FOPCO — Audit Report / Information 2021

Nov 12, 2021

Ticker Symbol: 1225

Formosa Oilseed Processing Co., Ltd.

Individual Financial Statement and Accountant’s Audit Report 2021 and 2020

Address: No. 453, Section 1, Shatian Road, Dadu District, Taichung City Tel: (04)2693-0625

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§TABLE OF CONTENTS§

ITEMS I. Cover II. Table of Contents III. Accountant’s Audit Report IV. Individual Balance Sheets V. Individual Statements of Comprehensive Income VI. Individual Statements of Changes in Equity VII. Individual Statements of Cash Flows VIII. Notes for Individual Financial Statements (1) Company’s History (2) Date of Approval and Procedures for Financial Statements (3) Application of Newly Announced Standards for Amendments and Interpretations (4) Statement for Summaries for Significant Accounting Policies (5) Main Sources for Significant Accounting Judgment and Estimation, and Hypothesis of Uncertainties (6) Description for Significant Accounting Items (7) Related Parties Transactions (8) Pledged Assets (9) Significant Contingent Liabilities and Unrecognized Contract Commitments (10) Significant Loss Due to Disasters (11) Significant Subsequent Events (12) Other (13) Notes for Disclosed Matters 1. Related Information on Significant Transaction Matters 2. Related Information on Reinvestment Businesses 3. Information on Investment in China 4. Information on Major Shareholders (14) Department Information IX. List of Significant Accounting Items	PAGE NO. 1 2 3-6 7 8-9 10 11-12 13 13 13-15 15-24 24 24-52 52-56 56 56 - - 57 58, 60-62 58, 60-63 59, 64 59, 65 - 66-82	FINANCIAL REPORT NOTES
		NUMBERING - - - - - - - 1 2 3 4 5 6-26 27 28 29 - - 30 31 31 31 31 - -

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Accountant’s Audit Report

Formosa Oilseed Processing Co., Ltd. (FOPCO):

Opinion

FOPCO’s individual balance sheets for December 31, 2021 and 2020, and individual statements of comprehensive income from January 1 to December 31, 2021 and 2020, individual statements of changes in equity, individual statements of cash flows, and notes for indivudual financial statements (including summaries for significant accounting policies), have already been audited by the Accountant.

According to the Accountant’s opinion, the preparation of all significant aspects of the above-mentioned individual financial statements refers to the Guidelines for the Preparation of Financial Reports for Issuer of Securities. It is sufficient to appropriately express FOPCO’s individual financial situation for December 31, 2021 and 2020, and its individual financial performance and individual cash flow from January 1 to December 31, 2021 and 2020.

The Basis of Opinion

The Accountant referred to the Rules Governing Auditing and Certification of Financial Statements by Certified Public Accountants and the Generally Accepted Auditing Standards (GAAS) to execute the audit. The Accountant’s responsibilities under such standards will be further elaborated i n the section regarding the accountants’ responsibilities for auditing consolidated financial statements. The Accountant is independent of the Company in accordance to the code of ethics for accountants, and remain detached with FOPCO while performing other duties under such regulations. The Accountant believes there is sufficient and appropriate evidence obtained for auditing as the basis of opinion for auditing.

Key Audit Matters

Key Audit Matters (KAMs) refers to the most important matters that , to the Accountant’s professional judgment, found in FOPCO’s 2021 individual financial statements audits. Such matters have been addressed to during the general forming process of the opinion for individual financial statements audit. The Accountant did not express separate opinions regarding such matters. KAMs regarding FOPCO’s 2021 individual financial statements are stated as follow:

Depreciation of Inventories

FOPCO measures its cost of inventories by the lower of cost and net realizable value. When comparing the cost of sales and net realizable value (NRV), apart from inventories with the same classification, FOPCO measures on

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the basis of individual items of inventories. For related accounting policies, please refer to notes 4(5) and 5 for individual financial statements.

As of December 31, 2021, the amount for FOPCO’s in-transit inventory and raw material is NTD 858,498 thousands (refer to note 9), which accounts for 12% of total assets, and 74% of net inventory value for the individual financial statement for December 31, 2021. Of which, its costs and related selling price are influenced by global raw material prices, which is possible for violent fluctuations, and will result in the risk of having the raw material’s NRV lower than the carrying amount. Owing to the regulation for management level’s reference to IAS 2 “inventory” to evaluate the NRV for inventories as mentioned above, there involved estimation and judgment, of which its judgment result directly influenced the recognition of profit and loss amount, it is listed as part of KAMs.

In response to the KAMs mentioned above, the Accountant executed the major audit process as follow:

1. Understand and test FOPCO’s status of execution for its review of estimation for NRV, in order to evaluate its operational efficacy for its internal control system, and to evaluate the appropriateness of its decision method for its NRV, as well as to confirm that the inventory has been calculated by the lower of cost and net realizable value.

2. Obtain latest raw material quotation or sales invoice, etc. through sampling so as to verify that there is no significant inconsistency between the NRV and its reference price, and recalculated its inventory value in order to evaluate the appropriateness of its basis of opinion.

Management Level and Governing Body’s Responsibilities for Financial Statements

The management level’s responsibilities are to prepare appropriately expressed individual financial statements by referring to “Regulations Governing the Preparation of Financial Reports by Securities Issuers,” and to maintain necessary internal control related to the preparation of individual financial statements, so as to confirm that there is no misstatement due to fraud or errors in the individual financial statements.

When preparing individual financial statements, the responsibilities for the management level also include the evaluation of FOPCO’s operating abilities, the disclosure of related matters, and the adoption of going-concern accounting basis. Unless the management level intends to liquidate FOPCO or to terminate business operation, or apart from liquidating or terminating the business operation, there is no other feasible solution.

The governing body of FOPCO (including the Audit Committee) has the responsibility to supervise the financial reporting process.

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Responsibilities for Accountants’ Auditing of Individual Financial Statements

The purpose for the Accountant’s auditing of individual financial statements is to obtain reasonable assurance that whether or not there are any significant misstatements due to fraud or errors in the individual financial statement in general, and to issue an audit report. Reasonable assurance is a high level of assurance. However, there is no guarantee that significant misstatements can be detected by refering to the Generally Accepted Auditing Standards (GAAS) when auditing. Misstatements can be caused by fraud or error. Shall the misstatement for individual amount or aggregate can reasonably predict the future influence of economic decisions made by individual financial statements’ users, it is considered significant.

When the Accountant audits according to the GAAS, the Accountant uses his/her professional judgment and remains professional skepticism. The Accountant also performs the duties as follow:

1. Identify and evaluate the risk of significant misstatements caused by fraud or error in individual financial statements; Design and execute appropriate responding strategies for the evaluated risks; obtain sufficient and appropriate audit evidence as the basis for audit opinion. Since fraud might involve collusion, forgery, intentional omission, false statement, or violations of internal control, the risk of undetected significant misstatements due to fraud is higher than that of error.

2. Acquire necessary understandings for internal control that is related to auditing, so as to design appropriate audit process that are suitable for the situation. However, its purpose is not to express opinion on FOPCO’s efficacy for internal control.

3. Evaluate the appropriateness of accounting policies adopted by the management level, and the reasonableness of its estimatio n and related disclosure as accountant.

4. Based on the obtained audit evidence, to make conclusions on the appropriateness of implementing going concern accounting basis on the management level, and whether or not there are significant uncertainties in matters or circumstances that may cause significant doubts on FOPCO’s going concern abilities. Shall the Accountant believes there exists significant uncertainties in such matters or circumstances, the Accountant shall remind the individual financial statements’ users to pay attention to the individual financial statements’ related disclosure in the audit report, or to amend audit opinion when such disclosure is considered inappropriate. The Accountant’s conclusion is based on the audit evidence obtained as of the date of the audit report. However, future matters or circumstances may result in FOPCO’s no longer having going concern abilities.

5. Evaluate the general expression, structure, and content of individual financial statements (including related notes), as well as whether the individual financial statements appropriately expressed related transactions and matters.

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7. Obtain sufficient and appropriate audit evidence about the individual financial information formed within FOPCO, so as to express opinion about individual financial statements. The Accountant is responsible for the guidance, supervision, and execution of the auditing case, and is also responsible for forming auditing opinion for FOPCO.

The matters being communicated between the Accountant and the governing body include the planning of the range and time for the audit, and significant audit discoveries (including the significant lack of internal control iden tified during the audit process).

The Accountant also provides statements regarding the personals from the firm that the Accountant is affiliated to abide by related independence that complies with the code of ethics for accountants to the governing body. The Accountant communicates with the governing body about all possible relationships that may be considered to influence the accountant’s independence, and other matters (including related protection measures).

The Accountant will decide the KAMs for the audit of FOPCO’s 2021 individual financial statements from the Accountant’s communication wi th the governing body. The Accountant will state such matters in the audit report. Unless regulations disapprove the disclosure of specific matters, or under rare circumstances, the Accountant decides not to communicate about certain matters in the audit report. This is because one can reasonably expect the negative impact that this communication brings is greater than the increased public interests.

Deloitte Touche Tohmatsu Limited Accountant Liao, Wan-Yi Accountant Chen, Zhao-Mei

Financial Supervisory Commission Securities and Futures Commision Approval Approval Number Number No. No. Financial-Supervisory-Securities-A Taiwan-Financial-Securities-VI-09201 uditing-1010028123 23784

March 25, 2022

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Formosa Oilseed Processing Co., Ltd.

Individual Balance Sheets

December 31, 2021 and 2020

Unit: NTD thousands

Code 1100 1136 1150 1160 1170 1180 1200 1210 130X 1410 1479 11XX 1550 1600 1755 1840 1990 15XX 1XXX Code 2100 2110 2150 2170 2180 2219 2230 2280 2320 2399 21XX 2540 2580 2640 2645 2570 25XX 2XXX 3110 3200 3310 3320 3350 3300 3400 3XXX	Asset Current Assets Cash (notes 4 & 6) Financial assets measured at amortized cost (notes 7 & 28) Notes receivable (notes 4, 8, and 20) Notes receivable – related parties (notes 4, 20, & 27) Accounts receivable (notes 4, 8, and 20) Accounts receivable – related parties (notes 4, 20, & 27) Other receivables (notes 4 & 8) Other receivables – related parties (note 27) Inventory (notes 4, 5, & 9) Prepayments (note 10) Other current asset Total current assets Non-current assets Investments by equity method (notes 4 & 11) Property, plant, and equipment (notes 4, 12 & 28) ROU assets (notes 4 & 13) Deferred tax assets (notes 4 & 22) Other non-current assets (note 14) Total non-current assets Total assets Liabilities and Equity Current liabilities Short-term loans (note 15& 28) Short-term notes and bills payables (note 15) Notes payable (note 16) Accounts payable (note 16) Accounts payable – related parties (note 27) Other payables (note 17) Current tax liabilities (notes 4 & 22) Lease liabilities – current (notes 4 & 13) Long-term loans due within one year (notes 4, 15 & 28) Other current liabilities (note 20) Total current liabilities Non-current liabilities Long-term loans (note 4, 15 & 28) Lease liabilities – non-current (notes 4 & 13) Net defined benefit liabilities (notes 4 & 18) Margin deposit Deferred tax liabilities (notes 4 & 22) Total non-current liabilities Total liabilities Equity Ordinary share Capital reserves Retained earnings Statutory retained earnings Special retained earnings Undistributed earnings Total retained earnings Other equity interest Total equity Total liabilities and equity	December31,2021 Amount ％ $ 656,291 10 96,705 2 215,064 3 2,904 - 580,344 8 501,830 7 20,278 - 150,967 2 1,167,541 17 226,537 3 - - 3,618,461 52 1,176,631 17 2,045,329 29 141,112 2 12,972 - 7,132 - 3,383,176 48 $ 7,001,637 100 $ 1,802,755 26 229,908 3 5,036 - 325,404 5 91,979 1 115,115 2 46,269 1 6,750 - 165,000 2 4,942 - 2,793,158 40 515,000 7 136,179 2 18,552 - 1,790 - 96,172 2 767,693 11 3,560,851 51 2,187,030 31 121,705 2 258,304 4 200,454 3 776,742 11 1,235,500 18 ( 103,449) ( 2) 3,440,786 49 $ 7,001,637 100	December31,2021 Amount ％ $ 656,291 10 96,705 2 215,064 3 2,904 - 580,344 8 501,830 7 20,278 - 150,967 2 1,167,541 17 226,537 3 - - 3,618,461 52 1,176,631 17 2,045,329 29 141,112 2 12,972 - 7,132 - 3,383,176 48 $ 7,001,637 100 $ 1,802,755 26 229,908 3 5,036 - 325,404 5 91,979 1 115,115 2 46,269 1 6,750 - 165,000 2 4,942 - 2,793,158 40 515,000 7 136,179 2 18,552 - 1,790 - 96,172 2 767,693 11 3,560,851 51 2,187,030 31 121,705 2 258,304 4 200,454 3 776,742 11 1,235,500 18 ( 103,449) ( 2) 3,440,786 49 $ 7,001,637 100	December31,2020	December31,2020	December31,2020
		Amount $ 656,291 96,705 215,064 2,904 580,344 501,830 20,278 150,967 1,167,541 226,537 - 3,618,461 1,176,631 2,045,329 141,112 12,972 7,132 3,383,176 $ 7,001,637 $ 1,802,755 229,908 5,036 325,404 91,979 115,115 46,269 6,750 165,000 4,942 2,793,158 515,000 136,179 18,552 1,790 96,172 767,693 3,560,851 2,187,030 121,705 258,304 200,454 776,742 1,235,500 ( 103,449) 3,440,786 $ 7,001,637		Amount $ 535,117 - 131,111 3,184 417,427 304,514 30,083 338,227 569,060 194,422 34 2,523,179 1,311,908 1,836,912 63,643 14,732 4,709 3,231,904 $ 5,755,083 $ 771,273 169,786 5,168 201,167 42,787 100,040 51,347 6,998 440,000 1,220 1,789,786 495,000 57,035 19,958 21 95,560 667,574 2,457,360 2,187,030 121,015 220,476 200,454 667,183 1,088,113 ( 98,435) 3,297,723 $ 5,755,083		％
		(	(	(	(	9 - 2 - 7 5 1 6 10 4 - 44 23 32 1 - - 56 100 13 3 - 3 1 2 1 - 8 - 31 9 1 - - 2 12 43 38 2 4 3 12 19 2) 57 100

The notes attached are part of this individual financial statement.

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Formosa Oilseed Processing Co., Ltd.

Individual Statement of Comprehensive Income

January 1 to December 31, 2021 and 2020

Unit: NTD thousands; EPS in NTD

Code Operating revenue (notes 4, 20 & 27) 4110 Sales income 4170 Subtract: sales returns and allowances 4100 Net operating income Operating cost 5110 Cost of sales (notes 9 & 27) 5900 Gross profit 5910 Unrealized profit with subsidiary companies and affiliated enterprises 5950 Realized gross profit Operating expenses (note 27) 6100 Promotion expenses 6200 Management expenses 6300 Development expenses 6450 Expected loss of credit impairment (gain on reversal) (note 8) 6000 Total operating expenses 6510 Other net revenue and expenses (note21) 6900 Net operating profit Non-operating income and expenses 7070 Gains on subsidiary companies and affiliated enterprises, accounted for using equity method (note 4) 7630 Foreign currency exchange net profit (note 21) 7100 Interest income	2021		％ 100 - 100 92 8 - 8 3 1 - - 4 - 4 1 1 -	2020
	Amount $ 9,566,193 15,857 9,550,336 8,763,985 786,351 ( 71) 786,280 248,766 125,809 10,800 60 385,435 217 401,062 116,079 24,277 314			Amount $ 7,022,001 8,900 7,013,101 6,314,707 698,394 ( 310) 698,084 218,843 120,058 9,313 ( 801) 347,413 502 351,173 80,167 14,480 213		％
	(			( (		100 - 100 90 10 - 10 3 2 - - 5 - 5 1 - -

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(Continued)

Code 7110 Rent income (note 27) 7190 Other income (notes 13 & 27) 7510 Interest expense (note 21) 7520 Miscellaneous expense 7000 Total non-operating income and expenses 7900 Profit before tax 7950 Income tax fees (notes 4 & 22) 8200 Net profit Other comprehensive income 8310 Items not reclassified under profit and loss: 8311 Remeasurements of defined benefit plan (notes 4 & 18) 8330 Share of affiliated enterprises’ other comprehensive income, accounted for using equity methods (note 4) 8360 Items that may be reclassified under profit and loss afterwards: 8361 Exchange difference after conversion of foreign operations’ financial statements (note 4) 8300 Total other (net) comprehensive income 8500 Total comprehensive income EPS (note 23) 9710 Basic 9810 Diluted	2021		％ - - - - 2 6 1 5 - - - - - 5	2020
	Amount $ 247 8,052 ( 10,947 ) ( 187) 137,835 538,897 85,785 453,112 1,098 ( 639) 459 ( 5,014) ( 4,555) $ 448,557 $ 2.07 $ 2.07			Amount $ 300 8,220 ( 13,023 ) ( 359) 89,998 441,171 65,414 375,757 877 1,649 2,526 ( 3,231) ( 705) $ 375,052 $ 1.72 $ 1.72		％
				( ( ( (		- - - - 1 6 1 5 - - - - - 5

The notes attached are part of this individual financial statement.

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Unit: NTD thousands; EPS in NTD

Formosa Oilseed Processing Co., Ltd. Individual Statements of Changes in Equity January 1 to December 31, 2021 and 2020

Code A1 January 1, 2020 Balance 2019 Earnings Appropriation and Disposition B1 Legal Reserve B5 Shareholders’ cash dividend – NTD 1.30 per share D1 2020 net profit D3 2020 other comprehensive income D5 2020 total comprehensive income Z1 December 31, 2020 Balance 2020 Earnings Appropriation and Disposition B1 Legal reserve B5 Shareholders’ cash dividend – NTD 1.40 per share C17 Shareholder’s overdue unclaimed dividends D1 2021 net profit D3 2021 other comprehensive income D5 2021 total comprehensive income Z1 December 31, 2021 balance	OrdinaryShares(note	19) Amount $ 2,187,030 - - - - - - 2,187,030 - - - - - - - $ 2,187,030	Capital Surplus (note 19) $ 121,015 - - - - - - 121,015 - - - 690 - - - $ 121,705	Retained Earnings(note 19)	Retained Earnings(note 19)	Unappropriated Retained Earnings $ 605,001 ( 31,787 ) ( 284,314) ( 316,101) 375,757 ( 2,526) 378,283 667,183 ( 37,828 ) ( 306,184) ( 344,012) - 453,112 459 453,571 $ 776,742	Other Equity
							Exchange difference converted in foreign operating institutions’ financial statements ( $ 95,204 ) - - - - ( 3,231) ( 3,231) ( 98,435) - - - - - ( 5,014)) ( 5,014) ($ 103,449)	Total Equity
	No. of Shares (1000) 218,703 - - - - - - 218,703 - - - - - - - 218,703			Legal Reserve $ 188,689 31,787 - 31,787 - - - 220,476 37,828 - 37,828 - - - - $ 258,304	Special Reserve $ 200,454 - - - - - - 200,454 - - - - - - - $ 200,454
						( ( ( ( ( ( (	( ( ( ( ( ( (	( ( ( ( ( (	$ 3,206,985 - 284,314) 284,314) 375,757 705) 375,052 3,297,723 - 306,184) 306,184) 690 453,112 4,555) 448,557 $3,440,786
									$

The notes attached are part of this individual financial statement.

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Formosa Oilseed Processing Co., Ltd. Individual Statements of Cash Flows

January 1 to December 31, 2021 and 2020

Unit: NTD thousands

Code Cash flows for operating activities A10000 Profit before tax A20010 Profit and loss items A20100 Depreciation expense A20200 Amortization expense A20300 Expected loss of credit impairment (gain on reversal) A20900 Interest expense A21200 Interest income A22300 Gain on subsidiary companies and affiliated enterprises accounted for using equity method A22500 Gain on disposal of property, plant, and equipment t A29900 Gain on disposal of ROU assets A23700 Inventory falling price loss A23900 Unrealized sales profit with subsidiary companies and affiliated enterprises A30000 Net change in operating assets and liabilities A31130 Notes receivable A31140 Notes receivable – related parties A31150 Accounts receivable A31160 Accounts receivable – related parties A31180 Other receivables A31190 Other receivables – related parties A31200 Inventory A31230 Prepayments A31240 Other current assets A32130 Notes payable A32150 Accounts payable A32160 Accounts payable – related parties A32180 Other payables A32190 Other payables – related parties A32230 Other current liabilities A32240 Net defined benefit liabilities A33000 Cash from operating activities A33100 Interest income		2021 $ 538,897 29,357 999 60 10,947 314 ) 116,079 ) 217 ) - 672 71 83,953 ) 280 163,055 ) 197,316 ) 9,814 337,590 599,153 ) 32,115 ) 34 132 ) 124,237 49,192 12,923 - 3,722 308) 73,847 ) 175		2020
	( ( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( ( (	$ 441,171 33,555 999 801 ) 13,023 213 ) 80,167 ) 452 ) 50 ) - 310 23,571 ) 340 1,441 6,387 2,236 162 ) 95,493 255 2 358 ) 61,912 11,376 ) 19,946 21 ) 127 ) 245) 559,527 192

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(Continued)

Code A33300 Interest expenses A33500 Tax expenses AAAA Net cash inflow (outflow) from operating activities Investment cash flows B00040 Financial assets gained at amortized cost B00050 Disposal of financial assets at amortized cost B02700 Obtainment of property, plant, and equipment (note 24) B02800 Disposal of property, plant, and equipment cost B03700 Increase of guarantee deposits paid B06700 Decrease (increase) of other non-current assets B07500 Interest income B07600 Dividend gained from subsidiary companies and affiliated enterprises BBBB Net investment cash flow expenses Financing activities cash flows C00100 Increase (decrease) of short-term loans C00500 Increase of short-term notes payable C01600 Long-term loans C01700 Repayment of long-term loans C03000 Increase of margin deposit C04020 Repayment of lease liabilities principal C04500 Issuance of cash dividend C05700 Shareholder’s overdue unclaimed dividends CCCC Net cash (out)flows on financing activities DDDD Impact owing to fluctuation in exchange EEEE Net increase in cash E00100 BOY cash balance E00200 Year-end cash balance	2021 ( $ 10,275 ) ( 88,491) ( 172,438) ( 96,705 ) - ( 228,072 ) - ( 2,543 ) ( 1,113 ) 130 95,521 ( 232,782) 1,031,482 60,000 405,000 ( 660,000 ) 1,769 ( 6,441 ) ( 306,184 ) 690 526,316 78 121,174 535,117 $ 656,291	2020
		( $ 14,895 ) ( 51,901) 492,923 - 154,763 ( 386,398 ) 1,525 ( 363 ) 3 20 104,639 ( 125,811) ( 96,086 ) 170,000 97,500 ( 232,500 ) 21 ( 8,432 ) ( 284,314 ) - ( 353,811) 3,202 16,503 518,614 $ 535,117

The notes attached are part of this individual financial statement.

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Formosa Oilseed Processing Co., Ltd.

Notes for Individual Financial Statements

January 1 to December 31, 2021 and 2020

(Unless stated otherwise, the amounts’ unit is in NTD thousands)

I. Company’s History

Formosa Oilseed Processing Company Co., Ltd. (hereafter referred to as “the Company”) was established in 1986. Since September 1993, the Company’s share has been listed for transaction on Taiwan Stock Exchange. Our main businesses include the manufacturing and the selling of soybean oil, soy flour, flour, oatmeal, corn, pet food, and import and export transactions. The Company’s subsidiary company “Top Food Industry Corporation” (Top Food) started to operate since October 2007, and its main business includes producing and selling flour. Thus, the Company no longer engages in the production of flour. This individual financial statement is expressed in the Company’s functional currency New Taiwan Dollars (NTD).

• II. Date of Approval and Procedures for Financial Report This individual financial report was approved by the board of

• directors on March 25, 2022.

• III. Application of Newly Announced Standards for Amendments and Explanations

• (1) First time applicable of International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), International Financial Reporting Interpretations Committee (IFRIC), and Standing Interpretation Committee (SICs) (hereafter referred to as IFRSs) as approved and announced effective by the Financial Supervisory Commission (hereafter referred to as FSC). Newly Announced ／ Amended ／ Amendments & Effective Date for IFRIC Announcement of IASB ~~Amendments to IFRS 9, IAS 39, and IFRS 7, IFRS~~ Jan 1, 2021 4, & IFRS 16 “interest rate benchmark reform – Phase II” Amendments to IFRS 16 “Covid-19-Related Rent Jan 1, 2021 Concessions after June 30, 2021”

The application of the IFRSs as approved and announced effective by the FSC will not necessarily cause significant changes in the Company’s accounting policies.

(2) The Application of the IFRSs as Approved by the FSC for 2022 Newly Announced ／ Amended ／ Amendments & Effective Date for IFRIC Announcement of IASB “Annual Improvements – 2018-2020 Cycle” Jan 1, 2022 (note 1) Amendments to IFRS 3 “definition of a business” Jan 1, 2022 (note 2) Amendments to IAS 16 “Property, Plant and Jan 1, 2022 (note 3) Equipment — Proceeds before Intended Use”

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Newly Announced ／ Amended ／ Amendments & Effective Date for IFRIC Announcement of IASB Amendments to IAS 37 “Onerous Contracts — Cost Jan 1, 2022 (note 4) of Fulfilling a Contract”

• Note 1: The amendments to IFRS 9 are applicable to financial liabilities or change of provisions that happen during the annual reporting period after January 1, 2022; the amendments to IAS 41 on “Agriculture” are applicable to fair value measurements during the annual reporting period after January 1, 2022; the amendments to IFRS 1 on “First-Time Adoption of IFRSs” are traced back and applicable to the annual reporting period after January 1, 2022.

• Note 2: This amendment is applicable to business mergers of which the acquisition date is during the annual reporting period after January 1, 2022.

• Note 3: This amendment is applicable to property, plant, and equipment of which their operating methods’ necessary locations and status meet the management level’s expectations after Janua ry 1, 2021.

• Note 4: This amendment is applicable to contracts of which all obligations are not yet fulfilled by January 1, 2022.

As of the date of announcement of the approval of this individual financial statement, the Company’s estimation criteria and the amendments to IFRIC will not necessarily cause significant impact on the Company’s financial status and financial performance.

• (3) IFRSs Announced by the International Accounting Standards Board (IASB) but Not Yet Approved by the FSC

Effective Date for Newly Announced ／ Amended ／ Amendment(s) & Announcement of IASB IFRIC (note 1) Amendments to IFRS 10 and IAS 28, “Sale or Undecided Contribution of Assets Between an Investor and Its Associate or Joint Venture” Amendments to IFRS 17, “Insurance Contracts” Jan 1, 2023 Amendments to IFRS 17 Jan 1, 2023 Amendments to IFRS 17 “Initial Application of IFRS Jan 1, 2023 17 and IFRS 9―Comparative Information” Amendments to IAS 1, “Classification of Liabilities Jan 1, 2023 as Current or Non-Current” Amendments to IAS 1, “Disclosure of Accounting Jan 1, 2023 (note 2) Policies” Amendments to IAS 8, “Definition of Accounting Jan 1, 2023 (note 3)

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Effective Date for Newly Announced ／ Amended ／ Amendment(s) & Announcement of IASB IFRIC (note 1) Estimates” Amendments to IAS 12, “Deferred Tax related to Jan 1, 2023 (note 4) Assets and Liabilities arising from a Single Transaction Note 1: Unless noted otherwise, the above-mentioned newly announced/amended/amendment or IFRICs are effective during the annual reporting period after the respective dates. Note 2: This amendment is applicable to prospective during the annual reporting period after January 1, 2023. Note 3: This amendment is applicable to changes in accounting estimates and changes in accounting policies during the annual reporting period after January 1, 2023. Note 4: This amendment is applicable to transactions occurring after January 1, 2022, except for the recognition of deferred tax on temporary differences in lease and decommissioning obligations occurring on January 1, 2022.

As of the announcement date for the approval of this individual financial report, the Company still continues to evaluate the impacts that the amendments of standards and IFRICs have caused on the Company’s financial status and financial performance. Related impacts will be disclosed when the evaluation is completed.

IV. Statement for Summaries for Significant Accounting Policies

• (1) Compliance Assertion

This individual financial statement was prepared by referring to the “Regulations Governing the Preparation of Financial Reports by Securities Issuers.”

• (2) Preparation Basis

Except for the net defined benefit liabilities accounted for using the present value for defined benefit obligation subtracting planned assets at fair value, this individual financial statement was prepared on the basis of historical cost.

When preparing individual financial statements, the Company handles invested subsidiary companies and affiliated enterprises by using equity methods. In order to have this individual financi al statements’ current year profit and loss, other comprehensive income, and equity the same as the Company’s consolidated financial statements’ current year profit and loss, other comprehensive income, and equity as belonging to the Company’s owner(s), the accountants’ handling of differences under individual basis and consolidated basis was to adjust “investments accounted for using equity method,” “gains on subsidiary companies and affiliated enterprises accounted for using equity method,” and “share of other comprehensive income of affiliated enterprises accounted for using equity method” and related equity items.

• (3) Standards for Distinguishing Current and Non-Current Assets and Liabilities

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Current assets include:

1. Assets possessed mainly for transaction purposes;

2. Assets expected to be realized within 12 months after the date of balance sheet; and

3. Cash (but excluding those restricted to the exchange or settlement of liabilities for more than 12 months after the date of balance sheet).

Current liabilities include:

1. Liabilities possessed mainly for transaction purposes;

2. Liabilities at maturity for settlement within 12 months after the date of balance sheet; and

3. Liabilities of which its settlement period cannot be unconditionally deferred to at least 12 months after the date of balance sheet.

Those that do not belong to the above-mentioned current assets or current liabilities are classified under non-current assets or non-current liabilities.

• (4) Foreign Currencies

When preparing individual financial statements, the Company, transactions made other than the Company’s functional (foreign) currency are converted into the Company’s functional currency for recording by referring to the exchange rate on the date of transaction.

The monetary items in foreign currencies are converted at the closing exchange rage on every date of balance sheet. The exchange difference generated from settling monetary items or converting monetary items will be recognized as the current year’s profit or loss.

Non-monetary items in foreign currencies measured at fair value are converted at the exchange rate on the day of determining the fair value, and the exchange difference generated is recognized as the current year’s profit or loss. However, for items that belong to the changes in fair value and recognized as other comprehensive income, their exchange difference generated will be recognized as other comprehensive income.

Non-monetary items in foreign currencies measured at historical cost are converted at the exchange rate on the date of transaction, and will not be reconverted.

When preparing the individual financial statement, foreign operating institutions’ (including the country of operation or subsidiary companies that use different currencies from the Company) assets and liabilities are converted to NTD at the exchange rate on every date of balance sheet. The income and expense items are converted at the average exchange rate for the current year, and the exchange difference generated is recognized as other comprehensive income.

• (5) Inventory

Inventories include (in transit) raw materials, materials, finished goods, work in progress, and products. Inventories are measured at lower of cost and NRV. When comparing the cost and the NRV, apart from inventories with the same classification, the Company measures on the basis of individual items of inventories. NRV refers to the balance after subtracting the estimated cost that still needs to be

• 16 -

invested until completion and the estimated cost to complete the sell from the estimated selling price under normal circumstances. Inventory cost is calculated by using weighted average method.

• (6) Investments in Subsidiary Companies

The Company uses equity method to deal with its investments in subsidiary companies. Subsidiary companies refer to entities that the Company has control over.

Under the equity method, investments were originally recognized as costs, the increase or decrease of the carrying amount after the obtained date varies according to the Company’s profit or loss owing to its subsidiary companies and the share of other comprehensive income, as well as profit distribution of profit. Moreover, the Company’s benefits in subsidiary companies’ changes in equity are recognized according to its shareholding ratio.

When the Company evaluates its impairment loss, it takes into account of the individual financial statements as a whole to consider cash generating units, and compares its recoverable amount and carrying amount. If the recoverable amount of assets increa ses afterwards, the reversal of impairment loss will be recognized as gains. However, the carrying amount for assets after impairment loss reversal cannot exceed the assets’ carrying amount after subtracting the amortization that should be recognized if impairment loss is not recognized.

The Company and subsidiary companies’ unrealized profits and losses for downstream transactions are eliminated from individual financial reports. The profits or losses from the Company and subsidiary companies’ upstream transactions are solely within the range that is unrelated to the Company’s equity in the subsidiary companies, and are recognized in individual financial reports.

• (7) Investments in Affiliated Enterprises

Affiliated enterprises are enterprises that have significant influences on the Company, but do not belong to subsidiary companies or joint ventures. The Company conducts the equity method in investing in affiliated enterprises.

Under the equity method, the investments in affiliated enterprises are originally recognized as costs, and the carrying amount obtained in the future will increase or decrease according to the Company’s benefits from the affiliated enterprises’ income and other comprehensive income, and profit distribution. In addition, the Company’s benefit in affiliated enterprises’ changes in equity is recognized according to its shareholding ratio.

If the Company does not subscribe according to its shareholding ratio when affiliated enterprises issue new shares, and causes changes in shareholding ratio, and further results in the decrease or increase of invested equity net value, the Company increases or decreases the amount to adjust its capital surplus and investments accounted for using equity method. If the aforementioned adjustment should debit capital surplus, and the capital surplus balance from investment

• 17 -

accounted for using equity method is insufficient, its difference should be recognized as retained earnings under the debit column.

When the Company evaluates its impairment loss, it regards the overall carrying amount of the investment as a single asset, and compares recoverable amounts with the carrying amount to perform the impairment test. The recognized impairment loss is not allocated to any assets that form parts of the investment’s carrying amount, including goodwill. Any impairment loss reversals can be recognized within the range of subsequent increases in such investment’s recoverable amount. The profits or losses from upstream and downstream transactions between the Company and the affiliated enterprises are solely within the range that is unrelated to the Company’s equity in the affiliated enterprises, and are recognized in individual financial reports.

(8) Property, Plant, and Equipment

Property, plant, and equipment are recognized as costs, of which the amount will later be measured by cost subtracting accumulated depreciation.

Property, plant, and equipment’s significant parts were separately depreciated within the useful life using the straightline method. The Company scans the estimation of useful life, residual value, and depreciation method at least on the last day of every year, and postpones the impact of changes in applicable accounting estimations. When property, plant, and equipment are derecognized, the difference between the net disposal proceeds and such asset’s carrying amount is recognized as profit or loss.

(9) Property, Plant, and Equipment, and ROU Assets’ Impairment Loss

The Company evaluates whether there are any traces showing possible impairments in property, plant, and equipment, and ROU assets on every date of balance sheet. If any impairment traces exist, the Company will estimate such asset’s recoverable amount. If it is impossible to estimate individual asset’s recoverable amount, the Company estimates the recoverable amount of the cash generating unit to which such asset belongs.

Recoverable amount is calculated by the higher of fair value subtracting sales cost and its use value. When individual assets or the recoverable amount of the cash generating unit is lower than its carrying amount, such asset or the carrying amount of the cash generating unit is reduced to its recoverable amount, and the impairment loss is recognized under profit or loss.

When impairment loss is subsequently reversed, the carrying amount for such assets or cash generating unit are increased to the recoverable amount after being adjusted. However, the carrying amount after the increase shall not exceed the carrying amount (minus depreciation) determined if such assets or cash-generating unit did not recognize impairment loss in the previous years. The reversal of impairment loss is recognized as profit or loss.

(10) Financial Instruments

• 18 -

When financial assets and financial liabilities become one of the contractual regulations for such instrument of the Company, they are recognized in individual balance sheets.

When originally recognizing financial assets and financial liabilities, if financial assets or financial liabilities do not belong to those measured at fair value through profit or loss, then it is measured by fair value plus financial costs directly attributed to the obtainment or distribution of financial assets or financial liabilities. The transaction costs directly attributed to the obtainment or distribution of financial assets or financial liabilities at fair value through profit or loss shall be recognized as profit or loss immediately.

1. Financial assets

The regular way purchase or sale of financial assets adopts accounting recognition and derecognition on the trade date.

• (1) Types of measurements

The types of financial assets that the Company possesses are financial assets at amortized cost, and investments in equity instrument at fair value through other comprehensive income.

If the Company’s investments of financial assets simultaneously meet the two conditions below, then it is categorized as financial assets measured at amortized cost:

A. it is held under a certain business model, and the purpose for such model is to obtain contractual cash flow by holding financial assets; and

B. the cash flow generated on the specific date of contractual regulations, and such cash flow is completely used for principal payment and the interest for outstanding capital.

After the original recognition of financial assets at amortized cost (including cash, notes receivable at amortized cost, accounts receivable, and other receivables), they are measured by the carrying amount determined by effective interest method subtracting any impairment loss after amortized cost. Any profit or loss owing to foreign currency exchange is recognized as profit or loss.

Except for the two conditions below, interest income is calculated by multiplying effective interest rate and financial assets’ total carrying amount:

• A. Credit-impaired financial assets purchased or created, and the interest income is calculated by multiplying effective interest rate after credit adjustment by financial assets after amortized cost.

• B. Financial assets that do not belong to purchased or created credit impairment, but subsequently become credit impairment, and the interest income is calculated by multiplying effective interest rate by financial assets after amortized cost.

• 19 -

(2) Impairment loss of financial assets The Company assesses its financial assets after amortized cost (including notes receivable and accounts receivable) based on expected credit loss on every date of balance sheet.

Notes receivable and accounts receivable should both be recognized as allowance loss based on the expected credit loss during the duration. Other financial assets are first assessed by whether there is a significant increase in credit risks after the original recognition. If there is no significant increase, then the recognition of allowance loss is based on 12 months’ expected credit loss. If there is a significant increase, then the recognition of allowance loss is based on the expected credit loss during the duration.

Expected credit loss is a weighted average credit loss with the risk of default as the weight. The 12 months expected credit loss represents the expected credit loss that is caused by possible default events within the 12 months after the reporting date of the financial instrument. Expected credit loss during the duration represents the expected credit loss caused by the financial instrument’s possible default events during the duration.

All carrying amount for financial assets’ impairment loss are reduced through the allowance account.

(3) Derecognition of financial assets

The Company’s financial assets can only be derecognized when the contractual rights from financial assets cash flows become invalid, or when the financial assets have been transferred and almost all risks and rewards for such assets’ ownership have been transferred to other enterprises.

When the financial assets measured after amortized cost is entirely derecognized, the carrying amount and the difference between the considerations received are recognized as profit or loss. When the equity instrument investments at fair value through other comprehensive income are entirely derecognized, the accumulated profit or loss are directly transferred to retained earnings, and will not be re-classified as profit or loss.

1. Financial liabilities

2. (1) Subsequent measurements

Financial liabilities are measured at amortized cost accounted for using the effective interest method.

(2) Derecognition of financial liabilities

When derecognizing financial liabilities, the carrying amount and difference between consideration payments (including any transferred non-cash assets or assumed liabilities) are recognized as profit or loss.

(11) Provisions

Amounts recognized as provisions are to consider obligatory risks and uncertainties, and are the best estimate for the required expen se to settle the obligation on the date of balance sheet.

• 20 -

(12) Recognition of income

After the Company identifies performance obligations in customer contracts, it will amortize transaction prices to each performance obligation, and will recognize as income once each performance obligation is fulfilled.

Sales income from goods

The sales income from goods is from the selling of oil, feeds, raw materials, etc.

When oil, feeds, and raw materials, etc. arrives the customers’ designated location/starts shipment, the customers already have the rights to set up prices and the rights to use, and have the main responsibility to re-sale these products. They also have to take the risk for the outdating of goods. The Company recognizes its income and accounts receivable at this point of time.

During processing, the significant risk and rewards of the ownership to the processed products are not yet transferred, and will not be handled for selling when processing.

• (13) Lease

The Company evaluates whether the contract belongs to (or includes) lease on the contract establishment date.

1. The Company as the lessor

When the lease clause transfers almost all risks and rewards attached to the ownership of the asset to the lessee, it is classified as financing lease. All other leases are classified as operating lease.

Under operating lease, the lease payments are recognized as income on the straight-line basis during related lease periods. Original direct costs happened because of the obtainment of operating lease is added to the target assets’ carrying amount, and recognized as expense on the straight-line basis during the lease period.

1. The Company as the lessee

Except for low-value asset lease that is applicable to recognition exemption, and lease payments for short-term lease that are based on the straight-line basis recognized as expenses during the lease period, other leases are all recognized as ROU assets and lease liabilities on the lease starting date.

ROU assets are originally measured by costs (including lease liabilities’ original measured amount, lease payment before the lease starting date subtracting lease incentives, original direct cost, and estimated cost of restored assets), and subsequently measured by the amount of the cost subtracting accumulated depreciation and accumulated impairment loss, and adjusts the remeasurements of lease liabilities. ROU assets are separately expressed in the individual balance sheet.

ROU assets’ depreciation is pre-estimated on a straight-line basis from the lease starting date until the expiration of the useful life whichever is earlier.

• 21 -

Lease liabilities are originally measured by the lease payment’s current value (including regular payments). If the interest rate implicit in a lease is easy to determine, the lease payments are discounted with this interest rate. If such interest rate is not easy to determine, then the lessee’s increment borrowing interest rate will be used.

Subsequently, lease liabilities are measured by effective interest method after amortized cost, and the interest expense is amortized during the lease period. If the lease period or changes in the rate that is used to determine lease payments result in changes of future lease payments, the Company will remeasure lease liabilities, and relatively adjust ROU assets. However, if the carrying amount for ROU assets decreases to zero, then the remaining remeasured amount will be recognized as profit or loss. Lease liabilities are separately expressed in the individual balance sheet.

The Company and the lessor underwent rent negotiations directly related to Covid-19, and adjusted the rent due before June 30, 2020 that resulted in the decrease of rent. Such negotiation did not cause significant changes in other lease clauses. The Company chose to adopt practical expedient to handle all lease negotiations that meet the aforementioned condition. The Company did not evaluate whether such negotiation was about lease amendments. Instead, the Company recognized the deduction of lease payments as profit or loss (pre-estimated as other income) when concession events or situations happen, and relatively reduced lease liabilities.

• (14) Borrowing Costs

The borrowing costs directly attributed to the acquisition, construction, or production of qualified assets are part of such assets cost, until almost all necessary activities for such assets to reach its intended usage or selling status have been completed.

Except for the aforementioned, all other borrowing costs are recognized as profit or loss in the current period.

(15) Employees’ Benefit 1. Short-term employees’ benefit

Related liabilities for short-term employees’ benefit is measured at non-discounted cash amount prepaid for the exchange of employee services.

1. Post-employment benefit

The pension of the defined allocation retirement plan should be allocated and the pension amount should be recognized as expense when the employee provides his/her service period.

Defined benefit retirement plan’s defined benefit cost (including service costs, net interest, and remeasurements) is precisely calculated by adopting the projected unit credit method. Service costs (including current period’s service cost) and net interest of net defined benefit liability should be recognized as employee’s benefit expense when the events happen, and when settlements happen. Remeasurements (including precisely

• 22 -

calculated profit or loss and planned assets rewards interest deduction) should be recognized as other comprehensive income and listed under retained earnings when the event happens, and will not be re-classified as profit or loss in the subsequent period. Net defined benefit liability is allocation insufficiency of defined benefit retirement plan. Net defined benefit assets cannot exceed the present value for the returned allocated amount from such plan or reducible future allocated amount.

(16) Income Tax Income tax amount is the total of current income tax and deferred income tax.

1. Current income tax

The Company determines its current income (loss) according to regulations formulated by jurisdictions for income tax reporting, based on the calculation of payable (recoverable) income tax. According to the R.O.C. Income Tax Act, the calculation of the added income tax to undistributed earnings will be recognized in the year of decision of the shareholder’s meeting.

The adjustment for income tax payables for the previous years is listed in the current year’s income tax.

1. Deferred income tax

Deferred income tax is calculated based on the temporary difference between booked assets and the carrying amount for liabilities, and the tax basis for calculating taxable income.

Deferred income tax liabilities are generally recognized as all taxable temporary differences, and deferred income tax assets are recognized when it is likely to have taxable income for usage of the deduction of temporary differences.

Taxable temporary differences related to invested subsidiary companies are all recognized as deferred income tax liabilities. Deductible temporary differences related to this type of investment can be recognized as deferred income tax assets only if it is likely to have sufficient taxable income to achieve temporary differences, and within the range expected to reverse in the foreseeable future.

The carrying amount for deferred income tax assets is reviewed on every date of balance sheet, and the carrying amount is reduced for those that are no longer likely to have sufficient taxable income for the recovery of all or partial assets. For those that is not originally recognized as deferred income tax assets, they should be reviewed on every date of balance sheet, too, and the carrying amount is increased for those that are very likely to generate taxable income for the recovery or all or partial assets.

Deferred income tax assets and liabilities are measured by its expected liability settlement or tax rate for assets realization. Such tax rate is based on the tax rate and tax law that have been enacted or substantively enacted on the date of balance sheet. The measurements of deferred income tax liabilities and assets are to reflect the Company’s tax outcome generated from the method of

• 23 -

expected recovery or settlement of its carrying amount for assets and liabilities on the date of balance sheet.

• V. Main Sources for Significant Accounting Judgment and Estimation, and Hypothesis of Uncertainties

• When the Company adopts accounting policies, the management

• level must make related judgments, estimations, and hypothesis on the basis of historical experience and other relevant factors when obtaining relevant information that is not easily obtained from other sources. The actual results may differ from the estimation.

• The management level will continue to review the estimation and the

• basic hypothesis. If the amendments to the estimation solely impact the current year, then it is recognized in the current year; if the amendments to the accounting estimation simultaneously influence the current year and future periods, then it is recognized in the current period of amendment and the future period.

• The information for the main management level’s hyp othesis and

• estimation uncertainties is as follow:

Impairment of Inventories

In-transit inventories and raw material costs and related prices are influenced by global raw material prices, which is possible for volatile fluctuations, leading to risk of the raw materials’ NRV falling below than the carrying amount. Since the management level referred to the regulations in IAS 2 “Inventory,” for the evaluation of raw materials’ NRV involves estimation and judgment, the change in raw material prices might cause significant impacts on such estimation results.

• VI. Cash

Cash
Cash on hand & petty cash Bank checks & demand deposit	December 31,2021 $ 141 656,150 $ 656,291	December 31,2020
			$ 198 534,919 $ 535,117

The market interest rate range for bank deposits on the date of balance sheet is as follow:

balance sheet is as follow:	balance sheet is as follow:
December 31,2021 Bank deposit 0.01%～0.05% Financial assets measured at amortized cost December 31,2021 Current Restricted assets – bank deposit $ 96,705		December 31,2020
		0.01%～0.12% December 31,2020
Current Restricted assets – bank deposit
			$ -

• VII. Financial assets measured at amortized cost

• 24 -

The market interest rate range for financial assets measured at amortized cost on the date of balance sheet is as follow: December 31, 2021 December 31, 2020 Restricted assets – bank deposit 0.18% -

Restricted assets – bank deposits are provided to the bank(s) as guarantee for loans, and as pledge information. Please refer to note 28.

VIII. Notes Receivable, Accounts Receivable, and Other Receivables

Notes Receivable Total carrying amount measured at amortized cost Accounts Receivable Total carrying amount measured at amortized cost Subtract: loss allowance Other Receivables Export rebate receivable Import price difference receivable Judgment lien amount Others	December 31,2021 $ 215,064 $ 580,558 214 $ 580,344 $ 12,402 7,627 - 249 $ 20,278	December 31,2020	December 31,2020
			$ 131,111
			$ 417,581 154 $ 417,427 $ 11,975 - $ 17,593 515 $ 30,083

(1) Notes Receivable

The average credit period for the Company’s product sales is 60 days, of which no interest is accrued in notes receivable. The policy that the Company adopts is to only make transactions with reputable parties, and the Company will obtain full collateral when necessary, so as to reduce the risk of financial loss owing to delinquency. The Company rates its main customers by using other publicly available financial information and historical transaction records. The Company continuously supervises credit exposures and the counterparties’ credit levels, and distributes the total transaction amount to different customers with qualified credit ratings. Moreover, the Company manages its credit exposures by reviewing and approving the credit limit of counterparties each year.

The Company’s expected credit loss during duration is recognized as notes receivable’s allowance loss. The expected credit

• 25 -

loss during duration is calculated by provision matrix, which takes the customers’ past default records and current financial statuses, and industrial economy situations into account. At the same time, the Company takes GDP prediction and industrial prospects into consideration. The Company’s historical experience for credit loss shows that there is no significant difference in loss patterns among different customer groups. Thus, the provision matrix did not further distinguish customer groups, and only determined the expected credit loss rate based on the numbers of days overdue for notes receivable. If there is evidence showing that the counterparty is facing critical financial difficulties, and the Company is unable to reasonably expect the recoverable amount, the Company should directly write off related notes receivable. However, the Company will continuously recourse the activities, and the recovered amount from the recourse will be recognized as profit or loss.

The Company uses provision matrix to measure notes receivable’s allowance loss, which is as follow:

December 31, 2021

December 31, 2021
Expected credit loss rate Total carrying amount Allowance loss (expected credit loss during duration) Amortized cost	Not overdue
		0% $ 215,064 - $ 215,064

December 31, 2020

December 31, 2020
Expected credit loss rate Total carrying amount Allowance loss (expected credit loss during duration) Amortized cost	Not overdue
		0% $ 131,111 - $ 131,111

• (2) Accounts Receivable

The Company’s average credit period for product sales is 80 days, of which no interest is accrued in accounts receivable. The policy that the Company adopts is to only make transactions with reputable targets, and the Company will obtain full collateral when necessary so as to reduce the risk of financial loss owing to delinquency. The Company rates its main customers by using other publicly available financial information and historical transaction records. The Company continuously supervises credit exposures and the counterparties’ credit levels, and distributes the total transaction amount to different customers with qualified credit ratings. Moreover, the Company

• 26 -

manages its credit exposures by reviewing and approving the credi t limit of counterparties each year.

The Company’s expected credit loss during duration is recognized as notes receivable’s allowance loss. The expected credit loss during duration is calculated by provision matrix, which takes the customers’ past default records and current financial statuses, and industrial economy situations into account. At the same time, the Company takes GDP prediction and industrial prospects into consideration. The Company’s historical experience for credit loss shows that there is no significant difference in loss patterns among different customer groups. Thus, the provision matrix did not further distinguish customer groups, and only determined the expected credit loss rate based on the numbers of days overdue for notes receivable. If there is evidence showing that the counterparty is facing critical financial difficulties, and the Company is unable to reasonably expect the recoverable amount, the Company should directly write off related notes receivable. However, the Company will continuously recourse the activities, and the recovered amount from the recourse will be recognized as profit or loss.

The Company uses provision matrix to measure accounts receivable’s allowance loss, which is as follow: December 31, 2021

Expected credit loss rate Total carrying amount Loss allowance (expected credit loss during duration) Amortized cost December		Not overdue		1-60 days overdue		61-90 days overdue		91-120days overdue		121-180 days overdue		181-365 days overdue	O	ver 365 days overdue		Total
				.47%-7.83% $ 7,767 102) $ 7,665 1-60 days overdue	(	18.56% $ 36 7) $ 29 61-90 days overdue		- $ - - $ - 91-120days overdue		- $ - - $ - 121-180 days overdue		- $ - - $ - 181-365 days overdue	( O	100% $ 48 48) $ - ver 365 days overdue	(	$ 580,558 214) $ 580,344 Total
Expected credit loss rate Total carrying amount Loss allowance (expected credit loss during duration) Amortized cost		Not overdue
	(	0.01% $ 412,137 41) $ 412,096	0 (	.25%-4.10% $ 5,384 53) $ 5,331		- $ - - $ -		- $ - - $ -		- $ - - $ -		- $ - - $ -	(	100% $ 60 60) $ -	(	$ 417,581 154) $ 417,427

Changes in information on accounts receivable loss allowance are as follow:

as follow:
BOY balance Add: current year provision impairment loss Subtract: current year reversal impairment loss Year-end balance	December 31, 2021 $ 154 60 - $ 214	December 31, 2020
		(	$ 955 - 801) $ 154

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(3) Other Receivables

After the court’s judgment, the remaining amount of NTD 17,593 thousands retained by the court was returned to the Company on March 15, 2021.

When the Company assesses Other Receivables with objective evidence of impairment loss, the amount of impairment loss is individually assessed. As of the balance sheet date, there are no Other Receivables past due that the Company has not yet recognized in Other Receivables loss allowance.

IX. Inventory

Inventory
Inventory in-transit Raw materials Finished goods Work in progress Materials	December 31,2021 $ 619,855 238,643 219,659 82,254 7,130 $ 1,167,541	December 31,2020
			$ 276,118 142,390 125,920 17,808 6,824 $ 569,060

Operating costs related to inventory for the year 2021 was NTD 8,763,985 thousands, of which NTD 3,030 thousands included was inventory loss and NTD 672 thousands was loss on inventory price decline Operating costs related to inventory for the year 2020 was NTD 6,314,707 thousands, of which NTD 667 thousands included was inventory loss.

X. Prepayments

inventory loss. Prepayments
Excess business tax paid Other prepayments Prepayments to suppliers	December 31,2021 $ 204,756 21,500 281 $ 226,537	December 31,2020
			$ 178,489 15,498 435 $ 194,422

XI. Investments by Using Equity Method

Investments in subsidiary companies Investments in affiliated enterprises	December 31,2021 $ 892,360 284,271 $ 1,176,631	December 31,2020	December 31,2020
			$ 1,036,984 274,924 $ 1,311,908

(1) Investments in subsidiary companies

TOP FOOD FORMOSA OIL PROCESSING (PANAMA) S.A. FU YOU AN KANG CORP.	December 31,2021 $ 687,580 145,157 30,436	December 31,2020
		$ 691,836 294,392 31,748

• 28 -

CHONG HSIANG FOODS INDUSTRY CO., LTD.	29,187 $ 892,360	19,008 $ 1,036,984

Name of SubsidiaryCompanies TOP FOOD FORMOSA OIL PROCESSING (PANAMA) S.A. FU YOU AN KANG CORP. CHONG HSIANG FOODS	Ownership Interests and Voting Rights Percentage	Ownership Interests and Voting Rights Percentage
	December 31,2021 63% 100% 51% 100%	December 31,2020
		63% 100% 51% 100%

Share of subsidiary companies’ profit or loss and other comprehensive income, accounted for using equity method for 2021 and 2020, were recognized in each subsidiary company’s financial statements as audited by accountants during the same period.

(2) Investments in affiliated enterprises

December 31, 2021 December 31, 2020 Affiliated enterprises with significance CENTRAL UNION OIL CORP. $ 284,271 $ 274,924

The Company’s equity-holding percentage in affiliated enterprises on the date of balance sheet is as follow:

Name of Company CENTRAL UNION OIL CORP.	December 31,2021 33.33%	December 31,2020
		33.33%

For the aforementioned affiliated enterprises’ information regarding their business nature, major places of operation, and the companies’ registered country, please refer to Attached Table 4 “Related Information Regarding Names of Invested Companies and Location, etc.”

Investments accounted for using equity method, profits or losses from the Company, and shares on other comprehensive income are recognized according to the affiliated enterprises’ financial reports audited by accountants during the same period.

The Company measures the aforementioned affiliated enterprises by using the equity method.

The summarized financial information below was prepared on the basis of the affiliated enterprises’ IFRSs financial statements, and had already reflected the adjustments made when using the equity method.

• 29 -

Central Union Oil Corp.

	Central Union Oil Corp.
XII.	Current assets Non-current assets Current liabilities Non-current liabilities Equity The Company’s shareholding ratio The Company’s equity Unrealized gains (losses) on downstream transactions Carrying amount for investments Operating income Current year’s net profit Other comprehensive income Total comprehensive income Dividend obtained from Central Union Oil Corp. Property, Plant, and Equipment	December 31,2021 $ 1,199,495 1,476,098 ( 1,544,683 ) ( 275,966) $ 854,944 33.33% $ 284,981 ( 710) $ 284,271 2021 $ 10,069,733 $ 126,053 ( 1,916) $ 124,137 $ 32,000	December 31,2020 $ 928,508 1,505,335 ( 1,239,013 ) ( 368,023) $ 826,807 33.33% $ 275,602 ( 678) $ 274,924 2020
		(		$ 7,172,390 $ 118,982 4,948 $ 123,930 $ 24,000

Other comprehensive income Total comprehensive income Dividend obtained from Central Union Oil Corp. Property, Plant, and Equipment	( 1,916) $ 124,137 $ 32,000	4,948 $ 123,930 $ 24,000	4,948 $ 123,930 $ 24,000
Land Buildings Machinery equipment Transport equipment Experimental equipment Other equipment Unfinished projects	December 31,2021 $ 715,940 43,110 22,151 7,969 3,682 21,098 1,231,379 $ 2,045,329	December 31,2020
			$ 715,940 47,875 25,775 8,048 4,737 22,620 1,011,917 $ 1,836,912

							Machinery	Machinery			Transport		Experimental	Experimental			Other	Unfinished	Unfinished
		Land			Buildings		equipment			equipment			equipment			equipment			projects		Total
Cost
Jan 1, 2021 balance	$	715,940		$	246,234		$	362,358		$	23,692		$	17,784		$	229,082	$	1,011,917		$ 2,607,007
Addition		-			-			3,235			1,736			36			5,439		219,462		229,908
Disposal		-	(		255)	(		25,909)			-	(		382)	(		8,284)		-	(	34,830)
Dec 31, 2021 balance		715,940			245,979			339,684			25,428			17,438			226,237		1,231,379		2,802,085
Accumulated Depreciation
Jan 1, 2021 balance		-	(		198,359 )	(		336,583 )	(		15,644 )	(		13,047 )	(		206,462 )		-	(	770,095 )
Disposal		-			255			25,909			-			382			8,282		-		34,828
Depreciation expense		-	(		4,765)	(		6,859)	(		1,815)	(		1,091)	(		6,959)		-	(	21,489)
Dec 31, 2021 balance		-	(		202,869)	(		317,533)	(		17,459)	(		13,756)	(		205,139)		-	(	756,756)
Dec 31, 2021 net amount	$	715,940		$	43,110		$	22,151		$	7,969		$	3,682		$	21,098	$	1,231,379		$ 2,045,329
Cost
Jan 1, 2020 balance	$	715,940		$	243,876		$	360,358		$	23,692		$	16,349		$	229,974	$	620,562		$ 2,210,751
Addition		-			2,358			2,000			-			1,505			3,038		391,355		400,256
Disposal		-			-			-			-	(		70)	(		3,930)		-	(	4,000)
Dec 31, 2020 balance		715,940			246,234			362,358			23,692			17,784			229,082		1,011,917		2,607,007
Accumulated Depreciation
Jan 1, 2020 balance		-	(		193,823 )	(		327,485 )	(		13,892 )	(		12,099 )	(		200,736 )		-	(	748,035 )
Disposal		-			-			-			-			70			2,638		-		2,708
Depreciation expense		-	(		4,536)	(		9,098)	(		1,752)	(		1,018)	(		8,364)		-	(	24,768)
Dec 31, 2020 balance		-	(		198,359)	(		336,583)	(		15,644)	(		13,047)	(		206,462)		-	(	770,095)
Dec 31, 2020 net amount	$	715,940		$	47,875		$	25,775		$	8,048		$	4,737		$	22,620	$	1,011,917		$ 1,836,912

• 30 -

The unfinished project is mainly the Company’s rendering plant for purifying edible oil that is still under construction at the Taichung Harbor area.

Since there is no trace of any impairment in 2021 and 2020, the Company did not perform impairment evaluation.

The depreciation expenses are calculated by using the straightline method according to the useful life as follow:

Buildings
Plant’s main building	5 to 55 years
Project systems	5 to 40 years
Machinery equipment	2 to 24 years
Transport equipment	3 to 14 years
Experimental equipment	2 to 11 years
Other equipment	2 to 24 years

XIII. Leasing Agreement

(1) ROU assets

ROU assets
ROU assets carrying amount Land Buildings Transport equipment Increase of ROU assets Depreciation expense for ROU assets Land Buildings Transport equipment	December 31,2021 $ 132,859 1,484 6,769 $ 141,112 2021 $ 85,337 $ 3,241 456 4,171 $ 7,868	December 31,2020
			$ 55,482 1,940 6,221 $ 63,643 2020
			$ 930 $ 3,427 885 4,475 $ 8,787

Except for the above-mentioned additions (including adjustments to accounting estimates) and recognized depreciation expenses, there was no significant sublease or impairment of the ROU assets of the Company in the years 2021 and 2020.

• (2) Lease liabilities

Lease liabilities
Lease liabilities carrying amount Current Non-current	December 31,2021 $ 6,750 $ 136,179	December 31,2020
			$ 6,998 $ 57,035

• 31 -

Discount rate range for lease liabilities is as follow:

Land Buildings Transport equipment	December 31,2021 1.08%～1.38% 1.38% 1.08%～1.38%	December 31,2020
		1.38% 1.38% 1.08%～1.38%

• (3) Significant Rental Activities and Clauses

The parent company signed a land lease contract for leasing the port industry professionalism development zone with Taiwan International Ports Corporation, Ltd. – Port of Taichung Branch (hereafter referred to as Port Branch) in November 2017 in order to construct and operate the palm oil plant. The lease period is 20 years. According to contractual regulations, the properties and movable properties, and property ownerships financed and constructed by the parent company all belong to the parent company. During the duration of the contract, the parent company should calculate the land rent based on the area of the leased land according to the land value announced by the government and the approved annual rent rate, and pay the management fee according to the amount committed to the Port Branch. When the lease period is terminated, the parent company does not have the right of preferential refusal towards the leased land. The aforementioned lease period of the land use right asset was originally calculated based on the 20-year lease term of the land lease contract signed with the Port Branch, and it was expected to produce only a single oil product. In response to future product line diversification and quality improvement, more complete refining equipment has already been purchased, and the parent company's oil and fat factory in Dadu District, Taichung will also be relocated to this development area. According to the parent company's evaluation of the Taichung Port Plant's operation plan, the Taichung Port Plant will aim for 50 years as its operation target. The parent company will apply in writing to the Taichung Port Branch to continue the lease one year before the expiration of the lease term. Therefore, the calculation of the lease period of the land use right has been adjusted in July, 2021 to 50 years, and the ROU assets and lease liabilities have been adjusted to increase by NTD 80,618 thousands. This was approved by the Audit Committee and the Board of Directors on August 10, 2021.

Owing to the serious impact that the Covid-19 pandemic has had on the market economy in 2020, when the Company negotiated with the auxiliary ports of Taiwan International Ports Corporation Ltd. regarding the terms of the land lease, the auxiliary ports agreed to unconditionally lower 10% of the rental amount from January 1, 2020 to June 30, 2020. The Company recognized the aforementioned rent concessions impact NTD 159 thousands in the year 2020 (listed as other income).

• 32 -

(4) Other Leasing Information

Other Leasing Information
Short-term leasing fees Low value assets leasing fees Total leasing cash (outflow)		2021 $ 137 $ 469 $ 8,260)		2020
	(		(	$ 116 $ 495 $ 10,009)

The Company chooses to recognize the renting of business premises and transport equipment that conform to short-term lease and low value lease, as the Company will not recognize such leases as related ROU assets and lease liabilities.

XIV. Other Non-Current Assets

Other Non-Current Assets
Guarantee deposits paid Other prepayments Prepayments for equipment	December 31,2021 $ 6,906 121 105 $ 7,132	December 31,2020
			$ 4,363 7 339 $ 4,709

XV. Loans

• (1) Short-term loans

Short-term loans
Secured loans Bank loans (note 28) Unsecured loans Credit loans Letter of credit loans	December 31,2021 $ 85,000 1,672,448 45,307 1,717,755 $ 1,802,755	December 31,2020
			$ - 613,210 158,063 771,273 $ 771,273

The interest rate range for short-term loans on the date of balance sheet is as follow:

s follow:
Secured loans Bank loans Unsecured loans Credit loans Letter of credit loans	December 31,2021 0.65% 0.81%～1.10% 0.73%～1.00%	December 31,2020
		- 0.81%～1.15% 0.72%～0.96%

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• (2) Short-term notes payable

Short-term notes payable
Commercial papers payable Subtract: short-term notes discount payable	December 31, 2021 $ 230,000 92 $ 229,908	December 31, 2020
			$ 170,000 214 $ 169,786

The market interest rate range for short-term notes payable on the date of balance sheet is as follows:

of balance sheet is as follows:
Unsecured loans	December 31,2021 0.96%	December 31,2020
		0.98%~0.99%

Short-term notes payable that have not met the maturity date yet: December 31, 2021

Guarantee／Acceptance institutions Commercial papers payable Ta Ching Bills Finance Corporation Taiwan Cooperative Bills Finance Corporation Mega Bills		Parprice $ 100,000 100,000 30,000 $ 230,000		Discount amount $ 52 20 20 $ 92		Carrying amount $ 99,948 99,980 29,980 $ 229,908	Pledge or collateral
							None None None

December 31, 2020

Guarantee／Acceptance institutions Commercial papers payable Ta Ching Bills Finance Corporation Taiwan Cooperative Bills Finance Corporation Mega Bills		Parprice $ 80,000 70,000 20,000 $ 170,000		Discount amount $ 188 19 7 $ 214		Carrying amount $ 79,812 69,981 19,993 $ 169,786	Pledge or collateral
							None None None

• (3) The details for the Company’s long-term loans are as follow:

Secured loan E.SUN Commercial Bank Unsecured loan Taishin International Bank Taiwan Cooperative Bank	December 31, 2021 $ 300,000 140,000 100,000	December 31, 2020
		$ 420,000 150,000 100,000

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Mega International Commercial Bank Shin Kong Bank Chang Hwa Bank Bank of Panhsin Shanghai Commercial and Savings Bank Bank of Kaohsiung Land Bank of Taiwan Subtotal Subtract: listed as the part that is due within one year Long-term loan	70,000 25,000 20,000 12,500 12,500 - - 680,000 165,000 $ 515,000	30,000 - 60,000 62,500 62,500 30,000 20,000 935,000 440,000 $ 495,000

The interest rate range for the Company’s loans is as follow:

December 31, 2021 December 31, 2020 Floating interest rate loans 1.08% ～ 1.25% 1.08% ～ 1.33%

1. E.SUN Commercial Bank’s secured loan: the first installment of the loan principal was repaid in August 2019. Every 6 months is 1 installment. The loan will be evenly amortized in 10 installm ents. As of December 31, 2021 and 2020, the loan balances were respectively NTD 300,000 thousands and NTD 420,000 thousands. The Company offered its plant and land in Dadu District, Taichung City as such line of credit’s collateral.

2. Taishin International Bank’s mid-term loan: according to contract regulations, the loan principal can be used as revolving loan within the financing limit from the first draw date of the loan principal in June 2019 until 2021 before the maturity date. The Company has extended the contract to July 2023. The longest period for each loan cannot exceed 180 days, and the amount drawn this time shall be settled on the maturity date for the loan principal. However, the loan principal can be applied for revolved drawing according to contract regulations, and there is no need for additional procedures for the principal’s transfer in/out. As of December 31, 2021 and 2020, the loan balance was respectively NTD 140,000 thousands and NTD 150,000 thousands.

3. Taiwan Cooperative Bank’s mid-term loan: The settlement of the amount employed this time reached the 24[th] month since March 2020, the draw date of the loan principal. The contract was extended in February 2021 and the settlement of the amount employed this time reached the 24[th] month since March 2021, the draw date of the loan principal. As of December 31, 2021 and 2020, the loan balances were both NTD 100,000 thousands.

4. Mega International Commercial Bank’s mid-term loan: According to contract regulations, the original loan principal can be u sed as revolving loan within the financing limit from first draw date of the loan principal in March 2020 until July 2022 before the maturity date and there is no need for additional procedures for

5. 35 -

the principal’s transfer in/out. The longest period for each loan cannot exceed 180 days, and the amount drawn this time shall be settled on the maturity date for the loan principal. The Company extended the contract to July 2024. As of December 31, 2021 and 2020, the loan balance was NTD 70,000 thousands and NTD 30,000 thousands.

1. Shin Kong Bank’s mid-term loan: According to contract regulations, the loan principal can be used as revolving loan within the financing limit from the first draw date of the loan principal in December 2021 until April 2024 before the maturity date and there is no need for additional procedures for the principal’s transfer in/out. The longest period for each loan cannot exceed 180 days, and the amount drawn this time shall be settled on the maturity date for the loan principal. As of December 31, 2021, the loan balance was NTD 25,000 thousands.

2. Chang Hwa Bank’s mid-term loan: since the first draw date of the loan principal in March 2019, every 6 months is 1 installment, and the loan will be evenly amortized in 6 installments. As of December 31, 2021 and 2020, the loan balance was respectively NTD 10,000 thousands and NTD 30,000 thousands. Another NTD 40,000 thousands was drawn in April 2020. The first installment of the loan principal was repaid in September 2020. Every 6 months is 1 installment. The loan will be evenly amortized in 4 installments. As of December 31, 2021 and 2020, the loan balance was respectively NTD 10,000 thousands and NTD 30,000 thousands.

3. Bank of Panhsin’s mid-term loan: the first installment of loan principal was originally repaid in April 2020. Every 3 months is 1 installment. The loan will be evenly amortized in 8 installments. As of December 31, 2021 and 2020, the loan balance was respectively NTD 5,000 thousands and NTD 25,000 thousands. Another NTD 45,000 thousands was drawn in February 2020. The first installment of the loan principal was repaid in October 2020. Every 3 months is 1 installment. The loan will be evenly amortized in 6 installments. As of December 31, 2021 and 2020, the loan balance was respectively NTD 7,500 thousands and NTD 37,500 thousands.

4. Shanghai Commercial and Savings Bank’s mid-term loan: the first installment of the loan principal was repaid in June 2020. Every 3 months is 1 installment. The loan will be evenly amortized in 8 installments. As of December 31, 2021 and 2020, the loan balance was respectively NTD 12,500 thousands and NTD 62,500 thousands.

5. Bank of Kaohsiung’s mid-term loan: the loan principal was originally paid off at once on the maturity date in February 2022. The loan principal can be used as revolving loan within the financing limit until February 2023 before the maturity date and there is no need for additional procedures for the principal’s transfer in/out. The longest period for each loan cannot exceed 180 days, and the amount drawn this time shall be settled on the

6. 36 -

maturity date for the loan principal. As of December 31, 2020, the loan balance was NTD 30,000 thousands. As of December 31, 2021, no funds were drawn.

1. Land Bank of Taiwan’s mid-term loan: according to contract regulations, the loan principal can be used as revolving loan within the financing limit from first draw date of the loan principal in June 2019 until June 2022 before the maturity date. The longest period for each loan cannot exceed 90 days, and the amount drawn this time shall be settled on the maturity date for the loan principal. However, the loan principal can be applied for revolved drawing according to contract regulations, and there is no need for additional procedures for the principal’s transfer in/out. As of December 31, 2020, the loan balance was NTD 20,000 thousands. As of December 31, 2021, no funds were drawn.

XVI. Notes Payable and Accounts Payable

Notes payable Incurred by business operations Accounts payable Incurred by business operations	December 31,2021 $ 5,036 $ 325,404	December 31,2020	December 31,2020
			$ 5,168 $ 201,167

• (1) Notes payable

The Company’s notes payable are mainly notes issued for the payment of freight incurred by business operations.

• (2) Accounts payable

The average credit period is 60 days. The Company’s financial risk management policy ensures that all accounts payable are repaid within the prearranged credit period.

XVII. Other Payables

Other Payables
Salaries and bonuses payable Equipment payable Import and export expenses payable Freight payable Labor and health insurance payable Interests payable Other	December 31,2021 $ 75,774 13,441 8,274 6,972 2,424 1,190 7,040 $ 115,115	December 31,2020
			$ 64,926 11,839 7,170 6,600 2,207 640 6,658 $ 100,040

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XVIII. Welfare Benefit Plan after Retirement (1) Defined allocation plan

The pension system in the “Labor Pension Act” that is applicable to the Company belongs to defined pension allocation plan under the government’s management. 6% of the employee’s monthly salary is allocated to the employee’s Labor Insurance Bureau personal account as the employee’s pension.

• (2) Defined welfare benefit plan

The “Labor Standards Act” that the Company refers to in handling pension system belongs to defined welfare benefit pension plan under the government’s management. The payment of the employee’s pension is based on the employees’ years of service and the employee’s average salary of the 6 months prior to the approved retirement date. The Company allocates 8% of the employee’s monthly salary to his/her pension, and is submitted to the Supervisory Committee of Business Entities’ Labor Retirement Reserve to deposit into Bank of Taiwan’s imprest account in the name of the committee. Before the year ends, if the estimated imprest balance is insufficient to pay estimated employees that fulfill retirement conditions in the following year, the difference should be allocated at once before the end of March in the following year. Such imprest account is managed by the Bureau of Labor Funds, Ministry of Labor. The Company has no right in influencing its investment management strategies.

Amounts for defined benefit plan that are listed in the individual balance sheet are as follow:

balance sheet are as follow:
PV for defined benefit obligation Planned assets fair value Allocation insufficiency Net defined benefit liabilities	December 31,2021 $ 81,458 ( 62,906) 18,552 $ 18,552	December 31,2020
	(	(	$ 85,619 65,661) 19,958 $ 19,958

Changes in net defined benefit liabilities are as follow:

Jan 1, 2020 Service cost Current service cost Interest expenses (income) Recognized as profit or loss	PV for defined benefit obligation $ 84,168 760 631 1,391	Planned assets fair value ($ 63,088) - ( 478) ( 478)	Net defined benefit liabilities	Net defined benefit liabilities
		( ( (		$ 21,080 760 153 913

(next page)

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(con’t)

Remeasurements Gains on planned assets Actuarial loss (profit) －Changes in financial assumptions －Experience adjustment Recognized as other comprehensive income Allocated by employer Payment of benefits December 31, 2020 January 1, 2021 Service cost Current service cost Interest expenses (income) Recognized as profit or loss Remeasurements Gains on planned assets Actuarial loss (profit) －Changes in demographic assumptions －Changes in financial assumptions －Experience adjustment Recognized as other comprehensive income Allocated by employer Payment of benefits December 31, 2021	PV for defined benefit obligation - 2,565 ( 1,225) 1,340 - ( 1,280) $ 85,619 $ 85,619 721 321 1,042 - 1,455 ( 757 ) ( 889) ( 191) - ( 5,012) $ 81,458	Planned assets fair value ( 2,217 ) - - ( 2,217) ( 1,158) 1,280 ($ 65,661) ($ 65,661) - ( 248) ( 248) ( 907 ) - - - ( 907) ( 1,102) 5,012 ($ 62,906)	Net defined benefit liabilities
			( 2,217 ) 2,565 ( 1,225) ( 877) ( 1,158) - $ 19,958 $ 19,958 721 73 794 ( 907 ) 1,455 ( 757 ) ( 889) ( 1,098) ( 1,102) - $ 18,552

The amounts recognized as profit or loss for the defined benefit plan are summarized according to their functions as follow:

Operating costs Promotion expense Management expense		2021 $ 117 231 446 $ 794		2020
				$ 187 248 478 $ 913

• 39 -

The Company is exposed to the risks below owing to the pension system of the “Labor Standards Act”:

1. Investment risks: through methods of self-application or discretionary management, the Bureau of Labor Funds, Ministry of Labor invests labors’ pension funds in domestic and foreign equity securities, debt securities, and bank deposits, and other objects. However, the amount that can be distributed under the Company’s planned assets is the income that is calculated by not being lower than the local banks’ two-year time deposit rate.

2. Interest risks: the decrease of interest rates in government bonds/corporate bonds will result in the increase in the present value for defined benefit obligation. However, the debts of planned assets’ return on investments will increase accordingly, too. Both have partial offset effects on net defined benefit liabilities.

3. Salary risks: the calculation of the present value for defined benefit obligations refers to planned members’ future salary. Therefore, the increase in planned members’ salary will result in the increase in the present value for defined benefit obligations.

The Company’s actuarial calculation for the PV for defined benefit obligations is performed by certified actuaries. The measurement date’s major assumptions are as follow:

Discount rate Salary’s expected increase rate	December 31, 2021 0.500% 2.500%	December 31, 2020
		0.375% 2.500%

If the major actuarial assumptions are respectively subjected to possible reasonable changes, under the circumstance that other assumptions remain unchanged, the amounts that will result in the increase (decrease) of the PV for defined benefit obligations are as follow:

follow:
Discount rate 0.25% increase 0.25% decrease Salary’s expected increase rate 0.25% increase 0.25% decrease	December 31, 2021 ($ 1,503) $ 1,549 $ 1,493 ($ 1,457)	December 31, 2020
	( (	( (	$ 1,724) $ 1,778 $ 1,711 $ 1,668)

Since actuarial assumptions may be interrelated, it is unlikely for changes in single assumption only. Thus, the aforementioned sensitivity analysis may not reflect the situation of the changes in the present value for defined benefit obligations.

December 31, 2021 December 31, 2020

Amount expected to be allocated within 1 year $ 1,081 $ 1,158 Defined benefit obligation’s average maturity period 7.4 years 8.1 years

• 40 -

XIX. Equity

• (1) Share Capital

Common Stock

Common Stock
Authorized number of shares (1000) Authorized share capital Number of shares issued and fully collected (1000) Issued share capital	December 31,2021 300,000 $ 3,000,000 218,703 $ 2,187,030	December 31,2020
			300,000 $ 3,000,000 218,703 $ 2,187,030

The nominal amount per common share is NTD 10. Each share has one voting right and the right to receive dividends.

• (2) Capital Reserves

Capital Reserves
Can be used to compensate for losses, distribute cash, or share capitalization Issuance of premium Can only be used to compensate for losses Shareholders’ overdue unclaimed dividends	December 31,2021 $ 121,015 690 $ 121,705	December 31,2020
			$ 121,015 - $ 121,015

In the capital reserve, those that belong to the overage of the issuance of shares in excess of the par and the gifts of assets donated to the business can be used to compensate for losses. They can also be used to issue cash dividend or to capitalize share capital when the company breaks even. However, when capitalizing share capital, it is limited to a certain ratio of the actual received share capital each year.

• (3) Reserved Earnings and Dividend Policies

According to the Company’s bylaws regarding the regulations in the earnings distribution policy, if there are earnings in the final account, another 10% is withdrawn as earnings reserve after tax payments and the compensation for losses. The rest will be listed as or reversed to special earnings surplus according to regulations. If there is still balance, together with accumulated undistributed earnings, the board of directors will draft a proposal regarding the distribution of earnings, and submit it to the shareholders meeting for the decision of the distribution of shareholders’ dividends and bonus. For policies regarding distribution of employees and directors’ remunerations

• 41 -

according to the clause in the Company’s bylaws, please refer to note 21-3 “Employees’ Remunerations and Directors’ Remunerations.” The Company’s policy regarding the distribution of dividends is based on the principle to maintain the soundness of the company’s long-term financial structure and the growth and expansion of future operations, to distribute share dividends so as to retain the funds needed, and the rest can be distributed as cash dividends. However, cash dividends cannot be less than 10% of total dividends. If there is 0.1 NTD short of the distribution of cash dividend per share, then no cash dividend will be distributed.

Statutory earnings reserve should be allocated until its balance reaches the company’s actual received total share capital. Statutory earnings reserve can be used to compensate losses. When the company has no loss, except for the part that the statutory earnings reserve exceeds 25% of the actual received total share capital can be used to allocate the share capital, it is still available to be distributed in cash. The Company hosted the regular shareholders’ meeting on July 29, 2021 and June 24, 2020, and respectively decided the approval of 2020 and 2019 earnings distribution proposal as follow:

Earnings Distribution Project Dividend per Share (NTD)

Pre-estimated statutory earnings surplus Cash dividend	2020 $ 37,828 306,184	2019 $ 31,787 284,314	2020 $ 1.40	2019
				$ 1.30

The Company’s proposal for 2021 earnings distribution by the

board of directors on March 25, 2022 is as follow:

Statutory earnings surplus Cash dividend	Earnings Distribution Plan $ 45,357 349,925	Dividend per Share (NTD)
		$ 1.60

Regarding 2021’s earnings distribution plan, it is expected to be decided on June 23, 2022 at the annual general meeting (AGM).

(4) Special Earnings Surplus

Since it is the Company’s first time using IFRSs and the increase in reserved earnings generated is insufficient for pre-estimation. Thus, the sole increase in reserved earnings generated by converse -using IFRSs NTD 200,454 thousands can pre-estimate special earnings surplus.

XX. Income

surplus. Income
Customer contract income Goods sales income		2021 $ 9,550,336		2020
				$ 7,013,101

• 42 -

• (1) Customer Contract Description

Goods Sales Income

Products such as oil, feeds, and raw materials, etc. are sold to wholesalers and retailers, and are sold according to the fixed price in the contract. The income amount is measured at received consideration or consideration receivable’s fair value.

(2) Contract balance

Contract balance
Notes receivable Notes receivable – related parties Accounts receivable Accounts receivable – related parties Contractual liabilities (listed in other current liabilities) Selling of goods	December 31, 2021 $ 215,064 2,904 580,344 501,830 $ 1,300,142 $ 3,440	December 31, 2020 $ 131,111 3,184 417,427 304,514 $ 856,236 $ -	January1,2020
				$ 107,540 3,524 418,067 310,901 $ 840,032 $ -

Changes in contract liabilities are mainly from the difference between the time point of the fulfilment of performance obligations and the time point of customers’ payments.

(3) Customer contracts that are not all complete yet

(3) Customer contracts that are not	all complete yet
Selling of products －Executed in 2022 XXI. Net Profit	December 31,2021 $ 3,440	December 31,2020
			$ -

• (1) Depreciation and Amortization

Depreciation and Amortization
Depreciation expenses summarized according to its functions Operating costs Operating expenses Amortization expenses summarized according to its functions Operating costs		2021 $ 14,198 15,159 $ 29,357 $ 999		2020
				$ 18,187 15,368 $ 33,555 $ 999

• 43 -

• (2) Employees’ benefit expenses

Employees’ benefit expenses
Post-employment benefits Defined contribution plans Defined benefit plans (note 18) Salary expenses Labor and health insurance expenses Directors’ remunerations Other employee benefits Summarized according to its functions Operating costs Operating expenses		2021 $ 6,517 794 7,311 176,399 15,598 12,992 8,167 $ 220,467 $ 59,381 161,086 $ 220,467		2020
				$ 6,460 913 7,373 176,023 14,185 11,112 7,502 $ 216,195 $ 59,416 156,779 $ 216,195

(3) Employees’ Remunerations and Directors’ Remunerations According to the clause in the Company’s bylaws, the Company refers to the current year’s pre-tax profit before deducting the distribution of employees’ remunerations and directors’ remunerations, and allocates respectively 2%-4% and not higher than 4% from employees’ remuneration and directors’ remuneration. The employees’ remuneration and directors’ remuneration for 2021 and 2020 were decided by the board of directors on March 25, 2022 and March 25, 2021 respectively as follow:

Estimated Percentage

Estimated Percentage
Employees’ remunerations Directors’ remunerations Amount Employees’ remunerations Directors’ remunerations	2021 2% 2% 2021 Cash $ 11,227 11,227	2020
		2% 2% 2020
		Cash
		$ 9,191 9,191

If there are still changes in the amount after the annual individual financial statements’ issuance date, it will be handled as changes in accounting estimates, and will be adjusted and entered into account in the following year.

There is no difference between the actual distributed amount for employees’ remuneration and directors’ remuneration for 2020 and

• 44 -

2019 and the individual financial statements’ recognized amount for 2020 and 2019.

For information regarding the Company’s employees’ remuneration and directors’ remuneration as decided by the board of directors, please search on the Taiwan Stock Exchange’s Market Observation Post System.

• (4) Other Earnings and Impairment Loss Net Value

Disposal of gains on ROU assets Disposal of gains on property, plant and equipment		2021 $ - 217 $ 217		2020
				$ 50 452 $ 502

The disposal of gains on property, plant and equipment in 2021 is the sum of the current year’s disposal of loss NTD 2 thousands and recognized realized deferred income NTD 219 thousands. The disposal of gains on property, plant and equipment in 2020 is the sum of the current year’s disposal of profit NTD 233 thousands and recognized realized deferred income NTD 219 thousands.

• (5) Currency Exchange Profit (Loss)

Total currency exchange profit Total currency exchange loss Net profit		2021 $ 45,919 21,642) $ 24,277		2020
	(		(	$ 24,710 10,230) $ 14,480

• (6) Interest Expense

Interest Expense
2021 Bank loan interest $ 9,734 Lease liability interest 1,213 $ 10,947 Related information on interest capitalization is 2021 Interest capitalization amount $ 12,506 Interest capitalization rate 1.16%~1.19%		2020
	$ 12,057 966 $ 13,023 as follow: 2020
	$ 9,623 1.16%~1.40%

XXII. Income Tax

• (1) Income tax recognized as profit or loss

The main items of the income tax is as follow:

Current income tax Generated in the current year Adjustments made in the	2021 $ 83,413 -	2020
		$ 74,290 ( 1,369 )

• 45 -

previous years Deferred income tax Generated in the current year Income tax expense recognized as profit or loss The reconciling of accounting follow: Net profit before tax Income tax expense calculated based on statutory tax rate for net profit before tax Tax-free income Non-deductible impairment loss in taxes Unrecognized deductible temporary difference Current income tax expenses in the previous years adjusted in the current year Income tax expense recognized as profit or loss	2,372 ( 7,507) $ 85,785 $ 65,414 income and income tax expense is as 2021 2020 $ 538,897 $ 441,171 $ 107,779 $ 88,234 ( 21,994 ) ( 23,167 ) - 8 - 1,708 - ( 1,369) $ 85,785 $ 65,414	2,372 ( 7,507) $ 85,785 $ 65,414 income and income tax expense is as 2021 2020 $ 538,897 $ 441,171 $ 107,779 $ 88,234 ( 21,994 ) ( 23,167 ) - 8 - 1,708 - ( 1,369) $ 85,785 $ 65,414
		$ 441,171 $ 88,234 ( 23,167 ) 8 1,708 ( 1,369) $ 65,414

The reconciling of accounting income and income tax expense is as follow:

• (2) Current income tax liabilities

Current income tax liabilities
Current income tax liabilities Income tax payable	December 31, 2021 $ 46,269	December 31, 2020
			$ 51,347

• (3) Deferred income tax assets and liabilities

Changes in deferred income tax assets and liabilities are as follow:

2021

2021
Deferred income tax assets Temporary difference Loss on investment accounted for using equity method Pension expense overrun Deferred income Loss on inventory price decline Other	BOY balance $ 11,467 2,056 453 39 717 $ 14,732	Recognized as profit/loss ( $ 1,222 ) ( 61 ) ( 44 ) 134 ( 567) ($ 1,760)		Year-end balance
				$ 10,245 1,995 409 173 150 $ 12,972

Deferred income tax liabilities

Temporary difference

• 46 -

Land value increment tax Other 2020 Deferred income tax assets Temporary difference Loss on investment accounted for using equity method Pension expense overrun Deferred income Loss on inventory price decline Other Deferred income tax liabilities Temporary difference Land value increment tax	$ 95,560 - $ 95,560 BOY balance $ 4,333 2,105 497 216 74 $ 7,225 $ 95,560	$ - 612 $ 612 Recognized as profit/loss $ 7,134 ( 49 ) ( 44 ) ( 177 ) 643 $ 7,507 $ -		$ 95,560 612 $ 96,172 Year-end balance
				$ 11,467 2,056 453 39 717 $ 14,732 $ 95,560

2020

• (4) Income tax verification status

Regarding the Company’s business income tax declaration, the declared cases as of before 2019 were authorized by tax collecting institutions.

XXIII. Earnings per Share (EPS)

Net profit and the number of shares of the common share’s weighted average for the calculation of EPS is as follow:

Net profit

Net profit
Net profit used for the calculation of basic and diluted EPS Number of Shares Number of shares of common share’s weighted average used for the calculation of basic EPS Impacts of potential common share with dilutive effect: Employees’ remuneration Number of shares of common share’s weighted average used for the calculation of diluted EPS		2021 $ 453,112 2021 218,703 270 218,973

• 47 -

If the Company can choose to distribute employees’ remuneration by share or by cash, then when the Company calculates its diluted EPS, under the hypothesis that the employees’ remuneration is distributed by share, the calculation of diluted EPS is to include the number of weighted average outstanding shares when such potential common share has dilutive effect. When calculating diluted EPS before deciding the number of shares distributed as the employees’ remuneration in the following year, the Company still needs to consider such potential common share’s dilutive effect.

XXIV. Cash Flow Information

• (1) Partial cash transaction

The partial cash transactional investments that the Company conducted in 2021 and 2020 are as follow:

Partial cash paid to purchase property, plant and equipment Purchase of property, plant, and equipment Net change in prepayment of equipment Net change in equipment payable Cash paid	2021 $ 229,908 ( 234 ) ( 1,602) $ 228,072	2020
		$ 400,256 ( 2,019 ) ( 11,839) $ 386,398

• (2) Changes in liabilities owing to financing activities

2021

2021
Short-term loans Short-term notes payable Long-term loans and long-term loans due within one year Margin deposit Lease liability		BOY balance $ 771,273 169,786 935,000 21 64,033 $ 1,940,113	Cash flow $ 1,031,482 60,000 ( 255,000 ) 1,769 ( 6,441) $ 831,810			Non-cash changes	Amortized interest expense $ - 122 - - - $ 122		Year-end balance
					New lease liabilities $ - - - - 85,337 $ 85,337	Reduced lease liabilities $ - - - - - $ -
									$ 1,802,755 229,908 680,000 1,790 142,929 $ 2,857,382

2020

2020
Short-term loans Short-term notes payable Long-term loans and long-term loans due within one year Margin deposit Lease liability		BOY balance $ 867,359 - 1,070,000 - 77,087 $ 2,014,446	Cash flow ( $ 96,086 ) 170,000 ( 135,000 ) 21 ( 8,432) ($ 69,497)			Non-cash changes	Amortized interest expense $ - ( 214 ) - - - ($ 214)		Year-end balance
					New lease liabilities $ - - - - 930 $ 930	Reduced lease liabilities $ - - - - ( 5,552) ($ 5,552)
						( (			$ 771,273 169,786 935,000 21 64,033 $ 1,940,113

• 48 -

XXV. Capital Risk Management

The Company conducts capital management so as to optimize its debts and equity balance in order to maximize shareholders’ compensation under the circumstance that the Company is ensured to continue to operate.

XXVI. Financial Instrument

• (1) Information regarding fair value – financial instruments that are not measured at fair value

• The Company’s management level believes that the carrying

• amount for financial assets and financial liabilities that are not measured at fair value is close to its fair value, or that its fair value cannot be measured reliably.

• (2) Types of financial instruments

cannot be measured reliably. Types of financial instruments
Financial assets Measured at amortized cost (note 1) Financial liabilities Measured at amortized cost (note 2)	December 31,2021 $ 2,224,383 3,174,423	December 31,2020
		$ 1,759,663 2,160,295

• Note 1: the balance is financial assets that includes cash, financial instrument measured at amortized cost, notes receivable, notes receivable – related parties, accounts receivable, accounts receivable – related parties, other receivables, and other receivables – related parties, etc., measured at amortized cost.

• Note 2: the balance is financial liabilities that include short-term loans, short-term notes payable, notes payable, accounts payable, accounts payable – related parties, partial other payables, and long-term loans (including parts due within one year), etc., measured at amortized cost.

• (3) Purpose and policy for financial risk management

The Company’s major financial instruments include accounts receivable, accounts payable, loans, lease liabilities, etc. The Company’s financial management department supervises and manages financial risks related to the Company’s operation by referring to the degree and width of risks to analyze internal risk reports for risk exposures. Such risks include market risks (including exchange rate risks and interest rate risks), credit risks, and current risks.

1. Market risks

The main financial risks that the Company bears for operating activities are risks in foreign currency exchange rate changes and risks in interest rate changes.

The Company’s risk exposure related to financial instrument’s market risk and its management and measurement methods for such risk exposure did not change.

• 49 -

(1) Exchange rate risks

For the Company’s monetary assets and monetary liabilities’ carrying amount denominated as non-functional currencies on the date of balance sheet, please refer to note 30.

Sensitivity analysis

The Company is mainly influenced by the fluctuation in the exchange rate for US dollars.

The table below describes in detail of the Company’s sensitivity analysis when the exchange rate for NTD (functional currency) to each relevant currency increases or decreases 5%. 5% is the sensitivity percentage used when the Company internal reports the exchange rate risks to the main management level; it also represents the management level’s evaluation on foreign currency exchange rate’s reasonable range for possible changes. The table below shows when individual functional currency relatively appreciates by 5% to each relevant currency, the amount that will cause changes for net profit before tax. When NTD to each relative foreign currency depreciates by 5%, its impact on net profit before tax will be the same amount in reverse.

Decrease in net profit before tax	US Dollar’s Impact	US Dollar’s Impact
	2021 ( $ 12,190 )	2020
		( $ 18,259 )

The amounts above mainly originates from the Company’s bank deposit in US dollars that are still outstanding on the date of balance sheet and has not undergone cash flow hedges, and from accounts receivable. (2) Interest rate risks

The Company’s carrying amount for financial assets and liabilities impacted by interest rate risk exposures on the date of balance sheet is as follow:

Interest rate risk with fair value －Financial assets －Financial liabilities Interest rate risk with cash flow －Financial assets －Financial liabilities	December 31,2021 $ 138,678 2,130,285 614,177 725,307	December 31,2020
		$ 28,782 847,029 506,137 1,093,063

• 50 -

Sensitivity analysis

The sensitivity analysis below is determined by the interest rate risk exposure according to non-derivative instruments on the date of balance sheet. The Company internal uses 25 basis points increase/decrease rate of change when reporting the interest rate to the main management level. This also represents the management level’s evaluation on the rate’s reasonable range for possible changes.

If the interest rate increases/decreases by 25 basis points, under the circumstance that all other variables remain unchanged, the Company’s net profit before tax for 2021 and 2020 relatively decreased/increased by NTD 278 thousands and NTD 1,467 thousands. This is mainly caused by the Company’s risk exposures from variable interest rate bank demand deposit and loan risks.

2. Credit risks

Credit risks refer to the Company’s risks in financial loss owing to the counterparty’s delinquency in fulfilling contract obligations. As of the date of balance sheet, the Company may face greatest credit risk possibly because of financial loss owing to the counterparty’s unfulfilled obligation, of which is mainly from the carrying amount for financial assets recognized in the individual balance sheet.

The policy that the Company adopts is to only make transactions with reputable targets, and the Company will obtain full collateral when necessary so as to reduce the risk of financial loss owing to delinquency.

The targets for accounts receivable encompass numerous customers, scattered in sales for oil and feeds. The Company does not have any significant credit risk exposure against any single counterparty or any set counterparties with similar characteristics. 3. Current risks

The Company supports its operation and reduces the impact of cash flow fluctuation through management and through maintaining sufficient position of cash.

The Company’s management level supervises the usage status of the bank’s financing limit and ensures the fulfillment of the loan’s contract clauses. As of December 31, 2021 and 2020, the Company’s undrawn bank financing limit was respectively NTD 1,657,548 thousands and NTD 1,432,747 thousands.

The table below shows the analysis of the Company’s remaining contract of the agreed repayment period’s non-derivative financial liability. It refers to the earliest possible repayment date requested upon the Company, and was prepared by the financial liability’s undiscounted cash flow.

• 51 -

December 31, 2021

Liabilities without interest Lease liability Floating interest rate instrument Fixed interest rate instrument	On demand or less than 1 month	On demand or less than 1 month		1-3 months		3 months-1 year $ 154,458 5,453 80,728 441,434 $ 682,073		1-5years $ - 19,481 515,000 - $ 534,481		More than 5 years
		$ 128,733 692 18,707 758,909 $ 907,041		$ 178,569 2,116 110,872 787,013 $ 1,078,570						$ - 152,211 - - $ 152,211

Advanced information regarding maturity date analysis for lease liabilities: Less than 1 More than year 1-5 years 5-10 years 10-15 years 15-20 years 20 years Lease liability $ 8,261 $ 19,481 $ 18,495 $ 18,495 $ 18,495 $ 96,726 December 31, 2020

Liabilities without interest Lease liability Floating interest rate instrument Fixed interest rate instrument	On demand or less than 1 month $ 84,932 729 162,500 424,974 $ 673,135		1-3 months $ 110,854 2,187 265,830 100,812 $ 479,683		3 months-1 year $ 88,450 5,316 169,733 257,210 $ 520,709		1-5years $ - 19,838 495,000 - $ 514,838		More than 5 years
									$ - 44,074 - - $ 44,074

Advanced information regarding maturity date analysis for lease liabilities: Less than 1 More than year 1-5 years 5-10 years 10-15 years 15-20 years 20 years Lease liability $ 8,232 $ 19,838 $ 18,517 $ 18,517 $ 7,040 $ -

XXVII. Related Parties’ Transactions

• (1) Related parties’ names and relationships

Name of Related Parties ~~Affiliated enterprises with significance~~ Central Union Oil Corp.

Subsidiary companies TOP FOOD FU YOU AN KANG CHONG HSIANG INTERNATIONAL

FORMOSA OIL PROCESSING (PANAMA) S.A. Other related parties Cheng Xin Investment Co., Ltd.

Shin Tai Industry Co., Ltd. Morn Sun Feed Ltd.

Relationship with the Company

Invested company denominated accounted for using equity method

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

The Company’s subsidiary company

Its main shareholder is the Company’s CEO’s relative within first degree relationship

Its chairman is the Company’s vice chairman’s spouse The Company’s judicial person chairman

(next page)

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(con’t)

• (2) Operating income

Operating income
Classification/Name of Related Parties Affiliated enterprises Central Union Oil Corp. Subsidiary companies Other related parties		2021 $ 2,378,189 551,708 109,289 $ 3,039,186		2020
				$ 1,503,581 361,974 86,884 $ 1,952,439

The Company sells processed soy flour and exclusively selected soy beans to affiliated enterprises, and the denomination for the selling price is the market price subtracting the selling price that affiliated enterprises should bear. The transaction conditions for subsidiary companies and other related parties were defined separately.

• (3) Purchases

Classification/Name of Related

Classification/Name of Related
Parties Subsidiary companies Affiliated enterprises		2021 $ 268,529 347,209 $ 615,738		2020
				$ 232,016 69,671 $ 301,687

The Company’s purchasing transaction with related parties was defined on a separate basis.

• (4) Processing expense

Processing expense
Classification/Name of Related Parties Affiliated enterprises Central Union Oil Corp.		2021 $ 225,139		2020
				$ 220,487

Processing expenses are mainly the Company’s entrusting of the affiliated enterprises to process and manufacture soybean oil , soy flour, exclusively selected soy beans, and shelled soy flour. As for the processing expense, it is denominated according to the entrusted processing contract agreed and signed by both parties. The contract price was decided on a separate basis.

• 53 -

(5) Lease Agreement Operating lease rental

The Company offered workplaces as operating lease rentals to subsidiary company Chong Hsiang International Co., Ltd. and other related party Cheng Xin Investment Co., Ltd. The lease period is 5 years, and their rents and payment methods were decided separately.

The Company offered transport equipment as operating lease rental to affiliated enterprise Central Union Oil Corp in 2020. The lease period was 2 months, and its rent and payment method were decided separately.

Lease income is summarized as follow: Classification/Name of Related

Classification/Name of Related
Parties Affiliated enterprise Central Union Oil Corp. Subsidiary company Chong Hsiang International Other related parties Cheng Xin Investment		2021 $ - 36 36 $ 72		2020
				$ 44 36 36 $ 116

The total amount of lease payments to be collected in the future

are summarized as follow:

are summarized as follow:
Classification/Name of Related Parties Subsidiary company Chong Hsiang International Other related parties Cheng Xin Investment	December 31,2021 $ 174 144 $ 318	December 31,2020
			$ 30 180 $ 210

• (6) Other Income

Other Income
Classification/Name of Related Parties Subsidiary company Top Food Chong Hsiang International		2021 $ 5,586 139 $ 5,725		2020
				$ 4,386 - $ 4,386

• 54 -

(7) Accounts Receivable from Related Parties

Items Accounts receivable – related parties Notes receivable – related parties Other receivables – related parties	Classification/Name of Related Parties Affiliated enterprise CENTRAL UNION OIL CORP. Subsidiary Company CHONG HSIANG INTERNATIONAL Other Other related parties Subsidiary company Subsidiary company FORMOSA OIL PROCESSING (PANAMA) S.A. Other	December 31, 2021 $ 351,471 138,068 1,563 10,728 $ 501,830 $ 2,904 $ 150,330 637 $ 150,967	December 31, 2020	December 31, 2020
				$ 219,535 74,273 1,279 9,427 $ 304,514 $ 3,184 $ 337,773 454 $ 338,227

Subsidiary company – FORMOSA OIL PROCESSING (PANAMA) S.A had already passed the resolution for capital reduction in November 2020, and will return NTD 337,773 thousands to the Company. The aforementioned amount was received in February 2021. Another resolution for capital reduction had passed in December 2021, and the FORMOSA OIL PROCESSING (PANAMA) S.A will return NTD 150,330 thousands to the Company.

The Company did not receive pledge from related parties for outstanding accounts receivable. The accounts receivable from related parties for 2021 and 2020 were not listed as allowance loss.

(8) Accounts payable from related parties

Items Accounts payable – related parties	Classification/Name of Related Parties Subsidiary company Top Food Affiliated enterprises Central Union Oil Corp.	December 31, 2021 $ 64,717 27,262 $ 91,979	December 31, 2020	December 31, 2020
				$ 38,893 3,894 $ 42,787

The Company did not provide collateral to other related parties for the balance for outstanding accounts receivable.

• 55 -

• (9) Endorsement and Guarantee

Classification/Name of Related

Endorsement and Guarantee Classification/Name of Related
Parties Subsidiary company Top Food Guarantee amount Actual amount spent	December 31,2021 $ 2,915,600 $ 1,791,551	December 31,2020
			$ 2,821,000 $ 1,385,396

The Company offered endorsement and guarantee for Top Food’s financing from the bank.

(10) Other

Other
Items Entertainment expense Other expense	Classification of Related Parties Subsidiary company Affiliated enterprise		2021 $ 2 $ 858		2020
					$ - $ 342

• (11) Remunerations for Main Management Level

The total remunerations for directors and other main management levels for 2021 and 2020 are as follow:

Short-term employees benefit Post-employment benefit		2021 $ 10,256 299 $ 10,555		2020
				$ 11,780 374 $ 12,154

The directors’ and other main management levels’ remunerations were decided by the Remuneration Committee based on individual performance and market trends.

XXVIII. Pledged Asset

The following assets had been provided as collaterals for bank loans:

Property, plant and equipment Limited deposit – bank deposit	December 31,2021 $ 697,430 96,705 $ 794,135	December 31,2020	December 31,2020
			$ 701,420 - $ 701,420

• 56 -

XXIX. Significant Contingent Liabilities and Unrecognized Contractual Commitments

Except for those stated in other notes, the Company’s significant commitments and contingencies on the date of balance sheet are as follow:

• (1) Significant commitmen

• As of December 31, 2021 and 2020, the amount of the Company’s issuance of unused letters of credit due to the purchasing of raw materials was respectively NTD 620,988 thousands and NTD 1,039,709 thousands.

• Unrecognized contractual commitments are as follow: December 31, 2021 December 31, 2020

Purchase of property, plant, and equipment $ 67,952 $ 264,084

• (2) Contingencies ts

The Company purchased low cost oil as raw materials from Chang Chi Foodstuff Factory Co., Ltd. (hereafter referred to as Chang Chi Foodstuff), which resulted in the Company’s compensation loss from oil recovery and related litigations. The Company filed for proceedings in a criminal case that brought a supplementary civil action against Chang Chi Foodstuff for compensation for damages in February 2014. The court convicted Chang Chi Foodstuff for offense of fraud in July 2014, and the Company should be jointly compensated with NTD 38,307 thousands. This case was appealed by Chang Chi Foodstuff, and was sent back by the Supreme Court for retrial. The Company won the lawsuit as judged by the court in November 2018. Chang Chi Foodstuff filed for appeal in January 2019. As of the date the board of directors approved this individual financial report, it was still under review by the court. The Company had not recognize such compensation gains yet.

• XXX. Foreign Currency Assets and Liability Information with Significant Impact

Impact
The information	below is expressed in the Company’s foreign
currency aggregate apart		from the Company’s functional currency. The
exchange rate disclosed refers to the exchange rate for such foreign
currencies’ conversion to		functional currency. Foreign		currency assets
and liabilities with significant impact are as follow:
December 31, 2021				Unit:
			Foreign Currency thousands,
				NTD thousands
	Foreign			Carrying
	Currency		Exchange Rate	Amount
Foreign currency
assets
Monetary items
US dollars	$	8,810	27.68 (USD:NTD)	$ 243,805
Non-monetary items
Subsidiary companies
that adopt equity
method
US dollars		5,244	27.68 (USD:NTD)	145,157

• 57 -

December 31, 2020

December 31, 2020
Foreign currency assets Monetary items US dollars Non-monetary items Subsidiary companies that adopt equity method US dollars	Foreign Currency $ 12,822 10,337	Exchange Rate 28.48 (USD:NTD) 28.48 (USD:NTD)	Carrying Amount
			$ 365,176 294,392

Unrealized foreign currency exchange profit (loss) with significant impact is as follow:

Foreign Currency US dollars	2021	Unrealized Net Exchange Profit(Loss) ($ 7,048)	2020
	Exchange Rate 27.68 (USD:NTD)		Exchange Rate 28.48 (USD:NTD)	Unrealized Net Exchange Profit(Loss)
		(		(	$ 2,904)

XXXI. Noted Disclosures

Related information on (1) Significant transactions and (2) reinvestment business:

1. Loan funds to others: none.

2. Offer endorsement and guarantee for others: Schedule 1

3. Final holding of marketable securities status (not including investments in subsidiary companies and affiliated enterprises): none.

4. Accumulated purchasing or selling of the same marketable securities’ amount reaches NTD 300 million or more than 20% of the actual received capital: none.

5. The amount for obtained property reaches NTD 300 million or more than 20% of the actual capital received: none.

6. Disposal of the amount for obtained property reaches NTD 300 million or more than 20% of the actual received capital: none.

7. The amount for purchasing or selling or stocks with related parties reaches NTD 100 million or more than 20% of the actual received capital: Schedule 2.

8. Accounts receivable from related parties reach NTD 100 million or more than 20% of the actual received capital: Schedule 3.

9. Transaction of derivative products: none.

10. Information on invested companies: Schedule 4.

11. 58 -

12. (3) Information on Investment in China:

13. Name of invested companies in China, main operating items, actual received capital, investment methods, status of outward/inward remittance of funds, final investment carrying value, repatriated investment gains, and investment amount limit in Mainland China: Schedule 5.

14. The following significant transactions, and their prices, payment conditions, and unrealized profit or losses that occurred directly or indirectly from the third region with the invested companies in China:

    • (1) Purchasing amount and its percentage, and related accounts payable’s final balance and its percentage: none.

    • (2) Selling amount and its percentage, and related accounts receivable’s final balance and its percentage: none.

    • (3) Property transaction amount and its generated profit and loss amount: none.

    • (4) Endorsement and guarantee for notes or the final balance and purpose for providing collaterals: none.

    • (5) The highest balance, final balance, interest rate range, and total current interest for the accommodation of funds: none.

    • (6) Other transactions that cause significant impacts on the current year’s profit and loss status or financial status, such as the providing or the receiving of services, etc.: none.

15. (4) Main information on shareholders: name of shareholders whose equity ratio reaches more than 5%, shareholding amount, and pro rata: Schedule 6.

16. 59 -

Unit: NTD thousands

Formosa Oilseed Processing Co., Ltd. Endorsement and Guarantee for Others

January 1 to December 31, 2021

Schedule 1

Code	Name of Endorsement and Guarantee Company	Endorsed and Guaranteed Target	Endorsed and Guaranteed Target	Endorsement and Guarantee Limit for Single Enterprise (note 2)	Maximum Endorsement and Guarantee Balance for the Current Period	Final Endorsement and Guarantee Balance	Actual Drawn Amount	Endorsement and Guarantee Amount Guaranteed by Property	Ratio of Accumulated Endorsement and Guarantee Amount to the Net Value of the Latest Financial Statement (%)	Maximum Limit for Endorsement and Guarantee (note 2)	Belongin g to Parent Company ’s Endorsem ent and Guarantee for Subsidiar y Companie s(note 3)	Belongin g to Subsidiar y Companie s’ Endorsem ent and Guarantee for Parent Company (note 3)	Belongin g to Endorsem ent and Guarantee for Mainland China (note 3)	Notes
		Name of Company	Relationship (note 1)
0	Formosa Oilseed Processing	Top Food	(2)	$ 3,440,786	$ 2,920,000	$ 2,915,600	$ 1,791,551	$ -	85	$ 4,128,943	Y	－	－

Note 1: ： the relationships between endorser and guarantee and endorsed and guaranteed targets are as follow:

• (1) Companies with business relationships.

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

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

• (4) Between companies in which the company directly and indirectly holds more than 90% of voting shares.

• (5) Based on the needs of contract engineering, companies from the same industry or joint creators that mutually guarantee according to contractual clauses.

• (6) Companies endorsed and guaranteed by all shareholders according to their shareholding ratio owing to mutual investment relati onships.

• (7) Inter-industries that refer to the Consumer Protection Act that re gulates the contract bond with joint collateral for the contract for the selling of pre -sold homes.

• Note 2: the Company’s handling of the total amount for endorsement and guarantee is limited to not exceeding 120% of the net value of the Company’s latest financial statement. As for the limit for the endorsement and guarantee for domestic single enterprises, the limit shall not exceed 100% of the net value of the Co mpany’s latest financial statement. The limit for the endorsement and guarantee of foreign single affiliated companies shall not exceed 40% of the net value of the parent company’s latest financial statement. Subsidiary companies’ handling of the total amount for endorsement and guarantee is limited to not exceeding 50% of the net value of the subs idiary companies’ latest financial statement. As for the limit for subsidiary companies’ endorsement and guarantee for single enterprises, it is limited to not exceeding 20% of the net value of subsidiary companies’ latest financial statement. The limit fo r subsidiary companies’ endorsement and guarantee for foreign single affiliated companies shall not exceed 30% of the net value of subsidiary companies’ latest financial statement.

• Note 3: those belonging to parent companies listed on the OTC’s endorsement and guarantee for subsidiary companies, those belonging to subsidiary companies’ endorsement and guarantee for parent companies listed on the OTC, and those belonging to endorsement and guarantee for Mainland China should fill out “Y” at the beginning.

• 60 -

Formosa Oilseed Processing Co., Ltd.

Purchasing or Selling Amount with Related Parties Reaches NTD 100 million or Actual Received Capital Is Above 20% January 1 to December 31, 2021

Schedule 2	Schedule 2						Unit: NTD thousands Statues and Reasons for Discrepancy in Transaction Conditions and General Transaction Notes and Accounts Receivable (Payable) Note Unit Price Credit Period Balance Percentage of Total Notes and Accounts Receivable (Payable) (%) Deduct of sales expense that should be borne by Central Union Oil Corp. according to market price － $ 351,471 27 － － ( 27,262 ) 6 － － ( 64,717 ) 15 － － 64,717 9 － － 138,068 11 － － ( 138,068 ) 100 10,728 1	Unit: NTD thousands Statues and Reasons for Discrepancy in Transaction Conditions and General Transaction Notes and Accounts Receivable (Payable) Note Unit Price Credit Period Balance Percentage of Total Notes and Accounts Receivable (Payable) (%) Deduct of sales expense that should be borne by Central Union Oil Corp. according to market price － $ 351,471 27 － － ( 27,262 ) 6 － － ( 64,717 ) 15 － － 64,717 9 － － 138,068 11 － － ( 138,068 ) 100 10,728 1	Unit: NTD thousands Statues and Reasons for Discrepancy in Transaction Conditions and General Transaction Notes and Accounts Receivable (Payable) Note Unit Price Credit Period Balance Percentage of Total Notes and Accounts Receivable (Payable) (%) Deduct of sales expense that should be borne by Central Union Oil Corp. according to market price － $ 351,471 27 － － ( 27,262 ) 6 － － ( 64,717 ) 15 － － 64,717 9 － － 138,068 11 － － ( 138,068 ) 100 10,728 1	Unit: NTD thousands Statues and Reasons for Discrepancy in Transaction Conditions and General Transaction Notes and Accounts Receivable (Payable) Note Unit Price Credit Period Balance Percentage of Total Notes and Accounts Receivable (Payable) (%) Deduct of sales expense that should be borne by Central Union Oil Corp. according to market price － $ 351,471 27 － － ( 27,262 ) 6 － － ( 64,717 ) 15 － － 64,717 9 － － 138,068 11 － － ( 138,068 ) 100 10,728 1	Unit: NTD thousands Statues and Reasons for Discrepancy in Transaction Conditions and General Transaction Notes and Accounts Receivable (Payable) Note Unit Price Credit Period Balance Percentage of Total Notes and Accounts Receivable (Payable) (%) Deduct of sales expense that should be borne by Central Union Oil Corp. according to market price － $ 351,471 27 － － ( 27,262 ) 6 － － ( 64,717 ) 15 － － 64,717 9 － － 138,068 11 － － ( 138,068 ) 100 10,728 1
Purchases (Sales) Company	Name of Counterparty	Relationship		Transaction Status			Statues and Reasons for Discrepancy in Transaction Conditions and General Transaction		Notes and Accounts Receivable (Payable)		Note
			Purchases (Sales)	Amount	Percentage of Total Purchases (Sales) (%)	Credit Period	Unit Price	Credit Period	Balance	Percentage of Total Notes and Accounts Receivable (Payable) (%)
Formosa Oilseed Processing Co., Ltd. Formosa Oilseed Processing Co., Ltd. Top Food Formosa Oilseed Processing Co., Ltd. Chong Hsiang International Formosa Oilseed Processing Co., Ltd	Central Union Oil Corp. Top Food Formosa Oilseed Processing Co., Ltd. Chong Hsiang International Formosa Oilseed Processing Co., Ltd. Morn Sun Feed Ltd.	Affiliated enterprise Subsidiary company Parent company Subsidiary company Parent company Other related parties	Sales Purchases and processin g expenses Purchases Sales Sales Purchases Sales	$ 2,378,189 572,348 268,529 268,529 531,699 531,699 109,289	25 6 3 8 5 100 1	45-60 days 30-45 days 30-45 days 30-45 days 30-45 days 30-45 days 30-45 days	Deduct of sales expense that should be borne by Central Union Oil Corp. according to market price － － － － －	－ － － － － －	$ 351,471 ( 27,262 ) ( 64,717 ) 64,717 138,068 ( 138,068 ) 10,728	27 6 15 9 11 100 1

• 61 -

Formosa Oilseed Processing Co., Ltd.

Accounts Receivable from Related Parties Reaches NTD 100 million or Actual Received Capital Is Above 20%

December 31, 2021

Schedule 3					Unit: NTD thousands	Unit: NTD thousands	Unit: NTD thousands	Unit: NTD thousands
Companies Listed for Accounts Receivable	Name of Transaction Targets	Relationship	Balance for Accounts Receivable from Related Parties	Turnover	Accounts Receivable from Related Parties Overdue		Accounts Receivable from Related Parties Final Recovered Amount	Loss on Pre-Estimated Allowance
					A m o u n t	Handling Method
Formosa Oilseed Processing Formosa Oilseed Processing	Central Union Oil Chong Hsiang International	Affiliated enterprise Subsidiary company	$ 351,471 138,068	8 (times) 5 (times)	$ - -	- -	$ 351,471 138,068	$ - -

Unit: NTD thousands

• 62 -

Formosa Oilseed Processing Co., Ltd.

Name, Location, and other Related Information about Invested Company

January 1 to December 31, 2021

Schedule 4

Unit: NTD thousands

Name of Investing Company	Name of Invested Company	Location	Main Operating Items	Original Invested Amount	Original Invested Amount	Year-End Holdings	Year-End Holdings	Year-End Holdings	Invested Company’s Current Year Profit (Loss)	Investment Profit (Loss) Recognized in the Current Year (note 1)	Note
				End of This Year	End of Last Year	No. of Shares (1000)	Percentage (%)	Carrying Amount
FORMOSA OILSED PROCESSING	TOP FOOD FORMOSA OIL PROCESSING (PANAMA) S. A. FU YOU AN KANG CHONG HSIANG INTERNATIONA L CENTRAL UNION OIL	TAICHUNG CITY PANAMA CITY, REPUBLIC OF PANAMA CHANG HUA COUNTY TAICHUNG CITY TAICHUNG CITY	Manufacturing and selling of flour products General investment business Poultry breeding and wholesaling of agricultural products Wholesale trading of oil products Businesses regarding exclusive selection and rendering of soy beans	$ 449,180 242,398 （note 3） 25,908 50,000 203,316	$ 449,180 392,728 25,908 50,000 203,316	51,963 7 2,591 5,000 20,000	63 100 51 100 33	$ 687,580 145,157 30,436 29,187 284,271	$ 91,846 6,109 ( 210 ) 10,179 126,053	$ 57,881 （note 2） 6,109 ( 108 ) 10,179 42,018	Subsidiary company Subsidiary company Subsidiary company Subsidiary company Affiliated enterprise

Note 1: calculated based on the accountant’s auditing of the financial statement in the same period.

Note 2: recognized investment interests of NTD 58,008 thousands and deducted the unrealized benefits of countercurrent transactions of NTD 127 thousands.

Note 3: the decrease of original investment amount is due to FORMOSA OIL PROCESSING (PANAMA) S. A.’s capital reduction.

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Formosa Oilseed Processing Co., Ltd.

Investment Information in China January 1 to December 31, 2021

Schedule 5

Schedule 5														Unit: NTD thousands Inward Remitted Investment Profit as of the Current Year Note $ 315,964
Name of Invested Company in China	Main Operating Items		Actual Received Capital	Investment Method (note 1)	Accumulated Investment Amount Remitted Outward from Taiwan at BOY		Investment Amount Remitted Outward or Repossessed in the Current Year		Accumulated Investment Amount Remitted Outward from Taiwan at the End of the Year	Invested Company’s Current Year Profit or Loss (note 3)	Shareholdin g Ratio of Parent Company’s Direct or Indirect Investment	Investment Profit (Loss) Recognized in the Current Year (note 3)	Year-End Investment Carrying Amount (note 3)	Inward Remitted Investment Profit as of the Current Year	Note
							Outward Remittance	Repossession
FORMOSA OILSEED PROCESSING (NINGBO)	Wholesale trading of oil products		$ 227,590	(2) (note 2)	$ 727,107		$ -	$ 315,964	$ 411,143	$ 5,946	100%	$ 5,946	$ 141,399	$ 315,964
Year-End Accumulated Investment Amount Remitted Outward from Taiwan to Mainland China			Investment Amount Approved by the Investment Commission, MOEA (note 4)			Investment Limit in Mainland China According to Regulations by the Investment Commission, MOEA(note 5)
$ 411,143			$ 411,781			$ 2,064,472

Note 1: investment methods are categorized into three categories as follow, and it is acceptable to just mark the category:

• (1) Direct investment in Mainland China.

• (2) Reinvestment in China via companies from a third region.

• (3) Other methods.

Note 2: the investing company from the third region is FORMOSA OIL PROCESSING (PANAMA) S.A.

Note 3: recognized based on the financial statements of the parent company in Taiwan, audited by certified public accountants during the same period.

Note 4: the parent company was approved by the Investment Committee, MOEA (1999) with No. Investment -Review-II-88710679 and No. Investment-Review-II-88727883 on February 8, 1999 and October 13, 1999, and indirectly invested USD 4,910 thousands and USD 17,975 thousands in Mainland China. In addition, on April 21, 2021, the Investment Committee approved the deduction of US$11,349 thousands from the investment in Mainland China by No. Investment -Review-II-11000089220.

Note 5: calculated based on the li mited amount regulated by the “Regulations Governing the Examination of Investment or Technical Cooperation in Mainland China ” ordered by the Investment Committee, MOEA in August 2008.

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Formosa Oilseed Processing Co., Ltd. Information on Major Shareholders December 31, 2021

Schedule 6

Name of Major Shareholders	Shares	Shares
	Number of Shares Held	Shareholding Percentage
Shin Tai Industry Co., Ltd. Qun Sheng Fa Co., Ltd. Cheng Xin Investment Co., Ltd. An Da Investment Co., Ltd. Guan, Yao Zhan Shin Fong Trading Co., Ltd.	21,650,939 21,406,000 20,843,659 20,712,194 17,103,887 15,281,867	9.89% 9.78% 9.53% 9.47% 7.82% 6.98%

• Note 1: the information on major shareholders in this table is based on the calculation made by the TDCC, of which the shareholders hold more than 5% of the company’s common share that was completed by non-physical payments (including treasury shares) and special shares on the last business day of the quarter-end of the current quarter. The share capital and the actual number of shares completed by non-physical payments recorded in the Company’s individual financial report may differ due to the difference in calculation basis.

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§TABLE OF CONTENTS FOR SCHEDULES FOR SIGNIFICANT ACCOUNTING ITEMS§

ITEM Schedule for Assets and Liabilities Schedule for Cash Schedule for Financial Assets Measured at Amortized Cost Schedule for Notes Receivable Schedule for Accounts Receivable Schedule for Inventory Schedule for Prepayments Schedule for Investment Changes Accounted for Using Equity Method Schedule for Changes in Property, Plant and Equipment Schedule for Accumulated Depreciation in Property, Plant and Equipment Schedule for Changes in ROU Assets Schedule for Changes in ROU Assets’ Accumulated Depreciation Schedule for Deferred Tax Assets Schedule for Short-Term Loans Schedule for Short-Term Notes Payable Schedule for Notes Payable Schedule for Accounts Payable Schedule for Other Payables Schedule for Long-Term Loans Schedule for Lease Liabilities Schedule for Deferred Tax Liabilities Schedule for Profit and Loss Items Schedule for Operating Income Schedule for Operating Costs Schedule for Operating Expense Schedule for Other Profits and Expenses Net Value Functional Summary Statement for Employee Benefits, Depreciation, Amortized Expenses

N U M B E R / I N D E X

Table 1 Note 7 Table 2 Table 3 Table 4 Note 10 Table 5 Note 12 Note 12 Table 6 Table 6 Note 22 Table 7 Note 15 Table 8 Table 9 Note 17 Table 10 Table 11 Note 22 Table 12 Table 13 Table 14 Note 21 Table 15

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Formosa Oilseed Processing Co., Ltd.

Schedule for Cash

December 31, 2021

Table 1

Unit: NTD thousands

Item Cash on hand and petty cash Bank deposit Check deposit Demand deposit		Balance
		$ 141 41,973 614,177 $ 656,291

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Formosa Oilseed Processing Co., Ltd.

Schedule for Notes Receivable

December 31, 2021

Table 2 Unit: NTD thousands

Name of Customer Vedan Enterprise Corporation Qiu, Shi-Chong YAN SHANG ENTERPRISE CO., LTD. Ren Jia Ltd. Huang, Qi-Cheng Other (note) Total		Balance
		$ 19,784 9,806 6,341 5,931 4,793 168,409 $ 215,064

Note: the balance for each account did not reach 5% of the balance for this item.

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Formosa Oilseed Processing Co., Ltd.

Schedule for Accounts Receivable

December 31, 2021

Table 3 Unit: NTD thousands

Name of Customers You Mu Enterprise Co., Ltd. Wei Lih Foods Industry Co., Ltd. Ve Wong Corporation Fwusow Industry Co., Ltd. Hwa Yuan Foods Co., Ltd. Other (note) Subtract: allowance loss Net value		Balance
		$ 35,731 23,564 15,078 14,481 10,913 480,791 580,558 214 $ 580,344

Note: the balance for each account did not reach 5% of the balance for this item.

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Formosa Oilseed Processing Co., Ltd.

Schedule for Inventory December 31, 2021

Table 4

Unit: NTD thousands

Item In-transit inventory Raw materials Finished goods Work in progress Materials Total		Balance	Balance	Balance
		Costs $ 619,855 238,643 219,659 82,254 7,130 $ 1,167,541	Market Price(note)
				$ 703,383 260,511 235,818 88,479 7,130 $ 1,295,321

Note: NRV

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Table 5

Unit: NTD thousands, unless stated otherwise

Formosa Oilseed Processing Co., Ltd. Schedule for Investment Changes Accounted for Using Equity Method 2021

Invested Company Investments accounted for using equity method TOP FOOD FORMOSA OIL PROCESSING (PANAMA) S.A. FU YOU AN KANG CORP. ZHONG XIANG INTERNATIONAL CORP. CENTRAL UNION OIL CORP.	BOY Balance No. of Shares (1000) Amount 51,963 $ 691,836 12 294,392 2,591 31,748 5,000 19,008 20,000 274,924 $ 1,311,908	BOY Balance No. of Shares (1000) Amount 51,963 $ 691,836 12 294,392 2,591 31,748 5,000 19,008 20,000 274,924 $ 1,311,908	Increase in Current Year No. of Shares (1000) Amount - $ - - - - - - - - - $ -	Increase in Current Year No. of Shares (1000) Amount - $ - - - - - - - - - $ -	Decrease in Current Year No. of Shares (1000) Amount - ( $ 62,356 ) ( 5 ) ( 150,330 ) - ( 1,165 ) - - - ( 32,000) ($ 245,851)	Decrease in Current Year No. of Shares (1000) Amount - ( $ 62,356 ) ( 5 ) ( 150,330 ) - ( 1,165 ) - - - ( 32,000) ($ 245,851)	Gains on subsidiary companies and affiliated enterprises accounted for using equity method $ 57,881 6,109 ( 108 ) 10,179 42,018 $ 116,079	Exchange difference after conversion in foreign operating institutions’ financial statements $ - ( 5,014 ) - - - ($ 5,014)	Share of subsidiary companies and affiliated enterprises’ other comprehensive income, accounted for using equity method $ - - - - ( 639) ($ 639)		(Un)realized profit $ 219 - 39 ) - 32) $ 148		Year-End Balance		Amount $ 687,580 145,157 30,436 29,187 284,271 $ 1,176,631		Equity Net Value Amount $ 689,793 145,157 30,475 29,187 284,981 $ 1,179,593	Note
	No. of Shares (1000) 51,963 12 2,591 5,000 20,000		No. of Shares (1000) - - - - -		No. of Shares (1000) - ( 5 ) - - -							No. of Shares (1000) 51,963 7 2,591 5,000 20,000	Shareholding% 63 100 51 100 33
						( ( ( ( (	(	( (	( (	( (								Notes 1 & 5 Notes 4 & 5 Notes 3 & 5 Note 5 Notes 2 & 5

Note 1: The decrease in current year is due to the allocation of Top Food’s cash dividend.

Note 2: The decrease in current year is due to the allocation of Central Union Oil’s cash dividend.

Note 3: The decrease in current year is due to the allocation of Fu You An Kang’s cash dividend.

Note 4: The decrease in current year is due to FORMOSA OIL PROCESSING (PANAMA) S.A. ’s capital reduction.

Note 5: It is calculated based on the invested company’s audited financial statements and the Company’s shareholding rati o.

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Formosa Oilseed Processing Co., Ltd. Schedule for Changes in ROU Assets

2021

Table 6

Unit: NTD thousands

			Land		Buildings		Transport		Total
						equipment
Cost
January	1, 2021 balance		$ 61,846		$ 2,853		$ 13,993		$ 78,692
Current	year addition		80,618		-		4,719		85,337
Current	year disposal		-		-	(	2,527)	(	2,527)
December 31, 2021			142,464		2,853		16,185		161,502
balance
Accumulated depreciation
January	1, 2021 balance	(	6,364 )	(	913 )	(	7,772 )	(	15,049 )
Depreciation expense		(	3,241 )	(	456 )	(	4,171 )	(	7,868 )
Current	year disposal		-		-		2,527		2,527
December 31, 2021		(	9,605)	(	1,369)	(	9,416)	(	20,390)
balance
December 31, 2021 net			$ 132,859		$ 1,484		$ 6,769		$ 141,112
	amount

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Formosa Oilseed Processing Co., Ltd. Schedule for Short-Term Loans December 31, 2021

Table 7

Type(s) of loan and creditors Guaranteed Loans E.SUN Commercial Bank, Chengdong Branch Credit Loans Bank SinoPac, Fengyuan Branch Hua Nan Commercial Bank, Ltd., Chuxu Branch Agricultural Bank of Taiwan Corporation, Taichung Branch Bank of Taiwan, Taichung Harbor Branch Cathay United Bank, Taichung Branch Taiwan Cooperative Bank, Songjiang Branch Chang Hwa Bank Head Office Taiwan Cooperative Bank, Sinjhong Branch Mega International Commercial Bank, Taipei Fuxing Branch Shin Kong Bank, Taichung Kang Branch E.SUN Commercial Bank, Chengdong Branch First Commercial Bank, Nanmen Branch Letter of Credit Loans Hua Nan Commercial Bank, Ltd., Chuxu Branch	Loan period Oct.2021-Jan.2022 Dec.2021-Feb.2022 Oct.2021-Mar.2022 Oct.2021-Oct.2022 Jul.2021-May2022 Oct.2021-Apr.2022 Nov.2021-Feb.2022 Dec.2021-Feb.2022 Nov.2021-Feb.2022 Dec.2021-Mar.2022 Oct.2021-Jan.2022 Oct.2021-Mar.2022 Dec.2021-Feb.2022 Nov.2021-Apr.2022	Year interest (%) 0.65 1.03 0.98 0.81 0.95 0.84 1.00-1.05 1.10 1.00 1.10 1.03 0.96 0.95 0.73		Balance $ 85,000 298,313 245,900 200,000 159,238 157,197 152,000 141,000 88,800 71,000 70,000 68,000 21,000 1,672,448 20,728	Amount financed $ 300,000 480,000 300,000 200,000 270,000 180,000 350,000 350,000 300,000 100,000 100,000 200,000 130,000 300,000	Pledge or collateral
						USD Time Deposits None None None None None None None None None None None None

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Chang Hwa Bank Head Office Dec.2021-Feb.2022 0.90 Taiwan Cooperative Bank, Sinjhong Branch Dec.2021-Feb.2022 0.89 Taishin International Bank, Jianpei Branch Nov.2021-Jan.2022 0.97 E.SUN Commercial Bank, Chengdong Branch Nov.2021-Jan.2022 0.90 Mega International Commercial Bank, Fengyuan Branch Dec.2021-Feb.2022 1.00	11,092 350,000 None 4,978 300,000 None 3,808 250,000 None 2,399 200,000 None 2,302 480,000 None 45,307 $ 1,802,755

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Formosa Oilseed Processing Co., Ltd.

Schedule for Notes Payable

December 31, 2021

Table 8

Unit: NTD thousands

Name of Suppliers Guangan Transportation Co., Ltd. Qingyi Motor Freight Co., Ltd. Qingxiang Motor Freight Co., Ltd. Dengshun Express Co., Ltd. Chen Jun-Yuan Other (note)		Balance
		$ 758 585 351 261 260 2,821 $ 5,036

Note: the balance for each account did not reach 5% of the balance for this item.

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Formosa Oilseed Processing Co., Ltd.

Schedule for Accounts Payable

December 31, 2021

Table 9

Unit: NTD thousands

Name of Suppliers Taisun Enterprise Fwusow Industry Co., Ltd. Fure Shing Can Printing Manufacturing Co., Ltd. Chia Fha Enterprise Co., Ltd. DA SHUN OIL PRODUCTION CO., LTD. Other (note)		Balance
		$ 53,851 44,708 7,196 6,489 5,386 207,774 $ 325,404

Note: the balance for each account did not reach 5% of the balance for this item.

• 76 -

Unit: NTD thousands

Formosa Oilseed Processing Co., Ltd. Schedule for Long-Term Loans December 31, 2021

Table 10

Loan Creditor Banks E.SUN Commercial Bank Taishin International Bank Taiwan Cooperative Bank Mega International Commercial Bank Shin Kong Bank Chang Hwa Bank Bank of Panhsin Shanghai Commercial and Savings Bank Total	Credit Period Feb 2017 – Feb 2024 May 2018-July 2023 Jun 2018-Mar 2023 Jul 2020-Jul 2024 Dec 2021-Apr 2024 Mar 2019-Mar 2022 Jan 2019-Jan 2022 Mar 2019-Mar 2022	Repayment Methods The first installment was repaid in August 2019; every 6 months is 1 installment. The loan will be evenly amortized in 10 installments. From the first draw date in June 2019, such drawn amount shall be settled on the maturity date. However, it is possible to be applied for revolving loan according to contract regulations. The contract is extended to July 2023. The settlement of the amount employed this time reached the 24thmonth since March 2020. The contract was extended in February 2021 and the settlement of the amount employed this time reached the 24thmonth since March 2021, the draw date of the loan principal. The loan principal can be used as revolving loan within the financing limit before the maturity date in July 2024. According to contract regulations, the loan principal can be used as revolving loan within the financing limit from the first draw date of the loan principal in December 2021 until April 2024 before the maturity date. From the first draw date in March 2019, every 6 months is 1 installment. The loan will be averagely repaid in 6 installments. The loan principal was employed in April 2020, and the first installment was repaid in September 2020; every 6 months is 1 installment. The loan will be evenly amortized in 4 installments. The first installment was repaid in April 2020; every 3 months is 1 installment. The loan will be averagely repaid in 8 installments. The loan principal was employed in February 2020, and the first installment was repaid in October 2020; every 3 months is 1 installment. The loan will be evenly amortized in 6 installments. The first installment was repaid in June 2020; every 3 months is 1 installment. The loan will be evenly amortized in 8 installments.	Year Interest (%) 1.08 1.23 1.25 1.25 1.23 1.15 1.22 1.25		Balance		Total $ 300,000 140,000 100,000 70,000 25,000 20,000 12,500 12,500 $ 680,000	Collateral
				Due within 1 year $ 120,000 - - - - 20,000 12,500 12,500 $ 165,000	Due over 1 year $ 180,000 140,000 100,000 70,000 25,000 - - - $ 515,000
								Property, plant and equipment None None None None None None None

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Formosa Oilseed Processing Co., Ltd. Schedule for Lease Liabilities December 31, 2021

Table 11 Title Land Buildings Transport equipment Subtract: those listed under current Lease liabilities – non-current	Lease Period 11/1/2017- 09/30/2068 4/1/2016- 3/31/2025 10/13/2017- 01/18/2026	Discount Rate 1.08%～ 1.38% 1.38% 1.08%～ 1.38%		Unit: NTD thousands Year-End Balance Note $ 133,989 1,515 7,425 6,750) $ 136,179	Unit: NTD thousands Year-End Balance Note $ 133,989 1,515 7,425 6,750) $ 136,179
			(

• 78 -

Formosa Oilseed Processing Co., Ltd. Schedule for Operating Income

2021

Table 12

Unit: NTD thousands

Item Sales income Soybean oil, soy flour Feeds Corn, oatmeal Subtotal Subtract: sales returns Sales discount Total operating income	Quantity (t) 245,956 78,429 236,339		Amount
			$ 5,771,045 1,118,974 2,676,174 9,566,193 2,283 13,574 $ 9,550,336

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Formosa Oilseed Processing Co., Ltd. Schedule for Operating Costs

2021

Table 13

Unit: NTD thousands

Item Direct raw material BOY raw material and in-transit inventory Plus (subtract): Current year incoming material Selling of raw material Year-end raw material and in-transit inventory Direct raw material consumption Direct labor Manufacturing expense Manufacturing costs Plus (subtract): BOY work in progress Purchased work in progress Selling of work in progress Year-end work in progress Finished goods costs Plus (subtract): BOY finished goods and products Purchased finished goods and products Rendering fee Year-end finished goods and products Production and marketing costs Costs for selling of raw material Costs for selling of work in progress Customs tax refund income Operating costs

Amount

$ 425,332 6,964,144 ( 2,222,154 ) ( 865,628) 4,301,694 32,041 340,306 4,674,041 17,808 99,347 ( 169,089 ) ( 82,254) 4,539,853 125,920 1,934,426 ( 368 ) ( 219,659) 6,380,172 2,222,154 169,089 ( 7,430) $ 8,763,985

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Formosa Oilseed Processing Co., Ltd.

Schedule for Operating Expenses

2021

Table 14

Unit: NTD thousands

Salary Freight export expenses Depreciation Directors’ remuneration Expected loss of credit impairment Other (note)		Promotion expense Management expense $ 54,625 $ 66,246 89,156 27 55,831 - 4,351 9,565 - 12,992 - - 44,803 36,979 $ 248,766 $ 125,809	Research and development expense Expected loss of credit impairment $ 5,129 $ - 16 - - - 1,243 - - - - 60 4,412 - $ 10,800 $ 60		Total
					$ 126,000 89,199 55,831 15,159 12,992 60 86,194 $ 385,435

Note: the balance for each account did not reach 5% of the balance for this item.

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Formosa Oilseed Processing Co., Ltd.

Functional Summary Statement for Employee Benefits, Depreciation, Amortized Expenses 2021 and 2020

Table 15 Unit: NTD thousands

Employee benefits expense Salary expense Labor and health insurance expenses Directors’ remuneration Pension expense Other employee benefits expense Depreciation expense Amortized expense		2021	Total $ 176,399 15,598 12,992 7,311 8,167 29,357 999		2020
	Belonging to operating costs $ 50,399 4,938 - 2,282 1,762 14,198 999	Belonging to operating expenses $ 126,000 10,660 12,992 5,029 6,405 15,159 -		Belonging to operating costs $ 50,391 4,663 - 2,329 2,033 18,187 999	Belonging to operating expenses $ 125,632 9,522 11,112 5,044 5,469 15,368 -	Total
						$ 176,023 14,185 11,112 7,373 7,502 33,555 999

• Note 1: The Company’s number of employees for 2021 and 2020 are respectively 237 and 238, of which the number of directors who are not part -time employees are 7 for both years.

• Note 2: (1) The average employee benefits expense for the current year is NTD 902 thousands (“Total employee benefits expense for the current year” – “Total directors’ remuneration” / “Numbers of employees for the current year” – “Numbers of directors who are not part-time employees”)

  • The average employee benefits expense for the previous year was NTD 888 thousands. (“Total employee benefits expense for the previous year” – “Total directors’ remuneration” / “Numbers of employees for the previous year” – “Numbers of directors who are not part-time employees”)

• (2) The average employee salary expense for the current year is NTD 767 thousands (total salary expense for the current year / “numbers of employees for the current year – directors who are not part-time employees”). The average employee salary expense for t he previous year was NTD 762 thousands (total salary expense for the previous year / “numbers of employees for the previous year – directors who are not part-time employees”).

• (3) The changes in average employee salary expense is 1 % (“average employee salary expense for the current year – average employee salary expense for the previous year” / average employee salary expense for the previous year).

• (4) The Company did not establish supervisors’ system, so there is no supervisors’ remuneration.

• (5) The Company’s salary and remuneration policies for directors, independent directors, managers, and employees are stated as follow:

  • A. Remunerations for directors and independent directors: paid according to the “Directors, Supervisors, and Functional Committe es’ Remunerations Payment Plan” approved by the board of directors.

    • a. The directors’ remunerations are allocated according to the rules in the

      • Company’s by-laws. Independent directors do not take part in the allocation.

    • b. Attendance fees for attending board of directors’ meetings.

    • c. Fixed amount of remunerations is paid to functional committee members every month.

  • B. Remunerations for managers: salaries for high -level managers are approved by the board of directors. Variable remunerations are paid accordi ng to the “Regulations for Managing Year-End Bonus and Annual Allocation of Employee Remunerations.”

  • C. The employees are handled according to the Company’s related rules governing practitioners’ salary.

  • D. The Company’s Salary and Remunerations Committee evaluates on a regular basis, and sets salaries and remunerations for directors and managers.

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