POCS — Interim / Quarterly Report 2021

Nov 9, 2021

Prime Oil Chemical Service Corporation and subsidiaries

Consolidated Financial Statements and

Independent Auditor’s Review Report September 30, 2021 and 2020 (Stock Code: 2904)

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

~1~

Independent Auditor's Review Report

(2021) PWCR21002120 To the Board of Directors and Shareholders of Prime Oil Chemical Service Corporation.:

Introduction

We have reviewed the accompanying consolidated balance sheets of Prime Oil Chemical Service Corporation and its subsidiaries (the “POCS Group”) as of September 30, 2021 and 2020 and the related consolidated comprehensive income statements for the three months ended September 30, 2021 and 2020 and for the nine months ended September 30, 2021 and 2020, consolidated statements of changes in equity and consolidated cash flow statements for the nine months then ended, and notes to the consolidated financial statements (including a summary of significant accounting policies). Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulation Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Statement 34 “Interim Financial Reporting” endorsed by the Financial Supervisory Commission. Our responsibility is to express a conclusion on the consolidated financial statements based on our review.

Scope of Review

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

Basis of qualified conclusion

As described in Note 4(3) 2. to the consolidated financial statements, the financial statements of certain non-significant subsidiaries included in the above consolidated financial statements for the same period have not been reviewed by us. As of September 30, 2021 and 2020, their total assets amounted to NT$395,441 thousand and NT$354,543 thousand, respectively, accounting for 24% and 22% of the consolidated total assets; their total liabilities

~2~

amounted to NT$98,601 thousand and NT$111,079 thousand, respectively, accounting for 15% and 18% of the consolidated total liabilities. Their total consolidated income from July 1 to September 30, 2021 and 2020 and January 1 to September 30, 2021 and 2020 was NT$1,302 thousand, NT$2,529 thousand, NT$3,951 thousand and NT$6,070 thousand, respectively, which accounted for (120)% , 7%, 7% and 5% of the consolidated comprehensive income, respectively.

Qualified conclusion

Based on our review, except for the effect of adjustments, if any, as might have been made to the consolidated financial statements had the financial statements of these non-significant subsidiaries been reviewed by us as described in the paragraph of basis of qualified conclusion, nothing has come to our attention that caused us to believe that the accompanying consolidated financial statements do not present fairly, in all material aspects the consolidated financial position of the POCS Group as of September 30, 2021 and 2020, and its consolidated financial performance for the three months ended September 30, 2021 and 2020, and its consolidated financial performance and its consolidated cash flows for the nine months then ended September 30, 2021 and 2020 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34 “Interim Financial Reporting” endorsed by the Financial Supervisory Commission

PricewaterhouseCoopers, Taiwan

Huang, Pei-Chuan

Accountant Pan Hui-ling

November 8, 2021

~3~

Prime Oil Chemical Service Corporation and subsidiaries Consolidated balance sheets

September 30, 2021, December 31,2020 and September 30, 2020

(The accompanying consolidated balance sheets as of September 30, 2021 and 2020 have been reviewed only, and have not been audited in accordance with generally accepted auditing standards.)

Unit: NTD thousand

Assets	Note	September 30, 2021 Amount % $ 144,749 9 16,124 1 239 - 45,110 3 - - 13,078 1 219,300 14 84,546 5 34,390 2 2,300 - 1,165,158 72 41,079 3 4,527 - 5,469 - 61,678 4 1,399,147 86 $ 1,618,447 100 (Continued)	December 31, 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	September 30, 2020	September 30, 2020
		Amount $ 144,749 16,124 239 45,110 - 13,078 219,300 84,546 34,390 2,300 1,165,158 41,079 4,527 5,469 61,678 1,399,147 $ 1,618,447 (Continued)	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	Amount $ 135,427 16,849 - 36,026 - 22,735 211,037 64,485 37,221 - 1,122,782 98,793 5,725 4,120 57,750 1,390,876 $ 1,601,913	%
Current assets 1100 Cash and cash equivalents 1136 Financial assets 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 at amortized cost - noncurrent 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	6 (1) 6 (4) 6 (5) 6 (5) and 12 (2) 6 (2) 6(3) 6 (4) and 8 6 (6) 6 (7) 8				9 1 - 2 - 1
					13
					4 2 - 70 6 1 - 4
					87
					100

~4~

Prime Oil Chemical Service Corporation and subsidiaries Consolidated balance sheets

September 30, 2021, December 31,2020 and September 30, 2020

(The accompanying consolidated balance sheets as of September 30, 2021 and 2020 have been reviewed only, and have not been audited in accordance with generally accepted auditing standards.)

Unit: NTD thousand

Liabilities and Stockholders’Equity

September 30, 2021 December 31, 2020 September 30, 2020 Note Amount % Amount % Amount % 6 (9) $ 63,100 4 $ 98,800 6 $ 141,000 9 6 (9) 19,000 1 45,500 3 18,500 1 1,758 - 6,881 - 1,344 - 6 (11) 178,137 11 76,996 5 54,984 3 15,806 1 27,143 2 17,468 1 33,441 2 53,070 3 58,255 4 6 (10) 63,412 4 55,796 3 43,692 3 374,654 23 364,186 22 335,243 21 6 (10) 242,652 15 171,492 11 191,448 12 6 (13) 23,647 2 21,923 1 19,930 1 3,405 - 2,905 - 2,731 - 4,764 - 24,778 2 39,378 3 6 (12) 6,889 1 7,856 1 7,108 1 6,450 - 6,450 - 6,850 - 287,807 18 235,404 15 267,445 17 662,461 41 599,590 37 602,688 38 6 (14) 690,344 43 690,344 42 690,344 43 6 (15) 4,233 - 4,233 - 4,233 - 6(16) 187,193 11 171,221 11 171,221 11 13,064 1 - - - - 80,335 5 185,215 11 148,135 9 ( 19,666) ( 1) ( 13,064) ( 1) ( 15,208) ( 1) 955,503 59 1,037,949 63 998,725 62

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

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

~5~

Prime Oil Chemical Service Corporation and subsidiaries Consolidated balance sheets

September 30, 2021, December 31,2020 and September 30, 2020

(The accompanying consolidated balance sheets as of September 30, 2021 and 2020 have been reviewed only, and have not been audited in accordance with generally accepted auditing standards.)

company 36XX Non-controlling interests 3XXX Total equity Significant contingent liabilities and unrecognized contract commitments 3X2X Total liabilities and equity	483 955,986 $ 1,618,447	- 59 100	489 1,038,438 $ 1,638,028	- 63 100	Unit: NTD thousand 500 - 999,225 62 $ 1,601,913 100

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

~6~

Prime Oil Chemical Service Corporation and subsidiaries Consolidated income statements

January 1 to September 30, 2021 and 2020

(Reviewed only, not audited in accordance with generally accepted auditing standards)

Item	July 1 to September 30,2021 Note Amount % 6(8) (17) $ 109,417 100 6(20) (21) (75,486) ( 69) 33,931 31 6(20) (21) ( 1,261) ( 1) (12,400) ( 12) (13,661) ( 13) 20,270 18 64 - 801 1 6(18) ( 15,031) ( 14) 6(19) ( 458) - (14,624) ( 13) 5,646 5 6(22) ( 4,376) ( 4) $ 1,270 1 6(3) ($ 2,300) ( 2) ( 2,300) ( 2) ( 68) - 6(22) 14 -	July 1 to September 30,2020 Amount % $ 136,225 100 ( 69,486 ) ( 51) 66,739 49 ( 1,323 ) ( 1) ( 17,176 ) ( 13) ( 18,499 ) ( 14) 48,240 35 47 - 3,624 3 ( 570 ) - ( 802 ) ( 1) 2,299 2 50,539 37 ( 10,035 ) ( 7) $ 40,504 30 $ - - - - ( 3,569 ) ( 3) 714 1	Unit: NTD thousand (Except for earnings per share) January 1 to September 30,2021 January 1 to September 30,2020 Amount % Amount % $ 365,361 10 0 $ 399,205 100 ( 230,490) (63 ( 211,223 ) ( 53) 134,871 37 187,982 47 ( 4,682) ( 1 ( 4,131 ) ( 1) ( 46,628) (13 ( 49,014 ) ( 12) ( 51,310) (14 ( 53,145 ) ( 13) 83,561 23 134,837 34 204 - 328 - 1,670 - 3,923 1 ( 2,630) ( 1 569 - ( 1,661) - ( 2,598 ) - ( 2,417) ( 1 2,222 1 81,144 22 137,059 35 ( 16,922) ( 5 ( 15,242 ) ( 4) $ 64,222 17 $ 121,817 31 ($ 5,171) ( 1 ($ 3,125 ) ( 1) ( 5,171) ( 1 ( 3,125 ) ( 1) ( 4,293) ( 1 ( 5,585 ) ( 1) 859 - 1,117 -
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 Other comprehensive income for the year (net) Items that will be reclassified to profit or loss 8316 Unrealized valuation gain or loss on equity instruments at fair value through other comprehensive income 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

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

~7~

Prime Oil Chemical Service Corporation and subsidiaries Consolidated income statements

January 1 to September 30, 2021 and 2020

(Reviewed only, not audited in accordance with generally accepted auditing standards)

8360 Total of items that may be reclassified to profit or loss ( 54) - ( 8300 Other comprehensive income for the year (net) ($ 2,354) ( 2) ( 8500 Total comprehensive income in the current period ($ 1,084) ( 1) Net income attributable to:： 8610 Shareholders of the parent company $ 1,272 1 8620 Non-controlling interests ( 2) - ( $ 1,270 1 Total comprehensive income attributable to 8710 Shareholders of the parent company ($ 1,082) ( 1) 8720 Non-controlling interests ( 2) - ( ($ 1,084) ( 1) Earnings per share 6(23) 9750 Basic $ 0.02 9850 Diluted $ 0.02	2,855 ) ( 2) ( $ 2,855 ) ( 2) ( $ 37,649 28 $ 40,506 30 2 ) - ( $ 40,504 30 $ 37,651 28 2 ) - ( $ 37,649 28 $ 0.59 $ 0.59	Unit: NTD thousand (Except for earnings per share) 3,434) ( 1 ( 4,468 ) ( 1) $ 8,605) ( 2 ($ 7,593 ) ( 2) $ 55,617 15 $ 114,224 29 $ 64,228 17 $ 121,812 31 6) - 5 - $ 64,222 17 $ 121,817 31 $ 55,623 15 $ 114,219 29 6) - 5 - $ 55,617 15 $ 114,224 29 $ 0.93 $ 1.76 $ 0.93 $ 1.76

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

~8~

Prime Oil Chemical Service Corporation and subsidiaries Consolidated statements of changes in equity January 1 to September 30, 2021 and 2020

(Reviewed only, not audited in accordance with generally accepted auditing standards)

Unit: NTD thousand

Note The 3st quarter of 2020 Balance at January 1, 2020 Current period net profit Other comprehensive income recognized for the period Total comprehensive income in the current period Appropriations of 2019 earnings6(16) Legal reserve Cash dividends Changes in non-controlling interests Balance at September 30, 2020	Note				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	Total equity
		Share capital - common stock $ 690,344 - - - - - - $ 690,344	Capital surplus		Retained earnings	Otherequityinterests
					Legal reserve Special reserv 157,731 $ - - - - - - - 13,490 - - - - - 171,221 $ -	Unappropr iated retained earnings Exchange Differences in Translating the Financial Statements of Foreign Operations	Unrealized gain or loss on financial assets at fair value through other comprehensive income
			$ 4,233 - - - - - - $ 4,233	$							$	1,003,488 121,817 7,593)- 114,224 - ( 113,907)- 4,580 ) 999,225
					- -						(
					-
				$							$

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

~9~

Prime Oil Chemical Service Corporation and subsidiaries Consolidated statements of changes in equity January 1 to September 30, 2021 and 2020

(Reviewed only, not audited in accordance with generally accepted auditing standards)

Unit: NTD thousand

Note 3st quarter of 2021 Balance at January 1, 2021 Current period net profit Other comprehensive income recognized for the period Total comprehensive income in the current period Appropriations of 2019 earnings6(16) Legal reserve Cash dividends Disposal of equity instruments at fair 6(3) value through other comprehensive profit or loss Balance at September 30, 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			Non-controlling interests $ 489 ( 6) - ( 6) - - - - $ 483	Total equity
		Share capital - common stock $ 690,344 - - - - - - - $ 690,344	Capital surplus		Retained earnings		Otherequityinterests			Total
					Legal reserve Special reserv 171,221 $ - - - - - - - 15,972 - - 13,064 - - - - 187,193 $ 13,064	Unappropr iated retained earnings Exchange Differences in Translating the Financial Statements of Foreign Operations Unrealized gain or loss on financial assets at fair value through other comprehensive income e $185,215 ($ 10,992 ) ($ 2,072 ) 64,228 - - - ( 3,434 ) ( 5,171 ) 64,228 ( 3,434 ) ( 5,171 ) ( 15,972) - - ( 13,064) - - ( 138,069) - - ( 2,003) - 2,003 $ 80,335 ($ 14,426 ) ($ 5,240 )	Unappropr iated retained earnings Exchange Differences in Translating the Financial Statements of Foreign Operations	Unrealized gain or loss on financial assets at fair value through other comprehensive income
			$ 4,233 - - - - - - - $ 4,233	$					$ 1,037,949 64,228 ( 8,605 ) 55,623 - - ( 138,069) - $ 955,503			$ 1,038,438 64,222 ( 8,605 ) 55,617 - - ( 138,069) - $ 955,986
					- -
					-
				$

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

~10~

Prime Oil Chemical Service Corporation and subsidiaries Consolidated cash flow statements

January 1 to September 30, 2021 and 2020

(Reviewed only, not audited in accordance with generally accepted auditing standards)

Unit: NTD thousand

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 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 Acquisitions of financial assets at amortized cost Purchase of property, plant and equipment Disposal of property, plant and equipment Acquisition of intangible assets Decrease in refundable deposits Net cash used in investing activities Cash flow from financing activities

Note January 1 to September 30, 2021 January 1 to September 30, 2020 $ 81,144 $ 137,059 6 (6)(7) (20) 130,813 117,036 6 (20) 1,032 798 6 (2)(18) 1,554 ( 2,765 ) 6 (19) 1,661 2,598 ( 204 ) ( 328 ) ( 445 ) ( 650 ) 6 (18) ( 95 ) ( 359 ) 6 (7) ( 31 ) ( 236 ) 5 133 54 ( 360 ) 1,960 174 2,950 ( 4,088 ) ( 5,123 ) ( 6,048 ) ( 8,601 ) 1,542 ( 36 ) ( 59 ) ( 967 ) ( 881 ) 205,671 243,566 ( 1,661 ) ( 2,598 ) 204 328 ( 27,356 ) ( 14,546 ) 445 650 177,303 227,400 12 (3) ( 28,141 ) ( 29,288 ) 12 (3) 9,115 7,661 3,419 ( 2,300 ) 6 (24) ( 131,496 ) ( 265,929 ) 95 1,271 ( 151 ) ( 2,515 ) ( 2,782 ) ( 11,315 ) ( 152,241 ) ( 300,115 )

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

~11~

Prime Oil Chemical Service Corporation and subsidiaries Consolidated cash flow statements

January 1 to September 30, 2021 and 2020

(Reviewed only, not audited in accordance with generally accepted auditing standards)

Unit: NTD thousand

Decrease in short-term borrowings Increase (decrease) in short-term bills payable 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) Increase in refundable deposits Amount of principal payments on lease liabilities Cash dividends paid Non-controlling interests Net cash inflow from financing activities Effects of exchange rate changes on the balance of cash held in foreign currencies Increase in cash and cash equivalents Beginning of year cash and cash equivalents Cash and cash equivalents at the end of the year

Note January 1 to September 30, 2021 January 1 to September 30, 2020 ( 35,700 ) 57,400 ( 26,500 ) 7,500 120,000 165,000 ( 41,188 ) ( 21,114 ) 400 6 (7) ( 39,643 ) ( 39,490 ) 6(17) ( 113,907 ) ( 4,580 ) ( 23,031 ) 51,209 2 2,175 2,033 ( 19,331 ) 142,716 154,758 $ 144,749 $ 135,427

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

~12~

Prime Oil Chemical Service Corporation and its subsidiaries Notes to consolidated financial statements 3st Quarter in 2021 and 2020

(Reviewed only, not audited in accordance with generally accepted auditing standards)

Unit: NTD thousand (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 accompanying consolidated financial statements were approved and authorized for issuance by the Board of Directors on November 8, 2021.

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:

Effective Date Issued New, Revised or Amended Standards and Interpretations by IASB Amendment to IFRS 4 "Extension of Provisional Exemption for January 1, 2021 Application of IFRS 9"

Amendments to the IFRS 9, IAS 39, and IFRS 7, IFRS 4 and IFRS January 1, 2021 16 “Interest Rate Benchmark Reform - Phase II.” Amendment to IFRS 16, ‘Covid-19-related rent concessions April 1, 2021 (Note) beyond 30 June 2021

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

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

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

~13~

	Effective Date Issued
New, Revised or Amended Standards and Interpretations	by IASB
Amendment to IFRS 3 "Update the index of the conceptual	January 1, 2022
framework.”
Amendment to IAS 16 "Property, plant and equipment: price	January 1, 2022
before reaching the intended state of use"
Amendment to IAS 37 "Onerous Contracts - Cost of Performing	January 1, 2022
Contracts”
“Annual Improvements 2018 - 2020 Cycle”	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 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.” Amendments to IAS 12 “Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

Effective Date Issued by

IASB To be decided by the IASB 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.

IV. Summary of significant accounting policies

The significant accounting policies are the same as those described in Note 4 to the consolidated financial statements as of and for the year ended December 31, 2020, except for the statement of compliance, the basis of preparation, the basis of consolidation, and the new sections described below. These policies have been consistently applied to all the periods presented, unless otherwise stated.

(I) Compliance statement

1. The consolidated financial statements have been prepared in accordance with the "Regulations Governing the Preparation of Financial Reports by Securities Issuers" and

~14~

International 34 “Interim Financial Reporting” endorsed by the Financial Supervisory Commission

1. The consolidated financial statements should be read in conjunction with the consolidated financial statements as of and for the year ended December 31, 2020.

2. (II) Basis of preparation

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

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

   • (2) Other comprehensive income at fair value through profit or loss are measured at fair value.

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

4. 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 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.

5. (III) Basis of consolidation

6. The basis for preparation of consolidated financial statements

The consolidated financial statements have been prepared in accordance with the same principles as the consolidated financial statements.as of and for the year ended December 31, 2020.

1. Subsidiaries included in consolidated financial statements

Shareholding percentage (%)

Investor The Company The Company The Company PHC	Investee Ho Chen Feng Co., Ltd. POCS Power Co., Ltd. Prime Holdings Corporation (PHC) Prime Solar Energy Co., Ltd.	Main Business Real Estate Leasing Solar Power Industry Shareholding and General Trading Real Estate Development	September	December	September 30, 2020 Descriptio n 69.47 Note 2 100.00 Note 2 100.00 Note 2 100.00 Note 1 and 2
			30, 2021 69.47 100.00 100.00 100.00	31, 2020 69.47 100.00 100.00 100.00

• 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.

~15~

Note 2: Their financial statements as of September 30, 2021 and 2020 were not reviewed by CPAs because they did not meet the definition of a significant subsidiary.

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

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

3. Significant restrictions: No such situation.

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

(IV) Financial assets measured at amortized cost

1. Are those that meet all the following criteria:

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

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

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

3. (V) Employee benefits

Pension ~ defined benefit plan

The pension cost for the interim period is calculated using the actuarially determined pension cost rate as of the end of the previous fiscal year and is based on the beginning of the year to the end of the current period. If there are significant market changes and material reductions, settlements or other significant one-time events after the cut off day, adjustments will be made and the relevant information will be disclosed in accordance with the aforementioned policy.

(VI) Income tax

The income tax expense for the interim period is calculated by applying the estimated average effective tax rate for the year to the income before tax for the interim period and the related information is disclosed.

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

There were no significant changes during the period. Please refer to Note 5 of the Notes to Consolidated Financial Statements as of and for the year ended December 31, 2020.

VI. Statements of main accounting items

(I) Cash and cash equivalents

Cash on hand and working capital Checking accounts and demand deposits Time deposits	September 30, 2021 December 31, 2020 September 30, 2020 $ 227 $ 217 $ 244 85,872 83,849 76,533 58,650 58,650 58,650	September 30, 2021 December 31, 2020 September 30, 2020 $ 227 $ 217 $ 244 85,872 83,849 76,533 58,650 58,650 58,650	September 30, 2021 December 31, 2020 September 30, 2020 $ 227 $ 217 $ 244 85,872 83,849 76,533 58,650 58,650 58,650	September 30, 2021 December 31, 2020 September 30, 2020 $ 227 $ 217 $ 244 85,872 83,849 76,533 58,650 58,650 58,650
	$	144,749 $	142,716 $	135,427

~16~

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.

(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	September 30, 2021 $ 75,720 8,826 $ 84,546	September 30,	September 30,	December 31, 2020 $ 56,694 10,380 $ 67,074	September 30, 2020 $ 54,105 10,380 $ 64,485	September 30,	September 30,
			2021 75,720 8,826 84,546				2020 54,105 10,380 64,485
	$			$	$

1. Gain and loss recognized for financial assets at fair value through profit or loss held by the Group was ($15,054) $0, ($1,554) and $2,765 from July 1 to September 30, 2021 and 2020, January 1 to September 30,2021 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	September 30, 2021 $ 37,526 ( 3,136) $ 34,390	September 30,	September 30,	December 31, 2020 $ 36,879 6,101 $ 42,980	September 30, 2020 $ 36,879 342	September 30,	September 30,
			2021 37,526 3,136) 34,390				2020 36,879 342
	$			$	$		37,221

1. The 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 $34,390, $42,980 and $37,221 as of September 30, 2021, December 31, 2020 and September 30, 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,

~17~

	July 1 to September	July 1 to September	July 1 to September
	30, 2021		30, 2020
Change in fair value recognized in other
comprehensive Income	($ 2,300)		$	-
Cumulative gains (losses) reclassified to
retained earnings due to derecognition	($ 2,003)		$	-
Dividends income recognized in profit or loss and still held at the end of the period	$	223	$ 650
De-recognized during the period		222		-
	$	445	$ 650
	January 1	to	January 1 to
	September 30,	2021	September 30, 2020
Change in fair value recognized in other
comprehensive Income	($ 5,171)		($ 3,125)
Cumulative gains (losses) reclassified to
retained earnings due to derecognition	($ 2,003)		$	-
Dividends income recognized in profit or loss and still held at the end of the period	$	223	$ 650
De-recognized during the period		222		-
	$	445	$ 650

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 Group's maximum exposure to credit risk was $34,390, $42,980 and $37,221 as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively.

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

3. (IV) Financial assets measured at amortized cost

Item Current items: Trust account Non-current items: Restricted asset	$	September 30, 2021 16,124 2,300	$	December 31, 2020 16,489 —	$	September 30,	September 30,
							2020 16,849 —
	$		$		$

~18~

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

profit and loss are as follows:
Interest income loss on valuation Interest income loss on valuation	July 1 to September 30, 2021 $ – ($ 6) ($ 6) January 1 to September 30, 2021 $ 3 ( 365) ($ 362)	July 1 to September 30, 2020 $ – $– $– January1 to September 30, 2020 9 ($ 1,925) ($ 1,916)
		($

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 $16,124, $16,489 and $16,849 as of September 30, 2021, December 31, 2020 and September 30, 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 Group entered into a contract for the construction of a solar power generation system (the "construction contract") and a contract for the purchase of solar power generation system equipment (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 third-party financial institution; as of June 30, 2021, December 31, 2020 and June 30, 2020, the balance of the trust account was US$580 thousand, which is shown as "Other financial assets - current" due to the restricted use.

5. 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 letter to Chunghwa Telecom Vietnam to remind Chunghwa Telecom Vietnam to perform its obligations under the construction contract within the deadline, but after the expiration of the reminder period, Chunghwa Telecom Vietnam still failed to perform the contract obligations, so the Company legally terminated the construction contract, and the Company has appointed a lawyer to commence the relevant legal proceedings.

6. 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.

~19~

(V) Notes and accounts receivable

Notes and accounts receivable
Note receivable Trade receivable	September 30, 2021 $ 239 $ 45,110	$	December 31, 2020 244 45,164	September 30, 2020 $– $ 36,026
	$	$		$

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

Not Past Due	September 30, 2021 Trade receivable Note receivable $45,110 $ 239	December 31, 2020 Trade receivable Note receivable $45,164 $ 244	September 30, 2020 Trade receivable Note receivable $36,026 $–	September 30, 2020 Trade receivable Note receivable $36,026 $–

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

1. As of September 30, 2021, December 31, 2020 and September 30, 2020, the balances of accounts receivable (including notes receivable) were generated from customer contracts, and the balance of accounts receivable from customer contracts as of January 1, 2020 was $35,799.

2. The Group does not hold any collateral.

3. Without considering the collaterals held or other credit enhancements, the amount of notes receivable that best represented the Group's maximum exposure to credit risk was $239, $244 and $0 as of June 30, 2021, December 31, 2020 and June 30, 2020, respectively; the amount of accounts receivable that best represented the Group's maximum exposure to credit risk was $45,110 , $45,164 and $36,026 as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively;

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

~20~

(VI) Property, Plant and Equipment

January 1 Cost Accumulated depreciation and impairments January 1 Addition Number of Transfers depreciation expense Net exchange difference September 30 September 30 Cost Accumulated depreciation and impairment											2021
	Land $45,278 - $45,278 $45,278 - - - ( 1,003) $44,275 $44,275 - $44,275		Warehousing Equipment $629,277 ( 363,858) $265,419 $265,419 30,289 14,019 ( 45,923) - $263,804 $628,690 ( 364,886) $263,804	Warehousing	Transport Equipment $ 8,161 ( 3,945) $ 4,216 $ 4,216 2,611- 100- ( 818) - $ 6,109 $ 10,002 ( 3,893) $ 6,109		Office Equipment $ 1,648 ( 1,278) $ 370 $ 370 55- - ( 62) - $ 363 $ 522 ( 159) $ 363			Lease Improvement $ 1,037 ( 750) $ 287 $ 287 - - ( 90) - $ 197 $ 884 ( 687) $ 197	Lease Improvement	Lease Assets $909,441 ( 878,773) $ 30,668 $ 30,668 - - ( 8,168) - $ 22,500 $ 93,346 ( 70,846) $ 22,500		Other Equipment $864,658 ( 100,655) $764,003 $764,003 54,306 20,328 ( 32,274) ( 2,896) $803,467 $936,261 ( 132,794) $803,467				Construction
																		in progress $ 41,258 - $ 41,258 $ 41,258 17,632 34,447) - - $ 24,443 $ 24,443 - $ 24,443
																	(

~21~

2020

							2020
			Warehousing	Transport	Office		Lease	Lease		Other	Construction
	Land		Equipment	Equipment	Equipment	Improvement		Assets		Equipment	in progress	Total
January 1
Cost	$ 47,667		$567,780	$ 7,127	$ 1,648	$ 1,037		$909,441		$634,198	$13,952	$2,182,850
Accumulated depreciation
and impairments		-	( 315,860)	( 5,041)	( 1,200)	(	687)	( 866,025)		( 63,058)	-	( 1,251,871)
	$ 47,667		$251,920	$ 2,086	$ 448	$ 350		$ 43,416		$571,140	$13,952	$ 930,979
January 1	$ 47,667		$251,920	$ 2,086	$ 448	$ 350		$ 43,416		$571,140	$13,952	$ 930,979
Addition		-	41,111	3,690	-		-		-	141,719	85,130	271,650
Amount transferred due to
disposal				( 912)								( 912)
Number of Transfers			669								( 669)
depreciation expense		-	( 35,300)	( 829)	( 58)	(	47)	( 9,893)		( 27,517)	-	( 73,644)
Net exchange difference	( 1,322)		-	-	-		-		-	( 3,969)	-	( 5,291)
September 30	$ 46,345		$258,400	$ 4,035	$ 390	$ 303		$ 33,523		$681,373	$98,413	$ 1,122,782
September 30
Cost	$ 46,345		$609,560	$ 7,689	$ 1,648		$ 1,037	$909,441		$771,934	$98,413	$2,446,067
Accumulated depreciation
and impairment		-	( 351,160)	( 3,654)	( 1,258)	(	734)	( 875,918)		( 90,561)	-	( 1,323,285)
	$ 46,345		$258,400	$ 4,035	$ 390	$ 303		$ 33,523		$681,373	$98,413	$ 1,122,782

~22~

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

Capitalized amount Capitalized interest rate range	January 1 to September 30, 2021 $ 4,117 0.95%~1.54%	January 1 to September	January 1 to September 30, 2020 $ 2,228 0.95%~1.76%	January 1 to September

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

2. The Group's property, plant and equipment showed no signs of impairment from January 1 to September 30, 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		September 30, 2021 Carrying amount $ 9,372 1,162 30,545 $ 41,079	September 30,		December 31, 2020 Carrying amount $ 9,754 6,392 68,411 $ 84,557	December 31,		September 30, 2020 Carrying amount $ 9,881 8,136 80,776 $ 98,793	September 30,

Land use rights Buildings Other Equipment	July 1 to September 30, 2021 Depreciation expense $ 128 1,743 12,622 $ 14,493	July 1 to September 30, 2021 Depreciation expense $ 128 1,743 12,622 $ 14,493	July 1 to September 30, 2020 Depreciation expense $ 126 1,743 12,622 $ 14,491

~23~

Land use rights Buildings Other Equipment	January 1 to September 30, 2021 Depreciation expense $ 382 5,230 37,866 $ 43,478	January 1 to September 30, 2021 Depreciation expense $ 382 5,230 37,866 $ 43,478	January 1 to September 30, 2020 Depreciation expense $ 296 5,230 37,866 $ 43,392

1. The additions to the Group's right-of-use assets were $0 and $10,177 from January 1 to September 30, 2021 and 2020, respectively.

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

	July 1 to September 30,	July 1 to September 30,	July 1 to September 30,	July 1 to September 30,	July 1 to September 30,	July 1 to September 30,
		2021			2020
Items affecting current profit and
loss
Interest expenses on lease liabilities	$		194	$		455
Expenses for leases of low-value assets			92			71
Expenses for variable lease payments			2,236			1,485
Gain on lease modification			31			–
		January 1 to		January 1		to
	September 30, 2021			September 30, 2020
Items affecting current profit and loss
Interest expenses on lease liabilities	$		781	$		1,536
Expenses for leases of low-value assets			261			244
Expenses for variable lease payments			5,448			4,386
Gain on lease modification			31			236

1. The Group's total lease cash outflows were $46,133 and $45,656 from January 1 to September 30, 2021 and 2020, respectively (of which $39,643 and $39,490 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.

~24~

(VIII) Leasing arrangements - lessor

1. The subject assets leased by the Group are warehousing equipment. The lease agreements are usually for a period of 1 to 3 years and are negotiated on an individual basis and contain various terms and conditions.

2. 、 、

3. 1. The Group recognized rental income of $63,612 $97,773 $231,967 and $279,347 from July 1 to September 30, 2021 and 2020, January 1 to September 30,2021 and 2020 respectively, based on operating lease agreements, in which no variable lease payments were included.

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

2020 2021 2022 2023 Total	September 30, 2021 $ - 57,049 34,740 6,580 $ 98,369	September 30,	September 30,	$	December 31,	December 31,	September 30, 2020 $ 96,753 50,421 3,000 - $ 150,174	September 30,	September 30,
			2021 - 57,049 34,740 6,580 98,369			2020 - 268,477 29,270 5,860 303,607			2020 96,753 50,421 3,000 - 150,174
				$			$

(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 Nature of borrowings Bank borrowings Credit borrowings Short-term bills payable	September 30, 2021 $ 63,100 $ 19,000 December 31, 2020 $ 98,800 $ 45,500 September 30, 2020 $ 141,000 $ 18,500	Interest rate 1.15%~1.301% 0.78% Interest Rate 0.95%~2.06% 0.78% Interest Rate 0.95%~1.30% 0.78%	Collateral None None Collateral None None Collateral None None

~25~

- (X) Long term borrowings

Nature of borrowings Credit borrowings Land Bank of Taiwan Land Bank of Taiwan Land Bank of Taiwan Land Bank of Taiwan Chinatrust Commercial Bank Chinatrust Commercial Bank Secured borrowings Land Bank of Taiwan Mega International Commercial Bank.	Borrowing Period and Repayment Method 2017.7.7~2022.7.7 The principal and interest shall be repaid in 48 equal installments commencing from (inclusive) August 7, 2018. 2018.5.7~2023.5.7 The principal and interest shall be repaid in 48 equal installments commencing from (inclusive) June 7, 2019. 2018.3.26~2025.3.26 The principal and interest shall be repaid in 84 equal installments commencing from (inclusive) April 26, 2018. 2021.2.26~2031.2.26 The principal and interest shall be repaid in 120 equal installments commencing from (inclusive) March 26, 2021. 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 2020.9.18~2023.6.30 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 2021.2.26~2031.2.26 The principal and interest shall be repaid in 120 equal installments commencing from (inclusive) March 26, 2021. 2018.12.26~2028.12.26 The principal and interest shall be repaid in 40 equal installments commencing from (inclusive) March 26, 2019. (Note)	Interest Rate Collateral 1.51% None 1.51% None 1.51% None 1.50% None 1.20% None 1.20% None 1.50% Other Equipment 1.54% Other Equipment	September 30, 2021 $ 10,689 4,070 11,710 9,542 34,000 34,000 68,950 10,875
			$

~26~

Mega	2019.12.4~2028.12.26
International Commercial	The principal and interest shall be repaid in 37 equal installments commencing from	1.54%	Other Equipment			15,676
Bank.	(inclusive) December 26, 2019. (Note)
Mega	2020.3.31~2028.12.26
International Commercial	The principal and interest shall be repaid in 35 equal installments commencing from	1.54%	Other Equipment			70,429
Bank.	(inclusive) March 31, 2020. (Note)
Mega	2021.3.31~2031.3.31
International Commercial	The principal and interest shall be repaid in 40 equal installments commencing from	1.515%	Other Equipment			4,750
Bank.	(inclusive) June 30, 2021. (Note)
Mega	2021.9.29~2031.3.31
International Commercial	The principal and interest shall be repaid in 40 equal installments commencing from	1.515%Other Equipment				14,615
Bank.	(inclusive) September 29, 2021. (Note)
	2021.6.29~2026.6.29
Far Eastern International Bank	0.55% of the principal shall be repaid in 60 installments commencing from (inclusive) June 29, 2021. The remaining principal shall be fully repaid at maturity	1.515%	Other Equipment			16,720
						306,026
Less: Portions liabilities)	due within one year or one operating cycle (recorded as		other current		(	63,374)
					$	242,652
	Nature of borrowings Borrowing Period and Repayment Method	Range of interest rate	Collateral	December 31, 2020
Credit borrowings
	2017.7.7~2022.7.7
Land Bank of Taiwan The principal and interest shall be repaid in 48 equal installments commencing from (inclusive) August		1.51%	None		$	20,195
	7, 2018.
	2018.5.7~2023.5.7
Land Bank of Taiwan The principal and interest shall be repaid in 48 equal installments commencing from (inclusive) June 7,		1.51%	None			5,869
	2019.
	2018.3.26~2025.3.26
Land Bank of Taiwan The principal and interest shall be repaid in 84 equal installments commencing from (inclusive) April		1.51%	None			14,139
	26, 2018.

~27~

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 Chinatrust Commercial Bank 2020.9.18~2023.6.30 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 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)

40,000 40,000 12,000 17,297 77,714 227,214 ( 55,722) $ 171,492

~28~

Nature of borrowings	Borrowing Period and Repayment Method	Range of interest rate	Collateral	September 30, 2020	September 30, 2020
Credit borrowings
	2017.7.7~2022.7.7
Land Bank of Taiwan	The principal and interest shall be repaid in 48 equal installments commencing from (inclusive)	1.51%	None	$	23,340
	August 7, 2018.
	2018.5.7~2023.5.7
Land Bank of Taiwan	The principal and interest shall be repaid in 48 equal installments commencing from (inclusive) June	1.51%	None		6,464
	7, 2019.
	2018.3.26~2025.3.26
Land Bank of Taiwan	The principal and interest shall be repaid in 84 equal installments commencing from (inclusive) April	1.51%	None		14,943
	26, 2018.
	2020.6.30~2023.6.30
	15% of the principal shall be repaid
Chinatrust Commercial Bank	in 5 installments commencing from (inclusive) June 30, 2021. The	1.20%	None		40,000
	remaining principal shall be fully
	repaid at maturity
	2020.9.18~2023.6.30
	15% of the principal shall be repaid
Chinatrust Commercial Bank	in 5 installments commencing from (inclusive) June 30, 2021. The	1.20%	None		40,000
	remaining principal shall be fully
	repaid at maturity
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)	1.54%	Other Equipment		12,375
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)	1.54%	Other Equipment		17,838
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)	1.54%	Other Equipment		80,143
				235,103

~29~

Less: Portions due within one year or one operating cycle (recorded as other ( 43,655) current liabilities) $ 191,448

• Note: The 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 Group's consolidated financial statements for 2010 did not meet this review, but if the bank increases the interest rate, there should be no significant impact on the Group. In addition, the Group entered into a new loan agreement for a facility amount of $62,400 with Mega Bank in February 2021 with the same contract terms as in 2018.

(XI) Other payables

Cash dividends payables Equipment payables Employees' bonuses and directors' and supervisors' remuneration payable Salary payables Others	$	September 30,	September 30,	$	December 31,	December 31,	$	September 30,	September 30,
			2021 138,069 13,935 4,928 7,581 13,624 178,137			2020 – 42,262 11,974 9,607 13,153 76,996			2020 – 23,224 8,866 7,533 15,361 54,984
	$			$			$

(XII) Pensions

1. Defined benefit plan

• (1) 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

~30~

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) July 1 to September 30, 2021 and 2020, January 1 to September 30,2021 and 2020 the pension costs recognized by the Group in accordance with the aforementioned 、 、

• pension plan were $52 $76 $156 and $228, respectively.

• (3) The company's estimated contribution to pay for the pension plan in 2022 was $1,494.

• Defined contribution plan

Since July 1, 2005, 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 $576 $571 $1,724 and $1,788 for July 1 to September 30, 2021 and 2020, January 1 to September 30,2021 and 2020 respectively, based on the above pension plan.

(XIII) Provision

vision
Balance as of January 1 Provision added this period Balance as of September 30	January 1 to September 30, 2021 $ 21,923 1,724 $ 23,647	January 1 to September		January 1 to September 30, 2020 $ 17,640 2,290 $ 19,930	January 1 to September
			30, 2021 21,923 1,724 23,647			30, 2020 17,640 2,290 19,930
	$			$

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 contract, the 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 September 30, 2021, December 31, 2020 and September 30, 2020.

2. The Group's solar power generation sites are built on the roof. According to the contract, the 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

~31~

$13,761, $12,037 and $10,044 as of September 30, 2021, December 31, 2020 and September 30, 2020, respectively.

(XIV) Share capital

As of September 30, 2021, the Company's authorized capital was $2,000,000 and the paidin capital was $690,344, divided into 69,034 thousand shares with a par value of $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:

Number at the beginning of the period (i.e. Number at the end of the period)	January 1 to September 30, 2021 69,034 thousand shares	January 1 to September 30, 2020 69,034 thousand shares

- (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 Auguest 18, 2021, the Board of Directors proposed to approve the distribution of earnings for 2020, and on June 16, 2020, the shareholders’ meeting resolved to approve the distribution of earnings for 2019, as follows.

~32~

Legal reserve allocated Allocated special reserve Cash dividends paid Total	Amount $ 15,972 13,064 138,069 $167,105	2020 Dividends per share (NTD) $ 2.00	Amount $ 13,490 - 113,907 $127,397	2019 Dividends per share	2019 Dividends per 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. 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 Tank operation revenue Electricity sales revenue Total		July 1 to September 30, 2021 $ 63,612 20,560 25,245 $ 109,417		July 1 to September 30, 2020
				$ 97,773 14,650 23,802 $ 136,225

Operating lease Rental incomes Revenue from Customer Contract Tank operation revenue Electricity sales revenue Total	January 1 to September 30, 2021 $ 231,967 60,535 72,859 $ 365,361	January 1 to September 30, 2020 $ 279,347 52,819 67,039 $ 399,205	January 1 to September 30,	January 1 to September 30,
				2020 279,347 52,819 67,039 399,205
	$	$

~33~

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

3. (XVIII) Other gains or losses

July 1 to September 30, 2021 Disposal of property, plant and equipment $ – Gain on lease modification 31 Net foreign currency exchange loss ( 8) Gain on financial assets at fair value through profit or loss ( 15,054) ($ 15,031) January 1 to September 30, 2021 Disposal of property, plant and equipment $ 95 Gain on lease modification 31 Net foreign currency exchange loss ( 1,202) Gain on financial assets at fair value through profit or loss ( 1,554) ($ 2,630)	July 1 to September 30, 2021 Disposal of property, plant and equipment $ – Gain on lease modification 31 Net foreign currency exchange loss ( 8) Gain on financial assets at fair value through profit or loss ( 15,054) ($ 15,031) January 1 to September 30, 2021 Disposal of property, plant and equipment $ 95 Gain on lease modification 31 Net foreign currency exchange loss ( 1,202) Gain on financial assets at fair value through profit or loss ( 1,554) ($ 2,630)	July 1 to	July 1 to	July 1 to	September 30,	$ (	July 1 to	July 1 to	July 1 to	September 30,
	($					($
						$ (
						$

(XIX) Financial costs

Interest expenses Bank borrowings Less: The amount of asset capital that meets the requirements Lease liabilities	$ (	July 1 to	September 30,	July 1 to $ ( $	July 1 to	September 30,
			2021 2,074 1,810) 264 194 458			2020 1,223 876) 347 455 802
	$

~34~

Interest expenses Bank borrowings Less: The amount of asset capital that meets the requirements Lease liabilities (XX) Expenses by nature	$ (	January 1 to September	January 1 to September	January 1 to September 30, 2020 $ 3,290 ( 2,228) 1,062 1,536 $ 2,598	January 1 to September	January 1 to September
			30, 2021 4,997 4,117) 880 781 1,661			30, 2020 3,290 2,228) 1,062 1,536 2,598
	$			$

xpenses 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	July 1 to	September 30, 2021 July 1 to 17,916 $ 46,852 355 3,679 3,020 92 2,236 14,997	September 30,
	$		2020 21,794 39,035 329 6,991 3,371 71 1,485 14,909 87,985
	$	89,147 $

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	January 1 to September 30,	January 1 to September 30,	January 1 to September 30,	January 1 to September 30,
	$	2021 57,673 130,813 1,032 19,919 9,033 261 5,448 57,621 281,800	$	2020 62,248 117,036 798 19,556 9,508 244 4,386 50,592 264,368
	$		$

~35~

(XXI) Employee benefits expense

Salary expenses Labor and health insurance expenses Pension costs Directors' remuneration Other employee expenses	July 1 to	July 1 to	September 30, 2021 14,776 1,379 628 176 957 17,916	July 1 to September 30,	July 1 to September 30,	July 1 to September 30,	July 1 to September 30,
		$ $				$	2020 17,459 1,032 647 1,205 1,451
						$	21,794

Salary expenses Labor and health insurance expenses Pension costs Directors' remuneration Other employee expenses	January 1 to September 30,	January 1 to September 30,	January 1 to September 30,	January 1 to September 30,	January 1 to September 30,	January 1 to September 30,	January 1 to September 30,
			$	2021 46,892 4,076 1,880 1,864 2,961		$	2020 49,497 4,085 2,016 3,312 3,338
			$	57,673		$	62,248

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 July 1 to September 30, 2021 and 、 、

2020, January 1 to September 30,2021 and 2020 were $202 $1,631 $2,464 and $4,433, respectively; the estimated profit sharing amount for directors' and supervisors' was 、 、

$202 $1,631 $2,464 and $4,433, respectively, and the aforementioned amounts were recorded as salary expenses.

January 1 to September 30, 2021 and 2020, the profit sharing remuneration to employees and profit sharing remuneration to directors and supervisors were both estimated at 3% based on the profitability of the period.

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.

~36~

(XXII) Income tax

1. Income tax expense

(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: Origination and Reversal of Temporary Differences Income tax expense	July 1 to	July 1 to	July 1 to	July 1 to	July 1 to $ $ January 1	uly 1 to	uly 1 to	September 30, 2020 9,774 － －
		$ $					$
								9,774 261
						$		10,035
								to September 30,
		$ (		2021 15,805 25) －		$ ( $		2020 26,917 12,206) 14
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: Origination and Reversal of Temporary Differences Income tax expense
				15,780 1,142				14,725 517
		$		16,922				15,242

~37~

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

	July 1 to September 30,	July 1 to September 30,
	2021	2020
Translation differences of
foreign operations	$ 14	$ 714
	January 1 to	January 1 to
	September 30, 2021	September 30, 2020
Translation differences of
foreign operations	$ 859	$ 1,117

1. The income tax returns of the Company and its subsidiaries, POCS POWER CO., LTD. and He Zhen Feng Co., Ltd. have been assessed by the tax authorities through 2019.

(XXIII) Earnings per share

July 1 to September 30, 2021 After-tax amount Weighted average Number of shares in circulation (thousands of shares) Earnings per share(NT$) Basic earnings per share Net profits for the period attributable to shareholders of parent company $ 1,272 69,034 $ 0.02 Diluted earnings per share Assumed conversion of all dilutive potential ordinary shares Employee compensation - 8 Net profits for the period attributable to shareholders of common stock of parent company plus the effect of potential common stock $ 1,272 69,042 $ 0.02	July 1 to September 30, 2021 After-tax amount Weighted average Number of shares in circulation (thousands of shares) Earnings per share(NT$)	July 1 to September 30, 2021 After-tax amount Weighted average Number of shares in circulation (thousands of shares) Earnings per share(NT$)	July 1 to September 30, 2021 After-tax amount Weighted average Number of shares in circulation (thousands of shares) Earnings per share(NT$)
		69,034 8 69,042	$ 0.02 $ 0.02

~38~

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 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	July After-tax amount	July	1 to September 30, 2020 Weighted average Number of shares in circulation (thousands of shares) Earnings per share(NT$)
	$ 40,506 -
	$ 40,506

~39~

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	January 1 to September 30, 2020 After-tax amount Weighted average Number of shares in circulation (thousands of shares) Earnings per share(NT$)	January 1 to September 30, 2020 After-tax amount Weighted average Number of shares in circulation (thousands of shares) Earnings per share(NT$)	January 1 to September 30, 2020 After-tax amount Weighted average Number of shares in circulation (thousands of shares) Earnings per share(NT$)
	$ 121,812 - $ 121,812	69,034 276 69,310	$ 1.76 $ 1.76

(XXIV) Supplemental cash flow information

1.Investing activities that are only partially paid in cash

Purchase of property, plant and equipment Add: Equipment payable at the beginning of the period Less: Equipment payable at the end of the period Less: Provision for liabilities - non-current added during the period Cash paid during the period 2. Not affect Cash flow from Cash dividends announced but unpaid	January 1 to September 30, 2021 $ 104,893 42,262 ( 13,935) ( 1,724) $ 131,496 financing activities January 1 to September 30,2021 $ 138,069	January 1 to September	January 1 to September	$ ( (	January 1 to June 30,	January 1 to June 30,
				$
				$
			30,2021 138,069			2020 ­

~40~

(XXV) Changes in liabilities arising from financing activities

January 1 Changes in cash flows from financing activities September 30	2021 Lease liabilities Short-term borrowings and bills payable Long-term borrowings (including portions due within one year or one operatingcycle) Total liabilities from financing activities	2021 Lease liabilities Short-term borrowings and bills payable Long-term borrowings (including portions due within one year or one operatingcycle) Total liabilities from financing activities	2021 Lease liabilities Short-term borrowings and bills payable Long-term borrowings (including portions due within one year or one operatingcycle) Total liabilities from financing activities	2021 Lease liabilities Short-term borrowings and bills payable Long-term borrowings (including portions due within one year or one operatingcycle) Total liabilities from financing activities	2021 Lease liabilities Short-term borrowings and bills payable Long-term borrowings (including portions due within one year or one operatingcycle) Total liabilities from financing activities
		$ 77,848 ( 39,643) $ 38,205	$ 144,300 ( 62,200) $ 82,100	$ 227,214 78,812 $ 306,026	$ 449,362 ( 23,031) $ 426,331

2020

	2020	2020	2020	2020	2020	2020	2020	2020
January 1 Changes in cash flows from financing activities Other non-cash transactions September 30	Lease liabilities Short-term borrowings and bills payable Long-term borrowings (including portions due within one year or one operatingcycle) Total liabilities from financing activities
		$ 126,946 ( 39,490) 10,177 $ 97,633	$ 94,600 64,900 ­ $ 159,500		$ 91,217 143,886 ­ $ 235,103		$ 312,763 169,296 10,177
								10,177
							$ 492,236

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	July 1 to	July 1 to	September 30, 2021 5,174 311 5,485	July 1 to	July 1 to	September 30,
		$			$	2020 6,852 273
		$			$	7,125

~41~

Short-term employee benefits Post-employment benefits Total	January 1 to September 30, 2021 $ 16,955 824 $ 17,779	January 1 to September 30, 2021 $ 16,955 824 $ 17,779	January 1 to September 30, 2020 $ 19,262 820 $ 20,082	January 1 to September 30, 2020 $ 19,262 820 $ 20,082	January 1 to September 30, 2020 $ 19,262 820 $ 20,082
		$ $		$
				$	20,082

VIII. Pledged assets

Pledged assets
Refundable deposits (time deposits) Refundable deposits (time deposits) Refundable deposits (time deposits) Other financial assets - non-current Other Equipment		September 30, 2021 $ 2,850 36,121 18,316 2,300 318,744		December 31, 2020 September 30, 2020 $ 2,400 $ 8,421 36,118 43,866 13,771 - - - 130,805 133,063 $ 183,094 $ 185,350		September 30,		Purpose Customs duty Lease deposits Performance guarantee deposits Long-term borrowings Long-term borrowings
		$		$			2020 8,421 43,866 - - 133,063 185,350
		$	378,331	$	183,094 $

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	September 30, 2021 $ 192,413	September 30,	September 30,	$	December 31,	December 31,	September 30, 2020 $ 122,185	September 30, 2020 $ 122,185
			2021 192,413			2020 110,739		2020 122,185

X. Losses due to major disasters

Not applicable.

XI. Significant events after the balance sheet date

Not applicable.

~42~

XII. Others

(I) Capital management

There were no significant changes during the period. Please refer to Note 12 of the Notes to Consolidated Financial Statements as of and for the year ended December 31, 2020.

(II) Financial instruments

1. Categories of financial instruments

		September 2021	30,	December 31,	December 31,	December 31,	2020	September 30,	2020
Financial asset
Financial assets at fair value
through profit and loss
Financial assets
mandatorily measured at fair
value through profit or loss	$	84,546		$	67,074			$ 64,485
Financial assets at fair value
through other comprehensive
income
Investments in designated equity instrument	$	34,390		$	42,980			$ 37,221
Financial assets measured at amortized cost
Cash and cash equivalents	$	144,749		$	142,716			$ 135,427
Other financial assets - current		16,124			16,489			16,849
Note receivable		239				244		-
Trade receivable		45,110			45,164			36,026
Other receivables		-				1,960		-
Other financial assets - non-current		2,300				-		-
Refundable deposits		61,678			58,896			57,750
	$	270,200		$	265,469			$ 246,052
		September		30,	December 31,			September 30,
		2021				2020		2020
Financial liability
Financial assets measured at amortized cost
Short-term borrowings		$	63,100		$		98,800	$ 141,000
Short-term bills payable			19,000				45,500		18,500
Notes payable			1,758				6,881		1,344
Other payables			178,137				76,996		54,984
Long-term borrowings			306,026			227,214		235,103
(including portions due within
one year or one operating cycle)
Guarantee deposits received			6,450				6,450		6,850
		$	574,471		$	461,841		$ 457,781
Lease liabilities		$	38,205		$		77,848	$	97,633

~43~

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	Foreign currency (Thousands	Exchange rate 27.800 27.800	Carrying	Carrying	Carrying
						Change range 1% 1%
				amount (NTD) $16,319 $246,915
		of NTD) $587 $8,882

~44~

December 31, 2020

Financial asset Monetary items USD: NTD Non-monetary items USD: NTD Financial asset Monetary items USD: NTD Non-monetary items USD: NTD	Foreign currency (Thousands	Foreign currency (Thousands	Exchange rate 28.42 28.43 Exchange rate 29.05 29.05	Carrying	Carrying	Carrying
	of NTD) $586 $8,813 Foreign currency (Thousands
						Change range 1% 1%
				amount (NTD) $17,023 $254,860
		of NTD) $586 $8,773

• C. The total amount of exchange losses (both realized and unrealized) recognized from July 1 to September 30, 2021 and 2020,January 1 to September 30,2021 and 、 、

• 2020 was $8 $570 $1,202 and $2,791, respectively, due to the significant impact of exchange rate fluctuations on the 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 Group invests mainly in equity instruments and beneficiary certificates that are not listed on TWSE or TPEx. 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 January 1 to September 30, 2021 and 2020, the Group's borrowings based on floating interest rate were denominated in NTD.

~45~

• 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 September 30, 2021, December 31, 2020 and September 30, 2020, if the interest rate on borrowings had increased by 1%, net profits after tax would have decreased by $1,519 and $3,157 for January 1 to September 30, 2021 and 2020, with all other factors held constant, primarily due to the increase in interest expense as a result of floating rate borrowings.

• (4) Credit risk

• A. The 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 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. The cash and cash equivalents have been assessed to be free of material 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 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 September 30, 2021, December 31, 2020 and September 30, 2020.

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

• G. The Group's allowance for losses on accounts receivable on a simplified basis has not changed from January 1 to September 30, 2021 and 2020, and the allowance for losses on accounts receivable was $0 as of September 30, 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 schedule shows the Group's non-derivative financial liabilities, grouped by the relevant maturity date. Non-derivative financial liabilities 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 schedule below are undiscounted amounts.

~46~

Non-derivative financial liabilities:

Non-derivative financial liabilities:
September 30, 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 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 Non-derivative financial liabilities: September 30, 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 $ 63,365 19,051 1,758 178,137 34,218 - 68,762 $ 365,291 than 1 year $ 99,051 45,566 6,881 76,996 58,941 - 58,560 $ 345,995 than 1 year $ 141,000 18,500 1,344 54,984 58,546 - 46,644 $ 321,018	Less than 1 to 2 years $ - - - - 3,285 - 76,572 $ 79,857 Less than 1 to 2 years $ - - - - 21,294 - 52,697 $ 73,991 Less than 1 to 2 years $ - - - - 35,201 - 56,047 $ 91,248	More than 2 years $ - - - - 2,547 6,450 175,838 $ 184,835 More than 2 years $ - - - - 3,968 6,450 124,822 $ 135,240 More than 2 years $ - - - - 4,789 6,850 142,367 $ 154,006
	Less
	Less

~47~

(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 nonlisted stocks belong to this.

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.

September 30, 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 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 1 $ - - $-	Level 2 $ - - $- Level 2 $ - - $-	Level 3 $ 84,546 34,390 $118,936 Level 3 $ 67,074 42,980 $110,054		Total $ 84,546 34,390 $118,936 Total $ 67,074 42,980	Total $ 84,546 34,390 $118,936 Total $ 67,074 42,980
						$110,054

~48~

September 30, 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 $ - - $-	Level 3 $64,485 37,221 $101,706	Total $ 64,485 37,221 $101,706

1. The following schedule shows the changes in Level 3 for January 1 to September 30, 2021 and 2020.

January 1 Gain recognized in profit or loss Loss recognized in other comprehensive Income Purchase in the period Refund of share price due to capital deduction during the period September 30	2021 2020 Non-derivative equity security Non-derivative equity security $ 110,054 $ 80,439 ( 1,554) 2,765 ( 5,171) ( 3,125) 28,141 29,288 ( 12,534) ( 7,661) $ 118,936 $ 101,706	2021 2020 Non-derivative equity security Non-derivative equity security $ 110,054 $ 80,439 ( 1,554) 2,765 ( 5,171) ( 3,125) 28,141 29,288 ( 12,534) ( 7,661) $ 118,936 $ 101,706

1. For January 1 to September 30, 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 valuation results are reasonable. performing back-testing, updating input values used to

~49~

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.

September 30, 2021 Fair value Valuation technique Significant unobservable input value Non-derivative equity security: Non TWSE or TPEx listed stock $ 5,140 Discounted benefit flow method Discount for lack of marketability Adjustment to discount for lack of controlling interests Venture capital company stock $ 29,250 Net asset value method Net asset value Investment in private equity 84,546 Net asset value method Net asset value	Interval (Weighted	Interval (Weighted	Relationship between input value
		average) and fair value 20% The higher the discount for lack of marketability and the higher the discount for lack of controlling interests, the lower the fair value 30% - The higher the net asset value, the higher the fair value - The higher the net asset value, the higher the fair value

December 31, 2020 Fair value Valuation technique Significant unobservable input value Interval (Weighted average) Non-derivative equity security: Non TWSE or TPEx listed company 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

~50~

September 30, 2020 Fair value Valuation technique Significant unobservable input value Interval (Weighted average) Non-derivative equity security: Non TWSE or TPEx listed company Stock $ 10,169 Discounted benefit flow method Discount for lack of marketability 20% Adjustment to discount for lack of controlling interests 30% Venture capital company stock $ 27,052 Net asset value method Net asset value Investment in private equity 64,485 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

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.

Financial asset Equity instruments Equity instruments Investment in private equity Total	Input value Change	$	Recognized Favorable change - - 845 845	Recognized	September 30, 2021 in profit or loss Recognized in other comprehensive Income Unfavorable change Favorable change Unfavorable change $ - $ 51 ($ 51) - 293 ( 293) ( 845) - - ($ 845) $ 344 ($ 344)	September 30, 2021 in profit or loss Recognized in other comprehensive Income Unfavorable change Favorable change Unfavorable change $ - $ 51 ($ 51) - 293 ( 293) ( 845) - - ($ 845) $ 344 ($ 344)
					$ (
	The discount for lack of marketabilit y and the discount for lack of controlling interests ±1% Net asset value ±1% Net asset value ±1%
		$			($

~51~

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

Financial asset Equity instruments Equity instruments Investment in private equity Total	Input value Change	$	Recognized Favorable change - - 645 645	Recognized	September 30, 2020 in profit or loss Recognized in other comprehensive Income Unfavorable change Favorable change Unfavorable change $ - $ 102 ($ 102) - 271 ( 271) ( 645) - - ($ 645) $ 373 ($ 373)	September 30, 2020 in profit or loss Recognized in other comprehensive Income Unfavorable change Favorable change Unfavorable change $ - $ 102 ($ 102) - 271 ( 271) ( 645) - - ($ 645) $ 373 ($ 373)
					$ (
	The discount for lack of marketabilit y and the discount for lack of controlling interests ±1% Net asset value ±1% Net asset value ±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.

4. Marketable securities acquired and disposed amounting to at least NT$300 million or 20%

~52~

of the paid-in capital. None.

1. Acquisition of individual real estate amounting to at least NT$300 million or 20% of the paid-in capital: None

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

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

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

5. Engagements in derivative financial instruments transactions: None.

6. 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 January 1 to September 30, 2021 and 2020 is as follows.

~53~

January 1 to September 30, 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	Oil and chemical tank	Solar power generation business $ 72,859 $ 21,280 32,690 5 880 4,713	Total 365,361 64,222 131,845 204 1,661 16,922
		rental business $ 292,502 42,942 99,155 199 781 12,209

January 1 to September Oil and chemical tank rental business Segment revenues $ 332,166 Segment profits or losses (Note) 106,646 Segment profits or losses include: Depreciation and amortization 90,020 Interest income 284 Financial costs 1,536 Income tax expense 10,881	January 1 to September	30,

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

~54~

Prime Oil Chemical Service Corporation and its subsidiaries

Provision of endorsements and guarantees to others

January 1 to September 30, 2021

Table 1

Unit: Thousand NTD

(Unless otherwise specified)

		Party	being endorsed/	being endorsed/						Percentage of
			guaranteed		Limit on	Balance of				accumulated	Ceiling on total			Endorsement
				Relationship	endorsements/	maximum	Balance of			endorsement/	amount of	Endorsement	Endorsement	and guarantee
	Name of the			with the	guarantees	endorsement and	endorsement and		Amount of	guarantee amount	endorsements/	and guarantee	and guarantee	for party in
	company providing			endorser/	provided for a	guarantee for the	guarantee at the	Transaction	endorsement	to net asset value of	guarantees	by parent tor	by subsidiary	Mainland
Serial No.	endorsement and			guarantor	single party	period	end of the period	Amounts	and guarantee	the endorser/	provided	subsidiary	tor parent	China (Note	Remark
(Note 1)	guarantee	Companyname		(Note 2)	(Note 3)	(Note 4)	(Note 5)	(Note 6)	by property	guarantor company	(Note 3)	(Note 7)	(Note 7)	7)	s
0	Prime Oil Chemical Service Corporation POCS Co., Ltd.		Power	2	$ 382,201	$ 250,000	$ 250,000	$ 250,000	$ -	26.2%	$ 429,976	Y	N	N

Note 1: The description of the number column is as follows.

• (1) Issuer fills in 0.

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

Note 2: There are six types of relationships between the endorser/ guarantor and the endorsee/ guarantee, and just indicate the types:

• (1) Companies that have business dealings

• (2). Subsidiaries in which the Company directly holds more than 50% of the common stock.

• (3) The other company directly or indirectly holds more than 50% of the voting shares of the Company.

• (4) The Company directly or indirectly holds more than 90% of the voting shares of the other company.

• (5) Mutual guarantee of the trade or joint proprietor as required by the construction contract.

• (6) Due to joint venture, each shareholder provides endorsements/ guarantees to the endorsed/ guaranteed company in proportion to its ownership.

• (7) Industry peers provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

• Note 3: According to the Company's operating procedures for endorsement and guarantee, the total amount of external guarantee is limited to 45% of the Company's net worth, and the amount of endorsement and guarantee for a single enterprise is limited to 40% of the Company's net worth.

Note 4: The maximum balance of endorsement and guarantee for others during the year.

Note 5: As of the end of the year, the Company assumes the responsibility of endorsement or guarantee when it enters an endorsement and guarantee contract with banks or when a line of credit for notes is approved; In addition, other matters involving endorsement or guarantee should be included in the balance of the endorsement or guarantee.

Note 6: Fill in the actual amount of endorsements/ guarantees used by the endorsed/ guaranteed company.

Note 7: Fill in Y for endorsement and guarantee by listed parent for subsidiary, by subsidiary for listed parent, or for party in Mainland China

Table 1, Page 1

Prime Oil Chemical Service Corporation and its subsidiaries

Marketable securities held at the end of the period (excluding investment in subsidiaries, affiliated companies and joint venture)

September 30, 2021

				September 30, 2021
Table 2										Unit: Thousand NTD
										(Unless otherwise specified)
			Relationship with the					The end of the	period
			issuer of marketable
Companies held		Type and name of marketable securities	securities	Account in the book	Shares		Carryingamount		Shares Ratio	Fair value	Remarks
Prime Oil Chemical Service Corporation	Stock	- Everterminal Co., Ltd.	None	Financial assets at fair value through other comprehensive income - noncurrent	342,244			$ 5,140	0.70%	$ 5,140
Prime Oil Chemical Service Corporation	Stock	- Athena Capital Co., Ltd.	None	Financial assets at fair value through other comprehensive income - noncurrent	3,000,000			29,250	16.16%	29,250
Prime Oil Chemical Service Corporation	Investment in private equity - AB Value Bridge VI, L.P.		None	Financial assets at fair value through profit or loss - non-current		-		65,721	3.00%	65,721
Prime Oil Chemical Service Corporation	Investment in private equity - AB Value Bridge VII, L.P.		None	Financial assets at fair value through profit or loss - non-current		-		18,825	3.90%	18,825

Table 2, Page 1

Table 3

Prime Oil Chemical Service Corporation and its subsidiaries

Names, locations and other information of investee companies (not including investees in China)

January 1 to September 30, 2021

Unit: Thousand NTD

(Unless otherwise specified)

Investor Investor Company Location Main Businesses and Products Prime Oil Chemical Service Corporation He Zhen Feng Co., Ltd. Taiwan Real Estate Leasing Prime Oil Chemical Service Corporation POCS Power Co., Ltd. Taiwan Solar Power Industry Prime Oil Chemical Service Corporation Prime Holdings Corporation Anquila Shareholding and General Trading Prime Holdings Corporation Prime Solar Energy Co., Ltd. Cambodia Real Estate Development

Investment Amount As of September 30,2021 Net profit (Loss) of the Investee for the period Investment gains or losses recognized in the period Rema rks September 30,2021 September 30,2020 Shares Owners hip Carrying amount $ 695 $ 695 69,468 69.47 $ 1,100 ($ 19) ($ 13) 40,000 40,000 4,000,000 100.00 46,596 1,4731,473 191,886 191,886 6,298,770 100.00 246,915 2,4972,497 Note 52,344 52,344 1,700,000 100.00 47,145 ( 45) ( 45)Note

Note: The information disclosed in respect of the investee enterprises is based on the exchange rate at September 30, 2021, except for the profit or loss for the period, which is based on the average exchange rate from January 1, 2021 to September 30, 2021.

Table 3, Page 1

Prime Oil Chemical Service Corporation and its subsidiaries

Information on main investors

September 30, 2021

Table 4 Abacus Display Infinity Corporation Tai Yu Investment Co., Ltd.	Name of major shareholder	No. of shares held 26,593,949 4,433,345	Shares	Shares Ratio 38.52% 6.42%

Table 4, Page 1