LP - Annual Report 2020 | FinancialReports.eu

Stock Code: 1447

Li Peng Enterprise Corporation Limited and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2020 and 2019 and Independent Auditors’ Report

Address: F6, No. 162, Songjiang Road, Taipei Tel: (02)21002888

§DIRECTORY§

				FINANCIAL
				STATEMENT
		ITEM	PAGE	NOTE
1.	Cover		1	-
2.	Directory		2	-
3.	Affiliates’ Consolidated Financial Report and Representation		3	-
	Letter
4.	Independent Auditor’s Report		4-7	-
5.	Consolidated Balance Sheet		8	-
6.	Consolidated Statements of Comprehensive Income		9-10	-
7.	Consolidated Statements of Changes in Equity		11	-
8.	Consolidated Statements of Cash Flows		12-13	-
9.	Consolidated Financial Statements
	a.	Company History	14	1
	b.	The Authorization of Financial Statements	15	2
	c.	Application of New and Revised International Financial	15-16	3
		Reporting Standards
	d.	Major Accounting Policies Descriptions	16-32	4
	e.	Critical Accounting Judgments and Key Sources of	32	5
		Estimation, and Uncertainty
	f.	Major Accounting Item Descriptions	32-55	6-23
	g.	Trading with Related Parties	61-67	28
	h.	Pledged Assets	67	29
	i.	Significant Contingent Liabilities and Unrecognized	67-68	30
		Commitments
	j.	Loss from Major Disasters	-	-
	k.	Major Events After Reporting Period	-	-
	l.	Others	55-61`、`68-70	24-27, 31-32
	m.	Other Disclosure
		(1) Related information on major transactions	70-71	33
		(2) Related information on reinvestment	70-71	33
		(3) Related information on investments in China	71	33
		(4) Information on major shareholders	71	33
	n.	Segment Information	71-74	34
10.	Affiliates’ Consolidated Financial Statements		91-93	-

REPRESENTATION LETTER

The entities that are required to be included in the combined financial statements of Li Peng Enterprise Corporation Limited as of and for the year ended December 31, 2020, 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 the International Financial Reporting Standard 10, “Consolidated Financial Statements.” In addition, the information required to be disclosed in the combined financial statements is included in the consolidated financial statements. Consequently, Li Peng Enterprise Corporation Limited and Subsidiaries do not prepare a separate set of combined financial statements.

Sincerely yours,

LI PENG ENTERPRISE CORPORATION LIMITED

Kuo, Shao-Yi

Chairman

29 March, 2021

Independent Auditor’s Report

To Li Peng Enterprise Corporation Limited

Opinion

We have audited the accompanying consolidated financial statements of Li Peng Enterprise Corporation Limited and its subsidiaries (the “Company”), which comprise the consolidated balance sheets as of December 31, 2020 and 2019, and the consolidated statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the consolidated financial statements, including a summary of significant accounting policies. In our opinion, the consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2020 and 2019, 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 the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

Basis for Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and 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 Company in accordance with The Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the consolidated financial statements for the year ended December 31, 2020. 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.

Key audit matters for the Company’s consolidated financial statements for the year ended December 31, 2020 are stated as follows:

The Actual Occurrence of Sales Revenue

The Company comprises of nylon department, weaving department, and trading department. The sales revenue of the nylon department is the highest among all. Nylon products are mainly traded as commodity and the sales condition varies from client to client. The overall sales revenue of nylon department has shown a decrease in the past year, however, the sales generated from some of the clients have increased. Thus, the auditor will report the transaction condition as non-added letters of credit, and list the sales revenue of nylon products as an item of the key audit matters. Refer to Note 4 to the consolidated financial statements regarding revenue recognition principle.

Our audit procedures related to the evaluation of the above-mentioned key audit matter, include the understanding and sampling of selected internal control design with effectively execution to have identified the transaction of sales revenue.

Other Matter

The Company had repared the parent company only financial statements of 2019 and 2020 as for reference, provided with auditor’s report by the Company’s accountants unmodified opinion on the matter.

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 the IFRS, IAS, IFRIC, and 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 Company’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 Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including members of the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

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

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

the audit. We also:

Identify and assess the risks of material misstatement of the consolidated financial statement, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’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 Company and subsidiaries to cease operations.
Evaluate the overall presentation, structure, and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company 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 significant in the audit of the consolidated financial statements for the year ended December 31, 2020 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 Wu,Ke-Chang and Chiu,Ming-Yu.

Wu, Ke-Chang Chiu, Ming-Yu Deloitte & Touche Deloitte & Touche Taipei, Taiwan Taipei, Taiwan Republic of China Republic of China

Financial Supervisory Commission ROC vetted Document no. 1000028068

Financial Supervisory Commission ROC vetted Document no. 0930160267

March 31, 2021

Li Peng Enterprise Co Ltd and Subsidiaries Consolidated Balance Sheets

Dec 31, 2019, 2020

Unit `：` Thousands of NTD

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Dec 31, 2020 Dec 31, 2019
Code Assets Amount ％ Amount ％
Current Assets
1100 Cash and cash equivalents (Note 6 ） $ 1,359,763 8 $ 2,833,122 16
1110 Financial assets at fair value through profit or loss - current （ Note 7 ） 491,974 3 301,097 2
1150 Notes receivable, net （ Note 8 ） 33,170 - 88,747 1
1160 Notes receivable from related parties, net （ Note 28 ） 52,264 - 13,641 -
1170 Accounts receivable, net （ Note 8 ） 1,782,834 10 1,775,432 10
1180 Accounts receivable from related parties, net （ Note 28 ） 161,759 1 51,954 -
1210 Loan to related parties （ Note 28 ） 552,800 3 164,000 1
130X Inventory （ Note 9 ） 2,080,015 12 2,553,973 14
1410 Prepayments 56,927 - 65,564 -
1476 Other financial assets - current （ Note 6 ） 174,551 1 60,634 -
1479 Other current assets 5,868 - 7,803 -
11XX Total current assets 6,751,925 38 7,915,967 44
Non-current assets
1510 Financial assets at fair value through profit or loss － non-current （ Note 7 ） 11,825 - 13,447 -
1517 Financial assets at fair value through other comprehensive income － non-current
（ Note 10 ） 2,358,662 13 1,824,018 10
1550 Investment adjustments for Using Equity Method （ Note 12 ） 2,613,301 15 1,782,110 10
1600 Property, plant, equipment （ Note 13 ） 5,550,279 31 6,041,544 34
1755 Right of use asset （ Note 3 and 14 ） 934 - 1,191 -
1780 Other intangible assets （ Note 15 ） 8,055 - 9,697 -
1840 Deferred tax assets （ Note 22 ） 365,958 2 244,046 2
1915 Prepayment for equipment 169,784 1 60,157 -
1990 Other non-current assets 14,084 - 21,324 -
15XX Total non-current assets 11,092,882 62 9,997,534 56
1XXX Total Assets $ 17,844,807 100 $ 17,913,501 100
Code Liability and Equity
Current liability
2100 Short-term loan （ Note 16 ） $ 2,044,000 11 $ 4,050,000 23
2110 Short-term corporate bonds payable （ Note 16 ） 1,120,000 6 620,000 4
2120 Financial liabilities at fair value through profit or loss （ Note 7 ） - - 27,094 -
2150 Notes payable 54,765 - 59,179 -
2160 Notes payable – related parties （ Note 28 ） 8,705 - 17,985 -
2170 Accounts payable 961,089 5 426,406 2
2180 Accounts payable － related parties （ Note 28 ） 97,135 1 64,776 -
2219 Other payable （ Note 28 ） 472,257 3 500,661 3
2220 Loan from related parties （ Note 28 ） 85,000 1 120,000 1
2230 Income tax payable in current period （ Note 22 ） 2,803 - 1,830 -
2250 Liability preparation － current 20,372 - 21,653 -
2280 Lease liability － current （ Note 3 and 14 ） 107 - 232 -
2320 Long-term loan due in a year （ Note 17 ） 155,000 1 350,000 2
2399 Other current liability 135,187 1 140,515 1
21XX Total current liabilities 5,156,420 29 6,400,331 36
Non-current liability
2540 Long-term loan （ Note 17 ） 1,875,000 11 1,100,000 6
2570 Deferred income tax liability （ Note 22 ） 146,650 1 147,499 1
2580 Lease liability － non-current （ Note 3 and 14 ） 541 - 962 -
2640 Accrued pension liability, net － non-current （ Note 18 ） 235,805 1 262,699 1
2670 Other non-current liability 1,176 - 1,475 -
25XX Total non-current liabilities 2,259,172 13 1,512,635 8
2XXX Total liability 7,415,592 42 7,912,966 44
Equity Attributable to Shareholders of the Parent （ Note 19 ）
3110 Common stock 9,144,872 51 9,144,872 51
3200 Capital reserve 134,620 1 134,044 1
Retained earning
3310 Legal reserve 525,527 3 525,527 3
3320 Special reserve 602,637 4 602,637 3
3350 Accrued loss ( 662,075 ) ( 4 ) ( 248,943 ) ( 1 )
3300 Total retained earnings 466,089 3 879,221 5
3400 Other equity 168,713 1 ( 456,101 ) ( 3 )
3500 Treasury stock ( 432,403 ) ( 3 ) ( 432,403 ) ( 2 )
31XX Total Equity to Shareholders of the Parent 9,481,891 53 9,269,633 52
36XX Non-controlling interests （ Note 19 ） 947,324 5 730,902 4
3XXX Total equity 10,429,215 58 10,000,535 56
Total of Liability and Equity $ 17,844,807 100 $ 17,913,501 100
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The accompanying notes are an integral part of the consolidated financial statements.

Chairman: Kuo, Shao-Yi Manager ： Kuo, Shao-Yi Head of Accounting ： Ko, Pei-Chun

Li Peng Enterprise Co Ltd and Subsidiaries

Consolidated Statements of Comprehensive Income

Jan 1 to Dec 31, 2019, 2020 Unit ： Thousands of NTD Except loss per share

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2020 2019
Code Amount ％ Amount ％
4000 Operating revenue （ Note 20, 28 ） $ 13,559,461 100 $ 14,579,347 100
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5000 Operating cost`（`Note 9, 28`）` 5900 Operating margin 5910 Unrealized profit on sales to associates ( 5920 Realized profit on sales to associates 5950 Realized operating margin Operating expense`（`Note 28`）` 6100 Sales expense 6200 Management expense 6300 R&D expense 6450 Expected credit (gain) loss on reversal of impairment loss ( 6000 Total operating expenses 6900 Operating net loss ( Non-operating income and expenses 7100 Interest income`（`Note 21, 28`）` 7010 Other income`（`Note 21, 28`）` 7020 Other profit and loss`（`Note 21, 28`）` ( 7050 Finance cost`（`Note 21`）` ( 7060 Share of profits of associates 7000 Total non-operating income and loss (	13,324,652 234,809 313 ) 72 234,568 287,097 195,625 112,090 3,508) 591,304 356,736) ( 45,307 124,861 306,966 ) ( 56,497 ) 17,172 176,123) (	98 2 - ( - 2 2 2 1 - 5 3) ( - 1 2 ) ( - ( - ( 1) (	14,201,182 378,165 72 ) - 378,093 379,520 192,048 116,310 68 687,946 309,853) ( 65,248 125,177 105,917 ) ( 63,737 ) 23,665) 2,894)	97 3 - - 3 3 1 1 - 5 2) - 1 1 ) - - -

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2020 2019
Code Amount ％ Amount ％
7900 Net loss before tax ( $ 532,859 ) ( 4 ) ( $ 312,747 ) ( 2 )
7950 Income tax profit （ Note 4, 22 ） 118,526 1 68,696 -
8200 Net loss of the year ( 414,333 ) ( 3 ) ( 244,051 ) ( 2 )
Other comprehensive income
(net)
8310 Uncategorized items profit
and loss ：
8311 Measure on defined benefit
plans 8,963 - ( 21,024 ) -
8316 Unrealized gain/(loss) on
investments in equity
instruments at fair value
through other
comprehensive income 703,868 5 ( 55,878 ) ( 1 )
8320 Share of other
comprehensive gain of
associates and joint
ventures 125,153 1 ( 45,164 ) -
8360 Items that may be reclassified
subsequently to profit or loss ：
8361 Exchange differences
resulting from translation
on foreign operations ( 7,112 ) - ( 10,958 ) -
8370 Shares of other
comprehensive gain of
associates - - 3,985 -
8300 Total other comprehensive
income of the year 830,872 6 ( 129,039 ) ( 1 )
8500 Total comprehensive income of
the year $ 416,539 3 ( $ 373,090 ) ( 3 )
Net loss attributable to ：
8610 Shareholder of the parent ( $ 412,009 ) ( 3 ) ( $ 249,366 ) ( 2 )
8620 Non-controlling interests ( 2,324 ) - 5,315 -
8600 ( $ 414,333 ) ( 3 ) ( $ 244,051 ) ( 2 )
Comprehensive income
attributable to ：
8710 Shareholders of the parent $ 211,682 2 ( $ 362,246 ) ( 3 )
8720 Non-controlling interests 204,857 1 ( 10,844 ) -
8700 $ 416,539 3 ( $ 373,090 ) ( 3 )
Basic loss per share （ Note 23 ）
9710 Basic ( $ 0.48 ) ( $ 0.29 )
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The accompanying notes are an integral part of the consolidated financial statements.

Chairman: Kuo, Shao-Yi

Manager ： Kuo, Shao-Yi

Head of Accounting ： Ko, Pei-Chun

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Unit ： Thousands of NTD

Li Peng Enterprise Co Ltd and Subsidiaries

Consolidated Statements of Changes in Equity

Jan 1 to Dec 31, 2019, 2020

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Equity Attributable to Shareholders of the Parent
Others
Unrealized gain/loss on financial assets at
Foreign
Retained Earning Organization Fair value through comprehensive income
Unappropriated Using equity Using equity
Share Capital Earnings Financial Report method method
（ Unappropriated Exchange Non- Controlling
Code Share （ Thousands ） Amount Capital Reserve Legal Reserve Special Reserve deficit ） difference Parent company Subsidiaries Associates Treasury Stock Total interests Total equity
A1 Balance as of Jan 1, 2019 914,487 $ 9,144,872 $ 117,015 $ 509,332 $ 276,208 $ 546,762 ( $ 13,565 ) $ 143,169 ( $ 309,252 ) ( $ 184,390 ) ( $ 432,403 ) $ 9,797,748 $ 741,746 $ 10,539,494
Appropriations of earnings in 2018
B1 Allowance of legal reserve - - - 16,195 - ( 16,195 ) - - - - - - - -
B3 Allowance of special reserve - - - - 326,429 ( 326,429 ) - - - - - - - -
B5 Cash dividends to the shareholders - - - - - ( 182,898 ) - - - - - ( 182,898 ) - ( 182,898 )
Changes to other capital reserve ：
C7 Change in associates using equity
method - - 293 - - - - - - - - 293 - 293
M1 Cash dividends from parent company to
subsidiary - - 16,736 - - - - - - - - 16,736 - 16,736
D1 Net loss in 2019 - - - - - ( 249,366 ) - - - - - ( 249,366 ) 5,315 ( 244,051 )
D3 Other comprehensive income in 2019 - - - - - ( 20,817 ) ( 10,958 ) ( 21,387 ) ( 18,332 ) ( 41,386 ) - ( 112,880 ) ( 16,159 ) ( 129,039 )
D5 Total comprehensive income in 2019 - - - - - ( 270,183 ) ( 10,958 ) ( 21,387 ) ( 18,332 ) ( 41,386 ) - ( 362,246 ) ( 10,844 ) ( 373,090 )
Z1 Balance as of Dec 31, 2019 914,487 9,144,872 134,044 525,527 602,637 ( 248,943 ) ( 24,523 ) 121,782 ( 327,584 ) ( 225,776 ) ( 432,403 ) 9,269,633 730,902 10,000,535
Changes to other capital reserve ：
C7 Change in associates using equity
method - - 141 - - - - - - - - 141 - 141
M7 Changes to equity ownership of
subsidiary (Note 25) - - 435 - - - - - - - - 435 11,565 12,000
Q1 Subsidiary and associates’ disposal of
equity tool through other
comprehensive income - - - - - ( 14,363 ) - - ( 6,116 ) 20,479 - - - -
D1 Net Loss in 2020 - - - - - ( 412,009 ) - - - - - ( 412,009 ) ( 2,324 ) ( 414,333 )
D3 Other comprehensive income in 2020 - - - - - 13,240 ( 7,112 ) 261,635 235,052 120,876 - 623,691 207,181 830,872
D5 Total comprehensive income in 2020 - - - - - ( 398,769 ) ( 7,112 ) 261,635 235,052 120,876 - 211,682 204,857 416,539
Z1 Balance as of Dec 31, 2020 914,487 $ 9,144,872 $ 134,620 $ 525,527 $ 602,637 ( $ 662,075 ) ( $ 31,635 ) $ 383,417 ( $ 98,648 ) ( $ 84,421 ) ( $ 432,403 ) $ 9,481,891 $ 947,324 $ 10,429,215
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The accompanying notes are an integral part of the consolidated financial statements.

Chairman: Kuo, Shao-Yi Manager ： Kuo, Shao-Yi Head of Accounting ： Ko, Pei-Chun

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Li Peng Enterprise Co Ltd and Subsidiaries Consolidated Statements of Cash Flows Jan 1 to Dec 31, 2019, 2020

Unit `：` Thousands of NTD

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Code 2020 2019
Cash Flows From Operating Activities
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A10000 Profit (loss) before income tax ( A20010 Provided by (used in) operating activities: A20100 Depreciation A20200 Amortization A20300 Expected credit (gain) loss on reversal of impairment loss ( A29900 Amortized prepayment A20400 Financial assets and liability at fair value through (profit) or loss ( A20900 Finance costs A21200 Interest income ( A21300 Dividend income ( A22300 Share of income to associates using equity method ( A22500 Loss (gain) on disposal or retirement of property, plant, equipment ( A23100 Gain on disposal of investment, net ( A23200 Gain on disposal of investments accounted for using equity method, net ( A23800 Reversal of impairment loss on inventory ( A23900 Unrealized profit on sales to associates A24100 Net (gain) loss on foreign exchange ( Changes in operating assets and liabilities A31130 Notes receivable A31115 Collect financial assets at fair value through profit or loss ( A31150 Accounts receivable ( A31200 Inventory A31230 Prepayments ( A31240 Other current assets A31250 Other financial assets ( A32130 Notes payable ( A32150 Accounts payable A32180 Other accounts payable ( A32200 Liability preparation ( A32240 Accrued pension liabilities, net ( A32230 Other current liability ( A33000 Cash generated from operations A33100 Interest income A33200 Dividend income A33200 Dividend income from associates	$ 532,859 ) ( 617,864 6,472 3,508 ) 71,701 29,449 ) 56,497 45,307 ) ( 1,738 ) ( 17,172 ) 668 ) 341 ) ( 51 ) 71,402 ) ( 241 11,910 ) 17,354 172,192 ) 67,397 ) ( 545,361 67,940 ) ( 1,945 ( 113,027 ) 13,694 ) ( 571,015 ( 15,161 ) 1,347 ) 17,931 ) ( 37,244) 668,112 47,131 1,738 41,872	$ 312,747 ) 614,156 9,011 68 94,388 9,694 63,737 65,248 ) 78,083 ) 23,665 1,307 791 ) - 370,509 ) 72 68,531 274,278 121,495 125,311 ) 1,303,561 59,873 ) 3,492 ) 19,079 223,888 ) 1,045,483 ) 56,530 3,730 27,253 ) 23,948 374,572 65,025 78,083 29,523

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Code 2020 2019
A33300 Interest payable ( $ 57,308 ) ( $ 63,950 )
A33500 Income tax payable ( 6,449 ) ( 13,811 )
AAAA Cash inflow from operating
activities 695,096 469,442
Cash Flows from Investing Activities
B00010 Acquisition of financial assets at fair value
through other comprehensive income ( 49,361 ) ( 36,609 )
B00020 Disposal of financial assets at fair value
through other comprehensive income 218,584 -
B01800 Acquisition of associates ( 758,415 ) ( 15,200 )
B01900 Disposal of associates 15,083 -
B02200 Cash inflow from acquisition of
subsidiary, net 392 -
B05900 Decrease (increase) in loan to related
parties receivable ( 404,500 ) 32,000
B02700 Acquisition of property, plant, equipment ( 245,335 ) ( 368,768 )
B02800 Disposal of property, plant, equipment 1,052 1,290
B03800 (Increase) decrease in refundable deposits ( 1 ) 677
B04500 Acquisition of intangible asset ( 3,193 ) ( 5,921 )
BBBB Cash outflow from investment activity ( 1,225,694 ) ( 392,531 )
Cash Flows From Financing Activities
C00100 Increase (decrease) in short-term loan ( 2,006,000 ) 1,592,000
C00500 Proceeds from short-term bills payable 500,000 516,000
C01600 Lend long-term loan 875,000 -
C01700 Repay long-term loan ( 295,000 ) ( 1,284,700 )
C04020 Lease principal repayment ( 463 ) ( 57 )
C03000 Increase (decrease) in refundable
deposits ( 298 ) 688
C03700 Increase (decrease) in loan to related
parties receivable ( 35,000 ) 7,000
C04500 Dividend payment to shareholders - ( 166,162 )
C05800 Changes to non-controlling interests 12,000 -
CCCC Cash inflows (outflows) from
financing activities ( 949,761 ) 664,769
DDDD Effect of exchange rate on cash or cash
equivalents 7,000 ( 38,314 )
EEEE Net Increase (Decrease) in Cash and Cash
Equivalents ( 1,473,359 ) 703,366
E00100 Balance of cash and cash equivalents, beginning
of the year 2,833,122 2,129,756
E00200 Balance of cash and cash equivalents, end
of the year $ 1,359,763 $ 2,833,122
The accompanying notes are an integral part of the consolidated financial statements.
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Chairman: Kuo, Shao-Yi Manager ： Kuo, Shao-Yi Head of Accounting ： Ko, Pei-Chun

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Li Peng Enterprise Corporation Limited and Subsidiaries Consolidated Financial Statement Note Jan 1 to Dec 31, 2019, 2020

（ Otherwise stated, amounts indicated are in thousands of New Taiwanese Dollars ）

Consolidated Company History

Li Peng Enterprise Corporation Limited (the “Company”), which was established in August 1975, produced various types of printed papers, decal papers, paper products, and printing boards. In 1985, dyeing plant was built; in 1988, weaving plant was then added to produce synthetic, natural woven fabric, cotton, and printed textile. In 1999, additional nylon plants were built, which were to produce synthetic fibers and nylon filament yarns that would be made into products for trading. The Company’s factories are located in Yangmei district in Taoyuan city, and another in Fanyuan township in Changhua county.

The Company was listed and traded on the Taiwan Stock Exchange in January 1992.

The Company’s major shareholder is Lealea Enterprise Co. Ltd., with 15.89% of the company’s shares as of December 31, 2019 and 2020.

In Talent Investments Limited （ In Talent ） was set up by the Company in Samoa, which mainly operates reinvestment business.

Libolon (Shanghai) International Trading Co., Ltd., (Libolon Shanghai Co.) was set up by In Talent in Shanghai, Mainland China, which operates the wholesale business of synthetic cloths and fabric.

Li Mao Investment Co. Ltd. (Li Mao Co.), Hung Hsing Investment Co. Ltd. (Hung Hsing Co.), and Li Shing Investment Co. Ltd. (Li Shing Co.) operate the reinvestment businesses on behalf of the various production businesses, securities investment company, and bank.

Libolon Energy Co. Ltd.’s (Libolon Energy Co.) main business includes renewable energy, self-generated power equipment and cogeneration business.

Eton Petrochemical Co. Ltd.’s (Eton Petrochemical Co.) main business is wholesaling of chemical ingredients.

Eton Petrochemical International Co. Ltd. (Eton International Co.) was set up by Eton Co. in Samoa as a reinvestment. Its main business is wholesaling of chemical ingredients.

14 -

The Company’s functional currency and the currency stated in the consolidated financial statements are both New Taiwanese Dollar.

The Authorization of Financial Statements

The accompanying consolidated financial statements were approved and authorized for issue by the Board of Directors on March 29, 2021.

Application of New and Revised International Financial Reporting Standards
(a) Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC). IFRS 16 amendment to “Provisions on Covid-19 Pandemic Related Rental Concession “
- Consolidated company chose a practical expediency to negotiate with the renter about the rental concession based on the amendment related to Covid-19 pandemic. Matters related to accounting policy can be referred to Note 4. Before applying the amendment to the matter, consolidated company shall make judgment based on whether the rental negotiation is also appropriate with the rules of lease amendment. Consolidated company started applying the amendment since January 1, 2020. As the abovementioned rental negotiation had its effects only in 2020, it did not affect retain earnings on January 1, 2020 retrospectively.
(b) IFRS endorsed by the Financial Supervisory Commission (FSC) in 2021

New, Revised or Amended Standards and

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Interpretations Effective Date Issued by IASB
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New, Revised or Amended Standards and Interpretations	Effective Date Issued by IASB
Amendments to IFRS 4 “IFRS 9 Extension of	Effective on date of announcement
Temporary Exemption”
Amendments to IFRS 9, IAS 39, IFRS 7, IFRS	Effective during the period of annual
4, and IFRS 16 “Interest Rate Benchmark	reporting after January 1 2021
Reform – Phase 2”

New, Revised or Amended Standards and Interpretations	Effective Date Issued by IASB (Note 1)
“Annual Improvements 2018-2020” Amendments to IFRS 3” Reference to the Conceptual Framework” Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture”	January 1, 2022`（`Note 2`）` January 1, 2022`（`Note 3`）` To be determined

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Effective Date Issued by New, Revised or Amended Standards and Interpretations IASB (Note 1) Amendments to IFRS 17 January 1, 2023 Amendments to IAS 1” Classification of Liabilities as January 1, 2023 Current or Non-current”

Amendments to IAS 1 “Disclosure of Accounting Policy” January 1, 2023 （ Note 6 ） Amendments to IAS 8” Definition of Accounting January 1, 2023 （ Note 7 ） Estimates”

Amendments to IAS 16” Property, Plant, and January 1, 2022 （ Note 4 ） Equipment – Proceeds before Intended Use”
Amendments to IAS 37 “Onerous Contracts – Cost of January 1, 2022 （ Note 5 ） Fulfilling a Contract”
Note 1 ： Otherwise stated, the above New, Revised, Amended Standards and Interpretations shall be effective since the start date of annual reporting.
Note 2 ： Amendments to IFRS 9 is applicable to the of exchange of financial liabilities or modification of terms during annual reporting starting from January 1, 2022; amendments to IAS41 “Agriculture” are applicable to the evaluation at fair value during annual reporting starting from January 1, 2022; amendments to IFRS1 “First time to adapt IFRS1” is applicable to the period of annual reporting starting from January 1, 2022 retrospectively.
Note 3 ： As long as the acquisition date of company consolidation starts after January 1, 2022 during annual reporting, it is applicable to the amendment.
Note 4 ： Starting from January 1, 2021, as the operation meets the expectation of the management, the required location, plant condition, property and equipment shall apply to the amendment.
Note 5 ： After January 1, 2022, all contracts shall be applicable to the amendment if they have not fulfilled the obligations.
Note 6 ： Any postponement during annual reporting after January 1, 2023 shall be applicable to the amendment.
Note 7 ： All changes to accounting estimation and modification on the accounting policies happen during annual reporting after January 1, 2023 shall be applicable to the amendment.

As of the date the accompanying consolidated financial statements were authorized for issue, the consolidated company continues in evaluating the impact on its financial position and financial performance as a result of the initial adoption of the aforementioned standards or interpretations and related applicable period. The related impact will be disclosed when the consolidated company completes the evaluation.

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4. Major Accounting Policies Descriptions

(a) Statement of Compliance
The accompanying consolidated financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the IFRSs endorsed by the FSC with the effective dates.
(b) Basis of Preparation

The accompanying consolidated financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair values, and the net confirmed benefit liabilities recognized by the current value of the confirmed benefit obligations minus the fair value of the planned assets. Historical cost is generally based on the fair value of the consideration given in exchange for the assets.

The evaluation of fair value based on the observability and importance of relevant input value is classified into gradings from 1[st] to 3[rd] grade:

1[st] grade input value ： the quotation of equivalent value of the assets or liabilities in the active market on evaluation date (unadjusted).
2[nd] grade input value: the observable input value (besides the quotation of 1[st] grade) on assets and liabilities direct (value) or indirect (derived value).
3[rd] grade input value ： the unobservable input value on assets or liabilities.
(c) Classification of Current and Noncurrent Assets and Liabilities
- Current Assets include ：
Assets held for trading purposes;
Expected to be converted to cash, sold or consumed within 12 months from the end of the reporting period ； and
Cash and cash equivalent (not including the restricted users for exchange or settle liabilities after over 12 months from the balance sheet date.)

Current Liabilities include `：`

Liabilities held for trading purposes;
Liabilities expected to be settled within 12 months from the balance sheet date (including liabilities from long-term refinancing or readjusting payment agreement even if it’s after the balance sheet date until the approved release date of financial report; and
The deadline to settle liabilities cannot be deferred unconditionally to later than 12 months after the balance sheet date. The terms of the liability may depend on the counterparty's choice, the issuance of equity instruments to cause its liquidation does not affect the classification.

Items that aren’t current assets or liabilities as mentioned above, would be classified as non-current assets or liabilities.

(d) Basis of Consolidation The consolidated financial statements incorporate the financial statements of the consolidated company and entities controlled by the consolidated company (its subsidiaries). The income and expenses of subsidiaries acquired or disposed of are
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included in the consolidated statement of comprehensive income from the effective date of acquisition and up to the effective date of disposal. When necessary, adjustments are made to the financial statements of subsidiaries to ensure their accounting policies are aligning with those used by the parent. All intra-group transactions, balances, income, and expenses are eliminated in full on consolidation. Total comprehensive income of subsidiaries is attributed to the shareholders of the parent and to the non-controlling interests even if this results in the non-controlling interests having a deficit balance.

Changes in the consolidated company’s ownership interests in subsidiaries that do not result in the consolidated company losing control over the subsidiaries are accounted for as equity transactions. The carrying amounts of the consolidated company’s interests and the non-controlling interests are adjusted to reflect the changes in their relative interests in the subsidiaries. Any difference between the amount by which the non-controlling interests are adjusted and the fair value of the consideration paid or received is recognized directly in equity and attributed to shareholders of the parent.

The details on items, ratio of shares owned, and operations of the subsidiaries can be referred to Note ELEVEN and Table SEVEN.

(e) Business Combination
Business combination is through acquisition methods. Expenses related to acquisitions are listed as expenses when expenses incurred from rendering of services as it happened.

Goodwill is the total amount of the fair value of the transfer, the amount of non-controlling interests of the acquiree, and the fair value of the acquiree’s previously held equity at the acquisition date, the net measure of identifiable assets acquired, and liabilities assumed beyond the date of acquisition.

The acquiree has the current ownership of equity and is entitled to pro rata non-controlling interests in the acquiree’s net assets at the time of liquidation, which is measured by fair value. Other non-controlling interests are measured at fair value.

A business combination concluded in stages is based on the fair value on the acquisition date to re-measure the equity of the acquiree that the merging company has previously held. If any profit or loss arises as a result, it is recognized as a profit or loss. The amount recognized in other comprehensive profits and losses before the acquisition date due to the previously held equity of the acquiree is recognized on the same basis as if the amalgamating consolidated company directly disposes of its previously held equity.

(f) Foreign Currencies In preparing the financial statements of each individual consolidated entity, transactions in currencies other than the entity’s functional currency (foreign currencies) is recognized at the rates of exchange prevailing at the dates of the transactions.
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At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date, such exchange differences are recognized in profit or loss in the period in which they arise.

Amount receivable or payable with relation to the consolidated company’s foreign operations’ currency, the liquidation of the item is currently neither planned nor possible in the foreseeable future (so it constitutes a part of the net investment in the foreign operations), the exchange difference is originally recognized as other comprehensive gains and losses, and when disposing net investment, reclassify from equity to profit and loss.

Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined.

Exchange differences arising on the retranslation of non-monetary items are included in profit or loss for the year except for exchange differences arising on the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary items that are measured in terms of historical cost in foreign currencies use exchange rates prevailing on trading day, not retranslated.

As preparing the consolidated financial statements, assets and liabilities of the Company’s foreign operations are translated into NTD using exchange rates prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, if any, are recognized in other comprehensive income and accumulated in equity (attributed to the consolidated company’s non-controlling interests as appropriate).

(g) Inventories Inventories include raw materials, materials, finished goods, and processed goods. Inventories are stated at the lower of cost or net realizable value. Inventories are recorded at standard cost and adjusted to approximate weighted-average cost at the end of the reporting period. Net realizable value represents the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventory cost is calculated by the weighted average method.
(h) Investment in Associates Investment accounted for using equity method are investments in associates, which the consolidated company has significant influence over, they are not subsidiaries.

The consolidated company invested in associates using equity method.

Under the equity method, an investment in an associate is initially recognized in the consolidated statements of financial position at cost and adjusted thereafter to recognize the consolidated company’s share of profit or loss and other comprehensive income of the associates as well as the distribution received. The

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consolidated company also recognizes its share in the changes in the equities of associates.

Any excess of the cost of acquisition over the consolidated company’s share of the net fair value of the identifiable assets, liabilities and contingent liabilities of an associate recognized at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment. The entire carrying amount of the investment (including goodwill) cannot be amortized. Any excess of the consolidated company’s share of the net fair value of the identifiable assets, liabilities, and contingent liabilities over the cost of acquisition, after reassessment, is recognized immediately in profit or loss.

When the consolidated company 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 consolidated company’s proportionate interest in the net assets of the associate. The consolidated company records such a difference as an adjustment to investments with the corresponding amount charged or credited to capital surplus. If the consolidated company’s ownership interest is reduced due to the additional subscription to the shares of associate by other investors, the proportionate amount of the gains or losses previously recognized in other comprehensive income in relation to that associate shall 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.

When the associated company issues new shares, if the consolidated company fails to subscribe according to the shareholding ratio, which causes the shareholding ratio to change, and consequently increases or decreases the net equity value of the investment, the amount of increase or decrease shall be adjusted to the capital reserve - use the equity method to recognize the changes in the net equity of associates and the investment using the equity method. If the shareholding ratio is not subscribed nor obtained, which results in a decrease in the ownership and interest of the associated company, the amount recognized in the other comprehensive profit and loss related to the associated company shall be reclassified according to the reduced portion, and the basis of accounting treatment is related to the associated company, if the relevant assets or liabilities are directly disposed of, the basis must be the same; if the adjustment in the preceding paragraph should be debited to the capital surplus, and the balance of the capital reserve generated by the investment using the equity method is insufficient, the difference is debited to the retained earnings.

When the consolidated company’s share of losses in the associated company equals or exceeds its equity in the associated company (including the carrying amount of the investment in the associated company under the equity method and other long-term interests that are essentially part of the consolidated company’s net investment in the associated company), that is, stop recognizing further losses. The consolidated company only recognizes additional losses and liabilities within the scope of incurred statutory obligations, deduced obligations, or payments on behalf of associates.

When assessing an impairment, the consolidated company regards the overall book value of the investment (including goodwill) as a single asset, compares the recoverable amount with the carrying amount, and conducts an impairment testing.

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The recognized impairment loss is not allocated to the component of the investment book value. Any assets, including goodwill, any reversal of the impairment loss shall be recognized within the scope of the subsequent increase in the recoverable amount of the investment.

The consolidated company ceases to use the equity method on the day when its investment ceases to be an associated company, and its retained equity in the original associated company is measured at fair value, recorded in the current profit and loss. In addition, for all amounts recognized in other comprehensive profit and loss related to the associated company, the basis of accounting treatment is the same as the basis that the associated company must abide by when and if it directly disposes the assets or liabilities. If an investment in an associated company becomes an investment in a joint venture, or an investment in a joint venture becomes an investment in an associated company, the consolidated company will continue to use the equity method without re-evaluating the retained equity.

The profit and loss arising from the upstream, downstream, and side-current transactions between the consolidated company and the associated company are recognized in the consolidated financial report only to the extent that the consolidated company has no relation to the equity of the associated company.

(i) Property, Plant and Equipment

Property, plant and equipment are listed as expenses, measured at cost less accumulated depreciation and accumulated impairment.

Property, plant and equipment in the course of construction for production, supply or administrative purposes are carried at cost, less any recognized impairment loss. Costs include any incremental costs that are directly attributable to the construction or acquisition of the item of property, plant and equipment. Such assets are classified to the appropriate categories of property, plant and equipment when completed and ready for intended use. Depreciation of these assets, on the same basis as other identical categories of property, plant and equipment, commences when the assets are available for their intended use.

Land is not depreciated, other property, plant and equipment’s residual values over their useful lives, and depreciation are computed using the straight-line method, estimate the depreciated value individually based on every significant part. The consolidated company shall estimate and review their useful lives, residual values, and depreciation method at the end of each reporting period, with the effect of any changes in estimates accounted for on a prospective basis.

Any gain or loss arising on the disposal or retirement of an item of property, plant and equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognized in profit or loss.

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(j) Intangible Assets
Other separately acquired intangible assets with finite useful lives are carried at cost less accumulated amortization and accumulated impairment losses. Amortization is recognized using the straight-line method over the estimated useful lives, finite useful lives, residual values, and amortization method should be reviewed at the end of each reporting period by the consolidated company, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with uncertainty useful lives are presented as cost less accumulated impairment losses.

As intangible assets are being removed, the difference between the net disposal value and the asset’s book value is recognized in the current profit and loss.

(k) Impairment of Property, Plant and Equipment, Right-of-use Assets, and Intangible Assets (besides goodwill)
The consolidated company reviews the carrying amounts of its property, plant and equipment, right-of-use assets, and intangible assets (besides goodwill) to determine whether there is any indication that those assets have suffered an impairment loss on each balance sheet date. If any such indication exists, the recoverable amount of the assets is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the consolidated company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Shared assets are allocated to individual cash-generating units for which a reasonable and consistent allocation basis can be identified.

For intangible assets that don’t have definite useful life and are not yet available for use, impairment testing shall be carried out at least annually and when there are signs of impairment.

The recoverable amount is the higher of the fair value minus cost of sale and its use value. If the recoverable amount of an individual asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, and the impairment loss is recognized in profit and loss.

When an impairment loss subsequently reverses, the carrying amount of the asset or a cash-generating unit is adjusted to the revised recoverable amount, but the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in the previous year (minus amortization or depreciation). A reversal of an impairment loss is recognized immediately in profit or loss.

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(l) Financial Instruments

Financial assets and financial liabilities are recognized on the consolidated balance sheet when the consolidated company becomes a party to the contract terms of the instrument.

In the initial recognition of financial assets and financial liabilities, if financial assets or financial liabilities are not measured at fair value through profit and loss, they are measured at fair value plus trading costs directly attributable to the acquisition or issuance of financial assets or financial liabilities. Trading costs directly attributable to the acquisition or issuance of financial assets or financial liabilities measured at fair value through profit and loss are immediately recognized as profit and loss.

1. Financial Asset

Conventional transactions of financial assets are recognized and delisted by accounting on the trading day.
(1) Types of Measurement
Types of financial assets held by the consolidated company are financial assets measured at fair value through profit and loss, financial assets measured at amortized cost, and equity instrument investment measured at fair value through other comprehensive gains and losses.
A. Financial Assets Measured at Fair Value Through Profit and Loss Financial assets measured at fair value through profit and loss include mandatory fair value through profit and loss and financial assets designated as fair value through profit and loss. Mandatory financial assets measured at fair value through profit or loss include equity instrument investments that the amalgamating company has not specified to be measured at fair value through other comprehensive profit and loss, and debt instrument investments that are not classified as measured at amortized cost or measured at fair value through other comprehensive profit and loss.
- Financial assets are designated at the time of initial recognition as measured at fair value through profit and loss, if the designation can eliminate or significantly reduce measurement or recognition inconsistencies.
- Financial assets measured at fair value through profit and loss are the dividends and interests generated by fair value measurement, that are recognized in other income and interest income respectively, and the benefits or losses generated by the re-measurement are recognized in other income and loss. Please refer to Note TWENTY-SEVEN for the method of determining fair value.
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B. Financial Assets at Amortized Cost

If the financial assets invested by the consolidated company meet the following two conditions at the same time, they are classified as financial assets measured at amortized cost:

a. Held under a certain business model, the purpose of this model is to hold financial assets to collect contractual cash flows; and
b. The terms of the contract generate cash flows on a specific date, and these cash flows are all interests on the payment of the principal and the amount of principal in circulation.

Financial assets measured at amortized cost (including cash and cash equivalents, accounts receivable, notes receivable and other receivables measured at amortized cost) after initial recognition, are measured by the total book amount determined by the effective interest method minus the amortized cost of any impairment loss, and any foreign currency exchange gains and losses are recognized as in profit and loss.

Except for the following two cases, interest income is calculated by multiplying the effective interest rate by the total book value of financial assets ：

a. For purchased or created credit-impaired financial assets, interest income is calculated by multiplying the effective interest rate after credit adjustment by the amortized cost of the financial assets.
b. For financial assets that are not purchased or originated from credit impairment, but subsequently become credit impairment, calculate the interest income by multiplying the effective interest rate by the amortized cost of the financial asset from the next reporting period after the credit impairment.

Credit impaired financial assets refer to the issuer or debtor who has experienced major financial difficulties, breach of contract, the debtor is likely to apply for bankruptcy or other financial reorganization, or the active market for financial assets disappears due to financial difficulties.

Cash equivalents include time deposits that are highly liquidated and can be converted into fixed cash at any time within 3 months from the date of acquisition, and the risk of changes in value is very low, which is used to meet short-term cash commitments.

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C. Investment in Equity Instruments Measured at Fair Value Through Other Comprehensive Income
During initial recognition, the consolidated company can make an irrevocable choice to invest in equity instruments that are not held for trading and not recognized by the purchaser of a business merger, and designated to be measured at fair value through other comprehensive income.

Equity instrument investments measured at fair value through other comprehensive income are measured at fair value, and subsequent changes in fair value are reported in other comprehensive income and accumulated in other equity. At the time of investment disposal, the accumulated profits and losses are directly transferred to retained earnings and are not reclassified as profits and losses.

Dividends derived from equity instrument investments measured at fair value through other comprehensive income are recognized in the profit and loss when the rights of payment collection of the consolidated company were established unless the dividends clearly represent partial investment cost recovery.

(2) Impairment Loss of Financial Assets and Contractual Assets

The consolidated company assesses the financial assets (including accounts receivable) measured at amortized cost based on expected credit losses on each balance sheet date, debt instrument investments measured at fair value through other comprehensive income, operating lease receivables, and impairment loss of contractual assets.

Accounts receivable, operating lease receivables, and contractual assets are all recognized as loss allowance based on expected credit losses during the duration. For other financial assets, first assess whether there is a significant higher credit risk since the initial recognition. If there is no significant higher risk, the loss allowance is recognized based on the 12-month expected credit loss; if the risk has increased significantly, the loss allowance is recognized based on the duration of the expected credit loss.

Expected credit loss is the weighted average credit loss based on the risk of breach of contract. The 12-month expected credit loss refers to the expected credit loss caused by the possible breach of contract event of the financial instrument within 12 months after the reporting date, and the lifetime expected credit loss represents the expected credit loss caused by all possible breach of contract events during the expected lifetime of the financial instrument.

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The consolidated company is for the purpose of internal credit risk management, and without considering the collateral held, when it is determined that there is internal or external information showing that the debtor is unable to pay off the debt, it represents that the financial asset has breached the contract. The impairment loss of all financial assets is reduced by the allowance account to reduce its carrying amount, but the loss allowance of debt instrument investment measured at fair value through other comprehensive income is recognized in other comprehensive income and does not reduce its carrying amount.

(3) Delisting of Financial Assets

The consolidated company only delists financial assets when the contractual rights from the cash flow of financial assets have lapsed, or the financial assets have been transferred and almost all the risks and rewards of the ownership of the assets have been transferred to other companies.

When a financial asset measured at amortized cost is delisted, the difference between its book value and the consideration received is recognized in profit or loss. When the debt instrument investment measured at fair value through other comprehensive income is delisted, the difference between the carrying amount and the consideration received plus the sum of any accumulated profits or losses that have been recognized in other comprehensive income is recognized in profit and loss. When equity instrument investments measured at fair value through other comprehensive income are delisted, the accumulated profits and losses are directly transferred to retained earnings and are not reclassified as profits and losses.

Financial Liabilities
(1) Subsequent Measurement
- Except for the cases below, all financial liabilities are measured at amortized cost using the effective interest method: Financial Liabilities Measured at Fair Value Through Profit and Loss Financial liabilities measured at fair value through profit and loss include held for trading and designated as fair value through profit and loss. Interested derived from financial liabilities held for trading and
- designated as fair value through profit and loss are recognized as finance cost, other profits or losses arise from remeasurement are recognized in other profits and losses. Please refer to Note TWNETY-SEVEN for the method of determining the fair value.
(2) Delisting of Financial Liabilities

When delisting financial liabilities, the difference between its carrying amount and the paid amount (including any transferred non-cash assets or liabilities assumed) is recognized as profit or loss.

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Derivative Financial Instruments
Derivatives signed by the consolidated company include forward foreign exchange contracts, interest rate exchanges and currency exchanges, which are used to manage the consolidated company's interest rate and exchange rate risks.

Derivative instruments are initially recognized at fair value when the derivative instrument contract is signed, and subsequently re-measured at fair value on the balance sheet date. The profits or losses resulting from subsequent measurement are directly included in the profit and loss, but they are designated as derivatives of effective hedging instruments. The point at which tools are recognized in profit or loss will depend on the nature of the hedging relationship. When the fair value of the derivative is positive, it is classified as a financial asset; when the fair value is negative, it is classified as a financial liability.

If derivative instruments are embedded in the asset master contract within the scope of IFRS 9 "Financial Instruments", the overall contract determines the classification of financial assets. If a derivative is embedded in an asset master contract that is not within the scope of IFRS 9 (such as embedded in a financial liability master contract), and if the embedded derivative meets the definition of a derivative, its risk and characteristics are not closely related to the risk and characteristics of the master contract, when the combined contract is not measured at fair value through profit or loss, the derivative is regarded as a separate derivative.

(m) Preparation of Liabilities

The amount recognized as a liability reserve is based on the risk and uncertainty of the obligation and is the best estimation of the expenditure required to settle the obligation on the balance sheet date. The liability provision is measured by the discounted value of the estimated cash flow of the obligated settlement.

(n) Income Recognition

After the consolidated company identifies performance obligations in the customer’s contract, it allocates the trading price to each performance obligation, and recognizes revenue when each performance obligation is met.

Commodity Sales Revenue

Commodity sales revenue is generated from customers who have the right to determine prices and use the commodities and are responsible for resale, customers bear the consequences of commodity obsolescence. The consolidated company recognizes revenue and accounts receivable at this point.

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When the material is removed for processing, the control of the ownership of the processed commodity has not been transferred, so the income is not recognized when the material is removed.

(o) Lease

The consolidated company assesses whether the contract belongs to (or contains) a lease on the date of signing contract.

The consolidated company as Lessor When the lease clause transfers almost all the risks and returns attached to the ownership of the asset to the lessee, it is classified as a financial lease. All other leases are classified as operating leases.

Under operating leases, lease payments after deduction of lease incentives are recognized as income on a straight-line basis during the relevant lease period. The original direct cost incurred in obtaining an operating lease is added to the book value of the underlying asset and recognized as an expense during the lease period on a straight-line basis.

When the lease includes both land and building elements, the consolidated company assesses whether almost all the risks and returns attached to the ownership of each element have been transferred to the lessee to assess whether each element is classified as a financial lease or an operating lease. Lease payments are apportioned to land and buildings based on the relative proportion of the fair value of the land and building lease rights on the date of signing contract. If the lease payment can be reliably allocated to these two elements, each element is treated according to the applicable lease classification. If the lease payment cannot be allocated to these two elements reliably, the overall lease is classified as a finance lease, but if both of these elements clearly meet the operating lease standards, the overall lease is classified as an operating lease.

The consolidated company as Lessee Except for lease payments for low-value underlying asset leases and short-term leases that are subject to the applicable recognition exemption, the lease payments are recognized as expenses on a straight-line basis during the lease period, and other leases are recognized as the right-of-use asset and lease liability on the lease start date.

The right-of-use asset is originally measured at cost (including the original measured amount of the lease liability, the lease payment paid before the lease start date minus the lease incentives received, the original direct cost and the estimated cost of restoring the underlying asset), and the subsequent cost minus accumulated depreciation and measure the amount after the accumulated

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impairment loss, as well as adjust the remeasurement amount of the lease liability.

The right-of-use assets are separately expressed on the consolidated balance sheet.

The right-of-use asset is depreciated on a straight-line basis from the lease start date to the end of the service life or the expiration of the lease period, whichever is earlier.

The lease liability is originally measured by the present value of the lease payment (including fixed payment). If the implicit interest rate of the lease can be easily determined, the lease payment is discounted using that interest rate. If the interest rate is not easily determined, use the lessee's incremental borrowing interest rate.

Subsequently, lease liability is measured on the amortized cost basis using the effective interest method, and the interest expense is amortized during the lease period.

The consolidated company and the lessor conducted rental negotiations directly related to the Covid-19 pandemic, adjusted the rent due before June 30, 2021, resulting in rent reduction. These negotiations did not significantly change other lease terms. The consolidated company chooses to adopt practical expedients to deal with the rental negotiation that meets the aforementioned conditions and does not assess whether the negotiation is a lease modification, but recognizes the reduction in lease payments in the profit and loss when the concession event or situation occurs, and relatively reduces the lease liability.

(p) Borrowing Cost

The borrowing cost directly attributable to the acquisition, construction or production of a qualified asset is a part of the cost of the asset until almost all necessary activities for the asset to reach its intended use or sale status have been accomplished.

Specific borrowings, such as investment income earned by temporary investment before the capital expenditure that meets the requirements, are deducted from the borrowing cost that meets the capitalization conditions.

Except for the above, all other borrowing costs are recognized as profit or loss in the current period.

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(q) Government Subsidies

Government subsidies are recognized only when it is reasonably certain that the combined company will comply with the conditions attached to the government subsidies and will receive such subsidies.

The government subsidies related to income are recognized in the profit and loss on a systematic basis during the period when the related costs that they intend to compensate are recognized as expenses in the merging company.

If the government subsidy is used to compensate for the expenses or losses that have occurred or is for the purpose of providing immediate financial support to the consolidated company and has no future related costs, it shall be recognized in the profit and loss during the period when it can be received.

(r) Employee Benefits

Short-term Employee Benefits
Short-term employee benefit-related liabilities are measured by the expected non-discounted amount of cash paid in exchange for employee services.
Retirement Benefits

The determination of the retirement fund for the retirement plan is to recognize the amount of the retirement fund that should be provided as an expense during the employee's service period.

The definite benefit cost (including service cost, net interest and remeasurement) of the definite benefit retirement plan is calculated using the estimated unit benefit method. Service costs, including current service costs and net interest on net defined benefit liabilities (assets) were recognized as employee benefit expenses when incurred. Re-measurement (including actuarial gains and losses and remuneration of planned assets after interest deduction) are recognized when incurred. It is included in other comprehensive profit and loss and included in retained earnings and is not reclassified to profit or loss in subsequent periods.

The net definite benefit liability (asset) is the shortfall (remaining) of the definite benefit retirement plan. The net determined welfare assets shall not exceed the present value of the refund of the withdrawal from the plan or the reduction of the future withdrawal.

The retirement funds of Libolon (Shanghai Co.), Li Mao Co., Hung Hsing Co., Li Shing Co., Eton Petrochemical Co. and Libolon Energy Co. adopt a fixed allocation and retirement method.

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(s) Treasury Stock

When Li Peng Enterprise buys back the issued shares as treasury shares, it debits the cost of treasury shares as a deduction of shareholders' equity.

The transfer of treasury stocks to employees shall be handled in accordance with International Financial Reporting Standards Bulletin No. 2 "Share Basic Benefits".

When canceling treasury stocks, credit "treasury stocks" and debit "capital reserve-stock premium" and "share capital" in proportion to the equity. If the book value of treasury stocks is higher than the total of face value and stock premium, the difference will be offset against the capital reserve generated by treasury stocks of the same type. If there is insufficient, the remaining surplus will be debited; otherwise, the difference will be credited to treasury stocks of the same type with capital reserve generated by the transaction.

The book value of treasury stocks is calculated using the weighted average method.

(t) Income Tax

Income tax expense is the sum of current income tax and deferred income tax.

Current Income Tax
The consolidated company determines the current income (loss) in accordance with the laws and regulations established by each income tax reporting jurisdiction and calculates the payable (recoverable) income tax based on it. The income tax on unappropriated earnings calculated in accordance with the provisions of the Income Tax Law of the Republic of China is subject to additional income tax, which is recognized in the annual shareholders' meeting. The adjustment of income tax payable in previous years shall be included in current income tax.

2.Deferred Income Tax

Deferred income tax is calculated based on the temporary difference between the book value of assets and liabilities and the tax basis for calculating taxable income.

Deferred income tax liabilities are generally recognized for all taxable temporary differences, while deferred income tax assets are likely to have taxable income for deduction of temporary differences, loss deductions or purchase of machinery and equipment and research the income tax deductions for development and other expenditures are recognized.

Taxable temporary differences related to investment in subsidiaries and related companies are recognized as deferred income tax liabilities. However, if the consolidated company can control the timing of the reversion of the temporary differences, and the temporary differences are likely to not be in the foreseeable future. Except those who will return. The deductible temporary differences related to this type of investment will be recognized as deferred income tax only if it is likely to have sufficient taxable income to realize the temporary differences, and within the scope expected to return in the foreseeable future assets.

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The carrying amount of deferred income tax assets is reviewed on each balance sheet date, and the carrying amount is reduced for those that no longer have sufficient taxable income to recover all or part of their assets. For those that have not been recognized as deferred income tax assets, they are also reviewed on each balance sheet date, and if they are likely to generate taxable income in the future for recovering all or part of their assets, the book amount will be increased.

Deferred income tax assets and liabilities are measured by the current tax rate for the expected debt settlement or asset realization. The tax rate is based on the tax rate and tax law that had been legislated or substantively legislated on the balance sheet date. The measurement of deferred income tax liabilities and assets reflects the tax consequences arising from the way the consolidated company expects to recover or settle the carrying amount of its assets and liabilities on the balance sheet date.

3.Current and Deferred Income Tax

Current and deferred income taxes are recognized in profit or loss, but current and deferred income taxes related to items recognized in other comprehensive profit or loss or directly included in equity are recognized in other comprehensive profit or loss or directly included in equity.

Critical Accounting Judgments and Key Sources of Estimation and Uncertainty When the consolidated company adopts accounting policies, management must make relevant judgments, estimates and assumptions based on experience and other relevant factors for the difficulty of obtaining relevant information from other sources. Actual results may differ from estimations.

The management will continue to review the estimations and basic assumptions. If the revision of the estimation only affects the current period, it shall be recognized in the current period of the revision. If the revision of accounting estimations affects both the current period and the future period, it shall be recognized in the current and the future periods of the revision.

Cash and Cash Equivalents

Cash and Cash Equivalents
Cash and deposit in banks Bank cheques and current saving Cash equivalent Short-term bills Bank foreign currency time deposits with maturity in 3 months	Dec 31, 2020 $ 1,482 800,539 170,880 386,862 $ 1,359,763	Dec 31, 2019
			$ 1,132 288,080 1,094,270 1,449,640 $ 2,833,122

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As of December 31, 2020, there were bank foreign currency time deposits of NT$113,920 thousand with a maturity period of more than 3 months, which were accounted for under other financial current assets.

As of December 31, 2019 and 2020, the following time deposits are pledged, and other financial assets are listed under the liquidity account-under the current items (Please refer to Note TWENTY-NINE ） .

Time deposits	Dec 31, 2020 $ 2,000	Dec 31, 2019 $ 2,000	Purpose
			Deposit for natural gas

Financial Instruments Measured at Fair Value Through Profit and Loss

Financial assets mandatorily measured at FVTPL-current Non-derivative financial assets `－`domestic listed(OTC) stocks `－`fund beneficiary certificate `－`financial products Hybrid financial instruments `－`Structured deposits Financial assets mandatorily measured at FVTPL – non-current Non-derivative financial assets `－`domestic unlisted (not OTC) common stocks `－`foreign unlisted (not OTC) common stocks Financial liabilities mandatorily measured at FVTPL-current Derivative instrument`（`no hedging specified`）` `－`Foreign exchange contract	Dec 31, 2020 $ 101,160 119,125 173,591 98,098 $ 491,974 $ 11,395 430 $ 11,825 $ -	Dec 31, 2019	Dec 31, 2019
			$ 58,104 - 238,867 4,126 $ 301,097 $ 13,017 430 $ 13,447 $ 27,094

The unexpired foreign exchange contracts that did not adopt hedging accounting on the balance sheet date are as follows:

Dec 31, 2019

Currency Duration Contract Sum （ thousands ） Rate USD to NTD 01.14.2020-01.21.2020 USD 148,000 ／ NTD 4,470,340 30.18 ～ 30.25

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In 2020 and 2019, the net profits and losses of financial products from the current financial assets (liabilities) measured by the fair value of the profits and losses were measured at a net profit of NT$ 29,449 thousand and a net loss of NT$ 9,694 thousand, respectively.

8. Notes and Accounts Receivable

Notes and Accounts Receivable
Notes receivable Measured by cost after amortization Total book value less`：`allowance for impairment loss Accounts receivable Measured by cost after amortization Total book value Less`：`allowance for impairment loss	Dec 31, 2020 $ 33,470 ( 300) $ 33,170 Dec 31, 2020 $ 1,790,100 ( 7,266) $ 1,782,834	Dec 31, 2019
		$ 89,447 ( 700) $ 88,747 Dec 31, 2019
	(	(	$ 1,785,805 10,373) $ 1,775,432

Accounts Receivable

In principle, the credit period of the consolidated company to customers is from 30 days to 180 days on the monthly settlement, and the accounts receivable are not interest-bearing. In addition to the actual credit impairment losses of individual customers, the consolidated company refers to past experience, considers the financial status of individual customers and their respective industries, competitive advantages and prospects, and categorizes individual customers into different risk assessment groups and according to the respective group, the loss rate is recognized as an allowance for impairment loss.

To reduce the credit risk, the management of the consolidated company assigns a dedicated team to be responsible for the determination of credit limits, credit approval and other monitoring procedures to ensure that appropriate actions have been taken in the recovery of overdue receivables. In addition, the consolidated company will review the recoverable amounts of receivables one by one on the balance sheet date to ensure that the unrecoverable receivables have been properly deducted accordingly. Thus, the management of Li Peng Enterprise believes that the credit risk of the consolidated company has been significantly reduced.

The consolidated company measures the accounts and notes receivable (not including related parties), the allowance for impairment loss is as follows (the consolidated company does the assessment on the basis of accounting date) ：

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Dec 31, 2020

Dec 31, 2020
Expected credit loss rate Total book value Allowance for impairment loss (lifetime expected credit loss`）` Cost after amortization Dec 31, 2019 Expected credit loss rate Total book value Allowance for impairment loss (lifetime expected credit loss`）` Cost after amortization		0`～`60days		61`～`90days		91`～`120days	Over 121days			Total
	(	0.5%`～`1% $ 1,387,672 5,796) $ 1,381,876 0`～`60days	(	0.5%`～`1% $ 229,848 933) $ 228,915 61`～`90days	(	0.5%`～`1% $ 177,779 722) $ 177,057 91`～`120days	0.5%`～`1% $ 28,271 ( 115) $ 28,156 Over 121days		(	$ 1,823,570 7,566) $ 1,816,004 Total
	(	0.5%`～`1% $ 1,250,265 7,443) $ 1,242,822	(	0.5%`～`1% $ 338,446 1,966) $ 336,480	(	0.5%`～`1% $ 244,418 1,420) $ 242,998	(	0.5%`～`1% $ 42,123 244) $ 41,879	(	$ 1,875,252 11,073) $ 1,864,179

Information on the changes of allowance loss of accounts and notes receivable is as follow:

follow:
Opening balance Add`：`The current period (reversal) is listed as impairment loss Foreign currency exchange difference Closing balance Inventories Raw materials Materials Raw materials in transit Processed goods Finished goods Product inventory Inventory in transit	2020 $ 11,073 ( 3,508 ) 1 $ 7,566 Dec 31, 2020 $ 424,235 73,826 232,865 576,479 461,901 4,327 306,382 $ 2,080,015		2019
		$ 11,048 68 ( 43) $ 11,073 Dec 31, 2019
			$ 555,888 71,770 297,463 783,120 813,309 2,832 29,591 $ 2,553,973

The inventory-related cost of goods sold in 2020 and 2019 were NT$13,324,652 thousand and NT$14,201,182 thousand, respectively.

Operating costs for 2020 and 2019 included $NT71,402 thousand and NT$370,509 thousand, respectively, from the rising inventory prices.

The profit from the rebound in the net realizable value of inventories in 2020 and 2019 was mainly due to the rebound in the prices of raw materials and finished products and

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the removal of inventories that were originally listed as depreciation losses.

Due to the impact of the new Covid-19 pandemic, the relevant expenditures during the shutdown period of some production lines have been fully included as current costs.

Financial assets measured at fair value through other comprehensive profits and losses Dec 31, 2020 Dec 31, 2019

Equity instrument investment measured at fair value through other comprehensive profits and losses - non-current Domestic listed stocks $ 2,358,662 $ 1,824,018

The consolidated company invests in the aforementioned equity instruments for mid/long-term hold, and therefore chooses to designate these investments as measured at fair value through other comprehensive profits and losses.

On December 31, 2020 and 2019, there were investments of NT$431,732 thousand and NT$313,006 thousand in equity instruments measured at fair value through other comprehensive profits and losses, which were provided as collateral for the issuance of short-term notes, but as of December 31, 2020 and 2019, the quota has not been used, please refer to Note TWNETY-NINE.

11. Subsidiaries

The preparation of this consolidated financial report is as follows ：

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% of Share hold
2020 2019
Investor Subsidiaries Business Type Dec 31 Dec 31
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Investor	Subsidiaries	Business Type	Dec 31	Dec 31
LiPeng Enterprise	In Talent	Reinvestments	100%	100%
`〃`	Li Mao Co.	Reinvestments in productions, bonds, and banking	53.38%	53.38%
`〃`	Hung Hsing Co.	`〃`	53.02%	53.02%
`〃`	Li Shing Co.	`〃`	53%	53%
`〃`	Libolon Energy Co.	Renewable energy self-use power generation	70%	-
		equipment and cogeneration industry
`〃`	Eton Petrochemical	Chemical raw material wholesale	75%	-
	Co.
In Talent	Libolon (Shanghai)	Wholesale of rayon fabrics, fabrics, and sales of	100%	100%
		tangible goods
Eton Petrochemical	Eton International Co.	Chemical raw material wholesale	100%	-
Co.

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12. Investments Using Equity Method Invested Associates

Investments Using Equity Method Invested Associates
Significant Associate PT. INDONESIA LIBOLON FIBER SYSTEM Insignificant Associate Significant Associates PT. INDONESIA LIBOLON FIBER SYSTEM	Dec 31, 2020 Dec 31, 2019 $ 752,312 $ - 1,860,989 1,782,110 $ 2,613,301 $ 1,782,110 %of equityand votingrights held	Dec 31, 2019

	Dec 31, 2020 30%	Dec 31, 2019
		-

For information on the businesses, main location of operation and country of registration of the above-mentioned associates, please refer to the attached Table "Name, Location, and Related Information of Investees" in attached Table SEVEN.

The associates’ first-tier fair value information in the public market is as follows`：`	The associates’ first-tier fair value information in the public market is as follows`：`	The associates’ first-tier fair value information in the public market is as follows`：`
C o m p a n y n a m e	Dec 31, 2020	Dec 31, 2019
Rich Development Co., Ltd.	$ 536,737	$ 539,293

The consolidated company adopts equity measurement for all the above-listed associates.

The following summary of financial information is prepared on the basis of the IFRSs financial reports of each associate, and has reflected the adjustments made when the equity method is adopted.

PT. INDONESIA LIBOLON FIBER SYSTEM

PT. INDONESIA LIBOLON FIBER SYSTEM
Current assets Non- current assets Current liabilities Non- current liabilities Equity Ratio of the share held by the consolidated company The consolidated company’s rights Goodwill Invested book value Operating income	Dec 31,2020
	$ 524,765 2,261,270 ( 1,046,810 ) ( 78,049) $ 1,661,176 30% $ 498,353 253,959 $ 752,312 May 1 to Dec 31, 2020 $ 431,622

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Current net profit Other comprehensive income Total comprehensive income	May 1 to Dec 31, 2020 $ 35,566 ( 10,401) $ 25,165
	(

Since the company has obtained the fair value of the identifiable net assets of PT. INDONESIA LIBOLON FIBER SYSTEM, which has yet to be completed in the purchase price allocation report, the goodwill dated December 31, 2020 is the tentative balance.

Summarized Information on Each Insignificant Associates `：`

Consolidated company’s share Continuing business unit’s net profit (loss) for the year Other comprehensive income Total comprehensive income		2020 $ 14,039 159,494 $ 173,533		2019
				( $ 23,665 ) ( 41,214) $ 64,879 )

The consolidated company’s investment using the equity method and its share of profit and loss and other comprehensive profit and loss, the financial statements of Rich Development Co. Ltd., Fu Li Express Co. Ltd. and PT. INDONESIA LIBOLON FIBER SYSTEM are not verified by the consolidated company’s accountants for visa verification, but by other accountants.

13. Property, Plant and Equipment

Property, Plant and Equipment
Owned land Land improvement Building Machinery equipment Transportation Office equipment Other equipment Rental assets Unfinished construction		Dec 31, 2020 $ 1,746,786 8,691 1,629,047 1,776,975 25,136 4,942 340,236 - 18,466 $ 5,550,279		Dec 31, 2019
				$ 1,746,786 10,489 1,713,190 2,159,265 33,780 2,278 372,410 234 3,112 $ 6,041,544

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Land Machinery Office Unfinished
Owned Land Improvement Building Equipment Transportation Equipment Other Equipment Lease Assets Construction Total
Cost
Jan 1, 2019 balance $ 1,698,288 $ 377 $ 3,119,753 $ 10,084,996 $ 101,285 $ 45,233 $ 2,335,236 $ 14,686 $ 2,822 $ 17,402,676
Additions 12,265 - 3,058 36,598 5,520 - 12,891 - 294,247 364,579
Disposals - - ( 7,165 ) ( 41,581 ) ( 1,393 ) ( 989 ) ( 15,137 ) - - ( 66,265 )
Account transfer 36,233 10,789 502 212,175 3,200 - 31,058 - ( 293,957 ) -
Net exchange difference - - ( 2,446 ) - ( 147 ) ( 3 ) - - - ( 2,596 )
Dec 31, 2019 balance $ 1,746,786 $ 11,166 $ 3,113,702 $ 10,292,188 $ 108,465 $ 44,241 $ 2,364,048 $ 14,686 $ 3,112 $ 17,698,394
Jan 1, 2020 balance $ 1,746,786 $ 11,166 $ 3,113,702 $ 10,292,188 $ 108,465 $ 44,241 $ 2,364,048 $ 14,686 $ 3,112 $ 17,698,394
Additions - - 2,903 8,566 2,279 137 11,648 - 100,747 126,280
Disposals - - ( 403 ) ( 35,851 ) ( 125 ) ( 5,543 ) ( 7,518 ) - - ( 49,440 )
Account transfer - - 12,246 35,558 - 4,468 33,121 - ( 85,393 ) -
Net exchange difference - - 1,055 - 63 4 - - - 1,122
Dec 31, 2020 balance $ 1,746,786 $ 11,166 $ 3,129,503 $ 10,300,461 $ 110,682 $ 43,307 $ 2,401,299 $ 14,686 $ 18,466 $ 17,776,356
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Accumulated depreciation	an	d impairment Owned Land		Land Improvement		Building		Machinery Equipment		Transportation		Office Equipment	O	ther Equipment		Lease Assets		Unfinished Construction		Total
Jan 1, 2019 balance Disposals Account transfer Amortization Net exchange difference Dec 31, 2019 balance Jan 1, 2020 balance Disposals Account transfer Amortization Net exchange difference Dec 31, 2020 balance
		$ - - - - - $ - $ - - - - - $ -		( $ 377 ) - - ( 300 ) - ( $ 677 ) ( $ 677 ) - - ( 1,798 ) - $ 2,475 )		( $ 1,304,703 ) 4,671 551 ( 102,178 ) 1,147 ( $ 1,400,512 ) ( $ 1,400,512 ) 403 ( 467 ) ( 99,321 ) ( 559) $ 1,500,456 )		( $ 7,750,928 ) 41,478 - ( 423,473 ) - ( $ 8,132,923 ) ( $ 8,132,923 ) 35,515 467 ( 426,545 ) - $ 8,523,486 )		( $ 65,013 ) 1,393 - ( 11,169 ) 104 ( $ 74,685 ) ( $ 74,685 ) 77 - ( 10,887 ) ( 51) $ 85,546 )		( $ 41,007 ) 989 - ( 1,948 ) 3 ( $ 41,963 ) ( $ 41,963 ) 5,543 - ( 1,944 ) ( 1) $ 38,365 )		( $ 1,931,451 ) 15,137 ( 551 ) ( 74,773 ) - ( $ 1,991,638 ) ( $ 1,991,638 ) 7,518 - ( 76,943 ) - $ 2,061,063 )	( ( (	( $ 14,197 ) - - ( 255 ) - $ 14,452 ) $ 14,452 ) - - ( 234 ) - $ 14,686 )		$ - - - - - $ - $ - - - - - $ -		( $ 11,107,676 ) 63,668 - ( 614,096 ) 1,254 ( $ 11,656,850 ) ( $ 11,656,850 ) 49,056 - ( 617,672 ) ( 611) $ 12,226,077 )

(a) The property, plant and equipment of the consolidated company are depreciated on a straight-line basis based on the following durability years ：

Land improvement	5 years
House and building
Repair and maintenance works	2 to 10 years
New ancillary building	10 to 20 years
Electrical engineering	20 to 30 years
Main building engineering	30 to 45 years
Transportation
Lift repair and maintenance
works	2 to 5 years
Stacker and pallet truck	5 to 6 years
Machinery equipment
Electrical engineering	2 to 8 years
Machinery engineering	9 to 15 years
Misc. equipment
Repair and maintenance works	2 to 5 years
Other equipment	5 to 10 years

(b) The amount of property, plant and equipment that the consolidated company sets pledge as loan guarantee, the details are as follows (please refer to Note SIXTEEN, SEVENTEEN, and TWENTY-NINE) ：

SEVENTEEN, and TWENTY-NINE)	`：`
Land and building Machinery and other equipment	Dec 31, 2020 $ 3,059,802 919,107 $ 3,978,909	Dec 31, 2019
			$ 3,143,753 1,154,348 $ 4,298,101

Lease Agreement
(a) Right of use assets

Right of use assets
Right of use assets carrying amount Land	Dec 31, 2020 $ 934	Dec 31, 2019
			$ 1,191

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(b) (c) 15.	2020 Additions to right of use assets $ 227 Depreciation of right of use assets Land $ 192 Lease Liabilities Dec 31, 2020 Lease liabilities carrying amount Current $ 107 Non-current $ 541 Lease liabilities’ discount rate range as follows`：` Dec 31, 2020 Land 1.51461% Other information on lease 2020 Short-term lease expenses $ 34,350 Total of cash outflow from leasing $ 34,881 Other Intangible Assets	2019 $ 1,251 $ 60 Dec 31, 2019	2019 $ 1,251 $ 60 Dec 31, 2019
		$ 232 $ 962 Dec 31, 2019
			1.51461% 2019 $ 34,733 $ 34,791

Other Intangible Assets
Cost Jan 1, 2019 balance Purchased this period Reduction this period Net exchange difference Dec 31, 2019 balance Accumulated amortization and impairment Jan 1, 2019 balance Amortized this period Reduction this period Net exchange difference Dec 31, 2019 balance Dec 31, 2019 net	Software costs $ 21,178 5,628 ( 2,107) ( 15) $ 24,684 ($ 11,863) ( 6,697) 2,107 13 ($ 16,440) $ 8,244	Other intangible assets $ 11,118 293 ( 293) - $ 11,118 ($ 7,644) ( 2,314) 293 - ($ 9,665) $ 1,453	Total
			$ 32,296 5,921 ( 2,400) ( 15) $ 35,802 ($ 19,507) ( 9,011) 2,400 13 ($ 26,105) $ 9,697

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Cost Jan 1, 2020 balance Purchased this period Reduction this period Account transfer Net exchange difference Dec 31, 2020 balance Accumulated amortization and impairment Jan 1, 2020 balance Amortized this period Reduction this period Net exchange difference Dec 31, 2020 balance Dec 31, 2020 net	Software costs $ 24,684 3,193 ( 9,024) 1,637 7 $ 20,497 ($ 16,440) ( 5,274) 9,024 ( 7) ($ 12,697) $ 7,800	Other intangible assets $ 11,118 - ( 5,902) - - $ 5,216 ($ 9,665) ( 1,198) 5,902 - ($ 4,961) $ 255	Total
			$ 35,802 3,193 ( 14,926) 1,637 7 $ 25,713 ($ 26,105) ( 6,472) 14,926 ( 7) ($ 17,658) $ 8,055

Amortization costs are accrued on a straight-line basis based on the following durability

years ：

Software costs 3 years Other intangible assets 3 years

Borrowing (a) Short-term loan

rrowing Short-term loan
Unsecured loans Credit loan Secured loans Bank loan	Dec 31, 2020 $ 1,924,000 120,000 $ 2,044,000	Dec 31, 2019
			$ 3,550,000 500,000 $ 4,050,000

The interest rates of bank revolving loans were 0.5214% ～ 0.91% and 0.90% ～ 1.04556% as of December 31, 2020 and 2019, respectively.
The secured loan was secured by property, plant, equipment as of December 31, 2020 and 2019 (please refer to Note THIRTEEN and TWENTY- NINE).
(b) Shot-term Note Receivable— Commercial Promissory Receivable

Guarantee Agency Unsecured Ta Ching Bills, China Bills, Taiwan Bills, Mega Bills, International Bills, Grand Bill, and Bangkok Bank	Dec 31,	2020	2020
	Interests 0.31%~0.67%		Amount
			$ 1,120,000

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

Dec 31, 2019
Guarantee Agency Interests Amount
Unsecured
Ta Ching Bills, China Bills, Taiwan 0.58%~0.89% $ 620,000
Bills, Mega Bills, and Taiwan
Cooperative Bills
17. Long-Term Loan
Interests Dec 31, 2020 Dec 31, 2019
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Long-term bank loan`：`
Bank of Taiwan
Land mortgage loan on Chang Hwa nylon
plant 03.07. 2014`～`02.14.2022,
07.07.2014`～`02.14.2022, 03.02.2015`～`
02.14.2022, 06.18.2015`～`02.14.2022
and 09.30.2015`～`02.14.2022. Interests
to be paid monthly, the total loan amount
is NT$ 1 billion, loan repayment cycle is
6 months starting from 08.14.2016, the
principal NT$55,000 thousand is to be
repaid in the first 9 months, the
remaining principal is to be settled by	1.1364%~
maturity.`（`Note`）`	1.4429%	$	560,000	$	615,000
Bank of Taiwan
Land mortgage loan on Chang Hwa nylon plant
06.29.2016`～`02.14.2022 and 11.28.2016`～`
02.14.2022 and 02.13.2017`～`02.14.2022.
Interests to be paid monthly, the total loan
amount is NT$987 million, loan repayment
cycle is 6 months starting from 08.14.2017,
the principal NT$70,000 thousand is to be
repaid in each of the first 7 cycles, the
remaining principal is to be settled by	1.2104%~
maturity.`（`Note`）`	1.4958%	$	395,000	$	535,000
Chang Hwa Bank
Interests paid monthly to Bank for Taipei
branch’s building mortgage loan 12.29.2017
`～`12.29.2022 and 03.29.2018~12.29.2022,
total loan amount is NT$400 million,
principal is divided into 16 repayments and
shall be repaid every 3 months, cycle starts	1.4000%~
from 03.29.2019 till maturity.	1.7000%		200,000		300,000
Chang Hwa Bank
Interests paid monthly to Bank for Taipei
branch’s building mortgage loan 12.30.2020
`～`12.30.2023, total loan amount is NT$375
million with principal repayment by maturity.	1.18978%		375,000		-

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KGI Bank Interests Interests paid monthly to Bank for Taipei branch’s long-term credit loan 12.29.2020`～`10.29.2022, total loan amount is NT$500 million with principal repayment by maturity. 1.18656% Less`：`Partially transferred to current liabilities due within one year (	Dec 31, 2020 500,000 2,030,000 155,000) ( $ 1,875,000	Dec 31, 2019 - 1,450,000 350,000) $ 1,100,000

Note ： The maturity date of the original loan was February 14, 2021, which was extended to February 14, 2022 in July and September 2020, respectively.

The long-term loans on December 31, 2020 and 2019 were collateral for property, plant and equipment, please refer to Note THIRTEEN and TWENTY-NINE.

18. Retirement Benefit Plans

(a) Defined contribution plans

The pension system of the "Labor Pension Act" applicable to Li Peng Enterprise and its local subsidiaries is a government-managed retirement plan. The retirement pension is allocated to the labor insurance bureau based on 6% of the employee’s monthly salary.

Subsidiaries in mainland China, in accordance with China government laws and regulations, provide pension insurance funds based on a certain percentage of the total salary of employees with payments made to relevant government departments, as well as into the individual’s savings account of each employee.

(b) Defined benefit plans

Li Peng Enterprise has defined benefit plans under the R.O.C. Labor Standards Law that provide benefits based on an employee’s length of service and average monthly salary for the six-month period prior to retirement.

The consolidated company contributes an amount equal to 2% of salaries paid each month to their respective pension funds (the Funds), which are administered by the Labor Pension Fund Supervisory Committee (the Committee) and deposited in the Committee’s name in the Bank of Taiwan. Before the end of each year,

the consolidated company assesses the balance in the Funds. If the amount of the balance in the Funds is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the consolidated company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The Funds are operated and managed by the government’s designated authorities; as such, the consolidated company does not have any right to intervene in the investments of the Funds. Amounts recognized in respect of these defined benefit plans were as follows ：

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liability	Dec 31, 2020 $ 352,539 ( 116,734) $ 235,805	Dec 31, 2019	Dec 31, 2019
	(	(	$ 366,112 103,413) $ 262,699

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Changes to net defined benefit liability (asset) are as follows ：

Jan 1, 2019 balance Service cost Current service cost Net interest expense (income) Remeasurement on the net defined benefit Remeasurement Return on plan assets (excluding amounts included in net interest expense) Actuarial loss`（`gain`）` `－`changes in demographic assumptions Actuarial loss`（`gain`）` `－`changes in financial assumptions Actuarial loss`（`gain`）` `－`from experience adjustment Recognized in other comprehensive income Paid by employer Benefit costs Dec 31, 2019 Jan 1, 2020 balance Service cost Current service cost Interest expense`（`income`）` Recognized in profit and loss Remeasurement Return on plan assets (excluding amounts including in net interest expense)	Present value of defined benefit obligation $ 350,795 3,668 3,946 7,614 - 177 16,471 7,143 23,791 Present value of defined benefit obligation $ - ( 16,088) $ 366,112 $ 366,112 3,095 2,746 5,841 -	Fair value of plan assets ($ 81,867) - ( 1,051) ( 1,051) ( 2,767 ) - - - ( 2,767) Fair value of plan assets ($ 32,221) 14,493 ($ 103,413) ($ 103,413) - ( 863) ( 863) ( 3,102 )	Net defined benefit liability (asset) $ 268,928 3,668 2,895 6,563 ( 2,767 ) 177 16,471 7,143 21,024 Net defined benefit liability (asset)
	(		($ 32,221) ( 1,595) $ 262,699 $ 262,699 3,095 1,883 4,978 ( 3,102 )

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(Continued from last page) Present value of defined benefit obligation Fair value of plan assets Actuarial loss`（`gain`）` `－`changes in financial assumptions 10,183 - Actuarial loss`（`gain`）` `－`from experience adjustment ( 16,044) - Recognized in other comprehensive income ( 5,861) ( 3,102) Paid by employer - ( 22,909) Benefit cost ( 13,553) 13,553 Dec 31, 2020 $ 352,539 ($ 116,734) Movements in the fair value of the plan assets were as follows`：` 2020 Categorized by functions Operating cost $ 4,055 Management expense 638 R&D expense 285 $ 4,978	(Continued from last page) Present value of defined benefit obligation Fair value of plan assets Actuarial loss`（`gain`）` `－`changes in financial assumptions 10,183 - Actuarial loss`（`gain`）` `－`from experience adjustment ( 16,044) - Recognized in other comprehensive income ( 5,861) ( 3,102) Paid by employer - ( 22,909) Benefit cost ( 13,553) 13,553 Dec 31, 2020 $ 352,539 ($ 116,734) Movements in the fair value of the plan assets were as follows`：` 2020 Categorized by functions Operating cost $ 4,055 Management expense 638 R&D expense 285 $ 4,978	Net defined benefit liability (asset)	Net defined benefit liability (asset)
			10,183 ( 16,044) ( 8,963) ( 22,909) - $ 235,805 2019
			$ 5,316 887 360 $ 6,563

Through the defined benefits plans under the R.O.C. Labor Standards Law, the consolidated company is exposed to the following risks ：

Investment risk: The pension funds are invested in equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the government’s designated authorities or under the mandated management. However, under the R.O.C. Labor Standards Law, the rate of return on assets shall not be less than the average interest rate on a two-year time deposit published by the local banks and the government is responsible for any shortfall in the event that the rate of return is less than the required rate of return.
Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, the debt investment returns of the planned assets will also increase accordingly. This will be partially offset by an increase in the return on the debt investments of the plan assets.
Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the present value of the defined benefit obligation.
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The plan assets of the consolidated company and the present value of the defined benefit obligation are actuarial calculations performed by qualified actuaries. The key assumptions on the measurement date are as follows ：

Discount rate Future salary increase rate	Dec 31, 2020 0.50% 2.25%	Dec 31, 2019
		0.75% 2.25%

If the major actuarial assumptions are subject to reasonably possible changes, and all other assumptions remain unchanged, the amount that will increase (decrease) the present value of the defined benefit obligation is as follows ：

Discount rate Increase 0.25% Decrease 0.25% Expected salary increase rate Increase 0.25% Decrease 0.25%	Dec 31, 2020 ($ 10,183) $ 10,607 $ 10,250 ($ 9,895)	Dec 31, 2019	Dec 31, 2019
	( (	( (	$ 11,096) $ 11,579 $ 11,216 $ 10,808)

Since actuarial assumptions may be related, it is unlikely that only a single assumption will change, so the above sensitivity analysis may not reflect the actual changes in the present value of the defined benefit obligation.

Equity (a)	Expected withdrawn within 1 year Defined benefit obligation average maturity Shares Common share Authorized shares`（`in thousands`）` Authorized capital Issued and paid shares`（`in thousands`）` Issued capital		Dec 31, 2020 $ 16,920 11.6 years Dec 31, 2020 1,200,000 $ 12,000,000 914,487 $ 9,144,872		Dec 31, 2019 $ 23,317 12.2 years Dec 31, 2019 1,200,000 $ 12,000,000 914,487 $ 9,144,872

Equity

A holder of issued common shares with par value of NT$10 per share is entitled to vote and receive dividends.

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(b) Capital reserve Using equity method to recognize the capital reserve of associates Recognition of changes in ownership and equity of subsidiaries`（`Note 25`）` Treasury stock trading	Dec 31, 2020 $ 60,067 435 74,118 $ 134,620	Dec 31, 2019	Dec 31, 2019
			$ 59,926 - 74,118 $ 134,044

The excess from the issuance of stocks in excess of the par value in the capital reserve (including the issuance of ordinary shares in excess of the par value, the share premium of the issuance of shares due to mergers, treasury stock transactions, and the difference in the book value of the acquisition or disposal of the equity price of a subsidiary company, etc.) and receiving gifts with proportional income can be used to make up for losses, and can also be used to pay cash dividends or to capitalize when the consolidated company isn’t operating at a loss. However, the capital to be capitalized is limited to a fixed percentage of the paid-in capital each year.

The capital reserve generated by the investment using the equity method and all changes in the equity of the subsidiaries can only be used to make up for losses.

(c) Retained earnings and dividend policy
According to the surplus distribution policy of the consolidated company, if there is a surplus in the financial account at year end, the earnings shall first make up for the accumulated losses, and then to allocate 10% of the earnings according to the law as the statutory surplus reserve, but the statutory surplus reserve has reached the actual income of the total amount of capital, which may be exempted from continuing to be listed; the special surplus reserve may be transferred or converted into a special surplus reserve according to laws or regulations or by the authority. If there is a balance remained, add the accumulated undistributed surplus at the beginning of the period as the distributable surplus by allocating 0% to 100% of the distributable surplus. The board of directors will draft a surplus distribution proposal and submit it to the shareholders meeting for approval. In addition, the cash dividend must not be less than 5% of the total dividend, but if the cash dividend per share is less than NT$0.1, it may be changed to offer stock dividends. Due to the volatile industrial business environment and the development of diversification, the board of directors may decide to change to offer stock dividends based on the capital budget and funds available. Please refer to Note TWENTY-ONE (SEVEN) Employee Compensation and Board of Directors' Compensation for the compensation policy stipulated in the policy articles of the consolidated company.
The appropriations of the 2019’s loss compensation and 2018’s annual earnings cases have been approved by the consolidated company’s Board of Directors in its meetings held on June 18, 2020 and June 12, 2019, respectively.
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Retained earnings distribution plan Dividend per share （ NTD ）
2019 2018 2019 2018
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Legal capital
reserve	$	-	$ 16,195	$	-	$	-
Special capital
reserve		-	326,429		-		-
Cash dividends		-	182,898		-		0.2

The information about the consolidated company’s distribution of surplus to shareholders is available at the Market Observation Post System website.

The consolidated company has filed and reverted in accordance with the requirements of FSC with certified documents No. 1010012865, No. 1010047490 and "Questions and Answers Concerning the Application of Special Surplus Reserves after the adoption of International Financial Reporting Standards (IFRSs)". If there is a subsequent reversal of the deduction balance of other shareholders' equity, the reversal part of the surplus may be distributed.

The legal capital reserve shall be allocated until the balance reaches the total paid-up share capital of the consolidated company. The legal capital reserve can be used to make up for losses. When the consolidated company is not operating under losses, the part of the legal capital reserve exceeding 25% of the total paid-up share capital can be allocated in cash in addition to the capital.

(d) Non-controlling interests

Non-controlling interests
Balance, beginning of the year Impact of retrospective application of IFRS 16 Share attributable to uncontrollable equity Net profit (loss) in this period Unrealized gains and losses of financial assets measured at fair value through other comprehensive income	2020 $ 730,902 - ( 2,324 ) 207,181	2019
		$ 741,751 ( 5 ) 5,315 ( 16,159)

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2020 2019 The non-controlling interests changes of the subsidiary's cash capital increase not recognized according to the - shareholding ratio ($ 435) $ Non-controlling interests increased by increased cash - capital of subsidiaries 9,000 Obtain increased non-controlling interests from subsidiaries 3,000 - Balance, end of year $ 947,324 $ 730,902

(e) Treasury stock

The changes in shares held by the consolidated company and its subsidiaries in 2019 and 2020 are as follows ：

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2020
Reason for Shares, beginning Shares, end of
withdrawal of year Increase Decrease year
Parent company’s
shares held by
- -
subsidiary 82,948,106 82,948,106
Shares transferred
- -
to employees 8,000,000 8,000,000
- -
90,948,106 90,948,106
2019
Shares,
Reason for beginning of Shares, end of
withdrawal year Increase Decrease year
Parent company’s
shares held by
- -
subsidiary 82,948,106 82,948,106
Shares transferred
- -
to employees 8,000,000 8,000,000
- -
90,948,106 90,948,106
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The purpose of holding Li Peng Enterprise’s shares by subsidiaries is to protect shareholders’ rights and interests, relevant information is as follows ：

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Amount transferred
Subsidiary Shares held to treasury stock
Dec 31, 2020
Li Mao Investment Co. 34,177,995 $ 148,007
HungHsing Investment Co. 24,618,087 105,886
Li Shing Investment Co. 24,152,024 103,845
$ 357,738
Dec 31, 2019
Li Mao Investment Co. 34,177,995 $ 148,007
HungHsing Investment Co. 24,618,087 105,886
Li Shing Investment Co. 24,152,024 103,845
$ 357,738
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On December 31, 2020, the consolidated company listed the amount of treasury stocks of NT$432,403 thousand, including the amount of NT$74,665 thousand that the consolidated company bought back treasury shares of and the amount of NT$357,738 thousand transferred to the treasury stocks of the consolidated company held by its subsidiaries. The listed amounts have been adjusted according to the consolidated company’s shareholding ratio in subsidiaries. The market price of the consolidated company’s shares as of December 31, 2020 was NT$9.02 per share.
The consolidated company holds treasury stocks, thus, it shall not be pledged in accordance with the Securities and Exchange Law, nor shall it enjoy the rights of dividend distribution and voting rights. In addition, subsidiaries holding the consolidated company’s shares shall be treated as treasury stocks, except for not participating in cash reserve increment. Except for not having voting rights, the other rights remain the same as general shareholders.
Income

20.	Income
21. (a)	Commodity sales revenue Processing revenue Other Continuing operation unit net profit Interest income Interest income Bank deposits Interests from related parties	2020 $ 13,097,359 458,368 3,734 $ 13,559,461 2020 $ 39,443 5,864 $ 45,307	2019
			$ 13,991,016 585,184 3,147 $ 14,579,347 2019

				$ 63,731 1,517 $ 65,248

(b) Other income

Other income
Lease income Lease income of operations Dividend income Other`（`Note 31`）`		2020 $ 15,943 1,738 107,180 $ 124,861		2019
				$ 18,145 78,083 28,949 $ 125,177

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Other gains and losses
Gain (loss) on disposal of property, plant and equipment Net exchange difference Disposal of investment interests using the equity method Gain (loss) on financial assets and net liability at FVTPL Gain on disposal of investments Other losses	2020 $ 668 ( 334,892 ) 51 29,449 341 ( 2,583) ( $ 306,966 )	2019
		( $ 1,307 ) ( 93,792 ) - ( 9,694 ) 791 ( 1,915) ( $ 105,917 )

(d) Financial cost 2020 Interests of lease liability $ 10 Interest of bank loan 52,788 Interest of loan from related parties 663 Financial expenses 3,036 $ 56,497 Information about interest capitalization is as follows`：` 2020 Interest capitalization amount $ 1,415 Interest capitalization rate 1.19898%-1.51968% (e) Depreciation and amortization 2020 Property, plant and equipment $ 617,672 Right of use assets 192 Intangible assets 6,472 Down payment 71,701 Total $ 696,037 Categorized depreciation expenses by function Operating cost $ 603,430 Operating expenses 14,434 $ 617,864		2019
		$ 5 61,548 995 1,189 $ 63,737 2019
	$ 907 1.51401%-1.51874% 2019
		$ 614,096 60 9,011 94,388 $ 717,555 $ 599,399 14,757 $ 614,156

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d from last page`）`
Categorized amortization expenses by function Operating cost Operating expenses		2020 $ 75,687 2,486 $ 78,173		2019
				$ 102,160 1,239 $ 103,399

(f) Expenses for employee benefits

Short-term employee benefits Retirement benefits Definedcontribution plan Defined benefit plan `（`Note 18`）` Compensation to directors Other employee benefit Total expenses of employee benefit				2020		Total $ 736,095 22,760 4,978 27,738 3,484 66,898 $ 834,215				2019
		Operating cost $ 595,846 17,675 4,055 21,730 - 57,744 $ 675,320		Operating expenses $ 140,249 5,085 923 6,008 3,484 9,154 $ 158,895				Operating cost $ 656,660 18,612 5,316 23,928 - 64,498 $ 745,086		Operating expenses $ 137,141 5,124 1,247 6,371 3,060 9,880 $ 156,452		Total
												$ 793,801 23,736 6,563 30,299 3,060 74,378 $ 901,538

(g) Employees’ and Boards’ remunerations According to the provisions of the consolidated company’s policy articles, the consolidated company uses the pre-tax benefits of the current year to deduct the remuneration of employees and directors at a rate of no less than 2% and no more than 5% for employees’ compensation and directors' compensation.

In 2020 and 2019, pre-tax losses occurred, so employees’ compensation and directors’ compensation are not estimated.

For information on employees’ compensation and directors’ compensation of the consolidated company’s 2020 and 2019 board resolutions, please refer to the "Public Information Observatory" of the Taiwan Stock Exchange website.

22. Continuing operating business unit’s income tax

(a) The main components of income tax benefits recognized in profit and loss ：

Current income tax expense Recognized in the current year Income tax on unappropriated earnings Adjustments on prior years Deferred income tax Recognized in the current year Adjustment on prior year Income tax benefits recognized in profit and loss		2020		2019
	$ 2,344 1,069 822 4,235 ( 122,442) ( 319) ( 122,761) ($ 118,526)		$ 643 1,875 1,507 4,025 ( 72,721) - ( 72,721) ($ 68,696)

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	The adjustment of accounting income and current income tax	The adjustment of accounting income and current income tax	The adjustment of accounting income and current income tax	benefits is as follows`：`	benefits is as follows`：`	benefits is as follows`：`
			2020			2019
	Income tax benefits at the statutory tax rate
	for net loss before tax	($ 101,630)		($		58,206)
	Tax effect of adjusting items
	Investment (profit) loss recognized by
	the equity method	(	5,534)			3,813
	Financial asset evaluation benefits	(	594)	(		1,265)
	Gain on disposal of investment	(	2,383)	(		157)
	Tax-exempt dividend income	(	348)	(		18,964)
	Realized investment losses		8,685			13,815
	Tax-exempt stock exchange income
	and fees with interest adjustment		73			78
	Realized investment losses		-	(		8,558)
	Tax-exempt subsidy income	(	16,434)			-
	Unrecognized loss in prior year to be
	deducted in the current year	(	852)			-
	Other	(	1,081)	(		2,634)
	Adjustment on income tax expenses in
	prior year		503			1,507
	Income tax on unappropriated earnings		1,069			1,875
	Income tax benefits recognized in profit and
	loss	($ 118,526)		($		68,696)
(b)	Current income tax liabilities
		Dec 31, 2020		Dec 31, 2019
	Current income tax liabilities
	Income tax payable	$	3,379		$	2,518
	Less`：`tax paid in current year	(	576)	(		688)
		$	2,803		$	1,830
(c)	Deferred income tax assets and liabilities
		Dec 31, 2020		Dec 31, 2019
	Deferred income tax assets
	Temporary difference
	Allowance for loss of inventory
	depreciation		$ 28,536		$	42,753
	Unallocated inventory cost for
	manufacturing		10,289			8,583
	Unrealized exchange loss		16,482			18,172
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`（` continued from last page `）`

d from last page`）`
Unrealized loss of financial liabilities measured at FVTPL Pension tax difference Defined actuarial profit and loss of retirement plan Sales discount preparation Loss deduction Bonus for no-leave Unrealized gross loss Other Deferred income tax liability Unrealized gross loss Land appreciation tax preparation	Dec 31, 2020 $ - 8,626 17,892 4,074 275,736 3,689 93 541 $ 365,958 $ - 146,650 $ 146,650	Dec 31, 2019
			$ 5,419 11,893 17,892 4,331 130,776 3,686 - 541 $ 244,046 $ 849 146,650 $ 147,499

(d) The deducted amount of unlisted losses of deferred income tax assets not recognized in the consolidated balance sheet.

in the consolidated balance sheet.
Loss deduction Due in 2029 Due in 2030	Dec 31, 2020 $ - 3,105 $ 3,105	Dec 31, 2019
			$ 852 - $ 852

(e) Unlisted loss deduction information

As of Dec 31, 2020, the loss deduction information is as follows ：

	Balance yet deducted $ 655,469 727,905 $ 1,383,374	Year due
		2029 2030

(f) Li Peng Enterprise, Li Mao Investment Co, Li Shing Co. and Hung Hsing Co.’s income tax declarations for commercial businesses, as well as the income tax declaration for businesses, from the past until (including) year 2018, have been approved by the inspection authority.
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23. Loss per share

The consolidated company’s loss per share in 2020 and 2019 is as calculated as follows:

follows:
2020 Basic loss per share The net loss attributable to ordinary shareholders for the period 2019 Basic loss per share The net loss attributable to ordinary shareholders for the period	Amount`（`numerator`）`						Share `（`denominator `）` `（`thousand share`）`		Los		sper share`（`NTD`）`
	Before tax `（`Non-deduct ed uncontrollable interests`）`		After tax `（`Non-deduct ed uncontrollable interests`）`		Net profit `（`loss`）` `（`Belong to parent company’s shareholder`）`				Before tax `（`non-deducte d uncontrollable interests`）`		After tax `（`non-deducte d uncontrollable interests`）`		Net profit `（`loss`）` `（`belong to parent company’s shareholder`）`
		( $ 532,859 ) ( $ 312,747 )		( $ 414,333 ) ( $ 244,051 )		( $ 412,009 ) ( $ 249,366 )		862,390 862,390		( $ 0.62 ) ( $ 0.36 )		( $ 0.48 ) ( $ 0.28 )		( $ 0.48 ) ( $ 0.29 )

If the consolidated company chooses to pay employee compensation in stocks or cash, when calculating the diluted earnings per share, it is assumed that employee compensation will be paid in the form of stocks, and the weighted average number of shares outstanding as the diluted potential common stock is calculated as diluted earnings per share. When calculating the diluted earnings per share before deciding on the number of shares to be paid to employee compensation in the following year, the dilution of these potential ordinary shares will also be accounted.

24. Business consolidation

(a) Acquisition of subsidiary

Libolon Energy Co. Ltd.	Main operating activity Renewable energy powered equipment and cogeneratio n industry	Acquisition date Jul 1, 2020	With voting rights ownership interest`／` Acquisition ratio`（％）` 55%	Transfer consideration $ 550

(b) Assets acquired and liabilities assumed on the acquisition date

Assets acquired and liabilities assumed on the acquisition date
Current assets Cash and cash equivalent Other current assets Current liabilities Other accounts payable	Libolon Energy Co. Ltd.
	(	$ 942 1 435 60) $ 883

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(c) Obtaining the net cash inflow from the subsidiary

Obtaining the net cash inflow from the subsidiary
Cash payment consideration Less`：`acquired cash and cash equivalent balance	Jan 1 to Jun 30, 2020
	( (	$ 550 942) $ 392 )

(d) The impact of business consolidation on business results

Since the acquisition date, the operating results from the acquired company are as follows ：

follows`：`
Operating income Libolon Energy Loss after tax Libolon Energy	Jul 1 to Dec 31, 2020
	(	$ - $ 2,988 )

25. Equity transactions with non-controlling interests

In September 2020, the consolidated company did not subscribe for the cash capital increase of Libolon Energy Co. Ltd. in proportion to its shareholding ratio, resulting in the shareholding ratio falling from 100% to 70%.

Since the above transaction did not change the controlling of the subsidiary by the consolidated company, which was treated as an equity transaction, and the balance of equity transaction was NT$435 thousand which was accounted for under the capital reserve.

26. Capital risk management

The consolidated company conducts capital management to ensure that it can be withdrawn before continuing to operate, and maximizes shareholder compensation by optimizing the balance of debt and equity. The overall strategy of the consolidated company has not changed.

The consolidated company has no other restrictions on external capital regulations.

27. Financial instruments

－
(a) Fair value information Financial instruments not measured at fair value

The management of the consolidated company believes that the book value of financial assets and financial liabilities that are not measured at fair value reaches their fair value or their fair value cannot be reliably measured.

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(b) Fair value information － Financial instruments measured at fair value on a repeatability basis

repeatability basis
Dec 31, 2020 Financial assets measured at fair value through profit and loss Listed`（`OTC`）`stocks Fund beneficiary certificate Not listed`（`OTC`）`common stocks Not listed abroad`（`OTC`）` common stocks Structured deposits Financial products Total Financial assets measured at fair value through other comprehensive income Domestic listed stocks Dec 31, 2019 Financial assets measured at fair value through profit and loss Listed`（`OTC`）`stocks Not listed`（`OTC`）`common stocks Not listed abroad`（`OTC`）` common stocks Structured deposits Financial products Total Financial assets measured at fair value through other comprehensive income Domestic listed stocks Financial liabilities measured at fair value through profit and loss Exchange contract	Grade 1 $ 101,160 119,125 - - - - $ 220,285 $ 2,358,662 Level 1 $ 58,104 - - - - $ 58,104 $ 1,824,018 $ -	Grade 2 $ - - - - 98,098 173,591 $ 271,689 $ - Level 2 $ - - - 4,126 238,867 $ 242,993 $ - $ 27,094	Grade 3 $ - - 11,395 430 - - $ 11,825 $ - Level 3 $ - 13,017 430 - - $ 13,447 $ - $ -	Total
				$ 101,160 119,125 11,395 430 98,098 173,591 $ 503,799 $ 2,358,662 Total
				$ 58,104 13,017 430 4,126 238,867 $ 314,544 $ 1,824,018 $ 27,094

No transfer of the fair value measurement between level 1 and level 2 in year 2019 and 2020.

(c) Valuation techniques and assumptions used in level 2 fair value measurement ： Type of financial instruments Evaluation technology and input value － Derived instrument Discounted cash flow method: Estimate the future exchange contract cash flow based on the exchange rate calculated

Evaluation technology and input value Discounted cash flow method: Estimate the future cash flow based on the exchange rate calculated in the observable exchange contract at the end of the period, and discount it separately at a rate that can reflect the credit risk of each counterparty.

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(d) Valuation techniques and assumptions used in level 3 fair value measurement ： Non-publicly traded (OTC) equity investment adopts the asset method to reflect the overall value of the investment target based on the total value of individual assets and liabilities.
(e) Types of financial instruments

Types of financial instruments
Financial assets Measured at FVTPL Mandatorily measured at FVTPL Financial assets measured by amortized cost (note 1) Financial assets measured through other comprehensive income Equity instrument investment Financial liabilities Held for trading measured at FVTPL Financial liabilities measured by amortized cost (note 2)	Dec 31, 2020 $ 503,799 4,127,426 2,358,662 - 6,717,233	Dec 31, 2019
		$ 314,544 4,997,814 1,824,018 27,094 7,143,670

Note 1 ： The balance includes cash and cash equivalents, notes and accounts receivable and other financial assets measured at amortized cost.
Note 2 ： The balance includes short-term loans, short-term bills payable, bills payable, accounts payable, other payables, advance loans to related parties, and financial liabilities derived from long-term loans measured at amortized cost.
(f) Derivative financial products
The realized net profit from the operation of derivative financial products in 2020 was NT$ 32,117 thousand, which was accounted for under other interests and losses.
In 2019, the operation of derivative financial products incurred an unrealized net loss of NT$27,094 thousand and a realized net profit of NT$91,295 thousand, which are accounted for under other profits and losses.
(g) Financial risk management objectives and policies The main financial instruments of the consolidated company include equity and debt investments, borrowings, lease liabilities, accounts receivable and accounts payable, etc. The financial management department of the consolidated company provides services for various business units, coordinates access to domestic and international financial markets, and supervises and manages the financial risks related to the
58 -

operations of the consolidated company by analyzing internal risk reports based on the degree and breadth of risk. These risks include market risk (exchange rate risk), credit risk and liquidity risk.

The consolidated company uses derivative financial instruments to avoid the impact of exchange rate risk. The use of derivative financial instruments is regulated by the policies adopted by the board of directors of the consolidated company, which are written principles for exchange rate risk, credit risk, the use of derivative financial instruments and non-derivative financial instruments, and the investment of remaining liquid funds. Internal auditors continue to review compliance with policies and the risk limit. The consolidated company did not trade financial instruments (including derivative financial instruments) for speculative purposes.

Market risk

The main financial risk of the consolidated company's operating activities that the company bears is the risk of foreign currency exchange rates.

Exchange rate risk: occur in future commercial transactions, recognized assets and liabilities, and foreign exchange trading transactions to avoid exchange rate changes.

The consolidated company's risk exposure related to financial instrument market risks and its management and measurement methods have not changed.

Sensitivity analysis

The consolidated is mainly influenced by the USD exchange rate fluctuation. The following table details the sensitivity analysis of the consolidated company when the exchange rate of the New Taiwan Dollar (functional currency) to the U.S. dollar increases and decreases by 0.5%. 0.5% is the assessment of the reasonably possible range of changes in the foreign currency exchange rate of the consolidated company. Sensitivity analysis includes only monetary items in foreign currencies in circulation, and their conversion at the end of the period is adjusted with a 0.5% change in exchange rate. The positive numbers in the following table represent the amount of increase in net profit before tax when the New Taiwan Dollar depreciates 0.5% relative to the relevant currencies; when the New Taiwan Dollar appreciates 0.5% relative to the relevant currencies, its impact on the net profit before tax will be the same negative number of the amount.

number of the amount.
0.5% difference in the exchange rate of USD profit and loss	Dec 31, 2020 $ 8,237	Dec 31, 2019
		$ 19,332

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Credit risk Credit risk refers to the risk of the consolidated company’s financial losses caused by the counterparty's default of contract obligations. In order to reduce credit risk, the consolidated company has the right to request for collateral or other guarantees from major transaction partners. Accordingly, the management of the consolidated company believes that the credit risk has been significantly reduced.
Liquidity risk The consolidated company manages and maintains sufficient cash and cash equivalents to support the consolidated company’s operations and reduce the impact of cash flow fluctuations. The management of the consolidated company supervises the use of bank financing lines and ensures compliance with the terms of the loan contract.
Bank loans are an important source of liquidity for the consolidated company. As of December 31, 2020 and 2019, the unutilized short-term bank financing lines of the consolidated company were NT$12,640,721 thousand and NT$13,698,227 thousand, respectively.
(1) Liquidity and interest rate risk table of non-derivative financial liabilities The remaining contract maturity analysis of non-derivative financial liabilities is based on the earliest possible repayment date of the consolidated company and is compiled based on the undiscounted cash flows of financial liabilities (including principal and estimated interest). Therefore, the bank loans that the consolidated company can be required to repay immediately are within the earliest period in the table below, regardless of the probability of the bank immediately executing the right; the maturity analysis of other non-derivative financial liabilities is compiled in accordance with the agreed repayment date. Analysis as below:

Dec 31, 2020

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Non-derived financial liabilities In 1 year 1 to 2 years Over 2 years
Short-term loan $ 2,044,000 $ - $ -
- -
Short-term bills payable 1,120,000
Notes payable （ including
- -
related parties ） 63,470
Accounts payable （ including
- -
related parties ） 1,058,224
- -
Other payable 316,539
Loan payable to related
- -
parties 85,000
Lease liabilities （ current and
non-current ） 115 183 366
- -
Liability preparation 20,372
Long-term loan （ including 1
year or due within the
operating cycle ） 155,000 1,500,000 375,000
- -
Deposited security 1,176
$ 4,863,896 $ 1,500,183 $ 375,366
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Dec 31, 2019

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Non-derived financial
liabilities In 1 year 1 to 2 years Over 2 years
Short-term loan $ 4,050,000 $ - $ -
- -
Short-term bills payable 620,000
Notes payable
（ including related
- -
parties ） 77,164
Accounts payable
（ including related
- -
parties ） 491,182
- -
Other payable 335,324
Loan payable to related
- -
parties 120,000
Lease liabilities （ current
and non-current ） 246 246 738
- -
Liability preparation 21,653
Long-term loan
（ including 1 year or
due within the
operating cycle ） 350,000 1,000,000 100,000
- -
Deposited security 1,475
$ 6,067,044 $ 1,000,246 $ 100,738
----- End of picture text -----

(2) Liquidity of derived financial liabilities
For the liquidity analysis of derivative financial instruments, for derivative instruments that are settled on a net basis, it is compiled on the basis of undiscounted contract net cash inflows and outflows; for derivative instruments that are settled on a gross basis, it is compiled on the basis of undiscounted net cash inflows and outflows. It is prepared based on the current total cash inflows and outflows.

Dec 31, 2019

derivative financial

Dec 31, 2019 derivative financial
liabilities Net delivery Exchange contract		In 1 year $ 27,094		1 to 2 years $ -		2 to 5 years $ -		Over 5 years
								$ -

28. Trading with Related Parties

Trading between Li Peng Enterprise and its subsidiaries (related parties), and account balance, income and expenses are all eliminated at the time of consolidation, so they are not disclosed in this note. The transactions between the consolidated company and other related parties are as follows.

(a) Related parties and association Related parties Association with the Company LEALEA ENTERPRISE CO. LTD. Investors with significant influence FU LI TRANSPORTAION CO. Associated company LEA JIE ENERGY CO. LTD. Associated company LIBOLON ENTERPRISE CO. LTD. Associated company

（ continued in next page ）
61 -

`（` continued from last page `）`

Related parties Association with the Company RICH DEVELOPMENT CO. LTD. Associated company LI LING FILM CO. LTD. Associated company LEALEA TECHNOLOGY CO. LTD. Associated company LI ZAN INVESTMENT CO. LTD. Associated company LI HAO INVESTMENT CO. LTD. Associated company LIBOLON ENERGY CO. LTD. Associated company originally, subsidiary since July 2020 PT. INDONESIA LIBOLON FIBER Other related parties originally, SYSTEM associated company since May 2020 LIBOLON INTERNATIONAL CORP. Other APEX FONG YI TECHNOLOGY CO. Other LTD.

(b) Operating income

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

Accounting item Type of associate ／ name 2020 2019
Sales revenue Investors with significant
influence $ 574,043 $ 528,482
Associated company 340,174 152,181
Other 23,496 39,809
$ 937,713 $ 720,472
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There is no significant difference between the consolidated company’s sales to associated companies and general transactions with other related parties.

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

Type of associate 2020 2019
Investors with significant
influence $ 554,397 $ 743,148
Associated company 15,223 -
Other 29,417 120,831
$ 599,037 $ 863,979
----- End of picture text -----

(d) Amounts receivable from related parties (excluding loans to related parties)

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

Accounting item Type of associate ／ name Dec 31, 2020 Dec 31, 2019
Note receivable Investors with significant $ - $ -
----- End of picture text -----

influence Associated company LI LING FILM CO. LTD.	52,264 52,264	13,641 13,641

（ continued in next page ）
62 -

`（` continued from last page `）`

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

Accounting item Type of associate ／ name Dec 31, 2020 Dec 31, 2019
Accounts Investors with significant $ 89,732 $ 25,811
receivable influence
Associated company 70,418 13,825
Other 1,609 12,318
161,759 51,954
Other receivable Investors with significant
influence
LEALEA ENTERPRISE 7,232 5,228
CO. LTD.
Associated company 1,886 1,466
9,118 6,694
$ 223,141 $ 72,289
----- End of picture text -----

No guarantee is received for the accounts receivable from related parties. No allowance for losses is provided for accounts receivable from related parties in 2019 and 2020. The collection and payment deadlines for the consolidated company and related parties are not materially differentiated from those for general customers and manufacturers.

(e) Accounts payable to related parties (excluding borrowings from related parties)

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

Accounting item Type of associate ／ name Dec 31, 2020 Dec 31, 2019
Notes payable Investors with significant
influence
LEALEA ENTERPRISE $ 6,579 $ 15,630
CO. LTD.
Associated company 2,126 2,355
8,705 17,985
Accounts Investors with significant
payable i n f l u e n c e
LEALEA ENTERPRISE 94,729 54,513
CO. LTD.
Associated company 2,406 3,089
Other - 7,174
97,135 64,776
Payable for Investors with significant 315 -
purchase of influence
equipment
Associated company - 798
315 798
$ 106,155 $ 83,559
----- End of picture text -----

The balance of the outstanding accounts payable to related parties is not guaranteed.

(f) Disposal of property, plant and equipment

Type of associate`／`name Associated company		Disposalprice 2020 2019 $ 3 $ -	Disposalprice 2020 2019 $ 3 $ -		Disposalprofit`（`loss`）`	Disposalprofit`（`loss`）`	Disposalprofit`（`loss`）`
		2020 $ 3			2020 $ 3		2019 $ -

63 -

(g) Acquisition of property, plant and equipment

	Acquisition price	Acquisition price	Acquisition price
	2020	Trade to Libolon Energy Co. Ltd.		2019
$ 439 4,629 - $ 5,068 Shares traded 55,000 shares	$ 439 4,629 -		$	- 2,882 61,326 64,208 Acquisition price $ 550
	$ 5,068		$

(i) Acquisition of other assets

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

Acquisition price
Type of associate Accounting item 2020 2019
－
Associated Other intangible assets $ 2,866 $ 5,343
company computer software
Loan to related parties
Dec 31, 2020
Highest Balance, end Interest Interest
balance of year Interest range （％） income receivable
Investors with
significant
influence
Lealea Enterprise
Co. LTD. $ 238,000 $ 218,000 0.82040~0.91554 $ 1,295 $ 161
Associated company
PT. INDONESIA
LIBOLON
FIBER
SYSTEM 728,818 284,800 1.43044~3.19860 4,538 356
LI LING FILM
CO. LTD. 50,000 50,000 1.42565~1.47000 31 25
$ 552,800 $ 5,864 $ 542
Dec 31, 2019
Highest Balance, end of Interest
balance year Interest range （％） Interest income receivable
Investors with
significant
influence
Lealea
Enterprise Co.
LTD. $ 204,000 $ 164,000 0.89919~0.98599 $ 1,517 $ 133
----- End of picture text -----

(j) Loan to related parties

The consolidated company provides short-term loans to investors with significant influence, and the interest rate range is similar to the market interest rate.

64 -

(k) Loan from related parties

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

Dec 31, 2020
Highest Balance, end of Interest
balance year Interest range （％） Interest income receivable
Associated
company
Li Hao
Investment Co.
Ltd. $ 75,000 $ 55,000 0.76715~0.90479 $ 424 $ 36
Li Zan
Investment Co.
Ltd. 45,000 30,000 0.76715~0.90479 238 20
Lealea
Technology Co.
Ltd. 700 - 1.57810~1.59478 1 -
$ 85,000 $ 663 $ 56
Dec 31, 2019
Highest Balance, end of Interest
balance year Interest range （％） Interest income receivable
Associated
company
Li Hao
Investment Co.
Ltd. $ 75,000 $ 75,000 0.89598~0.97842 $ 628 $ 59
Li Zan
Investment Co.
Ltd. 45,000 45,000 0.89598~0.97842 367 36
$ 120,000 $ 995 $ 95
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The borrowing interest rate of the consolidated company's loan from related parties is equivalent to the market interest rate. Loans from associates and other related parties are all credit loans.

(l) Other

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

－
Purchases freight 2020 2019
Associated company $ 28,261 $ 38,637
－
Operating expense export 2020 2019
Associated company $ 22,549 $ 29,959
Rental income 2020 2019
Investors with significant
influence
Lealea Enterprise Co. Ltd. $ 6,694 $ 6,726
Associated company
Lealea Technology Co.
Ltd. 4,106 3,952
Associated company 1,080 1,195
Other 10 10
$ 11,890 $ 11,883
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65 -

The rental income collected by the consolidated company from related parties is based on the local general market rate, and the payment period is one-month promissory note.

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Other income 2020 2019
Investors with significant
influence
Lealea Enterprise Co. Ltd. $ 18,989 $ 20,231
Associated company 3,691 1,706
Other 56 96
$ 22,736 $ 22,033
Lease expense 2020 2019
Investors with significant
influence
Lealea Enterprise Co. Ltd. $ 28,217 $ 28,043
Associated company
Rich Development Co.
Ltd. 5,011 4,844
$ 33,228 $ 32,887
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The rent paid by the consolidated company to related parties is based on the local general market rate, and the payment period is one-month promissory note.

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

Tech service fees 2020 2019
Associated company
Lealea Technology Co.
Ltd. $ 24,610 $ 24,409
－
Manufacturing expense steam 2020 2019
Investors with significant
influence
Lealea Enterprise Co. Ltd. $ 92,425 $ 129,785
Environmental maintenance
expense 2020 2019
Investors with significant
influence $ 2,065 $ 2,293
－
Manufacturing expense coal
disposal 2020 2019
Associated company
Lea Jie Energy Co. Ltd. $ 914 $ 914
－
Fuel cost coal 2020 2019
Associated company
Lea Jie Energy Co. Ltd. $ 104,570 $ 135,106
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(m) Salary of senior management

The total remuneration for directors and other senior management is as follows ：

Short-term employee benefits Retirement benefits		2020 $ 19,829 296 $ 20,125		2019
				$ 19,792 199 $ 19,991

66 -

The remuneration of directors and senior management is determined by the remuneration committee in accordance with individual performance and market trends.

(n) Other related parties’ transactions

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Price of contracted
but unfinished Prepaid equipment
（ untaxed ） balance
Type of associate I t e m Dec 31, 2020 Dec 31, 2020
Associated
company
Lealea Software
Technology
Co. Ltd. $ 440 $ -
Price of contracted
but unfinished Prepaid equipment
（ untaxed ） balance
Type of associate I t e m Dec 31, 2019 Dec 31, 2019
Associated
company
Lealea Software
Technology
Co. Ltd. $ 170 $ -
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29. Pledged assets

The following assets of the consolidated company have been provided as collateral for financial institutions.

financial institutions.
Pledged deposit receipt`（`note 6`）` Financial assets at FVTOCI`－` non-current`（`note 10`）` Property, plant and equipment `（`note 13`）`	Dec 31, 2020 $ 2,000 431,732 3,978,909 $ 4,412,641	Dec 31, 2019
			$ 2,000 313,006 4,298,101 $ 4,613,107

30. Significant contingent liabilities and unrecognized commitments

Except as mentioned in other notes, the consolidated company has the following major commitments and contingencies on the balance sheet date ：

67 -

On December 31, 2019 and 2020, the consolidated company still has issued and unused letters of credit. The details are as follows ：

USD EUR JPY NTD	Unit`：`foreign currency in thousands Dec 31, 2020 Dec 31, 2019 $ 66,080 $ 23,057 - 10 503,930 - 290,367 299,553

31. Other matters

  - The consolidated company was affected by the global pandemic of the Covid -19, as business orders dropped, resulting in a significant drop in operating income. However, as the pandemic slows down and policies are loosened, the consolidated company expects that operations will gradually return to normal. In response to the impact of the pandemic, the consolidated company has taken the following actions:

(a) Adjust operational strategies In addition to reducing planned production during the period of the Covid-19 spread, the consolidated company has added fabric e-commerce in its operating strategy, strengthened domestic sales, foundry markets, and newly developed non-textile industry markets. It also added anti-bacterial and anti-virus functions in the clothes in response to epidemic prevention.
(b) Fund raising strategies No major fund-raising activity has been implemented due to the impact of the Covid-19 pandemic.

 - The consolidated company has applied to the following government relief grants `：`

 1. Subsidies on salary and operations received in NT$82,170 thousand were recognized as other income.

 2. Received a reduction of 30% on the water and electricity bills, a total of NT$40,666 thousand from Jan 1[st] to Dec 31[st] 2020.

 3. According to the "Severe Special Infectious Pneumonia Prevention Plan for Industrial Zones during the Epidemic Prevention Plan", company can apply for a 20% reduction in rent and a 50% reduction in public facility maintenance fees. The implementation period of the program is from January 15, 2020 to June 30, 2021.

 - The consolidated company has incorporated the economic impact caused by the epidemic into major accounting estimates based on the information available on the balance sheet date and has no significant impact.

Significantly influencing foreign currency financial assets and liabilities information The following information is summarized and expressed in foreign currencies other than the functional currencies of the consolidated company. The disclosed exchange rates
68 -

refer to the exchange rates of these foreign currencies into functional currencies. Foreign currency assets and liabilities with significant impact are as follows ：

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

Unit ： Foreign currency ／ NTD in thousand
Dec 31, 2020
Foreign currency Exchange rate Carrying amount
Company Financial assets
Currency items
----- End of picture text -----

Li Peng
Enterprise
〃
Intalent
Investments
Limited
Eton
Petrochemical
Li Peng
Enterprise
〃
Eton
Petrochemi
cal
Li Peng
Enterprise
〃
Intalent
Investments
Limited
Eton
Petrochemical USD
$ 97,994,497
28.48
（USD：NTD）
$ 2,790,883
RMB
20,585,960
4.377
（RMB：NTD）
90,105
USD
28,050,660
6.5067
（USD：RMB）
798,878
USD
14,579,614
28.48
（USD：NTD）
415,227
Non currency
items
Financial assets
measured at
FVTPL
－non-current
USD
96,149
28.48
（USD：NTD）
2,738
Investment using
equity method
RMB
68,265,018
4.377
（RMB：NTD）
298,796
IDR
246,819,202,615
0.0020191
（IDR：NTD）
498,353
Investment usin
equity method
USD
800
28.48
（USD：NTD）
23
Financial
liability
Currency items
USD
37,773,605
28.48
（USD：NTD）
1,075,792
RMB
355,788
4.377
（RMB：NTD）
1,557
USD
28,143,338
6.5067
（USD：RMB）
801,517
USD
16,860,220
28.48
（USD：NTD）
480,179

69 -

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

Dec 31, 2019
Foreign currency Exchange rate Carrying amount
Company Financial assets
Currency items
----- End of picture text -----

Li Peng
Enterprise
〃
Intalent
Investments
Limited
Li Peng
Enterprise
〃
Li Peng
Enterprise
Intalent
Investments
Limited
Li Peng
Enterprise USD
$ 136,586,678
29.98
（USD：NTD）
$ 4,094,869
RMB
21,798,341
4.3050
（RMB：NTD）
93,842
USD
17,334,984
6.9640
（USD：RMB）
519,703
Non currency
item
Financial assets
at FVMTPL
－non-current
USD
96,149
29.98
（USD：NTD）
2,883
Investment
using equity
method
RMB
65,430,099
4.3050
（RMB：NTD）
281,677
IDR
7,048,573,893
0.0021567
（IDR：NTD）
15,201
Financial
liability
Currency items
USD
7,035,836
29.98
（USD：NTD）
210,934
USD
17,920,670
6.9640
（USD：RMB）
537,262
Non currency
items
Derived
instrument
USD
148,000,000
（Nominal
principal）
29.98
（USD：NTD）
27,094

The consolidated company’s unrealized foreign currency exchange losses in 2019 and 2020 were NT$91,065 thousand and NT$54,257 thousand, respectively. Due to the wide variety of currencies in foreign currency transactions, it is impossible to disclose the exchange gains and losses according to the foreign currencies that have major impacts.

33. Disclosed items in notes

(a) Major transaction items and (b) reinvestment business related information ：
Loan to others. (attached table 1 ）
Endorsement for others. （ NA ）
Holding marketable securities at the end of the period (excluding investment in subsidiaries, associates and joint venture equity). (attached table 2 ）
70 -
The cumulative amount of buying or selling the same securities reaches NT$300 million or more than 20% of the paid-in capital. （ attached table 3 ）
Acquired real estate with an amount of NT$300 million or more than 20% of the paid-in capital. （ NA ）
Disposal of real estate with an amount of NT$300 million or more than 20% of the paid-in capital. （ NA ）
The amount of purchase and sale of goods with related parties reaches NT$100 million or more than 20% of the paid-in capital. （ attached table 4 ）
Accounts receivables from related parties amount to NT$100 million or more than 20% of the paid-in capital. （ attached table 5 ）
Engage in derivatives trading. （ note 27 ）
Other: business relationships and important transactions and amounts between parent and subsidiary companies and between subsidiaries. (attached table 6 ）
Invested company’s information. （ attached table 7 ）

(c) Information on investments in China `：`

The name of the mainland investee company, main business items, paid-in capital, investment methods, capital remittances and exits, shareholding ratio, investment gains and losses, investment book amount at the end of the period, repatriated investment gains and losses, and limits for investments to mainland China. (attached table 8)
The following major transactions, prices, payment terms, and unrealized gains and losses occurred directly or indirectly with the investee company in mainland China via the third region: (attached table 9)
(1) The amount and percentage of purchases and the ending balance and percentage of related accounts payable.
(2) The amount and percentage of sales and the ending balance and percentage of related accounts receivable.
(3) The amount of property transactions and the profits and losses generated.
(4) The ending balance of the bill endorsement guaranteed or collateral provided and its purpose.
(5) The maximum balance, ending balance, interest rate range and total interest of the current period of the financial intermediation.
(6) Other transactions that have a significant impact on the current profit and loss or financial status, such as the provision or receipt of labor services.
(d) Information on major shareholders: the name, amount and proportion of shareholders with a shareholding ratio of 5% and more. (Attached table 10)

34. Segment information

The information provided to chief operating decision-makers for allocating resources and evaluating departmental performance, focusing on the types of products or services delivered or provided. The reporting departments of the consolidated company are as follows:

71 -

Nylon department-mainly for the manufacture and sale of nylon CHIP and nylon yarn. Weaving department-mainly for the manufacture and sale of plain woven fabrics and knitted fabrics

Trade department-mainly a sales base for various textile products and bulk raw materials

Yarn dyeing and other departments-mainly for the manufacturing and sales of dyed yarn

(a) Departmental income and operational results

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

2020
Weaving Trade Yarn dyeing and
Nylon department department other Adjustment and
department departments Total write-off Total
Operating income (including
allocation income) $ 8,103,956 $ 2,596,558 $ 5,137,519 $ 141,108 $ 15,979,141 ( $ 2,419,680 ) $ 13,559,461
Operating cost （ including
transfer cost ） ( 8,108,841 ) ( 2,393,221 ) ( 5,095,532 ) ( 148,120 ) ( 15,745,714 ) 2,420,821 ( 13,324,893 )
Operating margin （ loss ） ( 4,885) 203,337 41,987 ( 7,012) 233,427 1,141 234,568
Operating expense ( 281,516 ) ( 264,014 ) ( 34,551 ) ( 12,417 ) ( 592,498 ) 1,194 ( 591,304 )
Operating profit （ loss ） ($ 286,401) ($ 60,677) $ 7,436 ($ 19,429) ($ 359,071) $ 2,335 ( 356,736)
Non-operating income and
expenses ( 176,123 )
Net loss before tax ($ 532,859)
2019
Weaving Trade Yarn dyeing and
Nylon department department other Adjustment and
department departments Total write-off Total
Operating income (including
allocation income) $ 12,586,399 $ 3,851,641 $ 1,421,979 $ 146,997 $ 18,007,016 ( $ 3,427,669 ) $ 14,579,347
Operating cost （ including
transfer cost ） ( 12,647,117 ) ( 3,417,269 ) ( 1,408,116 ) ( 156,421 ) ( 17,628,923 ) 3,427,669 ( 14,201,254 )
Operating margin （ loss ） ( 60,718) 434,372 13,863 ( 9,424) 378,093 - 378,093
Operating expense ( 360,664 ) ( 290,082 ) ( 25,843 ) ( 11,357 ) ( 687,946 ) - ( 687,946 )
Operating profit （ loss ） ($ 421,382) $ 144,290 ($ 11,980) ($ 20,781) ($ 309,853) $ - ( 309,853)
Non-operating income and
expenses ( 2,894 )
Net loss before tax ($ 312,747)
----- End of picture text -----

Departmental interests refer to the profits earned by each department, excluding the share of profits and losses of associated companies that adopt the equity method, disposition of associated companies, rental income, interest income, disposition of property, plant and equipment gains and losses, disposition of investment gains and losses, foreign currency exchange net gains (losses), financial instrument evaluation gains and losses, financial costs and income tax expenses. This measurement amount is provided to the chief operating decision maker to allocate resources to the department and measure its performance.

(b) Segment assets

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

Dec 31, 2020
Weaving Trade Yarn dyeing and
Nylon department department other Adjustment and
department departments Total write-off Total
Cash and cash equivalent $ 100 $ 300 $ 430,009 $ 929,354 $ 1,359,763 $ - $ 1,359,763
Financial assets measured at
FVTPL - - 275,695 216,279 491,974 - 491,974
Notes and accounts receivable 1,402,813 373,989 486,270 220,713 2,483,785 ( 453,758) 2,030,027
Loan to related parties
receivable - - - 1,010,329 1,010,329 ( 457,529 ) 552,800
Inventory 1,117,174 780,984 167,588 14,746 2,080,492 ( 477) 2,080,015
Other current assets 38,281 21,540 613,105 170,236 843,162 ( 605,816 ) 237,346
Total current assets 2,558,368 1,176,813 1,972,667 2,561,657 8,269,505 ( 1,517,580 ) 6,751,925
Financial assets measured at
FVTPL - - - 11,825 11,825 - 11,825
Financial assets measured at
FVTOCI - - - 3,106,854 3,106,854 ( 748,192 ) 2,358,662
Investments using equity
method - - - 4,004,889 4,004,889 ( 1,391,588 ) 2,613,301
Property, plant and equipment 3,195,322 2,029,795 32,086 293,076 5,550,279 - 5,550,279
Right-of-use asset 720 - - 214 934 - 934
Other intangible asset 2,952 2,900 - 2,203 8,055 - 8,055
Other non-current asset 163,316 6,509 1,316 379,820 550,961 ( 1,135 ) 549,826
Total assets $ 5,920,678 $ 3,216,017 $ 2,006,069 $ 10,360,538 $ 21,503,302 ($ 3,658,495) $ 17,844,807
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72 -

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Dec 31, 2019
Weaving Trade Yarn dyeing and
Nylon department department other Adjustment and
department departments Total write-off Total
Cash and cash equivalent $ 100 $ 300 $ 304,239 $ 2,528,483 $ 2,833,122 $ - $ 2,833,122
Financial assets measured at
FVTPL - - 242,993 58,104 301,097 - 301,097
Notes and accounts receivable 1,598,149 632,618 232,535 - 2,463,302 ( 533,528) 1,929,774
Loan to related parties
receivable - - - 369,000 369,000 ( 205,000 ) 164,000
Inventory 1,675,589 831,917 25,171 16,984 2,549,661 4,312 2,553,973
Other current assets 46,000 26,467 4,892 57,073 134,432 ( 431 ) 134,001
Total current assets 3,319,838 1,491,302 809,830 3,029,644 8,650,614 ( 734,647 ) 7,915,967
Financial assets measured at
FVTPL - - - 13,447 13,447 - 13,447
Financial assets measured at
FVTOCI - - - 2,403,825 2,403,825 ( 579,807 ) 1,824,018
Investments using equity
method - - - 2,897,358 2,897,358 ( 1,115,248 ) 1,782,110
Property, plant and equipment 3,510,719 2,190,984 34,581 305,260 6,041,544 - 6,041,544
Right-of-use asset 1,191 - - - 1,191 - 1,191
Other intangible asset 5,443 4,177 67 10 9,697 - 9,697
Other non-current asset 34,192 26,008 111 265,216 325,527 - 325,527
Total assets $ 6,871,383 $ 3,712,471 $ 844,589 $ 8,914,760 $ 20,343,203 ($ 2,429,702) $ 17,913,501
----- End of picture text -----

Since the measurement of the liabilities of the consolidated company's department is not provided to the operating decision makers, there is no need to disclose the measurement of the liabilities.

(d) Main products and service income

The main product and service income analysis of the continuing business unit of the consolidated company is as follows:

Nylon chips Petrochemicals Nylon yarn Woven (knitted) fabric Others		2020 $ 4,982,983 3,933,215 1,655,531 2,092,549 895,183 $ 13,559,461		2019
				$ 7,873,906 - 2,343,983 3,221,441 1,140,017 $ 14,579,347

(e) Region-specific information

The consolidated company’s main operation is based in Asia.

The information of the consolidated company’s continuing business income from external customers based on operating location and non-current assets based on asset location is listed below:

ASIA OTHER		Incomefromexternalcustomers 2020 2019 $ 12,764,890 $ 12,737,469 794,571 1,841,878 $ 13,559,461 $ 14,579,347	Incomefromexternalcustomers 2020 2019 $ 12,764,890 $ 12,737,469 794,571 1,841,878 $ 13,559,461 $ 14,579,347		Non-current assets	Non-current assets	Non-current assets
		2020 $ 12,764,890 794,571 $ 13,559,461			Dec 31, 2020		Dec 31, 2019
					$ 5,729,670 - $ 5,729,670		$ 6,112,589 - $ 6,112,589

Non-current assets exclude assets classified as financial instruments and deferred income tax assets.

73 -
(f) Information of main customers

The consolidated company had no customers who accounted for more than 10% of the operating income of the income statement of 2019.

The details of the customers who accounted for more than 10% of the operating income of the consolidated company's income statement of 2020 are as follows:

Oriental Petrochemical		2020 $ 1,518,411

74 -

Li Peng Enterprise Co. Ltd and Subsidiaries

2020

Unit ： NTD thousand ； Foreign currency

Reinvestment company funds to lend to others

Attached Table 1

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

Collateral Financing
Financing
Financial Maximum Reason for Limits Company’s
（ No. Note1 ） Financing Company Loan and loanee （ Statement Account note 2 ） Related party balance for the （ period note 3 ）（ balance Ending note 8 ） actually drawnAmount Interest rate ％（ Nature for financing note 4 ） Transaction （ amounts note 5 ） financingshort-term 6 ）（ note Allowance for bad debt Item Value Borrowing Companyfor Each Financing Amount Limits Total
（ note 7 ）（ note 7 ）
0 Li Peng Enterprise PT INDONESIA Loan to related Yes $ 800,000 $ 800,000 $ 284,800 1.43044~ 2 $ - Operating $ - - $ - $ 948,189 $ 3,792,756
Co., Ltd. LIBOLON FIBER parties 3.1986 turnover
SYSTEM
Eton Petrochemical Loan to related Yes 300,000 300,000 26,163 1.42565~ 2 - Operating - - - 948,189 3,792,756
Co.,Ltd. parties 1.47 turnover
In Talent Investments Loan to related Yes 800,000 800,000 286,366 1.42565~ 2 - Operating - - - 948,189 3,792,756
Limited parties 1.47 turnover
1 Li Mao Investment Li Peng Enterprise Loan to related Yes 80,000 57,000 57,000 0.82040~ 2 - Operating - - - 107,781 431,124
Co., Ltd. Co., Ltd. parties 0.98599 turnover
Lealea Enterprise Co., Loan to related Yes 93,000 93,000 73,000 0.82040~ 2 - Operating - - - 107,781 431,124
Ltd. parties 0.95680 turnover
Li Ling Film Co., Ltd. Loan to related Yes 50,000 50,000 50,000 1.42565~ 2 - Operating - - - 107,781 431,124
parties 1.47 turnover
2 Li Shing Investment Li Peng Enterprise Loan to related Yes 65,000 45,000 45,000 0.82040~ 2 - Operating - - - 85,884 343,537
Co., Ltd. Co., Ltd. parties 0.98599 turnover
Lealea Enterprise Co., Loan to related Yes 75,000 75,000 75,000 0.82040~ 2 - Operating - - - 85,884 343,537
Ltd. parties 0.95680 turnover
3 Hung Hsing Li Peng Enterprise Loan to related Yes 60,000 43,000 43,000 0.82040~ 2 - Operating - - - 80,700 322,799
Investment Co., Co., Ltd. parties 0.98599 turnover
Ltd.
Lealea Enterprise Co., Loan to related Yes 70,000 70,000 70,000 0.82040~ 2 - Operating - - - 80,700 322,799
Ltd. parties 0.95680 turnover
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Note 1 ： Description of the number column: (1) Issuer fill in 0. (2) The invested company is numbered sequentially from Arabic numeral 1 according to the company type.
Note 2 ： Accounts receivable from related parties, accounts receivable from related parties, shareholder transactions, advance payments, temporary payments... and other items in the account, if they are fund loans, the nature of which must be filled in this column. Note 3 ： The maximum balance of funds loaned to others in the current year.
Note 4 ： The nature of the loan should be listed as (1) business contacts or (2) those that are for short-term financing.
Note 5 ： If the nature of the loan is a business transaction, the business transaction amount should be entered. The amount of business transactions refers to the amount of business transactions between the company that lent the funds and the loanee in the most recent year.
Note 6 ： If the nature of the loan is necessary for short-term financing, the reasons for the necessary loan and fund and the purpose of the loan and the target's fund should be specified, such as: repayment of borrowings, purchase of equipment, business turnover... etc.
Note 7 ： Loan and limit for individual objects: 10% of the shareholders' equity of Li Peng Company, Li Mao Company, Li Shing Company and Hung Hsing Company; loan and total amount: Li Peng Company, Li Mao Company, Li Shing Company and 40% of the shareholders' equity of Hung Hsing Company. Li Peng Company, Li Mao Company, Li Shing Company and Hung Hsing Company did not exceed the limit when the original funds were used for the loan.
Note 8 ： If a public listed company makes a loan to the board of directors on a case-by-case basis in accordance with Article 14 Clause 1 of the Guidelines for the Handling of Loans and Endorsements for Public Listed Companies, the amount of the board resolution should be included in the reported balance even though it has not yet allocated funds. In order to expose the risk it bears; after the fund is repaid, the balance after the repayment should be disclosed to reflect the risk adjustment. If the public listed company authorizes the chairman of the board to approve the loan in a specific amount and within a one-year period in accordance with paragraph 2 of Article 14 of the processing guidelines, the loan and the amount approved by the board of directors shall still be used as the balance to be declared. Although the funds will be repaid thereafter, it is still possible to allocate the loan again, so the loan and quota approved by the board of directors should still be used as the reported balance.
75 -

Li Peng Enterprise Co. Ltd and Subsidiaries

Holding securities at the end of the period

For the Year Ended Dec 31, 2020

Attached Table 2

Unit ： NTD thousand

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End of the period
Held Company Marketable securities type Relationship with the Financial statement
％ of Note （ note 4 ）
Name and name （ note 1 ） company （ note 2 ） account Shares （ Units ） [Carrying value] Fair value
（ note 3 ） ownership
Li Peng Enterprise Share
Co. Ltd.
Trade-Van Information NA Financial assets 427,675 $ 21,598 0.29 $ 21,598
Services Co., Ltd. mandatorily
measured at
FVTPL － current
Asia Pacific Telecom Co., 〃〃 3,277,157 33,099 0.09 33,099
Ltd.
Information Technology Total 〃〃 33,750 1,282 0.12 1,282
Services Co. Ltd.
Lealea Enterprise Co., Ltd. The chairman is same as Financial assets 71,743,197 947,010 7.49 947,010
the company, and the measured at
company holds FVTOCI －
15.89% of the shares non-current
and is the legal
director
Taiwan Filament Weaving NA Financial assets 3,302,964 9,730 5.76 -
Development Co., Ltd. mandatorily
measured at
FVTPL －
non-current
Huazhi Venture Capital Co., 〃〃 21,739 217 4.35 -
Ltd.
Juyou Technology Co., Ltd. 〃〃 180,491 1,448 0.54 -
Techgains Pan-Pacific Corp. 〃〃 150,000 430 0.26 -
Book4u Co., Ltd. 〃〃 6,250 - 0.12 -
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End of the period
Marketable securities type and name Relationship with the company Financial statement
Held Company Name （ note 1 ）（ note 2 ） account Shares （ Units ） Carrying value （ note 3 ）％ of Fair value Note （ note 4 ）
ownership
Li Mao Investment Share
Co., Ltd.
Lealea Shareholders who hold 46.62% Financial assets 43,981,710 $ 580,559 4.59 $ 580,559 Pledge
of the equity measured at FVTOCI 16,495,000
－ non-current shares as
collateral for
the issuance
of short-term
notes
Li Peng Company’s parent company 〃 34,177,995 308,286 3.74 308,286
Hung Hsing Share
Investment Co.,
Ltd.
Lealea Shareholders who hold 46.98% Financial assets 32,015,977 422,611 3.34 422,611 Pledge
of the equity measured at FVTOCI 16,212,000sha
－ non-current res as
collateral for
the issuance
of short-term
notes
Li Peng Company’s parent company 〃 24,618,087 222,055 2.69 222,055
Far East New Century NA Financial assets 1,000,000 28,950 0.02 28,950
mandatorily
measured at FVTPL
－ current
Fund beneficiary certificate
Jih Sun Money Market Fund NA 〃 736,870.59 11,016 - 11,016
Li Shing Investment Share
Co., Ltd.
Lealea Shareholders who hold 47% of Financial assets 30,945,623 408,482 3.23 408,482
the equity measured at FVTOCI
－ non-current
Li Peng Company’s parent company 〃 24,152,024 217,851 2.64 217,851
Rich Li Shing's parent company, Li Financial assets 305,000 3,203 0.04 3,203
Peng, is an invested mandatorily
company evaluated using measured at FVTPL
the equity method － current
Far East New Century NA 〃 450,000 13,028 0.01 13,028
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End of the period
Marketable securities type and Relationship with the Financial statement
Held Company Name ％ of Note （ note 4 ）
name （ note 1 ） company （ note 2 ） account Shares （ Units ） [Carrying value] Fair value
（ note 3 ） ownership
Fund beneficiary certificate
Jih Sun Money Market Fund NA Financial assets 2,879,213.91 $ 43,044 - $ 43,044
mandatorily
measured at
FVTPL － current
Capital Money Market Fund 〃〃 1,476,305.40 24,013 - 24,013
Franklin Templeton Sinoam 〃〃 1,247,576.82 13,010 - 13,010
Money Market Fund
Libolon (Shanghai) Financial products
International
Trading Co., Ltd
Tiantianli Hwei Pu NA Financial assets - 11,836 - 11,836
Program mandatorily
measured at
FVTPL － current
Fortune Shuttle 〃〃 - 104,772 - 104,772
Enterprising No. 4
Fortune Shuttle 〃〃 - 50,584 - 50,584
Enterprising No. 3
Tiantianli Enterprising 〃〃 - 5,472 - 5,472
No. 1
Anfu Zuenron No. 1 〃〃 - 927 - 927
Structured deposits
Yuedeying No. 3 NA Financial assets - 321 - 321
mandatorily
measured at
FVTPL － current
Yue Xiang Ying 〃〃 - 1,324 - 1,324
Yue Xiang Ying 〃〃 - 96,453 - 96,453
20120028
Libolon Energy Co., Fund beneficiary certificate Financial assets
Ltd. Jih Sun Money Market Fund NA mandatorily 1,607,792.43 24,036 - 24,036
measured at FVTPL
－ current
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Held Company Name	Marketable securities type and name`（`note 1`）` Relationship with the company`（`note 2`）`	Marketable securities type and name`（`note 1`）` Relationship with the company`（`note 2`）`	Financial statement account	End of the	End of the	period		Note`（`note 4`）`
				Shares`（`Units`）`Carrying value `（`note 3`）`		`％`of ownership	Fair value
Eton Petrochemical Co.,Ltd.	Fund beneficiary certificate Jih Sun Money Market Fund	NA	Financial assets mandatorily measured at FVTPL `－`current	267,965.41	4,006	-	4,006

Note 1 ： The securities mentioned in this table refer to stocks, bonds, beneficiary certificates and securities derived from the above items that fall within the scope of IFRS No. 9 "Financial Instruments".
Note 2 ： If the securities issuer is not a related party, this column is not required to be filled up.
Note 3 ： If measured by fair value, please fill in the book value after fair value evaluation adjustment and deducting allowance for the book value in column B; if it is not measured by fair value, please fill in the amortized cost in column B (after deducting the allowance for loss) carrying amount.
Note 4 ： The listed securities have users who are restricted due to the provision of guarantees, pledged loans, or other agreed-upon. The remarks column should indicate the number of guarantees or pledged shares, the amount of guarantees or pledges, and the usage restrictions.
Note 5 ： For information about the equity of invested subsidiaries and associates, please refer to attached table 7, attached table 8 and attached table 9.
79 -

Li Peng Enterprise Co. Ltd and Subsidiaries

The cumulative amount of buying or selling the same securities reaches NT$300 million or more than 20% of the paid-in capital

Jan 1 to Dec 31, 2020

Attached Table 3

Unit ： thousand

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company Buy /sell Type and nameSecurities （ note 1 ） Financial statement accounting （ partners Trading note 2 ） Relationship （ note 2 ） Currency Shares Beginning of pAmount eriod Shares Buy （ note3Amount ） Shares Value Sell （ note3Carrying amount ） Disposition of P&L Shares End of period (note 6Amount ）
Li Peng P T. INDONESIA Investment using Unrelated Unrelated NTD - $ - 5,730,000 $ 757,965 - $ - $ - $ - 5,730,000 $ 752,312
Enterprise LIBOLON FIBER equity method party party （ note 5 ） USD 25,420
Co., Ltd. SYSTEM （ note 5 ）
Libolon Financial products
(Shanghai)
Internation
al Trading
Co.,Ltd.
Fortune Shuttle Financial assets －－ RMB - 31,951 - 74,376 - 83,932 82,390 1,542 - 23,937
Enterprising mandatorily （ note 8 ）
No. 4 measured at
FVTPL － current
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Note 1 ： The securities mentioned in this table refer to stocks, bonds, beneficiary certificates and securities derived from the above items.

Note 2 ： Investors who use the equity method for securities accounts must fill in these two columns, and the rest are not required.

Note 3 ： The cumulative buy-in and sell-off amount should be calculated separately at fair value whether it reaches NT$300 million or 20% of the paid-in capital.

Note 4 ： The amount of paid-in capital refers to the amount of paid-in capital of the parent company. If the issuer’s stock has no denomination or the denomination per share is not NT$10, the transaction amount of 20% of the paid-in capital shall be calculated based on the 10% of the equity attributable to the shareholder of the parent company on the balance sheet.

Note 5 ： The buy-in in this period includes participation in cash capital increase.

Note 6 ： The amount at the end of the period includes the profit and loss recognized by the equity method and related adjusted items.

Note 7 ： As of December 31, 2020, RMB to NTD exchange rate was 4.377; January 1, 109 to December 31, 2020, RMB to NTD average exchange rate was 4.2817.

Note 8 ： The disposition of profit and loss is listed in interest income.

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Li Peng Enterprise Co. Ltd and Subsidiaries

The amount of purchases and sales with related parties reaches NT$100 million or more than 20% of the paid-in capital

Jan 1 to Dec 31, 2020

Attached Table 4

Unit ： NTD thousand

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Trading conditions and
general trading Notes and accounts receivable
Transactions
circumstances and reasons (payable)
(note 1)
Note (note
Buyer (Seller) Related Party Relationship ％ of total 2 ）
notes and
Buy (sell) ％ of total buy
Amount Credit period Unit Price Credit period Balance accounts
goods (sell)
receivable
(payable)
Li Peng Lealea Enterprise Chairman is same as Buy $ 486,090 7 Notes Not Not applicable [Notes and ] ( 7 )
Enterprise Co., Co., Ltd. the company receivable 30 applicable accounts
Ltd. days after payable
shipment ( $ 60,318 )
〃〃〃 Sell ( 574,043 ) ( 6 ) 〃〃〃 Notes and 4
accounts
receivable
89,732
〃 Li Ling Film Co., 〃 Sell ( 319,172 ) ( 3 ) Notes 〃〃 Notes and 6
Ltd. receivable 60 accounts
days after receivable
shipment 112,332
〃 Libolon 100% of the company's Sell ( 1,062,739 ) ( 10 ) T/T 180 days 〃〃 Notes and 23
(Shanghai) indirect shares are after accounts
International investee shipment receivable
Trading Co.,Ltd. 451,347
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Note 1: If the related party's transaction conditions are different from the general transaction conditions, the unit price and credit period column should state the difference and the reason. Note 2: If there is an advance account receivable (payable), the reason, contractual terms, amount, and differences from the general transaction type should be stated in the remarks column. Note 3: The amount of paid-in capital refers to the amount of paid-in capital of the parent company. If the issuer’s stock has no denomination or the denomination per share is not NT$10, the transaction amount of 20% of the paid-in capital shall be calculated based on the 10% of the equity attributable to the owner of the parent company on the balance sheet.

81 -

Li Peng Enterprise Co. Ltd and Subsidiaries

Receivables from related parties amount to NT$100 million or more than 20% of the paid-in capital

Dec 31, 2020

Attached Table 5

Unit ： NTD thousand

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Overdue Amounts received
Account receivable Balance Allowance for bad
Related party Relationship Turnover rate in subsequent
company (note 1) Amount Disposition debts
period
Li Peng Enterprise Co., Libolon (Shanghai) A related party in which the Accounts
Ltd. International Trading company indirectly holds Receivable 2.16 times $ - - $ 61,682 $ -
Co., Ltd. 100% of its shares $ 451,347
Li Peng Enterprise Co., Li Ling Film Co., Ltd. Chairman is same as the 112,332 - - 33,286 -
Ltd. company 4.57 times
Li Peng Enterprise Co., Eton Petrochemical Co., A related party in which the Other receivables
Ltd. Ltd. company indirectly holds 298,572 - - - 298,572 -
75% of its shares
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Note 1: Please fill in separately according to the accounts receivable, bills, other receivables…and so on.

Note 2: The amount of paid-in capital refers to the amount of paid-in capital of the parent company. If the issuer’s stock has no denomination or the denomination per share is not NT$10, the transaction amount of 20% of the paid-in capital shall be calculated based on the 10% of the equity attributable to the shareholder of the parent company on the balance sheet.

82 -

Unit ： NTD thousand

Li Peng Enterprise Co. Ltd and Subsidiaries

Intercompany relationships and significant intercompany transactions

Jan 1 to Dec 31, 2020

Attached Table 6

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Intercompany transactions
％ of
No. Relationship Consolidated Net
Company name Counter party
（ note 1 ）（ note 2 ） Financial statements item Amount Terms Revenue
or Total Assets
（ note 3 ）
0 Li Peng Company Libolon (Shanghai) Parent to Accounts receivable $ 451,347 no major differences 3
International Trading granddaughter between trading
Co.,Ltd. company conditions and
general customers
0 〃〃〃 Sales revenue 1,062,739 〃 8
0 〃〃〃 Temporary payments 198 〃 -
0 〃〃〃 Advance sales receipts 1,135 〃 -
0 〃〃〃 Outsourcing expense ( 3,170 ) 〃 -
0 〃 In Talent Investments (1) Account payable 306 〃 -
Limited
0 〃〃〃 Other payables 152,394 〃 -
0 〃〃〃 In-transit inventory 163 〃 -
0 〃〃〃 Purchase 729 〃 -
0 〃〃〃 Loan to related parties 286,366 〃 2
0 〃〃〃 Interest receivable 286 〃 -
0 〃〃〃 Interest income 1,089 〃 -
0 〃 Li Shing Investment Co., (1) Loan from related parties 45,000 〃 -
Ltd.
0 〃〃〃 Interest expense 377 〃 -
0 〃〃〃 Interest payable 31 〃 -
0 〃 Hung Hsing Investment (1) Loan from related parties 43,000 〃 -
Co., Ltd. payable
0 〃〃〃 Interest expense 358 〃 -
0 〃〃〃 Interest payable 30 〃 -
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Intercompany transactions
％ of
No. Relationship Consolidated Net
Company name Counter party
（ note 1 ）（ note 2 ） Financial statements item Amount Terms Revenue
or Total Assets
（ note 3 ）
0 Li Peng Company Li Mao Investment Co., (1) Loan from related parties $ 57,000 no major differences -
Ltd. between trading
conditions and
general customers
0 〃〃〃 Interest expense 476 〃 -
0 〃〃〃 Interest payable 40 〃 -
0 〃 Libolon Energy Co., Ltd. (1) Rental income 3 〃 -
0 〃 Eton Petrochemical (1) Service income 1,864 〃 -
Co.,Ltd.
0 〃〃〃 Rental income 152 〃 -
0 〃〃〃 Service expense 880 〃 -
0 〃〃〃 Account receivable 472 〃 -
0 〃〃〃 Other receivable 298,572 〃 2
0 〃〃〃 Other accrued expense 924 〃 -
payable
0 〃〃〃 Loan to related parties 26,163 〃 -
0 〃〃〃 Interest receivable 5 〃 -
0 〃〃〃 Interest income 9 〃 -
1 In Talent Investments Eton Petrochemical (3) Service income 596 〃 -
Limited Co.,Ltd.
1 〃〃〃 Account receivable 709 〃 -
1 〃〃〃 Other receivable 154,752 〃 1
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Note 1: The business transaction information between the parent company and its subsidiaries should be indicated in the serial number column respectively. The method of filling in the serial number is as follows:

(1) Fill in 0 for the parent company.

(2) Subsidiaries are numbered sequentially starting from Arabic numeral 1 based on the company.

Note 2: The relationship of intercompany has the following three types, and the type can be marked (if it is the same transaction between parent and subsidiaries; or parent company to subsidiaries, there is no need to repeat disclosure. For example: parent company to subsidiary transaction, if the parent company has been disclosed, the subsidiary part

84 -

does not need to be repeatedly disclosed; for the transactions of a subsidiary to a subsidiary, if one of the subsidiaries has been disclosed, the other subsidiary need not be repeatedly disclosed):

(1) Parent company to subsidiary.
(2) Subsidiary to parent company.
(3) Subsidiary to subsidiary.
Note 3: The transaction amount is calculated on the ratio to the consolidated total revenue or assets. If it is an asset-liability item, it will be calculated as the ending balance of the consolidated total assets; if it is a profit and loss item, the cumulative amount in the period will be calculated as the total consolidated, calculated by the method of receipt.
Note 4: The important transactions in this table can be determined by the company based on the principle of materiality.
85 -

Li Peng Enterprise Co., Ltd. and Subsidiaries

Unit ： NTD thousand

Names, Locations, And Related Information of Investees

Jan 1 to Dec 31, 2020

Attached Table 7

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Original investment amount Balance at the end of period Net Income Share of
Related party (Losses) of the Profits/Losses
Buyer (Seller) （ note 1 、 2 ） Location Main business and products End of period End of last year Shares Ratio ％ Carrying amount Investee of Investee Note
（ note 4(2) ）（ note 4(3) ）
Li Peng Enterprise Co., In Talent Investments Samoa Reinvestment related business $ 65,893 $ 65,893 2,000,000 100.00 $ 298,896 $ 12,138 $ 12,388
Ltd. Limited
Li Mao Investment Co., 11th Floor, No.162 Songjiang Reinvestment in various 415,715 415,715 40,356,000 53.38 410,776 ( 292 ) ( 156 )
Ltd. Road, Taipei City production businesses,
securities investment,
banks.
Hung Hsing Investment 〃〃 401,449 401,449 26,296,000 53.02 310,106 ( 331 ) ( 176 )
Co., Ltd.
Li Shing Investment Co., 〃〃 415,280 415,280 42,400,000 53.00 339,691 ( 6,427 ) ( 3,406 )
Ltd.
Li Hao Investment Co., 〃〃 363,629 363,629 35,244,000 46.62 396,375 ( 5,359 ) ( 2,498 )
Ltd.
Li Zan Investment Co., 〃〃 329,212 329,212 21,540,000 46.83 242,742 ( 11,925 ) ( 5,584 )
Ltd.
Lealea Technology Co., 〃 Technology software services 40,408 40,408 7,041,004 18.54 115,858 129,367 23,990
Ltd.
Li Ling Film Co., Ltd. 〃 Nylon film production 20,000 20,000 2,000,000 3.33 15,469 ( 217,559 ) ( 7,252 )
Rich Development Co., 8th Floor, No. 99, Jilin Road, Entrusted builders to build 492,829 492,829 51,117,852 6.87 928,252 103,976 7,144
Ltd. Taipei City commercial buildings and
lease and sell residential
buildings
Fu Li Transport Co., Ltd. No. 122, Zili Second Street, Automobile container freight 28,000 28,000 2,800,000 20.00 36,357 11,637 2,327
Wuqi District, Taichung City industry, warehousing
industry, automobile and
parts manufacturing
industry
Lea Jie Energy Co., Ltd. 4th Floor, No.162 Songjiang Coal retail and wholesale 90,000 90,000 9,000,000 30.00 100,656 25,730 7,698
Road, Taipei City
PT. LONG JOHN JALAN UBRUG, Kel. Knitted fabric, fabric - 15,200 - - - - -
INNOVATION Kembangkuning, Kec. improvement 註 2
MATERIAL Jatiluhur, Kab. Purwakarta,
Prop. JawaBarat
Libolon Energy Co., Ltd. No. 38, Gongye Road, Houliao Renewable energy, self- 21,000 - 2,100,000 70.00 18,826 ( 3,105 ) ( 2,660 )
Village, Fangyuan Township, powered generation 註 3
Changhua County equipment and
cogeneration industry
Pt.Indonesia Libolon Lantai 1 JI. Cideng Barat No. 15, Weaving, dyeing, finishing, 757,965 - 5,730,000 30.00 752,312 ( 165,491 ) 3,133
Fiber System RT.011/RW.001 Kel. Duri processing, manufacturing,
Pulo. Kec, Gambir. DKZ and trading of man-made
Jakarta fibers
Eton Petrochemical 4th Floor, No.162 Songjiang Chemical raw material 9,000 - 900,000 75.00 13,293 5,725 4,293
Co.,Ltd. Road, Taipei City wholesale
In Talent Investments Libolon (Shanghai) Room 532, 5th Floor, No. 88 Weaving, dyeing, finishing, 65,893 65,893 2,000,000 100.00 298,235 11,804 -
Limited International Trading Taigu Road, Waigaoqiao Free processing, manufacturing,
Co., Ltd. Trade Zone, Shanghai and trading of man-made
fibers
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Note 1: If a public offering company has a foreign holding company and uses consolidated statements as the main financial statements in accordance with local laws and regulations, the disclosure of information about the foreign invested company may only disclose relevant information to the holding company.

Note 2: Li Peng Enterprise Co., Ltd. disposal PT. LONG JOHN INNOVATION MATERIAL in March 2020 and recognized its investment losses.

Note 3: The investment loss recognized by Libolon Energy Co., Ltd. in this period includes the investment loss incurred when the control capability is acquired.

Note 4: If it is not in the situation described in Note 1, fill as in accordance to the following regulations:

(1) The columns of "name of investee company", "location", "main business item", "original investment amount" and "end-of-term shareholding" shall be based on the reinvestment status of the company (public offering) and each direct investment or fill in the reinvestment status of the invested company indirectly controlled in order, and indicate the relationship between each invested company and the (public offering) company (if it is a subsidiary or a granddaughter company) in the remarks column.

(2) In column B of "Invested Company's Current Profit and Loss", the amount of current profit and loss of each invested company should be filled in.

(3) Column B of "Investment Profits and Losses Recognized in the Current Period" only needs to fill in the amount of profit and loss of each subsidiary recognized by the (public offering) company for direct reinvestment and each invested company evaluated by the equity method, and the rest is exempt fill. When filling in the "recognition of the current profit and loss amount of each subsidiary for direct reinvestment", it should be confirmed that the current profit and loss amount of each subsidiary has included the investment profit and loss of its reinvestment that should be recognized in accordance with the regulations.

Note 5: Please refer to Attached Tables 8 and 9 for relevant information of China investee companies.

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Li Peng Enterprise Co., Ltd. and Subsidiaries

Information on investment in China

Jan 1 to Dec 31, 2020

Attached Table 8

Unit ： NTD thousand, original currency in yuan

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Beginning of the Investment amount remitted or
Related party in China Main business Paid-in capital Investment method investment amount remitted from Cumulative Taiwan period recovered in the current Outflow Inflow period investment amountEnd of the periodaccumulated Remit from Taiwan current profit and company’s Invested loss % of shares heldThe company’s investment or indirect direct Recognized in this Investment profits and losses (note 2B) period carrying amount at end of period Investment Investment income Taiwan as of the remitted back to current period
Libolon (Shanghai) Weaving, dyeing, $ 65,893 Note 2 (2) $ 65,893 $ - $ - $ 65,893 $ 11,804 100 $ 11,804 $ 298,235 $ -
International finishing, USD 2,000,000 ( USD 2,000,000 ) ( USD 2,000,000 )
Trading Co., Ltd. processing,
manufacturing, and
trading of
man-made fibers
Accumulated Investment in Mainland China Investment Amounts Authorized by
Upper limit on investment
as of December 31, 2020 Investment Commission, MOEA
USD 2,000,000 USD 2,000,000
$ 5,689,135
NTD 65,893 NTD 65,893
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Note 1: 2020 annual average exchange rate RMB to NTD=1: 4.2817

Note 2: The investment methods are divided into the following three types, just indicate the types:

(1) Go directly to the mainland for investment.
(2) Reinvest in mainland China through a third-region company (please specify the investment company in the third region).
(3) Other methods.

Note 3: In the current period recognized investment profit and loss column:

(1) If it is under preparation and there is no investment gain or loss, it should be indicated.
(2) The investment profit and loss recognition basis are divided into the following three types, which should be specified.
A. The financial statements that have been verified by international accounting firms in partnership with the Republic of China Accounting Firm.
B. The financial statements of the visa are checked by the Taiwanese parent company's visa accountant.

C. Others.

Note 4: The relevant figures in this table should be presented in New Taiwan Dollars.

88 -

Li Peng Enterprise Co., Ltd. and Subsidiaries

The following major transactions with mainland investee companies directly or indirectly via a third region, their prices, payment terms, unrealized profits and losses, and other relevant information Jan 1 to Dec 31, 2020

Attached Table 9

Unit ： except for specifically indicated in NTD thousand

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Notes, accounts receivable
Purchase, sale （ Note ） Terms
(payable) Unrealized profit
Related Party in China Transaction Price Note
Compare to normal (loss)
Amount % Payment terms Amount %
trade
Libolon (Shanghai) Sale ( $ 1,062,739 ) ( 10 ) Set according to local 180 days after Similar Accounts $ 151
International market conditions, shipment, the Receivable
Trading Co., Ltd. trading conditions collection period $ 451,347 23
are similar to will be extended
general customers depending on
local conditions
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Note: In the case of property transactions or other types of transactions, the terms should be modified according to the circumstances.

89 -

Li Peng Enterprise Co., Ltd.

Information of main shareholder

Dec 31, 2020

Attached Table 10

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Share
Main Shareholders
Shares held Share hold ratio
Lealea Enterprise Co., Ltd. 145,353,853 15.89
Li Hao Investment Co., Ltd. 49,213,968 5.38
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Note 1: The main shareholder information is based on the last business day at the end of the quarter, calculated by the shareholders of the company’s ordinary shares and special shares that have completed unregistered delivery (including treasury shares) totaling more than 5% of data. The share capital recorded in the company's consolidated financial report and the actual number of shares delivered without registration may be different due to various calculation bases.
Note 2: The information above is that shareholders deliver shares to the trust, it is disclosed in individual accounts by the trustee who opened the trust account by the trustee. As for the shareholder's declaration of insider's equity holding more than 10% of the shares in accordance with the Securities and Exchange Act, his shareholding includes his own shareholding plus the shares delivered to the trust and the right to use the trust property, etc., please refer to the public information for information on insider's equity declaration observatory site.
90 -

Li Peng Enterprise Co., Ltd.

"Consolidated Financial Statements of Affiliated Companies"

Accountant’s Review Report (omitted)

2020

91 -

One. Consolidated financial statements of related companies

A. Consolidated balance sheet of related companies (omitted).
B. income statement of the consolidation of related companies (omitted).

TWO. Notes to the consolidated financial statements of related companies

A. Subsidiary company details:

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Share hold
Subsidiary company Relationship with ratio ／
Business function
name parent company Invested
amount ratio
In Talent Investments 100% directly owned Reinvestment related 100.00%
Limited. subsidiary business
Libolon (Shanghai) 100% indirectly Weaving, dyeing, 100.00%
International Trading owned subsidiary finishing,
Co.,Ltd. processing,
manufacturing, and
trading of
man-made fibers
Li Mao Investment Co., 53.38% directly Reinvestment in 53.38%
Ltd. owned subsidiary various production
businesses,
securities
investment
companies, banks
Hung Hsing Investment 53.02% directly Reinvestment in 53.02%
Co., Ltd. owned subsidiary various production
businesses,
securities
investment
companies, banks
Li Shing Investment Co., 53.00% directly Reinvestment in 53.00%
Ltd. owned subsidiary various production
businesses,
securities
investment
companies, banks
Libolon Energy Co., Ltd. 70% directly owned Renewable energy 70.00%
subsidiary self-powered
generation
equipment and
cogeneration
industry
Eton Petrochemical 75% directly owned Chemical raw material 75.00%
Co.,Ltd. subsidiary wholesale
Eton Petrochemical 100% indirectly Chemical raw material 100.00%
International Co.,Ltd. owned subsidiary wholesale
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92 -
B. Including changes in the subsidiary companies in the consolidated financial statements of the related companies in the current period: adding Eton Petrochemical Co., Ltd., Eaton Petrochemical International Co., Ltd. and Libolon Energy Co., Ltd. in the current period.
C. Subsidiary companies not included in the consolidated financial statements of related companies for the current period: NA.
D. The adjustment and treatment method of the subsidiary company's fiscal year different from that of the parent company: NA.
E. The adjustment and treatment method of the subsidiary company's accounting policy and the parent company's difference: NA.
F. Special risks of foreign associated companies' operations: NA.
G. The distribution of surplus of each associated company is restricted by laws or contracts: NA.
H. Method and time limit for amortization of combined debit (credit) items: NA.
I. Disclosure matters separately:
(1) Business relations and important transactions between parent and subsidiary companies: Please refer to Attached Table 6 of the consolidated financial report of Li Peng Enterprise Co., Ltd. and its subsidiaries.
Financial Links: Please provide detailed information on Attached Table 1 of the consolidated financial report of Li Peng Enterprise Co., Ltd. and its subsidiaries.
(3) Endorsement guarantee: NA
(4) Derivative financial products: Please refer to Note 27 of the consolidated financial report of Li Peng Enterprise Co., Ltd. and its subsidiaries.
(5) Significant contingencies: please specify Note 30 of the consolidated financial report of Li Peng Enterprise Co., Ltd. and its subsidiaries.
(6) Significant post-period events: NA
(7) Holds of bills and marketable securities: please refer to Attached Table 2 of the consolidated financial report of Li Peng Enterprise Co., Ltd. and its subsidiaries.
J. Other: NA
93 -

AI assistant

LP — Annual Report 2020

51810_rns_2020-11-13_ac7cf171-c1ec-44a7-8862-deda6dba2c78.pdf

§DIRECTORY§

REPRESENTATION LETTER

Independent Auditor’s Report

To Li Peng Enterprise Corporation Limited

Opinion

Basis for Opinion

Key Audit Matters

The Actual Occurrence of Sales Revenue

Other Matter

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

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements

Unit ： Thousands of NTD

Li Peng Enterprise Co Ltd and Subsidiaries

Consolidated Statements of Comprehensive Income

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Li Peng Enterprise Co Ltd and Subsidiaries

Li Peng Enterprise Co Ltd and Subsidiaries Consolidated Statements of Cash Flows Jan 1 to Dec 31, 2019, 2020

Unit ： Thousands of NTD

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Li Peng Enterprise Corporation Limited and Subsidiaries Consolidated Financial Statement Note Jan 1 to Dec 31, 2019, 2020

4. Major Accounting Policies Descriptions

Current Liabilities include ：

(l) Financial Instruments

1. Financial Asset

(m) Preparation of Liabilities

Commodity Sales Revenue

(p) Borrowing Cost

(q) Government Subsidies

(r) Employee Benefits

(s) Treasury Stock

(t) Income Tax

2.Deferred Income Tax

8. Notes and Accounts Receivable

Accounts Receivable

Dec 31, 2020

11. Subsidiaries

12. Investments Using Equity Method Invested Associates

PT. INDONESIA LIBOLON FIBER SYSTEM

Summarized Information on Each Insignificant Associates ：

13. Property, Plant and Equipment

(continued from last page ）

(Continued from last page)

18. Retirement Benefit Plans

(b) Defined benefit plans

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(f) Expenses for employee benefits

22. Continuing operating business unit’s income tax

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23. Loss per share

24. Business consolidation

25. Equity transactions with non-controlling interests

26. Capital risk management

27. Financial instruments

Sensitivity analysis

Dec 31, 2020

Dec 31, 2019

Dec 31, 2019

28. Trading with Related Parties

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(g) Acquisition of property, plant and equipment

(k) Loan from related parties

(l) Other

(m) Salary of senior management

29. Pledged assets

30. Significant contingent liabilities and unrecognized commitments

31. Other matters

33. Disclosed items in notes

(c) Information on investments in China ：

34. Segment information

(a) Departmental income and operational results

(b) Segment assets

Attached Table 1

Attached Table 2

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LP Annual Report 2020

Unit `：` Thousands of NTD

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Unit `：` Thousands of NTD

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Current Liabilities include `：`

Summarized Information on Each Insignificant Associates `：`

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(c) Information on investments in China `：`

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