 20 ) $ 49,980
Taiwan Cooperative Bills Finance Corp. 2020.12.25 ～ 2021.02.23 0.902 100,000 ( 133 ) 99,867
China Bills Finance Corp. 2020.12.04 ～ 2021.01.04 0.400 50,000 ( 3 ) 49,997
Mega Bills Finance Co. Ltd. 2020.11.05 ～ 2021.01.04 0.852 50,000 ( 5 ) 49,995
Dah Chung Bills Finance Corp. 2020.12.11 ～ 2021.02.04 0.850 50,000 ( 41 ) 49,959
Da Ching Bills Finance Corp. 2020.12.18 ～ 2021.02.26 1.040 50,000 ( 81 ) 49,919
Taiwan Finance Corp 2020.09.18 ～ 2021.01.08 1.140 50,000 ( 28 ) 49,972
International Bills Finance Corp. 2020.10.07 ～ 2021.01.05 0.650 50,000 ( 5 ) 49,995
O-Bank 2020.12.21 ～ 2021.03.19 0.330 260,000 ( 183 ) 259,817
$ 710,000 ( $ 499 ) $ 709,501
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De Licacy Industrial Co., Ltd.

Statement of notes payable (including related parties)

December 31, 2020

December 31, 2020
Statement 11 Company Name Non-related parties JEAN WAN INTERNATIONAL CO., LTD. Rui Chong Limited Farsmart Co. Ltd. Hsinjung Fiber Industry Co., Ltd SUN WAN INTERNATIONAL CO., LTD. Other (Note) Related Party Lucky Unique Enterprise Company Tung Ming Company	Unit: NT$1,000 Amount
		$ 6,873 6,523 5,030 3,732 3,490 35,557 $ 61,205 $ 22,197 10,009 $ 32,206

Note: The balance of each account included does not exceed 5% of the total Notes Payable.

De Licacy Industrial Co., Ltd.

Statement of Accounts Payable(including related parties) December 31, 2020

Statement 12

Unit: NT$1,000

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

Company Name Amount
Non-related party
YI SHIN TEXTILE INDUSTRIAL CO.,
LTD. $ 18,542
Other (Note) 76,367
$ 94,909
Related Party
New Lake Ltd. $ 43,685
Tung Ming Company 29,156
Lucky Unique Enterprise Company 8,134
Chadtex Industrial Co., Ltd. 2,896
$ 83,871
----- End of picture text -----

Note: The balance of each account included does not exceed 5% of the total accounts payable.

Statement 13

De Licacy Industrial Co., Ltd. Statement of other current liabilities December 31, 2020

Statement of other current liabilities

Unit: NT$1,000

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

Item Amount
Receipts in suspense $ 45,004
Receipts in lieu 4,632
Other (Note) 1,593
$ 51,229
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Note: The individual balances included do not exceed 5% of other total current liabilities.

De Licacy Industrial Co., Ltd.

Statement of Long-term Loans December 31, 2020

Statement 14

Unit: NT$1,000

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

Expiry Amount within Amount over than 1
Bank Name Summary Ending balance 1 year year Contract Period Interest Rate(%) Mortgage or guarantee
The Export-Import Bank of Mortgage loan $ 12,000 $ 1,333 $ 10,667 2020.11.27 ～ 2024.08.15 0.63 Machinery and Equipment
the Republic of China
The Export-Import Bank of Credit loan 240,000 80,000 160,000 2017.01.19 ～ 2025.03.20 1.39 ～ 1.50 The Chairman of the Company
the Republic of China is the guarantor
〞〞
O-Bank 250,000 - 250,000 2019.05.22 ～ 2029.07.09 0.21
〞〞
Hua Nan Commercial Bank 293,400 12,158 281,242 2019.08.20 ～ 2029.11.12 0.65 ～ 1.3
〞〞
Mega Bank 88,000 3,667 84,333 2020.10.08 ～ 2025.10.08 1.39
〞
O-Bank(Lead bank of Syndicated loan 1,400,000 176,000 1,224,000 2019.02.22 ～ 2024.02.22 1.797
syndicated loan)
〞
O-Bank(Lead bank of Commercial paper 799,932 - 799,932 2020.10.16 ～ 2021.01.08 0.85
syndicated loan) guarantee for
syndicated loans
3,083,332 273,158 2,810,174
Less: syndicated loan 4,653 - 4,653
organizing fees
$ 3,078,679 $ 273,158 $ 2,805,521
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De Licacy Industrial Co., Ltd. Statement of Operation Income

2020

Statement 15

Unit: NT$1,000

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

Item Quantity Amount
Sales Revenue
Finished Fabric 31,685,000 yards $ 2,751,542
Yarn and processed yarn 1,836,000 kg 221,690
Garments and garment substrates 747,000 pieces 69,470
Dyeing auxiliaries, pulp and main
materials 186,000 kg 8,917
3,051,619
Processing revenue 3,591
3,055,210
Less: Sales returns 193,000 yards 17,779
Sales Discount 31,791
Net amount $ 3,005,640
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De Licacy Industrial Co., Ltd.

Statement of Operating Cost

2020

Statement 16

Unit: NT$1,000

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

Item Amount
Beginning Materials $ 157,741
Add: Current year material imports 1,080,644
Recovery of decline and slow-moving
inventory 317
Less: Inventory loss 1
Sale of raw materials 150,247
Ending raw materials 180,972
Transfer to research and development
expenses 3,377
Transfer to manufacturing costs 30,397
Direct raw material consumption 873,708
Direct Labor 203,137
Manufacturing Costs 577,175
Add: Processing costs 283,992
Less: Transferred research and development costs 2,968
Manufacturing Costs 1,935,044
Add: Beginning work-in-progress 278,862
Current year shipments 23,378
Transfer of finished goods 1,989,975
Gain on reversal of inventory decline and
slowness 105
Less: Inventory losses 62
Sale of work in progress 64,284
Ending work-in-progress 268,596
Transfer to research and development
expenses 1,387
Transfer to marketing expenses 10
Transfer to administrative expenses 131
Transfer to manufacturing costs 1,173
Cost of finished goods 3,891,721
Add: Beginning finished goods 857,714
Current year shipments 726,155
Less: Ending finished goods 922,188
Inventory loss 13
Transfer to work-in-progress 1,989,975
Transfer to marketing expenses 8,424
Transfer to research and development
expenses 11,095
Transfer to manufacturing costs 86
Loss on decline and slow-moving inventory 24,047
Cost of production and sales 2,519,762
Cost of raw materials and work-in-process sold 214,531
Unallocated fixed manufacturing costs 49,874
Underlying revenue ( 582 )
Inventory losses 76
Loss on decline in value of inventories 23,625
Total operating costs $ 2,807,286
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De Licacy Industrial Co., Ltd. Statement of operation expense 2020

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Statement 17 Unit: NT$1,000
Expected
credit
Marketing Administratio impairment
Summary Expense n Expense R&D expense loss Total
Salary Salaries, bonuses and
overtime fees, etc. $ 45,011 $ 31,890 $ 54,319 $ - $ 132,220
Shipping Expenses Land, sea and air
freight expenses, etc. 50,479 344 630 - 51,453
Research fees Product development
- - -
expenses 28,431 28,431
Depreciation Depreciation of
property, plant and
equipment and
-
right-of-use assets 14,249 4,618 3,768 22,635
Representation fees Expenses related to
business development 11,266 5,121 83 - 16,470
Export expenses Inspection and testing
- - -
fees, etc. 16,254 16,254
Insurance expenses Labor and health
-
insurance fees, etc. 4,852 5,285 6,001 16,138
Labor costs Accountant's auditing
fee and stock agency
service fee - 10,501 80 - 10,581
Donations Donation to
Educational
Foundation - 6,340 - - 6,340
Expected credit
- - -
impairment loss 33,378 33,378
-
Other (Note) 39,813 35,176 29,766 104,755
$ 181,924 $ 99,275 $ 123,078 $ 33,378 $ 437,655
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Note: The amount of each item does not exceed 5% of the amount of this account.

De Licacy Industrial Co., Ltd. Statement of labor, depreciation and amortization by function.

Statement 18 Unit: NT$1,000

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

2020 2019
Operation Operation
Operation Cost Expense Total Operation Cost Expense Total
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Employee Benefits Payroll Labor and Health Insurance expense Pension Remuneration to directors Other Depreation Amortization	$ 258,458 27,649 9,052 - 9,206 $ 304,365 $ 112,717 -	$ 127,069 15,506 8,415 4,151 7,039 $ 163,180 $ 22,635 93	$ 385,527 43,155 17,467 4,151 16,245 $ 466,545 $ 135,352 93	$ 298,645 27,943 8,925 - 9,539 $ 345,052 $ 101,690 -	$ 160,503 16,132 8,791 13,500 7,470 $ 206,396 $ 16,566 148	$ 459,148 44,075 17,716 13,500 17,009 $ 551,448 $ 118,256 148

Note: The number of employees for the current year and the previous year were 829 and 852, respectively, of which the number of directors who were not also employees in 2020 and 2019 were 4 and 5, respectively.
(1) The average employee benefit expense for the year was $560,000 ("Total employee benefit expense for the year - Total director's remuneration"/"Number of employees for the year - Number of directors who are not concurrent employees"). The average employee benefit expense for the previous year was $635,000 ("Total amount of employee benefit expense for the previous year - Total amount of directors' remuneration" / "Number of employees for the previous year - Number of directors who were not also employees").
(2) The average employee salary expense for the year was $467,000 (Total salary expense for the year / "Number of employees for the year - Number of directors who were not also employees"). The average employee salary expense for the previous year was $542,000 (Total salary expense for the previous year / "Number of employees for the previous year - Number of directors who were not also employees").
(3) Change in average employee salary cost adjustment (14%) ("Average employee salary cost for the current year - Average employee salary cost for the previous year"/ Average employee salary cost for the previous year).
(4) The Company's employee compensation policy is to provide employees with compensation and benefits that are above the industry average. Employee compensation includes monthly salaries (including special allowances, special expenses, production bonuses, etc. for performance and production results), bonuses for the three holidays (Spring Festival, Labor Day, and Mid-Autumn Festival), and compensation based on the Company's annual profitability (year-end bonuses). In accordance with Article 26 of the Company's Articles of Incorporation, the Company shall set aside no less than 4% of the Company's annual profits as employee compensation, and the amount and distribution method shall be recommended by the Compensation Committee to the Board of Directors for approval.
(5) The chairman, vice chairman, and managers (including managers who serve as directors) of the Company shall be paid monthly in accordance with the Salary Control Act. In the event of a salary increase or a change in position during their term of office that results in an increase in compensation or the payment of a year-end bonus, the compensation committee shall consider the matter and submit it to the Board of Directors for a resolution. In accordance with Article 26 of the Company's Articles of Incorporation, the Board of Directors shall recuse itself from voting on any resolution of compensation for itself and its related parties. In accordance with Article 26 of the Company's Articles of Incorporation, if the Company makes a profit in a year, the Board of Directors shall resolve to set aside not more than 3% of the remuneration of the directors. However, if the Company still has accumulated losses, the amount of compensation shall be reserved in advance and then the remuneration to the directors shall be provided in accordance with the aforementioned percentage.
(6) The remuneration for independent directors shall be NT$250,000 per year for each director, regardless of profit or loss.
(7) The company has established an audit committee to replace the supervisor

AI assistant

DE LICACY — Annual Report 2020

51822_rns_2020-11-12_40d4ee53-d990-4fca-8401-83fe84a5c5d2.pdf

§CONTENTS§

Opinion

Basis of Opinion

Key Audit Matter

Other Matters

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

Auditors’ Responsibilities for the Audit of the Financial Statements

De Licacy Industrial Co., Ltd. Individual Balance Sheets

De Licacy Industrial Co., Ltd.

Individual Statements of comprehensive Income

De Licacy Industrial Co., Ltd

De Licacy Industrial Co., Ltd.

Individual Cash Flows Statement

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

1. Company History

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Statement of compliance

period in which they arise.

(5) Inventories

(6)Investment in Subsidiaries

(7) Investment in affiliated companies

(8)Property, plant, and equipment

(9)Intangible assets

1. Separately acquired

2. Derecognition

1. Financial assets

(12)Treasury stocks

Merchandise Sales Revenue

(15)Leases

2.The Company is the lessee

(16)Borrowing Costs

1. Short-term employee benefits

2. Retirement benefits

1) Current tax

3) Current and deferred taxes

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

6.CASH AND CASH EQUIVALENTS

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

9.Financial assets at amortized cost

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

11.Inventory

12. Investments by using the equity method

14.Lease Agreement

15.Other Intangible Assets

16.Prepayments

18. Loan

December 31, 2020

(3)Long-term bank loans

1.Bank Guarantees and Credit Loan

2. Bank Syndications signed on February 13 2019

Terms and Conditions

Settlement method

Financial Ratios

19.Notes Payable and Accounts Payable

(1) Notes Payable

20.Other accounts payable

21.Deferred income

22.Refund Liability

23.Post-employment benefit plan

(1) Defined contribution plan

(2) Defined benefit plan

24.Equity

(3)Retained Earnings and Dividends Policy

(5)Other Equalities

(6)Treasury Stocks

25.Revenue

(1)Description of Customer Agreement

(3)Revenue breakdown from customer contracts

(6) Deprecation and Amortization

(7) Employee benefit expense

(8)Remuneration to employee and directors

27.Income Tax

2020

28.Earnings per share (net loss)

Shares

29.Disposal of Investment Subsidiary - Loss of Control

30.Non-cash transactions

DE LICACY Annual Report 2020

( `二` )Type of financial Instruments

( `三` )Financial Risk Management Objectives and Policies