GKB — Interim / Quarterly Report 2021

Nov 16, 2021

Grape King Bio Ltd. and Subsidiaries

Consolidated Financial Statements for the Three Months Ended March 31, 2021 and 2020 and Independent Auditors' Review Report

The engagement partners on the reviews resulting in this independent auditors' review report are Yu Feng Huang and Ming Yuan Chung.

Deloitte & Touche Taipei, Taiwan Republic of China

May 5, 2021

Notice to Readers

The accompanying consolidated financial statements are intended only to present the consolidated financial position, financial performance 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 review such consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors' review report and the accompanying consolidated financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors' review report and consolidated financial statements shall prevail.

CONSOLIDATED BALANCE SHEETS (In Thousands of New Taiwan Dollars)

	March 31, 2021 (Reviewed)		December 31, 2020 (Audited)		March 31, 2020 (Reviewed)			March 31, 2021 (Reviewed)		December 31, 2020 (Audited)		March 31, 2020 (Reviewed)
ASSETS	Amount	%	Amount	%	Amount	%	LIABILITIES AND EQUITY	Amount	%	Amount	%	Amount	%
CURRENT ASSETS							CURRENT LIABILITIES
Cash and cash equivalents (Note 6)	\$ 2,981,897	22	\$ 2,927,029	22	\$ 2,133,277	18	Short-term borrowings (Notes 19 and 32)	\$ -	-	\$ 500,000	4	\$ 500,000	4
Financial assets at fair value through profit or loss (Note 7)	300,094	2	-	-	-	-	Contract liabilities (Note 24)	98,654	1	96,240	1	73,425	1
Financial assets at amortized cost (Note 9)	57,713	-	77,662	1	86,110	1	Notes and accounts payable	239,395	2	255,318	2	243,512	2
Notes and accounts receivable, net (Notes 10 and 24)	200,614	2	199,448	1	217,397	2	Other payables (Note 20)	1,376,496	10	1,753,884	14	1,358,078	12
Accounts receivable from related parties (Notes 24 and 31)	3,293	-	2,248	-	3,584	-	Other payables to related parties (Note 31)	43,530	1	37,641	-	44,261	-
Other receivables	3,503	-	3,533	-	5,318	-	Current tax liabilities (Note 26)	791,689	6	723,261	6	371,008	3
Other receivables from related parties (Note 31)	-	-	12	-	-	-	Lease liabilities (Notes 15 and 31)	39,267	-	41,796	-	47,137	1
Inventories (Note 11)	727,185	5	689,464	5	595,128	5	Other current liabilities (Notes 20 and 31)	40,831	-	43,323	-	46,990	-
Other current assets (Note 18)	72,502	1	72,028	1	90,244	1	Current portion of long-term borrowings (Notes 19 and 32)	14,536	-	49,111	-	7,304	-
Total current assets	4,346,801	32	3,971,424	30	3,131,058	27	Total current liabilities	2,644,398	20	3,500,574	27	2,691,715	23
NON-CURRENT ASSETS							NON-CURRENT LIABILITIES
Financial assets at fair value through other comprehensive income							Long-term borrowings (Notes 19 and 32)	202,186	1	1,372,150	10	817,407	7
(Note 8)	10,090	-	9,338	-	10,527	-	Provisions (Note 21)	7,345	-	7,322	-	6,797	-
Financial assets at amortized cost (Notes 9 and 32)	13,320	-	13,320	-	15,180	-	Deferred tax liabilities (Note 26)	68,804	1	68,804	1	68,675	1
Investments accounted for using the equity method (Note 13)	6,873	-	7,115	-	6,147	-	Lease liabilities (Notes 15 and 31)	112,576	1	120,933	1	145,281	1
Property, plant and equipment (Notes 14, 32 and 33)	7,257,279	54	7,307,695	56	6,463,524	56	Other non-current liabilities (Notes 20, 22 and 31)	54,836	-	55,884	-	59,288	1
Right-of-use assets (Note 15)	189,213	2	202,113	2	232,368	2
Investment properties (Note 16)	1,465,022	11	1,467,018	11	1,473,353	13	Total non-current liabilities	445,747	3	1,625,093	12	1,097,448	10
Intangible assets (Note 17)	35,602	-	38,341	-	37,274	-
Deferred tax assets (Note 26)	10,040	-	10,872	-	12,620	-	Total liabilities	3,090,145	23	5,125,667	39	3,789,163	33
Other non-current assets (Notes 18, 22 and 31)	92,252	1	76,885	1	261,926	2
							EQUITY ATTRIBUTABLE TO OWNERS OF THE COMPANY
Total non-current assets	9,079,691	68	9,132,697	70	8,512,919	73	(Note 23)
							Share capital
							Ordinary shares	1,481,374	11	1,362,864	11	1,362,864	12
							Capital surplus	2,867,877	22	971,717	8	968,724	8
							Retained earnings
							Legal reserve	1,070,880	8	1,070,880	8	939,947	8
							Special reserve	100,752	1	100,752	1	74,671	-
							Unappropriated earnings	3,437,264	25	3,204,726	24	3,236,194	28
							Total retained earnings	4,608,896	34	4,376,358	33	4,250,812	36
							Other equity	(93,531)	(1)	(86,465)	(1)	(112,323)	(1)
							Treasury stock	-	-	-	-	(45,530)	-
							Total equity attributable to owners of the Company	8,864,616	66	6,624,474	51	6,424,547	55
							NON-CONTROLLING INTERESTS (Notes 12 and 23)	1,471,731	11	1,353,980	10	1,430,267	12
							Total equity	10,336,347	77	7,978,454	61	7,854,814	67
TOTAL	\$ 13,426,492	100	\$ 13,104,121	100	\$ 11,643,977	100	TOTAL	\$ 13,426,492	100	\$ 13,104,121	100	\$ 11,643,977	100

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

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

	For the Three Months Ended March 31
	2021		2020
	Amount	%	Amount	%
NET REVENUE (Notes 24 and 31)	\$ 1,972,200	100	\$ 2,008,922	100
COST OF GOODS SOLD (Notes 11 and 25)	(390,565)	(20)	(333,578)	(17)
GROSS PROFIT	1,581,635	80	1,675,344	83
UNREALIZED GAIN ON TRANSACTIONS WITH ASSOCIATE	(68)	-	(363)	-
ADJUSTED GROSS PROFIT	1,581,567	80	1,674,981	83
OPERATING EXPENSES (Notes 22, 25 and 31) Selling and marketing General and administrative Research and development	(979,252) (122,384) (66,123)	(50) (6) (3)	(1,034,749) (121,889) (50,723)	(51) (6) (3)
Total operating expenses	(1,167,759)	(59)	(1,207,361)	(60)
INCOME FROM OPERATIONS	413,808	21	467,620	23
NON-OPERATING INCOME AND EXPENSES (Notes 13, 25 and 31) Interest income	1,679	-	1,104	-
Other income	25,240	1	28,232	2
Other gains and losses	328	-	719	-
Finance costs	(1,617)	-	(4,253)	-
Share of profit or loss of associate	55	-	1,207	-
Total non-operating income	25,685	1	27,009	2
PROFIT BEFORE INCOME TAX	439,493	22	494,629	25
INCOME TAX EXPENSE (Note 26)	(89,204)	(4)	(99,096)	(5)
NET PROFIT FOR THE PERIOD	350,289	18	395,533	20

(Continued)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (In Thousands of New Taiwan Dollars, Except Earnings Per Share) (Reviewed, Not Audited)

	For the Three Months Ended March 31
	2021		2020
	Amount	%	Amount	%
OTHER COMPREHENSIVE INCOME (LOSS) (Note 23) Items that will not be reclassified subsequently to profit or loss: Unrealized gain (loss) on investments in equity
instruments at fair value through other comprehensive income Items that may be reclassified subsequently to profit or loss:	\$ 752	-	\$ (1,255)	-
Exchange differences on translating the financial statements of foreign operations Exchange differences on translating the financial	(7,590)	(1)	(10,028)	(1)
statements of foreign operations of associate	(228)	-	(288)	-
Other comprehensive income (loss) for the period, net of income tax	(7,066)	(1)	(11,571)	(1)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD	\$ 343,223	17	\$ 383,962	19
NET PROFIT ATTRIBUTABLE TO: Owners of the Company Non-controlling interests	\$ 232,538 117,751 \$ 350,289	12 6 18	\$ 262,697 132,836 \$ 395,533	13 7 20
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
Owners of the Company Non-controlling interests	\$ 225,472 117,751	11 6	\$ 251,126 132,836	12 7
	\$ 343,223	17	\$ 383,962	19
EARNINGS PER SHARE (Note 27) Basic earnings per share Diluted earnings per share	\$ 1.60 \$ 1.59		\$ 1.93 \$ 1.92

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

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

						Equity Attributable to Owners of the Company
								Others
	Share Capital - Ordinary Shares Share (In Thousands)	Amount	Capital Surplus	Legal Reserve	Retained Earnings Special Reserve	Unappropriated Earnings	Exchange Differences on Translating the Financial Statements of Foreign Operations	Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Comprehensive Income	Treasury Stock	Total	Non-controlling Interests	Total Equity
BALANCE AT JANUARY 1, 2020	136,286	\$ 1,362,864	\$ 968,724	\$ 939,947	\$ 74,671	\$ 2,973,497	\$ (84,506)	\$ (16,246)	\$ (45,530)	\$ 6,173,421	\$ 1,297,431	\$ 7,470,852
Net profit for the three months ended March 31, 2020	-	-	-	-	-	262,697	-	-	-	262,697	132,836	395,533
Other comprehensive income (loss) for the three months ended March 31, 2020, net of income tax	-	-	-	-	-	-	(10,316)	(1,255)	-	(11,571)	-	(11,571)
Total comprehensive income (loss) for the three months ended March 31, 2020	-	-	-	-	-	262,697	(10,316)	(1,255)	-	251,126	132,836	383,962
BALANCE AT MARCH 31, 2020	136,286	\$ 1,362,864	\$ 968,724	\$ 939,947	\$ 74,671	\$ 3,236,194	\$ (94,822)	\$ (17,501)	\$ (45,530)	\$ 6,424,547	\$ 1,430,267	\$ 7,854,814
BALANCE AT JANUARY 1, 2021	136,286	\$ 1,362,864	\$ 971,717	\$ 1,070,880	\$ 100,752	\$ 3,204,726	\$ (67,775)	\$ (18,690)	\$ -	\$ 6,624,474	\$ 1,353,980	\$ 7,978,454
Net profit for the three months ended March 31, 2021	-	-	-	-	-	232,538	-	-	-	232,538	117,751	350,289
Other comprehensive income (loss) for the three months ended March 31, 2021, net of income tax	-	-	-	-	-	-	(7,818)	752	-	(7,066)	-	(7,066)
Total comprehensive income (loss) for the three months ended March 31, 2021	-	-	-	-	-	232,538	(7,818)	752	-	225,472	117,751	343,223
Issuance of ordinary shares for cash	11,851	118,510	1,896,160	-	-	-	-	-	-	2,014,670	-	2,014,670
BALANCE AT MARCH 31, 2021	148,137	\$ 1,481,374	\$ 2,867,877	\$ 1,070,880	\$ 100,752	\$ 3,437,264	\$ (75,593)	\$ (17,938)	\$ -	\$ 8,864,616	\$ 1,471,731	\$ 10,336,347

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

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

	For the Three Months Ended March 31
	2021	2020
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax	\$ 439,493	\$ 494,629
Adjustments for:
Depreciation expenses	103,522	98,673
Amortization expenses	2,720	3,282
Net gain on financial assets at fair value through profit or loss	(94)	-
Finance costs	1,617	4,253
Interest income	(1,679)	(1,104)
Share of profit of associate	(55)	(1,207)
Loss on disposal of property, plant and equipment, net	-	30
Unrealized gain on transactions with associate	68	363
Changes in operating assets and liabilities
Notes and accounts receivable, net	(1,166)	(17,944)
Accounts receivable from related parties	(1,045)	(981)
Other receivables	286	(3,015)
Other receivables from related parties	12	-
Inventories	(37,721)	(48,684)
Other current assets	(474)	(6,577)
Contract liabilities	2,414	8,411
Notes and accounts payable	(15,923)	20,886
Other payables	(373,953)	(379,923)
Other payables to related parties	5,889	6,131
Other current liabilities	(3,908)	(15,045)
Net defined benefit liabilities	(790)	(908)
Cash generated from operations	119,213	161,270
Interest received	1,423	942
Interest paid	(1,688)	(3,602)
Income tax paid	(19,944)	(9,108)
Net cash generated from operating activities	99,004	149,502
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of financial assets at amortized cost	-	(3,720)
Proceeds from sale of financial assets at amortized cost	19,926	-
Acquisition of financial assets at fair value through profit or loss	(300,000)	-
Acquisition of property, plant and equipment	(48,611)	(285,221)
Proceeds from disposal of property, plant and equipment	-	19
Increase in refundable deposits	-	(4,625)
Decrease in refundable deposits	8	3,970
Acquisition of intangible assets	-	(4,307)
(Increase) decrease in other non-current assets	(10,245)	86
Net cash used in investing activities	(338,922)	(293,798)
		(Continued)

CONSOLIDATED STATEMENTS OF CASH FLOWS (In Thousands of New Taiwan Dollars) (Reviewed, Not Audited)

	For the Three Months Ended March 31
	2021	2020
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from short-term borrowings	\$ -	\$ 500,000
Repayments of short-term borrowings	(500,000)	(350,000)
Repayments of long-term borrowings	(1,204,539)	(1,834)
Proceeds from guarantee deposits received	504	-
Refund of guarantee deposits received	(102)	(1,700)
Repayment of the principal portion of lease liabilities	(11,910)	(10,327)
Proceeds from issuance of ordinary shares	2,014,670	-
Net cash generated from financing activities	298,623	136,139
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS	(3,837)	(4,773)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	54,868	(12,930)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	2,927,029	2,146,207
CASH AND CASH EQUIVALENTS, END OF PERIOD	\$ 2,981,897	\$ 2,133,277

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 2021 AND 2020 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise) (Reviewed, Not Audited)

1. GENERAL INFORMATION

Grape King Bio Ltd. (the "Company") was incorporated as a listed company limited by shares under the provisions of Company Act, the Securities and Exchange Act and other related regulations of the Republic of China ("ROC"). In April 1971, the Company was officially registered as Grape King Food Limited and started its operation. In 1979, the Company merged with China Fuso Seiko Pharmaceutical Industries Ltd. and was renamed as Grape King Inc. In 1981, the Company further merged with Head Fancy Cosmetics Co. Ltd. The Company's shares are listed and publicly traded on the Taiwan Stock Exchange (TWSE) since December 1982. In the annual shareholders' meeting held on June 12, 2002, the Company resolved to change its name to Grape King Bio Ltd. The Company is engaged in the production and sales of pharmaceutical preparation, patent medicine, liquid tonic, drink, healthy food, etc. The Company's registered office and main business location is at No. 402, Sec. 2, Jinling Rd., Pingzhen Dist., Taoyuan City 324, Taiwan, Republic of China.

The consolidated financial statements are presented in the Company's functional currency, the New Taiwan dollar.

2. APPROVAL OF CONSOLIDATED FINANCIAL STATEMENTS

The consolidated financial statements were approved by the Company's Board of Directors and issued on May 5, 2021.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

a. Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the "IFRSs") endorsed and issued into effect by the Financial Supervisory Commission (FSC)

The initial application of the IFRSs endorsed and issued into effect by the FSC did not have a material impact on the Company and its subsidiaries' (collectively referred to as the "Group") accounting policies.

b. New IFRSs in issue but not yet endorsed and issued into effect by the FSC

New IFRSs	Effective Date Announced by IASB (Note 1)
"Annual Improvements to IFRS Standards 2018–2020"	January 1, 2022 (Note 2)
Amendments to IFRS 3 "Reference to the Conceptual Framework"	January 1, 2022 (Note 3)
Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets	To be determined by IASB
between An Investor and Its Associate or Joint Venture"
IFRS 17 "Insurance Contracts"	January 1, 2023
Amendments to IFRS 17	January 1, 2023
	(Continued)

New IFRSs	Effective Date Announced by IASB (Note 1)
Amendments to IAS 1 "Classification of Liabilities as Current or	January 1, 2023
Noncurrent"
Amendments to IAS 1 "Disclosure of Accounting Policies"	January 1, 2023 (Note 6)
Amendments to IAS 8 "Definition of Accounting Estimates"	January 1, 2023 (Note 7)
Amendments to IAS 16 "Property, Plant and Equipment - Proceeds	January 1, 2022 (Note 4)
before Intended Use"
Amendments to IAS 37 "Onerous Contracts–Cost of Fulfilling a	January 1, 2022 (Note 5)
Contract"
	(Concluded)

• Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.
• Note 2: The amendments to IFRS 9 will be applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 "Agriculture" will be applied prospectively to the fair value measurements on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IFRS 1 "First-time Adoptions of IFRSs" will be applied retrospectively for annual reporting periods beginning on or after January 1, 2022.
• Note 3: The amendments are applicable to business combinations for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.
• Note 4: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.
• Note 5: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.
• Note 6: The amendments will be applied prospectively for annual reporting periods beginning on or after January 1, 2023.
• Note 7: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.

Amendments to IAS 1 "Disclosure of Accounting Policies"

The amendments specify that the Group should refer to the definition of material to determine its material accounting policy information to be disclosed. Accounting policy information is material if it can reasonably be expected to influence decisions that the primary users of general purpose financial statements make on the basis of those financial statements. The amendments also clarify that:

• accounting policy information that relates to immaterial transactions, other events or conditions is immaterial and need not be disclosed;
• the Group may consider the accounting policy information as material because of the nature of the related transactions, other events or conditions, even if the amounts are immaterial; and
• not all accounting policy information relating to material transactions, other events or conditions is itself material.

The amendments also illustrate that accounting policy information is likely to be considered as material to the financial statements if that information relates to material transactions, other events or conditions and:

• 1) the Group changed its accounting policy during the reporting period and this change resulted in a material change to the information in the financial statements;
• 2) the Group chose the accounting policy from options permitted by the standards;
• 3) the accounting policy was developed in accordance with IAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors" in the absence of an IFRS that specifically applies;
• 4) the accounting policy relates to an area for which the Group is required to make significant judgements or assumptions in applying an accounting policy, and the Group discloses those judgements or assumptions; or
• 5) the accounting is complex and users of the financial statements would otherwise not understand those material transactions, other events or conditions.

Except for the above impact, as of the date the consolidated financial statements were authorized for issue, the Group is continuously assessing the possible impact that the application of other standards and interpretations will have on the Group's financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Statement of compliance

These interim consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and IAS 34 "Interim Financial Reporting" as endorsed and issued into effect by the FSC. Disclosure information included in these interim consolidated financial statements is less than the disclosure information required in a complete set of annual consolidated financial statements.

b. Basis of preparation

The consolidated financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair value, and net defined benefit assets (liabilities) which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

• 1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;
• 2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and
• 3) Level 3 inputs are unobservable inputs for an asset or liability.

c. Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and the entities controlled by the Company (i.e. its subsidiaries).

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the Group.

All intra-group transactions, balances, income and expenses are eliminated in full upon consolidation. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

See Note 12, Table 5 and Table 6 for detailed information on subsidiaries (including percentages of ownership and main businesses).

d. Other significant accounting policies

Except for the following, refer to Note 4 to the consolidated financial statements for the year ended December 31, 2020.

1) Financial assets at FVTPL

Financial assets are classified as at FVTPL when such financial assets are mandatorily classified or designated as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI.

Financial assets at FVTPL are subsequently measured at fair value, and any remeasurement gains or losses on such financial assets are recognized in other gains or losses. Fair value is determined in the manner described in Note 30.

2) Retirement benefits

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

3) Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax. Interim period income taxes are assessed on an annual basis and calculated by applying to an interim period's pre-tax income the tax rate that would be applicable to expected total annual earnings.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Refer to Note 5 to the consolidated financial statements for the year ended December 31, 2020.

6. CASH AND CASH EQUIVALENTS

	March 31, 2021	December 31, 2020	March 31, 2020
Cash on hand	\$ 2,835	\$ 1,887	\$ 3,717
Checking accounts and demand deposits	1,914,182	1,595,306	1,298,972
Cash equivalents (investments with original maturities of less than 3 months) Repurchase agreements collateralized by
commercial paper	848,767	1,167,799	179,817
Repurchase agreements collateralized by bonds	216,113	162,037	650,771
	\$ 2,981,897	\$ 2,927,029	\$ 2,133,277

7. FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

	March 31, 2021	December 31, 2020	March 31, 2020
Financial assets at fair value through profit or Loss (FVTPL) - current
Financial assets mandatorily classified as at FVTPL Non-derivative financial assets - Mutual funds	\$ 300,094	\$ -	\$ -

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

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

	March 31,	December 31,	March 31,
	2021	2020	2020
Non-current - investments in equity instruments at FVTOCI
Unlisted shares FU-Sheng International Inc. (Samoa) Hsin Tung Yang Co., Ltd.	\$ 10,081 9	\$ 9,330 8	\$ 10,485 42
	\$	\$	\$
	10,090	9,338	10,527

The Company acquired ordinary shares of FU-Sheng International Inc. (Samoa) and Hsin Tung Yang Co., Ltd. for medium to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments' fair value in profit or loss would not be consistent with the Company's strategy of holding these investments for long-term purposes.

Financial assets at fair value through other comprehensive income were not pledged.

9. FINANCIAL ASSETS AT AMORTIZED COST

	March 31,	December 31,	March 31,
	2021	2020	2020
Current
Time deposits with original maturities of more	\$	\$	\$
than 3 months	57,713	77,662	86,110
Non-current
Pledged time deposit	\$	\$	\$
	13,320	13,320	15,180

Refer to Note 30 for information relating to the credit risk management and impairment of investments in financial assets at amortized cost.

Refer to Note 32 for information relating to investments in financial assets at amortized cost pledged as security.

10. NOTES AND ACCOUNTS RECEIVABLE, NET

	March 31, 2021	December 31, 2020	March 31, 2020
Notes receivable
Notes receivable - operating	\$ 10,437	\$ 17,732	\$ 9,702
Accounts receivable
At amortized cost
Gross carrying amount	193,356	184,895	211,026
Less: Loss allowance	(3,179)	(3,179)	(3,331)
	190,177	181,716	207,695
	\$ 200,614	\$ 199,448	\$ 217,397

The average credit period of sales of goods was 30-135 days. The Group adopted a policy of only dealing with entities that passed internal credit assessment and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

In order to minimize credit risk, the management of the Group has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Group reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts. In this regard, the management believes the Group's credit risk was significantly reduced.

The Group measures the loss allowance for notes and accounts receivable at an amount equal to lifetime ECLs. The expected credit losses on notes and accounts receivable are estimated using a provision matrix by reference to the past default experience of the debtor and an analysis of the debtor's current financial position, adjusted for general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the forecasted direction of economic conditions at the reporting date. As the Group's historical credit loss experience does not show significantly different loss patterns for different customer segments, the provision for loss allowance based on past due status is not further distinguished according to the Group's different customer base.

The movements of the loss allowance of notes and accounts receivable were as follows:

	March 31	For the Three Months Ended
	2021 2020
Balance at January 1 and March 31	\$ 3,179	\$ 3,331

Aging analysis of notes and accounts receivable (net) held by the Group was as follows:

Past Due nor Impaired	Within 90 Days	91 to 180 Days	Over 180 Days	Total
\$ 191,330	\$ 8,912	\$ 372	\$ -	\$ 200,614
189,899	9,074	475	-	199,448 217,397
	Neither 199,565	17,302		Past Due but not Impaired 502 28

Notes and accounts receivable were not pledged.

11. INVENTORIES

	March 31, 2021	December 31, 2020	March 31, 2020
Finished goods	\$ 245,633	\$ 206,040	\$ 179,795
Semi-finished goods and work in progress	259,596	276,903	186,073
Raw materials	174,133	162,529	197,278
Supplies	47,671	43,865	31,814
Merchandise	152	127	168
	\$ 727,185	\$ 689,464	\$ 595,128

The nature of the cost of goods sold is as follows:

	For the Three Months Ended March 31
	2021	2020
Cost of inventories sold Loss on retirement Gain from physical counts	\$ 390,565 \$ 3,213 \$ (204)	\$ 333,578 \$ 783 \$ (645)

Inventories were not pledged.

12. SUBSIDIARIES

				Proportion of Ownership
Investor	Investee	Nature of Activities	March 31, 2021	December 31, 2020	March 31, 2020
The Company	Pro-partner Inc. (Pro-partner)	Sales	60%	60%	60%
The Company	GRAPE KING INTERNATIONAL INVESTMENT INC. (BVI) (GKBVI)	Investment	100%	100%	100%
The Company	Rivershine Ltd. (Rivershine)	Sales	100%	100%	100%
The Company	Dongpu Biotech Corporation	Sales	100%	100%	100%
GKBVI	Shanghai Grape King Enterprise Co., Ltd. (Shanghai Grape King)	Manufacturing and Sales	100%	100%	100%
GKBVI	Shanghai Rivershine Ltd. (Shanghai Rivershine)	Sales	100%	100%	100%

a. Subsidiaries included in the consolidated financial statements

b. Details of subsidiaries that have material non-controlling interests

			Proportion of Ownership and Voting Rights Held by Non-controlling Interests
Name of Subsidiary	Principal Place of Business		March 31, 2021	December 31, 2020	March 31, 2020
Pro-partner	Taiwan, Republic of China		40%	40%	40%
	Non-controlling Interests	Profit (Loss) Allocated to
	For the Three Months Ended			Accumulated Non-controlling Interests
	March 31		March 31,	December 31,	March 31,
Name of Subsidiary	2021	2020	2021	2020	2020
Pro-partner	\$ 117,751	\$ 132,836	\$ 1,471,731	\$ 1,353,980	\$ 1,430,267

Summarized financial information of the Group's subsidiary that has material non-controlling interests is set out below. The summarized financial information below represents amounts before intragroup eliminations.

Pro-partner

	March 31,	December 31,	March 31,
	2021	2020	2020
Current assets Non-current assets Current liabilities Non-current liabilities	\$ 2,145,852 3,713,578 (1,988,483) (191,619)	\$ 2,133,273 3,729,824 (2,292,051) (186,095)	\$ 1,616,048 3,761,678 (1,608,633) (193,426)
Equity	\$	\$	\$
	3,679,328	3,384,951	3,575,667
Equity attributable to: Owners of the Company Non-controlling interests of Pro-partner	\$ 2,207,597 1,471,731 \$ 3,679,328	\$ 2,030,971 1,353,980 \$ 3,384,951	\$ 2,145,400 1,430,267 \$ 3,575,667

	For the Three Months Ended March 31
	2021	2020
Revenue	\$ 1,597,609	\$ 1,742,506
Profit and comprehensive income for the period	\$ 294,377	\$ 332,091
Profit and total comprehensive income attributable to: Owners of the Company Non-controlling interests of Pro-partner	\$ 176,626 117,751 \$ 294,377	\$ 199,255 132,836 \$ 332,091
Net cash (outflow) inflow from: Operating activities Investing activities Financing activities	\$ 8,864 (2,144) (10,077)	\$ 61,445 (12,541) (8,201)
Net cash inflow	\$ (3,357)	\$ 40,703

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

	March 31,	December 31,	March 31,
	2021	2020	2020
Associates that is not individually material
GK BIO INTERNATIONAL SDN. BHD.	\$	\$	\$
	6,873	7,115	6,147

Aggregate information of associates that are not individually material.

	For the Three Months Ended March 31
	2021	2020
The Company's share of:
Net income	\$ 38	\$ 1,120
Other comprehensive loss	(228)	(288)
Total comprehensive (loss) income	\$ (190)	\$ 832

The Company had neither contingent liabilities nor capital commitments to the associates as of March 31, 2021 and 2020.

Associate was not pledged.

14. PROPERTY, PLANT AND EQUIPMENT

	March 31,	December 31,	March 31,
	2021	2020	2020
Assets used by the Group	\$	\$	\$
	7,257,279	7,307,695	6,463,524

a. Assets used by the Group

	Land	Land Improvements	Buildings	Machinery and Equipment	Transportation Equipment	Leasehold Improvements	Other Equipment	Construction in Progress	Total
Cost
Balance at January 1, 2021 Additions Disposals Reclassified Effects of foreign currency exchange differences	\$ 2,964,613 - - - -	\$ 3,264 - - - -	\$ 4,321,322 1,183 (670) 101 (3,349)	\$ 1,688,023 9,455 - 17,206 (1,978)	\$ 20,889 - - - (29)	\$ 85,529 600 - - (21)	\$ 493,673 1,659 (21,079) 6,229 (144)	\$ 107,734 13,200 - (8,268) (58)	\$ 9,685,047 26,097 (21,749) 15,268 5,579
Balance at March 31, 2021	2,964,613	3,264	4,318,587	1,712,706	20,860	86,108	480,338	112,608	9,699,084
Accumulated depreciation
Balance at January 1, 2021 Depreciation expenses Disposals Effects of foreign currency	- - -	1,695 68 -	942,910 42,585 (670)	1,032,350 29,359 -	13,422 572 -	35,224 4,380 -	351,751 11,411 (21,079)	- - -	2,377,352 88,375 (21,749)
exchange differences Balance at March 31, 2021	- -	- 1,763	(1,016) 983,809	(1,009) 1,060,700	(16) 13,978	(11) 39,593	(121) 341,962	- -	(2,173) 2,441,805
Carrying amounts at January 1, 2021 Carrying amounts at	\$ 2,964,613	\$ 1,569	\$ 3,378,412	\$ 655,673	\$ 7,467	\$ 50,305	\$ 141,922	\$ 107,734	\$ 7,307,695
March 31, 2021	\$ 2,964,613	\$ 1,501	\$ 3,334,778	\$ 652,006	\$ 6,882	\$ 46,515	\$ 138,376	\$ 112,608	\$ 7,257,279
Cost
Balance at January 1, 2020 Additions Disposals Reclassified Effects of foreign currency exchange differences	\$ 2,067,958 - - - -	\$ 3,264 - - - -	\$ 3,179,557 5,010 (88) 1,121,208 (4,877)	\$ 1,284,693 5,812 (4,613) 346,083 (2,747)	\$ 18,714 951 - 1,175 (40)	\$ 48,277 - - - (32)	\$ 424,351 6,319 (803) 47,468 (226)	\$ 1,496,235 8,725 - (1,443,950) (172)	\$ 8,523,049 26,817 (5,504) 71,984 (8,094)
Balance at March 31, 2020 Accumulated depreciation	2,067,958	3,264	4,300,810	1,629,228	20,800	48,245	477,109	60,838	8,608,252
Balance at January 1, 2020 Depreciation expenses Disposals Effects of foreign currency exchange differences Balance at March 31, 2020	- - - - -	1,340 104 - - 1,444	791,071 41,887 (39) (1,409) 831,510	929,987 27,834 (4,613) (1,444) 951,764	11,166 686 - (22) 11,830	21,459 2,344 - (14) 23,789	314,493 10,877 (803) (176) 324,391	- - - - -	2,069,516 83,732 (5,455) (3,065) 2,144,728
Carrying amounts at March 31, 2020	\$ 2,067,958	\$ 1,820	\$ 3,469,300	\$ 677,464	\$ 8,970	\$ 24,456	\$ 152,718	\$ 60,838	\$ 6,463,524

The significant parts of the Group's buildings include main plants, air conditioning, electrical and waste water treatment equipment and decoration, and the related depreciation is calculated based on the economic lives as below:

	Estimated
Significant Part of Buildings	Economic Lives
Main plant	30 to 60 years
Air conditioning and electrical	5 to 22 years
Waste water treatment equipment	10 to 15 years
Decoration	15 years

No impairment assessment was performed for the three months ended March 31, 2021 and 2020 as there was no indication of impairment.

Property, plant and equipment pledged as collateral for bank borrowings is set out in Note 32.

15. LEASE ARRANGEMENTS

a. Right-of-use assets

	March 31, 2021	December 31, 2020	March 31, 2020
Carrying amounts
Land Buildings Transportation equipment Other equipment	\$ 83,298 96,788 6,974 2,153 \$ 189,213	\$ 84,382 107,418 8,008 2,305 \$ 202,113	\$ 98,873 119,240 11,494 2,761 \$ 232,368
		For the Three Months Ended March 31
		2021	2020
Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings Transportation equipment Other equipment		\$ 547 \$ 792 10,626 1,581 152	\$ 37,985 \$ 892 9,875 1,510 149

Except for the aforementioned additions and recognized depreciation, the Group did not have significant sublease or impairment of right-of-use assets during the three months ended March 31, 2021 and 2020.

b. Lease liabilities

	March 31, 2021	December 31, 2020	March 31, 2020
Carrying amounts
Current Non-current	\$ 39,267 \$ 112,576	\$ 41,796 \$ 120,933	\$ 47,137 \$ 145,281

Range of discount rate for lease liabilities was as follows:

	March 31, 2021	December 31, 2020	March 31, 2020
Land	1.02%-4.75%	1.02%-4.75%	1.00%-4.75%
Buildings	1.00%-4.75%	1.00%-4.75%	1.00%-4.75%
Transportation equipment	1.00%-1.35%	1.00%-1.35%	1.00%-4.75%
Other equipment	1.00%	1.00%	1.00%

c. Material lease-in activities and terms

The Group leases certain land, buildings and transportation equipment with lease terms of 3 to 50 years. Lease payments for the lease contract of land will be adjusted on the basis of changes in announced land value prices. The Group does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms.

d. Subleases

In addition to the sublease transactions described in Note 16, other sublease transactions are set out below.

Sublease of right-of-use assets

Shanghai Grape King entered into an operating lease agreement for a term from June 2014 to May 2034 with a non-related party. As of March 31, 2021, December 31, 2020 and March 31, 2020 Shanghai Grape King had received prepaid rents, recorded under the advances received for the period of eight years and ten months, nine years and one month and nine years and ten months, respectively. The movement schedule of prepaid rents is listed as follows:

	March 31,	December 31,	March 31,
	2021	2020	2020
Beginning balance of prepaid rent Rental income recognized in current period	\$ 41,603 (1,145)	\$ 45,423 (4,480)	\$ 45,423 (1,127)
Effects of foreign currency exchange differences	(305)	660	(514)
Ending balance of prepaid rent	\$	\$	\$
	40,153	41,603	43,782

Advances received for operating leases are as follows:

	March 31,	December 31,	March 31,
	2021	2020	2020
Other current liabilities Other non-current liabilities	\$ 4,546 35,607	\$ 4,580 37,023	\$ 4,453 39,329
Ending balance of prepaid rent	\$	\$	\$
	40,153	41,603	43,782

e. Other lease information

	For the Three Months Ended March 31
	2021	2020
Expenses relating to short-term and low-value asset leases	\$ 3,847	\$ 3,133
Total cash outflow for leases	\$ (15,757)	\$ (13,460)

The Group leases certain land, transportation equipment and other equipment which qualify as short-term leases and low-value asset leases. The Group has elected to apply the recognition exemption and thus did not recognize right-of-use assets and lease liabilities for these leases.

16. INVESTMENT PROPERTIES

	Land	Buildings	Total
Cost
Balance at January 1 and March 31, 2021	\$ 1,173,942	\$ 394,499	\$ 1,568,441
Accumulated depreciation
Balance at January 1, 2021 Depreciation expenses	\$ - -	\$ 101,423 1,996	\$ 101,423 1,996
Balance at March 31, 2021	\$ -	\$ 103,419	\$ 103,419
Carrying amounts at January 1, 2021 Carrying amounts at March 31, 2021	\$ 1,173,942 \$ 1,173,942	\$ 293,076 \$ 291,080	\$ 1,467,018 \$ 1,465,022
Cost
Balance at January 1 and March 31, 2020	\$ 1,173,942	\$ 394,499	\$ 1,568,441
Accumulated depreciation
Balance at January 1, 2020 Depreciation expenses	\$ - -	\$ 92,573 2,515	\$ 92,573 2,515
Balance at March 31, 2020	\$ -	\$ 95,088	\$ 95,088
Carrying amounts at March 31, 2020	\$ 1,173,942	\$ 299,411	\$ 1,473,353

The investment properties were leased out for 3 to 10 years. The lease contracts contain market review clauses in the event that the lessees exercise their options to extend. The lessees do not have bargain purchase options to acquire the investment properties at the expiry of the lease periods.

The maturity analysis of lease payments receivable under operating leases of investment properties as of March 31, 2021 and December 31, 2020 and March 31, 2020 was as follows:

	March 31, 2021	December 31, 2020	March 31, 2020
Year 1	\$ 14,096	\$ 13,921	\$ 15,449
Year 2	13,253	13,253	13,435
Year 3	6,680	9,966	13,235
Year 4	108	108	6,662
Year 5	108	108	90
	\$ 34,245	\$ 37,356	\$ 48,871

Except for depreciation recognized, the Group did not have significant addition, disposal, or impairment of investment properties during the three months ended March 31, 2021 and 2020. Investment properties are depreciated using the straight-line method over their estimated useful lives of 5 of 50 years.

Investment properties held by the Group are not measured at fair value while its fair value is disclosed. The determination of fair value was not performed by independent qualified professional valuers. The valuation was arrived at by reference to announced land value prices and market evidence of transaction prices for similar properties.

	March 31,	December 31,	March 31,
	2021	2020	2020
Fair value	\$	\$	\$
	1,671,509	1,686,593	1,715,535

The investment property - land listed above includes a piece of agricultural land in the amount of NT\$5,600 thousand, which has been acquired due to a settlement of doubtful accounts by the Company but registered under the name of the Company's chairman, Mr. Tseng. The Company has obtained a guaranteed note amounting to NT\$5,600 thousand from Mr. Tseng for security purpose.

Investment properties were not pledged.

17. INTANGIBLE ASSETS

	Computer Software	Trademark	Total
Cost
Balance at January 1, 2021 Effects of foreign currency exchange differences	\$ 62,698 (24)	\$ 16,070 -	\$ 78,768 (24)
Balance at March 31, 2021	\$ 62,674	\$ 16,070	\$ 78,744
Accumulated amortization
Balance at January 1, 2021 Amortization expenses Effects of foreign currency exchange differences	\$ 25,211 2,664 (5)	\$ 15,216 56 -	\$ 40,427 2,720 (5)
Balance at March 31, 2021	\$ 27,870	\$ 15,272	\$ 43,142
Carrying amounts at January 1, 2021 Carrying amounts at March 31, 2021	\$ 37,487 \$ 34,804	\$ 854 \$ 798	\$ 38,341 \$ 35,602
Cost
Balance at January 1, 2020 Additions Reclassified Effects of foreign currency exchange differences	\$ 49,002 4,307 1,490 (31)	\$ 15,049 - - -	\$ 64,051 4,307 1,490 (31)
Balance at March 31, 2020	\$ 54,768	\$ 15,049	\$ 69,817 (Continued)

	Computer Software	Trademark	Total
Accumulated amortization
Balance at January 1, 2020 Amortization expenses Effects of foreign currency exchange differences	\$ 15,197 2,301 (4)	\$ 14,068 981 -	\$ 29,265 3,282 (4)
Balance at March 31, 2020	\$ 17,494	\$ 15,049	\$ 32,543
Carrying amounts at March 31, 2020	\$ 37,274	\$ -	\$ 37,274 (Concluded)

Except for the aforementioned addition and recognized amortization, the Group did not have disposal or impairment of other intangible assets during the three months ended March 31, 2021 and 2020. Intangible assets are amortized on a straight-line basis over their estimated useful lives as follows:

Computer software	3-10 years
Trademark	4-5 years

	For the Three Months Ended March 31
	2021	2020
	\$ 1,325 1,395 \$ 2,720	\$ 1,281 2,001 \$ 3,282
March 31, 2021	December 31, 2020	March 31, 2020
\$ 27,804 1,851 36,452 6,395	\$ 30,314 1,274 34,270 6,170	\$ 51,010 3,048 33,986 2,200 \$ 90,244
\$ 26,430 25,030 12,916 2,244 (2,244) 27,876	\$ 22,044 25,050 12,160 2,244 (2,244) 17,631	\$ 217,529 26,565 7,354 2,267 (2,267) 10,478 \$ 261,926
	\$ 72,502 \$ 92,252	\$ 72,028 \$ 76,885

Overdue receivables were those expected not to be collected within a year and the Group has provided a full allowance for doubtful debts to cover them. The Group holds collateral for other receivables in the amount of NT\$2,244 thousand.

19. BORROWINGS

a. Short-term borrowings

	Interest rates (%)	March 31, 2021	December 31, 2020	March 31, 2020
Unsecured borrowings
Line of credit borrowings	1.00-1.04	\$ -	\$ 262,000	\$ 300,000
Secured borrowings
Bank loans	1.00-1.02	-	238,000	200,000
		\$ -	\$ 500,000	\$ 500,000

Refer to Note 32 for property, plant and equipment pledged as collateral for short-term borrowings.

b. Long-term borrowings

Details of long-term borrowings are as follows:

Lenders	March 31, 2021	Interest rates (%)	Maturity and terms
Secured borrowings
Secured Long-Term Loan from Taiwan Cooperative Bank	\$ 117,114	1.19	Effective from May 27, 2015 to May 27, 2035. Principal is repaid with interest payments due on a monthly basis.
Secured Long-Term Loan from Hua Nan Commercial Bank	99,608 216,722	1.02	Effective from June 8, 2020 to June 8, 2035. Principal is repaid with interest payments due on a monthly basis.
Less: Current portions	(14,536) \$ 202,186
Lenders	December 31, 2020	Interest rates (%)	Maturity and terms
Unsecured borrowings
Credit loans from Hua Nan Commercial Bank	\$ 250,000	1.12	Effective from July 27, 2020 to July 27, 2023. Interest is repayable monthly; principal is repayable at maturity. (Continued)

Lenders	December 31, 2020	Interest rates (%)	Maturity and terms
Secured borrowings
Secured Long-Term Loan from Hua Nan Commercial Bank	\$ 602,233	1.02	Effective from June 8, 2020 to June 8, 2035. Principal is repaid with interest payments due on a monthly basis.
Secured Long-Term Loan from Hua Nan Commercial Bank	350,000	1.02	Effective from July 22, 2019 to July 22, 2022. Interest is repayable monthly; principal is repayable at maturity.
Secured Long-Term Loan from Taiwan Cooperative Bank	119,028	1.19	Effective from May 27, 2015 to May 27, 2035. Principal is repaid with interest payments due on a monthly basis.
Secured Long-Term Loan from Hua Nan Commercial Bank	100,000	1.02	Effective from May 10, 2019 to May 10, 2022. Interest is repayable monthly; principal is repayable at maturity.
Less: Current portions	1,421,261 (49,111)
	\$ 1,372,150		(Concluded)
Lenders	March 31, 2020	Interest rates (%)	Maturity and terms
Unsecured borrowings
Credit loans from Hua Nan Commercial Bank	\$ 250,000	1.40	Effective from July 22, 2019 to July 22, 2022. Interest is repayable monthly; principal is repayable at maturity.
Secured borrowings
Secured Long-Term Loan from Hua Nan Commercial Bank	350,000	1.30	Effective from July 22, 2019 to July 22, 2022. Interest is repayable monthly; principal is repayable at maturity.
Secured Long-Term Loan from Taiwan Cooperative Bank	124,711	1.44	Effective from May 27, 2015 to May 27, 2035. Principal is repaid with interest payments due on a monthly basis.
Secured Long-Term Loan from Hua Nan Commercial Bank	100,000	1.30	Effective from May 10, 2019 to May 10, 2022. Interest is repayable monthly; principal is repayable at maturity.
Less: Current portions	824,711 (7,304)
	\$ 817,407

Certain land and buildings were pledged as collaterals for secured bank loans. Refer to Note 32 for details.

20. OTHER LIABILITIES

	March 31, 2021	December 31, 2020	March 31, 2020
Current
Other payables
Bonus to direct sellers	\$ 653,991	\$ 1,043,099	\$ 653,348
Bonus to employees	241,320	204,120	252,821
Salaries and incentive bonus	144,899	140,903	146,412
Bonus to directors and supervisors	34,870	29,633	36,964
Accrued VAT payable	34,462	82,255	25,333
Payables for purchases of equipment	15,566	18,426	40,864
Other accrued expenses Others	245,402	232,284	197,653
	5,986	3,164	4,683
	\$ 1,376,496	\$ 1,753,884	\$ 1,358,078
Other liabilities
Unearned rent	\$ 6,136	\$ 6,006	\$ 5,847
Guarantee deposits received	1,743	1,743	12,858
Other current liabilities	32,952	35,574	28,285
	\$ 40,831	\$ 43,323	\$ 46,990
Non-current
Guarantee deposits received	\$ 17,685	\$ 17,283	\$ 18,388
Net defined benefit liabilities	1,544	1,578	1,571
Other non-current liabilities - other	35,607	37,023	39,329
	\$ 54,836	\$ 55,884	\$\$ 59,288
21. PROVISIONS
	March 31, 2021	December 31, 2020	March 31, 2020
Non-current
Decommissioning, restoration and rehabilitation	\$ 7,345	\$ 7,322	\$ 6,797

The movements of the provision for decommissioning, restoration and rehabilitation activities were as follows:

	March 31	For the Three Months Ended
	2021	2020
Balance at January 1 Additional provisions recognized Discount rate adjustment and unwinding of discount from the	\$ 7,322 -	\$ 5,317 1,457
passage of time	23	23
Balance at March 31	\$ 7,345	\$ 6,797

The Group recognized provision for decommissioning of a factory site according to a contract.

22. RETIREMENT BENEFIT PLANS

a. Defined contribution plan

Expenses under the defined contribution plan for the three months ended March 31, 2021 and 2020 were NT\$7,911 thousand and NT\$7,598 thousand, respectively.

b. Defined benefit plans

Employee benefit expenses in respect of the Group's defined benefit retirement plans were calculated using the actuarially determined pension cost discount rate, expenses under the defined benefit plan for the three months ended March 31, 2021 and 2020 were NT\$49 thousand and NT\$47 thousand, respectively.

23. EQUITY

• a. Share capital
• 1) Ordinary shares

	March 31,	December 31,	March 31,
	2021	2020	2020
Shares authorized (in thousands of shares)	180,000	180,000	180,000
Shares authorized, par value \$10 (in	\$	\$	\$
thousands of dollars)	1,800,000	1,800,000	1,800,000
Shares issued and fully paid (in thousands of shares)	148,137	136,286	136,286
Shares issued through public	\$	\$	\$
issue	1,362,864	1,362,864	1,362,864
Shares issued through private placement	118,510	-	-
Shares issued and fully paid (in thousands	\$	\$	\$
of dollars)	1,481,374	1,362,864	1,362,864

Each share possesses one voting right and a right to receive dividends.

On January 14, 2021, the Company held the fir extraodinary shareholders' meeting and a resolution was passed to increase cash capital by issuing ordinary shares through private placement with Uni-President Enterprise Co., Ltd., a strategic investor, as the subscriber. The purpose of the capital increase is to raise funds for capital expenditures, to enrich working capital and help strengthen the capital structure. On January 14, 2021, the Company's resolved to offer for subscription and issued 11,851 thousand ordinary shares of the Company. The subscription price was \$170 per share, and a total of \$2,014,670 thousand in cash was received. The record date of cash capital increase was January 19, 2021. The rights and obligations of the shareholders of the ordinary shares issued through this private placement are the same as those of the shareholders of the Company's issued ordinary shares. However, in accordance with Article 43-8 of the Securities and Exchange Act, the ordinary shares of this private placement shall not be freely transferred within three years from the date of subscription.

b. Capital surplus

	March 31, 2021	December 31, 2020	March 31, 2020
May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1)
Additional paid-in capital Treasury share transactions	\$ 2,850,440 2,672	\$ 954,280 2,672	\$ 954,280 3,583
May only be used to offset a deficit
Convertible bonds - expired share option Treasury share transactions - share option Other (2)	150 6,749 7,866	150 6,749 7,866	150 4,260 6,451
	\$ 2,867,877	\$ 971,717	\$ 968,724

• 1) Such capital surplus may be used to offset a deficit; in addition, when the Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company's capital surplus and to once a year).
• 2) Other is unclaimed dividend.
• c. Retained earnings and dividends policy

According to the Company's Articles of Incorporation, both the Company and Pro-partner Inc. shall distribute their annual earnings, if any, in the sequence listed below.

• 1) Paying taxes;
• 2) Offsetting losses of previous years;
• 3) Setting aside as legal reserve 10% of the remaining profit;
• 4) Setting aside or reversing a special reserve in accordance with the laws and regulations; and
• 5) Any remaining profit together with any undistributed retained earnings shall be used by the Company's Board of Directors as the basis for proposing a distribution plan, which should be resolved in the shareholders' meeting for the distribution of dividends and bonuses to shareholders.

For the policies on the distribution of compensation of employees and remuneration of directors and supervisors after the amendment, refer to compensation of employees and remuneration of directors and supervisors in Note 25-h.

The Company's dividend policy shall be determined pursuant to the factors, such as the investment environment, capital requirement, domestic and overseas competition environment, current and future business development plan, as well as shareholders' interests. The distribution of shareholder dividends shall not be lower than 60% of the unappropriated earnings of the current year. However, the shareholders may resolve not to distribute dividends if the accumulated earnings were lower than 10% of the paid-in capital. Dividends can be distributed in the form of cash or share or a combination of both cash and share, out of which at least 10% of the total dividends distributed shall be in cash.

An appropriation of earnings to a legal reserve shall be made until the legal reserve equals the Company's paid-in capital. The legal reserve may be used to offset deficits. If the Company has no deficit and the legal reserve has exceeded 25% of the Company's paid-in capital, the excess may be transferred to capital or distributed in cash.

The appropriations of earnings for 2020 and 2019 that were proposed by the Board of Directors on February 25, 2021 and approved in the shareholders' meeting on May 28, 2020, were as follows:

	For the Years Ended December 31
	2020	2019
Legal reserve	\$ 127,245	\$ 130,933
Special reserve	\$ (14,287)	\$ 26,081
Cash dividends	\$ 948,079	\$ 884,210
Cash dividends per share (NT\$)	\$ 6.4	\$ 6.5

The appropriation of earnings for 2020 is subject to the resolution of the shareholders in the shareholders' meeting to be held on May 28, 2021.

Pro-Partner's appropriations of earnings for 2020 and 2019 that were approved in the shareholders' meetings on April 20, 2021 and April 14, 2020, respectively, were as follows:

	For the Years Ended December 31
	2020	2019
Legal reserve	\$ 155,664	\$ 157,328
Cash dividends Cash dividends per share (NT\$)	\$ 1,400,972 \$ 79.60	\$ 1,416,153 \$ 80.463

d. Other equity items

1) Exchange differences on translating the financial statements of foreign operations

	For the Three Months Ended March 31
	2021	2020
Balance at beginning of period Recognized for the period Exchange differences on translating the financial	\$ (67,775)	\$ (84,506)
statements of foreign operations	(7,818)	(10,316)
Balance at end of period	\$ (75,593)	\$ (94,822)

2) Unrealized gain (loss) on financial assets at FVTOCI

	For the Three Months Ended March 31
	2021	2020
Balance at beginning of period Recognized for the period	\$ (18,690)	\$ (16,246)
Unrealized gain (loss) - equity instruments	752	(1,255)
Balance at end of period	\$ (17,938)	\$ (17,501)

e. Non-controlling interests

	March 31	For the Three Months Ended
	2021	2020
Balance at beginning of period Profit for the period	\$ 1,353,980 117,751	\$ 1,297,431 132,836
Balance at end of period	\$ 1,471,731	\$ 1,430,267

f. Treasury shares

On January 3, 2017, the Company's Board of Directors resolved to buy its own shares as treasury shares for transferring to its employee. The repurchase period was from January 4, 2017 to March 3, 2017 and the number of shares to be brought back was 3,000,000 shares with the unit price interval of \$118 to \$349.5. As of the end of the repurchase period, the number of shares repurchased was 508,000 shares with the average repurchase unit price of \$179.26. The carrying value of treasury shares as of March 31, 2021 and 2020 was \$0 and \$45,530 thousand, respectively.

	Shares Transferred to Employees
Number of shares at March 31 and January 1, 2021	-
Number of shares at March 31 and January 1, 2020	254,000

Under the Securities and Exchange Act, the Company shall neither pledge treasury shares nor exercise shareholders' rights on these shares, such as the rights to dividends and to vote.

24. REVENUE

		For the Three Months Ended March 31
	2021	2020
Revenue from contracts with customers Revenue from the sale of goods	\$ 1,810,331	\$ 1,890,032
Revenue from the rendering of services	161,869	118,890
	\$ 1,972,200	\$ 2,008,922

a. Disaggregation of revenue

1) Type of goods or services and timing of revenue recognition:

For the three months ended March 31, 2021

		Reportable Segments
Type of goods or services	MLM	Distribution	ODM/OEM	Total
Sale of goods Rendering of services	\$ 1,597,609 -	\$ 160,256 -	\$ 52,466 161,869	\$ 1,810,331 161,869
	\$ 1,597,609	\$ 160,256	\$ 214,335	\$ 1,972,200
Timing of revenue recognition
Satisfied at a point in time	\$ 1,597,609	\$ 160,256	\$ 214,335	\$ 1,972,200

For the three months ended March 31, 2020

		Reportable Segments
Type of goods or services	MLM	Distribution	ODM/OEM	Total
Sale of goods Rendering of services	\$ 1,742,506 -	\$ 117,408 -	\$ 30,118 118,890	\$ 1,890,032 118,890
	\$ 1,742,506	\$ 117,408	\$ 149,008	\$ 2,008,922
Timing of revenue recognition
Satisfied at a point in time	\$ 1,742,506	\$ 117,408	\$ 149,008	\$ 2,008,922

2) Type of goods

	For the Three Months Ended March 31
	2021	2020
Type of goods
Health food ODM/OEM Beverage Others (Note)	\$ 1,653,710 214,335 49,877 54,278	\$ 1,769,537 149,008 50,021 40,356
	\$ 1,972,200	\$ 2,008,922

Note: Others include cosmetics, general food and pet food.

b. Contract balances

	March 31,	December 31,	March 31,	January 1,
	2021	2020	2020	2020
Notes and accounts	\$	\$	\$	\$
receivable, net	200,614	199,448	217,397	199,453
Accounts receivable from	\$	\$	\$	\$
related parties	3,293	2,248	3,584	2,603
Contract liabilities - current
Sale of goods	\$	\$	\$	\$
	17,145	4,801	10,281	9,503
Rendering of services	81,509	91,439	63,144	55,511
	\$	\$	\$	\$
	98,654	96,240	73,425	65,014

The changes in the balance of contract liabilities primarily resulted from the timing difference between the Group's performance and the respective customer's payment.

25. NET PROFIT (LOSS) FROM CONTINUING OPERATIONS

a. Interest income

		For the Three Months Ended March 31
	2021	2020
Financial assets at amortized cost	\$ 1,679	\$ 1,104

b. Other income

	For the Three Months Ended March 31
	2021	2020
Rental income Others	\$ 7,685 17,555	\$ 7,154 21,078
	\$ 25,240	\$ 28,232

c. Other gains and losses

	For the Three Months Ended March 31
	2021	2020
Fair value changes of financial assets and financial liabilities Financial assets mandatorily classified as at FVTPL Net foreign exchange gain Others	\$ 94 269 (35)	\$ - 791 (72)
	\$ 328	\$ 719

d. Finance costs

	For the Three Months Ended March 31
	2021	2020
Interest on bank loans	\$ 1,810	\$ 3,797
Interest on lease liabilities	481	579
Imputed interest on deposit	33	33
Unwinding of discount on provisions	23	23
Less: Amounts included in the cost of qualifying assets	(730)	(179)
	\$ 1,617	\$ 4,253

Information about capitalized interest is as follows:

	For the Three Months Ended March 31
	2021	2020
Capitalized interest amount Capitalization rate	\$ 730 1.03%	\$ 179 1.22%

e. Depreciation and amortization

	For the Three Months Ended March 31
	2021	2020
An analysis of depreciation by function
Operating costs	\$ 50,887	\$ 50,455
Operating expenses	52,635	48,218
	\$ 103,522	\$ 98,673
An analysis of amortization by function
Operating costs	\$ -	\$ -
Operating expenses	2,720	3,282
	\$ 2,720	\$ 3,282

f. Operating expenses directly related to investment properties

	For the Three Months Ended March 31
	2021	2020
Direct operating expenses from investment properties generating rental income Direct operating expenses from investment properties not	\$ 936	\$ 1,359
generating rental income	1,060	1,156
	\$ 1,996	\$ 2,515

g. Employee benefits expense

	For the Three Months Ended March 31
	2021	2020
Short-term benefits	\$ 275,298	\$ 276,015
Post-employment benefits (Note 22)
Defined contribution plan	7,911	7,598
Defined benefit plans	49	47
	7,960	7,645
Other employee benefits	4,330	4,320
Total employee benefits expense	\$ 287,588	\$ 287,980
An analysis of employee benefits expense by function
Operating costs	\$ 64,301	\$ 61,409
Operating expenses	223,287	226,571
	\$ 287,588	\$ 287,980

h. Compensation of employees and remuneration of directors and supervisors

According to the resolution of the board of directors, 6%-8% of profit of the current year is distributable as compensation of employees and no higher than 2% of profit of the current year is distributable as remuneration of directors and supervisors. However, the Company has to first offset accumulated losses, if any. For the three months ended March 31, 2021 and 2020, the compensation of employees and the remuneration of directors and supervisors are as follows:

Accrual rate

		For the Three Months Ended March 31
	2021	2020
Compensation of employees	8%	8%
Remuneration of directors and supervisors	2%	2%

Amount

	For the Three Months Ended March 31
	2021	2020
Compensation of employees	\$ 20,946	\$ 24,893
Remuneration of directors and supervisors	5,237	6,223

If there is a change in the amounts after the annual consolidated financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

The appropriations of earnings for the compensation of employees and remuneration of directors and supervisors for 2020 and 2019 that were resolved by the Company's Board of Directors on February 25, 2021 and February 24, 2020, respectively, are as shown below:

	For the Years Ended December 31
	2020	2019
	Cash	Cash
Compensation of employees	\$ 118,532	\$ 122,964
Remuneration of directors and supervisors	29,633	30,741

There is no difference between the actual amounts of compensation of employees and remuneration of directors and supervisors paid and the amounts recognized in the consolidated financial statements for the years ended December 31, 2020 and 2019.

Information on the compensation of employees and remuneration of directors and supervisors resolved by the Company's Board of Directors is available at the Market Observation Post System website of the Taiwan Stock Exchange.

26. INCOME TAXES

a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

	For the Three Months Ended March 31
		2021	2020
Current tax
In respect of the current period	\$	88,301	\$ 102,379
Deferred tax
In respect of the current period		-	-
Tax expense (income) recognized in the period for previously unrecognized tax loss, tax credit or temporary difference of
prior periods		903	(3,283)
Income tax expense recognized in profit or loss	\$	89,204	\$ 99,096

b. Income tax assessments

The tax authorities have assessed the income tax returns of the Company through 2019.

27. EARNINGS PER SHARE

Unit: NT\$ per share

		For the Three Months Ended March 31
	2021	2020
Basic earnings per share Diluted earnings per share	\$ 1.60 \$ 1.59	\$ 1.93 \$ 1.92

The earnings and weighted average number of ordinary shares outstanding used in the computation of earnings per share are as follows:

Net profit for the period

	For the Three Months Ended March 31
	2021	2020
Earnings used in the computation of basic and diluted earnings per share	\$ 232,538	\$ 262,697
Weighted average number of ordinary shares outstanding	Unit:	In thousands of shares
	For the Three Months Ended March 31
	2021	2020
Weighted average number of ordinary shares used in the computation of basic earnings per share	145,767	136,032
Effect of potentially dilutive ordinary shares Compensation of employees	528	477
Weighted average number of ordinary shares used in the

computation of diluted earnings per share 146,295 136,509

If the Company offered to settle the compensation or bonuses paid to employees in cash or shares, the Company assumed that the entire amount of the compensation or bonuses will be settled in shares, and the resulting potential shares were included in the weighted average number of shares outstanding used in the computation of diluted earnings per share, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

28. CASH FLOW INFORMATION

a. Non-cash transactions

The Group entered into the following non-cash investing and financing activities which were not reflected in the consolidated statements of cash flows for the three months ended March 31, 2021 and 2020:

	For the Three Months Ended March 31
	2021	2020
Additions of property, plant and equipment Changes in prepayments for purchase Changes in payables for purchase of equipment Change in other financial assets	\$ (26,097) (19,654) (2,860) -	\$ (26,817) (251,796) (7,472) 864
Payments for acquisition of property, plant and equipment	\$ (48,611)	\$ (285,221)

b. Changes in liabilities arising from financing activities

For the three months ended March 31, 2021

			Non-cash Changes
	January 1, 2021	Cash Flows	Lease Change	Finance Costs	Exchange Rate Impact	March 31, 2021
Short-term borrowings	\$ 500,000	\$ (500,000)	\$ -	\$ -	\$ -	\$ -
Long-term borrowings	1,421,261	(1,204,539)	-	-	-	216,722
Guarantee deposits received	19,026	402	-	-	-	19,428
Lease liabilities	162,729	(11,910)	547	481	(4)	151,843
	\$ 2,103,016	\$ (1,716,047)	\$ 547	\$ 481	\$ (4)	\$ 387,993

For the three months ended March 31, 2020

					Non-cash Changes
	January 1, 2020	Cash Flows	Lease Change		Finance Costs	Exchange Rate Impact	March 31, 2020
Short-term borrowings	\$ 350,000	\$ 150,000	\$	-	\$ -	\$ -	\$ 500,000
Long-term borrowings	826,545	(1,834)		-	-	-	824,711
Guarantee deposits received	32,946	(1,700)		-	-	-	31,246
Lease liabilities	165,670	(10,327)		36,528	579	(32)	192,418
	\$ 1,375,161	\$ 136,139	\$	36,528	\$ 579	\$ (32)	\$ 1,548,375

29. CAPITAL MANAGEMENT

The objective of the Group's capital management is maintaining a good capital structure and to ensure the ability to operate continuously, in order to provide returns to shareholders and the interests of other related parties, while maintaining the primal capital structure to reduce costs of capital. The Group's capital structure management strategies were based on the industry size of the Company and its subsidiaries, industry's future growth, product roadmaps, and changes in the external environment and other factors. The Group plans the required capacity and the necessary plant and equipment to achieve this capacity and the corresponding capital expenditure according to those strategies. The Group then calculates the required working capital and cash based on industry characteristics, and estimates the possible product margins, operating margin and cash flow. In order to determine the most appropriate capital structure, the Group takes into consideration cyclical fluctuations in industrial, product life cycle and other risk factors.

30. FINANCIAL INSTRUMENTS

a. Fair value of financial instruments not measured at fair value

The Group's management considers the book value of financial instruments that are not measured at fair value in the consolidated financial statements approximate the fair value.

• b. Fair value of financial instruments measured at fair value on a recurring basis
• 1) Fair value hierarchy

March 31, 2021	Level 1	Level 2	Level 3	Total
Financial assets at FVTPL
Mutual funds	\$ 300,094	\$ -	\$ -	\$ 300,094 (Continued)

	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Investments in equity instruments - unlisted shares	\$ -	\$ -	\$ 10,090	\$ 10,090 (Concluded)
December 31, 2020
	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Investments in equity instruments - unlisted shares	\$ -	\$ -	\$ 9,338	\$ 9,338
March 31, 2020
	Level 1	Level 2	Level 3	Total
Financial assets at FVTOCI
Investments in equity instruments - unlisted shares	\$ -	\$ -	\$ 10,527	\$ 10,527

There were no transfers between Levels 1 and 2 in the current and prior periods.

2) Reconciliation of Level 3 fair value measurements of financial instruments

For the three months ended March 31, 2021

	Financial Assets at FVTOCI
Financial Assets	Equity Instruments
Balance at beginning of period Recognized in other comprehensive income (included in unrealized gain (loss) on financial assets at FVTOCI)	\$ 9,338 752
Balance at end of period	\$ 10,090
For the three months ended March 31, 2020
Financial Assets	Financial Assets at FVTOCI Equity Instruments
Balance at beginning of period	\$ 11,782
Recognized in other comprehensive income (included in unrealized gain (loss) on financial assets at FVTOCI)	(1,255)

Balance at end of period \$ 10,527

3) Valuation techniques and inputs applied for Level 3 fair value measurement

The fair values of unlisted equity securities were determined using the market approach. The market approach is used to arrive at their fair values, for which the recent financing activities of investees, the market transaction prices of the similar companies and market conditions are considered. The significant unobservable inputs are as follows. The lower the discount for lack of marketability, the higher the fair value of the shares.

	March 31,	December 31,	March 31,
	2021	2020	2020
Discount for lack of marketability	30%	30%	30%

If the inputs to the valuation model were changed to reflect reasonably possible alternative assumptions while all the other variables were held constant, the fair value of the shares would increase (decrease) as follows:

		March 31, 2021	December 31, 2020	March 31, 2020
	Discount for lack of marketability
	1% increase	\$ (144)	\$ (133)	\$ (150)
	1% decrease	\$ 144	\$ 133	\$ 150
c.	Categories of financial instruments
		March 31, 2021	December 31, 2020	March 31, 2020
	Financial assets
	FVTPL
	Mandatorily classified as at FVTPL Financial assets at amortized cost	\$ 300,094	\$ -	\$ -
	Cash and cash equivalents	2,981,897	2,927,029	2,133,277
	Financial assets at amortized cost	71,033	90,982	101,290
	Notes and accounts receivable, net	200,614	199,448	217,397
	Accounts receivable from related parties	3,293	2,248	3,584
	Other receivables	3,503	3,533	5,318
	Other receivables from related parties Financial assets at FVTOCI	-	12	-
	Equity instruments	10,090	9,338	10,527
		\$ 3,570,524	\$ 3,232,590	\$ 2,471,393
	Financial liabilities
	Financial liabilities at amortized cost
	Short-term borrowings	\$ -	\$ 500,000	\$ 500,000
	Notes and accounts payable	239,395	255,318	243,512
	Other payables	1,376,496	1,753,884	1,358,078
	Other payables to related parties	43,530	37,641	44,261
	Long-term borrowings (current portion included)	216,722	1,421,261	824,711
		\$ 1,876,143	\$ 3,968,104	\$ 2,970,562

d. Financial risk management objectives and policies

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

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

1) 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 prices comprise currency risk (see (a) below) and interest rate risk (see (b) below).

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

There has been no change to the Group's exposure to market risks or the manner in which these risks are managed and measured.

a) Foreign currency risk

The Group's exposure to the risk of changes in foreign exchange rates relates primarily to the Group's operating activities (when revenue or expense is denominated in a different currency from the Group's functional currency) and the Group's net investments in foreign subsidiaries. The purpose of the Group's management of the exchange rate risk is for the purpose of hedging and not for profit.

The Group has certain foreign currency receivables to be denominated in the same foreign currency with certain foreign currency payables, therefore natural hedge is applied. Furthermore, as net investments in foreign subsidiaries are for strategic purposes, they are not hedged by the Group.

The carrying amounts of the Group's foreign currency denominated monetary assets and monetary liabilities (including those eliminated on consolidation) are set out in Note 34.

Sensitivity analysis

The Group is mainly exposed to the USD.

The following table details the Group's sensitivity to a 10% change in the functional currency against the relevant foreign currencies. The sensitivity analysis included only outstanding foreign currency denominated monetary items, and adjusts their translation at the end of the reporting period for a 10% change in foreign currency rates. A positive number below indicates a change in pre-tax profit associated with the functional currency strengthening 10% against the relevant currency.

	Currency USD Impact
		For the Three Months Ended
	March 31
	2021	2020
Profit or loss	\$ 13,514	\$ 12,410

b) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group is exposed to interest rate risk because entities in the Group borrow funds at both fixed and floating interest rates. The Group is also exposed to interest rate risk related to its investments in floating rate debt instruments. The risk is managed by the Group by maintaining an appropriate mix of fixed and floating rate borrowings.

The carrying amounts of the Group's financial assets and financial liabilities with exposure to interest rates at the end of the reporting period were as follows:

	March 31, 2021	December 31, 2020	March 31, 2020
Fair value interest rate risk
Financial assets	\$ 71,033	\$ 90,982	\$ 101,290
Financial liabilities	368,565	2,083,989	1,517,129
Cash flow interest rate risk Financial assets	2,974,685	2,921,465	2,125,818

Sensitivity analysis

The sensitivity analysis below was determined based on the Group's exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate assets, the analysis was prepared assuming the amount of each liability outstanding at the end of the reporting period was outstanding for the whole year.

If interest rates had been changed by 10 basis points and all other variables were held constant, the Group's pre-tax profit for the three months ended March 31, 2021 and 2020 would change by NT\$744 thousand and NT\$531 thousand, respectively, which was mainly due to fluctuations in net asset's variable interest rate.

2) Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in a financial loss to the Group. As at the end of the reporting period, the Group's maximum exposure to credit risk, which would cause a financial loss to the Group due to the failure of the counterparty to discharge its obligation, could be equal to the total of the carrying amount of the respective recognized financial assets as stated in the consolidated balance sheets.

Customer credit risk is managed by each business unit subject to the Group'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 Group's internal rating criteria etc. Certain customer's credit risk will also be managed by taking credit enhancing procedures, such as requesting for prepayment.

The Group transacts with a large number of unrelated customers and thus, credit risk is not highly concentrated.

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

3) Liquidity risk

The Group's objective is to finance its operations and mitigate the effects of fluctuations in cash flows through the use of cash and cash equivalents and highly liquid equity investments. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Group relies on bank borrowings as a significant source of liquidity. As of March 31, 2021, December 31, 2020 and March 31, 2020, the Group had available unutilized short-term bank loan facilities set out in (b) below.

a) Liquidity and interest rate risk tables for non-derivative financial liabilities

The following table details the Group's remaining contractual maturities for its non-derivative financial liabilities with agreed upon repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Group can be required to pay. The table includes both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed upon repayment dates.

March 31, 2021

	On Demand or Less than 6 Month	6-12 Months	1-2 Years	2-5 Years	5+ Years	Total
Notes and accounts payable Other payables (related	\$ 239,395	\$ -	\$ -	\$ -	\$ -	\$ 239,395
parties included) Long-term borrowings	1,296,066	101,046	22,914	-	-	1,420,026
(current portion included)	8,551	8,557	17,060	50,752	151,683	236,603
Lease liabilities	22,737	15,426	29,445	40,233	54,321	162,162
	\$ 1,566,749	\$ 125,029	\$ 69,419	\$ 90,985	\$ 206,004	\$ 2,058,186

Additional information about the maturity analysis for lease liabilities:

	Less than 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years	20+ Years
Lease liabilities	\$ 38,163	\$ 69,678	\$ 18,966	\$ 8,802	\$ 8,802	\$ 17,751

December 31, 2020

	On Demand or Less than 6 Month	6-12 Months	1-2 Years	2-5 Years	5+ Years	Total
Short-term borrowings	\$ 500,356	\$ -	\$ -	\$ -	\$ -	\$ 500,356
Notes and accounts payable Other payables (related	255,318	-	-	-	-	255,318
parties included) Long-term borrowings	1,591,625	199,900	-	-	-	1,791,525
(current portion included)	28,326	28,267	513,155	423,303	500,089	1,493,140
Lease liabilities	25,700	17,780	29,702	45,576	54,761	173,519
	\$ 2,401,325	\$ 245,947	\$ 542,857	\$ 468,879	\$ 554,850	\$ 4,213,858

Additional information about the maturity analysis for lease liabilities:

	Less than 1 Year		1-5 Years	5-10 Years	10-15 Years	15-20 Years	20+ Years
Lease liabilities	\$	43,480 \$	75,278	\$ 18,966	\$ 8,802	\$ 8,802	\$ 18,191

March 31, 2020

	On Demand or Less than 6 Month	6-12 Months	1-2 Years	2-5 Years	5+ Years	Total
Short-term borrowings	\$ 500,620	\$ -	\$ -	\$ -	\$ -	\$ 500,620
Notes and accounts payable	243,512	-	-	-	-	243,512
Other payables (related parties included)	1,265,030	111,459	25,850	-	-	1,402,339
Long-term borrowings
(current portion included)	4,624	4,673	9,345	749,369	95,005	863,016
Lease liabilities	23,185	23,844	33,824	52,459	72,952	206,264
	\$ 2,036,971	\$ 139,976	\$ 69,019	\$ 801,828	\$ 167,957	\$ 3,215,751

Additional information about the maturity analysis for lease liabilities:

		Less than 1 Year	1-5 Years	5-10 Years	10-15 Years	15-20 Years	20+ Years
	Lease liabilities	\$ 47,029	\$ 86,283	\$ 25,590	\$ 11,232	\$ 11,232	\$ 24,898
b)	Financing facilities
				March 31, 2021	December 31, 2020		March 31, 2020
	Short-term borrowings amount Amount unused		\$	1,738,000	\$ 1,188,000	\$	1,150,000

31. TRANSACTIONS WITH RELATED PARTIES

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Besides information disclosed elsewhere in the other notes, details of transactions between the Group and other related parties are disclosed as follows.

a. Related party name and category

Related Party Name	Related Party Category	Relationship with the Group
Pu Hsing Enterprise Co., Ltd. (Pu Hsing)	Other related party	A director of Pro-partner
Taipei City Pro-partner Technology and Human Development Foundation (Pro-partner Foundation)	Other related party	Pro-partner is its sole founder
Gongju Co., Ltd. (Gongju)	Other related party	Supervisor of Pro-partner (from June 3, 2018 to June 2, 2021)
Pu-Lin Ltd. (Pu-Lin)	Other related party	Related party in substance of Pro-partner
Xinlin Enterprise Co., Ltd. (Xinlin)	Other related party	Related party in substance of Pro-partner
Xinlin Investment Co., Ltd. (Xinlin Investment)	Other related party	Related party in substance of Pro-partner
GK BIO INTERNATIONAL SDN. BHD.	Associate	Investees of the Company accounted for using the equity method

b. Sales of goods

	Related Party	For the Three Months Ended March 31
Line Item	Category/Name	2021	2020
Sales	Associate Other related party	\$ 3,250 389	\$ 3,584 328
		\$ 3,639	\$ 3,912

The sales price for the related parties and the price for the third-party MLM member customers were determined based on mutual consent. There is no significant difference regarding the terms and conditions for the related parties and for the third parties.

c. Receivables from related parties

	Line Item	Related Party Category/Name	March 31, 2021	December 31, 2020	March 31, 2020
	Accounts receivable from related parties	GK BIO INTERNATIO NAL SDN. BHD.	\$ 3,293	\$ 2,248	\$ 3,584
	Other receivables from related parties	Xinlin Investment	\$ -	\$ 12	\$ -
d.	Payables to related parties
	Line Item	Related Party Category/Name	March 31, 2021	December 31, 2020	March 31, 2020
	Other payables to related parties	Pu Hsing Gongju	\$ 21,218 22,312 \$ 43,530	\$ 17,848 19,793 \$ 37,641	\$ 21,843 22,418 \$ 44,261
e.	Lease arrangements
	Line Item	Related Party Category/Name	March 31, 2021	December 31, 2020	March 31, 2020
	Lease liabilities	Pu-Lin	\$ 29,573	\$ 29,466	\$ 33,325
				For the Three Months Ended March 31
	Related Party Category			2021	2020
	Interest expense
	Other related party			\$ 106	\$ 120

The rental paid to the above related party is similar to general market rental prices, and rental is paid once every six months.

f. Other transactions with related parties

current liabilities)

Line Item	Related Party	March 31,	December 31,	March 31,
	Category/Name	2021	2020	2020
Refundable deposits	Other related party	\$ 1,068	\$ 1,068	\$ 1,068
Guarantee deposits	Other related party	\$	\$	\$
received		2	2	2
Temporary credits (classified as other current liabilities)	Associate	\$ -	\$ -	\$ 37
Advance receipts	Other related party	\$	\$	\$
(classified as other		29	29	13

	Related Party	For the Three Months Ended March 31
Line Item	Category/Name	2021	2020
Selling and marketing expenses - commissions expense	Other related party	\$ 1,310	\$ 1,330
Rental income	Other related party	\$ 3	\$ 3
Other income	Other related party	\$ 10	\$ 8

Pu Hsing and Gongju are MLM members of subsidiary. The calculation and payment terms are the same as the general membership in accordance with the regulations of Business Manual.

The rental from the above related parties and normal rental prices were similar and comparable. The term of collection was either in a monthly installment or in full at the beginning of each year.

g. Remuneration of key management personnel

	For the Three Months Ended March 31
	2021	2020
Short-term employee benefits Post-employment benefits	\$ 38,604 73	\$ 42,047 81
	\$ 38,677	\$ 42,128

The remuneration of directors and key executives, as determined by the remuneration committee, was based on the performance of individuals and market trends.

32. ASSETS PLEDGED AS COLLATERAL OR FOR SECURITY

The following assets were provided as collateral for long-term and short-term secured loans, Chinese Petroleum Corporation natural gas, leasing land and operating center from science-based parks:

	March 31,	December 31,	March 31,
	2021	2020	2020
Property, plant and equipment -	\$	\$	\$
land	3,004,629	3,004,629	2,107,974
Property, plant and equipment - building	1,040,371	1,050,018	1,072,063
Pledged time deposits (classified as financial assets at amortized cost – non-current)	13,320	13,320	15,180
	\$	\$	\$
	4,058,320	4,067,967	3,195,217

Secured bank facilities used in response to operating funds by the Group's property, plant and equipment land/building as of March 31, 2021 and December 31, 2020 and March 31, 2020, respectively, are as follows:

	March 31,	December 31,	March 31,
	2021	2020	2020
Short-term financing facilities Medium and long-term financing facilities	\$ 1,238,000 1,217,114	\$ 1,238,000 1,219,028	\$ 1,200,000 574,711
	\$	\$	\$
	2,455,114	2,457,028	1,774,711

33. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

Significant contingencies and unrecognized commitments of the Group are as follows:

• a. The Company's guarantee notes issued to banks for credit lines amounted to NT\$400,000 thousand as of March 31, 2021.
• b. Details of significant constructions in progress and outstanding contracts of property, plant and equipment as of March 31, 2021 were as follows:

Nature of Contract	Contract Amount	Amount Paid	Outstanding Balance
Plant and machinery	\$	\$	\$
	1,067,616	984,559	83,057

c. For operational needs, Pro-partner established operational bases in Taoyuan, Hsinchu, Fengyuan, Taichung, Hualien, Tainan and Kaohsiung. The information concerning the operating leases as of March 31, 2021 is listed below:

Operating Location	Lessor	Lease Periods	Monthly Rental
Taoyuan City	Taoyuan Irrigation Association	2020.02.01-2025.01.31	\$ 360
Taoyuan City	Passion Technology Co., Ltd.	2020.05.01-2025.04.30	280
Hsinchu City	Lin, Zhuang-Long, Wu, Yi-Wan	2016.11.01-2021.10.31	335
Fengyuan Dist.	Lin, Fen-Ling	2020.06.01-2023.05.31	70
Taichung City	Pu-Lin Ltd.	2007.11.01-2027.11.01	220
			(Continued)

Operating Location	Lessor	Lease Periods	Monthly Rental
Taichung City	Pu-Lin Ltd.	2010.04.01-2030.03.31	\$ 129
Hualien City	Liou, Chuen-Hou, Liou, Chuen-Lung	2019.09.01-2021.08.31	130
Tainan City	Cathay Life Insurance Co., Ltd.	2016.03.21-2021.07.31	873
Kaohsiung City	Global Intelligence Network Co., Ltd.	2020.03.01-2025.03.31	71

(Concluded)

34. SIGNIFICANT FINANCIAL ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The Group's significant financial assets and liabilities denominated in foreign currencies aggregated by the foreign currencies other than functional currencies of the entities in the Group and the related exchange rates between foreign currencies and respective functional currencies were as follows:

March 31, 2021

	Foreign Currencies	Exchange Rate	Carrying Amount
Financial assets
Monetary items USD USD	\$ 3,005 2,044	28.535(USD:NTD) 6.571(USD:CNY)	\$ 85,748 \$ 58,326
Financial liabilities
Monetary items USD	313	6.571(USD:CNY)	\$ 8,931
December 31, 2020
	Foreign Currencies	Exchange Rate	Carrying Amount
Financial assets
Monetary items USD USD	\$ 3,276 1,896	28.48(USD:NTD) 6.525(USD:CNY)	\$ 93,300 \$ 53,998
Financial liabilities

March 31, 2020

	Foreign Currencies	Exchange Rate	Carrying Amount
Financial assets
Monetary items USD USD	\$ 2,882 1,954	30.225 (USD:NTD) 7.103 (USD:CNY)	\$ 87,108 \$ 59,060
Financial liabilities
Monetary items USD	730	7.103 (USD:CNY)	\$ 22,064

For the three months ended March 31, 2021 and 2020, realized and unrealized net foreign exchange gains were NT\$269 thousand; and NT\$791 thousand, respectively. It is impractical to disclose net foreign exchange gains (losses) by each significant foreign currency due to the variety of the foreign currency transactions and functional currencies of the entities in the Group.

35. SEPARATELY DISCLOSED ITEMS

• a. Information about significant transactions:
• 1) Financing provided to others: None;
• 2) Endorsements/guarantees provided: None;
• 3) Marketable securities held (excluding investments in subsidiaries, associates and jointly controlled entities): Table 1;
• 4) Marketable securities acquired or disposed of at costs or prices of at least NT\$300 million or 20% of the paid-in capital: None;
• 5) Acquisition of individual real estate at costs of at least NT\$300 million or 20% of the paid-in capital: None;
• 6) Disposal of individual real estate at prices of at least NT\$300 million or 20% of the paid-in capital: None;
• 7) Total purchases from or sales to related parties of at least NT\$100 million or 20% of the paid-in capital: Table 2;
• 8) Receivables from related parties amounting to at least NT\$100 million or 20% of the paid-in capital: Table 3;
• 9) Trading in the derivative instruments: None;
• 10) Intercompany relationships and significant intercompany transactions: Table 4;

• b. Information on investees: Table 5;

• c. Information on investment in mainland China

• 1) The name of the investee in mainland China, the main businesses and products, its issued capital, method of investment, information on inflow or outflow of capital, percentage of ownership, net income (losses) of the investee, investment income (losses), ending balance, amount received as dividends from the investee, and the limitation on investee: Table 6.
• 2) Significant direct or indirect transactions with the investee, its prices and terms of payment and unrealized gain or loss: None;
• d. Information on 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: Table 7;

36. SEGMENTS INFORMATION

The Group determined its operating segments based on business activities with discrete financial information regularly reported through the Group's internal reporting protocols to the Group's chief operating decision maker. The Group is organized into several business units based on its marketing channels and services. As of March 31, 2021 and 2020, the Group had the following segments: MLM (Multi-level marketing), Distributors, and ODM/OEM (Original Design Manufacturer/Original Equipment Manufacturer).

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

Transfer prices between operating segment are determined at arm's length basis in a manner similar to transactions with third parties.

Segment's description: MLM is a direct seller of Pro-partner Inc., including the Company's development and manufacturing products for Pro-partner Inc., Distributors includes GRAPE KING BIO's self-owned brand products and ODM/OEM includes ODM/OEM in Taiwan and Shanghai.

Inter-segment revenues refer to transactions between segments that have been eliminated in the consolidated financial statements.

Segment profit (loss) is profit from operation, segment gross margin, segment operating revenue minus segment operating costs, minus directly attributable segment operating expense and distributable common expenses of the Group.

Adjustment/elimination: Inter-segment revenues are eliminated on consolidation and recorded under the "adjustment and elimination" column. Other adjustments and eliminations which have no significant influence, are not disclosed.

Segment revenue and results

The following was an analysis of the Group's revenue and results from continuing operations by reportable segments:

For the Three Months Ended March 31, 2021

	MLM	Distribution	ODM/OEM	Adjustment/ Elimination	Total
Revenue from external customers	\$ 1,597,609	\$ 160,256	\$ 214,335 (Note)	\$ -	\$ 1,972,200
Inter-segment revenue	311,190	46,824	33,024	(391,038)	-
Segment revenue	\$ 1,908,799	\$ 207,080	\$ 247,359	\$ (391,038)	1,972,200
Segment income	\$ 343,667	\$ 18,215	\$ 37,337	\$ 14,589	\$ 413,808

Note: ODM/OEM revenues come from external customers in Taiwan and Shanghai amounted to NT\$52,466 thousand and NT\$161,869 thousand, respectively.

For the Three Months Ended March 31, 2020

	MLM	Distribution	ODM/OEM	Adjustment/ Elimination	Total
Revenue from external customers	\$ 1,742,506	\$ 117,408	\$ 149,008 (Note)	\$ -	\$ 2,008,922
Inter-segment revenue	354,333	33,395	44,693	(432,421)	-
Segment revenue	\$ 2,096,839	\$ 150,803	\$ 193,701	\$ (432,421)	2,008,922
Segment income	\$ 386,957	\$ 9,813	\$ 54,376	\$ 16,474	\$ 467,620

Note: ODM/OEM revenues come from external customers in Taiwan and Shanghai amounted to NT\$30,118 thousand and NT\$118,890 thousand, respectively.

GRAPE KING BIO LTD. AND SUBSIDIARIES

MARKETABLE SECURITIES HELD

MARCH 31, 2021 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

						March 31, 2021
Held Company Name	Marketable Securities Type And Name	Relationship with the Company	Financial Statement Account	Shares (In Thousands)	Carrying Amount	Percentage of Ownership (%)	Fair Value	Note
Grape King Bio Ltd.	Share
	FU-Sheng International Inc. (SAMOA)	-	Financial assets at fair value through other	917,700	\$ 10,081	18.77	\$ 10,081	-
			comprehensive income - non-current
	Hsin Tung Yang Co., Ltd.	-	Financial assets at fair value through other comprehensive income - non-current	2,000	9	-	9	-
	Mutual funds
	Hua Nan Phoenix Money Market Fund	-	Financial assets at fair value through profit or loss - current	6,101,392.9	100,035	-	100,035	-
	Hua Nan Kirin Money Market Fund	-	Financial assets at fair value through profit or loss - current	8,286,377.2	100,031	-	100,031	-
	Franklin Templeton Sinoam Money Market Fund	-	Financial assets at fair value through profit or loss - current	9,584,833.14	100,028	-	100,028	-

GRAPE KING BIO LTD. AND SUBSIDIARIES

TOTAL PURCHASE FROM OR SALE TO RELATED PARTIES OF AT LEAST NT\$100 MILLION OR 20% OF THE PAID-IN CAPITAL FOR THE THREE MONTHS ENDED MARCH 31, 2021 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

		Nature of		Transaction Details				Abnormal Transaction	(Note 1)	Notes/Accounts Payable or Receivable
Company Name	Related Party	Relationship	Purchases/Sales		Amount	% to Total	Payment Terms	Unit Price	Payment Terms		Ending Balance	% to Total	Note
Grape King Bio Ltd.	Pro-partner Inc.	Subsidiary	Sales	\$	311,190	61.02	30 days after monthly closing	By contract	-	\$	144,836	58.59	Note 2
Pro-partner Inc.	Grape King Bio Ltd.	Parent company	Purchases		311,190	100.00	30 days after monthly closing	By contract	-		(144,836)	99.01	Note 2

Note 1: If the terms of transactions with the related parties are different from normal terms, the difference and the reason for the difference should be declared in the column of unit price or credit period.

Note 2: The transactions have been eliminated in the consolidated financial statements.

GRAPE KING BIO LTD. AND SUBSIDIARIES

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT\$100 MILLION OR 20% OF THE PAID-IN CAPITAL

MARCH 31, 2021

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

							Overdue	Amounts Received
Company Name	Related Party	Nature of Relationships	Ending Balance Turnover Days		Amount	Action Taken	in Subsequent Period		Allowance for Bad Debts
Grape King Bio Ltd.	Pro-partner Inc.	Subsidiary	\$	144,836	7.48	\$ -	-	\$ 144,836	\$	-

Note: The transactions have been eliminated in the consolidated financial statements.

GRAPE KING BIO LTD. AND SUBSIDIARIES

INTERCOMPANY RELATIONSHIPS AND SIGNIFICANT INTERCOMPANY TRANSACTIONS FOR THE THREE MONTHS ENDED MARCH 31, 2021 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

				Intercompany Transactions
No (Note 1)	Company Name	Counterparty	Nature of Relationship (Note 2)	Financial Statement Account	Amount	Terms	Percentage to Consolidated Net Revenue or Total Assets (Note 3)
0 0	Grape King Bio Ltd. Grape King Bio Ltd.	Pro-partner Inc. Pro-partner Inc.	1 1	Net revenue from sale of goods Accounts receivable	\$ 311,190 By contract 144,836 By contract		15.78% 1.08%

Note 1: 0 is for the parent company. Subsidiaries are numbered from Arabic numerals 1.

• Note 2: There are three types of relations between the parent company and the subsidiaries. Only categories should be identified (There is no need to declare the same interaction between the parent company and the subsidiary, or the same transaction among subsidiaries repeatedly. For example, if the parent company has declared the transaction from parent company to subsidiary, the subsidiary does not need to repeatedly declare the same transaction. If the transaction is between subsidiaries, when one subsidiary has declared the transaction, the other subsidiary does not need to declare the same transaction)
• 1) Represents the transactions from parent company to subsidiary.
• 2) Represents the transactions from subsidiary company to parent.
• 3) Represents the transactions between subsidiaries.
• Note 3: When calculating the amount of transaction as a proportion of the consolidated revenue or assets, if it is recognized as items of assets or liabilities, the ending balance should be divided by the consolidated assets; if it is recognized as income or loss, the midterm accumulated amount should be divided by the consolidated assets.
• Note 4: The so-called significant transaction refers to those amount reaching NT\$100 million or over 20% of the paid-in capital of the parent company.

GRAPE KING BIO LTD. AND SUBSIDIARIES

INFORMATIONS ON INVESTEES FOR THE THREE MONTHS ENDED MARCH 31, 2021 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

					Original Investment Amount		Balance as of March 31, 2021
Investor Company	Investee Company	Location	Main Businesses and Products	March 31, 2021	December 31, 2020	Shares	Percentage of Ownership (%)	Carrying Amount	Net Income (Losses) of the Investee	Investment Income (Losses)	Note
Grape King Bio Ltd.	GRAPE KING INTERNATIONAL INVESTMENT INC. (BVI)	BVI	Investment activities	\$ 1,198,018	\$ 1,198,018	24,890,000	100	\$ 992,731	\$ 19,918	\$ 19,504	Notes 1, 2 and 3
	Pro-partner Inc.	Taoyuan, Taiwan	Import and selling of health food, drink, cosmetics, sports apparatus, cleaning products, etc.	15,000	15,000	10,560,000	60	2,187,596	294,377	176,214	Notes 1 and 2
	Rivershine Ltd.	Taoyuan, Taiwan	Import and selling of health food, drinks, daily cosmetics, appliances, etc.	30,000	30,000	3,000,000	100	39,776	6,259	6,259	Note 2
	GK BIO INTERNATIONAL SDN. BHD.	Malaysia	Import and selling of health products	6,810	6,810	900,000	30	6,873	128	55	Note 1

Note 1: The effect from the unrealized profit of the downstream transactions on income tax, which is NT\$(833) thousand has been adjusted.

Note 2: The book value at the end of the period and the current investment gain (loss) recognized have been eliminated in the consolidated financial statements.

Note 3: The current investment gain (loss) recognized by BVI includes the current profit of Shanghai Grape King and Shanghai Rivershine.

GRAPE KING BIO LTD. AND SUBSIDIARIES

INFORMATION ON INVESTMENT IN MAINLAND CHINA FOR THE THREE MONTHS ENDED MARCH 31, 2021 (Amounts in Thousands of New Taiwan Dollars, Unless Specified Otherwise)

						Investment Flows			Accumulated
Investee Company	Main Businesses and Products	Total Amount of Paid-in Capital	Method of Investment (Note 1)		Accumulated Outflow of Investment from Taiwan as of January 1, 2021	Outflow	Inflow		Outflow of Investment from Taiwan as of March 31, 2021	Net Income (Losses) of the Investee Company	Percentage of Ownership	Investment Income (Losses) (Note 2)	Carrying Amount as of March 31, 2021	Accumulated Inward Remittance of Earnings as of March 31, 2021
Shanghai Grape King	Manufacturing and selling	USD 27,900	Note 1(2)	\$	847,672	\$ -	\$ -	\$	847,672	\$ 19,811	100%	\$ 19,397	\$ 949,222	\$ -
Enterprise Co., Ltd	capsule, tablet, related products and services.		Note 3	(USD	27,350)			(USD	27,350)	Note 2(2)B		Note 2 (2)B
Shanghai Yusong Co.,	Stock management and related	USD 4,890	Note 1(2)		26,794	-	-		26,794	-	18.77%	-	10,081	-
Ltd.	services of the thermostatic		Note 4	(USD	878)			(USD	878)	Note 2(3)		Note 2(3)	Note 2(3)
	fresh freezing warehouse.
	Shanghai Rivershine Ltd. Food distribution (except	USD 650	Note 1(2)		4,060	14,230	-		18,290	40	100%	40	18,391	-
	grain), food packaging		Note 5	(USD	150)	(USD 500)		(USD	650)	Note 2(2)B		Note 2(2)B
	materials, cosmetics					Note 8
	wholesale, import and
	export, commission agents (except auction), related
	products and services.
Dongpu Biotech	Biotechnology R&D and	RMB 5,000	Note 1(1)		23,200	-	-		23,200	(232)	100%	(232)	28,058	-
Corporation	transfer; sales of biological		Note 6	(RMB	5,000)			(RMB	5,000)	Note 2(2)B		Note 2(2)B
	products, special foods
	(health foods), food
	materials, food packaging
	materials, cosmetics, daily necessities; commission
	agents (excluding auctions);
	import and export of goods.
Shanghai Changhong	Biotechnology consultation,	USD 700	Note 1(1)		7,273	-	-		7,273	Note 7	35.1%	Note 7	Note 7	-
Biotechnology Co.,	biotechnologyR&D and	Note 7	Note 7	(USD	246)			(USD	246)
Ltd.	transfer, import and export
	of goods or transfers of
	technology, brand planning,
	corporate image and marketing planning,
	conference services, social
	and economic consulting
	services, business
	information consulting,
	self-owned equipment
	leasing, domestic cargo
	transportation agent, sales
	and online retail of knitted
	textiles, etc.

(Continued)

Accumulated Investment in Mainland China	Investment Amounts Authorized by as of March 31, 2021 Investment Commission, MOEA
\$	\$	\$
923,229	908,999	6,201,808

Note 1: The methods for engaging in investment in mainland China include the following:

• 1) Direct investment in mainland China.
• 2) Indirect investment in mainland China through companies registered in a third region (specify the name of the company in third region).
• 3) Other methods.
• Note 2: The investment income (loss) recognized in current period:
• 1. No investment income (loss) has been recognized due to the investment is still in the development stage.
• 1. The investment income (loss) was determined based on the following basis:
  2. (A) The financial report was reviewed and certified by an international accounting firm in cooperation with an accounting firm in the ROC.
  3. (B) The financial statements were reviewed by the parent company's auditors.
  4. (C) Others.
• 1. Recorded as financial assets at fair value through other comprehensive income.
• Note 3: The Company invested in Shanghai Grape King Enterprise Co., Ltd. through subsidiary GRAPE KING INTERNATIONAL INVESTMENT INC. (BVI).
• Note 4: The Company invested in Shanghai Yusong Co., Ltd. through Fu-Sheng International Inc. (SAMOA).
• Note 5: The Company indirectly invested in Shanghai Rivershine Ltd. through its subsidiary, GRAPE KING INTERNATIONAL INVESTMENT INC. (BVI).
• Note 6: The Company directly invested in Dongpu Biotech Corporation.
• Note 7: The Company prepaid NT\$7,273 thousand (US\$246 thousand) to invest in Shanghai Changhong Biotechnology Co., Ltd. which has been approved by the Investment Commision, Ministry of Economic Affairs on December 17, 2020.
• Note 8: The Company invested Shanghai Rivershine Ltd. with cash by increasing capital NT\$14,230 thousand (US\$500 thousand) through its subsidiary GRAPE KING INTERNATIONAL INVESTMENT INC. (BVI).

(Concluded)

GRAPE KING BIO LTD.

INFORMATION ON MAJOR SHAREHOLDERS March 31, 2021

	Shares
Name of Major Shareholder	Number of Shares	Percentage of Ownership (%)
Uni-President Enterprises Corp. Fubon Life Assurance Co., Ltd. Nan Shan Life Assurance Company Ltd.	11,851,000 10,757,000 7,468,000	8.00 7.26 5.04

• Note 1: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preferred shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Company as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.
• Note 2: If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by the individual truster who opened the trust account. For shareholders who declare insider shareholdings with ownership greater than 10% in accordance with the Security and Exchange Act, the shareholdings include shares held by shareholders and those delivered to the trust over which shareholders have rights to determine the use of trust property. For information relating to insider shareholding declaration, please refer to the Market Observation Post System.