FCFC — Audit Report / Information 2021

Nov 16, 2021

FORMOSA CHEMICALS & FIBRE CORPORATION

PARENT COMPANY ONLY FINANCIAL

STATEMENTS AND REPORT OF INDEPENDENT

ACCOUNTANTS

DECEMBER 31, 2021 AND 2020

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For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

FORMOSA CHEMICALS & FIBRE CORPORATION

INDEX Items Index Independent Auditors’ Report Parent Company Only Balance Sheets Parent Company Only Statements of Comprehensive Income Parent Company Only Statements of Changes in Equity Parent Company Only Statements of Cash Flows Notes to Parent Company Only Financial Statements	Pages
	1-6 7-8 9-10 11 12-13 14-71

INDEPENDENT AUDITORS’ REPORT TRANSLATED FROM CHINESE

PWCR21000304 To the Board of Directors and Shareholders of FORMOSA CHEMICALS & FIBRE CORPORATION

Opinion

We have audited the accompanying parent company only balance sheets of FORMOSA CHEMICALS & FIBRE CORPORATION as at December 31, 2021 and 2020, and the related parent company only statements of comprehensive income, of changes in equity and of cash flows for the years then ended, and notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, based on our audits and the reports of other auditors (refer to the Other Matter – Audits of the Other Independent Auditors section of our report), the accompanying parent company only financial statements present fairly, in all material respects, the financial position of FORMOSA CHEMICALS & FIBRE CORPORATION as at December 31, 2021 and 2020, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and generally accepted auditing standards in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ responsibilities for the audit of the consolidated financial statements section of our report. We are independent of FORMOSA CHEMICALS & FIBRE CORPORATION in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Key audit matters

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

Assessment of loss allowance for accounts receivable

Description

Refer to Note 4(9) of parent company only financial statements for accounting policy on accounts receivable, Note 5(2) for uncertainty of accounting estimates and assumptions in relation to impairment of accounts receivable, and Note 6(4) for details of loss allowance for accounts receivable. As of December 31, 2021, the Company’s accounts receivable amounted to NT$25,122,845 thousand, net of loss allowance in the amount of NT$72,076 thousand.

The Company assesses expected credit impairment loss on accounts receivable based on historical experience, forward-looking information and known reason or existing objective evidences. For those accounts which are considered uncollectible, the Company recognises impairment with a credit to accounts receivable. Management evaluates the reasonableness of estimated provision periodically. As the estimation of loss allowance is subject to management’s judgement and business indicators, the amount of provision is based on the collectability of accounts receivable, and considering that accounts receivable and loss allowance are material to the financial statements, we considered the loss allowance for accounts receivable a key audit matter.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

1. Obtained the overdue aging report used when management assessed the expected credit impairment loss, assessed whether the logic of data source was consistently applied, and tested its accuracy with proper documents.

2. Assessed the reasonableness of estimates used by management in calculating expected credit impairment loss and obtained supporting documents, including forward-looking information, disputed accounts, overdue accounts, subsequent collection, and other indications that would show the customer would be unable to repay on schedule.

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1. Performed subsequent collection test in order to verify the adequacy of loss allowance provided for accounts receivable.

Valuation of inventories

Description

Refer to Note 4(11) for accounting policy on inventory valuation, Note 5(2) for accounting estimates and assumption uncertainty in relation to inventory valuation, and Note 6(5) for detailed information on allowance for inventory valuation losses. As of December 31, 2021, the inventory and allowance for inventory valuation losses were NT$22,015,119 thousand and NT$975,818 thousand, respectively. The Company is primarily engaged in the manufacture and sales of petrochemical plastic products, fibers weaving and cords. Because the price of petrochemical plastic products is subject to the fluctuations in international crude oil prices, and the textile market is competitive, there is a higher risk of inventory valuation loss. The Company recognises inventories at the lower of cost and net realisable value, and the net realisable value is calculated based on average price less selling expenses. Since the net realisable value used in inventory valuation involves subjective judgement and high uncertainty in estimation, and the allowance for inventory valuation loss is material to the financial statements, we considered the valuation of inventory as a key audit matter.

How our audit addressed the matter

We performed the following audit procedures on the above key audit matter:

1. Assessed the reasonableness of policies and procedures on allowance for inventory valuation loss, including the reasonableness of classification of inventory in determining the net realisable value;

2. Understood the Company’s warehousing control procedures, reviewed the annual physical inventory count plan and participated in the annual inventory count in order to assess the effectiveness of the classification of inventory and internal control over inventory.

3. Checked the method in calculating the net realisable value of inventory and assessed the reasonableness of allowance for valuation loss.

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Other matter – audits of the other independent auditors

We did not audit the financial statements of certain investments accounted for under the equity method. Investments accounted for under the equity method amounted to NT$126,366,526 thousand and NT$113,412,424 thousand, both constituting 25% of total assets as of December 31, 2021 and 2020, respectively and comprehensive income was NT$14,884,187 thousand and NT$1,916,061 thousand, constituting 24% and 19% of total comprehensive income for the years then ended, respectively. Those financial statements were audited by other independent auditors whose reports thereon have been furnished to us, and our opinion expressed herein is based solely on the audit reports of the other independent auditors.

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

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of 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 audit committee, are responsible for overseeing the Company’s financial reporting process.

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

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the generally accepted auditing standards in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise

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from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these parent company only financial statements.

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

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 auditors’ 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.

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

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

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

Wu, Han-Chi Chou, Chien-Hung for and on behalf of PricewaterhouseCoopers, Taiwan March 9, 2022

------------------------------------------------------------------------------------------------------------------------------------------------The accompanying parent company only financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying parent company only financial statements and independent auditors’ report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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FORMOSA CHEMICALS & FIBRE CORPORATION PARENT COMPANY ONLY BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

Assets	Notes 6(1) 6(2) 6(3) 6(4) 6(4) and 7 6(4) 6(4) and 7 7 7 6(5) 6(3) 6(6) 6(7) and 8 6(8) 6(23) 6(1)	December 31, 2021 AMOUNT % $ 2,791,166 1 3,793,036 1 115,266,234 23 258,148 - 318,393 - 7,504,916 1 17,617,929 3 1,256,349 - 2,698,693 1 21,039,301 4 4,084,191 1 176,628,356 35 31,887,504 6 228,496,601 45 56,451,606 11 21,468 - 2,118,024 1 7,888,369 2 326,863,572 65 $ 503,491,928 100	December 31, 2020	December 31, 2020
		AMOUNT $ 2,791,166 3,793,036 115,266,234 258,148 318,393 7,504,916 17,617,929 1,256,349 2,698,693 21,039,301 4,084,191 176,628,356 31,887,504 228,496,601 56,451,606 21,468 2,118,024 7,888,369 326,863,572 $ 503,491,928	AMOUNT $ 3,705,265 3,888,510 108,390,105 266,891 127,610 5,796,622 12,181,977 722,920 4,195,598 13,243,545 4,554,725 157,073,768 19,017,691 205,595,844 54,560,182 27,188 1,956,173 7,065,392 288,222,470 $ 445,296,238	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1120 Current financial assets at fair value through other comprehensive income 1150 Notes receivable, net 1160 Notes receivable - related parties 1170 Accounts receivable, net 1180 Accounts receivable - related parties 1200 Other receivables 1210 Other receivables - related parties 130X Inventory 1470 Other current assets 11XX Total current assets Non-current assets 1517 Non-current financial assets at fair value through other comprehensive income 1550 Investments accounted for under equity method 1600 Property, plant and equipment 1755 Right-of-use assets 1840 Deferred income tax assets 1900 Other non-current assets 15XX Total non-current assets 1XXX Total assets				1 1 24 - - 1 3 - 1 3 1
				35
				4 46 12 - 1 2
				65
				100

(Continued)

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		FORMOSA CHEMICALS & FIBRE CORPORATION	FORMOSA CHEMICALS & FIBRE CORPORATION	FORMOSA CHEMICALS & FIBRE CORPORATION	FORMOSA CHEMICALS & FIBRE CORPORATION
			PARENT COMPANY ONLY BALANCE SHEETS
			(Expressed in thousands of New Taiwan dollars)
					December 31, 2021				December 31, 2020
	Liabilities and equity			Notes	AMOUNT	%			AMOUNT	%
	Current liabilities
2100	Short-term borrowings		6(9)	$	8,884,300		2	$	13,763,200	3
2110	Short-term notes and bills payable		6(9)		17,496,684		3		15,596,755	4
2170	Accounts payable				1,377,476		-		1,838,945	-
2180	Accounts payable - related parties		7		16,022,287		3		11,083,977	3
2200	Other payables		7		7,044,405		1		5,227,252	1
2230	Current income tax liabilities				3,978,189		1		1,135,266	-
2280	Current lease liabilities				4,749		-		5,669	-
2320	Long-term liabilities, current portion 6(10)				4,550,000		1		2,050,000	1
2399	Other current liabilities				2,596,144		1		5,109,713	1
21XX	Total current liabilities				61,954,234	12			55,810,777	13
	Non-current liabilities
2530	Corporate bonds payable		6(10)		45,500,000		9		40,050,000	9
2570	Deferred income tax liabilities		6(23)		31,739		-		40,277	-
2580	Non-current lease liabilities				17,130		-		21,813	-
2600	Other non-current liabilities		6(11)		5,018,293		1		5,019,513	1
25XX	Total non-current liabilities				50,567,162	10			45,131,603	10
2XXX	Total liabilities				112,521,396	22			100,942,380	23
	Equity
	Share capital		6(12)
3110	Common stock				58,611,863	12			58,611,863	13
	Capital surplus		6(13)
3200	Capital surplus				9,192,999		2		9,167,637	2
	Retained earnings		6(14)
3310	Legal reserve				66,313,982	13			64,335,076	14
3320	Special reserve				70,032,921	14			66,328,339	15
3350	Unappropriated retained earnings				72,145,718	14			53,380,101	12
	Other equity interest		6(15)
3400	Other equity interest				114,997,001	23			92,854,794	21
3500	Treasury stocks		6(12)	(	323,952)		- (		323,952)	-
3XXX	Total equity				390,970,532	78			344,353,858	77
	Significant contingent liabilities and		9
	unrecognized contract commitments
	Significant events after the balance		11
	sheet date
3X2X	Total liabilities and equity			$	503,491,928	100		$	445,296,238	100

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

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FORMOSA CHEMICALS & FIBRE CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

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

Items

For the years ended December 31 2021 2020 Notes AMOUNT % AMOUNT % 6(16) and 7 $ 243,485,062 100 $ 159,681,997 100 6(5)(21)(22) and 7 ( 215,215,994)( 88) ( 147,711,667)( 92) 28,269,068 12 11,970,330 8 ( 325,044) - ( 47,243) - 47,243 - 285,173 - 27,991,267 12 12,208,260 8 6(11)(21)(22) and 7 ( 8,054,373) ( 3 ) ( 4,725,799) ( 3 ) ( 3,873,175)( 2) ( 3,301,210)( 2) ( 11,927,548)( 5) ( 8,027,009)( 5) 16,063,719 7 4,181,251 3 6(17) 48,103 - 129,309 - 6(18) and 7 3,414,224 1 5,174,466 3 6(19) ( 626,220) - ( 1,167,811) ( 1 ) 6(7)(20) and 7 ( 697,113) - ( 808,895) - 6(6) 23,460,919 9 13,094,869 8 25,599,913 10 16,421,938 10 41,663,632 17 20,603,189 13 6(23) ( 3,304,285)( 1) ( 1,059,048)( 1) $ 38,359,347 16 $ 19,544,141 12

4000 Operating revenue 5000 Operating costs 5900 Net operating margin 5910 Unrealised profit from sales 5920 Realised profit from sales 5950 Net operating margin Operating expenses 6100 Selling expenses 6200 General and administrative expenses 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Finance costs 7070 Share of profit of associates and joint ventures accounted for under equity method 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Profit for the year

(Continued)

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FORMOSA CHEMICALS & FIBRE CORPORATION

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

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

Items	Notes	For the years ended December 31 2021 2020 AMOUNT % AMOUNT % ( $ 349,586) - $ 305,882 - 19,745,942 8 ( 15,129,232) ( 10 ) 4,479,492 2 6,087,983 4 23,875,848 10 ( 8,735,367) ( 6 ) ( 488,425) - 278,998 - ( 614,116) ( 1 ) ( 855,477) - 111,624 - ( 104,057) - ( 990,917) ( 1 ) ( 680,536) - $ 22,884,931 9 ($ 9,415,903) ( 6 ) $ 61,244,278 25 $ 10,128,238 6 Before Tax After Tax Before Tax After Tax $ 7.12$ 6.56$ 3.52$ 3.34 $ 7.11$ 6.54$ 3.52$ 3.33	For the years ended December 31 2021 2020 AMOUNT % AMOUNT % ( $ 349,586) - $ 305,882 - 19,745,942 8 ( 15,129,232) ( 10 ) 4,479,492 2 6,087,983 4 23,875,848 10 ( 8,735,367) ( 6 ) ( 488,425) - 278,998 - ( 614,116) ( 1 ) ( 855,477) - 111,624 - ( 104,057) - ( 990,917) ( 1 ) ( 680,536) - $ 22,884,931 9 ($ 9,415,903) ( 6 ) $ 61,244,278 25 $ 10,128,238 6 Before Tax After Tax Before Tax After Tax $ 7.12$ 6.56$ 3.52$ 3.34 $ 7.11$ 6.54$ 3.52$ 3.33	For the years ended December 31 2021 2020 AMOUNT % AMOUNT % ( $ 349,586) - $ 305,882 - 19,745,942 8 ( 15,129,232) ( 10 ) 4,479,492 2 6,087,983 4 23,875,848 10 ( 8,735,367) ( 6 ) ( 488,425) - 278,998 - ( 614,116) ( 1 ) ( 855,477) - 111,624 - ( 104,057) - ( 990,917) ( 1 ) ( 680,536) - $ 22,884,931 9 ($ 9,415,903) ( 6 ) $ 61,244,278 25 $ 10,128,238 6 Before Tax After Tax Before Tax After Tax $ 7.12$ 6.56$ 3.52$ 3.34 $ 7.11$ 6.54$ 3.52$ 3.33
			Before Tax	After Tax
			$ 7.12 $ 7.11	$ 6.56 $ 6.54

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

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FORMOSA CHEMICALS & FIBRE CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

(Expressed in thousands of New Taiwan dollars)

For the year ended December 31, 2020 Balance at January 1, 2020 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) Appropriations of 2019 earnings Legal reserve Special reserve Cash dividends Dividends paid to subsidiaries to adjust capital surplus Changes in the net interest of associates recognised under the equity method Expired cash dividends reclassified to capital surplus Expired dividends paid from capital surplus Changes in ownership interests in subsidiaries Disposal of investments in equity instruments designated at fair value through other comprehensive income Balance at December 31, 2020 For the year ended December 31, 2021 Balance at January 1, 2021 Profit for the year Other comprehensive income (loss) for the year Total comprehensive income (loss) Appropriations of 2020 earnings Legal reserve Special reserve Cash dividends Dividends paid to subsidiaries to adjust capital surplus Changes in the net interest of associates recognised under the equity method Expired cash dividends reclassified to capital surplus Expired dividends paid from capital surplus Changes in ownership interests in subsidiaries Disposal of investments in equity instruments designated at fair value through other comprehensive income Balance at December 31, 2021	Notes		Share capital - common stock		Capital surplus				Retained Earnings						Other EquityInterest				Treasurystocks		Total
							Legal reserve		Special reserve		Unappropriated retained earnings	d	Financial statements translation ifferences of foreign operations		Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income		Gains (losses) on hedginginstruments
	6(15) 6(14) 6(13) 6(13) 6(13) 6(13) 6(13) 6(15) 6(14) 6(13) 6(13) 6(13) 6(13) 6(13)		$ 58,611,863 - - - - - - - - - - - - $ 58,611,863 $ 58,611,863 - - - - - - - - - - - - $ 58,611,863		$ 9,138,869 - - - - - - 17,295 4,568 4,420 ( 304 ) 2,789 - $ 9,167,637 $ 9,167,637 - - - - - - 11,379 442 12,366 ( 682 ) 1,857 - $ 9,192,999		$ 61,364,852 - - - 2,970,224 - - - - - - - - $ 64,335,076 $ 64,335,076 - - - 1,978,906 - - - - - - - - $ 66,313,982		$ 60,171,925 - - - - 6,156,414 - - - - - - - $ 66,328,339 $ 66,328,339 - - - - 3,704,582 - - - - - - - $ 70,032,921		$ 64,990,184 19,544,141 404,543 19,948,684 ( 2,970,224 ) ( 6,156,414 ) ( 22,272,508 ) - ( 88,768 ) - - ( 40,929 ) ( 29,924 ) $ 53,380,101 $ 53,380,101 38,359,347 ( 537,510 ) 37,821,837 ( 1,978,906 ) ( 3,704,582 ) ( 14,652,966 ) - 2,565 - - - 1,277,669 $ 72,145,718		($ 4,560,606 ) - ( 712,000 ) ( 712,000 ) - - - - - - - - - ($ 5,272,606 ) ($ 5,272,606 ) - ( 968,064 ) ( 968,064 ) - - - - - - - - - ($ 6,240,670 )		$ 107,120,877 - ( 9,139,910 ) ( 9,139,910 ) - - - - 84,386 - - - 29,924 $ 98,095,277 $ 98,095,277 - 24,413,358 24,413,358 - - - - ( 2,565 ) - - - ( 1,277,669 ) $ 121,228,401		$ 659 - 31,464 31,464 - - - - - - - - - $ 32,123 $ 32,123 - ( 22,853 ) ( 22,853 ) - - - - - - - - - $ 9,270		($ 323,952 ) - - - - - - - - - - - - ($ 323,952 ) ($ 323,952 ) - - - - - - - - - - - - ($ 323,952 )		$ 356,514,671 19,544,141 ( 9,415,903 ) 10,128,238 - - ( 22,272,508 ) 17,295 186 4,420 ( 304 ) ( 38,140 ) - $ 344,353,858 $ 344,353,858 38,359,347 22,884,931 61,244,278 - - ( 14,652,966 ) 11,379 442 12,366 ( 682 ) 1,857 - $ 390,970,532

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

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FORMOSA CHEMICALS & FIBRE CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax Adjustments Adjustments to reconcile profit (loss) Depreciation Amortization Net loss on financial assets and liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of profit or loss of associates accounted for under the equity method (Gain) loss on disposal and scrap of property, plant and equipment Unrealised (realised) gain from sales Changes in operating assets and liabilities Changes in operating assets Notes receivable Notes receivable-related parties Accounts receivable Accounts receivable-related parties Other receivables Inventory Other current assets Changes in operating liabilities Accounts payable Accounts payable-related parties Other payables Other current liabilities Accrued pension liabilities Cash inflow generated from operations Interest received Dividends received Interest paid Income tax paid Net cash flows from operating activities

For the years ended December 31 Notes 2021 2020 $ 41,663,632 $ 20,603,189 6(7)(8)(21) 5,958,059 5,648,825 6(21) 3,470,945 3,166,572 6(19) 95,474 155,458 6(20) 697,113 808,895 6(17) ( 48,103 ) ( 129,309 ) 6(18) ( 2,839,615 ) ( 3,955,134 ) ( 23,460,919 ) ( 13,094,869 ) 6(19) ( 13,102 ) 204,906 277,801 ( 237,930 ) 8,743 ( 50,502 ) ( 190,783 ) ( 82,611 ) ( 1,708,294 ) ( 160,761 ) ( 5,435,952 ) 657,499 ( 536,003 ) 329,481 ( 7,795,756 ) 5,802,491 470,534 ( 1,522,214 ) ( 461,469 ) ( 272,413 ) 4,938,310 1,056,168 1,992,426 ( 887,969 ) ( 2,513,569 ) 1,196,791 ( 299,767 ) ( 793,963 ) 14,269,705 18,442,600 50,677 136,323 6,710,126 12,902,065 ( 666,537 ) ( 820,936 ) ( 520,130 ) ( 209,720 ) 19,843,841 30,450,332

(Continued)

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FORMOSA CHEMICALS & FIBRE CORPORATION

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Decrease in other receivables-related parties Proceeds from disposal of financial assets at fair value through profit or loss Acquisition of investments accounted for under the equity method Proceeds from liquidation of investments accounted for under the equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in non-current assets Net cash flows used in investing activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in short-term borrowings Increase in short-term notes and bills payable Payment of long-term borrowings Increase in corporate bonds payable Payment of corporate bonds payable Payment of lease liabilities (Decrease) increase in other non-current liabilities Payment of cash dividends Expired dividends paid from capital surplus Net cash flows used in financing activities Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year

For the years ended December 31 Notes 2021 2020 $ 1,496,905 $ 8,603,238 - 23,293 ( 936,282 ) ( 1,383,254 ) 738,764 - 6(25) ( 8,041,818 ) ( 6,989,725 ) 21,820 65,876 ( 4,293,505 ) ( 2,621,654 ) ( 11,014,116 ) ( 2,302,226 ) ( 4,878,900 ) ( 7,293,800 ) 1,899,929 1,200,385 - ( 4,033,333 ) 10,000,000 10,000,000 ( 2,050,000 ) ( 2,750,000 ) ( 5,680 ) ( 6,022 ) ( 51,039 ) 22,707 6(25) ( 14,657,452 ) ( 22,267,479 ) ( 682 ) ( 304 ) ( 9,743,824 ) ( 25,127,846 ) ( 914,099 ) 3,020,260 3,705,265 685,005 $ 2,791,166 $ 3,705,265

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

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FORMOSA CHEMICALS & FIBRE CORPORATION NOTES TO THE PARENT COMPANY ONLY FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

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

1. History and Organization

Formosa Chemicals & Fibre Corporation (the Company) was founded on March 5, 1965. The Company now has eight business divisions, namely First Chemical Division, Petrochemicals Division, Third Chemical Division, Plastics Division, Textile Division, First Fiber Division, Second Fiber Division, and Engineering & Construction Division. The Company’s major businesses are production and sales of petrochemical products, including PTA, PS, AN, Butadiene, SM polymer, SM, benzene, toluene, p- xylene (PX) and o-xylene (OX), as well as nylon fiber, and rayon staple fiber. The Company is also engaged in spinning, weaving, dyeing and finishing.

2. The Date of Authorisation for Issuance of the Financial Statements and Procedures for Authorisation

These parent company only financial statements were authorised for issuance by the Board of Directors on March 9, 2022.

3. Application of New Standards, Amendments and Interpretations

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRSs”) as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by the FSC effective from 2021 are as follows:

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Effective date by
International
Accounting
New Standards, Interpretations and Amendments Standards Board
Amendments to IFRS 4,‘Extension of the temporary exemption from January 1, 2021
applying IFRS 9’
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘Interest January 1, 2021
Rate Benchmark Reform— Phase 2’
Amendment to IFRS 16,‘Covid-19-related rent concessions beyond April 1, 2021 (Note)
30 June 2021’
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Note: Earlier application from January 1, 2021 is allowed by the FSC.

The above standards and interpretations have no significant impact to the Company’s financial condition and operating results based on the Company’s assessment.

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(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by the Company

New standards, interpretations and amendments endorsed by the FSC effective from 2022 are as follows:

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Effective date by
International
Accounting
New Standards, Interpretations and Amendments Standards Board
Amendments to IFRS 3,‘Reference to the conceptual framework’ January 1, 2022
Amendments to IAS 16,‘Property, plant and equipment: proceeds before January 1, 2022
intended use’
Amendments to IAS 37,‘Onerous contracts—cost of fulfilling a contract’ January 1, 2022
Annual improvements to IFRS Standards 2018–2020 January 1, 2022
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The above standards and interpretations have no significant impact to the Company’s financial condition and operating results based on the Company’s assessment.

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

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

endorsed bythe FSC are as follows:
New Standards, Interpretations and Amendments	Effective date by International Accounting Standards Board
Amendments to IFRS 10 and IAS 28,‘Sale or contribution of assets between an investor and its associate or joint venture’	To be determined by International Accounting Standards
IFRS 17,‘Insurance contracts’	January 1, 2023
Amendments to IFRS 17,'Insurance contracts'	January 1, 2023
Amendment to IFRS 17, 'Initial application of IFRS 17 and IFRS 9 – comparative information'	January 1, 2023
Amendments to IAS 1,‘Classification of liabilities as current or noncurrent’	January 1, 2023
Amendments to IAS 1,‘Disclosure of accounting policies’	January 1, 2023
Amendments to IAS 8,‘Definition of accounting estimates’	January 1, 2023
Amendments to IAS 12,‘Deferred tax related to assets and liabilities arising from a single transaction’	January 1, 2023

The above standards and interpretations have no significant impact to the Company’s financial condition and financial performance based on the Company’s assessment. The quantitative impact will be disclosed when the assessment is complete.

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4. Summary of Significant Accounting Policies

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

(1) Compliance statement

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

(2) Basis of preparation

• A. Except for the following items, these parent company only financial statements have been prepared under the historical cost convention:

• (a) Financial assets and financial liabilities (including derivative instruments) at fair value through profit or loss.

• (b) Financial assets at fair value through other comprehensive income.

• (c) Defined benefit liabilities recognised based on the net amount of pension fund assets less present value of defined benefit obligation.

• B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the“IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Foreign currency translation

Items included in the financial statements of the Company are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The parent company only financial statements are presented in New Taiwan dollars, which is the Company’s functional and presentation currency.

• A. Foreign currency transactions and balances

• (a) Foreign currency transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognised in profit or loss in the period in which they arise.

• (b) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the exchange rates prevailing at the balance sheet date. Exchange differences arising upon re-translation at the balance sheet date are recognised in profit or loss.

• (c) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are retranslated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in profit or loss. Non-monetary assets and liabilities denominated in foreign currencies held at fair value through other comprehensive income are retranslated at the exchange rates prevailing at the balance sheet date; their translation differences are recognised in other comprehensive income. However, nonmonetary assets and liabilities denominated in foreign currencies that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

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• (d) All foreign exchange gains and losses are presented in the statement of comprehensive income within‘other gains and losses’.

• B. Translation of foreign operations

• (a) The operating results and financial position of all associates and jointly controlled entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows:

  • i. Assets and liabilities for each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

  • ii. Income and expenses for each statement of comprehensive income are translated at average exchange rates of that period; and

  • iii. All resulting exchange differences are recognised in other comprehensive income.

• (b) When the foreign operation partially disposed of or sold is an associate or joint arrangement, exchange differences that were recorded in other comprehensive income are proportionately reclassified to profit or loss as part of the gain or loss on sale. In addition, when the Company retains partial interest in the former foreign associate or joint arrangement after losing significant influence over the former foreign associate, or losing joint control of the former joint arrangement, such transactions should be accounted for as disposal of all interest in these foreign operations.

(4) Classification of current and non-current items

• A. Assets that meet one of the following criteria are classified as current assets; otherwise they are classified as non-current assets:

• (a) Assets arising from operating activities that are expected to be realised, or are intended to be sold or consumed within the normal operating cycle;

• (b) Assets held mainly for trading purposes;

• (c) Assets that are expected to be realised within twelve months from the balance sheet date;

• (d) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities more than twelve months after the balance sheet date.

• B. Liabilities that meet one of the following criteria are classified as current liabilities; otherwise they are classified as non-current liabilities:

• (a) Liabilities that are expected to be settled within the normal operating cycle;

• (b) Liabilities arising mainly from trading activities;

• (c) Liabilities that are to be settled within twelve months from the balance sheet date;

• (d) Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

(5) Cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the definition above and are held for the purpose of meeting short-term cash commitments in operations are classified as cash equivalents.

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(6) Financial assets at fair value through profit or loss

• A. Financial assets at fair value through profit or loss are financial assets that are not measured at amortised cost or fair value through other comprehensive income. Financial assets at amortised cost or fair value through other comprehensive income are designated as at fair value through profit or loss at initial recognition when they eliminate or significantly reduce a measurement or recognition inconsistency.

• B. On a regular way purchase or sale basis, financial assets at fair value through profit or loss are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Company measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Company subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.

• D. The Company recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

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

• A. Financial assets at fair value through other comprehensive income comprise equity securities which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognise changes in fair value in other comprehensive income and debt instruments which meet all of the following criteria:

• (a) The objective of the Company’s business model is achieved both by collecting contractual cash flows and selling financial assets; and

• (b) The assets’ contractual cash flows represent solely payments of principal and interest.

• B. On a regular way purchase or sale basis, financial assets at fair value through other comprehensive income are recognised and derecognised using trade date accounting.

• C. At initial recognition, the Company measures the financial assets at fair value plus transaction costs. The Company subsequently measures the financial assets at fair value:

• (a) The changes in fair value of equity investments that were recognised in other comprehensive income are reclassified to retained earnings and are not reclassified to profit or loss following the derecognition of the investment. Dividends are recognised as revenue when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Company and the amount of the dividend can be measured reliably.

• (b) Except for the recognition of impairment loss, interest income and gain or loss on foreign exchange which are recognised in profit or loss, the changes in fair value of debt instruments are taken through other comprehensive income. When the financial asset is derecognised, the cumulative gain or loss previously recognised in other comprehensive income is reclassified from equity to profit or loss.

(8) Accounts and notes receivable

• A. Accounts and notes receivable entitle the Company a legal right to receive consideration in exchange for transferred goods or rendered services.

• B. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

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(9) Impairment of financial assets

For debt instruments measured at fair value through other comprehensive income including accounts receivable or contract assets that have a significant financing component, at each reporting date, the Company recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Company recognises the impairment provision for lifetime ECLs.

(10) Derecognition of financial assets

The Company derecognises a financial asset when one of the following conditions is met:

• A. The contractual rights to receive the cash flows from the financial asset expire.

• B. The contractual rights to receive cash flows of the financial asset have been transferred and the Company has transferred substantially all risks and rewards of ownership of the financial asset.

• C. The contractual rights to receive cash flows of the financial asset have been transferred ; however, the Company has not retained control of the financial asset.

(11) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost is determined using the weighted-average method. The cost of finished goods and work in process comprises raw materials, direct labor, other direct costs and related production overheads (allocated based on normal operating capacity). It excludes borrowing costs. The item by item approach is used in applying the lower of cost and net realisable value. Net realisable value is the estimated selling price in the ordinary course of business, less the estimated cost of completion and applicable variable selling expenses.

• (12) Investments accounted for using equity method/subsidiaries and associates

• A. Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

• B. Unrealised profit (loss) occurred from the transactions between the Company and subsidiaries have been offset. The accounting policies of the subsidiaries have been adjusted to comply with the Company’s accounting policies.

• C. The Company’s share of its subsidiaries’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in a subsidiary equals or exceeds its interest in the subsidiary, the Company continues to recognise losses proportionate to its ownership.

• D. If changes in the Company’s shares in subsidiaries do not result in loss in control (transactions with non-controlling interest), transactions shall be considered as equity transactions, which are transactions between owners. Difference of adjustment of non-controlling interest and fair value of consideration paid or received is recognised in equity.

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• E. Upon loss of significant influence over a subsidiary, the Company remeasures any investment retained in the former subsidiary at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss. The amount previously recognised in other comprehensive income in relation to the subsidiary is reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. When the Company loses significant influence over the subsidiary, the profit or loss is reclassified from equity to profit or loss.

• F. Associates are all entities over which the Company has significant influence but not control. In general, it is presumed that the investor has significant influence, if an investor holds, directly or indirectly 20 percent or more of the voting power of the investee. Investments in associates are accounted for using the equity method and are initially recognised at cost.

• G. The Company’s share of its associates’ post-acquisition profits or losses is recognised in profit or loss, and its share of post-acquisition movements in other comprehensive income is recognised in other comprehensive income. When the Company’s share of losses in an associate equals or exceeds its interest in the associate (including any other unsecured receivables), the Company does not recognise further losses, unless it has incurred statutory/constructive obligations or made payments on behalf of the associate.

• H. When changes in an associate’s equity do not arise from profit or loss or other comprehensive income of the associate and such changes do not affect the Company’s ownership percentage of the associate, the Company recognises the Company’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.

• I. Unrealised gains on transactions between the Company and its associates are eliminated to the extent of the Company’s interest in the associates. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Accounting policies of associates have been adjusted where necessary to ensure consistency with the policies adopted by the Company.

• J. In the case that an associate issues new shares and the Company does not subscribe or acquire new shares proportionately, which results in a change in the Company’s ownership percentage of the associate but maintains significant influence on the associate, then ‘capital surplus’ and ‘ investments accounted for under the equity method’ shall be adjusted for the increase or decrease of its share of equity interest. If the above condition causes a decrease in the Company’s ownership percentage of the associate, in addition to the above adjustment, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately on the same basis as would be required if the relevant assets or liabilities were disposed of.

• K. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate, are reclassified to profit or loss, on the same basis as would be required if the relevant assets or liabilities were disposed of. If it retains significant influence over this associate, the amounts previously recognised in other comprehensive income in relation to the associate are reclassified to profit or loss proportionately in accordance with the aforementioned approach.

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• L. When the Company disposes its investment in an associate and loses significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss. If it retains significant influence over this associate, the amounts previously recognised as capital surplus in relation to the associate are transferred to profit or loss proportionately.

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

(13) Property, plant and equipment

• A. Property, plant and equipment are initially recorded at cost. Borrowing costs incurred during the construction period are capitalised.

• B. Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.

• C. Land is not depreciated. Other property, plant and equipment apply cost model and are depreciated using the straight-line method to allocate their cost over their estimated useful lives. Each part of an item of property, plant, and equipment with a cost that is significant in relation to the total cost of the item must be depreciated separately.

• D. The assets’ residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each balance sheet date. If expectations for the assets’ residual values and useful lives differ from previous estimates or the patterns of consumption of the assets’ future economic benefits embodied in the assets have changed significantly, any change is accounted for as a change in estimate under IAS 8, ‘Accounting Policies, Changes in Accounting Estimates and Errors’, from the date of the change. The estimated useful lives of property, plant and equipment are as follows:

Buildings 15 ～ 50 years Machinery and equipment 5 ～ 15 years Transportation equipment 3 ～ 15 years Other equipment 3 ～ 15 years

(14) Leasing arrangements (lessee) － right-of-use assets/lease liabilities

• A. Leases are recognised as a right-of-use asset and a corresponding lease liability at the date at which the leased asset is available for use by the Company. For short-term leases or leases of low value assets, lease payments are recognised as an expense on a straight-line basis over the lease term.

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• B. Lease liabilities include the net present value of the remaining lease payments at the commencement date, discounted using the incremental borrowing interest rate. Lease payments are comprised of the following:

• (a) Fixed payments, less any lease incentives receivable;

• (b) Variable lease payments that depend on an index or a rate;

• (c) Amounts expected to be payable by the lessee under residual value guarantees;

• (d) The exercise price of a purchase option, if the lessee is reasonably certain to exercise that option; and

• (e) Payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.

The Company subsequently measures the lease liability at amortised cost using the interest method and recognises interest expense over the lease term. The lease liability is remeasured and the amount of remeasurement is recognised as an adjustment to the right-of-use asset when there are changes in the lease term or lease payments and such changes do not arise from contract modifications.

• C. At the commencement date, the right-of-use asset is stated at cost comprising the following:

• (a) The amount of the initial measurement of lease liability;

• (b) Any lease payments made at or before the commencement date;

• (c) Any initial direct costs incurred by the lessee; and

• (d) An estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

The right-of-use asset is measured subsequently using the cost model and is depreciated from the commencement date to the earlier of the end of the asset’s useful life or the end of the lease term.

When the lease liability is remeasured, the amount of remeasurement is recognised as an adjustment to the right-of-use asset.

(15) Impairment of non-financial assets

The Company assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell or value in use. Except for goodwill, when the circumstances or reasons for recognising impairment loss for an asset in prior years no longer exist or diminish, the impairment loss is reversed. The increased carrying amount due to reversal should not be more than what the depreciated or amortized historical cost would have been if the impairment had not been recognised.

(16) Borrowings

Borrowings comprise long-term and short-term bank borrowings and other long-term and short-term loans. Borrowings are recognised initially at fair value, net of transaction costs incurred. Borrowings are subsequently stated at amortised cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognised in profit or loss over the period of the borrowings using the effective interest method.

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(17) Notes and accounts payable

• A. Accounts payable are liabilities for purchases of raw materials, goods or services and notes payable are those resulting from operating and non-operating activities.

• B. The short-term notes and accounts payable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial.

(18) Derecognition of financial liabilities

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

(19) Offsetting financial instruments

Financial assets and liabilities are offset and reported in the net amount in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

(20) Non-hedging derivatives

Non-hedging derivatives are initially recognised at fair value on the date a derivative contract is entered into and recorded as financial assets or financial liabilities at fair value through profit or loss. They are subsequently remeasured at fair value and the gains or losses are recognised in profit or loss.

(21) Employee benefits

• A. Short-term employee benefits

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in respect of service rendered by employees in a period and should be recognised as expenses in that period when the employees render service.

• B. Pensions

• (a) Defined contribution plan

For defined contribution plan, the contributions are recognised as pension expenses when they are due on an accrual basis. Prepaid contributions are recognised as an asset to the extent of a cash refund or a reduction in the future payments.

• (b) Defined benefit plan

• i. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Company in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plan is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of highquality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Company uses interest rates of government bonds (at the balance sheet date) instead.

• ii. Remeasurements arising on defined benefit plan are recognised in other comprehensive income in the period in which they arise and are recorded as other equity.

• iii. Past service costs are recognised immediately in profit or loss.

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• C. Employees’, directors’ and supervisors’ remuneration

  • Employees’ remuneration and directors’ and supervisors’ remuneration are recognised as expense and liability, provided that such recognition is required under legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in estimates.

• (22) Income tax

• A. The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or items recognised directly in equity, in which cases the tax is recognised in other comprehensive income or equity.

• B. The current income tax expense is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the countries where the Company and its subsidiaries operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the stockholders resolve to retain the earnings.

• C. Deferred income tax is recognised, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. However, the deferred income tax is not accounted for if it arises from initial recognition of goodwill or of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither accounting nor taxable profit or loss. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Company and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred income tax is determined using tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred income tax liability is settled.

• D. Deferred income tax assets are recognised only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilised. At each balance sheet date, unrecognised and recognised deferred income tax assets are reassessed.

• E. Current income tax assets and liabilities are offset and the net amount reported in the balance sheet when there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset on the balance sheet when the entity has the legally enforceable right to offset current tax assets against current tax liabilities and they are levied by the same taxation authority on either the same entity or different entities that intend to settle on a net basis or realise the asset and settle the liability simultaneously.

• F. A deferred tax asset shall be recognised for the carryforward of unused tax credits resulting from acquisitions of equipment or technology and equity investments to the extent that it is possible that future taxable profit will be available against which the unused tax credits can be utilised.

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(23) Treasury shares

• Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

(24) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are approved by the Company’s shareholders. Cash dividends are recorded as liabilities; stock dividends are recorded as stock dividends to be distributed and are reclassified to ordinary shares on the effective date of new shares issuance.

• (25) Revenue recognition

Sales of goods

• A. The Company manufactures and sells a variety of petrochemical products, including the spinning, weaving, dyeing and finishing of rayon and nylon fiber. Sales are recognised when control of the products has transferred, being when the products are delivered to the customer, the customer has full discretion over the channel and price to sell the products, and there is no unfulfilled obligation that could affect the customer’s acceptance of the products. Delivery occurs when the products have been shipped to the specific location, the risks of obsolescence and loss have been transferred to the wholesaler, and either the wholesaler has accepted the products in accordance with the sales contract, or the Company has objective evidence that all criteria for acceptance have been satisfied.

• B. The amount of sales revenue recognised is equal to the contract price net of volume discounts and sales discounts and allowances. Volume discounts and sales discounts and allowances are estimated based on historical information, and a refund liability is recognised for expected volume discounts and sales discounts and allowances payable to customers in relation to sales made until the end of the reporting period. The sales usually are made with a credit term of 30 to 120 days. As the time interval between the transfer of committed goods or service and the payment of customer does not exceed one year, the Company does not adjust the transaction price to reflect the time value of money.

• C. A receivable is recognised when the goods are delivered as this is the point in time that the consideration is unconditional because only the passage of time is required before the payment is due.

• Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

The preparation of these parent company only financial statements requires management to make critical judgements in applying the Company’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates may differ from the actual results and are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year; and the related information is addressed below:

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• (1) Critical judgements in applying the Company’s accounting policies None.

(2) Critical accounting estimates and assumptions

• A. Impairment assessment of accounts receivable

In the process of assessing impairment of accounts receivable, the Company must use judgements and assumptions to determine the collectability of accounts receivable. The collectability is affected by various factors: customers’ financial conditions, the Company’s internal credit ratings, historical experience, etc. When sales are not expected to be collected, the Company recognises a specific allowance for doubtful receivables after the assessment. The assumptions and estimates of loss allowance provided for accounts receivable are based on concerning future events as that on the balance sheet date. Assumptions and estimates may differ from the actual results which may result in material adjustments.

• B. Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Company must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Company evaluates the amounts of normal inventory consumption, obsolete inventories or inventories without market selling value on balance sheet date, and writes down the cost of inventories to the net realisable value. Such an evaluation of inventories is principally based on the demand for the products within the specified period in the future. Therefore, there might be material changes to the evaluation. As of December 31, 2021, the carrying amount of inventories was $21,039,301.

6. Details of Significant Accounts

(1) Cash and cash equivalents

Cash and cash equivalents
Cash on hand and petty cash Checking accounts and demand deposits Cash equivalents Time deposits	December31,2021 312 $ 2,790,854 - 2,791,166 $	December31,2020
		336 $ 2,849,334 855,595
		3,705,265 $

• A. The Company transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote. Loss allowance is measured using 12-month expected credit losses. For the years ended December 31, 2021 and 2020, the Company did not recognise any loss allowance.

• B. As of December 31, 2021, the capital repatriated by the Company amounting to USD 35,795 thousand (equivalent to $991,166) that failed to meet the definition of cash and cash equivalents under the IAS 7, ‘Statement of Cash Flows’ due to the restrictions under “The Management, Utilisation, and Taxation of Repatriated Offshore Funds Act” was classified as other financial assets, and listed under other non-current assets.

• C. The Company has no cash and cash equivalents pledged to others.

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December 31, 2021 December 31, 2020

(2) Financial assets at fair value through profit or loss

Current item: Financial assets mandatorily measured at fair value through profit or loss Fund $ 4,085,299 $ 4,085,299 Valuation adjustment ( 292,263) ( 196,789) $ 3,793,036 $ 3,888,510

• A. Amounts recognised in profit or loss in relation to financial assets at fair value through profit or loss are listed below:

For the years ended December 31, 2021 2020 Financial assets mandatorily measured at fair value through profit or loss Fund ($ 95,474) ($ 155,458)

• B. The Company did not pledge financial assets at fair value through profit or loss to others as collateral.

• C. Information relating to credit risk of financial assets at fair value through profit or loss is provided in Note 12(3).

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

Current items: Equity instruments Listed stocks Unlisted stocks Valuation adjustment Non-current items: Equity instruments Unlisted stocks Valuation adjustment	December31,2021 December31,2020 23,864,654 $ 23,864,654 $ 725,839 725,839 90,675,741 83,799,612 115,266,234 $ 108,390,105 $ 20,188,503 $ 20,188,503 $ 11,699,001 1,170,812) ( 31,887,504 $ 19,017,691 $

• A. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income	2021 2020 19,745,942 $ 15,129,232) ($ For theyears ended December31,

~27~

• B. As at December 31, 2021 and 2020, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at fair value through other comprehensive income held by the Company were $147,153,738 and $127,407,796, respectively.

• C. The Company did not pledge financial assets at fair value through other comprehensive income to others as collateral.

• D. Information relating to credit risk of financial assets at fair value through other comprehensive income is provided in Note 12(3).

(4) Notes and accounts receivable

income is provided in Note 12(3). Notes and accounts receivable
		December31,2021		December31,2020
Notes receivable		$	258,148	$	266,891
Less: Allowance for uncollectible accounts			-		-
		$	258,148	$	266,891
Notes receivable - related parties		$	318,393	$	127,610
Accounts receivable		$	7,576,992	$	5,868,792
Less: Allowance for uncollectible accounts	(		72,076)	(	72,170)
		$	7,504,916	$	5,796,622
Accounts receivable - related parties		$	17,617,929	$	12,181,977

Accounts receivable - related parties

• A. As of December 31, 2021 and 2020, accounts receivable and notes receivable were all from contracts with customers. As of January 1, 2020, the balance of receivables from contracts with customers amounted to $18,937,559.

• B. As at December 31, 2021 and 2020, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Company’s notes receivable were $576,541 and $394,501 and accounts receivable were $25,122,845 and $17,978,599, respectively.

• C. Information relating to credit risk is provided in Note 12(3).

(5) Inventories

nventories
Raw materials Materials Work in progress Finished goods Other inventory		December 31, 2021
	Cost 8,299,391 $ 3,338,637 2,431,917 7,940,209 4,965 22,015,119 $	Allowance for valuation loss 67,472) ($ 544,517) ( 182,162) ( 181,667) ( - 975,818) ($	Book value
			8,231,919 $ 2,794,120 2,249,755 7,758,542 4,965
			21,039,301 $

~28~

			December31,2020	December31,2020
				Allowance for
		Cost		valuation loss		Bookvalue
Raw materials	$	4,655,511	($	1,373)	$	4,654,138
Materials		3,491,570	(	559,517)		2,932,053
Work in progress		1,552,918	(	1)		1,552,917
Finished goods		4,106,269	(	5,535)		4,100,734
Other inventory		3,703		-		3,703
	$	13,809,971	($	566,426)	$	13,243,545

Expense and loss incurred on inventories for the years ended December 31, 2021 and 2020 were as follows:

Cost of inventories sold Loss (gain) on inventory valuation (Note) Idle capacity (including annual survey and work stoppage) Others	2021 2020 213,797,020 $ 145,823,787 $ 409,392 125,208) ( 850,301 1,789,759 159,281 223,329 215,215,994 $ 147,711,667 $ For the years ended December 31,

Note: As the market value of petroleum related products decreased for the year ended December 31, 2021, the Company recognised related allowance for inventory valuation losses after assessment. For the year ended December 31, 2020, disposal of excess inventory resulted in gain from price recovery of inventory.

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(6) Investments accounted for using equity method

nvestments accounted for using equity method
December31,2021 Subsidiaries FCFC Investment Corp. (Cayman) 67,879,918 $ Formosa Taffeta Co., Ltd. 22,859,755 Formosa Industries Corp., Vietnam 7,314,049 Formosa Idemitsu Petrochemical Corp. 1,744,062 Formosa INEOS Chemicals Corp. 3,227,258 Formosa Biomedical Technology Corp. 3,477,997 Formosa Carpet Corp. 187,404 Chia-Nan Enterprise Corp. 339,591 Tah Shin Spinning Corp. - Associates Formosa Petrochemical Corp. 86,080,723 Mai Liao Power Corp. 12,819,210 Formosa Heavy Industries Corp. 7,694,115 Formosa Resourse Corp. 6,860,325 Formosa Synthetic Rubber Corp. (Hong Kong) 2,182,064 FG INC. 2,993,906 Formosa Plastics Transport Corp. 1,250,682 Formosa Group (CAYMAN) Corp. 662,099 Formosa Environmental Technology Corp. 228,831 Formosa Fairway Corp. 49,214 Formosa Construction Corp. 593,734 Hwa Ya Science Park Management Consulting Co. 3,195 Guo Su Plastic Industry Co., Ltd. 48,469 228,496,601 $	December31,2020
	61,014,998 $ 22,556,331 8,011,716 1,330,780 1,567,014 1,885,663 198,152 353,298 738,754 74,133,567 12,414,449 7,102,774 6,169,287 2,308,051 3,117,242 1,177,559 649,229 227,350 68,247 568,354 3,029 -
	205,595,844 $

• A. The related information on subsidiaries is provided in Note 4(3) of consolidated financial statements for 2021.

• B. After the Company acquired an additional equity interest in Chia-Nan Enterprise Corp. on September 24, 2020, Chia-Nan Enterprise Corp. became the Company’s consolidated subsidiary. Details are provided in Note 4(3) of the Company's consolidated financial statements.

• C. On May 7, 2020, the Board of Directors of the Company resolved to dissolve and liquidate the subsidiary, FCFC International Limited (Cayman). The equity interest of Formosa Ha Tinh (Cayman) Limited which was formerly held by FCFC International Limited (Cayman) was transferred into non-current financial assets at fair value through other comprehensive income after the combination.

• D. The investments accounted for using equity method were based on the investees’ audited financial statements for the years ended December 31, 2021 and 2020.

~30~

• E. The financial information of the associate that is material to the Company is as follows:

Shareholding ratio

Principal place December Company name of business 31, 2021 Formosa Petrochemical Corp. Taiwan 24.15%	December 31, 2020 24.15%	Nature of Method of relationship measurement
		Investments accounted for using equity method Equity method

• F. The summarised financial information of the associate that is material to the Company is shown below:

Balance Sheet

below: Balance Sheet
			FormosaPetrochemicalCorp.
		December31,2021		December31,2020
Current assets		$	286,706,644	$	212,621,640
Non-current assets			162,099,170		157,332,180
Current liabilities	(		56,639,797)	(	27,677,805)
Non-current liabilities	(		34,751,549)	(	34,174,656)
Total net assets		$	357,414,468	$	308,101,359
Share in associate's net assets		$	86,315,594	$	74,406,478
Unrealised gain from sales of upstream transactions eliminations	(		124,152)	(	162,192)
Net differences in share capital	(		110,719)	(	110,719)
Carrying amount of the associate		$	86,080,723	$	74,133,567
Statement of comprehensive income
			FormosaPetrochemicalCorp.
			Forthe years endedDecember31,
			2021		2020
Revenue		$	617,439,029	$	413,042,534
Profit for the year from continuing operations		$	49,401,403	$	7,429,610
Other comprehensive income (loss), net of tax			5,530,189	(	1,926,787)
Total comprehensive income		$	54,931,592	$	5,502,823
Dividends received from associates		$	1,357,472	$	6,672,319

G. The carrying amount of the Company’s interests in all individually immaterial associates and the Company’s share of the operating results are summarised below:

As of December 31, 2021 and 2020, the carrying amount of the Company’s individually immaterial associates amounted to $35,385,844 and $33,805,571, respectively.

. Profit for the year from continuing operations Other comprehensive income (loss), net of tax Total comprehensive income	2021 2020 909,606 $ 6,722,122 $ 3,289,015 3,835,199) ( 4,198,621 $ 2,886,923 $ Forthe years endedDecember31,

~31~

• H. The fair value of the Company’s associate which has quoted market price is as follows:

• December 31, 2021 December 31, 2020

• Formosa Petrochemical Corp. $ 220,646,701 $ 229,619,820

• I. The Board of Directors resolved to invest USD 24,600 thousand and USD 22,500 thousand, equivalent to 30% ownership, in FG INC. on March 13, 2020 and March 15, 2019, respectively.

• J. On November 6, 2020, the Board of Directors of the Company resolved to increase its investment in Formosa Plastics Construction Corporation in the amount of $500,000, and the shareholding ratio was 33.33%.

• K. On December 13, 2019, the Board of Directors resolved to increase its capital in Formosa Synthetic Rubber Corp. amounting to $46,000, equivalent to a 33.33% equity interest. On April 10, 2020, the shareholders of Formosa Synthetic Rubber Corp. during their meeting resolved to go into liquidation, and the liquidation was completed on December 28, 2020.

• L. On August 25, 2020, Tah Shin Spinning Corporation has implemented the liquidation procedure, and the dissolution and liquidation were completed on July 6, 2021.

• M. On December 8, 2021, the competent authority of the Group resolved to invest $48,468 in Guo Su Plastic Industry Company, and the shareholding ratio was 32.89%.

• N. The Company received cash dividends of $3,870,511and $8,946,930 for the years ended December 31, 2021 and 2020, respectively, from its investments accounted for using equity method. The cash dividends are recorded as a deduction from the Company’s investments accounted for using equity method.

• O. As of December 31, 2021 and 2020, no equity investment held by the Company was pledged to others.

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(7) Property, plant and equipment

Property, plant and equipment
Construction in progress and Machinery Transportation equipment to Land Buildings and equipment and equipment be inspected Total Cost 9,522,375 $ 19,364,542 $ 180,450,547 $ 4,403,532 $ 9,465,871 $ 223,206,867 $ Accumulated depreciation and impairment - 14,587,357) ( 150,579,918) ( 3,479,410) ( - 168,646,685) ( 9,522,375 $ 4,777,185 $ 29,870,629 $ 924,122 $ 9,465,871 $ 54,560,182 $ Opening net book amount 9,522,375 $ 4,777,185 $ 29,870,629 $ 924,122 $ 9,465,871 $ 54,560,182 $ Additions - 370,010 855,115 66,603 6,561,093 7,852,821 Disposals 2,170) ( - 6,466) ( 82) ( - 8,718) ( Reclassifications - 264,761 5,874,560 174,170 6,313,908) ( 417) ( Depreciation charge - 628,034) ( 5,108,326) ( 215,902) ( - 5,952,262) ( Closing net book amount 9,520,205 $ 4,783,922 $ 31,485,512 $ 948,911 $ 9,713,056 $ 56,451,606 $ Cost 9,520,205 $ 19,919,650 $ 186,091,564 $ 4,522,676 $ 9,713,056 $ 229,767,151 $ Accumulated depreciation and impairment - 15,135,728) ( 154,606,052) ( 3,573,765) ( - 173,315,545) ( 9,520,205 $ 4,783,922 $ 31,485,512 $ 948,911 $ 9,713,056 $ 56,451,606 $ At January 1, 2021 2021 At December 31, 2021 Construction in progress and Machinery Transportation equipment to Land Buildings and equipment and equipment be inspected Total At January 1, 2020 Cost 9,525,020 $ 19,526,792 $ 175,961,175 $ 4,198,462 $ 8,354,559 $ 217,566,008 $ Accumulated depreciation and impairment - 14,245,996) ( 146,647,605) ( 3,330,015) ( - 164,223,616) ( 9,525,020 $ 5,280,796 $ 29,313,570 $ 868,447 $ 8,354,559 $ 53,342,392 $ 2020 Opening net book amount 9,525,020 $ 5,280,796 $ 29,313,570 $ 868,447 $ 8,354,559 $ 53,342,392 $ Additions - - 177,127 46,533 6,910,913 7,134,573 Disposals 2,645) ( 52,862) ( 215,127) ( 148) ( - 270,782) ( Reclassifications - 162,767 5,453,211 180,656 5,799,601) ( 2,967) ( Depreciation charge - 613,516) ( 4,858,152) ( 171,366) ( - 5,643,034) ( Closing net book amount 9,522,375 $ 4,777,185 $ 29,870,629 $ 924,122 $ 9,465,871 $ 54,560,182 $ At December 31, 2020 Cost 9,522,375 $ 19,364,542 $ 180,450,547 $ 4,403,532 $ 9,465,871 $ 223,206,867 $ Accumulated depreciation and impairment - 14,587,357) ( 150,579,918) ( 3,479,410) ( - 168,646,685) ( 9,522,375 $ 4,777,185 $ 29,870,629 $ 924,122 $ 9,465,871 $ 54,560,182 $	Total
Cost Accumulated depreciation and impairment
	54,560,182 $

~33~

• A. Amount of borrowing costs capitalised as part of property, plant and equipment and the range of the interest rates for such capitalisation are as follows:

	For the years ended December 31,	For the years ended December 31,
	2021	2020
Amount capitalised	81,089 $	96,149 $
Interest rate	0.95%~1.00%	0.98%~1.19%

• B. Under the regulations, land may only be owned by individuals. Thus, the Company has already obtained ownership of the agricultural land for future plant expansion which was acquired by the Company under the name of a third party, who has pledged the full amount to the Company. As of December 31, 2021 and 2020, the pledged amount were $12,594 and $14,693, respectively.

• C. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.

－ (8) Leasing arrangements lessee

• A. The Company leases various assets including land and buildings. Rental contracts are typically made for periods of 2 to 15 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes.

• B. The carrying amount of right-of-use assets and the depreciation charge are as follows:

The carrying amount of right-of-use assets and the	depreciation charge are as follows:	as follows:
Land Buildings Land Buildings	December 31, 2021 December 31, 2020 Carrying amount Carrying amount 18,577 $ 20,442 $ 2,891 6,746 21,468 $ 27,188 $ 2021 2020 Depreciationcharge Depreciationcharge 1,942 $ 1,931 $ 3,855 3,860 5,797 $ 5,791 $ For theyears ended December31,	December 31, 2020
		Carrying amount
		20,442 $ 6,746
		27,188 $
		Depreciationcharge
		1,931 $ 3,860
		5,791 $

• C. For the years ended December 31, 2021 and 2020, the additions to right-of use assets were $77 and $7,710, respectively.

• D. The information on profit and loss accounts relating to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on variable lease payments	Forthe years endedDecember31,	Forthe years endedDecember31,
	2021 353 $ 5,095 4,174	2020
		350 $ 4,872 3,291

• E. For the years ended December 31, 2021 and 2020, the Company’s total cash outflow for leases were $15,302 and $14,185, respectively.

~34~

(9) Short-term loans and short-term notes and bills payable

	Type of loans	December31,2021	December31,2021	December31,2021	Interest	rate range	Collateral
	Unsecured loans		$	8,884,300	0.72%～0.86%		None
	Short-term notes and bills payable		$	17,500,000	0.28%～0.39%		None
	Short-term notes and bills payable discount	(		3,316)
	Net short-term notes and bills payable		$	17,496,684
	Type of loans	December31,2020			Interest	rate range	Collateral
	Unsecured loans		$	13,763,200	0.75%～0.86%		None
	Short-term notes and bills payable		$	15,600,000	0.24%～0.25%		None
	Short-term notes and bills payable discount	(		3,245)
	Net short-term notes and bills payable		$	15,596,755
	Bonds payable
				December31,2021		December31,2020
	Domestic unsecured
	nonconvertible corporate
	bonds			50,050,000 $		$	42,100,000
	Less: Current portion			4,550,000) (		(	2,050,000)
				45,500,000 $		$	40,050,000

(10) Bonds payable

~35~

The terms of domestic unsecured nonconvertible corporate bonds were as follows:

Issuance Maturity Yield Description date date rate(%) 2012 Second issued domestic unsecured nonconvertible corporate bonds - C 2012.12.7 2021.12.7 ~ 2022.12.7 1.51 Third issued domestic unsecured nonconvertible corporate bonds - B 2013.1.22 2022.1.22 ~ 2023.1.22 1.50 2013 First issued domestic unsecured nonconvertible corporate bonds - C 2013.7.8 2022.7.8 ~ 2023.7.8 1.52 Second issued domestic unsecured nonconvertible corporate bonds 2014.1.17 2025.1.17 ~ 2026.1.17 2.03 2014 First issued domestic unsecured nonconvertible corporate bonds - A 2014.7.4 2023.7.4 ~ 2024.7.4 1.81 First issued domestic unsecured nonconvertible corporate bonds - B 2014.7.4 2028.7.4 ~ 2029.7.4 2.03 2019 First issued domestic unsecured nonconvertible corporate bonds - A 2019.5.13 2023.5.13 ~ 2024.5.13 0.75	Issued principal amount 4,100,000 $ 2,200,000 2,800,000 10,000,000 1,400,000 4,600,000 $ 3,300,000	December31,2021 2,050,000 $ 2,200,000 2,800,000 10,000,000 1,400,000 4,600,000 3,300,000	December31,2020 Note 4,100,000 $ Serial bonds, to be settled 50%, 50% 2,200,000 Serial bonds, to be settled 50%, 50% 2,800,000 Serial bonds, to be settled 50%, 50% 10,000,000 Serial bonds, to be settled 50%, 50% 1,400,000 Serial bonds, to be settled 50%, 50% 4,600,000 Serial bonds, to be settled 50%, 50% 3,300,000 Serial bonds, to be settled 50%, 50%	Note

~36~

Issuance Maturity Yield Description date date rate(%) 2019 First issued domestic unsecured nonconvertible corporate bonds - B 2019.5.13 2025.5.13 ~ 2026.5.13 0.83 First issued domestic unsecured nonconvertible corporate bonds - C 2019.5.13 2028.5.13 ~ 2029.5.13 0.93 2020 First issued domestic unsecured nonconvertible corporate bonds - A 2020.9.3 2024.9.3 ~ 2025.9.3 0.52 First issued domestic unsecured nonconvertible corporate bonds - B 2020.9.3 2026.9.3 ~ 2027.9.3 0.60 First issued domestic unsecured nonconvertible corporate bonds - C 2020.9.3 2029.9.3 ~ 2030.9.3 0.67 2021 First issued domestic unsecured nonconvertible corporate bonds - A 2021.5.10 2025.5.10 ~ 2026.5.10 0.48 First issued domestic unsecured nonconvertible corporate bonds - B 2021.5.10 2027.5.10 ~ 2028.5.10 0.56 Less: Current portion of bonds payable	Issued principal amount 3,000,000 $ 700,000 2,900,000 5,200,000 1,900,000 6,000,000 4,000,000	December31,2021 December31,2020 Note 3,000,000 $ 3,000,000 $ Serial bonds, to be settled 50%, 50% 700,000 700,000 Serial bonds, to be settled 50%, 50% 2,900,000 2,900,000 Serial bonds, to be settled 50%, 50% 5,200,000 5,200,000 Serial bonds, to be settled 50%, 50% 1,900,000 1,900,000 Serial bonds, to be settled 50%, 50% 6,000,000 - Serial bonds, to be settled 50%, 50% 4,000,000 - Serial bonds, to be settled 50%, 50% 50,050,000 42,100,000 (4,550,000) 2,050,000) ( 45,500,000 $ 40,050,000 $	Note

~37~

(11) Pensions

• A. (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Act, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Act. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions for the deficit by next March.

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

		December	31,2021		December	31, 2020
Present value of defined benefit obligations		$	7,646,565		$	7,566,690
Fair value of plan assets	(		2,768,109)	(		2,738,052)
Net defined benefit liability		$	4,878,456		$	4,828,638

• (c) Movements in net defined benefit liabilities are as follows:

		Present value of	Present value of
		defined benefit			Fair value of			Net defined
			obligations		planassets		benefitliability
Year ended December 31, 2021
Balance at January 1		$	7,566,690	($	2,738,052)		$	4,828,638
Current service cost			61,953		-			61,953
Interest expense (income)			75,667	(	27,646)			48,021
			7,704,310	(	2,765,698)			4,938,612
Remeasurements:
Return on plan assets			-	(	8,413)	(		8,413)
Change in financial assumptions			221,506		-			221,506
Experience adjustments			136,493		-			136,493
			357,999	(	8,413)			349,586
Pension fund contribution			-	(	49,409)	(		49,409)
Paid pension	(		415,744)		55,411	(		360,333)
	(		415,744)		6,002	(		409,742)
Balance at December 31		$	7,646,565	($	2,768,109)		$	4,878,456

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==> picture [445 x 252] intentionally omitted <==

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

Present value of
defined benefit Fair value of Net defined
obligations plan assets benefit liability
Year ended December 31, 2020
Balance at January 1 $ 8,559,491 ($ 2,631,007) $ 5,928,484
Current service cost 77,684 - 77,684
Interest expense (income) 85,595 ( 26,603) 58,992
8,722,770 ( 2,657,610) 6,065,160
Remeasurements:
-
Return on plan assets ( 82,930) ( 82,930)
Experience adjustments ( 222,952) - ( 222,952)
( 222,952) ( 82,930) ( 305,882)
Pension fund contribution - ( 51,455) ( 51,455)
Paid pension ( 933,128) 53,943 ( 879,185)
( 933,128) 2,488 ( 930,640)
Balance at December 31 $ 7,566,690 ($ 2,738,052) $ 4,828,638
----- End of picture text -----

• (d) The Bank of Taiwan was commissioned to manage the Fund of the Company’s defined benefit pension plan in accordance with the Fund’s annual investment and utilisation plan and the “Regulations for Revenues, Expenditures, Safeguard and Utilisation of the Labor Retirement Fund” (Article 6: The scope of utilisation for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-thecounter, or private placement equity securities, investment in domestic or foreign real estate securitization products, etc.). With regard to the utilisation of the Fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorised by the Regulator. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2021 and 2020 is given in the Annual Labor Retirement Fund Utilisation Report announced by the government.

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

The principal actuarial assumptions used were	as follows:
Discount rate Future salary increases	Year ended December31,2021 0.50% 2.85%	Year ended December31,2020
		1.00%
		2.85%

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with the Taiwan Annuity Table and experience.

~39~

Because the main actuarial assumption changed, the present value of defined benefit obligation is affected. The analysis is as follows:

Discount rate Future salary increases Increase 0.25% Decrease 0.25% Increase 0.35% Decrease 0.35% December 31, 2021 Effect on present value of defined benefit obligation ($ 110,753) $ 114,526 $ 160,771 ($ 154,644) December 31, 2020 Effect on present value of defined benefit obligation ($ 117,947) $ 122,258 $ 174,090 ($ 166,875) The sensitivity analysis above was arrived at based on one assumption which changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The method of analysing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The method and assumption of analysing sensitivity is the same with last year.

  - (f) Expected contributions to the defined benefit pension plan of the Company for the year ending December 31, 2022 are $50,901.

• B. (a) From July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.

  • (b) The pension costs under the defined contribution pension plan of the Company for the years ended December 31, 2021 and 2020 were $159,784 and $161,458, respectively.

• (12) Capital stock

• A. As of December 31, 2021, the authorised and paid-in capital was $58,611,863, consisting of 5,861,186 thousand shares with a par value of $10 per share. All proceeds from shares issued have been collected.

• B. Changes in the treasury stocks for the years ended December 31, 2021 and 2020 are set forth below:

For the year ended December 31, 2021

Reason for reacquisition Subsidiary Parent company shares held by subsidiaries reclassified from long-term investment to treasury stock Formosa Taffeta Co., Ltd.		Beginning shares 12,169,610	Additions -	Disposal -	Ending shares
					12,169,610

~40~

==> picture [461 x 148] intentionally omitted <==

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

For the year ended December 31, 2020
Reason for Beginning Ending
reacquisition Subsidiary shares Additions Disposal shares
Parent company
shares held by
subsidiaries
reclassified from
long-term Formosa
investment to Taffeta Co.,
treasury stock Ltd. 12,169,610 - - 12,169,610
----- End of picture text -----

• C. The market value of treasury stocks was $80.8 and $84.7 (in dollars) per share at December 31, 2021 and 2020, respectively.

• D. The above treasury stocks of the parent company were acquired by subsidiaries.

• (13) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Act requires that the amount of capital surplus to be capitalised mentioned above should not exceed 10% of the paid in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

At January 1, 2021 Dividends allocated to subsidiaries Effect from disposal of net stockholding of associates recognised under the equity method Changes in ownership interests in subsidiaries Expired cash dividends reclassified to capital surplus Overdue dividends are transferred to capital surplus At December 31, 2021				For theyear ended	For theyear ended	For theyear ended	For theyear ended	December31,2021	December31,2021	December31,2021	Others 228,701 $ - - - 682) ( 12,366 240,385 $
		Share premium		Conversion premium of corporate bonds		Treasury share transactions		Effect from net stockholding of associates recognised using equity method		Difference between stock price and book value for disposal of subsidiaries 163 $ - - - - - 163 $
		2,710,554 $ - - - - - 2,710,554 $		5,514,032 $ - - - - - 5,514,032 $		336,034 $ 11,379 - 820 - - 348,233 $		378,153 $ - 442 1,037 - - 379,632 $

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At January 1, 2020 Dividends allocated to subsidiaries Effect from disposal of net stockholding of associates recognised under the equity method Changes in ownership interests in subsidiaries Expired cash dividends reclassified to capital surplus Overdue dividends are transferred to capital surplus At December 31, 2020	Share premium 2,710,554 $ - - - - - 2,710,554 $		Conversion premium of corporate bonds Treasury share transactions 5,514,032 $ 316,688 $ - 17,295 - - - 2,051 - - - - 5,514,032 $ 336,034 $ For theyear ended	Conversion premium of corporate bonds Treasury share transactions 5,514,032 $ 316,688 $ - 17,295 - - - 2,051 - - - - 5,514,032 $ 336,034 $ For theyear ended	Conversion premium of corporate bonds Treasury share transactions 5,514,032 $ 316,688 $ - 17,295 - - - 2,051 - - - - 5,514,032 $ 336,034 $ For theyear ended	Conversion premium of corporate bonds Treasury share transactions 5,514,032 $ 316,688 $ - 17,295 - - - 2,051 - - - - 5,514,032 $ 336,034 $ For theyear ended	Effect from net stockholding of associates recognised using equity method Difference between stock price and book value for disposal of subsidiaries 372,847 $ 163 $ - - 4,568 - 738 - - - - - 378,153 $ 163 $ December31,2020	Others 224,585 $ - - - 304) ( 4,420 228,701 $
			5,514,032 $ - - - - - 5,514,032 $		316,688 $ 17,295 - 2,051 - - 336,034 $

(14) Retained earnings

• A. Under the Company's Articles of Incorporation, the current year's earnings, if any, shall first be used to pay all taxes and offset prior years' operating losses and then 10% of the remaining amount shall be set aside as legal reserve. The remaining balance is to be set aside as special reserve if necessary; and distributed to shareholders as interest on capital. The remaining balance for current year, after allocating for interest on capital, shall be accumulated with remaining balance of previous year. Bonus distributed shall be proposed by the Board of Directors and resolved by the stockholders.

The special reserve includes:

• i. Reserve for a special purpose;

• ii. Investment income recognised under equity method and deferred income tax assets arising from unused investment tax credits which are deemed unrealised and transferred to special reserve. Such investment income and deferred income tax assets are reclassified to unappropriated earnings only when they are realised;

• iii. Net unrealised gains from financial instruments transactions. The special reserve for unrealised gains from financial instruments is reduced when the accumulated value of the unrealised gains also decreases; and

• iv. Other special reserves as stipulated by other laws.

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• B. The Company is in the mature stage and the profit is stable. The Board of Directors shall establish the cash dividend or stock dividend percentage. At least 50% of the distributable earnings after deducting the legal reserve, directors' and supervisors' remuneration, employee compensation and special reserves shall be distributed to stockholders. The Company would prefer cash dividend. If the Company requires funds for significant investments or needs to improve its financial structure, part of the dividend will be in the form of stocks which shall not exceed 50% of the total dividends.

• C. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

• D. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

• E. The appropriations of 2020 earnings had been resolved after meeting the statutory voting threshold before June 30, 2021 via the electronic voting platform for the stockholders’ meeting and had been resolved at the stockholders’ meeting on July 23, 2021. The appropriations of 2019 earnings had been resolved at the stockholders’ meeting on June 5, 2020. Details are as follows: For the years ended December 31,

Legal reserve Special reserve Cash dividends	Dividends per share Amount (indollar) 1,978,906 $ 3,704,582 14,652,966 2.50 $ 20,336,454 $ 2020	2019	2019
		Amount 2,970,224 $ 6,156,414 22,272,508 31,399,146 $	Dividends per share (indollar)
			3.80 $

Information about the appropriation of employees’ compensation and directors’ and supervisors’ remuneration by the Company as proposed by the Board of Directors and resolved by the stockholders will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

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• F. The resolution of the appropriations of the 2021 net income was approved during the Board of Directors’ meeting on March 9, 2022 as follows:

(15)	Other equity items Legal reserve Special reserve Cash dividends At January 1, 2021 Revaluation: –Parent company –Subsidiaries –Associates Revaluation transferred to retained earnings: –Subsidiaries –Associates Cash flow hedges: –Associates Currency translation differences: –Parent company –Tax of parent company –Subsidiaries –Associates At December 31, 2021	Dividends per Amount share (in dollar) 3,910,207 $ 6,428,356 28,133,694 4.80 $ 38,472,257 $ Forthe yearendedDecember31,2021 Hedgingreserve Unrealised gain(loss) Currency translation Total 32,123 $ 98,095,277 $ 5,272,606) ($ 92,854,794 $ - 19,745,942 - 19,745,942 - 1,785,922 - 1,785,922 - 2,881,494 - 2,881,494 - 1,277,669) ( - 1,277,669) ( - 2,565) ( - 2,565) ( 22,853) ( - - 22,853) ( - - 488,425) ( 488,425) ( - - 111,624 111,624 - - 74,173) ( 74,173) ( - - 517,090) ( 517,090) ( 9,270 $ 121,228,401 $ 6,240,670) ($ 114,997,001 $

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(16)	Operating revenue Hedgingreserve At January 1, 2020 659 $ Revaluation: –Parent company - –Subsidiaries - –Associates - Revaluation transferred to retained earnings: –Subsidiaries - –Associates - Cash flow hedges: –Associates 31,464 Currency translation differences: –Parent company - –Tax of parent company - –Subsidiaries - –Associates - At December 31, 2020 32,123 $ Revenue from contracts with customers Other operating revenue	Unrealised gain(loss)	Unrealised gain(loss)	Unrealised gain(loss)	Currency translation Total 4,560,606) ($ 102,560,930 $ - 15,129,232) ( - 6,863,880 - 874,558) ( - 29,924 - 84,386 - 31,464 278,998 278,998 104,057) ( 104,057) ( 71,356) ( 71,356) ( 815,585) ( 815,585) ( 5,272,606) ($ 92,854,794 $ the years ended December 31,	Currency translation Total 4,560,606) ($ 102,560,930 $ - 15,129,232) ( - 6,863,880 - 874,558) ( - 29,924 - 84,386 - 31,464 278,998 278,998 104,057) ( 104,057) ( 71,356) ( 71,356) ( 815,585) ( 815,585) ( 5,272,606) ($ 92,854,794 $ the years ended December 31,	Total
				2021 243,315,204 $ 169,858 243,485,062 $		2020
						159,546,461 $ 135,536
						159,681,997 $

	2021 2020 Revenue from contracts with customers 243,315,204 $ 159,546,461 $ Other operating revenue 169,858 135,536 243,485,062 $ 159,681,997 $ For the years ended December 31,	2021 2020 Revenue from contracts with customers 243,315,204 $ 159,546,461 $ Other operating revenue 169,858 135,536 243,485,062 $ 159,681,997 $ For the years ended December 31,	2021 2020 Revenue from contracts with customers 243,315,204 $ 159,546,461 $ Other operating revenue 169,858 135,536 243,485,062 $ 159,681,997 $ For the years ended December 31,
(17) (18)	The Company derives revenue from the transfer of goods and services at a point in time. Interest income Other income 2021 2020 Interest income: Interest income from bank deposits 4,594 $ 24,817 $ Interest from current account with others 43,509 104,492 48,103 $ 129,309 $ For theyears ended December31, 2021 2020 Rental revenue 153,144 $ 154,271 $ Dividend income 2,839,615 3,955,134 Other revenue 421,465 1,065,061 3,414,224 $ 5,174,466 $ For theyears ended December31,
		2021 2020 4,594 $ 24,817 $ 43,509 104,492 48,103 $ 129,309 $ For theyears ended December31,	2020
			24,817 $ 104,492
			129,309 $
		2021 153,144 $ 2,839,615 421,465 3,414,224 $	2020
			154,271 $ 3,955,134 1,065,061
			5,174,466 $

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(19) Other gains and losses

Other gains and losses
		Forthe years ended		December31,
		2021		2020
Net currency exchange loss	($	461,442)	($	717,765)
Gain (loss) on disposal of property,
plant and equipment		13,102	(	204,906)
Net loss on financial assets at
fair value through profit or loss	(	95,474)	(	155,458)
Other losses	(	82,406)	(	89,682)
	($	626,220)	($	1,167,811)

(20) Finance costs

Finance costs
			For the years ended			December 31,
			2021			2020
Interest expense:
Bank loans		$	89,879		$	204,421
Corporate bond			605,260			546,415
Current account with others			489			48
Discount			29,695			44,920
Other interest expenses			52,879			109,240
			778,202			905,044
Less: Capitalisation of qualifying assets	(		81,089)	(		96,149)
Finance costs		$	697,113		$	808,895

(21) Expenses by nature

Expenses by nature Finance costs	697,113 $ 808,895 $	697,113 $ 808,895 $
Employee benefit expense Depreciation charges on property, plant and equipment and right-of-use assets Employee benefit expense Amortisation Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses	Forthe years endedDecember31,
	2021 2020 5,958,059 $ 5,648,825 $ 8,007,734 7,088,232 3,470,945 3,166,572 17,436,738 $ 15,903,629 $ Forthe years endedDecember31,	2020
		5,648,825 $ 7,088,232 3,166,572
		15,903,629 $
	2021 6,953,006 $ 452,206 269,758 332,764 8,007,734 $	2020
		6,084,527 $ 416,442 298,134 289,129
		7,088,232 $

(22) Employee benefit expense

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• A. In accordance with the Articles of Incorporation of the Company, a ratio of profit before income tax of the current year distributable, after covering accumulated losses, shall be distributed as employees' compensation. The ratio shall not be lower than 0.05% and shall not be higher than 0.5% for employees’ compensation.

• B. For the years ended December 31, 2021 and 2020, employees’ remuneration was accrued at $41,705 and $20,624, respectively. The aforementioned amount was recognised in salary expenses.

• For the years ended December 31, 2021 and 2020, the employees’ compensation was estimated and accrued based on approximately 0.1% of the retained earnings.

• Employees’ compensation for 2020 as resolved by the Board of Directors was in agreement with the amount of $20,624 recognised in profit or loss for 2020. Employees’ compensation for 2020 had been distributed.

• Information about employees’ compensation and directors’ and supervisors’ remuneration of the Company as resolved at the meeting of Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(23) Income tax

• A. Income tax expense

• (a) Components of income tax expense:

tax ome tax expense Components of income tax expense:
		For the years ended December 31,
		2021		2020
Current tax:
Current tax on profits for the year	$	3,200,586	$	526,926
Tax on undistributed surplus earnings		157,860		200,241
Adjustments in respect of prior years		4,604		155,907
Total current tax		3,363,050		883,074
Deferred tax:
Origination and reversal of
temporary differences	(	58,765)		175,974
Total deferred tax	(	58,765)		175,974
Income tax expense	$	3,304,285	$	1,059,048
The income tax charge relating to components	of	other comprehensive income is as follows:
		For theyears ended December31,
		2021		2020
Currency translation differences	$	111,624	($	104,057)

• (b) The income tax charge relating to components of other comprehensive income is as follows:

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• B. Reconciliation between income tax expense and accounting profit

				Forthe years ended	Forthe years ended	Forthe years ended	Forthe years ended	Forthe years ended	December31,	December31,	December31,
				2021							2020
Tax calculated based on profit before tax and
statutory tax rate				8,332,726 $				$			4,120,638
Effect from items disallowed	by	tax regulation	(	5,190,905)			(				3,417,738)
Tax on undistributed surplus	earnings				157,860						200,241
Prior year income tax under estimation						4,604					155,907
Income tax expense				3,304,285 $				$			1,059,048
Amounts of deferred tax assets or liabilities as			a result of temporary differences							and investment
tax credits are as follows:
		Forthe yearended			December		31,		2021
					Recognised				in
						other
			Recognised in		comprehensive
		January1	profit or loss			income				December31
Temporary differences
Deferred tax assets:
Loss on inventory	$	113,285	$	81,877	$				-	$	195,162
Currency translation
differences		853,541		-		111,624					965,165
Unrealised gain from
downstream transactions		9,449		55,559					-		65,008
Unfunded pension expense		687,569	(	59,953)					-		627,616
Impairment loss		167,793	(	26,930)					-		140,863
Unrealised exchange loss		23,244	(	12,966)					-		10,278
Others		101,292		12,640					-		113,932
		1,956,173		50,227		111,624					2,118,024
Deferred tax liabilities:
Difference in useful life
for depreciation	(	40,277)		8,538					-	(	31,739)
	(	40,277)		8,538					-	(	31,739)
	$	1,915,896	$	58,765	$	111,624				$	2,086,285

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

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For the year ended December 31, 2020

January1 Recognised in profit or loss Temporary differences Deferred tax assets: Loss on inventory 138,327 $ 25,042) ($ Currency translation differences 957,598 - Unrealised gain from downstream transactions 57,035 47,586) ( Unfunded pension expense 846,362 158,793) ( Impairment loss 194,146 26,353) ( Unrealised exchange loss 33,239 9,995) ( Others 18,491 82,801 2,245,198 184,968) ( Deferred tax liabilities: Difference in useful life for depreciation 49,271) ( 8,994 49,271) ( 8,994 2,195,927 $ 175,974) ($	Recognised in other comprehensive income December31 - $ 113,285 $ 104,057) ( 853,541 - 9,449 - 687,569 - 167,793 - 23,244 - 101,292 104,057) ( 1,956,173 - 40,277) ( - 40,277) ( 104,057) ($ 1,915,896 $	December31
		113,285 $ 853,541 9,449 687,569 167,793 23,244 101,292
		1,956,173
		1,915,896 $

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

(24) Earnings per share

• A. Basic earnings per share

Basic earnings per share is calculated by dividing the profit attributable to ordinary shareholders of the parent by the weighted average number of ordinary shares in issue during the period. For the years ended December 31, 2021 and 2020, the earnings per share are calculated as follows:

For the years ended follows:	December 31, 2021 and 2020, the earnings per share are calculated as	December 31, 2021 and 2020, the earnings per share are calculated as	December 31, 2021 and 2020, the earnings per share are calculated as	December 31, 2021 and 2020, the earnings per share are calculated as
Basic earnings per share	For theyear ended December31,2021
	Before tax After tax 41,663,632 $ 38,359,347 $ Amount	Weighted average number of ordinary shares outstanding (shares in thousands) 5,849,017	(in dollars) Earnings per share
	Before tax 41,663,632 $		Before tax 7.12 $	After tax
				6.56 $
Net income

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Net income Basic earnings per share	Weighted average number of ordinary shares outstanding Before tax After tax (shares in thousands) Before tax After tax 20,603,189 $ 19,544,141 $ 5,849,017 3.52 $ 3.34 $ Earnings per share For theyear ended December31,2020 Amount (in dollars)

• B. Employees’ compensation could be distributed in the form of stock. Since there is no significant impact when calculating diluted earnings per share, basic earnings per share equals diluted earnings per share.

• C. If stocks of the parent company held by subsidiaries are not treated as treasury stocks, the calculation of basic earnings per share is as follows:

==> picture [459 x 212] intentionally omitted <==

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

For the year ended December 31, 2021
Weighted average
number of
ordinary shares Earnings per share
Amount outstanding (in dollars)
Before tax After tax (shares in thousands) Before tax After tax
Basic earnings per share
Net income $ 41,663,632 $ 38,359,347 5,861,186 $ 7.11 $ 6.54
For the year ended December 31, 2020
Weighted average
number of
ordinary shares Earnings per share
Amount outstanding (in dollars)
Before tax After tax (shares in thousands) Before tax After tax
Basic earnings per share
Net income $ 20,603,189 $ 19,544,141 5,861,186 $ 3.52 $ 3.33
----- End of picture text -----

(25) Supplemental cash flow information

• A. Investing activities with partial cash payments:

plemental cash flow information Investing activities with partial cash payments:
			For theyears ended		December31,
			2021		2020
Purchase of fixed assets		$	7,852,821	$	7,134,573
Add: Opening balance of payable on equipment			1,567,638		1,422,790
Less: Ending balance of payable on equipment	(		1,378,641)	(	1,567,638)
Cash paid during the year		$	8,041,818	$	6,989,725
Financing activities with partial cash payments:
			For theyears ended		December31,
			2021		2020
Distribution of cash dividends		$	14,652,966	$	22,272,508
Add: Opening balance of dividends payable			76,913		71,884
Less: Ending balance of dividends payable	(		72,427)	(	76,913)
Cash dividends paid during the year		$	14,657,452	$	22,267,479

• B. Financing activities with partial cash payments:

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(26) Changes in liabilities from financing activities

Short-term borrowings At January 1, 2021 13,763,200 $ Changes in cash flow from financing activities 4,878,900) ( At December 31, 2021 8,884,300 $ Short-term borrowings At January 1, 2020 21,057,000 $ Changes in cash flow from financing activities 7,293,800) ( At December 31, 2020 13,763,200 $	Short-term notes and bills payable 15,596,755 $ 1,899,929 17,496,684 $ Short-term notes and bills payable 14,396,370 $ 1,200,385 15,596,755 $	Bonds payable (including current Long-term borrowings (including current Liabilities from financial portion) portion) activities-gross 42,100,000 $ - $ 71,459,955 $ 7,950,000 - 4,971,029 50,050,000 $ - $ 76,430,984 $ Bonds payable (including current Long-term borrowings (including current Liabilities from financial portion) portion) activities-gross 34,850,000 $ 4,033,333 $ 74,336,703 $ 7,250,000 4,033,333) ( 2,876,748) ( 42,100,000 $ - $ 71,459,955 $

7. Related Party Transactions

(1) Names of related parties and relationship

Names of related parties and relationship
Names of relatedparties	Relationship with theCompany
Formosa Chemicals Industries (Ningbo) Co., Ltd. Formosa Power (Ningbo) Co., Ltd. Formosa Industries Corp., Vietnam Formosa Biomedical Technology Corp. Hong Jing Resources Corp. Formosa Idemitsu Petrochemical Corp. Formosa INEOS Chemicals Corp. Formosa Carpet Corp. Chia-Nan Enterprise Corp. (Note 1) Formosa Taffeta Co., Ltd. Tah Shin Spinning Corp. (Has completed liquidation on July 6, 2021) Formosa Taffeta (Zhongshan) Co., Ltd. Formosa Taffeta (Dong Nai) Co., Ltd. Formosa Taffeta (Long An) Corp. Formosa Petrochemical Corp. Formosa Heavy Industries Corp. Formosa Plastics Transport Corp.	Subsidiary " " " " " " " " " " " " " Associate " "

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Names of relatedparties Formosa Synthetic Rubber Corp. (Has completed liquidation on December 28, 2020) Formosa Synthetic Rubber (Hong Kong) Corp. Mai-Liao Power Corp. Formosa Group Corp. (Cayman) Formosa Environmental Technology Co. Hwa Ya Science Park Management Consulting Co, Ltd. Formosa Construction Corp. Formosa Resources Corporation FG INC. Guo Su Plastic Industry Co., Ltd. Formosa Plastics Corp. Nan Ya Plastics Corp. Nan Ya Plastics (Hui Zhou) Corp. Nan Ya Plastics (Ningbo) Corp. Formosa Lithium Iron Oxide Corp. Ming Chi University Of Technology Chang Gung University Yue Chi Development Corp PFG Fiber Glass Corp. Formosa Plastics Marine Corp. Formosa Plastics Marine Co., Ltd. Mai Liao Harbor Administration Corp. Formosa Plastics Building Parking Lot Formosa Network Technology Corp. FPG Travel Service Co., Ltd. Formosa Sumco Technology Corporation Formosa Asahi Spandex Co., Ltd. Formosa Plastics Logistics Corp. Formosa Daikin Advanced Chemicals Co., Ltd. Inteplast Taiwan Corporation Formosa Oil (Asia Pacific) Corporation Asia Pacific Development Corp. Ya Tai Development Corp. Bio Trust International Corp. Formosa Ha Tinh (Cayman) Limited Formosa Ha Tinh Steel Corp.

Relationship with theCompany

Associate " " " " " " " " " Other related party " " " " " " " " " " " " " " " " " " " " " " " " "

Note 1: On September 24, 2020, the Company acquired an additional 21% equity interest in ChiaNan Enterprise Corp. for a total cash consideration of $145,527. The Company’s shareholding ratio reached 51% and obtained control over it. Consequently, it bacame a subsidiary of the Company.

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(2) Significant related party transactions

A. Sales of goods:

ificant related party transactions Sales of goods:
Sales of goods: －Subsidiaries Formosa Chemicals Industries (Ningbo) Co., Ltd. Others －Associates Formosa Petrochemical Corp. Others －Other related parties Nan Ya Plastics Corp. Others	2021 2020 32,317,715 $ 22,194,973 $ 23,718,185 13,995,765 29,088,177 14,939,627 917 568 30,131,334 20,526,039 5,074,474 3,270,230 120,330,802 $ 74,927,202 $ Forthe years endedDecember31,
		74,927,202 $

The selling prices and terms for related parties are the same with non-related parties. The collection terms for overseas related parties are described in Note 13(1).

B. Purchases of goods:

Purchases of goods:
		For the years ended		December 31,
		2021		2020
Purchases of goods:
－Subsidiaries	$	6,392,816	$	2,614,522
－Associates
Formosa Petrochemical Corp.		141,866,388		84,047,613
－Other related parties		20,902,433		11,220,051
	$	169,161,637	$	97,882,186

The payment terms for related parties are within 30~60 days of purchase. The purchase prices and terms for related parties are the same with non-related parties.

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• C. Receivables from related parties:

Receivables from related parties:
	December31,2021		December31,2020
Receivables from related parties:
－Subsidiaries
Formosa Chemicals Industries
(Ningbo) Co., Ltd.	$	9,143,083	$	5,505,134
Others		2,710,337		2,574,647
－Associates
Formosa Petrochemical Corp.		2,704,029		1,684,297
Others		51		39
－Other related parties
Nan Ya Plastics Corp.		2,752,754		2,134,838
Others		626,068		410,632
	$	17,936,322	$	12,309,587

The receivables from related parties are mainly from sales of goods and receivables for payments on behalf of others for construction design services. Receivables for sales are due 30~120 days from the date of sales.

from the date of sales.
D. Payables to related parties: Payables to related parties: －Subsidiaries －Associates Formosa Petrochemical Corp. －Other related parties	December31,2021 533,073 $ 13,877,906 1,611,308 16,022,287 $	December31,2020
		493,360 $ 8,902,181 1,688,436
		11,083,977 $

The payables to related parties arise mainly from purchase transactions and are due 30~60 days after the date of purchase. The payables bear no interest.

• E. Expansion and repair project

• (a) Expansion and repair project:

ansion and repair project Expansion and repair project:
Expansion and repair works of factory sites: －Associates －Other related parties	For theyears ended December31,
	2021 352,208 $ 130,496 482,704 $	2020
		388,787 $ 367,340
		756,127 $

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(b) Ending balance of payables for expansion and repair project:

Payables to related parties: －Associates －Other related parties	December31,2021 December31,2020 888 $ 95 $ 68,532 41,945 69,420 $ 42,040 $

The Company contracted the expansion and repair works of the factory sites to related parties. The payment terms are in accordance with the industry practice with payment due within a month after inspection.

• F. Financing

• (a) Loans to related parties

month after inspection. ancing Loans to related parties
Interest income －Other related parties Formosa Plastics Marine Co., Ltd. －Subsidiaries －Associates Formosa Petrochemical Corp. －Other related parties Formosa Plastics Marine Co., Ltd.	December31,2021 December31,2020 2,698,693 $ 4,195,598 $ Forthe years endedDecember31,	December31,2020
		4,195,598 $
	2021 31 $ 1,917 41,451 43,399 $	2020
		45 $ 41,986 62,461
		104,492 $

• (b) Interest income

The loan terms to related parties are in accordance with the contract’s repayment schedule after the loan was made; interest were collected at 0.98% ~ 1.23% and 1.23% ~ 1.42% per annum for the years ended December 31, 2021 and 2020, respectively.

G. Operating expenses

Operating expenses
Transportation charges －Other related parties Formosa Plastics Marine Corp. Others	Forthe years endedDecember31,
	2021 2020 677,322 $ 1,505,927 $ 282,756 39,095 960,078 $ 1,545,022 $

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H. Rental revenue

Rental revenue
－Subsidiaries Formosa INEOS Chemicals Corp. Others －Associates Formosa Petrochemical Corp. Others －Other related parties Nan Ya Plastics Corp. Formosa Plastics Building Parking Lot Formosa Network Technology Corp. Others	2021 2020 15,903 $ 16,164 $ 8,663 7,763 24,566 23,927 21,215 21,215 12,590 12,022 33,805 33,237 27,182 25,791 15,815 16,064 15,400 15,400 26,438 29,682 84,835 86,937 143,206 $ 144,101 $ Forthe years endedDecember31,
		25,791 16,064 15,400 29,682
		86,937
		144,101 $

The rental prices charged to related parties are determined considering the local rental prices and payments, and are collected monthly.

I. Property transactions: (a) Purchase of property, plant and equipment

(b) Acquisition of financial assets Associates Items Formosa Resources Corporation Investments accounted for using equity method Guo Su Plastic Industry Co., Ltd. Investments accounted for using equity method	2021 2020 291,614 $ 278,560 $ For theyears ended December31, 2021 Number of Name of Additional shares the securities amount 88,453,125 Shares of Formosa Resources Corporation 887,813 $ 1,875,000 Shares of Guo Su Plastic Industry Co., Ltd. 48,469 936,282 $	For theyears ended December31,	For theyears ended December31,	For theyears ended December31,
			2020
		$	$	278,560
				2021
				Additional amount
				887,813 $ 48,469
				936,282 $

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2020
Number of Name of Additional
Items shares the securities amount
----- End of picture text -----

Number of Name of Items shares the securities	2020 Additional amount
Formosa Construction Corp. Investments accounted for using equity method 50,000,000 Shares of Formosa Construction Corp. FG INC. Investments accounted for using equity method - Shares of FG INC.	500,000 $ 737,727
	1,237,727 $

• J. Sales of materials:

The amounts of raw materials sold and the accounts receivable at the period-end from the investees located in China and Vietnam are listed below:

Donation Sales of materials: －Subsidiaries Receivable from sales of materials: －Subsidiaries Other related parties	2021 2020 445,848 $ 497,591 $ Forthe years endedDecember31, December31,2021 December31,2020 31,051 $ 51,113 $ Forthe years endedDecember31,	2021 2020 445,848 $ 497,591 $ Forthe years endedDecember31, December31,2021 December31,2020 31,051 $ 51,113 $ Forthe years endedDecember31,
	2021 3,781 $	2020
		6,121 $

• K. Donation

Other related parties

• L. Details of the Company providing endorsements / guarantees and issuing promissory note for related parties are provided in Notes 9(3) and (4).

(3) Key management compensation

L. Details of the Company providing endorsements related parties are provided in Notes 9(3) and (4). Key management compensation Other related parties	/ guarantees and issuing promissory note for 2021 2020 3,781 $ 6,121 $	/ guarantees and issuing promissory note for 2021 2020 3,781 $ 6,121 $
Salaries Post-employment benefits	Forthe years endedDecember31,
	2021 110,679 $ 1,480 112,159 $	2020
		111,845 $ 1,505
		113,350 $

8. Pledged Assets

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

Pledged assets Property, plant and equipment	December31,2021 December31,2020 5,737,666 $ 5,749,952 $ Bookvalue	Purpose
	December31,2021 5,737,666 $
		Collaterals for bank loans

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9. Significant Contingent Liabilities and Unrecognised Contract Commitments

The details of commitments and contingencies as of December 31, 2021 were as follows:

• (1) Capital expenditures contracted for property, plant and equipment at the balance sheet date but not yet incurred amounted to $5,987,615 thousand.

• (2) The outstanding letters of credit for major raw materials and equipment purchases amounted to USD 2,248 thousand, JPY 473,189 and EUR 1,019 thousand.

• (3) The endorsements and guarantees to others are as follows:

Formosa Resources Corporation Formosa Group Corp. (Cayman) Formosa Ha Tinh (Cayman) Limited	December31,2021 - $ 6,922,500 6,568,456 13,490,956 $	December31,2020
		3,064,610 $ 7,127,000 18,967,581
		29,159,191 $

• (4) The promissory notes issued for others are as follows:

As of December 31, 2021, the Company’s investees, Formosa Ha Tinh (Cayman) Limited and Formosa Ha Tinh Steel Corporation, were provided a bank loan facility of USD 322.25 million and 260.25 million, respectively to meet their operating needs. To secure the rights of their shareholders, the Company is required to issue promissory notes to ensure the borrowers will fulfill their obligation for repayment.

10. Significant Disaster Loss

None.

11. Significant Events after the Balance Sheet Date

• (1) On January 28, 2022, the Company redeemed 7,923,741 units of Mega Private US Dollar Money Market Funds at USD 10.9804 (in dollars) per unit, totalling USD 87,006 thousand (equivalent to $2,421,199), resulting to a gain on disposal of $12,555.

• (2) The Board of Directors has resolved the appropriations of 2021 earnings on March 9, 2022. Details are provided in Note 6(14) F.

12. Others

• (1) Due to the impact of the COVID-19 pandemic, there was a significant loss of momentum in the consumption market as a result of restrictions on people’s movement and social contact in many countries, and the spread of petrochemical products, being the difference between the product prices and cost of raw materials, gradually deviated from its historical norm because of fluctuations in international crude oil prices. Consequently, the Company’s operating revenue and net profit for 2020 decreased, resulting in a decrease in profit before tax of almost 35%. Although in 2021, the operating revenue increased by nearly 52% compared to the corresponding period of last year and the Company generated an operating profit due to the slowdown of the pandemic, the market demand significantly increased compared to the corresponding period of last year, the oil prices and the prices of petrochemical plastic products caused by the industry anomaly increased and the winter storm in Texas, USA had an impact on the Company’s operations, the overall impact of the pandemic on the financial position and performance of the Company in 2021 depends on the subsequent control of the pandemic and recovery momentum in the consumption market.

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(2) Capital management

The Company’s objectives when managing capital are to safeguard the Company’s ability to continue as a going concern in order to provide returns for shareholders and to maintain an optimal capital structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Company monitors capital on the basis of the gearing ratio.This ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings (including ‘current and non-current borrowings’ as shown in the consolidated balance sheet) less cash and cash equivalents. Total capital is calculated as ‘equity’ as shown in the consolidated balance sheet plus net debt.

During the years ended December 31, 2021 and 2020, the Company’s strategy, which was unchanged from 2020, was to maintain the gearing ratio at both 16%.

(3) Financial instruments

• A. Financial instruments by category

ancial instruments Financial instruments by category
Financial assets Financial assets at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets at amortised cost Financial liabilities Financial liabilities at amortised cost Lease liabilities	December31,2021 3,793,036 $ 147,153,738 33,554,078 184,500,852 $ 100,925,599 $ 21,879 100,947,478 $	December 31, 2020
		3,888,510 $ 127,407,796 27,116,928
		158,413,234 $
		89,716,734 $ 27,482
		89,744,216 $

Note: Financial assets measured at amortised cost include cash, contract assets, accounts and notes receivable, other receivables, other financial assets, and refundable deposits. Financial liabilities measured at amortised cost include short-term borrowings, short-term notes and bill payable, accounts and notes payable, other payables, long-term borrowings (including those maturing within one year or one business cycle), corporate bonds payable (including those maturing within one year or one business cycle), and guarantee deposits received.

• B. Financial risk management policies

(a) The Company’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Company’s overall risk management programme focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Company’s financial position and financial performance.

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• (b) Risk management is carried out by a central treasury department (Company treasury) under policies approved by the Board of Directors. Company treasury identifies, evaluates and hedges financial risks in close cooperation with the Company’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as foreign exchange risk, interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

• C. Significant financial risks and degrees of financial risks

• (a) Market risk

  • Foreign exchange risk

  • i. The Company operates internationally and is exposed to foreign exchange risk arising from the transactions of the Company used in various functional currency, primarily with respect to the USD and RMB. Foreign exchange risk arises from future commercial transactions, recognised assets and liabilities, and net investment in foreign operations.

  • ii. Management has set up a policy to manage its foreign exchange risk against its functional currency. Each entity hedges its entire foreign exchange risk exposure.

  • iii. The Company’s businesses involve some non-functional currency operations (the Company’s and certain subsidiaries’ functional currency: NTD; other certain subsidiaries’ functional currency: USD, VND and RMB). The information on assets and liabilities denominated in foreign currencies whose values would be materially affected by the exchange rate fluctuations is as follows:

. Financial assets Monetary items USD：NTD JPY：NTD EUR：NTD Non-monetary items RMB：NTD USD：NTD VND：NTD Financial liabilities Monetary items USD：NTD JPY：NTD EUR：NTD	December31,2021	December31,2021
	Foreign Currency Amount (In Thousands) 675,665 $ 21,599 297 15,640,534 $ 186,926 6,095,040,833 32,167 $ 51,754 250	ExchangeRate 27.69 0.24 31.36 4.34 27.69 0.0012 27.69 0.24 31.36	BookValue (NTD)
			18,709,164 $ 5,184 9,314 67,879,918 $ 5,175,969 7,314,049 890,704 $ 12,421 7,840

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			December31,2020	December31,2020
			Foreign Currency
.		Amount(In Thousands)		Exchange Rate	Book	Value(NTD)
Financial assets
	Monetary items
	USD：NTD	$	426,306	28.51	$	12,153,984
	JPY：NTD		4,360	0.27		1,177
	EUR：NTD		33	34.56		1,140
	Non-monetary items
	RMB：NTD	$	13,962,242	4.37	$	61,014,998
	USD：NTD		190,294	28.51		5,425,283
	VND：NTD		6,676,430,000	0.0012		8,011,716
Financial liabilities
	Monetary items
	USD：NTD	$	43,237	28.51	$	1,232,687
	JPY：NTD		98,204	0.27		26,515
	EUR：NTD		83	34.56		2,868

• iv. Total exchange gain (loss), including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Company for the years ended December 31, 2021 and 2020 amounted to ($461,442) and ($717,765), respectively.

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

. Financial assets Monetary items USD：NTD JPY：NTD EUR：NTD Non-monetary items RMB：NTD USD：NTD VND：NTD Financial liabilities Monetary items USD：NTD JPY：NTD EUR：NTD	For theyear ended December31,2021	For theyear ended December31,2021	For theyear ended December31,2021
	Sensitivity analysis
	Degree ofvariation 1% 1% 1% 1% 1% 1% 1% 1% 1%	Effect on profit or loss 187,092 $ 52 93 - $ - - 8,907 $ 124 78	Effect on other comprehensive income
			- $ - - 678,799 $ 51,760 73,140 - $ - -

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For the year ended December 31, 2020 Sensitivity analysis

	Sens	itivity analysis
. Financial assets Monetary items USD：NTD JPY：NTD EUR：NTD Non-monetary items RMB：NTD USD：NTD VND：NTD Financial liabilities Monetary items USD：NTD JPY：NTD EUR：NTD	Degree ofvariation 1% 1% 1% 1% 1% 1% 1% 1% 1%	Effect on Effect on other comprehensive profit or loss income 121,540 $ - $ 12 - 11 - - $ 610,150 $ - 54,253 - 80,117 12,327 $ - $ 265 - 29 -

Price risk

• i. The Company is exposed to equity securities price risk because of investments held by the Company and classified on the consolidated balance sheet either as available-for-sale or at fair value through profit or loss. The Company is not exposed to commodity price risk. To manage its price risk arising from investments in equity securities, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

• ii. The Company’s investments in equity securities comprise domestic listed and unlisted stocks. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 1% with all other variables held constant, components of equity for the years ended December 31, 2021 and 2020 would have increased/decreased by $30,344 and $31,108, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $1,471,537 and $1,274,078, respectively, as a result of other comprehensive income classified as available-for-sale equity investment and equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

• i. The Company’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Company to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. Borrowings issued at fixed rates expose the Company to fair value interest rate risk. During the years ended December 31, 2021 and 2020, the Company’s borrowings at variable rate were denominated in the NTD and USD.

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• ii. The Company’s borrowings are measured at amortised cost. The borrowings are periodically contractually repriced and to that extent are also exposed to the risk of future changes in market interest rates.

• (b) Credit risk

• i. Credit risk refers to the risk of financial loss to the Company arising from default by the clients or counterparties of financial instruments on the contract obligations. The main factor is that counterparties could not repay in full the accounts receivable based on the agreed terms, and the contract cash flows of instruments stated at fair value through other comprehensive income.

• ii. The Company manages its credit risk taking into consideration the entire Company’s concern. For banks and financial institutions, only independently rated parties with a minimum rating of ‘A’ are accepted. According to the Company’s credit policy, the Company is responsible for managing and analysing the credit risk for each of the new clients before standard payment and delivery terms and conditions are offered. Internal risk control assesses the credit quality of the customers, taking into account their financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the Board of Directors. The utilisation of credit limits is regularly monitored.

• iii. The Company adopts assumptions under IFRS 9 to assess whether there has been a significant increase in credit risk on that instrument since initial recognition.

• iv. The Company wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Company will continue executing the recourse procedures to secure their rights. On December 31, 2021 and 2020, the Company’s written-off financial assets that are still under recourse procedures amounted to $0 and $128,664, respectively.

• v. The Company used the forecastability of Taiwan Directorate General of Budget, Accounting and Statistics and Taiwan Institute of Economic Research boom observation report to adjust historical and timely information to assess the default possibility of accounts receivable. On December 31, 2021 and 2020, the provision matrix is as follows:

At December 31, 2021 Expected loss rate Total book value Loss allowance At December 31, 2020 Expected loss rate Total book value Loss allowance	Not past due 0.07% 25,158,124 $ 16,695 $ 0.15% 18,187,475 $ 26,806 $	Up to 30 days past due 0.03% 483,058 $ 120 $ 0.03% 161,744 $ 3 $	31~60 days past due 0.04% 71,407 $ 30 $ 0.03% 11,038 $ - $	61~90 days past due - - $ - $ - - $ - $	Over 91 days past due 93.81% 58,873 $ 55,231 $ 53.36% 85,013 $ 45,361 $

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

For the year ended December 31, 2021

	Accounts receivable	Accounts receivable		Contract assets		Notes receivable
At January 1	$	72,170	$	-	$	-
Reversal of	(	94)		-		-
impairment loss
At December 31	$	72,076	$	-	$	-
		Forthe	yearendedDecember31,2020
	Accountsreceivable			Contract assets		Notesreceivable
At January 1	$	200,834	$	-	$	-
Write-offs	(	128,664)		-		-
At December 31	$	72,170	$	-	$	-
The ageing analysis	of accounts receivable that			were past due but not impaired is as follows:
			December31,2021		December 31, 2020
Not past due			$	25,158,124	$	18,187,475
Up to 30 days				483,058		161,744
31 to 60 days				71,407		11,038
61 to 90 days				-		-
Over 91 days				58,873		85,013
			$	25,771,462	$	18,445,270

The above ageing analysis was based on past due date.

• (c) Liquidity risk

• i. Cash flow forecasting is performed in the operating entities of the Company and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Company’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Company’s debt financing plans, covenant compliance, compliance with internal balance sheet ratio targets and, if applicable, external regulatory or legal requirements, for example, currency restrictions.

• ii. Surplus cash held by the operating entities over and above balance required for working capital management are transferred to the Company treasury. Company treasury invests surplus cash in interest bearing current accounts, loans to related parties, time deposits and cash equivalents, choosing instruments with appropriate maturities or sufficient liquidity to provide sufficient headroom as determined by the abovementioned forecasts.

• iii. The table below analyses the Company’s non-derivative financial liabilities and netsettled or gross-settled derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

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Non-derivative financial liabilities:

		Less than		Between 1		Between 3
December31,2021		1year		and 2 years		and 5 years	Over5 years
Lease liability	$	5,022	$	2,085	$	6,239	$	9,990
Bonds payable		4,550,000		4,850,000		26,850,000		13,800,000
Non-derivative financial liabilities:
		Less than		Between 1		Between 3
December31,2020		1year		and 2 years		and 5 years	Over5 years
Lease liability	$	6,033	$	5,022	$	6,251	$	12,063
Bonds payable		2,050,000		4,550,000		16,600,000		18,900,000
Except for the aforementioned liabilities, the Company’s non-derivative financial
liabilities will mature within one year.

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

• (4) Fair value estimation

• A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:

  • Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Company’s investment in listed stocks, beneficiary certificates, on-the-run Taiwan central government bonds and derivative instruments with quoted market prices is included in Level 1.

  • Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset for the asset or liability, either directly or indirectly. The fair value of the Company’s investment in off-the-run government bonds, corporate bonds, bank debentures, convertible bonds and most derivative instruments is included in Level 2.

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

• B. Financial instruments not measured at fair value

  • The carrying amounts of cash and cash equivalents, notes receivable (including related parties), accounts receivable (including related parties), other receivables (including related parties), short-term borrowings, short-term notes and bills payable, notes payable (including related parties), accounts payable (including related parties) and other payables (including related parties) are approximate to their fair values. The carrying amounts of long-term borrowings (including current portion) and lease liabilities are reasonable basis for fair value estimate given that their interest rates are approximate to market rates.

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C. The related information on financial and non-financial instruments measured	C. The related information on financial and non-financial instruments measured	C. The related information on financial and non-financial instruments measured	C. The related information on financial and non-financial instruments measured	C. The related information on financial and non-financial instruments measured	C. The related information on financial and non-financial instruments measured	C. The related information on financial and non-financial instruments measured	at	fair value by	fair value by
level on the basis of the nature,	characteristics		and	risks of the assets and liabilities are as follows:
December 31, 2021		Level 1		Level 2		Level3			Total
Assets:
Recurring fair value measurement
Financial assets at fair value
through profit or loss
Fund	$	-	$	3,793,036	$	-	$		3,793,036
Financial assets at fair value
through other comprehensive
Equity securities		112,433,169		2,833,065		31,887,504		147,153,738
	$	112,433,169	$	6,626,101	$	31,887,504	$	150,946,774
December 31, 2020		Level 1		Level 2		Level3			Total
Assets:
Recurring fair value measurement
Financial assets at fair value
through profit or loss
Fund	$	-	$	3,888,510	$	-	$		3,888,510
Financial assets at fair value
through other comprehensive
Equity securities		105,954,674		2,435,431		19,017,691		127,407,796
	$	105,954,674	$	6,323,941	$	19,017,691	$	131,296,306

• D. The methods and assumptions the Company used to measure fair value are as follows:

• i. The instruments the Company used market quoted prices as their fair value (that is, Level 1) are listed below by characteristics:

Market quoted price

Listed shares Open-end fund Closing price Net asset value

• ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the consolidated balance sheet date.

• iii. When assessing non-standard and low-complexity financial instruments, for example, debt instruments without active market, interest rate swap contracts, foreign exchange swap contracts and options, the Company adopts valuation technique that is widely used by market participants, the inputs used in the valuation method to measure these financial instruments are normally observable in the market.

• iv. The valuation of derivative financial instruments is based on valuation model widely accepted by market participants, such as present value techniques and option pricing models. Forward exchange contracts are usually valued based on the current forward exchange rate. Structured interest derivative instruments are measured by using appropriate option pricing models (i.e. Black-Scholes model) or other valuation methods, such as Monte Carlo simulation.

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• v. The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Company’s financial and non-financial instruments. Therefore, the estimated value derived using valuation model is adjusted accordingly with additional inputs, for example, model risk or liquidity risk and etc. In accordance with the Company’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment or valuation is necessary in order to reasonably represent the fair value if financial and non-financial instruments at the balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.

• vi. The Company takes into account adjustments for credit risks of the counterparty and the Company’s credit quality.

• E. For the years ended December 31, 2021 and 2020, there was no transfer between Level 1 and Level 2.

• F. The following chart is the movement of Level 3 for the years ended December 31, 2021 and 2020:

2020:
		For the year ended December 31, 2021
			Non-derivative equity instrument
At January 1		$	19,017,691
Gain or loss recognised in
other comprehensive income
Recorded as unrealised gains (losses) on
valuation of investments in equity instruments
measured at fair value through
other comprehensive income			12,869,813
At December 31		$	31,887,504
		Forthe yearendedDecember31,2020
			Non-derivative equityinstrument
At January 1		$	15,802,132
Gain or loss recognised in
other comprehensive income
Recorded as unrealised gains (losses) on	(		14,509,408)
valuation of investments in equity instruments
measured at fair value through
other comprehensive income
Acquired by consolidation in the period			17,739,777
Others	(		14,810)
At December 31		$	19,017,691

G. For the years ended December 31, 2021 and 2020, there was no transfer from Level 3.

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• H. The Company Treasury is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently calibrating valuation model, performing back-testing, updating inputs used to the valuation model and making any other necessary adjustments to the fair value. The Treasury sets up valuation policies, valuation processes and rules for measuring fair value of financial instruments and ensure compliance with the related requirements in IFRS. The related valuation results are reported to Accounting Division monthly. Accounting Division is responsible for managing and reviewing valuation processes.

• I. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

Non-derivative equity instrument: Unlisted shares	Relationship of Valuation Significant inputs to December31,2021 technique unobservableinput fairvalue 16,858,223 $ Market comparable companies Price to earnings ratio multiple, price to book ratio multiple, enterprise value to operating income ratio multiple, enterprise value to EBITA multiple, discount for lack of marketability, control premium The higher the multiple, the higher the fair value 1,448,502 Discounted cash flow Long-term revenue growth rate, weighted average cost of capital, long-term pre-tax operating margin, discount for lack of marketability, discount for lack of control The higher the long-term revenue growth rate and long-term pre-tax operating margin, the higher the fair value 13,580,779 Net asset value Not applicable Not applicable	Relationship of inputs to fairvalue

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Non-derivative equity instrument: Unlisted shares	Relationship of Valuation Significant inputs to December31,2020 technique unobservableinput fairvalue 9,556,575 $ Market comparable companies Price to earnings ratio multiple, price to book ratio multiple, enterprise value to operating income ratio multiple, enterprise value to EBITA multiple, discount for lack of marketability, control premium The higher the multiple, the higher the fair value 998,799 Discounted cash flow Long-term revenue growth rate, weighted average cost of capital, long-term pre-tax operating margin, discount for lack of marketability, discount for lack of control The higher the long-term revenue growth rate and long-term pre-tax operating margin, the higher the fair value 8,462,317 Net asset value Not applicable Not applicable	Relationship of inputs to fairvalue

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• J. The Company has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect on profit or loss or on other comprehensive income from financial assets and liabilities categorised within Level 3 if the inputs used to valuation models have changed:

models have changed:
Input Change Financial assets Equity instrument Price to earnings ratio multiple, price to book ratio multiple, enterprise value to operating income ratio multiple, enterprise value to EBITA multiple, discount for lack of marketability, control premium ±1% Equity instrument Long-term revenue growth rate, weighted average cost of capital, long-term pre-tax operating margin, discount for lack of marketability, discount for lack of control ±1% Input Change Financial assets Equity instrument Price to earnings ratio multiple, price to book ratio multiple, enterprise value to operating income ratio multiple, enterprise value to EBITA multiple, discount for lack of marketability, control premium ±1% Equity instrument Long-term revenue growth rate, weighted average cost of capital, long-term pre-tax operating margin, discount for lack of marketability, discount for lack of control ±1%	December31,2021
	Favourable Unfavourable change change 168,582 $ 168,582 $ 14,485 $ 14,485 $ comprehensiveincome Recognised in other December31,2020
		168,582 $
		14,485 $
		31,2020
	comprehensiveincome Recognised in other
	Favourable change 95,566 $ 9,988 $	Unfavourable change
		95,566 $
		9,988 $

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13. Supplementary Disclosures

• (1) Significant transactions information

In accordance with Rules Governing the Preparation of Financial Statements by Securities Issuers, significant transactions for the year ended December 31, 2021 are stated as follows.

• A. Loans to others: Please refer to table 1.

• B. Provision of endorsements and guarantees to others: Please refer to table 2.

• C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.

• D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: Please refer to table 4.

• E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: Please refer to table 5.

• F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.

• G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 6.

• H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 7.

• I. Trading in derivative instruments undertaken during the reporting periods: None.

• J. Significant intragroup transactions during the reporting periods: Please refer to table 8.

• (2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 9.

• (3) Information on investments in Mainland China

• A. Basic information: Please refer to table 10.

• B. Significant transactions, either directly or indirectly through a third area, with investee companies in the Mainland Area: Please refer to table 11.

• (4) Major shareholders information

Major shareholders information: Please refer to table 12.

14. Segment Information

None.

~71~

Formosa Chemicals and Fibre Corporation

Loans to others

For the year ended December 31, 2021

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

Is a related party No. （Note 1） Creditor Borrower General ledger account （Note 2） Maximum outstanding balance duringthe year ended December 31, 2021 （Note 3） Balance at December 31, 2021 （Note 8） Allowance for doubtful accounts Actual amount drawn down Interest rate Nature of loan （Note 4） Amount of transactions with the borrower （Note 5） Reason for short-term financing （Note 6）	Collateral	Limit on loans granted to a single party （Note 7）	Ceiling on total loans granted （Note 7）	Footnote
	Item Value
0 The Company Formosa Plastics Corp. Other receivables- related party Yes 8,500,000 $ 4,500,000 $ - $ 0.98~1.23 1 2 Additional operating capital - $ 0 The Company Formosa Idemitsu Petrochemical Corp. Other receivables- related party Yes 500,000 500,000 - 0.98~1.23 1 2 Additional operating capital - 0 The Company Nan Ya Plastics Corp. Other receivables- related party Yes 8,500,000 4,500,000 - 0.98~1.23 1 2 Additional operating capital - 0 The Company Formosa Biomedical Technology Corp. Other receivables- related party Yes 500,000 500,000 - 0.98~1.23 2 1 Additional operating capital - 0 The Company Formosa Heavy Industries Corp. Other receivables- related party Yes 9,700,000 5,700,000 - 0.98~1.23 2 1 Additional operating capital - 0 The Company Formosa Plastics Marine Co., Ltd. Other receivables- related party Yes 6,054,301 2,858,693 2,698,693 0.98~1.23 2 1 Additional operating capital - 0 The Company Formosa FCFC Carpet Corp. Other receivables- related party Yes 100,000 100,000 - 0.98~1.23 2 1 Additional operating capital -	- - $ - - - - - - - - - - - -	97,742,633 $ 97,742,633 97,742,633 78,194,107 78,194,107 78,194,107 78,194,107	195,485,266 $ 195,485,266 195,485,266 156,388,213 156,388,213 156,388,213 156,388,213	- - - - - - -

Table 1, Page 1

Is a related party No. （Note 1） Creditor Borrower General ledger account （Note 2） Maximum outstanding balance duringthe year ended December 31, 2021 （Note 3） Balance at December 31, 2021 （Note 8） Allowance for doubtful accounts Actual amount drawn down Interest rate Nature of loan （Note 4） Amount of transactions with the borrower （Note 5） Reason for short-term financing （Note 6）	Collateral	Limit on loans granted to a single party （Note 7）	Ceiling on total loans granted （Note 7）	Footnote
	Item Value
0 The Company Hong Jing Resources Corp. Other receivables- related party Yes 500,000 $ 500,000 $ - $ 0.98~1.23 2 1 Additional operating capital - $ 0 The Company Formosa Petrochemical Corp. Other receivables- related party Yes 8,500,000 4,500,000 - 0.98~1.23 1 2 Additional operating capital - 2 Formosa Power (Ningbo) Co., Ltd. Formosa Chemicals Industries (Ningbo) Co., Ltd. Receivables from related party Yes 7,798,842 3,118,018 3,118,018 3.08~3.32 1 2 Additional operating capital -	- - $ - - - -	78,194,107 $ 97,742,633 8,252,819	156,388,213 $ 195,485,266 16,505,638	- - -

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

• (1) The Company is ‘0’.

• (2) The subsidiaries are numbered in order starting from ‘1’.

• Note 2: Name of account in which the loans are recognised including but not limited to accounts receivables-related parties, other receivables-related parties and, current account with stockholders, prepayments, and temporary payments, etc. Note 3: Maximum outstanding balance of loans to others during the year ended December 31, 2021.

Note 4: The nature of loans:

• (1) Related to business transactions is "1".

• (2) Short-term financing is "2".

Note 5: Amount of business transactions with the borrower :

• (1) No business transactions is "1".

• (2) Business transactions amount is provided in Note 13 (1) G.

• Note 6: Provided that loans to others are for necessary short-term financing by nature, shall specifically note necessary reasons for the loans and purposes of the borrowers, for example, repayment of loans, acquisition of equipment, and financing for operation, etc.

• Note 7: The calculation of line of credit:

The limit on loans granted by the Company to a single party, related party and party with business transactions shall not be more than 25% of the Company's net assets, and limit to others is 20% of the Company's net assets.

The ceiling on loans granted by the Company to others shall not be more than 50% of the Company's net assets, and ceiling on loans granted a short-term financing borrower with no business transactions shall not be more than 40% of the Company's net assets.

The limit on loans granted by a subsidiary to a single party, related party and party with business transactions shall not be more than 50% of the subsidiary's net assets, and limit to others is 40% of the subsidiary's net assets.

The ceiling on loans granted by a subsidiary to others shall not be more than 100% of the Company's net assets, and limit on loans granted by a subsidiary to a single party, related party and party with business transactions shall not be more than 50% of the subsidiary's net assets, and limit to others is 40% of the subsidiary's net assets.

Note 8: The amount was resolved by the Board of Directors.

Table 1, Page 2

Formosa Chemicals and Fibre Corporation Provision of endorsements and guarantees to others For the year ended December 31, 2021

Table 2

Expressed in thousands of NTD (Except as otherwise indicated)

Number （Note 1） Endorser/ guarantor	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party （Note 3）	Maximum outstanding endorsement/ guarantee amount as of December 31, 2021 （Note 4）	Outstanding endorsement/ guarantee amount at December 31, 2021 （Note 5）	Actual amount drawn down （Note 6）	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided （Note 3）	Provision of endorsements/ guarantees by parent company to subsidiary （Note 7）	Provision of endorsements/ guarantees by subsidiary to parent company （Note 7）	Provision of endorsements/ guarantees to the party in Mainland China （Note 7）	Footnote
	Companyname Relationship with the endorser/ guarantor （Note2）
0 The Company 0 The Company 0 The Company 1 Formosa Taffeta Co., Ltd. 1 Formosa Taffeta Co., Ltd. 1 Formosa Taffeta Co., Ltd. 1 Formosa Taffeta Co., Ltd. 1 Formosa Taffeta Co., Ltd.	Formosa Group (Cayman) Limited 6 Formosa Ha Tinh (Cayman) Limited 6 Formosa Resources Corporation 6 Formosa Taffeta (Zhongshan) Co., Ltd. 2 Formosa Taffeta (Vietnam) Co., Ltd. 2 Formosa Taffeta (Changshu) Co., Ltd. 2 Formosa Taffeta (Dong Nai) Co., Ltd. 2 Formosa Ha Tinh (Cayman) Co., Ltd. 6	254,130,847 $ 254,130,847 254,130,847 40,458,507 40,458,507 40,458,507 40,458,507 40,458,507	7,132,750 $ 18,903,708 3,067,083 941,655 1,512,355 1,569,425 4,031,380 6,356,390	6,922,500 $ 6,568,456 - 913,440 1,467,040 1,522,400 3,473,840 2,209,563	6,922,500 $ 6,568,456 - 13,840 484,408 189,498 2,358,647 2,209,563	- $ - - - - - - -	1.77 1.68 - 1.47 2.36 2.45 5.58 3.55	508,261,693 $ 508,261,693 508,261,693 80,917,015 80,917,015 80,917,015 80,917,015 80,917,015	N N N Y Y Y Y N	N N N N N N N N	N N N Y N Y N N	- - - - - - - -

Note 1: The numbers filled in for the endorsements/guarantees provided by the Company or subsidiaries are as follows:

(1) The Company is ‘0’.

• (2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following six categories:

• (1) Having business relationship.

• (2) The endorser/guarantor parent company owns directly more than 50% voting shares of the endorsed/guaranteed subsidiary.

• (3) The endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/guaranteed company.

(4) The endorsed/guaranteed parent company directly or indirectly owns more than 90% voting shares of the endorser/guarantor subsidiary.

• (5) Mutual guarantee of the trade as required by the construction contract.

• (6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

• (7) Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.

Note 3: In accordance with Company's procedures of endorsements and guarantees, limit on the Company's total guarantee amount is 130% of the Company's net assets, the limit on endorsement/guarantee to a single party

is 50% of the aforementioned total amount. For companies having business relationship with the Company and thus being provided endorsements/guarantees, the limit on endorsements to a single party is the higher value of purchasing or selling.

Note 4: Year-to-date maximum outstanding balance of endorsements/guarantees provided as of the reporting period.

Note 5: Fill in the amount approved by the Board of Directors or the chairman if the chairman has been authorised by the Board of Directors based on subparagraph 8, Article 12 of the Regulations Governing Loaning of Funds and Making of Endorsements/Guarantees by Public Companies.

Note 6: Fill in the actual amount of endorsements/guarantees used by the endorsed/guaranteed company.

Note 7: 'Y' represents cases of provision of endorsements/guarantees by listed parent company to subsidiary, provision by subsidiary to listed parent company, or provision to the party in Mainland China.

Table 2, Page 1

Formosa Chemicals and Fibre Corporation

Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures)

For the year ended December 31, 2021

Table 3

Expressed in thousands of NTD

(Except as otherwise indicated)

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer（Note 2）	General ledger account		As of December 31,2021	As of December 31,2021	Fair value Footnote
				Number of shares	Book value	Ownership (%)
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company	Stocks_Formosa Plastics Corp. Stocks_Asia Pacific Investment Corp. Stocks_Nan Ya Plastics Corp. Stocks_Nan Ya Technology Corp. Stocks_Formosa Union Chemical Corp. Mega Private US Dollar Money Market Funds Stocks_Mai-Liao Harbor Administration Corp. Stocks_Formosa Plastic Corp. U.S.A. Stocks_Taiwan Stock Exchange Corp. Stocks_Taiwan Aerospace Corp. Stocks_Yi-Jih Development Corp.	Other related party Other related party Other related party Other related party - - Other related party Other related party - - Other related party	Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current	486,978,693 63,621,500 413,327,750 334,815,409 14,723,422 12,477,992 39,562,740 8,999 16,803,148 1,070,151 63,174	50,645,785 $ 2,833,065 35,298,190 26,149,083 340,111 3,793,036 1,077,689 7,198,379 3,308,204 15,378 16,998	7.65 14.97 5.21 10.81 3.09 - 17.98 2.92 2.00 0.79 1.51	50,645,785 $ - 2,833,065 - 35,298,190 - 26,149,083 - 340,111 - 3,793,036 - 1,077,689 - 7,198,379 - 3,308,204 - 15,378 - 16,998 -

Table 3, Page 1

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer（Note 2）	General ledger account		As of December 31,2021	As of December 31,2021	Fair value Footnote
				Number of shares	Book value	Ownership (%)
The Company The Company The Company The Company The Company The Company The Company The Company The Company Formosa Biomedical Technology Corp. Formosa Biomedical Technology Corp. Formosa Biomedical Technology Corp. Formosa Biomedical Technology Corp.	Stocks_Chinese Television System Corp. Stocks_Formosa Plastics Maritime Corp. Stocks_Formosa Development Corp. Stocks_Formosa Network Technology Corp. Stocks_Formosa Plastics Marine Corp. Stocks_Formosa Ocean Group Marine Investment Corp. Stocks_Guangyuan Investment Corp. Stocks_Mega Growth Venture Capital Co., Ltd. Stocks_Formosa Ha Tinh (Cayman) Limited Stocks_Formosa Union Chemical Corp. Asteran Milestone Private Equity Fund Stocks_Formosa Lithium Iron Oxide Corp. Stocks_Formosa Network Technology Corp.	- Other related party Other related party Other related party Other related party Other related party - - Other related party - - Other related party Other related party	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current	2,376,202 355,880 19,087,800 2,925,000 2,428,500 2,622 3,750,000 2,500,000 621,178,219 865,373 - 5,300,000 226,120	52,585 $ 370,813 284,026 158,126 760,970 5,343,884 36,075 20,050 13,244,327 19,990 110,864 - 12,224	1.41 18.22 18.00 12.50 15.00 19.00 3.91 1.97 11.43 0.18 - 15.14 0.97	52,585 $ - 370,813 - 284,026 - 158,126 - 760,970 - 5,343,884 - 36,075 - 20,050 - 13,244,327 - 19,990 - 110,864 - - - 12,224 -

Table 3, Page 2

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer（Note 2）	General ledger account		As of December 31,2021	As of December 31,2021	Fair value Footnote
				Number of shares	Book value	Ownership (%)
Formosa Biomedical Technology Corp. Formosa Biomedical Technology Corp. Formosa Biomedical Technology Corp. Formosa Biomedical Technology Corp. Formosa Biomedical Technology Corp. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd.	Stocks_Taiwan Leader Biotech Corp. Stocks_United Performance Materials Corp. Stocks_United Biopharma (Cayman), Inc. Stocks_UBI Pharma Inc. Maxigen Biotech Inc. Stocks_Formosa Chemicals & Fibre Corp. Stocks_Pacific Electric Wire & Cable Corp., Ltd. Stocks_Formosa Plastics Corp. Stocks_Nan Ya Plastics Corp. Stocks_Asia Pacific Investment Corp. Stocks_Nan Ya Technology Corp. Stocks_Formosa Petrochemical Corp. Stocks_Syntronix Corporation Stocks_Toa Resin Corp., Ltd.	- Other related party - - - Ultimate parent company - Other related party Other related party Other related party Other related party Other related party - Other related party	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current	2,100,000 423,720 23,559,814 3,289,600 7,534,235 12,169,610 35 640 482,194 10,000,000 7,711,010 365,267,576 234,166 14,400	11,760 $ 5,288 564,654 241,555 312,821 983,305 - 67 41,179 464,900 602,230 35,029,160 12,885 46,428	4.24 0.46 13.42 3.12 9.78 0.21 - - 0.01 2.35 0.25 3.83 0.54 10.00	11,760 $ - 5,288 - 564,654 - 241,555 - 312,821 983,305 3 - - 67 - 41,179 - 464,900 - 602,230 - 35,029,160 - 12,885 - 46,428 -

Table 3, Page 3

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer（Note 2）	General ledger account		As of December 31,2021	As of December 31,2021	Fair value Footnote
				Number of shares	Book value	Ownership (%)
Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Development Co., Ltd.	Stocks_Shin Yun Natural Gas Corp. Stocks_Wk Technology Fund IV Ltd. FG INC NKFG Co. Stocks_Formosa Ha Tinh (Cayman) Limited Stocks_Formosa Taffeta Co., Ltd.	- - Other related party Other related party Other related party Parent company	Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current	852,120 337,183 600 5,540,000 209,010,676 2,193,228	28,313 $ 503 240,229 39,706 4,512,624 65,907	1.20 3.17 3.00 2.50 3.85 0.13	28,313 $ - 503 - 240,229 - 39,706 - 4,512,624 - 65,907 -

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities, as defined in IFRS 9 "Financial instruments". Note 2: The column is left blank if the issuer of marketable securities is non-related party.

Note 3: The Company's stocks held by the subsidiaries— Formosa Taffeta Co., Ltd. —is deemed as treasury stocks. Details are provided in Note 6 (12).

Table 3, Page 4

Formosa Chemicals and Fibre Corporation

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital

For the year ended December 31, 2021

							For the year ended December 31, 2021	For the year ended December 31, 2021
Table 4 Investor	Marketable securities （Note1）	General ledgeraccount	Counterparty （Note2）	Relationship with the investor （Note2）	Balance as at January1,2021		Addition （Note 3）			Disposal （Note 3）			Balance as atDecember31,2021 Expressed in thousands of NTD (Except as otherwise indicated)
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Bookvalue	Gain (loss) on disposal	Number of shares	Amount
The Company Formosa Biomedical Technology Corp.	Formosa Resources Corporation Stocks_UBI Pharma Inc.	Investments accounted for using equity method Financial assets at fair value through other comprehensive income - non- current	Formosa Resources Corporation -	Related party -	741,594,000 15,957,600	$ 6,169,287 142,352	88,453,125 -	$ 887,813 -	- 12,668,000	$ - 2,025,656	$ - 529,983	$ - Note 5	830,047,125 3,289,600	$ 6,860,325 241,555

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

Note 2: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank.

Note 3: Aggregate purchases and sales amounts should be calculated separately at their market values to verify whether they individually reach $300 million or 20% of paid-in capital or more.

Note 4: Paid-in capital referred to herein is the paid-in capital of parent company. In case that shares were issued with no par value or a par value other than NT$10 per share, the 20% of paid-in capital level shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Note 5:The amount of gains or losses on disposal which are reclassified as retained earnigs is $1,433,929 .

Table 4, Page 1

Formosa Chemicals and Fibre Corporation Acquisition of Individual Real Estate at Costs of at Least NT$300 Million or 20% of the Paid-in Capital For the year ended December 31, 2021

Table 5

Expressed in thousands of NTD (Except as otherwise indicated)

Information on Previous Title Transfer if Counterparty is a Related Party

Property Event Date Transaction Amount Payment Status Counterparty Relationship Real estate acquired by	Property Owner	Relationship	Transaction Date Amount	PricingReference	Purpose of Acquisition	Other Terms
Formosa Biomedical Technology Corp. Land on Land No. 562, Subsection 2, Fulin Sec., Shilin Dist., Taipei City and 2 units and 9 indoor parking spaces on No. 518, Sec. 5, Zhongshan N. Rd., Shilin Dist., Taipei City Note $ 510,717 paid Natural person -	-	-	- $ -	Bargaining	In consideration of future operational development needs	-

Note: On April 28, 2021, the Board of Directors resolved to acquire the asset, and the price of the asset includes related fees, and that was paid.

Table 5, Page 1

Formosa Chemicals and Fibre Corporation

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more

For the year ended December 31, 2021

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Differences in transaction terms compared to third party transactions（Note 1）	Balance Percentage of total notes/accounts receivable (payable) Notes/accounts receivable(payable) Footnote （Note 1）
			Purchases (sales) Amount Percentage of total purchases (sales) Credit term	Unitprice Credit term
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company Formosa Biomedical Technology Corp. The Company	Formosa Plastics Corp. Nan Ya Plastics Corp. Formosa Taffeta (Dong Nai) Corp. Formosa Petrochemical Corp. Formosa Chemicals Industries (Ningbo) Co., Ltd Formosa Industries Corp. PFG Fiber Glass Corp. Formosa Idemitsu Petrochemical Corp. Formosa Plastics Corp., U.S.A. Formosa Plastics Corp. Nan Ya Plastics Corp. Formosa Petrochemical Corp. Nan Ya Technology Corp. Formosa Taffeta Co., Ltd.	Other related party Other related party Subsidiary Associate Subsidiary Subsidiary Other related party Subsidiary Other related party Other related party Other related party Associate Other related party Subsidiary	Sales 2,582,896) ($ 1) ( 30 days Sales 30,131,334) ( 12) ( 30 days Sales 431,515) ( - 60 days Sales 29,088,177) ( 12) ( 30 days Sales 32,317,715) ( 13) ( 90 days Sales 3,839,337) ( 2) ( 30 days Sales 471,319) ( - 30 days Sales 17,967,308) ( 7) ( 30 days Sales 1,998,320) ( 1) ( 30 days Purchases 6,797,321 3 30 days Purchases 14,105,112 7 30 days Purchases 141,866,388 70 30 days Sales 190,011) ( 7) ( 30 days Sales 60 days 1,395,375) ( 1) (	$ - - - - - - - - - - - - - - - - - - - - - - - - - - - -	212,832 $ 1 - 2,752,754 11 - Notes receivable 318,393 55 - Accounts receivable 163,800 1 - 100,677 - - 2,704,029 11 - 9,143,083 36 - 633,434 3 - 37,337 - - 1,485,620 6 - 373,862 1 - 593,147) ( 3) ( - 1,018,160) ( 5) ( - 13,877,906) ( 74) ( - 16 -

Table 6, Page 1

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Differences in transaction terms compared to third party transactions（Note 1）	Balance Percentage of total notes/accounts receivable (payable) Notes/accounts receivable(payable) Footnote （Note 1）
			Purchases (sales) Amount Percentage of total purchases (sales) Credit term	Unitprice Credit term
Formosa INEOS Chemicals Corp. Formosa INEOS Chemicals Corp. Formosa INEOS Chemicals Corp. Formosa INEOS Chemicals Corp. Formosa INEOS Chemicals Corp. Formosa Power (Ningbo) Co., Ltd. Formosa Power (Ningbo) Co., Ltd. Formosa Power (Ningbo) Co., Ltd. Formosa Chemicals Industries (Ningbo) Co., Ltd Formosa Chemicals Industries (Ningbo) Co., Ltd Formosa Chemicals Industries (Ningbo) Co., Ltd Formosa Industries Corp. Formosa Industries Corp. Formosa Industries Corp. Formosa Industries Corp. Formosa Industries Corp.	The Company INEOS Acetyls (Malaysia) Sdn Bhd Nan Ya Plastics Corp. Formosa Petrochemical Corp. Formosa Petrochemical Corp. Formosa Chemicals Industries (Ningbo) Co., Ltd. Formosa Plastics (Ningbo) Co., Ltd. Nan Ya Plastics (Ningbo) Corp. Nan Ya Plastics (Ningbo) Corp. Formosa Plastics Corp. Formosa Petrochemical Corp. The Company Nan Ya Plastics Corp. Formosa Taffeta (Zhongshan) Corp. Formosa Taffeta (Dong Nai) Corp. Formosa Taffeta (Long An) Corp.	Parent company Associate Other related party Associate Associate Associate Other related party Other related party Other related party Other related party Associate Parent company Other related party Associate Associate Associate	Sales 1,636,094) ($ 17) ( 30 days Sales 1,085,136) ( 11) ( 90 days after shipped Sales 265,805) ( 3) ( 30 days Sales 747,251) ( 8) ( 30 days Purchases 2,261,419 52 45 days Sales 3,136,337) ( 53) ( 30 days Sales 2,113,483) ( 36) ( 30 days Sales 455,732) ( 8) ( 30 days Sales 6,862,991) ( 7) ( 90 days Purchases 2,096,043 3 90 days Purchases 2,714,948 3 90 days Sales 1,210,785) ( 5) ( 60 days Sales 449,274) ( 2) ( 30 days Sales 174,699) ( 1) ( 90 days Sales 637,590) ( 3) ( 60 days Sales 290,817) ( 1) ( 60 days	$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	166,645 $ 9 - 807,027 43 - 24,948 1 - 81,720 4 - 234,964) ( 83) ( - 290,460 51 - 217,647 39 - 46,036 8 - 732,364 5 - 508,970) ( 4) ( - 298,787) ( 2) ( - 202,626 9 - 31,697 1 - 53,416 2 168,772 7 - 85,343 4 -

Table 6, Page 2

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Differences in transaction terms compared to third party transactions（Note 1）	Balance Percentage of total notes/accounts receivable (payable) Notes/accounts receivable(payable) Footnote （Note 1）
			Purchases (sales) Amount Percentage of total purchases (sales) Credit term	Unitprice Credit term
Formosa Industries Corp. Formosa Industries Corp. Formosa Industries Corp. Formosa Idemitsu Petrochemical Corp. Formosa Idemitsu Petrochemical Corp. Formosa Idemitsu Petrochemical Corp. Formosa Idemitsu Petrochemical Corp. Formosa Idemitsu Petrochemical Corp. Formosa Idemitsu Petrochemical Corp. Formosa Idemitsu Petrochemical Corp. Formosa Idemitsu Petrochemical Corp. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd.	Formosa Plastics Corp. Nan Ya Plastics Corp. Nan Ya Draw-Textured Yarn (Kunshan) Co.,Ltd. The Company Idemitsu Kosan Co., Ltd. Idemitsu Chemicals Taiwan Corp. Idemitsu Kosan Co., Ltd. Idemitsu Chemicals (Hong Kong) Co., Ltd. Idemitsu Chemicals (U.S.A.) Co., Ltd. Idemitsu Chemicals Southeast Asia Pte Ltd. Formosa Chemicals Industries (Ningbo) Co., Ltd Kuang Yueh Enterprise Co., Ltd. Formosa Taffeta (Dong Nai) Corp. Yugen Co., Ltd. Formosa Petrochemical Corp.	Other related party Other related party Other related party Parent company Associate Associate Associate Associate Associate Associate Associate Associate Associate Other related party Other related party	Purchases 452,925 $ 2 30 days Purchases 2,282,865 10 30 days Purchases 316,101 1 60 days Sales 3,488,401) ( 18) ( 30 days Sales 470,295) ( 2) ( 30 days after closing date Sales 843,529) ( 4) ( 30 days after closing date Sales 1,058,003) ( 5) ( 30 days after closing date Sales 943,793) ( 5) ( 30 days after closing date Sales 263,350) ( 1) ( 30 days after closing date Sales 132,469) ( 1) ( 30 days after closing date Sales 104,137) ( 1) ( 90 days Sales 286,180) ( 1) ( Pay by mail transfer 60 days after delivery Sales 236,515) ( 1) ( 60 days after monthly billings Sales 192,900) ( 1) ( Pay 120 days after delivery Purchases 9,640,038 48 Pay every 15 days by mail transfer	$ - - - - - - - - - - - - - - - - - - - - - - - - - - - -	55,696) ($ 3) ( - 340,825) ( 16) ( - 18,123) ( 1) ( 163,743 12 - 37,365 3 - 54,958 4 - 150,705 11 - 139,297 10 - 56,805 4 - 17,007 1 34,212 3 15,599 1 - 56,300 2 53,332 2 - 425,208) ( 51) ( -

Table 6, Page 3

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Differences in transaction terms compared to third party transactions（Note 1）	Balance Percentage of total notes/accounts receivable (payable) Notes/accounts receivable(payable) Footnote （Note 1）
			Purchases (sales) Amount Percentage of total purchases (sales) Credit term	Unitprice Credit term
Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta (Changshu) Co., Ltd. Formosa Taffeta (Zhong Shan) Co., Ltd. Formosa Taffeta (Zhong Shan) Co., Ltd. Formosa Taffeta (Zhong Shan) Co., Ltd. Formosa Taffeta (Dong Nai) Co., Ltd. Formosa Taffeta (Dong Nai) Co., Ltd. Formosa Taffeta (Dong Nai) Co., Ltd. Formosa Taffeta (Dong Nai) Co., Ltd. Formosa Taffeta (Vietnam) Co., Ltd. Formosa Taffeta (Vietnam) Co., Ltd.	Nan Ya Plastics Corp. Formosa Plastics Corp. Kuang Yueh (Vietnam) Co., Ltd. Formosa Taffeta (Changshu) Co., Ltd. Formosa Taffeta Co., Ltd. Nan Ya Draw-Textured Yarn(Kunshan)Co.,Ltd. Formosa Taffeta (Vietnam) Co., Ltd. Kuang Yueh (Vietnam) Co., Ltd. Formosa Taffeta (Zhong Shan) Co., Ltd. Nan Ya Plastics Corp. Kuang Yueh (Vietnam) Co., Ltd. Formosa Industries Corp.	Other related party Other related party Other related party Associate Associate Other related party Associate Other related party Associate Other related party Other related parties Associate	Purchases 740,561 $ 4 Pay by mail transfer on the 15th of the following month Purchases 202,841 1 Pay by mail transfer on the 15th of the following month Sales 116,810) ( 9) ( Pay by mail transfer 60 days after delivery Sales 352,567) ( 20) ( 60 days after monthly billings Sales 113,968) ( 7) ( 60 days after monthly billings Purchases 126,957 11 60 days after monthly billings Sales 377,718) ( 9) ( 60 days after monthly billings Sales 170,501) ( 4) ( 60 days after monthly billings Sales 103,649) ( 2) ( 60 days after monthly billings Purchases 154,038 5 60 days after monthly billings Sales 139,711) ( 6) ( 60 days after monthly billings Purchases 258,389 15 60 days after monthly billings	$ - - - - - - - - - - - - - - - - - - - - - - - -	($ 60,118) 7) ( - 13,651) ( 2) ( - 1,615 1 - 103,585 33 - 21,287 7 - 28,958) ( 41) ( - 183,293 17 - 30,079 3 - 19,241 2 - 17,451) ( 7) ( - 50,290 11 - 38,453) ( 19) ( -

Note 1: The disclosed transaction is the revenue side and related transactions are no longer disclosed.

Table 6, Page 4

Table 7

Formosa Chemicals and Fibre Corporation

Receivables from related parties reaching $100 million or 20% of paid-in capital or more

For the year ended December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2021 （Note 1）	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
The Company The Company The Company The Company The Company The Company The Company Formosa INEOS Chemicals Corp. Formosa INEOS Chemicals Corp. Formosa Idemitsu Petrochemical Corp. Formosa Idemitsu Petrochemical Corp. Formosa Idemitsu Petrochemical Corp. Formosa Power (Ningbo) Co., Ltd. Formosa Power (Ningbo) Co., Ltd. Formosa Chemicals Industries (Ningbo) Co., Ltd. Formosa Industries Corp. The Company The Company	Formosa Plastics Corp. Nan Ya Plastics Corp. Formosa Taffeta (Dong Nai) Co., Ltd. Formosa Industries Corp. Formosa Chemicals Industries (Ningbo) Co., Ltd. Formosa Idemitsu Petrochemical Corp. Formosa Plastic Corp. U.S.A. The Company INEOS Acetyls (Malaysia) Sdn Bhd Idemitsu Chemicals (Hong Kong) Co., Ltd. The Company Idemitsu Kosan Co., Ltd. Formosa Chemicals Industries (Ningbo) Co., Ltd. Formosa Plastics (Ningbo) Co., Ltd. Nan Ya Plastics (Ningbo) Corp. The Company Formosa Taffeta Co., Ltd. Formosa Petrochemical Corp.	Other related party Other related party Subsidiary Subsidiary Subsidiary Subsidiary Associate Parent company Associate Associate Parent company Associate Associate Other related party Other related party Parent company Subsidiary Associate	212,832 $ 2,752,754 Notes receivable 318,393 Accounts receivable 163,800 100,677 Accounts receivable 2,704,029 Other receivables 196,123 633,434 9,143,083 1,485,620 373,862 166,645 807,027 139,297 163,743 150,705 290,460 217,647 732,364 202,626	10.26 12.33 4.73 8.00 4.41 10.68 8.79 10.95 1.89 7.70 14.82 10.20 11.41 9.81 11.06 9.45 3.66 13.26	- $ - - - - - - - - - - - - - - - - -	- - - - - - - - - - - - - - - - - -	212,832 $ 2,752,754 133,490 138,999 40,042 2,671,443 180,586 334,384 2,908,549 1,485,620 150,880 156,509 - 121,808 163,743 120,558 207,692 217,647 732,364 130,721	- $ - - - - - - - - - - - - - - - - - - -

Table 7, Page 1

Creditor	Counterparty	Relationship with the counterparty	Balance as at December 31, 2021 （Note 1）	Turnover rate	Overdue receivables	Overdue receivables	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Formosa Industries Corp. Formosa Taffeta (Zhong Shan) Co., Ltd. Formosa Taffeta (Dong Nai) Corp.	Formosa Taffeta (Dong Nai) Co., Ltd. Formosa Taffeta (Changshu) Co., Ltd. Formosa Taffeta (Vietnam) Co., Ltd.	Associate Associate Associate	168,772 $ 103,585 183,293	4.61 3.46 3.41	- $ -	- -	56,931 $ 46,493 70,496	- $ -

Note 1: Fill in separately the balances of accounts receivable–related parties, notes receivable–related parties, other receivables–related parties.

Table 7, Page 2

Formosa Chemicals and Fibre Corporation

Table 8

Significant inter-company transactions during the reporting period

For the year ended December 31, 2021

Expressed in thousands of NTD

(Except as otherwise indicated)

Number (Note 1)	Companyname	Counterparty	Relationship (Note 2)			Transaction
				General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets(Note 3)
0 0	The Company The Company	Formosa Chemicals Industries (Ningbo) Co., Ltd. Formosa Idemitsu Petrochemical Corp.	1 1	Sales revenue Sales revenue	32,317,715) ($ 17,967,308) (	In regular terms In regular terms	(9) (5)

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

(1) Parent company is ‘0’.

(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories:

(1) Parent company to subsidiary.

(2) Subsidiary to parent company.

• (3) Subsidiary to subsidiary.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: If the transaction amount in this sheet reaches 3% of consolidated operating income or total assets, it is considered material.

Table 8, Page 1

Formosa Chemicals and Fibre Corporation

Table 9

Expressed in thousands of NTD (Except as otherwise indicated)

Information on investees (Excluding those in Mainland China)

For the year ended December 31, 2021

Investor	Investee （Note 1,2）	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2021	Shares held as at December 31,2021	Shares held as at December 31,2021	Net profit (loss) of the investee for the year ended December 31,2020	Investment income (loss) recognised by the Company for the year ended December 31,2021	Footnote
				Balance as at December31,2021	Balance as at December31,2020	Numberofshares	Ownership (%)	Bookvalue
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company	Tah Shin Spinning Corp. Formosa Taffeta Co., Ltd. Formosa Heavy Industries Corp. Formosa Fairway Corporation Formosa Plastics Transport Corp. Formosa Petrochemical Corp. Mai-Liao Power Corp. FCFC Investment Corp. (Cayman) Hwa Ya Science Park Management Consulting Co., Ltd. Chia-Nan Enterprise Corporation Formosa Idemitsu Petrochemical Corp. Formosa Industries Corp., Vietnam Formosa INEOS Chemicals Corp. Formosa Environmental Technology Co. Formosa Biomedical Technology Corp.	Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Cayman Islands Taiwan Taiwan Taiwan Vietnam Taiwan Taiwan Taiwan	Spinning Spinning Machinery Transportation Transportation Chemistry Electricity generation Investments Management Electricity generation Wholesale and retail of petrochemical and plastic raw materials Textile, polyester staple fibre, cotton Chemistry, international of petrochemistry Disposal of wastes and sewage Manufacturing and sale of cosmetics	- $ 719,003 2,497,721 33,320 299,272 25,842,468 5,985,531 34,012,602 340 370,561 299,999 8,435,801 1,201,500 417,145 1,566,879	5,549 $ 719,003 2,497,721 33,320 299,272 25,842,468 5,985,531 34,012,602 340 370,561 299,999 8,435,801 1,201,500 417,145 1,566,879	- 630,022,431 656,516,684 4,697,951 6,566,384 2,300,799,801 764,201,101 56,000 33,000 21,163,000 60,000,000 - 120,150,000 41,714,475 147,556,136	- 37.40 32.91 33.33 33.33 24.15 24.94 100.00 33.00 51.00 50.00 42.50 50.00 24.34 88.59	- $ 22,859,755 7,694,115 49,214 1,250,682 86,080,723 12,819,210 67,879,918 3,195 339,591 1,744,062 7,314,049 3,227,258 228,831 3,477,997	- $ 2,143,167 226,233 63,697) ( 240,384 49,401,403 308,781 7,459,324 1,933 1,564) ( 1,022,517 1,402,858 3,558,513 10,018 311,833	- $ 790,124 74,723 21,230) ( 80,120 11,968,645 77,040 7,459,324 638 798) ( 508,600 596,214 1,748,798 2,438 273,579	- - - - - - - - - - - - - - -

Table 9, Page 1

Investor	Investee （Note 1,2）	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2021	Shares held as at December 31,2021	Shares held as at December 31,2021	Net profit (loss) of the investee for the year ended December 31,2020	Investment income (loss) recognised by the Company for the year ended December 31,2021	Footnote
				Balance as at December31,2021	Balance as at December31,2020	Numberofshares	Ownership (%)	Bookvalue
The Company The Company The Company The Company The Company The Company The Company FCFC Investment Corp. (Cayman) Formosa Biomedical Technology Corp. Formosa Biomedical Technology Corp. Formosa Biomedical Technology Corp. Formosa Biomedical Technology Corp.	Formosa FCFC Carpet Corp. Guo Su Plastic Industry Co., Ltd. Formosa Synthetic Rubber (Hong Kong) Co., Ltd. Formosa Resources Corporation Formosa Group Corp. (Cayman) Formosa Construction Corp. FG INC. Formosa Chemicals & Fibre (Hong Kong) Co., Ltd. Beyoung International Corp. Hong Jing Resources Corp. Formosa Biomedical Technology (Samoa) Co., Ltd. Formosa Waters Technology Co., Ltd.	Taiwan Taiwan Hong Kong Taiwan Cayman Islands Taiwan United States Hong Kong Taiwan Taiwan Samoa Taiwan	Yarn spinning mills, finishing of textiles and carpet manufacturing Manufacture of synthetic resin and plastic products Manufacturing of synthetic rubber Mining industry and its trading, wholesale of chemical material and international trading Investments Development and sale of rebuilt housing, buildings and plants under urban redevelopment Investments Investments International trading Recycle of spent catalyst Investments 1.Industrial Catalyst Manufacturing 2.Wholesale of Other Chemical Products	300,000 $ 48,469 4,214,914 8,303,053 377 600,000 3,413,031 29,959,815 90,000 476,196 29,610 7,650	300,000 $ - 4,214,914 7,415,940 377 600,000 3,413,031 29,959,815 90,000 476,196 29,610 7,650	22,037,185 1,875,000 138,333,334 830,047,125 12,500 60,000,000 6,000 - 467,400 27,336,218 - 765,001	100.00 32.89 33.34 25.00 25.00 33.33 30.00 100.00 30.00 71.00 100.00 57.00	187,404 $ 48,469 2,182,064 6,860,325 662,099 593,734 2,993,906 52,306,068 95,492 636,350 2,566 22,670	10,598) ($ - 504,051) ( 298,994 127,467 25,775 98,230) ( 7,634,374 3,881 134,798 2,379 20,986	10,600) ($ - 168,050) ( 71,467 31,867 8,591 30,571) ( 7,634,374 1,164 95,707 2,379 11,962	- - - - - - - - - - - -

Table 9, Page 2

Investor	Investee （Note 1,2）	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2021	Shares held as at December 31,2021	Shares held as at December 31,2021	Net profit (loss) of the investee for the year ended December 31,2020	Investment income (loss) recognised by the Company for the year ended December 31,2021	Footnote
				Balance as at December31,2021	Balance as at December31,2020	Numberofshares	Ownership (%)	Bookvalue
Formosa Biomedical Technology Corp. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd.	Formosa Bio& Energy Crop. (Japan) Formosa Development Co., Ltd. Formosa Advanced Technologies Co., Ltd. Formosa Taffeta (Hong Kong) Co., Ltd. Formosa Taffeta (Vietnam) Co., Ltd. Kuang Yueh Co., Ltd. Formosa Taffeta (Dong Nai) Co., Ltd. Formosa Industries Corp., Ltd. Schoeller Textil AG	Japan Taiwan Taiwan Hong Kong Vietnam Taiwan Vietnam Vietnam Switzerland	Manufacturing and sale of battery energy storage systems and related products 1.Handling urban land consolidation 2.Development, rent and sale of industrial plants, residences and building IC assembly, testing and modules Sale of spun fabrics and filament textile Production, processing, further processing various yam and cotton cloth, dyeing and finishing clothes, curtains, towels, bed covers and carpets Processing and production of ready-to- wear, processing and trading of cotton cloth, and import and export of the aforementioned products Production, processing and sale of various dyeing and finishing textiles and yarn Synthetic fiber, spinning, weaving, dyeing and finishing and electricity generation Textile R&D, production and sales	5,018 $ 114,912 1,762,711 1,356,862 1,709,221 213,771 2,590,434 1,987,122 1,285,507	5,018 $ 114,912 1,762,711 1,356,862 1,709,221 213,771 2,590,434 1,987,122 1,285,507	18,105 16,100,000 135,686,472 - - 18,595,352 - - 21,874	51.00 100.00 30.68 100.00 100.00 17.99 100.00 10.00 50.00	3,535 $ 186,160 5,135,358 1,202,931 2,095,015 1,237,283 2,524,546 1,825,888 1,030,378	148) ($ 12,652) ( 1,557,008 26,029 37,801 630,502 335,275 1,402,858 277,882) (	76) ($ 14,846) ( 477,748 26,029 37,801 144,254 335,275 140,286 169,034) (	- - - - - - - - -

Table 9, Page 3

Investor	Investee （Note 1,2）	Location	Main business activities	Initial investment amount	Initial investment amount	Shares held as at December 31,2021	Shares held as at December 31,2021	Shares held as at December 31,2021	Net profit (loss) of the investee for the year ended December 31,2020	Investment income (loss) recognised by the Company for the year ended December 31,2021	Footnote
				Balance as at December31,2021	Balance as at December31,2020	Numberofshares	Ownership (%)	Bookvalue
Formosa Taffeta Co., Ltd. Formosa Development Co., Ltd. Formosa Development Co., Ltd. Public More Internation Co., Ltd.	Nan Ya Optical Corp. Formosa Advanced Technologies Co., Ltd. Public More Internation Co., Ltd. Kuang Yueh Co., Ltd.	Taiwan Taiwan Taiwan Taiwan	LED lighting system, lighting piping engineering design planning, manufacturing and installation IC assembly, testing and modules Employment service, manpower allocation and agency service Processing and production of ready-to- wear, processing and trading of cotton cloth, and import and export of the aforementioned products	263,327 $ 21,119 5,000 1,069	263,327 $ 21,119 5,000 1,069	7,013,871 469,500 - 10,000	15.22 0.11 100.00 0.01	290,161 $ 17,577 14,053 1,070	95,906 $ 1,557,008 5,797 630,502	14,594 $ 1,868 5,797 75	- - - -

• Note 1: If a public company is equipped with an overseas holding company and takes consolidated financial report as the main financial report according to the local law rules, it can only disclose the information of the overseas holding company about the disclosure of related overseas investee information.

Note 2: If situation does not belong to Note 1, fill in the columns according to the following regulations:

• (1)The columns of 'Investee', 'Location', 'Main business activities', Initial investment amount' and 'Shares held as at December 31, 2021 should fill orderly in the Company's (public company's) information on investees and every directly or

• indirectly controlled investee's investment information, and note the relationship between the Company (public company) and its investee each (ex. direct subsidiary or indirect subsidiary) in the 'footnote' column.

• (2)The 'Net profit (loss) of the investee for the year ended December 31, 2021 column should fill in amount of net profit (loss) of the investee for this period.

• (3)The 'Investment income (loss) recognised by the Company for the year ended December 31, 2021 column should fill in the Company (public company) recognised investment income (loss) of its direct subsidiary and

• recognised investment income (loss) of its investee accounted for under the equity method for this period. When filling in recognised investment income (loss) of its direct subsidiary, the Company (public company) should confirm that direct subsidiary's net profit (loss) for this period has included its investment income (loss) which shall be recognised by regulations.

Table 9, Page 4

Formosa Chemicals and Fibre Corporation

Table 10

Information on investments in Mainland China

For the year ended December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2021	Amount remitted Mainland Ch remitted back to year ended Dec	from Taiwan to ina/Amount Taiwan for the ember 31,2021	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2021	Net income of investee for the year ended December 31, 2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31,2021	Book value of investments in Mainland China as of December 31,2021	Accumulated amount of investment income remitted back to Taiwan as of December 31,2021	Footnote
					Remitted to MainlandChina	Remitted back to Taiwan
Formosa Power (Ningbo) Co., Ltd. Formosa Chemicals Industries (Ningbo) Co., Ltd. Formosa Synthetic Rubber (Ningbo) Co., Ltd. Formosa Biomedical Trading (Shanghai) Co., Ltd. Formosa Taffeta (Zhong Shan) Co., Ltd. Formosa Taffeta (Changshu) Co., Ltd.	Cogeneration power generation business Production and market of PTA Production and sale of synthetic rubber Investments Production and sale of polyester and polyamide fabrics Weaving and dyeing as well as post dressing of high-grade loomage face fabric	4,834,511 $ 35,575,404 12,777,478 29,610 1,402,085 1,302,019	1 1 4 1 1 2	4,051,414 $ 29,959,815 4,163,050 29,610 1,402,085 1,334,739	- $ - - - - -	- $ - - - - -	4,051,414 $ 29,959,815 4,163,050 29,610 1,402,085 1,334,739	175,050) ($ 7,634,374 504,051) ( 2,379 144,023 24,149	100.00 100.00 33.33 100.00 100.00 100.00	175,050) ($ 7,634,374 168,051) ( 2,379 144,023 24,149	15,815,577 $ 52,306,068 2,182,063 2,566 1,923,461 1,091,320	- $ - - - 43,914 -	- - - - 3 4

Table 10, Page 1

Formosa Chemicals and Fibre Corporation

Information on investments in Mainland China

Table 10

For the year ended December 31, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Investee in Mainland China	Main business activities	Paid-in capital	Investment method （Note 1）	Accumulated amount of remittance from Taiwan to Mainland China as of January 1, 2021	Amount remitted Mainland Ch remitted back to year ended Dec	from Taiwan to ina/Amount Taiwan for the ember 31,2021	Accumulated amount of remittance from Taiwan to Mainland China as of December 31,2021	Net income of investee for the year ended December 31, 2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the year ended December 31,2021	Book value of investments in Mainland China as of December 31,2021	Accumulated amount of investment income remitted back to Taiwan as of December 31,2021	Footnote
					Remitted to MainlandChina	Remitted back to Taiwan
Changshu Yu Yuan Development Co., Ltd.	Building and selling real estate	70,788 $	2	- $	- $	- $	- $	2,379 $	40.78	970 $	17,478 $	- $	5

Note 1: Investment methods are classified into the following three categories.

(1) Directly invest in a company in Mainland China..

(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China.

• (3) Others

(4) Formosa Power (Ningbo) Co., Ltd. is an investee company in Mainland China through the Company's investee - FCFC Investment Corp. (Cayman).

Formosa Chemicals Industries (Ningbo) Co., Ltd., Formosa PS (Ningbo) Co., Ltd., Formosa ABS Plastics (Ningbo) Co., Ltd. and Formosa Phenol (Ningbo) Limited Co. were investee companies in Mainland China through the Company's investee - FCFC Investment Corp. (Cayman). After share structure adjustment in 2008 and 2014, the parent company of the 4 investees became Formosa Chemicals & Fibre (Hong Kong) Co., Ltd. Formosa Chemicals & Fibre (Hong Kong) Co., Ltd. is a wholly-owned subsidiary through reinvestment of FCFC Investment Corp. (Cayman).

The Company reorganised its investment structure through a merger of 4 investees in Mainland China, namely, Formosa Chemicals Industries (Ningbo) Co., Ltd., Formosa ABS Plastics (Ningbo) Co., Ltd., Formosa PS (Ningbo) Co., Ltd. and Formosa Phenol (Ningbo) Limited Co. After the effective date of January 2, 2018, Formosa Chemicals Industries (Ningbo) Co., Ltd. was the surviving entity. The proposal had been resolved by Board of Directors on November 4, 2016.

Formosa Synthetic Rubber (Ningbo) Co., Ltd. is an investee company in Mainland China through the investee - Formosa Synthetic Rubber (Hong Kong) Co., Ltd.. Formosa Biomedical Trading (Shanghai) Co., Ltd. is an investee company in Mainland China through the investee - Formosa Biomedical (Samoa) Co., Ltd..

Formosa Taffeta (Changshu) Co., Ltd. is an investee company in Mainland China through the subsidiary - Formosa Taffeta (Hong Kong) Co., Ltd..

The Company is the surviving company after the consolidation of Changshu Yu Yuan Development.Co.,Ltd. and Changshu Fushun Enterprise Management Co.,Ltd. It’s paid-in capital is RMB$13,592,920. Note 2: Investment income recognized in current period is based on the financial reports audited by CPAs of the Taiwan parent company.

Note 3: The Company's paid-in capital, accumulative remittance from Taiwan as of January 1, 2021 and December 31, 2021 all amount to US$46,400,000.

(The remittance of US$46,388,800 and the capitalised value of machinery and equipment of US$11,200)

Note 4: The Company's paid-in capital, accumulative remittance from Taiwan as of January 1, 2021 and December 31, 2021 all amount to US$42,000,000. In order to effectively utilise the residential land of the Company, Formosa Chemicals & Fibre Co. split the residential land and established Changshu Fushun Enterprise Management Co., Ltd. by capitalizing the residential land in the first quarter, 2015. Formosa Chemicals & Fibre Co. reduced the capital of Formosa Taffeta (Changshu) Co., Ltd. by US$900,000, so the Company's paid-in capital amounts to $41,100,000.

Note 5: The Company is the surviving company after the merger with Changshu Yu Yuan Development.Co., Ltd. in the third quarter, 2015. The paid-in capital of the Company is RMB$13,592,920.

Accumulated Investment Ceiling on amount of amount approved investments in remittance from by the Investment Mainland China Taiwan to Commission of imposed by the Mainland China the Ministry of Investment as of December Economic Affairs Commission of Company name 31, 2021 (MOEA) MOEA The Company $ 38,174,279 $ 39,420,315 Note

Note: Corporations that are qualified with operations headquarters certification issued by the Industrial Development Bureau, Ministry of Economic Affairs, R.O.C.

Table 10, Page 2

Formosa Chemicals and Fibre Corporation

Significant transactions conducted with investees in Mainland China directly or indirectly through other companies in the third areas

For the year ended December 31, 2021

Table 11 Investee in Mainland China	Sale(purchase)	Sale(purchase)	Propertytransaction	Propertytransaction	Accounts receivable (payable)	Accounts receivable (payable)	Provision of endorsements/guarantees or collaterals	Provision of endorsements/guarantees or collaterals		Financing	Financing	Interest during the year ended December 31,2021 Expressed in thousands of NTD (Except as otherwise indicated) Others	Interest during the year ended December 31,2021 Expressed in thousands of NTD (Except as otherwise indicated) Others
	Amount	%	Amount	%	Balance at December 31, 2021	%	Balance at December 31, 2021	Purpose	Maximum balance during the year ended December 31,2021	Balance at December 31,2021	Interest rate	Interest during the year ended December 31,2021
Formosa Taffeta (Zhongshan) Co., Ltd. Formosa Taffeta (Changshu) Co., Ltd.	$ 12,151 22,958	0.05 0.09	$ - -	- -	$ 5,982 2,415	0.26 0.11	$ 913,440 1,522,400	For short-term loans from financial institutions For short-term loans from financial institutions	$ - -	- $ -	- -	- $ -	- -

Table 11, Page 1

Formosa Chemicals and Fibre Corporation Information on Major Shareholders For the year ended December 31, 2021

	Formosa Chemicals and Fibre Corporation Information on Major Shareholders For the year ended December 31, 2021	Formosa Chemicals and Fibre Corporation Information on Major Shareholders For the year ended December 31, 2021
Name of Major Shareholder Table 12	Expressed in thousands of NTD (Except as otherwise indicated) Shares
	Number of Shares	Ownership (%)
Chang Gung Medical Foundation Qin's International Investment Holdings Ltd.	1,089,142,009 371,938,814	18.58% 6.35%

Table 12, Page 1

FORMOSA CHEMICALS & FIBRE CORPORATION

Cash and cash equivalents

December 31, 2021

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Statement 1 (Expressed in thousands of New Taiwan Dollars)
Items Description Amount
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Items	Description			Amount
Cash on hand			$	70
Revolving funds				242
Cash in banks	Checking deposits and demand deposits			2,789
	Foreign currency demand deposits:	USD, exchange rate: $27.69		2,778,088
		EUR, exchange rate: $31.36		4,545
		JPY, exchange rate: $0.24		5,192
		RMB, exchange rate: $4.35		240
Total			$	2,791,166

Statement 1, Page 1

FORMOSA CHEMICALS & FIBRE CORPORATION

Statement of changes in financial assets measured at fair value through other comprehensive income Year ended December 31, 2021

Statement 2 (Expressed in thousands of New Taiwan Dollars)

Investee	BeginningBalance	BeginningBalance	BeginningBalance	Addition	Addition	Addition	Decrease	Decrease	Decrease		EndingBalance	EndingBalance			Fair Value Amount	Collateral or endorsement provided
	No. ofshares		Amount	No. ofshares		Amount	No. ofshares		Amount	No. ofshares	Percentage of Ownership		Amount
Current items: Formosa Plastics Corp. Nan Ya Plastics Corp. Nan Ya Technology Corp. Formosan Union Chemical Corp. Asia Pacific Investment Corp. Subtotal Adjustments for change in value of financial assets Total Non-current items: Mai-Liao Harbor Administration Corp. Formosa Plastic Corp. U.S.A. Central Leasing Corp. Taiwan Stock Exchange Corporation. Taiwan Aerospace Corp. Yi-Jih Development Corp. Chinese Television System Corp. Formosa Plastics Maritime Corp. Formosa Development Corp. Formosa Network Technology Corp. Formosa Plastics Marine Corp.	486,978,693 413,327,750 334,815,409 14,723,422 63,621,500 39,562,740 8,999 1,778,611 15,002,811 1,070,151 63,174 2,376,202 355,880 18,255,356 2,925,000 2,428,500		9,155,094 $ 4,231,685 10,461,715 16,160 725,839 24,590,493 83,799,612 108,390,105 $ 539,260 $ 818,316 - 1,800 10,702 690 38,419 1,750 90,010 13,331 15,000	- - - - - - - - 1,800,337 - - - - 832,444 - -		- $ - - - - - 6,876,129 6,876,129 $ - $ - - - - - - - - - -	- - - - - - - - - - - - - - - -		- $ - - - - - - - $ - $ - - - - - - - - - -	486,978,693 413,327,750 334,815,409 14,723,422 63,621,500 39,562,740 8,999 1,778,611 16,803,148 1,070,151 63,174 2,376,202 355,880 19,087,800 2,925,000 2,428,500	7.65% 5.21% 10.82% 3.09% 14.97% 17.98% 2.92% 1.07% 2.00% 0.79% 1.51% 1.41% 18.22% 18.00% 12.50% 15.00%		9,155,094 $ 4,231,685 10,461,715 16,160 725,839 24,590,493 90,675,741 115,266,234 $ 539,260 $ 818,316 - 1,800 10,702 690 38,419 1,750 90,010 13,331 15,000		50,945,785 $ 35,298,190 26,149,083 340,111 2,833,065 115,566,234 $ 1,077,689 $ 7,198,379 - 3,308,204 15,378 16,998 52,585 370,813 284,026 158,126 760,970	None " " " " " None " " " " " " " " " "

Statement 2, Page 1

FORMOSA CHEMICALS & FIBRE CORPORATION

Statement of changes in financial assets measured at fair value through other comprehensive income (Cont.) Year ended December 31, 2021

Statement 2 (Expressed in thousands of New Taiwan Dollars)

Investee	No. ofshares Amount 2,622 856,948 $ 3,750,000 37,500 2,500,000 25,000 621,178,219 17,739,777 20,188,503 1,170,812) ( 19,017,691 $ BeginningBalance	Addition	Addition	Addition	Decrease	Decrease	Decrease	No. ofshares	Percentage of Ownership 19.00% 3.91% 1.97% 11.43% EndingBalance	Amount 856,948 $ 37,500 25,000 17,739,777 20,188,503 11,699,001 31,887,504 $		Fair Value Amount	Collateral or endorsement provided
		No. ofshares		Amount	No. ofshares		Amount
Formosa Ocean Group Marine Investment Corp. Guangyuan Investment Corp. Mega Growth Venture Capital Co., Ltd. Formosa Ha Tinh (Cayman) Limited Subtotal Adjustments for change in value of financial assets Total		- - - -		- $ - - - - 12,869,813 12,869,813 $	- - - -		- $ - - - - - - $	2,622 3,750,000 2,500,000 621,178,219				5,343,884 $ 36,075 20,050 13,244,327 31,887,504 $	None " " "

Statement 2, Page 2

FORMOSA CHEMICALS & FIBRE CORPORATION

Notes receivable

December 31, 2021

	Notes receivable December 31, 2021	Notes receivable December 31, 2021	Notes receivable December 31, 2021	Notes receivable December 31, 2021
Statement 3	(Expressed in thousands of New Taiwan Dollars)
Client Name	Description		Amount	Note
General customers
Entire Technology Co., Ltd.	Payments to suppliers	$	101,266
Cheng Fong Plastics Co., Ltd.	Payments to suppliers		56,375
Jvan An International Co., Ltd.	Payments to suppliers		35,222
				Balance of each client
				has not exceeded 5%
Others	Payments to suppliers		65,285	of total account balance
Subtotal			258,148
Less: Loss allowance			-
Total		$	258,148
Related party
Formosa Taffeta Co., Ltd.	Payments to suppliers	$	318,393
Less: Loss allowance			-
Total		$	318,393

Aforementioned notes receivables all were generated from operating activities.

Statement 3, Page 1

FORMOSA CHEMICALS & FIBRE CORPORATION Accounts receivable

December 31, 2021

Statement 4 (Expressed in thousands of New Taiwan Dollars)

Client Name Description General customers United Raw Material Pte Ltd. Payments to suppliers Others Payments to suppliers Subtotal Less: Loss allowance Total Related parties Formosa Chemicals Industries (Ningbo) Co., Ltd. Payments to suppliers Nan Ya Plastics Corp. Payments to suppliers Formosa Petrochemical Corp. Payments to suppliers Formosa Idemitsu Petrochemical Corporation Payments to suppliers Others Payments to suppliers Subtotal Less: Loss allowance Total		Amount	Note
	458,300 $ 7,118,692 7,576,992 72,076) ( 7,504,916 $ 9,143,083 $ 2,752,754 2,704,029 1,485,620 1,532,443 17,617,929 - 17,617,929 $		Balance of each client has not exceeded 5% of total account balance Balance of each client has not exceeded 5% of total account balance

Aforementioned accounts receivables all were generated from operating activities.

Statement 4, Page 1

FORMOSA CHEMICALS & FIBRE CORPORATION

Inventories

December 31, 2021

Statement 5 (Expressed in thousands of New Taiwan Dollars)

		Amount	Amount
Items		Cost		Market price	Basis of marketprice
Raw materials	$	8,299,391	$	8,231,919	Net realisable value
Supplies		3,338,637		3,646,371	Net realisable value
Work in progress		2,431,917		2,249,755	Net realisable value
Finished goods		7,940,209		7,758,543	Net realisable value
Other inventories		4,965		4,965	Net realisable value
Subtotal		22,015,119	$	21,891,553
Allowance for valuation loss	(	975,818)
Total	$	21,039,301

Statement 5, Page 1

FORMOSA CHEMICALS & FIBRE CORPORATION

Changes in investments accounted for using equity method December 31, 2021

Statement 6 (Expressed in thousands of New Taiwan Dollars)

Investee	BeginningBalance	BeginningBalance	Addition	Addition	Decrease	Decrease	Investment profit (loss) accounted for usingequitymethod	Others (Note 1)	EndingBalance	EndingBalance	EndingBalance	Market Value or Net Assets Value	Collateral or endorsement provided
	No.of shares	Amount	No.of shares	Amount	No.of shares	Amount			No.of shares	Percentage of Ownership	Amount
Tah Shin Spinning Corp. Formosa Taffeta Co., Ltd. Formosa Heavy Industries Corp. Formosa Fairway Corporation Formosa Plastics Transport Corp. Formosa Petrochemical Corp. Mai-Liao Power Corp. FCFC Investment Corp. (Cayman) Hwa Ya Science Park Management Consulting Co., Ltd. Chia-Nan Enterprise Corporation Formosa Idemitsu Petrochemical Corp. Formosa Industries Corp.,Vietnam Formosa INEOS Chemicals Corp. Formosa Environmental Technology Co. Formosa Biomedical Technology Corp. Formosa FCFC Carpet Corp. Formosa Synthetic Rubber (Hong Kong) Co., Ltd. Formosa Resources Corporation	1,728,000 630,022,431 651,706,181 4,697,951 6,566,384 2,300,799,801 601,733,151 56,000 33,000 21,163,000 60,000,000 - 120,150,000 41,714,475 147,556,136 22,037,185 138,334,000 741,594,000	738,754 $ 22,556,331 7,102,774 68,247 1,177,559 74,133,567 12,414,449 61,014,998 3,029 353,298 1,330,780 8,011,716 1,567,014 227,350 1,885,663 198,152 2,308,051 6,169,287	- - 4,810,503 - - - 162,467,950 - - - - - - - - - - 88,453,125	- $ - - - - - - - - - - - - - - - - 887,813	1,728,000) ( - - - - - - - - - - - - - - - 666) ( -	738,754) ($ 630,022) ( - - - 1,357,472) ( 361,040) ( - - 12,909) ( 94,560) ( 1,106,665) ( 86,508) ( - 221,334) ( - 10) ( -	- $ 790,124 74,723 21,230) ( 80,120 11,968,645 77,040 7,459,324 638 798) ( 508,600 596,214 1,748,798 2,438 273,579 10,600) ( 168,050) ( 71,467	- $ 143,322 516,618 2,197 6,997) ( 1,335,983 688,761 594,404) ( 472) ( - 758) ( 187,216) ( 2,046) ( 957) ( 1,540,089 148) ( 42,073 268,242) (	- 630,022,431 656,516,684 4,697,951 6,566,384 2,300,799,801 764,201,101 56,000 33,000 21,163,000 60,000,000 - 120,150,000 41,714,475 147,556,136 22,037,185 138,333,334 830,047,125	- 37.40 32.91 33.33 33.33 24.15 24.94 100.00 33.00 51.00 50.00 42.50 50.00 24.34 88.59 100.00 33.34 25.00	- $ 22,859,755 7,694,115 49,214 1,250,682 86,080,723 12,819,210 67,879,918 3,195 339,591 1,744,062 7,314,049 3,227,258 228,831 3,477,997 187,404 2,182,064 6,860,325	- 23,201,679 7,777,987 49,214 1,250,682 86,315,594 12,819,210 68,121,645 3,195 339,590 1,749,621 7,376,954 3,263,855 228,831 3,480,752 193,738 2,182,063 6,860,325	None " " " " " " " " " " " " " " " " "

Statement 6, Page 1

FORMOSA CHEMICALS & FIBRE CORPORATION

Changes in investments accounted for using equity method (Cont.) December 31, 2021

Statement 6 Investee	Beginning	Balance	No. ofshares Amount Addition	No. ofshares Amount Addition	Decrease	Decrease	Investment profit (loss) accounted for usingequitymethod	(Expressed in thousands No. of shares Percentage of Ownership Amount Others (Note 1) EndingBalance	(Expressed in thousands No. of shares Percentage of Ownership Amount Others (Note 1) EndingBalance	(Expressed in thousands No. of shares Percentage of Ownership Amount Others (Note 1) EndingBalance	of New Taiwan Dollars) Market Value or Net Assets Value Collateral or endorsement provided
	No. of shares	Amount			No. of shares	Amount
Formosa Group Corp. (Cayman) Formosa Construction Corp. FG INC. Guo Su Plastic Industry Co., Ltd.	12,500 60,000,000 6,000 -	649,229 $ 568,354 3,117,242 - 205,595,844 $	- - - 1,875,000	- $ - - 48,469 936,282 $	- - - -	- $ - - - 4,609,274) ($	31,867 $ 8,591 30,571) ( - 23,460,919 $	18,997) ($ 12,500 16,789 60,000,000 92,765) ( 6,000 - 1,875,000 3,112,830 $	25.00 33.33 30.00 32.89	662,099 $ 593,734 2,993,906 48,469 228,496,601 $	751,475 None 593,725 " 3,120,875 " 17,346 " 229,698,356 $

Note 1: This pertains to share of other comprehensive income of subsidiaries and associates accounted for using equity method, capital surplus-changes in net share equity of associates accounted for using equity method and unrealised sales profit or loss.

Statement 6, Page 2

FORMOSA CHEMICALS & FIBRE CORPORATION

Statement of changes in cost, accumulated depreciation and impairment of property, plant and equipment December 31, 2021

Statement 7 (Expressed in thousands of New Taiwan Dollars)

Items		BeginningBalance		Addition	Decrease	Reclassification		EndingBalance	Note
Cost Land Buildings and structures Machinery and equipment Transportation equipment Other equipment Construction in progress and equipment under acceptance Accumulated depreciation Buildings and structures Machinery and equipment Transportation equipment Other equipment Accumulated impairment Buildings and structures Machinery and equipment Transportation equipment Other equipment Construction in progress and equipment under acceptance Net amount of property, plant and equipment	9,522,375 $ 19,364,542 180,450,547 469,934 3,933,598 9,465,871 223,206,867 14,399,830) ( 148,918,972) ( 347,501) ( 3,124,638) ( 166,790,941) ( 187,527) ( 1,660,946) ( 1,219) ( 6,052) ( - 1,855,744) ( 54,560,182 $		- $ 370,010 855,115 1,800 64,803 6,561,093 7,852,821 628,034) ( 5,108,326) ( 23,130) ( 192,772) ( 5,952,262) ( - - - - - - 1,900,559 $		2,170) ($ 79,835) ( 1,086,799) ( 12,433) ( 110,651) ( - 1,291,888) ( 79,835 1,080,333 12,433 110,569 1,283,170 - - - - - - 8,718) ($	- $ 264,933 5,872,701 128 175,497 6,313,908) ( 649) ( 172) ( 1,859 22) ( 1,433) ( 232 - - - - - - 417) ($	9,520,205 $ 19,919,650 186,091,564 459,429 4,063,247 9,713,056 229,767,151 14,948,201) ( 152,945,106) ( 358,220) ( 3,208,274) ( 171,459,801) ( 187,527) ( 1,660,946) ( 1,219) ( 6,052) ( - 1,855,744) ( 56,451,606 $		Please refer to Note 8

Statement 7, Page 1

FORMOSA CHEMICALS & FIBRE CORPORATION Accounts payable and payables to related parties December 31, 2021

	December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021
Statement 8	(Expressed in thousands of New Taiwan Dollars)
Client Name	Description		Amount	Note
General customers
China Petrochemical	Payments to suppliers	$	134,673
Development Corporation
				Balance of each supplier
				has not exceeded 5%
Others	Payments to suppliers		1,242,803	of total account balance
		$	1,377,476
Related parties
Formosa Petrochemical Corp.	Payments to suppliers	$	13,877,906
Nan Ya Plastics Corp.	Payments to suppliers		1,018,160
				Balance of each supplier
				has not exceeded 5%
Others	Payments to suppliers		1,126,221	of total account balance
		$	16,022,287

Statement 8, Page 1

Statement 9 Items	Statement 9 Items	Statement 9 Items	Statement 9 Items	Statement 9 Items	Statement 9 Items	Taiwan Dollars) Note
			Unit
Para-Xylene (PX) Acrylonitrile Butadiene Styrene Styrene Monomer Recovery of Light Oil Polypropylene (PP) Purified Terephthalic Acid (PTA) Polycarbonate (PC) Polystyrene (PS) Phenol Isophthalic Acid (PIA) Acetone Nylon Fully Oriented Yarn Electricity Benzene Ortho-Xylene (OX) Hydrogen Debutanization Rayon Staple Fiber Nylon Chip Heavy Aromatic Oil Synthetic Fibre Yarn Meta-Xylene Nylon Draw Textured Yarn Sodium Sulphate Spun Fabric Others Sales revenue Less: Sales returns Sales discounts and allowances Other operating revenue Total operating revenue			MT MT MT MT MT MT MT MT MT MT MT MT MH MT MT MT MT MT MT MT BL MT MT MT KY	1,307,445 422,448 744,093 1,329,491 571,647 1,196,490 208,397 331,705 455,818 210,924 272,647 57,942 1,949,848 125,264 137,966 42,997 102,161 29,677 23,980 117,838 62,486 22,516 3,761 19,594 111	31,696,605 $ 29,670,982 24,350,894 23,728,827 23,498,744 23,112,724 18,430,835 14,873,794 14,677,778 6,373,919 6,345,822 5,556,402 4,620,392 3,217,199 3,181,430 2,231,641 1,668,818 1,617,842 1,390,479 1,352,004 1,015,237 629,708 522,804 84,611 28,519 1,191,413 245,069,423 51,887) ( 1,702,332) ( 243,315,204 169,858 243,485,062 $

Statement 9, Page 1

FORMOSA CHEMICALS & FIBRE CORPORATION

Operating costs Year ended December 31, 2021

Statement 10 (Expressed in thousands of New Taiwan Dollars)

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Items Amount Note
Materials at the beginning of the year $ 4,655,511
Add: Purchases in the year 267,965,112
Internal inventory transferred 37,085,115
Less: Materials at the end of the year ( 8,299,391)
Disposed ( 12,893)
Transferred to manufacturing expenses ( 7,500,297)
Raw materials used 293,893,157
Direct labor 1,968,423
Manufacturing expense 38,545,994
Manufacturing cost 334,407,574
Add: Beginning work in Progress 1,552,918
Less: Ending work in Progress ( 2,431,917)
Transferred to general & administrative expenses ( 127)
Transferred to manufacturing expenses ( 4,886,228)
Cost of finished goods 328,642,220
Add: Finished goods at beginning of year 4,106,269
Less: Finished goods at end of year ( 7,940,209)
Samples sent ( 4,104)
Internal inventory transferred - raw materials ( 37,085,115)
Cost for self-use - sub-material ( 73,758,022)
Scraps ( 164,019)
Cost of goods sold 213,797,020
Loss on inventory valuation 409,392
Idle capacity (including annual survey and work stoppage) 850,301
Other operating costs 159,281
Operating costs $ 215,215,994
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Statement 10, Page 1

FORMOSA CHEMICALS & FIBRE CORPORATION

Manufacturing expenses Year ended December 31, 2021

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Statement 11 (Expressed in thousands of New Taiwan Dollars)
Items Amount Note
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Main sub-material Depreciation Utilities expense Vapor expense Maintenance expense Indirect labor Research and development Others	8,551,637 $ 5,781,758 6,544,143 5,580,607 2,729,854 2,336,423 198,385 6,823,187 None of the balances of others is greater than 5% of this account balance. 38,545,994 $

Statement 11, Page 1

FORMOSA CHEMICALS & FIBRE CORPORATION

Selling expenses Year ended December 31, 2021

Statement 12 (Expressed in thousands of New Taiwan Dollars) Items Amount Note Freight $ 6,339,290 Export expenses 1,062,690 Wages and salaries 262,783 None of the balances of others is greater Others 389,610 than 5% of this account balance. $ 8,054,373

Statement 12, Page 1

FORMOSA CHEMICALS & FIBRE CORPORATION

General and administrative expenses Year ended December 31, 2021

Statement 13 (Expressed in thousands of New Taiwan Dollars)

Items Amount Note Wages and salaries $ 2,148,116 Research and development 353,118 Depreciation 165,756 None of the balances of others is greater Others 1,206,186 than 5% of this account balance. $ 3,873,176

Statement 13, Page 1

FORMOSA CHEMICALS & FIBRE CORPORATION

Summary statement of current period employee benefits, depreciation, depletion and amortization expenses by function Year ended December 31, 2021

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Statement 14 (Expressed in thousands of New Taiwan Dollars)
Function Year ended December 31, 2021 Year ended December 31, 2020
Classified as Classified as Classified as Classified as
Total Total
Nature Operating Costs Operating Expenses Operating Costs Operating Expenses
Employee benefit expense
Salary expenses $ 4,264,328 $ 2,688,678 $ 6,953,006 $ 3,724,759 $ 2,353,358 $ 6,078,117
Labour and health insurance fees 297,401 154,805 452,206 272,888 143,554 416,442
Pension costs 176,128 93,630 269,758 197,747 100,387 298,134
Directors’ remuneration - 6,690 6,690 - 6,410 6,410
Other personnel expenses 229,862 96,212 326,074 202,870 86,259 289,129
Depreciation expense $ 5,781,758 $ 176,301 $ 5,958,059 $ 5,473,502 $ 175,323 $ 5,648,825
Amortisation charge $ 3,470,945 $ - $ 3,470,945 $ 3,166,572 $ - $ 3,166,572
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Note:

A. As at December 31, 2021 and 2020, the Company had 4,594 and 4,762 employees, respectively, including 5 and 7 non-employee directors for current year and previous year.

B. A company whose stock is listed for trading on the stock exchange or over-the-counter securities exchange shall additionally disclose the following information ：

• (a) Average employee benefit expense in current year was $1,744 thousand ((Total employee benefit expense in current year–Total directors’ compensation in current year) / (Number of employees in current year–Number of non-employee directors in current year)).

Average employee benefit expense in previous year was $1,489 thousand ((Total employee benefit expense in previous year–Total directors’ compensation in previous year) /

(Number of employees in previous year – Number of non-employee directors in previous year)).

• (b) Average employee salaries in current year was $1,515 thousand (Total employee salaries in current year / (Number of employees in current year–Number of non-employee directors in current year))

Average employee salaries in previous year was $1,278 thousand (Total employee salaries in previous year /(Number of employees in previous year–Number of non-employee directors in previous year)).

• (c) Adjustments of average employee salaries was 18.54%((Average employee salaries in current year-Average employee salaries in previous year) / Average employee salaries in previous year).

• (d) For the years ended December 31, 2021 and 2020, there was no supervisors’ remuneration for both years.

Statement 14, Page 1

FORMOSA CHEMICALS & FIBRE CORPORATION

Summary statement of current period employee benefits, depreciation, depletion and amortization expenses by function (Cont.) Year ended December 31, 2021

Statement 14 (Expressed in thousands of New Taiwan Dollars)

• (e) The Company’s salary and remuneration policy (including directors, managers and employees) i. Directors:

• (i) The Company’s independent directors are granted a monthly fixed remuneration and an additional travel allowance according to their actual attendance to the Board of Directors.

• (ii) According to the Company’s Articles of Incorporation, remaining directors’ remuneration was authorised to be decided by the Board of Directors based on their participation

• frequency in the Company’s operation and contribution to the Company’s operation and were referred to the common standard in the same industry. Additionally, travel allowance was received according to their actual attendance to the Board of Directors.

• (iii) On June 6, 2008, directors’ remuneration was canceled to be distributed from earnings as approved by the shareholders.

• ii. Managers:

Managers’ remuneration is determined based on the Company’s Articles of Incorporation and the Company Act Article 29, except for the monthly fixed salary and remuneration, there were also annual bonus, unused compensated absences and management rewards. Additionally, the monthly fixed salary and remuneration are suggested to be adjusted by the remuneration committee based on the salary adjustment standard of all employees every year. iii. Employees:

• Except for the monthly fixed salary and compensation, the Company’s employees receive annual bonus, festival bonus, unused compensated absences and management rewards. The monthly fixed salary and compensation are adjusted with reference to Consumer Price Index, salary standard and salary adjustment in the industry and related economic data.

• Explanation: A. For the employee’s number information in the notes of the table, the Company adopted the average employee number to calculate employee’s number, which is in agreement with employee benefit expense and employees’ salary expenses.

• B. According to IFRS 19, employees can provide service in ways of full-time, part-time, permanent, irregular or contingent, including directors and other managements. Therefore,

• ‘employees’ in the table included directors, managers, normal employees and contract employees, but, excluded supervisors, temporary workers, contract workers or outsourcing. C. ‘Directors’ remuneration’ refers to the remuneration, severance pay, directors’ rewards and business execution expenses which were received by all directors, however, the salary from being employed, labour and health insurance, pension and other benefit expenses are excluded.

• D. ‘Supervisors’ remuneration’ are remuneration, rewards and business execution expenses which were received by all supervisors.

Statement 14, Page 2