POCS — Annual Report 2021

Nov 9, 2021

Prime Oil Chemical Service Corporation and its subsidiaries

Consolidated Financial Statements and

Independent Auditor’s Review Report for the Years Ended December 31, 2021 and 2020

(Stock Code: 2904)

Company Address: 5F, No. 131, Section 3, Minsheng East Road, Taipei City Tel: (02)2717-4347

~1~

Prime Oil Chemical Service Corporation and its subsidiaries Consolidated Financial Statements and Independent Auditor’s Review Report for FY

2021 and FY2020

Table of Contents

Item	Page
I. Cover Page	1
II. Table of Contents	2 ~ 3
III. Declarations	4
IV. Independent Auditors’ Report	5 ~ 10
V. Consolidated Balance Sheet	11 ~ 12
VI. Consolidated Comprehensive Income Statement	13 ~ 14
VII. Consolidated Statement of Changes in Equity	15
VIII. Consolidated Cash Flow Statement	16
IX. Notes to the Consolidated Financial Statements	17 ~ 65
(I) Company History and Business Scope	17
(II) Date and Procedures for Approval of Financial Statements	17
(III) Newly-released and amended standards and interpretations	17 ~ 18
(IV) Summary of significant accounting policies	19 ~ 27
(V) Significant Accounting Estimations and Judgments, and Main Sources of
Assumption Uncertainties	27
(VI) Statements of main accounting items	27 ~ 53

~2~

Item	Page
(VII) Related-party transactions	53
(VIII) Pledged assets	54
(IX) Significant contingent liabilities and unrecognized contract commitments	54
(X) Losses due to major disasters	54
(XI) Significant events after the balance sheet date	54
(XII) Others	54 ~ 62
(XIII) Additional disclosures	62 ~ 63
(XIV) Operating segments information	63 ~ 65

~3~

Prime Oil Chemical Service Corporation and its subsidiaries

Statement of Consolidated Financial Statements of Affiliated Companies

For 2021 (from January 1, 2021 to December 31, 2021), the entities that should be included in the consolidated financial reports of affiliated enterprises based on "Criteria Governing Preparation of Affiliation Reports, Consolidated Business Reports and Consolidated Financial Statements of Affiliated Enterprises" and the entities that should be included in the consolidated financial reports of subsidiaries based on "Consolidated and separate financial statements" of International Financial Reporting Standards No. 10 (IFRS 10) were the same. The related information that should be disclosed in the consolidated financial statements of affiliated enterprises is also already disclosed in the consolidated financial reports for subsidiaries so that the consolidated financial statements of affiliated enterprises would not be published separately.

Prime Oil Chemical Service Corporation and its subsidiaries

Representative: Liao, Shu-Chun

March 24, 2022

~4~

Independent Auditors’ Report (2022) Cai-Shen-Bao-Zi #21005445

To the Board of Directors and Shareholders of Prime Oil Chemical Service Corporation.:

Opinion

We have reviewed the accompanying consolidated balance sheets of Prime Oil Chemical Service Corporation and its subsidiaries (hereinafter referred to as the “Corporate Group”) as of December 31, 2021 and 2020 and the related consolidated comprehensive income statements, consolidated statements of changes in equity and consolidated cash flow statements for the periods then ended, and notes to the consolidated financial statements (including a summary of the significant accounting policies).

Based on our review, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Prime Oil Chemical Service Corporation as of December 31, 2021 and 2020, and the consolidated financial results and consolidated cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers, International Financial Reporting Standards, International Accounting Standards, explanations and announcements of explanations recognized by the Financial Supervisory Commission.

Basis for Audit Opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and the Republic of China Generally Accepted Auditing Standards (ROC GAAS). Our responsibilities under such standards will be elaborated in the paragraph of the Independent Auditors’ responsibilities for audits of consolidated financial statements. Our personnel subject to the independence requirements have complied with the Codes of Professional Ethics for Certified Public Accountants in the Republic of China (hereinafter referred to as the “Codes”), have been independent of Prime Oil Chemical Service Corporation, and have fulfilled other ethical responsibilities under such Codes. We believe that we have obtained sufficient and appropriate audit evidence to provide a basis for our opinion.

~5~

Key inspection items

Key inspection items refer to those matters that, in our professional judgment, are of most significance in relation to our audit of Prime Oil Chemical Service Corporation’s Consolidated Financial Statements as of 2021. These matters have been addressed in the process of our audit of the Consolidated Financial Statements as a whole and forming our opinion thereon and we do not express an opinion on these matters individually.

Key inspection items of Prime Oil Chemical Service Corporation’s Consolidated Financial Statements as of 2021 are as follows:

Evaluation of other equipment impairment

Description

For property, plant and equipment, please refer the Note 6(6) of the Consolidated Financial Statements. For accounting policies of impairment assessment and significant accounting judgments, assumptions and uncertainty of estimations, please refer to Note 4(16) and 5 of the Consolidated Financial Statements respectively.

Prime Oil Chemical Service Corporation’s other equipment (under property, plant and equipment) is the major asset related to the solar power generation division with a book value of NT$815,482 thousand, accounting for 50% of the total consolidated assets. Due to the scarcity of available solar power land and difficulty of developing large sites, Prime Oil Chemical Service Corporation estimates the amount recoverable of other equipment based on the value in use and applies it as the basis of impairment assessment. Since the value-in-use evaluation process involves judgement of changes due to variations of economic environment or climate conditions and uncertainties to the future due to changes in estimation results brought by the conditions, which could have a significant impact on the recoverable amount measurement and in turn affects the assessment of impairment amount, we consider the impairment assessment of other equipment a key inspection item.

Audit procedure in response

The audit procedures we performed are set out below:

1. Review management’s estimates of recoverable amounts of other equipment at the balance sheet date and reassess the correctness of the related calculations.

~6~

1. Understand and evaluate that the Company's asset impairment assessment procedures and accounting policies are complied with the accounting principles and are consistently applied, including a review of the methods adopted by the management when determining recoverable amounts.

2. Obtain assessment information used by management for determining recoverable amounts based on asset use patterns and industry characteristics and assess the reasonableness of the independent cash flows, the durable years of the assets and the potential future revenues and expenses.

3. Compare the recoverable amount with the carrying amount to examine the correctness of the impairment calculation.

Others - Standalone Financial Reports

Prime Oil Chemical Service Corporation has prepared its financial statements for the years ended December 31, 2021 and 2020, and we have issued an unqualified audit report thereon for reference.

The management’s and governance units’ responsibilities to the Consolidated Financial Statements

The management’s responsibility is to prepare the Consolidated Financial Statements that present fairly the Company’s financial position in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and maintain the necessary internal control relevant to the preparation of the Consolidated Financial Statements to ensure that the Consolidated Financial Statements are free from material misstatements, whether due to fraud or error.

In preparing the Consolidated Financial Statements, the responsibility of the management also includes evaluating the ability of the Company’s going concern, disclosure of related matters, and adoption of the going concern basis of accounting, unless the management intends to liquidate Prime Oil Chemical Service Corporation or to cease its operations or has no practical alternative to liquidation or cessation of operations.

Prime Oil Chemical Service Corporation’s governance unit is responsible for overseeing the financial reporting process.

~7~

Independent Auditors’ responsibilities to auditing the Consolidated Financial Statements.

The purpose of our audit is to obtain reasonable assurance about whether the Consolidated Financial Statements as a whole are free from material misstatements resulting from fraud or error and to issue an audit report thereon. Reasonable assurance represents highly assurance, however the audit work conducted in accordance with the Republic of China Generally Accepted Auditing Standards does not provide assurance that material misstatements in the Consolidated Financial Statements can be detected. Misstatements might result from fraud or error If the individual amounts or aggregates of misstatements could reasonably be expected to affect economic decisions made by the users of the Financial Statements, such amounts are deemed material.

We applied our professional judgment and maintained our professional skepticism in our audit in accordance with the Republic of China’s Generally Accepted Auditing Standards. We also conducted the following work:

1. Identify and assess risk of material misstatements resulting from fraud or error; design and implement appropriate countermeasures for the assessed risks; and obtain sufficient and appropriate audit evidences as the basis of our audit opinion. Since fraud may involve conspiracy, forgery, intentional omission, misrepresentation or a breach of internal control, the risk of not detecting a material misstatement due to fraud is higher than what is due to error.

2. Obtain the necessary understanding of internal control relevant to the audit to design audit procedures that are appropriate in the circumstances, provided that the objective is not to express an opinion on the effectiveness of Prime Oil Chemical Service Corporation's internal control.

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

4. Based on the evidence obtained, draw conclusions regarding the appropriateness of the management's adoption of accounting basis for going concern and whether there is any material uncertainty regarding events or circumstances that may cast significant doubt on Prime Oil Chemical Service Corporation's ability in continuing operations. If we believe that a material uncertainty exists with respect to any of such events or circumstances, we shall draw the attention of users of the Standalone Financial Statements to the relevant

~8~

disclosures in the Standalone Financial Statements or amend our audit opinion when such disclosures are inappropriate. Our conclusion is based on the audit evidence obtained up to the date of the audit report. However, future events or circumstances may cause Prime Oil Chemical Service Corporation to cease to have the ability of continuing operations.

1. Evaluate whether the overall presentation, structure and content of the Consolidated Financial Statements (including the related notes) and the Standalone Financial Statements fairly present the relevant transactions and events.

2. Obtain sufficient and appropriate audit evidence on the financial information that constitutes Prime Oil Chemical Service Corporation's financial position to provide our opinion on the Consolidated Financial Statements. We are responsible for the direction, supervision and execution of the audit project and for developing audit opinions of Prime Oil Chemical Service Corporation.

Our communication with the governance units includes the planned scope and timing of our audits and significant audit findings (including any significant deficiencies in internal control identified during our audits)

We also provide the governing unit with a statement that the independence-regulated personnel of our firm have complied with the ROC Code of Professional Ethics with respect to independence and communicate with the governing unit concerning all relationships and other matters (including related safeguards) that may be perceived to affect the independence of the accountant.

From the matters communicated with the governance unit, we determine the key inspection items for Prime Oil Chemical Service Corporation’s 2021 Consolidated Financial Statements. We describe these matters in our audit report unless law or regulation precludes public disclosure about such matters or when, in extremely rare circumstances, we determine that a matter would not be communicated in our report since the adverse consequences of doing so would reasonably be expected to outweigh the public benefits of such communication.

~9~

PwC, Taiwan

Huang, Pei-Chuan

Accountant

Pan, Hui-Ling

Financial Supervisory Commission Approval No.: Jin-Guan-Zheng-Shen-Zi No. 1100348083 Previously Securities and Futures Commission, Ministry of Finance

Approval certification number: (1999) Tai-Cai-Zheng (VI) No. 95577

March 24, 2022

~10~

Prime Oil Chemical Service Corporation and its subsidiaries Consolidated balance sheets December 31,2021 and December 31, 2020

Assets	Note 6 (1) 6 (4) 6 (5) 6(5) and 12(2) 6 (2) 6(3) 6(4) and 8 6(6) and 8 6 (7) 6 (22) 8	December31,2021 Amount % $ 135,111 8 26,026 2 717 - 42,387 3 - - 8,457 - 212,698 13 83,109 5 36,214 2 2,301 - 1,179,274 72 47,957 3 4,241 - 5,660 1 64,026 4 1,422,782 87 $ 1,635,480 100	Unit: Thousand NTD December31,2020 Amount % $ 142,716 9 16,489 1 244 - 45,164 3 1,960 - 15,789 1 222,362 14 67,074 4 42,980 3 - - 1,151,499 70 84,557 5 5,408 - 5,252 - 58,896 4 1,415,666 86 $ 1,638,028 100
		Amount $ 135,111 26,026 717 42,387 - 8,457 212,698 83,109 36,214 2,301 1,179,274 47,957 4,241 5,660 64,026 1,422,782 $ 1,635,480	Amount $ 142,716 16,489 244 45,164 1,960 15,789 222,362 67,074 42,980 - 1,151,499 84,557 5,408 5,252 58,896 1,415,666 $ 1,638,028
Current assets 1100 Cash and cash equivalents 1136 Financial assets measured at amortized cost - current 1150 Notes receivable, net 1170 Accounts receivable, net 1200 Other receivables 1410 Prepayments 11XX Total current assets Non-current assets 1510 Financial assets at fair value through profit or loss - non-current 1517 Financial assets at fair value through other comprehensive income - noncurrent 1535 Financial assets measured at amortized cost - non-current 1600 Property, Plant and Equipment 1755 Right-of-use assets 1780 Intangible asset 1840 Deferred tax assets 1920 Refundable deposits 15XX Total non-current assets 1XXX Total Assets

(Continued)

~11~

Prime Oil Chemical Service Corporation and its subsidiaries Consolidated balance sheets December 31,2021 and December 31, 2020

Unit: Thousand NTD

Liabilities and Stockholders’ Equity

December 31, 2021 December 31, 2020 Note Amount % Amount % 6 (9) $ 103,600 6 $ 98,800 6 6 (9) 38,500 2 45,500 3 6,881 - 6,881 - 6 (11) 60,518 4 76,996 5 15,617 1 27,143 2 23,363 2 53,070 3 6 (10) 69,955 4 55,796 3 318,434 19 364,186 22 6 (10) 294,365 18 171,492 11 6 (13) 25,185 2 21,923 1 6 (22) 4,052 - 2,905 - 15,962 1 24,778 2 6 (12) 8,552 1 7,856 1 6,450 - 6,450 - 354,566 22 235,404 15 673,000 41 599,590 37 6 (14) 690,344 42 690,344 42 6 (15) 4,233 - 4,233 - 6(16) 187,193 12 171,221 11 13,064 1 - - 85,951 5 185,215 11 ( 18,778 ) ( 1 ) ( 13,064) ( 1) 962,007 59 1,037,949 63 473 - 489 - 962,480 59 1,038,438 63 9 11 $ 1,635,480 100 $ 1,638,028 100

Current liabilities 2100 Short-term borrowings 2110 Short-term bills payable 2150 Notes payable 2200 Other payables 2230 Current income tax liabilities 2280 Current lease liabilities 2300 Other current liabilities 21XX Total current liabilities Non-current liabilities 2540 Long-term borrowings 2550 Provisions for liabilities - non-current 2570 Deferred tax liabilities 2580 Non-current lease liabilities 2640 Net defined benefit liabilities - noncurrent 2645 Guarantee deposits received 25XX Total non-current liabilities 2XXX Total liabilities Equity attributable to shareholders of the parent company Share capital 3110 Common stock Additional paid-in capital 3200 Additional paid-in capital Retained earnings 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings Other equity interests 3400 Other equity interests 31XX Total equity attributable to shareholders of the parent company 36XX Non-controlling interests 3XXX Total equity Significant contingent liabilities and unrecognized contract commitments Significant events after the balance sheet date 3X2X Total liabilities and equity

The accompanying notes are an integral part of the consolidated financial statements and should be read in conjunction.

Managerial officer: Yeh Tang-jung

Chairperson: Liao Shu-chun

Accounting officer: Huang Yi-yin

~12~

Prime Oil Chemical Service Corporation and its subsidiaries Consolidated income statements January 1 to December 31,2021 and 2020

Unit: Thousand NTD (Except for earnings per share)

Item

2021 2020 Note Amount % Amount % 6 (8) (17) $ 466,109 100 $ 540,837 100 6 (20) (21) ( 310,978 ) ( 67) ( 285,989 ) ( 53) 155,131 33 254,848 47 6 (20) (21) ( 6,241 ) ( 1) ( 5,486 ) ( 1) ( 60,415 ) ( 13) ( 67,825 ) ( 13) ( 66,656 ) ( 14) ( 73,311 ) ( 14) 88,475 19 181,537 33 261 - 389 - 2,021 - 6,130 1 6 (18) 804 - 31 - 6 (19) ( 2,088 ) - ( 3,298 ) - 998 - 3,252 1 89,473 19 184,789 34 6 (22) ( 18,061 ) ( 4) ( 25,071 ) ( 5) $ 71,412 15 $ 159,718 29

4000 Operating income 5000 Operating cost 5900 Operating gross profits Operating expenses 6100 Selling and marketing expenses 6200 General and administrative expenses 6000 Total operating expenses 6900 Operating profit Non-operating income and expenses 7100 Interest income 7010 Other income 7020 Other gains or losses 7050 Financial costs 7000 Total non-operating income and expenses 7900 Profit before income tax 7950 Income tax expense 8200 Current period net profit

(Continued)

~13~

Prime Oil Chemical Service Corporation and its subsidiaries Consolidated income statements January 1 to December 31,2021 and 2020

Unit: Thousand NTD (Except for earnings per share)

Item

2021 2020 Note Amount % Amount % ( $ 1,980 ) - ($ 1,040 ) - 6(3) ( 3,346 ) ( 1) 2,634 - 6 (22) 396 - 208 - ( 4,930) ( 1) 1,802 - ( 5,464 ) ( 1) ( 10,104 ) ( 2) 6 (22) 1,093 - 2,021 1 ( 4,371) ( 1)( 8,083 ) ( 1) ($ 9,301) ( 2)($ 6,281 ) ( 1) $ 62,111 13 $ 153,437 28 $ 71,428 15 $ 159,724 29 ( 16) - ( 6 ) - $ 71,412 15 $ 159,718 29 $ 62,127 13 $ 153,443 28 ( 16) - ( 6 ) - $ 62,111 13 $ 153,437 28 6 (23) $ 1.03 $ 2.31 $ 1.03 $ 2.30

Other comprehensive income for the year (net) Items that will be reclassified to profit or loss 8311 Re-measurements of the defined benefit liability 8316 Unrealized valuation gain or loss on equity instruments at fair value through other comprehensive income 8349 Income tax related to components of other comprehensive income that is not reclassified to profit or loss 8310 Total amount of items that will not be reclassified to profit or loss Items that may be reclassified subsequently to profit or loss: 8361 Exchange Differences in Translating the Financial Statements of Foreign Operations 8399 Income taxes related to items that may be reclassified 8360 Total of Items that may be reclassified to profit or loss 8300 Other comprehensive income for the year (net) 8500 Total comprehensive income in the current period Net income attributable to: 8610 Shareholders of the parent company 8620 Non-controlling interests Total comprehensive income attributable to: 8710 Shareholders of the parent company 8720 Non-controlling interests Earnings per share 9750 Basic 9850 Diluted

The accompanying notes are an integral part of the consolidated financial statements and should be read in conjunction.

Chairperson: Liao Shu-chun Managerial officer: Yeh Tang-jung Accounting officer: Huang Yi-yin

~14~

Prime Oil Chemical Service Corporation and its subsidiaries Consolidated statements of changes in equity January 1 to December 31,2021 and 2020

Unit: Thousand NTD

Note 2020 Balance at January 1, 2020 Current period net profit Other comprehensive income recognized for the period Total comprehensive income in the current period Appropriation and distribution of retained earnings for FY2019 6(16) Legal reserve allocated Cash dividends Non-controlling interests Balance as of December 31, 2020 2021 Balance at January 1, 2021 Current period net profit Other comprehensive income recognized for the period Total comprehensive income in the current period Appropriation and distribution of retained earnings for FY2020 6(16) Legal reserve allocated Allocated special reserve Cash dividends Disposal of equity instruments at fair value through other comprehensive profit or loss 6(3) Balance at December 31, 2021	Note						Equity attributable to shareholders ofthe parent company	Equity attributable to shareholders ofthe parent company	Equity attributable to shareholders ofthe parent company	Equity attributable to shareholders ofthe parent company	Equity attributable to shareholders ofthe parent company	Equity attributable to shareholders ofthe parent company	Equity attributable to shareholders ofthe parent company	Equity attributable to shareholders ofthe parent company	Equity attributable to shareholders ofthe parent company			Non-controlling interests	Non-controlling interests		Totalequity
			Share capital - commonstock		Capitalsurplus			Retained earnings					Otherequityinterests				Total
							Legal reserve		Special reserve	Unappropriated retained earnings			Financial statements of foreign operations Table conversion of exchange differences	Unrealized gains or losses on financial assets measured at fair value through other comprehensive income
			$ 690,344 - - - - - - $ 690,344 $ 690,344 - - - - - - - $ 690,344		$ 4,233 - - - - - - $ 4,233 $ 4,233 - - - - - - - $ 4,233		$ 157,731 - - - 13,490 - - $ 171,221 $ 171,221 - - - 15,972 - - - $ 187,193		$ - - - - - - - $ - $ - - - - - 13,064 - - $ 13,064		$ 153,720 159,724 ( 832 ) 158,892 ( 13,490 ) ( 113,907 ) - $ 185,215 $ 185,215 71,428 ( 1,584 ) 69,844 ( 15,972 ) ( 13,064 ) ( 138,069 ) ( 2,003 ) $ 85,951		($ 2,909 ) - ( 8,083 ) ( 8,083 ) - - - ($ 10,992 ) ($ 10,992 ) - ( 4,371 ) ( 4,371 ) - - - - ($ 15,363 )		($ 4,706 ) - 2,634 2,634 - - - ($ 2,072 ) ($ 2,072 ) - ( 3,346 ) ( 3,346 ) - - - 2,003 ($ 3,415 )		$ 998,413 159,724 ( 6,281 ) 153,443 - ( 113,907 ) - $1,037,949 $1,037,949 71,428 ( 9,301 ) 62,127 - - ( 138,069 ) - $ 962,007		$ 5,075 ( 6 ) - ( 6 ) - - ( 4,580 ) $ 489 $ 489 ( 16 ) - ( 16 ) - - - - $ 473	$1,003,488 159,718 ( 6,281 ) 153,437 - ( 113,907 ) ( 4,580 ) $1,038,438 $1,038,438 71,412 ( 9,301 ) 62,111 - - ( 138,069 ) - $ 962,480

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

Chairperson: Liao Shu-chun

Managerial officer: Yeh Tang-jung

Accounting officer: Huang Yi-yin

~15~

Prime Oil Chemical Service Corporation and its subsidiaries Consolidated cash flow statements

January 1 to December 31,2021 and 2020

Cash flow from operating activities Profit before income tax for the year Adjustment for: Income and expenses having no effect on cash flows depreciation expense Allocations Gain on valuation of financial assets at fair value through profit or loss Exchange differences in Financial assets measured at amortized cost Financial costs Interest income Dividends income Disposal of property, plant and equipment Gain on lease modification Change in assets/liabilities related to operating activities Changes in operating assets Notes receivable, net Accounts receivable, net Other receivables Prepayments Changes in operating liabilities Notes payable Other payables Other current liabilities Net defined benefit liabilities Cash flow from operating activities Interest paid Interest received Income tax paid Dividend received Net cash generated by operating activities Cash Flow from Investing Activities Acquisition of financial assets at fair value through profit or loss Refund of share price due to capital reduction of financial assets at fair value through profit or loss Return of capital from financial assets at fair value through other comprehensive profit or loss Acquisition of financial assets measured at amortized cost Purchase of property, plant and equipment Disposal of property, plant and equipment Acquisition of intangible assets Increase in refundable deposits Net cash used in investing activities Cash Flow from Financing Activities Increase (decrease) in short-term bills payable Increase in short-term borrowings Decrease in short-term borrowings Borrowing of long-term loans (including portions due within one year or one operating cycle) Repayment of long-term loans (including portions due within one year or one operating cycle) Amount of principal payments on lease liabilities Cash dividends paid Non-controlling interests Net cash (outflow) inflow from financing activities Effects of exchange rate changes on the balance of cash held in foreign currencies Decrease in cash and cash equivalents Beginning of year cash and cash equivalents Cash and cash equivalents at the end of the year

Unit: Thousand NTD Note January 1 to December 31,2021 January 1 to December 31,2020 $ 89,473 $ 184,789 6 (6)(7)(20) 178,424 157,516 6 (20) 1,328 1,130 6 (2)(18) ( 2,533 ) ( 2,765 ) 6 (4) 463 2,593 6 (19) 2,088 3,298 ( 261 ) ( 389 ) ( 445 ) ( 650 ) 6 (18) ( 95 ) ( 359 ) 6 (7) ( 31 ) ( 474 ) ( 473 ) ( 111 ) 2,777 ( 9,498 ) 1,960 ( 1,786 ) 7,332 2,858 - ( 511 ) ( 8,798 ) 4,516 3 ( 22 ) ( 1,284 ) ( 1,173 ) 269,928 338,962 ( 2,088 ) ( 3,298 ) 261 389 ( 27,359 ) ( 14,546 ) 445 650 241,187 322,157 12 (3) ( 28,141 ) ( 31,877 ) 12 (3) 14,639 7,661 12 (3) 3,420 - ( 12,301 ) - 6 (24) ( 157,629 ) ( 304,542 ) 95 1,271 ( 161 ) ( 1,861 ) ( 5,130 ) ( 12,461 ) ( 185,208 ) ( 341,809 ) 6(25) ( 7,000 ) 34,500 509,000 722,800 ( 504,200 ) ( 707,600 ) 6(25) 200,400 165,000 ( 63,371 ) ( 29,003 ) 6(7)(25) ( 59,830 ) ( 59,058 ) 6(16) ( 138,069 ) ( 113,907 ) - ( 4,580 ) ( 63,070 ) 8,152 ( 514 ) ( 542 ) ( 7,605 ) ( 12,042 ) 142,716 154,758 $ 135,111 $ 142,716

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

Managerial officer: Yeh Tang-jung

Chairperson: Liao Shu-chun

Accounting officer: Huang Yi-yin

~16~

Prime Oil Chemical Service Corporation and its subsidiaries Notes to consolidated financial statements for the Years Ended December 31, 2021 and 2020

Unit: Thousand NTD (Unless otherwise specified)

I. Company History and Business Scope

Prime Oil Chemical Service Corporation (hereinafter referred to as the "Company") was established on October 1, 1978 and was listed on the Taiwan Stock Exchange on January 5, 1983. The Company and its subsidiaries (hereinafter collectively referred to as the "Group") are mainly engaged in chemical, oil tank storage and delivery services, general trading, solar power generation business and commercial real estate leasing.

II. Date and Procedures for Approval of Financial Statements

The Consolidated Financial Statements were approved and authorized for issuance by the Board of Directors on March 24, 2022.

III. Newly-released and amended standards and interpretations

• (I) The impact from adopting the newly released and revised International Financial Reporting Standards recognized by the Financial Supervisory Commission.

The following table summarizes the applicable newly released, corrected and amended standards and interpretations of the International Financial Reporting Standards recognized by the Financial Supervisory Commission in 2021:

New, Revised or Amended Standards and Interpretations Amendment to IFRS 4 "Extension of Provisional Exemption for Application of IFRS 9" Amendments to the IFRS 9, IAS 39, and IFRS 7, IFRS 4 and IFRS 16 “Interest Rate Benchmark Reform - Phase II.” Amendment to IFRS 16 "Rent Reduction associated with the COVID-19 pandemic after June 30, 2021.”	Effective Date Issued
	by IASB January 1, 2021 January 1, 2021 April 1, 2021

The Corporate Group believes that adopting the aforementioned IFRSs will not have a significant effect on the consolidated financial position and performance.

~17~

• (II) Impact of the newly released and amended IFRS recognized by the FSC not yet adopted by the Company.

The following table summarizes the applicable newly released, corrected and amended standards and interpretations of the International Financial Reporting Standards for 2022 issued by the IASB and recognized by the Financial Supervisory Commission:

New, Revised or Amended Standards and Interpretations Amendment to IFRS 3 "Update the index of the conceptual framework.” Amendment to IAS 16 "Property, plant and equipment: price before reaching the intended state of use" Amendment to IAS 37 "Onerous Contracts - Cost of Performing Contracts” “Annual Improvements 2018 - 2020 Cycle”	Effective Date Issued
	by IASB January 1, 2022 January 1, 2022 January 1, 2022 January 1, 2022

The Corporate Group believes that adopting the aforementioned IFRSs will not have a significant effect on the consolidated financial position and performance.

(III) IFRSs issued by the IASB but not yet recognized by the FSC.

The following table summarizes the applicable newly released, corrected and amended standards and interpretations of the International Financial Reporting Standards issued by the IASB but not yet recognized by the FSC:

New, Revised or Amended Standards and Interpretations IFRS 10 and IAS 28 amendments, Sale or contribution of assets between an investor and its associate or joint venture IFRS 17 - Insurance contracts Amendment to IFRS 17 “Insurance contracts.” Amendment to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 ―Comparative Information.” Amendment to IAS 1 "Classification of Liabilities as Current or Non-Current" Amendment to IAS 1 "Disclosure of Accounting Policies.” Amendment to IAS 8 "Disclosure of Accounting Policies.” Amendment to IAS 12 "Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

Effective Date Issued

by IASB Pending IASB decision January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023

The Corporate Group believes that adopting the aforementioned IFRSs will not have a significant effect on the consolidated financial position and performance.

~18~

IV. Summary of significant accounting policies

The principal accounting policies adopted in the preparation of the Consolidated Financial Statements are described below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(I) Compliance statement

The preparation of the Consolidated Financial Statements conforms to the International Financial Reporting Standards, International Accounting Standards, explanations and announcements of explanations (“IFRSs “) that are recognized by FSC.

(II) Basis of preparation

1. The consolidated financial statements have been prepared on a historical cost basis, except for the following significant items.

2. (1) Financial assets at fair value through profit or loss are measured at fair value.

3. (2) Financial assets at fair value through other comprehensive income are measured at fair value.

4. (3) The defined benefit liability is recognized as the net of the present value of the pension fund assets less the defined benefit obligation.

5. The preparation of financial statements in conformity with IFRSs requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Corporate Group's accounting policies. The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the consolidated financial statements are disclosed in Note 5.

(III) Basis of consolidation

1. The basis for preparation of consolidated financial statements

2. (1) The Corporate Group includes all of its subsidiaries in the preparation of consolidated financial statements. Subsidiaries are entities controlled by the Corporate Group. The Corporate Group controls the entity when the Corporate Group is exposed, or has rights, to variable returns from its involvement with the entity and can affect those returns through its power over the entity. Subsidiaries are included in the consolidated financial statements from the date the Corporate Group obtains control and are deconsolidated on the date control is lost.

3. (2) All significant intra-group transactions, balances and unrealized gains and losses between the Corporate Group and its subsidiaries have been eliminated in full. The accounting policies of the subsidiaries are consistent with the policies adopted by the Corporate Group.

4. (3) Profit or loss and other components of consolidated profit or loss are attributed to owners of the parent and noncontrolling interests; total consolidated profit or loss is also attributed to owners of the parent and noncontrolling interests, even if this results in a loss balance for noncontrolling interests.

~19~

1. Subsidiaries included in consolidated financial statements

Investor Investee Main Business The Company He Zhen Feng Co., Ltd. Real Estate Leasing The Company POCS POWER CO., LTD. Solar Power Industry The Company Prime Holdings Corporation (PHC) Shareholding and General Trading PHC Prime Solar Energy Co.,Ltd. Real Estate Development	Shareholding percentage (%)	Shareholding percentage (%)	Description
	December 31,	December 31,
	2021 69.47 100.00 100.00 100.00	2020 69.47 100.00 100.00 100.00
			Note

• Note 1: Prime Solar Energy Co., Ltd. is a subsidiary established in Cambodia through another subsidiary, Prime Holdings Corporation. In order for Prime Solar Energy Co., Ltd. to legally hold land in Cambodia, 51% of the shares are nominally held through local persons in accordance with local laws and regulations, but Prime Holdings Corporation still enjoys 100% equity and control in substance.

• Subsidiaries not included in consolidated financial statements: No such situation.

• Adjustments for subsidiaries with different balance sheet dates: No such situation.

• Significant restrictions: No such situation

• Subsidiaries that have non-controlling interests that are material to the Corporate Group: No such situation.

• (IV) Foreign currency translation

Items included in the financial statements of each entity within the Corporate Group are measured using the currency of the primary economic environment in which the entity operates (i.e., the functional currency). The currency of this Consolidated Financial Statement is presented in the Company’s functional currency “NTD.”

1. Foreign currency transactions and balances

2. (1) Foreign currency transactions are translated into the functional currency using the prevailing exchange rates on the dates of the transactions or valuation where items are remeasured. Foreign exchange gains and losses resulting from the settlement of such transactions are recognized in profit or loss in the period in which they arise.

3. (2) Monetary assets and liabilities denominated in foreign currencies at the period end are retranslated at the prevailing exchange rates at the balance sheet date. Exchange differences arising upon adjustments are recognized in profit or loss in the period in which they arise.

4. (3) Non-monetary assets and liabilities denominated in foreign currencies held at fair value through profit or loss are adjusted at the prevailing exchange rates at the balance sheet date; their translation differences are recognized in profit or loss in the period in which they arise. Non-monetary assets and liabilities denominated in foreign currencies held at

~20~

fair value through other comprehensive income are adjusted at the prevailing exchange rates at the balance sheet date; differences resulting from such translations are recognized in other comprehensive income; for those that are not measured at fair value are translated using the historical exchange rates at the dates of the initial transactions.

• (4) All foreign exchange gains and losses are presented in the Statements of Comprehensive Income under "other gains and losses."

• Translation of foreign operations

The operating results and financial positions of all the group entities and associates that have different functional currencies and from the presentation currency is translated into the presentation currency in the following manners:

  - (1) Assets and liabilities of each balance sheet presented are translated at the closing exchange rate at the date of that balance sheet;

  - (2) Income and expenses of each Statements of Comprehensive Income are translated at the average exchange rates of the period; and

  - (3) All differences resulting from exchanges are recognized in other comprehensive income.

• (V) Classification of current and non-current assets and liabilities

• Assets that meet one of the following criteria are classified as current assets:

  • (1) Assets arising from operating activities that are expected to be realized or are intended to be sold or consumed within the normal operating cycle.

  • (2) Assets held mainly for trading purposes.

  • (3) Assets that are expected to be realized within 12 months after the balance sheet date.

  • (4) Cash and cash equivalents, excluding restricted cash and cash equivalents and those that are to be exchanged or used to settle liabilities on at least 12 months after the balance sheet date.

The Corporate Group classifies all other assets that meet none of the above criteria as noncurrent assets.

1. Liabilities that meet one of the following criteria are classified as current liabilities:

2. (1) Liabilities that are expected to be settled within the normal operating cycle.

3. (2) Assets held mainly for trading purposes.

4. (3) Liabilities that are to be settled within 12 months after the balance sheet date;

5. (4) Liabilities for which the repayment date cannot be extended unconditionally to more than 12 months after the balance sheet date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issuance of equity instruments do not affect its classification.

The Corporate Group classifies all other liabilities that meet none of the above criteria as non-current liabilities.

(VI) Cash and cash equivalents

Cash equivalents refer to short-term, highly liquid investments that are readily convertible to known amount of cash and which are subject to an insignificant risk of changes in value. Time deposits that meet the above criteria and are held for the purposes of meeting short-term operating cash commitment are classified as cash equivalents.

(VII) Financial assets at fair value through profit and loss

1. Financial assets at fair value through profit or loss are financial assets that are not measured at amortized cost or fair value through other comprehensive income.

~21~

1. The Corporate Group adopts trade date accounting for the financial assets at fair value through profit or loss that belong to regular transactions.

2. At initial recognition, the Corporate Group measures the financial assets at fair value and recognizes their transaction costs in profit or loss. The Corporate Group subsequently measures the financial assets at fair value and recognizes such asset’s gain or loss in profit or loss.

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

1. Financial assets at fair value through other comprehensive income comprise equity instruments which are not held for trading, and for which the Company has made an irrevocable election at initial recognition to recognize changes in fair value in other comprehensive income or loss.

2. The Corporate Group adopts trade date accounting for the financial assets at fair value through other comprehensive income that belong to regular transactions.

3. At initial recognition, the Corporate Group measures the financial assets at fair value and recognizes their transaction costs in profit or loss. The Corporate Group subsequently measures the financial assets at fair value and recognizes such asset’s gain or loss in other comprehensive income. Cumulative gain or loss previously recognized in comprehensive income shall not be reclassified to profit or loss following the derecognition of the instrument and shall be reclassified to retained earnings. The Corporate Group recognizes the dividend income in profit or loss when the right to receive payment is established, future economic benefits associated with the dividend flows to the Company, and the amount of the dividend can be measured reliably.

(IX) Financial assets measured at amortized cost

1. Are those that meet all the following criteria:

2. (1) The objective of the Company’s business model is achieved by collecting contractual cash flows.

3. (2) The assets' contractual cash flows solely represent payments of principal and interest on the principal amount outstanding

4. The Corporate Group adopts trade date accounting for the financial assets measured at amortized cost that belong to regular transactions.

5. The Company’s time deposits which do not fall under cash equivalents are those with a short maturity period and are measured at the initial investment amount as the effect of discounting is immaterial.

(X) Accounts and notes receivables

1. are those with an unconditional legal right to receive considerations in exchange for transferred goods or rendered services.

2. The short-term accounts and notes receivable without bearing interest are subsequently measured at initial invoice amount as the effect of discounting is immaterial

(XI) Impairment of financial assets

At each balance sheet date, for financial assets measured at fair value through other comprehensive income and receivables or contract assets that contain significant financial

~22~

components, the Group measures the allowance for losses at the expected credit loss amount over 12 months, taking into account all reasonable and probable information, including forward-looking information, for those financial assets whose credit risk has not increased significantly since initial recognition. If the credit risk has increased significantly since initial recognition, the allowance for loss is measured at the expected credit loss over the remaining period. For accounts receivable or contract assets that do not contain significant financial components, the allowance for loss is measured at the expected credit loss over the period.

(XII) De-recognition of financial assets

The Corporate Group derecognizes a financial asset when the contractual rights to receive the cash flows from the financial asset expire.

- (XIII) Lessor Leasing Transaction Operating lease

Lease income from an operating lease (net of any incentives given to the lessee) is recognized in the profit or loss on a straight-line basis over the lease term.

(XIV) Property, Plant and Equipment

1. They are initially recorded at cost and relevant interests incurred during the construction period are capitalized.

2. Subsequent costs are included in the carrying amount of an asset or recognized as a separate asset only when it is probable that future economic benefits associated with the item will flow to the Corporate Group and the cost of the item can be measured reliably. The carrying amount of the part of replacement should be derecognized. All other maintenance expenses are recognized as current profit or loss as incurred.

3. Subsequent evaluation of the equipment applies the cost model and such equipment is depreciated under the straight-line method. If the components of the equipment are significant, depreciation is provided separately.

4. The Corporate Group reviews the residual value, useful life and depreciation method of each asset at the end of each fiscal year. If the expected value of the residual value and useful life differs from previous estimates or if there is a significant change in the expected pattern of consumption of future economic benefits embodied in the asset, the change in accounting estimate is accounted for in accordance with IAS 8, "Accounting Policies, Changes in Accounting Estimates and Errors" from the date of the change. Useful life of each asset.

Warehouse	2~35 years	Lease	3~10 years
facilities		improvement
Transport	5~10 years	Lease assets	2~15 years
Equipment
Office Equipment	3~5 years	Other Equipment	15~25 years

(XV) Lessee Leasing Transaction – Right-of-use Assets/Leasing liabilities

1. Leased assets are recognized as right-of-use assets and leasing liabilities as of the date they become available to the Corporate Group. When a lease contract is a short-term lease or a lease of a low-value asset, the lease payment is recognized as an expense over the leasing period using the straight-line method.

~23~

1. Leasing liabilities are recognized at the commencement date of such lease at the present value of unpaid lease payments discounted by the interest rate on the Corporate Group's incremental borrowings. Such leasing payments are fixed payments, less any lease incentives that are entitled to be received.

Subsequent evaluation applies interest method to measure at amortized cost and recognized interest expenses over the lease life. When changes in lease tenor or lease payment do not result from amendments of lease agreements, the lease liabilities are remeasured and the right-of-use asset will be adjusted against any amount of remeasurement of such leasing liabilities.

1. Right-of-use assets are recognized at cost at the commencement date of the lease. The cost is the initial measurement amount of such leasing liabilities.

(XVI) Impairment of non-financial assets

The Corporate Group assesses at each balance sheet date the recoverable amounts of those assets where there is an indication that they are impaired. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell or its value in use. When the circumstances or reasons for recognizing impairment loss for an asset in prior periods no longer exist or diminish, the impairment loss is reversed, provided that the increased carrying amount resulting from such reversal should not exceed the face value prior to the impairment and net of depreciation or amortization.

(XVII) Loans

1. comprises of long-term and short-term bank borrowings. Loans are recognized initially at fair value, net of transaction costs incurred. Loans are subsequently stated at amortized cost; any difference between the proceeds (net of transaction costs) and the redemption value is recognized in profit or loss over the period of the loans using the effective interest method.

2. Fees paid on the establishment of loan facilities are recognized as transaction costs of the loan to the extent that it is probable that some or all the facility will be drawn down. In this case, the fees are deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all the facility will be drawn down, such fees are capitalized as a pre-payment and amortized over the respective period of the facilities.

(XVIII) De-recognition of financial liabilities

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expired.

(XIX) Provision

Provisions (de-commissioning liabilities) arise when the Company has a present legal or constructive obligation because of past events and it is probable that an outflow of economic resources will be required to settle the obligation and the amount of the obligation can be reliably estimated. Provisions are measured at the amount of the expenditures required to settle underlying obligation on the balance sheet date. Provisions shall not be recognized for future operating losses.

• (XX) Employee benefits

• Short-term employee benefits

~24~

Short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid with respect to the service rendered by employees in a period and should be recognized as expense in that period when the employees render service.

1. Pensions

(1) Defined contribution plans

For defined contribution plans, the contributions are recognized as pension expense when they are due on an accrual basis. Pre-paid contributions are recognized as an asset to the extent of a cash refund or a reduction in the future payments.

• (2) Defined benefit plans

  • A. Net obligation under a defined benefit plan is defined as the present value of an amount of pension benefits that employees will receive on retirement for their services with the Corporate Group in current period or prior periods. The liability recognized in the balance sheet in respect of defined benefit pension plans is the present value of the defined benefit obligation at the balance sheet date less the fair value of plan assets. The net defined benefit obligation is calculated annually by independent actuaries using the projected unit credit method. The rate used to discount is determined by using interest rates of high-quality corporate bonds that are denominated in the currency in which the benefits will be paid, and that have terms to maturity approximating to the terms of the related pension liability; when there is no deep market in high-quality corporate bonds, the Corporate Group uses yield rates of government bonds (at the balance sheet date) instead.

  • B. Remeasurements arising from defined benefit plans are recognized in other comprehensive income of the period and presented in retained earnings.

  • C. The related expenses for prior service costs are recognized immediately in the profit or loss.

• Employees' compensation and directors' and supervisors' remuneration

Employees’ compensation and directors’ and supervisors’ remuneration are recognized as expense and liability, provided that such recognition is required under a legal or constructive obligation and those amounts can be reliably estimated. Any difference between the resolved amounts and the subsequently actual distributed amounts is accounted for as changes in accounting estimates If employee compensation is paid by shares, the Company calculates the number of shares based on the closing price on the immediate day before the board meeting resolution.

- (XXI) Employee share based payment

For the equity-settled share-based payment arrangements, the employee services received are measured at the fair value of the equity instruments granted at the payment date and are recognized as compensation cost over the vesting period. The Company’s equity is then adjusted accordingly. The fair value of the equity instruments granted shall reflect the impact of market vesting conditions and non-market vesting conditions Compensation cost is subject to adjustment based on the service conditions that are expected to be satisfied and the estimates of the number of equity instruments that are expected to vest under the non-market vesting conditions. Ultimately, the amount of compensation cost recognized is based on the number of equity instruments that are eventually vested.

(XXII) Income tax

1. Income tax comprises of current and deferred income tax. Tax is recognized in the profit or loss, except to the extent that it relates to items recognized in other

~25~

comprehensive income or items recognized directly in equity, in which cases the tax is recognized in other comprehensive income or equity

1. The current income tax expense is calculated based on the tax laws enacted or substantively enacted at the balance sheet date. The management periodically evaluates implementations taken in tax returns with respect to situations in accordance with applicable tax regulations. It establishes provisions where appropriate based on the amounts expected to be paid to the tax authorities. An additional tax is levied on the unappropriated retained earnings and is recorded as income tax expense in the year the shareholders resolve to distribute the earnings.

2. Deferred income tax is recognized, using the balance sheet liability method, on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated balance sheet. Deferred income tax is provided on temporary differences arising on investments in subsidiaries and associates, except where the timing of the reversal of the temporary difference is controlled by the Corporate Group and it is probable that the temporary difference will not reverse in the foreseeable future Deferred income tax is determined according to tax rates (and laws) that have been enacted or substantially enacted by the balance sheet date and are expected to apply when the related deferred income tax asset is realized, or the deferred income tax liability is settled.

3. Deferred income tax assets are recognized only to the extent that it is probable that future taxable profit will be available against which the temporary differences can be utilized. At each balance sheet date, unrecognized and recognized deferred income tax assets are reassessed.

(XXIII) Share capital

1. Ordinary shares are classified as equity.

2. Where the Company repurchases the Company’s equity share capital that has been issued, the consideration paid, including any directly attributable incremental costs (net of income taxes) is deducted from equity attributable to the Company’s equity holders. Where such shares are subsequently reissued, the difference between their book value and any consideration received, net of any directly attributable incremental transaction costs and the related income tax effects, is included in equity attributable to the Company’s equity holders.

(XXIV) Dividends

Dividends are recorded in the Company’s financial statements in the period in which they are resolved by the Company’s shareholders. Cash dividends are recorded as liabilities.

(XXV) Revenue recognition

1. Rental income

The Corporate Group provides chemical and oil tanks for lease in accordance with operating lease standards and the rental income from such operating lease is recognized in profit or loss on a straight-line basis according to rent determined by the leasing agreement.

1. Tank operations revenue

The Corporate Group provides chemical and oil tanks for lease and offers chemicals

~26~

and oil loading services. Revenue is recognized in the reporting period in which the services are provided to customers based on actual loading and unloading capacity and contracted rates.

3. Electricity sales revenue

The Corporate Group recognizes revenue when the electricity generated from solar power generation equipment is transferred to customers. Once the electricity is generated, it is transmitted to the buyer through the distribution system. The buyer has discretion over the access and price of the electricity sold and the revenue is calculated based on the contracted rate and the number of kilowatt-hours generated per month.

(XXVI) Business Operations Department

The Group's operating segment information is reported in a consistent manner with the internal management reports provided to the chief operating decision-maker. The chief operating decision maker is responsible for allocating resources to the operating divisions and evaluating their performance, and the chief operating decision-maker of the Corporate Group is identified as the Group Chairperson.

V. Significant Accounting Estimations and Judgments, and Main Sources of Assumption Uncertainties

In preparation of the Consolidated Financial Statements, the management has made judgements in applying the Corporate Group’s accounting policies and made critical accounting assumptions and estimates concerning future events based on the circumstances on the balance sheet date. Assumptions and estimates may differ from the actual results and are continuously evaluated and adjusted based on historical experience and other factors. Such estimates and assumptions have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year. The Corporate Group has no significant accounting estimates and assumptions. The significant judgment used in the accounting policy is the classification of financial assets, as described below.

Impairment assessment of other equipment (property, plant and equipment)

In the asset impairment evaluation process, the Corporate Group relies on subjective judgment and based on asset usage patterns and industry characteristics to determine the independent cash flows, the useful life and potential future revenues and expenses of a specific asset.

VI. Statements of main accounting items

(I) Cash and cash equivalents

Cash on hand and working capital Checking accounts and demand deposits Time deposits	December 31, 2021 $ 210 101,251 33,650 $ 135,111	December 31, 2020
		$ 217 83,849 58,650 $ 142,716

1. The Corporate Group associates 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.

2. The Group has not pledged the above cash and cash equivalents.

~27~

(II) Financial assets at fair value through profit and loss

Item Non-current items: Financial assets at fair value through profit and loss Investment in private equity Valuation adjustment Total	December 31, 2021 $ 70,196 12,913 $ 83,109	December 31, 2020
		$ 56,694 10,380 $ 67,074

1. Gain and loss recognized for financial assets at fair value through profit or loss held by the Corporate Group was $2,533 and $2,765 in 2021 and 2020, respectively.

2. The Group has not pledged any financial assets at fair value through profit or loss.

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

Item Non-current items: Equity instruments Stock not listed on TWSE, TPEx or the emerging market Valuation adjustment Total	December 31, 2021 $ 33,440 2,774 $ 36,214	December 31, 2020
		$ 36,879 6,101 $ 42,980

1. The Corporate Group has elected to classify its strategic investments in equity stock as financial assets at fair value through other comprehensive income. The fair values of these investments were $36,214 and $42,980 as of December 31, 2021 and December 31, 2020, respectively.

2. As of 2021, the Corporate Group derecognized stocks with a carrying value of $5,423 due to a capital reduction by the target company and reclassified the cumulated loss of $2,003 to unappropriated earnings. No such situation occurred in 2020.

3. The details of the financial assets measured at fair value through other comprehensive income that were recognized in comprehensive income are as follows:

Change in fair value recognized in other comprehensive Income Cumulative gains (losses) reclassified to retained earnings due to derecognition Dividends income recognized in profit or loss and still held at the end of the period De-recognized during the period	($	2021 3,346) 2,003 223 222 445	$	2020 2,634 - 650 - 650
	$		$
	$		$
	$		$

~28~

1. Without considering the collaterals held or other credit enhancements, the amount of financial assets at fair value through other comprehensive income that best represented the Corporate Group's maximum exposure to credit risk was $36,214 and $42,980 as of December 31, 2021 and December 31, 2020, respectively.

2. The Company has not pledged any financial assets at fair value through other comprehensive income.

(IV) Financial assets measured at amortized cost

Item Current items: The term deposit with original maturity over three months Trust account Total Non-current items: Restricted asset	December 31, 2021 $ 10,000 16,026 $ 26,026 $ 2,301	December 31, 2020
		$ - 16,489 $ 16,489 $-

1. The details of the financial assets measured at amortized cost that were recognized in the profit and loss are as follows:

Interest income loss on valuation	$ (	2021 6 463) 457)	$ (	2020 13 2,593) 2,580)
	($		($

1. Without considering the collaterals held or other credit enhancements, the amount of financial assets measured at amortized cost that best represented the Corporate Group's maximum exposure to credit risk was $28,327 and $16,489 as of December 31, 2021 and December 31, 2020, respectively.

2. Information about the financial assets measured at amortized cost that were pledged to others as collaterals is provided in Note 8.

3. Risk information about the relative financial assets measured at amortized cost is provided in Note 12(2)

4. On December 22, 2016, the Corporate Group entered into a contract for the construction of a solar power generation system (hereinafter referred to as the "construction contract") and a contract for the purchase of solar power generation system equipment (hereinafter referred to as the "purchase contract") with Chunghwa Telecom Vietnam Co. Ltd. to construct a solar power generation system in Cambodia. The total construction price was US$7,750 thousand. On December 28, 2016, the Company trusted US$6,010 thousand by wire transfer to a thirdparty financial institution; as of December 31, 2021, and December 31, 2020, the balance of

~29~

the trust account was US$580 thousand, which is shown as "financial assets measured at amortized cost - current" due to the restricted use.

1. According to the construction contract, the construction of the solar power generation system in the preceding paragraph should be completed within one year and the amount in trust account has been paid to Chunghwa Telecom Vietnam Co. Ltd. However, Chunghwa Telecom Vietnam Co., Ltd. refused to fulfill its obligations under the above "construction contract" in the third quarter of 2017. In view of the aforementioned situation, the Company sent a formal letter to Chunghwa Telecom Vietnam to urge Chunghwa Telecom Vietnam to perform its obligations under the construction contract within the deadline, however after the expiration of the reminder period, Chunghwa Telecom Vietnam’s contract obligations remained unfulfilled. Hence the Company legally terminated the construction contract. The Company has filed a. lawsuit for civil damages with the Taiwan Taipei District Court (TDC) in April, 2018.

2. In December 2020, the Company received a notice of judgment from the TDC denying the Company's request. After consulting with the attorney, the Company filed an appeal with the Taiwan High Court in January 2021.

3. (V) Notes and accounts receivable

Note receivable Trade receivable	December 31, 2021 $ 717 $ 42,387	December 31, 2020
		$ 244 $ 45,164

1. The aging analysis of notes and accounts receivable is as follows

Not Past Due	December 31, 2021 December 31, 2020 Trade receivable Note receivable Trade receivable Note receivable	December 31, 2021 December 31, 2020 Trade receivable Note receivable Trade receivable Note receivable	December 31, 2021 December 31, 2020 Trade receivable Note receivable Trade receivable Note receivable	December 31, 2021 December 31, 2020 Trade receivable Note receivable Trade receivable Note receivable
	Trade receivable
	$ 42,387	$ 717	$ 45,164	$ 244

The above is an aging report based on the number of days past due.

1. As of December 31, 2021, and December 31, 2020, the balance of receivables (including notes receivables) are generated from the contracts between the Corporate Group and its customers. And as of January 1, 2020, the balance of receivables generated from such contracts was $35,799.

2. The Corporate Group does not hold any collateral.

3. Without considering the collaterals held or other credit enhancements, the number of notes receivables that best represented the Corporate Group's maximum exposure to credit risk was $717 and $244 as of December 31, 2021 and December 31, 2020, respectively; the amount of accounts receivables that best represented the Corporate Group's maximum exposure to credit risk was $42,387 and $45,164 as of December 31, 2021 and December 31, 2020, respectively.

4. Please refer to Note 12, (2) for the related credit risk information of accounts receivable.

~30~

(VI) Property, Plant and Equipment

January 1 Cost Accumulated depreciation and impairments January 1 Addition Number of Transfers depreciation expense Net exchange difference December 31 December 31 Cost Accumulated depreciation and impairmen	Land $45,278 - $45,278 $45,278 - - - ( 1,274) $44,004 $44,004 t - $44,004	Warehousing equipment $ 629,277 ( 363,858) $ 265,419 - $ 265,419 52,724 14,019 ( 64,445) - $ 267,717 $ 650,880 ( 383,163) $ 267,717	Warehousing	Transport Equipment $ 8,161 ( 3,945) $ 4,216 - $ 4,216 2,611 100 ( 1,185) - $ 5,742 $ 10,001 ( 4,259) $ 5,742	Office Equipment $ 1,648 ( 1,278) $ 370 - $ 370 54 - ( 85) - $ 339 $ 521 ( 182) $ 339	Lease improvement $ 1,037 ( 750) $ 287 - $ 287 - - ( 139) - $ 148 $ 884 ( 736) $ 148	Lease assets $909,441 ( 878,773) $ 30,668 - $ 30,668 - - ( 11,066) - $ 19,602 $ 86,132 ( 66,530) $ 19,602	2021 Other Equipment $864,658 ( 100,655) $764,003 - $764,003 78,393 20,328 ( 43,566) ( 3,676) $815,482 $959,531 ( 144,049) $815,482	Construction in progress Total $ 41,258 $2,500,758 - ( 1,349,259) $ 41,258 $1,151,499 - - $ 41,258 $1,151,499 19,429 153,211 ( 34,447) - - ( 120,486) - ( 4,950) $ 26,240 $1,179,274 $ 26,240 $1,778,193 - ( 598,919) $ 26,240 $1,179,274
									progress $ 41,258 - $ 41,258 - $ 41,258 19,429 ( 34,447) - - $ 26,240 $ 26,240 - $ 26,240

~31~

January 1 Cost Accumulated depreciation and impairments January 1 Addition Amount transferred due to disposal Amount transferred due to disposal (Note) depreciation expense Net exchange difference December 31 December 31 Cost Accumulated depreciation and	Land $ 47,667 - $ 47,667 $ 47,667 - - - - ( 2,389) $ 45,278 $ 45,278 -	Warehousing ~~equipment~~ $567,780 ( 315,860) $251,920 $251,920 61,497 - - ( 47,998) - $265,419 $629,277 ( 363,858)	Warehousing	Transport ~~Equipment~~ $ 7,127 ( 5,041) $ 2,086 $ 2,086 4,162 ( 912) - ( 1,120) - $ 4,216 $ 8,161 ( 3,945)	Office E~~quipmen~~t $ 1,648 ( 1,200) $ 448 $ 448 - - - ( 78) - $ 370 $ 1,648 ( 1,278)	Lease im~~proveme~~nt $ 1,037 ( 687) $ 350 $ 350 - - - ( 63) - $ 287 $ 1,037 ( 750)	Lease im~~proveme~~nt	Lease assets $909,441 ( 866,025) $ 43,416 $ 43,416 - - - ( 12,748) - $ 30,668 $909,441 ( 878,773)	2020 ~~Other~~ E~~quipmen~~t $634,198 ( 63,058) $571,140 $571,140 237,660 - - ( 37,624) ( 7,173) $764,003 $864,658 ( 100,655)	Construction ~~in progress~~ Total $13,952 $ 2,182,850 - ( 1,251,871) $13,952 $ 930,979 $13,952 $ 930,979 27,975 331,294 - ( 912) ( 669) ( 669) - ( 99,631) - ( 9,562) $41,258 $ 1,151,499 $41,258 $ 2,500,758 - ( 1,349,259)

~32~

impairment

==> picture [633 x 11] intentionally omitted <==

Note: Transfers during the period represents $669 transferred to intangible assets .

~33~

1. The capitalized amount of borrowing costs of property, plant and equipment and the interest rate range.

Capitalized amount Capitalized interest rate range	2021 $ 6,678 1.00%~1.54%	2020 $ 3,569
		0.95%~1.76%

1. Significant components of the Group's warehousing equipment, including tanks and pipelines, are depreciated over 2 to 35 years.

2. The Corporate Group’s property, plant and equipment showed no signs of impairment from January 1 to December 31, 2021 and 2020.

3. Please refer to Note 8 for information on the guarantees provided by the Group on property, plant and equipment.

(VII) Leasing arrangements - lessee

1. The subject assets of the Group's leases include land use rights, buildings and other equipment. Except for the land use rights, which have a period of 20 years, the remaining lease agreements normally have a period of 2 to 9 years.

Lease contracts are negotiated separately and include a variety of terms and conditions. There are no restrictions for the leased assets, except that they cannot be sub-leased, underleased or used as loan collateral.

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

Land use rights Buildings Other Equipment	December 31, 2021 Carrying amount $ 9,245 20,399 18,313 $ 47,957	December 31, 2020 Carrying amount $ 9,754 6,392 68,411 $ 84,557	December 31, 2020	December 31, 2020
				Carrying amount 9,754 6,392 68,411 84,557
	$	$

Land use rights Buildings Other Equipment		2021 Depreciation expense $ 509 6,975 50,454 $ 57,938		2020 Depreciation expense
				$ 423 6,974 50,488 $ 57,885

1. The additions to the Corporate Group’s right-of-use assets were $21,338 and $10,434 as of 2021 and 2020, respectively.

~34~

1. The information on profit and loss items related to lease contracts is as follows:

Items affecting current profit and loss Interest expenses on lease liabilities $ Expenses for leases of low-value assets Expenses for variable lease payments Gain on lease modification	2021 937 $ 359 6,941 31	2020 1,928 329 5,535 474

1. The Corporate Group’s total lease cash outflows were $68,067 and $66,850 as of 2021 and 2020, respectively, (of which $59,830 and $59,058 were for the principal of lease liabilities).

2. Effect of variable lease payments on lease liabilities

The subjects of the Group's lease agreements with variable lease payment terms are linked to the amount of electricity sales generated from the solar power generation sites. Solar power generation sites are built on rooftops. This type of lease is based on variable-rate payment terms and is only related to the amount of electricity sales. Variable lease payments related to the amount of electricity sales are recognized as expenses in the period in which the electricity sales occur.

• (VIII) Leasing arrangements - lessor

• The target assets leased by the Corporate Group are warehousing equipment. The lease agreements are usually for a period of 1 to 6 years and are negotiated on an individual basis and contain various terms and conditions.

• The Corporate Group recognized rental income of $292,527 and $375,100 in 2021 and 2020, respectively, based on operating lease agreements, in which no variable lease payments were included.

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

2021 2022 2023 2024~2027 Total	December 31, 2021 $ - 259,841 27,680 40,000 $ 327,521	December 31, 2020 $ 268,477 29,270 5,860 - $ 303,607	December 31, 2020

~35~

(IX) Short-term borrowings and bills payable

Nature of borrowings Bank borrowings Credit borrowings Short-term bills payable Nature of borrowings Bank borrowings Credit borrowings Short-term bills payable	December 31, 2021 $ 103,600 $ 38,500 December 31 2020	Range of interest rate 1.00%-1.3% 0.53%~0.78% Interest Rate 0.95%~2.06% 0.78%	Range of interest	Collateral None None Collateral None None
	, $ 98,800 $ 45,500

- (X) Long term borrowings

Nature of borrowings Borrowing Period and Repayment Method Interest Rate Collateral Credit borrowings Land Bank of Taiwan 2017.7.7~2022.7.7 The principal and interest shall be repaid in 48 equal installments commencing from (inclusive) August 7, 2018. 1.51% None Land Bank of Taiwan 2018.5.7~2023.5.7 The principal and interest shall be repaid in 48 equal installments commencing from (inclusive) June 7, 2019. 1.51% None Land Bank of Taiwan 2018.3.26~2025.3.26 The principal and interest shall be repaid in 84 equal installments commencing from (inclusive) April 26, 2018. 1.51% None Land Bank of Taiwan 2021.2.26~2031.2.26 The principal and interest shall be repaid in 120 equal installments commencing from (inclusive) March 26, 2021. 1.50% None Chinatrust Commercial Bank 2020.6.30~2023.6.30 15% of the principal shall be repaid in 5 installments commencing from (inclusive) June 30, 2021. The remaining principal shall be fully repaid at maturity 1.20% None	December 31,	December 31,
	$	2021 7,496 3,466 10,893 9,306 28,000

~36~

Chinatrust	2020.9.18~2023.6.30	1.20%	None	28,000
Commercial Bank	15% of the principal shall be
	repaid in 5 installments
	commencing from (inclusive)
	June 30, 2021. The remaining
	principal shall be fully repaid at
	maturity
Chinatrust	2021.12.29~2031.12.29	1.50%	None	38,000
Commercial Bank	The principal and interest shall
	be repaid in 120 equal
	installments commencing from
	(inclusive) January 29, 2022.
	(Note)
Secured borrowings
Land Bank of	2021.2.26~2031.2.26	1.50%	Other	67,243
Taiwan	The principal and interest shall		Equipment
	be repaid in 120 equal
	installments commencing from
	(inclusive) March 26, 2021.
Mega International	2018.12.26~2028.12.26	1.54%	Other	10,500
Commercial Bank.	The principal and interest shall		Equipment
	be repaid in 40 equal
	installments commencing from
	(inclusive) March 26, 2019.
	(Note)
Mega International	2019.12.4~2028.12.26	1.54%	Other	15,135
Commercial Bank.	The principal and interest shall		Equipment
	be repaid in 37 equal
	installments commencing from
	(inclusive) December 26, 2019.
	(Note)
Mega International	2020.3.31~2028.12.26	1.54%	Other	68,000
Commercial Bank.	The principal and interest shall		Equipment
	be repaid in 35 equal
	installments commencing from
	(inclusive) March 31, 2020.
	(Note)

~37~

Nature of borrowings Borrowing Period and Repayment Method Mega International Commercial Bank. 2021.3.31~2031.3.31 The principal and interest shall be repaid in 40 equal installments commencing from (inclusive) June 30, 2021. (Note) Mega International Commercial Bank. 2021.9.29~2031.3.31 The principal and interest shall be repaid in 35 equal installments commencing from (inclusive) September 29, 2021. Mega International Commercial Bank. 2021.12.29~2031.3.31 The principal and interest shall be repaid in 34 equal installments commencing from (inclusive) December 29, 2021. Far Eastern International Bank 2021.6.29~2026.6.29 0.55% of the principal shall be repaid in 60 installments commencing from (inclusive) July 29, 2021. The remaining principal shall be fully repaid at maturity. Less: Portions due within one year or one operating cycle (recorded as other current liabilities) Nature of borrowings Borrowing Period and Repayment Method Credit borrowings Land Bank of Taiwan 2017.7.7~2022.7.7 The principal and interest shall be repaid in 48 equal installments commencing from (inclusive) August 7, 2018. Land Bank of Taiwan 2018.5.7~2023.5.7 The principal and interest shall be repaid in 48 equal installments commencing from (inclusive) June 7, 2019.	Range of interest rate Collateral 1.515% Other Equipment 1.515% Other Equipment 1.515% Other Equipment 1.501% Other Equipment Range of interest rate Collateral 1.51% None 1.51% None	December 31, 2021
		4,750 14,615 42,400 16,439 364,243 ( 69,878) $ 294,365 December 31, 2020
		$ 20,195 5,869

~38~

Land Bank of	2018.3.26~2025.3.26	1.51%	None	14,139
Taiwan	The principal and interest
	shall be repaid in 84 equal
	installments commencing
	from (inclusive) April 26,
	2018.
Chinatrust	2020.6.30~2023.6.30	1.20%	None	40,000
Commercial Bank	15% of the principal shall be
	repaid in 5 installments
	commencing from (inclusive)
	June 30, 2021. The remaining
	principal shall be fully repaid
	at maturity
Chinatrust	2020.9.18~2023.6.30	1.20%	None	40,000
Commercial Bank	15% of the principal shall be
	repaid in 5 installments
	commencing from (inclusive)
	June 30, 2021. The remaining
	principal shall be fully repaid
	at maturity

~39~

Nature of borrowings Borrowing Period and Repayment Method Range of interest rate Collateral Secured borrowings Mega International Commercial Bank. 2018.12.26~2028.12.26 The principal and interest shall be repaid in 40 equal installments commencing from (inclusive) March 26, 2019. (Note) 1.44% Other Equipment Mega International Commercial Bank. 2019.12.4~2028.12.26 The principal and interest shall be repaid in 37 equal installments commencing from (inclusive) December 26, 2019. (Note) 1.44% Other Equipment Mega International Commercial Bank. 2020.3.31~2028.12.26 The principal and interest shall be repaid in 35 equal installments commencing from (inclusive) March 31, 2020. (Note) 1.44% Other Equipment Less: Portions due within one year or one operating cycle (recorded as other current liabilities)	December 31,
	2020 12,000 17,297 77,714
	227,214 ( 55,722) $ 171,492

Note: The Corporate Group entered into a long-term loan agreement with Mega International Commercial Bank (Mega Bank) for a facility amount of $120,000 in 2018. The financial ratio limits for the duration of the loan are that the current ratio should be maintained at 85% or more and the debt ratio should be maintained at 150% or less. The aforementioned ratios are calculated based on the annual consolidated financial statements and are reviewed annually. If the aforementioned financial review criteria are not met, the interest rate on this loan will be increased by 0.1% from the day after the violation to the day before the improvement. The Corporate Group's consolidated financial statements for 2021 did not meet this review, but if the bank increases the interest rate, there should be no significant impact on the Group.

(XI) Other payables

Equipment payables Employees' bonuses and directors' and supervisors' remuneration payable Salary payables Others	December 31, 2021 $ 34,582 5,788 7,582 12,566 $ 60,518	December 31, 2020
		$ 42,262 11,974 9,607 13,153 $ 76,996

~40~

(XII) Pensions

1. Defined benefit plan

In accordance with the Labor Standards Act, the Company and its domestic subsidiaries have established a defined benefit pension plan that applies to the years of service prior to the implementation of the Labor Pension Act on July 1, 2005 for all regular employees, and to the subsequent years of service for employees who choose to continue to be subject to the Labor Standards Act after the implementation of the Labor Pension Act. In addition, in the fourth quarter of 2010, the Company established a new pension plan for commissioned employees, who are not subject to the Labor Standards Act. For employees who meet the retirement criteria, pension payments are calculated based on the years of service and the average salary for the six months prior to retirement, with two bases for each year of service up to (inclusive) 15 years and one base for each year of service over 15 years, subject to a maximum accumulation of 45 bases. The years of service of the commissioned employees subject to the Labor Pension Act is calculated at 6% of the total salary during the term of appointment. The Company contributes monthly to pension funds at 8% of total salaries. The pension funds for regular employees and commissioned employees are deposited in the name of the Supervisory Committee of Labor Retirement Reserve in the Trust Department of Bank of Taiwan and Taishin International Bank, respectively. In addition, the Company estimates the balances of the pension funds before the end of each year. If the balances are not sufficient to pay the pensions based on the aforementioned calculations to eligible employees in the following year, the Company will make a one-time catch-up with the difference before the end of March of the following year.

(2) The amounts recognized in the balance sheet are as follows:

Present value of defined benefit obligation Fair value of the plan asset Net liabilities recognized in balance sheet	December 31, 2021 $ 25,423 ( 16,871) $ 8,552	December 31, 2020
		$ 32,450 ( 24,594) $ 7,856

~41~

(3) changes of net liabilities are as follows:

2021 Balance as of January 1 Current service cost Interest expense (revenue) Remeasurements: Return of plan asset (excluding amounts attributable to interest income or expense) Effect of changes in financial assumptions Effect of changes in demographic assumptions Experience adjustment Pension paid Pension fund contribution Balance at December 31 2020 Balance as of January 1 Current service cost Interest expense (revenue) Remeasurements: Return of plan asset (excluding amounts attributable to interest income or expense) Effect of changes in demographic assumptions Experience adjustment Pension fund contribution Balance at December 31	Present value of defined benefit obligation Fair value of theplan asset	Present value of defined benefit obligation Fair value of theplan asset	Net defined benefit liabilities
	$ 32,450 ($ 24,594) 186 - 88 ( 67) 32,724 ( 24,661) - ( 230) ( 1,178) - 24 - 3,367 - 2,213 ( 230) ( 9,514) 9,514 - ( 1,494) $ 25,423 ($ 16,871) Present value of defined benefit obligation Fair value of theplan asset		$ 7,856 186 21 8,063 ( 230) ( 1,178) 24 3,367 1,983 - ( 1,494) $ 8,552 Net defined benefit liabilities
	$ 30,447 254 192 30,893 - 1,265 292 1,557 - $ 32,450	($ 22,458) - ( 141) ( 22,599) ( 517) - - ( 517) ( 1,478) ($ 24,594)	$ 7,989 254 51 8,294 ( 517) 1,265 292 1,040 ( 1,478) $ 7,856

~42~

• (4) Bank of Taiwan was commissioned to manage the fund of the Company’s defined benefit pension plan in accordance with the fund’s annual investment and utilization plan and the “Regulations for Revenues, Expenditures, Safe guard and Utilization of the Labor Retirement Fund” (Article 6: The scope of utilization for the Fund includes deposit in domestic or foreign financial institutions, investment in domestic or foreign listed, over-the-counter or private placement equity securities, investment in domestic or foreign real estate secularization products, etc.). Such utilization is supervised by the Labor Funds Supervisory Committee. With regard to the utilization of the fund, its minimum earnings in the annual distributions on the final financial statements shall be no less than the earnings attainable from the amounts accrued from two-year time deposits with the interest rates offered by local banks. If the earnings is less than aforementioned rates, government shall make payment for the deficit after being authorized by the competent authority. The Company has no right to participate in managing and operating that fund and hence the Company is unable to disclose the classification of plan assets fair value in accordance with IAS 19 paragraph 142. The composition of fair value of plan assets as of December 31, 2021 and 2020 is given in the Annual Labor Retirement Fund Utilization Report announced by the government The Company’s pension accounts with Taishin International Bank have been fully allocated to demand deposit.

• (5) The principal actuarial assumptions used are summarized as follows:

Discount rate Future salary increase rate	2021 0.70% 2.00%	2020 0.30%
		2.00%

Assumptions regarding future mortality experience are set based on actuarial advice in accordance with published statistics and experience in each territory.

Due to the change of the main actuarial assumption, the present value of defined benefit obligation is affected. The analysis is as follows:

December 31, 2021 Effect on the present value of defined benefit obligation December 31, 2020 Effect on the present value	Discount rate Increase 0.25% Decrease 0.25% ($ 709) $ 738 ($ 800) $ 834		Future salary increase rate	Future salary increase rate
				Decrease 0.25% ($ 482) ($ 570)

~43~

of defined benefit obligation

The sensitivity analysis above was based on one assumption that changed while the other conditions remain unchanged. In practice, more than one assumption may change all at once. The methods of analyzing sensitivity and the method of calculating net pension liability in the balance sheet are the same.

The sensitivity analysis has been prepared using approaches and assumptions the same as last period.

• (6) Expected contributions to the defined benefit pension plans of the Company for the year 2022 amount to $1,458.

• (7) As of December 31, 2021, the weighted average duration of the retirement plan is 11 years. The maturity analysis of pension payments is as follows:

In less than 1 year 1-2 years 2-5 years In more than 5 years	$ 861 793 4,092 21,817 $ 27,563

2. Defined contribution plan

the Company has established a defined contribution pension plan under the Labor Pension Act covering all regular employees with domestic citizenship. The Company contributes monthly no less than 6% of salaries as labor pensions to employees' personal accounts at the Bureau of Labor Insurance for employees who choose to apply the labor pension system under the “Labor Pension Act.” Payments of employee pensions are made in the form of monthly pensions or one-time lump-sum, depending on the amount of the employees' personal accounts and accumulated earnings. The Company recognized pension costs of $2,352and $2,383 as of 2021 and 2020, respectively, based on the above pension plan.

(XIII) Provision

pension plan. Provision
Balance as of January 1 Provision added this period Balance at December 31	$	2021 21,923 3,262 25,185	$	2020 17,640 4,283 21,923
	$		$

The nature of the Group's provision for liabilities is described as follows.

1. The Group entered into a lease agreement with the Taiwan International Ports Corporation, Ltd. in November 2016 for a period ending on April 30, 2022. According to the agreement, the Corporate Group should restore the leased terminal base to its original condition by demotion at the end of the lease period. Therefore, the provision for liabilities based on the expected cost of dismantling, removing or restoring the site was $9,886 as of December 31, 2021 and December 31, 2020.

2. The Corporate Group’s solar power generation sites are built on the roof. According to the

~44~

contract, the Corporate Group should restore the leased site to its original condition at the end of the lease term. Therefore, the provision for liabilities recognized for the solar power site based on the costs expected to be incurred for dismantling, removing or restoring the site were $15,299 and $12,037 as of December 31, 2021 and December 31, 2020, respectively.

(XIV) Share capital

As of December 31, 2021, the Corporate Group's authorized capital was NT$2,000,000 and the paid-in capital was NT$690,344, divided into 69,034 thousand shares with a par value of NT$10 per share.

The reconciliation of the number of shares of the Company's common stock in circulation at the beginning of the period to the end of the period is as follows:

2021 2020

Number at the beginning of the period 69,034 thousand shares 69,034 thousand shares (i.e. Number at the end of the period)

- (XV) Additional paid in capital

In accordance with the Company Act, any capital surplus arising from paid-in capital in excess of the par value on issuance of common stocks can be used to cover accumulated losses or to distribute new stocks or cash to shareholders in proportion to their shareholdings, provided that the Company has no accumulated losses. Further, the Securities and Exchange Act requires that the amount of capital surplus to be capitalized, as above, should not exceed 10% of paid-in capital each year. Capital surpluses should not be used to cover accumulated deficit unless the legal reserve is insufficient.

(XVI) Retained earnings

1. In accordance with the Company Act, the capital surplus from premium from issuance of shares in excess of par value and the capital surplus from donations may be used to cover losses, and new shares or cash may be issued in proportion to the shareholders' original shareholding percentages when the Company has no accumulated losses. In addition, in accordance with the Securities and Exchange Act, the above capital surplus can be capitalized to the extent that the total amount does not exceed 10% of the paid-in capital each year. Capital surpluses should not be used to cover accumulated deficit unless the legal reserve is insufficient.

2. In accordance with the Company Act, the legal reserve may not be used except to cover losses or to issue new shares or cash in proportion to the shareholders' original shareholding percentages, but it is limited to the portion of the legal reserve over 25% of the paid-in capital.

3. On August 18, 2021 and June 16, 2020, the Shareholders’ Meeting of the Company approved the distribution of earnings for 2020 and 2019 respectively. The resolution is as follows:

~45~

Legal reserve allocated Allocated special reserve Cash dividends paid Total	2020 Amount Dividends per share (NTD) $ 15,972 13,064 138,069 $ 2.00 $167,105	2019 Amount Dividends per share (NTD) $ 13,490 - 113,907 $ 1.65 $127,397	2019 Amount Dividends per share (NTD) $ 13,490 - 113,907 $ 1.65 $127,397
			share (NTD) $ 1.65

Please refer to the Market Observation Post System for information on the proposed distribution of earnings approved by the Board of Directors and resolved by the shareholders.

1. On March 24, 2022, the Board of Directors proposed and approved the distribution of earnings for 2021. The resolution is as follows:

Legal reserve allocated Allocated special reserve Cash dividends paid Total	2021 Amount Dividends per share (NTD) $ 6,984 5,714 55,227 $ 0.80 $ 67,925

1. In accordance with the regulations, the Company shall set aside special reserve from the debit balance on other equity items at the balance sheet date before distributing earnings. When debit balance on other equity items is reversed subsequently, the reversed amount could be included in the distributable earnings.

(XVII) Operating income

Operating lease Rental incomes Revenue from Customer Contract (External revenue) Tank operation revenue Electricity sales revenue Total	$	2021 292,527 79,460 94,122 466,109	$	2020 375,100 79,795 85,942 540,837
	$		$

1. The revenue from customer contracts of the Group is recognized gradually over time.

2. The Group's rental revenue and tank operation income are presented together with the oil

~46~

and chemical tank rental business in Note 14, (3) Segment Information.

(XVIII) Other gains or losses

Disposal of property, plant and equipment Gain on lease modification Net foreign currency exchange loss Gain on financial assets at fair value through profit or loss Others	$ (	2021 95 31 1,855) 2,533 - 804	$ ( (	2020 359 474 3,155) 2,765 412) 31
	$		$

(XIX) Financial costs

Interest expenses Bank borrowings Less: The amount of asset capital that meets the requirements Interest expenses on lease liabilities (XX) Expenses by nature Employee benefits expense depreciation expense Amortization expenses Terminal administrative expenses Miscellaneous purchases Low-value asset rents Expenses for variable lease payments Other expenses Operating costs and operating expenses	$ (	$ (	2021 7,829 6,678) 1,151 937 2,088 2021 75,663 178,424 1,328 29,409 11,711 359 6,941 73,799 377,634	$ (	$ (	2020 4,939 3,569) 1,370 1,928 3,298 2020 81,353 157,516 1,130 28,756 12,046 329 5,535 72,635 359,300
		$			$
		$			$
		$			$

~47~

(XXI) Employee benefits expense

Salary expenses Labor and health insurance expenses Pension costs Directors' remuneration Other employee expenses	$	2021 61,273 5,558 2,559 2,233 4,040 75,663	$	2020 64,773 4,902 2,688 4,465 4,525 81,353
	$		$

1. In accordance with the Company's Articles of Incorporation, if the Company has a surplus in earnings after deducting the accumulated losses based on the profitability of the current year, the Company shall appropriate no less than 3% as employees' profit sharing remuneration and no more than 5% as directors' and supervisors' profit sharing remuneration.

2. The estimated profit sharing amount for employees for the year ended December 31, 2021 and 2020 were $2,894 and $5,987, respectively; the estimated profit sharing amount for directors' and supervisors' were$2,894 and $5,987, respectively. The aforementioned amounts were recorded as salary expenses.

For the years ended December 31, 2021 and 2020, the remuneration to employees and directors and supervisors were estimated at 3% based on the profitability of the year then ended.

1. The profit sharing for employees and the profit sharing for directors and supervisors resolved by the Board of Directors for 2020 were both $5,987 and were consistent with the amounts recognized in the 2020 financial statements.

Information about employees’ profit sharing and directors’ and supervisors’ profit sharing of the Company as resolved by the Board of Directors can be found on the Market Observation Post System.

(XXII) Income tax

1. Income tax expense

2. (1) Components of income tax expense:

Current tax: Income taxes arising from incomes for the current period Amount of income tax overestimated for prior years Tax on undistributed surplus earning Total current tax Deferred income tax:	$ (	2021 15,779 25) 79 15,833	$ (	2020 36,592 12,206) 14
				24,400

~48~

Origination and Reversal of Temporary Differences Deferred tax: Income tax expense	2,228 2,228 $ 18,061	671
		671
		$ 25,071

(2) Amount of Income tax related to other comprehensive Income

Translation differences of foreign operations Remeasurements of defined benefit obligation	$	2021 1,093 396 1,489	$	2020 2,021 208
	$		$	2,229

1. Reconciliation between income tax expense and accounting profit

Income tax expense at the statutory rate Effect from receiving dividend from investee accounted for using the equity method and income Effect from tax-exempt income under the tax law Effect from exclusion of expenses according to the tax law Tax on undistributed surplus earning Amount of income tax overestimated for prior years Others Income tax expense	$ ( (	2021 18,092 - 216 521 79 25) 822) 18,061	$ ( (	2020 37,309 2,084 2,614) 484 14 12,206) - 25,071
	$		$

~49~

1. Amounts of deferred tax assets derived from temporary differences are as follows:

Temporary difference: - Deferred income tax assets Bonus for employees not taking leave Pension liability Unrealized exchange gains or loss Cumulative translation adjustment - Deferred income tax liabilities Gain on investment Temporary difference: - Deferred income tax assets Bonus for employees not taking leave Pension liability Unrealized exchange gains or loss Cumulative translation adjustment - Deferred income tax liabilities Gain on investment	$	January 1 410 1,572 522 2,748 5,252 2,905) January 1 410 1,598 - 727 2,735 1,946)	2021 Recognized in profit or loss Recognized in other comprehensive net profit December 31 $ - $ - $ 410 ( 654) 396 1,314 ( 427) - 95 - 1,093 3,841 ($ 1,081) $ 1,489 $ 5,660 ($ 1,147) $- ($ 4,052) 2020 Recognized in profit or loss Recognized in other comprehensive net profit December 31 $ - $ - $ 410 ( 234) 208 1,572 522 - 522 - 2,021 2,748 $ 288 $ 2,229 $ 5,252 ($ 959) $- ($ 2,905)	December 31
	$
	($
	$
	$
	($

~50~

1. The effective periods of unused tax losses and the related amounts of unrecognized deferred income tax assets of the Corporate Group's subsidiaries are as follows:

December 31, 2021

December 31, 2021	December 31, 2021	21
Year 2013 $ December 31, 2020		$	Reported 3,916 Reported 3,916		Amount not yet		Unrecognized Deferred Tax Income tax asset component $ 3,916 Unrecognized Deferred Tax Income tax asset component $ 3,916	Last Year of
					$		$	Deduction 2023 Last Year of
2013	Year	$
					$	deducted 3,916	$		Deduction 2023

1. Except for the year ended December 31, 2019, the Corporate Group's income tax has been approved by the tax authorities for the year ended December 31, 2020. The income tax of the subsidiaries, POCS Power Co., Ltd. and He Zhen Feng Co., Ltd. was approved by the tax authorities until 2020.

(XXIII) Earnings per share

Basic earnings per share Net profits for the period attributable to shareholders of parent company Diluted earnings per share Assumed conversion of all dilutive potential ordinary shares Employee compensation Net profits for the period attributable to shareholders of common stock of parent company plus the effect of potential common stock	After-tax amount $ 71,428 - $ 71,428		2021 Weighted average	2021 Weighted average	2021 Weighted average	Earnings per share (NTD) $ 1.03 $ 1.03
			Number of shares
				in circulation (thousands of shares) 69,034 162
					69,196

~51~

			2020
			Weighted average		Earnings per share
			Number of shares in
	After-tax amount		circulation (thousands of shares)		(NTD)
Basic earnings per share
Net profits for the period
attributable to shareholders	$159,724		69,034		$ 2.31
of parent company
Diluted earnings per share
Assumed conversion of all
dilutive potential ordinary
shares
Employee compensation	-		314
Net profits for the period
attributable to shareholders
of common stock of parent
company plus the effect of
potential common stock	$159,724		69,348		$ 2.30
(XXIV) Supplemental cash flow information
1. Investing activities that are only partially			paid in cash:
			2021		2020
Purchase of property, plant and		$	153,211	$	331,294
equipment
Add: Equipment payable at the beginning of the period			42,262		19,793
Add: Equipment payable at the end of the period		(	34,582)	(	42,262)
Less: Provision for liabilities - non-
current added during	the period	(	3,262)	(	4,283)
Cash paid during the	period	$	157,629	$	304,542

~52~

(XXV) Changes in liabilities arising from financing activities

January 1 Changes in cash flows from financing activities Other non-cash transactions December 31	Lease liabilities $ 77,848 ( 59,830) 21,307 $ 39,325	2021 Short-term borrowings and bills payable Long-term borrowings (including portions due within one year or one operating cycle) $ 144,300 $ 227,214 ( 2,200) 137,029 - - $ 142,100 $ 364,243	2021 Short-term borrowings and bills payable Long-term borrowings (including portions due within one year or one operating cycle) $ 144,300 $ 227,214 ( 2,200) 137,029 - - $ 142,100 $ 364,243	2021 Short-term borrowings and bills payable Long-term borrowings (including portions due within one year or one operating cycle) $ 144,300 $ 227,214 ( 2,200) 137,029 - - $ 142,100 $ 364,243	2021 Short-term borrowings and bills payable Long-term borrowings (including portions due within one year or one operating cycle) $ 144,300 $ 227,214 ( 2,200) 137,029 - - $ 142,100 $ 364,243	2021 Short-term borrowings and bills payable Long-term borrowings (including portions due within one year or one operating cycle) $ 144,300 $ 227,214 ( 2,200) 137,029 - - $ 142,100 $ 364,243	Total liabilities	Total liabilities
							from financing
					due within one year or one operating cycle) $ 227,214 137,029 - $ 364,243
			bills payable 144,300 2,200) - 142,100				$	activities 449,362 74,999 21,307
		$					$	545,668

January 1 Changes in cash flows from financing activities Other non-cash transactions December 31	Lease liabilities $ 126,946 ( 59,058) 9,960 $ 77,848	Lease liabilities $ 126,946 ( 59,058) 9,960 $ 77,848	2020 Short-term borrowings and bills payable Long-term borrowings (including portions due within one year or one operating cycle) $ 94,600 $ 91,217 49,700 135,997 - - $ 144,300 $ 227,214	2020 Short-term borrowings and bills payable Long-term borrowings (including portions due within one year or one operating cycle) $ 94,600 $ 91,217 49,700 135,997 - - $ 144,300 $ 227,214	2020 Short-term borrowings and bills payable Long-term borrowings (including portions due within one year or one operating cycle) $ 94,600 $ 91,217 49,700 135,997 - - $ 144,300 $ 227,214	2020 Short-term borrowings and bills payable Long-term borrowings (including portions due within one year or one operating cycle) $ 94,600 $ 91,217 49,700 135,997 - - $ 144,300 $ 227,214	2020 Short-term borrowings and bills payable Long-term borrowings (including portions due within one year or one operating cycle) $ 94,600 $ 91,217 49,700 135,997 - - $ 144,300 $ 227,214	Total liabilities	Total liabilities
								from financing
						due within one year or one operating cycle) $ 91,217 135,997 - $ 227,214
			$	bills payable 94,600 49,700 - 144,300				$	activities 312,763 126,639 9,960
			$					$	449,362

VII. Related-Party Transactions

(I) Parent company and ultimate controlling party

The Company's shares are held by the public and there is no ultimate parent or ultimate controlling party.

(II) Compensation of key management personnel

Short-term employee benefits Post-employment benefits Total	2021 $ 22,197 1,099 $ 23,296	2020 $ 25,582 1,095 $ 26,677

~53~

VIII. Pledged assets

Asset type Refundable deposits (time deposits) Refundable deposits (time deposits) Refundable deposits (time deposits) Financial assets measured at amortized cost Non-current assets Other Equipment	December 31, 2021 December 31, 2020 Purpose $ 2,850 $ 2,400 Customs duty 36,008 36,118 Lease deposits 18,316 13,771 Performance guarantee deposits 2,301 - Long-term borrowings 313,884 130,805 Long-term borrowings $ 373,359 $ 183,094
	$ 373,359

IX. Significant contingent liabilities and unrecognized contract commitments

(I) Contingencies

Not applicable.

(II) Capital expenditures contracted for but not yet incurred

Property, Plant and Equipment	December 31, 2021 $ 191,297	December 31, 2020
		$ 110,739

X. Losses due to major disasters

Not applicable.

XI. Significant events after the balance sheet date

On March 24, 2022, the Board of Directors passed the distribution of FY2021 earnings. Please refer to Note 6(16) for details.

XII. Others

(I)Capital management

The objective of the Corporate Group’s capital management is to ensure that the Corporate Group can continue as a going concern, that an optimal capital structure is maintained to lower the cost of capital and that returns are provided to shareholders. In order to maintain or adjust the capital structure, the Corporate Group may adjust the amount of dividends paid to shareholders or issue new shares. Should any borrowings occur, the Corporate Group will monitor its capital on the basis of the debt-to-equity ratio.

The Corporate Group monitors capital through the debt-to-equity ratio This ratio is calculated as total loans less cash and cash equivalents then divided by total equity. The Corporate Group’s strategic maintenance in 2021 to pin the debt-to-equity ratio in between 0% and 30% remains unchanged from that in 2020. The calculation of the Corporate Group's debt-to-equity ratio as of December 31, 2021 and December 31, 2020 was as follows

~54~

Total loans Less: Cash and cash equivalents Net debt Total equity Debt-to-equity ratio	December 31, 2021 $ 506,343 ( 135,111) $ 371,232 $ 962,007 39%	December 31, 2020
		$ 371,514 ( 142,716) $ 228,798 $ 1,037,949 22%

(II)Financial instruments

1. Categories of financial instruments

Financial asset Financial assets at fair value through profit and loss Financial assets mandatorily measured at fair value through profit or loss $ Financial assets at fair value through other comprehensive income Investments in designated equity instrument $ Financial assets measured at amortized cost Cash and cash equivalents $ Financial assets measured at amortized cost - current Note receivable Trade receivable Other receivables Financial assets measured at amortized cost – non-current Refundable deposits $ Financial liability Financial assets measured at amortized cost Short-term borrowings $ Short-term bills payable Notes payable Other payables Long-term borrowings (including portions due within one year or one operating cycle) Guarantee deposits received $ Lease liabilities $	$	December 31, 2021 83,109 36,214 135,111 26,026 717 42,387 - 2,301 64,026 270,568 December 31, 2021 103,600 38,500 6,881 60,518 364,243 6,450 580,192 39,325	$	December 31, 2020
				67,074 42,980 142,716 16,489 244 45,164 1,960 - 58,896 265,469 December 31, 2020
	$		$
			$
	$		$
	$		$
				98,800 45,500 6,881 76,996 227,214 6,450 461,841 77,848
	$		$
	$		$

~55~

1. Risk management policies

The Group's daily operations are subject to a number of financial risks, including market risk (including exchange rate risk, interest rate risk and price risk), credit risk and liquidity risk. The Group's overall risk management program focuses on the unpredictability of financial markets and seeks to minimize potential adverse effects on the Group's financial position and performance.

The Group's significant financial risk management is controlled with review by the Board of Directors in accordance with relevant regulations and internal control systems. The financial risk management plan has been established to identify and analyze the financial risks faced by the Company and assess their impact, and to implement relevant policies to avoid financial risks, and to regularly review the financial risk policy to reflect changes in market conditions and the Group's operations.

1. Significant financial risks and degrees of financial risks

2. (1) Market risk

Exchange rate risk

• A. The Group engages in business involving foreign currency transactions and is therefore subject to exchange rate fluctuations and exchange rate risk arising from different currencies, mainly USD. The related exchange rate risk arises from future business transactions and recognized assets. Exchange rate risk arises when future business transactions and recognized assets are denominated in the functional currency of the entity

• B. The Group has no significant foreign currency financial liabilities. An analysis of foreign currency assets subject to significant exchange rate fluctuations and foreign currency market risk due to significant exchange rate fluctuations is as follows.

Financial asset Monetary items USD: NTD Non-monetary items USD: NTD	Foreign currency (Thousands of NTD) $ 587 $ 8,897	December 31, 2021 Sensitivity Analysis Exchange rate Carrying amount (NTD) Change range Impact on profit or loss Impact on comprehens ive income 27.63 $16,219 1% $ 162 $ - 27.63 $245,822 1% $ - $ -	December 31, 2021 Sensitivity Analysis Exchange rate Carrying amount (NTD) Change range Impact on profit or loss Impact on comprehens ive income 27.63 $16,219 1% $ 162 $ - 27.63 $245,822 1% $ - $ -	December 31, 2021 Sensitivity Analysis Exchange rate Carrying amount (NTD) Change range Impact on profit or loss Impact on comprehens ive income 27.63 $16,219 1% $ 162 $ - 27.63 $245,822 1% $ - $ -
			Impact on
			profit or loss $ 162 $ -
				ive income
				$ - $ -

~56~

Financial asset Non-monetary items USD: NTD	Foreign currency (Thousands of NTD) $ 8,814	Exchange rate 28.43 $	December 31, 2020 Sensitivity Analysis Carrying amount (NTD) Change range Impact on profit or loss Impact on comprehens ive income 250,586 1% $ - $ -	December 31, 2020 Sensitivity Analysis Carrying amount (NTD) Change range Impact on profit or loss Impact on comprehens ive income 250,586 1% $ - $ -	December 31, 2020 Sensitivity Analysis Carrying amount (NTD) Change range Impact on profit or loss Impact on comprehens ive income 250,586 1% $ - $ -
				Impact on
				profit or loss $ -
	$				ive income $ -

• C. The total amount of exchange losses (both realized and unrealized) recognized in 2021 and 2020 was $1,855 and $3,155, respectively, due to the significant impact of exchange rate fluctuations on the Corporate Group’s monetary items.

• (2) Price risk

• A. The Group's equity instruments exposed to price risk are financial assets held at fair value through profit or loss and financial assets at fair value through other comprehensive income. To manage the price risk of equity securities, the Group diversifies its investment portfolio in a manner that is based on the limits set by the Group.

• B. The Corporate Group invests mainly in equity instruments and beneficiary certificates that are not listed on the TWSE or TPEx or foreign markets. The prices of these equity instruments are affected by the uncertainty of the future value of the underlying investments.

• (3) Cash flow and fair value interest rate risk

• A. The Group’s interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the Group to cash flow interest rate risk which is partially offset by cash and cash equivalents held at variable rates. For 2021 and 2020, the Corporate Group's borrowings based on floating interest rates were denominated in NTD.

• B. The Group simulates various scenarios and analyzes interest rate risk, including consideration of refinancing, renewal of existing positions, other available financing and hedging, in order to calculate the impact of changes in specific interest rates on profit or loss. For each simulated scenario, the same interest rate change is applied to all currencies. These simulated scenarios are used only for significant interest-bearing liabilities.

• C. As of December 31, 2021 and December 31, 2020, if the interest rate of all borrowings increased by 1% with all other factors held constant, net profits after tax would have decreased by $3,511 and $2,229 for 2021 and 2020, primarily due to the floating rate of borrowings that increases interest expense.

• (4) Credit risk

• A. The Corporate Group's credit risk is the risk of financial loss arising from the failure of customers or counterparties to financial instruments to meet their contractual obligations, mainly from the failure of counterparties to settle accounts receivable on payment terms.

• B. For receivables arising from operating activities, the Group has established

~57~

relevant credit risk management mechanisms and regularly evaluates the financial position, credit limits and other factors of the related debtors, and the current creditworthiness of the receivables is good and there was no significant credit risk according to the assessment. Cash, cash equivalents and financial assets measured at amortized cost that have been assessed to have no significant risk.

• C. The Group assumes that a default is deemed to have occurred when payments are more than 60 days overdue in accordance with the contractual payment terms.

• D. The Group categorizes accounts receivable from customers according to the characteristics of revenue types and estimates expected credit losses based on the loss ratio method on a simplified basis.

• E. The Corporate Group has estimated the allowance for losses on accounts receivable by incorporating forward-looking adjustments to the loss rate established based on historical and current information for a specific period, as the Group's customers are in good credit standing and the overdue accounts receivable and the overdue loss rate were not material as of December 31, 2021 and December 31, 2020.

• F. There was no sign of impairment of the Group's notes receivable.

• G. The Corporate Group's allowance for losses on accounts receivable on a simplified basis has not changed for FY2021 and FY2020, and the allowance for losses on accounts receivable was $0 as of December 31, 2021 and 2020.

• (5) Liquidity risk

• A. The Group's finance department prepares future cash flow forecasts to monitor future funding requirements and to ensure that sufficient funds are available for disbursement, and maintains sufficient borrowing facilities to adjust for future funding shortfalls.

• B. The following table presents the Group's non-derivative financial liabilities, grouped by the relevant maturity date, which are analyzed based on the remaining period from the balance sheet date to the contractual maturity date. The contractual cash flow amounts disclosed in the Table below are undiscounted amounts.

Non-derivative financial

Non-derivative financial
liabilities: December 31, 2021 Short-term borrowings Short-term bills payable Notes payable Other payables Lease liabilities Guarantee deposits received Long-term borrowings (including portions due within one year or one operating cycle) Total		Less than 1 year $ 103,839 38,545 6,881 60,518 29,137 - 74,810		Less	than 1 to 2	More than 2 years $ - - - - 9,062 6,450 234,706 $ 250,218	More than 2
		$		years $ - - - - 8,991 - 73,045 $ 82,036				years - - - - 9,062 6,450 234,706 250,218
		$	313,730			$

~58~

Non-derivative financial

Non-derivative financial
liabilities: December 31, 2020 Short-term borrowings Short-term bills payable Notes payable Other payables Lease liabilities Guarantee deposits received Long-term borrowings (including portions due within one year or one operating cycle) Total		Less than 1 year $ 98,903 45,566 6,881 76,996 58,941 - 58,560		Less	than 1 to 2	More than 2 years $ - - - - 3,968 6,450 124,822 $ 135,240	More than 2
		$		years $ - - - - 21,294 - 52,697 $ 73,991				years - - - - 3,968 6,450 124,822 135,240
		$	345,847			$

(III) Fair value information

1. 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 values of the Group's investments in TWSE and TPEx listed stocks belong to this.

2. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

3. Level 3: Unobservable inputs for the asset or liability. The Group's investments in unlisted over-the-counter stocks and beneficiary certificates are classified as such.

4. For financial and non-financial instruments measured at fair value, the Group classifies them based on the basis of the nature, characteristics and risks of the assets and fair value level, and the related information is as follows.

December 31, 2021 Assets Recurring fair value Financial assets at fair value through profit and loss Investment in private equity $ Financial assets at fair value through other comprehensive income	Level 1 - $	Level 2 - $	Level 3 Total 83,109 $ 83,109

~59~

Equity security Total December 31, 2020 Assets Recurring fair value Financial assets at fair value through profit and loss Investment in private equity Financial assets at fair value through other comprehensive income Equity security Total		- - Level 1 - - -		- - Level 2 - - -	36,214 $119,323 Level 3 $67,074 42,980 $110,054	36,214 $119,323 Total $ 67,074 42,980 $110,054
	$		$
	$		$
	$		$

The following table shows the changes in Level 3 for 2021 and 2020.

	2021		2020
	Non-derivative equity	security Non-derivative equity		security
January 1	$	110,054	$	80,439
Gain recognized in profit or loss		2,533		2,765
Profit (loss) recognized in
other comprehensive	(	3,346)		2,634
income
Realized gains or losses
on valuation reclassified to unappropriated		2,003		-
earnings
Purchase in the period		28,141		31,877
Refund of share price due
to capital deduction	(	20,062)	(	7,661)
during the period
December 31	$	119,323	$	110,054

1. In 2021 and 2020 there were no transfers in or out of Level 3.

2. The Group's valuation process for fair value classification in Level 3 is conducted by the finance and accounting department, which is responsible for conducting independent fair value verification of financial instruments, using independent sources of information to make the valuation results approximate market conditions, confirming that the sources of information are independent, reliable, consistent with other resources and representative of executable prices, and regularly updating the input values and information required by the valuation models and any other necessary fair value adjustments to ensure that the

~60~

valuation results are reasonable. performing back-testing, updating input values used to be the valuation model and making any other necessary adjustments to the fair value.

1. Quantitative information regarding the significant unobservable input values of the valuation models used for Level 3 fair value measurements and sensitivity analysis of changes in significant unobservable input values are described below.

December 31, 2021 Fair value Valuation technique Significant unobservable input value Interval (Weighted average) Non-derivative equity security: Non TWSE or TPEx listed stock $ 5,324 Discounted benefit flow method Discount for lack of marketability 20% Adjustment to discount for lack of controlling interests 30% Venture capital company stock 30,890 Net asset value method Net asset value - Investment in private equity 830,109 Net asset value method Net asset value - December 31, 2020 Fair value Valuation technique Significant unobservable input value Interval (Weighted average) Non-derivative equity security: Non TWSE or TPEx listed stock $ 15,010 Discounted benefit flow method Discount for lack of marketability 20% Adjustment to discount for lack of controlling interests 30% Venture capital company stock 27,970 Net asset value method Net asset value - Investment in private equity 67,074 Net asset value method Net asset value -	Interval (Weighted	Relationship between input value
		and fair value The higher the discount for lack of marketability and the higher the discount for lack of controlling interests, the lower the fair value The higher the net asset value, the higher the fair value The higher the net asset value, the higher the fair value Relationship between input value
		and fair value The higher the discount for lack of marketability and the higher the discount for lack of controlling interests, the lower the fair value The higher the net asset value, the higher the fair value The higher the net asset value, the higher the fair value

1. The Group has carefully evaluated the valuation models and valuation parameters selected and therefore the fair value measurement is reasonable. However, the use of different valuation models or valuation parameters may result in different valuation results. For financial assets and financial liabilities classified as Level 3, the effect on the profit or loss for the period or other comprehensive income if the valuation parameters are changed is as follows.

~61~

Input value Financial asset Equity instruments The discount for lack of marketability and the discount for lack of controlling interests Equity instruments Net asset value Investment in private equityNet asset value Total Input value Financial asset Equity instruments The discount for lack of marketability and the discount for lack of controlling interests Equity instruments Net asset value Investment in private equityNet asset value Total	Change ±1% ±1% ±1% Change	$	December 31, 2021 Recognized in profit or loss Recognized in other comprehensive Income Favorable change Unfavorable change Favorable change Unfavorable change - $ - $ 53 ($ 53) - - 309 ( 309) 831 ( 831) - - 831 ($ 831) $ 362 ($ 362) December 31, 2020 Recognized in profit or loss Recognized in other comprehensive Income Favorable change Unfavorable change Favorable change Unfavorable change - $ - $ 150 ($ 150) - - 280 ( 280) 671 ( 671) - - 671 ($ 671) $ 430 ($ 430)	December 31, 2021 Recognized in profit or loss Recognized in other comprehensive Income Favorable change Unfavorable change Favorable change Unfavorable change - $ - $ 53 ($ 53) - - 309 ( 309) 831 ( 831) - - 831 ($ 831) $ 362 ($ 362) December 31, 2020 Recognized in profit or loss Recognized in other comprehensive Income Favorable change Unfavorable change Favorable change Unfavorable change - $ - $ 150 ($ 150) - - 280 ( 280) 671 ( 671) - - 671 ($ 671) $ 430 ($ 430)	December 31, 2021 Recognized in profit or loss Recognized in other comprehensive Income Favorable change Unfavorable change Favorable change Unfavorable change - $ - $ 53 ($ 53) - - 309 ( 309) 831 ( 831) - - 831 ($ 831) $ 362 ($ 362) December 31, 2020 Recognized in profit or loss Recognized in other comprehensive Income Favorable change Unfavorable change Favorable change Unfavorable change - $ - $ 150 ($ 150) - - 280 ( 280) 671 ( 671) - - 671 ($ 671) $ 430 ($ 430)	December 31, 2021 Recognized in profit or loss Recognized in other comprehensive Income Favorable change Unfavorable change Favorable change Unfavorable change - $ - $ 53 ($ 53) - - 309 ( 309) 831 ( 831) - - 831 ($ 831) $ 362 ($ 362) December 31, 2020 Recognized in profit or loss Recognized in other comprehensive Income Favorable change Unfavorable change Favorable change Unfavorable change - $ - $ 150 ($ 150) - - 280 ( 280) 671 ( 671) - - 671 ($ 671) $ 430 ($ 430)	December 31, 2021 Recognized in profit or loss Recognized in other comprehensive Income Favorable change Unfavorable change Favorable change Unfavorable change - $ - $ 53 ($ 53) - - 309 ( 309) 831 ( 831) - - 831 ($ 831) $ 362 ($ 362) December 31, 2020 Recognized in profit or loss Recognized in other comprehensive Income Favorable change Unfavorable change Favorable change Unfavorable change - $ - $ 150 ($ 150) - - 280 ( 280) 671 ( 671) - - 671 ($ 671) $ 430 ($ 430)	December 31, 2021 Recognized in profit or loss Recognized in other comprehensive Income Favorable change Unfavorable change Favorable change Unfavorable change - $ - $ 53 ($ 53) - - 309 ( 309) 831 ( 831) - - 831 ($ 831) $ 362 ($ 362) December 31, 2020 Recognized in profit or loss Recognized in other comprehensive Income Favorable change Unfavorable change Favorable change Unfavorable change - $ - $ 150 ($ 150) - - 280 ( 280) 671 ( 671) - - 671 ($ 671) $ 430 ($ 430)	December 31, 2021 Recognized in profit or loss Recognized in other comprehensive Income Favorable change Unfavorable change Favorable change Unfavorable change - $ - $ 53 ($ 53) - - 309 ( 309) 831 ( 831) - - 831 ($ 831) $ 362 ($ 362) December 31, 2020 Recognized in profit or loss Recognized in other comprehensive Income Favorable change Unfavorable change Favorable change Unfavorable change - $ - $ 150 ($ 150) - - 280 ( 280) 671 ( 671) - - 671 ($ 671) $ 430 ($ 430)
		$
		$ $
						$
			Favorable change - - 671 671
					change - - 671) 671)				change 150) 280) - 430)
	±1% ±1% ±1%
						$		($
				($

XIII. Additional disclosures

(I)Significant transactions information

1. Loans to others: None.

2. Endorsements and guarantees for others: Table 1.

3. Marketable securities held at the end of the period (excluding investments in subsidiaries, affiliates and joint ventures): Please refer to Table 2 for details.

4. Marketable securities acquired and disposed amounting to at least NT$300 million or 20% of the paid-in capital. None.

5. Acquisition of individual real estate amounting to at least NT$300 million or 20% of the

~62~

paid-in capital: None

1. Disposal of individual real estate amounting to at least NT$300 million or 20% of the paidin capital: None

2. Purchase from or sale to related parties amounting to at least NT$100 million or 20% of the paid-in capital: None.

3. Receivables from related parties amounting to at least NT$100 million or 20% of the paidin capital: None.

4. Engagements in derivative financial instruments transactions: None.

5. Business relationships and significant intercompany transactions and amounts between the parent company and its subsidiaries and between subsidiaries: None.

(II)Information on investees

Name, locations, and other related information of investees. Please refer to Table 3.

(III) Investments in Mainland China

Not applicable.

(IV)Information on main investors

For information on major shareholders: Please refer to Table 4.

XIV. Operating Segments Information

(I)General information

The Group’s management has identified the reportable segments based on the reported information used by the chairperson in making decisions.

The Group has two reportable segments, the oil and chemical tank rental business and the solar power business, which provide oil and chemical tank rental and electricity sales, respectively, as the main sources of revenue.

(II)Measurement of segment information

The Group's operating segments adopt consistent accounting policies. The Group's operating decision makers evaluate the performance of each operating segment based on operating revenue and net profit after tax.

(III) Segment information

The Group's segment operating profit reported to the chief operating decision makers is measured in a manner consistent with the revenue and expenses in the income statement. The Group does not provide the total assets and liabilities to the operating decision maker for operating decisions. The reportable segment information provided to the chief operating decision maker for FY2021 and FY2020 is as follows:

~63~

2021

2021
Segment revenues Segment profits or losses (Note) Segment profits or losses include: Depreciation and amortization Interest income Financial costs Income tax expense	Oil and chemical tank rental business Solar power generation business Total $ 371,987 $ 94,122 $ 466,109 45,937 25,475 71,412 135,678 44,074 179,752 252 9 261 937 1,151 2,088 12,315 5,746 18,061
	$

2020

2020
Segment revenues Segment profits or losses (Note) Segment profits or losses include: Depreciation and amortization Interest income Financial costs Income tax expense	Oil and chemical tank rental business Solar power generation business $ 454,895 $ 85,942 $ 135,276 24,442 120,599 38,047 341 48 1,928 1,370 20,090 4,981	Total 540,837 159,718 158,646 389 3,298 25,071
	$

Note: Other income and expenses generated internally that were eliminated.

(IV)Reconciliation of departmental profit and loss information

The Group's income and net profit or loss after tax of the operating departments reported to the chief operating decision maker are measured in a manner consistent with the income and net loss after tax in the consolidated income statement, and therefore no reconciliation table information is applicable.

(V)Product and service information

Revenue is derived primarily from the rental of oil and chemical tanks, and the balance of revenue is broken down as follows.

~64~

Oil and chemical tank rental business Tank operation revenue Solar Power Industry Total	$	2021 292,527 79,460 94,122 466,109	$	2020 375,100 79,795 85,942 540,837
	$		$

(VI)Information by Region

Taiwan $ Southeast Asia Total $	Taiwan $ Southeast Asia Total $	Revenue 455,011 11,098	2021 Non-current assets $ 1,010,570 220,902 $ 1,231,472	2021 Non-current assets $ 1,010,570 220,902 $ 1,231,472	2021 Non-current assets $ 1,010,570 220,902 $ 1,231,472	$	Revenue 526,586 14,251	2020 Non-current assets $ 1,007,628 233,836 $ 1,241,464	2020 Non-current assets $ 1,007,628 233,836 $ 1,241,464	2020 Non-current assets $ 1,007,628 233,836 $ 1,241,464
					$ 1,010,570 220,902 $ 1,231,472					$ 1,007,628 233,836 $ 1,241,464
	$	466,109				$	540,837

(VII) Important Customer Information

The breakdown of the Company’s customers whose revenues accounted for 10% or more of the operating revenues on the consolidated statements of income for the years ended December 31, 2021 and 2020 are as follows:

2021 Revenue Department Company G $ 125,058 Oil and chemical tank rental business $ Company H 79,892 Electricity Retailing Enterprise Company I 43,281 Oil and chemical tank rental business	2020 Revenue Department 106,225 Oil and chemical tank rental business 70,715 Electricity Retailing Enterprise 64,752 Oil and chemical tank rental business

~65~