FCFC - Interim / Quarterly Report 2021

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REVIEW REPORT JUNE 30, 2021 AND 2020

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

AND SUBSIDIARIES

INDEX

INDEX
Items Index Independent Auditors’ Review Report Consolidated Balance Sheets Consolidated Statements of Comprehensive Income Consolidated Statements of Changes in Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements	Pages
	1-3 4-5 6-7 8 9-10 11-105

INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

PWCR21000049 To the Board of Directors and Shareholders of Formosa Chemicals & Fibre Corporation

Introduction

We have reviewed the accompanying consolidated balance sheets of Formosa Chemicals & Fibre Corporation and subsidiaries (the “Group”) as at June 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three-month and six-month periods then ended , as well as the consolidated statements of changes in equity and of cash flows for the six-month periods then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews and the reports of other independent auditors.

Scope of Review

We conducted our reviews in accordance with the Statement of Auditing Standards No. 65, “Review of Financial Information Performed by the Independent Auditor of the Entity” in the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

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Basis for Qualified Conclusion

As explained in Notes 4(3) and 6(7), the financial statements of certain insignificant consolidated subsidiaries and investments accounted for using equity method were not reviewed by independent auditors. Those statements reflect total assets (including investments accounted for using equity method) of NT$96,983,997 thousand and NT$100,132,688 thousand, constituting 17% and 20% of the consolidated total assets, and total liabilities of NT$18,984,151 thousand and NT$19,572,482 thousand, both constituting 12% of the consolidated total liabilities as at June 30, 2021 and 2020, respectively, and total comprehensive income (including share of profit or loss of associates and joint ventures accounted for using equity method and share of other comprehensive income of associates and joint ventures accounted for using equity method) of NT$3,753,813 thousand, (NT$592,219) thousand, and NT$6,101,383, (NT$1,217,204), constituting 23%, (5%) and 15%, 3% of the consolidated total comprehensive income for the three-month and six-month periods then ended, respectively.

Qualified Conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and investments accounted for using equity method been reviewed by independent auditors, that we might have become aware of had it not been for the situation described above, based on our reviews and the reports of other independent auditors, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at June 30, 2021 and 2020, and of its consolidated financial performance for the three-month and six-month periods then ended, and of its consolidated cash flows for the six-month periods then ended, in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

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Other matter – reviews of the other independent auditors

We did not review the financial statements of certain investments accounted for using equity method. The investment balance amounted to NT$80,436,939 thousand and NT$64,466,687 thousand, constituting 14% and 13% of consolidated total assets as at June 30, 2021 and 2020, respectively, and share of profit of associates and joint ventures accounted for using the equity method amounted to NT$2,148,271 thousand, (NT$1,169,031) thousand, NT$7,658,237 thousand, and (NT$8,358,396) thousand, constituting 13%, (10%), 19% and 21% of consolidated total comprehensive income for the three-month and six-month periods then ended, respectively. Those financial statements were reviewed by other independent auditors, whose reports thereon have been furnished to us, and our conclusion expressed herein, insofar as it relates to the amounts included in the consolidated financial statements was based solely on the review reports of other independent auditors.

Wu, Han-Chi

[Chou, Chien-Hung ]

For and on behalf of PricewaterhouseCoopers, Taiwan August 6, 2021

------------------------------------------------------------------------------------------------------------------------------------------------The accompanying consolidated 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 consolidated financial statements and independent auditors’ review 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 AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars) (The balance sheets as of June 30, 2021 and 2020 are reviewed, not audited)

				June 30, 2021			December 31, 2020			June 30, 2020
	Assets	Notes		AMOUNT	%		AMOUNT	%		AMOUNT	%
	Current assets
1100	Cash and cash equivalents	6(1)	`$`	`23,243,516`	`4`	`$`	`17,127,127`	`3`	`$`	`22,273,767`	`4`
1110	Financial assets at fair value	6(2)
	through profit or loss - current			`3,918,170`	`1`		`3,888,592`	`1`		`4,023,532`	`1`
1120	Current financial assets at fair	6(3)
	value through other
	comprehensive income			`115,186,376`	`20`		`109,489,471`	`21`		`93,109,615`	`18`
1136	Current financial assets at	6(4)
	amortised cost			`452,118`	`-`		`1,116,878`	`-`		`-`	`-`
1150	Notes receivable, net	6(5)		`10,850,444`	`2`		`10,884,391`	`2`		`5,280,490`	`1`
1160	Notes receivable - related	6(5) and 7
	parties			`805`	`-`		`4,260`	`-`		`5,542`	`-`
1170	Accounts receivable, net	6(5)		`20,726,738`	`3`		`16,661,036`	`3`		`12,810,599`	`3`
1180	Accounts receivable - related	6(5) and 7
	parties			`7,364,440`	`1`		`5,954,694`	`1`		`5,259,415`	`1`
1200	Other receivables	7		`4,483,007`	`1`		`2,558,805`	`1`		`13,094,290`	`3`
1210	Other receivables - related	7
	parties			`3,609,966`	`1`		`4,195,598`	`1`		`12,642,870`	`2`
130X	Inventory	6(6) and 8		`42,467,722`	`7`		`33,047,807`	`6`		`34,444,872`	`7`
1470	Other current assets	7		`12,045,124`	`2`		`10,936,356`	`2`		`9,533,756`	`2`
11XX	Total current assets			`244,348,426`	`42`		`215,865,015`	`41`		`212,478,748`	`42`
	Non-current assets
1517	Non-current financial assets at	6(3)
	fair value through other
	comprehensive income			`68,180,528`	`12`		`59,621,608`	`11`		`54,620,454`	`11`
1535	Non-current financial assets at	6(4) and 8
	amortised cost			`1,500`	`-`		`263,646`	`-`		`-`	`-`
1550	Investments accounted for	6(7)
	under equity method			`123,177,680`	`21`		`116,029,032`	`22`		`104,206,895`	`20`
1600	Property, plant and equipment	6(8), 7 and 8		`127,090,749`	`22`		`127,268,960`	`24`		`125,521,318`	`25`
1755	Right-of-use assets	6(9)		`1,541,397`	`-`		`1,541,844`	`-`		`1,602,875`	`-`
1780	Intangible assets			`5,497`	`-`		`3,436`	`-`		`3,546`	`-`
1840	Deferred income tax assets			`2,247,722`	`1`		`2,111,162`	`-`		`2,697,760`	`-`
1900	Other non-current assets			`10,942,950`	`2`		`9,115,725`	`2`		`9,191,754`	`2`
15XX	Total non-current assets			`333,188,023`	`58`		`315,955,413`	`59`		`297,844,602`	`58`
1XXX	Total assets		`$`	`577,536,449`	`100`	`$`	`531,820,428`	`100`	`$`	`510,323,350`	`100`
				(Continued)

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FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Expressed in thousands of New Taiwan dollars)

(The balance sheets as of June 30, 2021 and 2020 are reviewed, not audited)

Liabilities and Equity	Notes	June 30, 2021	December 31, 2020 June 30, 2020 % AMOUNT % AMOUNT `3` `$` `19,055,620` `4` `$` `39,122,793` `2` `16,096,733` `3` `18,786,218` `-` `137` `-` `48` `-` `225,924` `-` `234,676` `1` `5,930,437` `1` `4,951,634` `2` `12,208,567` `2` `8,127,001` `4` `8,656,243` `2` `33,978,459` `-` `531,808` `-` `-` `1` `2,423,121` `1` `410,595` `-` `125,986` `-` `162,491` `1` `2,106,821` `-` `2,601,535` `1` `6,091,542` `1` `4,632,785` `15` `73,452,939 14` `113,008,235` `8` `40,050,000` `8` `32,100,000` `3` `16,241,267` `3` `14,165,299` `-` `440,237` `-` `431,528` `-` `711,804` `-` `733,654` `1` `5,471,652` `1` `6,429,821` `12` `62,914,960 12` `53,860,302` `27` `136,367,899 26` `166,868,537` `10` `58,611,863 11` `58,611,863` `1` `9,167,637` `2` `9,143,281` `12` `64,335,076 12` `64,335,076` `12` `66,328,339 13` `66,328,339` `10` `53,380,101 10` `30,119,556` `18` `92,854,794 17` `68,001,678` `- (` `323,952 )` `- (` `323,952)` `63` `344,353,858 65` `296,215,841` `10` `51,098,671` `9` `47,238,972` `73` `395,452,529 74` `343,454,813` `100` `$` `531,820,428 100` `$` `510,323,350`	June 30, 2020
					%
Current liabilities 2100 Short-term borrowings 2110 Short-term notes and bills payable 2120 Financial liabilities at fair value through profit or loss - current 2150 Notes payable 2170 Accounts payable 2180 Accounts payable - related parties 2200 Other payables 2220 Other payables - related parties 2230 Current income tax liabilities 2280 Current lease liabilities 2320 Long-term liabilities, current portion 2399 Other current liabilities 21XX Total current liabilities Non-current liabilities 2530 Corporate bonds payable 2540 Long-term borrowings 2570 Deferred income tax liabilities 2580 Non-current lease liabilities 2600 Other non-current liabilities 25XX Total non-current liabilities 2XXX Total liabilities Equity attributable to owners of parent Share capital 3110 Common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 3500 Treasury stocks 31XX Equity attributable to owners of the parent 36XX Non-controlling interest 3XXX Total equity Significant contingent liabilities and unrecognised contract commitments Significant events after the balance sheet date 3X2X Total liabilities and equity					`8` `4` `-` `-` `1` `1` `7` `-` `-` `-` `-` `1`
					`22`
					`7` `3` `-` `-` `1`
					`11`
					`33`
					`11` `2` `13` `13` `6` `13` `-`
					`58`
					`9`
					`67`
					`100`

The accompanying notes are an integral part of these consolidated financial statements.

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FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts) (REVIEWED, NOT AUDITED)

Items	Notes	For the three-month periods ended June 30	For the three-month periods ended June 30
		2021	2020
4000 Operating revenue 5000 Operating costs 5900 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 7060 Share of profit (loss) of associates and joint ventures accounted for under equity method 7000 Total non-operating income and expenses 7900 Profit (loss) before income tax 7950 Income tax expense 8000 Profit (loss) for the period from continuing operations 8100 Loss from discontinued operations 8200 Profit (loss) for the period

(Continued)

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FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Expressed in thousands of New Taiwan dollars, except for earnings per share amounts) (REVIEWED, NOT AUDITED)

							For the three-month	For the three-month	For the three-month	periods ended	periods ended	periods ended	June 30					For the six-month periods	For the six-month periods	For the six-month periods	For the six-month periods	ended June 30
							2021						2020					2021				2020
	Items		Notes				AMOUNT		%			AMOUNT			%			AMOUNT	%			AMOUNT	%
	Other comprehensive income (net)	6(20)(28)
	Components of other comprehensive income that will not be
	reclassified to profit or loss
8316	Unrealised gain (loss) on financial assets measured at fair value
	through other comprehensive income					`$`	`5,371,669`		`6`		`$`	`10,714,080`				`19`	`$`	`14,274,723`	`8`	`($`		`29,761,910 ) (`	`24 )`
8320	Share of other comprehensive (loss) income of associates and joint
	ventures accounted for under equity method				`(`		`1,748,499 )`	`(`	`2)`				`418,272`			`1`		`121,821`	`-`	`(`		`5,733,708 ) (`	`5 )`
8310	Other comprehensive income (loss) that will not be reclassified
	to profit or loss						`3,623,170`		`4`			`11,132,352`				`20`		`14,396,544`	`8`	`(`		`35,495,618 ) (`	`29 )`
	Components of other comprehensive income that will be
	reclassified to profit or loss
8361	Financial statements translation differences of foreign operations				`(`		`932,196 )`	`(`	`1) (`			`1,575,453)`		`(`		`3 ) (`		`1,395,271) (`	`1)`	`(`		`2,438,545 ) (`	`2 )`
8370	Share of other comprehensive loss of associates and joint ventures
	accounted for under equity method				`(`		`447,285 )`		`-`	`(`			`355,291)`	`(`		`1 ) (`		`418,787)`	`-`	`(`		`261,281 )`	`-`
8399	Income tax relating to the components of other comprehensive
	income						`134,289`		`-`				`292,411`			`1`		`213,260`	`-`			`405,375`	`-`
8360	Other comprehensive loss that will be reclassified to profit or
	loss				`(`		`1,245,192 )`	`(`	`1) (`			`1,638,333)`		`(`		`3 ) (`		`1,600,798) (`	`1)`	`(`		`2,294,451 ) (`	`2 )`
8300	Total other comprehensive income (loss) for the period					`$`	`2,377,978`		`3`		`$`	`9,494,019`				`17`	`$`	`12,795,746`	`7`	`($`		`37,790,069 ) (`	`31 )`
8500	Total comprehensive income (loss) for the period					`$`	`16,195,322`		`17`		`$`	`11,305,993`				`20`	`$`	`40,681,167`	`23`	`($`		`40,320,867 ) (`	`33 )`
	Net income (loss) attributable to:
8610	Owners of the parent					`$`	`12,404,365`		`13`		`$`	`1,142,621`				`2`	`$`	`25,277,299`	`15`	`($`		`3,467,101 ) (`	`3 )`
8620	Non-controlling interest						`1,412,979`		`1`				`669,353`			`1`		`2,608,122`	`1`			`936,303`	`1`
						`$`	`13,817,344`		`14`		`$`	`1,811,974`				`3`	`$`	`27,885,421`	`16`	`($`		`2,530,798 ) (`	`2 )`
	Total comprehensive income (loss) attributable to:
8710	Owners of the parent					`$`	`12,202,243`		`13`		`$`	`9,127,358`				`16`	`$`	`35,536,110`	`20`	`($`		`38,026,353 ) (`	`31 )`
8720	Non-controlling interest						`3,993,079`		`4`			`2,178,635`				`4`		`5,145,057`	`3`	`(`		`2,294,514 ) (`	`2 )`
						`$`	`16,195,322`		`17`		`$`	`11,305,993`				`20`	`$`	`40,681,167`	`23`	`($`		`40,320,867 ) (`	`33 )`
					Before Tax After			Tax		Before Tax			After	Tax		Before Tax After Tax					Before Tax After		Tax
	Basic earnings per share	6(29)
9710	Profit (loss) for the period from continuing operations			$			2.83 $	2.36		$		0.34	$	0.31		$		5.69 $	4.77	($		0.36) ($	0.43)
9710	Profit (loss) for the period from discontinued operations						-		-			-			-			-	-	(		0.00) (	0.00)
9720	Non-controlling interest						0.45	0.24				0.14		0.11				0.91	0.45			0.23	0.16
9750	Profit (loss) attributable to common shareholders of the parent			$			2.38 $	2.12		$		0.20	$	0.20		$		4.78 $	4.32	($		0.59) ($	0.59)
	Assuming shares held by subsidiary are not deemed as treasury stock:
	Profit (loss) for the period from continuing operations			$			2.81 $		2.36	$		0.34	$	0.31		$		5.67 $	4.76		($	0.36) ($	0.43)
	Profit (loss) for the period from discontinued operations						-		-			-			-			-	-		(	0.00) (	0.00)
	Non-controlling interest						0.44		0.25			0.14		0.11				0.90	0.45			0.23	0.16
	Profit (loss) attributable to common shareholders of the parent			$			2.37 $		2.11	$		0.20	$	0.20		$		4.77 $	4.31		($	0.59) ($	0.59)

The accompanying notes are an integral part of these consolidated financial statements.

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FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

(Expressed in thousands of New Taiwan dollars)

(REVIEWED, NOT AUDITED)

				Equityattributable to	Equityattributable to	owners of theparent						Non-controlling interest	Total equity
Common stock	Total capital surplus, additional paid-in capital			Retained Earnings	Unappropriated retained earnings	O	ther EquityInteres	t		Treasurystocks	Total
			Legal reserve	Special reserve		Financial statements translation differences of foreign operations	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income		Gains (losses) on hedging instruments
`$ 58,611,863` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$ 58,611,863` `$ 58,611,863` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `$ 58,611,863`		`$ 9,138,869` `-` `-` `-` `-` `-` `-` `4,549` `(` `125)` `(` `12)` `-` `-` `$ 9,143,281` `$ 9,167,637` `-` `-` `-` `-` `-` `-` `(` `5)` `(` `221)` `(` `11)` `-` `-` `$ 9,167,400`	`$ 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` `(` `3,467,101` `)` `-` `(` `3,467,101` `)` `(` `2,970,224` `)` `(` `6,156,414` `)` `(` `22,272,508` `)` `(` `4,381` `)` `-` `-` `-` `-` `$ 30,119,556` `$ 53,380,101` `25,277,299` `-` `25,277,299` `(` `1,978,906` `)` `(` `3,704,582` `)` `(` `14,652,966` `)` `2,446` `-` `-` `16,524` `-` `$ 58,339,916`	`(` `$ 4,560,606)` `-` `(` `1,975,546)` `(` `1,975,546)` `-` `-` `-` `-` `-` `-` `-` `-` `(` `$ 6,536,152)` `(` `$ 5,272,606)` `-` `(` `1,259,124)` `(` `1,259,124)` `-` `-` `-` `-` `-` `-` `-` `-` `(` `$ 6,531,730)`	`$ 107,120,877` `-` `(` `32,620,919)` `(` `32,620,919)` `-` `-` `-` `-` `-` `-` `-` `-` `$ 74,499,958` `$ 98,095,277` `-` `11,521,644` `11,521,644` `-` `-` `-` `(` `2,446)` `-` `-` `(` `16,524)` `-` `$ 109,597,951`		`$` `659` `-` `37,213` `37,213` `-` `-` `-` `-` `-` `-` `-` `-` `$` `37,872` `$` `32,123` `-` `(` `3,709` `)` `(` `3,709` `)` `-` `-` `-` `-` `-` `-` `-` `-` `$` `28,414`	`(` `$` `323,952)` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `(` `$` `323,952)` `(` `$` `323,952)` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `-` `(` `$` `323,952)`	`$ 356,514,671` `(` `3,467,101)` `(` `34,559,252)` `(` `38,026,353)` `-` `-` `(` `22,272,508)` `168` `(` `125)` `(` `12)` `-` `-` `$ 296,215,841` `$ 344,353,858` `25,277,299` `10,258,811` `35,536,110` `-` `-` `(` `14,652,966)` `(` `5)` `(` `221)` `(` `11)` `-` `-` `$ 365,236,765`	`$ 52,776,292` `936,303` `(` `3,230,817)` `(` `2,294,514)` `-` `-` `-` `-` `-` `(` `19)` `(` `3,238,377)` `(` `4,410)` `$ 47,238,972` `$ 51,098,671` `2,608,122` `2,536,935` `5,145,057` `-` `-` `-` `-` `-` `(` `18)` `12,955` `(` `2,521,846)` `$ 53,734,819`	`$ 409,290,963` `(` `2,530,798)` `(` `37,790,069)` `(` `40,320,867)` `-` `-` `(` `22,272,508)` `168` `(` `125)` `(` `31)` `(` `3,238,377)` `(` `4,410)` `$ 343,454,813` `$ 395,452,529` `27,885,421` `12,795,746` `40,681,167` `-` `-` `(` `14,652,966)` `(` `5)` `(` `221)` `(` `29)` `12,955` `(` `2,521,846)` `$ 418,971,584`

The accompanying notes are an integral part of these consolidated financial statements.

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FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

(REVIEWED, NOT AUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit (loss) from continuing operations before tax
Loss from discontinued operations before tax

Profit (loss) before tax
Adjustments
Adjustments to reconcile profit (loss)
Depreciation

Amortisation

Net gain on financial assets and liabilities at fair
value through profit or loss

Interest expense

Interest income

Dividend income

Gain on disposal of discontinued operations

Share of profit or loss of associates accounted
for under the equity method
Loss (gain) on disposal and scrap of property,
plant and equipment

Gain on lease modification
Changes in operating assets and liabilities
Changes in operating assets
Notes receivable
Notes receivable-related parties
Accounts receivable
Accounts receivable-related parties
Other receivables
Inventories
Other current assets
Changes in operating liabilities
Notes payable
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 Notes
For the six-month periods ended June 30
2021
2020
$
33,258,429 ($
2,111,774 )
6(10)
- (
484 )
33,258,429 (
2,112,258 )
6(8)(9)(26)
6,726,199
6,757,797
6(26)
1,916,371
1,749,588
6(24)
76,884
20,523
6(25)
499,588
759,809
6(22)
(
166,927 ) (
187,994 )
6(23)
(
12,995 ) (
1,078,609 )
6(10)
- (
165 )
(
7,983,148 )
3,482,501
6(24)
8,360 (
6,070 )
(
13 )
-
33,947
1,618,465
3,455
853
(
4,065,702 )
3,240,170
(
1,409,746 ) (
122,060 )
(
531,992 )
1,377,026
(
9,419,915 )
6,824,392
(
998,102 ) (
2,561,846 )
(
32,333 )
9,162
1,676,856 (
1,412,210 )
2,340,710 (
3,250,992 )
(
449,472 ) (
875,513 )
(
1,715,414 ) (
161,630 )
(
169,691 ) (
377,350 )
19,585,349
13,693,589
132,023
176,644
29,345
1,072,180
(
479,668 ) (
812,496 )
(
2,948,439 ) (
1,003,831 )
16,318,610
13,126,086

(Continued)

~9~

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Expressed in thousands of New Taiwan dollars)

(REVIEWED, NOT AUDITED)

CASH FLOWS FROM INVESTING ACTIVITIES
Decrease in other receivables-related parties
Acquisition of financial assets at fair value through
profit or loss
Acquisition of financial assets at fair value through
other comprehensive income
Proceeds from disposal of financial assets at fair
value through other comprehensive income
Disposal of financial assets at amortised cost
Acquisition of investments accounted for under the
equity method
Net cash flows used in disposal of subsidiaries

Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and
equipment
Acquisition of intangible assets
Increase in non-current assets
Net cash flows used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
(Decrease) increase in short-term borrowings
(Decrease) increase in short-term notes and bills
payable
Decrease in other payables-related parties
Increase in corporate bonds payable
Payment of corporate bonds payable
Increase in long-term borrowings
Payment of long-term borrowings
Payment of lease liabilities
(Decrease) increase in other non-current liabilities
Payment of cash dividends

Payment of cash dividends - non-controlling interest
Payment of expired cash dividends reclassified to
capital surplus
Net cash flows from financing activities
Effect of foreign exchange translations
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period Notes
For the six-month periods ended June 30
2021
2020
$
585,632 $
155,966
(
106,598 )
-
- (
55,400 )
13,253
-
926,906
-
(
887,813 ) (
2,098,003 )
6(31)
- (
23,556 )
6(31)
(
8,150,117 ) (
8,587,987 )
5,430
71,160
(
2,374 ) (
2,614 )
(
3,865,696 ) (
1,460,057 )
(
11,481,377 ) (
12,000,491 )
(
2,674,371 )
6,753,170
(
4,101,840 )
4,389,848
(
3,451 )
-
10,000,000
-
- (
1,400,000 )
3,318,818
3,854,077
(
4,449,623 ) (
6,333,200 )
(
91,674 ) (
91,566 )
(
6,508 )
73,465
6(31)
(
999 ) (
836 )

(
310,071 ) (
511,185 )
(
221 ) (
125 )
1,680,060
6,733,648
(
400,904 ) (
684,728 )
6,116,389
7,174,515
17,127,127
15,099,252
$
23,243,516 $
22,273,767

The accompanying notes are an integral part of these consolidated financial statements.

~10~

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2021 AND 2020

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

(REVIEWED, NOT AUDITED)

1. History and Organization

Formosa Chemicals & Fibre Corporation (the ‘‘Company”) was founded on March 5, 1965. The Company and its subsidiaries (together referred herein as the “Group”) now has eight business divisions, namely First Chemical Division, Petrochemicals Division, Third Chemical Division, Plastics Division, Textile Division, First Fiber Division and its subsidiaries, Second Fiber Division, and Engineering & Construction Division. The Group’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 Group is also engaged in spinning, weaving, dyeing and finishing.

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

These consolidated financial statements were authorised for issuance by the Board of Directors on August 6, 2021.

3. Application of New Standards, Amendments and Interpretations

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

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

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

Note: Earlier application from January 1, 2021 is allowed by the FSC.

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

~11~

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

the Group

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

==> picture [483 x 123] intentionally omitted <==

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

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

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’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:

==> picture [483 x 213] intentionally omitted <==

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

Effective date by
International Accounting
New Standards, Interpretations and Amendments Standards Board
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets To be determined by
between an investor and its associate or joint venture’ International Accounting
Standards Board
IFRS 17, ‘Insurance contracts’ January 1, 2023
Amendments to IFRS 17, ‘Insurance contracts’ January 1, 2023
Amendments to IAS 1, ‘Classification of liabilities as current or non- January 1, 2023
current
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 January 1, 2023
arising from a single transaction’
----- End of picture text -----

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

4. Summary of Significant Accounting Policies

The principal accounting policies applied in the preparation of these consolidated financial statements

are set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

~12~

(1) Compliance statement

The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Accounting Standards 34, “Interim Financial Reporting” as endorsed by the FSC.

(2) Basis of preparation

A. Except for the following items, the consolidated 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 “IFRS”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Group’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) Basis of consolidation

A. Basis for preparation of consolidated financial statements:
(a) All subsidiaries are included in the Group’s consolidated financial statements. Subsidiaries are all entities (including structured entities) controlled by the Group. The Group controls an entity when the Group is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity. Consolidation of subsidiaries begins from the date the Group obtains control of the subsidiaries and ceases when the Group loses control of the subsidiaries.
(b) Inter-company transactions, balances and unrealised gains or losses on transactions between companies within the Group are eliminated. Accounting policies of subsidiaries have been adjusted where necessary to ensure consistency with the policies adopted by the Group.
(c) Profit or loss and each component of other comprehensive income are attributed to the owners of the parent and to the non-controlling interests. Total comprehensive income is attributed to the owners of the parent and to the non-controlling interests even if this results in the noncontrolling interests having a deficit balance.

~13~

(d) Changes in a parent’s ownership interest in a subsidiary that do not result in the parent losing control of the subsidiary (transactions with non-controlling interests) are accounted for as equity transactions, i.e. transactions with owners in their capacity as owners. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognised directly in equity.
(e) When the Group loses control of a subsidiary, the Group remeasures any investment retained in the former subsidiary at its fair value. That fair value is regarded as the fair value on initial recognition of a financial asset or the cost on initial recognition of the associate or joint venture. Any difference between fair value and carrying amount is recognised in profit or loss. All amounts previously recognised in other comprehensive income in relation to the subsidiary are reclassified to profit or loss on the same basis as would be required if the related assets or liabilities were disposed of. That is, when the Group loses control of a subsidiary, all gains or losses previously recognised in other comprehensive income in relation to the subsidiary should be reclassified from equity to profit or loss, if such gains or losses would be reclassified to profit or loss when the related assets or liabilities are disposed of.

B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name of subsidiary	Main business activities Spinning, dyeing, printing, finishing and manufacturing synthetic fibre, rug and carpet Investing Investing Manufacturing and sale of cleaner and cosmetics Spinning Wholesale and retail of petrochemical and plastic raw materials		Ownership (%)	June30,2020 100.00 100.00 100.00 88.59 86.40 50.00	Description
			June30,2021 100.00 100.00 - 88.59 86.40 50.00	December31,2020 100.00 100.00 - 88.59 86.40 50.00
The Company The Company The Company The Company The Company The Company	Formosa FCFC Carpet Corp. FCFC Investment Corp. (Cayman) FCFC International Limited (Cayman) Formosa Biomedical Technology Corp. Tah Shin Spinning Corp. Formosa Idemitsu Petrochemical Corp.					The Company holds more than 50% of voting rights. (Note 6) The Company holds more than 50% of voting rights. The Company holds more than 50% of voting rights. (Note 1) (Note 6) The Company holds more than 50% of voting rights. (Note 6) The Company holds more than 50% of voting rights. (Note 3) (Note 6) The Company has substantial control and thus regards Formosa Idemitsu Petrochemical Corp. as a subsidiary. (Note 6)

~14~

Name of investor	Name of subsidiary	Main business activities Chemistry, international trade of petrochemistry Hydropower Production and marketing of textile, polyester staple fibre, cotton, hydropower Production and marketing of Polyamine fabric, Polyester fabric, cotton fabric, blended fabric and tire cord fabric Cogeneration power generation business Investing Producing and marketing of PTA Removal and disposal of waste		Ownership (%)	June30,2020 50.00 30.00 42.50 37.40 100.00 100.00 100.00 71.00	Description
			June30,2021 50.00 51.00 42.50 37.40 100.00 100.00 100.00 71.00	December31,2020 50.00 51.00 42.50 37.40 100.00 100.00 100.00 71.00
The Company The Company The Company The Company FCFC Investment Corp. (Cayman) FCFC Investment Corp. (Cayman) Formosa Chemicals & Fibre (Hong Kong) Co., Ltd. Formosa Biomedical Technology Corp.	Formosa BP Chemicals Corp. Chia-Nan Enterprise Corp. Formosa Industries Corp., Vietnam Formosa Taffeta Co., Ltd. Formosa Power (Ningbo) Co., Ltd. Formosa Chemicals & Fibre (Hong Kong) Co., Ltd. Formosa Chemicals Industries (Ningbo) Co., Ltd. Hong Jing Resources Corp.					The Company has substantial control and thus regards Formosa BP Chemicals Corp. as a subsidiary. (Note 6) The Company holds more than 50% of voting rights. (Note 2) (Note 6) The Company has substantial control and thus regards Formosa Industries Corp. as a subsidiary. (Note 6) The Company has substantial control and thus regards Formosa Taffeta Corp. as a subsidiary. The company holds more than 50% of voting rights through wholly-owned company - FCFC Investment Corp. (Cayman). The company holds more than 50% of voting rights through wholly-owned company - FCFC Investment Corp. (Cayman). The company holds more than 50% of voting rights through wholly-owned company - FCFC Investment Corp. (Hong Kong). The Company holds more than 50% of voting rights through an 88.59% voting rights owned company - Formosa Biochemical Technology Corp. (Note 6)

~15~

Name of investor	Name of subsidiary	Main business activities Investment Manufacturing industrial catalyst and wholesale of other chemical products Investing Importing, exporting and wholesale of heatlhy food Production of cotton, Terylene greige cloth, coloured cloth and textured processing yarn products Production and marketing of textile, polyester staple fibre, cotton, hydropower Assembly, testing, model processing and research and development of various integrated circuits Sale of Nylon and Polyamine fabric		Ownership (%)	June30,2020 100.00 57.00 51.00 100.00 100.00 100.00 100.00 100.00	Description
			June30,2021 100.00 57.00 51.00 100.00 100.00 100.00 100.00 100.00	December31,2020 100.00 57.00 51.00 100.00 100.00 100.00 100.00 100.00
Formosa Biomedical Technology Corp. Formosa Biomedical Technology Corp. Formosa Biomedical Technology Corp. Formosa Biomedical Technology (SAMOA) Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd.	Formosa Biomedical Technology (SAMOA) Co., Ltd. Formosa Waters Technology Co., Ltd. Formosa Bio & Energy Corp. (Japan) Formosa Biomedical Trading (Shanghai) Co., Ltd. Formosa Taffeta (Zhong Shan) Co., Ltd. Formosa Taffeta (Vietnam) Co., Ltd. Formosa Development Co., Ltd. Formosa Taffeta (Hong Kong) Co., Ltd.					Formosa Biochemical Technology holds more than 50% of voting rights. (Note 6) Formosa Biochemical Technology holds more than 50% of voting rights. (Note 6) Formosa Biochemical Technology holds more than 50% of voting rights. (Note 6) Formosa Biochemical Technology holds more than 50% of voting rights through a 100% owned company - Formosa Biomedical Technology (SAMOA) Co., Ltd. (Note 6) Formosa Taffeta Co., Ltd. holds more than 50% of voting rights. (Note 6) Formosa Taffeta Co., Ltd. holds more than 50% of voting rights. (Note 6) Formosa Taffeta Co., Ltd. holds more than 50% of voting rights. (Note 6) Formosa Taffeta Co., Ltd. holds more than 50% of voting rights. (Note 6)

~16~

Name of investor	Name of subsidiary	Main business activities Import and export, entrepot trade, merchandise export processing, warehousing and design and drawing of black and white and colour graphs Manufacturing of nylon and polyester filament products Investment Manufacturing of processing fabric of nylon filament knitted cloth, weaving and dyeing as well as post processing of knitted fabric Employment services and temporary worker services	June30,2021 December31,2020 - - 100.00 100.00 - - 100.00 100.00 100.00 100.00 Ownership (%)	June30,2020 100.00 100.00 100.00 100.00 100.00	Description
Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta (Hong Kong) Co., Ltd. Formosa Development Co., Ltd.	Xiamen Xiangyu Formosa Import & Export Trading Co., Ltd. Formosa Taffeta (Dong Nai) Co., Ltd. Formosa Taffeta (Cayman) Co., Ltd. Formosa Taffeta (Changshu) Co., Ltd. Public More Internation Co., Ltd.				Formosa Taffeta Co., Ltd. holds more than 50% of voting rights. (Note 4) (Note 6) Formosa Taffeta Co., Ltd. holds more than 50% of voting rights. (Note 6) Formosa Taffeta Co., Ltd. holds more than 50% of voting rights. (Note 5) (Note 6) Formosa Taffeta Co., Ltd. holds more than 50% of voting rights through a 100% owned company - Formosa Taffeta (Hong Kong) Co., Ltd. (Note 6) Formosa Taffeta Co., Ltd. holds more than 50% of voting rights through a 100% owned company - Formosa Development Co., Ltd. (Note 6)

Note 1: On May 7, 2020, the Board of Directors of the Company resolved to dissolve and liquidate the Group’s subsidiary, FCFC International Limited (Cayman). The Company holds 11.432% equity interest in Formosa Ha Tinh (Cayman) Limited which was formerly held by the subsidiary, FCFC International Limited (Cayman). The related liquidation procedure and equity transfer were completed in November 2020.
Note 2: 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. After the acquisition of additional equity interest, it was reclassified from ‘investment accounted for using equity method’ to a consolidated subsidiary.
Note 3: On August 25, 2020, Tah Shin Spinning Corporation has implemented the liquidation procedure.

~17~

Note 4: Xiamen Xiangyu Formosa Import & Export Trading Co., Ltd. has completed liquidation in July 2020.
Note 5: On May 7, 2020, the Board of Directors of Formosa Taffeta Co., Ltd. resolved to dissolve and liquidate the subsidiary, Formosa Taffeta (Cayman) Co., Ltd. Formosa Taffeta Co., Ltd. holds 3.847% equity interest in Formosa Ha Tinh (Cayman) Limited which was formerly held by Formosa Taffeta (Cayman) Co., Ltd. The related liquidation procedure and equity transfer have been completed in November 2020.
Note 6: The financial statements of the entity as of and for the six-month periods ended June 30, 2021 and 2020 were not reviewed by independent auditors as the entity did not meet the definition of a significant subsidiary.
C. Subsidiaries not included in the consolidated financial statements: None
D. Adjustments for subsidiaries with different balance sheet dates: None
E. Significant restrictions: None
F. Subsidiaries that have non-controlling interests that are material to the Group: As of June 30, 2021, December 31, 2020 and June 30, 2020, the non-controlling interest amounted to $53,734,819, $51,098,671 and $47,238,972, respectively. The information on non-controlling interest and respective subsidiary is as follows:

	Non-controllinginterest	Non-controllinginterest	Non-controllinginterest
June 30,	Ownership (%) 62.60 2021	Ownership Amount (%) 38,398,022 $ 62.60 December31,2020 Non-controllinginterest
the subsidiary: Amount 40,449,608 $
		June 30,	2020
		Amount 35,282,002 $	Ownership (%)
			62.60

Balance sheets

Balance sheets
			Formosa		Taffeta Co.,Ltd.
			June 30,2021	December 31,2020			June 30,2020
Current assets		$	16,790,189	$	15,579,258	$	16,384,861
Non-current assets			67,530,732		63,882,800		59,997,574
Current liabilities	(		9,343,373)	(	7,666,097)	(	11,792,221)
Non-current liabilities	(		10,223,599)	(	10,312,373)	(	8,044,715)
Total net assets		$	64,753,949	$	61,483,588	$	56,545,499

~18~

Statements of comprehensive income

			FormosaTaffeta Co.,Ltd.	FormosaTaffeta Co.,Ltd.	FormosaTaffeta Co.,Ltd.
		For the three-month period		For the three-month period
			ended June 30,2021		ended June	30,2020
Revenue	$		8,609,111	$		6,443,074
Profit before income tax			604,257			1,313,305
Income tax expense	(		56,797)	(		30,513)
Profit for the period from continuing
operations			547,460			1,282,792
Profit for the period			547,460			1,282,792
Other comprehensive income, net of
tax			3,922,081			2,229,374
Total comprehensive income for the
period		$	4,469,541	$		3,512,166
Comprehensive loss attributable to
non-controlling interest		$	-	$		-
			FormosaTaffeta Co.,Ltd.
		For the six-month period			For the six-month period
			ended June 30,2021		ended June	30,2020
Revenue		$	16,769,028	$		15,032,010
Profit before income tax			1,244,546			1,761,632
Income tax expense	(		123,174)	(		124,258)
Profit for the period from continuing
operations			1,121,372			1,637,374
Loss from discontinued operations			-	(		484)
Profit for the period			1,121,372			1,636,890
Other comprehensive income (loss),
net of tax			3,833,683	(		5,099,190)
Total comprehensive income (loss)
for the period		$	4,955,055	($		3,462,300)
Comprehensive loss attributable to
non-controlling interest		$	-	($		242)

~19~

Statements of cash flows

			FormosaTaffeta	FormosaTaffeta	FormosaTaffeta	Co.,Ltd.
		For the six-month period			For the six-month period
			ended June 30,2021			ended June 30,2020
Net cash provided by operating
activities		$	790,275		$	885,352
Net cash used in investing activities	(		448,763)	(		2,013,800)
Net cash (used in) provided by
financing activities	(		346,439)			457,766
Effect of exchange rates on cash and
cash equivalents	(		21,643)	(		9,267)
Decrease in cash and cash equivalents	(		26,570)	(		679,949)
Cash and cash equivalents, beginning
of period			3,083,322			3,236,624
Cash and cash equivalents, end of
period		$	3,056,752		$	2,556,675

(4) Foreign currency translation

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic environment in which the entity operates (the “functional currency”). The consolidated financial statements are presented in New Taiwan dollars, which is the Company’s functional and the Group’s 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 re-translated 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 re-translated 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.
(d) All foreign exchange gains and losses are presented in the statement of comprehensive income within ‘other gains and losses’.

~20~

B. Translation of foreign operations

(a) The operating results and financial position of all the group entities, 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 a subsidiary, cumulative exchange differences that were recorded in other comprehensive income are proportionately transferred to the non-controlling interest in this foreign operation. In addition, even when the Group retains partial interest in the former foreign subsidiary after losing control of the former foreign subsidiary, such transactions should be accounted for as disposal of all interest in the foreign operation.

(5) 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.

(6) 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.

~21~

(7) Financial assets at amortised cost

A. Financial assets at amortised cost are those that meet all of the following criteria:
- (a) The objective of the Group’s business model is achieved by collecting contractual cash flows.
- (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 amortised cost are recognised and derecognised using trade date accounting.
C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. Interest income from these financial assets is included in finance income using the effective interest method. A gain or loss is recognised in profit or loss when the asset is derecognised or impaired.
D. The Group’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at initial investment amount as the effect of discounting is immaterial.
(8) 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 Group measures the financial assets at fair value and recognises the transaction costs in profit or loss. The Group subsequently measures the financial assets at fair value, and recognises the gain or loss in profit or loss.
D. The Group recognises the dividend income when the right to receive payment is established, future economic benefits associated with the dividend will flow to the Group and the amount of the dividend can be measured reliably.
(9) 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 Group 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 Group’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.

~22~

C. At initial recognition, the Group measures the financial assets at fair value plus transaction costs. The Group 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 Group 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.
(10) Accounts and notes receivable
A. Accounts and notes receivable entitle the Group 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.
(11) Impairment of financial assets
For accounts receivable or contract assets that have a significant financing component, at each reporting date, the Group 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 Group recognises the impairment provision for lifetime ECLs.
(12) Derecognition of financial assets
The Group 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 Group 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 and the Group has not retained control of the financial asset.

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(13) 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.
(14) Investments accounted for using equity method /associates
A. Associates are all entities over which the Group 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. The Group’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 Group’s share of losses in an associate equals or exceeds its interest in the associate, including any other unsecured receivables, the Group does not recognise further losses, unless it has incurred legal or constructive obligations or made payments on behalf of the associate.
C. 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 Group’s ownership percentage of the associate, the Group recognises the Group’s share of change in equity of the associate in ‘capital surplus’ in proportion to its ownership.
D. Unrealised gains on transactions between the Group and its associates are eliminated to the extent of the Group’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 Group.
E. In the case that an associate issues new shares and the Group does not subscribe or acquire new shares proportionately, which results in a change in the Group’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 Group’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.

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F. Upon loss of significant influence over an associate, the Group remeasures any investment retained in the former associate at its fair value. Any difference between fair value and carrying amount is recognised in profit or loss.
G. When the Group 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.
H. When the Group 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.
(15) 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 Group 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:

Land improvements 3 ~ 15 years Buildings 10 ~ 60 years Machinery and equipment 5 ~ 15 years Transportation equipment 3 ~ 15 years Other equipment 2 ~ 15 years

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(16) 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 Group. For short-term leases or leases of lowvalue assets, lease payments are recognised as an expense on a straight-line basis over the lease term.
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 Group 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.

D. For lease modifications that decrease the scope of the lease, the lessee shall decrease the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognise the difference between remeasured lease liability in profit or loss.

(17) Intangible assets

Computer software is stated at cost and amortised on a straight-line basis over its estimated useful life.

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(18) Impairment of non-financial assets

The Group 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. 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.

(19) 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.

(20) 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.

(21) Financial liabilities at fair value through profit or loss

A. Financial liabilities are classified in this category of held for trading if acquired principally for the purpose of repurchasing in the short-term. Derivatives are also categorised as financial liabilities held for trading unless they are designated as hedges.
B. At initial recognition, the Group measures the financial liabilities at fair value. All related transaction costs are recognised in profit or loss. The Group subsequently measures these financial liabilities at fair value with any gain or loss recognised in profit or loss.

(22) Bonds payable

Ordinary corporate bonds issued by the Group are initially recognised at fair value less transaction costs. Any difference between the proceeds (net of transaction costs) and the redemption value is presented as an addition to or deduction from bonds payable, which is amortised to profit or loss over the period of bond circulation using the effective interest method as an adjustment to ‘finance costs’.

(23) 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.

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(24) 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.

(25) 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.

(26) 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 expense in that period when the employees render service.

B. Pensions
(a) Defined contribution plans

For defined contribution plans, the contributions are recognised as pension expense 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 plans
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 Group in current period or prior periods. The liability recognised in the balance sheet in respect of defined benefit pension plans 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 high-quality 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 Group uses interest rates of government bonds (at the balance sheet date) instead.
ii. Remeasurements arising on defined benefit plans 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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  - iv. Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. Also, the related information is disclosed accordingly.

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.
(27) 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 Group 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.

~29~

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.
G. The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pretax income of the interim period, and the related information is disclosed accordingly.
H. If a change in tax rate is enacted or substantively enacted in an interim period, the Group recognises the effect of the change immediately in the interim period in which the change occurs. The effect of the change on items recognised outside profit or loss is recognised in other comprehensive income or equity while the effect of the change on items recognised in profit or loss is recognised in profit or loss.

(28) 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.

(29) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders. Cash dividends are recorded as liabilities.

(30) Revenue recognition

Sales of goods

A. The Group 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.

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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 Group 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.

(31) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments.

5. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’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. The information is addressed below:

(1) Critical judgements in applying the Group’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 Group must use judgements and assumptions to determine the collectability of accounts receivable. The collectability is affected by various factors: customers’ financial conditions, the Group’s internal credit ratings, historical experience, etc. When sales are not expected to be collected, the Group 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.

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B. Evaluation of inventories

As inventories are stated at the lower of cost and net realisable value, the Group must determine the net realisable value of inventories on balance sheet date using judgements and estimates. Due to the rapid technology innovation, the Group 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 June 30, 2021, the carrying amount of inventories was $42,467,722.

6. Details of Significant Accounts

(1) Cash and cash equivalents

tails of Significant Accounts Cash and cash equivalents
Cash on hand and petty cash Checking accounts and demand deposits Cash equivalents Time deposits Bonds repurchased and commercial paper	June 30,2021 66,025 $ 7,986,085 11,779,416 3,411,990 23,243,516 $	December31,2020 62,263 $ 5,889,654 5,769,053 5,406,157 17,127,127 $	June 30,2020
			42,021 $ 7,042,132 14,356,397 833,217
			22,273,767 $

A. The Group 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 six-month periods ended June 30, 2021 and 2020, the Group did not recognise any loss allowance.
B. The Group has no cash and cash equivalents pledged to others.

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

Items			June 30,2021	December31,2020	December31,2020			June 30,2020
Financial assets mandatorily
measured at fair value
through profit or loss
Fund		$	4,191,897	$	4,085,299		$	4,085,299
Derivatives			-		82			612
			4,191,897		4,085,381			4,085,911
Valuation adjustments	(		273,727)	(	196,789)	(		62,379)
		$	3,918,170	$	3,888,592		$	4,023,532

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

loss are listed below:
		For the three-month period			For the three-month period
			ended June 30,2021			ended June 30,2020
Financial assets mandatorily measured
at fair value through profit or loss
Fund	($		86,235)	($		62,937)
Derivatives			-	(		24)
	($		86,235)	($		62,961)
		For the six-month period			For the six-month period
			ended June 30,2021			ended June 30,2020
Financial assets mandatorily measured
at fair value through profit or loss
Fund	($		76,939)	($		21,048)
Derivatives	(		82)			493
	($		77,021)	($		20,555)

B. The Group entered into contracts relating to derivative financial assets which were not accounted for under hedge accounting. The information is listed below: June 30, 2021: None.

June 30, 2021: None.
Derivative Instruments	December31,2020		June30,2020
	Contract Amount (Notional Principal) (in thousands)	Contract Period	Contract Amount (Notional Principal) (in thousands)	Contract Period
Forward exchange contracts: Taipei Fubon Taipei Fubon Taipei Fubon	USD 415 - -	December 2020 - January 2021 - -	JPY 99,820 JPY 99,820 JPY 97,460	June 2020 - July 2020 June 2020 - July 2020 June 2020 - August 2020

The forward exchange contracts are buy and sell to hedge the change of exchange rate due to import and export transactions, but not adopting hedge accounting.

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

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(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 Listed stocks Unlisted stocks Valuation adjustment	June 30,2021 24,450,527 $ 825,839 89,910,010 115,186,376 $ 8,163,125 $ 27,565,885 32,451,518 68,180,528 $	December 31,2020 24,450,527 $ 825,839 84,213,105 109,489,471 $ 8,163,125 $ 27,567,844 23,890,639 59,621,608 $	June 30,2020
			24,450,527 $ 825,839 67,833,249
			93,109,615 $
			8,163,126 $ 27,403,566 19,053,762
			54,620,454 $

A. The Group has elected to classify equity securities investments that are considered to be steady dividend income as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $183,366,904, $169,111,079 and $147,730,069 as at June 30, 2021, December 31, 2020 and June 30, 2020, respectively.
B. 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:

For the three-month period For the three-month period ended June 30, 2021 ended June 30, 2020

Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income $ 5,371,669 $ 10,714,080 Cumulative loss reclassified to retained earnings due to derecognition (including loss included in noncontrolling interest) ($ 29,311) $ -

For the six-month period For the six-month period ended June 30, 2021 ended June 30, 2020

Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income $ 14,274,723 ($ 29,761,910) Cumulative loss reclassified to retained earnings due to derecognition (including loss included in noncontrolling interest) ($ 31,925) $ -

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C. As at June 30, 2021, December 31, 2020 and June 30, 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 Group were $183,366,904, $169,111,079 and $147,730,069, respectively.
D. Information relating to credit risk of financial assets at fair value through other comprehensive income is provided in Note 12(3).

(4) Financial assets at amortised cost

==> picture [485 x 136] intentionally omitted <==

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

Items June 30, 2021 December 31, 2020 June 30, 2020
Current items:
Time deposits with original
maturity date of more than
three months $ 452,118 $ 1,116,878 $ -
Non-current items:
Time deposits with original
maturity date of more than
one year $ 1,500 $ 263,646 $ -
----- End of picture text -----

A. Amounts recognised in profit or loss in relation to financial assets at amortised cost are listed below:

below:
For the three-month period ended June 30, 2021 Interest income 1,395 $ For the six-month period ended June 30, 2021 Interest income 2,783 $	For the three-month period ended June 30, 2020
	- $
	For the six-month period ended June 30,2020
	- $

B. As at June 30, 2021, December 31, 2020 and June 30, 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 amortised cost held by the Group were $453,618, $1,380,524 and $0, respectively.
C. Details of the Group’s financial assets at amortised cost pledged to others as collateral are provided in Note 8.
D. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(3).

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(5) Notes and accounts receivable

Notes and accounts receivable
			June 30,2021	December31,2020					June 30,2020
Notes receivable		$	10,850,444		$	10,884,391		$	5,280,490
Less: Allowance for uncollectible
accounts			-			-			-
		$	10,850,444		$	10,884,391		$	5,280,490
Notes receivable - related parties		$	805		$	4,260		$	5,542
Accounts receivable		$	20,882,172		$	16,816,918		$	13,094,520
Less: Allowance for uncollectible
accounts	(		155,434)	(		155,882)	(		283,921)
		$	20,726,738		$	16,661,036		$	12,810,599
Accounts receivable - related parties		$	7,364,440		$	5,954,694		$	5,259,415

A. As of June 30, 2021, December 31, 2020 and June 30, 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 $28,378,198.
B. As of June 30, 2021, December 31, 2020 and June 30, 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 Group’s notes and accounts receivable were $10,851,249, $10,888,651 and $5,286,032, and accounts receivable were $28,091,178, $22,615,730 and $18,070,014, respectively.
C. Information relating to credit risk is provided in Note 12(3).

(6) Inventories

	June 30,2021
Cost 15,077,583 $ 7,183,588 5,982,523 15,520,974 104,980 43,869,648 $	Allowance for valuation loss (100,024) $ 551,850) ( 384) ( 749,668) ( - 1,401,926) ($	Bookvalue
		14,977,559 $ 6,631,738 5,982,139 14,771,306 104,980
		42,467,722 $

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Raw materials Materials Work in progress Finished goods Inventory in transit Raw materials Materials Work in progress Finished goods Inventory in transit	Cost Allowance for valuation loss 10,913,335 $ 103,825) ($ 7,648,298 567,218) ( 4,734,040 5,450) ( 11,162,332 846,920) ( 113,305 90) ( 34,571,310 $ 1,523,503) ($ December31,2020 Cost Allowance for valuation loss 10,575,132 $ 50,341) ($ 8,271,503 567,011) ( 4,615,000 72,998) ( 12,613,709 1,043,376) ( 103,364 110) ( 36,178,708 $ 1,733,836) ($ June 30,2020	Book value
		10,809,510 $ 7,081,080 4,728,590 10,315,412 113,215
		33,047,807 $
		Bookvalue
		10,524,791 $ 7,704,492 4,542,002 11,570,333 103,254
		34,444,872 $

A. Expense and loss incurred on inventories for the three-month and six-month periods ended June 30, 2021 and 2020 were as follows:

30, 2021 and 2020 were as follows:
			For the three-monthperiods endedJune30,
			2021			2020
Cost of inventories sold		$	78,020,351		$	50,303,405
Gain on inventory valuation (Note)	(		31,243)	(		1,388,223)
Idle capacity (including annual survey and
work stoppage)			186,284			859,855
Others			96,504			268,868
		$	78,271,896		$	50,043,905
			Forthe six-monthperiods ended June 30,
			2021			2020
Cost of inventories sold		$	144,984,660		$	111,139,124
Gain on inventory valuation (Note)	(		121,347)	(		44,159)
Idle capacity (including annual survey and
work stoppage)			348,867			1,165,836
Others			336,078			542,657
			145,548,258			112,803,458
Less: Operating cost from discontinued
operations			-	(		12,365)
		$	145,548,258		$	112,791,093

~37~

Note: For the three-month and six-month periods ended June 30, 2021 and 2020, disposal of excess inventory resulted in gain from price recovery of inventory.

B. As of June 30, 2021 and 2020, inventories pledged are described in Note 8.

(7) Investments accounted for using equity method

. Formosa Heavy Industries Corp. Formosa Fairway Corp. Formosa Plastics Transport Corp. Formosa Petrochemical Corp. Mai Liao Power Corp. Hwa Ya Science Park Management Consulting Co., Ltd. Formosa Environmental Technology Corp. Formosa Synthetic Rubber Corp. (Hong Kong) Formosa Resources Corp. Formosa Group (Cayman) Corp. Formosa Construction Corp. FG INC. Beyoung International Corp. Formosa Advanced Technologies Co., Ltd. Nan Ya Optical Corp. Kuang Yueh Co., Ltd. Changshu Yu Yuan Co., Ltd. Schoeller Textil AG Chia-Nan Enterprise Corp. Formosa Synthetic Rubber Corp.	June 30,2021 7,371,888 $ 64,615 1,225,841 80,436,939 12,255,661 3,031 228,530 2,216,358 6,875,665 646,638 588,659 3,364,004 94,197 5,239,947 186,324 1,230,728 16,223 1,132,432 - - $123,177,680	December31,2020 7,102,774 $ 68,247 1,177,559 74,133,567 12,414,449 3,029 227,350 2,308,051 6,169,287 649,229 568,354 3,458,577 94,328 5,003,040 196,554 1,167,551 16,483 1,270,603 - - $ 116,029,032	June 30,2020
			6,590,382 $ 62,399 1,127,590 64,466,687 10,750,103 2,536 226,370 2,248,080 6,463,199 669,167 71,977 3,615,008 95,251 4,978,643 - 1,278,854 14,882 1,254,315 230,216 61,236
			$104,206,895

A. Associates

(a) The basic information of the associate that is material to the Group is as follows:

Shareholding ratio

Principal Company place of June 30, December June 30, Nature of Method of name business 2021 31, 2020 2020 relationship measurement Formosa Taiwan 24.15% 24.15% 24.15% Investments Equity Petrochemical accounted for method Corp. using equity method

~38~

(b) The summarised financial information of the associate that is material to the Group is shown below:

Balance sheets

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

Formosa Petrochemical Corp.
. June 30, 2021 December 31, 2020 June 30, 2020
Current assets $ 246,696,278 $ 212,621,640 $ 186,418,321
Non-current assets 158,537,221 157,332,180 161,577,566
Current liabilities ( 36,340,274) ( 27,677,805) ( 61,337,183)
Non-current liabilities ( 34,395,929) ( 34,174,656) ( 19,929,599)
Total net assets $ 334,497,296 $ 308,101,359 $ 266,729,105
Share in associate's net assets $ 80,781,097 $ 74,406,478 $ 64,415,078
Unrealised (gain) loss from sale
of upstream transactions
eliminations ( 233,439) ( 162,192) 162,328
Net differences in share capital ( 110,719) ( 110,719) ( 110,719)
Carrying amount of the associate $ 80,436,939 $ 74,133,567 $ 64,466,687
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Statements of comprehensive income

			Formosa PetrochemicalCorp.	Formosa PetrochemicalCorp.	Formosa PetrochemicalCorp.
		For the three-month period			For the three-month period
			endedJune30,2021		endedJune	30,2020
Revenue		$	144,295,507		$	79,523,156
Profit (loss) for the period from
continuing operations		$	13,604,232	($		8,657,137)
Other comprehensive (loss)
income, net of tax	(		5,364,284)			3,649,153
Total comprehensive income
(loss)		$	8,239,948	($		5,007,984)
			FormosaPetrochemicalCorp.
			For the six-month period		For the six-month period
			ended June 30,2021		ended June	30,2020
Revenue		$	273,950,124		$	216,315,324
Profit (loss) for the period from
continuing operations		$	31,505,067	($		18,650,342)
Other comprehensive income
(loss), net of tax			511,207	(		17,219,024)
Total comprehensive income
(loss)		$	32,016,274	($		35,869,366)

~39~

(c) The carrying amount of the Group’s interests in all individually immaterial associates and the Group’s share of the operating results are summarised below:
As of June 30, 2021, December 31, 2020 and June 30, 2020, the carrying amount of the Group’s individually immaterial associates amounted to $42,740,741, $41,895,465 and $39,740,208, respectively.

$39,740,208, respectively.
		For the three-month period				For the three-month period
			ended June 30,2021			ended June 30,2020
Profit for the period from
continuing operations		$		1,468,684		$		4,782,174
Other comprehensive loss, net
of tax	(			3,217,343)	(			2,513,730)
Total comprehensive (loss)
income	($			1,748,659)		$		2,268,444
			For the six-month period			For the	six-month period
			ended June 30, 2021			ended June 30,2020
Profit for the period from
continuing operations		$		1,861,000		$		3,335,446
Other comprehensive loss, net
of tax	(			1,556,549)	(			7,042,363)
Total comprehensive income
(loss)		$		304,451	($			3,706,917)
The fair value of the Group’s associates which have quoted market price was								as follows:
			June 30,2021	December 31,2020				June 30,2020
Formosa Petrochemical Corp.		$	245,035,179	229,619,820 $			$	203,620,782
Kuang Yueh Co., Ltd.			2,418,696	2,009,378				2,539,631
Formosa Advanced Technologies
Co., Ltd.			5,453,047	5,146,696				5,207,966
		$	252,906,922	236,775,894 $			$	211,368,379

(d) The fair value of the Group’s associates which have quoted market price was as follows:
B. Except for the financial statements of Formosa Petrochemical Corp. and Formosa Advanced Technologies Co., Ltd., which were reviewed by the Company’s appointed independent auditors, the financial statements of other investees accounted for using equity method for the six-month periods ended June 30, 2021 and 2020 were not reviewed.
C. On August 8, 2019, the Board of Directors of the Company resolved to increase its investment in the reinvested company, Formosa Resources Corp. The Company participated in the capital increase proportionately to its shareholding ratio, 25%, in the amount of USD 81,250 thousand. The actual investments were USD 31,250 thousand and USD 50,000 thousand on March 10, 2021 and August 19, 2019, respectively.

~40~

D. On November 6, 2020, the Board of Directors of the Group resolved to increase its investment in Formosa Construction Corporation in the amount of $500,000, and the shareholding ratio was 33.33%.
E. After the Group acquired an additional equity interest in Chia-Nan Enterprise Corp. on September 24, 2020, Chia-Nan Enterprise Corp. became the Group’s consolidated subsidiary. Details are provided in Note 4(3).
F. On October 17, 2019, the Board of Directors of Formosa Taffeta Co., Ltd. resolved to increase its investment in Schoeller Textil AG, in the amount of CHF 39,580 thousand, for a 50% equity interest on March 18, 2020. Formosa Taffeta Co., Ltd. has significant influence but not control over Schoeller Textil AG, so the Group uses equity method for valuation.
G. In August 2020, the Group’s subsidiary, Formosa Taffeta Co., Ltd., increased its capital in Nan Ya Optical Corp. amounting to $66,938 thousand. Formosa Taffeta Co., Ltd.’s shareholding ratio increased to 15.22% and became a director of the investee. Based on the assessment, Formosa Taffeta Co., Ltd. has significant influence over the investee’s management decisions, so the Group reclassified the investment from financial assets at fair value through other comprehensive income to investments accounted for using equity method.
H. The Board of Directors resolved to invest USD 27,060 thousand and USD 24,750 thousand, equivalent to 33% ownership, in FG INC. on March 13, 2020 and March 15, 2019, respectively.
I. On December 13, 2019, the Board of Directors resolved to increase its capital in Formosa Synthetic Rubber Corp. amounting to USD 46,000 thousand, 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.
J. As of June 30, 2021 and 2020, no equity investments by the Group were pledged to others.

~41~

(8) Property, plant and equipment

==> picture [486 x 412] intentionally omitted <==

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

Transportation Construction in
equipment progress and
Land and land Machinery and other equipment to
. improvements Buildings and equipment equipment be inspected Total
At January 1, 2021
Cost $ 11,999,807 $ 47,810,013 $ 294,135,290 $ 11,786,257 $ 27,267,912 $ 392,999,279
Accumulated
depreciation
and impairment ( 166,627) ( 27,634,688) ( 228,341,490) ( 9,587,514) - ( 265,730,319)
$ 11,833,180 $ 20,175,325 $ 65,793,800 $ 2,198,743 $ 27,267,912 $ 127,268,960
2021
Opening net
book amount $ 11,833,180 $ 20,175,325 $ 65,793,800 $ 2,198,743 $ 27,267,912 $ 127,268,960
Additions - 370,010 772,741 76,341 6,030,903 7,249,995
-
Disposals ( 2,100) ( 434) ( 9,243) ( 2,013) ( 13,790)
Reclassifications - 759,018 7,820,254 283,690 ( 8,760,568) 102,394
Depreciation
- -
charge ( 751,203) ( 5,651,306) ( 218,578) ( 6,621,087)
Net exchange
differences ( 15) ( 204,337) ( 446,685) ( 11,708) ( 232,978) ( 895,723)
Closing net
book amount $ 11,831,065 $ 20,348,379 $ 68,279,561 $ 2,326,475 $ 24,305,269 $ 127,090,749
At June 30, 2021
Cost $ 11,997,555 $ 48,608,318 $ 300,831,241 $ 12,054,568 $ 24,305,269 $ 397,796,951
Accumulated
depreciation
and impairment ( 166,490) ( 28,259,939) ( 232,551,680) ( 9,728,093) - ( 270,706,202)
$ 11,831,065 $ 20,348,379 $ 68,279,561 $ 2,326,475 $ 24,305,269 $ 127,090,749
----- End of picture text -----

~42~

								Transportation	Transportation	Construction in	Construction in
									equipment	progress and
		Land and land					Machinery		and other	equipment to
.		improvements			Buildings	and equipment			equipment		be inspected		Total
At January 1, 2020
Cost	$		12,006,023	$	47,389,611	$	287,677,051	$	11,160,902	$	20,151,498	$	378,385,085
Accumulated
depreciation
and impairment	(		169,272)	(	26,239,546)	(	218,163,656)	(	9,141,559)		-	(	253,714,033)
	$		11,836,751	$	21,150,065	$	69,513,395	$	2,019,343	$	20,151,498	$	124,671,052
2020
Opening net
book amount	$		11,836,751	$	21,150,065	$	69,513,395	$	2,019,343	$	20,151,498	$	124,671,052
Additions			-		-		76,423		41,402		8,774,813		8,892,638
Disposals	(		2,645)		-	(	56,838)	(	5,582)	(	25)	(	65,090)
Reclassifications			-		259,325		2,932,816		215,330	(	3,239,706)		167,765
Depreciation
charge			-	(	737,338)	(	5,734,175)	(	181,531)		-	(	6,653,044)
Disposals-
discontinued
operations			-		-		-	(	15)		-	(	15)
Net exchange
differences	(		36)	(	290,966)	(	821,787)	(	13,594)	(	365,605)	(	1,491,988)
Closing net
book amount	$		11,834,070	$	20,381,086	$	65,909,834	$	2,075,353	$	25,320,975	$	125,521,318
At June 30, 2020
Cost	$		12,002,947	$	47,177,224	$	288,052,956	$	11,298,024	$	25,320,975	$	383,852,126
Accumulated
depreciation
and impairment	(		168,877)	(	26,796,138)	(	222,143,122)	(	9,222,671)		-	(	258,330,808)
	$		11,834,070	$	20,381,086	$	65,909,834	$	2,075,353	$	25,320,975	$	125,521,318

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 three-month periods ended June 30, 2021 2020 Amount capitalised $ 28,191 $ 54,383 Interest rate 0.71%~3.02% 0.99%~4.25%

Amount capitalised Interest rate

Forthe six-month	periods June 30,
2021 49,948 $ 0.71%~3.02%	2020
	78,391 $
	0.99%~4.25%

~43~

B. Under the regulations, land may only be owned by individuals. Thus, the Group has already obtained ownership of the agricultural land for future plant expansion which was acquired by the Group under the name of a third party, who has pledged the full amount to the Company. As of June 30, 2021, December 31, 2020 and June 30, 2020, the pledged amounts were $820,894, $822,993 and $822,993, respectively.
C. Information about the property, plant and equipment that were pledged to others as collateral is provided in Note 8.
－
(9) Leasing arrangements lessee
A. The Group leases various assets including land and buildings. Rental contracts are typically made for periods of 2 to 49 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:

Land Buildings Land Buildings Land Buildings	June30,2021 December31,2020 June30,2020 Carryingamount Carryingamount Carryingamount 1,497,094 $ 1,508,098 $ 1,571,323 $ 44,303 33,746 31,552 1,541,397 $ 1,541,844 $ 1,602,875 $ For the three-month period For the three-month period ended June 30,2021 ended June 30,2020 Depreciationcharge Depreciationcharge 50,741 $ 44,609 $ 14,183 8,598 64,924 $ 53,207 $ For the six-month period For the six-month period endedJune30,2021 endedJune30,2020 Depreciationcharge Depreciationcharge 82,624 $ 87,537 $ 22,488 17,216 105,112 $ 104,753 $	June30,2021 December31,2020 June30,2020 Carryingamount Carryingamount Carryingamount 1,497,094 $ 1,508,098 $ 1,571,323 $ 44,303 33,746 31,552 1,541,397 $ 1,541,844 $ 1,602,875 $ For the three-month period For the three-month period ended June 30,2021 ended June 30,2020 Depreciationcharge Depreciationcharge 50,741 $ 44,609 $ 14,183 8,598 64,924 $ 53,207 $ For the six-month period For the six-month period endedJune30,2021 endedJune30,2020 Depreciationcharge Depreciationcharge 82,624 $ 87,537 $ 22,488 17,216 105,112 $ 104,753 $	June30,2020
			Carryingamount
			1,571,323 $ 31,552 1,602,875 $
		Depreciationcharge
		44,609 $ 8,598
		53,207 $
		For the six-month period endedJune30,2020
		Depreciationcharge
		87,537 $ 17,216
		104,753 $

C. For the three-month and six-month periods ended June 30, 2021 and 2020, the additions to rightof-use assets were $34,828 and $5,203, $134,990 and $110,086, respectively.

~44~

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 Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on variable lease payments	For the three-month period endedJune30,2021 3,402 $ 9,942 380 For the six-month period ended June 30,2021 5,611 $ 18,061 1,139	For the three-month period endedJune30,2020
		3,102 $ 9,552 747 For the six-month period ended June 30,2020
		5,805 $ 17,991 1,640

E. For the six-month periods ended June 30, 2021 and 2020, the Group’s total cash outflow for leases were $116,485 and $117,002, respectively.

(10) Non-current assets held for sale and discontinued operations

A. On October 17, 2019, the Board of Directors of Formosa Taffeta Co., Ltd. resolved to dispose all its equity interest in Schoeller F.T.C. (Hong Kong) Co., Ltd. to Schoeller Textil AG for a consideration of $6,028, and the gain on disposal recognised in profit and loss was $165. The transfer of shares was completed on March 16, 2020. The disposal was presented as discontinued operation as it met the definition of discontinued operation. Accordingly, the Group made a restatement to the recognised profit or loss in relation to Schoeller F.T.C. (Hong Kong) Co., Ltd. rather than retrospective adjustment for the six-month period ended June 30, 2020.
B. The cash flow information of the discontinued operations is as follows:

	For the six-month period	For the six-month period
		ended June 30, 2020
Operating cash flows	($	2,544)
Investing cash flows		-
Financing cash flows		-
Total cash flows	($	2,544)

~45~

C. Analysis of the result of discontinued operations, and the result recognised on the remeasurement of assets or disposal group, is as follows:

of assets or disposal group, is as follows:
		For the six-month period
			ended June 30,2020
Revenue		$	17,555
Costs	(		12,365)
Expenses	(		5,589)
Non-operating income and expenses	(		85)
Loss before tax of discontinued operations	(		484)
Loss after tax of discontinued operations	($		484)

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

Short-term loans and short-term notes and bills payable
Type of loans June 30,2021 OA loans 10,759 $ Secured loans 40,000 Unsecured loans 16,330,490 Total short-term loans 16,381,249 $ Short-term notes and bills payable 12,000,000 $ Short-term notes and bills payable discount 5,107) ( Net short-term notes and bills payable 11,994,893 $ Type of loans December31,2020 OA loans 4,783 $ Secured loans 40,000 Unsecured loans 19,010,837 Total short-term loans 19,055,620 $ Short-term notes and bills payable 16,100,000 $ Short-term notes and bills payable discount 3,267) ( Net short-term notes and bills payable 16,096,733 $	Interestraterange 0.74% 1.20% 0.70%~2.90% 0.24%~0.30% Interestraterange 0.84% 1.40% 0.75%~4.05% 0.20%~0.25%	Collateral
		None Note 8 None None Collateral
		None Note 8 None None

~46~

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

Type of loans June 30, 2020 Interest rate range Collateral
OA loans $ 27,399 0.49%~0.94% None
Secured loans 3,692,624 1.16%~3.55% Note 8
Unsecured loans 35,402,770 0.78%~3.50% None
Total short-term loans $ 39,122,793
Short-term notes and bills
payable $ 18,800,000 0.37%~0.84% None
Short-term notes and bills
payable discount ( 13,782)
Net short-term notes and
bills payable $ 18,786,218
Financial liabilities at fair value through profit or loss
Items June 30, 2021 December 31, 2020 June 30, 2020
Current items:
Derivatives $ - $ 137 $ 48
----- End of picture text -----

(12) Financial liabilities at fair value through profit or loss

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

Items Derivatives Items Derivatives	For the three-month period For the three-month period ended June 30, 2021 endedJune30,2020 - $ 42) ($ For the six-month period For the six-month period ended June 30,2021 ended June 30,2020 137 $ 32 $

B. The non-hedging derivative instruments transaction and contract information are as follows: June 30, 2021: None.

June 30, 2021: None.
Derivative Financial Liabilities	December31,2020		June30,2020
	Contract Amount (Notional Principal) (in thousands)	Contract Period	Contract Amount (Notional Principal) (in thousands)	Contract Period
Current items: Forward foreign exchange contracts: Taipei Fubon Taipei Fubon	USD 415 USD 583	December 2020 - January 2021 December 2020 - February 2021	JPY 99,820 JPY 99,820	June 2020 - July 2020 June 2020 - July 2020

The forward exchange contracts are buy and sell to hedge the change of exchange rate due to import and export transactions, but not adopting hedge accounting.

~47~

(13) Other payables

Other payables
		June 30,2021	December31,2020			June 30,2020
Dividend payable	$	16,955,118	$	91,376	$	25,081,934
Salaries payable		1,343,631		1,980,419		1,435,978
Payables for construction project		756,108		1,653,385		1,742,990
Accrued interest payable		422,231		402,311		406,967
Utilities payable		155,520		106,090		113,353
Freight payable		145,876		98,129		59,719
Others		4,411,828		4,324,533		5,137,518
	$	24,190,312	$	8,656,243	$	33,978,459

(14) Bonds payable

Bonds payable
		June 30, 2021	December 31, 2020				June 30,2020
Bonds payable
Domestic unsecured nonconvertible
corporate bonds	$	52,100,000	$	42,100,000		$	33,450,000
Less: Current portion	(	3,150,000)	(	2,050,000)	(		1,350,000)
	$	48,950,000	$	40,050,000		$	32,100,000

The terms of nonconvertible corporate bonds were as follows:

Description	Issuance date	Maturity date	Yield rate(%)	Issued principal amount	June30,2021	December31,2020	June30,2020	Note
Second issued domestic unsecured nonconvertible corporate bonds - C Third issued domestic unsecured nonconvertible corporate bonds - B First issued domestic unsecured nonconvertible corporate bonds - B 2012 2013	2012.12.7 2013.1.22 2013.7.8	2021.12.7~ 2022.12.7 2022.1.22~ 2023.1.22 2019.7.8~ 2020.7.8	1.51 1.50 1.38	$ 4,100,000 2,200,000 2,700,000	$ 4,100,000 2,200,000 -	$ 4,100,000 2,200,000 -	4,100,000 $ 2,200,000 1,350,000	Serial bonds, to be settled 50%, 50% Serial bonds, to be settled 50%, 50% Serial bonds, to be settled 50%, 50%

~48~

Description	Issuance date	Maturity date	Yield rate(%)	Issued principal amount	June30,2021	December31,2020	June30,2020	Note
First issued domestic unsecured nonconvertible corporate bonds - C Second issued domestic unsecured nonconvertible corporate bonds First issued domestic unsecured nonconvertible corporate bonds - A First issued domestic unsecured nonconvertible corporate bonds - B First issued domestic unsecured nonconvertible corporate bonds - A First issued domestic unsecured nonconvertible corporate bonds - B First issued domestic unsecured nonconvertible corporate bonds - C 2014 2019	2013.7.8 2014.1.17 2014.7.4 2014.7.4 2019.5.13 2019.5.13 2019.5.13	2022.7.8~ 2023.7.8 2025.1.17~ 2026.1.17 2023.7.4 ~ 2024.7.4 2028.7.4 ~ 2029.7.4 2023.5.13~ 2024.5.13 2025.5.13~ 2026.5.13 2028.5.13~ 2029.5.13	1.52 2.03 1.81 2.03 0.75 0.83 0.93	$ 2,800,000 10,000,000 1,400,000 4,600,000 3,300,000 3,000,000 700,000	$ 2,800,000 10,000,000 1,400,000 4,600,000 3,300,000 3,000,000 700,000	$ 2,800,000 10,000,000 1,400,000 4,600,000 3,300,000 3,000,000 700,000	$ 2,800,000 10,000,000 1,400,000 4,600,000 3,300,000 3,000,000 700,000	Serial bonds, to be settled 50%, 50% Serial bonds, to be settled 50%, 50% Serial bonds, to be settled 50%, 50% Serial bonds, to be settled 50%, 50% Serial bonds, to be settled 50%, 50% Serial bonds, to be settled 50%, 50% Serial bonds, to be settled 50%, 50%

~49~

Description	Issuance date	Maturity date	Yield rate(%)	Issued principal amount June 30,2021 $ 2,900,000 $ 2,900,000 5,200,000 5,200,000 1,900,000 1,900,000 6,000,000 6,000,000 4,000,000 4,000,000 52,100,000 3,150,000) ( 48,950,000 $	December 31,2020	June 30,2020	Note
First issued domestic unsecured nonconvertible corporate bonds - A 2020.9.3 2024.9.3~ 2025.9.3 First issued domestic unsecured nonconvertible corporate bonds - B 2020.9.3 2026.9.3~ 2027.9.3 First issued domestic unsecured nonconvertible corporate bonds - C 2020.9.3 2029.9.3~ 2030.9.3 First issued domestic unsecured nonconvertible corporate bonds - A 2021.5.10 2025.5.10~ 2026.5.10 First issued domestic unsecured nonconvertible corporate bonds - B 2021.5.10 2027.5.10~ 2028.5.10 2020 Less: Current portion of bonds payable 2021			0.52 0.60 0.67 0.48 0.56		$ 2,900,000 5,200,000 1,900,000 - - 42,100,000 2,050,000) ( 40,050,000 $	$ - - - - - 33,450,000 1,350,000) ( 32,100,000 $	Serial bonds, to be settled 50%, 50% Serial bonds, to be settled 50%, 50% Serial bonds, to be settled 50%, 50% Serial bonds, to be settled 50%, 50% Serial bonds, to be settled 50%, 50%

~50~

- (15) Long term bank loans and notes payable

Type of loans	Borrowing period/repayment term	Interest rate range	Collateral	June30,2021
Taipei Fubon Bank First Commercial Bank Hua Nan Bank Mizuho Corporate Bank E. Sun Bank China Trust Bank Taipei Fubon Bank MUFG Bank Long-term bank loans Unsecured loans	Jul. 17, 2019 ~ Jul. 17, 2024, each 50% of principal is payable starting from 4 years and 5 years after the first drawdown Jul. 15, 2020 ~ Jul. 15, 2025, principal payable semi-annually after 4 years Jan. 15, 2021 ~ Jan. 15, 2023, principal payable at maturity date Aug. 13, 2020 ~ Aug. 13, 2022, payable in full at maturity Dec. 15, 2020 ~ Dec. 14, 2023, payable in full at maturity Sep. 11, 2020 ~ Sep. 11, 2022, payable in full at maturity Mar. 12, 2021 ~ Mar. 12, 2023, payable in full at maturity Aug. 13, 2020 ~ Aug. 13, 2022, payable in full at maturity	LIBOR+0.78% (if TAIFX is higher than LIBOR+0.42%, the difference between TAIFX and LIBOR+0.42% is payable by the borrower) 1 to 5 years (including 5 years) rate of LPR- 0.8125% 0.83% 0.82% 0.88% 0.87% 0.72% 0.83%	None " " " " " " "	5,575,444 $ 496,001 1,500,000 1,300,000 200,000 500,000 1,500,000 800,000

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Type of loans	Borrowing period/repayment term Interest rate range Aug. 13, 2020 ~ Aug. 13, 2022, payable in full at maturity 0.83% Dec. 3, 2020 ~ Dec. 2, 2022, payable in full at maturity 0.88% Aug. 20, 2020 ~ Aug. 10, 2023, payable in full at maturity 0.83% Sep. 21, 2020 ~ Sep. 21, 2022, payable in full at maturity 0.83% long-term loans	Collateral None " " "	June30,2021
HSBC Bangkok Bank Far Eastern International Bank Mega International Commercial Bank Less: Current portion of			1,200,000 $ 200,000 700,000 1,000,000 14,971,445 - 14,971,445 $

~52~

Type of loans	Borrowing period/repayment term	Interest rate range	Collateral	December31,2020
Taipei Fubon Bank First Commercial Bank Hua Nan Bank Mizuho Corporate Bank E. Sun Bank China Trust Bank Taipei Fubon Bank MUFG Bank Long-term bank loans Unsecured loans	Jul. 17, 2019 ~ Jul. 17, 2024, each 50% of principal is payable starting from 4 years and 5 years after the first drawdown Jul. 15, 2020 ~ Jul. 15, 2025, principal payable semi-annually after 4 years Jan. 15, 2020 ~ Jan. 15, 2022, principal payable at maturity date Aug. 13, 2020 ~ Aug. 13, 2022, payable in full at maturity Dec. 15, 2020 ~ Dec. 14, 2023, payable in full at maturity Sep. 11, 2020 ~ Sep. 11, 2022, payable in full at maturity Aug. 13, 2020 ~ Mar. 20, 2022, payable in full at maturity Aug. 13, 2020 ~ Aug. 13, 2022, payable in full at maturity	LIBOR+0.78% (if TAIFX is higher than LIBOR+0.42%, the difference between TAIFX and LIBOR+0.42% is payable by the borrower) 1 to 5 years (including 5 years) rate of LPR- 0.8125% 0.75% 0.82% 0.89% 0.89% 0.72% 0.85%	None " " " " " " "	7,161,828 $ 179,439 1,500,000 1,300,000 200,000 500,000 1,500,000 500,000

~53~

Type of loans	Borrowing period/repayment term	Interest raterange	Collateral None " " " " Endorsement and guarantees of Formosa Taffeta Co., Ltd.	December31,2020
MUFG Bank HSBC Bangkok Bank Far Eastern International Bank Mega International Commercial Bank Hua Nan Bank China Trust Bank ANZ Secured loans Less: Current portion of	Aug. 13, 2020 ~ Aug. 13, 2022, payable in full at maturity Aug. 13, 2020 ~ Aug. 13, 2022, payable in full at maturity Dec. 3, 2020 ~ Dec. 2, 2022, payable in full at maturity Aug. 20, 2020 ~ Aug. 10, 2023, payable in full at maturity Sep. 21, 2020 ~ Sep. 21, 2022, payable in full at maturity Apr. 1, 2018 ~ Mar. 31, 2021, principal payable annually long-term loans	0.83% 0.83% 0.90% 0.90% 0.90% 2.27%		300,000 $ 1,200,000 200,000 700,000 1,000,000 56,821 16,298,088 56,821) ( 16,241,267 $

~54~

Type of loans	Borrowing period/repayment term	Interest rate range	Collateral	June30,2020
Taipei Fubon Bank Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Banking Corporation Mega International Commercial Bank Mega International Commercial Bank Long-term bank loans Unsecured loans	Jul. 17, 2019 ~ Jun. 17, 2024, each 50% of principal is payable starting from 4 years and 5 years after the first drawdown Jan. 22, 2017 ~ Jul. 22, 2021, domestic: one hundred million principal payable semi- annually after Apr. 16, 2017; overseas: one hundred and ten million payable semi-annually after Apr. 16, 2017 with a two-year extension Jan. 22, 2017 ~ Jul. 22, 2021, principal payable semi-annually after Apr. 16, 2017 with a two- year extension Oct. 23, 2017 ~ Oct. 23, 2022, principal payable semi-annually after 18 months Nov. 17, 2016 ~ Nov. 17, 2021, principal payable semi-annually after 18 months	LIBOR+0.78% (if TAIFX is higher than LIBOR+0.42%, the difference between TAIFX and LIBOR+0.42% is payable by the borrower) LIBOR+1.55% LIBOR+1.45% and TAIFX+0.4% higher 1 to 5 years (including 5 years) rate of CBC, 4.75% 1 to 5 years (including 5 years) rate of CBC, 4.75%	None " " " "	6,522,912 $ 778,302 111,186 1,145,426 370,357

~55~

Type of loans	Borrowing period/repayment term	Interest rate range	Collateral	June30,2020
Hua Nan Bank Sino Pac Bank First Commercial Bank Mizuho Corporate Bank E. Sun Bank China Trust Bank Taipei Fubon Bank Bangkok Bank Far Eastern International Bank Mega International Commercial Bank	Jan. 15, 2020 ~ Jan. 15, 2022, principal payable at maturity date Jun. 19, 2019 ~ Jun. 19, 2021, payable in full at maturity Sep. 10, 2019 ~ Sep. 10, 2022, payable in full at maturity Aug. 16, 2019 ~ Aug. 16, 2021, payable in full at maturity Nov. 20, 2018 ~ Nov. 19, 2021, payable in full at maturity Sep. 17, 2019~ Sep. 17, 2021, payable in full at maturity Oct. 22, 2019 ~ Jul. 21, 2021, payable in full at maturity Dec. 3, 2019 ~ Dec. 2, 2021, payable in full at maturity Sep. 20, 2019 ~ Sep. 6, 2022, payable in full at maturity Aug. 21, 2019 ~ Aug. 21, 2021, payable in full at maturity	0.75% 1.00% 0.95% 0.98% 0.97% 0.97% 0.73% 1.03% 0.98% 0.98%	None " " " " " " " " "	$ 500,000 300,000 1,500,000 500,000 200,000 500,000 1,000,000 200,000 700,000 1,000,000

~56~

Borrowing period/repayment term Hua Nan Bank China Trust Bank ANZ Apr. 1, 2018 ~ Mar. 31, 2021, principal payable annually Secured loans Less: Current portion of long-term loans Type of loans	Interest rate range Collateral June30,2020 4.25% Endorsement and guarantees of Formosa Taffeta Co,. Ltd. 88,651 $ 15,416,834 1,251,535) ( 14,165,299 $

The collaterals for long-term bank loans are described in Note 8.

(16) Pensions

A. (a) The Company and its domestic subsidiaries have a defined benefit pension plan in accordance with the Labor Standards Law, 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 Law. 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 and its domestic subsidiaries contribute 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 and its domestic subsidiaries 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 and its domestic subsidiaries will make contributions for the deficit by next March.
(b) For the aforementioned pension plan, the Group recognised pension costs of $31,233 and $39,935, $62,717 and $79,957 for the three-month and six-month periods ended June 30, 2021 and 2020, respectively.
(c) Expected contributions to the defined benefit pension plans of the Group for the year ending December 31, 2022 amount to $111,610.

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B. (a) From July 1, 2005, the Company and its domestic subsidiaries have 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 and its domestic subsidiaries contribute 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 Company’s mainland subsidiaries have a defined contribution plan. Monthly contributions to an independent fund administered by the government in accordance with the pension regulations in the People’s Republic of China (PRC) are based on a certain percentage of employees’ monthly salaries and wages. The contribution percentage was 10~20% for the three-month and six-month periods ended June 30, 2021 and 2020. Other than the monthly contributions, the Group has no further obligations.
- (c) The pension costs under the defined contribution pension plans of the Group for the threemonth and six-month periods ended June 30, 2021 and 2020 were $94,966 and $83,634, $186,116 and $169,706, respectively.
(17) Capital stock
A. As of June 30, 2021, the Company’s authorised and paid-in capital was $58,611,863, and total issued stocks was 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 six-month periods ended June 30, 2021 and 2020 are set forth below:

forth below:
Reason for reacquisition	Subsidiary Formosa Taffeta Co. Subsidiary Formosa Taffeta Co.	For the six-month period ended June 30, 2021
		Beginning Ending shares shares 12,169,610 - - 12,169,610 Additions Disposal Forthe six-monthperiod ended June 30,2020
Parent company shares held by subsidiaries reclassified from long-term investment to treasury stock Reason for reacquisition
		Beginning Ending shares shares 12,169,610 - - 12,169,610 Additions Disposal
Parent company shares held by subsidiaries reclassified from long-term investment to treasury stock

~58~

C. The market value of treasury stocks was $84.7 and $75.7 (in dollars) per share at June 30, 2021 and 2020, respectively.
D. The above treasury stocks of the parent company were purchased by subsidiaries.
(18) 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 Group 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 Effect from net stockholding of associates recognised under the equity method Changes in ownership interests in subsidiaries Expired cash dividends reclassified to capital surplus At June 30, 2021		For the six-month period ended June 30, 2021
	Share premium 2,710,554 $ - - - 2,710,554 $	Conversion premium of corporate bonds 5,514,032 $ - - - 5,514,032 $

~59~

For the six-month period ended June 30, 2020

At January 1, 2020 Effect from net stockholding of associates recognised under the equity method Changes in ownership interests in subsidiaries Expired cash dividends reclassified to capital surplus At June 30, 2020	Share premium 2,710,554 $ - - - 2,710,554 $	Conversion premium of corporate bonds 5,514,032 $ - - - 5,514,032 $	Treasury share Effect from net stockholding of associates recognised Difference between stock price and book value for disposal or acquisition of transactions usingequitymethod subsidiaries Others 316,688 $ 372,847 $ 163 $ 224,585 $ - 4,549 - - - 12) ( - - - - - 125) ( 316,688 $ 377,384 $ 163 $ 224,460 $

(19) 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:
(a) Reserve for a special purpose;
(b) 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;
(c) 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
(d) Other special reserves as stipulated by other laws.

~60~

B. The Group 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 bonus and special reserves shall be distributed to stockholders. The Group would prefer cash dividend. If the Group 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 Group’s paid-in capital.
D. In accordance with the regulations, the Group 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:

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

Information about the appropriation of employees’ bonus and directors’ and supervisors’ remuneration by the Group 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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(20) Other equity items

Other equity items
		Hedging		Unrealised gain		Currency
		reserve		(loss)		translation		Total
At January 1, 2021	$	32,123	$	98,095,277	($	5,272,606)	$	92,854,794
Revaluation:
–Group		-		11,399,823		-		11,399,823
–Associates		-		121,821		-		121,821
Revaluation transferred
to retained earnings:
–Group		-	(	16,524)		-	(	16,524)
–Associates		-	(	2,446)		-	(	2,446)
Cash flow hedges:
–Associates	(	3,709)		-		-	(	3,709)
Currency translation
differences:
–Group		-		-	(	1,057,306)	(	1,057,306)
–Tax of Group		-		-		213,260		213,260
–Associates		-		-	(	415,078)	(	415,078)
At June 30, 2021	$	28,414	$	109,597,951	($	6,531,730)	$	103,094,635
		Hedging		Unrealised gain		Currency
		reserve		(loss)		translation		Total
At January 1, 2020	$	659	$	107,120,877	($	4,560,606)	$	102,560,930
Revaluation:
–Group		-	(	26,887,211)		-	(	26,887,211)
–Associates		-	(	5,733,708)		-	(	5,733,708)
Cash flow hedges:
–Associates		37,213		-		-		37,213
Currency translation
differences:
–Group		-		-	(	2,082,427)	(	2,082,427)
–Tax of Group		-		-		405,375		405,375
–Associates		-		-	(	298,494)	(	298,494)
At June 30, 2020	$	37,872	$	74,499,958	($	6,536,152)	$	68,001,678

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(21) Operating revenue

Sales revenue Service revenue Other operating revenue Sales revenue Service revenue Other operating revenue Less: Income from discontinued operations	2021 2020 95,635,938 $ 55,788,531 $ 129,853 134,161 109,866 65,154 95,875,657 $ 55,987,846 $ 2021 2020 179,538,950 $ 120,026,228 $ 258,984 273,914 231,974 149,312 180,029,908 120,449,454 - 17,555) ( 180,029,908 $ 120,431,899 $ Forthe three-monthperiods ended June 30, For the six-month periods ended June 30,

The Group derives revenue from the transfer of goods and services over time and at a point in time. (22) Interest income

Interest income from bank deposits Interest from current account with others Other interest income Interest income from bank deposits Interest from current account with others Other interest income Less: Interest income from discontinued operations	2021 2020 73,929 $ 56,106 $ 13,228 29,130 1,687 1,782 88,844 $ 87,018 $ 2021 2020 138,333 $ 121,957 $ 25,566 61,637 3,028 4,472 166,927 188,066 - 72) ( 166,927 $ 187,994 $ For the three-monthperiods endedJune30, Forthe six-monthperiods ended June 30,

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(23) Other income

Rent income Dividend income Other income Rent income Dividend income Other income	Forthe three-monthperiods ended June 30,	Forthe three-monthperiods ended June 30,
	2021 34,026 $ 2,880 245,165 282,071 $	2020
		35,068 $ 1,078,609 300,731
		1,414,408 $

	Forthe six-monthperiods ended June 30,
	2021 67,575 $ 12,995 504,937	2020
		69,595 $ 1,078,609 465,408
	585,507 $	1,613,612 $

	Forthe six-monthperiods	Forthe six-monthperiods	ended June 30,
	2021		2020
$	67,575	$	69,595
	12,995		1,078,609
	504,937		465,408
$	585,507	$	1,613,612

(24) Other gains and losses

(Loss) gain on disposal of property, plant and equipment Net currency exchange loss Net loss on financial assets and liabilities at fair value through profit or loss Other losses

Less: Other losses from discontinued operations

(Loss) gain on disposal of property, plant and equipment Gain on disposal of investments Net currency exchange loss Net loss on financial assets and liabilities at fair value through profit or loss Other losses

Less: Other losses from discontinued operations

Forthe three-monthperiods ended June 30,	Forthe three-monthperiods ended June 30,	Forthe three-monthperiods ended June 30,	Forthe three-monthperiods ended June 30,	Forthe three-monthperiods ended June 30,
	2021			2020
($	2,616)		$	26,151
(	364,909)	(		45,242)
(	86,235)	(		63,003)
(	77,652)	(		57,217)
(	531,412)	(		139,311)
	-			-
($	531,412)	($		139,311)
	Forthe six-monthperiods ended June 30,
	2021			2020
($	8,360)		$	6,070
	-			165
(	520,711)	(		155,534)
(	76,884)	(		20,523)
(	124,215)	(		124,125)
(	730,170)	(		293,947)
	-			157
($	730,170)	($		293,790)

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(25) Finance costs

For the three-month periods ended June 30,

Interest expense: Bank loans Corporate bonds Current account with others Discount Other interest expenses

Less: Capitalisation of qualifying assets

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2021 2020
$ 106,997 $ 205,574
150,490 133,129
6,335 2,054
14,537 26,393
6,897 35,963
285,256 403,113
( 28,191) ( 54,383)
$ 257,065 $ 348,730
----- End of picture text -----

Interest expense: Bank loans Corporate bonds Current account with others Discount Other interest expenses

Less: Capitalisation of qualifying assets

	Forthe six-monthperiods	Forthe six-monthperiods	ended June 30,
	2021		2020
$	204,688	$	419,056
	292,114		267,286
	14,488		5,099
	22,994		64,830
	15,252		81,929
	549,536		838,200
(	49,948)	(	78,391)
$	499,588	$	759,809

(26) Expenses by nature

Expenses by nature
Depreciation charges on property, plant and equipment and right-of-use assets Employee benefit expense Amortisation	Forthe three-monthperiods ended June 30,
	2021 3,421,428 $ 3,357,913 956,573 7,735,914 $	2020
		3,368,975 $ 3,340,140 1,636,950
		8,346,065 $

~65~

		Forthe six-monthperiods	Forthe six-monthperiods	ended June 30,
		2021		2020
Depreciation charges on property, plant and
equipment and right-of-use assets	$	6,726,199	$	6,757,797
Employee benefit expense		6,807,155		6,872,981
Amortisation		1,916,371		1,749,588
		15,449,725		15,380,366
Less: Employee benefit expenses from
discontinued operations		-	(	535)
Less: Depreciation charges on property, plant
and equipment and right-of-use assets
from discontinued operations		-	(	231)
	$	15,449,725	$	15,379,600

(27) Employee benefit expense

Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses Wages and salaries Labor and health insurance fees Pension costs Other personnel expenses Less: Employee benefit expenses from discontinued operations	2021 2020 2,828,401 $ 2,852,435 $ 247,426 222,687 126,199 123,569 155,887 141,449 3,357,913 $ 3,340,140 $ 2021 2020 5,761,986 $ 5,885,302 $ 491,324 455,874 248,833 249,663 305,012 282,142 6,807,155 6,872,981 - 535) ( 6,807,155 $ 6,872,446 $ For the three-monthperiods endedJune30, For the six-month periods ended June 30,

A. In accordance with the Articles of Incorporation of the Company, a ratio of distributable profit before income tax of the current year, 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 three-month and six-month periods ended June 30, 2021, employees’ remuneration (bonuses) was accrued at $13,889 and $27,967, respectively. The aforementioned amount was recognised in salary expenses. For the six-month period ended June 30, 2020, employees’ remuneration (bonuses) was not accrued due to the loss before tax.

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For the six-month period ended June 30, 2021, the employees’ compensation was estimated and accrued based on approximately 0.1% of the distributable profit.

Information about the appropriations of employees’ bonus 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.

(28) Income tax

A. Income tax expense

(a) Components of income tax expense:

For the three-month periods ended June 30,

		2021		2020
Current tax:
Current tax on profits for the period	$	2,573,695	$	100,405
Tax on undistributed surplus earnings		169,184		218,707
Adjustments in respect of prior years	(	4,677)	(	272,747)
Total current tax		2,738,202		46,365
Deferred tax:
Origination and reversal of temporary
differences	(	52,802)		128,202
Effect of exchange rate		618		240
Total deferred tax	(	52,184)		128,442
Income tax expense	$	2,686,018	$	174,807

		For the six-month periods		ended June 30,
		2021		2020
Current tax:
Current tax on profits for the period	$	5,200,193	$	306,757
Tax on undistributed surplus earnings		169,184		218,707
Adjustments in respect of prior years	(	41,237)	(	267,189)
Total current tax		5,328,140		258,275
Deferred tax:
Origination and reversal of temporary
differences		44,316		159,346
Effect of exchange rate		552		919
Total deferred tax		44,868		160,265
Income tax expense	$	5,373,008	$	418,540

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

Currency translation differences Currency translation differences	Forthe three-monthperiods ended June 30,	Forthe three-monthperiods ended June 30,
	2021 2020 134,289 $ 292,411 $ Forthe six-monthperiods ended June 30,	2020
		292,411 $
	2021 213,260 $	2020
		405,375 $

B. The Company’s income tax returns through 2018 have been assessed and approved by the Tax Authority.

(29) 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.

Before tax After tax (shares in thousands) Before tax After tax 16,503,362 $ 13,817,344 $ 2.83 $ 2.36 $ 2,627,483 1,412,979 0.45 0.24 13,875,879 12,404,365 2.38 2.12 - - - - 13,875,879 $ 12,404,365 $ 5,849,017 2.38 $ 2.12 $ For the three-monthperiod endedJune30,2021 Amount (in dollars) Earnings per share Weighted average number of ordinary shares outstanding	Before tax After tax (shares in thousands) Before tax After tax 16,503,362 $ 13,817,344 $ 2.83 $ 2.36 $ 2,627,483 1,412,979 0.45 0.24 13,875,879 12,404,365 2.38 2.12 - - - - 13,875,879 $ 12,404,365 $ 5,849,017 2.38 $ 2.12 $ For the three-monthperiod endedJune30,2021 Amount (in dollars) Earnings per share Weighted average number of ordinary shares outstanding	Before tax After tax (shares in thousands) Before tax After tax 16,503,362 $ 13,817,344 $ 2.83 $ 2.36 $ 2,627,483 1,412,979 0.45 0.24 13,875,879 12,404,365 2.38 2.12 - - - - 13,875,879 $ 12,404,365 $ 5,849,017 2.38 $ 2.12 $ For the three-monthperiod endedJune30,2021 Amount (in dollars) Earnings per share Weighted average number of ordinary shares outstanding
Before tax 16,503,362 $ 2,627,483 13,875,879 - 13,875,879 $	Before tax 2.83 $ 0.45 2.38 - 2.38 $	After tax
		2.36 $ 0.24
		2.12
		-
		2.12 $

~68~

For the three-month period ended June 30, 2020

	For the three-monthperiod endedJune30,2020	ne30,2020	ne30,2020
Consolidated net income Net income of non- controlling interest Profit attributable to ordinary shareholders of the parent Profit attributable to discontinued operations of the parent Profit attributable to continuing operations of the parent Consolidated net income Net income of non- controlling interest Profit attributable to ordinary shareholders of the parent Profit attributable to discontinued operations of the parent Profit attributable to continuing operations of the parent Basic earnings per share Basic earnings per share	Before tax After tax (shares in thousands) Before tax After tax 1,986,781 $ 1,811,974 $ 0.34 $ 0.31 $ 844,160 669,353 0.14 0.11 1,142,621 1,142,621 0.20 0.20 - - - - 1,142,621 $ 1,142,621 $ 5,849,017 0.20 $ 0.20 $ Weighted average number of ordinary shares outstanding Earnings per share Amount (in dollars) For the six-monthperiod endedJune30,2021	Earnings per share (in dollars)
	Before tax 1,986,781 $ 844,160 1,142,621 - 1,142,621 $		After tax
			0.31 $ 0.11
			0.20
			-
			0.20 $

	Before tax After tax (shares in thousands) 33,258,429 $ 27,885,421 $ 5,318,955 2,608,122 27,939,474 25,277,299 - - 27,939,474 $ 25,277,299 $ 5,849,017 Weighted average number of ordinary shares outstanding Amount	Earnings per share (in dollars)
	Before tax 33,258,429 $ 5,318,955 27,939,474 - 27,939,474 $	Before tax 5.69 $ 0.91 4.78 - 4.78 $	After tax
			4.77 $ 0.45
			4.32
			-
			4.32 $

~69~

==> picture [465 x 252] intentionally omitted <==

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

For the six-month period ended June 30, 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
Consolidated net income ($ 2,112,258) ($ 2,530,798) ($ 0.36) ($ 0.43)
Net income of non-
controlling interest 1,354,843 936,303 0.23 0.16
Profit attributable to
ordinary shareholders
of the parent ( 3,467,101) ( 3,467,101) ( 0.59) ( 0.59)
Profit attributable to
discontinued operations
of the parent ( 484) ( 484) ( 0.00) ( 0.00)
Profit attributable to
continuing operations
of the parent ($ 3,466,617) ($ 3,466,617) 5,849,017 ($ 0.59) ($ 0.59)
----- End of picture text -----

B. Employees’ bonus 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:

For the three-monthperiod endedJune30,2021	For the three-monthperiod endedJune30,2021	For the three-monthperiod endedJune30,2021
Before tax After tax (shares in thousands) 16,503,362 $ 13,817,344 $ 2,627,483 1,412,979 13,875,879 12,404,365 - - 13,875,879 $ 12,404,365 $ 5,861,186 Weighted average number of ordinary shares outstanding Amount	Earnings per share (in dollars)
Before tax 16,503,362 $ 2,627,483 13,875,879 - 13,875,879 $	Before tax 2.81 $ 0.44 2.37 - 2.37 $	After tax
		2.36 $ 0.25
		2.11
		-
		2.11 $

~70~

For the three-month period ended June 30, 2020

	For the three-monthperiod endedJune30,2020	ne30,2020	ne30,2020
Consolidated net income Net income of non- controlling interest Profit attributable to ordinary shareholders of the parent Profit attributable to discontinued operations of the parent Profit attributable to continuing operations of the parent Consolidated net income Net income of non- controlling interest Profit attributable to ordinary shareholders of the parent Profit attributable to discontinued operations of the parent Profit attributable to continuing operations of the parent Basic earnings per share Basic earnings per share	Before tax After tax (shares in thousands) Before tax After tax 1,986,781 $ 1,811,974 $ 0.34 $ 0.31 $ 844,160 669,353 0.14 0.11 1,142,621 1,142,621 0.20 0.20 - - - - 1,142,621 $ 1,142,621 $ 5,861,186 0.20 $ 0.20 $ Weighted average number of ordinary shares outstanding Earnings per share Amount (in dollars) For the six-monthperiod endedJune30,2021	Earnings per share (in dollars)
	Before tax 1,986,781 $ 844,160 1,142,621 - 1,142,621 $		After tax
			0.31 $ 0.11
			0.20
			-
			0.20 $

	Before tax After tax (shares in thousands) 33,258,429 $ 27,885,421 $ 5,318,955 2,608,122 27,939,474 25,277,299 - - 27,939,474 $ 25,277,299 $ 5,861,186 Weighted average number of ordinary shares outstanding Amount	Earnings per share (in dollars)
	Before tax 33,258,429 $ 5,318,955 27,939,474 - 27,939,474 $	Before tax 5.67 $ 0.90 4.77 - 4.77 $	After tax
			4.76 $ 0.45
			4.31
			-
			4.31 $

~71~

==> picture [465 x 252] intentionally omitted <==

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

For the six-month period ended June 30, 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
Consolidated net income ($ 2,112,258) ($ 2,530,798) ($ 0.36) ($ 0.43)
Net income of non-
controlling interest 1,354,843 936,303 0.23 0.16
Profit attributable to
ordinary shareholders
of the parent ( 3,467,101) ( 3,467,101) ( 0.59) ( 0.59)
Profit attributable to
discontinued operations
of the parent ( 484) ( 484) ( 0.00) ( 0.00)
Profit attributable to
continuing operations
of the parent ($ 3,466,617) ($ 3,466,617) 5,861,186 ($ 0.59) ($ 0.59)
----- End of picture text -----

(30) Business combinations

A. On September 24, 2020, the Group acquired an additional 21% equity interest in Chia-Nan Enterprise Corp. for a total cash consideration of $145,527. The Group’s comprehensive shareholding ratio increased from 30% to 51%.
B. The following table summarises the consideration paid for Chia-Nan Enterprise Corp. and the fair values of the assets acquired and liabilities assumed at the acquisition date, as well as the fair value of the non-controlling interest at the acquisition date:

value of the non-controlling interest at the acquisition date:
			For the year ended
			December31,2020
Purchase consideration
Cash paid		$	145,527
Fair value of equity interest in Chia-Nan Enterprise Corp. held
before the business combination			207,448
Fair value of the non-controlling interest			338,120
			691,095
Fair value of the identifiable assets acquired and liabilities assumed
Cash			79,367
Accounts receivable			10,616
Property, plant and equipment			640,204
Accounts payable	(		3,782)
Other payables	(		22,564)
Others	(		12,746)
Total identifiable net assets			691,095
		$	-

~72~

C. The Group recognised a gain of $447 as a result of measuring at fair value its 30% equity interest in Chia-Nan Enterprise Corp. held before the business combination.

(31) Supplemental cash flow information

A. Investing activities with partial cash payments

		For the six-monthperiods	For the six-monthperiods	endedJune30,
		2021		2020
Purchase of fixed assets	$	7,249,995	$	8,892,638
Add: Opening balance of payable on equipment		1,656,593		1,439,071
Less: Ending balance of payable on equipment	(	756,471)	(	1,743,722)
Cash paid during the period	$	8,150,117	$	8,587,987

B. Financing activities with partial cash payments

		For the six-month periods	For the six-month periods	ended June 30,
		2021		2020
Cash dividends distributed	$	14,652,966	$	22,272,508
Add: Opening balance of cash dividends payable		76,913		71,884
Less: Ending balance of cash dividends payable	(	14,728,880)	(	22,343,556)
Cash dividends paid	$	999	$	836

C. On March 16, 2020, the Board of Directors of Formosa Taffeta Co., Ltd. resolved to dispose all its equity interest in Schoeller F.T.C. (Hong Kong) Co., Ltd. The trading consideration information is listed below:

information is listed below:
			For the six-month
		period ended June 30,
			2020
Disposal proceeds		$	6,028
Less: Book value of cash and cash equivalents	(		29,584)
Cash (paid) received	($		23,556)

~73~

(32) Changes in liabilities from financing activities

						Bonds	Long-term	Long-term
						payable	borrowing
			Short-term		(including			(including		Liabilities
		Short-term		notes and		current		current	from financial
		borrowings	bills payable			portion)		portion)	activities-gross
At January 1, 2021		19,055,620 $	$	16,096,733	$	42,100,000	$	16,298,088	$	93,550,441
Changes in cash flow
from financing
activities	(	2,674,371)	(	4,101,840)		10,000,000	(	1,130,806)		2,092,983
Impact of changes in
foreign exchange rate		-		-		-	(	195,837)	(	195,837)
At June 30, 2021		16,381,249 $	$	11,994,893	$	52,100,000	$	14,971,445	$	95,447,587
						Bonds	Long-term
						payable	borrowing
			Short-term		(including			(including		Liabilities
		Short-term		notes and		current		current	from financial
		borrowings	bills payable			portion)		portion)	activities-gross
At January 1, 2020		32,369,623 $	$	14,396,370	$	34,850,000	$	18,051,565	$	99,667,558
Changes in cash flow
from financing
activities		6,753,170		4,389,848	(	1,400,000)	(	2,479,123)		7,263,895
Impact of changes in
foreign exchange rate		-		-		-	(	155,608)	(	155,608)
At June 30, 2020		39,122,793 $	$	18,786,218	$	33,450,000	$	15,416,834	$	106,775,845

~74~

7. Related Party Transactions

(1) Names of related parties and relationship

lated Party Transactions
Names of related parties and relationship

Names of related parties

Relationship withthe Group

Formosa Petrochemical Corp.
Formosa Heavy Industries Corp.
Formosa Heavy Industries (Ningbo) Corp.
Formosa Plastics Transport Corp.
Formosa Synthetic Rubber Corp. (Has completed liquidation on
December 28, 2020)
Formosa Synthetic Rubber (Ningbo) Corp.
Mai Liao Power Corp.
Formosa Environmental Technology Corp.
Hwa Ya Science Park Management Consulting Corp.
Formosa Resourses Corp.
Formosa Construction Corp.
Formosa Fairway Corporation
Kuang Yueh Co., Ltd.
Formosa Group (Cayman) Corp.
FG Inc.
Formosa Advanced Technologies Co., Ltd.
Schoeller Textil AG
Nan Ya Optical Corp.
Formosa Plastics Corp.
Nan Ya Plastics Corp.
Nan Ya Plastics (Hui Zhou) Corp.
Nan Ya Plastics (Nan Tong) Corp.
Nan Ya Plastics Corp., U.S.A.
Nan Ya Plastics (Ningbo) Corp.
Nan Ya Technology Corp.
Nan Ya PCB Corp.
Nan Ya Electronic Materials Co., Ltd.
Formosa Automobile Sales Corporation
Formosa Petrochemical Transportation Corporation
Formosa Lithium Iron Oxide Corp.
Chang Gung University
Chang Gung Memorial Hospital
Chang Gung Biotechnology Co., Ltd.
Yue Chi Development Corp.
PFG Fiber Glass Corp.
Formosa Plastics Marine Corp.
Formosa Plastics Marine Co., Ltd.
Mai Liao Harbor Administration Corp.
Formosa Network Technology Corp.
Formosa Plastics Building Parking Lot
FPG Travel Service Co., Ltd.

Associate
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Other related party
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~75~

Names of related parties

Relationship withthe Group

Formosa Daikin Advanced Chemicals Co., Ltd.
Formosa Sumco Technology Corporation
Formosa Asahi Spandex Co., Ltd.
Formosa Plastics Logistics Corp.
Formosa Plastics Transport (Ningbo) Co., Ltd.
Formosa Electronic (Ningbo) 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) Ltd.
Formosa Ha Tinh Steel Corp. - TW
Formosa Ha Tinh Steel Corp.
BP Chemicals (Malaysia) SDN Corp. (Note)
Idemitsu Kosan Co., Ltd.
Idemitsu Chemicals (Hong Kong) Co., Ltd.
Idemitsu Chemicals U.S.A. Corp.
Yugen Co., Ltd.
Yumaowu Enterprise Co., Ltd.
Yu Yuang Textile Co., Ltd.
Yu Maowu Complex Co., Ltd.
NKFG Corporation
Kuang Yueh (Vietnam) Co., Ltd.
Hua Ya Power Corp.
Asia Pacific Technology Corp.
Ya Tai Development Co., Ltd.
Kong You Industrial Co., Ltd.
Hong Jing Metal Corp.
Formosa Industries (Ningbo) Co., Ltd.
Nan Ya Plastics Industry (Anshan) Co., Ltd.
Nan Ya Electronic Materials (Kunshan) Co., Ltd.
Nan Ya Plastics Film (Nantong) Co., Ltd.
Nan Ya Plastics Film (Hui Zhou) Co., Ltd
Nan Ya Chemical Fiber (Kunshan) Co., Ltd.
Nan Ya Draw-Textured Yarn (Kunshan) Co., Ltd.
Nan Ya Plastics (Xiamen) Co., Ltd.
Formosa Heavy Industries (Guangzhou) Co., Ltd.
Asia Pactfic Investment Co.
Nan Ya Printed Circuit Board Corp.
Formosa Automobile Corp.
Taisuwang Commerce and Trade Co., Ltd.
Huaya Steel Co., Ltd.
Fuxin Special Steel Co., Ltd.

Other related party
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~76~

Note: On January 1, 2021, the original shareholder who held 50% of the shares of the subsidiary of the Group has disposed its holdings to INEOS Quattro Holding Ltd. Therefore, BP Chemicals (Malaysia) SDN Corp. is not a related party of the Group since January 1, 2021.

(2) Significant related party transactions
A. Sales of goods:

Sales of goods: － Associates `－` Other related parties Sales of goods: － Associates `－` Other related parties	Forthe three-monthperiods ended June 30,	Forthe three-monthperiods ended June 30,
	2021 2020 8,152,597 $ 2,397,984 $ 12,824,230 8,129,048 20,976,827 $ 10,527,032 $ Forthe six-monthperiods ended June 30,	2020
		2,397,984 $ 8,129,048
		10,527,032 $
	2021 16,012,500 $ 23,111,938 39,124,438 $	2020
		7,969,128 $ 17,374,778
		25,343,906 $

The Group sells goods to related parties. Except for terms to certain related parties which are longer, prices are the same with third parties.

B. Purchases of goods:

longer, prices are the same with third parties. Purchases of goods:
Purchases of goods: － Associates Formosa Petrochemical Corp. Others `－` Other related parties Purchases of goods: － Associates Formosa Petrochemical Corp. Others `－` Other related parties	For the three-monthperiods endedJune30,
	2021 2020 37,380,880 $ 17,123,928 $ 2,514 2,000 7,949,266 3,064,296 45,332,660 $ 20,190,224 $ Forthe six-monthperiods ended June 30,	2020
		17,123,928 $ 2,000 3,064,296
		20,190,224 $
	2021 73,996,730 $ 4,122 14,351,567 88,352,419 $	2020
		46,892,324 $ 2,375 7,261,243
		54,155,942 $

~77~

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.

C. Receivables from related parties:

terms for related parties are the same with non-related parties. Receivables from related parties:
`.` June 30, 2021 December31,2020 Receivables from related parties: － Associates 2,688,864 $ 2,010,960 $ `－` Other related parties 4,676,381 3,947,994 7,365,245 $ 5,958,954 $	June30,2020
	1,010,936 $ 4,254,021 5,264,957 $

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 sale; receivables for payments on behalf of others for construction design services are due 270 days from the services rendered. The receivables do not bear interest and no collaterals were pledged. No provision was accrued for receivables from related party.

D. Payables to related parties:

Payables to related parties:
. Payables to related parties: － Associates Formosa Petrochemical Corp. `－` Other related parties	June30,2021 11,689,097 $ 2,860,180 14,549,277 $	December31,2020 9,806,133 $ 2,402,434 12,208,567 $	June30,2020
			6,488,362 $ 1,638,639
			8,127,001 $

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:

Expansion and repair works of factory sites － Associates －Other related parties Expansion and repair works of factory sites － Associates －Other related parties	Forthe three-monthperiods ended June 30,	Forthe three-monthperiods ended June 30,
	2021 2020 43,673 $ 112,970 $ 51,142 159,785 94,815 $ 272,755 $ Forthe six-monthperiods ended June 30,	2020
		112,970 $ 159,785
		272,755 $
	2021 179,636 $ 59,737 239,373 $	2020
		163,596 $ 262,519
		426,115 $

~78~

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

`.` June30,2021 Payables to related parties: － Associates 448 $ `－` Other related parties 60,374 60,822 $	December31,2020 95 $ 41,945 42,040 $	June30,2020 2,375 $ 160,351 162,726 $

The Group 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:

i. Ending balance of accounts receivable - related parties

. June 30, 2021 December 31, 2020 June 30, 2020 － Associates Formosa Heavy - - Industries Corp. $ $ $ 8,000,000 － Other related parties Formosa Plastics Marine Co., Ltd. 3,609,966 4,195,598 4,642,870 $ 3,609,966 $ 4,195,598 $ 12,642,870

ii. Interest income

Interest income
－ Associates Formosa Heavy Industries Corp. `－` Other related parties Formosa Plastics Marine Co., Ltd. － Associates Formosa Heavy Industries Corp. `－` Other related parties Formosa Plastics Marine Co., Ltd.	For the three-month periods ended June 30,
	2021 2020 1,698 $ 13,650 $ 11,513 15,490 13,211 $ 29,140 $ Forthe six-monthperiods ended June 30,	2020
		13,650 $ 15,490
		29,140 $
	2021 1,698 $ 23,837 25,535 $	2020
		26,827 $ 34,810
		61,637 $

The loan terms to related parties are in accordance with the contract’s repayment schedule after the loan is made; interest was collected at 1.23% and 1.23%~1.42% per annum for the six-month periods ended June 30, 2021 and 2020, respectively.

~79~

(b) Loans from related parties:

i. Ending balance of accounts payable - related parties

		June 30, 2021	December	31,2020		June 30,2020
－ Associates	$	514,552	$	531,808	$	-
`－` Other related parties		13,805		-		-
	$	528,357	$	531,808	$	-

ii. Interest expense

Interest expense
－Associates `－` Other related parties －Associates `－` Other related parties	2021 2020 4,094 $ - $ 5 - 4,099 $ - $ Forthe three-monthperiods ended June 30, For the six-monthperiods endedJune30,
	2021 8,292 $ 5 8,297 $	2020
		- $ -
		- $

The loan terms from associates are in accordance with the contract’s repayment schedule after the loan is made; interest is paid at a rate of 3.08% per annum for the six-month period ended June 30, 2021.

G. Receivables for payment on behalf of others

	June 30, 2021	December	31,	2020	June 30, 2020
`－` Other related parties	27) ($	($		27)	27) ($

The amount for equipment for resale that the Group paid on behalf of associates is recorded as other current assets.

H. Operating expenses

other current assets. Operating expenses
Transportation charges `－` Other related parties Formosa Plastics Marine Corp. Formosa Plastics Transport (Ningbo) Corp. Others	Forthe three-monthperiods ended June 30,
	2021 154,373 $ 242,149 112,227 508,749 $	2020 393,528 $ 235,557 41,239 670,324 $

~80~

Transportation charges `－` Other related parties Formosa Plastics Marine Corp. Formosa Plastics Transport (Ningbo) Corp. Others	2021 2020 340,986 $ 769,419 $ 467,570 406,906 205,048 97,886 1,013,604 $ 1,274,211 $ Forthe six-monthperiods ended June 30,

I. Rental revenue

Rental revenue
－ Associates Formosa Petrochemical Corp. Others `－` Other related parties Nan Ya Plastics Corp. Formosa Plastics Building Parking Lot Formosa Network Technology Corp. Others － Associates Formosa Petrochemical Corp. Others `－` Other related parties Nan Ya Plastics Corp. Formosa Plastics Building Parking Lot Formosa Network Technology Corp. Others	Forthe three-monthperiods ended June 30,
	2021 2020 5,304 $ 5,304 $ 3,099 2,975 8,403 8,279 6,684 6,314 4,016 3,783 3,850 3,850 6,658 7,434 21,208 21,381 29,611 $ 29,660 $ Forthe six-monthperiods ended June 30,	2020
		5,304 $ 2,975
		8,279
		6,314 3,783 3,850 7,434
		21,381
		29,660 $
	2021 10,608 $ 6,199 16,807 13,369 8,032 7,700 13,315 42,416 59,223 $	2020
		10,608 $ 5,949
		16,557
		12,627 7,565 7,700 15,014
		42,906
		59,463 $

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

~81~

J. Property transactions:

(a) Acquisition of property, plant and equipment

erty transactions: Acquisition of property, plant and equipment
		Forthe three-month	periods ended June 30,
		2021		2020
Purchase of property, plant and equipment
－ Associates	$	54,350	$	67,533
		For the six-month periods ended June 30,
		2021		2020
Purchase of property, plant and equipment
－ Associates	$	179,637	$	87,582
`－` Other related parties
Nan Ya Draw-Textured Yarn (Kunshan)
Co., Ltd.		-		1,233,875
	$	179,637	$	1,321,457

(b) Acquisition of financial assets

For the three-month period ended June 30, 2021: None.

Accounts	No. ofshares	For the three-month period ended June 30,2020
		Consideration
Investments accounted for using equity method Accounts	- No. ofshares	511,696 $
		For the six-month period ended June 30,2021
		Consideration
Investments accounted for using equity method	88,453,125	887,813 $

~82~

NKFG Corporation Schoeller Textil AG FG Inc.	Accounts No. ofshares Non-current financial assets at fair value through other comprehensive income 5,540,000 Investments accounted for using equity method 21,874 Investments accounted for using equity method -	For the six-month period ended June 30,2020 Objects Consideration NKFG Corporation 55,400 $ Schoeller Textil AG 1,285,507 FG Inc. 811,408 2,152,315 $

K. Details of affiliates endorsed/guaranteed for the Group’s borrowings are provided in Note 6(15).
L. Details of affiliates endorsed/guaranteed and commitment letter for the Associate are provided in Notes 9(3) and (4).

(3) Key management compensation

K. Details of affiliates endorsed/guaranteed L. Details of affiliates endorsed/guaranteed Notes 9(3) and (4). Key management compensation	for the Group’s borrowings are provided in Note 6(15). and commitment letter for the Associate are provided in	for the Group’s borrowings are provided in Note 6(15). and commitment letter for the Associate are provided in
Salaries Post-employment benefits Salaries Post-employment benefits	Forthe three-monthperiods ended June 30,
	2021 2020 76,846 $ 85,178 $ 375 376 77,221 $ 85,554 $ For the six-monthperiods endedJune30,	2020
		85,178 $ 376
		85,554 $
	2021 99,821 $ 700 100,521 $	2020
		113,491 $ 757
		114,248 $

~83~

8. Pledged Assets

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

==> picture [500 x 158] intentionally omitted <==

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Book value
Pledged assets June 30, 2021 December 31, 2020 June 30, 2020 Purpose
Property, plant and $ 5,885,703 $ 5,886,513 $ 5,887,227 Collateral for bank loans
equipment
Inventory 17,610 17,610 17,610 Limited transfer for land
tax reassessment and
collateral
Non-current financial
assets at amortised Guarantee deposits for
cost - Time deposits 1,500 1,500 - natural gas
$ 5,904,813 $ 5,905,623 $ 5,904,837
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9. Significant Contingent Liabilities and Unrecognised Contract Commitments

The details of commitments and contingencies as of June 30, 2021 were as follows:

(1) Capital expenditures of property, plant and equipment that were contracted but not yet paid amounted to $7,205,833 thousand, RMB 1,519,724 thousand and VND 515,774,307 thousand.
(2) The outstanding letters of credit for major raw materials and equipment purchases amounted to USD 15,335 thousand, JPY 751,378 thousand and EUR 1,535 thousand.
(3) The provision of endorsements and guarantees to others are as follows:

Formosa Industries Corp. Formosa Resources Corp. Formosa Group (Cayman) Corp. Formosa Ha Tinh (Cayman) Corp. Formosa Taffeta (Zhong Shan) Co., Ltd. Formosa Taffeta (Vietnam) Co., Ltd. Formosa Taffeta (Changshu) Co., Ltd. Formosa Taffeta (Dong Nai) Co., Ltd.	June 30,2021 - $ 2,996,025 6,967,500 18,436,588 13,930 456,224 316,178 2,615,480 31,801,925 $	December 31,2020 - $ 3,064,610 7,127,000 25,344,122 14,240 323,530 321,972 2,604,882 38,800,356 $	June 30,2020 444,900 $ 3,188,450 7,415,000 26,843,789 29,630 454,518 370,041 2,856,963
			41,603,291 $

(4) The promissory notes issued for others are as follows:
A. The Group’s indirect investee, Formosa Ha Tinh (Cayman) Limited Co., was provided with a bank loan facility of USD 2.22 billion to meet the operation needs. To secure the rights of its shareholders, the Company is required to issue a promissory note to ensure the borrower has fulfilled its obligation for repayment.

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B. The Group’s consolidated entity, Formosa Chemicals Industries (Ningbo) Limited Co., entered into a syndicated loan contract with the syndicated banking group lead by Mega International Commercial Bank, arranging the credit facilities of USD 155 million or equal value of RMB to meet the capital needs of building the plant. The Company is required to issue a promissory note and is obliged to facilitate the repayment of the borrower whenever necessary. Abovementioned syndicated loan has been repaid by Formosa Chemicals Industries (Ningbo) Limited Co. in October 2020.
(5) Contingencies - litigation
A. Taiwan Cooperative Bank Co., Ltd. (“TCB”) filed a civil lawsuit against the Group’s subsidiary, Formosa Taffeta Co., Ltd. (“Formosa Taffeta”) with the Taipei District Court in September 2019. TCB claimed that the former employees of Formosa Taffeta colluded with New Site Industries Inc. (“New Site”) and New Brite Industries Inc. (“New Brite”) to make false statements. TCB was misled with the fact that New Site and New Brite have accounts receivable due from Formosa Taffeta, causing damage to TCB. Therefore, TCB claimed that Formosa Taffeta should be liable with the obligation of indemnity. However, this case arose purely as a result of the personal behavior of the former employee. As the case is still under trial proceedings, the ultimate outcome and amount of the lawsuit cannot presently be determined. However, Formosa Taffeta has engaged a lawyer to submit a strong defense to protect its rights and interests.
B. DBS (Taiwan) Commercial Bank Co., Ltd. (“DBS”) filed a civil lawsuit against the Group’s subsidiaries, Formosa Taffeta Co., Ltd. (“Formosa Taffeta”) and Formosa Taffeta Dong Nai Co., Ltd. (“Formosa Taffeta Dong Nai”) with the Taipei District Court in September 2019. The former employees of Formosa Taffeta and Formosa Taffeta Dong Nai colluded with New Site Industries Inc. (“New Site”) to make false statements. DBS was misled with the fact that New Site has accounts receivable due from Formosa Taffeta and Formosa Taffeta Dong Nai, causing damage to DBS. Therefore, DBS claimed that Formosa Taffeta and Formosa Taffeta Dong Nai should be jointly and severally liable with the obligation of indemnity. However, this case arose purely as a result of the personal behavior of the former employee. As the case is still under trial proceedings, the ultimate outcome and amount of the lawsuit cannot presently be determined. However, Formosa Taffeta and Formosa Taffeta Dong Nai have engaged lawyers to submit a strong defense to protect their rights and interests.
C. O-Bank Co., Ltd. (“O-Bank”) filed a civil lawsuit against the Group’s subsidiaries, Formosa Taffeta Co., Ltd. (“Formosa Taffeta”) and Formosa Taffeta Dong Nai Co., Ltd. (“Formosa Taffeta Dong Nai”) with the Taipei District Court in February 2020. The former employees of Formosa Taffeta and Formosa Taffeta Dong Nai colluded with I Chin Young Inc. (“I Chin Young”) to make false statements. O-Bank was misled with the fact that I Chin Young has accounts receivable due from Formosa Taffeta and Formosa Taffeta Dong Nai, causing damage to O-Bank. Therefore, O- Bank claimed that Formosa Taffeta and Formosa Taffeta Dong Nai should be jointly and severally liable with the obligation of indemnity. However, this case arose purely as a result of the personal

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behavior of the former employee. As the case is still under trial proceedings, the ultimate outcome and amount of the lawsuit cannot presently be determined. However, Formosa Taffeta and Formosa Taffeta Dong Nai have engaged lawyers to submit a strong defense to protect their rights and interests.

D. Yuanta Commercial Bank Co., Ltd. (“YCB”) filed a criminal lawsuit with a supplementary civil action against the Group’s subsidiary, Formosa Taffeta Co., Ltd. (“Formosa Taffeta”) with the Taipei District Court in October 2020. The former employees of Formosa Taffeta colluded with Loomtech Industries Inc. (“Loomtech”) to make false statements. YCB was misled with the fact that Loomtech has accounts receivable due from Formosa Taffeta, causing damage to YCB. Therefore, YCB claimed that Formosa Taffeta should be liable with the obligation of indemnity. However, this case arose purely as a result of the personal behavior of the former employee. As of August 6, 2021, the court was not in session, hence the ultimate outcome and amount of this litigation is not presently determinable. However, Formosa Taffeta has engaged a lawyer to submit a strong defense to protect its rights and interests.

10. Significant Disaster Loss

None.

11. Significant Events after the Balance Sheet Date

None.

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 Group incurred operating loss for the second quarter of 2020 and the overall operating revenue of 2020 decreased by nearly 20% than 2019, resulting in a decrease in consolidated profit before tax of almost 33%. Although in the second quarter of 2021, the operating revenue increased by nearly 49% compared to the corresponding period of last year and the Group 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 of the Group’s operations, the overall impact of the pandemic on the financial position and performance of the Group 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 Group’s objectives when managing capital are to safeguard the Group’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 Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. The Group 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.

The Group’s management strategy of its debt-to-capital ratio for the year ended December 31, 2021 is the same as that for the year ended December 31, 2020. As of June 30, 2021, December 31, 2020 and June 30, 2020, the Group’s debt-to-capital ratio was 15%, 16% and 20%, respectively.

(3) Financial instruments

A. Financial instruments by category

nancial 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 fair value through profit or loss Financial liabilities at amortised cost Lease liability	June30,2021 December31,2020 3,918,170 $ 3,888,592 $ 183,366,904 169,111,079 70,932,588 58,971,466 258,217,662 $ 231,971,137 $ June 30,2021 December31,2020 - $ 137 $ 142,707,665 121,303,545 859,233 837,790 143,566,898 $ 122,141,472 $	June30,2020
		4,023,532 $ 147,730,069 71,589,231
		223,342,832 $
		June 30,2020
		48 $ 154,416,894 896,145
		155,313,087 $

Note: Financial assets measured at amortised cost include cash and cash equivalents, financial assets measured at amortised cost, accounts and notes receivable, other receivables, and refundable deposits. Financial liabilities measured at amortised cost include short-term borrowings, 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.

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B. Financial risk management policies
(a) The Group’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. To minimize any adverse effects on the financial performance of the Group, derivative financial instruments, such as foreign exchange forward contracts and foreign currency option contracts are used to hedge certain exchange rate risk.
(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 Group’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) Information about derivative financial instruments that are used to hedge certain exchange rate risk are provided in Notes 6(2) and (12).
C. Significant financial risks and degrees of financial risks
(a) Market risk

Foreign exchange risk

i. The Group is exposed to foreign exchange risk arising from the transactions of the Company and its subsidiaries 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.
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 Group hedges foreign exchange rate by using forward exchange contracts. However, the Group does not adopt hedging accounting. Details of financial assets or liabilities at fair value through profit or loss are provided in Notes 6(2) and (12).
iv. The Group’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:

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June 30,2021	June 30,2021
Foreign Currency Amount (In Thousands) ExchangeRate 778,261 $ 27.87 3,156 33.23 15,211,086 $ 4.31 181,735 27.87 7,412,991,750 0.0012 39,492 $ 27.87 6,676 27.87 392,459 27.87 December31,2020		BookValue (NTD)
		21,690,134 $ 104,874 65,559,781 $ 5,064,954 8,895,590 1,100,642 $ 186,060 10,937,832
Foreign Currency Amount (In Thousands) 22,503 $ 497,623 23,305 13,967,268 $ 185,571 8,022,038,646 43,405 $ 6,278 367,546	ExchangeRate 28.51 28.51 28.51 4.37 28.51 0.0012 28.51 28.51 28.51	BookValue (NTD)
		641,561 $ 14,187,232 664,426 61,036,961 $ 5,290,629 9,626,446 1,237,477 $ 178,986 10,478,736

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`.` Financial assets Monetary items USD`：`NTD USD`：`RMB JPY`：`NTD Non-monetary items RMB`：`NTD USD`：`NTD VND`：`NTD Financial liabilities Monetary items USD`：`NTD JPY`：`NTD USD`：`RMB USD`：`VND	Foreign Currency Amount (In Thousands) Exchange Rate BookValue(NTD) 369,475 $ 29.66 10,958,629 $ 15,748 29.66 467,086 395,639 0.28 110,779 12,630,127 $ 4.19 52,920,232 $ 449,758 29.66 13,339,822 7,768,633,109 0.0013 10,099,223 36,862 $ 29.66 1,093,327 $ 162,736 0.28 45,566 5,543 29.66 164,405 333,800 29.66 9,900,508 June30,2020

v. Total exchange gain (loss), including realised and unrealised arising from significant foreign exchange variation on the monetary items held by the Group for the three-month and six-month periods ended June 30, 2021 and 2020 amounted to ($364,909), ($45,242), ($520,711) and ($155,534), respectively.

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

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Forthe six-monthperiod ended June 30,2021	Forthe six-monthperiod ended June 30,2021	Forthe six-monthperiod ended June 30,2021
	Sensitivity analysis
Degree ofvariation	Effect on profit or loss	Effect on other comprehensiveincome
1% 1% 1% 1% 1% 1% 1% 1%	$ 216,901 1,049 $ - - - $ 11,006 1,861 109,378	$ - - $ 655,598 50,650 88,956 $ - - -

For the six-month period ended June 30, 2020

	Forthe six-monthperiod ended June 30,2020	Forthe six-monthperiod ended June 30,2020
Financial assets Monetary items USD`：`NTD USD`：`RMB JYP`：`NTD Non-monetary items RMB`：`NTD USD`：`NTD VND`：`NTD Financial liabilities Monetary items USD`：`NTD JPY`：`NTD USD`：`RMB USD`：`VND	Sensitivityanalysis
	Effect on Degree ofvariation profit or loss 1% $ 109,586 1% 4,671 1% 1,108 1% $ - 1% - 1% - 1% $ 10,933 1% 456 1% 1,644 1% 99,005	Effect on other comprehensiveincome
		$ - - $ 529,202 133,398 100,992 $ - - - -

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Price risk

i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.
ii. The Group’s investments in equity securities comprise domestic listed, beneficiary certificate and fund. 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 six-month periods ended June 30, 2021 and 2020 would have increased/decreased by $31,345 and $32,188, 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 $1,833,669 and $1,477,301, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

i. The Group’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group 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 Group to fair value interest rate risk. During the six-month periods ended June 30, 2021 and 2020, the Group’s borrowings at variable rate were denominated in the NTD and USD.
ii. The Group’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.
iii. For the six-month periods ended June 30, 2021 and 2020, if interest rates on borrowings had been 1% higher/lower with all other variables held constant, post-tax profit for the periods then ended would have been $119,772 and $123,335 lower/higher, respectively, mainly as a result of higher/lower interest expense on floating rate borrowings.
(b) Credit risk
i. Credit risk refers to the risk of financial loss to the Group 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, classified as the contract cash flows of instruments stated at amortised cost at fair value through other comprehensive income.

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ii. The Group manages its credit risk taking into consideration the entire group’s concern. For banks and financial institutions, only independently rated parties with a minimum rating of ‘A’ are accepted. According to the Group’s credit policy, each local entity in the Group is responsible for managing and analysing the credit risk for each of their 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 Group adopts the assumptions under IFRS 9, that is, to assess whether there has been a significant increase in credit risk on that instrument since initial recognition.
iv. The Group wrote-off the financial assets, which cannot be reasonably expected to be recovered, after initiating recourse procedures. However, the Group will continue executing the recourse procedures to secure their rights. On June 30, 2021, December 31, 2020 and June 30, 2020, the Group’s written-off financial assets that are still under recourse procedures amounted to $0, $128,664 and $0, respectively.
v. The Group used the forecastability of Directorate-General of Budget, Accounting and Statistics, Executive Yuan and Taiwan Institute of Economic Research boom observation report to adjust historical and timely information to assess the default possibility of accounts receivable, contract assets and lease payments receivable. On June 30, 2021, December 31, 2020 and June 30, 2020, the provision matrix is as follows:

At June 30, 2021 Expected loss rate Total book value Loss allowance At December 31, 2020 Expected loss rate Total book value Loss allowance At June 30, 2020 Expected loss rate Total book value Loss allowance	Notpast due Up to 30 days past due 0.11%~0.92% 0.04%~22.21% 38,510,644 $ 458,466 $ 82,763 $ 15,833 $ 0.15%~0.82% 0.03%~87.58% 33,361,753 $ 191,459 $ 73,493 $ 26,028 $ 0.15%~0.34% 3.65%~13.76% 22,946,714 $ 432,063 $ 50,751 $ 7,218 $	31~90 days past due	Over 91 days past due
		0.04%~82.65% 63,187 $ 7,905 $ 0.03%~100.00% 16,900 $ 5,862 $ 63.58%~88.38% 74,791 $ 42,954 $	73.17%~100.00% 65,565 $ 48,933 $ 53.36%~100.00% 90,151 $ 50,499 $ 98.08%~100.00% 186,399 $ 182,998 $

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The ageing analysis of accounts receivable that were past due but not impaired is as follows:

June30,2021 Not past due 38,510,644 $ Up to 30 days 458,466 31 to 90 days 63,187 91 to 180 days 65,565 39,097,862 $	December31,2020 33,361,753 $ 191,459 16,900 90,151 33,660,263 $	June30,2020 22,946,714 $ 432,063 74,791 186,399
		23,639,967 $

The above ageing analysis was based on past due date.

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

The above ageing analysis was based on past due date. Movements in relation to the Group applying the simplified approach to provide loss allowance for notes and accounts receivable and contract assets are as follows:	was based on past due date. the Group applying the simplified approach to provide loss counts receivable and contract assets are as follows:	was based on past due date. the Group applying the simplified approach to provide loss counts receivable and contract assets are as follows:	was based on past due date. the Group applying the simplified approach to provide loss counts receivable and contract assets are as follows:
Accounts receivable Contract assets Notes receivable At January 1 155,882 $ - $ - $ Effect of exchange rate changes 448) ( - - At June 30 155,434 $ - $ - $ Accounts receivable Contract assets Notes receivable At January 1 284,724 $ - $ - $ Effect of exchange rate changes 803) ( - - At June 30 283,921 $ - $ - $ Forthe six-monthperiod ended June 30,2021 Forthe six-monthperiod ended June 30,2020	Forthe six-monthperiod ended June 30,2021
			Notes receivable
			- $ -
			- $
		Contract assets - $ - - $	Notes receivable
			- $ -
			- $

(c) Liquidity risk

i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Company treasury. Company treasury monitors rolling forecasts of the Group’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 Group does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities. Such forecasting takes into consideration the Group’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 Group treasury. Group 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.

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iii. The table below analyses the Group’s non-derivative financial liabilities and net-settled 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 nonderivative financial liabilities and to the expected maturity date for derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows. Non-derivative financial liabilities:

June 30, 2021 Lease liability Bonds payable Long-term borrowings December 31, 2020 Lease liability Bonds payable Long-term borrowings June 30, 2020 Lease liability Bonds payable Long-term borrowings	Less than 1year 187,329 $ 3,150,000 - Less than 1year 147,577 $ 2,050,000 56,821 Less than 1year 170,376 $ 1,350,000 1,251,535	Between 1 and2years 134,942 $ 6,200,000 8,000,000 Between 1 and2years 140,970 $ 4,550,000 8,000,000 Between 1 and2years 149,646 $ 3,150,000 4,984,217	Between 3 and 5 years 279,874 $ 20,350,000 6,971,445 Between 3 and 5 years 261,143 $ 16,600,000 8,241,267 Between 3 and 5 years 293,800 $ 17,150,000 9,181,082	Over5 years
				301,192 $ 22,400,000 - Over5 years
				267,769 $ 18,900,000 - Over5 years
				297,847 $ 11,800,000 -

Except for the aforementioned liabilities, the Group’s non-derivative financial liabilities will mature within one year.

Derivative financial liabilities:

June 30, 2021 Forward exchange contracts December 31, 2020 Forward exchange contracts June 30, 2020 Forward exchange contracts	Less than 1year - $ Less than 1year 137 $ Less than 1year 48 $	Between 1 and2years - $ Between 1 and2years - $ Between 1 and2years - $	Between 3 and 5 years - $ Between 3 and 5 years - $ Between 3 and 5 years - $	Over5 years
				- $ Over5 years
				- $ Over5 years
				- $

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     - iv. The Group 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 Group’s investment in listed stocks is included in Level 1.
- Level 2: Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. The fair value of the Group’s investment in stock investment, private equity fund market, 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.
C. The related information on financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities are as follows:

June 30, 2021 Assets: Recurring fair value measurement Financial assets at fair value through profit or loss Fund Financial assets at fair value through other comprehensive income Equity securities	Level 1 - $ 154,944,710 154,944,710 $	Level 2 3,918,170 $ 2,881,109 6,799,279 $	Level3 - $ 25,541,085 25,541,085 $	Total
				3,918,170 $ 183,366,904
				187,285,074 $

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December 31, 2020 Assets: Recurring fair value measurement Financial assets at fair value through profit or loss Derivative instruments Fund Financial assets at fair value through other comprehensive income Equity securities Liabilities: Recurring fair value measurement Financial liabilities at fair value through profit or loss Derivative instruments June 30, 2020 Assets: Recurring fair value measurement Financial assets at fair value through profit or loss Derivative instruments Fund Financial assets at fair value through other comprehensive income Equity securities Liabilities: Recurring fair value measurement Financial liabilities at fair value through profit or loss Derivative instruments	Level 1 - $ - 143,832,740 143,832,740 $ - $ Level 1 - $ - 123,416,423 123,416,423 $ - $	Level 2 82 $ 3,888,510 2,779,751 6,668,343 $ 137 $ Level 2 612 $ 4,022,920 2,489,745 6,513,277 $ 48 $	Level3 - $ - 22,498,588 22,498,588 $ - $ Level3 - $ - 21,823,901 21,823,901 $ - $	Total
				82 $ 3,888,510 169,111,079
				172,999,671 $
				137 $
				Total
				612 $ 4,022,920 147,730,069
				151,753,601 $
				48 $

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D. The methods and assumptions the Group used to measure fair value are as follows:
(a) The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:
- Listed shares Open-end fund
- Market quoted price Closing price Net asset value
(b) 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 measured by using valuation techniques can be referred to current fair value of 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.
(c) 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 Group 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.
(d) 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.
(e) The output of valuation model is an estimated value and the valuation technique may not be able to capture all relevant factors of the Group’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 Group’s management policies and relevant control procedures relating to the valuation models used for fair value measurement, management believes adjustment to valuation is necessary in order to reasonably represent the fair value of financial and non-financial instruments at the consolidated balance sheet. The inputs and pricing information used during valuation are carefully assessed and adjusted based on current market conditions.
(f) The Group takes into account adjustments for credit risks to measure the fair value of financial and non-financial instruments to reflect credit risk of the counterparty and the Group’s credit quality.
E. For the six-month periods ended June 30, 2021 and 2020, there was no transfer between Level 1 and Level 2.

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F. The following chart is the movement of Level 3 for the six-month periods ended June 30, 2021 and 2020:

and 2020:
			Forthe six-monthperiod ended June 30,	2021
			Non-derivative equityinstrument
At January 1	$		22,498,588
Gains and losses 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			3,184,849
Transfers out from level 3	(			142,352)
At June 30		$	25,541,085
			Forthe six-monthperiod ended June 30,	2020
			Non-derivative equityinstrument
At January 1	$		31,283,890
Gains and losses 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	(		9,139,721)
Effect of exchange rate changes	(			320,268)
At June 30		$	21,823,901

G. Because the investment target has been traded in active market from June 2021, and there is insufficient observable market information available, the Group has transferred the fair value from Level 3 into Level 1 at the end of the month when the event occurred.
H. The Group 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.

~99~

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	Fair value at June 30, 2021	Fair value at December 31, 2020	Fair value at June 30, 2020	Valuation technique	Significant unobservable input	Relationship of inputs to fair value
	$ 7,417,031 1,680,765 16,443,289	$ 10,773,066 998,799 10,726,723	$ 10,106,073 1,177,931 10,539,897	Market comparable companies Discounted cash flow Net asset value	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 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 Not applicable	The higher the multiple, the higher the fair value The higher the long-term revenue growth rate and long-term pre-tax operating margin, the higher the fair value Not applicable

~100~

J. The Group 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:

ave changed:
Financial assets Equity instruments Equity instruments Financial assets Equity instruments Equity instruments	Input	Change ± 1% ± 1% Change ± 1% ± 1%	June 30,2021
			Recognisedinothercomprehensiveincome
			Favourable change Unfavourable change 74,170 $ 74,170 $ 16,808 $ 16,808 $ Favourable change Unfavourable change 107,731 $ 107,731 $ 9,988 $ 9,988 $ Recognised in other comprehensive income December31,2020	Unfavourable change
	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 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 Input			74,170 $
				16,808 $
	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 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			107,731 $
				9,988 $

~101~

Input	June30,2020	June30,2020
	Recognisedinothercomprehensiveincome
	Favourable change 101,061 $ 11,779 $	Unfavourable change
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 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		101,061 $
		11,779 $

13. Supplementary Disclosures

(1) Significant transactions information

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: Please refer to Notes 6(2), and (12); 12(3) and (4).
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.

~102~

(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

(1) General information

The Group’s reportable segments are strategic business units and provide different products and services. Strategic business units are separately managed because each unit needs different techniques and marketing strategies. The Group’s reportable segments are as follows:

1st Petrochemical Div: responsible for production of benzene, p-xylene and o-xylene.
2nd Petrochemical Div: responsible for production of styrene, synthetic phenolic and acetone.
3rd Petrochemical Div: responsible for production of purified terephthalic acid.
Plastics Division: responsible for production of ABS resin, polypropylene and PS. Formosa Taffeta Co., Ltd.: responsible for production of blended fabric, spun fabric, cross-woven fabric, polyamine and polyester fabric, epidemic fabric, designer sportswear fabric, high-tech and function fabric, tire cord fabric, pure cotton yarn, blended yarn, various functional yarn, fireproof fabric, anti-static cloth and industrial fabric, and operation of petrol stations to sell petroleum, diesel fuel, kerosene and small package of petroleum products and provide car wash services.
Formosa Advanced Technologies Co.: responsible for IC packaging, testing and production of memory module.

(2) Measurement of segment information

The Group has not yet amortised tax expenses or non-recurring gains and losses to reportable segments. Further, not all reportable segments’ profit or loss include significant non-cash items besides depreciation and amortisation. Reporting amount and reports for operating decision-maker are the same.

The Group’s operating segment profit or loss is measured based on operating income before tax for performance assessment basis. The Group considers the sale and transfer among segments as transactions with third parties and measured at market price.

~103~

(3) Information about segment profit or loss, assets and liabilities

For the six-month period ended June 30, 2021

External revenue Internal revenue Total revenue Segment profit (loss) Total assets of segments	1st Petrochemical Div 22,983,471 $ 37,721,208 60,704,679 $ 2,641,864 $ 36,560,694 $	2nd Petrochemical Div 26,958,432 $ 13,207,817 40,166,249 $ 5,613,820 $ 32,035,498 $	3rd Petrochemical Div 28,665,635 $ 2,204,427 30,870,062 $ 2,973,183 $ 39,739,820 $	Plastics Division 63,850,917 $ 12,485,691 76,336,608 $ 12,230,635 $ 57,638,630 $	Formosa Taffeta Co.,Ltd. 11,840,802 $ 129,860 11,970,662 $ 1,167,551 $ 79,445,651 $	Reconciliation Other divisions and offset 25,730,651 $ - $ 5,475,709 71,224,712) ( 31,206,360 $ 71,224,712) ($ 16,681,416 $ 8,050,040) ($ 460,671,501 $ 128,555,345) ($	Discontinued operation - $ - - $ - $ - $	Total
								180,029,908 $ -
								180,029,908 $
								33,258,429 $
								577,536,449 $

For the six-month period ended June 30, 2020

1st Petrochemical Div External revenue 10,427,506 $ Internal revenue 22,831,980 Total revenue 33,259,486 $ Segment profit (loss) 3,213,674) ($ Total assets of segments 32,013,318 $	2nd Petrochemical 3rd Petrochemical Div Div 19,023,760 $ 19,513,619 $ 9,621,227 938,018 28,644,987 $ 20,451,637 $ 736,613 $ 2,156,551) ($ 27,001,929 $ 32,846,598 $	Plastics Division 38,544,319 $ 5,928,347 44,472,666 $ 3,470,259 $ 36,642,466 $	Formosa Taffeta Reconciliation Discontinued Co.,Ltd. Other divisions and offset operation Total 10,866,160 $ 22,074,090 $ - $ 17,555) ($ 120,431,899 $ 127,030 4,443,393 43,889,995) ( - - 10,993,190 $ 26,517,483 $ 43,889,995) ($ 17,555) ($ 120,431,899 $ 1,696,137 $ 216,309) ($ 2,428,733) ($ 484 $ 2,111,774) ($ 71,441,939 $ 419,878,137 $ 109,501,037) ($ - $ 510,323,350 $	Total
				120,431,899 $ -
				120,431,899 $
				510,323,350 $

~104~

(4) Reconciliation for segment income (loss)

Sales between segments are carried out at arm’s length. The revenue from external parties reported to the chief operating decision-maker is measured in a manner consistent with that in the statement of comprehensive income.

~105~

Formosa Chemicals and Fibre Corporation and subsidiaries

Table 1

Loans to others

For the six-month period ended June 30, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

No. （Note 1）	Creditor	Borrower	General ledger account （Note 2）	Is a related party	Maximum outstanding balance during the six-month period ended June 30, 2021 （Note 3）	Balance at June 30, 2021 （Note 8）	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`）`	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party （Note 7）	Ceiling on total loans granted （Note 7）	Footnote
													Item	Value
0 0 0 0 0 0 0	The Company The Company The Company The Company The Company The Company The Company	Formosa Plastics Corp. Formosa Idemitsu Petrochemical Corp. Nan Ya Plastics Corp. Formosa Biomedical Technology Corp. Formosa Heavy Industries Corp. Formosa Plastics Marine Co., Ltd. Formosa FCFC Carpet Corp.	Other receivables- related parties Other receivables- related parties Other receivables- related parties Other receivables- related parties Other receivables- related parties Other receivables- related parties Other receivables- related parties	Yes Yes Yes Yes Yes Yes Yes	7,500,000 $ 500,000 7,500,000 500,000 9,100,000 4,735,866 100,000	6,000,000 $ 500,000 6,000,000 500,000 6,000,000 4,323,966 100,000	- $ - - - - 3,609,966 -	1.23 1.23 1.23 1.23 1.23 1.23 1.23	1 1 1 2 2 2 2	2 2 2 1 1 1 1	Additional operating capital Additional operating capital Additional operating capital Additional operating capital Additional operating capital Additional operating capital Additional operating capital	- $ - - - - - -	- - - - - - -	- $ - - - - - -	91,309,192 $ 91,309,192 91,309,192 73,047,353 73,047,353 73,047,353 73,047,353	182,618,383 $ 182,618,383 182,618,383 146,094,707 146,094,707 146,094,707 146,094,707	- - - - - - -

Table 1, Page 1

No. （Note 1）	Creditor	Borrower	General ledger account （Note 2）	Is a related party	Maximum outstanding balance during the six-month period ended June 30, 2021 （Note 3）	Balance at June 30, 2021 （Note 8）	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`）`	Allowance for doubtful accounts	Collateral	Collateral	Limit on loans granted to a single party （Note 7）	Ceiling on total loans granted （Note 7）	Footnote
													Item	Value
0 0 2	The Company The Company Formosa Power (Ningbo) Co., Ltd.	Hong Jing Resources Corp. Formosa Petrochemical Corp. Formosa Chemicals Industries (Ningbo) Co., Ltd.	Other receivables- related parties Other receivables- related parties Receivables from related party	Yes Yes Yes	500,000 $ 7,500,000 7,798,842	500,000 $ 6,000,000 5,263,202	- $ - 5,263,202	1.23 1.23 3.08~3.32	2 1 1	1 2 2	Additional operating capital Additional operating capital Additional operating capital	- $ - -	- - -	- $ - -	73,047,353 $ 91,309,192 8,377,506	146,094,707 $ 182,618,383 16,755,012	- - -

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 six-month period ended June 30, 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

Table 2

Formosa Chemicals and Fibre Corporation and subsidiaries Provision of endorsements and guarantees to others

For the six-month period ended June 30, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Number （Note 1）	Endorser/ guarantor	Party being endorsed/guaranteed	Party being endorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party （Note 3）	Maximum outstanding endorsement/ guarantee amount as of June 30, 2021 （Note 4）	Outstanding endorsement/ guarantee amount at June 30, 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 0 0 1 1 1 1 1	The Company The Company The Company Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd.	Formosa Group (Cayman) Limited Formosa Ha Tinh (Cayman) Limited Formosa Resources Corporation Formosa Taffeta (Zhongshan) Co., Ltd. Formosa Taffeta (Vietnam) Co., Ltd. Formosa Taffeta (Changshu) Co., Ltd. Formosa Taffeta (Dong Nai) Co., Ltd. Formosa Ha Tinh (Cayman) Co., Ltd.	6 6 6 2 2 2 2 6	237,403,898 $ 237,403,898 237,403,898 42,090,066 42,090,066 42,090,066 42,090,066 42,090,066	7,132,750 $ 18,903,708 3,067,083 941,655 1,512,355 1,569,425 4,031,380 6,356,390	6,967,500 $ 13,795,806 2,996,025 919,380 1,476,580 1,532,300 3,872,540 4,640,782	6,967,500 $ 13,795,806 2,996,025 13,930 456,224 316,178 2,615,480 4,640,782	- $ - - - - - - -	1.91 3.78 0.82 1.42 2.28 2.37 5.98 7.17	474,807,796 $ 474,807,796 474,807,796 84,180,133 84,180,133 84,180,133 84,180,133 84,180,133	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 and subsidiaries

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

For the six-month period ended June 30, 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 ofJune	30,2021	Fairvalue Footnote
				Number of shares	Bookvalue	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 parties Other related parties Other related parties Other related parties - - Other related parties Other related parties - - Other related parties	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 15,002,811 1,070,151 63,174	50,158,805 $ 2,489,509 34,388,869 26,684,788 307,720 3,811,572 1,351,068 1,847,910 1,972,870 17,700 16,998	7.65 14.97 5.21 10.81 3.09 - 17.98 2.92 2.00 0.79 1.51	50,158,805 $ - 2,489,509 - 34,388,869 - 26,684,788 - 307,720 - 3,811,572 - 1,351,068 - 1,847,910 - 1,972,870 - 17,700 - 16,998 -

Table 3, Page 1

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer（Note 2）	General ledger account		As ofJune	30,2021	Fairvalue Footnote
				Number of shares	Bookvalue	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 parties Other related parties Other related parties Other related parties Other related parties - - Other related parties - - Other related parties Other related parties	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 18,255,356 2,925,000 2,428,500 2,622 3,750,000 2,500,000 621,178,219 865,373 - 5,300,000 251,120	53,441 $ 329,698 269,632 159,939 353,735 1,862,320 34,763 20,800 12,291,688 18,086 106,598 - 13,731	1.41 18.22 18.00 12.50 15.00 19.00 3.91 1.97 11.43 0.18 - 15.14 1.07	53,441 $ - 329,698 - 269,632 - 159,939 - 353,735 - 1,862,320 - 34,763 - 20,800 - 12,291,688 - 18,086 - 106,598 - - - 13,731 -

Table 3, Page 2

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer（Note 2）	General ledger account		As ofJune	30,2021	Fairvalue Footnote
				Number of shares	Bookvalue	Ownership (%)
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. 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 parties - - Ultimate parent company - Other related parties Other related parties Other related parties Other related parties Other related parties - Other related parties	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 15,897,600 12,169,610 35 640 482,194 10,000,000 7,711,010 365,267,576 234,166 14,400	11,760 $ 4,521 978,352 3,123,878 1,030,765 - 66 40,119 391,600 614,568 38,900,997 21,431 40,526	4.67 0.46 13.42 17.40 0.21 - - 0.01 2.35 0.25 3.83 0.54 10.00	11,760 $ - 4,521 - 978,352 - 3,123,878 - 1,030,765 3 - - 66 - 40,119 - 391,600 - 614,568 - 38,900,997 - 21,431 - 40,526 -

Table 3, Page 3

Securities held by	Marketable securities （Note 1）	Relationship with the securities issuer（Note 2）	General ledger account		As ofJune	30,2021	Fairvalue Footnote
				Number of shares	Bookvalue	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 parties Other related parties Other related parties 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	789,000 337,183 600 5,540,000 209,010,676 2,193,228	27,224 $ 505 243,006 34,509 4,134,357 71,499	1.20 3.17 3.00 2.50 3.85 0.13	27,224 $ - 505 - 243,006 - 34,509 - 4,134,357 - 71,499 -

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 (17).

Table 3, Page 4

Formosa Chemicals and Fibre Corporation and subsidiaries

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 six-month period ended June 30, 2021

							For the six-month period ended June 30, 2021	For the six-month period ended June 30, 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 at June 30,2021 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 Resources Corporation	Investments accounted for using equity method	Formosa Resources Corporation	Related parties	741,594,000	$ 6,169,287	88,453,125	$ 887,813	-	$ -	$ -	$ -	830,047,125	$ 6,875,665

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.

Table 4, Page 1

Table 5

Expressed in thousands of NTD (Except as otherwise indicated)

Formosa Chemicals and Fibre Corporation and subsidiaries Acquisition of Individual Real Estate at Costs of at Least NT$300 Million or 20% of the Paid-in Capital For the six-month period ended June 30, 2021

Real estate acquired by	Property	Event Date	Transaction Amount	Payment Status	Counterparty	Relationship	Informationon PreviousTitleTransfer ifCounterpartyis aRelatedParty	Informationon PreviousTitleTransfer ifCounterpartyis aRelatedParty	Informationon PreviousTitleTransfer ifCounterpartyis aRelatedParty	Informationon PreviousTitleTransfer ifCounterpartyis aRelatedParty	PricingReference	Purpose of Acquisition	Other Terms
							Property Owner	Relationship	Transaction Date	Amount
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	$ 508,800	Unpaid	Natural person	-	-	-	-	$ -	Bargaining	In consideration of future operational development needs	-

Note: On April 28, 2021, the Board of Directors resolved to acquire the asset.

Table 5, Page 1

Formosa Chemicals and Fibre Corporation and subsidiaries

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 six-month period ended June 30, 2021

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Differences in transaction terms compared to third partytransactions（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 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. Formosa Taffeta Co., Ltd.	Other related parties Other related parties Subsidiary Associates Subsidiary Subsidiary Other related parties Subsidiary Other related parties Other related parties Other related parties Associates Subsidiary	Sales 1,352,700) ($ 1) ( 30 days Sales 14,463,571) ( 12) ( 30 days Sales 259,048) ( - 60 days Sales 13,789,007) ( 12) ( 30 days Sales 15,901,175) ( 13) ( 90 days Sales 1,799,973) ( 2) ( 30 days Sales 218,303) ( - 30 days Sales 9,403,192) ( 8) ( 30 days Sales 636,779) ( 1 30 days Purchases 3,337,794 3 30 days Purchases 7,616,669 8 30 days Purchases 67,273,570 70 30 days Sales 60 days 593,899) ( -	$ - - - - - - - - - - - - - - - - - - - - - - - - - -	221,443 $ 1 - 2,675,734 11 - Notes receivable 138,689 29 - Accounts receivable 179,426 1 - 100,744 - - 2,296,397 10 - 8,106,769 35 - 320,315 1 - 48,030 - - 1,578,796 7 - 287,230 1 - 608,678) ( 4) ( - 1,223,135) ( 7) ( - 10,974,543) ( 67) ( -

Table 6, Page 1

Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	Differences in transaction terms compared to third partytransactions（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 BP Chemicals Corp. Formosa BP Chemicals Corp. Formosa BP Chemicals Corp. Formosa BP 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 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 (Dong Nai) Corp. Formosa Taffeta (Long An) Corp. Formosa Plastics Corp.	Parent company Other related parties Associates Associates Associates Other related parties Other related parties Other related parties Other related parties Associates Parent company Other related parties Associates Associates Other related parties	Sales 819,637) ($ 17) ( 30 days Sales 109,641) ( 2) ( 30 days Sales 366,962) ( 8) ( 30 days Purchases 1,145,685 56 45 days Sales 1,486,748) ( 52) ( 30 days Sales 1,048,972) ( 36) ( 30 days Sales 226,902) ( 8) ( 30 days Sales 3,638,430) ( 8) ( 90 days Purchases 1,101,399 3 90 days Purchases 1,028,171 3 90 days Sales 517,717) ( 4) ( 60 days Sales 284,407) ( - 30 days Sales 312,010) ( 2) ( 60 days Sales 154,526) ( 1) ( 60 days Purchases 222,178 2 30 days	$ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -	170,070 $ 12 - 29,766 2 - 58,701 4 - 199,254) ( 69) ( - 432,640 65 - 187,370 28 - 39,957 6 - 667,818 4 - 410,191) ( 3) ( - 172,532) ( 1) ( - 190,862 9 - 52,687 2 - 113,315 5 - 75,844 3 - 37,856) ( 3) ( -

Table 6, Page 2

Differences in transaction

				Differences in transaction
Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	terms compared to third partytransactions（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 Idemitsu Petrochemical Corp. Formosa Idemitsu Petrochemical Corp. Formosa Idemitsu Petrochemical Corp. Formosa Idemitsu Petrochemical Corp. Formosa Idemitsu Petrochemical Corp. Formosa Idemitsu Petrochemical Corp. Formosa Biomedical Technology Corp. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta Co., Ltd. Formosa Taffeta (Changshu) Co., Ltd. Formosa Taffeta (Zhong Shan) Co., Ltd.	Nan Ya Plastics Corp. 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. Nan Ya Technology Corp. Kuang Yueh Enterprise Co., Ltd. Formosa Petrochemical Corp. Nan Ya Plastics Corp. Formosa Plastics Corp. Kuang Yueh (Vietnam) Co., Ltd. Formosa Taffeta (Changshu) Co., Ltd.	Other related parties Parent company Associates Associates Associates Associates Associates Other related parties Associates Other related parties Other related parties Other related parties Other related parties Affiliation	Purchases 1,187,630 $ 11 30 days Sales 1,941,062) ( 18) ( 30 days Sales 235,909) ( 2) ( 30 days after closing date Sales 463,481) ( 4) ( 30 days after closing date Sales 371,994) ( 4) ( 30 days after closing date Sales 479,373) ( 5) ( 30 days after closing date Sales 151,512) ( 1) ( 30 days after closing date Sales 100,401) ( 8) ( 30 days Sales 240,894) ( 2) ( Pay by mail transfer 60 days after delivery Purchases 4,541,502 20 Pay every 15 days by mail transfer Purchases 389,389 2 Pay by mail transfer on the 15th of the following month Purchases 103,508 - Pay by mail transfer on the 15th of the following month Sales 105,041) ( 13) ( Pay by mail transfer 60 days after delivery Sales 212,405) ( 25) ( 60 days after monthly billings	$ - - - - - - - - - - - - - - - - - - - - - - - - - - - -	345,592) ($ 24) ( - 323,969 21 - 56,808 4 - 42,590 3 - 80,747 5 - 113,869 7 - 55,358 4 - 2,992 1 - 98,499 4 - 341,021) ( 27) ( - 43,528) ( 3) ( - 14,625) ( 1) ( - 40,425 25 - 188,390 61 -

Table 6, Page 3

Differences in transaction

				Differences in transaction
Purchaser/seller	Counterparty	Relationship with the counterparty	Transaction	terms compared to third partytransactions（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 (Dong Nai) Co., Ltd. Formosa Taffeta (Dong Nai) Co., Ltd. Formosa Taffeta (Vietnam) Co., Ltd.	Formosa Taffeta (Vietnam) Co., Ltd. Kuang Yueh (Vietnam) Co., Ltd. Formosa Industries Corp.	Affiliation Other related parties Associates	Sales 175,507) ($ 7) ( 60 days after monthly billings Sales 135,339) ( 6) ( 60 days after monthly billings Purchases 131,850 14 60 days after monthly billings	$ - - - - - -	78,660 $ 6 - 69,792 6 - 36,450) ( 17) ( -

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

Table 6, Page 4

Formosa Chemicals and Fibre Corporation and subsidiaries

Table 7

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

For the six-month period ended June 30, 2021

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at June 30, 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 Formosa BP Chemicals 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. The Company The Company The Company	Formosa Plastics Corp. Nan Ya Plastics Corp. Formosa Taffeta (Dong Nai) Co., Ltd. Formosa Industries Corp. Formosa Idemitsu Petrochemical Corp. Formosa Plastic Corp. U.S.A. The Company Idemitsu Chemicals (Hong Kong) Co., Ltd. The Company Formosa Chemicals Industries (Ningbo) Co., Ltd. Formosa Plastics (Ningbo) Co., Ltd. Nan Ya Plastics (Ningbo) Corp. Formosa Taffeta Co., Ltd. Formosa Chemicals Industries (Ningbo) Co., Ltd. Formosa Petrochemical Corp.	Other related parties Other related parties Subsidiary Subsidiary Subsidiary Associates Associates Associates Associates Associates Other related parties Other related parties Subsidiary Subsidiary Associates	221,443 $ 2,675,734 Notes receivable 138,689 Accounts receivable 179,426 100,744 Accounts receivable 2,296,397 Other receivables 185,933 320,315 Accounts receivable 8,106,769 Other receivables 279,535 1,578,796 287,230 170,070 113,869 323,969 432,640 187,370 667,818	10.57 12.03 5.68 11.14 10.88 15.95 10.85 8.72 12.31 8.60 10.48 12.37 3.96 4.67 13.86	- $ - - - - - - - - - - - - - -	- - - - - - - - - - - - - - -	221,443 $ 2,675,734 10,846 128,455 41,115 2,296,397 65,253 135,991 3,523,432 - 1,578,796 67,401 159,934 97,291 323,969 423,179 187,370 667,818	- $ - - - - - - - - - - - - - - - - -

Table 7, Page 1

Creditor	Counterparty	Relationship with the counterparty	Balance as at June 30, 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 Industries Corp. Formosa Taffeta (Zhong Shan) Co., Ltd.	The Company Formosa Taffeta (Dong Nai) Co., Ltd. Formosa Taffeta (Changshu) Co., Ltd.	Associates Other related parties Associates	190,862 $ 113,315 188,390	8.47 8.47 2.94	- $ - -	- - -	55,658 $ 28,119 67,025	- $ - -

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 and subsidiaries

Table 8

Significant inter-company transactions during the reporting period

For the six-month period ended June 30, 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(Note3)
0 0	The Company The Company	Formosa Chemicals Industries (Ningbo) Co., Ltd. Formosa Idemitsu Petrochemical Corp.	1 1	Sales revenue Sales revenue	15,901,175) ($ 9,403,192) (	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 and subsidiaries

Table 9

Expressed in thousands of NTD (Except as otherwise indicated)

Information on investees (Excluding those in Mainland China)

For the six-month period ended June 30, 2021

Investor	Investee `（`Note1,2`）`	Location	Mainbusiness activities	Initial investment amount	Initial investment amount	Shares	held as at June 30,2021	held as at June 30,2021	Net profit (loss) of the investee for the six-month period ended June 30,2021	Investment income (loss) recognised by the Company for the six-month period ended June 30,2021	Footnote
				Balance as at June 30,2021	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 BP 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	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	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	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	86.40 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	738,754 $ 23,800,307 7,371,888 64,615 1,225,841 80,436,939 12,255,661 65,518,424 3,031 327,100 1,639,360 7,189,704 2,380,083 228,530 4,712,611	- $ 1,121,371 322,808 33,908) ( 143,778 31,505,067 559,364 5,416,292 7 26,055) ( 809,846 1,216,438 1,888,460 4,849 173,422	- $ 419,393 106,371 11,302) ( 47,921 7,537,227 139,505 5,416,292 2 13,289) ( 403,140 516,985 899,577 1,179 150,977	- - - - - - - - - - - - - - -

Table 9, Page 1

Investor	Investee `（`Note1,2`）`	Location	Mainbusiness activities	Initial investment amount	Initial investment amount	Shares	held as at June 30,2021	held as at June 30,2021	Net profit (loss) of the investee for the six-month period ended June 30,2021	Investment income (loss) recognised by the Company for the six-month period ended June 30,2021	Footnote
				Balance as at June 30,2021	Balance as at December31,2020	Numberofshares	Ownership (%)	Bookvalue
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 Biomedical Technology Corp.	Formosa FCFC Carpet Corp. 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. Formosa Bio& Energy Crop. (Japan)	Taiwan Hong Kong Taiwan Cayman Islands Taiwan United States Hong Kong Taiwan Taiwan Samoa Taiwan Japan	Yarn spinning mills, finishing of textiles and carpet manufacturing 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 Investments	300,000 $ 4,214,914 8,303,053 377 600,000 3,413,031 29,959,815 90,000 476,196 29,610 7,650 5,018	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 5,018	22,037,185 138,333,334 830,047,125 12,500 60,000,000 6,000 - 467,400 27,336,218 - 765,001 18,105	100.00 33.34 25.00 25.00 33.33 30.00 100.00 30.00 71.00 100.00 57.00 51.00	193,827 $ 2,216,358 6,875,665 646,638 588,659 3,022,667 49,665,309 94,197 578,451 996 15,431 4,031	3,739) ($ 260,037) ( 108,769 48,292 47,536 71,352) ( 5,341,968 1,303) ( 53,253 809 8,287 221) (	3,739) ($ 86,695) ( 23,911 12,073 15,843 22,205) ( 5,341,968 131) ( 37,809 809 4,723 112) (	- - - - - - - - - - - -

Table 9, Page 2

Investor	Investee `（`Note1,2`）`	Location	Mainbusiness activities	Initial investment amount	Initial investment amount	Shares	held as at June 30,2021	held as at June 30,2021	Net profit (loss) of the investee for the six-month period ended June 30,2021	Investment income (loss) recognised by the Company for the six-month period ended June 30,2021	Footnote
				Balance as at June 30,2021	Balance as at December31,2020	Numberofshares	Ownership (%)	Bookvalue
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 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	Taiwan Taiwan Hong Kong Vietnam Taiwan Vietnam Vietnam Switzerland	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	114,912 $ 1,762,711 1,356,862 1,709,221 213,771 2,590,434 1,987,122 1,285,507	114,912 $ 1,762,711 1,356,862 1,709,221 213,771 2,590,434 1,987,122 1,285,507	16,100,000 135,686,472 - - 18,595,352 - - 21,874	100.00 30.68 100.00 100.00 17.99 100.00 10.00 50.00	207,946 $ 5,221,874 1,201,765 2,112,726 1,229,668 2,356,294 1,800,065 1,132,432	17,617) ($ 719,751 31,143 64,595 209,985 177,838 1,216,438 144,201) (	17,617) ($ 220,820 31,143 64,595 64,207 177,838 121,644 72,101) (	- - - - - - - -

Table 9, Page 3

Investor	Investee `（`Note1,2`）`	Location	Mainbusiness activities	Initial investment amount	Initial investment amount	Shares	held as at June 30,2021	held as at June 30,2021	Net profit (loss) of the investee for the six-month period ended June 30,2021	Investment income (loss) recognised by the Company for the six-month period ended June 30,2021	Footnote
				Balance as at June 30,2021	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	81,304 $ 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	186,324 $ 18,073 16,888 1,060	37,341 $ 719,751 3,053 209,985	5,681 $ 776 3,053 32	- - - -

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 June 30, 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 six-month period ended June 30, 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 six-month period ended June 30, 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 and subsidiaries

Table 10

Information on investments in Mainland China

For the six-month period ended June 30, 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 from Taiwan to Mainland China/Amount remitted back to Taiwan for the six-month period ended June 30, 2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the six-month period ended June 30, 2021	Accumulated amount of remittance from Taiwan to Mainland China as of June 30, 2021	Net income of investee for the six-month period ended June 30,2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the six-month period ended June 30,2021	Book value of investments in Mainland China as of June 30, 2021	Accumulated amount of investment income remitted back to Taiwan as of June 30, 2021	Footnote
					Remitted to Mainland China	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	74,325 $ 5,341,967 260,037) ( 809 68,290 30,239	100.00 100.00 33.33 100.00 100.00 100.00	74,325 $ 5,341,967 86,697) ( 809 68,290 30,239	15,957,977 $ 49,665,309 2,216,358 996 1,886,342 1,090,028	- $ - - - - -	- - - - 3 4

Table 10, Page 1

Formosa Chemicals and Fibre Corporation and subsidiaries

Table 10

Information on investments in Mainland China

For the six-month period ended June 30, 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 from Taiwan to Mainland China/Amount remitted back to Taiwan for the six-month period ended June 30, 2021	Amount remitted from Taiwan to Mainland China/Amount remitted back to Taiwan for the six-month period ended June 30, 2021	Accumulated amount of remittance from Taiwan to Mainland China as of June 30, 2021	Net income of investee for the six-month period ended June 30,2021	Ownership held by the Company (direct or indirect)	Investment income (loss) recognised by the Company for the six-month period ended June 30,2021	Book value of investments in Mainland China as of June 30, 2021	Accumulated amount of investment income remitted back to Taiwan as of June 30, 2021	Footnote
					Remitted to Mainland China	Remitted back to Taiwan
Changshu Yu Yuan Development Co., Ltd.	Building and selling real estate	70,788 $	2	- $	- $	- $	- $	79 $	40.78	32 $	16,223 $	- $	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: The investment income (loss) recognised in the current period was based on the financial statements that were not reviewed by the independent auditors, except for Formosa Chemicals Industries (Ningbo) Co., Ltd. whose financial statements were reviewed by the parent company’s CPA.

Note 3: The Company's paid-in capital, accumulative remittance from Taiwan as of January 1, 2021 and June 30, 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 June 30, 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 June 30, Economic Affairs Commission of Company name 2021 (MOEA) MOEA The Company $ 38,174,279 $ 39,676,568 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 and subsidiaries

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

For the six-month period ended June 30, 2021

Table 11

Expressed in thousands of NTD (Except as otherwise indicated)

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		Others
	Amount	%	Amount	%	Balance at June30,2021	%	Balance at June30,2021	Purpose	Maximum balance for the six-month period ended June30,2021	Balance at June30,2021	Interest rate	Interest for the six-month period ended June30,2021
Formosa Taffeta (Zhongshan) Co., Ltd. Formosa Taffeta (Changshu) Co., Ltd.	$ 3,536 13,093	0.03 0.11	$ - -	- -	$ 507 5,530	0.02 0.25	$ 919,380 1,532,300	For short-term loans from financial institutions For short-term loans from financial institutions	$ - -	- $ -	- -	- $ -	- -

Table 11, Page 1

Formosa Chemicals and Fibre Corporation and subsidiaries Information on Major Shareholders

For the six-month period ended June 30, 2021

Table 12

Expressed in thousands of NTD (Except as otherwise indicated)

Name of Major Shareholder	Shares	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

AI assistant

FCFC — Interim / Quarterly Report 2021

51780_rns_2021-11-16_9d76a854-01ab-4251-8cbc-ee9aef393652.pdf

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

FORMOSA CHEMICALS & FIBRE CORPORATION

AND SUBSIDIARIES

INDEX

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Other matter – reviews of the other independent auditors

Wu, Han-Chi

[Chou, Chien-Hung ]

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

FORMOSA CHEMICALS & FIBRE CORPORATION AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

FOR THE SIX-MONTH PERIODS ENDED JUNE 30, 2021 AND 2020

1. History and Organization

3. Application of New Standards, Amendments and Interpretations

the Group

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

4. Summary of Significant Accounting Policies

(1) Compliance statement

(2) Basis of preparation

(3) Basis of consolidation

B. Subsidiaries included in the consolidated financial statements:

Balance sheets

Statements of comprehensive income

Statements of cash flows

(4) Foreign currency translation

B. Translation of foreign operations

(5) Classification of current and non-current items

(6) Cash equivalents

(7) Financial assets at amortised cost

(13) Inventories

(17) Intangible assets

(18) Impairment of non-financial assets

(19) Borrowings

(20) Notes and accounts payable

(21) Financial liabilities at fair value through profit or loss

(22) Bonds payable

(23) Derecognition of financial liabilities

(24) Offsetting financial instruments

(25) Non-hedging derivatives

(26) Employee benefits

(28) Treasury shares

(29) Dividends

(30) Revenue recognition

(31) Operating segments

5. Critical Accounting Judgements, Estimates and Key Sources of Assumption Uncertainty

B. Evaluation of inventories

6. Details of Significant Accounts

(1) Cash and cash equivalents

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

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

(4) Financial assets at amortised cost

(5) Notes and accounts receivable

(6) Inventories

A. Associates

Shareholding ratio

Balance sheets

Statements of comprehensive income

(8) Property, plant and equipment

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

(10) Non-current assets held for sale and discontinued operations

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

(13) Other payables

(14) Bonds payable

FCFC Interim / Quarterly Report 2021