HG — Audit Report / Information 2020

Nov 11, 2020

Holiday Garden International Ltd.

Parent Company Only financial Report and Independent

Accountant’s Report

2020 and 2019 (Stock code: 2702)

Address: No.279, Liouhe 2nd Rd., Cianjin 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 2020 and 2019

Table of Contents

Item 1. Cover 2. Table of contents 3. Independent accountant’s report 4. Parent company only balance sheets 5. Parent company only statements of comprehensive income 6. Parent company only statements of changes in equity 7. Parent company only statements of cash flows 8. Notes of parent 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 ~ 8 9 ~ 10 11 12 13 ~ 14 15 15 15 15 ~ 17 17 ~ 26 26 27 ~ 44 44~45 45 45 45

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Item (11) Major events after the reporting period (12) Other (13) Additional disclosure (14) Segment information 9. Schedules of significant accounts Statement of cash and cash equivalents Statement of changes in investment property accounted for using the equity method Statement of property, plants, and equipment cost Statement of changes in accumulated depreciation of property and equipment Statement of short-term borrowings Statement of short-term notes and bills payable Statement of long-term borrowings Statement of operating revenue Statement of operating cost Statements of operating expenses Statement of other income Statement of other gains and losses Statement of financial cost Aggregation of employee benefit, depreciation, and amortization expenses by function

Page/No./Index 45 46 ~ 53 53 54 Statement 1 Statement 2 Statement 3 Note 6(5) Note 4(13) and 6(5) Statement 4 Statement 5 Statement 6 Note 6(14) Statement 7 Statement 8 Note 6(16) Note 6(17) Note 6(18) Statement 9

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Independent Accountant’s Report (2021.) Tsai Shen Pao Tzu No.20004341

Holiday Garden International Ltd ：

Opinion

The individual balance sheets of Hotel Holiday Garden for the years of 2020 and December 31, 2019,and the individual comprehensive income statements for the years for 2020 and January 1 to December 31, 2019, Statement of changes in equity, individual Statements of Cash Flows, and individual financial statement (including the summary of major accounting policies), have been checked by the accountant.

In accordance with the opinion of the accountant, the above individual financial statements are prepared in line with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, which is sufficient to express the 2020 and December 31, 2019 individual financial status of Hotel Holiday Garden, and the 2020 and January 1 to December 31, 2019 individual financial performance and individual cash flow.

Basis for opinion

The audit is carried out in accordance with the rules governing “Auditing and Certifications of Financial Statements by Certified Public Accountants” and the generally accepted auditing standards of the Republic of China. The responsibility of the accountants under these standards will be further explained in the accountability section of the accountant's audit of individual financial statements. In accordance with the professional ethics of the CPA accountant, it has maintained its detached independence from Hotel Holiday Garden and fulfil other responsibilities. The accountant believes that sufficient and appropriate evidence of the audit has been obtained as a basis for expression of the opinion.

Key audit matters

The auditing of key matters refer to the most important matters of the audit of the 2020 individual financial statements of Hotel Holiday Garden in accordance with the professional judgment of the accountant. These matters have been dealt with in the process of auditing the overall individual financial statements and forming a review opinion. The accountant will not make a separate opinion.

The key check items for the 2020 individual financial statements of Hotel Holiday Garden are as follows:

Intangible assets impairment evaluation

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Description

For accounting policies of investment using the equity method, please refer to Note 4(12) of the consolidated financial statements. For the uncertainty of the accounting estimates and assumptions of the investment impairment assessment using the equity method, please refer to appendice 5 (2) of the individual financial statements. For the description of the equity method investment, please refer to appendice 6 (4) of the individual financial statements.

The carrying amount of intangible assets and class of property, plant and equipment as of December 31, 2020 of the Group US subsidiary is NT$3,916,723,000, accounting for 56% of the total amount of the total consolidated assets. The booming of a wide variety of hotels and accommodations and the fierce competition in the hospitality industry in recent years And as a result of the impact of the COVID-19 pneumonia outbreak, the management of the Company has identified property, plant and equipment and intangible assets of certain subsidiaries as having indications of possible impairment. and to use the estimated future cash flows of each subsidiary and an appropriate discount rate for discounting to measure the recoverable amount of each cash generating unit and to use this information for evaluating the impairment of intangible assets.

The experts appointed by management measure the recoverable amounts of property, plant and equipment and intangible assets at fair value less costs of disposal. As the aforementioned estimation of future cash flows and the appraisal report issued by the experts involve a number of assumptions that could result in a material impact on the measurement of recoverable amount, therefore, intangible asset impairment evaluation is chosen to be one of the key audit matter of this year.

Corresponding audit program

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

1. We have learned to understand and evaluate management's operating procedure for estimating the subsidiaries’ future cash flows and verified that their cash flows are consistent with the business plan approved by the Board of Directors.

2. Evaluate the reasonableness of key assumptions used by management to estimate future

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cash flows.

1. We also evaluated the reasonableness by comparing the parameter and the discount rate of the recoverable amount.

2. Obtain an appraisal report from an expert appointed by management and evaluate the independence, professional competence and suitability of the expert.

3. Review the contents of the appraisal report to understand and assess the reasonableness of the sources of information, evaluation methods and conclusions used in the expert's report.

Responsibility of management and governing units regarding the consolidated financial statements

The management's responsibilities are based on the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” and maintain the necessary internal controls relating to the preparation of the individual financial statements to ensure that there are no significant misrepresentations of fraud or errors in the individual financial statement.

In the preparation of the consolidated financial statements, the management's responsibilities also including assessment of the ability of the Hotel Holiday Garden to continue its operations, the disclosure of related matters, and the adoption of the accounting basis for its continuing operation, unless the management intends to liquidate the Hotel Holiday Garden or cease its operations, or if there is no other options that are practical or feasible, but to liquidate or cease its operations.~19~

Those charged with governance(including the Supervisor) of Hotel Holiday Garden are responsible for overseeing the process of financial reporting.

The responsibility of the Accountant to audit the consolidated financial statements

The objectives of the Accountant auditing the consolidated financial statements are to obtain reasonable assurance about the financial statements as a whole are free from any material misrepresentation due to fraud or error and to issue an audit report. Reasonably assurance refers to a high level of assurance, but the verification work carried out in accordance with the generally accepted auditing standards of the Republic of China cannot guarantee that the significant misrepresentation of the consolidated financial statements can be detected. False expressions may be caused by fraud or errors. If the amount is misstated, individually or in aggregation, this would reasonably expected to affect the economic decision made by the consolidated financial statement users, and this will be considered to be significant impact.

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In accordance with the generally accepted auditing standards of the Republic of China, the Accountant exercised professional judgment and maintained professional skepticism. The accountant also performs the following tasks.

• 1.We identified and assessed the significant misrepresentation of the consolidated financial statements due to fraud or error; designed and implemented appropriate response measures for the assessed risks and to obtain sufficient and appropriate evidence to check as the basis for the review. Because fraud may involve conspiracy, forgery, intentional omission, false statement or overstepping internal control, the risk of significant misrepresentation due to fraud not being detected is higher than the cause of the error.

• We obtained the necessary understanding of the internal control of the audit to design an appropriate check procedure at the time, but the purpose is not to express an opinion on the effectiveness of the internal control of the Hotel Holiday Garden.

• Assessment of the appropriateness of accounting policies adopted, and the rationality of accounting estimates and related disclosures made by the management.

• 4.Conclusions are drawn on the basis of audit evidence obtained, whether the management adopts the appropriateness of the basis of continuing operations accounting and whether there are significant uncertainties in the events or circumstances that may cause significant doubts about the ability of the Hotel Holiday Garden to continue operation.

• 5.Evaluate the overall presentation, structure and contents of the consolidated financial statements (including related notes) and whether the individual financial statements represent the underlying transactions and events

• 6.Opinions expressed regarding the consolidated financial statements are based on sufficient and appropriate evidence obtained for the financial information of the entities of the Hotel Holiday Garden. The accountant is responsible for the guidance, supervision and execution of the audition and providing the audit opinions

Communication with those charged with governance regarding the planned scope and the timing of inspection, and major findings (including significant internal control shortcomings identified during 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).

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

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assumption.

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

Wu Chien-chih

Wang,Kuo-hua Financial Supervisory Commission

Approval certificate No.: Chin Kuan Cheng Shen Tzu No. 1010015969

Former Financial Supervisory Commission of Executive Yuan

Approval certificate No.: Chin Kuan Cheng Shen Tzu No. 1030027246

March 24, 2021

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Assets Current assets 1100 Cash and cash equivalents 1136 Net notes receivable 1150 Net accounts receivable 1170 Other accounts receivable 1200 Tax assets 130X Advance payments 1410 Other financial assets - current 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	Holiday Garden International Ltd. Parent Company Only Balance Sheet December 31 of 2020 and 2019 D e c e m b e r 3 1 , 2 0 2 0 Notes A m o u n t % 6(1) $ 60,874 2 8 973,505 31 6(2) - - 6(2) 4,099 - 141 - 6(3) 925 - 2,586 - 162 - 1,042,292 33 6(4) 1,332,315 43 6(5) and 8 662,177 21 6(6) 3,396 - 6(21) 90,695 3 733 - 2,089,316 67 $ 3,131,608 100	Unit: NT$1,000 D e c e m b e r 3 1 , 2 0 1 9 A m o u n t % $ 91,968 3 998,986 29 938 - 6,428 - 2,874 - 993 - 2,306 - 241 - 1,104,734 32 1,654,003 47 686,263 19 1,957 - 56,921 2 378 - 2,399,522 68 $ 3,504,256 100
		A m o u n t $ 91,968 998,986 938 6,428 2,874 993 2,306 241 1,104,734 1,654,003 686,263 1,957 56,921 378 2,399,522 $ 3,504,256

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Liabilities and equity Current liabilities 2100 Short-term borrowings 2110 Short-term notes and bills payable 2130 Contractual liabilities - current 2150 Notes payable 2170 Accounts payable 2200 Other accounts payable 2230 Income tax liabilities 2280 Unearned receipts 2320 Long-term liabilities - current portion 2399 Other current liabilities - others 21XX Total current liabilities Non-current liabilities 2540 Long-term borrowings 2570 Deferred income tax liabilities 2580 Lease obligation -non current 2610 Long-term notes and accounts payable 2645 Guarantee deposits received 25XX Total non-current liabilities 2XXX Total liabilities Equity Capital stock 3110 Common share capital Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Retained earnings Other equity 3400 Other equity 3XXX Total equity Major events after the reporting period 3X2X Total liabilities and equity

Holiday Garden International Ltd. Parent Company Only Balance Sheet December 31 of 2020 and 2019 Unit: NT$1,000 De c e mb er31,20 2 0 De c e mb er31,20 1 9 Notes A m o u n t % A m o u n t % 6(7) and 8 $ 1,609,599 51 $ 1,530,000 44 6(8) 130,000 4 130,000 4 6(14) 8,506 - 8,196 - - - 322 - 3,140 - 2,519 - 15,183 1 15,663 - 66 - 1,370 - 1,287 - 586 - 6(9) and 8 18,597 1 52,196 2 2,667 - 2,529 - 1,789,045 57 1,743,381 50 6(9) and 8 13,948 - 56,010 1 6(21) 236,212 8 285,764 8 2,120 - 1,389 - 6(5) 127,577 4 127,577 4 755 - 870 - 380,612 12 471,610 13 2,169,657 69 2,214,991 63 6(11) 1,104,856 35 1,104,856 32 6(12) 2,169 - 2,169 - 6(13) 82,561 3 82,561 2 71,161 2 71,161 2 ( 182,800) ( 6 ) 87,509 3 ( 115,996)( 3)( 58,991)( 2) 961,951 31 1,289,265 37 $ 3,131,608 100 $ 3,504,256 100

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.

Parent Company Only Statement of Comprehensive Income
January 1 to December 31 of 2020 and 2019

Item		Unit: NT$1,000 (Except earnings (loss) per share, which is in NT$1.00) 2 0 2 0 2 0 1 9 Notes A m o u n t % A m o u n t % 6(14) $ 95,867 100 $ 153,657 100 6(3)(19)(20) ( 41,621)( 44)( 51,762)( 34) 54,246 56 101,895 66 6(19)(20) ( 94,578 ) ( 99) ( 106,647) ( 69) 12(2) ( 447) - ( 125) - ( 95,025)( 99)( 106,772)( 69) ( 40,779)( 43)( 4,877)( 3) 6(15) 12,381 13 21,077 14 6(16)and7 13,178 14 3,078 2 6(17) ( 52,755 ) ( 55) ( 31,595) ( 21) 6(18) ( 21,832 ) ( 23) ( 21,375) ( 14) 6(4) ( 250,432)( 261) 34,605 23 ( 299,460)( 312) 5,790 4 ( 340,239 ) ( 355) 913 1 6(21) 69,930 73 ( 5,605)( 4) ( $ 270,309)( 282)($ 4,692)( 3) 6(4) ( $ 71,256 ) ( 74) ($ 43,314) ( 28) 6(21) 14,251 15 8,663 5 ( $ 57,005)( 59)($ 34,651)( 23) ( $ 327,314)( 341)($ 39,343)( 26) 6(22) ( $ 2.45)($ 0.04) ($ 2.45) ($ 0.04)
4000 Operating revenue 5000 Operating cost 5900 Operating gross profit Operating expenses 6200 Management expense 6450 Expected credit impairment loss 6000 Total operating 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 8200 Net profit (loss) Other comprehensive income Items may be subsequently 8361 Exchange differences on 8399 Income tax of items that may be 8300 Other comprehensive income 8500 Total comprehensive income Earnings (loss) per share 9750 Basic 9850 dilution

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. Parent Company Only Statements of Changes in Equity January 1 to December 31 of 2020 and 2019

Unit: NT$1,000
RetainedearningsOtherequity
Exchange
diffe ren ces
Additional paid on translation of
Share capital -in capital - Retained foreign financial
NotescommonstockinexcessofparLegalreserveSpecialreserveearningsstatementsTotal

2019 Balance, January 1, 2019 Net loss Other comprehensive income Total comprehensive income 2018 Appropriation and distribution of retained earnings: Legal reserve Stock dividends 6(13) Cash dividends 6(13) Balance, December 31, 2019 2020 Balance, January 1, 2020 Net income Other comprehensive income Total comprehensive income Balance, December 31, 2020	$ 1,023,015 - - - - 81,841 - $1,104,856 $1,104,856 - - - $ 1,104,856	$2,169 - - - - - - $2,169 $2,169 - - - $ 2,169	$ 61,295 - - - 21,266 - - $82,561 $82,561 - - - $ 82,561	$ 71,161 $ 215,768 ( $ 24,340 ) $ 1,349,068 - ( 4,692 ) - ( 4,692 ) - - ( 34,651 ) ( 34,651 ) - ( 4,692 ) ( 34,651 ) ( 39,343 ) - ( 21,266 ) - - - ( 81,841 ) - - - ( 20,460 ) - ( 20,460 ) $71,161 $87,509 ( $58,991 ) $1,289,265 $71,161 $87,509 ( $58,991 ) $1,289,265 - ( 270,309 ) - ( 270,309 ) - - ( 57,005 ) ( 57,005 ) - ( 270,309 ) 57,005 ) ( 327,314 ) $ 71,161 ($ 182,800 ) ( $ 115,996 ) $ 961,951

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

Accounting Director: Yu
Su-ling

Chairperson of the Board: Chen Hai-ni

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Holiday Garden Hotel Co., Ltd. Parent Company Only Cash Flow Statement January 1 to December 31 of 2020 and 2019

				Unit: NT$1,000
		Notes	2020	2019
Cash flows from operating activities
Net profit (losses) before tax		( $	340,239 ) $	913
Adjustments:
Revenue/expenses
Provision for bad debt expense	12(2)		447	125
Depreciation expenses	6(5)(6)(19)		26,210	28,836
Profit on lease modification	6(6)	(	16 )	-
Interest expense	6(18)		21,832	21,375
Interest income	6(15)	(	12,381 ) (	21,077 )
Share of profit of subsidiaries, associates,	6(4)
joint ventures accounted for using equity
method			250,432 (	34,605 )
Loss on disposal and write-off of property,	6(17)
plants, and equipment			- (	62 )
Changes in assets/liabilities related to operating
activities
Net changes in assets related to operating
activities
Notes receivable			938 (	538 )
Accounts receivable			1882 (	796 )
Inventories			68 (	661 )
Advance payments		(	280 ) (	118 )
Other current assets - others			79 (	148 )
Net changes in liabilities related to operating
activities
Contractual liabilities - current			310	1,229
Notes payable		(	322 ) (	1,044 )
Accounts payable			621 (	2,922 )
Other accounts payable		(	726 )	2,758
Unearned receipts			138	830
Operating cash inflows (outflows)		(	51,007 ) (	5,905 )
Interests received			15,114	21,558
Interests paid		(	21,586 ) (	21,387 )
Income taxes paid		(	449) (	2,149)
Net cash outflows from operating
activities		(	57,928) (	7,883)
Cash flows from investment activities
Acquired in amortised cost of a financial asset			- (	409,760 )
Disposal in amortised cost of a financial asset			25,481	-
Acquisition of investments accounted for using the equity method	6(4)		- (	400,000 )
Cash returned from capital reduction of
investments accounted for using the equity	6(4)
method			-	605,915
Acquisition of property, plants, and equipment	6(23)	(	1,599 ) (	1,973 )
Disposal of property, plants, and equipment			-	495
Increase (decrease) in guarantee deposits paid		(	355)	709
Net cash outflows from investment
activities			23,527(	204,614 )
Cash flows from fundraising activities
Increase in short-term borrowings	6(24)		1,791,099	1,660,000
Decrease in short-term borrowings	6(24)	(	1,711,500 ) (	1,334,500 )
Lease capital repayment	6(24)	(	516 ) (	573 )
Long-term borrowings	6(24)		-	20,000
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
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Accounting Director : Yu Su-ling

Holiday Garden Hotel Co., Ltd. Parent Company Only Cash Flow Statement January 1 to December 31 of 2020 and 2019

Payments of long-term borrowings Increase in guarantee deposits received Distribution of cash dividends Net cash inflows from fundraising activities Increase in cash and cash equivalents Cash and cash equivalents, beginning of the period Cash and cash equivalents, end of the period	Unit: NT$1,000 Notes 2020 2019 6(24) ( 75,661 ) ( 51,086 ) ( 115 ) 115 6(13) - ( 20,460) 3,307 273,496 ( 31,094 ) 60,999 6(1) 91,968 30,969 6(1) $ 60,874$ 91,968

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
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Accounting Director : Yu Su-ling

Holiday Garden International Ltd. Notes for Parent Company Only Financial Statements 2020 and 2019

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 May 24, 2021

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 2020 approved by the Financial Supervisory Commission:

Commission:
Newly issued/revised/amended standards and interpretations Amendments to IAS 1 and IAS 8 “Disclosure Initiative -Definition of materiality” Amendments to IFRS3 “Definition of a Business” Amendments to IFRS 9,IAS 39 and IFRS 7 “Interest Rate Benchmark Reform” Amendments to IFRS 16, "Covid-19-Related Rent Concessions" Note: The FSC allows early application on January 1, 2020.	Effective date of issuance by International
	Accounting Standards Board January 1, 2020 January 1, 2020 January 1, 2020 January 1, 2020

The Company has determined that the above standards and interpretations have no material effect on the Company’s financial conditions and performance.

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

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The following table sets forth the newly issued, amended and revised IFRSs recognized by FSC and their interpretations for the year ended December 31, 2021.

Effective date of issuance by International Accounting Standards Newly issued/revised/amended standards and interpretations Board Amendments to IFRS 4 "Extension of the Temporary Exemption from January 1, 2021 Applying IFRS 9

Amendments to IFRS 9,IAS 39,IFRS 7,IFRS 4 and IFRS16 “Interest January 1, 2021 Rate Benchmark Reform—Phase 2 ”

The Company has determined that the above standards and interpretations have

no material effect on the Company’s financial conditions and performance.

(3)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 but not yet approved and included by the Financial Supervisory Commission:

Newly issued/revised/amended standards and interpretations Amendments to IFRS 3 “Reference to the Conceptual Framework ” Amendments to IFRS 10 and IAS 28, "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture". IFRS 17"Insurance Contracts". Amendments to IFRS 17"Insurance Contracts" Amendments to IAS 1"Classification of Liabilities as Current or Non-current". Amendments to IAS 1"Disclosures to accounting Policies" Amendments to IAS 8"Definition of Accounting Estimates" Amendments to IAS 16 "Property, Plant and Equipment: Proceeds before Intended Use" Amendments to IAS 37 "Onerous Contracts—Cost of Fulfilling a Contract" Annual improvement for the 2018-2020 cycle

Effective date of issuance

by International Accounting Standards Board January 1, 2022 Pending IAS Board decisions January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2022 January 1, 2022 January 1, 2022

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The Company has determined that the above standards and interpretations have no material effect on the Company’s financial conditions and performance.

4. Summary of significant accounting policies

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

(1) Statement of compliance

This parent company only financial report is prepared in accordance with

Regulations Governing Preparation of Financial Reports by Securities Issuers.

• (2) Basis of preparation

• 1.This parent company only financial report is prepared based on the historical cost.

• 2.Some material accounting estimation are used in preparing financial statements based on IFRS and IAS approved by the Financial Supervisory Commission and the related interpretations, and interpretative bulletins (IFRSs). When applying the Company'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 in the parent company only financial report. Please refer to Not 5 attached.

• (3) Foreign currency translation

Accounts listed in the Company’s parent company only financial report are based on the money (i.e., functional currency) of the primary economic environment. This parent company only financial report is presented in New Taiwanese Dollars (NT$), which is the Company’s functional and presentation currency.

1. Foreign currency transaction and balance

2. (1) For foreign currency transactions, spot rate of exchange on the trading day or the measurement date is used for functional currency translation, and the resulting exchange differences are recognized in profit or loss.

3. (2) Foreign currency monetary assets and liabilities balanc e is adjusted based on the spot exchange rate on the balance sheet date, and the resulting exchange differences are recognized in profit or loss.

4. (3) Foreign currency monetary assets and liabilities balance is measured at fair value through profit or loss and adjusted using the spot exchange rate on the balance sheet. The resulting exchange differences are recognized in profit or

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loss. For foreign currency monetary assets and liabilities balance that is measured at fair value through other comprehensive income, it is adjusted using the the spot exchange rate on the balance sheet day. The resulting exchange differences are recognized in the account of other comprehensive income. As for those not measured at fair value, they are measured at the historical exchange rate on the initial transaction day.

• (4) All exchange gains or losses are recognized in “other gains and losses” in the statement of comprehensive income.

• Translation of foreign financial statements

• (1)All the group entities that have a functional currency different from the presentation currency are translated into the presentation currency as follows: ：

  • A. The assets and liabilities of each balance sheet presented are translated at the closing rate of that balancesheet date ；

  • B. The income and expenses of each statement of comprehensive income are translated using the current average exchange rate, and

  • C. Exchange differences generated from translation are recognized in other comprehensive profit/loss.

• (2) When a foreign operation is partially disposed of or sold, it will be recognized in the accumulated exchange differences of other comprehensive income and reclassified to the non-controlling interests of that specific foreign operating entity. However, when the Company loses the control of a foreign operating subsidiary, even if the Company still keeps partial equity of this former subsidiary, it is treated as disposing all equity of this foreign operating subsidiary.

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

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

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

3. (2)Liabilities held primarily for transaction purposes.

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

5. (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

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

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

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

3. (2) Liabilities held primarily for transaction purposes.

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

5. (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 non-current.

(5) Cash equivalents

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.

(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 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.

• 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.

• 4.Time deposits held by the parent company that do not qualify as cash equivalents

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are measured at the investment amount because the effect of cash discounting is not significant due to the short holding period.

• (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 ：

1. The contractual rights to receive cash flows from the financial asset expire. 2. 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 ke pt.

(10) Operating lease (lessor)

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

~20~

of the lease.

(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 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

~21~

interests during the construction period are capitalized.

1. 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.

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

3. 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 a nd 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 15 years Business facilities/equipment 1 to 25 years Other facilities 3 to 8 years

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

5. 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

6. 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.

7. 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

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depreciation. The right-if-use asset will adjust any remeasurement of the lease liabilities which is reassessed.

(15) Non-financial asset impairments

The Company estimates the recoverable amount for assets showing impairments at the balance sheet date, and when the recoverable amount of an asset is lower than the book value, it is recognized in impairment losses. The recoverable amount refers to fair value less costs to sell or value in use, whichever is lower. Aside from goodwill, when an asset impairment loss recognized the year before disappears or decreases, reverse the impairment loss, but the increase to the carrying amount of the asset due to the reversal cannot exceed the said asset’s book value without impairment recognized and net of amortization or depreciation.

(16) Loans

It refers to proceeds from long-term and short-term bank borrowings. The Group recognizes borrowings initially at fair value, net of transaction costs incurred, and subsequently any difference between the proceeds (net of transaction costs) and the redemption value is measured at amortized cost using the effective interest method and recognized as interest expense in profit or loss during the circulating period.

(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.

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

(18) Derecognization 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 liabilities can be offset only if there is the legally enforceable right to do so and the intent is to to settle on a net basis or to realize the asset and settle the liability simultaneously and the net amount has to be stated in the balance sheet.

(20) Employee benefits

1. Short-term employee benefits

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

1. 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 closin g 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 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. T here 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

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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 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

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(24) Government Grants

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 that the grant will be received. If the nature of the government subsidy is to compensate the Company for expenses incurred, the government subsidy is recognized in profit or loss on a systematic basis in the period in which the related 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. Mate rial 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

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.

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6. Details of significant accounts

(1) Cash and cash equivalents

Cash: Cash in treasury and working funds Checking deposits and demand deposits Cash equivalents: Time deposits:	December 31, 2020 $ 1,088 36,204 37,582 23,582 $ 60,874	December 31, 2019 $ 1,485 29,517 31,002 60,966 $ 91,968

• 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.

• As of December 31, 2020 and 2019, cash and cash equivalents held by the Parent Company restricted for pledging purposes have been classified as financial assets measured at amortized cost of $973,505 and $998,986, respectively, based on their liquidity.

(2)Net amount of accounts and notes receivable

		December 31, 2020	December 31, 2019	December 31, 2019
Notes receivable		$ -	$	938
Less: Allowance for doubtful accounts		-		-
		$-	$	938
Accounts receivable
Less: Allowance for doubtful accounts		$ 4,671	$	6,553
Notes receivable	(	572)	(	125)
Less: Allowance for doubtful accounts		$ 4,099	$	6,428
ging analysis of accounts and notes receivable：
		December 31, 2020		December 31,	2019
Not past due and past due for 1 to 30 days		$	2,244	$ 6,336
Past due for 31 to 90 days			1,859	1,035
Past due for more than 94 days			568		120
		$	4,671	$ 7,491

• 1.Aging analysis of accounts and notes receivable ：

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

• 2.The balance of receivable(included note receivable) between the contract and

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company on December 31 , 2020 ,December 31, 2019 and January 1,2019 are $4,671,$7,491 and $6,157.

• 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, 2020 and 2019 was NT$0 and NT$938 respectively. The Company's maximum amount of credit risk exposure of the most representing accounts receivable for December 31, 2020 and 2019 was NT$4,099 and NT$6,428 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, 2020	Carrying amount $ 925 Carrying amount $ 993
	Cost $ 925	Allowance for price decline in inventories $- December 31, 2019
	Cost $ 993	Allowance for price decline in inventories $-

The inventory cost that the Company recognized as expenses for 2019 and 2018 was $17,629 and $20,079 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 for using the equity method Changes in other equity December 31		2020 $ 1,654,003 - 250,432) - 71,256) $ 1,332,315	2019 $ 1,868,627 400,000 34,605 ( 605,915) ( 43,314) $ 1,654,003
	( (

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Holiday Garden International Ltd. Holiday Garden Development Co., Ltd. Holiday Garden International Ltd. Holiday Garden Development Co., Ltd.	December 31, 2020 $ 1,284,466 47,849 $ 1,332,315 December 31, 2020 $ 1,284,466 47,849 $ 1,332,315	December 31, 2019 $ 1,603,478 50,525 $ 1,654,003 December 31, 2019 $ 1,603,478 50,525 $ 1,654,003

1. Information of the Company’s subsidiaries are presented in Note 4(3) of the Company's 2019 consolidated financial statements.

(5)Property, plants, and equipment

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

e book value of property, plants,	and equipment is pre	sented below：
Land Buildings and structures Utility equipment Business facilities/equipment Other facilities	December 31, 2020 $ 481,493 161,188 5,784 12,847 865 $ 662,177	December 31, 2019
		$ 481,493 181,294 7,850 14,785 841
		$ 686,263

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

Changes in property, plants, and	equipment are as follo	ws：	ws：	ws：
Cost Land Buildings and structures Utility equipment Business facilities/equipment Other facilities Cost Land Buildings and structures Utility equipment Business facilities/equipment Other facilities		2020					Closing balance $ 481,493 618,478 32,454 42,836 4,304 $ 1,179,565 Closing balance $ 481,493 618,173 32,288 42,047 3,965 $ 1,177,966
	Opening balance $ 481,493 618,173 32,288 42,047 3,965 $ 1,177,966	Addition Reduction $ - $ - 305 - 166 - 789 - 339 - $ 1,599 $- 2019			Reduction $ - - - - -
	Opening balance $ 481,493 617,874 31,320 47,182 3,965 $ 1,181,834	Addition $ - 299 968 706 - $ 1,973	Reduction $ - - - ( 5,841) - $-

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Accumulated depreciation and impairment		2020		Closing balance $ 457,290 26,670 29,989 3,439 $ 517,388
	Opening balance $ 436,879 24,438 27,262 3,124 $ 491,703	Addition $ 20,411 2,232 2,727 315 $ 25,685	Reduction $ - - - - $-
Buildings and structures Utility equipment Business facilities/equipment Other facilities

2019

		2019
Accumulated depreciation and impairment	Opening balance $ 414,614 22,094 29,504 2,654 $ 468,866	Addition $ 22,265 2,344 3,166 470 $ 28,245	Reduction $ - - ( 5,408) - ($ 5,408)	Closing balance $ 436,879 24,438 27,262 3,124
Buildings and structures Utility equipment Business facilities/equipment Other facilities
				$ 491,703

• 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. These payments had to be made before applying for the construction permit or the issuing of the change of use permit, and they were recognized in 2013 (The balance at December 31, 2020 and 2019 was stated as long-term notes and accounts payable of $127,577).

• 4.There was no borrowing cost capitalization of the Company’s property, plants, and equipment in 2020 and 2019.

• For information on using property, plants, and equipment for guarantees, please refer to Note 8.

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－ (6)Lease transaction Lessee

• 1.The lease assets of the company included buildings and multifunctional office machine, and the terms between 2 to 3 years. The contract included different provisions and requirements, and no other restriction except using the assets as the guarantee to debit, credit and the consent of the lessor is required for subleasing to a third party.

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

• 3.Information of the carrying amounts of right-of-use assets and recognized depreciation expense as the below:

2020

		2020
January 1 Adding Depreciation expense Dispositions December 31	Building $ 1,861 2,813 ( 312) (1,862) $ 2,500	Transportation Equipment $ - 1,013 ( 141) - $872	Business Equipment $ 96 - ( 72) - $ 24	Total
				$ 1,957 3,826 ( 525) (1,862)
				$3,396

		2019
January 1 Adding Depreciation expense December 31	Building $ 2,380 (519) $ 2,500	Transportation Equipment $ - - - $-	Business Equipment $ 157 11 (72) $ 96	Total
				$ 2,537 11 ( 591)
				$1,957

• 4.The right-of-use of the company increase to $3,826 and $11 in 2020 and 2019, respectively.

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

Affected project of current loss and gain	2020 $ 21 1,037 213 ( 16)	2019
		$ 39 1,139 135 -
Lease obligation interest Expense of short-term lease Expense of leases of low-value assets Interest on lease modifications

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1. The additions to the Company’s right-of-use assets for fiscal 2020 and 2019 were NT$3,826 and NT$11, respectively.

2. (7) Short-term borrowings

Types of borrowings Unsecured loans from banks Secured loans from banks Range of interest rates	December 31, 2020 $ 90,000 1,519,599 $ 1,609,599 0.94%~1.62%	December 31, 2019 $ 75,000 1,455,000 $ 1,530,000 1.10%~1.90%

1. The Company's bank loans are recognized in the interest expense of profit or 。

loss. Please see Note 6(18)

1. For collaterals of the above-mentioned short-term borrowings, please refer to Note 8 。

(8) Short-term notes and bills payable

Short-term notes and bills payable
Commercial paper payable Range of interest rates	December 31, 2020 $ 130,000 0.55%~0.90%	December 31, 2019
		$ 130,000
		0.60%~0.96%

Bills finance companies and other financial institutions provide guarantees for the above-mentioned short-term notes and bills payable.

• (9) Long term borrowings

(9)Long-term	borrowings
Types of borrowings Long-term Borrowings from banks Unsecured loans	Period of borrowing and repayment	Range of interest rates	Collateral None	December 31, 2019
				$ 20,878

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Secured loans The term of borrowing is from June 4, 2014 to June 4, 2021. The interest is paid on a monthly base. Starting from June 4, 2015, the loan is repaid quarterly for 25 installments.The loan was repaid early in September 2009. - Secured loans The term of borrowing is from June 1, 2015 to June 1, 2022. The interest is paid on a monthly base. Starting from June 1, 2016, the loan is repaid quarterly for 25 installments.The loan was repaid early in September 2020. Unsecured loans The term of borrowing is from September 20 2019 to September 20, 2022. The interest is paid on a monthly basis. 1.10% Less: Current portion of long-term loans payable Types of borrowings Period of borrowing and repayment method Range of interest rates Long-term borrowings from banks Unsecured loans The term of borrowing is from September 18, 2012 to September 18, 2022. The interest is paid on a monthly basis. Starting from December 18,2015, the loan is repaid quarterly for 28 installments. 1.75% Secured loans The borrowing period is from June 4, 2014 to June 4, 2021. The interest is paid on a monthly base. Starting from June 4, 2015, the loan is repaid quarterly for 25 installments. 1.90% Secured loans The borrowing period is from June 1, 2015 to June 1, 2022. The interest is paid on a monthly base. Starting from June 1, 2016, the loans are repaid quarterly for 25 installments. 1.70%	- 1.10% Range of interest rates	Note: Note: None ( $ Collateral None Note: Note:		- - 11,667 32,545 52,196) 13,948 December 31, 2018
			(
			$
				$22,978 38,895 28,000

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Unsecured loans The term of borrowing is from September 20, 2019 to September 20, 2022. The interest is paid on a monthly basis. 1.38% None Less: Current portion of long-term loans payable	(

• Note: For collaterals of the above-mentioned long-term borrowings, please refer to Note 8.

The Company's bank loans are recognized in the interest expense of income. Please see Note 6(18).

(10) Pensions

1. In accordance with the Labor Pension Act, the Company set up the defined 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$2,512 and NT$2,424 in 2020 and 2019 respectively.

(11) Capital stock

• 1.As of December 31,2020, 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:

January 1 Capital increase by retained earnings December 31	2020 110,486 - 110,486	Unit: 1,000 shares 2019 102,302 8,184 110,486

• 2.The Company’s capital increase out of earnings was approved at the shareholders’ meeting on June 19, 2019 and a total of 8,184,000 new shares were issued from the earning of $81,841. This capital increase has been

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approved by the Financial Supervisory Commission on July 26, 2019 and the change has been registered.

(12) 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 paid-in capital. The Company cannot use capital surplus for capital increase unless the reserve is not enough to cover the capital losses.

(13) 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.

• The presence of at least two-thirds of the board of directors of the Parent Company and the resolution of a majority of the directors present to distribute all or part of the dividends and bonuses, capital surplus or legal reserve in the form of cash and report to the shareholders' meeting shall not apply to the aforementioned requirement for a resolution at the shareholders' meeting.

• 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

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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 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 reclassifi ed, and for the non-land part, it shall be reversed progressively throughout the term of us e.

• 4.The Company recognized dividends for owners of NT$0 and NT$102,301 for 2020 and 2019 respectively. The Company has accumulated losses for fiscal 2020 and has no earnings available for distribution.

(14) Operating revenue

2020 2019 Revenue from contracts with customers $ 95,867 $ 153,657

• 1.Details of customer contract revenue

The Company’s revenue is mainly from the following lines of products ：

2020 Guest room revenue Revenue from contracts with external revenue $ 57,650 2019 Guest room revenue Revenue from contracts with external revenue $ 103,454	Foodservice Revenue $ 33,726 Foodservice Revenue $ 45,747	Others $ 4,491 Others $ 4,456	Total $ 95,867 Total $ 153,657

In 2020, the Company's business was impacted by the COVID-19 outbreak, resulting in a decrease in operating income. As of the date of the audit report, the impact on operating income cannot be reasonably estimated as the subsequent control of COVID-19 is still affected.

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2. Contractual liabilities

The Company has recognized the following contractual liabilities related to revenue from contracts with customers:

Contractual liabilities: Contractual liabilities - Room service contracts Contractual liabilities - Foodservice contracts		December 31, 2020 $ 3,084 5,422 $ 8,506		December 31, 2019 $ 3,161 5,035 $ 8,196		January 1,2019 $ 3,626 3,341 $ 6,967

Contractual liabilities at beginning of the reporting period recognized as revenue ：

pening balance of contractual liabilities recognized as revenue: Room service contracts Foodservice contracts	2020 $ 3,161 5,035 $ 8,196	2019 $ 3,626 3,341 $ 6,967

Opening balance of contractual liabilities recognized as revenue:

(15) Interest income

(15)Interest income
		2020	2019
Bank deposit interest	$	471	$ 1,120
Measured by post-amortized cost
Interest income from financial assets		11,910	19,957
	$ 12,381		$ 21,077
(16)Other income
		2020	2019
Rental income	$	2,050	$ 2,073
Government Subsidy Revenue		8,440	-
Other income – others		2,688	1,005
	$	13,178	$ 3,078

In the second and fourth quarters of 2020, the Company applied for subsidies from the Tourism Bureau of the Ministry of Transportation and Communications in accordance with the "Salary Subsidy Guidelines for Employees in the Tourist Hotel and Guesthouse Industry" and the "Implementation Guidelines for Subsidies for Necessary Operating Burdens in the Tourist Hotel and Guesthouse Industry by the Tourism Bureau of the Ministry of Transportation and Communications". After review and approval, we will recognize $8,440 in government grant revenue in fiscal 2020 with no outstanding conditions and other contingencies.

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(17) Other gains and losses

(17)Other gains and losses	(17)Other gains and losses
Disposal of property, plants, and equipment loss Net gain (loss) on foreign currency exchange Other gains (losses), net (18)Financial cost Interest expense： Long-term borrowings from banks Lease obligations interest (19)Addition information on expenses Employee benefit expense $ Property, plants, and equipment depreciation Right-of-use assets depreciation expense (20)Employee benefit expense Wages and Salaries Health and labor insurance expense Pension expense Other Employee benefit expense		2020 $ - ( 52,477) ( 278) ($ 52,755) 2020 $ 21,811 21 $ 21,832 2020 54,370 25,685 525 2020 $ 46,257 4,911 2,512 690 $ 54,370		2019 $ 62 ( 31,649) ( 8) ($ 31,595) 2019 $ 21,336 39 $ 21,375 2019 57,788 28,245 591 2019 $ 49,444 4,904 2,424 1,016 $ 57,788
	$		$

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 renuneration. However, if the Corporation has accumulated deficit, the priority is to offset the deficit first.

2. The Company estimated NT$0 for employees compensation and directors and supervisors renumeration for both 2020 and 2019. The 2019 employee compensation and directors and supervisors renumeration resolved by the Board of Directors are the amount separately 1 and $0 recognized in the 2020 financial report.

Information on employee compensation and directors and supervisors

~39~

renumeration approved by the Company's Board of Directors is posted on the Market Observation Post System

• (21) Income tax

• Income tax expense (benefit)

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

		2020			2019
Current income tax:
Income tax generated from current
income:	$ -			$			-
Tax on unappropriated earnings		-			4,570
Overestimation of prior year	(	855 )				-
income tax
Total current tax	(	855 )		(	4,570)
Deferred income tax:
Origination and reversal of		69,075			1,035
temporary differences
Income tax expense (benefit)	($	69,930 )		$	5,605
(2)Other income tax amount related to	comprehensive loss and			gain:
		2020			2019
Exchange differences on translation
of foreign financial statements		($ 14,251)		($	8,663		)
2.Reconciliation between income tax		expense (benefit) and			accounting
profit：
		2020			2019
Income tax calculated based on the net		($ 68,048 )		$		183
profit before tax at the statutory rate
(See note)
Affected income tax amount according		661				852
to adjustment items stipulated by income
tax laws and regulations
Effect of tax rate changes		( 1,688 )					-
Overestimation of prior year income tax		( 855	)				-
Tax on unappropriated earnings			-		4,570
Income tax expense (benefit)		($ 69,930 )		$	5,605

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

。 appropriate for the Company.

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

~40~

2020

			2020	2020
Deferred tax assets: Temporary differences: Exchange differences on translation of foreign financial statements Unrealized exchange loss Bonus for not taking leave Tax losses Deferred income tax liabilities: Temporary differences: Investment income recognized under the foreign equity method Unrealized reserve for land revaluation increment tax	January 1 $ 8,136 3,809 258 44,718		Recognized in Recognized in Others Gain or loss Comprehensive income December 31 - $ 14,251 $ 22,387 10,502 - 14,311 ( 19 ) - 239 9,040 - 53,758 $ 19,523 $ 14,251 $ 90,695 $ 49,552 $ - ( $ 142,745) - - ( 93,467) $ 49,548 $- ($ 236,212) $ 69,075 $ 14,251 ($ 145,517)
				income $ 14,251 - - - $ 14,251 $ - - $- $ 14,251
			- 10,502 ( 19 ) 9,040 $ 19,523 $ 49,552 - $ 49,548 $ 69,075
	$ 56,921
	($ 192,297) ( 93,467)
	($ 285,764) ($ 228,843)

Deferred tax assets: Temporary differences: Exchange differences on translation of foreign financial statements Unrealized exchange loss Bonus for not taking leave Tax losses Deferred income tax liabilities: Temporary differences: Unrealized exchange gain		2019 Recognized in Recognized in others Gain or loss Comprehensive Income December 31 ($ 7,418) $ 8,663 $ 8,136 3,809 - 3,809 46 - 258 8,076 - 44,718 $ 4,513 $ 8,663 $ 56,921 $ 2,110 $ - $ -	2019 Recognized in Recognized in others Gain or loss Comprehensive Income December 31 ($ 7,418) $ 8,663 $ 8,136 3,809 - 3,809 46 - 258 8,076 - 44,718 $ 4,513 $ 8,663 $ 56,921 $ 2,110 $ - $ -
	January 1	Recognized in Gain or loss ($ 7,418) 3,809 46 8,076 $ 4,513 $ 2,110
			Income $ 8,663 - - - $ 8,663 $ -
	$ 6,891 - 212 36,642 $ 43,745 ($ 2,110)

~41~

Investment income recognized under the foreign equity method Unrealized reserve for land revaluation increment tax	( 184,639) ( 93,467) ($ 280,216) ($ 236,471)	( 7,658) - ($ 5,548) ($ 1,035)	- - $- $ 8,663	( 192,297) ( 93,467) ($ 285,764) ($ 228,843)

• 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, 2020

o	Year of ccurrence Amount filed/amount approved 2013 Re-approved amount 2014 Reassessed and reapproved amount 2015 Approved amount 2016 Approved amount 2017 Amount filed 2018 Amount to be filed 2019 Amount to be filed 2020 Re-approved amount	$	Deductible amount 14,300 3,003 9,018 26,590 72,817 56,901 40,604 45,556 268,789	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 Portion $ - 2023 - 2024 - 2025 - 2026 - 2027 - 2028 - 2029 - 2030 $ -	Unrecognized deferred income tax assets Portion $ - 2023 - 2024 - 2025 - 2026 - 2027 - 2028 - 2029 - 2030 $ -
					$ $
						$

December 31, 2019

o	Year of ccurrence Amount filed/amount approved 2013 Re-approved amount 2014 Reassessed and reapproved amount 2015 Approved amount 2016 Approved amount 2017 Amount filed 2018 Amount to be filed 2019 Re-approved amount	$ $	Deductible amount 14,300 3,003 9,018 26,590 72,817 56,901 40,958 223,587	$ $	Undeducted amount 14,300 3,003 9,018 26,590 72,817 56,901 40,958 223,587	Unrecognized deferred income tax assets Portion $ - 2023 - 2024 - 2025 - 2026 - 2027 - 2028 2029 $-

• 5.The tax authorities have examined and approved the Company’s business income tax returns up to and including 2018.

~42~

(22) Earnings (loss) per share

Basic loss per share		2020	Loss per share (NT$) ($ 2.45) Earnings per share (NT$) ($ 0.04)
	Weighted average of outstanding Amount after tax shares (1,000 shares) ($ 270,309) 110,486 2019 Weighted average of outstanding Amount after tax shares (1,000 shares) ($ 4,692) 110,486	Weighted average of outstanding shares (1,000 shares)
Current net loss attributable to the Company's common stock shareholders Basic earnings per share Current net income attributable to the Company's common stock shareholders
	Amount after tax ($ 4,692)
		Weighted average of outstanding shares (1,000 shares)
		110,486

The above-mentioned weighted average number of outstanding shares has been retroactively adjusted proportionally according to the 2018 capital increase by retained earnings.

(23) Additional cash flows information

Investment activities paid partially by cash:

Purchase of property, plants, and equipment Add: Other accounts payable at beginning of the period: Fees for converting land purposes (Stated in “Long-term notes and accounts payable”) Beginning balance payable - machinery and equipment (Stated in “Other accounts payable”) Less: Other accounts payable at the end of the period: Fees for converting land purposes (Stated in “Long-term notes and accounts payable”) Cash paid	2020 $ 1,599 127,577 - ( 127,577) $ 1,599	2019
		$ 1,973 127,577 - ( 127,577) $ 1,973

~43~

(24)Change of liabilities from financing activities

2020

			2020
January 1 Change of cash flows from Financing activities Other change of non-cash December 31 January 1 Change of cash flows from Financing activities Other change of non cash December 31	Short-term borrowings $1,530,000 79,599 - $1,609,599	Short-term notes payable	Lease Liabilities $ 1,975 ( 516) 1,948	Long-term	Total liabilities from financing activities
				liabilities $108,206 ( 75,661) -
		$ 130,000 - -			$ 1,770,181 3,422 1,948 $ 1,775,551 Total liabilities from financing activities
		$ 130,000	$ 3,407	$ 32,545
	Short-term borrowings $1,204,500 325,500 - $1,530,000	Short-term notes payable	Lease Liabilities $ 2,537 ( 573) 11	Long-term
				liabilities $139,292 ( 31,086) -
		$ 130,000 - -			$ 1,476,329 293,841 11 $ 1,770,181
		$ 130,000	$ 1,975	$108,206

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 (“Taroko Park”) 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 SN CORP. Subsidiaries directly held by U.S. (“SN 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.)

~44~

(2) Material Transactions with related parties

• 1.Management service income (listed as "Other income")

Taroko Park	2020 $ 500	2019 $-

The transaction prices and terms of payment for management service revenues are based on the agreements between the parties.

• 2.Compensation information for key management.

Short-term Employee Benefits	2020 $ 3,332	2019 $ 2,825

8. 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, 2020 December 31, 2019 $ 481,493 $ 481,493 161,188 181,294 971,578 997,129 1,927 1,857 $ 1,616,186 $ 1,661,773	Book value December 31, 2020 December 31, 2019 $ 481,493 $ 481,493 161,188 181,294 971,578 997,129 1,927 1,857 $ 1,616,186 $ 1,661,773	For guarantee purposes Short-term and long-term borrowings Short-term and long-term borrowings Short-term borrowings Voucher performance guarantee
	December 31, 2020
	$ 481,493 161,188 971,578 1,927 $ 1,616,186	$ 481,493 181,294 997,129 1,857 $ 1,661,773

1. Significant contingent liabilities and unrecognized contractual commitments

(1)Contingency

None

(2)Undertakings

No undertakings

10. Significant casualty losses

None

1. Major events after the reporting period

None

~45~

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, 2020 $ 2,168,657 $ 3,131,608 69	December 31, 2019 $ 2,214,991 $ 3,504,256 63

(2) Financial instruments

1. Types of financial instruments

ancial instruments ypes 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, 2020 $ 60,874 973,505 - 4,099 141 733	December 31, 2019 $ 91,968 998,986 938 6,428 2,874 378 $ 1,101,572
	$ 1,039,352

~46~

Financial assets Financial assets measured at Short-term borrowings Short-term notes and bills Notes payable Accounts payable Other accounts payable Long-term borrowings Long-term notes and Guarantee deposits received Lease liabilities		December 31, 2020 $ 1,609,599 130,000 - 3,140 15,183 32,545 127,577 755 $ 1,918,799 $ 3,407	December 31, 2019 $ 1,530,000 130,000 322 2,519 15,663 108,206 127,577 870 $ 1,915,157 $ 1,975

1. 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, short-term 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.

~47~

• 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:

~48~

(Foreign currency: functional currency) Financial assets Currency item US$ : NT$ Long-term investments accounted for using the equity method US$ : NT$ (Foreign currency: functional currency) Financial assets Currency item US$ : NT$ Long-term investments		December 31, 2020	December 31, 2020	December 31, 2020	December 31, 2020	December 31, 2020
		Sensitivity analysis Foreign currencies (NT$1,000) Exchange rate Carrying amount (NT$) Degree of variation Effect on profit or loss Effect on other comprehensive income $ 35,157 28.48 $ 1,001,271 1% $ 10,013 $ - 45,101 28.48 1,248,466 1% - 12,845 December 31, 2019 Sensitivity analysis Foreign currencies (NT$1,000) Exchange rate Carrying amount (NT$) Degree of variation Effect on profit or loss Effect on other comprehensive income $ 35,354 29.98 $ 1,059,910 1% $ 10,599 $ - 53,485 29.98 1,603,478 1% - 16,035					Sensitivity analysis
		$
				Foreign currencies (NT$1,000) Exchange rate Carrying amount (NT$) $ 35,354 29.98 $ 1,059,910 53,485 29.98 1,603,478
						Degree of variation 1% 1%		Effect on profit or loss $ 10,599 -

~49~

• D.The overall gain (loss) from the exchange (including realized and unrealized) of the Company’s currency items due to material exchange rate fluctuation was NT$52,477 and NT$31,649 in2020 and 2019 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 risk comes from short-term and long-term borrowings at a floating interest risk, and they expose the Company to cash flows interest rate risk.

  - 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 interest rate of loans increases or decreases by 1% but all remaining factors stay the same, the net profit before tax will increase by NT$16,421 and decrease by NT$16,382 in 2020 and 2019 respectively, and it is mainly caused by changes in the interest rate of floating rate loans.

• (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 financi al 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 according to credit conditions and adopts a simplified method that uses

~50~

the loss rate as the basis for estimating the expected credit loss.

• F. According to future forward-looking considerations, the Company adjusts the loss rate established based on the history of a specific period a nd current information to estimate the loss allowance of notes and accounts receivable. The provision matrix at December 31, 2020 and 2019 is as follow ：

follow：
December 31, 2020 Expected loss rate Total book value Loss allowance	Not past due		Past	due for 31 to	Past $	due for more than 91 days 100.00% 568 $ 568	Total 4,671 572
	and past due for 1 to 30days 0.34% $ 2,244 1
		for 1 to 30days 0.34% 2,244 1
			$	90 days 0.81% 1,859 3

December 31, 2019 Expected loss rate Total book value Loss allowance	Not past due and past due for 1 to 30 days 0.59% $ 6,336 3	Past	due for 31 to 90 days 1.06 % 1,035 2	Past	due for more than 91 days 100.00% 120 $ 120	Total 7,491 125
				$
		$

• 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 December 31	2020 $ 125 447 $ 572	2019
		$ - 125 $ 125

(3) Liquidity risk

• 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 at all times.

• B.When the residual cash held by each operating entity exceeds the amount

~51~

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, 2019 and 2018, the Company’s money market position was NT$90,483 and NT$30,209 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, 2020 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	In 1 year $ 1,611,948 130,000 3,140 15,183 1,331 18,978 - 393 $ 1,611,948	1 to 2 years	More than 2 years $ - - - - 842 - 127,577 362 $ -
		$ - - - - 1,306 14,048 - - $ -

December 31, 2019 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	In 1 year	1 to 2 years	More than 2 years $ - - - - - - 16,896
	$ 1,532,085 130,000 322 2,519 15,663 614 53,712	$ - - - - - 1,420 39,856

~52~

current portion of long-term debt payable)

urrent portion of long-term debt payable)
Long-term notes and accounts payable	- -	127,577
Guarantee deposits received	25 368	477

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

5. 4.Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: None

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

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

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

9. 8.Receivable from related parties amounting to at least NT$100 million or 20% of the paid-in capital: See Table 2 attached

10. Engagement in derivative instruments: None.

11. 10.Business relations and material transactions and amounts between the parent company and its subsidiaries and among the subsidiaries: See Table 3.

(2) Re-investment related information

The investee's name, location, and other related information (excluding investees in mainland China): See Table 4.

(3) Investment in mainland China

1. Basic information: None

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

(4) Major Shareholders Information

Major Shareholders Information: See Table 5.

~53~

14. Segment information

Not applicable

~54~

Table 1

Holiday Garden International Ltd. and subsidiaries

Loan funds

January 1,2020 to December 31,2020

Unit: NT$1,000

(Unless otherwise noted)

No. (Note.1) Company providing the loan Borrower Transaction item(Note2) A related party yes ornot The maximum amount of this period (Note3) Closing balance (Note 8) Actualdrawing amount Range of interestrate Type of loan fund(Note 4) Business transaction amount (Note 5) Reasons for short-term financing (Note6) Recognized amount of loss allowance N 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% Short-term financing funds $ - Operational needs $ - N 2 Holiday Garden U.S. Holiday Garden NW CORP. Receivable from related companies yes 240,870 240,870 92,520 Annual interest 3.0% Short-term financing funds - Hotel acquisition - N 2 Holiday Garden U.S. Holiday Garden VC CORP. Receivable from related companies yes 194,610 194,610 46,260 Annual interest 3.0% Short-term financing funds - Hotel acquisition - N 2 Holiday Garden U.S. Holiday Garden WC CORP. Receivable from related companies yes 584,820 584,820 429,370 Annual interest 6.5% Short-term financing funds - Hotel acquisition - N 2 Holiday Garden U.S. Holiday Garden WC CORP. Receivable from related companies yes 64,980 64,980 64,980 Annual interest 3.0% Short-term financing funds - Hotel acquisition - N 2 Holiday Garden U.S. Holiday Garden EV CORP. Receivable from related companies yes 94,950 94,950 31,650 Annual interest 6.5% Short-term financing funds - Operational needs - N 2 Holiday Garden U.S. Holiday Garden EV CORP. Receivable from related companies yes 953,680 953,680 559,362 Annual interest 6.5% Short-term financing funds Hotel acquisition - N 3 Holiday Garden SF CORP. Holiday Garden VC CORP. Receivable from related companies yes 154,200 154,200 154,200 Annual interest 3.0% Short-term financing funds - Hotel acquisition - N 3 Holiday Garden SF CORP. Holiday Garden U.S. Receivable from related companies yes 387,516 387,516 387,516 Annual interest 3.0% Short-term financing funds - Operational needs - N	Collaterals Maxi loans single ame Value one $ - $ 9,6 one - 7 one - 7 one - 7 one - 7 one - 7 one - 7 one - 9 one - 9	mum amount of permitted to a borrower(Note 7) Total amount permitted for loaning of funds （Note 7） Note 33,495 $ 19,266,990 Note 9 67,738 1,535,475 Note 9 67,738 1,535,475 Note 9 67,738 1,535,475 Note 9 67,738 1,535,475 Note 9 67,738 1,535,475 Note 9 67,738 1,535,475 Note 9 88,665 1,977,330 Note 9 88,665 1,977,330 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.

~55~

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 1,2020 to December 31,2020

Table 2 Companies of account receivable Transaction object name Holiday Garden International Ltd. Holiday Garden U.S. Holiday Garden U.S. Holiday Garden WC CORP. Holiday Garden SF CORP. Holiday Garden U.S. Holiday Garden SF CORP. Holiday Garden VC CORP. Holiday Garden U.S. Holiday Garden EV CORP. Holiday Garden WC CORP. Holiday Garden SF CORP.	Relationship Balance of Receivable from related companies (Note 1) Note 3 Account receivable：1,031,261 Note 3 Account receivable：452,974 Note 3 Account receivable：367,392 Note 3 Account receivable：142,400 Note 3 Account receivable：576,293 Note 3 Account receivable：129,096	Turnover rate Note 4 Note 4 Note 4 Note 4 Note 4 Note 4	P	ast due accounts receivable from related companies Accounts receivable re related companies afte period Amount Treatment - - $ - - - - - - - - - - - - - - - -	Unit: NT$1,000 (Unless otherwise noted) covered from rthe reporting Amount of loss allowance recognized $ - - - - - -
			$
				Amount - - - - - -

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.

~56~

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 1,2020 to December 31,2020

le 3 Number (Note 1) 1 1 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 3 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. 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 SF 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 U.S. (3) Holiday Garden U.S. (3) Holiday Garden VC CORP. (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 14.66% Processed according to the agreement between the two parties 8.80% Processed according to the agreement between the two parties 0.18% Processed according to the agreement between the two parties 1.79% Processed according to the agreement between the two parties 0.18% Processed according to the agreement between the two parties 1.79% Processed according to the agreement between the two parties 0.18% Processed according to the agreement between the two parties 1.79% Processed according to the agreement between the two parties 0.18% Processed according to the agreement between the two parties 1.79% Processed according to the agreement between the two parties 0.12% Processed according to the agreement between the two parties 1.20% Processed according to the agreement between the two parties 0.38% Processed according to the agreement between the two parties 1.21% Processed according to the agreement between the two parties 6.44% Processed according to the agreement between the two parties 3.61% Processed according to the agreement between the two parties 0.61% Processed according to the agreement between the two parties 8.19% Processed according to the agreement between the two parties 4.92% Processed according to the agreement between the two parties 5.22% Processed according to the agreement between the two parties 1.54% Processed according to the agreement between the two parties 2.02%
			Account	Amount	Transaction conditions Ratio to revenu Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties Processed according to the agreement between the two parties
			Other accounts receivable Interest income Other accounts receivable Other income Other accounts receivable Other income Other accounts receivable Other income Other accounts receivable Other income Other accounts receivable Other income Other accounts receivable Other accounts receivable Other accounts receivable Interest income Other accounts receivable Other accounts receivable Interest income Other accounts receivable Interest income Other accounts receivable	$ 1,031,261 65,306 12,816 13,298 12,816 13,298 12,816 13,298 12,816 13,298 8,544 8,865 26,641 85,440 452,974 26,743 42,720 576,293 36,494 367,392 11,436 142,400

Table 3

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4	Holiday Garden VC CORP.	Holiday Garden SF CORP.	(3)	Other accounts receivable	51,002	Processed according to the agreement between the two parties	0.73%
5	Holiday Garden NW CORP.	Holiday Garden SF CORP.	(3)	Other accounts receivable	19,539	Processed according to the agreement between the two parties	0.28%
6	Holiday Garden WC CORP.	Holiday Garden SF CORP.	(3)	Other accounts receivable	129,096	Processed according to the agreement between the two parties	1.84%
7	Holiday Garden EV CORP.	Holiday Garden SF CORP.	(3)	Other accounts receivable	98,592	Processed according to the agreement between the two parties	1.40%

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.

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Holiday Garden International Ltd. and subsidiaries

The investee's name, location, and other related information (excluding investees in mainland China) January 1,2020 to December 31,2020

Table 4

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

Holiday Internati Holiday Internati Holiday Internati Holiday Holiday Holiday Holiday Holiday	Investor Investee (Notes 1 and 2) Garden onal Ltd. Holiday Garden International Ltd. Garden onal Ltd. Holiday Garden International Ltd. Garden onal Ltd. Holiday Garden U.S. Garden U.S. Holiday Garden SF CORP. Garden U.S. Holiday Garden NW CORP. Garden U.S. Holiday Garden VC CORP. Garden U.S. Holiday Garden WC CORP. Garden U.S. Holiday Garden EV CORP.	Location Primary ite Taiwan Tourism Bermuda Investme business USA Investme business USA Tourism USA Tourism USA Tourism USA Tourism USA Tourism	business	Initial investment a	mount Previous year end $ 65,000 642,980 251,291 84,662 81,250 81,250 80,700 77,188	End of the reporting period Inve Number of shares Ratio Carrying amount 6,500,000 100 $ 47,849 ($ 12,000 100 1,284,466 ( 18,000 100 102,365 ( 170,000 100 131,822 150,000 100 39,479 ( 150,000 100 ( 13,501) ( 150,000 100 ( 156,838) ( 150,000 100 ( 163,066) (	stee’s current profit and loss (Notes 2(2)) Recognized current investment gain orloss (Note 2(3)) 2,676) ($ 2,676) 247,756) ( 247,756) 355,581) ( 355,581) 8,479 8,479 15,518) ( 15,518) 32,787) ( 32,787) 83,112) ( 83,112) 208,795) ( 208,795)	Note
				Ending of reporting period $ 65,000 642,980 251,291 84,662 81,250 81,250 80,700 77,188		Number of shares Ratio 6,500,000 100 12,000 100 18,000 100 170,000 100 150,000 100 150,000 100 150,000 100 150,000 100
			ms hotels nt nt hotels hotels hotels hotels hotels
								The Company's subsidiary The Company's subsidiary The Company's subsidiary The Company's subsidiary The Company's subsidiary The Company's subsidiary The Company's subsidiary The Company's subsidiary

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.

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Holiday Garden International Ltd. and subsidiaries Major Shareholders Information December 31,2020

Table 5

Major Shareholders Information December 31,2020 Table 5
Name of Major Shareholders YENJUAN INTERNATIONAL CO., LTD. Cathay United Bank is entrusted with the custody of the investment account of Girard-Perregaux Co. Cathay United Bank is entrusted with the custody of the investment account of Estoshi Co. Cathay United Bank is entrusted with the custody of the investment account of True Path Holdings Ltd. Cathay United Bank is entrusted with the custody of the investment account of East -West Holdings Ltd.	Shares
	Number of shares held 21,427,377 10,908,482 10,485,338 10,361,288 8,748,960	Shareholdingratio
		19.39% 9.87% 9.49% 9.37% 7.91%

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Holiday Garden International Ltd.

Financial assets measured at amortized cost - current schedule December 31, 2020

Statement 2 Item Cash in treasury and working funds Checking deposits Demand deposits: in New Taiwanese Dollars Demand deposits: in US Dollars Demand deposits: in SGD Dollars Time deposits: n New Taiwanese Dollars Time deposits: in US Dollars	Abstract USD 743,000, Exchange rate: 28.48 SGD 333.57, Exchange rate: 21.56 Expiration date: February 2,2021 -March 11,2021 Interest rate: 0.08%~0.17% Expiration date：February 2,2021 Interest rate:0.27%	Amount $ 1,088 121 14,920 21,156 7 15,038 8,544 $ 60,874

Statement 1 on Page 1

Holiday Garden International Ltd.

Financial assets measured at amortized cost - current schedule December 31, 2020

Statement 2

Statement 2
Name Cathay United Bank CTBC Bank CTBC Bank O-Bank Co., Ltd. O-Bank Co., Ltd. O-Bank Co., Ltd. O-Bank Co., Ltd. O-Bank Co., Ltd. O-Bank Co., Ltd.	Abstract New Taiwan Dollar Demand Deposits US Dollar Time Deposits US Dollar Time Deposits US Dollar Time Deposits US Dollar Time Deposits US Dollar Time Deposits US Dollar Time Deposits US Dollar Time Deposits US Dollar Time Deposits	Contract Period - 2020.12.08-2020.04.08 2020.10.28-2021.04.28 2020.12.26-2021.03.26 2020.12.25-2021.01.25 2020.12.17-2021.06.17 2020.09.08-2021.03.18 2020.10.12-2021.04.12 2020.11.12-2021.05.12	Amount $ 1,927 429,805 118,810 402,705 2,874 2,859 2,848 3,133 8,544 $973,505	Interest Rate - 0.15% 0.25% 0.41% 0.41% 0.37% 0.45% 0.38% 0.31%	Note
					Note Note Note Note Note Note Note Note Note

Statement 2 on Page 1

Unit: NT$1,000

Statement 3

Holiday Garden International Ltd.
Statement of changes in investment property accounted for using the equity method
January 1 to Decembe 31, 2020

Opening balance Add (Note 1) Name Number of shares Amount Number of shares Amount HOLIDAY GARDEN INTERNATIONAL Ltd. 12,000 $1,603,478 - - Holiday Garden Development Co., Ltd 6,500,000 50,525 - - $1,654,003 -	Opening balance Add (Note 1) Name Number of shares Amount Number of shares Amount HOLIDAY GARDEN INTERNATIONAL Ltd. 12,000 $1,603,478 - - Holiday Garden Development Co., Ltd 6,500,000 50,525 - - $1,654,003 -	Opening balance Add (Note 1) Name Number of shares Amount Number of shares Amount HOLIDAY GARDEN INTERNATIONAL Ltd. 12,000 $1,603,478 - - Holiday Garden Development Co., Ltd 6,500,000 50,525 - - $1,654,003 -	Less (Note) Number of shares Amount - ($ 319,012) - ( 2,676) ($ 321,688)	Closing balance	Closing balance	Closing balance	Amount 1,284,466 47,849	Market price or net equity	Guarantee provision or pledge condition Note None None
	Amount Number of shares $1,603,478 - 50,525 - $1,654,003			Number of shares 12,000 6,500,000	% shareholding 100% $ 100% $			Unit price ($) Total price Evaluation basis $ 107,039 $ 1,284,466 Equity Law 7.3647,849 Equity Law $ 1,332,315
		- -			100% 100%			$ 107,039 7.36
		-				$	1,332,315

Note : The decrease in the current period represents translation differences in the financial statements of foreign operating institutions and shares in subsidiaries, affiliates and joint ventures recognized under the equity method in the current period.

Statement 3 on Page 1

Holiday Garden International Ltd. - Statement of short term borrowings December 31, 2020

Unit: NT$1,000

Statement4

Statement4
Type of borrowings Description Unsecured loans from banks Hua Nan Commercial Bank – East Kaohsiung Branch Unsecured loans from banks Export-Import Bank of Republic of China Unsecured loans from banks Export-Import Bank of Republic of China Unsecured loans from banks Export-Import Bank of Republic of China Unsecured loans from banks Export-Import Bank of Republic of China Secured bank loans CTBC Bank Secured bank loans CTBC Bank Secured bank loans O-Bank Secured bank loans O-Bank		Closing balance Contract term $ 30,000 2020.10.16~2021.01.15 35,000 2020.05.05~2021.05.05 10,000 2020.07.16~2021.07.16 10,000 2020.12.16~2021.12.16 5,000 2020.08.16~2021.08.15 400,000 2020.10.30~2021.04.30 100,000 2020.10.30~2021.04.30 400,000 2020.12.07~2021.01.07 619,599 2020.12.07~2021.01.07 $ 1,609,599	Range of interest rates Financing amount Pledges or collaterals 1.21% $ 30,000 None 1.06% 35,000 None 1.06% 10,000 None 1.06% 45,000 None 1.06% 5,000 None 1.00% 400,000 Time deposit 1.00% 600,000 Time deposit 0.94% 400,000 Time deposit 1.62% 619,599 Land, Building and Construction	Note:

Statement 4 on Page 1

Holiday Garden International Ltd. - Statement of short term notes and bills payable December 31, 2020

Statement 5

Unit: NT$1,000

Item Commercial paper Commercial paper Commercial paper	Guarantee Institution	Contract term 2020.12.07~2021.01.06 2020.12.23-2021.01.19 2020.12.18-2021.01.15	Range of	Range of		Amount	Book value $ 50,000 50,000 30,000 $ 130,000	Note:
				interest rates 0.59% 0.90% 0.55%	Amount $ 50,000 50,000 30,000 $ 130,000	Unamortized discounts $ - - - $-
	China Bills Finance Corporation Mega Bills Finance Co., Ltd. International Bills Finance Corporation

Statement 5 on Page 1

Holiday Garden International Ltd. - Statement of long term borrowings December 31, 2020

Unit: NT$1,000

Statement 6

Statement 6							Unit:	NT$1,000
Creditor First Commercial Bank, Sanmin Branch Hua Nan Commercial Bank – East Kaohsiung Branch	Summary	Amount of Borrowing $ 20,878 11,667 32,545 ( 18,597) $ 13,948	Amount of Borrowing	Contract term 2012.09.18~2022.09.18 2019.09.20~2022.09.20	Interest 1.60% 1.10%	Financing amount $ 58,678 20,000	Pledges or Collaterals Land, buildings and structures None	Note:
	Unsecured loans (10 years) Unsecured loans (3 years) Less: Current portion of loans payable

Statement 6 on Page 1

Unit: NT$1,000

Holiday Garden International Ltd. Statement of operating cost January 1 to Decembe 31, 2020

Statement 7

Item Beginning foodservice inventory Current material purchased Transfer to operating expenses Ending foodservice inventory Current material consumed Foodservice and accommodation cost Beginning foodservice inventory Current material purchased		Amount $ 993 12,750 796) 925) 12,022 29,599 $ 41,621 $ 993 12,750	Note:
	( (

Statement 7 on Page 1

Holiday Garden International Ltd. Statements of operating expenses January 1 to Decembe 31, 2020

Unit: NT$1,000 Statement 8 Item Abstract Amount Note: Salary and wage expense $ 40,824 Miscellaneous expenses 5,590 Various depreciation 6,868 Utility expense 5,357 The balance does not exceed Taxes 36,386 5% of this account. $ 95,025

Statement 8 on Page 1

Holiday Garden International Ltd. Aggregation of employee

benefit, depreciation, and amortization expenses by function January 1 to December 31 of 2020 and 2019

Unit: NT$1,000

Statement 9

Statement9				Unit: NT$1,000	Unit: NT$1,000	Unit: NT$1,000
Function Type	2020			2019
	Under operating cos	Under operating expenses	Total	Under operating cos	Under operating expenses	Total
Employee benefit expense (See note)	$9,019	$45,351	$45,351	$9,597	$48,191	$ 57,788
Wages and salaries	7,615	36,722	36,722	8,092	39,387	47,479
Health and labor insurance expense	959	3,952	3,952	890	4,014	4,904
Pension expense	330	2,182	2,182	458	1,966	2,424
Board of director renumeration		1,920	1,920	-	1,965	1,965
Other employee benefit expense	115	575	575	157	859	1,016
Other employee benefit expense	19,342	6,868	6,868	21,756	7,080	28,836

Note:1. As of December 13, 2020 and 2019, the Company had 115 employees and 117 employees respectively, and among them, there were 3 and 5 directors respectively who were not the

Company’s employees.

1. Companies whose shares are listed on a stock exchange or traded on an over-the-counter trading center should disclose the Information as following:

(1) The average of employee benefit this year $468; he average of employee benefit last year $498.

(2) The average of employee salary this year $396; he average of employee salary last year $424.

(3) The average of employee salary adjustment (6.60%).

(4)The Parent Company has established an audit committee to replace the supervisors in accordance with the regulations, therefore, no supervisors' remuneration has been recognized.

Statement 9 on Page 1