FPC - Interim / Quarterly Report 2021

Stock Code:1301

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Nine Months Ended September 30, 2021 and 2020

Address: No.100, Shuiguan Rd., Renwu Dist., Kaohsiung City 814, Taiwan (R.O.C.) Telephone: (07)371-1411

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

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Commitments and contingencies (10) Losses Due to Major Disasters (11) Subsequent Events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in mainland China (d) Major shareholders (14) Segment information	Page
	1 2 3 4 5 6 7 8 8 8～10 10～11 11～12 12～50 50～58 58 58 59 59 59 60～65 66 66～67 67 68

Contents
1. Cover Page
2. Table of Contents
3. Independent Auditors’ Review Report
4. Consolidated Balance Sheets
5. Consolidated Statements of Comprehensive Income
6. Consolidated Statements of Changes in Equity
7. Consolidated Statements of Cash Flows
8. Notes to the Consolidated Financial Statements
(1)
Company history
(2)
Approval date and procedures of the consolidated financial statements
(3)
New standards, amendments and interpretations adopted
(4)
Summary of significant accounting policies
(5)
Significant accounting assumptions and judgments, and major sources
of estimation uncertainty
(6)
Explanation of significant accounts
(7)
Related-party transactions
(8)
Pledged assets
(9)
Commitments and contingencies
(10) Losses Due to Major Disasters
(11) Subsequent Events
(12) Other
(13) Other disclosures
(a) Information on significant transactions
(b) Information on investees
(c) Information on investment in mainland China
(d) Major shareholders
(14) Segment information

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KPMG

台北市110615信義路5段7號68樓(台北101大樓) Telephone 電話 + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, Fax 傳真 + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) Internet 網址 home.kpmg/tw

Independent Auditors’ Review Report

To the Board of Directors Formosa Plastics Corporation:

Introduction

We have reviewed the accompanying consolidated balance sheets of Formosa Plastics Corporation (“ the Company”) and its subsidiaries (together referred to as “the Group”) as of September 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three months and nine months ended September 30, 2021 and 2020, as well as the changes in equity and cash flows for the nine months ended September 30, 2021 and 2020, and notes to the consolidated financial statements, including a summary of significant accounting policies. The management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with Statement of Auditing Standard 65, “ Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the generally accepted auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in Note 4(b), the consolidated financial statements included the financial statements of certain nonsignificant subsidiaries, which were not reviewed by independent auditors. These financial statements reflect the total assets amounting to $27,352,172 thousand and $34,769,314 thousand, constituting 5.19% and 7.86% of the consolidated total assets; and the total liabilities amounting to $14,613,706 thousand and $15,948,386 thousand, constituting 10.27% and 10.64% of the consolidated total liabilities as of September 30, 2021 and 2020, respectively; as well as the total comprehensive income (loss) amounting to $1,263,867 thousand, $(198,203) thousand, $1,974,861 thousand and $(4,631,652) thousand, constituting 4.87%, (8.35)%, 2.95% and 16.27% of the consolidated total comprehensive income (loss) for the three months and nine months ended September 30, 2021 and 2020, respectively.

Furthermore, as stated in Note 6(f), the other equity accounted investments of the Group in its investee companies of $106,462,729 thousand and $100,058,010 thousand as of September 30, 2021 and 2020, respectively, and its equity in net earnings on these investee companies of $3,730,787 thousand, $618,500 thousand, $6,589,603 thousand and $950,338 thousand for the three months and nine months ended September 30, 2021 and 2020, respectively, were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

3-1

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as of September 30, 2021 and 2020, and of its consolidated financial performance for the three months and nine months ended September 30, 2021 and 2020, as well as its consolidated cash flows for the nine months ended September 30, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Other Matter

We did not review the financial statements of certain investee companies under the equity method of the Group. Those financial statements were reviewed by other auditors, whose review report has been furnished to us, and our conclusion, insofar as it relates to the amounts included for those, were based solely on the review report of other auditors. The financial statements of the investee companies reflect the total assets amounting to $105,003,430 thousand and $85,501,831 thousand, constituting 19.94% and 19.32% of the consolidated total assets as of September 30, 2021 and 2020, respectively, as well as the related shares of profit of associates and joint ventures accounted for using the equity method amounting to $3,093,340 thousand, $4,531,612 thousand, $12,118,250 thousand and $(427,712) thousand, constituting 13.74%, 40.53%, 18.60% and (3.82)% of the consolidated income before income tax for the three months and nine months then ended September 30, 2021 and 2020 respectively.

The engagement partners on the reviews resulting in this independent auditors’ review report are Hui-chih Kou and Chi-Lung Yu.

KPMG

Taipei, Taiwan (Republic of China) November 10, 2021

Notes to Readers

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

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with the generally accepted auditing standards as of September 30, 2021 and 2020

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

September 30, 2021, December 31 and September 30, 2020 (Expressed in Thousands of New Taiwan Dollars)

September 30, 2021 Assets Amount % Current assets: 1100 Cash and cash equivalents (Note 6(a)) $ 11,164,837 2 1110 Current financial assets at fair value through profit or loss (Note 6(b)) 3,814,798 1 1120 Current financial assets at fair value through other comprehensive income (Note 6(b)) 110,416,105 21 1150 Notes receivable (Notes 6(c)(r)) 4,916,226 1 1170 Accounts receivable, net (Notes 6(c)(r)) 12,250,415 2 1180 Accounts receivable－related parties (Notes 6(c)(r) and 7) 4,566,035 1 1200 Other receivables (Note 6(d)) 1,203,662 - 1210 Other receivables－related parties (Notes 6(d) and 7) 7,637,233 2 130X Inventories (Note 6(e)) 21,238,831 4 1470 Other current assets 4,743,908 1 Total current assets 181,952,050 35 Non-current assets: 1517 Financial assets at fair value through other comprehensive income-non-current (Note 6(b)) 24,155,179 5 1550 Investments accounted for using equity method (Note 6(f)) 211,466,159 40 1600 Property, plant and equipment (Note 6(g), 7 and 8) 95,098,739 18 1755 Right-of-use assets (Note 6(h)) 1,132,229 - 1780 Intangible assets 607,730 - 1840 Deferred tax assets 2,058,116 - 1900 Other non-current assets (Note 8) 10,091,642 2 Total non-current assets 344,609,794 65 Total assets $ 526,561,844 100	December 31, 2020 Amount % 14,145,110 3 3,888,883 1 102,218,948 21 2,148,261 1 10,372,878 2 3,439,213 1 936,148 - 6,499,202 1 16,681,271 4 5,305,846 1 165,635,760 35 18,647,715 4 193,979,093 40 86,785,954 18 1,147,126 - 590,274 - 2,859,857 1 9,634,644 2 313,644,663 65 479,280,423 100	September 30, 2020 Amount % 13,594,042 3 3,963,809 1 79,316,584 18 2,163,884 - 7,863,436 2 2,964,101 1 634,146 - 10,659,785 3 14,817,177 3 5,350,108 1 141,327,072 32 15,988,665 4 185,559,841 42 85,524,157 19 1,138,185 - 555,209 - 2,915,323 1 9,472,139 2 301,153,519 68 442,480,591 100 Liabilities and Equity Current liabilities: 2100 Short-term borrowings (Notes 6(i)) 2110 Short-term notes and bills payable (Note 6(j)) 2170 Accounts payable 2180 Accounts payable－related parties (Note 7) 2200 Other payables 2220 Other payables－related parties (Note 7) 2280 Current lease liabilities (Note 6(m)) 2321 Current portion of bonds payable (Note 6(l)) 2322 Current portion of long-term debts (Notes 6(k) and 8) 2399 Other current liabilities (Note 7) Total current liabilities Non-Current liabilities: 2530 Bonds payable (Note 6(l)) 2540 Long-term debts (Note 6(k) and 8). 2570 Deferred tax liabilities 2580 Non-current lease liabilities (Note 6(m)) 2622 Long-term accounts payable to related parties (Note 7) 2640 Net defined benefit liabilities-non-current 2670 Other non-current liabilities (Note 6(f)) Total non-current liabilities Total liabilities Equity (Note 6(p)): 3110 Common stock 3200 Capital surplus Retained earnings: 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Total retained earnings 3400 Other components of equity Total equity Total liabilities and equity	September 30, 2021		December 31, 2020		September 30, 2020
			Amount %		Amount %		Amount %
			$ 3,940,345 1 9,798,563 2 6,034,345 1 8,912,196 2 7,551,175 1 1,454,143 - 23,787 - 6,246,570 1 - - 16,286,611 3 60,247,735 11 40,509,672 8 3,368,151 - 18,631,867 4 129,732 - 13,375,680 3 5,892,580 1 113,544 - 82,021,226 16 142,268,961 27 63,657,408 12 11,772,431 2 67,780,313 13 71,352,267 14 90,328,172 17 229,460,752 44 79,402,292 15 384,292,883 73 $ 526,561,844 100		15,356,724 3 16,996,824 4 6,012,635 1 7,102,565 1 3,481,665 1 1,705,923 - 21,452 - 2,898,401 1 2,000,000 - 12,678,838 3 68,255,027 14 38,012,054 8 1,569,776 - 17,703,674 4 121,923 - 14,396,540 3 6,560,931 2 124,358 - 78,489,256 17 146,744,283 31 63,657,408 13 11,742,124 2 65,791,185 14 68,879,676 14 55,559,015 12 190,229,876 40 66,906,732 14 332,536,140 69 479,280,423 100		23,091,858 5 18,994,371 4 4,429,268 1 4,345,814 1 2,127,662 1 1,355,653 - 29,654 - 1,648,446 - 2,160,383 1 12,371,694 3 70,554,803 16 39,259,487 9 1,196,897 - 17,222,811 4 123,220 - 14,708,630 3 6,680,562 2 98,719 - 79,290,326 18 149,845,129 34 63,657,408 14 11,743,300 3 65,791,185 15 68,879,676 16 44,940,868 10 179,611,729 41 37,623,025 8 292,635,462 66 442,480,591 100

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and nine months ended September 30, 2021 and 2020

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

For the three months ended September 30,	For the three months ended September 30,	For the three months ended September 30,	For the three months ended September 30,	For the three months ended September 30,	For the nine months ended September 30, 2021 2020 Amount % Amount % 199,191,244 100 131,178,144 100 143,608,961 72 114,174,964 87 55,582,283 28 17,003,180 13 6,233,833 3 4,245,080 3 4,019,532 2 3,464,715 3 1,178,827 1 1,025,097 1 93,006 - (2,061) - 11,525,198 6 8,732,831 7 44,057,085 22 8,270,349 6 175,019 - 309,491 - 3,114,138 1 3,471,886 3 (287,502) - (395,990) - (609,877) - (974,417) (1) 18,707,853 9 522,626 1 21,099,631 10 2,933,596 3 65,156,716 32 11,203,945 9 10,650,955 5 1,877,483 2 54,505,761 27 9,326,462 7 13,615,585 7 (27,849,063) (21) 1,616,436 1 (6,505,306) (5) - - - - 15,232,021 8 (34,354,369) (26) (2,742,791) (1) (3,251,396) (3) (173,357) - (251,264) - (179,687) - (56,500) - (2,736,461) (1) (3,446,160) (3) 12,495,560 7 (37,800,529) (29) 67,001,321 34 (28,474,067) (22) Before After Before After 10.24 8.56 1.76 1.47	For the nine months ended September 30, 2021 2020 Amount % Amount % 199,191,244 100 131,178,144 100 143,608,961 72 114,174,964 87 55,582,283 28 17,003,180 13 6,233,833 3 4,245,080 3 4,019,532 2 3,464,715 3 1,178,827 1 1,025,097 1 93,006 - (2,061) - 11,525,198 6 8,732,831 7 44,057,085 22 8,270,349 6 175,019 - 309,491 - 3,114,138 1 3,471,886 3 (287,502) - (395,990) - (609,877) - (974,417) (1) 18,707,853 9 522,626 1 21,099,631 10 2,933,596 3 65,156,716 32 11,203,945 9 10,650,955 5 1,877,483 2 54,505,761 27 9,326,462 7 13,615,585 7 (27,849,063) (21) 1,616,436 1 (6,505,306) (5) - - - - 15,232,021 8 (34,354,369) (26) (2,742,791) (1) (3,251,396) (3) (173,357) - (251,264) - (179,687) - (56,500) - (2,736,461) (1) (3,446,160) (3) 12,495,560 7 (37,800,529) (29) 67,001,321 34 (28,474,067) (22) Before After Before After 10.24 8.56 1.76 1.47
2021			2020 Amount % 46,174,862 100 39,756,857 86 6,418,005 14 1,449,665 3 1,265,781 3 346,429 1 (1,822) - 3,060,053 7 3,357,952 7 80,004 - 3,390,540 8 (530,656) (1) (266,561) (1) 5,150,112 11 7,823,439 17 11,181,391 24 830,616 2 10,350,775 22 (6,397,297) (14) (558,698) (1) - - (6,955,995) (15) (696,778) (2) (164,030) - 160,363 - (1,021,171) (2) (7,977,166) (17) 2,373,609 5 Before After		2021 Amount % 199,191,244 100 143,608,961 72 55,582,283 28 6,233,833 3 4,019,532 2 1,178,827 1 93,006 - 11,525,198 6 44,057,085 22 175,019 - 3,114,138 1 (287,502) - (609,877) - 18,707,853 9 21,099,631 10 65,156,716 32 10,650,955 5 54,505,761 27 13,615,585 7 1,616,436 1 - - 15,232,021 8 (2,742,791) (1) (173,357) - (179,687) - (2,736,461) (1) 12,495,560 7 67,001,321 34 Before After 10.24 8.56
	Before		Before		Before 10.24	Before 1.76
$ 3.54		3.03	1.76	1.63

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Statements of Changes in Equity

For the nine months ended September 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

			Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent	Equity attributable to owners of parent		Total equity
	Share capital	Capital surplus		R	etained earnings Special reserve Unappropriate d retained earnings 63,968,902 72,320,189 - 9,326,462 - - - 9,326,462 - (3,732,416) 4,910,774 (4,910,774) - (28,009,259) - (53,334) - - - - 68,879,676 44,940,868 68,879,676 55,559,015 - 54,505,761 - - - 54,505,761 - (1,989,128) 2,472,591 (2,472,591) - (15,277,778) - 2,893 - - - - 71,352,267 90,328,172	Total	other equity inte
						Exchange differences on translation of foreign financial statements (5,278,250) - (3,493,535) (3,493,535) - - - - - - (8,771,785) (9,603,060) - (2,713,308) (2,713,308) - - - - - - (12,316,368)	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 80,701,025 - (34,354,369) (34,354,369) - - - - - - 46,346,656 76,471,804 - 15,232,021 15,232,021 - - - - - - 91,703,825
	Ordinary shares		Legal reserve		Special reserve 63,968,902 - - - - 4,910,774 - - - - 68,879,676 68,879,676 - - - - 2,472,591 - - - - 71,352,267
$ 63,657,408 - - - - - - - - - $ 63,657,408 $ 63,657,408 - - - - - - - - - $ 63,657,408	$ 63,657,408	11,724,498	62,058,769					349,153,320
	- -	- -	- -					9,326,462 (37,800,529)
	-	-	-					(28,474,067)
	- - - - - -	- - - - 5,415 13,387	3,732,416 - - - - -					- - (28,009,259) (53,334) 5,415 13,387
		11,743,300	65,791,185					292,635,462
		11,742,124	65,791,185					332,536,140
		- -	- -					54,505,761 12,495,560
		-	-					67,001,321
		- - - - 97 30,210	1,989,128 - - - - -					- - (15,277,778) 2,893 97 30,210
		11,772,431	67,780,313					384,292,883

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the nine-month periods ended September 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Income before income tax Adjustments: Adjustments to reconcile profit (loss): Depreciation expense Amortization expense Expected credit loss (gain) Interest expense Interest income Dividend income Share of profit of associates and joint ventures accounted for using equity method Gain on disposal of property, plant and equipment Net loss on financial assets at fair value through profit or loss Unrealized foreign exchange gain Total adjustments to reconcile (profit) loss Changes in operating assets and liabilities: Changes in operating assets: Notes receivable Accounts receivable Accounts receivable due from related parties Other receivables Other receivables due from related parties Inventories Other current assets Total changes in operating assets Changes in operating liabilities: Accounts payable Accounts payable to related parties Other payables Other payables to related parties Other current liabilities Net defined benefit liability Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Dividends received Interest paid Income taxes paid Net cash flows from operating activities Cash flows from (used in) investing activities: Acquisition of financial assets at fair value through other comprehensive income Proceeds from capital reduction of financial assets at fair value through other comprehensive income Acquisition of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Acquisition of intangible assets (Increase)Decrease in other receivables due from related parties Increase in other non-current assets Net cash flows used in investing activities Cash flows from (used in) financing activities: Increase in short-term borrowings Decrease in short-term borrowings (Decrease)Increase in short-term notes and bills payable Proceeds from issuing bonds Repayments of bonds Proceeds from long-term debt Repayments of long-term debt Decrease in due to related parties (recognized as other payables－related parties) Payment of lease liabilities Decrease in other non-current liabilities Cash dividends paid Net cash flows (used in) from financing activities Effect of exchange rate changes on cash and cash equivalents Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period		For the nine-month periods ended September 30, 2021 2020 $ 65,156,716 11,203,945 5,462,972 5,365,611 714,388 347,901 93,006 (2,061) 609,877 974,417 (175,019) (309,491) (2,998,842) (3,357,806) (18,707,853) (522,626) (7,172) (8,301) 74,085 80,547 (130,129) (36,878) (15,064,687) 2,531,313 (2,767,965) 420,806 (1,840,273) (441,199) (1,126,823) 597,915 (276,041) 368,387 90,813 (275,760) (4,786,994) 3,309,536 561,938 (1,881,698) (10,145,345) 2,097,987 21,709 213,832 1,809,632 (2,317,632) (99,203) 436,470 (251,780) (1,087,332) 3,607,774 (312,220) (668,352) (230,144) 4,419,780 (3,297,026) (5,725,565) (1,199,039) (20,790,252) 1,332,274 44,366,464 12,536,219 175,003 303,972 5,258,401 11,694,506 (608,138) (971,590) (4,550,937) (1,953,281) 44,640,793 21,609,826 (91,000) - - 12,500 (1,387,981) - (14,449,161) (5,987,161) 26,652 13,829 (61,753) (171,063) (1,220,301) 4,407,605 (1,138,913) (2,151,777) (18,322,457) (3,876,067) 159,423,343 256,577,635 (170,832,066) (253,734,871) (7,200,000) 4,000,000 7,500,000 8,350,000 (1,650,000) - 1,834,214 1,189,939 (2,000,000) (4,435,919) (417,919) (6,131,284) (24,854) (28,453) (47,821) (112,607) (15,280,113) (28,011,235) (28,695,216) (22,336,795) (603,393) 31,126 (2,980,273) (4,571,910) 14,145,110 18,165,952 $ 11,164,837 13,594,042	For the nine-month periods ended September 30, 2021 2020 $ 65,156,716 11,203,945 5,462,972 5,365,611 714,388 347,901 93,006 (2,061) 609,877 974,417 (175,019) (309,491) (2,998,842) (3,357,806) (18,707,853) (522,626) (7,172) (8,301) 74,085 80,547 (130,129) (36,878) (15,064,687) 2,531,313 (2,767,965) 420,806 (1,840,273) (441,199) (1,126,823) 597,915 (276,041) 368,387 90,813 (275,760) (4,786,994) 3,309,536 561,938 (1,881,698) (10,145,345) 2,097,987 21,709 213,832 1,809,632 (2,317,632) (99,203) 436,470 (251,780) (1,087,332) 3,607,774 (312,220) (668,352) (230,144) 4,419,780 (3,297,026) (5,725,565) (1,199,039) (20,790,252) 1,332,274 44,366,464 12,536,219 175,003 303,972 5,258,401 11,694,506 (608,138) (971,590) (4,550,937) (1,953,281) 44,640,793 21,609,826 (91,000) - - 12,500 (1,387,981) - (14,449,161) (5,987,161) 26,652 13,829 (61,753) (171,063) (1,220,301) 4,407,605 (1,138,913) (2,151,777) (18,322,457) (3,876,067) 159,423,343 256,577,635 (170,832,066) (253,734,871) (7,200,000) 4,000,000 7,500,000 8,350,000 (1,650,000) - 1,834,214 1,189,939 (2,000,000) (4,435,919) (417,919) (6,131,284) (24,854) (28,453) (47,821) (112,607) (15,280,113) (28,011,235) (28,695,216) (22,336,795) (603,393) 31,126 (2,980,273) (4,571,910) 14,145,110 18,165,952 $ 11,164,837 13,594,042
		2021 $ 65,156,716 5,462,972 714,388 93,006 609,877 (175,019) (2,998,842) (18,707,853) (7,172) 74,085 (130,129) (15,064,687) (2,767,965) (1,840,273) (1,126,823) (276,041) 90,813 (4,786,994) 561,938 (10,145,345) 21,709 1,809,632 (99,203) (251,780) 3,607,774 (668,352) 4,419,780 (5,725,565) (20,790,252) 44,366,464 175,003 5,258,401 (608,138) (4,550,937) 44,640,793 (91,000) - (1,387,981) (14,449,161) 26,652 (61,753) (1,220,301) (1,138,913) (18,322,457) 159,423,343 (170,832,066) (7,200,000) 7,500,000 (1,650,000) 1,834,214 (2,000,000) (417,919) (24,854) (47,821) (15,280,113) (28,695,216) (603,393) (2,980,273) 14,145,110 $ 11,164,837

			5,365,611 347,901 (2,061) 974,417 (309,491) (3,357,806) (522,626) (8,301) 80,547 (36,878)
			2,531,313
			420,806 (441,199) 597,915 368,387 (275,760) 3,309,536 (1,881,698)
			2,097,987
			213,832 (2,317,632) 436,470 (1,087,332) (312,220) (230,144)
			(3,297,026)
			(1,199,039)
			1,332,274
			12,536,219 303,972 11,694,506 (971,590) (1,953,281)
			21,609,826
			- 12,500 - (5,987,161) 13,829 (171,063) 4,407,605 (2,151,777)
			(3,876,067)
			256,577,635 (253,734,871) 4,000,000 8,350,000 - 1,189,939 (4,435,919) (6,131,284) (28,453) (112,607) (28,011,235)
			(22,336,795)
			31,126
			(4,571,910) 18,165,952
			13,594,042

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

September 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

Formosa Plastics Corporation (the “Company”) was incorporated on November 5, 1954, and established its factories in Kaohsiung City. The Company and its subsidiaries (the “ Group” ) engages in the manufacture and sale of plastic raw materials, chemical fibers, and petrochemical products. The Company has gone through several capital increases and established many divisions, and become a well-diversified enterprise.

(2) Approval date and procedures of the consolidated financial statements:

The accompanying consolidated financial statements of the Group as of and for the three months and nine months ended 2021 were authorized for issue by the board of directors on November 10, 2021.

(3) New standards, amendments and interpretations adopted:

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

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

●Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9”
●Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform— Phase 2”
●Amendments to IFRS 16 “Covid-19-Related Rent Concessions beyond June 30, 2021”
(b) The impact of IFRS issued by the FSC but not yet effective

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

－
●Amendments to IAS 16 “Property, Plant and Equipment Proceeds before Intended Use”
－
●Amendments to IAS 37 “Onerous Contracts Cost of Fulfilling a Contract”
●Annual Improvements to IFRS Standards 2018–2020
●Amendments to IFRS 3 “Reference to the Conceptual Framework”

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or
Interpretations
Amendments to IAS 1
“Classification of Liabilities
as Current or Non-current”
Amendments to IAS 1
“Disclosure of Accounting
Policies”
Amendments to IAS 8
“Definition of Accounting
Estimates”

Content of amendment
Effective date per
IASB
The
amendments
aim
to
promote
consistency in applying the requirements
by helping companies determine whether,
in the statement of balance sheet, debt and
other
liabilities
with
an
uncertain
settlement date should be classified as
current (due or potentially due to be settled
within one year) or non-current. The
amendments
include
clarifying
the
classification requirements for debt a
company might settle by converting it into
equity.
January 1, 2023
The key amendments to IAS 1 include:
●requiring companies to disclose their
material accounting policies rather than
their significant accounting policies;
●clarifying
that
accounting
policies
related to immaterial transactions, other
events or conditions are themselves
immaterial and as such need not be
disclosed; and
●clarifying
that
not
all
accounting
policies
that
relate
to
material
transactions, other events or conditions
are themselves material to a company’s
financial statements.
January 1, 2023
The
amendments
introduce
a
new
definition
for
accounting
estimates:
clarifying that they are monetary amounts
in the financial statements that are subject
to measurement uncertainty.
The
amendments
also
clarify
the
relationship between accounting policies
and accounting estimates by specifying that
a company develops an accounting estimate
to achieve the objective set out by an
accounting policy.
January 1, 2023

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

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

●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”
●Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

(4) Summary of significant accounting policies:

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the preparation and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS endorsed by the FSC) for a complete set of the annual consolidated financial statements.

Except the following accounting policies mentioned below, the significant accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended 31, 2020. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2020.

(b) Basis of consolidation
(i) List of subsidiaries in the consolidated interim financial statements:

Investor	Name of subsidiaries	Business activity	Percentage of Ownership (%) September 30, 2021 December 31, 2020 September 30, 2020 Note % 100 % 100 % 100 % 100 % 100 % 100 (Note 1) % - % - % 100 (Note 1.2) % 100 % 100 % 100 % 100 % 100 % 100	Percentage of Ownership (%) September 30, 2021 December 31, 2020 September 30, 2020 Note % 100 % 100 % 100 % 100 % 100 % 100 (Note 1) % - % - % 100 (Note 1.2) % 100 % 100 % 100 % 100 % 100 % 100
			September 30, 2021	December 31, 2020 % 100 % 100 % - % 100 % 100
The Company The Company The Company Formosa Plastics Corporation (Cayman) Limited Formosa Industries (Hong Kong) Limited	Formosa Plastics Corporation (Cayman) Limited Formosa Industries Corporation U.S.A Formosa Plastics International (Cayman) Limited Formosa Industries (Hong Kong) Limited Formosa Industries (Ningbo) Co., Ltd.	Investment High Density Polyethylene Investment Investment Plastics	% 100 % 100 % - % 100 % 100

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Investor	Name of subsidiaries	Business activity	Percentage of Ownership (%) September 30, 2021 December 31, 2020 September 30, 2020 Note % 100 % 100 % 100	Percentage of Ownership (%) September 30, 2021 December 31, 2020 September 30, 2020 Note % 100 % 100 % 100
			September 30, 2021	December 31, 2020 % 100
Formosa Industries (Hong Kong) Limited	Formosa Electronic (Ningbo) Co., Ltd.	Electronics	% 100

Note1: The immaterial subsidiaries’ financial statements for the nine-month periods ended September 30, 2021 and 2020 have not been reviewed by independent auditors.

Note2: Formosa Plastics International (Cayman) Limited was liquidated on November 19, 2020.

(ii) Subsidiary not included in the consolidated financial statements: None.

(c) Employee Benefits

Pension cost for an interim period is calculated on a year-to-date basis by using the actuarially determined pension cost rate at the end of prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events.

(d) Income Tax

The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Financial Reporting Standards 34, Interim Reporting.

Income tax expenses for the period are best estimated by multiplying pre-tax income for the interim reporting period by the effective annual tax rate as forecasted by the management. and allocated to current and deferred taxes based on its proportionate size).

For a change in tax rate that is substantively enacted in an interim period, the effect of the change immediately should be recognized in the interim period in which the change occurs.

Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled and recognized directly in equity or other comprehensive income as tax expense.

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

The preparation of the consolidated financial statements in conformity with the Regulations and IFRSs (in accordance with IAS 34 “Interim Financial Reporting” and endorsed by the FSC) requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Except for the following, the preparation of the consolidated interim financial statements, estimates and underlying assumptions were reviewed on an ongoing basis in are in conformity with the consolidated financial statements for the year ended December 31, 2020. For related information, please refer to note 5 of the 2020 consolidated financial statements.

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The accounting policies involved significant judgments and the information that have significant effect on the amounts recognized in the consolidated financial statements are as below:

(a) Judgment of whether the Group has substantive control over Formosa Petrochemical Corporation

The Group holds 28.56% outstanding ordinary shares of Formosa Petrochemical Corporation, who has a total number of 15 directors in its board, including 2 seats representing the Group. Although the Group is the biggest shareholder of Formosa Petrochemical Corporation, the Group does not have definite control on its overall operating related activities. Therefore, it is determined that the Group has no control over Formosa Petrochemical Corporation.

(b) Judgment of whether the Group has substantive control over Formosa Heavy Industries Corporation

The Group holds 32.92% outstanding ordinary shares of Formosa Heavy Industries Corporation, who has a total number of 7 directors in its board, with the Group obtaining none of the seats, but having only one supervisor serving as its representative. Although the Group is the biggest shareholder of Formosa Heavy Industries Corporation, the Group does not have definite control on its overall operating related activities. Therefore, it is determined that the Group has no control over Formosa Heavy Industries Corporation.

The Group holds 50.00% outstanding shares of Sky Dragon Investments Limited, which has only 1 director who is not connected with the Group. Although the Group is the biggest shareholder of Sky Dragon Investments Limited, the Group does not have definite control on its overall operating related activities. Therefore, it is determined that the Group has no control over Sky Dragon Investments Limited.

(6) Explanation of significant accounts:

Except for the following disclosures, there is no significant difference as compared with those disclosed in the consolidated financial statements for the year ended December 31, 2020. Please refer to Note 6 of the 2020 annual consolidated financial statements

(a) Cash and cash equivalents

Cash on hand Bank deposit Cash equivalents Cash equivalents－Time deposits Repurchase bonds	September 30, 2021 $ 287 3,386,355 7,778,195 - $ 11,164,837	December 31, 2020 312 4,051,549 9,214,840 878,409 14,145,110	September 30, 2020
			546 2,245,599 10,453,533 894,364
			13,594,042

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Financial assets at fair value through profit or loss and other comprehensive income

September 30, 2021 December 31, 2020 (i) Mandatorily at FVTPL Private fund $ 3,814,798 3,888,883 Please refer to Notes 6(t) for amount of remeasurement at FVTPL. September 30, 2021 December 31, 2020 (ii) Equity investments at fair value through other comprehensive income Listed stocks $ 110,416,105 102,218,948 Non-listed stocks 5,776,346 4,708,593 Non-domestic stocks 18,378,833 13,939,122 Total $ 134,571,284 120,866,663	September 30, 2020
	3,963,809
	September 30, 2020
	79,316,584 4,062,824 11,925,841
	95,305,249

Equity investments at fair value through other comprehensive income.

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

On July 1, 2020, Guangyuan Investment Corp., a non-listed (cabinet) company, reduced its capital by 25%, resulting in the Group to receive the amount of $12,500 thousand on July 30, 2020, with its shareholding ratio remains unchanged.

On May 12, 2021, the Group approved to obtain 1,300 thousand shares of PuriBlood Medical Co., Ltd., a domestic non-listed (cabinet) company, at a par value of $70 per share, amounting to $91,000 thousand, with the shareholding ratio of 9.14%.

No strategic investments were disposed as of September 30, 2021 and 2020, and there were no transfers of any cumulative gain or loss within equity relating to these investments.

Notes receivable from operating activities Accounts receivable (including related parties) Less : allowance for doubtful receivables	September 30, 2021 $ 4,916,226 16,910,940 (94,490) $ 21,732,676	December 31, 2020 2,148,261 13,813,715 (1,624) 15,960,352	September 30, 2020 2,163,884 10,828,664 (1,127) 12,991,421

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables on September 30, 2021, December 31 and September 30, 2020. To measure the expected credit losses, accounts receivables have been grouped based on shared credit risk characteristics and the days past due, as well as the incorporated forwardlooking information. The loss allowance provision were determined as follows:

September 30, 2021	September 30, 2021
Gross carrying amount Weighted- average loss rate $ 20,736,640 0.143% 932,745 2.887% 122,685 18.758% 35,096 42.284% $ 21,827,166 December 31, 2020		Loss allowance provision
		29,709 26,928 23,013 14,840
		94,490

		Loss allowance provision
		80 1,309 234 1
		1,624

	Weighted- average loss rate 0.001% 0.194% 1.502% 3.091%	Loss allowance provision
		49 829 248 1
		1,127

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The movement of the allowance for doubtful receivable was as follows:

Beginning balance Impairment losses recognized Impairment losses reversed Foreign exchange gains Ending balance	For the nine months ended September 30,	For the nine months ended September 30,
	2021 $ 1,624 93,006 - (140) $ 94,490	2020 3,188 - (2,061) - 1,127

The Group entered into a factoring and financing agreement (without-recourse) with a financial institution. According to the contract, the net accounts receivable that have matured but are still uncollected will be paid by the financial institution, except for those affected by trade disputes. As of September 30, 2021, the outstanding accounts receivable factoring transaction between the Group and the financial institution was as follows:

KC de Mexico			September 30, 2021	September 30, 2021
	Purchaser	Factoring Balance Factoring Line USD 1,165,200 USD 4,991,217		Advanced Amount -	Range of Interest Rate Guarantee project - None
	CITIBANK

(d) Other receivables

Other receivables—loans to related parties Other receivables—related parties Other receivables	September 30, 2021 $ 5,712,426 1,924,807 1,203,662 $ 8,840,895	December 31, 2020 4,492,125 2,007,077 936,148 7,435,350	September 30, 2020
			8,584,356 2,075,429 634,146
			11,293,931

As of September 30, 2021, December 31 and September 30, 2020, the aging analysis of other receivables were not recognized which estimated by the Group.

(e) Inventories

Finished goods Work in process Raw materials Supplies Machinery and accessories in process Others	September 30, 2021 $ 11,788,215 1,939,899 4,160,682 282,328 3,056,589 11,118 $ 21,238,831	December 31, 2020 8,834,651 1,407,913 3,358,022 294,201 2,775,208 11,276 16,681,271	September 30, 2020
			7,795,519 1,244,985 2,339,628 696,963 2,690,879 49,203
			14,817,177

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Change of net realizable value of inventories：

Gain from recovery of inventories	For the three months ended September 30, 2021 2020 $ (39,791) (103,581)		For the nine months ended September 30,	For the nine months ended September 30,
	2021 $ (39,791)		2021 (127,805)	2020 (769,908)

The changes in net realizable value of the above inventories have been recognized as cost of goods sold.

(f) Investments accounted for using equity method

The components of the investments accounted for using equity method were as follows:

Associates Formosa Petrochemical Corporation Formosa Plastics Corp., U.S.A. Formosa Heavy Industries Corp. Sky Dragon Investments Limited Mai Liao Power Corp. Formosa Sumco Technology Corporation Formosa Transportation Corp. Formosa Fairway Corp. Yi-Jih Development Corp. Ya Tai Development Corp. Formosa Automobile Corporation Wha Ya Park Management Consulting Corporation Ltd. Formosa Environmental Technology Corporation Formosa Resources Corporation Formosa Plastics Construction Corporation Formosa Group (Cayman) Limited Formosa Olefins, L.L.C. Lolita Packaging, L.L.C. Joint ventures Formosa Asahi Spandex Co., Ltd. Formosa Daikin Advanced Chemical Co., Ltd. Formosa Mitsui Advanced Chemical Co., Ltd. Formosa Tokuyama Advanced Chemicals Co., Ltd.	September 30, 2021 $ 99,042,895 64,024,126 7,146,841 4,374,606 12,567,737 5,960,535 1,204,510 53,705 19,696 17,956 412,564 3,032 228,959 7,085,754 581,770 656,844 4,810,254 - 1,398,573 1,323,940 91,042 460,820 $ 211,466,159	December 31, 2020 87,874,676 61,291,795 7,017,408 4,723,141 12,415,495 5,912,495 1,136,716 68,246 20,159 18,098 259,334 3,029 227,327 6,169,287 568,402 649,229 2,892,722 108,322 1,288,207 1,210,071 - 124,934 193,979,093	September 30, 2020
			79,678,050 62,281,272 7,144,523 4,696,540 11,701,242 5,823,781 1,111,923 75,287 63,681 18,138 262,086 2,539 226,649 6,616,015 70,115 660,686 2,566,979 139,820 1,251,504 1,169,011 - -
			185,559,841

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group’s shares of net income (loss) of associates and joint ventures were as follows:

Associates Formosa Petrochemical Corporation Formosa Plastics Corp., U.S.A. Formosa Heavy Industries Corp. Sky Dragon Investment Limited Mai Liao Power Corp. Formosa Sumco Technology Corporation Formosa Transportation Corp. Formosa Fairway Corp. Yi-Jih Development Corp. Ya Tai Development Corp. Formosa Automobile Corporation Wha Ya Park Management Consulting Corporation Ltd. Formosa Environmental Technology Corporation Formosa Resources Corporation Formosa Plastics Construction Corporation Formosa Group (Cayman) Limited Formosa Olefins, L.L.C. Lolita Packaging, L.L.C.	For the three months ended September 30,	For the three months ended September 30,
	2021 $ 2,969,116 2,494,200 31,134 (65,552) 85,217 124,224 19,868 (3,239) (1) (45) 55,865 1 452 4,744 (2,477) 10,328 1,062,583 (41,006)	2020

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the three months ended September 30,	For the three months ended September 30,	For the nine months ended September 30,	For the nine months ended September 30,
2021 $ 58,902 32,184 3,916 (16,287) $ 6,824,127	2020	2021 160,992 113,869 (11,632) (39,114) 18,707,853	2020
	11,086 50,073 (7,431) - 5,150,112		19,173 150,377 (29,887) -
			522,626

(i) Associates
1) The information of the major associate of the investments accounted for using the equity method was as follows:

Associates Formosa Petrochemical Corporation Formosa Plastics Corp., U.S.A.	Relationship	Registration Country	Percentage of ownership	Percentage of ownership
			September 30, 2021	December 31, 2020 September 30, 2020 % 28.56 % 28.56 % 22.66 % 22.66
	Formosa Petrochemical Corporation, the supplier of raw materials for the Group, engages in the manufacturing and sales of petroleum products and petrochemical raw materials. Formosa Plastics Corp., U.S.A, engages in the manufacturing and sales of oil, plastic raw materials, and petrochemical raw materials, and is also the sales target of the Group.	Taiwan U.S.A	% 28.56 % 22.66

The fair value of investments in publicly traded stocks of the major associate was as follows:

Formosa Petrochemical Corporation	September 30, 2021 $ 269,878,462	December 31, 2020 271,510,791	September 30, 2020
			217,643,921

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The aggregated financial information of the major associate was as follows:

The financial information of Formosa Petrochemical Corporation was as follows:

September 30, 2021 Current assets $ 272,502,030 Non-current assets 169,798,722 Current liabilities (51,468,059) Non-current liabilities (38,834,108) Net asset $ 351,998,585 Net asset contributed to non-controlling interest of Formosa Petrochemical Corporation $ 4,380,725 Net asset contributed to Formosa Petrochemical Corporation $ 347,617,860 For the three months ended September 30, 2021 2020 Revenue $ 164,005,347 93,951,631 Net (loss) income $ 10,281,145 15,812,459 Other comprehensive income (loss) 2,828,778 (3,258,441) Total comprehensive income (loss) $ 13,109,923 12,554,018 Comprehensive loss allocated to non-controlling interest of Formosa Petrochemical Corporation $ (10,283) (122,462) Comprehensive income (loss) allocated to Formosa Petrochemical Corporation $ 13,120,206 12,676,480	September 30, 2021 Current assets $ 272,502,030 Non-current assets 169,798,722 Current liabilities (51,468,059) Non-current liabilities (38,834,108) Net asset $ 351,998,585 Net asset contributed to non-controlling interest of Formosa Petrochemical Corporation $ 4,380,725 Net asset contributed to Formosa Petrochemical Corporation $ 347,617,860 For the three months ended September 30, 2021 2020 Revenue $ 164,005,347 93,951,631 Net (loss) income $ 10,281,145 15,812,459 Other comprehensive income (loss) 2,828,778 (3,258,441) Total comprehensive income (loss) $ 13,109,923 12,554,018 Comprehensive loss allocated to non-controlling interest of Formosa Petrochemical Corporation $ (10,283) (122,462) Comprehensive income (loss) allocated to Formosa Petrochemical Corporation $ 13,120,206 12,676,480	September 30, 2021 Current assets $ 272,502,030 Non-current assets 169,798,722 Current liabilities (51,468,059) Non-current liabilities (38,834,108) Net asset $ 351,998,585 Net asset contributed to non-controlling interest of Formosa Petrochemical Corporation $ 4,380,725 Net asset contributed to Formosa Petrochemical Corporation $ 347,617,860 For the three months ended September 30, 2021 2020 Revenue $ 164,005,347 93,951,631 Net (loss) income $ 10,281,145 15,812,459 Other comprehensive income (loss) 2,828,778 (3,258,441) Total comprehensive income (loss) $ 13,109,923 12,554,018 Comprehensive loss allocated to non-controlling interest of Formosa Petrochemical Corporation $ (10,283) (122,462) Comprehensive income (loss) allocated to Formosa Petrochemical Corporation $ 13,120,206 12,676,480	December 31, 2020 September 30, 2020 215,309,819 182,911,613 165,613,297 165,737,067 (28,887,601) (24,879,786) (39,408,447) (39,748,419) 312,627,068 284,020,475 4,525,709 4,614,817 308,101,359 279,405,658 For the nine months ended September 30, 2021 2020 439,227,658 311,412,518 41,758,517 (2,864,530) 3,242,076 (20,544,067) 45,000,593 (23,408,597) (137,969) (215,710) 45,138,562 (23,192,887)
	2020		2021 439,227,658 41,758,517 3,242,076 45,000,593 (137,969) 45,138,562
	93,951,631

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Beginning balance of investments in major associate at January 1 Total comprehensive income (loss) allocated to the Company Dividend Received Share of net assets of affiliates as of September 30 Add: share premium acquired not according to holding percentage Add: Net adjustment Total carrying amount of equity of the major associate as of September 30	For the nine months ended September 30, 2021 2020 $ 87,874,676 94,112,087 12,770,353 (6,496,512) (1,605,124) (7,889,592) 99,039,905 79,725,983 97 5,401 2,893 (53,334) $ 99,042,895 79,678,050
	2021 $ 87,874,676 12,770,353 (1,605,124) 99,039,905 97 2,893 $ 99,042,895

The financial information of Formosa Plastics Corp., U.S.A. was as follows:

September 30, 2021 Current assets $ 98,272,985 Non-current assets 248,309,006 Current liabilities (19,539,879) Non-current liabilities (34,446,552) Net asset $ 292,595,560 Net asset contributed to non-controlling interest of Formosa Plastics Corp., U.S.A. $ 10,013,894 Net asset contributed to Formosa Plastics Corp., U.S.A. $ 282,581,666 For the three months ended September 30, 2021 2020 Revenue $ 53,764,252 24,264,679 Net income (loss) $ 12,711,767 (1,970,165) Other comprehensive loss (92,373) (5,076,825) Total comprehensive income (loss) $ 12,619,394 (7,046,990) Comprehensive income allocated to non-controlling interest of Formosa Plastics Corp., U.S.A. $ 1,703,589 418,019	September 30, 2021 Current assets $ 98,272,985 Non-current assets 248,309,006 Current liabilities (19,539,879) Non-current liabilities (34,446,552) Net asset $ 292,595,560 Net asset contributed to non-controlling interest of Formosa Plastics Corp., U.S.A. $ 10,013,894 Net asset contributed to Formosa Plastics Corp., U.S.A. $ 282,581,666 For the three months ended September 30, 2021 2020 Revenue $ 53,764,252 24,264,679 Net income (loss) $ 12,711,767 (1,970,165) Other comprehensive loss (92,373) (5,076,825) Total comprehensive income (loss) $ 12,619,394 (7,046,990) Comprehensive income allocated to non-controlling interest of Formosa Plastics Corp., U.S.A. $ 1,703,589 418,019	September 30, 2021 Current assets $ 98,272,985 Non-current assets 248,309,006 Current liabilities (19,539,879) Non-current liabilities (34,446,552) Net asset $ 292,595,560 Net asset contributed to non-controlling interest of Formosa Plastics Corp., U.S.A. $ 10,013,894 Net asset contributed to Formosa Plastics Corp., U.S.A. $ 282,581,666 For the three months ended September 30, 2021 2020 Revenue $ 53,764,252 24,264,679 Net income (loss) $ 12,711,767 (1,970,165) Other comprehensive loss (92,373) (5,076,825) Total comprehensive income (loss) $ 12,619,394 (7,046,990) Comprehensive income allocated to non-controlling interest of Formosa Plastics Corp., U.S.A. $ 1,703,589 418,019	December 31, 2020 September 30, 2020 80,388,030 63,913,270 253,057,520 252,816,316 (23,145,830) (12,492,464) (32,655,356) (23,007,324) 277,644,364 281,229,798 7,132,376 6,718,246 270,511,988 274,511,552 For the nine months ended September 30, 2021 2020 129,763,439 72,268,011 21,350,824 (2,556,116) (6,226,893) (9,365,598) 15,123,931 (11,921,714) 3,064,759 814,743
	2020		2021 129,763,439 21,350,824 (6,226,893) 15,123,931 3,064,759
	24,264,679

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

		For the three months ended	For the three months ended		For the nine months ended	For the nine months ended
		September 30,			September 30,
		2021	2020		2021	2020
Comprehensive
income (loss)
allocated to
Formosa Plastics
Corp., U.S.A.	$	10,915,805	(7,465,009)		12,059,172	(12,736,457)
					For the nine months ended
					September 30
					2021	2020
Beginning balance of investments in major associate at				$	61,291,795	65,167,060
January 1
Total comprehensive	income allocated to the Group				2,732,331	(2,885,788)
Total carrying amount of equity of the major associate as of
September 30				$	64,024,126	62,281,272

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

September 30, 2021 Carrying amount of individually insignificant associates’ equity $ 45,124,763 For the three months ended September 30, 2021 2020 Attributable to the Group: Net income $ 1,282,096 1,184,674 Other comprehensive income (loss) 563,705 172,200 Total comprehensive income $ 1,845,801 1,356,874	September 30, 2021	September 30, 2021		December 31, 2020 September 30, 2020 42,189,410 41,180,004 For the nine months ended September 30, 2021 2020 2,521,355 1,867,102 108,050 (1,140,251) 2,629,405 726,851
		2020		2021 2,521,355 108,050 2,629,405
		1,184,674 172,200
		1,356,874

3) On March 10, 2021, the Group participated in the capital increase by cash of Formosa Resources Corporation, an associate owned by the Group, with the total investment amounting to USD31,250 thousand (equivalent to $884,531 thousand) based on its original shareholding ratio of 25%.

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

4) The Group invested in “Lolita Packaging, L.L.C” (an investee accounted for using the equity method) and recognized the losses of $41,006 thousand and $132,083 thousand for the three months and the nine months ended September 30, 2021, respectively. As of September 30, 2021, the Group’ s cumulative losses from the above investment had already exceeded the book value by $25,226 thousand as the Group intends to support this investee company, resulting in the Group to reclassify the investment to other noncurrent liabilities.

(ii) Joint ventures

1) The Group’ s financial information for investments in individually insignificant joint venture accounted for using equity method at the reporting date was as follows. This financial information is included in the consolidated financial statements.

September 30, 2021 Individually insignificant joint venture $ 3,274,375 For the three months ended September 30, 2021 2020 Attributable to the Group: Net income $ 78,715 53,728 Other comprehensive loss (477) (169) Total comprehensive income $ 78,238 53,559	September 30, 2021 Individually insignificant joint venture $ 3,274,375 For the three months ended September 30, 2021 2020 Attributable to the Group: Net income $ 78,715 53,728 Other comprehensive loss (477) (169) Total comprehensive income $ 78,238 53,559	September 30, 2021	September 30, 2021		December 31, 2020 September 30, 2020 2,623,212 2,420,515 For the nine months ended September 30, 2021 2020 224,115 139,663 (9) (207) 224,106 139,456
	2021 $ 78,715 (477) $ 78,238		2020		2021 224,115 (9) 224,106

2) On May 12, 2021, the Group participated in the cash capital increase of Formosa Tokuyama Co., Ltd., an joint venture owned by the Group, with the total investment amounting to $375,000 thousand based on its original shareholding ratio of 50%.
3) On July 12, 2021, the Group participated in the cash capital increase of Formosa Mitsui Advanced Chemical Co., Ltd., an joint venture owned by the Group, with the total investment amounting to USD4,600 thousand (equivalent to $128,450 thousand) based on its original shareholding ratio of 50%.
4) The Group invested in “ Formosa Mitsui Advanced Chemical Co., Ltd.” (an investee accounted for using the equity method) and recognized the losses of $7,431 thousand and $29,887 thousand from this investment for the three months and the nine months ended September 30, 2021. As of September 30, 2021, the Group’ s cumulative losses from the above investment had already exceeded the book value by $13,839 thousand as the Group intends to support this investee company, resulting in the Group to reclassify the investment to other non-current liabilities.

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Collaterals

There are no investments accounted for using the equity method which were pledged to banks as collateral to secure the Group’s bank loans as of September 30, 2021, December 31 and September 30, 2020.

(iv) The share of profit or loss and other comprehensive income of those investments accounted for using equity method, except that Formosa Petrochemical Corporation and Formosa Sumco Technology Corporation are calculated based on financial statements reviewed by CPA, is calculated based on unreviewed financial statements.

(g) Property, plant and equipment

The movements of cost and accumulated depreciation and impairments of property, plant and equipment of the Group for the nine months ended September 30, 2021 and 2020 were as follows:

Cost: Balance at January 1, 2021 Additions Disposals Reclassification Effect of exchange rate changes Balance at September 30, 2021 Balance at January 1, 2020 Additions Disposals Reclassification Effect of exchange rate changes Balance at September 30, 2020 Accumulated depreciation/ impairments: Balance at January 1, 2021 Depreciation for the period Disposals Reclassification Effect of exchange rate changes Balance at September 30, 2021 Balance at January 1, 2020 Depreciation for the period Disposals Reclassification Effect of exchange rate changes Balance at September 30, 2020 Carrying amounts: Balance at September 30, 2021 Balance at December 31, 2020 Balance at September 30, 2020	Land and land improvements $ 12,086,178 591,329 - - (38,079) $ 12,639,428 $ 12,085,340 7,609 - 84,968 (55,197) $ 12,122,720 $ 143,336 86,894 - - (3,869) $ 226,361 $ 29,575 89,933 - - (3,113) $ 116,395 $ 12,413,067 $ 11,942,842 $ 12,006,325	Buildings and constructions 29,415,324 4,209 (6,772) 90,268 (116,069) 29,386,960 29,172,864 34,681 (2,357) 128,147 (72,481) 29,260,854 18,130,360 656,310 (6,772) 554 (38,541) 18,741,911 17,231,129 655,372 (2,357) 607 (17,692) 17,867,059 10,645,049 11,284,964 11,393,795	Machinery and equipment 195,709,750 836,040 (949,767) 2,580,251 (1,101,726) 197,074,548 190,805,323 232,505 (698,445) 5,216,153 (969,860) 194,585,676 145,399,483 4,307,848 (932,074) (884) (450,759) 148,323,614 140,443,440 4,254,042 (694,483) (666) (222,075) 143,780,258 48,750,934 50,310,267 50,805,418	Other facilities 7,678,491 305,734 (131,075) 154,942 (29,351) 7,978,741 6,921,887 371,139 (69,692) 374,233 (17,353) 7,580,214 5,211,212 378,605 (129,288) (1,074) (20,195) 5,439,260 4,879,940 329,150 (68,126) (534) (10,079) 5,130,351 2,539,481 2,467,279 2,449,863	Construction in progress 10,780,602 12,711,849 - (2,677,568) (64,675) 20,750,208 9,234,653 5,341,227 - (5,663,412) (43,712) 8,868,756 - - - - - - - - - - - - 20,750,208 10,780,602 8,868,756	Total 255,670,345 14,449,161 (1,087,614) 147,893 (1,349,900)
						267,829,885
						248,220,067 5,987,161 (770,494) 140,089 (1,158,603)
						252,418,220
						168,884,391 5,429,657 (1,068,134) (1,404) (513,364)
						172,731,146
						162,584,084 5,328,497 (764,966) (593) (252,959)
						166,894,063
						95,098,739
						86,785,954
						85,524,157

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Collaterals

The property, plant and equipment pledged to secure bank loans as of September 30, 2021, December 31 and September 30, 2020, are described in Note 8.

(ii) As of September 30, 2021, December 31 and September 30, 2020, the Group’s parcels of land with title temporarily registered under the names of third parties for trust purpose had carrying value as of $33,529 thousand which were recorded under property, plant and equipment. The Group has implemented a deed of trust with the authorities to secure the Group’s rights related to the abovementioned properties.
(iii) Please refer to Note 6(t) for further information about the capitalized interest on borrowings for the purchase of the property, plant and equipment and gain on disposal of property, plant and equipment.
(h) Right-of-use assets

The Group leases many assets including land and buildings, vehicle and machinery Information about cost and depreciation is as follows:

Cost: Balance at January 1, 2021 Additions Disposals Effect of exchange rate change Balance at September 30, 2021 Balance at January 1,2020 Additions Disposals Effect of exchange rate change Balance at September 30, 2020 Accumulated depreciation: Balance at January 1, 2021 Depreciation for the period Disposals Effect of exchange rate change Balance at September 30, 2021	Land $ 1,237,853 34,998 (80,275) (16,975) $ 1,175,601 $ 1,204,383 128,886 - (104,420) $ 1,228,849 $ 90,727 33,315 (80,275) (395) $ 43,372	Buildings and constructions - - - - - 304 244 (304) - 244 - - - - -	Total 1,237,853 34,998 (80,275) (16,975) 1,175,601 1,204,687 129,130 (304) (104,420) 1,229,093 90,727 33,315 (80,275) (395) 43,372

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Balance at January 1,2020 Depreciation for the period Disposals Effect of exchange rate change Balance at September 30, 2020 Carrying amount: Balance at September 30, 2021 Balance at December 31, 2020 Balance at September 30, 2020	Land $ 149,273 36,931 - (95,418) $ 90,786 $ 1,132,229 $ 1,147,126 $ 1,138,063	Buildings and constructions 243 183 (304) - 122 - - 122	Total 149,516 37,114 (304) (95,418) 90,908 1,132,229 1,147,126 1,138,185

For the nine months ended September 30, 2021 and 2020, the Group increased the right-of-use assets, please refer to Notes 6(m).

(i) Short-term borrowings

(i) Short-term borrowings consisted of the following:

Unsecured short-term borrowings Employees’savings Total Interest rate	September 30, 2021 $ 3,834,863 105,482 $ 3,940,345 0.747%~3.100%	December 31, 2020 14,975,936 380,788 15,356,724 0.405%~1.035%	September 30, 2020
			22,727,717 364,141
			23,091,858
			0.423%~1.035%

(ii) Issuance and redemption of loans

Balance as of January 1, 2021 New issuance during the period Repayments during the period Effect of exchange rate change Balance as of September 30, 2021	For the nine months ended September 30, 2021 $ 15,356,724 159,423,343 (170,832,066) (7,656) $ 3,940,345

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Balance as of January 1, 2020 New issuance during the period Repayments during the period Effect of exchange rate change Balance as of September 30, 2020 (j) Short-term notes and bills payable

For the nine months ended September 30, 2020 $ 20,255,096 256,577,635 (253,734,871) (6,002) $ 23,091,858

Short-term notes and bills payable Short-term notes and bills payable Short-term notes and bills payable Short-term notes and bills payable Short-term notes and bills payable

Short-term notes and bills payable Short-term notes and bills payable

Less: Discount on short-term notes and bills payable Total

Less: Discount on short-term notes and bills payable

Total

September	30, 2021
Institutions	Interest rate		Amount
CTBC Bank Co., Ltd.	0.175%	$	500,000
China Bills Finance Corporation	0.240%		400,000
Mega Bills Finance Co., Ltd.	0.234%		2,000,000
Grand Bills Finance Corporation	0.240~0.250%		2,600,000
Taipei Fubon Commercial Bank
Co., Ltd.	0.245%		1,000,000
Taishin International Bank Co., Ltd.	0.200~0.204%		3,000,000
Bank SinoPac	0.239%		300,000
			9,800,000

			(1,437)
		$	9,798,563
December	31, 2020
Institutions	Interest rate		Amount
CTBC Bank Co., Ltd.	0.269%	$	3,000,000
China Bills Finance Corporation	0.239%~0.269%		3,200,000
Mega Bills Finance Co., Ltd.	0.269%		1,000,000
Grand Bills Finance Corporation	0.239%~0.269%		3,800,000
E.SUN Commercial Bank, Ltd.	0.229%		2,500,000
Yuanta Commercial Bank Co., Ltd.	0.239%~0.269%		2,000,000
Taishin International Bank Co., Ltd.	0.229%~0.239%		1,500,000
			17,000,000
			(3,176)
		$	16,996,824

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Short-term notes and bills payable Short-term notes and bills payable Short-term notes and bills payable Short-term notes and bills payable Short-term notes and bills payable Short-term notes and bills payable Short-term notes and bills payable Short-term notes and bills payable Short-term notes and bills payable Less: Discount on short-term notes and bills payable Total	September 30, 2020 Institutions Interest rate Amount CTBC Bank Co., Ltd 0.385% $ 3,700,000 Ta Ching Securities Co., Ltd. 0.450% 600,000 China Bills Finance Corporation 0.395% 1,700,000 Mega Bills Finance Co., Ltd. 0.395%~0.398% 3,300,000 Grand Bills Finance Corporation 0.710% 1,900,000 Taipei Fubon Commercial Bank Co., Ltd. 0.398%~0.400% 2,800,000 E.SUN Commercial Bank, Ltd. 0.398% 2,500,000 Yuanta Commercial Bank Co., Ltd. 0.395~0.398% 1,500,000 Taishin International Bank Co., Ltd. 0.325% 1,000,000 19,000,000 (5,629) $ 18,994,371
	Institutions
	CTBC Bank Co., Ltd Ta Ching Securities Co., Ltd. China Bills Finance Corporation Mega Bills Finance Co., Ltd. Grand Bills Finance Corporation Taipei Fubon Commercial Bank Co., Ltd. E.SUN Commercial Bank, Ltd. Yuanta Commercial Bank Co., Ltd. Taishin International Bank Co., Ltd.

Short-term notes and bills payable
Short-term notes and bills payable
Short-term notes and bills payable
Short-term notes and bills payable
Short-term notes and bills payable
Short-term notes and bills payable
Short-term notes and bills payable
Short-term notes and bills payable
Short-term notes and bills payable
Less: Discount on short-term notes and
bills payable
Total

September 30, 2020
Institutions
Interest rate
Amount
CTBC Bank Co., Ltd
0.385%
$ 3,700,000
Ta Ching Securities Co., Ltd.
0.450%
600,000
China Bills Finance Corporation
0.395%
1,700,000
Mega Bills Finance Co., Ltd.
0.395%~0.398%
3,300,000
Grand Bills Finance Corporation
0.710%
1,900,000
Taipei Fubon Commercial Bank
Co., Ltd.
0.398%~0.400%
2,800,000
E.SUN Commercial Bank, Ltd.
0.398%
2,500,000
Yuanta Commercial Bank Co.,
Ltd.
0.395~0.398%
1,500,000
Taishin International Bank Co.,
Ltd.
0.325%
1,000,000
19,000,000
(5,629)
$
18,994,371

Institutions

CTBC Bank Co., Ltd
Ta Ching Securities Co., Ltd.
China Bills Finance Corporation
Mega Bills Finance Co., Ltd.
Grand Bills Finance Corporation
Taipei Fubon Commercial Bank
Co., Ltd.
E.SUN Commercial Bank, Ltd.
Yuanta Commercial Bank Co.,
Ltd.
Taishin International Bank Co.,
Ltd.

(k) Long-term debts

(i) Long-term debts consisted of the following:

Unsecured long-term debts Less: Current portion Total Repayment period Interest rate	September 30, 2021 $ 3,368,151 - $ 3,368,151 2025 0.889%~4.075%	December 31, 2020 3,569,776 (2,000,000) 1,569,776 2021~2025 0.800%~4.075%	September 30, 2020
			3,357,280 (2,160,383)
			1,196,897
			2020~2025
			0.800%~4.075%

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Issuance and redemption of loan

Balance of January 1, 2021 New issuance during the period Repayments during the period Effect of exchange rate charge Balance of September 30, 2021 Balance of January 1, 2020 New issuance during the period Repayment during the period Effect of exchange rate charge Balance of September 30, 2020	Total $ 3,569,776 1,834,214 (2,000,000) (35,839) $ 3,368,151 Total $ 6,610,540 1,189,939 (4,435,919) (7,280) $ 3,357,280

(iii) Secured bank loans

In order to raise funds to build the plant and accessory equipment, the Group signed a syndicated loan agreement with Bank of Taiwan, the lead bank of the syndicated loan, and 19 other banks on November 14, 2013. As of September 30, 2021, the details of the loan agreement are as follows:

1) Credit line: $10,300,000 thousand.
2) Interest rate: as settled with each participating bank.
3) Period: 7 years (including a 3-year extension).
4) Collateral: the land at Sixth Naphtha Cracker pledged for 120 percent of the credit line financed by the loan.
5) The financial covenants under the loan agreement include the requirement to maintain certain financial ratios based on the audited consolidated financial reports. If the Group breaches these financial covenants, the syndicated banks may determine to declare the unpaid principal, interest, fees and other sums payable by the Group under the loan agreement to be immediately due and payable. These financial ratios are as follows:
a) Current Ratio (total current assets divided by total current liabilities): not lower than 100%.
b) Leverage Ratio (total liabilities plus contingent liabilities to tangible net worth): not higher than 150%.

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

6) The Group did not breach the above-mentioned financial covenants in respect of its financial statements as of December 31, 2020 .
7) As of May 29, 2020, $10,300,000 thousand of the credit line had been used, and the loan had been repaid all.
(iv) The assets pledged to secure loans are described in Note 8.

(l) Bonds payable

(i) Bonds payable consisted of the following:

Domestic unsecured nonconvertible corporate bonds Less: current portion Total Expiry	September 30, 2021 $ 46,756,242 (6,246,570) $ 40,509,672 2021~2030	December 31, 2020 40,910,455 (2,898,401) 38,012,054 2021~2030	September 30, 2020 40,907,933 (1,648,446) 39,259,487 2021~2030

(ii) Issuance and repayment of bonds payable:
1) Issuance

Amount Interest rate Expiry	For the nine months ended September 30	For the nine months ended September 30
	2021 $ 7,500,000 0.460%、0.520% 2026、2028	2020
		8,350,000
		0.580%、0.630%、0.670%
		2026、2028、2030

2) Repayment

Amount	For the nine months ended September 30,	For the nine months ended September 30,
	2021 $ 1,650,000	2020
		-

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) The terms of domestic corporate bonds as of September 30, 2021, December 31 and September 30, 2020 were as follows:

Issue amount 2021.09.30 Ending balance 2021.09.30 Current portion 2020.12.31 Ending balance 2020.12.31 Current portion 2020.09.30 Ending balance 2020.09.30 Current portion Issuance date Coupon rate Interest payment date Repayment method Issue amount 2021.09.30 Ending balance 2021.09.30 Current portion 2020.12.31 Ending balance 2020.12.31 Current portion 2020.09.30 Ending balance 2020.09.30 Current portion Issuance date Coupon rate Interest payment date Repayment method	The third domestic unsecured nonconvertible corporate bond in 2012	The first domestic unsecured nonconvertible corporate bond in 2013	The second domestic unsecured nonconvertible corporate bond in 2013	The first domestic unsecured nonconvertible corporate bond in 2014
	$ 9,000,000 2,499,241 1,249,349 2,498,752 1,249,349 2,498,590 - November 5, 2012 1.25%、1.39%、1.53% November 5 Payable in 2 equal installments for each different coupon rate in 2016~2017, 2018~2019 and 2021~2022 respectively. The first domestic unsecured nonconvertible corporate bond in 2017	11,500,000 1,497,349 748,485 1,496,213 - 1,495,834 - June 10, 2013 1.23%、1.52% June 10 Payable in 2 equal installments for each different coupon rate in 2016~2017 and 2022~2023, respectively. The first domestic unsecured nonconvertible corporate bond in 2018	8,500,000 6,297,453 - 6,296,571 - 6,296,277 - November 8, 2013 1.42%、1.94% November 8 Payable in 2 equal installments for each different coupon rate in 2017~2018 and 2022~2023, respectively. The first domestic unsecured nonconvertible corporate bond in 2020	6,000,000 5,995,987 - 5,995,166 - 5,994,893 - May 21, 2014 1.83%、1.92% May 21 Payable in 2 equal installments for each different coupon rate in 2023~2024 and 2025~2026, respectively. The first domestic unsecured nonconvertible corporate bond in 2021
	$ 7,000,000 5,346,893 1,649,395 6,995,471 1,649,052 6,994,997 1,648,446 May 19, 2017 1.09%、1.32% May 19 Payable in 2 equal installments for each different coupon rate in 2021~2022 and 2023~2024, respectively.	9,300,000 9,291,929 2,599,341 9,290,447 - 9,289,952 - June 26, 2018 0.82%、0.93%、1.09% June 26 Payable in 2 equal installments for each different coupon rate in 2022~2023, 2024~2025 and 2027~2028 respectively.	8,350,000 8,339,170 - 8,337,835 - 8,337,390 - June 22, 2020 0.58%、0.63%、0.67% June 22 Payable in 2 equal installments for each different coupon rate in 2024~2025, 2026~2027 and 2029~2030 respectively.	7,500,000 7,488,220 - - - - - September 15, 2021 0.46%、0.52% September 15 Payable in 2 equal installments for each different coupon rate in 2025~2026 and 2027~2028, respectively.

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(m) Lease liabilities

Lease liabilities consisted of the following:

Current Non-current financial assets	September 30, 2021 $ 23,787 $ 129,732	December 31, 2020 21,452 121,923	September 30, 2020
			29,654
			123,220

Please refer to Note 6 (u) the maturity analysis.

On September 30, 2021, the amounts of lease liabilities incurred from the rentals of land increased by $34,998 thousand, with the interest rates of 2.05% and 1.41%, maturing in October 2042 and December 2022. On September 30, 2020, the amounts of lease liabilities incurred from the rentals of land and building increased by $128,886 thousand and $244 thousand, with the interest rates of 2.05% and 1.41%, maturing in December 2042 and March 2021, respectively.

The amount recognized in profit or loss was as follows:

For the three months ended September 30, 2021 2020 $ 763 774 $ 27,594 35,582	For the nine months ended September 30,	For the nine months ended September 30,
2021 $ 763 $ 27,594	2021 2,177 64,515	2020
		2,654
		82,913

The amount recognized in cash flows statement was as follows:

Total cash outflow for leases	For the nine months ended September 30,	For the nine months ended September 30,
	2021 $ 91,546	2020
		114,020

(i) Real estate leases

As of September 30, 2021, the Group leases land and buildings for its office space and employee dormitory. The leases of office space typically run for a period of 2 to 50 years, and 1 year for employee dormitory. Some leases include an option to renew the lease for an additional period of the same duration after the end of the contract term.

Certain leases provide for additional rent payments that are based on changes in the local price indices, or sales that the Group incurred at the leased store in the period；others require the Group to make payments that relate to the property taxes levied on the lessor and insurance payments made by the lessor; these amounts are generally determined annually.

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Other leases

The Group also leases its buildings with contract terms of one year. These leases are short-term and the Group has elected not to recognize its right-of-use assets and lease liabilities for these leases.

(n) Employee benefits

(i) Defined benefit plan

Subsequent to December 31, 2020, there is apparently no evidence of any material market volatility, material curtailment, reimbursement and settlement or other material one-time events. Therefore, pension cost in the consolidated financial statements is measured and disclosed according to the respective actuarial report for the years ended December 31, 2020 and 2019.

The Group’s pension costs recognized in loss were as follows:

For the three months ended September 30,	For the three months ended September 30,	For the nine months ended September 30,	For the nine months ended September 30,
2021 $ 26,688 1,033 9,933 $ 37,654	2020	2021 79,678 3,148 30,137 112,963	2020
	23,271 1,437 15,857		70,449 4,308 46,935
	40,565		121,692

(ii) Defined contribution plan

The Labor Pension Act (“The Act”) prescribes a defined contribution plan. Pursuant to the Act, the Company has made monthly contributions equal to 6% of each employee’s monthly salary to employees’ pension accounts.

Subsidiaries in China are governed by China laws and regulation. Based on China laws and regulation, those companies contribute for employees’ pension benefits at rates ranging from 14% of salary every month and remit those contributions to the related authority.

The Group’s pension costs recognized in profit or loss were as follows:

For the three months ended September 30,	For the three months ended September 30,	For the nine months ended September 30,	For the nine months ended September 30,
2021 $ 58,494 2,586 27,542 $ 88,622	2020	2021 175,587 7,826 82,541 265,954	2020
	42,124 2,527 23,847		130,451 7,536 71,964
	68,498		209,951

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(o) Income tax

(i) The components of income tax for the three months ended September 30, 2021 and 2020 and the nine months ended September 30, 2021 and 2020 were as follows:

For the three months ended September 30,	For the nine months ended September 30,	For the nine months ended September 30,
2020		2020 1,703,204 174,279
604,747 225,869
830,616		1,877,483
2020	2021 (179,687)	2020 (56,500)
160,363

(ii) The income tax expense related to components of other comprehensive income for the three months ended September 30, 2021 and 2020 and the nine months ended September 30, 2021 and 2020 was as follows:

(iii) The Company’s income tax returns have been examined and approved through 2019 by the R.O.C tax authorities.

(p) Capital and other equity

Except as described below, there was no material change in equity for the nine months ended September 30, 2021 and 2020. Please refer to Note 6(p) of the consolidated financial statements as of and for the year ended December 31, 2020 for the related detail disclosures on equity.

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Capital surplus

The components of capital surplus were as follows:

Paid-in capital in excess of par value Treasury stock transactions Equity in capital surplus of investee companies Overdue unpaid directors’ remuneration and dividends Paid in capital in excess of the par value derived from overseas corporate bond conversion	September 30, 2021 $ 8,130,081 16,263 202,208 426,376 2,997,503 $ 11,772,431	December 31, 2020 8,130,081 16,263 202,111 396,166 2,997,503 11,742,124	September 30, 2020
			8,130,081 16,263 202,119 397,334 2,997,503
			11,743,300

(ii) Retained earnings

According to the rules of the Company’s articles and Company Act, the Company’s annual net profit, after providing for income tax and covering the losses of previous years, is first set aside for legal reserve at the rate of 10% thereof. In addition, a special reserve in accordance with applicable laws and regulations shall also be set aside. The remainder plus the undistributed earnings of the previous years are distributed or left undistributed for business purposes according to the resolution of the stockholders’ dividend distribution plan, which are initially proposed by the Board of Directors and adopted by the shareholders in the Annual Stockholders’ Meeting.

The Company also adopts a dividend distribution policy, under which, net earnings after deducting the legal reserve and special reserve may first be distributed by way of cash dividends which shall be equal to at least fifty percent (50%) of the Company’s total dividend distribution every year. The capitalization of earnings and capital surplus shall not exceed fifty percent of the total dividends.

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

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Special reserve

As the Company opted to avail of the exemptions allowed under IFRS 1 “ First-time Adoption of International Financial Reporting Standards” during the Company’s firsttime adoption of the IFRS as endorsed by the FSC, unrealized revaluation increments and cumulative translation adjustments (gains) of $2,790,507 thousand, which were previously recognized in shareholders’ equity were reclassified to retained earnings. In accordance with Regulatory Permit No. 1010012865 as issued by the FSC on April 6, 2012, a special reserve is appropriated from retained earnings for aforementioned reclassification. In addition, during the use, disposal or reclassifications of relevant assets, this special reserve is reverted to distributable earnings proportionately. The carrying amount of special reserve amounted to $2,790,507 thousand as of September 30, 2021, December 31 and September 30, 2020.

Pursuant to the Regulatory Permit mentioned above, the Company is also required to set aside an additional special reserve, as part of the distribution of its annual earnings, equal to the difference between the amount of above-mentioned special reserve and net debit balance of the other components of stockholders’ equity.

3) Earnings distribution

The appropriation of earning in 2020 and 2019 were approved in the shareholders’ meeting on July 29, 2021, and June 10, 2020, respectively. The amounts of appropriation of dividends per share were as follows:

Dividends attributable to ordinary shareholders: Cash dividends Dividends per share	For the years ended December 31,	For the years ended December 31,
	2020 $ 15,277,778 $ 2.40	2019
		28,009,259
		4.40

(iii) Other equity

Balance at January 1, 2021 Exchange differences arising on translation of foreign operations Share of exchange differences on associates and joint ventures accounted for using equity method Share of unrealized gains or losses on associates accounted for using equity method and their financial assets at fair value through other comprehensive income Unrealized gains on financial assets at fair value through other comprehensive income Share of cash flow hedge of associates and joint ventures Balance at September 30, 2021	Exchange differences on translation of foreign operations $ (9,603,060) (2,563,104) (150,204) - - - $ (12,316,368)	Unrealized gain (loss) on financial assets at fair value through profit or loss 76,471,804 - - 1,616,436 13,615,585 - 91,703,825	Gain (loss) on hedging instruments 37,988 - - - - (23,153) 14,835	Total 66,906,732 (2,563,104 (150,204 1,616,436 13,615,585 (23,153
				79,402,292

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Balance at January 1, 2020 Exchange differences arising on translation of foreign operations Share of exchange differences on associates and joint ventures accounted for using equity method Share of unrealized gains or losses on associates accounted for using equity method and their financial assets at fair value through other comprehensive income Unrealized gains on financial assets at fair value through other comprehensive income Share of cash flow hedge of associates and joint ventures Balance at September 30, 2020	Exchange differences on translation of foreign operations	Unrealized gain (loss) on financial assets at fair value through profit or loss ) 80,701,025 ) - ) - (6,505,306) (27,849,063) - ) 46,346,656	Gain (loss) on hedging instruments 779 - - - - 47,375 48,154	Total 75,423,554 (3,194,896) (298,639) (6,505,306) (27,849,063) 47,375
	$ (5,278,250 (3,194,896 (298,639 - - - $ (8,771,785
				37,623,025

(q) Earnings per share

The basic earnings per share was calculated as follows:

For the three months ended September 30,	For the three months ended September 30,	For the nine months ended September 30,	For the nine months ended September 30,
2021 $ 19,315,118 6,365,741 $ 3.03	2020	2021 54,505,761 6,365,741 8.56	2020
	10,350,775		9,326,462
	6,365,741		6,365,741
	1.63		1.47

(r) Revenue from Contracts with Customers

(i) Revenue Segmentation

		For the three mon	ths ended September 30, 2021	ths ended September 30, 2021
Plastic division $ 6,391,133 6,621,739 8,813,458 $ 21,826,330 $ 15,408,291 3,598,090 - - - - - - - - - - - - 2,819,949 $ 21,826,330	Polyolefin division 3,150,911 5,176,944 5,844,853 14,172,708 - - 4,071,930 4,771,231 5,295,823 - - - - - - - - - 33,724 14,172,708	Polypropylene division 2,229,399 5,887,271 1,566,030 9,682,700 - - - - - 8,970,259 712,441 - - - - - - - - 9,682,700	Tairylan division 2,906,858 6,718,690 2,459,437 12,084,985 - - - - - - - 7,920,336 1,341,613 929,415 742,359 - - - 1,151,262 12,084,985	Chemistry division 6,272,146 577,917 1,513,580 8,363,643 - - - - - - - - - - - 4,007,883 1,018,702 1,415,204 1,921,854 8,363,643	Others divisions 606,246 125,888 73,898 806,032 - - - - - - - - - - - - - - 806,032 806,032	Total 21,556,693 25,108,449 20,271,256
						66,936,398
						15,408,291 3,598,090 4,071,930 4,771,231 5,295,823 8,970,259 712,441 7,920,336 1,341,613 929,415 742,359 4,007,883 1,018,702 1,415,204 6,732,821
						66,936,398

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

		For the three mo	nths ended September 30, 2020	nths ended September 30, 2020
Plastic division $ 4,415,930 4,944,085 5,473,732 $ 14,833,747 $ 10,972,979 2,496,869 - - - - - - - - - - - - 1,363,899 $ 14,833,747	Polyolefin division 2,479,847 4,672,902 3,029,427 10,182,176 - - 3,807,722 3,328,108 3,011,468 - - - - - - - - - 34,878 10,182,176	Polypropylene division 1,845,487 6,086,148 1,113,642 9,045,277 - - - - - 8,549,973 495,304 - - - - - - - - 9,045,277 For the nine mo	Tairylan division Chemistry division 1,137,701 3,131,375 4,157,612 594,961 1,579,019 607,356 6,874,332 4,333,692 - - - - - - - - - - - - - - 3,108,254 - 1,587,699 - 842,437 - 733,334 - - 1,923,102 - 784,261 - 766,677 602,608 859,652 6,874,332 4,333,692 nths ended September 30, 2021		Others divisions 788,860 96,252 20,526 905,638 - - - - - - - - - - - - - - 905,638 905,638	Total 13,799,200 20,551,960 11,823,702
						46,174,862
						10,972,979 2,496,869 3,807,722 3,328,108 3,011,468 8,549,973 495,304 3,108,254 1,587,699 842,437 733,334 1,923,102 784,261 766,677 3,766,675
						46,174,862

	Polyolefin division 8,916,682 15,480,946 18,252,104 42,649,732 - - 12,367,088 13,784,914 16,390,847 - - - - - - - - - 106,883 42,649,732	Polypropylene division 6,543,546 18,319,616 5,068,481 29,931,643 - - - - - 27,983,218 1,948,425 - - - - - - - - 29,931,643	Tairylan division 7,938,663 17,663,083 7,435,038 33,036,784 - - - - - - - 20,682,955 4,629,129 2,639,036 2,310,293 - - - 2,775,371 33,036,784	Chemistry division 18,792,970 1,899,154 4,057,231 24,749,355 - - - - - - - - - - - 12,442,776 3,064,106 4,026,735 5,215,738 24,749,355	Others divisions 1,951,056 311,033 368,247 2,630,336 - - - - - - - - - - - - - - 2,630,336 2,630,336	Total 62,144,179 72,726,174 64,320,891
						199,191,244
						48,484,520 9,247,719 12,367,088 13,784,914 16,390,847 27,983,218 1,948,425 20,682,955 4,629,129 2,639,036 2,310,293 12,442,776 3,064,106 4,026,735 19,189,483
						199,191,244

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

		For the nine mo	nths ended September 30, 2020	nths ended September 30, 2020
Plastic division $ 13,363,061 13,240,812 16,950,979 $ 43,554,852 $ 30,484,756 8,776,248 - - - - - - - - - - - - 4,293,848 $ 43,554,852	Polyolefin division 6,811,210 11,087,723 9,717,204 27,616,137 - - 10,447,196 8,812,173 8,213,801 - - - - - - - - - 142,967 27,616,137	Polypropylene division 5,426,824 16,070,139 2,875,120 24,372,083 - - - - - 22,982,631 1,389,452 - - - - - - - - 24,372,083	Tairylan division 3,519,331 11,363,619 4,789,907 19,672,857 - - - - - - - 8,650,819 4,735,387 2,415,687 1,961,163 - - - 1,909,801 19,672,857	Chemistry division 9,153,188 2,102,869 1,901,183 13,157,240 - - - - - - - - - - - 5,405,111 2,045,458 2,934,390 2,772,281 13,157,240	Others divisions 2,361,023 260,345 183,607 2,804,975 - - - - - - - - - - - - - - 2,804,975 2,804,975	Total 40,634,637 54,125,507 36,418,000
						131,178,144
						30,484,756 8,776,248 10,447,196 8,812,173 8,213,801 22,982,631 1,389,452 8,650,819 4,735,387 2,415,687 1,961,163 5,405,111 2,045,458 2,934,390 11,923,872
						131,178,144

(ii) Balance of contracts

Notes receivable Accounts receivable (including related parties) Less: allowance for doubtful receivables Total	September 30, 2021 $ 4,916,226 16,910,940 (94,490) $ 21,732,676	December 31, 2020 2,148,261 13,813,715 (1,624) 15,960,352	September 30, 2020 2,163,884 10,828,664 (1,127) 12,991,421

Please refer to Note 6(c) for the disclosure of accounts receivable and impairment.

(s) Employee bonus

According to the Company’s articles, 0.05%~0.5% of the Company’s profit, excluding employee compensations, and after being appropriated to offset accumulated deficits, if any, should be distributed as employee compensations.

For the three months ended September 30, 2021 and 2020 and the nine months ended September 30, 2021 and 2020, the appropriated employee compensations amounted to $28,581 thousand, $51,830 thousand, $63,308 thousand and $52,090 thousand, respectively. These amounts were calculated based on the Company’ s articles of incorporation and the net profit before tax after deducting employee compensations, and were recognized under operating costs and operating expenses. If there would be any changes after the reporting date, the changes shall be accounted for as changes in accounting estimates and shall be recognized as profit or loss in the following year.

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the years ended December 31, 2020 and 2019, the appropriated employee compensations amounted to $30,211 thousand and $55,553 thousand, respectively, which were consistent with the actual distributions. Related information can be accessed from the Market Observation Post System website.

(t) Non-operating income and expenses
(i) Interest income

Interest income from bank deposits Other interest income Total Interest income	For the three months ended September 30 2021 2020 $ 23,290 59,282 32,699 20,722 $ 55,989 80,004	For the nine months ended September 30	For the nine months ended September 30
		2021 90,186 84,833 175,019	2020 210,595 98,896 309,491

(ii) Other income

For the three months ended September 30, 2021 2020 $ 37,741 39,179 2,998,842 3,351,361 $ 3,036,583 3,390,540	For the nine months ended September 30,	For the nine months ended September 30,
2021 $ 37,741 2,998,842 $ 3,036,583	2021 115,296 2,998,842 3,114,138	2020
		114,080 3,357,806
		3,471,886

(iii) Other gains and losses

For the three months ended September 30, 2021 2020 $ 2,577 2,560 103,153 (493,573) 2,861 (59,497) 123,364 53,078 (204,644) (33,224) $ 27,311 (530,656)	For the nine months ended September 30,	For the nine months ended September 30,
2021 $ 2,577 103,153 2,861 123,364 (204,644) $ 27,311	2021 7,172 (444,273) (74,085) 494,180 (270,496) (287,502)	2020
		8,301 (619,699) (80,547) 397,297 (101,342)
		(395,990)

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iv) Finance costs

Interest expense Less: capitalized interest Interest expense from bank loans Capitalized interest rate	For the three months ended September 30, 2021 2020 $ 233,673 286,727 (46,328) (20,166) $ 187,345 266,561 0.889%-1.394% 0.800%-2.885%	For the three months ended September 30, 2021 2020 $ 233,673 286,727 (46,328) (20,166) $ 187,345 266,561 0.889%-1.394% 0.800%-2.885%		For the nine months ended September 30, 2021 2020 725,203 1,031,732 (115,326) (57,315) 609,877 974,417 0.889%-1.394% 0.800%-2.885%
		2020		2021 725,203 (115,326) 609,877 0.889%-1.394%

(u) Financial Instruments

Except as described below, there was no material change with regard to the fair value and exposure risks of credit risk, liquidity risk and market risk on financial instruments. Please refer to Note 6(u) of the consolidated financial statements as of and for the year ended December 31, 2020 for the related detail disclosures on financial instruments.

(i) Exposure to currency risk

Financial assets Monetary items USD EUR JPY RMB Financial liabilities Monetary items USD EUR JPY	September 30, 2021	September 30, 2021
	Foreign currency (in thousand)	Exchange Rate New Taiwan Dollars 27.8660 13,563,023 32.2068 207,122 0.2499 736 4.2967 6,578 27.8660 2,555,312 32.2068 17,907 0.2499 8,580
	$ 486,723 6,431 2,946 1,531 91,700 556 34,335

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets Monetary items USD EUR JPY RMB Financial liabilities Monetary items USD EUR JPY Financial assets Monetary items USD EUR JPY RMB Financial liabilities Monetary items USD EUR JPY			December 31, 2020
	Foreign currency (in thousand) $ 453,072 4,874 15,735 1,624 29,627 150 37,720		Exchange Rate New Taiwan Dollars 29.1260 13,196,175 33.8786 165,124 0.2745 4,319 4.2769 6,946 29.1260 862,916 33.8786 5,082 0.2745 10,354

The Group’ s exposure to foreign currency risk arises from the foreign currency exchange fluctuations on cash and cash equivalents, accounts receivable, other receivables, loans and borrowings, accounts payable and other payables which are denominated in different foreign currencies. A 1% appreciation of the NTD against the USD, EUR, JPY, RMB and CHF as of 2021 would have decreased the net income before tax by $111,957 thousand and $124,942 thousand for the nine months ended September 30, 2021 and 2020, respectively. This analysis assumes that all other variables remain constant and ignores any impact of forecasted sales and purchases. The management believes that the analysis is performed on the same basis.

Because there are a variety of functional currencies, the Group discloses a summary of its information on exchange gain or loss. The realized and unrealized exchange loss amounted to $444,273 thousand and $619,699 thousand for the nine months ended September 30, 2021 and 2020, respectively.

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Liquidity risk

The following are the remaining contractual maturities at the end of the reporting period of financial liabilities, including estimated interest payments but excluding the impact of netting agreements:

Contractual cash flow	Within 6 months	6~12months	1~2years	Over 5 years
7,644,830 48,526,963 9,800,000 14,946,541 9,007,244 13,748,594 8,949,204 105,899 183,577	3,850,093 1,259,563 9,800,000 14,946,541 9,007,244 - 8,949,204 105,899 13,304	- 5,050,705 - - - - - - 13,304	- 10,393,050 - - - 13,748,594 - - 12,549	- 9,736,750 - - - - - - 120,830
112,912,852	47,931,848	5,064,009	24,154,193	9,857,580
18,903,103 42,878,823 17,000,000 13,126,143 5,187,590 14,894,084 6,665,774 382,863 173,549	17,045,469 1,658,993 17,000,000 13,126,143 5,187,590 - 6,665,774 382,863 20,285	- 1,269,125 - - - - - - 3,846	- 9,661,880 - - - 14,894,084 - - 7,692	- 9,325,390 - - - - - - 119,435
119,211,929	61,087,117	1,272,971	24,563,656	9,444,825
26,400,439 43,015,350 19,000,000 8,775,082 3,483,315 15,216,960 6,832,185 366,024 183,723	24,984,061 - 19,000,000 8,775,082 3,483,315 - 6,832,185 366,024 20,347	- 1,667,985 - - - - - - 12,035	- 6,389,660 - - - 15,216,960 - - 7,692	- 9,292,455 - - - - - - 121,293
123,273,078	63,461,014	1,680,020	21,614,312	9,413,748

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

It is not expected that the cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts.

(iii) Other market price risk

If the securities price changes at the reporting date (sensitivity analyses were performed using the same basis for both twelve-month period ended September 30, 2021 and 2020, and other factors remain unchanged), impacts on comprehensive income are as below:

Prices of securities at the reporting date	For the nine months ended September 30,	For the nine months ended September 30,	For the nine months ended September 30,	For the nine months ended September 30,
	2021		2020
	Other comprehensive income after tax	Net income	Other comprehensive income after tax 793,166 (793,166)	Net income
Increasing 1% Decreasing 1%	$ 1,104,161 $ (1,104,161)	-		-
		-		-

(iv) Fair value
1) Types and fair value of financial instruments

The Group’ s financial assets and liabilities are listed as follows: (including (1) the information on the levels in fair value hierarchy, wherein, disclosures are not required for financial instruments not measured at fair value with a carrying value approximating its fair value; and (2) those equity investments in which the fair value cannot be reliably measured and without any quoted price in the open market)

	September 30, 2021	September 30, 2021	September 30, 2021
Carrying value		Fair value
	Level 1	Level 2	Level 3 - - - 24,155,179 24,155,179 - - - - 24,155,179	Total
$ 3,814,798 3,814,798 110,416,105 24,155,179 134,571,284 11,164,837 21,732,676 8,840,895 41,738,408 $ 180,124,490	-	3,814,798		3,814,798
	-	3,814,798		3,814,798
	110,416,105 -	- -		110,416,105 24,155,179
	110,416,105	-		134,571,284
	- - -	- - -		- - -
	-	-		-
	110,416,105	3,814,798		138,386,082

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	September 30, 2021	September 30, 2021	September 30, 2021
Carrying value		Fair value
	Level 1	Level 2	Level 3 - - - - - - - - - -	Total
$ 46,756,242 9,798,563 3,940,345 3,368,151 13,375,680 14,946,541 9,005,318 8,949,204 153,519 $ 110,293,563	- - - - - - - - -	- - - - - - - - -		- - - - - - - - -
	-	-		-

	December 31, 2020	December 31, 2020	December 31, 2020
Carrying value		Fair value
	Level 1	Level 2	Level 3 - - - 18,647,715 18,647,715 - - - - 18,647,715	Total
$ 3,888,883 3,888,883 102,218,948 18,647,715 120,866,663 14,145,110 15,960,352 7,435,350 37,540,812 $ 162,296,358	-	3,888,883		3,888,883
	-	3,888,883		3,888,883
	102,218,948 -	- -		102,218,948 18,647,715
	102,218,948	-		120,866,663
	- - -	- - -		- - -
	-	-		-
	102,218,948	3,888,883		124,755,546

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	December 31, 2020	December 31, 2020	December 31, 2020
Carrying value		Fair value
	Level 1	Level 2		Total
$ 40,910,455 16,996,824 15,356,724 3,569,776 14,396,540 13,115,200 5,187,588 6,665,774 143,375 $ 116,342,256	- - - - - - - - -	- - - - - - - - -		- - - - - - - - -
	-	-		-

Carrying value		Fair value
	Level 1	Level 2	Level 3 - - - 15,988,665 15,988,665 - - - - 15,988,665	Total
$ 3,963,809 3,963,809 79,316,584 15,988,665 95,305,249 13,594,042 12,991,421 11,293,931 37,879,394 $ 137,148,452	-	3,963,809		3,963,809
	-	3,963,809		3,963,809
	79,316,584 -	- -		79,316,584 15,988,665
	79,316,584	-		95,305,249
	- - -	- - -		- - -
	-	-		-
	79,316,584	3,963,809		99,269,058

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	September 30, 2020	September 30, 2020	September 30, 2020
Carrying value		Fair value
	Level 1	Level 2	Level 3 - - - - - - - - - -	Total
$ 40,907,933 18,994,371 23,091,858 3,357,280 14,708,630 8,775,082 3,483,315 6,832,185 152,874 $ 120,303,528	- - - - - - - - -	- - - - - - - - -		- - - - - - - - -
	-	-		-

2) Valuation techniques for financial instruments not measured at fair value

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

Financial liabilities measured at amortized cost.

If there is quoted price generated by transactions, the recent transaction price and quoted price data is used as the basis for fair value measurement. However, if no quoted prices are available, the discounted cash flows are used to estimate fair values.

3) Valuation techniques for financial instruments measured at fair value

The fair value of the financial instruments traded in active markets is based on quoted market prices. The fair value of listed equity instruments is based on the market prices that were published at main stock exchanges.

If the financial instruments possessed by the Group have quoted market prices in active markets, the fair value was as follows:

The fair values of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are determined with reference to quoted market prices (includes publicly traded stocks).

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

4) There was no transfer between the fair value hierarchy levels for the nine months ended September 30, 2021 and 2020.
5) Movement of financial instruments grouped into level 3

January 1, 2021 Total gains and losses recognized: In other comprehensive income Additions Effect of exchange rate changes September 30, 2021 January 1, 2020 Total gains and losses recognized: In other comprehensive income Proceeds from capital reduction Effect of exchange rate changes September 30, 2020	Financial assets at fair value through other comprehensive income Unquoted equity instruments $ 18,647,715 5,418,428 91,000 (1,964) $ 24,155,179 $ 21,408,559 (4,823,567) (12,500) (583,827) $ 15,988,665

6) The valuation procedures for fair value measurements being categorized within Level 3 is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price. According to the group’s accounting policy, at the reporting date, the analysis of value changes of remeasured or reevaluated assets and liabilities is performed to ensure the reasonability of the evaluation results.
7) The quantitative information of significant unobservable inputs (Level 3)

Most of the group’ s financial instruments that use Level 3 inputs have only one significant unobservable input. Only equity investment with no-active markets have multiple significant unobservable inputs.

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Quantified information of significant unobservable inputs was as follows:

Item Financial assets at fair value through other comprehensive income – unquoted equity instruments	Valuation technique Market comparable companies Net Asset Value Method	Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement Price to earnings ratio multiple, price to book ratio multiple, enterprise value to operating income ratio multiple, enterprise value to EBITA multiple, discount for lack of marketability The higher the multiple, the higher the fair value Not applicable Not applicable

8) Valuation model used in Level 3 fair value measurement - sensitivity analysis of the fair value to the reasonable replaceable assumption

The valuation models and assumptions used to measure the fair value of the financial instruments is reasonable. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of other comprehensive income from financial assets and liabilities categorized within Level 3 if the inputs used to valuation models have changed:

September 30, 2021 Financial assets at fair value through other comprehensive income – unquoted equity instruments	Input Price to earnings ratio multiple price to book ratio multiple, enterprise value to operating income ratio multiple, enterprise value to EBITA multiple, discount for lack of marketability	Recognized in other comprehensive income Change Favorable change Unfavorable change ± 1% $ 199,537 (199,537)

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

December 31, 2020 Financial assets at fair value through other comprehensive income – unquoted equity instruments September 30, 2020 Financial assets at fair value through other comprehensive income – unquoted equity instruments	Input Price to earnings ratio multiple price to book ratio multiple, enterprise value to operating income ratio multiple, enterprise value to EBITA multiple, discount for lack of marketability Price to earnings ratio multiple price to book ratio multiple, enterprise value to operating income ratio multiple, enterprise value to EBITA multiple, discount for lack of marketability	Recognized in other comprehensive income Change Favorable change Unfavorable change ± 1% $ 147,165 (147,165) ± 1% $ 126,770 (126,770)	Recognized in other comprehensive income	Recognized in other comprehensive income
				Unfavorable change
				(147,165)
				(126,770)

(v) Financial risk management

There were no material changes in financial risk management in comparison to Note 6(v) of the consolidated financial statements as of and for the year ended December 31, 2020.

(w) Capital management

There were no material changes in capital management target adopted for capital management in comparison to Note 6(w) of the consolidated financial statements as of and for the year ended December 31, 2020.

(x) Changes in liabilities come from financing activities

Changes of liabilities arising from financing activities were as follows:

Short-term borrowings Short-term notes and bills payable Long term loan (including current portion) Bonds payable (including current portion) Lease liabilities Loans from related parties Total liabilities arisings from financing activities	January 1, 2021 $ 15,356,724 16,996,824 3,569,776 40,910,455 143,375 14,396,540 $ 91,373,694	Change in cash flows (11,408,723) (7,200,000) (165,786) 5,850,000 (24,854) (417,919) (13,367,282)	Changes in non-cash - 1,739 - (4,213) 34,998 - 32,524	Effect of exchange rate changes (7,656) - (35,839) - - (602,941) (646,436)	September 30, 2021 3,940,345 9,798,563 3,368,151 46,756,242 153,519 13,375,680 77,392,500

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Short-term borrowings Short-term notes and bills payable Long term loan (including current portion) Bonds payable (including current portion) Lease liabilities Loans from related parties Total liabilities arisings from financing activities	January 1, 2020 $ 20,255,096 14,991,544 6,610,540 32,564,312 52,197 21,375,260 $ 95,848,949	Change in cash flows 2,842,764 4,000,000 (3,245,980) 8,350,000 (31,107) (6,131,284) 5,784,393	Changes in non-cash - 2,827 - (6,379) 131,784 - 128,232	Effect of exchange rate changes (6,002) - (7,280) - - (535,346) (548,628)	September 30, 2020
					23,091,858 18,994,371 3,357,280 40,907,933 152,874 14,708,630
					101,212,946

(7) Related-party transactions:

(a) Name of related parties

Name of related party Relationship with Consolidated Company Formosa Petrochemical Corporation Associates Formosa Plastics Corp., U.S.A. Associates Formosa Heavy Industries Corp. Associates Mai Liao Power Corp. Associates Formosa Sumco Technology Corporation Associates Formosa Transportation Corp. Associates Wha Ya Park Management Consulting Corporation Associates Ltd. Formosa Resources Corporation Associates Formosa Group (Cayman) Limited Associates Hua Ya Power Corp. Associates Formosa Heavy Industries (Ningbo) Corp. Associates Japan Formosa Sumco Technology Corp. Associates Fujian Fuxin Special Steel Co., Ltd. Associates Formosa Transportation (Ningbo) Corp. Associates Formosa Automobile Corporation Associates Formosa Plastics Construction Corporation Associates Formosa Asahi Spandex Co., Ltd. Joint venture Formosa Daikin Advanced Chemical Co., Ltd. Joint venture Formosa Mitsui Advanced Chemical Co., Ltd. Joint venture Formosa Tokuyama Advanced Chemicals Co., Ltd. Joint venture Nan Ya Plastics Corporation Other related parties Formosa Chemicals and Fiber Corporation Other related parties

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of related party

Chang Gung Medical Foundation Nan Ya PCB Corporation PFG Fiber Glass Corporation Nan Chung Petrochemical Corporation Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Plastics (Nantong) Co., Ltd. Nan Ya Plastics Film (Huizhou) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Draw Textured Yarn (Kunshan) Co., Ltd. Nan Ya Electronic Materials (Kunshan) Co., Ltd. Nan Ya Plastics (Ningbo) Co., Ltd. Nan Ya Plastics (Indonesia) Co., Ltd. Nan Ya Plastics Corporation America Formosa Industries Corp., Vietnam Formosa Taffeta Co., Ltd. Formosa INEOS Chemicals Corporation Formosa Biomedical Technology Corp. Formosa Carpet Co., Ltd. Formosa Idemitsu Petrochemical Corp. Hong Jing Resources Corp. Formosa Power (Ningbo) Co., Ltd. Formosa Chemicals Industries (Ningbo) Co., Ltd. Formosa Plastics Marine Corp. Formosa Group Ocean Marine Corp Formosa Ha Tinh Steel Corporation Nan Ya Technology Corporation Nan Ya Plastics Corporation USA Inteplast Taiwan Corporation Formosa Ha Tinh (Cayman) Ltd. Xiamen Chang Gung hospital Formosa Port (Ningbo) Co., Ltd. Chang Gung Biotechnology Corporation Formosa Technologies Corporation Formosa Petrochemical Transportation Corporation, Ltd.

INTEPLAST GROUP

Relationship with Consolidated Company

Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties Other related parties

Other related parties

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of related party Chang Gung University Kaohsiung Cultural Foundation of Brothers Wang Yung-ching and Wang Yung-tsal Park

Relationship with Consolidated Company Other related parties

Other related parties

(b) Significant related-party transactions

(i) Sales to related parties

The Group’s significant sales to related parties were as follows:

For the three months ended September 30,	For the three months ended September 30,	For the nine months ended September 30,	For the nine months ended September 30,
2021 $ 2,997,510 38,080 8,020,431 $ 11,056,021	2020	2021 7,107,995 111,065 23,254,921 30,473,981	2020
	1,579,116 26,811 5,143,519		4,763,344 89,637 15,070,804
	6,749,446		19,923,785

The receivables from related parties were as follows:

Associates Joint ventures Other related parties	September 30, 2021 $ 1,463,535 12,819 3,089,681 $ 4,566,035	December 31, 2020 856,346 7,481 2,575,386 3,439,213	September 30, 2020
			868,207 9,601 2,086,293
			2,964,101

The selling prices and collection terms for the sales to related parties are not significantly different from those third-party customers, and receivables are collected on the 27th of the month following the month of sales. The terms of receivables from other foreign related parties are O/A 60 days, O/A 90 days or L/C at sight.

(ii) Purchase from related parties

The Group’s significant purchases from related parties were as follows:

For the three months ended September 30,	For the three months ended September 30,	For the nine months ended September 30,	For the nine months ended September 30,
2021 $ 20,263,687 2,946,348 1,669,793 $ 24,879,828	2020	2021 60,178,941 7,187,546 4,828,349 72,194,836	2020
	11,971,420 2,311,652 867,030		38,468,757 6,002,264 2,420,810
	15,150,102		46,891,831

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The payables from related parties were as follows:

Associates Formosa Petrochemical Corporation Other Other related parties	September 30, 2021 $ 7,413,918 793,261 705,017 $ 8,912,196	December 31, 2020 6,272,990 399,809 429,766 7,102,565	September 30, 2020 3,385,039 659,322 301,453 4,345,814

The purchase price and payment terms for the purchase from related parties are not significantly different from those with third-party vendors, and payables are paid on the 27th of the month following the month of purchase.

(iii) Property plant and equipment
1) Sales of equipment (recognized as property, plant and equipment) from related parties were as follow：

were as follow：
Joint ventures Other related parties	For the three months ended September 30, 2021 Disposal price Gain from disposal $ 105 30 9,346 53 $ 9,451 83	For the nine months ended September 30, 2021
	Disposal price $ 105 9,346 $ 9,451	Disposal price 305 9,346 9,651	Gain from disposal
			230 53
			283

The group has no related transactions for the nine months ended September 30, 2020.

There were no outstanding balances as of September 30, 2021, December 31 and September 30, 2020.

2) Purchase property, plant and equipment

Purchase of equipment (recognized as property, plant and equipment) from related parties were as follow：

For the three months ended September 30,	For the three months ended September 30,	For the nine months ended September 30,	For the nine months ended September 30,
2021 $ - 63,592 $ 63,592	2020	2021 - 142,830 142,830	2020
	7,539 79,318		7,539 264,241
	86,857		271,780

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The outstanding balance of the Group at the end of the period is as follow (recognized as other payable-related parties):

other payable-related parties):
Other related parties	September 30, 2021 $ 19,662	December 31, 2020 50,757	September 30, 2020
			19,842

3) Acquisition of financial assets

Joint ventures- Formosa Mitsui Advanced Chemicals Co., Ltd. Associates- Formosa Resources Corporation Joint ventures- Formosa Tokuyama Advanced Chemicals Co., Ltd. Formosa Mitsui Advanced Chemicals Co., Ltd.	Financial Statement Account Number of Shares (in thousands) Investments accounted for using equity method - Financial Statement Account Number of Shares (in thousands) Investments accounted for using equity method 88,453 Investments accounted for using equity method 37,500 Investments accounted for using equity method -	Transaction Shares For the three months ended September 30, 2021 Shares of stock of Formosa Mitsui Advanced Chemical Co., Ltd. $ 128,450 Transaction Shares For the nine months ended September 30, 2021 Shares of stock of Formosa Resources Corporation $ 884,531 Shares of stock of Formosa Tokuyama Advanced Chemicals Co., Ltd. 375,000 Shares of stock of Formosa Mitsui Advanced Chemicals Co., Ltd. 128,450 $ 1,387,981

The Group has no related transactions for the nine months ended September 30, 2020.

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iv) Loans to related parties

The Group’s significant financing transactions with related parties were as follows:

1)

Due from related parties (recognized as other receivables-related parties)	Due from related parties (recognized as other receivables-related parties)	Due from related parties (recognized as other receivables-related parties)
September 30, 2021 $ - 2,148,364 613,573 2,950,489 $ 5,712,426	December 31, 2020 - - 249,039 4,243,086 4,492,125	September 30, 2020
		3,000,000 - 239,506 5,344,850
		8,584,356

As of September 30, 2021, December 31 and September 30, 2020, the interest revenue receivables from the abovementioned transactions amounted to $42,023 thousand, $7,363 thousand and $13,276 thousand, respectively, which was recognized as other receivablesrelated parties.

2)

Associates Formosa Plastics Corp., U.S.A.	Due to related parties (recognized as other payables–related parties) September 30, 2021 December 31, 2020 September 30, 2020 $ 13,375,680 14,396,540 14,708,630	Due to related parties (recognized as other payables–related parties) September 30, 2021 December 31, 2020 September 30, 2020 $ 13,375,680 14,396,540 14,708,630	Due to related parties (recognized as other payables–related parties) September 30, 2021 December 31, 2020 September 30, 2020 $ 13,375,680 14,396,540 14,708,630	Due to related parties (recognized as other payables–related parties) September 30, 2021 December 31, 2020 September 30, 2020 $ 13,375,680 14,396,540 14,708,630
	September 30, 2021 $ 13,375,680		December 31, 2020 14,396,540
				14,708,630

As of September 30, 2021, December 31 and September 30, 2020, the accrued interest expense from the abovementioned transactions amounted to $14,853 thousand, $17,959 thousand and $21,182 thousand respectively, which was recognized as other current liabilities.

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(v) Endorsements and guarantees

The Group’s endorsements guarantees to secure related parties’ loans were as follows:

Associates Formosa Group (Cayman) Limited Formosa Resources Corporation Other related Parties Formosa Ha Tinh (Cayman) Ltd.	September 30, 2021 $ 6,966,500 - 8,441,949 $ 15,408,449	December 31, 2020 7,127,000 3,064,610 18,967,581 29,159,191	September 30, 2020
			7,281,500 3,131,045 19,728,380
			30,140,925

(vi) Other transactions

1) The Group’ s income received from related parties, such as sewage treatment income, wharf usage income and utility and steam income was as follows:

Other receivables–related	Other receivables–related	parties
September 30, 2021 $ 272 13 1,171 $ 1,456	December 31, 2020 17 - 1,769 1,786	September 30, 2020
		14 7 339
		360

2) The Group’s expenses paid to related parties, such as sewage treatment expense, wharf usage expense, utility and steam expenses, transportation expense and restoration expense were as follows:

Associates Other related parties	Other payables–related parties	Other payables–related parties	Other payables–related parties
	September 30, 2021 $ 1,215,369 219,112 $ 1,434,481	December 31, 2020 1,434,109 221,057 1,655,166	September 30, 2020 1,113,882 221,929 1,335,811

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(vii) Receivables from payment on behalf of related parties

1) The Group paid for construction design service fees on behalf of related parties as follows:

Associates Fujian Fuxin Special steel Cor., Ltd	Other receivables–related parties	Other receivables–related parties	Other receivables–related parties
	September 30, 2021 $ 1,881,328	December 31, 2020 1,997,928	September 30, 2020 2,061,793

(viii) Rental (recognized as other income)

The Group lease its office and building to related parties, and derived rental income thereon as follows:

For the three months ended September 30,	For the three months ended September 30,	For the nine months ended September 30,	For the nine months ended September 30,
2021	2020	2021 12,426 44,073 5,467 13,048 6,037 17,826 30,150 129,027	2020
$ 4,142 14,691 1,982 4,350 2,012 5,695 3,818 $ 36,690	4,142 14,691 1,741 4,590 148 6,475 4,440		12,426 44,073 5,226 13,048 446 19,129 28,007
	36,227		122,355

The rentals charged to related parties are determined based on the local market prices, and rents are collected depending on the contract periods (e.g. monthly, semi-annually or annually).

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Compensation of key management

The compensation to key management was as follows:

Short-term employee benefits	For the three months ended September 30,	For the three months ended September 30,		For the nine months ended September 30, 2021 2020 51,969 57,572	For the nine months ended September 30, 2021 2020 51,969 57,572
	2021 $ 17,417	2020		2021 51,969
		19,949			57,572

(8) Pledged assets:

The Group’s assets pledged to secure loans were as follows:

Classification of assets Nature of Pledged Assets Property plant and equipment Land and building Refundable deposits (classified under other non-current assets) Certificate of deposit	September 30, 2021 $ 2,155,336 92,961 $ 2,248,297	December 31, 2020 2,156,562 92,675 2,249,237	September 30, 2020
			2,156,991 88,541
			2,245,532

(9) Commitments and contingencies:

(a) The amounts of endorsements and guarantees for related parties were as follows:

Endorsements and guarantees	September 30, 2021 $ 15,408,449	December 31, 2020 29,159,191	September 30, 2020 30,140,925

(b) The amounts of unused outstanding letters of credit for the importation of raw materials for related parties were as follows:

Unused outstanding letters	September 30, 2021 $ 1,056,947	December 31, 2020 456,046	September 30, 2020 396,898

(c) As of September 30, 2021, the Company’ s investee, Formosa Ha Tinh (Cayman) Ltd. and Formosa Ha Tinh Steel Corporation, signed several contracts of syndicated credit lines of US$1,685,000 thousand with different banks amounting to US$1,602,500 thousand for its operational needs. According to the requirement of the bank consortium, the Company, together with the other related parties, have to issue a letter of undertaking and to manage the necessary funds to fulfill the repayment of obligations when needed.

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(10) Losses Due to Major Disasters: None

(11) Subsequent Events: None

(12) Other:

(a) The nature of operating costs and expenses of the Group was as follows:

	For the three months en	For the three months en	ded September 30, 2021	ded September 30, 2021	For the three months ended September 30, 2020	For the three months ended September 30, 2020	For the three months ended September 30, 2020	For the three months ended September 30, 2020
	Operating costs	Operating expenses	Non- operating expenses	Total	Operating costs	Operating expenses	Non- operating expenses	Total
Employee benefits Salaries Labor and health insurance Pension Remuneration of directors Others Depreciation expenses Amortization expenses	1,592,295 125,192 85,182 - 77,656 1,416,100 196,774	1,045,204 72,563 41,094 2,465 29,140 412,390 324	- - - - - 508 2,523	2,637,499 197,755 126,276 2,465 106,796 1,828,998 199,621	1,410,973 112,880 65,395 - 56,430 1,403,860 151,174	959,554 66,045 43,668 1,960 26,612 425,252 859	- - - - - 506 3,221	2,370,527 178,925 109,063 1,960 83,042 1,829,618 155,254

	For the nine months end		ed September 30, 2021		For the nine months ended September 30, 2020
	Operating costs	Operating expenses	Non- operating expenses	Total	Operating costs	Operating expenses	Non- operating expenses	Total
Employee benefits Salaries Labor and health insurance Pension Remuneration of directors Others Depreciation expenses Amortization expenses	4,389,894 364,214 255,265 - 227,483 4,212,286 705,788	2,894,988 213,986 123,652 6,115 79,103 1,249,151 1,034	- - - - - 1,535 7,566	7,284,882 578,200 378,917 6,115 306,586 5,462,972 714,388	4,242,754 328,102 200,900 - 216,384 4,142,300 336,549	2,841,473 193,013 130,743 5,690 78,465 1,221,788 2,579	- - - - - 1,523 8,773	7,084,227 521,115 331,643 5,690 294,849 5,365,611 347,901

(b) Seasonality of operations

The Group's operations were not affected by seasonality or cyclicality factors.

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements

(13) Other disclosures:

(a) Information on significant transactions:

The significant transactions required by the “Guidelines” for the Group were as follows:

(i) Fund financing to other parties:

(In Thousands of New Taiwan Dollars)

No.	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral	Collateral	Individual funding loan limits	Maximum limit of fund financing	Note
													Item	Value
0 0 0 0 0 0 1 1	The Company The Company The Company The Company The Company The Company Formosa Industries (Ningbo) Co., Ltd. Formosa Industries (Ningbo) Co., Ltd.	Formosa Petrochemical Corp. Formosa Chemicals & Fiber Corp. Nan Ya plastic Corp. Formosa Heavy Industries Corp. Formosa Group Ocean Marine Corp. Japan Formosa Sumco Technology Corp. Formosa Mitsui Advanced Chemical Co., Ltd. Formosa Heavy Industries (Ningbo) Corp	Other receivables- related parties Other receivables- related parties Other receivables- related parties Other receivables- related parties Other receivables- related parties Other receivables- related parties Other receivables- related parties Other receivables- related parties	Yes Yes Yes Yes Yes Yes Yes Yes	7,500,000 7,500,000 7,500,000 9,100,000 5,593,689 600,000 613,612 (CNY 142,800) 2,148,500 (CNY 500,000)	4,500,000 4,500,000 4,500,000 5,700,000 4,937,089 - 613,612 (CNY142,800) 2,148,500 (CNY 500,000)	- - - - 2,950,489 - 613,573 (CNY142,800) 2,148,364 (CNY 500,000)	1.230% 1.230% 1.230% 1.230% 1.230% 1% 3.08% 3.08%	2 2 2 2 2 2 2 2	- - - - - - - -	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing	- - - - - - - -	- - - - - - - -	- - - - - - - -	76,858,577 76,858,577 76,858,577 76,858,577 76,858,577 76,858,577 19,131,661 23,914,576	153,717,153 153,717,153 153,717,153 153,717,153 153,717,153 153,717,153 47,829,152 47,829,152	Note 4 Note 4

Note 1: (1) Those with business contact please fill in 1

(2) Those necessary for short-term financing please fill in 2.

Note 2: (1) The maximum financing allowed should not exceed 50% of the Company’s net equity, and the maximum short-term financing to companies with no transaction with the Company could not exceed 40% of the Company’s net equity as of September 30, 2021.

(2) The Company grants financing to a related party even if the Company has no normal business transactions with the entity. However, such financing is limited to 25% of the related party’s equity based on the current independent auditor’s report.

(3) The Company grants financing to an entity even if the Company has no normal business transactions with the entity. However, such financing is limited to 20% of the Company’s equity based on the current independent auditor’s report.

(4) The ceiling on loans granted by a subsidiary to others shall not be more than 100% of the Company's net assets, and ceiling on loans granted a short-term financing borrower with no business transactions shall not be more than 40% of the Company's net assets.

Note 3: The ending balance was approved by the Board of Directors.

Note 4: The exchange rate of NTD to CNY for the highest balance of financing to other parties during the period and for the ending balance was TWD 4.297 to CNY1; and the exchange rate for the actual usage during the period was TWD4.2967280 to CNY1.

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements

(ii) Guarantees and endorsements for other parties:

(In Thousands of New Taiwan Dollars)

No.	Name of guarantor	Counter-party of guarantee and endorsement	Counter-party of guarantee and endorsement	Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements	Parent company endorsements/ guarantees to third parties on behalf of subsidiary	Subsidiary endorsements/ guarantees to third parties on behalf of parent company	Endorsements/ guarantees to third parties on behalf of companies in Mainland China
		Name	Relationship with the Company
0 0 0	The Company The Company The Company	Formosa Group (Cayman) Limited Formosa Ha Tinh (Cayman) Limited Formosa Resources Corporation	6 6 6	249,790,374 249,790,374 249,790,374	7,132,750 18,903,708 3,067,083	6,966,500 8,441,949 -	6,966,500 8,441,949 -	- - -	% 1.81 % 2.20 % -	499,580,748 499,580,748 499,580,748	N N N	N N N	N N N

Note 1: The guarantees and endorsements of the Company and its subsidiaries were listed in the form of numbers with the rules below:

(1) The Company is represented by 0.
(2) The subsidiaries are represented numerically starting from 1.
Note 2: There are seven conditions in which the Company may have guarantees or endorsements for other parties as follows:
(1) The Company has business relationship.
(2) The Company holds directly and indirectly more than 50% of the voting shares of the subsidiaries.
(3) In aggregate, the Company holds directly or its subsidiaries hold indirectly more than 50% of the investee.
(4) Subsidiaries in which the Company holds directly or indirectly more than 90% of the voting shares make endorsement and guarantees for each other.
(5) The Company is required to provide guarantees or endorsements for the construction project based on the construction contract.
(6) The stockholders of the Company provide guarantees or endorsements for the investee in proportion to their stockholding percentage.
(7) According to Consumer Protection Act, companies are required to provide guarantees and endorsements for joint and several liability if take part in business of preconstruction real estate.
Note 3: In accordance with Company's procedures of endorsements and guarantees, limit on the Company's total guarantee amount is 130% of the Company's net assets, the limit on endorsement/guarantee to a single party is 50% of the aforementioned total amount.

(iii) Securities held as of September 30, 2021 (excluding investment in subsidiaries, associates and joint ventures):

(In Thousands of New Taiwan Dollars)

Name of holder	Category and name of security	Relationship with company	Account title	Ending balance	Ending balance	Ending balance	Ending balance	Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
The Company The Company The Company The Company The Company The Company	Asian Pacific Investment Corp. Mai-Liao Harbor Administration Corp. Taiwan Aerospace Corp. Chinese Television System Inc. China Investment & Development Co., Ltd. Formosa Plastics Development Corp.	Other related parties Other related parties - - - Other related parties	Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current	68,743 39,574 1,103 1,769 1,287 19,088	2,542,804 1,036,030 15,392 41,152 16,782 281,315	% 16.17 % 17.99 % 0.81 % 1.05 % 0.80 % 18.00	2,542,804 1,036,030 15,392 41,152 16,782 281,315

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements

Name of holder	Category and name of security	Relationship with company	Account title		Ending balance	Ending balance		Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company Formosa Plastics Corp. (Cayman Ltd) The Company The Company The Company The Company	Xiangho Aircraft Leasing Corp. Formosa Petrochemical Transportation Corporation, Ltd. Formosa Technologies Corporation Formosa Plastics Marine Corp. Formosa Group Ocean Investment Corp. Formosa Plastics Maritime Corp. Guangyuan Investment Corp. Central Leasing International Corp. Inteplast Taiwan Corporation Mega Growth Venture Capital Co., Ltd. Minima Technology Co., Ltd. Formosa Ha Tinh (Cayman) Limited PuriBlood Medical Swancor (Jiangsu) Carbon Fiber Composite Co., Ltd. Nan Ya Plastics Corporation Formosa Chemicals & Fibre Corporation Nan Ya Technology Corp. Mega Prosperity Private Placement Fund	Other related parties Other related parties Other related parties Other related parties Other related parties - - Other related parties - - Other related parties - - Other related parties Other related parties Other related parties -	Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Financial assets at fair value through other comprehensive income- non-current Current financial assets at fair value through other comprehensive income Current financial assets at fair value through other comprehensive income Current financial assets at fair value through other comprehensive income Current financial assets at fair value through profit or loss	2,071 2,642 2,925 2,429 3 354 3,750 2,373 2,160 2,500 7,405 621,178 1,300 - 783,357 198,744 334,815 12,479	- 99,799 155,522 702,172 1,764,438 305,691 39,937 - 293,407 20,250 185,273 16,444,265 40,820 23,985,049 170,130 24,155,179 71,677,153 16,674,616 22,064,336 110,416,105 3,814,798	% 9.55 % 12.00 % 12.50 % 15.00 % 19.00 % 18.11 % 3.91 % 1.43 % 18.00 % 1.97 % 19.07 % 11.43 % 9.14 % 16.11 % 9.88 % 3.39 % 10.85 % 25.00	- 99,799 155,522 702,172 1,764,438 305,691 39,937 - 293,407 20,250 185,273 16,444,265 40,820 23,985,049 170,130 24,155,179 71,677,153 16,674,616 22,064,336 110,416,105 3,814,798

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements

(iv) Individual securities acquired or disposed of with accumulated amount exceeding the lower of $300 thousand or 20% of the capital stock:

(In Thousands of New Taiwan Dollars)

Name of company	Category and name of security	Account name	Name of counter-party	Relationshi with the company	p Beginning Balance Shares Amount	p Beginning Balance Shares Amount	Purchases	Purchases	Sales	Sales	Sales	Sales	Ending Balance	Ending Balance
						Amount	Shares	Amount	Shares	Price	Cost	Gain (loss) on disposal	Shares	Amount
The Company The Company	Securities-Formosa Resources Corporation Securities-Formosa Tokuyama Advanced Chemicals Co., Ltd.	Investments accounted for using equity method Investments accounted for using equity method	Formosa Resources Corporation Formosa Tokuyama Advanced Chemicals Co., Ltd.	Associates Joint venture	741,594 12,500	6,169,287 124,934	88,453 37,500	884,531 375,000	- -	- -	- -	- -	830,047 50,000	7,085,754 (Note 1) 460,820 (Note 2)

Note 1: The ending balance includes the share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method of $31,936 thousand. Note 2 : The ending balance includes the share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method of ($39,114) thousand.

(v) Acquisition of individual real estate with amount exceeding the lower of $300 thousand or 20% of the capital stock:

							(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Name of company	Name of property	Transaction date	Transaction amount	Status of payment	Counter- party	Relationship with the Company	If the counter-party is a related party, disclose the previous transfer information				References for determining price	Purpose of acquisition and current condition	Others
							Owner	Relationshi p with the Company	Date of transfer	Amount
The company	Kaohsiung． Land	June 18, 2021	591,001	591,001	SHIYU METAL CO., LTD.	none	-	-	-	-	refer to market value and appraisal report	Shipping center	none

(vi) Disposal of individual real estate with amount exceeding the lower of $300 thousand or 20% of the capital stock: None.
(vii) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$100 million or 20% of the capital stock:

(In Thousands of New Taiwan Dollars)

Name of company	Related party	Nature of relationship	Transaction details	Transaction details	Transaction details	Transaction details	Transactions wit from	h terms different others	Notes/Accounts receivable (payable)	Notes/Accounts receivable (payable)	Note
			Purchase/Sale	Amount	Percentage of total purchases/sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company	Nan Ya Plastics Corporation Formosa Chemicals & Fiber Corporation Formosa Petrochemical Corporation Formosa Chemicals Industries (Ningbo) Co., Ltd Formosa Heavy Industries Corp. Formosa Taffeta Co. Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Formosa Industries Corp., Vietnam Formosa Industries (Ningbo) Co., Ltd. Formosa Plastics Corp., U.S.A.	Other related parties 〃 Associates Other related parties Associates Other related parties Other related parties Other related parties Parent- subsidiary Associates	(Sales) 〃〃〃〃〃〃〃〃〃	(11,859,387) (4,956,214) (5,082,984) (1,589,363) (136,867) (147,210) (409,747) (320,105) (9,380,631) (1,722,387)	% (7.73) % (3.23) % (3.31) % (1.03) % (0.09) % (0.10) % (0.27) % (0.21) % (6.12) % (1.12)	Before the 27th of the following month Before the 27th of the following month Before the 27th of the following month O/A 60 days Before the 27th of the following month Before the 27th of the following month O/A 60 days O/A 60 days O/A 90 days O/A 90 days	- - - - - - - - - -		1,375,926 483,959 559,274 326,973 4,138 17,746 166,716 28,857 1,607,957 884,104	9.43% 3.32% 3.83% 2.24% 0.03% 0.12% 1.14% 0.20% 11.02% 6.06%	Note 1

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements

Name of company	Related party	Nature of relationship	Transaction details	Transaction details	Transaction details	Transaction details	Transactions with terms different from others	Transactions with terms different from others	Notes/Accounts receivable (payable)	Notes/Accounts receivable (payable)	Note
			Purchase/Sale	Amount	Percentage of total purchases/sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
The Company Formosa Industries (Ningbo) Co., Ltd. Formosa Industries (Ningbo) Co., Ltd. Formosa Industries (Ningbo) Co., Ltd. Formosa Industries (Ningbo) Co., Ltd. Formosa Industries (Ningbo) Co.,Ltd Formosa Industries Corporation Formosa Industries Corporation The Company The Company The Company The Company The Company The Company Formosa Industries (Ningbo) Co., Ltd. Formosa Industries (Ningbo) Co., Ltd. Formosa Industries Corporation U.S.A	Inteplast Taiwan Corporation The Company Nan Ya Plastics Film (Nantong) Co., Ltd. Nan Ya Plastics (Xiamen) Co., Ltd. Nan Ya Plastics (Guangzhou) Co., Ltd. Nan Ya Plastics (Huizhou) Co.,Ltd The Company INTEPLAST GROUP Nan Ya Plastics Corporation Formosa Chemicals & Fiber Corporation Formosa Petrochemical Corporation Formosa Heavy Industries Corp. Formosa Industries (Ningbo) Co., Ltd. Formosa Industries Corporation U.S.A The Company Nan Ya Plastics Corporation Formosa Plastics Corp., U.S.A.	Other related parties Parent- subsidiary Other related parties 〃〃〃 Parent- subsidiary Other related parties 〃〃 Associates 〃 Parent- subsidiary Parent- subsidiary Parent- subsidiary Other related parties Associates	(Sales) 〃〃〃〃〃〃 Purchase 〃〃〃〃〃〃〃	(202,845) (1,259,015) (1,048,486) (239,224) (453,015) (100,791) (385,507) (1,561,444) 1,614,129 1,954,765 60,178,941 1,086,638 1,259,015 385,507 20,630,042 1,162,495 6,100,908	% (0.13) % (2.64) % (2.20) % (0.50) % (0.95) % (0.21) % (4.24) % (17.18) % 1.68 % 2.03 % 62.46 % 1.13 % 1.31 % 0.40 % 45.54 % 2.57 % 95.91	Before the 27th of the following month Before the 30th of the following month Before the 30th of the following month Before the 30th of the following month Before the 30th of the following month Before the 30th of the following month Before the 10th of the following month Before the 10th of the following month Before the 27th of the following month Before the 27th of the following month Before the 27th of the following month Before the 27th of the following month O/A 90 days O/A 90 days O/A 90 days O/A 90 days Before the 10th of the following month	- - - - - - - - - - - - - - - - -		20,464 33,314 163,723 68,387 81,877 18,804 10,175 226,062 (226,127) (253,065) (7,413,918) (5,452) (33,314) (10,175) (3,026,440) (219,012) (787,809)	0.14% 0.42% 2.08% 0.87% 1.04% 0.24% 1.14% 25.43% (2.01)% (2.25)% (66.04)% (0.05)% (0.30)% (0.09)% (51.89)% (3.76)% (95.16)%	Note 1 Note 1 Note 1 Note 1 Note、 Note 1
Note: Including the purchases of raw materials on be			half of related parties.

Note 1: The transaction has already been written off in the consolidated financial statements.

(viii) Receivables from related parties with amounts exceeding the lower of $100 thousand or 20% of the capital stock:

(In Thousands of New Taiwan Dollars)

Name of company	Counter-party	Nature of relationship	Ending balance	Turnover rate	Overdue	Overdue	Amounts received in subsequent period	Allowance for bad debts	Note
					Amount	Action taken
The Company The Company	Nan Ya Plastics Corporation Formosa Chemicals & Fiber Corporation	Other related parties Other related parties	1,375,926 483,959	% 12.12 % 13.99	- -		1,160,364 471,895	- -

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements

Name of company	Counter-party	Nature of relationship	Ending balance	Turnover rate	Overdue	Overdue	Amounts received in subsequent period	Allowance for bad debts	Note
					Amount	Action taken
The Company The Company The Company The Company The Company The Company The Company The Company Formosa Industries (Ningbo) Co., Ltd. Formosa Industries (Ningbo) Co., Ltd. Formosa Industries (Ningbo) Co., Ltd. Formosa Industries Corporation U.S.A	Formosa Petrochemical Corporation Nan Ya Plastics (Guangzhou) Co., Ltd. Formosa Chemicals Industries (Ningbo) Co., Ltd Formosa Industries (Ningbo) Co., Ltd. Formosa Plastics Corp., U.S.A. Formosa Group Ocean Marine Corp. Formosa Industries (Ningbo) Co., Ltd. Fujian Fuxin Special Steel Co., Ltd Formosa Mitsui Advanced Chemical (Ningbo) Co., Ltd. Formosa Heavy Industries (Ningbo) Corp. The Nan Ya Plastics (Nantong) Co., Ltd. INTEPLAST GROUP	Associates Other related parties Other related parties Parent-subsidiary Associates Other related parties Parent-subsidiary Associates Joint venture Associates Other related parties Other related parties	559,274 166,716 326,973 1,607,957 884,104 2,950,489 1,418,483 1,881,328 631,573 2,148,364 163,723 226,062	% 13.83 % 3.55 % 6.49 % 8.88 % 3.50 % - % 11.87 % - % - % - % 16.84 % 13.06	- - - - - - - - - - - -		458,049 3,066 - 103,916 167,247 - - - - - - -	- - - - - - - - - - - -	Note Note

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Note: The transaction has already been written off in the consolidated financial statements.
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(ix) Trading in derivative instruments: Please refer to notes .
(x) Business relationships and significant intercompany transactions:

(In Thousands of New Taiwan Dollars)

				(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
No.	Name of company	Name of counter-party	Nature of relationship	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0 0 0 0 1 1 2 2	The Company The Company The Company The Company Formosa Industries (Ningbo) Co., Ltd Formosa Industries (Ningbo) Co., Ltd Formosa Industries Corporation U.S.A Formosa Industries Corporation U.S.A	Formosa Industries (Ningbo) Co., Ltd. Formosa Industries (Ningbo) Co., Ltd. Formosa Industries (Ningbo) Co., Ltd. Formosa Industries (Ningbo) Co., Ltd. The Company The Company The Company The Company	1 1 1 1 2 2 2 2	Sales Accounts receivable Other revenue (Note 3) Other receivables－ related parties Sales Accounts receivable Sales Accounts receivable	9,380,631 1,607,957 11,249,411 1,418,483 1,259,015 33,314 385,507 10,175	O/A 90 days 〃 O/A 60 days 〃 Before the 30th of the following month 〃 Before the 10th of the following month 〃	4.71% 0.31% 5.65% 0.27% 0.63% 0.01% 0.19% -%

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Note 1: Assigned numbers represent the following:
1. 0 represents the parent company.
----- End of picture text -----

The subsidiaries are represented numerically starting from 1.

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Note 2: The terms of transactions are defined as follows:
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Represents the parent company having transaction with a subsidiary.
Represents a subsidiary having transaction with the parent company. 3. Represents a subsidiary having transaction with a subsidiary.

Note 3: Including the purchases of raw materials on behalf of related parties.

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements

(b) Information on investees:

The following is the information on investees for the nine months ended September 30, 2021 (excluding information on investees in Mainland China):

in Mainland China):	in Mainland China):	in Mainland China):	in Mainland China):
						(In Thousands of New Taiwan Dollars) Balance as of September 30, 2021 Net income Share of Shares (thousands) Percentage of ownership Carrying value (losses) of investee profits/losses of investee Note 2,720,549 % 28.56 99,042,895 41,795,832 11,819,181 Note, Note 2 70 % 22.66 64,024,126 18,286,065 4,143,202 Note, Note 2 656,639 % 32.92 7,146,841 415,055 129,433 Note, Note 2 425,800 % 50.00 4,374,606 (545,764) (272,882) Note, Note 2 78 % 100.00 48,439,830 6,189,802 6,189,802 Note, Note 1 764,201 % 24.94 12,567,737 901,022 224,734 Note, Note 2 112,708 % 29.06 5,960,535 1,029,156 299,069 Note, Note 2 6,566 % 33.33 1,204,510 203,384 67,794 Note, Note 2 4,698 % 33.33 53,705 (43,626) (14,541) Note 2 1,200 % 28.72 19,696 (54) (16) Note 2 1,306 % 45.04 17,956 (316) (142) Note 2 50 % 50.00 1,398,573 321,983 160,992 Note 2 27,044 % 45.00 412,564 340,521 153,230 Note 2 33 % 33.00 3,032 10 3 Note 2 24 % 50.00 1,323,940 227,739 113,869 Note 2 830,047 % 25.00 7,085,754 127,743 31,936 Note, Note 2 41,714 % 24.34 228,959 6,705 1,632 Note, Note 2 60,000 % 33.33 581,770 40,106 13,368 Note 2 13 % 25.00 656,844 89,604 22,401 Note, Note 2 5 % 100.00 12,738,466 2,233,744 2,233,744 Note, Note 1 50,000 % 50.00 460,820 (78,229) (39,114) Note 2 - % 100.00 48,262,164 (USD1,731,937) 6,201,525 (USD220,906) 6,201,525 (USD220,906) Note, Note 1, Note 3 - % 33.00 4,810,254 (USD172,621) 6,052,787 (USD215,607) 1,997,419 (USD71,150) Note 2, Note 3 - % 38.00 - (USD-) (347,587) (USD-12,381) (132,083) (USD-4,705) Note 2, Note 3
Name of investor	Name of investee	Location	Main businesses and products	Original investment amount		Balance as of September 30, 2021			Net income (losses) of investee	Share of profits/losses of investee	Note
				September 30, 2021	December 31, 2020	Shares (thousands)	Percentage of ownership	Carrying value
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company Formosa Plastics Corp. (Cayman) Ltd. Formosa Industries Corporation U.S.A Formosa Industries Corporation U.S.A	Formosa Petrochemical Corporation Formosa Plastics Corp., U.S.A. Formosa Heavy Industries Corp. Sky Dragon Investment Limited Formosa Plastics Corp. (Cayman Ltd.) Mai Liao Power Corp. Formosa Sumco Technology Corp. Formosa Transportation Corp. Formosa Fairway Corp. Yi-Jih Development Corp. Ya Tai Development Corp. Formosa Asahi Spandex Co., Ltd. Formosa Automobile Corporation Wha Ya Park Management Consulting Corporation Ltd. Formosa Daikin Advanced Chemical Co., Ltd. Formosa Resources Corporation Formosa Environmental Technology Corporation Formosa Plastics Construction Corporation Formosa Group (Cayman) Limited Formosa Industries Corporation U.S.A Formosa Tokuyama Advanced Chemicals Co., Ltd. Formosa Industries (Hong Kong) Limited Formosa Olefins, L.L.C. Lolita Packaging, L.L.C.	Taiwan U.S.A Taiwan Samoa Cayman Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Cayman U.S.A Taiwan Hong Kong U.S.A U.S.A	Petrochemicals Chemicals Mechanical equipment Investment Investment Electricity Electronics manufacture Transportation Transportation Construction Development of land Artificial fiber Automobile Consulting service Chemical industry Mining industry Environmental industry Construction Investment Chemicals Semiconductor Reinvestment Olefins Transportation	30,144,951 5,614,024 2,498,463 13,221,416 27,347,136 5,985,531 1,709,987 110,664 33,330 12,003 54,034 501,752 270,442 341 100,000 8,300,471 417,145 600,000 377 15,640,245 500,000 15,801,889 (USD501,902) 3,527,939 (USD108,075) 306,478 (USD9,880)	30,144,951 5,614,024 2,498,463 13,221,416 27,218,686 5,985,531 1,709,987 110,664 33,330 12,003 54,034 501,752 270,442 341 100,000 7,415,940 417,145 600,000 377 15,640,245 125,000 15,801,889 (USD501,902) 3,527,939 (USD108,075) 306,478 (USD9,880)	2,720,549 70 656,639 425,800 78 764,201 112,708 6,566 4,698 1,200 1,306 50 27,044 33 24 830,047 41,714 60,000 13 5 50,000 - - -	% 28.56 % 22.66 % 32.92 % 50.00 % 100.00 % 24.94 % 29.06 % 33.33 % 33.33 % 28.72 % 45.04 % 50.00 % 45.00 % 33.00 % 50.00 % 25.00 % 24.34 % 33.33 % 25.00 % 100.00 % 50.00 % 100.00 % 33.00 % 38.00	99,042,895 64,024,126 7,146,841 4,374,606 48,439,830 12,567,737 5,960,535 1,204,510 53,705 19,696 17,956 1,398,573 412,564 3,032 1,323,940 7,085,754 228,959 581,770 656,844 12,738,466 460,820 48,262,164 (USD1,731,937) 4,810,254 (USD172,621) - (USD-)	41,795,832 18,286,065 415,055 (545,764) 6,189,802 901,022 1,029,156 203,384 (43,626) (54) (316) 321,983 340,521 10 227,739 127,743 6,705 40,106 89,604 2,233,744 (78,229) 6,201,525 (USD220,906) 6,052,787 (USD215,607) (347,587) (USD-12,381)	11,819,181 4,143,202 129,433 (272,882) 6,189,802 224,734 299,069 67,794 (14,541) (16) (142) 160,992 153,230 3 113,869 31,936 1,632 13,368 22,401 2,233,744 (39,114) 6,201,525 (USD220,906) 1,997,419 (USD71,150) (132,083) (USD-4,705)	Note, Note 2 Note, Note 2 Note, Note 2 Note, Note 2 Note, Note 1 Note, Note 2 Note, Note 2 Note, Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note, Note 2 Note, Note 2 Note 2 Note, Note 2 Note, Note 1 Note 2 Note, Note 1, Note 3 Note 2, Note 3 Note 2, Note 3

Note ： Including cumulative translation adjustments.

Note 1：The transaction has already been written off in the consolidated financial statements.

Note 2：Long-term equity investments under equity method.

Note 3： The exchange rate of New Taiwan dollars to US dollars on September 30, 2021, was 27.8660 to 1. The average exchange rate of New Taiwan dollars to US dollars for the nine months ended September 30, 2021, was 28.0732 to 1.

(c) Information on overseas branches and representative offices:

(i) The names of investees in Mainland China, the main businesses and products, and other information:

(In Thousands of New Taiwan Dollars)

Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2021	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of September 30, 2021	Net income (losses) of the investee	Percentage of ownership	Investment income (losses) (Note 3)	Book value	Accumulated remittance of earnings in currentperiod
					Outflow	Inflow
Formosa Industries (Ningbo) Co., Ltd. (note 2) Formosa Electronic (Ningbo) Co., Ltd. (note 2) Formosa Mitsui Advanced Chemical Co., Ltd.	Plastics Electronics Electrolyte	31,188,509 (USD989,023) 74,648 (USD2,260) 501,096 (USD17,400)	( 2 ) ( 2 ) ( 2 )	26,928,755 (USD845,270) 66,137 (USD2,000) 122,098 (USD4,100)	- - 128,450 (USD4,600)	- - -	26,928,755 (USD845,270) 66,137 (USD2,000) 250,548 (USD8,700)	6,160,855 (USD219,457) 40,671 (USD1,449) (23,264) (USD-829)	100.00% 100.00% 50.00%	6,160,855 (USD219,457) 40,671 (USD1,449) (11,632) (USD-414)	47,829,152 (USD1,716,398 433,012 (USD15,539 91,042 (USD3,267	) - ) - ) -

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements

Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2021	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of September 30, 2021	Net income (losses) of the investee	Percentage of ownership	Investment income (losses) (Note 3)	Book value	Accumulated remittance of earnings in currentperiod
					Outflow	Inflow
Fujian Fuxin Special Steel Co., Ltd Swancor (Jiangsu) Carbon Fiber Composite Co., Ltd.	Steel Carbon fiber	34,347,344 (USD1,460,000) 616,986 (USD19,000)	( 2 ) ( 2 )	13,221,416 (USD425,800) 99,993 (USD3,060)	- -	- -	13,221,416 (USD425,800) 99,993 (USD3,060)	(935,632) (USD-33,328) 67,604 (USD2,408)	29.16% 16.11%	(272,871) (USD-9,720) -	4,374,191 (USD15,697) 170,130 (USD6,105)	- -

Note 1: Investment methods are classified into the following three categories. (1) Directly invest in a company in Mainland China.
(2) Through investing in an existing company in the third area, which then invested in the investee in Mainland China. (3) Others.

Note 2: The transaction has already been written off in the consolidated financial statements.

Note 3 : The amount is based on financial statements reviewed by CPA of Formosa Plastic Corp.(the mother company), except for Formosa Mitsui Advanced Chemical Co., LTD and Fujian Fuxin Special Steel Co., Ltd., which are evaluated based on financial statements that have not been reviewed, and for Swanc or (Jiangsu) Carbon Fiber Composite Co., Ltd., which is evaluated as financial assets at fair value through other comprehensive income- non-current.

(ii) Limitation on investment in Mainland China:

itation on investment in Mainland China:
Accumulated Investment in Mainland China as of September 30, 2021	Investment Amounts Authorized by Investment Commission, MOEA (Note 1)	Upper Limit on Investment (Note 2)
40,566,849 (USD 1,284,830)	39,816,139 (USD 1,428,843)	-

Note: The exchange rate of New Taiwan dollars to US dollars on September 30, 2021, was 27.866 to 1.

Note 1: Including US$144,013 thousand approved capital increase out of retained earnings.

Note 2: The Industrial Development Bureau of the MOEA issued a letter to the Company stating that it qualifies under Section 12 of the Statute for Upgrading Industries.

(iii) Significant transactions:

The significant inter-company transactions with the subsidiary in Mainland China, which were eliminated in the preparation of consolidated financial statements, are disclosed in “Information on significant transactions”.

(d) Major shareholders:

Major shareholders:
Shareholding Shareholder’s Name	Shares	Percentage
Chang Gung Medical Foundation	601,011,035	% 9.44
Formosa Chemicals and Fiber Corporation	486,978,693	% 7.64
The business department of Standard Chartered International Commercial Bank is entrusted with the custody of Credit Suisse Bank-Credit Suisse Singapore Branch investment account	398,731,554	% 6.26

(i) The information on major shareholders, which is provided by the Taiwan Depository & Clearing Corporation, summarized the shareholders who held over 5% of total non-physical common stocks and preferred stocks (including treasury stocks) on the last business date of each quarter. The registered non-physical stocks may be different from the capital stocks disclosed in the financial statement due to different calculations basis.

(ii) If shares are entrusted, the above information regarding such shares will be revealed by each trustors of individual trust account, The shareholders holding more than 10% of the total shares of the company should declare insider’ s equity according to Securities and Exchange Act. The numbers of the shares declared by the insider include the shares of the trust assets which the insider has discretion over use. For details of the insider’s equity announcement please refer to the TWSE website.

(Continued)

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(14) Information on investment in mainland China:

Operating segments are combined and reconciled as follows:

		For the t	hree months end	ed September 30, 2021	ed September 30, 2021		Total 66,936,398 -
Plastic division $ 21,826,330 323,303 $ 22,149,633 $ 5,040,176	Polyolefin division 14,172,708 6,877 14,179,585 3,519,446	Polypropylene division 9,682,700 15,696 9,698,396 483,577 For the t	Tairylan division 12,084,985 39,095 12,124,080 3,322,455 hree months end	Chemistry division Others divisions 8,363,643 805,684 489,044 2,296,239 8,852,687 3,101,923 2,122,981 (294,648) ed September 30, 2020		Adjustments and eliminated 348 (3,170,254) (3,169,906) 8,318,689
							66,936,398
							22,512,676
							Total 46,174,862 -
Plastic division $ 14,833,747 301,769 $ 15,135,516 $ 1,589,480	Polyolefin division 10,182,176 5,576 10,187,752 723,605	Polypropylene division 9,045,277 12,401 9,057,678 984,339 For the n	Tairylan division 6,874,332 18,144 6,892,476 (52,209) ine months end	Chemistry division Others divisions 4,333,692 905,638 283,045 2,106,522 4,616,737 3,012,160 38,900 531,669 ed September 30, 2021		Adjustments and eliminated - (2,727,457) (2,727,457) 7,365,607
							46,174,862
							11,181,391
							Total 199,191,244 -
Plastic division $ 66,193,394 947,524 $ 67,140,918 $ 19,052,572	Polyolefin division 42,649,732 22,798 42,672,530 10,121,388	Polypropylene division 29,931,643 41,914 29,973,557 2,998,633 For the n	Tairylan division 33,036,784 100,381 33,137,165 7,929,147 ine months end	Chemistry division Others divisions 24,749,355 2,629,988 1,454,847 5,937,865 26,204,202 8,567,853 7,189,381 124,212 ed September 30, 2020		Adjustments and eliminated 348 (8,505,329) (8,504,981) 17,741,383
							199,191,244
							65,156,716

Plastic division $ 43,554,852 961,419 $ 44,516,271 $ 5,084,509 Plastic division $ 30,933,865 $ 28,996,176 $ 26,107,022 Plastic division $ 4,568,507 $ 4,860,295 $ 3,042,193	Polyolefin division 27,616,137 564,740 28,180,877 528,526 Polyolefin division 39,737,934 37,366,934 37,272,892 Polyolefin division 16,818,215 17,188,904 17,264,744	Polypropylene division 24,372,083 34,159 24,406,242 2,470,336 Polypropylene division 26,748,620 18,838,077 17,530,783 Polypropylene division 3,100,153 2,278,123 2,817,125	Tairylan division 19,672,857 46,239 19,719,096 (887,006) Tairylan division 25,764,712 21,677,004 22,175,910 Tairylan division 1,811,204 1,536,343 1,609,605	Chemistry division 13,157,240 899,245 14,056,485 675,059 Chemistry division 7,354,230 5,859,038 4,865,459 Chemistry division 699,028 310,147 84,576	Others divisions 2,804,975 4,804,324 7,609,299 953,406 Others divisions 459,241,603 421,068,884 399,892,973 Others divisions 114,777,217 121,577,220 131,100,116	Adjustments and eliminated - (7,310,126) (7,310,126) 2,379,115 Adjustments and eliminated (63,219,120) (54,525,690) (65,364,448) Adjustments and eliminated 494,637 (1,006,749) (6,073,230)	Total 131,178,144 -
							131,178,144
							11,203,945
							Total 526,561,844
							479,280,423
							442,480,591
							Total 142,268,961
							146,744,283
							149,845,129

AI assistant

FPC — Interim / Quarterly Report 2021

51762_rns_2021-12-02_a204c4a3-a12e-4d03-95c7-c7331913156e.pdf

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Financial Statements

Table of contents

KPMG

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

Other Matter

KPMG

Notes to Readers

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Balance Sheets

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and nine months ended September 30, 2021 and 2020

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the nine-month periods ended September 30, 2021 and 2020

Notes to the Consolidated Financial Statements

September 30, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

(2) Approval date and procedures of the consolidated financial statements:

(3) New standards, amendments and interpretations adopted:

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(4) Summary of significant accounting policies:

(a) Statement of compliance

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Employee Benefits

(d) Income Tax

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

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts:

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(d) Other receivables

(e) Inventories

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Joint ventures

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Collaterals

(g) Property, plant and equipment

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Collaterals

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(k) Long-term debts

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(l) Bonds payable

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(m) Lease liabilities

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Other leases

(n) Employee benefits

(i) Defined benefit plan

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(o) Income tax

(p) Capital and other equity

FORMOSA PLASTICS CORPORATION AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Capital surplus

FPC Interim / Quarterly Report 2021