GBM - Audit Report / Information 2020

GOLDSUN BUILDING MATERIALS CO., LTD.

PARENT COMPANY ONLY

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.

INDEX

Items Cover Index Report of Independent Auditors Parent Company Only Balance Sheets Parent Company Only Statements of Comprehensive Income Parent Company Only Statements of Changes in Equity Parent Company Only Statements of Cash Flows Notes to Financial Statements	Pages
	1 2 3-6 7-8 9 10 11 12-128

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 parent company only balance sheets of GOLDSUN BUILDING MATERIALS CO., LTD. (the “Company”) as of December 31, 2020 and 2019, and the related parent company only statements of comprehensive income, changes in equity and cash flows for the years ended December 31, 2020 and 2019, and notes to the parent company only financial statements, including the summary of significant accounting policies (together “the parent company only financial statements”).

In our opinion, , based on our audits and the reports of other auditors (please refer to the Other Matter – Making Reference to the Audits of Component Auditors section of our report), the parent company only financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and its 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.

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 Parent Company Only Financial Statements section of our report. We are independent of the Company 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, 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 parent company only financial statements. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Revenue Recognition

Revenue from contracts with customers that recognized by the Company amounted to NT$14,277,915 thousand for the year ended December 31, 2020, and the main source of revenue is the sale of premixed concrete. 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.

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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 Company'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 4 and 6.

Other Matter – Making Reference to the Audits of Component Auditors

We did not audit the financial statements of certain associates, which statements reflected investments accounted for under the equity method of NT$986,640 thousand, representing 3% of the total assets as of December 31, 2020. The related shares of losses from the associates and joint ventures under the equity method amounted to NT$7,325 thousand, representing 0% of the net income/(loss) before income tax for the year ended December 31, 2020, and the related shares of other comprehensive loss from the associates and joint ventures under the equity method amounted to NT$0 thousand, representing 0% of the comprehensive loss 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 Parent Company Only Financial Statements

Management is responsible for the preparation and fair presentation of the parent company only financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of parent company only financial statements that are free from material misstatement, whether due to fraud or error.

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

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

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Auditor’s Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 parent company only 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 parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
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.
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. 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 parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the parent company only financial statements, including the accompanying notes, and whether the parent company only financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision and performance of the 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 the parent company only 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.

Yu, Chien-Ju

Hsu, Hsin-Min

Ernst & Young, Taiwan March 15, 2021

Notice to Readers

The accompanying financial statements are intended only to present the 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 financial statements are those generally accepted and applied in the Republic of China.

Accordingly, the accompanying parent company only 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 Financial Statements Originally Issued in Chinese

GOLDSUN BUILDING MATERIALS CO., LTD. PARENT COMPANY ONLY 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 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 Inventories, net Prepayments Total current assets Non-current assets Financial assets at fair value through other comprehensive income, 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 Total non-current assets Total assets	4 and 6 4,5,6 and 8 4,6 and 8 4,5 and 6 4,5 and 6 4,5,6 and 7 7 4,5,6 and 8 7 4,5,6 and 8 4,5,6 and 8 4,6,7 and 8 4,6 and 7 4,5,6 and 8 4 and 6 4,5 and 6 7 4,5 and 6	$477,485 725,760 103,663 1,045,496 4,247,656 22,587 18,745 21,535 622,164 322,847 7,607,938 583,314 12,561,673 4,402,375 576,779 2,871,794 14,072 737,903 40,483 27,892 21,377 21,837,662 $29,445,600	2 3 - 4 14 - - - 2 1 26 2 43 15 2 9 - 3 - - - 74 100	$1,187,454 689,216 106,630 899,115 4,230,172 17,575 37,773 34,376 404,808 443,731 8,050,850 869,625 15,093,310 4,191,993 628,107 2,903,814 15,374 438,048 1,397 53,349 45,659 24,240,676 $32,291,526	4 3 - 3 13 - - - 1 1 25 3 47 13 2 9 - 1 - - - 75 100

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

English Translation of Financial Statements Originally Issued in Chinese

GOLDSUN BUILDING MATERIALS CO., LTD. PARENT COMPANY ONLY 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 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 Long-term notes and bills payable Net defined benefit liabilities, non-current Guarantee deposits Total non-current liabilities Total liabilities Equity attributable to the parent Common stock Additional paid-in capital Retained earnings Legal reserve Special reserve Unappropriated earnings Total Retained earnings Other components of equity Treasury stock Total equity Total liabilities and equity	4,6 and 8 6 and 8 7 7 4,5 and 6 4,6 and 7 4,6 and 8 4,6 and 8 4 and 6 4,5 and 6 4,6 and 7 6 and 8 4,5 and 6 7 4 and 6 6 6 6 6	$1,300,000 - 1,229,766 223,350 647,972 380,000 329,070 122,685 111,624 18,081 300,000 4,662,548 2,200,000 6,900 3,489 435,508 1,748,296 161,373 28,157 4,583,723 9,246,271 11,800,000 1,178,554 1,706,814 1,874,430 3,742,037 7,323,281 (97,717) (4,789) 20,199,329 $29,445,600	5 - 4 1 2 2 1 - - - 1 16 7 - - 1 6 1 - 15 31 40 4 6 6 13 25 - - 69 100	$2,910,000 2,608,730 1,272,567 163,436 580,660 890,000 19,170 97,310 123,055 7,557 200,000 8,872,485 2,300,000 4,800 738 496,045 - 206,029 27,080 3,034,692 11,907,177 13,850,003 1,177,219 1,596,648 1,874,430 1,881,076 5,352,154 15,012 (10,039) 20,384,349 $32,291,526	9 8 4 - 2 3 - - - - 1 27 7 - - 2 - 1 - 10 37 43 4 5 5 6 16 - - 63 100

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

English Translation of Financial Statements Originally Issued in Chinese

GOLDSUN BUILDING MATERIALS CO., LTD.

PARENT COMPANY ONLY 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 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 Share of other comprehensive (loss) income of subsidiaries and associates- may not be reclassified subsequently to profit or loss Income tax related to items that will not be reclassified Items that may be reclassified subsequently to profit or loss Share of other comprehensive (loss) income of subsidiaries and associates- may be reclassified subsequently to profit or loss Total other comprehensive (loss) income, net of tax Total comprehensive income 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 and 6 7 4,5 and 6 4 and 6 6	$14,494,761 (11,979,077) 2,515,684 (105,653) (351,434) (8,930) (46,800) (512,817) 2,002,867 7,196 116,526 (48,790) (72,055) 500,459 503,336 2,506,203 (33,276) 2,472,927 1,752 (146,497) 296 (350) (54,895) (199,694) $2,273,233 $1.90 $1.90	100 (83) 17 (1) (2) - - (3) 14 - 1 - - 3 4 17 - 17 - (1) - - - (1) 16	$12,728,434 (11,707,715) 1,020,719 (138,045) (374,442) (9,822) (49,129) (571,438) 449,281 11,906 97,970 269,644 (103,725) 397,638 673,433 1,122,714 (21,055) 1,101,659 (2,854) 222,803 441 571 (60,374) 160,587 $1,262,246 $0.80 $0.80	100 (92) 8 (1) (3) - - (4) 4 - 1 2 (1) 3 5 9 - 9 - 2 - - (1) 1 10

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

English Translation of Financial Statements Originally Issued in Chinese

GOLDSUN BUILDING MATERIALS CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY For the years ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

	Common Stock	Additional Paid-in Capital		Retained Earnings		Other Components of Equity	Other Components of Equity	Treasury Stock	Total Equity
			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 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 Disposal of equity instruments measured at fair value through other comprehensive income Balance as of December 31, 2020	$13,850,003 - - - - - - - - - $13,850,003 $13,850,003 - - - - - - (1,988,093) - (61,910) - - - $11,800,000	$1,177,912 - - 11 - -	$1,545,164 51,484 - - - - - - - - $1,596,648 $1,596,648 110,166 - - - - - - - - - - - $1,706,814	$1,874,430 - - - - - - - - - $1,874,430 $1,874,430 - - - - - - - - - - - - $1,874,430	$1,183,489 (51,484) (346,250) - 1,101,659 (1,842) 1,099,817 - (13,249) 8,753 $1,881,076 $1,881,076 (110,166) (413,643) - 2,472,927 1,698 2,474,625 - - - - (1,192) (88,663) $3,742,037	$(436,859) - - - - (60,374) (60,374) - - - $(497,233) $(497,233) - - - - (54,895) (54,895) - - - - - - $(552,128)	$298,195 - - - - 222,803 222,803 - - (8,753) $512,245 $512,245 - - - - (146,497) (146,497) - - - - - 88,663 $454,411	$(10,039) - - - - - - - - - $(10,039) $(10,039) - - - - - - 5,250 (61,841) 61,841 - - - $(4,789)	$19,482,295 - (346,250) 11 1,101,659 160,587
		-							1,262,246
		910 (1,614) -							910 (14,863) -
		$1,177,219							$20,384,349
		$1,177,219 - - 179 - -							$20,384,349 - (413,643) 179 2,472,927 (199,694)
		-							2,273,233
		- - 69 1,092 (5) -							(1,982,843) (61,841) - 1,092 (1,197) -
		$1,178,554							$20,199,329

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

English Translation of Financial Statements Originally Issued in Chinese

GOLDSUN BUILDING MATERIALS CO., LTD. PARENT COMPANY ONLY 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 Expected credit losses Interest expense Interest revenue Dividend income Share of gain of subsidiaries and associates Gain on disposal of property, plant and equipment Loss (gain) on disposal of investment property (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 Long-term receivable Notes payable Accounts payable Accounts payable - related parties Other payables Other current liabilities Advanced receipts Net defined liabilities, non-current Cash inflow (outflow) generated from operations Interest received Interest paid Income tax paid Net cash provided by (used in) operating activities Cash flows from investing activities: Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Capital deducted by cash of financial assets at fair value through other comprehensive income Decrease in financial assets at amortized cost Acquisition of subsidiaries (net of cash acquired) Acquisition of investments accounted for under the equity method Cash returns from capital reduction of subsidiaries Proceeds from disposal of property, plant and equipment Acquisition of property, plant and equipment Proceeds from disposal of investment property Acquisition of investment property Acquisition of intangible assets (Increase) decrease in prepayment for equipment (Increase) decrease in refundable deposits Dividends received Net cash provided by investing activities Cash flows from financing activities: (Decrease) increase in short-term loans (Decrease) increase in short-term notes and bills payable Decrease in other payables - related parties Decrease in bonds 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 Donated surplus Cash dividends paid Net cash (used in) provided by financing activities Net (decrease) increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year	$2,506,203 2,506,203 309,366 6,703 46,800 72,055 (7,196) (81,863) (500,459) (2,909) 12,333 (2,132) (146,785) 3,536 (5,012) 19,028 12,841 (217,356) 134,455 (43,134) - (42,801) 59,914 68,598 (15,742) 10,524 (43,254) 2,153,713 7,196 (73,341) (16,169) 2,071,399 (109,609) 214,080 7,722 2,967 18,327 (81,899) 2,885,172 7,651 (284,082) - (5,849) (5,276) (126,704) 25,457 234,192 2,782,149 (1,610,000) (2,608,730) (510,000) - 5,600,000 (5,600,000) 1,748,296 1,077 (120,552) (1,988,093) (61,841) (31) (413,643) (5,563,517) (709,969) 1,187,454 $477,485	$1,122,714 1,122,714 290,723 6,725 49,129 103,725 (11,906) (77,415) (397,639) (17,832) (297,874) 38 (1,473) (667,034) 8,956 (35,366) (6,442) (9,728) (71,770) (93,688) (1,089) (252,255) (27,731) 49,390 29,085 (189,647) (24,043) (522,447) 11,906 (105,468) - (616,009) (30,920) 122,630 2,378 138,980 - (28,128) 239,278 19,206 (181,090) 617,688 (195) (8,331) 6,318 (34,376) 339,383 1,202,821 210,000 880,905 (485,000) (1,000,000) 5,400,000 (4,500,000) - (4,928) (130,941) - - (31) (346,250) 23,755 610,567 576,887 $1,187,454

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

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS For the Years Ended December 31, 2020 and 2019

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

1. History and organization

GOLDSUN BUILDING MATERIALS CO., LTD. (“the Company”) was incorporated under the laws of the Republic of China (“R.O.C.”) in November 1954. The Company is engaged mainly in the production and sales pre-mixed concrete and building rental. In March 1978, the Company listed its shares of stock on the Taiwan Stock Exchange (“TWSE”). The Company’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 parent company only financial statements of the Company for the years ended December 31, 2020 and 2019 were authorized for issue by the Board of Directors 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 Company 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 Company.

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

The Company 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 Company 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.

(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 Company 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)	January 1, 2021

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(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 January 1, 2021 have no material impact on the Company.

(3) Standards or interpretations issued, revised or amended, by IASB which are not endorsed by FSC, and not yet adopted by the Company 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 Joint Ventures	To be determined by IASB
b	IFRS 17 “Insurance Contracts”	January1,2023
c	Classification of Liabilities as Current or Non-current – Amendments to IAS 1	January1,2023
d	Narrow-scope amendments of IFRS, including Amendments to IFRS 3, Amendments to IAS 16,Amendments to IAS 37 and the Annual Improvements	January 1, 2022
e	Disclosure Initiative - AccountingPolicies – Amendments to IAS 1	January1,2023
f	Definition of AccountingEstimates – Amendments to IAS 8	January1,2023

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(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 company of insurance contracts at the total of the fulfilment cash flows and the contractual service margin. The fulfilment cash flows comprise of the following:

(1) estimates of future cash flows;
(2) 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
(3) a risk adjustment for non-financial risk.

The carrying amount of a company 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

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

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 Company’s financial statements were authorized for issue, the local effective dates are to be determined by FSC. As the Company is still currently determining the potential impact of the standards and interpretations listed, it is not practicable to estimate their impact on the Company at this point in time.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD. NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

4. Summary of Significant Accounting Policies

(1) Statement of compliance

The parent company only financial statements of the Company 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”).

(2) Basis of preparation

The Company prepared parent company only financial statements in accordance with Article 21 of the Regulations, which provided that the profit or loss and other comprehensive income for the period presented in the parent company only financial statements shall be the same as the profit or loss and other comprehensive income attributable to stockholders of the parent presented in the consolidated financial statements for the period, and the total equity presented in the parent company only financial statements shall be the same as the equity attributable to the parent company presented in the consolidated financial statements. Therefore, the Company accounted for its investments in subsidiaries using equity method and, accordingly, made necessary adjustments.

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

(3) Foreign currency transactions

The Company’s parent company only financial statements are presented in NT$, which is also the Company’s functional currency.

Transactions in foreign currencies are initially recorded by the Company at its functional currency rates prevailing at the date of the transaction. Mon 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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 9 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.

(4) Translation of financial statements in foreign currency

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 following partial disposals are accounted for as disposals:

(a) when the partial disposal involves the loss of control of a subsidiary that includes a foreign operation; and
(b) 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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.

(5) Current and non-current distinction

An asset is classified as current when:

A. The Company expects to realize the asset, or intends to sell or consume it, in its normal operating cycle
B. The Company holds the asset primarily for the purpose of trading
C. The Company 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 Company expects to settle the liability in its normal operating cycle
B. The Company 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 Company 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

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

(6) 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).

(7) Financial instruments

Financial assets and financial liabilities are recognized when the Company 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 Company accounts for regular way purchase or sales of financial assets on the delivery date.

The Company 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

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

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 Company 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

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

The Company 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 Company 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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 Company 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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. Its 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).

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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 Company of financial liabilities or financial assets and financial liabilities 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 group 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 noncash assets transferred or liabilities assumed, is recognized in profit or loss.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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.

(8) 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 Company.

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 Company 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.

(9) Inventories

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

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

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

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.

(10) Investments accounted for under the equity method

The investment in a subsidiary is according to “Rule Governing the Preparation of Financial Statements 21 by Securities Issuers”. Therefore, profit for the year and other comprehensive income for the year reported in the parent company only financial statements, shall be equal to profit for the year and other comprehensive income attributable to owners of the parent reported in the consolidated financial statements, equity reported in the parent company only financial statements shall be equal to equity attributable to owners of parent reported in the consolidated financial statements. According to IFRS 10 – Consolidated Financial Statements , agreeing with the amount of net income, other comprehensive income and equity attributable to shareholders of the parent in the consolidated financial statements, the differences of the accounting treatment between the parent company only basis and the consolidated basis are adjusted under the heading of investments accounted for using equity method, share of profits of subsidiaries and associates and share of other comprehensive income of subsidiaries and associates in the parent company only financial statements.

The Company’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 Company has significant influence.

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

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

When changes in the net assets of an associate occur and not those that are recognized in profit or loss or other comprehensive income and do not affects the Company’s percentage of ownership interests in the associate, the Company 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 on a prorate basis.

When the associate issues new stock, and the Company’s interest in an associate is reduced or increased as the Company fails to acquire shares newly issued in the associate proportionately to its original ownership interest, the increase or decrease in the interest in the associate is recognized in Additional Paid in Capital and Investment accounted for using the equity method. When the interest in the associate 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 Company disposes the associate.

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

The Company determines at each reporting date whether there is any objective evidence that the investment in the associate is impaired in accordance with IAS 39 Financial Instruments: Recognition and Measurement . If this is the case the Company calculates the amount of impairment as the difference between the recoverable amount of the associate 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 Company estimates:

A. Its share of the present value of the estimated future cash flows expected to be generated by the associate, 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 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 .

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Upon loss of significant influence over the associate, the Company measures and recognizes any retaining investment at its fair value. Any difference between the carrying amount of the associate upon loss of significant influence and the fair value of the retaining investment and proceeds from disposal is recognized in profit or loss.

For investments of joint control units except for assets held for sale, the company also adopted equity method. Joint control unit means that the Company has joint control and involves in foundation of company, partnership, or other units.

(11) 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 Company 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
Right-of-use assets	2~15 years
Other equipment	3~5 years
Lease improvement	2~20 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(12) Investment property

The Company’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 Company 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.

The Company transfers to or from investment properties when there is a change in use for these assets.

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.

(13) Leases

The Company 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 Company 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

For a contract that is, or contains, a lease, the Company 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 Company 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 standalone price of the non-lease components. The relative stand-alone price of lease and nonlease components shall be determined on the basis of the price the lessor, or a similar supplier, would charge the Company for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the Company estimates the stand-alone price, maximizing the use of observable information.

Company as a lessee

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

At the commencement date, the Company 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 Company 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 Company 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

After the commencement date, the Company measures the lease liability on an amortized 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 Company measures the right-of-use asset at cost. Cost of right-of-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 Company measures the right-ofuse asset at cost less any accumulated depreciation and any accumulated impairment losses. That is, the Company measures the right-of-use applying a cost model.

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

The Company 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 Company accounted for as short-term leases or leases of lowvalue assets, the Company presents right-of-use assets and lease liabilities in the balance sheet and separately presents lease-related interest expense and depreciation charge in the statement’s comprehensive income.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

For short-term leases or leases of low-value assets, the Company 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.

Company as a lessor

At inception of a contract, the Company 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 Company 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 Company allocates the consideration in the contract applying IFRS 15.

The Company 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.

(14) 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 finite. 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 are 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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.

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

Useful lives Amortization method used	Computer software
	Finite Amortized on a straight- line basis over the estimated useful life (3~5 years)

Internally generated or acquired Acquired

(15) Impairment of non-financial assets

The Company 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 Company 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 Company 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 Company 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(16) Provisions

Provisions are recognized when the Company 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 Company 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.

(17) 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.

(18) Revenue recognition

The Company’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 Company 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 Company is pre-mixed concrete and cement. Revenue are recognized based on the consideration stated in the contract.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The Company 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 Company’s sale of goods is from 90 to 120 days. For most of the contracts, when the Company 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 Company 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 account’s receivable is the contract between the Company 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 Company 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 Company is obliged to undertake the subsequent transfer of the goods and is therefore recognized as a contract liability.

(19) 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.

(20) 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 Company 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

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

(21) Post-employment benefits

All regular employees of the Company 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 Company and its domestic subsidiaries. Therefore, fund assets are not included in the Company’s parent company only financial statements.

For the defined contribution plan, the Company 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 Company 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 Company 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.

(22) 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 income tax for undistributed retained earnings is recognized as income tax expense in the subsequent year when the distribution proposal is approved by the Shareholders’ meeting.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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 Company 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

5. Significant Accounting Judgments, Estimates and Assumptions

The preparation of the Company’s parent company only 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 Company’s accounting policies, management made the following judgments, which have the most significant effect on the amounts recognized in the parent company only financial statements:

A. Investment properties

Certain properties of the Company 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 Company 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 - Company as the lessor

The Company has entered into commercial property leases on its investment property portfolio. The Company 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 Company does not have majority of the voting rights in certain subsidiaries. However, after taking into consideration factors such as absolute size of the Company’s holding, relative size of the other shareholdings, how widely spread are the remaining shareholders, contractual arrangements between shareholders, potential voting rights, etc., the Company 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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 Company 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. 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 Company 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 Company company's domicile.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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 Company as of December 31, 2020.

E. Accounts receivables–estimation of impairment loss

The Company 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.

6. Contents of Significant Accounts

(1) Cash and cash equivalents

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,
	2020	2019
	$4,590 296,215 5,475 171,205	$4,590 872,696 239,232 70,936
	$477,485	$1,187,454

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

(2) 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 December31,	As of December31,
	2020	2019
	$1,205,250 103,824	$1,316,165 242,676
	$1,309,074	$1,558,841
	$725,760 583,314	$689,216 869,625
	$1,309,074	$1,558,841

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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

In consideration of the Company’s investment strategy, the Company 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:

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,	For the years ended December 31,
	2020	2019
	$214,080 (88,663)	$122,630 8,753

(3) Financial assets measured at amortized cost

Time deposit	As of December 31,	As of December 31,
	2020	2019
	$103,663	$106,630

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

(4) Notes receivable

Notes receivables arising from operating activities Less: loss allowance Total	As of December 31,	As of December 31,
	2020	2019
	$1,046,358 (862)	$899,573 (458)
	$1,045,496	$899,115

Notes receivable were not pledged.

The Company adopted IFRS 9 for impairment assessment. Please refer to Note 6(19) for more details on loss allowance and Note 12 for details on credit risk.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(5) Accounts receivable, accounts receivable from related parties, and long-term receivables

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
	$4,287,905 (40,249)	$4,299,431 (69,259)
	4,247,656	4,230,172
	22,587 -	17,575 -
	22,587	17,575
	$4,270,243	$4,247,747

Long-term receivable

Long-term receivable
Overdue receivables Less: loss allowance Total	As of December 31,
	2020	2019
	$106,883 (85,506)	$167,896 (122,237)
	$21,377	$45,659

Accounts receivable were not pledged.

Accounts receivable are generally on 90~120 day terms. The total carrying amount as of December 31, 2020 and 2019 were NT$4,417,375 thousand and NT$4,484,902 thousand, respectively. Please refer to Note 6(19) 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.

(6) Inventories

Raw materials Building for sale Land of construction Total	As of December 31,	As of December 31,
	2020	2019
	$331,924 79,872 210,368	$114,568 79,872 210,368
	$622,164	$404,808

The cost of inventories recognized in expenses amounted to NT$9,592,831 thousand and NT$9,579,000 thousand for the years ended December 31, 2020 and 2019, respectively.

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

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(7) Investments accounted for under the equity method

	As of December 31,	As of December 31,	As of December 31,	As of December 31,
	2020		2019
Investees	Carrying	Percentage of	Carrying	Percentage of
	amount	ownership (%)	amount	ownership (%)
Investments in subsidiaries:
RUEI SHIN CONSTRUCTIN CO., LTD	$1,587,216	100%	$2,642,376	100%
GOLDSUN INVESTMENT CO., LTD. (Note 1)	-	-	29,489	100%

WELLPOOL CO., LTD.	537,851	51%	534,642	51%
GOLDSUN NIHON CEMENT CO., LTD.	163,413	59%	166,781	59%
KUNYUNG CONSTRUCTION & ENGINEERING CO., LTD	374,846	100%	374,383	100%

EASE GREAT INVESTMENT LTD.	4,411,437	100%	6,793,332	100%
HUA YA DEVELOPMENT CO., LTD.	161,447	31%	159,307	31%
TAIPEI PORT TERMINAL COMPANY LIMITED (Note)	2,492,257	100%	2,375,728	100%

JIN SHUN MARITIME LIMITED	124,706	100%	146,954	100%
YUAN SHUN MARITIME LIMITED	416,076	100%	1,144,520	100%
JING SHUN MARITIME LIMITED	251,141	100%	(23,899)	100%
FENG SUN MARITIME LIMITED	194,717	100%	3,217	100%
TAIWAN BUILDING MATERIALS (HONG KONG) LMITED	439,862	100%	463,204	100%

GOLDSUN INNOVATIVE BUILDING MATERIALS CO., LTD.	12,582	100%	21,739	100%

GOYU BUILDING MATERIALS CO., LTD	240,134	65%	170,279	65%
GIMPO MARINE CO., LTD.	94,651	100%	84,779	100%
REIXIN ASSET MANAGEMENT INC. (Note 2)	1,053,650	100%	-	-

LAKE VERNICIA DEVELOPMENT COMPANY(Note 3)	866	100%	-	-

Subtotal	12,556,852		15,086,831

Investments in associates:
RAIXIN QUALITY PRODUCTS LTD. (Note 4)	4,821	11%	6,479	16%

Total	$12,561,673		$15,093,310

Note1: 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Note2: 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.
Note3: 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.
Note4: RAIXIN QUALITY PRODUCTS LTD. held a capital injection in 2020. The Company didn’t subscribe to the shares in proportion to the holding percentage and thus the Company’s holding percentage decreased to 11%.
A. Investments in subsidiaries

Investments in subsidiaries was accounted for investment accounted for under equity method when preparing the parent company only financial statements.

Please refer to Note 8 for more details on Investments in subsidiaries under pledge.

B. Investments in associates

Investment in the associate has not a quoted market price as of December 31, 2020 and 2019.

No investments in associates were pledged.

The summarized financial information of the associate is as follows:

Loss from continuing operations Other comprehensive income (post-tax) Total comprehensive income	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$(3,676) -	$(5,679) -
	$(3,676)	$(5,679)

The associates had no contingent liabilities or capital commitments and weren’t pledged as at December 31, 2020 and 2019.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(8) Property, plant and equipment

Land	Buildings	Machinery and equipment	Transportation equipment	Lease improvement	Construction in progress and equipment awaiting examination	Other equipment	Total
$2,444,786 55,036 - 13,800	$1,107,712 17,806 (11,610) 16,728	$1,738,237 55,655 (35,942) 11,280	$962,397 93,889 (126,715) 74,166	$130,257 4,879 (2,201) 1,681	$727,888 53,872 - (27,696)	$111,100 2,945 (24,230) (77)	$7,222,377 284,082 (200,698) 89,882
$2,513,622	$1,130,636	$1,769,230	$1,003,737	$134,616	$754,064	$89,738	$7,395,643
$2,933,661 - (431) (488,444)	$1,092,365 7,061 (3,335) 11,621	$1,720,171 49,327 (34,911) 3,650	$1,006,089 39,762 (83,454) -	$129,045 1,642 (430) -	$230,705 81,174 - 416,009	$109,781 2,124 (1,554) 749	$7,221,817 181,090 (124,115) (56,415)
$2,444,786	$1,107,712	$1,738,237	$962,397	$130,257	$727,888	$111,100	$7,222,377
$- - - -	$666,061 34,725 (11,610) -	$1,448,262 54,474 (35,264) 181	$705,212 54,761 (122,651) -	$114,626 8,269 (2,201) -	$- - - -	$94,914 6,611 (24,230) (181)	$3,029,075 158,840 (195,956) -
$-	$689,176	$1,467,653	$637,322	$120,694	$-	$77,114	$2,991,959
$- - - -	$637,364 32,032 (3,335) -	$1,424,111 48,700 (34,549) -	$740,448 47,655 (82,891) -	$100,689 14,367 (430) -	$- - - -	$88,781 7,444 (1,536) 225	$3,001,393 150,198 (122,741) 225
$-	$666,061	$1,448,262	$705,212	$114,626	$-	$94,914	$3,029,075
$- -	$322 -	$987 -	$- -	$- -	$- -	$- -	$1,309 -
$-	$322	$987	$-	$-	$-	$-	$1,309
$- -	$322 -	$987 -	$- -	$- -	$- -	$- -	$1,309 -
$-	$322	$987	$-	$-	$-	$-	$1,309
$2,513,622	$441,138	$300,590	$366,415	$13,922	$754,064	$12,624	$4,402,375
$2,444,786	$441,329	$288,988	$257,185	$15,631	$727,888	$16,186	$4,191,993

The major components of the buildings are main building structure and pre-mixed equipment, which are depreciated 55 years or 5~ 20 years.

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

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(9) Investment property

Investment property
Land Cost: As of January 1, 2020 $2,524,402 Additions from acquisitions 5,169 Disposals - As of December 31, 2020 $2,529,571 As of January 1, 2019 $2,554,416 Additions from acquisitions - Disposals (84,815) Transfers 54,801 As of December 31, 2019 $2,524,402 Depreciation: As of January 1, 2020 $- Depreciation - Disposals - As of December 31, 2020 $- As of January 1, 2019 $- Depreciation - Disposals - As of December 31, 2019 $- Impairment: As of January 1, 2020 $- Impairment - As of December 31, 2020 $- As of January 1, 2019 $- Impairment - As of December 31, 2019 $- Net carrying amount as of: December 31, 2020 $2,529,571 December 31, 2019 $2,524,402 Rental income from investment property Less`：`Direct operating expense generated from rental income of investment property Total	Land	Buildings	Total
	$2,524,402 5,169 -	$1,221,689 680 (33,615)	$3,746,091 5,849 (33,615)
	$2,529,571	$1,188,754	$3,718,325
	$2,554,416 - (84,815) 54,801	$1,629,177 195 (408,902) 1,219	$4,183,593 195 (493,717) 56,020
	$2,524,402	$1,221,689	$3,746,091
	$- - -	$834,204 25,536 (21,282)	$834,204 25,536 (21,282)
	$-	$838,458	$838,458
	$- - -	$982,458 25,649 (173,903)	$982,458 25,649 (173,903)
	$-	$834,204	$834,204
	$- -	$8,073 -	$8,073 -
	$-	$8,073	$8,073
	$- -	$8,073 -	$8,073 -
	$-	$8,073	$8,073
	$2,529,571	$342,223	$2,871,794
	$2,524,402	$379,412	$2,903,814
		For the years ended December31,
		2020	2019
		$69,896 (66,568)	$78,089 (74,112)
		$3,328	$3,977

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

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The fair value of investment properties was NT$9,288,527 thousand as of December 31, 2020. The fair value NT$9,288,527 thousand hasn’t been determined based on valuations performed by an independent valuer. The valuation method used are comparison approach and income approach. 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$9,237,919 thousand as of December 31, 2019. The fair value NT$5,321,131 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$3,916,788 thousand was assessed by the Company. 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.

(10) Intangible assets

Cost: Beginning Balance Addition-acquired separately Disposals Transfers Ending Balance Amortization: Beginning Balance Amortization Disposals Transfers Ending Balance Net carrying amount as of: Ending Balance	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$33,711 5,276 - 125	$33,834 8,331 (7,704) (750)
	$39,112	$33,711
	$18,337 6,703 - -	$19,541 6,725 (7,704) (225)
	$25,040	$18,337
	$14,072	$15,374

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Recognized as amortized amount of intangible assets are as follows.

Operating costs Operating expenses	2020	2019
	$600	$670
	$6,103	$6,055

(11) Short-term loans

Unsecured bank loans Secured bank loans Total Interest rates Unsecured bank loans Secured bank loans	As of December 31,	As of December 31,
	2020	2019
	$300,000 1,000,000	$1,646,000 1,264,000
	$1,300,000	$2,910,000
	0.85%~0.88% 0.85%~0.88%	1.000~1.070% 1.000~1.070%

The Company’s unused credits amount (included short-term and long-term loans) to NT$8,960,549 thousand and NT$5,842,000 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.

(12) 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	$- -	$2,610,000 (1,270)
	$-	$2,608,730
	-	0.56~0.87%

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.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(13) Long-term loans

Details of long-term loans are as follows:

Lenders	As of December 31,2020	Maturitydate and terms of repayment
Secured Long-term Loan from Bank of KGI Unsecured Long-term Loan from Bank of KGI Secured Long-term Loan from O-bank Secured Long-term Loan from Bank of Taiwan Unsecured Long-term Loan from Bank of Taiwan Secured Long-term Loan from Bank of Taiwan Unsecured Long-term Loan from Bank of Taiwan Subtotal Less: current portion Total Interest rates	$220,000 380,000 200,000 450,000 450,000 400,000 400,000	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. 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, 2019, principal is repaid in 10 half- yearly payments, the 1ndto 4ndpayments will be NTD$25,000 thousand, 5ndto 8ndpayments will be NTD$50,000 thousand and 9ndto 10ndpayments will be NTD$100,000 thousand; interest paid every month. Effective December 25, 2019, principal is repaid in 10 half- yearly payments, the 1ndto 4ndpayments will be NTD$25,000 thousand, 5ndto 8ndpayments will be NTD$50,000 thousand and 9ndto 10ndpayments will be NTD$100,000 thousand; interest paid every month. Effective December 25, 2018, principal is repaid in 10 half- yearly payments, the 1ndto 4ndpayments will be NTD$25,000 thousand, 5ndto 8ndpayments will be NTD$50,000 thousand and 9ndto 10ndpayments will be NTD$100,000 thousand; interest paid every month. Effective December 25, 2018, principal is repaid in 10 half- yearly payments, the 1ndto 4ndpayments will be NTD$25,000 thousand, 5ndto 8ndpayments will be NTD$50,000 thousand and 9ndto 10ndpayments will be NTD$100,000 thousand; interest paid every month.
	2,500,000 (300,000)
	$2,200,000
	0.8871%~1.13%

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Lenders	As of December 31,2019	Maturitydate and terms of repayment
Secured Long-term Loan from Bank of KGI Unsecured Long-term Loan from Bank of KGI Secured Long-term Loan from Bank of Taiwan Unsecured Long-term Loan from Bank of Taiwan Secured Long-term Loan from Bank of Taiwan Unsecured Long-term Loan from Bank of Taiwan Subtotal Less: current portion Total Interest rates	$220,000 380,000 500,000 500,000 450,000 450,000	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, 2017, principal is repaid in 10 half- yearly payments, the 1ndto 4ndpayments will be NTD$25,000 thousand, 5ndto 8ndpayments will be NTD$50,000 thousand and 9ndto 10ndpayments will be NTD$100,000 thousand; interest paid every month. Effective December 25, 2019, principal is repaid in 10 half- yearly payments, the 1ndto 4ndpayments will be NTD$25,000 thousand, 5ndto 8ndpayments will be NTD$50,000 thousand and 9ndto 10ndpayments will be NTD$100,000 thousand; interest paid every month. Effective December 25, 2018, principal is repaid in 10 half- yearly payments, the 1ndto 4ndpayments will be NTD$25,000 thousand, 5ndto 8ndpayments will be NTD$50,000 thousand and 9ndto 10ndpayments will be NTD$100,000 thousand; interest paid every month. Effective December 25, 2018, principal is repaid in 10 half- yearly payments, the 1ndto 4ndpayments will be NTD$25,000 thousand, 5ndto 8ndpayments will be NTD$50,000 thousand and 9ndto 10ndpayments will be NTD$100,000 thousand; interest paid every month.
	2,500,000 (200,000)
	$2,300,000
	1.05%~1.40%

The Company’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(11).

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

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(14) Long-term notes and bills payable

Guaranteed by bank Less`：`Unamortised discount Net Interest rates	109.12.31	108.12.31
	$1,750,000 (1,704)	$- -
	$1,748,296	$-
	0.31%~0.34%	-

The long-term notes and bills payable is 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 amount of unused financing facilities was 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.

(15) Post-employment benefits

Defined contribution plan

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

Expenses under the defined contribution plan for the years ended December 31, 2020 and 2019 are NT$13,443 thousand and NT$13,008 thousand, respectively.

Defined benefits plan

The Company 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 15[th] year. The total units shall not exceed 45 units. Under the Labor Standards Act, the Company 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 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 will make up the difference in one appropriation before the end of March the following year.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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 Company expects to contribute NT$38,135 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.

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
	$10,091 1,524	$10,873 2,255
	$11,615	$13,128

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

Defined benefit obligation Plan assets at fair value Other non-current liabilities - Net defined benefit liabilities recognized on the balance sheets	2020.12.31	2019.12.31	2019.1.1
	$461,167 (299,794)	$463,742 (257,713)	$460,440 (232,650)
	$161,373	$206,029	$227,790

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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

Defined benefit obligation	Fair value of plan assets	Benefit liability (asset)
$460,440 10,873 4,558	$(232,650) - (2,303)	$227,790 10,873 2,255
15,431	(2,303)	13,128
(324) 14,038 (3,178)	- - (7,682)	(324) 14,038 (10,860)
10,536	(7,682)	2,854
(22,665) -	22,665 (37,743)	- (37,743)
463.742 10,091 3,431	(257,713) - (1,907)	206,029 10,091 1,524
13,522	(1,907)	11,615
464 19,351 (13,142)	- - (8,425)	464 19,351 (21,567)
6,673	(8,425)	(1,752)
(22,770) -	22,770 (54,519)	- (54,519)
$461,167	$(299,794)	$161,373

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

Discount rate Expected rate of salary increases	As of December 31,	As of December 31,
	2020	2019
	0.39% 1.50%	0.74% 1.50%

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
	$- 29,555 29,071 -	$(27,214) - - (27,068)	$- 31,519 31,114 -	$(23,067) - - (23,023)

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.

(16) Provisions, non-current

Decommissioning, restoration and rehabilitation

Decommissioning, restoration and rehabilitation
Beginning balance Reversal Ending balance	As of December 31,
	2020	2019
	$4,800 2,100	$4,500 300
	$6,900	$4,800

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

(20) Equity

A. Common stock

Common stock
Authorized shares (thousand shares) Authorized capital Issued shares (thousand shares) Issued capital	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

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

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

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

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,
	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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

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

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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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 Directors’ meeting and shareholders’ meeting on March 15, 2021 and June 17, 2020, respectively, 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(21) for further details on employees’ compensation and remuneration to directors and supervisors.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(18) Operating revenue

Revenue from contracts with customers Sale of goods revenue Other operating revenues Engineering revenues Subtotal Lease revenue Total	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$14,277,915 143,722 3,228	$12,522,321 128,024 -
	14,424,865 69,896	12,650,345 78,089
	$14,494,761	$12,728,434

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

Timing of revenue recognition: At a point in time	2020	2019
	$14,424,865	$12,650,345

(19) Expected credit losses

Operating expenses – Expected credit (gains) losses Notes receivable Accounts receivable Long-term receivable Total	Period ended 31 Dec.	Period ended 31 Dec.
	2020	2019
	$404 (21,020) 67,416	$(125) (16,964) 66,218
	$46,800	$49,129

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

The credit risk for the Company’s financial assets at fair value through other comprehensive income and financial assets measured at amortized cost are assessed as low (the same as the assessment result in the beginning of the period). Therefore, the loss allowance is measured at an amount equal to 12-month expected credit losses (loss ratio of 0 %).

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

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

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

A. The Company 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$1,046,358 thousand, its loss allowance amounting to NT$862 thousand which is measured at expected credit loss ratio of 0~3%.

Group 2:

Group 2:
Gross carrying amount Loss ratio Lifetime expected credit losses Total	Notyet due		Overdue			Total
		90-180 days	181-365 days	1-2years	>=2years
	$3,34,134 -%	$807,862 4%	$103,232 6%	$12,375 35%	$2,889 53%	$4,310,392 40,249
	-	28,348	6,037	4,342	1,522
	$3,384,134	$779,514	$97,195	$8,033	$1,367	$4,270,243

Group 3: The total carrying amount of long-term receivable is NT$106,883 thousand, its loss allowance amounting to NT$85,506 thousand which is measured at expected credit loss ratio of 80%.

December 31, 2019

Group 1: The total carrying amount of notes receivable is NT$899,573 thousand, its loss allowance amounting to NT$458 thousand which is measured at expected credit loss ratio of 0~3%.

Group 2:

Group 2:
Gross carrying amount Loss ratio Lifetime expected credit losses Total	Notyet due		Overdue			Total
		90-180 days	181-365 days	1-2years	>=2years
	$3,103,809 -%	$809,889 3%	$310,643 5%	$68,955 30%	$23,710 37%	$4,317,006 69,259
	-	24,297	15,532	20,686	8,744
	$3,103,809	$785,592	$295,111	$48,269	$14,966	$4,247,747

Group 3: The total carrying amount of long-term receivable is NT$167,896 thousand, its loss allowance amounting to NT$122,237 thousand which is measured at expected credit loss ratio of 70~80%.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

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

B. The movement in the loss allowance of trade receivables during the period ended December 31, 2020 and 2019 is as follows:

Notes receivable	Accounts receivable	Long-term receivable
$458 404 -	$69,259 (21,020) (7,990)	$122,237 67,416 (104,147)
$862	$40,249	$85,506
$583 (125) -	$86,223 (16,964) -	$72,758 66,218 (16,739)
$458	$69,259	$122,237

(20) Leases

A. Company as a lessee

The Company leases various properties, including real estate such as land and buildings and transportation equipment. The lease terms range from 2 to 15 years.

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

a. Amounts recognized in the balance sheet
(a) Right-of-use assets

The carrying amount of right-of-use assets

Land Building Transportation equipment Total	As of December 31,	As of December 31,
	2020	2019
	$515,961 59,381 1,437	$568,693 56,746 2,668
	$576,779	$628,107

During the years ended December 31, 2020 and 2019, the Company’s additions to right-of-use assets amounting to NT$130,426 thousand and NT$80,051 thousand, respectively.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(b) Lease liabilities

Lease liabilities Current Non-current	As of December 31,	As of December 31,
	2020	2019
	$558,193	$593,555
	122,685 435,508	97,310 496,045

Please refer to Note 6(22) finance costs for interest expenses resulted from lease liabilities; please refer to Note 12(5) liquidity risk management for maturity analysis of lease liabilities on December 31, 2020 and 2019.

b. Amounts recognized in the statement of comprehensive income

Depreciation charge for right-of-use assets

Land Building Transportation equipment Total	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$109,246 14,513 1,231	$99,458 14,186 1,232
	$124,990	$114,876

c. Income and costs relating to leasing activities

The expenses relating to short-term leases	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$167	$839

d. Cash outflow relating to leasing activities

During the years ended December 31, 2020 and 2019, the Company’s total cash outflows for leases amounting to NT$120,719 thousand and NT$131,780, respectively.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

e. Other information relating to leasing activities

Extension and termination options

Some of the Company’s property rental agreement contain extension and termination options. In determining the lease terms, the non-cancellable period for which the Company has the right to use an underlying asset, together with both periods covered by an option to extend the lease if the Company is reasonably certain to exercise that option and periods covered by an option to terminate the lease if the Company 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 Company.

After the commencement date, the Company 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 Company 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. Company as a lessor

Please refer to Note 6(9) for details on the Company’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	For the years ended December31,	For the years ended December31,
	2020	2019
	$69,896	$78,089

Please refer to Note 6(8) for relevant disclosure of property, plant and equipment for operating leases under IFRS 16. For operating leases entered by the Company, 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 follow:

years as at December 31, 2020 and 2019 are as follow:
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 December31,
	2020	2019
	$58,815 57,809 58,366 58,681 57,674 365,308	$43,278 52,723 51,627 40,993 53,789 394,291
	$656,653	$636,701

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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

		For theyears ended December 31,	For theyears ended December 31,	For theyears ended December 31,	For theyears ended December 31,
		2020			2019
	Operating costs	Operating expenses	Total amount	Operating costs	Operating expenses	Total amount
Employee benefits expense
Salaries	$566,131	$193,150	$759,281	$497,459	$216,090	$713,549
Labor and health insurance	23,588	19,823	43,411	23,089	18,232	41,321
Pension	15,510	9,548	25,058	16,070	10,066	26,136
Remuneration to directors	-	98,795	98,795	-	53,251	53,251
Depreciation	276,580	32,786	309,366	216,393	74,330	290,723
Amortization	600	6,103	6,703	670	6,055	6,725

The Company’s average headcount were 602 and 596 employees for the years ended December 31,2020 and 2019, respectively. There were 11 and 11 non-employee directors for the years ended December 31, 2020 and 2019, respectively.

The Company's average employee benefit expenses for the years ended December 31, 2020 and 2019 amounted to NT$1,401 thousand and NT$1,335 thousand, respectively.

The Company's average wages and salaries for the years ended December 31, 2020 and 2019 amounted to NT$1,285 thousand and NT$1,220 thousand, respectively. Average salary expense changed by 5%

The Company has established the Audit Committee on June 2016, the Supervisor institution has no more existed.

The company’s remuneration policy is based on the employee’s job position category, jurisdiction and their contribution to the company’s operations. The company would also consult the market salary level to set the fixed salary of each position, Meanwhile, the variable bonus is based on the company financial position and operation results. Remuneration for directors and employees is distributed in accordance with the Company’s articles of association.

Remuneration for directors is also based on their contribution and participation to the company’s operations. Otherwise, managers’ remuneration is paid in accordance with the company’s “Manager Salary and Remuneration Standards”. The remuneration of directors and managers must be reviewed and approved by the Salary and Compensation Committee and reported to the Board of Directors.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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 thereto 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 NT$79,985 thousand as the employee’s compensation and remuneration to directors and supervisors. 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.

(22) Non-operating income and expenses

A. Interest income

Interest income
Bank deposits Financial assets measured at amortized cost Short-term notes and bills Other Total	For the years ended December 31,
	2020	2019
	$3,797 3,291 108	$9,734 2,074 98
	$7,196	$11,906

B. Other Income

Other Income
Dividend income Other income-others Total	For the years ended December 31,
	2020	2019
	$81,863 34,663	$77,415 20,555
	$116,526	$97,970

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

C. Other gains and losses

Gain on disposal of property, plant and equipment (Loss) gain on disposal of investment property Gain (loss) on lease modification Foreign exchange gains (loss), net Other expense-others Total Finance costs Interest on borrowings from bank Interest on bonds payable Interest on lease liabilities Interest on borrowings from related party Total	For the years ended December31,	For the years ended December31,
	2020	2019
	$2,909 (12,333) 2,132 (25,810) (15,688)	$17,832 297,874 (38) (13,326) (32,698)
	$(48,790)	$269,644
	For the years ended December31,
	2020	2019
	$60,266 - 5,414 6,375	$70,458 14,000 5,603 13,664
	$72,055	$103,725

D. Finance costs

(23) 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 Share of other comprehensive loss of subsidiaries, associates and joint ventures accounted for under the equity method To be reclassified to profit or loss in subsequent periods: Share of other comprehensive loss of subsidiaries, associates and joint ventures accounted for under the equity method Total of other comprehensive (loss) income	Arising during theperiod	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
	$1,752 (146,497) 296 (54,895)	$- - - -	$1,752 (146,497) 296 (54,895)	$(350) - - -	$1,402 (146,497) 296 (54,895)
	$(199,344)	$-	$(199,344)	$(350)	$(199,694)

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

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

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 Share of other comprehensive loss of subsidiaries, associates and joint ventures accounted for under the equity method To be reclassified to profit or loss in subsequent periods: Share of other comprehensive loss of subsidiaries, 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
	$(2,854) 222,803 441 (60,374)	$- - - -	$(2,854) 222,803 441 (60,374)	$571 - - -	$(2,283) 222,803 441 (60,374)
	$160,016	$-	$160,016	$571	$160,587

(24) Income tax

The major components of income tax expense (income) as of December 31, 2020 and 2019 are as follows:

Income tax expense (income) recognized in profit or loss

Income tax expense (income) recognized in profit or loss
Current income tax expense (income): Current income tax charge Adjustments in respect of current income tax of prior periods Deferred tax expense (income): Deferred tax expense (income) relating to origination and reversal of temporary differences Deferred tax expense (income) relating to origination and reversal of tax loss and tax credit Adjustments in respect of current income tax of prior periods Total income tax expenses	For the years ended December31,
	2020	2019
	$330,683 47 32,955 - (330,409)	$19,171 2,670 (5,442) 211,623 (206,967)
	$33,276	$21,055

Income tax relating to components of other comprehensive income

Deferred tax (income) expense: Remeasurements of defined benefit plans Income tax relating to other comprehensive income	For the years ended December31,	For the years ended December31,
	2020	2019
	$(350)	$571
	$(350)	$571

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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 expenses not deductible for tax purposes Tax effect of deferred tax assets / liabilities Others Basic tax Corporate income surtax on undistributed 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	2019
	$2,506,203	$1,122,714
	$501,241 (118,059) 1,460 (379,994) 5 - 28,576 47	$224,543 (171,415) 2,184 (63,633) 25 21,292 5,389 2,670
	$33,276	$21,055

Deferred tax assets (liabilities) relate to the following:

For the year ended December 31, 2020

For the year ended December 31, 2020
Temporary differences Defined benefit liabilities Loss allowance Inventory valuation losses Unrealized impairment loss Decommissioning costs Components of buildings Unrealized exchange losses Unrealized exchange gains Allowance for sales return and discounts Deferred tax (expense)/income Net deferred tax assets/(liabilities) Reflected in balance sheet as follows: Deferred tax assets Deferred tax liabilities	Beginning balance as of January1,2020	Deferred tax income (expense) recognized in profit or loss	Deferred tax income (expense) recognized in other comprehensive income	Ending balance as of December 31,2020
	$72,992 27,622 1,322 318,745 796 12,941 3,443 (738) 187	$(8,582) (13,181) - 330,409 91 (8,262) (276) (2,751) 6	$(350) - - - - - - - -	$64,060 14,441 1,322 649,154 887 4,679 3,167 (3,489) 193
	$437,310	$297,454	$(350)	$734,414

	$438,048			$737,903
	$(738)			$(3,489)

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

For the year ended December 31, 2019

For the year ended December 31, 2019
Temporary differences Defined benefit liabilities Loss allowance Inventory valuation losses Unrealized impairment loss Decommissioning costs Components of buildings Unrealized exchange losses Unrealized exchange gains Unrealized gains or losses from financial assets Allowance for sales return and discounts Unused taxable loss Unused tax credits Deferred tax (expense)/income Net deferred tax assets/(liabilities) Reflected in balance sheet as follows: Deferred tax assets Deferred tax liabilities	Beginning balance as of January1,2019	Deferred tax income (expense) recognized in profit or loss	Deferred tax income (expense) recognized in other comprehensive income	Ending balance as of December 31,2019
	$77,344 22,617 1,322 111,778 796 12,819 2,457 (4,745) (58) - 78,572 133,051	$(4,923) 5,005 - 206,967 - 122 986 4,007 58 187 (78,572) (133,051)	$571 - - - - - - - - - - -	$72,992 27,622 1,322 318,745 796 12,941 3,443 (738) - 187 - -
	$435,953	$786	$571	$437,310

	$440,756			$438,048
	$(4,803)			$(738)

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 credits	$-	$60,000	2020

Unrecognized deferred tax assets

As of December 31, 2020 and 2019, the aggregate deductible temporary differences for which no deferred income tax assets have been recognized amounted to NT$180,467 thousand and NT$583,925 thousand, respectively.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

Unrecognized deferred tax liabilities relating to the investment in subsidiaries

The Company did not recognize any deferred tax liability for taxes that would be payable on the unremitted earnings of the Company’s overseas subsidiaries, as the Company 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.

The assessment of income tax returns

As of December 31, 2020, the assessment of the income tax returns of the Company through 2018.

(25) 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

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

B. Diluted 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) 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,
	$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.

(26) Changes in parent’s interest in subsidiaries

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.

7. Related party transactions

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

Name and nature of relationship of the related parties

Related PartyName

The Relationshipwith The Company

TAIWAN SECOM CO., LTD. and subsidiaries
WELLPOOL CO., LTD.
JIN SHUN MARITIME LIMITED
YUAN SHUN MARITIME LIMITED
JING SHUN MARITIME LIMITED
FENG SHUN MARITIME LIMITED
TAIPEI PORT TERMINAL COMPANY
LIMITED
KUOYUNG CONSTRUCTION &
ENGINEERING CO., LTD.
GOLDSUN NIHON CEMENT CO., LTD.
REI SHIN CONSTRUCTION CO., LTD.
GOLDSUN INNOVATIVE BUILDING
MATERIALS CO., LTD.
GOYU BUILDING MATERIALS CO., LTD.
GIMPO MARINE CO., LTD.
REIXIN ASSET MANAGEMENT INC.
LAKE VERNICIA DEVELOPMENT
COMPANY
RAIXIN QUALITY PRODUCTS LTD.
TRUST SANDSTONE CO., LTD.
HOBBY WORKS CO., LTD
FULL MAX CORPORATION LIMITED

Group with significant influence over the Company
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Subsidiary
Associate
Other related party
Other related party
Other related party

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

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

(1) Operation revenue - Sales

Operation revenue - Sales
Group with significant influence over the Company Subsidiaries Total	For the years ended December 31,
	2020	2019
	$27 183	$1,517 1,763
	$210	$3,280

The selling price and discount to the above related parties is depended on the product specifications and shipment distance. The terms were determined on order quantity, the discount of related parties was similar to bulk-order from non-related parties.

(2) Operating revenue – Other operating revenue

Operating revenue – Other operating revenue
Subsidiaries Other related parties Associates Group with significant influence over the Company Total	For the years ended December 31,
	2020	2019
	$88,092 31,682 - -	$93,550 18,354 28 24
	T $119,774	$111,956

The general terms were similar to bulk-order from non-related parties.

(3) Operating costs (included purchase and other operating costs)

Group with significant influence over the Company GOLDSUN EXPRESS & LOGISTICS CO., LTD Others Subsidiaries GOLDSUN NIHON CEMENT CO., LTD. TAIPEI PORT TERMINAL COMPANY LIMITED Others Other related parties FULL MAX CORPORATION LIMITED Total	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$597,015 1,080 560,953 389,643 174,503 302,070	$623,906 1,190 430,461 401,504 175,379 -
	$2,025,264	$1,632,440

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

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(4) Accounts receivable - related parties

Group with significant influence over the Company Subsidiaries WELLPOOL CO., LTD. KUOYUNG CONSTRUCTION & ENGINEERING CO., LTD. Others Other related parties TRUST SANDSTONE CO., LTD. Total (5) Accounts payable - related parties Group with significant influence over the Company GOLDSUN EXPRESS & LOGISTICS CO., LTD. Others Subsidiaries GOLDSUN NIHON CEMENT CO., LTD. TAIPEI PORT TERMINAL COMPANY LIMITED Others Total (6) Other receivable - related parties Group with significant influence over the Company GOLDSUN EXPRESS & LOGISTICS CO., LTD. Subsidiaries FENG SHUN MARITIME LIMITED YUAM SHUN MARITIME LIMITED GIMPO MARINE CO., LTD Others Other related parties Total	As of December 31,	As of December 31,
	2020	2019
	$- 19,223 - 10 3,354	$817 14,822 44 3 1,889
	$22,587	$17,575
	As of December 31,
	2020	2019
	$57,249 962 100,772 45,043 19,324	$62,790 2,678 91,838 6,130 -
	$223,350	$163,436
	As of December 31,
	2020	2019
	$11,849 5,038 4,278 - 370 -	$13,445 - - 18,668 2,258 5
	$21,535	$34,376

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

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

(7) Prepayments

Prepayments
Group with significant influence over the Company Subsidiaries Total	As of December 31,
	2020	2019
	$20,647 -	$40,035 757
	$20,647	$40,792

(8) Financing provided

Other payables – related parties

REI SHIN CONSTRUCTION CO., LTD.		For theyear ended December 31,2020	For theyear ended December 31,2020	For theyear ended December 31,2020
	Maximum balance	Ending balance	Rate	Total interest disbursement	Ending interest payable
	$900,000	$380,000	0.95%~ 1.28%	$6,375	$17

Effective July 9, 2020 to July 9, 2021. The Company should pay in full when the loan was expired but paying off in advance was permitted.

REI SHIN CONSTRUCTION CO., LTD.		For theyear ended December 31,2019	For theyear ended December 31,2019	For theyear ended December 31,2019
	Maximum balance	Ending balance	Rate	Total interest disbursement	Ending interest payable
	$1,375,000	$890,000	1.28%	$13,664	$493

Effective June 14, 2019 to June 14, 2020. The Company should pay in full when the loan was expired but paying off in advance was permitted.

(9) Lease - Company as lessee

The lease term was based on market conditions, and paid rent monthly.

A. Acquisition of right-of-use assets

Subsidiaries	For the year ended December 31,	For the year ended December 31,
	2020	2019
	$223,677	$200,207

During the years ended December 31, 2020 and 2019, the depreciation charge for above right-of-use assets amounting to NT$58,255 thousand and NT$50,052, respectively.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

B. Lease liabilities

Subsidiaries Current Non-current	For the year ended December 31,	For the year ended December 31,
	2020	2019
	$224,567	$201,353
	62,664 161,903	49,472 151,881

During the years ended December 31, 2020 and 2019, the interest on above lease liabilities amounting to NT$2,696 thousand and NT$2,185, respectively.

C. Refundable deposits

Refundable deposits
Subsidiaries	For the year ended December 31,
	2020	2019
	$1,948	$1,948

(10) Lease - Company as lessor

A. Lease revenue

Lease revenue
Subsidiaries Group with significant influence over the Company Other related parties Total	For the year ended December 31
	2020	2019
	$3,755 5,870 90	$3,744 5,864 611
	$9,715	$10,219

B. Guarantee deposits

Group with significant influence over the Company Subsidiaries Other related parties Total	As of December 31,	As of December 31,
	2020	2019
	$878 654 -	$898 644 104
	$1,532	$1,646

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(11) Lease costs

Group with significant influence over the Company GOYUN SECURITY CO., LTD. GUOYUN TECHNOLOGY CO., LTD. Others Subsidiaries Others Total	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$2,222 1,776 450 -	$2,206 - 244 5
	$4,448	$2,455

(12) Operating expense

Group with significant influence over the Company Subsidiaries Total	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$23,656 5,865	$26,622 -
	$29,521	$26,622

(13) Property transactions

The Company has purchased machinery, transport and other equipment and commissioned to build a business building, which were recognized as property plant and equipment:

Group with significant influence over the Company Subsidiaries Total	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$9,076 -	$18,702 238,102
	$9,076	$256,804

(14) Key management personnel compensation

Short-term employee benefits Post-employment benefits Total	For the years ended December 31,	For the years ended December 31,
	2020	2019
	$57,204 -	$57,018 -
	$57,204	$57,018

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

8. Assets pledged as security

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

Assetspledged for security	Carryingamount	Carryingamount	Secured liabilities
	December 31, 2020	December 31, 2019
Inventories`－`Land of construction Financial assets at fair value through other comprehensive income, current Financial assets at fair value through other comprehensive income, non-current Long-term equity investment for using equity method Financial assets measured at amortized cost- current Property, plant and equipment`－`Land and Buildings Investment property, net Total	$210,368 531,360 437,780 780,000 8,163 2,181,157 1,484,566	$210,368 537,510 778,221 807,000 71,130 2,186,312 1,484,424	Bank loan Bank loan`、`C/P Bank loan`、`C/P Bank loan`、`C/P Restricted account`、`Loan guarantee Bank loan`、`C/P Bank loan`、`C/P
	$5,633,394	$6,074,965

9. Commitments and contingencies

(1) Promissory notes issued by the Company to secure bank loans and construction performance amounted to NT$3,105,659 thousand as of December 31, 2020.
(2) The Company’s unused letters of credit for importing raw materials amounted to NTD29,451 thousand.
(3) The Company provide endorsements or guarantees for subsidiaries, please refer to Note 13.

10. Losses due to major disasters

None.

11. Significant subsequent events

GOLDSUN INNOVATIVE BUILDING MATERIALS CO., LTD. resolved at its board meeting on February 26, 2021 to proceed dissolution and liquidation. The date of dissolution is March 1, 2021.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

12. Others

(1) Categories of financial instruments

Financial assets Financial assets at fair value through other comprehensive income Financial assets measured at amortized cost Cash and cash equivalents (exclude cash on hand) Financial assets measured at amortized cost Notes receivable Accounts receivable (including related parties) Other receivables (including related parties) Long-term receivable Refundable deposits Total Financial liabilities Financial liabilities at amortized cost: Short-term loan Short-term notes and bills payable Accounts payable (including related parties) Other payables (including related parties) Lease liabilities Long-term loan (including due in one year) Long-term notes and bills payable Guarantee deposits Total	As of December 31,	As of December 31,
	2020	2019
	$1,309,074 472,895 103,663 1,045,496 4,270,243 40,280 21,377 27,892	$1,558,841 1,182,864 106,630 899,115 4,247,747 72,149 45,659 53,349
	$7,290,920	$8,166,354
	As of December 31,
	2020	2019
	$1,300,000 - 1,453,116 1,027,972 558,193 2,500,000 1,748,296 28,157	$2,910,000 2,608,730 1,436,003 1,470,660 593,355 2,500,000 - 27,080
	$8,615,734	$11,545,828

(2) Financial risk management objectives and policies

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

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

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

The Company 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 Company 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 Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s net investments in foreign subsidiaries. The net investments in foreign subsidiaries is a strategic investment that the Company has not hedged this.

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

When NTD strengthens/weakens against USD by ten basis points, the profits for the years ended 31 December 2020 and 2019 are decreased/increased by NT$4,785 thousand and NT$34,507 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 Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s loans and receivables at floating interest rates, bank borrowings with fixed interest rates and floating interest rates.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

The Company manages its interest rate risk by maintaining a balanced portfolio of fixed and floating interest loans and debts, along with interest rate swaps.

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 Company’s profit would decrease / increase by NT$5,075 thousand and NT$6,831 thousand for the years ended December 31, 2020 and 2019, respectively.

Equity price risk

The Company’s listed and unlisted equity securities are susceptible to market price risk arising from uncertainties about future values of the investment securities. The Company’s listed and unlisted equity securities are classified under financial assets at fair value through other comprehensive income. The Company 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 Company’s senior management on a regular basis. The Company’s Board of Directors reviews and approves all equity investment decisions.

The equity price sensitivity analysis is counting based on changes of fair value for a fiscal year. Assumed that when the investment price of measured at fair value through other comprehensive income of financial assets of publicly quoted entity increase / decrease ten basis points, the Company’s equity would increase / decrease by NT$120,525 thousand and NT$131,617 thousand for the year ended December 31, 2020 and 2019, respectively.

(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 Company 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.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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

Credit risk from balances with banks and other financial instruments is managed by the Company’s treasury in accordance with the Company’s policy. The Company 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.

(5) Liquidity risk management

The Company’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, bank borrowings and convertible bonds. The table below summarizes the maturity profile of the Company’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 variable interest rates is extrapolated based on the estimated interest rate yield curve as of the end of the reporting period.

Non-derivative financial instruments

As of December 31, 2020 Borrowings Accounts payable Other payables Others payable-related parties Lease liabilities (Note) Long-term notes and bills payable As of December 31, 2019 Borrowings Short-term notes and bills payable Accounts payable Others payable Others payable-related parties Lease liabilities (Note)	Less than 1year	2 to 3years	4 to 5years	> 5years	Total
	$1,624,793 1,451,116 647,972 381,619 129,494 - $3,139,323 2,610,000 1,436,003 580,660 892,065 101,790	$1,833,320 - - - 256,485 1,800,000 $1,341,965 - - - - 240,723	$404,200 - - - 124,607 - $1,016,100 - - - - 152,329	$- - - - 60,969 - $- - - - - 113,303	$3,862,313 1,453,116 647,972 381,619 571,555 1,800,000 $5,497,388 2,610,000 1,436,003 580,660 892,065 608,145

Note: Including cash flows resulted from short-term leases or leases of low-value assets.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(6) Fair values of financial instruments

Information of reconciliation for liabilities during 2020 is as follows:

2020.01.01 Cash flow Non-cash change 2020.12.31	Short-term loans	Short-term notes and bills payable	Other payable – relatedparties	Long-term loans (including due in oneyear)	Long-term notes and bills payable	Lease liabilities	Guarantee deposits $27,080 1,077 -	Balance of liabilities arising from financing activities
	$2,910,000 (1,610,000) -	$2,608,730 (2,608,730) -	$890,000 (510,000) -	$2,500,000 - -	$- 1,748,296 -	$593,355 (120,552) 85,390		$9,529,165 (3,099,909) 85,390
	$1,300,000	$-	$380,000	$2,500,000	$1,748,296	$558,193	$28,157	$6,514,646

Information of reconciliation for liabilities during 2019 is as follows:

2019.01.01 Cash flow Non-cash change 2019.12.31	Short-term loans	Short-term notes and bills payable	Other payable – relatedparties	Bonds Payable (including due in one year)	Long-term loans (including due in oneyear)	Lease liabilities	Guarantee deposits $32,008 (4,928) -	Balance of liabilities arising from financing activities
	$2,700,000 210,000 -	$1,727,825 880,905 -	$1,375,000 (485,000) -	$1,000,000 (1,000,000) -	$1,600,000 900,000 -	$678,725 (130,941) 45,571		$9,113,558 370,036 45,571
	$2,910,000	$2,608,730	$890,000	$-	$2,500,000	$593,355	$27,080	$9,529,165

(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 Company 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, beneficiary certificates etc.) at the reporting date.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

c. Fair value of equity instruments without market quotations (including private placement of listed equity securities, unquoted public company and private company 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 Company’s financial assets and financial liabilities measured at amortized cost, cash and cash equivalents, trade receivables, trade payable, other current liabilities and bonds payable 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 Company.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

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

(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 as a whole. 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 Company 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 Company’s assets and liabilities

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

As of December 31, 2020

Level 1 Level 2 Level 3 Total Financial assets: Financial assets at fair value through other comprehensive income Equity instrument measured at fair value through other comprehensive income $1,205,250 $- $103,824 $1,309,074 As of December 31, 2019 Level 1 Level 2 Level 3 Total Financial assets: Financial assets at fair value through other comprehensive income Equity instrument measured at fair value through other comprehensive income $1,316,165 $- $242,676 $1,558,841

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

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:

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
	$242,676 29,572 (6,473) (161,951)
	$103,824
	$193,216 (2,378) 51,838
	$242,676

Total profits and losses recognized in profit or loss for the years ended 31 December 2020 in the table above contain gains or losses related to assets on hand in the amount of NT$0 thousand.

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:

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

As of December 31, 2020

Valuation techniques Financial assets: Measured at fair value through other comprehensive income Stocks Market approach Stocks Income approach Stocks Asset approach As of December Valuation techniques Financial assets: Measured at fair value through other comprehensive income Stocks Market approach Stocks Income approach Stocks Asset approach	Valuation techniques	Significant unobservable inputs	Quantitative information	Relationship between inputs and fair value	Sensitivityof the input to fair value
		Earnings per share Discount rate Discount for lack of marketability 31, 2019 Significant unobservable inputs	8.48 9.96~16.65 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 Company’s equity by NT$1,696 thousand. 10% increase (decrease) in the discount rate would result in increase (decrease) in the Company’s equity by NT$133 thousand. 10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Company’s equity by NT$8,034 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 Company’s equity by NT$2,351 thousand. 10% increase (decrease) in the discount rate would result in increase (decrease) in the Company’s equity by NT$137 thousand. 10% increase (decrease) in the discount for lack of marketability would result in (decrease) increase in the Company’s equity by NT$287 thousand.

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

value hierarchy

The Company’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 Company’s accounting policies at each reporting date.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued)

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

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

As of December 31, 2020

As of December 31, 2020
Financial assets not measured at fair value but for which the fair value is disclosed: Investment properties (please refer to Note 6(9)) As of December 31, 2019 Financial assets not measured at fair value but for which the fair value is disclosed: Investment properties (please refer to Note 6(9))	Level 1	Level 2	Level3	Total
	$- Level 1	$- Level 2	$9,288,527 Level3	$9,288,527 Total
	$-	$-	$9,237,919	$9,237,919

(9) Significant assets and liabilities denominated in foreign currencies

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

Financial assets	(Unit: Foreign currency: thousands, NTD: thousands) As of 31 December, 2020	(Unit: Foreign currency: thousands, NTD: thousands) As of 31 December, 2020	(Unit: Foreign currency: thousands, NTD: thousands) As of 31 December, 2020
	Foreign currencies	Foreign exchange rate	NTD
Monetary items: USD CNY Non-monetary items: USD Financial assets
	Foreigncurrencies	Foreign exchangerate	NTD
	$11,510 2,528 284,434	29.98 4.31 29.98	$345,070 10,896 8,527,328
Monetary items: USD CNY Non-monetary items: USD

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

(10) Capital management

The primary objective of the Company’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 Company manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Company 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.
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: Please refer to Attachment 4.
h. Receivables from related parties with amounts exceeding the lower of NT$100 million and 20 percent of capital stock: Please refer to Attachment 5
i. Financial instruments and derivative transactions: None.
j. Significant intercompany transactions between consolidated entities: Please refer to Attachment 6.
k. Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to Attachment 7.

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS-(Continued) (Expressed in Thousands of New Taiwan Dollars unless Otherwise Specified)

(2) 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.

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)

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.

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" 。

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%.

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".

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	$-

Attachment 6: Significant intercompany transactions between consolidated entities


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.

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

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	Percent age of owners hip (%)	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 (USD 115,977)	$(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 its 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 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, res 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.

100

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. 101

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%

102

THE CONTENTS OF STATEMENTS OF MAJOR ACCOUNTING ITEMS

Item
Major accounting items in assets, liabilities and equity
Statement of Cash and cash equivalents
Statement of Financial assets at fair value through other comprehensive income, current
Statement of Financial assets measured at amortized cost, current
Statement of Notes receivable
Statement of Accounts receivable
Statement of Other receivables
Statement of Inventories
Statement of Prepayments
Statement of Financial assets at fair value through other comprehensive income, noncurrent
Statement of changes In investments accounted for using equity method
Statement of changes in Property, plant and equipment and its accumulated depreciation
Statement of changes in Investment property and its accumulated depreciation
Statement of changes in Intangible assets
Statement of Deferred tax assets
Statement of changes in Right-of-use assets
Statement of changes in accumulated depreciation and impairment of Right-of-use assets
Statement of Short-term borrowings
Statement of Accounts payable
Statement of Other payables
Statement of Lease liabilities
Statement of Other current liabilities
Statement of Advance receipt
Statement of Long-term borrowings
Statement of Long-term notes and bills payable
Statement of Provisions, non-current
Major accounting items in profit or loss
Statement of Operating revenue
Statement of Operating costs
Statement of Production overheads
Statement of Sales and marketing expenses
Statement of General and administrative expenses
Statement of Research and development expenses
Statement of Net other operating income and expenses
Statement of Finance costs
Statement of Labor, depreciation and amortization by function

Index

1
2
Note 6(3)
3
4
5
6
7
8
9
Note 6(8)
Note 6(9)
Note 6(10)
Note 6(24)
10
11
12
13
14
15
16
17
18
19
Note 6(16)
20
21
22
23
24
25
Note 6(22)
Note 6(22)
Note 6(21)

103

GOLDSUN BUILDING MATERIALS CO., LTD.

1. Statement of Cash and cash equivalents

December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description	Amount	Note
Cash on hand and petty cash Bank savings Checking accounts Savings accounts Savings accounts - Foreign currency Time deposits - Foreign currency Cash equivalents Total	USD 2,331 thousand / Exchange rate 28.48 CNY 87 thousand / Exchange rate 4.38 GBP 0.01 thousand / Exchange rate 38.9 CNY 1,250 thousand / Exchange rate 4.38 USD 6,011 thousand / Exchange rate 28.48	$4,590 132,625 96,834 66,376 379 1 5,475 171,205 $477,485	Bank's short-term bill that have maturity within 3 months.

104

GOLDSUN BUILDING MATERIALS CO., LTD.

2.Statement of Financial assets at fair value through other comprehensive income, current

December 31, 2020

(In Thousands of New Taiwan Dollars)

Name of securities	Description	Units bonds/shares	Par Value	Amount	Rate	Cost	Fair Value	Fair Value	Changes in fair value attributable to changes in credit risk	Note
							Unit Price	Amount
Stock	TAIWAN CEMENT CORPORATION	16,800,000	$10	$168,000	-	$365,470	$43.40	$725,760	-	12,300 thousand shares provide for loan guarantee

105

GOLDSUN BUILDING MATERIALS CO., LTD.

3.Statement of Notes receivable

December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description	Amount	Note
Third Parties FUTSU CONSTRUCTION Co., LTD. ZHONGFU CONSTRUCTION CO., LTD. Others Subtotal Less: Loss allowance Total	The amount of individual client in others does not exceed 5% of the account balance.	$73,563 64,722 908,073 1,046,358 (862) $1,045,496

106

GOLDSUN BUILDING MATERIALS CO., LTD.

4.Statement of Accounts receivable

December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description	Amount	Note
Third Parties DACIN CONSTRUCTION CO., LTD. FUTSU CONSTRUCTION CO., LTD. Others Subtotal Less: Loss allowance Total Related parties WELLPOOL CO., LTD. TRUST SANDSTONE CO., LTD. Others Subtotal Total	The amount of individual client in others does not exceed 5% of the account balance. The amount of individual client in others does not exceed 5% of the account balance.	$477,002 235,931 3,574,972 4,287,905 (40,249) 4,247,656 19,223 3,354 10 22,587 $4,270,243

107

GOLDSUN BUILDING MATERIALS CO., LTD.

5.Statement of Other receivables

December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description	Amount	Note
Third Parties Others Related parties GOLDSUN EXPRESS & LOGISTICS CO., LTD. FENG SHUN MARITIME LTD. YUAM SHUN MARITIME LTD. Others Subtotal Total	The amount of individual client in others does not exceed 5% of the account balance.	$18,745 11,849 5,038 4,278 370 21,535 $40,280

108

GOLDSUN BUILDING MATERIALS CO., LTD.

6.Statement of Inventories

December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description	Amount	Amount	Note
		Cost	Net realizable value
Raw materials Buildings for Sale Construction land Subtotal Less: Allowance for inventory valuation losses Total		$331,924 90,280 210,368 632,572 (10,408) $622,164	$331,924 84,709 324,503 $741,136	Net realizable value represents market value. Net realizable value represents market value. Net realizable value represents market value.

109

GOLDSUN BUILDING MATERIALS CO., LTD.

7.Statement of Prepayments

December 31, 2020

(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Item	Description	Amount	Note
Prepayments Prepayment for purchases Prepaid expenses Others Total	Cement, Furnace dust, Gravel, Sand stone, Oil…	$234,194 61,462 27,191 $322,847

110

GOLDSUN BUILDING MATERIALS CO., LTD.

8.Statement of Financial assets at fair value through other comprehensive income, noncurrent

For the year ended December 31, 2020

									(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
	Beginning balance		Addition		Decrease		Adjustments for change in value	Ending	balance	Collateral	Note
	Shares	Fair value	Shares	Amount	Shares	Amount		Shares	Fair value
Stock 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. Total	4,217,669 32,320,000 7,405,200 700,837 259,875 2,000,000 150,000 250,000 - -	$374,529 252,419 210,012 6,682 2,874 18,420 2,262 2,427 - -	1,094,331 661,921 - - - - - - 1,334 1,429,653	$95,029 4,203 - - - - - - - 15,097	- ######### - (688,201) (103,950) - - - - -	$- (304,333) - (6,682) Note (1,040) Note - - - - - $(312,055)	$1,616 56,027 (144,772) - (295) (1,460) 236 63 - -	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	$471,174 8,316 65,240 - 1,539 16,960 2,498 2,490 - 15,097	4,200 thousand shares provide for loan guarantee None 7,405 thousand shares provide for loan guarantee None None None None None None None
		$869,625		$114,329			$(88,585)		$583,314

Note: Cash capital reduction.

111

GOLDSUN BUILDING MATERIALS CO., LTD.

9.Statement of changes in Investments accounted for using equity method

For the year ended December 31, 2020

									(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Item	Beginningbalance		Addition(Note1)		Decrease(Note2)		Endingbalanc		e	Fair value / Net assets value		Collateral	Note
	Shares	Amount	Shares	Amount	Shares	Amount	Shares	%	Amount	Unit price (NTD)	Fair value
RUEI SHIN CONSTRUCTIN CO., LTD. GOLDSUN INVESTMENT CO., LTD. WELLPOOL CO., LTD. GOLDSUN NIHON CEMENT CO., LTD. KUOYUNG CONSTRUCTION & ENGINEERING CO., LTD. EASE GREAT INVESTMENTS LTD. HWA YA DEVELOPMENT CO., LTD. TAIPEI PORT TERMINAL COMPANY LIMITED JIN SHUN MARITIME LIMITED YUAN SHUN MARITIME LIMITED JING SHUN MARITIME LIMITED FENG SHUN MARITIME LIMITED TAIWAN BUILDING MATERIALS (HONG KONG) LIMITED GOLDSUN INNOVATIVE BUILDING MATERIALS CO., LTD. GOYU BUILDING MATERIALS CO., LTD. GIMPO MARINE CO., LTD. REIXIN ASSET MANAGEMENT INC. LAKE VERNICIA DEVELOPMENT COMPANY RAIXIN QUALITY PRODUCTS LTD. Total	180,000,000 3,996,000 18,224,389 11,460,000 30,000,000 178,462,000 15,714,108 250,000,000 78,000,000 303,420,000 1 1 116,686,664 6,000,000 18,200,000 10,000,000 - - 1,913,333	$2,642,376 29,489 534,642 166,781 374,383 6,793,332 159,307 2,375,728 146,954 1,144,520 (23,899) 3,217 463,204 21,739 170,279 84,779 - - 6,479	- - 56,000 - - - - - - - 10,000,000 6,250,000 - - 7,800,000 - 100,000,000 100,000 -	$- - 3,209 - 463 - 2,140 116,529 - - 275,040 191,500 - - 69,855 9,872 1,053,650 866 -	100,000,000 3,996,000 - - - 89,075,734 - - - 185,250,000 - - - - - - - - 797,222	$1,055,160 29,489 - 3,368 - 2,381,895 - - 22,248 728,444 - - 23,342 9,157 - - - - 1,658	80,000,000 - 18,280,389 11,460,000 30,000,000 89,386,266 15,714,108 250,000,000 78,000,000 118,170,000 10,000,001 6,250,001 116,686,664 6,000,000 26,000,000 10,000,000 100,000,000 100,000 1,116,111	100% 100% 51% 59% 100% 100% 31% 100% 100% 100% 100% 100% 100% 100% 65% 100% 100% 100% 16%	$1,587,216 - 537,851 163,413 374,846 4,411,437 161,447 2,492,257 124,706 416,076 251,141 194,717 439,862 12,582 240,134 94,651 1,053,650 866 4,821	$19.84 - 52.00 14.26 12.49 49.35 10.27 9.97 1.60 3.52 25.11 31.15 3.77 2.10 9.24 9.47 10.54 8.66 4.32	$1,587,216 - 950,580 163,413 374,846 4,411,437 161,447 2,492,257 124,706 416,076 251,141 194,717 439,862 12,582 240,134 94,651 1,053,650 866 4,821	None None 15,000 thousand shares provide for loan guarantee None None None None None None None None None None None None None None	subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary subsidiary associate
		$15,093,310		$1,723,124		$4,254,761			$12,561,673

Note 1: Including new investment, investment gain (loss) and exchange differences on translation of foreign operations.

Note 2: Including capital deducted by cash, investment gain (loss) and exchange differences on translation of foreign operations.

112

GOLDSUN BUILDING MATERIALS CO., LTD.

10.Statement of changes in Right-of-use assets

For the year ended December 31, 2020

(In Thousands of New Taiwan Dollars)

	Beginning balance	Additions	Disposals	Ending balance	Note
Land Buildings Transportation equipment Total	$666,981 70,932 3,900 $741,813	$57,715 72,711 - $130,426	$89,454 70,932 - $160,386	$635,242 72,711 3,900 $711,853

113

GOLDSUN BUILDING MATERIALS CO., LTD.

11.Statement of changes in accumulated depreciation and impairment of Right-of-use assets For the year ended December 31, 2020

(In Thousands of New Taiwan Dollars)

	Beginning balance	Depreciation	Disposals	Ending balance	Note
Land Buildings Transportation equipment Total	$98,288 14,186 1,232 $113,706	$109,246 14,513 1,231 $124,990	$88,253 15,369 - $103,622	$119,281 13,330 2,463 $135,074

114

GOLDSUN BUILDING MATERIALS CO., LTD.

12.Statement of Short-term borrowings

December 31, 2020

(In Thousands of New Taiwan Dollars)

Type	Description		Ending balance	Contract period	Interest rate	Loan commitment	Collateral	Note
Secured bank loans Unsecured bank loans Total			$1,000,000 300,000 $1,300,000	Aug. 28, 2020~Apr. 16, 2021 Oct. 19, 2020~May. 31, 2021	0.85%~0.88% 0.85%~0.88%	Please refer to Note 6(11)	Please refer to Note 8

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13.Statement of Accounts payable

December 31, 2020

(In Thousands of New Taiwan Dollars)

Vendor name	Description	Amount	Note
Third parties RUENTEX MATERIALS CO., LTD. LUNG YI CHANG SANDSTONE CO., LTD. SOUTHEAST CEMENT CORPORATION CHC RESOURCES CORP. HUNG YUN SANDSTONE CO., LTD. Others Subtotal Related parties GOLDSUN NIHON CEMENT CO., LTD. GOLDSUN EXPRESS & LOGISTICS CO., LTD. TAIPEI PORT TERMINAL COMPANY LTD. Others Subtotal Total	The amount of individual vendor in others does not exceed 5% of the account balance. The amount of individual vendor in others does not exceed 5% of the account balance.	$112,915 86,263 62,423 62,706 90,395 815,064 1,229,766 100,772 57,249 45,043 20,286 223,350 $1,453,116

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14.Statement of Other payables

December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description		Amount	Note
Payroll payable Shipping payable Payables on equipment Oil payable Port payable Others expense Total			$261,214 176,115 19,626 11,726 5,935 173,356 $647,972

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15.Statement of Lease liabilities

December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description	Period	Discount rate	Ending balance	Note
Current lease liabilities Land Buildings Transportation equipment Subtotal Non-current lease liabilities Land Buildings Transportation equipment Subtotal Total		Jan. 1, 2017-Nov. 30, 2029 Feb. 1, 2020-Jan. 31, 2025 Jun. 28, 2018-Feb. 27, 2022 Jan. 1, 2017-Nov. 30, 2029 Feb. 1, 2020-Jan. 31, 2025 Jun. 28, 2018-Feb. 27, 2022	1.15%~1.336% 1.336% 1.15% 1.15%~1.336% 1.340% 1.15%	$107,522 13,918 1,245 122,685 391,201 44,098 209 435,508 $558,193

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16.Statement of Other current liabilities

December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description		Amount	Note
Fund held in custody Receipts under custody Total .	Business tax, and etc. Income tax collection Others		$109,051 1,899 674 $111,624

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17.Statement of Advance receipt

December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description		Amount	Note
Advance rent			$18,081	r

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GOLDSUN BUILDING MATERIALS CO., LTD. 18.Statement of Long-term borrowings December 31, 2020

(In Thousands of New Taiwan Dollars)

						(In Thousands of New Taiwan Dollars)
Lender	Description	Amount	Contractperiod	Interest rate	Collateral	Note
More than one year due Bank of KGI Bank of KGI O-Bank Bank Of Taiwan Bank Of Taiwan Bank Of Taiwan Bank Of Taiwan Subtotal Less: current portion Bank Of Taiwan Total	Secured loans Unsecured loans Secured loans Secured loans Unsecured loans Secured loans Unsecured loans	$220,000 380,000 200,000 450,000 450,000 400,000 400,000 2,500,000 (300,000) $2,200,000	2020.10.30- 2021.2.26 2020.10.30- 2021.2.26 2020.6.29- 2022.1.17 2019.12.25- 2024.12.25 2019.12.25- 2024.12.25 2018.12.25- 2023.12.25 2018.12.25- 2023.12.25	Note1 Note1 Note1 Note1 Note1 Note1 Note1	Note2 None Note2 Note2 None Note2 None	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. Revolving use within the credit period and the repayment will be due in a lump- sum payment on the expiration of the term. Principal is repaid in 10 half-yearly payments, the 1st to 4nd payments will be NTD$25,000 thousand, 5nd to 8nd payments will be NTD$50,000 thousand and 9nd to 10nd payments will be NTD$100,000 thousand; interest paid every month. Principal is repaid in 10 half-yearly payments, the 1st to 4nd payments will be NTD$25,000 thousand, 5nd to 8nd payments will be NTD$50,000 thousand and 9nd to 10nd payments will be NTD$100,000 thousand; interest paid every month. Principal is repaid in 10 half-yearly payments, the 1st to 4nd payments will be NTD$25,000 thousand, 5nd to 8nd payments will be NTD$50,000 thousand and 9nd to 10nd payments will be NTD$100,000 thousand; interest paid every month. Principal is repaid in 10 half-yearly payments, the 1st to 4nd payments will be NTD$25,000 thousand, 5nd to 8nd payments will be NTD$50,000 thousand and 9nd to 10nd payments will be NTD$100,000 thousand; interest paid every month.

Note1: Rate range is 0.8871%-1.13% 。 Note2: For the guarantee, please refer to Note 8.

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19.Statement of Long-term notes and bills payable

December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Guarantee or acceptance agency	Contract term	Interest rate				Amount	Amount		Collateral
					Issue amount		Unamortized short-term notes discount		Book value
Commercial promissory note Total	GRAND BILLS CHINA BILLS DAH CHUNG BILLS INTERNATIONAL BILLS INTERNATIONAL BILLS CHINA BILLS	2020/11/18-2021/2/18 2020/11/27-2021/1/26 2020/11/27-2021/1/26 2020/11/30-2021/1/29 2020/12/18-2021/3/18 2020/12/18-2021/3/18	0.31%~0.34%		$200,000 350,000 350,000 350,000 300,000 200,000 $1,750,000		$221 196 196 219 523 349 $1,704		$199,779 349,804 349,804 349,781 299,477 199,651 $1,748,296	For the guarantee, please refer to Note 8.

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20.Statement of Operating revenue

For the year ended December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Quantity	Amount	Note
Sales of ready mixed concrete Less: Sales discounts Less: Sales returns Net sales Other operating revenue Engineering revenue Rent revenue Total	6,347,933m3 Selling sandstone, squares, etc. Contract for composite wall project Tainan Shopping Mall, Goldsun building and other rent	$14,321,533 (43,618) 14,277,915 143,722 3,228 69,896 $14,494,761

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21.Statement of Operating costs

For the year ended December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Amount	Amount	Amount	Note
	Subtotal		Total
Sales cost of products Direct material Beginning of year Add: raw material purchased Less: raw material, end of year Sale of raw materials Production overheads Manufacturing costs Add: work in process, beginning of year Less: work in process, end of year Cost of finished goods Add: finished goods, beginning of year Less: finished goods, end of year Others Sales cost of purchased goods Beginning of year Add: purchase current year Less: purchased goods, end of year Costs of goods sold Rent costs Engineering costs Other operating costs Total	$114,569 9,835,735 (331,924) (63,650) - 42,306 -		$9,554,730 2,218,074 11,772,804 - - 11,772,804 - - (4,205) 42,306 11,810,905 66,569 3,881 97,722 $11,979,077

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22.Statement of Production overheads

For the year ended December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description	Amount	Note
Rent expense Salaries Depreciation and depletion Repair expense Consumable materials and tools Others Total	The amount of individual vendor in others does not exceed 5% of the account balance.	$854,867 571,262 251,586 113,600 78,262 348,497 $2,218,074

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23.Statement of Sales and marketing

For the year ended December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description	Amount	Note
Salaries Entertainment expense Miscellaneous expenses Insurance expense Others Total	The amount of individual vendor in others does not exceed 5% of the account balance.	$70,782 8,675 8,110 6,929 11,157 $105,653

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24.Statement of General and administrative expenses

For the year ended December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description	Amount	Note
Salaries Depreciation Others Total	The amount of individual vendor in others does not exceed 5% of the account balance.	$216,593 32,190 102,651 $351,434

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25.Statement of Research and development expenses

For the year ended December 31, 2020

(In Thousands of New Taiwan Dollars)

Item	Description	Amount	Note
Salaries Others Total	The amount of individual vendor in others does not exceed 5% of the account balance.	$5,898 3,032 $8,930

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AI assistant

GBM — Audit Report / Information 2020

52130_rns_2020-11-10_6c422776-db0d-4abc-9554-c6f5693c7a37.pdf

GOLDSUN BUILDING MATERIALS CO., LTD.

PARENT COMPANY ONLY

FINANCIAL STATEMENTS

WITH REPORT OF INDEPENDENT AUDITORS

GOLDSUN BUILDING MATERIALS CO., LTD.

INDEX

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 Parent Company Only Financial Statements

Auditor’s Responsibilities for the Audit of the Parent Company Only Financial Statements

Notice to Readers

English Translation of Financial Statements Originally Issued in Chinese

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

English Translation of Financial Statements Originally Issued in Chinese

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

English Translation of Financial Statements Originally Issued in Chinese

GOLDSUN BUILDING MATERIALS CO., LTD.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

English Translation of Financial Statements Originally Issued in Chinese

English Translation of Financial Statements Originally Issued in Chinese

GOLDSUN BUILDING MATERIALS CO., LTD. PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS For the years ended December 31, 2020 and 2019

1. History and organization

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

3. Newly issued or revised standards and interpretations

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

Amendment to IFRS 1

Amendment to IFRS 9 Financial Instruments

Amendment to Illustrative Examples Accompanying IFRS 16 Leases

Amendment to IAS 41

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

4. Summary of Significant Accounting Policies

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

B. Impairment of financial assets

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

(10) Investments accounted for under the equity method

(11) Property, plant and equipment

(12) Investment property

Company as a lessee

Company as a lessor

(14) Intangible assets

(15) Impairment of non-financial assets

(16) Provisions

Provision for decommissioning, restoration and rehabilitation costs

(17) Treasury shares

(18) Revenue recognition

Sale of goods

(19) Borrowing costs

(20) Government grants

(21) Post-employment benefits

(22) Income taxes

Current income tax

Deferred tax

5. Significant Accounting Judgments, Estimates and Assumptions

(1) Judgment

A. Investment properties

(2) Estimates and assumptions

A. Fair value of financial instruments

B. Impairment of non-financial assets

C. Pension benefits

D. Income tax

E. Accounts receivables–estimation of impairment loss

6. Contents of Significant Accounts

(3) Financial assets measured at amortized cost

(4) Notes receivable

English Translation of Financial Statements Originally Issued in Chinese GOLDSUN BUILDING MATERIALS CO., LTD.

GBM Audit Report / Information 2020