GREATWALL - Annual Report 2020 | FinancialReports.eu

Stock Code:1210

GREAT WALL ENTERPRISE CO., LTD.

Financial Statements

With Independent Auditors’ Report For the Years Ended December 31, 2020 and 2019

Address: No. 3, Niao-Song 2nd Street, Yongkang District, Tainan City Telephone: 06-253-1111

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

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Report 4. Balance Sheets 5. Statements of Comprehensive Income 6. Statements of Changes in Equity 7. Statements of Cash Flows 8. Notes to the Financial Statements (1) Company history (2) Approval date and procedures of the financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Commitments and contingencies (10) Losses Due to Major Disasters (11) Subsequent Events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in mainland China (d) Major shareholders (14) Segment information 9. List of major account titles	Page
	1 2 3 4 5 6 7 8～9 9 9～10 10～26 27 27～67 67～75 75 76 76 76 76～77 78～82 82～83 83～85 86 86 87～111

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

Page

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KPMG

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

Independent Auditors’ Report

To the Board of Directors of Great Wall Enterprise Co., Ltd.:

Opinion

We have audited the financial statements of Great Wall Enterprise Co., Ltd.(“the Company”), which comprise the balance sheets as of December 31, 2020 and 2019, the statements of comprehensive income, changes in equity and cash flows for the years then ended and notes to the financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2020 and 2019, and its financial performance and its cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for Opinion

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

Key Audit Matters

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

Revenue recognition

Regarding the significant accounting policies for revenue recognition, please refer to Note 4(n) and Note 6(v) “Revenue from contracts with customers” from the financial statements.

Description of key audit matter:

Due to the industry characteristics of the Company and following the rules set by competent authorities to announce operating income monthly, revenue recognition timing risk is increased.

How the matter was addressed in our audit:

Our principal audit procedures include:

Understanding whether the accounting policies and methods for revenue recognition of the audited company are appropriate

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

3-1

Testing the Company’ s controls and transaction cycle from order to payment regarding revenue recognition
Performing substantive procedure of revenue, and sampling payments or certified documents for sale transactions
Selecting the appropriate sample size from the detail in the ending balance of the trade receivable and sending external confirmations to debtors
Assessing whether revenues are recognized in the appropriate timing
Assessing impairment of investments accounted for using equity method

Please refer to Note 4(m) Impairment of Non-financial Assets in the financial report for the accounting policy for assessing impairment of investments accounted for using equity method. For accounting assumptions, judgements and estimation uncertainty regarding assessing impairment of investment accounted for using equity method, please refer to Note 5 in the financial statement.

Description of key audit matter:

Constituent entities of subsidiaries using the equity method have continuously incurred net losses in recent years, hence the management believes that there are signs of impairment in related assets. The management adopts the value-in-use method to estimate the future discounted cash flow to evaluate the recoverable amount of the identifiable cash-generating unit to which the relevant assets belong, and considers whether to reverse or increase the previous year's set amount. The preparation of future discounted cash flow data involves significant management judgments, especially when estimating the gross profit margin and revenue growth rate and determining its appropriate discount rate. Therefore, factors such as the gross profit margin, revenue growth rate and discount rate are inherently uncertain and involve possible management bias.

How the matter was addressed in our audit:

Our principal audit procedures include:

Assessing the significant cash-generating units recognized by the management of the Company as showing signs of impairment
Comparing the main financial information used for its future discounted cash flows with relevant information in the financial budget approved by the management authority, including operating income, operating costs and operating expenses; and then comparing the financial budget prepared in the previous year with the current year’s performance in order to evaluate the accuracy of its forecasts while discussing with the management the reasons for the significant differences, and whether it has been taken into consideration in this year’s budget
Comparing the key assumptions used in estimating future discounted cash flows including the estimated long-term income growth rate and profit margin of each cash-generating unit with comparable companies in the industry and external market data, and appointing internal evaluation experts to evaluate whether the discount rate used for future cash flows falls within the range adopted by the industry
Performing sensitivity analysis on key assumptions (including income growth rate and discount rate) adopted for future discounted cash flows to evaluate the impact each cash-generating unit has on the net present value; and evaluating the impact of changes in key assumptions on the conclusions obtained and whether there is management bias.

3-2

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

Management is responsible for the preparation and fair presentation of the financial statements in accordance with Regulations Governing the Preparation of Financial Reports by Securities Issuers and IFRSs, IASs, interpretation as well as related guidance endorsed by the Financial Supervisory Commission of the Republic of China, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance (the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Financial Statements

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

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

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

3-3

Obtain sufficient and appropriate audit evidence regarding the financial information of the investment in other entities accounted for using the equity method to express an opinion on this financial statements. We are responsible for the direction, supervision and performance of the audit. We remain solely responsible for our audit opinion.

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

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

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

The engagement partners on the audit resulting in this independent auditors’ report are Tan-Tan Chung and Mei-Fang Chen.

KPMG

Taipei, Taiwan (Republic of China) March 31, 2021

Notes to Readers

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

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

(English Translation of Financial Statements and Report Originally Issued in Chinese) GREAT WALL ENTERPRISE CO., LTD.

Balance Sheets

December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Assets 1100 Cash and cash equivalents (Note 6(a)) 1110 Current financial assets at fair value through profit or loss (Note 6(b)) 1150 Notes receivable, net (Notes 6(d) and 7) 1170 Trade receivable, net (Notes 6(d) and 7)) 1210 Other receivables due from related parties (Note 7) 130x Inventories (Note 6(e)) 1400 Current biological assets (Note 6(f)) 1410 Prepayments (Note 6(g)) 1476 Other current financial assets 1479 Other current assets, others 1517 Non-current financial assets at fair value through other comprehensive income (Notes 4 and 6(c)) 1550 Investments accounted for using equity method (Note 6(h)) 1600 Property, plant and equipment (Note 6(i)) 1755 Right-of-use assets (Notes 4 and 6(j)) 1760 Investment property, net (Note 6(k)) 1830 Non-current biological assets (Note 6(f)) 1840 Deferred income tax assets (Note 6(r)) 1975 Net defined benefit asset, non-current (Note 6(q)) 1990 Other non-current assets, others (Notes 4, 6(l) and 8) Total assets	December 31, 2020 Amount % $ 290,515 1 20,454 - 861,623 3 2,441,080 8 612,228 2 1,698,474 6 934,797 3 110,565 - 23,865 - 78,745 - 7,072,346 23 2,277,088 8 11,898,268 40 7,415,968 25 213,834 1 385,466 1 187,167 1 53,379 - 105,259 - 307,066 1 22,843,495 77 $ 29,915,841 100	December 31, 2019
		Amount % 251,020 1 439 - 870,680 3 1,917,060 7 206,100 1 2,139,985 9 802,308 3 86,911 - 50,309 - 53,227 - 6,378,039 24 1,946,129 7 9,600,405 36 7,350,717 27 259,080 1 478,554 2 200,431 1 46,271 - 100,642 - 549,008 2 20,531,237 76 26,909,276 100

Liabilities and Equity Current liabilities: 2100 Short-term borrowings (Note 6(m)) 2110 Short-term notes and bills payable (Note 6(n)) 2120 Current financial liabilities at fair value through profit or loss (Note 6(l)) 2150 Notes payable (Note 7) 2170 Trade payable (Note 7) 2200 Other payables (Note 7) 2230 Current income tax liabilities 2280 Current lease liabilities (Note 6(o)) 2399 Other current liabilities, others (Note 7) Non-Current liabilities: 2570 Deferred income tax liabilities (Note 6(r)) 2580 Non-current lease liabilities (Note 6(o)) 2645 Guarantee deposits received 2670 Other non-current liabilities, others Total liabilities Equity attributable to owners of parent: (Note 6(s)) 3110 Ordinary share 3200 Capital surplus 3300 Retained earnings (Note 6(s)) 3400 Other equity interest 3500 Treasury shares Total equity Total liabilities and equity	December 31, 2020		December 31, 2019 Amount % 4,116,166 16 1,800,000 7 69,844 - 375,183 1 694,480 3 686,627 3 220,504 1 45,908 - 213,941 1 8,222,653 32 53,287 - 214,969 1 69,042 - 122,195 - 459,493 1 8,682,146 33 8,273,391 31 3,011,373 11 6,259,370 23 902,128 3 (219,132) (1) 18,227,130 67 26,909,276 100
	Amount %
	$ 4,638,406 15 1,700,000 6 23,199 - 30,369 - 1,483,545 5 778,066 3 258,475 1 46,575 - 338,746 1 9,297,381 31 69,203 - 170,194 1 75,790 - 122,195 - 437,382 1 9,734,763 32 8,273,391 28 3,179,626 11 7,562,982 25 1,384,211 5 (219,132) (1) 20,181,078 68 $ 29,915,841 100

See accompanying notes to financial statements.

(English Translation of Financial Statements Originally Issued in Chinese) GREAT WALL ENTERPRISE CO., LTD.

Statements of Comprehensive Income

For the years ended December 31, 2020 and 2019

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

4000 Operating revenue (Notes 6(v) and 7) 5000 Operating costs (Notes 6(e) and 7) 5900 Gross profit from operations 6000 Operating expenses: 6100 Selling expenses 6200 Administrative expenses 6300 Research and development expenses 6450 Expected credit impairment loss (Note 6(d)) Total operating expenses 6900 Net operating income 7000 Non-operating income and expenses: (Notes 6(w) and 7) 7100 Interest income 7020 Other gains and losses, net 7050 Finance costs 7070 Share of profit (loss) of associates and joint ventures accounted for using equity method Total non-operating income and expenses 7900 Profit from continuing operations before tax 7950 Less: Income tax expenses (Note 6(r)) Profit 8300 Other comprehensive income (loss): 8310 Items that may not be subsequently reclassified to profit or loss 8311 Gains (losses) on remeasurements of defined benefit plans 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Items that may not be subsequently reclassified to profit or loss 8360 Items that may be subsequently reclassified to profit or loss 8361 Exchange differences on translation of foreign financial statements 8399 Income tax related to components of other comprehensive income that will be reclassified to profit or loss Items that may be subsequently reclassified to profit or loss 8300 Other comprehensive income Total comprehensive income Basic earnings per share Basic earnings per share (NT dollars) Diluted earnings per share (NT dollars)	2020 Amount % $ 27,173,338 100 23,121,741 85 4,051,597 15 1,507,123 6 478,122 2 91,346 - 24,290 - 2,100,881 8 1,950,716 7 9,076 - 419,117 2 (78,141) - 1,272,239 5 1,622,291 7 3,573,007 14 450,936 2 3,122,071 12 2,160 - 384,312 1 473 - 385,999 1 97,771 - - - 97,771 - 483,770 1 $ 3,605,841 13 $ 3.99 $ 3.98	2019 Amount % 27,785,090 100 23,991,737 86 3,793,353 14 1,508,256 5 416,853 2 94,237 - 24,840 - 2,044,186 7 1,749,167 7 7,448 - 228,005 1 (80,193) - 777,315 3 932,575 4 2,681,742 11 398,141 1 2,283,601 10 3,505 - 411,124 1 490 - 414,139 1 (271,538) (1) - - (271,538) (1) 142,601 - 2,426,202 10 2.93 2.92

See accompanying notes to financial statements.

(English Translation of Financial Statements Originally Issued in Chinese) GREAT WALL ENTERPRISE CO., LTD.

Statements of Changes in Equity

For the years ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Share capital	Capital surplus		Retained	earnings		O	O	her equity intere	t	Treasury shares	Total equity
						Exchange differences on translation of foreign financial statements		Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income	Total other equity interest
Ordinary shares		Legal reserve	Special reserve	Unappropriated retained earnings	Total retained earnings
$ 7,879,420 - - - - 393,971 - - - - - 8,273,391 - - - - - - - - $ 8,273,391	2,595,445	2,053,459	42,994	3,444,626	5,541,079		(627,977) - (271,538) (271,538) - - - - - - - (899,515) - 97,771 97,771 - - - - - (801,744)	1,390,519	762,542	(306,199) - - - - - - 87,067 - - - (219,132) - - - - - - - - (219,132)	16,472,287
	- -	- -	- -	2,283,601 3,015	2,283,601 3,015			- 411,124	- 139,586		2,283,601 142,601
	-	-	-	2,286,616	2,286,616			411,124	139,586		2,426,202
		201,184 - - - - - -	- - - - - - -					- - - - - - -	- - - - - - -		- - (1,181,913) 450,741 (10,749) 5,758 64,804
									902,128 - 482,083		18,227,130 3,122,071 483,770
									482,083		3,605,841
									- - - - -		- (1,820,146) 37,539 30,917 99,797
									1,384,211		20,181,078

See accompanying notes to financial statements.

(English Translation of Financial Statements and Report Originally Issued in Chinese) GREAT WALL ENTERPRISE CO., LTD.

Statements of Cash Flows

For the years ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from operating activities: Profit before tax Adjustments: Adjustments to reconcile profit (loss): Depreciation expense Amortization expense Expected credit impairment loss Net loss (gain) on financial assets or liabilities at fair value through profit or loss Interest expense Interest income Dividend income Share of loss (profit) of subsidiaries, associates and joint ventures accounted for using equity method Gain on disposal of property, plant and equipment Net (reproductive) death changes in biological assets Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities: Decrease in notes receivable (Increase) decrease in trade receivable Decrease (increase) in inventories Decrease in biological assets Increase in prepayments (Increase) decrease in other current assets Decrease (increase) in other financial assets Increase in deferred debits (Decrease) increase in notes payable Increase (decrease) in trade payable Increase in other payable (Decrease) increase in other current liabilities Total changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Interest paid Income taxes paid Net cash flows from operating activities Cash flows used in investing activities: Proceeds from disposal of financial assets at fair value through other comprehensive income Acquisition of investments accounted for using equity method Proceeds from capital reduction of financial assets at fair value through other comprehensive income Proceeds from capital reduction of investments accounted for using equity method Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Increase in other receivables due from related parties Decrease (increase) in other non-current assets Dividends received Net cash flows used in investing activities Cash flows used in financing activities: Increase in short-term loans (Decrease) increase in short-term notes and bills payable Increase in guarantee deposits received Payment of lease liabilities Increase in other non-current liabilities Cash dividends paid Net cash flows (used in) from financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end of period	2020 $ 3,573,007 460,928 16,709 24,290 (66,660) 78,141 (9,076) (81,077) (1,272,239) (27,535) (2,327,245) (3,203,764) 9,057 (548,310) 441,511 2,208,020 (23,654) (25,518) 26,444 (2,254) (344,814) 789,065 93,588 (9,195) 2,613,940 (589,824) 2,983,183 9,076 (80,290) (404,630) 2,507,339 2,190 (1,115,518) 506 65,000 (1,121,361) 761,349 (406,128) 225,233 422,449 (1,166,280) 522,240 (100,000) 6,748 (44,406) 134,000 (1,820,146) (1,301,564) 39,495 251,020 $ 290,515	2019 2,681,742 512,222 - 24,840 74,760 80,193 (7,448) (82,270) (777,315) (22,678) (2,722,299) (2,919,995) 212,454 22,651 (394,256) 2,692,188 (62,487) 12,714 (3,039) (5,420) 365,398 (462,693) 102,151 52,650 2,532,311 (387,684) 2,294,058 7,448 (80,404) (338,683) 1,882,419 - (659,490) - - (2,494,950) 115,887 70,600 (80,226) 318,110 (2,730,069) 1,193,488 900,000 2,123 (47,237) 61,000 (1,181,913) 927,461 79,811 171,209 251,020

See accompanying notes to financial statements.

(English Translation of Financial Statements Originally Issued in Chinese) GREAT WALL ENTERPRISE CO., LTD.

Notes to the Financial Statements

For the years ended December 31, 2020 and 2019

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

(1) Company history

GREAT WALL ENTERPRISE CO., LTD. (the “Company”) was incorporated on December 28, 1960 as a company limited by shares under the Company Act of the Republic of China (R.O.C). The address of the Company's registered office is No. 3, Niao-Song 2nd Street, Yongkang District, Tainan City. The main business activities of the Company are as follows:

(a) Procurement, transportation, sale, oil production, and oil processing of vegetable oil seeds, dried shredded coconut, and rice bran.
(b) Procurement, transportation, marketing, manufacturing, processing, wholesale and retail of vegetable oil and its by-products, miscellaneous grains, fertilizers, feeds, bran, soybean cakes, soybean flour and slurry powder.
(c) Processing, procurement, transportation, marketing, wholesale, and retail related to oil, flour, corn flour, fertilizer, feed, miscellaneous grains, grains, bran, noodles, instant noodles, instant rice flour, biscuits, bread, canned food, dairy products, ice products, juices, beverages, and other related foods.
(d) Seedling procurement and sales.
(e) Livestock and its related processed food manufacturing and sales.
(f) Import, export, and sale of alcohol.
(g) Procurement, transportation, and sale of wheat.
(h) Sale of animal-used medicine and western medicine.
(i) Supermarket operations.
(j) Processing, manufacturing, sewing, and sourcing of various packaging supplies (including metal, alloy, plastic, paper, cloth, wooden cans, barrels, boxes, bags, etc.).
(k) Frozen prepared food and frozen and refrigerated food processing, manufacturing and trading.
(l) Electrical slaughtering of poultry and meat processing, manufacturing, and trading.
(m) Warehousing for the businesses previously listed.
(n) Imports and exports for the businesses previously listed.
(o) Commissioning constructing companies to build national residential and commercial buildings for sale and for rent.
(p) A401040 Livestock farming.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(q) C199990 Other food manufacturing not elsewhere classified. (Liquid egg, egg powder, premium egg, braised egg, iron egg, tea egg, salted fish, brocade, egg roll sheet, steamed egg, poached egg, egg tofu, meat substitute made from egg).
(r) C802010 Fertilizer manufacturing.
(s) A102041 Recreation agriculture.
(t) F501060 Restaurants.
(u) All businesses items that are not prohibited or restricted by law, except those that are subject to special approval.

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

These financial statements were authorized for issue by the Board of Directors on March 31, 2021.

(3) New standards, amendments and interpretations adopted:

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

The Company has initially adopted the following new amendments, which do not have a significant impact on its financial statements, from January 1, 2020:

●Amendments to IFRS 3 “Definition of a Business”
●Amendments to IFRS 9, IAS39 and IFRS7 “Interest Rate Benchmark Reform”
●Amendments to IAS 1 and IAS 8 “Definition of Material”
●Amendments to IFRS 16 “COVID-19-Related Rent Concessions”
(b) The impact of IFRS issued by the FSC but not yet effective

The Company assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2021, would not have a significant impact on its financial statements:

●Amendments to IFRS 4 “Extension of the Temporary Exemption from Applying IFRS 9”
－
●Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform Phase 2”

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

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

●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”
●Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
－
●Amendments to IAS 16 “Property, Plant and Equipmentt Proceeds before Intended Use”
－
●Amendments to IAS 37 “Onerous Contracts Cost of Fulfilling a Contract”
●Annual Improvements to IFRS Standards 2018-2020
●Amendments to IFRS 3 “Reference to the Conceptual Framework”
●Amendments to IAS 1 “Disclosure of Accounting Policies”
●Amendments to IAS 8 “Definition of Accounting Estimates”

(4) Summary of significant accounting policies:

The significant accounting policies presented in the financial statements are summarized below. The following accounting policies were applied consistently throughout the periods presented in the financial statements.

(a) Statement of compliance

These financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(b) Basis of preparation
(i) Basis of measurement

Except for the following significant accounts, the financial statements have been prepared on a historical cost basis:

1) Financial instruments at fair value through profit or loss are measured at fair value;
2) Financial assets at fair value through other comprehensive income are measured at fair value;
3) Biological assets are measured at fair value less costs to sell;
4) The defined benefit liabilities (assets) are measured at fair value of the pension fund assets less the present value of the defined benefit obligation, limited as explained in note 4(o).

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(ii) Functional and presentation currency

The functional currency of each entity is determined based on the primary economic environment in which the entity operates. The financial statements are presented in New Taiwan Dollar (NTD), which is the Company’s functional currency. All financial information presented in NTD has been rounded to the nearest thousand.

(c) Foreign currencies
(i) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of the Company at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date.

Non-monetary items, assets and liabilities denominated in foreign currencies that are measured at fair value are retranslated into the functional currencies using the exchange rate at the date that the fair value was determined. Non monetary items denominated in a foreign currency that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences arising on retranslation are generally recognized in profit or loss, except for those differences relating to the following, which are recognized in other comprehensive income:

1) An investment in equity securities designated as at fair value through other comprehensive income;
2) A financial liability designated as a hedge of the net investment in a foreign operation to the extent that the hedge is effective

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated into the reporting currency at the exchange rates at the reporting date. The income and expenses of foreign operations, excluding foreign operations in hyperinflationary economies, are translated into the presentation currency at the average exchange rate. Exchange differences are recognized in other comprehensive income.

When a foreign operation is disposed of such that control, significant influence, or joint control is lost, the cumulative amount in the translation reserve related to that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. When the Company disposes of only part of its interest in a subsidiary that includes a foreign operation while retaining control, the relevant proportion of the cumulative amount is reattributed to non controlling interests. When the Company disposes of only part of its investment in an associate or joint venture that includes a foreign operation while retaining significant influence or joint control, the relevant proportion of the cumulative amount is reclassified to profit or loss.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

When the settlement of a monetary receivable from or payable to a foreign operation is neither planned nor likely to occur in the foreseeable future, foreign exchange gains and losses arising from such a monetary item that are considered to form part of the net investment in the foreign operation are recognized in other comprehensive income.

(d) Classification of current and non-current assets and liabilities

An asset is classified as current under one of the following criteria, and all other assets are classified as non current.

(i) It is expected to be realized, or intended to be sold or consumed, in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is expected to be realized within twelve months after the reporting period; or
(iv) The asset is cash or a cash equivalent (as defined in IAS 7) unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

A liabiltity is classified as current under one of the following criteria, and all other liabilities are classified as non-current. An entity shall classify a liability as current when:

(i) It is expected to be settled in the normal operating cycle;
(ii) It is held primarily for the purpose of trading;
(iii) It is due to be settled within twelve months after the reporting period; or
(iv) The Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by issuing equity instruments do not affect its classification.
(e) Cash and cash equivalents

Cash comprises cash on hand and demand deposits. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Time deposits which meet the above definition and are held for the purpose of meeting short term cash commitments rather than for investment or other purposes should be recognized as cash equivalents.

Bank overdrafts that are repayable on demand and form an integral part of the Company’ s cash management are included as a component of cash and cash equivalents for the purpose of the statement of cash flows.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(f) Financial instruments

Trade receivables and debt securities issued are initially recognized when they are originated. All other financial assets and financial liabilities are initially recognized when the Company becomes a party to the contractual provisions of the instrument. A financial asset (unless it is a trade receivable without a significant financing component) or financial liability is initially measured at fair value plus, for an item not at fair value through profit or loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue. A trade receivable without a significant financing component is initially measured at the transaction price.

(i) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

On initial recognition, a financial asset is classified as measured at: amortized cost; Fair value through other comprehensive income (FVOCI) – debt investment; FVOCI – equity investment; or FVTPL. Financial assets are not reclassified subsequent to their initial recognition unless the Company changes its business model for managing financial assets, in which case all affected financial assets are reclassified on the first day of the first reporting period following the change in the business model.

1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as at FVTPL:

． it is held within a business model whose objective is to hold assets to collect contractual cash flows; and
． its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

These assets are subsequently measured at amortized cost, which is the amount at which the financial asset is measured at initial recognition, plus/minus, the cumulative amortization using the effective interest method, adjusted for any loss allowance. Interest income, foreign exchange gains and losses, as well as impairment, are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

2) Fair value through other comprehensive income (FVOCI)

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

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

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment’ s fair value in other comprehensive income. This election is made on an instrument-by-instrument basis.

Debt investments at FVOCI are subsequently measured at fair value. Interest income calculated using the effective interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net gains and losses are recognized in other comprehensive income. On derecognition, gains and losses accumulated in other comprehensive income are reclassified to profit or loss.

Equity investments at FVOCI are subsequently measured at fair value. Dividends are recognized as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognized in other comprehensive income and are never reclassified to profit or loss.

Dividend income is recognized in profit or loss on the date on which the Company’s right to receive payment is established.

3) Fair value through profit or loss (FVTPL)

All financial assets not classified as amortized cost or FVOCI described as above are measured at FVTPL, including derivative financial assets. On initial recognition, the Company may irrevocably designate a financial asset, which meets the requirements to be measured at amortized cost or at FVOCI, as at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise.

These assets are subsequently measured at fair value. Net gains and losses, including any interest or dividend income, are recognized in profit or loss.

4) Business model assessment

The Company makes an assessment of the objective of the business model in which a financial asset is held at portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes:

． the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether management’ s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realizing cash flows through the sale of the assets;
． how the performance of the portfolio is evaluated and reported to the Company’ s management;
． the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed;
． the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, and are consistent with the Company’s continuing recognition of the assets.

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.

5) Assessment of whether contractual cash flows are solely payments of principal and interest

For the purposes of this assessment, ‘ principal’ is defined as the fair value of the financial assets on initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs, as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers:

． contingent events that would change the amount or timing of cash flows;
． terms that may adjust the contractual coupon rate, including variable rate features;
．prepayment and extension features；and
．terms that limit the Company’ s claim to cash flows from specified assets(e.g. nonrecourse features)
6) Impairment of financial assets

The Company recognizes loss allowances for expected credit losses (ECL) on financial assets measured at amortized cost (including cash and cash equivalents, amortized costs, notes and trade receivables, other receivables, guarantee deposit paid and other financial assets).

The Company measures loss allowances at an amount equal to lifetime ECL, except for the following which are measured as 12-month ECL:

．debt securities that are determined to have low credit risk at the reporting date；and
． other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowance for trade receivables and contract assets are always measured at an amount equal to lifetime ECL.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Company considers reasonable and supportable information that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis based on the Company’ s historical experience and informed credit assessment as well as forwardlooking information.

The Company assumes that the credit risk on a financial asset has increased significantly if it is more than 90 days past due.

The Company considers a financial asset to be in default when the financial asset is more than 365 days past due or the debtor is unlikely to pay its credit obligations to the Company in full.

The Company considers a debt security to have low credit risk when its credit risk rating is equivalent to the globally understood definition of ‘ investment grade which is considered to be BBB- or higher per Standard & Poor’s, Baa3 or higher per Moody’s or twA or higher per Taiwan Ratings’.

Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a financial instrument.

12-month ECLs are the portion of ECLs that result from default events that are possible within the 12 month after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

The maximum period considered when estimating ECLs is the maximum contractual period over which the Company is exposed to credit risk.

ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

At each reporting date, the Company assesses whether financial assets carried at amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is ‘ credit-impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial assets is credit-impaired includes the following observable data:

． significant financial difficulty of the borrower or issuer;
． a breach of contract such as a default or being more than 90 days past due;
． the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;
． it is probable that the borrower will enter bankruptcy or other financial reorganization; or

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

． the disappearance of an active market for a security because of financial difficulties.

Loss allowances for financial assets measured at amortized cost are deducted from the gross carrying amount of the assets.

The gross carrying amount of a financial asset is written off when the Company has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For individual customers, the Company has a policy of writing off the gross carrying amount when the financial asset is 365 days past due based on historical experience of recoveries of similar assets. For corporate customers, the Company individually makes an assessment with respect to the timing and amount of write-off based on whether there is a reasonable expectation of recovery. The Company expects no significant recovery from the amount written off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

7) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

When the consolidated company signs a transaction to transfer financial assets, if it retains all or almost all risks and rewards of ownership of the transferred assets, they will continue to be recognized on the balance sheet.

(ii) Financial liabilities and equity instruments

1) Classification of debt or equity

Debt and equity instruments issued by the Company are classified as financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

2) Equity instrument

An equity instrument is any contract that evidences residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued are recognized as the amount of consideration received, less the direct cost of issuing.

3) Treasury shares

When shares recognized as equity are repurchased, the amount of the consideration paid, which includes directly attributable costs, is recognized as a deduction from equity. Repurchased shares are classified as treasury shares. When treasury shares are sold or reissued subsequently, the amount received is recognized as an increase in equity, and the resulting surplus or deficit on the transaction is recognized in capital surplus or retained earnings (if the capital surplus is not sufficient to be written down).

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

4) Financial liabilities

Financial liabilities are classified as measured at amortized cost or FVTPL. A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognized in profit or loss.

Other financial liabilities are subsequently measured at amortized cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognized in profit or loss. Any gain or loss on derecognition is also recognized in profit or loss.

5) Derecognition of financial liabilities

The Company derecognizes a financial liability when its contractual obligations are discharged, cancelled, or expired. The Company also derecognizes a financial liability when its terms are modified and the cash flows of the modified liability are substantially different, in which case a new financial liability based on the modified terms is recognized at fair value.

On derecognition of a financial liability, the difference between the carrying amount of a financial liability extinguished and the consideration paid (including any non-cash assets transferred or liabilities assumed) is recognized in profit or loss.

6) Offsetting of financial assets and liabilities

Financial assets and financial liabilities are offset and the net amount presented in the statement of balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realize the asset and settle the liability simultaneously.

(iii) Derivative financial instruments

The Company holds derivative financial instruments to hedge its foreign currency and interest rate exposures. Embedded derivatives are separated from the host contract and accounted for separately if the host contract is not a financial asset and certain criteria are met. Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are measured at fair value, and changes therein are generally recognized in profit or loss.

(g) Inventories

Inventories are measured at the lower of cost and net realizable value. The cost of inventories is calculated using the weighted average method, and includes expenditure incurred in acquiring the inventories, production or conversion costs, and other costs incurred in bringing them to their present location and condition. In the case of manufactured inventories and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.

Net realizable value is the estimated selling price in the ordinary course of business, less the estimated costs of completion and selling expense.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

The cost of inventories transferred from biological assets is its fair value less costs to sell at the date of harvest.

(h) Biological assets

Biological assets are measured at fair value less costs to sell on initial recognition and at the end of each reporting period. Costs to sell are the incremental costs directly attributable to the disposal of the assets, excluding finance costs and income taxes. Gains and losses arising on initial recognized of biological assets at fair value less costs to sell and from changes in fair value less costs to sell of biological assets are recognized in profit or loss for the period in which they arise.

(i) Investments in subsidiaries

When preparing the financial report, the Company adopts the equity method to evaluate investee companies with control. Under the equity method, the current profit and loss and other comprehensive profit and loss of the financial report are prepared on the basis of the consolidated financial report. The profit and loss and other comprehensive profit and loss in the financial report attributable to the parent company is the same as in the consolidated financial statement. The same applies to the equity attributable to the parent company.

Changes in equity of the subsidiary by the Company that do not result in a loss of control shall be treated as equity transactions with the owner.

(j) Investment property

Investment property is property held either to earn rental income or for capital appreciation or for both, but not for sale in the ordinary course of business, use in the production or supply of goods or services, or for administrative purposes. Investment property is measured at cost on initial recognition, and subsequently at cost, less accumulated depreciation and accumulated impairment losses. Depreciation expense is calculated based on the depreciation method, useful life, and residual value which are the same as those adopted for property, plant and equipment.

Any gain or loss on disposal of an investment property (calculated as the difference between the net proceeds from disposal and the carrying amount) is recognized in profit or loss.

Rental income from investment property is recognized as other revenue on a straight-line basis over the term of the lease. Lease incentives granted are recognized as an integral part of the total rental income, over the term of the lease.

(k) Property, plant and equipment

(i) Recognition and measurement

Items of property, plant and equipment are measured at cost, which includes capitalized borrowing costs less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognized in profit or loss.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(ii) Reclassification to investment properties

When a property for self-use becomes an investment property, said property should be reclassified as an investment property based on the book value at the time of change.

(iii) Subsequent expenditure

Subsequent expenditure is capitalized only if it is probable that the future economic benefits associated with the expenditure will flow to the Company.

(iv) Depreciation

Depreciation is calculated on the cost of an asset less its residual value and is recognized in profit or loss on a straight line basis over the estimated useful lives of each component of an item of property, plant and equipment.

Land is not depreciated.

The estimated useful lives of property, plant and equipment for current and comparative periods are as follows:

Buildings	2 - 60 years
Plant and equipment	2 - 60 years
Transportation equipment	3 - 10 years
Other equipment	2 - 25 years

Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted if appropriate.

(l) Leases

(i) Identifying a lease

At inception of a contract, the Company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Company assesses whether:

1) the contract involves the use of an identified asset – this may be specified explicitly or implicitly, and should be physically distinct or represent substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified; and
2) the customer has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

3) the customer has the right to direct the use of the asset throughout the period of use only if either:
． the customer has the right to direct how and for what purpose the asset is used throughout the period of use; or
． the relevant decisions about how and for what purpose the asset is used are predetermined and:
- the customer has the right to operate the asset throughout the period of use, without the supplier having the right to change those operating instructions; or
- the customer designed the asset in a way that predetermines how and for what purpose it will be used throughout the period of use.

On the lease establishment date or when reassessing whether the contract includes a lease, the company allocates the consideration in the contract to individual lease components based on the relative individual price. However, when leasing land and buildings, the company chose not to distinguish between non-lease components and treat lease components and non-lease components as a single lease component.

(ii) As a lessee

The Company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the right-of-use asset or the end of the lease term. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be reliably determined, the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate.

Lease payments included in the measurement of the lease liability comprise the following:

1) fixed payments, including in-substance fixed payments;
2) variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
3) amounts expected to be payable under a residual value guarantee; and
4) payments for purchase or termination options that are reasonably certain to be exercised.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

The lease liability is measured at amortized cost using the effective interest method. It is remeasured when:

1) there is a change in future lease payments arising from the change in an index or rate; or
2) there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee; or
3) there is a change in the lease term resulting from a change of its assessment on whether it will exercise an option to purchase the underlying asset; or
4) there is a change of its assessment on whether it will exercise a extension or termination option; or
5) there is any lease modification

When the lease liability is remeasured, other than lease modifications, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or in profit and loss if the carrying amount of the right-of-use asset has been reduced to zero.

When the lease liability is remeasured to reflect the partial or full termination of the lease for lease modifications that decrease the scope of the lease, the Company accounts for the remeasurement of the lease liability by decreasing the carrying amount of the right-of-use asset to reflect the partial or full termination of the lease, and recognize in profit or loss any gain or loss relating to the partial or full termination of the lease.

The Company presents right-of-use assets that do not meet the definition of investment and lease liabilities as a separate line item respectively in the statement of financial position.

If an arrangement contains lease and non-lease components, the Company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, for the leases of land and buildings in which it is a lessee, the Company has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

The Company has elected not to recognize right-of-use assets and lease liabilities for shortterm leases and leases of low-value assets of other equipment. The Company recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

(iii) As a lessor

When the Company acts as a lessor, it determines at lease commencement whether each lease is a finance lease or an operating lease. To classify each lease, the Company makes an overall assessment of whether the lease transfers to the lessee substantially all of the risks and rewards of ownership incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then the lease is an operating lease. As part of this assessment, the Company considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

When the Company is an intermediate lessor, it accounts for its interests in the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use asset arising from the head lease. If a head lease is a short-term lease to which the Company applies the exemption described above, then it classifies the sub-lease as an operating lease.

If an arrangement contains lease and non-lease components, the Company applies IFRS15 to allocate the consideration in the contract.

The Company recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of ‘rental income’.

(m) Impairment of non-financial assets

At each reporting date, the Company reviews the carrying amounts of its non-financial assets (other than inventories, contract assets, deferred tax assets and investment properties and biological assets, measured at fair value, less costs) to determine whether there is any indication of impairment. If any such indication exists, then the asset’s recoverable amount is estimated. Goodwill is tested annually for impairment.

For impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from continuing use that are largely independent of the cash inflows of other assets or cash-generating units (CGUs). Goodwill arising from a business combination is allocated to CGUs or groups of CGUs that are expected to benefit from the synergies of the combination.

The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or CGU.

An impairment loss is recognized if the carrying amount of an asset or CGU exceeds its recoverable amount.

Impairment losses are recognized in profit or loss. They are allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets in the CGU on a pro rata basis.

(n) Revenue recognition

(i) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Company expects to be entitled in exchange for transferring goods or services to a customer. The Company recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The accounting policies for the Company’ s main types of revenue are explained below:

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

1) Sale of goods – Feed and meat products

The Company manufactures and sells feed and meat products to customers. The Company recognizes revenue when the control of the product is transferred. The transfer of control of the product means that the product has been delivered to the customer, and the customer can fully determine the sales channel and price of the product without any unfulfilled performance obligations that will affect the customer's acceptance of the product. Delivery occurs when the product is delivered to a specific location, when the customer has accepted the product in accordance with the sales contract, when its risk of obsolescence and loss have been transferred to the customer, when the acceptance clause has expired, or when the combined company has objective evidence that all acceptance conditions have been met.

The Company often provides volume discounts to customers on the basis of cumulative sales within twelve months. The Company recognizes revenue on the basis of the contract price minus the net amount of the estimated quantity discount. The amount of the quantity discount is estimated based on the expected value using past experiences, and only in the range where a significant change will not occur at a high degree. The average credit period for feed and meat sales is 30 to 60 days, which is consistent with industry practices and thus does not include financing elements.

A receivable is recognized when the goods are delivered as this is the point in time that the Company has a right to an amount of consideration that is unconditional.

2) IT Consulting services/Advisory and Management

The Company provides business IT management services. Revenue from providing services is recognized in the accounting period in which the services are rendered. For fixed-price contracts, revenue is recognized based on the actual service provided to the end of the reporting period as a proportion of the total services to be provided. The proportion of services provided is determined based on the actual labor hours spent relative to the total expected labor hours.

3) Financial components

The Company does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Company does not adjust any of the transaction prices for the time value of money.

(o) Employee benefits
(i) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided. Prepaid contributions are recognized as an asset to the extent that a cash refund or a reduction in future payments is available.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(ii) Defined benefit plans

The Company’s net obligation in respect of defined benefit plans is calculated separately for each the plan by estimating the amount of future benefit that employees have earned in the current and prior periods, discounting that amount and deducting the fair value of any plan assets.

The calculation of defined benefit obligations is performed annually by a qualified actuary using the projected unit credit method. When the calculation results in a potential asset for the Company, the recognized asset is limited to the present value of economic benefits available in the form of any future refunds from the plan or reductions in future contributions to the plan. To calculate the present value of economic benefits, consideration is given to any applicable minimum funding requirements.

Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding interest), are recognized immediately in other comprehensive income, and accumulated in retained earnings within equity. The Company determines the net interest expense (income) on the net defined benefit liability (asset) for the period by applying the discount rate used to measure the defined benefit obligation at the beginning of the annual period to the then-net defined benefit liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized in profit or loss.

When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit that relates to past service or the gain or loss on curtailment is recognized immediately in profit or loss. The Company recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

(iii) Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(p) Income taxes

Income taxes comprise current taxes and deferred taxes. Except for expenses related to business combinations or recognized directly in equity or other comprehensive income, all current and deferred taxes are recognized in profit or loss.

Current income tax includes the estimated income tax payable or tax refund receivable calculated through the taxable profit (loss) of the year, plus any adjustments made to the tax payable in previous years. After reflecting the uncertainty (if any) related to income tax, the amount is the best estimate of the expected payment or receivable based on the statutory tax rate on the reporting date or on the tax rate of the substantively enacted legislation.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Deferred taxes arise due to temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases. Deferred taxes are recognized except for the following:

(i) Temporary differences on the initial recognition of assets and liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable profits (losses) at the time of the transaction;
(ii) Temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Company is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

(iii) taxable temporary differences arising on the initial recognition of goodwill.

Deferred tax assets are recognized for the carry forward of unused tax losses, unused tax credits, and deductible temporary differences to the extent that it is probable that future taxable profits will be available against which they can be utilized. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefits will be realized.

Deferred tax assets and liabilities are offset if the following criteria are met:

(i) the Company has a legally enforceable right to set off current tax assets against current tax liabilities; and
(ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:
1) the same taxable entity; or
2) different taxable entities which intend to settle current tax assets and liabilities on a net basis, or to realize the assets and liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(q) Earnings per share

The Company discloses the Company’s basic and diluted earnings per share attributable to ordinary shareholders of the Company. Basic earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding. Diluted earnings per share is calculated as the profit attributable to ordinary shareholders of the Company divided by the weighted average number of ordinary shares outstanding after adjustment for the effects of all potentially dilutive ordinary shares.

(r) Operating segments

The Company has disclosed operating segment information in the consolidated financial reports, so no segment information will be disclosed in the individual financial reports.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

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

The preparation of the financial statements in conformity with the Regulations requires management to make judgments, estimates, and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income, and expenses. Actual results may differ from these estimates.

The management continues to monitor the accounting estimates and assumptions. The management recognizes any changes in accounting estimates during the period and the impact of those changes in accounting estimates in the following period.

Judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the financial statements will be assessed through the impairment of investments accounted for using equity method. In the process of assessing asset impairment, the Company must rely on subjective judgments and use asset usage patterns and industry characteristics to determine the independent cash flow, the assets’ useful-life-years, and the potential future gains and losses for a specific asset group. Any changes in estimates due to changes in economic conditions or company strategies may cause significant impairments or reversals of recognized impairment losses in the future.

(6) Explanation of significant accounts:

(a) Cash and cash equivalents

Cash on hand Revolving funds Check deposits Demand deposits Foreign currency deposits Cash and cash equivalents	December 31, 2020 $ 5,000 343 194,389 85,863 4,920 $ 290,515	December 31, 2019
		4,755 355 172,107 70,615 3,188
		251,020

The Company held deposits that mature within one year for short term cash purposes. Such deposits are held to meet short term cash commitments rather than for investment or other purposes. The time deposits with maturities within one year are readily convertible to known amounts of cash and are subject to an insignificant risk of changes in value. Please refer to note 6(x) for the interest rate risk and the sensitivity analysis of financial assets and liabilities of the Company.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(b) Financial assets and liabilities at fair value through profit or loss

Financial assets mandatorily measured at fair value through profit or loss: Derivative instruments not used for hedging Corn structured swaps Forward exchange contracts Non-derivative financial assets Stocks listed on domestic markets Total Held-for-trading financial liabilities: Derivative instruments not used for hedging Option contracts Forward exchange contracts Total	December 31, 2020 $ 11,969 8,046 439 $ 20,454 $ (1,010) (22,189) $ (23,199)	December 31, 2019
		- - 439
		439
		- (69,844)
		(69,844)

(i) Derivative financial instruments not designated as hedging instruments

The Company uses derivative financial instruments to hedge certain foreign exchange and interest rate risks the Company is exposed to arising from its operating, financing, and investing activities. As of December 31, 2020 and 2019, the following derivative instruments, without the application of hedge accounting, were classified as mandatorily measured at fair value through profit or loss and held-for-trading financial liabilities:

Forward exchange purchased Forward exchange purchased Forward exchange purchased				December 31, 2020	December 31, 2020
		Carrying amount 8,046 (22,189)		Amount (in thousands) Currency Maturity date USD 93,500 USD to NTD 2021.1.7-2021.2.5 USD 99,000 USD to NTD 2021.1.4-2021.2.4 December 31, 2019
		Carrying amount (69,844)			Currency Maturity date USD to NTD 2020.1.2-2020.3.9

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(ii) Structured products and options trading

Item	Type	Outstanding position	Outstanding position	Fair value
		Buy/Sell	Amount
December 31, 2020	Corn Corn Total	Buy Sell	800 500	11,969 (1,010)
Structured swap Option contract
				10,959

As of December 31, 2019, the Company has no outstanding position corn structured swaps nor option contracts.

Equity investments at fair value through other comprehensive income: Listed common shares: Domestic- TTET UNION CORPORATION Unlisted common shares: Domestic Total	December 31, 2020 $ 2,196,917 80,171 $ 2,277,088	December 31, 2019
		1,865,452 80,677
		1,946,129

(i) Equity investments at fair value through other comprehensive income

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

For more information on the dividends received due to equity investments at fair value through other comprehensive income held on the years then ended December 31, 2020 and 2019, please refer to Note 6(w).

There were no disposals of strategic investments and transfers of any cumulative gain or loss within equity to these investments as of December 31, 2020 and 2019.

(ii) For credit risk and market risk, please refer to Note 6(x).
(iii) The aforementioned financial assets had not been pledged as collateral for its long-term borrowings.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Sensitivity analysis- equity price risks:

If the price of equity securities changes on the reporting date (the two-period analysis adopts the same basis and assumes that other changing factors remain unchanged), the impact on the comprehensive profit and loss items is as follows:

Prices of securities at the reporting date	For the years ended December 31, 2020 2019 Other comprehensive income after tax Net income Other comprehensive income after tax Net income $ 22,770 - 19,461 - $ (22,770) - (19,461) -	For the years ended December 31, 2020 2019 Other comprehensive income after tax Net income Other comprehensive income after tax Net income $ 22,770 - 19,461 - $ (22,770) - (19,461) -	For the years ended December 31, 2020 2019 Other comprehensive income after tax Net income Other comprehensive income after tax Net income $ 22,770 - 19,461 - $ (22,770) - (19,461) -
	Other comprehensive income after tax $ 22,770 $ (22,770)	Other comprehensive income after tax 19,461 (19,461)	Net income
Increasing 1% Decreasing 1%			-
			-

(d) Notes and trade receivables

Notes receivable from operating activities Trade receivables–measured as amortized cost Less: Loss allowance	December 31, 2020 $ 861,623 2,534,784 (93,704) $ 3,302,703	December 31, 2019
		870,680 1,984,872 (67,812)
		2,787,740

The Company applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due, as well as the incorporated forward looking information, including macroeconomic and relevant industry information. The loss allowance provisions were determined as follows:

December 31, 2020	December 31, 2020
Gross carrying amount $ 3,086,009 278,401 9,015 4,150 4,434 940 13,458 $ 3,396,407	Weighted average loss rate 2.26% 2.33% 12.89% 28.5% 32.77% 38.97% 100%	Loss allowance provision
		69,596 6,486 1,162 1,183 1,453 366 13,458
		93,704

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

December 31, 2019	December 31, 2019
Gross carrying amount $ 2,670,129 137,605 17,892 8,645 8,057 9,098 4,126 $ 2,855,552	Weighted average loss rate 1.44% 1.70% 8.25% 49.14% 100% 100% 100%	Loss allowance provision
		38,464 2,343 1,476 4,248 8,057 9,098 4,126
		67,812

The movement in the allowance for notes and trade receivables were as follows:

Balance at January 1, 2020 Impairment losses recognized Amounts written off Amounts recoverable Balance at December 31, 2020 Balance at January 1, 2019 Impairment losses recognized Amounts written off Amounts recoverable Balance at December 31, 2019	Accumulated loss $ 67,812 24,290 (1,559) 3,161 $ 93,704 $ 58,738 24,840 (16,158) 392 $ 67,812

As of December 31, 2020 and 2019, trade receivables had not been pledged as collateral.

(e) Inventory

Raw materials and consumables Materials in transit Work in progress Finished goods Agricultural products Total Inventory FVLCTS	December 31, 2020 $ 448,858 938,578 3,075 264,834 43,129 $ 1,698,474 $ 43,129	December 31, 2019 746,070 1,005,132 3,182 209,619 175,982 2,139,985 175,982

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

The details of the cost of sales were as follows:

Inventory that has been sold Revenue from sale of scraps	For the years ended December 31,	For the years ended December 31,
	2020 $ 23,201,759 (80,018) $ 23,121,741	2019
		24,095,643 (103,906) 23,991,737

As of December 31, 2020 and 2019, inventories have not been pledged as collateral for long-term borrowings.

(f) Biological assets
(i) Details of biological assets：

Biological assets: Current Consumable biological assets: Poultry Consumable biological assets: Livestock Bearer biological assets: Poultry Bearer biological assets: Accumulated depreciation Changes in the fair value of productive biological assets less costs to sell Biological assets: Current Biological assets: Non-current Consumable biological assets: Poultry Consumable biological assets: Accumulated depreciation Bearer biological assets: Livestock Bearer biological assets: Accumulated depreciation Biological assets: Non-current	December 31, 2020 $ 295,302 589,225 86,707 (38,194) 1,757 $ 934,797 $ 22,137 (9,714) 261,214 (86,470) $ 187,167	December 31, 2019 200,145 508,022 152,781 (58,640) - 802,308 - - 301,341 (100,910) 200,431

(ii) Changes in biological assets:

Balance at January 1, 2020 Increase due to purchases Decrease due to sales Net increase due to reproduction (death) Balance at December 31, 2020 Current Non-current	Poultry $ 294,286 1,714,322 (1,928,162) 277,549 $ 357,995 $ 345,572 12,423 $ 357,995	Livestock 708,453 62,892 (2,057,072) 2,049,696 763,969 589,225 174,744 763,969	Total 1,002,739 1,777,214 (3,985,234) 2,327,245 1,121,964 934,797 187,167 1,121,964

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Balance at January 1, 2019 Increase due to purchases Decrease due to sales Net increase due to reproduction (death) Balance at December 31, 2019 Current Non-current	Poultry $ 275,893 1,414,941 (2,039,224) 642,676 $ 294,286 $ 294,286 - $ 294,286	Livestock 696,735 66,146 (2,134,051) 2,079,623 708,453 508,022 200,431 708,453	Total
			972,628 1,481,087 (4,173,275) 2,722,299
			1,002,739
			802,308 200,431
			1,002,739

(iii) As of December 31, 2020 and 2019, the number of poultry owned amounted to:

Underage broiler Underage breeder poultry Breeder poultry	December 31, 2020 6,719,596 164,712 223,925 7,108,233	December 31, 2019
		5,782,389 179,288 806,094
		6,767,771

(iv) As of December 31, 2020 and 2019, the number of livestock owned amounted to:

Underage swine Underage breeder swine Breeder swine	December 31, 2020 97,141 14,673 16,788 128,602	December 31, 2019
		112,008 16,462 12,841
		141,311

The Company slaughtered and sold approximately 71,290,737 and 67,552,814 units of biological assets in 2020 and 2019, respectively.

(v) Fair value

The fair value of biological assets is based on the most recent market transaction price. However, if there are major changes in economic conditions between the transaction date and the reporting date, the market price of similar assets will be adjusted to reflect the difference. The fair value of livestock to be sold is based on the market price of livestock of similar age, breed and gene. When the market-determined price or value of a biological asset cannot be obtained at the time of initial recognition, and the alternative estimate for determining the fair value is unreliable, the biological asset should be measured at its cost minus all accumulated depreciation and all accumulated impairment losses. The book value of biological assets not measured by fair value is a reasonable approximation of fair value.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

The Company is exposed to the following risks related to raising poultry and livestock:

(i) Regulations and environmental risks

The Company has established environmental policies and procedures aimed at compliance with local environmental and other laws. Management performs regular reviews to identify environmental risks and to ensure that systems in place are adequate to manage those risks.

(ii) Supply and demand risks

The Company is exposed to risks arising from fluctuations in the price and sales volume of poultry and livestock. When possible, the Company manages this risk by aligning its raising volume with market supply and demand. Management performs regular industry trend analyzes to ensure that the Company’s pricing structure is in line with the market and to ensure that projected slaughtering volumes are consistent with the expected demand.

(iii) Climate and other risks

The Company’s poultry and livestock raising is exposed to the risk of damage from climate change, diseases, and other natural forces. The Company has extensive processes in place aimed at monitoring and mitigating those risks, including raising animals in a closed environment and conducting regular health checks and disease investigation of poultry and livestock. The Company also insures itself against natural disasters such as floods and hurricanes.

As of December 31, 2020 and 2019, biological assets have not been pledged as collateral for long-term borrowings.

(g) Prepayments

The details of prepayments are as follows：

Prepayments to suppliers Prepayments to breeders Other	December 31, 2020 $ 85,609 16,766 8,190 $ 110,565	December 31, 2019
		62,084 7,779 17,048
		86,911

(h) Investments using the equity method

A summary of the Company’s financial information for investments accounted for using the equity method at the reporting date is as follows:

Subsidiary	December 31, 2020 $ 11,898,268	December 31, 2019
		9,600,405

Please refer to the consolidated financial statements for the year ended December 31, 2020.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(i) Property, plant and equipment

The movements of the cost, depreciation, and impairment of the property, plant and equipment of the Company were as follows:

Land	Buildings and Construction	Machinery and Equipment	Transportation equipment	Other facilities	Construction in progress	Accumulated impairment	Total
$ 3,475,066 287,920 55,675 25,280 (145,841) $ 3,698,100 $ 2,008,195 1,535,534 - (68,663) $ 3,475,066 $ - - - - $ - $ - - - $ - $ 3,698,100 $ 2,008,195 $ 3,475,066	2,771,757 - 73,294 545,326 (187,780) 3,202,597 2,695,961 37,054 57,089 (18,347) 2,771,757 1,232,674 103,452 45,074 (53,970) 1,327,230 1,132,655 100,249 (230) 1,232,674 1,875,367 1,563,306 1,539,083	3,015,858 - - 82,862 (531,646) 2,567,074 2,799,282 56 218,200 (1,680) 3,015,858 2,146,785 116,771 - (243,264) 2,020,292 1,989,600 158,865 (1,680) 2,146,785 546,782 809,682 869,073	196,202 39,332 - 5,385 (34,931) 205,988 195,240 29,320 5,807 (34,165) 196,202 123,518 25,615 - (24,755) 124,378 124,444 26,894 (27,820) 123,518 81,610 70,796 72,684	1,945,310 10,168 - 224,877 (266,252) 1,914,103 1,674,710 3,634 267,723 (757) 1,945,310 1,278,334 160,352 - (150,027) 1,288,659 1,111,165 167,842 (673) 1,278,334 625,444 563,545 666,976	729,335 783,939 - (883,730) (39,379) 590,165 388,802 889,352 (548,819) - 729,335 - - - - - - - - - 590,165 388,802 729,335	- - - - - - - - - - - 1,500 - - - 1,500 1,500 - - 1,500 (1,500) (1,500) (1,500)	12,133,528 1,121,359 128,969 - (1,205,829)
							12,178,027
							9,762,190 2,494,950 - (123,612)
							12,133,528
							4,782,811 406,190 45,074 (472,016)
							4,762,059
							4,359,364 453,850 (30,403)
							4,782,811
							7,415,968
							5,402,826
							7,350,717

(i) In 2008, the Company acquired nine lots of land (0439-0000, etc.) for $35,708 thousand in Xinpi Township Section, Xinpi Township, Pingtung County. Since they are all agricultural land and cannot be transferred to the company, property rights are temporarily registered under the individual’s name. However, an agreement has been obtained and security measures have been adopted to mortgage the land to the company.
(ii) In October 2009, the Company acquired three lots of land (212, etc.) for $16,011 thousand in Shirong Section, Yanpu Township, Pingtung County. Since they are all agricultural land and cannot be transferred to the company, property rights are temporarily registered under the individual’s name. However, an agreement has been obtained and security measures have been adopted to mortgage the land to the company.
(iii) In October 2008, the Company acquired twenty-one lots of land (105-34, etc.) for $45,971 thousand in Wuluo Section, Ligang Township, Pingtung County. Since they are all agricultural land and cannot be transferred to the company, property rights are temporarily registered under the individual’s name. However, an agreement has been obtained and security measures have been adopted to mortgage the land to the company.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(iv) The Company acquired 5 lots of land (0889, etc.) for $23,179 thousand in Pizaitou Section, Guanmiao Township, Tainan County in April 2010. Since they are all agricultural land and cannot be transferred to the company, property rights are temporarily registered under the individual’s name. However, an agreement has been obtained and security measures have been adopted to mortgage the land to the company. In July 2014, land lot 0889 and 0893 worth $22,823 thousand have been transferred to the Company.
(v) The Company acquired land lots (0440-0006) for $3,247 thousand in Xinbei Township Section, Xinpi Township, Pingtung County in March 2011. Since they are all agricultural land and cannot be transferred to the company, property rights are temporarily registered under the individual’s name. However, an agreement has been obtained and security measures have been adopted to mortgage the land to the company.
(vi) The Company acquired one lot of land (715-2) for $1,114 thousand in Xinli Section, Xinpi Township, Pingtung County in 2013. Since they are all agricultural land and cannot be transferred to the company, property rights are temporarily registered under the individual’s name. However, an agreement has been obtained and security measures have been adopted to mortgage the land to the company.
(vii) The Company acquired one land lot (440-7) for $3,617 thousand in Shitan Section, Xinpi Township, Pingtung County in September 2015. Since they are all agricultural land and cannot be transferred to the company, property rights are temporarily registered under the individual’s name. However, an agreement has been obtained and security measures have been adopted to mortgage the land to the company.
(viii) The Company acquired land lots (936, 936-1) in Linluo Township, Pingtung County for $9,841 thousand in January 2016. Since they are all agricultural land and cannot be transferred to the company, property rights are temporarily registered under the individual’s name. However, an agreement has been obtained and security measures have been adopted to mortgage the land to the company.
(ix) The Company acquired one land lot (4303) in the Caohu Section and Fangbei Section of Fangyuan Township, Changhua County for $85,862 thousand in December 2018. Since they are all agricultural land and cannot be transferred to the company, property rights are temporarily registered under the individual’s name. However, an agreement has been obtained and security measures have been adopted to mortgage the land to the company.
(x) Guarantees

As of December 31, 2020 and 2019, no guarantees were made for its short-term borrowings.

(xi) The Company did not capitalize any interests incurred due to the construction of plant and equipment in the years 2020 and 2019.
(xii) For gain (loss) on disposal, please refer to Note 6(w).

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(j) Right-of-use assets

The movements of the cost, depreciation for the land, buildings and construction, transportation equipment, machinery and equipment that were leased by the Company were as follows:

Buildings and construction Machinery and equipment Other Cost： Balance at January 1, 2020 $ 176,288 16,705 111,570 Addition 298 - - Balance at December 31, 2020 $ 176,586 16,705 111,570 Effects of retrospective application $ 184,574 - 111,570 Addition - 16,705 - Disposal/Write-off (8,286) - - Balance at December 31, 2019 $ 176,288 16,705 111,570 Accumulated depreciation and impairment losses： Balance at January 1, 2020 $ 29,545 - 15,938 Depreciation for the year 29,606 - 15,938 Balance at December 31, 2020 $ 59,151 - 31,876 Balance at January 1, 2019 $ - - - Depreciation for the year 33,096 - 15,938 Disposal (3,551) - - Balance at December 31, 2019 $ 29,545 - 15,938 Carrying amount： Balance at December 31, 2020 $ 117,435 16,705 79,694 Balance at January 1, 2019 $ 184,574 - 111,570 Balance at December 31, 2019 $ 146,743 16,705 95,632 Investment property For all investment property leases, the rental income is fixed under the contracts. The details of investment properties are as follows: Owned property Land and improvements Buildings and construction Accumulated impairment Balance at January 1, 2020 $ 331,043 446,662 - Transferred to property, plant and equipment (55,675) (73,294) - Balance at December 31, 2020 $ 275,368 373,368 - Balance at December 31, 2019 (same as balance at January 1, 2019) $ 331,043 446,662 - Accumulated depreciation and impairment losses: Balance at January 1, 2020 $ - 263,151 36,000 Depreciation - 9,193 - Transferred to property, plant and equipment - (45,074) - Balance at December 31, 2020 $ - 227,270 36,000 Balance at January 1, 2019 $ - 253,813 36,000 Depreciation - 9,338 - Balance at December 31, 2019 $ - 263,151 36,000	Buildings and construction Machinery and equipment Other Cost： Balance at January 1, 2020 $ 176,288 16,705 111,570 Addition 298 - - Balance at December 31, 2020 $ 176,586 16,705 111,570 Effects of retrospective application $ 184,574 - 111,570 Addition - 16,705 - Disposal/Write-off (8,286) - - Balance at December 31, 2019 $ 176,288 16,705 111,570 Accumulated depreciation and impairment losses： Balance at January 1, 2020 $ 29,545 - 15,938 Depreciation for the year 29,606 - 15,938 Balance at December 31, 2020 $ 59,151 - 31,876 Balance at January 1, 2019 $ - - - Depreciation for the year 33,096 - 15,938 Disposal (3,551) - - Balance at December 31, 2019 $ 29,545 - 15,938 Carrying amount： Balance at December 31, 2020 $ 117,435 16,705 79,694 Balance at January 1, 2019 $ 184,574 - 111,570 Balance at December 31, 2019 $ 146,743 16,705 95,632 Investment property For all investment property leases, the rental income is fixed under the contracts. The details of investment properties are as follows: Owned property Land and improvements Buildings and construction Accumulated impairment Balance at January 1, 2020 $ 331,043 446,662 - Transferred to property, plant and equipment (55,675) (73,294) - Balance at December 31, 2020 $ 275,368 373,368 - Balance at December 31, 2019 (same as balance at January 1, 2019) $ 331,043 446,662 - Accumulated depreciation and impairment losses: Balance at January 1, 2020 $ - 263,151 36,000 Depreciation - 9,193 - Transferred to property, plant and equipment - (45,074) - Balance at December 31, 2020 $ - 227,270 36,000 Balance at January 1, 2019 $ - 253,813 36,000 Depreciation - 9,338 - Balance at December 31, 2019 $ - 263,151 36,000	Total
		304,563 298 304,861 296,144 16,705 (8,286) 304,563 45,483 45,544 91,027 - 49,034 (3,551) 45,483 213,834 296,144 259,080 Total 777,705 (128,969) 648,736 777,705 299,151 9,193 (45,074) 263,270 289,813 9,338 299,151

(k) Investment property

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Carrying amount: Balance at December 31, 2020 Balance at December 31, 2019 Fair value: Balance at December 31, 2020 Balance at December 31, 2019	Owned property	Owned property	Accumulated impairment Total (36,000) 385,466 (36,000) 478,554 $ 541,117 $ 632,454	Total 385,466
	Land and improvements $ 275,368 $ 331,043	Buildings and construction 146,098 183,511
				478,554

The fair value of investment properties was based on a valuation by management. Fair value was measured using the market approach to compare the market value of the properties with similar condition in neighboring areas.

Investment property comprises a number of commercial properties that are leased to third parties. Each of the leases contains an initial non-cancellable period of 2 to 9 years. Subsequent renewals are negotiated with the lessee, and no contingent rent are charged. For relevant information, please refer to Note 6(p).

The Company acquired the Hedong section of Dongshan District, Tainan City (previously land lots #0328-0001 in the Jibeishuan Section, Dongshan Township, Tainan County) for $313 thousand in 2007. Since they are all agricultural land and cannot be transferred to the company, property rights are temporarily registered under the individual’s name. However, an agreement has been obtained and security measures have been adopted to mortgage the land to the company.

As of December 31, 2020 and 2019, investment properties have not been pledged as collateral.

(l) Other non current assets - other

Prepayments for construction and facilities Intangible assets Guarantee deposits paid Unamortized expenses Prepaid processing fee	December 31, 2020 $ 214,896 600 55,371 6,199 30,000 $ 307,066	December 31, 2019
		473,341 600 40,908 4,159 30,000
		549,008

(m) Short-term borrowings

Letters of credit Unsecured bank loans Total Unused short-term credit lines Range of interest rates	December 31, 2020 $ 3,579,406 1,059,000 $ 4,638,406 $ 6,061,939 0.476%~1%	December 31, 2019
		2,798,166 1,318,000
		4,116,166
		3,532,677
		0.8%~2.73%

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(i) Issuance and repayment of loans

Balance at January 1, 2020 New loans (Due date: from January 2020 to June 2021) Loans repaid Balance at December 31, 2020 Balance at January 1, 2019 New loans (Due date: from February 2019 to June 2020) Loans repaid Balance at December 31, 2019	Total $ 4,116,166 49,856,942 (49,334,702) $ 4,638,406 $ 2,922,678 53,544,054 (52,350,566) $ 4,116,166

(ii) Collateral for bank loans

The Company issues covered promissory notes to guarantee for short-term borrowings. Please refer to Note 9.

(n) Short-term notes and bills payable

As of December 31, 2020 and 2019 , the guarantee and acceptance agencies for commercial shortterm notes are Ta Ching Bills Finance Corporation, China Bills Finance Corporation, Dah Chung Bills Finance Corporation, Taiwan Cooperative Bills Finance Corporation, Taiwan Finance Co., and Mega Bills Finance Corporation. The maturity dates are from 2021.1.4~2021.2.2 and from 2020.1.3~2020.1.22, respectively. Their respective face values are $1,700,000 thousand and $1,800,000 thousand.

December 31, 2020 Commercial paper payable $ 1,700,000 (i) Issuance and repayment Balance at January 1, 2020 New loans (Due date: from January 2020 to February 2021) Loans repaid Balance at December 31, 2020 Range of interest rates Balance at January 1, 2019 New loans (Due date: from January 2019 to January 2020) Loans repaid Balance at December 31, 2019 Range of interest rates
	Total $ 900,000 18,300,000 (17,400,000) $ 1,800,000 0.958%-0.978%

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(ii) Collateral for borrowings

The Company issues covered promissory notes to guarantee for short-term borrowings. Please refer to Note 9.

(o) Lease liabilities

The carrying amounts of lease liabilities are as follows:

Current Non-current	December 31, 2020 $ 46,575 $ 170,194	December 31, 2019
		45,908
		214,969

For the maturity analysis, please refer to Note 6(x).

The amounts recognized in profit or loss was as follows:

Interest on lease liabilities Expenses relating to short-term leases Expenses relating to leases of low-value assets, excluding short-term leases of low-value assets	For the years ended December 31,	For the years ended December 31,
	2020 $ 3,363 $ 14,515 $ 8,692	2019
		4,094
		16,334
		7,138

The amounts recognized in the statement of cash flows for the Company was as follows:：

Total cash outflow for leases	2020 $ 70,976	2019
		74,803

(p) Operating lease

(i) Leases as lessor

The Company leases out its investment property. Please refer to Note 6(k) for information about the operating leases of investment property.

A maturity analysis of lease payments showing the undiscounted lease payments to be received on December 31, 2020 is as follows:

Less than one year Between one and five years Over five years Total undiscounted lease payments	December 31, 2020 $ 25,392 58,853 7,906 $ 92,151	December 31, 2019
		30,022 120,000 265,500
		415,522

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(q) Employee benefits

(i) Defined benefit plans

Reconciliation of defined benefit obligation at present value and plan asset at fair value are as follows:

December 31, 2020 Present value of the defined benefit obligations $ 62,850 Fair value of planned assets (168,109) Net defined benefit liabilities (assets) $ (105,259) The Company’s employee benefit liabilities (assets) were as follows: December 31, 2020 Total employee benefit assets $ (105,259)	December 31, 2019 68,628 (169,270) (100,642) December 31, 2019 (100,642)

The Company makes defined benefit plan contributions to the pension fund account with Bank of Taiwan that provides pensions for employees upon retirement. Plans (covered by the Labor Standards Law) entitle a retired employee to receive retirement benefits based on years of service and average monthly salary for the six months prior to retirement.

1) Composition of plan assets

The Company allocates pension funds in accordance with the Regulations for Revenues, Expenditures, Safeguard and Utilization of the Labor Retirement Fund, and such funds are managed by the Bureau of Labor Funds, Ministry of Labor. With regard to the utilization of the funds, minimum earnings shall be no less than the earnings attainable from two-year time deposits with interest rates offered by local banks.

The Company approved the establishment of the "Employee Pension Management Committee" in accordance with Rule No. 0920015946 issued by the Xinhua Office of the National Taxation Bureau of the Southern Area to transfer retirement funds to the special employee retirement reserve account of the Cooperative Bank Commercial Bank.

The Company’s Bank of Taiwan and Taiwan Cooperative Bank labor pension reserve account balance amounted to $168,109 thousand and $169,270 thousand as of December 31, 2020 and 2019, respectively. For information on the utilization of the labor pension fund assets, including the asset allocation and yield of the fund, please refer to the website of the Bureau of Labor Funds, Ministry of Labor.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

2) Movements in present value of the defined benefit obligations

For the years ended December 31, 2020 and 2019, the movement in present value of the defined benefit obligations for the Company were as follows:

Defined benefit obligations at January 1 Current service costs and interest cost (income) Remeasurements loss (gain): －Return on plan assets excluding interest income －Actuarial loss (gain) arising from financial assumptions Benefits paid Defined benefit obligations at December 31	For the years ended December 31, 2020 2019 $ 68,628 68,951 1,522 1,667 (470) 1,242 1,954 515 (8,784) (3,747) $ 62,850 68,628

3) Movements of defined benefit plan assets

For the years ended December 31, 2020 and 2019, the movements in the present value of the defined benefit plan assets for the Company were as follows:

Defined benefit obligations at January 1 Remeasurements loss (gain): －Return on plan assets excluding interest income Contributions paid by the employer Benefits paid Defined benefit obligations at December 31	For the years ended December 31, 2020 2019 $ 169,270 161,725 5,037 5,520 2,586 5,772 (8,784) (3,747) $ 168,109 169,270

4) Expenses recognized in profit or loss

The expenses recognized in profit or loss for the Company were as follows:

Current service costs Net interest of net liabilities for defined benefit obligations Total (Administration expenses)	For the years ended December 31, 2020 2019 $ 1,055 1,116 (722) (764) $ 333 352

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Administration expenses	For the years ended December 31,	For the years ended December 31,
	2020 $ 333	2019 352

5) Remeasurement of net defined benefit liability (asset) recognized in other comprehensive income

The Company’s remeasurement of the net defined benefit liability (asset) recognized in other comprehensive income for the years ended December 31, 2020 and 2019, was as follows:

follows:
Accumulated amount at January 1 Recognized during the period Accumulated amount at December 31	For the years ended December 31, 2020 2019 $ 2,535 4,982 (2,363) (2,447) $ 172 2,535
		2,535

6) Actuarial assumptions

The principal actuarial assumptions at the reporting date were as follows:

Discount rate Future salary increase rate	December 31, 2020 December 31, 2019 0.30% 0.70% 2.00% 2.00%

The expected allocation payment to be made by the Company to the defined benefit plans for the one-year period after the reporting date is $1,320 thousand.

The weighted average lifetime of the defined benefits plans ranges from 7.4 years.

7) Sensitivity analysis

Based on the actuarial assumptions, the impact on the present value of the defined benefit obligation shall be as follows:

December 31, 2020 Discount rate (0.25% change) Future salary increasing rate (0.25% change) December 31, 2019 Discount rate (0.25% change) Future salary increasing rate (0.25% change)	Influences of defined benefit obligations (assets) Increased Decreased $ 1,235 (1,281) (1,099) 1,066 $ 1,274 (1,318) (1,136) 1,105

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown above. The method used in the sensitivity analysis is consistent with the calculation of pension liabilities in the balance sheets.

There is no change in the method and assumptions used in the preparation of sensitivity analysis for 2020 and 2019.

(ii) Defined contribution plans

The Company allocates 6% of each employee’s monthly wages to the labor pension personal account at the Bureau of Labor Insurance in accordance with the provisions of the Labor Pension Act. Under these defined contribution plans, the Company allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

The pension costs incurred from the contributions amounted to $60,560 thousand and $55,898 thousand for the years ended December 31, 2020 and 2019, respectively.

(r) Income taxes

(i) The components of income tax in the years 2020 and 2019 were as follows:

Current tax expense Current period Adjustment for prior periods Deferred tax expense Origination and reversal of temporary difference Income tax expense from continuing operations	For the years ended December 31,	For the years ended December 31,
	2020 $ 437,354 5,247 442,601 8,335 8,335 $ 450,936	2019 386,924 6,963 393,887 4,254 4,254 398,141

The amount of income tax recognized in other comprehensive income for 2020 and 2019 was as follows:

Items that will not be reclassified subsequently to profit or loss： Remeasurement from defined benefit plans	For the years ended December 31,	For the years ended December 31,
	2020 $ (473)	2019 (490)

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Reconciliation of income tax and profit before tax for 2020 and 2019 is as follows:

Profit excluding income tax Income tax using the Company’s domestic tax rate Tax-exempt income Other permanent differences Additional tax on undistributed earnings Change in provision in prior periods Total	For the years ended December 31, 2020 2019 $ 3,573,007 2,681,742 714,601 536,348 (16,215) (16,454) (252,697) (140,366) - 11,650 5,247 6,963 $ 450,936 398,141	For the years ended December 31, 2020 2019 $ 3,573,007 2,681,742 714,601 536,348 (16,215) (16,454) (252,697) (140,366) - 11,650 5,247 6,963 $ 450,936 398,141
	2020 $ 3,573,007 714,601 (16,215) (252,697) - 5,247 $ 450,936
		2,681,742
		536,348 (16,454) (140,366) 11,650 6,963
		398,141

(ii) Deferred tax assets and liabilities
1) Unrecognized deferred tax liabilities

The entity is able to control the timing of the reversal of the temporary differences associated with investments in subsidiaries as of December 31, 2020 and 2019. Also, management considers it probable that the temporary differences will not reverse in the foreseeable future. Hence, such temporary differences are not recognized under deferred tax liabilities. Details are as follows:

December 31, 2020 Aggregate amount of temporary differences related to investments in subsidiaries $ 4,925,691 Unrecognizeddeferred tax liabilities $ 985,138	December 31, 2019
	4,911,233
	982,247

2) Recognized deferred tax assets and liabilities

Changes in the amount of deferred tax assets and liabilities for 2020 and 2019 were as follows:

Deferred Tax Liabilities:

January 1, 2020 Recognized in profit or loss debit (credit) December 31, 2020 January 1, 2019 Recognized in profit or loss debit (credit) December 31, 2019	Provision for the Land Value Increment Tax $ 20,754 - $ 20,754 $ 20,754 - $ 20,754	Defined benefit plans 20,635 500 21,135 21,497 (862) 20,635	Unrealized exchange gains and losses - 15,966 15,966 - - -	Fair value gains 11,898 (550) 11,348 1,011 10,887 11,898	Total
					53,287 15,916
					69,203
					43,262 10,025
					53,287

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Deferred Tax Assets:

January 1, 2020 Recognized in profit or loss (debit) credit Debit other comprehensive profit and loss December 31, 2020 January 1, 2019 Recognized in profit or loss (debit) credit Recognized in other comprehensive profit and loss December 31, 2019	Excessive amount of bad debt expense $ 19,392 1,089 - $ 20,481 $ 13,788 5,604 - $ 19,392	Impairment loss of financial assets 7,264 4,848 - 12,112 7,264 - - 7,264	Impairment loss of fixed assets 7,500 - - 7,500 7,500 - - 7,500	Other 12,115 1,644 (473) 13,286 12,438 167 (490) 12,115	Total 46,271 7,581 (473) 53,379 40,990 5,771 (490) 46,271

(iii) As of December 31, 2020, the Company’s tax returns for the years through 2018 were assessed by the National Tax Administration.

(s) Capital and other equity

As of December 31, 2020 and 2019, the number of authorized ordinary shares were both $9,900,000 shares with par value of 10 per share while the total value of authorized ordinary shares amounted to 990,000 thousand. As of those dates, 827,339 thousand ordinary shares were issued, respectively.

Reconciliation of shares outstanding for 2020 and 2019 was as follows:

(expressed in thousands)

Balance at January 1, 2020 Capital increase through undistributed earnings Balance at December 31, 2020	Ordinary	shares
	2020 $ 827,339 - $ 827,339	2019
		787,942 39,397
		827,339

(i) Ordinary shares

A resolution was passed during the general meeting of shareholders held on May 31, 2019 to transfer undistributed earnings of $393,971 thousand into capital increase. The Company has received approval from the Financial Supervisory Commission for this capital increase, with September 2, 2019 as the date of capital increase. The relevant statutory registration procedures have since been completed.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(ii) Capital surplus

The balances of capital surplus as of December 31, 2020 and 2019, were as follows:

Share capital Treasury share transactions Gain or disposal differences arising from subsidiary's share price and its carrying value Change in equity of associates and joint ventures under the equity method Additional paid-in capital arising from bond conversion Other	December 31, 2020 $ 2,252 1,659,108 844,969 66,918 587,144 19,235 $ 3,179,626	December 31, 2019
		2,252 1,559,311 807,430 36,001 587,144 19,235
		3,011,373

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. The aforementioned realized capital surplus includes capital surplus resulting from premium on issuance of capital stock and earnings from donated assets received. According to the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, capital increases by transferring capital surplus in excess of par value should not exceed 10% of the total common stock outstanding.

(iii) Retained earnings

The Company's memorandum stipulates that Company's net earnings should first be used to offset the prior years' deficits, if any, before paying any income taxes. Of the remaining balance, 10% is to be appropriated as legal reserve, and then any remaining profit together with any undistributed retained earnings shall be distributed according to the distribution plan proposed by the Board of Directors and submitted to the stockholders’ meeting for approval.

1) Legal reserve

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

2) Special reserve

When the Company first adopted the IFRSs as approved by the FSC, by application of the exemption under IFRSs No. 1, any unrealized revaluation gains and cumulative translation adjustments (gains) recorded to shareholders equity were reclassified under “Investment property” on the conversion date. The fair value on the conversion date is used as the recognized cost, and the amount of retained earnings increased to $328,719 thousand. In accordance with Rule No. 1010012865 issued by the FSC on April 6, 2012, for the amount that the company elects to transfer to retained earnings, the company shall set aside an equal amount of special reserve, provided that when, on the date of the adoption of the IFRSs, the increase in retained earnings due to the first-time adoption of

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

the IFRSs is insufficient to set aside the amount specified above, the company may set aside only the amount of the increase in retained earnings resulting from the adoption of the IFRSs. Following this, the company stated an increase of $42,994 thousand in special reserves. When the company subsequently uses, disposes of, or reclassifies the relevant assets, it may reverse to distributable earnings a proportional amount of the special reserve originally set aside. As of December 31, 2020 and 2019, special reserves both amounted to $42,994 thousand.

In accordance with Rule No. 1010012865 as stated above, a portion of current-period earnings and undistributed prior-period earnings shall be reclassified as special earnings reserve during earnings distribution. The amount to be reclassified should equal the current-period total net reduction of other shareholders’ equity. Similarly, a portion of undistributed prior-period earnings shall be reclassified as special earnings reserve (and does not qualify for earnings distribution) to account for cumulative changes to other shareholders’ equity pertaining to prior periods. Amounts of subsequent reversals pertaining to the net reduction of other shareholders’ equity shall qualify for additional distributions.

3) Earnings distribution

The amounts of cash dividends on the appropriations of earnings for 2019 and 2018 had been approved during the board meeting on March 27, 2020 and March 28, 2019, respectively. Furthermore, the amounts of share dividends on the appropriations of earnings for 2018 had been approved in the shareholders’ meeting on May 31, 2019.

2019 Amount per share Total amount $ 2.20 1,820,146 - - 1,820,146	2018	2018
Amount per share $ 2.20 -	Amount per share 1.50 0.50	Total amount
		1,181,913 393,971
		1,575,884

The amount of cash dividends on the appropriations of earnings for 2020, and the amount of shares dividends of appropriations of earnings for 2020, had been approved and proposed, respectively during the board meeting on March 31, 2021, as follows:

Dividends distributed to ordinary shareholders: Cash Shares	For the years ended December 31, 2020	For the years ended December 31, 2020
	Amount per share $ 2.70 0.30	Total Amount
		2,233,815 248,202
		2,482,017

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

More information on earnings distribution is available on the Market Observation Post System website.

(iv) Treasury shares

Company shares held by subsidiaries

In 2020 and 2019, subsidiaries of the company did not acquire any company shares. The number of shares held by subsidiaries and their respective market price are as follows:

Name of subsidiary	December 31, 2020 Market price Shares owned (thousands) $ 999,449 19,674 1,304,963 25,688 $ 2,304,412 45,362	December	31, 2019
	Market price $ 999,449 1,304,963 $ 2,304,412	Market price 858,778 1,121,292 1,980,070	Shares owned (thousands)
Huang-Ho Invest. Co., Ltd. City Chain Food Ltd. Total			19,674 25,688
			45,362

In March 2019, when stating subsidiary interests, retained earnings arising from the sale of the company’ s shares by the subsidiary was treated as treasury stocks and then classified as "capital surplus-treasury stock transaction". The amount totaled to $363,674 thousand.

As of December 31, 2020 and 2019, the total value of company shares held by subsidiaries both amounted to $219,132 thousand, respectively.

(v) Other equity interest

Balance at January 1, 2020 Exchange differences on subsidiaries accounted for using equity method Unrealized gains (losses) from subsidiaries' financial assets measured at fair value through other comprehensive income Unrealized gain (losses) from financial assets measured at fair value through other comprehensive income, subsidiaries for using equity method Balance at December 31, 2020	Exchange differences on translation of foreign financial statements $ (899,515) 97,771 - $ (801,744)	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 1,801,643 - 331,465 52,847 2,185,955	Total
			902,128 97,771 331,465 52,847
			1,384,211

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Balance at January 1, 2019 Exchange differences on subsidiaries accounted for using equity method Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income Unrealized gains (losses) from subsidiaries' financial assets measured at fair value through other comprehensive income, subsidiaries for using equity method Balance at December 31, 2019	Exchange differences on translation of foreign financial statements $ (627,977) (271,538) - $ (899,515)	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 1,390,519 - 354,590 56,534 1,801,643	Total 762,542 (271,538) 354,590 56,534 902,128

(t) Employee compensation and directors' remuneration

In accordance with the articles of incorporation the Company should contribute no less than 2% of the profit as employee compensation and less than 2% as directors' remuneration when there is profit for the year. However, if the Company has accumulated deficits, the profit should be reserved to offset the deficit. The amount of remuneration of each director and of compensation for employees entitled to receive the abovementioned employee compensation is approved by the Board of Directors. The recipients of shares and cash may include the employees of the Company's affiliated companies who meet certain conditions.

For the years ended December 31, 2020 and 2019, the Company estimated its employee remuneration both amounting to $90,000 thousand and $75,000 thousand, and directors' remuneration both amounting $40,000 thousand and $35,000 thousand, respectively. The estimated amounts mentioned above are calculated based on the net profit before tax, excluding the remuneration to employees, directors of each period, multiplied by the percentage of remuneration to employees, directors as specified in the Company's articles. These remunerations were expensed under operating costs or operating expenses during 2020 and 2019. If the Board of Directors choose to distribute shares as employee compensation, calculations shall be done one day prior the date of their meeting.

The amounts, as stated in the financial statements, are identical to those of the actual distributions for 2020 and 2019. Related information would be available on the Market Observation Post System website.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(u) Earnings per share

(i) Basic earnings per share

The details on the calculation of basic earnings per share as of December 31, 2020 and 2019 was based on the profit attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares outstanding. Calculations are as follows:

1) Profit attributable to ordinary shareholders of the Company

Profit attributable to ordinary shareholders of the Company	For the years ended December 31,	For the years ended December 31,
	2020 $ 3,122,071	2019
		2,283,601

2) Weighted average number of ordinary shares

Issued ordinary shares at January 1 Effect of the Company's shares held by subsidiaries recognized as treasury shares Effect of share dividends Weighted average number of ordinary shares at December 31	For the years ended December 31,	For the years ended December 31,
	2020 $ 827,339 (45,362) - $ 781,977	2019
		787,942 (48,188) 39,397
		779,151

(ii) Diluted earnings per share

The details on the calculation of diluted earnings per share as of December 31, 2020 and 2019 was based on the profit attributable to ordinary shareholders of the Company and the weighted average number of ordinary shares outstanding after adjusting the effects of all dilutive potential ordinary shares. Calculations are as follows:

1) Profit attributable to ordinary shareholders of the Company (diluted)

Profit attributable to ordinary shareholders of the Company (diluted)	For the years ended December 31,	For the years ended December 31,
	2020 $ 3,122,071	2019
		2,283,601

2) Weighted average number of ordinary shares (diluted)

Weighted average number of ordinary shares (basic) Effect of employee share bonus Weighted average number of ordinary shares (diluted) at December 31	For the years ended December 31,	For the years ended December 31,
	2020 $ 781,977 1,772 $ 783,749	2019
		779,151 1,718
		780,869

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(v) Revenue from contracts with customers

For the year ended December 31, 2020	For the year ended December 31, 2020	For the year ended December 31, 2020	For the year ended December 31, 2020
Agriculture and Grains Meat Processed Foods Total $ 15,693,651 11,249,363 230,324 27,173,338 $ 13,526,716 1,644,615 - 15,171,331 2,166,935 9,604,748 230,324 12,002,007 $ 15,693,651 11,249,363 230,324 27,173,338 For the year ended December 31, 2019			Total
			27,173,338
			15,171,331 12,002,007
			27,173,338
	Meat 10,481,221 1,859,952 8,621,269 10,481,221	Processed Foods 51,106 - 51,106 51,106	Total
			27,785,090
			16,910,322 10,874,768
			27,785,090

(w) Net other income (expenses)

(i) Interest income

The details of interest income were as follows:

Interest income from loans and receivables Interest income from bank deposits	For the years ended December 31,	For the years ended December 31,
	2020 $ 8,929 147 $ 9,076	2019
		7,309 139 7,448

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(ii) Other gains and losses

The details of other gains and losses were as follows:

Foreign exchange gains (losses) Gains (losses) on financial assets (liabilities) at fair value through profit or loss Dividends income Rent income Gains (losses) on disposals of property, plant and equipment Other (iii) Finance costs The details of finance costs were as follows: Interest expense: Borrowings Interest expense: lease liabilities Total (x) Financial instruments (i) Types of financial instruments 1) Financial assets Cash and cash equivalents Financial assets measured at fair value through profit and loss Notes receivables Trade receivables Other receivable due from related parties Other current financial assets Non-current financial assets measured at fair value through profit and loss Other non-current assets, other Total	For the years ended December 31,	For the years ended December 31,
	2020 2019 $ 252,442 83,566 (64,220) (70,149) 83,267 82,270 38,531 52,832 27,535 22,678 81,562 56,808 $ 419,117 228,005 For the years ended December 31,
	2020 $ 74,778 3,363 $ 78,141 December 31, 2020 $ 290,515 20,454 861,623 2,441,080 612,228 23,865 2,277,088 55,371 $ 6,582,224	2019 76,099 4,094 80,193 December 31, 2019
		251,020 439 870,680 1,917,060 206,100 50,309 1,946,129 40,908
		5,282,645

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

2) Financial liabilities

Short-term borrowings Short-term notes and bills payable Financial liabilities measured at fair value through profit and loss: Notes payable Trade payable Other payables Other current liabilities, others Guarantee deposits received Lease liabilities Total	December 31, 2020 $ 4,638,406 1,700,000 23,199 30,369 1,483,545 778,066 234,714 75,790 216,769 $ 9,180,858	December 31, 2019
		4,116,166 1,800,000 69,844 375,183 694,480 686,627 93,861 69,042 260,877
		8,166,080

(ii) Credit risk
1) Credit risk exposure

The carrying amount of financial assets and contract assets represents the maximum amount exposed to credit risk. As of December 31, 2020 and 2019, the Company’ s maximum exposure to credit risk amounted to $4,304,697 thousand and $3,336,077, respectively.

2) Concentration of credit risk

The Company has a broad customer base so there is no significant concentration of transactions with a single customer and the sales area is spread out. Therefore, there is no concentration of credit risk. In order to reduce credit risk, the Company also regularly and continuously evaluates the financial position of customers and requires customers to provide collateral when necessary.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(iii) Liquidity risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements.

December 31, 2020 Short-term borrowings Short-term notes and bills payable Financial liabilities measured at fair value through other comprehensive income: current Notes and trade payable Other payables Other current liabilities, others Guarantee deposits received Lease liabilities December 31, 2019 Short-term borrowings Short-term notes and bills payable Financial liabilities measured at fair value through other comprehensive income: current Notes and trade payable Other payables Other current liabilities, others Guarantee deposits received Lease liabilities	Carrying amount $ 4,638,406 1,700,000 23,199 1,513,914 229,132 234,714 75,790 216,769 $ 8,631,924 $ 4,116,166 1,800,000 69,844 1,069,663 206,500 93,861 69,042 260,877 $ 7,685,953	Contractual cash flows 4,649,515 1,700,686 23,199 1,513,914 229,132 234,714 75,790 222,871 8,649,821 4,141,103 1,800,545 69,844 1,069,663 206,500 93,861 69,042 272,377 7,722,935	Within 6 months 4,649,515 1,700,686 23,199 1,513,883 229,132 234,714 29,604 24,753 8,405,486 4,141,103 1,800,545 69,844 1,069,663 206,500 93,861 29,380 24,753 7,435,649	6-12 months - - - 31 - - 1,308 24,753 26,092 - - - - - - 2,843 24,753 27,596	1-2 years - - - - - - 15,647 49,122 64,769 - - - - - - 12,630 49,506 62,136	2-5 years - - - - - - 28,588 118,905 147,493 - - - - - - 23,989 165,874 189,863	Over 5 years
							- - - - - - 643 5,338
							5,981
							- - - - - - 200 7,491
							7,691

The Company does not expect the cash flows included in the maturity analysis to occur significantly earlier or at significantly different amounts.

(iv) Currency risk

1) Exposure to foreign currency risk

The Company’s significant exposure to foreign currency risk were as follows:

Financial assets Investments accounted for using the equity method USD Financial liabilities Monetary items USD EUR	December 31, 2020 Foreign currency Exchange rate TWD $ 247,465 28.480 7,047,801 124,565 28.540 3,554,831 - - -	December 31, 2020 Foreign currency Exchange rate TWD $ 247,465 28.480 7,047,801 124,565 28.540 3,554,831 - - -	December 31, 2019	December 31, 2019
	Foreign currency $ 247,465 124,565 -	Exchange rate 28.480 28.540 -	Foreign currency 213,651 89,693 3,013	Exchange rate TWD 29.980 6,405,252 30.030 2,693,482 34.740 104,684

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

2) Sensitivity analysis

The Company’ s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, trade and other receivables, loans and borrowings; and trade and other payables that are denominated in foreign currency. On December 31, 2020 and 2019, a strengthening (weakening) of 1% of the NTD against the USD and the CNY, ceteris paribus, would have increased (decreased) the net profit before tax by $35,548 thousand and $27,982 thousand, respectively. The analysis is performed on the same basis for both years.

3) Foreign exchange gain and loss on monetary items

Since the Company has many kinds of functional currency, the information on foreign exchange gain (loss) on monetary items is disclosed by total amount. For relevant information on foreign exchange gain (loss) (including realized and unrealized portions) in the years 2020 and 2019, please refer to Note 6(w).

(v) Interest rate analysis

Please refer to the notes on liquidity risk management and interest rate exposure of the Company's financial assets and liabilities.

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non-derivative financial instruments on the reporting date. Regarding assets with variable interest rates, the analysis is based on the assumption that the amount of assets outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases by 1% when reporting to management internally, which also represents the Company management's assessment of the reasonably possible interest rate change.

If the interest rate had increased / decreased by 1 basis points, ceteris paribus, the Company’s net income would have increased / decreased by $2,590 thousand and $9,239 thousand in 2020 and 2019, respectively. This is mainly due to the Company’s borrowing at variable rates and investment in variable-rate bills.

(vi) Fair value of financial instruments

1) Fair value hierarchy

The fair value of financial assets and liabilities at fair value through profit or loss, financial instruments used for hedging, and financial assets at fair value through other comprehensive income is measured on a recurring basis. The carrying amount and fair value of the Company’s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, disclosure of fair value information is not required:

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Financial assets measured at fair value through profit and loss Derivative instruments not used for hedging Corn structured swaps Forward exchange contracts Derivative instruments not used for hedging Stocks in listed companies Financial assets at fair value through other comprehensive income Subtotal Stocks in domestic listed companies Stocks in domestic unlisted companies Subtotal Financial liabilities at fair value through profit or loss Derivative instruments not used for hedging Option contracts Forward exchange contracts Subtotal		December 31, 2020	December 31, 2020	December 31, 2020	Total 11,969 8,046 439 20,454 2,196,917 80,171 2,277,088 (1,010) (22,189) (23,199)
	Book value $ 11,969 8,046 439 20,454 $ 2,196,917 80,171 $ 2,277,088 $ (1,010) (22,189) $ (23,199)		Fair value
		Level 1 - - 439 439 2,196,917 - 2,196,917 - - -	Level 2 11,969 8,046 - 20,015 - - - (1,010) (22,189) (23,199)	Level 3 - - - - - 80,171 80,171 - - -

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Financial assets measured at fair value through profit and loss Non-derivative financial assets Stocks in listed companies Financial assets measured at fair value through other comprehensive income Stocks in domestic listed companies Stocks in domestic unlisted companies Subtotal Financial liabilities measured at fair value through profit and loss Derivative instruments not used for hedging Forward exchange contracts		December 31, 2019	December 31, 2019	December 31, 2019	Total 439 1,865,452 80,677 1,946,129 (69,844)
	Book value $ 439 $ 1,865,452 80,677 $ 1,946,129 $ (69,844)		Fair value
		Level 1 439 1,865,452 - 1,865,452 -	Level 2 - - - - (69,844)	Level 3 - - 80,677 80,677 -

2) Valuation techniques for financial instruments measured at fair value

a) Financial instruments

If a financial instrument has a public quotation in an active market, said public quotation shall be the fair value. The market price announced by the major exchange is decided following the basis for the fair value of listed equity instruments.

A financial instrument is regarded as being quoted in an active market if quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service, or regulatory agency and those prices represent actual and regularly occurring market transactions on an arm’s-length basis. If the conditions above are not met, the market is deemed inactive. Generally speaking, wide bid-ask spreads, significant increases in bid-ask spreads, or very little trading volume are indicators of inactive markets.

If the financial instruments held by the Company have an active market, their fair values are listed as follows according to their categories and attributes:

． For listed companies, financial assets and liabilities traded in an active market have their fair values determined by market price.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

If the financial instruments held by the Company do not have an active market, their fair values are listed as follows according to their categories and attributes:

． Equity instruments without a quoted price: Fair value is estimated using comparable company valuation multiples. The main assumption is based on the surplus multiplier derived from the market price from comparable listed companies. This estimate has been adjusted for the discount effect by its lack of market liquidity.
b) The fair value of derivative financial products is the amount that the Company is expecting to obtain or to pay if it terminates the contract on the reporting date as agreed. It typically includes the unrealized gains and losses of unsettled contracts in the current period. Most of the derivative financial products of the Company have quotations from financial institutions for reference.
c) Non-financial instruments

For information on the evaluation of biological assets, please refer to Note 6(f). For information on the evaluation of investment properties, please refer to Note 6(k).

3) Transfers between Level 1 and Level 2

There were no significant transfers between Level 1 and Level 2 in both 2020 and 2019.

4) Reconciliation of Level 3 fair values

Opening balance, January 1, 2020 Capital reduction December 31, 2020 December 31, 2019 (same as balance at January 1, 2019)	Fair value through other comprehensive income $ 80,677 (506) $ 80,171 $ 80,677

5) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

Due to the fact that the Company’s Level 3 financial instruments measured at fair value through other comprehensive profit and loss has no active market public quotation and the relationship between the significant unobservable input value and the fair value cannot be fully grasped in practice, quantitative information is not exposed.

Most of the Company’s Level 3 financial instruments measured at fair value only has one single significant unobservable input. Only equity instrument investments without an active market have multiple significant unobservable inputs. The significant unobservable input values of equity instrument investments without an active market are independent of each other, so there is no correlation.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Quantified information of significant unobservable inputs was as follows:

Item Financial assets at fair value through other comprehensive income - equity investments without an active market	Valuation technique Comparable to listed companies Net Asset Value Method	Significant unobservable inputs
		．Discount due to lack of market liquidity (30% for both 2020.12.31 and 2019.12.31) ．P/E multiplier (26.59-36.67 and 19.73-21.89 for 2020.12.31 and 2019.12.31, respectively) ．Net Asset Value

Inter-relationship between significant unobservable inputs and fair value measurement

． The higher the discount due to the lack of market liquidity, the lower the fair value
． The higher the P/E multiplier and control premium, the higher the fair value

The estimated fair value would increase if the net asset value were higher

6) Valuation process of fair value measurements in Level 3

The fair value of the Company uses unobservable input values, and the observable input values must be significantly adjusted based on unobservable parameters to be classified as Level 3. The input value of this level is measured on the basis of the earnings multiplier derived from the market quotation of comparable listed companies. The evaluation results will then be checked later to ensure consistency with the evaluation source and ensure that the evaluation results are reasonable.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

7) Fair value measurements in Level 3 – sensitivity analysis of reasonably possible alternative assumptions

The Company's fair value measurement of financial instruments is reasonable, but using different evaluation models or evaluation parameters may lead to different evaluation results. Should the evaluation parameters change, the impact on the current profit and loss or other comprehensive income or loss for financial instruments classified as Level 3 is as follows:

December 31, 2020 Financial assets at fair value through profit or loss Equity instrument investment without an active market December 31, 2019 Financial assets at fair value through other comprehensive income Equity instrument investment without an active market	Input P/E ratio P/E ratio	Increasing or decreasing 5% 5%	Other comprehensive income Favourable Unfavoura ble 6,165 (6,165) 4,543 (4,543)

The favorable and unfavorable effects represent the changes in fair value, and fair value is based on a variety of unobservable inputs calculated using a valuation technique. The analysis above only reflects the effects of changes in a single input, and it does not include the interrelationships with another input.

(vii) Offsetting financial assets and financial liabilities

The Company performs transactions not applicable to the International Financial Reporting Standards Sections 42 NO. 32, but the Company has an exercisable master netting arrangement or similar agreement in place with its counterparties, and both parties reach a consensus regarding net settlement. The aforesaid exercisable master netting arrangement or similar agreement can be settled at the total amount. In the event of default involving one of the parties, the other party can have the transaction net settled. Relevant information is presented as follows:

December 31, 2020 Financial assets that are offset which have an exercisable master netting arrangement or similar agreement Gross amounts of recognized Gross amounts of financial liabilities offset in the Net amount of financial assets presented in the balance Amounts not off set in the balance sheet (d) financial assets (a) balance sheet (b) sheet (c)=(a)-(b) Financial instruments Cash collateral received Net amount (e)=(c)-(d) Forward exchange contracts $ 8,046 - 8,046 8,046 - - Corn structured swaps 11,969 - 11,969 - - 11,969 Total $ 20,015 - 20,015 8,046 - 11,969	December 31, 2020 Financial assets that are offset which have an exercisable master netting arrangement or similar agreement Gross amounts of recognized Gross amounts of financial liabilities offset in the Net amount of financial assets presented in the balance Amounts not off set in the balance sheet (d) financial assets (a) balance sheet (b) sheet (c)=(a)-(b) Financial instruments Cash collateral received Net amount (e)=(c)-(d) Forward exchange contracts $ 8,046 - 8,046 8,046 - - Corn structured swaps 11,969 - 11,969 - - 11,969 Total $ 20,015 - 20,015 8,046 - 11,969	December 31, 2020 Financial assets that are offset which have an exercisable master netting arrangement or similar agreement Gross amounts of recognized Gross amounts of financial liabilities offset in the Net amount of financial assets presented in the balance Amounts not off set in the balance sheet (d) financial assets (a) balance sheet (b) sheet (c)=(a)-(b) Financial instruments Cash collateral received Net amount (e)=(c)-(d) Forward exchange contracts $ 8,046 - 8,046 8,046 - - Corn structured swaps 11,969 - 11,969 - - 11,969 Total $ 20,015 - 20,015 8,046 - 11,969	December 31, 2020 Financial assets that are offset which have an exercisable master netting arrangement or similar agreement Gross amounts of recognized Gross amounts of financial liabilities offset in the Net amount of financial assets presented in the balance Amounts not off set in the balance sheet (d) financial assets (a) balance sheet (b) sheet (c)=(a)-(b) Financial instruments Cash collateral received Net amount (e)=(c)-(d) Forward exchange contracts $ 8,046 - 8,046 8,046 - - Corn structured swaps 11,969 - 11,969 - - 11,969 Total $ 20,015 - 20,015 8,046 - 11,969	December 31, 2020 Financial assets that are offset which have an exercisable master netting arrangement or similar agreement Gross amounts of recognized Gross amounts of financial liabilities offset in the Net amount of financial assets presented in the balance Amounts not off set in the balance sheet (d) financial assets (a) balance sheet (b) sheet (c)=(a)-(b) Financial instruments Cash collateral received Net amount (e)=(c)-(d) Forward exchange contracts $ 8,046 - 8,046 8,046 - - Corn structured swaps 11,969 - 11,969 - - 11,969 Total $ 20,015 - 20,015 8,046 - 11,969	December 31, 2020 Financial assets that are offset which have an exercisable master netting arrangement or similar agreement Gross amounts of recognized Gross amounts of financial liabilities offset in the Net amount of financial assets presented in the balance Amounts not off set in the balance sheet (d) financial assets (a) balance sheet (b) sheet (c)=(a)-(b) Financial instruments Cash collateral received Net amount (e)=(c)-(d) Forward exchange contracts $ 8,046 - 8,046 8,046 - - Corn structured swaps 11,969 - 11,969 - - 11,969 Total $ 20,015 - 20,015 8,046 - 11,969
Forward exchange contracts Corn structured swaps Total	Gross amounts of recognized financial assets (a) $ 8,046 11,969 $ 20,015	Gross amounts of financial liabilities offset in the balance sheet (b) - - -	Net amount of financial assets presented in the balance sheet (c)=(a)-(b) 8,046 11,969 20,015	Amounts not off set in the balance sheet (d) Financial instruments Cash collateral received 8,046 - - - 8,046 -
				Financial instruments 8,046 - 8,046
					- 11,969
					11,969

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

December 31, 2020 Financial liabilities that are offset which have an exercisable master netting arrangement or similar agreement Gross amounts of recognized financial Gross amounts of financial liabilities offset in the Net amount of financial liabilities presented in the balance Amounts not off set in the balance sheet (d) liabilities (a) balance sheet (b) sheet (c)=(a)-(b) Financial instruments Cash collateral received Net amount (e)=(c)-(d) Forward exchange contracts $ (22,189) - (22,189) (8,046) - (14,143) Option contracts (1,010) - (1,010) - - (1,010) Total $ (23,199) - (23,199) (8,046) - (15,153) December 31, 2019 Financial liabilities that are offset which have an exercisable master netting arrangement or similar agreement Gross amounts of recognized financial Gross amounts of financial liabilities offset in the Net amount of financial liabilities presented in the balance Amounts not off set in the balance sheet (d) liabilities (a) balance sheet (b) sheet (c)=(a)-(b) Financial instruments Cash collateral received Net amount (e)=(c)-(d) Forward exchange contracts $ (69,844) - (69,844) - - (69,844)	December 31, 2020 Financial liabilities that are offset which have an exercisable master netting arrangement or similar agreement Gross amounts of recognized financial Gross amounts of financial liabilities offset in the Net amount of financial liabilities presented in the balance Amounts not off set in the balance sheet (d) liabilities (a) balance sheet (b) sheet (c)=(a)-(b) Financial instruments Cash collateral received Net amount (e)=(c)-(d) Forward exchange contracts $ (22,189) - (22,189) (8,046) - (14,143) Option contracts (1,010) - (1,010) - - (1,010) Total $ (23,199) - (23,199) (8,046) - (15,153) December 31, 2019 Financial liabilities that are offset which have an exercisable master netting arrangement or similar agreement Gross amounts of recognized financial Gross amounts of financial liabilities offset in the Net amount of financial liabilities presented in the balance Amounts not off set in the balance sheet (d) liabilities (a) balance sheet (b) sheet (c)=(a)-(b) Financial instruments Cash collateral received Net amount (e)=(c)-(d) Forward exchange contracts $ (69,844) - (69,844) - - (69,844)	December 31, 2020 Financial liabilities that are offset which have an exercisable master netting arrangement or similar agreement Gross amounts of recognized financial Gross amounts of financial liabilities offset in the Net amount of financial liabilities presented in the balance Amounts not off set in the balance sheet (d) liabilities (a) balance sheet (b) sheet (c)=(a)-(b) Financial instruments Cash collateral received Net amount (e)=(c)-(d) Forward exchange contracts $ (22,189) - (22,189) (8,046) - (14,143) Option contracts (1,010) - (1,010) - - (1,010) Total $ (23,199) - (23,199) (8,046) - (15,153) December 31, 2019 Financial liabilities that are offset which have an exercisable master netting arrangement or similar agreement Gross amounts of recognized financial Gross amounts of financial liabilities offset in the Net amount of financial liabilities presented in the balance Amounts not off set in the balance sheet (d) liabilities (a) balance sheet (b) sheet (c)=(a)-(b) Financial instruments Cash collateral received Net amount (e)=(c)-(d) Forward exchange contracts $ (69,844) - (69,844) - - (69,844)	December 31, 2020 Financial liabilities that are offset which have an exercisable master netting arrangement or similar agreement Gross amounts of recognized financial Gross amounts of financial liabilities offset in the Net amount of financial liabilities presented in the balance Amounts not off set in the balance sheet (d) liabilities (a) balance sheet (b) sheet (c)=(a)-(b) Financial instruments Cash collateral received Net amount (e)=(c)-(d) Forward exchange contracts $ (22,189) - (22,189) (8,046) - (14,143) Option contracts (1,010) - (1,010) - - (1,010) Total $ (23,199) - (23,199) (8,046) - (15,153) December 31, 2019 Financial liabilities that are offset which have an exercisable master netting arrangement or similar agreement Gross amounts of recognized financial Gross amounts of financial liabilities offset in the Net amount of financial liabilities presented in the balance Amounts not off set in the balance sheet (d) liabilities (a) balance sheet (b) sheet (c)=(a)-(b) Financial instruments Cash collateral received Net amount (e)=(c)-(d) Forward exchange contracts $ (69,844) - (69,844) - - (69,844)	December 31, 2020 Financial liabilities that are offset which have an exercisable master netting arrangement or similar agreement Gross amounts of recognized financial Gross amounts of financial liabilities offset in the Net amount of financial liabilities presented in the balance Amounts not off set in the balance sheet (d) liabilities (a) balance sheet (b) sheet (c)=(a)-(b) Financial instruments Cash collateral received Net amount (e)=(c)-(d) Forward exchange contracts $ (22,189) - (22,189) (8,046) - (14,143) Option contracts (1,010) - (1,010) - - (1,010) Total $ (23,199) - (23,199) (8,046) - (15,153) December 31, 2019 Financial liabilities that are offset which have an exercisable master netting arrangement or similar agreement Gross amounts of recognized financial Gross amounts of financial liabilities offset in the Net amount of financial liabilities presented in the balance Amounts not off set in the balance sheet (d) liabilities (a) balance sheet (b) sheet (c)=(a)-(b) Financial instruments Cash collateral received Net amount (e)=(c)-(d) Forward exchange contracts $ (69,844) - (69,844) - - (69,844)
Financial liabilities that are offset which have an
Forward exchange contracts Option contracts Total	Gross amounts of recognized financial liabilities (a) $ (22,189) (1,010) $ (23,199)	Gross amounts of financial liabilities offset in the Net amount of financial liabilities presented in the balance balance sheet (b) sheet (c)=(a)-(b) - (22,189) - (1,010) - (23,199) December 31, 2019		Amounts not off set in the balance sheet (d) Financial instruments Cash collateral received (8,046) - - - (8,046) -
				Financial instruments (8,046) - (8,046)
Financial liabilities that are offset which have an
Forward exchange contracts	Gross amounts of recognized financial liabilities (a) $ (69,844)	Gross amounts of financial liabilities offset in the balance sheet (b) -	Net amount of financial liabilities presented in the balance sheet (c)=(a)-(b) (69,844)	Amounts not off set in the balance sheet (d) Financial instruments Cash collateral received - -
				Financial instruments -

Note: Master netting arrangements and non-cash financial collaterals are included.

(y) Financial risk management

(i) Overview

The Company has exposures to the following risks from its financial instruments:

1) credit risk
2) liquidity risk
3) market risk

The following likewise discusses the Company’ s objectives, policies and processes for measuring and managing the above-mentioned risks. For more disclosures about the quantitative effects of these risks exposures, please refer to the respective notes in the accompanying financial statements.

(ii) Structure of risk management

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The Company’ s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

The Company's Board of Directors oversees how management monitors compliance with the Company’ s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Company's Board of Directors is assisted in its oversight role by Internal Audit. Internal Audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the Board of Directors.

(iii) Credit risk

The Company’ s main credit risk lies in financial products of cash, equity securities, and accounts receivable. Cash is kept in different financial institutions. Equity securities held are funds issued by listed companies with excellent credit ratings. The Company controls the credit risks exposed to each financial institution and believes that the Company's cash and equity securities held will not have a significant concentration of credit risk.

1) Trade and other receivables

The Company's main potential credit risk comes from financial products in accounts receivable and other receivables. In order to reduce credit risk, the company continuously evaluates the financial position of customers, regularly assesses the possibility of recovering accounts receivable, and makes allowances for doubtful debts. The total loss of doubtful debts is within the management's expectations.

The credit risk exposure of the Company is mainly affected by the individual conditions of each customer. However, management also considers statistical data of the customer base, including the default risk of the customer's industry and country, as these factors may affect credit risk.

The Company’ s Risk Management Committee has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. Purchase limits are established for each customer and represent the maximum open amount without requiring approval from the Risk Management Committee; these limits are reviewed quarterly. Customers that fail to meet the Company’ s benchmark creditworthiness may transact with the Company only on a prepayment basis.

The Company’s main transaction customers are not new customers, and no impairment loss has been recognized for these customers. When monitoring the credit risk of customers, they are grouped according to their credit characteristics, including whether they are individuals or legal entities, whether they are distributors, retailers or end customers, their respective location, industry, age, expiry date, and previous existing financial difficulties. Customers rated as high risk will be monitored by the credit department.

The Company has set up allowances of doubtful debt to reflect estimates of the losses incurred in accounts receivable and other receivables and investments. The main components of the provision account include specific loss components related to individual major risk insurance, and the combined loss components established for similar asset groups that have occurred but have not been identified. The combined loss provision account is determined based on historical payment statistics of similar financial assets.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

2) Investments

The Company places orders of equity securities and trades futures through the centralized market. It is expected that the counterparty will not default, so there is no significant credit transaction risk.

The exposure to credit risk for the bank deposits, fixed income investments, and other financial instruments is measured and monitored by the Company’s finance department. The Company only deals with banks, other external parties, corporate organizations, government agencies and financial institutions with good credit rating. The Company does not expect any counterparty above fails to meet its obligations hence there is no significant credit risk arising from these counterparties.

3) Guarantees

For more information on the Company’ s policy to provide financial guarantees as of December 31, 2020 and 2019, please refer to Note 13(a).

(iv) Liquidity risk

The Company's capital and working capital are sufficient to meet all contractual obligations, so there is no liquidity risk caused by the inability to raise funds to fulfill contractual obligations. The changes in the fair value of the investment of the Company included in the profit and loss of financial assets have an active market, so it is expected that the financial assets can be quickly sold in the market at a price close to the fair value. The open positions of futures held by the Company can be liquidated in the market at a reasonable price, hence the liquidity risk is very low. The exchange rate of the forward foreign exchange contracts held by the Company has been determined, and there is no significant cash flow risk.

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it always has sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’ s reputation.

The Company aims to maintain the level of its cash and cash equivalents and other highly marketable debt investments at an amount in excess of expected cash flows on financial liabilities (other than trade payables) over the succeeding 60 days. This excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters. As of December 31, 2020 and 2019, the Company's unused credit line were amounted to $6,062,639 thousand and $3,932,677 thousand, respectively.

(v) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates, and equity prices, will affect the Company’ s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

In addition to the financial assets measured by cost, equity securities held by the Company also have financial assets whose fair value changes are included in the profit and loss and financial assets available for sale. Therefore, such assets are measured by fair value. Subsequently, the Company will be exposed to the risk of price volatility in the equity securities market.

The Company’s forward foreign exchange contracts are of a hedging nature, and the profits and losses arising from changes in interest rates or exchange rates will roughly offset the profits and losses of the hedged project, so the market price risk is not significant.

The Company engaged in futures and option trading contracts, and had set a stop loss point based on risk during operation. As the loss incurred can be controlled within the expected range, the market price risk is not significant to the company as a whole and can be reasonably expected.

1) Currency risk

The Company is exposed to currency risk on sales, purchases, and borrowings that are denominated in a currency other than the respective functional currencies of the Company’s entities, primarily the NTD, US Dollar (USD), and Chinese Yuan (CNY). The currencies used in these transactions are the NTD, USD, and CNY.

At any point in time, the Company hedges its estimated foreign currency exposure with respect to its forecast sales and purchases over the following six months. The Company also uses forward exchange contracts with a maturity of less than one year from the reporting date to hedge its currency risk.

For companies that use NTD as their functional currency, all USD loans borrowed will be hedged using forward contracts with the same maturity date as the loan repayment date.

Loan interest is priced in the currency of its principal. Typically, the currency of the loan is the same as the currency of the cash flow generated by the operation of the Company, mainly denominated in NTD, but sometimes in USD or CNY. In this case, economic hedging is provided without the need to sign derivatives, so hedging accounting is not adopted.

Regarding other monetary assets and liabilities denominated in foreign currencies, the Company buys or sells foreign currencies at real-time exchange rates to ensure that the net exposure risk remains at an acceptable level when short-term imbalances occur.

2) Interest rate risk

On December 31, 2020 and 2019, the short-term and long-term borrowings of the Company consisted of debts with floating interest rates. Therefore, changes in market interest rates will cause the effective interest rates of short-term and long-term borrowings to change accordingly. For detailed interest rate analyses with respect to fluctuations in future cash flows, please refer to Note 6(x).

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

3) Other market price risk

In addition to meeting the expected consumption and sales demand, the Company has not signed any commodity contracts; these commodity contracts are not delivered on a net basis.

(z) Capital management

The Board of Directors’ policy is to maintain a sound capital base to preserve the confidence of investors, creditors, and the market in order to support the development of future operations. Capital includes share capital, capital reserves, retained earnings, non-controlling interests and net liabilities of the Company. The Board of Directors controls the debt-to-capital ratio and at the same time controls the level of ordinary stock dividends.

The Company’s debt-to-equity ratios at the end of the reporting period as of December 31, 2020 and 2019, are as follows:

Total liabilities Less: Cash and cash equivalents Net debt Total equity Debt-to-equity ratio	December 31, 2020 $ 9,734,763 (290,515) $ 9,444,248 $ 20,181,078 % 31.88	December 31, 2019 8,682,146 (251,020) 8,431,126 18,227,130 % 31.63

(aa) Investing and financing activities not affecting current cash flow

The Company’s investing and financing activities which did not affect the current cash flow in the years ended December 31, 2020 and 2019, were as follows:

(i) For right-of-use assets under leases, please refer to Note 6(j).
(ii) Reconciliation of liabilities arising from financing activities were as follows:

Non-cash changes Rent Changes in exchange rates Acquisitions - - - - - - - - - 298 - - - - - 298 - -	Non-cash changes Rent Changes in exchange rates Acquisitions - - - - - - - - - 298 - - - - - 298 - -	December 31, 2020 4,638,406 1,700,000 75,790 216,769 195,000
Rent - - - 298 - 298	Changes in exchange rates - - - - - -
		6,825,965

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Short-term borrowings Short-term notes and bills payable Guarantee deposits received Lease liabilities Other current liabilities, others Total liabilties from financing activities	2019.1.1 $ 2,922,678 900,000 66,919 296,144 - $ 4,185,741	Cash flow 1,193,488 900,000 2,123 (47,237) 61,000 2,109,374	Non-cash changes Rent Changes in exchange rates - - - - - - 11,970 - - - 11,970 -	December 31, 2019 4,116,166 1,800,000 69,042 260,877 61,000
			Rent - - - 11,970 - 11,970
				6,307,085

(7) Related-party transactions:

(a) Names and relationship with related parties

The followings are related parties that have made transactions with the Company during the periods covered in the financial statements.

covered in the financial statements.
Name of related party	Relationship with the Company
Total Nutrition Tech. Co., Ltd.	Subsidiaries
Mei Lan Lei Co., Ltd.	Subsidiaries
Huang-Ho Invest. Co., Ltd.	Subsidiaries
Great Wall Feed Tech (Holdings) Ltd.	Subsidiaries
Oriental Best Foods Co., Ltd.	Subsidiaries
Saboten Co., Ltd.	Subsidiaries
KouChan Mill Co., Ltd.	Subsidiaries
City Chain Food Co., Ltd.	Subsidiaries
Honolulu Chain Food & Beverage Co., Ltd.	Subsidiaries
Xiang Cheng Co., Ltd.	Subsidiaries
An Hsin Chiao Chu Co., Ltd.	Subsidiaries
Wonder Biotek Co., Ltd.	Subsidiaries
Zhong Yi Food Co., Ltd.	Subsidiaries
Route 66 Fast Food Ltd.	Subsidiaries
Saboten (China) Limited	Subsidiaries
Beijing Universal Chain Food Co., Ltd.	Subsidiaries
Yung Huo (China) Co., Ltd.	Subsidiaries
Tianjin Fast Food Co.,Ltd	Subsidiaries
Tai Ji Food Co., Ltd.	Subsidiaries
Nanjing Tengcheng Enterprise Management	Subsidiaries
Co., Ltd

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Name of related party Relationship with the Company Shanghai Universal Chain Food Co., Ltd. Subsidiaries Saboten (Beijing) Limited Subsidiaries Shanghai Xunshi Foods Co., Ltd. Subsidiaries Beijing Duhsiaoyueh Restaurant Co.,Ltd Subsidiaries Shanghai Duhsiaoyueh Restaurant Co.,Ltd Subsidiaries Great Wall Yung Huo Food (Beijing) Co., Subsidiaries Ltd. Asia Nutrition Technologies Corporation Subsidiaries Waverley Star Ltd. Subsidiaries Great Wall Food (HK) Co., Ltd. Subsidiaries DaChan Showa Foods (Tianjin) Co., Ltd. Subsidiaries Seafood Internation Co., Ltd. Subsidiaries Tianjin Food Investment Co. Ltd. Subsidiaries Global Food Corporation Subsidiaries Clydebridge Ltd. Subsidiaries GreatWall Food Investment Co., Ltd. Subsidiaries Golden Harvest Inc. Subsidiaries Fresh Aqua Corporation Subsidiaries Great Wall FeedTech (Holdings) Ltd. Subsidiaries Asia Nutrition Technologies Investment Subsidiaries Corporation Dachan Food (Asia) Limited Subsidiaries Great Wall Northeast Asia Corporation Subsidiaries Impreza Investment Ltd. Subsidiaries Great Wall Agritech (Liaoning) Co., Ltd. Subsidiaries (Incorporated in BVI) Dongbei Agri. Corp. Subsidiaries Hwabei Agri. Corp. Subsidiaries Great Wall Kuang Ming Investment Co., Subsidiaries Ltd. Asia Nutrition Technologies (VN) Subsidiaries Investment Co., Ltd. Marksville Corp. Subsidiaries China S&F Farm Holdings Co., Ltd. Subsidiaries Great Wall Dalian Investment Co., Ltd. Subsidiaries

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Name of related party Relationship with the Company Miyasun Great Wall (BVI) Co., Ltd. Subsidiaries Miyasan-Great Wall Foods (Dalian) Co., Subsidiaries Ltd. Great Wall Food (Dalian) Co., Ltd. Subsidiaries Great Wall Agritech (Liaoning) Co., Subsidiaries Ltd.(Incorporated in HK) Great Wall Agritech (Liaoning) Co., Ltd. Subsidiaries Great Wall Agri (Hei Long Jiang) Co., Ltd. Subsidiaries Great Wall Agri (Henan) Co., Ltd. Subsidiaries Great Wall Agrotech Huludao Co., Ltd. Subsidiaries Great Wall Agri (Yingkou) Co., Ltd. Subsidiaries Great Wall Agri (Tieling) Co., Ltd. Subsidiaries DongBei Agri (Changchun) Co., Ltd. Subsidiaries Dachan Livestock Development Co, Ltd. Subsidiaries DaChan (Hunan) Feed Technologies Co., Subsidiaries Ltd. Dachan Food (Hebei) Co., Ltd. Subsidiaries Dachan Food (Panjin) Co., Ltd. Subsidiaries Dachan Wanda (HK) Ltd. Subsidiaries Union Manufacturing Ltd. Subsidiaries Dongbei (Beijing) Consultant Co., Ltd. Subsidiaries Dachan Wanda (Tianjin) Co., Ltd. Subsidiaries Yanzhou Dachan Food Co., Ltd. Subsidiaries Great Wall Gourmet (Shanghai) Co., Ltd. Subsidiaries Taixu & Dachan Foods Holdings Co., Ltd. Subsidiaries Zhenglanqi Dachan Eco-Ranch Co., Ltd. Subsidiaries Dachan Agricultural Technologies (Sichuan) Subsidiaries Co., Ltd. Bengbu Dachan Food Co., Ltd. Subsidiaries Tianjin Dachan Prospect Research and Subsidiaries Development Co., Ltd. Taixu & Dachan Foods (HK) Co., Ltd. Subsidiaries Taixu & Dachan Foods (Dalian) Co., Ltd. Subsidiaries Asia Nutrition Technologies (HN) Co., Ltd. Subsidiaries Asia Nutrition Technologies (VN) Co., Ltd. Subsidiaries

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Name of related party

Relationship with the Company

Asia Nutrition Technologies (LN) Co., Ltd. Subsidiaries Asia Nutrition Technologies (MV) Co., Ltd. Subsidiaries Asia Nutrition Technologies (Feed) Co., Subsidiaries Ltd. Dachan (Asia Pacific) Limited. Subsidiaries Dachan (VN) Company Limited Subsidiaries Dachan Aquaculture Limited. Subsidiaries PT. MUSTIKA MINANUSA AURORA. Subsidiaries PT. MISAJA MITRA Subsidiaries Dachan Aqua(Tarakan) Ltd. Subsidiaries PT. DACHAN MUSTIKS AURORA Subsidiaries Great Wall Food (Tianjin) Co., Ltd. Subsidiaries TNT Biotechnology Co., Ltd. Subsidiaries TNT Biotechnology (Tianjin) Co., Ltd. Subsidiaries Great Wall Milling Co., Ltd. Subsidiaries Great Wall FeedTech (Tianjin) Co., Ltd. Subsidiaries Grea Wall FeedTech (Ningxia) Co., Ltd. Subsidiaries Myint Dachan Company Limited Subsidiaries FoodChina Company Subsidiaries (Note) FoodChina Company Associates (Note) Neo Foods Co., Ltd. Subsidiaries Fresh Aqua Limited Subsidiaries Global Seafood Limited Subsidiaries Pacific Harvest Limited Subsidiaries Seafood International Limited Subsidiaries Global Seafood Limited Subsidiaries Pacific Harvest Limited Subsidiaries Universal Food Limited Subsidiaries Great Wall Grains International Limited Subsidiaries Beijing Sisters Kitchen Food and Beverage Key management personnel Management Co. Kou Feng Industrial Co., Ltd. Other related party TTET Union Corporation Other related party Master Channels Corporation Other related party

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Name of related party Relationship with the Company San Inn Abattoir Corporation Associates

Note: Recognized as a subsidairy since the third financial quarter of 2020.

(b) Significant transactions with related parties

(i) Sales

The amounts of significant sales by the Company to related parties were as follows:

Subsidiary FoodChina Company Associate Other related parties	For the years ended December 31,	For the years ended December 31,
	2020 $ 2,410,282 2,015,372 4,433 5,975 $ 4,436,062	2019
		1,906,270 2,751,372 - 43,970
		4,701,612

The abovementioned sales price and terms of trade are not significantly different from that of regular sales with other customers.

The sales price of Mei Lan Lei Co., Ltd. is adjusted according to the market price and the Company's policies. The credit period is 2 months.

Trade receivable from related parties were uncollateralized, and no expected credit loss were required after the assessment by the management.

(ii) Purchases

The amounts of significant purchases by the Company from related parties were as follows:

Mei Lan Lei Co., Ltd. Subsidiary FoodChina Company Other related parties	For the years ended December 31,	For the years ended December 31,
		2019
		3,931,612 297,726 1,141,889 322,450
		5,693,677

The terms and pricing of purchase transactions with related parties were not significantly different from those offered by other vendors except for Total Nutrition Tech Co., Ltd. and Mei Lan Lei Co., Ltd.. For Total Nutrition Tech Co., Ltd., the price was cost plus $3,000 per metric ton; for Mei Lan Lei Co., Ltd., the price was set following the market price and then adjusted in accordance with company policies.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(iii) Receivables from Related Parties

The receivables from related parties were as follows:

Account	Relationship	December 31, 2020 $ - 415,517 16,410 320,770 1,488 2,785 - $ 756,970	December 31, 2019
Notes receivables Trade receivables Trade receivables Trade receivables Trade receivables Other financial assets Other receivable due from related parties	Subsidiary Zhong Yi Food Co., Ltd. Subsidiary FoodChina Company Other related parties Subsidiary Subsidiary		384 80,597 47,911 97,369 582 37,129 56
			264,028

(iv) Payables to Related Parties

The payables to related parties were as follows:

Account	Relationship	December 31, 2020 $ 24,418 5,584 204,028 86,791 - 5,008 5,417 $ 331,246	December 31, 2019
Notes payable Notes payable Trade payable Trade payable Trade payable Other payable Trade payable	Mei Lan Lei Co,, Ltd. Subsidiary Mei Lan Lei Co,, Ltd. Subsidiary Associate Subsidiary Other related parties		371,424 3,536 99,752 24,905 26,395 563 15,110
			541,685

(v) Property transaction

1) Purchases of property, plant and equipment

On February 27, 2019, the Company purchased land of a factory located in Taoyuan Yangmei from a related party, Kou Feng Industrial Co., Ltd.. The land was 29,603.94 square meters and the transaction price was $916,989 thousand based on the apprasial reports issued by the CCIS Real Estate Joint Appraisers Firm and the Tianshia Real Estate Joint Appraisers Firm. As of March 22, 2019, ownership of the land has been transferred. As of June 25, 2019, all payments have been settled.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

2) Disposals of property, plant and equipment

The disposals of property, plant and equipment to related parties are summarized as follows:

Type of related party	For the years ended December 31,	For the years ended December 31,	For the years ended December 31,
	2020 Disposal price Gain (loss) from disposal $ 820,420 -	2019
	Disposal price $ 820,420	Disposal price -	Gain (loss) from disposal
Zhong Yi Food Co., Ltd.			-

In 2020, the Company sold land and buildings located in Chiayi to a related party, Zhong-Yi Food Co., Ltd.. The total disposal price was $820,420 thousand, which comprised of land totaling $149,176 thousand, buildings totaling $144,118 thousand, equipment totaling $447,787 thousand, and construction in progress totaling $79,339 thousand. Pricing of the above land and buildings was based on the valuation report from the CCIS Real Estate Joint Appraisers Firm, with the carrying amount as the trading price. Ownership of the land has been transferred. As of December 31, 2020, the payments have been settled.

(vi) Loans to Related Parties

The loans to related parties were as follows:

Mei Lan Lei Co., Ltd. Oriental Best Foods Co., Ltd. KouChan Mill Co., Ltd. Zhong Yi Food Co., Ltd. Subsidiary	December 31, 2020 $ 576,228 36,000 - - - $ 612,228	December 31, 2019
		- 36,000 40,000 127,044 3,000
		206,044

The interest charged to the Company is 1.2%. The loans to related parties are unsecured. As of December 31, 2020 and 2019, interest expense was $8,929 thousand and $7,309 thousand, respectively.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(vii) Borrowings from Related Parties

The borrowings from related parties were as follows:

Mei Lan Lei Co., Ltd. Total Nutrition Tech. Co., Ltd. Subsidiary	December 31, 2020 $ - 180,000 15,000 $ 195,000	December 31, 2019
		8,000 50,000 3,000
		61,000

The interest charged to the Group is 1.2%. The interest-bearing borrowings provided from related parties are unsecured. As of December 31, 2020 and 2019, interest expense was $931 thousand and $1,842 thousand, respectively.

(viii) Leases

Lessee Total Nutrition Tech. Co., Ltd. Zhong Yi Food Co., Ltd. Mei Lan Lei Co., Ltd. Subsidiary Subsidiary Subsidiary Subsidiary	Lease period 2013.1-2019.12 2017.6-2038.5 2016.5-2026.4 2019.1-2019.12 2017.12-2020.12 2020.1-2021.1 Cancellable lease	Item Land, office, factory, and warehouse Warehouse Warehouse Neihu office Office Factory Dormitory	Terms of payment Monthly Monthly Monthly Monthly Monthly Monthly Monthly	Rental income	Rental income
				2020 $ 9,585 1,441 11,429 4,531 22 22 296 $ 27,326	2019
					10,460 17,143 11,429 4,318 21 - 278
					43,649

The Company leased land, property, machinery, and surrounding facilities of native chicken slaughterhouses that use the electric stunning method in Liuying from its subsidiary Mei Lan Lei, Co., Ltd.. The lease period started from March 1, 2018 till December 31, 2020. When IFRS 16 was first applied to this lease on January 1, 2019, right-of-use assets of 166,186 thousand and lease liabilities of 166,186 thousand was recognized, respectively. For the years ended December 31, 2020 and 2019, 1,907 thousand and 2,310 thousand of interest expense was recognized, respectively. As of December 31, 2020 and 2019, lease liabilities amounted to 112,443 thousand and 139,516 thousand, respectively.

In December 2019, the Company signed a 10-year lease for the machinery of the Ma Chouhou meat processing plant with a contract value of 18,000 thousand. When IFRS 16 was first applied to this lease on December 1, 2019, right-of-use assets of 16,705 thousand and lease liabilities of 16,705 thousand were recognized, respectively. For the year ended December 31, 2020, there was no interest expense recognized. As of December 31, 2020, lease liabilities amounted to 16,705 thousand.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(ix) Management services

Management services for the years ended December 31, 2020 and 2019 comprised:

The Company signed contracts with Total Nutrition Tech Co., Ltd. to provide financial and administrative management services for $126 thousand per month (tax included). In addition, the Company also provides financial and administrative management services for Oriental Best Foods Co., Ltd., KuoChan Mill Co., Ltd., An Hsin Chiao Chu Co., Ltd., and City Chain Food Ltd.. Services charged monthly according to the actual services provided.

Total Nutrition Tech. Co., Ltd. KouChan Mill Co., Ltd. Oriental Best Foods Co., Ltd. Subsidiaries	For the years ended December 31,	For the years ended December 31,
	2020 $ 840 7,111 2,242 123 $ 10,316	2019
		1,440 6,855 2,242 -
		10,537

(x) Processing fee

Processing fees in 2020 and 2019 are as follows:

San Inn Abattoir Corporation Total Nutrition Tech. Co., Ltd.	For the years ended December 31,	For the years ended December 31,
	2020 $ 21,793 16,821 $ 38,614	2019 - 25,336 25,336

Key management personnel compensation comprised:

Key management personnel compensation comprised:
Short term employee benefits Post-employment benefits	For the years ended December 31,
	2020 $ 126,723 1,150 $ 127,873	2019
		97,530 1,037
		98,567

In 2020 and 2019, the Company recognized costs of $8,580 thousand and $7,296 thousand for 5 and 4 cars for the use of key management personnel, respectively.

(8) Pledged assets:None

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(9) Commitments and contingencies:

(a) The Company’s unrecognized contractual commitments are as follows:

The Company’s unrecognized contractual commitments are as	follows:
Acquisition of property, plant and equipment (unpaid)	December 31, 2020 $ 888,292	December 31, 2019
		611,507

(b) The Company’s outstanding standby letter of credit are as follows:

Outstanding standby letter of credit	December 31, 2020 USD 22,003 EUR 1,776	December 31, 2019
		47,742
		-

Outstanding promissory notes	December 31, 2020 $ 11,911,200	December 31, 2019
		9,891,585

(10) Losses Due to Major Disasters:None

(11) Subsequent Events:None

(12) Other:

(a) A summary of current-period employee benefits, depreciation, and amortization, by function, is as follows:

By funtion By item		For the year ended December 31	For the year ended December 31	For the year ended December 31	For the year ended December 31	For the year ended December 31
		2020		2019
	Cost of Sale	Operating Expense	Total	Cost of Sale	Operating Expense	Total
Employee benefits
Salary	781,676	877,663	1,659,339	722,284	866,001	1,588,285
Labor and health insurance	73,342	73,972	147,314	70,016	67,461	137,477
Pension	26,460	34,433	60,893	23,740	32,510	56,250
Remuneration of directors	-	53,950	53,950	-	37,700	37,700
Others	56,311	45,028	101,339	54,652	42,417	97,069
Depreciation	394,115	66,813	460,928	443,432	68,790	512,222
Depletion	-	-	-	-	-	-
Amortization	16,709	-	16,709	15,008	-	15,008

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

A summary of the number of employees and employee benefit expenses is as follows:

Number of employees Board of directors Average employee benefit expense Average employee wage expense Average employee wage adjustment rate Supervisors' remuneration	For the years ended December 31, 2020 2019 2,462 2,378 7 7 $ 802 793 $ 676 670 % 0.90 $ - -	For the years ended December 31, 2020 2019 2,462 2,378 7 7 $ 802 793 $ 676 670 % 0.90 $ - -
		2019
		2,378
		7
		793
		670
		-

The Company’s emolument policy (including the Board of Directors, managers, and employees) are as follows:

Great Wall Enterprise Co., Ltd.’s emolument policy is committed to provide employees with salaries and benefits above the industry average. Employees' remuneration includes a monthly salary, and quarterly performance bonuses. The bonus based on the company’s annual profitability, taking the Company's operation results into consideration, will be used to determine the total amount of performance bonues and emolument. The Company’ s memorandum stipulates that employee bonuses cannot be less than 2% of the Company’ s annual profits. The amount and method of distribution of managers and employees' remuneration depends on their position, contribution, and performance, which will then be approved by the Board of Directors through the remuneration committee.

Board members' remuneration depends on their position, contribution, and business performance of the Company while accounting for future risks. The Company's memorandum stipulates that remuneration for Board of Directors cannot exceed 2% of the Company's annual profits, and shall be approved by the Board of Directors through the remuneration committee as stipulated in the remuneration policies.

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(13) Other disclosures:

(a) Information on significant transactions:

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Company:

(i) Loans to other parties:

Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral	Collateral	Individual funding loan limits	Maximum limit of fund financing
													Item	Value
0	Great Wall Enterprise Co., Ltd.	Mei Lan Lei Co., Ltd.	Other receivables : related parties	Yes	1,600,000	1,600,000	576,228	1.2%	2	-	Business financing	-	None	-	4,036,216	8,072,431
0	〃	City Chain Food Ltd.	〃	Yes	100,000	100,000	-	1.2%	2	-	〃	-	〃	-	4,036,216	8,072,431
0	〃	Total Nutrition Tech. Co., Ltd.	〃	Yes	50,000	50,000	-	1.2%	2	-	〃	-	〃	-	4,036,216	8,072,431
0	〃	Huang-Ho Invest. Co., Ltd.	〃	Yes	50,000	50,000	-	1.2%	2	-	〃	-	〃	-	4,036,216	8,072,431
0	〃	An Hsin Chiao Chu Co., Ltd.	〃	Yes	30,000	30,000	-	1.2%	2	-	〃	-	〃	-	4,036,216	8,072,431
0	〃	Oriental Best Foods Co., Ltd.	〃	Yes	100,000	100,000	36,000	1.2%	2	-	〃	-	〃	-	4,036,216	8,072,431
1	Great Wall Internation al (Holding s) Ltd.	Great Wall Milling Co., Ltd.	〃	Yes	9,099	8,559	8,559	0	2	-	〃	-	〃	-	2,820,857	2,820,857
1	〃	Tianjin Food Investment Co., Ltd.	〃	Yes	336,056	316,112	316,112	3.5%	2	-	〃	-	〃	-	2,820,857	2,820,857
2	Dachan Food (Asia) Limited	Miyasun- Great Wall Foods (Dalian) Co., Ltd.	〃	Yes	106,155	99,855	99,855	0%	2	-	〃	-	〃	-	3,230,521	3,230,521
2	〃	Dachan Food (Hebei) Co., Ltd.	〃	Yes	266,904	251,064	251,064	0%	2	-	〃	-	〃	-	3,230,521	3,230,521
2	〃	Great Wall Agri (Yingkou) Co., Ltd.	〃	Yes	485,280	456,480	456,480	0%	2	-	〃	-	〃	-	3,230,521	3,230,521
2	〃	Dachan Wanda (Tianjin) Co., Ltd.	〃	Yes	818,910	770,310	770,310	0%	2	-	〃	-	〃	-	3,230,521	3,230,521
3	Greatwall FeedTech (Holding) Ltd.	Greatwall FeedTech (Tianjin) Co., Ltd.	〃	Yes	30,330	28,530	28,530	0%	2	-	〃	-	〃	-	163,166	163,166
4	Route 66 Fast Food Ltd.	Beijing Universal Chain Food Co., Ltd.	〃	Yes	34,880	32,810	32,810	0%	2	-	〃	-	〃	-	286,302	286,302
4	〃	Tai Ji Food Co., Ltd.	〃	Yes	44,464	41,825	41,825	0%	2	-	〃	-	〃	-	286,302	286,302
4	〃	Ma Cheng Co., Ltd.	〃	Yes	39,630	27,105	27,105	0%	2	-	〃	-	〃	-	286,302	286,302
8	Mei Lan Lei Co., Ltd.	Great Wall Enterprise Co., Ltd.	〃	Yes	95,000	95,000	-	1.2%	2	-	〃	-	〃	-	700,902	700,902
8	〃	Wonder Biotek Co., Ltd.	〃	Yes	20,000	20,000	-	1.2%	2	-	〃	-	〃	-	700,902	700,902
9	City Chain Food Ltd.	Tianjin Fast Food Co.,Ltd	〃	Yes	134,733	134,213	134,213	0%	2	-	〃	-	〃	-	706,864	706,864
9	〃	Tai Ji Food Co., Ltd.	〃	Yes	32,889	31,383	31,383	0%	2	-	〃	-	〃	-	706,864	706,864
9	〃	Ma Cheng Co., Ltd.	〃	Yes	5,000	5,000	5,000	1.2%	2	-	〃	-	〃	-	706,864	706,864

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Collateral	Collateral	Individual funding loan limits	Maximum limit of fund financing
													Item	Value
9	City Chain Food Ltd.	Route 66 Fast Food Ltd.	Other receivables : related parties	Yes	75,825	71,325	71,325	0%	2	-	〃	-	〃	-	706,864	706,864
9	〃	Great Wall Enterprise Co., Ltd.	〃	Yes	50,000	50,000	-	1.2%	2	-	〃	-	〃	-	706,864	706,864
9	〃	An Hsin Chiao Chu Co., Ltd.	〃	Yes	30,000	30,000	-	1.2%	2	-	〃	-	〃	-	706,864	706,864
10	Dachan Aquacultur e Limited (DAL)	PT. Misaja Mitra (MM)	〃	Yes	84,894	51,311	51,311	0%	2	-	〃	-	〃	-	183,454	183,454
10	〃	PT. Mustika Minanusa Aurora (MMA)	〃	Yes	30,330	14,265	14,265	0%	2	-	〃	-	〃	-	183,454	183,454
11	Total Nutrition Tech. Co., Ltd.	Great Wall Enterprise Co., Ltd.	〃	Yes	180,000	180,000	180,000	1.2%	2	-	〃	-	〃	-	283,330	283,330
11	〃	Huang-Ho Invest. Co., Ltd.	〃	Yes	50,000	-	-	1.2%	2	-	〃	-	〃	-	283,330	283,330
11	〃	Oriental Best Foods Co., Ltd.	〃	Yes	50,000	50,000	20,000	1.2%	2	-	〃	-	〃	-	283,330	283,330
12	Neo Foods Co., Ltd.	Great Wall Enterprise Co., Ltd.	〃	Yes	20,000	15,000	15,000	1.2%	2	-	〃	-	〃	-	19,481	19,481
13	Greatwall Northeast Asia Corporatio n (NAC)	Dachan Wanda (Tianjin) Co., Ltd.	〃	Yes	667,260	627,660	627,660	0%	2	-	〃	-	〃	-	3,295,453	3,295,453
14	Dachan Wanda (Tianjin) Co., Ltd.	Green Pac Bio Co., Ltd.	〃	Yes	28,526	28,416	28,416	4.6%	2	-	〃	-	〃	-	514,021	514,021
15	Taixu & Dachan Foods Co., Ltd.	Taixu & Dachan Foods (Bengbu) Co., Ltd.	〃	Yes	30,721	17,487	17,487	0%	2	-	〃	-	〃	-	57,595	57,595
16	TNT Biotechnol ogy Co., Ltd.	Great Wall Internation al (Holding s) Ltd.	〃	Yes	24,599	24,251	24,251	0%	2	-	〃	-	〃	-	127,560	127,560

Note 1: The purposes of fund financing for the borrower are classified as follows:

For those with business dealings: 1.
For those with short-term financing: 2.

Note 2: The total amount of loans to other parties must not exceed 40% of the Company’s net worth, while loans to individual entities must not exceed 20% of the Company’s net worth.

Note 3: The above-mentioned loans and transactions to related parties have been written off.

Note 4: For the subsidiaries, the total amount of loans to other parties and to individual entities must not exceed 40% of its net worth.

(ii) Guarantees and endorsements for other parties:

No.	Name of guarantor	Counter-party of guarantee and endorsement	Counter-party of guarantee and endorsement	Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements	Parent company endorsements/ guarantees to third parties on behalf of subsidiary	Endorsements/ guarantees to third parties on behalf of companies in Mainland China
		Name	Relationship with the Company
1	Great Wall International (Holdings) Ltd.	Dachan Liangyou Food (Shanghai) Co., Ltd.	5	7,052,142	307,208	306,022	172,684	-	% 4.34	14,104,284		Y
1	〃	Seafood Internation al Inc.	2	7,052,142	303,300	285,300	-	-	% 4.05	14,104,284	Y
1	〃	Great Wall Milling Co., Ltd.	2	7,052,142	424,620	342,360	205,017	-	% 4.85	14,104,284	Y

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

No.	Name of guarantor	Counter-party of guarantee and endorsement	Counter-party of guarantee and endorsement	Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements	Parent company endorsements/ guarantees to third parties on behalf of subsidiary	Endorsements/ guarantees to third parties on behalf of companies in Mainland China
		Name	Relationship with the Company
1	Great Wall International (Holdings) Ltd.	Great Wall Grains Internation al, Ltd.	2	7,052,142	713,250	713,250	-	-	% 10.11	14,104,284	Y
5	Asia Nutrition Technologie s (VN) Co., Ltd.	ANT FEED CO., LTD.	4	1,413,821	90,990	85,590	28,530	-	% 6.05	2,827,641
6	Liaoning Great Wall Agri- Industrial Co., Ltd.	Dachan Food (Hebei) Co., Ltd.	4	1,144,219	19,749	19,673	-	-	% 1.72	2,288,438		Y
7	Great Wall Agri (Hei Long Jiang) Co., Ltd	Liaoning Great Wall Agri- Industrial Co., Ltd.	4	440,754	129,758	13,902	13,902	3,180	% 3.15	881,508		Y

Note 1: Guarantees and endorsements for other parties are classified into six types of relationships as follows:

For those with business dealings.
For subsidiaries with over 50% of common shares.
When the parent company and its subsidiaries own more than 50% of common shares of the invested company.
When the parent company owns more than 50% of common shares of the company either directly or indirectly through its subsidiaries.
For those in the same industry who are contractually obligated to endorse each other due to projects.
For companies that are endorsed and guaranteed by each investor based on their shareholding ratio due to joint ventures.
For companies in the same industry engaged in pre-sale house sales contracts who are contractually obligated to provide guarantees and endorsements in accordance with the Consumer Protection Act.
Note 2: The total amount of guarantees and endorsements for other parties must not exceed the Company’s total net worth, while guarantees and endorsements for individual entities must not exceed 50% of the Company’s net worth.

Note 3: For subsidiaries, the total amount of guarantees and endorsements for other parties must not exceed double its total net worth and must not be higher than the Company’s total net worth. Guarantees and endorsements for individual entities must not exceed the subsidiary’s total net worth, and must not be higher than 50% of the Company’s total net worth.

(iii) Securities held as of December 31, 2020 (excluding investment in subsidiaries, associates and joint ventures):

Name of holder	Category and name of security	Relationship with company	Account title	Ending balance	Ending balance	Ending balance	Ending balance
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
Great Wall Enterprise Co., Ltd.	Ordinary shares: Lien Hwa Industrial Holdings Corp.	Board of Directors	Financial assets measured at fair value through profit or loss: current	36,974	439	-	439
	Ordinary shares: TTET Union Co.	Board of Directors	Financial assets measured at fair value through other comprehensive profit or loss: non-current	15,416,960	2,196,917	9.64	2,196,917
	Ordinary shares: China Trade and Development Co.	-	〃	20,004	199	0.03	199
	Ordinary shares: Da Chiang International Co., Ltd.	Board of Directors	〃	7,889,655	56,615	3.94	56,615
	Ordinary shares: ZHONG ZHDNG CO.,LTD.	-	〃	461,760	4,618	2.59	4,618
	Ordinary shares: Yo-Ho Beach Resort Co., Ltd.	-	〃	1,848,000	16,800	1.81	16,800
	Ordinary shares: Deyong Biological Technology Co., Ltd.	Board of Directors	〃	117,997	459	3.70	459
	Ordinary shares: Yahsen Frozen Foods Co., Ltd.	-	〃	40,425	-	0.08	-
Great Wall Enterprise Co., Ltd.	Ordinary shares: Hsin Tung Yang Co. Ltd.	-	Financial assets measured at fair value through other comprehensive profit or loss: non-current	137,000	1,480	0.16	1,480
Huang-Ho Invest. Co., Ltd.	Great Wall Enterprise Co., Ltd.	Company	Treasury shares	19,674,191	121,687	2.38	999,449
	Ordinary shares: Da Chiang International Co., Ltd.	Board of Directors	Financial assets measured at fair value through other comprehensive profit or loss: non-current	1,724,138	12,500	0.86	12,500

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Name of holder	Category and name of security	Relationship with company	Account title	Ending balance	Ending balance	Ending balance	Ending balance
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
Huang-Ho Invest. Co., Ltd.	Ordinary shares: TTET Union Co.	Board of Directors	Financial assets measured at fair value through other comprehensive profit or loss: non-current	2,457,997	350,264	1.54	350,264
City Chain Food Ltd.	Great Wall Enterprise Co., Ltd.	Company	Treasury shares	25,688,242	128,909	3.10	1,304,963
Oriental Best Foods Co., Ltd.	Cashbox Partyworld Co., Ltd.	-	Financial assets measured at fair value through other comprehensive profit or loss: non-current	26,010	1,055	0.02	1,055
Route 66 Fast Food Ltd.	Beijing Hengfengtai Catering Management Co., Ltd	-	〃	-	6,835	9.09	6,835
Great Wall Food (Hong Kong) Co., Ltd.	Dynasty Club	-	〃	-	349	-	349

Note 1: The assumptions made of the market price is as follows:

For those with an open market price, it refers to the average closing price as of the date on the balance sheet. However, for open end funds, the market price refers to its net asset value as of the date on the balance sheet.
For those without an open market price, net asset value per share is used.
(iv) Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20% of the capital stock:None
(v) Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:

							(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Name of company	Name of property	Transaction date	Transaction amount	Status of payment	Counter- party	Relationship with the Company	If the counter-party is a related party, disclose the previous transfer information				References for determining price	Purpose of acquisition and current condition	Others
							Owner	Relationshi p with the Company	Date of transfer	Amount
Great Wall Enterprise Co., Ltd.	Property, plant, and equipment	2020.2.3	820,420	Complete	Zhong Yi Food Co., Ltd.	Subsidiary	Note	Note	Note	-	CCIS Real Estate Joint Appraisers Firm

Note: Information not found as the previous transfer took place ages ago.

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

Name of company	Related party	Nature of relationship	Transaction details	Transaction details	Transaction details	Transaction details	Transactions with terms different from others	Transactions with terms different from others	Notes/Accounts receivable (payable)	Notes/Accounts receivable (payable)
			Purchase/Sale	Amount	Percentage of total purchases/sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
Great Wall Enterprise Co., Ltd.	Mei Lan Lei Co., Ltd.	Subsidiary	Purchase	3,780,189	% 19	2 months	-		(228,446)	% (32)
Great Wall Enterprise Co., Ltd.	FoodChina Company	Associate	Sale	2,015,372	% 9	Same as regular customers	-		320,770	% 13
Great Wall Enterprise Co., Ltd.	TTET Union Corporation	Other related party	Purchase	267,430	% 1	Same as regular customers	-		(5,417)	% (1)
Great Wall Enterprise Co., Ltd.	Total Nutrition Tech. Co., Ltd.	Subsidiary	Purchase	338,787	% 2	Same as regular customers	-		(20,729)	% (4)
Great Wall Enterprise Co., Ltd.	FoodChina Company	Associate	Purchase	813,464	% 4	Same as regular customers	-		(59,558)	% (4)
Great Wall Enterprise Co., Ltd.	Mei Lan Lei Co., Ltd.	Subsidiary	Sale	1,235,034	% 5	2 months	-		-	% -
Great Wall Enterprise Co., Ltd.	Zhong Yi Food Co., Ltd.	Subsidiary	Sale	816,920	% 3	270 days	-		415,517	% 14
Great Wall Enterprise Co., Ltd.	Total Nutrition Tech. Co., Ltd.	Subsidiary	Sale	283,737	% 1	Same as regular customers	-		10,818	% -

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Name of company	Related party	Nature of relationship	Transaction details Purchase/Sale Amount Percentage of total purchases/sales Payment terms	Transaction details Purchase/Sale Amount Percentage of total purchases/sales Payment terms	Transaction details Purchase/Sale Amount Percentage of total purchases/sales Payment terms	Transaction details Purchase/Sale Amount Percentage of total purchases/sales Payment terms	Transactions with terms different from others	Transactions with terms different from others	Notes/Accounts receivable (payable)	Notes/Accounts receivable (payable)	Note
				Amount	Percentage of total purchases/sales	Payment terms	Unit price	Payment terms	Ending balance	Percentage of total notes/accounts receivable (payable)
Mei Lan Lei Co., Ltd.	TTET Union Corporation	Other related party	Purchase (Outsourced)	287,877	% -	Same as regular customers	-		-	% -

Note: Transactions between the parent company and its subsidiaries have been written off.

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

Name of company	Counter-party	Nature of relationship	Ending balance	Turnover rate	Overdue	Overdue	Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
Great Wall Enterprise Co., Ltd.	FoodChina Company	Subsidiary	320,770 (Note)	% 15.90	-		320,689	-
Great Wall Enterprise Co., Ltd.	Zhong Yi Food Co., Ltd.	Subsidiary	415,517 (Note)	% 12.12	-		22,089	-
Mei Lan Lei Co., Ltd.	Great Wall Enterprise Co., Ltd.	Subsidiary	228,446 (Note)	% 8.72	-		158,697	-

Note 1: Refers to trade receivables and notes receivables.

Note 2: Transactions between the parent company and its subsidiaries have been written off.

(ix) Trading in derivative instruments:Please refer to notes 6(b)
(x) Business relationships and significant intercompany transactions:

For business relationships and significant intercompany transactions between the parent company and its subsidiaries (written off in the consolidated financial statements), please refer to "Business relationships and significant intercompany transactions" in the consolidated financial statements for the year ended December 31, 2020.

(b) Information on investees:

The following is the information on investees for the years ended December 31, 2020 (excluding information on investees in Mainland China):

(In USD/HKD)

Name of investor	Name of investee	Location	Main businesses and products	Original inve	stment amount	Balance	as of December 31,	2020	Net income (losses) of investee	Share of profits/losses of investee
				December 31, 2020	December 31, 2019	Shares (thousands)	Percentage of wnership	Carrying value
Great Wall Enterprise Co., Ltd.	Total Nutrition Tech. Co., Ltd.	Taiwan	Feed	314,006	314,006	48,149,500	% 100.00	703,734	139,580	139,580
	Huang-Ho Invest. Co., Ltd.	〃	Investments	249,395	314,395	14,500,000	% 100.00	352,683	11,914	11,914
	Great Wall International (Holdings) Ltd.	Hong Kong	Holdings	2,122,110	2,122,110	70,490,813	% 100.00	7,047,801	507,311	507,311
	City Chain Food Ltd.	Taiwan	Fast Food Restaurants	856,496	856,496	132,062,705	% 100.00	448,490	(99,851)	(99,851)
	Mei Lan Lei Co., Ltd.	〃	Production, sale, and research of feed	120,010	120,010	48,000,000	% 100.00	1,756,668	678,811	678,811
	KouChan Mill Co., Ltd.	〃	Flour production and sales	373,799	79,750	33,550,000	% 55.00	462,029	55,002	30,251
	Oriental Best Foods Co., Ltd.	〃	Food processing and sale	141,405	141,405	72,061	% 90.00	197,554	20,313	18,282
	An Hsin Chiao Chu Co., Ltd.	〃	Sale of fresh meat	55,000	20,000	5,500,000	% 100.00	10,472	(5,716)	(5,716)
	Neo Foods Co., Ltd.	〃	Food manufacturing and sale	50,000	-	5,000,000	% 100.00	48,702	(1,298)	(1,298)
	Great Wall FeedTech Enterprise Co., Ltd.	〃	Production, sale, and research of feed	37,274	37,274	340,000	% 100.00	5,847	744	744
	Wonder Biotek Co., Ltd.	〃	Medicine production and sales	150,000	100,000	15,000,000	% 100.00	50,946	(44,540)	(44,540)
	Zhong Yi Food Co., Ltd.	〃	Egg production and sale	780,000	160,000	78,000,000	% 65.00	746,873	56,540	36,751
	San Inn Abattoir Co.	〃	Abattoir	66,469	-	1,116,000	% 40.00	66,469	-	-
City Chain Food Ltd.	Nisshi Chain Co., Ltd.	〃	Bakery	68,459	68,459	4,364,652	% 67.29	10,041	(5,325)	(3,583)
	Saboten Co., Ltd.	〃	Japanese restaurants	39,000	39,000	2,000,000	% 50.00	64,282	22,654	11,327
	Route 66 Fast Food Ltd.	Hong Kong	Investment holdings	USD 29,668,603	USD 24,642,247	26,592,247	% 100.00	143,150	(52,454)	(52,454)
	Saboten (China) Limited	〃	Investment holdings	USD 1,250,000	USD 1,250,000	1,550,000	% 50.00	56,530	21,199	10,599
	DaChan Shin Yeh Ltd.	〃	Chinese and western fast food	USD 700,000	USD 700,000	700,000	% 40.00	17,695	(3,409)	(1,364)
	Honolulu Chain Food & Beverage Co., Ltd.	Taiwan	Chinese and western fast food	11,000	11,000	11,000,000	% 55.00	9,556	(8,205)	(4,513)
	Xiang Cheng Co., Ltd.	〃	Chinese food and dining	5,000	5,000	500,000	% 50.00	4,235	82	41
	Ma Cheng Co., Ltd.	〃	Western food and dining	18,000	18,000	1,800,000	% 90.00	2,025	(4,384)	(3,945)
Total Nutrition Tech. Co., Ltd.	TNT Biotechnology Co., Ltd.	Hong Kong	Investment holdings	USD 13,110,000	USD 13,110,000	13,110,000	% 100.00	318,899	46,203	46,203
Great Wall International (Holdings) Ltd.	Asia Nutrition Technologies Corporation Co., Ltd.	〃	Investment holdings	USD 7,391,940	USD 7,391,940	6,690,472	% 100.00	1,211,975	132,485	132,485
	Greatwall Food Investment (H.K.) Co., Ltd.	〃	Investment holdings	USD 62,500,000	USD 62,500,000	54,220,000	% 100.00	(1,401)	(308)	(308)
										(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of December 31, 2020	Balance as of December 31, 2020	Balance as of December 31, 2020	Net income (losses) of investee	Share of profits/losses of investee
				December 31, 2020	December 31, 2019	Shares (thousands)	Percentage of wnership	Carrying value
Great Wall International (Holdings) Ltd.	Greatwall Food (H.K.) Co., Ltd.	Hong Kong	Food wholesale	USD 500,000	USD 500,000	500,000	% 100.00	(13,781)	(1,598)	(1,598)
	FoodChina Inc.	〃	Investment holdings	USD 5,070,000	USD 1,680,000	19,700,000	% 53.39	191,603	15,826	8,450
	Seafood International Inc.	〃	Investment holdings	USD 4,183,974	USD 4,183,974	3,744,000	% 100.00	100,765	-	-
	Tianjin Food Invest Co.,Ltd	〃	Investment holdings	USD 9,729,433	USD 9,729,433	9,500,000	% 78.40	874,245	10,468	8,207
	Waverly Star Ltd.	〃	Investment holdings	USD 29,160,858	USD 29,160,858	29,160,858	% 100.00	2,970,013	316,097	316,097
	Golden Harvest Inc.	〃	Investment holdings	USD 1	USD 1	1	% 100.00	(17,048)	(1,942)	(1,942)
	Great Wall FeedTech (Holdings) Ltd.	〃	Investment holdings	USD 10,630,000	USD 10,630,000	8,260,000	% 100.00	407,914	16,499	16,499
	Clydebridge Ltd.	〃	Investment holdings	USD 3,544,000	USD 3,544,000	3,544,000	% 94.66	260,764	52,594	49,785
	Global Food Corp.	〃	Aquaculture trading	USD 1	USD 1	1	% 100.00	(515)	-	-
	Gallant Dachan Seafood Co., Ltd.	Vietnam	Aquaculture processing and sales	USD 2,500,000	USD 2,500,000	2,500,000	% 50.00	108,890	26,409	13,204
	Dachan (Asia-Pacific) Limited	Hong Kong	Investment holdings	USD 11,200,000	USD 11,200,000	11,200,000	% 75.17	7,574	(61,207)	(46,009)
	Fresh Aqua Corporation	〃	Aquaculture trading	USD 1	USD 1	1	% 100.00	-	-	-
	Fresh Aqua Limited	〃	Aquaculture trading	USD 1,282	USD -	1,282	% 100.00	15,888	16,446	16,446
	Great Wall Grains International Limited	〃	Commodity trading	USD 1,000,000	USD -	1,000,000	% 100.00	28,356	(129)	(129)
	Global Seafood Limited	〃	Aquaculture trading	USD 1,282	USD -	1,282	% 100.00	5,234	5,392	5,392
	Pacific Harvest Limited	〃	Aquaculture trading	USD 1,282	USD -	1,282	% 100.00	(67)	(108)	(108)
	Seafood International Limited	〃	Aquaculture trading	USD 1,282	USD -	1,282	% 100.00	9,982	10,319	10,319
	Universal Food Limited	〃	Aquaculture trading	USD 1,282	USD -	1,282	% 100.00	16,778	17,370	17,370
	Myint Dachan Company Limited	Myanmar	Production and sale of feed	USD 10,494,097	USD 8,964,097	10,494,097	% 51.00	292,112	(15,023)	(7,662)
Waverly Star Ltd.	Dachan Food (Asia) Limited	〃	Investment holdings	USD 29,160,858	USD 29,160,858	375,899,946	% 36.99	2,973,446	854,901	316,228
Asia Nutrition Technologies Corporation	Dachan Food (Asia) Limited	〃	Investment holdings	USD 5,759,421	USD 5,759,421	152,924,906	% 15.05	1,209,796	854,901	128,663
Dachan Food (Asia)	Dachan (Asia-Pacific) Limited	〃	Investment holdings	USD 800,000	USD 800,000	800,000	% 5.37	541	(3,287)	-
	Food China Inc.	〃	Investment holdings	USD 300,000	USD 300,000	400,000	% 1.08	8,544	15,826	-
	Taiwan International Gene Co., Ltd.	Vietnam	Sale of boars for breeding purposes	USD 900,000	USD 900,000	900,000	% 30.00	25,632	-	-
Route 66 Fast Food Ltd.	Yung Huo (China) Co., Ltd.	Hong Kong	Investment holdings	USD 3,713,685	USD 3,713,685	3,730,000	% 79.03	23,241	(194)	(154)
	FoodChina Inc.	〃	Investment holdings	USD 137,122	USD 138,364	400,000	% 1.08	3,905	15,826	(26)
TNT Biotechnology Co., Ltd.	TNT Huabang Holdings Limited	〃	Investment holdings	USD 1,385,160	USD 1,825,728	1,110,000	% 100.00	34,292	8,240	8,240

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

(In Thousands of CNY/USD)

Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2019	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of December 31, 2020	Net income (losses) of the investee	Percentage of ownership	Investment income (losses)	Book value	Accumu-lated remittance of earnings in currentperiod
					Outflow	Inflow
Great Wall Food (Tianjin) Co., Ltd.	Production and sale of flour related products	9,378	( 2 )	53,136	-	-	53,136	4,069	78.40%	3,190	954,749	-
Miyasun-Great Wall Foods (Dalian) Co., Ltd.	Production and sale of processed chicken products	9,872	( 2 )	-	-	-	-	15,187	52.04%	8,231	142,949	-
Great Wall Foods (Dalian) Co., Ltd.	Production and sale of chicken and feed	26,600	( 2 )	315,908	-	-	315,908	329,906	30.70%	101,281	700,406	-
Liaoning Great Wall Agri- Industrial Co., Ltd.	Production and sale of feed	19,201	( 2 )	229,600	-	-	229,600	97,879	52.04%	50,936	615,036	-
Great Wall Agri (Hei Long Jiang) Co., Ltd.	Production and sale of feed	1,563	( 2 )	-	-	-	-	26,703	52.04%	13,896	242,735	-
Great Wall Agri (Yingkou) Co., Ltd.	Production and sale of feed	14,636	( 2 )	57,813	-	-	57,813	131,159	52.04%	68,255	(11,086)	-
Great Wall Agri (Tieling) Co., Ltd.	Production and sale of chicken and feed	14,151	( 2 )	84,655	-	-	84,655	48,907	52.04%	25,451	651,216	-

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2019	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of December 31, 2020	Net income (losses) of the investee	Percentage of ownership	Investment income (losses)	Book value	Accumu-lated remittance of earnings in currentperiod
					Outflow	Inflow
Dachan Wanda (Tianjin) Co., Ltd.	Production and sale of chicken and feed	579,060	( 2 )	-	-	-	-	87,214	52.04%	45,386	668,742	-
Qingdao Dachan Technologies Feed Co., Ltd.	Production and sale of feed	-	( 2 )	-	-	-	-	(213)	-%	(111)	-	-
Dongbei (Beijing) Consultant Co., Ltd.	Management consulting services	500	( 2 )	-	-	-	-	(4,402)	52.04%	(2,291)	(7,595)	-
Beijing FoodChina Online Information & Technology Ltd.	Feed trading, animal products wholesale, and feed and agricultural products retail	59,874	( 2 )	-	-	-	-	(7,173)	55.03%	(3,947)	12,609	-
Dongbei Agri (Changchun) Co., Ltd.	Production and sale of feed	1,111	( 2 )	19,483	-	-	19,483	22,636	52.04%	11,780	96,876	-
Great Wall Agri (Henan) Co., Ltd.	Production and sale of feed	1,900	( 2 )	-	-	-	-	(1,316)	52.04%	(685)	3,685	-
Great Wall Gourmet(Shan ghai) Co., Ltd.	Production and sale of chicken, pork, and frozen processed foods	6,940	( 2 )	82,000	-	-	82,000	(12,383)	52.04%	(6,444)	84,635	-
DaChan Showa Foods (Tianjin) Co., Ltd.	Production and sale of flour related products	8,950	( 2 )	26,158	-	-	26,158	29,150	55.00%	16,032	180,224	-
Dachan (Hunan) Feed Technologies Co., Ltd.	Production and sale of feed	2,234	( 2 )	-	-	-	-	(5,934)	52.04%	(3,088)	27,467	-
Dachan Food (Hebei) Co., Ltd.	Production and sale of feed	53,767	( 2 )	-	-	-	-	(215,098)	52.04%	(111,937)	24,615	-
Dachan Food (Panjin) Co., Ltd.	Production and sale of chicken	3,000	( 2 )	-	-	-	-	(2,254)	52.04%	(1,173)	46,224	-
Dachan Liangyou Food (Shanghai) Co., Ltd.	Production and sale of flour related products	200,000	( 2 )	-	-	-	-	47,044	43.00%	20,229	257,534	-
Great Wall Agrotech Huludao Co., Ltd.	Production and sale of feed	3,800	( 2 )	-	-	-	-	1,524	52.04%	793	50,768	-
Great Wall FeedTech (Tianjin) Co., Ltd.	Production and sale of feed	14,536	( 2 )	-	-	-	-	24,717	100.00%	24,717	423,286	-
Shanghai Universal Chain Food Co., Ltd.	Italian food and dining, bakery, and restaurant management services	3,100	( 2 )	101,680	-	-	101,680	(4,063)	100.00%	(4,063)	156,174	-
Great Wall Yung Huo Food (Beijing) Co., Ltd.	Chinese fast food chains	15,954	( 2 )	44,647	-	-	44,647	(137)	79.03%	(108)	(14,308)	-
Nanjing Tengcheng Enterprise Management Co., Ltd	Restaurant management	21,006	( 2 )	37,902	-	-	37,902	7,601	100.00%	7,601	62,063	-
Beijing Universal Chain Food Co., Ltd.	Italian food and dining and bakery	5,580	( 2 )	87,449	28,248	-	115,697	(5,169)	100.00%	(5,169)	15,064	-
Saboten Catering Operation (Beijing) Co., Ltd.	Japanese food and dining and restaurant management services	2,500	( 2 )	46,938	-	-	46,938	25,572	50.00%	12,786	56,228	72,018
Shanghai Xunshi Foods Co., Ltd.	Chinese fast food chains	278	( 2 )	-	-	-	-	-	70.00%	-	(5,690)	-
Beijing Dingfenggang Catering Co.,Ltd.	Chinese fast food chains	3,000	( 2 )	29,641	-	-	29,641	(2,487)	55.00%	(1,368)	17,073	-

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2019	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of December 31, 2020	Net income (losses) of the investee	Percentage of ownership	Investment income (losses)	Book value	Accumu-lated remittance of earnings in currentperiod
					Outflow	Inflow
Beijing Duhsiaoyueh Restaurant Co.,Ltd	Chinese fast food chains	19,000	( 2 )	21,719	29,988	-	51,707	(25,641)	70.00%	(17,949)	3,418	-
Tianjin Fast Food Co.,Ltd	Food processing	5,800	( 2 )	175,676	-	-	175,676	8,347	100.00%	8,347	(40,406)	-
TNT Biotechnology (Tianjin) Co., Ltd.	Feed	11,602	( 2 )	303,344	-	-	303,344	39,018	100.00%	39,018	280,151	-
Taixu & DaChan Foods (Dalian) Co.,Ltd.	Production and sale of pork	21,595	( 2 )	-	-	-	-	1,119	20.82%	233	8,680	-
Shangdong Dachan Biotechnology Co., Ltd.	Production and sale of feed	3,000	( 2 )	-	-	-	-	28,240	52.04%	14,696	(47,786)	-
Tai Ji Food Co., Ltd.	Processing and sale of food	4,150	( 2 )	48,993	-	-	48,993	(38,668)	100.00%	(38,668)	(73,447)	-
Advent Prosperity Real Estate Development Co. Ltd	Real Estate	435,500	( 2 )	-	-	-	-	(9,892)	32.64%	(6,068)	1,122,859	-
Dachan Shinyeh Catering Management (Beijing) Co., Ltd.	Chinese and western fast food chains	1,670	( 2 )	20,792	-	-	20,792	(3,310)	40.00%	(1,324)	11,043	-
Shanghai Guangcheng Catering Co., Ltd	Chinese food and dining	4,884	( 2 )	-	-	-	-	(33,373)	20.68%	(5,006)	87,502	-
Hepeer Catering Management (Beijing) Co., Ltd.	Chinese food and dining	6,000	( 2 )	-	-	-	-	-	20.00%	-	2,080	-
TianJin Hai Rei Food Limited	Food processing	4,994	( 2 )	-	-	-	-	(1,125)	20.82%	(450)	3,372	-
Rupp & DaChan Foods (Tianjin) Co., Ltd.	Feed research	35,000	( 2 )	-	-	-	-	(12,405)	20.82%	(4,962)	54,025	-

(ii) Limitation on investment in Mainland China:

(In USD)

		(In USD)
Accumulated Investment in Mainland China as of December 31, 2020	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
(USD 69,145,001 ) 1,969,250	(USD 238,133,856 ) 6,782,052	12,108,647

Note 1: Investments are classified into four types as follows:

Investment in Mainland China companies by remittance through a third region
Establishing a company in a third region then investing in Mainland China companies.
Investment in Mainland China via reinvesting in an established company in a third region.
Direct investment in a Mainland China company.
Other.
Note 2: The relevant figures in the chart above related to foreign currencies have been converted to NTD according to the exchange rate as of the reporting date. For profit or loss recognition, conversion into NTD is made according to the annual and monthly weighted average exchange rate.

Note 3: This figure does not include capital surpluses.

(iii) Significant inter-company transactions with the subsidiaries in Mainland China:None

(Continued)

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(d) Major shareholders:

Major shareholders:
Shareholding Shareholder’s Name	Shares	Percentage
Fu-Chu Investment Co., Ltd.	71,086,943	% 8.59

Note: (i) The information of major shareholders includes shareholders who hold more than 5% of the Company’ s ordinary shares and preferred shares that have been delivered through non-physical registration (including treasury shares) on the last business day at the end of each quarter. There may be differences between the number of shares made through nonphysical registration documented in this financial report and the actual figure due to differences in the calculation basis implemented.
(ii) If the shareholder delivers the shares to the trust, the individual account of the trustee who opened the trust account is disclosed. As for the Statement of Changes in Beneficial Ownership filed in accordance with the Securities and Exchange Act by insiders owning 10% or more of the company's outstanding stock, their shareholding includes their own shareholding plus the shares delivered to the trust and with the right to use the trust's property. For information on insiders' Statements of Changes in Beneficial Ownership, please refer to Public Information Observatory.

(14) Segment information:

Please refer to the consolidated financial statements for the year ended 2020 for more information.

Great Wall Enterprise Co., Ltd.

Statement of cash and cash equivalents

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item Cash Bank deposits	Description Amount Cash on hand, revolving funds $ 5,343 Check deposits 194,389 Demand deposits 85,863 Foreign currency deposits 4,920 $ 290,515

Statement of financial assets measured at fair value

through profit or loss - current

Name of financial instrument Domestic listed company stocks Forward exchange contracts Structured swaps	Description Lien Hwa Industrial Holdings Co. Forward exchange purchased Corn structured swaps	Shares or units 36,974 - -	Par value Total amount $ 10 439 - 8,046 - 11,969 $ 20,454	Interest rate % - % - % -	Acquisition cost 6 - -	Fai	r value Total amount 439 8,046 11,969 20,454	Fair value changes is attributable to the changes in credit risk Note - - - -
						Unit price 12 - -

Great Wall Enterprise Co., Ltd.

Statement of notes receivable

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Client name Client A Client B Other: non-related-party	Description	Amount Note $ 124,758 Non-related-party 67,589 Amount per client < 5% 669,276 〃 $ 861,623

Statement of trade receivables

Client name Zhong Yi Food Co., Ltd. FoodChina Company Other: related-party Other: non-related-party Subtotal Less: allowance for bad debts	Description	Amount Note $ 415,517 Related party 320,770 〃 17,898 Amount per client < 5% 1,780,599 〃 2,534,784 (93,704) $ 2,441,080

Great Wall Enterprise Co., Ltd.

Statement of inventories

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item Raw materials and consumables Materials in transit Work in progress Finished goods Agricultural produce Total	Amount Cost Net realizable value Note $ 448,858 448,858 938,578 938,578 3,075 3,075 264,834 287,493 43,129 48,230 $ 1,698,474 1,726,234
	Cost $ 448,858 938,578 3,075 264,834 43,129 $ 1,698,474

Statement of prepayments

Item	Description	Amount Note $ 85,609 16,766 8,190 $ 110,565
	Prepayments to suppliers Prepayments to breeders Other

Great Wall Enterprise Co., Ltd.

Statement of biological assets - current For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Amount

Item	Description	Fair value $ - - $ -	Costs to sell 1,757 - 1,757	Cost 382,009 589,225 971,234	Accumulated depreciation (38,194) - (38,194)	Accumulated impairment - - -	Carrying amount Note 345,572 589,225 934,797
Poultry Livestock Total	Underage broiler, broilers, breeder poultry Underage swine, swine

Statement of other receivables

Name of financial instrument	Description	Fair value Note $ 21,080 2,785 $ 23,865
	Claims receivable and others Other

Great Wall Enterprise Co., Ltd.

Statement of other receivables: related-parties

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item Trades’ current account	Description	Amount Note $ 576,228 36,000 $ 612,228
	Mei Lan Lei Co., Ltd. Oriental Best Foods Co., Ltd.

Statement of other current assets

Item Temporary payments Prepaid sales tax	Description	Amount Note $ 75,194 3,551 $ 78,745
	Temporary payments for travelling costs and insurance, etc.

Great Wall Enterprise Co., Ltd.

Statement of financial assets measured at fair value through other

comprehensive income - non-current

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Name of financial instrument TTET Union Co. China Trade and Development Co. Da Chiang International Co., Ltd. ZHONG ZHDNG CO.,LTD. Yo-Ho Beach Resort Co., Ltd. International Network Capital Global Fund Deyong Biological Technology Co., Ltd. Yahsen Frozen Foods Co., Ltd. Hsin Tung Yang Co. Ltd.	Beginning balance Shares or units Fair value 15,416,960 $ 1,865,452 20,004 199 7,889,655 56,615 461,760 4,618 1,848,000 16,800 316,667 - 168,568 965 40,425 - 137,000 1,480 $ 1,946,129	Addition Shares or units Amount - 331,465 - - - - - - - - - - - - - - - - 331,465	Decrease Shares or units Amount - - - - - - - - - - 316,667 - 50,571 506 - - - - 506	Ending balance Shares or units Fair value 15,416,960 2,196,917 20,004 199 7,889,655 56,615 461,760 4,618 1,848,000 16,800 - - 117,997 459 40,425 - 137,000 1,480 2,277,088	Collateral Note
	Shares or units	Shares or units - - - - - - - - -	Shares or units - - - - - 316,667 50,571 - -
	15,416,960 20,004 7,889,655 461,760 1,848,000 316,667 168,568 40,425 137,000

Note: Addition: TTET Union Co. increased 331,465 thousand due to an upwards evaluation.

Note: Decrease: Deyong Biological Technology Co., Ltd. issued a capital reduction of 50,571 shares, totaling 506 thousand；International Network Capital Global Fund was liquidated and the remaining assets of 316,667 shares were distributed.

Great Wall Enterprise Co., Ltd.

Statement of changes in right-of-use assets

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item	Beginning balance $ 176,288 16,705 111,570 $ 304,563	Addition 298 - - 298	Decrease - - - -	Ending balance Note 176,586 16,705 111,570 304,861
Buildings and construction Machinery and equipment Other

Note: An additional 298 thousand of property was recognized this period.

Statement of changes in accumulated depreciation of

right-of-use assets

Item	Beginning balance $ 29,545 15,938 $ 45,483	Addition 29,606 15,938 45,544	Decrease - - -	Ending balance Note 59,151 31,876 91,027
Buildings and construction Other

Note: An additional 45,544 thousand of depreciation was recognized this period.

Great Wall Enterprise Co., Ltd.

Statement of changes in investments accounted for using the equity method

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Name of investee Total Nutrition Tech. Co., Ltd. Huang-Ho Invest. Co., Ltd. Great Wall Internation al (Holdings) Ltd. City Chain Food Ltd. Mei Lan Lei Co., Ltd. KouChan Mill Co., Ltd. Oriental Best Foods Co., Ltd. An Hsin Chiao Chu Co., Ltd. Zhong Yi Food Co., Ltd. Great Wall FeedTech Enterprise Co., Ltd. San Inn Abattoir Co. Wonder Biotek Co., Ltd. Neo Foods Co., Ltd.	Beginning balance Shares Amount 48,149,500 $ 579,390 21,000,000 595,274 70,490,813 6,405,252 132,062,705 501,441 48,000,000 1,077,857 10,930,838 168,724 72,061 188,107 2,000,000 (18,812) 16,000,000 52,583 340,000 5,103 - - 10,000,000 45,486 - - $ 9,600,405	Addition Shares Amount - 142,441 - 108,044 - 642,549 - 56,514 - 678,811 22,619,162 324,300 - 18,282 3,500,000 35,000 62,000,000 694,290 - 744 1,116,000 66,469 5,000,000 50,000 5,000,000 50,000 2,867,444	Decrease Shares Amount - 18,097 6,500,000 350,635 - - - 109,465 - - - 30,995 - 8,835 - 5,716 - - - - - - - 44,540 - 1,298 569,581	Ending balance Shares Percentage of ownership Amount 48,149,500 % 100.00 703,734 14,500,000 % 100.00 352,683 70,490,813 % 100.00 7,047,801 132,062,705 % 100.00 448,490 48,000,000 % 100.00 1,756,668 33,550,000 % 55.00 462,029 72,061 % 70.00 197,554 5,500,000 % 100.00 10,472 78,000,000 % 65.00 746,873 340,000 % 100.00 5,847 1,116,000 % 40.00 66,469 15,000,000 % 100.00 50,946 5,000,000 % 100.00 48,702 11,898,268	Ending balance Shares Percentage of ownership Amount 48,149,500 % 100.00 703,734 14,500,000 % 100.00 352,683 70,490,813 % 100.00 7,047,801 132,062,705 % 100.00 448,490 48,000,000 % 100.00 1,756,668 33,550,000 % 55.00 462,029 72,061 % 70.00 197,554 5,500,000 % 100.00 10,472 78,000,000 % 65.00 746,873 340,000 % 100.00 5,847 1,116,000 % 40.00 66,469 15,000,000 % 100.00 50,946 5,000,000 % 100.00 48,702 11,898,268	Market value or net assets value Unit price Total amount 15 703,734 24 352,683 100 7,047,801 3 448,490 37 1,756,668 14 462,029 2,741 197,554 2 10,472 10 746,873 17 5,847 60 66,469 3 50,946 10 48,702 11,898,268	Collateral Note None " " " " " " " " " " " "
	Shares	Shares - - - - - 22,619,162 - 3,500,000 62,000,000 - 1,116,000 5,000,000 5,000,000	Shares - 6,500,000 - - - - - - - - - - -	Shares 48,149,500 14,500,000 70,490,813 132,062,705 48,000,000 33,550,000 72,061 5,500,000 78,000,000 340,000 1,116,000 15,000,000 5,000,000	Percentage of ownership % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 55.00 % 70.00 % 100.00 % 65.00 % 100.00 % 40.00 % 100.00 % 100.00	Unit price 15 24 100 3 37 14 2,741 2 10 17 60 3 10
	48,149,500 21,000,000 70,490,813 132,062,705 48,000,000 10,930,838 72,061 2,000,000 16,000,000 340,000 - 10,000,000 -

Note: Addition: Total Tech Nutrition Co., Ltd.: recognized an investment income of 139,580 thousand and a cumulative translation adjustment of 2,861 thousand. Huang-Ho Invest. Co., Ltd.: recognized an unrealized gain on financial instrument of 52,847 thosuand, an investment income of 11,914 thousand, and a capital surplus from treasury share transactions of 43,283 thousand. Great Wall International (Holdings) Ltd.: recognized a change in equity of subsidiaries of 30,917 thousand, a cumulative translation adjustment of 104,321 thousand, and an investment income of 507,311 thousand under the equity method. City Chain Food Ltd.: recognized a capital surplus from treasury share transactions of 56,514 thousand. Mei Lan Lei Co., Ltd.: recognized an investment income of 678,811. KouChan Mill Co., Ltd.: acquired non-controlling interest of 5,893,412 shares and 76,614 thousand, a capital increase of 16,725,750 shares and 217,435 thousand, and recognized an investment income of 30,251 thousand. Oriental Best Foods Co., Ltd.: recognized an investment income of 18,282 thousand. An Hsin Chiao Chu Co., Ltd.: obtained a capital increase of 3,500,000 shares and 35,000 thousand. Zhong Yi Food Co., Ltd.: obtained a capital increase of 62,000,000 shares and 620,000 thousand, recognized a capital surplus of 37,539 thousand due to the difference between the actual price and carrying amount, and recognized an investment profit of 36,751 thousand. Great Wall FeedTech Enterprise Co., Ltd.: recognized an investment profit of 744 thousand. Wonder Biotek Co., Ltd.: obtained a capital increase of 5,000,000 shares and 50,000 thousand. Neo Foods Co., Ltd.: obtained a capital increase of 5,000,000 shares and 50,000 thousand. San Inn Abattoir Co.: obtained a capital increase of 1,116,000 shares and 66,469 thousand.
Note: Decrease: Total Nutrition Tech. Co., Ltd.: distributed cash dividends of 18,097 thousand. Huang-Ho Invest. Co., Ltd.: distributed cash dividends of 285,635 thousand, had a capital reduction of 6,500,000 shares and 65,000 thousand. City Chain Food Ltd.: recognized a loss on remeasurements of of 203 thousand, recognized a cumulative translation adjustment of 9,411 thousand, and an investment loss of 99,851 thousand. KouChan Mill Co., Ltd.: distributed cash dividends of 30,995 thousand. Oriental Best Foods Co., Ltd.: distributed cash dividends of 8,835 thousand. An Hsin Chiao Chu Co., Ltd.: recognized an investment loss of 5,716 thousand. Wonder Biotek Co., Ltd.: recognized an investment loss of 44,540 thousand. Neo Foods Co., Ltd.: recognized an investment loss of 1,298 thousand.

Great Wall Enterprise Co., Ltd.

Statement of changes in property, plant and

equipment

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item	Beginning balance $ 3,475,066 2,771,757 3,015,858 196,202 1,945,310 729,335 $ 12,133,528	Addition 368,875 618,620 82,862 44,717 235,045 783,939 2,134,058	Decrease 145,841 187,780 531,646 34,931 266,252 923,109 2,089,559	Ending balance 3,698,100 3,202,597 2,567,074 205,988 1,914,103 590,165 12,178,027	Collateral Note None " " " " "
Land Buildings and Construction Machinery and Equipment Transportation equipment Other facilities Construction in progress

Note: Additions for this period include a purchasing amount of 1,121,359 thousand, an increase of 55,675 thousand and 73,294 thousand from transfes from investment properties to land and buildings and construction, respectively, and an increase of 883,730 thousand from transfers from construction in progress.

Note: Disposals for this period totaled 1,205,829 thousand, transfers to land amounted to 25,280 thousand, transfers to buildings amounted to 545,326 thousand, transfers to machinery and equipment amounted to 82,862 thousand, transfers to transportation equipment amounted to 5,385 thousand, and transfers to other facilities amounted to 224,877 thousand.

Great Wall Enterprise Co., Ltd.

Statement of changes in accumulated depreciation of property, plant and equipment

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item	Beginning balance $ 1,232,674 2,146,785 123,518 1,278,334 1,500 $ 4,782,811	Addition 148,526 116,771 25,615 160,352 - 451,264	Decrease 53,970 243,264 24,755 150,027 - 472,016	Ending balance Note 1,327,230 2,020,292 124,378 1,288,659 1,500 4,762,059
Buildings and Construction Machinery and Equipment Transportation equipment Other facilities Accumulated impairment

Note: Additions for this period include 406,190 thousand of deprecation recognized, 45,074 thousand from transfers from investment properties to buildings and construction. Decreases for this period include 472,016 thousand from disposals.

Great Wall Enterprise Co., Ltd.

Statement of changes in investment property

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item	Beginning balance $ 331,043 446,662 $ 777,705	Addition - - -	Decrease 55,675 73,294 128,969	Ending balance Note 275,368 373,368 648,736
Land and improvements Buildings and construction

Note: Decreases for this period include transfers to property, plant, and equipment of 128,969 thousand.

Statement of changes in accumulated depreciation of investment property

Item	Beginning balance $ 263,151 36,000 $ 299,151	Addition 9,193 - 9,193	Decrease 45,074 - 45,074	Ending balance Note 227,270 36,000 263,270
Buildings and construction Accumulated impairment

Note: Increases for this period include 9,913 thousand of depreciation recognized. Decreases for this period include transfers to property, plant, and equipment of 45,074 thousand.

Great Wall Enterprise Co., Ltd.

Statement of biological assets - non-current For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Amount

Item	Description	Fair value Costs to sell Cost Accumulated depreciation Accumulated impairment $ - - 261,214 (86,470) - - - 22,137 (9,714) - $ - - 283,351 (96,184) - Statement of deferred tax assets Description Amount $ 20,481 12,112 7,500 13,286 $ 53,379	Fair value Costs to sell Cost Accumulated depreciation Accumulated impairment $ - - 261,214 (86,470) - - - 22,137 (9,714) - $ - - 283,351 (96,184) - Statement of deferred tax assets Description Amount $ 20,481 12,112 7,500 13,286 $ 53,379	Carrying amount Note 174,744 12,423 187,167 Note

100

Great Wall Enterprise Co., Ltd.

Statement of other non-current assets

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item Prepayments for land construction and business facilities Guarantee deposits paid Unamortized expenses Prepayment for processing fee Other intangible assets	Description	Amount Notes $ 214,896 55,371 6,199 30,000 600 $ 307,066
	Software, plastic baskets, and packaging fees

101

Great Wall Enterprise Co., Ltd.

Statement of short-term borrowings For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Type	Description Bank of China Bank of Taiwan: Wuchang Branch Taiwan Cooperative Bank: Ziqiang Branch Hua Nan Commercial Bank: Tainan Branch Mega Bank: Tainan Branch Chinatrust Commercial Bank E.Sun Commercial Bank: Tainan Branch Taiwan Business Bank: Chenggong Branch ANZ Bank Taipei Fubon Bank Mizuho Bank Mizuho Bank ING Bank E.Sun Commercial Bank: Tainan Branch Mizuho Bank ING Bank Bangkok Bank	Ending balance $ 191,314 47,610 688,610 47,027 57,584 201,487 9,469 102,696 673,004 54,350 682,704 24,575 798,976 300,000 259,000 100,000 400,000 $ 4,638,406	Contract period 2021.2.10-2021.5.19 2021.9.22 2021.1.22-2021.6.20 2021.3.8 2021.5.12-2021.6.18 2021.6.25 2021.3.23-2021.6.25 2021.2.11-2021.6.15 2021.1.4-2021.1.11 2021.4.4 2021.3.11-2021.5.27 2021.6.25 2021.1.4-2021.6.9 2021.3.23 2021.12.31 2021.1.4 2021.3.20	Range of interest rate 0.63%-0.84% 0.578%- 0.8034% 0.68%-0.86% 0.8843% 1% 0.863245% 0.87%-1% 0.476%-0.847% 1% 0.84% 0.9% 0.9% 0.96%-0.97% 0.84% floating 0.85% 0.84%	Loan commitment USD 35,000 USD 10,000 USD 42,000 NTD 800,000 USD 23,000 NTD 300,000 USD 19,500 USD 10,000 USD 42,000 USD 20,000 USD 60,000 USD 60,000 USD 35,000 USD 19,500 USD 60,000 USD 35,000 USD 30,000	Collateral Note Credit guarantee " " " " " " " " " " " " None " " "
Letters of credit " " " " " " " " " " " " Unsecured bank loans " " "

102

Great Wall Enterprise Co., Ltd.

Statement of short-term notes and bills payable

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item Commercial paper payable Commercial paper payable Commercial paper payable Commercial paper payable Commercial paper payable Commercial paper payable Commercial paper payable Commercial paper payable	Guarantee or acceptance institution	Contract period 2021/1/20 2021/1/4 2021/1/27 2021/1/12 2021/2/2 2021/1/12 2021/1/15 2021/1/12	Range of interest rate 0.848% 0.858% 0.848% 0.84% 0.888% 0.848% 0.831% 0.898%		Amount	Carrying amount Note 100,000 200,000 200,000 200,000 300,000 300,000 100,000 300,000 1,700,000
				Total amount $ 100,000 200,000 200,000 200,000 300,000 300,000 100,000 300,000 $ 1,700,000	Unamorti zed discount - - - - - - - - -
	China Bills China Bills Mega Bills Dah Chung Bills Taiwan Finance Co. Taiwan Cooperative Bills Dah Chung Bills Ta Ching Bills

103

Great Wall Enterprise Co., Ltd.

Statement of financial liabilities at fair value

through profit or loss - current

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

==> picture [497 x 341] intentionally omitted <==

----- Start of picture text -----

Fair value changes
Shares Cost of Fair value attributable
Name of financial Interest Unit to the changes in
instrument Description or units Par value Total amount rate acquisition price Total amount credit risk Note
Forward exchange Forward - $ - 22,189 - % - - 22,189 -
contracts exchange
contracts
Option contracts Corn - - 1,010 - % - - 1,010 -
options
$ 23,199 23,199 -
Statement of notes payable
Vendor name Description Amount Note
Mei Lan Lei Co., Ltd. $ 24,418 Related-party
Other: subsidiary 5,584 Amount per account <5%
Other: non-related-party 367 Amount per account <5%
$ 30,369
----- End of picture text -----

104

Great Wall Enterprise Co., Ltd.

Statement of trade payables

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Vendor name Mei Lan Lei Co., Ltd. Other: non-related-party Other: subsidiary Other: other related-party	Description	Amount Note $ 204,028 Related-party 1,187,309 Amount per account <5% 86,791 〃 5,417 〃 $ 1,483,545

Statement of other payables

Item	Description		Amount
Wages and salaries	Salary, bonuses, paid holidays and overtime expense	$	418,934
Freight	Freight and gas expense		22,818
Insurance expense	Labor and health insurance expense		27,818
Energy expense	Electricity expense		13,734
Employee compensation			90,000
Directors’ remuneration			40,000
Revolving funds			14,197
Professional service fee	Lawyer and auditor expenses		1,800
Fuel expense			684
Meal expense			5,944
Advertisement expense	Advertisement and promotion expense		69,406
Interest expense	Short term borrowings for material purchases		6,169
Natural gas expense			1,037
Land value tax			3,373
Other			62,152
		$	778,066

105

Great Wall Enterprise Co., Ltd.

Statement of lease liabilities

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item	Description Land lease Swine farm lease Farm lease Native chicken farm lease Material warehouse lease Native chicken coop lease Luiying native chicken farm Refrigeration equipment and factory lease Meat dissection equipment lease Electrical slaughtering factory lease	Lease term 2013/7/1-2024/12/31 2015/4/1-2025/3/31 2014/1/1-2022/7/31 2017/4/1-2027/3/31 2017/1/1-2021/12/31 2016/7/1-2021/6/30 2019/1/1-2024/12/31 2019/12/1-2029/11/30 2019/12/1-2029/11/30 2016/1/1-2025/12/31	Discount rate	Ending balance Note $ 1,262 2,572 575 2,104 143 86 112,443 13,364 3,341 80,879 $ 216,769
Property, plant, and equipment Property, plant, and equipment Property, plant, and equipment Property, plant, and equipment Property, plant, and equipment Property, plant, and equipment Property, plant, and equipment Machinery and equipment Machinery and equipment Other			1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5%

106

Great Wall Enterprise Co., Ltd.

Statement of other current liabilities

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item Description Receipts under custody Transportation fee receipts under custody Other Subtotal Temporary credits Funds for foreign workers Temporary transaction fee receipts Other Subtotal Advance receipts Advance receipts for wares Business tax received Sales tax payable Other payables: related-party Payables to related-parties Current account with others	Description	Amount Note $ 19,320 15,386 34,706 818 7,912 5,949 14,679 86,248 3,105 5,008 195,000 $ 338,746

Statement of provisions - current

Item Description Amount Note Guarantee deposits received $ 75,790

107

Great Wall Enterprise Co., Ltd.

Statement of other non-current liabilities For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item	Description	Amount	Note
Deferred credit	$	122,195
	Statement of deferred tax	liabilities

Item Provision for the Land Value Increment Tax Defined benefit plans Unrealized exchange gains and losses Fair value gains	Description	Amount Note $ 20,754 21,135 15,966 11,348 $ 69,203

108

Great Wall Enterprise Co., Ltd.

Statement of operating revenue

For the year ended December 31, 2020 (Expressed in thousands of New Taiwan Dollars)

Item Sale Products: Layer feeds Broiler feeds Swine feeds Contract swine Chicken meat Eggs Others Subtotal Corn Soybean meal (including soybeans) Others Subtotal Total operating revenue Sales returns Sales discounts Net operating profit	Quantity 337,852,168 199,409,601 128,947,526 40,479,109 150,755,545 52,595,701 197,737,429 184,813,837 139,591,934 26,619,316	Amount Note $ 3,767,310 3,112,230 1,817,502 2,729,919 9,376,449 516,770 2,723,640 24,043,820 1,250,118 1,828,033 1,045,526 4,123,677 28,167,497 (55,544) (938,615) $ 27,173,338

109

Great Wall Enterprise Co., Ltd.

Statement of operating costs

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item
Inventory balance at 1 January
Purchases of raw materials
Deduct: Raw materials transferred to cost of sales
Raw materials transferred to outsourced processing
Raw materials transferred to manufacturing expense
Raw materials transferred to operating expense
Variation from standard cost
Balance at December 31
Inventory balance at 1 January
Purchases
Deduct: Materials transferred to manufacturing expense
Materials transferred to other expense
Inventory balance at 31 December
Direct labor
Manufacturing expense
Add: Work-in-progress balance at 1 January
Deduct: Work-in-progress balance at 31 December
Add: Finished goods balance at 1 January
Biological assets: current
Biological assets: non-current
Farm products
Deduct: Finished goods balance at 31 December
Biological assets: current
Biological assets: non-current
Farm products
Transfers to operating expense
Transfers to manufacturing expense
Add: Transfers from outsourced finished goods
(including processing cost)
Wages for farmers
Variation from standard cost
Finished goods purchased
Issuance of outsourced finished products
Add: Raw materials transferred to cost of sale
Less: Sale of rejectable waste
Total operating costs

Amount
Subtotal
Total
$ 740,938
16,571,464
(1,923,022)
(372,057)
(147,393)
(480)
(76,730)
(440,185)
5,132
108,672
(105,485)
(8)
(8,673)
643,422
1,870,154
3,182
(3,075)
209,619
802,308
200,431
175,982
(264,834)
(934,797)
(187,167)
(43,129)
(8)
(6,256)
467,493
1,830,526
(1,962,275)
4,196,360
(71,373)
1,923,023
(80,018)
$
23,121,741

110

Great Wall Enterprise Co., Ltd.

Statement of selling expenses

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item Wages and salaries Rent expense Stationery and supplies Travelling expense Freight Expected credit impairment loss on credit Postage expense Repairs and maintenance expense Advertisement expense Utilities expense Insurance expense Entertainment expense Donation expense Taxes Depreciations Meal expense Employee benefits Material expense Commission expense Training expense R&D expenses Sundry purchases Stock affairs service Pension Books and magazines Professional service fee Miscellaneous expense Feed inspection expense	Description	Amount Note $ 931,613 14,646 4,137 33,428 526,353 24,290 10,916 25,690 121,557 18,477 86,734 12,000 1,874 11,200 66,813 28,725 16,303 708 2,389 2,660 7,011 4,833 6,132 34,433 542 22,509 80,864 4,043 $ 2,100,880

111

Great Wall Enterprise Co., Ltd.

Statement of finance costs

For the year ended December 31, 2020

(Expressed in thousands of New Taiwan Dollars)

Item Interest expense: borrowings Interest expense: lease liabilities	Description	Amount Note $ 74,778 3,363 $ 78,141

Statement of the net amount of other revenues and

gains and expenses and losses

Item Other income (expenses)	Description	Amount Note $ (64,220) 27,535 38,531 83,267 252,442 81,562 $ 419,117
	Gains (losses) on financial assets (liabilities) at fair value through profit or loss Gains (losses) on disposals of property, plant and equipment Rent income Dividends income Foreign exchange gains (losses) Other

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GREATWALL — Annual Report 2020

51744_rns_2020-11-13_03f4b16f-a1fa-46de-8a66-b9c79254b5ac.pdf

GREAT WALL ENTERPRISE CO., LTD.

Financial Statements

Table of contents

KPMG

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

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

Auditors’ Responsibilities for the Audit of the Financial Statements

Notes to Readers

(English Translation of Financial Statements and Report Originally Issued in Chinese) GREAT WALL ENTERPRISE CO., LTD.

Balance Sheets

December 31, 2020 and 2019

(English Translation of Financial Statements Originally Issued in Chinese) GREAT WALL ENTERPRISE CO., LTD.

Statements of Comprehensive Income

For the years ended December 31, 2020 and 2019

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

(English Translation of Financial Statements Originally Issued in Chinese) GREAT WALL ENTERPRISE CO., LTD.

Statements of Changes in Equity

For the years ended December 31, 2020 and 2019

(English Translation of Financial Statements and Report Originally Issued in Chinese) GREAT WALL ENTERPRISE CO., LTD.

Statements of Cash Flows

For the years ended December 31, 2020 and 2019

(Expressed in Thousands of New Taiwan Dollars)

(English Translation of Financial Statements Originally Issued in Chinese) GREAT WALL ENTERPRISE CO., LTD.

Notes to the Financial Statements

For the years ended December 31, 2020 and 2019

(1) Company history

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

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

(3) New standards, amendments and interpretations adopted:

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(4) Summary of significant accounting policies:

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(ii) Functional and presentation currency

(ii) Foreign operations

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(f) Financial instruments

(i) Financial assets

1) Financial assets measured at amortized cost

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

4) Business model assessment

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

． the disappearance of an active market for a security because of financial difficulties.

7) Derecognition of financial assets

(ii) Financial liabilities and equity instruments

1) Classification of debt or equity

2) Equity instrument

3) Treasury shares

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

4) Financial liabilities

5) Derecognition of financial liabilities

6) Offsetting of financial assets and liabilities

(g) Inventories

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(h) Biological assets

(i) Investments in subsidiaries

(j) Investment property

(k) Property, plant and equipment

(i) Recognition and measurement

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(ii) Reclassification to investment properties

(iv) Depreciation

(l) Leases

(i) Identifying a lease

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(ii) As a lessee

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(iii) As a lessor

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

(m) Impairment of non-financial assets

(n) Revenue recognition

GREAT WALL ENTERPRISE CO., LTD. Notes to the Financial Statements

GREATWALL Annual Report 2020