LP — Annual Report 2021

Nov 12, 2021

Stock Code: 1447

Li Peng Enterprise Corporation Limited

Individual 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.	Independent Auditors’ Report	3～6	-
4.	Individual Balance Sheet	7	-
5.	Individual Statements of Comprehensive	8～9	-
	Income
6.	Individual Statements of Changes in Equity	10	-
7.	Individual Statements of Cash Flows	11～12	-
8.	Notes to Individual Financial Statements
a.	Company History	13	1
b.	The Authorization of Financial Statements	13	2
c.	Application of New and Revised International	13～15	3
	Financial Reporting Standards
d.	Major Accounting Policies Descriptions	15～30	4
e.	Critical Accounting Judgments and Key	31	5
	Sources of Estimation, and Uncertainty
f.	Major Accounting Item Descriptions	31～55	6-24
g.	Trade Between Related Parties	60～67	29
h.	Pledged Assets	67	30
i.	Significant Contingent Liabilities and	67～68	31
	Unrecognized Commitments
j.	Loss from Major Disasters	-	-
k.	Major Events After Reporting Period	-	-
l.	Others	55～60、67～70	25-28, 32-33
m.	Other Disclosure
	(1)Related information on major transactions	70	34
	(2)Related information on reinvestment	70	34
	(3)Related information on investments in	70~71	34
	China
	(4)Information on major shareholders	71	34
n.	Segment Information	71	35
9.	List of Major Accounting Items	83～113	-

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Independent Auditors’ Report

To Li Peng Enterprise Corporation Limited

Opinion

We have audited the accompanying individual financial statements of Li Peng Enterprise Corporation Limited (the “Company”), which comprise the individual balance sheets as of December 31, 2021 and 2020, and the individual statements of comprehensive income, changes in equity and cash flows for the years then ended, and the notes to the individual financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying individual financial statements present fairly, in all

material respects, the accompanying individual financial position of the Company as of December 31, 2021 and 2020, and its individual financial performance and its individual cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

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 Individual 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 individual financial statements for the year ended December 31, 2021. These matters were addressed in the context of our audit of the individual financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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Key audit matters for the Company’s parent only 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 62% 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 individual 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.

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

Management is responsible for the preparation and fair presentation of the individual financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, and for such internal control as management determines is necessary to enable the preparation of individual financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the individual 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 Individual Financial Statements

Our objectives are to obtain reasonable assurance about whether the individual 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 individual financial statements.

As part of an audit in accordance with auditing standards generally accepted in the Republic

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of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the individual 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.

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

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

4. Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the 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 individual 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 to cease to continue as a going concern.

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

6. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the individual 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.)

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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 individual 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 Document no. 1000028068

Financial Supervisory Commission ROC vetted Document no. 0930160267

March 28, 2022

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Unit ： Thousands of NTD

Li Peng Enterprise Co Ltd Individual Balance Sheets

December 31, 2020 to 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 2280 2220 2250 2320 2399 21XX 2580 2540 2570 2640 2670 25XX 2XXX 3110 3200 3310 3320 3350 3300 3400 3500 3XXX	Assets Current Assets Cash and cash equivalents (Note 6) Financial assets at fair value through profit or loss (Note 7) Notes receivable（Note 8） Notes receivable – related parties（Note 29） Accounts receivable（Note 8） Accounts receivable – related parties（Note 29） Loan to related parties（Note 29） Inventory（Note 9） Prepayments Other financial assets - current（Note 10, 29） 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 12） Property, plant, equipment（Note 13） Right of use asset（Note 14） Other intangible assets（Note 15） Net 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 16） Short-term corporate bonds payable（Note 16） Notes payable Notes payable－related parties（Note 29） Accounts payable Accounts payable－related parties（Note 29） Other payable（Note 17, 29） Lease liability－current（Note 14） Loan from related parties (Note 29） Current provisions Long-term loan due in a year（Note 18） Other current liability Total current liabilities Non-current liability Lease liability－non-current（Note 14） Long-term loan（Note 18） Deferred income tax liability（Note 23） Accrued pension liability－non-current（Note 19） Other non-current liability Total non-current liabilities Total Liability Equity（Note 20） Common stock Capital reserve Retained earning Legal reserve Special reserve Accrued loss Total retained earnings Other equity Treasury stock Total Equity Total of Liability and Equity		December 31,2021	December 31,2021	％ 7 - - 1 6 1 5 17 - 5 - 42 - 4 22 29 - - 2 1 - 58 100 15 4 - - 6 1 8 - 2 - - 1 37 - 9 1 1 - 11 48 49 1 3 1 - 4 - 2) 52 100		December 31,2020	December 31,2020
			Amount $ 1,279,090 50,092 88,906 192,906 1,063,602 192,154 902,087 3,088,472 63,170 994,553 17,887 7,932,919 9,902 810,698 4,016,737 5,465,726 538 5,352 311,310 180,136 466 10,800,865 $ 18,733,784 $ 2,795,000 800,000 38,370 85,560 1,139,194 110,584 1,433,345 177 281,000 5,174 31,250 165,309 6,884,963 362 1,793,750 146,840 256,602 1,218 2,198,772 9,083,735 9,144,872 185,591 525,527 229,670 42,496) 712,701 62,608) 330,507) 9,650,049 $ 18,733,784				Amount $ 926,455 55,979 33,170 52,264 1,301,064 611,603 597,329 1,994,434 51,630 458,987 5,827 6,088,742 11,825 947,010 3,979,609 5,518,193 720 8,055 365,891 169,784 3,318 11,004,405 $ 17,093,147 $ 2,044,000 1,120,000 54,765 8,705 789,047 56,451 752,603 107 230,000 20,372 155,000 121,505 5,352,555 541 1,875,000 146,650 235,805 705 2,258,701 7,611,256 9,144,872 134,620 525,527 602,637 662,075) 466,089 168,713 432,403) 9,481,891 $ 17,093,147		％
		( ( (		(		( (		( (	5 - - - 8 4 4 12 - 3 - 36 - 6 23 32 - - 2 1 - 64 100 12 7 - - 5 - 5 - 1 - 1 1 32 - 11 1 1 - 13 45 53 1 3 4 4) 3 1 3) 55 100

The accompanying notes are an integral part of the individual 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

Individual Statements of Comprehensive Income

Jan 1 to Dec 31 2020, 2021

Unit: Thousands of NTD, Except loss per share

2021 Code Amount 4000 Operating revenue（Note 21, 29） $ 12,268,967 5000 Operating cost（Note 9, 29） 11,212,329 5900 Operating margin 1,056,638 5910 Unrealized sales (profit) loss 72 5920 Realized sales (loss) profit 320 5950 Realized operating margin 1,057,030 Operating expense（Note 29） 6100 Sales expense 429,995 6200 Management expense 188,640 6300 R&D expense 109,784 6450 Expected credit loss ( gain) on reversal of impairment loss 1,419 6000 Total operating expenses 729,838 6900 Operating net profit (loss) 327,192 Non-operating income and expenses 7100 Interest income（Note 22, 29） 11,596 7010 Other income（Note 22, 29） 44,920 7020 Other profit and loss（Note 22） ( 62,856 ) 7050 Finance cost（Note 22, 29） ( 42,803 ) 7070 Share of profits of subsidiaries and associates 47,033 7000 Total non-operating income and loss ( 2,110)		2021		％ 100 91 9 - - 9 3 2 1 - 6 3 - - - - - -		2020
								％
							100 98 2 - - 2 3 1 1 - 5 ( 3) - 1 ( 3 ) - - ( 2)

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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 8330 Share of other comprehensive gain of subsidiaries and associates 8360 Items that may be reclassified subsequently to profit or loss: 8361 Exchange differences resulting from translation on foreign operations 8380 Share of other comprehensive gain of subsidiaries and associates 8300 Total other comprehensive income of the year 8500 Total comprehensive income of the year Earning (loss) per share（Note 24） 9710 Basic earnings per share 9810 Diluted earnings per share		2021

The accompanying notes are an integral part of the individual financial statements. Chairman: Kuo, Shao-Yi Manager ： Kuo, Shao-Yi Head of Accounting ： Ko, Pei-Chun

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Individual Statements of Changes in Equity

Li Peng Enterprise Co Ltd

Jan 1 to Dec 31, 2020, 2021

Unit ： Thousands of NTD

Code A1 Balance as of Jan 01, 2020 Changes to other capital reserve： C7 Change in associates using equity method M7 Changes to equity ownership of subsidiary Q1 Subsidiary and associates’ disposal of equity tool through other comprehensive income D1 Net Loss in 2020 D3 Other comprehensive income in 2020 D5 Total comprehensive income in 2020 Z1 Balance as of Dec 31, 2020 B17 Reversal of Special Reserve Changes to other capital reserve： C7 Change in associates using equity method Q1 Associates’ disposal of equity tool through other comprehensive income D1 Net Profit in 2021 D3 Other comprehensive income in 2021 D5 Total comprehensive income in 2021 L7 Disposal of the parent company’s stock by a subsidiary is regarded as a treasury stock transaction N1 Treasury stock transferred to employees Z1 Balance as of Dec 31, 2021	Share Capital Share（Thousands） Share Capital 914,487 $ 9,144,872 - - - - - - - - - - - - 914,487 9,144,872 - - - - - - - - - - - - - - - - 914,487 $ 9,144,872	Share Capital Share（Thousands） Share Capital 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 Exchange difference $ 248,943 ) - - 14,363 ) 412,009 ) 13,240 398,769) 662,075 ) 372,967 - 5,239 269,155 27,782) 241,373 - - $ 42,496)		Other EquityItems Financial assets unrealized profit and loss at fair value through other comprehensive income Subsidiary using Associates using Parent Company EquityMethod EquityMethod $ 121,782 ( $ 327,584 ) ( $ 225,776 ) - - - - - - - ( 6,116 ) 20,479 - - - 261,635 235,052 120,876 261,635 235,052 120,876 383,417 ( 98,648 ) ( 84,421 ) - - - - - - - ( 2,467 ) ( 2,772 ) - - - ( 136,312) ( 113,249) 37,454 ( 136,312) ( 113,249) 37,454 - - - - - - $ 247,105 ($ 214,364) ($ 49,739)	Other EquityItems Financial assets unrealized profit and loss at fair value through other comprehensive income Subsidiary using Associates using Parent Company EquityMethod EquityMethod $ 121,782 ( $ 327,584 ) ( $ 225,776 ) - - - - - - - ( 6,116 ) 20,479 - - - 261,635 235,052 120,876 261,635 235,052 120,876 383,417 ( 98,648 ) ( 84,421 ) - - - - - - - ( 2,467 ) ( 2,772 ) - - - ( 136,312) ( 113,249) 37,454 ( 136,312) ( 113,249) 37,454 - - - - - - $ 247,105 ($ 214,364) ($ 49,739)	Other EquityItems Financial assets unrealized profit and loss at fair value through other comprehensive income Subsidiary using Associates using Parent Company EquityMethod EquityMethod $ 121,782 ( $ 327,584 ) ( $ 225,776 ) - - - - - - - ( 6,116 ) 20,479 - - - 261,635 235,052 120,876 261,635 235,052 120,876 383,417 ( 98,648 ) ( 84,421 ) - - - - - - - ( 2,467 ) ( 2,772 ) - - - ( 136,312) ( 113,249) 37,454 ( 136,312) ( 113,249) 37,454 - - - - - - $ 247,105 ($ 214,364) ($ 49,739)		TreasuryStock $ 432,403 ) - - - - - - 432,403 ) - - - - - - 68,446 33,450 $ 330,507)		Total
									Foreign Organization Financial report Exchange difference ( $ 24,523 ) - - - - ( 7,112) ( 7,112) ( 31,635 ) - - - - ( 13,975) ( 13,975) - - ($ 45,610)
					Legal Reserve $ 525,527 - - - - - - 525,527 - - - - - - - - $ 525,527	Special Reserve $ 602,637 - - - - - - 602,637 ( 372,967 ) - - - - - - - $ 229,670				Parent Company $ 121,782 - - - - 261,635 261,635 383,417 - - - - ( 136,312) ( 136,312) - - $ 247,105	Subsidiary using EquityMethod ( $ 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
						(	( ( ( ( ( ( (		( ( ( ( ( ( (	( (	( ( ( ( ( ( (	( ( ( (	( ( (		( (	$ 9,269,633 141 435 - 412,009 ) 623,691 211,682 9,481,891 - 4,005 - 269,155 253,864) 15,291 113,338 35,524 $ 9,650,049

The accompanying notes are an integral part of the individual 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 Individual 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 loss (gain) 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 A22400 Share of income to associates using equity method A22500 Gain on disposal of property, plant, equipment A23200 Gain on disposal of investments accounted for using equity method, net A23800 Impairment loss (reversal of impairment loss) on inventory A24000 Realized profit on sales to subsidiaries and associates A24100 Gain on foreign exchange, net A30000 Changes in operating assets and liabilities A31130 Notes receivable A31150 Accounts receivable A31200 Inventory A31230 Prepayment A31240 Other current assets A31250 Other financial assets A32130 Notes payable A32150 Accounts payable A32180 Other payables A32200 Current provisions A32240 Accrued pension liabilities A32230 Other current liability A33000 Cash generated from operations		2021 $ 325,082 584,279 4,349 1,419 66,928 7,810 42,803 11,596 ) 842 ) 2,150 47,033 ) 6,209 ) - 86,082 392 ) 83,024 ) 196,978 ) 685,752 1,180,120 ) 80,850 ) 12,075 ) 539,262 ) 60,460 402,929 690,472 15,660 ) 8,466 ) 45,641 823,649		2020
	( ( ( ( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (	$ 533,806 ) 614,708 6,405 2,752 ) 71,701 26,566 ) 57,704 31,529 ) 1,555 ) - 39,240 ) 668 ) 51 ) 71,083 ) 4,704 8,665 ) 1,512 280,928 601,139 67,341 ) 2,192 388,322 ) 13,695 ) 374,405 269,304 1,347 ) 17,931 ) 43,380) 1,036,771

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Code A33100 Interest income AC0200 Dividend income A33200 Dividend income from associates A33300 Interest payable A33500 Income tax payable AAAA Cash inflow from operating activities Cash Flows From Investing Activities B00010 Acquisition of financial assets at fair value through other comprehensive income B01800 Acquisition of associates B01900 Disposal of associates B02700 Acquisition of property, plant, equipment B02800 Disposal of property, plant, equipment B03800 Increase in refundable deposit B04500 Acquisition of intangible asset B04300 Increase in loan to related parties receivable BBBB Cash outflow from investment activity Cash Flows From Financing Activities C00100 (Decrease) increase 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 in refundable deposits received C03700 Loan payable to related parties (less) more C05100 Treasury stock transferred to employee CCCC Cash inflows (outflows) from financing activities DDDD Effect of exchange rate on cash or cash equivalents EEEE Net Increase (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 $ 10,916 842 39,350 43,118 ) 10,052 841,691 - - - 554,956 ) 6,641 119 ) 1,646 ) 288,743) 838,823) 751,000 320,000 ) 1,825,000 2,030,000 ) 106 ) 513 51,000 33,374 310,781 38,986 352,635 926,455 $ 1,279,090		2020
	( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( ( ( ( (	$ 33,262 1,555 41,872 58,583 ) 4,043) 1,050,834 3,127 ) 787,965 ) 15,083 244,580 ) 1,052 - 3,193 ) 617,522) 1,640,252) 2,006,000 ) 500,000 875,000 295,000 ) 236 ) 200 95,000 ) - 1,021,036) 10,321 1,600,133 ) 2,526,588 $ 926,455

The accompanying notes are an integral part of the individual 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 Individual Financial Statement Note Jan 1 to Dec 31, 2021, 2020

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

1. 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.

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

1. The Authorization of Financial Statements

2. The accompanying financial statements were approved and authorized for issue by the

Board of Directors on March 28, 2022.

1. Application of New and Revised International Financial Reporting Standards

2. (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 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”	Effective Date Issued by IASB
	January 1, 2022（Note 1） January 1, 2022（Note 2） January 1, 2022（Note 3）

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New, Revised or Amended Standards and Effective Date Issued by Interpretations IASB Amendments to IAS 37 “Onerous Contracts – Cost January 1, 2022 （ Note 4 ） of Fulfilling a Contract”

• 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.

• 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.

(c) The IFRSs issued by IASB but not yet endorsed and issued into effect by the FSC

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”

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）

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New, Revised or Amended Standards and Effective Date Issued by Interpretations IASB (Note 1) Amendments to IAS 12“Deferred income tax relation to assets and liabilities arising from a single transaction” January 1, 2023 （ Note 4 ）

• 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.

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. Summary of Significant Accounting Policies

• (a) Statement of Compliance The accompanying individual financial statements have been prepared in conformity with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

• (b) Basis of Preparation

• The accompanying individual financial statements have been prepared on the historical cost basis except for financial instruments that are measured at fair values and for the net defined benefit liabilities recognized at fair value of the planned assets at the present value of the defined benefit liabilities, as explained in the accounting policies below.

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).

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• 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.

When preparing the individual financial statements, the Corporation used the equity method to account for its investments in subsidiaries and associates. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in the individual financial statements to be the same with the amounts attributable to the owners of the Corporation in its Individual financial statements, adjustments arising from the differences in accounting treatments between the individual basis and the Individual basis were made to investments accounted for using the equity method, the share of profit or loss of subsidiaries and associates, the share of other comprehensive income of subsidiaries and associates and the related equity items, as appropriate, in these individual financial statements.

• (c) Classification of Current and Noncurrent Assets and Liabilities

  • Current Assets include ：

• Assets held for trading purposes;

• Expected to be converted to cash, sold or consumed within 12 months from the end of the reporting period ； and

• Cash and cash equivalent (not including the restricted users for exchange or settle liabilities after over 12 months from the balance sheet date.)

  • Current Liabilities include ：

• Liabilities held for trading purposes;

• Liabilities expected to be settled within 12 months from the balance sheet date (including liabilities from long-term refinancing or readjusting payment agreement even if it’s after the balance sheet date until the approved release date of financial report; and

• The deadline to settle liabilities cannot be deferred unconditionally to later than 12 months after the balance sheet date. The terms of the liability may depend on the counterparty's choice, the issuance of equity instruments to cause its liquidation does not affect the classification.

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

• (d) 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 acquire 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

• 16 -

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 company directly disposes of its previously held equity.

• (e) Foreign Currencies

In preparing the financial statements, 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 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.

• (f) 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.

• (g) Investment Accounted for Using Equity Method Investment accounted for using equity method are investments in subsidiaries and associates.

1. Investment in subsidiary

• A subsidiary refers to an entity that the company has control over.

• Under the equity method, the investment is initially recognized at cost, and the book amount obtained in the future will increase or decrease with the Company's share of subsidiary’s profits and losses and other comprehensive profits and losses

• 17 -

and profit distribution. In addition, changes in the Company's other rights and interests of subsidiaries are recognized based on the shareholding ratio.

When the Company's changes in the ownership and equity of the subsidiary do not result in the loss of control, it is treated as an equity transaction. The difference between the book value of the investment and the fair value of the consideration paid or received is directly recognized as equity.

When the Company’s share of losses in a subsidiary equals or exceeds its equity in the subsidiary (including the book value of the subsidiary under the equity method and other long-term equity that is essentially part of the Company’s net investment in the subsidiary), it is continued to recognize losses based on shareholding ratio.

The amount of the acquisition cost exceeding the Company’s share of the net fair value of the identifiable assets and liabilities of the subsidiaries that constitute the business on the acquisition date is classified as goodwill, which is included in the carrying amount of the investment and cannot be amortized; the amount by which the net fair value of the identifiable assets and liabilities of the subsidiary’s identifiable assets and liabilities that constitute the business on the day exceeds the cost of acquisition is recorded as current income.

When the Company assesses impairment, it considers the cash-generating unit as a whole in the financial report and compares its recoverable amount with the book value. If the recoverable amount of the asset increases subsequently, the reversal of the impairment loss shall be recognized as an interest, but the book value of the asset after the reversal of the impairment loss shall not exceed the asset that should be deducted if the impairment loss is not recognized as the carrying amount after amortization. The impairment loss attributable to goodwill shall not be reversed in subsequent periods.

When it loses control of a subsidiary, the Company measures its remaining investment in the former subsidiary at the fair value on the date of loss of control. The fair value of the remaining investment and the difference between any disposal price and the book value of the investment on the date of loss of control are included in current profit and loss. In addition, all amounts recognized in other comprehensive profits and losses related to the subsidiary are accounted for on the same basis as the Company's direct disposal of related assets or liabilities.

The unrealized gains and losses of downstream transactions between the Company and its subsidiaries shall be eliminated in the individual financial report. The gains and losses arising from the counter-current and side-current transactions between the Company and its subsidiaries are only recognized in individual financial reports within the scope that has nothing to do with the Company’s equity in the subsidiaries.

1. Investment in associates Affiliates refer to companies that the Company has significant influence over, but are not subsidiaries.

The Company invested in its associates using equity method.

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

Any excess of the cost of acquisition over the 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 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 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 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 company’s net investment in the associated company), that is, stop recognizing further losses. The 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 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 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

• 19 -

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 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 individual financial report only to the extent that the company has no relation to the equity of the associated company.

• (h) 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 Company shall estimate and review their useful lives, residual values, and depreciation method at the end of each reporting period, with the effect of any changes in estimates accounted for on a prospective basis.

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

• (i) 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 Company, with the effect of any changes in estimate being accounted for on a prospective basis. Intangible assets with uncertainty lives are presented as cost less accumulated impairment losses.

• 20 -

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.

• (j) Impairment of Property, Plant and Equipment, Right-of-use Assets, and Intangible Assets (besides goodwill)

• The 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 Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. Shared assets are allocated to individual cash-generating units for which a reasonable and consistent allocation basis can be identified.

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

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

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

• (k) Financial Instruments

Financial assets and financial liabilities are recognized on the balance sheet when the 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.

• 21 -

• 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 Company are financial assets measured at fair value through profit and loss, financial assets measured at amortized cost, and equity instrument investment measured at fair value through other comprehensive gains and losses.

  • A. Financial Assets Measured at Fair Value Through Profit and Loss Financial assets measured at fair value through profit and loss include mandatory fair value through profit and loss and financial assets designated as fair value through profit and loss. Mandatory financial assets measured at fair value through profit or loss include equity instrument investments that the amalgamating company has not specified to be measured at fair value through other comprehensive profit and loss, and debt instrument investments that are not classified as measured at amortized cost or measured at fair value through other comprehensive profit and loss.

    • Financial assets are designated at the time of initial recognition as measured at fair value through profit and loss, if the designation can eliminate or significantly reduce measurement or recognition inconsistencies.

    • Financial assets measured at fair value through profit and loss are the dividends and interests generated by fair value measurement, that are recognized in other income and interest income respectively, and the benefits or losses generated by the re-measurement are recognized in other income and loss. Please refer to Note TWENTY-SEVEN for the method of determining fair value.

B. Financial Assets at Amortized Cost

If the financial assets invested by the 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

• 22 -

measured by the total book amount determined by the effective interest method minus the amortized cost of any impairment loss, and any foreign currency exchange gains and losses are recognized as in profit and loss.

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

• a. For purchased or created credit-impaired financial assets, interest income is calculated by multiplying the effective interest rate after credit adjustment by the amortized cost of the financial assets.

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

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

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

• C. Investment in Equity Instruments Measured at Fair Value Through Other Comprehensive Income

During initial recognition, the 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.

• 23 -

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 Company were established unless the dividends clearly represent partial investment cost recovery.

• (2) Impairment Loss of Financial Assets and Contractual Assets

The 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.

The 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 Company only delists financial assets when the contractual rights from the cash flow of financial assets have lapsed, or the financial assets

• 24 -

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.

1. Financial Liabilities

2. (1) Subsequent Measurement

Except for the cases below, all financial liabilities are measured at amortized cost using the effective interest method: Financial Liabilities Measured at Fair Value Through Profit and Loss

Financial liabilities measured at fair value through profit and loss include held for trading and designated as fair value through profit and loss.

Interested derived from financial liabilities held for trading and designated as fair value through profit and loss are recognized as finance cost, other profits or losses arise from remeasurement are recognized in other profits and losses. Please refer to Note TWNETY-SEVEN for the method of determining the fair value.

• (2) Delisting of Financial Liabilities

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

3. Derivative Financial Instruments

Derivatives signed by the Company include forward foreign exchange contracts, interest rate exchanges and currency exchanges, which are used to manage the 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

• 25 -

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.

• (l) 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.

• (m) Income Recognition

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

Commodity Sales Revenue

Commodity sales revenue is generated from customers who have the right to determine prices and use the commodities and are responsible for resale, customers bear the consequences of commodity obsolescence. The 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.

• (n) Lease

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

1. The Company as Lessor

2. 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

• 26 -

lease period on a straight-line basis.

When the lease includes both land and building elements, the 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.

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

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

The right-of-use assets are separately expressed on the 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. If changes in the lease payment period or the index or rate used to determine lease payments result in changes in future lease payments, the company will re-measure the lease liability and adjust the right-of-use assets accordingly. However, if the book value of the right-of-use asset has been reduced to zero, then The remaining remeasured amount is recognized in profit and loss. For lease modifications that are not treated as separate leases, remeasurement of the lease liability due to the reduction in the scope of the

• 27 -

lease is to reduce the right-of-use asset, and to recognize the profit and loss of the partial or full termination of the lease; the re-measurement of the lease liability due to other modifications is to adjust the right-of-use asset. Lease liabilities are separately expressed on individual balance sheets.

The 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 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.

(o) Borrowing Cost

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

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

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

• (p) Government Subsidies

Government subsidies are recognized only when it is reasonably certain that the 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 company and has no future related costs, it shall be recognized in the profit and loss during the period when it can be received.

(q) Employee Benefits

1. 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.

1. 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.

2. 28 -

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.

• －

• (r) 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.

• (s) Treasury Stock

• When the Company buys back the company’s stock, it is reported at the cost of the buy-in. When disposing, the price difference generated by the treasury stock exchange is listed under the shareholder’s equity. The Company’s subsidiaries hold the company’s stocks, and they are treated as treasury stocks in accordance with the provisions of the International Financial Reporting Standards Bulletin No. 2 “Share Basic Benefits”.

The Company’s repurchase of the company’s stock is the Company’s repossession or purchase of its own shares within the governance of law. Before disposition or cancellation, the recovery or purchase cost is listed as a deduction of shareholders’ equity.

If the price of the treasury stock is higher than the book value, the difference is listed as capital reserve-treasury stock transaction; if the price of the treasury is lower than the book value, the difference will first offset the capital reserve generated by the transaction of the same type of treasury stock, such as if there is a deficiency, the retained surplus is debited.

• (t)

Income Tax

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

• Current Income Tax

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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.

1. Deferred Income Tax

2. 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 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 Company expects to recover or settle the carrying amount of its assets and liabilities on the balance sheet date.

1. Current and Deferred Income Tax

2. 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.

3. 30 -

5. Critical Accounting Judgments and Key Sources of Estimation and Uncertainty

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

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

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 $ 633 348,409 298,944 631,104 $ 1,279,090	Dec 31,2020
			$ 646 665,200 170,880 89,729 $ 926,455

As of December 31, 2021 and 2020, there were bank foreign currency time deposits of NT$89,052 and NT$113,920 thousand, respectively with a maturity period of more than 3 months, which were accounted for under other financial current assets. (Please refer to Note 10 ）

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 ） .

==> picture [425 x 27] intentionally omitted <==

7. 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	Dec 31,2021 $ 50,092	Dec 31,2020	Dec 31,2020
			$ 55,979

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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	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$ 7,810 thousand and a net profit of NT$26,566 thousand, respectively.

8 、 Notes and Accounts Receivable

Notes and Accounts Receivable
Notes receivable Measured by cost after amortization Total book value less：allowance for impairment loss Accounts receivable Measured by cost after amortization Total book value Less：allowance for impairment loss	Dec 31,2021 $ 89,806 ( 900) $ 88,906 $ 1,071,353 ( 7,751) $ 1,063,602	Dec 31,2020
	( (	( (	$ 33,470 300) $ 33,170 $ 1,307,996 6,932) $ 1,301,064

Accounts Receivable

In principle, the credit period of the 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 Company refers to past experience, considers the financial status of individual customers and their respective industries, competitive advantages and prospects, and categorizes individual customers into different risk assessment groups and according to the respective group, the loss rate is recognized as an allowance for impairment loss.

To reduce the credit risk, the management of the 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 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 believes that the credit risk of the Company has been significantly reduced.

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

Dec 31, 2021

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		Over121 days			Total
	(	0.5%~1% $ 879,175 6,612) $ 872,563 0～60days	(	0.5%~1% $ 161,595 1,169) $ 160,426 61～90days	0.5%~1% $ 103,320 ( 747) $ 102,573 91～120days		0.5%~1% $ 17,069 ( 123) $ 16,946 Over121 days		(	$ 1,161,159 8,651) $ 1,152,508 Total
	(	0.5%~1% $ 907,533 4,932) $ 902,601	(	0.5%~1% $ 227,883 1,208) $ 226,675	(	0.5%~1% $ 177,779 942) $ 176,837	(	0.5%~1% $ 28,271 150) $ 28,121	(	$ 1,341,466 7,232) $ 1,334,234

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

Opening balance Add：Recognized impairment loss in current period Less：Reversal impairment loss in current period Closing balance		2021 $ 7,232 1,419 - $ 8,651		2020
			(	$ 9,984 - 2,752) $ 7,232

9. Inventories

Raw materials Materials Raw materials in transit Processed goods Finished goods Inventory in transit Raw materials	Dec 31,2021 $ 712,875 76,139 301,560 884,485 828,361 3 285,049 $ 3,088,472	Dec 31,2020	Dec 31,2020
			$ 424,235 73,826 232,865 576,479 461,492 - 225,537 $ 1,994,434

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The inventory-related cost of goods sold in 2021 and 2020 were NT$11,212,329 thousand and NT$10,168,838 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$71,083 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.

1. Other financial assets - current

Other financial assets-current
Other Receivables－related parties（Note 29） Bank foreign currency time deposits with maturity more than 3 months（Note 6） Pledged deposit receipt（Note 6 and 30） Other	Dec 31,2021 $ 849,131 89,052 2,000 54,370 $ 994,553	Dec 31,2020
			$ 307,690 113,920 2,000 35,377 $ 458,987

11.	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 $ 810,698 $ 947,010	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 $ 810,698 $ 947,010	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 $ 810,698 $ 947,010	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 $ 810,698 $ 947,010
	Equity instrument investment measured at fair value through other comprehensive profits and losses - non-current Domestic listed stocks	Dec 31,2021 $ 810,698
				$ 947,010

The 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.

12. Investments Using Equity Method

vestments Using Equity Method
Invested subsidiaries Invested associates	Dec 31,2021 $ 1,409,746 2,606,991 $ 4,016,737	Dec 31,2020
			$ 1,391,588 2,588,021 $ 3,979,609

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(a) Invested Subsidiaries

Dec 31, 2021 Dec 31, 2020 Non-public listed (OTC) company In Talent Investments Limited $ 301,078 $ 298,896 Li Mao Investment Co., Ltd. 363,334 410,776 Hung Hsing Investment Co., Ltd. 278,857 310,106 Li Shing Investment Co., Ltd. 419,955 339,691 Libolon Energy Co., Ltd. 11,978 18,826 Eton Petrochemical Co., Ltd. 34,544 13,293 $ 1,409,746 $ 1,391,588

Companyname In Talent Investments Limited Li Mao Investment Co., Ltd. Hung Hsing Investment Co., Ltd. Li Shing Investment Co., Ltd. Libolon Energy Co., Ltd. Eton Petrochemical Co., Ltd.	% of equityand votingrights held	% of equityand votingrights held
	Dec 31,2021 100.00% 53.38% 53.02% 53.00% 70.00% 75.00%	Dec 31,2020
		100.00% 53.38% 53.02% 53.00% 70.00% 75.00%

For the disclosure of the acquisition of Libolon Energy Co., Ltd, please refer to the consolidated financial statements of 2021 in the Attached Note 25.

(b) Invested Associates

Significant Associate PT. INDONESIA LIBOLON FIBER SYSTEM Insignificant Associate	Dec 31,2021 $ 711,944 1,895,047 $ 2,606,991	Dec 31,2020	Dec 31,2020
			$ 752,312 1,835,709 $ 2,588,021

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Significant Associates

Significant Associates
Companyname PT. INDONESIA LIBOLON FIBER SYSTEM	% of equityand votingrights held
	Dec 31,2021 30%	Dec 31,2020
		30%

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 of Invested Company, Location... and Other Related Information" in attached Table 6

.

The associates’ first-tier fair value information in the public market is as follows ：

Companyname Rich Development Co., Ltd.	Dec 31,2021 $ 485,620	Dec 31,2020	Dec 31,2020
			$ 536,737

The 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 Company The 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 May 1 to Dec 31,2020
		(	$ 431,622 $ 35,566 10,401) $ 25,165

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Summarized Information on Each Insignificant Affiliates:

Company’s share Continuing business unit’s net profit for the year Other comprehensive income Total comprehensive income		2021 $ 52,991 35,080 $ 88,071		2020
				$ 25,655 142,322 $ 167,977

The 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 Company’s accountants for visa verification, but by other accountants.

13. Property, Plant and Equipment

Property, Plant and Equipment
Owned land Land improvement Building Machinery equipment Transportation Office equipment Other equipment Rental assets	Dec 31,2021 $ 1,847,871 9,128 1,537,429 1,585,395 17,833 4,348 287,478 176,244 $ 5,465,726	Dec 31,2020
			$ 1,746,786 8,691 1,597,900 1,776,975 24,317 4,822 340,236 18,466 $ 5,518,193

Cost Jan 1, 2020 balance Additions Disposals Account transfer Dec 31, 2020 balance Jan 1, 2021 balance Additions Disposals Account transfer Dec 31, 2021 balance Accumulated depreciation and impairmen Jan 1, 2020 balance Disposal Account transfer Depreciation Dec 31, 2020 balance Jan 1, 2021 balance Disposal Depreciation Dec 31, 2021 balance	Owned Land $ 1,746,786 - - - $ 1,746,786 $ 1,746,786 - - 101,085 $ 1,847,871 $ - - - - $ - $ - - - $ -		Land Improvement Building Machinery Equipment Transportation Office Equipment Other Equipment	Lease Assets	Unfinished Construction Total
		$ 11,166 $ 3,050,631 $ 10,292,188 $ 104,695 $ 44,161 $ 2,364,048 $ 14,686 - 2,903 8,566 2,279 - 11,648 - - ( 403 ) ( 35,851 ) ( 125 ) ( 5,543 ) ( 7,518 ) - - 12,246 35,558 - 4,468 33,121 - $ 11,166 $ 3,065,377 $ 10,300,461 $ 106,849 $ 43,086 $ 2,401,299 $ 14,686 $ 11,166 $ 3,065,377 $ 10,300,461 $ 106,849 $ 43,086 $ 2,401,299 $ 14,686 282 1,520 58,476 2,767 1,293 16,809 - - ( 1,448 ) ( 150,390 ) ( 2,303 ) ( 265 ) ( 11,717 ) - 2,050 33,952 157,484 - - 6,269 - $ 13,498 $ 3,099,401 $ 10,366,031 $ 107,313 $ 44,114 $ 2,412,660 $ 14,686 ( $ 677 ) ( $ 1,370,916 ) ( $ 8,132,923 ) ( $ 71,998 ) ( $ 41,906 ) ( $ 1,991,638 ) ( $ 14,452 ) - 403 35,515 77 5,543 7,518 - - ( 467 ) 467 - - - - ( 1,798) ( 96,497) ( 426,545) ( 10,611) ( 1,901) ( 76,943) ( 234) ($ 2,475) ($ 1,467,477) ($ 8,523,486) ($ 82,532) ($ 38,264) ($ 2,061,063) ($ 14,686) ( $ 2,475 ) ( $ 1,467,477 ) ( $ 8,523,486 ) ( $ 82,532 ) ( $ 38,264 ) ( $ 2,061,063 ) ( $ 14,686 ) - 875 143,040 2,291 266 11,519 - ( 1,895) ( 95,370) ( 400,190) ( 9,239) ( 1,768) ( 75,638) - ($ 4,370) ($ 1,561,972) ($ 8,780,636) ($ 89,480) ($ 39,766) ($ 2,125,182) ($ 14,686)			$ 3,112 $ 17,631,473 100,747 126,143 - ( 49,440 ) ( 85,393) - $ 18,466 $ 17,708,176 $ 18,466 $ 17,708,176 458,618 539,765 - ( 166,123 ) ( 300,840) - $ 176,244 $ 18,081,818 $ - ( $ 11,624,510 ) - 49,056 - - - ( 614,529) $ - ($ 12,189,983) $ - ( $ 12,189,983 ) - 157,991 - ( 584,100) $ - ($ 12,616,092)

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

Land improvement 5 years House and building Repair and maintenance works 2 to 10 years New ancillary building 10 to 20 years

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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 Company sets pledge as loan guarantee, the details are as follows (please refer to Note 16, 18, and 30) ：

guarantee, the details are as follows (	please refer to Note 16, 18,	and 30)：	and 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

14. Lease Agreement (a) Right of use assets Right of use assets carrying amount Land Additions to right of use assets Depreciation of right of use assets Land (b) Lease Liabilities Lease liabilities carrying amount Current Non-current	Dec 31,2021 $ 538 2021 $ - $ 179 Dec 31,2021 $ 177 $ 362	Dec 31,2020	Dec 31,2020
			$ 720 2020
		$ - $ 179 Dec 31,2020
			$ 107 $ 541

• 38 -

Lease liabilities’ discount rate range as follows ：

Land (c) Other information on lease Short-term lease expenses Total of cash outflow from leasing	Dec 31,2021 1.51461% 2021 $ 31,472 $ 31,583	Dec 31,2020	Dec 31,2020
			1.51461% 2020
			$ 33,880 $ 34,184

15. Other Intangible Assets

Other Intangible Assets
Cost Jan 1, 2020 balance Purchased this period Reduction this period Account transfer Dec 31, 2020 balance Accumulated amortization and impairment Jan 1, 2020 balance Amortized this period Reduction this period Dec 31, 2020 balance Dec 31, 2020 net 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 $ 24,281 3,193 ( 9,024 ) 1,637 $ 20,087 ( $ 16,104 ) ( 5,207 ) 9,024 ($ 12,287) $ 7,800 $ 20,087 1,598 ( 7,265) $ 14,420 ( $ 12,287 ) ( 4,079 ) 7,265 ($ 9,101) $ 5,319	Other intangible assets $ 11,118 - ( 5,902 ) - $ 5,216 ( $ 9,665 ) ( 1,198 ) 5,902 ($ 4,961) $ 255 $ 5,216 48 ( 3,675) $ 1,589 ( $ 4,961 ) ( 270 ) 3,675 ($ 1,556) $ 33	Total
			$ 35,399 3,193 ( 14,926 ) 1,637 $ 25,303 ( $ 25,769 ) ( 6,405 ) 14,926 ($ 17,248) $ 8,055 $ 25,303 1,646 ( 10,940) $ 16,009 ( $ 17,248 ) ( 4,349 ) 10,940 ($ 10,657) $ 5,352

• 39 -

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

years ：

ars：
Software costs Other intangible assets rrowing Short-term loan Unsecured loans Credit loan Secured loans Bank loan	3years 3years Dec 31,2021 Dec 31,2020 $ 2,380,000 $ 1,924,000 415,000 120,000 $ 2,795,000 $ 2,044,000
			$ 1,924,000 120,000 $ 2,044,000

1. Borrowing

2. (a) Short-term loan

3. 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.

4. The secured loan was secured by property, plant, equipment as of December 31,

2021 and 2020 (please refer to Note 13 and 30).

• (b) Shot-term Note Receivable— Commercial Promissory Receivable

Guarantee Agency Unsecured China Bills, Ta Ching Bills, International Bills, Mega Bills, Grand Bill and Cooperative Bills	Dec 31,2021	Dec 31,2021
	Interests 0.39%～0.68%		Amount
			$ 800,000

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

• 40 -

17. 18.	Other Account Payable Advance payment payable Other notes payable Year-end bonus payable Salary payable Water and electricity bill payable Processed fee payable Purchase of equipment payable Other payables Long-Term 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）	Dec 31,2021 $ 826,367 64,103 117,565 51,698 35,445 32,098 16,856 289,213 $ 1,433,345 Interest Dec 31,2021 1.1364% $ - 1.2104% -	Dec 31,2021 $ 826,367 64,103 117,565 51,698 35,445 32,098 16,856 289,213 $ 1,433,345 Interest Dec 31,2021 1.1364% $ - 1.2104% -		Dec 31,2020	Dec 31,2020
						$ 298,704 91,690 69,803 48,396 32,922 30,437 21,696 158,955 $ 752,603 Dec 31,2020
			$ - -			$ 560,000 395,000

（ continue in next page ）

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（continue from last page） 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 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） 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) 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. 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. 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) （continue in next page）	Interest 1.1575% 1.4% 1.18978% 1.4% 1.19056% 1.18656%	Dec 31,2021 1,000,000 - - $ 125,000 375,000 -	Dec 31,2020
			- 200,000 375,000 $ - - 500,000

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（ continue from last page ）

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. 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. Less：Partially transferred to current liabilities due within one year	Interest 1.19078% 0.8306%	Dec 31,2021 175,000 150,000 1,825,000 ( 31,250) $ 1,793,750	Dec 31,2020	Dec 31,2020
		(	(	- - 2,030,000 155,000) $ 1,875,000

• 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 13 and 30.

19. Retirement Benefit Plans

• (a) Defined contribution plans

• The pension system of the "Labor Pension Act" applicable to the Company 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.

• (b) Defined benefit plans

• The Company 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 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

• 43 -

Taiwan. Before the end of each year, the 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 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 Company does not have any right to intervene in the investments of the Funds.

Amounts recognized in respect of these defined benefit plans included in the individual balance sheet were as follows ：

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	Present value of defined benefit obligation $ 366,112 3,095 2,746 5,841 $ - 10,183 ( 16,044) ( 5,861) - ( 13,553) $ 352,539	Fair value of plan assets ($ 103,413) - ( 863) ( 863) ( $ 3,102 ) - - ( 3,102) ( 22,909 ) 13,553 ($ 116,734)	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

• 44 -

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 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 $ 352,539 2,639 1,763 4,402 - 9,697 ( 5,205 ) 26,135 30,627 - ( 9,098) $ 378,470	Fair value of plan assets ($ 116,734) - ( 626) ( 626) ( 1,364 ) - - - ( 1,364) ( 12,242 ) 9,098 ($ 121,868)	Net defined benefit liability (asset)
			$ 235,805 2,639 1,137 3,776 ( 1,364 ) 9,697 ( 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 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.

• 45 -

• Interest risk: The decrease in the interest rate of corporate bonds will increase the present value of the defined benefit liabilities, however, the debt investment returns of the planned assets will also increase accordingly. The effects of the two on the net defined benefit liabilities will partially offset the effect.

• 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 Company and the present value of the defined benefit obligation are actuarial calculations performed by qualified actuaries. The key assumptions on the measurement date are as follows:

Discount rate Future salary increase rate	Dec 31,2021 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

• 46 -

20. Equity

• (a) Shares

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
				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.

• (b) Capital reserve

Capital reserve
Using equity method to recognize the capital reserve of affiliates Recognition of changes in ownership and equity of subsidiaries 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 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 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 if the statutory surplus reserve has reached the actual income of the total amount of capital, it 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

• 47 -

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 Company.

1. 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 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 company. The legal capital reserve can be used to make up for losses. When the 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) Treasury stock

1. The changes in shares held by the 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 82,948,106 8,000,000 90,948,106		Increase - - - 2020		Decrease 15,919,000 3,584,000 19,503,000		Shares, end of year
							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 82,948,106 8,000,000 90,948,106		Increase - - -		Decrease - - -		Shares, end of year
							82,948,106 8,000,000 90,948,106

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• The purpose of holding the Company’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

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

2. 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.

3. The Company holds treasury stocks, which shall not be pledged in accordance with the Securities and Exchange Act, nor shall it enjoy the rights of dividend distribution and voting rights. In addition, subsidiaries holding the 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 $ 11,770,100 490,311 8,556 $ 12,268,967		2020
				$ 9,907,364 458,368 4,043 $ 10,369,775

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22.	Continuing operation unit net profit (a) Interest income 2021 Bank deposits $ 3,460 Interests on loan to related parties 8,136 $ 11,596 (b)Other income 2021 Lease income Lease income of operations $ 14,688 Dividend income 842 Other（Note 32） 29,390 $ 44,920 (c) Other gains and losses 2021 Gain (loss) on disposal of property, plant and equipment $ 6,209 Net exchange difference ( 59,890 ) Gain (loss) on financial assets and liability at FVTPL, net ( 7,810 ) Gain on disposal of investment using the equity method - Other losses ( 1,365) ($ 62,856) (d) Financial cost 2021 Interests of bank loan $ 39,286 Interest of loans from related parties 1,974 Interest of lease liability 8 Financial expenses 1,535 $ 42,803 Information about interest capitalization is as follows：		2020
			$ 25,893 5,636 $ 31,529 2020
			$ 13,314 1,555 107,125 $ 121,994 2020
		$ 668 ( 333,985 ) 26,566 51 ( 2,197) ($ 308,897) 2020
			$ 52,786 1,873 10 3,035 $ 57,704

Interest capitalization amount Interest capitalization rate	2021 $ 3,385 1.1427%～ 1.21107%	2020
		$ 1,415 1.19898%～ 1.51968%

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(e)Depreciation and amortization

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 Categorized amortization expenses by function Operating cost Operating expenses		2021 $ 584,100 179 4,349 66,928 $ 655,556 $ 573,265 11,014 $ 584,279 $ 69,483 1,794 $ 71,277		2020
				$ 614,529 179 6,405 71,701 $ 692,814 $ 603,430 11,278 $ 614,708 $ 75,687 2,419 $ 78,106

(f) Expenses for employee benefits

Salary expenses Labor and health insurance expenses Retirement benefits Defined contribution plan Defined benefit plan （Note 19） Compensation to directors Other employee benefit Total expenses of employee benefit				2021		Total $ 764,161 77,489 22,799 3,776 26,575 4,349 82,347 $ 954,921			2020
		Operating cost $ 631,559 65,710 17,957 3,111 21,068 - 72,230 $ 790,567		Operating expenses $ 132,602 11,779 4,842 665 5,507 4,349 10,117 $ 164,354				Operating cost $ 537,882 57,964 17,675 4,055 21,730 - 57,744 $ 675,320	Operating expenses $ 114,105 11,160 4,948 923 5,871 3,195 8,640 $ 142,971		Total
											$ 651,987 69,124 22,623 4,978 27,601 3,195 66,384 $ 818,291

• (g) Employees’ and Boards’ remunerations According to the provisions of the Company’s policy articles, the 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 ：

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Estimation Ratio Compensation to employees Compensation to directors Amount 2021 Cash Stock Compensation to employees $ 749 $ - Compensation to directors 749 -		2021	2021
		2% 2% 2020
	Cash		Stock $ - -
	$ - -

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 Company’s 2021 and 2020 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 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 $ 778 378 1,156 54,770 1 54,771 $ 55,927		2020
			$ 75 822 897 ( 122,375 ) ( 319) (122,694) ($ 121,797)

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

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(b)	2021 Income tax expense (profit) atutory tax rate for net profit (loss) before tax $ 65,016 Tax effect of adjusting items Investment (profit) loss recognized by the equity method ( 9,407 ) Financial asset evaluation benefits 1,563 Gain on disposal of investment - Tax-exempt dividend income ( 168 ) Tax-exempt subsidy income - Other ( 2,233 ) Non-deductible amount of tax-exempt dividend income loss - The income basic tax 778 Adjustment on income tax expenses in prior year 378 Income tax expense (profit) recognized in profit and loss $ 55,927 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 difference - 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 Sales discount preparation 1,035 Loss deduction 215,738 Bonus for no-leave 4,566 Unrealized gross loss 14 Other 541 $ 311,310	2020	2020
		( $ 106,761 ) ( 7,848 ) 105 ( 10 ) ( 311 ) ( 16,434 ) 274 8,685 - 503 ($ 121,797) Dec 31,2020
			$ 28,536 10,289 16,415 - 8,626 17,892 4,074 275,736 3,689 93 541 $ 365,891

• 53 -

Deferred income tax liability Unrealized exchange benefits Land appreciation tax preparation Current tax liabilities Current tax liabilities Income tax payable Less：Withholding tax in current period	Dec 31,2021 $ 190 146,650 $ 146,840 Dec 31,2021 $ 778 ( 778) $ -	Dec 31,2020	Dec 31,2020
		$ - 146,650 $ 146,650 Dec 31,2020
	(		$ - - $ -

• (c) Current tax liabilities

• (d) Unlisted loss deduction information

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

	Balance yet deducted $ 353,495 722,523 $ 1,076,018	Year due
		2029 2030

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

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	A m o u n t （n	A m o u n t （n	u	m e r a t o r ） After tax $ 269,155 - $ 269,155 $ 412,009)	Share （denominator） （thousand share） 870,194 73 870,267 862,390	Profit (Loss) per	share（NTD）	share（NTD）
		Before tax $ 325,082 - $ 325,082 $ 533,806)				Before tax $ 0.37 $ 0.37 ($ 0.62)		After tax
	(		(			(	(	$ 0.31 $ 0.31 $ 0.48)

• 54 -

If the 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 Acquisition of subsidiary gain ownership

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

The acquisition of Libolon Energy Co., Ltd. is to expand the company's business of buying and selling renewable energy self-powered generation equipment. For the explanation of obtaining Libolon Energy Co., Ltd., please refer to Note 25of the Company's 2021Consolidated Financial Statements.

26 Equity transactions with non-controlling interests

In September 2020, the 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 Company, which was treated as an equity transaction. For the explanation of transactions of Libolon Energy Co., Ltd., please refer to Note 25 of the Company's 2021Consolidated Financial Statements.

27. Capital risk management

The 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 Company has not changed.

The 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 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
		Level 1			Level 2			Level 3			Total
Financial assets measured at
FVTPL
Financial assets
Listed (OTC) stocks	$	50,092		$		-	$		-	$	50,092
Not listed（OTC）
common stocks			-			-		9,472			9,472
Not listed abroad（OTC）
common stocks			-			-		430			430
	$	50,092		$		-	$	9,902		$	59,994
Financial assets measured at
fair value through other
comprehensive income
Domestic listed stocks	$	810,698		$		-	$		-	$	810,698
Dec 31, 2020
	第	一	級	第	二	級	第	三	級	合		計
Financial assets measured at
FVTPL
Financial assets
Listed (OTC) stocks	$	55,979		$		-	$		-	$	55,979
Not listed（OTC）
common stocks			-			-		11,395			11,395
Not listed abroad（OTC）
common stocks			-			-		430			430
	$	55,979		$		-	$	11,825		$	67,804
Financial assets measured at
fair value through other
comprehensive income
Domestic listed stocks	$	947,010		$		-	$		-	$	947,010

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

(c) Valuation techniques and assumptions used in level 2 fair value measurement ： Type of financial instruments Evaluation technology and input value － Derived instrument Discounted cash flow method: Estimate the future exchange contract cash flow based on the exchange rate calculated in the observable exchange contract at the end of the period, and discount it separately at a rate that can reflect the credit risk of each counterparty.

• 56 -

• (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

ypes 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 $ 59,994 4,713,589 810,698 8,295,116	Dec 31,2020
		$ 67,804 3,981,045 947,010 6,933,162

• Note 1 ： The balance includes cash and cash equivalents, notes and accounts receivable and other financial assets measured at amortized cost.

• Note 2 ： The balance includes short-term loans, short-term bills payable, bills payable, accounts payable, other payables, advance loans to related parties, and financial liabilities derived from long-term loans measured at amortized cost.

• (f) Derivative financial products

The realized net profit from the operation of derivative financial products in 2020 was

NT$ 32,117 thousand, which was accounted for under other interests and losses.

• (g) Financial risk management objectives and policies The main financial instruments of the Company include equity and debt investments, borrowings, lease liabilities, accounts receivable and accounts payable, etc. The financial management department of the Company provides services for various business units, coordinates access to domestic and international financial markets, and supervises and manages the financial risks related to the operations of the 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.

• 57 -

The 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 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 Company did not trade financial instruments (including derivative financial instruments) for speculative purposes.

1. Market risk

The main financial risk of the 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 Company's risk exposure related to financial instrument market risks and its management and measurement methods have not changed.

Sensitivity analysis

The Company is mainly influenced by the USD exchange rate fluctuation.

The following table details the sensitivity analysis of the 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 Company. Sensitivity analysis includes only monetary items in foreign currencies in circulation, and their conversion at the end of the period is adjusted with a 0.5% change in exchange rate. The positive numbers in the following table represent the amount of increase in net profit before tax when the New Taiwan Dollar depreciates 0.5% relative to the relevant currencies; when the New Taiwan Dollar appreciates 0.5% relative to the relevant currencies, its impact on the net profit before tax will be the same negative number of the amount.

number of the amount.
0.5% difference in the exchange rate of USD profit and loss	Dec 31,2021 $ 9,319	Dec 31,2020
		$ 8,575

2. Credit Risk

Credit risk refers to the risk of the company's financial losses caused by the counterparty's default of contract obligations. In order to reduce credit risk, the

• 58 -

Company has the right to request for collateral or other guarantees from major transaction partners. Accordingly, the management of the Company believes that the credit risk has been significantly reduced.

3. Liquidity risk

The Company manages and maintains sufficient cash and cash equivalents to support the company's operations and reduce the impact of cash flow fluctuations. The management of the 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 Company. As of December 31, 2021 and 2020, the unutilized short-term bank financing lines of the Company were NT$11,324,018 thousand and NT$12,440,721 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 Company and is compiled based on the undiscounted cash flows of financial liabilities (including principal and estimated interest). Therefore, the bank loans that the 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 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 $ 2,795,000 800,000 123,930 1,249,778 1,220,408 281,000 183 5,174 31,250 1,218 $ 6,507,941		1 to 2years $ - - - - - - 183 - 487,500 - $ 487,683		Over 2years
						$ - - - - - - 183 - 1,306,250 - $ 1,306,433

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Dec 31, 2020

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 $ 2,044,000 1,120,000 63,470 845,498 600,194 230,000 115 20,372 155,000 705 $ 5,079,354		1 to 2years $ - - - - - - 183 - 1,500,000 - $ 1,500,183		Over 2years
						$ - - - - - - 366 - 375,000 - $ 375,366

29. Trading with Related Parties

Except for the other notes on the disclosures, the transactions between the Company and other related parties are as follows.

• (a) Related parties and association

Related parties

LEALEA ENTERPRISE CO. LTD. LI MAO INVESTMENT CO. LTD. LI SHING INVESTMENT CO. LTD. HUNG HSING INVESTMENT CO. LTD.

IN TALENT INVESTMENTS LIMITED LIBOLON ENERGY CO. LTD.

ETON PETROCHEMICAL CO.LTD. ETON PETROCHEMICAL INTERNATIONAL CO. LTD. LIBOLON (SHANGHAI) INTERNATIONAL TRADING CO., LTD.

FU LI TRANSPORTAION CO. LEA JIE ENERGY CO. LTD. LIBOLON ENTERPRISE CO. LTD.

Association with the Company Investor with significant influence Subsidiary Subsidiary Subsidiary

Subsidiary

Associated company originally, subsidiary since July 2020 Subsidiary Sub-subsidiary

Sub-subsidiary

Associated company Associated company Associated company

• （ continue in next page ）

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（ continue from last page ）

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

(b) Operating Income

Operating Income
Accountingitem Sales revenue	Type of associate／name Investor with significant influence Subsidiary Sub-subsidiary LIBOLON（Shanghai） Other Associated company Other		2021 $ 609,434 5,918 595,272 43 559,800 23,952 $ 1,794,419		2020
					$ 574,043 1,864 1,062,739 - 338,261 20,623 $ 1,997,530

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

(c) Purchases

Purchases
Type of associate Investor with significant influence Subsidiary Sub-subsidiary Associated company Other		2021 $ 705,518 - 799 20,295 - $ 726,612		2020
				$ 486,090 892 - 15,223 29,417 $ 531,622

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

Accountingitem Note receivable Accounts receivable Other receivable	Type of associate/name Dec 31,2021 Investor with significant influence Lealea $ 58,645 Associated company Li Ling. 134,181 Other 80 192,906 Investor with significant influence 74,477 Subsidiary 571 Sub-subsidiary LIBOLON（Shanghai） 61,928 Other 45 Associated company 55,133 Other - 192,154 Subsidiary Eton Petrochemical Co. $ 748,266 Other 132 Sub-subsidiary 78,047 Investor with significant influence 19,743 Associated company 2,942 Other 1 849,131 $ 1,234,191	Dec 31,2020	Dec 31,2020
			$ - 52,264 - 52,264 89,732 472 451,347 - 68,443 1,609 611,603 $ 298,572 - 7,232 1,886 - 307,690 $ 971,557

No guarantee is received for the accounts receivable from related parties. No allowance for losses is provided for accounts receivable from related parties in 2019 and 2020. The collection and payment deadlines for the Company and related parties, except that Libolon (Shanghai)’s payment term is 180 days, 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	Type of associate/name Investor with significant influence Lealea Associated company Investor with significant influence Subsidiary Associated company	Dec 31,2021 $ 81,054 4,506 85,560 103,069 - 7,515 110,584	Dec 31,2020	Dec 31,2020
				$ 6,579 2,126 8,705 53,739 306 2,406 56,451

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Accountingitem Payable for purchase of equipment	Type of associate/name Investor with significant influence Associated company	Dec 31,2021 - 5,213 $ 201,357	Dec 31,2020	Dec 31,2020
				315 - $ 65,471

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		2020
		$ 12,321 - $ 12,321			$ 5,703 - $ 5,703		$ - 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 Type of associate/name Accountingitem Investor with significant influence Investment using equity method			Acquisitionprice	Acquisitionprice	Acquisitionprice	Acquisitionprice
				2021	Trade to			2020
				$ - 133,047 10,048 $ 143,095 Shares traded 55,000 shares			$	439 - 4,629 5,068 Acquisition price
							$
					Libolon Energy Co. Ltd.			$ 550

(i) Acquisition of other assets

Acquisition price

Type of associate Associated company	Accountingitem Other intangible assets – computer software		2021 $ 1,458		2020
					$ 2,866

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(j) Advanced loan receivable from related parties

Subsidiary In Talent Investments Limited Eton Petrochemical Sub-subsidiary Eton Petrochemical international Associated company PT. INDONESIA LIBOLON FIBER SYSTEM Subsidiary In Talent Investments Limited Eton Petrochemical Associated company PT. INDONESIA LIBOLON FIBER SYSTEM			Dec 31,2021
	Highest balance $ 290,566 569,927 199,150 768,075	Balance, end ofyear $ - 569,927 - 332,160 $ 902,087	Interest range（％） 1.42565~1.47000 1.39022~1.52255 1.39022~1.52255 1.40630~3.19860 Dec 31,2020		Interest income		Interest receivable
					$ 353 2,955 16 4,812 $ 8,136		$ - 578 - 402 $ 980
	Highest balance $ 290,566 34,576 728,818	Balance, end ofyear $ 286,366 26,163 284,800 $ 597,329	Interest range（％） 1.42565~1.47000 1.42565~1.47000 1.43044~3.19860		Interest income		Interest receivable
					$ 1,089 9 4,538 $ 5,636		$ 286 5 356 $ 647

(k) Loan from related party

Dec 31, 2021

			Dec 31,2021
Subsidiary Li Mao Investment Li Shing Investment Hung Hsing Investment Associated company Li Hao Investment Li Zan Investment	Highest balance $ 57,000 75,000 68,000 71,000 42,000	Balance, end of year $ 25,000 75,000 68,000 71,000 42,000 $ 281,000	Interest range（％） 0.80514~0.86228 0.80514~0.86228 0.80514~0.86228 0.76719~0.81914 0.76719~0.81914		Interest expense $ 259 503 449 491 272 $ 1,974		Interest payable
							$ 17 52 47 49 29 $ 194

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Subsidiary Li Mao Investment Li Shing Investment Hung Hsing Investment Associated company Li Hao Investment Li Zan Investment			Dec 31,2020
	Highest balance $ 80,000 65,000 60,000 75,000 45,000	Balance, end of year $ 57,000 45,000 43,000 55,000 30,000 $ 230,000	Interest range（％） 0.82040~0.91554 0.82040~0.91554 0.82040~0.91554 0.76715~0.90479 0.76715~0.90479		Interest expense $ 476 377 358 424 238 $ 1,873		Interest payable
							$ 40 31 30 36 20 $ 157

The borrowing interest rate of the Company's loan from related parties is equivalent to the market interest rate. Loans from affiliates and other related parties are all credit loans.

(l) Other

Other
Purchases-freight Associated company Export expense Associated company Sale－freight Investors with significant influence Rental income Investors with significant influence Lealea Subsidiary Associated company Lealea Technology Other Other		2021 $ 30,143 2021 $ 15,257 2021 $ 199 2021 $ 6,936 610 4,172 1,775 20 $ 13,513		2020
				$ 28,261 2020
				$ 22,549 2020
				$ - 2020
				$ 6,694 155 4,106 1,080 10 $ 12,045

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

• 65 -

Other income Investors with significant influence Lealea Subsidiary Associated company Li Ling Other Other Lease expense Investors with significant influence Lealea Associated company Rich Development		2021 $ 31,046 1 4,179 482 - $ 35,708 2021 $ 25,443 5,301 $ 30,744		2020
				$ 18,989 2 2,950 741 56 $ 22,738 2020
				$ 28,183 5,011 $ 33,194

The rent paid by the 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 $ 24,377 2021 $ 96,159 2021 $ 610 2021 $ 914 2021 $ 163,795		2020
				$ 24,610 2020
				$ 92,425 2020
				$ 2,065 2020
				$ 914 2020
				$ 104,570

• 66 -

• (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 ofassociate 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 Company have been provided as collateral for financial institutions.

institutions.
Pledged deposit receipt (recognized as other financial assets –current)（Note 6 and 10） Property, plant and equipment （Note 13）	Dec 31,2021 $ 2,000 2,976,190 $ 2,978,190	Dec 31,2020
			$ 2,000 3,978,909 $ 3,980,909

31. Significant contingent liabilities and unrecognized commitments

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

• 67 -

On December 31, 2021 and 2020, the Company still has issued and unused letters of credit. The details are as follows ：

Unit ： foreign currency thousand

USD EUR JPY NTD	Dec 31,2021 $ 88,854 1,170 253,862 371,293	Dec 31,2020
		$ 66,080 - 503,930 290,367

1. Other matters

   • The 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:

2. (a) Adjust operational strategies In addition to reducing planned production during the period of the Covid-19 spread, the 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.

3. (b) Fund raising strategies No major fund-raising activity has been implemented due to the impact of the Covid-19 pandemic.

4. (c) Government relief grants

The 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 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.

1. 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 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:

2. 68 -

Foreign currency in yuan ／ NTD thousand

Financial assets Currency items USD RMB Non currency items Financial assets measured at FVMTPL- non-current USD Investment using equity method IDR Financial liabilities Currency items USD RMB Financial assets Currency items USD RMB Non currency items Financial assets measured at FVMTPL- non-current USD Investment using equity method RMB IDR		Dec 31,2021
	Foreign currency $ 125,777,205 21,025,085 96,149 252,923,385,742 58,441,306 169,879	Exchange rate 27.68 （USD：NTD） 4.3440 （RMB：NTD） 27.68 （USD：NTD） 0.0019399 （IDR：NTD） 27.68 （USD：NTD） 4.3440 （RMB：NTD） Dec 31,2020	Carryingamount
			$ 3,481,513 91,333 2,661 490,646 1,617,655 738
	Foreign currency $ 97,994,497 20,585,960 96,149 68,265,018 246,819,202,615	Exchange rate 28.48 （USD：NTD） 4.3770 （RMB：NTD） 28.48 （USD：NTD） 4.3770 （RMB：NTD） 0.0020191 （IDR：NTD）	Carryingamount
			$ 2,790,883 90,105 2,738 298,796 498,353

• 69 -

Financial liabilities Currency items USD RMB		Dec 31,2020
	Foreign currency 37,773,605 355,788	Exchange rate 28.48 （USD：NTD） 4.3770 （RMB：NTD）	Carryingamount
			1,075,792 1,557

The Company’s unrealized foreign currency exchange gain and losses in 2021 and 2020 were NT$950 thousand and NT$82,073 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 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, affiliates 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 ）

• 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.

• Invested company’s information. （ Attached table 6 ）

• (b) Reinvestment business related information ： NA

• (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 7)

• 70 -

• 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 8)

  • (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 9)

35. Segment Information

The company has disclosed segment information in the consolidated financial report, and this individual financial report does not disclose relevant information separately.

• 71 -

Li Peng Enterprise Co. Ltd.

Reinvestment company funds to lend to others

202 1

								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		Financing Limits for Each Borrowing Company （note 7）	Financing Company’s Total Financing Amount Limits （note 7）
													名 稱	價 值
0	Li Peng Enterprise Co., Ltd.	PT INDONESIA LIBOLON FIBER SYSTEM Eton Petrochemical Co.,Ltd. In Talent Investments Limited Eton Petrochemical International Co., Ltd.	Loan to related parties Loan to related parties Loan to related parties Loan to related parties	Yes Yes Yes Yes	$ 910,000 950,000 800,000 600,000	$ 910,000 900,000 - 600,000	$ 332,160 569,927 - -	1.40630~ 3.19860 1.39022~ 1.52255 1.42565~ 1.47 1.39022~ 1.52255	2 2 2 2	$ - - -	營運週轉 營運週轉 營運週轉 營運週轉	$ - - - -	- - - -	$ - - - -	$ 965,005 965,005 965,005 965,005	$ 3,860,020 3,860,020 3,860,020 3,860,020

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.

• 72 -

202 1

Unit ： NTD thousand

Li Peng Enterprise Co. Ltd

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:

1. The Company is "0".

2. The subsidiaries are numbered in order starting from "1".

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

1. A company with which it does business.

2. A company in which the public company directly and indirectly holds more than 50 percent of the voting shares.

3. A company that directly and indirectly holds more than 50 percent of the voting shares in the public company.

4. A company in which the public company holds, directly or indirectly, 90% or more of the voting shares.

5. 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.

6. A company that all capital contributing shareholders make endorsements/ guarantees for their jointly invested company in proportion to their shareholding percentages.

7. 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.

8. 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.

9. Not e 4 ： Maximum outstanding endorsement/ guarantee amount in the current year.

10. 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.

• 73 -

Li Peng Enterprise Co. Ltd.

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 - - - - -

• 74 -

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 affiliates, please refer to attached table 6.

• 75 -

Unit ： NTD thousand

Li Peng Enterprise Co. Ltd

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

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.

• 76 -

Li Peng Enterprise Co. Ltd

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.

• 77 -

Li Peng Enterprise Co. Ltd.

Names, Locations, And Related Information of Investees

Jan 1 to Dec 31, 2021

Attached Table 6

Unit ： NTD thousand

Buyer (Seller)	Related party （Note 1、2）	Location	Main business and products	Original inves	tment amount	Balanc	e at the end of	period	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. 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.	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	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	$ 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	$ 65,893 415,715 401,449 415,280 363,629 329,212 40,408 20,000 492,829 28,000 90,000 21,000 757,965 9,000	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	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	$ 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	$ 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	$ 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.

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.

• 78 -

• (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 7 and 8 for relevant information of China investee companies.

• 79 -

Li Peng Enterprise Co., Ltd.

Information on investment in China

Jan 1 to Dec 31, 2021

Attached Table 7

Unit ： NTD thousand, original currency in yuan

Related party in China	Main business	Paid-in capital	Investment method	Beginning of the period Cumulative investment amount remitted from Taiwan	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	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.

• 80 -

Li Peng Enterprise Co., Ltd.

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 8

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.

• 81 -

Li Peng Enterprise Co. Ltd.

Information of main shareholder

Dec 31, 2021

Attached Table 9

Main Shareholders	Share	Share
	Shares held	Shares held
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 financial report and the actual number of shares delivered without registration may be different due to various calculation bases.

• Note 2: The information above is that shareholders deliver shares to the trust, it is disclosed in individual accounts by the trustee who opened the trust account by the trustee. As for the shareholder's declaration of insider's equity holding more than 10% of the shares in accordance with the Securities and Exchange Act, his shareholding includes his own shareholding plus the shares delivered to the trust and the right to use the trust property, etc., please refer to the public information for information on insider's equity declaration observatory site.

• 82 -

§DIRECTORY OF IMPORTANT ACCOUNTING ITEMS§

ITEM List of assets, liabilities and equity items List of cash and cash equivalents List of Financial assets measured at FVTPL-current List of notes receivable List of notes receivable- related parties List of accounts receivable List of accounts receivable－related parties List of inventories List of advance payments List of other financial assets－current List of financial assets measured at FVTOCI－non-current changes List of financial assets measured at FVTPL－non-current changes List of investments using equity method List of changes to property, plant and equipment List of changes in accumulated depreciation of property, plant and equipment List of changes to other intangible assets List of deferred tax assets List of changes in right-of-use assets List of short-term loan List of short-term corporate bonds payable List of financial liabilities measured at FVTPL－current List of notes payable List of notes payable－related parties List of accounts payable List of accounts payable－related parties List of other payable List of long-term loan due in a year List of other current liabilities List of long-term loan List of deferred tax liabilities List of profit and loss List of operating income List of operating cost List of sales expenses List of management expenses List of research and development expenses List of other income List of other profit and loss Employee benefits, depreciation, depletion and amortization expenses incurred in the current period Summary Table

NO./NOTE 84 85 86 87 88 89 90 91 92 93 94 95 Note 13 Note 13 Note 15 Note 23 96 97 98 - 99 100 101 102 103 104 105 106 Note 23 107 108～109 110 111 112 Note 22 Note 22 113

• 83 -

Li Peng Enterprise Co. Ltd.

List of Cash and Cash Equivalents

Dec 31, 2021

List 1 Unit ： NTD thousand ／ Foreign currency

Item Cash deposit Current saving and cheque deposit Foreign currency deposit (note） Current saving Short-term bills Time deposit	Summary USD 5,874,917 GBP 40 CAD 53,007 EUR 77,582 JPY 10,940,116 CNY 474,691 maturity date Jan. 04, 2022~Feb. 14, 2022 interest 0.33%～0.40%, USD6,000,000 maturity date Jan. 03, 2022~March 21, 2022 interest 0.18%～0.41%, USD22,800,000		Amount
			$ 633 177,521 162,618 1 1,146 2,430 2,631 2,062 298,944 631,104 $ 1,279,090

Note ： Dec 31, 2021 end of date exchange rate

USD ： NTD ＝ 1 ： 27.68 GBP ： NTD ＝ 1 ： 37.3 CAD ： NTD ＝ 1 ： 21.62 EUR ： NTD ＝ 1 ： 31.32 JPY ： NTD ＝ 1 ： 0.2405 CNY ： NTD ＝ 1 ： 4.344

• 84 -

Li Peng Enterprise Co. Ltd.

List of Financial assets measured at FVTPL-current

Dec 31, 2021

List 2

Unit ： NTD thousand

Asia Pacific Telecom Co., Ltd.（note 1） Trade-van Information Services Co., Ltd. Information Technology Total Services CO., Ltd.	Summary Public stocks Public stocks OTC stocks	Shares 3,277,157 427,675 33,750	Value 10 10 10	Total value of stocks or bonds $ 32,772 4,277 338 $ 37,387	Acquired cost $ - 59,325 - $ 59,325	Accumulated loss $ - - -	Fair value Unitprice 8.22 51.10 38.50	Total amount $ 26,939 21,854 1,299 $ 50,092	Guarantee or pledgeprovided
									NA NA NA

Note 1 ： The original acquisition cost of Asia-Pacific Telecom was NTD 50,000 thousand, and the impairment loss was listed in 2006. The company reduced the capital on November 8, 2019 to make up for the loss. The stock exchange date was January 17, 2020, so the cost after the capital reduction was NTD32,772 thousand and calculate the market value based on the proportion of capital reduction.

• 85 -

Li Peng Enterprise Co. Ltd.

List of notes receivable

Dec 31, 2021

List 3

Unit ： NTD thousand

Client name Notes receivable－ordinary businesses GOLDEN LIGHT ENTERPRISE CO., LTD. YEN HSING TEXTILE CO., LTD. MEN CHUEN FIBRE INDUSTRY CO., LTD. FASWELL CO., LTD. Other（note） Less：allowance for loss	Summary Receivables for goods 〃 〃 〃 〃		Amount
		(	$ 20,335 9,588 6,422 5,305 48,156 89,806 900) $ 88,906

Note: The amount of a single customer does not reach 5% of this subject.

• 86 -

Li Peng Enterprise Co. Ltd.

Notes receivable-list of related parties

Dec 31, 2021

List 4 Unit ： NTD thousand

Client name LI LING FILM CO., LTD. LEALEA ENTERPRISE CO., LTD. Other（note）	Summary Receivables for goods 〃 〃		Amount
			$ 134,181 58,645 80 $ 192,906

Note: The amount of a single customer does not reach 5% of this subject.

• 87 -

Li Peng Enterprise Co. Ltd.

List of accounts receivable

Dec 31, 2021

List 5

Unit ： NTD thousand

Client name Accounts receivable－ordinary businesses ACELON CHEMICALS & FIBER CORPORATION DESIPRO PTE LTD. HYOSUNG TNC CORPORATION ENKA DE COLOMBIA S.A. STANDARD CARPETS IND LLC Other（note） less：allowance for loss	Summary Receivables for goods 〃 〃 〃 〃 〃		Amount
		(	$ 121,309 100,768 99,189 70,517 61,211 618,359 1,071,353 7,751) $ 1,063,602

Note: The amount of a single customer does not reach 5% of this subject.

• 88 -

Li Peng Enterprise Co. Ltd.

－ List of accounts receivable related parties

Dec 31, 2021

	Dec 31, 2021	Dec 31, 2021	Dec 31, 2021
List 6 Client name LEALEA ENTERPRISE CO., LTD. LIBOLON (SHANGHAI) INTERNATIONAL TRADING CO., LTD. LI LING FILM CO., LTD. Other（note）	Unit：NTD thousand Summary Amount Receivables for goods $ 74,477 〃 61,928 〃 55,096 〃 653 $ 192,154
			$ 74,477 61,928 55,096 653 $ 192,154

Note: The amount of a single customer does not reach 5% of this subject.

• 89 -

Li Peng Enterprise Co. Ltd.

List of inventories

Dec 31, 2021

List 7

Unit ： NTD thousand

Item Raw materials Yarn Dye auxiliaries Plastic- masterbatch Caprolactam Processing oil, stabilizer and other auxiliary materials Dyed yarn raw material Laminating raw material Materials cost Materials Raw materials in transit Semi-finished greige －inhouse weaving Greige Semi-finished dye product －inhouse dye －outsourced dye Dyed yarn Making dyed yarn Nylon chip Making plastic-masterbatch Making nylon chip Making nylon yarn Processed goods cost Colored fabric Dyed yarn Plastic masterbatch Nylon yarn and chip Processed dyes Inventory in transit Merchandise inventory Production cost Less：allowance for loss of inventory depreciation	Summary		Total cost $ 395,673 52,931 82,410 123,307 117,594 11,604 3,292 786,811 103,939 316,878 86,339 241,263 60,945 78,932 3,565 2,988 444,031 6,364 924,427 126,693 10,495 56,712 672,664 29,923 288,690 3 1,185,180 228,763) $ 3,088,472		Total market price
		(			$ 342,321 50,812 77,469 121,444 106,831 10,706 3,292 712,875 76,139 301,560 86,339 222,066 59,913 78,538 2,893 2,988 425,613 6,135 884,485 99,591 9,478 44,886 644,487 29,919 285,049 3 1,113,413 - $ 3,088,472

• 90 -

Li Peng Enterprise Co. Ltd.

List of advance payments

Dec 31, 2021

List 8 Unit ： NTD thousand

Item Other prepaid expenses Net Input VAT Advance insurance payment Advance payment Other advance payments	Summary Advance lease payment and other		Amount
			$ 47,472 10,383 2,493 1,780 1,042 $ 63,170

• 91 -

Li Peng Enterprise Co. Ltd.

－ List of other financial assets current

Dec 31, 2021

	Dec 31, 2021	Dec 31, 2021	Dec 31, 2021
List 9 Item Other account receivable－ related parties Time deposits Other（note）	Unit：NTD thousand Summary Amount Payment for goods etc. $ 849,131 Foreign currency time deposits with original maturity greater than 3 months 89,052 56,370 $ 994,553
			$ 849,131 89,052 56,370 $ 994,553

Note: The amount of a single item does not reach 5% of this subject.

• 92 -

Li Peng Enterprise Co. Ltd.

－ List of financial assets measured at FVTOCI non-current changes

2021

List 10

Unit ： NTD thousand

Name Stocks LEALEA ENTERPRISE CO., LTD.	Balance,beginningof theperiod Shares Fair value 71,743,197 $ 947,010	Balance,beginningof theperiod Shares Fair value 71,743,197 $ 947,010	Increase Shares Amount - $ -	Increase Shares Amount - $ -	Decrease Shares Amount - $ 136,312	Decrease Shares Amount - $ 136,312	Balance,end of theperiod Shares Fair value 71,743,197 $ 810,698	Balance,end of theperiod Shares Fair value 71,743,197 $ 810,698	Guarantee or pledge provided
	Shares 71,743,197		Shares -		Shares -		Shares 71,743,197
									NA

• 93 -

Unit ： NTD thousand

Li Peng Enterprise Co. Ltd.

－ List of financial assets measured at FVTPL non-current changes

2021

List 11

Name Taiwan Filament Weaving Development Co., Ltd. Huazhi Venture Capital Co., Ltd. Juyou Technology Co., Ltd. TECHGAINS PAN-PACIFIC CORP Book4u Co., Ltd.	Balance,beginningof theperiod Shares Fair value 3,302,964 $ 9,730 21,739 217 180,491 1,448 150,000 430 6,250 - $ 11,825	Balance,beginningof theperiod Shares Fair value 3,302,964 $ 9,730 21,739 217 180,491 1,448 150,000 430 6,250 - $ 11,825	Increase Shares Amount - $ - - - - - - - - - $ -	Increase Shares Amount - $ - - - - - - - - - $ -	Decrease Shares Amount - $ 1,923 - - - - - - - - $ 1,923	Decrease Shares Amount - $ 1,923 - - - - - - - - $ 1,923	Balance,end of theperiod Shares Fair value 3,302,964 $ 7,807 21,739 217 180,491 1,448 150,000 430 6,250 - $ 9,902	Balance,end of theperiod Shares Fair value 3,302,964 $ 7,807 21,739 217 180,491 1,448 150,000 430 6,250 - $ 9,902	Guarantee or pledge provided
	Shares 3,302,964 21,739 180,491 150,000 6,250		Shares - - - - -		Shares - - - - -		Shares 3,302,964 21,739 180,491 150,000 6,250
									NA 〃 〃 〃 〃

• 94 -

Unit ： NTD thousand

Li Peng Enterprise Co. Ltd.

List of investments using equity method

2021

List 12

Name IN TALENT INVESTMENTS LIMITED Li Mao Investment Co., Ltd. Hung Hsing Investment Co., Ltd. Li Sing Investment Co., Ltd. Rich Development Co., Ltd. Li Hao Investment Co., Ltd. Li Zan Investment Co., Ltd. Lealea Technology Co., Ltd. Fu Li Transportation Co., Ltd. Libolon Energy Co., Ltd. PT. INDONESIA LIBOLON FIBER SYSTEM Eton Petrochemical Co., Ltd. Libolon Energy Co., Ltd. PT. INDONESIA LIBOLON FIBER SYSTEM	Balance,beginningofperiod Shares Amount 2,000,000 $ 298,896 40,356,000 410,776 26,296,000 310,106 42,400,000 339,691 51,117,852 928,252 35,244,000 396,375 21,540,000 242,742 7,041,004 115,858 2,800,000 36,357 9,000,000 100,656 2,000,000 15,469 2,100,000 18,826 5,730,000 752,312 900,000 13,293 $ 3,979,609	Balance,beginningofperiod Shares Amount 2,000,000 $ 298,896 40,356,000 410,776 26,296,000 310,106 42,400,000 339,691 51,117,852 928,252 35,244,000 396,375 21,540,000 242,742 7,041,004 115,858 2,800,000 36,357 9,000,000 100,656 2,000,000 15,469 2,100,000 18,826 5,730,000 752,312 900,000 13,293 $ 3,979,609	Increase Shares Amount - $ - - - - - - 80,493 - - - 27,640 - 13,348 1,056,150 - - - - - - 241 - - - - - - $ 121,722	Increase Shares Amount - $ - - - - - - 80,493 - - - 27,640 - 13,348 1,056,150 - - - - - - 241 - - - - - - $ 121,722	Decrease Shares Amount - $ 2,096 - 47,741 - 32,663 - - - 16,020 - - - - - 10,561 - 1,120 - 7,180 - - - - - 10,624 - 3,622 $ 131,627	Decrease Shares Amount - $ 2,096 - 47,741 - 32,663 - - - 16,020 - - - - - 10,561 - 1,120 - 7,180 - - - - - 10,624 - 3,622 $ 131,627	Investment profit（loss） $ 4,278 299 1,414 ( 229 ) 21,072 ( 1,881 ) ( 1,185 ) 24,070 2,483 12,230 ( 3,799 ) ( 6,848 ) ( 29,744 ) 24,873 $ 47,033	Balance,end ofperiod Shares ％share hold Amount 2,000,000 100 $ 301,078 40,356,000 53.38 363,334 26,296,000 53.02 278,857 42,400,000 53.00 419,955 51,117,852 6.87 933,304 35,244,000 46.62 422,134 21,540,000 46.83 254,905 8,097,154 18.54 129,367 2,800,000 20.00 37,720 9,000,000 30.00 105,706 2,000,000 3.33 11,911 2,100,000 70.00 11,978 5,730,000 30.00 711,944 900,000 75.00 34,544 $ 4,016,737	Balance,end ofperiod Shares ％share hold Amount 2,000,000 100 $ 301,078 40,356,000 53.38 363,334 26,296,000 53.02 278,857 42,400,000 53.00 419,955 51,117,852 6.87 933,304 35,244,000 46.62 422,134 21,540,000 46.83 254,905 8,097,154 18.54 129,367 2,800,000 20.00 37,720 9,000,000 30.00 105,706 2,000,000 3.33 11,911 2,100,000 70.00 11,978 5,730,000 30.00 711,944 900,000 75.00 34,544 $ 4,016,737	Balance,end ofperiod Shares ％share hold Amount 2,000,000 100 $ 301,078 40,356,000 53.38 363,334 26,296,000 53.02 278,857 42,400,000 53.00 419,955 51,117,852 6.87 933,304 35,244,000 46.62 422,134 21,540,000 46.83 254,905 8,097,154 18.54 129,367 2,800,000 20.00 37,720 9,000,000 30.00 105,706 2,000,000 3.33 11,911 2,100,000 70.00 11,978 5,730,000 30.00 711,944 900,000 75.00 34,544 $ 4,016,737	Marketprice or equity Unitprice Total amount 150.66 $ 301,318 13.66 551,245 15.72 413,307 10.96 464,895 9.50 485,620 11.98 422,134 11.83 254,905 15.98 129,363 13.47 37,720 11.75 105,722 5.99 11,983 5.70 11,978 85.63 490,646 38.38 34,544 $ 3,715,380	Marketprice or equity Unitprice Total amount 150.66 $ 301,318 13.66 551,245 15.72 413,307 10.96 464,895 9.50 485,620 11.98 422,134 11.83 254,905 15.98 129,363 13.47 37,720 11.75 105,722 5.99 11,983 5.70 11,978 85.63 490,646 38.38 34,544 $ 3,715,380	Guarantee or pledge provided
	Shares 2,000,000 40,356,000 26,296,000 42,400,000 51,117,852 35,244,000 21,540,000 7,041,004 2,800,000 9,000,000 2,000,000 2,100,000 5,730,000 900,000		Shares - - - - - - - 1,056,150 - - - - - -		Shares - - - - - - - - - - - - - -			Shares 2,000,000 40,356,000 26,296,000 42,400,000 51,117,852 35,244,000 21,540,000 8,097,154 2,800,000 9,000,000 2,000,000 2,100,000 5,730,000 900,000	％share hold 100 53.38 53.02 53.00 6.87 46.62 46.83 18.54 20.00 30.00 3.33 70.00 30.00 75.00		Unitprice 150.66 13.66 15.72 10.96 9.50 11.98 11.83 15.98 13.47 11.75 5.99 5.70 85.63 38.38
													NA NA NA NA NA NA NA NA NA NA NA NA NA NA

• 95 -

Li Peng Enterprise Co. Ltd.

List of changes in right-of-use assets

2021

List 13 Unit ： NTD thousand

Item Cost： Land Accumulated depreciation： Land	Balance, beginning of period $ 959 $ 239		Increase $ - $ 179		Decrease $ 3 $ -	Balance, end ofperiod	Balance, end ofperiod
							$ 956 $ 418

• 96 -

Li Peng Enterprise Co. Ltd.

List of short-term loan Jan 1 to Dec 31, 2021

List 14

Unit ： NTD thousand

Bank of Taiwan Songjiang 〃 〃 〃 〃 Cathay United Bank Guanghua Where Bank Taipei Taishin Bank JienBei 〃 Shin Kong Commercial Bank, Nan Dong 〃 Yuanta Bank Fu Hua 〃		Loan amount $ 215,000 200,000 35,000 50,000 800,000 120,000 100,000 600,000 130,000 265,000 80,000 100,000 100,000 $ 2,795,000	Summary Mortgage loan 〃 Credit loan 〃 〃 〃 〃 〃 〃 〃 〃 〃 〃	Contractperiod 2021.12.15~2022.01.14 2021.12.29~2022.01.05 2021.11.29~2022.02.25 2021.11.30~2022.02.25 2021.12.07~2022.03.07 2021.11.26~2022.02.23 2021.12.14~2022.03.14 2021.12.13~2022.01.13 2021.12.15~2022.01.14 2021.12.24~2022.12.31 2021.12.27~2022.12.31 2021.11.17~2022.02.15 2021.11.24~2022.02.22	Interest （annual） （％） 0.85 0.85 0.81 0.81 0.81 0.80 0.80 0.83 0.83 0.80 0.80 0.81 0.81	Financing amount $ 500,000 500,000 1,950,000 1,950,000 1,950,000 120,000 100,000 900,000 900,000 350,000 350,000 200,000 200,000	Note

• 97 -

Li Peng Enterprise Co. Ltd.

List of short-term corporate bonds payable

Dec 31, 2021

List 15

Unit ： NTD thousand

Item Payable commercial promissory note	Securityorg. Mega Bills International Bills Finance Corporation Grand Bill Ta Ching Bills Finance Corporation Taiwan Cooperative Bills Finance Corporation China Bills Finance	Contractperiod 2021.12.24~2022.01.03 2021.10.21~2022.01.19 2021.12.28~2022.01.17 2021.12.16~2022.01.05 2021.12.28~2022.01.17 2021.12.28~2022.01.17	Interest range（％） 0.65 0.55 0.48 0.58 0.68 0.39		Amount
				Issued amount $ 170,000 100,000 100,000 200,000 30,000 200,000 $ 800,000	Unamortized payable short-term bill discount $ - - - - - - $ -		Book value
							$ 170,000 100,000 100,000 200,000 30,000 200,000 $ 800,000

• 98 -

Li Peng Enterprise Co. Ltd.

List of notes payable

Dec 31, 2021

List 16 Unit ： NTD thousand

Client Name DAYE INTERNATIONAL DEVELOPMENT CO., LTD. JVAN AN INTERNATIONAL COMPANY, LTD. Other（note）	Summary Payment for goods 〃 〃		Amount
			$ 30,105 3,592 4,673 $ 38,370

Note: The amount of a single customer does not reach 5% of this subject.

• 99 -

Li Peng Enterprise Co. Ltd.

－ List of notes payable related parties

Dec 31, 2021

List 17 Unit ： NTD thousand

Client Name LEALEA ENTERPRISE CO., LTD. FU LI TRANSPORTATION CO., LTD.	Summary Payment for goods 〃		Amount
			$ 81,054 4,506 $ 85,560

• 100 -

Li Peng Enterprise Co. Ltd.

List of accounts payable

Dec 31, 2021

List 18

Unit ： NTD thousand

Client Name SBU-NITROTRADE AG CHINA PETROCHEMICAL DEV. SUMITOMO CHEMICAL ASIA PTE LTD OPTIMA CHEMICAL LTD UBE INDUSTRIES LTD Other（note）	Summary Payment for goods 〃 〃 〃 〃 〃		Amount
			$ 366,075 218,178 87,192 62,778 60,267 344,704 $ 1,139,194

Note: The amount of a single customer does not reach 5% of this subject.

• 101 -

Li Peng Enterprise Co. Ltd.

－ List of accounts payable related parties

Dec 31, 2021

List 19 Unit ： NTD thousand

Client Name LEALEA ENTERPRISE CO., LTD. PT. INDONESIA LIBOLON FIBER SYSTEM FU LI TRANSPORTATION CO., LTD.	Summary Payment for goods 〃 〃		Amount
			$ 103,069 4,579 2,936 $ 110,584

• 102 -

Li Peng Enterprise Co. Ltd.

List of other payables

Dec 31, 2021

List 20

Unit ： NTD thousand

Item Other payables	Summary Advance payment payable Other notes payable Year-end bonus payable Salary payable Water and electricity bill payable Processed fee payable Purchase of equipment payable Other payables		Amount
			$ 826,367 64,103 117,752 51,698 35,445 32,098 16,856 289,026 $ 1,433,345

• 103 -

Li Peng Enterprise Co. Ltd.

List of long-term loans due in a year Dec 31, 2021

Dec	31, 2021	31, 2021	31, 2021
List 21 Item List of long-term loans due in a year	Unit：NTD thousand Summary Amount Bank CHB Zhong Zheng $ 31,250
			$ 31,250

• 104 -

Li Peng Enterprise Co. Ltd.

List of other current liabilities Dec 31, 2021

List 22 Unit ： NTD thousand Item Summary Amount Advance sales receipts $ 160,335 Other （ note ） 4,974 $ 165,309

Note: The amount of a single item does not reach 5% of this subject.

• 105 -

Li Peng Enterprise Co. Ltd.

List of long-term loan

Dec 31, 2021

List 23

Unit ： NTD thousand

Creditor Long-term bank loan Bank CHB Zhong Zheng 〃 Bank of Taiwan Song Jiang KGI Bank The Export-lmport Bank of Roc Less：Long-term loan due in a year	Summary Credit loan, monthly interest payment Mortgage loan, monthly interest payment 〃 Credit loan, monthly interest payment 〃	Loan amount $ 125,000 375,000 1,000,000 175,000 150,000 1,825,000 31,250 $ 1,793,750	Contractperiod 2021.04.14～ 2024.04.14 2021.12.30～ 2024.12.30 2021.03.30～ 2028.03.30 2021.12.15～ 2023.03.29 2021.08.05～ 2023.08.05	Interest（％） 1.40 1.19056 1.1575 1.19078 0.8306	Pledge orguarantee
					NA Land and building Land and plant NA NA

• 106 -

Li Peng Enterprise Co. Ltd.

List of operating income

2021

List 24 Unit ： NTD thousand

Item Nylon chip Weaving fabric Nylon yarn Petrochemical Processing income Knitted fabric Dyed yarn Textured yarn Plastic masterbatch Other	Quantity 87,070tons 36,516thousand yards 24,603tons 57,516tons note 935tons 803tons 1,177tons 1,106tons note		Amount
			$ 5,376,360 2,167,165 2,148,409 1,386,309 490,311 281,759 161,931 109,594 74,060 73,069 $ 12,268,967

Note: A single subject includes products calculated in different units, and with disclosed amount.

• 107 -

Li Peng Enterprise Co. Ltd.

List of operating cost

2021

List 25

Unit ： NTD thousand

Item Raw material, beginning of the period Inventory in transit, beginning of the period add：Procured material in the period Other less：Raw materials end of the period Inventory in transit, end of the period Sold raw materials R&D materials Other Turn to processing cost Direct raw materials Direct labor Manufacturing expense less：Sale of nitrogen and electricity Selling pallet cost Other Manufacturing cost add：processing goods, beginning of the period Procured raw cloth in the period Less: processed goods, end of the period R&D use Turn to processing cost Other Finished goods cost add：Finished goods, beginning of the period Inventory in transit, beginning of the period Procured raw yarn and dye cloth in the period less：Finished good, end of the period Inventory in transit, end of the period R&D use Turn to processing cost Income from sale Other Impairment loss on inventory

Amount

$ 481,211 232,865 7,720,532 10,964 ( 786,811 ) ( 316,878 ) ( 111,540 ) ( 19,370 ) ( 870 ) ( 30,342) 7,179,761 577,837 2,493,305 ( 55,235 ) ( 23,514 ) ( 1,107) 10,171,047 596,761 315,605 ( 924,427 ) ( 39,603 ) ( 24,955 ) ( 6,163) 10,088,265 501,053 226,972 1,343,855 ( 896,490 ) ( 288,690 ) ( 3,571 ) ( 411,385 ) ( 49,715 ) ( 16,487 ) 86,082

（ continued in next page ）

• 108 -

• （ continued from last page ）

Item add：Sale of nitrogen and electricity Processing cost Total operating cost less：Processing cost discount Net operating cost		Amount
	(	$ 166,774 466,683 11,213,346 1,017) $ 11,212,329

• 109 -

Li Peng Enterprise Co. Ltd. List of sales expenses 2021 List 26 Unit：NTD thousand Item Summary Amount Freight $ 332,898 Export 38,656 Other The amount of a single item does not exceed 5% of the items 58,441 $ 429,995	Li Peng Enterprise Co. Ltd. List of sales expenses 2021 List 26 Unit：NTD thousand Item Summary Amount Freight $ 332,898 Export 38,656 Other The amount of a single item does not exceed 5% of the items 58,441 $ 429,995	Li Peng Enterprise Co. Ltd. List of sales expenses 2021 List 26 Unit：NTD thousand Item Summary Amount Freight $ 332,898 Export 38,656 Other The amount of a single item does not exceed 5% of the items 58,441 $ 429,995
		$ 332,898 38,656 58,441 $ 429,995

• 110 -

Li Peng Enterprise Co. Ltd.

List of management expenses

2021

List 27 Unit ： NTD thousand

Item Salary expense Lease expense Service expense Insurance fees Other	Summary The amount of a single item does not exceed 5% of the items		Amount
			$ 104,768 25,887 14,693 9,780 33,512 $ 188,640

• 111 -

Li Peng Enterprise Co. Ltd.

List of research and development expenses

2021

	2021	2021	2021
List 28 Item Raw materials Processing cost Salary expense Other	Unit：NTD thousand Summary Amount $ 31,157 30,983 28,202 The amount of a single item does not exceed 5% of the items 19,442 $ 109,784
			$ 31,157 30,983 28,202 19,442 $ 109,784

• 112 -

Li Peng Enterprise Co. Ltd.

Employee benefits, depreciation, depletion and amortization expenses incurred in the current period 2021 and 2020

List 29

Unit ： NTD thousand

Employee benefit expense Salary expense Labor and health insurance expense Retirement benefit expense Board’s remuneration expense Other employees’ benefits Depreciation Amortization			2021		Total $ 764,161 77,489 26,575 4,349 82,347 $ 954,921 $ 584,279 $ 71,277			2020
	Operatingcost $ 631,559 65,710 21,068 - 72,230 $ 790,567 $ 573,265 $ 69,483		Operating expense $ 132,602 11,779 5,507 4,349 10,117 $ 164,354 $ 11,014 $ 1,794			Operatingcost $ 537,882 57,964 21,730 - 57,744 $ 675,320 $ 603,430 $ 75,687		Operating expense $ 114,105 11,160 5,871 3,195 8,640 $ 142,971 $ 11,278 $ 2,419		Total
										$ 651,987 69,124 27,601 3,195 66,384 $ 818,291 $ 614,708 $ 78,106

Note:

1. The number of employees for this year and the previous year were 1,300 and 1,307 respectively, of which 6 were directors who were not part-time employees.

2. (1) The average employee welfare expense for the year was NTD 735 thousand ("Total employee benefits for the year-total directors' remuneration" / "Number of employees for the Year-Number of directors who are not part-time employees").

The average employee welfare expense in the previous year is NTD627 thousand ("Total employee benefits in the previous Year-Total directors' remuneration" / "Number of employees in the previous year-Number of directors who are not part-time employees").

• (2) The average employee salary expense for the year is NTD 590 thousand (the total salary expense for the year / "the number of employees this year-the number of directors who are not part-time employees").

The average employee salary cost of the previous year is NTD 501 thousand (the total salary cost of the previous year / "the number of employees in the previous year-the number of directors who are not part-time employees").

• (3) Changes in the average employee salary cost adjustment is 17.76% ("Average employee salary cost of the current Year-Average employee salary cost of the previous year" / Average employee salary cost of the previous year).

• The company has established an audit committee and has not appointed a supervisor, so there is no supervisor's remuneration.

• The company's salary and remuneration policy is as follows:

• (1) Board

According to Article 28 of the Articles of Association, the company shall allocate no more than 5% of the current pre-tax benefits prior to the deduction of remuneration for employees and directors in the current year as directors’ remuneration. However, if there are accumulated losses, the compensation amount shall be reserved in advance, and then directors’ remuneration shall be allocated in accordance with the aforementioned proportion.

• (2) Manager

The salary level of the company’s managers must be competitive in the same industry in order to attract outstanding talents and maintain outstanding performers internally. Managers’ personal remuneration levels are differentiated based on their responsibilities and performance to encourage managers to assume their responsibilities and achieve KPI. Managers are responsible for operating performance, and incentives should take into account the company's long-term and short-term business performances.

• (3) Employee

The overall salary of the company's employees is based on the principle of taking into account the average pay internally and the market competitiveness, including fixed salary and variable salary, and instant rewards to employees when achieving good operational results as to attract, motivate and retain talents. The total amount of employee remuneration is in accordance with the company’s articles of association. The company’s annual net profit before tax before deduction of employee remuneration and directors’ remuneration shall be allocated at least 2% as employee remuneration. Employees' individual remuneration is based on their job responsibilities and professional skills, and bonuses are for rewarding their performance and contribution.

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