PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REVIEW REPORT JUNE 30, 2021 AND 2020

For the convenience of readers and for information purpose only, the auditors’ report and the accompanying financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. In the event of any discrepancy between the English version and the original Chinese version or any differences in the interpretation of the two versions, the Chinese-language auditors’ report and financial statements shall prevail.

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INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

Introduction

We have reviewed the accompanying consolidated balance sheets of Prince Housing & Development Corp. and subsidiaries (the “Group”) as at June 30, 2021 and 2020, and the related consolidated statements of comprehensive income for the three months and six months then ended, as well as the consolidated statements of changes in equity and of cash flows for the six months then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on these consolidated financial statements based on our reviews.

Scope of review

Except as explained in the following paragraph, we conducted our reviews in accordance with the Statement of Auditing Standards No. 65, “Review of Financial Information Performed by the Independent Auditor of the Entity” in the Republic of China. A review of consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for qualified conclusion

As explained in Note 4(3), the financial statements of certain insignificant consolidated subsidiaries were not reviewed by independent auditors whose statements reflect total assets of NT$4,401,440 thousand and NT$4,585,393 thousand, both constituting 9% of the consolidated total assets, and total liabilities of NT$2,239,636 thousand and NT$2,340,604 thousand, constituting 10% and 8% of the consolidated total liabilities as at June 30, 2021 and 2020, and total comprehensive income (loss) of NT$38,371 thousand, NT$25,427 thousand, NT($32,388) thousand and NT($15,142) thousand, constituting 4%, 6%, (2%) and (4%) of the consolidated total comprehensive income for the three months and six months then ended. As explained in Note 6(7), investments accounted for using equity method were assessed and disclosed

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based on the financial statements that were not reviewed by the independent auditors, which statements reflect share of profit of associates and joint ventures of NT$3,868 thousand, NT$7,374 thousand, NT$20,887 thousand and NT$9,486 thousand for the three months and six months then ended, and investments (including credit balance transferred to other non-current liabilities-others of NT$139,754 thousand and NT$139,411 thousand) of NT$1,694,673 thousand and NT$1,692,055 thousand as at June 30, 2021 and 2020, respectively.

Qualified conclusion

Except for the adjustments to the consolidated financial statements, if any, as might have been determined to be necessary had the financial statements of certain consolidated subsidiaries and investments accounted for using equity method been reviewed by independent auditors as described in the Basis for qualified conclusion section above, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements do not present fairly, in all material respects, the consolidated financial position of the Group as at June 30, 2021 and 2020, and of its consolidated financial performance for the three months and six months then ended and its consolidated cash flows for the six months then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” as endorsed by the Financial Supervisory Commission.

Wang, Kuo-Hua Tien, Chung-Yu

For and on behalf of PricewaterhouseCoopers, Taiwan

August 5, 2021

------------------------------------------------------------------------------------------------------------------------------------------------The accompanying consolidated financial statements are not intended to present the financial position and results of operations and cash flows in accordance with accounting principles generally accepted in countries and jurisdictions other than the Republic of China. The standards, procedures and practices in the Republic of China governing the audit of such financial statements may differ from those generally accepted in countries and jurisdictions other than the Republic of China. Accordingly, the accompanying consolidated financial statements and independent auditors’ review report are not intended for use by those who are not informed about the accounting principles or auditing standards generally accepted in the Republic of China, and their applications in practice.

As the financial statements are the responsibility of the management, PricewaterhouseCoopers cannot accept any liability for the use of, or reliance on, the English translation or for any errors or misunderstandings that may derive from the translation.

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PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

JUNE 30, 2021, DECEMBER 31, 2020 AND JUNE 30, 2020 (Expressed in thousands of New Taiwan dollars) (The balance sheets as of June 30, 2021 and 2020 are reviewed, not audited)

Assets	Notes	June 30, 2021 AMOUNT % `$` `2,780,635` `6` `2,398,329` `5` `776,808` `2` `143,799` `-` `66,734` `-` `580,946` `1` `4,304` `-` `45,222` `-` `-` `-` `14,197,603 29` `115,460` `-` `6,311` `-` `21,116,151 43` `1,992,306` `4` `2,775,226` `6` `703,784` `1` `1,834,427` `4` `5,742,746 12` `6,951,197 14` `5,528,938 11` `1,966,643` `4` `231,652` `1` `126,897` `-` `124,099` `-` `27,977,915 57` `$` `49,094,066 100` (Continued)	December 31, 2020 AMOUNT % `$` `5,406,601` `10` `904,348` `2` `960,960` `2` `200,782` `1` `25,934` `-` `1,026,186` `2` `4,049` `-` `84,537` `-` `24,189` `-` `16,678,009` `32` `101,098` `-` `3,381` `-` `25,420,074` `49` `894,021` `2` `2,246,407` `4` `772,833` `1` `1,864,597` `4` `5,835,171` `11` `7,181,349` `14` `5,582,210` `11` `1,996,776` `4` `176,995` `-` `113,575` `-` `81,406` `-` `26,745,340` `51` `$` `52,165,414` `100`	June 30, 2020	June 30, 2020
		AMOUNT `$` `2,780,635` `2,398,329` `776,808` `143,799` `66,734` `580,946` `4,304` `45,222` `-` `14,197,603` `115,460` `6,311` `21,116,151` `1,992,306` `2,775,226` `703,784` `1,834,427` `5,742,746` `6,951,197` `5,528,938` `1,966,643` `231,652` `126,897` `124,099` `27,977,915` `$` `49,094,066` (Continued)	AMOUNT `$` `5,406,601` `904,348` `960,960` `200,782` `25,934` `1,026,186` `4,049` `84,537` `24,189` `16,678,009` `101,098` `3,381` `25,420,074` `894,021` `2,246,407` `772,833` `1,864,597` `5,835,171` `7,181,349` `5,582,210` `1,996,776` `176,995` `113,575` `81,406` `26,745,340` `$` `52,165,414`	AMOUNT `$` `3,697,909` `1,293,547` `1,003,136` `139,664` `83,187` `703,742` `4,257` `57,477` `17,473` `18,957,281` `98,416` `8,005` `26,064,094` `597,991` `2,190,644` `891,132` `1,831,466` `6,039,124` `7,432,903` `5,640,058` `2,026,855` `133,911` `166,538` `104,833` `27,055,455` `$` `53,119,549`	%
Current assets 1100 Cash and cash equivalents 1110 Financial assets at fair value through profit or loss - current 1136 Current financial assets at amortised cost 1140 Current contract assets 1150 Notes receivable, net 1170 Accounts receivable, net 1180 Accounts receivable - related parties 1200 Other receivables 1220 Current income tax assets 130X Inventories, net 1410 Prepayments 1479 Other current assets 11XX Current Assets Non-current assets 1510 Financial assets at fair value through profit or loss - non- current 1517 Non-current financial assets at fair value through other comprehensive income 1535 Non-current financial assets at amortised cost 1550 Investments accounted for under equity method 1600 Property, plant and equipment, net 1755 Right-of-use assets 1760 Investment property, net 1780 Intangible assets, net 1840 Deferred income tax assets 1920 Refundable deposits 1990 Other non-current assets 15XX Non-current assets 1XXX Total assets	6(1) 6(2) and 8 6(4) and 8 6(24) 6(5) 6(5) 6(5) and 7 6(6) and 8 6(24) 6(2) and 8 6(3) and 8 6(4) and 8 6(7) and 8 6(8) and 8 6(9) 6(11) and 8 6(12) 7 and 9				`7` `3` `2` `-` `-` `1` `-` `-` `-` `36` `-` `-`
					`49`
					`1` `4` `2` `4` `11` `14` `11` `4` `-` `-` `-`
					`51`
					`100`

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PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

JUNE 30, 2021, DECEMBER 31, 2020 AND JUNE 30, 2020

(Expressed in thousands of New Taiwan dollars) (The balance sheets as of June 30, 2021 and 2020 are reviewed, not audited)

Liabilities and Equity	Notes	June 30, 2021 AMOUNT % `$` `280,000` `1` `70,000` `-` `784,659` `2` `497` `-` `1,469,737` `3` `625,174` `1` `114,584` `-` `448,943` `1` `86,767` `-` `2,688,510` `6` `76,320` `-` `6,645,191` `14` `2,500,000` `5` `4,567,369` `9` `126,414` `-` `298,084` `1` `7,200,288` `15` `808,301` `2` `61,503` `-` `182,766` `-` `194,664` `-` `15,939,389` `32` `22,584,580` `46` `16,233,261` `33` `2,260,513` `5` `2,153,743` `4` `3,910,498` `8` `1,779,317` `4` `(` `1,003 )` `-` `26,336,329` `54` `173,157` `-` `26,509,486` `54` `$` `49,094,066` `100`	December 31, 2020 AMOUNT % `$` `1,315,000` `3` `50,000` `-` `916,950` `2` `306` `-` `1,798,011` `3` `718,474` `1` `123,422` `-` `442,471` `1` `44,413` `-` `989,177` `2` `76,741` `-` `6,474,965` `12` `4,500,000` `9` `7,704,060` `15` `113,024` `-` `298,084` `1` `7,418,712` `14` `808,301` `2` `67,490` `-` `160,581` `-` `194,835` `-` `21,265,087` `41` `27,740,052` `53` `16,233,261` `31` `2,260,513` `5` `2,153,743` `4` `2,313,465` `4` `1,242,257` `2` `(` `1,003)` `- (` `24,202,236` `46` `223,126` `1` `24,425,362` `47` `$` `52,165,414` `100`	June 30, 2020	June 30, 2020
		AMOUNT `$` `280,000` `70,000` `784,659` `497` `1,469,737` `625,174` `114,584` `448,943` `86,767` `2,688,510` `76,320` `6,645,191` `2,500,000` `4,567,369` `126,414` `298,084` `7,200,288` `808,301` `61,503` `182,766` `194,664` `15,939,389` `22,584,580` `16,233,261` `2,260,513` `2,153,743` `3,910,498` `1,779,317` `(` `1,003 )` `26,336,329` `173,157` `26,509,486` `$` `49,094,066`	AMOUNT `$` `1,315,000` `50,000` `916,950` `306` `1,798,011` `718,474` `123,422` `442,471` `44,413` `989,177` `76,741` `6,474,965` `4,500,000` `7,704,060` `113,024` `298,084` `7,418,712` `808,301` `67,490` `160,581` `194,835` `21,265,087` `27,740,052` `16,233,261` `2,260,513` `2,153,743` `2,313,465` `1,242,257` `(` `1,003)` `24,202,236` `223,126` `24,425,362` `$` `52,165,414`	AMOUNT `$` `1,739,000` `349,830` `792,806` `2,529` `1,656,407` `1,222,482` `16,093` `402,560` `92,475` `2,037,977` `45,800` `8,357,959` `4,500,000` `7,265,569` `109,696` `298,099` `7,642,479` `808,301` `66,911` `180,141` `194,132` `21,065,328` `29,423,287` `16,233,261` `2,260,513` `2,153,743` `1,629,207` `1,186,513` `1,003)` `23,462,234` `234,028` `23,696,262` `$` `53,119,549`	%
Current liabilities 2100 Short-term borrowings 2110 Short-term notes and bills payable 2130 Current contract liabilities 2150 Notes payable 2170 Accounts payable 2200 Other payables 2230 Current income tax liabilities 2280 Current lease liabilities 2310 Receipts in advance 2320 Long-term liabilities, current portion 2399 Other current liabilities 21XX Current Liabilities Non-current liabilities 2530 Bonds payable 2540 Long-term borrowings 2550 Provisions for liabilities - non- current 2570 Deferred income tax liabilities 2580 Non-current lease liabilities 2610 Long-term notes and accounts payable 2640 Net defined benefit liability - non-current 2645 Guarantee deposits received 2670 Other non-current liabilities 25XX Non-current liabilities 2XXX Total Liabilities Equity attributable to owners of parent Share capital 3110 Common stock Capital surplus 3200 Capital surplus Retained earnings 3310 Legal reserve 3350 Unappropriated retained earnings Other equity interest 3400 Other equity interest 3500 Treasury stocks 31XX Equity attributable to owners of the parent 36XX Non-controlling interest 3XXX Total equity Significant contingent liabilities and unrecognised contract commitments Significant contingent liabilities and unrecognised contract commitments 3X2X Total liabilities and equity	6(13) and 8 6(14) and 8 6(24) 7 6(15)(16) and 8 6(15) 6(16) and 8 6(17) 7 6(7) 6(19) 6(20) 6(21) 6(22) 6(19) 9 11				`3` `1` `2` `-` `3` `2` `-` `1` `-` `4` `-`
					`16`
					`8` `14` `-` `1` `14` `2` `-` `-` `-`
					`39`
					`55`
					`30` `5` `4` `3` `2` `-`
					`44` `1`
					`45`
					`100`

The accompanying notes are an integral part of these consolidated financial statements.

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PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except earnings per share amounts)

(UNAUDITED)

					Three months ended June 30	Three months ended June 30	Three months ended June 30	Three months ended June 30			Six months ended June 30	Six months ended June 30	Six months ended June 30	Six months ended June 30
					2021			2020			2021			2020
	Items	Notes			AMOUNT	%	AMOUNT		%		AMOUNT	%	AMOUNT		%
4000	Sales revenue	6(24) and 7		`$`	`2,678,022`	`100`	`$ 2,179,743`		`100`	`$`	`5,910,171`	`100`	`$`	`4,812,096`	`100`
5000	Operating costs	6(6)(12)(29)	`(`		`1,907,798 ) (`	`71) (`	`1,956,740 ) (`		`90) (`		`4,330,582 ) (`	`73) (`		`4,110,823) (`	`85 )`
5900	Gross profit				`770,224`	`29`		`223,003`	`10`		`1,579,589`	`27`		`701,273`	`15`
	Operating expenses	6(12)(29)
6100	Selling expenses		`(`		`63,961 ) (`	`2) (`		`44,132 ) (`	`2) (`		`147,419 ) (`	`2) (`		`117,941) (`	`3 )`
6200	General and administrative
	expenses		`(`		`473,641 ) (`	`18) (`		`358,196 ) (`	`16) (`		`978,468 ) (`	`17) (`		`726,320) (`	`15 )`
6450	Impairment loss (impairment	12(2)
	gain and reversal of
	impairment loss) determined in
	accordance with IFRS 9		`(`		`465 )`	`-`		`101`	`- (`		`459 )`	`-`		`237`	`-`
6000	Total operating expenses		`(`		`538,067 ) (`	`20) (`		`402,227 ) (`	`18) (`		`1,126,346 ) (`	`19) (`		`844,024) (`	`18 )`
6900	Operating profit (loss)				`232,157`	`9 (`		`179,224 ) (`	`8)`		`453,243`	`8 (`		`142,751) (`	`3 )`
	Non-operating income and
	expenses
7100	Interest income	6(25)			`2,126`	`-`		`3,726`	`-`		`4,163`	`-`		`7,118`	`-`
7010	Other income	6(3)(26)			`122,779`	`5`		`148,858`	`7`		`183,463`	`3`		`159,367`	`4`
7020	Other gains and losses	6(2)(27)			`459,824`	`17`		`164,094`	`7`		`1,102,351`	`19`		`148,282`	`3`
7050	Finance costs	6(6)(28) and 7`(`			`70,816 ) (`	`3) (`		`73,878 ) (`	`3) (`		`151,582 ) (`	`3) (`		`151,253) (`	`3 )`
7060	Share of profit/(loss) of	6(7)
	associates and joint ventures
	accounted for under equity
	method				`3,868`	`-`		`7,374`	`-`		`20,887`	`-`		`9,486`	`-`
7000	Total non-operating income
	and expenses				`517,781`	`19`		`250,174`	`11`		`1,159,282`	`19`		`173,000`	`4`
7900	Profit before income tax				`749,938`	`28`		`70,950`	`3`		`1,612,525`	`27`		`30,249`	`1`
7950	Income tax expense	6(30)	`(`		`17,422 ) (`	`1)`		`24,625`	`1 (`		`65,461 ) (`	`1)`		`23,533`	`-`
8200	Profit for the period			`$`	`732,516`	`27`	`$`	`95,575`	`4`	`$`	`1,547,064`	`26`	`$`	`53,782`	`1`
	Other comprehensive income
	Components of other
	comprehensive income that will
	not be reclassified to profit or
	loss
8316	Total expenses, by nature	6(3)(22)		`$`	`209,350`	`8`	`$`	`362,375`	`17`	`$`	`537,060`	`9`	`$`	`310,023`	`7`
8310	Components of other
	comprehensive income that
	will not be reclassified to
	profit or loss				`209,350`	`8`		`362,375`	`17`		`537,060`	`9`		`310,023`	`7`
8300	Total other comprehensive
	income for the period			`$`	`209,350`	`8`	`$`	`362,375`	`17`	`$`	`537,060`	`9`	`$`	`310,023`	`7`
8500	Total comprehensive income for
	the period			`$`	`941,866`	`35`	`$`	`457,950`	`21`	`$`	`2,084,124`	`35`	`$`	`363,805`	`8`
	Profit (loss), attributable to:
8610	Owners of the parent			`$`	`764,769`	`28`	`$`	`125,332`	`5`	`$`	`1,597,033`	`27`	`$`	`107,230`	`2`
8620	Non-controlling interest		`(`		`32,253 ) (`	`1) (`		`29,757 ) (`	`1) (`		`49,969 ) (`	`1) (`		`53,448) (`	`1 )`
				`$`	`732,516`	`27`	`$`	`95,575`	`4`	`$`	`1,547,064`	`26`	`$`	`53,782`	`1`
	Comprehensive income (loss),
	attributable to:
8710	Owners of the parent			`$`	`974,119`	`36`	`$`	`487,707`	`22`	`$`	`2,134,093`	`36`	`$`	`417,253`	`9`
8720	Non-controlling interest		`(`		`32,253 ) (`	`1) (`		`29,757 ) (`	`1) (`		`49,969 ) (`	`1) (`		`53,448) (`	`1 )`
				`$`	`941,866`	`35`	`$`	`457,950`	`21`	`$`	`2,084,124`	`35`	`$`	`363,805`	`8`
	Earnings per share (in dollars)	6(31)
9750	Basic earnings per share			`$`		`0.47`	`$`		`0.08`	`$`		`0.98`	`$`		`0.07`
9850	Diluted earnings per share			`$`		`0.47`	`$`		`0.08`	`$`		`0.97`	`$`		`0.07`

The accompanying notes are an integral part of these consolidated financial statements.

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PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

Notes			Equityattributable to	Equityattributable to	Equityattributable to	owners of theparent	owners of theparent
	Share capital - common stock	Capital surplus, additional paid-in capital	Retained	earnings		Other equity interest		Treasurystocks		Total
			Legal reserve		Unappropriated retained earnings (accumulated deficit)	Financial statements translation differences of foreign operations	Unrealised gains (losses) from financial assets measured at fair value through other comprehensive income
6(31) 6(3)(22) 6(21) 6(31) 6(3)(22)	`$ 16,233,261` `-` `-` `-` `-` `-` `-` `$ 16,233,261` `$ 16,233,261` `-` `-` `-` `$ 16,233,261`	`$ 2,260,513` `-` `-` `-` `-` `-` `-` `$ 2,260,513` `$ 2,260,513` `-` `-` `-` `$ 2,260,513`	`$ 2,058,870` `-` `-` `-` `94,873` `-` `-` `$ 2,153,743` `$ 2,153,743` `-` `-` `-` `$ 2,153,743`	`$ 2,428,513` `107,230` `-` `107,230` `(` `94,873 )` `(` `811,663 )` `-` `$ 1,629,207` `$ 2,313,465` `1,597,033` `-` `1,597,033` `$ 3,910,498`		`($` `48 )` `-` `-` `-` `-` `-` `-` `($` `48 )` `($` `48 )` `-` `-` `-` `($` `48 )`	`$` `876,538` `-` `310,023` `310,023` `-` `-` `-` `$ 1,186,561` `$ 1,242,305` `-` `537,060` `537,060` `$ 1,779,365`	`($` `1,003` `)` `-` `-` `-` `-` `-` `-` `($` `1,003` `)` `($` `1,003` `)` `-` `-` `-` `($` `1,003` `)`	`$ 23,856,644` `107,230` `310,023` `417,253` `-` `(` `811,663 )` `-` `$ 23,462,234` `$ 24,202,236` `1,597,033` `537,060` `2,134,093` `$ 26,336,329`		`$` `288,168` `(` `53,448 )` `-` `(` `53,448 )` `-` `-` `(` `692 )` `$` `234,028` `$` `223,126` `(` `49,969 )` `-` `(` `49,969 )` `$` `173,157`	`$ 24,144,812` `53,782` `310,023` `363,805` `-` `(` `811,663` `)` `(` `692` `)` `$ 23,696,262` `$ 24,425,362` `1,547,064` `537,060` `2,084,124` `$ 26,509,486`

The accompanying notes are an integral part of these consolidated financial statements.

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PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax
Adjustments
Income and expenses having no effect on cash flows
Net gain on financial assets at fair value through profit or loss

Expected credit losses (gains)

Share of profit of associates and joint ventures accounted for
under equity method

Gain on disposal of property, plant and equipment

Loss (gain) on disposal of investment property

Property, plant and equipment transferred to expenses
Gain arising from lease modification

Depreciation

Amortization

Interest expense

Interest income

Dividend income

Changes in assets/liabilities relating to operating activities
Changes in operating assets
Financial assets at fair value through profit or loss - current
Current contract assets
Notes receivable
Accounts receivable
Accounts receivable - related parties
Other receivables
Inventories
Prepayments
Other current assets
Other non-current liabilities
Net changes in liabilities relating to operating activities
Current contract liabilities
Notes payable
Accounts payable
Other payables
Other payables - related parties
Receipts in advance
Other current liabilities
Provisions for liabilities - non-current
Net defined benefit liability - non-current
Other non-current liabilities, others
Cash inflow generated from operations
Interest received
Cash dividend received
Interest paid
Income tax paid
Net cash flows from operating activities Six months ended June 30
Notes
2021
2020
$
1,612,525 $
30,249
6(2)(27)
(
1,099,810 ) (
120,610 )
12(2)
459 (
237 )
6(7)
(
20,887 ) (
9,486 )
6(27)
(
12,198 ) (
27,132 )
6(27)
9,664 (
283 )
550
226
6(9)
(
13 ) (
53 )
6(8)(9)(11)(29)
393,051
362,470
6(12)(29)
31,496
31,014
6(28)
150,982
150,653
6(25)
(
4,163 ) (
7,118 )
6(3)(26)
(
85,211 ) (
39 )
(
1,492,456 )
227,157
56,983
201,162
(
40,800 ) (
24,846 )
444,781
47,642
(
255 ) (
561 )
64,202 (
23,416 )
2,480,406
1,005,849
6,985
37,139
(
2,930 ) (
3,931 )
(
42,693 ) (
31,521 )
(
132,291 ) (
129,734 )
191
6
(
328,274 ) (
379,023 )
(
68,441 ) (
344,426 )
- (
83,349 )
42,354
25,682
(
421 )
1,083
13,390
7,142
(
5,987 ) (
4,957 )
(
171 )
112
1,971,018
936,864
4,163
7,118
136,268
62,579
(
197,520 ) (
196,740 )
(
129,654 ) (
19,591 )
1,784,275
790,230

(Continued)

~8~

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars)

(UNAUDITED)

CASH FLOWS FROM INVESTING ACTIVITIES
Decrease in financial assets at amortised cost - current
Proceeds from capital reduction of non-current financial assets at
fair value through other comprehensive income
Decrease in financial assets at amortised cost-non-current
Acquisition of property, plant and equipment

Proceeds from disposal of property, plant and equipment
Proceeds from disposal of investment property
Increase in intangible assets

Increase in refundable deposits
Net cash flows from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Decrease in short-term borrowings

Increase in short-term notes and bills payable

Repayment of long-term borrowings

Proceeds from long-term borrowings

Increase in guarantee deposits received

Payments of lease liabilities

Change in non-controlling interest
Net cash flows used in financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period Six months ended June 30
Notes
2021
2020
$
184,152 $
61,707
8,241
-
69,049
279,746
6(8)
(
22,013 ) (
139,357 )
18,963
29,612
887
2,343
6(12)
(
1,363 ) (
942 )
(
13,322 ) (
4,551 )
244,594
228,558
6(33)
(
1,035,000 ) (
240,000 )
6(33)
20,000
249,905
6(33)
(
12,117,788 ) (
21,980,662 )
6(33)
8,680,430
19,128,284
6(33)
22,185
31,182
6(33)
(
224,662 ) (
182,650 )
- (
692 )
(
4,654,835 ) (
2,994,633 )
(
2,625,966 ) (
1,975,845 )
5,406,601
5,673,754
$
2,780,635 $
3,697,909

The accompanying notes are an integral part of these consolidated financial statements.

~9~

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2021 AND 2020

(Expressed in thousands of New Taiwan dollars, except as otherwise indicated)

(Reviewed, not audited)

1. HISTORY AND ORGANIZATION

(1) Prince Housing & Development Corp. (the “Company”) was established in September 1973, under the Company Act and other related regulations. The Company is primarily engaged in the construction, leasing and sale of public housing, commercial building, tourism/recreation place (children’s playground, water park, etc.) and parking lot/parking tower, and leasing and sale of real estate. The common shares of the Company have been listed on the Taiwan Stock Exchange since April 1991.
(2) The main activities of the Company and its subsidiaries (collectively referred herein as the “Group”) are provided in Note 4(3) B.

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORIZATION

These consolidated financial statements were reported to the Board of Directors on August 5, 2021.

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(1) Effect of the adoption of new issuances of or amendments to International Financial Reporting Standards (“IFRS”) as endorsed by the Financial Supervisory Commission (“FSC”)

New standards, interpretations and amendments endorsed by FSC effective from 2021 are as follows:

New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 4, ‘Extension of the temporary exemption from applying IFRS 9’ Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16, ‘ Interest Rate Benchmark Reform— Phase 2’ Amendment to IFRS 16, ‘Covid-19-related rent concessions beyond 30 June 2021’	January 1, 2021 January 1, 2021 April 1, 2021(Note)

Note ： Earlier application from January 1, 2021 is allowed by FSC.

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

~10~

(2) Effect of new issuances of or amendments to IFRSs as endorsed by the FSC but not yet adopted by

the Group

New standards, interpretations and amendments endorsed by the FSC effective from 2022 are as follows:

New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 3, ‘Reference to the conceptual framework’ Amendments to IAS 16, ‘Property, plant and equipment: proceeds before intended use’ Amendments to IAS 37, ‘Onerous contracts— cost of fulfilling a contract’ Annual improvements to IFRS Standards 2018–2020	January 1, 2022 January 1, 2022 January 1, 2022 January 1, 2022

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

(3) IFRSs issued by IASB but not yet endorsed by the FSC

New standards, interpretations and amendments issued by IASB but not yet included in the IFRSs as endorsed by the FSC are as follows:

endorsed by the FSC are as follows:
New Standards,Interpretations andAmendments	Effective date by International Accounting StandardsBoard
Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between an investor and its associate or joint venture’ IFRS 17, ‘Insurance contracts’ Amendments to IFRS 17, 'Insurance contracts' Amendments to IAS 1, ‘Classification of liabilities as current or non-current’ Amendments to IAS 1, ‘Disclosure of accounting policies’ Amendments to IAS 8, ‘Definition of accounting estimates’ Amendments to IAS 12, ‘Deferred tax related to assets and liabilities arising from a single transaction’	To be determined by International Accounting Standards Board January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023

endorsed by the FSC are as follows:

New Standards,Interpretations andAmendments

Effective date by
International Accounting
StandardsBoard

Amendments to IFRS 10 and IAS 28, ‘Sale or contribution of assets between
an investor and its associate or joint venture’
IFRS 17, ‘Insurance contracts’
Amendments to IFRS 17, 'Insurance contracts'
Amendments to IAS 1, ‘Classification of liabilities as current or non-current’
Amendments to IAS 1, ‘Disclosure of accounting policies’
Amendments to IAS 8, ‘Definition of accounting estimates’
Amendments to IAS 12, ‘Deferred tax related to assets and liabilities arising
from a single transaction’

To be determined by
International Accounting
Standards Board
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023
January 1, 2023

The above standards and interpretations have no significant impact to the Group’s financial condition and financial performance based on the Group’s assessment.

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The principal accounting policies adopted are consistent with Note 4 in the consolidated financial statements for the year ended December 31, 2020, except for the compliance statement, basis of preparation, basis of consolidation and additional policies as set out below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

~11~

(1) Compliance statement

A. The consolidated financial statements of the Group have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and the International Accounting Standard 34, ‘Interim financial reporting’ as endorsed by the FSC.
B. These consolidated financial statements are to be read in conjunction with the consolidated financial statements for the year ended December 31, 2020.

(2) Basis of preparation

A. Except for the following items, these parent company only financial statements have been prepared under the historical cost convention:
(a)Financial assets (including derivative instruments) at fair value through profit or loss.
(b)Financial assets at fair value through other comprehensive income.
(c)Defined benefit liabilities recognised based on the net amount of pension fund assets less unrecognised actuarial gains and present value of defined benefit obligation.
B. The preparation of financial statements in conformity with International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations, and SIC Interpretations as endorsed by the FSC (collectively referred herein as the “IFRSs”) requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the Company’s accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(3) Basis of consolidation

A. Basis for preparation of consolidated financial statements:
Basis for preparation for the current period financial statements and the 2020 consolidated financial statements is the same.
B. Subsidiaries included in the consolidated financial statements:

Name of investor	Name ofsubsidiary	Main business activities	Ownership (%)	Ownership (%)	Description
			June 30, 2021 100 100 100 50 99.65 100 99.68 100	December 31, 2020
Prince Housing & Development Corp.	Prince Property Management Consulting Co., Ltd. Cheng-Shi Investment Holdings Co., Ltd. Prince Housing Investment Co., Ltd. The Splendor Hotel Taichung Jin-Yi-Xing Plywood Co., Ltd. Prince Industrial Co., Ltd. Prince Real Estate Co., Ltd. Times Square International Holdings Co., Ltd.	Real estate managers General investments Overseas investment Hotels and catering Manufacture of plywood Development of public housing and building Real estate trading and leasing General investments		100 100 100 50 99.65 100 99.68 100	Note 2 Note 2 Note 1 Note 2 Note 2 Note 2

~12~

Name of investor	Name ofsubsidiary	Main business activities Management of apartment Security Construction Electricity and water pipe maintenance Construction Hotels and catering Hotels and catering Main business activities	Ownership (%)	Ownership (%)	Description
			June 30, December 31, 2021 2020 100 100 100 100 100 100 100 100 100 100 100 100 100 100 Ownership (%)	December 31, 2020
Prince Property Management Consulting Co., Ltd. Cheng-Shi Investment Holdings Co., Ltd. Times Square International Holdings Co., Ltd. Name of investor	Prince Apartment Management Maintain Co., Ltd. Prince Security Co., Ltd. Ta-Chen Construction & Engineering Corp. Prince Utility Co., Ltd. Cheng-Shi Construction Co., Ltd. Times Square International Hotel Corp. Times Square International Stays Corp. Name of subsidiary				Note 2 Note 2 Note 2 Note 2 Note 2 Description
			100 100 100 100 100 100 99.68 100 100 100 100 100 100 50 99.65 June30,2020
Prince Housing & Development Corp. Prince Property Management Consulting Co., Ltd. Cheng-Shi Investment Holdings Co., Ltd. Times Square International Holdings Co., Ltd.	Prince Property Management Consulting Co., Ltd. Cheng-Shi Investment Holdings Co., Ltd. Prince Housing Investment Co., Ltd. The Splendor Hotel Taichung Jin-Yi-Xing Plywood Co., Ltd. Prince Industrial Co., Ltd. Prince Real Estate Co., Ltd. Times Square International Holdings Co., Ltd. Prince Apartment Management Maintain Co., Ltd. Prince Security Co., Ltd. Ta-Chen Construction & Engineering Corp. Prince Utility Co., Ltd. Cheng-Shi Construction Co., Ltd. Times Square International Hotel Corp. Times Square International Stays Corp.	Real estate managers General investments Overseas investment Hotels and catering Manufacture of plywood Development of public housing and building Real estate trading and leasing General investments Management of apartment Security Construction Electricity and water pipe maintenance Construction Hotels and catering Hotels and catering			Note 2 Note 2 Note 1 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2 Note 2

Note 1: The Group does not directly or indirectly own above 50% of voting shares of The Splendor Hotel Taichung. However, as the Group has control over the finance and operations of the company, it is included in the consolidated financial statements.
Note 2: The financial statements of the entity as of and for the six months ended June 30, 2021 and 2020 were not reviewed by the independent auditors as the entity did not meet the definition of a significant subsidiary.
C. Subsidiaries not included in the consolidated financial statements: None.
D. Adjustments for subsidiaries with different balance sheet dates: None.
E. Significant restrictions: None.
F. Subsidiaries that have non-controlling interests that are material to the Group:
The Group’s non-controlling interest is not material and thus, is not applicable.

~13~

(4) Employee benefits

Pensions-defined contribution plan

Pension cost for the interim period is calculated on a year-to-date basis by using the pension cost rate derived from the actuarial valuation at the end of the prior financial year, adjusted for significant market fluctuations since that time and for significant curtailments, settlements, or other significant one-off events. Also, the related information is disclosed accordingly.

(5) Income taxes

The interim period income tax expense is recognised based on the estimated average annual effective income tax rate expected for the full financial year applied to the pre-tax income of the interim period, and the related information is disclosed accordingly.

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

The preparation of these consolidated financial statements requires management to make critical judgements in applying the Group’s accounting policies and make critical assumptions and estimates concerning future events. Assumptions and estimates are continually evaluated and adjusted based on historical experience and other factors. Such assumptions and estimates have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. The above information is addressed below:

(1) Critical judgements in applying the Group’s accounting policies

Investment property

The Group uses a portion of the property for its own use and another portion to earn rentals or for capital appreciation. When these portions cannot be sold separately and cannot be leased out separately under a finance lease, the property is classified as investment property only if the own-use portion represents an insignificant portion of the property.

(2) Critical accounting estimates and assumptions

Revenue recognition

Construction contract revenue should be recognised by reference to the stage of completion in the contract period using the percentage of completion method. Construction costs are recognised in the period incurred. The stage of completion of a contract is measured by the proportion of contract costs incurred for work performed up to the balance sheet date to the estimated total contract costs.

~14~

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

Cash and cash equivalents
	June 30, 2021		December 31, 2020	June 30,2020
Cash on hand and revolving funds	$	9,413	$ 9,581	$	9,272
Checking accounts and demand
deposits		2,470,818	4,776,962		3,006,207
Time deposits		-	60,000		100,000
Repurchase bonds		300,404	560,058		582,430
	$	2,780,635	$ 5,406,601	$	3,697,909

A. The Group transacts with a variety of financial institutions all with high credit quality to disperse credit risk, so it expects that the probability of counterparty default is remote.
B. The repurchase bonds held by the Group have high liquidity, so they were classified as cash equivalents.
C. Details of time deposits maturing in excess of three months, trust fund of presale construction and compensating balance of borrowings pledged to others as collateral which were classified as financial assets at amortised cost, are provided in Note 6(4).
D. Details of the interest income from the aforementioned pledged bank deposits which was recognised under interest income, are provided in Note 6(25).

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

Items Current items: Financial assets mandatorily measured at fair value through profit or loss Beneficiary certificates Valuation adjustment Items Non-current items: Financial assets mandatorily measured at fair value through profit or loss Listed (TSE and OTC) stocks Beneficiary certificates Valuation adjustments	June30,2021 2,389,674 $ 8,655 2,398,329 $ June 30,2021 264,520 $ 76,000 340,520 1,651,786 1,992,306 $	December31,2020 897,218 $ 7,130 904,348 $ December31,2020 264,520 $ 76,000 340,520 553,501 894,021 $	June30,2020
			1,284,569 $ 8,978
			1,293,547 $
			June 30,2020
			264,520 $ 76,000
			340,520 257,471
			597,991 $

~15~

A. The Group recognised net gains of $447,410, $162,356, $1,099,810 and $120,610 on financial assets at fair value through profit or loss for the three months and six months June 30, 2021 and 2020, respectively.
B. Details of the Group’s financial assets at fair value through profit or loss pledged to others as collateral are provided in Note 8.

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

Items Non-current items: Designation of equity instruments Listed stocks Unlisted stocks Valuation adjustments	June 30,2021 115,144 $ 884,822 999,966 1,775,260 2,775,226 $	December31,2020 June 30,2020 115,144 $ 115,144 $ 888,151 888,151 1,003,295 1,003,295 1,243,112 1,187,349 2,246,407 $ 2,190,644 $

A. The Group has elected to classify stocks that are considered to be strategic investments as financial assets at fair value through other comprehensive income. The fair value of such investments amounted to $2,775,226, $2,246,407 and $2,190,644 as at June 30, 2021, December 31, 2020 and June 30, 2020, respectively.
B. Amounts recognised in profit or loss and other comprehensive income in relation to the financial assets at fair value through other comprehensive income are listed below:

2021 2020 Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income 209,350 $ 362,375 $ Dividend income recognised in profit or loss held at end of period 31,081 $ 39 $ 2021 2020 Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income 537,060 $ 310,023 $ Dividend income recognised in profit or loss held at end of period 31,902 $ 39 $ Threemonths ended June 30, Six months ended June 30,	2021 2020 Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income 209,350 $ 362,375 $ Dividend income recognised in profit or loss held at end of period 31,081 $ 39 $ 2021 2020 Equity instruments at fair value through other comprehensive income Fair value change recognised in other comprehensive income 537,060 $ 310,023 $ Dividend income recognised in profit or loss held at end of period 31,902 $ 39 $ Threemonths ended June 30, Six months ended June 30,
Fair value change recognised in other comprehensive income Dividend income recognised in profit or loss held at end of period Equity instruments at fair value through other comprehensive income
	2021 537,060 $ 31,902 $
Fair value change recognised in other comprehensive income Dividend income recognised in profit or loss held at end of period

C. Details of the Group’s financial assets at fair value through other comprehensive income pledged to others as collateral are provided in Note 8.

~16~

(4) Financial assets at amortised cost

==> picture [477 x 154] intentionally omitted <==

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

Items June 30, 2021 December 31, 2020 June 30, 2020
Current items:
Time deposits maturing in excess of
three months $ 733,815 $ 916,587 $ 891,303
Trust account 42,993 44,373 111,833
$ 776,808 $ 960,960 $ 1,003,136
Non-current items:
Compensating balance $ 467,502 $ 536,551 $ 638,711
Pledged certificate of deposit 236,282 236,282 252,421
$ 703,784 $ 772,833 $ 891,132
----- End of picture text -----

A. As at June 30, 2021, December 31, 2020 and June 30, 2020, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the financial assets at amortised cost held by the Group was $1,480,592, $1,733,793 and $1,894,268, respectively.
B. Details of the Group’s financial assets at amortised cost pledged to others as collateral are provided in Note 8.
C. Information relating to credit risk of financial assets at amortised cost is provided in Note 12(2).

(5) Notes and accounts receivable

Notes and accounts receivable
			June 30,2021		December31,2020				June 30,2020
Notes receivable	$		66,734	$		25,934	$		83,187
Accounts receivable		$	581,244		$	1,026,490		$	707,965
Less: Allowance for doubtful
accounts	(		298)	(		304)	(		4,223)
		$	580,946		$	1,026,186		$	703,742
Accounts receivable - related
parties		$	4,304		$	4,049		$	4,257

A. The ageing analysis of notes receivable and accounts receivable that were past due but not impaired is as follows:

is as follows:
Without past due Up to 30 days 31 to 60 days 61 to 90 days Over 91 days	Notes Accounts receivable receivable 66,734 $ 584,876 $ - - - 203 - - - 469 66,734 $ 585,548 $ June 30,2021	Notes Accounts receivable receivable 25,934 $ 1,025,772 $ - 2,631 - 1,686 - 5 - 445 25,934 $ 1,030,539 $ December31,2020	June 30,2020
	Notes receivable 66,734 $ - - - - 66,734 $	Notes receivable 25,934 $ - - - - 25,934 $	Notes receivable 83,187 $ - - - - 83,187 $	Accounts receivable
				707,774 $ - - - 4,448
				712,222 $

The above ageing analysis was based on past due date.

~17~

B. As at June 30, 2021, December 31, 2020, June 30, 2020 and January 1, 2020, the balances of receivables (including notes receivable) from contracts with customers amounted to $584,261, $1,024,767, $705,064 and $769,233, respectively.
C. As at June 30, 2021, December 31, 2020 and June 30, 2020, without taking into account any collateral held or other credit enhancements, the maximum exposure to credit risk in respect of the amount that best represents the Group’s notes receivable were $66,734, $25,934 and $83,187, respectively; the maximum exposure to credit risk in respect of the amount that best represents the Group’s accounts receivable were $585,250, $1,030,235 and $707,999, respectively.
D. Information relating to credit risk of notes receivable and accounts receivable is provided in Note 12(2).
E. The Group does not hold any collateral pledged for notes and accounts receivable.

(6) Inventories (Eliminations and adjustments for consolidation were not included in the following information.)

Land held for construction site Construction in progress Buildings and land held for sale Prepayment for land Merchandise Land held for construction site Construction in progress Buildings and land held for sale Prepayment for land Merchandise	Allowance for Cost valuation loss $ 7,100,748 ($ 62,573) 1,814,521 - 5,103,516 ( 8,209) 228,635 - 20,965 - $14,268,385 ($70,782) June 30,2021 December31,2020	Bookvalue $ 7,038,175 1,814,521 5,095,307 228,635 20,965
		$14,197,603

	Allowance for Cost valuation loss $ 7,103,372 ($ 62,573) 1,611,172 - 7,785,578 ( 11,072) 228,635 - 22,897 - $16,751,654 ($73,645)	Bookvalue
		$ 7,040,799 1,611,172 7,774,506 228,635 22,897
		$16,678,009

~18~

Land held for construction site Construction in progress Buildings and land held for sale Prepayment for land Prepayment for buildings and land Merchandise	Allowance for Cost valuation loss $ 6,333,957 ($ 62,695) 3,089,284 - 8,810,401 ( 12,258) 223,135 - 552,085 - 23,372 - $19,032,234 ($ 74,953) June 30,2020	Bookvalue $ 6,271,262 3,089,284 8,798,143 223,135 552,085 23,372
		$ 18,957,281

A. The cost of inventories recognised as expense for the three months and six months ended June 30, 2021 and 2020 was $1,622,880, $1,618,342, $3,670,219 and $3,405,041, respectively, including the amounts of $0, $0, $2,863 and $1,554, respectively, that the Group wrote down from cost to net realisable value accounted for as cost of goods sold.
B. Details of the Group’s inventories pledged to others as collateral are provided in Note 8.
C. The interest capitalized as cost of inventory is as follows:

D. Details of significant inventories: (a)Buildings and land in progress Interest capitalized Interest capitalized Annual interest rate used for capitalization Interest paid before capitalization Annual interest rate used for capitalization Interest paid before capitalization	Threemonths ended June 30,	Threemonths ended June 30,
	2021 2020 84,799 $ 101,098 $ 14,283 $ 27,520 $ 0.79%-2.12% 0.82%-2.08% Six months ended June 30,	2020
		101,098 $
		27,520 $
		0.82%-2.08%
	2021 179,237 $ 28,255 $ 0.79%-2.23%	2020
		214,039 $
		63,386 $
		0.82%-2.22%

ails of significant inventories: Buildings and land in progress
Taipei branch Ling Ko Li Shing Section No. 1209, etc. Bali Dist Chung Chang Section No.222 and 211-1, etc. Taichung branch Beitun Dist. Rong-De Lot No.129, etc. Jin Shuei Dist. Wu Show Section No. 1037, No. 1038, No. 1040, etc.	June 30,2021 2,248,893 $ 689,501 2,938,394 759,193 $ 212,263 971,456	December 31,2020 2,123,820 $ 689,427 2,813,247 759,030 $ 212,263 971,293	June 30,2020
			2,031,950 $ 689,415
			2,721,365
			- $ 212,248
			212,248

~19~

==> picture [455 x 618] intentionally omitted <==

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

Tainan branch June 30, 2021 December 31, 2020 June 30, 2020
Jin Hua Section No. 1361 $ 689,315 $ 689,315 $ 688,265
Shan Chia Section No. 939, etc. 156,361 156,281 156,259
Others 3,738 3,738 3,738
849,414 849,334 848,262
Kaohsiung branch June 30, 2021 December 31, 2020 June 30, 2020
Prince Cloud E
$ 774,258 $ 696,080 $ 584,829
(Ren Wu New Hougang West Section No .90, etc. )
Prince Cloud B
364,370 364,370 364,370
(Ren Wu New Hougang West Section No .42, etc.)
Ren Wu New Hougang West Section No. 88
experimental house 72,933 72,933 72,933
Prince Castle (Building)
(Nanzi subsection No. 158, etc.) - - 1,685,126
1,211,561 1,133,383 2,707,258
Total buildings and land in process $ 5,970,825 $ 5,767,257 $ 6,489,133
(b)Undeveloped land held for construction site
Taipei branch June 30, 2021 December 31, 2020 June 30, 2020
Zhong Li Pu Ren Lot No. 720, etc. $ 140,156 $ 140,156 $ 140,156
Others 5,978 5,978 5,978
146,134 146,134 146,134
Taichung branch June 30, 2021 December 31, 2020 June 30, 2020
Wu Feng Lot No. 365~855 etc. $ 175,661 $ 175,661 $ 175,661
Song Quan Lot No. 164 etc. 137,697 137,697 137,697
Tu Ku Section No. 9-7, etc. 55,167 55,167 55,167
Song Chang Lot No. 577 etc. 19,912 19,912 19,912
Hou Long Zi Section No. 133-004 19,513 19,513 19,513
Others 10,353 14,461 14,461
418,303 422,411 422,411
Tainan branch June 30, 2021 December 31, 2020 June 30, 2020
Shan Zhong Lot No. 1468, 1475 & 1476 etc. $ 234,699 $ 234,699 $ 234,699
Xue Zhong Lot No. 679, etc. 50,798 50,798 50,798
Yong Kang Ding An Lot No. 879, etc. 28,610 28,610 28,610
Bei An Section No. 54-3, etc. 28,317 28,317 15,344
Chin An Section No. 373~377 15,139 15,139 15,139
Bao An Lot No. 882, etc. 10,325 10,325 10,325
Others 14,550 14,550 14,550
382,438 382,438 369,465
Kaohsiung branch June 30, 2021 December 31, 2020 June 30, 2020
Ren Wu New Hougang West Section No. 53, etc. $ 905,077 $ 905,077 $ 905,077
Ren Wu New Hougang West Section No. 30 & 52-74 407,357 407,357 407,357
Ren Wu Xiahai Section No. 642, 669 & 940, etc. 41,668 41,668 41,668
Da Hua Lot No. 434 & 436 13,923 13,923 13,923
1,368,025 1,368,025 1,368,025
Total undeveloped land held for construction site $ 2,314,900 $ 2,319,008 $ 2,306,035
----- End of picture text -----

~20~

(c)Buildings and land held for sale

(c)Buildings and land held for sale
(d)Prepayment for land (e)Prepayment for buildings and land Taipei branch Prince Hua Wei Taipei Shin Yi (Xin Zhuang Fuduxin) Prince W Prince Pine garden Prince Da Din Prince Guo Boa Prince Fu III Others Taichung branch Prince Xian Heng Prosperous New World Prince Holiday Mansion Ching Feng Jin Others Tainan branch Word of Peak Prince Flower Bo Five Jun Chan LV Prince WIN2 Future Prince Golden Age Others Kaohsiung branch Prince Castle (Building) Prince Castle (Townhouse) Prince Cloud C apartment Prince Cloud D Prince Dai Din Total buildings and land held for sale Tainan branch Ren Wu New Hougang West Section No. 20, etc. Taisugar Nanzi Section	June 30,2021 $ 939,597 539,633 138,082 17,390 12,025 - - - 1,646,727 June 30,2021 757,915 $ 233,658 9,058 - 6,118 1,006,749 June 30,2021 $ 365,827 169,912 19,725 11,837 4,145 2,292 573,738 June 30,2021 $ 1,017,741 863,944 25,911 22,206 5,866 1,935,668 $5,162,882 June 30,2021 $228,635 June 30,2021 $-	December 31,2020 $ 939,597 863,365 138,082 106,265 12,025 5,738 - 546 2,065,618 December 31,2020 888,888 $ 789,498 9,058 - 6,118 1,693,562 December 31,2020 $ 781,168 309,642 19,725 11,837 4,145 2,292 1,128,809 December 31,2020 $ 1,937,118 1,000,234 27,536 22,206 6,518 2,993,612 $7,881,601 December 31,2020 $228,635 December 31,2020 $-	June 30,2020
			$ 936,352 1,177,287 370,870 347,883 12,025 5,738 19,390 546
			2,870,091
			June 30,2020
			1,060,551 $ 1,804,098 9,058 20,759 6,118
			2,900,584
			June 30, 2020
			$ 1,404,364 481,307 19,725 75,031 5,302 2,292
			1,988,021 June 30, 2020
			$ - 1,086,982 28,347 22,206 7,170
			1,144,705
			$8,903,401
			June 30,2020
			$223,135
			June 30,2020
			$552,085

(Remainder of page intentionally left blank)

~21~

E. Disclosure of significant constructions:

(a) As of June 30, 2021, significant constructions are set forth below:

Name of construction contract Contract amount Tai She Zhi Shan Yuan - New construction 2,471,186 $ Construction of T.S. Landmark Plaza ($1.2 billion) 1,962,547 Chunghwa Telecom-a turnkey project in Nangang 1,955,238 Tainan Metropolitan Expressway 1,689,945 Beitou Shilin Science and Technology Park 1,231,886 No.3, Zhonglu, Taoyuan City 1,151,305 Urban land consolidation engineering of Bei An commercial district 1,043,280 Construction of T.S. Landmark Plaza ($0.8 billion) 1,013,032	Estimated construction cost 2,384,639 $ 1,911,716 1,857,476 1,614,046 1,170,292 1,093,740 991,116 984,315	Percentage Accumulated of completion constructionprofit/(loss) 94.32% 81,622 $ 90.30% 47,425 0.68% 665 79.53% 60,362 20.89% 12,867 54.05% 31,114 0.30% 156 95.62% 27,459

(b) As of December 31, 2020, significant constructions are set forth below:

Name of construction contract Tai She Zhi Shan Yuan - New construction Construction of T.S. Landmark Plaza ($1.2 billion) Chunghwa Telecom-a turnkey project in Nangang Tainan Metropolitan Expressway Beitou Shilin Science and Technology Park No.3, Zhonglu, Taoyuan City Construction of T.S. Landmark Plaza ($0.8 billion)	Contract amount 2,455,948 $ 1,962,547 1,955,238 1,689,945 1,231,886 1,151,305 1,013,032	Estimated construction cost 2,369,990 $ 1,911,716 1,857,476 1,614,046 1,170,292 1,093,740 984,315	Percentage Accumulated of completion constructionprofit/(loss) 90.21% 77,543 $ 88.31% 44,889 0.07% 68 70.86% 53,782 5.02% 3,092 38.91% 22,399 90.76% 26,064

~22~

(c) As of June 30, 2020, significant constructions are set forth below:

==> picture [668 x 27] intentionally omitted <==

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

Estimated Percentage Accumulated
Name of construction contract Contract amount construction cost of completion construction profit/(loss)
----- End of picture text -----

Tai She Zhi Shan Yuan - New construction	2,434,794	2,343,228	88.66%	79,351
Construction of T.S. Landmark Plaza ($1.2 billion)	1,792,455	1,745,827	81.67%	38,081
Tainan Metropolitan Expressway	1,681,905	1,606,206	54.28%	41,089
No.3, Zhonglu, Taoyuan City	1,151,305	1,093,740	24.31%	13,994
Construction of T.S. Landmark Plaza ($0.8 billion)	1,050,252	1,019,832	68.12%	20,722

~23~

(7) Investments accounted for under the equity method

==> picture [475 x 151] intentionally omitted <==

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

June 30, 2021 December 31, 2020 June 30, 2020
Carrying Percentage of Carrying Percentage of Carrying Percentage of
Name of associates amount ownership amount ownership amount ownership
Geng-Ding Co., Ltd. $ 294,943 30.00% $ 304,626 30.00% $ 296,413 30.00%
Uni-President Development Corp. 1,126,503 30.00% 1,136,641 30.00% 1,112,596 30.00%
PPG Investment Inc. 19,435 27.30% 13,507 27.30% 4,690 27.30%
Queen Holdings Ltd. 393,546 27.30% 401,781 27.30% 392,198 27.30%
Ming-Da Enterprise Co., Ltd. (Note 1) - - 8,042 20.00% 25,569 20.00%
Amida Truslink Assets Management Co., Ltd. (Note 2) - 45.21% - 45.21% - 45.21%
$1,834,427 $ 1,864,597 $ 1,831,466
----- End of picture text -----

Note 1: Ming-Da Enterprise Co., Ltd. had completed the liquidation process on May 31, 2021. Note 2: As of June 30, 2021, December 31, 2020 and June 30, 2020, the book value of the Company’s investment in Amida Truslink Assets Management Co., Ltd. was a credit balance, thus, the investment was transferred to other non-current liabilities which amounted to $139,754, $139,754 and $139,411, respectively.

Associates

A. The basic information of the associate that is material to the Group is as follows:

Companyname Uni President Development Corp.	Principal place ofbusiness Taiwan	Nature of Method of relationship measurement Strategic investments Equity method

B. The summarized financial information of the associate that is material to the Group is as follows: Balance sheet

Balance sheet
			Uni President			Development	Corp.
			June 30,2021	December31,2020			June	30,2020
Current assets		$	287,329		$	60,122	$	275,991
Non-current assets			7,269,056			7,463,340		7,651,015
Current liabilities	(		2,924,051)	(		3,085,745)	(	3,380,555)
Non-current liabilities	(		877,326)	(		648,912)	(	837,798)
Total net assets		$	3,755,008		$	3,788,805	$	3,708,653
Share in associate’s net assets		$	1,126,503		$	1,136,641	$	1,112,596

~24~

Statements of comprehensive income

Statements of comprehensive income
Revenue Profit for the period from continuing operations Total comprehensive income Revenue Profit for the period from continuing operations Total comprehensive income Dividends received from associates Dividends received from associates	Uni President DevelopmentCorp.
	Threemonths ended June 30,
	2021 2020 226,218 $ 205,590 $ 29,520 $ 14,601 $ 29,520 $ 14,601 $ - $ - $ Uni PresidentDevelopment Corp.
	Six months ended June 30,
	2021 460,031 $ 63,763 $ 63,763 $ - $	2020
		412,695 $
		28,094 $
		28,094 $
		- $

C. The carrying amount of the Group’s interests in all individually immaterial associates and the Group’s share of the operating results are summarized below:

As of June 30, 2021, December 31, 2020 and June 30, 2020, the carrying amount of the Group’s individually immaterial associates amounted to $568,170, $588,202 and $579,459, respectively.

ndividually immaterial associates amounted to $568,170, $588,202 and $579,459, respectively.	88,202 and $579,459, respectively.	88,202 and $579,459, respectively.
2021 2020 (Loss) profit for the period from continuing operations 1,548) ($ 11,580 $ Other comprehensive loss, net of tax - - Total comprehensive (loss) income 1,548) ($ 11,580 $ 2021 2020 Profit for the period from continuing operations 23,978 $ 7,145 $ Other comprehensive income, net of tax - - Total comprehensive income 23,978 $ 7,145 $ Threemonths ended June 30, Six months ended June 30,	Threemonths ended June 30,
	2021 23,978 $ - 23,978 $	2020 7,145 $ - 7,145 $

D. The Group’s investments had no quoted market price.

~25~

E. The Group’s investments accounted for using the equity method expressed herein was solely based on the investees’ financial statements of the same reporting periods which were not reviewed by independent auditors. For the three months and six months ended June 30, 2021 and 2020, the Group recognised share of profit (loss) of associates and joint venture accounted for using equity method of $3,868, $7,374, $20,887 and $9,486 and the investments as at June 30, 2021 and 2020, totalled $1,694,673 and $1,692,055, respectively. The disclosures in relation to certain investments accounted for using the equity method as at December 31, 2020, were solely based on investees’ financial statements which were audited by other independent auditors. The investments accounted for using the equity method as at December 31, 2020 was $580,160.
F. Details of the Group’s investments accounted for under the equity method pledged to others as collateral are provided in Note 8.

(8) Property, plant and equipment

A. Details of book values are as follows:

Land Buildings Machinery and equipment Computer and communication equipment Transportation equipment Office equipment Leasehold improvements Other equipment Construction in progress and equipment under acceptance	June 30,2021 2,850,275 $ 2,467,531 2,254 3,535 1,864 222,297 136,624 51,209 7,157 5,742,746 $	December31,2020 2,853,075 $ 2,525,370 2,807 2,591 2,305 239,839 159,483 48,433 1,268 5,835,171 $	June 30,2020
			2,853,075 $ 2,729,011 3,412 1,593 2,951 237,830 19,679 47,266 144,307
			6,039,124 $

~26~

B. Changes in property, plant and equipment for the period are as follows:

Opening net book amount 1,441,464 $ 1,411,611 1,920,287 1,863,552 16,566 61,672 10,255 866,506 836,997 98,616 1,268 $ 8,528,794	Additions Disposals Reclassifications - $ 2,800) ($ - $ - - - 82 4,845) ( - - - - - - - 1,430 - - - 655) ( - 8,668 6,450) ( - 583 - - 5,361 168) ( 218) ( 5,889 - - $22,013 ($ 14,918) 218) ($ Six months ended June 30,2021 Six months ended June 30,2020	Closing net book amount 1,438,664 $ 1,411,611 1,915,524 1,863,552 16,566 63,102 9,600 868,724 837,580 103,591 7,157
		$ 8,535,671

Opening net book amount 1,443,757 $ 1,411,611 2,648,765 1,868,809 16,631 60,261 12,597 851,915 73,533 94,847 12,074 $ 8,494,800	Additions Disposals Reclassifications - $ 1,139) ($ 1,154) ($ - - - 2,863 1,349) ( 88 - - 5,738 - 240) ( - 151 118) ( - - - - 13,414 28,503) ( 13,299 - - - 898 684) ( - 122,031 93) ( 10,295 $139,357 ($ 32,126) 28,266 $	Closing net book amount
		1,441,464 $ 1,411,611 2,650,367 1,874,547 16,391 60,294 12,597 850,125 73,533 95,061 144,307
		$ 8,630,297

~27~

Opening net book amount $ 618,853 639,616 13,759 59,081 7,950 626,667 677,514 50,183 $2,693,623	Additions Disposals Reclassifications $ 22,676 ($ 1,354) $ - 31,754 - - 553 - - 486 - - 333 ( 547) - 26,004 ( 6,244) - 23,442 - - 2,207 8) ( - $107,455 8,153) ($ - $ Six months endedJune30,2021 Six months ended June 30, 2020	Additions Disposals Reclassifications $ 22,676 ($ 1,354) $ - 31,754 - - 553 - - 486 - - 333 ( 547) - 26,004 ( 6,244) - 23,442 - - 2,207 8) ( - $107,455 8,153) ($ - $ Six months endedJune30,2021 Six months ended June 30, 2020	Closing net book amount $ 640,175 671,370 14,312 59,567 7,736 646,427 700,956 52,382
			$ 2,792,925

Opening net book amount $ 1,130,959 577,229 12,375 58,076 9,155 612,795 53,191 45,141 $2,498,921	Additions Disposals $ 56,648 ($ 796) 31,863 - 815 ( 211) 743 ( 118) 491 - 27,751 ( 28,251) 663 - 2,698 44) ( $121,672 29,420) ($	Reclassifications $ - - - - - - - - - $	Closing net book amount
			$ 1,186,811 609,092 12,979 58,701 9,646 612,295 53,854 47,795
			$2,591,173

C. Details of the Group’s property, plant and equipment pledged to others as collateral are provided in Note 8.

`－` (9) Leasing arrangements lessee

A. The Group leases various assets including offices, cafeterias, vehicles, private branch exchange telephone system and business area. Rental contracts are typically made for periods of 2 to 25 years. Lease terms are negotiated on an individual basis and contain various terms and conditions. The lease agreements do not impose covenants, but leased assets may not be used as security for borrowing purposes, and all or certain assets leased from associations and other related parties can be subleased to associations with the lessors’ agreement. Remaining lease assets cannot be lent, subleased, sold or granted in any different form to the third parties.

~28~

B. The carrying amount of right-of-use assets and the depreciation charge are as follows:

Land Buildings and structures Machinery and equipment (private branch exchange) Transportation equipment (business vehicles) Land Buildings and structures Machinery and equipment (private branch exchange) Transportation equipment (business vehicles) Land Buildings and structures Machinery and equipment (private branch exchange) Transportation equipment (business vehicles)	June30,2021 Bookvalue 14,576 $ 6,934,491 - 6,951,197 $ 2,130	December31,2020 June30,2020 Bookvalue Bookvalue 15,820 $ 22,801 $ 7,164,618 7,408,383 71 498 1,221 7,181,349 $ 7,432,903 $ 840 Three months endedJune30,	June30,2020
			Bookvalue
			22,801 $ 7,408,383 498 1,221
			7,432,903 $
		2021 2020 Depreciation expense Depreciation expense 622 $ 739 $ 120,573 99,280 - 213 121,354 $ 100,467 $ 159 235 Six months ended June 30,	2020
			Depreciation expense
			739 $ 99,280 213 235
			100,467 $
		2021 Depreciation expense 1,244 $ 241,235 71 242,875 $ 325	2020
			Depreciation expense
			1,480 $ 195,577 426 446
			197,929 $

C. For the three months and six months ended June 30, 2021 and 2020, the additions to right-of-use assets and lease liabilities were $14,172, $1,949,888, $14,723 and $1,953,995, respectively.

~29~

D. Information on profit or loss in relation to lease contracts is as follows:

Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets Expense on variable lease payments Profit from lease modification Items affecting profit or loss Interest expense on lease liabilities Expense on short-term lease contracts Expense on leases of low-value assets Expense on variable lease payments Profit from lease modification	2021 2020 31,949 $ 25,306 $ 939 876 206 134 - - 8 39 Three months endedJune30, Six months ended June 30,	2021 2020 31,949 $ 25,306 $ 939 876 206 134 - - 8 39 Three months endedJune30, Six months ended June 30,
	2021 64,338 $ 1,830 343 - 13	2020
		49,394 $ 1,898 344 - 53

E. For the three months and six months ended June 30, 2021 and 2020, the Group’s total cash outflow for leases amounted to $145,595, $116,918, $291,173 and $234,286, respectively.
F. Variable lease payments
(a) Some of the Group’s lease contracts contain variable lease payment terms that are linked to volume of business generated from a business area. For business areas, up to 1.57% of lease payments are on the basis of variable payment terms and are accrued based on the revenue. Variable payment terms are used for a variety of reasons, including additional revenue exceeding the base revenue, and rental income is calculated based on an agreed upon rate of revenue. Various lease payments that depend on revenue are recognised in profit or loss in the period in which the event or condition that triggers those payments occur.
(b) A 10% increase in the aggregate revenue of all business areas with such variable lease contracts would increase total lease payments by approximately 9.33%.
G. Extension and termination options
(a) Extension options are included in approximately 92.91% of the Group’s lease contracts pertaining to offices, business areas and cafeterias. These terms and conditions aim to maximise optional flexibility in terms of managing contracts.
(b) In determining the lease term, the Group takes into consideration all facts and circumstances that create an economic incentive to exercise an extension option or not to exercise a termination option. The assessment of lease period is reviewed if a significant event occurs which affects the assessment.

~30~

(10) Leasing arrangements – lessor

A. The Group leases various assets including offices, dormitories, long-term rental suites and parking lot. Rental contracts are typically made for periods ranging from 0.5 and 23 years. Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions. To secure leased assets, the lessee may be asked that leased assets may not be used as security for borrowing purposes or cannot be lent, subleased, sold or granted in any different form to the third parties by the lessors.
B. Gain arising from operating lease agreements for the three months and six months ended June 30, 2021 and 2020 are as follows:

Rent income Rent income arising from variable lease payments Rent income Rent income arising from variable lease payments	Three months ended June 30,	Three months ended June 30,
	2021 2020 119,568 $ 116,818 $ 5,259 $ 6,659 $ Six months ended June 30,
	2021 236,141 $ 20,663 $	2020 230,059 $ 21,096 $

C. The maturity analysis of the lease payments under the operating leases is as follows:

July 1, 2021 to June 30, 2022 July 1, 2022 to June 30, 2026 After July 1, 2027 July 1, 2020 to June 30, 2021 July 1, 2021 to June 30, 2025 After July 1, 2026	June 30,2021
	348,120 $ 376,083 98,847
	823,050 $
	June 30,2020
	368,123 $ 578,023 220,810
	1,166,956 $

(11) Investment property

A. Details of book values are as follows:

Land Leased assets-land Leased assets-buildings	June30,2021 207,077 $ 2,597,557 2,724,304 5,528,938 $	December31,2020 207,077 $ 2,600,824 2,774,309 5,582,210 $	June30,2020
			221,203 $ 2,599,704 2,819,151
			5,640,058 $

~31~

B. Changes in investment property for the period are as follows:

Six months ended June 30, 2021

==> picture [463 x 312] intentionally omitted <==

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

Opening net Closing net
Cost book amount Additions Disposals Reclassifications book amount
Land $ 207,077 $ - $ - $ - $ 207,077
Leased assets - land 2,600,824 - ( 3,267) - 2,597,557
Leased assets - buildings 3,958,822 - ( 9,994) - 3,948,828
$ 6,766,723 $ - ($ 13,261) $ - $ 6,753,462
Six months ended June 30, 2020
Opening net Closing net
Cost book amount Additions Disposals Reclassifications book amount
Land $ 265,550 $ - $ - ($ 44,347) $ 221,203
Leased assets - land 2,599,740 - ( 36) - 2,599,704
Leased assets - buildings 3,964,263 - ( 2,720) - 3,961,543
$ 6,829,553 $ - ($ 2,756) ($ 44,347) $ 6,782,450
Six months ended June 30, 2021
Opening net Closing net
Accumulated depreciation book amount Additions Disposals Reclassifications book amount
Leased assets - buildings $ 1,184,513 $ 42,721 ($ 2,710) $ - $ 1,224,524
Six months ended June 30, 2020
Opening net Closing net
Accumulated depreciation book amount Additions Disposals Reclassifications book amount
Leased assets - buildings $ 1,100,219 $ 42,869 ($ 696) $ - $ 1,142,392
----- End of picture text -----

C. Rental income from the lease of the investment property and direct operating expenses arising from the investment property are shown below:

from the investment property are shown below:
Rental revenue from the lease of the investment property Direct operating expenses arising from the investment property that generated rental income in the period Direct operating expenses arising from the investment property that did not generate rental income in the period Rental revenue from the lease of the investment property Direct operating expenses arising from the investment property that generated rental income in the period Direct operating expenses arising from the investment property that did not generate rental income in the period	Threemonths ended June 30,
	2021 2020 111,167 $ 111,812 $ 38,175 $ 35,647 $ - $ - $ Six months ended June 30,	2020
		111,812 $
		35,647 $
		- $
	2021 223,800 $ 75,142 $ - $	2020
		222,326 $
		72,475 $
		- $

Rental revenue from the lease of the investment property Direct operating expenses arising from the investment property that generated rental income in the period Direct operating expenses arising from the investment property that did not generate rental income in the period

~32~

D. As of June 30, 2021, December 31, 2020 and June 30, 2020, the fair value of the investment property held by the Group was $12,538,819, $12,578,033 and $12,621,767, respectively. The Group management estimated the fair value based on market evidence on transaction price of similar property and assessed value. Valuations were made using the income approach which is categorized within Level 3 in the fair value hierarchy.
E. Information about the investment property that was pledged to others as collateral is provided in Note 8.

(12) Intangible assets

A. Details of book values are as follows:

June 30, 2021 Service concession 1,963,549 $ Software 3,094 1,966,643 $	December31,2020 1,994,175 $ 2,601 1,996,776 $	June 30,2020
		2,024,802 $ 2,053 2,026,855 $

B. Changes in intangible assets for the period are as follows:

	Six months endedJune30,2021	Six months endedJune30,2021
Opening net book amount 2,868,372 $ 6,949 $ 2,875,321 Opening net book amount 2,868,372 $ 6,787 $2,875,159	Additions Disposals Reclassifications - $ - $ - $ 1,363 - - $1,363 - $ - $ Additions Disposals Reclassifications - $ - $ - $ 942 1,515) ( - $ 942 1,515) ($ - $ Six months endedJune30,2020 Six months endedJune30,2021		Closing net book amount
			2,868,372 $ 8,312
			$2,876,684
			Closing net book amount
			2,868,372 $ 6,214
			$ 2,874,586

Opening net book amount 874,197 $ 4,348 $ 878,545	Additions Disposals Reclassifications 30,626 $ - $ - $ 870 - - $ 31,496 - $ - $ Six months endedJune30,2020		Closing net book amount
			904,823 $ 5,218
			$ 910,041

Opening net book amount 812,944 $ 5,288 $ 818,232	Additions Disposals 30,626 $ - $ 388 1,515) ( $ 31,014 1,515) ($	Reclassifications - $ - - $	Closing net book amount
			843,570 $ 4,161
			$ 847,731

~33~

C. Details of amortization on intangible assets are as follows:

Operating costs Administrative expenses Operating costs Administrative expenses	2021 2020 15,313 $ 15,313 $ 444 208 15,757 $ 15,521 $ 2021 2020 30,626 $ 30,626 $ 870 388 31,496 $ 31,014 $ Threemonths ended June 30, Six months ended June 30,	2021 2020 15,313 $ 15,313 $ 444 208 15,757 $ 15,521 $ 2021 2020 30,626 $ 30,626 $ 870 388 31,496 $ 31,014 $ Threemonths ended June 30, Six months ended June 30,
		2020 30,626 $ 388 31,014 $

(13) Short-term borrowings

Short-term borrowings
Unsecured bank borrowings Secured bank borrowings Interest rate range	June30,2021 280,000 $ - 280,000 $ 0.70%~1.75%	December31,2020 1,185,000 $ 130,000 1,315,000 $ 1.10%~1.80%	June30,2020 1,609,000 $ 130,000
			1,739,000 $
			1.31%~1.80%

For details of pledged assets, please refer to Note 8. (14) Short-term notes and bills payable

Commercial papers Less: Unamortized discount Interest rate range	June30,2021 70,000 $ - 70,000 $ 1.30%~1.40%	December31,2020 June30,2020 50,000 $ 350,000 $ - 170) ( 50,000 $ 349,830 $ 1.40% 0.60%~1.40%	December31,2020 June30,2020 50,000 $ 350,000 $ - 170) ( 50,000 $ 349,830 $ 1.40% 0.60%~1.40%
			349,830 $
			0.60%~1.40%

A. The above commercial papers were issued by banks and bills financial institutions.

B. For details of pledged assets, please refer to Note 8.

~34~

(15) Bonds payable

Bonds payable
			June 30,2021	December31,2020			June 30,2020
2017 1st secured ordinary
bonds payable		$	2,000,000	$	2,000,000	$	2,000,000
2018 1st secured ordinary
bonds payable			2,500,000		2,500,000		2,500,000
			4,500,000		4,500,000		4,500,000
Less: Current portion	(		2,000,000)		-		-
		$	2,500,000	$	4,500,000	$	4,500,000

A.The Group issued secured ordinary bonds payable in June 2017. The significant terms of the bonds are as follows:
(a)Total issue amount: $2,000,000
(b)Issue price: At par value of $1,000 per bond
(c)Coupon rate: 1.05%
(d)Terms of interest repayment: The bonds interest is calculated on simple rate every year starting June 2017 based on the coupon rate.
(e)Repayment term: The bonds are repaid upon the maturity of the bonds.
(f)Period: 5 years, from June 19, 2017 to June 19, 2022.
(g)The way of security: Secured by Bank of Taiwan.
(h)Guarantee Bank: The bonds are guaranteed by Taipei Fubon Commercial Bank.
B. The Group issued secured ordinary bonds payable in June 2018. The significant terms of the bonds are as follows:
(a)Total issue amount: $2,500,000
(b)Issue price: At par value of $1,000 per bond
(c)Coupon rate: 0.84%
(d)Terms of interest repayment: The bonds interest is calculated on simple rate every year starting June 2018 based on the coupon rate.
(e)Repayment term: The bonds are repaid upon the maturity of the bonds.
(f)Period: 5 years, from June 15, 2018 to June 15, 2023.
(g)The way of security: Secured by Bank of Taiwan.
(h)Guarantee Bank: The bonds are guaranteed by Taipei Fubon Commercial Bank.

~35~

- (16) Long term borrowings

			June 30,2021		December31,2020	December31,2020			June 30,2020
Secured bank borrowings	$		4,645,879	$		7,153,667	$		8,041,256
Unsecured bank borrowings			610,000			740,000			342,800
			5,255,879			7,893,667			8,384,056
Less: Current portion	(		688,510)	(		989,177)	(		2,037,977)
			4,567,369			6,904,490			6,346,079
Commerical papers			-			800,000			920,000
Less: Unamortized discount			-	(		430)	(		510)
			-			799,570			919,490
		$	4,567,369		$	7,704,060		$	7,265,569
Range of maturity dates		2022.08.14~2027.11.02			2021.07.01~2027.11.02			2020.07.10~2027.11.02
Range of interest rates			1.33%~1.79%			0.40%~2.15%			0.40%~2.15%

A. For details of restrictive covenants, please refer to Note 9.
B. The Group and financial institutions entered into a contract for a syndicated borrowing. The Group shall redraw the revolving credit line to issue abovementioned commercial paper during the credit term.
C. For details of pledged assets, please refer to Note 8.

(17) Provisions - replacement cost

Provisions-replacement cost
			2021			2020
At January 1		$	113,024		$	102,554
Additions			24,199			19,788
Used	(		10,809)	(		12,646)
At June 30		$	126,414		$	109,696

The Group’s provisions for replacement cost pertains to the contract with National Taiwan University relating to the construction and operation of dormitories on Chang-Hsing St. and ShuiYuan Campus, which was provided based on the estimated replacement cost of each asset during the operation. Information on the significant contract terms relating to the operation cost is provided in Note 9(5).

~36~

(18) Pension

A. (a) The Company has a defined benefit pension plan in accordance with the Labor Standards Law, covering all regular employees’ service years prior to the enforcement of the Labor Pension Act on July 1, 2005 and service years thereafter of employees who chose to continue to be subject to the pension mechanism under the Law. Under the defined benefit pension plan, two units are accrued for each year of service for the first 15 years and one unit for each additional year thereafter, subject to a maximum of 45 units. Pension benefits are based on the number of units accrued and the average monthly salaries and wages of the last 6 months prior to retirement. The Company contributes monthly an amount equal to 2% of the employees’ monthly salaries and wages to the retirement fund deposited with Bank of Taiwan, the trustee, under the name of the independent retirement fund committee. Also, the Company would assess the balance in the aforementioned labor pension reserve account by December 31, every year. If the account balance is insufficient to pay the pension calculated by the aforementioned method to the employees expected to qualify for retirement in the following year, the Company will make contributions to cover the deficit by next March.
(b) For the aforementioned pension plan, the Group recognised pension costs of $169, $232, $338 and $464 for the three months and six months ended June 30, 2021 and 2020, respectively.
(c) Expected contributions to the defined benefit pension plans of the Company for the year ending December 31, 2022 amount to $2,842.
B. (a) Effective July 1, 2005, the Company has established a defined contribution pension plan (the “New Plan”) under the Labor Pension Act (the “Act”), covering all regular employees with R.O.C. nationality. Under the New Plan, the Company contributes monthly an amount based on 6% of the employees’ monthly salaries and wages to the employees’ individual pension accounts at the Bureau of Labor Insurance. The benefits accrued are paid monthly or in lump sum upon termination of employment.
(b) The pension costs under the defined contribution pension plans of the Company for the three months and six months ended June 30, 2021 and 2020 were $14,404, $12,979, $28,377 and $27,887, respectively.

(19) Share capital

A. Movements in the number of the Company’s ordinary shares outstanding are as follows: (Units: in thousand shares)

==> picture [450 x 31] intentionally omitted <==

B. As of June 30, 2021, the Company’s authorized capital was $20,000,000, and the paid-in capital was $16,233,261 with a par value of NT$10 per share, consisting of 1,623,326 thousand shares of ordinary stock.

~37~

C. As of June 30, 2021, December 31, 2020 and June 30, 2020, the Company’s subsidiary, Prince Apartment Management Maintain Co., Ltd., held the Company’s stocks to maintain equity interest in the Company. The amount of shares held by the subsidiary was all 655 thousand shares, the average par value was all NT$1.53 per share, and the fair value was NT$11.90, NT$11.50 and NT$10.10 per share, respectively.

(20) Capital surplus

Pursuant to the R.O.C. Company Act, capital surplus arising from paid-in capital in excess of par value on issuance of common stocks and donations can be used to cover accumulated deficit or to issue new stocks or cash to shareholders in proportion to their share ownership, provided that the Company has no accumulated deficit. Further, the R.O.C. Securities and Exchange Law requires that the amount of capital surplus to be capitalized mentioned above should not exceed 10% of the paid-in capital each year. Capital surplus should not be used to cover accumulated deficit unless the legal reserve is insufficient.

==> picture [477 x 118] intentionally omitted <==

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

Capital surplus
Share Treasury share
2021 premium transaction Others Total
At January 1, 2021 (At June 30, 2021) $ 1,375,442 $ 877,839 $ 7,232 $ 2,260,513
Capital surplus
Share Treasury share
2020 premium transaction Others Total
At January 1, 2020 (At June 30, 2020) $ 1,375,442 $ 877,839 $ 7,232 $ 2,260,513
----- End of picture text -----

(21) Retained earnings

A. In accordance with the Company’s Articles of Incorporation, the Company will take into consideration its future business plans and capital expenditures in determining the amount of earnings to be retained and to be distributed. In accordance with the Company Law, 10% of the current year’s earnings, after payment of all taxes and after offsetting accumulated deficit, shall be set aside as legal reserve until the balance of legal reserve is equal to that of issued share capital. Afterwards, an amount shall be appropriated or reversed as special reserve in accordance with applicable legal or regulatory requirements, along with prior years’ accumulated unappropriated retained earnings, and then distribution should be in the following order: stock dividend and bonus to shareholders are no less than 20% of the accumulated distributable earnings, in current period and cash dividend is at least 30% of the total stock dividend and bonus; the appropriation of earnings is proposed by the Board of Directors and resolved by the shareholders.
B. Except for covering accumulated deficit or issuing new stocks or cash to shareholders in proportion to their share ownership, the legal reserve shall not be used for any other purpose. The use of legal reserve for the issuance of stocks or cash to shareholders in proportion to their share ownership is permitted, provided that the distribution of the reserve is limited to the portion in excess of 25% of the Company’s paid-in capital.

~38~

C. The Company recognised dividends distributed to owners amounting to $811,663 ($0.50 (in dollars) per share) for the six months ended June 30. On August 5, 2021, the shareholders resolved that total dividends for the distribution of earnings for 2020 was $649,330 at $0.4 (in dollars) per share.

(22) Other equity items

dollars) per share. Other equity items
At January 1, 2021 Revaluation - gross At June 30, 2021 At January 1, 2020 Revaluation - gross At June 30, 2020	Unrealised gains Currency (losses) on valuation translation 1,242,305 $ 48) ($ 537,060 - 1,779,365 $ 48) ($ Unrealised gains Currency (losses) onvaluation translation 876,538 $ 48) ($ 310,023 - 1,186,561 $ 48) ($	Total
		1,242,257 $ 537,060
		1,779,317 $

(23) Maturity analysis of assets and liabilities

The construction related assets and liabilities are classified as current and non-current based on the operating cycle. Related recognised amount expected to be recovered or repaid within or after 12 months from the balance sheet date is as follows:

June 30, 2021 Assets Notes receivable, net Accounts receivable, net (including related parties) Contract assets Inventories Liabilities Contract liabitities Notes payable Long-term notes and accounts payable	Within 12 months 61,793 $ 256,728 39,179 7,386,005 7,743,705 $ 469,399 $ 770,358 - 1,239,757 $	Over 12 months - $ 280,128 104,620 6,790,633 7,175,381 $ 166,111 $ 662,739 11,456 840,306 $	Total
			61,793 $ 536,856 143,799 14,176,638
			14,919,086 $
			635,510 $ 1,433,097 11,456
			2,080,063 $

~39~

Within 12 months Over 12 months Total

	Within 12 months	Over 12 months	Total
December 31, 2020 Assets Notes receivable, net Accounts receivable, net (including related parties) Contract assets Inventories Liabilities Contract liabitities Notes payable Long-term notes and accounts payable June 30, 2020 Assets Notes receivable, net Accounts receivable, net (including related parties) Contract assets Inventories Liabilities Contract liabitities Notes payable Accounts payable Long-term notes and accounts payable	19,390 $ 686,429 85,881 5,194,285 5,985,985 $ 461,026 $ 955,500 - 1,416,526 $ Within 12 months 10,282 $ 520,809 35,976 8,995,135 9,562,202 $ 346,874 $ 1,940 614,179 - 962,993 $	180 $ 260,227 114,901 11,460,827 11,836,135 $ 253,259 $ 738,481 11,456 1,003,196 $ Over 12 months 67,887 $ 116,890 103,688 9,938,774 10,227,239 $ 310,199 $ - 978,738 11,456 1,300,393 $	19,570 $ 946,656 200,782 16,655,112 17,822,120 $ 714,285 $ 1,693,981 11,456 2,419,722 $ Total
			78,169 $ 637,699 139,664 18,933,909
			19,789,441 $
			657,073 $ 1,940 1,592,917 11,456
			2,263,386 $

(24) Operating revenue

Operating revenue
Revenue from contracts with customers Other - rental revenue	Three months endedJune30,
	2021 2,553,195 $ 124,827 2,678,022 $	2020
		2,056,266 $ 123,477
		2,179,743 $

~40~

		Six months ended June 30,	Six months ended June 30,	Six months ended June 30,
		2021		2020
Revenue from contracts with customers	$	5,653,367	$	4,560,941
Other - rental revenue		256,804		251,155
	$	5,910,171	$	4,812,096

A. The revenue from contracts with customers arises from the transfer of goods and services at a

point in time or over time in the following business lines:

Three months ended June 30, 2021 Revenue from external customer contracts Timing of revenue recognition At a point in time Over time Three months ended June 30, 2020 Revenue from external customer contracts Timing of revenue recognition At a point in time Over time Six months ended June 30, 2021 Revenue from external customer contracts Timing of revenue recognition At a point in time Over time Six months ended June 30, 2020 Revenue from external customer contracts Timing of revenue recognition At a point in time Over time	Building and land sales 1,743,243 $ 1,743,243 $ - 1,743,243 $ Building and land sales 810,551 $ 810,551 $ - 810,551 $ Building and land sales 3,837,532 $ 3,837,532 $ - 3,837,532 $ Building and land sales 1,984,519 $ 1,984,519 $ - 1,984,519 $	Construction 475,353 $ - $ 475,353 475,353 $ Construction 941,054 $ - $ 941,054 941,054 $ Construction 987,848 $ - $ 987,848 987,848 $ Construction 1,769,100 $ - $ 1,769,100 1,769,100 $	Hotel management 187,266 $ - $ 187,266 187,266 $ Hotel management 163,666 $ - $ 163,666 163,666 $ Hotel management 535,763 $ - $ 535,763 535,763 $ Hotel management 516,483 $ - $ 516,483 516,483 $	BOT business 70,193 $ - $ 70,193 70,193 $ BOT business 65,115 $ - $ 65,115 65,115 $ BOT business 135,415 $ - $ 135,415 135,415 $ BOT business 125,042 $ - $ 125,042 125,042 $	Propertymanagement 77,140 $ - $ 77,140 77,140 $ Propertymanagement 75,880 $ - $ 75,880 75,880 $ Propertymanagement 156,809 $ - $ 156,809 156,809 $ Propertymanagement 165,797 $ - $ 165,797 165,797 $	Total
						2,553,195 $
						1,743,243 $ 809,952
						2,553,195 $
						Total
						2,056,266 $
						810,551 $ 1,245,715
						2,056,266 $
						Total
						5,653,367 $
						3,837,532 $ 1,815,835
						5,653,367 $
						Total
						4,560,941 $
						1,984,519 $ 2,576,422
						4,560,941 $

~41~

B. Aggregate amount of the transaction price allocated to and the year expected to recognise revenue for the unsatisfied performance obligations in relation to the contracted significant construction contracts as of June 30, 2021, December 31, 2020 and June 30, 2020 are as follows:

	Yearexpected torecogniserevenue	Contracted amount	Contracted amount
June 30, 2021	2021~2024	$	5,148,066
December 31, 2020	2021~2024		4,883,160
June 30, 2020	2020~2021		2,628,569

C. Contract assets and liabilities

The Group has recognised the following revenue-related contract assets and liabilities:

Contract assets: Contract assets - construction contracts Contract liabilites: Contract liabilities - buildings and land sales contracts Contract liabilities - construction contracts Contract liabilities - Hotel operation contracts Contract liabilities - BOT business	June 30, 2021 143,799 $ 470,094 $ 165,416 129,489 19,660 784,659 $	December 31,2020 200,782 $ 458,386 $ 255,899 142,814 59,851 916,950 $	June 30,2020 139,664 $ 346,874 $ 310,199 116,564 19,169 792,806 $	January1,2020
				340,826 $
				496,296 $ 225,508 146,767 53,969
				922,540 $

Revenue recognised that was included in the contract liability balance at the beginning of the period:

Revenue recognised that was included in the contract liability balance at the beginning of the period Building and land sales contracts Hotel operation contracts Revenue recognised that was included in the contract liability balance at the beginning of the period Building and land sales contracts Construction contracts Hotel operation contracts BOT business	Three months endedJune30,	Three months endedJune30,
	2021 2020 61,461 $ 57,827 $ 2 22 61,463 $ 57,849 $ Six months ended June 30,	2020
		57,827 $ 22
		57,849 $
	2021 442,027 $ 255,899 142,345 59,851 900,122 $	2020
		447,814 $ 225,508 145,542 53,969
		872,833 $

~42~

D. The amortisation amounts recognised for the three months ended June 30, 2021 and 2020 relating to the incremental costs of obtaining contracts (deferred sales commissions which were shown as other current assets) for the three months and six months ended June 30, 2021 and 2020 were $0, $650,$0 and $690, respectivley.

(25) Interest income

Interest income
Interest income from bank deposits Other interest income Interest income from bank deposits Other interest income	2021 2020 1,897 $ 3,210 $ 229 516 2,126 $ 3,726 $ Threemonths ended June 30, Six months ended June 30,
	2021 3,739 $ 424 4,163 $	2020
		6,065 $ 1,053
		7,118 $

(26) Other income

Other income
Dividend income Government grant revenue (Note) Payables transferred to other income Income from confiscated guarantee due to a default Insurance claims income Other income Dividend income Government grant revenue (Note) Payables transferred to other income Income from confiscated guarantee due to a default Compensation for road expropriation Insurance claims income Other income	Three months endedJune30,
	2021 2020 84,390 $ 39 $ 15,762 43,342 13,648 93,634 - 400 1,800 - 7,179 11,443 122,779 $ 148,858 $ Six months ended June 30,	2020
		39 $ 43,342 93,634 400 - 11,443
		148,858 $
	2021 85,211 $ 35,382 31,163 - 8,695 1,800 21,212 183,463 $	2020
		39 $ 43,342 94,550 400 - - 21,036
		159,367 $

Note: The Group’s hotel segment is eligible for the “Directions for Tourism Bureau to Subsidize Employee Salaries of Tourist Hotels and Hotels” from the Tourism Bureau, M.O.T.C., whereby the Group recognised government grant revenue arising from subsidies for wages and salaries.

~43~

(27) Other gains and losses

Other gains and losses
			Threemonths	ended June 30,
			2021			2020
Net gains on financial assets at fair value through
profit or loss		$	447,410		$	162,356
Gains on disposals of property, plant and
equipment (including investment property)			12,385			1,926
Net currency exchange gain			9			12
Others			20	(		200)
		$	459,824		$	164,094
			Six months ended June 30,
			2021			2020
Net gains on financial assets at fair value through
profit or loss		$	1,099,810		$	120,610
Gains on disposals of property, plant and
equipment (including investment property)			2,534			27,415
Net currency exchange gain			9			116
Others	(		2)			141
		$	1,102,351		$	148,282

(28) Finance costs

Finance costs
			Threemonths	ended	June 30,
			2021		2020
Interest expense:
Bank borrowings		$	29,313	$	46,402
Lease liability			31,949		25,306
Commercial papers			1,058		6,089
Ordinary bonds			22,367		23,160
Others			112		141
Other finance expenses			300		300
			85,099		101,398
Less：Capitalization of qualifying assets	(		14,283)	(	27,520)
		$	70,816	$	73,878

~44~

					Six months ended June 30,	Six months ended June 30,	Six months ended June 30,	Six months ended June 30,
					2021			2020
Interest expense:
Bank borrowings			$		64,922	$		106,859
Lease liability					64,338			49,394
Commercial papers					4,956			11,862
Ordinary bonds					44,078			44,711
Others					943			1,213
Other finance expenses					600			600
					179,837			214,639
Less：Capitalization of qualifying	assets	(			28,255) (			63,386)
			$		151,582	$		151,253
Expenses by nature
		Three	months endedJune30,				2021
	Operatingcosts			Operatingexpenses				Total
Employee benefit expense
Wages and salaries	$	141,342		$	183,552		$	324,894
Labor and health insurance fees		15,095			16,385			31,480
Pension costs		7,259			7,314			14,573
Directors’ remuneration		-			28,518			28,518
Other employee benefit expense		4,671			8,593			13,264
	$	168,367		$	244,362		$	412,729
Depreciation charges	$	21,423		$	173,608		$	195,031

Amortization charges	$	15,313		$	444		$	15,757
		Three	months ended June 30,				2020
	Operatingcosts			Operatingexpenses				Total
Employee benefit expense
Wages and salaries	$	147,003		$	90,158		$	237,161
Labor and health insurance fees		13,518			15,108			28,626
Pension costs		6,856			6,355			13,211
Directors’ remuneration		-			6,687			6,687
Other employee benefit expense		1,681			6,159			7,840
	$	169,058		$	124,467		$	293,525
Depreciation charges	$	21,502		$	161,112		$	182,614
Amortization charges	$	15,313		$	208		$	15,521

Less ： Capitalization of qualifying assets (29) Expenses by nature

~45~

Operatingcosts Operatingexpenses Total 283,727 $ 378,014 $ 661,741 $ 30,425 30,431 60,856 14,651 14,064 28,715 - 61,074 61,074 14,784 14,757 29,541 343,587 $ 498,340 $ 841,927 $ 42,721 $ 350,330 $ 393,051 $ 30,626 $ 870 $ 31,496 $ Six months ended June 30,2021 Six months ended June 30, 2020	Operatingcosts Operatingexpenses Total 283,727 $ 378,014 $ 661,741 $ 30,425 30,431 60,856 14,651 14,064 28,715 - 61,074 61,074 14,784 14,757 29,541 343,587 $ 498,340 $ 841,927 $ 42,721 $ 350,330 $ 393,051 $ 30,626 $ 870 $ 31,496 $ Six months ended June 30,2021 Six months ended June 30, 2020	Operatingcosts Operatingexpenses Total 283,727 $ 378,014 $ 661,741 $ 30,425 30,431 60,856 14,651 14,064 28,715 - 61,074 61,074 14,784 14,757 29,541 343,587 $ 498,340 $ 841,927 $ 42,721 $ 350,330 $ 393,051 $ 30,626 $ 870 $ 31,496 $ Six months ended June 30,2021 Six months ended June 30, 2020
Operating costs 304,677 $ 29,101 14,556 - 8,436 356,770 $ 42,869 $ 30,626 $	Operating expenses 211,672 $ 28,962 13,795 8,606 11,790 274,825 $ 319,601 $ 388 $	Total
		516,349 $ 58,063 28,351 8,606 20,226
		631,595 $
		362,470 $
		31,014 $

A. According to the Articles of Incorporation of the Company, when distributing earnings, the Company shall distribute compensation to the employees and pay remuneration to the directors that account for at least 2% and no higher than 3%, respectively, of distributable profit of the current period. If a company has accumulated deficit, earnings should be channeled to cover losses.

Employees’ compensation can be distributed in the form of shares or in cash. Qualified employees, including the employees of subsidiaries of the company meeting certain specific requirements, are entitled to receive aforementioned stock or cash.

Abovementioned distributable profit of the current period refers to the pre-tax profit before deduction of employees’ compensation and directors’ remuneration.

B. For the three months and six months ended June 30, 2021 and 2020, employees’ compensation was accrued at $77,304, $13,134, $167,300 and $13,134, respectively; while directors’ remuneration was accrued at $26,299, $4,468, $56,916 and $4,468, respectively. The aforementioned amounts were recognised in salary expenses.

The employees’ compensation and directors’ remuneration were estimated and accrued based on the percentage as prescribed in the Company’s Articles of Incorporation and distributable profit of current period for the six months ended June 30, 2021.

~46~

Employees’ compensation and directors’ remuneration of 2019 as resolved at the meeting of Board of Directors were in agreement with those amounts recognised in the 2019 financial statements. The employees’ compensation will be distributed in the form of cash, and the employees’ compensation for the year ended December 31, 2020 has yet to be distributed. Information about employees’ compensation and directors’ remuneration of the Company as resolved at the meeting of Board of Directors will be posted in the “Market Observation Post System” at the website of the Taiwan Stock Exchange.

(30) Income tax

A. Income tax expense (benefit)

Components of income tax expense (benefit):

ome tax Income tax expense (benefit) Components of income tax expense (benefit):
			Threemonths	ended June 30,
			2021		2020
Current tax:
Current tax on profits for the period		$	52,636	($	29,719)
Tax on undistributed surplus earnings			-		2,109
Over provision of prior year’s income tax	(		9,021)	(	3,549)
Land value increment tax recognised in
income tax for the period			5,388		3,415
Total current tax			49,003	(	27,744)
Deferred tax:
Origination and reversal of temporary differences			222		39,706
Loss carryforward	(		31,803)	(	36,587)
Total deferred tax	(		31,581)		3,119
Income tax expense (benefit)		$	17,422	($	24,625)
			Six months ended June 30,
			2021		2020
Current tax:
Current tax on profits for the period		$	117,537	($	20,096)
Tax on undistributed surplus earnings			-		2,109
Over provision of prior year’s income tax	(		9,021)	(	3,549)
Land value increment tax recognised in
income tax for the period			11,602		11,953
Total current tax			120,118	(	9,583)
Deferred tax:
Origination and reversal of temporary differences	(		88)		43,895
Loss carryforward	(		54,569)	(	57,845)
Total deferred tax	(		54,657)	(	13,950)
Income tax expense (benefit)		$	65,461	($	23,533)

B. The Company’s income tax returns through 2018 have been assessed and approved by the Tax Authority.

~47~

(31) Earnings per share

Earnings per share
		Three months endedJune30,2021
			Weighted average
			number of ordinary	Earnings
			shares outstanding	per	share
Basic earnings per share	Amount after tax		(shares in thousands)	(in dollars)
Profit attributable to ordinary shareholders
of the parent	$	764,769	1,622,671	$	0.47
Diluted earnings per share
Profit attributable to ordinary shareholders	$	764,769	1,622,671
of the parent
Assumed conversion of all dilutive
potential ordinary shares
Employees’ compensation		-	6,496
Profit attributable to ordinary shareholders
of the parent plus assumed conversion
of all dilutive potential ordinary shares	$	764,769	1,629,167	$	0.47
		Three months endedJune30,2020
			Weighted average
			number of ordinary	Earnings
			shares outstanding	per	share
Basic earnings per share	Amount after tax		(shares in thousands)	(in dollars)
Profit attributable to ordinary shareholders
of the parent	$	125,332	1,622,671	$	0.08
Diluted earnings per share
Profit attributable to ordinary shareholders	$	125,332	1,622,671
of the parent
Assumed conversion of all dilutive
potential ordinary shares
Employees’ compensation		-	1,300
Profit attributable to ordinary shareholders
of the parent plus assumed conversion
of all dilutive potential ordinary shares	$	125,332	1,623,971	$	0.08

~48~

		Six months endedJune30,2021	Six months endedJune30,2021	Six months endedJune30,2021
			Weighted average
			number of ordinary	Earnings
			shares outstanding	per share
Basic earnings per share	Amount after tax		(shares in thousands)	(in dollars)
Profit attributable to ordinary shareholders
of the parent	$	1,597,033	1,622,671	$	0.98
Diluted earnings per share
Profit attributable to ordinary shareholders	$	1,597,033	1,622,671
of the parent
Assumed conversion of all dilutive
potential ordinary shares
Employees’ compensation		-	17,557
Profit attributable to ordinary shareholders
of the parent plus assumed conversion
of all dilutive potential ordinary shares	$	1,597,033	1,640,228	$	0.97
		Six months endedJune30,2020
			Weighted average
			number of ordinary	Earnings
			shares outstanding	per share
Basic earnings per share	Amount aftertax		(sharesinthousands)	(indollars)
Profit attributable to ordinary shareholders
of the parent	$	107,230	1,622,671	$	0.07
Diluted earnings per share
Profit attributable to ordinary shareholders	$	107,230	1,622,671
of the parent
Assumed conversion of all dilutive
potential ordinary shares
Employees’ compensation		-	6,109
Profit attributable to ordinary shareholders
of the parent plus assumed conversion
of all dilutive potential ordinary shares	$	107,230	1,628,780	$	0.07

~49~

(32) Supplemental cash flow information

Investing and financing activities with no cash flow effects:

Supplemental cash flow information Investing and financing activities with no cash flow effects:
Prepayment transferred to property, plant and equipment Prepayment for equipment (shown as ‘other non-current assets-others’) transferred to property, plant and equipment Investment properties transferred to land held for constuction site Property, plant and equipment transferred to investment properties Declared cash dividends not yet distributed Bonds payable transferred to long-term liabilities, current portion	2021 2020 332 $ - $ - $ 29,420 $ - $ 45,501 $ - $ 1,154 $ - $ 811,663 $ 2,000,000 $ - $ Six months endedJune30,
		29,420 $
		45,501 $
		1,154 $
		811,663 $
		- $

(33) Changes in liabilities from financing activities

Short-term borrowings Short-term notes and bills payable Bonds payable Long-term borrowings Long-term notes and accounts payable Guarantee deposits received Lease liability Liabilities from financing activities - gross Short-term borrowings Short-term notes and bills payable Bonds payable Long-term borrowings Long-term notes and accounts payable Guarantee deposits received Lease liability Dividends payable Liabilities from financing activities - gross	Changes in cash flow from financing January1,2021 activities 1,315,000 $ 1,035,000) ($ 50,000 20,000 4,500,000 - 8,693,237 3,437,358) ( 808,301 - 160,581 22,185 7,861,183 224,662) ( 23,388,302 $ 4,654,835) ($ Changes in cash flow from financing January1,2020 activities 1,979,000 $ 240,000) ($ 99,925 249,905 4,500,000 - 12,155,924 2,852,378) ( 808,301 - 148,959 31,182 6,279,197 182,650) ( - - 25,971,306 $ 2,993,941) ($	Changes in other non-cash items (Note) - $ - - - - - 12,710 12,710 $ Changes in other non-cash items (Note) - $ - - - - - 1,948,492 811,663 2,760,155 $	June30,2021
			280,000 $ 70,000 4,500,000 5,255,879 808,301 182,766 7,649,231
			18,746,177 $
			June30,2020
			1,739,000 $ 349,830 4,500,000 9,303,546 808,301 180,141 8,045,039 811,663
			25,737,520 $

Note ： Changes in other non-cash items arose from the additions and reductions in lease liabilities.

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7. RELATED PARTY TRANSACTIONS

(1) Names of related parties and relationship with the Group

LATED PARTY TRANSACTIONS
Names of related parties and relationship with the Group

Names of related parties
Uni-President Development Corp.
(Uni-President Development)
Amida Trustlink Assets Management Co., Ltd.
(Amida Trustlink Assets)
President International Development Corp.
(President International Development)
Tone Sang Construction Corp.
Tone Sang Construction
President Chain Store Corp.
(President Chain Store)
C-maan Health Limited Company
(C-maan Health)
Man Strong Manpower MGT Co., Ltd.
(Man Strong Manpower)
Representative of Kao Chuan Investment Co., Ltd.
(Representative of Kao Chuan Investment)
President Fair Development Crop.
(President Fair Development Manpower)

Relationship withthe Company

Associate
Associate
Other related party
Other related party
Other related party
Other related party
Other related party
Other related party
Other related party

(2) Significant related party transactions and balances

A. Sales of goods:

(a)

Construction subcontracting: `－`Other related parties Construction subcontracting: `－`Other related parties	Three months endedJune30,	Three months endedJune30,
	2021 2020 2,828 $ 434 $ Six months endedJune30,	2020
		434 $
	2021 3,106 $	2020
		1,594 $

The contract prices of construction for related parties are based on expected construction cost plus reasonable management expenses and profit, and are determined based on mutual agreements. The construction payments are collected based on the contract terms. As of June 30, 2021, December 31, 2020 and June 30, 2020, the status of the construction for the related parties undertaken by the Group was as follows:

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Other related parties:			June 30,2021	December	December	31,2020			June 30,2020
Total amount of construction
contracts that were signed
but had not been settled yet		$	59,341		$	4,286		$	241,418
Construction payments received	(		6,350)	(		2,952)	(		241,087)
Construction payments receivable		$	52,991		$	1,334		$	331

(b)

`－`Other related parties `－`Other related parties `－`President Chain Store Corp. Rental income: `－`President Chain Store Corp. Rental income:	2021 2020 13,379 $ 13,430 $ 4,160 4,090 17,539 $ 17,520 $ 2021 2020 26,759 $ 26,772 $ 8,338 8,145 35,097 $ 34,917 $ Threemonths ended June 30, Six months ended June 30,

Rent is determined by mutual agreements and is collected monthly.

B. Accounts payable

Accounts payable
Other related parties	June 30,2021 4,304 $	December31,2020 4,049 $	June 30,2020
			4,257 $

C. Lease transactions - lessee

(a)

i. The Group leases business area from the associate, Uni-President Development Corp. The lease terms are between 2011 and 2035, and all these lease agreements are renewable at the end of the lease period. Rental payment is calculated based on an agreed upon rate of revenue.
ii. The Group leases office from the other related parties, President International Development Corp. These leases have terms expiring between 2018 and 2023, and all these lease agreements are renewable at the end of the lease period.

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(b) Lease liabilities

i. Outstanding balance:

ease liabilities Outstanding balance:
ii. Interest expense: June30,2021 Lease liabilities - current: Uni-President Development Corp. 329,314 $ President International Development Corp. 25,007 354,321 $ June30,2020 Lease liabilities - non-current: Uni-President Development Corp. 5,205,382 $ President International Development Corp. 20,192 5,225,574 $ Interest expense: Uni-President Development Corp. President International Development Corp, Interest expense: Uni-President Development Corp. President International Development Corp,	June30,2021		December31,2020 June30,2020 325,845 $ 321,688 $ 24,732 24,460 350,577 $ 346,148 $ December31,2020 June 30, 2020 5,370,684 $ 5,534,715 $ 32,764 45,199 5,403,448 $ 5,579,914 $ Three months ended June 30,
	329,314 $ 25,007
	354,321 $
	June30,2020
	5,205,382 $ 20,192
	5,225,574 $
		2021 2020 21,239 $ 22,458 $ 273 407 21,512 $ 22,865 $ Six months ended June 30,		2020
				22,458 $ 407
				22,865 $
		2021 42,786 $ 579 43,365 $		2020
				45,217 $ 847
				46,064 $

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D. Others:

June 30, 2021 December 31, 2020 June 30, 2020 Refundable deposits: Uni-President Development Corp. $ 68,526 $ 68,076 $ 67,961 E. On June 20, 2006, the Company and China Metal Products Co., Ltd. (“A party”) jointly signed a creditor’s rights transfer contract with Amida Trustlink Assets Management Co., Ltd. (“B party”). Under the contract, the Company and A party should pay $2,100,000 each (totaling $4,200,000) to jointly acquire whole creditor’s rights of mortgages, security interests and other dependent claims (collectively referred herein as the creditor’s rights) on the Splendor Hotel Taichung Building, and each bears 50% rights and obligations of this acquisition; when all creditor’s rights of this object turn into property rights, the Company and A party should pay B party totaling $1,000,000 as the cost and reward of B party for it is entrusted with the task to help turn the creditor’s rights as stated above into property rights, but any excess cost over $1,000,000 if incurred on this task shall be borne by B party on its own; the Company should pay B party $300,000 before June 30, 2006, and the Company and A party should jointly issue a promissory note of $1,800,000 to B party on the signing date; payment should be done before July 15, 2006. The title to the creditor’s rights as stated above had been transferred to the Company and A party on August 2, 2006. Total acquisition price of the creditor’s rights amounted to $5,200,000, which the Company and A party bear 50% of the price each. The Company had paid its share.

(3) Key management compensation

Key management compensation
Salaries and other short-term employee benefits Post-employment benefits Other long-term benefits Termination benefit Share-based payment Salaries and other short-term employee benefits Post-employment benefits Other long-term benefits Termination benefit Share-based payment	Three months endedJune30,
	2021 2020 32,204 $ 33,997 $ - - - - - - - - 32,204 $ 33,997 $ Six months ended June 30,	2020
		33,997 $ - - - -
		33,997 $
	2021 39,136 $ - - - - 39,136 $	2020
		40,641 $ - - - -
		40,641 $

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8. PLEDGED ASSETS

The Company’s assets pledged as collateral are as follows:

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Pledged asset June 30, 2021 December 31, 2020 June 30, 2020 Purpose
Time deposits, demand deposits and checking deposits $ 746,777 $ 817,206 $ 1,002,965 Performance guarantee,short-term and long-term
(shown as "financial assets at amortised cost") borrowings.
Financial assets at fair value through profit or loss 79,813 79,712 274,052 Long-term borrowings
Land held for construction site 582,620 3,528,125 3,528,125 Short-term borrowings, notes and bills payable
and long-term borrowings
Construction in progress 13,006 840,748 724,099 Short-term borrowings, notes and bills payable
and long-term borrowings
Financial assets at fair value through other 1,566,424 1,293,634 1,366,984 Issued long-term notes and bills
comprehensive income
Investments accounted for under equity method 1,126,503 1,136,641 1,112,596 Short-term borrowings, notes and bills payable
Land 2,792,444 2,792,444 2,792,444 Short-term borrowings, notes and bills payable
and long-term borrowings
Buildings 1,733,867 1,761,640 1,789,412 Short-term borrowings, notes and bills payable
and long-term borrowings
Investment property 4,814,425 4,846,528 4,878,932 Short-term borrowings, notes and bills payable
and long-term borrowings
$ 13,455,879 $ 17,096,678 $ 17,469,609
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9. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNISED CONTRACT COMMITMENTS

(1) Summary of endorsements and guarantees is as follows:
A. Summary of endorsements and guarantees provided by the Company to subsidiaries is as follows:

Name ofcompany	June 30,	Amount drawn 1,850,000 $ 2021	Total endorsement amount Amount drawn 1,875,000 $ 1,875,000 $ December31,2020	June 30,	2020
	Total endorsement amount 1,950,000 $		Total endorsement amount 1,875,000 $	Total endorsement amount 2,100,000 $	Amount drawn
The Splendor Hotel Taichung(Note)					1,900,000 $

Note: The Company and China Metal Products Co., Ltd. provided endorsements and guarantees in equal proportions of 50% ownership each for the Splendor Hotel Taichung’s short-term borrowings, short-term notes and bills payable, long-term notes payable and syndication loan of long-term borrowings.

B. Summary of endorsements and guarantees provided by subsidiaries to the Company is as follows:

Name ofcompany	June 30,	Amount drawn - $ 2021	Total endorsement amount Amount drawn 800,000 $ 800,000 $ December31,2020	June 30,	2020
	Total endorsement amount - $		Total endorsement amount 800,000 $	Total endorsement amount 1,352,085 $	Amount drawn
Prince Real Estate Co., Ltd.					1,352,085 $

C. Summary of endorsements and guarantees provided by subsidiaries to subsidiaries is as follows:

Name ofcompany	June30	Total endorsement amount Amount drawn 10,000 $ 10,000 $ December31,2020	June30,	2020
	Total endorsement amount	Total endorsement amount 10,000 $	Total endorsement amount 10,000 $	Amount drawn
Prince Apartment Management Maintain Co., Ltd.	10,000 $			10,000 $

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D. The accumulated operating losses of the subsidiary, the Splendor Hotel Taichung, had exceeded 50% of its paid-in capital and its current liabilities were greater than its current assets. The Company was committed to provide the endorsement and guarantees for all Splendor Hotel’s borrowings in its ownership proportion of 50%.
(2) Capital expenditures contracted for at the balance sheet date but not yet incurred are as follows:

==> picture [460 x 31] intentionally omitted <==

(3) Operating lease agreement： Please refer to Note 6 (9) for related information.
(4) According to the sale contracts, the Company should provide warranty on the house structure and major facilities for one year from the handover day for the houses it sold. However, any damage to the houses caused by disasters, additions to the houses made by the buyers, or events that are not attributed to the Company is not included in the scope of warranty.
(5) On March 17, 2005, the Company (“A party”) signed a contract with National Taiwan University (“B party”) relating to the construction and operation of dormitories on Chang-Hsing St. and Shui-Yuan Campus. The major terms of the contract are as follows:
A. Under the contract, B party should be responsible for acquiring the ownership or land-use right for this project, and let A party use the land; A party must complete the construction within 3 years from the registration of the superficies, and may operate the dormitories for 44 years, collect dormitory rentals and use fees of other facilities from students, and should return the related assets to B party on the expiry of the contract.
B. A party should give B party a performance guarantee of $60,000 for the construction on the signing date and $30,000 for operations before the start of operation. As of June 30, 2021, December 31, 2020 and June 30, 2020, A party had provided performance guarantee with a guarantee letter issued by the bank, all amounting to $30,000.
C. A party should pay B party land rentals from the registration of the superficies, according to the terms of the contract, and pay B party operating royalties from the third year of the operation, based on the specified proportion of dormitory rentals and use fees of other facilities collected from students.
D. Terms of restrictions for A party:
- (a) The ratio of A party’s own capital utilized in this project to total construction cost of this project should be at least 30%;
- (b) During the operation period, the ratio of shareholders’ equity to total assets should be at least 25%; and current ratio (current assets/current liabilities) should be at least 100%;

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  - (c) All rights acquired by A party under the contract, except for other conditions specified in the contract and approved by B party, should not be transferred, leased, registered as a liability/obligation or become an executed object of civil litigation.

(6) On May 10, 2005, the Company (“A party”) signed a contract with National Cheng Kung University (“B party”) relating to the construction and operation of student dormitories and alumni hall. The major terms of the contract are as follows:
A. Under the contract, B party should be responsible for acquiring the ownership or land-use right for this project, and let A party use the land by way of registration of the superficies; A party must obtain the user license within 3 years after the signing date, and may operate the dormitories and motorcycle parking lots for 35 years from the start of operation and collect dormitory rentals and use fees of other facilities from students for 50 years from the start of construction, and should return the related assets to B party on the expiry of the contract.
B. A party should give B party performance guarantee of $50,000 for this project on the signing date, which will be returned in installment according to the contractual terms. As of June 30, 2021, December 31, 2020 and June 30, 2020, A party had provided performance guarantee with a guarantee letter issued by the bank, amounting to $10,000, $10,000 and $20,000, respectively.
C. During the operation period, A party should pay B party dormitory operating royalties based on the specified proportion of annual operating revenue of the dormitories and auxiliary facilities operating royalties based on the specified proportion of annual operating revenue of the auxiliary facilities. A party should pay such operating royalties for prior year before the end of June every year. Further, according to the superficies contract signed by the two parties, A party should pay B party land rentals from the registration of superficies.
D. All rights acquired by A party under the contract, except for other conditions specified in the contract and approved by B party, should not be transferred, leased, registered as a liability/obligation or become an executed object of civil litigation.
(7) The Company signed a syndicated loan contract with 7 banks - Mega International Commercial Bank as the lead bank for a credit line of $2.16 billion. The syndicated loans include long-term (secured) loans and guarantee payments receivable (secured), which are used to fund the construction of dormitories in Changxing St. Campus and Shuiyuan Campus of National Taiwan University. During the loan period, the Company should maintain financial commitments such as current ratio, liability ratio and interest coverage; those financial ratios/restrictions shall be reviewed at least once every year, based on the Company’s audited annual non-consolidated financial statements. If the Company violates the above financial commitments, it shall improve its financial position by capital increase or other ways before the end of October of the following year from the year of violation; it would not be regarded as a default if the managing bank confirms that its financial position has improved

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completely. In case of violation, interest on the loans would be charged at the loan rate specified in the contract plus additional 0.25％ per annum from the notification date of the managing bank to the completion date of financial improvement or to the date the Company gains the relief from the consortium for its violation.

(8) The Company signed a loan contract with Mega International Commercial Bank for a credit line of $785 million. The loans include long-term (secured) loans and guarantee payments receivable (secured), which are used to fund the construction of student dormitories and alumnus hall of National Cheng Kung University. During the loan period, the Company should maintain financial commitments such as current ratio, liability ratio and interest coverage; those financial ratios/restrictions shall be reviewed at least once every year. Current ratio and liability ratio shall be reviewed based on the Company’s audited annual non-consolidated financial statements, and interest coverage based on the Company’s revenue and expenditure table for the related project. If the Company violates the above financial commitments, it shall improve its financial position by capital increase or other ways before the end of October of the following year from the year of violation; it would not be regarded as a default if the bank confirms that its financial position has improved completely. In case of violation, interest on the loans would be charged at the loan rate specified in the contract plus additional 0.25％ per annum from the notification date of the bank to the completion date of financial improvement or to the date the Company obtains a waiver from the bank for its violation.
(9) On January 20, February 10 and December 27, 2014, the Company signed a contract with Taiwan Sugar Corporation (“TSC”) in relation to cooperative construction of houses. According to the contracts, TSC shall provide Taichung City Koan An Section No. 591-1 and Tainan City Hou Guan Section No.34 and Nanzi Dist., Kaohsiung City Nanzi 1st Section No. 158, etc; the Company shall provide funding for those projects and repurchase houses and land allocated to TSC amounting to $638,763, $830,889 and $1,255,300, and shall bear all improvement fees of houses, public facilities and land, selling expenses, and other expenses or contributed expenses required under the decrees. The Company shall not ask for any compensation for price fluctuations or other reasons. Further, under the contract, the Company shall give TSC performance guarantee amounting to $63,880, $83,080 and $125,540, respectively, on the signing date, which will be returned in instalments according to the contractual terms. The Company had provided such performance guarantee with guarantee letter of the bank as follows:

==> picture [278 x 11] intentionally omitted <==

5 tracts of lands including Nanzi Dist., Kaohsiung City Nanzi 1st Section No. 158 etc $ - $ - $ 55,210

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(10) As of June 30, 2021, December 31, 2020 and June 30, 2020, performance guarantee letters issued for construction undertaking, warranty and leases of subsidiary, Ta-Chen Construction & Engineering Corp., amounted to $516,325, $569,693 and $216,534, respectively.
(11) Certain construction contracts undertaken by subsidiary, Ta-Chen Construction & Engineering Corp., specify that default penalty shall be computed according to the contractual terms if the construction is not completed within the prescribed period.
(12)On October 3, 2018, the subsidiary, the Splendor Hotel Taichung, signed two syndicated loan contracts with 7 financial institutions, including Taiwan Cooperative Bank and Bank SinoPac, etc., each amounting to $1.65 billion and totaling $3.3 billion, with Prince Housing & Development Corp. and China Metal Products Co., Ltd. as guarantors, respectively. Under the contract, the subsidiary promised its tangible equity (equity less intangible assets) shall not be negative and current ratio, liability ratio, tangible net equity and interest coverage of Prince Housing & Development Corp. and China Metal Products Co., Ltd. shall conform to certain criteria as specified in the contract. If the Splendor Hotel Taichung violates above financial commitments, the managing bank has the right to take the following actions, including but not limited, according to the contract or the resolution of majority of the consortium: 1) request the subsidiary to stop drawing down all or part of the loans; 2) cancel all or part of the credit line of the contract which has not been drawn down yet; 3) announce that all outstanding principal, interest and other accrued expenses payable to the consortium in relation to the loan contract should mature immediately; 4) inform the managing bank of the demand for subsidiary’s payment of the promissory note acquired under the loan contract; 5) inform the managing bank to exercise creditor’s right of mortgage; 6) exercise contract transfer right, or other rights given by the laws, the loan contract or other relevant documents; 7) take other actions as resolved by the majority of the consortium.

10. SIGNIFICANT DISASTER LOSS

None.

11. SIGNIFICANT EVENTS AFTER THE BALANCE SHEET DATE

The shareholders have resolved the distribution of earnings for 2020 on August 5, 2021. Please refer to Note 6(21) for more details.

12. OTHERS

(1) Capital management

The Group’s capital management is to ensure it has sufficient financial resource and operating plans to meet operational capital for future needs, capital expenditure, obligation repayment and dividend distribution. The Company adjusts borrowing amount in accordance with construction progress and capital needed for operations.

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(2) Financial instruments

A. Financial instruments by category

Financial assets Financial assets at fair value through profit or loss Financial assets mandatorily measured at fair value through profit or loss $ Financial assets at fair value through other comprehensive income Designation of equity instrument Financial assets at amortised cost Cash and cash equivalents Financial assets at amortised cost Notes receivable Accounts receivable (including related parties) Other receivables Refundable deposits $ Financial liabilities Financial liabilities at amortised cost Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Other payables Corporate bonds payable (including current portion) Long-term borrowings (including current portion) Long-term notes and accounts payable Guarantee deposits received Lease liabitity		June30,2021 4,390,635 2,775,226 2,780,635 1,480,592 66,734 585,250 45,222 126,897 12,251,191 June30,2021
	$
	$
		$

B. Financial risk management policies

(a)The Group’s activities expose it to a variety of financial risks: market risk (including foreign exchange risk, price risk and interest rate risk), credit risk and liquidity risk.
(b) Risk management is carried out by a central treasury department (Group's finance & accounting division) under policies approved by the Board of Directors. Group's finance & accounting division evaluates and hedges financial risks in close cooperation with the Group’s operating units. The Board provides written principles for overall risk management, as well as written policies covering specific areas and matters, such as interest rate risk, credit risk, use of derivative financial instruments and non-derivative financial instruments, and investment of excess liquidity.

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C. Significant financial risks and degrees of financial risks
(a) Market risk

Foreign exchange risk

The Company’s businesses do not involve non-functional currency operations, thus would not be materially affected by the exchange rate fluctuations.

Price risk

i. The Group’s equity securities, which are exposed to price risk, are the held financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage its price risk arising from investments in equity securities, the Group diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Group.
ii. Shares and open-end funds issued by the domestic companies. The prices of equity securities would change due to the change of the future value of investee companies. If the prices of these equity securities had increased/decreased by 10% with all other variables held constant, post-tax profit for the six months ended June 30, 2021 and 2020 would have increased/decreased by $439,064 and $189,154, respectively, as a result of gains/losses on equity securities classified as at fair value through profit or loss. Other components of equity would have increased/decreased by $277,523 and $219,064, respectively, as a result of other comprehensive income classified as equity investment at fair value through other comprehensive income.

Cash flow and fair value interest rate risk

The Group's interest rate risk mainly arose from short-term and long-term (excluding commercial papers) borrowings issued at variable rates and exposed the Group to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. Borrowings issued at fixed rates expose the Group to fair value interest rate risk. The Group’s borrowings at floating rate were calculated by NTD, if interest rates on borrowings had been 0.1% basis point higher/lower with all other variables held constant, profit before tax for the six months ended June 30, 2021 and 2020 would have been $5,536 and $10,123 lower/higher, respectively.

(b) Credit risk
Credit risk refers to the risk of financial loss to the Group arising from default by the clients or counterparties of financial instruments on the contract obligations. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted, so it expects that the probability of counterparty default is remote. Credit risk arises from outstanding receivables (including contract assets).

Accounts receivable and contract assets

i. The Group will perform credit check in accordance with credit policies when entered into construction contracts, the credit risk of receivables (mainly contract assets or accounts receivable) are low as the result of credit check was low.

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ii.The Group’s accounts receivable and contract assets came from general enterprise or government institution. To protect the quality of accounts receivable and contract assets, the Group has created process of credit risk management. The Group considered customers’ financial status, historical trading record and future economic condition in accordance with types of customer, and took into account factors that may influence customers’ ability to pay to assess the credit quality of customers. The Group estimated credit loss by loss rate.
iii.The Group adopts the assumptions under IFRS 9, the default occurs when the contract payments are past due over 90 days.
iv. The Group adjusted the provision matrix with the historical loss of accounts receivable and forecastability, which considered the economic condition in the next one year. The provision matrix in accordance with above estimation are as follows:

Without past due June 30, 2021 Expected loss rate 0.01% Total book value 584,876 $ Loss allowance - December 31, 2020 Expected loss rate 0.01% Total book value 1,025,772 $ Loss allowance - June 30, 2020 Expected loss rate 0.01% Total book value 707,774 $ Loss allowance -	Up to 30 days past due 10% - $ - 10% 2,631 $ - 10% - $ -	Over 31-60 days Over 61-90 days Over 90 days 25% 50% 100% 203 $ - $ 469 $ - - 298 25% 50% 100% 1,686 $ 5 $ 445 $ - - 304 25% 50% 100% - $ - $ 4,448 $ - - 4,223	Total
			585,548 $ 298 1,030,539 $ 304 712,222 $ 4,223

v. Movements in relation to the Company applying the simplified approach to provide loss allowance for accounts receivable are as follows:

			2021			2020
		Accountsreceivable			Accountsreceivable
At January 1		$	304		$	4,460
Provision for (reversal of)			459	(		237)
impairment loss
Derecognised	(		465)			-
At June 30		$	298		$	4,223

vi. The estimation of expected credit loss on financial assets at amortised cost, excluding accounts receivable, is as follows:

For financial assets at amortised cost, at each reporting date, the Group recognises the impairment provision for 12 months expected credit losses if there has not been a significant increase in credit risk since initial recognition or recognises the impairment provision for the lifetime expected credit losses (ECLs) if such credit risk has increased since initial recognition after taking into consideration all reasonable and verifiable information that includes forecasts. On the other hand, for accounts receivable or contract assets that do not contain a significant financing component, the Group recognises the impairment provision for lifetime ECLs.

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(c) Liquidity risk

i. Cash flow forecasting is performed in the operating entities of the Group and aggregated by Group’s Finance and Accounting Division. Group’s Finance and Accounting Division monitors rolling forecasts of the Group’s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities at all times.
ii. The table below analyses the Group’s non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date for non-derivative financial liabilities. The amounts disclosed in the table are the contractual undiscounted cash flows.

==> picture [426 x 43] intentionally omitted <==

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June 30, 2021
Within 1 year Between 1 to 3 years Over 3 years
Non-derivative financial liabilities:
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Non-derivative financial liabilities :
Short-term borrowings	$	280,764	$	-	$	-
Short-term notes and bills payable		70,000		-		-
Notes payable		497		-		-
Accounts payable		806,997		662,740		-
Other payables		620,043		4,811		320
Lease liability		573,065		1,109,754		7,041,561
Guarantee deposits received		105,606		54,233		22,927
Bonds payable (including current portion)		2,042,000		2,521,000		-
Long-term borrowings (including current portion)		699,029		4,068,156		681,795
Long-term notes and accounts payable		-		-		808,301

Non-derivative financial liabilities : Short-term borrowings Short-term notes and bills payable Notes payable Accounts payable Other payables Lease liability Guarantee deposits received Bonds payable (including current portion) Long-term borrowings (including current portion) Long-term notes and accounts payable	December31,2020
	Within 1year Between 1 to 3years 1,325,227 $ - $ 50,000 - 306 - 1,059,529 738,481 710,848 4,421 568,649 1,110,223 97,878 38,453 42,000 4,542,000 1,004,686 5,076,767 - -	Over 3years
		- $ - - - 3,205 7,319,965 24,250 - 3,540,525 808,301

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June 30, 2020

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

Within 1 year Between 1 to 3 years Over 3 years
Non-derivative financial liabilities:
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----- Start of picture text -----

|||||
|---|---|---|---|
|Short-term borrowings|$ 1,744,086|$ -|$ -|
|-|-|
|Short-term notes and bills payable|350,000|
|Notes payable|2,480|29|20|
|Accounts payable|677,669|977,572|1,166|
|Other payables|1,215,169|6,993|320|
|Lease liability|533,468|1,116,067|7,600,074|
|Guarantee deposits received|111,209|14,115|54,817|
|Bonds payable (including current portion)|42,000|2,084,000|2,500,000|
|Long-term borrowings (including current portion)|2,102,835|3,799,526|3,724,413|
|-|-|
|Long-term notes and accounts payable|808,301|
|(including related parties)|

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iii. The Group does not expect the timing of occurrence of the cash flows estimated through the maturity date analysis will be significantly earlier, nor expect the actual cash flow amount will be significantly different.

(3) Fair value information

A. The different levels that the inputs to valuation techniques are used to measure fair value of financial and non-financial instruments have been defined as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date. A market is regarded as active where a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis. The fair value of the Group’s investment in listed stocks and beneficiary certificates is included in Level 1.
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Unobservable inputs for the asset or liability. The fair value of the Group’s investment in equity without active market is included in Level 3.
B. Fair value information of investment property at cost is provided in Note 6(11).
C. Financial instruments not measured at fair value

The carrying amounts of the Group’s cash and cash equivalents, financial instruments at amortised cost (including financial assets at amortised cost, notes receivable, accounts receivable (including related parties), other receivables, refundable deposits, short-term borrowings, short-term notes payable, notes payable, accounts payable, other payables (including related parties), lease liability, corporate bonds payables, long-term borrowings, long-term notes and accounts payable, and guarantee deposits received) are approximate to their fair values.

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D. The related information of financial and non-financial instruments measured at fair value by level on the basis of the nature, characteristics and risks of the assets and liabilities at June 30, 2021, December 31, 2020 and June 30, 2020 are as follows:
(a)The related information of natures of the assets and liabilities is as follows:

June 30, 2021 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Financial assets at fair value through other comprehensive income Equity securities December 31, 2020 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Financial assets at fair value through other comprehensive income Equity securities June 30, 2020 Assets Recurring fair value measurements Financial assets at fair value through profit or loss Equity securities Financial assets at fair value through other comprehensive income Equity securities	Level 1 4,390,635 $ 1,737,597 6,128,232 $ Level 1 1,798,369 $ 1,184,373 2,982,742 $ Level 1 1,891,538 $ 1,216,521 3,108,059 $	Level 2 - $ - - $ Level 2 - $ - - $ Level 2 - $ - - $	Level3 - $ 1,037,629 1,037,629 $ Level3 - $ 1,062,034 1,062,034 $ Level3 - $ 974,123 974,123 $	Total 4,390,635 $ 2,775,226
				7,165,861 $
				Total
				1,798,369 $ 2,246,407
				4,044,776 $
				Total
				1,891,538 $ 2,190,644
				4,082,182 $

(b)The methods and assumptions the Group used to measure fair value are as follows:
i. The instruments the Group used market quoted prices as their fair values (that is, Level 1) are listed below by characteristics:

Market quoted price

Listed shares Open-end fund Closing price Net asset value

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ii. Except for financial instruments with active markets, the fair value of other financial instruments is measured by using valuation techniques or by reference to counterparty quotes. The fair value of financial instruments measured by using valuation techniques can be referred to current fair value of instruments with similar terms and characteristics in substance, discounted cash flow method or other valuation methods, including calculated by applying model using market information available at the balance sheet date.
E. For the six months ended June 30, 2021 and 2020, there was no transfer between Level 1 and Level 2.
F. The following chart is the movement of Level 3 for the six months ended June 30, 2021 and 2020:

			2021			2020
		Non-derivative equity			Non-derivative equity
			instruments			instruments
At January 1		$	1,062,034		$	993,958
Loss recognised in other comprehensive
income (Note)	(		24,405)	(		19,835)
At June 30		$	1,037,629		$	974,123

Note: Shown as unrealised gain or loss on financial assets at fair value through other comprehensive income.
G. For the six months ended June 30, 2021 and 2020, there was no transfer into or out from Level 3.
H. Finance and Accounting segment is in charge of valuation procedures for fair value measurements being categorised within Level 3, which is to verify independent fair value of financial instruments. Such assessment is to ensure the valuation results are reasonable by applying independent information to make results close to current market conditions, confirming the resource of information is independent, reliable and in line with other resources and represented as the exercisable price, and frequently assessing valuation results and making any other necessary adjustments to the fair value.
I. The following is the qualitative information of significant unobservable inputs and sensitivity analysis of changes in significant unobservable inputs to valuation model used in Level 3 fair value measurement:

Non-derivative equity Unlisted shares	Fair value at June 30,2021	Valuation technique	Significant unobservable input	Range (weighted average)	Relationship of inputs to fair value
	1,037,629 $	Market comparable companies Net asset value	Price-earnings ratio, price to book ratio and price to sales ratio multiplier Not applicable	1.21- 35.80	The higher the weighted average cost of capital, the lower the fair value Not applicable

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Non-derivative equity Unlisted shares Non-derivative equity Unlisted shares	Fair value at December 31,2020 Valuation technique 1,062,034 $ Market comparable companies Net asset value Fair value at June 30, 2020 Valuation technique 974,123 $ Market comparable companies Net asset value	Significant unobservable input Range (weighted average) Relationship of inputs to fair value Price-earnings ratio, price to book ratio and price to sales ratio multiplier 1.21- 35.80 The higher the weighted average cost of capital, the lower the fair value Not applicable Not applicable Significant unobservable input Range (weighted average) Relationship of inputs to fair value Price-earnings ratio, price to book ratio and price to sales ratio multiplier 0.86- 18.99 The higher the weighted average cost of capital, the lower the fair value Not applicable Not applicable

J. The Group has carefully assessed the valuation models and assumptions used to measure fair value. However, use of different valuation models or assumptions may result in different measurement. The following is the effect of profit or loss or of other comprehensive income from financial assets and liabilities categorized within Level 3 if the inputs used to valuation models have changed:

have changed:
Financial assets Equity instruments Financial assets Equity instruments Financial assets Equity instruments	Input	Change	June30,2021 Recognised in profit or loss Recognised in other comprehensive income
			Favourable change	Unfavourable change	Favourable change	Unfavourable change
	1,037,629 Input	±1% Change	- $	- $ December	10,376 $ 31,2020
			Recognised inprofit or loss
			Favourable change	Unfavourable change	Favourable change
	1,062,034 Input	±1% Change	- $ Recognised i	- $ June3	10,620 $ 0,2020
				nprofit or loss
			Favourable change	Unfavourable change	Favourable change	Unfavourable change
	974,123	±1%	- $	- $	9,741 $	9,741) ($

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(4) The outbreak of the COVID-19 pandemic in January 2020 has impacted the occupancy rate of hotels as the number of visitors to Taiwan significantly declined. The Group has taken countermeasures by strengthening employee health management and continually focusing on the situation of the pandemic to mitigate the impact on its operations. However, the extent of actual impact would depend on the subsequent development of the pandemic.

13. SUPPLEMENTARY DISCLOSURES

(1) Significant transactions information
A. Loans to others: Please refer to table 1.
B. Provision of endorsements and guarantees to others: Please refer to table 2.
C. Holding of marketable securities at the end of the period (not including subsidiaries, associates and joint ventures): Please refer to table 3.
D. Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company’s paid-in capital: Please refer to table 4.
E. Acquisition of real estate reaching $300 million or 20% of paid-in capital or more: Please refer to table 5.
F. Disposal of real estate reaching $300 million or 20% of paid-in capital or more: None.
G. Purchases or sales of goods from or to related parties reaching $100 million or 20% of paid-in capital or more: None.
H. Receivables from related parties reaching $100 million or 20% of paid-in capital or more: Please refer to table 6.
I. Trading in derivative instruments undertaken during the reporting periods: None.
J.Significant inter-company transactions during the reporting periods: Please refer to table 7.
(2) Information on investees
Names, locations and other information of investee companies (not including investees in Mainland China): Please refer to table 8.

(3) Information on investments in Mainland China

None.

(4) Major shareholders information

Major shareholders information: Please refer to table 9.

14. SEGMENT INFORMATION

(1) General information
Management has determined the reportable operating segments based on the reports reviewed by the Chief Operating Decision-Maker that are used to make strategic decisions. The Group’s corporate composition, basis for segmentation, and basis for measurement of segment’s information had no significant changes for the year. The Chief Operating Decision-Maker considers the business from a product perspective.

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(2) Measurement of segment information

The Chief Operating Decision-Maker assesses the performance of the operating segments based on the profit (loss) before taxes. This measurement basis excludes the effects of non-recurring revenues/expenditures from the operating segments. Accounting policies of operating segments are the same as the summary of significant accounting policies in Note 4 to the consolidated financial statements.

(3) Information about segment profit or loss, assets and liabilities

The segment information provided to the Chief Operating Decision-Maker for the reportable segments is as follows:

segments is as follows:
					Six months		endedJune	30,		2021
									Write-off and
Item		Construction			Hotel		Others		Adjustment			Total
External operating revenue-net	$		4,825,380	$	804,444	$	280,347	$		-	$	5,910,171
Internal operating revenue-net			26,939		-		36,571	(		63,510)		-
Total segment revenue			4,852,319		804,444		316,918					5,910,171
Costs and expenses	(		4,277,593)	(	1,074,700)	(	207,774)			103,139	(	5,456,928)
Segment income			574,726	(	270,256)		109,144					453,243
Interest income			3,352		1,707		705	(		1,601)		4,163
Other income			140,954		42,511		2,583	(		2,585)		183,463
Other gains and losses			1,102,782	(	258)	(	173)			-		1,102,351
Finance costs	(		60,999)	(	92,124)	(	68)			1,609	(	151,582)
Share of profit of associates and joint
ventures accounted for under the equity method			903,984		-		15,440	(		898,537)		20,887
Income (loss) from continuing operations
before tax			2,664,799	(	318,420)		127,631					1,612,525
Income tax (expense) benefit	(		119,389)		54,580	(	652)			-	(	65,461)
Net income (loss) for the period	$		2,545,410	($	263,840)	$	126,979				$	1,547,064
Segment assets	$		40,122,179	$	13,417,026	$	939,300	(		5,384,439)	$	49,094,066
Segment liabilities	$		10,450,007	$	12,782,765	$	54,787	(		702,979)	$	22,584,580

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Six months ended June 30, 2020

==> picture [472 x 274] intentionally omitted <==

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Write-off and
Item Construction Hotel Others Adjustment Total
External operating revenue-net $ 3,753,619 $ 772,075 $ 286,402 $ - $ 4,812,096
Internal operating revenue-net 113,764 - 35,377 ( 149,141) -
Total segment revenue 3,867,383 772,075 321,779 4,812,096
Costs and expenses ( 3,879,379) ( 992,742) ( 211,912) 129,186 ( 4,954,847)
Segment income ( 11,996) ( 220,667) 109,867 - ( 142,751)
interest income 8,303 2,916 1,353 ( 5,454) 7,118
Other income 113,891 45,544 2,665 ( 2,733) 159,367
Other gains and losses 148,269 92 ( 79) - 148,282
Finance costs ( 79,569) ( 77,053) ( 104) 5,473 ( 151,253)
Share of (loss) profit of associates and joint
ventures accounted for under the equity method ( 79,432) - 11,847 77,071 9,486
Income (loss) from continuing operations
before tax 99,466 ( 249,168) 125,549 30,249
Income tax (expense) benefit ( 25,276) 50,345 ( 1,536) - 23,533
Net income (loss) for the period $ 74,190 ($ 198,823) $ 124,013 $ 53,782
Segment assets $ 42,454,404 $ 14,388,281 $ 898,883 ( 4,622,019) $ 53,119,549
Segment liabilities $ 16,928,705 $ 13,114,307 $ 56,696 ( 676,421) $ 29,423,287
----- End of picture text -----

(4) Reconciliation for segment income (loss), assets and liabilities

The revenue from external parties, segment income, segment assets and liabilities reported to the Chief Operating Decision-Maker are measured in a manner consistent with the revenue, profit before taxes, total assets and total liabilities in the financial statements. Information on adjusted consolidated total profit (loss), reportable segment profit after taxes, total assets and total liabilities, and reconciliation for reportable segment assets and liabilities for this year is provided in Note 14(3).

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Prince Housing & Development Corp. Loans to others

Table 1

Expressed in thousands of NTD (Except as otherwise indicated)

Six months ended June 30, 2021

No. (Note 1)	Creditor	Borrower	General ledger account	Is a related party	Maximum outstanding balance during the six months endedJune30,2021	Balance at June 30, 2021	Actual amount drawn down	Interest rate	Nature of loan	Amount of transactions with the borrower	financing	Collateral		Limit on loans granted to a singleparty	Ceiling on total loansgranted	Footnote
												Allowance for accounts Item	Value
1 2 3	Ta-Chen Construction & Engineering Corp. Cheng-Shi Construction Co., Ltd. Times Square Intermational Investment Holdings Co., Ltd.	Cheng-Shi Investment Holdings Co., Ltd. Cheng-Shi Investment Holdings Co., Ltd. Time Square International Co., Ltd.	Other receivables - related parties Other receivables - related parties Other receivables - related parties	Y Y Y	100,000 86,000 70,000	- $ - 70,000	- $ - -	2.7 2.7 2.7	Short-term financing Short-term financing Short-term financing	- $ - -	Additional operating capital Additional operating capital Additional operating capital	- $ None - None - None	- $ - -	500,000 $ 89,085 87,955	900,027 $ 89,085 87,955	Note 2 Note 3 Note 4

Note 1: The numbers filled in for the loans provided by the Company or subsidiaries are as follows:

(1) The Company is ‘0’.
(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Limit on loans granted to a single party and ceiling on total loans granted as prescribed in Ta-Chen Construction & Engineering Corp. "Procedures for Provision of Loans" are as follows:

A. Ceiling on total loans to others: 40% of the Company's net worth.
B. Limit on loans to a single party:
(a) Nature of the loan is related to business transactions: Limit to a single party is NT$1.0 billion or the amount of business transactions between the creditor and borrower in the current year.
(b) Nature of loan is for short-term financing: Limit on loans to a single party is NT$500 million.

Note 3: Limit on loans granted to a single party and ceiling on total loans granted as prescribed in Cheng-Shi Construction Co., Ltd. "Procedures for Provision of Loans" are as follows:

A. Ceiling on total loans to others: 40% of the Company’s net worth.
B. Limit on loans to a single party:
(a)Nature of the loan is related to business transactions: The amount of business transactions between the creditor and borrower in the current year.
(b)Nature of loan is for short-term financing: Limit on loans to a single party is 40% of the Company’s net worth.

Note 4: Times Square Intermational Investment Holdings Co., Ltd. limit on loans granted to a single party and ceiling on total loans granted are as follows:

A. Ceiling on total loans to others: 30% of the Company's net worth.
B. Limit on loans to a single party:

(a) Nature of the loan is related to business transactions: The amount of business transactions between the creditor and borrower in the current year.

(b) Nature of loan is for short-term financing: Limit on loans to a single party is 30% of the Company's net worth.

Table 1,Page 1

Table 2

Prince Housing & Development Corp.

Provision of endorsements and guarantees to others

Six months ended June 30, 2021

Expressed in thousands of NTD

(Except as otherwise indicated)

Party being endorsed/guaranteed

Number (Note 1)	Endorser/ guarantor	Companyname	Relationship with the endorser/ guarantor (Note 2)	Limit on endorsements/ guarantees provided for a singleparty	Maximum outstanding endorsement/ guarantee amount as of June 30, 2021	Outstanding endorsement/ guarantee amount at June 30, 2021	Actual amount drawn down	Amount of endorsements/ guarantees secured with collateral	Ratio of accumulated endorsement/ guarantee amount to net asset value of the endorser/ guarantor company	Ceiling on total amount of endorsements/ guarantees provided	Provision of endorsements/ guarantees by parent company to subsidiary	Provision of endorsements/ guarantees by subsidiary to parent company	Provision of endorsements/ guarantees to the party in Mainland China	Footnote
0 1 2	Prince Housing & Development Corp. Prince Real Estate Co., Ltd. Prince Apartment Management Maintain Co., Ltd.	The Splendor Hotel Taichung Prince Housing & Development Corp. Prince Security Co., Ltd.	6 3 4	5,267,266 $ 2,500,000 20,000	2,125,000 $ 800,000 10,000	1,950,000 $ - 10,000	1,850,000 $ - 10,000	$ - - -	7% 0% 22%	13,168,165 $ 5,000,000 50,000	Y N N	N Y N	N N N	Note 3 Note 4 Note 5

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

(1) The Company is ‘0’.
(2) The subsidiaries are numbered in order starting from ‘1’. The same company will have the same number.

Note 2: Relationship between the endorser/guarantor and the party being endorsed/guaranteed is classified into the following seven categories:

(1)Having business relationship.
(2)The endorser/guarantor parent company owns directly and indirectly more than 50% voting shares of the endorsed/guaranteed subsidiary.
(3)The endorsed/guaranteed company owns directly and indirectly more than 50% voting shares of the endorser/guarantor parent company.
(4)The endorser/guarantor parent company owns directly and indirectly more than 90% voting shares of the endorsed/guaranteed company.
(5)Mutual guarantee of the trade made by the endorsed/guaranteed company or joint contractor as required under the construction contract.
(6)Due to joint venture, all shareholders provide endorsements/guarantees to the endorsed/guaranteed company in proportion to its ownership.
(7)Joint guarantee of the performance guarantee for pre-sold home sales contract as required under the Consumer Protection Act.
Note 3:In accordance with the Company’s related regulations, the limit on endorsements and guarantees for any single entity is 20% of the Company’s net worth based on the latest financial statements and the limit on accumulated amount of transactions of endorsements and guarantees is 50% of the Company’s net worth based on the latest financial statements.

Note 4: In accordance with Prince Real Estate Co., Ltd.'s related regulations, the limit of endorsements and guarantees for any single entity is $2,500,000; the total accumulated amount is $5,000,000.

Note 5: In accordance with Prince Apartment Management Maintain Co., Ltd.'s related regulations, the limit of endorsements and guarantees for any single entity is $20,000; the total accumulated amount is $50,000.

Table 2,Page 1

Prince Housing & Development Corp.

Holding of marketable securities at the end of the year (not including subsidiaries, associates and joint ventures)

June 30, 2021

				June 30, 2021
Securities held by Table 3	Marketable securities	Name of investee companies	Relationship with the securitiesissuer	General ledgeraccount		As ofJune 30,2021		Fairvalue Footnote Expressed in thousands of NTD (Except as otherwise indicated)
					Numberofshares	Bookvalue	Ownership (%)	Fairvalue
Prince Housing & Development Corp. Ta-Chen Construction & Engineering Corp. Cheng-Shi Construction Co., Ltd. Prince Utility Co., Ltd. Prince Apartment Management Maintain Co., Ltd. Prince Security Co., Ltd. Prince Property Management Consulting Co., Ltd. Times Square International Stays Corp. Prince Real Estate Co., Ltd.	Stock Stock Stock Stock Stock Stock Stock Stock Stock Stock Stock Fund Fund Fund Fund Fund Fund Fund Stock Stock Stock Fund Fund Stock Stock Stock Fund Fund Fund Stock Stock Fund	Nantex Industry Co., Ltd. ScinoPharm Taiwan, Ltd. Simplo Technology Co., Ltd. Universal Venture Capital Investment Corp. Grand Bills Finance Corp. Chipwell Tech. Corp. Nanmat Technology Co., Ltd. Southern Science Joint Development . Formosoft International Co., Ltd. President Energy Development Corp. President International Development Corp. Mega Diamond Money Market Fund UPAMC James Bond Money Market Fund Allianz Global Investors Taiwan Money Market Fund Jih Sun Money Market Fund Yuanta De-Li Money Market Fund Eastspring Investments Well Pool Money Market Fund Prudential Financial Money Market Fund Nantex Industry Co., Ltd. Chipwell Tech. Corp. Nanmat Technology Co., Ltd. UPAMC James Bond Money Market Fund UPAMC James Bond Money Market Fund Prince Housing & Development Corp. Tainan Spinning Co., Ltd. Nanmat Technology Co., Ltd. CTBC Hwa-win Money Market Fund UPAMC James Bond Money Market Fund Taishin 1699 Money Market Fund Nantex Industry Co., Ltd. Sung Gang Asset Management Co., Ltd. Jih Sun Money Market Fund	None None None None None None None None None None None None None None None None None None None None None None None Parent company None None None None None None None None	Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - non-current Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Non-current financial assets at fair value through other comprehensive income Non-current financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss - current	7,564,988 23,605,921 76,349 1,400,000 48,672 344,488 1,648,563 10,000 7,117 10,800 87,745,770 6,301,406 41,536,582 19,929,969 20,080,321 12,269,203 18,218,255 18,855,452 13,327,483 349,990 1,848,857 5,934,225 1,780,268 655,424 122,201 246,513 2,172,949 1,197,463 2,952,008 194,282 47,968 11,874,873	1,085,576 $ 610,213 27,409 11,340 934 1,347 106,151 1,566 - 311 779,690 79,813 700,182 252,042 300,627 201,893 250,082 301,221 1,912,493 1,369 119,048 100,000 30,000 7,537 1,833 15,873 24,000 20,180 40,320 11,871 695 177,782	Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 Note 1 10.00% Note 1 6.00% 6.63% - - - - - - - Note 1 Note 1 5.40% - - Note 1 Note 1 Note 1 - - - Note 1 Note 1 -	143.50 $ 25.85 359.00 8.10 19.19 3.91 64.39 156.58 - 28.79 8.89 12.67 16.86 12.65 14.97 16.46 13.73 15.98 143.50 3.91 64.39 16.86 16.86 11.90 29.55 64.39 11.12 16.86 13.66 143.50 14.60 14.97	Listed company, Note 2 Listed company, Note 3 OTC company Note 4 Note 5 Listed company Listed company Listed company Listed company OTC company

Note 1: Percentage of Company’s ownership is less than 5%.

Note 2: 4,088 thousand shares of outstanding common stock were used as collateral for loan.

Note 3: 17,276 thousand shares of outstanding common stock were used as collateral for loan.

Note 4: 60,000 thousand shares of outstanding common stock were used as collateral for loan. Note 5: 6,301 thousand units of outstanding common stock were used as collateral for loan.

Table 3,Page 1

Prince Housing & Development Corp.

Acquisition or sale of the same security with the accumulated cost exceeding $300 million or 20% of the Company's paid-in capital Six months ended June 30, 2021

					Six months ended	Six months ended	June 30, 2021	June 30, 2021
Table 4 Investor	Marketable securities (Note1)	General ledgeraccount	Counterparty (Note2)	p with the investor (Note2)	Balance as at January1,2021		Addition(Note 3)			Disposal(Note 3)			Expressed in thousands of NTD (Except as otherwise indicated) Balance as at June 30,2021
					Number of shares	Amount	Number of shares	Amount	Number of shares	Selling price	Bookvalue	Gain on disposal	Number of shares	Amount
Prince Housing & Development Corp.	UPAMC James Bond Money Market Fund	Financial assets at fair value through profit or loss - current	-	-	-	- $	41,536,582	700,000 $	-	- $	- $	- $	41,536,582	700,000 $

Note 1: Marketable securities in the table refer to stocks, bonds, beneficiary certificates and other related derivative securities.

Note 2: Fill in the columns the counterparty and relationship if securities are accounted for under the equity method; otherwise leave the columns blank.

Note 3: Aggregate purchases and sales amounts should be calculated separately at their market values to verify whether they individually reach NT$300 million or 20% of paid-in capital or more. Note 4: Paid-in capital referred to herein is the paid-in capital of parent company. In the case that shares were issued with no par value or a par value other than NT$10 per share, the 20 % of paid-in capital shall be replaced by 10% of equity attributable to owners of the parent in the calculation.

Table 4,Page 1

Prince Housing & Development Corp.

Table 5

Acquisition of real estate reaching $300 million or 20% of paid-in capital or more

Six months ended June 30, 2021

Expressed in thousands of NTD

(Except as otherwise indicated)

If the counterparty is a related party, information as to the last transaction of the real estate is disclosed below: Reason for acquisition of Original owner real estate and Relationship who sold the real Relationship between Date of the Basis or reference status of the Transaction Status of with the estate to the the original owner original used in setting the real Other Real estate acquired by Real estate acquired Date of the event amount payment Counterparty counterparty counterparty and the acquirer transaction Amount price estate commitments Prince Housing & Development Corp. Ren Wu Dist. Xia 2013/06/14 Note 2 $ 1,175,285 Redevelopment Third party - - - $ - Note 2 For operating None Hai Lot No. 978, etc. (Note 1) zone of Xia Hai use Term, Renwu District, Kaohsiung City

Note 1: The transfer of title took place on settlement date. The Company paid $0 for the current period. As of June 30, 2021, the Company has already paid $1,175,285.

Note 2: In order to purchase 67.13% of areas from the north side of the offset-expenditure land in the redevelopment zone, the transaction amount was the expected price including compensation for demolition to all land owners of north side of the offset-expenditure land, compensation for demolition to owners of parkland to be (67.13%), construction expenses in all regions (67.13%) and interests arising from re-planning committee's borrowing from the Company to pay aforementioned expenses.

Table 5,Page 1

Prince Housing & Development Corp.

Receivables from related parties reaching $100 million or 20% of paid-in capital or more

June 30, 2021

Table 6

Expressed in thousands of NTD (Except as otherwise indicated)

Creditor	Counterparty	Relationship with the counterparty	Balance as at June30,2021	Turnover rate	Overdue	Overdue	Amount collected subsequent to the balance sheet date	Allowance for doubtful accounts
					Amount	Action taken
Prince Housing & Development Corp.	The Splender Hotel Taichung	Subsidiary	Other assets - obligation receivable 575,000 $	-	- $	-	- $	- $

Table 6,Page 1

Prince Housing & Development Corp.

Significant inter-company transactions during the reporting periods Six months ended June 30, 2021

Table 7

Expressed in thousands of NTD

(Except as otherwise indicated)

Transaction

Number	Companyname	Counterparty	Relationship	General ledger account	Amount	Transaction terms	Percentage of consolidated total operating revenues or total assets
0 0 0 0	Prince Housing & Development Corp. Prince Housing & Development Corp. Prince Housing & Development Corp. Prince Housing & Development Corp.	Cheng-Shi Construction Co., Ltd. Prince Utility Co., Ltd. The Splender Hotel Taichung The Splender Hotel Taichung	The Company to the consolidated subsidiaries The Company to the consolidated subsidiaries The Company to the consolidated subsidiaries The Company to the consolidated subsidiaries	Construction in progress Construction in progress Endorsement and guarantee Other assets - obligation receivables	321,200 171,100 1,950,000 575,000	- - In accordance with endorsement and guarantee procedures Creditor's rights purchase contract	0.65% 0.35% 3.97% 1.17%

Note 1: The numbers filled in for the transaction company in respect of inter-company transactions are as follows:

(1) Parent company is ‘0’.

(2) The subsidiaries are numbered in order starting from ‘1’.

Note 2: Relationship between transaction company and counterparty is classified into the following three categories:

(1) Parent company to subsidiary.

(2) Subsidiary to parent company.

(3) Subsidiary to subsidiary.

Note 3: Regarding percentage of transaction amount to consolidated total operating revenues or total assets, it is computed based on period-end balance of transaction to consolidated total assets for balance sheet accounts and based on accumulated transaction amount for the period to consolidated total operating revenues for income statement accounts.

Note 4: The table only discloses transaction amounts of NT$100 million or more.

Table 7,Page 1

Prince Housing & Development Corp. Information on investees

Six months ended June 30, 2021

Table 8

Expressed in thousands of NTD (Except as otherwise indicated)

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares h	eld as at June 30,	2021	Net profit (loss) of the investee for the six months ended June 30,2021	Investment income (loss) recognised by the Company for the six months ended June 30,2021	Footnote
				Balance as at June 30,2021	Balance as at December 31,2020	Number of shares	Ownership (%)	Book value
Prince Housing & Development Corp. Cheng-Shi Investment Holdings Co., Ltd Prince Housing Investment Co., Ltd.	Cheng-Shi Investment Holdings Co., Ltd. Prince Property Management Consulting Co., Ltd. Geng-Ding Co., Ltd. Prince Housing Investment Co., Ltd. Uni-President Development Corp. The Splender Hotel Taichung Jin Yi Xing Plywood Co., Ltd. Ming-Da Enterprise Co., Ltd. Prince Industrial Co., Ltd. Prince Real Estate Co., Ltd. Times Square International Investment Holdings Co., Ltd. Ta-Chen Construction & Engineering Corp. Prince Utility Co., Ltd. Cheng-Shi Construction Co., Ltd. PPG Investment Inc. Queen Holdings Ltd.	Taiwan Taiwan Taiwan British Virgin Islands Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan Taiwan U.S.A British Virgin Islands	General investment Management and consulting Hotels and catering Overseas investment Leasing of buildings Hotels and catering Manufacture of plywoods Real estate trading Development of public housing and building Real estate trading and leasing General investment Construction Electricity water pipe Construction Overseas investment Overseas investment	1,146,925 $ 181,000 120,000 140,413 1,080,000 975,000 165,410 37,378 10,000 470,784 607,270 856,566 56,025 208,027 56,945 122,034	1,146,925 $ 181,000 120,000 140,413 1,080,000 975,000 165,410 37,378 10,000 470,784 607,270 856,566 56,025 208,027 56,945 122,034	116,105,000 17,146,580 18,000,000 428 108,000,000 97,500,000 3,938,168 200,000 1,000,000 12,292,315 79,800,000 90,497,528 3,070,000 20,100,000 273 2,730	100% 100% 30% 100% 30% 50% 99.65% 20% 100% 99.68% 100% 100% 100% 100% 27.30% 27.30%	2,391,606 $ 258,204 294,943 577,057 1,126,503 170,540 297,651) ( - 9,276 688,439 293,182 2,250,069 46,080 212,800 19,435 393,546	1,150,701 $ 2,836 32,277) ( 18,075 63,763 99,939) ( 1 - 27) ( 155 260,285) ( 1,163,867 3,479) ( 8,254) ( 21,713 34,844	1,187,730 $ 2,883 9,683) ( 18,075 19,129 49,969) ( 1 - 27) ( 151 260,306) ( - - - - -	Notes 1 and 2 Notes 1 and 2 Note 2 Note 4 Note 2 Note 2 Note 5 Note 2 Notes 1 and 2 Notes 2 Notes 2 and 3 Notes 2 and 3 Notes 2 and 3 Note 3 Note 3

Table 8,Page 1

Investor	Investee	Location	Main business activities	Initial invest	ment amount	Shares h	eld as at June 30,	2021	Net profit (loss) of the investee for the six months ended June 30,2021	Investment income (loss) recognised by the Company for the six months ended June 30,2021	Footnote
				Balance as at June 30,2021	Balance as at December 31,2020	Number of shares	Ownership (%)	Book value
Prince Property Management Consulting Co., Ltd. Princre Real Estate Co., Ltd. Time Square International Investment Holdings Co., Ltd	Prince Apartment Management Maintain Co., Ltd. Prince Security Co., Ltd. Amida Trustlink Assets Management Co., Ltd. Time Square International Co., Ltd. Times Square International Stays Corp.	Taiwan Taiwan Taiwan Taiwan Taiwan	Management of apartments Security Development of public housing and building Hotels and catering Hotels and catering	67,853 $ 159,611 304,289 443,270 430,000	67,853 $ 159,611 304,289 443,270 430,000	3,000,000 13,172,636 21,525,020 53,000,000 42,000,000	100% 100% 45.21% 100.00% 100.00%	41,336 $ 169,338 139,754) ( 82,731 206,608	1,408 $ 1,513 303) ( 182,972) ( 77,255) (	- $ - - - -	Notes 2 and 3 Notes 2 and 3 Note 3 Notes 2 and 3 Notes 2 and 3

Note 1: The difference between the income (loss) of the investee and the investment income (loss) of the investee recognised by the Company is the investment income (loss) of the investee recognised by the Company in proportion to the share ownership and unrealised gain (loss) from elimination of inter-Company transactions.

Note 2: Subsidiary.

Note 3: The amount has been included in the profit (loss) of the Company’s investee accounted using equity method and has been recognised as gain (loss) on investment.

Note 4: Provided 108,000 thousand shares as collateral.

Note 5: The liquidation of the investee was completed on May 31, 2021.

Table 8,Page 2

Prince Housing & Development Corp. Major shareholders information June 30, 2021

	June 30, 2021
Table 9 Name of major shareholders	Shares Number of shares held 162,743,264 100,961,587	Ownership (%)
Uni-President Enterprises Corp. Taipo Investment Co., Ltd.		10.03% 6.22%

Table 9,Page 1

AI assistant

PHD — Interim / Quarterly Report 2021

52134_rns_2021-11-25_10e40dce-03f4-41cc-bf21-55df007b313a.pdf

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS AND

INDEPENDENT AUDITORS’ REVIEW REPORT TRANSLATED FROM CHINESE

Introduction

Scope of review

Basis for qualified conclusion

Qualified conclusion

August 5, 2021

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS

JUNE 30, 2021, DECEMBER 31, 2020 AND JUNE 30, 2020

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

SIX MONTHS ENDED JUNE 30, 2021 AND 2020

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY SIX MONTHS ENDED JUNE 30, 2021 AND 2020

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2021 AND 2020

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

SIX MONTHS ENDED JUNE 30, 2021 AND 2020

PRINCE HOUSING & DEVELOPMENT CORP. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED JUNE 30, 2021 AND 2020

1. HISTORY AND ORGANIZATION

2. THE DATE OF AUTHORIZATION FOR ISSUANCE OF THE CONSOLIDATED FINANCIAL

STATEMENTS AND PROCEDURES FOR AUTHORIZATION

3. APPLICATION OF NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS

(3) IFRSs issued by IASB but not yet endorsed by the FSC

4. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(1) Compliance statement

(2) Basis of preparation

(3) Basis of consolidation

(4) Employee benefits

Pensions-defined contribution plan

(5) Income taxes

5. CRITICAL ACCOUNTING JUDGEMENTS, ESTIMATES AND KEY SOURCES OF ASSUMPTION UNCERTAINTY

(1) Critical judgements in applying the Group’s accounting policies

Investment property

(2) Critical accounting estimates and assumptions

Revenue recognition

6. DETAILS OF SIGNIFICANT ACCOUNTS

(1) Cash and cash equivalents

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

(4) Financial assets at amortised cost

(5) Notes and accounts receivable

(c)Buildings and land held for sale

E. Disclosure of significant constructions:

(a) As of June 30, 2021, significant constructions are set forth below:

(b) As of December 31, 2020, significant constructions are set forth below:

(c) As of June 30, 2020, significant constructions are set forth below:

(7) Investments accounted for under the equity method

Associates

Statements of comprehensive income

(8) Property, plant and equipment

B. Changes in property, plant and equipment for the period are as follows:

－ (9) Leasing arrangements lessee

B. The carrying amount of right-of-use assets and the depreciation charge are as follows:

(10) Leasing arrangements – lessor

(11) Investment property

B. Changes in investment property for the period are as follows:

(12) Intangible assets

B. Changes in intangible assets for the period are as follows:

C. Details of amortization on intangible assets are as follows:

(13) Short-term borrowings

(15) Bonds payable

- (16) Long term borrowings

(17) Provisions - replacement cost

(18) Pension

(19) Share capital

(20) Capital surplus

(21) Retained earnings

(22) Other equity items

(23) Maturity analysis of assets and liabilities

(25) Interest income

(26) Other income

(27) Other gains and losses

(28) Finance costs

(30) Income tax

PHD Interim / Quarterly Report 2021

`－` (9) Leasing arrangements lessee