HG — Annual Report 2021

Nov 11, 2021

Holiday Garden International Ltd.

Parent Company Only financial Report and Independent

Accountant’s Report

2021 and 2020 (Stock code: 2702)

Address: Rm.B, 23F., No.6, Sihwei 3rd Rd., Lingya Dist., Kaohsiung City Phone: (07) 241-0123

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.

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Holiday Garden International Ltd. and Subsidiaries

Parent Company Only Financial Report and Independent Accountant's Report of 2021 and 2020

Table of Contents

Item 1. Cover 2. Table of contents 3. Independent accountant’s report 4. Independent company only balance sheets 5. Independent company only statements of comprehensive income 6. Independent company only statements of changes in equity 7. Independent company only statements of cash flows 8. Notes of Independent company only financial statements (1) Company milestones and scope of business (2) Date and procedure of approval of the financial report (3) Applicability of newly issued and revised standards and interpretations (4) Summary of significant accounting policies (5) Critical accounting judgments, estimates and key sources of assumption uncertainty (6) Details of significant accounts (7) Transactions with related parties (8) Collateralized assets (9) Significant contingent liabilities and unrecognized contractual commitments (10) Significant casualty losses

Page/No./Index

1 2 ~ 3 4 ~ 9 10 ~ 11 12~13 14 15 ~ 16 17 ~ 60 17 17 17 ~ 19 19 ~ 28 28 ~ 29 29 ~ 50 50 ~ 51 51 52 52

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Item

Page/No./Index

(11) Major events after the reporting period		52
(12) Other	52	~ 59
(13) Additional disclosure	59	~ 60
(14) Segment information		60
*Load Funds (Table 1)	61
*Properties disposed of at costs or prices of at least
NT$300 million or 20% of the paid-in capital (Table 2、
3)	62~63
*Receivable from related parties amounts to at least
NT$100 million or 20% of the paid-in capital (Table 4)	64
*Business relations and material transactions and amounts between the parent
company and its subsidiaries and among the subsidiaries (Table 5)	65~66
*The investee's name, location, and other related
information (excluding investees in mainland China)
(Table 6)	67
*Major Shareholder Information (Table 7)	68
*Statement of Cash and Cash Equivalents ( List 1)	69
*Financial Assets at Amortised Cost - Current Statement( List 2)	70
*Statement of Changes in Investments Using the Equity Method( List 3)	71
*Short-term loan schedule( List 4)	72
*Schedule of Short Term Notes Payable( List 5)	73
*Long-term loan details( List 6)	74
*Operating Cost Schedule( List 7)	75
*Operating Expenses Schedule( List 8)	76
*Summary of employee benefits, depreciation, and
amortization expenses incurred in the current period by
function (List 9)	77

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Independent Accountant’s Report (2022.) Tsai Shen Pao Tzu No. 21004726

Holiday Garden International Ltd ：

Opinion

We have audited the following financial statements of Holiday Garden International Ltd.: The parent company only balance sheets of December 31, 2021and 2020, the parent company only statements of comprehensive income of January 1 to December 31 of 2021 and 2020, the parent company only statements of changes in equity, the parent company only statements of cash flows, and the notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material aspects, the financial position of Holiday Garden International Ltd. as at December 31, 2021 and 2020 and its financial performance and cash flows for the period from January 1 to December 31 of 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

Basis for opinion

We conducted the audit in accordance with the Rules Governing Auditing and Certification of Financial Statements by Certified Public Accountants and the generally accepted auditing standards in the Republic of China. Our responsibilities under those rules and standards are described in the section of the responsibilities of accountants auditing parent company only financial statements. Personnel of our accounting firm subject to the independent requirements have complied with the code of professional ethics of certified public accountants of the Republic of China, stayed fully independent of Holiday Garden Hotel Co., Ltd, and fulfilled other responsibilities in accordance with the code. We believe that we have obtained adequate and appropriate audit evidence to form the basis of our audit opinion.

Key audit matters

Key audit matters refer to the most significant matters, according to our professional judgment, in the 2021 parent company only financial statements of Holiday Garden International Ltd. These matters were addressed during the audit of the overall parent company

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only financial statements and in the formation of our opinion. We do not express our opinion on these matters separately.

We determine the following key audit matters of the parent company only financial statements of 2021 of the Holiday Garden International Ltd.:

Evaluation of investment impairment accounted for using the equity method ：

Investment which adopting to Equity method — Business Mergers and
Acquisitions

Description

Adopted to Equity method of accounting policy, please refer to parent company financial report note4(12). Descriptions of investment which adopting to equity method of accounting policy, please refer to parent company financial report note6(4). Subsidiaries of Holiday Garden International Ltd. Acquired SpringHill Suites by Marriott San Jose Fremont with 1,156,684,000 NTD on December 09, 2021 which adopting accounting policy. Due to the significant estimation of management and purchase price allocation, the mergers and acquisition amount is material of this year, we recognized the mergers and acquisitions of subsidiary as one of major audit program of this year .

Corresponding audit program

1. Understand and evaluate the internal control procedures of Holiday Garden Hotel Co., Ltd. and its subsidiaries' investment transactions, and review the relevant documents of the board of directors to confirm that the investment project has been implemented in accordance with the relevant procedures

2. Review the M&A transaction contract and check the payment voucher to confirm the acquisition consideration.

1. Obtain the price apportionment report of the M&A case, assess the independence of external experts, review the data used in the report, and evaluate the valuation methods and important assumptions used in the report to evaluate the reasonableness of the purchase price apportionment.

Adopting to Equity method “I mpairment evaluation of investment”

Description

For accounting policies on investments accounted for using the equity method, please refer to Note 4(12) of the parent company only financial statements. For accounting estimation and

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assumption uncertainty of evaluation of investment impairment accounted for using the equity method, please refer to Note 5(2) of the parent company only financial statements. For investment using the equity method, please refer to Note 6(4) of the parent company only financial statements.

As of December 31, 2021, the property, plant and equipment and intangible assets of the US subsidiary of Holiday Garden Hotel Co., Ltd. totaled NT$4,750,825,000, accounting for 55% of the total consolidated assets. Due to the abundance of various types of accommodation hotels in recent years, fierce competition in the hotel industry, and the impact of the novel coronavirus pneumonia epidemic, the management identified signs that the real estate, plant and equipment and intangible assets of some subsidiaries may have been impaired. The company uses estimated future cash flows and discounts using an appropriate discount rate to measure the recoverable amount of these assets as a basis for assessing whether there is impairment. As the aforementioned estimates of future cash flows involve a number of assumptions, which may have a significant impact on the measurement of the recoverable amount, the accountant will use the equity method for investment impairment assessment (the US subsidiary’s property, plant and equipment and intangible assets impairment assessment). is listed as one of the important items in the audit this year.

Corresponding audit program

We have implemented the following audit program corresponding to the aforementioned audit matter. ：

1. Understand and evaluate the management's operating procedures for estimating future cash flows of subsidiaries, including reviewing that the operating plan for the next year is consistent with the approval of the board of directors

2. Assess the reasonableness of key assumptions used by management to estimate future cash flows.

1. Evaluate the rationality of various parameters and discount rates used in calculating the recoverable amount.

Responsibilities of management and those charged with governance for the parent company only financial statements

The responsibilities of management are to prepare appropriately stated parent company

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only financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers. Management is also responsible for maintaining necessary internal control relevant to the preparation of the parent company only financial statements to ensure that the parent company only financial statements are free from material 。 misstatement by fraud or error

Management when preparing parent company only financial statements is also responsible for evaluating Holiday Garden International Ltd.’s ability to continue as a going concern, disclosing relevant matters, and using the going concern basis of accounting unless management intends to liquidate Holiday Garden International Ltd., to cease the operations, or 。 to liquidate or to have no feasible alternatives but to do so

Account's responsibilities for the audit of parent company only financial statements

The objectives of accounts for auditing parent company only financial statements are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from any material misstatement due to fraud or error and to issue an accountant’s report accordingly. Reasonable assurance refers to a high level of assurance, but there is no guarantee that accountants performing in accordance with the generally accepted auditing standards of the Republic of China can detect any material misstatement from the parent company only financial statements. Misstatements may arise from fraud or errors. A misstated dollar amount, individually or in the aggregate, that could be reasonable predicted to influence the economic decision of the user of the parent company only financial statements can be viewed as material.

In accordance with the generally accepted auditing standards of the Republic of China, we exercised professional judgment and maintained professional skepticism throughout the audit. We also performed the following tasks ：

1. We identified and assessed the risks of material misstatement of the parent company only financial statements, whether due to fraud or errors, designed and performed audit procedures according to those risks, and obtained audit evidence that can sufficiently and appropriately form the basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for the one resulting from error because fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. We obtained an understanding of internal control relevant to the audit in order to design audit procedures suitable for the circumstances, but not for the purpose of expressing an opinion on the effectiveness of Holiday Garden International Ltd.’s internal control.

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1. We evaluated the appropriateness of accounting policies adopted and the reasonableness of accounting estimates and related disclosures made by management.

2. We concluded on the appropriateness of management’s use of the going concern basis of accounting and whether a material uncertainty exists related to events or conditions that may cast significant doubt on Holiday Garden International Ltd.’s ability to continue as a going concern based on the audit evidence we have obtained. If we conclude that a material uncertainty exists, we will need to draw attention in our accountant’s report to the related disclosures in the parent company only financial statements or to modify our opinion if such disclosures are inadequate. Our conclusions are based on the audit evidence obtained up to the date of this accountant’s report. However, future events or conditions may cause Holiday Garden International Ltd. to cease to continue as a going concern.

3. We evaluated the overall presentation, structure and contents of the parent company only financial statements, including the attached notes, and whether the parent company on financial statements represent the underlying transactions and events in a fair manner.

4. We obtained sufficient and appropriate audit evidence regarding the financial information of entities within Holiday Garden International Ltd. to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision, and performance of the audit of the parent company and are responsible for our audit opinion.

We have communicated with those charged with governance regarding the planned scope and the timing of the audit as well as material audit findings (including significant internal control shortcomings identified in the audit).

We have also provided those charged with governance the statement that the personnel of our accounting firm subject to the requirements of independence have complied with the requirements of independence of the code of professional ethics of certified public accountants of the Republic of China and communicate with those charged with governance relationships and other matters that may influence our independence (including related preventive measures).

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We determined the key audit matters of the parent company only financial statements of 2018 of Holiday Garden International Ltd. according to matters communicated with those charged with governance. We described these matters in the accountant’s report, unless the laws and regulations prohibit such disclosure or under rare condition that we decide not to communicate a given matter because the negative impact from such communication may override its public benefits under reasonable assumption.

PwC Taiwan

Independent accountants Wang Guo Hua Lin Yong Zhi Former Ministry of Finance Securities and Futures Commission Approval certificate No.: (87) Taiwan Financial Certificate (6) No.68790

Financial Supervisory Commission R.O.C.(Taiwan) Approval certificate No.: Chin Kuan Cheng Shen Tzu No. 1050029592

March 19, 2022

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Assets	Holiday Garden International Ltd. Independent Company Only Balance Sheet December 31 of 2021 and 2020 December 31, Notes Amount 6(1) $ 1,267,737 nt6(1)&8 966,700 6(2) 323 6(2) 1,376 92 1,708 6(3) 435 1,211 402 2,239,984 6(4) 1,529,304 6(5)(7) and 8 9,440 6(6) 10,602 6(23) 55,762 1,156 1,606,264 $ 3,846,248	Holiday Garden International Ltd. Independent Company Only Balance Sheet December 31 of 2021 and 2020 December 31, Notes Amount 6(1) $ 1,267,737 nt6(1)&8 966,700 6(2) 323 6(2) 1,376 92 1,708 6(3) 435 1,211 402 2,239,984 6(4) 1,529,304 6(5)(7) and 8 9,440 6(6) 10,602 6(23) 55,762 1,156 1,606,264 $ 3,846,248	Holiday Garden International Ltd. Independent Company Only Balance Sheet December 31 of 2021 and 2020 December 31, Notes Amount 6(1) $ 1,267,737 nt6(1)&8 966,700 6(2) 323 6(2) 1,376 92 1,708 6(3) 435 1,211 402 2,239,984 6(4) 1,529,304 6(5)(7) and 8 9,440 6(6) 10,602 6(23) 55,762 1,156 1,606,264 $ 3,846,248	2021 % 33 25 - - - - - - - 58 40 - - 2 - 42 100	Unit: NT$1,000 December 31, 2020 Amount % $ 60,874 2 973,505 31 - - 4,099 - 141 - - - 925 - 2,586 - 162 - 1,042,292 33 1,332,315 43 662,177 21 3,396 - 90,695 3 733 - 2,089,316 67 $ 3,131,608 100
			Amount $ 1,267,737 966,700 323 1,376 92 1,708 435 1,211 402 2,239,984 1,529,304 9,440 10,602 55,762 1,156 1,606,264 $ 3,846,248		Amount $ 60,874 973,505 - 4,099 141 - 925 2,586 162 1,042,292 1,332,315 662,177 3,396 90,695 733 2,089,316 $ 3,131,608
Current assets 1100 Cash and cash equivalents 1136 Financial assets at amortized cost - curre 1150 Net notes receivable 1170 Net accounts receivable 1200 Other accounts receivable 1220 Current income tax assets 130X Inventories 1410 Advance payments 1479 Other current assets - others 11XX Total current assets Non-current assets 1550 Investments accounted for using the equity method 1600 Property, plants, and equipment 1755 Right-of-use asset 1840 Deferred tax assets 1920 Guarantee deposits paid 15XX Total non-current assets 1XXX Total Assets	nt

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Holiday Garden International Ltd. Independent Company Only Balance Sheet December 31 of 2021 and 2020

									Unit: NT$1,000	Unit: NT$1,000	Unit: NT$1,000
				December		31,	2021	December	31,	2020
	Liabilities and equity	Notes			Amount		%	Amount		%
	Current liabilities
2100	Short-term borrowings	6(9) and 8		$	884,000		23	$	1,609,599		51
2110	Short-term notes and bills payable	6(10)				30,000	1		130,000		4
2130	Contractual liabilities - current	6(16)				682	-		8,506		-
2170	Accounts payable					946	-		3,140		-
2200	Other accounts payable					22,544	1		15,183		1
2230	Income tax liabilities					-	-		66		-
2280	Lease Liabilities - Current					2,984	-		1,287		-
2320	Long-term liabilities due within one	6(11)
	year or one operating cycle					52,196	-		18,597		1
2399	Other current liabilities - others					133	-		2,667		-
21XX	Total current liabilities				955,237		25		1,789,045		57
	Non-current liabilities
2540	Long-term borrowings	6(11)				–	–		13,948		–
2570	Deferred income tax liabilities	6(23)			124,991		3		236,212		8
2580	Lease obligation -non current					7,641	-		2,120		-
2610	Long-term notes and accounts	6(5)
	payable					–	–		127,577		4
2645	Guarantee deposits received					181	-		755		-
25XX	Total non-current liabilities				132,813		3		380,612		12
2XXX	Total liabilities				1,088,050		28		2,169,657		69
	Rights and interests
	Capital stock	6(13)
3110	Common share capital				1,104,856		29		1,104,856		35
	Capital surplus	6(14)
3200	Capital surplus					2,169	-		2,169		-
	Retained earnings	6(15)
3310	Statutory surplus public debt					82,561	2		82,561		3
3320	Special Defined Surplus Bonds					-	-		71,161		2
3350	Undistributed surplus (loss to be covered)				1,714,643		45	(	182,800)	(	6)
	Other equity
3400	Other equity	6(14)	(		146,031) (		4)	(	115,996) (		3)
3XXX	Total equity				2,758,198		72		961,951		31
3X2X	Total liabilities and equity			$	3,846,248		100	$	3,131,608	100

Please refer to notes of parent company only financial statements provided at the end, which is part of this parent
company only financial report.

Chairperson of the Board: Chen Hai-niManager: Chen Hai-ni

Accounting Director: Yu Su-ling

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Holiday Garden International Ltd. Independent Company Only Statement of Comprehensive Income January 1 to December 31 of 2021 and 2020

Item

Unit: NT$1,000 (Except earnings (loss) per share, which is in NT$1.00) 2 0 2 1 2 0 2 0 Notes Amount % Amount % 6(16) $ 10,653 36 $ 13,018 23 6(3)(21)(22)( 3,499) ( 12 ) ( 3,254 ( 6) 7,154 66 9,764 17 6(21)(22) ( 43,532) ( 145) ( 28,107 ( 49) ( 36,378) ( 121) ( 18,343 ( 32) 6(17) 2,276 8 12,381 22 6(18)&7 2,831 9 4,449 8 6(19) ( 40,766) ( 136 ) ( 52,477) ( 92) 6(20) ( 11,190) ( 37 ) ( 11,857 ( 21) 6(4) ( 100,137) (333) ( 250,432 (440) ( 146,986) (489) ( 297,936 (523) ( 183,364 ) (610) ( 316,279 (555) 6(23) 29,433 98 64,898 114 ( 153,931) (512) ( 251,381) (441) 6(8)&12(2) 1,980,213 6593 ( 18,928) ( 33) $ 1,826,282) 6081 ($ 270,309) (474) 6(4) ($ 37,544) ( 125 ) ($ 71,256) ( 125 ) 6(21) 7,509 25 ( 14,251 ( 25) ($ 30,035) ( 100) ($ 57,005 ) ( 100) $ 1,796,247) 5981 ($ 327,314) ( 574) 6(24) ($ 1.39) ($ 2.28) ($ 17.92) ($ 0.17)

4000 Operating revenue 5000 Operating cost 5900 Operating gross profit Operating expenses 6200 Management expense 6900 Operating loss Nonoperating income and 7100 Interest income 7010 Other income 7020 Other gains and losses 7050 Financial cost 7070 Share of profit or loss of 7000 Total non-operating income 7900 Net profit (loss) before tax 7950 Income tax (expense) benefits 8000 Net loss of continuing business units for the current period 8100 Profits (losses) of closed units 8200 Net profit (loss) Other comprehensive income Items may be subsequently 8361 Exchange differences on 8399 Income tax of items that may 8300 Other comprehensive income 8500 Total comprehensive income Earnings (loss) per share 9710 Net loss from continuing business units 9720 Net profit (net loss) of discontinued units

Please refer to notes of parent company only financial statements provided at the end, which is part of
this parent company only financial report.

Chairperson of the Board: Chen Hai-ni Manager: Chen Hai-ni

Accounting Director : Yu Su-
ling

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Holiday Garden International Ltd. Independent Company Only Statement of Comprehensive Income January 1 to December 31 of 2021 and 2020

					Unit: NT$1,000
		(Except earnings (loss) per share, which is in NT$1.00)
9750	Basic earnings (loss) per share		16.53	) ($ 2.45)
9810	Net loss from continuing business units		($ 1.39)		($ 2.28)
9820	Net profit (net loss) of discontinued units		17.92	(	$ 0.17)
9850	Diluted earnings (loss)per share	($	16.53 ) ( $ 2.45)

Please refer to notes of parent company only financial statements provided at the end, which is part of
this parent company only financial report.

Chairperson of the Board: Chen Hai-ni Manager: Chen Hai-ni

Accounting Director : Yu Su-
ling

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Holiday Garden International Ltd.
Independent Company Only Statements of Changes in Equity

Unit: NT$1,000

January 1 to December 31 of 2021 and 2020

Retainedearnings
Exchange
differences
on
translation
ShareCapital S t a t u t o r y Special Undistribuof foreign
c a p i t a l  -R e s e r v e  -surplus surplus tedf i n a n c i a l
Notescommon stockIssue Premiumreserve reservesurp lus s t a t e m e n t sTotal

2020

2020
Balance on January 1, 2020		$		1,104,856	$		2,169- $		82,561	$		71,161	$		87,509	$		58,991- $		1,289,265
Current net profit				-			-		-			-	(		270,309)			- (		270,309)
Other comprehensive income for this year				-			-		-			-			-	(		57,005 ) (		57,005)
Total current comprehensive income				-			-		-			-	(		270,309)	(		57,005 ) (		327,314)
Balance, December 31, 2020			$	1,104,856		$	2,169	$	82,561		$	71,161	($		182,800)	(	$	115,996))	$	961,951
2021
Balance on January 1, 2021			$	1,104,856		$	2,169	$	82,561		$	71,161	($		182,800)	(	$	115,996))	$	961,951
Net profit for the current period				-			-		-			-			1,826,282			-		1,826,282
Other comprehensive income for this year				-			-		-			-			-	(		30,035))(		30,035 )
Total comprehensive profit and loss for the current period				-			-		-			-			1,826,282	(		30,035))(		1,796,247 )
Special surplus reserve reversal	6(16)			-			-		-	(		71,161 )			71,161			-		-
Balance on December 31, 2021			$	1,104,856		$	2,169	$	82,561		$	--		$	1,714,643	(	$	146,031))	$	2,758,198

Please refer to notes of parent company only financial statements provided at the end, which is part of this parent company only financial report.

Manager: Chen Hai-ni

Chairperson of the Board: Chen Hai-ni

Accounting Director: Yu
Su-ling

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Holiday Garden Hotel Co., Ltd. Independent Company Only Cash Flow Statement January 1 to December 31 of 2021 and 2020

Cash flows from operating activities Net loss before tax of continuing business unit )Pre-tax net profit (net loss) of closed units Net profit (losses) before tax Adjustments: Revenue/expenses Provision for bad debt expense Depreciation expenses Lease Modification Benefit Interest expense Interest income Share of profit of subsidiaries, associates, joint ventures accounted for using equity method Disposal of interests in property, plant, equipment Impairment losses on non-financial assets Changes in assets/liabilities related to operating activities Net changes in assets related to operating activities Notes receivable Accounts receivable Inventories Advance payments Other current assets - others Net changes in liabilities related to operating activities Contractual liabilities - current Notes payable Accounts payable Other accounts payable Other current liabilities - other Operating cash inflows (outflows) Interests received Interests paid Income taxes paid Net cash outflows from operating activities Cash flows from investment activities Other financial assets - increased flows Acquire an investment using the equity method Acquisition of property, plant and equipment Disposal of property, plant and equipment Increased margin deposit Net cash inflow from investing activities Cash flows from fundraising activities Increase in short-term borrowings Decrease in short-term borrowings Short-term notes payable decreased Lease principal repayment repay long-term loan Decreased deposits Net cash (outflow) inflow from

Unit: NT$1,000 Notes 2021 2020 ($ 183,364 ) ($ 316,279) 6(8) 2,036,842 ( 23,960) 1,853,478( 340,239) 12(2) ( 542 ) 447 6(5)(5) (21) 10,448 26,210 6(6)(19) ( 14 ) ( 16) 6(20) 23,266 21,832 6(17) ( 2,276 ) ( 12,381) 6(4) 100,137 250,432 6(19) ( 2,052,593 ) - 6(19) 2,083 - ( 323 ) 938 3,265 1,882 490 68 1,375( 280) ( 240 ) 79 ( 7,824 ) 310 -( 322) ( 2,194 ) 621 5,410( 726) ( 2,534 ) 138 ( 68,588 ) ( 51,007) 2,325 15,114 ( 24,174 ) ( 21,586) ( 97,749 ) ( 449) ( 188,186 ) ( 57,928) 6,805 25,481 6(4) ( 334,670 ) - 6(25) ( 130,962 ) ( 1,599) 2,700,376 - ( 423 ) ( 355) 2,241,126 23,527 6(26) 2,274,401 1,791,099 6(26) ( 3,000,000 ) ( 1,711,500) 6(26) ( 100,000 ) - 6(26) ( 1,307 ) ( 516) 6(26) ( 18,597 ) ( 75,661) ( 574 ) ( 115) ( 846,077 ) 3,307

Please refer to notes of parent company only financial statements provided at the end, which is part of this parent company only financial report. 。

Chairperson of the Board: Chen Hai-ni Manager: Chen Hai-ni

Accounting Director : Yu Su-
ling

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Holiday Garden Hotel Co., Ltd. Independent Company Only Cash Flow Statement January 1 to December 31 of 2021 and 2020

financing activities Increase (decrease) in cash and cash equivalents in the current period Cash and cash equivalents at the beginning of the period Closing balance of cash and cash equivalents	Notes 6(1) 6(1)	Unit: NT$1,000 2021 2020 1,206,863( 31,094) 60,874 91,968 $ 1,267,737 $ 60,874

Please refer to notes of parent company only financial statements provided at the end, which is part of this parent company only financial report. 。

Chairperson of the Board: Chen Hai-ni Manager: Chen Hai-ni

Accounting Director : Yu Su-
ling

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Holiday Garden International Ltd. Notes for Parent Company Only Financial Statements 2021 and 2020

Unit: NT$1,000 (Unless otherwise noted) )

1. Company milestones

Holiday Garden International Ltd. (the “Company”) was established in July 1959, and the primary scope of business includes tourism hotels and attached restaurants and swimming pools. The Company has been a Taiwan Stock Exchange Corporation 。 (TSEC) listed company since February, 1965

2. Date and procedure of approval of the financial report

This parent company only financial report has been approved and issued by the 。 Board of Directors on March 24, 2022

3. Applicability of newly issued and revised standards and interpretations

(1) Impacts from adopting the latest, amended and revised International Financial Reporting Standards (IFRS) approved by the Financial Supervisory Commission (ROC)

The following table summarizes the latest, amended and revised IFRS standards and interpretations applicable for 2021 approved by the Financial Supervisory Commission:

Newly issued/revised/amended standards and interpretations Amendments to IFRS 4 "The temporary waiver is an extension of IFRS 9" Stage 2 Amendments to IFRS 9, IFRS 39, IFRS 7, IFRS 4 and IFRS 16 「Interest Rate Indicator Changes」 Amendments to IFRS 16「COVID-19 related rent concessions after 30 June 2021」	Effective date of issuance
	by International Accounting Standards Board January 1, 2021 January 1, 2021 April 1, 2021

Note: The Financial Supervisory Commission allows it to be applied in advance on January 1, 2010

Except the following matters, the Company has determined that the standards and interpretations above has no material effect on the Company’s financial conditions and performance.

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(2) The impact of not yet adopting the newly issued or revised IFRS approved

by the FSC

The following table summarizes the newly issued, revised and revised standards and interpretations of the International Financial Reporting Standards approved by the FSC:

Effective date of

issuance by International

Accounting

Newly issued/revised/amended standards and interpretations Standards Board

• *Amendments to IFRS 3 「 Index to Conceptual Framework 」 January 1, 2022

• *Amendments to IAS 16 「 Property, plant and equipment;

• the price before reaching the intended state of us 」 January 1, 2022

*Amendments to IAS 37 「 Amendments to IAS 37 」 January 1, 2022

• Annual Improvements in the 2018~2020 Cycle January 1, 2022

The Group has determined that the standards and interpretations above has no material impact on the Group’s financial conditions and performance.

(3) Impact of International Financial Reporting Standards issued by the

International Accounting Standards Board but not yet endorsed by the FSC

The following table summarizes the new publications, amendments and revisions to the IFRS that have been issued by the IASB but have not yet been incorporated into the FRS-approved standards and interpretations:

Effective date of

issuance by International

Accounting

Newly issued/revised/amended standards and interpretations Standards Board

• Amendments to IFRS 10 and IAS 28 「 Sales or contributions

• of assets between investors and their affiliates or joint ventures 」 To be announced

• IFRS 17 「 Insurance Contracts 」 January 1, 2023

• Amendments to IFRS 17 「 Contracts of Insurance 」 January 1, 2023

• Amendments to IFRS 17 「 First use of IFRS 17 and January 1, 2023

• IFRS 9 - Comparative information 」

• Amendments to IAS 1 「 Current or non-current classification January 1, 2023

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of liabilities 」

• Amendment to IAS 1 「 Disclosure of Accounting Policies 」 January 1, 2023

• Amendments to IAS 8 「 Definition of Accounting Estimates 」 January 1, 2023

• Amendments to IAS 12 「 Deferred income tax relating to

• assets and liabilities arising from a single transaction 」 January 1, 2023

The Group has determined that the standards and interpretations above has no material impact on the Group’s financial conditions and performance

4.Summary of significant accounting policies

The major accounting policies adopted for preparing these consolidated financial reports are described below. Unless otherwise specified, these policies are consistently applied in the entire period reported.

(1) Statement of compliance

This consolidated financial report is prepared in accordance with IFRS and IAS approved by the Financial Supervisory Commission and the related interpretations, and interpretative bulletins (IFRSs).

(2) Basis of preparation

• 1.The consolidated financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair value.

• 2.To prepare for financial reports in accordance with IFRSs, some important accounting estimations are required. When applying the Group’s accounting policies, management also needs to make judgment, which involves accounts of a high level of decision-making and complexity or accounts associated with material assumption and estimation. Please refer to Note 5.

(3)Foreign currency conversion

• Items listed in the company's individual financial report are measured in the currency of the primary economic environment (ie, the functional currency). This individual financial report is presented in the company's functional currency "New Taiwan Dollar" as the presentation currency.

• Foreign currency transactions and balances

• (1) Foreign currency transactions are translated into functional currency using the spot exchange rate on the transaction date or measurement date, and the translation differences arising from the translation of these transactions are recognized as

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current profits and losses.

• (2) The balance of foreign currency monetary assets and liabilities shall be evaluated and adjusted according to the spot exchange rate on the balance sheet date, and the translation difference arising from the adjustment shall be recognized as the current profit and loss.

• (3) The balance of foreign currency non-monetary assets and liabilities, which are measured at fair value through profit or loss, are adjusted according to the spot exchange rate on the balance sheet date, and the exchange difference arising from the adjustment is recognized as the current profit and loss; If the comprehensive profit or loss is measured at fair value, it is adjusted according to the spot exchange rate on the balance sheet date, and the exchange difference arising from the adjustment is recognized in other comprehensive profit and loss items; Exchange rate measurement.

• (4) All exchange gains and losses are presented in “Other gains and losses” in the Consolidated statement of profit or loss.

• Conversion of foreign operating agencies

• (1) For all group entities whose functional currency is different from the expression currency, the operating results and financial conditions of which are converted into the expression currency in the following manner:

• A. Assets and liabilities expressed on each balance sheet are translated at the closing exchange rate on the balance sheet date;

• B. The gains and losses expressed in each consolidated income statement are translated at the average exchange rate for the period; and

• C. All translation differences arising from translation are recognized as other comprehensive gains and losses.

• (2) When a partially disposed or sold foreign operating institution is a subsidiary, the accumulated exchange differences recognized as other comprehensive gains and losses shall be re-attributed to the non-controlling interests of the foreign operating institution on a pro-rata basis. However, if the company still retains part of the rights and interests in the former subsidiary, but has lost the control of the foreign operating organization that is a subsidiary, it will be treated as a disposal of all the rights and interests of the foreign operating organization.

• (4) Classification of current and non-current assets and liabilities

  1. Assets that meet one of the following criteria are classified as current assets ：

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  - (1)Assets expected to be realized in the normal operating cycle or intended to be sold or consumed.

  - (2)Liabilities held primarily for transaction purposes.

  - (3)Liabilities that are to be paid off within 12 months after the balance sheet date 。

  - (4)Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Classification of liabilities for which, at the option of the counterparty, repayment is required for the issue of equity instruments is not affected

  - The Company classifies all liabilities that do not meet the above criteria as noncurrent.

1. Liabilities that meet one of the following criteria are classified as current liabilities ：

   • (1)Liabilities expected to be paid off in the normal operating cycle.

   • (2)Liabilities held primarily for transaction purposes.

   • (3)Liabilities that are to be paid off within 12 months after the balance sheet date.

   • (4)Liabilities for which the repayment date cannot be extended unconditionally to more than twelve months after the balance sheet date. Classification of liabilities for which, at the option of the counterparty, repayment is required for the issue of equity instruments is not affected.

   • The Company classifies all liabilities that do not meet the above criteria as noncurrent.

2. (5) Cash equivalents

3. Cash equivalents refer to short-term, highly liquid investments, which can be readily converted to fixed cash and has an insignificant risk of value change. Time deposits are classified as cash equivalents because they meet the above definition and their holding satisfies short-term cash commitments for operation .

4. (6) Financial assets at amortized cost

1. Finanacial assets at cost are corresponding to the following conditions ：

  - `(1)` The business model of the company which owns such financial assets is to

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collect the contractual cash flows as purpose.

• (2)The contractual cash flows of specific financial asset under consideration are on account of repayment of principal and interest and they occur on specified dates.

2. The Group uses trade day accounting for financial assets measured at amortized cost through profit or loss and satisfying the accounting practice.

3. The Group measured transaction cost of initial recognition which reported at fair value .Using the effective interest method and is recognized in profit and loss which are recognized in profit and loss when the asset is derecognized.

1. The company holds time deposits that do not meet the cash equivalent. Due to the short holding period, the impact of discounting is not significant and is measured by the investment amount.

(7)Accounts and notes receivable

1. This term refers to accounts and notes granting an unconditional right to receive consideration in exchange for transferred goods or rendered services in accordance with the contract.

2. For short-term accounts receivable without interest payment, they are measured at the original invoice amount because of insignificant effect of discounting.

(8) Impairment loss on financial assets

• The Company assesses the financial assets measured at amortized cost based on all reasonable and evidence-supported information (including those on a prospective basis) at each balance sheet date. For financial assets exposed to significantly increasing credit risk after the initial recognition, the Company measures the loss allowance for 12-month expected credit losses. For financial assets exposed to significantly increasing credit risk since the initial recognition, the Company measures the loss allowance for the financial assets at an amount equal to the lifetime expected credit losses. For accounts receivable that does not contain a significant financing component, the Company measures the loss allowance at an amount equal to lifetime expected credit losses for trade receivable .

(9)Derecognization of financial assets

The Company derecognizes a financial asset if one of the following conditions is met ：

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1. The contractual rights to receive cash flows from the financial asset expire.

1. The contractual rights to receive cash flows from the financial asset are transferred, and almost all risks and rewards of the ownership of the financial asset have been transferred.

2. The contractual rights to receive cash flows from the financial asset are transferred, and the control over the financial asset is not kept.

3. (10) Operating lease (lessor)

4. Payments received under operating leases, net of any incentives given to the lessees, are recognized in profit or loss on a straight-line basis over the term of the lease.

5. (11) Inventories

Inventories are measured at the lower of cost and net realizable value, and the cost is determined by the weighted average method. The item by item method is adopted to compare between the cost and the net realizable value to decide which one is lower. The net realizable value refers to the estimated sale price in the normal course of business, less relevant variable selling expenses.

• (12) Investments/subsidiaries accounted for using the equity method

• 1.Subsidiaries refer to entities controlled by the Company (including structure entities). When the Company is exposed to variable rewards from participating in that entity or entitled to rights to said variable rewards and the Company has the power and ability to affect said rewards of that entity, the Company controls said entity.

• 2.The unrealized profit or loss generated from transactions between the Company and the subsidiary has been eliminated. Necessary adjustment of accounting policies of the subsidiary has been made so it is consistent with policies of the Company.

• 3.The Company recognizes the share of profit or loss after acquiring the subsidiary in profit or loss, and as for the share of other comprehensive income after the acquisition, it is recognized in other comprehensive income. If the Company’s recognized share of impairments of a subsidiary is equal to or more than its equity of the subsidiary, the Company shall continue to recognize the

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loss in proportion to the Company’s percentage of ownership in the subsidiary.

• 4.In accordance with the Regulations Governing Preparation of Financial Reports by Securities Issuers, the profit or loss and other comprehensive income of the parent company only financial report should be the same as the share of the profit or loss and other comprehensive income belonging to the owner of the parent company in the consolidated financial report. The owner's equity in the parent company only financial report, should be the same as the equity belonging to the owner of the parent company in the consolidated financial report.

(13) Property, plants, and equipment

1. Property, plants, and equipment are carried at acquisition cost, and the related interests during the construction period are capitalized.

2. Subsequent cost may become a carrying amount of the assets or be recognized as a single asset only if future economic benefits associated with this item may flow into the Company, and the cost of this item can be reliably measured. The carrying amount of the replaced part should be derecognized. All other repair and maintenance expenses are recognized in profit or loss when they are incurred.

3. Property, plants, and equipment are measured subsequently using the cost model. Except land, which is not depreciated, all others are depreciated by the straightline method according to the estimated useful lives. Significant components of property, plants, and equipment should be depreciated separately.

4. The Company reviews each asset’s residual value, useful life, and depreciation method at the end of each fiscal year, and if the expected residual value and useful lives are different from the previous estimation or if the expected consumption type of future economic benefits of a given asset has any material change, the stipulation on changes in accounting estimates from IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors is adopted for treatment. The useful lives of assets are listed below ：

Buildings and structures 2 to 55 years Utility equipment 3 to 20 years Business facilities/equipment 1 to 25 years Other facilities 3to 8 years

(14)Lease transaction of Lessee － Right-of-use asset/Lease obligations

• 2019 applicable

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1. Leased assets are recognized as right-of-use assets and lease liabilities at the date they become available for use by the Group. The lease payments are recognized as an expense over the lease term using the straight-line basis when a lease contract is a short-term lease or a lease of a low-value subject asset

2. Recognized the lease obligations as the present value of incremental borrowing rate of interest which lease started .The lease benefit included fixed benefit ,and deducted any Incentive . Provided the interest during the lease by measuring the cost after amortization whit adopting interest method . The group will reevaluate lease obligations and adjust the right-of-use assets when the lease term or benefit changed by amending non-contract .

3. Right-of-use assets are recognized as cost at the beginning of the lease .The cost includes the original measured amount of the lease liabilities. The useful life of right-of-use assets or the expiry date of the lease term will be provided to be depreciation. The right-if-use asset will adjust any remeasurement of the lease liabilities which is reassessed.

(15) Impairment of non-financial assets

On the balance sheet date, the Company estimates the recoverable amount of assets with signs of impairment and recognizes impairment losses when the recoverable amount is lower than its book value. The recoverable amount is the fair value of an asset less the cost of disposal or its value in use, whichever is higher. Except for goodwill, when there is no or decrease in the recognized asset impairment in previous years, the impairment loss shall be reversed, but the increase in the carrying amount of the asset due to reversal of impairment loss shall not exceed the reduction in the asset if the impairment loss was not recognized. The carrying amount after depreciation or amortization.

(16) Loans

It refers to long-term and short-term funds borrowed from banks. The Company measures its fair value less transaction costs at the time of original recognition, and subsequently recognizes interest expenses during the circulation period using the effective interest method for any difference between the price after deducting transaction costs and the redemption value according to the amortization procedure. in profit and loss.

(17) Accounts and notes payable

1. Accounts and notes payable are liabilities for purchases of raw materials, goods or services resulting from operating and non-operating activities.

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1. Short-term notes and accounts payable without bearing interest are measured at initial invoice amount because of an insignificant effect of discounting .

2. (18) Delisting of financial liabilities.

The Company will derecognize a financial liability when the contracted obligations 。 are fulfilled, canceled, or expired

• (19) Offset of financial assets and liabilities

Financial assets and financial liabilities may only be offset when there is a legally enforceable right to offset the recognized amounts of financial assets and liabilities, and the intention is to deliver on a net basis or to realize the assets and settle the liabilities simultaneously. Expressed on a net basis on the balance sheet.

(20) Employee benefits

1. Short-term employee benefits

2. Short-term employee benefits are measured at undiscounted amount of prospective payment and are recognized as expenses when related services are rendered.

3. Pensions

Defined contribution plans (DCP)

For defined contribution plans, the contribution amounts for pension are recognized in the current pension expense when they are due on the accrual basis. Prepaid contributions are recognized as assets to the extent of refundable cash or reduction in future payment.

3. Employee compensation and director and supervisor remuneration Employee compensation and director and supervisor remuneration are legal or constructive obligations and are recognized as expenses and liabilities when the amount can be reasonably estimated. Deviation between estimated and actual distribution amount shall be treated in accordance with changes in accounting estimates. For stock distribution as employee remunerations, the closing price of the day prior to the resolution of the Board of Directors shall be the basis for 。

calculating the number of shares

(21) Income tax

• 1.Income tax expense Income tax is recognized either in the income statement or in equity if it relates to items that are recognized in other comprehensive income or directly in equity.

• 2.The Company calculates the current income tax using tax rates enacted or

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substantively enacted by the balance sheet date of the country generating the taxable income from operations Management periodically evaluates the condition of income tax filing in accordance with appropriate income tax related laws and regulations and if applicable shall estimate income tax liabilities based on the expected tax payments to the tax authorities. There is an additional tax of unappropriated earnings according to the Income Tax Act, and after the earning distribution is approved at the shareholders’ meeting held in the year following the year the earnings are generated, the tax expense of undistributed earnings 。 shall be recognized based on the actual condition of earning distribution.

3. For deferred tax, the balance sheet liability method is adopted, and it is recognized using the temporary differences between the tax bases of assets and liabilities and their carrying amounts in the balance sheet. Deferred tax is not recognized if it is originated from the initial recognition of assets or liabilities in transactions (business merger excluded) and neither accounting profits nor taxable income (or tax losses) was affected at the time of the transaction. Deferred tax is determined using tax rates (and tax laws) enacted or substantively enacted by the balance sheet date, and the tax rates (and tax laws) used are the ones expected to be applicable when realizing related deferred tax assets or repaying related deferred tax liabilities .

4. Deferred tax assets are recognized to the extent when they are highly likely to be used to offset future taxable income, and unrecognized and already recognized deferred income tax assets should be re-evaluated on each balance sheet date.

5. Recognized income tax assets and liabilities of the reporting period are offset only if there is the legally enforceable right to do so and the intent is to settle on a net basis or to realize the asset and settle the liability simultaneously. Deferred income tax assets and liabilities are offset only if there is the legally enforceable right to do so and the deferred income tax assets and liabilities related to income taxes are levied by the same taxation authority on either the same taxable entity or different taxable entities, but each entity intends to either settle on a net basis or to realize the assets and settle the liabilities simultaneously.

(22) Dividend distribution

Dividends distribution among the Company's shareholders are recognized in the financial report when the Company’s shareholders’ meeting resolved that dividends are to be paid; cash dividend distribution is recognized as liabilities, while share dividend distribution is recognized as stock dividend to be distributed and be

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。 converted to common stock on the base day of issuance of new stock

(23) Revenue recognition

• 1.The Company provides accommodations and foodservice related products, and the sales revenue is recognized at the time services are rendered or products are delivered to customers.

• 2 Sales revenue is recognized as the contractual price net of the estimated price.

• 3.Accounts receivable are recognized at the time services are rendered or products are delivered to customers. Because at that time point the Company has the unconditional right to the contractual price, the consideration can be collected 。

• from customers after the time point

(24) Government subsidies

• Government grants are recognized at fair value when there is reasonable assurance that the enterprise will comply with the conditions attached to the government grant and will receive the grant. If the nature of the government grant is to compensate the expenses incurred by the Company, the government grant shall be recognized as the current profit and loss on a systematic basis during the period in which the relevant expenses are incurred.

5.Material accounting judgments, estimates and key sources of assumption uncertainty

When preparing this parent company only financial report, the Company's management has applied its judgment on determining the accounting policies used and made accounting estimates and assumptions based on reasonable expectation of future events according to the conditions at the balance sheet date. Material accounting estimates and assumptions may be significantly different from the actual results, and therefore, experiences and other factors are continuously evaluated and adjusted. These estimations and assumptions expose the carrying amounts of assets and liabilities to the risk of material adjustment in the next fiscal year. Uncertainty of material accounting judgments, estimates, and assumptions are described below ：

(1) Critical judgments adopted by accounting policies

The Company has made no critical judgments adopted by accounting policies.

(2) Critical accounting estimates and assumptions

Evaluation of investment impairment accounted for using the equity method

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When there are signs of impairments indicating that a given investment accounted for using the equity method may have been impaired to cause the carrying amount unrecoverable, the Company immediately evaluates the impairment of said investment. The Company evaluates the recoverable amount based on the discounted value of the future cash flows the Company is entitled to from the investee and analyzes the reasonableness of related assumptions .

6. Details of significant accounts

(1) Cash and cash equivalents

December 31, 2021 December 31, 2020

Cash: Cash in treasury and working funds Checking deposits and demand deposits Cash equivalents: Time deposits:		$ 420 1,267,317 1,267,737 – $ 1,267,737	$ 1,088 36,204 37,292 23,582 $ 60,874

• 1.The Company places cash and deposits with multiple reputable banks and financial institutions to disperse credit risk, and therefore, the probability of occurrence of default is very low.

• The cash and cash equivalents held by the Company as at 31 December 2021 and 2020 were restricted and not highly liquid due to the provision of pledges, and were classified into financial assets measured at amortized cost of $966,700 and $973,505, respectively, and classified according to liquidity.

(2)Net amount of accounts and notes receivable

Notes receivable Less: Allowance for doubtful accounts Notes receivable Less: Allowance for doubtful accounts 1.Aging analysis of accounts and notes	December 31, 2021 $ 323 - $ 323 $ 1,406 ( 30) $ 1,376 receivable：	December 31, 2020 $ - - $- $ 4,671 ( 572) $ 4,099

December 31, 2021 December 31, 2020

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Not past due and past due for 1 to 30 days Past due for 31 to 90 days Past due for more than 94 days	$ 1,299 401 29 $ 1,729	$ 2,244 1,859 568 $ 4,671

The above is the aging analysis based on past due days.

2. On December 31, 110, December 31, 109 and January 1, 109, the balances of receivables (including bills receivable) for contracts between the company and customers were $1,729, $4,671 and $7,491, respectively.

3. The Company does not t hold any collateral as security.

4. Without considering the collaterals held or other credit enhancement, the Company's maximum amount of credit risk exposure of the most representing notes receivable for December 31, 2021 and 2020 was NT$938 and NT$400 respectively. The Company's maximum amount of credit risk exposure of the most representing accounts receivable for December 31, 2021 and 2020 was NT$1,376 and NT$4,099 respectively.

5. For information related to credit risk of accounts and notes receivable, please 。

refer to 12(2)

(3)Inventories

ventories
Foods and non-alcoholic and alcoholic beverages Foods and non-alcoholic and alcoholic beverages		December 31, 2021 Allowance for price decline in inventories $- December 31, 2020 Allowance for price decline in inventories $-	Carrying amount
	Cost $ 435
			$ 435 Carrying amount
	Cost $ 925
			$ 925

The inventory cost that the Company recognized as expenses for 2021 and 2020 was $6,423 and $12,022 respectively .

(4) Investments accounted for using the equity method

1. Details of investment accounted for using the equity method are as follows:

January 1 Increase investments accounted for using the equity method Share of investment income accounted for using the equity method Capital stock return of investments accounted	2021 $ 1,332,315 334,670 ( 100,137) –	2020 $ 1,654,003 – ( 250,432) –

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for using the equity method Changes in other equity December 31 Holiday Garden International Ltd. Holiday Garden Development Co., Ltd.	( 37,544) $ 1,529,304 December 31, 2021 $ 1,492,819 36,485 $ 1,529,304	( 71,256) $ 1,332,315 December 31, 2020 $ 1,284,466 47,849 $ 1,332,315

2. Information of the Company’s subsidiaries are presented in Note 4(3) of the 。

Company's 2021 consolidated financial statements.

• (5)Property, plants, and equipment

1. The book value of property, plants, and equipment is presented below ：

Land Buildings and structures Utility equipment Business facilities/equipment Other facilities	December 31, 2021 $ – – – 5,809 3,631 $ 9,440	December 31, 2020 $ 481,493 161,188 5,784 12,847 865 $ 662,177

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2. Changes in property, plants, and equipment are as follows ：

2021

Cost Opening balance Land $ 481,493 Buildings and structures 618,478 Utility equipment 32,454 Business facilities/equipment 42,836 Other facilities 4,304 $ 1,179,565 使用滑鼠雙擊這裡以編輯新增的表格段。 Cost Opening balance Land $ 481,493 Buildings and structures 618,173 Utility equipment 32,288 Business facilities/equipment 40,047 Other facilities 3,965 $ 1,177,966	Cost Opening balance Land $ 481,493 Buildings and structures 618,478 Utility equipment 32,454 Business facilities/equipment 42,836 Other facilities 4,304 $ 1,179,565 使用滑鼠雙擊這裡以編輯新增的表格段。 Cost Opening balance Land $ 481,493 Buildings and structures 618,173 Utility equipment 32,288 Business facilities/equipment 40,047 Other facilities 3,965 $ 1,177,966	Addition $ - - - 1,567 4,677 $ 6,244 2020 Addition $ - 305 166 789 339 $ 1,599		Reduction ($ 481,493) ( 618,478) ( 32,454) ( 34,723) ( 5,319) ($ 1,172,467) Reduction $ - - - - - $-
	Opening balance $ 481,493 618,173 32,288 40,047 3,965 $ 1,177,966

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Accumulated depreciation and impairment	2021 1 Opening balance Addition $ 457,290 $ 5,788 26,670 722 29,989 4,398 3,439 290 $ 517,388 $ 11,198 2020 Opening balance Addition $ 436,879 $ 20,411 24,438 2,232 27,262 2,727 3,124 315 $ 491,703 $ 25,685	Reduction ($ 463,078) ( 27,392) ( 30,516) ( 3,698) ($ 524,684) Reduction $ - - - - $-	Closing balance $ - - 3,871 31 $ 3,902 Closing balance $ 457,290 26,670 29,989 3,439 $ 517,388
Buildings and structures Utility equipment Business facilities/equipment Other facilities Accumulated depreciation and impairment
	Opening balance $ 436,879 24,438 27,262 3,124 $ 491,703
Buildings and structures Utility equipment Business facilities/equipment Other facilities

3. In accordance with Kaohsiung Urban Development Kuei Tzu No. 10234984600 correspondence on October 28, 2013, the Company applied for making payment by installments for converting governmental land to commercial land in the land conversion urban plan, and the total amount to be paid is NT$212,628. The Company made the first installment payment of NT$85,051, and the remaining amount was paid by the second and third installment payments of $63,788 and $63,789 respectively. It should be paid in full before applying for a license for building a license or changing a license for use at the latest. All of them have been estimated and included in the accounts in 2013. The land has been signed and sold on July 7, 2021, and the payment has been paid in 2021. Pay in full in September (the balance table of the Republic of China on December 31, 2020 lists "long-term bills payable and payments $127,577").

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4. There was no borrowing cost capitalization of the Company’s property, plants, and equipment in 2021 and 2020.

1. The major components of the company's buildings and buildings include buildings and decoration works, which are depreciated over 55 years and 15 to 25 years respectively.

2. For the impairment of real estate, plant and equipment, please refer to Note 6(7).

3. For information on guarantees provided by real estate, plants and equipment, please refer to Note 8.

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－ (6)Lease transaction Lessee

Applicable in 2019

• 1.The lease assets of the company included buildings and multifunctional office machine, and the terms between 2 to 5 years. The contract included different provisions and requirements, and no other restriction except using the assets as the guarantee to debit and credit.

• 2.The operating equipment of company included part of buildings and official vehicles and the terms are not over 12 months, they all belong to leases of lowvalue assets.

3. The changes in the Company's right-of-use assets in 2021 and 2020 are as follows:

                         2021
                           Houses    Transportation     Money             Total
Equipment         Making Tools
Jan.01         $    2,500    $        872     $          24    $    3,396
Add                 9,251              –              1,264       10,515
Depreciation  (       857)  (         338)   (          138)  (     1,333)
Expense
–
Disposal       (     1,952)             (           24)  (     1,976)
Dec.31         $    8,942  $        534  $        1,126 $   10,602
                         2020
                          Houses    Transportation     Money             Total
Equipment         Making Tools
Jan.01         $    1,861    $         –     $          96    $    1,957
Add                 2,813           1,013                –         3,826
Depreciation  (       312)  (         141)   (           72)  (       525)
Expense
––
Disposal       (     1,862)             (           )  (     1,862)
Dec.31         $    2,500  $        872  $          24   $    3,396

• 4.The increase in the Company's right-of-use assets in 2021 and 2020 is $10,515 and $3,826, respectively.

• Information of loss and gains related to lease transaction as the followings:

Affected project of current loss and gain Lease obligation interest $ Expense of short-term lease Expense of leases of low-value assets Variable lease payments:	2021 54 $ 413 70 140	2020
		21 1,037 213 -

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Lease Modification Benefi ( 14 ) ( 16)

1. The Company's total lease cash outflows in 2021 and 2020 are $1,984 and $1,787, respectively.

2. Effect of variable lease payments on lease liability

   • (1) The subject of the company's lease contract with variable lease payment terms is the one linked to the sales amount of various products at the department store counter. As for the leasing object of department store counter type, it is based on the payment terms of variable price, and is mainly related to the sales amount of various products. Lease payments that vary in relation to the sales amount of each type of product are recognised as an expense in the period in which these payment terms are triggered.

   • (2) If the sales of department store counters in the company increase, the fee for variable lease payment will increase according to the operating income.

3. (7) Impairment of non-financial assets

4. The details of impairment losses recognized by the Group are as follows:

==> picture [315 x 61] intentionally omitted <==

• 2.In 2021, the company disposes of the Liuhe Pavilion and changes its business model, resulting in impairment of business equipment. The Company has adjusted its carrying amount to the recoverable amount and recognised an impairment loss of $2,083. The recoverable amount is the use value of the business equipment. Since the impact of discounting is small, the company has not discounted it.

The cumulative impairment changes are as follows:

Increase in Decrease in

Jan.01,2021 this period this period Dec.31 2021

• • business equipment $ $ 2,083 ($ 2,083) $

(8) Suspension of business units

• 1.Approved by the board of directors on May 5, 2021 and approved by the shareholders' meeting on July 6, 2021, the company intends to dispose of the real estate located at the current location of the company registration and Liuheguan operation, which meets the definition of a closed unit and is expressed as a closed unit. The transaction has been signed on July 7, 2021 in the Republic of China, and

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the real estate sale and purchase contract will be completed on November 26, 2021 in the Republic of China.

1. The cash flow information of discontinued units is as follows:

		2021			2020
Cash flow from operating activities	( $	13,555	)	$	5,405
Cash flow from investing activities		2,700,376	(		1,599	)
Cash flow from financing activities		–			–
Total cash flow	$	2,686,821		$	3,806

• 3.An analysis of the operating results of the discontinued unit is as follows:

		2021	2020
Operating income	$	33,012 $	82,849
Operating cost	(	19,577 ) (	38,367)
Operating expenses	(	51,620 ) (	66,471)
Expected credit impairment gain (loss)		542 (	447)
Total non-operating income and expenses		14,755 (	1,524)
Pre-tax net profit (loss) of discontinued units	(	22,888 ) (	23,960)
Income Tax (Expense) Benefit		4,577	5,032
After-tax net profit (loss) of discontinued units	( $	18,311 ) ( $	18,928 )

			2021	2020
Disposal of the benefits of the discontinued unit (before tax)		$	2,059,730	$ –
Income tax expense	(		61,206 )	–
Disposal of the benefits of the discontinued unit (after tax)		$	1,998,524	$ –

*Please refer to Note 6(18) for the government subsidy income recognized

by discontinued units.

(9) Short-term loans

The nature of the loan December 31, 2021 December 31, 2020 The short-term bank loan Secured loan $ 884,000 $ 1,519,599 Credit loan - $ 90,000 $ 884,000 $ 1,609,599 Interest rate range 0.94%~0.99% 0.94%~1.62%

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1. For the interest expense of the Group's bank borrowings recognized in profit or loss, please refer to the explanation in Note 6 (20).

2. For the collateral for the above short-term borrowings, please refer to Note 8.

(10) S ort-term notes payable

		Dec.31, 2021	Dec. 31, 2020
Commercial paper payable	$	30,000 $	130,000
Interest rate range		0.56%	0.55% ~0.90%

The above short-term bills payable are guaranteed by financial institutions such as bill companies.

- (11)Long term borrowings

Types of borrowings Period of borrowing and repayment method Range of interest rates Long-term borrowings from banks Credit loan From Sept. 18,2012 to Sept. 18,2022 interest will be paid monthly, and from Dec. 18,2015 it will be amortized quarterly and repaid in 28installments. Sign the loan repayment deferred contract in June 1.60% 2020, and only need to pay interest until March 2021, and the principal will be amortized on a quarterly basis according to the fixed amount. Credit loan Less: From Sept. 20, 2019 to Sept. 20, 2022, the principal and interest will be repaid monthly. Long-term borrowings due within One year 1.10% Types of borrowings Period of borrowing and repayment method Range of interest rates Long-term borrowings from banks	Collaterals None None Collaterals	December 31, 2021 $ 8,948 5,000 13,948 (13,948) $- December 31, 2020

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Credit loan From Sept. 18,2012 to Sept. 18,2022 interest will be paid monthly, and from Dec. 18,2015 it will be amortized quarterly and repaid in 28installments. Sign the loan repayment deferred contract in June 2020, and only need to pay interest until March 2021, and the principal will be amortized on a quarterly basis according to the fixed amount. 1.60% None Credit loan From Sept. 20, 2019 to Sept. 20, 2022, the principal and interest will be repaid monthly. 1.10% None Less: Long-term borrowings due within one year

$ 20,878 11,667 32,545 ( 18,597) 13,948

• For the interest expense recognised in profit or loss on bank borrowings of the Company, please refer to the explanation in Note 6(20).

(12) Pensions

1. In accordance with the Labor Pension Act, the Company set up the defined contribution plan for retirement for employees who are the citizens of ROC starting from July 1, 2005. According to employee’s option for the labor pension system stipulated by the Labor Pension Act, the Company each month contributes to the Labor Pension Fund at the rate of 6% of employees’ monthly wages. Payments of employees pension are made to each employee’s personal pension account and employees can choose to receive the principal and the cumulative gains by monthly pension payments or a lump sum 。

pension payment

2. In accordance with the above-mentioned pension plan, the Company recognized a pension cost of NT$2,020 and NT$2,512 in 2021 and 2020 respectively.

(13) Capital stock

As of December 31, 2021, the Company’s authorized capital was NT$1,500,000, and the paid-in capital was NT$1,104,856,000 which was divided into 110,486, 000 shares, with a par value of NT$10 per share. The Company’s issued shares are fully paid-up.

Reconciliation of the Company’s common stock outstanding at the beginning and the end of the reporting period is as follows:

Unit: 1,000 shares

~39~

2021 2020 110,486 110,486

January 1(=Dec. 31)

(14) Capital surplus

In accordance with the Company Act, the capital surplus from shares issued in excess of par and donations may be used to offset a deficit, or when the company has no deficit,

the capital surplus can then be distributed as cash dividends or new stock among shareholders in proportion to their original shareholdings. Moreover, according to the Securities and Exchange Act, for the above-mentioned capital increase by capital surplus, the total amount each year cannot exceed 10% of the paidin capital. The Company cannot use capital surplus for capital increase unless the reserve is not enough to cover the capital losses.

(15) Retained earnings

1. In accordance with the Company's Articles of Incorporation, if there are earnings upon the Company's final account at the end of the year, the Company shall first pay profit-seeking enterprise income tax, make up the deficits for the preceding years and then set aside a legal reserve of 10% of the reminder (not applicable if the legal reserve has reached the total capital amount of the Company). After appropriating or reversing a special reserve in accordance with laws, the balance and the unallocated accumulated earnings from the previous years are the accumulated, distributable earnings for shareholders, for which the Board of Directors shall propose an earning distribution plan to be resolved at the shareholders’ meeting. More than 10% of the aforementioned allocable earnings are provided for dividends and shareholders’ bonuses, and the cash dividends should be no less than 10% of the total amount of shareholders’ dividends and bonuses

2. The legal reserve cannot be used for purposes other than offsetting the company’s deficits or providing new stock or cash to shareholders in proportion to their original shareholding. If the reserve is used for distributing new stock or cash, it has to be more than 25% of the Company’s paid-in capital.

• 3.(1) The Company shall first set aside a special reserve from the debit balance on the “other equity” item at the balance sheet date before distributing earnings, and later when this debit balance on the “other equity” item is reversed, the reversed amount can be included in distributable earnings.

• (2) In accordance with Order 1010012865 issued by the Financial Supervisory Commission on April 6, 2012, for an entity adopting IFRSs

~40~

the first time should set aside a special reserve. Later on, when the Company uses, disposes, or reclassifies related assets, the special reserve can be used for reversal by the proportion of the special reserve that has been set aside. If the aforementioned asset is investment property, the land part shall be reversed when it is disposed or reclassified, and for the non-land part, it shall be reversed progressively throughout the term of use.

• (3) Due to the disposal of the real estate of Liuhe, the Company reversed the original special surplus reserve of $71,161 to undistributed surplus.

4. The company's 2021 and 2020 dividends recognized as distribution and owner's dividends are both $0. On March 24, 2022, the board of directors proposed the 2021 earnings distribution plan to distribute cash dividends of NT$1 per share 。

and stock dividends of NT$3.5 Total dividends are $497,185 .

(16) Operating income

ating income
		2021	2020
Revenue from customer contracts	$	43,665 $	95,867
Less: Operating income of discontinued units	(	33,012 ) (	82,849)
	$	10,653 $	13,018

1. Revenue from customer contracts The Company's revenue can be broken down into the following major product lines:

					Food &
			Room		Beverage	Other
2021			Revenue		Income	Income	Total
Revenue from external client contracts		$	21,472	$	19,204 $	2,989 $	43,665
Less: Operating income of discontinued units	(		21,472 ) (		9,398 ) (	2,142 ) (	33,012 )
		$	–	$	9,806 $	847 $	10,653
Income recognition time point
Revenue recognised at a point in time		$	–	$	19,204 $	2,989 $	22,193
Income recognised over time			21,472		–	–	21,472
			21,472		19,204	2,989	43,665
Less: Operating income of discontinued units	(		21,472 ) (		9,398 ) (	2,142 ) (	33,012 )
		$	–	$	9,806 $	847 $	10,653

Food &

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2020 Revenue from external client contracts Less: Operating income of discontinued units Income recognition time point Revenue recognised at a point in time Income recognised over time Less: Operating income of discontinued units	Room Revenue $ 57,650 $ ( 57,650) ( $– $ $ – $ 57,650 57,650 ( 57,650) ( $– $	Room Revenue $ 57,650 $ ( 57,650) ( $– $ $ – $ 57,650 57,650 ( 57,650) ( $– $	Beverage Income 33,726 $ 21,486) ( 12,240 $ 33,726 $ – 33,726 21,486) ( 12,240 $	Other Income 4,491 3,713) ( 778 4,491 – 4,491 3,713) ( 778	Total $ 95,867 82,849) $ 13,018 $ 38,217 57,650 95,867 82,849) $ 13,018
		$

In 2021 and 2020, the company's operations were affected by the novel coronavirus pneumonia epidemic, resulting in a decrease in the company's operating income. As of March 24, 2022 in the Republic of China, due to the impact of the subsequent control of the novel coronavirus, the amount of its impact on operating income cannot be reasonably estimated.

2. Contract liabilities

The Group recognises contract liabilities related to customer contract revenue as follows:

evenue as follows:
		Dec. 31, 2021 Dec. 31, 2020 Jan. 01, 2020
Contract liabilities:
Contract liabilities--Room	$	– $	3,084 $	3,161
Service contract
Contract liabilities--Food
Service contract		682	5,422	5,035
	$	682 $	8,506 $	8,196

Revenue recognized in the current period for contract liabilities at the beginning of the period:

The opening balance of contract liabilities is

2021 2020

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recognized as revenue in the current period

(17) Interest income Bank deposit interest $ Interest income fom financial assets measured at amortised cost Other interest income (18) Other income Rental income $ Government grants Other income -other Less: Operating income of discontinued units ( $ Room service contract Food service contract	(17) Interest income Bank deposit interest $ Interest income fom financial assets measured at amortised cost Other interest income (18) Other income Rental income $ Government grants Other income -other Less: Operating income of discontinued units ( $ Room service contract Food service contract	(17) Interest income Bank deposit interest $ Interest income fom financial assets measured at amortised cost Other interest income (18) Other income Rental income $ Government grants Other income -other Less: Operating income of discontinued units ( $ Room service contract Food service contract	(17) Interest income Bank deposit interest $ Interest income fom financial assets measured at amortised cost Other interest income (18) Other income Rental income $ Government grants Other income -other Less: Operating income of discontinued units ( $ Room service contract Food service contract
				$
						$
	$ (
			$

Due to the application of the Group's Relief and Revitalization Measures for Industries and Businesses with Operational Difficulties Affected by the Severe Special Infectious Pneumonia and the application to the Tourism Bureau of Kaohsiung City Government for the use of anti-epidemic accommodation, after review and compliance, the continuing business units will be recognized in 2021 and 2020 respectively. The government subsidy income is $3,711 and $5,151. The discontinued unit will be recognized as government subsidy income of $12,707 and $3,991 in 2021 and 2020, respectively. There are no unfulfilled conditions and other contingencies.

~43~

(19) Other benefits and losses

19)Other benefits and losses
Disposal of interests in property, plant and equipment Foreign currency exchange loss Impairment losses on non-financial assets Lease Modification Benefit Other losses Less: Other benefits and losses of closed units 20)Financial cost Interest expense Borrowings from banks Interest on lease liability Less: Finance costs of closed units	( ( (	2021 $ 2,052,593 30,649) 2,083) 14 911)( $ 2,018,964 ( 2,059,730) ($ 40,766) 2021 23,212 54 23,266 12,076) 11,190
	$
	$ ( $

(20) Financial cost

(21) Addition information on expenses

Employee benefits expenses Property, plants, and equipment Depreciation Right-of-use asset Depreciation Less: Operating costs and operating expenses of closed units	2021 $ 50,006 9,115 1,333 60,454 ( 19,322) $ 41,132		2020 $ 54,370 25,685 525 80,580 ( 29,229) $ 51,351

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(22) Employee benefit expense

Wages and salaries Health and labor insurance Pension expense Other employee benefit expense Less: Employee welfare expenses for closed units	2021 $ 43,058 4,207 2,020 721 50,006 ( 12,786) $ 37,220	2020 $ 46,257 4,911 2,512 690 54,370 ( 16,804) $ 37,566

1. In accordance with the Company's Article of Incorporation, 0.1% to 1% of the earnings of the year should be appropriated for employee compensation and no more than 1% for directors and supervisors renumeration. However, if the Corporation has accumulated deficit, the priority is to offset the deficit first.

2. The Company's 2021 and 2020 employee compensation and director compensation estimates are both $0.

The company's 2020 is a net loss before tax, so no employee remuneration and director's remuneration will be allocated.

The 2021 is based on the profit status of the year and the percentages stipulated in the articles of association as the basis for estimation. The board of directors has resolved that the actual allotment amounts are $1,671 and $0 respectively, of which employee compensation will be paid in cash. The differences in employee compensation and director compensation are $1,671 and $0, respectively, mainly due to changes in estimates and will be adjusted to profit or loss in 2022

Information on employee compensation and directors and supervisors renumeration approved by the Company's Board of Directors is posted on the Market Observation Post System.

(23) Income tax

1. Income tax expense (benefit)

• (1) Components of income tax expense (benefit) :

Current income tax: Income tax generated from current income: Tax on unappropriated earnings Overestimation of prior year income tax Total current tax Deferred income tax: Origination and reversal of temporary differences		2021 $ - 95,975 - 95,975 68,779) (	2020 $ - - ( 855) ( 855) 69,075)
	(

~45~

Less: Income tax (benefits) expenses of units that are closed Income tax expense (benefits)	(	27,196 56,629) $ 29,433		69,930 5,032 ($ 64,898)

(2) Other income tax amount related to comprehensive loss and gain:

Foreign operating agency conversion difference	2021 ($ 7,509)	2020 ($ 14,251)

2. Reconciliation between income tax expense (benefit) and accounting profit ：

Income tax calculated using net profit (loss) before tax based on statutory tax rate(Note) Income tax effects of adjustments based on income tax laws and regulations Changes in the realizability assessment of Income exempt from tax under the tax law Land value added tax Unrealized land value added tax recognized in previous years Amount of effect of provision for deferred income tax Previous income tax overestimation Less: Income tax (benefits) expenses for units that are discontinued Income tax expenses	2021 $ 370,696 1,846 ( 347,854) 95,975 ( 93,467) - 27,196 ( 56,629) $ 29,433	2020
		($ 68,048 ) 661 ( 1,688 ) - - ( 885 ) ( 69,930) 5,032 $ 64,898

Note: The basis of applicable tax rates is calculated using the income.

2. The deferred income tax assets or liabilities generated from temporary differences and tax losses are as follows ：

~46~

2021 1 Recognized in Recognized in Others January 1 Gain or loss Comprehensive income December 31 Deferred tax assets: Temporary differences: Exchange differences on translation of foreign financial statements $ 22,387$– $ 7,509 $ 29,896 Unrealized exchange loss 14,311 6,130 - 20,441 Bonus for not taking leave 239 ( 119 ) - 120 Tax losses 53,758 ( 48,453 ) - 5,305 $ 90,695 $ 42,442 $ 7,509 $ 55,762 Deferred income tax liabilities: Temporary differences: Investment income recognized under the foreign equity method ( 142,745) $ 17,754 $ - ( 124,991) Unrealized reserve for land revaluation increment tax ( 93,467) 93,467 - - ($236,212) ($ 111,221) $- ($ 124,991) ($ 145,517) ($ 68,779) $ 7,509 ($ 69,229) 2020 0 Recognized in Recognized in others January 1 Gain or loss Comprehensive Income December 31 Deferred income tax assets: Temporary differences: Exchange differences on translation of foreign financial statements $ 8,136 $– $ 14,251 $ 22,387 Unrealized exchange loss 3,809 10,502 - 14,311 Bonus for not taking leave 258 ( 19) - 239 Tax losses 44,718 9,040 - 58,758 $56,921 $ 19,523 $ 14,251 $ 90,695 Deferred income tax liabilities: Temporary differences: Exchange differences on translation of foreign financial ($ 192,297) $ 49,552 $ - ($ 142,745)			2021	2021	2021	1
			Recognized in Gain or loss $– 6,130 ( 119 ) ( 48,453 ) $ 42,442 $ 17,754 93,467 ($ 111,221) ($ 68,779)		Recognized in Others Comprehensive income $ 7,509 - - - $ 7,509 $ - - $- $ 7,509 2020
			($
		January 1 $ 8,136 3,809 258 44,718 $56,921 ($ 192,297)		Recognized in Gain or loss $– 10,502 ( 19) 9,040 $ 19,523 $ 49,552

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statements Unrealized reserve for land revaluation increment tax	( 93,467) ($ 285,467) ($ 228,843)	- ($ 49,552) $ 69,075	- $- $ 14.251	( 93,467)
				($ 236,212)
				($ 145,517)

4. The validity period of tax losses which the Company has not used and the amounts of unrecognized deferred income tax assets are provided below ：

		December 31,2021	December 31,2021				1 Year for last deduction 2020
o	Year of ccurrence Amount filed/ amount approved Deductible amount 2020 Approved amount$ 47,692		$	Undeducted amount 26,523	Unrecognized deferred income tax assets portion
					$-

			December 31, 2020						0 Year for last	0 Year for last
o	Year of ccurrence Amount filed/ amount approved Deductible amount 2013 Reassessed d $ 14,300 $ 2014 Reassessed d 3,003 2015 Approved amount 9,018 2016 Approved amount 26,590 2017 Approved amount 72,817 2018 Approved amount 56,901 2019 Amount filed 40,604 2020 Estimated amounts of filings45,556 $ 268,789 $				Undeducted amount 14,300 3,003 9,018 26,590 72,817 56,901 40,604 45,556 268,789		Unrecognized deferred
							$ $	income tax assets - - - - - - -		deduction 2023 2024 2025 2026 2027 2028 2029 2030

5. The company's profit-seeking business income tax has been approved by the tax collection authority until 2010.

(24) Earnings (loss) per share

	2021		1
		Weighted average of	Earnings per share
		Outstanding shares
	Amount after tax	(1,000shares)	(NT$)
Basic earnings per share
Current net income
attributable to the common
stock shareholders
of the parent company	($ 153,931)	110,486	($ 1.39)

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Net profit for the period
attributable to the
discontinued unit of the
parent company owner			1,980,213				110,486			17.92
Net profit for the period
attributable to owners of the
parent company		$	1,826,282				110,486		$	16.53
				2020						0
						Weighted average of			Earnings per share
		Amount		after		Outstandingshares
			tax				(1,000shares)		(NT$))
Basic loss per share
Current net income
attributable to the common
stock shareholders
of the parent company	($		251,381 )				110,486		($ 2.28 )
Net loss for the current
period attributable to the
closed business unit of the
owner of the parent
company	(		18,928 )				110,486		( 0.17 )
Net loss for the period
attributable to owners of
the parent company	($		270,309 )				110,486		($ 2.45 )
(25)Supplementary information on				cash	flow
1. Investing activities with only partial cash receipts								and payments:
				2021				2020
Purchase of real estate, plant and equipment		$				6,244 $			1,599
Add: Accounts payable at the
beginning of the period-land
destination change deposit					127,577				127,577
(listed as "long-term bills and
payments payable)"
Minus: other accounts payable at
the end of the period - cash for change of destination (listed in							– (		127,577 )
"long-term bills and payments")

~49~

Equipment payable at the end of the period ("Other payables" in ( 2,859 ) – the table) Cash payment in the current $ 130,962 $ 1,599 period

2. Financing activities that do not affect cash flow:

==> picture [361 x 53] intentionally omitted <==

(26)Change of liabilities from financing activities

January 1 Change of cash flows from Financing activities Other change of non cash December 31	Short-term borrowings $1,609,599 ( 725,599) - $ 884,000	Short-term notes payable $ 130,000 ( 100,000) - $ 30,000	Lease Liabilities $ 3,407 ( 1,307) 8,525 $ 10,625	Long-term liabilities $ 32,545 ( 18,597) - $ 13,948	Total liabilities from financing activities $ 1,775,551 ( 845,503) 8,525 $ 938,573

			2020
January 1 Change of cash flows from Financing activities December 31	Short-term borrowings $1,530,000 79,599 - $1,204,500	Short-term notes payable $ 130,000 - - $ 130,000	Lease Liabilities $ 1,975 ( 516) 1,948 $ 3,407	Long-term liabilities $108,206 ( 75,661) - $ 32,545	Total liabilities from financing activities
					$ 1,770,181 3,422 1,948 $ 1,775,551

Note: Non-cash changes arising from the increase, disposal and lease modification

of right-of-use assets.

7. Transactions with related parties

(1) Name of the related parties and their relations with the Company

Name of the related parties and their relations with the Company Holiday Garden International Ltd. Subsidiaries directly held by the Company (“Int. Ltd.”) Holiday Garden Development Co., Ltd. Subsidiaries directly held by the Company

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Holiday Garden U.S. Subsidiaries directly held by Int. Ltd. (“US”) Holiday Garden SF CORP. Subsidiaries directly held by U.S. (“SF CORP.) Holiday Garden NW CORP. Subsidiaries directly held by U.S. (“NW CORP.) Holiday Garden VC CORP. Subsidiaries directly held by U.S. (“VC CORP.) Holiday Garden WC CORP. Subsidiaries directly held by U.S. (“WC CORP.) Holiday Garden EV CORP. Subsidiaries directly held by U.S. (“EV CORP.) Holiday Garden FM CORP. Subsidiaries directly held by U.S. (“FM CORP.)

• (2) Material Transactions with related parties

• Income from management services ("Other Income" in the table)

2021 2020 Holiday Garden Development Co., Ltd. $ 1,200 $ 500

2. Primary management renumeration and Short-term employee benefits	compensation information 2021 2020 $ 3,850 $ 3,332

1. Collateralized assets

The Company's collateralized assets are listed below:

Assets Land Buildings and structures Time deposits: (Stated in “Other financial asset - current”) Time deposits: (Stated in “Other financial asset - current”)	Book value December 31, 2021 $ – – 957,921 368 $ 958,289	December 31, 2020 $ 481,493 161,188 971,578 1,927 $ 1,616,186	For guarantee purposes
			Short-term and long-term borrowings Short-term and long-term borrowings Short-term borrowings Voucher performance guarantee

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9. Significant contingent liabilities and unrecognized contractual commitments

(1)Contingency

None

(2)Undertakings

No undertakings

10. Significant casualty losses

None

11. Major events after the reporting period

None

12.Others

(1) Capital management

The Company’s capital management objectives are to secure the Company’s ability to continue as a going concern, maintain the optimal capital structure for reducing the cost of capital, and to provide returns to our shareholders. To maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, or issue new shares or sell assets to reduce the liabilities. Consistent with the industry’s practice, the Company manages the assets by the debt to assets ratio.

The Company's strategy is to maintain a stable debt to assets ratio. See below for the ratios. ：

Total liabilities Total assets Debt to assets ratio	December 31, 2021 $ 1,088,050 $ 3,846,248 28	December 31, 2020 $ 2,169,657 $ 3,131,608 69

(2) Financial instruments

1. Types of financial instruments

Financial assets Financial assets measured at amortized cost Cash and cash equivalents Financial assets measured at amortized Notes receivable Accounts receivable Other accounts receivable Guarantee deposits paid	December 31, 2021 $ 1,267,737 966,700 323 1,376 92 1,156 $ 2,237,384	December 31, 2020 $ 60,874 973,505 – 4,099 141 733 $ 1,039,352

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Financial assets Financial assets measured at Short-term borrowings Short-term notes and bills Notes payable Accounts payable Other accounts payable Long-term borrowings (including Long-term notes and accounts Guarantee deposits received Lease liabilities	Financial assets Financial assets measured at Short-term borrowings Short-term notes and bills Notes payable Accounts payable Other accounts payable Long-term borrowings (including Long-term notes and accounts Guarantee deposits received Lease liabilities	December 31, 2021 $ 884,000 30,000 946 22,544 13,948 – 181 $ 951,619 $ 10,625	December 31, 2020 $ 1,609,599 130,000 3,140 15,183 32,545 127,577 755 $ 1,918,799 $ 3,407

• 2 . Financial instruments not measured at fair value

The Company’s financial assets and liabilities that are not assessed by fair value (including cash and cash equivalents, notes receivable, accounts payable, other receivable, other financial assets (current), refundable deposits, shortterm borrowings, short-term notes payable, notes payable, accounts payable, other payable, long-term borrowings (including current portion of long-term debt payable), long-term notes and accounts payable, and guarantee deposits receive) have a carrying value reasonably close to their fair value.

1. Risk management policies

2. (1) The Company's regular operations are affected by multiple financial risks, including market risk (including the foreign exchange rate risk, interest rate risk, and price risk), credit risk, and liquidity risk.

3. (2) Risk management work is implemented by the Company's finance department in accordance with the approved policies. The Company's finance department closely collaborates with all operating departments for identifying, evaluating, and avoiding financial risk.

4. Nature and level of significant financial risk

5. (1) Market risk

Foreign exchange rate risk

• A. The Company’s investment in subsidiaries exposes the Company to foreign exchange rate risk generated from transactions using currencies different from the Company’s functional currency (primarily the US dollars). Foreign exchange rate related risk comes from future commercial transactions and recognized assets and liabilities.

~53~

• B. The Company’s management has set policies requiring the Company to manage the foreign exchange rate risk related to its functional currency. The Company should manage the risk according to the overall foreign exchange rate risk through the finance department.

• C. The Company's businesses involve several non-functional currencies (The Company’s functional currency is New Taiwanese Dollars), and they are affected by exchange rate fluctuation. Information of foreign currency assets and liabilities subject to material effect of exchange rate fluctuation is presented below:

~54~

December 31, 2021 Sensitivity analysis Foreign currencies (NT$1,000) Exchange rate Carrying amount (NT$) Degree of variation Effect onprofit or loss (Foreign currency: functional currency) Financial assets Currency item US$ : NT$ $ 57,222 27.68 $ 1,583,898 1% $ 15,839 Long-term investments accounted for using the equity method US$ : NT$ 53,931 29.98 1,492,819 1% - 按一下這裡以輸入文字。 December 31, 2020 Sensitivity analysis Foreign currencies (NT$1,000) Exchange rate Carrying amount (NT$) Degree of variation Effect onprofit or loss (Foreign currency: functional currency) Financial assets Currency item US$ : NT$ $ 35,157 28.48 $ 1,001,271 1% $ 10,013 Long-term investments accounted 45,101 28.48 1,284,466 1% -	December 31, 2021 Sensitivity analysis Foreign currencies (NT$1,000) Exchange rate Carrying amount (NT$) Degree of variation Effect onprofit or loss (Foreign currency: functional currency) Financial assets Currency item US$ : NT$ $ 57,222 27.68 $ 1,583,898 1% $ 15,839 Long-term investments accounted for using the equity method US$ : NT$ 53,931 29.98 1,492,819 1% - 按一下這裡以輸入文字。 December 31, 2020 Sensitivity analysis Foreign currencies (NT$1,000) Exchange rate Carrying amount (NT$) Degree of variation Effect onprofit or loss (Foreign currency: functional currency) Financial assets Currency item US$ : NT$ $ 35,157 28.48 $ 1,001,271 1% $ 10,013 Long-term investments accounted 45,101 28.48 1,284,466 1% -	December 31, 2021 Sensitivity analysis Foreign currencies (NT$1,000) Exchange rate Carrying amount (NT$) Degree of variation Effect onprofit or loss (Foreign currency: functional currency) Financial assets Currency item US$ : NT$ $ 57,222 27.68 $ 1,583,898 1% $ 15,839 Long-term investments accounted for using the equity method US$ : NT$ 53,931 29.98 1,492,819 1% - 按一下這裡以輸入文字。 December 31, 2020 Sensitivity analysis Foreign currencies (NT$1,000) Exchange rate Carrying amount (NT$) Degree of variation Effect onprofit or loss (Foreign currency: functional currency) Financial assets Currency item US$ : NT$ $ 35,157 28.48 $ 1,001,271 1% $ 10,013 Long-term investments accounted 45,101 28.48 1,284,466 1% -	Effect on other comprehensive income $ - 14,928 Effect on other comprehensive income
			$ - 12,845

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• D. In 2021 and 2020, the aggregate amounts of all exchange losses (including realized and unrealized) of the Company's monetary items due to exchange rate fluctuations that have a significant impact are $30,649 and $52,470, respectively.

Price risk

。 The Company is not exposed to significant commodity price risk

  - Cash flows and fair value interest rate risk

  - `A.` The Company's interest rate risk arises from short-term and long-term borrowings at floating rates, exposing the Company to cash flow interest rate risk. As of December 31, 2021 and 2020, the Company's borrowings with floating interest rates are in New Taiwan Dollars.

  - B. The Company’s loans are measured at amortized cost and the interest rates are re-set each year according to the contract. Therefore, the Company is exposed to the risk of future market interest rate changes.

  - C. When the borrowing rate increases or decreases by 1%, and all other factors remain unchanged, the net profit before tax in 2021 and 2020 will decrease or increase by $8,979 and $16,421 respectively, mainly due to the change in interest expense due to floating rate borrowings caused.

• (2) Credit risk

• A.The Company is exposed to credit risk of customers’ failure of fulfilling their contractual obligations, which can expose the Company to financial losses. The primary source of credit risk is the counterparty's failure of paying accounts receivable according to the terms of payment.

• B.The Company has to manage and perform credit risk analysis in accordance with the internal credit policy before entering into the terms and conditions of payment and service rendering with each new customer. Internal risk control evaluates a customer's credit quality based on the customer’s financial condition, past experience, and other factors.

• C. The Company adopts the premise provided by IFRS9: When a payment is 30 days past due according to the contractual terms and conditions, the credit risk of this financial asset is deemed to have increased significantly since its initial recognition.

• D. The Company adopts the premise provided by IFRS9: When a payment is more than 90 days past due according to the contractual terms and conditions, default is deemed to have happened.

• E. The Company classifies customers’ notes and accounts receivable

~56~

according to credit conditions and adopts a simplified method that uses the loss rate as the basis for estimating the expected credit loss.

• F. The company's forward-looking consideration of the future adjusts the loss rate established by historical and current information for a specific period to estimate the provision loss for bills receivable and accounts receivable. The provision matrix for 2021 and December 31, 2020 is as follows

follows
December 31, 2018 Expected loss rate Total book value Loss allowance	Not past due and past due for 1 to 30days Past 0.34% $ 1,299 –	Past	due for 31 to	Past	due for more than 91 days Total 100.00% $ 29 $ 1,729 29 30
	$

December 31, 2018 Expected loss rate Total book value Loss allowance	Not past due and past due for 1 to 30 days 0.34% $ 2,244 1	Not past due and past due for 1 to 30 days 0.34% $ 2,244 1	Past	due for 31 to 90 days 0.81% 1,859 3	Past	due for more than 91 days 100% 568 $ 568	Total 4,671 572
					$
		$	$

• G. The statement of changes in the allowance for loss on accounts receivable using the simplified method is as following

January 1 Impairment loss provision Impairment loss reversal of discontinued units December 31	2021 $ 572 – ( 542) $ 30	2020 $ 125 447 – $ 572

(3) Liquidity risk

• A. A. Cash flows forecasts are performed by each operating entity of the Company and summarized by the finance department of the Company. The Company’s finance department monitors the Company's circulating capital requirements to ensure that the Company has sufficient capital for its operating needs, and a sufficient unspent loan commitment is maintained

~57~

at all times.

• B. When the residual cash held by each operating entity exceeds the amount of operating capital required for management, it shall be transferred back to the finance department of the Company. The Company’s finance department will invest the residual funds in demand deposits, checking deposits, and time deposits, and the selected instruments have a proper due date or an adequate liquidity in order to meet the above-mentioned forecasts and ensure that the Company has sufficient liquidity to fund the requirements. At December 31, 2021 and 2020, the Company’s money market position was NT$1,267,317 and NT$59,786 respectively, and they can generate immediate cash flows for liquidity risk management.

• C. The following table shows the Company's non-derivative financial liabilities, which are classified by the maturity date. Non-derivative financial liabilities are analyzed based on the time remains from the balance date to the contractual maturity date. The following table discloses the amount of contractual cash flows that is non-discounting.

	December 31, 2021 Non-derivitive financial liabilities: Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Other accounts payable Lease obligation Long-term borrowings (including the current portion of long-term debt payable) Long-term notes and accounts payable Guarantee deposits received Derivative financial liabilities: None		In 1 year $ 885,289 30,000 946 22,544 3,110 14,055 144 In 1 year $ 1,611,948 130,000 3,140 15,183	1 to 2 years $ - - - - 3,985 - - 1 to 2 years $ - - - -	More than 2 years $ - - - - 3,823 - 37 More than 2 years $ - - - -	More than 2 years $ - - - - 3,823 - 37 More than 2 years $ - - - -
					$
	December 31, 2020 Non-derivitive financial liabilities: Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Other accounts payable
						$

~58~

Lease obligation	1,331	1,306	842
Long-term borrowings (including the
current portion of long-term debt payable)	18,978	14,048	–
Long-term notes and accounts payable	-	–	127,577
Guarantee deposits received	393	-	362
Derivative financial liabilities: None

13. Supplementary disclosure

(1) Information related to material transactions

1. Financing provided: See Table 1 attached.

2. 。

3. 1. Endorsement provided: None

4. 3.Marketable securities held at closing period (excluding investments in subsidiaries, associates, and joint ventures): None

4. Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: See Table 2 attached

5. Properties acquired at costs or prices of at least NT$300 million or 20% of the

  - paid-in capital: See Table 3 attached.

6. Properties disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: None

7. Total purchases from or sales to related parties of at least NT$100 million or 20% of the paid-in capital: None.

8. Receivable from related parties amounting to at least NT$100 million or 20% of the paid-in capital: See Table 4 attached

1. Engagement in derivative instruments: None.

2. 10.Business relations and material transactions and amounts between the parent company and its subsidiaries and among the subsidiaries: See Table 5.

3. (2) Re-investment related information

The investee's name, location, and other related information (excluding investees in mainland China): See Table 6.

(3) Investment in mainland China

1. Basic information: None

1. Significant direct or indirect transactions with the investee in mainland China through an enterprise at a third place: None

2. (4) Information of major shareholders

Information of major shareholders: Please refer to Schedule 7 for details.

~59~

14. Segment information

Not applicable

~60~

Table 1

Holiday Garden International Ltd. and subsidiaries

Loan funds

January 1,2021 to December 31,2021

Unit: NT$1,000

No. (Note.1) Company providing the loan Borrower Transaction item(Note2) A related party yes or not The maximum amount of this period(Note3) Closing balance (Note 8) Actualdrawing amount Range of interest rate 1 Holiday Garden International Ltd. Holiday Garden U.S. Receivable from related companies yes $ 1,448,560 $ 1,448,560 $ 1,054,242 Annual interest 6.5% 2 Holiday Garden U.S. Holiday Garden NW CORP. Receivable from related companies yes 240,870 240,870 92,520 Annual interest 3.0% 2 Holiday Garden U.S. Holiday Garden VC CORP. Receivable from related companies yes 194,610 194,610 46,260 Annual interest 3.0% 2 Holiday Garden U.S. Holiday Garden WC CORP. Receivable from related companies yes 584,820 584,820 429,370 Annual interest 6.5% 2 Holiday Garden U.S. Holiday Garden WC CORP. Receivable from related companies yes 64,980 64,980 64,980 Annual interest 3.0% 2 Holiday Garden U.S. Holiday Garden EV CORP. Receivable from related companies yes 94,950 94,950 31,650 Annual interest 6.5% 2 Holiday Garden U.S. Holiday Garden EV CORP. Receivable from related companies yes 953,680 559,362 559,362 Annual interest 6.5% 2 Holiday Garden U.S. Holiday Garden EV CORP. Receivable from related companies yes 84,030 84,030 84,030 Annual interest 6.5% 2 Holiday Garden SF U.S. Holiday Garden FM CORP. Receivable from related companies yes 430,900 430,900 430,900 Annual interest 3.0% 3 Holiday Garden SF SF CORP. Holiday Garden VC CORP. Receivable from related companies yes 154,200 154,200 – Annual interest 3.0% 3 Holiday Garden SF SF CORP. Holiday Garden U.S. Receivable from related companies yes 387,516 387,516 387,516 Annual interest 3.0%	Type of loan fund (Note 4) Business transaction amount (Note 5) Reasons for short-term financing (Note6) Short-term financing funds $ - Operational needs Short-term financing funds - Hotel acquisition Short-term financing funds - Hotel acquisition Short-term financing funds - Hotel acquisition Short-term financing funds - Hotel acquisition Short-term financing funds - Operational needs Short-term financing funds - Hotel acquisition Short-term financing funds - Operational needs Short-term financing funds -Hotelacquisition Operationalneeds Short-term financing funds - Hotel acquisition Short-term financing funds - Operational needs	Recognized amount of loss allowance $ - - - - - - - - - -	Collaterals Name Value None $ - None - None - None - None - None - None - None - None - None - None -	(Unless otherwise noted) Maximum amount of loans permitted to a single borrower(Note 7) Total amount permitted for loaning of funds （Note 7） Note $ 74,640,950 $ 149,281,900 Note 9 11,924,650 23,849,300 Note 9 11,924,650 23,849,300 Note 9 11,924,650 23,849,300 Note 9 11,924,650 23,849,300 Note 9 11,924,650 23,849,300 Note 9 11,924,650 23,849,300 Note 9 11,924,650 23,849,300 Note 9 11,924,650 23,849,300 Note 9 6,843,350 13,686,700 Note 9 6,843,350 13,686,700 Note 9

Note 1: See the footnotes below

 (1) 0 for the Company

 (2) For the investees, they are coded from 1 according to the company. Investees of the same company share the same code

Note 2: Recorded accounts receivable from related companies and/or parties, shareholders accounts, prepayments, temporary payments, etc. should be entered in this field if they are related to loans to others.

Note 3: It is the cumulative maximum balance of loaning others from the current year to the reporting month.

Note 4: For loans to others and the type, fill in the parties that the Company has business transaction with or that require short-term financing funds.

Note 5: For the business transaction type of loans, fill in the amount of the business transactions.

Note 6: For those requiring the short-term financing type of loans, concretely explain the reason for loaning and the borrowers ’ use of the loans, such as for making repayments, purchase of equipment, or operational needs ： Note 7: Enter the limit of loans for individual borrowers and the total amount of loans set by the Company in accordance with the loans to others operating procedure and enter the method of calculation of the limit of loan for individual borrowers and the total limit of loans in the note section.

Note 8: Enter the amount of funds loaned to others that remains effective as of the reporting month. (For an publicly listed company deciding to resolve each fund to be loaned to other at the Board of Directors according to Article 14.1 of the
Procedure of Management of Loans to Others, then even if the fund has not yet been appropriated, the amount of loans resolved at the Board of Directors should be stated in the announced balance to disclose the exposed risk.If said funds are
repaid later, the balance after the repayment should be disclosed to reflect the adjusted risk. If, in accordance with Article 14.2 of Regulations Governing the Administration of Shareholder Services of Public Companies, a publicly listed
company decides to authorize the chairperson of the board, resolved at the board of directors, to have the funds for lending that are within the specific amount authorized in installment or revolver within one year, it is the balance of the
amount of loans to others approved at the Board of Directors that should be announced and filed. Said loans to others may be repaid later, but because lending may be authorized again, use the amount of loans to others approved by the Board of
Directors as the balance announced and reported.

Note 9: In accordance with the Company's Operating procedure of management of loans to others, the amount of loans to foreign subsidiaries, in which the Company holds directly or indirectly, 100% of the voting shares or to individual borrowers
should not exceed 7.5 times of the Company's net value, and the total amount of loans should not exceed 15 times of the net value of the company, and the duration of loans should be no more than 15 years.

~61~

Holiday Garden Hotel Co., Ltd.

Properties disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital
January 1,2021 to December 31,2021

Table 2

  Unit: NT$1,000

Table 2					Unit: NT$1,000
Company which acquired properties property name OccuringDate Holiday Garden EV CORP. SpringHill Suites by Marriott San Jose Fremont旅館 110/12/09	Transaction amount $ 964,411	Payment of price $ 964,411	Transaction	Relationship None-related parties	Holder Relationship with issuer - -	(Unless otherwise noted) The former tranfer information of transaction object is related party Transfer daye Amount reference of priceBasis purpose of acquirsition other appointment - $ - Valuation report Operating the food and hotel business in U.S.A None
			object MILLENNIUM HOTEL INC.

Note 1: If appraisal is required for asset disposal in accordance with the regulations, enter the appraisal results in the section “Reference for price determination. ”

Note 2: Paid-in capital refers to the paid-in capital of the parent company. If the shares issued by an issuer have no par value or a par value
other than NT$10 per share, the threshold transaction amount of 20% of paid-in capital shall be replaced by 10% of equity attributable to owners of
the parent company as stated in the balance sheet.

Note 3: Date of occurrence refers to the date of contract signing, date of payment, date of consignment trade, date of transfer, dates of boards of
directors resolutions, or other date that can confirm the counterparty and monetary amount of the transaction, whichever date is earlier.

~62~

Holiday Garden International Ltd. and subsidiaries

                                                             Properties acquired of at costs or prices of at least NT$300 million or 20% of the paid-in capital

January 1,2021 to December 31,2021

Ta bl e 3

[Disposal ] Reference Company Date of Original Amount of Price profit and basis for disposing of Property fact date of Carrying the collection loss Trading Punishment price Other real estate name (Note 1) acquisition amount transaction situation (Note 2) partners Relation purpose determination agreements

Referring to
The price market
is charged conditions
according and obtaining
The real to the two real
Holiday estate at conditions estate
Yongshuo According
Garden the current agreed in appraisal
 May 05,2021  Jul.29,1959  $642,673 2.7 billion $1,960,037 Investment None to business None
International location of the sales reports, the
Co., Ltd. strategy
Ltd. Liuheguan's and appraisal
operation purchase results are
agreement about 2.34
of both billion and
parties 2.45 billion
respectively.

Note 1: If appraisal is required for asset disposal in accordance with the regulations, enter the appraisal results in the section “Reference for price determination. ”

Note 2: Paid-in capital refers to the paid-in capital of the parent company. If the shares issued by an issuer have no par value or a par value other than NT$10 per share, the threshold transaction amount of 20% of paid-in
capital shall be replaced by 10% of equity attributable to owners of the parent company as stated in the balance sheet.

Note 3: Date of occurrence refers to the date of contract signing, date of payment, date of consignment trade, date of transfer, dates of boards of directors resolutions, or other date that can confirm the counterparty and
monetary amount of the transaction, whichever date is earlier.

~63~

Holiday Garden International Ltd. and subsidiaries

Receivable from related parties amounts to at least NT$100 million or 20% of the paid-in capital.
January 1,2021 to December 31,2021

Table 4 Companies of account receivable Holiday Garden International Ltd. Holiday Garden U.S. Holiday Garden SF CORP. Holiday Garden U.S. Holiday Garden WC CORP. Holiday Garden EV CORP. Holiday Garden U.S.	Transaction object name Holiday Garden U.S. Holiday Garden WC CORP. Holiday Garden U.S. Holiday Garden EV CORP. Holiday Garden SF CORP. Holiday Garden SF CORP. Holiday Garden FM CORP.	Relationship Balance of Receivable from related companies (Note 1) Note 3 Account receivable：1,063,466 Note 3 Account receivable：465,301 Note 3 Account receivable：367,784 Note 3 Account receivable：680,478 Note 3 Account receivable：141,205 Note 3 Account receivable：125,684 Note 3 Account receivable：487,608	Unit: NT$1,000 (Unless otherwise noted) Turnover rate Past due accounts receivable from relatedAccounts receivable recovered from related companies after the reporting period Amount of loss allowance recognized Amount Treatment Note 4 $ - - $ - $ - Note 4 - - - - Note 4 - - - - Note 4 - - - - Note 4 - - - - Note 4 - - - - Note 4 - - - -

Note 1: Please enter the accounts receivable of the related parties, the notes, and other accounts receivable.

Note 2: Paid-in capital refers to the paid-in capital of the parent company. If the shares issued by an issuer have no par value or a par value other than NT$10 per share, the threshold transaction
amount of 20% of paid-in capital shall be replaced by 10 percent of equity attributable to owners of the parent company as stated in the balance sheet.
Note 3: The investee and the counterparty are both subsidiaries of the Company.

Note 4: It is mainly because that “other accounts receivable ” is not suitable for calculating the days of turnovers.

~64~

Holiday Garden International Ltd. and subsidiaries

Business relations and material transactions and amounts between the parent company and its subsidiaries and among the subsidiaries

January 1,2021 to December 31,2021

Table 5 Number (Note 1) 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 3 3	Name Holiday Garden International Ltd. Holiday Garden International Ltd. Holiday Garden International Ltd. Holiday Garden International Ltd. Holiday Garden International Ltd. Holiday Garden International Ltd. Holiday Garden International Ltd. Holiday Garden International Ltd. Holiday Garden International Ltd. Holiday Garden International Ltd. Holiday Garden International Ltd. Holiday Garden International Ltd. Holiday Garden U.S. Holiday Garden U.S. Holiday Garden U.S. Holiday Garden U.S. Holiday Garden U.S. Holiday Garden U.S. Holiday Garden U.S. Holiday Garden SF CORP. Holiday Garden SF CORP.	Counterparty Relationship with the counterparty (Note 2) Holiday Garden U.S. (3) Holiday Garden U.S. (3) Holiday Garden SF CORP. (3) Holiday Garden SF CORP. (3) Holiday Garden NW CORP. (3) Holiday Garden NW CORP. (3) Holiday Garden VC CORP. (3) Holiday Garden VC CORP. (3) Holiday Garden WC CORP. (3) Holiday Garden WC CORP. (3) Holiday Garden EV CORP. (3) Holiday Garden EV CORP. (3) Holiday Garden NW CORP. (3) Holiday Garden WC CORP. (3) Holiday Garden WC CORP. (3) Holiday Garden VC CORP. (3) Holiday Garden EV CORP. (3) Holiday Garden EV CORP. (3) Holiday Garden FM CORP. (3) Holiday Garden U.S. (3) Holiday Garden U.S. (3)			Unit: NT$1,000 (Unless otherwise noted) Transaction condition Transaction conditions Ratio to consolidated total revenue or totalassets (Note 3) Processed according to the agreement between the two parties 12.36% Processed according to the agreement between the two parties 7.25% Processed according to the agreement between the two parties 0.29% Processed according to the agreement between the two parties 1.48% Processed according to the agreement between the two parties 0.29% Processed according to the agreement between the two parties 1.48% Processed according to the agreement between the two parties 0.29% Processed according to the agreement between the two parties 1.48% Processed according to the agreement between the two parties 0.29% Processed according to the agreement between the two parties 1.48% Processed according to the agreement between the two parties 0.24% Processed according to the agreement between the two parties 1.48% Processed according to the agreement between the two parties 0.96% Processed according to the agreement between the two parties 5.40% Processed according to the agreement between the two parties 2.97% Processed according to the agreement between the two parties 0.48% Processed according to the agreement between the two parties 7.91% Processed according to the agreement between the two parties 4.42% Processed according to the agreement between the two parties 5.66% Processed according to the agreement between the two parties 4.27% Processed according to the agreement between the two parties 1.27%
			Account Other accounts receivable Interest income Other income Interest income Other income Interest income Other income Interest income Other income Interest income Other income Interest income Other income Other income Interest income Other income Other income Interest income Other income Other income Interest income	Amount $1,063,466 61,902 24,912 12,605 24,912 12,605 24,912 12,605 24,912 12,605 20,760 12,605 83,040 465,301 25,349 41,520 680,478 37,779 487,608 367,784 10,840

~65~

4	Holiday Garden VC CORP.	Holiday Garden SF CORP.	(3)	Other income	54,225	Processed according to the agreement	0.63%
						between the two parties
5	Holiday Garden NW CORP.	Holiday Garden SF CORP.	(3)	Other income	25,565	Processed according to the agreement		0.30%
						between the two parties
6	Holiday Garden WC CORP.	Holiday Garden SF CORP.	(3)	Other income	141,205	Processed according to the agreement		1.65%
						between the two parties
7	Holiday Garden EV CORP.	Holiday Garden SF CORP.	(3)	Other income	125,684	Processed according to the agreement		1.46%
						between the two parties
8	Holiday Garden FM CORP.	Holiday Garden SF CORP.	(3)	Other income	57,281	Processed according to the agreement		0.67%
						between the two parties

Note 1: Business transaction information between the parent company and its subsidiaries should be coded in the coding section, and the coding is described below.

(1) 0 for the parent company.

(2) For the subsidiaries, they are coded starting from 1 based on the company

Note2: There are the following three types of relationship with counterparties, and only the type is specified (one disclosure for the same transaction between the parent company and a subsidiary or
among subsidiaries). For example, for a transaction between the parent company and a subsidiary, if the parent company has already disclosed it, there is no need for the subsidiary to disclose the same
transaction again. For transactions among subsidiaries, if one subsidiary has disclosed it already, then there is no need for the other subsidiary to disclose it again.)

(1) The parent company to a subsidiary

(2) A subsidiary to the parent company

• (3) A subsidiary to another subsidiary

Note 3: Regarding the ratio of transaction amount to consolidated total operating revenues or total assets, it is computed based on the closing balance to consolidated total assets for balance sheet
accounts,

and as for income statement accounts, it is based on accumulated amount to consolidated total operating revenue

Note 4: The significant transaction conditions summarized in this table are transactions of an amount greater than NT$ 5 million or 20% of the paid-in capital of the parent company.

~66~

Holiday Garden International Ltd. and subsidiaries

The investee's name, location, and other related information (excluding investees in mainland China)
January 1,2021 to December 31,2021

Table 6 Holiday Garden Holiday Garden Holiday Garden Holiday Garden Holiday Garden Holiday Garden Holiday Garden Holiday Garden Holiday Garden	Investor International Ltd. International Ltd. International Ltd. U.S. U.S. U.S. U.S. U.S. U.S.	Investee (Notes 1 and 2) Holiday Garden International Holiday Garden International Holiday Garden U.S. Holiday Garden SF CORP. Holiday Garden NW CORP. Holiday Garden VC CORP. Holiday Garden WC CORP. Holiday Garden EV CORP. Holiday Garden FM CORP.	Location Primary business items Taiwan Tourism hotels Bermuda Investment business USA Investment business USA Tourism hotels USA Tourism hotels USA Tourism hotels USA Tourism hotels USA Tourism hotels USA Tourism hotels	Initial investment amount Ending of reporting period Previous year end $ 65,000 $ 65,000 977,650 642,980 585,961 251,291 84,662 84,662 81,250 81,250 81,250 81,250 80,700 80,700 77,188 77,188 69,263 -	Initial investment amount Ending of reporting period Previous year end $ 65,000 $ 65,000 977,650 642,980 585,961 251,291 84,662 84,662 81,250 81,250 81,250 81,250 80,700 80,700 77,188 77,188 69,263 -	Unit: NT$1,000 (Unless otherwise noted) End of the reporting period Investee’s current profit and loss (Notes 2(2)) Recognized current investment gain or loss (Note 2(3)) Note Number of shares Ratio Carrying amount 6,500 100 $ 36,485 ($ 11,364) ($ 11,364) The Company's subsidiary 12,000 100 1,492,819 ( 88,773 ) ( 88,773 ) The Company's subsidiary 18,000 100 238,493 ( 125,434 ) ( 125,434 ) The Company's subsidiary 170,000 100 136,867 8,852 8,852 The Company's subsidiary 150,000 100 22,981 ( 15,573 ) ( 15,573 ) The Company's subsidiary 150,000 100 ( 23,686) ( 10,690 ) ( 10,690 ) The Company's subsidiary 150,000 100 ( 207,437) ( 55,661 ) ( 55,661 ) The Company's subsidiary 150,000 100 ( 240,695) ( 83,189 ) ( 83,189 ) The Company's subsidiary 150,000 100 58,430 59,127 59,127 The Company's subsidiary
				Ending of reporting period $ 65,000 977,650 585,961 84,662 81,250 81,250 80,700 77,188 69,263
					$ 65,000 642,980 251,291 84,662 81,250 81,250 80,700 77,188 -

Note 1: For a publicly company with an overseas holding company and using the consolidated financial report as the major financial report in compliance with local laws and regulations,
the disclosure of information of overseas investees can be limited to information related to the holding company.

Note 2: If the circumstances described in Note 1 are not applicable, please enter the following information:

• (1) For the name of the investee, the location, the primary business items, the initial investment amount, and shareholding at the end of the period, they should be filled out in sequence according to the reinvestment of the Company (a publicly listed company) and each reinvestment of each direct or indirect controlled investee. In addition, the relationship

• (e.g., a subsidiary or a subsidiary-subsidiary of the parent company) between each investee and the Company (a publicly listed company) should be entered.

• (2) For the section of “investee ’ s profit and loss, ” please enter the amount of current profit and loss of each investee.

• (3) For “Recognized current investment income, ” enter only the recognized amount of profit and loss of each direct investment subsidiary of the Company (a publicly listed company) and of each investee accounted for using the equity method. The balance is not required. When entering the “Amount of profit and loss recognized of each subsidiary of direct reinvestment, ” subsidiary of the Company (a publicly listed

• company) and of each investee accounted for using the equity method. The balance is not required. When entering the “Amount of profit and loss recognized of each subsidiary of direct reinvestment, ”

          make sure that the amount of profit or loss of each subsidiary includes the investment income of the reinvestment to be recognized in accordance with the regulations.

~67~

Table 7

Holiday Garden International Ltd. and subsidiaries

Major Shareholder Information
January 1,2021 to December 31,2021

                             Shares
                                             Main shareholder name                                                                                  Shares held               Shareholding ratio
YENJUAN INTERNATIONAL CO., LTD.                                                                                                                       21,427,377                             19.39%
CATHAY UNITED BANK is entrusted with custody of GIPPER CO., LTD. investment account                                                                   10,908,482                              9.87%
CATHAY UNITED BANK is entrusted with custody of ESSIDIY Co., Ltd. investment account                                                                  10,485,338                              9.49%
CATHAY UNITED BANK is entrusted with custody of CHUN TAO KOO (HOLDINGS) LTD. investment account                                                       10,361,288                              9.37%
CATHAY UNITED BANK is entrusted with custody of KDX HOLDING LTD. investment account                                                                    8,748,960                              7.91%

~68~

 List 1.

Holiday Garden International Ltd. and subsidiaries
Statement of Cash and Cash Equivalents
January 1,2021 to December 31,2021

Unit: NT$1,000

Project Summary Cash on hand and working capital $ Check Deposit Current Deposit - NTD Deposit Current Deposit - USD Deposit USD 22,615,000，Exchange rate 27.68 Demand Deposit - Singapore Deposit SGD 333.57，Exchange rate 20.46 $	Amount 420 4,893 636,440 625,977 7
	1,267,737

~69~

Holiday Garden International Ltd. and subsidiaries Financial Assets at Amortised Cost - Current Statement January 1,2021 to December 31,2021

 List 2

Name	Summary	Contract Period Amount — $ 368 2021.09.11~2022.03.11 5046 2021.09.12~2022.03.12 407 2021.10.28~2022.04.28 2,958 2021.12.27~2022.01.27 423,095 2021.12.08~2022.04.08 417,732 2021.10.29~2022.04.29 1,384 2021.10.28~2022.04.28 115,710 $ 966,700	Amount	Unit: Interest Rate	NT$1,000 Remark
Cathay United Bank O-Bank O-Bank O-Bank O-Bank CTBC BANK Co., Ltd CTBC BANK Co., Ltd CTBC BANK Co., Ltd	NTD survive NTD Time Deposit NTD Time Deposit NTD Time Deposit USD Time Deposit USD Time Deposit USD Time Deposit USD Time Deposit			— 0.17% 0.59% 0.53% 0.20% 0.12% 0.19% 0.20%	Note Note Note Note Note Note Note Note

 Note: For information on guarantees for financial assets measured at amortised cost, please refer to Note 8

~70~

Holiday Garden International Ltd. and subsidiaries Statement of Changes in Investments Using the Equity Method 2 0 2 1

List 3 Name Holiday Garden International Ltd., Holiday Garden Development International Ltd.,	Opening Balance Number of shares Amount 12,000 $1,284,466 6,500,000 47,849 $1,332,315	Opening Balance Number of shares Amount 12,000 $1,284,466 6,500,000 47,849 $1,332,315	Increase in this period (Note 1)	Increase in this period (Note 1)	Increase in this period (Note 1)	Decrease in the current period (Note 2) Number of shares Amount – ( $126,317 ) – ( 11,364 ) ($137,681 )		Endingbalance	Endingbalance		Unit	Market price or net	Market price or net	Market price or net	value Unit: NT$1,000 Evaluation basis Guarantee or Pledge Remark Equity method None Equity method None	value Unit: NT$1,000 Evaluation basis Guarantee or Pledge Remark Equity method None Equity method None
			Number of shares		Amount $334,670 –	Number of shares – ( – ( (	Number of shares 12,000 6,500,000	Shareholding	Amount $1,492,819 36,485					Total price $1,492,819 36,485
								ratio 100% 100%
			– –
		$1,332,315			$334,670				$1,529,304					$1,529,304

Note 1: The increase in the current period is the increase in the investment amount in the current period

Note 2: The decrease in the current period is due to the exchange difference from the translation of the financial statements of foreign operating
agencies and the share of the profits and losses of subsidiaries, affiliated enterprises and joint ventures recognized by the equity method in
the current period

~71~

Holiday Garden International Ltd. and subsidiaries Short-term loan schedule December 31,2021

List 4

Unit: NT$1,000

Type of loan	Summary Ending balance CTBC BANK Co., Ltd$ 400,000 CTBC BANK Co., Ltd 84,000 O-Bank 400,000 $ 884,000	Ending balance	Contract Period	Interest Rate Financing Amount 0.99% $ 400,000 0.99% 600,000 0.94% 400,000	Mortgage or Guarantee
Guaranteed bank loan Guaranteed bank loan Guaranteed bank loan			2021.10.28~2022.04.28 2021.10.28~2022.04.28 2021.12.24~2022.01.24		Time Deposit Time Deposit Time Deposit

Blank Below

~72~

Holiday Garden International Ltd. and subsidiaries

Schedule of Short Term Notes Payable

December 31,2021 List 5 Unit: NT$1,000 A M O U N T Interest Unamortized Project Guarantee agency Contract Period Rate Issue amount discount Value Remark Commercial[China Bills ] Finance promissory note Corporation (CBF) 2021.10.28~2022.04.28 0.56% $ 30,000 $ – $ 30,000

~73~

Holiday Garden International Ltd. and subsidiaries

List 6

Long-term loan details December 31,2021

								Unit: NT$1,000	Unit: NT$1,000
									Mortgage
						Interest		Financing	or
Creditor	Summary		Loan Amount		Contract Period	Rate		Amount	Guarantee	Remark
First Commercial
Bank, Sanmin	10 years credit loan	$		8,948	2012.09.18~2022.09.18	1.60%		58,678	None
ranch
							$
Hua Nan
Commercial
Bank, Ltd.	3 years credit loan			5,000	2019.09.20~2022.09.20	1.10%		20,000	None
Tung-Kaohsiung
Branch
				13,948
Minus: portion	due within one year	(		13,948)
		$	–

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Holiday Garden International Ltd. and subsidiaries

List 7

Operating Cost Schedule January 1,2021 to December 31,2021

Project		Amount 925 6,871 938 ) 435 ) 6,423 16,653 23,076 19,577 ) 3,499	Unit: NT$1,000 Remark
Beginning Catering Inventory Feed in this period Transfer operating expenses Ending Catering Inventory Consumables for this issue Food and room costs Less: Operating costs of closed units	$ ( ( ( $

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Holiday Garden International Ltd. and subsidiaries Operating Expenses Schedule January 1,2021 to December 31,2021

List 8

Unit: NT$1,000

				Unit: NT$1,000
Project	Summary		Amount 36,670 12,372 4,795 41,315 95,152 51,620 ) 43,532	Remark
		$ ( $		The balance does not exceed 5% of the amount of the subject

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Holiday Garden International Ltd. and subsidiaries

Summary of employee benefits, depreciation, and amortization expenses incurred in the current period by function January 1, 2020 to December 31, 2021

Holiday Garden International Ltd. and subsidiaries Summary of employee benefits, depreciation, and amortization expenses incurred in the current period by function January 1, 2020 to December 31, 2021	Holiday Garden International Ltd. and subsidiaries Summary of employee benefits, depreciation, and amortization expenses incurred in the current period by function January 1, 2020 to December 31, 2021	Holiday Garden International Ltd. and subsidiaries Summary of employee benefits, depreciation, and amortization expenses incurred in the current period by function January 1, 2020 to December 31, 2021	Holiday Garden International Ltd. and subsidiaries Summary of employee benefits, depreciation, and amortization expenses incurred in the current period by function January 1, 2020 to December 31, 2021	Holiday Garden International Ltd. and subsidiaries Summary of employee benefits, depreciation, and amortization expenses incurred in the current period by function January 1, 2020 to December 31, 2021	Holiday Garden International Ltd. and subsidiaries Summary of employee benefits, depreciation, and amortization expenses incurred in the current period by function January 1, 2020 to December 31, 2021	Holiday Garden International Ltd. and subsidiaries Summary of employee benefits, depreciation, and amortization expenses incurred in the current period by function January 1, 2020 to December 31, 2021
List 9 Unit: NT$1,000
Function Properties	2021			2020
	Operating Cost	Operating Expenses	Total	Operating Cost	Operating Expenses	Total
Employee Benefit Expenses	$ 9,426	$ 40,580	$ 50,006	$ 9,019	$ 45,351	$ 54,370
Salary Cost	8,020	31,188	39,208	7,615	36,722	44,337
Labor and health insurance costs	880	3,327	4,207	959	3,952	4,911
Superannuation Expenses	388	1,632	2,020	330	2,182	2,512
Director's Remuneration	—	3,850	3,850	—	1,920	1,920
Other Employee Benefit Expenses	138	583	721	115	575	690
Depreciation Expense	6,027	4,421	10,448	19,342	6,868	26,210

Notes:

1. The number of employees in the current year and the previous year was 93 and 115 respectively, of which the number of directors who were concurrently employees was 3 and 3 respectively

2. For companies whose stocks have been listed on the stock exchange or traded on the OTC securities exchange center, the following information should be disclosed:

3. (1) The average employee benefit cost for the current year is $513; the employee benefit cost for the previous year is $468.

4. (2) The average employee salary cost in the current year is $436; the employee salary cost in the previous year is $396.

5. (3) 10.10% of the adjustment and change of the average employee salary cost.

6. (4) The company has set up an audit committee to replace the supervisor in accordance with the regulations, so the remuneration of the supervisor is not recognized.

7. (5) Salary and remuneration policy

8. Policies, standards and combinations of remuneration:

9. (1). The remuneration of the company's directors and independent directors includes the travel expenses and the distribution remuneration according to the company's articles of association of not more than 1% of the profit for the year, which shall be paid according to Article 31 of the company's articles of association.

10. (2). The remuneration and salary of the managers of the company will be paid according to the personal professional experience and the usual standards of the industry, and the bonus will be issued according to the individual's performance according to its achievement rate, growth rate, risk and performance.

11. (3). The salary of the company's employees is determined according to the results of the interview and evaluation at each stage; the salary of the personnel is approved according to the grade level. In addition, bonuses are issued according to the individual's performance according to their achievement rate, growth rate, and job performance.

12. Procedure for setting remuneration

13. (1). The board of directors of the company passed the "Organization Regulations of the Remuneration Committee" in December 2011, and established a Remuneration Committee in accordance with the organizational regulations to formulate director and independent director-level managers' remuneration.

14. (2). The Compensation and Remuneration Committee of the Company determines and regularly evaluates the remuneration of directors, independent directors and managers. The remuneration of directors, independent directors and managers must be approved by the board of directors.

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