EMIC — Annual Report 2021

Nov 23, 2021

Stock code: 2614

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Financial Statements

With Independent Auditors’ Report

For the Years Ended December 31, 2021 and 2020

Address: 5F & 8F., No. 368, Sec. 1, Fuxing S. Rd., Da'an Dist., Taipei City 106, Taiwan Telephone: 886-2-27557565

The independent auditors’ review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ review report and consolidated financial statements, the Chinese version shall prevail.

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Table of Contents

Table of Contents
Contents 1. Cover Page 2. Table of Contents 3. Representation Letter 4. Independent Auditors’ Report 5. Consolidated Balance Sheet 6. Consolidated Statements of Comprehensive Income 7. Consolidated Statements of Changes in Equity 8. Consolidated Statements of Cash Flows 9. Notes to the Consolidated Financial Statements I. Company history II. Approval date and procedures of the consolidated financial statements III. New standards, amendments and interpretations adopted IV. Summary of significant accounting policies V. Significant accounting assumptions and judgments, and major sources of estimation uncertainty VI. Explanation of significant accounts VII. Related party transactions VIII. Pledged assets IX. Significant commitments and contingencies X. Losses due to major disasters XI. Subsequent Events XII. Other XIII. Other disclosures (I) Information on significant transactions (II) Information on investees (III) Information on investment in Mainland China (IV) Major shareholders XIV. Segment information	Page 1 2 3 4～7 8～9 10～11 12 13～14 15 15 15～16 16～36 36～39 39～76 76～80 80～81 81～82 82 82 82 82～83, 86～91 82～83, 92～93 82～83, 94～95 82～83, 96 83～85	Note
		1 2 3 4 5 6～36 37 38 39 40 41 42 43 43 43 43 43 44

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Representation Letter

The entities that are required to be included in the combined financial statements of Eastern Media International Corporation as of and for the year ended December 31, 2021 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10, "Consolidated Financial Statements." endorsed by the Financial Supervisory Commission of the Republic of China. In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, Eastern Media International Corporation and Subsidiaries do not prepare a separate set of combined financial statements.

Company name: Eastern Media International Corporation Chairman: Liao, Shang Wen Date: March 23, 2022

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Independent Auditors’ Report

To the Board of Directors of Eastern Media International Corporation:

Opinion

We have audited the consolidated financial statements of Eastern Media International Corporation and its subsidiaries (“the Group”), which comprise the consolidated balance sheets as of December 31, 2021 and 2020, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of other auditors (please refer to Other Matter paragraph), the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or the former Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audit of the consolidated financial statements as of and for the year ended December 31, 2021 and 2020 in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors' Responsibilities for the Audit of the consolidated Financial Statements section of our report. We are independent of the Group in accordance with the Certified Public Accountants Code of Professional Ethics in Republic of China (" the Code"), and we have fulfilled our other ethical responsibilities in accordance with the Code. Based on our audits and the reports of other auditors, we believe that the audit evidence we have obtained, is sufficient and appropriate to provide a basis of our opinion.

Other Matter

We did not audit the financial statements of partial companies, associates of the Group, which represented investments in other entities accounted for using the equity method. Those statements were audited by other auditors, whose reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for partial companies, is based solely on the reports of other auditors. The investments in partial companies accounted for using the equity method constituting 15.14% and 12.03% of consolidated total assets at December 31, 2021 and 2020, respectively, and the related share of profit of associates accounted for using the equity method constituting 65.85% and (7.26)% of consolidated total profit before tax for the years then ended, respectively.

Eastern Media International Corporation has prepared its parent-company-only financial statements as of and for the years ended December 31, 2021 and 2020, on which we have issued an unqualified opinion with other matters paragraph and unqualified opinion with emphasis paragraph and other matter paragraph respectively.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance

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in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

1. Revenue recognition

Please refer to Note 4r "Revenue recognition" for accounting policy related to revenue recognition, and Note 30 "Revenue from contracts with customers" to the consolidated financial statements.

Description of key audit matter:

Major of the operating revenue sources of the Group are the services of warehousing, media advertising, and pet merchandise sales. The impact of revenue recognition on financial report is significant. Therefore, revenue recognition is one of the key matters in our audit.

How the matter was addressed in our audit:

In response to the risk mentioned above, we planned to perform the following audit procedures: understanding the sales and collection cycle, and sampling to test the effectiveness of manual control and internal control. Additionally, we would perform test of detail on revenue; as well as perform sales cut off test on the periods before and after the balance sheet date by inspecting relevant documents of sales transactions to determine whether sales had been appropriately recognized.

1. Right of use assets impairment

Please refer to Note 4o "Leases " and Note 4q “Impairment of non-financial assets” for accounting policy related to right-of-use assets impairment, and Note 18 " Right-of-use assets" to the consolidated financial statements.

Description of key audit matter:

The right-of-use assets of the Group constituted 39.60% of its consolidated assets. The assets mentioned above is likely to be influenced by the government policies and economic environments, which may result in the recoverability of the assets valued with discounted cash flow to be highly uncertain. Therefore, right-of-use assets impairment is one of the key matters in our audit.

How the matter was addressed in our audit:

In response to the risk mentioned above, we have performed the following audit procedures: evaluating the consistency of discounted cash flow and the future operating plans; verifying the assumptions made by the management according to (i) external information, (ii) understanding of the Group, and (iii) relative business information; evaluating the ratios such as the growth rate, discount rate, gross profit rate, etc. to determine whether they were adopted properly.

• 3.The investments accounted of using equity method impairment

• Please refer to Note 4m " Investment in associates " and Note 4q “Impairment of non-financial assets” for accounting policy related to the investments accounted of using equity method impairment, and Note 13 " investments accounted for using equity method " to the consolidated financial statements.

Description of key audit matter:

The investments accounted of using equity method of the Group amounted to $2,409,481 thousand, constituting 15.14% of its consolidated assets. The evaluation of the impairment on December 31 is significant to the consolidated financial statements. There are risks that the

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assumption of the financial performance and cash flows related to the Group’s associates which Management uses remains a highly uncertainty. This risk may affect the recoverability of the asset mentioned above. Therefore, the evaluation of the investments accounted of using equity method impairment is one of the key matters in our audit.

How the matter was addressed in our audit:

In response to the risk mentioned above, we planned to perform the following audit procedures: obtaining the information on which the management relied to make assumptions and evaluations for the report made by external expert; engaging evaluation experts to assess the appropriateness of the evaluation methods and assumptions used by them, including the discount rate and the forecast of future cash flows; comparing the forecasted and historical data, past forecasts and actual conditions; evaluating the reasonableness of past management’s estimates.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

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

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

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

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

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

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

1. Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit

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procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

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

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

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

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

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

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

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

KPMG Taipei, Taiwan (Republic of China) March 23, 2022

Notes to Readers

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

The independent auditors’ audit report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ audit report and consolidated financial statements, the Chinese version shall prevail.

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (Note 6 and 16) 1110 Current financial assets at fair value through profit or loss (Note 7) 1151 Notes receivable (Notes 9 and 30) 1160 Notes receivable due from related parties, net (Notes 9, 30 and 37) 1170 Accounts receivable, net (Notes 9, 16 and 30) 1180 Accounts receivable due from related parties, net (Notes 9, 30 and 37) 1200 Other receivables, net (Notes 7, 10 and 16) 1210 Other receivables due from related parties, net (Notes 10 and 37) 130X Inventories (Note 11 and 16) 1400 Current biological assets, net 1410 Prepayments (Note 37) 1476 Other current financial assets (Notes 6, 38 and 39) 1479 Other current assets, others (Note 16) Non-current assets: 1517 Non-current financial assets at fair value through other comprehensive income (Note 8) 1550 Investments accounted for using equity method, net (Note 13 and 38) 1600 Property, plant and equipment (Notes 16, 17, 37 and 38) 1755 Right of use assets (Note 16 and 18) 1780 Intangible assets (Notes 16, 19 and 37) 1840 Deferred tax assets (Note 27) 1920 Refundable deposits (Notes 18 and 38) 1980 Other non-current financial assets (Note 38) 1990 Other non-current assets, others (Note 16 and 39) Total assets	December 31, 2021	December 31,2020
	Amount % $ 1,761,806 11 961,420 6 49,092 - 76,382 1 417,572 3 29,065 - 85,626 1 9,118 - 381,297 2 21,386 - 61,316 - 52,440 - 333 - 3,906,853 24 7,510 - 2,409,481 15 1,764,631 11 6,303,591 40 405,966 3 446,453 3 582,267 4 25,272 - 67,783 - 12,012,954 76 $ 15,919,807 100	Amount % $ 1,855,653 11 381,611 2 63,006 - 54,568 - 333,369 2 22,573 - 93,616 1 7,392 - 346,909 2 12,405 - 65,036 1 43,934 1 915 - 3,280,987 20 8,104 - 2,443,035 15 1,669,684 10 7,210,677 45 467,334 3 414,169 3 562,689 3 33,760 - 133,035 1 12,942,487 80 $ 16,223,474 100

(Please see accompanying notes to the consolidated financial statements)

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Balance S heet s (Cotn’d)

(Expressed in Thousands of New Taiwan Dollars)

Liabilities and Equity Current liabilities: 2100 Short-term borrowings (Notes 16, 20, 36 and 38) 2110 Short-term notes and bills payable (Notes 21 and 36) 2130 Current contract liabilities (Notes 30 and 37) 2150 Notes payable (Note 22 and 36) 2170 Accounts payable (Note 16) 2180 Accounts payable due from related parties, net (Notes 37) 2200 Other payables (Notes 16 and 36) 2220 Other payables due from related parties, net (Notes 37) 2230 Current tax liabilities 2280 Current lease liabilities (Note 16 and 25) 2310 Advance receipts (Note 37) 2320 Long-term liabilities, current portion (Notes 23, 24, 36 and 38) 2399 Other current liabilities, others (Note 16) Non-current liabilities: 2540 Long-term borrowings (Notes 23, 36 and 38) 2570 Deferred tax liabilities (Note 27) 2580 Non-current lease liabilities (Note 16 and 25) 2610 Long-term notes payable (Notes 24) 2640 Non-current net defined benefit liability (Note 26) 2645 Guarantee deposits received (Note 16) Total liabilities Equity attributable to owners of parent (Note 14 and 28) 3100 Capital stock 3200 Capital surplus 3300 Retained earnings 3400 Other equity interest Total equity attributable to owners of parent 36XX Non-controlling interests ((Note 14 and 15) Total equity Total liabilities and equity	December 31, 2021 Amount % $ 93,445 1 79,848 1 32,238 - 190,461 1 274,282 2 9,097 - 662,071 4 32,124 - 2,412 - 1,066,678 7 6,891 - 1,066,787 7 29,627 - 3,545,961 23 331,125 2 525 - 5,320,955 33 35,843 - 20,976 - 4,317 - 5,713,741 35 9,259,702 58 5,289,504 33 16,243 - 1,284,545 8 ( 346,609) ( 2) 6,243,683 39 416,422 3 6,660,105 42 $15,919,807 100	December 31,2020
		Amount % $ 62,295 1 - - 37,439 - 94,604 1 204,805 1 11,483 - 623,289 4 16,660 - 14,111 - 1,174,478 7 23,125 - 290,529 2 28,433 - 2,581,251 16 637,986 4 48 - 6,167,307 38 60,886 - 25,717 - 4,756 - 6,896,700 42 9,477,951 58 5,567,899 35 20,769 - 983,904 6 (295,956) (2) 6,276,616 39 468,907 3 6,745,523 42 $16,223,474 100
	(

(Please see accompanying notes to the consolidated financial statements)

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Comprehensive Income

(Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

4000 Operating revenue (Note 30 and 37) 5000 Operating costs (Note 11, 26, 31 and 37) Gross profit from operations 6000 Operating expenses (Note 26, 31 and 37) 6450 Impairment loss determined in accordance with IFRS 9 (Note 9) Net operating income (loss) Non-operating income and expenses: 7100 Interest income (Note 32 and 37) 7010 Other income (Note 7, 8, 25, 32 and 37) 7020 Other gains and losses, net (Note 13, 16, 17, 18, 19, 32 and 37) 7050 Finance costs, net (Note 25, 32 and 37) 7060 Share of profit of associates and joint ventures accounted for using equity method (Note 13) 7900 Profit before tax 7950 Less: tax income (Note 27) Net profit 8300 Other comprehensive income: 8310 Components of other comprehensive income that will not be reclassified to profit or loss 8311 Losses on remeasurements of defined benefit plans 8316 Unrealized losses from investments in equity instruments measured at fair value through other comprehensive income 8320 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will not be reclassified to profit or loss 8349 Less: Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Total number of items not reclassified to profit or loss 8360 Components of other comprehensive income (loss) that will be reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 8370 Share of other comprehensive income of associates and joint ventures accounted for using equity method, components of other comprehensive income that will be reclassified to profit or loss 8399 Less: Income tax related to components of other comprehensive income that will be reclassified to profit or loss Components of other comprehensive income that will be reclassified to profit or loss 8300 Other comprehensive income, net of tax Total comprehensive income			**For the years ended December 31 **	**For the years ended December 31 **	**For the years ended December 31 **	**For the years ended December 31 **	**For the years ended December 31 **	**For the years ended December 31 **
			2021				2020
	(	$	Amount 5,511,919 3,843,658 1,668,261 1,497,702 13,437 157,122 5,682 346,482 42,655 ) 224,123 ) 467,644 710,152 39,138) 749,290 655 14 78) - 591 4,268 ) 46,459 ) - 50,727) 50,136 ) 699,154		％ 100 70 30 27 - 3 - 6 1) 4) 9	Amount $ 4,728,014 3,283,081 1,444,933 1,444,426 10,662 ( 10,155 ) 14,953 224,352 ( 43,461 ) ( 225,745 ) 349,775 309,719 ( 183,387) 493,106 997 19,488 ( 935 ) - 19,550 680 ( 68,973 ) - ( 68,293 ) ( 48,743 ) $ 444,363		％ 100 69 31 31 - ( -) - 5 ( 1) ( 5) 7 6 ( 4) 10 - - - - - - ( 1) - ( 1) ( 1) 9
		( (
				( (
		(		(	13 1) 14 - - - - - - 1) - 1) 1) 13
		( (		(
		( ( $		( (

(Please see accompanying notes to the consolidated financial statements)

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (Cotn’d) (Expressed in Thousands of New Taiwan Dollars, Except for Earnings Per Common Share)

Profit attributable to: 8610 Owners of parent 8620 Non-controlling interests Comprehensive income attributable to: Owners of parent Non-controlling interests Earnings per share (Unit: NT$)(Note 29) 9750 Basic earnings per share 9850 Diluted earnings per share (Unit: NT$)			**For the years ended December 31 **	**For the years ended December 31 **	**For the years ended December 31 **	**For the years ended December 31 **	**For the years ended December 31 **	**For the years ended December 31 **	**For the years ended December 31 **
			2021					2020
		$ $	Amount 745,493 3,797 749,290 695,498 3,656 699,154 $ 1.37 $ 1.37			％ 14 -		Amount ％ $ 520,859 11 ( 27,753) ( 1) $ 493,106 10 $ 472,266 10 ( 27,903) ( 1) $ 444,363 9 $ 0.94 $ 0.94
						14 13 - 13		$
		$ $						$ (
								$
				$ 1.37

(Please see accompanying notes to the consolidated financial statements)

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Consolidated Statements of Changes in Equity (In Thousands of New Taiwan Dollars)

Balance at January 1, 2020 Profit (loss) for the year ended December 31, 2020 Other comprehensive income, for the year ended December 31, 2020 Total comprehensive income for the year ended December 31, 2020 Appropriation and distribution of retained earnings: Legal reserve appropriated Special reserve appropriated Cash dividends of ordinary share Disposal of investments in equity instruments designated at fair value through other comprehensive income Changes in non-controlling interests Cash dividends contributed by subsidiaries Balance at December 31, 2020 Balance at January 1, 2021 Profit for the year ended December 31, 2021 Other comprehensive income, for the year ended December 31, 2021 Total comprehensive income for the year ended December 31, 2021 Appropriation and distribution of retained earnings: Legal reserve appropriated Special reserve appropriated Cash dividends of ordinary share Capital reduction Difference between consideration and carrying-amount of subsidiaries acquired or disposed Cash dividends contributed by subsidiaries Loss of control over the subidiary Balance at December 31, 2021					Equity attributable to owne	Equity attributable to owne	rs of parent			Non-controlling interests $ 89,039 ( 27,753) ( 150) ( ( 27,903) - - - 418 413,265 ( 5,912) $ 468,907 $ 468,907 3,797 ( 141) 3,656 - - - - ( 40,188) ( 8,623) ( 7,400) $ 416,422	Total equity
			Capital surplus $ 20,769 - - - - - - - - - $ 20,769 $ 20,769 - - - - - - - 4,526) - - $ 16,243		Retained earnings Special reserve Unappropriated retained earnings $ 183,222 $ 669,748 - 520,859 - 70 - 520,929 - ( 37,423) 44,579 ( 44,579) - ( 556,790) - 19,492 - - - - $ 227,801 $ 571,377 $ 227,801 $ 571,377 - 745,493 - 603 - 746,096 - ( 54,042) 68,155 ( 68,155) - ( 445,432) - - - ( 78) - - - 55 $ 295,956 $ 749,821		Total other	equity interest	Total equity attributable to owners of parent $ 6,361,140 520,859 ( 48,593) 472,266 - - ( 556,790) - - - $ 6,276,616 $ 6,276,616 745,493 ( 49,995) 695,498 - - ( 445,432 ) ( 278,395) ( 4,604) - - $ 6,243,683
							Exchange differences on translation of foreign financial statements	Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income
				Legal reserve $ 147,303 - - - 37,423 - - - - - $ 184,726 $ 184,726 - - - 54,042 - - - - - - $ 238,768	Special reserve $ 183,222 - - - - 44,579 - - - - $ 227,801 $ 227,801 - - - - 68,155 - - - - - $ 295,956
						$ 669,748 520,859 70 520,929 ( 37,423) ( 44,579) ( 556,790) 19,492 - - $ 571,377 $ 571,377 745,493 603 746,096 ( 54,042) ( 68,155) ( 445,432) - ( 78) - 55 $ 749,821	($ 224,130) - ( 68,160) ( 68,160) - - - - - - ($ 292,290) ($ 292,290) - ( 50,620) ( 50,620) - - - - - - - ($ 342,910)	($ 3,671 ) - 19,497 19,497 - - - ( 19,492) - - $ (3,666) ($ 3,666) - 22 22 - - - - - - ( 55) ($ 3,699)			$ 6,450,179 493,106 48,743) 444,363 - - ( 556,790) 418 413,265 ( 5,912) $ 6,745,523 $ 6,745,523 749,290 ( 50,136) 48,509 - - ( 445,432) ( 278,395) ( 44,722) ( 8,623) ( 7,400) $ 6,660,105

(Please see accompanying notes to the consolidated financial statements)

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

(Expressed in Thousands of New Taiwan Dollars)

Cash flows (used in) from operating activities: Profit before tax Adjustments: Adjustments to reconcile profit (loss) Depreciation expense Amortization expense Net gain on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of profit of associates and joint ventures accounted for using equity method Loss on disposal of property, plant and equipment Loss on disposal of investments Expected credit gain Impairment loss on non-financial assets Rent reductions listed as other income Gain from lease modification Total adjustments to reconcile profit Changes in operating assets and liabilities: Changes in operating assets, net: Increase in current financial assets at fair value through profit or loss Increase in notes receivable Increase in accounts receivable Increase in accounts receivabledue from related parties Decrease (increase) in other receivable Increase in inventories Increase in biological assets Decrease in prepayments Decrease (increase) in other current assets Decrease in other operating assets Total changes in operating assets, net Changes in operating liabilities, net: (Decrease) increase in contract liabilities Decrease in notes payable Increase in accounts payable Increase in other payable Increase in receipts in advance Increase (decrease) in other current liabilities Decrease in non-current net defined benefit liability Total changes in operating liabilities Net changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Income taxes paid Net cash inflow from operating activities	For the years ended December 31	For the years ended December 31
	2021 $ 710,152 1,315,987 40,401 ( 40,997) 224,123 ( 5,682) ( 28,408) ( 467,644) 4,722 4,327 13,765 95,699 ( 248,391) ( 474) 907,428 ( 538,812) ( 8,000) ( 104,477) ( 10,581) 13,702 ( 59,321) ( 8,982) 595 458 2,358 ( 713,060) ( 2,405) ( 34,394) 67,104 60,498 716 6,001 ( 4,087) 93,433 ( 619,627) 287,801 997,953 ( 16,006) 981,947	2020
		$ 309,719 1,237,463 34,016 ( 68,993) 225,745 ( 14,953) ( 4,765) ( 349,775) 3,669 4,809 10,662 156,336 ( 174,520) ( 732) 1,058,962 ( 76,707) ( 54,326) ( 13,970) ( 774) ( 33,969) ( 73,092) ( 4,024) 11,735 ( 561) 10,588 ( 235,100) 12,526 ( 16,847) 8,954 52,996 8,416 ( 564) ( 4,835) 60,646 ( 174,454) 884,508 1,194,227 ( 24,810) 1,169,417

(Please see accompanying notes to the consolidated financial statements)

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows (Cotn’d)

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from (used in) investing activities: Proceeds from disposal of financial assets at fair value through other comprehensive income Proceeds from disposal of investments accounted for using equity method Net cash flow from acquisition of subsidiaries Proceeds from disposal of subsidiaries Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in refundable deposits Decrease in other receivables Acquisition of intangible assets Increase in other financial assets Increase in other non-current assets Interest received Dividends received Net cash flows from (used in) investing activities Cash flows from (used in) financing activities: Increase in short-term loans Increase (decrease) in short-term notes and bills payable Increase in long-term debt Increase in notes payable Decrease in guarantee deposits received Decrease in other payables due from related parties Payment of lease liabilities Increase in long-term notes payable Capital reduction Issuance cash dividends Interest paid Change in non-controlling interests Net cash flows used in financing activities Effect of exchange rate changes on cash and cash equivalents Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	For the years ended December 31	For the years ended December 31	For the years ended December 31
	2021		2020
	$ - - ( 44,722) 28,266 ( 230,410) 1,655 ( 21,925) - ( 11,026) ( 15,744) ( 46,726) 5,708 482,630 147,706 51,150 80,000 432,033 121,195 ( 289) - ( 943,703) 26,470 ( 278,395) ( 454,055) ( 250,833) - ( 1,216,427) ( 7,073) ( 93,847) 1,855,653 $ 1,761,806

(Please see accompanying notes to the consolidated financial statements)

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES

Notes To Consolidated Financial Statements For The Years Ended December 31, 2021 And 2020 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

1. Company history

Eastern Media International Corporation (the “Company”) was established on May 14, 1975 to promote the private port silo business, and its warehouse officially opened in 1980 with the completion of its silo. In order to enhance the operating performance and expand the business scope, the Company merged with Grain Union Transport Ltd. on May 15, 1989. The Company’s shares listed on the Taiwan Stock Exchange, classified in the shipping category, on September 25, 1995. As the proportion of revenue from shipping has declined years by years, and the proportion of revenue from trading has increased to more than 50% of overall revenue, the Company’ s stocks have changed classification to the retail sales category. The transfer was approved by the Taiwan Stock Exchange on July 1, 2014. In June 2019, the Group terminated all of the lease contracts of its shipping operations in advance. Since none of the operating segments owns more than 50% of overall revenue, the Company’s stocks have changed classification to other category, which was approved by the Taiwan Stock Exchange on June 1, 2021.

The Company's business development is mainly based on diversification. In addition to land development, grain trading and consumer product development and sales, the Company has diversified into new businesses such as cross-strait trade platform and multimedia shopping through its investment in subsidiaries since 2009.

The main businesses of the Company and its subsidiaries (the “Group”) include forwarding, loading and unloading cargo onto/from ships, the handling and operation of wharf and transit shed facilities, selling pet food and supplies, providing pet beauty service, video advertising services and the production of related shows.

2. Approval date and procedures of the consolidated financial statements

The consolidated financial statements were authorized for issuance by the Board of Directors on March 23, 2022.

3. New standards, amendments and interpretations adopted

• a. The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. (“FSC”) which have already been adopted.

The details of impact on the Group ’ s adoption of the new amendments beginning January 1, 2021 are as follows ：

• (a) Amendments to IFRS 16“Covid-19-Related Rent Concessions beyond June 30, 2021”

• A one-year extension to the practical expedient is available to lessees when accounting for COVID-19-related rent concessions reduce the lease payments originally due on or before June 30, 2022. The related accounting policy is explained in Note 4o.

The Group has elected to apply the amendments beginning January 1, 2021, with early adoption. No adjustment was made upon the initial application of the amendments. The amounts recognized in profit or loss for the year ended December

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31, 2021 was $248,391.

• (b) Other amendments

   - The following new amendments, effective January 1, 2021, do not have a significant impact on the Group’s consolidated financial statements:
  

  • Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9”

  • Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform—Phase 2”

• b.

• The impact of IFRS issued by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2022, would not have a significant impact on its consolidated financial statements:

• Amendments to IAS 16 “Property, Plant and Equipment—Proceeds before Intended Use”

• Amendments to IAS 37 “ Onerous Contracts － Cost of Fulfilling a Contract ”

• Annual Improvements to IFRS Standards 2018–2020

• Amendments to IFRS 3 “Reference to the Conceptual Framework”

• c. The impact of IFRS issued by IASB but not yet endorsed by the FSC

The Group is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its consolidated financial position and consolidated financial performance. The results thereof will be disclosed when the Group completes its evaluation.

The Group does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

• Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”

• IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”

• Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”

• Amendments to IAS 1 “Disclosure of Accounting Policies”

• Amendments to IAS 8 “Definition of Accounting Estimates”

• “

• • Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

4. Summary of significant accounting policies

The significant accounting policies presented in the consolidated financial statements are summarized below. Except for those specifically indicated, the following accounting policies were applied consistently throughout the periods presented in the consolidated financial statements.

a. Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations”) and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed and issued into effect by the Financial Supervisory Commission, R.O.C. (hereinafter referred to as “IFRS endorsed by the FSC”).

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b. Basis of consolidation

• (a) Basis of preparation

Except for the following significant accounts, the consolidated financial statements have been prepared on a historical cost basis:

• (a-1) Financial instruments at fair value through profit or loss are measured at fair value;

• (a-2) Financial assets at fair value through other comprehensive income are measured at fair value;

• (a-3) The defined benefit liabilities (assets) are measured at the plan assets less the present value of the defined benefit obligation, limited as explained in Note 4u,

• (b) Functional and presentation currency

The functional currency of each Group entity is determined based on the primary economic environment in which the entity operates. The consolidated financial statements are presented in New Taiwan Dollars (NTD), which is the Company’s functional currency. All financial information presented in NTD has been rounded to the nearest thousand.

c. Basis of consolidation

• (a) Principles for preparing consolidated financial statements

The consolidated financial statements comprise the Company and subsidiaries. Subsidiaries are entities controlled by the Group. The Group ‘controls’ an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intragroup balances and transactions, and any unrealized income and expenses arising from Intragroup transactions are eliminated in preparing the consolidated financial statements. The Group attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non controlling interests, even if this results in the non controlling interests having a deficit balance.

The Group prepares consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances. Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received will be recognized directly in equity, and the Group will attribute it to the owners of the parent.

When the Group loses control over a subsidiary, it derecognizes the assets (including any goodwill) and liabilities of the subsidiary, and any related non-controlling interests and other components of equity. Any interest retained in the former subsidiary is measured at fair value when control is lost, with the resulting gain or loss being recognized in profit or loss. The Group recognizes as gain or loss in profit or loss the difference between (i) the fair value of the consideration received as well as any investment retained in the former subsidiary at its fair value at the date when control is lost; and (ii) the assets (including any goodwill), liabilities of the subsidiary

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as well as any related non-controlling interests at their carrying amounts at the date when control is lost, as gain or loss in profit or loss. When the Group loses control of its subsidiary, it accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if it had directly disposed of the related assets or liabilities.

(b) List of subsidiaries in the consolidated financial statements:

Name of Investing Company	Subsidiary name	Nature of business	Shareholding ratio December 31, 2021 December 31, 2020 **Explanation **	Shareholding ratio December 31, 2021 December 31, 2020 **Explanation **
			December 31, 2021
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company EIC EIC EIC EIC EILF EILF TKLF TKLF ET New Media ET New Media ET New Media ET New Media ET New Media	Far Eastern Silo & Shipping (Panama) S.A. (FESS-Panama) Far Eastern Silo & Shipping International (Bermuda) Ltd. (FESS-Bermuda) Far Eastern Investment Co., Ltd. (EIC) Grand Richness Trading (Hong Kong) Co. (Grand Richness (Hong Kong)) Eastern International Lease Finance Co., Ltd. (EILF) Tung Kai Lease Finance Co., Ltd. (TKLF) ET New Media (ETtoday) Holdings Co., Ltd. (ET New Media) EHR Hotels & Resorts Group Yilan (EHR) Mohist Web Technology Co., Ltd. (MWT) Eastern Asset Co., Ltd. (Eastern Asset) Eastern International Lease Finance Co., Ltd. (EILF) Tung Kai Lease Finance Co., Ltd. (TKLF) EHR Hotels & Resorts Group Yilan (EHR) ET New Media (ETtoday) Holdings Co., Ltd. (ET New Media) Tung Kai Lease Finance Co., Ltd. (TKLF) EHR Hotels & Resorts Group Yilan (EHR) Eastern International Lease Finance Co., Ltd. (EILF) EHR Hotels & Resorts Group Yilan (EHR) Show Off Co., Ltd. (Show Off) ET Pet Co., Ltd (ET Pet) Dung sen shin guang yun Co., Ltd. (Dung sen shin guang yun) Dung sen dian jing yun Co., Ltd. (Dung sen dian jing yun) Dung sen shin wen yun Co., Ltd. (Dung sen shin wen yun)	Investing activities Investing activities Investing activities Investing activities Leasing Leasing Advertising Leisure site management, catering business Application services Real estate leasing Leasing Leasing Leisure site management, catering business Advertising Leasing Leisure site management, catering business Leasing Leisure site management, catering business Video advertising service Pet food and supplies and providing pet beauty service Audiovisual and singing, information leisure Amusementpark information leisure Video advertising service	100.00% 100.00% 97.90% 100.00% 53.77% 53.76% 89.20% 60.40% - % 55.00% 10.00% 10.00% 13.20% 1.05% 36.00% 13.20% 36.00% 13.20% - % 92.50% 100.00% 100.00% 100.00%	100.00% Note A 100.00% Note A 97.90% Note A 100.00% Note A 53.77% Note A 53.76% Note A 89.20% Note A 60.40% Note A 51.00% Note A (Note 7) 55.00% Note A (Note 2) 10.00% Note B 10.00% Note B 13.20% Note B 1.05% Note B 36.00% Note B 13.20% Note B 36.00% Note B 13.20% Note B 100.00% Note C (Note 4) 92.50% Note C 100.00% Note C 100.00% Note C 100.00% Note C

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Name of Investing Company	Subsidiary name	Nature of business	Shareholding ratio December 31, 2021 December 31, 2020 **Explanation **	Shareholding ratio December 31, 2021 December 31, 2020 **Explanation **
			December 31, 2021
ET New Media Dung sen min diau yun Co., Ltd. (Dung sen min diau yun) ET Pet Oscar Pet Co., Ltd. (Oscar) ET Pet Pet Kingdom Co., Ltd. (Pet Kingdom) ET Pet Kaou Sin Trading Co., Ltd. (Kaou Sin) FESS- Panama Grand Scene Media Corporation (GSMC-Cayman) FESS-Panama Eastern Media Communication (Hong Kong) Ltd. (Eastern Media Communication Hong Kong) FESS-Bermuda RICHNESS TRADING (SHANGHAI) CO.,LTD (RICHNESS TRADING (SHANGHAI)) Eastern Media Communication (Hong Kong) RICHNESS TRADING (SHANGHAI) CO.,LTD (RICHNESS TRADING (SHANGHAI)) RICHNESS TRADING (SHANGHAI) Shanghai Rich Industry Ltd. (Shanghai Rich) GSMC-Cayman GRAND SCENE TRADING (HONG KONG) LIMITED GRAND SCENE TRADING (HONG KONG) Nanjing Yun Fu Trading Ltd. (Nanjing Yun Fu) GRAND SCENE TRADING (HONG KONG) Eastern Biotechnology (Shanghai) (Eastern Food (Shanghai)) Ltd. (Eastern Biotechnology (Shanghai)) GRAND SCENE TRADING (HONG KONG) Eastern Enterprise Shanghai Logistics Ltd. Note A: The investee company is directly held o		Consulting management, market research and opinion poll Pet food and supplies and providing pet beauty service Pet food and supplies and providing pet beauty service Pet food and supplies and providing pet beauty service Investing activities Investing activities Cosmetics, jewelry, and household sundries wholesaling and support services Cosmetics, jewelry, and household sundries wholesaling and support services Producing and broadcasting TV programs, wholesale and retail groceries business Investing activities Wholesale trading Selling agricultural products, packaged food Container transport, domestic road freight agent ver 50% by the Company	100.00% 88.51% 100.00% 100.00% 100.00% 100.00% 8.77% 91.23% - % 100.00% 100.00% - % - %	100.00 % Note C (Note 6) 80.00% Note C (Note 8) 80.00% Note C (Note 8) 80.00% Note C (Note 8) 100.00% Note C 100.00% Note C 8.77% Note C 91.23% Note C 100.00% Note C (Note 3) 100.00% Note C 100.00% Note C - % Note C (Note 1) - % Note C (Note 5)

Note B: The investee company is directly held over 50% by the Group Note C: The investee company is directly held over 50% by the Company’s subsidiaries

• Note 1: GRAND SCENE TRADING (HONG KONG) disposed all of its shares of Eastern En and Eastern Biotechnology (Shanghai), with the completion of their share transfer registration procedures on January 20, 2020.

Note 2: On January 2, 2020, the Company’s Board of Directors resolved to invest $ 100,000 in Eastern Asset Co., Ltd., with a 100% shareholding, which was registered on February 24, 2020. It participated in the cash capital increase on March 10 and June 23 of the same year. The former did not increase the capital in proportion to the shareholding ratio, with an investment amount of $ 230,000, thereby reducing its shareholding to 55%. All registration procedures had been completed on April 6, 2020. The latter transaction increased its capital by $ 165,000, and all registration procedures had been completed on July 27, 2020.

Note 3: Shanghai Rich was liquidated on March 24, 2021.

• Note 4: Show off was dissolved on July 30, 2020. The processure of liquidation was finished on July 9, 2021.

Note 5: Enterprise Shanghai Logistics Ltd. has finished liquidation on July 20, 2020.

Note 6: Dung sen min diau yun was established on September 24, 2020. Note 7: The Company resolved on May 6, 2021 to dispose the entire interests in the subsidiary, MWT. The share transfer resgistriation procedures were finished on May 28, 2021.

Note 8: ET Pet resolved on November 4, 2021 to acquire the rest interests of 20% in subsidiaries, Oscar, Pet Kingdom and Kaou Sin at the amount of $90,082. Additionally, the interests in Oscar were acquired partially. The company acquired

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8.51% and 11.49% of the interests in December, 2021 and January, 2022, respectively.

(c) Subsidiaries excluded from the consolidated financial statements: None.

• d. Foreign currencies

• (a) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Group entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Nonmonetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Foreign currency differences arising on retranslation are recognized in profit or loss, except for those differences relating to fair value through other comprehensive income equity investment, which are recognized in other comprehensive income.

(b) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the presentation currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated into the presentation currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Group disposes of any part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non-controlling interests. When the Group disposes of only part of investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely in the foreseeable future. Exchange differences arising thereon form part of the net investment in the foreign operation and are recognized in other comprehensive income.

• e. Classification of current and non current assets and liabilities

An asset is classified as current under one of the following criteria and all other assets are classified as non-current.

• (a) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;

• (b) It is held primarily for the purpose of trading;

• (c) It is expected to be realized within twelve months after the reporting period; or

• (d)The asset is cash or a cash equivalent unless the asset is restricted from being exchanged

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or used to settle a liability for at least twelve months after the reporting period.

A liability is classified as current under one of the following criteria, and all other liabilities are classified as non-current.

An entity shall classify a liability as current when:

• (a) It is expected to be settled in the normal operating cycle;

• (b) It is held primarily for the purpose of trading;

• (c) It is due to be settled within twelve months after the reporting period; or

• (d) The Group does not have an unconditional right to defer settlement of at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by issuing equity instruments do not affect its classification.

Since the operating cycles of EILF and TKLF are more than one year, the classification of balance sheet accounts depends on whether their realization or settlement will be within or beyond one year from the balance sheet date.

• f. Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short-term cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

g. Financial instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Group becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(a) Financial assets

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

On initial recognition, financial assets are classified into the following categories: measured at amortized cost, fair value through other comprehensive income (FVOCI) and fair value through profit or loss (FVTPL). Financial assets are not reclassified subsequent to their initial recognition unless the Group changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

(a-1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL ：

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• it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

(a-2) Fair value through other comprehensive income (FVOCI)

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL ：

• it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

• its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Group may irrevocably elect to present subsequent changes in the investment’s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income is recognized in profit or loss on the date on which the Group’s right to receive payment is established.

(a-3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL, including derivative financial assets. On initial recognition, the Group may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

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(a-4) Business model assessment

The Group makes an assessment of the objective of the business model in which a financial asset is held at portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes ：

• the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether management ’ s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realizing cash flows through the sale of the assets;

• how the performance of the portfolio is evaluated and reported to the Group’s management;

• the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed;

• �

• how managers of the business are compensated e.g. whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and

• the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, and are consistent with the Group’s continuing recognition of the assets.

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.

• (a-5) Assessment whether contractual cash flows are solely payments of principal and interest

For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial assets on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs, as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Group considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Group considers ：

• contingent events that would change the amount or timing of cash flows ；

• terms that may adjust the contractual coupon rate, including variable rate features ；

• prepayment and extension features ； and

• ’

• • terms that limit the Group s claim to cash flows from specified assets (e.g. non recourse features).

(a-6) Impairment of financial assets

The Group recognizes loss allowances for expected credit losses (ECL) on

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financial assets measured at amortized cost (including cash and cash equivalents, amortized costs, notes and trade receivable, other receivable, refundable deposits and other financial assets).

The Group measures loss allowances at an amount equal to lifetime expected credit loss (ECL), except for the following which are measured as 12-month ECL ：

• debt securities that are determined to have low credit risk at the reporting date ； and

• other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for trade receivables and contract assets are always measured at an amount equal to lifetime ECL.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Group considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Group’s historical experience and informed credit assessment as well as forward-looking information.

The Group considers a debt security to have low credit risk when its credit risk rating is equivalent to the globally understood definition of ‘investment grade which is considered to be BBB or higher per Standard & Poor’s, Baa3 or higher per Moody’s or twA or higher per Taiwan Ratings.

The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.

The Group considers a financial asset to be in default when the financial asset is more than 90 days past due or the debtor is unlikely to pay its credit obligations to the Group in full.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Group is exposed to credit risk.

ECLs are a probabilityweighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e. the difference between the cash flows due to the Group in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

At each reporting date, the Group assesses whether financial assets carried at amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial assets is credit-impaired includes the following

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observable data ：

• significant financial difficulty of the borrower or issuer ；

• a breach of contract such as a default or being more than 90 days past due ；

• the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider ；

• it is probable that the borrower will enter bankruptcy or other financial reorganization ； or

• the disappearance of an active market for a security because of financial difficulties.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets. For debt securities at FVOCI, the loss allowance is recognized in other comprehensive income instead of reducing the carrying amount of the asset. The Group recognizes the amount of expected credit losses (or reversal) in profit or loss, as an impairment gain or loss.

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Group individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Group expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Group’s procedures for recovery of amounts due.

(a-7) Derecognition of financial assets

The Group derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Group neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Group enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

(b) Financial liabilities and equity instruments

(b-1) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also

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recognized in profit or loss.

(b-2) Derecognition of financial liabilities

The Group derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Group also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

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

(b-3) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Group currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

h. Program to be broadcast

The program to be broadcast is a video to be broadcast, a program to be broadcast, and a program to be produced. The videos to be broadcast and the programs to be broadcast are recognized at the original cost, and measured at the lower of unamortized cost and net realizable value. The programs to be produced are recognized on the base of actual input cost, and measured at the lower of cost and net realizable value.

• i. Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories includes expenditure incurred in acquiring the inventories and capitalized borrowing costs incurred in bringing them to their existing location and condition.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expenses.

• j. Biological assets

Biological assets shall be measured at fair value, except when the fair value of the biological assets determined by the market cannot be obtained and the alternative estimate of fair value is unreliable, then the cost is measured by the accumulated depreciation. The cost of raising the cost and other related costs are capitalized in the current period, and the impairment test is carried out regularly every year, and the impairment loss is recognized for objective evidence of impairment.

• k. Investment subsidiary

Goodwill is measured at the consideration transferred less the amounts of the identifiable assets acquired and liabilities assumed (generally at fair value) at the acquisition date. If the amount of net assets acquired and liabilities assumed exceeds the acquisition price, the Group reassesses whether it has correctly identified all of the assets acquired and liabilities assumed, and recognizes a gain for the excess.

All transaction costs relating to a business combination are recognized immediately as expenses when incurred, except for the issuance of debt or equity instruments.

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The Group shall measure any non-controlling interests in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets, if the non-controlling interests are present ownership interests and entitle their holders to a proportionate share of the entity’s net assets in the event of liquidation. Other non controlling interests are evaluated by their fair value or by another basis permitted by the IFRSs endorsed by the FSC.

The change in ownership of the subsidiaries not causing losing control, are recognized as equity transaction. The Group recognizes directly in equity any difference between the carrying-amount of the investment and the fair value of the consideration paid or received.

• l. Non-current assets held for sale & Discontinued operations

• (a) Non-current assets held for sale

Non-current assets or disposal groups comprising assets and liabilities that are highly probable to be recovered primarily through sale rather than through continuing use are reclassified as held for sale. Immediately before classification as held for sale, the assets, or components of a disposal group are re-measured in accordance with the Group’s accounting policies. Thereafter, generally the assets or disposal group are measured at the lower of their carrying amount and fair value less costs to sell.

Any impairment loss on a disposal group is first allocated to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated assets not within the scope of IAS 36 – Impairment of Assets. Such assets will continue to be measured in accordance with the Group’s accounting policies.

Impairment losses on assets initially classified as held for sale and any subsequent gains or losses on re-measurement are recognized in profit or loss. Gains are not recognized in excess of the cumulative impairment loss that has been recognized. Once classified as held for sale, intangible assets and property, plant and equipment, are no longer amortized or depreciated, and any equity accounted investee is no longer equity accounted.

• (b) Discontinued operations

A discontinued operation is a component of the Group’s business that either has been disposed, or is classifies as held for sale, and

(b-1) represents a separate major line of business or geographic area of operations; (b-2) is part of a single co ordinated plan to dispose of a separate major line of business or geographic area of operations; or

(b-3) is a subsidiary acquired exclusively with a view to resale.

Classification as a discontinued operation occurs at the earlier of disposal or when the operation meets the criteria to be classified as held for sale.

• m. Investment in associates

Associates are those entities in which the Group has significant influence, but not control, over the financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of investment includes transaction costs. The carrying amount of investment in associates includes goodwill arising from the acquisition less any accumulated impairment losses.

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The consolidated financial statements include the Group’s share of the profit or loss and other comprehensive income of those associates, after adjustments to align their accounting policies with those of the Group, from the date on which significant influence commences until the date on which significant influence ceases. The Group recognizes any changes of its proportionate share in the investee within capital surplus, when an associate’s equity changes due to reasons other than profit and loss or comprehensive income, which did not result in changes in actual significant influence.

Gains and losses resulting from transactions between the Group and an associate are recognized only to the extent of unrelated Group’s interests in the associate.

When the Group’s share of losses of an associate equals or exceeds its interests in an associate, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

The Group discontinues the use of the equity method and measures the retained interest at fair value from the date when its investment ceases to be an associate. The difference between the fair value of retained interest and proceeds from disposing, and the carrying amount of the investment at the date the equity method was discontinued is recognized in profit or loss. The Group accounts for all the amounts previously recognized in other comprehensive income in relation to that investment on the same basis as would have been required if the associates had directly disposed of the related assets or liabilities. If a gain or loss previously recognized in other comprehensive income would be reclassified to profit or loss (or retained earnings) on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) (or retained earnings) when the equity method is discontinued.

When the Group subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment will differ from the amount of the Group’s proportionate interest in the net assets of the associate. The Group records such a difference as an adjustment to investments, with the corresponding amount charged or credited to capital surplus. The aforesaid adjustment should first be adjusted under capital surplus. If the capital surplus resulting from changes in ownership interest is not sufficient, the remaining difference is debited to retained earnings. If the Group’s ownership interest is reduced due to the additional subscription to the shares of the associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate will be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities.

• n. Property, plant and equipment

• (a) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs, less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

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Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

• (b) Subsequent cost

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

• (c) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight-line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

Buildings 1 ～ 55 years ～ Machinery and equipment 2 7 years ～ Transportation equipment 3 20 years ～ Leasehold improvements 1 20 years ～ Miscellaneous equipment 1 20 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

• o. Leases

At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

• (a) As a leasee

The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

• － fixed payments, including in-substance fixed payments;

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• － variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

• － amounts expected to be payable under a residual value guarantee; and

• － payments for purchase or termination options that are reasonably certain to be exercised.

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

• － there is a change in future lease payments arising from the change in an index or rate; or

• － ’ there is a change in the Group s estimate of the amount expected to be payable under a residual value guarantee; or

• － there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset, or

• － there is a change of its assessment on whether it will exercise an extension or termination option; or

• － there is any lease modifications

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Group accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Group presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

The Group has elected not to recognize right-of-use assets and lease liabilities for short-term leases of office equipment that have a lease term of 12 months or less and leases of low-value assets, including IT equipment. The Group recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

As a practical expedient, the Group elects not to assess whether all rent concessions that meets all the following conditions are lease modifications or not:

• － the rent concessions occurring as a direct consequence of the COVID 19 pandemic;

• － the change in lease payments that resulted in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change;

• － any reduction in lease payments that affects only those payments originally due on, or before, June 30, 2022; and

• － there is no substantive change in other terms and conditions of the lease.

In accordance with the practical expedient, the effect of the change in the lease liability is reflected in profit or loss in the period in which the event or condition that triggers the rent concession occurs.

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(b) As a leasor

When the Group acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Group is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease. If a head lease is a short-term lease to which the Group applies the exemption described above, then it classifies the sub-lease as an operating lease.

• p. Intangible assets

• (a)Recognition and measurement

Goodwill arising on the acquisition of subsidiaries is measured at cost, less accumulated impairment losses.

Other intangible assets, including customer relationships, patents and trademarks, that are acquired by the Group and have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

• (b) Subsequent expenditure

Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the specific asset to which it relates. All other expenditures, including expenditure on internally generated goodwill and brands, are recognized in profit or loss as incurred.

• (c) Amortization

Amortization is calculated over the cost of the asset, less its residual value, and is recognized in profit or loss on a straight-line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they are available for use.

The estimated useful lives for current and comparative periods are as follows:

Trademark rights 2～3 years
Computer software 1～10 years
Copyright 3 years
Patents 3 years
Client rights and Supplier contract 10 years

Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

• q. Impairment of non-financial assets

At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other than inventories and deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually for impairment.

For impairment testing, assets are grouped together into the smallest group of assets that

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generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

r. Revenue recognition

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Group’s main types of revenue are explained below.

(a) Sale of goods

The Group is involved in TV shopping channels and E-commerce portal services, and sales of pet food and supplies and electronic tickets. Revenue can be reliably measured when the income is transferred, and future economic benefits are likely to be recognized as income when flowing into the company.

(b) Rending of services

The Group is involved in loading and unloading, warehousing, ticket system construction and integration services, and recognizes relevant revenue during the financial reporting period of providing labor services.

In case of fixed-price contracts, the customer pays the fixed amount based on a payment schedule. If the services rendered by the Group exceed the payment, a contract asset is recognized. If the payments exceed the services rendered, a contract liability is recognized.

(c) Advertisement revenue

Advertising revenue is deducted from the agency commission and is recognized at the completion of the broadcast.

• (d) Program authorization revenue

The program authorization revenue is recognized on an accrual basis based on the substance of the contract, or is recognized when the relevant program is delivered.

• (e) Installment sales interest income

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The Group engages in installment sales, wherein the amount exceeds the cash sales price, resulting in the difference to be recognized as unrealized interest income deducted to installment notes and accounts receivable, which interest is accounted for annually using the interest method over the installment period. The installment sales are transferred to the owner after the price has been fully paid.

• (f) Receivables transfer

The Group also operates the business of accounts receivable financing. Transfers of receivables should be considered as collateral for loans except for those conforming to all the following conditions as purchase of receivables.

• (f-1) A transfer of financial assets or a portion of a financial asset in which the transferor surrenders control over those financial assets is regarded as a sale to the extent that consideration other than beneficial interests in the transferred assets is received in exchange.

• (f-2) The rights to accounts receivable are derecognized after deducting the estimated charges or losses in a commercial dispute when all of the following conditions are met.

  • (f-2-1) The rights to accounts receivable have been isolated from the transferor as they are put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership.

  • (f-2-2) Each transferee has the right to pledge or exchange the rights to the accounts receivable, and no condition prevents the transferee (or holder) from taking advantage of its right to pledge or exchange and provides more than a trivial benefit to the transferor.

  • (f-2-3) The transferor does not maintain effective control over the rights to the accounts receivable claims through either:

    • An agreement that both entitles and obligates the transferor to repurchase or redeem them before their maturity, or

    • The ability to unilaterally cause the holder to return specific rights to the accounts receivable.

• s. Contract costs

Costs to fulfil a contract

If the costs incurred in fulfilling a contract with a customer are not within the scope of another Standard (for example, IAS 2 Inventories, IAS 16 Property, Plant and Equipment or IAS 38 Intangible Assets), the Group recognizes an asset from the costs incurred to fulfil a contract only if those costs meet all of the following criteria:

• (a) the costs relate directly to a contract or to an anticipated contract that the Group can specifically identify;

• (b) the costs generate or enhance resources of the Group that will be used in satisfying (or in continuing to satisfy) performance obligations in the future; and

• (c) the costs are expected to be recovered.

General and administrative costs, costs of wasted materials, labor or other resources to fulfil the contract that were not reflected in the price of the contract, costs that relate to satisfied performance obligations (or partially satisfied performance obligations), and costs for which the Group cannot distinguish whether the costs relate to unsatisfied performance obligations or to satisfied performance obligations (or partially satisfied performance obligations), the Group recognizes these costs as expenses when incurred.

～ 33 ～

t. Government subsidies

The Group recognizes an unconditional government grant in profit or loss as other income when the grant becomes receivable. Other government grants related to assets are initially recognized as deferred income at fair value if there is reasonable assurance that they will be received and the Group will comply with the conditions associated with the grant; they are then recognized in profit or loss as other income on a systematic basis over the useful life of the asset. Grants that compensate the Group for expenses or losses incurred are recognized in profit or loss on a systematic basis in the periods in which the expenses or losses are recognized.

• u. Employee benefits

• (a) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

• (b) Defined benefit plans

The Group’s net obligation in respect of defined benefit plans is calculated by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Group, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Group determines the net interest expense (income) on the net defined benefit liability for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then net defined benefit liability. Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

• (c) Short-term employee benefits

Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the related service is provided.

A liability is recognized for the amount expected to be paid under short-term cash bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee, and the obligation can be estimated reliably.

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• v. Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses that are related to business combinations or recognized directly in equity or other comprehensive income all current and deferred taxes are recognized in profit or loss.

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received. It is measured using tax rates enacted or substantively enacted at the reporting date.

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred taxes are not recognized except for the following:

• (a) temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profits (losses) at the time of the transaction;

• (b)temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

• (c) taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized; such reductions are reversed when the probability of future taxable profits improves.

Deferred taxes are measured at tax rates that are expected to be applied to temporary differences when they reserve, using tax rates enacted or substantively enacted at the reporting date.

Deferred tax assets and liabilities are offset if the following criteria are met:

• (a) the Group has a legally enforceable right to set off current tax assets against current tax liabilities; and

• (b) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

  • (b-1) the same taxable entity; or

  • (b-2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

• w. Business combination

The Group accounts for business combinations using the acquisition method. The goodwill arising from an acquisition is measured as the excess of (i) the consideration transferred (which is generally measured at fair value) and (ii) the amount of noncontrolling interest in the acquiree, both over the identifiable net assets acquired at the acquisition date. If the amount calculated above is a deficit balance, the Group recognized that amount as a gain on a bargain purchase in profit or loss immediately after reassessing

～ 35 ～

whether it has correctly identified all of the assets acquired and all of the liabilities assumed.

All acquisition-related transaction costs are expensed as incurred, except for the issuance of debt or equity instruments.

For each business combination, the Group measures any non-controlling interests in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets, if the non-controlling interests are present ownership interests and entitle their holders to a proportionate share of the Group’s net assets in the event of liquidation. Other components of non-controlling interests are measured at their acquisition-date fair values, unless another measurement basis is required by the IFRSs endorsed by the FSC.

x. Earnings per share

The Group discloses the Company’s basic and diluted earnings (loss) per share attributable to ordinary shareholders of the Company. Basic earnings per share is calculated as the profit attributable to the ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding. Diluted earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares.

y. Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Each operating segment consists of standalone financial information.

5. Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

The preparation of the consolidated financial statements in conformity with the Regulations and the IFRSs endorsed by the FSC requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

The management continues to monitor the accounting estimates and assumptions. The management recognizes any changes in accounting estimates during the period and the impact of those changes in accounting estimates in the following period.

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements is as follows:

• a. The Group is the single largest shareholder of an investee with less than 50% of the voting rights of it and concludes that the Group does not control but has significant influence over it.

• It is stated in Note 13 that the Group is the single largest shareholder of EHS with 25.87% of the voting rights of theinvestee. Considering the size of the Group’s holding of voting rigts relative to the size and dispersion of holdings of the other shareholders and the voting patterns at previous shareholders’ meetings, which indicate that other shareholders

～ 36 ～

are not passive, the Group is not able to appoint more than half of the members of EHS’s governing body. Therefore, the Group cannot direct the relevant activities of EHS and does not control EHS. Management of the Group considered the Group as exercising significant influence over EHS and; therefore, classified it as an associate of the Group.

It is stated in Note13 that the Group is the single largest shareholder of Natural Beauty with 30% of the voting rights of the investee. After considering Natural Beauty is a listed company in Hong Kong, the independent executive directors and non-executive directors have the right to excute their own duty. Furthermore, the board of Natural Beauty directs the relevant activities, and none shareholder is able to appoint enough board members to direct the board’s decision. Therefore, the Group cannot direct the relevant activities of Natural Beauty and does not control Natural Beauty. Management of the Group considered the Group as exercising significant influence over Natural Beauty and; therefore, classified it as an associate of the Group.

b. Lease term

The Group determines the lease term as the non-cancellable period of the lease, together with periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option, and periods covered by an option to terminate the lease if the lessee is reasonably not to exercise that option. In assessing whether a lessee is reasonably to exercise the options, the Group considers all relevant facts and circumstances that create an economic incentive for the lessee. The Group reassesses whether it is reasonably certain to exercise an extension option or not to exercise the option upon the occurrence of either a significant event or a significant change in circumstances that is within the control of the lessee. If there is a change in the lease term, the Group recognizes the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. Please refer to Note 18 and 25.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as follows. Those assumptions and estimation have been updated to reflect the impact of COVID 19 pandemic:

a. The loss allowance of trade receivables

The Group has estimated the loss allowance of trade receivables that is based on the risk of a default occurring and the rate of expected credit loss. The Group has considered historical experience, current economic conditions and forward-looking information at the reporting date to determine the assumptions to be used in calculating the impairments and the selected inputs. The relevant assumptions and input values, please refer to Note 9.

• b. Valuation of inventories

As inventories are stated at the lower of cost or net realizable value, the Group estimates the net realizable value of inventories for obsolescence and unmarketable items at the end of the reporting period and then writes down the cost of inventories to net realizable value. The net realizable value of the inventory is mainly determined based on assumptions as to future demand within a specific time horizon. Due to the rapid industrial transformation, there may be significant changes in the net realizable value of inventories. Please refer to Note 11 for further description of the valuation of inventories.

• c. Impairment of property, plant and equipment, and right-of-use assets

In the process of evaluating the potential impairment, the Group is required to make subjective judgments in determining the independent cash flows, useful lives, expected

～ 37 ～

future income and expenses related to the specific asset groups considering of the nature of the industry. Any changes in these estimates based on changed economic conditions or business strategies and could result in significant impairment charges or reversal in future years. Refer to Note 17 and 18 for further description of the key assumptions used to determine the recoverable amount.

d. Impairment of goodwill

The assessment of impairment of goodwill requires the Group to make subjective judgments to identify CGUs, allocate the goodwill to relevant CGUs, and estimate the recoverable amount of relevant CGUs. Refer to Note 19 for further description of the impairment of goodwill.

• e. Measurement of defined benefit obligations

Accrued pension liabilities and resulting pension expenses under defined benefit pension plans are calculated using the Projected Unit Credit Method. Actuarial assumptions comprise the discount rate, rate of employee turnover, future salary increase rate, etc. Changes in economic circumstances and market conditions will affect these assumptions and may have a material impact on the amount of the expense and the liability. Refer to Note 26 for further description of the actuarial assumptions and sensitivity analysis.

f. Revenue recognition

The Group records a refund liability using the expected value or the most likely amount for estimated future returns and other allowances in the same period the related revenue is recorded. Refund liability for estimated sales returns and other allowances is generally made and adjusted based on historical experience, market and economic conditions, and any other known factors that would significantly affect the allowance. The adequacy of estimations is reviewed periodically. The fierce market competition and evolution of technology could result in significant adjustments to the estimation made.

g. Recognition of deferred tax assets

As of December 31, 2021 and 2020, the carrying amounts of deferred tax assets in relation to unused tax losses were $445,416 and $408,009, respectively. As of December 31, 2021 and 2020, no deferred tax assets have been recognized on tax losses of $1,292,410 and $1,663,653, respectively, due to the unpredictability of future profit streams. The realizability of deferred tax assets mainly depends on whether sufficient future profit or taxable temporary differences will be available. In cases where the actual future profit generated is less than expected, a material reversal of deferred tax assets may arise, which would be recognized in profit or loss for the period in which such a reversal takes place.

The Group’s accounting policies include measuring financial and nonfinancial assets and liabilities at fair value through profit or loss.

The Group strives to use market observable inputs when measuring assets and liabilities. Different levels of the fair value hierarchy to be used in determining the fair value of financial instruments are as follows:

• Level 1: quoted prices (unadjusted) in active markets for identifiable assets or liabilities.

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

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• Level 3: inputs for the asset or liability that are not based on observable market data.

For any transfer within the fair value hierarchy, the impact of the transfer is recognized on the reporting date. Please refer to the following notes for assumptions used in measuring fair value:

• (a) Note 17, Property, plant and equipment.

• (b) Note 33, Financial instruments.

6.

Cash and cash equivalents

Cash on hand Cash in banks Cash equivalents	December 31, 2021 $ 15,410 979,918 766,478 $ 1,761,806	December 31, 2020 11,835 1,267,588 576,230 1,855,653

• a. Bank time deposits whose original maturity date exceeds three months are classified as other current financial assets. The deposit accounts of $17,715, and $2,278 which did not meet the definition of cash and cash equivalents, were classified as other current financial assets for December 31, 2021 and 2020, respectively.

• b. Please refer to Note 33 for the fair value sensitivity analysis and interest rate risk of the financial assets and liabilities.

7. Financial assets at fair value through profit or loss

Financial assets designated as at fair value through profit or loss: Non-derivative financial assets Stocks listed on domestic markets

December 31, 2021 $ 961,420	December 31, 2020	December 31, 2020
		$ 381,611

• a. Please refer to Note 32 for the remeasurement of fair value.

• b. For the years ended December 31, 2021 and 2020, the dividends from financial assets designated as at fair value through profit or loss were $26,895 and $4,167, respectively.

• c. As of December 31, 2021, the amount of $440 outstanding (recorded as other receiveables) for the dividedns from financial assets at fair value through profit or loss had been fully received by the Group as of the reporting date.

• d. As of December 31, 2020, the amount of $6,628 outstanding for the disposal of financial assets at fair value through profit or loss had been fully received.

• e. No financial assets were pledged as collateral on December 31, 2021 and 2020, respectively.

8. Financial assets at fair value through other comprehensive income

～39～ December 31, 2021 Equity investments at fair value through other comprehensive income: Unlisted common shares domestic Company $ 7,510	December 31, 2021	December 31, 2021	December 31, 2020	December 31, 2020
		$ 7,510		$ 8,104

• a. Equity investments at fair value through other comprehensive income

The Group designated the investments shown above as equity securities as at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for long-term for strategic purposes.

For the years ended December 31, 2021 and 2020, the Group recognized the dividends of $1,513 and $598 related to equity instruments measured at fair value through other comprehensive income, respectively.

On December 25, 2020, the consolidated subsidiary- EIC has sold all of its shares held in Skyasia Media Inc., at fair value of $24,925. The Group realized a gain of $19,910, which was recognized as other comprehensive income, and thereafter, was reclassified to retained earnings with the company equity ownership.

There were no disposals of strategic investments and transfers of any cumulative gain or loss within equity relating to these investments as of December 31, 2021.

• b. For credit risk and market risk; please refer to Note 33 and 34.

• c. No financial assets mentioned above were pledged as collateral.

9. Notes and accounts receivable (including related parties)

Notes receivable Installment notes receivable Accounts receivable Less: Allowance for doubtful accounts Unrealized interest revenue	December 31, 2021 $ 5,785 131,397 497,999 ( 52,019) ( 11,051) $ 572,111	December 31, 2020
		$ 4,406 121,735 395,034 ( 39,803) ( 7,856) $ 473,516

The Group applies the simplified approach to provide for its expected credit losses, i.e., the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, accounts receivable have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information, including macroeconomic and relevant industry information.

The loss allowance provision in warehousing segment was determined as follows:

Current Current		December 31, 2021
	Gross carrying amount $ 16,065	Weighted average loss rate -% December 31, 2020		Loss allowance provision
				$ -
	Gross carrying amount $ 11,148	Weighted average loss rate - %		Loss allowance provision
				$ -

～ 40 ～

The loss allowance provision in trading segment was determined as follows:

Current More than 91 days past due Current More than 91 days past due		December 31, 2021
	Gross carrying amount $ 20,328 782 $ 21,110	Weighted average loss rate - % 100.00 % December 31, 2020		Loss allowance provision
				$ - 782
				$ 782
	Gross carrying amount $ 8,693 438 $ 9,131	Weighted average loss rate - % 100.00 %		Loss allowance provision
				$ - 438
				$ 438

The loss allowance provision in media segment was determined as follows:

Current 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due More than 91 days past due Current 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due More than 91 days past due The loss allowance provision in Current 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due More than 91 days past due			December 31, 2021
		Gross carrying amount $ 408,469 10,071 374 36 1,745 $ 420,695	Weighted average loss rate 0.00~0.21 % 0.00~11.39 % 0.00~26.54 % 0.00~78.62 % 100.00 % December 31, 2020		Loss allowance provision
					$ 855 1,145 99 28 1,745 $ 3,872
		Gross carrying amount Weighted average loss rate Loss allowance provision $ 306,160 0.00~0.24 % $ 747 4,290 0.00~12.08 % 518 2,715 0.00~32.34 % 878 - 0.00~78.62% - 1,393 100.00 % 1,393 $ 314,558 $ 3,536 other segments was determined as follows: December 31, 2021			Loss allowance provision
		Gross carrying amount $ 120,537 - - - 3 $ 120,540	Weighted average loss rate 0.00~ 1.25% 5.00~26.27% 5.00~28.33% 5.00~30.00% 100.00 %		Loss allowance provision (Note)
					$ 537 - - - 3 $ 540

～ 41 ～

December 31, 2020

			December 31, 2020
Current 1 to 30 days past due 31 to 60 days past due 61 to 90 days past due More than 91 days past due		Gross carrying amount $ 144,836 85 136 135 446 $ 145,638	Weighted average loss rate 0.03~1.25% 5.00~26.27% 5.00~34.89% 5.00~75.26% 100.00%		Loss allowance provision (Note)
					$ 867 9 48 102 446 $ 1,472

Note: As of December 31, 2021 and 2020, the receivables amounted to $45,720 and $32,844 were unrecoverable due to the financial difficulty of the customers. Therefore, the Group had recognized the allowance for doubtful accounts for all of its receivables.

The movement in the allowance for notes and accounts receivable was as follows:

Balance on January 1 Recognition of impairment losses Amounts written off Loss of control of the subsidiary Balance onDecember31	For the years ended December 31	For the years ended December 31
	2021 $ 39,803 13,437 ( 53) ( 1,168) $ 52,019	2020
		$ 29,563 10,662 ( 422 ) - $ 39,803

No financial assets mentioned above were pledged as collateral.

10. Other receivables and other notes receivable (including related parties)

Other accounts receivable—loans to other parties Other accounts receivable—others Less: Loss allowance	December 31, 2021 $ 30,000 66,561 ( 1,817) $ 94,744		December 31, 2020
			$ 30,000 72,705 ( 1,697) $ 101,008

As of December 31, 2021 and 2020, the aging analysis of other receivables, which were past due but not impaired, was as follows:

t due but not impaired, was as follows:
Past due more than 365 days	December 31, 2021 $ -

For credit risk and market risk; please refer to Note 33 and 34.

11. Inventories

ventories
Goods held for sale Spare programs Programs in progress Raw materials and others (including fuel)		December 31, 2021 $ 329,335 15,264 7,632 29,066 $ 381,297		December 31, 2020
				$ 313,012 5,851 - 28,046 $ 346,909

a. For the years ended December 31, 2021 and 2020, due to the decrease in the net realizable value of inventories, the loss on inventory valuation the Group recognized

～ 42 ～

was $471 and $231.

• b. No inventories were pledged as collateral on December 31, 2021 and 2020, respectively.

12. Non-current assets held for sale (or discontinued operations)

• a. Within a year’s time, the Group expected to dispose all of its shares in its fully owned subsidiaries, Eastern Biotechnology (Shanghai), wherein the disposal is to be recognized as non-current assets held for sale (or discontinued operation). The disposal of Eastern Biotechnology (Shanghai) has been completed on January 20, 2020.

• b. No non-current assets held for sale were pledged as collateral.

• c. For the registration of share transfer; please refer to Note 16.

13. Investments accounted for using equity method

• a. The Group’s financial information for investments accounted for using the equity method at the reporting date was as follows:

Natural Beauty bio-technology Limited (Natural Beauty) Eastern Home Shopping & Leisure Co., Ltd (EHS) EHK E&S Co., Ltd. Jiangsu Sen Fu Da Media Technology Co., Ltd.		December 31, 2021 $ 1,905,459 504,022 - - $ 2,409,481	December 31, 2020
			$ 1,951,807 491,228 - - $ 2,443,035

• b. Affiliates which are material to the Group consisted of the following:

Affiliate Name	Within the Group Nature of Relationship	Main operating location	Proportion of shareholding and voting rights
			December 31, 2021 December 31, 2020
Natural Beauty EHS	Sales of beauty and cosmetic products and providing beauty service Wholesale and retail of various commodities, materials and equipment	Taiwan and China Taiwan, Hong Kong and China	30.00% 30.00% 25.87% 25.87 %

• (a) Natural Beauty Bio-Technology Limited

Natural Beauty Bio-Technology Limited (“Natural Beauty”) was one of the listing companies in Hong Kong Exchanges and Clearing Limited (“Hong Kong Exchange”). Its fair value is as follows:

Fair value		December 31, 2021 $ 1,215,030		December 31, 2020
				$ 1,433,971

The Audit Committee of Natural Beauty received a letter from its CPA in March, 2020, requesting it to hire an independent forensic accounting firm to investigate some items such as sales revenue and account receivables collection in the 2019 financial statements. Due to the wide-ranging content of the investigation, Natural Beauty applied for a temporary suspension of trading on the Hong Kong Exchange starting at 9 am on March 25, 2020. Natural Beauty

～ 43 ～

fulfilled all the resumption conditions instructed by the Hong Kong Exchange on February 10, 2021, and resumed trading on February 11, 2021. The fair value of Natural Beauty on December 31, 2020 is calculated based on the suspension price on March 25, 2020.

Moreover, the forensic report of the forensic accounting firm was sent to the Audit Committee of Natural Beauty for confirmation on July 6, 2020. The Audit Committee believed that the forensic accountant had completed all the work required by the CPA and stated that there was no irregularity in the accounting of Natural Beauty. However, the CPA was not completely satisfied with the conclusion of the forensic accountant and requested further investigation. However, after the Natural Beauty Audit Committee and the Board of Directors reviewed the investigation report of the forensic accountants, they found its conclusions to be quite complete and there is no need for further investigation. The response to the CPA opinion was announced on July 27, 2020. The appointment of the CPA was to be terminated on July 31, 2020. On August 14, 2020, Natural Beauty had completed the appointment of a successor CPA, the appointment of a successor CPA issued 2019 financial statements on November 20, 2020.

The following consolidated financial information of significant affiliates had been adjusted according to individually prepared IFRS financial statements of these affiliates:

these affiliates:
		December 31,		December 31,
		2021		2020
Current assets		$ 1,598,223	$	1,470,963
Non-current assets		1,703,915		1,584,864
Liabilities	( 967,194)		(	810,784)
Net assets		$ 2,334,944	$	2,245,043
Net assets attributable
to investee		$ 2,334,944	$	2,245,043
		For the Years Ended	December 31
		2021		2020
Operating revenue	$	1,757,635	$	1,564,377
Net income	$	127,059	$	29,431
Other comprehensive income		62,804		136,036
Total comprehensive income	$	189,863	$	165,467
Comprehensive income (loss)
attributable to investee	$	189,863	$	165,467

～ 44 ～

Share of net assets attributable to the Group on January 1 Comprehensive income (loss) attributable to the Group Dividends received from assiociates Effect of exchange rate fluctuations Share of net assets attributable to the Group on December 31 Add: Goodwill Trademark Property, plant and equipment Other intangible assets in useful life(ie. Membership and patent etc.) Effect of exchange rate changes Less: adjustment for inventories Book value of net assets attributable to the Group on December 31	For the Years Ended December 31	For the Years Ended December 31
	2021 $ 673,513 56,959 ( 6,471 ) ( 23,518) 700,483 305,240 275,864 465,145 169,415 ( 706 ) ( 9,982) $ 1,905,459	2020
		$ 674,957 49,640 - ( 51,084 ) 673,513 314,062 283,837 493,441 197,293 ( 69 ) ( 10,270) $ 1,951,807

• (b) Eastern Home Shopping & Leisure Co., Ltd.

The following consolidated financial information of significant affiliates had been adjusted according to individually prepared IFRS financial statements of these affiliates:

these affiliates:
Current assets Non-current assets Liabilities Net assets Non-controlling interests, attributable to investee Net assets attributable to investee		December 31, 2021 $ 4,572,514 7,635,401 ( 9,944,589) $ 2,263,326 $ 314,919 $ 1,948,407		December 31, 2020
				$ 5,459,802 6,614,712 ( 9,882,194) $ 2,192,320 $ 293,369 $ 1,898,951

～ 45 ～

Operating revenue Net income Other comprehensive income ( Total comprehensive income Comprehensive income (loss) attributable to non controlling interests Comprehensive income (loss) attributable to non controlling investee Share of net assets attributable to the Group on January 1 Comprehensive income attributable to the Group Dividends received from associates ( Share of net assets attributable to the Group on December 31	For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
	2021 $ 27,200,172 $ 1,843,015 34,712) $ 1,808,303 $ 26,269 $ 1,782,034 $ 491,228 460,985 448,191) $ 504,022		2020 $ 23,709,345 $ 1,454,098 ( 46,847 ) $ 1,407,251 $ 5,356 $ 1,401,895 $ 394,067 362,648 ( 265,487 ) $ 491,228

• c. The Group’s financial information for investments accounted for using the equity method that are individually insignificant was as follows:

Attributable to the Group: Profit from continuing operations Other comprehensive loss Total comprehensive loss	For the Year Ended December 31	For the Year Ended December 31
		2020
	( (	$ 182 1,821) $ 1,639)

• d. The liquidation of the Group’ s affiliate EHK E&S Co., Ltd. was completed on June 18, 2020, and all remaining invested funds of $24,473 were recovered as of June 30, 2020, incurring an investment loss of $3,806. The investment loss of this disposal includes the amount previously recognized in other comprehensive income that may be reclassified to profit or loss.

• e. The Group recognized impairment losses of $5,933 related to individually insignificant associates on December 31, 2020.

• f. Please refer to Note 38 for the details of the investments accounted for using equity method pledged as collateral.

14. Acquire a subsidiary

• a. On January 2, 2020, the Company’s Board of Directors resolved to invest $100,000 in Eastern Asset, with a 100% shareholding, which was registered on February 24, 2020. It participated in the cash capital increase on March 10 and June 23 of the same year. The former did not increase the capital in proportion to the shareholding ratio, with an

～ 46 ～

investment amount of $230,000, thereby reducing its shareholding to 55%. All registration procedures had been completed on April 6, 2020. The latter transaction increased its capital by $165,000, and all registration procedures had been completed on July 27, 2020.

• b. The consolidated subsidiary – ET New Media has decided to establish Dung sen min diau yun Co., Ltd. on June 10, 2019 after obtaining the approval from the board of directors. Dung sen min diau yun Co., Ltd. has completed the registration on September 24, 2020 with the capital of $1,000 which was 100% held by ET New Media.

• c. In order to enhance its market share and competitiveness in the pet industry, the consolidated subsidiary, ET Pet, resolved on November 4, 2021 to acquire the rest 20% interests in subsidiaries, Oscar, Pet Kingdom and Kaou Sin at the amount of $90,082, making ET Pet hold 100% interests of these three companies. As of the reporting date, the transactions mentioned above were completed and the investment was fully paid. The acquisition was as follow:

Subsidiary		December 3, 2021	December 3, 2021	January 3, 2022 Investment amount Shares/ Units Proportion of shareholding	January 3, 2022 Investment amount Shares/ Units Proportion of shareholding
		Investment amount	Shares/ Units Proportion of shareholding	Investment amount
Oscar Pet Kingdom Kaou Sin		$ 33,586 9,161 1,975 $ 44,722	518,300 8.51% 860,000 20% 20,000 20%	$ 45,360 - - $ 45,360	700,000 11.49% - - % - - %

There was no change of the shareholdings in the subsidiary in 2020. The influence on equity attributable to owners of parent was as follow:

Non-controlling interests carrying amount Investment amount Subtotal Less: Changes in non-controlling interests	For the Year Ended December 31, 2021
	$ 39,205 ( 44,722) ( 5,517) ( 913) ($ 4,604)

Please refer to Note 28 for the details.

• d. On November 4, 2021, the board of directors of the consolidated subsidiary, EHR, resolved a capital injection by cash with an investment amount of $200,000, and the reference date was on December 15, 2021. This capital injection was participated by the Company, EILF, TKLF and EIC in proportion to the shareholding ratio. The registration was completed on January 6, 2022.

15. Material non-controlling interests of subsidiaries

Non-controlling interests of subsidiaries material to the Group are as follows:

Subsidiary name Eastern Asset	Main operating location Taiwan	Percentage of non-controlling interests December 31, 2021 December 31, 2020	Percentage of non-controlling interests December 31, 2021 December 31, 2020
		December 31, 2021
		45.00%	45.00%

The following information of the aforementioned subsidiaries had been prepared in accordance with the Regulations Governing the Prepartion of Financial Reports by

～ 47 ～

Securities Issuers. Included in this information were the fair value adjustment and accounting policies adjustment made during the acquisition and relevant difference in accounting principles between the Group as at the acquisition date. Intragroup transactions were not eliminated in this information.

The financial information of Eastern Asset was as follows:

Current assets Non-current assets Current liabilities Non-current liabilities Net assets Operating revenue Net loss Other comprehensive loss Total comprehensive loss Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities Net (decrease) increase in cash and cash equivalents	December 31, 2021 December 31, 2020 $ 253,631 $ 316,719 1,542,669 1,493,971 ( 5,390 ) ( 9,195 ) ( 892,705) ( 901,924 ) $ 898,205 $ 899,571 For the Years Ended December 31 2021 2020 $ - $ - ( $ 1,366 ) ($ 429 ) - - ( $ 1,366 ) ($ 429 ) ( $ 7,477 ) ($ 10,387 ) ( 16,151 ) ( 349,560 ) ( 40,062 ) 670,137 ( $ 63,690 ) $ 310,190	December 31, 2020
	2021 $ - ( $ 1,366 ) - ( $ 1,366 ) ( $ 7,477 ) ( 16,151 ) ( 40,062 ) ( $ 63,690 )

16. Loss of control of subsidiaries

• a. The Group resolved in February 2019 to dispose of all shares in the subsidiaries, Eastern Biotechnology (Shanghai); the disposal has been completed on January 20, 2020. The Group lost control over Eastern Biotechnology (Shanghai) due to the disposal. The disposition price was $734 (CNY $200). The gains on disposal of the investment were amounted to $81.

• b. The Group had lost the control over its liquidated subsidiary, Eastern Enterprise Shanghai Logistics Ltd., on July 20, 2020, resulting in a loss on liquidation amounting to $1,084.

• c. The Group liquated its subsidiaries, Shanghai Rich on March 24, 2021, and lost control over Shanghai Rich due to the disposal.

• d. The Company resolved on May 6, 2021 to dispose of the entire equity in the subsidiary, MWT with the price $35,400. After deducting relevant fees $106, the net price was fully received on May 10, 2021. The share transfer registration procedures were finished on May 28, 2021, and lost control over MWT since then. The loss on disposal of the investment was amounted to $4,327. The unrealized losses on financial assets measured at fair value through other comprehensive income relating to MWT amounted to $55 were also reclassified to retained earnings. Please refer to Note 19 for the details of transfer of goodwill generated from MWT.

The carrying amount of assets and liabilities of MWT on May 28, 2021, was as follows:

～ 48 ～

Cash and cash equivalents		$	7,028
Inventories			22,733
Accounts receivable and other accounts receivable			12,783
Other current assets			20,962
Property, plant and equipment			1,082
Right-of-ues assets			1,893
Other non-current assets			3,459
Short term loans	(		20,000)
Accounts payable and other accounts payable	(		5,664)
Current lease liabilities	(		645)
Other current liabilities	(		27,145)
Non-current lease liabilities	(		1,235)
Guarantee deposits received	(		149)
Carrying amount of net assets	$		15,102

• e. The Group liquiated its subsidiary, Show off on July 9, 2021, and lost control over it due to the liquidation.

17. Property, plant and equipment

• a. The cost, depreciation, and impairment loss of the property, plant and equipment of the Group were as follows:

Land Cost or deemed cost: Balance on January 1, 2021 $ 596,742 Loss of control of the subsidiary - Additions - Transfers - Disposals - Balance on December 31, 2021 $ 596,742 Balance on January 1, 2020 $ 508,791 Additions 87,951 Transfers - Disposals - Balance on December 31, 2020 $ 596,742 Depreciation and impairment loss: Balance on January 1, 2021 $ 5,740 Loss of control of the subsidiary - Depreciation - Transfers - Disposals - Impairment (reversals) losses ( 5,740) Balance on December 31, 2021 $ - Balance on January 1, 2020 $ 5,740 Depreciation - Disposals - Balance on December 31, 2020 $ 5,740 Carrying amounts: December 31, 2021 $ 596,472 January 1, 2020 $ 503,051 December 31, 2020 $ 591,002	Land	Buildings	Machinery and equipment Transportation equipment	Leasehold improvements Construction in progress Other equipment	Leasehold improvements Construction in progress Other equipment	Leasehold improvements Construction in progress Other equipment	Total
		$1,024,477 - 678 - ( 896) ( $ 1,024,259 $1,015,005 9,472 - - $1,024,477 $ 654,298 - 56,981 - ( 896) ( 90,813 $ 801,196 $ 590,188 64,110 - $ 654,298 $ 223,063 $ 424,817 $ 370,179	$ 3,674 $ 41,326 - ( 450) - 1,277 - - 3,674) ( 17,184) ( $ - $ 24,969 $ 3,674 $ 34,957 - 7,345 - - ( - ( 976) ( $ 3,674 $ 41,326 $ 3,674 $ 27,380 - ( 450) - 4,872 - - 3,674)( 17,184) ( - ( -) $ - $ 14,618 $ 3,674 $ 23,928 - 4,211 - ( 759) $ 3,674 $ 27,380 $ - $ 10,351 $ - $ 11,029 $ - $ 13,946	$ 502,263 - 132,504 115,316 ( 25,480) $ 724,603 $ 425,579 88,656 1) ( 11,971) $ 502,263 $ 105,579 - 86,822 - 20,534) - $ 171,867 $ 52,811 61,167 ( 8,399) $ 105,579 $ 552,736 $ 372,768 $ 396,684	$ 163,714 - ( 73,593 2,064) - ( $235,243 $ 400 163,580 266) - ( $ 163,714 $ - - ( - - ( - ( - $ - $ - - - ( $ - $ 235,243 $ 400 $ 163,714	$ 347,381 5,084) ( 68,946 839 39,893) ( $ 372,189 $ 285,974 6,3675 267 2,535) $ 347,381 $ 213,222 4,002)( 54,948 13) ( 38,462)( -	$ 2,679,577 5,534) 276,998 114,091 87,127) $ 2,978,005 $ 2,274,380 420,679 - ( 15,482) $ 2,679,577 $ 1,009,893 4,452) 203,623 13) 80,750) 85,073 $ 1,213,374 $ 835,084 185,312 10,503) $1,009,893 $ 1,764,631
						$ 225,693 $ 158,743 55,824 1,345) ( $ 213,222 $ 146,496 $ 127,231 $ 134,159
							$ 1,439,296 $ 1,669,684

• b. For the year ended December 31, 2021, the decrease in the Group's property, plant and equipment due to the loss of control over the subsidiary was described in Note 16.

～ 49 ～

• c. In March 2020, the Group signed a land rights contract with the Economic Development Bureau of the New Taipei City Government and the North District Office of the State-Owned Property Department of the Ministry of Finance in the form of land lease rights; and it has completed the establishment of land rights as of April 13, 2020, It is expected to be used for the construction of Eastern Media Group headquarters, The cost invested in the planning and construction is recognized under property, plant and equipment. In addition, please refer to Note 18 for the details of the lease of land rights.

• d. The subsidiary-EHR resolved to reconstruct its real estate in the extraordinary general meeting in 2021 and appointed Formosa international hotels corporation to manage resorts in Yilan. EHR recognized impairement losses of $85,073 due to the reconstruction in 2021. Please refer to Note 32 for the details.

• e. The fair values of parts of the Group’s land, and buildings on December 31, 2021 and 2020 were measured by the third-level input value of the expert report of the real estate appraiser. The evaluation is based on a comprehensive consideration of the comparative method, the cost method and the land development analysis method.

• f. Please refer to Note 38 for the details of the property, plant and equipment pledged as collateral.

18. Right-of-use assets

• a. The cost, depreciation, and impairment loss of the land and equipment, buildings, media exhibition boards and transportation equipment of the Group were as follows:

Land and equipment Right of use asset costs: Balance on January 1, 2021 $ 5,233,445 Loss of control of the subsidiary - Additions - Write off - lease modification 3 Write off - lease ending - Balance on December 31, 2021 $ 5,233,448 Balance on January 1, 2020 $ 4,109,171 Additions 1,126,492 Write off - lease modification ( 2,218 ) Write off - lease ending - Balance on December 31, 2020 $ 5,233,445 Accumulated depreciation and impairment losses: Balance on January 1, 2021 $ 441,315 Loss of control of the subsidiary - Depreciation 227,377 Impairment loss - Write off - lease modification - Write off - lease ending - Balance on December 31, 2021 $ 668,692 Balance on January 1, 2020 $ 220,259 Depreciation 221,056 Impairment losses - Write off lease modification - Write off - lease ending - Balance on December 31, 2020 $ 441,315 Carrying amounts: December 31, 2021 $ 4,564,756 January 1, 2020 $ 3,888,912 December 31, 2020 $ 4,792,130	Buildings $ 1,085,759 ( 992) 225,127 ( 34,058 ) ( 31,382) $ 1,244,454 $ 882,233 260,787 ( 38,194 ) ( 19,067) $ 1,085,759 $ 297,986 ( 83 ) 206,041 - ( 9,898) ( 31,382) $ 462,664 $ 130,528 192,511 - ( 5,986 ) ( 19,067) $ 297,986 $ 781,790 $ 751,705 $ 787,773	Outdoor advertising boards $ 2,763,333 - 36,892 42 - $ 2,800,267 $ 2,453,661 309,877 ( 205 ) - $ 2,763,333 $ 1,136,693 - 699,768 10,595 - - $ 1,847,056 $ 332,115 654,175 150,403 - - $ 1,136,693 $ 953,211 $ 2,121,546 $ 1,626,640	Transportation equipment $ 4,732 ( 1,492) 2,392 - - $ 5,632 $ - 4,732 - - $ 4,732 $ 598 ( 508 ) 1,708 - - - $ 1,798 $ - 598 - - - $ 598 $ 3,834 $ - $ 4,134	Total
				$ 9,087,269 ( 2,484) 264,411 ( 34,013) ( 31,382) $ 9,283,801 $ 7,445,065 1,701,888 ( 40,617) ( 19,067) $ 9,087,269 $ 1,876,592 ( 591) 1,134,894 10,595 ( 9,898) ( 31,382) $ 2,980,210 $ 682,902 1,068,340 150,403 ( 5,986) ( 19,067) $ 1,876,592 $ 6,303,591 $ 6,762,163 $ 7,210,677

• b. In March 2020, Group subsidiary Eastern Asset cooperated with the Economic Development Bureau of the New Taipei City Government and the North District Office of the State-owned Property Administration on the “Linkou International Media Park

～ 50 ～

Investment Promotion Project” and signed a contract to establish land usage rights. The duration of the land usage rights is 50 years from the date of registration of the land usage, and the land usage was set up on April 13, 2020. During the duration of the contract, Eastern Asset shall pay rent to the North Branch of the State-owned Property Administration of the Ministry of Finance each year at a certain rate of the announced land price.

Eastern Asset also signed an investment contract with the Economic Development Bureau of New Taipei City Government in March 2020. The main contents of the contract are as follows:

• (a) Development and operation period: 50 years from the date of establishment and registration of land usage rights.

• (b) Development royalties: The total amount is $200,000 under the right-of-use assets account.

• (c) Operating royalties: Starting from the date of operation, the actual net operating income of each base for the year is multiplied by the percentage of operating royalties contained in the contract to the net operating income to calculate the actual operating royalties payable by each base.

• (d) Performance bond: The performance bond has been paid according to the contract amounting to $200,000 (under the guarantee deposits paid account).

• c. The land rights obtained by Eastern Asset are expected to be used to build the headquarters of the Eastern Media Group, and the depreciation expenses of the right-of-use assets and the interest expenses of lease liabilities during the planning and construction period will be capitalized. The interest rate was at 2.75%. Details are as follows:

llows:
Right-of-use assets depreciation expense Interest expense on lease liability		For the Years Ended December 31
		2021 $ 22,530 $ 24,009		2020
				$ 16,189 $ 17,650

The above accounts are listed under property, plant and equipment. Please refer to Note 17 for details.

• d. Impairment losses

The media segment was affected by the Covid-19 pandemic, which caused a decline in advertising business. The Group expects that the future cash inflow generated by outdoor advertising boards will decrease, causing its recoverable amount to be less than the book value of the right-of-use assets. Therefore, for the years ended December 31, 2021 and 2020, the impairment losses recognized were $10,595 and $150,403, respecively. The impairment loss has been included in the other gains and losses net of the consolidated comprehensive income statement; please refer to Note 32.

The recoverable amount of outdoor advertising boards is calculated based on the value in use, and the value in use in turn is calculated based on the pre-tax cash flow forecast of the financial forecast for the remaining lease period of the outdoor advertising boards. The discount rates used to estimate the value in use are 7.02% and 7.6482%, respectively. The discount rate is a pre-tax rate measured on the basis of the estimated industry weighted average cost of capital, and the risk premium is adjusted to reflect the increased risk of general investment in equity and the specific systemic risk of cash-generating units.

The cash flow estimation is based on the financial budget of the remaining lease period

～ 51 ～

of the outdoor advertising boards estimated by the management. The estimation of EBITDA during the financial budget period is based on past experience, actual operating results and future lease expiry dates. Considering the nature of the outdoor media business, the management believes that the aforementioned forecast period is reasonable. The relevant operating income is estimated based on past experience and actual operating conditions, taking into account the market environment and the growth of the industry market. It also estimates operating costs and expenses based on past experience and changes in various costs and expenses, and calculates the recoverable amount using the pre-tax discount rate. The values of these key assumptions represent the management's assessment of the future trend of the outdoor media space operation business, while taking external and internal information (historical information) into account.

19. Intangible assets

• a. The cost, depreciation, and impairment loss of the Intangible assets of the Group were as follows:

Cost: Balance on January 1, 2021 Additions Disposals Loss of control of the subsidiary ( Balance onDecember 31, 2021 Balance on January 1, 2020 Additions Acquisition through business combinations Transfers ( Balance onDecember 31, 2020 Amortization and impairment loss: Balance on January 1, 2021 Amortization Disposal Impairment loss Balance onDecember 31, 2021 Balance on January 1, 2020 Amortization Balance onDecember 31, 2020 Carrying amounts: December 3131, 2021 January 1, 2020 December 3131, 2020	Goodwill		Trademark $ 271,695 255 - - $ 271,950 $ 233,229 401 38,065 - $ 271,695 $ 16,518 15,177 - - $ 31,695 $ 2,085 14,433 $ 16,518 $ 240,255 $ 231,144 $ 255,177		Client rights	Computer software Other intangible assets Total $ 53,856 $ 19,290 $ 529,094 9,562 1,166 10,983 ( 809)( 867)( 1,676) - - ( 31,919) $ 62,609 $ 19,589 $ 506,482 $ 42,053 $ 13,008 $ 518,578 11,803 6,282 18,486 - - 8,265 - - ( 16,235) $ 53,856 $ 19,290 $ 529,094 $ 27,551 $ 8,545 $ 61,760 12,223 5,684 40,401 ( 809) ( 867) ( 1,676 ) 31 - 31 $ 38,996 $ 13,362 $ 100,516 $ 17,803 $ 3,602 $ 27,744 9,748 4,943 34,016 $ 27,551 $ 8,545 $ 61,760 $ 23,613 $ 6,227 $ 405,966 $ 24,250 $ 9,406 $ 490,834 $ 26,305 $ 10,745 $ 467,334	Computer software Other intangible assets Total $ 53,856 $ 19,290 $ 529,094 9,562 1,166 10,983 ( 809)( 867)( 1,676) - - ( 31,919) $ 62,609 $ 19,589 $ 506,482 $ 42,053 $ 13,008 $ 518,578 11,803 6,282 18,486 - - 8,265 - - ( 16,235) $ 53,856 $ 19,290 $ 529,094 $ 27,551 $ 8,545 $ 61,760 12,223 5,684 40,401 ( 809) ( 867) ( 1,676 ) 31 - 31 $ 38,996 $ 13,362 $ 100,516 $ 17,803 $ 3,602 $ 27,744 9,748 4,943 34,016 $ 27,551 $ 8,545 $ 61,760 $ 23,613 $ 6,227 $ 405,966 $ 24,250 $ 9,406 $ 490,834 $ 26,305 $ 10,745 $ 467,334	Computer software Other intangible assets Total $ 53,856 $ 19,290 $ 529,094 9,562 1,166 10,983 ( 809)( 867)( 1,676) - - ( 31,919) $ 62,609 $ 19,589 $ 506,482 $ 42,053 $ 13,008 $ 518,578 11,803 6,282 18,486 - - 8,265 - - ( 16,235) $ 53,856 $ 19,290 $ 529,094 $ 27,551 $ 8,545 $ 61,760 12,223 5,684 40,401 ( 809) ( 867) ( 1,676 ) 31 - 31 $ 38,996 $ 13,362 $ 100,516 $ 17,803 $ 3,602 $ 27,744 9,748 4,943 34,016 $ 27,551 $ 8,545 $ 61,760 $ 23,613 $ 6,227 $ 405,966 $ 24,250 $ 9,406 $ 490,834 $ 26,305 $ 10,745 $ 467,334	Computer software Other intangible assets Total $ 53,856 $ 19,290 $ 529,094 9,562 1,166 10,983 ( 809)( 867)( 1,676) - - ( 31,919) $ 62,609 $ 19,589 $ 506,482 $ 42,053 $ 13,008 $ 518,578 11,803 6,282 18,486 - - 8,265 - - ( 16,235) $ 53,856 $ 19,290 $ 529,094 $ 27,551 $ 8,545 $ 61,760 12,223 5,684 40,401 ( 809) ( 867) ( 1,676 ) 31 - 31 $ 38,996 $ 13,362 $ 100,516 $ 17,803 $ 3,602 $ 27,744 9,748 4,943 34,016 $ 27,551 $ 8,545 $ 61,760 $ 23,613 $ 6,227 $ 405,966 $ 24,250 $ 9,406 $ 490,834 $ 26,305 $ 10,745 $ 467,334
	$ 111,084 - - 31,919)				$ 73,169 - - -
	$ 79,165 $ 160,379 - ( 33,060) 16,235) $ 111,084 $ - - - - $ - $ - - $ - $ 79,165 $ 160,379 $ 111,084				$ 73,169
					$ 69,909 - 3,260 -
					$ 73,169
					$ 9,146 7,317 - - $ 16,463 $ 4,254 4,892 $ 9,146 $ 56,706 $ 65,655 $ 64,023
							$ 27,551		$ 8,545 $ 6,227 $ 9,406 $ 10,745
							$ 23,613
							$ 24,250
							$ 26,305

• b. For the year ended December 31, 2021, due to the loss of control of the subsidiary, the goodwill decreased of $31,919. Please refer to Note 16 for the details.

• c. The allocation of goodwill was as follows:

Retail business E ticket business Total		December 31, 2021 $ 79,165 - $ 79,165		December 31, 2020
				$ 79,165 31,919 $ 111,084

• d. Tradermark, Client rights, brand values and Supplier contracts

The Group measured the fair value of the net assets at acquisition date and evalued the fair value and durability of intangible assets which were met the standard and

～ 52 ～

significant.

The identifiable intangible assets with determined durability would amortize since the acquisition year.

• e. The impairment evaluation of goodwill

• Goodwill had been allocated to the acquirer’s identifiable cash generating units. The recoverable amount was based on its value in use, determined by pre tax cash flow forecasts of five-year financial budgets approved by the management. The recoverable amount measured by gross profit ratio, growth rate and discount rate exceeded the carrying amount, thus, impairment loss did not occur.

• The discount rate the management adopted was a pre tax measure reflecting specific risks of the relative operating divisions.

• The management believed that any reasonable changes to key assumptions used for determining recoverable amount of each cash generating unit would not cause its carrying amount greater than the recoverable amount. The recoverable amount determined under aforesaid the key assumptions comparing with the carrying amount of the assets used for operation and the goodwill on the valuation date, ended up with no impairment loss should be recognized for the years ended December 31, 2021 and 2020, respectively.

20. Short-term loans

Details of short-term loans of the Group were as follows:

Unsecured bank loans Secured bank loans Total Unused credit lines	December 31, 2021 $ 49,500 43,945 $ 93,445 $ 1,666,607	December 31, 2020
		$ 12,295 50,000 $ 62,295 $ 1,005,800

• a. For the year ended December 31, 2021, the reduction of short-term loans was due to the loss of control of the subsidiary. The information please refer to Note 16.

• b. Please refer to Note 38 for the details of the related assets pledged as collateral.

• c. Please refer to Note 22 for the details of the interest rates.

21. Short-term notes and bills

Details of short-term notes and bills of the Group were as follows:

No guarantees to pay commercial promissory notes Less: discount amount Carrying amount Unused credit lines	December 31, 2021 $ 80,000 (152) $ 79,848 $ 330,000	December 31, 2020
		$ - - $ - $ -

Please refer to Note 22 for the details of the interest rates.

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22. Notes payable

tes payable
Generated from operation Non-generated from operation Financing		December 31, 2021 $ 4,539 185,922 $ 190,461	December 31, 2020
			$ 29,877 64,727 $ 94,604

• a. Notes payable which were not generated from operation were 12 periods of repayment checks issued to the leasuring company. Since there were demands for short-term working capital of the Group, the Group signed loan contracts with leasuring companies. The loaning duration was lasting for one year.

• b. The interest rates in short-term loans, short-term notes and bills and notes payable are 2.00%~3.00% and 1.955%~3.04% on December 31, 2021 and 2020, respectively.

23. Long-term loans

Details, conditions, and terms of long-term loans of the Group were as follows:

Unsecured loans Secured bank loans Less: Current portion Fees Total Duration year Interest rates Unused credit lines	December 31, 2021 $ 99,948 1,148,385 ( 910,549 ) ( 6,659) $ 331,125 111~118 1.80%~3.94% $ 4,453,609	December 31, 2020
		$ 136,500 679,800 ( 174,525 ) ( 3,789) $ 637,986 110~112 2.01%~3.05% $ 371,500

Please refer to Note 38 for the details of the related assets pledged as collateral.

24. Long term notes and accounts payable

ng term notes and accounts payable
Generated from operation Less: Current portion		December 31, 2021 $ 192,081 156,238) $ 35,843		December 31, 2020
	(		(	$ 176,890 116,004) $ 60,886

Long term notes payable were 18 and 24 periods of repayment checks. Since there were demands for working capital of the Group, the Group signed installment purchase contracts.

25. Lease liabilities

Book value of the Group’s lease liabilities were as follows:

Current Non-current	December 31, 2021 $ 1,066,678 $ 5,320,955	December 31, 2020
		$ 1,174,478 $ 6,167,307

For the maturity analysis, please refer to Note 33.

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Lease amounts recognized as profit or loss were as follows:

Interests on lease liabilities $ Variable lease payments not included in the measurement of lease liabilities $ Expenses relating to short-term leases $ Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets $ Covid-19 related rent concessions recognized as other income ($ Lease amounts recognized in the Statements of Total cash outflow for leases				For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
				2021 2020 178,621 $ 214,902 31,681 $ 29,996 295,301 $ 80,264 1,347 $ 1,814 248,391) ($ 174,520) Cash Flows were as follows: For the Years Ended December 31 2021 2020 $ 1,450,653 $ 1,306,050		2020
		$
		$
		$
		$
		($
				2021 $ 1,450,653

• a. For the nine months ended September 30, 2021, the reduction of lease liabilities was due to the loss of control of the subsidiary. The information please refer to Note 16.

• b. For the years ended December 31, 2021 and 2020, newly added lease liabilities amounted to $264,411 and $1,701,888, respectively, and the interest rates were 2.75%~3%. Lease period ending dates extend from February 2022 to April 2070. However, for the years ended December 31, 2021 and 2020, the group negotiated modifications to its contracts in consideration of its operating conditions, thereby reducing lease liabilities by $24,589 and $35,363 respectively. The information on modifications of the Group’ s lease contracts, please refer to Note 18 and 32.

• c. Leases of land and equipment, and buildings

As of December 31, 2021, the Group leased land and buildings for its warehousing operations, office space and retail stores, and the land rights of the group headquarters. The leases of office space typically run for a period of 20 years, retail stores for 3 to 10 years, and land usage rights for 50 years. Some leases included an option to renew the lease for an additional period of the same duration after the end of the contract term.

Some leases of office buildings contained extension options exercisable by the Group up to one year before the end of the non-cancellable contract period. These leases are negotiated and monitored by local management, and accordingly, contain a wide range of different terms and conditions. The extension options held are exercisable only by the Group and not by the lessors. In which lease is not reasonably certain to use an optional extended lease term, payments associated with the optional period are not included within lease liabilities.

d. Other leases

The Group leases outdoor advertising boards and transportation equipment with lease terms of three to five years. In some cases, the Group has options to extend lease terms at the end of the contract term.

The Group also leases IT equipment and machinery with contract terms of one to three years. These leases are short-term or leases of low value items. The Group has elected not to recognize right of use assets and lease liabilities for these leases.

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26. Employee benefits

a. Defined benefit plans

The Group determined the movement in the present value of the defined benefit obligations and fair value of plan assets as follows:

obligations and fair value of plan assets	as follows:
Present value of defined benefit obligations Fair value of plan asset ( Net defined benefit liabilities	December 31, 2021 $ 143,259 122,283) $ 20,976	December 31, 2020
		$ 148,076 ( 122,359) $ 25,717

• (a) Composition of plan assets

The Group allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

The Group’s Bank of Taiwan labor pension reserve account balance amounted to $122,283 as of December 31, 2021. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

(b) Movements in present value of the defined benefit obligations

The movement in present value of the defined benefit obligations for the years ended December 31, 2021 and 2020 were as follows:

Defined benefit obligations at January 1 Current service cost and interest Remeasurements of the net defined benefit liability (asset): －Actuarial (losses) gains due to experience adjustments Benefits paid by the plan Defined benefit obligations at December 31		For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
		2021 $ 148,076 1,903 1,324 ( 8,044) $ 143,259		2020
				$ 147,710 2,412 2,986 ( 5,032) $ 148,076

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(c) Movements of defined benefit plan assets

The movements in the present value of the defined benefit plan assets for the years ended December 31, 2021 and 2020 were as follows:

Fair value of plan assets at January 1 Interest revenue Remeasurements of the net defined liability (asset): －Return on plan assets (excluding interest for the period) Contributions made from employer Benefits paid by the plan Fair value of plan assets at December 31		For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
		2021 $ 122,359 232 1,979 5,757 ( 8,044) $ 122,283		2020
				$ 116,161 720 3,983 6,527 ( 5,032) $ 122,359

(d) Expenses recognized in profit and loss

The expenses recognized in profit or loss for the years ended December 31, 2021 and 2020 were as follows:

Service cost of the period Net interest on net defined benefit liability Curtailment or settlement losses Operating cost General and administrative expense		For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
		2021 $ 1,617 286 ( 232) $ 1,671 $ 1,011 660 $ 1,671		2020
				$ 1,522 890 ( 720) $ 1,692 $ 1,086 606 $ 1,692

(e) Actuarial valuations

The principal actuarial assumptions at the reporting date were as follows:

Discount rate Future salary increase	December 31, 2021 0.61%~0.64% 0.50%~1.00%	December 31, 2020
		0.19%～0.36% 0.50%

The expected allocation payment to be made by the Group to the defined benefit plans for the one-year period after the reporting date is $2,935.

～ The weighted-average lifetime of the defined benefits plans is 6 13 years.

(f) Sensitivity analysis

When calculating the present value of the defined benefit obligations, the Group uses judgments and estimations to determine the actuarial assumptions, including employee turnover rates and future salary changes, as of the financial statement date. Any changes in the actuarial assumptions may significantly impact the amount of the defined benefit obligations.

～ 57 ～

As of December 31, 2021 and 2020, the changes in the principal actuarial assumptions will impact on the present value of defined benefit obligation as follows:

December 31, 2021 Discount of 0.50% Future salary change of 0.50% December 31, 2020 Discount of 0.50% Future salary change of 0.50%	Impact onpresent value of defined benefit obligations	Impact onpresent value of defined benefit obligations
	Increase ($ 1,813) 7,142 ($ 1,881) 4,748	Decrease
		7,206 ( 1,773) 4,812 ( 1,520)

The sensitivity analysis assumed all other variables remain constant during the measurement. This may not be representative of the actual change in defined benefit obligation as some of the variable may be correlated in the actual situation. The model used in the sensitivity analysis is the same as the defined benefit obligation liability.

The analysis is performed on the same basis for prior year.

• b. Defined contribution plans

The Group contributed 6% of the employees’ monthly wages to the Labor Pension personal accounts at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. The Group contributed a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

For the years ended December 31, 2021 and 2020, the Group contributed $55,116 and $51,494, respectively, under the pension plan to the Bureau of Labor Insurance.

27. Income taxes

a. The components of income tax for the years ended December 31, 2021 and 2020 were as follows:

follows:
Current income tax expense Current period Undistributed earnings additional tax Adjustment for prior periods Deferred tax expense Origination and reversal of temporary differences Income tax benefit	For the Years Ended December 31
	2021 ( $ 1,660 ) - ( 5,166 ) ($ 6,826) ( 32,312) ($ 39,138 )		2020
		$ ( ( (	15,537 5 337 $ 15,879) 199,266 ) $ 183,387 )

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The reconciliation of income tax and profit before tax was as follows:

For the Years Ended December 31 2021 2020 Profit before tax $ 710,152 $ 309,719 Income tax on pre tax financial income calculated at the domestic rates applicable to profits in the country concerned 142,030 61,944 Differences of income tax rate in foreign countries 11,621 400 Investment gain or loss from domestic investment accounted for using equity method 93,529 69,955 Other adjustments in accordance with tax laws ( 292,004 ) ( 232,056 ) Prior years’ adjustment ( 5,166 ) 337 Undistributed earnings additional tax - 5 Income basic tax - 3,400 Deferred income taxes 10,852 ( 87,372 ) Total ($ 39,138 ) ($ 183,387 ) b. Deferred tax assets and liabilities (a) Unrecognized deferred tax assets Deferred tax assets have not been recognized in respect of the following items: December 31, 2021 December 31, 2020 Tax effect of deductible temporary differences $ 3,570 $ 4,716 The carryforward of unused tax losses 1,292,410 1,663,653 Investment tax credits - 1,331 $ 1,295,980 $ 1,669,700		For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
				2020
				$ 309,719 61,944 400 69,955 ( 232,056 ) 337 5 3,400 ( 87,372 ) ($ 183,387 ) following items: December 31, 2020
				$ 4,716 1,663,653 1,331 $ 1,669,700

The R.O.C. Income Tax Act allows net losses, as assessed by the tax authorities, to offset taxable income over a period of ten years for local tax reporting purposes. Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Group can utilize the benefits therefrom.

As of December 31, 2021, the information of the Group’s unutilized business unused tax losses for which no deferred tax assets were recognized are as follows:

Year of Occurrence 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021	Remaining Creditable Amount $ 1,554,318 1,158,292 1,091,940 841,860 273,378 233,461 271,495 369,556 427,135 240,616 $ 6,462,051	Year of Expiration
		2022 2023 2024 2025 2026 2027 2028 2029 2030 2031

～ 59 ～

(b) Recognized deferred tax assets and liabilities

Changes in the amount of deferred tax assets and liabilities for the years ended December 31, 2021 and 2020, were as follows:

Deferred Tax Assets: Balance, January 1 Loss control of its subsidiary Recognized in profit or loss Balance, December 31 Deferred Tax Liabilities: Balance, January 1 Recognized in profit or loss Balance, December 31	For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
	2021 $ 414,169 ( 505) 32,789 $ 446,453 $ 48 477 $ 525		2020
			$ 214,855 - 199,314 $ 414,169 $ - 48 $ 48

For the years ended December 31, 2021 and 2020, previously unrecognized tax losses of $31,795 and $199,920 were recognized as deferred tax assets, as management determined that it was probable that there would be sufficient taxable gains in the future.

• c. The Company’s tax returns for the years through 2019 were examined and approved by the tax authority.

28. Capital and other equity

• a. Ordinary shares

As of December 31, 2021 and 2020, the total value of nominal ordinary shares amounted to $15,000,000 with a par value of $10 (dollars) per share. The total number of shares was 528,950 and 556,790 thousand shares, respectively.

For increasing the return on equity, on March 23, 2022 and March 25, 2021, a resolution was passed in the Boardmeeting for the capital reduction with $1(NT$) and $0.5(NT$) per share, amounting to $528,950 and $278,395, cancelling 52,895 and 27,840 ordinary thousand shares, and would be passed in the shareholders’ meeting on June 13, 2022 and July 7, 2021, respectively. The capital reduction was approved by the Taiwan Stock Exchange on July 23, 2021.The Company’ s board of directs approved the reference date for capital reduction would be on July 28, 2021. The registration procedures were finished on August 6, 2021.

• b. Capital surplus

The balances of capital surplus as of December 31, 2021 and 2020, were as follows:

Changes in equity of associates and subsidiaries accounted for using equity method Difference between consideration and carrying-amount of subsidiaries acquired or disposed Changes in equity of subsidiaries	December 31, 2021 $ 639 15,604 - $ 16,243	December 31, 2020
		$ 639 15,604 4,526 $ 20,769

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital

～ 60 ～

surplus in excess of par value should not exceed 10% of the total common stock outstanding.

• c. Retained earnings

• (a) Legal reserve

When a company incurs no loss, it may, pursuant to a resolution by a shareholders’ meeting, distribute its legal reserve by issuing new shares or by distributing cash, and only the portion of legal reserve which exceeds 25% of capital may be distributed.

• (b) Special reserve

By choosing to apply exemptions granted under IFRS 1 First time Adoption of International Financial Reporting Standards during the Company’s first-time adoption of the International Financial Reporting Standards (IFRSs) endorsed by the Financial Supervisory Commission, unrealized revaluation gains recognized under shareholders’ equity and cumulative translation adjustments (gains) shall be reclassified as investment property at the adoption date. In accordance with Ruling No. 1010012865 issued by the Financial Supervisory Commission on April 6 2012, an increase in retained earnings due to the first-time adoption of IFRSs shall be reclassified as a special earnings reserve during earnings distribution, and when the relevant asset is used, disposed of, or reclassified, this special earnings reserve shall be reversed as distributable earnings proportionately.

A portion of current period earnings and undistributed prior period earnings shall be reclassified as a special earnings reserve during earnings distribution. The amount to be reclassified should be equal to the difference between the total net current period reduction of special earnings reserve resulting from the first-time adoption of IFRSs and the carrying amount of other shareholders’ equity as stated above. Similarly, a portion of undistributed prior period earnings shall be reclassified as a special earnings reserve (which does not qualify for earnings distribution) to account for cumulative changes in other shareholders’ equity pertaining to prior periods due to the first-time adoption of IFRSs. Amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions. (c) Earnings distribution

The Company held a shareholder’s meeting on June 29, 2020 to pass a resolution to amend the Company’s Articles of Incorporation to state that if profit distribution is to be paid in cash, it may be approved by the Board of Directors and reported to the Shareholders in its meeting.

The dividend policy of the Company takes into consideration the expenditures for its business expansion, investment, and improvement of its financial structure. Dividend distributions should not be less than 15% of distributable earnings. The Company distributes dividends of at least 10% of the aggregated dividends, if the distributions include cash dividends. The policy requires that all after-tax earnings shall first offset any deficit, and 10% of the balance shall be set aside as legal reserve. The appropriation for legal reserve is discontinued when the balance of the legal reserve equals the amount of issued share capital. Aside from the aforesaid legal reserve, the Company may, under its articles of incorporation or as required by the government, appropriate a special reserve. If there is still surplus, and the undistributed surplus at the beginning of the same period (including adjustment of the amount of undistributed surplus), its distribution shall be the approved by the board of directors.

The appropriations of 2020 earnings concerning cash dividends have been approved by the Company’s board of directors on March 25, 2021. The rest appropriations of 2020 earnings and 2019 earnings would be resolved by the shareholder’s meeting on

～ 61 ～

July 7, 2021 and June 29, 2020, respectively. The appropriations were as follows:

Amount	Amount	Amount			Dividend per share (NT$)	Dividend per share (NT$)	Dividend per share (NT$)	Dividend per share (NT$)
2020			2019		2020		2019
Legal reserve $ 54,042		$	37,423		$ -	$		-
Special reserve 68,155			44,579		-			-
Cash dividends 445,432			556,790		0.8			1.0
On March 23, 2022, the Company’s		Board of Directors resolved to appropriate the
2021 earnings, as follows:
					Earnings	Dividend per
					distributions		share
Legal reserve				$	74,607			-
Special reserve					50,654			-
Cash dividends					528,950			1.0
The earnings for 2021 is to be presented for approval in the Company’s Board									of
Shareholders to be held on June 13, 2022 (expected). For further information, please
refer to the Market Observation Post System.
(d) In 2020, as disposing financial	assets at fair value through other comprehensive
income, the gain on disposal amounted to $19,492, were transferred							from other
equity to retained earnings.
(e) As the Group disposed its subsidiary—MWT on May 28, 2021, the unrealized losses
on financial assets measured at	fair value through other comprehensive							income
relating to MWT amounted to $55 were			also reclassified to retained earnings.
(f) In 2021, the Group acquired shares		from non-controlling interests, leading						changes
in shareholdings at the amount of $4,604. This transtracion reduced capital								surplus,
difference between consideration and			carrying-amount of subsidiaries acquired						or
disposed from $4,526 to nil, and retained earning of $78. Please refer						to Note 14 for
the details.
d. Other equity (net of tax)
					Unrealized gains
					(losses) from
			Foreign		financial assets
			currency		measured at fair
		translation			value through
	differences for				other
			foreign		comprehensive
		operations			income		Total
Balance on January 1, 2021	($		292,290)		($ 3,666)	($		295,956)
Exchange differences on foreign
operation	(		4,268)		-	(		4,268)
Change in other comprehensive
income (loss) of associates
accounted for using equity method	(		46,352)		15	(		46,337)
Unrealized losses from financial
assets measured at fair value
through other comprehensive
income			-		7				7
Loss of control of the subsidiary			-		( 55)	(			55)
Balance on December 31, 2021	($		342,910)		($ 3,699)	($		346,609)

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					Unrealized gains	Unrealized gains	Unrealized gains	Unrealized gains
					(losses) from
		Foreign			financial assets
		currency			measured at		fair
		translation			value through
		differences for				other
		foreign			comprehensive
		operations			income					Total
	Balance on January 1, 2020	($	224,130)		($	3,671)			($		227,801)
	Exchange differences on foreign
	operation		680				-				680
	Change in other comprehensive
	income (loss) of associates
	accounted for using equity method	(	68,840)				6		(		68,834)
	Unrealized losses from financial
	assets measured at fair value
	through other comprehensive
	income		-			19,491					19,491
	Disposal of investments in equity
	instruments designated at fair value
	through other comprehensive
	income		-		(	19,492)			(		19,492)
	Balance on December 31, 2020	($	292,290)		($	3,666)			($	295,956)
29.	Earnings per share
	The basic earnings per share and diluted earnings		per shares were			calculated			as follows:
			For theyear Ended December							31
			2021					2020
	Basic earnings per share
	Profit attributable to ordinary shareholders		$	745,493		$			520,859
	The weighted average number of ordinary shares
	outstanding (thousand shares)			544,815					556,790
	Earnings per share (NT$)		$		1.37	$				0.94
	Diluted earnings per share
	Profit attributable to ordinary shareholders		$	745,493		$			520,859
	The weighted average number of ordinary shares
	outstanding (thousand shares)			544,815					556,790
	Effect of dilutive potential ordinary shares:
	Employee stock bonus				925					843
	Profit attributable to ordinary shareholders of the
	Company (Weighted average number of
	ordinary shares(diluted) at 31 December)			545,740					557,633
	Earnings per share (NT$)		$		1.37	$				0.93

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30. Revenue from contracts with customers

a. Details of revenue

For the year ended December 31, 2021 Warehousing Trading Media Others Total Main services: Sales revenue $ - $1,910,361 $ 24,526 $ 18,162 $ 1,953,049 Media revenue - - 1,866,720 - 1,866,720 Loading and storage revenue 1,369,908 - - - 1,369,908 Others revenue - 189,525 106,855 25,862 322,242 $1,369,908 $ 2,099,886 $1,998,101 $ 44,024 $ 5,511,919 For the year ended December 31, 2020 Warehousing Trading Media Others Total Main services: Sales revenue $ - $1,654,518 $ 26,282 $ 72,776 $ 1,753,576 Media revenue - - 1,352,291 - 1,352,291 Loading and storage revenue 1,338,004 - - - 1,338,004 Others revenue - 185,209 56,246 42,688 284,143 $1,338,004 $1,839,727 $1,434,819 $ 115,464 $ 4,728,014 b. Contract balances December 31, 2021 December 31, 2020 January 1, 2020 Notes receivable $ 5,785 $ 4,406 $ 4,264 Installment notes receivable 131,397 121,735 62,065 Accounts receivable 497,999 395,034 380,995 Less:Allowance for doubtful accounts ( 52,019) ( 39,803) ( 29,563) Unrealized interest revenue ( 11,051) ( 7,856) ( 2,254) Total $ 572,111 $ 473,516 $ 415,507 Contract liability-advertising services $ 26,134 $ 32,912 $ 16,729 Contract liability-others 6,104 4,527 8,184 Total $ 32,238 $ 37,439 $ 24,913		For the year ended December 31, 2021	For the year ended December 31, 2021
		Warehousing Trading Media Others $ - $1,910,361 $ 24,526 $ 18,162 - - 1,866,720 - 1,369,908 - - - - 189,525 106,855 25,862 $1,369,908 $ 2,099,886 $1,998,101 $ 44,024 For the year ended December 31, 2020		Total
				$ 1,953,049 1,866,720 1,369,908 322,242 $ 5,511,919
				Total
			$ 4,264 62,065 380,995 ( 29,563) ( 2,254) $ 415,507 $ 16,729 8,184 $ 24,913

(a) Please refer to Note 9 for the details of accounts receivable and its impairment.

(b) The major change in the balance of contract assets and contract liabilities is the difference between the time frame in the performance obligation to be satisfied and the payment to be received. There were no significant changes.

31. Remuneration of employees

If the Company makes a profit during the year (referring to profit before tax minus the profit before the distribution of employee compensation), then after deducting any accumulated loss, 3.5% of the balance shall be allocated as employee compensation and the amount allocated shall be used as the current year's expense. Employees’ remuneration is based on stocks or cash, subject to a special resolution of the board of directors and reporting to the regular shareholders meeting.

The company's employee compensation for the years ended December 31, 2021 and 2020 are respectively $25,402 and $11,637. The estimated amounts mentioned above are calculated based on the net profit before tax, excluding the remuneration to employees,

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multiplied by the percentage of remuneration to employees. These remunerations were expensed under operating costs or expenses during those periods. The differences between the actual distributed amounts, as determined by the board of directors, and those recognized in the financial statements, if any, shall be accounted for as changes in accounting estimates and recognized in profit or loss in the following year. The numbers of shares to be distributed were calculated based on the closing price of the Company’s ordinary shares, one day before the date of the meeting of Board of Directors.

For the years ended December 31, 2020 and 2019, the Company estimated its employee remuneration amounting to $11,637 and $7,025, respectively. The amounts of employees’ and directors’ remuneration, as stated in the consolidated financial statements, were identical to the actual distributions amounts for the years 2020 and 2019. For further information, please refer to the Market Observation Post System.

32. Non-operating income and expenses

a. Interest income

The details of interest income of the Group were as follows:

For the Years Ended December 31 2021 2020 Interest income from bank deposits $ 5,474 $ 14,643 Interest income from financial assets measured at amortized cost 183 276 Other interest income 25 34 $ 5,682 $ 14,953 ther income he details of other revenue of the Group were as follows: For the Years Ended December 31 2021 2020 Dividend income $ 28,408 $ 4,765 Rental income 32,922 27,855 Liquidated damages 6,762 - Other income (note) 278,390 191,732 $ 346,482 $ 224,352		For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
				2020
		2021 $ 28,408 32,922 6,762 278,390 $ 346,482		2020
				$ 4,765 27,855 - 191,732 $ 224,352

b. Other income

The details of other revenue of the Group were as follows:

Note: Other income includes rent reductions of the Group due to the Covid-19 pandemic. For the years ended December 31, 2021 and 2020, the amount was $248,391 and $174,520, respectively. Please refer to Note 25 for details.

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c. Other gains and losses

The details of other gains and losses were as follows:

Loss on disposal of property, plant, and equipment Impairment loss on right of use assets Impairment loss on investments accounted for using equity method Loss on disposal of investments assets Net gains on evaluation of financial assets at fair value through profit or loss Foreign exchange gain (loss) Expected credit loss Impairment loss on property, plant, and equipment Impairment loss on intangible assets Lease modification benefits Other income (losses)		For the Years Ended December 31	For the Years Ended December 31
		2021 ($ 4,722) ( 10,595) - ( 4,327) 40,997 3,149 ( 328) ( 85,073) ( 31) 474 17,801 ($ 42,655)	2020
			($ 3,669) ( 150,403) ( 5,933) ( 4,809) 68,993 ( 2,621) - - - 732 54,249 ($ 43,461)
		(

d. Finance costs

The Group’s finance costs were as follows:

Interest expenses – lease liabilities Interest expenses – bank loans Finance expense		For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
		2021 $ 178,621 41,031 4,471 $ 224,123		2020
				$ 197,252 25,864 2,629 $ 225,745

33. Financial instruments

a. Credit risk

(a) Credit risk exposure

As of December 31, 2021 and 2020, the maxinum credit exposure for the Group originates from possible non-fulfillment of obligations by counterparties and from financial losses arising from financial guarantees provided by the Company, mainly from:

• ‧ The carrying amount of financial assets recognized in the consolidated balance sheet; and

• ‧ The amount of liabilities as a result from the Group providing financial guarantees to its customers was $1,674,569 and $1,120,682.

• (b) Concentration of credit risk

The Group caters to a large group of customers; therefore, there is no concentration of regional credit risk.

For credit risk exposure of notes and accounts receivable, please refer to Note 9.

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All of these financial assets are considered to have low risk, and thus, the impairment provision recognized during the period was limited to 12 months expected losses. Regarding how the financial instruments are considered to have low credit risk, please refer to Note 4g.

The loss allowance provision for the years ended December 31, 2021 and 2020 were determined as follows:

==> picture [421 x 476] intentionally omitted <==

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

For the Years Ended December 31
2021 2020
Other receivables
Balance on January 1 $ 1,697 $ 28,982
Amounts written off ( 208) ( 27,285)
Impairment losses recognized 328 -
Balance on December 31 $ 1,817 $ 1,697
b. Liquidity risk
The following are the contractual maturities of financial liabilities of the Group,
including estimated interest payments and excluding the impact of netting
agreements.
Carrying Contractual Within 1 More than
amount cash flows year 1-3 years 3-5 years 5 years
December 31, 2021
Non derivative
financial liabilities
Loans $ 1,335,119 $ 1,364,399 $ 1,025,959 $ 216,386 $ 96,151 $ 25,903
Short term notes
and bills
payable 79,848 80,000 80,000 - - -
Payables
(current and
non-current) 1,360,116 1,366,346 1,330,226 36,120 - -
Guarantee
deposits
received 4,317 4,317 - 4,317 - -
Lease liabilities
(current and
non-current) 6,387,633 8,183,871 1,239,320 1,298,719 780,626 4,865,206
$ 9,167,033 $ 10,998,933 $ 3,675,505 $ 1,555,542 $ 876,777 $ 4,891,109
December 31, 2020
Non-derivative
financial liabilities
Loans $ 874,806 $ 914,127 $ 257,570 $ 656,557 $ - $ -
Payables
(current and
non-current) 1,127,731 1,133,384 1,071,850 61,534 - -
Guarantee
deposits
received 4,756 4,756 - 4,756 - -
Lease liabilities
(current and
non-current) 7,341,785 9,310,283 1,374,452 1,999,507 805,839 5,130,485
$ 9,349,078 $11,362,550 $ 2,703,872 $ 2,722,354 $ 805,839 $ 5,130,485
----- End of picture text -----

b. Liquidity risk

The Group does not expect that the cash flows included in the maturity analysis could occur significantly earlier or in significantly different amounts.

• c. Exchange rate risk

• (a) Exposure to exchange rate risk

The Group’s financial assets and liabilities exposed to exchange rate risk were as follows:

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	Financial assets Moneytary items USD:TWD USD:HKD EUR:TWD CNY:HKD USD:CNY EUR:HKD Non-moneytary items USD:TWD HKD:TWD CNY:HKD HKD:USD Financial liabilities Moneytary items USD:TWD	December 31, 2021	December 31, 2020
		Foreign Currency Exchange Rate TWD	Foreign Currency Exchange Rate TWD
		$ 293 27.68 $ 8,105 5,419 7.799 149,998 234 31.32 7,333 4,107 1.224 17,843 42 6.372 1,187 117 8.825 3,674 72,523 27.68 2,007,438 15,832 3.549 56,187 1,787 1.224 7,765 557,569 0.128 1,981,425 $ 6,395 27.68 $ 177,015	$ 212 28.48 $ 6,050 5,538 7.754 157,706 2,885 35.02 101,025 4,005 1.192 17,487 42 6.507 1,196 117 9.534 4,098 69,737 28.48 1,986,095 16,795 3.673 61,686 1,953 1.192 8,551 553,362 0.129 2,028,468 $ 7,071 28.48 $ 201,392

(b) Sensitivity analysis

The Group’s exposure to exchange rate risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, other receivables, loans, accounts payable, and other payables that are denominated in foreign currency. If the TWD, when compared with each major foreign currency, had appreciated or depreciated 1% (with other factors remaining constant on the reporting date), net profit before tax would have respectively increased or decreased by $111 and $862 for the years ended December 31, 2021 and 2020, respectively. The analysis is performed on the same basis for both periods.

As the Group deals in diverse foreign currencies, gains or losses on foreign exchange are summarized as a single amount. For the the years ended December 31, 2021 and 2020, foreign currency exchange gains (losses) (including realized and unrealized) amounted $3,149 and ($2,621), respectively.

d. Interest rate analysis

The interest risk exposure of the Group’s financial assets and liabilities is described in the note on market risk management.

The following sensitivity analysis is based on the exposure to interest rate risk of the derivative and non-derivative financial instruments on the reporting date. For variable rate instruments, the sensitivity analysis assumes the variable rate liabilities on the reporting date have been outstanding for the whole year. The Group’s internal management reported the increases/decreases in interest rates, and changes in interest rates of one basis point are considered by management to be reasonably possible.

If the interest rate had increased or decreased by 1% and assuming all other variable factors remained constant, the Group’s net profit after tax would have respectively increased or decreased by $5,386 and $1,664 for the the years ended December 31, 2021 and 2020. This is mainly due to the Group’s variable rate deposit and borrowing.

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e. Other market price risk

Sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the profit and loss as illustrated below:

Price of securities at reporting date Increasing 3% Decreasing 3%	For the years ended December 31, 2021 Other comprehensive income after tax Net income $ 225 $ 28,843 ($ 225) ($ 28,843)	For the years ended December 31, 2020	For the years ended December 31, 2020
	Other comprehensive income after tax $ 225 ($ 225)	Other comprehensive income after tax $ 243 $ (243) (	Net income
			$ 11,448 $ 11,448)

• f. Fair value of financial instruments

• (a) Fair value hierarchy

The carrying amount and fair value of the Group’s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and for equity investments that has no quoted prices in the active markets and whose fair value cannot be reliably measured, disclosure of fair value information is not required:

and whose fair value cannot be reliably information is not required:	measured, disclosure of fair value
December 31, 2021 Book Value	Fairvalue
	Level 1 Level 2 Level 3 Total
Financial assets at fair value through profit or loss Non-derivative financial assets mandatorily measured at fair value through profit or loss $ 961,420 Financial assets at fair value through other comprehensive income 7,510 Financial assets measured at amortised cost Cash and cash equivalents 1,761,806 Notes and accounts receivable (including related parties) 572,111 Other receivables (including related parties) 94,744 Other current financial assets 52,440 Refundable deposits 582,267 Other non-current financial assets 25,272 Financial liabilities measured at amortised cost Short-term borrowings 93,445 Short term borrowings bills payable 79,848 Notes and accounts payable (including related parties) 473,840 Other payables (including related parties) 694,195 Long-term borrowings (including current portion of long-term borrowings) 1,241,674 Lease liabilities (current and non-current) 6,387,633 Long-term notes and accounts payable (including current portion of long-term notes and accounts payable) 192,081 Guarantee deposits received 4,317	$ 961,420 $ - $ - $ 961,420 - - 7,510 7,510

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	December 31, 2020 Book Value	Fair value
		Level 1 Level 2 Level 3 Total
	Financial assets at fair value through profit or loss Non-derivative financial assets mandatorily measured at fair value through profit or loss $ 381,611 Financial assets at fair value through other comprehensive income 8,104 Financial assets measured at amortised cost Cash and cash equivalents 1,855,653 Notes and accounts receivable (including related parties) 473,516 Other receivables (including related parties) 101,008 Other current financial assets 43,934 Refundable deposits 562,689 Other non-current financial assets 33,760 Financial liabilities measured at amortised cost Short-term borrowings 62,295 Notes and accounts payable (including related parties) 310,892 Other payables (including related parties) 639,949 Long-term borrowings (including current portion of long-term borrowings) 812,511 Lease liabilities (current and non-current) 7,341,785 Long-term notes and accounts payable (including current portion of long-term notes and accounts payable) 176,890 Guarantee deposits received 4,756	$ 381,611 $ - $ - $ 381,611 594 - 7,510 8,104

• (b) Valuation techniques for financial instruments not measured at fair value The Group’s valuation techniques and assumptions used for financial instruments not measured at fair value are as follows:

• (b-1) Financial assets measured at amortized cost and financial liabilities measured at amortized cost

If the quoted prices in active markets are available, the market price is established as the fair value. However, if quoted prices in active markets are not available, the estimated valuation or prices used by competitors are adopted. If there is quoted price generated by transactions, the recent transaction price and quoted price data is used as the basis for fair value measurement. However, if no quoted price are available, estimates shall be used. The estimates and assumptions used in the evaluation method shall be the discounted value of cash flows to estimate the fair value.

• (c) Valuation techniques for financial instruments measured at fair value

• (c-1) Non-derivative financial instruments

If there is a quoted market price in an active market for a financial instrument, the fair value is based on the quoted market price in an active market. The fair value of listed (over-the-counter) equity instruments and debt instruments with quoted prices in active markets are based on quoted market prices on major exchanges and over-the-counter (OTC) central

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government bond marketplaces, which are judged to be popular securities.

A financial instrument is publicly quoted in an active market if quoted prices are readily and consistently available from exchanges, brokers, underwriters, industry associations, pricing services authorities, or regulatory authorities, and if those prices represent prices that are representative of actual and regularly occurring fair market activity. If the above conditions are not met, the market is considered inactive. In general, large bid-ask spreads, significant increases in bid-ask spreads, or low trading volume are indicators of an inactive market.

The fair values of the Group’s financial assets and liabilities, such as shares, funds and bonds of listed companies, with standard terms and conditions and traded in active markets, are determined by reference to quoted market prices, respectively.

Except for the above-mentioned financial instruments for which there is an active market, the fair values of other financial instruments are based on valuation techniques or quoted prices with reference to counterparties.

• (c-2) Derivative financial instruments

  • Derivative financial instruments are valued based on widely accepted valuation models, such as discounted and option pricing models. Structured interest rate derivative financial instruments are valued using an appropriate option pricing model (e.g., Black-Scholes model) or other valuation techniques, such as Monte Carlo simulation.

• (d) Transfers between Level 1 and Level 2

• There was no transfer between Level 1 and Level 2 for the years ended December 31, 2021 and 2020.

• (e) Reconciliation of Level 3 fair values

December 31, 2021 and 2020. econciliation of Level 3 fair values
Opening balance, January 1 Total gains and losses recognized: In other comprehensive income Disposal Ending balance, December 31	Fair value through other comprehensive income
	Equity investment without an active market
		For the years ended December 31
		2021 $ 7,510 - - $ 7,510		2020
			(	$ 12,525 19,910 24,925) $ 7,510

• (f) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

The Group’s financial instruments that use Level 3 inputs to measure fair value are “Financial assets at fair value through other comprehensive income.”

Quantified information of significant unobservable inputs was as follows:

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Item Financial assets at fair value through other comprehensive income equity investments without an active market Financial assets at fair value through other comprehensive income equity investments without an active market	Valuation technique Market comparable companies Net Asset Value Method	Significant unobservable inputs •Price to book ratio multiple (1.97 and 1.58 as of December 31, 2021 and 2020, respectively) •Discount for lack of marketability (20%) •Net Asset Value	Interrelationship between significant unobservable inputs and fair value measurement
			•The higher the multiple, the higher the fair value •The higher the discount, the lower the fair value •Not applicable

• (g) Fair value measurements in Level 3 – sensitivity analysis of reasonably possible alternative assumptions

The Group’s fair value measurement of financial instruments is reasonable, but using different evaluation models or evaluation parameters may result in different evaluation results. For fair value measurements in Level 3, changing one or more of the assumptions to reflect reasonably possible alternative assumptions would have the following effects:

December 31, 2021	Inputs	Rate increasing or decreasing	Other comprehensive income	Other comprehensive income
			Favourable	Unfavourable
	Price to book ratio multiple Discount for lack of marketability Price to book ratio multiple Discount for lack of marketability	1% 1% 1% 1%	$ 191 191 $ 133 133	($ 191) ( 191) ($ 133) ( 133)
Financial assets at fair value through other comprehensive income Equity investments without an active market Equity investments without an active market December 31, 2020
Financial assets at fair value through other comprehensive income Equity investments without an active market Equity investments without an active market

The favorable and unfavorable effects represent the changes in fair value, and fair value is based on a variety of unobservable inputs calculated using a valuation technique. The analysis above only reflects the effects of changes in a single input, and it does not include the interrelationships with another input.

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34. Financial risk management

• a. Overview

The Group is exposed to the following risks due to usage of financial instruments:

• (a) Credit risk

• (b) Liquidity risk

• (c) Market risk

This note describes the Group’s information concerning risk exposure and the Group’s targets, policies and procedures to measure and manage the risks. For more quantitative information about the financial instruments, please refer to related notes to the financial statements.

• b. Risk management framework

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Board has deputized the management of core business departments to develop and monitor the Group’s risk management policies. Management reports regularly to the Board of Directors on its activities.

The Group’s risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

• c. Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty of a financial instrument fails to meet its contractual obligations, which arises principally from the Group’s receivables from customers and financial instruments.

• (a) Accounts receivable and other receivables

The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the demographics of the Group’s customer base, including the default risk of the industry and country in which customers operate, as these factors may have an influence on credit risk. For the year ended December 31, 2021, 10% of the Group’s revenue was not concentrated with a single customer; therefore, there was no significant concentration of credit risk.

The Risk Management Committee has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Group’s standard payment and delivery terms and conditions are offered. The Group’s review includes external ratings, when available, and in some cases, bank references. Purchase limits are established for each customer and represent the maximum open amount without requiring approval from the Risk Management Committee; these limits are reviewed periodically. The Group would not trade with clients who cannot meet the basic credit rating requirement through regular review.

The Group monitored customer credit risk, customers are grouped according to their credit characteristics. Trade and other receivables relate mainly to the Group’s wholesale customers. Customers that are graded as “high risk” are placed on a restricted customer list and monitored by the Risk Management Committee, and future sales are made on a prepayment basis.

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The Group established a credit policy to obtain the necessary collateral to mitigate risks arising from financial loss due to default risk.

The Group has set up an allowance for impairment to reflect the estimate of incurred losses with respect to trade receivables. The collectible status of the allowance for doubtful accounts is divided into five stages: normal, noticeable, recoverable, recoverable with difficulty, and uncollectible. The Group recognizes the balance of the accounts receivable as impairment loss.

• (b) Investment

The credit risk exposure of the bank deposits, fixed income investments, and other financial instruments is measured and monitored by the General Manager’s office. The Group only deals with financial institutions, corporations and organizations with a credit rating of investment grade or higher; therefore, there are no significant doubts regarding default on the above financial instruments, and as a result, there is no significant credit risk.

• (c) Guarantee

The Group’s policy is to provide financial guarantees only to subsidiaries. As of December 31, 2021, and 2020, no other guarantees were outstanding.

• d. Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to ensure, as far as possible, that it always has sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.

As of December 31, 2021 and 2020, the Group had unused bank credit lines for short term borrowings amounting to $6,450,216 and $1,377,300, respectively. According to the Group’s evaluation, the working funds of the Group are sufficient to meet its entire contractual obligations and non hedging forward exchange contracts; therefore, management does not expect any significant issue regarding liquidity risk. The Company revised the plan for real estate and investments, which is expected to improve liquidity risk. Equity investments recorded as financial assets carried at cost do not have reliable market prices and are expected to have liquidity risk.

• e. Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices, will affect the Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

• (a) Currency risk

The Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the respective functional currencies of the Group’s entities, primarily the New Taiwan Dollar (TWD), US Dollar (USD), and Chinese Yuan (CNY). The currencies used in these transactions are the TWD, EUR, and USD.

Interest is denominated in the same currency as borrowings. Generally, borrowings are denominated in currencies that match the cash flows generated by the underlying operations of the Group, and the main currency is the New Taiwan Dollar and US Dollar.

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In respect of other monetary assets and liabilities denominated in foreign currencies, the Group ensures that its net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address short term imbalances.

• (b) Interest rate risk

The Group’s interest rate risk is managed by maintaining an appropriate combination of fixed and floating interest rates. The Group periodically evaluates the hedging activities and makes the interest rate and risk preference consistent, so that the hedging strategies are most cost effective.

• (c) Other market price risk

The Group is exposed to equity price risk due to the investments in equity securities. This is a strategic investment and is not held for trading. The Group does not actively trade in these investments since the management of the Group monitors and manages the equity investments by holding different investment portfolios. The Group’s management will adjust the investment portfolios of stocks and bonds based on the market price. The significant components of the investment portfolios are individually managed.

35. Capital management

Based on current operating characteristics and future development of the Group and external environmental changes, the Group is planning for the need of operating usage, research and development expenses and dividend payment, the Group meets its objectives for managing capital to safeguard the capacity to continue to operate, to continue to provide a return to shareholders, to safeguard the interests of related parties, and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, reduce the capital for redistribution to shareholders, issue new shares, or sell assets to settle any liabilities.

The Group uses the debt to equity ratio to manage capital. This ratio is the total net debt divided by the total capital. The net debt from the balance sheet is derived from the total liabilities less cash and cash equivalents. The total capital and equity include share capital, capital surplus, retained earnings, other equity interest, and non controlling interests plus net debt.

As at December 31, 2021, the Group’s capital management strategy is consistent with the prior year as at December 31, 2020, ensure financing at a reasonable cost. The Group’s debt to equity ratios at the balance sheet dates were as follows:

debt to equity ratios at the balance sheet dates were as	follows:
Total liabilities Less: cash and cash equivalents Net debt Total Equity Total capital Net Debt-to-equity ratio	December 31, 2021	December 31, 2020 $ 9,477,951 ( 1,855,653) 7,622,298 6,745,523 $ 14,367,821 53.05%	December 31, 2020
	$ 9,259,702 ( 1,761,806 ) 7,497,896 6,660,105 $ 14,158,001 52.96%

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36. Investing and financing activities not affecting current cash flow

The Group’s investing activities which did not affect the current cash flow for the years ended December 31, 2021 and 2020, were as follows:

Acquisition of property, plant and equipment Add: Notes payable January 1 Other payables January 1 Less: Interest and depreciation capitalization Notes payable December 31 Other payables December 31 Cash paid in this period Acquisition of intangible assets Add: Notes payable January 1 Other payables January 1 Less: Notes payable December 31 Other payables December 31 Cash paid in this period	For theyears ended December 31	For theyears ended December 31
	2021 $ 276,998 2,752 36,489 ( 46,539) ( 706) ( 38,584) $ 230,410 $ 10,983 178 14 - ( 149) $ 11,026	2020
		$ 420,679 - 23,448 ( 33,839) ( 2,752) ( 36,489) $ 371,047 $ 18,486 - - ( 178) ( 14) $ 18,294

The Group’s financing activities which did not affect the current cash flow for the years ended December 31, 2021 and 2020, were as follows:

Long-term borrowings Short-term borrowings Short term borrowings bills payable Total Long-term borrowings		January 1, 2021 $ 812,511 62,295 -	January 1, 2021 $ 812,511 62,295 -	January 1, 2021 $ 812,511 62,295 -	Cash flows	Non cash changes Loss of control of a subsidiary Discount Amortization of financing use commitment fees	Non cash changes Loss of control of a subsidiary Discount Amortization of financing use commitment fees	Non cash changes Loss of control of a subsidiary Discount Amortization of financing use commitment fees	Non cash changes Loss of control of a subsidiary Discount Amortization of financing use commitment fees	Non cash changes Loss of control of a subsidiary Discount Amortization of financing use commitment fees	Non cash changes Loss of control of a subsidiary Discount Amortization of financing use commitment fees	Non cash changes Loss of control of a subsidiary Discount Amortization of financing use commitment fees	December 31, 2021
						Loss of control of a subsidiary	Discount
						$ - $ ( 20,000) - ( ($ 20,000) ($ Cash flows $ 404,522	$ (		- ($ 2,870) $1,241,674 - - 93,445 152) - 79,848 152) ($ 2,870) $1,414,967 Non cash changes Amortization of financing use commitment fees December 31, 2020 $ 2,200 $ 812,511
		$ 874,806					($
									Amortization of financing use commitment fees
				$ 405,789					$ 2,200			$ 812,511

37. Related party transactions

• a. Names and relationship with related parties

The followings are entities that have had transactions with related party during the period covered in the consolidated financial statements:

Name of related party

Eastern Home Shopping & Leisure Co., Ltd. (EHS) Dongsen D'Amour SPA (Dongsen D'Amour) Natural Beauty Bio-Technology Co., Ltd. (Natural Beauty) Eastern New Retail Department (EIM) Co., Ltd. (ET New Retail Department) Happy Shopping CO., LTD. Dongsen Personal Insurance Agent Co., Ltd.

Relationship with the Group An associate An associate An associate

An associate An associate Other related parties

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Name of related party Mori International Co., Ltd. (Mori Internation) Taiwan Gift Card Co. Ltd. (Taiwan Gift Card) Enlighten Innovative Transformation Co., Ltd Dongsen Non-life Insurance Agent Co. Ltd. (Dongsen Non-life Insurance) Dongsen Health Biomedical Co., Ltd. (Dongsen Health Biomedical) Eastern Realty Co., Ltd. Good pay Web Financial Technology Co., Ltd. (Good pay) Eastern E-Commerce Co., Ltd. (Eastern E-Commerce) Quantum Entertainment Production Co., Ltd. (Quantum Entertainment) Chinese Non-Store Retailer Association (Non-Store) Xing Kai Media Co., Ltd. (Xing Kai Media) EIP TV Co., Ltd. (EIP) Taiwan Information and Communication Association Chunghwa New Media Industry Development Association (Chunghwa New Media) Dongsen Culture Foundation (Dongsen Culture) Inforcharge Co., Ltd. (Inforcharge) Hong Yang Foundation (Hong Yang) Taiwan Huangjue Trading Co., Ltd. (Huangjue) Xu Bon Development Co., Ltd. (Xu Bon) FAR RICH INTERNATIONAL CORPORATION (FAR RICH)

Relationship with the Group

Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties (Note 1) Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Key management

All Directors, Supervisors, general manager and vice personnel Key management personnel general of the Group

Note 1: Since May 28, 2021, due to the loss of control over MWT, it was not a related party.

• b. Significant transactions with related parties

• (a) Sales of goods and services

The amounts of significant sales transactions between the Group and related parties were as follows:

parties were as follows:
Associates Key management personnel Other related parties		For the years ended December 31
		2021 $ 71,554 2,286 64,148 $ 137,988		2020
				$ 45,039 - 26,569 $ 71,608

The above revenues consist of program production revenue and project planning service revenue.

Transaction terms for the above are the same as those for ordinary transactions. (b) Purchase of goods

• (b-1) The amounts of significant purchase transactions between the Group and related parties were as follows:

parties were as follows:
Associates Other related parties		For the years ended December 31
		2021 $ 22,935 91,804 $ 114,739		2020
				$ 15,836 58,383 $ 74,219

(b-2) The amount of programs production and other between the Group and related parties were as follows:

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Associates Key management Other related parties		For the years ended December 31	For the years ended December 31	For the years ended December 31
		2021 $ 2,533 2,667 105,776 $ 110,976		2020
				$ 1,440 - 58,134 $ 59,574

Transaction terms for the above are the same as those for ordinary transactions. (c) Receivables

Accounts Notes receivable Accounts receivable Accounts receivable Accounts receivable Accounts receivable Accounts receivable Accounts receivable Other receivables Other receivables Other receivables Other receivables Other receivables Other receivables	Related parties EIP Associates EHS Natural Beauty Key management Other related parties Eastern E-Commerce Other related parties Eastern E-Commerce Key management Associates Natural Beauty EHS	December 31, 2021 $ 76,382 57 13,669 3,449 2,400 2,333 7,157 254 321 400 - 1,804 6,339 $ 114,565	December 31, 2020	December 31, 2020
				$ 54,568 2 13,802 1,209 - 1,847 5,713 182 1,734 - 47 1,547 3,882 $ 84,533

The Group took installment sale with EIP, and collecting installment notes receivable at an annual interest rate of 4.5% plus interest. In addition, the interest received by the Group was $3,139 and $683 for the years ended December 31, 2021 and 2020, respectively.

(d) Payables

Accounts Accounts payable Accounts payable Accounts payable Accounts payable Accounts payable Other payables Other payables Other payables Other payables Other payables Other payables Other payables	Related parties		December 31, 2021 $ 613 86 5,275 323 2,800 - 3,954 269 25,174 - 5 2,539 $ 41,038		December 31, 2020
	EHS Quantum Entertainment Huangjue Other related parties FAR RICH Key management personnel Other related parties EIP Xu Bon Xing Kai Media Associates EHS				$ 4,084 1,977 5,148 274 - 26 322 6,377 - 2,756 32 7,049 $ 28,045

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(e) Prepayments, advance receipts and contract liabilities

Details of advance receipts / prepayments from related parties to the Group were as follows:

Accounts Prepayments Prepayments Advance receipts Contract liabilities Contract liabilities	Relatedparties		December 31, 2021		December 31, 2020
	Other related parties Associates Quantum Entertainment Other related parties Associates		$ 180 255 $ 435 $ 4,114 2,401 - $ 6,515		$ 140 15 $ 155 $ 4,114 - 16 $ 4,130

• (f) Borrowings from related parties

The amount of borrowing from related parties as of December 31, 2021 and 2020 was nil.

Interest expenses:

est expenses:
Fangcheng Su EHS	December 31, 2021 $ - 2,975 $ 2,975	December 31, 2020
		$ 1,582 5,387 $ 6,969

Interest which results from the unsecured borrowings by the Group from related parties would be calculated based on the average rates in the current year obtained from financial institutions. As of December 31, 2021 and 2020, the Group’ s interest payables were all nil, respectively.

• (g) Endorsement / Guarantee provided

For the years ended December 31, 2021 and 2020 the remuneration paid to related parties for providing guarantees on the loans taken out by the Group was amounted to $531 and $284, respectively. As of December 31, 2021 and 2020, the Group’ s remuneration payable was amounted to $183 and $98, respectively.

• (h) Leases

• (h-1)The Group rents out part of its office space and equipment to fulfill related parties’ business requirements. The rental revenues for the years ended December 31, 2021 and 2020 were amounted to $711 and $368, respectively.

• (h-2) As the Group applied on the remission of short-term lease contract of IFRS 16, the rental expenses for the years ended December 31, 2021 and 2020 were amounted to $1,970 and $744, respectively.

(h-3)Transaction terms for the above are the same as those for ordinary transactions.

• (i) Acqusition of property, plant and equipment

Related parties Other related parties		For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
		2021 $ 267		2020 $ 2,075

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• (j) Acqusition of intangiable assets

Acqusition of intangiable assets
Related parties Associates		For the Years Ended December 31
		2021 $ 919		2020 $ 901

• (k) Other

  • (k-1) For the years ended December 31, 2021 and 2020, the Group paid operating fees to associates, key management, and other related parties to fulfill its business requirements were amounted to $8,312 and $15,063, respectively.

  • (k-2) In order to follow its operating plan, the Group donated $3,000 and $3,500 to related parties in related industries for the years ended December 31, 2021 and 2020, respectively.

  • (k-3) For the years ended December 31, 2021 and 2020, the Group received non-operating revenue from related parties amounted to $5,228 and $3,050, respectively.

  • (k-4) For the years ended December 31, 2021 and 2020, the Group paid non-operating expenses to related parties amounted $52 and $464, respectively.

  • (k-5) In January 2020, the Group sold the shares of Eastern Biotechnology (Shanghai) to EHS at the amount of $734 (CNY $200) and recognized gain on disposal of $81. The transaction price has been fully received.

  • (k-6) In May 2021, the Group sold the shares of MWT at the net price $35,294 and recognized loss on disposal of the investment amounted to $4,327.

  • (k-7) In December 2021, the Group acquired the shares of Oscar, Pet kingdom and Kaou Sin at the price $44,722. The transaction price has been fully paid.

• c. Key management personnel compensation

Short-term employee benefits 38. Pledged assets Pledged assets of the Group were as follows: Assets Purpose of pledge Property, plant and equipment Short-term and long- term loans Investments accounted for using equity method Long- term loans Other current financial assets-demand deposits Reserve and its interest 〃 Letter of credit 〃 Security for issuance of travel vouchers at travel fair Refundable deposits Bid bonds, performance bonds and security deposits Other non-current financial assets－reserve account Deposit in long-term loan Investments accounted for using equity method for subsidiary's stocks (Note) Long-term loan		For theyears Ended December 31	For theyears Ended December 31	For theyears Ended December 31	For theyears Ended December 31
		2021 $ 107,045 December 31, 2021 $ 968,538 155,809 31,285 1,198 2,242 530,026 25,272 45,053 $ 1,759,423		2020 $ 101,840 December 31, 2020
					$ 937,374 - 14,169 14,503 12,984 491,006 33,760 28,133 $ 1,531,929

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Note: The investments accounted for using equity method for subsidiary’s stocks have been written off in the preparation of consolidated financial statement.

39. Significant commitments and contingencies

• a. Major commitments were as follows:

• (a) Unused standby letters of credit:

Unused standby letters of credit:
Unused standby letters of credit	December 31, 2021 $ 8,954	December 31, 2020
		$ 101,604

• (b) The subsidiary-EIC had signed a contract with Sunny Bank Co., Ltd., and the bank provided guarantee with sufficient performance guarantee according to the contract. As of December 31, 2021, the unused e-voucher guaranteed by the bank was $2,242.

• (c)The subsidiary-EHR had signed contracts relating to manage resorts in Yilan and also had signed services agreements relating to the hotel’s business and authorization with Formosa international hotels corporation. EHR should pay expenses proportionally while the services provided by Formosa international hotels corporation achieve the standards as the contracts recorded.

• (d)Unrecognized contractual commitments:

The Group’s unrecognized contractual commitments are as follows:

Total contract price Payout amount		December 31, 2021 $ 616,332 $ 340,053		December 31, 2020
				$ 712,178 $ 237,869

• b. Contingent liabilities were as follows:

• (a)On October 27, 2008, the Securities and Futures Investors Protection Center (the SFIPC) filed a lawsuit to the Taipei District Court against the ex-chairman and the general manager of the Company, together with all the previous directors and supervisors, alleging the offense of gaining an illegal benefit for Chia Hsin and Synthetic Fiber Co., Ltd. as well as for the family members of the ex-chairman. The prosecution is based on the alleged ill-gotten assets from the Company by means of false commodity transactions and capital increment in the name of Eastern International Lease Finance Co., Ltd. and Tung Kai Lease Finance Co., Ltd. (both are subsidiaries of the Company). The SFIPC also demanded the compensation of $41,038. The Taipei District Court ruled that the Company violated the Commercial Company Act. However, both the ex-chairman and the general manager were acquitted, and not only did the Company did not bear any losses from the said transaction above, but on the contrary, it gained a profit amounting to $6,894, plus an additional 5% interest arising from the delayed payment amounting to $6,884 with a total amount around $13,000. In other words, the transaction did not do any damage to the Company and its shareholders. As a result, the appeal filed against the Company was denied by the Taipei District Court on December 5, 2012. However, the SFIPC was not satisfied with the decision made by the court. Therefore, it filed another appeal, this time with the Taiwan High Court, demanding compensation amounting to $22,664. The appeal was denied on December 3, 2013. Nevertheless, the SFIPC filed an appeal once more with the Taiwan High Court on December 24, 2013. The case was transferred from the Supreme Court to the High Court on April 23, 2015, for further investigation. On May 10, 2017, the Taiwan High Court ruled against SFIPC. Therefore, SFIPC filed an appeal to the Supreme Court on June 6, 2017. On February 23, 2021, the Taiwan High Court still ruled against SFIPC. However, SFIPC filed an appeal and the Supreme Court retimed to the High Court for a third trial. Currently, the arbitration process is still in progress and the results have yet

～ 81 ～

to be determined.

• (b) The Company and its subsidiary, FESS Panama, jointly chartered and returned the ship to South Korea’s Sammok Shipping Co., Ltd. (hereinafter referred to as Sammok) at Kaohsiung Port in accordance with the contract signed on August 10, 2018. Sammok believed that the ship still has many defects due to its usual operation and negligence of maintenance; hence, submitted arbitration to the London Maritime Arbitration Association. The Company also filed a statement of defense to the arbitral tribunal in July 2019. Currently, the arbitration process is still in progress and the results have yet to be determined.

• (c) The Company established a legal affair department and hired external counselors to handle its legal affairs. As of December 31, 2021 and 2020, all unsettled lawsuits had no impact on its financial and business operation.

40. Losses Due to Major Disasters: None.

41. Subsequent Events:

• a. The consolidated subsidiary, ET Pet would acquire the rest 11.49% interests in Oscar. Please refer to Note 14 for the details.

• b. On March 23, 2022, a resolution was passed in the board meeting of the Company for the capital reduction. Please refer to Note 28 for the details.

42. Other

• A summary of current period employee benefits, depreciation, and amortization, by function, is as follows:

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By function For the years ended December 31
2021 2020
Operating Operating Operating Operating
By nature cost expense Total cost expense Total
Employee benefits
Salary $ 645,992 $ 699,059 $ 1,345,051 $ 582,239 $ 621,248 $ 1,203,487
Health and labor
insurance 61,320 56,614 117,934 50,704 51,372 102,076
Pension 29,387 27,400 56,787 26,213 26,973 53,186
Remuneration of - 34,997 34,997 - 30,812 30,812
directors
Others 9,559 12,252 21,811 19,789 40,080 59,869
Depreciation expense 976,784 339,203 1,315,987 917,876 319,587 1,237,463
Amortization expense 14,169 26,232 40,401 12,918 21,098 34,016
----- End of picture text -----

43. Other disclosures

• a. Information on significant transactions:

The following is the information on significant transactions required by the Regulations Governing the Preparation of Financial Reports by Securities Issuers for the Group for the years ended December 31, 2021.

• (a) Please refer to Table 1 for the loans to other parties.

• (b) Please refer to Table 2 for the guarantees and endorsements for other parties.

• (c) Please refer to Table 3 for the securities held as of December 31, 2021 (excluding investment in subsidiaries, associates and joint ventures).

• (d) Please refer to Table 4 for the individual securities acquired or disposed of at costs or prices of at least $300 million or 20% of the paid-in capital.

• (e) Acquisition of individual real estate at costs of at least $300 million or 20% of the paid-in capital: None.

• (f) Disposal of individual real estate at prices of at least $300 million or 20% of the

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paid-in capital: None.

• (g) Total purchases from or sales to related parties of at least $100 million or 20% of the paid-in capital: None.

• (h) Please refer to Table 5 for the receivables from related parties of at least $100 million or 20% of the paid-in capital.

• (i) Trading in derivative instruments: None.

• (j) Please refer to Table 6 for the business relationships and significant intercompany transactions.

• b. Information on investees

Please refer to Table 7 for the information on investees for the years ended December 31, 2021.

• c. Information on investment in Mainland China

• (a) Please refer to Table 8 for the relevant information such as the name and main business items of the investee company in Mainland China.

• (b) Please refer to Table 8 for the limitation on investment in Mainland China

• (c) Please refer to Table 8 for the significant transactions with investee companies in Mainland China.

d. Major shareholders

Please refer to Table 9 for the major shareholders for the years ended December 31, 2021. 44. Segment information

• a. General Information

The Group’s reportable segments are warehousing, trading, media, and tourism. The warehousing segment operates a cargo storage business; the trading segment operates a retail business; the media segment operates a channel agency and advertising business; the tourism segment operates a hotel and catering business.

• b. Reportable segment profit or loss, segment assets, segment liabilities, and their measurement and reconciliation

The Group uses the internal management report that the chief operating decision maker reviews as the basis to determine resource allocation and make a performance evaluation. The internal management report includes profit before taxation, excluding any extraordinary activity and foreign exchange gain or losses, because taxation, extraordinary activity, and foreign exchange gains or losses are managed on a group basis, and hence they are not able to be allocated to each reportable segment. In addition, not all reportable segments include depreciation and amortization of significant non cash items. The reportable amount is similar to that in the report used by the chief operating decision maker.

Except for the recognition and measurement of pension cost, which is on a cash basis, there was no material inconsistency between the accounting policies of the operating segments and the accounting policies described in Note 4. The intercompany transaction price was the same as that with other customers, and the price was based on the market value.

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The Group’s operating segment information and reconciliation are as follows:

Revenue Revenue from external customers Interest revenue Total revenue Interest expense Depreciation and amortization Share of profit of associates and joint ventures accounted for using equity method Material non-moneytary item: impairement losses Reportable segment profit or loss before tax Revenue Revenue from external customers Interest revenue Total revenue Interest expense Depreciation and amortization Share of profit of associates and joint ventures accounted for using equity method Material non-moneytary item: impairement losses Reportable segment profit or loss before tax			**For theyear ended December 31, **	**For theyear ended December 31, **	**For theyear ended December 31, **	**For theyear ended December 31, **	**For theyear ended December 31, **	2021	2021
	Warehousing	Trading $2,099,886 132	Trading	Media $1,998,101 710	Media		Tourism	Others $ 44,024 4,815	Others	Total $5,511,919 5,682	Total
	$ 1,369,908 - $ 1,369,908 $ 110,918 245,399 - - $ 364,442
		$2,100,018		$1,998,811				$ 48,839 $ 1,774 16,705 7,284 - $53,539 2020		$5,517,601
										$ 224,123 1,356,388 467,644 95,699 $ 710,152
	Warehousing	Trading $1,839,727 693	Trading	Media $1,434,819 801	Media	Tourism $ - 2 $ 2 $ 7,560 61,993 - - ($95,969)	Tourism	Others $115,464 13,457	Others	Total $4,728,014 14,953	**Total **
	$ 1,338,004 - $ 1,338,004 $ 115,658 243,153 - 5,933 $ 498,574
		$1,840,420		$1,435,620				$128,921		$4,742,967
		$ 33,968 220,830 366,418 - $ 345,745		$ 65,808 741,469 - 150,403 ($365,908)				$ 2,751 4,034 ( 16,643) - ($72,723)		$ 225,745 1,271,479 349,775 156,336 $ 309,719

Information on the Group’s reportable segment assets and liabilities were not provided to the chief operating decision maker, so the related information is not disclosed.

• c. Information about products and services

Information on the Group’s reportable segments (excluding discontinued operation amount) is classified by different products and services, and the relevant information is disclosed in the revenue from external customers. Therefore, the Group would not make any additional disclosure regarding the revenue from external customers by products and services.

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d. Geographical information

In presenting information on the basis of geography, segment revenue is based on the geographical location of customers, and segment assets are based on the geographical location of the assets.

assets.
Region External revenue: Taiwan China Non-current assets Taiwan	For the years ended December 31 2021 2020 $ 5,505,284 $ 4,728,014 6,635 - $ 5,511,919 $ 4,728,014
	$ 8,541,971 $ 9,480,730

Non current assets include property, plant and equipment, intangible assets, right of use assets, and other non current assets, excluding financial instruments, deferred tax assets and pension fund assets.

e. Information about major customers

The Group does not concentrate on a single customer; therefore, there is no need to disclose any information.

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Loans to other parties For the years ended December 31, 2021 (Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items)

Table 1

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

No. Name of lender Name of Account name Related Highest balance Ending Actual Range of Purposes of fund Transaction Reasons for Allowance Collateral Individual funding Maximum
borrower party of financing to balance usage amount interest rates financing for the amount for short-term for bad debt loan limits limit of fund financing
other parties during the during the borrower (Note 1) business between financing Item Value
during the period period period % two parties
0 The Company ET New Media Other receivables - Yes $ 700,000 $ 600,000 $ 400,000 3 2 - Operation - $ - $2,497,473 $3,746,209
related parties requirements (Note 2) (Note 2)
0 〃 EHR 〃 Yes 400,000 - - 3 2 - 〃 - - 2,497,473 3,746,209
(Note 2) (Note 2)
0 〃 MWT Other receivables No 50,000 - - 4 2 - 〃 - - 312,184 3,746,209
(Note 10) (Note 10)
0 〃 ET Pet Other receivables - Yes 200,000 100,000 - 3 2 - 〃 - - 2,497,473 3,746,209
related parties (Note 2) (Note 2)
1 EIC ET New Media 〃 Yes 300,000 300,000 230,000 3 2 - 〃 - - 421,046 631,569
(Note 3) (Note 3)
1 〃 EHR 〃 Yes 50,000 50,000 - 3 2 - 〃 - - 421,046 631,569
(Note 3) (Note 3)
2 TKLF ET New Media 〃 Yes 150,000 150,000 150,000 3 2 - 〃 - - 266,961 400,441
(Note 4) (Note 4)
2 〃 Sunflower Other receivables No 30,000 30,000 30,000 8 2 - 〃 - Tucheng land 52,323 33,370 400,441
leisure mortgage (Note 4) (Note 4)
3 EILF ET New Media Other receivables - Yes 150,000 150,000 150,000 3 2 - 〃 - - 242,807 364,210
related parties (Note 5) (Note 5)
4 Grand The Company 〃 Yes 57,021 57,021 52,881 1 2 - 〃 - - 56,188 112,376
Richness (Note 6) (Note 6)
(Hong
Kong)
5 GRAND The Company 〃 Yes 53,146 53,146 53,146 1 2 - 〃 - - 75,966 151,932
SCENE (Note 7) (Note 7)
TRADING
(HONG
KONG)
6 Eastern Media The Company 〃 Yes 41,243 41,243 41,243 1 2 - 〃 - - 45,836 91,672
Communicat (Note 8) (Note 8)
ion (Hong
Kong)
7 FESS- Panama The Company 〃 Yes 44,288 44,288 29,745 1 2 - 〃 - - 2,006,571 4,013,142
(Note 9) (Note 9)
----- End of picture text -----

Note 1: Lending of capital has the following two types:

• (1) Those with business dealings.

• (2) The necessity for short-term financing.

Note 2: The Company’s total amount available for lending shall not exceed 60% of its net worth. For subsidiaries where the Company holds more than 50% of the shares, the individual amount available for lending shall not exceed 40% of its net worth in the most recent financial statements. For subsidiaries where the Company holds less than 50% of the shares, the individual amount available for lending shall not exceed 5% of its net worth in the most recent financial statements.

Note 3: For EIC, the aggregate amount available for lending shall not exceed 60% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company, subsidiaries or to its parent company’s subsidiary company shall not exceed 40% of its net worth in the most recent financial statements.

• Note 4: For TKLF, the aggregate amount available for lending shall not exceed 60% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company or to its parent company’s subsidiary company shall not exceed 40% of its net worth in the most recent financial statements. The individual amount available for lending shall not exceed 5% of its net worth in the most recent financial statements.

Note 5: For EILF, the aggregate amount available for lending shall not exceed 60% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company or to its parent company’s subsidiary company shall not exceed 40% of its net worth in the most recent financial statements. The individual amount available for lending to other companies short-term financing facility, if necessary, shall not exceed 5% of its net worth in the most recent financial statements. Note 6: For Grand Richness (Hong Kong), the aggregate amount available for lending shall not exceed 200% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company shall not exceed 100% of its net worth in the most recent financial statements.

• Note 7: For GRAND SCENE TRADING (HONG KONG), the aggregate amount available for lending shall not exceed 200% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company shall not exceed 100% of its net worth in the most recent financial statements.

Note 8: For Eastern Media Communication (Hong Kong), the aggregate amount available for lending shall not exceed 200% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company shall not exceed 100% of its net worth in the most recent financial statements.

Note 9: For FESS-Panama, the aggregate amount available for lending shall not exceed 200% of its net worth in the most recent financial statements. The individual amount available for lending to its parent company shall not exceed 100% of its net worth in the most recent financial statements.

Note 10: Since MTW was not the subidiay of the Group on May 28, 2021, the individual amount available for lending shall follow the limits of subsidiaries where the Company holds less than 50% of the shares. Note 11: The aforementioned intercompany transactions have been eliminated in the consolidated financial statements.

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Guarantees and endorsements for other parties For the years ended December 31, 2021 (Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 2

==> picture [1093 x 367] intentionally omitted <==

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No. Name of Counter party of guarantee and Limitation on Highest balance for Balance of Actual usage Property pledged Ratio of accumulated Maximum amount Parent company Subsidiary Endorsements/
guarantor endorsement amount of guarantees and guarantees and amount during for guarantees amounts of guarantees for guarantees and endorsements / endorsements / guarantees to third
Name Relationship with the guarantees and endorsements during endorsements as of the period and endorsements and endorsements to net endorsements guarantees to third guarantees to third parties on behalf of
endorsements for a the period reporting date (Amount) worth of the latest parties on behalf of parties on behalf of companies in Mainland
Company (Note I)
specific enterprise financial statements subsidiary parent company China
0 The Company ET New Media 2 $ 24,974,728 $ 306,792 $ 156,792 $ 119,431 $ - 2.51% $ 24,974,728 Y N N
(Note 2) (Note 2)
0 The Company EHR 2 24,974,728 800,000 800,000 760,000 45,053 12.81% 24,974,728 Y N N
(Note 2) (Note 2)
0 The Company Eastern Asset 2 24,974,728 5,875,000 5,875,000 - - 94.10% 24,974,728 Y N N
(Note 2) (Note 2)
0 The Company Kaou Sin 2 24,974,728 5,000 5,000 3,750 - 0.08% 24,974,728 Y N N
(Note 2) (Note 2)
0 The Company Pet Kingdom 2 24,974,728 15,000 15,000 8,625 - 0.24% 24,974,728 Y N N
(Note 2) (Note 2)
0 The Company Oscar 2 24,974,728 250,000 250,000 157,000 - 4.00% 24,974,728 Y N N
(Note 2) (Note 2)
0 The Company ET Pet 2 24,974,728 1,870,663 1,870,663 563,445 121,397 29.96% 24,974,728 Y N N
(Note 2) (Note 2)
0 The Company TKLF 2 24,974,728 50,000 50,000 - - 0.80% 24,974,728 Y N N
(Note 2) (Note 2)
0 The Company EILF 2 24,974,728 50,000 50,000 - - 0.80% 24,974,728 Y N N
(Note 2) (Note 2)
0 The Company MWT 1 - 30,000 - - - - % 24,974,728 N N N
(Note 6) (Note 2)
1 ET New Media ET Pet 2 5,762,276 400,000 - - - - % 5,762,276 N N N
(Note 3) (Note 3)
2 ET Pet ET New Media 3 3,563,884 400,000 - - - - % 3,563,884 N N N
(Note 4) (Note 4)
3 EIC ET Pet 4 624,368 220,000 220,000 62,318 34,412 20.90% 624,368 N N N
(Note 5) (Note 5)
----- End of picture text -----

• Note 1: The relationship between the one providing endorsements/guarantees and the one receiving endorsements/guarantees is classified into seven types:

• (1) The intercompany business transaction

• (2) Companies in which the Company directly and indirectly holds more than 50% of the voting rights.

• (3) Companies that directly and indirectly hold more than 50% of the voting shares of the Company.

• (4) The Company holds, directly or indirectly, 90% or more of the voting shares of the Company.

• (5) Company that is mutually protected under contractual requirements based on the needs of the contractor.

(6) Company that is endorsed by its shareholders in accordance with its shareholding ratio because of the joint investment relationship.

(7) Performance guarantees for pre-sale contracts under the Consumer Protection Act.

• Note 2: The Company’s aggregate amount allows endorsement or guarantee that does not exceed 400% of its net worth in the most recent financial statements. The individual amount allows endorsement or guarantee to subsidiaries where the Group holds more than 50% of the shares that does not exceed 400% of its net worth in the most recent financial statements.

• Note 3: For ET New Media, the aggregate amount allows an endorsement or guarantee that does not exceed 300% of its total assets in the most recent financial statements. The individual amount allows endorsement or guarantee to subsidiaries where the Group holds more than 50% of the shares that does not exceed 300% of its total assets in the most recent financial statements.

• Note 4: For ET Pet, the aggregate amount allows an endorsement or guarantee that does not exceed 300% of its total assets in the most recent financial statements. The individual amount allows endorsement or guarantee to subsidiaries where the Group holds more than 50% of the shares that does not exceed 300% of its total assets in the most recent financial statements.

• Note 5: For EIC, the aggregate amount allows an endorsement or guarantee that does not exceed 500% of its total assets in the most recent financial statements. The individual amount allows endorsement or guarantee to subsidiaries where the Company, hokding more than 90% of shares of EIC, holds more than 90% of the shares that does not exceed 500% of its total assets or 10% of the Company’s net woth in the most recent financial statements. The limit on endorsement or guarantee was determined by 500% of EIC’s total assets of 10% of the Company’s net worth whichover is lower.

• Note 6: Since MWT was not the subsidiary of the Group on May 28, 2021, the amount of guarantees and endorsements was cancelled.

～ 87 ～

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Securities held

December 31, 2021 (Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 3

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Name of holder Category and name of security Relationship with Account title Ending balance Highest
company Shares/Units Carrying value Percentage of ownership Fair value percentage of Note
Owner ship
The Company China Development Financial Holdings - Financial assets at fair value through profit or loss 1 $ - - % $ - - %
〃 Phoenix New Media Co., Ltd - 〃 2,000 3 - % 3 - %
〃 Taiwan Cement Co., Ltd. - 〃 6,200,000 297,600 0.10 % 297,600 0.10 %
〃 Formosa Plastics corporation - 〃 3,734,000 388,336 0.06 % 388,336 0.06 %
〃 Kaohsiung Harbor Stevedoring Co., Ltd. - Non-current financial assets at fair value through other 750,000 7,500 15.00 % 7,500 15.00 %
comprehensive income
〃 Leo Exploitation Co., Ltd. - 〃 165,663 - 11.43 % - 11.43 %
EILF Formosa Plastics corporation - Financial assets at fair value through profit or loss 700,000 72,800 0.01 % 72,800 0.01 %
〃 Taiwan Semiconductor Manufacturing Co., Ltd. - 〃 120,000 73,800 - % 73,800 - %
〃 China Steel Corporation - 〃 150,000 5,303 - % 5,303 - %
TKLF Taiwan Cement Co., Ltd. - 〃 1,150,009 55,200 0.02 % 55,200 0.02 %
〃 Taiwan Semiconductor Manufacturing Co., Ltd. - 〃 40,000 24,600 - % 24,600 - %
〃 Formosa Plastics corporation - 〃 200,000 20,800 - % 20,800 - %
〃 China Steel Corporation - 〃 650,000 22,978 - % 22,978 - %
Oscar COTA Commercial Bank, Ltd. - Non-current financial assets at fair value through other 100 10 - % 10 - %
comprehensive income
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～ 88 ～

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Individual securities acquired or disposed of at costs or prices of at least $300 million or 20% of the paid-in capital For the years ended December 31, 2021

(Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 4

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Name of the company Category and name Account name Name of counter party Relationship Beginning Balance Purchases Sales Ending balance
of security with the Shares/ Amount Shares/ Amount Shares/ Cost Gain (loss) on Shares/ Amount
company Units (Note 1) Units Units Price (Note 1) disposal Units (Note 1)
The Company Taiwan Cement Financial assets at fair value
Co., Ltd. through profit or loss - - 5,350,000 $ 231,120 6,550,000 $ 335,564 5,700,000 $ 259,457 $ 259,457 $ - 6,200,000 $ 297,600
〃 Formosa Plastics 〃
corporation - - - - 6,554,000 679,258 2,820,000 295,829 295,829 - 3,734,000 388,336
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Note 1: Including exchange differences on financial assets designated at fair value, investments accounted for using equity method, and translation.

～ 89 ～

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Receivables from related parties of at least $100 million or 20% of the paid-in capital December 31, 2021

(Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 5

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Name of company Counter party Nature of relationship Ending balance Turnover rate Overdue Amounts received in subsequent period Allowance for bad debts
Amount Action taken
The Company ET New Media Subsidiary $ 404,814 Not applicable $ - - $ 4,814 $ -
EIC ET New Media Subsidiary 230,567 Not applicable - - 567 -
EILF ET New Media Subsidiary 150,370 Not applicable - - 370 -
TKLF ET New Media Subsidiary 150,370 Not applicable - - 370 -
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～ 90 ～

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Business relationships and significant intercompany transactions December 31, 2021

(Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 6

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No. Name of company Name of counter party Nature of relationship Intercompany transactions
Account name Amount Trading terms Percentage of the consolidated net revenue or total assets
0 The Company ET New Media 1 Other receivables - related parties $ 404,814 Refer to contract terms or market price 2.54%
1 EIC ET New Media 3 Other receivables - related parties 230,567 Refer to contract terms or market price 1.45%
2 EILF ET New Media 3 Other receivables - related parties 150,370 Refer to contract terms or market price 0.94%
3 TKLF ET New Media 3 Other receivables - related parties 150,370 Refer to contract terms or market price 0.94%
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Note 1 ： For the inter-company business relationship and transaction condition in the “Number” column, the labeling method is as follows:

1. Parent company - 0.

2. Subsidiaries - in sequence from 1.

Note 2 ： Relationship is classified into three types:

1. Parent company to subsidiary

2. Subsidiary to parent company

3. Subsidiary to subsidiary

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EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Information on investees

For the years ended December 31, 2021 (Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 7

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Name of Name of investee Location Main businesses and products Original investment amount Ending balance Highest Net income (losses) Share of profits/ Note
investor December 31, December 31, Shares/Units Percentage of Carrying value of investee losses of investee
2021 2020 ownership percentage of
Owner ship
The Company FESS-Bermuda Bermuda Holding company $ 32,161 $ 32,161 600,000 100.00% $ 867 100.00% ($ 742 ) ($ 742) Subsidiary
The Company FESS-Panama Panama Holding company
2,245,038 2,245,038 71,700 100.00% 2,006,571 100.00% 64,016 64,016 Subsidiary
The Company Grand Richness Hong Kong Holding company
(Hong Kong) 672,603 672,603 16,214,616 100.00% 56,187 100.00% ( 3,469 ) ( 3,469 ) Subsidiary
The Company EIC Taiwan General investing
500,525 500,525 67,641,445 97.90% 1,030,509 97.90% 313,665 307,078 Subsidiary
The Company EILF Taiwan Planning and design and leasing of cable TV broadcasting
system 391,195 391,195 40,690,330 53.77% 326,392 53.77% ( 13,060 ) ( 7,022 ) Subsidiary
The Company TKLF Taiwan Planning and design and leasing of cable TV broadcasting
system 391,613 391,613 40,847,294 53.76% 358,823 53.76% ( 5,405 ) ( 2,906 ) Subsidiary
The Company MWT Taiwan Application Service - 35,400 - -% - 51.00% 3,562 1,816 Note 2
The Company EHS Taiwan Department stores, supermarkets, online stores
81,978 81,978 6,637,500 6.51% 126,893 6.51% 1,808,488 117,781 Associates
The Company ET New Media Taiwan Advertising, online newspaper, Produce a broadcast program
535,225 535,225 53,522,508 89.20% ( 495,987 ) 89.20% ( 14,245 ) ( 12,707 ) Subsidiary
The Company EHR Taiwan Management & consultancy services, leisure site management,
catering business, sports training business, catering business 329,731 208,931 32,973,086 60.40% 45,053 60.40% ( 171,987 ) ( 103,880 ) Subsidiary
The Company Eastern Asset Taiwan Real estate leasing
495,000 495,000 49,500,000 55.00% 494,013 55.00% ( 1,366 ) ( 751 ) Subsidiary
EIC ET New Media Taiwan Advertising, online newspaper, Produce a broadcast program Exempt from
6,275 6,275 627,492 1.05% ( 5,815 ) 1.05% ( 14,245 ) disclosure Subsidiary
EIC EHS Taiwan Department stores, supermarkets, online stores
243,794 243,794 19,726,660 19.36% 377,129 19.36% 1,808,488 〃 Associates
EIC TKLF Taiwan Planning and design and leasing of cable TV broadcasting
system 77,115 77,115 7,597,500 10.00% 66,740 10.00% ( 5,405 ) 〃 Subsidiary
EIC EILF Taiwan Planning and design and leasing of cable TV broadcasting
system 74,464 74,464 7,567,500 10.00% 60,702 10.00% ( 13,060 ) 〃 Subsidiary
EIC EHR Taiwan Management & consultancy services, leisure site management,
catering business, sports training business, catering business
72,060 45,660 7,206,038 13.20% 9,846 13.20% ( 171,987 ) 〃 Subsidiary
TKLF EILF Taiwan Planning and design and leasing of cable TV broadcasting
system 269,766 269,766 27,243,000 36.00% 218,526 36.00% ( 13,060 ) 〃 Subsidiary
TKLF EHR Taiwan Management & consultancy services, leisure site management,
catering business, sports training business, catering business 72,060 45,660 7,206,038 13.20% 9,846 13.20% ( 171,987 ) 〃 Subsidiary
----- End of picture text -----

(to be continued)

～ 92 ～

(continued)

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Name of Name of investee Location Main businesses and products Original investment amount Ending balance Highest Net income (losses) Share of profits/ Note
investor December 31, December 31, Shares/Units Percentage of Carrying value of investee losses of investee
2021 2020 ownership percentage of
Owner ship
EILF TKLF Taiwan Planning and design and leasing of cable TV broadcasting
Exempt from
system $ 278,342 $ 278,342 27,351,000 36.00% $ 240,265 36.00% ( $ 5,405) disclosure Subsidiary
EILF EHR Taiwan Management & consultancy services, leisure site management,
catering business, sports training business, catering business 72,060 45,660 7,206,038 13.20% 9,846 13.20% ( 171,987) 〃 Subsidiary
FESS-Panama GSMC-Cayman
Cayman Holding company
Islands 137,363 137,363 450,000 100.00% 78,306 100.00% 1,445 〃 Subsidiary
FESS-Panama
Eastern Media Hong Kong Holding company
Communication
(Hong Kong) 305 305 28,569,840 100.00% 45,836 100.00% ( 70 ) 〃 Subsidiary
FESS-Panama
Natural Beauty Cayman Investing activities
Islands 2,060,871 2,060,871 600,630,280 30.00% 1,905,459 30.00% 127,059 〃 Associates
GSMC-cayman GRAND SCENE Hong Kong Investing activities
TRADING
(HONG KONG) 125,153 125,153 3,198,000 100.00% 75,966 100.00% 1,811 〃 Subsidiary
ET New Media Show off Taiwan Video advertising service - 100,000 - -% - -% - 〃 Note 1
ET New Media Dung sen shin Taiwan Audiovisual and singing, information leisure
guang yun 100 100 10,000 100.00% 301 100.00% ( 141 ) 〃 Subsidiary
ET New Media Dung sen dian jing Taiwan Amusement park information leisure
yun 100 100 10,000 100.00% ( 45) 100.00% ( 2 ) 〃 Subsidiary
ET New Media Dung sen shin wen Taiwan Amusement park information leisure
yun 5,000 5,000 500,000 100.00% 3,364 100.00% ( 944 ) 〃 Subsidiary
ET New Media Dung sen min diau Taiwan Consulting management, market research and opinion poll
yun 1,000 1,000 100,000 100.00% 912 100.00% ( 74 ) 〃 Subsidiary
ET New Media ET Pet Taiwan Pet food and supplies and providing pet beauty service 185,000 185,000 18,500,000 92.50% 34,420 92.50% ( 51,968 ) 〃 Subsidiary
ET Pet Oscar Taiwan Pet food and supplies and providing pet beauty service 334,788 301,202 5,391,500 88.51% 360,043 88.51% 4,884 〃 Subsidiary
ET Pet Pet Kingdom Taiwan Pet food and supplies and providing pet beauty service 45,997 36,836 4,300,000 100.00% 60,929 100.00% 8,660 〃 Subsidiary
ET Pet Kaou Sin Taiwan Pet food and supplies and providing pet beauty service 9,916 7,941 100,000 100.00% 11,109 100.00% 3,421 〃 Subsidiary
----- End of picture text -----

Note 1: Show off was dissolved on July 30, 2020. The processure of liquidation was finished on July 9, 2021.

Note 2: The Company resolved on May 6, 2021 to dispose of the entire equity interests in the subsidiary, MWT. The share transfer registration procedures were finished on May 28, 2021.

～ 93 ～

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Information on investment in Mainland China For the years ended December 31, 2021 (Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 8

1. Relevant information such as the name and main business items of the investee company in Mainland China:

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Name of investee. Main businesses Total amount of Method of Accumulated outflow of Investment flows Accumulated outflow of Net income Percentage of Highest Investment Book Accumulated
and products paid in capital investment investment from Taiwan as Outflow Inflow investment from Taiwan as (losses) of the ownership percentage of income (losses) Value remittance of
of January 1, 2021 of December 31, 2021 investee Owner ship earnings in current
period
Eastern Enterprise Operating international $ - Note 2 $ 905,136 - - $ 905,136 $ - -% -% $ - $ - $ -
Development circulation logistics business
(Shanghai) Ltd
Ding Kai (Shanghai) Wholesale and retailing goods - Note 3 354,373 - - 354,373 - -% -% - - -
Sheng Hang Wholesale and retailing goods - Note 4 165,996 - - 165,996 - -% -% - - -
(Shanghai)
RICHNESS Retail of clothing, garments 1,089,345 Note 5 1,054,608 - - 1,054,608 ( 728 ) 100.00% 100.00% ( 728 ) 3,987 -
TRADING and accessories, household
(SHANGHAI) electrical equipment and
supplies, clocks, watches
and spectacles, jewelry and
precious metals, food goods,
medicines, cosmetics and
cleaning products, etc.
Nanjing Yun Fu Wholesale trading 45,129 Note 6 83,040 - - 83,040 ( 57 ) 100.00% 100.00% ( 57 ) 4,128 -
Jiangsu Sen Fu Da Research and development of 43,439 Note 7 - - - - - 34.00% 34.00% - - -
film and television
technology; research and
development and sales of
toys, clothing; planning and
implementation of cultural
and artistic exchange
activities
Shanghai Rich Producing TV programs, - Note 8 - - - - ( 22 ) -% 100.00% ( 22 ) - -
wholesale
Shanghai Natural Production and sale of beauty 434,041 Note 5 - - - - 11,394 30.00% 30.00% 3,418 146,880 -
Beauty Fuli care products and provision
Cosmetics Company of beauty and body care
services
Limited
Shanghai Natural Sales of health care products 93,484 Note 5 - - - - ( 1,368 ) 30.00% 30.00% ( 410 ) 30,742 -
Beauty Bio-Med
Company Limited
Shanghai Natural Production and sale of beauty 1,053,273 Note 5 - - - - 7,673 30.00% 30.00% 2,302 309,405 -
Beauty Fuli care products and provision
Cosmetics Company of beauty and body care
services
Limited
----- End of picture text -----

Note 1: The investment gain (loss) was recognized based on the investees’ audited financial statements.

Note 2: The Group indirectly made the investment through FESS-Panama, and was complete disposal of all shares on April 23, 2018.

Note 3: The Group indirectly made the investment through Grand Richness Hong Kong, and the investment completed cancellation of registration on September 21, 2018. Note 4: The Group indirectly made the investment through Grand Richness Hong Kong, and the investment completed cancellation of registration on February 21, 2019. Note 5: The Group indirectly invested through FESS-Panama.

Note 6: The Group indirectly invested through FESS-Panama, and the investment was handling capital reduction and returning shares of CNY $9,467 on February 1, 2018, the amount of the share is remitted back to the GRAND SCENE TRADING (HONG KONG).

Note 7: The Group indirectly invested t through Nanjing Ji Cheng on August 30, 2012.

Note 8: The Group indirectly invested through RICHNESS TRADING (SHANGHAI) on March 16, 2015. Shanghai Rich was liqudated on March 24, 2021. Note 9: The amount in the table is translated by the spot rate on the financial reporting date and the average rate throughout the year.

(to be continued)

～ 94 ～

(continued)

1. Limitation on investment in Mainland China:

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Company Name Accumulated Investment in Mainland China as of December 31, 2021 Investment Amounts Authorized by Investment Commission, MOEA Upper Limit on Investment
The Company $ 2,563,153 $ 4,275,669 $ 3,996,063
----- End of picture text -----

Note: The limit on investment was determined by 60% of the individual or consolidated total net worth whichover is higher.

1. Significant transactions with investee companies in Mainland China:

For the Group’s significant direct or indirect transactions (eliminated when compiling the consolidated financial statements) with investee companies in Mainland China for the years ended December 31, 2021, please refer to “Information on significant transactions” above.

～ 95 ～

EASTERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES Major shareholders December 31, 2021 (Experssed in Units) Table 8

STERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES jor shareholders cember 31, 2021 xperssed in Units) ble 8	STERN MEDIA INTERNATIONAL CORPORATION AND SUBSIDIARIES jor shareholders cember 31, 2021 xperssed in Units) ble 8
Shareholding Shareholders name Shares		Percentage
Jinxin Trading Co., Ltd.	50,970,680	9.63%

～ 96 ～