LP - Annual Report 2021 | FinancialReports.eu

Stock Code: 1447

Li Peng Enterprise Corporation Limited and Subsidiaries

Consolidated Financial Statements for the Years Ended December 31, 2021 and 2020 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	14-15	1
	b.	The Authorization of Financial Statements	15	2
	c.	Application of New and Revised International Financial	15-17	3
		Reporting Standards
	d.	Major Accounting Policies Descriptions	17-32	4
	e.	Critical Accounting Judgments and Key Sources of	33	5
		Estimation, and Uncertainty
	f.	Major Accounting Item Descriptions	33-58	6-24
	g.	Trading with Related Parties	64-71	29
	h.	Pledged Assets	71	30
	i.	Significant Contingent Liabilities and Unrecognized	72	31
		Commitments
	j.	Loss from Major Disasters	-	-
	k.	Major Events After Reporting Period	-	-
	l.	Others	57-64`、`72-75	25-28, 32-33
	m.	Other Disclosure
		(1) Related information on major transactions	75	34
		(2) Related information on reinvestment	75	34
		(3) Related information on investments in China	76	34
		(4) Information on major shareholders	76	34
	n.	Segment Information	76-79	35
10.	Affiliates’ Consolidated Financial Statements		94-96	-

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, 2021, under the Criteria Governing the Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises are the same as those included in the consolidated financial statements prepared in conformity with 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

28 March, 2022

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, 2021 and 2020, 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, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and 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, 2021. 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, 2021 are stated as follows:

The Authenticity of the sales revenues from the new top 10 major clients of the Nylon products

The Company comprises of nylon department, weaving department, and trading department. Because the nylon product sales revenue accounts for roughly 31% of the opearational revenue, and the variations in sales revenue is greater from the top 10 clients of the nylon products, the accountant will list the authenticity of the the sales revenues from the new top 10 major clients of the nylon products as the key auditing matter. Please refer to Note 4 in the consolidated financial report for the reference of the related accounting policy concerning income recognition.

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 2021 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, 2021 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 Financial Supervisory Commission ROC vetted Document no. 1000028068 Document no. 0930160267

March 28, 2022

Unit ： Thousands of NTD

Li Peng Enterprise Co Ltd and Subsidiaries Consolidated Balance Sheets Dec 31, 2020, 2021

Code 1100 1110 1150 1160 1170 1180 1210 130X 1410 1476 1479 11XX 1510 1517 1550 1600 1755 1780 1840 1915 1990 15XX 1XXX Code 2100 2110 2150 2160 2170 2180 2219 2220 2230 2250 2280 2320 2399 21XX 2540 2570 2580 2640 2670 25XX 2XXX 3110 3200 3310 3320 3350 3300 3400 3500 31XX 36XX 3XXX	Assets Current Assets Cash and cash equivalents (Note 6`）` Financial assets at fair value through profit or loss - current`（`Note 7`）` Notes receivable, net`（`Note 8`）` Notes receivable from related parties, net`（`Note 29`）` Accounts receivable, net`（`Note 8`）` Accounts receivable from related parties, net`（`Note 29`）` Loan to related parties`（`Note 29`）` Inventory`（`Note 9`）` Prepayments Other financial assets - current`（`Note 10 and 30`）` Other current assets Total current assets Non-current assets Financial assets at fair value through profit or loss`－`non-current`（`Note 7`）` Financial assets at fair value through other comprehensive income`－`non-current `（`Note 11`）` Investment adjustments for Using Equity Method`（`Note 13`）` Property, plant, equipment`（`Note 14`）` Right of use asset`（`Note 3 and 15`）` Other intangible assets`（`Note 16`）` Deferred tax assets`（`Note 23`）` Prepayment for equipment Other non-current assets Total non-current assets Total Assets Liabilityand Equity Current liability Short-term loan`（`Note 17`）` Short-term corporate bonds payable`（`Note 17`）` Notes payable Notes payable – related parties`（`Note 29`）` Accounts payable Accounts payable`－`related parties`（`Note 29`）` Other payable`（`Note 29`）` Loan from related parties`（`Note 29`）` Current tax liabilities`（`Note 23`）` Current provisions Lease liability`－`current`（`Note 15`）` Long-term loan due in a year`（`Note 18`）` Other current liability Total current liabilities Non-current liability Long-term loan`（`Note 18`）` Deferred income tax liability`（`Note 23`）` Lease liability`－`non-current`（`Note 15`）` Accrued pension liability, net`－`non-current`（`Note 19`）` Other non-current liability Total non-current liabilities Total liability Equity Attributable to Shareholders of the Parent`（`Note 20`）` Common stock Capital reserve Retained earning Legal reserve Special reserve Accrued loss Total retained earnings Other equity Treasury stock Total Equity to Shareholders of the Parent Non-controlling interests`（`Note 20`）` Total equity Total of Liability and Equity		Dec 31,2021		`％` 7 2 - 1 13 1 3 16 1 1 - 45 - 11 13 28 - - 2 1 - 55 100 14 4 - - 10 1 4 1 - - - - 1 35 9 1 - 1 - 11 46 46 1 3 1 - 4 - 2) 49 5 54 100		Dec 31,2020
		`金`	`額` $ 1,331,196 485,362 88,906 192,906 2,560,254 159,361 565,160 3,158,670 195,882 214,717 17,801 8,970,215 9,902 2,147,276 2,626,184 5,494,382 977 5,352 311,341 180,590 10,578 10,786,582 $ 19,756,797 $ 2,795,000 800,000 38,370 85,560 2,017,959 118,828 773,134 113,000 7,854 5,174 177 31,250 167,715 6,954,021 1,793,750 146,854 362 256,602 1,686 2,199,254 9,153,275 9,144,872 185,591 525,527 229,670 42,496) 712,701 62,608) 330,507) 9,650,049 953,473 10,603,522 $ 19,756,797			`金`	`額` $ 1,359,763 491,974 33,170 52,264 1,782,834 161,759 552,800 2,080,015 56,927 174,551 5,868 6,751,925 11,825 2,358,662 2,613,301 5,550,279 934 8,055 365,958 169,784 14,084 11,092,882 $ 17,844,807 $ 2,044,000 1,120,000 54,765 8,705 961,089 97,135 472,257 85,000 2,803 20,372 107 155,000 135,187 5,156,420 1,875,000 146,650 541 235,805 1,176 2,259,172 7,415,592 9,144,872 134,620 525,527 602,637 662,075) 466,089 168,713 432,403) 9,481,891 947,324 10,429,215 $ 17,844,807		`％`
		( ( (		(		( (		( (	8 3 - - 10 1 3 12 - 1 - 38 - 13 15 31 - - 2 1 - 62 100 11 6 - - 5 1 3 1 - - - 1 1 29 11 1 - 1 - 13 42 51 1 3 4 4) 3 1 3) 53 5 58 100

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, 2020, 2021 Unit ： Thousands of NTD Except loss per share

Code 4000 Operating revenue`（`Note4,21,29`）` 5000 Operating cost`（`Note 9, 29`）` 5900 Operating margin 5910 Unrealized profit on sales to associates 5920 Realized profit on sales to associates 5950 Realized operating margin Operating expense`（`Note 29`）` 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 profit ( loss) Non-operating income and expenses 7100 Interest income`（`Note 22, 29`）` 7010 Other income`（`Note 22, 29`）` 7020 Other profit and loss`（`Note 22, 29`）` 7050 Finance cost`（`Note 22`）` 7060 Share of profits of associates 7000 Total non-operating income and loss		2021		`％` 100 96 4 - - 4 2 1 - - 3 1 - - - - - -		2020
		Amount $ 24,252,436 23,111,115 1,141,321 - 241 1,141,562 448,261 227,688 109,783 1,433 787,165 354,397 18,745 51,791 58,853 ) 41,592 ) 17,160 12,749)				Amount $ 13,559,461 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)		`％`
	( ( (				( ( ( ( ( (		( ( (	100 98 2 - - 2 2 2 1 - 5 3) - 1 2 ) - - 1)

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Code 7900 Net profit (loss) before tax 7950 Income tax (expense) profit `（`Note 4, 23`）` 8200 Net profit (loss) of the year Other comprehensive income (net) 8310 Uncategorized items profit and loss`：` 8311 Measure on defined benefit plans 8316 Unrealized gain/(loss) on investments in equity instruments at fair value through other comprehensive income 8320 Share of other comprehensive gain of associates and joint ventures 8360 Items that may be reclassified subsequently to profit or loss`：` 8361 Exchange differences resulting from translation on foreign operations 8300 Total other comprehensive income of the year 8500 Total comprehensive income of the year Net profit (loss) attributable to`：` 8610 Shareholder of the parent 8620 Non-controlling interests 8600 Comprehensive income attributable to`：` 8710 Shareholders of the parent 8720 Non-controlling interests 8700 9710 Earning (loss) per share`（`Note 24`）` Basic earnings per share 9810 Diluted earnings per share		2021

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

Unit ： Thousands of NTD

Consolidated Statements of Changes in Equity

Jan 1 to Dec 31, 2020, 2021

			EquityAttributable to Sh	EquityAttributable to Sh	areh	olders of the Parent										Total equity
Share Capital Share`（`Thousands`）` Amount 914,487 9,144,872 - - - - - - - - - - - - 914,487 9,144,872 - - - - - - - - - - - - - - - - - - 914,487 $ 9,144,872	Capital Reserve 134,044 141 435 - - - - 134,620 - 4,005 - - - - - 44,892 2,074 $ 185,591		Retained Earning	Unappropriated Earnings `（`Unappropriated deficit`）` ( 248,943 ) - - ( 14,363 ) ( 412,009 ) 13,240 ( 398,769) ( 662,075 ) 372,967 - 5,239 - 269,155 ( 27,782) 241,373 - - ($ 42,496)				Oth	ers			a l a s s e t s a t ome Using equity method Associates 225,776 ) - - 20,479 - 120,876 120,876 84,421 ) - - 2,772 ) - - 37,454 37,454 - - $ 49,739)		TreasuryStock 432,403 ) - - - - - - 432,403 ) - - - - - - - 68,446 33,450 $ 330,507)
						Foreign Organization Financial Report Exchange difference 24,523 ) - - - - 7,112) 7,112) 31,635 ) - - - - - 13,975) 13,975) - - $ 45,610)	U	n r e a l i z e d g a i Fair value	n / l o s s o n f i n a n c i through comprehensive inc
		Legal Reserve 525,527 - - - - - - 525,527 - - - - - - - - - $ 525,527	Special Reserve 602,637 - - - - - - 602,637 ( 372,967 ) - - - - - - - - $ 229,670				Pa	rent company 121,782 - - - - 261,635 261,635 383,417 - - - - - 136,312) 136,312) - - $ 247,105		Using equity method Subsidiaries 327,584 ) - - 6,116 ) - 235,052 235,052 98,648 ) - - 2,467 ) - - 113,249) 113,249) - - $ 214,364)
Share`（`Thousands`）` 914,487 - - - - - - 914,487 - - - - - - - - - 914,487
			(	( ( ( ( ( ( (	( ( ( ( ( ( (		( (		( ( ( ( ( ( (		( ( ( (		( ( (		( ( ( (	10,000,535 141 12,000 - ( 414,333 ) 830,872 416,539 10,429,215 - 4,005 - ( 1,200 ) 275,768 ( 353,635) ( 77,867) 213,845 35,524 $ 10,603,522

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, 2020, 2021

Unit `：` Thousands of NTD

Code Cash Flows From Operating Activities 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 A21900 Transfer of treasury stock to employee compensation costs A22300 Share of income to associates using equity method A22500 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 Impairment loss (reversal of impairment loss) on inventory A23900 Unrealized profit on sales to associates A24100 Net gain on foreign exchange Changes in operating assets and liabilities A31115 Collect financial assets at fair value through profit or loss A31130 Accounts receivable 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 Current provisions A32240 Accrued pension liabilities, net A32230 Other current liability A33000 Cash generated from operations A33100 Interest income A33200 Dividend income		2021 $ 341,648 587,617 4,349 1,433 66,928 20,136 41,592 18,745 ) 3,107 ) 2,150 17,160 ) 6,209 ) 17,241 ) - 86,082 241 ) 72,253 ) 9,816 196,978 ) 762,290 ) 1,164,737 ) 208,867 ) 11,943 ) 47,227 ) 60,460 1,078,297 310,608 15,660 ) 8,466 ) 34,288 94,280 17,384 3,107		2020
	( ( ( ( ( ( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (	$ 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 ) 172,192 ) 17,354 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

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Code A33200 Dividend income from associates A33300 Interest payable A33500 Income tax receive (payable) AAAA Cash inflow from operating activities Cash Flows from Investing Activities B00010 Acquisition of financial assets at fair value through other comprehensive income B00020 Disposal of financial assets at fair value through other comprehensive income B01800 Acquisition of associates B01900 Disposal of associates B02200 Cash inflow from acquisition of subsidiary, net B05900 Decrease (increase) in loan to related parties receivable B02700 Acquisition of property, plant, equipment B02800 Disposal of property, plant, equipment B03800 Increase in refundable deposits B04500 Acquisition of intangible asset BBBB Cash outflow from investment activity Cash Flows From Financing Activities C00100 Increase (decrease) in short-term loan C00500 Proceeds from short-term bills payable C01600 Lend long-term loan C01700 Repay long-term loan C04020 Lease principal repayment C03000 Increase (decrease) in refundable deposits C03700 Increase (decrease) in loan to related parties receivable C05000 Disposal of treasury stock C05100 Treasury stock transferred to employee C05800 Changes to non-controlling interests CCCC Cash inflows (outflows) from financing activities DDDD Effect of exchange rate on cash or cash equivalents EEEE Net Decrease in Cash and Cash Equivalents E00100 Balance of cash and cash equivalents, beginning of the year E00200 Balance of cash and cash equivalents, end of the year		2021 $ 35,750 41,923 ) 5,200 113,798 164,326 ) 26,387 - - - 1,080 554,795 ) 6,641 118 ) 1,646) 686,777) 751,000 320,000 ) 1,825,000 2,030,000 ) 482 ) 509 28,000 213,845 33,374 1,200) 500,046 44,366 28,567 ) 1,359,763 $ 1,331,196		2020
	( ( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (	$ 41,872 57,308 ) 6,449) 695,096 49,361 ) 218,584 758,415 ) 15,083 392 404,500 ) 245,335 ) 1,052 1 ) 3,193) 1,225,694) 2,006,000 ) 500,000 875,000 295,000 ) 463 ) 298 ) 35,000 ) - - 12,000 949,761) 7,000 1,473,359 ) 2,833,122 $ 1,359,763

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 Corporation Limited and Subsidiaries Consolidated Financial Statement Note Jan 1 to Dec 31, 2020, 2021

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

1.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, 2021 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.

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

2.The Authorization of Financial Statements

The accompanying consolidated financial statements were approved and authorized

for issue by the Board of Directors on March 28, 2022.

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).

The application of the revised IFRSs approved and issued by the FSC will not result in a material change in the accounting policies of the consolidated company.

(b) IFRS endorsed by the Financial Supervisory Commission (FSC) in 2022

New, Revised or Amended Standards and Interpretations “IFRSs 2018-2020Annual Improvements ” Amendments to IFRS 3” Reference to the Conceptual Framework” Amendments to IAS 16” Property, Plant, and Equipment – Proceeds before Intended Use” Amendments to IAS 37 “Onerous Contracts – Cost of Fulfilling a Contract”	Effective Date Issued by IASB
	January 1, 2022`（`Note 1`）` January 1, 2022`（`Note 2`）` January 1, 2022`（`Note 3`）` January 1, 2022`（`Note 4`）`

Note 1 ： 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 2 ： As long as the acquisition date of company consolidation starts after January 1, 2022 during annual reporting, it is applicable to the amendment. 註
Note 3 ： 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.
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Note 4 ： After January 1, 2022, all contracts shall be applicable to the amendment if they have not fulfilled the obligations.

As of the date of approval of this consolidated financial report, the consolidated company assesses that the amendments to the above-mentioned standards and interpretations will not have a significant impact on its financial position and financial performance.

New, Revised or Amended Standards and
Interpretations
Amendments to IFRS 10 and IAS 28 “Sale or
Contribution of Assets between an Investor and its
Associate or Joint Venture”
IFRS 17 “Insurance Conctract”
Amendments to IFRS 17
Amendments to IFRS 17“Initial application
IFRS 17 and IFRS 9－Compare Information”
Amendments to IAS 1” Classification of Liabilities
as Current or Non-current”
Amendments to IAS 1 “Disclosure of Accounting
Policy”
Amendments to IAS 8” Definition of Accounting
Estimates”
Amendments toIAS 12“Deferred income tax
relation to assets and liabilities arising from a
single transaction” Effective Date Issued by
IASB(Note 1)

To be determined
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023（Note2）
January 1, 2023（Note3）
January 1, 2023（Note4）

New, Revised or Amended Standards and Interpretations Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets between an Investor and its Associate or Joint Venture” IFRS 17 “Insurance Conctract” Amendments to IFRS 17 Amendments to IFRS 17“Initial application IFRS 17 and IFRS 9`－`Compare Information” Amendments to IAS 1” Classification of Liabilities as Current or Non-current” Amendments to IAS 1 “Disclosure of Accounting Policy” Amendments to IAS 8” Definition of Accounting Estimates” Amendments toIAS 12“Deferred income tax relation to assets and liabilities arising from a single transaction”	Effective Date Issued by IASB(Note 1)
	To be determined January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023`（`Note2`）` January 1, 2023`（`Note3`）` January 1, 2023`（`Note4`）`

Note 1 ： Otherwise stated, the above New, Revised, Amended Standards and Interpretations shall be effective since the start date of annual reporting.

Note 2 ： Any postponement during annual reporting after January 1, 2023 shall be applicable to the amendment.

Note 3 ： 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.

Note 4 ： Except for the temporary difference in the recognized deferred income taxes due to lease and decomposition obligations on Jan 1st, 2022 any transaction happened after Jan 1st, 2022 shall be applicable to the amendment.

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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.

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
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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 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 12 and Table 7 and 8.

(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

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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.

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).

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(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 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 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

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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. 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.

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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.

(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

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cash-generating unit in the previous year (minus amortization or depreciation). A reversal of an impairment loss is recognized immediately in profit or loss.

(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.

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
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other income and loss. Please refer to Note TWENTY-SEVEN for the method of determining fair value.

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

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date of acquisition, and the risk of changes in value is very low, which is used to meet short-term cash commitments.

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 28 for the method of determining the fair value.

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(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.
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) Current provisions

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.

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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.

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.
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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 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, 2022, 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.

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

(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.

2. 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.

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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) Employee share option Employee share option g to employees

Employee share option shall be given based on the equity instrument measured at the fair value and the estimated vested optimal number of shares, which is recognized as expense by linear basis during the vested period and simultaneously adjusted capital surplus- treasury bonds transaction. If employees vested the stock right on the vested date, it shall be listed the entire amount as recognized expense on the vested date. The paying date of Li Peng enterprise transferring treasury stock to employees is the date when board resolution for employee purchase stock date.

(t) 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.

(u) Income Tax

Income tax expense is the sum of current income tax and deferred income tax. 1. 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.
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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.

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.

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.
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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.

6. 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, 2021 $ 2,832 398,316 298,944 631,104 $ 1,331,196	Dec 31, 2020
			$ 1,482 800,539 170,880 386,862 $ 1,359,763

As of December 31, 2021 and 2020, there were bank foreign currency time deposits of NT$132,492 and NT$113,920 thousand, respectively with a maturity period of more than 3 months, which were accounted for under other financial current assets.

As of December 31, 2021 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 10 and 30 ） .

Time deposits	Dec 31, 2021 $ 4,175	Dec 31, 2020 $ 2,000	Purpose
			Deposit for natural gas and application for a deposit for the development of state-owned land

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	Dec 31, 2021 $ 115,309 182,230 46,368 141,455 $ 485,362	Dec 31, 2020	Dec 31, 2020
			$ 101,160 119,125 173,591 98,098 $ 491,974

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Financial assets mandatorily measured at FVTPL– non-current Non-derivative financial assets `－`domestic unlisted (not OTC) common stocks `－`foreign unlisted (not OTC) common stocks	Dec 31, 2021 $ 9,472 430 $ 9,902	Dec 31, 2020
			$ 11,395 430 $ 11,825

In 2021 and 2020, 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 loss of NT$ 20,136 thousand and a net profit of NT$29,449 thousand, respectively.

8. Notes and Accounts Receivable

8. 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 31,2021 $ 89,806 ( 900) $ 88,906 Dec 31,2021 $ 2,568,351 ( 8,097) $ 2,560,254	Dec 31,2020
		$ 33,470 ( 300) $ 33,170 Dec 31,2020
	(	(	$ 1,790,100 7,266) $ 1,782,834

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.

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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) ：

Dec 31, 2021 Expected credit loss rate Total book value Allowance for impairment loss (lifetime expected credit loss`）` Cost after amortization Dec 31, 2020 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	Over 121days		Total
	(	0.5%`～`1% $ 2,352,054 8,031) $ 2,344,023 0`～`60days	(	0.5%`～`1% $ 185,714 586) $ 185,128 61`～`90days	(	0.5%`～`1% $ 103,320 326) $ 102,994 91`～`120days	0.5%`～`1% $ 17,069 ( 54) $ 17,015 Over 121days		(	$ 2,658,157 8,997) $ 2,649,160 Total
	(	0.5%`～`1% $ 1,387,672 5,796) $ 1,381,876	(	0.5%`～`1% $ 229,848 933) $ 228,915	(	0.5%`～`1% $ 177,779 722) $ 177,057	(	0.5%`～`1% $ 28,271 115) $ 28,156	(	$ 1,823,570 7,566) $ 1,816,004

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		2021 $ 7,566 1,433 2) $ 8,997	2020
	(		$ 11,073 ( 3,508 ) 1 $ 7,566

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9. Inventories

Inventories
Raw materials Materials Raw materials in transit Processed goods Finished goods Product inventory Inventory in transit	Dec 31,2021 $ 712,875 76,139 301,560 884,244 828,361 3 355,488 $ 3,158,670	Dec 31,2020
			$ 424,235 73,826 232,865 576,479 461,901 4,327 306,382 $ 2,080,015

The inventory-related cost of goods sold in 2021 and 2020 were NT$23,111,115 thousand and NT$13,324,652 thousand, respectively.

Operating costs for 2021 and 2020 included impairment loss on inventory NT$86,082 thousand and reversal of impairment loss on inventory NT$71,402 thousand, respectively.

The profit from the rebound in the net realizable value of inventories in 2020 was mainly due to the rebound in the prices of raw materials and finished products and the removal of inventories that were originally listed as depreciation losses.

10. Other financial assets - current

10.	Other financial assets-current	Other financial assets-current
11.	Dec 31,2021 Dec 31,2020 Pledged deposit receipt`（`Note 6 and 30`）` $ 4,175 $ 2,000 Receivable from sale of funds and stocks - 13,007 Other Receivables 78,050 45,624 Bank foreign currency time deposits with maturity more than 3 months`（`Note 6`）` 132,492 113,920 $ 214,717 $ 174,551 Financial assets measured at fair value through other comprehensive profits and losses Dec 31,2021 Dec 31,2020 Equity instrument investment measured at fair value through other comprehensive profits and losses - non-current Domestic listed stocks $ 2,147,276 $ 2,358,662		Dec 31,2020
	Equity instrument investment measured at fair value through other comprehensive profits and losses - non-current Domestic listed stocks	Dec 31,2021 $ 2,147,276
				$ 2,358,662

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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, 2021and 2020, there were investments of NT$369,589 thousand and NT$431,732 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, 2021 and 2020, the quota has not been used, please refer to Note 30.

12. Subsidiaries

The preparation of this consolidated financial report is as follows ：

Investor LiPeng Enterprise `〃` `〃` `〃` `〃` `〃` In Talent Eton Petrochemical Co., Ltd.	Subsidiaries In Talent Li Mao Co. Hung Hsing Co. Li Shing Co. Libolon Energy Co. Eton Petrochemical Co. Libolon (Shanghai) Co. Eton Petrochemical International Co., Ltd.	Business Type Reinvestments Reinvestments in productions, bonds, and banking `〃` `〃` Renewable energy self-use power generation equipment and cogeneration industry Chemical raw material wholesale Wholesale of rayon fabrics, fabrics, and sales of tangible goods Chemical raw material wholesale	% of Share hold	% of Share hold
			2021 Dec 31 100% 53.38% 53.02% 53% 70% 75% 100% 100%	2020 Dec 31
				100% 53.38% 53.02% 53% 70% 75% 100% 100%

13. Investments Using Equity Method Invested Associates

Investments Using Equity Method Invested Associates
Significant Associate PT. INDONESIA LIBOLON FIBER SYSTEM Insignificant Associate	Dec 31,2021 $ 711,944 1,914,240 $ 2,626,184	Dec 31,2020
			$ 752,312 1,860,989 $ 2,613,301

PT. INDONESIA LIBOLON FIBER SYSTEM

% of equityand votingrights held	% of equityand votingrights held
Dec 31,2021 30%	Dec 31,2020
	30%

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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 7.

The associates’ first-tier fair value information in the public market Companyname Dec 31,2021 Rich Development Co., Ltd. $485,620	is as follows`：` Dec 31,2020	is as follows`：` Dec 31,2020
		$536,737

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

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 Current net (loss) profit Other comprehensive income Total comprehensive income	Dec 31,2021 $ 564,213 2,246,555 ( 1,097,190 ) ( 78,091) $ 1,635,487 30% $ 490,646 221,298 $ 711,944 2021 $ 724,962 ( $ 68,548 ) ( 4,469) ($ 73,017 )	Dec 31,2020	Dec 31,2020
		$ 524,765 2,261,270 ( 1,046,810 ) ( 78,049) $ 1,661,176 30% $ 498,353 253,959 $ 752,312 2020
		(	$ 431,622 $ 35,566 10,401) $ 25,165

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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		2021 $ 46,904 52,240 $ 99,144		2020
				$ 14,039 159,494 $ 173,533

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.

14. Property, Plant and Equipment

Property, Plant and Equipment
Owned land Land improvement Building Machinery equipment Transportation Office equipment Other equipment Rental assets	Dec 31,2021 $ 1,847,871 9,128 1,565,477 1,585,395 18,365 4,424 287,478 176,244 $ 5,494,382	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

Ja A D A N D Ja Ja A D A N D A	n 1, 2020 balance dditions isposals ccount transfer et exchange difference ec 31, 2020 balance n 1, 2020 balance n 1, 2021 balance dditions isposals ccount transfer et exchange difference ec 31, 2021 balance ccumulated depreciation and impairment n 1, 2020 balance isposals ccount transfer mortization et exchange difference ec 31, 2020 balance n 1, 2021 balance isposals ccount transfer mortization et exchange difference ec 31, 2021 balance		Owned Land		Land Improvement		Building		Machinery Equipment		Transportation		Office Equipment	O	ther Equipment		Lease Assets	( (	Unfinished Construction		Total
			$ 1,746,786 - - - - $ 1,746,786 $ 1,746,786 - - 101,085 - $ 1,847,871 $ - - - - - $ - $ - - - - - $ -	( ( ( ( (	$ 11,166 - - - - $ 11,166 $ 11,166 282 - 2,050 - $ 13,498 $ 677 ) - - 1,798 ) - $ 2,475) $ 2,475 ) - - 1,895 ) - $ 4,370)	( ( ( ( ( ( ( ( ( (	$ 3,113,702 2,903 403 ) 12,246 1,055 $ 3,129,503 $ 3,129,503 1,520 1,448 ) 33,952 483) $ 3,163,044 $ 1,400,512 ) 403 467 ) 99,321 ) 559) $ 1,500,456) $ 1,500,456 ) 875 - 98,233 ) 247 $ 1,597,567)	( ( ( ( ( ( (	$ 10,292,188 8,566 35,851 ) 35,558 - $ 10,300,461 $ 10,300,461 58,476 150,390 ) 157,484 - $ 10,366,031 $ 8,132,923 ) 35,515 467 426,545 ) - $ 8,523,486) $ 8,523,486 ) 143,040 - 400,190 ) - $ 8,780,636)	( ( ( ( ( ( ( ( ( (	$ 108,465 2,279 125 ) - 63 $ 110,682 $ 110,682 2,767 2,303 ) - 29) $ 111,117 $ 74,685 ) 77 - 10,887 ) 51) $ 85,546) $ 85,546 ) 2,291 - 9,519 ) 22 $ 92,752)	( ( ( ( ( ( ( ( (	$ 44,241 137 5,543 ) 4,468 4 $ 43,307 $ 43,307 1,293 265 ) - 2) $ 44,333 $ 41,963 ) 5,543 - 1,944 ) 1) $ 38,365) $ 38,365 ) 266 - 1,812 ) 2 $ 39,909)	( ( ( ( ( ( (	$ 2,364,048 11,648 7,518 ) 33,121 - $ 2,401,299 $ 2,401,299 16,809 11,717 ) 6,269 - $ 2,412,660 $ 1,991,638 ) 7,518 - 76,943 ) - $ 2,061,063) $ 2,061,063 ) 11,519 - 75,638 ) - $ 2,125,182)	( ( ( ( (	$ 14,686 - - - - $ 14,686 $ 14,686 - - - - $ 14,686 $ 14,452 ) - - 234 ) - $ 14,686) $ 14,686 ) - - - - $ 14,686)		$ 3,112 100,747 - 85,393 ) - $ 18,466 $ 18,466 458,618 - 300,840 ) - $ 176,244 $ - - - - - $ - $ - - - - - $ -	( ( ( ( ( ( ( ( ( (	$ 17,698,394 126,280 49,440 ) - 1,122 $ 17,776,356 $ 17,776,356 539,766 166,123 ) - 515) $ 18,149,484 $ 11,656,850 ) 49,056 - 617,672 ) 611) $ 12,226,077) $ 12,226,077 ) 157,991 - 587,287 ) 271 $ 12,655,102)
Ja D A A N D Ja D A A N D

(a) The property, plant and equipment of the consolidated company are depreciated on a straight-line basis based on the following durability years ：
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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 17, 18, and 30) ：

30)`：`
Land and building Machinery and other equipment	Dec 31,2021 $ 2,976,190 - $ 2,976,190	Dec 31,2020
			$ 3,059,802 919,107 $ 3,978,909

Lease Agreement (a) Right of use assets

Right of use assets
Right of use assets carrying amount Land Additions to right of use assets Depreciation of right of use assets Land	Dec 31,2021 $ 977 2021 $ 375 $ 330	Dec 31,2020
			$ 934 2020
			$ 227 $ 192

Except for the recognition of depreciation expenses, the right of use asset of the consolidated company did not have significant sublease and impairment in 2021 and 2020.

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(b) Lease Liabilities

Lease Liabilities
Dec 31,2021 Lease liabilities carrying amount Current $ 177 Non-current $ 362 Lease liabilities’ discount rate range as follows`：` Dec 31,2021 Land 1.51461% Other information on lease 2021 Short-term lease expenses $ 31,782 Total of cash outflow from leasing $ 32,269	Dec 31,2020
	$ 107 $ 541 Dec 31,2020
		1.51461% 2020
		$ 34,350 $ 34,881

(c) Other information on lease

16. Other Intangible Assets

Other Intangible Assets
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

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Cost Jan 1, 2021 balance Purchased this period Reduction this period Dec 31, 2021 balance Accumulated amortization and impairment Jan 1, 2021 balance Amortized this period Reduction this period Dec 31, 2021 balance Dec 31, 2021 net	Software costs $ 20,497 1,598 ( 7,675) $ 14,420 ( $ 12,697 ) ( 4,079 ) 7,675 ($ 9,101) $ 5,319	Other intangible assets $ 5,216 48 ( 3,675 ) $ 1,589 ( $ 4,961 ) ( 270 ) 3,675 ($ 1,556) $ 33		Total
			$ 25,713 1,646 ( 11,350 ) $ 16,009 ( $ 17,658 ) ( 4,349 ) 11,350 ($ 10,657) $ 5,352

Except for the recognition of amortization expenses, the other intangible assets of the consolidated company did not have significant additions, disposals and impairment in 2021 and 2020.

Amortization expenses are accrued on a straight-line basis based on the following durability years ：

s`：`
Software costs	3years
Other intangible assets	3years

17. Borrowing

(a) Short-term loan

Short-term loan
Unsecured loans Credit loan Secured loans Bank loan	Dec 31,2021 $ 2,380,000 415,000 $ 2,795,000	Dec 31,2020
			$ 1,924,000 120,000 $ 2,044,000

The interest rates of bank revolving loans were 0.80% ～ 0.85% and 0.5214% ～ 0.91% as of December 31, 2021 and 2020, respectively.
The secured loan was secured by property, plant, equipment as of December 31, 2021 and 2020 (please refer to Note 14 and 30).
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(b) Shot-term Note Receivable— Commercial Promissory Receivable

Dec 31,	2021	2021
Interests 0.39%~0.68% Dec 31,		Amount
	$ 800,000 2020
Interests 0.31%~0.67%		Amount
		$ 1,120,000

18.	Long-Term Loan 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 maturity.`（`Note1`）` 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 maturity.`（`Note1`）` Bank of Taiwan Land mortgage loan on Chang Hwa nylon plant 03.30.2021`～`03.30.2028. Interests to be paid monthly, the total loan amount is NT$1billion, loan repayment cycle is 6 months starting from 09.30.2023, the	Interests 1.1364% 1.2104% 1.1575%	Dec 31,2021 $ - - 1,000,000	Dec 31,2020
				$ 560,000 395,000 -

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principal NT$55,000 thousand is to be repaid in each of the first 6 cycles, the remaining principal is to be settled by maturity. 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 from 03.29.2019 till maturity.`（`Note3`）` 1.4000% 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.(Note 3) 1.18978% Chang Hwa Bank Interests paid monthly to Bank for Taipei branch’s credit loan 04.14.2021`～`04.14.2024, total loan amount is NT$125million, principal is divided into 8 repayments and shall be repaid every 3 months, cycle starts from 07.14.2022 till maturity. 1.4% Chang Hwa Bank Interests paid monthly to Bank for Taipei branch’s building mortgage loan 12.30.2020 `～`12.30.2024, total loan amount is NT$375 million with principal repayment by maturity. 1.19056% KGI Bank 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.(Note 2) 1.18656% KGI Bank Interests paid monthly to Bank for Taipei branch’s long-term credit loan 12.15.2020`～`03.29.2023, total loan amount is NT$500 million with principal repayment by maturity. 1.19078% Export-Import Bank Interests paid monthly to Bank for Taipei branch’s long-term credit loan 08.05.2020`～`08.05.2023, total loan amount is NT$150 million with principal repayment by maturity. 0.8306% Less`：`Partially transferred to current liabilities due within one year (	- $ - 125,000 375,000 - 175,000 150,000 1,825,000 31,250) ( $ 1,793,750	200,000 $ 375,000 - - 500,000 - - 2,030,000 155,000) $ 1,875,000

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Note1 ： 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 company paid in advance in February 2021.
Note2 ： The maturity date of the original loan was October 29, 2022. The company paid in advance in April 2021.
Note3 ： The maturity date of the original loan was December 29, 2022, December 30, 2023 and March 29, 2024. The company paid in advance in April 2021 and May 2021.

The long-term loans on December 31, 2021 and 2020 were collateral for Property, Plant and Equipment, please refer to Note 14 and 30.

19. 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 ：

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Present value of defined benefit obligation Fair value of plan assets Net defined benefit liability	Dec 31,2021 $ 378,470 (121,868) $ 256,602	Dec 31,2020	Dec 31,2020
	(	(	$ 352,539 116,734) $ 235,805

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

Jan 1, 2020 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 financial assumptions Actuarial loss`（`gain`）` `－`from experience adjustment Recognized in other comprehensive income Paid by employer Benefit costs Dec 31, 2020 Jan 1, 2021 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	Present value of defined benefit obligation $ 366,112 3,095 2,746 5,841 $ - 10,183 ( 16,044) ( 5,861) - ( 13,553) $ 352,539 $ 352,539 2,639 1,763 4,402 - 9,697	Fair value of plan assets ($ 103,413) - ( 863) ( 863) ( $ 3,102 ) - - ( 3,102) ( 22,909 ) 13,553 ($ 116,734) ($ 116,734) - ( 626) ( 626) ( 1,364 ) -	Net defined benefit liability (asset)
	( ( (		$ 262,699 3,095 1,883 4,978 ( $ 3,102 ) 10,183 ( 16,044) ( 8,963) ( 22,909 ) - $ 235,805 $ 235,805 2,639 1,137 3,776 ( 1,364 ) 9,697

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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, 2021	Present value of defined benefit obligation ( 5,205 ) 26,135 30,627 - ( 9,098) $ 378,470	Fair value of plan assets - - ( 1,364) ( 12,242 ) 9,098 ($ 121,868)	Net defined benefit liability (asset)
			( 5,205 ) 26,135 29,263 ( 12,242 ) - $ 256,602

Movements in the fair value of the plan assets were as follows ：

Categorized by functions Operating cost Management expense R&D expense		2021 $ 3,111 467 198 $ 3,776		2020
				$ 4,055 638 285 $ 4,978

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 domestic (foreign) equity and debt securities, bank deposits, etc. The investment is carried out by the Labor Fund Utilization Bureau of the Ministry of Labor by its own use and entrusted management. However, the distribution amount of the planned assets of Lipeng Company shall not be less than the average interest rate on a two-year time deposit published by the local banks.
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.

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 ：

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Discount rate Future salary increase rate	Dec 31,2021 0.625% 2.25%	Dec 31,2020
		0.50% 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 31,2021 ($ 10,321) $ 10,733 $ 10,386 ($ 10,042)	Dec 31,2020	Dec 31,2020
	( (	( (	$ 10,183) $ 10,607 $ 10,250 $ 9,895)

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.

Expected withdrawn within 1 year Defined benefit obligation average maturity	Dec 31,2021 $ 11,352 11years	Dec 31,2020	Dec 31,2020
			$ 16,920 11.6years

20.	Equity (a) Shares Common share Authorized shares`（`in thousands`）` Authorized capital Issued and paid shares`（`in thousands`）` Issued capital		Dec 31,2021 1,200,000 $ 12,000,000 914,487 $ 9,144,872		Dec 31,2020
	(a)
					1,200,000 $ 12,000,000 914,487 $ 9,144,872

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

Capital reserve
Using equity method to recognize the capital reserve of associates Recognition of changes in ownership and equity of subsidiaries`（`Note 26`）` Treasury stock trading	Dec 31,2021 $ 64,072 435 121,084 $ 185,591	Dec 31,2020
			$ 60,067 435 74,118 $ 134,620

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 22 (7) Employee Compensation and Board of Directors' Compensation for the compensation policy stipulated in the policy articles of the consolidated company.
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The appropriations of the 2020’s and 2019’s loss compensation cases have been approved by the consolidated company’s Board of Directors in its meetings held on August 18, 2021 and June 18, 2020, respectively.

The information about the consolidated company’s distribution of surplus to

shareholders is available at the Market Observation Post System website.

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 Share attributable to uncontrollable equity Net profit (loss) in this period Exchange differences on translation of foreign financial statements Unrealized gains and losses of financial assets measured at fair value through other comprehensive income Disposal of the parent company’s stock by a subsidiary is regarded as a treasury stock transaction Cash dividends of the company received by subsidiaries The non-controlling interests changes of the subsidiary's cash capital increase not recognized according to the shareholding ratio Non-controlling interests increased by increased cash capital of subsidiaries Obtain increased non-controlling interests from subsidiaries Balance, end of year	2021 $ 947,324 6,613 ( 7 ) ( 99,764 ) 100,507 ( 1,200 ) $ - - - $ 953,473	2020
		$ 730,902 ( 2,324 ) - 207,181 - - ( $ 435 ) 9,000 3,000 $ 947,324

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(e) Treasury stock

The changes in shares held by the consolidated company and its subsidiaries in

2021 and 2020 are as follows ：

			2021
Reason for withdrawal Parent company’s shares held by subsidiary Shares transferred to employees	Shares, beginning ofyear		Increase - - - 2020	Decrease 15,919,000 3,584,000 19,503,000	Shares, end of year
		82,948,106 8,000,000 90,948,106			67,029,106 4,416,000 71,445,106
Reason for withdrawal Parent company’s shares held by subsidiary Shares transferred to employees	Shares, beginning ofyear		Increase - - -	Decrease - - -	Shares, end of year
		82,948,106 8,000,000 90,948,106			82,948,106 8,000,000 90,948,106

The purpose of holding Li Peng Enterprise’s shares by subsidiaries is to protect shareholders’ rights and interests, relevant information is as follows ：

Subsidiary Dec 31, 2021 Li Mao Investment Co. HungHsing Investment Co. Li Shing Investment Co. Dec 31, 2020 Li Mao Investment Co. HungHsing Investment Co. Li Shing Investment Co.	Shares held 34,177,995 24,618,087 8,233,024 34,177,995 24,618,087 24,152,024	Amount transferred to treasurystock	Amount transferred to treasurystock
			$ 148,007 105,886 35,399 $ 289,292 $ 148,007 105,886 103,845 $ 357,738

On December 31, 2021, the consolidated company listed the amount of treasury stocks of NT$330,507 thousand, including the amount of NT$41,215 thousand that the consolidated company bought back treasury shares of and the amount of NT$289,292 thousand transferred to the treasury stocks of the consolidated company held by its subsidiaries. The listed amounts have been
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adjusted according to the consolidated company’s shareholding ratio in subsidiaries. The market price of the consolidated company’s shares as of December 31, 2021 was NT$10.3 per share.

In 2021, the subsidiary Li Shing Co. sold 15,919 thousand shares of Li Peng Enterprise's stock at a disposal price of NTD$ 213,845 thousand.
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.

21. Income

Income
Commodity sales revenue Processing revenue Other		2021 $ 23,743,752 490,311 18,373 $ 24,252,436		2020
				$ 13,097,359 458,368 3,734 $ 13,559,461

22. Continuing operation unit net profit

(a) Interest income

Interest income
Interest income Bank deposits Interests from related parties		2021 $ 11,971 6,774 $ 18,745		2020
				$ 39,443 5,864 $ 45,307

(b) Other income

Other income
Lease income Lease income of operations Dividend income Other`（`Note 32`）`		2021 $ 16,827 3,107 31,857 $ 51,791		2020
				$ 15,943 1,738 107,180 $ 124,861

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(c) 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 (d) Financial cost Interests of lease liability Interest of bank loan Interest of loan from related parties Financial expenses	2021 $ 6,209 ( 60,345 ) - ( 20,136 ) 17,241 ( 1,822) ($ 58,853) 2021 $ 8 39,286 763 1,535 $ 41,592	2020
		$ 668 ( 334,892 ) 51 29,449 341 ( 2,583) ($ 306,966) 2020
			$ 10 52,788 663 3,036 $ 56,497

Information about interest capitalization is as follows ：

Interest capitalization amount Interest capitalization rate (e) Depreciation and amortization Property, plant and equipment Right of use assets Intangible assets Down payment Total Categorized depreciation expenses by function Operating cost Operating expenses	2021 $ 3,385 1.1427%-1.21107% 2021 $ 587,287 330 4,349 66,928 $ 658,894 $ 573,265 14,352 $ 587,617	2020	2020
		$ 1,415 1.19898%-1.51968% 2020
			$ 617,672 192 6,472 71,701 $ 696,037 $ 603,430 14,434 $ 617,864

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Categorized amortization expenses by function Operating cost Operating expenses		2021 $ 69,483 1,794 $ 71,277		2020
				$ 75,687 2,486 $ 78,173

(f) Expenses for employee benefits

Short-term employee benefits Retirement benefits Definedcontribution plan Defined benefit plan `（`Note 19`）` Compensation to directors Other employee benefit Total expenses of employee benefit				2021		Total $ 863,469 23,146 3,776 26,922 6,104 82,979 $ 979,474				2020
		Operating cost $ 697,269 17,957 3,111 21,068 - 72,230 $ 790,567		Operating expenses $ 166,200 5,189 665 5,854 6,104 10,749 $ 188,907				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		Total
												$ 736,095 22,760 4,978 27,738 3,484 66,898 $ 834,215

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

The employee compensation and director compensation estimated in 2021 were resolved by the board of directors on March 28, 2022 as follows ：

Estimation Ratio Compensation to employees Compensation to directors	2021 2% 2%

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Amount

Amount
Compensation to employees Compensation to directors	2021 Cash Stock $ 749 $ - 749 -	2020
	Cash	Cash $ - -	Stock
	$ 749 749		$ - -

If there is still a change in the amount after the annual consolidated financial report is issued, it will be treated according to the change in accounting estimates and adjusted and recorded in the following year.

For information on employees’ compensation and directors’ compensation of the consolidated company’s 2022 and 2021 board resolutions, please refer to the "Public Information Observatory" of the Taiwan Stock Exchange website.

23. Continuing operating business unit’s income tax

(a) The main components of income tax expense (profit) 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 expense (profit) recognized in profit and loss		2021 $ 9,763 310 986 11,059 54,820 1 54,821 $ 65,880		2020
			$ 2,344 1,069 822 4,235 ( 122,442 ) ( 319) (122,761) ($ 118,526)

The adjustment of accounting income and current income tax expense (profit) is as follows ：

is as follows`：`
Income tax expense (profit) at the statutory tax rate for net profit (loss) before tax Tax effect of adjusting items Investment (profit) loss recognized by the equity method Financial asset evaluation benefits	2021 $ 78,588 ( 8,716 ) 4,041	2020
		( $ 101,630 ) ( 5,534 ) ( 594 )

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(b) (c)	2021 Gain on disposal of investment ( 8,525 ) Tax-exempt dividend income ( 621 ) Investment (profit) loss recognized by the equity method - Financial asset evaluation benefits 86 Tax-exempt subsidy income - Other ( 1,048 ) The income basic tax 778 Adjustment on income tax expenses in prior year 987 Income tax on unappropriated earnings 310 Income tax expense (profit) recognized in profit and loss $ 65,880 Current tax liabilities Dec 31,2021 Current tax liabilities Income tax payable $ 9,953 Less`：`Withholding tax in current period ( 2,099) $ 7,854 Deferred income tax assets and liabilities Dec 31,2021 Deferred income tax assets Temporary difference Allowance for loss of inventory depreciation $ 45,753 Unallocated inventory cost for manufacturing 13,795 Unrealized exchange loss - Unrealized loss of financial liabilities measured at FVTPL 5,042 Pension tax difference 6,934 Defined actuarial profit and loss of retirement plan 17,892 `（`continue in next page`）`	2020
		( 2,383 ) ( 348 ) 8,685 73 ( 16,434 ) ( 1,933 ) - 503 1,069 ($ 118,526) Dec 31,2020
		$ 3,379 ( 576) $ 2,803 Dec 31,2020
		$ 28,536 10,289 16,482 - 8,626 17,892

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Sales discount preparation Loss deduction Bonus for no-leave Unrealized gross loss Other Deferred income tax liability Unrealized exchange benefits Land appreciation tax preparation		Dec 31,2021 1,035 215,738 4,597 14 541 $ 311,341 Dec 31, 2021 $ 204 146,650 $ 146,854		Dec 31,2020
				4,074 275,736 3,689 93 541 $ 365,958 Dec 31, 2020 $ - 146,650 $ 146,650

(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 2030 Due in 2031	Dec 31,2021 $ 3,137 9,780 $ 12,917	Dec 31,2020
			$ 3,137 - $ 3,137

(e) Unlisted loss deduction information

As of Dec 31, 2021, the loss deduction information is as follows ：

	Balance yet deducted $ 353,495 725,660 9,780 $ 1,088,935	Year due
		2029 2030 2031

(f) Li Peng Enterprise, Li Shing Co., Hung Hsing Co. and Li Mao Investment Co.’s income tax declarations for commercial businesses, as well as the income tax declaration for businesses, from the past until (including) year 2019, have been approved by the inspection authority.

24. Profit (Loss) per share

The consolidated company’s profit (loss) per share in 2021 and 2020 is as calculated as follows ：

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2021 Basic earning per share The net profit attributable to ordinary shareholders for the period Assumed conversion of all dilutive potential ordinary shares Employees compensation Profit attributable to ordinary shareholders of the parent plus assumed conversion of all dilutive potential ordinary shares 2020 Basic loss per share The net loss attributable to ordinary shareholders for the period	Amount`（`numerator`）`	Amount`（`numerator`）`	Amount`（`numerator`）`	Amount`（`numerator`）`	Amount`（`numerator`）`	Amount`（`numerator`）`	Share `（`denominator `）` `（`thousand share`）`	Share `（`denominator `）` `（`thousand share`）`	Profit(Loss) per share`（`NTD`）`	Profit(Loss) per share`（`NTD`）`	Profit(Loss) per share`（`NTD`）`	Profit(Loss) per share`（`NTD`）`	Profit(Loss) per share`（`NTD`）`	Profit(Loss) per 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`）`
		$ 341,648 - $ 341,648 ($ 532,859)		$ 275,768 - $ 275,768 ($ 414,333)		$ 269,155 - $ 269,155 ($ 412,009)		870,194 73 870,267 862,390	(	$ 0.39 $ 0.39 $ 0.62)	(	$ 0.32 $ 0.32 $ 0.48)	(	$ 0.31 $ 0.31 $ 0.48)

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.

25. Business consolidation

(a) Acquisition of subsidiary

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

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(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 Obtaining the net cash inflow from the subsidiary Cash payment consideration Less`：`acquired cash and cash equivalent balance	Libolon Energy Co. Ltd.
	$ 942 1 ( 60) $ 883 Jan. 1 to June 30, 2020
	( (	$ 550 942) $ 392)

(c) Obtaining the net cash inflow from the subsidiary
(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)

26. 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.

27. 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

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28. 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.
(b) Fair value information － Financial instruments measured at fair value on a repeatability basis

Dec 31, 2021

Dec 31, 2021
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, 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	Grade 1 $ 115,309 182,230 - - - - $ 297,539 $ 2,147,276 Grade 1 $ 101,160 119,125 - - - - $ 220,285 $ 2,358,662	Grade 2 $ - - - - 141,455 46,368 $ 187,823 $ - Grade 2 $ - - - - 98,098 173,591 $ 271,689 $ -	Grade 3 $ - - 9,472 430 - - $ 9,902 $ - Grade 3 $ - - 11,395 430 - - $ 11,825 $ -	Total
				$ 115,309 182,230 9,472 430 141,455 46,368 $ 495,264 $ 2,147,276 Total
				$ 101,160 119,125 11,395 430 98,098 173,591 $ 503,799 $ 2,358,662

No transfer of the fair value measurement between level 1 and level 2 in year 2021 and 2020.

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(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 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 counterparties.

(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 Financial liabilities measured by amortized cost (Note 2)	Dec 31,2021 $ 495,264 5,122,903 2,147,276 8,346,933	Dec 31,2020
		$ 503,799 4,127,426 2,358,662 6,717,233

Note1 ： The balance includes cash and cash equivalents, notes and accounts receivable and other financial assets measured at amortized cost.
Note2 ： 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.
(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
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services for various business units, coordinates access to domestic and international financial markets, and supervises and manages the financial risks related to the 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.

1. 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.

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Dec 31, 2021 Dec 31, 2020
0.5% difference in the exchange rate of USD profit and loss $ 9,386 $ 8,237
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, 2021 and 2020, the unutilized short-term bank financing lines of the consolidated company were NT$12,164,533 thousand and NT$12,640,721 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, 2021

Dec 31, 2021
Non-derived financial liabilities Short-term loan Short-term bills payable Notes payable`（`including related parties`）` Accounts payable`（`including related parties`）` Other payable	In 1year $ 2,795,000 800,000 123,930 2,136,787 553,216	1 to 2years $ - - - - -	Over 2years
			$ - - - - -

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Non-derived financial liabilities Loan payable to related parties Lease liabilities`（`current and non-current`）` Current provisions Long-term loan`（`including 1 year or due within the operating cycle`）` Guarantee deposits received Dec 31, 2020 Non-derived financial liabilities Short-term loan Short-term bills payable Notes payable`（`including related parties`）` Accounts payable`（`including related parties`）` Other payable Loan payable to related parties Lease liabilities`（`current and non-current`）` Current provisions Long-term loan`（`including 1 year or due within the operating cycle`）` Guarantee deposits received		In 1year 113,000 183 5,174 31,250 1,686 $ 6,560,226 In 1year $ 2,044,000 1,120,000 63,470 1,058,224 316,539 85,000 115 20,372 155,000 1,176 $ 4,863,896		1to2years - 183 - 487,500 - $ 487,683 1 to 2years $ - - - - - - 183 - 1,500,000 - $ 1,500,183	Over 2years	Over 2years
					- 183 - 1,306,250 - $ 1,306,433 Over 2years
						$ - - - - - - 366 - 375,000 - $ 375,366

29. 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 ：

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(a) Related parties and association

Association with the Company

Related parties

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 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 LIBOLON ENERGY CO. LTD. Associated company originally, subsidiary since July 2020 APEX FONG YI TECHNOLOGY CO. Other

APEX FONG YI TECHNOLOGY CO. LTD.

Other related parties originally, associated company since May 2020 Other

PT. INDONESIA LIBOLON FIBER SYSTEM
LIBOLON INTERNATIONAL CORP.
(b) Operating income

Operating income
Accountingitem Sales revenue	Type of associate`／`name Investors with significant influence Associated company Other		2021 $ 609,434 617,567 23,952 $ 1,250,953		2020
					$ 574,043 340,174 23,496 $ 937,713

There is no significant difference between the consolidated company’s sales to associated companies and general transactions with other related parties.

(c) Purchases

Purchases
Type of associate Investors with significant influence Associated company Other		2021 $ 758,243 20,295 - $ 778,538		2020
				$ 554,397 15,223 29,417 $ 599,037

(d) Amounts receivable from related parties (excluding loans to related parties)
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Accountingitem Note receivable Accounts receivable	Type of associate`／`name Investors with significant influence Lealea Associated company Li Ling Other Investors with significant influence Associated company Other	Dec 31,2021 $ 58,645 134,181 80 192,906 74,477 84,884 - 159,361	Dec 31,2020	Dec 31,2020
				$ - 52,264 - 52,264 89,732 70,418 1,609 161,759

Other receivables Investors with significant influence Lealea Associated company Other	Dec 31,2021 19,743 2,942 1 22,686 $ 374,953	Dec 31,2020	Dec 31,2020
			7,232 1,886 - 9,118 $ 223,141

No guarantee is received for the accounts receivable from related parties. No allowance for losses is provided for accounts receivable from related parties in 2021 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)

Accountingitem Notes payable Accounts payable Payable for purchase of equipment	Type of associate`／`name Investors with significant influence Lealea Associated company Investors with significant influence Lealea Associated company Investors with significant influence Associated company	Dec 31,2021 $ 81,054 4,506 85,560 111,313 7,515 118,828 - 5,213 5,213 $ 209,601	Dec 31,2020	Dec 31,2020
				$ 6,579 2,126 8,705 94,729 2,406 97,135 315 - 315 $ 106,155

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

(f) Disposal of property, plant and equipment

Type of associate`／`name Investors with significant influence Associated company		Disposalprice 2021 2020 $ 12,321 $ - - 3 $ 12,321 $ 3	Disposalprice 2021 2020 $ 12,321 $ - - 3 $ 12,321 $ 3		Disposalprofit`（`loss`）`	Disposalprofit`（`loss`）`	Disposalprofit`（`loss`）`
		2021			2021 $ 5,703 - $ 5,703		2020
		$ 12,321 - $ 12,321					$ - 3 $ 3

(g) Acquisition of property, plant and equipment

(h)	Type of associate`／`name Investors with significant influence Associated company Rich Development Other Equity transaction 2020		Acquisitionprice	Acquisitionprice	Acquisitionprice
			2021 $ - 133,047 10,048 $ 143,095		2020
					$ 439 - 4,629 $ 5,068

2020
Type of associate`／`name Investors with significant influence	Accountingitem Investment using equity method	Shares traded 55,000 shares	Trade to Libolon Energy Co. Ltd		Acquisition price
					$ 550

(i) Acquisition of other assets

Type of associate Associated company	Accounting item Other intangible assets`－` computer software		Acquisition	Acquisition	price
			2021 $ 1,458		2020
					$ 2,866

67 -

(j) Loan to related parties

		Dec 31,2021
Highest balance $ 256,000 768,075 50,000	Balance, end ofyear $ 233,000 332,160 - $ 565,160	Interest range`（％）` 0.80514~0.86228 1.40630~3.19860 1.39022~1.5225 Dec 31,2020	Interest income	Interest receivable
			$ 1,844 4,812 118 $ 6,774	$ 162 402 - $ 564
Highest balance $ 238,000 728,818 50,000	Balance, end ofyear $ 218,000 284,800 50,000 $ 552,800	Interest range`（％）` 0.82040~0.91554 1.43044~3.19860 1.42565~1.47000	Interest income	Interest receivable
			$ 1,295 4,538 31 $ 5,864	$ 161 356 25 $ 542

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

(k) Loan from related parties

Associated company Li Hao Co. Li Zan Co.			Dec 31,2021
	Highest balance $ 71,000 42,000	Balance, end of year $ 71,000 42,000 $ 113,000	Interest range`（％）` 0.76719~0.81914 0.76719~0.81914		Interest expense $ 491 272 $ 763		Interest payable
							$ 49 29 $ 78

68 -

(l)


Balance, end of year		Interest payable
	$ 28,261 2020
	$ 22,549 2020
	$ - 2020
	$ 6,694 4,106 1,080 10 $ 11,890

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.

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.

69 -

Other income Investors with significant influence Lealea Associated company Li Ling Other Other Lease expense Investors with significant influence Lealea Associated company Rich Development		2021 $ 31,046 4,179 482 - $ 35,707 2021 $ 25,490 5,333 $ 30,823		2020
				$ 18,989 2,950 741 56 $ 22,736 2020
				$ 28,217 5,011 $ 33,228

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.

Tech service fees Associated company Lealea Technology Ohter expense`－`steam Investors with significant influence Lealea Environmental maintenance expense Investors with significant influence Services expense`－`coal disposal Associated company Lea Jie Energy Fuel expense`－`coal Associated company Lea Jie Energy		2021 $ 24,511 2021 $ 96,159 2021 $ 610 2021 $ 914 2021 $ 163,795		2020
				$ 24,610 2020
				$ 92,425 2020
				$ 2,065 2020
				$ 914 2020
				$ 104,570

70 -

(m) Salary of senior management

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

Short-term employee benefits Retirement benefits		2021 $ 20,490 296 $ 20,786		2020
				$ 19,829 296 $ 20,125

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

Type of associate Associated company Lealea Technology Type of associate Associated company Lealea Technology	Item Software and Hardware Item Software	Price of contracted but unfinished `（`untaxed`）` Dec 31,2021 $ 14,840 Price of contracted but unfinished `（`untaxed`）` Dec 31,2020 $ 440	Prepaid equipment balance	Prepaid equipment balance
			Dec 31,2021
			$ 564 Prepaid equipment balance
			Dec 31,2020
				$ -

30. Pledged assets

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

financial institutions.

financial institutions.
Pledged deposit receipt`（`Note 6 and 10`）` Financial assets at FVTOCI`－` non-current`（`Note 11`）` Property, plant and equipment `（`Note 14`）`	Dec 31,2021 $ 4,175 369,589 2,976,190 $ 3,349,954	Dec 31,2020
			$ 2,000 431,732 3,978,909 $ 4,412,641

71 -

31. 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 ：

On December 31, 2021 and 2020, the consolidated company still has issued and unused

letters of credit. The details are as follows ：

USD JPY NTD EUR	Unit`：`foreign currency in thousands Dec 31,2021 Dec 31,2020 $ 98,714 $ 66,080 253,862 503,930 371,293 290,367 1,170 -	Unit`：`foreign currency in thousands Dec 31,2021 Dec 31,2020 $ 98,714 $ 66,080 253,862 503,930 371,293 290,367 1,170 -
		$ 66,080 503,930 290,367 -

32. Other matters

The consolidated company was affected by the global pandemic of the Covid -19, as business orders dropped in 2020, 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 2021. 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.
(c) Government relief grants

The consolidated company has applied to the following government relief grants in 2021 ：

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.

72 -

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

Unit ： Foreign currency ／ NTD in thousand

Company Li Peng Enterprise `〃` Libolon Shanghai Co. Eton Petrochemical Co. In talent	Financial assets Currency items USD RMB USD USD USD		Dec 31,2021
		Foreign currency $ 125,777,205 21,025,085 4,331,358 53,958,346 1,230	Exchange rate 27.68 `（`USD`：`NTD`）` 4.344 `（`RMB`：`NTD`）` 6.3720 `（`USD`：`RMB`）` 27.68 `（`USD`：`NTD`）` 27.68 `（`USD`：`NTD`）`	Carryingamount
				$ 3,481,513 91,333 119,892 1,493,567 34

Company	Financial assets `－`non-current		Dec 31,2021
		Foreign currency 96,149 252,923,385,742 69,356,315 93,011	Exchange rate 27.68 `（`USD`：`NTD`）` 0.0019399 `（`IDR`：`NTD`）` 4.344 `（`RMB`：`NTD`）` 27.68 `（`USD`：`NTD`）`	Carryingamount
				2,661 490,646 301,284 2,575
`〃` In talent Eton Petrochem ical Co.
	USD Investment using equity method IDR Investment using equity method RMB Investment using equity method USD

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Company Li Peng Enterprise `〃` Libolon Shanghai Co. Eton Petrochemical Co.	Financial liability Currency items USD RMB USD USD		Dec 31,2021
		Foreign currency 58,441,306 169,879 3,160,027 54,645,669	Exchange rate 27.68 `（`USD`：`NTD`）` 4.344 `（`RMB`：`NTD`）` 6.3720 `（`USD`：`RMB`）` 27.68 `（`USD`：`NTD`）`	Carryingamount
				1,617,655 738 87,470 1,512,592

Company Li Peng Enterprise `〃` Libolon Shanghai Co. Eton Petrochemical Co. Li Peng Enterprise `〃` Eton Petrochem ical Co.	Financial assets Currency items USD RMB USD USD Non currency items Financial assets measured at FVTPL `－`non-current USD Investment using equity method RMB IDR Investment using equity method USD		Dec 31,2020
		Foreign currency $ 97,994,497 20,585,960 28,050,660 14,579,614 96,149 68,265,018 246,819,202,615 800	Exchange rate 28.48 `（`USD`：`NTD`）` 4.377 `（`RMB`：`NTD`）` 6.5067 `（`USD`：`RMB`）` 28.48 `（`USD`：`NTD`）` 28.48 `（`USD`：`NTD`）` 4.377 `（`RMB`：`NTD`）` 0.0020191 `（`IDR`：`NTD`）` 28.48 `（`USD`：`NTD`）`	Carryingamount
				$ 2,790,883 90,105 798,878 415,227 2,738 298,796 498,353 23

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Company Li Peng Enterprise `〃` Libolon Shanghai Co. Eton Petrochemical Co.	Financial liability Currency items USD RMB USD USD		Dec 31,2020
		Foreign currency 37,773,605 355,788 28,143,338 16,860,220	Exchange rate 28.48 `（`USD`：`NTD`）` 4.377 `（`RMB`：`NTD`）` 6.5067 `（`USD`：`RMB`）` 28.48 `（`USD`：`NTD`）`	Carryingamount
				1,075,792 1,557 801,517 480,179

The consolidated company’s unrealized foreign currency exchange profit and loss in 2021 and 2020 were NT$971 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.

34. Disclosed items in notes

(a) Major transaction items and (b) reinvestment business related information ：
Loan to others. (Attached table 1 ）
Provision of endorsements and guarantees to others. （ Attached table 2 ）
Holding marketable securities at the end of the period (excluding investment in subsidiaries, associates and joint venture equity). (Attached table 3 ）
The cumulative amount of buying or selling the same securities reaches NT$300 million or more than 20% of the paid-in capital. （ NA ）
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. （ NA ）
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 ）
75 -

(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)

35. 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:

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

76 -

(a) Departmental income and operational results

Operating income (including allocation income) Operating cost`（`including transfer cost`）` Operating margin`（`loss`）` Operating expense Operating profit`（`loss`）` Non-operating income and expenses Net profit before tax								2021
		Nylon department		Weaving department		Trade department		Yarn dyeing and other departments		Total	Adjustment and write-off		Total
		$ 9,883,528 ( 9,151,940) 731,588 ( 406,342) $ 325,246		$ 3,047,773 ( 2,728,840) 318,933 ( 304,428) $ 14,505		$ 13,984,028 (13,882,951) 101,077 ( 62,901) $ 38,176	$ 170,161 ( 173,600) ( 3,439 ) ( 20,184) ($ 23,623)			$ 27,085,490 (25,937,331) 1,148,159 ( 793,855) $ 354,304	( $ 2,833,054 ) 2,826,457 ( 6,597 ) 6,690 $ 93		$ 24,252,436 (23,110,874) 1,141,562 ( 787,165) 354,397 ( 12,749) $ 341,648

Operating income (including allocation income) Operating cost`（`including transfer cost`）` Operating margin`（`loss`）` Operating expense Operating profit`（`loss`）` Non-operating income and expenses Net loss before tax								2020
		Nylon department		Weaving department		Trade department		Yarn dyeing and other departments		Total	Adjustment and write-off		Total
	$ 8,103,956 ( 8,108,841) ( 4,885 ) ( 281,516) ($ 286,401)			$ 2,596,558 ( 2,393,221) 203,337 ( 264,014) ($ 60,677)		$ 5,137,519 ( 5,095,532) 41,987 ( 34,551) $ 7,436	$ 141,108 ( 148,120) ( 7,012 ) ( 12,417) ($ 19,429)			$ 15,979,141 (15,745,714) 233,427 ( 592,498) ($ 359,071)	( $ 2,419,680 ) 2,420,821 1,141 1,194 $ 2,335	$ 13,559,461 (13,324,893) 234,568 ( 591,304) ( 356,736 ) ( 176,123) ($ 532,859)

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

Segment assets
Cash and cash equivalent Financial assets measured at FVTPL Notes and accounts receivable Loan to related parties receivable Inventory Other current assets Total current assets Financial assets measured at FVTPL Financial assets measured at FVTOCI Investments using equity method Property, plant and equipment Right-of-use asset Other intangible asset Other non-current asset Total assets				Dec 31, 2021
	Nylon department	Weaving department	Trade department	Yarn dyeing and other departments	Total	Adjustment and write-off	Total
	$ 100 - 1,088,620 - 1,994,905 66,560 3,150,185 - - - 3,195,878 538 1,573 158,751 $ 6,506,925	$ 300 - 448,332 - 1,069,350 21,020 1,539,002 - - - 1,853,429 - 1,525 21,539 $ 3,415,495	$ 49,339 187,823 1,531,159 - 70,439 1,162,028 3,000,788 - - - 28,655 - - 634 $ 3,030,077	$ 1,281,457 297,539 - 1,303,087 24,216 164,768 3,071,067 9,902 2,837,676 4,038,506 416,420 439 2,254 322,076 $ 10,698,340	$ 1,331,196 485,362 3,068,111 1,303,087 3,158,910 1,414,376 10,761,042 9,902 2,837,676 4,038,506 5,494,382 977 5,352 503,000 $ 23,650,837	$ - - ( 66,684 ) ( 737,927 ) ( 240 ) ( 985,976) ( 1,790,827) - ( 690,400 ) ( 1,412,322 ) - - - ( 491) ($ 3,894,040)	$ 1,331,196 485,362 3,001,427 565,160 3,158,670 428,400 8,970,215 9,902 2,147,276 2,626,184 5,494,382 977 5,352 502,509 $ 19,756,797

77 -

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

(c) Segment liabilities

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		2021 $ 5,380,328 13,228,828 2,153,774 2,473,827 1,015,679 $ 24,252,436		2020
				$ 4,982,983 3,933,215 1,655,531 2,092,549 895,183 $ 13,559,461

(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		Income from external customers 2021 2020 $ 22,686,174 $ 12,764,890 1,566,262 794,571 $ 24,252,436 $ 13,559,461	Income from external customers 2021 2020 $ 22,686,174 $ 12,764,890 1,566,262 794,571 $ 24,252,436 $ 13,559,461		Non-current assets	Non-current assets	Non-current assets
		2021 $ 22,686,174 1,566,262 $ 24,252,436			Dec31,2021		Dec31,2020
					$ 5,681,301 - $ 5,681,301		$ 5,729,670 - $ 5,729,670

78 -

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

(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 2021.

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

79 -

Li Peng Enterprise Co. Ltd and Subsidiaries

Reinvestment company funds to lend to others

202 1

Attached Table 1

Unit ： NTD thousand ； Foreign currency

No. `（`Note 1`）`	Financing Company	Loan and loanee	Financial Statement Account `（`note 2`）`	Related party	Maximum balance for the period `（`note 3`）`	Ending balance `（`note 8`）`	Amount actually drawn	Interest rate`％`	Nature for financing `（`note 4`）`	Transaction amounts `（`note 5`）`	Reason for short-term financing`（`note 6`）`	Allowance for bad debt	Collateral	Collateral	Financing Limits for Each Borrowing Company `（`note 7`）`	Financing Company’s Total Financing Amount Limits `（`note 7`）`
													`名` `稱`	`價` `值`
0 1 2 3	Li Peng Enterprise Co., Ltd. Li Mao Investment Co., Ltd. Li Shing Investment Co., Ltd. Hung Hsing Investment Co., Ltd.	PT INDONESIA LIBOLON FIBER SYSTEM Eton Petrochemical Co.,Ltd. In Talent Investments Limited Eton Petrochemical International Co., Ltd. Li Peng Enterprise Co., Ltd. Lealea Enterprise Co., Ltd. Li Ling Film Co., Ltd. Li Peng Enterprise Co., Ltd. Lealea Enterprise Co., Ltd. Li Ling Film Co., Ltd. Li Peng Enterprise Co., Ltd. Lealea Enterprise Co., Ltd.	Loan to related parties Loan to related parties Loan to related parties Loan to related parties Loan to related parties Loan to related parties Loan to related parties Loan to related parties Loan to related parties Loan to related parties Loan to related parties Loan to related parties	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes	$ 910,000 950,000 800,000 600,000 93,000 114,000 50,000 75,000 93,000 60,000 70,000 86,000	$ 910,000 900,000 - 600,000 93,000 93,000 - 75,000 75,000 60,000 70,000 68,000	$ 332,160 569,927 - - 25,000 90,000 - 75,000 75,000 - 68,000 68,000	1.40630~ 3.19860 1.39022~ 1.52255 1.42565~ 1.47 1.39022~ 1.52255 0.80514~ 0.88879 0.80514~ 0.86228 1.40326~ 1.52255 0.80514~ 0.88879 0.80514~ 0.86228 1.39022~ 1.52255 0.80514~ 0.88879 0.80514~ 0.86228	2 2 2 2 2 2 2 2 2 2 2 2	$ - - - - - - - - - -	`營運週轉` `營運週轉` `營運週轉` `營運週轉` `營運週轉` `營運週轉` `營運週轉` `營運週轉` `營運週轉` `營運週轉` `營運週轉` `營運週轉`	$ - - - - - - - - - - - -	- - - - - - - - - - - -	$ - - - - - - - - - - - -	$ 965,005 965,005 965,005 965,005 103,268 103,268 103,268 87,726 87,726 87,726 77,958 77,958	$ 3,860,020 3,860,020 3,860,020 3,860,020 413,072 413,072 413,072 350,905 350,905 350,905 311,836 311,836

Note 1 `：` Description of the number column: (1) The Company is "0". (2) The subsidiaries are numbered in order starting from "1".

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.
80 -

202 1

Unit ： NTD thousand

Li Peng Enterprise Co. Ltd and Subsidiaries

Provision of endorsements and guarantees to others.

Attached Table 2

No. `（`Note 1`）`	E n d o r s e r / g u a r a n t o r	Partybeingendorsed/guaranteed	Partybeingendorsed/guaranteed	Limit on endorsements/ guarantees provided for a single party `（`Note3`）`	Maximum outstanding endorsement/ guarantee amount as of December 31, 2021`（`Note4`）`	Outstanding endorsement/ guarantee amount at December 31, 2021 (Note5`）`	Actual amount drawn down (Note6`）`	Amount of endorsemen ts/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company`（％）`	Ceiling on total amount of endorsement s/ guarantees provided `（`Note3`）`	Provision of endorsements / guarantees by parent company to subsidiary `（`Note7`）`	Provision of endorsements / guarantees by subsidiary to parent company `（`Note7`）`	Provision of endorsements / guarantees to the party in Mainland China`（`Note7`）`	Note
		Company Name	Relationship with the endorser/ guarantor `（`Note2`）`
0	Li Peng Enterprise Co., Ltd.	Eton Petrochemical Co.,Ltd.	2	$1,930,010	$ 917,210	$ 917,210	$ 272,925	$ -	9.50	$3,860,020	Y	N	N

Note 1 : The numbers filled in for the endorsements/guarantees provided by the group or subsidiaries are as follows:

The Company is "0".
The subsidiaries are numbered in order starting from "1".

Note 2 : The following code represents the relationship with the company:

A company with which it does business.
A company in which the public company directly and indirectly holds more than 50 percent of the voting shares.
A company that directly and indirectly holds more than 50 percent of the voting shares in the public company.
A company in which the public company holds, directly or indirectly, 90% or more of the voting shares.
A company that fulfills its contractual obligations by providing mutual endorsements/guarantees for another company in the same industry or for joint builders for purposes of undertaking a construction project.
A company that all capital contributing shareholders make endorsements/ guarantees for their jointly invested company in proportion to their shareholding percentages.
Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.
Not e 3 ： Limit on endorsements/ guarantees provided for a single party i s 20% of the Li Peng company’s shareholders’ equity; Ceiling on total amount of endorsements/ guarantees provided i s 40% of the Li Peng company’s shareholders’ equity.
Not e 4 ： Maximum outstanding endorsement/ guarantee amount in the current year.
Not e 5 ： The amount agreed in the board resolution shall be listed. But based on the subparagraph 8, article 12 of Guideline for Capital Loan and Endorsement of the Public Companies, the board of members will authorize the chairman of the board for execution, the amount refers to the amount carried out by the Chairman of the Board.

Note 6 ： The actual used amount within the endorsed guaranteed balance range used by the endorsed company shall be listed.

Note 7 ： The listed parent company endorsement of the subsidiary company, the subsidiary company endorsement of the listed parent company or the endorsement from the Mainland China area shall list as Y category.

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Li Peng Enterprise Co. Ltd and Subsidiaries

Holding securities at the end of the period For the Year Ended Dec 31, 2021

Attached Table 3

Unit ： NTD thousand

Held Company Name	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
Li Peng Enterprise Co. Ltd.	Share Trade-Van Information Services Co., Ltd. Asia Pacific Telecom Co., Ltd. Information Technology Total Services Co. Ltd. Lealea Enterprise Co., Ltd. Taiwan Filament Weaving Development Co., Ltd. Huazhi Venture Capital Co., Ltd. Juyou Technology Co., Ltd. Techgains Pan-Pacific Corp. Book4u Co., Ltd.	NA `〃` `〃` The chairman is same as the company, and the company holds 15.89% of the shares and is the legal director NA `〃` `〃` `〃` `〃`	Financial assets mandatorily measured at FVTPL`－`current `〃` `〃` Financial assets measured at FVTOCI`－` non-current Financial assets mandatorily measured at FVTPL`－` non-current `〃` `〃` `〃` `〃`	427,675 3,277,157 33,750 71,743,197 3,302,964 21,739 180,491 150,000 6,250	$ 21,854 26,939 1,299 810,698 7,807 217 1,448 430 -	0.29 0.08 0.12 7.49 5.76 4.35 0.54 0.26 0.12	$ 21,854 26,939 1,299 810,698 - - - - -

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Held Company Name	Marketable securities type and name`（`note 1`）`	Relationship with the company`（`note 2`）`	Financial statement account	End of the	End of the	period		Note (note4)
				Shares`（`Units`）`	Carrying value `（`note 3`）`	`％`of ownership	Fair value
Li Mao Investment Co., Ltd. Hung Hsing Investment Co., Ltd. Li Shing Investment Co., Ltd.	Share Lealea Li Peng Share Lealea Li Peng Fund beneficiary certificate Jih Sun Money Market Fund Share Lealea Li Peng `力麒`	Shareholders who hold 46.62% of the equity Company’s parent company Shareholders who hold 46.98% of the equity Company’s parent company NA Shareholders who hold 47% of the equity Company’s parent company Li Shing's parent company, Li Peng, is an invested company evaluated using the equitymethod	Financial assets measured at FVTOCI `－`non-current `〃` Financial assets measured at FVTOCI `－`non-current `〃` Financial assets mandatorily measured at FVTPL `－`current Financial assets measured at FVTOCI `－`non-current `〃` Financial assets mandatorily measured at FVTPL `－`current	49,122,710 34,177,995 33,700,977 24,618,087 133,475.71 35,457,623 8,233,024 6,865,000	$ 555,086 352,033 380,821 253,566 2,000 400,671 84,800 65,217	5.13 3.74 3.52 2.69 - 3.70 0.90 0.92	$ 555,086 352,033 380,821 253,566 2,000 400,671 84,800 65,217	Pledge 16,495,000 shares as collateral for the issuance of short-term notes Pledge 16,212,000shar es as collateral for the issuance of short-term notes

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Held Company Name	Marketable securities type and name`（`note 1`）`	Relationship with the company`（`note 2`）`	Financial statement account	End of the	End of the	period		Note (note4)
				Shares`（`Units`）`	Carrying value `（`note 3`）`	`％`of ownership	Fair value
Libolon (Shanghai) International Trading Co., Ltd Libolon Energy Co., Ltd.	Fund beneficiary certificate Franklin Templeton Sinoam Money Market Fund Taishin Ta Chong Money Market Fund Jih Sun Money Market Fund Capital Money Market Fund Financial products Fortune Shuttle Enterprising No. 3 Tiantianli Puhui Plan Jing Xiang Zun Rong No.6 A Structured deposits Yuedeying Fund beneficiary certificate Jih Sun Money Market Fund	NA `〃` `〃` `〃` NA `〃` `〃` `〃` NA	Financial assets mandatorily measured at FVTPL`－`current `〃` `〃` `〃` Financial assets mandatorily measured at FVTPL `－`current `〃` `〃` `〃` Financial assets mandatorily measured at FVTPL `－`current	4,979,032.50 5,232,898.90 2,136,410.15 307,040.50 - - - - 1,071,861.63	$ 52,049 75,094 32,019 5,004 29,905 14,291 2,172 141,455 16,064	- - - - - - - - -	$ 52,049 75,094 32,019 5,004 29,905 14,291 2,172 141,455 16,064

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.

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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, 2021

Attached Table 4

Unit ： NTD thousand

Buyer (Seller)	Related Party	Relationship		Transactions	Transactions		Trading conditions and general trading circumstances and reasons (note 1)	Trading conditions and general trading circumstances and reasons (note 1)	Notes and accounts receivable (payable)	Notes and accounts receivable (payable)	Note (note 2`）`
			Buy (sell) goods	Amount	`％`of total buy (sell)	Credit period	Unit Price	Credit period	Balance	`％`of total notes and accounts receivable (payable)
Li Peng Enterprise Co., Ltd. `〃` `〃` `〃`	Lealea Enterprise Co., Ltd. `〃` Li Ling Film Co., Ltd. Libolon (Shanghai) International Trading Co.,Ltd.	Chairman is same as the company `〃` `〃` 100% of the company's indirect shares are investee	Buy Sell Sell Sell	$ 705,518 ( 609,434 ) ( 539,333 ) ( 595,272 )	8 ( 5 ) ( 4 ) ( 5 )	Notes receivable 30 days after shipment `〃` Notes receivable 60 days after shipment T/T 180 days after shipment	NA `〃` `〃` `〃`	NA `〃` `〃` `〃`	Notes and accounts payable ( $ 184,123 ) Notes and accounts receivable 133,122 Notes and accounts receivable 189,277 Notes and accounts receivable 61,928	( 13 ) 9 12 4

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.

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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, 2021

Attached Table 5 Unit ： NTD thousand

Attached Table 5								Unit`：`NTD thousand
Account receivable company	Related party	Relationship	Balance (Note 1)	Turnover rate	Overdue		Amounts received in subsequent period	Allowance for bad debts
					Amount	Disposition
Li Peng Enterprise Co., Ltd. `〃` `〃`	Lealea Enterprise Co., Ltd. Eton Petrochemical Co., Ltd. Li Ling Film Co., Ltd.	Chairman is same as the company A related party in which the company directly holds 75% of its shares Chairman is same as the company	Notes and accounts receivable $ 133,122 Other receivables 748,266 Notes and accounts receivable 189,277	5.47times NA 3.58times	$ - - -	- - -	$ 64,233 748,266 50,757	$ - - -

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.

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Li Peng Enterprise Co. Ltd and Subsidiaries

Intercompany relationships and significant intercompany transactions

Jan 1 to Dec 31, 2021

Attached Table 6

Unit ： NTD thousand

Attached Tab	le 6						Unit`：`NTD thousand
No. `（`Note 1`）`	Company name	Counter party	Relationship `（`Note 2`）`		Intercompanytransactions
				Financial statements item	Amount	Terms	`％`of Consolidated Net Revenue or Total Assets `（`Note 3`）`
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0	Li Peng Company `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	Libolon Shanghai Co. `〃` `〃` `〃` `〃` In Talent Li Shing Co. `〃` `〃` Hung Hsing Co. `〃` `〃` Li Mao Co. `〃` `〃` Eton Petrochemical Co. `〃` `〃` `〃` `〃` `〃` `〃`	(4) `〃` `〃` `〃` `〃` (1) (1) `〃` `〃` (1) `〃` `〃` (1) `〃` `〃` (1) `〃` `〃` `〃` `〃` `〃` `〃`	Accounts receivable Sales revenue Temporary payments Advance sales receipts Outsourcing expense Interest income Interest expense Interest payable Loan from related parties Interest expense Interest payable Loan from related parties Interest expense Interest payable Loan from related parties Accounts receivable Other receivables Service income Rental income Service expense Loan to related parties Interest receivable	$ 61,928 595,272 190 491 3,232 353 503 52 75,000 449 47 68,000 259 17 25,000 572 748,266 5,918 610 6,055 569,927 578	no major differences between trading conditions and general customers `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	- 2 - - - - - - - - - - - - - - 4 - - - 3 -

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No. `（`Note 1`）`	Company name	Counter party	Relationship `（`Note 2`）`		Intercompanytransactions	Intercompanytransactions
				Financial statements item	Amount	Terms	`％`of Consolidated Net Revenue or Total Assets `（`Note 3`）`
0 0 0 0 0 0 0 1 2 2 2	Li Peng Company `〃` `〃` `〃` `〃` `〃` `〃` In Talent Eton Petrochemical Co. `〃` `〃`	Eton Petrochemical Co. `〃` Libolon Energy Co. Eton International Co. `〃` `〃` `〃` Eton Petrochemical Co. Eton International Co. `〃` `〃`	(1) `〃` (1) (4) `〃` `〃` `〃` (3) (3) `〃` `〃`	Interest income Other payables Other receivables Interest income Accounts receivable Other receivables Service income Service income Accounts receivable Other receivables Service income	$ 2,955 4,242 132 16 45 78,047 43 7 41 158,816 40	no major differences between trading conditions and general customers `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃` `〃`	- - - - - - - - - 1 -

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 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. (4) Parent to sub-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.
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Li Peng Enterprise Co., Ltd. and Subsidiaries

Names, Locations, And Related Information of Investees

Jan 1 to Dec 31, 2021

Attached Table 7

Unit ： NTD thousand

Buyer (Seller)	Related party `（`Note 1`、`2`）`	Location	Main business and products	Original inves	tment amount	Balance at the end	Balance at the end	ofperiod	Net Income (Losses) of the Investee `（`Note 4(2)`）`	Share of Profits/Losses of Investee `（`Note 4(3)`）`	Note
				End of period	End of last year	Shares	Ratio`％`	Carrying amount
Li Peng Enterprise Co., Ltd. In Talent Investments Limited Li Mao Investment Co., Ltd. Li Shing Investment Co., Ltd. Hung Hsing Investment Co., Ltd. Eton Petrochemical Co.,Ltd.	In Talent Investments Limited Li Mao Investment Co., Ltd. Hung Hsing Investment Co., Ltd. Li Shing Investment Co., Ltd. Li Hao Investment Co., Ltd. Li Zan Investment Co., Ltd. Lealea Technology Co., Ltd. Li Ling Film Co., Ltd. Rich Development Co., Ltd. Fu Li Transport Co., Ltd. Lea Jie Energy Co., Ltd. Libolon Energy Co., Ltd. PT.INDONESIA LIBOLON FIBER SYSTEM Eton Petrochemical Co.,Ltd. Libolon (Shanghai) International Trading Co., Ltd. Li Ling Film Co., Ltd. `〃` `〃` Eton Petrochemical International Co., Ltd.	Samoa 11th Floor, No.162 Songjiang Road, Taipei City `〃` `〃` `〃` `〃` `〃` `〃` 8th Floor, No. 99, Jilin Road, Taipei City No. 122, Zili Second Street, Wuqi District, Taichung City 4th Floor, No.162 Songjiang Road, Taipei City No. 38, Gongye Road, Houliao Village, Fangyuan Township, Changhua County Lantai 1 JI. Cideng Barat No. 15, RT.011/RW.001 Kel. Duri Pulo. Kec, Gambir. DKZ Jakarta 4th Floor, No.162 Songjiang Road, Taipei City Room 532, 5th Floor, No. 88 Taigu Road, Waigaoqiao Free Trade Zone, Shanghai 11th Floor, No.162 Songjiang Road, Taipei City `〃` `〃` Samoa	Reinvestment related business Reinvestment in various production businesses, securities investment, banks. `〃` `〃` `〃` `〃` Technology software services Nylon film production Entrusted builders to build commercial buildings and lease and sell residential buildings Automobile container freight industry, warehousing industry, automobile and parts manufacturing industry Coal retail and wholesale Renewable energy, self- powered generation equipment and cogeneration industry Knitted fabric, fabric improvement Chemical raw material wholesale Weaving, dyeing, finishing, processing, manufacturing, and trading of man-made fibers Nylon film production `〃` `〃` Chemical raw material wholesale	$ 65,893 415,715 401,449 415,280 363,629 329,212 40,408 20,000 492,829 28,000 90,000 21,000 757,965 9,000 65,893 990 60,000 35,115 29	$ 65,893 415,715 401,449 415,280 363,629 329,212 40,408 20,000 492,829 28,000 90,000 21,000 757,965 9,000 65,893 990 60,000 35,115 29	2,000,000 40,356,000 26,296,000 42,400,000 35,244,000 21,540,000 8,097,154 2,000,000 51,117,852 2,800,000 9,000,000 2,100,000 5,730,000 900,000 2,000,000 33,000 2,000,000 1,170,500 1,000	100.00 53.38 53.02 53.00 46.62 46.83 18.54 3.33 6.87 20.00 30.00 70.00 30.00 75.00 100.00 0.06 3.33 1.95 100.00	$ 301,078 363,334 278,857 419,955 422,134 254,905 129,367 11,911 933,304 37,720 105,706 11,978 711,944 34,544 301,284 198 11,983 7,013 2,575	$ 4,768 561 2,666 ( 433 ) ( 4,034 ) ( 2,529 ) 129,797 ( 113,991 ) 306,691 12,418 40,659 ( 9,783 ) ( 68,548 ) 33,164 5,144 ( 113,991 ) ( 113,991 ) ( 113,991 ) 2,582	$ 4,278 299 1,414 ( 229 ( 1,881 ( 1,185 24,070 ( 3,799 21,072 2,483 12,230 ( 6,848 ( 29,744 24,873 - - - - -	) ) ) ) ) )

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.

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Note 2: 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 3: 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

Jan 1 to Dec 31, 2021

Unit ： NTD thousand, original currency in yuan

Information on investment in China

Attached Table 8

Related party in China	Main business	Paid-in capital	Investment method	Beginning of the period Cumulative investment amount remitted from Taiwan	Investment am recovered in th	ount remitted or e currentperiod	End of the period Remit from Taiwan accumulated investment amount	Invested company’s current profit and loss	The company’s direct or indirect investment % of shares held	Recognized in this period Investment profits and losses (note 2B)	Investment carrying amount at end of period	Investment income remitted back to Taiwan as of the current period
					Outflow	Inflow
Libolon (Shanghai) International Trading Co., Ltd.	Weaving, dyeing, finishing, processing, manufacturing, and trading of man-made fibers	$ 65,893 USD 2,000,000	`（`Note 2`、`(2)`）`	$ 65,893 ( USD 2,000,000 )	$ -	$ -	$ 65,893 ( USD 2,000,000 )	$ 5,144	100	$ 5,144	$ 301,284	$ -

	Accumulated Investmen as of Decembe	t in Mainland China r 31, 2021			Inves Inve	tment Amounts Authorized by stment Commission, MOEA				Upper limit on	investment
	USD 2,000,000 NTD 65,893					USD 2,000,000 NTD 65,893				$ 5,790,029

Note 1: 2021annual average exchange rate RMB to NTD=1: 4.3413

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.

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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, 2021

Attached Table 9

Unit ： except for specifically indicated in NTD thousand

Related Party in China	Transaction	Purchase, sale`（`Note`）`	Purchase, sale`（`Note`）`	Price	Terms	Terms	Notes, accounts receivable (payable)	Notes, accounts receivable (payable)	Unrealized profit (loss)	Note
		Amount	%		Payment terms	Compare to normal trade	Amount	%
Libolon (Shanghai) International Trading Co., Ltd.	Sale	( $ 595,272 )	( 5 )	Set according to local market conditions, trading conditions are similar to general customers	180 days after shipment, the collection period will be extended depending on local conditions	Similar	Accounts Receivable $ 61,928	4	$ -

Note: In the case of property transactions or other types of transactions, the terms should be modified according to the circumstances.

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Li Peng Enterprise Co., Ltd.

Information of main shareholder

Dec 31, 2021

Attached Table 10

Main Shareholders	Share	Share
	Shares held	Share hold ratio
Lealea Enterprise Co., Ltd. Li Hao Investment Co., Ltd.	145,353,853 51,222,968	15.89 5.60

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: If 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.
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Li Peng Enterprise Co., Ltd.

"Consolidated Financial Statements of Affiliated Companies" &

Accountant’s Review Report (omitted)

2021

94 -
Consolidated financial statements of related companies
A. Consolidated balance sheet of related companies (omitted).
B. income statement of the consolidation of related companies (omitted).
Notes to the consolidated financial statements of related companies
A. Subsidiary company details:

Subsidiary company name	Relationship with parent company	Business function	Share hold ratio`／` Invested amount ratio
In Talent Investments Limited.	100% directly owned subsidiary	Reinvestment related business	100.00%
Libolon (Shanghai) International Trading Co.,Ltd.	100% indirectly owned subsidiary	Weaving, dyeing, finishing, processing, manufacturing, and trading of man-made fibers	100.00%
Li Mao Investment Co., Ltd.	53.38% directly owned subsidiary	Reinvestment in various production businesses, securities investment companies,banks	53.38%
Hung Hsing Investment Co., Ltd.	53.02% directly owned subsidiary	Reinvestment in various production businesses, securities investment companies,banks	53.02%
Li Shing Investment Co., Ltd.	53.00% directly owned subsidiary	Reinvestment in various production businesses, securities investment companies,banks	53.00%
Libolon Energy Co., Ltd.	70% directly owned subsidiary	Renewable energy self-powered generation equipment and cogeneration industry	70.00%
Eton Petrochemical Co.,Ltd.	75% directly owned subsidiary	Chemical raw material wholesale	75.00%
Eton Petrochemical International Co.,Ltd.	100% indirectly owned subsidiary	Chemical raw material wholesale	100.00%

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B. Including changes in the subsidiary companies in the consolidated financial statements of the related companies in the current period: NA.
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) Provision of endorsements and guarantees to others: Attached Table 2.
(4) Derivative financial products: NA.
(5) Significant contingencies: please specify Note 31 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 3 of the consolidated financial report of Li Peng Enterprise Co., Ltd. and its subsidiaries.
J. Other: NA
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AI assistant

LP — Annual Report 2021

51810_rns_2021-11-12_2ca1c488-8cd2-474f-8c57-170f10d0e66d.pdf

§DIRECTORY§

REPRESENTATION LETTER

Independent Auditor’s Report

To Li Peng Enterprise Corporation Limited

Opinion

Basis for Opinion

Key Audit Matters

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

Li Peng Enterprise Co Ltd and Subsidiaries Consolidated Balance Sheets Dec 31, 2020, 2021

Li Peng Enterprise Co Ltd and Subsidiaries

Consolidated Statements of Comprehensive Income

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Li Peng Enterprise Co Ltd and Subsidiaries Consolidated Statements of Cash Flows Jan 1 to Dec 31, 2020, 2021

Unit ： Thousands of NTD

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1.Consolidated Company History

2.The Authorization of Financial Statements

4. Major Accounting Policies Descriptions

B. Financial Assets at Amortized Cost

(n) Income Recognition

Commodity Sales Revenue

(p) Borrowing Cost

(q) Government Subsidies

(r) Employee Benefits

2. Retirement Benefits

(t) Treasury Stock

(u) Income Tax

6. Cash and Cash Equivalents

8. Notes and Accounts Receivable

Accounts Receivable

9. Inventories

10. Other financial assets - current

12. Subsidiaries

13. Investments Using Equity Method Invested Associates

PT. INDONESIA LIBOLON FIBER SYSTEM

Summarized Information on Each Insignificant Associates ：

14. Property, Plant and Equipment

(b) Lease Liabilities

(c) Other information on lease

16. Other Intangible Assets

17. Borrowing

(a) Short-term loan

19. Retirement Benefit Plans

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(b) Capital reserve

(e) Treasury stock

21. Income

22. Continuing operation unit net profit

(a) Interest income

(b) Other income

Amount

23. Continuing operating business unit’s income tax

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(e) Unlisted loss deduction information

24. Profit (Loss) per share

25. Business consolidation

(a) Acquisition of subsidiary

26. Equity transactions with non-controlling interests

27. Capital risk management

28. Financial instruments

1. Market risk

Sensitivity analysis

Dec 31, 2021

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29. Trading with Related Parties

(c) Purchases

(j) Loan to related parties

(m) Salary of senior management

(n) Other related parties’ transactions

30. Pledged assets

31. Significant contingent liabilities and unrecognized commitments

32. Other matters

33. Significantly influencing foreign currency financial assets and liabilities information

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LP Annual Report 2021

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Unit `：` Thousands of NTD

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Summarized Information on Each Insignificant Associates `：`

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(c) Information on investments in China `：`

Note 1 `：` Description of the number column: (1) The Company is "0". (2) The subsidiaries are numbered in order starting from "1".

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