KEDGE — Interim / Quarterly Report 2021

Nov 1, 2021

Stock Code: 2546

KEDGE CONSTRUCTION CO., LTD. and Subsidiaries

Consolidated Financial Statements with Independent Auditors' Review Report

From January 1 to June 30, 2021 and 2020

Address: 6F., No. 131, Sec. 3, Heping E. Rd., Taipei City, Taiwan, R.O.C. Tel: (02)23786789

The reader is advised that these consolidated financial statements have been prepared originally in Chinese. In the event of a conflict between these financial statements and the original Chinese version or difference in interpretation between the two versions, the Chinese language financial statements shall prevail

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Table of Contents

Item 1. Cover Page 2. Table of Contents 3. Independent Auditors' Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Company History (2) Approval Date and Procedures of the Financial Statements (3) Application of New, Amended, and Revised Standards and Interpretations (4) Summary of Significant Accounting Policies (5) Significant Accounting Judgments and Major Sources of Estimation and Assumption Uncertainty (6) Description of Significant Accounting Items (7) Related-Party Transactions (8) Pledged Assets (9) Significant Contingent Liabilities and Unrecognized Contract Commitments (10) Significant Disaster Loss (11) Significant Events after the End of the Financial Reporting Period (12) Others (13) Supplementary Disclosures 1. Information on significant transactions 2. Information on investees 3. Information on investments in Mainland China 4. Information on major shareholders (14) Segment Information

**Page **

1 2 3 4 5 6 7 8 8 8～9 9～10 10 11 ~ 23 24～26 26 26～27 27 27 27 28～30 30～31 31 31 31

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Independent Auditors' Review Report

To the Board of Directors of Kedge Construction Co., Ltd.:

Introduction

We have audited the consolidated balance sheets of Kedge Construction Co., Ltd. and its subsidiaries as of June 30, 2021 and 2020, the consolidated statements of comprehensive income for the three-month periods from April 1 to June 30, 2021 and 2020, and for the six-month periods from January 1 to June 30, 2021 and 2020, the consolidated statements of changes in equity, and cash flows for the six-month periods from January 1 to June 30, 2021 and 2020 as well as notes to the consolidated financial statements (including a summary of significant accounting policies) for the period then ended. It is the management's responsibility to prepare a set of fairly presented consolidated financial statements in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" and IAS 34 Interim Financial Reporting as endorsed, issued, and effected by the Financial Supervisory Commission (FSC). Our responsibility is to provide a conclusion on the consolidated financial statements based on our reviews.

Scope

We conducted our reviews in accordance with the Statement of Auditing Standards No. 65, "Review of Financial Information Performed by the Independent Auditor of the Entity" in the Republic of China. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. Since a review is substantially less in scope than an audit, we might not be fully aware of all material matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our reviews, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material aspects of the consolidated financial position of Kedge Construction Co., Ltd. and its subsidiaries as of June 30, 2021 and 2020 and their consolidated financial performance for the three-month periods then ended and for the six-month periods then ended, and their consolidated cash flows for the six-month periods then ended in accordance with the "Regulations Governing the Preparation of Financial Reports by Public Banks," "Regulations Governing the Preparation of Financial Reports by Securities Issuers," and "IAS 34 - Interim Financial Reporting" approved and issued by FSC.

KPMG

Taipei, Taiwan

Republic of China August 6, 2021

Notices to Readers

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

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

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As of June 30, 2021 and 2020, only reviewed, not audited in accordance with the laws and regulations and generally accepted audit principles.

KEDGE CONSTRUCTION CO., LTD. and Subsidiaries

Consolidated Balance Sheets

June 30, 2021, December 31, 2020 and June 30, 2020

Unit: Thousand NTD

Assets Current assets: 1100 Cash and cash equivalents (Notes 6(1) and (18)) 1110 Financial assets at fair value through profit or loss - current (Notes 6(2) and (18)) 1140 Contract assets- current (Notes 6(15) and 7) 1170 Notes and accounts receivable, net (Notes 6(4), (15) and (18)) 1180 Notes and accounts receivable - related-parties, net (Notes 6(15) and (18) and 7) 1410 Prepayments 1470 Other current assets 1476 Other financial assets - current (Notes 6(18) and 8) Non-current assets: 1550 Investments accounted for using equity method (Note 6(5)) 1517 Financial assets at fair value through other comprehensive income - non-current (Notes 6(3) and (18)) 1600 Property, plant and equipment (Note 6(6) and 8) 1755 Right-of-use assets 1760 Investment property, net (Notes 6(7) and 8) 1840 Deferred tax assets (Note 6(12)) 1975 Net defined benefit assets - non-current (Note 6(11)) 1980 Other financial assets - non-current (Note 6(18)) Total assets	2021.6.30 Amount % $ 4,202,298 47 68,696 1 1,903,974 22 595,787 7 986,517 11 90,350 1 58,460 1 215,314 2	2020.12.31 Amount % 4,108,192 44 44,039 - 1,441,162 16 939,444 10 1,888,856 20 93,656 1 35,855 - 201,785 2	2020.6.30 Amount % 2,877,363 31 41,375 - 2,106,256 23 1,355,471 14 1,933,838 21 139,327 2 22,540 - 289,496 3 8,765,666 94 20,275 - 335,459 4 116,718 1 9,849 - 102,310 1 23,692 - 1,308 - 7,295 - 616,906 6 9,382,572 100 2100 2130 2150 2170 2200 2230 2300 2552 2600 3100 3200 3300 3400 36XX
	8,121,396 92	8,752,989 93
	18,719 - 422,171 5 128,214 2 10,505 - 101,844 1 36,661 - 3,352 - 15,464 -	20,507 - 363,370 4 133,739 2 11,768 - 102,077 1 34,635 - 3,400 - 11,171 -
	736,930 8	680,667 7
	$ 8,858,326 100	9,433,656 100

Liabilities and equity Current liabilities: Short-term loans (Notes 6(8), (18) and 8) Contract liabilities- current (Note 6(15)) Notes payable (Note 6(18)) Accounts payable (Note 6(18)) Other payables (Note 6(12) and (18)) Current tax liabilities Other current liabilities (Note 6(18)) Non-current liabilities: Warranty long-term provisions (Note 6(9)) Other non-current liabilities (Note 6(18)) Total liabilities Equity attributable to owners of the parent company (Note 6(13)): Share capital Capital reserve Retained earnings Other equity Total equity attributable to owners of parent company Non-controlling interests Total equity Total liabilities and equity	2021.6.30 Amount % $ - - 896,458 10 289,786 3 3,646,549 41 206,111 3 92,173 1 25,923 -	2020.12.31 Amount % 150,000 2 1,525,341 16 335,247 3 3,749,899 40 315,681 3 118,771 1 7,110 -	2020.6.30 Amount % 150,000 2 1,445,329 15 432,796 5 3,850,101 41 511,395 5 85,680 1 73,022 1
	5,157,000 58	6,202,049 65	6,548,323 70
	163,687 2 10,005 -	150,363 2 11,966 -	101,489 1 10,280 -
	173,692 2	162,329 2	111,769 1
	5,330,692 60	6,364,378 67	6,660,092 71
	1,060,357 12 518,401 6 1,745,244 20 203,439 2	1,060,357 11 518,294 6 1,345,805 14 144,653 2	1,060,357 11 518,305 6 1,026,912 11 116,749 1
	3,527,441 40	3,069,109 33	2,722,323 29
	193 -	169 -	157 -
	3,527,634 40	3,069,278 33	2,722,480 29
	$ 8,858,326 100	9,433,656 100	9,382,572 100

(Please see the Notes to the Consolidated Financial Statements.)

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Reviewed, not audited in accordance with the laws and regulations and generally accepted audit principles. KEDGE CONSTRUCTION CO., LTD. and Subsidiaries

Consolidated Statements of Comprehensive Income

April 1 to June 30, 2021 and 2020, and January 1 to June 30, 2021 and 2020

Unit: Thousand NTD

4000 Operating revenue (Notes 6(10), (15) and 7) 5000 Operating costs (Notes 6(11) and 12) Gross profit Operating expenses: 6200 Administrative expenses (Notes 6(11), (16), 7, and 12) 6450 Expected credit loss (Note 6(4)) Net operating profit Non-operating income and expenses: 7100 Interest income (Note 6(17)) 7010 Other income (Note 6(17)) 7020 Other gains and losses (Note 6(17)) 7050 Finance costs (Note 6(17)) 7060 Share of gains or loss of associates and joint ventures accounted for using the equity method (Note 6(5)) Profit before tax from continuing operating department 7950 Less: Income tax expenses (Note 6(12)) Net income 8300 Other comprehensive income: 8310 Items that will not be reclassified to profit or loss 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8300 Other comprehensive income, net of tax Total comprehensive income for the period Net income attributable to: Owners of the parent company 8620 Non-controlling interests Total comprehensive income attributable to: Owners of the parent company Non-controlling interests Earnings per share (NT$) (Note 6(14)) 9750 Basic earnings per share (NT$) 9850 Diluted earnings per share (NT$)	Apr.- Jun., 2021 Amount % $ 2,531,513 100 2,129,099 84	Apr.- Jun., 2021 Amount % $ 2,531,513 100 2,129,099 84	Apr.- Jun., 2020 Amount % 4,035,649 100 3,683,080 91	Apr.- Jun., 2020 Amount % 4,035,649 100 3,683,080 91	Jan.- Jun., 2021 Amount % 5,176,778 100 4,574,719 88	Jan.- Jun., 2021 Amount % 5,176,778 100 4,574,719 88	Jan.- Jun.,	2020
	Amount $ 2,531,513 2,129,099		Amount 4,035,649 3,683,080		Amount 5,176,778 4,574,719		Amount 6,807,853 6,268,080	% 100 92
	402,414	16	352,569	9	602,059	12	539,773	8
	77,197 -	3 -	67,689 11,383	2 -	143,622 -	3 -	130,309 11,383	2 -
	325,217	13	273,497	7	458,437	9	398,081	6
	4,180 3,067 15,414 (56) (1,796)	- - 1 - -	2,500 544 5,331 (681) 49	- - - - -	5,649 3,199 24,690 (228) (1,788)	- - - - -	4,466 1,274 (8,839) (1,317) (231)	- - - - -
	20,809	1	7,743	-	31,522	-	(4,647)	-
	346,026 63,543	14 3	281,240 58,850	7 1	489,959 90,511	9 1	393,434 84,620	6 1
	282,483	11	222,390	6	399,448	8	308,814	5
	(4,918)	-	89,082	2	58,801	1	(9,413)	-
	(4,918)	-	89,082	2	58,801	1	(9,413)	-
	$ 277,565	11	311,472	8	458,249	9	299,401	5
	$ 282,477 6	11 -	222,388 2	6 -	399,439 9	8 -	308,815 (1)	5 -
	$ 282,483	11	222,390	6	399,448	8	308,814	5
	$ 277,560 5	11 -	311,442 30	8 -	458,225 24	9 -	299,397 4	5 -
	$ 277,565	11	311,472	8	458,249	9	299,401	5
	$	2.66		2.10		3.77		2.91
	$	2.65		2.10		3.74		2.91

(Please see the Notes to the Consolidated Financial Statements)

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Reviewed, not audited in accordance with the laws and regulations and generally accepted audit principles. KEDGE CONSTRUCTION CO., LTD. and Subsidiaries

Consolidated Statements of Changes in Equity

January 1 to June 30, 2021 and 2020

Unit: Thousand NTD

Balance as of January 1, 2020 Net income Other comprehensive income for the period Total comprehensive income for the period Earnings appropriation and distribution: Legal reserve appropriated Cash dividends of common stocks Unclaimed dividends after effective period Balance as of June 30, 2020 Balance as of January 1, 2021 Net income Other comprehensive income for the period Total comprehensive income for the period Unclaimed dividends after effective period Balance as of June 30, 2021		Equity attributable to owners ofthe parent company	Equity attributable to owners ofthe parent company	Equity attributable to owners ofthe parent company	Equity attributable to owners ofthe parent company	Equity attributable to owners ofthe parent company	Non-controlli nginterests Totalequity 161 2,741,122 (1) 308,814 (3) (9,413) (4) 299,401 - - - (318,107) - 64 157 2,722,480 169 3,069,278 9 399,448 15 58,801 24 458,249 - 107 193 3,527,634
	Share capital	Capital reserve	Retained earnings			Otherequity Unrealized gains (losses) from financial assets at fair value through other comprehensive income Total equity attributable to owners of the parent company
	Share capital of common stocks		Legal reserve	Unappropriat ed earnings	Total
	$ 1,060,357	518,241	241,986	794,218	1,036,204	126,159 2,740,961
	- -	- -	- -	308,815 -	308,815 -	- 308,815 (9,410) (9,410)
	-	-	-	308,815	308,815	(9,410) 299,405
	- - -	- - 64	40,325 - -	(40,325) (318,107) -	- (318,107) -	- - - (318,107) - 64
	$ 1,060,357	518,305	282,311	744,601	1,026,912	116,749 2,722,323
	$ 1,060,357	518,294	282,311	1,063,494	1,345,805	144,653 3,069,109
	- -	- -	- -	399,439 -	399,439 -	- 399,439 58,786 58,786
	-	-	-	399,439	399,439	58,786 458,225
	-	107	-	-	-	- 107
	$ 1,060,357	518,401	282,311	1,462,933	1,745,244	203,439 3,527,441

(Please see the Notes to the Consolidated Financial Statements.)

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Reviewed, not audited in accordance with the laws and regulations and generally accepted audit principles. KEDGE CONSTRUCTION CO., LTD. and Subsidiaries

Consolidated Statements of Cash Flows

January 1 to June 30, 2021 and 2020

Unit: Thousand NTD

Cash flows from operating activities: Income before income tax Adjustments: Adjustments to reconcile profit (loss) Depreciation Expected credit loss Net (profit) loss on financial assets or liabilities at fair value through profit or loss Interest expenses Interest income Dividend income Share of loss of associates and joint ventures accounted for using the equity method Gain or loss on disposal of property, plant and equipment Total adjustments to reconcile profit (loss) Changes in operating assets and liabilities: Net changes in operating assets: Decrease in financial instruments mandatorily measured at fair value through profit or loss Increase in contract assets Decrease (increase) in notes and accounts receivable Decrease (increase) in notes and accounts receivable - related parties Decrease in prepayments Increase in other current assets Increase in other financial assets Decrease in net defined benefit assets, non-current- Total changes in operating assets Changes in operating liabilities: (Decrease) increase in contract liabilities (Decrease) increase in notes payable (Decrease) increase in accounts payable Decrease in other payables Increase (decrease) in provisions Increase in other current liabilities (Decrease) increase in other non-current liabilities Total changes in operating liabilities Total changes in operating assets and liabilities Total adjustments Cash flows generated from operations Interests received Dividend received Interest paid Income taxes paid Net cash flows generated from operating activities Cash flows from investing activities: Acquisition of property, plant and equipment Disposal of property, plant and equipment Decrease in other financial assets Net cash flows used in investing activities Cash flows from financing activities: Increase in short-term loans Decrease in short-term loans Increase in short-term notes and bills payable Decrease in short-term notes and bills payable Repayments of lease liabilities Net cash flows used in financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of the period Cash and cash equivalents at end of the period	Jan.- Jun., 2021	Jan.- Jun., 2020 393,434 2,652 11,383 8,759 1,317 (4,466) (412) 231 -
	$ 489,959 9,842 - (24,657) 228 (5,649) (2,935) 1,788 (33)
	(21,416)	19,464
	- (462,812) 343,657 902,339 3,306 (22,605) (13,886) 48	23,984 (511,548) (239,266) (20,463) 66,356 (16) (46,122) 53
	750,047	(727,022)
	(628,883) (45,461) (103,350) (109,463) 13,324 18,357 (269)	457,218 70,885 250,750 (65,588) (993) 52,971 270
	(855,745)	765,513
	(105,698)	38,491
	(127,114)	57,955
	362,845 3,975 264 (228) (119,135)	451,389 4,876 264 (1,317) (48,934)
	247,721	406,278
	(2,864) 76 409	(55,328) - 660
	(2,379)	(54,668)
	- (150,000) 120,000 (120,000) (1,236)	81,000 (81,000) 50,000 (50,000) (656)
	(151,236)	(656)
	94,106 4,108,192	350,954 2,526,409
	$ 4,202,298	2,877,363

(Please see the Notes to the Consolidated Financial Statements.)

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Reviewed, not audited in accordance with the laws and regulations and generally accepted audit principles.

KEDGE CONSTRUCTION CO., LTD. and Subsidiaries

Notes to the Consolidated Financial Statements

From January 1 to June 30, 2021 and 2020

(In Thousands of New Taiwan Dollars, unless otherwise specified)

1. Company History

Kedge Construction Co., Ltd. (hereinafter referred to as "the company") was incorporated on April 13, 1982, located at 6F., No. 131, Sec. 3, Heping E. Rd., Taipei City, Taiwan. The company and its subsidiaries (hereinafter referred to as "the group") primarily engage in comprehensive construction and the development, lease, sale, etc. of housing and building.

2. Approval Date and Procedures of the Financial Statements

The consolidated financial statements were approved and issued on August 6, 2021 by the Board of Directors.

3. Application of New, Amended, and Revised Standards and Interpretations

• (1) Impact of adoption of new, revised or amended standards and interpretations endorsed by the FSC

The group has adopted the newly recognized IFRSs specified above since January 1, 2021, and assessed that the application will not have a material impact on the consolidated financial statements.

• ‧ Amendments to IFRS 4 "Temporary Exemption from Applying IFRS 9"

• ‧ Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4, and IFRS 16 "Interest Rate Benchmark Reform - Phase 2"

The group has adopted the newly recognized IFRSs specified above since April 1, 2021, and assessed that the application will not have a material impact on the consolidated financial statements.

• ‧ Amendments to IFRS 16 "COVID-19-Related Rent Concessions after June 30, 2021"

• (2) Impact of IFRSs endorsed by the FSC but yet to come into effect

The following new amendments to IFRSs will be effective from January 1, 2022, and their possible impacts are described below:

1. Amendments to IAS 37 "Onerous Contracts - Cost of Fulfilling a Contract"

The amendment stated that the cost of fulfilling a contract comprises incremental costs and allocations of costs that relate directly to contract, and it should be applied to contracts where all obligations remain outstanding on January 1, 2022. The group may need to recognize a larger amount or quantity of provisions, and it is currently assessing the impact of this amendment on the financial position and operating results of the Group.

2. Others

The group anticipates that the application of the following newly amended IFRSs will not have a material impact on the consolidated financial statements.

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• ‧ Amendments to IAS 16 "Property, Plant and Equipment - Proceeds before Intended Use"

• ‧ Annual Improvements to IFRS Standards during 2018 - 2020 Cycle-

• ‧ Amendments to IFRS 3 "Reference to the Conceptual Framework"

• (3) Impact of IFRSs issued by the IASB but yet to be endorsed by the FSC

The table below lists the impact of IFRSs issued by the IASB but yet to be endorsed by the FSC, and the possible impacts on the group are as follows:

New, revised or amended standards and interpretations Amendments to IAS 1 "Classify Liabilities as Current or Non-current"	Main amendments The amendments are to promote consistency in applying the standards by helping companies determine whether debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due within one year) or non-current in the balance sheet. The amendments also clarify the classification requirements for debts that may be repaid through conversion into equity.	Effective date released by the IASB
		January 1, 2023

The group is in the process of evaluating the impact on the consolidated financial position and performance of the adoption of the standards and interpretations mentioned above, and the group will disclose relevant impacts when the evaluation is completed.

The group anticipates that the application of the following other newly published and amended but recognized IFRSs will not have a material impact on the consolidated financial statements.

• ‧Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between an Investor and its Associate or Joint Venture"

• ‧IFRS 17 "Insurance Contracts" and amendments to IFRS 17

• ‧ Amendments to IAS 1 "Disclosure of Accounting Policies"

• ‧ Amendments to IAS 8 "Definition of Accounting Estimates"

• ‧ Amendments to IAS 12 "Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction"

4. Summary of Significant Accounting Policies

• (1) Compliance statement

The consolidated financial statements are prepared in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" (hereinafter "the Regulations") and the IAS 34 - Interim Financial Reporting approved and issued by the FSC. The consolidated financial statements do not contain all necessary information that should be disclosed in the annual consolidated financial statements in accordance with the International Financial Reporting Standards, International Accounting Standard, and the explanations and interpretations endorsed by the FSC (hereinafter referred to as the "IFRSs endorsed by the

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FSC").

Apart from the matters described in the following paragraphs, the major accounting policies adopted by the consolidated financial statements are the same as those adopted by the 2020 consolidated financial statements. For related information, please refer to Note 4 to the 2020 consolidated financial statements.

(2) Basis of consolidation

1. Subsidiaries included in the consolidated financial statements

Nature of business Name of investor Subsidiary name

Percentage of ownership 2021.6.30 2020.12.31 2020.6.30 Explanation

The Company Guanqing Electromechanical Co., Ltd. (Guanqing Electromechanical) Electrical equipment installation and fire safety equipment installation, etc. The Company Jiequn Investment Co., Ltd. (Jiequn Investment) General Investment Jointly held by Guanqing Electromechanical and Jiequn Investment Dingtian Construction Co., Ltd. (Dingtian Construction) The comprehensive construction industry, etc.

99.96% 99.96% 99.96% The company holds directly more than 50% of the issued voting share in the subsidiary. 99.98% 99.98% 99.98% The company holds directly more than 50% of the issued voting share in the subsidiary. 100.00% 100.00% 100.00% The company holds indirectly more than 50% of the issued voting share in the subsidiary.

1. Subsidiaries not absorbed into the consolidated financial statements: None.

(3) Income tax

The group measures and discloses the interim income tax expenses in accordance with Paragraph B12 of IAS 34 - Interim Financial Reporting.

Income tax expense is the best estimate of the amount that net income before tax for the period multiplies by the management's best estimate of the annual effective tax rate. The income tax expense is fully recognized as current period tax expenses.

(4) Employee benefits

The pension of defined benefit plan for the interim period is calculated based on the actuarial cost ratio determined by the actuarial calculation at the end of the previous fiscal year. The calculation term is from the beginning of the period to the end of the period, and adjustments will be made for post-period major market fluctuations, curtailment, settlement, or other significant one-time matters.

5. Significant Accounting Judgments and Major Sources of Estimation and Assumption Uncertainty

The preparation of the consolidated financial statements in conformity with IAS 34 - Interim Financial Reporting endorsed by the FSC requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. The actual results may differ from the estimates.

In preparing the consolidated financial statements, the significant judgments made by management when adopting the accounting policies of the group and the major sources of uncertainty over estimation are consistent with Note 5 to the 2020 consolidated financial statements.

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6. Description of Significant Accounting Items

Apart from the matters described in the following paragraphs, the descriptions of significant accounting items in the consolidated financial statements bear no significant difference from those adopted by the 2020 consolidated financial statements. For related information, please refer to Note 6 to the 2020 consolidated financial statements.

• (1) Cash and cash equivalents

Cash and cash equivalents
		2021.6.30	**2020.12.31 **	2020.6.30
Cash and petty cash	$	610	710	710
Demand deposits		1,074,333	224,793	516,507
Check deposits		1,496,497	503,467	380,436
Time deposits		-	1,548	440
Cash equivalents		1,630,858	3,377,674	1,979,270
Cash and cash equivalents	$	4,202,298	4,108,192	2,877,363
The maturity dates of the aforementioned cash equivalents are in the periods, Jul. 2021, Jan. -
Mar. 2021, and Jul. - Aug. 2020, and	the	interest rate collars are 0.22%~0.25%, 0.24%~0.26%,
and 0.30%~0.35%, respectively.
For the disclosed information on the	interest rate risk and sensitivity analysis			of the financial
assets and liabilities of the Consolidated Company, please refer to Note 6(18).
Financial assets at fair value through profit or loss
		2021.6.30	**2020.12.31 **	2020.6.30
Financial assets mandatorily
classified as at fair value through
profit or loss:
Non-derivative financial assets
TWSE (or TPEx) listed	$	68,696	44,039	41,375
company shares

The maturity dates of the aforementioned cash equivalents are in the periods, Jul. 2021, Jan. - Mar. 2021, and Jul. - Aug. 2020, and the interest rate collars are 0.22%~0.25%, 0.24%~0.26%, and 0.30%~0.35%, respectively.

For the disclosed information on the interest rate risk and sensitivity analysis of the financial assets and liabilities of the Consolidated Company, please refer to Note 6(18).

• (2) Financial assets at fair value through profit or loss

As of June 30, 2021, December 31, 2020, and June 30, 2020, none of the financial assets of the group has been pledged as collateral.

• (3) Financial assets at fair value through other comprehensive income

Equity instruments measured at fair value through other comprehensive income: Domestic TWSE (or TPEx) listed company shares - Kindom Development Co., Ltd. Domestic non-TWSE (nor TPEx) listed company shares - Commonwealth Publishing Company Total	2021.6.30		2020.12.31	2020.6.30 329,920 5,539 335,459
	$ 415,455 6,716		357,545 5,825
	$ 422,171		363,370

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1. Equity instrument investments measured at fair value through other comprehensive income

   • The equity instrument investment held by the group is a long-term strategic investment and not held for trading purposes, so it has been designated to be measured at fair value through other comprehensive income.

2. The group did not dispose of strategic investment in the period from January 1 to June 30, 2021 and 2020. The accumulated gains and losses in that period have not been transferred within the equity.

3. None of the financial assets of the group has been pledged as collateral.

4. For credit risk (including impairment of debt instrument investment) and market risk information, please refer to Note 6(18).

5. (4) Notes and accounts receivable

Accounts Receivable Less: Allowance for losses	2021.6.30 $ 595,787 -	2020.12.31 939,444 -	2020.6.30 1,366,854 (11,383) 1,355,471
	$ 595,787	939,444

The group adopts the simplified method to estimate the expected credit loss for all notes receivable and accounts receivable, that is, to measure lifetime expected credit losses. For this measuring purpose, the group considers the past default records of clients, the current financial circumstances, the industrial economic situation, and the industrial outlook at the same time. The expected credit loss of notes receivable and accounts receivable of the group is analyzed as follows:

Not past due Not past due Not past due Past due 90 days and above		2021.6.30	Allowance for lifetime expected credit losses - Allowance for lifetime expected credit losses - Allowance for lifetime expected credit losses - 11,383 11,383
	Book value of notes and accounts receivable $ 595,787	Weighted average expected credit loss rate - 2020.12.31
	Book value of notes and accounts receivable $ 939,444	Weighted average expected credit loss rate - 2020.6.30
	Book value of notes and accounts receivable $ 1,355,471 11,383	Weighted average expected credit loss rate - 100%
	$ 1,366,854

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Changes of loss allowance for notes receivable and accounts receivable of the Consolidated Company is as follows:

Beginning balance Impairment losses recognized Ending balance		Jan.- Jun., 2021 $ - - $ -	Jan.- Jun., 2020
			- 11,383 11,383

• (5) Investments accounted for using equity method

Investments of the group under equity method at reporting date are listed below:

ReadyCom eServices Corp.	2021.6.30		**2020.12.31 **		2020.6.30 20,275
	$ 18,719		20,507

As of June 30, 2021, December 31, 2020, and June 30, 2020, none of the investments accounted for using equity method of the group has been pledged as collateral.

• (6) Property, plant and equipment

Details of changes in cost, depreciation, and impairment loss of property, plant and equipment of the group are as follows:

Cost or deemed cost: Balance as of January 1, 2021 Addition Disposal Balance as of June 30, 2021 Balance as of January 1, 2020 Addition Balance as of June 30, 2020 Depreciation and impairment losses: Balance as of January 1, 2021 Depreciation for the year Disposal Balance as of June 30, 2021 Balance as of January 1, 2020 Depreciation for the year Balance as of June 30, 2020 Book value: January 1, 2021 June 30, 2021 January 1, 2020 June 30, 2020	Land Buildings $ 62,430 36,313 - - - -	Transportation equipment	Others equipment 58,969 2,864 - 61,833 407 55,329 55,736 7,826 6,174 - 14,000 407 1,684 2,091 51,143 47,833 - 53,645		Total 159,642 2,864 (1,930)
		1,930 - (1,930) - 1,930 - 1,930 1,887 - (1,887) - 1,876 5 1,881 43 - 54 49
	$ 62,430 36,313				160,576
	$ 62,430 14,969 - -				79,736 55,329
	$ 62,430 14,969				135,065
	$ - 16,190 - 2,172 - -				25,903 8,346 (1,887)
	$ - 18,362				32,362
	$ - 14,337 - 38				16,620 1,727
	$ - 14,375				18,347
	$ 62,430 20,123				133,739
	$ 62,430 17,951				128,214
	$ 62,430 632				63,116
	$ 62,430 594				116,718

As of June 30, 2021, December 31, 2020, and June 30, 2020, for information regarding the group's property, plant and equipment pledged as collateral, please refer to Note 8.

13

(7) Investment property

Investment property
Book value: January 1, 2021 June 30, 2021 January 1, 2020 June 30, 2020		Land and buildings $ 102,077
		$ 101,844
		$ 102,544
		$ 102,310

There is no recognition or reversal regarding major acquisition, disposition, and impairment of the group's investment property in the period from January 1 to June 30, 2021 and 2020. For the amount of depreciation for the current period, please refer to Note 12(1). For other relevant information, please refer to Note 6(7) to the 2020 consolidated financial statements.

There is no significant difference between the fair value or the investment property of the group and the information disclosed in Note 6(7) to the 2020 annual consolidated financial statements.

As of June 30, 2021, December 31, 2020, and June 30, 2020, for information regarding the group's investment property pledged as collateral, please refer to Note 8.

(8) Short-term loans

The details of the short-term loans of the group are as follows:

Unsecured bank loans Unused limit Interest rate collars	2021.6.30 $	2021.6.30 $		2020.12.31 150,000 4,288,003 1.1%	2020.6.30
					150,000
		$ 4,961,035			3,647,457 1.6%

For details on interest rate risk and liquidity risk, please refer to Note 6(18)).

For details on the group's assets used as collateral for bank loans, please refer to Note 8.

(9) Provisions

Provisions
Balance of warranty provisions as of January 1 Additional provisions for the current period Provisions used in the current period Balance of warranty provisions as of June 30		Jan.- Jun., 2021 $ 150,363 15,721 (2,397) $ 163,687	Jan.- Jun., 2020
			102,482 345 (1,338) 101,489

For the periods from January 1 to June 30, 2021 and 2020, the warranty provisions of the group are mainly related to construction contracting. The warranty provisions are estimated based on the historical warranty data of various constructions. The group expects that the liability will occur mostly one year after the construction acceptance.

(10) Operating lease

For the periods from January 1 to June 30, 2021 and 2020, the group has no significant new contract of operating leases. For related information, please refer to Note 6(10) to the 2020 consolidated financial statements.

14

(11) Employee benefits

1. Defined benefit plan

There were no major market fluctuations, significant reduction, liquidation or other one-time-only significant events in the previous fiscal year. Therefore, the group measures and discloses the interim period pension costs based on the actuated amount on December 31, 2020 and 2019.

The details of the expenses recognized by the group are as follows:

Operating costs Administrative expenses Total	Apr. - Jun., 2021	Apr. - Jun., 2020	Jan. - Jun., 2021	Jan. - Jun., 2020
			260 840	406 103
	$ 151 168		1,100	509

2. Defined Contribution Plan

The pension expenses under the group's defined contribution plan are as follows, and have been appropriated to the Bureau of Labor Insurance.

Operating costs Administrative expenses Total	Apr. - Jun., 2021	Apr. - Jun., 2020	Jan. - Jun., 2021	Jan. - Jun., 2020 8,12 2,578
	$ 4,077 1,301	4,097 1,282	8,278 2,635
	$ 5,378	5,379	10,913	10,699

3. Short-term compensated absence liabilities

The details of employee benefit liabilities of the group are as follows:

			2021.6.30	**2020.12.31 **	2020.6.30
Short-term compensated absences liabilities		$	10,862	15,057	13,696
come tax
come tax expense is the best estimate of the amount that net				income before	tax for the period
ultiplies by the management's best		estimate	of the annual effective tax rate.
The details of the group's income tax expenses are as follows:
	Apr. -Jun., 2021		Apr. -Jun., 2020	Jan. -Jun., 2021	Jan. -Jun., 2020
Current income tax expenses
Accrued in current year	$	65,678	57,502	91,864	82,602
Surtax on unappropriated		658	3,302	692	3,554
retained earnings
Adjustments to income tax		(19)	(1,904)	(19)	(1,904)
expenses of previous period
		66,317	58,900	92,537	84,252
Deferred income tax expenses
Occurrence and reversal of
temporary differences		(2,774)	(50)	(2,026)	368
Income tax expenses	$	63,543	58,850	90,511	84,620

(12) Income tax

Income tax expense is the best estimate of the amount that net income before tax for the period multiplies by the management's best estimate of the annual effective tax rate.

1. The details of the group's income tax expenses are as follows:

2. The tax filling of Kedge Construction was assessed by the tax collecting agencies for 2018.

15

The tax fillings of other entities of the group were assessed for 2019.

(13) Capital and other equity

Apart from the matters described in the following paragraphs, there were no major changes in the group's capital and other equity in the periods from January 1 to June 30, 2021 and 2020. For relevant information, please refer to Note 6(13) to the 2020 consolidated financial statements.

1. Capital reserve

The details of capital reserve were as follows:

Shares premium Premium on conversion of convertible bonds Changes in equity of associates and joint ventures accounted for using equity method Unclaimed dividends after effective period Others	2021.6.30 $ 383,109 130,766 2,568 521 1,437	2020.12.31 383,109 130,766 2,568 414 1,437	2020.6.30 383,109 130,766 2,568 425 1,437 518,305
	$ 518,401	518,294

In accordance with the Company Act, realized capital surplus can only be distributed to shareholders based on their original shareholding percentage as new shares or cash dividends after offsetting losses. The realized capital surplus referred to in the preceding paragraph includes the overage from the issuance of shares over the par value and the proceeds from the receipt of gifts. In accordance with the provisions of the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, the capital reserve may be capitalized, and the combined amount of any portions capitalized may not exceed 10% of the paid-in capital each year.

2. Retained earnings

The company's Articles of Incorporation stipulate that the company's earnings should first be used to offset the prior years' deficits, if any, before paying any income taxes. Of the remaining balance, 10% is to be appropriated as legal reserve, and a special reserve shall be set aside in accordance with applicable laws and regulations. The remaining balance, if any, can be distributed to the shareholders as dividends, and bonus dividends according to the distribution plan proposed by the Board of Directors and submitted to the shareholders' meeting for approval.

The company will develop towards contracting large-scale constructions and strive for growth and innovation. To continuously maintain sufficient capital to meet the needs of the business, and to take into account the cash required for shareholders, the company's future cash dividend ratio will be no less than 20% of the total cash and share dividends to be distributed in the current year.

(1) Legal reserve

When there is no loss in the company, the legal reserve will be used to issue new shares or cash dividends upon resolution by the Shareholders' Meeting, to the limit of the part of the reserve that has exceeded 25% of the paid-in capital.

16

(2) Earnings distribution

The 2020 and 2019 distribution of earnings were resolved at the shareholders' meeting on July 1, 2021 and June 15, 2020, respectively. The dividends distributed to owners are as follows:

Dividends to common shareholders: Cash	2020 Dividend rate (NTD) Amount $ 3.6 381,728	2019 Dividend rate (NTD) Amount 3.0 318,107
		Dividend rate (NTD) 3.0

3. Other equity (net after tax)

Balance as of January 1, 2021 Unrealized valuation gain (loss) from financial assets measured at fair value through other comprehensive income Balance as of June 30, 2021 Balance as of January 1, 2020 Unrealized valuation gain (loss) from financial assets measured at fair value through other comprehensive income Balance as of June 30, 2020	Unrealized gains and losses from financial assets at fair value through other comprehensive income	Unrealized gains and losses from financial assets at fair value through other comprehensive income
		$ 144,653 58,786
		$ 203,439
		$ 126,159 (9,410)
		$ 116,749

(14) Earnings per share

The amounts of basic earnings per share and diluted earnings per share are as follows:

Apr. - Jun., 2021 Apr. - Jun., 2020 Jan. - Jun., 2021 Jan. - Jun., 2020

	Apr. -Jun., 2021 Apr. -Jun., 2020 Jan. -Jun., 2021 Jan. -Jun., 2020
Basic earnings per share Net income attributable to the holders of common shares of the company Weighted average number of common shares outstanding Diluted earnings per share Net income attributable to the holders of common shares of the company Weighted average number of common shares outstanding Impact of potential common shares with the dilution effect Influence of employees' share bonus Weighted average number of common shares outstanding (after adjusting the impact of diluting potential common shares)	$ 282,477 222,388 399,439 308,815
	106,036 106,036 106,036 106,036
	$ 2.66 2.10 3.77 2.91
	$ 282,477 222,388 399,439 308,815
	106,036 106,036 106,036 106,036 423 95 723 165
	106,459 106,131 106,759 106,201
	$ 2.65 2.10 3.74 2.91

17

• (15) Revenue from contracts with customers

1. Disaggregation of revenue

Apr. - Jun., 2021 Apr. - Jun., 2020 Jan. - Jun., 2021 Jan. - Jun., 2020

Apr. -Jun., 2021 Apr. -Jun., 2020 Jan. -Jun., 2021 Jan. -Jun., 2020	Apr. -Jun., 2021 Apr. -Jun., 2020 Jan. -Jun., 2021 Jan. -Jun., 2020	Apr. -Jun., 2020 Jan. -Jun., 2021 Jan. -Jun., 2020	Apr. -Jun., 2020 Jan. -Jun., 2021 Jan. -Jun., 2020	Apr. -Jun., 2020 Jan. -Jun., 2021 Jan. -Jun., 2020
Timing of revenue recognition: Gradually transferred constructions over time $ 2,528,985 4,034,133 5,172,739 6,804,820 Gradually transferred services over time 2,528 1,516 4,039 3,033 $ 2,531,513 4,035,649 5,176,778 6,807,853 Contract balances 2021.6.30 2020.12.31 2020.6.30 Notes and accounts receivable (including related parties) $ 1,582,304 2,828,300 3,300,692 Less: Allowance for losses - - (11,383) Total $ 1,582,304 2,828,300 3,289,309 Contract asset construction- $ 1,903,974 1,441,162 2,106,256 Less: Allowance for losses - - - Total $ 1,903,974 1,441,162 2,106,256 Contract liability construction- $ 896,458 1,525,341 1,445,329		4,034,133 5,172,739 6,804,820 1,516 4,039 3,033
		4,035,649 5,176,778 6,807,853
			2020.12.31 2,828,300 -	2020.6.30
				3,300,692 (11,383) 3,289,309 2,106,256 - 2,106,256 1,445,329
	$ 1,582,304		2,828,300
	$ 1,903,974 -		1,441,162 -
	$ 1,903,974		1,441,162
	$ 896,458		1,525,341

2. Contract balances

For details of accounts receivable and their impairments, please refer to Note 6(4).

The changes in contract assets and contract liabilities are mainly due to the difference between the time when the group transfers commodities or services to clients to meet the performance obligations and the time when clients pay. There were no other material changes during the periods from January 1 to June 30, 2021 and 2020.

• (16) Remuneration to employees, directors and supervisors

The company’s Articles of Incorporation stipulate that, after annual earnings first offset against any deficit, a minimum of 0.5% shall be allocated as employee compensation and a maximum of 2% as directors' remuneration. However, profits must first be taken to offset cumulative losses if any.

The estimated remunerations to employees amounted to NT$14,069 thousand, NT$2,889 thousand, NT$20,175 thousand, and NT$4,041 thousand, and the estimated remunerations to directors and supervisors amounted to NT$7,034 thousand, NT$5,779 thousand, NT$10,087 thousand, and NT$8,083 thousand for the three-months periods and six-months periods then ended on June 30, 2021 and 2020, respectively. These amounts were calculated using the company's net income before tax without the remunerations to employees and directors and supervisors for each period, multiplied by the percentage which is stated under the company's Articles of Incorporation. These remunerations were expensed under operating costs and operating expenses for each period. If the actual distribution is different from the estimation, the difference will be accounted for as changes in accounting estimates and recognized in profit or loss for the following year.

The actual distribution of employee remuneration amounted to NT$33,223 thousand and NT$5,105 thousand, and the actual distribution of director and supervisor remuneration amounted to NT$16,611 thousand and NT$10,209 thousand for the years of 2020 and 2019. There is no difference between the estimation and the actual distribution. Please refer to the MOPS for relevant information.

18

(17) Non-operating income and expenses

1. Interest income

The details of interest income of the group are as follows:

Loans and receivables Bank deposits Other interest income	Apr. - Jun., 2021	Apr. - Jun., 2020	Jan. - Jun., 2021	Jan. - Jun., 2020
	$ 1,757 336 2,087	2,300 200 -	3,199 363 2,087	4,230 236 -
	$ 4,180	2,500	5,649	4,466

2. Other income

The details of other income of the group are as follows:

Apr. - Jun., 2021 Apr. - Jun., 2020 Jan. - Jun., 2021 Dividend income $ 2,935 412 2,935 Rental income 3 3 6 Other income 129 129 258 $ 3,067 544 3,199 Other gains or losses The details of other gains or losses of the group are as follows: Apr. - Jun., 2021 Apr. - Jun., 2020 Jan. - Jun., 2021 Gains (or losses) on financial assets measured at fair value through profit or loss $ 15,414 5,331 24,657 Gains on disposal of property, plant and equipment - - 33 Other expenses - - - $ 15,414 5,331 24,690	Apr. - Jun., 2021	Apr. - Jun., 2021	Apr. - Jun., 2020	Apr. - Jun., 2020	Jan. - Jun., 2021	Jan. - Jun., 2021		Jan. - Jun., 2020 412 6 856 1,274 Jan. - Jun., 2020 (8,759) - (80) (8,839)
	$ 2,935 3 129		412 3 129		2,935 6 258
	$ 3,067		544		3,199
		$ 15,414 - -		5,331 - -		24,657 33 -
		$ 15,414		5,331		24,690

3. Other gains or losses

4. Finance costs

The details of finance costs of the group are as follows:

Interest expenses Bank loans Others	Apr. - Jun., 2021 $ - 56 $ 56	Apr. - Jun., 2020 586 95 681	Jan. - Jun., 2021	Jan. - Jun., 2020
			104 124	1,17 14
			228	1,31

19

(18) Financial instruments

Apart from the matters described in the following paragraphs, there are no major changes in the fair value of the group's financial instruments and matters exposed to credit risk, liquidity risk, and market risk due to financial instruments. For relevant information, please refer to Note 6(18) to the 2020 consolidated financial statements.

1. Liquidity risk

The following table presents the due date of financial liability contracts, including estimated interest to the exclusion of the influence of net amount agreements.

June 30, 2021 Non-derivative financial liabilities Notes payable Accounts payable Other payables Other current liabilities (leases liabilities) Other non-current liabilities (leases liabilities) December 31, 2020 Non-derivative financial liabilities Unsecured bank loans Notes payable Accounts payable Other payables Other current liabilities (leases liabilities) Other non-current liabilities (leases liabilities) June 30, 2020 Non-derivative financial liabilities Unsecured bank loans Notes payable Accounts payable Other payables Other current liabilities (leases liabilities) Other non-current liabilities (leases liabilities)	Book value	Contractual cash flows	Less than 1 year 289,786 1,910,778 206,111 2,652 -	1~3years-	3~5years-	Over 5years - - - - 4,346
	$ 289,786 3,646,549 206,111 2,615 8,030	289,786 3,646,549 206,111 2,652 9,275		- 1,735,771 - - 3,891	- - - - 1,038
	$ 4,153,091	4,154,373	2,409,327	1,739,662	1,038	4,346
	$ 150,000 335,247 3,749,899 315,681 2,159 9,722	151,100 335,247 3,749,899 315,681 2,652 10,601	151,100 335,247 1,855,504 315,681 2,652 -	- - 1,894,395 - - 4,474	- - - - - 1,682	- - - - - 4,445
	$ 4,562,708	4,565,180	2,660,184	1,898,869	1,682	4,445
	$ 150,000 432,796 3,850,101 511,395 1,323 8,595	150,200 432,796 3,850,101 511,395 1,486 9,842	150,200 432,796 2,221,857 511,395 1,486 -	- - 1,628,244 - - 2,972	- - - - - 2,327	- - - - - 4,543
	$ 4,954,210	4,955,820	3,317,734	1,631,216	2,327	4,543

The group does not expect that the occurrence timing of cash flow analyzed on the due date would arrive significantly earlier, or the actual amount would significantly vary.

2. Other price risk

If the equity securities price changes on the reporting date (the same basis is adopted for the analysis for both periods, with the assumption that other variable factors remain unchanged), the impacts on the comprehensive gains or losses are as follows:

Securities price on the reporting date Increased by 10% Decreased by 10%	Jan. -Jun., 2021	Jan. -Jun., 2021	Jan. -Jun., 2021	Jan. -Jun., 2020 Other comprehensive income after tax Net income after tax 32,992 4,138 (32,992) (4,138)	Jan. -Jun., 2020 Other comprehensive income after tax Net income after tax 32,992 4,138 (32,992) (4,138)	Jan. -Jun., 2020 Other comprehensive income after tax Net income after tax 32,992 4,138 (32,992) (4,138)
	Other comprehensive income after tax		Net income after tax			Net income after tax
	$ 41,546 $ (41,546)		6,870			4,138
			(6,870)			(4,138)

20

3. Fair value information

• (1) Type and fair value of financial instruments

Financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income are measured on a recurring basis. The carrying amount and fair value of various types of financial assets and financial liabilities (including fair value level information, then again the carrying amount of financial instruments not measured by fair value is a reasonable approximation, and the fair value of equity instrument investment lease liabilities without quotation in the active market that cannot be reliably measured, the fair value is not required to be disclosed according to regulations) are listed as follows:

Financial assets at fair value through profit or loss Financial assets mandatorily classified as at fair value through profit or loss Financial assets measured at fair value through other comprehensive income Financial assets at amortized cost Cash and cash equivalents Notes and accounts receivable (including related parties) Other financial assets - current- Other financial assets - non-current- Subtotals Total Financial liabilities at amortized cost Notes and accounts payable Other current liabilities (leases liabilities) Other non-current liabilities (leases liabilities) Other payables Total			2021.6.30	2021.6.30	2021.6.30	Total 68,696 422,171 - - - - - 490,867 - - - - -
	Book value			Fair value
			Level 1 68,696	Level 2 -	Level 3 -
	$ 68,696 $ 422,171 $ 4,202,298 1,582,304 215,314 15,464 6,015,380 $ 6,506,247 $ 3,936,335 2,615 8,030 206,111 $ 4,153,091
			415,455	-	6,716
			- - - -	- - - -	- - - -
			-	-	-
			484,151	-	6,716
			- - - -	- - - -	- - - -
			-	-	-

21

2020.12.31

Financial assets at fair value through profit or loss Financial assets mandatorily classified as at fair value through profit or loss Financial assets measured at fair value through other comprehensive income Financial assets at amortized cost Cash and cash equivalents Notes and accounts receivable (including related parties) Other financial assets - currentOther financial assets - non-currentSubtotals Total Financial liabilities at amortized cost Short-term loans Notes and accounts payable Other current liabilities (leases liabilities) Other non-current liabilities (leases liabilities) Other payables Total

Book value			Fairvalue	Fairvalue
		Level 1 44,039	Level 2 -	Level 3 -	**Total **
$ 44,039 $ 363,370 $ 4,108,192 2,828,300 201,785 11,171 7,149,448 $ 7,556,857 $ 150,000 4,085,146 2,159 9,722 315,681 $ 4,562,708					44,039
		357,545	-	5,825	363,370
		- - - -	- - - -	- - - -	- - - -
		-	-	-	-
		401,584	-	5,825	407,409
		- - - - -	- - - - -	- - - - -	- - - - -
		-	-	-	-

Financial assets at fair value through profit or loss Financial assets mandatorily classified as at fair value through profit or loss Financial assets measured at fair value through other comprehensive income Financial assets at amortized cost Cash and cash equivalents Notes and accounts receivable (including related parties) Other financial assets - current- Other financial assets - non-current- Subtotals Total Financial liabilities at amortized cost Short-term loans Notes and accounts payable Other current liabilities (leases liabilities) Other non-current liabilities (leases liabilities) Other payables Total			2020.6.30	2020.6.30	2020.6.30
	Book value			Fair value
			Level 1 41,375	Level 2 -	Level 3 -	**Total **
	$ 41,375 $ 335,459 $ 2,877,363 323,289,309 289,496 7,295 326,463,463 $326,840,297					41,375
			329,920	-	5,539	335,459
			- - - -	- - - -	- - - -	- - - -
			-	-	-	-
			371,295	-	5,539	376,834
	$ 150,000 4,282,897 1,323 8,595 511,395 $ 4,954,210		- - - - -	- - - - -	- - - - -	- - - - -
			-	-	-	-

22

(2) Changes in Level 3 financial assets

Measured at fair value through other comprehensive income

January 1, 2021 June 30, 2021 January 1, 2020 June 30, 2020	Equity instruments without public quotes $ 5,825	Bond investment -	Total 5,825 6,716 5,920 5,539
	$ 6,716	-
	$ 5,920	-
	$ 5,539	-

The above total profit or loss is reported in "unrealized gain (loss) on the valuation of financial assets at fair value through other comprehensive income." Among them, the assets still held on June 30, 2021 and 2020 are as follows:

Total profit or loss Recognized in other comprehensive income (reported in"unrealized gain (loss) on valuation of financial assets at fair value through other comprehensive income")	Apr. -Jun., 2021	Apr. -Jun., 2020	Jan. -Jun., 2021	Jan. -Jun., 2020 (381)
	$ (137)	(171)	891

• (3) There was no matter of transfer between each level during the periods from January 1 to June 30, 2021 and 2020.

(19) Financial risk management

There is no significant difference between the goals and policies of the group's financial risk management and the information disclosed in Note 6(19) to the 2020 consolidated financial statements.

(20) Capital management

The goals, policies and procedures of the group's capital management are in line with the information disclosed in Note 6(20) to the 2020 consolidated financial statements. The aggregated quantitative data of the projects used as capital management in the current period is as follows:

Total liabilities Less: Cash and cash equivalents Net liabilities Total equity Adjusted capital Debt-to-capital ratio	2021.6.30 $ 5,330,692 (4,202,298)	2021.6.30 $ 5,330,692 (4,202,298)	2020.12.31 6,364,378 (4,108,192)	2020.6.30 6,660,092 (2,877,363)
	1,128,394 3,527,634		2,256,186 3,069,278	3,782,729 2,722,480
	$ 4,656,028		5,325,464	6,505,209
		24%	42%	58%

23

7. Related-Party Transactions

• (1) The parent company and the ultimate controlling party

Kindom Development Co., Ltd. is the parent company of the group and the ultimate controller of the group to which it belongs and holds 34.18% of the outstanding common shares of the group. Kingdom Development Co., Ltd. has prepared consolidated financial statements for public use.

• (2) Name of related parties and relations

The affiliates which have trading with the group within the period of the consolidated financial statements are as follows:

Name of related party Kindom Development Co., Ltd. Kindom Yu San Education Foundation	Relationship with the group
	The parent company of the company The entity's chairman is the first-degree relative of the company's director.

• (3) Significant transactions with related parties

• Sales of services to related parties

The substantial sales amount of the group to related parties is as follows:

Parent company - Kindom Development Co., Ltd. Parent company - Kindom Development Co., Ltd. Parent company - Kindom Development Co., Ltd. Parent company - Kindom Development Co., Ltd.	Nature		Apr. -	Jun., 2021	Income recognized in the current period 960,972
		Total contract amount		Current valuation amount 632,043
	Engineering construction Nature
			Apr. -	Jun., 2020	Income recognized in the current period 1,427,414
		Total contract amount		Current valuation amount 1,255,600
	Engineering construction Nature
			Jan. -	Jun., 2021	Income recognized in the current period 1,592,541
		Total contract amount		Current valuation amount 1,256,086
	Engineering construction Nature
			Jan. -	Jun., 2020	Income recognized in the current period 2,374,263
		Total contract amount		Current valuation amount 2,517,426
	Engineering construction

24

• 1) The constructions contracted by the group from related parties are compliant with the outsourcing regulations of the affiliates, plus a reasonable management fee and profit in accordance with the project budget, and after the price comparison and negotiation procedures, the contract prices are determined after they are submitted to the supervisors for approval.

• 2) From January 1 to June 30, 2021 and 2020, the gross profit margin of the constructions contracted by the group from non-affiliates was approximately 1.92%~23.66% and 3.96%~19.90%; that of the affiliates was about 3.74%~4.64% and 3.85%~4.89%, respectively.

• Receivables from related parties and contract assets

The group's receivables from related parties and contract assets are as follows:

**Account title inbook **	Type of related party	2021.6.30 $ - 986,517 243,626 26,861	2020.12.31 1,119,596 769,260 131,468 19,774	2020.6.30 1,321,094 612,744 393,100 20,153
Notes receivable Accounts Receivable Contract assets Contract assets (retention receivables)	Parent company - Kindom Development Co., Ltd. Parent company - Kindom Development Co., Ltd. Parent company - Kindom Development Co., Ltd. Parent company - Kindom Development Co., Ltd.
		$ 1,257,004	2,040,098	2,347,091

For 2021 and 2020, the collection period of the group from related parties was 50% due immediately, 50% due in 60 days, and 100% due in 90 days; one assessment was performed on general cases in a month, 100% due immediately, or 100% due in 30 days, or 100% due in 90 days.

3. Endorsements/guarantees

On June 30, 2021, December 31, 2020, and June 30, 2020, the group was the joint partner and joint debtor of the parent company - Kindom Development Co., Ltd. for cooperative development and construction, with the amount of NT$28,384 thousand.

4. Leases

For the six-month periods ended June 30, 2021 and 2020, the group leased to the parent company - Kindom Development Co., Ltd. office building and signed a tenancy agreement, taking into account the rental market prices of offices in neighboring areas. The total contract value was NT$294 thousand per month. The rent income was NT$840 thousand, NT$840 thousand, NT$1,680 thousand, and NT$1,680 thousand for the periods from April 1 to June 30, 2021 and 2020, and January 1 to June 30, 2021 and 2020.

The group leased the office building from its parent company, Kindom Development Co., Ltd., with a total contract value of NT$575 thousand and NT$195 thousand per month from January 1 to June 30, 2021 and 2020, respectively. The rental expenses were NT$1,643 thousand, NT$557 thousand, NT$3,286 thousand, and NT$1,114 thousand for the periods from April 1 to June 30, 2021 and 2020, and January 1 to June 30, 2021 and 2020.

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5. Others

• 1) The group donated a total of NT$3,000 thousand and NT$2,750 thousand to Kindom Yu San Education Foundation in the periods from January 1 to June 30, 2021 and 2020, respectively, for the promotion of foundation affairs.

• 2) In 2021 and 2020, the group entered into a professional service contract with Kindom Development Co., Ltd., the parent company, for the provision of engineering research, recommendation, and education by the group at a total contract price of NTD 1,060 thousand and NTD 963 thousand, which was fully settled as of June 30, 2021.

• (4) Key management personnel transactions

Remuneration to key management personnel includes:

Short-term employee benefits Benefits after retirement	Apr. - Jun., 2021	Apr. - Jun., 2020	Jan. - Jun., 2021	Jan. - Jun., 2020
	$ 26,356 65	18,672 47	60,083 112	49,359 93
	$ 26,421	18,719	60,195	49,452

8. Pledged Assets

The details of the carrying value of pledged assets by the group are as follows:

Name of assets	Pledge guarantee object	2021.6.30 $ 160,091 53,200 95,237	2020.12.31 168,484 53,200 95,353	2020.6.30 264,260 53,200 95,469
Other financial assets - current Property, plant and equipment, net Investment property, net	Loan facilities collateral and construction guarantees Loan facilities collateral Loan facilities collateral
		$ 308,528	317,037	412,929

9. Significant Contingent Liabilities and Unrecognized Contract Commitments

• (1) Significant unrecognized contract commitments:

• The major construction undertaking by the group as of June 30, 2021, December 31, 2020, and June 30, 2020 amounted to NT$41,913,517 thousand, NT$44,164,036 thousand, and NT$47,361,600 thousand, respectively; the group already collected NT$17,279,135 thousand, NT$19,796,069 thousand, and NT$19,088,493 thousand based on the contracts.

• Approved by the Board of Directors on December 30, 2020 and December 20, 2019, the group undertook to donate NT$6,000 thousand and NT$5,500 thousand to the Kindom Yu San Education Foundation in 2021 and 2020, respectively, for the promotion of the foundation's business.

(2) Contingent liabilities:

1. In relation to the construction project under Project Code 041A, the neighbor manufacturer alleged that the structural damages on the manufacturer's plants and land were a result of the company's construction. Both parties were not able to settle the issue in mediation, so the company was sued by the neighbor manufacturer, in the amount of NT$15,665 thousand. The company has yet to assess any contingent liability for this litigation.

2. On November 24, 2017, the Company entered into the “Contracted Construction of New Medical Building at Taipei Veterans General Hospital” with Taipei Veterans General Hospital, which affected the construction period by 142 days due to the amendments to the “Regulations Governing the Construction Time of Construction Works in Taipei City” and caused a delay in the construction period due to difficulties in rock excavation, limitation on

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exit from Taipei Port and shortage of construction market, resulting in the construction progress of this case has not reached the completion conditions as of June 30, 2021. As the aforesaid factors are not attributable to the Company, the Company is actively seeking with the proprietor to extend the construction period for a further period of 198 days. The extension of the construction period applied by the Company’s legal counsel is reasonable and not without merit, but the final extension result shall still be handled through procedures such as settlement of performance dispute.

10. Significant Disaster Loss: None.

11. Significant Events after the End of the Financial Reporting Period: None.

12. Others

(1) The employee benefits, depreciation, depletion, and amortization expenses are summarized by function as follows:

Function Nature	Apr. -Jun., 2021	Apr. -Jun., 2021	Apr. -Jun., 2021	Apr. -Jun., 2020	Apr. -Jun., 2020	Apr. -Jun., 2020
	Operating costs	Operating expenses	Total	Operating costs	Operating expenses	Total
Employee benefits expenses Salaries and wages Labor insurance and national health insurance Pension expenses Other employee benefits expenses Depreciation Depletion expenses Amortization expenses	$ 114,016 9,184 4,184 16 1,285 - -	47,410 2,425 1,345 1,864 3,716 - -	161,426 11,609 5,529 1,880 5,001 - -	107,496 9,122 4,229 168 554 - -	42,253 2,316 1,318 3,205 1,360 - -	149,749 11,438 5,547 3,373 1,914 - -

Function Nature	Jan. -Jun., 2021	Jan. -Jun., 2021	Jan. -Jun., 2021	Jan. -Jun., 2020	Jan. -Jun., 2020	Jan. -Jun., 2020
	Operating costs	Operating expenses	Total	Operating costs	Operating expenses	Total
Employee benefits expenses Salaries and wages Labor insurance and national health insurance Pension expenses Other employee benefits expenses Depreciation Depletion expenses Amortization expenses	$ 239,544 18,628 8,538 586 3,008 - -	92,166 4,942 3,475 2,438 6,834 - -	331,710 23,570 12,013 3,024 9,842 - -	230,693 17,996 8,527 686 671 - -	84,023 4,614 2,681 4,221 1,981 - -	314,716 22,610 11,208 4,907 2,652 - -

• (2) Seasonality of operation: The operation of the group is not affected by seasonal or periodic factors.

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13. Supplementary Disclosures

(1) Information on significant transactions

In the period from January 1 to June 30, 2021, the group shall disclose information related to significant transactions pursuant to the "Regulations Governing the Preparation of Financial Reports by Securities Issuers." Such information is as follows:

1. Financings provided: None.

2. Endorsement/guarantees for others:

Unit: Thousand NTD

No.	Name of endorsement/g uarantee provider	Subject of endorsement/guarantees	Subject of endorsement/guarantees	Limit on endorsement/gua rantees provided for a single party (Note 2)	Maximum balance for this period	Closing balance of endorsement/ guarantees	Actual amount used	Amount of endorsement/ guarantees collateralized with assets	Ratio of accumulated endorsement/ guarantees to net equity per latest financial statements	Maximum endorsement/ guarantee amount (Note 2)	Endorsement /guarantees provided by parent company to subsidiaries	Endorsement /guarantees provided by subsidiaries to parent company	Endorsemen t /guarantees provided to entities in China
		Company name	Relationship (Note 1)
0	Kedge Construction Co., Ltd.	Kindom Developm ent Co., Ltd.	Parent company and subsidiary	$ 7,054,882	14,192	14,192	14,192	-	0.40%	7,054,882	-	Y	-
1	Dingtian Construction Co., Ltd.	Kindom Developm ent Co., Ltd.	Parent company and subsidiary	52,737	14,192	14,192	14,192	-	26.91%	52,737	-	Y	-
1	"	Kedge Constructi on Co., Ltd.	"	7,910,581	1,376,500	1,376,500	1,376,500	-	2,610.12%	15,821,162	-	Y	-

• Note 1. Listed below are the 7 types of companies to which the company may provide endorsement/guarantees:

• (1) A company with which the company has a business relationship.

• (2) A company in which the company directly or indirectly holds more than 50% of the voting shares.

• (3) A company that directly or indirectly holds more than 50% of the voting shares in the company.

• (4) Between the companies in which the company directly or indirectly holds more than 90% of the voting shares.

• (5) A company fulfills its contractual obligations by providing mutual endorsement/guarantee for another company in the same industry or for joint builders for purposes of undertaking a construction project.

• (6) All capital contributing shareholders make endorsement/guarantees for their jointly invested company in proportion to their shareholding percentages.

• (7) Companies in the same industry provide among themselves joint and several securities for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

• Note 2: 1. The aggregate balance of endorsement/guarantees provided by the company shall not exceed 200% of the company's net worth stated in the most recent financial statements, and the amount of endorsement/guarantees provided by the company for any single entity shall not exceed 200% of the company's net worth stated in the most recent financial statements. Nevertheless, the total guarantee amount for construction projects shall not exceed 10 times the company's net worth stated in the most recent financial statements, and the total guarantee amount for construction projects of a single enterprise shall not exceed 5 times the company's net worth stated in the most recent financial statements.

• The aggregate balance of endorsement/guarantees provided by Dingtian Construction shall not exceed 100% of Dingtian Construction's net worth stated in the most recent financial statements, and the amount of endorsement/guarantees provided by Dingtian Construction for any single entity shall not exceed 100% of Dingtian Construction's net worth stated in the most recent financial statements. Nevertheless, the total guarantee amount for construction projects shall not exceed 300 times of Dingtian Construction's net worth stated in the most recent financial statements, and the total guarantee amount for construction projects of a single enterprise shall not exceed 150 times of Dingtian Construction's net worth stated in the most recent financial statements.

Note 3. The above transactions have been written off at the time of preparation of the consolidated financial statements.

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1. Marketable securities held at the end of the period (excluding investment in subsidiaries, associates and joint ventures):

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Unit: Thousand NTD
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Holding company	Type and name of securities	Relationship with the securities issuer	Account title in book	End of period	End of period	End of period	End of period	Remark
				Number of shares (thousand shares)	Book value	Percentage of shareholding	Fair value
Kedge Construction Co., Ltd.	Shares - Kindom Development Co., Ltd.	Kedge Construction Co., Ltd. is its subsidiary	Financial assets measured at fair value through other comprehensive income - non-current	500	$ 19,550	0.10 %	19,550
Jiequn Investment Co., Ltd.	Shares - Fubon Financial Holding Co., Ltd.	-	Financial assets at fair value through profit or loss - current	472	34,844	- %	34,844
"	Shares - SinoPac Financial Holdings Co., Ltd.	-	"	211	2,903	- %	2,903
"	Shares - Kindom Development Co., Ltd.	Jiequn Investment is the second-tier subsidiary of that company.	Financial assets measured at fair value through other comprehensive income - non-current	8,518	333,071	1.69 %	333,071
"	Shares - Taiwan Calcom International Computer Graphic Co., Ltd.	-	"	405	-	0.78 %	-
Guanqing Electromecha nical Co., Ltd.	Shares - Kindom Development Co., Ltd.	Guanqing Electromechanic al is the second-tier subsidiary of that company.	"	1,607	62,834	0.32 %	62,834
"	Shares - Commonwealth Publishing Co., Ltd.	-	"	132	6,716	0.54 %	6,716
"	Shares - Fubon Financial Holding Co., Ltd.	-	Financial assets at fair value through profit or loss - current	419	30,949	- %	30,949

1. Accumulated amount of buying or selling the same marketable securities at NT$300 million or more than 20% of the paid-in capital: None.

2. Acquisition of individual real estate properties at costs of at least NT$300 million or 20% of the paid-in capital: None.

3. Disposal of individual real estate properties at prices of at least NT$300 million or 20% of the paid-in capital: None.

4. Purchase and sales with related parties amounting to NT$100 million or more than 20% of the paid-in capital:

Unit: Thousand NTD

Company name	Name of transaction counterparty	Relationship	Transaction details	Transaction details	Transaction details	Transaction details	Situation and reason of why trading conditions are different from general trading	Situation and reason of why trading conditions are different from general trading	Notes/accounts receivable (or payable)	Notes/accounts receivable (or payable)	Remark
			Purchases/sales	Amount (Note)	As a percentage of total purchase (sales)	Loan period	Unit Price	Loan period	Balance	As a percentage of total notes/account s receivable (or payable)
Kedge Construction Co., Ltd.	Kindom Development Co., Ltd.	An investment company that evaluates Kedge Construction Co., Ltd. by the equity method	Contracting	$ (1,256,086)	(29.24)%	Payment by installment following the contract is equivalent to the general transaction.	Equivalent	Slightly longer than normal	1,013,378	35.34%

Note: It refers to the current valuation amount.

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1. Receivables from related parties with amounts exceeding NT$100 million or 20% of the paid-in capital:

Unit: Thousand NTD

Company that records such transactions as receivables	Name of transaction counterparty	Relationship	Balance of receivables from related parties	Turnover rate	Overdue receivables from related parties	Overdue receivables from related parties	Amounts received in subsequent periods	Allowance for loss appropriated
					Amount	Action taken
Kedge Construction Co., Ltd.	Kindom Development Co., Ltd.	An investment company that evaluates Kedge Construction Co., Ltd. by the equity method	$ 1,013,378	2.18	-	-	129,368	-

1. Derivative financial instrument transactions: None.

2. Business relationship and significant transactions between the parent company and subsidiaries:

No.	Company name	Name of transaction counterparty	Relationship	Transactions	Transactions	Transactions	Transactions
				Account	Amount	Terms and conditions	As a percentage of consolidated revenue or total assets
0	Kedge Construction Co., Ltd.	Guanqing Electromechanical Co., Ltd.	1	Contract liabilities	$ 11,573	Equivalent to general transactions	0.13%
0	"	"	1	Notes and accounts payable	30,825	"	0.35%
0	"	"	1	Operating costs	82,790	"	1.60%
0	"	Dingtian Construction Co., Ltd.	1	Contract liabilities	19,582	"	0.22%
0	"	"	1	Notes and accounts payable	18,526	"	0.21%
0	"	"	1	Operating costs	77,224	"	1.50%
1	Guanqing Electromechanical Co., Ltd.	Kedge Construction Co., Ltd.	2	Contract assets	11,573	"	0.13%
1	"	"	2	Notes and accounts receivable	30,825	"	0.35%
1	"	"	2	Operating revenue	82,790	"	1.60%
2	Dingtian Construction Co., Ltd.	"	2	Contract assets	19,582	"	0.22%
2	"	"	2	Notes and accounts receivable	18,526	"	0.21%
2	"	"	2	Operating revenue	77,224	"	1.50%

Note 1: Instructions on numbering:

  1. The parent company is numbered 0.

  2. Subsidiaries are numbered from number 1.

• Note 2: The type of relationship with the transaction counterparty is marked as follows:

  1. Parent company to subsidiary.

  2. Subsidiary to parent company.

• Note 3: The above-mentioned transactions have been written off at the preparation of the consolidated financial statements.

• (2) Information on investees

The information on the group's investees in the period from January 1 to June 30, 2021 is as follows:

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				Unit: Thousand NTD/thousand shares	Unit: Thousand NTD/thousand shares	Unit: Thousand NTD/thousand shares	Unit: Thousand NTD/thousand shares	Unit: Thousand NTD/thousand shares	Unit: Thousand NTD/thousand shares	Unit: Thousand NTD/thousand shares	Unit: Thousand NTD/thousand shares
Name of investor	Investee	Location	Principal business	Original investment amount		Ending shareholding			Net income (loss) of the investee	Share of profit/loss of investee	Remark
				End of this period	End of last **year **	Number of Shares	Percentage	Book value
Kedge Construction Co.,Ltd.	Jiequn Investment Co., Ltd.	Taiwan	General Investment	$ 163,935	163,935	16,396	99.98%	455,167	13,508	13,505	Subsidiary
Kedge Construction Co., Ltd.	Guanqing Electromechanical Co., Ltd.	Taiwan	Electrical equipment installation and fire safety equipment installation,etc.	81,326	81,326	7,747	99.96%	236,076	16,437	16,430	"
Jiequn Investment Co., Ltd.	Dingtian Construction Co., Ltd.	Taiwan	The comprehensive construction industry,etc.	16,500	16,500	-	30.00%	15,821	(1,450)	(435)	Second-tier subsidiary
Guanqing Electromech anical Co., Ltd.	Dingtian Construction Co., Ltd.	Taiwan	The comprehensive construction industry,etc.	11,105	11,105	-	70.00%	36,916	(1,450)	(1,015)	"
Dingtian Construction Co., Ltd.	ReadyCom eServices Corp.	Taiwan	Information software services and management consultants,etc.	15,000	15,000	1,400	46.67%	18,719	(3,832)	(1,788)	Investments accounted for using equity method

Note: The transactions of the above subsidiaries and second-tier subsidiaries have been written off at the time of preparing the consolidated financial statements.

• (3) Information on investments in Mainland China

• Relevant information, including names and principal business, on investees in China: None.

• Limit of investment in China: None.

• Significant transactions with investees in China: None.

• (4) Information on major shareholders

Unit: Share

None. 2. Limit of investment in China: None. 3. Significant transactions with investees in China: None. Information on major shareholders		Unit: Share
Shareholding Name of major shareholder	Number of shares held	Percentage of shareholding
Kindom Development Co., Ltd.	36,247,768	34.18%
Yute Investment Co., Ltd.	8,785,536	8.28%

14. Segment Information

The operation department of the group which should be reported is the construction segment. The construction segment is mainly responsible for the integrated operation and maintenance of construction, management, and other overall works. The information on segment profit and loss, segment assets, and segment liabilities are consistent with the financial statements. Please refer to the consolidated balance sheets and consolidated statements of comprehensive income for details.

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