GBM - Annual Report 2020 | FinancialReports.eu

GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS WITH REPORT OF INDEPENDENT AUDITORS

FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019

Address: 7F, No.8, Xinhu 1st Rd., Neihu Dist., Taipei City, Taiwan (R.O.C.)

The reader is advised that these financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail.

GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES

INDEX

Items Cover Index Representation Letter Report of Independent Auditors Consolidated Balance Sheets Consolidated Statements of Comprehensive Income Consolidated Statements of Changes in Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements	Pages
	1 2 3 4-7 8-9 10 11 12 13-118

REPRESENTATION LETTER

The entities included in the consolidated financial statements as of December 31, 2020 and for the year then ended prepared under the International Financial Reporting Standards, No.10 are the same as the entities to be included in the combined financial statements of the Company, if any to be prepared, pursuant to the Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises (referred to as “Combined Financial Statements”). Also, the footnotes disclosed in the Consolidated Financial Statements have fully covered the required information in such Combined Financial Statements. Accordingly, the Company did not prepare any other set of combined financial statements than the Consolidated Financial Statements.

Very truly yours,

GOLDSUN BUILDING MATERIALS CO., LTD.

Chairman: Hus, Lan-Ying

March 15, 2021

安永聯合會計師事務所

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11012 台北市基隆路⼀段 333 號 9 樓電話 Tel: 886 2 2757 8888 9F, No. 333, Sec. 1, Keelung Road 傳真 Fax: 886 2 2757 6050 Taipei City, Taiwan, R.O.C. ey.com/zh_tw

Independent Auditors’ Report Translated from Chinese

To GOLDSUN BUILDING MATERIALS CO., LTD.

Opinion

We have audited the accompanying consolidated balance sheets of GOLDSUN BUILDING MATERIALS CO., LTD. and its subsidiaries (the “Group”) as of December 31, 2020 and 2019, and the related consolidated statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2020 and 2019, and notes to the consolidated financial statements, including the summary of significant accounting policies (together “the consolidated financial statements”).

In our opinion, based on our audits and the reports of other auditors (please refer to the Other Matters section), the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2020 and 2019, and their consolidated financial performance and cash flows for the years ended December 31, 2020 and 2019, in conformity with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed and became effective by Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Company and its subsidiaries in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China (the “Norm”), and we have fulfilled our other ethical responsibilities in accordance with the Norm. Based on our audits and the reports of other auditors, we believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the 2020 consolidated financial statements. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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Revenue Recognition

Revenue from contracts with customers that recognized by the Group amounted to NT$18,325,646 thousand for the year ended December 31, 2020, and the main source of revenue is the sale of premixed concrete, cement and calcium silicate board. The timing of sales was recognized when the performance obligations was satisfied that goods were delivered and accepted by the customers. Therefore, we considered this a key audit matter.

Our audit procedures included, but not limited to:

Assessing the appropriateness of the accounting policy of revenue recognition and the process of generating and recognizing revenue; evaluating and testing the design and operating effectiveness of internal controls around revenue recognition.
Selecting samples to perform tests of details, performing tests of transaction detail which included reviewing vouchers of selected samples and cash receipts record to confirm the performance obligations was satisfied.
Performing cutoff testing through periods before and after the balance sheet date by reviewing related documentation of selected samples.
Executing accounts receivable confirmation procedures to confirm with the Group’s customers. Moreover, performing other alternative audit procedures if customers do not return confirmations.

We also consider the appropriateness of the disclosures of operating revenue. Please refer to Note 6.

Other Matter – Making Reference to the Audits of Component Auditors

We did not audit the financial statements of certain consolidated subsidiaries, which statements reflected total assets in the amount of NT$1,041,625 thousand, constituting 3% of consolidated total assets as of December 31, 2020; and total operating revenues in the amount of NT$229.792 thousand, constituting 1% of consolidated operation revenues for the year ended December 31,2020. Those financial statements were audited by other auditors, whose reports thereon have been furnished to us, and our opinions expressed herein are based solely on the audit reports of the other auditors.

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the requirements of the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Financial Reporting Standards, International Accounting Standards, Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed by Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including audit committee or supervisors, are responsible for overseeing the financial reporting process of the Company and its subsidiaries.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control of the Company and its subsidiaries.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability to continue as a going concern of the Company and its subsidiaries. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company and its subsidiaries to cease to continue as a going concern.

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Evaluate the overall presentation, structure and content of the consolidated financial statements, including the accompanying notes, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company and its subsidiaries to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Company audit. We remain solely responsible for our audit opinion.

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

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

From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of 2020 consolidated financial statements and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

Others

We have audited and expressed an unqualified opinion including an Emphasis of Matter Paragraph on the parent company only financial statements of the Company as of and for the years ended December 31, 2020 and 2019.

Yu, Chien-Ju

Hsu, Hsin-Min

Ernst & Young, Taiwan March 15, 2021

Notice to Readers

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

Accordingly, the accompanying consolidated financial statements and report of independent accountants are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice. As the financial statements are the responsibility of the management, Ernst & Young cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

English Translation of Consolidated Financial Statements Originally Issued in Chinese

GOLDSUN BUILDING MATERIALS CO., LTD. CONSOLIDATED BALANCE SHEETS December 31, 2020 and December 31, 2019 (Expressed in Thousands of New Taiwan Dollars)

Assets	Notes	As	As	of	of
		December 31, 2020		December 31, 2019
		Amount	%	Amount	%
Current assets Cash and cash equivalents Financial assets at fair value through profit or loss, current Financial assets at fair value through other comprehensive income, current Financial assets at amortized cost, current Notes receivable, net Accounts receivable, net Accounts receivable-related parties, net Other receivables Other receivables-related parties Current tax assets Inventories, net Prepayments Other current assets Total current assets Non-current assets Financial assets at fair value through other comprehensive income, non-current Financial assets at amortized cost, non-current Investments accounted for under the equity method Property, plant and equipment Right-of-use assets Investment property, net Intangible assets Deferred tax assets Prepayment for equipment Refundable deposits Long-term receivable Other assets, non-current Total non-current assets Total assets	4 and 6 4 and 6 4,6 and 8 4,6 and 8 4,5,6 and 7 4,5 and 6 4,5,6 and 7 6 7 4 and 6 4,6 and 8 7 4,5,6 and 8 4,6 and 8 4,5 and 6 4, 6, 7 and 8 4,5 and 6 4,5,6 and 8 4,6 and 8 4,5 and 6 8 4,5 and 6	$2,485,369 994 762,048 145,063 1,664,346 5,793,284 7,094 408,544 11,852 - 752,976 500,440 1,755 12,533,765 1,199,607 22,478 741,639 9,074,291 792,837 3,976,371 3,875,104 789,780 68,678 47,726 1,604,142 2,492 22,195,145 $34,728,910	7 - 2 - 5 18 - 1 - - 2 1 - 36 3 - 2 26 2 13 11 2 - - 5 - 64 100	$3,685,521 949 723,269 108,030 1,409,124 6,393,089 3,976 1,337,695 13,453 680 560,337 665,388 4,295 14,905,806 1,507,834 93,082 873,871 8,919,507 905,063 4,274,644 3,717,413 489,393 32,715 75,387 1,247,705 2,573 22,139,187 $37,044,993	10 - 2 - 4 17 - 3 - - 2 2 - 40 4 - 2 24 2 13 11 1 - - 3 - 60 100

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

English Translation of Consolidated Financial Statements Originally Issued in Chinese

GOLDSUN BUILDING MATERIALS CO., LTD. CONSOLIDATED BALANCE SHEETS December 31, 2020 and December 31, 2019 (Expressed in Thousands of New Taiwan Dollars)

Liabilities and Equity	Notes	As	As	of	of
		December 31, 2020		December 31, 2019
		Amount	%	Amount	%
Current liabilities Short-term loans Short-term notes and bills payable Notes payable Notes payable - related parties Accounts payable Accounts payable - related parties Other payables Other payables - related parties Current tax liabilities Lease liabilities, current Other current liabilities Advanced receipts Current portion of long-term loans Total current liabilities Non-current liabilities Long-term loans Provisions, non-current Deferred tax liabilities Lease liabilities, non-current Net defined benefit liabilities, non-current Long-term notes and bills payable Guarantee deposits Total non-current liabilities Total liabilities Equity attributable to the parent Capital Common stock Additional paid-in capital Retained earnings Legal reserve Special reserve Unappropriated earnings Other components of equity Treasury stock Total equity attributable to the parent company Non-controlling interests Total equity Total liabilities and equity	4,6 and 8 6 and 8 7 7 6 7 4 and 5 4,6 and 7 6 4,6 and 8 4,6 and 8 4 and 6 4,5 and 6 4,6 and 7 4,5 and 6 4,6 and 8 7 4 and 6 6	$1,300,000 - 703,846 235 2,245,339 58,265 938,854 442 385,334 94,248 140,751 42,715 300,000 6,210,029 3,919,241 11,497 638,981 644,370 171,759 1,748,296 54,361 7,188,505 13,398,534 11,800,000 1,178,554 1,706,814 1,874,430 3,742,037 (97,717) (4,789) 20,199,329 1,131,047 21,330,376 $34,728,910	4 - 2 - 7 - 3 - 1 - - - 1 18 11 - 2 2 - 6 - 21 39 34 3 5 5 11 - - 58 3 61 100	$2,930,000 2,958,328 350,159 135 2,120,618 65,512 852,840 60 91,404 82,645 132,699 33,512 338,000 9,955,912 3,949,836 9,397 636,007 748,960 217,346 - 51,668 5,613,214 15,569,126 13,850,003 1,177,219 1,596,648 1,874,430 1,881,076 15,012 (10,039) 20,384,349 1,091,518 21,475,867 $37,044,993	9 8 1 - 6 - 2 - - - - - 1 27 10 - 2 2 1 - - 15 42 38 3 4 5 5 - - 55 3 58 100

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

English Translation of Consolidated Financial Statements Originally Issued in Chinese

GOLDSUN BUILDING MATERIALS CO., LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the years ended December 31, 2020 and 2019

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

Item	Notes	2020		2019
		Amount	%	Amount	%
Operating revenue Operating costs Gross profit Operating expenses Sales and marketing expenses General and administrative expenses Research and development expenses Expected credit losses Subtotal Operating income Non-operating income and loss Interest income Other income Other gains and losses Finance costs Share of profit or loss of associates and joint ventures Subtotal Income before income tax Income tax (expense) benefit Net income Other comprehensive income Items that will not be reclassified subsequently to profit or loss Remeasurements of defined benefit plans Unrealized gains on fair value through other comprehensive income equity instrument investment Income tax related to items that will not be reclassified Items that may be reclassified subsequently to profit or loss Exchange differences on translation of foreign operations Share of other comprehensive (loss) income of associates and joint ventures- may be reclassified subsequently to profit or loss Total other comprehensive (loss) income, net of tax Total comprehensive income Net income attributable to: Shareholders of the parent Non-controlling interests Comprehensive income attributable to: Shareholders of the parent Non-controlling interests Earnings per share (NT$) Basic earnings per share Diluted earnings per share	4,5,6 and 7 6 and 7 4,5,6 and 7 4,6 and 7 4,5 and 6 4 and 6 6	$18,877,800 (15,744,353) 3,133,447 (149,435) (603,410) (9,009) (48,036) (809,890) 2,323,557 31,147 294,638 34,239 (98,954) 121,167 382,237 2,705,794 (154,987) 2,550,807 2,483 (146,497) (497) (54,895) - (199,406) $2,351,401 $2,472,927 77,880 $2,550,807 $2,273,233 78,168 $2,351,401 $1.90 $1.90	100 (83) 17 (1) (4) - - (5) 12 - 2 - - 1 3 15 (1) 14 - (1) - - (1) 13	$19,005,069 (17,714,598) 1,290,471 (194,248) (673,103) (9,822) (49,067) (926,240) 364,231 24,468 155,946 724,527 (127,985) 129,637 906,593 1,270,824 (84,863) 1,185,961 (1,764) 222,803 353 (60,000) (374) 161,018 $1,346,979 $1,101,659 84,302 $1,185,961 $1,262,246 84,733 $1,346,979 $0.80 $0.80	100 (93) 7 (1) (4) - - (5) 2 - 1 4 (1) 1 5 7 (1) 6 - 1 - - - 1 7

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

English Translation of Consolidated Financial Statements Originally Issued in Chinese

GOLDSUN BUILDING MATERIALS CO., LTD. CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY For the years ended December 31, 2020 and 2019 (Expressed in Thousands of New Taiwan Dollars)

Description				Equity Att	ributable to the Pare	nt Company	nt Company			Non-Controlling Interests	Total Equity
	Common Stock	Additional Paid-in Capital		Retained Earnings		Other Components of Equity		Treasury Stock	Total
			Legal Reserve	Special Reserve	Unappropriated Earnings	Exchange Differences on Translation of Foreign Operations	Unrealized Gain or Loss on Financial Assets at fair value through other comprehensive income
Balance as of January 1, 2019 Appropriations and distributions of 2018 unappropriated earnings Legal reserve Cash dividends Other changes in capital reserve Donated surplus Net income in 2019 Other comprehensive (loss) income, net of tax in 2019 Total comprehensive income Parent company's cash dividends received by subsidiaries The differences between the fair value of the consideration paid or received from acquiring or disposing subsidiaries and the carrying amounts of the subsidiaries Decrease in non-controlling interests Disposal of equity instruments measured at fair value through other comprehensive income Balance as of December 31, 2019 Balance as of January 1, 2020 Appropriations and distributions of 2019 unappropriated earnings Legal reserve Cash dividends Other changes in capital reserve Donated surplus Net income in 2020 Other comprehensive (loss) income, net of tax in 2020 Total comprehensive income Capital reduction by cash Treasury stock acquired Treasury stock cancelled Parent company's cash dividends received by subsidiaries The differences between the fair value of the consideration paid or received from acquiring or disposing subsidiaries and the carrying amounts of the subsidiaries Decrease in non-controlling interests Disposal of equity instruments measured at fair value through other comprehensive income Balance as of December 31, 2020	$13,850,003 - - - - -	$1,177,912 - - 11 - -	$1,545,164 51,484 - - - -	$1,874,430 - - - - -	$1,183,489 (51,484) (346,250) - 1,101,659 (1,842)	$(436,859) - - - - (60,374)	$298,195 - - - - 222,803	$(10,039) - - - - -	$19,482,295 - (346,250) 11 1,101,659 160,587	$1,097,997 - - - 84,302 431	$20,580,292 - (346,250) 11 1,185,961 161,018
	-	-	-	-	1,099,817	(60,374)	222,803	-	1,262,246	84,733	1,346,979
	- - - -	910 (1,614) - -	- - - -	- - - -	- (13,249) - 8,753	- - - -	- - - (8,753)	- -	910 (14,863) - -	- (13,619) (77,593) -	910 (28,482) (77,593) -
	$13,850,003	$1,177,219	$1,596,648	$1,874,430	$1,881,076	$(497,233)	$512,245	$(10,039)	$20,384,349	$1,091,518	$21,475,867
	$13,850,003 - - - - -	$1,177,219 - - 179 - -	$1,596,648 110,166 - - - -	$1,874,430 - - - - -	$1,881,076 (110,166) (413,643) - 2,472,927 1,698	$(497,233) - - - - (54,895)	$512,245 - - - - (146,497)	$(10,039) - - - - -	$20,384,349 - (413,643) 179 2,472,927 (199,694)	$1,091,518 - - - 77,880 288	$21,475,867 - (413,643) 179 2,550,807 (199,406)
	-	-	-	-	2,474,625	(54,895)	(146,497)	-	2,273,233	78,168	2,351,401
	(1,988,093) - (61,910) - - - -	- - 69 1,092 (5) - -	- - - - - -	- - - - - -	- - - - (1,192) - (88,663)	- - - - - -	- - - - - 88,663	5,250 (61,841) 61,841 - - - -	(1,982,843) (61,841) - 1,092 (1,197) - -	- - - - (1,702) (36,937) -	(1,982,843) (61,841) - 1,092 (2,899) (36,937) -
	$11,800,000	$1,178,554	$1,706,814	$1,874,430	$3,742,037	$(552,128)	$454,411	$(4,789)	$20,199,329	$1,131,047	$21,330,376

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

English Translation of Consolidated Financial Statements Originally Issued in Chinese

GOLDSUN BUILDING MATERIALS CO., LTD. CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended December 31, 2020 and 2019 (Expressed in Thousands of New Taiwan Dollars)

Description		2020		2019
Cash flows from operating activities: Profit before tax from continuing operations Net income before tax Adjustments to reconcile net income before tax to net cash provided by operating activities: Depreciation Amortization Syndicated loan amortization Expected credit losses Interest expense Interest revenue Dividend income Gain on disposal of associate Gain on disposal of subsidiary Share of gain of associates and joint ventures Gain on disposal of property, plant and equipment Gain on disposal of investment property Gain on disposal of financial assets at fair value through profit or loss (Gain) loss on lease modification Changes in operating assets and liabilities: Notes receivable, net Accounts receivable, net Accounts receivable-related parties, net Other receivables Other receivables-related parties Inventories, net Prepayments Other current assets Long-term receivable Notes payable Notes payable - related parties Accounts payable Accounts payable - related parties Other payables Other payables - related parties Other current liabilities Advanced receipts Lease liabilities, non-current Net defined liabilities, non-current Cash inflow generated from operations Interest received Interest paid Income tax paid Net cash provided by operating activities Cash flows from investing activities: Proceeds from disposal of financial assets at fair value through profit or loss Proceeds from disposal of financial assets at fair value through other comprehensive income Acquisition of financial assets at fair value through other comprehensive income Capital deducted by cash of financial assets at fair value through other comprehensive income (Increase) decrease in financial assets at amortized cost, current Decrease (increase) in financial assets at amortized cost, non-current Disposal of investments accounted for under the equity method Acquisition of investments accounted for under the equity method Proceeds from disposal of subsidiaries Proceeds from disposal of property, plant and equipment Acquisition of property, plant and equipment Disposal of investment property Acquisition of investment property Disposal of intangible assets Acquisition of intangible assets Disposal of subsidiary Increase in prepayment for equipment Decrease (Increase) in refundable deposits Decrease in other non-current assets Dividends received Net cash provided by investing activities Cash flows from financing activities: Decrease in bonds payable Decrease in short-term loans (Decrease) increase in short-term notes and bills payable Increase in long-term loans Decrease in long-term loans Increase in long-term notes and bills payable Increase (decrease) in guarantee deposits Cash payments for the principal portion of the lease liability Capital reduction by cash Treasury stock acquired Cash dividends paid Donated surplus Changes in non-controlling interests Net cash (used in) provided by financing activities Effect of exchange rate changes on cash and cash equivalents Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year		$2,705,794 2,705,794 494,367 102,611 405 48,036 98,954 (31,147) (91,863) (23,085) - (121,167) (3,983) 12,333 (30) (1,944) (255,743) 623,383 (3,118) (517,510) 1,601 (192,639) 180,909 2,540 (427,530) 353,552 235 124,721 (7,247) 36,644 382 8,052 9,203 - (43,601) 3,083,115 31,145 (91,346) (185,177) 2,837,737 - 214,428 (122,315) 7,722 (37,033) 70,604 125,607 (11,617) 1,293,137 9,214 (467,216) - (8,720) 1,927 (13,192) - (114,626) 27,661 81 413,999 1,389,661 - (1,630,000) (2,958,328) 5,600,000 (5,669,000) 1,748,296 2,693 (106,519) (1,982,843) (61,841) (413,643) 378 40,298 (5,430,509) 2,959 (1,200,152) 3,685,521 $2,485,369		$1,270,824 1,270,824 591,392 107,809 405 49,067 127,985 (24,468) (88,581) (31,294) (478,145) (129,637) (17,249) (297,874) (177) 38 233,868 (880,899) 5,370 1,018,251 14,640 2,286 249,721 (3,664) (103,930) (1,664) (150) (288,885) (58,355) (156,003) (1,625) 42,826 (143,748) 300 (24,322) 984,112 24,455 (120,594) (108,734) 779,239 49,868 122,629 (30,920) 2,378 196,980 (77,282) 280,684 - - 19,821 (440,654) 617,688 (776) - (54,361) (152,140) (25,302) (20,625) 347 88,581 576,916 (1,000,000) (235,000) 1,230,503 6,630,000 (6,068,000) - (16,094) (160,485) - - (346,250) 51 (13,619) 21,106 (26,625) 1,350,636 2,334,885 $3,685,521

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

English Translation of Consolidated Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For the Years ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

1. History and organization

GOLDSUN BUILDING MATERIALS CO., LTD. (“The Group”) was incorporated under the laws of the Republic of China (“R.O.C.”) in November 1954. The Group is engaged mainly in the production and sales pre-mixed concrete and building rental. In March 1978, the Group listed its shares of stock on the Taiwan Stock Exchange (“TWSE”). The Group’s registered office and the main business location is at 7F, No.8, Xinhu 1st Rd., Neihu Dist., Taipei City, Taiwan (R.O.C.)

2. Date and procedures of authorization of financial statements for issue

The consolidated financial statements of The Group and its subsidiaries (the “Group”) for the years ended 31 December 2020 and 2019 were authorized for issue by the Board of Director’s meeting on March 15, 2021.

3. Newly issued or revised standards and interpretations

(1) Changes in accounting policies resulting from applying for the first-time certain standards and amendments

The Group applied for the first time International Financial Reporting Standards, International Accounting Standards, and Interpretations issued, revised or amended which are recognized by Financial Supervisory Commission (“FSC”) and become effective for annual periods beginning on or after 1 January 2020. Apart from the nature and impact of the new standard and amendment is described below, the remaining new standards and amendments had no material impact on the Group.

Covid-19-Related Rent Concessions (Amendment to IFRS 16)

The Group elected to early apply Covid-19-Related Rent Concessions (Amendment to IFRS 16) which is recognized by FSC for annual periods beginning on or after 1 January 2020, and in accordance with the requirements of the transition. For the rent concession arising as a direct consequence of the covid-19 pandemic, the Group elected not to assess whether it is a lease modification but accounted it as a variable lease payment. Please refer to Note 6 for disclosure related to the lessee which required by the amendment.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

(2) Standards or interpretations issued, revised or amended, by International Accounting Standards Board (“IASB”) which are endorsed by FSC, but not yet adopted by the Group as at the end of the reporting period are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued byIASB
a	Interest Rate Benchmark Reform - Phase 2 (Amendments to IFRS 9,IAS 39,IFRS 7,IFRS 4 and IFRS 16)	1 January 2021

(a) Interest Rate Benchmark Reform - Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)

The final phase amendments mainly relate to the effects of the interest rate benchmark reform on the companies’ financial statements:

A. A company will not have to derecognise or adjust the carrying amount of financial instruments for changes to contractual cash flows as required by the reform, but will instead update the effective interest rate to reflect the change to the alternative benchmark rate;
B. A company will not have to discontinue its hedge accounting solely because it makes changes required by the reform, if the hedge meets other hedge accounting criteria; and
C. A company will be required to disclose information about new risks arising from the reform and how it manages the transition to alternative benchmark rates.

The abovementioned amendments that are applicable for annual periods beginning on or after 1 January 2021 have no material impact on the Group.

(3) Standards or interpretations issued, revised or amended, by IASB which are not endorsed by FSC, and not yet adopted by the Group as at the end of the reporting period are listed below.

Items	New, Revised or Amended Standards and Interpretations	Effective Date issued byIASB
a	IFRS 10 “Consolidated Financial Statements” and IAS 28 “Investments in Associates and Joint Ventures” - Sale or Contribution of Assets between an Investor and its Associate or JointVentures	To be determined by IASB
b	IFRS17 “InsuranceContracts”	1January2023
c	Classification of Liabilities as Current or Non-current - Amendments to IAS1	1 January 2023
d	Narrow-scope amendments of IFRS, including Amendments to IFRS 3, Amendments to IAS 16, Amendments to IAS 37 and the Annual Improvements	1 January 2022
e	Disclosure Initiative - AccountingPolicies - Amendments to IAS1	1January2023
f	Definition of AccountingEstimates - Amendments to IAS 8	1January2023

(a) IFRS 10“Consolidated Financial Statements” and IAS 28“Investments in Associates and Joint Ventures” - Sale or Contribution of Assets between an Investor and its Associate or Joint Ventures

The amendments address the inconsistency between the requirements in IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures , in dealing with the loss of control of a subsidiary that is contributed to an associate or a joint venture. IAS 28 restricts gains and losses arising from contributions of non-monetary assets to an associate or a joint venture to the extent of the interest attributable to the other equity holders in the associate or joint ventures. IFRS 10 requires full profit or loss recognition on the loss of control of the subsidiary. IAS 28 was amended so that the gain or loss resulting from the sale or contribution of assets that constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized in full.

IFRS 10 was also amended so that the gains or loss resulting from the sale or contribution of a subsidiary that does not constitute a business as defined in IFRS 3 between an investor and its associate or joint venture is recognized only to the extent of the unrelated investors’ interests in the associate or joint venture.

(b) IFRS 17 “Insurance Contracts”

IFRS 17 provides a comprehensive model for insurance contracts, covering all relevant accounting aspects (including recognition, measurement, presentation and disclosure requirements). The core of IFRS 17 is the General (building block) Model, under this model, on initial recognition, an entity shall measure a group of insurance contracts at the total of the fulfilment cash flows and the contractual service margin. The fulfilment cash flows comprise of the following:

A. estimates of future cash flows;
B. Discount rate: an adjustment to reflect the time value of money and the financial risks related to the future cash flows, to the extent that the financial risks are not included in the estimates of the future cash flows; and
C. a risk adjustment for non-financial risk.

The carrying amount of a group of insurance contracts at the end of each reporting period shall be the sum of the liability for remaining coverage and the liability for incurred claims. Other than the General Model, the standard also provides a specific adaptation for contracts with direct participation features (the Variable Fee Approach) and a simplified approach (Premium Allocation Approach) mainly for short-duration contracts.

IFRS 17 was issued in May 2017 and it was amended in June 2020. The amendments include deferral of the date of initial application of IFRS 17 by two years to annual beginning on or after 1 January 2023 (from the original effective date of 1 January 2021); provide additional transition reliefs; simplify some requirements to reduce the costs of applying IFRS 17 and revise some requirements to make the results easier to explain. IFRS 17 replaces an interim Standard - IFRS 4 Insurance Contracts - from annual reporting periods beginning on or after 1 January 2023.

These are the amendments to paragraphs 69-76 of IAS 1 Presentation of Financial statements and the amended paragraphs related to the classification of liabilities as current or non-current.

(d) Narrow-scope amendments of IFRS, including Amendments to IFRS 3, Amendments to IAS 16, Amendments to IAS 37 and the Annual Improvements
A. Updating a Reference to the Conceptual Framework (Amendments to IFRS 3) The amendments updated IFRS 3 by replacing a reference to an old version of the Conceptual Framework for Financial Reporting with a reference to the latest version, which was issued in March 2018. The amendments also added an exception to the recognition principle of IFRS 3 to avoid the issue of potential “day 2” gains or losses arising for liabilities and contingent liabilities. Besides, the amendments clarify existing guidance in IFRS 3 for contingent assets that would not be affected by replacing the reference to the Conceptual Framework.
B. Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16)

The amendments prohibit a company from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, a company will recognise such sales proceeds and related cost in profit or loss.

C. Onerous Contracts - Cost of Fulfilling a Contract (Amendments to IAS 37) The amendments clarify what costs a company should include as the cost of fulfilling a contract when assessing whether a contract is onerous.

D. Annual Improvements to IFRS Standards 2018 - 2020

Amendment to IFRS 1

The amendment simplifies the application of IFRS 1 by a subsidiary that becomes a first-time adopter after its parent in relation to the measurement of cumulative translation differences.

Amendment to IFRS 9 Financial Instruments

The amendment clarifies the fees a company includes when assessing whether the terms of a new or modified financial liability are substantially different from the terms of the original financial liability.

Amendment to Illustrative Examples Accompanying IFRS 16 Leases

The amendment to Illustrative Example 13 accompanying IFRS 16 modifies the treatment of lease incentives relating to lessee’s leasehold improvements.

Amendment to IAS 41

The amendment removes a requirement to exclude cash flows from taxation when measuring fair value thereby aligning the fair value measurement requirements in IAS 41 with those in other IFRS Standards.

(e) Disclosure Initiative - Accounting Policies - Amendments to IAS 1

The amendments improve accounting policy disclosures that to provide more useful information to investors and other primary users of the financial statements.

(f) Definition of Accounting Estimates - Amendments to IAS 8

The amendments introduce the definition of accounting estimates and included other amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors to help companies distinguish changes in accounting estimates from changes in accounting policies.

The abovementioned standards and interpretations issued by IASB have not yet endorsed by FSC at the date when the Group’s financial statements were authorized for issue, the local effective dates are to be determined by FSC. As the Group is still currently determining the potential impact of the standards and interpretations listed, it is not practicable to estimate their impact on the Group at this point in time.

4. Summary of Significant Accounting Policies

(1) Statement of compliance

The consolidated financial statements of the Group for the years ended December 31, 2020 and 2019 have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (“the Regulations”) and International Financial Reporting Standards, International Accounting Standards, and Interpretations developed by the International Financial Reporting Interpretations Committee or the former Standing Interpretations Committee as endorsed by the FSC.

(2) Basis of preparation

The consolidated financial statements have been prepared on a historical cost basis, except for financial instruments that have been measured at fair value. The consolidated financial statements are expressed in thousands of New Taiwan Dollars (“NT$”) unless otherwise stated.

(3) Basis of consolidation

Preparation principle of consolidated financial statements

Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if and only if the Group has:

A. power over the investee (i.e. existing rights that give it the current ability to direct the relevant activities of the investee)
B. exposure, or rights, to variable returns from its involvement with the investee, and
C. the ability to use its power over the investee to affect its returns

When the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

A. the contractual arrangement with the other vote holders of the investee
B. rights arising from other contractual arrangements
C. the Group’s voting rights and potential voting rights.

The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control.

Subsidiaries are fully consolidated from the acquisition date, being the date on which The Group obtains control, and continue to be consolidated until the date that such control ceases. The financial statements of the subsidiaries are prepared for the same reporting period as the parent company, using uniform accounting policies. All intra-group balances, income and expenses, unrealized gains and losses and dividends resulting from intra-group transactions are eliminated in full.

A change in the ownership interest of a subsidiary, without a change of control, is accounted for as an equity transaction.

Total comprehensive income of the subsidiaries is attributed to the owners of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

If the Group loses control of a subsidiary, it:

A. derecognizes the assets (including goodwill) and liabilities of the subsidiary;
B. derecognizes the carrying amount of any non-controlling interest;
C. recognizes the fair value of the consideration received;
D. recognizes the fair value of any investment retained;
E. recognizes any surplus or deficit in profit or loss; and
F. reclassifies the parent’s share of components previously recognized in other comprehensive income to profit or loss.

The consolidated entities are listed as follows:

Name of the investors	Name of subsidiaries	Nature of Business	Percentage of ownership (%)	Percentage of ownership (%)
			December 31, 2020	December 31, 2019
The Company The Company The Company The Company The Company The Company	KUNYUNG CONSTRUCTION & ENGINEERING CO., LTD REI SHIN CONSTRUCTION CO., LTD REIXIN ASSET MANAGEMENT CO., LTD. GOLDSUN INVESTMENT CO., LTD WELLPOOL CO., LTD. (Note 1) GOLDSUN NIHON CEMENT CO., LTD.	Construction of civil and architectural construction projects Real estate rental Real estate rental Investment Sales of calcium silicate board and other boards Cement import and sale	100% 100% 100% (Note1) - (Note2) 51% 59%	100% 100% - 100% 51% 59%

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

Name of the investors	Name of subsidiaries	Nature of Business	Percentage of ownership (%)	Percentage of ownership (%)
			December 31, 2020	December 31, 2019
The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company The Company WELLPOOL CO., LTD. EASE GREAT INVESTMENTS LTD. (Samoa) EASE GREAT INVESTMENTS LTD. (Samoa) GOLDSUN INC., Cayman GOLDSUN INC., Cayman GOLDSUN INC., Cayman GOLDSUN INC., Cayman GOLDSUN INC., Cayman GOLDSUN INC., Cayman GREAT SMART LTD.	EASE GREAT INVESTMENTS LTD. TAIPEI PORT TERMINAL COMPANY LIMITED HWA YA DEVELOPMENT CO., LTD. (Note 3) JIN SHUN MARITIME LTD. YUAN SHUN MARITIME LTD. JING SHUN MARITIME LTD. FENG SHUN MARITIME LTD. GIMPO MARINE CO., LTD. TAIWAN BUILDING MATERIALS (HONG KONG) LIMITED GOLDSUN INNOVATIVE BUILDING MATERIALS CO., LTD. GOYU BUILDING MATERIALS CO., LTD. Lake Vernicia Development Company (Note 4) GAPE-GOLDSUN CORPORATION GOLDSUN INTERNATIONAL DEVELOPMENT CORP. (GOLDSUN INC., Cayman) GREAT SMART LTD.(Cayman) GOLDSUN CONCRETE (SUZHOU) CO., LTD. TAICANG PORT GOLDSUN CONCRETE CO., LTD. KUNSHAN GOLDSUN CONCRETE CO., LTD. GOLDSUN CONCRETE (WUJIANG) CO., LTD. GOLDSUN CONCRETE (CHANGSHU) CO., LTD. GOLDSUN (SUZHOU) BUILDING MATERIALS CO., LTD. GOLDSUN COMENT (FUJIANG) CO., LTD. (Note5)	Investment holding International trade, warehousing and tally packaging Hotel operator Shipping Shipping Shipping Shipping Shipping Investment Sales of pre-mixed concrete and cement Sales of building materials Leisure frame management Sales of calcium silicate board and other boards Investment holding Investment holding Production and sales of pre-mixed concrete and cement Production and sales of pre-mixed concrete and cement Production and sales of pre-mixed concrete and cement Production and sales of pre-mixed concrete and cement Production and sales of pre-mixed concrete and cement Production and sales of pre-mixed concrete and cement Production and sales of cement	100% 100% 31% 100% 100% 100% 100% 100% 100% 100% 65% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% -	100% 100% 31% 100% 100% 100% 100% 100% 100% 100% 65% - 100% 100% 100% 100% 100% 100% 100% 100% 100% -

Note1: RUEI SHIN CONSTRUCION CO., LTD., has a resolution for division and transferred part of its independently operated business to a newly incorporated company, REIXIN ASSET MANAGEMENT INC., that the Company own 100% share. The transferred business value is estimated 1,000,000 thousand. The Company obtained 100,000 thousand new shares issued by REIXIN ASSET MANAGEMENT INC. as consideration. The division reference date was January 1, 2020.
Note 2: To simplify investment structure, strengthen efficiency the overall utilization of resource and enhance operational performance and competitiveness. Resolved by the Company’s Board of Directors on May 6, 2020, the Company mergered with GOLDSUN INVESTMENT CO., LTD. After the merger, the Company is surviving company and GOLDSUN INVESTMENT CO., LTD. is dissolved company. The reference date of the merger was May 31, 2020.
Note3: The Company determined that it has control over HWA YA DEVELOPMENT CO., LTD. due to the contractual agreement with other shareholders of HWA YA DEVELOPMENT CO., LTD.
Note4: LAKE VERNICIA DEVELOPMENT COMPANY was established on the third quarter of 2020 due to the Group is developing various business. The total investment amount was NT$1,000 thousand.
Note5: The Group disposed the subsidiary, GOLDSUN COMENT (FUJIAN) CO., LTD, in October 2019 and completed the capital transfer. Please ref to Note 6(27) for more detail.

Please refer to Note 8 for more details on stocks of subsidiary under pledge.

(4) Foreign currency transactions

The Group’s consolidated financial statements are presented in NT$, which is also The Group’s functional currency. Each entity in the Group determines its own functional currency and items included in the financial statements of each entity are measured using that functional currency.

Transactions in foreign currencies are initially recorded by the Group entities at their respective functional currency rates prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated at the functional currency closing rate of exchange ruling at the reporting date. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. Non-monetary items that are measured at historical cost in a foreign currency are translated using the exchange rates as of the dates of the initial transactions.

All exchange differences arising on the settlement of monetary items or on translating monetary items are taken to profit or loss in the period in which they arise except for the following:

A. Exchange differences arising from foreign currency borrowings for an acquisition of a qualifying asset to the extent that they are regarded as an adjustment to interest costs are included in the borrowing costs that are eligible for capitalization.
B. Foreign currency items within the scope of IFRS 39 Financial Instruments are accounted for based on the accounting policy for financial instruments.
C. Exchange differences arising on a monetary item that forms part of a reporting entity’s net investment in a foreign operation is recognized initially in other comprehensive income and reclassified from equity to profit or loss on disposal of the net investment.

When a gain or loss on a non-monetary item is recognized in other comprehensive income, any exchange component of that gain or loss is recognized in other comprehensive income. When a gain or loss on a non-monetary item is recognized in profit or loss, any exchange component of that gain or loss is recognized in profit or loss.

(5) Translation of financial statements in foreign currency

Each foreign operation of the Company determines its own functional currency and items included in the financial statements of each foreign operation are measured at that functional currency. While preparing the Company’s financial statements, the assets and liabilities of foreign operations are translated into NT$ at the closing rate of exchange prevailing at the reporting date and their income and expenses are translated at an average rate for the period. The exchange differences arising on the translation are recognized in other comprehensive income. On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that foreign operation, recognized in other comprehensive income and accumulated in the separate component of equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognized. The partial disposals are accounted for as disposals when the partial disposal involves the loss of control of a subsidiary that includes a foreign operation and when the retained interest after the partial disposal of an interest in a joint arrangement or a partial disposal of an interest in an associate that includes a foreign operation is a financial asset that includes a foreign operation.

On the partial disposal of a subsidiary that includes a foreign operation that does not result in a loss of control, the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is re-attributed to the non-controlling interests in that foreign operation. In partial disposal of an associate or joint arrangement that includes a foreign operation that does not result in a loss of significant influence or joint control, only the proportionate share of the cumulative amount of the exchange differences recognized in other comprehensive income is reclassified to profit or loss.

Any goodwill and any fair value adjustments to the carrying amounts of assets and liabilities arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and expressed in its functional currency.

(6) Current and non-current distinction

An asset is classified as current when:

A. The Group expects to realize the asset, or intends to sell or consume it, in its normal operating cycle
B. The Group holds the asset primarily for the purpose of trading
C. The Group expects to realize the asset within twelve months after the reporting period
D. The asset is cash or cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is classified as current when:

A. The Group expects to settle the liability in its normal operating cycle
B. The Group holds the liability primarily for the purpose of trading
C. The liability is due to be settled within twelve months after the reporting period
D. The Group does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities are classified as non-current.

(7) Cash and cash equivalents

Cash and cash equivalents comprises cash on hand, demand deposits and short-term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value (including fixed-term deposits that have maturities of 3 months from the date of acquisition).

(8) Financial instruments

Financial assets and financial liabilities are recognized when the Group becomes a party to the contractual provisions of the instrument.

Financial assets and financial liabilities within the scope of IFRS 9 Financial Instruments are recognized initially at fair value plus or minus, in the case of investments not at fair value through profit or loss, directly attributable transaction costs.

A. Financial instruments: Recognition and Measurement

The Group accounts for regular way purchase or sales of financial assets on the delivery date.

The Group classified financial assets as subsequently measured at amortized cost, fair value through other comprehensive income or fair value through profit or loss considering both factors below:

a. the Company’s business model for managing the financial assets and
b. the contractual cash flow characteristics of the financial asset.

Financial assets measured at amortized cost

A financial asset is measured at amortized cost if both of the following conditions are met and presented as note receivables, trade receivables financial assets measured at amortized cost and other receivables etc., on balance sheet as at the reporting date:

a. assets in order to collect contractual cash flows and
b. the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Such financial assets are subsequently measured at amortized cost (the amount at which the financial asset is measured at initial recognition minus the principal repayments, plus or minus the cumulative amortization using the effective interest method of any difference between the initial amount and the maturity amount and adjusted for any loss allowance) and is not part of a hedging relationship. A gain or loss is recognized in profit or loss when the financial asset is derecognized, through the amortization process or in order to recognize the impairment gains or losses.

Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:

a. Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.
b. financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Financial asset measured at fair value through other comprehensive income

A financial asset is measured at fair value through other comprehensive income if both of the following conditions are met:

a. the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and
b. the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Recognition of gain or loss on a financial asset measured at fair value through other comprehensive income are described as below:

a. A gain or loss on a financial asset measured at fair value through other comprehensive income recognized in other comprehensive income, except for impairment gains or losses and foreign exchange gains and losses, until the financial asset is derecognized or reclassified.
b. When the financial asset is derecognized the cumulative gain or loss previously recognized in other comprehensive income is reclassified from equity to profit or loss or retained earnings as a reclassification adjustment.
c. Interest revenue is calculated by using the effective interest method. This is calculated by applying the effective interest rate to the gross carrying amount of a financial asset except for:
i. Purchased or originated credit-impaired financial assets. For those financial assets, the Company applies the credit-adjusted effective interest rate to the amortized cost of the financial asset from initial recognition.
ii. Financial assets that are not purchased or originated credit-impaired financial assets but subsequently have become credit-impaired financial assets. For those financial assets, the Company applies the effective interest rate to the amortized cost of the financial asset in subsequent reporting periods.

Besides, for certain equity investments within the scope of IFRS 9 that is neither held for trading nor contingent consideration recognized by an acquirer in a business combination to which IFRS 3 applies, the Company made an irrevocable election to present the changes of the fair value in other comprehensive income at initial recognition. Amounts presented in other comprehensive income shall not be subsequently transferred to profit or loss (when disposal of such equity instrument, its cumulated amount included in other components of equity is transferred directly to the retained earnings) and these investments should be presented as financial assets measured at fair value through other comprehensive income on the balance sheet. Dividends on such investment are recognized in profit or loss unless the dividends clearly represents a recovery of part of the cost of investment.

Financial asset measured at fair value through profit or loss

Financial assets were classified as measured at amortized cost or measured at fair value through other comprehensive income based on aforementioned criteria. All other financial assets were measured at fair value through profit or loss and presented on the balance sheet as financial assets measured at fair value through profit or loss.

Such financial assets are measured at fair value, the gains or losses resulting from remeasurement is recognized in profit or loss which includes any dividend or interest received on such financial assets.

B. Impairment of financial assets

The Group recognizes a loss allowance for expected credit losses on debt instrument investments measured at fair value through other comprehensive income and financial asset measured at amortized cost. The loss allowance on debt instrument investments measured at fair value through other comprehensive income is recognized in other comprehensive income and not reduce the carrying amount in the statement of financial position.

The Group measures expected credit losses of a financial instrument in a way that reflects:

a. an unbiased and probability-weighted amount that is determined by evaluating a range of possible outcomes;
b. the time value of money; and
c. reasonable and supportable information that is available without undue cost or effort at the reporting date about past events, current conditions and forecasts of future economic conditions.

The loss allowance is measures as follow:

a. At an amount equal to 12-month expected credit losses: the credit risk on a financial asset has not increased significantly since initial recognition or the financial asset is determined to have low credit risk at the reporting date. In addition, the Company measures the loss allowance at an amount equal to lifetime expected credit losses in the previous reporting period but determines at the current reporting date that the credit risk on a financial asset has increased significantly since initial recognition is no longer met.
b. At an amount equal to the lifetime expected credit losses: the credit risk on a financial asset has increased significantly since initial recognition or financial asset that is purchased or originated credit-impaired financial asset.
c. For trade receivables or contract assets arising from transactions within the scope of IFRS 15, the Company measures the loss allowance at an amount equal to lifetime expected credit losses.

At each reporting date, the Group needs to assess whether the credit risk on a financial asset has increased significantly since initial recognition by comparing the risk of a default occurring at the reporting date and the risk of default occurring at initial recognition. Please refer to Note 12 for further details on credit risk.

C. Derecognition of financial assets

A financial asset is derecognized when:

a. The rights to receive cash flows from the asset have expired
b. The Company has transferred the asset and substantially all the risks and rewards of the asset have been transferred
c. The Company has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the carryingamount and the consideration received or to be received including any cumulative gain or loss that had been recognized in other comprehensive income is recognized in profit or loss (for debt instruments) or directly in retained earnings (for equity instruments).

If the transferred asset is part of a larger financial asset and the part transferred qualifies for derecognition in its entirety, the Company allocates the previous carrying amount of the larger financial asset between the part that continues to be recognized and the part that is derecognized, based on the relative fair values of those parts on the date of the transfer. Any cumulative gain or loss that had been recognized in other comprehensive income is allocated between the part that continues to be recognized and the part that is derecognized, based on the relative fair values of those parts. The difference between the carrying amount allocated to the part derecognized and the sum of the consideration received for the part derecognized and any cumulative gain or loss allocated that had been recognized in other comprehensive income, is recognized in profit or loss or directly in retained earnings.

D. Financial liabilities and equity

Classification between liabilities or equity

The Group classifies the instrument issued as a financial liability or an equity instrument in accordance with the substance of the contractual arrangement and the definitions of a financial liability, and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. The transaction costs of an equity transaction are accounted for as a deduction from equity (net of any related income tax benefit) to the extent they are incremental costs directly attributable to the equity transaction that otherwise would have been avoided.

Compound instruments

The Company evaluates the terms of the convertible bonds issued to determine whether it contains both a liability and an equity component. Furthermore, the Company assesses if the economic characteristics and risks of the put and call options contained in the convertible bonds are closely related to the economic characteristics and risk of the host contract before separating the equity element.

For the liability component excluding the derivatives, its fair value is determined based on the rate of interest applied at that time by the market to instruments of comparable credit status. The liability component is classified as a financial liability measured at amortized cost before the instrument is converted or settled.

For the embedded derivative that is not closely related to the host contract (for example, if the exercise price of the embedded call or put option is not approximately equal on each exercise date to the amortized cost of the host debt instrument), it is classified as a liability component and subsequently measured at fair value through profit or loss unless it qualifies for an equity component. The equity component is assigned the residual amount after deducting from the fair value of the instrument as a whole the amount separately determined for the liability component. It carrying amount is not remeasured in the subsequent accounting periods. If the convertible bond issued does not have an equity component, it is accounted for as a hybrid instrument in accordance with the requirements under IFRS 9 Financial Instruments.

Transaction costs are apportioned between the liability and equity components of the convertible bond based on the allocation of proceeds to the liability and equity components when the instruments are initially recognized.

On conversion of a convertible bond before maturity, the carrying amount of the liability component being the amortized cost at the date of conversion is transferred to equity.

Financial liabilities

Financial liabilities within the scope of IFRS 9 Financial Instruments are classified as financial liabilities at fair value through profit or loss or financial liabilities measured at amortized cost upon initial recognition.

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated as at fair value through profit or loss. A financial liability is classified as held for trading if:

a. it is acquired or incurred principally for the purpose of selling or repurchasing it in the near term;
b. on initial recognition it is part of a portfolio of identified financial instruments that are managed together and for which there is evidence of a recent actual pattern of shortterm profit-taking; or
c. it is a derivative (except for a derivative that is a financial guarantee contract or a designated and effective hedging instrument).

If a contract contains one or more embedded derivatives, the entire hybrid (combined) contract may be designated as a financial liability at fair value through profit or loss; or a financial liability may be designated as at fair value through profit or loss when doing so results in more relevant information, because either:

a. it eliminates or significantly reduces a measurement or recognition inconsistency; or
b. a group of financial assets, financial liabilities or both is managed and its performance is evaluated on a fair value basis, in accordance with a documented risk management or investment strategy, and information about the Company is provided internally on that basis to the key management personnel.

Gains or losses on the subsequent measurement of liabilities at fair value through profit or loss including interest paid are recognized in profit or loss.

Financial liabilities at amortized cost

Financial liabilities measured at amortized cost include interest bearing loans and borrowings that are subsequently measured using the effective interest rate method after initial recognition. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as through the effective interest rate method amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or transaction costs.

Derecognition of financial liabilities

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified (whether or not attributable to the financial difficulty of the debtor), such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability, and the difference in the respective carrying amounts and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

E. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount reported in the balance sheet if, and only if, there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis, or to realize the assets and settle the liabilities simultaneously.

(9) Fair value measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

A. In the principal market for the asset or liability, or
B. In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible to by the Group.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

(10) Inventories

Inventories are valued at lower of cost and net realizable value item by item.

Costs incurred in bringing each inventory to its present location and condition are accounted for as follows:

Raw materials - Purchase cost based on a weighted average cost basis.

Finished goods and work in progress - Cost of direct materials and labor and a proportion of manufacturing overheads based on normal operating capacity but excluding borrowing costs.

Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

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

Non-current assets and disposal groups are classified as held for sale if their carrying amounts will be recovered through a sale transaction that is highly probable within one year from the date of classification and the asset or disposal group is available for immediate sale in its present condition. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell.

In the consolidated statement of comprehensive income of the reporting period, and of the comparable period of the previous year, income and expenses from discontinued operations are reported separately from income and expenses from continuing operations, down to the level of profit after taxes, even when the Group retains a non-controlling interest in the subsidiary after the sale. The resulting profit or loss (after taxes) is reported separately in the statement of comprehensive income.

Property, plant and equipment and intangible assets once classified as held for sale are not depreciated or amortized.

(12) Investments accounted for under the equity method

The Group’s investment in its associate is accounted for under the equity method other than those that meet the criteria to be classified as held for sale. An associate is an entity over which the Group has significant influence. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture.

Under the equity method, the investment in the associate or an investment in a joint venture is carried in the balance sheet at cost and adjusted thereafter for the post-acquisition change in the Group’s share of net assets of the associate or joint venture. After the interest in the associate or joint venture is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate or joint venture. Unrealized gains and losses resulting from transactions between the Group and the associate or joint venture are eliminated to the extent of the Group’s related interest in the associate or joint venture.

When changes in the net assets of an associate or a joint venture occur and not those that are recognized in profit or loss or other comprehensive income and do not affects the Group’s percentage of ownership interests in the associate or joint venture, the Group recognizes such changes in equity based on its percentage of ownership interests. The resulting capital surplus recognized will be reclassified to profit or loss at the time of disposing the associate or joint venture on a prorate basis.

When the associate or joint venture issues new stock, and the Group’s interest in an associate or a joint venture is reduced or increased as the Group fails to acquire shares newly issued in the associate or joint venture proportionately to its original ownership interest, the increase or decrease in the interest in the associate or joint venture is recognized in Additional Paid in Capital and Investment accounted for using the equity method. When the interest in the associate or joint venture is reduced, the cumulative amounts previously recognized in other comprehensive income are reclassified to profit or loss or other appropriate items. The aforementioned capital surplus recognized is reclassified to profit or loss on a pro rata basis when the Group disposes the associate or joint venture.

The financial statements of the associate or joint venture are prepared for the same reporting period as the Group. Where necessary, adjustments are made to bring the accounting policies in line with those of the Group.

The Group determines at each reporting date whether there is any objective evidence that the investment in the associate or an investment in a joint venture is impaired in accordance with IAS 28 Investments in Associates and Joint Ventures . If this is the case the Group calculates the amount of impairment as the difference between the recoverable amount of the associate or joint venture and its carrying value and recognizes the amount in the ‘share of profit or loss of an associate’ in the statement of comprehensive income in accordance with IAS 36 Impairment of Assets . In determining the value in use of the investment, the Group estimates:

A. Its share of the present value of the estimated future cash flows expected to be generated by the associate or joint venture, including the cash flows from the operations of the associate and the proceeds on the ultimate disposal of the investment; or
B. The present value of the estimated future cash flows expected to arise from dividends to be received from the investment and from its ultimate disposal.

Because goodwill that forms part of the carrying amount of an investment in an associate or an investment in a joint venture is not separately recognized, it is not tested for impairment separately by applying the requirements for impairment testing goodwill in IAS 36 Impairment of Assets .

Upon loss of significant influence over the associate or joint venture, the Group measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate or joint venture upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss. Furthermore, if an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the entity continues to apply the equity method and does not remeasure the retained interest.

(13) Property, plant and equipment

Property, plant and equipment is stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. Such cost includes the cost of dismantling and removing the item and restoring the site on which it is located and borrowing costs for construction in progress if the recognition criteria are met. Each part of an item of property, plant and equipment with a cost that is significant in relation to the total cost of the item is depreciated separately. When significant parts of property, plant and equipment are required to be replaced in intervals, the Group recognized such parts as individual assets with specific useful lives and depreciation, respectively. The carrying amount of those parts that are replaced is derecognized in accordance with the derecognition provisions of IAS 16 Property, plant and equipment . When a major inspection is performed, its cost is recognized in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognized in profit or loss as incurred.

Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

Buildings	5~55 years
Machinery and equipment	2~10 years
Transportation equipment	2~10 years
Office equipment	5 years
Right-of-use assets	2~50 years
Lease improvement	2~25 years
Other equipment	3~5 years

An item of property, plant and equipment and any significant part initially recognized is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is recognized in profit or loss.

The assets’ residual values, useful lives and methods of depreciation are reviewed at each financial year end and adjusted prospectively, if appropriate.

(14) Investment property

The Group’s owned investment properties are measured initially at cost, including transaction costs. The carrying amount includes the cost of replacing part of an existing investment property at the time that cost is incurred if the recognition criteria are met and excludes the costs of day-to-day servicing of an investment property. Subsequent to initial recognition, other than those that meet the criteria to be classified as held for sale (or are included in a disposal Group that is classified as held for sale) in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations, investment properties are measured using the cost model in accordance with the requirements of IAS 16 Property, plant and equipment for that model. If investment properties are held by a lessee as right-of-use assets and is not held for sale in accordance with IFRS 5, investment properties are measured in accordance with the requirements of IFRS 16.

Depreciation is calculated on a straight-line basis over the estimated economic lives of the following assets:

Buildings 30~55 years

Investment properties are derecognized when either they have been disposed of or when the investment property is permanently withdrawn from use and no future economic benefit is expected from its disposal. The difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss in the period of derecognition.

Properties are transferred to or from investment properties due to actual use.

Properties are transferred to or from investment properties when the properties meet, or cease to meet, the definition of investment property and there is evidence of the change in use.

(15) Leases

For contracts entered, the Group assesses whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset for a period of time, the Group assesses whether, throughout the period of use, has both of the following:

A. the right to obtain substantially all of the economic benefits from use of the identified asset; and
B. the right to direct the use of the identified asset.

For a contract that is, or contains, a lease, the Group accounts for each lease component within the contract as a lease separately from non-lease components of the contract. For a contract that contains a lease component and one or more additional lease or non-lease components, the Group allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. The relative stand-alone price of lease and non-lease components shall be determined on the basis of the price the lessor, or a similar supplier, would charge the Group for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the Group estimates the stand-alone price, maximizing the use of observable information.

Group as a lessee

Except for leases that meet and elect short-term leases or leases of low-value assets, the Group recognizes right-of-use asset and lease liability for all leases which the Group is the lessee of those lease contracts.

At the commencement date, the Group measures the lease liability at the present value of the lease payments that are not paid at that date. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily determined. If that rate cannot be readily determined, the Group uses its incremental borrowing rate. At the commencement date, the lease payments included in the measurement of the lease liability comprise the following payments for the right to use the underlying asset during the lease term that are not paid at the commencement date:

A. fixed payments (including in-substance fixed payments), less any lease incentives receivable;
B. variable lease payments that depend on an index or rate, initially measured using the index or rate as at the commencement date;
C. amounts expected to be payable by the lessee under residual value guarantees;
D. the exercise price of a purchase option if the Group is reasonably certain to exercise that option; and.
E. payments of penalties for terminating the lease, if the lease term reflects the lessee exercising an option to terminate the lease.

After the commencement date, the Group measures the lease liability on an amortised cost basis, which increases the carrying amount to reflect interest on the lease liability by using an effective interest method; and reduces the carrying amount to reflect the lease payments made.

At the commencement date, the Group measures the right-of-use asset at cost. Cost of rightof-use asset contains:

A. the amount of the initial measurement of the lease liability;
B. any lease payments made at or before the commencement date, less any lease incentives received
C. any initial direct costs incurred by the lessee; and
D. an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the site on which it is located or restoring the underlying asset to the condition required by the terms and conditions of the lease.

For subsequent measurement of the right-of-use asset, the Group measures the right-of-use asset at cost less any accumulated depreciation and any accumulated impairment losses. That is, the Group measures the right-of-use applying a cost model.

If the lease transfers ownership of the underlying asset to the Group by the end of the lease term or if the cost of the right-of-use asset reflects that the Group will exercise a purchase option, the Group depreciates the right-of-use asset from the commencement date to the end of the useful life of the underlying asset. Otherwise, the Group depreciates the right-of-use asset from the commencement date to the earlier of the end of the useful life of the right-ofuse asset or the end of the lease term.

The Group applies IAS 36 “Impairment of Assets” to determine whether the right-of-use asset is impaired and to account for any impairment loss identified.

Except for those leases that the Group accounted for as short-term leases or leases of lowvalue assets, the Group presents right-of-use assets and lease liabilities in the balance sheet and separately presents lease-related interest expense and depreciation charge in the statements comprehensive income.

For short-term leases or leases of low-value assets, the Group elects to recognize the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis.

Group as a lessor

At inception of a contract, the Group classifies each of its leases as either an operating lease or a finance lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset. At the commencement date, the Group recognizes assets held under a finance lease in its balance sheet and present them as a receivable at an amount equal to the net investment in the lease.

For a contract that contains lease components and non-lease components, the Group allocates the consideration in the contract applying IFRS 15.

The Group recognizes lease payments from operating leases as rental income on either a straight-line basis or another systematic basis. Variable lease payments for operating leases that do not depend on an index or a rate are recognized as rental income when incurred.

(16) Intangible assets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses, if any. Internally generated intangible assets, excluding capitalized development costs, are not capitalized and expenditure is reflected in profit or loss for the year in which the expenditure is incurred.

The useful lives of intangible assets are assessed as either finite or indefinite.

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life is reviewed at least at the end of each financial year. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset is accounted for by changing the amortization period or method, as appropriate, and are treated as changes in accounting estimates.

Intangible assets with indefinite useful lives are not amortized, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognized in profit or loss when the asset is derecognized.

Operating Concession

The Group was granted authority to construct and operate the Bulk & General Cargo Terminal No.2 of Taipei Port and relevant ancillary facilities under the Agreement of “Bulk & General Cargo Terminal No.2 of Taipei Port building and operating” and therefore the Group’s operation is under the scope of IFRIC 12“Service Concession Arrangements”. The construction cost occurred during the period of construction recognized as operating concession cost. The operating concession cost started to be amortized based on a straight-line basis during the operation period, since the completion of Bulk & General Cargo Terminal No.2 of Taipei Port and start to operate concession business. The concessions and accumulated amortization balance will be written off when the contract is terminated or the concession period expires.

A summary of the policies applied to the Group’s intangible assets is as follows:

Useful lives Amortization method used Internally generated or acquired	Miningright	Concession	Computer software
	Finite Amortized on the unit of production basis over the estimated undeveloped reserves. Acquired	Finite Amortized on a straight- line basis over the specified period of the operating and maintaining. Acquired	Finite Amortized on a straight- line basis over the estimated useful life Acquired

(17) Impairment of non-financial assets

The Group assesses at the end of each reporting period whether there is any indication that an asset in the scope of IAS 36 Impairment of Assets may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cashgenerating unit’s (“CGU”) fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or Group of assets. Where the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

For assets excluding goodwill, an assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the Group estimates the asset’s or cashgenerating unit’s recoverable amount. A previously recognized impairment loss is reversed only if there has been an increase in the estimated service potential of an asset which in turn increases the recoverable amount. However, the reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognized for the asset in prior years.

An impairment loss of continuing operations or a reversal of such impairment loss is recognized in profit or loss.

(18) Provisions

Provisions are recognized when the Group has a present obligation (legal or constructive) as a result of a past event, it is probably that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Where the Group expects some or all of a provision to be reimbursed, the reimbursement is recognized as a separate asset but only when the reimbursement is virtually certain. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects the risks specific to the liability. Where discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Provision for decommissioning, restoration and rehabilitation costs

The provision for decommissioning, restoration and rehabilitation costs arose on construction of a property, plant and equipment. Decommissioning costs are provided at the present value of expected costs to settle the obligation using estimated cash flows and are recognized as part of the cost of that particular asset. The cash flows are discounted at a current pre-tax rate that reflects the risks specific to the decommissioning liability. The unwinding of the discount is expensed as incurred and recognized as a finance cost. The estimated future costs of decommissioning are reviewed annually and adjusted as appropriate. Changes in the estimated future costs or in the discount rate applied are added to or deducted from the cost of the asset.

Maintenance warranties

A provision is recognized for expected warranty claims on construction, based on past experience, management’s judgement and other known factors.

(19) Treasury shares

Own equity instruments which are reacquired (treasury shares) are recognized at cost and deducted from equity. Any difference between the carrying amount and the consideration is recognized in equity.

(20) Revenue recognition

The Group’s revenue arising from contracts with customers are primarily related to sale of goods and rendering of services. The accounting policies are explained as follow:

Sale of goods

The Group sells merchandise. Sales are recognized when control of the goods is transferred to the customer and the goods are delivered to the customers. The main product of the Group is pre-mixed concrete and cement. Revenue are recognized based on the consideration stated in the contract.

The Group provides its customer with a warranty with the purchase of the products. The warranty provides assurance that the product will operate as expected by the customers. And the warranty is accounted in accordance with IAS 37.

The credit period of the Group’s sale of goods is from 30 to 120 days. For most of the contracts, when the Group transfers the goods to customers and has a right to an amount of consideration that is unconditional, these contracts are recognized as trade receivables. The Group usually collects the payments shortly after transfer of goods to customers; therefore, there is no significant financing component to the contract. The other part of the accounts receivable is the contract between the Group and the customer to deliver the promised goods or services to the customer, but the payment period is more than one year according to the contract. Therefore, the Group adjusts the transaction price for the time value of money. However, some of the contracts are subject to partial consideration for the customers before the transfer of the goods. The Group is obliged to undertake the subsequent transfer of the goods and is therefore recognized as a contract liability.

(21) Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized as part of the cost of the respective assets. All other borrowing costs are expensed in the period they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

(22) Government grants

Government grants are recognized where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. Where the grant relates to an asset, it is recognized as deferred income and released to income in equal amounts over the expected useful life of the related asset. When the grant relates to an expense item, it is recognized as income over the period necessary to match the grant on a systematic basis to the costs that it is intended to compensate.

Where the Group receives non-monetary grants, the asset and the grant are recorded gross at nominal amounts and released to the statement of comprehensive income over the expected useful life and pattern of consumption of the benefit of the underlying asset by equal annual installments. Where loans or similar assistance are provided by governments or related institutions with an interest rate below the current applicable market rate, the effect of this favorable interest is regarded as additional government grant.

(23) Post-employment benefits

All regular employees of the Group and its domestic subsidiaries are entitled to a pension plan that is managed by an independently administered pension fund committee. Fund assets are deposited under the committee’s name in the specific bank account and hence, not associated with the Group and its domestic subsidiaries. Therefore, fund assets are not included in the Group’s consolidated financial statements. Pension benefits for employees of the overseas subsidiaries and the branches are provided in accordance with the respective local regulations.

For the defined contribution plan, the Group and its domestic subsidiaries will make a monthly contribution of no less than 6% of the monthly wages of the employees subject to the plan. The Group recognizes expenses for the defined contribution plan in the period in which the contribution becomes due. Overseas subsidiaries and branches make contribution to the plan based on the requirements of local regulations.

Post-employment benefit plan that is classified as a defined benefit plan uses the Projected Unit Credit Method to measure its obligations and costs based on actuarial assumptions. Remeasurements, comprising of the effect of the actuarial gains and losses, the effect of the asset ceiling (excluding net interest) and the return on plan assets, excluding net interest, are recognized as other comprehensive income with a corresponding debit or credit to retained earnings in the period in which they occur. Past service costs are recognized in profit or loss on the earlier of:

A. the date of the plan amendment or curtailment, and

B. the date that the Group recognizes restructuring-related costs

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset, both as determined at the start of the annual reporting period, taking account of any changes in the net defined benefit liability (asset) during the period as a result of contribution and benefit payment.

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 the prior financial year, adjusted and disclosed for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events.

(24) Share-based payment transactions

The cost of equity-settled transactions between the Group and employees is recognized based on the fair value of the equity instruments granted. The fair value of the equity instruments is determined by using an appropriate pricing model.

The cost of equity-settled transactions is recognized, together with a corresponding increase in other capital reserves in equity, over the period in which the performance and/or service conditions are fulfilled. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. The income statement expense or credit for a period represents the movement in cumulative expense recognized as of the beginning and end of that period.

No expense is recognized for awards that do not ultimately vest, except for equity-settled transactions where vesting is conditional upon a market or non-vesting condition, which are treated as vesting irrespective of whether or not the market or non-vesting condition is satisfied, provided that all other performance and/or service conditions are satisfied.

Where the terms of an equity-settled transaction award are modified, the minimum expense recognized is the expense as if the terms had not been modified, if the original terms of the award are met. An additional expense is recognized for any modification that increases the total fair value of the share-based payment transaction, or is otherwise beneficial to the employee as measured at the date of modification.

Where an equity-settled award is cancelled, it is treated as if it vested on the date of cancellation, and any expense not yet recognized for the award is recognized immediately. This includes any award where non-vesting conditions within the control of either the entity or the employee are not met. However, if a new award is substituted for the cancelled award, and designated as a replacement award on the date that it is granted, the cancelled and new awards are treated as if they were a modification of the original award, as described in the previous paragraph.

The dilutive effect of outstanding options is reflected as additional share dilution in the computation of diluted earnings per share.

The cost of restricted stocks issued is recognized as salary expense based on the fair value of the equity instruments on the grant date, together with a corresponding increase in other capital reserves in equity, over the vesting period. The Group recognized unearned employee salary which is a transitional contra equity account; the balance in the account will be recognized as salary expense over the passage of vesting period.

(25) Income taxes

Income tax expense (income) is the aggregate amount included in the determination of profit or loss for the period in respect of current tax and deferred tax.

Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities, using the tax rates and tax laws that have been enacted or substantively enacted by the end of the reporting period. Current income tax relating to items recognized in other comprehensive income or directly in equity is recognized in other comprehensive income or equity and not in profit or loss.

The 5% surtax on undistributed retained earnings is recognized as income tax expense in the subsequent year when the distribution proposal is approved by the Shareholders’ meeting.

Deferred tax

Deferred tax is provided on temporary differences at the reporting date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes.

Deferred tax liabilities are recognized for all taxable temporary differences, except:

A. Where the deferred tax liability arises from the initial recognition of goodwill or of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
B. In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, where the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognized for all deductible temporary differences, carry forward of unused tax credits and unused tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized, except:

A. Where the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.
B. In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, deferred tax assets are recognized only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilized.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted at the reporting date. The measurement of deferred tax assets and deferred tax liabilities reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction either in other comprehensive income or directly in equity. Deferred tax assets are reassessed at each reporting date and are recognized accordingly.

Deferred tax assets and deferred tax liabilities are offset, if a legally enforceable right exists to set off current income tax assets against current income tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

(26) Business combinations and goodwill

Business combinations are accounted for using the acquisition method. The consideration transferred, the identifiable assets acquired, and liabilities assumed are measured at acquisition date fair value. For each business combination, the acquirer measures any noncontrolling interest in the acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets. Acquisition-related costs are accounted for as expenses in the periods in which the costs are incurred and are classified under administrative expenses.

When the Group acquires a business, it assesses the assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as of the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.

If the business combination is achieved in stages, the acquisition date fair value of the acquirer’s previously held equity interest in the acquiree is remeasured to fair value at the acquisition date through profit or loss.

Any contingent consideration to be transferred by the acquirer will be recognized at the acquisition-date fair value. Subsequent changes to the fair value of the contingent consideration which is deemed to be an asset or liability will be recognized in accordance with IAS 39 Financial Instruments: Recognition and Measurement either in profit or loss or as a change to other comprehensive income. However, if the contingent consideration is classified as equity, it should not be remeasured until it is finally settled within equity.

Goodwill is initially measured as the amount of the excess of the aggregate of the consideration transferred and the non-controlling interest over the net fair value of the identifiable assets acquired and the liabilities assumed. If this aggregate is lower than the fair value of the net assets acquired, the difference is recognized in profit or loss.

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. Goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree are assigned to those units. Each unit or group of units to which the goodwill is so allocated represents the lowest level within the Group at which the goodwill is monitored for internal management purpose and is not larger than an operating segment before aggregation.

Where goodwill forms part of a cash-generating unit and part of the operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the carrying amount of the operation. Goodwill disposed of in this circumstance is measured based on the relative recoverable amounts of the operation disposed of and the portion of the cash-generating unit retained.

5. Significant Accounting Judgments, Estimates and Assumptions

The preparation of the Group’s consolidated financial statements require management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities, at the end of the reporting period. However, uncertainty about these assumption and estimate could result in outcomes that require a material adjustment to the carrying amount of the asset or liability affected in future periods.

(1) Judgment

In the process of applying the Group’s accounting policies, management made the following judgments, which have the most significant effect on the amounts recognized in the consolidated financial statements:

A. Investment properties

Certain properties of the Group comprise a portion that is held to earn rentals or for capital appreciation and another portion that is owner-occupied. If these portions could be sold separately, the Group accounts for the portions separately as investment properties and property, plant and equipment. If the portions could not be sold separately, the property is classified as investment property in its entirety only if the portion that is owner-occupied is under 5% of the total property.

B. Operating lease commitment-Group as the lessor

The Group has entered into commercial property leases on its investment property portfolio. The Group has determined, based on an evaluation of the terms and conditions of the arrangements, that it retains all the significant risks and rewards of ownership of these properties, and accounts for the contracts as operating leases.

C. De facto control without a majority of the voting rights in subsidiaries

The Group does not have majority of the voting rights in certain subsidiaries. However, after taking into consideration factors such as absolute size of the Group’s holding, relative size of the other shareholdings, how widely spread are the remaining shareholders, contractual arrangements between shareholders, potential voting rights, etc., the Group reached the conclusion that it has de facto control over these subsidiaries. Please refer to Note 4(3) for further details.

(2) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

A. Fair value of financial instruments

Where the fair value of financial assets and financial liabilities recorded in the balance sheet cannot be derived from active markets, they are determined using valuation techniques including the income approach (for example the discounted cash flow model) or market approach. Changes in assumptions about these factors could affect the reported fair value of the financial instruments. Please refer to Note 12 for more details.

B. Impairment of non-financial assets

An impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs to sell and its value in use. The fair value less costs to sell calculation is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date less incremental costs that would be directly attributable to the disposal of the asset or cash generating unit. The value in use calculation is based on a discounted cash flow model. The cash flows projections are derived from the budget for the next five years and do not include restructuring activities that the Group is not yet committed to or significant future investments that will enhance the asset’s performance of the cash generating unit being tested. The recoverable amount is most sensitive to the discount rate used for the discounted cash flow model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes.

C. Pension benefits

The cost of post-employment benefit and the present value of the pension obligation under defined benefit pension plans are determined using actuarial valuations. An actuarial valuation involves making various assumptions. These include the determination of the discount rate and future salary increases. Please refer to Note 6 for more details.

D. Accounts receivables-estimation of impairment loss

The Group estimates the impairment loss of accounts receivables at an amount equal to lifetime expected credit losses. The credit loss is the present value of the difference between the contractual cash flows that are due under the contract (carrying amount) and the cash flows that expects to receive (evaluate forward looking information). However, as the impact from the discounting of short-term receivables is not material, the credit loss is measured by the undiscounted cash flows. Where the actual future cash flows are lower than expected, a material impairment loss may arise. Please refer to Note 6 for more details.

E. Income tax

Uncertainties exist with respect to the interpretation of complex tax regulations and the amount and timing of future taxable income. Given the wide range of international business relationships and the long-term nature and complexity of existing contractual agreements, differences arising between the actual results and the assumptions made, or future changes to such assumptions, could necessitate future adjustments to tax income and expense already recorded. The Group establishes provisions, based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective counties in which it operates. The amount of such provisions is based on various factors, such as experience of previous tax audits and differing interpretations of tax regulations by the taxable entity and the responsible tax authority. Such differences of interpretation may arise on a wide variety of issues depending on the conditions prevailing in the respective Group Group's domicile.

Deferred tax assets are recognized for all carryforward of unused tax losses and unused tax credits and deductible temporary differences to the extent that it is probable that taxable profit will be available or there are sufficient taxable temporary differences against which the unused tax losses, unused tax credits or deductible temporary differences can be utilized. The amount of deferred tax assets determined to be recognized is based upon the likely timing and the level of future taxable profits and taxable temporary differences together with future tax planning strategies. Please refer to Note 6 for disclosure on unrecognized deferred tax assets of the Group as of December 31, 2020.

6. Contents of Significant Accounts

(1) Cash and cash equivalents

Cash on hand and petty cash Checking accounts and demand deposits Time deposits Cash equivalents (Note) Total	As of December 31,	As of December 31,
	2020	2019
	$5,725 2,018,122 290,317 171,205	$5,717 2,889,952 653,561 136,291
	$2,485,369	$3,685,521

Note: The Cash equivalents is Bank’s short-term bill that have maturity within 3 months.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

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

Mandatorily measured at fair value through profit or loss: Fund	As of December 31,	As of December 31,
	2020	2019
	$994	$949

Financial assets at fair value through profit or loss were not pledged.

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

Equity instrument investments measured at fair value through other comprehensive income: Listed companies’ stocks Unlisted companies’ stocks Total Current Non-current Total	As of December 31,	As of December 31,
	2020	2019
	$1,418,938 542,717	$1,516,095 715,008
	$1,961,655	$2,231,103
	$762,048 1,199,607	$723,269 1,507,834
	$1,961,655	$2,231,103

Please refer to Note 8 for more details on financial assets at fair value through other comprehensive income under pledge.

In consideration of the Group’s investment strategy, the Group sold, and derecognized partial equity instrument investments measured at fair value through other comprehensive income. Details on derecognition of such investments for the years ended December 31, 2020 and 2019 are as follow:

are as follow:
The fair value of the investments at the date of derecognition The cumulative gain or loss on disposal reclassified from other equity to retained earnings	For the years ended December 31,
	2020	2019
	$214,428 (88,663)	$122,630 8,753

(4) Financial assets measured at amortized cost

Time deposit Restricted cash - demand deposits Total Current Non-current Total	As of December 31,	As of December 31,
	2020	2019
	$152,363 15,178	$115,330 85,782
	$167,541	$201,112
	$145,063 22,478	$108,030 93,082
	$167,541	$201,112

Please refer to Note 8 for more details on financial assets measured at amortized cost under pledge.

(5) Notes receivable

Notes receivables arising from operating activities Less: loss allowance Total	As of December 31,	As of December 31,
	2020	2019
	$1,665,619 (1,273)	$1,409,876 (752)
	$1,664,346	$1,409,124

Notes receivable were not pledged.

The Group adopted IFRS 9 for impairment assessment. Please refer to Note 6(20) for more details on loss allowance and Note 12 for more details on credit risk

(6) Accounts receivable, accounts receivable - related parties, and long - term receivable

Accounts receivable and accounts receivable - related parties

Accounts receivable Less: loss allowance Subtotal Accounts receivable - related parties Less: loss allowance Subtotal Total	As of December 31,	As of December 31,
	2020	2019
	$5,860,507 (67,223)	$6,492,259 (99,170)
	5,793,284	6,393,089
	7,094 -	3,976 -
	7,094	3,976
	$5,800,378	$6,397,065

Long-term receivable

Long-term receivable
Construction retainage receivable Overdue receivables Subtotal Less: loss allowance Total	As of December 31,
	2020	2019
	$1,352,463 361,805	$665,433 402,168
	1,714,268 (110,126)	1,067,601 (143,180)
	$1,604,142	$924,421

Accounts receivable and long - term receivable were not pledged.

Other long-term receivable

Other long-term receivable
Receivable on sold of subsidiary Please refer to Note 6(27) for more detail.	As of December 31,
	2020	2019
	$-	$323,284

Accounts receivable are generally on 30-120 day terms. The total carrying amount as of December 31, 2020 and 2019 were NT$7,581,869 thousand and NT$7,563,836 thousand, respectively. Please refer to Note 6(20) for more details on loss allowance of accounts receivable for the years ended December 31, 2020 and 2019. Please refer to Note 12 for more details on credit risk management.

(7) Inventories

Inventories
Raw materials Building for sale Land of construction Work in process Finished goods Total	As of December 31,
	2020	2019
	$403,302 79,872 210,367 24,357 35,078	$196,468 79,872 210,367 26,738 46,892
	$752,976	$560,337

For the year ended December 31, 2020, the Group recognized the cost of inventories in expense amounted to NT$13,478,428 thousand, including gain from price recovery of inventories NT$3,298 thousand.

For the year ended December 31, 2019, the Group recognized the cost of inventories in expense amounted to NT$15,643,730 thousand, including gain from price recovery of inventories NT$2,366 thousand.

Due to the rising market price of cement in 2020 and 2019, the Group generated the gain from price recovery of inventories.

Please refer to Note 8 for more details on land of construction under pledge.

(8) Investments accounted for using the equity method

The following table lists the investments accounted for using the equity method of the Group:

	As of December 31,	As of December 31,	As of December 31,	As of December 31,
	2020		2019
	Carrying Percentage of		Carrying Percentage of
Investees	amount	ownership (%)	amount	ownership (%)
Investments in associates:
LIANYUAN CONCH CEMENT CO., LTD.	$724,912	20%	$740,528	20%
YANG JUNG LEI JIN BUILDING MATERIALS LTD.(Note)	- -		117,608 30%
RAIXIN QUALITY PRODUCTS LTD.	16,727	39%	15,735	39%
Total	$741,639		$873,871

Note ： The Group disposed the capital of YANG JUNG LEI JIN BUILDING MATERIALS LTD. in May 2020. The consideration of disposal was RMB$30,000 thousand, and the gain of disposal was RMB$5,396 thousand.

The Group’s investments listed above are not individually material. The aggregate carrying amount of the Group’s investments in associates is NT$741,639 thousand and NT$873,871 thousand as of December 31, 2020 and 2019, respectively. The aggregate financial information as follows:

as follows:
Profit or loss from continuing operations Other comprehensive income (post-tax) Total comprehensive income	For the years ended December 31,
	2020	2019
	$121,167 -	$129,637 (374)
	$121,167	$129,263

The associates had no contingent liabilities or capital commitments as of December 31, 2020 and 2019.

(9) Property, plant and equipment

Owner occupied property, plant and equipment

Land	Buildings	Machinery and equipment	Office equipment	Transportation equipment	Leased assets and land Improvements	Construction in progress and equipment awaiting examination	Other equipment	Total
$5,005,016 63,660 - 13,800 -	$1,712,984 31,686 (11,610) 145,495 7,301	$2,709,514 77,119 (38,216) 15,738 4,773	$23,793 3,347 (217) (379) 336	$2,515,682 104,798 (130,468) 73,885 (65,455)	$131,690 4,879 (2,664) 1,682 -	$1,210,726 173,717 - (169,177) 13	$200,629 8,010 (24,443) 331 278	$13,510,034 467,216 (207,618) 81,375 (52,754)
$5,082,476	$1,885,856	$2,768,928	$26,880	$2,498,442	$135,587	$1,215,279	$184,805	$13,798,253
$5,493,891 - (431) - (488,444) - -	$2,579,871 26,858 (3,811) (854,902) 14,571 (49,603) -	$4,859,517 94,485 (71,505) (2,086,302) 5,543 (92,104) (120)	$74,253 2,888 (2,196) (48,634) - (2,518) -	$2,414,908 46,564 (83,629) (49,613) 215,574 (28,122) -	$132,613 1,641 (430) - (2,134) - -	$545,129 256,971 - (1,008) 409,672 (38) -	$219,236 11,247 (30,352) - 868 (370) -	$16,319,418 440,654 (192,354) (3,040,459) 155,650 (172,755) (120)
$5,005,016	$1,712,984	$2,709,514	$23,793	$2,515,682	$131,690	$1,210,726	$200,629	$13,510,034
$- - - - -	$942,513 68,327 (11,610) (857) 3,898	$2,101,508 106,301 (37,311) (7,044) 4,009	$18,266 2,280 (179) (176) 246	$1,013,855 150,919 (126,202) 1,865 (17,420)	$116,060 8,269 (2,664) - -	$- - - - -	$151,433 11,850 (24,421) 4,776 79	$4,343,635 347,946 (202,387) (1,436) (9,188)
$-	$1,002,271	$2,167,463	$20,437	$1,023,017	$121,665	$-	$143,717	$4,478,570
$- - - - - -	$1,188,720 80,678 (3,643) (303,269) - (19,973)	$3,503,593 199,359 (70,412) (1,465,475) - (65,557)	$60,929 2,286 (1,944) (40,926) - (2,079)	$1,012,696 132,295 (83,035) (39,326) - (8,775)	$104,207 14,417 (430) - (2,134) -	$- - - - - -	$168,876 12,685 (30,318) - 225 (35)	$6,039,021 441,720 (189,782) (1,848,996) (1,909) (96,419)
$-	$942,513	$2,101,508	$18,266	$1,013,855	$116,060	$-	$151,433	$4,343,635
$215,335 - -	$322 - -	$987 - -	$- - -	$29,980 - (1,500)	$- - -	$- - -	$268 - -	$246,892 - (1,500)
$215,335	$322	$987	$-	$28,480	$-	$-	$268	$245,392
$215,335 - -	$322 - -	$987 - -	$- - -	$30,720 - (740)	$- - -	$- - -	$268 - -	$247,632 - (740)
$215,335	$322	$987	$-	$29,980	$-	$-	$268	$246,892
$4,867,141	$883,263	$600,478	$6,443	$1,446,945	$13,922	$1,215,279	$40,820	$9,074,291
$4,789,681	$770,149	$607,019	$5,527	$1,471,847	$15,630	$1,210,726	$48,928	$8,919,507

Components of building that have different useful lives are main building structure, equipment of pre-mixed concrete, air conditioning units and elevators, which are depreciated over 55 years, 5~20 years, 8 years and 15 years, respectively.

Please refer to Note 8 for more details on property, plant and equipment under pledge.

Part of the property, plant and equipment were held temporarily under third parties’ names because of regulatory requirements. The relevant security procedures have been fully implemented.

(10) Investment property

Land	Buildings	Total
$3,322,780 5,169 - -	$2,056,224 3,551 (35,425) (278,290)	$5,379,004 8,720 (35,425) (278,290)
$3,327,949	$1,746,060	$5,074,009
$3,352,794 - (84,815) 54,801	$2,463,978 776 (409,750) 1,220	$5,816,772 776 (494,565) 56,021
$3,322,780	$2,056,224	$5,379,004
$- - - -	$1,091,406 41,475 (23,092) (25,105)	$1,091,406 41,475 (23,092) (25,105)
$-	$1,084,684	$1,084,684
$- - -	$1,220,406 45,751 (174,751)	$1,220,406 45,751 (174,751)
$-	$1,091,406	$1,091,406

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

Land	Buildings	Total
$- - -	$12,954 - -	$12,954 - -
$-	$12,954	$12,954
$- - -	$12,954 - -	$12,954 - -
$-	$12,954	$12,954
$3,327,949	$648,422	$3,976,371
$3,322,780	$951,864	$4,274,644
	For the years ended December 31,
	2020	2019
	$139,902 (84,707)	$163,184 (84,251)
	$55,195	$78,933

Please refer to Note 8 for more details on investment property under pledge.

Investment properties held by the Group are not measured at fair value but for which the fair value is disclosed. The fair value measurements of the investment properties are categorized within Level 3. The fair value of investment properties was NT$11,602,266 thousand as of December 31, 2020. The fair value NT$60,592 thousand has been determined based on valuations performed by an independent valuer. The valuation method used are comparison approach and income approach. The remaining NT$11,541,674 thousand was assessed by the Group. The valuation method used is land development analysis approach which supporting by market evidence and current land value.

The fair value of investment properties was NT$11,828,962 thousand as of December 31, 2019. The fair value NT$7,748,662 thousand has been determined based on valuations performed by an independent valuer. The valuation method used are comparison approach and income approach. The remaining NT$4,080,300 thousand was assessed by the Group. The valuation method used is land development analysis approach which supporting by market evidence and current land value.

Part of the Investment property were held temporarily under third parties’ names because of regulatory requirements. The relevant security procedures have been fully implemented.

(11) Intangible assets

Miningright	Concession	Computer software	Total
$- - - - -	$3,994,792 7,189 (1,927) 278,290 -	$39,513 6,003 - 125 15	$4,034,305 13,192 (1,927) 278,415 15
$-	$4,278,344	$45,656	$4,324,000
$302,326 16,681 - (307,694) - (11,313)	$3,966,110 28,682 - - - -	$40,049 8,998 (7,704) (1,006) (749) (75)	$4,308,485 54,361 (7,704) (308,700) (749) (11,388)
$-	$3,994,792	$39,513	$4,034,305
$- - - -	$294,111 95,114 29,378 -	$22,781 7,497 - 15	$316,892 102,611 29,378 15
$-	$418,603	$30,293	$448,896
$5,456 5,394 - (10,453) - (397) -	$200,722 94,316 - - - - (927)	$23,693 8,099 (7,704) (1,006) (225) (76) -	$229,871 107,809 (7,704) (11,459) (225) (473) (927)
$-	$294,111	$22,781	$316,892
$-	$3,859,741	$15,363	$3,875,104
$-	$3,700,681	$16,732	$3,717,413

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

Recognized as amortized amount of intangible assets are as follows.

Operating costs Operating expenses	2020	2019
	$95,713	$93,776
	$6,898	$14,033

(12) Short-term loans

Unsecured bank loans Secured bank loans Total Interest rates Credit bank loans Secured bank loans	As of December 31,	As of December 31,
	2020	2019
	$300,000 1,000,000	$1,666,000 1,264,000
	$1,300,000	$2,930,000
	0.85%~0.88% 0.85%~0.88%	1.00%~1.07% 1.00%~1.09%

The Group’s unused short-term lines of credits amount (including short-term loans and longterm loans) to NT$9,110,549 thousand and NT$5,972,000 thousand as of December 31, 2020 and 2019, respectively.

Please refer to Note 8 for more details on assets pledged as security for short-term loans.

(13) Short-term notes and bills payable

Guarantee institution	As of December 31,	As of December 31,
	2020	2019
Guaranteed by bank Less`：`Unamortised discount Net Interest rates	$- -	$2,960,000 (1,672)
	$-	$2,958,328
	-	0.55%~1.048%

Please refer to Note 8 for more details on assets pledged as security for short-term notes and bills payable.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

(14) Long-term loans

Details of long-term loans as of December 31, 2020 and 2019 are as follows:

Lenders	As of December 31, 2020	Maturity date and terms of repayment
Secured long-term loan Syndicated loans from Bank of Taiwan Cooperative (Note) Bank of KGI O-Bank Bank of Taiwan Bank of Taiwan Unsecured long-term loan Bank of KGI Bank of Taiwan Bank of Taiwan Subtotal Less: Organization cost Current portion Non-current portion Interest rates	$1,724,000 220,000 200,000 400,000 450,000 380,000 400,000 450,000	Effective October 11, 2018. Since the first use date, principal is repaid in 29 half-yearly payments; interest paid every quarter. Supplemental contract signed on July 14, 2020, the payment terms was changed to below: From October 11, 2020 to April 11, 2022 is the grace period for repayment of the loan principal; repayment of the principal NT$49,000 thousand from October 11, 2022 to April 11, 2032. The last payment will pay off the principal and interest on October 11, 2032. Revolving use within the credit period and the repayment will be due in a lump-sum payment on the expiration of the term. Revolving use within the credit period and the repayment will be due in a lump-sum payment on the expiration of the term. Effective December 25, 2018, principal is repaid in 10 half-yearly payments, the 1ndto 4ndpayments will be NT$25,000 thousand, 5nd to 8ndpayments will be NT$50,000 thousand and 9ndto 10nd payments will be NT$100,000 thousand; interest paid every month. Effective December 25, 2019, principal is repaid in 10 half-yearly payments, the 1ndto 4ndpayments will be NT$25,000 thousand, 5nd to 8ndpayments will be NT$50,000 thousand and 9ndto 10nd payments will be NT$100,000 thousand; interest paid every month. Revolving use within the credit period and the repayment will be due in a lump-sum payment on the expiration of the term. Effective December 25, 2018, principal is repaid in 10 half-yearly payments, the 1ndto 4ndpayments will be NT$25,000 thousand, 5nd to 8ndpayments will be NT$50,000 thousand and 9ndto 10nd payments will be NT$100,000 thousand; interest paid every month. Effective December 25, 2019, principal is repaid in 10 half-yearly payments, the 1ndto 4ndpayments will be NT$25,000 thousand, 5nd to 8ndpayments will be NT$50,000 thousand and 9ndto 10nd payments will be NT$100,000 thousand; interest paid every month.
	4,244,000 (4,759)
	4,219,241 (300,000)
	$3,919,241
	0.8871%~1.5895%

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

Lenders	As of December 31, 2019	Maturity date and terms of repayment
Secured long-term loan Syndicated loans from Bank of Taiwan Cooperative (Note) Bank of KGI Bank of Taiwan Bank of Taiwan Unsecured long-term loan Bank of KGI Bank of Taiwan Bank of Taiwan Subtotal Less: Organization cost Current portion Non-current portion Interest rates	$1,793,000 220,000 450,000 500,000 380,000 450,000 500,000	Effective October 11, 2018. Since the first use date, principal is repaid in 29 half-yearly payments. The 1ndto 28ndpayments will be NT$69,000 thousand, The last payment will pay off the principal and interest. Revolving use within the credit period and the repayment will be due in a lump-sum payment on the expiration of the term. Effective December 25, 2018, principal is repaid in 10 half-yearly payments, the 1ndto 4ndpayments will be NT$25,000 thousand, 5nd to 8ndpayments will be NT$50,000 thousand and 9ndto 10nd payments will be NT$100,000 thousand; interest paid every month. Effective December 25, 2019, principal is repaid in 10 half-yearly payments, the 1ndto 4ndpayments will be NT$25,000 thousand, 5nd to 8ndpayments will be NT$50,000 thousand and 9ndto 10nd payments will be NT$100,000 thousand; interest paid every month. Revolving use within the credit period and the repayment will be due in a lump-sum payment on the expiration of the term. Effective December 25, 2018, principal is repaid in 10 half-yearly payments, the 1ndto 4ndpayments will be NT$25,000 thousand, 5nd to 8ndpayments will be NT$50,000 thousand and 9ndto 10nd payments will be NT$100,000 thousand; interest paid every month. Effective December 25, 2019, principal is repaid in 10 half-yearly payments, the 1ndto 4ndpayments will be NT$25,000 thousand, 5nd to 8ndpayments will be NT$50,000 thousand and 9ndto 10nd payments will be NT$100,000 thousand; interest paid every month.
	4,293,000 (5,164)
	4,287,836 (338,000)
	$3,949,836
	1.05%~2.0105%

Note: Subsidiary TAIPEI PORT TERMINAL COMPANY LIMITED borrowed syndicated loans which is led by Bank of Taiwan Cooperative. The total credit line of the 20-year loan was NT$2,700,000 thousand and the loan agreement was signed in October 2011. Land use rights and part of property, plant and equipment acquired under the contract, Bulk & General Cargo Terminal No.2 of Taipei Port building and operating, were pledged as collateral for secured loans. When the Company become operation officially after completing the construction of the terminal, the Company need to observe two financial ration based on the clause in the next fiscal year a) Ratio of Liability to Equity shall not exceed 200%; b) Interest Coverage Ratio may not be less than 2. The ratio of liability to equity and interest coverage ratio were tested per year.

The Company already completing the construction of the terminal in December, 2017, and staring to operation. Supplemental agreement for the syndicated loans has been signed on July 14, 2020. The Company need to maintain the a) Ratio of Liability to Equity shall not exceed 200% as of December 31, 2019 and b) Interest Coverage Ratio may not be less than 2 as of December 31, 2021. If not, TAIPEI PORT TERMINAL COMPANY LIMITED should pay to bank the compensation fee which is 0.05% of the outstanding principal balance to the bank.

The Group’s unused long-term lines of credits amount was contained by short-term lines of credits amount as of December 31, 2020 and 2019, respectively. Please refer to Note 6(12).

Please refer to Note 8 for more details on assets pledged as security for long-term loans.

(15) Long-term notes payable

Long-term notes payable Less: Unamortised discount Total Interest rates	2020	2019
	$1,750,000 (1,704)	$- -
	$1,748,296	$-
	0.31%~0.34%	-

The long-term notes and bills payable are a commercial promissory note signed in April 10, 2020 with the Bank of O-bank for a five-year period during January 17, 2017 to January 16, 2022, which will be repaid at the expiration of the contract. The amounts of unused financing facilities were NT$2,700,000 thousand.

Please refer to Note 8 for more details on assets pledged as security for long-term notes and bills payable.

(16) Post-employment benefits

Defined contribution plan

The Company and its domestic subsidiaries adopt a defined contribution plan in accordance with the Labor Pension Act of the R.O.C. Under the Labor Pension Act, the Company and its domestic subsidiaries will make monthly contributions of no less than 6% of the employees’ monthly wages to the employees’ individual pension accounts. The Company and its domestic subsidiaries have made monthly contributions of 6% of each individual employee’s salaries or wages to employees’ pension accounts.

Subsidiaries located in the People’s Republic of China will contribute social welfare benefits based on a certain percentage of employees’ salaries or wages to the employees’ individual pension accounts.

Pension benefits for employees of overseas subsidiaries and branches are provided in accordance with the local regulations.

Expenses under the defined contribution plan for the years ended December 31, 2020 and 2019 are NT$19,265 thousand and NT$19,404 thousand, respectively.

Defined benefits plan

The Company and its domestic subsidiaries adopt a defined benefit plan in accordance with the Labor Standards Act of the R.O.C. The pension benefits are disbursed based on the units of service years and the average salaries in the last month of the service year. Two units per year are awarded for the first 15 years of services while one unit per year is awarded after the completion of the 15th year. The total units shall not exceed 45 units. Under the Labor Standards Act, the Company and its domestic subsidiaries contribute an amount equivalent to 2% of the employees’ total salaries and wages on a monthly basis to the pension fund deposited at the Bank of Taiwan in the name of the administered pension fund committee. Before the end of each year, the Company and its domestic subsidiaries assess the balance in the designated labor pension fund. If the amount is inadequate to pay pensions calculated for workers retiring in the same year, the Company and its domestic subsidiaries will make up the difference in one appropriation before the end of March the following year.

The Ministry of Labor is in charge of establishing and implementing the fund utilization plan in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund. The pension fund is invested in-house or under mandation, based on a passive-aggressive investment strategy for long-term profitability. The Ministry of Labor establishes checks and risk management mechanism based on the assessment of risk factors including market risk, credit risk and liquidity risk, in order to maintain adequate manager flexibility to achieve targeted return without over-exposure of risk. With regard to utilization of the pension fund, the minimum earnings in the annual distributions on the final financial statement shall not be less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. Treasury Funds can be used to cover the deficits after the approval of the competent authority. As the Company does not participate in the operation and management of the pension fund, no disclosure on the fair value of the plan assets categorized in different classes could be made in accordance with paragraph 142 of IAS 19. The Group expects to contribute NT$38,824 thousand to its defined benefit plan during the 12 months beginning after December 31, 2020.

The average duration of the defined benefits plan obligation is both 12 years as of December 31, 2020 and 2019, respectively.

Pension costs recognized in profit or loss for the years ended December 31, 2020 and 2019:

Current period service costs Interest expense (income) of net defined benefit liabilities (assets) Total	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$10,500 1,604	$11,537 2,372
	$12,104	$13,909

Changes in the defined benefit obligation and fair value of plan assets are as follows:

As of December 31,	As of December 31,	As of December 31,
2020	2019	2018
$485,974 (314,215)	$492,135 (274,789)	$489,084 (248,827)
$171,759	$217,346	$240,257

Reconciliation of liability of the defined benefit plan is as follows:

Defined benefit obligation	Fair value of plan assets	Benefit liability (asset)
$489,084 11,537 4,825	$(248,827) - (2,453)	$240,257 11,537 2,372
16,362	(2,453)	13,909
(355) 14,689 (4,323)	- - (8,247)	(355) 14,689 (12,570)
10,011	(8,247)	1,764
(23,322) -	23,322 (38,584)	- (38,584)
492,135 10,500 3,629	(274,789) - (2,025)	217,346 10,500 1,604
14,129	(2,025)	12,104

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

Defined benefit obligation	Fair value of plan assets	Benefit liability (asset)
183 20,248 (13,893)	- - (9,021)	183 20,248 (22,914)
6,538	(9,021)	(2,483)
(20,828) -	26,828 (55,208)	- (55,208)
$485,974	$(314,215)	$171,759

The following significant actuarial assumptions are used to determine the present value of the defined benefit obligation:

defined benefit obligation:
Discount rate Expected rate of salary increases	As of December 31,
	2020	2019
	0.32%~0.39% 1.50%~2.00%	0.69%~0.74% 1.50%~2.00%

A sensitivity analysis for significant assumption as of December 31, 2020 and 2019 is, as shown below:

shown below:
Discount rate increases by 0.5% Discount rate decreases by 0.5% Future salary increases by 0.5% Future salary decreases by 0.5%	Effect on the defined benefit obligation
	2020		2019
	Increase defined benefit obligation	Decrease defined benefit obligation	Increase defined benefit obligation	Decrease defined benefit obligation
	$- 30,821 30,309 -	$(28,404) - - (28,245)	$- 32,938 32,507 -	$(24,398) - - (24,344)

The sensitivity analyses above are based on a change in a significant assumption (for example: change in discount rate or future salary), keeping all other assumptions constant. The sensitivity analyses may not be representative of an actual change in the defined benefit obligation as it is unlikely that changes in assumptions would occur in isolation of one another.

There was no change in the methods and assumptions used in preparing the sensitivity analyses compared to the previous period.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

(17) Provisions

Maintenance warranties	Decommissioning, restoration and rehabilitation	Total
$4,596 - -	$4,801 2,100 -	$9,397 2,100 -
$4,596	$6,901	$11,497
$- 4,596	$- 6,901	$- 11,497
$4,596	$6,901	$11,497
$- 4,596	$- 4,801	$- 9,397
$4,596	$4,801	$9,397

Maintenance warranties

A provision is recognized for expected warranty claims on construction, based on past experience, management’s judgment and other known factors.

Decommissioning, restoration and rehabilitation

A provision has been recognized for decommissioning costs associated with a factory owned by the Group. The Group is committed to decommissioning the site as a result of the construction of the factory.

(18) Equity

A. Common stock

Authorized shares (thousand shares) Authorized capital Issued shares (thousand shares) Issued capital	As of December 31,	As of December 31,
	2020	2019
	2,000,000	2,000,000
	$20,000,000	$20,000,000
	1,180,000	1,385,000
	$11,800,000	$13,850,003

Each at a par value of NT$10 and each share have one voting right and a right to receive dividends.

Resolved by the Company’s Board of Directors on May 6, 2020, the Company approved to cancel NT$61,910 thousand treasury shares, with 6,191 thousand shares. Record date for capital reduction was May 31, 2020. The registration of capital reduction was completed on June 19, 2020.

To adjust its capital structure and enhancing the return on shareholders’ equity, the Company resolved in its shareholders’ meeting on June 17, 2020 to implement a capital reduction in cash through the cancellation of shares. The total capital reduction amounted to NT$1,988,093 thousand, which represented the cancellation of 198,809 thousand shares (capital reduction ratio was 14.4189%). After the capital reduction, the issued capital was NT$11,800,000 thousand, which represented the 1,180,000 shares. The capital reduction was approved by the Taiwan FSC on July 31, 2020. On August 11, 2020, the Company’s Board of Directors resolved the reference date of the capital reduction was August 11, 2020. The registration of capital reduction was completed on September 1, 2020 and the record date for reverse split and stock conversion was October 15, 2020.

B. Capital surplus

Additional paid-in capital Treasury share transactions The differences between the fair value of the consideration paid or received from acquiring or disposing subsidiaries and the carrying amounts of the subsidiaries Changes in ownership interests in subsidiaries Share-based payments Donated surplus Others Total	As of December 31,	As of December 31,
	2020	2019
	$551,242 308,382 - 187,289 103,200 13,180 15,261	$551,173 307,290 5 187,289 103,200 13,001 15,261
	$1,178,554	$1,177,219

According to the Company Act, the capital reserve shall not be used except for filling the deficit of the company. When a company incurs no loss, it may distribute the capital reserves related to the income derived from the issuance of new shares at a premium or income from endowments received by the company. The distribution could be made in cash or in the form of dividend shares to its shareholders in proportion to the number of shares being held by each of them.

C. Treasury stock

On January 1, 2020, RUEI SHIN CONSTRUCION CO., LTD., transferred its owned assets which is the Company’s stock, to REIXIN ASSET MANAGEMENT INC., because of the business division plan.

The Company resolved at its board meeting on March 17, 2020 to repurchase stock. The Company estimated that 100,000 thousand shares will be repurchased. As of December 31, 2020, the Company had bought back 6,191 thousand shares at a total amount of NT$61,841 thousand. The Company had canceled the buyback shares and registered the change with the MOEA.

The Company resolved in its board of directors’ meeting on August 11, 2020 to implement a capital reduction in cash through the cancellation of shares. The capital reduction ratio was 14.4189%. As of December 31, 2020, the Company’s shares held by the subsidiaries were NT$4,789 thousand represented 3,116 thousand shares after the capital reduction. These shares held by subsidiaries were acquired for the purpose of financing before the amendment of the Company Act on November 12, 2001.

As of December 31, 2019, the Company’s shares held by the subsidiaries were NT$10,039 thousand represented 3,641 thousand shares. These shares held by subsidiaries were acquired for the purpose of financing before the amendment of the Company Act on November 12, 2001.

D. Retained earnings and dividend policies

According to the Company’s Articles of Incorporation, the Company’s annual earnings, if any, shall be distributed as follows:

a. Payment of all taxes and dues;
b. Offset prior years’ operation losses;
c. Set aside 10% of the remaining amount after deducting items a. and b. as legal reserve;
d. Set aside or reverse special reserve in accordance with law and regulations; and
e. The distribution of the remaining portion, if any, will be recommended by the Board of Directors and resolved in the shareholders’ meeting.

The Company’s business environment is stable, the dividend policy shall be determined pursuant to factors such as the profitability and its future funding requirements, as well as stockholders ‘interest, balancing dividends and the Company’s long-term financial planning. It could be paid in cash or the form of share dividends. Accordingly, at least 10% of the dividends must be paid in the form of cash.

According to the Company Act, a company needs distribute the legal reserve unless where such legal reserve amounts to the total authorized capital. The legal reserve can be used to fill the deficit of a company. When a company incurs no loss, it may distribute the portion of legal reserve which exceeds 25% of the paid-in capital, by issuing new shares or by distributing cash in proportion to the number of shares held by each shareholder.

Following the adoption of TIFRS, the FSC on 6 April 2012 issued Order No. FinancialSupervisory-Securities-Corporate-1010012865. On a public company's first-time adoption of the TIFRS, for any unrealized revaluation gains and cumulative translation adjustments (gains) recorded to shareholders’ equity that the company elects to transfer to retained earnings by application of the exemption under IFRS 1, the company shall set aside an equal amount of special reserve. Following a company’s adoption of the TIFRS for the preparation of its financial reports, when distributing distributable earnings, it shall set aside to special reserve, from the profit/loss of the current period and the undistributed earnings from the previous period, an amount equal to “other net deductions from shareholders’ equity for the current fiscal year, provided that if the company has already set aside special reserve according to the requirements in the preceding point, it shall set aside supplemental special reserve based on the difference between the amount already set aside and other net deductions from shareholders’ equity. For any subsequent reversal of other net deductions from shareholders’ equity, the amount reversed may be distributed.

As of January 1, 2020, and 2019, special reserve set aside for the first-time adoption of T- IFRS amounted to NTD1,874,430 thousand. The Company did not reverse special reserve to retained earnings for the period ended December 31, 2020 and 2019 as a result of the use, disposal of or reclassification of related assets. As of December 31, 2020 and 2019, special reserve set aside for the first-time adoption of T-IFRS amounted to NT$1,874,430 thousand.

Details of the 2020 and 2019 earnings distribution and dividends per share as approved and resolved by the Board of Director’s meeting and shareholders’ meeting on March 15, 2021 and June 17, 2020, are as follows:

Legal reserve Common stock-cash dividend	Appropriation of earnings	Appropriation of earnings	Dividendper share(NT$)	Dividendper share(NT$)
	2020	2019	2020	2019
	$238,477 1,770,000	$110,166 413,643	$- 1.50	$- 0.30

Please refer to Note 6(22) for further details on employees’ compensation and remuneration to directors and supervisors.

E. Non-controlling interests

Beginning balance Profit attributable to non-controlling interests Other comprehensive income, attributable to non- controlling interests, net of tax: Remeasurements of defined benefit plan Donated surplus Acquisition of subsidiary Acquisition of additional interest in a subsidiary Acquisition of cash divided in a subsidiary Ending balance	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$1,091,518 77,880 288 199 42,000 (1,702) (79,136)	$1,097,997 84,302 431 40 - (13,619) (77,633)
	$1,131,047	$1,091,518

(19) Operating revenue

Revenue from contracts with customers Sale of goods revenue Other operating revenue (Note) Subtotal Lease revenue Total	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$18,325,646 412,252	$17,974,371 867,514
	18,737,898 139,902	18,841,885 163,184
	$18,877,800	$19,005,069

Note: Including port revenue, shipment revenue and engineering revenue.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued)

(Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

Analysis of revenue from contracts with customers during the year 2020 and 2019 is as follows:

A. Disaggregation of revenue

For the year ended December 31, 2020

For the year ended December 31, 2020
Sale of goods Others Total Timing of revenue recognition: At a point in time	Taiwan Segment	Pre-mixed concrete Segment in Mainland China	Total
	$15,157,624 412,002	$3,168,022 250	$18,325,646 412,252
	$15,569,626	$3,168,272	$18,737,898
	$15,569,626	$3,168,272	$18,737,898

For the year ended December 31, 2019

For the year ended December 31, 2019	ber 31, 2019
Taiwan Segment Sale of goods $13,150,248 Others 865,558 Total $14,015,806 Timing of revenue recognition: At a point in time $14,015,806	Taiwan Segment	Cement Segment in Mainland China	Pre-mixed concrete Segment in Mainland China	Total
	$13,150,248 865,558	$3,279,917 276	$1,544,206 1,680	$17,974,371 867,514
	$14,015,806	$3,280,193	$1,545,886	$18,841,885
		$3,280,193	$1,545,886	$18,841,885

B. Contract assets and contract liabilities

Contract liabilities (Advance receipts)	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$16,014	$26,272

C. Assets recognized from costs to fulfil a contract

None.

(20) Expected credit losses

Operating expenses - Expected credit (gains) losses Notes receivable Accounts receivable Long-term receivable Total	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$521 (23,578) 71,093	$(1,000) (21,857) 71,924
	$48,036	$49,067

Please refer to Note 12 for more details on credit risk.

The credit risk for the Group’s financial assets measured at amortized cost as of December 31, 2020 and 2019 are assessed as low (the same as the assessment result on January 1, 2019). Therefore, the loss allowance is measured at an amount equal to 12-month expected credit losses (loss ratio of 0 %).

The Group measures the loss allowance of its accounts receivables (including note receivables, accounts receivables and long-term receivable) at an amount equal to lifetime expected credit losses. The assessment of the Group’s loss allowance as at December 31, 2020 and 2019 is as follow:

A. The Group considers the Companying of trade receivables by counterparties’ credit rating, by geographical region and by industry sector and its loss allowance is measured by using a provision matrix, details are as follow:

December 31, 2020

Group 1: The total carrying amount of notes receivable is NT$1,665,619 thousand, its loss allowance amounting to NT$1,273 thousand which is measured at expected credit loss ratio of 0~15%.

Notyet due		Overdue	Overdue		Total
	90-180 days	181-365 days	1 -2years	>=2years
$3,911,128 -%	$881,271 3%	$211,562 3%	$467,480 3%	$396,160 4%	$5,867,601 67,223
1,729	28,952	7,237	13,008	16,297
$3,909,399	$852,319	$204,325	$454,472	$379,863	$5,800,378

Group 3: The total carrying amount of overdue receivables is NT$361,805 thousand, its loss allowance amounting to NT$102,021 thousand. Due to the customer with higher credit risk, the loss allowance is measured at expected credit loss ratio of 20%~100%.

Group 4: Construction retainage receivable is money held back by a customer until the construction is completed, usually exceed one year and interest-free.

Not yet due		Overdue	Overdue		Total
	90-180 days	181-365 days 1 -2 years		>=2 years
$720,347 -%	$190,025 -%	$238,347 2%	$203,744 2%	$- -%	$1,352,463 8,105
-	789	3,707	3,609	-
$720,347	$189,236	$234,640	$200,135	$-	$1,344,358

December 31, 2019

Group 1: The total carrying amount of notes receivable is NT$1,409,876 thousand, its loss allowance amounting to NT$752 thousand which is measured at expected credit loss ratio of 0~15%.

Not yet due		Overdue	Overdue		Total
	90-180 days	181-365 days	1 -2 years	>=2 years
$4,128,741 -%	$801,891 3%	$706,795 3%	$677,925 5%	$180,883 10%	$6,496,235 99,170
2,093	26,582	19,501	32,817	18,177
$4,126,648	$775,309	$687,294	$645,108	$162,706	$6,397,065

Group 3: The total carrying amount of overdue receivables is NT$402,168 thousand, its loss allowance amounting to NT$131,027 thousand. Due to the customer with higher credit risk, the loss allowance is measured at expected credit loss ratio of 70%~100%.

Group 4: Construction retainage receivable is money held back by a customer until the construction is completed, usually exceed one year and interest-free.

Not yet due		Overdue	Overdue		Total
	90-180 days	181-365 days 1 -2 years		>=2 years
$99,269 -%	$202,583 -%	$98,186 2%	$121,511 3%	$143,884 5%	$665,433 12,153
-	26	1,955	3,717	6,455
$99,269	$202,557	$96,231	$117,794	$137,429	$653,280

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

B. The movement in the loss allowance of Accounts receivable, accounts receivable and longterm receivable during the period ended December 31, 2020 and 2019 is as follows:

Notes receivable	Accounts receivable	Long-term receivable
$752 521 -	$99,170 (23,578) (8,369)	$143,180 71,093 (104,147)
$1,273	$67,223	$110,126
Notes receivable	Accounts receivable	Long-term receivable
$1,752 (1,000) -	$124,421 (21,857) (3,394)	$87,995 71,924 (16,739)
$752	$99,170	$143,180

(21) Leases
A. Group as a lessee

The Group leases various properties, including real estate such as land and buildings and transportation equipment. The lease terms range from 2 to 50 years.

The Group’s leases effect on the financial position, financial performance and cash flows are as follow:

a. Amount recognized in the balance sheet
(a) Right-of-use Assets

The carrying amount of right-of-use assets

The carrying amount of right-of-use assets
Land Buildings Transportation equipment Total	As of December 31,
	2020	2019
	$730,946 59,381 2,510	$842,991 57,908 4,164
	$792,837	$905,063

During the years ended December 31, 2020 and 2019, the Group’s additions to right-of-use assets amounting to NT$26,881 thousand and NT$81,907 thousand, respectively.

(b) Lease Liabilities

Lease Liabilities Current Noncurrent	As of December 31,	As of December 31,
	2020	2019
	$738,618	$831,605
	94,248 644,370	82,645 748,960

During the years ended December 31, 2020 and 2019, please refer to Note 6(23) finance costs for Interest on lease liabilities; please refer to Note 12(5) liquidity risk management for maturity analysis of lease liabilities.

b. Amounts recognized in the statement of comprehensive income

Depreciation charge for right-of-use assets

Land Buildings Transportation equipment Total	As of December 31,	As of December 31,
	2020	2019
	$86,833 15,675 2,438	$84,664 17,664 1,593
	$104,946	$103,921

c. Income and costs relating to leasing activities

The expenses relating to short-term leases The expenses relating to leases of low-value assets (Not including the expenses relating to short-term leases of low-value assets)	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$3,671 168	$2,779 1,038

d. Cash outflows related to leasing activities

During the years ended December 31, 2020 and 2019, the Group’s total cash outflows for leases amounting to NT$110,358 thousand and NT$164,302 thousand.

e. Other information related to leasing activities

Extension and termination options

Some of the Group’s property rental agreement contain extension and termination options. In determining the lease terms, the non-cancellable period for which the Group has the right to use an underlying asset, together with both periods covered by an option to extend the lease if the Group is reasonably certain to exercise that option and periods covered by an option to terminate the lease if the Group is reasonably certain not to exercise that option. These options are used to maximize operational flexibility in terms of managing contracts. The majority of extension and termination options held are exercisable only by the Group.

After the commencement date, the Group reassesses the lease term upon the occurrence of a significant event or a significant change in circumstances that is within the control of the lessee and affects whether the Group is reasonably certain to exercise an option not previously included in its determination of the lease term, or not to exercise an option previously included in its determination of the lease term.

B. Group as a lessor

Please refer to Note 6(10) for details on the Group’s owned investment properties. Leases of owned investment properties are classified as operating leases as they do not transfer substantially all the risks and rewards incidental to ownership of underlying assets.

Lease income for operating leases Income relating to fixed lease payments and variable lease payments that depend on an index or a rate	As of December 31,	As of December 31,
	2020	2019
	$139,902	$163,184

Please refer to Note 6(9) for relevant disclosure of property, plant and equipment for operating leases under IFRS 16. For operating leases entered by the Group, the undiscounted lease payments to be received and a total of the amounts for the remaining years as at December 31, 2020 and 2019 are as follows:

years as at December 31, 2020 and 2019 are as follows:
Not later than one year Later than one year but not later than two years Later than two years but not later than three years Later than three years but not later than four years Later than four years but not later than five years Later than five years Total	As of December 31,
	2020	2019
	$156,770 127,833 106,487 65,187 60,427 368,258	$100,521 97,643 96,547 85,912 98,094 596,254
	$884,962	$1,074,971

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

(22) Summary statement of employee benefits, depreciation and amortization expenses by function during the years ended December 31, 2020 and 2019:

		For the years ended December 31,	For the years ended December 31,	For the years ended December 31,	For the years ended December 31,
		2020			2019
	Operating costs	Operating expenses	Total amount	Operating costs	Operating expenses	Total amount
Employee benefits expense
Salaries	$762,758	$392,701	$1,155,459	$750,032	$366,419	$1,116,451
Labor and health insurance	35,325	24,759	60,084	44,931	24,480	69,411
Pension	20,279	11,090	31,369	21,619	11,694	33,313
Other employee benefits expense	14,296	16,068	30,364	15,802	13,903	29,705
Depreciation	446,289	48,078	494,367	513,843	77,549	591,392
Amortization	95,713	6,898	102,611	93,776	14,033	107,809

According to the Articles of Incorporation, 3% of profit of the current year is distributable as employees’ compensation and no higher than 3% of profit of the current year is distributable as remuneration to directors. However, the company's accumulated losses shall have been covered. The Company may, by a resolution adopted by a majority vote at a meeting of Board of Directors attended by two-thirds of the total number of directors, have the profit distributable as employees’ compensation in the form of shares or in cash; and in addition, there to a report of such distribution is submitted to the shareholders’ meeting. Information on the Board of Directors’ resolution regarding the employees’ compensation and remuneration to directors and supervisors can be obtained from the “Market Observation Post System” on the website of the TWSE.

Based on profit of the year ended December 31, 2020, the Company estimated the amounts of the employees’ compensation and remuneration to directors and supervisors for the year ended December 31, 2020 both to be 3% of profit of the current year, recognized as employee benefits expense. A resolution was passed at a Board of Directors meeting held on March 15, 2021 to distribute NT$79,985 thousand in cash as employees’ compensation and remuneration to directors both of 2020. No material differences exist between the estimated amount and the actual distribution.

A resolution was passed at a Board of Directors meeting held on March 17, 2020 to distribute NT$35,831 thousand in cash as employees’ compensation and remuneration to directors both of 2019. No material differences exist between the estimated amount and the actual distribution.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

(23) Non-operating income and expenses

A. Interest income

Interest income
Cash in the bank Short-term notes Others Total	For the years ended December 31,
	2020	2019
	$27,749 3,291 107	$22,296 2,074 98
	$31,147	$24,468

B. Other income

Dividend income Premium overpayment revenue (Note) Others Total	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$91,863 132,619 70,156	$88,581 - 67,365
	$294,638	$155,946

Note ： TAIPEI PORT TERMINAL COMPANY LIMITED has renegotionaion the fixed royalty of “Bulk & General Cargo Terminal No.2 of Taipei Port building and operating” with Port of Keeling, Taiwan International Ports Corporation, Ltd. in June 2020. Port of Keeling, Taiwan International Ports Corporation, Ltd. agreed to reduce the rate of royalty fee in June 2020 and returned the overpayment from December 2018 to December 2019.

C. Other gains and losses

Gain on disposal of property, plant and equipment (Loss)gain on disposal of Investment property Gain on disposal of subsidiaries (Note) Gain on disposal of associates Foreign exchange gain(loss), net Gain on financial assets at fair value through profit or loss Other expense-others Total	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$3,983 (12,333) - 23,085 33,379 30 (13,905)	$17,249 297,874 478,145 31,294 (55,868) 177 (44,344)
	$34,239	$724,527

Note: Please refer to Note 6(27) for more detail.

D. Finance costs

Finance costs
Interest on borrowings from bank Interest on notes payable Interest on bonds payable Interest on lease liabilities Total	For the years ended December 31,
	2020	2019
	$(85,283) (8,099) - (5,572)	$(85,220) (19,632) (14,000) (9,133)
	$(98,954)	$(127,985)

(24) Components of other comprehensive income

For the year ended December 31, 2020

Not to be reclassified to profit or loss in subsequent periods: Remeasurements of defined benefit plans Unrealized gains on fair value through other comprehensive income equity instrument investment To be reclassified to profit or loss in subsequent periods: Exchange differences resulting from translating the financial statements of a foreign operation Total of other comprehensive (loss) income	Arising during the period	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax relating to components of other comprehensive income	Other comprehensive income, net of tax
	$2,483 (146,497) (54,895)	$- - -	$2,483 (146,497) (54,895)	$(497) - -	$1,986 (146,497) (54,895)
	$(198,909)	$-	$(198,909)	$(497)	$(199,406)

For the year ended December 31, 2019

Not to be reclassified to profit or loss in subsequent periods: Remeasurements of defined benefit plans Unrealized gains on fair value through other comprehensive income equity instrument investment To be reclassified to profit or loss in subsequent periods: Exchange differences resulting from translating the financial statements of a foreign operation Share of other comprehensive loss of associates and joint ventures accounted for under the equity method Total of other comprehensive (loss) income	Arising during the period	Reclassification adjustments during the period	Other comprehensive income, before tax	Income tax relating to components of other comprehensive income	Other comprehensive income, net of tax
	$(1,764) 222,803 (60,000) (374)	$- - - -	$(1,764) 222,803 (60,000) (374)	$353 - - -	$(1,411) 222,803 (60,000) (374)
	$160,665	$-	$160,665	$353	$161,018

(25) Income tax

The major components of income tax expense (income) are as follows:

Income tax expense (income) recognized in profit or loss

For the years ended December 31, 2020 2019 Current income tax expense (income): Current income tax charge $456,644 $153,997 Adjustments in respect of current income tax of prior periods (3,747) (3,418) Deferred tax expense (income): Deferred tax expense (income) relating to origination and reversal of temporary differences 45,568 (204,414) Deferred tax expense (income) relating to origination and reversal of tax loss and tax credit (13,254) 180,795 Tax expense (income) recognized in the period for previously unrecognized tax loss, tax credit or temporary difference of prior periods (330,224) (42,097) Total income tax (income) expense $154,987 $84,863 Income tax relating to components of other comprehensive income For the years ended December 31, 2020 2019 Deferred tax expense: Remeasurements of defined benefit plans $497 $(353) Income tax related to components of other comprehensive (loss) income $497 $(353)	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$456,644 (3,747) 45,568 (13,254) (330,224)	$153,997 (3,418) (204,414) 180,795 (42,097)
	$154,987	$84,863
Deferred tax expense: Remeasurements of defined benefit plans Income tax related to components of other comprehensive (loss) income
	2020	2019
	$497	$(353)
	$497	$(353)

Income tax relating to components of other comprehensive income

A reconciliation between tax expense and the product of accounting profit multiplied by applicable tax rates is as follows:

Accounting profit before tax from continuing operations Tax at the domestic rates applicable to profits in the country concerned Tax effect of revenues exempt from taxation Tax effect of deductible expenses from taxation Tax effect of non-deductible expenses from taxation Tax effect of deferred tax assets / liabilities Others Basic tax 5% surtax on unappropriated retained earnings Adjustments in respect of current income tax of prior periods Total income tax expense recognized in (profit) or loss	For the years ended December 31,	For the years ended December 31,
	2020 $2,705,794 $623,151 (120,566) (54,314) - (316,118) (2,270) - 28,851 (3,747) $154,987	2019
		$1,270,824
		$242,125 (151,569) - 2,820 (32,725) 45 21,291 6,294 (3,418)
		$84,863

Deferred tax assets (liabilities) relate to the following:

For the year ended December 31, 2020

Beginning balance as of January1,2020	Deferred tax income (expense) recognized in profit or loss	Deferred tax income (expense) recognized in other comprehensive income
$3,588 (738) 27,790 2,139 318,983 25,599 75,648 (635,269) 1,915 33,731	$(407) (2,974) (13,165) (271) 330,224 (8,763) (8,621) - 249 1,638	$- - - - - - (497) - - -
$(146,614)	$297,910	$(497)

$489,393
$(636,007)

For the year ended December 31, 2019

Beginning balance as of January1,2019	Deferred tax income (expense) recognized in profit or loss	Deferred tax income (expense) recognized in other comprehensive income	Disposal of subsidiaries	Ending balance as of December 31, 2019
$3,130 (5,007) 23,332 2,612 112,120 29,302 80,231 (635,268) (58) 1,526 255,184 133,051	$458 4,269 4,458 (473) 206,863 69 (4,936) (635,268) 58 389 (12,387) (133,051)	$- - - - - - 353 - - - - -	$- - - - - (3,772) - - - - (209,066) -	$3,588 (738) 27,790 2,139 318,983 25,599 75,648 (635,269) - 1,915 33,731 -
$155	$65,716	$353	$(212,838)	$(146,614)

$640,488				$489,393
$(640,333)				$(636,007)

The following table contains information of the unused tax losses in Taiwan of the Group:

Occurredyear	Deficit amounts	Unused tax losses	Unused tax losses	Last credityear
		2020	2019
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020	$12,307 479 475 54,247 661 776 1,459 112,524 209,176 168,470 26,519	$- 479 423 676 661 776 1,459 1,497 45,180 163,786 26,519	$455 479 475 1,220 661 776 1,459 3,263 134,688 168,470 -	2020 2021 2022 2123 2024 2025 2026 2027 2028 2029 2030
		$241,456	$311,946

The following table contains information of the unused tax losses in Mainland Chain of the Group:

Occurredyear	Deficit amounts	Unused tax	losses as of	Last credityear
		2020	2019
2016 2017	$409,630 114,238	$- -	$51,451 10,975	2021 2022
		$-	$62,426

Details of the Company’s unused tax credit are as follows:

Laws and regulations	Credits item	Unused balance	Unused balance	Last credityear
		2020	2019
Statute for Promoting Private Participation in Public Construction	Investment tax credit	$-	$60,000	2020

Unrecognized deferred tax assets

As of December 31, 2020, and 2019, deferred tax assets that have not been recognized amount to NT$237,326 thousand and NT$676,232 thousand, respectively.

Unrecognized deferred tax liabilities relating to the investment in subsidiaries

The Group did not recognize any deferred tax liability for taxes that would be payable on the unremitted earnings of the Group’s overseas subsidiaries, as the Group has determined that undistributed profits of its subsidiaries will not be distributed in the foreseeable future. As of December 31, 2020, and 2019, the taxable temporary differences associated with investment in subsidiaries, for which deferred tax liability has not been recognized, aggregate to NT$335,520 thousand and NT$273,009 thousand, respectively.

As of December 31, 2020, the assessment of the income tax returns of the Group and its subsidiaries is as follows:

The Company KUNYUNG CONSTRUCTION & ENGINEERING CO., LTD	The assessment of income tax returns	Notes
	Assessed and approved up to 2018 Assessed and approved up to 2018	None.

The assessment of income tax returns Notes RUEI SHIN CONSTRUCTIN CO., LTD. Assessed and approved up to 2018 WELLPOOL CO., LTD. Assessed and approved up to 2018 GAPE-GOLDSUN CORPORATION Assessed and approved up to 2018 GOLDSUN NIHON CEMENT CO., LTD. Assessed and approved up to 2018 TAIPEI PORT TERMINAL COMPANY LIMITED Assessed and approved up to 2018 HUA YA DEVELOPMENT CO., LTD. Assessed and approved up to 2019 GOLDSUN INNOVATIVE BUILDING MATERIALS CO., LTD. Assessed and approved up to 2019 GOYU BUILDING MATERIALS CO., LTD. Assessed and approved up to 2018 GIMPO MARINE CO., LTD. Assessed and approved up to 2018

(26) Earnings per share

Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the parent entity by the weighted average number of ordinary shares outstanding during the year.

Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinary equity holders of the parent entity (after adjusting for interest on the convertible preference shares) by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

A. Basic earnings per share Profit attributable to ordinary equity holders of the Company (in thousands) Weighted average number of ordinary shares outstanding for basic earnings per share (in thousands) Basic earnings per share (NT$)	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$2,472,927	$1,101,659
	1,299,128	1,381,359
	$1.90	$0.80

B.Diluted earnings per share Profit attributable to ordinary equity holders of the Company (in thousands) Profit attributable to ordinary equity holders of the Company after dilution (in thousands) Effect of dilution: Employee bonus-stock (in thousands) Weighted average number of ordinary shares outstanding after dilution (in thousands) Diluted earnings per share (NT$)	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$2,472,927	$1,101,659
	1,299,128 3,935	1,381,359 2,488
	1,303,063	1,383,847
	$1.90	$0.80

There have been no other transactions involving ordinary shares or potential ordinary shares between the reporting date and the date of completion of the financial statements.

(27) Changes in ownership interests in subsidiaries
A. Acquisition of shares issued by subsidiaries

In 2020, the Company acquired an additional 0.15% of the voting shares of WELLPOOL CO., LTD., A cash consideration of NT$2,899 thousand was paid to the non-controlling interest shareholders. Therefore, the difference between the actual acquisition and the book value, amounting to NT$5 thousand and NT$1,192 thousand recognized as a decrease in paid-in capital and unappropriated earnings, respectively.

In 2019, the Company acquired an additional 2% of the voting shares of WELLPOOL CO., LTD., increasing its ownership to 51%. A cash consideration of NT$28,128 thousand was paid to the non-controlling interest shareholders. Therefore, the difference between the actual acquisition and the book value, amounting to NT$1,614 thousand and NT$13,249 thousand recognized as a decrease in paid-in capital and unappropriated earnings, respectively.

B. Disposal of subsidiary

The Board of Directors of the Company resolved on October 3,2019 to dispose of 100% equity of GOLDSUN COMENT (FUJIAN) CO., LTD. GREAT SMART LTD., that owns the 100% shareholding of GOLDSUN COMENT (FUJIAN) CO., LTD. signed an equity transfer agreement with the buyer On October 10, 2019. The Group has completed the equity transfer on October 11, 2019 and has lost control.

(a) Consideration of disposal: NT$1,616,421 thousand (net of costs and expenses that may be incurred in equity transactions)

It is agreed in the equity transfer agreement that the equity transfer price shall be paid in three installments 30%, 50% and 20% before November 10, 2019, April 10, 2020, and October 10, 2021, respectively. The first installment was postponed until January 21, 2020. As of December 31, 2020, the amount of third phase receivable recognized as other receivable was NT$323,284 thousand. As of December 31, 2019, the amount of third phase receivable that recognized as long-term receivable was NT$323,284 thousand, and the amount of total first and second phase receivable that recognized as other receivable was NT$1,293,137 thousand.

(b) Analysis of assets and liabilities of subsidiary as of the date losing control

Cash and cash equivalents Notes receivable Accounts receivable Other receivable Inventories Prepayments Property, plant and equipment Right-of-use assets Intangible asset Deferred tax asset Notes payable Accounts payable Other payable Advance payment Long-term loans (other payables) Total net assets Gain on disposal of subsidiary Consideration collected Reduce: Net disposal assets Reduce: Exchange differences on translation of foreign Gain on disposal of subsidiary	Carrying amount
	$152,140 172,418 29,381 34,524 207,430 131,776 1,209,946 1,590 358,054 201,607 (7,959) (189,567) (64,008) (61,729) (1,227,629)
	$947,974
	$1,616,421 (947,974) (190,302)
	$478,145

(28) Subsidiaries that have material non-controlling interests

Financial information of subsidiaries that have material non-controlling interests is provided below:

Proportion of equity interest held by non-controlling interests:

Name	Country of Incorporation and operation	For the years ended December 31,	For the years ended December 31,
		2020	2019
WELLPOOL CO., LTD. and its subsidiary	Taiwan	49%	49%

Note: The holding percentage mentioned above is disclosed as the comprehensive holding percentage. The company mentioned above own subsidiaries, and thus the financial information mentioned below is consolidated financial information.

Accumulated balances of material non-controlling interest:

WELLPOOL CO., LTD. and its subsidiary Profit/(loss) allocated to material non-controlling interest: WELLPOOL CO., LTD. and its subsidiary	As of December 31,	As of December 31,
	2020	2019
	2020	2019
	$72,189	$91,100

The summarized financial information of these subsidiaries is provided below. This information is based on amounts before inter-company eliminations.

WELLPOOL CO., LTD. and its subsidiary

Summarized information of profit or loss:

Summarized information of profit or loss:
Operating revenue Profit of (loss) for the period from continuing operations Total comprehensive income for the period	For the years ended December 31,
	2020	2019
	$823,858 146,314 146,899	$939,992 180,464 181,335

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

Summarized information of financial position:

Current assets Non-current assets Current liabilities Non-current liabilities	As of December 31,	As of December 31,
	2020	2019
	$484,242 726,144 137,617 11,967	$448,264 762,998 140,026 13,522

Summarized cash flow information:

Operating activities Investing activities Financing activities Net (decrease) increase in cash and cash equivalents	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$202,460 (50,936) (166,204) (14,680)	$312,251 (18,461) (169,790) 124,000

7. Related party transactions

Information of the related parties that had transactions with the Group during the financial reporting period is as follows:

Name and nature of relationship of the related parties

Name of the relatedparties	Nature of relationshipof the relatedparties
TAIWAN SECOM CO., LTD. and subsidiary RAIXIN QUALITY PRODUCTS LTD. YANG JUNG LEI JIN BUILDING MATERIALS LTD. (Note) TRUST SANDSTONE CO., LTD. HOBBY WORKS CO., LTD. CHYI YUH CONSTRUCTION CO., LTD. FULL MAX CORPORATION LIMITED	Group with significant influence over the Group Associate Associate Other related party Other related party Other related party Other related party

Note: Beginning from May 15, 2020, the Company is no longer a subsidiary given the fact that the Company disposed its all held share.

(1) Operating revenue - Other operating revenue

Group with significant influence over the Group Associates Other related party FULL MAX CORPORATION LIMITED Others Total	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$755 - 103,537 88,919	$- 70 - 34,842
	$193,211	$34,912

The sales price and term to related parties are equivalent to third parties.

(2) Operating Cost (including purchase and other operating cost)

Group with significant influence over the Group Other related party FULL MAX CORPORATION LIMITED Total	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$598,169 378,735	$628,090 -
	$976,904	$628,090

The purchase price to the above related parties was determined through agreement based on the market rates. The payment terms from the related party suppliers are comparable with third party suppliers.

(3) Accounts receivable - related parties

Group with significant influence over the Group Other related party Total	As of December 31,	As of December 31,
	2020	2019
	$9 7,085	$827 3,149
	$7,094	$3,976

(4) Other receivables - related parties

Group with significant influence over the Group Associates Other related party Total	As of December 31,	As of December 31,
	2020	2019
	$11,849 3 -	$13,445 - 8
	$11,852	$13,453

(5) Notes payable - related parties

Group with significant influence over the Group (6) Accounts payable - related parties Group with significant influence over the Group (7) Other payables - related parties Group with significant influence over the Group (8) Prepayments Associates YANG JUNG LEI JIN BUILDING MATERIALS LTD. (9) Lease-related parties A. Rental income and deposits received: a. Lease income Group with significant influence over the Group Associates Other related party Total	As of December 31,	As of December 31,
	2020	2019
	$235	$135
	As of December 31,
	2020	2019
	$58,265	$65,512
	As of December 31,
	2020	2019
	$442	$60
	As of December 31,
	2020	2019
	$-	$129,224
	As of December 31,
	2020	2019
	$9,831 - 90	$10,088 28 610
	$9,921	$10,726

b. Guarantee deposits

Group with significant influence over the Group Other related party Total B. Lease expense Group with significant influence over the Group C. Right-of-use assets Group with significant influence over the Group D. Lease liabilities Group with significant influence over the Group E. Interest expense Group with significant influence over the Group	As of December 31,	As of December 31,
	2020	2019
	$947 -	$898 104
	$947	$1,002
	As of December 31,
	2020	2019
	$2,831	$148
	As of December 31,
	2020	2019
	$-	$1,163
	As of December 31,
	2020	2019
	$-	$1,171
	As of December 31,
	2020	2019
	$2	$30

(10) The Group has purchased equipment from a group with significant influence over the Group amounted to NT15,442 thousand and NT$33,664 thousand for the years ended December 31, 2020 and 2019, respectively.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

(11) Key management personnel compensation

Short-term employee benefits Post-employment benefits Total	As of December 31,	As of December 31,
	2020	2019
	$86,459 308	$81,252 218
	$86,767	$81,470

8. Assets pledged as security

The following table lists assets of the Group pledged as security:

Assets pledged for security	Carryingamount	Carryingamount	Secured liabilities
	December 31, 2020	December 31, 2019
Inventory - Land of construction Financial assets at fair value through other comprehensive income, current Financial assets at fair value through other comprehensive income, non-current Securities (Note) Financial assets measured at amortized cost, current Financial assets measured at amortized cost, non-current Investment property Property, plant and equipment-Land and building Property, plant and equipment-Machinery and equipment Intangible assets-Concession Guarantee deposits Total	$210,367 531,360 437,780 780,000 8,163 22,478 2,222,786 4,632,899 48,402 3,050,168 20,000	$210,367 537,510 778,221 807,000 71,130 93,082 2,489,673 4,519,252 15,575 2,676,359 20,000	Bank loan Bank loan`、`C/P Bank loan`、`C/P Bank loan`、`C/P Restricted account`、`Loan guarantee Performance guarantee Bank loan`、`C/P Bank loan`、`C/P Bank loan Bank loan Performance guarantee
	$11,964,403	$12,218,169

Note: The Group’s subsidiaries which were consolidated by the Company.

9. Commitments and contingencies

(1) Promissory notes issued by the Group to secure bank loans and construction performance amounted to NT$3,105,659 thousand as of December 31, 2020.
(2) The Group's unused letters of credit for importing raw materials amounted to NT$29,451 thousand.

10. Losses due to major disasters

None.

11. Significant subsequent events

On February 26, 2010, the Board of Directors of GOLDSUN INNOVATIVE BUILDING MATERIALS CO., LTD. approved the dissolution application, and the dissolution reference date is March 1, 2021.

12. Others

(1) Categories of financial instruments

Financial assets Financial assets at fair value through profit or loss: Mandatorily measured at fair value through profit or loss Financial assets at fair value through other comprehensive income Financial assets measured at amortized cost: Cash and equivalent cash (excluding cash on hand) Financial assets measured at amortized cost Notes receivable Accounts receivable (including related parties) Other receivables (including related parties) Long-term receivables Refundable deposits Total	As of December 31,	As of December 31,
	2020	2019
	$994 1,961,655 2,479,644 167,541 1,664,346 5,800,378 420,396 1,604,142 47,726	$949 2,231,103 3,679,804 201,112 1,409,124 6,397,065 1,351,148 1,247,705 75,387
	$14,146,822	$16,593,397

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

Financial liabilities

Financial liabilities
Financial liabilities at amortized cost: Short-term loans Short-term notes and bills payable Notes payable (including related parties) Accounts payable (including related parties) Other payables (including related parties) Lease liability Long-term loan (including due in one year) Long-term notes and bills payable Guarantee deposits Total	As of December 31,
	2020	2019
	$1,300,000 - 704,081 2,303,604 939,296 738,618 4,219,241 1,748,296 54,361	$2,930,000 2,958,328 350,294 2,186,130 852,900 831,605 4,287,836 - 51,668
	$12,007,497	$14,448,761

(2) Financial risk management objectives and policies

The Group’s principal financial risk management objective is to manage the market risk, credit risk and liquidity risk related to its operating activates. The Group identifies, measures and manages the aforementioned risks based on the Group’s policy and risk appetite.

The Group has established appropriate policies, procedures and internal controls for financial risk management. Before entering into significant transactions, due approval process by the Board of Directors and Audit Committee must be carried out based on related protocols and internal control procedures. The Group complies with its financial risk management policies at all times.

(3) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of the changes in market prices. Market risk includes currency risk, interest rate risk and other price risk (such as equity risk).

In practice, it is rarely the case that a single risk variable will change independently from other risk variable. In other words, there is usually interdependencies between risk variables. However, the sensitivity analysis disclosed below does not take into account the interdependencies between risk variables.

Foreign currency risk

The Group’s exposure to the risk of changes in foreign exchange rates relates primarily to the Group’s operating activities (when revenue or expense are denominated in a different currency from the Group’s functional currency) and the Group’s net investments in foreign subsidiaries.

The Group has certain foreign currency receivables to be denominated in the same foreign currency with certain foreign currency payables, therefore natural hedge is received. The Group also uses forward contracts to hedge the foreign currency risk on certain items denominated in foreign currencies. Furthermore, as net investments in foreign subsidiaries are for strategic purposes, they are not hedged by the Group.

The foreign currency sensitivity analysis of the possible change in foreign exchange rates on the Group’s profit is performed on significant monetary items denominated in foreign currencies as of the end of the reporting period. The Group’s foreign currency risk is mainly related to the volatility in the exchange rates for USD and CNY. The information of the sensitivity analyses as follows:

When NTD strengthens/weakens against USD by 10%, the profit for the years ended December 31, 2020 and 2019 is decreased/increased by NT$47,846 thousand and NT$34,507 thousand, respectively.

When NTD strengthens/weakens against CNY by 10%, the profit for the years ended December 31, 2020 and 2019 is decreased/increased by NT$586 thousand and NT$1,090 thousand, respectively.

Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s loans and receivables at floating interest rates, bank borrowings with fixed interest rates and floating interest rates.

The Group manages its interest rate risk by maintaining a balanced portfolio of fixed and floating interest loans and debts.

The interest rate sensitivity analysis is performed on items assumed to be possessed for a fiscal year and exposed to interest rate risk as of the end of the reporting period, including borrowings with floating interest rates. The analysis indicates that when the interest rates increase / decrease by ten basis points, the Group’s profit would decrease / increase by NT$4,953 thousand and NT$7,062 thousand for the years ended December 31, 2020 and 2019, respectively.

Equity price risk

The fair value of the Group’s listed and unlisted equity securities is susceptible to market price risk arising from uncertainties about future values of the investment securities. The Group’s listed and unlisted equity securities are classified under financial assets at fair value through other comprehensive income. The Group manages the equity price risk through diversification and placing limits on individual and total equity instruments. Reports on the equity portfolio are submitted to the Group’s senior management on a regular basis. The Group’s Board of Directors reviews and approves all equity investment decisions.

For the year ended December 31, 2020 and 2019, an increase/decrease of 10% in the price of the listed equity securities classified as financial assets at fair value through other comprehensive income could have an impact of NT$141,894 thousand an NT$151,610 thousand on the equity attributable to the Group, respectively.

Please refer to Note 12(8) for sensitivity analysis information of other equity instruments or derivatives that are linked to such equity instruments whose fair value measurement is categorized under Level 3.

(4) Credit risk management

Credit risk is the risk that a counterparty will not meet its obligations under a contract, leading to a financial loss. The Group is exposed to credit risk from operating activities (primarily for accounts receivables and notes receivables) and from its financing activities, including bank deposits and other financial instruments.

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Credit limits are established for all customers based on their financial position, rating from credit rating agencies, historical experience, prevailing economic condition and the Company’s internal rating criteria etc. Certain customer’s credit risk will also be managed by taking credit enhancing procedures, such as requesting for prepayment.

As of December 31, 2020 and 2019, amounts receivables from top ten customers represent 30% and 26% of the accounts receivables of the Group, respectively. The credit concentration risk of other accounts receivables is insignificant.

Credit risk from balances with banks and other financial instruments is managed by the Group’s treasury in accordance with the Group’s policy. The Group only transacts with counterparties approved by the internal control procedures, which are banks and financial institutions, companies and government entities with good credit rating and with no significant default risk. Consequently, there is no significant credit risk for these counter parties.

The Group adopted IFRS 9 to assess the expected credit losses. Except for contract assets and trade receivables, the remaining debt instrument investments which are not measured at fair value through profit or loss, low credit risk for these investments is a prerequisite upon acquisition and by using their credit risk as a basis for the distinction of categories.

The Group makes an assessment at each reporting date as to whether the debt instrument investments are still considered low credit risk, and then further determines the method of measuring the loss allowance and the loss rates.

Financial assets are written off when there is no realistic prospect of future recovery (the issuer or the debtor is in financial difficulties or bankruptcy).

(5) Liquidity risk management

The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of cash and cash equivalents, highly liquid equity investments and bank borrowings. The table below summarizes the maturity profile of the Group’s financial liabilities based on the contractual undiscounted payments and contractual maturity. The payment amount includes the contractual interest. The undiscounted payment relating to borrowings with floating interest rates is extrapolated based on the approaching effective rate as of the end of the reporting period.

Non-derivative financial instruments

As of December 31, 2020 Borrowings Notes payable Accounts payable Other payables Lease liabilities (Note) Long-term notes and bills payable	Less than 1 year	2 to 3 years	4 to 5 years	> 5 years	Total
	$1,651,717 704,081 2,303,604 939,296 102,286 -	$2,032,437 - - - 194,601 1,750,000	$646,888 - - - 153,554 -	$1,437,275 - - - 305,875 -	$5,768,317 704,081 2,303,604 939,296 756,316 1,750,000

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

As of December 31, 2019 Borrowings Short-term notes and bills payable Notes payable Accounts payable Other payables Lease liabilities (Note)	Less than 1 year	2 to 3years	4 to 5years	> 5years	Total
	$3,331,482 2,960,000 350,294 2,186,130 852,900 88,750	$1,677,975 - - - - 206,912	$1,342,427 - - - - 169,592	$1,193,764 - - - - 381,214	$7,545,648 2,960,000 350,294 2,186,130 852,900 846,468

Note:

Including cash flows resulted from short-term leases or leases of low-value assets.
Information about the maturities of lease liabilities is provided in the table below:

Maturities

As of December 31, 2020 As of December 31, 2019	Less than 1 year	2 to 5 years	6 to 10 years	11 to 15 years	> 15 years	Total $756,316 846,468
	$102,286 88,750	$348,155 376,504	$154,876 238,286	$20,451 20,181	$130,548 122,747

(6) Reconciliation for liabilities arising from financing activities

Information of reconciliation of liabilities for the year ended December 31, 2020:

2020.1.1 Cash flow Non-cash change 2020.12.31	Short-term loans	Short-term notes and bills payable	Long-term loans (including due in one year)	Lease liabilities	Guarantee deposits	Long-term notes and bills payable	Balance of liabilities arising from financing activities
	$2,930,000 (1,630,000) -	$2,958,328 (2,958,328) -	$4,287,836 (69,000) 405	$831,605 (106,519) 13,532	$51,668 2,693 -	$- 1,748,296 -	$11,059,437 (3,012,858) 13,937
	$1,300,000	$-	$4,219,241	$738,618	$54,361	$1,748,296	$8,060,516

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

Information of reconciliation of liabilities for the year ended December 31, 2019:

2019.1.1 Cash flow Non-cash change 2019.12.31	Short-term loans	Short-term notes and bills payable	Bonds payable (including due in one year)	Long-term loans (including due in one year)	Lease liabilities	Guarantee deposits	Balance of liabilities arising from financing activities
	$3,165,000 (235,000) -	$1,727,825 1,230,503 -	$1,000,000 (1,000,000) -	$3,725,431 562,000 405	$890,985 (160,485) 101,105	$67,762 (16,094) -	$10,577,003 380,924 101,510
	$2,930,000	$2,958,328	$-	$4,287,836	$831,605	$51,668	$11,059,437

(7) Fair values of financial instruments
A. The methods and assumptions applied in determining the fair value of financial instruments:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used by the Group to measure or disclose the fair values of financial assets and financial liabilities:

a. The carrying amount of cash and cash equivalents, trade receivables, trade payable and other current liabilities approximate their fair value due to their short maturities.
b. For financial assets and liabilities traded in an active market with standard terms and conditions, their fair value is determined based on market quotation price (including listed equity securities and beneficiary certificates etc.) at the reporting date.
c. Fair value of equity instruments without market quotations (including private placement of listed equity securities, unquoted public Group and private Group equity securities) are estimated using the market method valuation techniques based on parameters such as prices based on market transactions of equity instruments of identical or comparable entities and other relevant information (for example, inputs such as discount for lack of marketability, P/E ratio of similar entities and Price-Book ratio of similar entities). The income method assesses the recoverable amount based on the present value of the financial assets that are expected to be received from cash dividends or disposals at the market

d. Fair value of debt instruments without market quotations, bank loans, bonds payable and other non-current liabilities are determined based on the counterparty prices or valuation method. The valuation method uses DCF method as a basis, and the assumptions such as the interest rate and discount rate are primarily based on relevant information of similar instrument (such as yield curves published by the Taipei Exchange, average prices for Fixed Rate Commercial Paper published by Reuters and credit risk, etc.)
e. The fair value of derivatives which are not options and without market quotations, is determined based on the counterparty prices or discounted cash flow analysis using interest rate yield curve for the contract period. Fair value of option-based derivative financial instruments is obtained using the counterparty prices or appropriate option pricing model (for example, Black-Scholes model) or other valuation method (for example, Monte Carlo Simulation).
B. Fair value of financial instruments measured at amortized cost

Among the fair value of the Group’s financial assets and financial liabilities measured at amortized cost, cash and cash equivalents, trade receivables, trade payable and other current liabilities whose carrying amount approximate their fair value.

C. Fair value measurement hierarchy for financial instruments

Please refer to Note 12(8) for fair value measurement hierarchy for financial instruments of the Group.

(8) Fair value measurement hierarchy
A. Fair value measurement hierarchy

All asset and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, based on the lowest level input that is significant to the fair value measurement. Level 1, 2 and 3 inputs are described as follows:

Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities that the entity can access at the measurement date

Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly
Level 3 - Unobservable inputs for the asset or liability

For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group determines whether transfers have occurred between Levels in the hierarchy by re-assessing categorization at the end of each reporting period.

B. Fair value measurement hierarchy of the Group’s assets and liabilities

The Group does not have assets that are measured at fair value on a non-recurring basis. Fair value measurement hierarchy of the Group’s assets and liabilities measured at fair value on a recurring basis is as follows:

As of December 31, 2020 Financial assets: Financial assets at fair value through profit or loss Fund Financial assets at fair value through other comprehensive income Equity instrument measured at fair value through other comprehensive income As of December 31, 2019 Financial assets: Financial assets at fair value through profit or loss Fund Financial assets at fair value through other comprehensive income Equity instrument measured at fair value through other comprehensive income	Level 1	Level 2	Level 3	Total
	$994 1,418,938 Level 1	$- - Level 2	$- 542,717 Level 3	$994 1,961,655 Total
	$949 1,516,095	$- -	$- 715,008	$949 2,231,103

Transfers between Level 1 and Level 2 during the period

During the years ended December 31, 2020 and 2019, there were no transfers between Level 1 and Level 2 fair value measurements.

Reconciliation for fair value measurements in Level 3 of the fair value hierarchy for movements during the period is as follows:

Beginning balances as of January 1, 2020 Acquisition Capital deducted by cash Total gains recognized for the year ended December 31, 2020: Amount recognized in OCI (present in Unrealized gains or losses on measured at fair value through other comprehensive income equity instrument investment) Ending balances as of December 31, 2020 Beginning balances as of January 1, 2019 Capital deducted by cash Total gains recognized for the year ended December 31, 2019: Amount recognized in OCI (present in Unrealized gains or losses on measured at fair value through other comprehensive income equity instrument investment) Ending balances as of December 31, 2019	Assets
	Measured at fair value through other comprehensive income
	Stock
	$715,008 19,249 (6,473) (185,067)
	$542,717
	Assets
	Measured at fair value through other comprehensive income Stock
	$676,222 (2,378) 41,164
	$715,008

Information on significant unobservable inputs to valuation

Description of significant unobservable inputs to valuation of recurring fair value measurements categorized within Level 3 of the fair value hierarchy is as follows:

100

As of December 31, 2020

Financial assets: Measured at fair value through other comprehensive income Stocks Stocks Stocks As Financial assets: Measured at fair value through other comprehensive income Stocks Stocks Stocks	Valuation techniques	Significant unobservable inputs	Quantitative information	Relationship between inputs and fair value	Sensitivityof the input to fair value
	Market approach Earnings per share Income approach Discount rate Asset approach Discount for lack of marketability of December 31, 2019 Valuation techniques Significant unobservable inputs		8.48 1~16.65 20%~60% Quantitative information	The higher the earnings, the higher the fair value of the stocks The higher the discount rate, the lower the fair value of the stocks The higher the discount for lack of marketability, the lower the fair value of the stocks Relationship between inputs and fair value	10% increase (decrease) in the earnings would result in increase (decrease) in the Group’s equity by NT$1,696 thousand. 10% increase (decrease) in the discount rate would result in increase (decrease) in the Group’s equity by NT$2,444 thousand. 10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group’s equity by NT$49,766 thousand. Sensitivityof the input to fair value
	Market approach Income approach Asset approach	Earnings per share Discount rate Discount for lack of marketability	9.21~28.36 9.71~15.08 20%	The higher the earnings, the higher the fair value of the stocks The higher the discount rate, the lower the fair value of the stocks The higher the discount for lack of marketability, the lower the fair value of the stocks	10% increase (decrease) in the earnings would result in increase (decrease) in the Group’s equity by NT$2,351 thousand 10% increase (decrease) in the discount rate would result in increase (decrease) in the Group’s equity by NT$137 thousand 10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Group’s equity by NT$287 thousand

101

Valuation process used for fair value measurements categorized within Level 3 of the fair value hierarchy

The Group’s Finance Department is responsible for validating the fair value measurements and ensuring that the results of the valuation are in line with market conditions, based on independent and reliable inputs which are consistent with other information, and represent exercisable prices. The Department analyses the movements in the values of assets and liabilities which are required to be re-measured or re-assessed as per the Group’s accounting policies at each reporting date.

C. Fair value measurement hierarchy of the Group’s assets and liabilities not measured at fair value but for which the fair value is disclosed

As of December 31, 2020

Level 1 Level 2 Level 3 Total Financial assets not measured at fair value but for which the fair value is disclosed: Investment properties (please refer to Note 6(10)) $- $- $11,602,266 $11,602,266 As of December 31, 2019 Level 1 Level 2 Level 3 Total Financial assets not measured at fair value but for which the fair value is disclosed: Investment properties (please refer to Note 6(10)) $- $- $11,828,962 $11,828,962

(9) Significant assets and liabilities denominated in foreign currencies

Information regarding the significant assets and liabilities denominated in foreign currencies is listed below:

is listed below:
Financial assets	(Unit: Foreign currency: thousands, NTD: thousands) As of 31 December,2020
	Foreign currencies	Foreign exchange rate	NTD
	$1,680 1,337 165,505	28.48 4.38 4.38	$47,846 5,856 724,912
Monetary items: USD RMB Non-monetary items: RMB

102

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

Financial assets	As of 31 December, 2019	As of 31 December, 2019	As of 31 December, 2019
	Foreign currencies	Foreign exchange rate	NTD
	$11,510 2,528 199,103	29.98 4.31 4.31	$345,070 10,896 858,136
Monetary items: USD RMB Non-monetary items: RMB

The above information is disclosed based on the carrying amount of foreign currency (after conversion of functional currency).

The Group’s entities’ functional currency is various, and hence is not able to disclose the information of exchange gains and losses of monetary financial assets and liabilities by each significant assets and liabilities denominated in foreign currencies.

The foreign exchange gain(loss) was NT$33,379 thousand and NT$(55,868) thousand for the years ended December 31, 2020 and 2019, respectively.

(10) Capital management

The primary objective of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximize shareholder value. The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust dividend payment to shareholders, return capital to shareholders or issue new shares.

13. Additional disclosure

(1) Information at significant transactions

a. Financing provided to other: Please refer to Attachment 1.
b. Endorsement/Guarantee provided to others: Please refer to Attachment 2.
c. Securities held: Please refer to Attachment 3.

103

d. Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million and 20 percent of the capital stock: None.
e. Acquisition of individual real estate with amount exceeding the lower of NT$300 million and 20 percent of the capital stock: None.
f. Disposal of individual real estate with amount exceeding the lower of NT$300 million and 20 percent of the capital stock: None
g. Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million and 20 percent of the capital stock: Attachment 4.
h. Receivables from related parties with amounts exceeding the lower of NT$100 million and 20 percent of capital stock: Attachment 5
i. Financial instruments and derivative transactions: None.
j. Significant intercompany transactions between consolidated entities: Please refer to Attachment 6.
(2) Information on investees

Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to Attachment 7.

(3) Information on investments in mainland China
a. Names, main businesses and products, total amount of paid-in capital, method of investment, accumulated outflow of investment from Taiwan, percentage of ownership, investment income recognized, carrying amount, accumulated inward remittance of earnings, and upper limit on investment of investees in Mainland China: Please refer to Attachment 8.
b. Directly or indirectly significant transactions through third regions with the investees in Mainland China, including price, payment terms, unrealized gain or loss, and other events with significant effects on the operating results and financial condition: Please refer to Attachment 1, and 2.

(4) Information of Major shareholders

List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder: Please refer to Attachment 9.

104

14. Segment information

For management purposes, the Group is organized into business units based on their products and services and has four reportable operating segments as follows:

(1) Taiwan Segment: segment engages in productions and sales of pre-mixed concrete in Taiwan.
(2) Pre-mixed concrete Segment in Mainland China: segment engages in productions and sales of pre-mixed concrete in Mainland China.
(3) Cement Segment in Mainland China: segment engages in productions and sales of cement in Mainland China. The segment has been disposed in October 2019.
(4) Others: segment engages in productions and sales of calcium silicate board, shipping, warehousing and real estate rental.

No operating segments have been aggregated to form the above reportable operating segments.

Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on operating profit or loss and is measured based on accounting policies consistent with those in the consolidated financial statements. However, income taxes are managed on a group basis and are not allocated to operating segments.

Transfer prices between operating segment are on an arm’s length basis in a manner similar to transactions with third parties.

A. Information on profit or loss of the reportable segment:

For the year ended December 31, 2020

Taiwan Segment	Pre-mixed concrete Segment in Mainland China	Subtotal	Other (Note1)	Adjustment and elimination (Note2)	Consolidated
$14,402,763 91,998	$3,168,273 -	$17,571,036 91,998	$1,306,764 1,299,720	$- (1,391,718)	$18,877,800 -
$14,494,761	$3,168,273	$17,663,034	$2,606,484	$(1,391,718)	$18,877,800
$2,506,203	$207,969	$2,714,172	$498,277	$(506,655)	$2,705,794

105

For the year ended December 31, 2019

Taiwan Segment	Pre-mixed concrete Segment in Mainland China	Cement Segment in Mainland China	Subtotal	Other	Adjustment and elimination	Consolidated
$12,728,434 60,735	$3,280,193 -	$1,545,886 -	$17,554,513 60,735	$1,450,556 986,118	$- (1,046,853)	$19,005,069 -
$12,789,169	$3,280,193	$1,545,886	$17,615,248	$2,436,674	$(1,046,853)	$19,005,069

1 Revenue from Taiwan Segment, Cement Segment in Mainland China and Pre-mixed concrete Segment in Mainland China that are operating segments that do not meet the quantitative thresholds for reportable segments.
2 Inter-segment revenue is eliminated on consolidation and recorded under the “adjustment and elimination” column. All other adjustments and eliminations are disclosed below.
B. Information on assets and liabilities of the reportable segment:

The following table presents segment assets and liabilities of the Group’s operating segments as at December 31, 2020 and 2019:

As of December 31, 2020

Taiwan Segment	Pre-mixed concrete Segment in Mainland China	Subtotal	Other	Adjustment and elimination	Consolidated
$16,727	$-	$16,727	$724,912	$-	$741,639
$29,445,600	$4,901,119	$34,346,719	$14,370,263	$(13,988,072)	$34,728,910
$9,246,271	$1,598,100	$10,844,371	$3,560,361	$(1,006,198)	$13,398,534

106

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

As of December 31, 2019

Taiwan Segment	Pre-mixed concrete Segment in Mainland China	Subtotal	Other	Adjustment and elimination	Consolidated
$15,735	$117,608	$133,343	$740,528	$-	$873,871
$32,291,526	$4,367,898	$36,659,424	$15,646,497	$(15,260,928)	$37,044,993
$11,907,177	$1,239,448	$13,146,625	$4,558,389	$(2,135,888)	$15,569,126

107

ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	(Unit:Foreign currency: thousands, NTD: thousands)	(Unit:Foreign currency: thousands, NTD: thousands)	(Unit:Foreign currency: thousands, NTD: thousands)	(Unit:Foreign currency: thousands, NTD: thousands)
No. (Note 1)	Name of financing provider	Name of counter party	Account ( Note 2)	Maximum balance for the period	Ending balance	Actual amount provided	Interest rate	Nature of financing activity(Note 3)	Amount of sales to (purchase from) counter-party	Reason for financing	Allowance for doubtful accounts	Assets pledged		Limit of financing amount for individual counter-party(Note 4)	Limit of total financing amount (Note 4)
												Item	Value
1 2 3 4 5	REI SHIN CONSTRUCTION CO., LTD. KUOYUNG CONSTRUCTION & ENGINEERING CO., LTD. TAICANG PORT GOLDSUN CONCRETE CO., LTD. GOLDSUN CONCRETE (SUZHOU) CO., LTD. GOLDSUN CONCRETE (CHANGSHU) CO., LTD	GOYU BUILDING MATERIALS CO., LTD. GIMPO MARINE CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOYU BUILDING MATERIALS CO., LTD. GIMPO MARINE CO., LTD. GOLDSUN CONCRETE (WUJIANG) CO., LTD. GOLDSUN CONCRETE (CHANGSHU) CO., LTD. KUNSHAN GOLDSUN CONCRETE CO., LTD. GOLDSUN CONCRETE (SUZHOU) CO., LTD. GOLDSUN (SUZHOU) BUILDING MATERIALS CO., LTD. TAICANG PORT GOLDSUN CONCRETE CO., LTD. GOLDSUN CONCRETE (CHANGSHU) CO., LTD. KUNSHAN GOLDSUN CONCRETE CO., LTD. GOLDSUN CONCRETE (WUJIANG) CO., LTD. GOLDSUN (SUZHOU) BUILDING MATERIALS CO., LTD. TAICANG PORT GOLDSUN CONCRETE CO., LTD. GOLDSUN CONCRETE (WUJIANG) CO., LTD. KUNSHAN GOLDSUN CONCRETE CO., LTD. GOLDSUN CONCRETE (SUZHOU) CO., LTD. GOLDSUN (SUZHOU) BUILDING MATERIALS CO., LTD.	Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable	NT$120,000 NT$115,000 NT$900,000 NT$120,000 NT$110,000 RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 100,000 (NT$438,000) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 100,000 (NT$438,000) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 100,000 (NT$438,000)	- - NT$680,000 NT$40,000 NT$110,000 RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 100,000 (NT$438,000) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 100,000 (NT$438,000) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 100,000 (NT$438,000)	- - NT$380,000 NT$10,000 NT$110,000 - - - - - - - RMB 20,000 (NT$87,600) RMB 22,000 (NT$96,360) RMB 30,000 (NT$131,400) - - - - RMB 20,000 (NT$87,600)	- - 0.95% 1.53% 1.45% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01%	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	- - - - - - - - - - - - - - - - - - - -	Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating	- - - - - - - - - - - - - - - - - - - -	Promissory note - - Promissory note - - - - - - - - - - - - - - - -	NT$120,000 - - NT$120,000 - - - - - - - - - - - - - - - -	NT$774,140 NT$774,140 NT$774,140 NT$152,292 NT$152,292 RMB 103,373 (NT$452,242) RMB 103,373 (NT$452,242) RMB 103,373 (NT$452,242) RMB 103,373 (NT$452,242) RMB 103,373 (NT$452,242) RMB 195,611 (NT$855,788) RMB 195,611 (NT$855,788) RMB 195,611 (NT$855,788) RMB 195,611 (NT$855,788) RMB 195,611 (NT$855,788) RMB 256,233 (NT$1,120,938) RMB 256,233 (NT$1,120,938) RMB 256,233 (NT$1,120,938) RMB 256,233 (NT$1,120,938) RMB 256,233 (NT$1,120,938)	NT$774,140 NT$774,140 NT$774,140 NT$152,292 NT$152,292 RMB 103,373 (NT$452,242) RMB 103,373 (NT$452,242) RMB 103,373 (NT$452,242) RMB 103,373 (NT$452,242) RMB 103,373 (NT$452,242) RMB 195,611 (NT$855,788) RMB 195,611 (NT$855,788) RMB 195,611 (NT$855,788) RMB 195,611 (NT$855,788) RMB 195,611 (NT$855,788) RMB 256,233 (NT$1,120,938) RMB 256,233 (NT$1,120,938) RMB 256,233 (NT$1,120,938) RMB 256,233 (NT$1,120,938) RMB 256,233 (NT$1,120,938)

108

ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	ATTACHMENT 1 : Financing provided to others for the year ended December 31, 2020	(Unit:Foreign currency: thousands, NTD: thousands)	(Unit:Foreign currency: thousands, NTD: thousands)	(Unit:Foreign currency: thousands, NTD: thousands)	(Unit:Foreign currency: thousands, NTD: thousands)
No. (Note 1)	Name of financing provider	Name of counter party	Account ( Note 2)	Maximum balance for the period	Ending balance	Actual amount provided	Interest rate	Nature of financing activity(Note 3)	Amount of sales to (purchase from) counter-party	Reason for financing	Allowance for doubtful accounts	Assets pledged		Limit of financing amount for individual counter-party(Note 4)	Limit of total financing amount (Note 4)
												Item	Value
6 7 8	GOLDSUN CONCRETE (WUJIANG) CO., LTD. KUNSHAN GOLDSUN CONCRETE CO., LTD. GOLDSUN (SUZHOU) BUILDING MATERIALS CO., LTD.	TAICANG PORT GOLDSUN CONCRETE CO., LTD. KUNSHAN GOLDSUN CONCRETE CO., LTD. GOLDSUN CONCRETE (CHANGSHU) CO., LTD. GOLDSUN CONCRETE (SUZHOU) CO., LTD. GOLDSUN (SUZHOU) BUILDING MATERIALS CO., LTD. TAICANG PORT GOLDSUN CONCRETE CO., LTD. GOLDSUN CONCRETE (WUJIANG) CO., LTD. GOLDSUN CONCRETE (CHANGSHU) CO., LTD. GOLDSUN CONCRETE (SUZHOU) CO., LTD. GOLDSUN (SUZHOU) BUILDING MATERIALS CO., LTD. TAICANG PORT GOLDSUN CONCRETE CO., LTD. GOLDSUN CONCRETE (WUJIANG) CO., LTD. KUNSHAN GOLDSUN CONCRETE CO., LTD. GOLDSUN CONCRETE (CHANGSHU) CO., LTD. GOLDSUN CONCRETE (SUZHOU) CO., LTD.	Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable Other receivable	RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 100,000 (NT$438,000) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 100,000 (NT$438,000) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400)	RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 100,000 (NT$438,000) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 100,000 (NT$438,000) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400) RMB 80,000 (NT$350,400)	- - - - - - - - - - - - - - -	2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01% 2.01%	2 2 2 2 2 2 2 2 2 2 2 2 2 2 2	- - - - - - - - - - - - - - -	Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating Operating	- - - - - - - - - - - - - - -	- - - - - - - - - - - - - - -	- - - - - - - - - - - - - - -	RMB 302,422 (NT$1,323,040) RMB 302,422 (NT$1,323,040) RMB 302,422 (NT$1,323,040) RMB 302,422 (NT$1,323,040) RMB 302,422 (NT$1,323,040) RMB 165,461 (NT$723,858) RMB 165,461 (NT$723,858) RMB 165,461 (NT$723,858) RMB 165,461 (NT$723,858) RMB 165,461 (NT$723,858) RMB 312,730 (NT$1,368,138) RMB 312,730 (NT$1,368,138) RMB 312,730 (NT$1,368,138) RMB 312,730 (NT$1,368,138) RMB 312,730 (NT$1,368,138)	RMB 302,422 (NT$1,323,040) RMB 302,422 (NT$1,323,040) RMB 302,422 (NT$1,323,040) RMB 302,422 (NT$1,323,040) RMB 302,422 (NT$1,323,040) RMB 165,461 (NT$723,858) RMB 165,461 (NT$723,858) RMB 165,461 (NT$723,858) RMB 165,461 (NT$723,858) RMB 165,461 (NT$723,858) RMB 312,730 (NT$1,368,138) RMB 312,730 (NT$1,368,138) RMB 312,730 (NT$1,368,138) RMB 312,730 (NT$1,368,138) RMB 312,730 (NT$1,368,138)

Note 1: The parent company and its subsidiaries are coded as follows:
(1) The parent company is coded "0".
(2) The subsidiaries are coded consecutively beginning from "1" in the order presented in the table above.
Note 2: Fill in if the nature of financial statement account is financing.
Note 3: The method of filling out the capital loan and nature is:
(1) For business transactions fill in "1"
(2) For short-term financing funds necessity fill in "2"
Note 4: GOLDSUN CONCRETE (WUJIANG) CO., LTD., KUNSHAN GOLDSUN CONCRETE CO., LTD., GOLDSUN (SUZHOU) BUILDING MATERIALS CO., LTD., GOLDSUN CONCRETE (SUZHOU) CO., LTD., TAICANG PORT GOLDSUN CONCRETE CO., LTD., and GOLDSUN CONCRETE (SUZHOU) CO., LTD.. shall not exceed double of the net asset val the latest financial statement. RUEI SHIN CONSTRUCTIN CO., LTD and KUNYUNG CONSTRUCTION & ENGINEERING CO., LTD shall not exceed the 40% net asset value from the latest financial statement.
Note 5: GOLDSUN CONCRETE (WUJIANG) CO., LTD., KUNSHAN GOLDSUN CONCRETE CO., LTD., GOLDSUN (SUZHOU) BUILDING MATERIALS CO., LTD., GOLDSUN CONCRETE (SUZHOU) CO., LTD., TAICANG PORT GOLDSUN CONCRETE CO., LTD., and GOLDSUN CONCRETE (SUZHOU) CO., LTD..'s ending balance would be duplicate calcul
Actual ending balance was RMB$80,000 thousand except RMB$100,000 thousand of GOLDSUN (SUZHOU) BUILDING MATERIALS CO., LTD. The ending balance didn't exceed the limit.

109

ATTACHMENT 2 : Endorsement/Guarantee provided to others f	ATTACHMENT 2 : Endorsement/Guarantee provided to others f	or the year ended December 31, 2020 (Unit:Foreign currency: thousands, NTD: thousands)	or the year ended December 31, 2020 (Unit:Foreign currency: thousands, NTD: thousands)	or the year ended December 31, 2020 (Unit:Foreign currency: thousands, NTD: thousands)	or the year ended December 31, 2020 (Unit:Foreign currency: thousands, NTD: thousands)	or the year ended December 31, 2020 (Unit:Foreign currency: thousands, NTD: thousands)	or the year ended December 31, 2020 (Unit:Foreign currency: thousands, NTD: thousands)	or the year ended December 31, 2020 (Unit:Foreign currency: thousands, NTD: thousands)	or the year ended December 31, 2020 (Unit:Foreign currency: thousands, NTD: thousands)	or the year ended December 31, 2020 (Unit:Foreign currency: thousands, NTD: thousands)	or the year ended December 31, 2020 (Unit:Foreign currency: thousands, NTD: thousands)	or the year ended December 31, 2020 (Unit:Foreign currency: thousands, NTD: thousands)	or the year ended December 31, 2020 (Unit:Foreign currency: thousands, NTD: thousands)
No. (Note 1)	Name of endorsers	Endorsee		Endorsement limit for a single entity (Note 3)	Maximum balance for the period(Note 4)	Ending balance (Note 5)	Actual amount provided(Note 6)	Amount of collateral guarantee/end orsement	Percentage of accumulated guarantee amount to net assets value from the latest financial statement	Limit of total guarantee/endors ement amount (Note 3)	Guarantee provided by Parent Company (Note 7)	Guarantee provided by A Subsidiary (Note 7)	Guarantee provided to Subsidiaries in Mainland China(Note 7)
		Name of endorsees	Relationship (Note 2)
0 1 2 3 4 5 6 7	GOLDSUN BUILDING MATERIALS CO., LTD. REI SHIN CONSTRUCTIN CO., LTD REIXIN ASSET MANAGEMENT INC. GOLDSUN CONCRETE (SUZHOU) CO., LTD. GOLDSUN CONCRETE (CHANGSHU) CO., LTD. GOLDSUN CONCRETE (WUJIANG) CO., LTD. GOLDSUN (SUZHOU) BUILDING MATERIALS CO., LTD. KUNSHAN GOLDSUN CONCRETE CO., LTD.	GOYU BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN CONCRETE (SUZHOU) CO., LTD. and other three companies GOLDSUN CONCRETE (SUZHOU) CO., LTD. and other three companies GOLDSUN CONCRETE (SUZHOU) CO., LTD. and other three companies GOLDSUN CONCRETE (SUZHOU) CO., LTD. and other three companies GOLDSUN CONCRETE (SUZHOU) CO., LTD. and other three companies	6 3 3 4 4 4 4 4	$10,099,665 3,870,702 2,250,907 2,139,470 2,802,345 3,307,600 3,420,345 1,809,645	$156,000 3,584,000 884,000 108,000 1,270,200 1,270,200 1,270,200 1,270,200	$78,000 2,700,000 884,000 - 1,270,200 1,270,200 1,270,200 1,270,200	$6,500 1,950,000 300,000 - 264,464 194,005 178,106 263,996	$- - - - - - - -	0.39% 139.51% 78.55% - 226.63% 192.01% 185.68% 350.95%	$10,099,665 3,870,702 2,250,907 2,139,470 2,802,345 3,307,600 3,420,345 1,809,645	Y	Y Y	Y Y Y Y Y

Note 1: The parent company and its subsidiaries are coded as follows:

(1) The parent company is coded "0".
(2) The subsidiaries are coded consecutively beginning from "1" in the order presented in the table above.

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

(1) Having business relationship.
(2) The endorser/guarantor parent company owns directly more than 50% voting shares of the endorsed/guaranteed subsidiary.
(3) The endorser/guarantor parent company and its subsidiaries jointly own more than 50% voting shares of the endorsed/guaranteed company.
(4) The endorsed/guaranteed parent company directly or indirectly owns more than 50% voting shares of the endorser/guarantor subsidiary.
(5) Mutual guarantee of the trade as required by the construction contract.
(6) Due to joint venture, each shareholder provides endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.

Note 3: The procedure of endorsement is showed as the follows:

(1) For the Company, the endorsement / guarantee amount limit for a single entity that shall not exceed 50% of the Company's net asset value from the latest financial statement;

the total amount shall not exceed 50% of net asset value from the latest financial statement.

(2) REI SHIN CONSTRUCTIN CO., LTD and REIXIN ASSET MANAGEMENT INC. endorsement / guarantee amount limit for a single entity and total that shall not exceed double of the net asset value from the latest financial statement.

Other subsidiary, the endorsement / guarantee amount limit for a single entity and total that should not exceed 500% net assets value both from the latest financial statement.

Note 4: The maximum endorsements/guarantees amount current year.

Note 5: All endorsements/guarantees that have been approved by bank shall be calculated in ending balance.

Note 6: Please fill in the actual amount provided by the endorsers.

Note 7: Parent company endorsed/guaranteed for the subsidiaries, subsidiaries endorsed/guaranteed for the parent company, or endorsement/guarantee for entities in China shall fill in "Y" 。

110

ATTACHMENT 3 : Securities held as of December 31, 2020	ATTACHMENT 3 : Securities held as of December 31, 2020	ATTACHMENT 3 : Securities held as of December 31, 2020	ATTACHMENT 3 : Securities held as of December 31, 2020	(Unit:Foreign currency: thousands, NTD: thousands)	(Unit:Foreign currency: thousands, NTD: thousands)	(Unit:Foreign currency: thousands, NTD: thousands)	(Unit:Foreign currency: thousands, NTD: thousands)	(Unit:Foreign currency: thousands, NTD: thousands)
Names of companies held	Type and name of securities	Relationship with the Company	Financial statement account	December 31, 2020				Remark
				Units (thousand) / bonds / shares (thousand)	Carrying amount	Percentage of ownership (%)	Fair value/Net assets value
GOLDSUN BUILDING MATERIALS CO., LTD. KUNYUNG CONSTRUCTION & ENGINEERING CO., LTD REIXIN ASSET MANAGEMENT CO., LTD. TAIWAN BUILDING MATERIALS (HONG KONG) LIMITED GOLDSUN CONCRETE (CHANGSHU) CO., LTD.	Stock- TAIWAN CEMENT CORPORATION TAIWAN SECOM CO., LTD O-BANK TAIWAN AIRPORT SERVICE CO., LTD. GLOBAL SECURITIES FINANCE CORPORATION FUHWA VENTURE CAPITAL INC. OVERSEAS INVESTMENT & DEVELOPMENT CORP ANFENG SPRING ENTERPRISE CO., LTD. GUO CHANG MARITIME CO., LTD. CHINESE PRODUCTS PROMOTION CENTRE EVERTERMINAL CO., LTD. Stock- GOLDSUN BUILDING MATERIALS CO., LTD. TAIWAN CEMENT CORPORATION TAIWAN SECOM CO., LTD. Stock- GOLDSUN BUILDING MATERIALS CO., LTD. Capital- FUZHOU SANSHUN STONE MATERIAL CO., LTD. FUJIAN HENGZHONG SAND STONE CO., LTD. Fund - BOSERA FUNDS	Investor under the equity method Parent Company Parent Company	Financial assets at fair value through other comprehensive income, current Financial assets at fair value through other comprehensive income, non-current Financial assets at fair value through other comprehensive income, non-current Financial assets at fair value through other comprehensive income, non-current Financial assets at fair value through other comprehensive income, non-current Financial assets at fair value through other comprehensive income, non-current Financial assets at fair value through other comprehensive income, non-current Financial assets at fair value through other comprehensive income, non-current Financial assets at fair value through other comprehensive income, non-current Financial assets at fair value through other comprehensive income, non-current Financial assets at fair value through other comprehensive income, non-current Financial assets at fair value through other comprehensive income, non-current Financial assets at fair value through other comprehensive income, current Financial assets at fair value through 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 profit or loss, current	16,800,000 5,312,000 1,200,000 7,405,200 32,636 155,925 2,000,000 150,000 250,000 1,334 1,429,653 238,323 840,000 2,000,000 2,877,785 - - 227,151	$725,760 471,174 8,316 65,240 - 1,539 16,960 2,498 2,490 - 15,097 5,958 (Note) 36,288 177,400 71,945 (Note) 415,780 23,113 994	- 1% - 17% - 5% 2% 5% 10% - 1% - - - - 19% 19% -	$725,760 471,174 8,316 65,240 - 1,539 16,960 2,498 2,490 - 15,097 5,958 36,288 177,400 71,945 415,780 23,113 994	12,300 thousand shares provide for loan guarantee 4,200 thousand shares provide for loan guarantee 7,405 thousand shares provide for loan guarantee Included in treasury shares Included in treasury shares

Note: The Company resolved in its board of directors’ meeting on August 11, 2020 to implement a capital reduction in cash through the return of share proceeds to shareholders. The capital reduction ratio was 14.4189%.

111

Attachment 4:Related party transactions for purchases and sales amounts exceeding the lower of NT$100 million and 20 percent of capital stock for the year ended December 31, 2020

(Unit:Foreign currency: thousands, NTD: thousands)

Company	Related party	Relationship	Transactions	Transactions	Transactions	Transactions	Details of non-arm's length transaction	Details of non-arm's length transaction	Notes and accounts receivable (payable)	Notes and accounts receivable (payable)	Note
			Purchases (Sales)	Amount	Percentage of total purchases (sales)	Term	Unit Price	Term	Balance	Percentage of total receivables (payable)
GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. TAIPEI PORT TERMINAL COMPANY LIMITED GOLDSUN NIHON CEMENT CO., LTD.	GOLDSUN EXPRESS & LOGISTICS CO., LTD. TAIPEI PORT TERMINAL MATERIALS CO., LTD. GOLDSUN NIHON CEMENT CO., LTD. FULL MAX CORPORATION LIMITED GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD.	Associate Company Subsidiary Subsidiary Other related party Parent Company Parent Company	NOTE Operating Cost Operating Cost Operating Cost Operating Revenues Sales Revenue	$597,105 389,643 560,953 302,070 (389,643) (560,953)	NOTE 3% 5% 3% 79% 80%	Net 30 days Net 30 days Net 30 days Net 30 days Net 30 days Net 30 days	$- - - - - -	- - - - - -	$(57,249) (45,043) (100,772) - 45,043 100,772	(3.94)% (0.85)% (1.90)% - 90.70 % 82.14 %

Note : The Company provided the services of shipping cement to GOLDSUN BUILDING MATERIALS CO., LTD. and accounted to "Other operating income".

112

Attachment 5:Receivables from related parties with amounts exceeding the lower of NT$100 million and 20 percent of capital stock as of December 31, 2020

					(Unit:Foreign currency: thousands, NTD: thousands)	(Unit:Foreign currency: thousands, NTD: thousands)	(Unit:Foreign currency: thousands, NTD: thousands)	(Unit:Foreign currency: thousands, NTD: thousands)
Related Party	Company Name	Relationship	Ending Balance	Turnover Rate (%)	Overdue		Amounts Received in Subsequent	Allowance for Impairment
					Amount	Actions Taken
GOLDSUN NIHON CEMENT CO., LTD.	GOLDSUN BUILDING MATERIALS CO., LTD.	Parent Company	$100,772	-	$-	-	$100,772	$-

113

Attachment 6: Significant intercompany transactions between consolidated entities

(Unit:Foreign currency: thousands, NTD: thousands)

No.	Company	Counter-party	Relationship	Account	Amount	Term	As a percentage of total assets or revenues
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 2 3	Year of 2020 GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. KUNYUNG CONSTRUCTION & ENGINEERING CO., LTD KUNYUNG CONSTRUCTION & ENGINEERING CO., LTD RUEI SHIN CONSTRUCTIN CO., LTD TAIPEI PORT TERMINAL COMPANY LIMITED	WELLPOOL CO., LTD. WELLPOOL CO., LTD. REI SHIN CONSTRUCTIN CO., LTD REI SHIN CONSTRUCTIN CO., LTD REI SHIN CONSTRUCTIN CO., LTD REIXIN ASSET MANAGEMENT CO., LTD. REIXIN ASSET MANAGEMENT CO., LTD. GOLDSUN NIHON CEMENT CO., LTD. GOLDSUN NIHON CEMENT CO., LTD. TAIPEI PORT TERMINAL COMPANY LIMITED TAIPEI PORT TERMINAL COMPANY LIMITED TAIPEI PORT TERMINAL COMPANY LIMITED KUNYUNG CONSTRUCTION & ENGINEERING CO., LTD GIMPO MARINE CO., LTD. JIN SHUN MARITIME LTD. YUAN SHUN MARITIME LTD. GOYU BUILDING MATERIALS CO., LTD. GIMPO MARINE CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN BUILDING MATERIALS CO., LTD.	1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 3 3 2 2	Other operating income Accounts receivables Other operating income Other payables Lease liabilities Other operating income Lease liabilities Cost of goods sold Accounts payable Cost of goods sold Accounts payable Lease liabilities Lease liabilities Cost of goods sold Cost of goods sold Cost of goods sold Other receivables Other receivables Other operating income Other operating income	$46,092 19,223 30,000 380,000 95,578 12,051 28,557 560,953 100,772 389,643 45,043 85,618 14,814 54,566 64,348 48,009 10,001 110,017 32,535 21,975	(Note 4) (Note 4) (Note 4) Interest rate:0.95% By contract (Note 4) By contract (Note 4) (Note 4) (Note 4) (Note 4) By contract By contract (Note 4) (Note 4) (Note 4) Interest rate:1.53% Interest rate:1.45% (Note 4) (Note 4)	0.32% 0.07% 0.21% 2.62% 0.66% 0.04% 0.20% 3.87% 0.70% 2.69% 0.15% 0.59% 0.10% 0.38% 0.44% 0.33% 0.03% 0.37% 0.22% 0.15%

Note 1: Information about related party transactions should be stated. The numbers of each company are illustrated as follows:

(1) 0 is for the parent company.

(2) Each subsidiary is numbered from 1.

Note 2: The relationship between related parties are as follows:

(1) Parent company and subsidiary.

(2) Subsidiary and Parent company.

(3) Subsidiary and subsidiary.

Note 3: Transaction amount is stated as a ratio of total assets or total revenues. Ratios of assets or liabilities accounts are calculated as ending balance divided by total assets, and ratios of profit or loss accounts are calculated as accumulated amount for the year divided by total revenues.

Note 4: The Company's sales to related parties are handled according to the general sales conditions; its collection period is equivalent to ordinary customers.

Note 5: The important transaction of this form may be determined by the company according to the principle of materiality.

114

ATTACHMENT 7: Names, locations and related information of investee companies (Not including investment in Mainland China)

(Unit:Foreign currency: thousands, NTD: thousands)

Investor Company	Investee Company	Location	Main business and products	Original / investment amount	Original / investment amount	Investment as of December 31, 2020	Investment as of December 31, 2020	Investment as of December 31, 2020	Net income (loss) of investee company	Investment income (loss) recognized	Note
				Ending balance	Beginning balance	Number of shares	Percentage of ownership (%)	Book value
GOLDSUN BUILDING MATERIALS CO., LTD.	KUNYUNG CONSTRUCTION & ENGINEERING CO., LTD REI SHIN CONSTRUCTION CO., LTD WELLPOOL CO., LTD. EASE GREAT INVESTMENTS LTD. GOLDSUN INVESTMENT CO., LTD GOLDSUN NIHON CEMENT CO., LTD. TAIPEI PORT TERMINAL COMPANY LIMITED TAIWAN BUILDING MATERIALS (HONG KONG) LIMITED HWA YA DEVELOPMENT CO., LTD. GOLDSUN INNOVATIVE BUILDING MATERIALS CO., LTD. RAIXIN QUALITY PRODUCTS LTD.	Taipei, TW Taipei, TW Taipei, TW Samoa Taipei, TW Kaohsiung, TW Taipei, TW Hong Kong Taipei, TW Taipei, TW Taipei, TW	Construction of civil and architectural construction projects Real estate rental, sale and development Sales of calcium silicate board and other boards Investment and holding Investment Cement import and sale International trade, warehousing and tally packaging Investment Hotel operator Sales of ready-mixed concrete and cement products Upholstery and sales of furniture	$835,000 - 303,653 3,162,697 (USD 89,386) - 119,121 2,477,200 480,289 (USD15,436) 196,928 60,000 41,000	$835,000 - 300,754 5,816,892 (USD 178,462) 53,500 119,121 2,477,200 480,289 (USD 15,436) 196,928 60,000 41,000	30,000,000 800,000,000 18,280,389 89,386,266 - 11,460,000 250,000,000 116,686,664 15,714,108 6,000,000 1,116,111	100% 100% 51% 100% - 59% 100% 100% 31% 100% 11%	$374,846 1,587,216 537,851 4,411,437 - 163,413 2,492,257 439,862 161,447 12,582 4,821	$11,241 (15,139) 146,314 312,555 (142) 13,769 116,971 (174) 6,975 (7,139) (27,438)	$11,157 (15,139) 74,125 312,555 (142) 8,092 116,529 (174) 2,141 (7,139) (3,676)	Note2 15,000 thousand shares provide for loan guarantee Note5 Note 4 Associate

115

ATTACHMENT 7: Names, locations and related information of investee companies as of December 31, 2020 (Not including investment in Mainland China)


ATTACHMENT 7: Names, locations and related information of investee companies as of December 31, 2020(Not includinginvestment in Mainland China)				(Unit:Foreign currency: thousands, NTD: thousands)
Investor Company	Investee Company	Location	Main business and products	Original / investment amount		Investment as of December 31, 2020			Net income (loss) of investee	Investment income (loss) recognized	Note
				Ending balance	Beginning balance	Number of shares	Percentage of ownership (%)	Book value
GOLDSUN BUILDING MATERIALS CO., LTD. GOLDSUN INNOVATIVE BUILDING MATERIALS CO., LTD. WELLPOOL CO., LTD. EASE GREAT INVESTMENTS LTD.	JIN SHUN MARITIME LTD. YUAN SHUN MARITIME LTD. JING SHUN MARITIME LTD. FENG SHUN MARITIME LTD. GOYU BUILDING MATERIALS CO., LTD. GIMPO MARINE CO., LTD. REIXIN ASSET MANAGEMENT INC. LAKE VERNICIA DEVELOPMENT COMPANY RAIXIN QUALITY PRODUCTS LTD. GAPE-GOLDSUN CORPORATION GREAT SMART LTD. GOLDSUN INTERNATIONAL DEVELOPMENT CORP.	Hong Kong Hong Kong Hong Kong Hong Kong Chiayi, TW New Taipei City, TW Taipei, TW Taipei, TW Taipei, TW Taipei, TW Cayman Cayman	Shipping Shipping Shipping Shipping Sales of building materials Shipping Real estate rental, sale and development Leisure farme management Upholstery and sales of furniture Sales of calcium silicate board and other boards Investment and holding Investment and holding	$314,216 (USD 10,000) 466,588 (USD 15,150) 307,970 (USD 10,000) 192,481 (USD 6,250) 260,000 100,000 (Note2) 1,000 60,284 1,283 1,008,411 (USD 31,068) 1,875,333 (USD 57,100)	$314,216 (USD 10,000) 1,198,017 (USD 15,150) (Note1) (Note1) 182,000 100,000 - - 48,667 1,283 2,531,767 (USD 78,000) 1,874,333 (USD 57,100)	78,000,000 118,170,000 10,000,001 6,250,001 26,000,000 10,000,000 100,000,000 100,000 2,756,112 100,000 31,067,669 57,100,000	100% 100% 100% 100% 65% 100% 100% 100% 28% 100% 100% 100%	$124,706 416,076 251,141 194,717 240,134 94,651 1,053,650 866 11,906 1,469 1,073,729 (USD 37,701) 3,303,019 ############	$(15,460) 5,418 (11,371) 14,178 (12,967) 9,873 8,780 (134) (27,438) 8 176,377 139,401	$(15,460) 5,418 (11,371) 14,178 (8,145) 9,873 7,771 (134) - - - -	Note 3 Note 7 Associates Note 6

Note 1: YUAN SHUN MARITIME LTD. invested the entity in debt to equity swap.

Note 2: RUEI SHIN CONSTRUCION CO., LTD., a subsidiary, transferred part of itsindependently operated business to a newly incorporated company, REIXIN ASSETMANAGEMENT INC., that the Company own 100% share. The transferred business value is estimated 1,000,000 thousand. The Company obtained 100,000 thousand new shares issued by REIXIN ASSET MANAGEMENT INC. as consideration. The division reference date was January 1, 2020. Note 3: YUAN SHUN MARITIME LTD. implement a capital reduction in cash USD$2,370 thousand. The Company withdraw the cash returns USD$7,500 thousand and accounts receivable USD$16,250 thousand. Note 4: To simplify investment structure, strengthen efficiency the overall utilization of resource and enhance operational performance and competitiveness. Resolved by the Company’s Board of Directors on May 6, 2020, the Company has a merger with GOLDSUN INVESTMENT CO., LTD. After the merger, the Company is surviving company and GOLDSUN INVESTMENT CO., LTD. is dissolved company. The reference date of the merger was May 31, 2020. Note 5: The Board of Directors of EASE GREAT INVESTMENTS LTD. approved a proposal of cash capital reduction on February 5, 2020. The capital reduction amount was US$86,000 thousand, the Company completed the capital reduction US$86,000 thousand in 2020. The Board of Directors of EASE GREAT INVESTMENTS LTD. approved a proposal of cash capital reduction on September 28, 2020. The capital reduction amount was US$4,170 thousand, the Company completed the capital reduction US$3,076 thousand in 2020. Note 6: The Board of Directors of GREAT SMART LTD. approved a proposal of cash capital reduction on November 6, 2019. The capital reduction amount was US$78,041 thousand, the Company completed the capital reduction USD$34,300 thousand and US$43,741 thousand in 2019 and 2020, respectively. The Board of Directors of EASE GREAT INVESTMENTS LTD. approved a proposal of cash capital reduction on August 31, 2020. As of December 31, 2020, the registration of capital reduction was completed.

Note 7: The Company established a subsidiary, LAKE VERNICIA DEVELOPMENT COMPANY, on the third quarter of 2020 due to development various business. The total investment amount was NT$1,000 thousand.

116

ATTACHMENT 8: Investment in Mainland China as of December 31, 2020	ATTACHMENT 8: Investment in Mainland China as of December 31, 2020	ATTACHMENT 8: Investment in Mainland China as of December 31, 2020	ATTACHMENT 8: Investment in Mainland China as of December 31, 2020		(Unit:Foreign currency: thousands,NTD: thousands)	(Unit:Foreign currency: thousands,NTD: thousands)	(Unit:Foreign currency: thousands,NTD: thousands)	(Unit:Foreign currency: thousands,NTD: thousands)	(Unit:Foreign currency: thousands,NTD: thousands)	(Unit:Foreign currency: thousands,NTD: thousands)	(Unit:Foreign currency: thousands,NTD: thousands)	(Unit:Foreign currency: thousands,NTD: thousands)
Investee Company	Main business and products	Total amount of paid- in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2020	Investment flows		Accumulated outflow of investment from Taiwan as of December 31, 2020	Net income (loss) of investee Company	Percentage of ownership	Investment income (loss) recognized	Carrying value as of December 31, 2020	Accumulated inward remittance of earnings as of December 31, 2020
					Outflow	Inflow
GOLDSUN CONCRETE (SUZHOU) CO., LTD. GOLDSUN (CHANGSHU) CONCRETE CO., LTD. TAICANG PORT GOLDSUN CONCRETE CO., LTD. GOLDSUN CONCRETE (WUJIANG) CO., LTD. KUNSHAN GOLDSUN CONCRETE CO., LTD. GOLDSUN (SUZHOU) BUILDING MATERIALS CO., LTD. LIANYUAN CONCH CEMENT CO., LTD. FUZHOU SANSHUN STONE MATERIAL CO., LTD. FUJIAN HENGZHONG SAND STONE CO., LTD.(Note9) YANG JUNG LEI JIN BUILDING MATERIALS LTD.	Production and sales of ready-mixed concrete and cement products Production and sales of ready-mixed concrete and cement products Production and sales of ready-mixed concrete and cement products Production and sales of ready-mixed concrete and cement products Production and sales of ready-mixed concrete and cement products Production and sales of ready-mixed concrete and cement products Cement production and Sandstone processing Sandstone processing Sandstone processing	$402,217 (USD 11,882) 459,388 (USD 14,200) 198,678 (USD 5,960) 197,939 (USD 5,960) 131,864 (USD 4,000) 198,527 (USD 5,960) 2,383,120 (USD 74,800) 1,016,143 (USD 33,503) 134,790 (RMB 30,000) 465,000 (RMB 100,000)	(Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 2) (Note 3) (Note 3) (Note 4)	$402,217 (USD 11,882) 459,388 (USD 14,200) 198,678 (USD 5,960) 197,939 (USD 5,960) 131,864 (USD 4,000) 198,527 (USD 5,960) 376,549 (USD 10,800) 453,555 (USD 14,566) 24,777 (USD 810) -	$- - - - - - - - - -	$- - - - - - - - - -	$402,217 (USD 11,882) 459,388 (USD 14,200) 198,678 (USD 5,960) 197,939 (USD 5,960) 131,864 (USD 4,000) 198,527 (USD 5,960) 376,549 (USD 10,800) 453,555 (USD 14,566) 24,777 (USD 810) -	$3,483 48,560 5,510 41,943 (Note 6) 7,787 40,516 (Note 6) 695,337 - - (24,255)	100% 100% 100% 100% 100% 100% 20% 19% 19% -	$3,483 48,560 5,510 41,943 (Note 6) 7,787 40,516 (Note 6) 139,067 - - (7,276)	$427,894 560,469 226,121 661,520 (Note 6) 361,929 684,069 (Note 6) 724,912 415,780 (Note 5) 23,113 (Note 5) - (Note 4)	$- - - - - - 11,504 (Note 9) - - -

Accumulated investment in Mainland China as of December 31, 2020		Investment amounts authorized by Investment Commission, MOEA			Upper limit on investment
$3,468,955 (USD 105,540)		$3,093,068 (USD 108,605)			$12,798,226 (Note 10)

Note 10: The Company is based on the new regulations promulgated by the Ministry of Economic Affairs in the Republic of China in 2008. The calculation method for the mainland area is 60% of the net value or the combined net value, whichever is higher. 117

Attachment 9: Information of Major Shareholder as of December 31, 2020

(Unit:Share)

			(Unit:Share)
Shares/Name	Number of shares		Percentage of ownership (%)
	Ordinary Stock	Preferred stock
SHIN LAN ENTERPRISE INC. TAIWAN SECOM CO., LTD.	79,370,341 77,555,747	- -	6.72% 6.57%

118

AI assistant

GBM — Annual Report 2020

52130_rns_2020-11-10_19aa9bf1-b80d-45fb-bf22-9ffd67eca14a.pdf

GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS WITH REPORT OF INDEPENDENT AUDITORS

GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES

INDEX

REPRESENTATION LETTER

Independent Auditors’ Report Translated from Chinese

Opinion

Basis for Opinion

Key Audit Matters

Revenue Recognition

Other Matter – Making Reference to the Audits of Component Auditors

Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Others

Notice to Readers

English Translation of Consolidated Financial Statements Originally Issued in Chinese

GOLDSUN BUILDING MATERIALS CO., LTD. CONSOLIDATED BALANCE SHEETS December 31, 2020 and December 31, 2019 (Expressed in Thousands of New Taiwan Dollars)

English Translation of Consolidated Financial Statements Originally Issued in Chinese

GOLDSUN BUILDING MATERIALS CO., LTD. CONSOLIDATED BALANCE SHEETS December 31, 2020 and December 31, 2019 (Expressed in Thousands of New Taiwan Dollars)

English Translation of Consolidated Financial Statements Originally Issued in Chinese

GOLDSUN BUILDING MATERIALS CO., LTD.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

English Translation of Consolidated Financial Statements Originally Issued in Chinese

English Translation of Consolidated Financial Statements Originally Issued in Chinese

English Translation of Consolidated Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. History and organization

2. Date and procedures of authorization of financial statements for issue

3. Newly issued or revised standards and interpretations

Amendment to IFRS 1

Amendment to IFRS 9 Financial Instruments

Amendment to Illustrative Examples Accompanying IFRS 16 Leases

Amendment to IAS 41

4. Summary of Significant Accounting Policies

Preparation principle of consolidated financial statements

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Stated)

(4) Foreign currency transactions

Financial assets measured at amortized cost

Financial asset measured at fair value through other comprehensive income

Financial asset measured at fair value through profit or loss

D. Financial liabilities and equity

Classification between liabilities or equity

Equity instruments

Compound instruments

Financial liabilities

Financial liabilities at fair value through profit or loss

Financial liabilities at amortized cost

Derecognition of financial liabilities

(13) Property, plant and equipment

(14) Investment property

(15) Leases

Group as a lessee

Group as a lessor

(16) Intangible assets

Operating Concession

(17) Impairment of non-financial assets

(18) Provisions

Provision for decommissioning, restoration and rehabilitation costs

Maintenance warranties

(19) Treasury shares

(20) Revenue recognition

Sale of goods

(21) Borrowing costs

(22) Government grants

(23) Post-employment benefits

(24) Share-based payment transactions

(25) Income taxes

Current income tax

Deferred tax

(26) Business combinations and goodwill

5. Significant Accounting Judgments, Estimates and Assumptions

(1) Judgment

A. Investment properties

B. Operating lease commitment-Group as the lessor

(2) Estimates and assumptions

A. Fair value of financial instruments

B. Impairment of non-financial assets

C. Pension benefits

D. Accounts receivables-estimation of impairment loss

GBM Annual Report 2020