GREATWALL - Annual Report 2021 | FinancialReports.eu

Stock Code:1210

GREAT WALL ENTERPRISE CO., LTD. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Report For the Years Ended December 31, 2021 and 2020

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

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

Contents 1. Cover Page 2. Table of Contents 3. Representation Letter 4. Independent Auditors’ Report 5. Consolidated Balance Sheets 6. Consolidated Statements of Comprehensive Income 7. Consolidated Statements of Changes in Equity 8. Consolidated Statements of Cash Flows 9. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Significant Commitments and contingencies (10) Losses Due to Major Disasters (11) Subsequent Events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in mainland China (d) Major shareholders (14) Segment information	Page
	1 2 3 4 5 6 7 8 9～10 10 10～11 11～37 37～38 38～92 92～96 96 96～97 97 97 97 98～104 104～105 105～107 108 109～111

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

Page

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Representation Letter

The entities that are required to be included in the combined financial statements of Great Wall Enterprise Co., Ltd. as of and for the year ended December 31, 2021 under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports, and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with International Financial Reporting Standards No. 10 by the Financial Supervisory Commission, "Consolidated Financial Statements." In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, Great Wall Enterprise Co., Ltd. and Subsidiaries do not prepare a separate set of combined financial statements.

Company name: Great Wall Enterprise Co., Ltd. Chairman: Han Chia-Yau Date: March 25, 2022

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KPMG

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

Independent Auditors’ Report

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

Opinion

We have audited the consolidated financial statements of Great Wall Enterprise Co., Ltd. and its subsidiaries (“ the Group” ), which comprise the consolidated balance sheets as of December 31, 2021 and 2020, the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended and notes to the consolidated financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of December 31, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and with the International Financial Reporting Standards (“IFRSs”), International Accounting Standards (“IASs”), Interpretations developed by the International Financial Reporting Interpretations Committee (“IFRIC”) or the former Standing Interpretations Committee (“SIC”) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

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 Consolidated Financial Statements section of our report. We are independent of the Group 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 consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

Revenue recognition

Please refer to Note 4(p) and Note 6(aa) “ 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:

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.

4-1

Our principal audit procedures include:

Understanding whether the accounting policies implemented by the audited company is appropriate
Testing the Company’ s controls and transaction cycle from order to payment regarding revenue recognition
Performing detailed tests on the verification of sales revenue, and sampling payments or original certificates after the verification period
Selecting the appropriate sample size in accounts receivable and sending external confirmations
Appraising whether sales revenues occur during appropriate periods
Investment impairment using the equity method

Please refer to Note 4(o) Impairment of Non-financial Assets in the financial report for the accounting policy for investment impairment using the equity method. For the accounting judgments regarding investment impairment assessment using the equity method, please refer to Note 5 in the report. For more information on asset impairment, please refer to Note 6(l) Property, plant, and equipment and Note 6(m) Right-of-use assets.

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 fixed 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 fixed 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 deviations.

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 are deviations from the management authority.

4-2

Other Matter

Great Wall Enterprise Co., Ltd. has additionally prepared its parent-company-only financial statements as of and for the years ended December 31, 2021 and 2020, on which we have issued an unmodified opinion.

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

Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with 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 consolidated financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, management is responsible for assessing the Group’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 Group or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing the Group’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an 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 consolidated financial statements.

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

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’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 Group’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 consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or conditions may cause the Group to cease to continue as a going concern.

4-3

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group 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 consolidated 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 Phoebe Chung and Melody Chen.

KPMG

Taipei, Taiwan (Republic of China) March 25, 2022

Notes to Readers

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

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

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

Consolidated Balance Sheets

December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Assets 1100 Cash and cash equivalents (Notes 4 and 6(a)) 1110 Current financial assets at fair value through profit or loss (Note 6(b)) 1150 Notes receivable, net (Notes 4, 6(d), and 7) 1170 Accounts receivable, net (Notes 6(d), and 7) 130x Inventories (Notes 4 and 6(e)) 1400 Current biological assets, net (Notes 4 and 6(f)) 1410 Prepayments (Note 6(g)) 1476 Other current financial assets (Note 6(h)) 1479 Other current assets, others 15xx Non-current assets: 1517 Non-current financial assets at fair value through other comprehensive income (Notes 4 and 6(c)) 1550 Investments accounted for using equity method, net (Notes 4 and 6(j)) 1600 Property, plant and equipment (Notes 4 and 6(l)) 1755 Right-of-use assets (Notes 4 and 6(m)) 1760 Investment property, net (Notes 4 and 6(n)) 1805 Goodwill 1830 Non-current biological assets (Notes 4 and 6(f)) 1840 Deferred income tax assets (Notes 4 and 6(w)) 1990 Other non-current assets, others (Notes 6(o) and 8) Total assets	December 31, 2021 Amount % $ 6,083,001 11 7,705 - 1,582,488 3 5,952,083 10 8,176,015 14 1,803,467 3 1,450,708 3 303,641 1 1,236,656 2 26,595,764 47 2,933,887 5 1,741,218 3 20,290,137 36 1,993,146 4 692,850 1 158,024 - 614,240 1 193,452 - 1,519,412 3 30,136,366 53 $ 56,732,130 100	December 31, 2020 Amount % 4,488,486 9 21,880 - 1,107,562 2 5,225,980 10 8,148,332 17 1,720,785 3 918,389 2 802,247 2 1,083,677 2 23,517,338 47 2,648,091 5 1,745,344 3 19,119,064 37 2,153,458 4 740,322 1 160,023 - 263,166 1 196,094 - 1,150,136 2 28,175,698 53 51,693,036 100 Liabilities and Equity 21xx Current liabilities: 2100 Short-term borrowings (Note 6(p)) 2110 Short-term notes and bills payable (Note 6(q)) 2120 Current financial liabilities at fair value through profit or loss (Notes 4 and 6(b)) 2150 Notes payable (Note 7) 2170 Accounts payable (Note 7) 2200 Other payables (Notes 7 and 6(s)) 2230 Current income tax liabilities (Note 4) 2280 Lease liabilities (Notes 4 and 6(t)) 2320 Long-term liabilities, current portion (Notes 4 and 6(r)) 2399 Other current liabilities, others (Note 7) 25xx Non-Current liabilities: 2540 Long-term borrowings (Note 6(r)) 2551 Non-current provisions for employee benefits (Notes 4 and 6(v)) 2570 Deferred income tax liabilities (Note 4) 2580 Lease liabilities non-current (Notes 4 and 6(t)) 2645 Guarantee deposits received 2670 Other non-current liabilities, others 2xxx Total liabilities Equity attributable to owners of parent (Notes 4 and 6(x)): 3100 Capital stock 3200 Capital surplus 3300 Retained earnings 3400 Other equity interest 3500 Treasury shares Total equity attributable to owners of parent: 36xx Non-controlling interests (Notes 4 and 6(i)) 3xxx Total equity 2-3xxx Total liabilities and equity	December 31, 2021		December 31, 2020
			Amount %		Amount %
			$ 13,183,124 23 2,914,931 5 27,315 - 695,453 1 5,246,498 9 2,364,368 4 318,261 1 191,053 - 185,336 - 1,451,890 3 26,578,229 46 1,153,218 2 4,930 - 85,486 - 929,787 2 90,603 - 150,268 - 2,414,292 4 28,992,521 50 8,521,593 15 3,294,766 6 6,952,880 12 1,551,646 3 (219,132) - 20,101,753 36 7,637,856 14 27,739,609 50 $ 56,732,130 100		8,931,406 17 1,986,931 5 23,830 - 219,123 - 4,516,214 9 2,207,835 4 465,603 1 221,658 - 972,264 2 1,602,489 3 21,147,353 41 1,255,263 2 7,134 - 111,723 - 1,050,393 2 83,332 - 151,086 - 2,658,931 4 23,806,284 45 8,273,391 17 3,179,626 6 7,562,982 14 1,384,211 3 (219,132) - 20,181,078 40 7,705,674 15 27,886,752 55 51,693,036 100

See accompanying notes to consolidated financial statements.

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

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2021 and 2020

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

4000 Operating revenue (Notes 4, 6(aa), and 7) 5000 Operating costs (Notes 4, 6(e), and 7) 5900 Gross profit (loss) from operations 6000 Operating expenses: 6100 Selling expenses 6200 Administrative expenses 6300 Research and development expenses 6450 Expected credit loss (gain) (Notes 4 and 6(d)) Total operating expenses 6900 Net operating income (loss) 7000 Non-operating income and expenses: (Notes 6(ab) and 7) 7100 Interest income 7020 Other gains and losses, net 7050 Finance costs 7060 Share of profit (loss) of associates and joint ventures accounted for using equity method, net Total non-operating income and expenses 7900 Profit (loss) from continuing operations before tax 7950 Less: Income tax expenses ((Notes 4 and 6(w)) Profit (loss) 8300 Other comprehensive income: 8310 Components of other comprehensive income that will not be 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 Components of other comprehensive income that will not be reclassified to profit or loss 8360 Components of other comprehensive income (loss) that will be 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 Components of other comprehensive income that will be reclassified to profit or loss 8300 Other comprehensive income Total comprehensive income Profit (loss), attributable to: Profit (loss), attributable to owners of parent Profit (loss), attributable to non-controlling interests Comprehensive income attributable to: Comprehensive income, attributable to owners of parent Comprehensive income, attributable to non-controlling interests Basic earnings per share (Note 6(z)) Basic earnings per share(Unit: NTD) Diluted earnings per share(Unit: NTD)	2021 Amount % $101,437,842 100 90,701,292 89 10,736,550 11 5,648,032 7 2,356,485 2 138,290 - 248,351 - 8,391,158 9 2,345,392 2 86,153 - 733,610 1 (284,623) - 6,186 - 541,326 1 2,886,718 3 624,695 1 2,262,023 2 3,164 - 285,999 - 633 - 288,530 - (204,872) - - - (204,872) - 83,658 - $ 2,345,681 2 $ 1,869,385 2 392,638 - $ 2,262,023 2 $ 2,039,351 2 306,330 - $ 2,345,681 2 $ 2.32 $ 2.32	2020
		Amount % 81,650,892 100 69,388,663 85 12,262,229 15 5,460,747 7 2,388,505 3 169,130 - 31,899 - 8,050,281 10 4,211,948 5 16,558 - 1,018,574 1 (279,627) - 16,035 - 771,540 1 4,983,488 6 911,142 1 4,072,346 5 2,160 - 384,312 - 473 - 385,999 - 243,593 - - - 243,593 - 629,592 - 4,701,938 5 3,122,071 4 950,275 1 4,072,346 5 3,605,841 4 1,096,097 1 4,701,938 5 3.88
		3.87

See accompanying notes to consolidated financial statements.

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

Consolidated Statements of Changes in Equity

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

				Equity attrib	utable to owners	of parent					Non- controlling interests	Total equity
Share capital	Capital surplus		Retained	earnings		Total	other equity int	erest	Treasury shares	Total equity attributable to owners of parent
						Exchange differences on translation of foreign financial statements	Unrealized gains (losses) on 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
$ 8,273,391 - - - - - - - - - 8,273,391 - - - - - 248,202 - - - $ 8,521,593	3,011,373 - - - - - 37,539 30,917 - 99,797 3,179,626 - - - - - - (7,339) - 122,479 3,294,766	2,254,643 - - - 229,418 - - - - - 2,484,061 - - - 312,376 - - - - - 2,796,437	42,994 - - - - - - - - - 42,994 - - - - - - - - - 42,994	3,961,733 3,122,071 1,687 3,123,758 (229,418) (1,820,146) - - - - 5,035,927 1,869,385 2,531 1,871,916 (312,376) (2,233,816) (248,202) - - - 4,113,449	6,259,370	(899,515) - 97,771 97,771 - - - - - - (801,744) - (118,564) (118,564) - - - - - - (920,308)	1,801,643 - 384,312 384,312 - - - - - - 2,185,955 - 285,999 285,999 - - - - - - 2,471,954	902,128 - 482,083 482,083 - - - - - - 1,384,211 - 167,435 167,435 - - - - - - 1,551,646	(219,132) - - - - - - - - - (219,132) - - - - - - - - - (219,132)	18,227,130 3,122,071 483,770 3,605,841 - (1,820,146) 37,539 30,917 - 99,797 20,181,078 1,869,385 169,966 2,039,351 - (2,233,816) - (7,339) - 122,479 20,101,753	6,097,389 950,275 145,822 1,096,097 - - (37,539) - 549,727 - 7,705,674 392,638 (86,308) 306,330 - - - - (374,148) - 7,637,856	24,324,519
					3,122,071 1,687							4,072,346 629,592
					3,123,758							4,701,938
					- (1,820,146) - - - -							- (1,820,146) - 30,917 549,727 99,797
					7,562,982 1,869,385 2,531							27,886,752 2,262,023 83,658
					1,871,916							2,345,681
					- (2,233,816) (248,202) - - -							- (2,233,816) - (7,339) (374,148) 122,479
					6,952,880							27,739,609

See accompanying notes to consolidated financial statements.

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

Consolidated Statements of Cash Flows

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Cash flows from (used in) operating activities: Profit before tax Adjustments: Adjustments to reconcile profit (loss): Depreciation expense Amortization expense Expected credit loss (gain) / Provision (reversal of provision) for bad debt expense 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 associates and joint ventures accounted for using equity method Loss (gain) on disposal of property, plant and equipment Loss (gain) on disposal of investments accounted for using equity method Impairment loss on property, plant and equipment Gain on reversal for allowance for inventory write-down and bad debts Loss on disposal of inventory Changes in fair value of biological assets Total adjustments to reconcile profit Changes in operating assets and liabilities: Decrease in financial assets or liabilities at fair value through profit or loss Increase in notes receivable (Increase) decrease in accounts receivable (Increase) decrease in inventories Increase in biological assets Increase in prepayments (Increase) decrease in other current assets Decrease (increase) in other financial assets Increase in notes payable Increase (decrease) in accounts payable Increase in other payable (Decrease) increase in other current liabilities Increase in net defined benefit liability Total changes in operating assets and liabilities Total adjustments Cash inflow generated from operations Interest received Income taxes paid Net cash flows from operating activities Cash flows from (used in) investing activities: Acquisition of financial assets at fair value through other comprehensive income Proceeds from disposal of financial assets at fair value through other comprehensive income Increase in prepayments for investments Net cash flow from acquisition of subsidiaries Acquisition of property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease in other non-current assets Dividends received Net cash flows used in investing activities	2021 $ 2,886,718 1,886,549 46,465 248,351 17,660 284,623 (86,153) (111,467) (6,186) (55,694) - 167,538 383 (12,521) (37,485) 2,342,063 - (474,926) (974,454) (15,545) (349,023) (532,319) (152,979) 498,606 476,330 730,284 145,070 (151,007) 329 (799,634) 1,542,429 4,429,147 86,153 (233,632) 4,281,668 - - - - (3,177,620) 175,308 (415,741) 111,467 (3,306,586)	2020 4,983,488 1,846,637 44,790 31,899 (67,455) 279,627 (16,558) (96,564) (16,035) (27,561) 4,463 36,990 17,163 13,356 18,352 2,069,104 5,164 (80,181) 131,780 20,582 (254,493) (89,743) 461,950 (173,831) 15,010 (93,610) 205,525 113,710 1,341 263,204 2,332,308 7,315,796 16,558 (863,455) 6,468,899 (66,469) 2,190 506 65,171 (3,419,927) 213,642 (14,892) 94,374 (3,125,405)

See accompanying notes to consolidated financial statements.

8-1

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

Consolidated Statements of Cash Flows

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Cash flows used in financing activities:
Increase in short-term loans
Decrease in short-term loans
Increase in short-term notes and bills payable
Decrease in short-term notes and bills payable
Proceeds from long-term debt
Repayments of long-term debt
Decrease in guarantee deposits received
Payment of lease liabilities
Decrease in other non-current liabilities
Cash dividends paid
Acquisition of ownership interests in subsidiaries
Interest paid
Change in non-controlling interests
Net cash flows from (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

See accompanying notes to consolidated financial statements.

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

Notes to the Consolidated Financial Statements

For the years ended December 31, 2021 and 2020

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

(1) Company history

GREAT WALL ENTERPRISE CO., LTD. (hereinafter referred to as the “Company") was established with the approval of the Ministry of Economic Affairs on December 28, 1960. Its registered address is No. 3, Song 2nd Street, Yongkang District, Tainan City. The consolidated financial reports of the company as of December 31, 2021 include the company and its subsidiaries (hereinafter also referred to as the "Group"). The main business areas of the Group are as follows:

(a) Procurement, transportation, sale, oil production, and oil processing of vegetable oil seeds and dried coconut 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 pulp 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) Poultry livestock services.

(Continued)

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

(q) Miscellaneous food manufacturing. (Liquid egg, egg powder, premium egg, braised egg, iron egg, tea egg, salted fish, brocade, egg skin, steamed egg, egg bag, egg tofu, egg tendon).
(r) Manufacturing of chemical fertilizers.
(s) Leisure farms.
(t) Restaurants.
(u) In addition to the permitted businesses, the Group may operate in businesses that are not prohibited or restricted by laws and regulations.

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

These consolidated financial statements were authorized for issue by the Board of Directors on March 25, 2022.

(3) New standards, amendments and interpretations adopted:

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

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

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

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

●Amendments to IFRS 16 “Covid-19-Related Rent Concessions beyond June 30, 2021”
(b) The impact of IFRS issued by the FSC but not yet effective

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

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

(Continued)

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

The Group 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 consolidated financial statements:

●Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets Between an Investor and Its Associate or Joint Venture”
●IFRS 17 “ Insurance Contracts” and amendments to IFRS 17 “ Insurance Contracts”
●Amendments to IAS 1 “Classification of Liabilities as Current or Non-current”
●Amendments to IAS 1 “Disclosure of Accounting Policies”
●Amendments to IAS 8 “Definition of Accounting Estimates”
●Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

(4) Summary of significant accounting policies:

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as “the Regulations” ) and the International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations endorsed and issued into effect by the Financial Supervisory Commission, R.O.C..

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

Except for the following significant accounts, the consolidated 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(q).
(ii) Functional and presentation currency

The functional currency of each Group entity is determined based on the primary economic environment in which the entity operates. The consolidated 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.

(Continued)

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

(c) Basis of consolidation
(i) Principles of preparation of the consolidated financial statements

The consolidated financial statements comprise the Company and subsidiaries. Subsidiaries are entities controlled by the Group. The Group ‘controls’ an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. Intragroup balances and transactions, and any unrealized income and expenses arising from Intragroup transactions are eliminated in preparing the consolidated financial statements. The Group attributes the profit or loss and each component of other comprehensive income to the owners of the parent and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance.

The Group prepares consolidated financial statements using uniform accounting policies for like transactions and other events in similar circumstances.

Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the noncontrolling interests are adjusted and the fair value of the consideration paid or received will be recognized directly in equity, and the Group will attribute it to the owners of the parent.

(ii) Changes in the Group’s ownership interest in a subsidiary that do not result in a loss of control are accounted for as equity transactions. Any difference between the amount by which the noncontrolling interests are adjusted and the fair value of the consideration paid or received will be recognized directly in equity, and the Group will attribute it to the owners of the parent.
1) List of subsidiaries in the consolidated financial statements include:

Name of investor Great Wall Enterprise Co., Ltd. Great Wall Enterprise Co., Ltd. Great Wall Enterprise Co., Ltd. Great Wall Enterprise Co., Ltd. Great Wall Enterprise Co., Ltd. Great Wall Enterprise Co., Ltd. Great Wall Enterprise Co., Ltd. Great Wall Enterprise Co., Ltd.	Name of subsidiary Total Nutrition Tech. Co., Ltd. Huang-Ho Invest. Co., Ltd. Great Wall International (Holdings) Ltd. City Chain Food Ltd. KouChan Mill Co., Ltd. Mei Lan Lei Co., Ltd. An Hsin Chiao Chu Co., Ltd. Oriental Best Foods Co., Ltd.	Principal activity Feed production and sales, breeding stock imports and exports, and food distribution Investment Foreign investment holding Operation of western restaurants Flour production and sales Processing and sales of feed, concentrated feed, and chicken Sale of fresh meat Operation of western restaurants and food distribution	Shareholding December 31, 2021 Decembe r 31, 2020 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 55.00 % 55.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 90.00	Notes
			December 31, 2021 % 100.00 % 100.00 % 100.00 % 100.00 % 55.00 % 100.00 % 100.00 % 100.00

(Continued)

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

Name of investor Great Wall Enterprise Co., Ltd. Great Wall Enterprise Co., Ltd. Great Wall Enterprise Co., Ltd. Great Wall Enterprise Co., Ltd. City Chain Food Ltd. City Chain Food Ltd. City Chain Food Ltd. City Chain Food Ltd. City Chain Food Ltd. City Chain Food Ltd. City Chain Food Ltd. Route 66 Fast Food Ltd. Route 66 Fast Food Ltd. Route 66 Fast Food Ltd. Route 66 Fast Food Ltd. Route 66 Fast Food Ltd. Route 66 Fast Food Ltd. Route 66 Fast Food Ltd. Route 66 Fast Food Ltd. Full Loyal Int" Ltd and Shanghai Universal Chain Food Co., Ltd. Shanghai Universal Chain Food Co., Ltd. Saboten (China) Limited Beijing Universal Chain Food Co., Ltd. Route 66 Fast Food Ltd. and Beijing Universal Chain Food Co., Ltd. Beijing Duhsiaoyueh Restaurant Co.,Ltd Yung Huo (China) Co., Ltd Great Wall International (Holdings) Ltd.	Name of subsidiary Great Wall FeedTech Enterprise Co., Ltd. Zhong Yi Food Co., Ltd. Wonder Biotek Co., Ltd. Neo Foods Co., Ltd. Route 66 Fast Food Ltd. Nissshi Chain Co., Ltd. Saboten Co., Ltd. Saboten (China) Limited Honolulu Chain Food & Beverage Co., Ltd. Xiang Cheng Co., Ltd. Ma Cheng Co., Ltd. Beijing Universal Chain Food Co., Ltd. Yung Huo (China) Co., Ltd Tianjin Fast Food Limited ORIENT BEST GLOBAL FOODS Co., Ltd. Tai Ji Food Co., Ltd. Shanghai Universal Chain Food Co., Ltd. Beijing Dingfenggang Catering Co.,Ltd. Full Loyal Int' Ltd Saboten (Nanjing) Limited Shanghai All-Household Restaurant Management Co., Ltd. Saboten (Beijing) Limited Shanghai Xunshi Foods Co., Ltd. Beijing Duhsiaoyueh Restaurant Co.,Ltd Shanghai Duhsiaoyueh Restaurant Co.,Ltd. Great Wall Yung Huo Food (Beijing) Co., Ltd. Asia Nutrition Technologies Corporation	Principal activity Feed production, sales, and research Sale of egg products Production and research of animal medicine Food production and sales Investment Holding Bakeries Operation of Japanese restaurants Operation of Japanese restaurants Western and Chinese fast-food chain restaurants Operation of Chinese restaurants Operation of western restaurants Western and Chinese food and dining Investment Holding Operation of western restaurants and sale of food products Investment Holding Operation of western restaurants and sale of food products Processing, production, and sale of poultry, coffee, and fast-food products Western and Chinese fast-food chain restaurants Investment holding Mall operation Chinese and western fast food chains Operation of Japanese restaurants Western and Chinese dining services and management Operation of Chinese restaurants and sale of food products Operation of Chinese restaurants and sale of food products Processing, production, and sale of western and Chinese fast-food products, pastries, and juices Investment Holding	Shareholding December 31, 2021 Decembe r 31, 2020 % 100.00 % 100.00 % 65.00 % 65.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 67.29 % 67.29 % 50.00 % 50.00 % 50.00 % 50.00 % 55.00 % 55.00 % 50.00 % 50.00 % 90.00 % 90.00 % 100.00 % 100.00 % 79.03 % 79.03 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 55.00 % 55.00 % 100.00 % 100.00 % 100.00 % 100.00 % 50.00 % - % 50.00 % 50.00 % 100.00 % 100.00 % 70.00 % 70.00 % 70.00 % 70.00 % 79.03 % 79.03 % 100.00 % 100.00	Notes
			December 31, 2021 % 100.00 % 65.00 % 100.00 % 100.00 % 100.00 % 67.29 % 50.00 % 50.00 % 55.00 % 50.00 % 90.00 % 100.00 % 79.03 % 100.00 % 100.00 % 100.00 % 100.00 % 55.00 % 100.00 % 100.00 % 50.00 % 50.00 % 100.00 % 70.00 % 70.00 % 79.03 % 100.00

(Continued)

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

Name of investor Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd. Great Wall International (Holdings) Ltd., Route 66 Fast Food Ltd., and Great Wall Kuang-Ming Investment(BVI) Co., Ltd. Great Wall International (Holdings) Ltd. and Great Wall Northeast Asia Corporation Great Wall International (Holdings) Ltd. and Great Wall Northeast Asia Corporation Asia Nutrition Technologies Corporation	Name of subsidiary Waverley Star Ltd. Great Wall Food (HK) Co., Ltd. DaChan Showa Foods (Tianjin) Co., Ltd. Seafood Internation Co., Ltd. Tianjin Food Investment Co. Ltd. Global Food Corporation Clydebridge Ltd. GreatWall Food Investment Co., Ltd. Golden Harvest Inc. Fresh Aqua Corporation Great Wall FeedTech (Holdings) Ltd. Myint Dachan Co., Ltd Great Wall Grains International Limited Fresh Aqua Limited Global Seafood Limited Pacific Harvest Limited Seafood International Limited Universal Food Limited Foodchina Inc. Asia Nutrition Technologies (VN) Investment Co., Ltd. Marksville Corp. Asia Nutrition Technologies Investment Corporation	Principal activity Investment Holding Sale of flour and chicken related products Production and sale of flour related products Aquaculture trading Investment Holding Aquaculture trading Investment Holding Investment Holding Aquaculture trading Investment Holding Investment Holding Feed production and sales, breeding stock imports and exports, and food distribution Commodities trading Aquaculture trading Aquaculture trading Aquaculture trading Aquaculture trading Aquaculture trading Commodities trading Investment Holding Investment Holding Investment Holding	Shareholding December 31, 2021 Decembe r 31, 2020 % 100.00 % 100.00 % 100.00 % 100.00 % 55.00 % 55.00 % 100.00 % 100.00 % 78.40 % 78.40 % 100.00 % 100.00 % 94.66 % 94.66 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 51.00 % 51.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 90.34 % 55.30 % 65.10 % 34.09 % 100.00 % 52.04 % 100.00 % 100.00	Notes
			December 31, 2021 % 100.00 % 100.00 % 55.00 % 100.00 % 78.40 % 100.00 % 94.66 % 100.00 % 100.00 % 100.00 % 100.00 % 51.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 90.34 % 65.10 % 100.00 % 100.00
				(Note)

(Continued)

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

Name of investor Asia Nutrition Technologies Corporation and Waverly Star Ltd. Dachan Food (Asia) Limited Great Wall Northeast Asia Corporation Great Wall Northeast Asia Corporation Great Wall Northeast Asia Corporation Great Wall Northeast Asia Corporation Great Wall Northeast Asia Corporation Great Wall Northeast Asia Corporation Impreza Investment Ltd. Great Wall Kuang-Ming Investment Co., Ltd. Miyasun Great Wall (BVI) Co., Ltd. Great Wall Dalian Investment Co., Ltd. Great Wall Agritech (Liaoning) Co., Ltd.(Incorporated in BVI) Great Wall Agritech (Liaoning) Co., Ltd.(Incorporated in HK) Great Wall Agritech (Liaoning) Co., Ltd.(Incorporated in HK) Great Wall Agritech (Liaoning) Co., Ltd.(Incorporated in HK) Great Wall Agritech (Liaoning) Co., Ltd.(Incorporated in HK) Great Wall Agritech (Liaoning) Co., Ltd.(Incorporated in HK) Dongbei Agri Corp. Dongbei Agri Corp. Dongbei Agri Corp. Dongbei Agri Corp. Dongbei Agri Corp. Dongbei Agri Corp. Dongbei Agri Corp.	Name of subsidiary Dachan Food (Asia) Limited Great Wall Northeast Asia Corporation Impreza Investment Ltd. Great Wall Agritech (Liaoning) Co., Ltd. (Incorporated in BVI) Dongbei Agri. Corp. Hwabei Agri. Corp. Great Wall Kuang-Ming Investment Co., Ltd. China S&F Farm Holdings Co., Ltd. Great Wall Dalian Investment Co., Ltd. Miyasun Great Wall (BVI) Co., Ltd. Miyasun-Great Wall Foods (Dalian) Co., Ltd. Great Wall Food (Dalian) Co., Ltd. Great Wall Agritech (Liaoning) Co., Ltd.(Incorporated in HK) Great Wall Agri (Hei Long Jiang) Co., Ltd. Liaoning Great Wall Agri-Industrial Co., Ltd. Great Wall Agri (Henan) Co., Ltd. Great Wall Agrotech Huludao Co., Ltd. Shandong Dachan Biotechnology Co., Ltd. Great Wall Agri (Yingkou) Co., Ltd. Great Wall Agri (Tieling) Co., Ltd. DongBei Agri (Changchun) Co., Ltd. Dachan Livestock Development Co, Ltd. DaChan (Hunan) Feed Technologies Co., Ltd. Dachan Food (Hebei) Co., Ltd. Dachan Food (Panjin) Co., Ltd.	Principal activity Investment Holding Investment Holding Investment Holding Investment Holding Investment Holding Feed and chicken production and sales Feed and chicken production and sales Investment Holding Investment Holding Feed and chicken production and sales Feed and chicken production and sales Investment Holding Feed and chicken production and sales Feed production and sales Feed production and sales Feed production and sales Feed production and sales Feed and chicken production and sales Feed and chicken production and sales Feed and chicken production and sales Feed production and sales Feed production and sales Feed production and sales Chicken production and sales	Shareholding December 31, 2021 Decembe r 31, 2020 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 30.70 % 30.70 % 52.04 % 52.04 % 52.04 % 52.04 % 30.70 % 30.70 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 20.82 % 20.82 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04	Notes
			December 31, 2021 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 30.70 % 52.04 % 52.04 % 30.70 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 20.82 % 52.04 % 52.04 % 52.04

(Continued)

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

Name of investor Hwabei Agri Corp. Hwabei Agri Corp. Hwabei Agri Corp. Dachan Wanda ( HK) Ltd. China S&F Farm Holdings Co., Ltd. Union Manufacturing Ltd. Great Wall Kuang-Ming Investment Co., Ltd Donbei (Beijing) Consultant Co., Ltd. Liaoning Great Wall Agri- Industrial Co., Ltd. Dachan Wanda (Tianjin) Co., Ltd. Dachan Wanda (Tianjin) Co., Ltd. Dachan Wanda (Tianjin) Co., Ltd. Tianjin Dachan Prospect Research and Development Co., Ltd. Taixu & Dachan Foods (HK) Co., Ltd. Taixu & Dachan Foods (HK) Co., Ltd. Taixu & Dachan Foods (HK) Co., Ltd. Asia Nutrition Technologies (VN) Investment Co., Ltd. Asia Nutrition Technologies (VN) Co., Ltd. Asia Nutrition Technologies (VN) Co., Ltd. Asia Nutrition Technologies (VN) Co., Ltd. Asia Nutrition Technologies (VN) Co., Ltd. Asia Nutrition Technologies (VN) Investment Co., Ltd. and Great Wall International (Holdings) Ltd. Dachan (Asia-Pacific) Limited.	Name of subsidiary Dachan Wanda (HK) Ltd. Union Manufacturing Ltd. Dongbei (Beijing) Consultant Co., Ltd. Dachan Wanda (Tianjin) Co., Ltd. Yanzhou Dachan Food Co., Ltd. Great Wall Gourmet (Shanghai) Co., Ltd. Taixu & Dachan Foods Holdings Co., Ltd. Zhenglanqi Dachan Eco-Ranch Co., Ltd. Dachan Agricultural Technologies (Sichuan) Co., Ltd. Bengbu Dachan Food Co., Ltd. Tianjin Chao Cheng Food Trade Co., Ltd. Tianjin Dachan Prospect Research and Development Co., Ltd. Tian Jin Super Pig Ast Co., Ltd. Taixu & Dachan Foods (HK) Co., Ltd. Taixu & Dachan Foods (Dalian) Co., Ltd. Taixu & Dachan Foods (Bengbu) Co., Ltd. Asia Nutrition Technologies (HN) Co., Ltd. Asia Nutrition Technologies (VN) Co., Ltd. Asia Nutrition Technologies (LA) Co., Ltd. Asia Nutrition Technologies (MV) Co., Ltd. ANT Feed Co., Ltd. Dachan (Asia-Pacific) Limited. Dachan (VN) Company Limited	Principal activity Investment Holding Investment Holding Operations management services Feed and chicken production and sales Production and sale of feed, livestock and poultry farming Sale of chicken, pork, and prepared foods Investment Holding Food services, animal breeding and sales Feed production and sales; livestock farming research and consulting services Feed production and sales, poultry and livestock farming and sales, and meat and meat products processing and sales Pig farming and sales Research Meat and processed food sales Investment Holding Wholesale of pork related prepared foods Wholesale of pork related prepared foods Feed production and sales, breeding stock imports and exports, and food imports and exports Feed production and sales, breeding stock imports and exports, and food imports and exports Feed production and sales, breeding stock imports and exports, and food imports and exports Feed production and sales, breeding stock imports and exports, and food imports and exports Feed production and sales, breeding stock imports and exports, and food imports and exports Investing Holding Feed production and sales	Shareholding December 31, 2021 Decembe r 31, 2020 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 32.03 % 32.03 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 28.62 % 28.62 % 52.04 % 52.04 % 52.04 % 52.04 % 20.82 % 20.82 % 20.82 % 20.82 % 20.82 % 20.82 % 65.51 % 34.09 % 65.51 % 34.09 % 65.51 % 34.09 % 65.51 % 34.09 % 52.40 % 34.09 % 80.54 % 77.00 % 80.54 % 77.00	Notes
			December 31, 2021 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 52.04 % 32.03 % 52.04 % 52.04 % 52.04 % 28.62 % 52.04 % 52.04 % 20.82 % 20.82 % 20.82 % 65.51 % 65.51 % 65.51 % 65.51 % 52.40 % 80.54 % 80.54

(Continued)

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

Name of investor Clydebridge Ltd. Dachan Aquaculture Limited. Dachan Aquaculture Limited. Dachan Aquaculture Limited. Dachan Aqua (Tarakan) Ltd. and PT. MUSTIKA MINANUSA AURORA. Marksville Corp. Tianjin Food Investment Co., Ltd. Total Nutrition Tech. Co., Ltd. TNT Biotechnology Co., Ltd. TNT Biotechnology Co., Ltd. Dachan Food (HK) Co., Ltd. GreatWall Food Investment Co., Ltd Great Wall FeedTech Enterprise Co., Ltd. Great Wall FeedTech Enterprise Co., Ltd. Food China Inc. Food China Inc.	Name of subsidiary Dachan Aquaculture Limited. PT. MUSTIKA MINANUSA AURORA. Dachan Aqua(Tarakan) Ltd. PT. MISAJA MITRA PT. DACHAN MUSTIK AURORA Great Wall Nutrition Technologies SDN. BHD. Great Wall Food (Tianjin) Co., Ltd. TNT Biotechnology Co., Ltd. TNT Biotechnology (Tianjin) Co., Ltd. TNT Huabang Holdings Limited Great Wall Milling Co., Ltd. Trans Dynamic Corporation Great Wall FeedTech (Tianjin) Co., Ltd. Great Wall FeedTec (Ningxia) Co. Ltd. FoodChina Global Co. Ltd. Beijing FoodChina Global Information & Technology Ltd.	Principal activity Investing Holding Seafood processing Investing Holding Processing of seafood Processing of seafood Feed sales and production Flour production and sales Investment Holding Feed production and sales Investment Holding Sale of flour related products Investment Holding Feed production and sales Feed production and sales Commodities trading Commodities trading	Shareholding December 31, 2021 Decembe r 31, 2020 % 56.80 % 56.80 % 56.80 % 56.80 % 56.80 % 56.80 % 56.80 % 56.80 % 56.80 % 56.80 % 100.00 % 52.04 % 78.40 % 78.40 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 90.34 % 55.03 % 90.34 % 55.03	Notes
			December 31, 2021 % 56.80 % 56.80 % 56.80 % 56.80 % 56.80 % 100.00 % 78.40 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 90.34 % 90.34
				(Note) (Note)

Note: Food China Inc., FoodChina Global Co. Ltd., and Beijing FoodChina Global Information & Technology Ltd. were associates at June 30, 2020, and thus were not included in the consolidated financial statements.

When preparing the consolidated financial statements, the company's investments in its subsidiaries represented as shareholder equity have been written off, and significant transactions during the period have been eliminated.

2) Changes in subsidiaries included in the consolidated financial statements:

In the first quarter of 2021, Shanghai All-Household Restaurant Management Co., Ltd. was established, wherein the Group has a shareholding of 50% with control. Therefore, it is listed in the consolidated financial statements.

In the third and fourth quarter of 2021, the Group obtained 10% of non-controlling interest of Oriental Best Foods Co., Ltd., resulting in its shareholdings to increase to 100%.

In the third quarter of 2021, the Group did not proportionately subscribe for new shares of ANT Food Co., Ltd. according to its prior shareholding ratio, resulting in its shareholdings to decrease to 27.27%.

(Continued)

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

In the third quarter of 2021, the Group acquired 35.31% of non-controlling interest of its subsidiaries, Food China Inc., FoodChina Global Co. Ltd., and Beijing FoodChina Global Information & Technology Ltd., resulting its shareholdings to increase to 90.34%.

In the fourth quarter of 2021, the Group underwent restructuring. Great Wall Northeast Asia Corporation, which the Group indirectly held 52.04% shares, began to directly hold 65.1% of its subsidiaries, Asia Nutrition Technologies (VN) Investment Co., Ltd., Asia Nutrition Technologies (HN) Co., Ltd., Asia Nutrition Technologies (VN) Co., Ltd., Asia Nutrition Technologies (LA) Co., Ltd., and Asia Nutrition Technologies (MV) Co., Ltd. In addition, all shares of ANT Feed Co., Ltd., wherein the Group held 52.4% shares, alongside with Marksville Corp. and Great Wall Nutrition Technologies SDN.BHD, whose shares were fully owned by the Group, were transferred to Great Wall International (Holdings) Co., Ltd., wherein the Group held its entire shares.

Due to the organizational restructuring, the Group's shareholdings in its subsidiaries, Dachan (Asia Pacific) Limited and Dachan (VN) Company Limited, increased to 80.54%

In the first quarter of 2020, the Group obtained 30% of non-controlling interest of KouChan Mill Co., Ltd., resulting its shareholdings to increase to 85%. In the second quarter of 2020, the Group did not proportionately subscribe for new shares of KouChan Mill Co., Ltd. according to its prior shareholding ratio, resulting in its shareholdings to decrease to 55%.

In the first quarter of 2020, Neo Foods Co., Ltd. was established, wherein the Group has a shareholding of 100%.

In the first quarter of 2020, Green Pac (Fujian) Biological Technology Co., Ltd. was liquidated.

In the second quarter of 2020, Great Wall Grains International Limited was established, wherein the Group has a shareholding of 100%.

In the second quarter of 2020, the company did not proportionately subscribe for new shares of Zhong Yi Food Co., Ltd. according to its prior shareholding ratio, resulting in its shareholdings to decrease to 65%.

In the second and third quarter of 2020, the company did not proportionately subscribe for new shares of Danchen (Asia Pacific) Limited and Dachan (VN) Company Limited according to its prior shareholding ratio, resulting in its shareholdings to decrease to 77%.

In the third quarter of 2020, the subsidiary Huabang (Tianjin) Biotechnology Co., Ltd. was liquidated.

In the third quarter of 2020, the company disposed of all shares of Shandong Luhuan Biotechnology Co. Ltd and lost control.

In the third quarter of 2020, subsidiaries Fresh Aqua Limited, Global Seafood Limited, Pacific Harvest Limited, Seafood International Limited, and Universal Food Limited were established, wherein the Group has a shareholding of 100%.

(Continued)

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

In the third quarter of 2020, the company acquired more shares of Food China Inc., FoodChina Global Co. Ltd., and Beijing FoodChina Global Information & Technology Ltd., resulting in its shareholdings to increase to 55.03%. Therefore, the company gained control, and was thus included in the consolidated financial statements.

In the forth quarter of 2020, the company disposed of all shares of its subsidiary Univeral Food Corp. and lost control.

In the forth quarter of 2020, the company disposed of all shares of its subsidiary Qingdao Dachan Technologies Feed Co., Ltd. and lost control.

In the forth quarter of 2020, Green Pac Bio Co., Ltd. was liquidated.

3) Subsidiaries excluded from the consolidated financial statements: None.

(d) Foreign currencies

(i) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of Group entities 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) (Available for sale) equity 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 and presented in the foreign currency translation reserve in equity.

(Continued)

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

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 Group 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 Group 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.

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.

(e) 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.

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 Group does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by issuing equity instruments do not affect its classification.
(f) 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.

(Continued)

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

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

(g) 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 Group 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 Group 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

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

． its contractual terms give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Group 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 Group’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 Group 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 Group 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 Group’ 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;

(Continued)

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

． the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

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 Group’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 Group 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 Group 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 Group’ s claim to cash flows from specified assets(e.g. nonrecourse features)
6) Impairment of financial assets

The Group 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 Group 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.

(Continued)

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

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

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating ECL, the Group 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 Group’s historical experience and informed credit assessment as well as forward-looking information.

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

The Group 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 Group in full.

The Group 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 Group 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 Group in accordance with the contract and the cash flows that the Group expects to receive). ECLs are discounted at the effective interest rate of the financial asset.

At each reporting date, the Group assesses whether financial assets carried at amortized cost and debt securities at FVOCI are credit-impaired. A financial asset is ‘ creditimpaired’ 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;

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

． it is probable that the borrower will enter bankruptcy or other financial reorganization; or
． 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. For debt securities at FVOCI, the loss allowance is charge to profit or loss and is recognized in other comprehensive income instead of reducing the carrying amount of the asset.

The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of recovering a financial asset in its entirety or a portion thereof. For individual customers, the Group 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 Group 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 Group 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 Group’s procedures for recovery of amounts due.

7) Derecognition of financial assets

The Group 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 Group 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 Group 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 Group 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.

Interests and losses or benefits related to financial liabilities are recognized as profit and loss, and reported as financial costs under non-operating income and expenses.

(Continued)

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

Financial liabilities are reclassified into equity at the time of conversion, and the conversion does not generate profit or loss.

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).

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 Group derecognizes a financial liability when its contractual obligations are discharged, cancelled, or expired. The Group 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 Group 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 and hedge accounting

The Group 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.

(Continued)

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

(h) 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.

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

(i) 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.

(j) Investment in associates

Associates are those entities in which the Group has significant influence, but not control or joint control, over their financial and operating policies.

Investments in associates are accounted for using the equity method and are recognized initially at cost. The cost of the investment includes transaction costs. The carrying amount of the investment in associates includes goodwill arising from the acquisition less any accumulated impairment losses.

The consolidated financial statements include the Group’ s share of the profit or loss and other comprehensive income of those associates, after adjustments to align their accounting policies with those of the Group, from the date on which significant influence commences until the date on which significant influence ceases. The Group recognizes any changes of its proportionate share in the investee within capital surplus, when an associate’s equity changes due to reasons other than profit and loss or comprehensive income, which did not result in changes in actual proportionate share.

Gains and losses resulting from transactions between the Group and an associate are recognized only to the extent of unrelated Group’s interests in the associate.

When the Group’s share of losses of an associate equals or exceeds its interests in an associate, it discontinues recognizing its share of further losses. After the recognized interest is reduced to zero, additional losses are provided for, and a liability is recognized, only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the associate.

(Continued)

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

The Group discontinues the use of the equity method and measures the retained interest at fair value from the date when its investment ceases to be an associate. The difference between the fair value of retained interest and proceeds from disposing, and the carrying amount of the investment at the date the equity method was discontinued is recognized in profit or loss. The Group accounts for all the amounts previously recognized in other comprehensive income in relation to that investment on the same basis as would have been required if the associates had directly disposed of the related assets or liabilities. If a gain or loss previously recognized in other comprehensive income would be reclassified to profit or loss (or retained earnings) on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a reclassification adjustment) (or retained earnings) when the equity method is discontinued. If the Group’s ownership interest in an associate is reduced while it continues to apply the equity method, the Group reclassifies the proportion of the gain or loss that had previously been recognized in other comprehensive income relating to that reduction in ownership interest to profit or loss.

If an investment in an associate becomes an investment in a joint venture or an investment in a joint venture becomes an investment in an associate, the Group continues to apply the equity method without remeasuring the retained interest.

When the Group subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment will differ from the amount of the Group’s proportionate interest in the net assets of the associate. The Group records such a difference as an adjustment to investments, with the corresponding amount charged or credited to capital surplus. The aforesaid adjustment should first be adjusted under capital surplus. If the capital surplus resulting from changes in ownership interest is not sufficient, the remaining difference is debited to retained earnings. If the Group’s ownership interest is reduced due to the additional subscription to the shares of the associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate will be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities.

(k) 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.

(Continued)

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

(l) 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.

(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 Group.

(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
Leasehold improvement	According to leasehold period
Leased assets	According to leasehold period

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

(Continued)

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

(m) Leases

(i) Identifying a lease

At inception of a contract, the Group 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 Group 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
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.

(ii) As a lessee

The Group 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 Group’s incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate.

(Continued)

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

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.

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 Group’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 Group 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 Group 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 Group 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 Group has elected not to separate non-lease components and account for the lease and non-lease components as a single lease component.

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

(Continued)

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

(iii) As a lessor

When the Group 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 Group 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 Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset.

When the Group 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 Group 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 Group applies IFRS15 to allocate the consideration in the contract.

The Group recognizes lease payments received under operating leases as income on a straightline basis over the lease term as part of ‘rental income’.

(n) Intangible assets

(i) Goodwill
1) Recognition and measurement

Goodwill arising on the acquisition of subsidiaries is included in intangible assets. Please refer to Note 4(s) for the recognition of goodwill.

2) Subsequent evaluations

Goodwill is measured at cost, less accumulated impairment losses. For investments using the equity method, the book value of goodwill is included in the book value of the investment, and the impairment losses of such investments are not allocated to goodwill or any assets, but are part of the book value of the investment using the equity method.

(o) Impairment of non financial assets

At each reporting date, the Group 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.

(Continued)

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

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.

An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortization, if no impairment loss had been recognized.

(p) Revenue recognition
(i) Revenue from contracts with customers

Revenue is measured based on the consideration to which the Group expects to be entitled in exchange for transferring goods or services to a customer. The Group 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 Group’s main types of revenue are explained below:

1) Sale of goods – Feed and meat products

The Group manufactures feed and meat products and sells them to customers. The Group 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 Group often provides volume discounts to customers on the basis of cumulative sales within twelve months. The Group 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 Group has a right to an amount of consideration that is unconditional.

(Continued)

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

2) IT Consulting services/Advisory and Management

The Group 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 Group 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 group does not adjust any of the transaction prices for the time value of money.

(q) 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.

(ii) Defined benefit plans

The Group’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 Group, 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 Group 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 Group recognizes gains and losses on the settlement of a defined benefit plan when the settlement occurs.

(Continued)

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

(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 Group 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.

(r) 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 taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are the best estimate of the tax amount expected to be paid or received that reflects uncertainty related to income taxes, if any. It is measured using tax rates enacted or substantively enacted at the reporting date.

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 Group 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 taxes are measured at tax rates that are expected to be applied to temporary differences when they reverse, using tax rates enacted or substantively enacted at the reporting date, and reflect uncertainty related to income taxes, if any.

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

(i) the Group 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.

(Continued)

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

(s) Business combination

The Company accounts for business combinations using the acquisition method. The goodwill arising from an acquisition is measured as the excess of (i) the consideration transferred (which is generally measured at fair value) and (ii) the amount of non-controlling interest in the acquiree, both over the identifiable net assets acquired at the acquisition date. If the amount calculated above is a deficit balance, the Company recognized that amount as a gain on a bargain purchase in profit or loss immediately after reassessing whether it has correctly identified all of the assets acquired and all of the liabilities assumed.

All acquisition-related transaction costs are expensed as incurred, except for the issuance of debt or equity instruments.

For each business combination, the Group measures any non controlling interests in the acquiree either at fair value or at the non controlling interest’ s proportionate share of the acquiree’ s identifiable net assets, if the non controlling interests are present ownership interests and entitle their holders to a proportionate share of the acquiree’ s net assets in the event of liquidation. Other components of non controlling interests are measured at their acquisition-date fair values, unless another measurement basis is required by the IFRSs endorsed by the FSC.

In a business combination achieved in stages, the Group remeasures its previously held equity interest in the acquiree at its acquisition-date fair value, and recognizes the resulting gain or loss, if any, in profit or loss. In prior reporting periods, the Group may have recognized changes in the value of its equity interest in the acquiree in other comprehensive income. If so, the amount that was recognized in other comprehensive income will be recognized on the same basis as would be required if the Group had disposed directly of the previously held equity interest. If the disposal of the equity interest required a reclassification to profit or loss, such an amount will be reclassified to profit or loss.

If the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, provisional amounts for the items for which the accounting is incomplete are reported in the Group’s financial statements. During the measurement period, the provisional amounts recognized at the acquisition date are retrospectively adjusted, or additional assets or liabilities are recognized to reflect new information obtained about facts and circumstances that existed as of the acquisition date. The measurement period will not exceed one year from the acquisition date.

(t) Earnings per share

The Group 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. The Group's potentially dilutive ordinary shares include employee remuneration.

(Continued)

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

(u) Operating segments

An operating segment is a component of the Group that engages in business activities from which it may earn revenues and incur expenses (including revenues and expenses relating to transactions with other components of the Group). Operating results of the operating segment are regularly reviewed by the Group’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance. Each operating segment consists of standalone financial information.

(v) Government subsidies

A government subsidy is recognized when it is reasonably certain that the company will comply with the conditions attached to the government subsidy and will receive the subsidy. The receipt of the subsidy by the enterprise itself is not sufficient to provide conclusive evidence that the completed goods will fulfill the conditions attached to the subsidy.

Government subsidies should be recognized in profit and loss on a systematic basis during the period when the related costs that they intend to compensate are recognized as expenses by the company.

When a government subsidy is receivable, if it is used as compensation for the expenses or losses that have already occurred or for the purpose of providing immediate financial support to the company without future related costs, it shall be recognized in the profit and loss during the period when it can be received.

Asset-related subsidies (including non-monetary subsidies measured at fair value) should be classified as deferred income or as a deduction to obtain the asset's carrying amount, which is expressed in the statement of financial position.

When government subsidies need to be returned, they should be dealt with according to changes in accounting estimates. The return of subsidies related to income shall first be offset against the unamortized deferred credits recognized in connection with the subsidies. When the refund exceeds the scope of any such deferred credit, or when there is no deferred credit, the refund shall be immediately recognized in profit and loss. The return of subsidies related to assets should be recognized by increasing the asset’s carrying amount or reducing the balance of deferred income. Assuming that there is no subsidy, the accumulated additional depreciation that should have been recognized in profit and loss so far should be recognized in profit and loss immediately.

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

The preparation of the consolidated financial statements in conformity with the Regulations and the IFRSs endorsed by the FSC 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.

(Continued)

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

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements is as follows:

Impairment of property, plant and equipment, and intangible assets

In the process of evaluating the potential impairment of tangible and intangible assets other than goodwill, the Group is required to make subjective judgments in determining the independent cash flows, discount rate, useful lives, expected future income and expenses related to the specific asset groups considering of the nature of the industry. Any changes in these estimates based on changed economic conditions or business strategies and could result in significant impairment charges or reversal in future years.

(6) Explanation of significant accounts:

(a) Cash and cash equivalents

Cash on hand Revolving funds Check deposits Demand deposits Foreign currency deposits Bank financial products Time/certificate deposits Cash and cash equivalents	December 31, 2021 $ 31,070 344 754,621 4,756,830 120,297 70,375 349,464 $ 6,083,001	December 31, 2020
		47,020 344 778,720 3,356,878 58,185 70,099 177,240
		4,488,486

Please refer to note 6(ac) for the interest rate risk and the sensitivity analysis of financial assets and liabilities of the Group.

The details of financial products as of December 31, 2021 and 2020 are as follows:

(i) On December 2, 2021, the Group entered into an agreement with a bank for a floating rate principal protected note at an amount of $8,683 thousand, with an expected yield of 3.10% (linked to the three month SHIBOR interest rate), and maturing on January 4, 2022.
(ii) On October 27, 2021, the Group entered into an agreement with a bank for a floating rate principal protected note at an amount of $61,692 thousand, with an expected yield of 3.38% (linked to the three month LIBOR (USD) interest rate), and maturing on January 27, 2021.
(iii) Oon December 9, 2020, the Group entered into an agreement with a bank for a floating rate principal protected note at an amount of $70,099 thousand, with an expected yield of 2.75% (linked to the three month LIBOR interest rate), and maturing on January 11, 2021.

The Company undertook one year time deposits for its short-term financing, with the intention to fulfill its short-term cash promises instead of using them for investments or other purposes. The above time deposits can be readily transformed into a fixed amount of cash and the risk of their value being volatile is relatively low.

(Continued)

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

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

Derivative financial assets: current: Derivative instruments not used for hedging Forward exchange contracts Corn structured products Non-derivative financial assets: current: Listed company stocks Total Derivative financial liabilities: Non-hedge derivatives Forward exchange contracts Option contracts Total	December 31, 2021 $ 4,693 2,573 439 $ 7,705 December 31, 2021 $ 27,315 - $ 27,315	December 31, 2020
		9,472 11,969 439
		21,880
		December 31, 2020
		22,820 1,010
		23,830

(i) Forward exchange contracts:

December 31, 2021

			December 31, 2021	December 31, 2021
Forward exchange purchased Forward exchange purchased Forward exchange sold Forward exchange purchased Forward exchange purchased	Carrying amount - (27,315) 4,693		Amount (in thousands) Currency Maturity date USD 7,000 USD to NTD 2022.01.24-2022.05.24 USD 266,517 USD to NTD 2022.01.03-2022.05.23 USD 94,901 USD to NTD 2022.01.03-2022.04.29 December 31, 2020
	Carrying amount 9,472 (22,820)			Currency Maturity date CNY to NTD 2021.01.07-2021.03.17 USD to NTD 2021.01.04-2022.05.03

(Continued)

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

(ii) Futures and options trading

Item	Type	Open Interest	Open Interest
		Buy/Sell	Amount
December 31, 2021	Corn Type
Structured product Item
		Buy/Sell	Amount
December 31, 2020	Corn Corn Total Type
Structured product Option contract Item
		Buy/Sell	Amount
December 31, 2020	Soybean meal	Buy	700
Futures

Equity investments at fair value through other comprehensive income: Domestic listed common shares: TTET Union Co. Domestic unlisted common shares Other Total	December 31, 2021 $ 2,833,181 100,369 337 $ 2,933,887	December 31, 2020
		2,547,181 100,561 349
		2,648,091

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

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

For information on dividends received from the aforementioned equity investments measured at fair value through other comprehensive income as of December 31, 2021 and 2020, please refer to Note 6(ab).

(Continued)

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

The Group has not disposed of any strategic investments in 2021 and 2020. No accumulated profits and losses were transferred as well.

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

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, 2021 2020 Other comprehensive income after tax Net income Other comprehensive income after tax Net income $ 29,339 - 26,481 - $ (29,339) - (26,481) -	For the years ended December 31, 2021 2020 Other comprehensive income after tax Net income Other comprehensive income after tax Net income $ 29,339 - 26,481 - $ (29,339) - (26,481) -	For the years ended December 31, 2021 2020 Other comprehensive income after tax Net income Other comprehensive income after tax Net income $ 29,339 - 26,481 - $ (29,339) - (26,481) -
	Other comprehensive income after tax $ 29,339 $ (29,339)	Other comprehensive income after tax 26,481 (26,481)	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, 2021 $ 1,582,488 6,396,583 (444,500) $ 7,534,571	December 31, 2020
		1,107,562 5,539,715 (313,735) 6,333,542

(Continued)

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

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. 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, 2021	December 31, 2021
Gross carrying amount $ 6,461,166 959,964 76,940 49,977 24,877 29,949 376,198 $ 7,979,071	Weighted average loss rate 0~3% 0~10% 0~15% 0~50% 0~100% 0~100% 0~100%	Loss allowance provision
		126,968 7,958 1,859 3,166 2,908 18,980 282,661
		444,500

December 31, 2020	December 31, 2020
Gross carrying amount $ 5,220,693 664,785 105,564 41,139 199,644 136,825 278,627 $ 6,647,277	Weighted average loss rate 0~3% 0~10% 0~15% 0~50% 0~100% 0~100% 0~100%	Loss allowance provision
		101,448 5,282 1,832 6,780 4,924 14,483 178,986
		313,735

The changes in loss allowance provisions were as follows:

Balance at January 1 Impairment losses recognized Amounts written off Foreign exchange gains/(losses) Amounts recoverable Balance at December 31	For the years ended December 31, 2021 2020 $ 313,735 342,292 248,351 31,899 (84,883) (64,268) (34,007) 651 1,304 3,161 $ 444,500 313,735
	2021 $ 313,735 248,351 (84,883) (34,007) 1,304 $ 444,500

As of December 31, 2021 and 2020, accounts receivable had not been pledged as collateral.

(Continued)

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

(e) Inventory

Raw materials and consumables Materials in transit Work in progress Finished goods Farm products Total Inventory listed at fair value less costs to sell	December 31, 2021 $ 4,896,858 768,072 38,423 2,139,832 332,830 $ 8,176,015 $ 332,830	December 31, 2020 4,537,771 1,249,695 158,958 2,110,645 91,263 8,148,332 91,263

The details of the cost of sales were as follows:

Inventory that has been sold $ Write-down of inventories (Reversal of write-downs) Loss on disposal of inventory Revenue from sale of scraps $	For the years ended December 31,	For the years ended December 31,
	2021 90,809,658 (383) 12,521 (120,504) 90,701,292	2020
		69,463,542 17,163 13,356 (105,398)
		69,388,663

As of December 31, 2021 and 2020, the Group did not provide any inventories as collateral for its loans.

(f) Biological assets
(i) The details of biological assets are as follows：

Biological assets: Current Consumable biological assets: Poultry Consumable biological assets: Livestock Productive biological assets: Poultry Productive biological assets: Accumulated depreciation Productive biological assets: Livestock Productive biological assets: Accumulated depreciation Changes in the fair value of productive biological assets less costs to sell Biological assets: Current	December 31, 2021 $ 769,473 841,160 155,831 (30,637) 80,685 (15,547) 2,502 $ 1,803,467	December 31, 2020 1,055,686 589,225 112,311 (38,194) - - 1,757 1,720,785

(Continued)

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

December 31, 2021 Biological assets: Non-current Productive biological assets: Poultry $ 2,002,562 Productive biological assets: Accumulated depreciation (1,724,391) Productive biological assets: Livestock 1,109,619 Productive biological assets: Accumulated depreciation (773,550) Biological assets: Non-current $ 614,240 Changes in biological assets: Poultry Livestock Balance at January 1, 2021 $ 1,219,982 763,969 Increase due to purchases 10,140,870 417,654 Decrease due to sales (11,469,286) (2,464,113) Net increase due to reproduction (death) 1,252,148 2,524,857 Changes in fair value less costs to sell 37,485 - Effect of movements in exchange rates (5,859) - Balance at December 31, 2021 $ 1,175,340 1,242,367 Current $ 897,169 906,298 Non-current 278,171 336,069 $ 1,175,340 1,242,367 Poultry Livestock Balance at January 1, 2020 $ 1,022,894 708,453 Increase due to purchases 1,783,090 62,892 Decrease due to sales (1,879,413) (2,057,072) Net increase due to reproduction (death) 295,300 2,049,696 Changes in fair value less costs to sell (18,352) - Effect of movements in exchange rates 16,463 - Balance at December 31, 2020 $ 1,219,982 763,969 Current $ 1,131,560 589,225 Non-current 88,422 174,744 $ 1,219,982 763,969	December 31, 2020 134,821 (46,399) 261,214 (86,470) 263,166 Total 1,983,951 10,558,524 (13,933,399) 3,777,005 37,485 (5,859) 2,417,707 1,803,467 614,240 2,417,707 Total 1,731,347 1,845,982 (3,936,485) 2,344,996 (18,352) 16,463 1,983,951 1,720,785 263,166 1,983,951

(ii) Changes in biological assets:

(Continued)

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

(iii) As of December 31, 2021 and 2020, the number of poultry owned amounted to:

Underage broiler Underage breeder poultry Breeder poultry Breeder ducks Adult ducks	December 31, 2021 9,892,121 304,925 992,613 138,889 41,532 11,370,080	December 31, 2020
		8,336,072 240,286 955,599 - -
		9,531,957

(iv) As of December 31, 2021 and 2020, the number of livestock owned amounted to:

Underage swine Underage breeder swine Breeder swine Adult swine	December 31, 2021 137,407 17,074 32,331 20,592 207,404	December 31, 2020
		97,141 14,673 16,788 -
		128,602

The Group slaughtered and sold approximately $156,333,206 and $135,576,436 units of biological assets in 2021 and 2020, 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.

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

(i) Regulations and environmental risks

The Group 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.

(Continued)

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

(ii) Supply and demand risks

The Group is exposed to risks arising from fluctuations in the price and sales volume of poultry and livestock. When possible, the Group manages this risk by aligning its raising volume with market supply and demand. Management performs regular industry trend analyzes to ensure that the Group’ 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 Group’ s poultry and livestock raising is exposed to the risk of damage from climate change, diseases, and other natural forces. The Group 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 Group also insures itself against natural disasters such as floods and hurricanes.

As of December 31, 2021 and 2020, biological assets have not been pledged as collateral.

(g) Prepaid expenses

The details of prepaid expenses are as follows：

The details of prepaid expenses are as follows：
Prepaid purchases Other	December 31, 2021 $ 829,707 621,001 $ 1,450,708	December 31, 2020
		696,412 221,977
		918,389

(h) Other financial assets- current

The details of other current financial assets are as follows:

The details of other current financial assets are as follows:
Other advances receivable: associates Other advances receivable: other related parties Refundable deposits Other accounts receivable: other	December 31, 2021 $ 16,046 15,477 49,972 222,146 $ 303,641	December 31, 2020
		41,133 66,129 300,754 394,231
		802,247

(i) Obtaining non-controlling interest

The Group acquired more equity of KouChan Mill Co., Ltd. from an other related party, Kou Feng Industrial Co., Ltd., for $76,615 thousand in cash in March 2020, which increased its shareholding from 55% to 85%. In addition, the Group acquired more equity of KouChan Mill Co., Ltd. for $217,435 thousand in cash in May 2020. However, the Group did not subscribe for new shares according to its prior shareholding ratio, thus decreasing its shareholding from 85% to 55%.

(Continued)

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

The effects of the changes in shareholdings were as follows:

Carrying amount of non-controlling interest on acquisition Consideration paid to non-controlling interests	December 31, 2020 $ 76,615 (76,615) $ -

The Group acquired more equity of Oriental Best Foods Co., Ltd. in 2021 for $20,000 thousand in cash, increasing its shareholding from 90% to 100%.

The effects of the changes in shareholdings were as follows:

Carrying amount of non-controlling interest on acquisition Consideration paid to non-controlling interests Capital surplus differences between consideration and carrying amounts subsidiaries acquired	December 31, 2021 $ 12,661 (20,000) $ (7,339)

The Group acquired more equity of Foodchina Inc. in 2021 for $124,066 thousand in cash, increasing its shareholding from 55.03% to 90.34%.

The effects of the changes in shareholdings were as follows:

Carrying amount of non-controlling interest on acquisition Consideration paid to non-controlling interests	December 31, 2021 $ 124,066 (124,066) $ -

(j) Investments using the equity method

The Group’s investments using the equity method at the end of the financial reporting period is as follows:

Associates	December 31, 2021 $ 1,741,218	December 31, 2020
		1,745,344

(i) Associates

1) Associates which are material to the Group consisted of the followings:

Name of Associate	Relationship with the Group	Main operating country	Shareholding ratio
			December 31, 2021 December 31, 2020
Advent Prosperity Real Estate Development Co. Ltd	Investment in associates	PRC	% 32.64 % 32.64

(Continued)

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

There is no public quotation in the active market for affiliated companies of the Group, hence its fair value cannot be reliably measured.

The following consolidated financial information of significant associates has been adjusted according to individually prepared IFRS financial statements of these associates:

Advent Prosperity Real Estate Development Co. Ltd：

Current assets Non-current assets Current liabilities Net assets Net assets attributable to non-controlling interests Net assets attributable to the Group Operating revenue Profit (loss) from continuing operations Other comprehensive income Total comprehensive income Comprehensive income (loss) attributable to non- controlling interests Comprehensive income attributable to the Group Share of net assets of associates as of January 1, 2021 Capital increase Comprehensive income attributable to the Group Dividends received from associates Carrying amount Carrying amount of individually insignificant associates’ equity	December 31, 2021 December 31, 2020 $ 2,016,420 2,046,109 618,161 643,261 (112,724) (138,584) $ 2,521,857 2,550,786 $ - - $ 2,521,857 2,550,786 For the years ended December 31, 2021 2020 $ 37,956 32,785 (15,302) (13,484) (13,627) 39,323 $ (28,929) 25,839 $ - - $ (28,929) 25,839 For the years ended December 31, 2021 2020 $ 1,122,829 1,111,617 - - (12,884) 11,242 - - $ 1,109,945 1,122,859 December 31, 2021 December 31, 2020 $ 631,243 623,643
	2021 $ 1,122,829 - (12,884) - $ 1,109,945 December 31, 2021 $ 631,243

Current assets
Non-current assets
Current liabilities
Net assets
Net assets attributable to non-controlling interests
Net assets attributable to the Group
Operating revenue
Profit (loss) from continuing operations
Other comprehensive income
Total comprehensive income
Comprehensive income (loss) attributable to non-
controlling interests
Comprehensive income attributable to the Group
Share of net assets of associates as of January 1,
2021
Capital increase
Comprehensive income attributable to the Group
Dividends received from associates
Carrying amount
Carrying amount of individually insignificant
associates’ equity

December 31,
2021
December 31,
2020
$ 2,016,420
2,046,109
618,161
643,261
(112,724)
(138,584)
$
2,521,857
2,550,786
$
-
-
$
2,521,857
2,550,786
For the years ended December 31,
2021
2020
$ 37,956
32,785
(15,302)
(13,484)
(13,627)
39,323
$
(28,929)
25,839
$
-
-
$
(28,929)
25,839
For the years ended December 31,
2021
2020
$ 1,122,829
1,111,617
-
-
(12,884)
11,242
-
-
$
1,109,945
1,122,859
December 31,
2021
December 31,
2020
$
631,243
623,643

2021
$ 1,122,829
-
(12,884)
-
$
1,109,945
December 31,
2021
$
631,243

(Continued)

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

Attributable to the Group: Net income Other comprehensive (loss) income Comprehensive income	For the years ended December 31,	For the years ended December 31,
	2021 $ 13,072 (5,472) $ 7,600	2020
		23,239 23,928
		47,167

(k) Material non-controlling interests of subsidiaries

The material non-controlling interests of subsidiaries were as follows:

Subsidiaries	Main operation place	Percentage of non- controlling interests
		December 31, 2021 December 31, 2020
Dachan Food (Asia) Limited KouChan Mill Co., Ltd. Zhong Yi Food Co., Ltd. Asia Nutrition Technologies (VN) Investment Corporation	PRC/Cayman Islands Taiwan Taiwan Vietnam	% 47.96 % 47.96 % 45.00 % 45.00 % 35.00 % 35.00 % 34.90 % 34.90

The following information of the aforementioned subsidiaries have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers. Included in these information are the fair value adjustment made during the acquisition and relevant difference in accounting principles between the Group as at the acquisition date. Intercompany transactions were not eliminated in this information.

(i) Dachan Food (Asia) Limited's collective financial information

Current assets Non-current assets Current liabilities Non- current liabilities Net assets Non-controlling interests	December 31, 2021 $ 9,331,283 5,607,177 (3,727,523) (1,349,832) $ 9,861,105 $ 5,340,983	December 31, 2020
		11,497,958 7,288,658 (6,916,314) (2,053,025)
		9,817,277
		5,688,314

(Continued)

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

		For the years ended	For the years ended	December 31,
			2021	2020
	Sales revenue	$	40,620,333	39,770,531
	Net income	$	666,778	746,676
	Other comprehensive income		214,216	547,528
	Comprehensive income	$	880,994	1,294,204
	Profit, attributable to non-controlling interests	$	512,403	788,075
	Comprehensive income, attributable to non-	$	254,563	334,848
	controlling interests
		For the years ended		December 31,
			2021	2020
	Net cash flows from operating activities	$	2,042,403	2,092,342
	Net cash flows from investing activities		734,868	(441,168)
	Net cash flows from financing activities		(2,771,249)	(445,482)
	Net increase (loss) in cash and cash equivalents	$	6,022	1,205,692
	Dividends paid to non-controlling interests	$	(191,832)	(178,329)
(ii)	KouChan Mill Co., Ltd.'s collective financial information
			December 31,	December 31,
			2021	2020
	Current assets	$	36,690	312,742
	Non-current assets		719,467	693,756
	Current liabilities		(191,353)	(166,098)
	Non- current liabilities		(1,724)	(347)
	Net assets	$	563,080	840,053
	Ending balance of non-controlling interests	$	393,694	378,024
		For the years ended		December 31,
			2021	2020
	Sales revenue	$	740,900	806,830
	Net income	$	53,268	55,002
	Other comprehensive income		-	-
	Comprehensive income	$	53,268	55,002
	Profit, attributable to non-controlling interests	$	23,970	24,751
	Comprehensive income, attributable to non-	$	23,970	24,751
	controlling interests

(Continued)

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

Net cash flows from operating activities Net cash flows from investing activities Net cash flows from financing activities Net increase (loss) in cash and cash equivalents	For the years ended December 31, 2021 2020 $ (670) 30,401 (29,189) (13,990) 19,836 (12,096) $ (10,023) 4,315

(iii) Zhong Yi Food Co., Ltd.'s collective financial information

Current assets
Non-current assets
Current liabilities
Non- current liabilities
Net assets
Ending balance of non-controlling interests
Sales revenue
Net income
Other comprehensive income
Comprehensive income
Profit, attributable to non-controlling interests
Comprehensive income, attributable to non-
controlling interests
Net cash flows from operating activities
Net cash flows from investing activities
Net cash flows from financing activities
Net increase (loss) in cash and cash equivalents

December 31,
2021
December 31,
2020
$ 693,012
483,372
1,565,628
1,310,786
(1,187,481)
(639,552)
(5,634)
(9,801)
$
1,065,525
1,144,805
$
372,990
402,250
For the years ended December 31,
2021
2020
$
3,326,724
2,695,748
$ (83,598)
52,059
-
-
$
(83,598)
52,059
$
(29,259)
19,789
$
(29,259)
19,789
For the years ended December 31,
2021
2020
$ 259,942
216,414
(375,451)
(1,166,782)
147,882
941,387
$
32,373
(8,981)

(Continued)

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

(iv) Asia Nutrition Technologies (VN) Investment Corporation's collective financial information

December 31,
2021
December 31,
2020
$ 4,170,025
3,388,543
1,701,283
1,353,405
(3,416,726)
(2,605,355)
(444,580)
-
$
2,010,002
2,136,593
$
701,491
745,671
For the years ended December 31,
2021
2020
$
16,462,321
13,250,187
$ 212,201
597,312
(58,703)
(81,732)
$
153,498
515,580
$
74,058
179,937
$
25,846
179,937
For the years ended December 31,
2021
2020
$ 730,875
778,267
(332,563)
101,740
(276,800)
(438,448)
$
121,512
441,559
$
96,588
101,900

(l) Property, plant and equipment

The cost, depreciation, and impairment of the property, plant and equipment of the Group for the years ended December 31, 2021 and 2020, were as follows:

Cost or deemed cost: January 1, 2021 Acquisitions Additions Transfers Disposal Effect of movements in exchange rates December 31, 2021		Land	Buildings and Construction	Machinery and Equipment	Transportati on equipment	Other facilities	Leasehold improvements	Leased assets	Construction in progress	Accumulated depreciation	Total
		$ 4,918,993 - 329,013 - - - $ 5,248,006	5,786,361 - 102,349 357,871 - (101,803)	15,437,742 - 348,062 665,189 (239,625) (116,484) 16,094,884	631,884 - 60,043 12,933 (40,383) (4,402) 660,075	3,811,445 - 142,958 339,081 (81,325) (13,751)	785,252 - 28,827 14,516 (24,311) (1,736) 802,548	394 - - - - - 394	2,504,570 - 2,166,368 (1,389,590) (32,035) (6,894)	- - - - - - -	33,876,641 - 3,177,620 - (417,679) (245,070)
			6,144,778			4,198,408			3,242,419		36,391,512

(Continued)

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

Land	Buildings and Construction	Machinery and Equipment	Transportati on equipment	Other facilities	Leasehold improvements	Leased assets	Construction in progress	Accumulated depreciation	Total
$ 4,414,933 - 536,965 - 26,540 (59,445) -	5,019,423 - 104,151 - 713,711 (21,211) (29,713) 5,786,361 2,116,812 219,908 - - (9,655) 2,327,065 1,936,808 - 207,586 - - (18,139) (9,443) 2,116,812 3,817,713 3,082,615 3,669,549	14,786,854 5,992 471,627 6,890 377,233 (321,019) 110,165 15,437,742 8,813,306 838,648 - (167,986) (52,689) 9,431,279 8,191,865 5,963 793,320 - 1,073 (248,615) 69,700 8,813,306 6,663,605 6,594,989 6,624,436	585,816 - 57,493 211 44,946 (49,163) (7,419) 631,884 356,620 81,495 - (31,336) (2,860) 403,919 322,018 - 76,506 - 211 (37,728) (4,387) 356,620 256,156 263,798 275,264	3,578,936 9,795 126,340 (7,101) 312,708 (224,030) 14,797 3,811,445 2,534,191 391,841 - (75,645) (8,183) 2,842,204 2,399,547 7,781 329,307 - (13,239) (197,397) 8,192 2,534,191 1,356,204 1,179,389 1,277,254	741,111 - 40,092 - 28,009 (28,916) 4,956 785,252 527,683 66,003 - (23,098) (1,174) 569,414 460,160 - 81,128 - - (16,899) 3,294 527,683 233,134 280,951 257,569	394 - - - - - - 394 211 57 - - - 268 145 - 66 - - - - 211 126 249 183	1,929,974 - 2,083,259 - (1,503,147) (1,075) (4,441) 2,504,570 - - - - - - - - - - - - - - 3,242,419 1,929,974 2,504,570	- - - - - - - - 408,754 - 126,211 - (7,739) 527,226 389,433 - - 29,492 - - (10,171) 408,754 (527,226) (389,433) (408,754)	31,057,441 15,787 3,419,927 - - (704,859) 88,345
$ 4,918,993									33,876,641
$ - - - - -									14,757,577 1,597,952 126,211 (298,065) (82,300)
$ -									16,101,375
$ - - - - - - -									13,699,976 13,744 1,487,913 29,492 (11,955) (518,778) 57,185
$ -									14,757,577
$ 5,248,006									20,290,137
$ 4,414,933									17,357,465
$ 4,918,993									19,119,064

(i) Reversal of impairment loss

Some business groups performed poorly during the years 2021 and 2020. The Group conducted impairment tests and recognized impairment losses of $126,211 thousand and $29,492 thousand, respectively. As of December 31, 2021 and 2020, the Group’s accumulative impairment losses for the business entity were $527,226 thousand and $408,754 thousand, respectively.

(ii) In 2008, the Group 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 pledge the land to the Group.
(iii) In October 2009, the Group 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 pledge the land to the Group.

(Continued)

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

(iv) In October 2008, the Group 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 pledge the land to the Group.
(v) In April 2010, the Group acquired five lots of land (0889, etc.) for $23,179 thousand in Pizitou Section, Guanmiao Township, Tainan 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 pledge the land to the Group. As of July 2014, two lots of land (0889, 0893) totaling $22,823 thousand has been transferred under the Group, which applied as an agriculture and livestock foundation.
(vi) The Group 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 pledge the land to the Group.
(vii) The Group 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 pledge the land to the Group.
(viii) The Group acquired five lots of land (27-0, 27-1, 28-0, 29-0, 128-0) for $7,734 thousand in Zhujia Xiaosuan, Zhujiajiao Section, Zhujiao Township, Liujiao Township, Chiayi County in June 2014. 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 pledge the land to the Group.
(ix) The Group acquired one land lot (406) for $1,480 thousand in Xinzhuang Xiaoduan, Yizhu Township, Chiayi County and 18 land lots (195, etc.) for $27,482 thousand in Duanpiqian Xiaoduan, Pizitou in February 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 pledge the land to the Group.
(x) The Group acquired one land lot (440-7) for $3,617 thousand in Shitan Section, Xinpi Township, Pingtung County.
(xi) The Group 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 pledge the land to the Group.

(Continued)

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

(xii) The Group acquired one lot of land (221) in the front section of Piqian Xiaoduan, Pizitou Duanbi, Yizhu Township, Chiayi County for $9,559 thousand in April 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 pledge the land to the Group.
(xiii) The Group acquired land lots (126-1, 127) in Zhujia Xiaoduan, Zhujiajiao Section, Zhujiao Section, Liujiao Township, Chiayi County for $3,236 thousand in July 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 pledge the land to the Group.
(xiv) The Group acquired land lots (50, 51-2, 126) in Zhujia Xiaoduan, Zhujiajiao Section, Liujiao Township, Chiayi County for $4,680 thousand in November 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 pledge the land to the Group.
(xv) The Group acquired land lots (195, 195-6, 199, 199-4) in the front section of Pizitou Duanpi, Yizhu Township, Chiayi County for $2,255 thousand in October 2017. 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 pledge the land to the Group.
(xvi) The Group acquired one land lot (635) in the front section of Pizitou Duanbi, Yizhu Township, Chiayi County for $3,014 thousand in the fourth financial quarter of 2017. 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 pledge the land to the Group.
(xvii) The Group 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 pledge the land to the Group.
(xviii)The Group acquired one land lot (195) in the front section of Duanpi, Pizitou, Chiayi County for $688 thousand on January 3, 2019. 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 to pledge the land to the Group.
(xix) The Group acquired three land lots (127, 128, 129) in the front section 0127, 0128, and 0129 of Pizitou Duanpi, Yizhu Township, Chiayi County for $7,828 thousand on April 24, 2019. 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 to pledge the land to the Group.

(Continued)

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

(xx) The Company acquired three land lots (2066) in the Houying section of Xigang District, Tainan City for $33,082 thousand on March 24th, 2021. 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.
(xxi) The Company acquired three land lots (3125) in the Datunliao section of Xiaying District, Tainan City for $9,250 thousand on April 9th, 2021. 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.
(xxii)The Company acquired sixteen land lots (2835) in the Guoyihou section of Liuying District, Tainan City for $61,152 thousand on May 13th, 2021. 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 to pledge the land to the Group.
(xxiii)The Company acquired one land lot (0618-0001) in the Xinnan section of Zhuangwei Township, Yilan County for $6,738 thousand on May 26th, 2021. 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 to pledge the land to the Group.
(xxiv)The Company acquired two land lots (562) in the Erjhen section of Guantian District, Tainan City for $67,236 thousand on August 2nd, 2021. 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 to pledge the land to the Group.
(xxv) The Company acquired three land lots (779) in the Fangzilin section of Dake District, Tainan City for $10,255 thousand on August 3rd, 2021. 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 to pledge the land to the Group..
(xxvi)The Company acquired three land lots (0318-00000) in the Fangbei section of Fangyuan Township, Changhua County for $12,003 thousand on October 19th, 2021. 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 to pledge the land to the Group.
(xxvii)The Group acquired one land lot (465) in the front section of Pizitou Duanpi, Yizhu Township, Chiayi County for $2,230 thousand on October 15th, 2021. Since it is 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 to pledge the land to the Group.
(xxviii)The Group did not capitalize any interests incurred due to the construction of plant and equipment in the years 2021 and 2020.
(xxix)For gain and loss on disposal, please refer to Note 6(ab).
(xxx) No collateral were pledged for short-term borrowings, long-term borrowings, or loan commitments in the years 2021 and 2020.

(Continued)

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

(m) Right-of-use assets

Information about leases for which the Group as a lessee is presented below:

Cost: January 1, 2021 Addition Disposal/Write-off Effects of changes in foreign exchange rates December 31, 2021 Effects of retrospective application Addition Disposal/Write-off Effects of changes in foreign exchange rates December 31, 2020 Accumulated depreciation and impairment losses: January 1, 2021 Depreciation for the year Disposal/Write-off Impairment loss Effects of changes in foreign exchange rates December 31, 2021 January 1, 2020 Depreciation Disposal/Write-off Impairment loss Effects of changes in foreign exchange rates December 31, 2020 Carrying amount: December 31, 2021 January 1, 2020 December 31, 2020	Land	Buildings and construction	Machincry and equipment	Transportation equipment 67,505 15,625 (21,872) (140) 61,118 36,801 30,375 - 329 67,505 38,123 20,507 (21,711) - (93) 36,826 14,411 23,570 - - 142 38,123 24,292 22,390 29,382	XXXX	Total
	$ 1,374,796 175,510 - (26,972) $ 1,523,334 $ 1,375,535 24,840 (31,975) 6,396 $ 1,374,796 $ 128,103 78,908 (2,009) - (2,706) $ 202,296 $ 64,641 56,041 (4,351) - 11,772 $ 128,103 $ 1,321,038 $ 1,310,894 $ 1,246,693	1,295,055 11,289 (56,105) (13,352) 1,236,887 1,044,316 342,293 (92,905) 1,351 1,295,055 411,023 137,102 (7,498) - (1,225) 539,402 219,224 219,519 (30,385) - 2,665 411,023 697,485 825,092 884,032	2,499 - (2,371) (79) 49 2,399 65 - 35 2,499 1,512 509 (610) - (46) 1,365 733 794 - - (15) 1,512 (1,316) 1,666 987		- - - - - - - - - - 7,636 - - 41,327 (610) 48,353 - - - 7,498 138 7,636 (48,353) - (7,636)	2,739,855 202,424 (80,348) (40,543) 2,821,388 2,459,051 397,573 (124,880) 8,111 2,739,855 586,397 237,026 (31,828) 41,327 (4,680) 828,242 299,009 299,924 (34,736) 7,498 14,702 586,397 1,993,146 2,160,042 2,153,458

In 2021 and 2020, some segments did not perform as well, which led to the Group undergoing impairment tests. An impairment loss of 41,327 and 7,498 thousand was recognized, respectively. As of December 31, 2021 and 2020, the Group has recognized an accumulated impairment loss of 48,353 thousand and 7,636 thousand, respectively.

(n) Investment property

Investment property comprises office buildings that are leased to third parties under operating leases, including properties that are held as right-of-use assets, as well as properties that are owned by the Group. The leases of investment properties contain an initial non-cancellable lease term of 3 to 11 years.

For all investment property leases, the rental income is fixed under the contracts.

(Continued)

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

The details of investment properties are as follows:

Cost:： January 1, 2021 Effects of changes in foreign exchange rates December 31, 2021 January 1, 2020 Effects of changes in foreign exchange rates December 31, 2020 Accumulated depreciation and impairment losses: January 1, 2021 Depreciation Effects of changes in foreign exchange rates December 31, 2021 January 1, 2020 Depreciation Effects of changes in foreign exchange rates December 31, 2020 Carrying amount: December 31, 2021 December 31, 2020 Fair value: December 31, 2021 December 31, 2020	Owned property	Owned property	Accumulated depreciation - - - - - - 36,000 - - 36,000 36,000 - - 36,000 (36,000) (36,000)	Right-of-use assets Buildings and construction Total 149,700 1,041,590 (65) (3,571) 149,635 1,038,019 149,515 1,031,285 185 10,305 149,700 1,041,590 50,472 301,268 22,825 44,753 (35) (852) 73,262 345,169 25,187 240,600 25,178 58,800 107 1,868 50,472 301,268 76,373 692,850 99,228 740,322 $ 756,964 $ 773,931
	Land and improvements $ 113,640 - $ 113,640 $ 113,640 - $ 113,640 $ - - - $ - $ - - - $ - $ 113,640 $ 113,640	Buildings and construction 778,250 (3,506) 774,744 768,130 10,120 778,250 214,796 21,928 (817) 235,907 179,413 33,622 1,761 214,796 538,837 563,454

The fair value of investment properties (as measured or disclosed in the financial statements) was based on a valuation by a qualified independent appraiser who has recent valuation experience in the location and category of the investment property being valued. Fair value was measured using the market approach.

Investment properties include several commercial properties leased to others. The leases of investment properties contain an initial non-cancellable lease term of 2 to 9 years. Subsequent lease terms are negotiated with the lessee, and no contingent rent has been collected. For relevant information, please refer to Note 6(u).

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 Group, property rights are temporarily registered under the individual’s name. However, an agreement has been obtained and security measures have been adopted to pledge the land to the Group.

As of December 31, 2021 and 2020, investment properties have not been pledged as collateral.

(Continued)

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

(o) Other non current assets - other

Prepayments for building Tax credit Refundable deposits Unamortized expenses Prepaid pension Other Short-term borrowings Letters of credit Unsecured bank loans Total Unused short-term credit lines Range of interest rates		December 31, 2021 446,441 637,949 189,029 20,566 108,490 116,937 1,519,412 December 31, 2021 7,703,190 5,479,934 13,183,124 8,806,514 0.55%~3.85%	December 31, 2020
	$ $		263,169 593,025 125,500 17,844 105,259 45,339
			1,150,136
			December 31, 2020
	$ $ $		5,067,173 3,864,233
			8,931,406
			10,134,805
			0.476%~4.2%

(p) Short-term borrowings

(i) Issuance and repayment of loans

January 1, 2021 New loans (Maturity date: April 2021 to September 2022) Loans repaid Effects of changes in foreign exchange rates December 31, 2021 January 1, 2020 New loans (Maturity date: February 2020 to March 2021) Acquisitions Loans repaid Effects of changes in foreign exchange rates December 31, 2020	Total $ 8,931,406 62,043,332 (57,713,575) (78,039) $ 13,183,124 $ 8,203,563 63,891,608 183,054 (63,159,031) (187,788) $ 8,931,406

(ii) Collateral for bank loans

For more information on promissory notes pledged for short-term borrowings, please refer to Note 9.

(Continued)

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

(q) Short-term notes and bills payable

As of December 31, 2021 and 2020 , the guarantee and acceptance agencies for commercial shortterm notes are Ta Ching Bills, China Bills, Dah Chung Bills, Taiwan Cooperative Bills, and Mega Bills. The maturity dates are 2022.01.03 - 2022.02.17 and 2021.01.04 - 2021.02.02 , respectively. The interest rate ranges from 0.828%~1.800% and 0.831%~1.168%, respectively. The face values are $2,915,000 thousand and $1,987,000 thousand, respectively.

Commercial paper payable Unused short-term credit lines (i) Issuance and repayment	December 31, 2021 $ 2,914,931 $ 219,069	December 31, 2020
		1,986,931
		847,069

Balance at January 1, 2021 New loans (Maturity date: January 2021 to February 2022) Loans repaid Balance at December 31, 2021 Balance at January 1, 2020 New loans (Maturity date: January 2020 to February 2021) Loans repaid Balance at December 31, 2020	Total $ 1,986,931 22,293,000 (21,365,000) $ 2,914,931 $ 2,124,946 23,550,985 (23,689,000) $ 1,986,931

(ii) Collateral for borrowings

For more information on the Company's promissory notes and commerical papers, please refer to Note 9.

(r) Long-term borrowings

The details were as follows:

Unsecured bank loans Government loans Less: current portion Total Unused long-term credit lines Range of interest rates	December 31, 2021 $ 1,179,048 159,506 (185,336) $ 1,153,218 $ 212,690 0%~7.5%	December 31, 2020 1,897,964 329,563 (972,264) 1,255,263 928,500 0%~7.5%

(Continued)

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

(i) Issuance and repayment

Balance at January 1, 2021 New loans (Maturity date: July 2022 to September 2024) Loans repaid Effect of changes in foreign exchange rates Balance at December 31, 2021 Balance at January 1, 2020 New loans (Maturity date: November 2021 to September 2022) Loans repaid Effect of changes in foreign exchange rates Balance at December 31, 2020	Total $ 2,227,527 2,088,309 (2,971,552) (5,730) $ 1,338,554 $ 2,714,872 1,437,345 (1,883,451) (41,239) $ 2,227,527

(ii) Collateral for long-term borrowings

For more information on the Group's promissory notes and commerical papers, please refer to Note 9.

(s) Other payables

The details of other payables are as follows:

Wage and employee benefits payable Employee compensation payable Board member renumeration payable Dividends payable Dividends Other expenses and accounts payable Total	December 31, 2021 $ 1,377,110 90,000 40,000 12,087 10,509 834,662 $ 2,364,368	December 31, 2020 1,191,589 90,000 40,000 8,753 10,772 866,721 2,207,835

(t) Lease liabilities

The details of lease liabilities are as follows:

Current Non-current	December 31, 2021 $ 191,053 $ 929,787	December 31, 2020
		221,658
		1,050,393

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

(Continued)

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

The amounts recognized in profit or loss was as follows:

Interest on lease liabilities Variable lease payments not included in the measurement of lease liabilities Income from sub-leasing right-of-use assets 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, 2021 2020 $ 32,189 29,317 $ 235,849 236,955 $ (66,031) (70,647) $ 363,031 255,513 $ 21,124 20,203
	2021 $ 32,189 $ 235,849 $ (66,031) $ 363,031 $ 21,124

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

Total cash outflow for leases	2021 $ 770,938	2020
		719,947

(u) Operating lease

(i) Leases as lessor

The Group leases out its investment property and some machinery. The Group has classified these leases as operating leases, because it does not transfer substantially all of the risks and rewards incidental to the ownership of the assets. Please refer to Note 6(n) for information about the operating leases of investment property.

A maturity analysis of lease payments showing the undiscounted lease payments to be received is as follows:

Less than one year Between one and five years Over five years Total undiscounted lease payments	December 31, 2021 $ 23,592 68,936 54,306 $ 146,834	December 31, 2020
		23,618 74,972 71,540
		170,130

Rental income from investment properties both totaled 21,136 thousand.

(Continued)

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

(v) Employee benefits

(i) Defined benefit plans

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

Present value of the defined benefit obligations Fair value of planned assets Net defined benefit	December 31, 2021 $ 65,693 (169,253) $ (103,560)	December 31, 2020 74,878 (173,003) (98,125)

The Group’s employee benefit liabilities were as follows:

Total employee benefit assets Total employee benefit liabilities Total	December 31, 2021 $ (108,490) 4,930 $ (103,560)	December 31, 2020 (105,259) 7,134 (98,125)

The Group 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 Group 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 Group approved the establishment of the "Employee Pension Management Committee" in accordance with Ruling 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 Group’ s Bank of Taiwan and Taiwan Cooperative Bank labor pension reserve account balance amounted to $169,253 thousand and $173,003 thousand as of December 31, 2021 and 2020. 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. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Movements in present value of the defined benefit obligations

The movement in present value of the defined benefit obligations for the Group were as follows:

Defined benefit obligations at January 1 Current service costs and interest cost (income) Remeasurements loss (gain): －Actuarial (gain) loss arising from experience adjustments －Actuarial (gain) loss arising from financial assumptions Benefits paid Defined benefit obligations at December 31	For the years ended December 31, 2021 2020 $ 74,878 81,932 1,706 1,615 (387) (524) (2,176) 2,405 (8,328) (10,550) $ 65,693 74,878

3) Movements of defined benefit plan assets

The movements in the present value of the defined benefit plan assets for the Group were as follows:

Defined benefit obligations at January 1 Interest income 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, 2021 2020 $ 173,003 175,094 522 1,232 1,871 4,027 2,185 3,200 (8,328) (10,550) $ 169,253 173,003

4) Expenses recognized in profit or loss

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

Current service costs Net interest of net liabilities for defined benefit obligations Total (Management fee)	For the years ended December 31, 2021 2020 $ 1,482 1,055 (298) (672) $ 1,184 383

(Continued)

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

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

The Group’ s remeasurement of the net defined benefit liability (asset) recognized in other comprehensive income for the years ended December 31, 2021 and 2020, was as follows:

Accumulated amount at January 1 Recognized during the period Accumulated amount at December 31	For the years ended December 31, 2021 2020 $ (8,704) (6,558) (4,434) (2,146) $ (13,138) (8,704)

6) Actuarial assumptions

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

Discount rate Future salary increase rate	December 31, 2021 December 31, 2020 0.70% 0.30% 1.00%~2.00% 1.00%~2.00%

For the year ended 2021, the expected allocation payment to be made by the Group to the defined benefit plans for the one-year period after the reporting date is $2,195 thousand.

The weighted average lifetime of the defined benefits plans ranges from 7.5~8.4 years.

7) Sensitivity analysis

The impact on the present value of the defined benefit obligation given some changes in the actuarial assumptions shall be as follows:

December 31, 2021 Discount rate (0.25% change) Future salary increasing rate (0.25% change) December 31, 2020 Discount rate (0.25% change) Future salary increasing rate (0.25% change)	Influences of defined benefit obligations Increased Decreased $ (1,132) 1,090 976 (944) $ (1,235) 1,281 1,099 (1,066)

(Continued)

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

December 31, 2021 Discount rate (0.1% change) Future salary increasing rate (0.1% change) December 31, 2020 Discount rate (0.5% change) Future salary increasing rate (0.5% change)	Influences of defined benefit obligations Increased Decreased $ (83) 84 74 (73) $ (115) 116 102 (101)

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 2021 and 2020.

(ii) Defined contribution plans

The Group 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 Group allocates a fixed amount to the Bureau of Labor Insurance without additional legal or constructive obligation.

Chinese employees must participate in the retirement pension plan run by the relevant Chinese municipal government; that is, in the relevant year, it must be based on the standard wages determined by the relevant Chinese authorities. In the year of 2021 and 2020, the rates ranged from 14%~16% and 14.5%~16% for annual pension contributions. Except for the aforementioned contributions, the Group does not assume other major responsibilities for the retirement benefits of Chinese employees.

According to the Hong Kong Mandatory Provident Fund Schemes Ordinance, the Group also set up a mandatory provident fund scheme ("MPF Scheme") for employees hired under the Hong Kong Employment Ordinance. The MPF plan is a defined contribution retirement plan managed by an independent trustee. According to the MPF scheme, the Group and its employees contribute 6%~5% of the employee's relevant income to the plan, and the monthly relevant income of the contribution amount is limited to HK$30,000. Contributions to the plan vest immediately.

In 2021 and 2020, contributions to the Employees’ Provident Fund for Malaysian employees is 13% of the employee’s salary.

The Group also purchases statutory social security and medical insurance for qualified employees in Vietnam. Contribution ratios in 2021 and 2020 were both 20.5%.

(Continued)

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

The pension costs incurred from the contributions amounted to $295,492 thousand and $183,322 thousand for the years ended December 31, 2021 and 2020, respectively.

(w) Income taxes

(i) The components of income tax in the years 2021 and 2020 were as follows:

Current tax expense Current period Adjustment for prior periods Deferred tax expense Origination and reversal of temporary differences Adjustment in tax rate Change in unrecognized deductible temporary differences Recognition of previously unrecognized tax losses	For the years ended December 31,	For the years ended December 31,
	2021 $ 745,391 (40,417) 704,974 (24,228) (1,862) (54,189) (80,279) $ 624,695	2020 987,669 (10,360) 977,309 17,948 5,040 (89,155) (66,167) 911,142

The amount of income tax recognized in other comprehensive income for 2021 and 2020 was as follows:

as follows:
Remeasurement from defined benefit plans	For the years ended December 31,
	2021 $ 633	2020 473

(Continued)

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

Reconciliation of income tax and profit before tax for 2021 and 2020 is as follows:

Profit excluding income tax
Income tax using the Company’s domestic tax rate
Effect of tax rates in foreign jurisdiction (not applicable
for separate financial statements)
Non-deductible expenses
Tax-exempt income
Other permanent differences
Recognition of previously unrecognized tax losses
Current-year losses for which no deferred tax asset was
recognized
Change in unrecognized temporary differences
Change in provision in prior periods
Undistributed earnings additional tax
Total

For the years ended December 31,
2021
2020
$ 2,886,718
4,983,488
577,344
996,698
(128,438)
(79,846)
155,223
45,889
(40,014)
(19,466)
(128,021)
(136,219)
(54,189)
(89,155)
274,879
198,561
(1,862)
5,040
(40,417)
(10,360)
10,190
-
$
624,695
911,142

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

The Group is able to control the timing of the reversal of the temporary differences associated with investments in subsidiaries as of December 31, 2021 and 2020. 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, 2021 Aggregate amount of temporary differences related to investments in subsidiaries $ 5,875,907 Unrecognizeddeferred tax liabilities $ 1,224,060	December 31, 2020
	5,915,981
	1,232,711

2) Unrecognized deferred tax assets

Deferred tax assets have not been recognized in respect of the following items:

Tax effect of deductible temporary differences The carryforward of unused tax losses	December 31, 2021 $ 137,104 350,045 $ 487,149	December 31, 2020
		139,432 412,476
		551,908

(Continued)

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

The Group follows local tax regulations to offset net losses with taxable income during the first five to ten years for local tax reporting purposes. Deferred tax assets have not been recognized in respect of these items because it is not probable that future taxable profit will be available against which the Group can utilize the benefits therefrom.

3) Recognized deferred tax assets and liabilities

Changes in the amount of deferred tax assets and liabilities for 2021 and 2020 were as follows:

Deferred Tax Liabilities:

Defined benefit plans January 1, 2021 $ 21,135 Recognized in profit and loss debit (credit) 14 Recognized in other comprehensive profit and loss debit (credit) - December 31, 2021 $ 21,149 January 1, 2020 $ 20,635 Recognized in profit and loss debit (credit) 500 December 31, 2020 $ 21,135	Unrealized exchange gains and losses 20,583 (15,404) - 5,179 8,875 11,708 20,583	Fair value gains 11,432 (3,712) - 7,720 11,899 (467) 11,432	Other 58,573 (7,734) 599 51,438 29,996 28,577 58,573	Total 111,723 (26,836) 599 85,486 71,405 40,318 111,723

Deferred Tax Assets:

January 1, 2021 Recognized in profit and loss (debit) credit Debit other comprehensive profit and loss December 31, 2021 January 1, 2020 Recognized in profit and loss (debit) credit Debit other comprehensive profit and loss December 31, 2020	Unrealized exchange gains and losses $ - - - $ - $ - - - $ -	Other 196,094 (2,608) (34) 193,452 174,197 22,370 (473) 196,094	Total 196,094 (2,608) (34) 193,452 174,197 22,370 (473) 196,094

(Continued)

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

(iii) As of December 31, 2021, the company’s income tax for the year 2019 had been examined by the tax authorities. For domestic subsidiaries, the year up till which was assessed by the Taipei National Tax Administration is as follows:

Total Nutrition Tech. Co., Ltd.: 2019.

Huang-Ho Invest. Co., Ltd.: 2019.

City Chain Food Ltd.: 2019. May Lan Lei Co., Ltd.: 2019. Zhong Yi Food Co., Ltd：2019. Oriental Best Foods Co., Ltd.: 2019. An Hsin Chiao Chu Co., Ltd.: 2019. KouChan Mill Co., Ltd.: 2019. Nissshi Chain Co., Ltd.: 2020. Saboten Co., Ltd.: 2019. Honolulu Chain Food & Beverage Co., Ltd.: 2019.

Great Wall Feed Tech (Holdings) Ltd.: 2019.

(x) Capital and other equity

As of December 31, 2021 and 2020, 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, 852,159 thousand and 827,339 thousand ordinary shares were issued, respectively.

Reconciliation of shares outstanding for 2021 and 2020 was as follows:

(expressed in thousands)

January 1, 2021 Capitalizing undistributed earnings December 31, 2021	Ordinary	shares
	2021 $ 827,339 24,820 $ 852,159	2020
		827,339 -
		827,339

(i) Ordinary shares

A resolution was passed during the general meeting of shareholders held on July 30, 2021 to transfer an undistributed surplus of $248,202 thousand into capital increase. With the approval of the Financial Supervisory Commission, the Board of Directors had agreed on setting August 29, 2021 as the allotment date. The relevant statutory registration procedures have since been completed.

(Continued)

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

(ii) Capital surplus

The balances of capital surplus as of December 31, 2021 and 2020, were as follows:

Share capital Treasury share transactions Difference arising from subsidiary's share price and its carrying value Stock options - fair value differences of associates and joint ventures under the equity method Capital surplus - premium from merger Other	December 31, 2021 $ 2,252 1,781,586 837,631 66,918 587,144 19,235 $ 3,294,766	December 31, 2020
		2,252 1,659,108 844,969 66,918 587,144 19,235
		3,179,626

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. If the earnings are to be distributed through the issuance of new shares, an approval during the shareholders’ meeting is required. The Company authorizes the Board of Directors to distribute the dividends and bonuses or legal reserves and capital surpluses, entirely or partially, as cash dividends. Any decisions should be reported in a meeting of shareholders. The percentage of retained earnings and cash dividends distributed depends on the profit and financial situation of the year, subject to adjustments made in the shareholders’ meeting.

1) Legal reserve

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

(Continued)

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

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 Ruling 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 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, 2021 and 2020, special reserves amounted to $42,994 thousand.

In accordance with Ruling 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

Cash dividends for the year 2020 and 2019 were decided by the resolution adopted at the board meeting held at March 30, 2021 and March 27, 2020, respectively. Stock dividends for the year 2020 were decided by the resolution adopted at the general meeting of shareholders held at July 30, 2021. The relevant dividend distributions to shareholders were as follows:

2020 Amount per share Total amount $ 2.70 2,233,815 0.30 248,202 2,482,017	2019	2019
Amount per share $ 2.70 0.30	Amount per share 2.20 -	Total amount
		1,820,146 -
		1,820,146

(Continued)

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

The amount of cash dividends on the appropriations of earnings for 2021, and the amount of shares dividends of appropriations of earnings for 2021, had been approved and proposed, respectively during the board meeting on March 25, 2022, as follows:

Dividends distributed to ordinary shareholders: Cash Stock	For the years ended December 31, 2021	For the years ended December 31, 2021
	Amount per share $ 1.50 0.50	Total Amount
		1,278,239 426,080
		1,704,319

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

(iv) Treasury shares

Company shares held by subsidiaries

In 2021 and 2020, subsidiaries of the company did not acquire any new company shares. The number of shares held by subsidiaries and their respective market price are as follows:

Name of subsidiary	December 31, 2021 Market price Shares owned (thousands) $ 1,082,120 20,264 1,412,905 26,459 $ 2,495,025 46,723	December	31, 2020
	Market price $ 1,082,120 1,412,905 $ 2,495,025	Market price 999,449 1,304,963 2,304,412	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 was $363,674 thousand.

As of December 31, 2021 and 2020, the total value of company shares held by subsidiaries both amounted to $219,132 thousand.

(Continued)

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

(v) Other equity interest

Balance at January 1, 2021 Exchange differences on foreign operations Exchange differences on subsidiaries accounted for using equity method Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Balance at December 31, 2021 Balance at January 1, 2020 Exchange differences on foreign operations Exchange differences on subsidiaries accounted for using equity method Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income Balance at December 31, 2020	Exchange differences on translation of foreign financial statements $ (801,744) (108,695) (9,869) - $ (920,308) Exchange differences on translation of foreign financial statements $ (899,515) 56,596 41,175 - $ (801,744)	Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 2,185,955 - - 285,999 2,471,954 Unrealized gains (losses) from financial assets measured at fair value through other comprehensive income 1,801,643 - - 384,312 2,185,955	Total 1,384,211 (108,695) (9,869) 285,999 1,551,646 Total 902,128 56,596 41,175 384,312 1,384,211

(y) Employee compensation and directors' and supervisors' remuneration

In accordance with the memorandum of the Company should contribute no less than 2% of the profit as employee compensation and less than 2% as directors' and supervisors' 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 supervisor 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.

(Continued)

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

For the years ended December 31, 2021 and 2020, the Company's estimation for its employee remuneration both amounted to $90,000 thousand, and directors' and supervisors' remuneration amounted to $40,000 thousand. The estimated amounts mentioned above are calculated based on the net profit before tax, excluding the remuneration to employees, directors and supervisors of each period, multiplied by the percentage of remuneration to employees, directors and supervisors as specified in the Company's articles. These remunerations were expensed under operating costs or operating expenses during 2021 and 2020. If the actual amounts differ from the estimated amounts, it shall be treated according to the changes in accounting estimates, and the impact of the change shall be recognized as the profit and loss in the next year. 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 consolidated financial statements, are identical to those of the actual distributions for 2021 and 2020. Related information would be available on the Market Observation Post System website.

(z) Earnings per share
(i) Basic earnings per share

The details on the calculation of basic earnings per share as of December 31, 2021 and 2020 was based on the profit attributable to ordinary shareholders of the Group and the weighted average number of ordinary shares outstanding. Calculations are as follows:

1) Profit attributable to ordinary shareholders of the Group

Profit/(loss) attributable to ordinary shareholders of the Group	For the years ended December 31,	For the years ended December 31,
	2021 $ 1,869,385	2020
		3,122,071

2) Weighted average number of ordinary shares

Weighted average number of ordinary shares
Issued ordinary shares at January 1 Effect of treasury shares held Effect of share dividends Weighted average number of ordinary shares at December 31	For the years ended December 31,
	2021 $ 827,339 (46,723) 24,820 $ 805,436	2020
		827,339 (46,723) 24,820
		805,436

3) Basie earnings per share

Basie earnings per share	For the years ended December 31,	For the years ended December 31,
	2021 $ 2.32	2020
		3.88

(Continued)

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

(ii) Weighted average number of ordinary shares

The details on the calculation of diluted earnings per share as of December 31, 2021 and 2020 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/(loss) attributable to ordinary shareholders of the Company (diluted)	For the years ended December 31,	For the years ended December 31,
	2021 $ 1,869,385	2020
		3,122,071

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,
	2021 $ 805,436 1,956 $ 807,392	2020
		779,151 1,718
		807,208

3) Diluted earnings per share

Diluted earnings per share	For the years ended December 31,	For the years ended December 31,
	2021 $ 2.32	2020
		3.87

(aa) Revenue from contracts with customers

		For t	he year ended	December 31, 2	021
Grains	Meat	Food	Restaurants	Southeast Asia	East Asia	Other	Total
$ 25,095,966 10,751,904 4,314,507 23,569 $ 40,185,946 $ 19,311,437 19,209,672 - - 1,664,837 $ 40,185,946	12,557,486 - - - 12,557,486 1,994,735 - 10,562,751 - - 12,557,486	3,368,409 - - - 3,368,409 - - - 3,368,409 - 3,368,409	1,099,286 889,684 - - 1,988,970 - - - 1,988,970 - 1,988,970	- - - 2,639,616 2,639,616 - - - - 2,639,616 2,639,616	- 23,819,834 13,234,983 3,539,136 40,593,953 24,433,989 - 6,932,215 9,227,749 - 40,593,953	103,462 - - - 103,462 - - - - 103,462 103,462	42,224,609 35,461,422 17,549,490 6,202,321
							101,437,842
							45,740,161 19,209,672 17,494,966 14,585,128 4,407,915
							101,437,842

(Continued)

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

		For t	he year ended	December 31, 2	020
Grains	Meat	Food	Restaurant	Southeast Asia	East Asia	Other	Total
$ 20,761,370 1,434,776 - - $ 22,196,146 $ 11,915,179 9,253,041 - - 1,027,926 $ 22,196,146	11,953,589 - - - 11,953,589 1,644,615 - 10,308,974 - - 11,953,589	2,967,201 46,410 - - 3,013,611 - - - 3,013,611 - 3,013,611	1,331,240 658,467 - - 1,989,707 - - - 1,989,707 - 1,989,707	- 2,739,287 - - 2,739,287 453,438 - - - 2,285,849 2,739,287	- 21,396,077 14,361,398 3,977,777 39,735,252 24,090,707 - 7,680,991 7,963,554 - 39,735,252	23,300 - - - 23,300 - - - - 23,300 23,300	37,036,700 26,275,017 14,361,398 3,977,777
							81,650,892
							38,103,939 9,253,041 17,989,965 12,966,872 3,337,075
							81,650,892

(iii) Contract balances

Notes receivable Trade receivables Less: allowance for impairment Total Contract liabilities-unearned revenue	December 31, 2021 $ 1,582,488 6,396,583 (444,500) $ 7,534,571 $ 204,369	December 31, 2020 1,107,562 5,539,715 (313,735) 6,333,542 284,410	January 1, 2020 1,027,381 5,324,972 (342,292)
			6,010,061
			172,343

For details on trade receivables and allowance for impairment, please refer to Note 6(d).

Contract liabilities are recognized as other current liabilities, others.

The amount of revenue recognized for the years ended December 31, 2021 and 2020 that was included in the contract liability balance at the beginning of the period were $284,410 thousand and $172,343 thousand, respectively.

(ab) Net other income (expenses)
(i) Interest income

The details of interest income were as follows:

Interest income from bank deposits	For the years ended December 31,	For the years ended December 31,
	2021 $ 86,153	2020 16,558

(Continued)

GREAT WALL ENTERPRISE CO., LTD. AND SUBSIDIARIES Notes to the Consolidated 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 Dividend income Rent income Gains (Losses) on disposals of property, plant and equipment Reversal of impairment loss (Impairment loss) on property, plant and equipment Impairment loss on right-of-use assets Government subsidies Gain on disposal of subsidy Other	For the years ended December 31,	For the years ended December 31,
	2021 $ 339,482 29,776 111,467 37,201 55,694 (126,211) (41,327) 2,094 - 325,434 $ 733,610	2020
		345,523 (55,928) 96,564 52,248 27,561 (29,492) (7,498) 75,605 38,489 475,502 1,018,574

(iii) Finance costs

The details of finance costs were as follows:

Interest expense: Borrowings Interest expense: Rent liabilities Total	For the years ended December 31,	For the years ended December 31,
	2021 $ 252,434 32,189 $ 284,623	2020
		250,310 29,317 279,627

(Continued)

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

(ac) 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 Accounts receivables Other financial assets: current Financial assets measured at fair value through profit and loss Other non-current assets Total 2) Financial liabilities Short term loans Short term notes payable Financial liabilities measured at fair value through profit and loss Notes payable Accounts payable Other payables Long-term liabilities payable within one year or one operating cycle Other current liabilities: other Long-term borrowings Guarantee demand deposits Rent liabilities Total	December 31, 2021 $ 6,083,001 7,705 1,582,488 5,952,083 303,641 2,933,887 826,978 $ 17,689,783 December 31, 2021 $ 13,183,124 2,914,931 27,315 695,453 5,246,498 2,364,368 185,336 87,393 1,153,218 90,603 1,120,840 $ 27,069,079	December 31, 2020
		4,488,486 21,880 1,107,562 5,225,980 802,247 2,648,091 718,525
		15,012,771
		December 31, 2020
		8,931,406 1,986,931 23,830 219,123 4,516,214 2,207,835 972,264 131,860 1,255,263 83,332 1,272,051
		21,600,109

(Continued)

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

(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, 2021 and 2020, the Group’ s maximum exposure to credit risk amounted to $14,755,457 thousand and $12,364,241 thousand, respectively.

2) Concentration of credit risk

The Group 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 was 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.

(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, 2021 Short term loans Short term loans payable Financial liabilities measured at fair value through other comprehensive income: current Note and accounts payable Other payables Long term liabilities payable within one year or one operating cycle Other current liabilities: other Long term borrowings Guarantee demand deposits Rent liabilities December 31, 2020 Short term loans Short term loans payable Financial liabilities measured at fair value through other comprehensive income: current Note and accounts payable Other payables Long term liabilities payable within one year or one operating cycle Other current liabilities: other Long term borrowings Guarantee demand deposits Rent liabilities	Carrying amount $ 13,183,124 2,914,931 27,315 5,941,951 857,258 185,336 87,393 1,153,218 90,603 1,120,840 $ 25,561,969 $ 8,931,406 1,986,931 23,830 4,735,337 886,246 972,264 131,860 1,255,263 83,332 1,272,051 $ 20,278,520	Contractual cash flows 13,210,653 2,915,000 27,315 5,491,951 857,258 186,159 87,393 1,192,341 90,604 1,301,374 25,360,048 8,971,882 1,987,632 23,830 4,735,337 886,246 992,594 131,860 1,300,542 83,332 1,569,726 20,682,981	Within 6 months 13,210,653 2,915,000 27,315 5,491,951 857,258 - 87,393 - 31,956 99,762 22,721,288 8,971,882 1,987,632 23,830 4,735,337 886,246 - 131,860 - 31,381 133,327 16,901,495	6-12 months - - - - - 186,159 - - 2,708 84,213 273,080 - - - - - 992,594 - - 2,456 121,442 1,116,492	1-2 years - - - - - - - - 22,495 143,565 166,060 - - - - - - - - 16,492 191,561 208,053	2-5 years - - - - - - - 1,192,341 32,802 286,205 1,511,348 - - - - - - - 1,300,542 32,360 399,376 1,732,278	Over 5 years
							- - - - - - - - 643 687,629
							688,272
							- - - - - - - - 643 724,020
							724,663

(Continued)

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

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

Financial liabilities Monetary items USD CNY	December 31, 2021 Foreign currency Exchange rate TWD $ 401,713 27.815 11,173,500 17,899 4.341 77,708	December 31, 2021 Foreign currency Exchange rate TWD $ 401,713 27.815 11,173,500 17,899 4.341 77,708	December 31, 2020	December 31, 2020
	Foreign currency $ 401,713 17,899	Exchange rate 27.815 4.341	Foreign currency 253,895 81,365	Exchange rate TWD 29.624 7,521,449 4.365 355,141

2) Sensitivity analysis

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on long-term loans and short-term borrowings in foreign currencies. On December 31, 2021 and 2020, a strengthening (weakening) of 1% of the NTD against the USD and the RMB, ceteris paribus, would have increased (decreased) the net profit after tax by $112,512 thousand and $78,766 thousand, respectively. The analysis is performed on the same basis for both years.

3) Foreign exchange gain and loss on monetary items

Since the Group 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 2021 and 2020, please refer to Note 6(ab).

(v) Interest rate analysis

Please refer to the notes on liquidity risk management and interest rate exposure of the Group'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 Group management's assessment of the reasonably possible interest rate change.

If the interest rate had increased / decreased by 1 basis points, ceteris paribus, the Group’s net income would have increased / decreased by $42,126 thousand and $42,905 thousand in 2021 and 2020, respectively. This is mainly due to the Group’ s borrowing at variable rates and investment in variable-rate bills.

(Continued)

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

(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 Group’ 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:

Financial assets measured at fair value through profit and loss Derivative instruments not used for hedging Forward exchange contracts Corn structured products Non-derivative financial assets: current Stocks in listed companies Subtotal Financial assets measured at fair value through other comprehensive profit and loss Stocks in listed companies Stocks in unlisted companies Other Subtotal Financial liabilities measured at fair value through profit and loss Derivative instruments not used for hedging Forward exchange contracts		December 31, 2021	December 31, 2021	December 31, 2021	Total 4,693 2,573 439 7,705 2,833,181 100,369 337 2,933,887 (27,315)
	Book value $ 4,693 2,573 439 $ 7,705 $ 2,833,181 100,369 337 $ 2,933,887 $ (27,315)		Fair Value
		Level 1 - - 439 439 2,833,181 - - 2,833,181 -	Level 2 4,693 2,573 - 7,266 - - 337 337 (27,315)	Level 3 - - - - - 100,369 - 100,369 -

(Continued)

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

Financial assets measured at fair value through profit and loss Derivative instruments not used for hedging Forward exchange contracts Corn structured products Non-derivative financial assets: current Stocks in listed companies Subtotal Financial assets measured at fair value through other comprehensive profit and loss Stocks in listed companies Stocks in unlisted companies Other Subtotal Financial liabilities measured at fair value through profit and loss Derivative instruments not used for hedging Forward exchange contracts Option contracts Subtotal		December 31, 2020	December 31, 2020	December 31, 2020	Total 9,472 11,969 439 21,880 2,547,181 100,561 349 2,648,091 (22,820) (1,010) (23,830)
	Book value $ 9,472 11,969 439 $ 21,880 $ 2,547,181 100,561 349 $ 2,648,091 $ (22,820) (1,010) $ (23,830)		Fair Value
		Level 1 - - 439 439 2,547,181 - - 2,547,181 - - -	Level 2 9,472 11,969 - 21,441 - - 349 349 (22,820) (1,010) (23,830)	Level 3 - - - - - 100,561 - 100,561 - - -

2) Valuation techniques for financial instruments measured at fair value

a) Non-derivative financial 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. Whether transactions are taking place ‘regularly’ is a matter of judgment and depends on the facts and circumstances of the market for the instrument.

(Continued)

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

Quoted market prices may not be indicative of the fair value of an instrument if the activity in the market is infrequent, the market is not well-established, only small volumes are traded, or bid-ask spreads are very wide. Determining whether a market is active involves judgment. Measurements of fair value of financial instruments without an active market are based on a valuation technique or quoted price from a competitor. Fair value measured by a valuation technique can be extrapolated from similar financial instruments, the discounted cash flow method, or other valuation technique including a model using observable market data at the reporting date.

If the financial instruments held by the Group 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.

If the financial instruments held by the Group 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 Group 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 Group 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(n).

3) Transfers between Level 1 and Level 2

There were no significant transfers between Level 1 and Level 2 in both 2021 and 2020.

(Continued)

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

4) Reconciliation of Level 3 fair values

January 1, 2021 Effect of changes in foreign exchange rates December 31, 2021 January 1, 2020 Capital reduction Effect of changes in foreign exchange rates December 31, 2020	Measured at fair value through other comprehensive income $ 100,561 (192) $ 100,369 $ 101,427 (506) (360) $ 100,561

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

The Group’ s Level 3 financial instruments measured at fair value mainly include financial assets: equity instruments measured at fair value through other comprehensive profit and loss.

The Company’s Level 3 financial instruments measured at fair value possess multiple significant unobservable inputs. The significant unobservable input values of equity instrument investments without an active market are independent of each other, thus, there is no correlation between them.

Quantified information of significant unobservable inputs was as follows:

Item Financial liabilities measured at fair value through profit or loss – equity investment without an active market	Valuation technique Market approach	Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement ．Discount due to lack of market liquidity (30% for both 2021.12.31 and 2020.12.31) ．P/E Multiplier (9.14~34.22 and 18.39~26.49 for 2021.12.31 and 2020.12.31, respectively) ．The higher the discount due to a lack of market liquidity, the lower the fair value ．The higher the multiplier and premium for control, the higher the fair value

(Continued)

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

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

For fair value measurements in Level 3, changing one or more of the assumptions to reflect reasonably possible alternative assumptions would have the following effects:

December 31, 2021 Financial assets at fair value through profit or loss Equity investment without an active market December 31, 2020 Financial assets at fair value through profit or loss Equity investment without an active market	Input P/E Ratio P/E Ratio	Changes 5% 5%	Other comprehensive income Favorable Unfavorabl e 6,601 (6,601) 6,775 (6,775)

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 Group has financial instruments transactions applicable to the International Financial Reporting Standards Sections 42 NO. 32 approved by the FSC which required for offsetting. The following tables present the aforesaid offsetting financial assets and financial liabilities:

December 31, 2021	December 31, 2021	December 31, 2021	December 31, 2021	netting arrangement or similar agreement Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received Net amount (e)=(c)-(d) 4,693 - - - - 2,573 4,693 - 2,573	netting arrangement or similar agreement Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received Net amount (e)=(c)-(d) 4,693 - - - - 2,573 4,693 - 2,573
Financial assets that are offset which have an exercisable master
Forward exchange contracts Corn structured products Total	Gross amounts of recognized financial assets (a) $ 4,693 2,573 $ 7,266	Gross amounts of financial assets offset in the balance sheet (b) - - -	Net amount of financial liabilities presented in the balance sheet (c)=(a)-(b) 4,693 2,573 7,266	Amounts not off set in the balance sheet (d) Financial instruments (Note) Cash collateral received 4,693 - - - 4,693 -
				Financial instruments (Note) 4,693 - 4,693
					- 2,573
					2,573

(Continued)

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

December 31, 2021 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 $ (27,315) - (27,315) (4,693) - (22,622)	December 31, 2021 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 $ (27,315) - (27,315) (4,693) - (22,622)	December 31, 2021 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 $ (27,315) - (27,315) (4,693) - (22,622)	December 31, 2021 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 $ (27,315) - (27,315) (4,693) - (22,622)	December 31, 2021 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 $ (27,315) - (27,315) (4,693) - (22,622)
Financial liabilities that are offset which have an
Forward exchange contracts	Gross amounts of recognized financial liabilities (a) $ (27,315)	Gross amounts of financial liabilities offset in the balance sheet (b) -	Net amount of financial liabilities presented in the balance sheet (c)=(a)-(b) (27,315)	Amounts not off set in the balance sheet (d) Financial instruments Cash collateral received (4,693) -
				Financial instruments (4,693)

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 $ 9,472 - 9,472 8,081 - 1,391 Corn structured products 11,969 - 11,969 - - 11,969 Total $ 21,441 - 21,441 8,081 - 13,360 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 $ (22,820) - (22,820) (8,081) - (14,739) Options (1,010) - (1,010) - - (1,010) Total $ (23,830) - (23,830) (8,081) - (15,749)	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 $ 9,472 - 9,472 8,081 - 1,391 Corn structured products 11,969 - 11,969 - - 11,969 Total $ 21,441 - 21,441 8,081 - 13,360 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 $ (22,820) - (22,820) (8,081) - (14,739) Options (1,010) - (1,010) - - (1,010) Total $ (23,830) - (23,830) (8,081) - (15,749)	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 $ 9,472 - 9,472 8,081 - 1,391 Corn structured products 11,969 - 11,969 - - 11,969 Total $ 21,441 - 21,441 8,081 - 13,360 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 $ (22,820) - (22,820) (8,081) - (14,739) Options (1,010) - (1,010) - - (1,010) Total $ (23,830) - (23,830) (8,081) - (15,749)	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 $ 9,472 - 9,472 8,081 - 1,391 Corn structured products 11,969 - 11,969 - - 11,969 Total $ 21,441 - 21,441 8,081 - 13,360 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 $ (22,820) - (22,820) (8,081) - (14,739) Options (1,010) - (1,010) - - (1,010) Total $ (23,830) - (23,830) (8,081) - (15,749)	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 $ 9,472 - 9,472 8,081 - 1,391 Corn structured products 11,969 - 11,969 - - 11,969 Total $ 21,441 - 21,441 8,081 - 13,360 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 $ (22,820) - (22,820) (8,081) - (14,739) Options (1,010) - (1,010) - - (1,010) Total $ (23,830) - (23,830) (8,081) - (15,749)
Financial liabilities that are offset which have an
Forward exchange contracts Corn structured products Total	Gross amounts of recognized financial liabilities (a) $ 9,472 11,969 $ 21,441	Gross amounts of financial liabilities offset in the Net amount of financial liabilities presented in the balance balance sheet (b) sheet (c)=(a)-(b) - 9,472 - 11,969 - 21,441 December 31, 2020		Amounts not off set in the balance sheet (d) Financial instruments Cash collateral received 8,081 - - - 8,081 -
				Financial instruments 8,081 - 8,081
Financial liabilities that are offset which have an
Forward exchange contracts Options Total	Gross amounts of recognized financial liabilities (a) $ (22,820) (1,010) $ (23,830)	Gross amounts of financial liabilities offset in the balance sheet (b) - - -	Net amount of financial liabilities presented in the balance sheet (c)=(a)-(b) (22,820) (1,010) (23,830)	Amounts not off set in the balance sheet (d) Financial instruments Cash collateral received (8,081) - - - (8,081) -
				Financial instruments (8,081) - (8,081)

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

(ad) Financial risk management
(i) Overview

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

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

(Continued)

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

The following likewise discusses the Group’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 consolidated 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 Group’s risk management policies are established to identify and analyze the risks faced by the Group, 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 Group’ s activities. The Group, 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.

The Group's Audit Committee oversees how management monitors compliance with the Group’ s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Group. The Group's Audit Committee 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 Audit Committee.

(iii) Credit risk

The Group’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 Group 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 Group’s Risk Management Committee has established a credit policy under which each new customer is analyzed individually for creditworthiness before the Group’ 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 Group’s benchmark creditworthiness may transact with the Group only on a prepayment basis.

(Continued)

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

The Group’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 Group has set up provisions for 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.

2) Investments

The Group 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 major 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 Group’s finance department. The Group only deals with banks, other external parties, corporate organizations, government agencies and financial institutions with good credit rating. The Group 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 Group’ s policy to provide financial guarantees as of December 31, 2021 and 2020, please refer to Note 13(a).

(iv) Liquidity risk

The Group'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 Group are included in the profit and loss statement of the financial assets and the financial assets available for sale 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 Group 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 Group has been determined, and there is no significant cash flow risk.

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group’ 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 Group’s reputation.

(Continued)

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

The Group 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, 2021 and 2020, the Group's unused credit line amounted to $9,238,273 thousand and $11,910,374 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 Group’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.

Equity securities held by the Group mainly include financial assets whose fair value changes are included in profit and loss. 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 Group’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 Group 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.

The fair value of bank financial products invested by the Group will fluctuate according to market interest rates, so the Group will be exposed to the risk of changes in market prices.

1) Currency risk

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

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

For group 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 Group, mainly denominated in NTD, but sometimes in USD or RMB. In this case, economic hedging is provided without the need to sign derivatives, so hedging accounting is not adopted.

(Continued)

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

Regarding other monetary assets and liabilities denominated in foreign currencies, the Group 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, 2021 and 2020, the short-term and long-term borrowings of the Group 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(ac).

3) Other market price risk

The Group is exposed to equity price risk due to the investments in equity securities. This is a strategic investment and is not held for trading. The Group’s exposure to equity price risk is mainly due to the equity financial instruments within the food industry on Taiwan’ s local stock exchange. In addition to meeting the expected consumption and sales demand, the Group has not signed any commodity contracts; these commodity contracts are not delivered on a net basis.

(ae) 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 Group. The board of directors controls the debt-to-capital ratio and at the same time controls the level of ordinary stock dividends.

The Group’s debt-to-equity ratios at the end of the reporting period as of December 31, 2021 and 2020, are as follows:

Total liabilities Less: Cash and cash equivalents Net debt Total equity Debt-to-equity ratio	December 31, 2021 $ 28,992,521 (6,083,001) $ 22,909,520 $ 27,739,609 % 45.23	December 31, 2020 23,806,284 (4,488,486) 19,317,798 27,886,752 % 40.92

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

The Group’s investing and financing activities which did not affect the current cash flow in the years ended December 31, 2021 and 2020, were as follows:

(i) For information on obtaining right-of-use assets by lease, please refer to Note 6(m) for details.

(Continued)

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

(ii) Reconciliation of liabilities arising from financing activities were as follows:

Long-term borrowings Short-term borrowings Short term notes payable Guarantee demand deposits Rent liabilities Other current liabilities: other Total liabilities from financing activities	2021.1.1 $ 2,227,527 8,931,406 1,986,931 83,332 1,272,051 151,086 $ 14,652,333	Cash flow (883,243) 4,329,757 928,000 7,271 (184,776) (818) 4,196,191	Non-cash	changes Changes in exchange rates (5,730) (78,038) - - - - (83,768)	December 31, 2021 1,338,554 13,183,125 2,914,931 90,603 1,120,840 150,268
			Rent - - - - 33,565 - 33,565
					18,798,321

Non-cash changes	Non-cash changes	December 31, 2020
Rent - - - - 307,429 - 307,429	Changes in exchange rates (41,239) (187,788) - - - - (229,027)
		2,227,527 8,931,406 1,986,931 83,332 1,272,051 151,086
		14,652,333

(7) Related-party transactions:

(a) Names and relationship with related parties

The followings are entities that have had transactions with related party during the periods covered in the consolidated financial statements.

in the consolidated financial statements.
Name of related party	Relationship with the Group
FoodChina Inc.	Associate (Note)
Advent Prosperity Real Estate Development	Associate
Co., Ltd
Dachan Liangyou Food (Shanghai) Co., Ltd.	Associate
Dachan Liangyou Food (Tianjin) Co., Ltd.	Associate
Tianjin Hai Rei Food Limited	Associate
Gallant / Dachan Seafood Co., Ltd.	Associate
Rupp & Dachan Foods (Tianjin) Co., Ltd.	Associate
San Inn Abattoir Co.	Associate
Marubeni Corporation	Other related party
Marubeni(Dallian) Co., Ltd.	Other related party
Kou Feng Industrial Co., Ltd.	Other related party
TTET Union Corporation	Other related party
Beijing Hengtaifeng Catering Co.,Ltd.	Other related party

(Continued)

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

Name of related party	Relationship with the Group
DaCheng Land Development Ltd.	Other related party
Mengcun Hui Autonomous County	Other related party
Construction Investment Co., Ltd.
BGI Genomics Co., Ltd	Other related party
Better Me Food Technology (Beijing) Co.,Ltd.	Other related party (Key management personnel)
Beijing Sisters Kitchen Food and Beverage	Other related party (Key management personnel)
Management Co.

Beijing Daxiao Nutrition Food Science and Other related party (Key management personnel) Technology Co., Ltd.

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 Group to related parties were as follows:

The amounts of significant sales by the Group to related	parties were as follows:	parties were as follows:
Associates Other related parties	For the years ended December 31,
	2021 $ 58,198 687,065 $ 745,263	2020
		1,387,386 736,931
		2,124,317

The sales prices and trading conditions listed above are not significantly different from general customer sales.

Amounts 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 Group from related parties were as follows:

Associates Other related parties	For the years ended December 31,	For the years ended December 31,
	2021 $ 500,339 591,998 $ 1,092,337	2020
		1,071,182 834,388
		1,905,570

The terms and pricing of purchase transactions with related parties were not significantly different from those offered by other vendors. The payment terms ranged from one to two months, which were no different from the payment terms given by other vendors.

(Continued)

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

(iii) Receivables from Related Parties

The receivables from related parties were as follows:

Account	Relationship	December 31, 2021 $ 5,826 60,767 16,045 15,477 $ 98,115	December 31, 2020
Notes receivables Accounts receivables Other accounts receivable (other financial assets: current) Other accounts receivable (other financial assets: current)	Associates Other related parties Associates Other related parties		1,004 31,202 41,133 66,129
			139,468

(iv) Payables to Related Parties

The payables to related parties were as follows:

Account	Relationship	December 31, 2021 $ 34,446 15,457 1,882 13,782 $ 65,567	December 31, 2020
Accounts receivables Accounts receivables Other accounts receivable (other financial assets: current) Other accounts receivable (other financial assets: current)	Associates Other related parties Associates Other related parties		31,828 65,048 3,855 190,630
			291,361

(v) Guarantee

The Group provided guarantees for loans for other related parties during the years ended December 31, 2021 and 2020, with a quota of $305,004 thousand and $306,022 thousand, respectively.

(vi) Processing fee

Processing fees in 2021 and 2020 are as follows:

Other related parties	For the years ended December 31,	For the years ended December 31,
	2021 $ 261,664	2020 309,670

The Group commissioned TTET Union Corporation to process soybeans and soybean crude oil ～～ in 2021 and 2020. The processing fee of soybeans was 810 1,175 and 809 1,167 per metric ton, respectively. Processing of soybean crude oil was charged 833~929 and 822~968 per metric ton, respectively.

(Continued)

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

(vii) Leases

The Group leased its buildings used for production and its premises to related companies in January 2015, and signed a 15-year lease contract with a 30-year depreciation period based on the book value (the residual value withdrawal ratio is 5%). The calculated depreciation expenses are used as rent, and the annual rent calculation formula for the first five years = book value (1/5%)/30. In the last ten years of the lease, in addition to the depreciation expenses mentioned above, the cost of funds calculated at the beginning of the year based on the book value of the premises and the one-year benchmark loan interest rate of the People's Bank of China is added as the rent. Annual rent calculation for the next ten years = book value (1 5%)/30 + capital cost of the nth year. Moreover, for office buildings leased to related companies, the contracts are signed every year, and the monthly rent is calculated based on the leased area and the actual monthly utility bill. The company revised the contract on July 26, 2016. In order to support the development of related parties and reduce their operating expenses, the lease period of the office building was changed to July 1, 2015 to December 31, 2019. Rent was also reduced to 0. On January 1, 2020, the company revised its contract again in order to support the development of related parties and reduce their operating expenses. The lease period of the office building was revised to January 1, 2020 to December 31, 2020. Rent was also reduced by RMB 4,447 thousand. Rental income for 2021 and 2020 amounted to $13,777 thousand and $14,382 thousand (tax included). As of December 31, 2021 and 2020, there were no outstanding payments.

The Group leased its buildings used for production and its premises to other related parties in January 2014 and signed a lease contract. On December 1, 2018, the contract was revised to $225,000 thousand (tax included) collected on a quarterly basis from January 1, 2019. Rental income for the year ended 2021 and 2020 amounted to 11,877 thousand and 10,026 thousand (tax included), respectively. As of December 31, 2021 and 2020, outstanding payments amounted to 931 thousand and 0 thousand, respectively. For other current financial assets, please refer to Note 7(b)iii.

(viii) Management services

Management services for the years 2021 and 2020 comprised:

Associate Other related party	For the years ended December 31,	For the years ended December 31,
	2021 14,282 $ 3,302 $ 17,584	2020
		15,442 4,480
		19,922

(ix) Property transaction

In the third quarter of 2021, the Group purchased land located at the Guolian Section in Taoyuan District from an other related party, Kou Feng Industrial Co., Ltd.. The land was 587.12 square meters, totaling $15,399 thousand. As of December 31, 2021, the transfer of land ownership and all payments have been completed.

For information on the stocks of KouChan Mill Co., Ltd. the Group purchased from Kou Feng Industrial Co., Ltd., please refer to Note 6(i).

(Continued)

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

(c) Key management personnel compensation

Key management personnel compensation comprised:

Short term employee benefits Post-employeement benefits	For the years ended December 31,	For the years ended December 31,
	2021 $ 154,988 1,574 $ 156,562	2020
		154,333 1,479
		155,812

In 2021 and 2020, the Group recognized costs of 5,533 thousand and 8,580 for 3 and 5 cars for the use of key management personnel, respectively.

(8) Pledged assets:

The carrying values of pledged assets were as follows:

Pledged assets	Object Natural gas, fertilizers, lease premium, etc.	December 31, 2021 $ 4,144	December 31, 2020
Certificate of time deposits (Other current assets, others)			2,916

(9) Significant Commitments and contingencies:

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

Acquisition of property, plant and equipment (unpaid)	December 31, 2021 $ 4,460,498	December 31, 2020
		3,040,520

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

Outstanding standby letter of credit (USD) Outstanding standby letter of credit (TWD) Outstanding standby letter of credit (JPY) Outstanding standby letter of credit (EUR) Outstanding standby letter of credit (GBP)	December 31, 2021 USD 115,822 TWD - JPY 977,240 EUR 97 GBP -	December 31, 2020
		39,325
		5,648
		231,500
		2,046
		12

(Continued)

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

Outstanding promissory notes	December 31, 2021 $ 22,248,271	December 31, 2020
		19,697,860

(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:

follows:
By funtion By item	For the year ended December 31
	2021				2020
	Cost of Sale	Operating Expense	Total	Cost of Sale	Operating Expense	Total
Employee benefits
Salary	2,729,837	2,715,325	5,445,162	2,149,828	2,538,003	4,687,831
Labor and health insurance	186,756	194,286	381,042	147,717	165,095	312,812
Pension	134,204	162,472	296,676	76,022	107,683	183,705
Others	85,865	85,360	171,225	83,521	88,616	172,137
Depreciation	1,384,726	501,823	1,886,549	1,254,486	592,151	1,846,637
Depletion	-	-	-	-	-	-
Amortization	27,074	19,391	46,465	22,379	22,411	44,790

(Continued)

GREAT WALL ENTERPRISE CO., LTD. AND SUBSIDIARIES Notes to the Consolidated 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.	City Chain Food Ltd.	Other receivables : related parties	Yes	100,000	100,000	-	1.2%	2	-	Business financing	-	None	-	4,020,351	8,040,701
0	〃	Mei Lan Lei Co., Ltd.	〃	Yes	1,600,000	1,600,000	161,397	1.2%	2	-	〃	-	〃	-	4,020,351	8,040,701
0	〃	Total Nutrition Tech. Co., Ltd.	〃	Yes	50,000	50,000	-	1.2%	2	-	〃	-	〃	-	4,020,351	8,040,701
0	〃	Huang-Ho Invest. Co., Ltd.	〃	Yes	50,000	50,000	-	1.2%	2	-	〃	-	〃	-	4,020,351	8,040,701
0	〃	Oriental Best Foods Co., Ltd.	〃	Yes	100,000	100,000	56,000	1.2%	2	-	〃	-	〃	-	4,020,351	8,040,701
0	〃	Great Wall International (Holdings) Ltd.	〃	Yes	417,150	415,350	276,900	0%	2	-	〃	-	〃	-	4,020,351	8,040,701
1	Great Wall International (Holdings) Ltd.	Great Wall Milling Co., Ltd.	〃	Yes	8,559	7,199	7,199	0%	2	-	〃	-	〃	-	3,034,667	3,034,667
1	〃	GREAT WALL INTERNATI ONAL LIMI TED	〃	Yes	279,660	276,900	-	0%	2	-	〃	-	〃	-	3,034,667	3,034,667
1	〃	Tianjin Food Investment Co., Ltd.	〃	Yes	314,805	276,346	276,346	2%	2	-	〃	-	〃	-	3,034,667	3,034,667
2	Dachan Food (Asia) Limited	Dachan Food (Asia) Limited	〃	Yes	1,328,197	1,301,430	1,301,430	0%	2	-	〃	-	〃	-	3,327,053	3,327,053
2	〃	Miyasun- Great Wall Foods (Dalian) Co., Ltd.	〃	Yes	99,859	96,915	96,915	0%	2	-	〃	-	〃	-	3,327,053	3,327,053
2	〃	Great Wall Agri (Yingkou) Co., Ltd.	〃	Yes	456,496	443,040	443,040	0%	2	-	〃	-	〃	-	3,327,053	3,327,053
2	〃	Dachan Food (Hebei) Co., Ltd.	〃	Yes	251,073	243,672	243,672	0%	2	-	〃	-	〃	-	3,327,053	3,327,053
3	Route 66 Fast Food Ltd.	Beijing Universal Chain Food Co., Ltd.	〃	Yes	55,502	54,501	54,501	0%	2	-	〃	-	〃	-	382,712	382,712
3	〃	Tai Ji Food Co., Ltd.	〃	Yes	41,969	40,843	40,843	0%	2	-	〃	-	〃	-	382,712	382,712
3	〃	Tianjin Food Invest Co., Ltd	〃		27,414	16,122	16,122	0%		-	〃	-	〃	-	382,712	382,712
4	City Chain Food Ltd.	Tai Ji Food Co., Ltd.	〃	Yes	31,384	30,459	30,459	0%	2	-	〃	-	〃	-	765,675	765,675
4	〃	Tianjin Food Invest Co., Ltd	〃	Yes	135,744	133,766	133,766	0%	2	-	〃	-	〃	-	765,675	765,675
4	〃	Route 66 Fast Food Ltd.	〃	Yes	82,252	80,118	80,118	0%	2	-	〃	-	〃	-	765,675	765,675
4	〃	Ma Cheng Co., Ltd.	〃	Yes	5,000	5,000	5,000	1.2%	2	-	〃	-	〃	-	765,675	765,675
4	〃	Great Wall Enterprise Co., Ltd.	〃	Yes	50,000	50,000	-	1.2%	2	-	〃	-	〃	-	765,675	765,675
5	Dachan Aquaculture Limited (DAL)	PT. Misaja Mitra (MM)	〃	Yes	51,313	49,801	49,801	0%	2	-	〃	-	〃	-	225,494	225,494

(Continued)

GREAT WALL ENTERPRISE CO., LTD. AND SUBSIDIARIES Notes to the Consolidated 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
5	Mei Lan Lei Co., Ltd.	PT. Mustika Minanusa Aurora (MMA)	Other receivables : related parties	Yes	14,266	13,845	13,845	0%	2	-	Business financing	-	None	-	225,494	225,494
6	Greatwall Northeast Asia Corporation (NAC)	Dachan Wanda (Tianjin) Co., Ltd.	〃	Yes	627,682	609,180	609,180	0%	2	-	〃	-	〃	-	3,478,044	3,478,044
6	〃	Dachan Wanda (Tianjin) Co., Ltd.	〃	Yes	218,491	217,860	217,860	0%	2	-	〃	-	〃	-	3,478,044	3,478,044
6	〃	Liaoning Great Wall Agri- Industrial Co., Ltd.	〃	Yes	349,586	348,576	348,576	0%	2	-	〃	-	〃	-	3,478,044	3,478,044
6	〃	Bengbu Dachan Food Co., Ltd.	〃	Yes	305,888	305,004	305,004	0%	2	-	〃	-	〃	-	3,478,044	3,478,044
7	Total Nutrition Tech. Co., Ltd.	Great Wall Enterprise Co., Ltd.	〃	Yes	240,000	240,000	240,000	1.2%	2	-	〃	-	〃	-	309,161	309,161
7	〃	Oriental Best Foods Co., Ltd.	〃	Yes	50,000	50,000	-	1.2%	2	-	〃	-	〃	-	309,161	309,161
8	Great Wall Feed Tech (Holdings) Ltd. (GWFT(BVI))	Great Wall FeedTech (Tianjin) Co., Ltd.	〃	Yes	28,531	-	-	0%	2	-	〃	-	〃	-	167,675	167,675
9	Taixu & Dachan Foods Co., Ltd.	Taixu & Dachan Foods (Bengbu) Co., Ltd.	〃	Yes	78,864	34,858	34,858	0%	2	-	〃	-	〃	-	180,396	180,396
10	Mei Lan Lei Co., Ltd.	Great Wall Enterprise Co., Ltd.	〃	Yes	100,000	100,000	-	1.2%	2	-	〃	-	〃	-	721,841	721,841
10	〃	Wonder Biotek Co., Ltd.	〃	Yes	20,000	20,000	3,500	1.2%	2	-	〃	-	〃	-	721,841	721,841
11	Neo Foods Co., Ltd.	Great Wall Enterprise Co., Ltd.	〃	Yes	15,000	15,000	15,000	1.2%	2	-	〃	-	〃	-	13,378	13,378
12	TNT Biotechnology Co., Ltd.	Great Wall International (Holdings) Ltd.	〃	Yes	24,251	23,537	23,537	0%	2	-	〃	-	〃	-	129,103	129,103
13	Wonder Biotek Co., Ltd.	Great Wall Enterprise Co., Ltd.	〃	Yes	25,000	-	-	1.2%	2	-	〃	-	〃	-	23,910	23,910
14	TNT Biotechnology (Tianjin) Co., Ltd.	Beijing Universal Chain Food Co., Ltd.	〃	Yes	5,280	-	-	0%	2	-	〃	-	〃	-	309,161	309,161
15	GREAT WALL GRAINS INTERNATIONAL LIMITED (GWGI)	Great Wall International (Holdings) Ltd.	〃	Yes	236,289	47,073	47,073	0%	2	-	〃	-	〃	-	52,922	52,922

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.

(Continued)

100

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

(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.	Great Wall Milling Co., Ltd.	5	7,586,667	342,372	332,280	249,653	-	% 4.38	15,173,334	Y
1	〃	Seafood Internation al Inc.	2	7,586,667	285,310	276,900	13,568	-	% 3.65	15,173,334	Y
1	〃	Great Wall Grains Internation al, Ltd.	2	7,586,667	1,401,665	1,384,500	-	-	% 18.25	15,173,334	Y
1	〃	Dachan Liangyou Food (Shanghai) Co., Ltd.	2	7,586,667	309,513	305,004	156,859	-	% 4.02	15,173,334		Y
3	Asia Nutrition Technologie s (VN) Co., Ltd.	ANT FEED CO., LTD.	6	370,751	85,593	-	-	-	% -	741,502
4	Liaoning Great Wall Agri- Industrial Co., Ltd.	Dachan Food (Hebei) Co., Ltd.	4	1,316,048	30,951	30,500	5,141	-	% 2.32	2,632,096		Y
5	Great Wall Agri (Hei Long Jiang) Co., Ltd	Dachan Wanda (Tianjin) Co., Ltd.	4	233,559	14,061	-	-	-	% -	467,118		Y
6	Dachan Food (Asia) Limited	Bengbu Dachan Food Co., Ltd.	4	4,158,816	1,966,421	1,960,740	-	-	% 47.15	8,317,632	Y	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, 2021 (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	Highest Percentage of ownership (%)
				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	2,443,588	9.64	2,443,588	% 9.64
	Ordinary shares: China Trade and Development Co.	-	〃	20,004	199	0.03	199	% 0.03
	Ordinary shares: Da Chiang International Co., Ltd.	Board of Directors	〃	7,889,655	56,615	3.94	56,615	% 3.94
	Ordinary shares: ZHONG ZHENG CO.,LTD.	-	〃	461,760	4,618	2.59	4,618	% 2.59
	Ordinary shares: Yo-Ho Beach Resort Co., Ltd.	-	〃	1,848,000	16,800	1.81	16,800	% 1.81
	Ordinary shares: Deyong Biological Technology Co., Ltd.	Board of Directors	〃	117,997	459	3.70	459	% 3.70

(Continued)

101

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

Name of holder	Category and name of security	Relationship with company	Account title	Ending balance	Ending balance	Ending balance	Ending balance	Highest Percentage of ownership (%)
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
Great Wall Enterprise Co., Ltd.	Ordinary shares: Yahsen Frozen Foods Co., Ltd.	-	Financial assets measured at fair value through other comprehensive profit or loss: non-current	40,425	-	0.08	-	% 0.08
	Ordinary shares: Hsin Tung Yang Co. Ltd.	-	〃	137,000	1,480	0.16	1,480	% 0.16
Huang-Ho Invest. Co., Ltd.	Great Wall Enterprise Co., Ltd.	Company	Treasury shares	20,264,416	121,687	2.38	1,082,120	% 2.38
	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	% 0.80
	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	389,593	1.54	389,593	% 0.86
City Chain Food Ltd.	Great Wall Enterprise Co., Ltd.	Company	Treasury shares	26,458,889	128,909	3.10	1,412,905	% 3.10
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	% 0.02
Route 66 Fast Food Ltd.	Beijing Hengfengtai Catering Management Co., Ltd	-	〃	-	6,643	9.09	6,643	% 9.09
Great Wall Food (Hong Kong) Co., Ltd.	Dynasty Club	-	〃	-	337	-	337	% -

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:

(In Thousands of New Taiwan Dollars)

Name of company	Category and name of security	Account name	Name of counter-party	Relationship with the company	Beginning Balance	Beginning Balance	Purchases	Purchases	Sales	Sales	Sales	Sales	Ending Balance	Ending Balance
					Shares	Amount	Shares	Amount	Shares	Price	Cost	Gain (loss) on disposal	Shares	Amount
Great Wall Enterprise Co., Ltd.	Non-listed stock	Investment using the equity method	Great Wall International (Holdings) Ltd.	Subsidiary	70,490,813	6,963,941	20,000,000	613,129	-	-	-	-	90,490,813	7,577,070
Great Wall International (Holdings) Ltd.	Non-listed stock	Investment using the equity method	Great Wall Northeast Asia Corporation (NAC)	Subsidiary	4,989,854	1,444,628	-	-	-	4,989,854	1,444,628	-	4,989,854	-
Great Wall Northeast Asia Corporation (NAC)	Non-listed stock	Investment using the equity method	Great Wall International (Holdings) Ltd.	Subsidiary	-	-	4,989,854	1,468,127	-	-	-	-	4,989,854	1,468,127

(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)

Name of company	Name of property	Transaction date	Transaction amount	Status of payment	Counter- party	Relationshi with the Company	If the counter-party is a related party, disclose the previous transfer information	If the counter-party is a related party, disclose the previous transfer information	If the counter-party is a related party, disclose the previous transfer information	If the counter-party is a related party, disclose the previous transfer information	References for determining price	Purpose of acquisition and current condition	Others
							p Owner	Relationshi p with the Company	Date of transfer	Amount
Great Wall Enterprise Co., Ltd.	Land	2021.11.5	680,600	Not complete	Chiayi County Government	Not applicable	Not applicable	Not applicable	Not applicable	Not applicable	Auction	To advance its food- processing abilities

Note: Information not found as the previous transaction transpired too long ago.

(vi) Disposal of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:None

(Continued)

102

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

(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	4,113,884	% 16	2 months	-	-	(451,987)	% (33)
Great Wall Enterprise Co., Ltd.	FoodChina Company	Associate / Subsidiary	Sale	1,283,252	% 4	Same as regular customers	-	-	332,363	% 8
Great Wall Enterprise Co., Ltd.	TTET Union Corporation	Other related party	Purchase	158,631	% 1	Same as regular customers	-	-	(9)	% -
Great Wall Enterprise Co., Ltd.	Total Nutrition Tech. Co., Ltd.	Subsidiary	Purchase	341,163	% 1	Same as regular customers	-	-	(34,053)	% (3)
Great Wall Enterprise Co., Ltd.	FoodChina Company	Associate / Subsidiary	Purchase	1,036,825	% 4	Same as regular customers	-	-	(92,059)	% (7)
Great Wall Enterprise Co., Ltd.	Mei Lan Lei Co., Ltd.	Subsidiary	Sale	1,893,867	% 6	2 months	-	-	-	% -
Great Wall Enterprise Co., Ltd.	Zhong Yi Food Co., Ltd.	Subsidiary	Sale	1,141,948	% 4	270 days	-	-	596,259	% 21
Great Wall Enterprise Co., Ltd.	Total Nutrition Tech. Co., Ltd.	Subsidiary	Sale	183,734	% 1	Same as regular customers	-	-	27,447	% 1
Mei Lan Lei Co., Ltd.	TTET Union Corporation	Other related party	Purchase (Outsourced)	281,360	% -	Same as regular customers	-	-	-	% -
Great Wall Enterprise Co., Ltd.	Great Wall Grains International, Ltd.	Subsidiary	Purchase	687,095	% -	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	332,363 (Note)	% 3.93	-		332,263	-
Great Wall Enterprise Co., Ltd.	Zhong Yi Food Co., Ltd.	Subsidiary	596,259 (Note)	% 15.59	-		22,341	-
Mei Lan Lei Co., Ltd.	Great Wall Enterprise Co., Ltd.	Subsidiary	451,987 (Note)	% 8.72	-		(451,987)	-

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, 2021.

(In Thousands of New Taiwan Dollars)

No.	Name of company	Name of counter-party	Nature of relationship	Intercompany transactions	Intercompany transactions	Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0	Great Wall Enterprise Co., Ltd.	Mei Lan Lei Co., Ltd.	1	Sales revenue	1,893,867	Adjusted according to market price and company policies	2%
0	〃	〃	1	Cost of sales	4,113,884		5%
0	〃	〃	1	Trades’ current account receivable	161,397		-%
0	〃	〃	1	Other receivables	1,029		-%
0	〃	〃	1	Accounts payable	169,397		-%

(Continued)

103

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

No.	Name of company	Name of counter-party	Nature of relationship	Intercompany transactions	Intercompany transactions	Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0	Great Wall Enterprise Co., Ltd.	Mei Lan Lei Co., Ltd.	1	Notes payable	282,590		-%
0	〃	〃	1	Rental income	11,456		-%
0	〃	〃	1	Finance income	2,262		-%
0	〃	Food China Global Co., Ltd.	1	Sales revenue	1,283,252		1%
0	〃	〃	1	Cost of sales	1,036,825		1%
0	〃	〃	1	Accounts receivable	332,363		-%
0	〃	〃	1	Accounts payable	92,059		-%
0	〃	〃	1	Rental income	1,063		-%
0	〃	〃	1	Other income	2,131		-%
0	〃	〃	1	Other receivables	57	Same as regular trading terms	-%
0	〃	City Chain Food Ltd.	1	Sales revenue	7,429	Same as regular trading terms	-%
0	〃	〃	1	Accounts receivable	1,377		-%
0	〃	〃	1	Other income	77		-%
0	〃	〃	1	Rental income	2,555		-%
0	〃	KouChan Mill Co., Ltd.	1	Cost of sales	26,291	Same as regular trading terms	-%
0	〃	〃	1	Accounts payable	4,460		-%
0	〃	〃	1	Service income	7,407		-%
0	〃	Total Nutrition Tech. Co., Ltd.	1	Finance expense	1,616		-%
0	〃	〃	1	Sales revenue	341,163	Same as regular trading terms	-%
0	〃	〃	1	Cost of sales	183,734	3,000/metric ton on top of the cost	-%
0	〃	〃	1	Accounts receivable	27,447		-%
0	〃	〃	1	Trades’ current account payable	240,000		-%
0	〃	Total Nutrition Tech. Co., Ltd.	1	Rental income	8,360		-%
0	〃	〃	1	Other receivables	764		-%
0	〃	〃	1	Other income	1,016		-%
0	〃	〃	1	Accounts payable	34,010		-%
0	〃	〃	1	Notes payable	45		-%
0	〃	An Hsin Chiao Chu Co., Ltd.	1	Sales revenue	14,554	Same as regular trading terms	-%
0	〃	〃	1	Cost of sales	809		-%
0	〃	〃	1	Accounts receivable	2,959		-%
0	〃	〃	1	Other income	231		-%
0	〃	〃	1	Rental income	131		-%
0	〃	〃	1	Other payables	14	Same as regular trading terms	-%
0	〃	Zhong Yi Food Co., Ltd.	1	Sales revenue	1,141,948	Same as regular trading terms	1%
0	〃	〃	1	Cost of sales	5,508	Same as regular trading terms	-%
0	〃	〃	1	Accounts payable	182		-%
0	〃	〃	1	Accounts receivable	596,259		1%
0	〃	〃	1	Other income	5,289		-%
0	〃	Oriental Best Foods Co., Ltd.	1	Sales revenue	49,991	Same as regular trading terms	-%
0	〃	〃	1	Cost of sales	10,205		-%
0	〃	〃	1	Trades’ current account receivable	56,000		-%
0	〃	〃	1	Accounts receivable	4,081		-%
0	〃	〃	1	Other receivables	57		-%
0	〃	〃	1	Finance income	612		-%
0	〃	〃	1	Service income	2,655		-%
0	〃	〃	1	Accounts payable	1,593		-%
0	〃	〃	1	Other payables	109		-%
0	〃	Saboten Co., Ltd.	1	Sales revenue	5,487	Same as regular trading terms	-%
0	〃	〃	1	Other payables	25		-%
0	〃	〃	1	Accounts receivable	425		-%
0	〃	〃	1	Rental income	42		-%

(Continued)

104

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

No.	Name of company	Name of counter-party	Nature of relationship	Intercompany transactions	Intercompany transactions	Intercompany transactions	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
0	Great Wall Enterprise Co., Ltd.	Honolulu Chain Food & Beverage Co., Ltd.	1	Sales revenue	215	Same as regular trading terms	-%
0	〃	〃	1	Accounts receivable	57		-%
0	〃	〃	1	Rental income	84		-%
0	〃	Wonder Biotek Co., Ltd.	1	Rental income	23		-%
0	〃	〃	1	Accounts receivable	17		-%
0	〃	〃	1	Accounts payable	1,431		-%
0	〃	〃	1	Other income	44		-%
0	〃	Neo Foods Co., Ltd.	1	Rental income	23		-%
0	〃	〃	1	Accounts receivable	11		-%
0	〃	〃	1	Trades’ current account payable	15,000		-%
0	〃	〃	1	Finance expense	180		-%
0	〃	〃	1	Other income	125		-%
0	〃	GREAT WALL GRAINS INTERNATIONAL	1	Cost of sales	687,095		-%
0	〃	Great Wall International (Holdings) co., Ltd.	1	Trades’ current account receivable	278,140		-%

Note 1: Numbers are classified as follows: 1. Parent company: 0

Subsidiaries are numbered in numerical order from 1.

Note 2: Nature of relationship is classified as follows: 1. Parent company to its subsidiaries. 2. Subsidiary to its parent company.

Subsidiary to subsidiary.

Note 3: Transactions between the parent company and its subsidiaries have been written off.

(b) Information on investees:

The following is the information on investees for the years ended December 31, 2021 (excluding information on investees in Mainland China):

(In USD/HKD)

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of December 31, 2021	Balance as of December 31, 2021	Balance as of December 31, 2021	Highest Percentage of wnership	Net income (losses) of investee	Share of profits/losses of investee
				December 31, 2021	December 31, 2020	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	768,311	% 100.00	67,594	67,594
	Huang-Ho Invest. Co., Ltd.	〃	Investments	314,395	249,395	14,500,000	% 100.00	408,377	% 100.00	12,922	12,922
	Great Wall International (Holdings) Ltd.	Hong Kong	Holdings	2,678,728	2,122,110	90,490,813	% 100.00	7,577,070	% 100.00	81,914	81,914
	City Chain Food Ltd.	Taiwan	Fast Food Restaurants	856,496	856,496	167,823,438	% 100.00	487,575	% 100.00	(23,989)	(23,989)
	Mei Lan Lei Co., Ltd.	〃	Production, sale, and research of feed	120,010	120,010	48,000,000	% 100.00	1,809,231	% 100.00	52,563	52,563
	KouChan Mill Co., Ltd.	〃	Flour production and sales	373,799	373,799	33,550,000	% 55.00	491,326	% 55.00	53,268	29,297
	Oriental Best Foods Co., Ltd.	〃	Food processing and sale	161,405	141,405	80,067	% 100.00	214,702	% 90.00	13,997	12,773
	An Hsin Chiao Chu Co., Ltd.	〃	Sale of fresh meat	55,000	55,000	5,500,000	% 100.00	6,043	% 100.00	(4,429)	(4,429)
	Neo Foods Co., Ltd.	〃	Food manufacturing and sale	50,000	50,000	5,000,000	% 100.00	33,444	% -	(15,259)	(15,259)
	Great Wall FeedTech Enterprise Co., Ltd.	〃	Production, sale, and research of feed	37,274	37,274	340,000	% 100.00	5,507	% 100.00	(340)	(340)
	Wonder Biotek Co., Ltd.	〃	Medicine production and sales	200,000	150,000	20,000,000	% 100.00	59,776	% 100.00	(41,170)	(41,170)
	Zhong Yi Food Co., Ltd.	〃	Egg production and sale	780,000	780,000	78,000,000	% 65.00	692,534	% 100.00	(83,598)	(54,339)
	San Inn Abattoir Co.	〃	Abattoir	66,469	66,469	1,116,000	% 40.00	71,051	% -	11,454	4,582
City Chain Food Ltd.	Nisshi Chain Co., Ltd.	〃	Bakery	68,459	68,459	4,364,652	% 67.29	9,209	% 67.29	(1,458)	(981)
	Saboten Co., Ltd.	〃	Japanese restaurants	39,000	39,000	2,000,000	% 50.00	57,248	% 50.00	11,142	5,571
	Route 66 Fast Food Ltd.	Hong Kong	Investment holdings	USD 31,555,384	USD 29,668,603	28,404,247	% 100.00	191,356	% 100.00	3,553	3,553
	Saboten (China) Limited	〃	Investment holdings	USD 1,250,000	USD 1,250,000	1,550,000	% 50.00	64,461	% 50.00	43,376	21,688
City Chain Food Ltd.	DaChan Shin Yeh Ltd.	〃	Chinese and western fast food	USD 700,000	USD 700,000	700,000	% 40.00	17,106	% 40.00	(2,274)	(910)
	Honolulu Chain Food & Beverage Co., Ltd.	Taiwan	Chinese and western fast food	11,000	11,000	11,000,000	% 55.00	982	% 55.00	(15,109)	(8,310)
	Xiang Cheng Co., Ltd.	〃	Chinese food and dining	5,000	5,000	500,000	% 50.00	3,926	% 50.00	(617)	(309)
	Ma Cheng Co., Ltd.	〃	Western food and dining	18,000	18,000	1,800,000	% 90.00	(631)	% 90.00	(2,951)	(2,656)
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	322,759	% 100.00	6,877	6,877

(Continued)

105

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

Name of investor	Name of investee	Location	Main businesses and products	Original investment amount	Original investment amount	Balance as of December 31, 2021	Balance as of December 31, 2021	Balance as of December 31, 2021	Highest Percentage of wnership	Net income (losses) of investee	Share of profits/losses of investee
				December 31, 2021	December 31, 2020	Shares (thousands)	Percentage of wnership	Carrying value
Great Wall International (Holdings) Ltd.	Asia Nutrition Technologies Corporation Co., Ltd.	Hong Kong	Investment holdings	USD 7,391,940	USD 7,391,940	6,690,472	% 100.00	1,298,793	% 100.00	92,360	92,360
	Greatwall Food Investment (H.K.) Co., Ltd.	〃	Investment holdings	USD 62,500,000	USD 62,500,000	5,422,000	% 100.00	(1,532)	% -	(180)	(180)
	Greatwall Food (H.K.) Co., Ltd.	〃	Food wholesale	USD 500,000	USD 500,000	50,000	% 100.00	(15,741)	% 100.00	(2,461)	(2,461)
	FoodChina Inc.	〃	Investment holdings	USD 9,499,532	USD 5,070,000	32,730,000	% 88.70	376,784	% 88.70	69,938	62,035
	Seafood International Inc.	〃	Investment holdings	USD 4,183,974	USD 4,183,974	3,744,000	% 100.00	103,605	% 100.00	(5,738)	(5,738)
	Tianjin Food Invest Co.,Ltd	〃	Investment holdings	USD 9,729,433	USD 9,729,433	9,500,000	% 78.40	828,913	% 78.40	(56,881)	(44,595)
	Waverley Star Ltd.	〃	Investment holdings	USD 29,160,858	USD 29,160,858	29,160,858	% 100.00	3,209,440	% 100.00	246,517	246,517
	Golden Harvest Inc.	〃	Investment holdings	USD -	USD 1	1	% 100.00	-	% 100.00	-	-
	Great Wall FeedTech (Holdings) Ltd.	〃	Investment holdings	USD 10,630,000	USD 10,630,000	8,260,000	% 100.00	419,188	% 100.00	13,678	13,678
	Clydebridge Ltd.	〃	Investment holdings	USD 3,544,000	USD 3,544,000	3,544,000	% 94.66	320,517	% 94.66	107,114	101,394
	Global Food Corp.	〃	Aquaculture trading	USD -	USD 1	-	% 100.00	-	% 100.00	-	-
	Gallant Dachan Seafood Co., Ltd.	Vietnam	Aquaculture processing and sales	USD 2,500,000	USD 2,500,000	2,500,000	% 50.00	104,528	% 50.00	(5,435)	(2,718)
	Dachan (Asia-Pacific) Limited	Hong Kong	Investment holdings	USD 11,200,000	USD 11,200,000	11,200,000	% 75.17	131,041	% 75.17	(109,469)	(82,288)
	Fresh Aqua Corporation	〃	Aquaculture trading	USD 1	USD 1	1	% 100.00	-	% 100.00	-	-
	Fresh Aqua Corporation	〃	Aquaculture trading	USD 1,282	USD 1,282	1,282	% 100.00	46,993	% 100.00	44,923	44,923
	Fresh Aqua Limited	〃	Aquaculture trading	USD 1,000,000	USD 1,000,000	1,000,000	% 100.00	132,306	% 100.00	105,991	105,991
	Great Wall Grains International Limited	〃	Commodity trading	USD 1,282	USD 1,282	1,282	% 100.00	34,754	% 100.00	34,222	34,222
	Global Seafood Limited	〃	Aquaculture trading	USD 1,282	USD 1,282	1,282	% 100.00	6,315	% 100.00	8,048	8,048
	Pacific Harvest Limited	〃	Aquaculture trading	USD 1,282	USD 1,282	1,282	% 100.00	23,694	% 100.00	22,281	22,281
	Seafood International Limited	〃	Aquaculture trading	USD 1,282	USD 1,282	1,282	% 100.00	30,176	% 100.00	27,758	27,758
	Universal Food Limited	〃	Aquaculture trading	USD 10,494,097	USD 10,494,097	10,494,097	% 51.00	-	% 51.00	(464,367)	(236,827)
	Myint Dachan Company Limited	Myanmar	Production and sale of feed	USD 52,355,513	USD -	4,988,973	% 65.51	1,304,733	% 65.51	201,140	131,767
	ANTIC(VN)	Vietnam	Sale of chicken	USD 2,887,240	USD -	1	% 100.00	163,394	% 100.00	9,706	9,706
	Marksville	Malaysia	Production and sale of feed	USD 29,160,858	USD 29,160,858	375,899,946	% 36.99	3,212,900	% 36.99	666,779	246,641
Waverly Star Ltd.	Dachan Food (Asia) Limited	〃	Investment holdings	USD 5,759,421	USD 5,759,421	152,924,906	% 15.05	1,037,222	% 15.05	666,779	100,350
Asia Nutrition Technologies Corporation	Dachan Food (Asia) Limited	〃	Investment holdings	USD 800,000	USD 800,000	800,000	% 5.37	9,361	% 6.67	(109,469)	(5,878)
Dachan Food (Asia)	Dachan (Asia-Pacific) Limited	〃	Investment holdings	USD 300,000	USD 300,000	400,000	% 1.08	8,304	% 1.08	69,938	-
	Food China Inc.	〃	Investment holdings	USD 900,000	USD 900,000	900,000	% 30.00	24,912	% 30.00	-	-
	Taiwan International Gene Co., Ltd.	Vietnam	Sale of boars for breeding purposes	USD 3,713,685	USD 3,713,685	3,730,000	% 79.03	(22,993)	% 79.03	(101)	(80)
Route 66 Fast Food Ltd.	Yung Huo (China) Co., Ltd.	Hong Kong	Investment holdings	USD 53,000	USD 53,000	400,000	% 1.08	5,061	% 1.08	69,938	1,218
	FoodChina Inc.	〃	Investment holdings	USD 1,385,160	USD 1,385,160	1,110,000	% 100.00	32,669	% 100.00	(220)	(220)

(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, 2020	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of December 31, 2021	Net income (losses) of the investee	Percentage of ownership	Highest 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	USD 8,278	( 2 )	53,136	-	-	53,136	(6,511)	78.40%	78.40%	(5,105)	919,835	-
Miyasun-Great Wall Foods (Dalian) Co., Ltd.	Production and sale of processed chicken products	USD 9,872	( 2 )	-	-	-	-	12,658	52.04%	52.04%	6,587	148,768	-
Great Wall Foods (Dalian) Co., Ltd.	Production and sale of chicken and feed	USD 26,600	( 2 )	315,908	-	-	315,908	54,959	30.70%	30.70%	16,872	688,781	-
Liaoning Great Wall Agri- Industrial Co., Ltd.	Production and sale of feed	USD 19,201	( 2 )	229,600	-	-	229,600	142,661	52.04%	52.04%	74,241	684,871	-
Great Wall Agri (Hei Long Jiang) Co., Ltd.	Production and sale of feed	USD 6,563	( 2 )	-	-	-	-	3,174	52.04%	52.04%	1,652	243,088	-
Great Wall Agri (Yingkou) Co., Ltd.	Production and sale of feed	USD 17,886	( 2 )	57,813	-	-	57,813	5,759	52.04%	52.04%	2,997	38,869	-

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

Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2020	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of December 31, 2021	Net income (losses) of the investee	Percentage of ownership	Highest percentage of ownership	Investment income (losses)	Book value	Accumu-lated remittance of earnings in currentperiod
					Outflow	Inflow
Great Wall Agri (Tieling) Co., Ltd.	Production and sale of chicken and feed	USD 14,151	( 2 )	84,655	-	-	84,655	(68,332)	52.04%	52.04%	(32,958)	614,797	-
Dachan Wanda (Tianjin) Co., Ltd.	Production and sale of chicken and feed	RMB 579,060	( 2 )	-	-	-	-	113,248	52.04%	52.04%	58,934	712,202	-
Dongbei (Beijing) Consultant Co., Ltd.	Management consulting services	USD 500	( 2 )	-	-	-	-	(2,450)	52.04%	52.04%	(1,275)	(8,834)	-
Beijing FoodChina Online Information & Technology Ltd.	Feed trading, animal products wholesale, and feed and agricultural products retail	RMB 59,874	( 2 )	-	-	-	-	1,079	55.03%	55.03%	669	14,815	-
Dongbei Agri (Changchun) Co., Ltd.	Production and sale of feed	USD 1,111	( 2 )	19,483	-	-	19,483	10,956	52.04%	52.04%	5,702	102,056	-
Great Wall Agri (Henan) Co., Ltd.	Production and sale of feed	USD 1,900	( 2 )	-	-	-	-	12,813	52.04%	52.04%	6,668	10,329	-
Great Wall Gourmet(Shangh ai) Co., Ltd.	Production and sale of chicken, pork, and frozen processed foods	USD 6,940	( 2 )	82,000	-	-	82,000	(27,033)	52.04%	52.04%	(14,068)	70,123	-
DaChan Showa Foods (Tianjin) Co., Ltd.	Production and sale of flour related products	USD 8,950	( 2 )	26,158	-	-	26,158	33,380	55.00%	55.00%	18,359	183,281	-
Dachan (Hunan) Feed Technologies Co., Ltd.	Production and sale of feed	USD 2,234	( 2 )	-	-	-	-	2,761	52.04%	52.04%	1,437	28,756	-
Dachan Food (Hebei) Co., Ltd.	Production and sale of feed	USD 53,767	( 2 )	-	-	-	-	30,797	52.04%	52.04%	16,027	40,479	-
Dachan Food (Panjin) Co., Ltd.	Production and sale of chicken	USD -	( 2 )	-	-	-	-	(1,480)	52.04%	52.04%	(770)	-	-
Dachan Liangyou Food (Shanghai) Co., Ltd.	Production and sale of flour related products	RMB 200,000	( 2 )	-	-	-	-	40,191	43.00%	43.00%	17,282	273,235	-
Great Wall Agrotech Huludao Co., Ltd.	Production and sale of feed	USD 3,800	( 2 )	-	-	-	-	128	52.04%	52.04%	66	50,563	-
Great Wall FeedTech (Tianjin) Co., Ltd.	Production and sale of feed	USD 14,536	( 2 )	-	-	-	-	22,661	100.00%	100.00%	22,661	623,027	-
Shanghai Universal Chain Food Co., Ltd.	Italian food and dining, bakery, and restaurant management services	USD 3,100	( 2 )	101,680	-	-	101,680	(2,864)	100.00%	100.00%	(2,864)	161,135	-
Great Wall Yung Huo Food (Beijing) Co., Ltd.	Chinese fast food chains	RMB 15,954	( 2 )	44,647	-	-	44,647	(47)	79.03%	79.03%	(36)	(14,268)	-
Nanjing Tengcheng Enterprise Management Co., Ltd	Restaurant management	RMB 21,006	( 2 )	37,902	-	-	37,902	7,774	100.00%	100.00%	7,774	69,500	-
Beijing Universal Chain Food Co., Ltd.	Italian food and dining and bakery	USD 5,580	( 2 )	115,697	-	-	115,697	9,011	100.00%	100.00%	9,011	66,187	-
Saboten Catering Operation (Beijing) Co., Ltd.	Japanese food and dining and restaurant management services	USD 2,500	( 2 )	46,938	-	-	46,938	46,620	50.00%	50.00%	23,310	64,245	72,018
Shanghai Xunshi Foods Co., Ltd.	Chinese fast food chains	USD 278	( 2 )	-	-	-	-	-	100.00%	100.00%	-	(8,085)	-
Beijing Dingfenggang Catering Co.,Ltd.	Chinese fast food chains	RMB 3,000	( 2 )	29,641	-	-	29,641	(1,585)	55.00%	55.00%	(872)	15,657	-
Beijing Duhsiaoyueh Restaurant Co.,Ltd	Chinese fast food chains	RMB 19,000	( 2 )	51,707	-	-	51,707	(1,373)	70.00%	70.00%	(961)	2,440	-
Tianjin Fast Food Co.,Ltd	Food processing	USD 5,800	( 2 )	175,676	-	-	175,676	1,196	100.00%	100.00%	1,196	(38,995)	-
TNT Biotechnology (Tianjin) Co., Ltd.	Feed	USD 11,602	( 2 )	303,344	-	-	303,344	8,261	100.00%	100.00%	8,261	286,909	-

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

Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2020	Investment flows	Investment flows	Accumulated outflow of investment from Taiwan as of December 31, 2021	Net income (losses) of the investee	Percentage of ownership	Highest percentage of ownership	Investment income (losses)	Book value	Accumu-lated remittance of earnings in currentperiod
					Outflow	Inflow
Shanghai All- Household Restaurant Management Co., Ltd	Chinese and western fast food chains	RMB 10,000	( 2 )	-	-	-	-	(5,318)	50.00%	50.00%	(2,659)	23,392	-
Taixu & DaChan Foods (Dalian) Co.,Ltd.	Production and sale of pork	USD 21,595	( 2 )	-	-	-	-	16,608	20.82%	20.82%	3,458	60,080	-
Shangdong Dachan Biotechnology Co., Ltd.	Production and sale of feed	USD 3,000	( 2 )	-	-	-	-	21,877	52.04%	52.04%	11,385	(36,153)	-
Tai Ji Food Co., Ltd.	Processing and sale of food	USD 4,150	( 2 )	48,993	-	-	48,993	(4,830)	100.00%	100.00%	(4,830)	(77,881)	-
Advent Prosperity Real Estate Development Co. Ltd	Real Estate	RMB 435,500	( 2 )	-	-	-	-	(10,464)	32.64%	32.64%	(6,886)	1,109,975	-
Dachan Shinyeh Catering Management (Beijing) Co., Ltd.	Chinese and western fast food chains	USD 1,670	( 2 )	20,792	-	-	20,792	(2,187)	40.00%	40.00%	(875)	10,110	-
Shanghai Guangcheng Catering Co., Ltd	Chinese food and dining	RMB 4,884	( 2 )	-	-	-	-	(1,570)	20.68%	20.68%	(325)	86,710	-
Hepeer Catering Management (Beijing) Co., Ltd.	Chinese food and dining	RMB 6,000	( 2 )	-	-	-	-	1,352	20.00%	20.00%	270	2,869	-
TianJin Hai Rei Food Limited	Food processing	RMB 4,994	( 2 )	-	-	-	-	2,700	20.82%	20.82%	558	2,768	-
Rupp & DaChan Foods (Tianjin) Co., Ltd.	Feed research	RMB 35,000	( 2 )	-	-	-	-	(27,408)	20.82%	20.82%	(5,668)	48,065	-

(ii) Limitation on investment in Mainland China:

(In USD)

			(In USD)
	Accumulated Investment in Mainland China as of December 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
	(USD 69,123,291 ) 1,913,333	(USD 240,735,856 ) 6,663,568	12,061,052

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

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

(d) Major shareholders:

Major shareholders:
Shareholding Shareholder’s Name	Shares	Percentage
Fu-Chu Investment Co., Ltd.	73,219,551	% 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.

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

(14) Segment information:

The Group has six reportable segments as follow. The reportable segments are the Group’ s strategic divisions. They offer different products and services, and are managed separately because they require different technology and marketing strategies. The chief operating decision maker of the Group reviews the internal management reports of each strategic operating unit at least quarterly.

(a) Grain Segment: Vertically integrated production and sales of feed, flour, fermented soybean meal, pork, and laying hens.
(b) Meat Segment: Vertically integrated production and sales of white broilers, native chickens, and ducks in Taiwan.
(c) Food segment: Department of manufacturing and sales of processed food.
(d) Catering and shopping malls segment: Department of catering services and shopping mall operations.
(e) Southeast Asia Segment: Production and sales of aquatic products and feed in Southeast Asia.
(f) East Asia Segment: A listed entity listed based in Hong Kong.

Other operating activities include investments in various industries and management consulting services. These departments did not meet any quantitative thresholds to be reportable segments in 2021 and 2020.

The Group’s operating segment information and reconciliation are as follows:

Revenue from external customers Intersegment revenues Interest revenue Total revenue Interest expenses Depreciation and amortization Share of profit (loss) of associates and joint ventures accounted for using equity method Reportable segment profit before tax					For the years	ended Decemb	er 31, 2021
			Meat Segment 12,557,486 1,525,887 83 14,083,456 (18,221) (109,860) - 477,133	Food Segment 3,368,409 736,072 27 4,104,508 (3,038) (42,974) - (1,781)	Catering and shopping malls Segment 1,988,970 7,275 1,503 1,997,748 (6,049) (233,481) - (18,629)	Southeast Asia Segment 2,639,616 - - 2,639,616 - (632,468) - (319,285)	East Asia Segment 40,593,953 41,443 - 40,635,396 - (4,673) - 781,905	Other Segment 103,462 - 101 103,563 (111) (245,803) - 436,891	Reconciliati on and elimination - (11,422,298) (5,289) (11,427,587) 6,787 - 6,186 (151,108)	Total
										101,437,842 - 86,153 101,523,995 (284,623) (1,933,014) 6,186 2,886,718

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

			For the years	ended Decemb	er 31, 2020
Grain Segement $ 22,196,146 7,917,692 4,264 $ 30,118,102 $ (32,165) (198,930) - $ 2,124,887	Meat Segment 11,953,589 100,156 1,870 12,055,615 (16,014) - - 833,327	Food Segment 3,013,611 36,953 386 3,050,950 (5,913) (31,266) - 136,766	Catering and shopping malls Segment 1,989,707 11,360 3,212 2,004,279 (8,961) (348,746) - (47,296)	Southeast Asia Segment 2,739,287 - - 2,739,287 - (66,277) - 104,293	East Asia Segment 39,735,252 35,276 - 39,770,528 - (623,431) - 1,598,070	Other Segment 23,300 - 16,506 39,806 (228,342) (622,777) - 392,816	Reconciliati on and elimination - (8,101,437) (9,680) (8,111,117) 11,768 - 16,035 (159,375)	Total
								81,650,892 - 16,558
								81,667,450
								(279,627) (1,891,427) 16,035
								4,983,488

(a) The material reconciling items of the above reportable segment are as below:

Name of product Feed Grain and Oil Meat Consumables Other Total	For the years ended December 31,	For the years ended December 31,
	2021 $ 45,740,161 19,209,672 17,494,966 14,585,128 4,407,915 $ 101,437,842	2020
		38,103,939 9,253,041 17,989,965 12,966,872 3,337,075
		81,650,892

(b) Geographic information

In presenting information on the basis of geography, segment revenue is based on the geographical location of customers and segment assets are based on the geographical location of the assets.

Revenue from external customers:

Geographical region Taiwan China Vietnam Other (all <10%) Total operating income	For the years ended December 31,	For the years ended December 31,
	2021 $ 42,224,609 35,461,422 17,549,490 6,202,321 $ 101,437,842	2020
		37,036,701 26,275,016 14,361,398 3,977,777
		81,650,892

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

Non-current assets:

Geographical region	For the years ended December 31,	For the years ended December 31,
	2021 $ 15,207,172 6,874,502 1,565,100 685,567 $ 24,332,341	2020
Taiwan China Vietnam Other (all <10%) Total non-current assets		13,879,934 6,242,039 1,111,316 1,529,096
		22,762,385

Non-current assets include property, plant and equipment, investment property, intangible assets, and other assets, not including financial instruments, deferred tax assets, pension fund assets, and rights arising from an insurance contract (non-current).

(c) Major customers

The Group did not have customers whose revenue accounted for more than 10% of the revenue stated in the income statement in 2021 and 2020.

AI assistant

GREATWALL — Annual Report 2021

51744_rns_2021-11-08_5252a29e-80a0-40d7-b4bb-0a10d61c9fe2.pdf

GREAT WALL ENTERPRISE CO., LTD. AND SUBSIDIARIES

Consolidated Financial Statements

Table of contents

Representation Letter

KPMG

Independent Auditors’ Report

Opinion

Basis for Opinion

Key Audit Matters

Other Matter

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

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Notes to Readers

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

Consolidated Balance Sheets

December 31, 2021 and 2020

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

Consolidated Statements of Comprehensive Income

For the years ended December 31, 2021 and 2020

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

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

Consolidated Statements of Changes in Equity

For the years ended December 31, 2021 and 2020

Consolidated Statements of Cash Flows

For the years ended December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

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

Consolidated Statements of Cash Flows

For the years ended December 31, 2021 and 2020

Notes to the Consolidated Financial Statements

For the years ended December 31, 2021 and 2020

(1) Company history

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

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

(3) New standards, amendments and interpretations adopted:

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

(4) Summary of significant accounting policies:

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

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

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

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

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

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

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

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

(d) Foreign currencies

(ii) Foreign operations

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

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

(g) Financial instruments

(i) Financial assets

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

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

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

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

7) Derecognition of financial assets

2) Equity instrument

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

3) Treasury shares

4) Financial liabilities

5) Derecognition of financial liabilities

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

(h) Inventories

(i) Biological assets

(j) Investment in associates

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

(k) Investment property

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

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

(m) Leases

(ii) As a lessee

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

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

(n) Intangible assets

(o) Impairment of non financial assets

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

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

GREATWALL Annual Report 2021