LONG BON — Annual Report 2021

Nov 15, 2021

Stock Code:2514

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES

Consolidated Financial Statements

with Independent Auditors� Report For the Years Ended December 31, 2021 and 2020

Address: 9F., No. 50, Sec. 1, Zhongxiao W. Rd., Zhongzheng Dist., Taipei City Telephone: (02)2375-6595

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.

Representation Letter

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

Company name: Long Bon International Co., Ltd. Chairman: Liu, Wei Lung Date: March 28, 2022

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110615 5 7 68 ( 101 ) Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) Web home.kpmg/tw

Independent Auditors� Report

To the Board of Directors of Long Bon International Co., Ltd.:

Opinion

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

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

Basis for Opinion

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

Key Audit Matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current period. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

1. Acquisition of Associates

Plese refer to Note 4(j) �Investment in Associates� and Note 6(f) �Investments Accounted for Using Equity Method� for more information on accounting policy.

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

Description of key audit matter

The Group held 32.1% voting shares of Taisun Enterprise Co., Ltd. (hereinafter referred to as �Taisun�) at the end of the period, and obtained a seats in Taisun�s Board of Directors in December 2021, resulting in the subject to have a significant impact on the consolidated financial statements.

How the matter was addressed in our audit

Our main audit procedures for the above key audit matter include obtaining the Company's investment assessment to ensure that it is in compliance with the board's decision-making process; sampling the certification documents of equity investment before reclassifying them to equity method investment, and reviewing the correctness of the accounting records; assessing whether the management�s evaluation at the end of the period is in accordance with IAS 28; sending a confirmation to the associates, reviewing and checking the stock share count at the end of the year to ensure that it has been properly disclosed in the consolidated financial statements.

2. Revenue Recognition of Construction Contract

Plese refer to Note 4(r) �Revenue from contracts with customers� for the accounting policies for revenue recognition, note 5 �Significant accounting assumptions and judgments, and major sources of estimation uncertainty� and 6(r) �Revenue from contracts with customers� for the detail on revenue recognition during the year.

Description of key audit matter

The major business activities of the Group include construction contracts entered into with clients, which contributed a significant proportion to operating revenue. The revenue from construction contracts is recognized by using the percentage of completion method during the contract period, and the revenue recognition involves significant accounting estimates such as estimated total cost of work, completion level, and variable consideration.

When determining transaction price, consideration, which may change due to discounts, rebates, penalties, or other similar items, shall be taken into account. Besides, the extent of completion is calculated based on the percentage of the cost arising from each contract of the estimated total cost of that construction contract as of the reporting date. Moreover, both the aforesaid changes in consideration and the estimated total cost involving accounting estimate give rise to uncertainty and impact on the recognition of revenue from construction contracts. Therefore, the recognition of the profit or loss on construction contracts was identified as one of our key audit matters.

How the matter was addressed in our audit

Our audit procedures in this area included, among others: Testing the internal control of the timing and accuracy of the recognition of revenue and costs to ensure its effectiveness; sampling significant contracts and interviewing management so as to understand the specific terms and risks of each construction contract; testing the evaluation document and procedure taken by the management to evaluate the total estimated costs, completion of construction, profitability of contracts, and variable consideration; checking the procedure of construction estimation, as well as juxtaposing and reconciling the estimates with the general ledger, and assessing whether the recognition of revenue and cost of construction contracts was consistent with the pertinent accounting standards.

Other Matter

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

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

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

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

Those charged with governance (including the Audit Committee) are responsible for overseeing the Group�s financial reporting process.

Auditors� Responsibilities for the Audit of the Consolidated Financial Statements

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

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

1. Assess for purposes of identifying the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

2. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group�s internal control.

3. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

4. Conclude on the appropriateness of management�s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group�s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors� report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors� report. However, future events or conditions may cause the Group to cease to continue as a going concern.

5. Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

6. Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.

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

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

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

The engagement partners on the audit resulting in this independent auditors� report are Shu-Ying Chang and Mei-Pin Wu.

KPMG

Taipei, Taiwan (Republic of China) March 28, 2022

Notes to Readers

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

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

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese) LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Assets Current assets: 1100 Cash and cash equivalents (note 6(a)) 1110 Current financial assets at fair value through profit or loss (note 6(b) and 8) 1140 Current contract assets (note 6(r) and 9) 1150 Notes receivable, net (note 6(d) and (r)) 1170 Accounts receivable, net (note 6(d), (r), 7 and 9) 1200 Other receivables, net (note 6(u) and 9) 1220 Current tax assets 1320 Inventories (for construction business), net (note 6(e), 7, 8 and 9) 1461 Non-current assets held for sale (note 6(i)) 1476 Other current financial assets (note 8 and 9) 1479 Other current assets, others (note 7) 1480 Current assets recognised as incremental costs to obtain contract with customers Non-current assets: 1517 Non-current financial assets at fair value through other comprehensive income (note 6(c)) 1535 Non-current financial assets at amortized cost, net (note 13) 1550 Investments accounted for using equity method, net (note 6(e), (f) and 8) 1600 Property, plant and equipment (note 6(h), 8 and 9) 1755 Right-of-use assets (note 7) 1760 Investment property, net (note 6(i), 7, 8 and 9) 1780 Intangible assets 1840 Deferred tax assets (note 6(o)) 1975 Net defined benefit asset, non-current 1980 Other non-current financial assets (note 7 and 8) 1990 Other non-current assets, others (note 6(i), 7 and 9) Total assets	December 31, 2021 Amount % $ 1,293,520 5 228,896 1 3,264,391 13 326,143 1 935,243 4 42,649 - 3,142 - 3,856,076 16 80,422 - 1,469,179 6 235,617 1 32,662 - 11,767,940 47 309,369 1 350,626 1 4,363,001 19 5,565,546 24 71,585 - 1,819,103 8 86,728 - 93,695 - 10,863 - 7,347 - 39,154 - 12,717,017 53 $ 24,484,957 100	December 31, 2020 (Adjusted)
		Amount % 1,911,545 8 5,195,794 21 2,835,103 12 313,159 1 425,050 2 55,513 - 341 - 3,896,762 16 - - 1,156,308 5 227,286 2 32,662 - 16,049,523 67 479,694 2 80,624 - 3,829 - 5,466,743 23 13,588 - 1,049,766 4 86,289 - 107,011 - 10,863 - 579,974 3 302,516 1 8,180,897 33 24,230,420 100

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese) LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES

Consolidated Balance Sheets

December 31, 2021 and 2020

(Expressed in Thousands of New Taiwan Dollars)

Liabilities and Equity Current liabilities: 2100 Short-term borrowings (note 6(j)) 2110 Short-term notes and bills payable (note 6(k)) 2130 Current contract liabilities (note 6(r)) 2151 Notes payable (note 7) 2171 Accounts payable (note 7) 2200 Other payables (note 6(s) and 7) 2230 Current tax liabilities (note 6(o)) 2250 Current provisions (note 6(e)) 2280 Current lease liabilities (note 7) 2399 Other current liabilities, others 2322 Long-term borrowings, current portion (note 6(l)) Non-Current liabilities: 2527 Non-current contract liabilities (note 6(r)) 2530 Bonds payable (note 6(m)) 2540 Long-term borrowings (note 6(l)) 2550 Non-current provisions (note 6(e)) 2570 Deferred tax liabilities (note 6(o)) 2580 Non-current lease liabilities (note 7) 2645 Guarantee deposits received Total liabilities Equity attributable to owners of parent (note 6(c), (g) and (p)) 3100 Capital stock 3200 Capital surplus 3300 Retained earnings 3400 Other equity interest 3500 Treasury shares Total equity attributable to owners of parent: 36XX Non-controlling interests Total equity Total liabilities and equity	December 31, 2021	December 31, 2021		December 31, 2020 (Adjusted) Amount % 3,878,182 16 580,974 2 633,544 3 1,191,581 5 2,373,685 11 393,754 3 101,423 - 36,005 - 8,737 - 50,711 - 50,109 - 9,298,705 40 32,101 - 2,469,730 10 281,310 1 118,554 - 496,955 2 5,014 - 1,994,081 8 5,397,745 21 14,696,450 61 3,947,293 16 146,633 1 5,875,475 24 (26,076) - (614,333) (3) 9,328,992 38 204,978 1 9,533,970 39 24,230,420 100
	Amount	%

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the Years Ended December 31, 2021 and 2020

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

4000 Operating revenue (note 6(n), (r), 7 and 9) 5000 Operating costs (note 6(e) and 7) Gross profit from operations Operating expenses (note 6(s) and 7): 6100 Selling expenses 6200 Administrative expenses 6450 Impairment gain and reversal of impairment loss determined in accordance with IFRS 9, net (note 6(d)) 6500 Net other income (note 6(i)) Net operating income Non-operating income and expenses (note 6(m), (t) and 7): 7100 Interest income 7010 Other income 7020 Other gains and losses, net 7050 Finance costs, net 7060 Share of profit (loss) of associates and joint ventures accounted for using equity method, net (note 6(f)) 7055 Impairment gain and reversal of impairment loss determined in accordance with IFRS 9, net (note 6(u)) 7900 Profit from continuing operations before tax 7950 Less: Income tax expenses (note 6(o)) Profit 8300 Other comprehensive income (note 6(p)): 8310 Items that will not be reclassified subsequently to profit or loss 8311 Gains (losses) on remeasurements of defined benefit plans 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income 8349 Income tax related to components of other comprehensive income that will not be reclassified to profit or loss Items that will not be reclassified subsequently to profit or loss 8360 Items that will be reclassified subsequently to profit or loss 8361 Exchange differences on translation of foreign financial statements 8399 Income tax related to components of other comprehensive income that will be reclassified to profit or loss (note 6(o)) Items that will be reclassified subsequently to profit or loss 8300 Other comprehensive income Total comprehensive income Profit attributable to: Owners of parent Non-controlling interests Comprehensive income attributable to: Owners of parent Non-controlling interests Earnings per share (note 6(q)) Basic earnings per share Diluted earnings per share	2021 Amount % $ 11,425,624 100 10,615,684 93 809,940 7 82,773 1 414,189 4 370 - 497,332 5 13,593 - 326,201 2 7,932 - 254,607 2 577,126 5 (138,466) (1) (3,890) - - - 697,309 6 1,023,510 8 113,098 1 910,412 7 - - (78,197) (1) - - (78,197) (1) (562) - 4 - (558) - (78,755) (1) $ 831,657 6 $ 886,384 8 24,028 - $ 910,412 7 $ 808,161 6 23,496 - $ 831,657 6 $ 2.45 $ 2.45	2020 (Adjusted) Amount % 10,776,324 100 9,996,651 93 779,673 7 56,356 1 386,138 4 - - 442,494 5 - - 337,179 2 28,447 - 216,523 2 746,724 7 (112,282) (1) (1,221) - 16,150 - 894,341 8 1,231,520 10 103,183 1 1,128,337 9 (46) - 30,949 - - - 30,903 - (195) - (27) - (222) - 30,681 - 1,159,018 9 1,100,637 10 27,700 - 1,128,337 9 1,130,315 9 28,703 - 1,159,018 9 3.02 3.02

See accompanying notes to consolidated financial statements.

																Total equity	8,578,553	-		8,578,553		1,128,337	30,681		1,159,018			-	(12,182)	(129,788)	-	(230,914)		153,305	17,588	(1,610)	-			9,533,970	910,412	(78,755)	(78,755)	831,657			-	-	(25,987)	(70,000)		941			10,270,581
														Non-	controlling	interests	267,967	(67,502)		200,465		27,700	1,003		28,703			-	(12,182)	-	-	(181,291)		153,305	17,588	(1,610)	-			204,978	24,028	(532)		23,496			-	-	(25,987)	(97,839)		941			105,589
													Total equity	attributable	to owners of	parent	8,310,586	67,502		8,378,088		1,100,637	29,678		1,130,315			-	-	(129,788)	-	(49,623)		-	-	-	-			9,328,992	886,384	(78,223)		808,161			-	-	-	27,839		-			10,164,992
															Treasury	shares	(681,835)	67,502		(614,333)		-	-		-			-	-	(129,788)	129,788	-		-	-	-	-			(614,333)	-	-		-			-	-	-	-		-			(614,333)
(English Translation of Consolidated Financial Statements Originally Issued in Chinese)	LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES	Consolidated Statements of Changes in Equity	For the Years Ended December 31, 2021 and 2020	(Expressed in Thousands of New Taiwan Dollars)	Equity attributable to owners of parent	Total other equity interest	Capital Stock Retained earnings Unrealized	gains		(losses) on	Exchange financial assets	differences on measured at	translation of fair value	Unappropriate Total foreign through other	Common Capital Legal Special d retained retained financial comprehensive Total other	stock surplus reserve reserve earnings earnings statements income equity interest	$ 4,047,293 130,417 471,151 - 4,414,355 4,885,506 14,712 (85,507) (70,795)	- - - - - - - - -		4,047,293 130,417 471,151 - 4,414,355 4,885,506 14,712 (85,507) (70,795)		- - - - 1,100,637 1,100,637 - - -	- - - - (41) (41) (239) 29,958 29,719		- - - - 1,100,596 1,100,596 (239) 29,958 29,719			- - 86,525 - (86,525) - - - -	- - - - - - - - -	- - - - - - - - -	(100,000) (398) - - (29,390) (29,390) - - -	- 16,614 - - (66,237) (66,237) - - -		- - - - - - - - -	- - - - - - - - -	- - - - - - - - -	- - - - (15,000) (15,000) - 15,000 15,000			3,947,293 146,633 557,676 - 5,317,799 5,875,475 14,473 (40,549) (26,076)	- - - - 886,384 886,384 - - -	- - - - - - (537) (77,686) (78,223)		- - - - 886,384 886,384 (537) (77,686) (78,223)			- - 98,997 - (98,997) - - - -	- - - 182,577 (182,577) - - - -	- - - - - - - - -	- 27,839 - - - - - - -		- - - - 70,060 70,060 - (70,060) (70,060)			$ 3,947,293 174,472 656,673 182,577 5,992,669 6,831,919 13,936 (188,295) (174,359)
																	Balance on January 1, 2020	Effects of retrospective application		Equity at beginning of period after adjustments		Profit	Other comprehensive income		Total comprehensive income		Appropriation and distribution of retained earnings:	Legal reserve appropriated	Cash dividends of ordinary shares	Purchase of treasury share	Retirement of treasury share	Difference between consideration and carrying amount of subsidiaries acquired or	disposed of	Due to business combination	Changes in non-controlling interests	Disposal of subsidiaries	Disposal of investments in equity instruments designated at fair value through other		comprehensive income	Balance on December 31, 2020	Profit	Other comprehensive income		Total comprehensive income		Appropriation and distribution of retained earnings:	Legal reserve appropriated	Special reserve appropriated	Cash dividends of ordinary shares	Difference between consideration and carrying amount of subsidiaries acquired or	disposed of	Disposal of investments in equity instruments designated at fair value through other		comprehensive income	Balance on December 31, 2021

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Consolidated Statements of Cash Flows

For the Years Ended December 31, 2021 and 2020 (Expressed in Thousands of New Taiwan Dollars)

2021 Cash flows from operating activities: Profit before tax $ 1,023,510 Adjustments: Adjustments to reconcile profit (loss): Depreciation expense 56,096 Amortization expense 10,210 Impairment gain and reversal of impairment loss determined in accordance with IFRS 9 370 Net gain on financial assets or liabilities at fair value through profit or loss (590,136) Interest expense 138,466 Interest income (7,932) Dividend income (238,441) Share of loss of associates and joint ventures accounted for using equity method 3,890 Loss (gain) on disposal of property, plan and equipment 1,260 Loss (gain) on disposal of investment properties (13,593) Loss (gain) on disposal of investments (10,838) Loss on bond redemption 28,772 Profit from lease modification (57) Impairment loss - Total adjustments to reconcile profit (loss) (621,933) Changes in operating assets and liabilities: Financial assets at fair value through profit or loss 1,225,696 Contract assets (429,297) Notes receivable (12,984) Accounts receivable (510,586) Other receivable 16,677 Inventories (50,151) Net defined benefit assets - Other current financial assets (103,718) Other current assets (8,834) Current assets recognized as incremental costs to obtain contract with customers - Contract liabilities (17,166) Notes payable 144,629 Accounts payable (130,540) Other payable 71,336 Provisions (12,721) Other current liabilities (14,097) Total adjustments (453,689) Cash inflow (outflow) generated from operations 569,821 Interest received 4,116 Dividends received 238,441 Interest paid (154,879) Income taxes paid (142,593) Net cash (outflows) inflows from operating activities 514,906

2020 1,231,520 54,750 8,215 (16,150) (767,795) 112,282 (28,447) (193,788) 1,221 (461) 9,360 1,496 - (3) 7,312 (812,008) (675,096) 134,130 30,397 477,920 (1,863) (667,579) (469) (256,999) (58,445) (6,417) (81,033) (388,012) (399,450) 96,906 (1,045) (5,201) (2,614,264) (1,382,744) 28,724 193,788 (112,550) (237,348) (1,510,130)

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements and Report Originally Issued in Chinese) LONG BON INTERNATIONAL CO., LTD. AND ITS SUBSIDIARIES

Consolidated Statements of Cash Flows(CONT�D)

For the Years Ended December 31, 2021 and 2020 (Expressed in Thousands of New Taiwan Dollars)

2021 Cash flows from investing activities: Acquisition of financial assets at fair value through other comprehensive income (84,190) Proceeds from disposal of financial assets at fair value through other comprehensive income 141,031 Proceeds from capital reduction of financial assets at fair value through other comprehensive income 36,228 Acquisition of financial assets at amortized cost (270,002) Acquisition of investments accounted for using equity method (31,724) Proceeds from disposal of investments accounted for using equity method - Prepayments for land and buildings - Acquisition of subsidiaries (net of cash received) - Acquisition of property, plant and equipment (121,662) Proceeds from disposal of property, plant and equipment 4,618 Other receivables - Acquisition of intangible assets (7,500) Proceeds from disposal of investment properties 178,144 Acquisition of investment properties (688,276) Other current financial assets (209,153) Other non current financial assets 572,627 Other non-current assets 28,189 Net cash (outflows) inflows from investing activities (451,670) Cash flows from financing activities: Increase in short-term loans 193,674 Increase in short-term notes and bills payable 389,200 Repayments of bonds (2,523,458) Proceeds from long-term debt 1,786,360 Repayments of long-term debt (537,650) Increase in guarantee deposits received 127,381 Payment of lease liabilities (20,656) Repurchase treasury shares - Cash dividends paid by subsidiaries (25,987) Acquisition of ownership interests in subsidiaries (70,000) Change in non-controlling interests - Net cash inflows (outflows) from financing activities (681,136) Effect of exchange rate changes on cash and cash equivalents (125) Net decrease in cash and cash equivalents (618,025) Cash and cash equivalents, beginning of period 1,911,545 Cash and cash equivalents, end of period $ 1,293,520

2020 (88,187) 112,052 - (79,980) (3,900) 4,235 (230,280) (303,916) (1,683,117) 2,883 248,733 (6,563) 93,402 (296,067) 87,372 (756) (8,324) (2,152,413) 2,277,772 168,317 - 202,520 (264,524) 1,345 (30,720) (129,788) (12,182) (230,914) 17,588 1,999,414 26 (1,663,103) 3,574,648 1,911,545

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements For the Years Ended December 31, 2021 and 2020

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

(1) Company history

Long Bon International Co., Ltd. (the �Company�) was established in January 22, 1988 in accordance with the Company Act of the Republic of China. The Company�s registered office address is located at 9F., No. 50, Sec. 1, Zhongxiao W. Rd., Zhongzheng Dist., Taipei City 100, Taiwan (R.O.C.) Originally known as Long Bon Construction Co., Ltd., with its common stock listed on the Taiwan Stock Exchange (TWSE) in September 1992, the Company was renamed Long Bon Development Co., Ltd. in 1997, and renamed Long Bon International Co., Ltd. anew in 2009. The major business activities of the Company and its subsidiaries (the �Group�) are the commercial building rental service and sale, property investment and development, and architecture and civil engineering. Please refer to note 4(c)2. for further information.

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

The accompanying consolidated financial statements were authorized for issue by the Board of Directors on March 28, 2022.

(3) New standards, amendments and interpretations adopted:

• (a) Impact of adopting new, revised, or amended standards and interpretations endorsed by the Financial Supervisory Commission, R.O.C. (�FSC�).

The Group has initially adopted the following amendments to IFRS, from January 1, 2021, which did not have any material impact on its consolidated financial statements.

Amendments to IFRS 4 �Extension of the Temporary Exemption from Applying IFRS 9�

• Amendments to IFRS 9, IAS39, IFRS7, IFRS 4 and IFRS 16 �Interest Rate Benchmark Reform� Phase 2�

The Group has initially adopted the following amendments to IFRS, from April 1, 2021, which did not have any material impact on its consolidated financial statements.

Amendments to IFRS 16 �Covid-19-Related Rent Concessions beyond June 30, 2021�

• (b) The impact of IFRS endorsed by the FSC but not yet effective

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

Amendments to IAS 16 �Property, Plant and Equipment Proceeds before Intended Use�

• Amendments to IAS 37 �Onerous Contracts Cost of Fulfilling a Contract�

Annual Improvements to IFRS Standards 2018�2020

Amendments to IFRS 3 �Reference to the Conceptual Framework�

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) The impact of IFRS issued by IASB but not yet endorsed by the FSC

The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or Interpretations Amendments to IAS 1 �Classification of Liabilities as Current or Non-current�

Content of amendment Effective date per IASB The amendments aim to promote consistency in applying the requirements by helping companies determine whether, in the statement of balance sheet, debt and other liabilities with an uncertain settlement date should be classified as current (due or potentially due to be settled within one year) or non-current. The amendments include clarifying the classification requirements for debt a company might settle by converting it into equity. January 1, 2023

The Group is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its consolidated financial position and consolidated financial performance. The results thereof will be disclosed when the Group completes its evaluation.

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

(4) Summary of significant accounting policies:

The significant accounting policies applied in the preparation of these consolidated financial statements are set out as below. Except for changes in accounting policies indicated in note 3, the following accounting policies were adopted consistently throughout the presented periods in the consolidated financial statements.

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers (hereinafter referred to as �the Regulations�) and the IFRSs, IASs, IFRIC Interpretations, and the SIC Interpretations endorsed and issued into effect by the FSC.

(b) Basis of preparation

(i) Basis of measurement

The consolidated financial statements have been prepared on the historical cost basis except for the following material items in the statement of financial position:

• 1) Financial instruments measured at fair value through profit or loss are measured at fair value;

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 2) Financial assets at fair value through other comprehensive income are measured at fair value;

• 3) The defined benefit assets are measured at fair value of the plan assets less the present value of the defined benefit obligation, limited as explained in note 4(s).

(ii) Functional and presentation currency

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

(c) Basis of consolidation

• (i) Principle for the preparation of the consolidated financial statements

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

The financial statements of the subsidiaries are included in the consolidated financial statements from the date hat control commences until the date that control ceases. Intra-group transactions and balances, and any unrealized income and expenses arising from intra-group transactions are eliminated in preparing the consolidated financial statements. Losses applicable to the non-controlling interests in a subsidiary are allocated to the non-controlling interests even if doing so causes the non-controlling interests to have a deficit balance.

Subsidiaries� financial statements are adjusted to align the accounting policies with those of the Group.

Changes in the Group�s ownership interests in a subsidiary that do not result in a loss of control are accounted for as equity transactions. The difference between the adjustment of the non controlling interests and the fair value of the consideration paid or received is recognized directly in equity and attributed to the shareholders of the Company.

When the Group loses control of its subsidiaries, the assets (including goodwill) and liabilities and any non controlling interests of the former subsidiary at their carrying amounts at the date when control is lost will be derecognized and any investment retained in the former subsidiary at its fair value at the date when control is lost will be remeasured in the consolidated financial statement. The Group recognizes as gain or loss in profit or loss the difference between (i) the fair value of the consideration received as well as any investment retained in the former subsidiary at its fair value at the date when control is lost; and (ii) the assets (including any goodwill), liabilities of the subsidiary as well as any related non controlling interests at their carrying amounts at the date when control is lost, as gain or loss in profit or loss. When the Group loses control of its subsidiary, it accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if it had directly disposed of the related assets or liabilities.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (ii) List of subsidiaries in the consolidated financial statements

The subsidiaries included in the consolidated financial statements were as follows:

Name of investor	Name of subsidiary	Principal activity	Shareholding December 31, 2021 December 31, 2020 Note % 100.00 % 100.00 % 100.00 % 100.00 % 96.89 % 96.89 % 90.10 % 90.10 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 99.41 % 82.13 Note % 100.00 % 100.00 % 89.23 % 89.23 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00	Shareholding December 31, 2021 December 31, 2020 Note % 100.00 % 100.00 % 100.00 % 100.00 % 96.89 % 96.89 % 90.10 % 90.10 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 99.41 % 82.13 Note % 100.00 % 100.00 % 89.23 % 89.23 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00
			December 31, 2021 % 100.00 % 100.00 % 96.89 % 90.10 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 99.41 % 100.00 % 89.23 % 100.00 % 100.00 % 100.00 % 100.00
The Company Everwin Investment Co, Ltd. Long Fu Real Estate Development Co., Ltd. Long Hui Development Co., Ltd. Rei Ju Construction Co., Ltd. ReiYu Green Energy Technology Co., Ltd.	Everwin Investment Co., Ltd. Investment Long Bao Co., Ltd. Funeral Service Long Jee Holding(s) Pte Ltd. Property investment and development Rei Ju Construction Co., Ltd. Architecture and civil engineering Long Fu Real Estate Development Co., Ltd. Funeral Service Long De International Development Co., Ltd. Investment Long Hui Development Co., Ltd. Investment Dong Hua International of Golf Recreation Co., Ltd. (originally known as �Bao Hui Development Co., Ltd.�) Exercise facility and amenity San Jhih Cih An Yuan Ltd. Funeral Service Gold Coast Golf Co., Ltd. (originally known as �North Bay Recreation Co., Ltd.�) Exercise facility and amenity Rei Cheng Construction Co., Ltd. Architecture and civil engineering Xiamen Rei Ju Construction Engineer Co. Construction consultancy ReiYu Green Energy Technology Co., Ltd. Architecture and civil engineering Ryan Development Corp. Property investment and development Sheng Ji Interior Decoration Co., Ltd. Interior Decoration ReBio Green Innovation Co., Ltd. Environmental Engineering			% 100.00 % 100.00 % 96.89 % 90.10 % 100.00 % 100.00 % 100.00 % 100.00 % 100.00 % 82.13 Note % 100.00 % 89.23 % 100.00 % 100.00 % 100.00 % 100.00

Note : The Group acquired 1,556 thousand shares from non-related parties for capital increase by cash of $70,000 thousand, increasing the cumulative shareholdings of the Group to 99.41%. As a result of changes in percentage of ownership, the capital surplus balance of $27,839 thousand was recognized.

(iii) Subsidiaries excluded in the consolidated financial statements: None.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(d) Foreign currency transactions and operations

• (i) Foreign currency transactions

Transactions in foreign currencies are translated into the respective functional currencies of tthe Group entities at the exchange rates at the dates of the transactions. At the end of each subsequent reporting period, monetary items denominated in foreign currencies are translated into the functional currencies using the exchange rate at that date. Non-monetary items denominated in foreign currencies that are measured at fair value are translated into the functional currencies using the exchange rate at the date that the fair value was determined. Nonmonetary items denominated in foreign currencies that are measured based on historical cost are translated using the exchange rate at the date of the transaction.

Exchange differences are generally recognized in profit or loss, except for an investment in equity securities designated as at fair value through other comprehensive income, which is recognized in other comprehensive income.

(ii) Foreign operations

The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are translated to the Group�s functional currency at the exchange rates at the reporting date. The income and expenses of foreign operations are translated to the Group�s functional currency at the average exchange rate. Foreign currency differences are recognized in other comprehensive income.

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

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

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

The Group�s primary business activities are construction projects and the leasing of real estate, and the operating cycles are normally more than one year. Assets and liabilities associated with construction projects were classified as either current or non current according to operating cycle spanning between three to five years, and the other assets and liabilities were classified as either current or non current. Assets that met one of the following conditions were recognized as current assets while all other assets that were not current were recognized as non current assets:

• (i) It expected to realize, or intends to be sell or consume it, in its normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (iii) It is expected to be realized within twelve months after the reporting date; or

• (iv) The asset is cash and cash equivalent unless the asset is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date.

A liability is classified as current under one of the following criteria, and all other liabilities are classified as non-current.

• (i) It is expected to be settled in its normal operating cycle;

• (ii) It is held primarily for the purpose of trading;

• (iii) It is due to be settled within twelve months after the reporting date; or

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

• (f) Cash and cash equivalents

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

(g) Financial instruments

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

(i) Financial assets

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

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

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 1) Financial assets measured at amortized cost

A financial asset is measured at amortized cost if it meets both of the following conditions and is not designated as measured at fair value through profit or loss:

it is held within a business model whose objective is to hold assets to collect contractual cash flows; and

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

A financial asset measured at amortized cost is initially recognized at amortized cost, plus/minus the cumulative amortization using the effective interest method, and the measurement of the amortized cost of any loss allowance is adjusted. The amortized cost is reduced by impairment losses. Interest income, foreign exchange gains and losses, and impairment losses are recognized in profit or loss. Any gain or loss on derecognition is recognized in profit or loss.

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

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

it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

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

On initial recognition, the Group is able to make an irrevocable election to present subsequent changes in the fair value of investments in equity instruments that is not held for trading in other comprehensive income. This election is made on an instrument by instrument basis.

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

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

Dividend income derived from equity investments is recognized on the date that the Group�s right to receive the dividends is established (usually the ex dividend date).

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

3) Financial assets at fair value through profit or loss (FVTPL)

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

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

4) Impairment of financial assets

The Group recognizes loss allowances for expected credit losses on financial assets measured at amortized cost (including cash and cash equivalents FVOCI, notes and accounts receivable, other receivables, guarantee deposit paid and other financial assets), and contract assets.

The Group measures loss allowances at an amount equal to lifetime expected credit loss (�ECL�), except for the following which are measured as 12 month ECL:

debt securities that are determined to have low credit risk at the reporting date; and

• other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the expected life of the financial instrument) has not increased significantly since initial recognition.

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

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

The Group assumes that the credit risk on a financial asset has increased significantly if it is more than 30 days past due.

The Group considers a financial asset to be in default when the financial asset is more than 90 days past due or the debtor is unlikely to pay its credit obligations to the Group in full.

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

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

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

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

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

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

significant financial difficulty of the borrower or issuer;

a breach of contract such as a default or being more than 90 days past due;

the lender of the borrower, for economic or contractual reasons relating to the borrower's financial difficulty, having granted to the borrower a concession that the lender would not otherwise consider;

• it is becoming probable that the borrower will enter bankruptcy or other financial reorganization; or

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

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

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

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

5) Derecognition of financial assets

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

The Group enters into transactions whereby it transfers assets recognized in its statement of balance sheet, but retains either all or substantially all of the risks and rewards of the transferred assets. In these cases, the transferred assets are not derecognized.

• (ii) Financial liabilities and equity instruments

• 1) Classification of debt or equity

Debt or equity instruments issued by the Group are classified as financial liabilities or equity in accordance with the substance of the contractual agreement.

2) Equity instrument

An equity instrument is any contract that evidences a residual interest in the assets of the Group after deducting all of its liabilities. Equity instruments are recognized at the amount of consideration received less the direct issuing cost.

3) Treasury shares

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

4) Financial liabilities

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

5) Derecognition of financial liabilities

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

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

• 6) Offsetting of financial assets and liabilities

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

(h) Inventories

The original costs of inventories shall comprise all necessary expenditure incurred in bringing the inventories to their present condition and location and for sale or construction. Besides, the cost of real estate development includes construction cost, land cost, borrowing cost, and project expense. Upon completion, the construction in progress was transferred to buildings and land held for sale, and the operating costs were recognized according to the ratio of sales to construction and development cost. Columbarium under construction, including the cost of land and construction, was reclassified as operating costs for the current period upon completion in accordance with the dimensions of the columbarium niches of which the permanent right of use have been transferred to customers; the remaining columbarium niches were reclassified as columbarium niches for sale. Net realizable value is the balance that estimates the selling price, less, estimated costs of completion and the estimated costs of selling. The methods of determining the net realizable value are as follows:

• (i) Land held for development: the net realizable value is the replacement cost or estimated price (based on the market condition), less, the estimated selling expenses at the end of the period.

• (ii) Building construction and columbarium in progress: the net realizable value is the estimated price (based on the market condition), less, the estimated costs of completion and selling expenses at the end of the period.

• (iii) Real estate and columbarium held for sale: the net realizable value is the estimated price (based on the market condition), less, the estimated selling expenses at the end of the period.

• (i)

• Non-current assets held for sale

Non-current assets or disposal groups comprising assets and liabilities that are highly probable to be recovered primarily through sale rather than through continuing use, are reclassified as held for sale. Immediately before classification as held for sale, the assets, or components of a disposal group, are remeasured in accordance with the Group�s accounting policies. Thereafter, generally, the assets or disposal groups are measured at the lower of their carrying amount and fair value less costs to sell.

Any impairment loss on a disposal group is first allocated to goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to assets not within the scope of IAS 36 � Impairment of Assets. Such assets will continue to be measured in accordance with the Group�s accounting policies.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Impairment losses on assets initially classified as held for sale and any subsequent gains or losses on remeasurement are recognized in profit or loss. Gains are not recognized in excess of the cumulative impairment loss that has been recognized.

Once classified as held for sale, investment property is no longer amortized or depreciated.

(j) Investment in associates

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

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

The consolidated financial reports include the Group�s share of the profit or loss and other comprehensive income of those associates, after adjustments to align their accounting policies with those of the Group from the date on which significant influence commences until the date on which significant influence ceases. When an associate�s equity changes due to reasons other than profit and loss or comprehensive income, which did not result in changes of the Group�s shareholding percentage in the associate, the Group recognizes equity changes attributable to the Group by its shareholding percentage as capital surplus.

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

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

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

When the Group subscribes to additional shares in an associate at a percentage different from its existing ownership percentage, the resulting carrying amount of the investment differs from the amount of the Group�s proportionate interest in the net assets of the associate. The Group records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus. Moreover, a difference shall be debited to retained earnings when the balance of capital surplus resulting from investments accounted for using equity method is not sufficient to be written off. If the Group�s ownership interest is reduced due to the additional subscription to the shares of the associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate will be reclassified to profit or loss on the same basis as would be required if the associate had directly disposed of the related assets or liabilities

(k) Joint Arrangements

Joint arrangement is the agreement of two or multiple parties with joint controls over a delegated entity. Joint arrangement includes joint operations and joint venture. Its traits are as follows: (a) All parties are bound by the arrangement; (b) Joint arrangement would suggest that at least two parties possess joint control over the arrangements. IFRS 11 �Joint Arrangements� defines joint control as the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities (i.e. activities that significantly affect the returns of the arrangement) require the unanimous consent of the parties sharing control.

A joint arrangement whereby the parties that have joint control of the arrangement have rights to the assets, and obligations for the liabilities, relating to the arrangement. The Group accounts for the assets, liabilities, revenues and expenses in relation to its interest in a joint operation in accordance with the IFRSs applicable to the particular assets, liabilities, revenues and expenses. When assessing whether a joint arrangement is a joint operation or a joint venture, the Group considers the structure and legal form of the arrangement, the terms agreed by the parties in the contractual arrangement and, when relevant, other facts and circumstances.

(l) Investment property

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

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

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

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (m) Property, plant and equipment

• (i) Recognition and measurement

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

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

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

(ii) Subsequent cost

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

• (iii) Depreciation

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

Land is not depreciated.

The estimated useful lives for the current and comparative years of significant items of property, plant, and equipment are as follows:

1)	Buildings	3 55 years
2)	Transportation equipment	5 years
3)	Office equipment	3 years
4)	Other equipment	1 8 years

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

(n) Leases

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

• (i) As a leasee

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

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

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

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

fixed payments, including in-substance fixed payments;

• variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;

amounts expected to be payable under a residual value guarantee; and

payments or penalties for purchase or termination options that are reasonably certain to be exercised.

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

there is a change in future lease payments arising from the change in an index or rate; or

there is a change in the Group�s estimate of the amount expected to be payable under a residual value guarantee; or

• there is a change in the assessment of whether it will have the option to exercise a purchase; or

there is a change in its assessment of whether it will exercise an extension or termination option; or

there is any lease modification in lease subject, scope of the lease, or other terms.

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

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

The Group placed right-of-use assets and lease liabilities under the line item in the balance sheet.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

The Group has elected not to recognize right of use assets and lease liabilities for leases that have a lease term of 12 months or less and leases of low value assets. The Group recognizes the lease payments associated with these leases as an expense on a straight line basis over the lease term.

(ii) As a leasor

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

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

The Group recognizes a finance lease receivable at an amount equal to its net investment in the lease. Initial direct costs, such as lessors to negotiate and arrange a lease, are included in the measurement of the net investment. The interest income is recognized over the lease term based on a pattern reflecting a constant periodic rate of return on the net investment in the lease. The Group recognizes lease payments received under operating leases as income on a straight-line basis over the lease term as part of �other income�.

(o) Intangible assets

(i) Recognition and measurement

Goodwill arising on the acquisition of subsidiaries is measured at cost, less accumulated impairment losses.

Other intangible assets, including computer software purchased by the Group, are measured at cost less accumulated amortization and any accumulated impairment losses.

(ii) Subsequent expenditure

Subsequent expenditure was capitalized only when it would increase the future economic benefits embodied in the specific asset to which it related. All other expenditures, including expenditure on internally generated goodwill and brands, was recognized in profit or loss as incurred.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Amortization

Amortization was calculated over the cost of the asset, less its residual value, and was recognized in profit or loss on a straight line basis over the estimated useful lives of intangible assets, other than goodwill, from the date that they were available for use.

The estimated useful lives for the current and comparative years of significant items of intangible assets are as follows:

1) Computer software 1~5 years

Amortization methods, useful lives, and residual values are reviewed at each annual reporting date and adjusted if needed.

(p) Impairment of non-financial assets

At each reporting date, the Consolidated Company reviews the carrying amounts of its nonfinancial assets (other than inventories, contract assets, deferred tax assets) to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. Goodwill is tested annually for impairment.

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

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

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

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

An impairment loss in respect of goodwill is not reversed. For other nonfinancial assets, an impairment loss is reversed only to the extent that the asset�s carrying amount that would have been determined (net of depreciation or amortization), had no impairment loss been recognized for the assets in prior years.

(q) Provisions

A provision is recognized if, as a result of a past event, the Group has a present obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognized as interest expense.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Warranties

A provision for warranties is recognized when the underlying products or services are sold. The provision is weighting factors based on historical experience of warranty claims rate and other possible outcomes against their associated probabilities.

(ii) Onerous contracts

A provision for onerous contracts is recognized when the expected benefits to be derived by the Group from a contract are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract. Before a provision is established, the Group recognizes any impairment loss on the assets associated with that contract.

(r) Revenue recognition

(i) Revenue from contracts with customers

Revenue is measured based on the consideration that the Company expects to be entitled in the transfer of goods or services to a customer. The Group recognizes revenue when it satisfies a performance obligation by transferring control of a good or a service to a customer. The following is a description of the Group�s major revenues:

1) Construction contracts

The Group enters into contracts to build residential properties, commercial buildings and public constructions. Because its customer controls the asset as it is constructed, the Group recognizes revenue over time on the basis of the construction costs incurred to date as a proportion of the total estimated costs of the contract. The consideration promised in the contract includes fixed and variable amounts. The customer pays the fixed amount based on a payment schedule. For some variable considerations (for example, a penalty payment calculated based on delay days and price adjustment subsidy) are estimated using the expected value method with reference to historical experience. Other variable considerations are estimated using the most likely amount. The Group recognizes revenue only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not occur. If the Group has recognized revenue, but not issued a bill, then the entitlement to consideration is recognized as a contract asset. The contract asset is transferred to receivables when the entitlement to payment becomes unconditional public constructions.

If the Group cannot reasonably measure its progress towards complete satisfaction of the performance obligation of a construction contract, the Group shall recognize revenue only to the extent of the costs expected to be recovered.

A provision for onerous contracts is recognized when the Group expects the unavoidable costs of performing the obligations under a construction contract exceed the economic benefits expected to be received under the contract.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Estimates of revenues, costs or extent of progress toward completion are revised if circumstances change. Any resulting increases or decreases in estimated revenues or costs are reflected in profit or loss in the period in which the circumstances that give rise to the revision become known by management.

For residential properties, and public constructions, the Group offers a standard warranty to provide assurance that they comply with agreed upon specifications and has recognized warranty provisions for this obligation.

2) Land development and sale of real estate

The Group develops and sells residential properties and usually sales properties in advance during construction or before construction begins. Revenue is recognized when control over the properties has been transferred to the customer. The properties have generally no alternative use for the Group due to contractual restrictions. However, an enforceable right to payment does not arise until legal title of a property has passed to the customer. Therefore, revenue is recognized at a point in time when the legal title has passed to the customer.

The revenue is measured at the transaction price agreed under the contract. For sale of readily available house, in most cases, the consideration is due when legal title of a property has been transferred. While deferred payment terms may be agreed in rare circumstances, the deferral never exceeds twelve months. The transaction price is therefore not adjusted for the effects of a significant financing component. For preselling properties, the consideration is usually received by installment during the period from contract inception until the transfer of properties to the customer. If the contract includes a significant financing component, the transaction price will be adjusted for the effects of the time value of money during the period, using the specific borrowing rate of the construction project. Receipt of a prepayment from a customer is recognized as contract liability. Interest expense and contract liability are recognized when adjusting the effects of the time value of money. Accumulated amount of contract liability is recognized as revenue when control over the property has been transferred to the customer.

Certain contracts include multiple deliverables, such as sale of residential properties and a decoration service. The Group accounts for the decoration service as a single performance obligation, and the transaction price is allocated to the decoration service on a relative standalone selling price basis. If a standalone selling price is not directly observable, it is estimated based on expected cost plus margin. Decoration services revenue are recognized upon the completion of service.

3) Construction and sale of columbarium niches and tablet

The Group invests in the construction and sale of columbarium niches and memorial tablets. The Group recognizes revenues when control of the product is transferred. Owing to contractual restriction, normally the products have no alternative use for the Group. Therefore, subsequent to the completion of the project, the Group would recognize revenue upon the transfer of the permanent use right to the customer.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

In respect of performance obligations for columbarium niche management, management revenue is classified as consideration of the maintenance of the columbarium niche specified in the contract, which conforms to contract specification to satisfy performance obligation over time. Therefore, the Group recognizes revenue when the performance obligations are gradually fulfilled over time.

4) Funeral services

Funeral services revenues are recognized upon the completion of the service.

5)

Recreation services

The Group provides sports facilities, catering services, and other related management services. Revenue from sports facility services was recognized upon the completion of services enterprise; catering service revenue was recognized when the merchandise was delivered to the customer.

6) Financing components advance real estate receipts

The revenue is measured at the transaction price agreed under the contract. For sale of readily available house, in most cases, the consideration is due when legal title of a property has been transferred. While deferred payment terms may be agreed in rare circumstances, the deferral never exceeds twelve months. For pre-selling properties, the consideration is usually received by installment during the period from contract inception until the transfer of properties to the client; the Group assesses, on a separate contract basis, as to whether the consideration in the contract differs from the current selling price and whether the aforementioned consideration received in advance involves financing factors. The Group requires advance receipt of consideration mainly as a protective measure to mitigate losses on re sale price and the coverage therefor resulted from the default of clients. Therefore, consideration of this sort is not classified as a significant financing component of material financing from clients. As a consequence, the Group does not adjust any of the transaction prices for the time value of money.

(ii) Contract costs

1) Incremental costs of obtaining a contract

The Group recognizes as an asset the incremental costs of obtaining a contract with a customer if the Group expects to recover those costs. The incremental costs of obtaining a contract are those costs that the Group incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained. Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained shall be recognized as an expense when incurred, unless those costs are explicitly chargeable to the customer regardless of whether the contract is obtained.

The Group recognizes the expected recoverable incremental costs incurred in the sales of customer contracts as assets, and amortizes them on a systematic basis consistent with the transfer of presale houses to customers.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(s) Employee benefits

(i) Defined contribution plans

Obligations for contributions to defined contribution plans are expensed as the related service is provided.

• (ii) Defined benefit plans

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

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

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

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

• (iii) Short-term employee benefits

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

(t) Income taxes

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

Current taxes comprise the expected tax payables or receivables on the taxable profits (losses) for the year and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax payables or receivables are measured using tax rates enacted or substantively enacted at the reporting date.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Deferred income taxes are recognized in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred taxes are not recognized for the following exceptions:

• (i) Assets and liabilities that are initially recognized but are not related to the business combination and have no effect on net income or taxable gains (losses) during the transaction.

• (ii) temporary differences related to investments in subsidiaries, associates and joint arrangements to the extent that the Group is able to control the timing of the reversal of the temporary differences and it is probable that they will not reverse in the foreseeable future; and

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

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

Deferred tax assets and liabilities may be offset against each other if the following criteria are met:

• (i) the Group has a legally enforceable right to set off currenttax assets against current tax liabilities; and

• (ii) the deferred tax assets and the deferred tax liabilities relate to income taxes levied by the same taxation authority on either:

• 1) the same taxable entity; or

• 2) different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

(u) Business combination

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

All transaction costs relating to a business combination are recognized immediately as expenses when incurred, except for the issuance of debt or equity instruments.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group shall measure any non-controlling interests in the acquiree either at fair value or at the non-controlling interest�s proportionate share of the acquiree�s identifiable net assets, if the noncontrolling interests are present ownership interests and entitle their holders to a proportionate share of the entity�s net assets in the event of liquidation. Other non-controlling interests are evaluated by their fair value or by another basis permitted by the IFRSs endorsed by the FSC.

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

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

(v) Earnings per share

The Group discloses the Group�s basic and diluted earnings per share attributable to ordinary equity holders. The calculation of basic earnings per share is based on the profit attributable to the ordinary shareholder of the Company divided by weighted average number of ordinary shares outstanding. The calculation of diluted earnings per share is based on the profit attributable to ordinary shareholders of the Company divided by weighted average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares. The Group�s dilutive potential ordinary shares comprise employee stock options.

(w) Operating segments

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

(x) Changes in accounting policies

In the second quarter of 2021, the Group in accordance with the newly promulgated interpretations by the Accounting Research and Development Foundation, stipulated that when the parent company prepares the consolidated financial statements, the parent company stock held by the subsidiary shall be recognized as treasury share according to the shareholding ratio of the subsidiary ,and the remainder is deducted from non-controlling interests in the consolidated balance sheet.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

In accordance with International Accounting Standard 8 Accounting Policies, Changes in Accounting Estimates and Errors (�IAS 8�), the changes in accounting policy shall be applied retrospectively, and the accounting change has no impact on total equity and earnings per share. The results are summarized as follows.

C onsolidated balance sheets

January 1, 2020 Treasury shares Non-controlling interests December 31, 2020 Treasury shares Non-controlling interests	As previously reported (681,835) 267,967 (681,835) 272,480	Impact of changes in accounting policies As restated 67,502 (614,333) (67,502) 200,465 67,502 (614,333) (67,502) 204,978

Consolidated statement of comprehensive income

Basic earnings per share Diluted earnings per share		For the years ended December 31	For the years ended December 31
	2021 As reported $ 2.45 2.45		2020
		As previously reported 3.05 3.05	Impact of changes in accounting policies As restated (0.03) 3.02 (0.03) 3.02

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

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

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

Information about judgments made in applying accounting policies that have the most significant effects on the amounts recognized in the consolidated financial statements: None.

Information about assumptions and estimation uncertainties that have a significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities within the next financial year is as follows. Those assumptions and estimation have been updated to reflect the impact of COVID-19 pandemic:

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(a) Recognition of profit or loss on project contracts

The major business activities involve construction contracts entered into with clients to provide design as well as technique, and additional works intertwined or interdependent regarding functions or ultimate purposes. When determining the transaction price, the amount of consideration, which may change due to discounts, rebates, penalties, or other similar items. Construction contracts are based on the degree of completion of the contract to recognize contract revenue over time, and the degree of completion is measured by the ratio of the contract cost incurred so far to the estimated total contract cost. The Group considers the nature of each project, estimated construction period, project, construction process, construction method, and estimated contract amount to estimate the change consideration and total contract cost. Changes in these estimates might affect the calculation of the percentage of completion and related profits from construction contracts.

(b) Recognition and measurement of provisions and contingent liabilities

Provision for unsettled litigation and claims is recognized when it is probable that it will result in an outflow of the Group�s resources and the amount can be reasonably estimated. Since the ultimate resolution of litigation and claims cannot be predicted with certainty, the final outcome or the actual cash outflow may be materially different from the estimated liability. Refer to note 9(c) for the description of the lawsuit.

Valuation Processes

The accounting policy and disclosure of the Group include that measuring the financial and nonfinancial assets and financial liabilities at fair value. The Group establishes the relevant internal control system for the fair value measure. Including the establishment of an evaluation team to be responsible for reviewing all significant fair value measurements (including the third level of fair value) and reporting directly to the Chief Financial Officer. The valuation team periodically reviews significant unobservable inputs and adjustments. If the input value used to measure the fair value is used from external third party information (such as broker or pricing service), the evaluation team will evaluate the evidence provided by the third party to support the input value to determine the rating and its fair value class is in compliance with the International Financial Reporting Standards. The evaluation team also reports on major issues to the audit committee of the Group. The investment property is appraised regularly either by the Group�s property development segment according to the valuation method and the parametric assumptions announced by FSC or by an external appraiser.

The Group strives to use market observable inputs when measuring assets and liabilities. Fair values are based on the degree to which the fair value can be observed and are grouped into Level 1 to Level 3 as follows:

Level 1: Public offer (unadjusted) of the same asset or liability in the active market.

• Level 2: In addition to the public quotation at the first level, the input parameters of the asset or liability are observed directly (ie, price) or indirectly (i.e. derived from the price).

• Level 3: Input parameters for assets or liabilities are not based on observable market data (non-observable parameters).

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For assumptions used in measuring fair value

For any transfer within the fair value hierarchy, the impact of the transfer is recognized on the reporting date.

Further information on the assumptions used in measuring the fair value

Further information about the assumptions made in measuring fair values is included in the following notes:

(a) Note 6(u) Financial instrument

(6) Explanation of significant accounts:

• (a) Cash and cash equivalents

nation of significant accounts: Cash and cash equivalents
		December	31,	December 31,
		2021		2020
Cash	$		5,708	7,910
Check account deposits		26,109		812
Demand deposits		1,261,703		1,902,823
Cash and cash equivalents in the consolidated statement of	$	1,293,520		1,911,545
cash flows
Please refer Note 6(u) for the interest rate risk and sensitivity		analysis of the financial assets an
liabilities of the Group.
Financial assets at fair value through profit or loss
		December	31,	December 31,
		2021		2020
Financial assets at fair value through profit or loss:
Non-derivative financial assets
Domestic listed stocks	$	-		5,182,150
Beneficiary certificate		228,896		11,725
Corporate bonds		-		1,919
Total	$	228,896		5,195,794

Please refer Note 6(u) for the interest rate risk and sensitivity analysis of the financial assets and liabilities of the Group.

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

• (i) The Group had a significant influence on Taisun Enterprise Co., Ltd. since December 2021. For the transfer from financial assets at fair value through profit or loss to investments accounted for using equity method, please refer to Note 6(f).

• (ii) As of December 31, 2021 and 2020, the financial assets at fair value through profit and loss of the Group pledged as collateral, please refer to Note 8.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Financial assets at fair value through other comprehensive income

Non current equity investments at fair value through other comprehensive income Domestic listed stocks Taiwan Semiconductor Manufacturing Co., Ltd. Bank of Kaohsiung, Ltd. Domestic listed stocks in emerging market Grand Green Energy Co., Ltd. Domestic unlisted stocks The Reputation International Construction Co., Ltd. M Radio Broadcasting Co., Ltd. Widedoctor (International) Enterprise Co., Ltd. Chia Ya Investment Co., Ltd. New Image Medical Co., Ltd. Chang Hong Energy Technology Co., Ltd. J-Metrics Technology Co., Ltd. Linkou Recreation Co., Ltd. Horseshoe International Enterprise Co., Ltd. Total	December 31, 2021 $ - 2,910 22,500 - 4,292 2,998 87,530 31,520 19,435 9,498 1,127 127,559 $ 309,369	December 31, 2020
		22,790 - 17,850 181,689 4,191 4,255 87,596 24,704 26,556 20,170 14,425 75,468
		479,694

(i) The Group holds these equity instruments as long term strategic instrument instead of trading purpose, and are accounted for under fair value through other comprehensive income.

• (ii) During the years ended December 31, 2021 and 2020, the dividends related to equity investments at fair value through other comprehensive income held on the years then ended, were recognized, please refer to Note 6(t).

(iii) Due to operational considerations, the Group sold the equity instrument investments listed above that were designated as fair value through other comprehensive gains and losses during 2021 and 2020. The sales situation is as follows:

Stock name	Date of sale	Fair value $ 104,065 36,966 $ 141,031	Cumulative disposal gains and losses
For the Year Ended December 31, 2021 The Reputation International Construction Co., Ltd. Taiwan Semiconductor Manufacturing Co., Ltd.	2021.11.18 2021.11.12		61,492 9,509
			71,001

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Stock name	Sale date	Fair value $ 85,000	Cumulative disposal gains and losses
For the Year Ended December 31, 2020 J&V Energy Technology Co., Ltd.	2020.06.30		(15,000)

The Group has transferred cumulative disposal gains from other equity interest to retained earnings.

(iv) Please refer to Note 6(u) for credit risk and market risk.

(d) Notes and accounts receivable

Note receivables from operating activities Trade receivables measured as amortized cost Less: Loss allowance Total	December 31, 2021 $ 326,143 935,639 (396) $ 1,261,386	December 31, 2020 313,159 425,076 (26) 738,209

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables. To measure the expected credit losses, notes and accounts receivables have been grouped based on shared credit risk characteristics and the days past due, as well as incorporated forward looking information.

The Group�s notes and accounts receivable arose from mediation and litigation the construction segment entered into are detailed as follows:

The amount of mediation or litigation Less: Expected loss (Note) Total	December 31, 2021 $ 159,115 (53,200) $ 105,915	December 31, 2020 73,434 (28,054) 45,380

Note: Losses that may occur were assessed based on mediation or litigation in each case, deemed as changes in the estimated contract price, and recognized as a deduction from operating revenue. Please refer to Note 9 for details.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The loss allowance provisions of other receivables were determined as follows:

Current Less than 60 days past due (Note) 60 to 180 days past due 180 to 360 days past due Over 360 days past due Current Less than 60 days past due (Note) 60 to 180 days past due 180 to 360 days past due Over 360 days past due	December 31, 2021	December 31, 2021
	Carrying amount of notes and accounts receivable Weighted- average loss rate 1,129,590 0% 25,558 0% 197 0%~3% - 5% 522 100% $ 1,155,867 December 31, 2020		Loss allowance Provision
			- - - - 396
			396
	Carrying amount of notes and accounts receivable 676,657 15,563 91 544 - $ 692,855	Weighted- average loss rate 0% 0% 0%~3% 5% 100%	Loss allowance Provision
			- - 3 23 -
			26

Note: The amount has been recovered before the date of presentation of the consolidated financial report.

The movements in the allowance for notes and account receivables for 2021 and 2020 were as follows:

Beginning balance Impairment losses Ending balance	For the Years Ended December 31	For the Years Ended December 31
	2021 $ 26 370 $ 396	2020
		26 -
		26

As of December 31, 2021 and 2020, the Group didn�t provide any receivables as collateral for its borrowings.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(e) Inventory

December 31, 2021 Land held for construction site $ 1,348,483 Building and columbarium construction in progress 1,532,319 Properties and land held for sale 14,683 Cemetery plots and columbarium niches for sale 699,459 Prepayment for land and building 265,283 Less: Allowance for obsolete inventory (4,151) $ 3,856,076 Inventory expected to be recovered exceeds twelve months $ 3,554,595 (i) The details of the cost of goods sales for 2021 and 2020 were as follows:

December 31, 2020 1,470,011 1,476,307 15,727 694,620 244,248 (4,151) 3,896,762 3,856,593

Inventory that has been sold Construction cost Recreation cost Rent cost Funeral service cost	For the Years Ended December 31 2021 2020 $ 4,704 34,540 10,452,250 9,863,652 90,551 42,997 15,196 11,865 52,983 43,597 $ 10,615,684 9,996,651	For the Years Ended December 31 2021 2020 $ 4,704 34,540 10,452,250 9,863,652 90,551 42,997 15,196 11,865 52,983 43,597 $ 10,615,684 9,996,651
		2020
		34,540 9,863,652 42,997 11,865 43,597
		9,996,651

(ii) In April and July 2020, the Group acquired shares of San Jhih Tzu An Yuan Ltd., as well as 103 pieces of burial land located at Xinzhuangzi and Guizishan, Sanzhi Dist., New Taipei City and 2 buildings thereon, with an additional clause to agreement that the Group shall fulfill its obligation to manage the 91 pieces of burial land without superficies. The contract consideration amounted to $525,771 thousand (including directly attributable costs), and the acquisition price of aforementioned assets and liabilities were determined as follows:

Long term equity investment	$	19
Cemetery plots and columbarium niches held for sale		443,643
Property, plant and equipment �land		198,888
Property, plant and equipment �building		5,039
Provisions (incloud current and non-current portion)		(121,818)
	$	525,771

(iii) The subsidiary possessed the land located at Xinweiling, Nantou City, in its individual name, and the land has been mortgaged to the subsidiary.

• (iv) Details on inventory the Group had been pledged as collateral as of December 31, 2021 and 2020, please refer to Note 8.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (f) Investments accounted for using equity method

The Group�s investments accounted for using the equity method at reporting date were as follows:

Rei Jhao Engineer Ltd. Rei Ying Construction Co, Ltd. Sky Honor International Co.,Ltd. Taisun Enterprise Co., Ltd.	December 31, 2021 $ 1,008 1,753 10,677 4,349,563 $ 4,363,001	December 31, 2020
		1,064 2,765 - -
		3,829

• (i) In order to expand the business, the board of directors of the Group decided to jointly invest with Zhaoxin Co., Ltd. to establish Sky Honor International Co., Ltd. on June 28, 2021.

• (ii) The Group obtain two seats in Taisun�s Board of Directors on December 16, 2021, Therefore, the Group will have a significant influence on Taisun. After re-assessing the fair value of the shareholding percentage of 31.97%, amounting to $4,331,339 thousand, held by the Group in Taisun, the financial assets at fair value through profit or loss were reclassified to investments accounted for using equity method, and the benefits measured at fair value have been recognized as net income of financial assets measured at fair value through profit or loss under other gains and losses. Subsequently, the Group continued to acquire the shareholding percentage of 32.1%, amounting to $18,224 thousand, in the open market on December 31, 2021.

• (iii) Associates

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

Name of Associates	Nature of Relationship with the Group	Main operating location/ Registered Country of the Company	Proportion of shareholding and voting rights
			December 31, 2021 December 31, 2020 % 32.1 Note
Taisun Enterprise Co., Ltd.	Processing and retailing of food, beverages	Taiwan

Note: Associates which have significant influence since December 16,2021.

The fair value of associates listed on the Stock Exchange (over the counter) which are material to the Group are as follows:

Taisun Enterprise Co., Ltd.	December 31, 2021
	$ 4,381,568

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

• 1) Taisun Enterprise Co., Ltd.

Current assets Non current assets Current liabilities Non current liabilities Net assets Net assets attributable to non-controlling interests Net assets attributable to owners of parent Operating revenue Profit from continuing operations Other comprehensive income Total comprehensive income Comprehensive income (loss) attributable to non-controlling interests Comprehensive income (loss) attributable to owners of parent Share of net assets of associates as of January 1 Comprehensive income attributable to the Group Share of net assets received from associates Share of net assets of associates as of December 31 Add: Goodwill Carrying amount of interests of associates as of December 31

The fair values of the above assets and liabilities were determined on a tentative basis, and the final evaluation of these assets and liabilities has yet to be completed. The Group continues to review the above matters during the measurement period. If, within one year from the date of acquisition, new information relating to the facts and circumstances that existed at the date of acquisition can be identified, the adjustments to the above provisional amounts or any additional provision for liabilities at the date of acquisition, as well as the accounting of the acquired affiliate, will be revised.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iv) Aggregated Financial Information- Individually insignificant associates

The Group�s financial information for investments accounted for using the equity method that are individually insignificant was as follows:

Carrying amount of individually insignificant associates� equity as of December 31 Attributable to the Group: Profit (loss) from continuing operations Other comprehensive (loss) income Comprehensive income	December 31, 2021 December 31, 2020 $ 13,438 3,829 For the Years Ended December 31 2021 2020 $ (3,890) (1,221) - - $ (3,890) (1,221)
	2021 $ (3,890) - $ (3,890)

• (v) Guarantees

As of December 31, 2021 and 2020, the Group provides investment accounted for using equity method as collaterals for its loans, please refer to note 8.

(g) Business combination

• (i) Acquisition of subsidiary - Gold Coast Golf Co., Ltd. (Originally known as �North Bay Recreation Co., Ltd.�)

On July 22, 2020, the Group obtained control over the company after acquiring 67% of the shareholdings in Gold Coast Golf Co., Ltd., a company that provides sports facility.

The major categories of considerations transferred, assets acquired, liabilities and goodwill assumed on the acquisition date were as follows:

• 1) The following table summarizes the acquisition date fair value of major class of consideration transferred.

consideration transferred.
Cash	$	315,206
Identifiable assets acquired and liabilities assumed
The following table summarizes the carrying amount of identifiable assets		acquired an
liabilities assumed recognized on the acquisition date:
Cash and cash equivalents	$	11,290
Accounts receivables		1,425
Other current assets		953
Non-current financial assets at amortized cost		484
Property, plan and equipment		3,245,320

• 2) Identifiable assets acquired and liabilities assumed

The following table summarizes the carrying amount of identifiable assets acquired and liabilities assumed recognized on the acquisition date:

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	Investment property			176,624
	Deferred tax assets			1,301
	Other non-current financial assets			2,611
	Other non-current assets			27,533
	Short-term notes and bills payable			(409,800)
	Contract liabilities			(7,024)
	Notes payables			(3,300)
	Accounts payables			(231)
	Other payables			(6,641)
	Other current liabilities			(25,123)
	Long-term borrowings			(3,653)
	Deferred tax liabilities			(559,137)
	Guarantee deposits received			(1,988,074)
	Fair value of net identifiable assets and liabilities	$		464,558
3)	Goodwill
	Goodwill arising from the acquisition has been recognized as follows:
	Consideration transferred		$	315,206
	Less: Fair value of identifiable assets (measured at percentage of			311,253
	ownership)
	Goodwill		$	3,953

On August 24 and November 30, 2020, the Group acquired 2,158 thousand shares to non related parties for capital increase by cash of $55,392 thousand, and 7,392 thousand shares for capital increase by cash of $73,913 thousand, increasing the cumulative shareholdings of the Group to 82.13%. As a result of changes in percentage of ownership, the capital surplus balance of $16,957 thousand was recognized.

The purchase price allocation report on the subsidiary acquired was based on the valuation by an independent evaluator who has certified professional qualification and related valuation experience in the subject being evaluated.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(h) Property, plant and equipment

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

Cost or deemed cost: Balance on January 1, 2021 Additions Transferred to inventory Disposal Transferred from prepayment Effect of movements in exchange rates Balance on December 31, 2021 Balance on January 1, 2020 Additions Acquisition through business combination Transferred from prepayment Transferred from investment property Disposal Impairment Effect of movements in exchange rates Balance on December 31, 2020 Depreciation and impairments loss: Balance on January 1, 2021 Depreciation for the year Transferred to inventory Disposal Effect of movements in exchange rates Balance on December 31, 2021 Balance on January 1, 2020 Depreciation for the year Acquisition through business combination Transferred from investment property Disposal Effect of movements in exchange rates Balance on December 31, 2020 Carrying amounts: Balance on December 31, 2021 Balance on December 31, 2020 Balance on January 1, 2020	Land		Buildings	Transportation equipment 3,888 6,316 - (5,935) - - 4,269 3,123 - 900 - - (135) - - 3,888 3,115 420 - (75) - 3,460 2,385 277 566 - (113) - 3,115 809 773 738	Office equipment 40,105 2,397 - - - (26) 42,476 24,265 1,432 14,612 - - (262) - 58 40,105 31,884 3,015 - - (24) 34,875 18,395 1,820 11,836 - (218) 51 31,884 7,601 8,221 5,870	Golf course and equipment 41,300 1,294 - (110) - - 42,484 - 550 49,339 - - (8,589) - - 41,300 34,819 1,507 - (92) - 36,234 - 869 41,092 - (7,142) - 34,819 6,250 6,481 -	Other equipment 55,062 39,440 - - - - 94,502 51,029 5,852 - - - (1,819) - - 55,062 37,493 6,647 - - - 44,140 35,631 3,681 - - (1,819) - 37,493 50,362 17,569 15,398	Construction in progress - 5,453 - - - - 5,453 - - 7,312 - - - (7,312) - - - - - - - - - - - - - - - 5,453 - -	Total 6,318,279 121,662 (4,839) (6,045) 12,578 (26)
			1,000,811 16,281 (2,598) - - - 1,014,494 80,819 51,257 846,217 - 23,146 (628) - - 1,000,811 744,225 14,308 (1,179) - - 757,354 17,935 8,563 705,881 12,110 (264) - 744,225 257,140 256,586 62,884
									6,441,609 279,195 1,683,117 4,004,695 328,479 42,025 (11,978) (7,312) 58
									6,318,279 851,536 25,897 (1,179) (167) (24)
									876,063 74,346 15,210 759,375 12,110 (9,556) 51
									851,536 5,565,546 5,466,743 204,849

(i) The subsidiary possesses in its individual name the land located at Xiajiao, Shihmen District, New Taipei City, for which asset preservation measures have been taken.

• (ii) For details on property, plant and equipment, the Group had been pledged as collateral as of December 31, 2021 and 2020, please refer to Note 8.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Investment Property

Investment property comprises proprietary assets of the Group. The original non-cancellable periods of the leased investment property ranges from one to three years, and some leases include an option to renew the lease for an additional period of the same duration at the end of the contract term.

The rental income of all leased investment properties is in fixed amounts.

The movements in investment property of the Group for 2021 and 2020 were as follows:

Land and improvements Cost: Balance on January 1, 2021 $ 881,919 Addition 580,598 Disposal (110,432) Transferred from inventory 101,110 Transferred from prepayment 193,435 Transferred to non-current assets held for sale (56,248) Balance on December 31, 2021 $ 1,590,382 Balance on January 1, 2020 $ 548,002 Addition 247,485 Acquisition through business combination 176,624 Disposals (71,313) Transferred to property, plant and equipment (18,879) Balance on December 31, 2020 $ 881,919 Accumulated depreciation and impairment losses: Balance on January 1, 2021 $ 85,491 Depreciation for the year - Disposals (26,665) Transferred to non-current assets held for sale - Balance on December 31, 2021 $ 58,826 Balance on January 1, 2020 $ 85,491 Depreciation for the year - Disposals - Transferred to non-current assets held for sale - Balance on December 31, 2020 $ 85,491	Buildings 438,433 107,678 (185,444) 3,705 36,845 (25,931) 375,286 445,933 48,582 - (32,936) (23,146) 438,433 185,095 9,061 (104,660) (1,757) 87,739 189,780 8,912 (1,487) (12,110) 185,095	Total 1,320,352 688,276 (295,876) 104,815 230,280 (82,179) 1,965,668 993,935 296,067 176,624 (104,249) (42,025) 1,320,352 270,586 9,061 (131,325) (1,757) 146,565 275,271 8,912 (1,487) (12,110) 270,586

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Carrying amounts: Balance on December 31, 2021 Balance on December 31, 2020 Balance on January 1, 2020 Fair value: Balance on December 31, 2021 Balance on December 31, 2020	Land and improvements $ 1,531,556 $ 796,428 $ 462,511	Buildings Total 287,547 1,819,103 253,338 1,049,766 256,153 718,664 $ 2,197,524 $ 1,315,575	Total
			1,819,103 1,049,766
			718,664

• (i) Investment property comprises a number of commercial properties that are leased to third parties. Each of the leases contains an initial non-cancellable period that runs from 1 to 5 years. Subsequent renewals are negotiated with the lessee and no contingent rents are charged.

• (ii) At the end of 2021, the Group decided to dispose of some investment properties, and completed the contract on February 10, 2022. The investment properties were accordingly presented as non-current assets held for sale, and there was no indication of significant impairment when measured at the lower with book value and net realizable value. In addition, the disposal benefits of $13,593 thousand arising from the disposal of investment properties by the Group in 2021 were presented under " other gains and losses ".

• (iii) Fair value of investment properties was determined based on the market price of a similar item in the vicinity as well as the valuation of an independent appraiser (who had a recognized and relevant professional qualification, and recent experience in valuating similar items to the investment property being valued in location and type). The inputs used in the fair value valuation technique were market values classified as Level 3.

• (iv) As of December 31, 2021 and 2020, a portion of the Group�s investment property was pledged as collateral for bank loans; please refer to Note 8.

• (j) Short-term borrowings

The details of short term borrowings were as follows:

Unsecured bank loans Secured bank loans Total Unused credit lines Range of interest rates	December 31, 2021 $ 960,240 3,111,616 $ 4,071,856 $ 1,094,882 1.35%~2.8%	December 31, 2020
		431,501 3,446,681 3,878,182 2,185,825 1.31%~2.5%

For the collateral for bank loans, please refer to Note 8.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(k) Short-term notes and bills payable

The details of the Group�s short term notes and bills payable were as follows:

	December 31, 2021	December 31, 2021
	Guarantee or	Range of
	acceptance institution	interest rates		Amount
Commercial paper payable	Shanghai Commercial &	1.24%~1.32%	$	500,000
	Savings Bank
	Mega bills	2.29%		382,000
	Union Bank of Taiwan	1.5%		100,000
				982,000
Less: Discount on short-term notes				(424)
and bills payable
Total			$	981,576
	December 31, 2020
	Guarantee or	Range of
	acceptance institution	interest rates		Amount
Commercial paper payable	Union Bank of Taiwan	0.71%~1.32%	$	200,000
	Mega bills	1.2%		382,000
				582,000
Less: Discount on short-term notes				(1,026)
and bills payable
Total			$	580,974

The Group has pledged its assets as collateral for short term notes and bills payable, please refer to Note 8.

(l) Long-term borrowings

The Group�s long-term borrowings details, conditions and provisions were as follows:

Currency Secured loans TWD Less: Issuance cost on syndicated loan Less: current portion Total Unused credit lines		December 31, 2021 Range of interest rates Matured date Amount 1.60%~2.75% From August 2022 to July 2028 $ 1,583,909 (3,780) (240,775) $ 1,339,354 $ 1,090,200
	Currency	Range of interest rates
		1.60%~2.75%

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Currency Secured loans TWD Less: Issuance cost on syndicated loan Less: current portion Total Unused credit lines		December 31, 2020 Range of interest rates Matured date Amount 1.91%~2.75% From August 2022 to November 2024 $ 337,719 (6,300) (50,109) $ 281,310 $ 735,000
	Currency	Range of interest rates
		1.91%~2.75%

• (i) For the collateral for long term borrowings, please refer to Note 8.

• (ii) On June 27, 2018, the subsidiary entered into a syndicated loan agreement amounting to $2,100,000 thousand with Yuanta Bank and six other banks, and the term of loan was five years. Land and buildings of the subsidiary were as collateral for the aforementioned joint loan. Pursuant to the covenant of the loan agreement, on May 18, 2020, the subsidiary transferred 24,000 thousand ordinary shares of Long Bon International Co., Ltd. into its securities depository account as well as signed and submitted to the financial institution the application form for book entry securities�, a pledge, and document pertaining to the exercise of pledge. Besides, a deposit of $60,000 thousand, which could not be counted in the minimum balance, was required for the reserve account specified in the loan agreement. The agreed financial ratios of subsidiaries set out in the syndicated loan agreement were as follows:

• 1) Current ratio (Current assets/Current liabilities): Not less than 100%.

• 2) Debt ratio of financial institution (total borrowings of financial institution/tangible net worth): Shall not exceed 150%.

• 3) Interest coverage ratio (Profit before tax + interest expenses + amortization and depreciation)/ interest expenses : Not lower than four times.

• 4) Tangible net assets value (shareholders' equity intangible assets): shall not be less than NT$800 million.

(m) Bonds payable

• (i) The details of secured bonds issued by the Group were as follows:

Secured corporate bonds Unamortized discounted corporate bonds payable Corporate bonds issued balance at year end	December 31, 2021 $ - - $ -	December 31, 2020 2,500,000 (30,270) 2,469,730

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (ii) As of December 31, 2020, the key terms and conditions of the outstanding bonds issued by the Group were as follows:

Item Total Amount Issue Date Coupon rate Issue Period LC Bank Entrusted Bank Redemption at Maturity	1st secured convertible bonds issued in 2017
	$2,500,000 thousand September 12,2017 1.02% September 12, 2017 ~ September 12, 2022 Taiwan Cooperative Bank, Ltd. Jih Sun International Bank, Ltd. The Company can repay the principal once the Company's bonds expire five years from the issuance date.

• (iii) The Group called back 2,500 secured corporate bonds in advance in 2011, with a face value of $2,500,000 thousand, and recognized the loss of $28,772 thousand and accounted for other gains and losses.

(iv) For the collateral for bonds payable, please refer to Note 8.

(n) Operating lease

The Group leases out its investment property. The Group has classified these leases as operating leases, because it does not transfer substantially all of the risks and rewards incidental to the ownership of the underlying assets. Please refer to note 6(i) �Investment property� for details.

A maturity analysis of lease payments, showing the undiscounted lease payments to be received after the reporting date was as follows:

Less than one year 1 to 2 years 2 to 3 years 3 to 4 years 4 to 5 years Over five years	December 31, 2021 $ 23,747 17,007 15,200 12,655 9,162 3,810 $ 81,581	December 31, 2020
		16,310 13,146 11,237 9,915 7,176 10,547
		68,331

The rent revenues and related operating costs arised from investment property in 2021 and 2020, please refer to Note 6(e) and (r).

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(o) Income tax

(i) Income tax expense

The amounts of income tax expense for 2021 and 2020 were as follows:

Current income tax expense Land value increment tax Undistributed earnings additional tax Adjustment for prior years Deferred tax expense Origination and reversal of temporary differences Income tax expense	For the Years Ended December 31 2021 2020 $ 62,320 142,549 1,224 606 36,849 50,948 (245) (25,927) 100,148 168,176 12,950 (64,993) $ 113,098 103,183

The amount of income tax gains (expense) recognized in other comprehensive income for 2021 and 2020 were as follows:

and 2020 were as follows:
	For the Years	Ended	December	31
	2021		2020
Items that may be reclassified subsequently to profit or loss:
Exchange differences on translation of foreign	$	4		(27)
financial statements

Reconciliation of income tax and profit before tax for 2021 and 2020 is were follows.

	For	the Years Ended	December 31
		2021	2020
Profit before income tax	$	1,023,510	1,231,520
Income tax using the Company�s domestic tax rate	$	315,061	336,421
Effect of investment gain recognized using equity method		(111,799)	(94,140)
Valuation loss on financial assets		(50,616)	(26,555)
Suspended levy of securities transaction income tax		(46,167)	(122,515)
Non-deductible expenses		10,866	6,672
Non-taxable income from land transactions		220	(1,569)
Dividend income		(39,956)	(26,694)
Land value increment tax		1,224	606
Undistributed earnings additional tax		36,849	50,948
Change in unrecognized temporary differences		(12,473)	(917)
Movements in tax losses on unrecognized deferred tax		10,623	8,810
assets
Adjustment for prior years		(245)	(25,927)
Others		(489)	(1,957)
Income tax expense	$	113,098	103,183

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (ii) Deferred tax assets and liabilities

• 1) Unrecognized deferred tax liabilities

The Group�s unrecognized deferred tax liabilities are detailed as follows:

Book tax difference of management fee income

December 31, 2021 $ 692	December 31, 2020
	737

• 2) Unrecognized deferred tax assets

The Group�s unrecognized deferred income tax assets were composed of the following items:

Deductible temporary differences Unrealized project expenses Book tax difference of provision The carryforward of unused tax losses	December 31, 2021 $ 49,198 145 23,598 10,964 $ 83,905	December 31, 2020
		61,953 1,202 23,985 42,399
		129,539

The R.O.C. Income Tax Act allows net losses, as assessed by the tax authorities, to offset taxable income over a period of ten years for local tax reporting purposes. The temporary difference associated with the net losses was not recognized as deferred tax assets as the Group is not expected to have sufficient taxable income to offset against temporary difference in the foreseeable future.

As of December 31, 2021, the net losses that have not been recognized as deferred tax assets and the expiration years were as follows:

Year of loss 2012 2018 2019 2020 2021	Unused tax loss Expiry year $ 3,006 2022 633 2028 3,644 2029 36,087 2030 11,448 2031 $ 54,818

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

3) Recognized deferred tax assets and liabilities

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

Capitalized interest Deferred tax liabilities: Balance on January 1, 2021 $ 370 Debit (credit) on income statement 664 Balance on December 31, 2021 $ 1,034 Balance on January 1, 2020 216 Effect of acquisition through business combination - Debit (credit) on income statement 154 Balance on December 31, 2020 $ 370	Land value increment 496,585 (1,034) 495,551 - 559,137 (62,552) 496,585	Total 496,955 (370) 496,585 216 559,137 (62,398) 496,955

Deferred tax assets: Balance on January 1, 2021 (Debit) Credit on income statement (Debit) Credit on other comprehensive income Balance on December 31, 2021 Balance on January 1, 2020 Effect of acquisition through combination (Debit) Credit on income statement (Debit) Credit on other comprehensive income Balance on December 31, 2020	Unrealized project expenses costs and losses		Effect of investments accounted for using equity method		Book tax difference at taxation time		Loss deduction		Other 23,958 (3,408) 4 20,554 19,898 54 4,033 (27) 23,958	Total 107,011 (13,320) 4 93,695 103,142 1,301 2,595 (27) 107,011

(iii) Assessment by tax authorities

• 1) The Company�s income tax return for the year 2018 have been approved by the R.O.C. tax authorities.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) The Company�s other R.O.C. subsidiaries� income tax return for the following years have been approved by the tax authorities:

Approval year	Company Name
2019	Everwin Investment Co, Ltd.
2019	Long Bao Co., Ltd.
2019	Rei Ju Construction Co., Ltd.
2019	ReiYu Green Energy Technology Co., Ltd.
2019	Rei Cheng Construction Co., Ltd.
2019	Sheng Ji Interior Decoration Co., Ltd.
2019	ReBio Green Innovation Co., Ltd.
2019	Ryan Development Corp.
2019	San Jhih Cih An Yuan Ltd.
2019	Gold Coast Golf Co., Ltd.
2020	Long Fu Real Estate Development Co., Ltd.

(p) Capital and other equity

As of both December 31, 2021 and 2020, the Company�s authorized share capital amounted to $7,200,000 thousand, divided into 720,000 thousand shares, with a par value of $10 per share. The paid in capital was $3,947,293 thousand. All issued shares were paid up upon issuance.

Reconciliation of shares outstanding for the years end December 31, 2021 and 2020 were as follows:

(Expressed in thousands of shares)

	(Expressed in thousands of shares)
Balance on January 1 Retirement of treasury share Balance on December 31	Ordinary Shares 2021 2020 394,729 404,729 - (10,000) 394,729 394,729
	2021 394,729 - 394,729

(i) Capital surplus

The components of capital surplus were as follows:

Premium on convertible bond Treasury share transactions Produced by long-term equity investment	December 31, 2021 $ 15,731 11,440 147,301 $ 174,472	December 31, 2020 15,731 11,440 119,462
		146,633

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

According to the R.O.C. Company Act, capital surplus can only be used to offset a deficit, and only the realized capital surplus can be used to increase the common stock or be distributed as cash dividends. Capital surplus included the income was derived from the issuance of new shares at a premium and income from the endowments received by the Company. In accordance with the Regulations Governing the Offering and Issuance of Securities by Securities Issuers, the amount of capital reserves to be reclassified under share capital shall not exceed 10 percent of the actual share capital amount.

(ii) Retained earnings

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

The Company�s dividend policy was stipulated by the Board of Directors based on its operating and investment plans, capital budget, and changes in internal and external environment. As the Company is currently in its growing phase, retained earnings must be used to finance its operating growth and investment needs, it has adopted a residual dividend policy with the balance of dividends taken into consideration, wherein the cash dividends shall be no less than 10 percent of the total dividends.

1) Legal reserve

If the Company has no deficit and the legal reserve has exceeded 25% of the Company�s paid in capital, the excess may, pursuant to a resolution reached at a shareholders� meeting, be transferred to capital or distributed in cash.

2) Special reserve

A special reserve equal to the contra account of other shareholders� equity is appropriated from current and prior period earnings. When the debit balance of any of the contra accounts in the shareholders� equity is reversed, the related special reserve can be reversed. Amounts of subsequent reversals pertaining to the net reduction of other shareholders� equity shall qualify for additional distributions.

A special reserve shall be retained at an amount equal to the proportionate share of the carrying value of the treasury stock held by subsidiaries in excess of the market value at the reporting date. The special reserve may be reversed when the market value recovers in subsequent periods.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 3) Earnings distribution

The Company, pursuant to the resolution reached in shareholder� meeting held on August 20, 2021 and June 18, 2020 , did not appropriate the earnings for 2020 and 2019.

• (iii) Treasury stock

• 1) In the second quarter of 2021, the Group in accordance with the newly promulgated interpretations by the Accounting Research and Development Foundation, stipulated that when the parent company prepares the consolidated financial statements, the parent company stock held by the subsidiary shall be recognized as treasury share according to the shareholding ratio of the subsidiary, and the remainder is deducted from noncontrolling interests in the consolidated balance sheet. In accordance with International Accounting Standard 8 Accounting Policies, Changes in Accounting Estimates and Errors (�IAS 8�), the changes in accounting policy shall be applied retrospectively.

• 2) The Company�s treasury shares, held by Rei Ju Construction Co., Ltd., a subsidiary as of December 31, 2021 and 2020, were as followed:

			December 31,
		December 31,	2020
		2021	(Adjusted)
Shares held by subsidiaries (thousands) Acquisition cost Stock market price Amount of treasury shares- attributable to owners	$ $ $	36,609 689,461 647,972 614,333	36,609 689,461 525,333 614,333
of parent

• 3) Pursuant to the requirements under section 28(2) of the Securities and Exchange Act, the Company repurchased 10,000 thousand treasury shares at the cost of $129,788 thousand, in order to protect its credit and shareholders' equity. Pursuant to Order No. 1090344919 issued by the FSC on May 25, 2020, the Company reported a repurchase of its own shares. Subsequent to that, the Company, according to a resolution made in a meeting of Board of Directors, retired 10,000 thousand treasury shares on June 19, 2020, which was recorded as the date of retirement. Consequently, the Company recognized a decrease of $100,000 thousand in ordinary shares, $398 thousand in capital surplus, and $29,390 thousand in undistributed earnings.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iv) Other equity

Balance on January 1, 2021 Exchange differences on translation of net assets of foreign operations Disposal of investments in equity instruments at fair value through other comprehensive income Unrealized gains (losses) on financial assets measured at fair value through other comprehensive income Difference between consideration and carrying amount of the equity interests in subsidiaries acquired Profit attributable to non-controlling interests Cash dividends paid to NCIs by the subsidiary Balance on December 31, 2021 Balance on January 1, 2020 Effects of retrospective application Balance on January 1, 2020 after adjustments Exchange differences on translation of net assets of foreign operations Disposal of investments in equity instruments at fair value through other comprehensive income Loss of control�subsidiary Unrealized gain (loss) on financial assets measured at fair value through other comprehensive income Difference between consideration and carrying amount of the equity interests in subsidiaries acquired Profit attributable to non-controlling interests Cash dividends paid to NCIs by the subsidiary Acquisition through business combination Changes in ownership interests in a subsidiary Gains (losses) on remeasurements of defined benefit plans Increase in non-controlling interests Balance on December 31, 2020	Exchange differences on translation of foreign financial statements $ 14,473 (537) - - - - - $ 13,936 $ 14,712 - 14,712 (239) - - - - - - - - - - $ 14,473	Unrealized gains (losses) from financial assets measured at fair value through other comprehensi ve income (40,549) - (70,060) (77,686) - - - (188,295) (85,507) - (85,507) - 15,000 - 29,958 - - - - - - - (40,549)	Non- controlling interests (Adjusted) 204,978 (21) 941 (511) (97,839) 24,028 (25,987) 105,589 267,967 (67,502) 200,465 17 - (1,610) 991 (164,334) 27,700 (12,182) 153,305 (16,957) (5) 17,588 204,978	Total 178,902 (558) (69,119) (78,197) (97,839) 24,028 (25,987)
				(68,770) 197,172 (67,502)
				129,670 (222) 15,000 (1,610) 30,949 (164,334) 27,700 (12,182) 153,305 (16,957) (5) 17,588
				178,902

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(q) Earnings per share

• (i) Basic earnings per share

The following table sets out the Group�s basic earnings per share calculated based on the profit attributable to the Company�s ordinary equity holders and the weighted average number of ordinary shares outstanding:

• 1) Profit attributable to ordinary shareholders of the Company

For the Years Ended December 31 2021 2020 Profit attributable to the Company $ 886,384 1,100,637 Weighted average number of ordinary shares outstanding For the Years Ended December 31 2021 2020 (Adjusted) Weighted-average number of ordinary shares outstanding 394,729 404,729 Effect of treasury shares (32,985) (40,690) Weighted average number of ordinary shares on 31 December 361,744 364,039 Earnings per share $ 2.45 3.02	For the Years Ended December 31 2021 2020	For the Years Ended December 31 2021 2020	For the Years Ended December 31 2021 2020
	2021
		2021
	394,729 (32,985) 361,744 $ 2.45		404,729 (40,690) 364,039 3.02

• 2) Weighted average number of ordinary shares outstanding

• (ii) Diluted earnings per share

The calculation of the Group�s diluted earnings per share based on the profit attributable to the Company�s ordinary equity holders and the weighted average number of ordinary shares outstanding after adjustment for the effects of all dilutive potential ordinary shares is as follows:

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

Profit attributable to ordinary shareholders of the	Company (diluted)
	For the Years Ended	December 31
	2021	2020
Profit attributable to ordinary shareholders of the	$ 886,384	1,100,637
Company (diluted)
Weighted average number of ordinary shares (diluted)
	For the Years Ended	December 31
	2021	2020
Weighted average number of ordinary shares	361,744	364,039
(basic)
Employee share bonus	705	991
Weighted average number of ordinary shares	362,449	365,030
(diluted) on December 31
Diluted earnings per share	$ 2.45	3.02

• 2) Weighted average number of ordinary shares (diluted)

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(r) Revenue from contracts with customers

(i) Disaggregation of revenue

Primary geographical markets: Taiwan Mainland China Major products: Rental revenue (Note) Real estate revenue Revenue from sale of burial ground and columbarium niches Construction revenue Recreation revenue Primary geographical markets: Taiwan Mainland China Major products: Rent revenue (Note) Revenue from sale of burial ground and columbarium niches Funeral services revenue Construction revenue Recreation revenue	For the Year Ended December 31, 2021	For the Year Ended December 31, 2021	For the Year Ended December 31, 2021	For the Year Ended December 31, 2021	Total 11,415,281 10,343 11,425,624 50,505 31,347 160,339 11,002,364 181,069
	Property development Funeral services Construction engineering Recreation $ 74,163 165,859 10,988,105 187,154 - - 10,343 - $ 74,163 165,859 10,998,448 187,154 $ 42,816 - 1,604 6,085 31,347 - - - - 160,339 - - - 5,520 10,996,844 - - - - 181,069 $ 74,163 165,859 10,998,448 187,154 For the Year Ended December 31, 2020
					11,425,624 Total 10,766,949 9,375 10,776,324 22,808 119,598 27,559 10,524,742 81,617 10,776,324
	Property development $ 18,837 - $ 18,837 $ 18,837 - - - - $ 18,837	Funeral services 148,038 - 148,038 - 119,598 27,559 881 - 148,038	Construction engineering 10,516,686 9,375 10,526,061 2,200 - - 10,523,861 - 10,526,061	Recreation 83,388 - 83,388 1,771 - - - 81,617 83,388

Note: The Group recognized rental revenue from investment property for 2020 and 2019 according to IFRS 16.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Contract balances

Notes and accounts receivable Less: loss allowance Total Receivables expected to be recovered more than 12 months Contract assets-project investment not up to the right to receive payment Contract assets-retention in construction Total Receivables expected to be recovered more than 12 months Current contract liabilities advance revenue from management fee Current contract liabilities the excess of payment received over construction revenue Current contract liabilities advance revenue from real estate Current contract liabilities advance sales receipts Non-current contract liabilities advance revenue from management fee Non-current contract liabilities advance sales receipts Total Payables that are expected to be settled more than 12 months	December 31, 2021 $ 1,261,782 (396) $ 1,261,386 $ 144,295 $ 2,335,000 929,391 $ 3,264,391 $ 49,056 $ 2,507 327,900 237,249 13,190 38,474 28,767 $ 648,087 $ 379,553	December 31, 2020 738,235 (26) 738,209 - 1,963,885 871,218 2,835,103 59,778 2,950 500,780 123,123 6,027 27,111 4,990 664,981 447,280	January 1, 2020 1,245,067 (26) 1,245,041 - 2,146,929 822,289 2,969,218 20,694 2,742 718,348 - - 18,539 - 739,629 537,300

For details on notes and accounts receivable, contract assets and allowance for impairment, please refer to note 6(d), (u) and 9.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The major changes in contract assets and contract liabilities mainly stemmed from the difference between the respective timings of obligation performance, including transferring of merchandise or rendering of service, and the payment. The following table sets out the changes in transaction price estimates resulted from the contract assets of the construction segment that entered into mediation or litigation:

The amount of mediation or litigation Less: expected loss (Note) Total	December 31, 2021 $ - - $ -	December 31, 2020 245,380 (42,746) 202,634

Note: Losses that may occur were assessed based on mediation or litigation in each case, deemed as changes in the estimated contract price, and were recognized as a deduction from operating revenue. Please refer to Note 9 for details.

(s) Remuneration to employees and directors

The Company�s Articles of Incorporation stipulate that if the Company nets a profit for the year, then a minimum of 1% shall be allocated as employee compensation and a maximum of 3.5% shall be allocated as directors� remuneration. However, if the Company has accumulated deficits, the profit should be reserved to offset the deficit. The recipients of shares and cash may include the employees of the Company�s affiliated companies who meet certain conditions.

The Company estimated its remuneration to employees at $9,394 thousand and $11,563 thousand for 2021 and 2020, respectively; the Company also estimated its remuneration to directors at $32,881 thousand and $40,471 thousand for 2021 and 2020, respectively. The estimated amounts mentioned above were based on the profit before tax of each respective ending period, multiplied by the percentage of the remuneration to employees and directors, as specified in the Company�s article. The estimations were recognized as operating expenses. If the actual amounts differ from the estimated amounts, the differences shall be accounted as changes in accounting estimates and recognized as profit or loss in the following year. If the Board resolves to distribute stocks as employee compensation, the number of shares distributed as compensation is calculated based on the closing price of the common stock on the day before the Board�s resolution.

The Company estimated its remuneration to employees at $11,563 thousand and $10,919 thousand for 2020 and 2019, and remuneration to directors at $40,471 thousand and $38,216 thousand for 2020 and 2019, respectively. The actual amount of remuneration distributed to employees for 2020 and 2019 were $11,725 thousand and $10,958 thousand, reflecting an underestimation of $39 thousand for both years. The actual amount of remuneration distributed to directors for 2020 and 2019 were $41,036 thousand and $38,352 thousand, reflecting an underestimation of $565 thousand and $136 thousand for the respective years. The differences between the estimated amounts in the financial statements and the actual amounts distributed were accounted for as changes in accounting estimates, and were recognized as profit or loss for 2021 and 2020. Related information is available on the website of the Market Observation Post System.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(t) Non-operating income and expenses

(i) Interest income

The details of the Group�s interest income for 2021 and 2020 were as follows:

Interest income from bank deposits Interest income from loans to other parties Other interest income Total interest income	For the Years Ended December 31	For the Years Ended December 31
	2021 $ 6,722 127 $ 1,083 $ 7,932	2020
		4,061 19,791 4,595
		28,447

(ii) Other income

The details of the Group�s other income for 2021 and 2020 were as follows:

Dividend income Remuneration to directors and supervisors Income from fines and penalties (Note) Other income Total Other income	For the Years Ended December 31	For the Years Ended December 31
	2021 $ 238,441 50 - 16,116 $ 254,607	2020
		193,788 544 12,645 9,546
		216,523

Note: The Group entered into a joint land development project with nonrelated parties. Since it was expected that the land transfer could not be completed by the agreed date specified in contract, both parties agreed to terminate the contract with compensation.

(iii) Other gains and losses

The details of the Group�s other gains and losses for 2021 and 2020 were as follows:

Gains (loss) on disposal of property, plant, and equipment Losses on disposals of investment property Gains (loss) on disposals of investments Foreign exchange gains (losses) Net gain (loss) on financial assets at fair value through profit or loss Impairment loss Loss on bond redemption Others Other gains and losses, net	For the Years Ended December 31 2021 2020 $ (1,260) 461 - (9,360) 10,838 (1,496) 281 (2,214) 590,136 767,795 - (7,312) (28,772) - 5,903 (1,150) $ 577,126 746,724
	2021 $ (1,260) - 10,838 281 590,136 - (28,772) 5,903 $ 577,126

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iv) Finance costs

The finance costs of the Group for 2021 and 2020 were detailed as follows:

Interest expense Interest expense on lease liabilities Finance-related fee expense Less: Capitalisation of interest Finance costs, net Capitalized rate	For the Years Ended December 31 2021 2020 $ 113,938 85,097 1,020 381 33,826 35,009 (10,318) (8,205) $ 138,466 112,282 1.85%~2.00% 1.85%~2.00%
	2021 $ 113,938 1,020 33,826 (10,318) $ 138,466 1.85%~2.00%

• (u) Financial instruments

• (i) Credit risk

  • 1) Maximum amount of credit risk exposure

The carrying amount of financial assets and contract assets represents the maximum credit risk exposure of the Group.

2) Concentration of credit risk

The customers of the construction engineering department of the Group are concentrated in the construction company and government agencies. In order to reduce credit risk, the Group continuously evaluates the financial status of the customers and requires the other party to provide guarantees or guarantees when necessary. It also regularly evaluates the possibility of the recovery of accounts receivable and makes appropriate allowances for bad debts. The related bad debt losses are still within the expectations of the Administration.

In respect of investment business, the Group conducts financial instrument transactions banks with good credit standing and financial institutions which are graded above investment level, so there shall be no material credit risks.

As the funeral segment and recreation segment of the Group have a large customer base, and most of the transactions are conducted in cash, the credit risk of accounts receivable are not significantly concentrated. To reduce credit risk, the Group continuously assesses the financial condition of its customers, normally without a request for collateral.

3) Receivables

For credit risk exposure of notes and trade receivables, please refer to Note 6(d).

Other financial assets at amortized cost includes other receivables and investments in domestic preferred shares. Except for fund loans and payments provided with requested guarantees according to individual credit risk assessment, the rest were financial assets with low credit risk. Therefore, the 12month expected credit loss amount was used to measure the loss allowance during the period (please refer to Note 4(g) for the explanation on how the Group determines that the credit risk to be low).

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The loss allowance provision for 2021 and 2020 were determined as follows:

Balance at December 31, 2021 (Balance at January 1, 2021) Balance at January 1, 2020 Impairment loss recognized Reversal of impairment loss Balanace at December 31, 2020	Other receivable $ 384 $ 16,534 384 (16,534) $ 384

• 4) Credit risk of contract assets

The clients of the Group are mainly concentrated within public tender projects and private projects. As of December 31, 2021 and 2020, in respect of credit risk concentration, government construction contracts accounted for 39% and 27% of the total contract assets, respectively. However, since the counterparty was mainly a government agency, there was no significant credit risk. In order to reduce credit risk of private projects, the Group still regularly evaluates the recoverability of contract assets and makes loss allowances for bad debts, and the related bad debt losses are still within the expectations of management.

(ii) Liquidity risk

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

December 31, 2021 Nonderivative financial liabilities Floating rate instruments Fixed rate instruments Lease liability Non-interest-bearing liabilities December 31, 2020 Nonderivative financial liabilities Floating rate instruments Fixed rate instruments Lease liability Non-interest-bearing liabilities	Carrying amount $ 5,651,985 981,576 72,172 6,123,359 $ 12,829,092 $ 4,209,601 3,050,704 13,751 5,953,101 $ 13,227,157	Contractual cash flows 5,762,856 982,948 75,043 6,123,359 12,944,206 4,276,683 3,134,422 14,055 5,953,101 13,378,261	Within 1 year 3,663,965 982,948 20,649 2,645,847 7,313,409 3,218,429 608,922 8,914 2,565,374 6,401,639	1-2 years 498,572 - 17,521 341,531 857,624 470,448 2,525,500 4,037 284,080 3,284,065	2-5 years 1,126,175 - 36,873 999,525 2,162,573 587,806 - 1,104 1,105,089 1,693,999	Over 5 years
						474,144 - - 2,136,456
						2,610,600 - - - 1,998,558
						1,998,558

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

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Currency risk: The Group has no significant exposure to currency risk.

(iv) Interest rate analysis

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

The following sensitivity analysis is based on the exposure to the interest rate risk of derivative and non-derivative financial instruments on the reporting date. Regarding assets with variable interest rates, the analysis is based on the assumption that the amount of assets outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases by 0.5% when reporting to management internally, which also represents the Group management's assessment of the reasonably possible interest rate change.

If the interest rate increased (decreased) by 0.5%, with all other variable factors remained constant the Group�s profit after tax would have decreased (increased) by $17,561 thousand and $9,275 thousand for the 2021 and 2020, respectively. This is mainly due to the Group�s borrowing and deposits at floating rates.

(v) Other price risk

The sensitivity analyses for the changes in the securities price at the reporting date were performed using the same basis for the other comprehensive income as illustrated below:

Securities price at the reporting date 0.5% increase 0.5% decrease	For the Years Ended December 31 2021 2020 Other comprehensive income, net of tax Post-tax profit or loss Other comprehensive income, net of tax Post-tax profit or loss $ 1,547 1,144 2,398 25,979 $ (1,547) (1,144) (2,398) (25,979)	For the Years Ended December 31 2021 2020 Other comprehensive income, net of tax Post-tax profit or loss Other comprehensive income, net of tax Post-tax profit or loss $ 1,547 1,144 2,398 25,979 $ (1,547) (1,144) (2,398) (25,979)
	2021
	Other comprehensive income, net of tax $ 1,547 $ (1,547)	Post-tax profit or loss

(vi) Fair value of financial instruments

1) Categories of financial instruments and fair value hierarchy

The fair value of financial assets at fair value through profit or loss, and financial assets at fair value through other comprehensive income is measured on a recurring basis. The following table sets out the carrying amount and fair value of the Group�s financial assets and liabilities, including the information on fair value hierarchy but excluding the optional information on financial instruments not measured at fair value with carrying amount reasonably close to their fair and lease liabilities.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets at fair value through profit or loss Non-derivative financial assets at fair value through profit or loss, mandatorily measured at fair value Financial assets at fair value through other comprehensive income Domestic listed stocks Unquoted equity instruments at fair value through other comprehensive income Subtotal Financial assets at fair value through profit or loss Non-derivative financial assets at fair value through profit or loss, mandatorily measured at fair value Financial assets at fair value through other comprehensive income Domestic listed stocks Unquoted equity instruments at fair value through other comprehensive income Subtotal		December 31, 2021	December 31, 2021	December 31, 2021
	Book Value $ 228,896 $ 2,910 306,459 $ 309,369		Fair Value
		Level 1 Level 2 Level 3 228,896 - - 2,910 - - - 22,500 283,959 2,910 22,500 283,959 December 31, 2020			Total 228,896 2,910 306,459
					309,369
			Fair Value
		Level 1 5,195,794 22,790 - 22,790	Level 2 - - 17,850 17,850	Level 3 - - 439,054 439,054	Total 5,195,794 22,790 456,904
					479,694

2) Fair value valuation technique of financial instruments not measured at fair value

The assumptions and methods used in valuing financial instruments that are not measured at fair value are as follows:

• a) Financial assets and financial liabilities measured at amortized cost

If recent transaction prices or market maker quotes are available, the fair value is based on such information. If there is no quoted market price available, the fair value is determined by using valuation techniques and calculated as the present value of the estimated cash flows.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 3) Fair value valuation technique of financial instruments measured at fair value

• a) Non-derivative financial instruments

Fair value measurement of financial instruments was based on quoted market prices if these prices were available in an active market. The quoted price of a financial instrument obtained from main exchanges and on-the-run bonds from Taipei Exchange can be used as a base to determine the fair value of the listed companies� equity instrument and debt instrument of the quoted price in an active market.

A financial instrument is regarded as the quoted price in an active market if the quoted prices are readily and regularly available from an exchange, dealer, broker, industry group, pricing service or regulatory agency; and if those prices represent the actual and regularly occurring market transactions on an arm�s length basis. Otherwise, the market is deemed to be inactive. In general, market with low trading volume or high bid-ask spreads is an indication of a non-active market.

The categories and nature of the fair value for the Group�s financial instruments which have active market are as below:

Publicly traded stock, bank draft and bond with standard terms, conditions and traded in active market. The fair value is based on quoted market prices.

Measurements of fair value of financial instruments without an active market are based on valuation technique or quoted price from a competitor. Fair value, measured by using valuation technique that can be extrapolated from either similar financial instruments or discounted cash flow method or other valuation techniques, including models, is calculated based on available market data at the reporting date. (For example, over the counter yield curve and Reuters Primary CP Rate average prices.)

The categories and nature of the fair value for the Group�s financial instruments which without an active market are as below:

The main assumption behind this is that the estimated pre tax, pre depreciation, and pre amortization earnings of the investee company is added to the earnings multiplier derived from the comparable quoted price of the listed company. The estimate of the fair value of equity instruments has been adjusted due to the effect of the discount arising from the lack of market liquidity of the equity security.

• 4) Transfers between Level 1 and Level 2: None.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• 5) Reconciliation of Level 3 fair values

January 1, 2021 Total gains and losses Recognized in other comprehensive income Purchased Disposal Capital reduction December 31, 2021 January 1, 2020 Total gains and losses Recognized in other comprehensive income Purchased Disposal December 31, 2020	Fair value through other comprehensive income Unquoted equity instruments $ 439,054 (84,802) 70,000 (104,065) (36,228) $ 283,959 $ 413,448 35,388 75,218 (85,000) $ 439,054

The aforementioned total gains or losses were classified as �unrealized gains or losses from financial assets at fair value through other comprehensive income�. The gains or losses attributable to the assets held as of December 31, 2021 and 2020 were as follows:

Total gains and losses Recognized in other comprehensive income (classified as �unrealized gains or losses from financial assets at fair value through other comprehensive income�)	2021 2020 $ 26,594 13,510

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

The Consolidated Company�s financial instruments that use Level 3 inputs to measure fair value include fair value through other comprehensive income�equity investments.

Most of the Group�s financial instruments that use Level 3 inputs have only one significant unobservable input. Only equity investment with no-active markets have multiple significant unobservable inputs. The significant unobservable inputs of the equity investments without an active market are independent, therefore, there is no correlation between them.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Quantified information on significant unobservable inputs was as follows:

Item Financial assets at fair value through other comprehensive income -equity investments without an active market Financial assets at fair value through other comprehensive income equity investments without an active market	Valuation technique Comparable listed companies approach Asset Method	Significant unobservable input Inter-relationship between significant unobservable inputs and fair value measurement Value multiple (0.59~5.29 and 0.4~8.4 as of December 31, 2021 and 2020 ) Market liquidity discount rate (31.05%~32.28% as of (December 31, 2021 and 2020) The higher the multiple, the higher the fair value The higher the market liquidity discount rate, the lower the fair value. Market liquidity discount rate (32.28% as of December 31, 2021 and 2020) Control discount (10.47%~22.24% and 6.45%~22.24% as of December 31, 2021 and 2020) The higher the market liquidity discount rate, the lower the fair value. The higher the control discount, the lower the fair value

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

The Group�s measurement on the fair value of financial instruments is deemed reasonable despite different valuation models or parameters may lead to different results. For fair value measurements in Level 3, changing one or more of the assumptions would have the following effects on profit or loss and other comprehensive income:

December 31, 2021 Financial assets fair value through other comprehensive income Equity investments without an active market Equity investments without an active market December 31, 2020 Financial assets fair value through other comprehensive income Equity investments without an active market Equity investments without an active market	Input Market liquidity discount Control discount Market liquidity discount Control discount	Upward or downward 1% 1% 1% 1%	Other comprehensive income Favorable effect Unfavorable effect 2,458 (2,453) 1,901 (1,866) 857 (846) 2,461 (2,417)

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

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(v) Financial risk management

• (i) Overview

The Group is exposed to the following risks arising from financial instruments:

• 1) Credit risk

• 2) Liquidity risk

• 3) Market risk

This note expressed the information on risk exposure and objectives, policies and process of risk measurement and management of the Group. For more disclosures about the quantitative effects of these risk exposures, please refer to respective notes in the report.

(ii) Structure of risk management

The Board of Directors has overall responsibility for the establishment and oversight of the risk management framework. The financial management department, which reports regularly to the Board of Directors on its activities to develop and monitor the Group�s risk management policies.

The Group�s risk management policies are established to identify and analyze the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group�s activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.

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

(iii) Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Group�s receivables from customers, contract assets, and financial assets.

1) Accounts receivable and other receivables

The Group�s policy requires client evaluation and credit verification prior to conducting transactions. The clients of Group are mainly concentrated in construction companies and government agencies. Since the transaction counterparty is a government agency, there is no risk of credit risk. For the remaining trading partners, in order to reduce credit risk, the Group continuously evaluates the financial status of customers. When necessary, the counterparty will be required to provide guarantees or guarantees, and the possibility of recovering the accounts receivable is regularly evaluated and an allowance for losses is appropriately set. The relevant losses are still within the expectations of the management.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Contract assets

The Group�s policy requires client evaluation procedures prior to conducting transactions. The projects undertaken by the Group are mainly concentrated within public tender projects and private projects. The Group continuously assesses the financial position of its customers and the recovery of contract assets and sets aside appropriate loss allowance for the loss, which is expected by the management.

3) Investment and securities payments receivable

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

4) Guarantees

The Group�s policy is to provide financial guarantees only for subsidiaries with over 50% of their voting shares held by the Group. As of December 31, 2021 and 2020, the Group has not provided any endorsement or guarantee for any external party. For the endorsements and guarantees provided by the Group, please refer to Note 13 for details.

(iv) Liquidity risk

The Group manages and maintains sufficient cash and cash equivalents so as to cope with its operations and mitigate the effects of fluctuations in cash flows. The Group�s management supervises the banking facilities and ensures in compliance with the terms of the loan agreements.

The loan was an important source of liquidity for the Group. As of December 31, 2021 and 2020, the Group had unused bank facilities of $2,185,082 thousand and $2,920,825 thousand, respectively.

(v) Market risk

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

• 1) Currency risk: The Group�s has no significant foreign currency risk.

• 2) Interest rate risk

The policy of the Group is to adopt the best interest rate portfolio for financial liabilities to be reviewed and controlled by the management to control risk exposure to interest rate fluctuations.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(w) Capital management

The Group sets its objectives for managing capital to sustain the future development of the business, to continue to provide returns to its shareholders and other related parties, and to maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Group may adjust the dividend payment and reduce the capital for redistribution to its shareholders. The Group also issues new shares or sell assets to settle any liabilities.

The Group uses the debt-to-equity ratio to manage capital. This ratio is calculated by dividing the net liabilities by the total capital. The net debt from the balance sheet is derived from the total liabilities less cash and cash equivalents. The total capital and equity include share capital, capital surplus, retained earnings, other equity and other equity interest plus net debt.

Debt-to-equity ratios at December 31, 2021 and 2020 were as follows:

Total liabilities Less: Cash and cash equivalents Net debt Total equity Adjusted capital Debt to equity ratio	December 31, 2021 $ 14,214,376 (1,293,520) 12,920,856 10,270,581 $ 23,191,437 % 55.71	December 31, 2020 14,696,450 (1,911,545) 12,784,905 9,533,970 22,318,875 % 57.28

• (x) Investing and financing activities not affecting current cash flow

The non-cash transactions for investing and financing activities of the Group for 2021 and 2020 were as follows:

• (i) For right-of-use assets under leases: 81,458 thousand.

(ii) The Group called back corporate bonds in advance, please refer to Note 6(m) for details.

• (iii) Reconciliation of liabilities arising from financing activities were as follow:

Short-term borrowings Short-term notes and bills payable Long-term borrowings Guarantee deposits received Bonds payable Lease liabilities Total amount of liabilities arising from financing	January 1, 2021 $ 3,878,182 580,974 331,419 1,994,081 2,469,730 13,751 $ 9,268,137	Cash flows 193,674 389,200 1,248,710 127,381 (2,523,458) (20,656) (585,149)	Non-cash changes Changes in lease payments Other - - - (Note1) 11,402 - - - - - (Note2) 53,728 (2,381) (Note 3) 81,458 (2,381) 146,588	December 31, 2021
				4,071,856 981,576 1,580,129 2,121,462 - 72,172
				8,827,195

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Short-term notes and bills payable Short-term notes payable Long-term borrowings Guarantee deposits received Bonds payable Lease liabilities Total amount of liabilities arising from financing	January 1, 2020 $ 1,600,410 - 389,770 4,662 2,466,135 42,133 $ 4,503,110	Cash flows 2,277,772 168,317 (62,004) 1,345 - (30,720) 2,354,710	Non-cash changes Acquisition through business combination Changes in lease payments Other - - - 409,800 - (Note1) 2,857 3,653 - - 1,988,074 - - - - (Note2) 3,595 - (1,063) (Note 4) 3,401 2,401,527 (1,063) 9,853	Non-cash changes Acquisition through business combination Changes in lease payments Other - - - 409,800 - (Note1) 2,857 3,653 - - 1,988,074 - - - - (Note2) 3,595 - (1,063) (Note 4) 3,401 2,401,527 (1,063) 9,853	December 31, 2020 3,878,182 580,974 331,419 1,994,081 2,469,730 13,751
			Acquisition through business combination - 409,800 3,653 1,988,074 - - 2,401,527	Changes in lease payments - - - - - (1,063) (1,063)
					9,268,137

Note 1:It is the discount and amortization of short-term bills payable.

Note 2:Discount amortization of corporate bonds of $24,956 thousand and loss on bond redemption of $28,772 thousand.

Note 3:This is an increase of $81,458 thousand.

Note 4:Discount amortization of corporate bonds. Note 5:This is an increase of $3,401 thousand.

(7) Related-party transactions:

(a) Related-party name and relationship

The followings are related parties that have had transactions with the Group during the periods covered in the consolidated financial statements:

covered in the consolidated financial statements:
Name of related party	Relations with the Consolidated Group
Sky Honor International Co.,Ltd ((Sky Honor International)	Associate of the Group
Rei Ying Construction Co, Ltd. (Rei Ying Construction)	Associate of the Group
Rei Jhao Engineer Ltd. (Rei Jhao Engineer)	Associate of the Group
Fortune Base Development Co., Ltd. (Fortune Base Development)	Legal person of ultimate parent
Global Funeral Services Co., Ltd. (Global Funeral Services)	Legal person of ultimate parent
Heng Fu Development Co., Ltd. ( Heng Fu Development)	Substantive related party
Heng Chuang Industrial Co., Ltd. ( Heng Chuang Industrial)	Substantive related party
Han Yu Investment Co, Ltd. ( Han Yu Investment)	Substantive related party
You Long Construction Development Co., Ltd.	Substantive related party
(You Long Construction)
Ming Jhu Investment Co, Ltd. ( Ming Jhu Investment)	Substantive related party
Sung Gang Corp. Limited (Sung Gang)	Substantive related party

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of related party	Relations with the Consolidated Group
Si Wang Investment Co, Ltd. (Si Wang Investment)	Substantive related party
Si Wang Investment Co, Ltd. (Si Wang Investment)	Substantive related party
Ontario Investment Co, Ltd. (Ontario Investment)	Substantive related party
Global Golf Sports Development Foundation (Global Foundation)	Same director with the Company

(b) Significant related-party transactions

(i) Sales

The amounts of the Group�s significant sales to related parties were as follows:

Construction projects	Contract	amount December 31, 2020 122,762	Current price	Current price
	December 31, 2021 $ -		For the Years Ended December 31
			2021 -	2020
				32,376

As a construction contractor, the Group complied with related parties� operation rules and requested additional management fees and payment based on the project budget and profit, and the prices were submitted to supervisors for approval after the price comparison and negotiation process. As of December 31, 2021 and 2020, the contract liabilities arising from the construction contracts were zero, respectively.

(ii) Purchases

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

Associates	Contract	amount December 31, 2020 30,637	Current price	Current price
	December 31, 2021 $ 27,917		For the Years Ended December 31
			2021 10,012	2020
				9,719

The purchase price of the Group to related parties is not significantly different from the other parts. The payment period is 30 to 60 days, which is not significantly different from the others.

(iii) Receivables from related parties

The receivables due from related parties were as follows:

Account title	Category of related party	December 31, 2021 $ 281	December 31, 2020
Accounts receivable	Other related parties		-

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iv) Payables to related parties

The payables to related parties were as follows:

Account title	Category of related party	December 31, 2021 $ 1,714 - 1,723 7,555 $ 10,992	December 31, 2020
Notes payable Notes payable Accounts payable Other payable	Other related parties Heng Fu Development Other related parties Other related parties Other related parties		1,577 145 723 100
			2,545

(v) Leases

Leases
				Lease liabilities		Interest expense
						For the Years Ended
						December 31
			December 31,		December
Category of related	party	Use		2021	31, 2020	2021	2020
Other related parties	Sung	Office building	$	-	2,030	43	37
Gang
Other related parties Fu Development	Heng	Office building (Note)		68,086	3,591	824	178
			$	68,086	5,621	867	215

• Note: On March 2016, the Group entered into lease contracts that five years with other related parties, Heng Fu Development Co., Ltd.. The original contract expired in March 2021, and the Group re-signed a five-year lease contract with quotes, resulting in an increase of $76,935 thousand in right-of-use assets and lease liabilities in the current period.

(vi) Financial leasing

On October 2021, the Group leased out part of the interior decoration to associates, Sky Honor International. The lease period covered the entire economic life of the decoration, so it was classified as a financial leasing. It is reported that the present value of lease payments receivable to be received in the future is $5,104 thousand, which is accounted for as other current assets of $1,123 thousand and other non-current assets of $3,981 thousand respectively.

• (vii) The guarantees provided by other related parties Fortune Base Development for subsidiaries pursuant to the provisions of construction contracts have amounted to $2,857,086 thousand as of December 31, 2021 and 2020.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(viii) Property transactions

• 1) Property, plant and equipment acquired

Category of related party	Transaction item Date of transaction Land and buildings at Gongyuan, Jhongjheng Dist., Taipei City May 12, 2021 Land at Jyuguang, Wanhua District, Taipei City March 6, 2020 Land and buildings at Gongyuan, Jhongjheng Dist., Taipei City March 6, 2020 Land and buildings at Rongxing, Jhongshan Dist., Taipei City May 14, 2020 Land and buildings in the park section of Taipei's Central Mountain District December 12, 2020	Date of transaction	Transaction amount	Date of the last transfer	Basis of pricing Account title
For the Year Ended December 31, 2021			$ 921,121 $ 32,000 $ 86,275 $ 208,366 $ 921,121	April 28, 2011 May 9, 2018 September 8, 2011 July 27, 1995 April 28, 2011	Appraisal Report Investment property Fairness opinion by accountant Inventories Appraisal Report Investment property Appraisal Report Investment property Appraisal Report Investment property
Other related parties Global Funeral Services For the Year Ended December 31, 2020
Other related parties Si Wang Investment Other related parties Fortune Base Development Other related parties Ontario Investment Other related parties Global Funeral Services

• (ix) In January 2021, the subsidiary and other related parties - Global Funeral Services and Fortune Base Development jointly signed the development project of the Dingjin Section of Kaohsiung's Sanmin District, and the subsidiary was responsible for business approval and new construction.

• (x) In November 2021, the Group signed a co-development contract for the Sunlight of Life Project with other related parties, Fortune Base Development and Sky Honor International, and the Group was responsible for the planning, design, construction and supervision. Due to the needs of business transactions, the Group loan $50,000 thousand to other related party, Sky Honor International, and the amount used on December 31, 2021 was zero.

• (xi) The Group entrusted another related party - Fortune Base Development to develop and sell funeral facilities in the 2021, and the commission was calculated based on the sales amount. The commission expense in 2021 was $7,045 thousand (under the item of sales promotion expenses). As of December 31, 2021, the unpaid amount was $7,045 thousand (under other payables).

(xii) Others

The transactions between the Group and other related parties are set out as follows:

Account	Related Parties	December 31, 2021 December 31, 2020 $ 1,525 501 2,733 2,544
Other current assets Other non-current financial assets	Other related parties Other related parties

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Key management personnel compensation

Compensation to key management personnel comprised:

Compensation to key management personnel comprised:
Short-term employee benefits Post-employment benefits	2021 $ 17,958 263 $ 18,221	2020
		16,123 269
		16,392

(8) Pledged assets:

The book value of the Consolidated Company�s pledged assets is as follows:

Pledged assets	Subject of collateral	December 31, 2021 $ 8,873 3,686,218 1,764,692 726,129 224,613 89,318 - 1,566,433 5,000,358 $ 13,066,634	December 31, 2020
Financial assets at fair value through profit or loss Investments accounted for using equity method Inventories Other current financial assets Other current financial assets Other current financial assets Other non-current financial assets Investment property Property, plant, and equipment	Bank borrowings, commercial papers and ordinary corporate bonds issued Bank borrowings and commercial papers Bank borrowings and commercial papers Performance bonds and warranty bonds Borrowing Trust account Reserve account for ordinary corporate bonds, time deposits, performance bond for Nantou funeral parlor Bank borrowings Bank borrowings and commercial papers		4,465,970 - 1,642,321 606,736 134,853 86,507 571,001 511,331 4,577,967
			12,596,686

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(9) Commitments and contingencies:

• (a) Significant unrecognized commitments

• (i) TheGroup�s unrecognized contractual commitments were as follows:

Sale of perpetual use rights of columbarium niches Columbarium improvement contracts Columbarium construction contracts Acquisition of property, plant and equipment Sales of land and properties Construction project contracts	December 31, 2021 December 31, 2020 $ 221,128 268,876 900 23,677 95,655 12,445 49,200 758,001 1,603,486 1,233,187 32,598,365 28,405,982

As of December 31, 2021 and 2020, the refundable promissory notes for the aforementioned project contracts amounted to $5,552,177 thousand and $4,370,140 thousand, respectively.

• (ii) As of December 31, 2021, details on the co-development contracts entered into with landowners are as follows:

Forms of co-development	Name of constructionproject
Urban Renewal Plan	Chengde Road Project and Xiyuan Road Project
Co-developments with landowners	The Sunlight of Life Project

• (iii) As of December 31, 2021 and 2020, the guarantee provided by companies in the same industry for the Group�s construction contracts amounted to $4,253,923 thousand.

• (iv) As of December 31, 2021 and 2020, the Group�s bank guarantee in construction amounted to $3,123,901 thousand and $3,359,371 thousand, respectively.

(b) Joint operation

A joint agreement was entered into between the subsidiary and RexCapital Development Ltd. on August 18, 2020, in order to jointly develop the land located at Xinxing Rd., Banqiao Dist., New Taipei City. In a joint agreement, both parties are jointly bound to share and recognize 50 percent of the assets, liabilities, and profit (loss) relating to the agreement when the obligations therein were performed by both parties.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Contingent liability:

(i) As of December 31, 2021 and 2020, major disputes over contract performance are as follows:

Project Name Yong Yu Tian Xin December 31, 2021 December 31, 2020 Xiang Yu, Twin Towers December 31, 2021 December 31, 2020	Accounts Receivable $ - $ 24,454 $ - $ -	Other Accounts Receivable - 6,793 - 11,219	Contracts Assets - 10,986 - 7,123	Disputes on Contract Performance Anticipated Loss (Note) 1.The subsidiary requested the owner to pay the balance of the contract price, additional works, and promissory note for performance guarantee executed by the owner without authorization, amounting to $24,454 thousand, $4,688 thousand, and $6,793 thousand, respectively. 2.The owner claimed the amounts of $34,600 thousand as delay penalty (delayed for 173 days) and $73,654 thousand for repair expense on construction defects, both of which added up to $38,464 thousand. The owner requested to offset the total claim against the balance of construction price. 3.The subsidiary agreed to mediate in the court on December 6, 2021, and the owner agreed to pay the amount of $17,000 thousand requested by the subsidiary. $ - $ 32,000 1.The subsidiary undertook a new construction project of Xiang Yu, Twin Towers, and provided the performance warranty and bank guarantee of $7,479 thousand and $11,219 thousand, respectively. 2.The warranty for this project has expired, yet on November 6, 2017, the owner sent a letter of attestation, alleging that the subsidiary failed to fulfill its warranty against the damage of $1,118 thousand for which the owner paid on behalf of the subsidiary. However, the owner claimed in the first defense that the expense for the repairs and maintenance amounted to $14,287 thousand, without providing any corroborating information of the alleged expense. The owner claimed that the actual amount spent might be larger. In the absence of any authenticated evidence and authorization, the owner executed a promissory note issued for this project. 3.The subsidiary filed a lawsuit in January 2020 against the owner claiming for the return of the warranty bond and the promissory note that has been executed. The case is still in progress at the Taiwan Taipei District Court. 4.The subsidiary and the owner reached a settlement on November 18, 2021, wherein the owner paid the amount of $8,000 thousand for the project, resulting in the subsidiary to revoke the lawsuit. $ - $ 2,000

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

==> picture [463 x 124] intentionally omitted <==

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

Other
Project Accounts Accounts Contracts Anticipated
Name Receivable Receivable Assets Disputes on Contract Performance Loss (Note)
Construction
Project of
Congregate
Housing, Fu Cheng
Productivity
December 31, $ 28,445 31,000 - 1.The owner executed a promissory note issued by the $ 20,000
2021 subsidiary as the performance bond without authorization,
owing to which the subsidiary claimed against the owner
December 31, $ - 31,000 28,445 for the return of the promissory note amounting to $ -
2020 $31,000 thousand. The subsidiary also requested for the
----- End of picture text -----

balance of the contract price amounting to $29,868
thousand.
2.It has been decided by the Chinese Arbitration Association
that the owner shall pay the amount of $65,821 thousand,
plus an annual interest rate of 5%, staring from July 21,
2018. The subsidiary has, based on the arbitration award,
filed a petition for compulsory enforcement with the
Taiwan Taichung District Court.
3.The owner filed a petition with the Taiwan Taipei District
Court to stay retain the foregoing compulsory
enforcement and was granted by the court. On April 6,
2021, the subsidiary then filed an interlocutory appeal
against said ruling, in which it was dismissed by the
Supreme Court.
4.Meanwhile, the owner filed an application to set aside the
aforementioned arbitration award to the Taipei District
Court, who ruled that the owner shall pay the amount of
$52,332 thousand. With regard to the reduced amount of
$8,535 thousand, the Taiwan High Court abrogated the
ruling of the District Court, which was in favor of the
subsidiary.However, the owner, who has been requested
to pay the amount of $9,834 thousand in the second
instance, appealed to the Supreme Court. The case is still
in progress.
5.On the other hand, the owner claimed the amount of
$73,654 thousand against the subsidiary for the damage
incurred by terminating of contract. On June 10,2021, the
Taiwan Taichung District Court ruled that the subsidiary
should pay the owner the amount of $52,528 thousand,
wherein the subsidiary filed an appeal against the above
ruling on June 25 of the same year. The case is still in
progress.
6.With regard to the abovementioned claims, the lawyer in
charge of the case advised that the owner�s claim was
groundless because both parties had mutually agreed to
terminate the agreement before the completion of the
construction project, and the appraisal report stated that if
the project was re contracted, there would be new projects
due to the continuation of the project amounting to
$14,554 thousand, which the price adjustment of 5,966
thousand, totaling $20,520 thousand, and the amount of
damages claimed by the owner was only for the
subcontracted engineering contract. Both were based on
estimates and there was no sufficient evidence of actual
expenses to prove that the owner's damage should be fully
borne by the company. The lawyer in charge of the case
believed that there were still many disputes to be clarified
in the original judgment, and some opinions were
different from the practical opinions of the court.
Nonetheless, the final result is still subject to the court�s
ruling.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Project Name East Asia Water December 31, 2021 December 31, 2020 Construction Project of Jing Qin Building,National Taipei University of Technology December 31, 2021 December 31, 2020 The Public Housing Construction Project on Minglun Public Housing, Datong District, Taipei City December 31, 2021 December 31, 2020	Accounts Receivable $ 107,043 $ - $ 23,627 $ - $ - $ -	Other Accounts Receivable - - - - - -	Contracts Assets - 88,743 - 39,523 - -	Disputes on Contract Performance Anticipated Loss (Note) 1.On August 28, 2021, the subsidiary filed a civil lawsuit with the Taipei District Court, requesting the owner to pay the balance of construction price of $120,520 thousand and to return the certificate of deposit of $49,000 thousand provided as performance bond. 2.On the other hand, on December 28, 2020, the owner filed a civil lawsuit with the Taipei District Court requesting for the delay penalty of $196,000 thousand. The owner also alleged that the subsidiary shall pay the amount of $41,968 thousand after deducting the total balance of the contract and the amount of the aforementioned certificate of deposit. The subsidiary applied for appraisal on the disputed project on April 15, 2021. The case is still in progress. 3.The lawyer in charge of the case believed that the requests of the company were all legal claims, and it is difficult to clarify the disputes without the identification of professional authorities. The subsidiary applied for appraisal in accordance with the law, and the court still needed to approve the appraisal matters. Nonetheless, the final result is still subject to the court ruling. $ 20,500 $ 20,500 1.The performance dispute in this case includes an extension of 611.5 days, and a delay penalty of $127,000 thousand. The subsidiary has applied for mediation with the Public Construction Commission, Executive Yuan and the case is currently in process. $ 12,700 $ 12,700 1.The subsidiary requested the owner to extend the completion deadline for 71 days, and the license acquisition deadline for 1 day, as well as to return the liquidation damage of $13,251 thousand due to the failure to dispatch the quality control personnel within the term, overdue submission of the drawings and designs for review, and additional works of $19,970 thousand. $ - $ - 2.The subsidiary has applied for mediation with the Complaints Review Committee for Taipei City Government Procurement. On August 13, 2021, the mediation had been settled, wherein the owner should pay the amount of $4,626 thousand for breach of contract, a construction fee of $6,711 thousand for additional works, and extend the completion deadline for 9 days, as well as the license acquisition deadline for 1 day.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Project Name Bao Hong Jing Mei Building Construction Project, Bao Hong Da Bai Congregate Housing December 31, 2021 December 31, 2020 Shalun Smart Green Energy Science City Zone C December 31, 2021 December 31, 2020	Accounts Receivable $ - $ 7,034 $ - $ 41,946	Other Accounts Receivable - - - -	Contracts Assets - 29,169 - 41,391	Disputes on Contract Performance Anticipated Loss (Note) 1.The subsidiary, pursuant to the arbitration clause of the contract, filed a motion to compel the arbitration, requesting for the balance of the construction contract of $39,418 thousand. On the March 29, 2021, the Chinese Arbitration Association decided that the owner shall pay the amount of $29,168 thousand, plus an annual interest at a rate of 5%, staring from August 30, 2019. $ - $ 3,600 1.The subsidiary requested the owner to return the penalty of $49,908 thousand incurred from the delayed completion of the sub project, for which the subsidiary filed a claim for mediation. On February 26, 2021, the mediation was settled, wherein the Mediation Committee requested that the owner shall, pursuant to the project contract, return the amount of $49,829 thousand to the subsidiary. $ - $ -

The amounts of significant performance disputes with the owners were summarized as follows:

Accounts receivable Other receivables Contracts assets Expected loss	December 31, 2021 $ 159,115 $ 31,000 $ - $ 53,200	December 31, 2020
		73,434 49,012 245,380 70,800

• Note: For the construction agreements entered into by the subsidiary and the owner(s), the owner�s commitment consideration might vary due to the aforementioned disputes over the contract performance. The subsidiary has estimated the variations of the amount of consideration and has adjusted the said amount in the income statement during the period that the consideration has varied.

• (ii) As of December 31, 2021, the cases wherein the subsidiary requested the owner to increase the number of projects or additional works are as follows:

Project name	Request for additional items
Basketball Gymnasium, Taipei Municipal He Ping Elementary School New Construction Project	1.The subsidiary requested the payment of $64,865 thousand for the additional items and other payment in dispute. 2.The case is currently in progress with the Taiwan Taipei District Court, who has entrusted the Taiwan Professional Civil Engineers Association to conduct an expert assessment, and the result thereof is still in pending.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (iii) As of December 31, 2021, the payment dispute between the subsidiary and the contractors included the total amount of lawsuits filed by the subsidiary against the contractors of $12,397 thousand, and the total amount of lawsuits filed by the contractors against the subsidiary of $162,792 thousand. The aforementioned cases are still in progress. According to the evaluation of the pro hac vice counsel, the results are unpredictable since the cases involved numerous projects, with complicated miscellaneous claims, as follows:

Project name	Request for additional items
Linkou Public Housing and the 2017 Universiade Athletes' Village Turnkey Project- 2nd.	1.The contractor requested the subsidiary to pay the unsettled construction fee and the additional construction fee of $44,440 thousand. 2.The case is currently in progress at the Taiwan Taichung District Court; and the contractor 's claim is currently being appraised by the Taiwan Construction Research Institute.
The Public Housing Construction Project on Minglun Public Housing, Datong District, Taipei City	1.The contractor requested the subsidiary to pay the construction fee, the penalty for the damages and the performance bond of $78,445 thousand for the executed works. 2.The case is currently in progress at the Taiwan Taichung District Court. On October 28,2021, the contractor 's claim (including the completed projects, quantities and payables) was currently being appraised by the Taiwan Professional Electrical Engineers Association R.O.C.

(10) Losses due to major disasters:None

(11) Significant subsequent events:None

(12) Other:

The summary of employee benefits, depreciation, and amortization, by function, was as follows:

By function By item		For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31	For the Years Ended December 31
		2021		2020
	Operating cost	Operating Expense	Total	Operating cost	Operating Expense	Total
Employee benefits
Salary	585,130	200,230	785,360	538,485	191,652	730,137
Labor and health insurance	43,425	17,064	60,489	36,988	13,168	50,156
Pension expense	22,710	6,463	29,173	22,303	6,235	28,538
Others employee benefits expense	22,298	21,043	43,341	20,703	22,313	43,016
Depreciation	27,181	28,915	56,096	38,793	15,957	54,750
Amortization	6,953	3,257	10,210	5,672	2,543	8,215

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(13) Other disclosures:

• (a) Information on significant transactions:

The following is the information on significant transactions required by the �Regulations Governing the Preparation of Financial Reports by Securities Issuers� for the Group for the as of December 31, 2021:

(i) Loans to other parties:

(In Thousands of New Taiwan Dollars)

Number	Name of lender	Name of borrower	Account name	Related party	Highest balance of financing to other parties during the period	Ending balance	Actual usage amount during the period	Range of interest rates during the period	Purposes of fund financing for the borrower	Transaction amount for business between two parties	Reasons for short-term financing	Allowance for bad debt	Coll	ateral	Individual funding loan limits	Maximum limit of fund financing
													Item	Value
0	The Company	Sky Honor International Co.,Ltd	-	Yes	50,000	50,000	-	2.0%	1 (Note 3)	50,104	For use of working capital	-	Cashier check	50,000	1,016,499 (Note 1)	4,065,996 (Note 1)
0	The Company	Rei Ju Construction Co., Ltd.	Other Receivables- Other	Yes	700,000	700,000	350,000	2.0%	2 (Note 3)	-	For use of working capital	-	Cashier check	550,000	1,016,499 (Note 1)	4,065,996 (Note 1)
1	Rei Ju Construction Co., Ltd.	Sheng Ji Interior Decoration Co., Ltd.	-	Yes	30,000	30,000	-	2.50%	2 (Note 3)	-	For use of working capital	-	None	-	154,439 (Note 2)	617,756 (Note 2)
1	Rei Ju Construction Co., Ltd.	Rei Cheng Construction Co., Ltd.	-	Yes	30,000	30,000	-	2.50%	2 (Note 3)	-	For use of working capital	-	None	-	154,439 (Note 2)	617,756 (Note 2)
1	Rei Ju Construction Co., Ltd.	ReBio Green Innovation Co., Ltd.	-	Yes	30,000	30,000	-	2.50%	2 (Note 3)	-	For use of working capital	-	None	-	154,439 (Note 2)	617,756 (Note 2)
1	Rei Ju Construction Co., Ltd.	ReiYu Green Energy Technology Co., Ltd.	-	Yes	30,000	30,000	-	2.50%	2 (Note 3)	-	For use of working capital	-	None	-	154,439 (Note 2)	617,756 (Note 2)
1	Rei Ju Construction Co., Ltd.	Ryan Development Corp.	-	Yes	136,000	-	-	2%~ 2.25%	2 (Note 3)	-	For use of working capital	-	None	-	154,439 (Note 2)	617,756 (Note 2)
2	Long Hui Development Co., Ltd.	Gold Coast Golf Co., Ltd.	-	Yes	45,000	-	-	2%	2 (Note 3)	-	For use of short-term financing	-	None	-	62,196 (Note 2)	248,784 (Note 2)
3	Rei Cheng Construction Co., Ltd.	Xun Lei Enterprise Ltd.	Other Receivables- Other	No	5,500	5,500	4,913	4%	1 (Note 3)	5,812	For use of working capital	-	Pressure feeder equipment	5,500	5,971 (Note 2)	23,884 (Note 2)
4	Everwin Investment Co, Ltd.	The Company	-	Yes	200,000	180,000	-	1.98%	2 (Note 3)	-	For use of short-term financing	-	None	-	295,514 (Note 2)	1,182,056 (Note 2)
4	Everwin Investment Co, Ltd.	Rei Ju Construction Co., Ltd.	Other Receivables- Other	Yes	200,000	200,000	200,000	2%	2 (Note 3)	-	For use of short-term financing	-	Cashier check	200,000	295,514 (Note 2)	1,182,056 (Note 2)

• Note 1: The total amount of loans provided by the Company to other parties and to a single party shall not exceed 40% and 10% of the Company�s net worth recognized in its latest financial statements, respectively.

Note 2: The total amount of loans provided by this company to other parties and to a single party shall not exceed 40% and 10% of this company�s net worth recognized in its latest financial statements, respectively.

• Note 3: Financing purposes

1.Trading counterparty

2.Entities with short-term financing needs

Note 4: The aforementioned transactions have been eliminated when compiling the consolidated financial statements.

(ii) Guarantees and endorsements for other parties:

(In Thousands of New Taiwan Dollars)

No.	Name of guarantor	Counter-party of guarantee and endorsement	Counter-party of guarantee and endorsement	Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements	Parent company endorsements/ guarantees to third parties on behalf of subsidiary	Subsidiary endorsements/ guarantees to third parties on behalf of parent company	Endorsements/ guarantees to third parties on behalf of companies in Mainland China
		Name	Relationship with the Company
0	The Company I	Everwin nvestment Co, Ltd.	2 (Note 6)	6,098,995 (Note 1)	1,100,000	1,100,000	580,000	-	% 10.82	12,197,990 (Note 1)	Y	N	N

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

No.	Name of guarantor	Counter-party of guarantee and endorsement	Counter-party of guarantee and endorsement	Limitation on amount of guarantees and endorsements for a specific enterprise	Highest balance for guarantees and endorsements during the period	Balance of guarantees and endorsements as of reporting date	Actual usage amount during the period	Property pledged for guarantees and endorsements (Amount)	Ratio of accumulated amounts of guarantees and endorsements to net worth of the latest financial statements	Maximum amount for guarantees and endorsements	Parent company endorsements/ guarantees to third parties on behalf of subsidiary	Subsidiary endorsements/ guarantees to third parties on behalf of parent company	Endorsements/ guarantees to third parties on behalf of companies in Mainland China
		Name	Relationship with the Company
0	The Company	Ryan Developmen t Corp	2 (Note 6)	6,098,995 (Note 1)	725,000	725,000	-	-	% 7.13	12,197,990 (Note 1)	Y	N	N
0	The Company	Gold Coast Golf Co., Ltd.	2 (Note 6)	6,098,995 (Note 1)	448,000	448,000	-	-	% 4.41	12,197,990 (Note 1)	Y	N	N
0	The Company	Rei Ju Construction Co., Ltd.	2 (Note 6)	6,098,995 (Note 1)	5,600,000	5,600,000	1,863,217	-	% 55.09	12,197,990 (Note 1)	Y	N	N
1	Everwin Investment Co, Ltd.	The Company	3 (Note 6)	5,910,273 (Note 2)	2,600,000	-	-	-	% -	5,910,273 (Note 2)	N	Y	N
2	Rei Ju Construction Co., Ltd.	Rei Cheng Construction Co., Ltd.	2 (Note 6)	4,633,160 (Note 3)	494,630	33,330	25,000	-	% 2.16	7,721,934 (Note 3)	Y	N	N
2	Rei Ju Construction Co., Ltd.	ReiYu Green Energy Technology Co., Ltd.	2 (Note 6)	4,633,160 (Note 3)	1,948	-	-	-	% -	7,721,934 (Note 3)	Y	N	N
2	Rei Ju Construction Co., Ltd.	Ryan Developmen t Corp.	2 (Note 6)	4,633,160 (Note 3)	725,000	725,000	560,536	-	% 46.94	7,721,934 (Note 3)	Y	N	N
3	ReiYu Green Energy Technology Co., Ltd.	Rei Ju Construction Co., Ltd.	3 (Note 6)	2,000,000 (Note 4)	24,557	24,557	-	-	% 117.81	3,000,000 (Note 4)	N	Y	N
4	Rei Cheng Construction Co., Ltd.	Rei Ju Construction Co., Ltd.	3 (Note 6)	5,950,000 (Note 5)	4,425,050	3,053,000	-	-	% 5,113.30	8,925,000 (Note 5)	N	Y	N

• Note 1: The total amount of guarantees and endorsements provided by the Company for external parties shall not exceed 120% of its net worth for the current period , and the guarantees and endorsements for a single entity shall not exceed 60% of its net worth for the period.

• Note 2:[Limit on guarantees and endorsements provided by Everwin Investment Co, Ltd.: The total amount provided for a single subsidiary,] whose ordinary shares of more than 90% are directly or indirectly held by the Company, shall not exceed 40% of the Company�s current net value. As for other entities, the total amount provided for any single one of them shall not exceed 25% of the Company�s current net value. For entity holding 100% ordinary share of Everwin Investment Co, Ltd. or companies of which Everwin Investment Co, Ltd. holds 100% ordinary shares, the limit on guarantees and endorsements provided for any single one of them shall not exceed 200% of the current net value of the Company.

• Note 3: The limit on guarantees and endorsements of Rei Ju Construction Co., Ltd.: The total amount provided for external construction projects and a single construction project shall not exceed 15 times and 7.5 times of the total value of the Company�s paid in capital, respectively. The total amount of guarantees and endorsements shall not exceed 5 times of the net value of the Company, and the guarantees and endorsements for a single entity shall not exceed 3 times of the current net value of the Company.

• Note 4:[The limit on guarantees and endorsements provided by ReiYu Green Energy Technology Co., Ltd.: The total amount guarantees for] external construction projects and for the construction projects of a single entity shall not exceed 150 times and 100 times of the total value of the paid in capital, respectively.

• Note 5: The limit on guarantees and endorsements provided by Rei Cheng Construction Co., Ltd.: The total amount guarantees for external construction projects and for the construction projects of a single entity shall not exceed 150 times and 100 times of the total value of the paid in capital, respectively.

• Note 6:[Seven categories of relationship with the endorser/guarantor:]

• Trading counterparty.

• The Company directly or indirectly holds more than 50% voting right.

• Other companies directly or indirectly hold more than 50% voting rights of the Company.

• The Company directly or indirectly holds more than 90% voting right.

• A company that is mutually protected under contractual requirements based on the needs of the contractor.

• A company that is endorsed by all the contributing shareholders in accordance with their shareholding ratio due to joint investment relationship.

• Under the Consumer Protection Act, performance guarantees for pre-sale contracts for companies in the same industry.

• Note 7:[The aforementioned transactions have been eliminated when compiling the consolidated financial statements.]

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Securities held as of December 31, 2021 (excluding investment in subsidiaries, associates and joint ventures):

==> picture [454 x 581] intentionally omitted <==

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

(In Thousands of New Taiwan Dollars)
Category and Ending balance Highest
Name of holder securityname of with companyRelationship Accounttitle Shares/Units(thousands) Carrying value ownership (%)Percentage of Fair value ownership (%)Percentage of Note
Fund:
The Company Taishin 1699 Current financial 2,925 40,013 - % 40,013 1.01 %
Money Market assets at fair value
Fund through profit or
loss
Jih Sun Money 1,334 20,002 - % 20,002 3.91 %
Market Fund
Fund:
Long Bao Co., Ltd. Taishin 1699 1,462 20,002 - % 20,002 - %
Money Market
Fund
Long Fu Real Taishin 1699 2,925 40,005 - % 40,005 - %
Estate Money Market
Development Co., Fund
Ltd.
San Jhih Cih An Taishin 1699 731 10,001 - % 10,001 - %
Yuan Ltd. Money Market
Fund
Dong Hua Taishin 1699 3,656 50,000 - % 50,000 - %
International of Money Market
Golf Recreation Fund
Co., Ltd.
Jih Sun Money 2,669 40,000 - % 40,000 - %
Market Fund
Rei Ju Yuanta Asia 500 4,327 - % 4,327 - % Pledge
Construction Co., Pacific (ex
Ltd. Japan)
Investment Grade
Government
Bond Index Fund
Invesco Quality 16 4,546 - % 4,546 - %
Fixed Maturity
Emerging Market
Bonds 2023
Stock:
The Company M Radio Non current 1,009 4,292 12.32 % 4,292 12.32 % Note 1
Broadcasting financial assets at
CO., Ltd. FVOCI
Widedoctor 538 2,998 19.92 % 2,998 19.92 %
(International)
Enterprise Co.,
Ltd.
J Metrics 600 4,749 2.15 % 4,749 2.15 %
Technology Co.,
Ltd.
Chia Ya 1,200 70,024 8.00 % 70,024 8.00 %
Investment Co.,
Ltd.
New Image 1,283 25,213 4.75 % 25,213 4.75 %
Medical Co., Ltd.
Chang Hong 3,185 19,435 3.24 % 19,435 3.24 %
Energy
Technology Co.,
Ltd.
You Long Substantive 4,487 127,559 17.26 % 127,559 17.26 %
Construction related party
Development
Co., Ltd.
Grand Green 560 8,400 1.18 % 8,400 1.18 % Note 3
Energy Co., Ltd.
Preferred Share 120 2,910 0.30 % 2,910 0.30 %
of Bank of
Kaohsiung, Ltd.
Everwin J Metrics 600 4,749 2.15 % 4,749 2.15 % Note 1
Investment Co, Technology Co.,
Ltd. LtdT
Linkou - 1,127 - % 1,127 - %
Recreation Co.,
Ltd.
Grand Green 940 14,100 2.27 % 14,100 - % Note 3
Energy Co., Ltd.
----- End of picture text -----

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of holder	Category and name of security	Relationship with company	Account title		Ending balance	Ending balance		Highest Percentage of ownership (%)	Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
Rei Ju Construction Co., Ltd.	Long Bon International Co., Ltd.	Ultimate parent company	Non current financial assets at FVOCI	36,609	647,972	% 9.27	647,972	% 9.27	Note 2
	Chia Ya Investment Co., Ltd.			300	17,506	% 2.00	17,506	% 2.00	Note 1
	New Image Medical Co., Ltd.			321	6,307	% 1.19	6,307	% 1.19
	Preferrec share of Tan Shi Construction Co., Ltd.		Non-current financial assets at amortized cost	3,000	79,980	% 00.00	79,980	% 00.00
Gold Coast Golf Co., Ltd.	Preferred Share of Horseshoe International Enterprise Co., Ltd.			42	624	% 0.01	624	% 0.01
Everwin Investment Co., Ltd.	Subordinated Debt of Bank of Panshin			-	160,000	% -	160,000	% 24.61
Long Bao Co., Ltd.	Subordinated Debt of Bank of Panshin			-	70,014	% -	70,014	% -
Long Hui Development Co., Ltd.	Subordinated Debt of Bank of Panshin			-	40,008	% -	40,008	% -

Note 1: The stock is not publicly traded and quoted and was therefore presented according to the appraisal report as a reference.

Note 2: Pursuant to the clauses of the loan agreement, document related to the exercise of pledge of 35,680 thousand shares have been signed to the financial institution.

Note 3: The emerging market stock is presented in its market value on December 31, 2021.

(iv) Individual securities acquired or disposed of with accumulated amount exceeding the lower of NT$300 million or 20% of the capital stock:

the capital stock:	the capital stock:	the capital stock:	the capital stock:	the capital stock:
					(In Thousands of New Taiwan Dollars)
Name of company	Category and name of security	Account name	Name of counter-party	Relationship with the company	Beginning Balance		Purchases		Sales				Ending Balance
					Shares	Amount	Shares	Amount	Shares	Price	Cost	Gain (loss) on disposal	Shares	Amount
The Company	Ta Chen Stainless Pipe Co., Ltd.	Current financial assets at fair value through profit or loss	Non related party	-	15,722	492,113	1,795	188,342 (Note)	17,517	973,307	680,455	292,852	-	-
Everwin Investment Co., Ltd.	Ta Chen Stainless Pipe Co., Ltd.	Current financial assets at fair value through profit or loss	Non related party	-	9,541	298,621	-	100,830 (Note)	9,541	568,953	399,451	169,502	-	-

Note: The purchase amounts for this period includes the valuation adjustments relating to financial assets recognized at fair value.

• (v) Acquisition of individual real estate with amount exceeding the lower of NT$300 million or 20% of the capital stock:

(In Thousands of New Taiwan Dollars)

Name of company	Name of property	Transaction date	Transaction amount	Status of payment	Counter-party	Relationship with the Company	If the counter-party is a related party, disclose the previous transfer information	If the counter-party is a related party, disclose the previous transfer information	If the counter-party is a related party, disclose the previous transfer information	If the counter-party is a related party, disclose the previous transfer information	References for determining price	Purpose of acquisition and current condition	Others
							Owner	Relationship with the Company	Date of transfer	Amount
The Company	Land and building	May 12,2021	921,121	921,121	Global Funeral Services Co., Ltd. R	elated party	Sin Cai International Development Co., Ltd.	Non related party	April 28, 2011	-	Appraisal report	For future operational use	-

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

• (vii) Related-party transactions for purchases and sales with amounts exceeding the lower of NT$300 million or 20% of the capital stock: None

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

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

(In Thousands of New Taiwan Dollars)

Name of company	Counter-party	Nature of relationship	Ending balance	Turnover rate	Ove	rdue	Amounts received in subsequent period	Allowance for bad debts
					Amount	Action taken
The Company	Rei Ju Construction Co., Ltd.	Subsidiary	351,553	Note 1	-		-	-
Everwin Investment Co, Ltd	Rei Ju Construction Co., Ltd.	Associate	200,318	Note 1	-		-	-

Note 1: Accounts Receivable Turnover in Days does not apply, because it is mainly other receivables.

Note 2: The aforementioned transactions have been eliminated when compiling the consolidated financial statements.

(ix) Trading in derivative instruments: None

(x) Business relationships and significant intercompany transactions:

(In Thousands of New Taiwan Dollars)

				(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
No.	Name of company	Name of counter-party	Nature of relationship	Intercompany transactions
				Account name	Amount	Trading terms	Percentage of the consolidated net revenue or total assets
1	Rei Ju Construction Co., Ltd. R	yan Development Corp.	1	Other receivables	121,505	-	0.51%
2	Everwin Investment Co, Ltd D G	ong Hua International of olf Recreation Co., Ltd.	1	Rental revenue	42,869	Monthly billing claim	0.53%

Note 1: Numbers are filled in as follows:

1. �0� represents the parent company

2. Subsidiaries are numbered from �1�

Note 2: Categories of relationship with counterparty are as below:

1. Parent to subsidiary;

2. Subsidiary to parent;

Note 3: The aforementioned transactions have been eliminated in the consolidated financial statements.

(b) Information on investees:

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

(In Thousands of New Taiwan Dollars)

Name of investor	Name of investee	Location	Main businesses and products	Original inve	stment amount	Balance a	s of December 31	, 2021	Highest Percentage of ownership	Net income (losses) of investee	Share of profits/losses of investee	Note
				December 31, 2021	December 31, 2020	Shares (thousands)	Percentage of ownership	Carrying value
The Company	Everwin Investment Co, Ltd.	Taiwan	Investment	1,213,791	1,213,791	244,025	% 100.00	2,986,589	% 100.00	297,795	297,795
	Long Bao Co., Ltd.	Taiwan	Funeral Service	604,250	604,250	60,000	% 100.00	630,296	% 100.00	27,485	27,485
	Long Jee Holding(s) Pte Ltd	Singapore	Oversea property investment and import and export trading	103,692	103,692	17,979	% 96.89	9,949	% 96.89	408	395
	Rei Ju Construction Co., Ltd.	Taiwan	Architecture andcivil engineering	1,105,992	1,105,992	73,928	% 90.10	840,139	% 90.10	230,914	208,568
	Long Fu Real Estate Development Co., Ltd.	Taiwan	Funeral Service	700,000	700,000	70,000	% 100.00	698,816	% 100.00	3,981	3,981
	Long De International Development Co., Ltd.	Taiwan	Investment	1,000	1,000	100	% 100.00	954	% 100.00	(21)	(21)
	Sky Honor International Co.,Ltd.	Taiwan	Funeral Service	13,500	-	1,350	% 45.00	10,677	% 45.00	(6,723)	(2,823)	Associate
	Taisun Enterprise Co., Ltd.	Taiwan	Processing and retailing of food, beverages	2,671,109	-	129,063	% 25.81	3,497,702	% 25.81	591,827	-	Associate Partial pledge
Everwin Investment Co., Ltd.	Long Hui Development Co., Ltd.	Taiwan	Investment	560,000	560,000	56,000	% 100.00	621,955	% 100.00	18,486	Exempt from disclosure
	Dong Hua International of Golf Recreation Co., Ltd. (originally known as �Bao Hui Development Co., Ltd.�)	Taiwan	Exercise facility and amenity	30,000	30,000	3,000	% 100.00	28,037	% 100.00	(2,092)
	Taisun Enterprise Co., Ltd.	Taiwan	Processing and retailing of food, beverage	590,403	-	31,434	% 6.29	851,861	% 6.29	591,827		Associate Partial pledge

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Name of investor	Name of investee	Location	Main businesses and products	Original inve	stment amount	Balance a	s of December 31	, 2021	Highest Percentage of ownership	Net income (losses) of investee	Share of profits/losses of investee	Note
				December 31, 2021	December 31, 2020	Shares (thousands)	Percentage of ownership	Carrying value
Long Fu Real Estate Development Co., Ltd.	San Jhih Cih An Yuan Ltd.	Taiwan	Funeral Service	19	19	-	% 100.00	4,742	% 100.00	4,783	Exempt from disclosure
Long Hui Development Co., Ltd.	Gold Coast Golf Co., Ltd. (originally known as �North Bay Recreation Co., Ltd.�)	Taiwan	Exercise facility and amenity	514,510	444,510	8,947	% 99.41	578,336	% 99.41	15,625
Rei Ju Construction Co., Ltd.	Rei Cheng Construction Co., Ltd.	Taiwan	Architecture andcivil engineering	40,500	40,500	5,950	% 100.00	70,207	% 100.00	3,466
	ReiYu Green Energy Technology Co., Ltd.	Taiwan	Architecture andcivil engineering	18,563	68,563	2,000	% 100.00	20,844	% 100.00	(2,657)
	Ryan Development Corp.	Taiwan	Property investment and development	427,722	307,722	37,000	% 100.00	321,110	% 100.00	(11,752)
	Rei Jhao Engineer Ltd.	Taiwan	Architecture andcivil engineering	990	990	99	% 19.80	1,008	% 19.80	(276)		Associate
	Rei Ying Construction Co, Ltd.	Taiwan	Property investment and development	3,900	3,900	390	% 39.00	1,753	% 39.00	(2,595)
ReiYu Green Energy Technology Co., Ltd.	Sheng Ji Interior Decoration Co., Ltd.	Taiwan	Interior Decoration	20,000	20,000	2,000	% 100.00	21,319	% 100.00	(4,274)
	ReBio Green Innovation Co., Ltd.	Taiwan	Environmental Engineering	2,000	2,000	200	% 100.00	227	% 100.00	(29)

Note: The aforementioned transactions have been eliminated when compiling the consolidated financial statements

• (c) Information on investment in mainland China:

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

					(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)	(In Thousands of New Taiwan Dollars)
Name of investee	Main businesses and products	Total amount of paid-in capital	Method of investment	Accumulated outflow of investment from Taiwan as of January 1, 2020	Investment flows		Accumulated outflow of investment from Taiwan as of December 31, 2021	Net income (losses) of the investee	Percentage of ownership	Highest percentage of ownership	Investment income (losses)	Book value	Highest Percentage of ownership	Accumu-lated remittance of earnings in currentperiod
					Outflow	Inflow
Xiamen Rei Ju Construction Engineer Co.	Construction consultancy	35,984 USD1,300	(Note 1 )	32,109 USD1,16	0 -	-	32,109 USD1,160	(4,956)	89.23%	89.23%	(4,423) (Note 2)	577	-	-

Note 1: Direct investment in Mainland China.

Note 2: The recognition of investment gains and losses was based on the financial statements audited by the parent�s certified public accountants.

• (ii) Limitation on investment in Mainland China:

Company Name	Accumulated Investment in Mainland China as of December 31, 2021	Investment Amounts Authorized by Investment Commission, MOEA	Upper Limit on Investment
Rei Ju Construction Co., Ltd.	32,109 (USD 1,160 )	32,109 (USD 1,160 )	926,632 (Note 1)

Note 1: The limit is calculated as follows: net asset value of subsidiary×60%=NTD1,544,387 thousand×60%=NTD926,632 thousand.

• (iii) Significant transactions: None

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

• (d) Major shareholders:

Major shareholders:
Shareholding Shareholder�s Name	Shares	Percentage
Global Funeral Services Co., Ltd.	69,899,080	% 17.70
Fortune Base Development Co., Ltd.	58,364,520	% 14.78
Ontario Investment Co, Ltd.	37,933,600	% 9.61
Rei Ju Construction Co, Ltd.	36,608,592	% 9.27
Yi Fong Investment Co, Ltd.	34,542,100	% 8.75
You Long Construction Development Co., Ltd.	20,080,840	% 5.08

• Note: The information on major shareholders in this table is calculated by CHIP on the last business day at the end of each quarter, and the shareholders hold more than 5% of the common shares and preferred shares that have been delivered (including treasury shares) without physical registration. As for the share capital recorded in the company's financial report and the actual number of shares delivered by the company, there may be differences or differences due to different calculation bases.

(14) Segment information:

• (a) General information

There are four reportable segments: construction, investment, funeral, and recreation. The construction segment engages in construction projects; the investment segment engages in investment in financial instruments; the funeral department engages in funeral services and others; recreation segment provides sports facilities.

The Group�s reported segments consist of strategic business units which provide different products and services. Since each strategic business unit requires different technology and marketing strategies, it must be administered separately. Most of the business units were acquired, and the original management teams are still operating.

• (b) Reportable segment profit or loss, segment assets, segment liabilities, and their measurement and reconciliations

The Group uses the internal management report that the chief operating decision maker reviews as the basis to determine resource allocation and make a performance evaluation. The internal management report includes profit before taxation, but not including any extraordinary activity and foreign exchange gain or losses because taxation, extraordinary activity, and foreign exchange gain or losses are managed on a group basis, and hence they are not able to be allocated to each reportable segment. In addition, not all reportable segments include depreciation and amortization of significant non cash items. The reportable amount is similar to that of the report used by the chief operating decision maker.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The Group�s segment financial information is as follows:

Revenue: Revenue from external customers Intersegment revenues Total revenues Interest revenue Finance costs Depreciation and amortization Share of profit (loss) of associates and joint ventures accounted for using equity method Profit or loss of reportable segment Revenue: Revenue from external customers Intersegment revenues Total revenues Interest revenue Finance costs Depreciation and amortization Share of profit (loss) of associates and joint ventures accounted for using equity method Profit or loss of reportable segment	For the Year Ended December 31, 2021	For the Year Ended December 31, 2021	For the Year Ended December 31, 2021	For the Year Ended December 31, 2021		Total 11,425,624 - 11,425,624 7,932 138,466 66,307 (3,890) 1,023,510 Total 10,776,324 - 10,776,324 28,447 112,282 62,965 (1,221) 1,231,520
	Construction Construction segment Property development segment Investment segment Funeral services segment Recreation segment $ 10,998,448 74,163 - 165,859 187,154 69,570 58,652 - 3,689 - $ 11,068,018 132,815 - 169,548 187,154 6,118 1,944 1,696 363 40 38,340 67,743 26,272 - 8,340 34,036 16,027 1,769 3,365 11,110 - - 535,380 - - $ 279,191 (12,147) 1,269,563 45,980 13,727 For the Year Ended December 31, 2020			Recreation segment 187,154 -	Reconciliation and elimination - (131,911) (131,911) (2,229) (2,229) - (539,270) (572,804)
	Construction segment $ 10,998,448 69,570 $ 11,068,018 6,118 38,340 34,036 - $ 279,191
		Investment segment - - - 473 14,792 - 456,891 1,309,738	Funeral services segment 148,038 - 148,038 151 - 15,197 - 15,935	Recreation segment 83,388 -
	Construction segment $ 10,526,061 75,592 $ 10,601,653 5,176 22,477 33,033 - $ 380,361

Note: Reconciliation and elimination are mainly adjustments to relevant consolidated write offs in the preparation of the consolidated financial statements.

(Continued)

LONG BON INTERNATIONAL CO., LTD. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(c) Geographic information

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

Geographical information Revenue from external customers: Taiwan China Total Non-current assets: Taiwan China Total	2021 $ 11,415,281 10,343 $ 11,425,624 December 31, 2021 $ 11,944,465 652 $ 11,945,117	2020
		10,766,949 9,375
		10,776,324 December 31, 2020
		6,921,711 1,020
		6,922,731

Non-current assets include investments accounted for using equity method, property, plant and equipment, right-of-use assets, investment property, intangible assets, and other assets, not including financial instruments, deferred tax assets, pension fund assets, and rights arising from an insurance contract (non-current).

(d) Major customers:

Client A of construction segment Client B of construction segment Client C of construction segment Client D of construction segment	2021 $ 2,164,746 1,532,790 621,203 346,057 $ 4,664,796	2020
		479,282 829,402 1,266,771 1,098,139
		3,673,594