EMIC — Annual Report 2021

Nov 23, 2021

Stock code: 2614

EASTERN MEDIA INTERNATIONAL CORPORATION

Parent Company Only 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. Independent Auditors’ Report 4. Consolidated Balance Sheet 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. 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 XV. List of major account titles	Page 1 2 3～6 7～8 9 10 11～12 13 13 13～14 14～28 28～30 30～55 55～59 59 59～60 60 60 61～62 62, 68～72 62, 73～74 62, 75～76 62, 77 62 63～67	Note
		1 2 3 4 5 6～27 28 29 30 31 32 33 34 34 34 34 34 35

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Independent Auditors’ Report

To the Board of Directors of Eastern Media International Corporation:

Opinion

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

In our opinion, based on our audits and the reports of other auditors (please refer to Other Matter paragraph), the accompanying parent Company only financial statements present fairly, in all material respects, the parent Company only financial position of the Company as of December 31, 2021 and 2020, and its parent Company only financial performance and its parent Company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

We conducted our audit of the parent Company only 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 Financial Statements section of our report. We are independent of the Company 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 parent Company only financial statements of partial companies, associates of the Company, 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 22.04% and 17.81% of total assets at December 31, 2021 and 2020, respectively, and the related share of profit of associates accounted for using the equity method constituting 66.77% and (7.01)% of total profit before tax for the years then ended, respectively.

Key Audit Matters

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

1. Warehousing Revenue recognition

Please refer to Note 4n "Revenue recognition" for accounting policy related to revenue recognition, and Note 21 "Revenue from contracts with customers" to the parent Company only financial statements.

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Description of key audit matter:

Major of the operating revenue sources of the Company are the services of warehousing amounted to $1,369,908 thousand, constituting 100.00% of its Company revenue. 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 of warehousing; 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.

• 2.The investments accounted of using equity method impairment

• Please refer to Note 4m “Impairment of non-financial assets” for accounting policy related to the investments accounted of using equity method impairment, and Note 12 " investments accounted for using equity method " to the parent Company only financial statements.

Description of key audit matter:

The investments accounted of using equity method of the Company constituted 41% of its parent Company only assets. The evaluation of the impairment on December 31 is significant to the parent Company only financial statements. There are risks that the assumption of the financial performance and cash flows related to the Company’ s subsidiaries and 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 Parent Company Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent Company only financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and for such internal control as management determines is necessary to enable the preparation of the parent Company only financial statements that are free from material misstatement, whether due to fraud or error.

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

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

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Auditors’ Responsibilities for the Audit of the parent Company only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent Company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the 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 parent Company only 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 parent Company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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

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

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

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

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

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the parent Company only financial statements of the

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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 parent company only financial statements are intended only to present the parent company only 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 parent company only 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 parent company only financial statements, the Chinese version shall prevail.

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EASTERN MEDIA INTERNATIONAL CORPORATION Balance Sheets

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (Note 6) 1110 Current financial assets at fair value through profit or loss (Note 7) 1170 Accounts receivable, net (Notes 9 and 21) 1200 Other receivables, net (Notes 10) 1210 Other receivables due from related parties, net (Notes 10 and 28) 130X Inventories (Note 11) 1410 Prepayments 1476 Other current financial assets (Notes 29) 1479 Other current assets, others 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 12 and 29) 1600 Property, plant and equipment (Notes 13 and 29) 1755 Right of use assets (Note 14) 1780 Intangible assets 1840 Deferred tax assets (Note 18) 1920 Refundable deposits (Notes 29) 1990 Other non-current assets, others (Note 30) Total assets	December 31, 2021	December 31,2020
	Amount % $ 633,416 6 685,939 6 16,065 - 14,033 - 410,876 4 29,066 - 9,771 - 1,288 - 196 - 1,800,650 16 7,500 - 4,445,308 41 570,737 5 3,496,274 32 1,351 - 431,634 4 117,486 1 60,784 1 9,131,074 84 $ 10,931,724 100	Amount % $ 889,244 8 231,123 2 11,148 - 3,009 - 627,539 6 28,046 - 8,648 - 14,592 - - - 1,813,349 16 7,500 - 4,397,379 40 387,257 4 3,709,212 34 817 - 399,839 4 117,450 1 128,954 1 9,148,408 84 $ 10,961,757 100

(Please see accompanying notes to the parent company only financial statements)

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

(Expressed in Thousands of New Taiwan Dollars)

Liabilities and Equity Current liabilities: 2150 Notes payable 2200 Other payables (Notes 22 and 27) 2220 Other payables due from related parties, net (Notes 28) 2230 Current tax liabilities 2280 Current lease liabilities (Note 16) 2320 Long-term liabilities, current portion (Notes 15) 2399 Other current liabilities, others Non-current liabilities: 2540 Long-term borrowings (Notes 15) 2570 Deferred tax liabilities (Note 18) 2580 Non-current lease liabilities (Note 16) 2640 Non-current net defined benefit liability (Note 17) 2645 Guarantee deposits received 2670 Non-current liabilities, others (Note 12) Total liabilities Equity attributable to owners of parent (Note 19) 3100 Capital stock 3200 Capital surplus 3300 Retained earnings 3400 Other equity interest Total equity Total liabilities and equity	December 31, 2021 Amount % $ 38 - 259,141 2 177,233 2 - - 173,939 2 19,574 - 10,113 - 640,038 6 76,667 1 525 - 3,457,183 31 17,281 - 360 - 495,987 5 4,048,003 37 4,688,041 43 5,289,504 48 16,243 - 1,284,545 12 ( 346,609) ( 3) 6,243,683 57 $10,931,724 100	December 31,2020
		Amount % $ - - 167,000 2 202,172 2 4,745 - 169,657 2 - - 11,000 - 554,574 6 - - 22 - 3,630,042 33 21,525 - 360 - 478,618 4 4,130,567 37 4,685,141 43 5,567,899 51 20,769 - 983,904 9 (295,956) (3) 6,276,616 57 $10,961,757 100
	(

(Please see accompanying notes to the parent company only financial statements)

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EASTERN MEDIA INTERNATIONAL CORPORATION Statements of Comprehensive Income

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

4000 Operating revenue (Note 21) 5000 Operating costs (Note 11, 17 and 28) Gross profit from operations 6000 Operating expenses (Note 17 and 28) Net operating income (loss) Non-operating income and expenses: 7100 Interest income (Note 23 and 28) 7010 Other income (Note 7, 8, 23 and 28) 7020 Other gains and losses, net (Note 12, 14, 23 and 28) 7050 Finance costs, net (Note 16, 23 and 28) 7060 Share of profit of associates and joint ventures accounted for using equity method (Note 12) 7900 Profit before tax 7950 Less: tax income (Note 18) Net profit 8300 Other comprehensive income: 8310 Components of other comprehensive income that will not be reclassified to profit or loss 8311 Gains (losses) on remeasurements of defined benefit plans 8330 Share of other comprehensive income of subsidiaries, associates and joint ventures accounted for using equity method 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 8380 Share of other comprehensive income of subsidiaries, 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 Total components of other comprehensive income that will be reclassified to profit or loss 8300 Other comprehensive income, net of tax Total comprehensive income Earnings per share (Unit: NT$)(Note 20) 9750 Basic earnings per share 9850 Diluted earnings per share (Unit: NT$)			**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 1,369,908 641,701 728,207 337,248 390,959 19,064 38,404 7,061 114,337 ) ( 359,214 700,365 45,128) ( 745,493 806 181) 625 43,961 ) ( 6,659 ) - 50,620) ( 49,995 ) ( 695,498 $ 1.37 $ 1.37			％ 100 47 53 25 28 1 3 1 8) 26	Amount ％ $ 1,338,004 100 609,271 46 728,733 54 300,024 22 428,709 32 28,690 2 10,727 1 41,915 3 ( 118,171 ) ( 9) ( 71,018) ( 5) 320,852 24 ( 200,007) ( 15) 520,859 39 997 - 18,570 1 19,567 1 ( 59,795 ) ( 4) ( 8,365 ) ( 1) - - ( 68,160) ( 5) ( 48,593) ( 4) $ 472,266 35 $ 0.94 $ 0.94
		(			(
		(			(	51 3) 54 - - - 3) - - 3) 3) 51
		( ( (
					(
		( ( $			( (
				$ 1.37

(Please see accompanying notes to the parent company only financial statements)

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

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	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
				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 )	$ 6,361,140 520,859 ( 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

(Please see accompanying notes to the parent company only financial statements)

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EASTERN MEDIA INTERNATIONAL CORPORATION

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) loss of subsidiaries associates and joint ventures accounted for using equity method Gain on disposal of property, plant and equipment Loss on disposal of investments Gain from lease modification Total adjustments to reconcile profit Changes in operating assets and liabilities: Changes in operating assets, net: (Increase) decrease in current financial assets at fair value through profit or loss (Increase) decrease in accounts receivable Decrease in other receivable Increase in inventories (Increase) decrease in prepayments Decrease in other current assets Total changes in operating assets, net Changes in operating liabilities, net: Increase (decrease) in notes payable Increase in other payable Decrease in receipts in advance 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	2020
	$ 700,365 258,906 609 ( 10,516) 114,337 ( 19,064) ( 21,879) ( 359,214) ( 193) 4,327 ( 5) ( 32,692) ( 444,300) ( 4,917) 290 ( 3,268) ( 1,122) 13,108 ( 440,209) 38 86,665 - ( 887) ( 3,438) 82,378 ( 357,831) ( 390,523) 309,842 ( 1,851) 307,991	$ 320,852 242,734 419 ( 49,151) 118,171 ( 28,690) ( 1,874) 71,018 ( 53) 3,806 - 356,380 60,567 2,564 6,364 ( 1,976) 10,977 15,461 93,957 ( 616) 8,380 ( 1) ( 505) ( 4,827) 2,431 96,388 452,768 773,620 ( 9,166) 764,454

(Please see accompanying notes to the parent company only financial statements)

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EASTERN MEDIA INTERNATIONAL CORPORATION Statements of Cash Flows (Cotn’d)

(Expressed in Thousands of New Taiwan Dollars)

		For the years ended	For the years ended	December 31
		2021		2020
Cash flows from (used in) investing activities:
Acquisition of investments accounted for using equity method	($	120,800)	($	495,000)
Proceeds from capital reduction of investments accounted for using equity
method		-		11,230
Proceeds from disposal of investments accounted for using equity method		35,294		24,473
Acquisition of property, plant and equipment	(	109,713)		127,332
Proceeds from disposal of property, plant and equipment		193		53
Increase in refundable deposits	(	36)	(	67)
Decrease in other receivables due from related parties		216,500		368,000
Acquisition of intangible assets	(	995)	(	698)
Decrease in other financial assets		-		59,666
Increase in other non-current assets	(	43,644)	(	100,896)
Interest received		18,854		28,823
Dividends received		376,307		158,155
Net cash flows from (used in) investing activities		371,960	(	73,593)
Cash flows from (used in) financing activities:
Increase in long-term debt		96,667		-
Decrease in other payables due from related parties	(	24,693)		201,708
Payment of lease liabilities	(	169,947)	(	164,736)
Decrease in guarantee deposits received		-		360
Capital reduction	(	278,395)		-
Issuance cash dividends	(	445,432)	(	556,790)
Interest paid	(	113,979)	(	118,132)
Net cash flows used in financing activities	(	935,779)	(	637,590)
Net (decrease) increase in cash and cash equivalents	(	255,828)		53,271
Cash and cash equivalents at beginning of period		889,244		835,973
Cash and cash equivalents at end of period	$	633,416	$	889,244

(Please see accompanying notes to the parent company only financial statements)

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

EASTERN MEDIA INTERNATIONAL CORPORATION

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 Company 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 include forwarding, loading and unloading cargo onto/from ships, the handling and operation of wharf and transit shed facilities.

2. Approval date and procedures of the financial statements

The 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 Company has initially adopted the following new amendments, which do not have a significant impact on its parent company only financial statements, from January 1, 2021:

• 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”

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

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

The Company 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

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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 Company 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 Company completes its evaluation.

The Company 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

The parent company only financial statements are prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

• b. Basis of preparation

• (a) Basis of measurement

Except for the following significant accounts, the parent company only 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 4o,

• (b) Functional and presentation currency

The functional currency of each Company 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. Foreign currencies

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(a) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Company 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. Nonmonetary 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 Company 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 Company 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.

• d. 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 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.

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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 Company 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.

• e. 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.

• f. 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 Company 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 Company 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 ：

• 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

～ 16 ～

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 Company 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 Company’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 Company 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.

(a-4) Business model assessment

The Company 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

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the sale of the assets;

• how the performance of the portfolio is evaluated and reported to the Company’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 Company’ 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 Company 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 Company 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 Company s claim to cash flows from specified assets (e.g. non recourse features).

(a-6) Impairment of financial assets

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

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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 Company 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 Company’ s historical experience and informed credit assessment as well as forward-looking information.

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

The Company 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 Company 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 Company 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 Company in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

At each reporting date, the Company 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 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

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loss allowance is recognized in other comprehensive income instead of reducing the carrying amount of the asset. The Company 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 Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. The Company 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 Company 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 Company’ s procedures for recovery of amounts due.

(a-7) Derecognition of financial assets

The Company 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 Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

The Company 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 recognized in profit or loss.

(b-2) Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligations are discharged or cancelled, or expire. The Company 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

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in the statement of balance sheet when, and only when, the Company 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.

g. 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.

h. Investment in associates

Associates are those entities in which the Company 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 the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition less any accumulated impairment losses.

The parent company only financial statements include the Company’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 Company, from the date on which significant influence commences until the date on which significant influence ceases. The Company 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 Company and an associate are recognized only to the extent of unrelated Company’s interests in the associate.

When the Company’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 Company has incurred legal or constructive obligations or made payments on behalf of the associate.

The Company 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 Company 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 Company 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 Company 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 Company’s proportionate interest in the net assets of the associate. The Company records such a difference as an adjustment to investments, with the corresponding amount charged or credited to capital surplus. The

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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 Company’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

• i. Subsidiaries

The subsidiaries in which the Company holds controlling interest are accounted for under equity method in the parent company only financial statements. Under equity method, the net income, other comprehensive income and equity in the parent company only financial statement are the same as those attributable to the owners of parent in the consolidated financial statements.

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

• j. 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.

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 Company.

• (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 5 20 years ～ Leasehold improvements 2 20 years ～ Miscellaneous equipment 2 20 years

Depreciation methods, useful lives and residual values are reviewed at each reporting

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date and adjusted if appropriate.

k. Leases

At inception of a contract, the Company 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 Company 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 Company’ s incremental borrowing rate. Generally, the Company 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;

• － 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 Company’ 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

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lease for lease modifications that decrease the scope of the lease, the Company 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 Company 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 Company 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 Company 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 Company 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.

• (b) As a leasor

When the Company 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 Company 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 Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Company 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 shortterm lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

• l. 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 Company and have finite useful lives are measured at cost less accumulated amortization and any accumulated impairment losses.

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• (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:

～ Computer software 3 4 years

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

• m. Impairment of non-financial assets

At each reporting date, the Company 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 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.

• n. Revenue recognition

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer.

The Company 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.

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

• o. 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 Company’ 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 Company, 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 Company 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 Company 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 Company 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.

• p. 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

～ 26 ～

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 Company 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 Company 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.

• q. Business combination

The Company 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 non controlling 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 Company recognized that amount as a gain on a bargain purchase in profit or loss immediately after reassessing 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 Company 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 acquire’s net assets in the

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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.

• r. Earnings per share

The Company 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.

• s. Operating segments

Please refer to the consolidated financial report of Eastern Media International Corporation for the years ended December 31, 2021 and 2020 for operating segments information.

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

The preparation of the financial statements in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers 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 financial statements is as follows:

• a. Refer to the consolidated financial statement for the years ended December 31, 2021 and 2020 for judgment regarding control of subsidiaries.

• b. Lease term

The Company 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 Company considers all relevant facts and circumstances that create an economic incentive for the lessee. The Company 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 Company recognizes the amount of the remeasurement of the lease liability as an adjustment to the right-of-use asset. Please refer to Note 14 and 16.

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. Measurement of defined benefit obligations

～ 28 ～

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 17 for further description of the actuarial assumptions and sensitivity analysis.

b. 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 $431,634 and $399,839, respectively. As of December 31, 2021 and 2020, no deferred tax assets have been recognized on tax losses of $753,621 and $1,123,969, 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.

• c. Impairment of goodwill from investments in subsidiaries

Determining whether the goodwill included in the investments in subsidiaries is impaired requires an estimation of the value in use of the cash generating units which are expected to benefit from the synergies of the related combination and to which the goodwill has been allocated since the acquisition date. The calculation of the value in use requires management to estimate the future cash flows expected to arise from the cash generating units and a suitable discount rate in order to calculate the present value. Where the actual future cash flows are less than expected, a material impairment loss may arise.

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

The Company 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).

• 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:

Note 24, Financial instruments.

6. Cash and cash equivalents

ash and cash equivalents
Cash on hand Cash in banks Cash equivalents		December 31, 2021 $ 1,491 171,807 460,118 $ 633,416		December 31, 2020
				1,725 527,481 360,038 889,244

Please refer to Note 24 for the fair value sensitivity analysis and interest rate risk of the financial assets and liabilities.

～ 29 ～

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	December 31, 2021	December 31, 2020	December 31, 2020
	$ 685,939		$ 231,123

• a. Please refer to Note 23 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 $20,367 and $1,287, respectively.

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

8.

Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income	Financial assets at fair value through other comprehensive income
	December		31,	December		31,
		2021			2020
Equity investments at fair value through
other comprehensive income:
Unlisted common shares domestic
Company	$		7,500	$		7,500

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

The Company 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 Company intends to hold for long-term for strategic purposes. For the years ended December 31, 2021 and 2020, the Company recognized the dividends of $1,512 and $587 related to equity instruments measured at fair value through other comprehensive income, respectively.

• b. For credit risk and market risk; please refer to Note 24 and 25.

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

9. Notes and accounts receivable (including related parties)

Accounts receivable	December 31, 2021 $ 16,065	December 31, 2020
		$ 11,148

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

～ 30 ～

Gross carrying Weighted average Loss allowance amount loss rate provision Current $ 11,148 - % $ -

• a. As of December 31, 2021 and 2020, there was no allowance for notes and accounts receivable.

• b. Please refer to Note 24 and 25 for the Company’s accounts receivable exposure to credit risk and currency risk.

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

Other accounts receivable—loans to associates Other accounts receivable—others	December 31, 2021 $ 400,000 24,909 $ 424,909		December 31, 2020
			$ 616,500 14,048 $ 630,548

• a. As of December 31, 2021 and 2020, there were no bills past due but not impared of other receivables.

• b. For credit risk and market risk; please refer to Note 24 and 25.

11.

Inventories

ventories
Raw materials and others (including fuel)		December 31, 2021 $ 29,066		December 31, 2020
			$	28,046

• a. As of December 31, 2021 and 2020, raw material and others, recognized as cost of sales amounted $8,443 and $7,365, respectively.

b. No inventories were pledged as collateral on December 31, 2021 and 2020, respectively. 12. Investments accounted for using equity method

The Company’ s financial information for investments accounted for using the equity method at the reporting date was as follows:

Subsidiaries Associates Eastern Home Shopping&Leisure Co., Ltd. Add: credit balance of investments accounted for using equity method transferred to non-current liabilities	December 31, 2021 $ 3,822,428 126,893 3,949,321 495,987 $ 4,445,308	December 31, 2020
		$ 3,795,089 123,672 3,918,761 478,618 $ 4,397,379

a. Subsidiaries

Expect for the following mentioned, please refer to the consolidated financial statement for the years ended December 31, 2021 and 2020.

• (a) On December 31, 2021 and 2020, wherein the Company invested at an amount proportionate to subsidiaries' previous shareholding, credit balance of investments accounted for using equity method carrying amounts of $495,987 and $478,618, respectively, the credit balance of investments accounted for using equity method has been transferred to non current liabilities.

• (b) 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

～ 31 ～

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.

• (c) On December 16, 2020, a resolution was passed in the Far Eastern Silo & Shipping International (Bermuda) Ltd. board meeting for the capital reduction with the amount of USD$400 (approximately NTD$11,230), and the transaction was approved by the Investment Commission, MOEA on January 27, 2021.

• (d) The Company resolved on May 6, 2021 to dispose the entire interests in the subsidiary, Mohsit Web Technology Co., Ltd.. Ther share transfer resgistriation procedures were finished on May 28, 2021.

• (e) On November 4, 2021, the Company’ s Board of Directors resolved to invest $120,800 in subsidiary, EHR Hotels & Resorts Group Yilan in proportion to the shareholding ratio.

～ 32 ～

• b. Associates

• (a) Affiliates which are material to the Company consisted of the following:

Affiliate Name	Within the Company Nature of Relationship	Main operating location	Proportion of shareholding and voting rights
			December 31, 2021 December 31, 2020
EHS	Wholesale and retail of various commodities, materials and equipment	Taiwan, Hong Kong and China	6.51% 6.51%

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:

Current assets Non-current assets Liabilities Net assets Non-controlling interests, attributable to investee Net assets attributable to investee 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 Company on January 1 Comprehensive income attributable to the Company Dividends received from associates ( Share of net assets attributable to the Company on December 31	December 31, 2021 December 31, 2020 $ 4,572,514 $ 5,459,802 7,635,401 6,614,712 ( 9,944,589) ( 9,882,194) $ 2,263,326 $ 2,192,320 $ 314,919 $ 293,369 $ 1,948,407 $ 1,898,951 For the Years Ended December 31 2021 2020 $ 27,200,172 $ 23,709,345 $ 1,843,015 $ 1,454,098 34,712) ( 46,847 ) $ 1,808,303 $ 1,407,251 $ 26,269 $ 5,356 $ 1,782,034 $ 1,401,895 $ 123,672 $ 99,211 116,059 91,301 112,838) ( 66,840 ) $ 126,893 $ 123,672		December 31, 2020
	2021 $ 27,200,172 $ 1,843,015 34,712) $ 1,808,303 $ 26,269 $ 1,782,034 $ 123,672 116,059 112,838) $ 126,893

～ 33 ～

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

Carrying amount of individually insignificant associates’equity Attributable to the Company: Profit from continuing operations Other comprehensive loss Total comprehensive loss	December 31, 2020 $ - For the Year Ended December 31	December 31, 2020 $ - For the Year Ended December 31
		2020
	( (	$ 182 1,790) $ 1,608)

• d. The liquidation of the Company’ 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 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.

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

• f. The Company has processed an impairment test for investment using the equity method, please refer to Note 13 of the consolidated financial statements for the year ended December 31, 2021 and 2020.

• g. Please refer to Note 29 for the details of the investments accounted for using equity method pledged as collateral.

～ 34 ～

13. Property, plant and equipment

The cost, depreciation, and impairment loss of the property, plant and equipment of the Company were as follows:

Land Cost or deemed cost: Balance on January 1, 2021 $ 151,147 Additions - Transfers - Disposals - ( Balance on December 31, 2021 $ 151,147 Balance on January 1, 2020 $ 63,196 Additions 87,951 Disposals - Balance on December 31, 2020 $ 151,147 Depreciation and impairment loss: Balance on January 1, 2021 $ - Depreciation - Disposals - ( Balance on December 31, 2021 $ - Balance on January 1, 2020 $ - Depreciation - Disposals - Balance on December 31, 2020 $ - Carrying amounts: December 31, 2021 $ 151,147 January 1, 2020 $ 63,196 December 31, 2020 $ 151,147		Land	Buildings	Machinery and equipment	Transportation equipment i	Leasehold mprovements	Other equipment	**Total **
			$ 61,016 678 - 896) ( $ 60,798 $ 51,544 9,472 - $ 61,016 $ 25,561 1,647 896) ( $ 26,312 $ 23,912 1,649 - $ 25,561 $ 34,486 $ 27,632 $ 35,455	$ 3,674 - - 3,674) ( $ - $ 3,674 - - $ 3,674 $ 3,674 - 3,674) ( $ - $ 3,674 - - $ 3,674 $ - $ - $ -	$ 25,755 - - 16,783) ( $ 8,972 $ 25,010 1,055 ( 310) ( $ 25,755 $ 22,343 1,795 16,783) ( $ 7,355 $ 20,977 1,676 ( 310) $ 22,343 $ 1,617 $ 4,033 $ 3,412	$ 224,490 99,342 114,061 14,698) ( $ 423,195 $ 203,076 27,687 6,273) ( $ 224,490 $ 36,514 37,651 14,698) ( $ 59,467 $ 19,924 22,863 ( 6,273) ( $ 36,514 $ 363,728 $ 183,152 $ 187,976	$ 36,312 13,992 - 22,766) ( $ 27,538 $ 32,631 4,402 721) $ 36,312 $ 27,045 3,500 22,766) ( $ 7,779 $ 25,249 2,517 721) ( $ 27,045 $ 19,759 $ 7,382 $ 9,267	$ 502,394 114,012 114,061 58,817) $ 671,650 $ 379,131 130,567 ( 7,304) $ 502,394 $ 115,137 44,593 58,817) $ 100,913 $ 93,736 28,705 7,304) $ 115,137 $ 570,737 $ 285,395 $ 387,257

Please refer to Note 29 for the details of the property, plant and equipment pledged as collateral.

14. Right-of-use assets

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

Land and equipment Right of use asset costs: Balance on January 1, 2021 $ 4,105,077 Additions - Write off - lease modification - Balance on December 31, 2021 $ 4,105,077 Balance on January 1, 2020 $ 4,107,295 Write off - lease modification ( 2,218) Balance on December 31, 2020 $ 4,105,077 Accumulated depreciation and impairment losses: Balance on January 1, 2021 $ 424,593 Depreciation 204,471 Write off - lease modification - Balance on December 31, 2021 $ 629,064 Balance on January 1, 2020 $ 220,103 Depreciation 204,490 Balance on December 31, 2020 $ 424,593 Carrying amounts: December 31, 2021 $ 3,476,013 January 1, 2020 $ 3,887,192 December 31, 2020 $ 3,680,484	Buildings $ 44,685 - ( 432) $ 44,253 $ 44,685 - $ 44,685 $ 15,957 9,515 ( 336) $ 25,136 $ 6,418 9,539 $ 15,957 $ 19,117 $ 38,267 $ 28,728	Transportation equipment $ - 1,471 - $ 1,471 $ - - $ - $ - 327 - $ 327 $ - - $ - $ 1,144 $ - $ -		Total
				$ 4,149,762 1,471 ( 432) $ 4,150,801 $ 4,151,980 ( 2,218) $ 4,149,762 $ 440,550 214,313 ( 336) $ 654,527 $ 226,521 214,029 $ 440,550 $ 3,496,274 $ 3,925,459 $ 3,709,212

～ 35 ～

• a. In February 2020, due to modifications of warehousing lease contract, some lease contracts were terminated by the Company, and the right of use assets and the lease liabilities amounted to $2,218 and $2,218 were wrote off.

• b. In October 2021, some lease contracts were not renerved in consideration of its operating conditions by the Company, and the right of use assets of $96 and lease liabilities of $101 were wrote off. The Company recognized $5 in lease modification benefits.

10. Long-term loans

Details, conditions, and terms of long-term loan of the Company were as follows:

Secured bank loans Less: Current portion Fees Total Duration year Interest rates Unused credit lines	December 31, 2021 $ 96,667 ( 19,574 ) ( 426 ) $ 76,667 111~115 1.90% $ -	December 31, 2020
		$ - - - $ - - - $ -

Please refer to Note 29 for the details of the related assets pledged as collateral.

11. Lease liabilities

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

Current Non-current	December 31, 2021 $ 173,939 $ 3,457,183	December 31, 2020
		$ 169,657 $ 3,630,042

For the maturity analysis, please refer to Note 24.

For the years ended December 31, 2021 and 2020, newly added lease liabilities amounted to $1,471 and $0 respectively, and the interest rates was 3%. Lease period ending dates extend from April 2022 to December 2038. However, for the years ended December 31, 2021 and 2020, the Compangy negotiated modifications to its contracts in consideration of its operating conditions, thereby reducing lease liabilities by $101 and $2,218 respectively. The information on modifications of the Company’ s lease contracts, please refer to Note 14 and 23.

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 $ 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 111,671 $ 116,666 31,681 $ 29,995 1,297 $ 1,892 595 $ 214 Cash Flows were as follows: For the Years Ended December 31 2021 2020 $ 315,191 $ 313,503		2020
		$
		$
		$
		$
				2021 $ 315,191

a. Leases of land and equipment, and buildings

～ 36 ～

As of December 31, 2021, the Company leased land and buildings for its warehousing operations and office space. The leases of office space typically run for a period of 20 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 Company 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 Company 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.

b. Other leases

The Company leases transportation equipment with lease terms of three years. In some cases, the Company has options to extend lease terms at the end of the contract term.

The Company 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 Company has elected not to recognize right of use assets and lease liabilities for these leases.

17. Employee benefits

a. Defined benefit plans

The Company determined the movement in the present value of the defined benefit 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 $ 139,545 122,264) $ 17,281	December 31, 2020
		$ 143,876 ( 122,351) $ 21,525

The Company makes defined benefit plans contributions to the pension fund account with Bank of Taiwan that provide pension benefits for employees upon retirement. Plans (covered by the Labor Standard Law) entitle a retired employee to receive retirement benefits based on years of service and average monthly salary for six months prior to retirement.

• (a) Composition of plan assets

The Company 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 Company’ s Bank of Taiwan labor pension reserve account balance amounted to $122,264 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.

～ 37 ～

(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: －Actuarial losses 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 $ 143,876 1,720 1,173 ( 7,224) $ 139,545		2020
				$ 143,510 2,349 2,986 ( 4,969) $ 143,876

(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: －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 $ 122,351 233 1,979 4,925 ( 7,224) $ 122,264		2020
				$ 116,161 720 3,983 6,456 ( 4,969) $ 122,351

(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 $ 1,446 274 ( 233) $ 1,487 $ 1,011 476 $ 1,487		2020
				$ 1,460 889 ( 720) $ 1,629 $ 1,086 543 $ 1,629

(e) Actuarial valuations

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

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

～ 38 ～

The expected allocation payment to be made by the Company to the defined benefit plans for the one-year period after the reporting date is $2,923.

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

• (f) Sensitivity analysis

When calculating the present value of the defined benefit obligations, the Company 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.

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 ($ 1,592) 6,897 ($ 1,670) 4,512	Decrease
		6,960 ( 1,594) 4,574 ( 1,349)

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 Company 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 Company 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 Company contributed $10,440 and $10,339, respectively, under the pension plan to the Bureau of Labor Insurance.

18. 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 Adjustment for prior periods Deferred tax expense Origination and reversal of temporary differences Income tax benefit	For the Years Ended December 31
	2021 ( $ 9,091 ) ( 4,745) ($ 13,836) ( 31,292 ) ($ 45,128 )		2020
		( ( ( (	$ - 109) $ 109) 199,898) $ 200,007 )

～ 39 ～

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

For the Years Ended December 31 2021 2020 Profit before tax $ 700,365 $ 320,852 Income tax on pre tax financial income calculated at the domestic rates applicable to profits in the country concerned 140,073 64,170 Investment gain or loss from domestic investment accounted for using equity method ( 71,843 ) 14,204 Prior years’ adjustment ( 4,745 ) ( 109 ) Other adjustments in accordance with tax laws ( 77,321 ) ( 78,374 ) Deferred income taxes ( 31,292) ( 199,898) Total ($ 45,128 ) ($ 200,007 ) 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 $ 2,161 $ 2,849 The carryforward of unused tax losses 753,621 1,123,969 $ 755,782 $ 1,126,818		For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
				2020
				$ 320,852 64,170 14,204 ( 109 ) ( 78,374 ) ( 199,898) ($ 200,007 ) following items: December 31, 2020
				$ 2,849 1,123,969 $ 1,126,818

b. Deferred tax assets and liabilities

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 Company can utilize the benefits therefrom.

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

Year of Occurrence 2012 2013 2014 2015	Remaining Creditable Amount $ 1,357,284 897,577 867,481 645,765 $ 3,768,107	Year of Expiration
		2022 2023 2024 2025

(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 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 $ 399,839 31,795 $ 431,634		2020
				$ 199,919 199,920 $ 399,839

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

～ 40 ～

future.

uture.
Deferred Tax Liabilities: Balance, January 1 Recognized in profit or loss Balance, December 31		For the Years Ended December 31
		2021 $ 22 503 $ 525		2021
				$ - 22 $ 22

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

19.

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 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

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

Legal reserve Special reserve Cash dividends	Amount 2020 2019 $ 54,042 $ 37,423 68,155 44,579 445,432 556,790	Dividend per share (NT$)	Dividend per share (NT$)
	2020 $ 54,042 68,155 445,432	2020 $ - - 0.8	2019
			$ - - 1.0

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On March 23, 2022, the Company’ s Board of Directors resolved to appropriate the 2021 earnings, as follows:

2021 earnings, as follows:
Legal reserve Special reserve Cash dividends	Earnings distributions	Dividend per share
	$ 74,607 - 50,654 - 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 Company disposed its subsidiary—Mohist Web Technology Co., Ltd. on May 28, 2021, the unrealized losses on financial assets measured at fair value through other comprehensive income relating to Mohist Web Technology Co., Ltd. amounted to $55 were also reclassified to retained earnings.

• (f) In 2021, the Company’s subsidiary 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 in the consolidated financial statement for the years ended December 31, 2021 and 2020.

• d. Other equity (net of tax)

Balance on January 1, 2021 Exchange differences on foreign operation Change in other comprehensive income (loss) of associates accounted for using equity method Loss of control of the subsidiary Balance on December 31, 2021 Balance on January 1, 2020 Exchange differences on foreign operation Change in other comprehensive income (loss) of associates accounted for using equity method Disposal of investments in equity instruments designated at fair value through other comprehensive income Balance on December 31, 2020	Foreign currency translation differences for foreign operations ($ 292,290) ( 43,961) ( 6,659) - ($ 342,910) ($ 224,130) ( 59,795) ( 8,365) - ($ 292,290)	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Total ($ 3,666) ($ 295,956) - ( 43,961) 22 ( 6,337) ( 55) ( 55) ($ 3,699) ($ 346,609) ($ 3,671) ($ 227,801) - ( 59,795) 19,497 11,132 ( 19,492) ( 19,492) ($ 3,666) ($ 295,956)

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20.

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 21. Revenue from contracts with customers a. Details of revenue For the years ended December 31 2021 2020 Main services: Loading and storage revenue $ 1,369,908 1,338,004 b. Contract balances December 31, 2021 December 31, 2020 January 1, 2020 Accounts receivable $ 16,065 $ 11,148 $ 13,712 Less: Allowance for doubtful accounts - - - Total $ 16,065 $ 11,148 $ 13,712	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 21. Revenue from contracts with customers a. Details of revenue For the years ended December 31 2021 2020 Main services: Loading and storage revenue $ 1,369,908 1,338,004 b. Contract balances December 31, 2021 December 31, 2020 January 1, 2020 Accounts receivable $ 16,065 $ 11,148 $ 13,712 Less: Allowance for doubtful accounts - - - Total $ 16,065 $ 11,148 $ 13,712
				2021
	$
								$ 13,712 - $ 13,712

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

22. 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

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calculated based on the net profit before tax, excluding the remuneration to employees, 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.

The amounts of employees’ and directors’ remuneration, as stated in the parent company only 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.

23. Non-operating income and expenses

• a. Interest income

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

For the Years Ended December 31 2021 2020 Interest income from bank deposits $ 999 $ 1,472 Interest income from financial assets measured at amortized cost 183 276 Other interest income 17,882 26,942 $ 19,064 $ 28,690 ther income he details of other revenue of the Company were as follows: For the Years Ended December 31 2021 2020 Dividend income $ 21,879 $ 1,874 Rental income 3,135 1,323 Other income 13,390 7,530 $ 38,404 $ 10,727		For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
				2020
		2021 $ 21,879 3,135 13,390 $ 38,404		2020
				$ 1,874 1,323 7,530 $ 10,727

b. Other income

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

c. Other gains and losses

The details of other gains and losses were as follows:

Gain on disposal of property, plant, and equipment Loss on disposal of investments assets Net gains on evaluation of financial assets at fair value through profit or loss Foreign exchange gain (loss) Lease modification benefits Other losses		For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
		2021 $ 193 ( 4,327) 10,516 750 5 ( 76) $ 7,061		2020
				$ 53 ( 3,806) 49,151 ( 3,406) - ( 77) $ 41,915

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d. Finance costs

The Company’ 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 $ 111,671 2,378 288 $ 114,337		2020
				$ 116,666 1,389 116 $ 118,171

24. Financial instruments

a. Credit risk

• (a) Credit risk exposure

As of December 31, 2021 and 2020, the maxinum credit exposure for the Company 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 Company providing financial guarantees to its customers was $1,612,251 and $1,120,682.

• (b) Concentration of credit risk

For the years ended December 31, 2021 and 2020, the Company’s revenue come from sales to a single customer were 10.57% and 11.47%, respectively.

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

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 4f.

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

Other receivables Balance on January 1 Amounts written off Balance on December 31		For the Years Ended	For the Years Ended	December 31 2020
				$ 27,285 ( 27,285) $ -

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b. Liquidity risk

The following are the contractual maturities of financial liabilities of the Company, including estimated interest payments and excluding the impact of netting agreements.

December 31, 2021 Non derivative financial liabilities Payables (including related parites) Lease liabilities (current and non-current) Long-term loans Guarantee deposits received December 31, 2020 Non-derivative financial liabilities Payables (including related parites) Lease liabilities (current and non-current) Guarantee deposits received		Carrying amount $ 436,412 3,631,122 96,241 360 $ 4,164,135 $ 369,172 3,799,699 360 $ 4,169,231	Contractual cash flows $ 436,412 4,635,098 101,181 360 $ 5,173,051 $ 369,172 4,915,283 360 $ 5,284,815	Within 1 year $ 436,412 280,465 21,662 360 $ 738,899 $ 369,172 281,303 360 $ 650,835	1-3 years $ - 554,532 42,185 - $ 596,717 $ - 559,359 - $ 559,359	3-5 years $ - 542,367 37,334 - $ 579,701 $ - 545,606 - $ 545,606	More than 5 years $ - 3,257,734 - -
							$ 3,257,734
							$ - 3,529,015 -
							$ 3,529,015

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

	Financial assets Moneytary items USD:TWD EUR:TWD Non-moneytary items USD:TWD HKD:TWD Financial liabilities Moneytary items USD:TWD	December 31, 2021	December 31, 2020
		Foreign Currency Exchange Rate TWD	Foreign Currency Exchange Rate TWD
		$ 23 27.68 $ 642 234 31.32 7,333 72,523 27.68 2,007,438 15,832 3.55 56,187 $ 6,395 27.68 $ 177,015	$ 60 28.48 $ 1,709 2,885 35.02 101,033 69,737 28.48 1,986,095 16,795 3.67 61,686 $ 7,071 28.48 $ 201,392

(b) Sensitivity analysis

The Company’ 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

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factors remaining constant on the reporting date), net profit before tax would have respectively increased or decreased by $1,690 and $987 for the years ended December 31, 2021 and 2020, respectively. The analysis is performed on the same basis for both periods.

As the Company 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 $750 and ($3,406), respectively.

d. Interest rate analysis

The interest risk exposure of the Company’ 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 Company’ 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 Company’ s net profit after tax would have respectively increased or decreased by $615 and $0 for the the years ended December 31, 2021 and 2020.

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 $ 20,578 ($ 225) ($ 20,578)	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 $ 225 ($ 225) (	Net income
			$ 6,934 $ 6,934)

• f. Fair value of financial instruments

• (a) Fair value hierarchy

The carrying amount and fair value of the Company’ 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:

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	December 31, 2021 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 $ 685,939 Financial assets at fair value through other comprehensive income 7,500 Financial assets measured at amortised cost Cash and cash equivalents 633,416 Accounts receivable 16,065 Other receivables (including related parties) 424,909 Other current financial assets 1,288 Refundable deposits 117,486 Financial liabilities measured at amortised cost Notes payable 38 Other payables (including related parties) 436,374 Long-term borrowings (including current portion of long-term borrowings) 96,241 Lease liabilities (current and non- current) 3,631,122 Guarantee deposits received 360 December 31, 2020 Book Value	$ 685,939 $ - $ - $ 685,939 - - 7,500 7,500 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 $ 231,123 Financial assets at fair value through other comprehensive income 7,500 Financial assets measured at amortised cost Cash and cash equivalents 889,244 Accounts receivable 11,148 Other receivables (including related parties) 630,548 Other current financial assets 14,592 Refundable deposits 117,450 Financial liabilities measured at amortised cost Other payables (including related parties) 369,172 Lease liabilities (current and non- current) 3,799,699 Guarantee deposits received 360	$ 231,123 $ - $ - $ 231,123 - - 7,500 7,500

(b) Valuation techniques for financial instruments not measured at fair value The Company’ 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

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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 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 Company’ 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

• There was no change in fair value through other comprehensive income recognized for the years ended December 31, 2021 and 2020.

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

The Company’ 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 Company’ 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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25. Financial risk management

a. Overview

The Company 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 Company’ s information concerning risk exposure and the Company’ 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 Company’ s risk management policies. Management reports regularly to the Board of Directors on its activities.

The Company’ s risk management policies are established to identify and analyze the risks faced by the Company, 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 Company’ s activities. The Company, 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 Company if a customer or counterparty of a financial instrument fails to meet its contractual obligations, which arises principally from the Company’ s receivables from customers and financial instruments.

• (a) Accounts receivable and other receivables

The exposure of the credit risk depends on each customer of the sales of loading storage and lease. The Company assesses the customers' credit risk based on their basic information, which comprises of the default risk in their industry and country. The Company continuously monitors the exposure to credit risk and counterparty credit ratings, the Company does not require any collateral for trade and other receivables.

The Risk Management Committee has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’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 with requiring approval from the Risk Management Committee; these limits are reviewed periodically. The Company would not trade with clients who cannot meet the basic credit rating requirement through regular review.

The Company monitored customer credit risk, customers are grouped according to their credit characteristics. Trade and other receivables relate mainly to the Company’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.

The Company has set up an allowance for impairment to reflect the estimate of

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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 Company 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 Company 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 Company’s policy is to provide financial guarantees only to subsidiaries. At December 31, 2021, no other guarantees were outstanding.

• d. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’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 Company’s reputation.

As of December 31, 2021 and 2020, the Company had unused bank credit lines for short term borrowings amounting to $1,836,016 and $958,491, respectively. According to the Company’s evaluation, the working funds of the Company 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. The Company intends to strenghten the activation and utilization plan of real estate and investment, which is expected to be sufficient to cope with 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 Company’ 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 Company is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other than the respective functional currencies of the Company’s entities, primarily the New Taiwan Dollar (TWD). The currencies used in these transactions are the TWD, EUR, and USD.

In respect of other monetary assets and liabilities denominated in foreign currencies, the Company 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 Company’s interest rate risk is managed by maintaining an appropriate combination of fixed and floating interest rates. The Company periodically evaluates the hedging activities and makes the interest rate and risk preference consistent, so

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that the hedging strategies are most cost effective.

(c) Other market price risk

• The Company 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 Company does not actively trade in these investments since the management of the Company monitors and manages the equity investments by holding different investment portfolios. The Company’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.

26. Capital management

The Company’s objectives for managing capital to safeguard the capacity to continue to operate, to continue to provide a return on shareholders, to maintain the interest of other 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 Company may adjust the dividend payment to the shareholders, reduce the capital for redistribution to shareholders, issue new shares, or sell assets to settle any liabilities.

The Company and other entities in the same industry use 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, and other equity plus net debt.

As at December 31, 2021, the Company’s capital management strategy is consistent with the prior year as at December 31, 2020, ensure financing at a reasonable cost. The Company’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 $ 4,685,141 ( 889,244 ) 3,795,897 6,276,616 $ 10,072,513 37.69%	December 31, 2020
	$ 4,688,041 ( 633,416 ) 4,054,625 6,243,683 $ 10,298,308 39.37%

27. Investing and financing activities not affecting current cash flow

The Company’ 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: Other payable January 1 Less: Other payables December 31 Cash paid in this period Acquisition of intangible assets Less: Other payables December 31 Cash paid in this period		For theyears ended December 31	For theyears ended December 31	For theyears ended December 31
		2021 $ 114,012 15,572 19,871) $ 109,713 $ 1,143 148) $ 995		2020
	( (		(	$ 130,567 12,337 15,572) $ 127,332 $ 698 - $ 698

The Company’s financing activities which did not affect the current cash flow for the years

～ 54 ～

ended December 31, 2021, were as follows:

Long-term borrowings		January 1, 2021 $ -	Cash flows $ 96,667	Non cash changes	Non cash changes	December 31, 2021	December 31, 2021
				Amortization of financing use commitment fees
					($ 426)		$ 96,241

28. 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

Far Eastern Silo & Shipping (Panama) S.A (FESS-Panama)

Far Eastern Silo & Shipping International (Bermuda) Ltd. (FESS-Bermuda)

Grand Scene Media Corporation (GSMC-Cayman)

Eastern Media Communication (Hong Kong) Ltd. (Eastern Media Communication Hong Kong)

RICHNESS TRADING (SHANGHAI) CO., LTD. (RICHNESS TRADING (SHANGHAI))

Shanghai Rich Industry Ltd. (Shanghai Rich)

GRAND SCENE TRADING (HOND KONG) LIMITED (GRAND SCENE TRADING (HONG KONG))

Eastern Biotechnology (Shanghai) (Eastern Food (Shanghai)) Ltd. (Eastern Biotechnology (Shanghai))

Eastern Enterprise Shanghai Logistics Ltd.

Nanjing Yun Fu Trading Ltd. (Nanjing Yun Fu)

Grand Richness Trading (Hong Kong) Co. (Grand Richness (Hong Kong))

Far Eastern Investment Co., Ltd. (EIC) Tung Kai Lease Finance Co., Ltd. (TKLF) Eastern International Lease Finance Co., Ltd. (EILF) ET New Media (ETtoday) Holdings Co., Ltd. (ET New Media) EHR Hotels & Resorts Group Yilan (EHR) Mohist Web Technology Co., Ltd. (MWT)

Show Off Co., Ltd. (Show Off)

ET Pet Co., Ltd (ET Pet)

Dung sen dian jing yun Co., Ltd. (Dung sen dian jing yun) Dung sen shin guang yun Co., Ltd. (Dung sen shin guang yun) Dung sen shin wen yun Co., Ltd. (Dung sen shin wen yun)

Relationship with the Company

The Company’s subsidiary The Company’s subsidiary

The Company’s subsidiary The Company’s subsidiary

The Company’s subsidiary

The Company’s subsidiary (Note 7)

The Company’s subsidiary

The Company’s subsidiary (Note 1)

The Company’s subsidiary (Note 2)

The Company’s subsidiary The Company’s subsidiary

The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary (Note 9)

The Company’s subsidiary (Note 3)

The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary

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	Relationship with
Name of related party	the Company
Oscar Pet Co., Ltd. (Oscar)	The Company’s subsidiary
	(Note 8)
Pet Kingdom Co., Ltd.(Pet Kingdom)	The Company’s subsidiary
	(Note 8)
Kaou Sin Trading Co., Ltd.(Kaou Sin)	The Company’s subsidiary
	(Note 8)
Dung sen min diau yun Co., Ltd. (Dung sen min diau yun)	The Company’s subsidiary
	(Note 4)
Eastern Asset Co., Ltd. (Eastern Asset)	The Company’s subsidiary
	(Note 5)
Eastern Home Shopping & Leisure Co., Ltd. (EHS)	An associate
Eastern New Retail Department (EIM) Co., Ltd. (ET New Retail	An associate
Department)
EHK E&S Co., Ltd.	An associate (Note6)
Natural Beauty Bio-Technology Co., Ltd. (Natural Beauty)	An associate
Happy Shopping CO., LTD.	An associate
Dongsen Personal Insurance Agent Co., Ltd.	Other related parties
Taiwan Gift Card Co. Ltd. (Taiwan Gift Card)	Other related parties
Eastern Realty Co., Ltd.	Other related parties
Dongsen Health Biomedical Co., Ltd. (Dongsen Health	Other related parties
Biomedical)
Eastern E-Commerce Co., Ltd. (Eastern E-Commerce)	Other related parties
EIP TV Co., Ltd. (EIP)	Other related parties
Chinese Non-Store Retailer Association (Non-Store)	Other related parties
Taiwan Information and Communication Association	Other related parties
Hong Yang Foundation (Hong Yang)	Other related parties
Chunghua New media Industry Development Association	Other related parties
(Chunghua New Media)
Inforcharge Co., Ltd. (Inforcharge)	Other related parties
All Directors, Supervisors, general manager and vice personnel	Key management personnel
general of the Company

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

• Note 2: Eastern Enterprise Shanghai Logistics Ltd. has finished liquidation on July 20, 2020.

• Note 3: Show off was dissolved on July 30, 2020. The processure of liquidation was finished on July 9, 2021.

• Note 4: Dung sen min diau yun was established on September 24, 2020.

Note 5: Eastern Asset was established on February 24, 2020.

• Note 6: EHK E&S Co., Ltd. has finished liquidation on June 18, 2020. Note 7: Shanghai Rich was liquidated on March 24, 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 8.51% and 11.49% of the interests

～ 56 ～

in December, 2021 and January, 2022, respectively.

Note 9: 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) Receivables

Accounts Related parties Other receivables Subsidraries Other receivables Associates Other receivables Other related parties Other receivables Key management personnel ables Accounts Related parties Other payables Subsidraries Other payables Associates Other payables Key management personnel Other payables Other related parties ans to related parties Related parties ET New Media MWT EHR ET Pet erest revenue: Relatedparties ET New Media MWT EHR ET Pet		Related parties Subsidraries Associates Other related parties Key management personnel Related parties		December 31, 2021		December 31, 2020	December 31, 2020
							$ 4,271 4,390 1,586 26 $ 10,273 December 31, 2020 159 253 14 - 426 December 31, 2020 $ 200,000 16,500 340,000 60,000 $ 616,500 December 31, 2020 $ 7,221 781 16,481 2,425 $ 26,908
						$
						$

(b) Payables

• (c) Loans to related parties

Interest revenue:

The interest charged by the Company to related parties is based on the average interest rate charged by financial institutions on the Company’ s short-term borrowings. All loans were unsecured and no need to recognized impairment. Interest receivables of the Company as of December 31, 2021 and 2020 were $986 and $766, respectively

～ 57 ～

(d) Borrowings from related parties

owings from related parties
Related parties FESS Panama GRAND SCENE TRADING (Hong Kong) Easten Media Communication (Hong Kong) Grand Richness (Hong Kong)	December 31, 2021 $ 29,745 53,146 41,243 52,881 $ 177,015	December 31, 2020
		$ 45,648 54,778 42,510 58,772 $ 201,708

Interest expenses:

Interest which results from the unsecured borrowings by the Company 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 Company’ s interest payables were amounted to $0 and $38, respectively. For the years ended December 31, 2021 and 2020 the interest expenses paid to the related party for the years ended December 31, 2021 and 2020 were $1,843 and $38, respectively

• (e) Rendering services

For the years ended December 31, 2021 and 2020, consulting services provided to the subsidiaries were $135 and $380, respectively.

• (f) Endorsement / Guarantee provided

• (f-1) For the years ended December 31, 2021 and 2020, the Company had provided a guarantee for loans taken out by related parties. The credit limits of the guarantee were $9,072,455, and $5,686,000, respectively, and the remuneration charged from related parties for using guarantees on the loans taken out (recognized as other income) was $865 and $419, respectively.

• (f-2) For the years ended December 31, 2021 and 2020, the related parties provided a guarantee for loans taken out by the Company. The credit limits of the guarantee were $689,029, and $705,454, respectively, and the remuneration paid to related parties for providing guarantees on the loans taken out by the Company (recognized as finance expense) was $43 and $94, respectively.

• (g) Leases

• (g-1) The Company 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 $1,021 and $1,178, respectively.

• (g-2) As the Company 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 $586 and $548, respectively.

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

(h) Other

• (h-1) For the years ended December 31, 2021 and 2020, the Company paid operating fees to associates, key management, and other related parties to fulfill its business requirements were amounted to $4,685 and $7,126, respectively.

• (h-2) For the years ended December 31, 2021 and 2020, the Company charged management fees and miscellaneous income from related parties amounted to $974 and $1,034, respectively.

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• (h-3) For the years ended December 31, 2021 and 2020, related parties paid the remuneration of directors to the Company was $7,899 and $3,313, respectively.

• (h-4) In order to follow its operating plan, the Company donated $3,000 and $3,500 to related parties in related industries for the years ended December 31, 2021 and 2020, respectively.

• (h-5) On January 2, 2020, the Company’s Board of Directors resolved to invest $ 100,000 in Eastern Asset with a 100% shareholding. 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%. The latter transaction increased its capital by $165,000, and all registration procedures had been completed on July 27, 2020.

• (h-6) In December, 2020, a resolution was passed for the Bermuda’ s capital reduction with the amount of $11,230, and had been distributed to the Company on December 17, 2020.

• (h-7) In May 2021, the Company sold the shares of MWT at the net price $35,294 and recognized loss on disposal of the investment amounted to $4,327.

• (h-8) The Company’ s invested $120,800 in EHR in proportion to the shareholding ratio.

• (h-9) As of December 31, 2021 and 2020, the Company pledged stocks of subsidiaries and associates as collateral.

• c. Key management personnel compensation

Short-term employee benefits ledged assets ledged assets of the Company were as follows: Assets Purpose of pledge Property, plant and equipment Short-term and long- term loans Refundable deposits Bid bonds, performance bonds and security deposits Other current financial assets- current demand deposits Reserve and its interest Other current financial assets- time deposits Letter of credit Investments accounted for using equity method for subsidiary' s stocks Bank loan (guarantee for subsidiaries) ignificant commitments and contingencies . Major commitments were as follows: (a) Unused standby letters of credit: Unused standby letters of credit		For theyears Ended December 31	For theyears Ended December 31	For theyears Ended December 31	For theyears Ended December 31
		2021 $ 47,666 December 31, 2021 $ 335,125 112,855 90 1,198 166,450 $ 615,718 December 31, 2021 $ 5,990		2020 $ 48,992 December 31, 2020
					$ 164,530 112,822 89 14,503 28,133 $ 320,077 December 31, 2020 $ 101,208

29. Pledged assets

Pledged assets of the Company were as follows:

30. Significant commitments and contingencies

• a. Major commitments were as follows:

• (b) Unrecognized contractual commitments:

The Company’ s unrecognized contractual commitments are as follows:

～ 59 ～

Total contract price Payout amount		December 31, 2021 $ 141,461 $ 132,350		December 31, 2020
				$ 246,193 $ 128,838

• 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 to be determined.

• (b) 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.

31. Losses Due to Major Disasters: None.

32. Subsequent Events:

On March 23, 2022, a resolution was passed in the board meeting of the Company for the capital reduction. Please refer to Note 19 for the details.

～ 60 ～

33. Other

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

==> picture [449 x 173] intentionally omitted <==

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

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 $ 161,106 $ 172,519 $ 333,625 $ 145,180 $ 167,672 $ 312,852
Health and labor
insurance 12,598 11,023 23,621 11,607 10,297 21,904
Pension 5,714 6,213 11,927 5,697 6,271 11,968
Remuneration of - 7,923 7,923 - 8,428 8,428
directors
Others 6,538 2,277 8,815 14,467 8,455 22,922
Depreciation expense 245,399 13,507 258,906 229,782 12,952 242,734
Amortization expense - 609 609 - 419 419
----- End of picture text -----

Note: Some of the remuneration received by human support is not excluded from the above employee welfare expenses.

For the years ended December 31, 2021 and 2020, the information on the number of employees and employee benefit expense of the Company is as follows:

Number of employees Number of directors (non-employee) Average employee benefit expense Averageemployeesalary expense Percentage of average employee salary expense Remuneration for supervisors		For the years ended December 31	For the years ended December 31	For the years ended December 31
		2021 262 5 $ 1,471 $ 1,298 9% $ -		2020
				267 5 $ 1,411 $ 1,194 16% $ -

Compensation policies are as follows:

• a. The remuneration for directors in the Article 18th of the Company’ s Articles of Incorporation, is determined based on their involvement in the Company’ s operations, contributions to the Company, and the general pay levels in the industry. Monthly fixed remuneration and transportation allowances paid are based on attendance in board meetings. According to the Company’ s Articles of Incorporation, there is no remuneration of directors.

• b. The Company has established the Board Performance Assessment Regulations. The Board performance evaluation is carried out every year in accordance with the evaluation procedures and evaluation indicators of the regulations. The assessment may be performed by an external independent professional institution or a panel of external experts and scholars every three years. An implementation of the evaluation report from the external independent professional institution, submit it to the Board of directors for review, and serve as a reference for selecting or nominating directors.

• c. Managers’ remuneration is based on the company’ s "Salary Management Regulations" and the responsibilities, positions, seniority, personal abilities, and experience that they are concurrently responsible for, as well as the pay level as the basis for salary evaluation. Remuneration mainly includes three parts: fixed monthly salary, bonus and employee remuneration; remuneration at the time of appointment and salary adjustments after appointment are submitted for approval in accordance with the internal audit authority, and also refer to personal performance evaluation and contribution to the Company. The reports of related performance evaluation and reasonableness of remuneration are reviewed by the

～ 61 ～

Compensation Committee, and then are submitted to the Board of directors for resolution.

• d. The Company’ s year end bonus is issued to reflect the Company’ s operating performance and profit and loss in the previous year, taking into account a number of internal and external factors, and weighting individual performance appraisal, Then the proposal of year end bonus is recommended by the general manager, and is reported to the chairman for approval.

• e. The estimated employee’ s compensation of the Company is set at the rates of 3.5% of profit before income tax; and after approval by the board of directors, the employee’s compensation distributed is determined based on their salaries, contributions to the Company in the previous year, the proportion of service days for the Company and performance for individuals.

• f. In order to maintain the competitiveness of compensation, the Company evaluates the pay level in the labor market by conducting salary surveys every year. Operational performance and future development are also taken into consideration when determining the compensation policy. Compensation and performance bonuses of employees differ based on the performance of each employee in order to reward the outstanding employees for their contributions to the Company.

34. 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 Company 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 paidin capital: None.

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

• b. Information on investees

  • Please refer to Table 6 for the information on investees for the years ended December 31, 2021.

• c. Information on investment in Mainland China

  • (a) Please refer to Table 7 for the relevant information such as the name and main business items of the investee company in Mainland China.

  • (b) Please refer to Table 7 for the limitation on investment in Mainland China

  • (c) Please refer to Table 7 for the significant transactions with investee companies in Mainland China.

• d. Major shareholders

• Please refer to Table 8 for the major shareholders for the years ended December 31, 2021.

• 35. Segment information

Please refer to the consolidated financial statements for the year ended December 31, 2021.

～ 62 ～

Eastern Media International Corporation

Statement of cash and cash equivalents

December 31, 2021

(Expressed in thousands of New Taiwan Dollars)

Item Cash Bank Cash equivalents	Description Cash on hand Demand deposits Checking accounts deposits Foreign currency deposits	Amount $ 1,491 165,127 608 6,072 171,807 460,118 $ 633,416	Note

Statement of current financial assets at fair

value through profit or loss

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

Name of security China Developmen t Financial Holdings Phoenix New Media Co., Ltd Taiwan Cement Co., Ltd. Formosa Plastics corporation	Category of security	Shares/ Units	Par value (NT$)	Amount	Rate	Acquisi- tion cost	Fair value Movement of fair value attribute credit risk Price (NT$) Amount 17.5 - - HKD$0.44 3 - 48 297,600 - 104 388,336 - $ 685,939	Note
							Price (NT$)
	Domestic stock Foreign stock Domestic stock Domestic stock	1 2,000 6,200,000 3,734,000	$ 10 - HKD$0.1 HKD$0.2 10 6,200 10 37,340		-% -% -% -%	- 19 320,550 396,615	17.5 HKD$0.44 48 104	Own Own Own Own

～ 63 ～

Eastern Media International Corporation

Statement of changes in investments accounted for using the equity method

For the year ended December 31, 2021

(Expressed in thousands of New Taiwan Dollars)

Beginning Balance Name of investee Shares Amount FESS-Bermuda 600,000 $ 1,639 FESS-Panama 71,700 1,984,456 Grand Richness (Hong Kong) 16,214,616 61,686 EIC 67,641,445 967,085 EILF 40,690,330 333,414 TKLF 40,847,294 361,729 MWT 510,000 40,801 EHS 6,637,500 123,672 ET New Media 53,522,508 (478,618) EHR 20,893,086 28,133 Eastern Asset 49,500,000 494,764 3,918,761 Add: Classified as other liabilities 478,618 $ 4,397,379		Beginning Balance	Beginning Balance	Beginning Balance	**Addition **	**Addition **	**Addition **		Decrease Shares Amount - - - - - - - (238,587) - - - - (510,000) (42,624) - (112,838) - - - - - - (394,049)	Decrease Shares Amount - - - - - - - (238,587) - - - - (510,000) (42,624) - (112,838) - - - - - - (394,049)		Capital surplus - - - - - - - - (4,526) - - (4,526) -		Remeasurement Retained earnings of defined benefit plans - - - - - - (52) (70) - - - - - - - (23) (26) (110) - - - - (78) (203)	Remeasurement Retained earnings of defined benefit plans - - - - - - (52) (70) - - - - - - - (23) (26) (110) - - - - (78) (203)	Remeasurement Retained earnings of defined benefit plans - - - - - - (52) (70) - - - - - - - (23) (26) (110) - - - - (78) (203)	Investment Income or loss (742) 64,016 (3,469) 307,078 (7,022) (2,906) 1,816 117,781 (12,707) (103,880) (751) 359,214	Unrealized gain or loss of financial assets at fair value through other Translation adjustment Comprehensive income (30) - (41,901) - (2,030) - (4,956) 11 - - - - - 7 (1,703) 4 - - - - - - (50,620) 22	Unrealized gain or loss of financial assets at fair value through other Translation adjustment Comprehensive income (30) - (41,901) - (2,030) - (4,956) 11 - - - - - 7 (1,703) 4 - - - - - - (50,620) 22	Unrealized gain or loss of financial assets at fair value through other Translation adjustment Comprehensive income (30) - (41,901) - (2,030) - (4,956) 11 - - - - - 7 (1,703) 4 - - - - - - (50,620) 22		Ending Balance	Ending Balance		Amount Net Assets Value Collateral 867 867 None 2,006,571 2,006,571 〃 56,187 56,187 〃 1,030,509 1,030,509 〃 326,392 326,392 〃 358,823 358,823 〃 - - - 126,893 126,893 Long term loans (495,987) (495,987) None 45,053 45,053 Long term loans 494,013 494,013 None 3,949,321 495,987 4,445,308
			$	Amount 1,639 1,984,456 61,686 967,085 333,414 361,729 40,801 123,672 (478,618) 28,133 494,764 3,918,761 478,618 4,397,379	Shares - - - - - - - - - 12,080,000 -		Amount - - - - - - - - - 120,800 -		Shares - - - - - - (510,000) - - - -													Shares 600,000 71,700 16,214,616 67,641,445 40,690,330 40,847,294 - 6,637,500 53,522,508 32,973,086 49,500,000	Percentage of ownership 100.00 100.00 100.00 97.90 53.77 53.76 - 6.51 89.20 60.40 55.00
							120,800									(203)				22
			$

Note 1: The increase in investments resulted from acquire a subsidiary amounted to $120,800. The decrease in investments resulted from receiving dividends of investees amounting to $354,428, and disposal of investees with the amount of $39,621.

～ 64 ～

Eastern Media International Corporation

Statement of changes in Property, plant and equipment

For the year ended December 31, 2021

(Expressed in thousands of New Taiwan Dollars)

Please refer to Note 13 for the details.

Statement of changes in right-of-use assets

Please refer to Note 14 for the details.

Statement of lease liabilities

December 31, 2021

Item (subject) Land and equipment Buildings Transportation equipment	Lease term 108.01~127.12 106.05~113.06 110.05~113.05	Discount rate 3% 3% 3%	Ending Balance Amount
			$ 3,610,103 19,864 1,155 $ 3,631,122

Statement of other non-current liabilities, others

Item Credit balance of investments accounted for using equity method transferred to non- current liabilities	Description	Amount $ 495,987	Note

～ 65 ～

Eastern Media International Corporation

Statement of operating revenue

For the year ended December 31, 2021

(Expressed in thousands of New Taiwan Dollars)

Item Loading and storage revenue Loading and unloading revenue Storage revenue Other revenue Subtotal Less: Sales return	Description	Amount $ 1,023,521 340,307 6,080	Note
		1,369,908 -
		$ 1,369,908

Statement of operating costs

Item Storage costs Port charges Commercial cost Maintenance cost Operating cost	Amount $ 31,681 577,094 32,926	Note
	$ 641,701

～ 66 ～

Eastern Media International Corporation

Statement of operating expenses

For the year ended December 31, 2021

(Expressed in thousands of New Taiwan Dollars)

Item Salary and wages expenses Insurance expense Entertainment expense Depreciation expense Professional service fees Other expenses	**Description **	Amount Note $ 160,186 11,564 26,297 13,507 11,685 114,009 Less than 5% of the total account balance $ 337,248	Note

Statement of the net amount of other non operating income and expenses

Please refer to Note 23 for the details.

Statement of finance costs

Please refer to Note 23 for the details.

～ 67 ～

EASTERN MEDIA INTERNATIONAL CORPORATION 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

==> picture [1085 x 374] intentionally omitted <==

----- 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.

～ 68 ～

EASTERN MEDIA INTERNATIONAL CORPORATION 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

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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.

～ 69 ～

EASTERN MEDIA INTERNATIONAL CORPORATION 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
company Shares/Units Carrying value Percentage of ownership Fair value Note
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
〃 Formosa Plastics corporation - 〃 3,734,000 388,336 0.06 % 388,336
〃 Kaohsiung Harbor Stevedoring Co., Ltd. - Non-current financial assets at fair value through other 750,000 7,500 15.00 % 7,500
comprehensive income
〃 Leo Exploitation Co., Ltd. - 〃 165,663 - 11.43 % -
EILF Formosa Plastics corporation - Financial assets at fair value through profit or loss 700,000 72,800 0.01 % 72,800
〃 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
〃 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
----- End of picture text -----

～ 70 ～

EASTERN MEDIA INTERNATIONAL CORPORATION

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

Note 1: Including exchange differences on financial assets designated at fair value, investments accounted for using equity method, and translation.

～ 71 ～

EASTERN MEDIA INTERNATIONAL CORPORATION 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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----- Start of picture text -----

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

～ 72 ～

EASTERN MEDIA INTERNATIONAL CORPORATION Information on investees

For the years ended December 31, 2021 (Experssed in Thousands of New Taiwan Dollars, Except for the Noted Items) Table 6

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Name of Name of investee Location Main businesses and products Original investment amount Ending balance Net income (losses) of Share of profits/ Note
investor December 31, December 31, Shares/Units Percentage of Carrying value investee losses of investee
2021 2020 ownership
The Company FESS-Bermuda Bermuda Holding company $ 32,161 $ 32,161 600,000 100.00% $ 867 ($ 742 ) ($ 742) Subsidiary
The Company FESS-Panama Panama Holding company 2,245,038 2,245,038 71,700 100.00% 2,006,571 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 ( 3,469 ) ( 3,469 ) Subsidiary
The Company EIC Taiwan General investing 500,525 500,525 67,641,445 97.90% 1,030,509 313,665 307,078 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 ( 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 ( 5,405 ) ( 2,906 ) Subsidiary
The Company MWT Taiwan Application Service - 35,400 - -% - 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 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 ) ( 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 ( 171,987 ) ( 103,880 ) Subsidiary
The Company Eastern Asset Taiwan Real estate leasing 495,000 495,000 49,500,000 55.00% 494,013 ( 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 ) ( 14,245 ) disclosure Subsidiary
EIC EHS Taiwan Department stores, supermarkets, online stores 243,794 243,794 19,726,660 19.36% 377,129 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 ( 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 ( 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 ( 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 ( 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 ( 171,987 ) 〃 Subsidiary
EILF TKLF Taiwan Planning and design and leasing of cable TV broadcasting
system 278,342 278,342 27,351,000 36.00% 240,265 ( 5,405) 〃 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 ( 171,987) 〃 Subsidiary
----- End of picture text -----

(to be continued)

～ 73 ～

(continued)

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Name of Name of investee Location Main businesses and products Original investment amount Ending balance Net income (losses) of Share of profits/ Note
investor December 31, December 31, Shares/Units Percentage of Carrying value investee losses of investee
2021 2020 ownership
FESS-Panama GSMC-Cayman
Cayman Holding company
Exempt from
Islands $ 137,363 $ 137,363 450,000 100.00% $ 78,306 $ 1,445 disclosure Subsidiary
FESS-Panama
Eastern Media Hong Kong Holding company
Communication
(Hong Kong) 305 305 28,569,840 100.00% 45,836 ( 70 ) 〃 Subsidiary
FESS-Panama
Natural Beauty Cayman Investing activities
Islands 2,060,871 2,060,871 600,630,280 30.00% 1,905,459 127,059 〃 Associates
GSMC-cayman GRAND SCENE Hong Kong Investing activities
TRADING
(HONG KONG) 125,153 125,153 3,198,000 100.00% 75,966 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 ( 141 ) 〃 Subsidiary
ET New Media Dung sen dian jing Taiwan Amusement park information leisure
yun 100 100 10,000 100.00% ( 45) ( 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 ( 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 ( 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 ( 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 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 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 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.

～ 74 ～

EASTERN MEDIA INTERNATIONAL CORPORATION 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 7

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

==> picture [1080 x 595] intentionally omitted <==

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

Name of investee. Main businesses Total amount of Method of Accumulated outflow of Investment flows Accumulated outflow of Net income Percentage of Investment income Book Accumulated
and products paid in capital investment investment from Taiwan as Outflow Inflow investment from Taiwan as (losses) of the ownership (losses) Value remittance of earnings
of January 1, 2021 of December 31, 2021 investee in current period
Eastern Enterprise Operating international $ - Note 2 $ 905,136 - - $ 905,136 $ - -% $ - $ - $ -
Development circulation logistics
(Shanghai) Ltd business
Ding Kai Wholesale and retailing goods - Note 3 354,373 - - 354,373 - -% - - -
(Shanghai)
Sheng Hang Wholesale and retailing goods - Note 4 165,996 - - 165,996 - -% - - -
(Shanghai)
RICHNESS Retail of clothing, 1,089,345 Note 5 1,054,608 - - 1,054,608 ( 728 ) 100.00% ( 728 ) 3,987 -
TRADING garments and
(SHANGHAI) accessories, household
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% ( 57 ) 4,128 -
Jiangsu Sen Fu Da Research and development 43,439 Note 7 - - - - - 34.00% - - -
of 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 ) -% ( 22 ) - -
wholesale
Shanghai Natural Production and sale of 434,041 Note 5 - - - - 11,394 30.00% 3,418 146,880 -
Beauty Fuli beauty care products and
Cosmetics provision of beauty and
body care services
Company
Limited
Shanghai Natural Sales of health care 93,484 Note 5 - - - - ( 1,368 ) 30.00% ( 410 ) 30,742 -
Beauty Bio-Med products
Company
Limited
Shanghai Natural Production and sale of 1,053,273 Note 5 - - - - 7,673 30.00% 2,302 309,405 -
Beauty Fuli beauty care products and
Cosmetics provision of beauty and
body care services
Company
Limited
----- End of picture text -----

(to be continued)

～ 75 ～

(continued)

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.

2. Limitation on investment in Mainland China:

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

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.

3. 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.

～ 76 ～

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

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

～ 77 ～