RADIUM — Annual Report 2021

Nov 15, 2021

Stock Code: 2547

Radium Life Tech Co., Ltd.

Parent Company Only Financial Statements for the Years Ended December 31, 2021 and 2020 and Independent Auditors’ Report

Address: 14F, No. 209, Section 1, Civic Boulevard, Datong District, Taipei City TEL: (02)77338888

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Independent Auditor’s Report

The Board of Directors and Shareholders

Radium Life Tech Co., Ltd.,

Opinion

We have audited the accompanying parent company only balance sheet of Radium Life Tech Co., Ltd. (the “Company”) as of December 31, 2021 and 2020, and the relevant parent company only statements of comprehensive income, changes in equity and cash flows for the years then ended, and relevant notes to the parent company only financial statements, including a summary of significant accounting policies.

In our opinion, the accompanying parent company only financial statements present fairly, in all material respects, the accompanying parent company only financial position of the Company as of December 31, 2021 and 2020, and its parent company only financial performance and its parent company only cash flows for the years then ended in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers. Basis for opinion

We conducted our audits in accordance with the Regulations Governing Auditing and Attestation of Financial Statements by Certified Public Accountants and auditing standards generally accepted in the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Parent Company Only Financial Statements section of our report. We are independent of the Company in accordance with the Norm of Professional Ethics for Certified Public Accountant of the Republic of China, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the parent company only financial statements for the year ended December 31, 2021. These matters were addressed in the context of our audit of the parent company only financial statements as a whole, and in forming our opinion thereon, we do not provide a separate opinion on these matters.

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Key audit matters for the Company’s parent company only financial statements for the year ended December 31, 2021 are stated as follows:

Valuation of property inventories

As shown in Note 12 to the parent company only financial statements, as of December 31, 2021, the property in the inventory category of the parent company only balance sheet (including property under development, property to be developed, and buildings and land held for sale) totaled NT$6,754,823 thousand, accounting for 20% of the parent company only total assets; therefore, it is material. As the allowance for inventory valuation loss of relevant property involves significant judgments on accounting estimates and other important judgments by the management, the relevant details are as described in Note 5 to the parent company only financial statements, so we have listed it as a key audit matter.

• The audit procedures performed by us for the valuation of property inventories include:

• The amount of property under development recognized is NT$1,224,506 thousand, accounting for about 18% of the total inventories. We have obtained relevant information on the estimated remaining cost of the property under development, and sampled the basis for such estimates; calculated the expected total revenue based on the recent transaction prices near the property under development from a selling price disclosure website, and compared them with the sum of the property under development and the estimated remaining investment costs recognized in the account.

• The portion of the property to be developed and the buildings and land held for sale recognized is NT$5,530,317 thousand, which accounts for about 82% of the total inventories, and we have obtained the net realizable value and impairment assessment data calculated by the Company for the above-mentioned property inventories and reviewed whether the assessment results were reasonable.

Responsibilities of Management and Those Charged with Governance for the Parent Company Only financial

statements

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

In preparing the parent company only financial statements, management is responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance (including the Audit Committee) are responsible for overseeing the Company’s financial reporting process.

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Auditor's Responsibilities for the Audit of the Parent Company Only Financial Statements

Our objectives are to obtain reasonable assurance about whether the parent company only financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high-level assurance but is not a guarantee that an audit conducted in accordance with the auditing standards generally accepted in the Republic of China will always detect a material misstatement when it exists. Misstatement can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of the users taken on the basis of these parent company only financial statements.

As part of an audit in accordance with the generally accepted auditing standards in the Republic of China, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

1. Identify and assess the risks of material misstatement of the parent company only financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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

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

4. Conclude on the appropriateness of the management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the parent company only financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Company to cease to continue as a going concern.

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

6. Obtain sufficient and appropriate audit evidence regarding the financial information of the entities or business activities within the Company to express an opinion on the parent company only financial statements. We are responsible for the direction, supervision, and performance of the group audit. We remain solely responsible for our audit opinion.

We communicated with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identified during our audit.

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We also provided those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicated with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.

From the matters communicated with those charged with governance, we determined those matters that were of most significance in the audit of parent company only financial statements for the year ended December 31, 2021 and are therefore the key audit matters. We describe these matters in our auditors' report unless law or regulations precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

The engagement partners on the audit resulting in this independent auditors’ report are Yang, ChingCheng and Fang, Alice.

Yang, ChingCheng Fang, Alice

Deloitte & Touche Taipei, Taiwan Republic of China March 29, 2022

Notice to Readers

The accompanying parent company only financial statements are intended only to present the financial position, financial performance and cash flows in accordance with accounting principles and practices generally accepted in the Republic of China and not those of any other jurisdictions. The standards, procedures and practices to audit such parent company only financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying parent company only

financial statements have been translated into English from the original Chinese version prepared and used in the Republic of China. If there is any conflict between the English version and the original Chinese version or any difference in the interpretation of the two versions, the Chinese-language independent auditors’ report and parent company only financial statements shall prevail.

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Radium Life Tech Co., Ltd.

PARENT COMPANY ONLY BALANCE SHEETS

DECEMBER 31, 2021 and 2020

(In Thousands of New Taiwan Dollars)

ASSETS Current assets Cash and cash equivalents (Notes 4 & 6) Financial assets at fair value through profit or loss - current (Notes 4 & 7) Financial assets at amortized cost - current (Notes 4, 9, 21 & 29) Notes receivable, net (Notes 4, 10 & 21) Trade receivables, net (Notes 4, 10, 21 & 24) Trade receivables from related parties, net (Notes 4 & 28) Finance lease receivables, net (Notes 4 & 11) Other receivables (Note 4) Other receivables from related parties (Note 28) Current tax assets (Note 4) Inventories (Notes 4, 5, 12, 21, 28 & 29) Prepayments (Notes 13 & 29) Refundable deposits -current (Note 21) Other current assets (Note 13) Incremental costs of obtaining contracts (Notes 21 & 24) Total current assets Non-current assets Financial assets at fair value through other comprehensive income - non-current (Notes 4 & 8) Financial assets at amortized cost - non-current (Notes 4, 9 & 29) Investments accounted for using equity method (Notes 4, 14 & 29) Property, plant and equipment (Notes 4, 15 & 29) Right-of-use assets (Notes 4 and 16) Investment properties, net (Notes 4, 17 & 29) Intangible assets (Note 4) Refundable deposits - non-current Finance lease receivables - non-current, net (Notes 4 & 11) Total non-current assets TOTAL LIABILITIES AND EQUITY Current liabilities (Note 21) Short-term borrowings (Notes 18 & 29) Short-term bills payable (Notes 18 & 29) Contract liabilities - current (Notes 4, 21, 24 & 28) Notes payable Trade payables Trade payables to related parties (Note 28) Other payables Other payables to related parties (Note 28) Current tax liabilities Lease liabilities - current (Notes 4 ,16 & 28) Current portion of bonds payable (Notes 19 & 29) Current portion of long-term borrowings (Notes 18, 21 & 29) Other current liabilities (Note 21) Total current liabilities Non-current liabilities Bonds payable (Note 19) Long-term borrowings (Notes 18 & 29) Provisions - non-current (Notes 4 & 20) Lease liabilities - non-current (Notes 4 ,16 & 28) Net defined benefit liabilities - non-current (Notes 4 and 22) Guarantee deposits received Total non-current liabilities Total liabilities Equity (Note 23) Share capital Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Total other equity Treasury shares Total equity TOTAL		December 31,2021		％ 1 - 2 - - - - - - - 20 - 1 - - 24 - 5 52 - - 19 - - - 76 100 4 4 1 - - 1 4 1 - - 5 18 - 38 13 16 1 - - - 30 68 26 4 1 - 1 2 - - 32 100		December 31,2020
		Amount $ 429,895 8,694 662,511 47 28,672 5,401 27,282 12,420 446 - 6,754,823 143,604 225,387 5,093 31,598 8,335,873 5,100 1,679,170 17,844,056 109,151 24,443 6,387,634 13,521 20,875 20,720 26,104,670 $ 34,440,543 $ 1,415,564 1,364,604 228,169 3,317 24,081 318,726 1,368,601 381,288 32 115,744 1,500,000 6,193,247 45,208 12,958,581 4,500,000 5,455,097 255,642 78,394 7,243 19,253 10,315,629 23,274,210 9,000,946 1,307,843 282,922 1,389 613,530 897,841 1,545) 38,752) 11,166,333 $ 34,440,543				Amount $ 1,267,661 2,969 8,424 - 30,426 5,250 22,193 11,756 275 3,761 7,529,522 136,396 190,854 4,081 - 9,213,568 5,100 2,248,075 17,392,981 109,474 3,441 6,631,013 7,186 21,001 45,284 26,463,555 $ 35,677,123 $ 2,494,605 - 51,569 - 42,135 306,597 1,517,572 630,568 863 104,663 - 1,434,443 56,079 6,639,094 5,500,000 11,379,405 257,370 172,011 8,660 17,446 17,334,892 23,973,986 9,000,946 1,307,843 220,659 3,334 1,170,269 1,394,262 86 - 11,703,137 $ 35,677,123		％
	( (							4 - - - - - - - - - 21 - 1 - - 26 - 6 49 - - 19 - - - 74 100 7 - - - - 1 4 2 - 1 - 4 - 19 15 32 1 - - - 48 67 25 4 1 - 3 4 - - 33 100

The accompanying notes are an integral part of the parent company only financial statements.

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Radium Life Tech Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

(In Thousands of New Taiwan Dollars, Except Earnings Per Share)

TOTAL OPERATION REVENUE (Notes 4, 24 & 28) TOTAL OPERATING COSTS(Notes 4, 12 & 25) GROSS PROFIT OPERATING EXPENSES(Note 25 & 28) Selling and marketing expenses General and administrative expenses Total operating expenses LOSS FROM OPERATIONS NON-OPERATING INCOME AND EXPENSES (Notes 25 & 28) Interest income Other income Other gains and losses Finance costs Share of profit or loss of subsidiaries, associates and joint ventures accounted for using equity method Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE(Notes 4 & 26) NET PROFIT FOR THE YEAR Other comprehensive income/(loss) Items that will not be reclassified subsequently to profit or loss Remeasurement of defined benefit plans		2021		％ 100 83) 17 12 ) 41) 53) 36) - 3 2 ) 25 ) 64 40 4 - 4 -		2020		％ 100 82) 18 15 ) 32) 47) 29) - 34 2 ) 19 ) 47 60 31 1) 30 - (Continued)
		Amount $ 1,423,108 1,175,761) 247,347 168,844 ) 581,811) 750,655) 503,308) 2,976 38,435 31,490 ) 352,811 ) 908,668 565,778 62,470 2,127) 60,343 924				Amount $ 2,115,392 1,735,482) 379,910 310,674 ) 681,612) 992,286) 612,376) 3,532 713,404 50,550 ) 406,979 ) 996,072 1,255,479 643,103 20,415) 622,688 185
	( ( ( ( ( ( ( (		( ( ( ( ( ( (		( ( ( ( ( ( ( (		( ( ( ( ( ( ( (

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Remeasurement of defined benefit plans, associates and joint ventures accounted for using equity method Unrealized gain/(loss) on investments in equity instruments measured at fair value through other comprehensive income, associates and joint ventures accounted for using equity method Items that may be reclassified subsequently to profit or loss Exchange differences on translating the financial statements of foreign operations Other comprehensive income for the year, net of income tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR EARNINGS PER SHARE (Note 27) Basic Diluted		2021		％ - - - - 4		2020
		Amount $ 370 1,673 ) 42 337) $ 60,006 $ 0.07 $ 0.07				Amount $ 247 ) 3,365 55 3,358 $ 626,046 $ 0.69 $ 0.69		％
	( (				(			- - - - 30

The accompanying notes are an integral part of the parent company only financial statements.

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Radium Life Tech Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

(In Thousands of New Taiwan Dollars)

BALANCE AT JANUARY1, 2020 Appropriation of 2019 earnings Legal reserve appropriated Cash dividends distributed by the company Reversal of special reserve Net income in 2020 Other comprehensive income in 2020, net of income tax Total comprehensive income in 2020 Retirement of treasury share BALANCE AT DECEMBER31, 2020 Appropriation of 2020 earnings Legal reserve appropriated Cash dividends distributed by the company Reversal of special reserve Net income in 2021 Other comprehensive loss in 2021, net of income tax Total comprehensive income in 2021 Buy-back of ordinary shares BALANCE AT DECEMBER31, 2021		Share Capital OrdinaryShares $ 9,123,076 - - - - - - 122,130) 9,000,946 - - - - - - - $ 9,000,946		Capital Surplus $ 1,299,873 - - - - - - 7,970 1,307,843 - - - - - - - $ 1,307,843			Retained Earnings	Retained Earnings		Unappropriated Earnings $ 1,134,675 40,673 ) 547,385 ) 1,026 622,688 62) 622,626 - 1,170,269 62,263 ) 558,058 ) 1,945 60,343 1,294 61,637 - $ 613,530	Other Equity Exchange Differences on Translating the Financial Statements of Foreign Operations Unrealized Gain/(loss) on Financial Assets at Fair Value Through Other Comprehensive Income ( $ 1,444 ) ( $ 1,890 ) - - - - - - - - 55 3,365 55 3,365 - - ( 1,389 ) 1,475 - - - - - - - - 42 ( 1,673) 42 ( 1,673) - - ($ 1,347) ($ 198)	Other Equity Exchange Differences on Translating the Financial Statements of Foreign Operations Unrealized Gain/(loss) on Financial Assets at Fair Value Through Other Comprehensive Income ( $ 1,444 ) ( $ 1,890 ) - - - - - - - - 55 3,365 55 3,365 - - ( 1,389 ) 1,475 - - - - - - - - 42 ( 1,673) 42 ( 1,673) - - ($ 1,347) ($ 198)	TreasuryShares $ - - - - - - - - - - - - - - - ( 38,752) ($ 38,752)		Total Equity
											Exchange Differences on Translating the Financial Statements of Foreign Operations ( $ 1,444 ) - - - - 55 55 - ( 1,389 ) - - - - 42 42 - ($ 1,347)
						Legal Reserve $ 179,986 40,673 - - - - - - 220,659 62,263 - - - - - - $ 282,922		Special Reserve $ 4,360 - - 1,026 ) - - - - 3,334 - - 1,945 ) - - - - $ 1,389
	(						( (		( ( ( ( (		( ( (	( ( ( (	( (	( ( ( ( (	$ 11,738,636 - 547,385 ) - 622,688 3,358 626,046 114,160) 11,703,137 - 558,058 ) - 60,343 337) 60,006 38,752) $ 11,166,333

The accompanying notes are an integral part of the parent company only financial statements.

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Radium Life Tech Co., Ltd.

PARENT COMPANY ONLY STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITES Profit before income tax Adjustments for: Depreciation expenses Amortization expenses Net losses on financial assets or liabilities at fair value through profit or loss Interest expenses Interest income Share of profit of subsidiaries, associates, and joint ventures Reversal of impairment loss on non-financial assets Realized gain on transactions with subsidiaries, associates and joint ventures Other non-cash items Changes in operating assets and liabilities Financial assets mandatorily classified as at fair value through profit or loss Notes receivable Trade receivables Trade receivables from related parties Other receivables Other receivables from related parties Inventories Prepayments Other current assets Incremental costs of obtaining contracts Contract liabilities Notes payable Trade payables Trade payables to related parties Other payables Other payables to related parties Other current liabilities Other operating liabilities Cash generated from operations Interest received Interest paid Income tax refund (payment) Net cash inflow generated from operating activities		2021 $ 62,470 228,805 5,830 326 352,811 2,976 ) 908,668 ) 9,907 ) 2,738 ) 29,221 6,051 ) 47 ) 1,754 151 ) 27 171 ) 784,606 7,208 ) 1,012 ) 31,598 ) 176,600 3,317 18,054 ) 12,129 147,512 ) 720 10,729 ) 1,728) 510,066 2,285 347,357 ) 803 165,797		2020
	( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( ( ( ( (	$ 643,103 290,124 5,154 31 406,979 3,532 ) 996,072 ) 7,502 ) 5,026 ) 47,999 3,000 ) 2,528 93,858 2,061 80 274 ) 1,458,491 28,732 116,340 - 569,584 ) - 32,220 ) 744,292 ) 14,040 702 ) 38,146 ) 1,981) 707,189 2,975 395,099 ) 37,335 ) 277,730

(Continued)

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CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at amortized cost Acquisition of investments accounted for using equity method Net cash inflow on disposal of subsidiaries Payments for property, plant and equipment Increase in refundable deposits Decrease in refundable deposits Payments for intangible assets Proceeds from disposal of investment properties Decrease in finance lease receivables Dividends received from investments accounted for using equity method Net cash generated from investing activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from short-term bills payable Repayments of short-term bills payable Proceeds from issuance of bonds Repayments of long-term borrowings Proceeds from guarantee deposits received Increase in other payables to related parties Decrease in other payables to related parties Repayment of the principal portion of lease liabilities Dividends paid to owners of the Company Payments for transaction costs attributable to treasury shares Net cash used in financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE YEAR CASH AND CASH EQUIVALENTS AT THE END OF THE YEAR		2021 $ 85,182 ) 450,337 ) 12,572 4,772 ) 34,407 ) - 12,165 ) - 21,115 896,835 343,659 - 1,079,041 ) 1,364,604 - 500,000 1,172,417 ) 1,665 - 250,000 ) 115,223 ) 558,058 ) 38,752) 1,347,222) 837,766 ) 1,267,661 $ 429,895		2020
	( ( ( ( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( (	$ 1,185,731 ) 549,985 ) - 2,542 ) - 67,642 8,005 ) 2,363,428 17,731 468,660 1,171,198 1,179,120 - - 2,936,884 ) 3,000,000 1,420,293 ) 1,594 130,000 - 129,022 ) 547,385 ) 114,160) 837,030) 611,898 655,763 $ 1,267,661

The accompanying notes are an integral part of the parent company only financial statements.

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RADIUM LIFE TECH CO., LTD.

NOTES TO PARENT COMPANY ONLY FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2021 AND 2020

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

1. Organization and Operations

2. Radium Life Tech Co., Ltd. (the “Company”) was incorporated in the Republic of China on March 26, 1982, its main business includes:

3. (I) Commissioning construction companies to build public housing projects and commercial buildings for rental and sale.

4. (II) Commissioned by the industrial competent authorities of the government to engage in development, lease, sale, and management of industrial zones.

5. The Company’s shares have been listed on the Taiwan Stock Exchange (TWSE) since December 2000.

The parent company only financial statements are presented in New Taiwan Dollar, the Company’s functional currency.

1. Date and Procedures for Approval of the Financial Report

2. The parent company only financial statements were approved by the board of directors and authorized for release on March 29, 2022.

3. Application of Newly Issued and Amended Standards and Interpretations

4. (I) Initial application of the amendments to the International Financial Reporting Standards (IFRS), International Accounting Standards (IAS), IFRIC Interpretations (IFRIC), and SIC Interpretations (SIC) (collectively, the “IFRSs”) endorsed and issued into effect by the Financial Supervisory Commission (FSC).

   • The application of the amendments to the IFRSs endorsed and issued into effect by the FSC will not have a material impact on the Company’s accounting policies.

5. (II) The IFRSs endorsed by the Financial Supervisory Commission (FSC) for application starting from 2022

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

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• Note 1: The amendments to IFRS 9 will be applied prospectively to modifications and exchanges of financial liabilities that occur on or after the annual reporting periods beginning on or after January 1, 2022. The amendments to IAS 41 “Agriculture” will be applied prospectively to the fair value measurements on or after the annual reporting period beginning on or after January 1, 2022. The amendments to IFRS 1 “First-time Adoption of IFRSs” will be applied retrospectively for annual reporting period beginning on or after January 1, 2022.

• Note 2: The amendments are applicable to business combination for which the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022.

• Note 3: The amendments are applicable to property, plant and equipment that are brought to the location and condition necessary for them to be capable of operating in the manner intended by management on or after January 1, 2021.

• Note 4: The amendments are applicable to contracts for which the entity has not yet fulfilled all its obligations on January 1, 2022.

Except for the above impact, as of the date the parent company only financial statements were authorized for issue, the Company is continuously assessing the possible impact that the application of other standards and interpretations will have on the Company’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

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

New/Revised/Amended Standards and Interpretations Amendments to IFRS 10 and IAS 28 "Sale or Contribution of Assets between An Investor and Its Associate or Joint Venture” IFRS 17 “Insurance Contracts” Amendments to IFRS 17 Amendment to IFRS 17 “Initial Application of IFRS 9 and IFRS 17―Comparative Information” Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” Amendments to IAS 1 “Disclosure of Accounting Policies” Amendments to IAS 8 “Definition of Accounting Estimates” Amendment to IAS 12”Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

Effective Date Issued by IASB (Note 1)

To be determined by IASB January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 (Note 2) January 1, 2023 (Note 3) January 1, 2023 (Note 4)

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Note 1: Unless stated otherwise, the new/revised/amended standards and interpretations above are effective for annual reporting periods beginning on or after their respective effective dates.

• Note 2: The amendment will be applied prospectively for annual reporting period beginning on or after January 1, 2023.

• Note 3: The amendments are applicable to changes in accounting estimates and changes in accounting policies that occur on or after the beginning of the annual reporting period beginning on or after January 1, 2023.

• Note 4: Except for deferred taxes that will be recognized on January 1, 2022 for temporary differences associated with leases and decommissioning obligations, the amendments will be applied prospectively to transactions that occur on or after January 1, 2022.

Except for the above impact, as of the date the parent company only financial statements were authorized for issue, the Company is continuously assessing the possible impact that the application of other standards and interpretations will have on the Company’s financial position and financial performance and will disclose the relevant impact when the assessment is completed.

4. Summary of Significant Accounting Policies

(I) Statement of compliance

The parent company only financial statements have been prepared in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers.

(II) Basis of preparation

The parent company only financial statements have been prepared on the historical cost basis except for the financial instruments measured at fair value, and net defined benefit liabilities, which are measured at the present value of the defined benefit obligation less the fair value of plan assets.

The fair value measurements, which are grouped into Levels 1 to 3 based on the degree to which the fair value measurement inputs are observable and based on the significance of the inputs to the fair value measurement in its entirety, are described as follows:

• 1) Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities;

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• 2) Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for an asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and

• 3) Level 3 inputs are unobservable inputs for an asset or liability.

When the Company prepared the parent company only financial statements, it adopted equity method to account for its investments in subsidiaries. In order to enable the amounts of the profit or loss for the year, other comprehensive income, and equity for the year in the parent company only financial statements to be the same as the ones attributable to the owners of the Company in its consolidated financial statements, regarding the differences arising from accounting treatments between the parent company only basis and the consolidation basis, adjustments were made to the investments accounted for using the equity method, the share of profit or loss on subsidiaries, associates, and joint ventures using the equity method, the share of other comprehensive income of subsidiaries, associates, and joint ventures using the equity method, as well as relevant equity items, as appropriate, in the parent company only financial statements.

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

Current assets include:

• 1) Assets held primarily for the purpose of trading;

• 2) Assets expected to be realized within 12 months after the reporting period; and

• 3) Cash and cash equivalents unless the asset is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting period.

• Current liabilities include:

• 1) Liabilities held primarily for the purpose of trading;

• 2) Liabilities due to be settled within 12 months after the reporting period, even if an agreement to refinance, or to reschedule payments, on a long-term basis is completed after the reporting period and before the consolidated financial statements are authorized for issue; and

• 3) Liabilities for which the Group does not have an unconditional right to defer settlement for at least 12 months after the reporting period. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

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Assets and liabilities that are not classified as current are classified as non-

current.

As the Company is engaged in construction projects and commissioning of construction companies to build buildings or plants for sale, its operating cycle is longer than one year. Therefore, the assets and liabilities related to construction, building, and sales projects are classified with the operating cycle as the standard for current and non-current.

(IV)

Foreign currencies

When the Company’s financial statements are prepared, transactions in currencies other than the Company’s functional currency (i.e. foreign currencies) are recognized at the rates of exchange prevailing on the transaction dates.

At the end of each reporting period, monetary items denominated in foreign currencies are translated at the rates prevailing on that date. Exchange differences on monetary items arising from settlement or translation are recognized in profit or loss in the period in which they arise.

Non-monetary items measured at fair value that are denominated in foreign currencies are translated at the rates prevailing on the date when the fair value was determined. The resulting exchange difference is recognized in profit or loss. For items whose changes in fair value are recognized in other comprehensive income, the resulting exchange difference is recognized in other comprehensive income.

Non-monetary items measured at historical cost that are denominated in foreign currencies are translated at the rates of exchange prevailing on the transaction dates and are not retranslated.

When the parent company only financial statements are prepared, the assets and liabilities of the Company’s foreign operations (including subsidiaries, associates, joint ventures, or branches that operate in countries or adopt the functional currencies different from the Company) are translated into New Taiwan dollar at the rates of exchange prevailing at the end of each reporting period. Income and expense items are translated at the average exchange rates for the period. The resulting currency exchange differences are recognized in other comprehensive income.

Where the Company disposes of all the equity of a foreign operation, or disposes of part of the equity of the foreign operation’s subsidiary and loses control over it, or the retained interests after disposal of the foreign operation’s joint

arrangements or associates are a financial asset and treated based on the accounting

• 16 -

policies applicable to financial instruments, all accumulated exchange differences related to the foreign operation will be reclassified to profit or loss.

Where the partial disposal of a subsidiary of a foreign operation does not result in the loss of control, the accumulated exchange differences are included in the equity transaction in proportion for calculation, and are not recognized in profit or loss. In the case of any other partial disposal of a foreign operation, the accumulated exchange differences will be reclassified to profit or loss in proportion to the disposal.

(V)

Inventories

Inventories include property under development, property to be developed, and buildings and land held for sale. The value of inventories is determined based on the cost or net realizable value, whichever is lower. The comparison of the cost and net realizable value is based on individual items except for inventories of the same category. The net realizable value is the estimated selling price, less the estimated cost of completion and the estimated costs necessary to make the sale. The actual construction cost of the property inventories is reclassified to the annual operating costs in line with the recognition principle of property sales revenue.

For a contract where a land owner provides land for construction of buildings by a property developer in exchange for a certain percentage of the buildings, no exchange gains or loss is recognized if the buildings acquired are classified as properties held for sale. Revenue is recognized when the properties held for sale are sold to third parties.

(VI)

Investments in subsidiaries

The Company adopts the equity method to account for its investments in subsidiaries.

A subsidiary is an entity (including special purpose entity) that is controlled by the Company.

Under the equity method, investments are initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of its subsidiaries. In addition, changes in the Company's other equity interest of its subsidiaries are recognized based on its ownership percentage.

Changes in the Company’s ownership interests in subsidiaries that do not result in the Group losing control over the subsidiaries are accounted for as equity

• 17 -

transactions. Any difference between the carrying amount of an investment and the fair value of the consideration paid or received is recognized directly in equity.

When the Company’s share of losses on a subsidiary exceeds its equity in said subsidiary (which includes any carrying amount of the investment accounted for by the equity method and long-term equity that, in substance, forms part of the Company’s net investment in said subsidiary), the Company continues recognizing its share of further losses.

The amount of the acquisition cost in excess of the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes the business on the acquisition date is classified as goodwill, which is included in the book value of the investment and cannot be amortized. The amount of the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary that constitutes the business on the acquisition date in excess of the amount of the acquisition cost is classified as current income.

When the Company assesses the impairment, it considers the cash-generating unit as a whole in the financial statements and compares its recoverable amount with the carrying amount. If the recoverable amount of an asset increases subsequently, the reversal of the impairment loss shall be recognized in gains, but the carrying amount of the asset after the reversal of the impairment loss shall not exceed the carrying amount of the asset less amortization without impairment loss recognized. The impairment loss attributable to goodwill shall not be reversed in subsequent periods.

When the Company loses control over a subsidiary, it measures its remaining investment in said subsidiary based on the fair value on the day when the control is lost. The fair value of the remaining investment and the difference between any disposal price and the carrying amount of the investment on the day when the control is lost are recognized in profit or loss for the period. In addition, all amounts recognized in other comprehensive income related to said subsidiary are accounted for on the same basis as the one adopted for the Company's direct disposal of the relevant assets or liabilities.

The unrealized profit or loss on downstream transactions between the Company and its subsidiaries are eliminated in the parent company only financial statements. Profit or loss on downstream and lateral transactions between the Company and its

• 18 -

subsidiaries is recognized in the parent company only financial statements only to the extent that it does not affect the Company's interests in the subsidiaries.

(VII) Property, plant and equipment

Property, plant and equipment are initially recognized at cost and subsequently measured at cost less accumulated depreciation and accumulated impairment loss.

Property, plant and equipment under construction are recognized at cost less accumulated impairment loss. The cost shall include professional service expenses and the borrowing costs eligible for capitalization. Such assets are classified into appropriate property, plant and equipment categories upon completion and reaching the status of intended use, and the depreciation will begin.

Except for self-owned land, which is not depreciated, each significant

component of the remaining property, plant and equipment is depreciated separately on a straight-line basis within their useful lives. The Company conducts at least one annual review at the end of each year to assess the estimated useful life, residual value, and depreciation methods, and applies the effect of changes in applicable accounting estimates prospectively.

When derecognizing an item of property, plant and equipment, the difference between the net disposal proceeds and the carrying amount of the asset shall be recognized in loss or profit.

(VIII) Investment properties

Investment properties refers to properties held for the purpose of earning rents or capital appreciation or both (including properties and right-of-use assets thereof that meet the definition of investment properties and are in the process of construction). Investment properties also include land held for a currently undetermined future use.

Self-owned investment properties are initially measured at cost (including transaction cost), and subsequently measured at cost less accumulated depreciation and accumulated impairment losses.

The investment properties acquired through lease are initially measured at cost (including the originally measured amount of the lease liabilities, the lease payments paid before the lease commencement date, the original direct cost, and the estimated cost of restoring the underlying asset, less the lease incentives received), and subsequently measured at cost less accumulated depreciation and accumulated impairment losses, and the remeasurement of the lease liability is adjusted.

• 19 -

All investment properties are depreciated on a straight-line basis.

Investment properties under construction are recognized at the cost less the accumulated impairment losses. The cost shall include professional service expenses and the borrowing costs eligible for capitalization. Such assets begin to be depreciated when they reach the status of intended use.

Investment properties are reclassified to inventories based on the carrying amount at the time when they are planned to be sold and cease being leased out.

The properties recognized in inventories are reclassified to investment properties based on the carrying amount at the time of establishment of an operating lease for rental.

(IX)

When investment properties are derecognized, the difference between the net disposal price and the carrying amount of the asset is recognized in profit or loss. Intangible assets

The cost of computer software is mainly amortized on a straight-line basis over a period of 1 to 10 years.

(X)

Assets related to contract costs

The sales commission for property sales and the selling service fee paid to agents under exclusive sale agreements of the property held for sale only occur when any customer contract is closed, and the amount is recognized in the incremental cost of obtaining the contract within the recoverable amount and reclassified when the property is completed and transferred to the customer. However, for the incremental cost of obtaining a contract that is expected to be amortized within one year, the Company chose not to capitalize it.

(XI)

Impairment of assets related to property, plant and equipment, right-of-use assets, investment properties, intangible assets (excluding goodwill), and assets related to contract costs

The Company assesses if there are any signs of possible impairment in property, plant, and equipment as well as right-of-use, investment properties, and intangible assets (excluding goodwill) at the end of each reporting period. If there is any sign of impairment, an estimate is made of its recoverable amount. If it is not possible to determine the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit (CGU) to which the asset belongs. Corporate assets are allocated to the smallest CGUs on a reasonable and consistent basis.

• 20 -

Intangible assets with indefinite useful lives and not yet available for use are tested for impairment at least annually and whenever there is an indication that the assets may be impaired.

The recoverable amount is the fair value less cost of sales or its value in use, whichever is higher. If the recoverable amount of an individual asset or a CGU is lower than its carrying amount, the carrying amount is reduced to the recoverable amount, and the impairment loss is recognized in profit or loss.

The inventory, property, plant and equipment, and intangible assets related to customer contracts are first recognized as impairment in accordance with the inventory impairment standards and the standards above. Then, the carrying amount of the assets related to contract cost in excess of the expected amount of consideration received for the provision of the relevant goods or services less the direct relevant costs is recognized as an impairment loss. Subsequently, the carrying amount of the assets related to contract cost is included in the CGU to which they belong to perform impairment assessment of the CGU.

When the impairment loss is subsequently reversed, the carrying amount of the asset, the CGU, or the asset related to contract cost is increased to the revised recoverable amount, provided that the increased carrying amount shall not exceed the carrying amount (less amortization or depreciation) of the asset, CGU, or the asset related to contract cost which was not recognized in impairment loss in prior years; the reversal of the impairment loss is recognized in profit or loss.

(XII) Financial instruments

Financial assets and financial liabilities shall be recognized in the parent company only balance sheet when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities not at fair value through profit or loss are measured at fair value plus transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities. The transaction costs directly attributable to the acquisition or issuance of financial assets or financial liabilities at fair value through profit or loss is immediately recognized in profit or loss.

• 1) Financial assets

Regular trading of financial assets shall be recognized and derecognized in accordance with trade date accounting.

• 21 -

(1) Measurement types

Financial assets held by the Company are those measured at fair value through profit or loss (FVTPL) and at amortized cost, as well as investments in equity instruments measured at fair value through other comprehensive income (FVTOCI).

A. Financial assets at FVTPL

Financial assets at FVTPL are those mandatorily measured at FVTPL, including investments in equity instrument that the Company has not designated to measure at FVTOCI, and debt instruments that are not eligible to be classified as measured at amortized cost or at FVTOCI.

Financial assets measured at FVTPL are measured at fair value, and the gains or losses arising from remeasurement are recognized in profit or loss. Please refer to Note 32 for the method of determining the fair value.

B. Financial assets at amortized cost

When the Company's investments in financial assets meet the following two conditions simultaneously, they are classified as financial assets measured at amortized cost:

• a. Held under a certain business model, of which the objective is to collect contractual cash flows by holding the financial assets; and

• b. The cash flows on specific dates specified in the contractual terms are solely payments of the principal and interest on the principal amount outstanding.

After initial recognition, such assets (including cash and cash equivalents, notes receivable, trade receivables, other receivables measured at amortized cost, and refundable deposits) are measured at the amortized cost of the total carrying amount determined by the effective interest method less any impairment loss, and any foreign currency exchange gains or losses are recognized in profit or loss.

Except for the following two cases, interest revenue is calculated by multiplying the effective interest rate by the total carrying amount of financial assets:

• 22 -

• a. For purchased or originated credit-impaired financial asset, interest revenue is calculated by multiplying the credit-adjusted effective interest rate by the amortized cost of the financial asset.

• b. For financial asset that is not purchased or originated creditimpaired but subsequently becomes credit impaired, interest revenue is calculated by multiplying the effective interest rate from the next reporting period after the credit impairment by the amortized cost of the financial asset.

Cash equivalents include time deposits and short-term bills that are highly liquid and readily convertible into a fixed amount of cash at any time within 3 months from the date of acquisition while featuring little risk of value changes, which are used to meet short-term cash commitments

• C. Investments in equity instruments at FVTOCI

On initial recognition, the Company may make an irrevocable election to designate as at FVTOCI the investments in equity instruments that are not held for trading and the ones that are not recognized by an acquirer in a business combination or with the contingent consideration.

Investments in an equity instrument measured at FVTOCI are measured at fair value, and any subsequent fair value changes are recognized in other comprehensive income and accumulated in other equity. Upon disposal of investments, cumulative gain or loss is directly transferred to retained earnings and are not reclassified to profit or loss.

Dividends of investments in equity instruments measured at FVTOCI are recognized in profit or loss when the Company's right to receive dividends is established unless such dividends clearly represent the recovery of a part of the investment cost.

• (2) Impairment of financial assets and contract assets

The Company assesses the impairment loss of financial assets measured at amortized cost (including trade receivables), and contract assets based on the expected credit loss at the end of each reporting period.

• 23 -

Trade receivables and contract assets are recognized in loss allowance based on the lifetime expected credit losses (ECLs). Other financial assets are first assessed based on whether the credit risk has increased significantly since the initial recognition. If there is no significant increase in the risk, a loss allowance is recognized at an amount equal to 12-month ECLs.If the risks have increased significantly, a loss allowance is recognized at an amount equal to lifetime ECLs.

The ECLs refer to the weighted average credit loss with the risk of default as the weight. The 12-month ECLs represent the ECLs from possible defaults of a financial instrument within 12 months after the reporting date. The lifetime ECLs represent the ECLs from all possible defaults in a financial instrument over the expected life of a financial instrument.

For the purpose of internal credit risk management, the Company, without considering the collateral held, determines that the following situations represent defaults in the financial assets:

• A. Internal or external information indicates that it is impossible for the debtor to settle the debt.

• B. It is overdue for more than 90 days, unless there is reasonable and corroborative information showing that a default date postponed is more appropriate.

The Company recognizes an impairment loss for all financial assets with a corresponding downward adjustment to their carrying amount through a loss allowance account. However, the loss allowance for investment in debt instruments measured at FVTOCI is recognized in other comprehensive income without a downward adjustment to the carrying amount.

• (3) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash inflow from the financial asset expire or when it transfers the financial assets and substantially all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset at amortized cost in its entirety, the difference between the asset’s carrying amount and the consideration

• 24 -

received is recognized in profit or loss. When derecognizing an investment in equity instrument at FVTOC in its entirety, the cumulative profit or loss is transferred directly to retained earnings and is not reclassified to profit or loss.

• 2) Equity instruments

Debt and equity instruments issued by the Company are classified as either financial liabilities or equity in accordance with the substance of the contractual arrangements and the definitions of financial liabilities and equity instruments.

Equity instruments issued by the Company are recognized at the proceeds received, net of the cost of direct issue.

The repurchase of the Company’s own equity instruments is recognized in and deducted directly from equity. The purchase, sale, issuance, or cancellation of the Company’s own equity instruments is not recognized in profit or loss.

• 3) Financial liabilities

• (1) Subsequent measurement

All financial liabilities are measured at amortized cost in the effective interest method.

• (2) Derecognition of financial liabilities

The difference between the carrying amount of the financial liability derecognized and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognized in profit or loss.

(XIII) Provisions

The amount recognized in provision is based on the risk and uncertainty of the obligation, and is the best estimate of the expenditure required to settle the obligation at the end of each reporting period. The provisions are measured at the discounted value of the cash flow estimated to settle the obligation.

Warranty

The warranty obligation to ensure that products conform to the agreed specifications is based on the management's best estimate of the expenditure required to settle the Company’s obligation, and is recognized when relevant products are recognized in revenue.

• 25 -

(XIV) Revenue recognition

After the Company identifies its performance obligations in contracts with customers, it allocates the transaction price to each performance obligation in the contracts and recognizes revenue when performance obligations are satisfied.

Construction revenue

For the property sales within the normal business scope, the fixed transaction price is received in installments and recognized as a contract liability. After considering the major financial components, revenue is recognized when each property is completed and delivered to the buyer.

(XV) Leases

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

• 1) The Company as lessor

Where almost all the risks and rewards attached to the ownership of an asset are transferred to the lessee in lease terms, such leases are classified as finance leases. All other leases are classified as operating leases.

When the Company subleases the right-of-use assets, the right-of-use assets (not the underlying asset) are used to determine the classification of the sublease. However, if the main lease is a short-term lease for which the recognition exemption applies to the Company, the sublease is classified as an operating lease.

Under finance leases, lease payments include fixed payments, substantive fixed payments, and fines for lease termination that has been reflected in the lease term, less lease incentives that shall be paid. The net lease investment is measured by the sum of the present value of the lease payment receivable and the unguaranteed residual value plus the initial direct cost and presented as financial lease receivable. Finance lease income is allocated to each accounting period to reflect the fixed rate of return on the Company's net investment outstanding in respect of leases.

Under operating leases, lease payments less lease incentives are recognized in income on a straight-line basis over the relevant lease terms. The initial direct cost incurred in obtaining an operating lease is added to the carrying amount of the underlying asset and recognized as expenses on a

• 26 -

straight-line basis over the lease term. The lease negotiation with each lessee is handled as a new lease from the effective date of the lease modification.

The variable rent in a lease arrangement that is not dependent on the index or rate is recognized in income in the period in which it is incurred.

• 2) The Company as lessee

The Company recognizes right-of-use assets and lease liabilities for all leases at the commencement date of each lease, except for low value asset leases and short-term leases accounted for by applying a recognition exemption where lease payments are recognized as expenses on a straight-line basis over the lease terms.

A right-of-use asset is initially measured at cost (including the initial measured amount of lease liabilities, the amount of lease payments made to the lessor less lease incentives received prior to the inception of a lease, initial direct costs, and the estimated costs of restoring underlying assets), and subsequently measured at cost less accumulated depreciation and accumulated impairment and adjusted for any remeasurement of the lease liabilities. Rightof-use assets, except those that meet the definition of investment properties, are presented on a separate line in the parent company only balance sheets. For the recognition and measurement of right-of-use assets that meet the definition of investment properties, please refer to (VIII) for the accounting policies for investment properties.

Right-of-use assets are depreciated on a straight-line basis from the lease commencement date to the expiration of the useful life or the expiration of the lease term, whichever is earlier.

The lease liabilities are initially measured at the present value of the lease payment (including fixed payments, in-substance fixed payments, and fines for lease termination that has been reflected in the lease term, less lease incentives received). If the interest rate implicit in a lease can be easily determined, the lease payment is discounted at such an interest rate. If the interest rate cannot be easily determined, the lessee's incremental borrowing rate applies.

Subsequently, lease liabilities are measured at the amortized cost using the effective interest rate method, and interest expense is amortized over the lease term. If changes in the lease term, the expected payment under the residual value guarantee, the evaluation of the underlying asset purchase options, or the

• 27 -

index or rate used to determine the lease payment over the lease term lead to changes in future lease payments, the Company remeasure the lease liabilities with a corresponding adjustment to the right-of-use assets. However, if the carrying amount of the right-of-use assets has been reduced to zero, the remaining remeasurement amount is recognized in profit or loss. For lease modifications that are not treated as a separate lease, remeasurement of the lease liabilities due to the reduced scope of the lease is to reduce the right-ofuse assets, and to recognize the profit or loss of the partial or full termination of the lease; the remeasurement of the lease liabilities due to other modifications is to adjust the right-of-use assets. Lease liabilities are presented on a separate line in the parent company only balance sheets.

(XVI) Borrowing costs

Borrowing costs directly attributable to an acquisition, construction, or production of qualifying assets are added to the cost of said assets, until such time as the assets are substantially ready for their intended use or sale.

For specific borrowings, if the investment income earned by making a temporary investment before the capital expenditure that meets the requirements is incurred, it is deducted from the borrowing costs that meet the capitalization conditions.

Other than that which is stated above, all other borrowing costs are recognized in profit or loss in the period in which they are incurred.

(XVII) Employee benefits

• 1) Short-term employee benefits

Relevant liabilities for short-term employee benefits are measured by the non-discounted amount expected to be paid in exchange for employee services.

• 2) Retirement benefits

Payments to defined contribution retirement benefit plans are recognized as expenses when employees have rendered services entitling them to the contributions.

The defined benefit cost under the defined benefit retirement benefit plan (including service cost, net interest, and remeasurement) is calculated based on the projected unit credit method. The service cost (including the service costs for the current period and the past service cost) and the net interest on the net defined benefit liabilities (assets) are recognized in employee benefit expenses

• 28 -

as they occur. The remeasurement (including actuarial gains and losses, effect of changes in assets limits, and the return on plan assets, net of interest) is recognized in other comprehensive income and listed in retained earnings when it occurs, and will not be reclassified to profit or loss subsequently.

The net defined benefit liabilities (assets) are the deficit (surplus) of the defined benefit retirement benefit plan. The net defined benefit assets may not exceed the present value of any refunds from the plan or reductions in future contributions to the plan.

(XVIII) Income tax

The income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

According to the Income Tax Law in the ROC, an additional tax on unappropriated earnings is provided for in the year the shareholders approve to retain earnings.

Adjustments of prior years’ tax liabilities are added to or deducted from the current year’s tax provision.

• 2) Deferred tax

Deferred tax is calculated based on the temporary differences between the carrying amount of assets and liabilities and the corresponding tax bases used in the computation of taxable profit.

Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences and unused loss carryforwards to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. A previously unrecognized deferred tax asset is also reviewed at the end of each reporting period, and recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered .

• 29 -

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liabilities are settled or the assets are realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

• 3) Current and deferred tax

Current and deferred taxes are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity; in which case, the current and deferred taxes are recognized in other comprehensive income or directly in equity, respectively.

5. Critical Accounting Judgements and Key Sources of Estimation Uncertainty

In the application of the Company’s accounting policies, the management is required to make judgments, estimations, and assumptions about the relevant information that is not readily accessible from other sources based on historical experience and other relevant factors. Actual results may differ from these estimates.

The management will constantly review the estimates and basic assumptions. If a revision of an estimate only affects the current period, it shall be recognized in the period in which the revision occurs. If a revision of an accounting estimate affects the current period and future periods, it shall be recognized in the period in which the revision occurs and future periods.

Key Sources of Estimation Uncertainty

Inventories impairment

The net realizable value of inventories is the estimated selling price in the ordinary course of business, less the estimated cost of completion and the estimated costs necessary to make the sale. These estimates are based on current market conditions and historical sales experience in similar products. Changes in market conditions may materially affect the results of these estimates.

• 30 -

6. Cash and cash equivalents

Cash and cash equivalents
Cash Checking accounts and demand deposits Foreign currency deposits Financial assets at FVTPL Current Mandatorily measured at FVTPL Non-derivative financial assets Fund beneficiary certificates	December 31,2021 $ 1,496 419,773 8,626 $ 429,895 December31,2021 $ 8,694	December 31,2020
		$ 1,748 1,262,338 3,575 $ 1,267,661 December31,2020
			$ 2,969

7. Financial assets at FVTPL

Please refer to Note 25 for the gains or losses on financial assets at FVTPL.

8. Financial assets at FVTOCI

Investments in equity instruments at FVTOCI

Non-current Domestic unlisted shares	December 31,2021 $ 5,100	December 31,2020	December 31,2020
			$ 5,100

The Company invests in the above-mentioned unlisted stocks for medium- to longterm strategic purposes, and expects to make profits through long-term investments. The Company’s management believes that recognizing the short-term fluctuations in the fair value of such investments in profit or loss is not consistent with the aforementioned long-term investment plan. Therefore, the management elected to designate these investments in equity instruments as at FVTOCI.

9. Financial assets at amortized cost

Financial assets at amortized cost
Current Domestic investments Other financial assets Non-current Domestic investments Other financial assets	December 31,2021 $ 662,511 $ 1,679,170	December 31,2020
			$ 8,424 $ 2,248,075

• (I) Other financial assets are restricted assets, such as reserve accounts for bank deposits and trust account.

• (II) Please refer to Note 29 for information relating to investments in financial assets at amortized cost pledged.

• 31 -

10. Notes receivable and trade receivables

Notes receivable and trade receivables
Notes receivable At amortized cost Gross carrying amount Less: Loss allowance Trade receivables At amortized cost Gross carrying amount Less: Loss allowance Total	December31,2021 $ 47 - $ 47 $ 28,672 - $ 28,672	December31,2020
			$ - - $ - $ 30,426 - $ 30,426

When determining the recoverability of accounts receivable, the Company considers the changes in the credit quality of trade receivables during the period from the original credit date to the time it is presented in the balance sheet. Based on the historical experience, except for the counterparty of a transaction is any government agency or bank credit card center with great credit quality, in principle, the Company adopts individual evaluation and a simplified approach as in IFRS 9 to recognize loss allowance for trade receivables based on the lifetime expected credit losses. The lifetime expected credit losses are based on each customer’s past default history, current financial position, and industrial economic situation, as well as the industry outlook. Based on the Company’s historical experience in credit losses, the loss patterns of different customers are significantly different, the expected credit loss rate is calculated based on the trade receivables of individual customers.

If there is evidence that a counterparty is facing serious financial difficulties and the Company cannot reasonably expect to recover the amount, e.g., the counterparty is in liquidation, the Company will directly write off the relevant trade receivables, but will continue to try to collect the receivable. The recovered amount is recognized in profit or loss.

All the Company's trade receivables as of December 31, 2021 and 2020 are not past due.

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11. Finance lease receivables

Finance lease receivables
Undiscounted lease payments Year 1 Year 2 Year 3 Year 4 Year 5 Less: Unearned finance income Lease payments receivable Net investment in leases presented as finance lease receivables	December31,2021 $ 28,003 20,658 211 - - 48,872 ( 870) 48,002 $ 48,002	December31,2020
	(	(	$ 23,490 27,256 18,672 221 - 69,639 2,162) 67,477 $ 67,477

The Company measures the loss allowance for the finance lease receivable based on the lifetime expected credit losses. As of the end of the reporting period, there were no overdue finance lease receivable. At the same time, considering the past default history of each counterparty, the future development of the underlying lease industry, and the value of the collateral, the Company believed that the finance lease receivable above was not impaired.

12. Inventories

Inventories
Property under development Property to be developed Buildings and land held for sale	December 31,2021 $ 1,224,506 316,757 5,213,560 $ 6,754,823	December 31,2020
			$ 843,886 497,981 6,187,655 $ 7,529,522

Property under development

Property under development
Project name Sanzhi Project - East Side Sanzhi Project - West Side	Estimated completionyear 2024 2025	December 31, 2021 $ 1,029,771 194,735 $ 1,224,506	December 31, 2020
				$ 843,886 - $ 843,886

Property to be developed

Property to be developed
Project name Subsection 1, Wenquan Section, Beitou District Sanzhi Project - West Side	December 31,2021 $ 316,757 - $ 316,757	December 31,2020
			$ 316,758 181,223 $ 497,981

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Buildings and land held for sale

Buildings and land held for sale
Project name Fu-Jou project Daqiaotou Project Others	December 31,2021 $ 4,745,305 384,405 83,850 $ 5,213,560	December 31,2020
			$ 4,832,747 1,245,381 109,527 $ 6,187,655

• (I) As of December 31, 2021 and 2020, it was expected that the inventory recovered after more than 12 months would be $1,541,263 thousand and $1,341,867 thousand respectively.

• (II) Please refer to Note 29 for information on the Company’s amount of inventories pledged.

• (III) To enable the construction projects and construction to proceed and the completed construction projects to be delivered smoothly, the Company’s registration of the trust of construction in progress is as follows:

Project name Sanzhi Project – East & West Side	Trustee Baoguo Construction Management Co., Ltd.	Trustperiod
		It started from December 30, 2019, the project was completed, and the first-time registration of ownership was completed.

For the above-mentioned trust contract, the Company entrusts the trustees to execute fund control, property right management, financing loan repayment, selfraising funds, and necessary expenses and expenditures incurred by the trust relationship.

• (IV) Please refer to Note 17 for the information on the reclassification of inventory to investment property due to changes in the purpose of use.

• (V) The inventory-related cost of sales in 2021 and 2020 was $999,560 thousand and $1,512,087 thousand respectively. The cost of sales included gains on inventory value recoveries of $9,907 thousand and $7,502 thousand, respectively. The recovery in the net realizable value of inventories in 2021 and 2020 was due to the increase in the selling price of the inventories in the market.

• 34 -

13. Prepayments and other assets

Prepayments and other assets
Overpaid sales tax Others Prepayments Other assets - current	December 31,2021 $ - 148,697 $ 148,697 $ 143,604 5,093 $ 148,697	December 31,2020
			$ 15,321 125,156 $ 140,477 $ 136,396 4,081 $ 140,477

14. Investments accounted for using equity method

Investments in subsidiaries

Investments in subsidiaries
Unlisted company Ji-Shun Life Tech Co., Ltd. (Ji- Shun) Li Chiang Development Co., Ltd. (Li- Chiang) Rih Yao Development Co., Ltd. (Rih-Yao) Radium Far East Co., Ltd. (Far East) Titan Development and Construction Co., Ltd. (Titan) Wan Da Tong Enterprise Co., Ltd. (Wan-Da-Tong) Radium-Kagaya International Hotel Co., Ltd. (KaGaYa) Zhao Yao Enterprise Co., Ltd. (Zhao-Yao) Clever Base Investments Limited (Clever Base) Xin Xiu Ge Hotel Co., Ltd. Co., Ltd. (Xin-Xiu-Ge) Jing-Jan Investment Holdings Co., Ltd. (Jing-Jan Hldg) Rih Siang Property Management Co., Ltd. (Rih-Siang) Rih Zuan Green Energy Technology Co., Ltd. (Rih- Zuan) Wan Tong Digital Technology Co., Ltd. (Wan-Tong) LiJiang Business Consulting(Shanghai). (LiJiang) Rih-Ding Circular Economy Investment Holdings Co., Ltd. (Rih-Ding Hldg)	December 31,2021 $ 843,480 476,190 683,172 603,597 1,178,354 1,764,916 114,459 1,422,078 - 320,127 3,582,214 1,918,905 44,650 - 2,497 6,299,866	December 31,2020
		$ 716,492 520,180 748,458 624,249 1,249,678 1,760,682 114,907 1,463,779 5,434 324,423 3,602,643 1,932,299 42,089 8,477 2,959 5,713,974 (Continued)

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Jing Ding Green Energy Technology Co., Ltd. (Jing- Ding) Less: Unrealized gain from affiliate Less: Accumulated impairment	December 31,2021 $ 6,871 ( 1,286,518 ) ( 130,802) $ 17,844,056	December 31,2020
		$ 7,200 ( 1,289,256 ) ( 155,686) $ 17,392,981

The Company's ownership interest and percentage of voting rights in the subsidiaries at the end of the reporting period are as follows:

Unlisted company Ji-Shun Li- Chiang Rih-Yao Far East Titan Wan-Da-Tong KaGaYa Zhao-Yao Clever Base Xin-Xiu-Ge Jing-Jan Hldg Rih-Siang Rih-Zuan Wan-Tong LiJiang Rih-Ding Hldg Jing-Ding	December 31,2021 100.00% 100.00% 100.00% 99.93% 100.00% 28.35% 100.00% 100.00% - 100.00% 61.06% 100.00% 90.00% - 100.00% 100.00% 37.00%	December 31,2020
		100.00% 100.00% 100.00% 99.93% 100.00% 28.35% 100.00% 100.00% 100.00% 100.00% 61.06% 100.00% 90.00% 90.00% 100.00% 100.00% 37.00%

The Company’s shareholding in Wan-Da-Tong is 28.35%. Since the remaining 71.65% of the shares are held by Jing-Jan Hldg, and Titan holds 36.80% of the shares of Jing-Jan Hldg, it is judged that the Company is able to exercise significant influence over Wan-Da-Tong, so it is classified as a subsidiary.

The Company’s shareholding in Jing-Ding is 37.00%. Because Ding-Sheng holds 33.00% of its shares, and Rih-Ding Hldg holds 100.00% of Ding-Sheng’s shares, it is judged that the Company is able to exercise significant influence over Jing-Ding, so it is classified as a subsidiary.

The share of profits and losses and other comprehensive income of the subsidiaries accounted for using the equity method in 2021 and 2020 were recognized based on the subsidiaries’ financial statements that have been audited by CPAs for the same periods.

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Based on the results of the appraisal report in 2021, the Company estimated the recoverable amount of the completed investment properties of Far East is expected to be greater than the carrying amount. After assessment, the Company recognized impairment of $24,884 thousand for gains on reversal in 2021 for Far East, under the equity method for subsidiaries, affiliates and joint ventures of the parent company only statement of comprehensive income. As of December 31, 2021 and 2020, the accumulated impairment of the investment under the equity method by the Company was $130,802 thousand and $155,686 thousand.

Rih-Ding Hldg was established on March 5, 2020, and approved by and registered with the Taipei City Government. Jing-Ding was established on September 18, 2020, and approved by and registered with the Central Region Office, Ministry of Economic Affairs.

Kai Chuang cancelled its registration on April 8, 2020; Sharp China Investments cancelled its registration on April 17, 2020; Rih Ding Investments cancelled its registration on February 25, 2021; Wan Tong Digital registered for it dissolution on April 26, 2021 and obtained a letter of liquidation letter from the court on January 25, 2022; while Clever Base cancelled its registration on June 8, 2021.

The Company’s board of directors resolved to adjust the organizational structure on April 6, 2020. Rih-Ding Hldg issued new shares and obtained 100% of the Company’s shares in Rih-Ding Water and Ding-Sheng through share swap arrangements, and the record date of share swap was May 8, 2020.

For the amount of investments accounted for using equity method pledged by the Company to secure borrowings, please refer to Note 29.

15. Property, plant and equipment

(I) Assets used by the company

Cost Balance at January 1, 2021 Additions Balance at December 31, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Depreciation expenses Balance at December 31, 2021 Carrying amoun at December 31, 2021		Freehold Land $ 47,750 - $ 47,750 $ - - $ - $ 47,750		Buildings	Transportation Equipment $ 1,302 - $ 1,302 $ 1,213 41 $ 1,254 $ 48		Office Equipment $ 36,028 2,632 $ 38,660 $ 31,095 1,844 $ 32,939 $ 5,721		Other Equipment $ 16,828 2,140 $ 18,968 $ 14,785 613 $ 15,398 $ 3,570		Total
				$ 83,418 - $ 83,418 $ 28,759 2,597 $ 31,356 $ 52,062							$ 185,326 4,772 $ 190,098 $ 75,852 5,095 $ 80,947 $ 109,151

(Continued)

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Cost Balance at January 1, 2020 Additions Balance at December 31, 2020 Accumulated depreciation and impairment Balance at January 1, 2020 Depreciation expenses Balance at December 31, 2020 Carrying amount at December 31, 2020		Freehold Land $ 47,750 - $ 47,750 $ - - $ - $ 47,750		Buildings	Transportation Equipment $ 1,302 - $ 1,302 $ 1,172 41 $ 1,213 $ 89		Office Equipment $ 35,085 943 $ 36,028 $ 29,190 1,905 $ 31,095 $ 4,933		Other Equipment $ 15,229 1,599 $ 16,828 $ 14,561 224 $ 14,785 $ 2,043		Total
				$ 83,418 - $ 83,418 $ 26,162 2,597 $ 28,759 $ 54,659							$ 182,784 2,542 $ 185,326 $ 71,085 4,767 $ 75,852 $ 109,474

Depreciation expenses of the property, plant and equipment are calculated on a

straight-line basis over their estimated useful lives as shown in the following:

Buildings	10-50 years
Transportation equipment	5 years
Office equipment	3-15 years
Other equipment	1-10 years

• (II) As of December 31, 2021 and 2020, the accumulated impairment of the property, plant and equipment, through the assessment of their recoverable amounts based on their net fair values was both $19,569 thousand.

• (III) For the amount of property, plant and equipment pledged by the Company as collateral for borrowings, please refer to Note 29.

• Lease arrangements

• (I) Right-of-use assets

Right-of-use assets
Carrying amount Buildings Transportation equipment Additions to right-of-use assets Depreciation charge for right- of-use assets Buildings Transportation equipment	December31,2021 $ 20,889 3,554 $ 24,443 2021 $ 34,522 $ 10,444 2,713 $ 13,157	December31,2020
			$ - 3,441 $ 3,441 2020
			$ 1,616 $ 13,045 2,087 $ 15,132

The above-mentioned amount of right-of-use assets does not include right-ofuse assets that meet the definition of investment properties.

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(II) Lease liabilities

Lease liabilities
Carrying amount Current Non-current	December31,2021 $ 115,744 $ 78,394	December31,2020
			$ 104,663 $ 172,011

Range of discount rate for lease liabilities is as follows: December 31, 2021 December 31, 2020 Transportation equipment 1.83%～2.72% 2.15%～2.72%

(III) Material lease-in activities and terms

The Company has leased several buildings for offices over a lease terms of 3 years. The Company has also leased certain transportation equipment over a lease term of 3 years. The Company does not have preferential right to acquire the buildings leased at the end of the lease term.

(IV) Sublease

The Company’s sublease transactions have been detailed in Notes 11 and 17. (V) Other lease information

Other lease information
Expenses relating to short-term leases Total cash outflow of leases		2021 $ 5,755 $ 127,207)		2020
	(		(	$ 4,910 $ 143,363)

The Company has leased certain office equipment which qualifies for shortterm leases and certain equipment which qualifies for low-value asset leases. The Company has elected to apply the recognition exemption for said equipment and, thus, did not recognize the right-of-use assets and lease liabilities of said leases.

17. Investment properties

Investment properties
Cost Balance at January 1, 2021 Disposals Transfers to finance lease receivables Transfers from finance lease receivables Balance at December 31, 2021		Completed Investment Properties $ 7,387,312 - - - $ 7,387,312	Right-of-use Assets $ 284,492 ( 15,831 ) ( 95,176 ) 14,094 $ 187,579	Total
				$ 7,671,804 ( 15,831 ) ( 95,176 ) 14,094 $ 7,574,891 (Continued)

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		Completed	Completed
		Investment			Right-of-use
		Properties				Assets		Total
Accumulated depreciation
and impairment
Balance at January 1, 2021		$	918,434		$	122,357		$ 1,040,791
Depreciation expenses			155,752			54,801		210,553
Disposals			-	(		14,467 )	(	14,467 )
Transfers to finance lease
receivables			-	(		49,620)	(	49,620)
Balance at December 31,
2021		$	1,074,186		$	113,071		$ 1,187,257
Carrying amount at
December 31, 2021		$	6,313,126		$	74,508		$ 6,387,634
Cost
Balance at January 1, 2020		$	8,841,981		$	406,913		$ 9,248,894
Disposals	(		1,480,924 )	(		21,943 )	(	1,502,867 )
Transfers to finance lease
receivables			-	(		117,924 )	(	117,924 )
Transfers to buildings and
land held for sale	(		91,894 )			-	(	91,894 )
Transfers from buildings and
land held for sale			118,149			-		118,149
Transfers from finance lease
receivables			-			17,446		17,446
Balance at December 31,
2020		$	7,387,312		$	284,492		$ 7,671,804
Accumulated depreciation
and impairment
Balance at January 1, 2020		$	947,739		$	95,972		$ 1,043,711
Depreciation expenses			190,605			79,620		270,225
Disposals	(		242,825 )	(		20,451 )	(	263,276 )
Transfers to finance lease
receivables			-	(		32,784 )	(	32,784 )
Transfers to buildings and
land held for sale	(		1,960 )			-	(	1,960 )
Transfers from buildings and
land held for sale			24,875			-		24,875
Balance at December 31,
2020		$	918,434		$	122,357		$ 1,040,791
Carrying amount at
December 31, 2020		$	6,468,878		$	162,135		$ 6,631,013

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• (I) For the right-of-use assets in the investment properties, it is the buildings subleased by the Company to others in the form of operating leases.

• (II) The fair value of the investment properties finished by the Company as of December 31, 2021 and 2020 was $10,368,279 thousand and $10,160,924 thousand, respectively. The fair value was based on the appraisals conducted by independent appraisers Wei-Hsin Chin, Liang-An Chi, and Wen-Che Tsai, who were not related parties, at the dates. Said appraisals were conducted using the comparative method, the income approach, and the land development analysis method.

• (III) The major components of the Company’s investment properties mainly include the above-ground structures and interior and exterior decoration, etc., and are depreciated according to their useful lives of 10–50 years.

• (IV) For the amount of investment properties pledged by the Company, please refer to Note 29.

• (V) As of December 31, 2021 and 2020, the Company’s buildings and land were held in trust in order to obtain financing from financial institutions. The trust registration is

as follows:

as follows:
Project name Buildings and landin the fourth section of Zhongxiao East Road and relevant income	Trustee King's Town Bank Co., Ltd.	Trustperiod
		From July 27, 2009 to July 31, 2024.

For the above-mentioned trust contract, the Company entrusts the trustees to execute fund control, property right management, financing loan repayment, and necessary expenses and expenditures incurred by the trust relationship.

• (VI) As of December 31, 2021 and 2020, the accumulated impairment of the investment properties, through the assessment of their recoverable amounts based on their net fair values was both NT$94,412 thousand. The Company determines the recoverable amount of the finished investment properties based on the fair value less disposal costs. The relevant fair value is determined under the comparative method. The main assumptions include the estimated selling price, which belongs to the Level 2 fair value measurement.

• (VII) The lease terms for the lease out of investment properties range from 1 to 18 years. When the lessee exercises the right to renew a lease, it is agreed that the rent will be

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adjusted according to the market level. At the end of the lease term, the lessee has no preferential right to purchase the investment properties. In addition to fixed lease payments, the lease contract also stipulates that the lessee shall pay variable lease payments based on a specific percentage of its revenue.

(VIII) The total amount of lease payments that will be received in the future for leasing out

investment properties under operating leases is as follows:

investment properties under operating	leases is as follows:
Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 onwards rrowings Short-term borrowings Secured borrowings Bank loans Unsecured borrowings Bank loans	December 31,2021 $ 142,561 88,845 33,379 7,147 6,516 23,951 $ 302,399 December 31,2021 $ 797,532 618,032 $ 1,415,564	December 31,2020
		$ 145,880 140,682 86,160 32,205 5,956 29,863 $ 440,746 December 31,2020
			$ 1,887,250 607,355 $ 2,494,605

18. Borrowings

(I) Short-term borrowings

The interest rate range of short-term borrowings as of December 31, 2021 and 2020 was 1.90%–2.97% and 2.00%–3.07%, respectively. Please refer to Note 29 for the collateral pledged for the above-mentioned borrowings.

(II) Short-term bills payable

Short-term bills payable
Guarantee or acceptance institutions Entie Bank Taiwan Cooperative Bills Finance Corporation International Bills Finance Corporation Less: Discount on short-term bills payable	December 31,2021 $ 620,300 436,100 309,000 1,365,400 ( 796) $ 1,364,604	December 31,2020
	(		$ - - - - - $ -

The interest rate range of short-term bills payable as of December 31, 2021 was 0.37%–1.33% Please refer to Note 29 for the collateral pledged for the abovementioned short-term bills payable.

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(III) Long-term borrowings

December 31, 2021 December 31, 2020

Secured borrowings
Syndicated loan project led by
Bank of Taiwan		$ 2,155,000		$ 2,425,000
Syndicated loan project led by
CTBC Bank		-		656,466
Other borrowings		9,247,024		9,481,895
Unsecured borrowings
Other borrowings from banks		252,070		263,150
Less: Arrangement fee of long-
term borrowings	(	5,750 )	(	12,663 )
Less: Current portion of long-
term borrowings and
bonds payable	(	6,196,247 )	(	1,437,443 )
Add: Arrangement fee of
current portion of long-
term borrowings		3,000		3,000
Long-term borrowings		$ 5,455,097		$ 11,379,405

The interest rate range of long-term borrowings as of December 31, 2021 and 2020 was 1.750%–2.588% and 1.54%–2.93%, respectively. The syndicated loan project led by Bank of Taiwan includes five banks. The syndicated loan project led by CTBC Bank includes four banks. The loan was repaid in advance on October 27, 2021. Please refer to Note 29 for the collateral pledged for the above-mentioned borrowings.

19. Bonds payable

Bonds payable
Secured domestic bonds Less: Bonds payable maturing within one business cycle Bonds payable	December 31,2021 $ 6,000,000 ( 1,500,000) $ 4,500,000	December 31,2020
	(		$ 5,500,000 - $ 5,500,000

• (I) The Company issued the first domestic secured ordinary bonds on September 14,

• The main conditions for the issue are as follows:

• Total amount of issue: $1,000,000 thousand.

• Price: The bonds are issued in full by face value, each with a face value of $1,000 thousand.

• Coupon interest rate and method of repayment of principal and interest: Annual interest rate is 1.02% with repayment of principal in a lump sum upon maturity.

• Duration: 5 years (September 14, 2017 to September 14, 2022).

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• Guarantee method: Taiwan Cooperative Bank is entrusted to guarantee the bonds in accordance with the guarantee contract.

• (II) The Company issued the second domestic secured ordinary bonds on November 23, 2017. The main conditions for the issue are as follows:

• Total amount of issue: $500,000 thousand.

• Price: The bonds are issued in full by face value, each with a face value of $1,000 thousand.

• Coupon interest rate and method of repayment of principal and interest: Annual interest rate is 1.02% with repayment of principal in a lump sum upon maturity.

• Duration: 5 years (November 23, 2017 to November 23, 2022).

• Guarantee method: Taiwan Business Bank is entrusted to guarantee the bonds in accordance with the guarantee contract.

• (III) The Company issued the first domestic secured ordinary bonds on July 1, 2019. The main conditions for the issue are as follows:

• Total amount of issue: $1,000,000 thousand.

• Price: The bonds are issued in full by face value, each with a face value of $1,000 thousand.

• Coupon interest rate and method of repayment of principal and interest: Annual interest rate is 0.80% with repayment of principal in a lump sum upon maturity.

• Duration: 5 years (July 1, 2019 to July 1, 2024).

• Guarantee method: Taiwan Cooperative Bank is entrusted to guarantee the bonds in accordance with the guarantee contract.

• (IV) The Company issued the first domestic secured ordinary bonds on June 1, 2020. The main conditions for the issue are as follows:

• Total amount of issue: $1,000,000 thousand.

• Price: The bonds are issued in full by face value, each with a face value of $1,000 thousand.

• Coupon interest rate and method of repayment of principal and interest: Annual interest rate is 0.68% with repayment of principal in a lump sum upon maturity.

• Duration: 5 years (June 1, 2020 to June 1, 2025).

• Guarantee method: First Commercial Bank is entrusted to guarantee the bonds in accordance with the guarantee contract.

• (V) The Company issued the second domestic secured ordinary bonds on July 1, 2020. The main conditions for the issue are as follows:

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• Total amount of issue: $1,000,000 thousand.

• Price: The bonds are issued in full by face value, each with a face value of $1,000 thousand.

• Coupon interest rate and method of repayment of principal and interest: Annual interest rate is 0.65% with repayment of principal in a lump sum upon maturity.

• Duration: 5 years (July 1, 2020 to July 1, 2025).

• Guarantee method: First Commercial Bank is entrusted to guarantee the bonds in accordance with the guarantee contract.

• (VI) The Company issued the third domestic secured ordinary bonds on December 29,

• The main conditions for the issue are as follows:

• Total amount of issue: $1,000,000 thousand.

• Price: The bonds are issued in full by face value, each with a face value of $1,000 thousand.

• Coupon interest rate and method of repayment of principal and interest: Annual interest rate is 0.55% with repayment of principal in a lump sum upon maturity.

• Duration: 5 years (December 29, 2020 to December 29, 2025).

• Guarantee method: Taiwan Business Bank is entrusted to guarantee the bonds in accordance with the guarantee contract.

• (VII) The Company issued the first domestic secured ordinary bonds on August 2, 2021. The main conditions for the issue are as follows:

• Total amount of issue: $500,000 thousand.

• Price: The bonds are issued in full by face value, each with a face value of $1,000 thousand.

• Coupon interest rate and method of repayment of principal and interest: Annual interest rate is 0.61% with repayment of principal in a lump sum upon maturity.

• Duration: 5 years (August 2, 2021 to August 2, 2026).

• Guarantee method: Taiwan Business Bank is entrusted to guarantee the bonds in accordance with the guarantee contract.

20. Provisions

Provisions
Non-current Warranties	December 31,2021 $ 255,642	December 31,2020
			$ 257,370

The provisions for warranty is the present value of the best estimate of the future outflow of economic benefits caused by the warranty obligation made by the

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management of the Company according to the sales contract. This estimate is based on historical warranty experience, and is adjusted in consideration of new materials, process changes, or other factors that affect product quality.

Maturity analysis of assets and liabilities

The assets and liabilities related to the Company’s construction business is classified as current or non-current according to the operating cycle. The relevant amounts recognized are based on the amounts expected to be recovered or repaid within one year and more than one year after the end of the reporting period, which are listed below:

below:
Assets Financial assets at amortized cost - current Notes receivable and trade receivables Buildings and land held for sale Property under development Property to be developed Refundable deposits - current Incremental costs of obtaining a contracts Liabilities Contract liabilities - current Guarantee deposits received (shown as other current liabilities) Current portion of long-term borrowings		December 31,2021
		Within 1year $ 117,921 $ 21,249 $ 5,213,560 $ - $ - $ 225,387 $ - $ 61,997 $ 374 $ -		More than 1 year $ - $ - $ - $ 1,224,506 $ 316,757 $ - $ 31,598 $ 166,172 $ - $ 494,394		Total
						$ 117,921 $ 21,249 $ 5,213,560 $ 1,224,506 $ 316,757 $ 225,387 $ 31,598 $ 228,169 $ 374 $ 494,394

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Assets Financial assets at amortized cost - current Notes receivable and trade receivables Buildings and land held for sale Property under development Property to be developed Refundable deposits - current Liabilities Contract liabilities - current Guarantee deposits received (shown as other current liabilities) Current portion of long-term borrowings	December 31,2020	December 31,2020	December 31,2020
	Within 1year $ 8,423 $ 22,269 $ 6,187,655 $ - $ - $ 190,854 $ 44,769 $ 516 $ 479,510		More than 1 year $ - $ - $ - $ 843,886 $ 497,981 $ - $ 6,800 $ - $ -		Total
					$ 8,423 $ 22,269 $ 6,187,655 $ 843,886 $ 497,981 $ 190,854 $ 51,569 $ 516 $ 479,510

22. Retirement benefit plans

(I) Defined contribution plans

The Company has adopted a pension plan under the Labor Pension Act (LPA), which is a state-managed defined contribution plan. Under the LPA, the Company makes monthly contributions to employees’ individual pension accounts of the Bureau of Labor Insurance at 6% of monthly salaries and wages.

(II) Defined benefit plans

The pension system adopted by the Company in accordance with the Labor Standards Act of R.O.C. is a state-managed defined benefit pension plan. The payment for employee pensions is calculated based on the length of service and the average salary in the 6 months prior to the approved retirement date. The Company contributes pensions at 2% of the total monthly employee salaries, which are deposited by the Pension Fund Monitoring Committee in the pension account with the Bank of Taiwan in the name of the committee. Before the end of each year, if the

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balance in the pension account assessed is inadequate to pay for the retirement benefits for employees who meet the retirement requirements in the following year, the Company will contribute an amount to make up for the difference in a lump sum by the end of March of the following year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor; the Company has no right to influence the investment management strategy.

The amounts included in the parent company only balance sheets in respect of the Company’s defined benefit plans are as follows:

Present value of defined benefit obligation Fair value of plan asset Insufficiency in contribution Net defined benefit liabilities	December 31,2021 $ 19,757 ( 12,514) 7,243 $ 7,243	December 31,2020	December 31,2020
	(	(	$ 20,381 11,721) 8,660 $ 8,660

Changes in net defined benefit liabilities are as follows:

Balance atJanuary 1, 2020 Service cost Current service cost Net interest expense (income) Recognized in profit or loss Remeasurement Return on plan assets (excluding amounts included in net interest) Actuarial loss - changes in financial assumptions Actuarial gain - experience adjustments Recognized in other comprehensive income Contributions from the employer Balance atDecember 31, 2020 Service cost Current service cost Net interest expense (income) Recognized in profit or loss	Present value of the defined benefit obligation $ 20,004 65 139 204 - 696 ( 523) 173 - 20,381 66 61 127	Fair value ofthe plan assets ($ 10,871) - ( 76) ( 76) ( 358 ) - - ( 358) ( 416) ( 11,721) - ( 35) ( 35)	Net defined benefit liabilities
	(		$ 9,133 65 63 128 ( 358 ) 696 ( 523) ( 185) ( 416) 8,660 66 26 92 (Continued)

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Remeasurement Return on plan assets (excluding amounts included in net interest) Actuarial loss - changes in demographic assumptions Actuarial gain - changes in financial assumptions Actuarial gain - experience adjustments Recognized in other comprehensive income Contributions from the employer Balance atDecember 31, 2021	Present value of the defined benefit obligation $ - 20 ( 551 ) ( 220) ( 751) - $ 19,757	Fair value ofthe plan assets ( $ 173 ) - - - ( 173) ( 585) ($ 12,514)	Net defined benefit liabilities
			( $ 173 ) 20 ( 551 ) ( 220) ( 924) ( 585) $ 7,243

Due to the pension plans under the Labor Standards Act, the Company is

exposed to the following risks:

• 1) Investment risk: The Bureau invests labor pension funds in domestic (foreign) equity securities, debt securities, and bank deposits on its own use and through agencies entrusted. However, the income from the Company’s amount allocated to plan assets is calculated based on the interest rate not lower than the local bank's interest rate for 2-year time deposits.

• 2) Interest risk: A decrease in the interest rate in the government bonds/corporate bonds will increase the present value of the defined benefit obligation; however, the return on the debt investment through the plan assets will also increase, and the increases will partially offset the effect of the net defined benefit liability.

• 3) Salary risk: The present value of the defined benefit obligation is calculated with reference to the future salaries of the participants in the plan. As such, an increase in the salary of the participants in the plan will increase the present value of the defined benefit obligation.

The actuarial valuations of the present value of the defined benefit obligation were carried out by qualified actuaries. The critical assumptions made on the measurement date are as follows:

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Discount rate Expected rate of salary increase Turnover rate	December31,2021 0.65% 2.00% 0.41%	December31,2020
		0.30% 2.00% 0.54%

If each of the critical actuarial assumptions is subject to reasonably possible

changes, when all other assumptions remain unchanged, the amounts by which the present value of the defined benefit obligation would increase (decrease) are as follows:

follows:
Discount rate 0.25% increase 0.25% decrease Expected rate of salary increase 0.25% increase 0.25% decrease Turnover rate 110% increase 90% decrease	December31,2021 ($ 384) $ 395 $ 389 ($ 379) $ - $ -	December31,2020
	( (	( (	$ 439) $ 453 $ 445 $ 433) $ - $ -

As actuarial assumptions may be correlated, it is unlikely that only a single assumption would occur in isolation of one another, so the sensitivity analysis above may not reflect the actual changes in the present value of the defined benefit obligation.

obligation.
Expected contributions to the plans for the next year Average duration of the defined benefit obligation	December31,2021 $ 369 7 years	December31,2020
			$ 366 8 years

23. Equity

(I) Share capital

Share capital
Authorized shares (in thousands) Authorized capital Issued and paid shares (in thousands) Issued capital	December31,2021 950,000 $ 9,500,000 900,095 $ 9,000,946	December31,2020
			950,000 $ 9,500,000 900,095 $ 9,000,946

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The ordinary shares issued, with a par value of NT$10 per share, are entitled to one voting right per share and to the right to receive dividends.

The Company’s board of directors passed the resolution on March 20, 2020 to repurchase 20,000 thousand treasury shares. Upon expiration, the actual number of shares repurchased was 12,213 thousand treasury shares. The cancellation and change registration for the capital reduction was conducted in accordance with the law, with July 8, 2020 set as the record date for capital reduction.

The board of directors passed the resolution on December 24, 2021 to purchase 20,000 thousand treasure shares. The cancellation and change registration for the capital reduction was conducted in accordance with the law, with March 9, 2022 set as the record date for capital reduction.

(II) Capital Surplus

Capital Surplus
Additional paid in capital Difference between consideration and carrying amount of subsidiaries acquired or disposed Retirement of treasury share	December31,2021 $ 1,223,774 59,494 24,575 $ 1,307,843	December31,2020
			$ 1,223,774 59,494 24,575 $ 1,307,843

Such capital surplus may be used to offset a deficit; in addition, when the

Company has no deficit, such capital surplus may be distributed as cash dividends or transferred to share capital (limited to a certain percentage of the Company’s capital surplus). If there is no cash inflow from the capital surplus, it can only be used to offset the deficit.

(III) Retained earnings and dividends policy

In accordance with the Company's Articles of Incorporation regarding earnings allocation, when there are earnings in the Company's annual final accounts, the earnings shall be allocated in the following order:

• 1) Pay taxes.

• 2) Offset the deficits from prior years.

• 3) Set aside 10% of the balance for legal reserve. Where such legal reserve amounts to the total paid-in capital, this provision shall not apply.

• 4) Set aside or reverse the special reserve when necessary in accordance with the law.

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• 5) With any remaining balance after deducting the amounts in 1. – 4., together with the accumulated earnings from prior years, the board of directors shall consider the Company's financial position and draft a proposal for distributing dividends to shareholders. The proposal will be submitted it to the shareholders' meeting for a resolution.

For information on the distribution of the employee compensation and remuneration of directors, please refer to Note 25 regarding employee compensation and remuneration of directors.

The life cycle of the Company's industry is at a developed and stable stage. After considering the Company's earnings, future capital needs, and development plans, the Company's dividends will be distributed in both stocks and cash. Of them, the cash dividends distributed shall not be less than 20% of the total dividends distributed for the year. However, if the cash dividends are less than NT$0.1 (inclusive) per share, the dividends may be fully distributed in stock.

The shareholders’ meeting held on July 29, 2021 resolved and passed the amendment to the Articles of Incorporation specifying that - when a special reserve is appropriated from the net deduction in other equity accumulated in the previous period, where the undistributed earnings of the previous period are insufficient, the undistributed earnings will be included in the undistributed earnings of the current period from net income plus items other than net income after tax of the current period. Prior to the amendment of the Articles of Incorporation, the Company carried out appropriation of earnings from distributed earnings of the previous period in accordance with the law.

Appropriation of earnings to legal reserve shall be made until the reserve equals the Company’s paid-in capital. Legal reserves may be used to offset the deficit. If the Company has no deficit and the legal reserve has exceeded 25% of the Company’s paid-in capital, the excess may be transferred to share capital or distributed in cash.

The earnings distribution proposals for 2020 and 2019 approved in the shareholders’ meetings on July 29, 2021 and May 18, 2019, respectively, are as follows:

follows:
Legalreserve Specialreserve Cash dividends Cash dividends per share (NT$)		2020 $ 62,263 $ 1,945) $ 558,058 $ 0.62		2019
	(		(	$ 40,673 $ 1,026) $ 547,385 $ 0.6

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The 2021 earnings distribution proposal put forth by the Company’s board of directors on March 29, 2022 is as follows:

Legalreserve Specialreserve Cash dividends Cash dividends per share (NT$)		2021
		$ 6,164 $ 156 $ 176,019 $ 0.2

The 2021 earnings distribution proposal has yet to be resolved by the shareholders' meeting scheduled to be held on May 27, 2022.

(IV) Treasury shares

Treasury shares
Purpose of Buy-back Number of shares at January 1, 2021 Increase during the year Number of shares at December 31, 2021 Number of shares at January 1, 2020 Increase during the year Decrease during the year Number of shares at December 31, 2020	Shares cancelled (in thousands of shares)
	(	- 3,649 3,649 - 12,213 12,213) -

Treasury shares hold by the Company may not be pledged in accordance with

the Securities and Exchange Act, and are not entitled to dividends or voting rights.

24. Revenue

Revenue
Revenue from contracts with customers Construction contract revenue Rental income Investment properties (Note 17) Variable lease payments that do not depend on an index or a rate Other lease payments		2021 $ 1,282,008 381 140,719 141,100 $ 1,423,108		2020
				$ 1,941,042 7 174,343 174,350 $ 2,115,392

(I) Contract balance

Contract balance
Trade receivables (Note 10) Contract liabilities - current Sale of properties		December 31, 2021 $ 28,672 $ 228,169		December 31, 2020 $ 30,426 $ 51,569	January1,2020
						$ 124,284 $ 621,153

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The change in contract assets and liabilities is mainly due to the difference

between the point of meeting the performance obligation and the time of payment by the customer.

The contract liabilities at the beginning of the year recognized as revenue for the

current year is as follows:

current year is as follows:
From contract liabilities at the start of the year Sale of properties		2021 $ 12,627		2020
				$ 47,495

The credit risk management adopted by the Company for contract assets is the

same as that for trade receivables, please refer to Note 10.

• (II) Assets related to contract costs

Assets related to contract costs
Current Incremental costs of obtaining contracts		2021 $ 31,598		2020
				$ -

25.	Net profit
(I)	Interest income
			2021		2020
	Bank deposits	$	1,728	$	1,786
	Net investments in leases		1,231		1,723
	Others		17		23
		$	2,976	$	3,532
(II)	Other gains and losses
			2021		2020
	Net foreign exchange losses	( $	169 )	( $	201 )
	Net gains (losses) on financial
	assets at fair value through
	profit or loss	(	326 )	(	31 )
	Others	(	30,995)	(	50,318)
		($	31,490)	($	50,550)
(III)	Finance costs
			2021		2020
	Interest on bank loans	$	308,238	$	371,885
	Interest on lease liabilities		6,229		9,431
	Others		52,235		35,768
	Less: Amounts included in the
	cost of qualifying assets	(	13,891)	(	10,105)
		$	352,811	$	406,979

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Relevant information on capitalization of interest is as follows:

Capitalized interest amount Capitalization rate (IV) Depreciation and amortization An analysis of depreciation by function Operating costs Operating expenses An analysis of amortization by function Operating costs Operating expenses (V) Employee benefits expense Post-employment benefits (Note 22) Defined contribution plans Defined benefit plans Other employee benefits Total employee benefits expenses An analysis of employee benefits expense by function Operating costs Operating expenses	2021 $ 13,891 0.63%～1.99% 2021 $ 156,255 72,550 $ 228,805 $ - 5,830 $ 5,830 2021 $ 5,262 92 154,063 $ 159,417 $ 123 159,294 $ 159,417	2020	2020
		$ 10,105 0.72%～2.04% 2020
			$ 186,169 103,955 $ 290,124 $ - 5,154 $ 5,154 2020
			$ 7,486 128 218,912 $ 226,526 $ - 226,526 $ 226,526

(VI) Employee compensation and remuneration of directors

If the Company records a profit in the year, it shall allocate no less than 0.5% of the balance for employee compensation, which shall be distributed in stock or cash as resolved by of the board of directors; the Company may allocate no more than 1% of said profit for the remuneration of directors as resolved by of the board of directors. The proposals for employee compensation and directors’ remuneration shall be reported to the shareholders’ meeting.

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Where there is an accumulated loss, the profit shall be reserved to make up for the loss and the remuneration to employees and directors shall be provided in proportion in accordance with the aforementioned amount. The Company carries out the transfer of treasury shares to employees, employee stock options, employee remuneration, employee subscription of new shares, and restricted stock awards to employees of controlling or subordinate companies who meet certain conditions. These conditions are determined by the board of directors.

The 2021 estimated compensation and remuneration of employees and directors and 2020 compensation and remuneration of employees and directors resolved by the board of directors on March 26, 2021 are as follows:

board of directors on March 26, 2021	are as follows:
Compensation of employees Remuneration to directors	2021 Cash $ 1,000 300	2020
		Cash
		$ 7,200 5,000

The actual amount of 2021 distribution of compensation and remuneration of employees and directors resolved by the board of directors on March 29, 2022 was $1,300 thousand and $600 thousand, which were different from the amounts recognized in the annual financial statements. As the differences were not significant, they were adjusted to profit or loss for 2022.

The actual amounts of distribution of compensation and remuneration to employees and directors for 2020 and 2019 resolved by the board of directors on March 26, 2021 and March 30, 2020 were not different from the amounts recognized in the parent only company financial reports for 2020 and 2019.

For the information on the Company's employee compensation and the remuneration of directors for 2021 and 2020 as resolved by the board resolutions, please visit the Market Observatory Post System (MOPS) of the Taiwan Stock Exchange.

26. Income tax

(I) Income tax recognized in profit or loss

Major components of income tax expenses are as follows:

Tax currently payable In respect of the current year Adjustments for prior year Income tax expense recognized in profit or loss		2021 $ 2,175 48) $ 2,127		2020
	(		(	$ 21,451 1,036) $ 20,415

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The Company’s reconciliation between the accounting income and the current

income tax expense is as follows:

income tax expense is as follows:
			2021		2020
Profit before income tax		$	62,470		$ 643,103
Income tax expense calculated
at the statutory rate (20%)		$	12,494		$ 128,621
Nondeductible expense in
determining taxable income			55,025		59,176
Tax- exempt income	(		184,472 )	(	442,218 )
Deductible temporary
differences			9,842		148,614
Income tax on unappropriated
earnings			213		1,879
Investment tax credits	(		106 )	(	939 )
Land value increment tax			2,068		20,511
Adjustments for prior year’s
tax	(		48 )	(	1,036 )
Loss carryforwards that cannot
be retained			107,111		105,807
Income tax expense recognized
in profit or loss		$	2,127		$ 20,415

• (II) Deductible temporary differences, unused loss carryforwards, and unused investment tax credits for deferred tax assets not recognized in the parent company only balance sheet

sheet
Loss carryforwards Deductible temporary difference Investment tax credits Major infrastructure projects	December 31,2021 $ 9,802,198 $ 2,114,994 $ 137,094	December 31,2020
			$ 10,184,178 $ 2,065,882 $ 137,200

• (III) Information on unused investment tax credits, loss carryforwards, and tax exemptions

As of the end of 2021, the relevant information on income tax credits is as follows:

Legal basis Act for Promotion of Private Participation in Infrastructure Projects Act for Promotion of Private Participation in Infrastructure Projects	Item Investment in major infrastructure projects Investment in major infrastructure projects	Balance before reduction	Balance before reduction	Final year for deduction 2022 2023
			$ 57,094 $ 80,000

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As of the end of 2021, the relevant information on loss carryforwards:

Balance before deduction $ 370,946 $ 3,456,070 $ 1,874,106 $ 4,101,076	Final year for deduction
	2022 2023 2027 2028

(IV) Income tax approval

The profit-seeking enterprise income tax returns filed by the Company up to 2019 have been approved by the tax collection authority.

27. Earnings per share

Earnings per share
Basic earnings per share Diluted earnings per share		2021 $ 0.07 $ 0.07	Unit: NT$ per share 2020 $ 0.69 $ 0.69

The earnings and the weighted average number of ordinary shares used to calculate the earnings per share are as follows:

Net profit for the year

Net profit for the year
Net profit in the computation of basic earnings per share Number of shares Weighted average number of ordinary shares used in computation of basic earnings per share Effect of potentially dilutive ordinary shares: Compensation of employees Weighted average number of ordinary shares used in the computation of diluted earnings per share		2021 2020 $ 60,343 $ 622,688 Unit: In thousands of shares 2021 2020 900,064 903,349 243 739 900,307 904,088

If the Company can settle the compensation to employees in cash or shares, the

Company assumes the entire amount of the compensation would be settled in shares and the resulting potential shares are included in the weighted average number of shares outstanding used in the computation of diluted earnings per share if the effect is

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dilutive. Such a dilutive effect of the potential shares is included in the computation of diluted earnings per share until the shareholders resolve the number of shares to be distributed to employees at their meeting in the following year.

28. Related party transactions

Except as disclosed in other notes, the transactions between the Company and related parties are as follows:

(I) Related party name and relationship

Related partyname Joint operations of Titan and New Asia Construction & Development Corp. (hereinafter referred to as Joint Control and Operation of Fu-Jou Project in Banqiao) Joint operations of Titan and CTCI Smart Engineering Corporation KaGaYa Ji-Shun Titan Far East Xin-Xiu-Ge Wan-Da-Tong Li- Chiang Zhao-Yao Rih-Yao Jing-Jan Hldg Rih-Siang Rih-Zuan Wan-Tong Jing-Ding Rih-Ding Hldg Rih-Ding Water Ding-Sheng Ji Sheng Zih Chan Development Co., Ltd. Jing-Jan Retail Business Co., Ltd. (Jing-Jan) Jing-Jan Digital Square Co., Ltd. Prit Biotech Co., Ltd. (Prit) Jing-Yang Apartment Building Management and Maintenance Co., Ltd. Radium Foundation Lin Rong Shian Lin Loong-Huan

Relationship with the Company Joint operator Joint operator Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Sub-subsidiary Sub-subsidiary Sub-subsidiary Sub-subsidiary Sub-subsidiary Sub-subsidiary Associate Substantive related party Substantive related party Substantive related party (Continued)

• 59 -

Related partyname Golden Century Co., Ltd. Ri-Jun Investment Co., Ltd. Jun-An Construction Development Co., Ltd. Changxin Investment Development Co., Ltd. Lee White Corporation Jing-Kang Development Investment Co., Ltd. Chic Stuff Incorporated Ding-Sheng Digital Life Co., Ltd. Jin-Hua-Tai Investment Co., Ltd. K. C. Chou Shen Ching-Peng Liu Yao-Kai Liu Wen-Chi An Ke-Chieh Ann Ching-I	Relationship with the Company
	Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party Substantive related party

• (II) Transactions with Related Parties

• 1) Property under development - outsourcing of projects and property under

construction

2021

2021
Relatedpartycategory/name Titan 2020 Relatedpartycategory/name Titan	Nature ofproject Construction project Nature ofproject Construction project	Amount paid in the currentperiod
		$ 155,227 Amount paid in the currentperiod
			$ 5,417

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2) Contract liabilities

As of December 31, 2021 and 2020, the total contract price (including tax) of the property sold by the Company to the substantive related parties was $30,720 thousand and $0, respectively. The contract liabilities (before tax) as of December 31, 2021 and 2020 were $9,415 thousand and $0, respectively.

• 3) Consultant fee income (shown as other income and reduction of expense

accounts)

	accounts)
4) 5) 6) 7)	Relatedpartycategory/name 2021 2020 Subsidiaries $ 25,257 $ 48,108 Sub-subsidiary 9,340 8,801 $ 34,597 $ 56,909 Operating expenses - property management and consultancy services Relatedpartycategory/name 2021 2020 Subsidiaries $ 28,840 $ 4,459 Associate 2,090 8,414 $ 30,930 $ 12,873 Operating expenses - donation Relatedpartycategory/name 2021 2020 Substantive related party $ 5,182 $ 5,182 Operating expenses - rent expense Relatedpartycategory/name 2021 2020 Sub-subsidiary $ 125 $ 176 Selling and marketing expenses - miscellaneous expense Relatedpartycategory/name 2021 2020 Titan $ - $ 77,149		2020
			$ 4,459 8,414 $ 12,873 2020
			$ 5,182 2020
			$ 176 2020
			$ 77,149

• 8) Other income and deferred credits - gains between associates

2021

2021
Item Project management income Revenue from payment and collection services Gains on disposals of investment property	Related party category/name Wan-Da-Tong Wan-Da-Tong Jing-Jan Retail		Amount $ 322,000 2,111 1,125,329 $ 1,449,440	Realized gains (losses) for the year $ 4,923 32 ( 2,217) $ 2,738		Unrealized gains $ 157,936 1,036 1,127,546 $ 1,286,518	Basis for recognition of unrealized gains
				(			Sales rate and progress of T9 project Sales rate and progress of T9 project Disposal of shopping mall in MEHAS Project

• 61 -

2020

2020
Item Related party category/name Project management income Wan-Da-Tong Revenue from payment and collection services Wan-Da-Tong Gains on disposals of investment property Jing-Jan Retail Trade receivables from related Relatedpartycategory/name Subsidiaries		Amount Realized gains for theyear $ 322,000 $ 4,993 2,111 33 1,125,329 - $ 1,449,440 $ 5,026 parties December 31,2021 $ 5,401				Unrealized gains Basis for recognition of unrealized gains $ 162,859 Sales rate and progress of T9 project 1,068 Sales rate and progress of T9 project 1,125,329 Disposal of shopping mall in MEHAS Project $ 1,289,256 December 31,2020 $ 5,250			Basis for recognition of unrealized gains
				$ 5,401				$ 5,250

9) Trade receivables from related parties

10) Other receivables from related parties (excluding loans to related parties and

contract assets)

contract assets)
Relatedpartycategory/name Subsidiaries Trade payables to related parties Relatedpartycategory/name Titan	December 31,2021 $ 446 December 31,2021 $ 318,726	December 31,2020
		$ 275 December 31,2020
			$ 306,597

11) Trade payables to related parties

12) Other payables to related parties (excluding borrowings from related parties)

Relatedpartycategory/name Subsidiaries Sub-subsidiary Associate Lease-in arrangements Acquisition of right-of-use assets Relatedpartycategory/name Right-of-use assets Subsidiaries Lease liabilities Subsidiaries Interest expenses Substantive related party	December 31,2021 $ 591 652 45 $ 1,288 2021 $ 31,333 $ 20,889 $ -	December 31,2020	December 31,2020
			$ 211 302 55 $ 568 2020
			$ - $ - $ 196

13) Lease-in arrangements

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Acquisition of investment properties - right-of-use assets

Acquisition of investment properties-right-of-use assets	f-use assets
Account title Related party category/name December 31, 2021 Lease liabilities Substantive related party $ 1,282 Relatedpartycategory/name 2021 Interest expenses Substantive related party $ 47	December 31, 2021		December 31, 2020
					$ 2,122 2020
				$ 82

• 14) Lease-out arrangements

Operating lease

Operating lease
Related party category/name KaGaYa Jing-Jan Subsidiaries Sub-subsidiary Substantive related party		2021		% of the account balance 43 - 2 1 - 46		2020
		Amount $ 60,000 750 2,989 809 910 $ 65,458				Amount $ 60,000 32,720 6,807 777 863 $ 101,167		% of the account balance
								34 19 4 - 1 58

Compared with general non-related party transactions, there is no significant difference in the lease transactions between the Company and its related parties. 15) Others

• (1) As of December 31, 2021 and 2020, the related parties provided the assets below as collateral for the Company’s loans and guarantees:

Relatedpartycategory/name Substantive related party Lin Rong Shian et al. Subsidiaries	December 31,2021 Securities Buildings and land in Beitou District, Taipei City, and securities	December 31,2020
		Securities Buildings and land in Beitou District, Taipei City, and securities

• (2) The Company applied to banks for borrowings, short-term bills payable, and performance guarantee, with subsidiaries and substantive related party Lin Rong Shian et al. as the joint guarantors.

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• (3) As of December 31, 2021, KaGaYa issued a guarantee note of $60,000

thousand for leasing a hot spring hotel from the Company.

(III) Disposal of investment properties

Related party category/name Jing-Jan		Proceeds from disposal 2021 2020 $ - $ 2,363,428	Proceeds from disposal 2021 2020 $ - $ 2,363,428		Gain on disposal(Note)	Gain on disposal(Note)	Gain on disposal(Note)
		2021 $ -			2021 $ -		2020
							$ 1,125,329

Note: It is recognized in deferred credits - gains between associates.

• (IV) Borrowings from related parties (recognized in other payables to related parties)

Relatedpartycategory/name Titan Jing-Jan Hldg Li- Chiang Relatedpartycategory/name Interest expenses Titan Li- Chiang Jing-Jan Hldg Subsidiaries	December 31,2021 $ 200,000 180,000 - $ 380,000 2021 $ 6,076 1,434 1,224 - $ 8,734	December 31,2020	December 31,2020
			$ 180,000 340,000 110,000 $ 630,000 2020
			$ 187 2,305 2,370 4 $ 4,866

The borrowing interest rate of the Company's borrowings from related parties is equivalent to the market interest rate. All borrowings from related parties are unsecured ones.

• (V) Endorsements and Guarantees

Endorsements and guarantees provided by the Company

Related party category/name Subsidiaries Amount of guarantees Actual amount borrowed	December31,2021 $ 17,810,425 $ 17,810,425	December31,2020	December31,2020
			$ 16,524,845 $ 16,524,845

Endorsement s and Guarantees given by related parties

Relatedpartycategory/name Subsidiaries Amount of guarantees Actual amount borrowed	December31,2021 $ 3,186,000 $ 3,186,000	December31,2020	December31,2020
			$ 4,371,000 $ 4,371,000

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(VI) Remuneration of key management personnel

The remuneration of directors and other key management personnel in 2021 and

2020 is as follows:

2020 is as follows:
Short-term employee benefits Post-employment benefits Total		2021 $ 43,687 932 $ 44,619		2020
				$ 52,255 1,048 $ 53,303

The remuneration of directors and key management personnel is proposed by the remuneration committee in accordance with individual performance and the Company’s profitability, and then submitted to the board of directors for discussion and decision. For detailed information on the total remuneration paid to the abovementioned key management personnel, please refer to the annual report of the shareholders’ meeting.

29. Pledged assets

The assets below have been provided as collateral for the escrow, bank loans, and short-term bills payable:

short-term bills payable:
Financial assets at amortized cost -current Financial assets at amortized cost -non-current Buildings and land held for sale Property to be developed Property under development Investment properties Property, plant and equipment Investments accounted for using equity method	December 31,2021 $ 662,511 1,679,170 5,055,743 316,757 1,224,506 6,097,686 97,503 7,592,460 $ 22,726,336	December 31,2020
			$ 8,424 2,248,075 6,027,294 497,981 843,886 6,253,436 100,058 8,368,093 $ 24,347,247

30. Significant Commitments and Contingencies

Except for other notes, the significant commitments and contingencies of the Company at the end of the reporting period are as follows:

• (I) In December 2001, the Company signed an Investment Agreement of the Xindian Depot Joint Development, Xindian Line (MRT) with the Taipei City Government. Both parties discussed matters related to the joint development (Mehas Project) at the Xindian factory base of the Xindian Line of the MRT system. It was agreed that the Taipei City Government and other landlords would provide the land, and

• 65 -

the Company would invest in the construction of residential buildings, offices, and shopping malls. As of December 31, 2021 and 2020, the amount of the performance bond paid by the Company using certificates of time deposits was both $118,703 thousand.

(II)

(III)

In December 2009, the Company signed the Land Development Investment Agreement for Daqiao Elementary Station, Xinzhuang Line (MRT). It was agreed that the Taipei City Government and other landlords would provide the land and the Company would invest in the construction of buildings. The Company and each landlord shall allocate the rights and interests in accordance with the agreed method. As of December 31, 2021 and 2020, the amount of the performance bond paid by the Company's using certificates of time deposits was both $21,336 thousand.

The Company won the bid for the “District 1 and District 2 Land Tender for FuJou Affordable Housing Project Investment Plan” in September 2011. As of December 31, 2021 and 2020, the amount of the performance bond paid by the Company's using certificates of time deposits was both $29,877 thousand.

Some of the buyers of the Company’s first-floor units of the Fu-Jou Affordable Housing Project in Banciao filed a lawsuit for the termination of the sale and purchase contract. The Company has reached a settlement with most of the buyers who filed a lawsuit. There is currently only one lawsuit (one buyer) still on trial in the court of first instance. Some of the buyers filed lawsuits claiming the Company was late in notifying the date of the house handover and requested interest. At present, a lawsuit is under trial in the first-instance court; two lawsuits are abandoned by the Supreme Court pending retrial by the High Court; and one lawsuit is under trail in the third-instance court.

(IV) The Company and Ji-Shun and the Taichung City Government signed the” The Land Development Project of WuRi WenXin BeiTun Line G6 and G8a Station of TaiChung Mass Rapid Transit Systems” in December 2021. As of December 31, 2020, the Company has paid the performance bond for the Taichung City Government Wenxin Chongde Station (G6) and Wenxin Yinghua Station (G8a) project in the amount of $5,165 thousand and $4,087 thousand, respectively. (V) The Company entered into a Commissioning Contract for New Urban Renewal Project Executor for 25 lots (formerly 28 lots) of land at 2 sections of Gongyuan Section, Zhongzheng District, Taipei City with Cathay United Bank in May 2021.

• 66 -

The allocation of related rights and interests of the entire project are handled by means of a rights exchange in accordance with the Urban Renewal Act as of December 31, 2021, the amount of the performance guarantee issued by the bank as the performance bond was $60,000 thousand.

(VI) The Company and Ji-Shun and the Taichung City Government signed the” The Land Development Project of WuRi WenXin BeiTun Line Station NanTun Station (G11) of Taichung Mass Rapid Transit Systems” in September 2021. As of December 31, 2021, the amount of the performance bond paid by the Company using certificates of time deposits was $7,042 thousand.

(VII) As of December 31, 2021, the Company entered into a construction contract with Titan for the construction of buildings. The total contract price was $2,164,095 thousand, and the unpaid amount was $2,003,451 thousand.

31. Capital management

The Company must maintain a large amount of capital to meet the needs for new construction projects and other relevant projects. Therefore, the Company’s capital management aims to ensure that it has the necessary financial resources and operating plans to support the needs for working capital, capital expenditures, debt repayment, and dividend payments required for the next operating cycle.

In order to meet the capital needs during the construction period, the Company responds to the needs with loans from financial institutions and its own funds, resulting in a debt ratio that is relatively higher than the general industry level. However, after the completion of the construction project, handover of the project, and repayment of loans from financial institutions, the debt ratio will decrease significantly. In order to avoid the potential market risk arising from the Company's over-reliance on the borrowings from financial institutions, and to appropriately control the Company's interest expenses, the Company will use financing devices in the capital market in a timely manner to adjust the debt ratio and the proportions of the capital structure.

32. Financial instruments

• (I) Fair value—financial instruments not at fair value

  • The Company’s management believes that the carrying amount of the

• Company’s financial assets and liabilities measured not at fair value is close to their fair value.

• (II) Fair value—financial instruments at fair value on a recurring basis

• 67 -

1) Fair value hierarchy

December 31, 2021

December 31, 2021
Financial assets at FVTPL Fund beneficiary certificates Financial assets at FVTOCI Investment in equity instruments - Domestic unlisted shares December 31, 2020		Level 1		Level 2		Level 3		Total
		$ 8,694 $ - Level 1		$ - $ - Level 2		$ - $ 5,100 Level 3		$ 8,694 $ 5,100 Total
Financial assets at FVTPL Fund beneficiary certificates Financial assets at FVTOCI Investment in equity instruments - Domestic unlisted shares
		$ 2,969 $ -		$ - $ -		$ - $ 5,100		$ 2,969 $ 5,100

December 31, 2020

There were no transfers between Level 1 and Level 2 fair value measurements as of December 31, 2021 and 2020.

• 2) Valuation techniques and inputs applied for Level 3 fair value measurement

Domestic unlisted equity investment is based on the asset method to evaluate the total value of individual assets and individual liabilities covered by the target in the valuation to reflect the overall value of a company or business. Significant unobservable inputs include liquidity discounts. When these

unobservable inputs decrease, the fair value of such investments will increase.

(III) Categories of financial instruments

Categories of financial instruments
Financial assets Financial assets at FVTPL Mandatorily at FVTPL Financial assets at amortized cost (Note 1) Financial assets at FVTOCI Investment in equity instruments Financial liabilities Guarantee deposits received (Note 2) Financial liabilities at amortized cost (Note 3)	December 31,2021 $ 8,694 3,064,824 5,100 19,627 22,524,525	December 31,2020
		$ 2,969 3,783,722 5,100 17,962 23,305,325

• 68 -

• Note 1: The balances include financial assets measured at amortized cost, which comprise cash and cash equivalents, notes receivable, trade receivables, other receivables, and refundable deposits.

• Note 2: The balances include guarantee deposits received recognized in other current liabilities and non-current liabilities.

• Note 3: The balances include financial liabilities measured at amortized cost, which comprise short-term borrowings, short-term bills payable, notes payable, trade payables, other payables, long-term liabilities maturing within one year or one business cycle, bonds maturing or exercising buyback rights within one year or one business cycle, and bonds payable, bonds payable, and long-term borrowings.

• (IV) Financial risk management objective and policies

The Company's main financial instruments include investments in equity and debt instruments, trade receivables, trade payables, bonds payable, and borrowings. The Company's financial management department provides services to various business units, coordinates the operations in the domestic and international financial markets, and supervises and manages the financial risks related to the Company's operations through the internal reports on risk exposure analyses based on the degree and breadth of risks. These risks include market risk, credit risk, and liquidity risk.

• 1) Market risk

The main financial risk for the Company’s operating activities are the risk of changes in interest rates. Because the entities in the Company borrow funds at fixed and floating interest rates at the same time, leading to exposure to the interest rate risk. The Company manages interest rate risk by maintaining an appropriate combination of fixed and floating interest rates. The Company regularly evaluates hedging activities to align them with the interest rate view and established risk preferences to ensure that the most cost-effective hedging strategy is adopted.

The carrying amounts of the financial assets and financial liabilities of the Company exposed to the interest rate risk at the end of the reporting period are as follows:

• 69 -

Fair value interest rate risk -Financial assets -Financial liabilities Cash flow interest rate risk -Financial assets -Financial liabilities	December 31,2021 $ 140,785 8,478,104 2,798,428 12,330,408	December 31,2020
		$ 140,753 6,119,855 3,549,971 15,318,598

Sensitivity analysis

The sensitivity analysis below is determined based on the exposure to the interest rate risk of derivative and non-derivative instruments at the end of the year. For liabilities with floating interest rates, the analysis method is based on the assumption that the amount of liabilities outstanding at the end of the year is outstanding throughout the reporting period. The sensitivity to a 100-basis point change in interest rate is used when reporting the interest rate risk internally to key management personnel and also represents the management’s assessment of the reasonably possible change in interest rates.

If the interest rate increased by 100 basis points and all other variables remain unchanged, the Company’s net income before tax for 2021 and 2020 would have decreased by $95,320 thousand and $117,686 thousand, respectively, mainly because of the variable interest rate of the Company’s borrowings.

The Company’s sensitivity to interest rates rose during the current period, mainly due to the increase in liabilities at variable interest rates.

• 2) Credit risk

The Company’s main potential credit risk arise from financial products, such as cash in banks, notes receivable, and trade receivables. The Company’s cash is deposited in different financial institutions, and the transaction counterparties are financial institutions with good credit ratings, so it is expected that no significant credit risk will arise. The Company controls the credit risk exposed to each financial institution, and believes that its cash in banks is no significant credit risk of concentration of certain banks. In order to reduce the credit risk of trade receivables, the Company continuously evaluates customers’ financial position, and regularly evaluates the possibility of the

• 70 -

recovery of trade receivables and provides allowances for bad debts, so the possibility of occurrence of the credit risk is extremely low.

• 3) Liquidity risk

The Company manages and maintains sufficient cash and cash equivalents to support its operations and mitigate the impact of cash flow fluctuations. The management of the Company monitors the use of the bank financing facilities and ensures compliance with the terms of the borrowing terms.

As of December 31, 2021 and 2020, the undrawn financing facilities (including financing projects) of the Company were $1,276,200 thousand and $2,652,400 thousand, respectively.

Liquidity and interest rate risk tables for non-derivative financial liabilities

The remaining contractual maturity analysis of non-derivative financial liabilities was based on the earliest date at which the Company might be required to repay and was compiled based on the undiscounted cash flows of financial liabilities (including principal and estimated interest). Therefore, the bank borrowings with a repayment on demand clause were included in the earliest time period in the table below, regardless of the probability of exercise of the right by banks. The maturity analysis of other non-derivative financial liabilities was compiled in accordance with the agreed repayment date.

For interest cash flows paid at floating interest rates, the undiscounted amount of interest is derived from the yield curve at the end of year.

December 31, 2021

Non-derivative financial liabilities Non-interest- bearing liabilities Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities	On demand or less than 1 month $ 152,968 9,996 231,570 745,100 $1,139,634	1–3 months $ 92,859 19,991 144,344 1,120,300 $1,377,494	3 months to 1year	3 months to 1year	1-5years $ 512,933 79,165 5,095,816 4,620,000 $10,307,914		Over 5 years
				$ 914,907 89,139 6,622,299 1,994,800 $9,621,145			$ - - 242,129 -
							$ 242,129

• 71 -

Further information on the analysis of lease liabilities maturity is as follows:

follows:
Less than 1 Year 1-5 years5-10 years 10-15 years Lease liabilities$119,126 $ 79,165 $ - $ December 31, 2020 On demand or less than 1 month 1–3 months 3 months to 1year Non-derivative financial liabilities Non-interest- bearing liabilities $ 123,633 $ 3,913 $ 853,293 Lease liabilities 9,643 18,695 82,535 Variable interest rate liabilities 603,250 694,062 2,785,226 Fixed interest rate liabilities - - - $ 736,526 $ 716,670 $3,721,054	Less than 1 Year			1-5 years	5-10 years				10-15 years			15-20 years		Over 20 years
									$	-				$ - Over 5 years
Non-derivative financial liabilities Non-interest- bearing liabilities Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities
							$ 853,293 82,535 2,785,226 - $3,721,054							$ 120 - 534,000 -
														$ 534,120

Further information on the analysis of lease liabilities maturity is as

follows:

follows:
Lease liabilities	Less than 1 Year			1-5 years	5-10 years			10-15 years		15-20 years		Over 20 years
		$110,873		$176,138		$ -		$ -		$ -		$ -

33. Separately disclosed items

• (I) Information on significant transactions in the current year and (II) Information on investees:

• Financing provided to others: Table 1.

• Endorsements/Guarantees provided: Table 2.

• Marketable securities held at the end of period: Table 3.

• Marketable securities acquired or disposed of at costs or prices at least NT$300 million or 20% of the paid-in capital: Table 4.

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

• Disposal of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital: None.

• 72 -

• Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 5.

• Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 6.

• Trading in derivative instruments: None.

• Information on investees: Table 7

• (II) Information on investments in Mainland China

• Information on any investee in mainland China, showing the name, principal business activities, paid-in capital, method of investment, inward and outward remittance of funds, ownership percentage, current income or loss and investment income or loss recognized, carrying amount of the investment at the end of the period, repatriations of investment income, and limit on the amount of investment in the mainland China area: Table 8.

• Any of the following significant transactions with investees in mainland China, either directly or indirectly through a third party, and their prices, payment terms, and unrealized gains or losses: None.

• (III) Information of major shareholders: List of all shareholders with ownership of 5 percent or greater showing the names and the number of shares and percentage of ownership held by each shareholder: Table 9.

• 73 -

Table 1

Radium Life Tech Co., Ltd. and Investees

Financing Provided to Others For the Year ended December 31, 2021

(In Thousands of New Taiwan Dollars)

No.	Lender	Borrower	Financial Statement Account	Related Party	Highest Balance for the Period	Ending Balance	Actual Amount Borrowed	Interest Rate	Nature of Financing	Business Transaction Amount	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral	Collateral	Financing Limit for Each Borrower (Note 1)	Aggregate Financing Limit (Note 1)
													Item	Value
1 1 1 1 1 2 2 2 3 3 3 3 3 4 4 5 5 5 6 7	Titan Development and Construction Co., Ltd. Titan Development and Construction Co., Ltd. Titan Development and Construction Co., Ltd. Titan Development and Construction Co., Ltd. Titan Development and Construction Co., Ltd. Radium Far East Co., Ltd. Radium Far East Co., Ltd. Radium Far East Co., Ltd. Jing-Jan Investment Holdings Co., Ltd. Jing-Jan Investment Holdings Co., Ltd. Jing-Jan Investment Holdings Co., Ltd. Jing-Jan Investment Holdings Co., Ltd. Jing-Jan Investment Holdings Co., Ltd. Li Chiang Development Co., Ltd. Li Chiang Development Co., Ltd. Rih Siang Property Management Co., Ltd. Rih Siang Property Management Co., Ltd. Rih Siang Property Management Co., Ltd. Ji Sheng Zih Chan Development Co., Ltd. PritBiotech Co., Ltd.	Wan Da Tong Enterprise Co., Ltd. Radium-Kagaya International Hotel Co., Ltd. Ji Shun Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Rih Ding Water Enterprise Co., Ltd. Wan Da Tong Enterprise Co., Ltd. Zhao Yao Enterprise Co., Ltd. Rih Yao Development Co., Ltd. Radium Life Tech Co., Ltd. Ji Shun Life Tech Co., Ltd. Rih Ding Water Enterprise Co., Ltd. Rih Zuan Green Energy Technology Co., Ltd. Zhao Yao Enterprise Co., Ltd. Radium Life Tech Co., Ltd. Ji Shun Life Tech Co., Ltd. Ji Shun Life Tech Co., Ltd. Wan Da Tong Enterprise Co., Ltd. Rih Yao Development Co., Ltd. Rih Yao Development Co., Ltd. Wan Da Tong Enterprise Co., Ltd.	Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties Other receivables from related parties	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes	$ 340,000 20,000 190,000 380,000 260,000 120,000 10,000 10,000 500,000 400,000 150,000 30,000 100,000 130,000 80,000 120,000 310,000 150,000 20,000 70,000	$ 100,000 - - 350,000 50,000 60,000 - 10,000 500,000 300,000 - 10,000 - - 80,000 - 190,000 100,000 10,000 40,000	$ 50,000 - - 200,000 - 60,000 - 10,000 180,000 50,000 - 10,000 - - 60,000 - 160,000 40,000 10,000 40,000	2.6000%-5.3500% 2.3500%-5.3500% 2.3500%-5.3500% 4.4140%-5.3500% 4.4140% 2.9880%-3.2880% 2.9880%-3.2880% 2.9880%-3.2880% 0.7550% 0.7550% 0.7550% 0.7550% 0.7550% 2.4500%-2.8500% 2.4500% 2.6797%-2.7525% 2.3291%-2.7525% 2.3291%-2.9440% 0.1750%-0.3593% 1.2550%	Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing Short-term financing	$ - - - - - - - - - - - - - - - - - - - -	Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital Operating capital	$ - - - - - - - - - - - - - - - - - - - -	None None None None None None None None None None None None None None None None None None None None	$ - - - - - - - - - - - - - - - - - - - -	$ 734,807 734,807 734,807 734,807 734,807 167,691 167,691 167,691 2,266,457 2,266,457 2,266,457 2,266,457 2,266,457 190,476 190,476 767,562 767,562 767,562 32,460 61,433	$ 734,807 734,807 734,807 734,807 734,807 167,691 167,691 167,691 2,266,457 2,266,457 2,266,457 2,266,457 2,266,457 190,476 190,476 767,562 767,562 767,562 32,460 61,433

Note 1: The Company’s and its subsidiaries’ cumulative balance of financing provided and the total amount of financing provided to the same borrower shall not exceed 40% of the net worth of each company as stated in most recent financial statements verified by CPAs.

• 74 -

Table 2

Radium Life Tech Co., Ltd. and Investees

Endorsements/Guarantees Provided

For the Year ended December 31, 2021

(In Thousands of New Taiwan Dollars)

No.	Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limit on Endorsement /Guarantee Given on Behalf of Each Party (Note 1)	Maximum Amount Endorsed/Guaranteed During the Period	Outstanding Endorsement/Guarantee at the End of the Period	Actual Amount Borrowed	Amount Endorsed/Guaranteed by Collateral	Ratio of Accumulated Endorsement/ Guarantee to Net Equity in Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note 2)	Endorseme nt/Guarante e Given by Parent on Behalf of Subsidiaries	Endorseme nt/Guarante e Given by Subsidiaries on Behalf of Parent	Endorsement/G uarantee Given on Behalf of Companies in Mainland China
		Company name	Relationship
0 0 0 0 0 0 0 0 0 0 1 2 3 4 5	Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Ji Shun Life Tech Co., Ltd. Xin Xiu Ge Hotel Co., Ltd. Titan Development and Construction Co., Ltd. Jing-Jan Investment Holdings Co., Ltd. Li Chiang Development Co., Ltd.	Titan Development and Construction Co., Ltd. Rih Yao Development Co., Ltd. Xin Xiu Ge Hotel Co., Ltd. Rih Ding Water Enterprise Co., Ltd. Rih Siang Property Management Co., Ltd. Zhao Yao Enterprise Co., Ltd. Ji Shun Life Tech Co., Ltd. Radium-Kagaya International Hotel Co., Ltd. Wan Da Tong Enterprise Co., Ltd. Rih Zuan Green Energy Technology Co., Ltd. Ji Sheng Zih Chan Development Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd.	Subsidiary in which at least 50% of equity is held Subsidiary in which at least 50% of equity is held Subsidiary in which at least 50% of equity is held Sub-subsidiary company in which at least 50% of equity is held Subsidiary in which at least 50% of equity is held Subsidiary in which at least 50% of equity is held Subsidiary in which at least 50% of equity is held Subsidiary in which at least 50% of equity is held Subsidiary in which at least 50% of consolidated equity is held Subsidiary in which at least 50% of equity is held Subsidiary in which at least 50% of equity is held Parent company in which at least 50% of equity is held Parent company in which at least 50% of equity is held Parent company in which at least 50% of equity is held Parent company in which at least 50% of equity is held	$ 33,498,999 33,498,999 33,498,999 33,498,999 33,498,999 33,498,999 33,498,999 33,498,999 33,498,999 33,498,999 2,527,880 123,643 5,511,052 16,998,425 1,428,571	$ 1,469,000 904,250 88,000 17,030,000 1,982,350 1,836,000 2,297,865 130,000 475,260 58,000 268,000 120,000 1,066,000 3,135,000 50,000	$ 860,000 904,250 88,000 9,820,000 1,826,000 1,836,000 1,903,215 50,000 475,260 47,700 134,000 120,000 186,000 2,880,000 -	$ 860,000 904,250 88,000 9,820,000 1,826,000 1,836,000 1,903,215 50,000 475,260 47,700 134,000 120,000 186,000 2,880,000 -	$ 300,000 - - - - - - - - - 81,711 302 186,000 2,880,000 -	7.70% 8.10% 0.79% 87.94% 16.35% 16.44% 17.04% 0.45% 4.26% 0.43% 15.90% 291.16% 10.13% 50.83% -	$ 66,997,998 66,997,998 66,997,998 66,997,998 66,997,998 66,997,998 66,997,998 66,997,998 66,997,998 66,997,998 5,055,759 247,286 11,022,104 33,996,849 2,857,142	Y Y Y Y Y Y Y Y Y Y N N N N N	N N N N N N N N N N N Y Y Y Y	N N N N N N N N N N N N N N N

Note 1: The amount of the Company's or its subsidiaries' endorsements/guarantees to a single enterprise is limited to 3 times the net worth of each company as stated in most recent financial statements verified by CPAs.

Note 2: The total amount of endorsements/guarantees by the Company or its subsidiaries is limited to not more than 6 times the net worth of each company as stated in most recent financial statements verified by CPAs.

• 75 -

Table 3

Radium Life Tech Co., Ltd. and Investees

Marketable Securities Held

December 31, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Holding Company Name	Type and Name of Marketable Securities	Relationship with Holding Company	Financial Statement Account		EndingBalance	EndingBalance		Note
				Number of Shares or Units (in Thousands)	Carrying Amount	Percentage of Ownership (%)	Fair Value
Radium Life Tech Co., Ltd. Titan Development and Construction Co., Ltd. PritBiotech Co., Ltd. PritBiotech Co., Ltd. PritBiotech Co., Ltd. Radium Far East Co., Ltd. Ji Shun Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Jing-Jan Retail Business Co., Ltd.	Stock Linkou Recreation Enterprise Co., Ltd. Stock Xantia Corporation Stock Tsinghua Life Technology Co., Ltd. Stock Deyang Biotechnology Venture Capital Co., Ltd. Stock Shih Jui Biotech Corp. Ltd. Stock Mega Growth Venture Capital Co., Ltd. Fund Mega Danish Covered Mortgage Bond Index Fund Fund TCB US Short Duration High Yield Bond Fund Fund Taishin ESG Emerging Markets Bond Fund Fund KGI ESG Sustainable Emerging Market Bond Fund Fund Taiwan Business Bank Eastspring Investments India Bond Fund	None None None None None None None None None None None	Financial assets at FVTOCI - Non-current Financial assets at FVTOCI - Non-current Financial assets at FVTOCI - Non-current Financial assets at FVTOCI - Non-current Financial assets at FVTOCI - Non-current Financial assets at FVTOCI - Non-current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current Financial assets at FVTPL - current	- 55 3 118 50 5,000 500 300 300 300 500	$ 5,100 - 139 1,434 - 50,560 4,706 2,997 2,752 2,944 4,930	- 0.07% 2.50% 3.70% 16.67% 3.94% - - - - -	$ 5,100 - 139 1,434 - 50,560 4,706 2,997 2,752 2,944 4,930

Note 1: Refer to Tables 8 and 9 for the information on subsidiaries and associates.

• 76 -

Table 4

Radium Life Tech Co., Ltd. and Investees

Marketable Securities Acquired or Disposed of at Costs or Prices at Least NT$300 Million or 20% of the Paid-in Capital

For the Year ended December 31, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Company Name	Type and Name of Marketable Securities	Financial Statement Account	Counterparty	Relationship	BeginningBa	lance	Acquisition	Acquisition		Disposal	Disposal		Others		EndingBala	nce
					Number of Shares (in Thousands)	Amount	Number of Shares (in Thousands)	Amount	Number of Shares (in Thousands)	Amount	Carrying Amount	Gains / Losses on Disposal	Number of Shares (in Thousands)	Amount	Number of Shares (in Thousands)	Amount
Radium Life Tech Co., Ltd.	Stock Rih Ding Circular Economy Investment Holding Co., Ltd.	Investments accounted for the equity method	Rih Ding Circular Economy Investment Holding Co., Ltd.	Subsidiary	63,500	$5,713,974	4,800	$450,336 (Note 2)	-	$ -	$ -	$ -	-	$135,556 (Note 3)	68,300	$6,299,866

Note 1: The securities mentioned in this table refer to stocks, bills, beneficiary certificates, and securities derived from the items above.

Note 2: It is the issuance of ordinary shares in the current period.

Note 3: It is the share of comprehensive income recognized by the company using the equity method of $690,556 thousand and cash dividends of $555,000 thousand.

• 77 -

Table 5

Radium Life Tech Co., Ltd. and Investees

Total Purchases from or Sales to Related Parties Amounting to at Least NT$100 Million or 20% of the Paid-in Capital For the Year ended December 31, 2021

(In Thousands of New Taiwan Dollars)

Buyer/Seller	Related Party	Relationship	Transaction Details(Note 1)	Transaction Details(Note 1)	Transaction Details(Note 1)		Abnormal	Transaction	Note/Trade receivables(Payable)	Note/Trade receivables(Payable)	Note
			Purchase/Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	EndingBalance	% of Total
Radium Life Tech Co., Ltd. Titan Development and Construction Co., Ltd. Titan Development and Construction Co., Ltd. Titan Development and Construction Co., Ltd. Wan Da Tong Enterprise Co., Ltd. Rih Ding Water Enterprise Co., Ltd. Ji Shun Life Tech Co., Ltd. Ding Sheng Green Energy Technology Co., Ltd.	Titan Development and Construction Co., Ltd. Rih Ding Water Enterprise Co., Ltd. Ji Shun Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Jing-Jan Retail Business Co., Ltd. Titan Development and Construction Co., Ltd. Titan Development and Construction Co., Ltd. Rih Ding Water Enterprise Co., Ltd.	Subsidiary Associate Associate Parent company Associate Associate Associate Associate	Construction costs Sales Sales Sales Sales Construction costs Construction costs Sales	$ 155,227 ( 473,056 ) ( 382,295 ) ( 271,735 ) ( 498,296 ) 699,103 467,252 ( 123,771 )	100.00% ( 37.88% ) ( 30.62% ) ( 21.76% ) ( 61.61% ) 95.61% 100.00% ( 100.00% )	As agreed in contract As agreed in contract As agreed in contract As agreed in contract As agreed in contract As agreed in contract As agreed in contract As agreed in contract	- - - - - - - -	－ － － － － － － －	( $ 318,726 ) 115,790 50,643 72,786 30 ( 442,110 ) ( 157,322 ) 31,426	( 92.08% ) 48.40% 21.17% 30.43% 4.39% ( 89.29% ) ( 97.03% ) 100.00%

Note 1: Since there was no relevant identical transaction to follow for the unit price of purchases from and sales to related parties, the transaction conditions were negotiated and determined by both parties.

• 78 -

Table 6

Radium Life Tech Co., Ltd. and Investees

Receivables from Related Parties Amounting to at Least NT$100 million or 20% of the Paid-in Capital December 31, 2021

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationship	Ending Balance	Turnover Rate	Overdue	Overdue	Amounts Received Subsequent Period	Allowance for Impairment Loss	Note
					Amount	Actions Taken
Titan Development and Construction Co., Ltd. Titan Development and Construction Co., Ltd. Rih Siang Property Management Co., Ltd. Jing-Jan Investment Holdings Co., Ltd.	Radium Life Tech Co., Ltd. Rih Ding Water Enterprise Co., Ltd. Wan Da Tong Enterprise Co., Ltd. Radium Life Tech Co., Ltd.	Parent company Associate Associate Parent company	$ 200,000 115,790 160,000 180,000	- 1.93 - -	$ - - - -	－ － － －	$ - 62,084 - -	$ - - - -	As of January 28, 2022 (Note 1) As of January 28, 2022 As of January 28, 2022 (Note 1) As of January 28, 2022 (Note 1)

Note 1: Other receivables.

• 79 -

Table 7

Radium Life Tech Co., Ltd. and Investees

Information on Investees

For the Year ended December 31, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	As of December 31,2021	As of December 31,2021	As of December 31,2021	Net Income (Loss) of the Investee	Share of profit (loss)	Note
				December 31,2021	December 31,2020	Number of Shares (in Thousands)	Percentage (%)	Carrying Amount
Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd.	Ji Shun Life Tech Co., Ltd. Li Chiang Development Co., Ltd. Rih Yao Development Co., Ltd. Radium Far East Co., Ltd. Titan Development and Construction Co., Ltd. Wan Da Tong Enterprise Co., Ltd. Radium-Kagaya International Hotel Co., Ltd. Zhao Yao Enterprise Co., Ltd. CLEVER BASE INVESTMENTS LIMITED Xin Xiu Ge Hotel Co., Ltd. Jing-Jan Investment Holdings Co., Ltd. Rih Siang Property Management Co., Ltd. Rih Zuan Green Energy Technology Co., Ltd. Wan Tong Digital TechnologyCo.,Ltd.	13F, No. 209, Section 1, Civic Boulevard, Taipei City 13F, No. 209, Section 1, Civic Boulevard, Taipei City 13F, No. 209, Section 1, Civic Boulevard, Taipei City 5F–2, No. 270, Section 4, Zhongxiao East Road, Taipei City 5F–2, No. 270, Section 4, Zhongxiao East Road, Taipei City 13F, No. 209, Section 1, Civic Boulevard, Taipei City No. 236, Guangming Road, Beitou District, Taipei City, Taiwan 3F-11F. No. 23, Lane 27, Section 4, Ren'ai Road, Daan District, Taipei City; No. 25, 3F-11F. No. 25, Lane 27, Section 4, Ren'ai Road, Daan District, Taipei City; 2F- 14F. No. 237 Lane 27, Section 4, Ren'ai Road, Daan District, Taipei City Vistra Corporate Services Contre, Ground Floor NPF Building, Beach Road, Asia , Samoa No. 238, Guangming Road, Beitou District, Taipei City, Taiwan 13F, No. 209, Section 1, Civic Boulevard, Taipei City 14F, No. 209, Section 1, Civic Boulevard, Taipei City 14F, No. 209, Section 1, Civic Boulevard, Taipei City 14F, No. 209, Section 1, Civic Boulevard,Taipei City	Housing and Building Development and Rental Housing and Building Development and Rental Housing and Building Development and Rental Housing and Building Development and Rental Civil engineering and construction Development of the T9 land in the dedicated area of the Taipei Main Station Hot Spring Hotel Housing and Building Development and Rental Investment Hotel Investment Housing and Building Development and Rental Energy Technical Services Retail	$ 318,000 1,000,000 950,000 1,113,455 968,650 1,248,666 953,363 2,350,000 - 421,500 3,039,339 2,300,000 40,500 -	$ 318,000 1,000,000 950,000 1,113,455 968,650 1,248,666 953,363 2,350,000 USD 2,080 421,500 3,039,339 2,300,000 40,500 27,000	70,000 100,000 95,000 38,773 120,000 148,000 15,000 235,000 - 125 91,590 230,000 4,050 -	100.00% 100.00% 100.00% 99.93% 100.00% 28.35% 100.00% 100.00% - 100.00% 61.06% 100.00% 90.00% -	$ 843,480 476,190 683,172 603,597 1,178,354 1,764,916 114,459 1,422,078 - 320,127 3,582,214 1,918,905 44,650 -	$ 126,957 ( 43,990 ) ( 65,286 ) ( 18,993 ) 34,315 219,934 ( 755 ) ( 41,701 ) ( 324 ) ( 3,791 ) 200,954 ( 13,395 ) 2,678 ( 1,202 )	$ 126,988 ( 43,990 ) ( 65,286 ) ( 18,979 ) 38,306 62,355 ( 448 ) ( 41,701 ) ( 324 ) ( 4,296 ) 153,286 ( 13,394 ) 2,561 ( 1,081 )	Subsidiary (Note 1) Subsidiary (Note 1) Subsidiary (Note 1) Subsidiary (Notes 1 & 2) Subsidiary (Note 1) Subsidiary (Notes 1 & 3) Subsidiary (Note 1) Subsidiary (Note 1) Subsidiary (Notes 1 & 7) Subsidiary (Note 1) Subsidiary (Notes 1 & 10) Subsidiary (Note 1) Subsidiary (Note 1) Subsidiary (Notes 1 & 8)

(Continued)

• 80 -

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	As of December 31,2021	As of December 31,2021	As of December 31,2021	Net Income (Loss) of the Investee	Share of profit (loss)	Note
				December 31,2021	December 31,2020	Number of Shares (in Thousands)	Percentage (%)	Carrying Amount
Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Titan Development and Construction Co., Ltd. Ji Shun Life Tech Co., Ltd. Ji Shun Life Tech Co., Ltd. Jing-Jan Investment Holdings Co., Ltd. Jing-Jan Investment Holdings Co., Ltd. Jing-Jan Retail Business Co., Ltd. CLEVER BASE INVESTMENTS LIMITED Radium Far East Co., Ltd. Rih Ding Circular Economy Investment Holding Co., Ltd. Rih Ding Circular Economy Investment Holding Co., Ltd. Ding Sheng Green Energy TechnologyCo.,Ltd.	Rih Ding Circular Economy Investment Holding Co., Ltd. Jing Ding Green Energy Technology Co., Ltd. Jing-Jan Investment Holdings Co., Ltd. Ji Sheng Zih Chan Development Co., Ltd. Jing-Yang Apartment Building Management and Maintenance Co., Ltd. Jing-Jan Retail Business Co., Ltd. Wan Da Tong Enterprise Co., Ltd. Jing-Jan Digital Square Co., Ltd. Rih Ding Investments Limited PritBiotech Co., Ltd. Rih Ding Water Enterprise Co., Ltd. Ding Sheng Green Energy Technology Co., Ltd. Jing Ding Green Energy TechnologyCo.,Ltd.	14F, No. 209, Section 1, Civic Boulevard, Datong District, Taipei City No. 76, Pinghe 1st Street, Changhua City, Changhua County 13F, No. 209, Section 1, Civic Boulevard, Taipei City 13F, No. 209, Section 1, Civic Boulevard, Taipei City 10F-1, No. 106, Section 6, Roosevelt Road, Wenshan District, Taipei City No. 1, Section 1, Chengde Road, Taipei City 13F, No. 209, Section 1, Civic Boulevard, Taipei City 4F No. 1, Section 1, Chengde Road, Datong District, Taipei City 15/F., BOC Group Life Assurance Tower, 136 Des Voeux Road Central, Central, Hong Kong 3F-1, No.50, Lane 462, Gongyi Road, Zhunan Town, Miaoli County No. 177, Section 1, Fuhua Road, Luzhu District, Taoyuan City 14F, No. 209, Section 1, Civic Boulevard, Taipei City No. 76, Pinghe 1st Street, Changhua City,Changhua County	Investment Energy Technical Services Investment Housing and Building Development and Rental Condominium buildings management service Shopping mall business Development of the T9 land in the dedicated area of the Taipei Main Station Retail Investment Biotechnology and cosmetic manufacturing Investment in and construction and operation of public works construction Energy Technical Services Energy Technical Services	$ 5,547,533 7,400 1,832,017 87,000 9,800 509,201 4,295,288 50,000 - 90,000 5,027,699 49,913 6,600	$ 5,097,197 7,400 1,832,017 87,000 9,800 509,201 4,295,288 50,000 USD 30 90,000 5,027,699 49,913 6,600	$ 68,300 740 55,195 8,700 980 45,001 374,015 2,000 - 9,000 520,740 5,000 660	100.00% 37.00% 36.80% 100.00% 49.00% 75.00% 71.65% 100.00% - 37.31% 100.00% 100.00% 33.00%	$ 6,299,866 6,871 2,085,140 81,149 13,034 762,309 4,460,536 18,991 - 69,360 6,229,105 61,909 6,128	$ 690,555 ( 888 ) 200,954 ( 562 ) 6,559 55,979 219,934 1,860 - ( 24,664 ) 682,000 9,434 ( 888 )	$ 690,555 ( 329 ) 73,942 ( 562 ) 3,214 41,988 157,580 1,860 - ( 9,202 ) 682,000 9,434 ( 293 )	Subsidiary (Note 1) Subsidiary (Note 1) Subsidiary (Notes 1 & 11) Sub-subsidiary (Note 1) (Note 1) Sub-subsidiary (Note 1) Subsidiary (Note 1) Sub-subsidiary (Note 1) Sub-subsidiary (Notes 1 & 6) Sub-subsidiary (Notes 1 & 9) Sub-subsidiary (Note 1) Sub-subsidiary (Note 1) Subsidiary (Note 1)

• Note 1: It is calculated based on the investees’ financial statements audited by CPAs for the same period and the Company's shareholding ratio.

• Note 2: The accumulated impairment of $130,802 thousand has not yet been deducted from the carrying amount.

• Note 3: The unrealized gains between associates of $158,972 thousand has not yet been deducted from the carrying amount.

• Note 4: Information on investees in mainland China is detailed in Table 9.

• Note 5: Except for Jing-Yang Apartment Building Management and Maintenance Co., Ltd., the securities held above have been written off in accordance with regulations when the consolidated financial statements were prepared.

• Note 6: The deregistration of Rih-Ding Investments Limited was completed on February 25, 2021.

• Note 7: The deregistration of Clever Base was completed on June 8, 2021.

• Note 8: Wan Tong Digital registered for it dissolution on April 26, 2021 and obtained a letter of liquidation letter from the court on January 25, 2022.

• Note 9: The accumulated impairment of $12,460 thousand has not yet been deducted from the carrying amount.

• Note 10: The unrealized gains between associates of $1,127,546 thousand has not yet been deducted from the carrying amount.

• Note 11: The unrealized gains between associates of $139,118 thousand has not yet been deducted from the carrying amount.

• 81 -

Table 8

Radium Life Tech Co., Ltd. and Investees

Information on investments in Mainland China

For the Year ended December 31, 2021

(In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Investee Company	Main Businesses and Products	Main Businesses and Products	Paid-In Capital	Method of Investments	Accumulated Outward Remittance for Investment from Taiwan as of January1,2021	Accumulated Outward Remittance for Investment from Taiwan as of January1,2021	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of December31,2021	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gains (Losses) (Note 2)	Carrying Amount as of December31,2021	Accumulated Repatriation of Investment Income as of December31,2021
							Outward	Inward
LiJiang Business Consulting (Shanghai) Limited.	Business and Corporate Management ConsultingServices		$ 52,288 ( US$1,700,000 )	Note 1(1)	$ 52,288 ( US$1,700,000 )		$ -	$ -	$ 52,288 ( US$1,700,000 )	( $ 439 )	100%	( $ 439 ) (2)B	$ 2,497	$ -
						Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA $ 6,699,800 (Note 5)
Accumulated Outward Remittance for Investments in Mainland China as of December 31,2021		Investment Amount Authorized by the Investment Commission, MOEA				Upper Limit on the Amount of Investments Stipulated by the Investment Commission, MOEA
NT$56,848 (US$1,840,000) (Note 6)		NT$51,208 (US$1,850,000) (Note 4)				$ 6,699,800 (Note 5)

Note 1: Investment methods are divided into the following three types, just enter the code:

• (1) Direct investment in mainland China.

• (2) Indirect investment in mainland China through third-region companies.

• (3) Other methods.

• Note 2: In the field “Investment Gains/Losses Recognized for Current Period”

• (1) If it is under preparation and there is no investment gain or loss, it shall be indicated.

• (2) The recognition basis of investment gains and losses is divided into the following three types, which shall be indicated.

  • A. Financial statements audited and attested by any international accounting firms with partnership with any accounting firm of the Republic of China.

  • B. Financial statements audited and attested by CPAs appointed by the parent company in Taiwan.

  • C. Others.

• Note 3: The relevant figures in this table shall be presented in New Taiwan dollars.

• Note 4: The exchange rate is based on the average spot buying/selling exchange rate of the Bank of Taiwan on December 31, 2021. In addition, the limit approved by the Investment Commission is in foreign currency, and the investment amount had not exceeded the limit as of the current period.

• Note 5: It is 60% of the net equity of the Company.

Note 6: The deregistration of Wan-Da-Tong (Xiamen) Enterprise Co., Ltd. was completed on November 22, 2019, and its registered capital of US$140,000 was not remitted back to Taiwan due to losses.

• 82 -

Table 9

Radium Life Tech Co., Ltd.

Information on Major Shareholders

December 31, 2021

Name of Major Shareholder	Shares	Shares
	Number of Shares	Percentage of Ownership (%)
Lin Rong Shian CTBC Bank Co., Ltd. In custody for Verivia PCC Golden Century Co., Ltd. Ding-ShengDigital Life Co.,Ltd.	110,524,167 84,031,547 58,223,051 49,260,000	12.27% 9.33% 6.46% 5.47%

• Note 1: The major shareholders in this table are shareholders holding at least 5% of the ordinary and preference shares (including treasury shares) with dematerialized registration and delivery completed on the last business day of the quarter calculated by the Taiwan Depository & Clearing Corporation. The share capital recorded in the Company's parent company only financial statements and the number of shares actually delivered by the Company with the dematerialized registration completed may differ due to different calculation bases.

• Note 2: For the information above, where a shareholder transfers the shares to a trust, the trustor’s individual account opened by the trustee shall be disclosed. As for the insider declaration of the ownership percentage over 10% in accordance with the Securities and Exchange Act, including the shares on hand and those being put in the trust, and the right to use the trust asset, please refer to the declaration information on MOPS.

• 83 -

§Table of Contents of Statements of Significant Accounting Titles§

Item	No./Index
Statement of Assets, Liabilities and Equity Items
Statement of Cash and Cash Equivalents	Statement 1
Statement of Changes in Property Under Development	Statement 2
Statement of Other Current Assets	Note 13
Statement of Investments Accounted for Using Equity	Statement 3
Method
Statement of Changes in Property, Plant and Equipment	Note 15
Statement of Changes in Accumulated Depreciation of	Note 15
Property, Plant and Equipment
Statement of Changes in Accumulated Impairment of	Note 15
Property, Plant and Equipment
Statement of Changes in Investment Property	Note 17
Statement of Changes in Accumulated Depreciation of	Note 17
Investment Property
Statement of Changes in Accumulated Impairment of	Note 17
Investment Property
Statement of Changes in Right-of-use Assets	Statement 4
Statement of Contract Liabilities	Statement 5
Statement of Short-term Borrowings	Statement 6
Statement of Long-term Borrowings	Statement 7
Statement of Lease Liabilities	Statement 8
Statement of Profit or Loss
Statement of Operating Revenue	Statement 9
Statement of Operating Costs	Statement 10
Statement of Operating Expenses	Statement 11
Statement of Employee Benefit, Depreciation, and	Statement 12
Amortization Expenses of the Year by Function

• 84 -

Statement 1

Radium Life Tech Co., Ltd.

Statement of Cash and Cash Equivalents For the Year Ended December 31, 2021 (In Thousands of New Taiwan Dollars)

Item Cash on hand Petty cash Demand deposits Checking accounts Foreign currency deposits Total		Amount
		$ 306 1,190 418,019 1,754 8,626 $ 429,895

• 85 -

Statement 2

Radium Life Tech Co., Ltd.

Statement of Changes in Property Under Development 2021 (In Thousands of New Taiwan Dollars)

Sanzhi Project - East Side Sanzhi Project - West Side		Balance at January 1,2021 $ 843,886 $ -	Cost of Project $ 175,970 $ 303,086		Capitalized Interest $ 9,915 $ 3,976	Allowance for inventory valuation losses $ - ($ 112,327)		Balance at December 31,2021
						(		$ 1,029,771 $ 194,735

• 86 -

Statement 3

Radium Life Tech Co., Ltd.

Statement of Changes in Investments Accounted for Using Equity Method 2021

(In Thousands of New Taiwan Dollars)

Investees Ji-Shun Li-Chiang Rih-Yao Far East Titan Wan-Da-Tong KaGaYa Zhao-Yao Clever Base Xin-Xiu-Ge Jing-Jan Hldg Rih-Siang Rih-Zuan Wan-Tong Digital LiJiang (Shanghai) Rih-Ding Hldg Jing-Ding Total Less: Accumulated impairment Less: Profit or loss between associates	Balance at January1,2021 Number of Shares (in Thousands) Amount 70,000 $ 716,492 100,000 520,180 95,000 748,458 38,773 624,249 120,000 1,249,678 148,000 1,760,682 15,000 114,907 235,000 1,463,779 2,080 5,434 125 324,423 91,590 3,602,643 230,000 1,932,299 4,050 42,089 2,700 8,477 - 2,959 63,500 5,713,974 740 7,200 18,837,923 ( 155,686 ) (1,289,256) $ 17,392,981	Balance at January1,2021 Number of Shares (in Thousands) Amount 70,000 $ 716,492 100,000 520,180 95,000 748,458 38,773 624,249 120,000 1,249,678 148,000 1,760,682 15,000 114,907 235,000 1,463,779 2,080 5,434 125 324,423 91,590 3,602,643 230,000 1,932,299 4,050 42,089 2,700 8,477 - 2,959 63,500 5,713,974 740 7,200 18,837,923 ( 155,686 ) (1,289,256) $ 17,392,981			Changes in Investments	Changes in Investments	Changes in Investments		Others (Note 1) $ - - - ( 1,673 ) 370 - - - - - - - - - - - - ($ 1,303) $ - $ -	Balance at December 31,2021 Number of Shares (in Thousands) Ownership (%) Amount 70,000 100 $ 843,480 100,000 100 476,190 95,000 100 683,172 38,773 99.93 603,597 120,000 100 1,178,354 148,000 28.35 1,764,916 15,000 100 114,459 235,000 100 1,422,078 - 0 - 125 100 320,127 91,590 61.06 3,582,214 230,000 100 1,918,905 4,050 90 44,650 - 0 - - 100 2,497 68,300 100 6,299,866 740 37 6,871 19,261,376 ( 130,802 ) (1,286,518) $ 17,844,056	Balance at December 31,2021 Number of Shares (in Thousands) Ownership (%) Amount 70,000 100 $ 843,480 100,000 100 476,190 95,000 100 683,172 38,773 99.93 603,597 120,000 100 1,178,354 148,000 28.35 1,764,916 15,000 100 114,459 235,000 100 1,422,078 - 0 - 125 100 320,127 91,590 61.06 3,582,214 230,000 100 1,918,905 4,050 90 44,650 - 0 - - 100 2,497 68,300 100 6,299,866 740 37 6,871 19,261,376 ( 130,802 ) (1,286,518) $ 17,844,056	Balance at December 31,2021 Number of Shares (in Thousands) Ownership (%) Amount 70,000 100 $ 843,480 100,000 100 476,190 95,000 100 683,172 38,773 99.93 603,597 120,000 100 1,178,354 148,000 28.35 1,764,916 15,000 100 114,459 235,000 100 1,422,078 - 0 - 125 100 320,127 91,590 61.06 3,582,214 230,000 100 1,918,905 4,050 90 44,650 - 0 - - 100 2,497 68,300 100 6,299,866 740 37 6,871 19,261,376 ( 130,802 ) (1,286,518) $ 17,844,056		Net Equity $ 842,627 476,190 683,172 419,227 1,837,017 6,225,452 109,715 1,422,078 - 8,025 ) 5,666,141 1,918,905 49,116 - 2,497 6,299,866 18,571 $ 25,962,549	Note
			Number of Shares (in Thousands) - - - - - - - - ( 2,080 ) - - - - ( 2,700 ) - 4,800 -		Amount of Increase (Decrease) $ - - - - 110,000 ) 58,121 ) - - 5,175 ) - 173,715 ) - - 7,396 ) - 104,663 ) - $ 459,070) $ - $ 2,738	Investment Gains(Losses) $ 126,988 ( 43,990 ) ( 65,286 ) ( 18,979 ) 38,306 62,355 ( 448 ) ( 41,701 ) ( 324 ) ( 4,296 ) 153,286 ( 13,394 ) 2,561 ( 1,081 ) ( 439 ) 690,555 ( 329) $ 883,784 $ 24,884 $ -		Cumulative Translation Adjustment $ - - - - - - - - 65 - - - - - 23 ) - - $ 42 $ - $ -
	Number of Shares (in Thousands) 70,000 100,000 95,000 38,773 120,000 148,000 15,000 235,000 2,080 125 91,590 230,000 4,050 2,700 - 63,500 740									Number of Shares (in Thousands) 70,000 100,000 95,000 38,773 120,000 148,000 15,000 235,000 - 125 91,590 230,000 4,050 - - 68,300 740	Ownership (%) 100 100 100 99.93 100 28.35 100 100 0 100 61.06 100 90 0 100 100 37
		( (		( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( (	(		( (			( (	(		Note 2 Note 2 Note 2 Note 2 Note 2 Note 2

Note 1: It is the subsidiaries’ actuarial losses of the defined benefit plans and other comprehensive income recognized by the Company.

Note 2: The collateral provided for bank loans is $7,592,460 thousand.

• 87 -

Statement 4

Radium Life Tech Co., Ltd.

Statement of Changes in Right-of-use Assets 2021

(In Thousands of New Taiwan Dollars)

Cost Balance at January 1, 2021 Additions Lease terminated in current period Balance at December 31, 2021 Accumulated depreciation and impairment Balance at January 1, 2021 Depreciation expenses Lease terminated in current period Balance at December 31, 2021 Carrying amount at December 31, 2021		Buildings $ - 31,333 - $ 31,333 $ - 10,444 - $ 10,444 $ 20,889	Transportation Equipment $ 6,410 3,189 ( 1,774) $ 7,825 $ 2,969 2,713 ( 1,411) $ 4,271 $ 3,554		Total
			( (	( (	$ 6,410 34,522 1,774) $ 39,158 $ 2,969 13,157 1,411) $ 14,715 $ 24,443

• 88 -

Statement 5

Radium Life Tech Co., Ltd.

Statement of Contract Liabilities

December 31, 2021

(In Thousands of New Taiwan Dollars)

Item Fu-Jou District 1 Daqiao Sanzhi Project - East Side Xidian		Amount
		$ 37,657 24,094 166,172 246 $ 228,169

• 89 -

Statement 6

Radium Life Tech Co., Ltd.

Statement of Short-term Borrowings

December 31, 2021

(In Thousands of New Taiwan Dollars)

Typeand Creditor Credit borrowing - Chang Hwa Bank Credit borrowing - Chang Hwa Bank Collateralized borrowing - CTBC Bank Collateralized borrowing - Taiwan Business Bank Collateralized borrowing - Bank Of Panhsin Collateralized borrowing - Entie Bank Collateralized borrowing - Entie Bank	ContractPeriod 2022.03.31 2022.09.13 2022.11.26 2022.07.06 2022.09.16 2022.09.17 2022.12.23	InterestRate (%) 2.75 1.90 2.19 2.97 2.2 2.886 3.15	EndingBalance $ 60,000 558,032 332,200 200,000 265,332 - - $ 1,415,564	LoanCommitments $ 60,000 560,000 332,200 200,000 294,000 450,000 170,300 $ 2,066,500	Collateral
					None None Please refer to Note 29 Please refer to Note 29 Please refer to Note 29 Please refer to Note 29 Please refer to Note 29

• 90 -

Statement 7

Radium Life Tech Co., Ltd.

Statement of Long-term Borrowings December 31, 2021

(In Thousands of New Taiwan Dollars)

	Name	Summary			Amount	ContractPeriod	InterestRate	Collateral	Note
Yuanta Bank		Collateralized borrowing		$	249,500	2023.9.25	2.430	Please refer to Note 29
Yuanta Bank		Collateralized borrowing			600,000	2023.9.25	2.430	Please refer to Note 29
Yuanta Bank		Collateralized borrowing			578,500	2023.9.25	2.430	Please refer to Note 29
Yuanta Bank		Collateralized borrowing			411,000	2022.9.29	2.300	Please refer to Note 29
Yuanta Bank		Collateralized borrowing			600,250	2022.11.29	2.230	Please refer to Note 29
Yuanta Bank		Collateralized borrowing			292,000	2023.9.25	2.430	Please refer to Note 29
Yuanta Bank		Collateralized borrowing			499,204	2022.12.8	1.800	Please refer to Note 29
King's Town Bank		Collateralized borrowing			525,837	2026.3.26	2.400	Please refer to Note 29
King's Town Bank		Collateralized borrowing			316,404	2022.6.19	1.937	Please refer to Note 29
King's Town Bank		Collateralized borrowing			2,620,800	2022.8.4	1.937	Please refer to Note 29
King's Town Bank		Unsecured borrowings			252,070	2022.8.5	1.937	None
King's Town Bank		Collateralized borrowing			167,440	2022.8.22	2.442	Please refer to Note 29
King's Town Bank		Collateralized borrowing			363,290	2024.9.26	2.250	Please refer to Note 29
King's Town Bank		Collateralized borrowing			663,990	2028.2.16	2.000	Please refer to Note 29
Hwatai Bank		Collateralized borrowing			242,513	2022.4.20	2.100	Please refer to Note 29
Chang Hwa Bank		Collateralized borrowing			330,000	2028.4.14	1.750	Please refer to Note 29
Bank of Taiwan		Collateralized borrowing			1,275,000	2023.12.26	2.2727	Please refer to Note 29	Note
Bank of Taiwan		Collateralized borrowing			880,000	2023.12.26	2.2727	Please refer to Note 29	Note
CTBC Bank		Collateralized borrowing			172,000	2023.12.15	1.840	Please refer to Note 29
International Bills Finance Corporation		Collateralized borrowing			479,607	2022.2.4	2.488	Please refer to Note 29
International Bills Finance Corporation		Collateralized borrowing			119,902	2022.2.4	2.488	Please refer to Note 29
International Bills Finance Corporation		Collateralized borrowing			14,787	2022.2.4	2.588	Please refer to Note 29
Less: Arrangement fee	of long-term borrowings		(		5,750 )
Less: Current portion of long-term borrowings			(		6,196,247 )
Add: Arrangement fee	of current portion of long-				3,000
term borrowings
Long-term borrowings				$	5,455,097

Note: This is the amount of syndicated loans provided by groups of banks, including a group of 5 banks, including Bank of Taiwan.

• 91 -

Statement 8

Radium Life Tech Co., Ltd.

Statement of Lease Liabilities December 31, 2021 (In Thousands of New Taiwan Dollars)

Item Transportation equipment Sublease of buildings Total		Amount
		$ 3,736 190,402 $ 194,138

• 92 -

Statement 9

Radium Life Tech Co., Ltd. Statement of Operating Revenue 2021

(In Thousands of New Taiwan Dollars)

Item Construction contract revenue Rental income		Amount
		$ 1,282,008 141,100 $ 1,423,108

• 93 -

Statement 10

Radium Life Tech Co., Ltd.

Statement of Operating Costs

2021

(In Thousands of New Taiwan Dollars)

Item Construction cost Rental cost Other operating costs		Amount
	(	$ 999,560 186,108 9,907) $ 1,175,761

• 94 -

Statement 11

Radium Life Tech Co., Ltd.

Statement of Operating Expenses

2021

(In Thousands of New Taiwan Dollars)

Item Bank charges Salaries Depreciation Management Advertisement Commission Services Others (Note)		Selling and marketing expenses $ 360 3,089 2,556 19,639 51,247 41,334 3,523 47,096 $ 168,844	General and administrative expenses $ 264,389 138,130 69,994 32,404 184 - 34,872 41,838 $ 581,811		Total
					$ 264,749 141,219 72,550 52,043 51,431 41,334 38,395 88,934 $ 750,655

Note: The amount of each item did not exceed 5% of the balance of this account.

• 95 -

Statement 12

Radium Life Tech Co., Ltd.

Statement of Employees’ benefits, Depreciation, Depletion, and Amortization by Function 2021 and 2020

(In Thousands of New Taiwan Dollars)

Employees’ benefits expenses Salaries Labor and health insurance Pension Remuneration to directors Other employee benefits expenses Depreciation expenses Amortization expenses		2021		Total $ 128,934 10,632 5,354 4,530 9,967 $ 159,417 $ 228,805 $ 5,830		2020
	Classified as operating costs $ 123 - - - - $ 123 $ 156,255 $ -	Classified as operating expenses $ 128,811 10,632 5,354 4,530 9,967 $ 159,294 $ 72,550 $ 5,830			Classified as operating costs $ - - - - - $ - $ 186,169 $ -	Classified as operating expenses $ 183,006 13,618 7,613 9,580 12,709 $ 226,526 $ 103,955 $ 5,154		Total
								$ 183,006 13,618 7,613 9,580 12,709 $ 226,526 $ 290,124 $ 5,154

• Note 1: The monthly average number of employees of the Company in 2021 and 2020 was 116 and 167, respectively, and 3 directors did not serve as employees concurrently.

• Note 2: (1) The average employee benefits expense for the year was $1,371 thousand (“Total employee benefits expense for the year - Total remuneration of directors” / "Number of employees for the year - Number of directors who did not serve as employees concurrently").

The average employee benefits expense in the prior year was $1,323 thousand ("Total employee benefits in the prior year - Total remuneration of directors" / "Number of employees in the prior year - Number of directors who did not serve as employees concurrently").

• (2) The average employee wages and salaries for the year was $1,141 thousand (Total wages and salaries for the year / "Number of employees for the year - Number of directors who did not serve as employees concurrently").

The average employee wages and salaries for the prior year was $1,116 thousand (Total wages and salaries for the prior year / "Number of employees for the prior year - Number of directors who did not serve as employees concurrently").

• (3) The average adjustment to employee wages and salaries is 2.2% ("The average employee wages and salaries for the year - The average employee wages and salaries for the prior year" / The average wages and salaries for the prior year).

• Note 3: The Company’s salary policy is described as follows:

• (1) Remuneration of directors and supervisors

• 96 -

The Company's remuneration paid to directors and supervisors is divided into three categories: compensation, remuneration, and fees for services rendered. Among them, for compensation, if there is any profit in the year, the total amount will be allocated according to the Company's Articles of Incorporation, relevant laws and regulations while with reference to the payment levels in the same industry, and then the compensation will be allocated based on the directors' and supervisors' participation in and contribution to the Company's operations during their terms of office. Remuneration refers to the payment received by the directors and supervisors for performing their duties or serving as functional committee members concurrently, and paid according to their qualifications while with reference to the payment levels in the same industry. Fees for services rendered are honoraria, special allowance, and various allowances received by the directors and supervisors for performing their duties or serving as functional committee members concurrently.

(2) Salary and remuneration of managers and employees

The salary structure of managers and employees is divided into “salary” as well as “bonus and subsidy”. Salary is paid monthly, which is divided into basic salary and allowance; "bonus and subsidies" are given due to work performance or specific work achievements or meeting specific conditions. "Bonus" includes year-end bonus and employee compensation. The amount of year-end bonus is determined based on the profitability of the year, operating performance, and other indicators. Individuals are paid based on the indicators, such as position, performance, and years of service, which shall be approved by the remuneration committee before resolved by the board of directors. According to the provisions of the Company’s Articles of Incorporation and pre-tax income as the basis for allocation, the allocation criteria for employee compensation are evaluated based on relevant performance indicators for operations, and shall be approved by the remuneration committee before resolved by the board of directors. “Subsidies” are open for application by employees who meet specific conditions, such as transportation subsidy and medical examination subsidy.

• 97 -