RADIUM — Audit Report / Information 2020

Nov 13, 2020

Stock Code: 2547

Radium Life Tech Co., Ltd.

Parent Company Only Financial Statements for the Years Ended December 31, 2020 and 2019 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, 2020 and 2019, 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, 2020 and 2019, 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, 2020. 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.

Key audit matters for the Company’s parent company only financial statements for the year ended December 31, 2020 are stated as follows:

Valuation of property inventories

As shown in Note 12 to the parent company only financial statements, as of December 31, 2020, the property in the inventory category of the parent company only balance sheet (including property under development, property to

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be developed, and buildings and land held for sale) totaled NT$7,529,522 thousand, accounting for 21% 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:

1. The amount of property under development recognized is NT$843,886 thousand, accounting for about 11% 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.

2. The portion of the property to be developed and the buildings and land held for sale recognized is NT$6,685,636 thousand, which accounts for about 89% 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 Governancefor the Parent Company Only financial statements

Managemant 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 thay 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 overseeingthe Company’s financial reporting process.

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

Our objectives are to obtain reasonable assurance aboutwhether the parent company only financial statements as a whole are free from material misstatement, whether due tofraud 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:

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• 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.

• 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.

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

• 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.

• 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.

• 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.

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, 2020 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.

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The engagement partners on the audit resulting in this independent auditors’ report are Gung, Jerry and Liu, Walter.

Gung, Jerry

Liu, Walter

Deloitte & Touche Taipei, Taiwan Republic of China March 26, 2021

Notice to Readers

The accompanying consolidated 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 consolidated financial statements are those generally applied in the Republic of China.

For the convenience of readers, the independent auditors’ report and the accompanying consolidated 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 consolidated financial statements shall prevail.

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Radium Life Tech Co., Ltd.

PARENT COMPANY ONLY BALANCE SHEETS

DECEMBER 31, 2020 AND 2019

(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) 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) Trade payables Trade payables to related parties (Note 28) Other payables Other payables to related partiess (Note 28) Current tax liabilities Lease liabilities - current (Notes 4 ,16 & 28) Current portion of long-term borrowings and bonds payable (Notes 18, 19, 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 Total equity TOTAL		December 31,2020	December 31,2020	％ 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		December 31,2019	December 31,2019
		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				Amount $ 655,763 - 30,040 2,528 124,284 7,311 19,117 11,279 1 3,761 8,983,851 165,128 266,764 120,421 10,390,248 5,100 1,040,728 17,432,714 111,699 17,562 8,205,183 4,335 12,733 46,632 26,876,686 $ 37,266,934 $ 1,315,485 2,936,884 621,153 74,355 1,050,889 1,496,999 501,270 17,783 128,829 1,665,187 93,730 9,902,564 2,500,000 12,563,607 259,351 277,296 9,133 16,347 15,625,734 25,528,298 9,123,076 1,299,873 179,986 4,360 1,134,675 1,319,021 3,334) 11,738,636 $ 37,266,934		％
					(			2 - - - - - - - - - 24 1 1 - 28 - 3 47 - - 22 - - - 72 100 4 8 2 - 3 4 1 - - 4 - 26 7 34 - 1 - - 42 68 24 4 1 - 3 4 - 32 100

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, 2020 AND 2019

(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		2020		％ 100 82) 18 15 ) 32) 47) 29) - 34 2 ) 19 ) 47 60 31 1) 30		2019
		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				Amount $ 1,475,855 1,237,464) 238,391 169,679 ) 736,146) 905,825) 667,434) 4,728 422,474 19,595 ) 387,449 ) 1,077,635 1,097,793 430,359 23,628) 406,731		％
	( ( ( ( ( ( ( (		( ( ( ( ( ( ( (		( ( ( ( ( ( ( (		( ( ( ( ( ( ( (	100 84) 16 11 ) 50) 61) 45) - 28 1 ) 26 ) 73 74 29 1) 28

(Continued)

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OTHER COMPREHENSIVE INCOME /(LOSS) Items that will not be reclassified subsequently to profit or loss Remeasurement of defined benefit plans Remeasurement of defined benefit plans, associates and joint ventures accounted for using equity method Unrealized gain/(loss) from 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		2020		％ - - - - - 30		2019
		Amount $ 185 247 ) 3,365 55 3,358 $ 626,046 $ 0.69 $ 0.69				Amount $ 774 2,169 1,179 153) 3,969 $ 410,700 $ 0.45 $ 0.45		％
	(				(			- - - - - 28

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, 2020 AND 2019

(In Thousands of New Taiwan Dollars)

BALANCE AT JANUARY 1, 2019 Effect of retrospective application and retrospective restatement BALANCE AFTER RESTATEMENT AS OF JANUARY 1 , 2019 Appropriation of 2018 earnings Legal reserve appropriated Special reserve appropriated Cash dividends distributed by the company Stock dividends distributed by the company Net income in 2019 Other comprehensive income in 2019, net of income tax Total comprehensive income in 2019 Difference between consideration and carrying amount of subsidiaries acquired or disposed BALANCE AT DECEMBER 31, 2019 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 DECEMBER 31, 2020	Share Capital Ordinary Shares $ 8,944,192 - 8,944,192 - - - 178,884 - - - - 9,123,076 - - - - - - ( 122,130) $ 9,000,946	CapitalSurplus $ 1,299,578 - 1,299,578 - - - - - - - 295 1,299,873 - - - - - - 7,970 $ 1,307,843			RetainedEarnings	Unappropriated Earnings $ 1,799,863 4,198 1,804,061 ( 179,986 ) ( 4,360 ) ( 715,535 ) ( 178,884 ) 406,731 2,943 409,674 ( 295) 1,134,675 ( 40,673 ) ( 547,385 ) 1,026 622,688 ( 62) 622,626 - $ 1,170,269	Other Equity Exchange Differences on Translating the Financial Statements of ForeignOperations Unrealized Gain/(loss) on Financial Assets at Fair Value Through Other Comprehensive Income ( $ 1,291 ) ( $ 3,069 ) - - ( 1,291 ) ( 3,069 ) - - - - - - - - - - ( 153) 1,179 ( 153) 1,179 - - ( 1,444 ) ( 1,890 ) - - - - - - - - 55 3,365 55 3,365 - - ($ 1,389) $ 1,475	Other Equity Exchange Differences on Translating the Financial Statements of ForeignOperations Unrealized Gain/(loss) on Financial Assets at Fair Value Through Other Comprehensive Income ( $ 1,291 ) ( $ 3,069 ) - - ( 1,291 ) ( 3,069 ) - - - - - - - - - - ( 153) 1,179 ( 153) 1,179 - - ( 1,444 ) ( 1,890 ) - - - - - - - - 55 3,365 55 3,365 - - ($ 1,389) $ 1,475		Total Equity
							Exchange Differences on Translating the Financial Statements of ForeignOperations ( $ 1,291 ) - ( 1,291 ) - - - - - ( 153) ( 153) - ( 1,444 ) - - - - 55 55 - ($ 1,389)
				Legal Reserve $ - - - 179,986 - - - - - - - 179,986 40,673 - - - - - - $ 220,659	Special Reserves $ - - - - 4,360 - - - - - - 4,360 - - ( 1,026 ) - - - - $ 3,334
	(				(	( ( ( ( ( ( ( (	( ( ( ( ( (	( ( (	( ( (	$ 12,039,273 4,198 12,043,471 - - 715,535 ) - 406,731 3,969 410,700 - 11,738,636 - 547,385 ) - 622,688 3,358 626,046 114,160) $ 11,703,137

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, 2020 AND 2019

(In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITES Profit before income tax Adjustments for: Depreciation expenses Amortization expenses Net loss (gain) 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 Gains on disposals of property, plant and equipment Gains on disposals of investments 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 Contract assets 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 a contract Contract liabilities Notes payable Notes payable to related parties	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 ) - -	2019
		$ 430,359 315,192 5,843 ( 72 ) 387,449 ( 4,728 ) ( 1,077,635 ) ( 1 ) ( 79 ) ( 784 ) ( 4,954 ) 17,981 151 1,975 ( 772 ) ( 38,708 ) 774 2,415 1,427 221,194 102,024 ( 2,122 ) 80,999 ( 584,667 ) ( 626,938 ) ( 268,341 )

(Continued)

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Trade payables Trade payables to related parties Other payables Other payables to related parties Other current liabilities Other operating liabilities Cash generated from(used in) operations Interest received Interest paid Income tax paid Net cash i generated from(used in) operating activities CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at amortized cost Proceeds from sale of financial assets at amortized cost Acquisition of investments accounted for using equity method Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Decrease in refundable deposits Decrease in other receivablesfrom related parties 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(used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from short-term borrowings Repayments of short-term borrowings Proceeds from short-term bills payable Decrease in short-term bills payable Proceeds from issuance of bonds Repayments of bond payables Proceeds from long-term borrowings Repayments of long-term borrowings Proceeds from guarantee deposits received Increase in other payables to related parties Repayment of the principal portion of lease liabilities		2020 $ 32,220 ) 744,292 ) 14,040 702 ) 38,146 ) 1,981) 707,189 2,975 395,099 ) 37,335) 277,730 1,207,347 ) 21,616 549,985 ) 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 )		2019 $ 189,315 ) 100,309 ) 11,583 ) 923 16,940 ) 1,977) 1,361,219 ) 4,492 390,903 ) 5,845) 1,753,475) 186,715 ) - 2,635,424 ) 2,995 ) 1 22,610 425,000 5,632 ) - 11,034 532,308 1,839,813) - 79,515 ) 1,613,466 - 1,000,000 300,000 ) 1,053,119 - 3,179 110,000 130,059 ) (Continued)
	( ( ( ( ( ( ( ( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( ( ( ( ( ( ( (

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Dividends paid to owners of the Company Payments for transaction costs attributable to treasury shares Net cash generated from(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		2020 $ 547,385 ) 114,160) 837,030) 611,898 655,763 $ 1,267,661		2019
	( ( (		( (	$ 715,535 ) - 2,554,655 1,038,633 ) 1,694,396 $ 655,763

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, 2020 AND 2019

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

1. Organization and Operations

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

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

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

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

The parent company only financial statements were approved by the board of directors and authorized for release on March 26, 2021.

1. Application of Newly Issued and Amended Standards and Interpretations

2. (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)

Except for the following, 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 Amendments to IAS 1 and IAS 8 "Definition of Materiality”

The Company adopted the amendments starting from January 1, 2020. The threshold of

materiality that could influence users has been changed to “could reasonably be expected to

influence”. Accordingly, disclosures in the parent company only financial statements do not include immaterial information that may obscure material information.

Since the first-time application of the aforementioned amendments, there has been no material impact on all assets, liabilities, and equity on January 1, 2020.

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(II) The IFRSs endorsed by the Financial Supervisory Commission (FSC) for application starting from 2021

2021
New/Revised/Amended Standards and Interpretations Amendments to IFRS 4 " Extension of the Temporary Exemption from Applying IFRS 9" Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4, and IFRS 16 - “Interest Rate Benchmark Reform - Phase 2”	Effective Date Announced by IASB
	Effective immediately upon promulgation by the IASB January 1, 2021

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) New IFRSs in issue but not yet endorsed and issued into effect by the FSC

New/Revised/Amended Standards and Interpretations “Annual Improvement to IFRS Standards 2018-2020” Amendment to IFRS 3 - "Reference to the Conceptual Framework" 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 Amendments to IAS 1 “Classification of Liabilities as Current or Non-current” Amendments to IAS 1 “Disclosure of Accounting Policies” Amendments to IAS 8 “Definition of Accounting Estimates” Amendments to IAS 16 “Property, Plant and Equipment - Proceeds before Intended Use” Amendments to IAS 37 “ Onerous Contracts - Cost of Fulfilling a Contract

Effective Date Issued by IASB (Note 1)

January 1, 2022 (Note 2) January 1, 2022 (Note 3) To be determined January 1, 2023 January 1, 2023 January 1, 2023 January 1, 2023 (Note 4) January 1, 2023 (Note 5) January 1, 2022 (Note 6) January 1, 2022 (Note 7)

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 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 3: The amendment applies to business combination with the acquisition date is on or after the beginning of the annual reporting period beginning on or after January 1, 2022. Note 4: The amendment will be applies prospectively for annual reporting period beginning on or after January 1, 2023. Note 5: 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.

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Note 6: 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 7: 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.

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;

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.

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• (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.

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 onlyfinancial 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.

• 16 -

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 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 gain 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) Investment 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 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.

• 17 -

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 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.

• 18 -

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.

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.

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. (IX) 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 sellingservice 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, 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 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. Intangible assets with indefinite useful lives and not yet available for use are tested for impairment at least annually and whenever there is a 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

• 19 -

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 onlybalance 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.

• (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

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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:

• 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 credit-impaired 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.

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(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.

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 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 instrument

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.

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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 liability

• (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.

• (XIV) Revenue recognition

After the Company identifies its performance obligations in contracts with customers, it allocates the transaction priceto 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) Leasing

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

• 23 -

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 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.

2)

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. 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. Right-ofuse 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

• 24 -

underlying asset purchase options, or the 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-of-use 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 rightof-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 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

• 25 -

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 income 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 income.

Deferred income tax liabilities are generally recognized for all taxable temporary differences, and deferred tax assets are recognized when there are likely to be taxable income to deduct temporary differences, loss carryforwards, or income tax credit arising from investment.

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 income 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 its carrying amount will be increased as it has become probable that future taxable income will allow all or part of the asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates in the period in which the liabilities are expected to be settled or assets realized, based on tax rates and tax laws that have been enacted or substantively enacted at 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

• 26 -

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.

6. Cash and cash equivalents

Cash and cash equivalents
Cash Checking accounts and demand deposits Foreign currency deposits Cash in transit	December 31,2020 $ 1,748 1,262,338 3,575 - $ 1,267,661	December 31,2019
			$ 1,661 650,491 3,609 2 $ 655,763

7. Financial assets at FVTPL

December 31, 2020 December 31, 2019 Current Mandatorily measured at FVTPL Non-derivative financial assets s Fund beneficiary certificates $ 2,969 $ -

Please refer to Note 25(2) for the gains or losses on financial assets at FVTPL.

8. Financial assets at FVTOCI

Investments in equity instruments at FVTOCI

Investments in equity instruments at FVTOCI
Non-current Domestic unlisted shares	December 31,2020 $ 5,100	December 31,2019
			$ 5,100

The Company invests in the above-mentioned unlisted stocks for medium- to long-term 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.

Financial assets at amortized cost

Financial assets at amortized cost
Current Domestic investments Other financial assets Non-current Domestic investments Other financial assets	December 31,2020 $ 8,424 $ 2,248,075	December 31,2019
			$ 30,040 $ 1,040,728

• (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.

• 27 -

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	December 31,2020 $ - - $ - $ 30,426 - $ 30,426	December 31,2019
			$ 2,528 - $ 2,528 $ 124,284 - $ 124,284

Trade receivables

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, 2020 and 2019 are not past due.

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	December 31,2020 $ 23,490 27,256 18,672 221 - 69,639 ( 2,162) 67,477 $ 67,477	December 31,2019
	(	(	$ 20,622 19,371 19,144 9,647 28 68,812 3,063) 65,749 $ 65,749

• 28 -

. 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 31,2020 $ 843,886 497,981 6,187,655 $ 7,529,522	December 31,2019
			$ 804,278 494,092 7,685,481 $ 8,983,851

Property under development

Property under development
	Estimated
Project name	completionyear	December 31,2020		December 31,2019
Sanzhi Project - East Side	2022	$	843,886		$	804,278
Property to be developed
Project name	December 31,2020			December 31,2019
Subsection 1, Wenquan Section, Beitou
District	$	316,758		$		312,869
Sanzhi Project - West Side		181,223				181,223
	$	497,981		$		494,092
Buildings and land held for sale
Project name	December 31,2020			December 31,2019
Fu-Jou project	$	4,832,747		$		4,981,230
Daqiaotou Project		1,245,381				2,503,610
Badu Project		29,773				83,836
Xidian Project		40,735				77,786
Others		39,019				39,019
	$	6,187,655		$		7,685,481

(I) As of December 31, 2020 and 2019, it was expected that the inventory recovered after more than 12 months would be NT$1,341,867 thousand and NT$1,298,370 thousand respectively.

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

• 29 -

• (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:

as follows:
Project name Fu-Jou project Daqiaotou Project Sanzhi Project – East & West Side	Trustee Hezhong Construction Management Co., Ltd. CTBC Bank Baoguo Construction Management Co., Ltd.	Trustperiod
		From October 24, 2018 to the date when the units on the second floor and above of this affordable housing project have been successfully sold and the property rights are transferred and registered to buyers. In October 2019, the purpose of the trust was achieved, so the trust contract was terminated. From August 8, 2014 to the date when all the buildings in this project are completed, the user license is obtained, and the first registration of the ownership of the buildings is completed, and the registration of mortgage pledged to a group of banks is completed, or the debt is fully paid off. The creditor's rights of the group of banks, the manager, and the arranger in the syndicated loan to the Company under the syndicated loan contract were fully repaid; the purpose of the trust was achieved in August 2019, so the trust contract was terminated. 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, self-raising 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 2020 and 2019 was NT$1,512,087 thousand and NT$1,037,209 thousand respectively. The cost of sales included gains on inventory value recoveries of NT$7,502 thousand and NT$784 thousand, respectively. The recovery in the net realizable value of inventories in 2020 was due to the increase in the selling price of the inventories in the market.

• 30 -

13. Prepayments and other assets

Prepayments and other assets
Overpaid sales tax Others Prepayments Other assets - current	December 31,2020 $ 15,321 125,156 $ 140,477 $ 136,396 4,081 $ 140,477	December 31,2019
			$ 57,937 227,612 $ 285,549 $ 165,128 120,421 $ 285,549

1. Investments accounted for using equity method

Investments accounted for using equity method
Investments in subsidiaries Unlisted company Ji Shun Life Tech Co., Ltd. (Ji- Shun) Li Chiang Development Co., Ltd. (Li-Chiang) Rih Yao DevelopmentRih 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 EnterpriseZhao 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)	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	December 31,2019
		$ 528,337 565,108 796,123 628,871 1,281,111 1,772,186 131,418 1,582,433 6,856 328,956 3,583,376 1,960,059 50,353 20,355 4,825 (Continued)

• 31 -

Rih-Ding Circular Economy Investment Holdings Co., Ltd. (Rih-Ding Hldg) Jing Ding Green Energy Technology Co., Ltd. (Jing-Ding) Rih Ding Water Enterprise Co., Ltd. (Rih-Ding Water) Ding Sheng Green Energy Technology Co., Ltd.(Ding- Sheng) Less: Unrealized gain from affiliate Less: Accumulated impairment	December 31,2020 $ 5,713,974 7,200 - - ( 1,289,256 ) ( 155,686) $ 17,392,981	December 31,2019	December 31,2019
	( (	( (	$ - - 4,466,864 50,122 168,953 ) 155,686) $ 17,432,714

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

the reporting periodare 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 Rih-Ding Water Ding-Sheng	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% - -	December 31,2019
		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% 100.00%

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 2020 and 2019 were recognized based on the subsidiaries’ financial statements that have been audited by CPAs for the same periods.

• 32 -

As of December 31, 2020 and 2019, the accumulated impairment of the investment under the equity method by the Company was both NT$155,686 thousand.

Ding-Sheng was established on January 4, 2019, Wan-Tong on May 23, 2019, and Rih-Ding Hldg on March 5, 2020, all of which were 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.

The investee Clever Base is recognized by the Company under the equity method. Clever Base’s investee Sharp China recognized under the equity method sold 100% of its equity in LiJiang (Shanghai) to the Company on December 12, 2019.

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, 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 Cost Balance at January 1, 2019 Additions Disposals Transfers to investment properties Balance at December 31, 2019		Freehold Land $ 47,750 - $ 47,750 $ - - $ - $ 47,750 $ 129,666 - - 81,916) $ 47,750		Buildings $ 83,418 - $ 83,418 $ 26,162 2,597 $ 28,759 $ 54,659 $ 226,049 - - 142,631) $ 83,418	Transportati -on Equipment $ 1,302 - $ 1,302 $ 1,172 41 $ 1,213 $ 89 $ 2,304 - ( 1,002 ) - $ 1,302	Office Equipment $ 35,085 943 $ 36,028 $ 29,190 1,905 $ 31,095 $ 4,933 $ 32,528 2,557 - - $ 35,085	Other Equipment $ 15,229 1,599 $ 16,828 $ 14,561 224 $ 14,785 $ 2,043 $ 14,791 438 - - $ 15,229		Total
	(		(					$ 182,784 2,542 $ 185,326 $ 71,085 4,767 $ 75,852 $ 109,474 $ 405,338 2,995 ( 1,002 ) (224,547) $ 182,784 (Continued)

• 33 -

Accumulated depreciation and impairment Balance at January 1, 2019 Depreciation expenses Disposals Transfers to investment properties Balance at December 31, 2019 Carrying amount at December 31, 2019		Freehold Land $ - - - - $ - $ 47,750		Buildings and Structures $ 84,830 5,151 - 63,819) $ 26,162 $ 57,256	Transportati on Equipment $ 2,133 41 ( 1,002 ) - $ 1,172 $ 130	Office Equipment $ 27,209 1,981 - - $ 29,190 $ 5,895	Other Equipment $ 14,428 133 - - $ 14,561 $ 668	Total
			(					$ 128,600 7,306 ( 1,002 ) (63,819) $ 71,085 $ 111,699

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:

mated useful lives as shown in the following:
Buildings	10-50 years
Transportation equipment	5 years
Office equipment	3-10 years
Other equipment	1-8 years

• (II) As of December 31, 2020 and 2019, the accumulated impairment of the property, plant and equipment, through the assessment of their recoverable amounts based on their net fair values was both NT$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	December 31,2020 $ - 3,441 $ 3,441 2020 $ 1,616 $ 13,045 2,087 $ 15,132	December 31,2019
			$ 13,045 4,517 $ 17,562 2019
			$ 4,955 $ 13,045 1,311 $ 14,356

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

• 34 -

(II) Lease liabilities

Lease liabilities
Carrying amount Current Non-current	December 31,2020 $ 104,663 $ 172,011	December 31,2019
			$ 128,829 $ 277,296

Range of discount rate for lease liabilities is as follows:

Buildings Transportation equipment	December 31,2020 2.72% 2.15%-2.72%	December 31,2019
		2.72% 2.72%

(III) Material lease-in activities and terms

The Company has leased several buildings for offices over a lease terms of 2 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 has 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		2020 $ 4,910 $ 143,363 )		2019
	(		(	$ 11,598 $ 154,541 )

The Company has leased certain office equipment which qualifies for short-term 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, 2020 Disposals Transfers to finance lease receivables Transfers to buildings and land held for sale Transfers from buildings and land held for sale Transfers from finance lease receivable Balance at December 31, 2020		Completed Investment Properties $ 8,841,981 1,480,924 ) - 91,894 ) 118,149 - $ 7,387,312	Right-of-use Assets $ 406,913 ( 21,943 ) ( 117,924 ) - - 17,446 $ 284,492		Total
	( (		( (	( ( (	$ 9,248,894 1,502,867 ) 117,924 ) 91,894 ) 118,149 17,446 $ 7,671,804

(Continued)

• 35 -

Accumulated depreciation and impairment Balance at January 1, 2020 Depreciation expenses Disposals Transfers to finance lease receivables Transfers to buildings and land held for sale Transfers from buildings and land held for sale Balance at December 31, 2020 Carrying amount at December 31, 2020 Cost Balance at January 1, 2019 Adjustments on initial application of IFRS 16 Balance at January 1 , 2019(restated) Additions Transfers to finance lease receivables Transfers to property to be developed Transfers to buildings and land held for sale Transfers from buildings and land held for sale Transfers from property, plant and equipment Transfers from finance lease receivables Balance at December 31, 2019		Completed Investment Properties $ 947,739 190,605 242,825 ) - 1,960 ) 24,875 $ 918,434 $ 6,468,878 $ 9,020,029 - 9,020,029 - - 293,550 ) 113,998 ) 4,953 224,547 - $ 8,841,981	Right-of-use Assets $ 95,972 79,620 ( 20,451 ) ( 32,784 ) - - $ 122,357 $ 162,135 $ - 472,411 472,411 7,349 ( 75,065 ) - - - - 2,218 $ 406,913		Total
	( ( ( (		( ( (	( ( ( ( ( (	$ 1,043,711 270,225 263,276 ) 32,784 ) 1,960 ) 24,875 $ 1,040,791 $ 6,631,013 $ 9,020,029 472,411 9,492,440 7,349 75,065 ) 293,550 ) 113,998 ) 4,953 224,547 2,218 $ 9,248,894

(Continued)

• 36 -

Accumulated depreciation and impairment Balance at January 1, 2019 Adjustments on initial application of IFRS 16 Balance at January 1 , 2019(restated) Depreciation expenses Transfers to finance lease receivables Transfers to property to be developed Transfers to buildings and land held for sale Transfers from property, plant and equipment Balance at December 31, 2019 Carrying amount at December 31, 2019		Completed Investment Properties $ 824,885 - 824,885 188,183 - 112,327 ) 16,821 ) 63,819 $ 947,739 $ 7,894,242	Right-of-use Assets $ - - - 105,347 ( 9,375 ) - - - $ 95,972 $ 310,941		Total
	( (		(	( ( (	$ 824,885 - 824,885 293,530 9,375 ) 112,327 ) 16,821 ) 63,819 $ 1,043,711 $ 8,205,183

• (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, 2020 and 2019 was NT$10,182,917thousand and NT$12,385,734 thousand, respectively. The fair value was based on the appraisals conducted by independent appraisers Wei-Hsin Chin, Liang-An Chi, and WenChe 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, 2020 and 2019, the Company’s buildings and land were held in trust in order to obtain financing from financial institutions. The trust registration is as follows:

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

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, 2020 and 2019, the accumulated impairment of the investment properties, through the assessment of their recoverable amounts based on their net fair values was NT$94,412

• 37 -

thousand and NT$69,537 thousand respectively. 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 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:

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 onwards	December 31,2020 $ 145,880 140,682 86,160 32,205 5,956 29,863 $ 440,746	December 31,2019	December 31,2019
			$ 142,601 146,613 142,010 87,790 34,030 45,889 $ 598,933

1. Borrowings (I) Short-term borrowings

Short-term borrowings
Secured borrowings Bank loans Unsecured borrowings Bank loanss	December 31,2020 $ 1,887,250 607,355 $ 2,494,605	December 31,2019
			$ 539,972 775,513 $ 1,315,485

The interest rate range of short-term borrowings as of December 31, 2020 and 2019 was 2.00%– 3.07% and 1.33%–3.57%, 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 International Bills Finance Corporation Taiwan Cooperative Bills Finance Corporation Entie Bank Less: Discount on short-term bills payable	December 31,2020 $ - - - - - $ -	December 31,2019
		(	$ 1,404,400 585,200 950,000 2,939,600 2,716) $ 2,936,884

The interest rate range of short-term bills payable as of December 31, 2019 was 0.58%–1.55%. Please refer to Note 29 for the collateral pledged for the above-mentioned short-term bills payable.

• 38 -

(III) Long-term borrowings

Long-term borrowings
Secured borrowings Syndicated loan project led by Bank of Taiwan Syndicated loan project led by CTBC Bank Other borrowings Unsecured borrowings Other borrowings from banks Less: Deduction in long-term borrowings – syndicated loan expense Less: Current portion of long-term borrowings and bonds payable Add: Current portion of deduction in long-term borrowing - syndicated loan expense Long-term borrowings	December 31,2020 $ 2,425,000 656,466 9,481,895 263,150 ( 12,663 ) ( 1,437,443 ) 3,000 $ 11,379,405	December 31,2019
	( (	( (	$ 2,500,000 1,856,584 9,615,990 274,230 18,010 ) 1,665,187 ) - $ 12,563,607

The interest rate range of long-term borrowings as of December 31, 2020 and 2019 was 1.54%– 2.93% and 1.50%–3.25%, respectively. The syndicated loan project led by Bank of Taiwan includes five banks. The syndicated loan project led by CTBC Bank includes four banks. Please refer to Note 29 for the collateral pledged for the above-mentioned borrowings.

19. Bonds payable

Bonds payable
Secured domestic bonds	December 31,2020 $ 5,500,000	December 31,2019
			$ 2,500,000

The Company issued the first domestic secured ordinary bonds on September 14, 2017. The main conditions for the issue are as follows:

• (I) Total amount of issue: NT$1,000,000 thousand.

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

• (III) 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.

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

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

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

• (I) Total amount of issue: NT$500,000 thousand.

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

• (III) 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.

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

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

• 39 -

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

• (I) Total amount of issue: NT$1,000,000 thousand.

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

• (III) 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.

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

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

The Company issued the first domestic secured ordinary bonds on June 1, 2020. The main

conditions for the issue are as follows:

• (I) Total amount of issue: NT$1,000,000 thousand.

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

• (III) 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.

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

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

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

• (I) Total amount of issue: NT$1,000,000 thousand.

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

• (III) 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.

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

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

The Company issued the third domestic secured ordinary bonds on December 29, 2020. The

main conditions for the issue are as follows:

• (I) Total amount of issue: NT$1,000,000 thousand.

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

• (III) 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.

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

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

• 40 -

December 31, 2020 December 31, 2019

20. Provisions

Non-current Warranties

$ 257,370 $ 259,351

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 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. 21. 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:

period, which are listed below:
Assets Financial assets at amortized cost -current Notes receivable and trade receivables Buildings and land held for sale Land held for construction site Land held for construction site Refundable deposits - current Liabilities Contract liabilities - current Guarantee deposits received (shown as other current liabilities) Current portion of long-term borrowings and bonds payable Assets Financial assets at amortized cost -current Notes receivable and trade receivables Buildings and land held for sale Land held for construction site Land held for construction site Refundable deposits - current Liabilities Contract liabilities - current Guarantee deposits received (shown as other current liabilities)			December 31,2020
		Within 1year $ 8,423 $ 22,269 $ 6,187,655 $ - $ - $ 190,854 $ 44,769 $ 516 $ 479,510				Total
						$ 8,423 $ 22,269 $ 6,187,655 $ 843,886 $ 497,981 $ 190,854 $ 51,569 $ 516 $ 479,510
		Within 1year $ 5 $ 121,001 $ 7,685,481 $ - $ - $ 266,764 $ 621,153 $ 21		More than 1year $ - $ - $ - $ 804,278 $ 494,092 $ - $ - $ -		Total
						$ 5 $ 121,001 $ 7,685,481 $ 804,278 $ 494,092 $ 266,764 $ 621,153 $ 21

1. Retiremen benefit plans (I) Defined contribution plans

2. 41 -

The Company has adopted a pension plan under the Labor Pension Act (LPA), which is a statemanaged 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 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:

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 31,2020 $ 20,381 ( 11,721) 8,660 $ 8,660	December 31,2019
	(	(	$ 20,004 10,871) 9,133 $ 9,133

Changes in net defined benefit liabilities are as follows:

Balance at January 1, 2019 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 gain - changes in financial assumptions Actuarial loss - changes in demographic assumptions Actuarial loss - experience adjustments Recognized in other comprehensive income	Present value of the defined benefit obligation $ 20,160 68 199 267 - ( 1,369 ) 18 928 ( 423)	Fair value of the plan assets ($ 10,053) - ( 100) ( 100) ( 351 ) - - - ( 351)	Net defined benefit liabilities	Net defined benefit liabilities
	( (	( ( ( ( (	( ( (	$ 10,107 68 99 167 351 ) 1,369 ) 18 928 774) (Continued)

• 42 -

Contributions from the employer Balance at December 31, 2019 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 at December 31, 2020	Present value of the defined benefit obligation $ - $ 20,004 Present value of the defined benefit obligation $ 65 139 204 - 696 ( 523) 173 - $ 20,381	Fair value of the plan assets ($ 367) ($ 10,871) Fair value of the plan assets $ - ( 76) ( 76) ( 358 ) - - ( 358) ( 416) ($ 11,721)	Net defined benefit liabilities ($ 367) $ 9,133 Net defined benefit liabilities	Net defined benefit liabilities ($ 367) $ 9,133 Net defined benefit liabilities
	(	( ( ( ( ( (	( ( ( (	$ 65 63 128 358 ) 696 523) 185) 416) $ 8,660

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:

Discount rate Expected rate of salary increase Turnover rate	December 31,2020 0.30% 2.00% 0.54%	December 31,2019
		0.70% 2.00% 0.47%

• 43 -

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:

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	December 31,2020 ($ 439) $ 453 $ 445 ($ 433) $ - $ -	December 31,2019	December 31,2019
	( (	( (	$ 473) $ 489 $ 481 $ 468) $ - $ -

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.

(I)	Expected contributions to the plans for the next year Average duration of the defined benefit obligation Equity Share capital Authorized shares (in thousands) Authorized capital Issued and paid shares (in thousands) Issued capital	December 31,2020 $ 366 8 years December 31,2020 950,000 $ 9,500,000 900,095 $ 9,000,946	December 31,2019	December 31,2019
			$ 392 9 years December 31,2019
				950,000 $ 9,500,000 912,308 $ 9,123,076

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 passed the resolution at the shareholders’ meeting on June 24, 2019 to conduct issuance of share dividends from the earnings for NT$178,884 thousand, and issue 17,888 thousand new shares. The issuance of share dividends fromthe earnings was approved and entered into force by the Securities and Futures Bureau, FSC, on July 4, 2019, and the board of directors resolved to set the record date of the capital increase on August 14, 2019.

The Company’s board of directors passed the resolution on June 24, 2020 to repurchase 12,213 thousand treasury shares, and to conduct the cancellation and change registration for the capital reduction in accordance with the law, with July 8, 2020 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	December 31,2020 $ 1,240,379 59,494 7,970 $ 1,307,843	December 31,2019
			$ 1,240,379 59,494 - $ 1,299,873

• 44 -

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.

• 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 and supervisors, please refer to Note 25(6) regarding employee compensation and remuneration of directors and supervisors.

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 Company set aside and reversed a special reserve in accordance with the Rule No. 1010012865, Rule No. 1010047490 issued by the FSC, and the directive, entitled “Questions and Answers for Special Reserves Appropriated Following Adoption of IFRSs”.

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 2019 and 2018 approved in the shareholders’ meetings on May 18, 2020, and June 24, 2019, respectively, are as follows:

Legal reserve Special reserve Cash dividends Share dividends Cash dividends per share (NT$) Share dividends per share (NT$)		2019 $ 40,673 $ 1,026) $ 547,385 $ - $ 0.6 $ -		2018
	(			$ 179,986 $ 4,360 $ 715,535 $ 178,884 $ 0.8 $ 0.2

• 45 -

The 2020 earnings distribution proposal put forth by the Company’s board of directors on March 26, 2021 is as follows:

26, 2021 is as follows:
Legal reserve Special reserve Cash dividends Cash dividends per share (NT$)		2020
	(	$ 62,263 $ 1,945) $ 558,058 $ 0.62

The 2020 earnings distribution proposal has yet to be resolved by the shareholders' meeting scheduled to be held on June 25, 2021.

(IV) Treasury shares

ry shares
Purpose of Buy-back 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)
	(	- 12,213 12,213) -

(I)	Revenue 2020 Revenue from contracts with customers Construction contract revenue $ 1,941,042 Rental income Investment properties (Note 17) Variable lease payments that do not depend on an index or a rate 7 Other lease payments 174,343 174,350 $ 2,115,392 Contract balance December 31,2020 December 31,2019 Trade receivables (Note 10) $ 30,426 $ 124,284 Contract assets - current Sale of properties $ - $ - Contract liabilities - current Sale of properties $ 51,569 $ 621,153			2019	2019
				$ 1,330,458 2,061 143,336 145,397 $ 1,475,855 January1,2019
					$ 85,576 $ 1,975 $ 1,205,820

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.

• 46 -

The contract liabilities at the beginning of the year recognized as revenue for the current year is as follows:

as follows:
From contract liabilities at the start of the year Sale of properties		2020 $ 47,495		2019
				$ 242,615

The credit risk management adopted by the Company for contract assets is the same as that for trade receivables, please refer to Note 10.

25. Net profit

(I) Interest income

Interest income
Bank deposits Net investments in leases Others		2020 $ 1,786 1,723 23 $ 3,532		2019
				$ 2,371 1,346 1,011 $ 4,728

(II) Other gains and losses 2020 Gains on disposals of property, plant and equipment $ - Gains on disposals of investments - Net foreign exchange losses ( 201 ) Net gains(losses) on financial assets at fair value through profit or loss ( 31 ) Others ( 50,318) ($ 50,550) (III) Finance costs 2020 Interest on bank loans $ 371,885 Interest on lease liabilities 9,431 Others 35,768 Less: Amounts included in the cost of qualifying assets ( 10,105) $ 406,979 Relevant information on capitalization of interest is as follows: 2020 Capitalized interest amount $ 10,105 Capitalization rate 0.72%～2.04%		2019
	( ( (	$ 1 79 95 ) 72 19,652) $ 19,595) 2019
	(	$ 384,908 12,884 30,354 40,697) $ 387,449 2019
	$ 40,697 2.04%～2.88%

• 47 -

(IV) Depreciation and amortization

Depreciation and amortization
An analysis of depreciation by function Operating costs Operating expenses An analysis of amortization by function Operating costs Operating expenses		2020 $ 186,169 103,955 $ 290,124 $ - 5,154 $ 5,154		2019
				$ 160,904 154,288 $ 315,192 $ - 5,843 $ 5,843

(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 Total operating costs Operating expenses		2020 $ 7,486 128 218,912 $ 226,526 $ - 226,526 $ 226,526		2019
				$ 7,594 167 213,229 $ 220,990 $ 4,260 216,730 $ 220,990

(VI) Employee compensation and remuneration of directors and supervisors

If the Company records a profit in the year, it shall allocate no less than 0.1% 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.

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.

• 48 -

The Company's board of directors met on March 26, 2021 and March 20, 2020 and passed the proposal for employee compensation and the remuneration of directors and supervisors for 2020 and 2019, respectively, as detailed below:

2019, respectively, as detailed below:
Compensation of employees Remuneration of directors and supervisors	2020 Cash $ 7,200 5,000	2019
		Cash
		$ 4,800 3,300

If there is change in the amount in the annual standalone financial statements on the date of release, it will be treated as a change in accounting estimates and will be adjusted and accounted for in the next year.

The employee compensation distributed as resolved by the board of directors on March 20, 2020 and April 22, 2019, and the amounts recognized in the financial statements are as follows:

Amounts approved in the board of directors’ meeting Amounts recognized in the annual financial statements	2019 Compensation of employees Remuneration of directors and supervisors $ 4,800 $ 3,300 $ 4,800 $ 3,300	2019 Compensation of employees Remuneration of directors and supervisors $ 4,800 $ 3,300 $ 4,800 $ 3,300	2018	2018	2018
	Compensation of employees $ 4,800 $ 4,800		Compensation of employees $ 9,100 $ 7,925	Remuneration of directors and supervisors
					$ 7,500 $ 7,500

The difference above is adjusted to the profit or loss for 2019.

For the information on the Company's employee compensation and the remuneration of directors and supervisors for 2020 and 2019 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		2020 $ 21,451 1,036) $ 20,415		2019
	(			$ 23,628 - $ 23,628

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

expense is as follows:

• 49 -

Profit before income tax Income tax expense calculated at the statutory rate (20%) Nondeductible expense in determining taxable income Tax- exempt income Deductible temporary differences Income tax on unappropriated earnings Investment tax credits Land value increment tax Adjustments for prior year’s tax Loss carryforwards that cannot be retained Income tax expense recognized in profit or loss		2020 $ 643,103 $ 128,621 59,176 442,218 ) 148,614 1,879 939 ) 20,511 1,036 ) 105,807 $ 20,415		2019
	( ( (		( ( (	$ 430,359 $ 86,072 104,280 245,557 ) 105,193 ) 36,055 18,027 ) 5,600 - 160,398 $ 23,628

(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

Loss carryforwards Deductible temporary difference Investment tax credits Major infrastructure projects	December 31,2020 $ 10,184,178 $ 2,065,882 $ 137,200	December 31,2019	December 31,2019
			$ 10,184,178 $ 1,090,477 $ 161,973

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

As of the end of 2020, 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 2024
			$ 57,200 $ 80,000

As of the end of 2020, the relevant information on loss carryforwards:

end	of 2020, the relevant information on loss	carryforwards:
	Balance before deduction $ 370,947 $ 3,456,070 $ 1,874,106 $ 4,483,055	Finalyear for deduction
		2022 2023 2027 2028

(IV) Income tax approval

The profit-seeking enterprise income tax returns filed by the Company up to 2017 have been

approved by the tax collection authority.

• 50 -

27. Earnings per share

Earnings per share
Basic earnings per share Diluted earnings per share		2020 $ 0.69 $ 0.69	Unit: NT$ per share 2019
				$ 0.45 $ 0.45

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		2020 $ 622,688 Unit: In 2020 903,349 739 904,088		2019
				$ 406,731 thousand of shares 2019
				912,308 619 912,927

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 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 party name and relationship
Relatedpartyname 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-JanHldg Rih-Siang Rih-Zuan Wan-Tong Jing-Ding	Relationshipwith the Company
	Joint operator Joint operator Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries Subsidiaries

(Continued)

• 51 -

Relatedpartyname Rih-Ding Hldg Ding-Sheng Ji Sheng Zih Chan Development Co., Ltd. Jing-Jan Retail Business Co., Ltd. (Jing-Jan) Jing-Jan Digital Square Co., Ltd. PritBiotech Co., Ltd. (Prit) Jing-Yang Apartment Building Management and Maintenance Co., Ltd. Radium Foundation Lin Rong Shian Lin Loong-Huan 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

Relationshipwith the Company

Subsidiaries Sub-subsidiary Sub-subsidiary Sub-subsidiary Sub-subsidiary Sub-subsidiary Associate 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 - land

nsactions With Related Parties Property under development - land
2019 Relatedpartycategory/name Lin Rong Shian	Nature ofproject Land	Amount paid in the currentperiod
			$ 782,000

Compared with general non-related party transactions, there is no significant difference.

• 2) Property under development - outsourcing of projects and property under construction

2020

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

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

Relatedpartycategory/name Subsidiaries Sub-subsidiary		2020 $ 48,108 8,801 $ 56,909		2019
				$ 40,055 4,026 $ 44,081

• 4) Operating expenses - property management and consultancy services

Relatedpartycategory/name Subsidiaries Associates Operating expenses - donation Relatedpartycategory/name Substantive related party		2020 $ 4,459 8,414 $ 12,873 2020 $ 5,182		2019
				$ 4,298 24,820 $ 29,118 2019
				$ 4,783

• 5) Operating expenses - donation

• 52 -

• 6) Operating expenses - rent expense

Operating expenses - rent expense
Relatedpartycategory/name Sub-subsidiary Selling and marketing expenses - miscellaneous Relatedpartycategory/name Titan		2020 $ 176 expense 2020 $ 77,149		2019
				$ 114 2019
				$ -

• 7) Selling and marketing expenses - miscellaneous expense

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

2020

2020
Item Project management income Revenue from payment and collection services Gains on disposals of investment property	Related party category/nam e Wan-Da- Tong Wan-Da- Tong Jing-Jan Retail	Amount $ 322,000 2,111 1,125,329 $ 1,449,440	Realized gains for the year $ 4,993 33 - $ 5,026	Unrealized gains $ 162,859 1,068 1,125,329 $ 1,289,256	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

2019

Item Related party category/nam e Amount Realized gains in currentperiod Project management income Wan-Da- Tong $ 322,000 $ 4,922 Revenue from payment and collection services Wan-Da- Tong 2,111 32 $ 324,111 $ 4,954 Trade receivables from related parties Relatedpartycategory/name December 31,2020 KaGaYa $ 5,250				Unrealized gains Basis for recognition of unrealized gains $ 167,852 Sales rate and progress of T9 project 1,101 Sales rate and progress of T9 project $ 168,953 December 31,2019 $ 7,311			Basis for recognition of unrealized gains
		$ 5,250				$ 7,311

• 9) Trade receivables from related parties

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

Relatedpartycategory/name Subsidiaries	December 31,2020 $ 275	December 31,2019	December 31,2019
			$ 1

• 53 -

11) Trade payables to related parties

11)	Trade payables to related parties	Trade payables to related parties	Trade payables to related parties
12) 13)	Relatedpartycategory/name December 31,2020 December 31,2019 Titan $ 306,597 $ 262,112 Joint Control and Operation of Fu-Jou Project in Banqiao - 763,115 Joint operator - 25,662 $ 306,597 $ 1,050,889 Other payables to related parties (excluding borrowings from related parties) Relatedpartycategory/name December 31,2020 December 31,2019 Subsidiaries $ 211 $ 1,177 Sub-subsidiary 302 2 Associates 55 91 $ 568 $ 1,270 Lease-in arrangements Acquisition of right-of-use assets Relatedpartycategory/name 2020 2019 Right-of-use assets Subsidiaries $ - $ 26,091 Lease liabilities Subsidiaries $ - $ 13,223 Interest expenses Substantive related party $ 196 $ 550 Acquisition of investment properties-right-of-use assets Relatedpartycategory/name 2020 2019 Investment property-right-of-use assets Substantive related party $ - $ 6,370 Account title Related party category/name December 31,2020 December 31,2019 Lease liabilities Substantive related party $ 2,122 $ 4,012 Relatedpartycategory/name 2020 2019 Interest expenses Substantive related party $ 82 $ 141			December 31,2019
						$ 1,177 2 91 $ 1,270 2019
						$ 26,091 $ 13,223 $ 550 2019
	Relatedpartycategory/name Investment property-right-of-use assets Substantive related party Account title Related party category/name Lease liabilities Substantive related party Relatedpartycategory/name Interest expenses Substantive related party
			$		$ 6,370 December 31,2019
							$ 4,012 2019
						$	141

• 54 -

14) Lease-out arrangements

Operating lease

Operating lease
Related party category/name KaGaYa Jing-Jan Subsidiaries Sub-subsidiary Substantive related party		2020		% of the account balance 34 19 4 - 1 58		2019
		Amount $ 60,000 32,720 6,807 777 863 $ 101,167				Amount $ 62,061 - 7,937 680 857 $ 71,535		% of the account balance
								43 - 5 - 1 49

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, 2020 and 2019, the related parties provided the assets below as collateral for the Company’s loans and guarantees:

Relatedpartycategory/name Substantive related party Rong Shian Lin et al. Subsidiaries	December 31,2020 Securities Buildings and land in Beitou District, Taipei City, and securities	December 31,2019
		Securities and bonds under repurchase agreement Buildings and land in Beitou District, Taipei City, securities, bonds under repurchase agreement, and time deposits

• (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.

• (3) As of December 31, 2020, KaGaYa issued a guarantee note of NT$60,000 thousand for

leasing a hot spring hotel from the Company.

16) Bonds payable

The Company's first private placement of domestic unsecured ordinary bonds on July 8, 2016

was acquired by Jing-Jan Retail and a sub-subsidiary in the amount of NT$203,000 thousand and

NT$97,000 thousand respectively. The main conditions for the issue are as follows:

• (1) Total amount of issue: NT$300,000 thousand.

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

• (3) Interest rate: 3% per annum.

• (4) Duration: 3 years (July 8, 2016 to July 8, 2019).

• (5) The Company has redeemed the bonds on July 8, 2019.

• 55 -

The Company paid NT$4,636 thousand for interest to related parties due to the issue of the above-mentioned bonds in 2019.

• (III) Disposal of investment properties

Relatedpartycategory/name	$ -		Proceeds 2020 2019 $ 2,363,428 $ -	Proceeds 2020 2019 $ 2,363,428 $ -		Gain on disposal(Note)	Gain on disposal(Note)	Gain on disposal(Note)
			2020 $ 2,363,428			2020 $ 1,125,329		2019
Jing-Jan								$ -

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

• (IV) Loans to related parties (recognized in Other receivables from related parties)

Relatedpartycategory/name Interest income Zhao-Yao		2020 $ -		2019
				$ 998

On December 31, 2019, the Company provided short-term loans to its subsidiaries. The interest

rate was 3.57%, which was close to the market interest rate. The loans to subsidiaries in 2019 were unsecured ones.

• (V) Borrowings from related parties (recognized in other payables - related parties)

Relatedpartycategory/name Jing-Jan Hldg Titan Li-Chiang Relatedpartycategory/name Interest expenses Jing-Jan Hldg Li-Chiang Titan Jing-Jan Subsidiaries	December 31,2020 $ 340,000 180,000 110,000 $ 630,000 2020 $ 2,370 2,305 187 - 4 $ 4,866	December 31,2019	December 31,2019
			$ 400,000 - 100,000 $ 500,000 2019
			$ 3,481 1,329 621 776 5 $ 6,212

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.

• (VI) Endorsements and Guarantees

Endorsements and guarantees provided by the Company

Relatedpartycategory/name Subsidiaries Amount of guarantees Actual amount borrowed	December 31,2020 $ 16,524,845 $ 16,524,845	December 31,2019	December 31,2019
			$ 18,325,520 $ 18,325,520

• 56 -

Endorsement s and Guarantees given by related parties

Relatedpartycategory/name Subsidiaries Amount of guarantees Actual amount borrowed	December 31,2020 $ 4,371,000 $ 4,371,000	December 31,2019	December 31,2019
			$ 3,941,000 $ 3,941,000

(VII) Remuneration of key management personnel

The remuneration of directors and other key management personnel in 2020 and 2019 is as

follows Short-term employee benefits Post-employment benefits Total		2020 $ 52,255 1,048 $ 53,303		2019
				$ 62,630 1,224 $ 63,854

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 above-mentioned 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:

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 31,2020 $ 8,424 2,248,075 6,027,294 497,981 843,886 6,253,436 100,058 8,368,093 $ 24,347,247	December 31,2019
			$ 30,040 1,040,728 3,588,468 494,092 804,278 7,678,798 102,615 8,420,428 $ 22,159,447

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 the Company would invest in the construction of residential buildings, offices, and

• 57 -

shopping malls. On December 31, 2020 and 2019, the amount of the performance bond paid by the Company using certificates of time deposits was both NT$118,703 thousand. (II) 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, 2020 and 2019, the amount of the performance bond paid by the Company's using certificates of time deposits was both NT$22,005 thousand. (III) The Company won the bid for the " District 1 and District 2 Land Tender for Fu-Jou Affordable Housing Project Investment Plan " in September 2011. As of December 31, 2020 and 2019, the amount of the performance bond paid by the Company's using certificates of time deposits was both NT$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. In addition, some buyers filed lawsuits claiming that the Company failed to issue a notice of the delivery the housing project in time and that they requested deferral of interest accrued, except for five cases that have been affirmed by the court of second instance (the Company won two cases while winning part of the other three cases) and one case that the Company reach the settlement in the second-instance trial, there are three more cases still on 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 2020. 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 NT$5,165 thousand and NT$4,087 thousand, respectively.

(V) As of December 31, 2020, the Company entered into a construction contract with Titan for the construction of buildings. The total contract price was NT$43,619 thousand, and the unpaid amount was NT$38,202 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

• 58 -

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

• 1) Fair value hierarchy

December 31, 2020

==> picture [383 x 194] intentionally omitted <==

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

Level 1 Level 2 Level 3 Total
Financial assets at FVTPL
Fund beneficiary
certificates $ 2,969 $ - $ - $ 2,969
Financial assets at FVTOCI
Investment in equity
instruments
-Domestic unlisted
shares $ - $ - $ 5,100 $ 5,100
December 31, 2019
Level 1 Level 2 Level 3 Total
Financial assets at FVTOCI
Investment in equity
instruments
Domestic unlisted
shares $ - $ - $ 5,100 $ 5,100
----- End of picture text -----

There were no transfers between Level 1 and Level 2 fair value measurements as of

December 31, 2020 and 2019.

• 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 31,2020 $ 2,969 3,783,722 5,100 17,962 23,305,325	December 31,2019
		$ - 2,151,431 5,100 16,368 24,104,676

• 59 -

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 shortterm borrowings, short-term bills payable, notes payable, accounts payable, other payables, long-term liabilities due within 1 year or 1 operating cycle, 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, accounts payable, 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:

Fair value interest rate risk -Financial assets -Financial liabilities Cash flow interest rate risk -Financial assets -Financial liabilities	December 31,2020 $ 140,753 6,119,855 3,549,971 15,318,598	December 31,2019
		$ 231,625 7,175,525 1,757,152 14,305,639

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.

• 60 -

If the interest rate increased by 100 basis points and all other variables remain unchanged, the Company’s net income before tax for 2020 and 2019 would have decreased by NT$117,686 thousand and NT$125,485 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

• 3)

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 it believes that there is no significant credit risk of concentration of its cash 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 recovery of trade receivables and provides allowances for bad debts, so the possibility of occurrence of the credit risk is extremely low. 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, 2020 and 2019, the undrawn financing facilities (including financing projects) of the Company were NT$2,652,400 thousand and NT$360,028 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.

• 61 -

December 31, 2020

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 $ 123,633 9,643 603,250 - $ 736,526		1–3 months $ 3,913 18,695 694,062 - $ 716,670	3 months to 1 year $ 853,293 82,535 2,785,226 - $ 3,721,054		1-5years $ 825,465 176,138 10,715,213 6,120,000 $17,836,816		Over 5years
								$ 120 - 534,000 - $ 534,120

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

Less than 1 Year Lease liabilities $ 110,873 December 31, 2019	Less than 1 Year		1-5years		5-10years	10-15years	10-15years	15-20years $ -	Over 20 years
			$ 176,138		$ -		$ -		$ -

Non-derivative financial liabilities Non-interest- bearing liabilities Lease liabilities Variable interest rate liabilities Fixed interest rate liabilities	Repayment on demand or less than 1 month $ 66,246 11,986 69,042 1,754,400 $ 1,901,674		1–3 months $ 30,088 23,748 336,756 1,185,200 $ 1,575,792		3 months–1 year $ 1,993,353 102,512 3,074,875 - $ 5,170,740		1-5years $ 473,831 287,665 10,842,976 4,240,000 $15,844,472		Over 5years
									$ - - - - $ -

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

Lease liabilities	Less than 1 Year	Less than 1 Year		1-5years		5-10years	10-15years	10-15years	15-20years $ -	Over 20 years
		$ 138,246		$ 287,665		$ -		$ -		$ -

1. Separately disclosed items

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

3. 1) Financing provided to others: Table 1.

4. 2) Endorsements/Guarantees provided: Table 2.

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

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

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

8. 62 -

9. 6) Disposal of individual real estate at costs of at least NT$300 million or 20% of the paid-in capital: Table 5.

10. 7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 6.

11. 8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: Table 7.

12. 9) Trading in derivative instruments: None.

13. 10) Information on investees: Table 8.

14. (III) Information on investments in Mainland China

15. 1) 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 9.

16. 2) 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.

17. (IV) 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 10.

18. 63 -

Table 1

Radium Life Tech Co., Ltd. and Investees

Financing Provided to Others

For the Year ended December 31, 2020

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

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 1 1 2 2 2 3 3 3 3 3 3 4 5 5	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. 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. Jing-Jan Investment Holdings Co., Ltd. Li Chiang Development Co., Ltd. Rih Siang Property Management Co., Ltd. Rih Siang Property Management Co., Ltd.	Zhao Yao Enterprise Co., Ltd. lRadium-Kagaya International Hotel Co., Ltd. Ji Shun Life Tech Co., Ltd. Rih Yao Development Co., Ltd. CLEVER BASE INVESTMENTS LIMITED Wan Da Tong Enterprise Co., Ltd. Radium Life Tech Co., Ltd. Radium-Kagaya International Hotel Co., Ltd. Zhao-Yao Enterprise Co., Ltd. Wan Da Tong Enterprise Co., Ltd. Ji Shun Life Tech Co., Ltd. Rih Ding Water Enterprise Co., Ltd. Rih Siang Property Management Co., Ltd. Rih Zuan Green Energy Technology Co., Ltd. Zhao Yao Enterprise Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Rih Yao Development Co., Ltd. Ji Shun Life Tech 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	Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes	$ 100,000 20,000 100,000 30,000 2,000 330,000 180,000 20,000 10,000 80,000 150,000 150,000 100,000 20,000 100,000 400,000 130,000 50,000 260,000	$ - 20,000 100,000 - - 240,000 180,000 - 10,000 60,000 150,000 150,000 - 20,000 100,000 340,000 130,000 50,000 120,000	$ - - - - - 110,000 180,000 - 10,000 60,000 - - - 15,000 60,000 340,000 110,000 50,000 60,000	2.3500%~5.3500% 2.3500%~5.3500% 2.3500%~5.3500% 2.6000%~2.8950% 2.6000% 2.6000%~5.3500% 5.3500% 2.9880%~3.2880% 2.9880%~3.2880% 2.9880%~3.2880% 0.7550%~1.0350% 0.7550% 1.0350% 0.7550% 0.7550% 0.7550%~1.0350% 2.5000%~2.6000% 2.6797%~2.9440% 2.4343%~3.0500%	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	$ - - - - - - - - - - - - - - - - - - -	None None None None None None None None None None None None None None None None None None None	$ - - - - - - - - - - - - - - - - - - -	$ 764,933 764,933 764,933 764,933 764,933 764,933 764,933 175,957 175,957 175,957 2,299,875 2,299,875 2,299,875 2,299,875 2,299,875 2,299,875 208,072 772,920 772,920	$ 764,933 764,933 764,933 764,933 764,933 764,933 764,933 175,957 175,957 175,957 2,299,875 2,299,875 2,299,875 2,299,875 2,299,875 2,299,875 208,072 772,920 772,920

(Continued)

• 64 -

No.	Lender	Borrower	Financial Statement Account	Related Party Status	Maximum Balance for the Period	Closing Balance	Amount Drawn	Interest Rate Range	Nature of Financing	Transaction Amount	Reasons for Necessity of Short- term Financing	Loss Allowance	Collateral	Collateral	Limit of Financing to Individual Borrower(Note 1)	Total Limit of Financing Provided (Note 1)
													Name	Value
5 6 7	Rih Siang Property Management Co., Ltd. Ji Sheng Zih Chan Development Co., Ltd. PritBiotech Co., Ltd.	Wan Da Tong Enterprise 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	Yes Yes Yes	$ 120,000 10,000 70,000	$ 120,000 10,000 70,000	$ 120,000 10,000 70,000	2.4343%~3.0500% 0.2253%~0.5207% 1.2550%	Short-term financing Short-term financing Short-term financing	$ - - -	Operating capital Operating capital Operating capital	$ - - -	None None None	$ - - -	$ 772,920 32,684 70,796	$ 772,920 32,684 70,796

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.

• 65 -

Table 2

Radium Life Tech Co., Ltd. and Investees

Endorsements/Guarantees Provided

For the Year ended December 31, 2020

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

No.	Endorser/Guarantor	Endorsee/Guarantee	Endorsee/Guarantee	Limit on Endorsement/ Guarantee Given on Behalf of Each Party	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/Guarant ee to Net Equityin Latest Financial Statements (%)	Aggregate Endorsement/ Guarantee Limit (Note 2)	Endorsement/ Guarantee Given by Parent on Behalf of Subsidiaries	Endorsement/ Guarantee Given by Subsidiaries on Behalf of Parent	Endorsement/ Guarantee Given on Behalf of Companies in Mainland China
		Name	Relationship
0 0 0 0 0 0 0 0 0 0 1 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. Ji Shun Life Tech Co., Ltd. Xin Xiu Ge Hotel 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.	Radium-Kagaya International HotelRadium-Kagaya International Hotel Co., Ltd. Xin Xiu Ge Hotel Co., Ltd.Xin Xiu Ge Hotel Co., Ltd. Rih Yao Development Co., Ltd. Titan Development and Construction Co., Ltd. Zhao Yao Enterprise Co., Ltd. Rih Siang Property Management Co., Ltd. Ji Shun Life Tech Co., Ltd. Rih Ding Water Enterprise 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. 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 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 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 Parent company in which at least 50%of equityis held	$ 35,109,413 35,109,413 35,109,413 35,109,413 35,109,413 35,109,413 35,109,413 35,109,413 35,109,413 35,109,413 2,147,010 2,147,010 134,995 5,736,997 17,249,063 1,560,541	$ 80,000 176,000 904,250 1,453,500 1,896,000 4,882,350 2,297,865 7,310,000 815,130 85,000 134,000 310,000 240,000 1,266,000 3,135,000 100,000	$ 80,000 88,000 904,250 1,169,000 1,836,000 1,982,350 2,297,865 7,310,000 799,380 58,000 134,000 - 120,000 1,066,000 3,135,000 50,000	$ 80,000 88,000 904,250 1,169,000 1,836,000 1,982,350 2,297,865 7,310,000 799,380 58,000 134,000 - 120,000 1,066,000 3,135,000 50,000	$ - - - 650,000 - - - - - - 82,187 - 493 186,000 2,880,000 -	0.68% 0.75% 7.73% 9.99% 15.69% 16.94% 19.63% 62.46% 6.83% 0.50% 18.72% - 266.68% 55.74% 54.42% 9.61%	$ 70,218,826 70,218,826 70,218,826 70,218,826 70,218,826 70,218,826 70,218,826 70,218,826 70,218,826 70,218,826 4,294,019 4,294,019 269,989 11,473,994 34,498,126 3,121,083	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 N Y Y Y Y Y	N 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.

• 66 -

Table 3

Radium Life Tech Co., Ltd. and Investees

Marketable Securities Held

December 31, 2020

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

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December 31,2020	December 31,2020		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. Radium Life Tech Co., Ltd. Ji Shun 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 TCB US Short Duration High Yield Bond Fund Fund Mega Danish Covered Mortgage Bond Index Fund Fund Taiwan Business Bank Eastspring Investments India Bond Fund	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	- 55 3 118 50 5,000 300 500 500	$ 5,100 - 145 1,250 - 52,300 2,969 5,006 4,965	- 0.07% 2.50% 3.70% 16.67% 3.94% - - -	$ 5,100 - 145 1,250 - 52,300 2,969 5,006 4,965

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

• 67 -

Table 4

Radium Life Tech Co., Ltd. and Its Investees

Marketable Securities Acquired or Sold at Costs or Prices at Least NT$300 Million or 20% of the Paid-in Capital For the Year ended December 31, 2020

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

Company Name	Type and Name of Marketable Securities	Financial Statement Account	Counterpart y	Relationsh ip	BeginningBalance	BeginningBalance	Acquisition	Acquisition		Disposal	Disposal	Disposal	Others	Others	Ending	Balance
					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
Titan Development and Construction Co., Ltd. Jing-Jan Investment Holding Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd. Radium Life Tech Co., Ltd.	Bills International Bills Finance Corporation - bills under repurchase agreement Bills International Bills Finance Corporation - bills under repurchase agreement Stock Rih Ding Circular Economy Investment Holding Co., Ltd. Stock Ding Sheng Green Energy Technology Co., Ltd. Stock Rih Ding Water Enterprise Co., Ltd.	Financial assets at amortized cost - current Financial assets at amortized cost - current Investments accounted for the equity method Investments accounted for the equity method Investments accounted for the equity method	None None Rih-Ding Circular Economy Investme nt Holding Co., Ltd. Rih-Ding Circular Economy Investme nt Holding Co., Ltd. Rih-Ding Circular Economy Investme nt Holding Co.,Ltd.	None None Subsidiary Subsidiary Subsidiary	- - - 5,000 355,940	$ 345,000 - - 50,122 4,466,864	- - 63,500 - -	$ 4,390,000 735,000 5,097,197 (Notes 2 & 5) - -	- - - 5,000 421,640	$ 4,735,000 735,000 - - -	$ 4,735,000 735,000 - 49,913 (Note 2) 4,747,699 (Note 2)	$ - - - - -	- - - - 65,700 (Note 4)	$ - - 616,777 (Note 3) ( 209) (Note 3) 280,835 (Note 3)	- - 63,500 - -	$ - - 5,713,974 - -

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

Note 2: 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.

Note 3: It is the share of comprehensive income recognized by the Company using the equity method and the effect of IFRS16.

Note 4: This is the stock dividends distributed by investees in the current period.

Note 5: It is for capital stock in the amount of NT$299,585 thousand for incorporation.

• 68 -

Table 5

Radium Life Tech Co., Ltd. and Its Investees

Disposal of Individual Property at Costs of at Least NT$300 Million or 20% of the Paid-in Capital For the Year ended December 31, 2020

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

Seller	Property	Event Date	Original Acquisition Date	Carrying Amount	Transaction Amount	Collection	Gain(Loss) on Disposal	Counterparty	Relationship	Purpose of Disposal	Price Reference	Terms
Radium Life Tech Co., Ltd.	5F, No. 157 as well as 5F , 5F- 1, 5F-2, No. 159, Zhongyang Road, Xindian District, New Taipei City	2020.12.14	2013.12.11	$ 1,238,099	$ 2,363,428	Received	$1,125,329 (Note)	Jing-Jan Retail Business Co.,	Sub-subsidiary	To effectively sell assets and increase working capital	The value appraised by a real estate appraiser’s office and market conditions are adopted as a reference	None

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

• 69 -

Table 6

Radium Life Tech Co., Ltd. and Its 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, 2020

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

Buyer/Seller	Related Party	Relationship		Transaction	Details (Note 1)		Abnormal	Trancaction	Note/Trade receiv	ables (Payable)	Note
			Purchase/Sale	Amount	% of Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% of Total
Titan Development and Construction Co., Ltd. Titan Development and Construction Co., Ltd. Wan Da Tong Enterprise Co., Ltd. Rih Ding Water Enterprise Co., Ltd. Rih Ding Water Enterprise Co., Ltd. Ji Shun Life Tech Co., Ltd. Ding Sheng Green Energy Technology Co., Ltd.	Rih Ding Water Enterprise Co., Ltd. Ji Shun Life Tech Co., Ltd. Jing-Jan Retail Business Co., Ding Sheng Green Energy Technology Co., Ltd. Titan Development and Construction Co., Ltd. Titan Development and Construction Co., Ltd. Rih Ding Water Enterprise Co., Ltd.	Associate Associate Associate Associate Associate Associate Associate	Sales Sales Sales Construction costs Construction costs Construction costs	( $ 838,061 ) ( 403,006 ) ( 501,161 ) 348,289 911,852 299,884 ( 420,143 )	( 55.89% ) ( 26.88% ) ( 60.94% ) 27.63% 72.33% 100% ( 100% )	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	- - - - - - -	－ － － － － － －	$ 373,821 - 2,014 ( 92,864 ) ( 663,437 ) ( 99,752 ) 74,243	81.08% - 34.81% ( 12.28% ) ( 87.72% ) ( 100% ) 100%

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.

• 70 -

Table 7

Radium Life Tech Co., Ltd. and Its Investees

Receivables from Related Parties Amounting to at Least NT$100 million or 20% of the Paid-in Capital December 31, 2020

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

Company Name	Name of Counterparty	Relationship	Balance of Receivables from Related Parties	Turnover Rate	Overdu	e	Amounts Received Subsequent Period	Allowance for Impairment Loss	Note
					Amount	Actions Taken
Titan Development and Construction Co., Ltd. Titan Development and Construction Co., Ltd. Titan Development and Construction Co., Ltd. Li Chiang Development Co., Ltd. Rih Siang Property Management Co., Ltd. Jing-Jan Investment Holding Co., Ltd.	Radium Life Tech Co., Ltd. Rih Ding Water Enterprise Co., Ltd. Wan Da Tong Enterprise Co., Ltd. Radium Life Tech Co., Ltd. Wan Da Tong Enterprise Co., Ltd. Radium Life Tech Co., Ltd.	Parent company Associate Associate Parent company Associate Parent company	$ 180,000 373,821 110,000 110,000 120,000 340,000	- 3.37 - - - -	$ - - - - - -	－ － － － － －	$ - 142,673 - - - -	$ - - - - - -	As of January 31, 2021 (Note 1) As of January 31, 2021 As of January 31, 2021 (Note 1) As of January 31, 2021 (Note 1) As of January 31, 2021 (Note 1) As of January 31, 2021 (Note 1)

Note 1: Other receivables.

• 71 -

Table 8

Radium Life Tech Co., Ltd. and Its Investees

Information on Name and Location of Investees

For the Year ended December 31, 2020

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

InvestorCompany	InvesteeCompany	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	As	of December 31,2020	of December 31,2020	Net Income(Loss) of the Investee	Share of Proft (Loss)	Note
				December 31,2020	December 31,2019	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. 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. Rih Ding Water Enterprise Co., Ltd. Jing-Jan Investment Holding Co., Ltd. Rih Siang Property Management Co., Ltd. Rih Zuan Green Energy Technology Co., Ltd. Ding Sheng Green Energy 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 No. 177, Section 1, Fuhua Road, Luzhu District, Taoyuan City 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 Housing and Building Development and Rental Hot spring hotel Housing and Building Development and Rental Investment Regular hotel Sewage Treatment Investment Housing and Building Development and Rental Energy Technical Services Energy Technical Services	$ 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 -	$ 75,000 1,000,000 950,000 1,113,455 968,650 1,248,666 953,363 2,350,000 USD 2,080 421,500 2,790,000 3,039,339 2,300,000 40,500 50,000	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 -	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% -	$ 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 -	( $ 56,102 ) ( 44,928 ) ( 47,664 ) ( 7,993 ) 122,342 227,048 ( 18,103 ) ( 118,654 ) ( 1,438 ) ( 4,028 ) 879,241 315,675 ( 27,747 ) 282 20,355	( $ 54,845 ) ( 44,928 ) ( 47,665 ) ( 7,987 ) 138,814 64,195 ( 16,511 ) ( 118,654 ) ( 1,438 ) ( 4,533 ) 280,835 233,588 ( 27,760 ) 376 ( 209 )	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 (Note 1) Subsidiary (Note 1) Sub-subsidiary (Notes 1 & 8) Subsidiary (Notes 1 & 11) Subsidiary (Note 1) Subsidiary (Note 1) Sub-subsidiary (Notes 1 & 8)

(Continued)

• 72 -

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	As	of December 31,2020	of December 31,2020	Net Income(Loss) of the Investee	Share of Proft (Loss)	Note
				December 31,2020	December 31,2019	Number of Shares (in Thousands)	Percentage (%)	Carrying Amount
Radium Life Tech Co., Ltd. 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 Holding Co., Ltd. Jing-Jan Investment Holding Co., Ltd. Jing-Jan Retail Business Co., CLEVER BASE INVESTMENTS LIMITED CLEVER BASE INVESTMENTS LIMITED 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.	Wan Tong Digital Technology Co., Ltd. Rih Ding Circular Economy Investment Holding Co., Ltd. Jing Ding Green Energy Technology Co., Ltd. Jing-Jan Investment Holding Co., Ltd. Ji Sheng Zih Chan Development Co., Ltd. Jing-Yang Apartment Building Management and Maintenance Co., Ltd. Jing-Jan Retail Business Co., Wan Da Tong Enterprise Co., Ltd. Jing-Jan Digital Square Co., Ltd. SHARP CHINA INVESTMENTS LIMITED Rih Ding Investments Limited Kai Chuang International Limited. Prit Biotech 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, Taipei City 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 1F, 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 Vistra Corporate Services Contre, Ground Floor NPF Building, Beach Road, Asia , Samoa 15/F., BOC Group Life Assurance Tower, 136 Des Voeux Road Central, Central, Hong Kong The Grand Pavilion Commercial Centre, Oleander Way, 802 West Bay Road, P.O. Box 32052, Grand Cayman KY1- 1208, Cayman Islands 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	Retail Investment Energy Technical Services Investment Housing and Building Development and Rental Condominium buildings management service Shopping mall business Housing and Building Development and Rental Retail Investment Investment Investment Biotechnology and cosmetic manufacturing Sewage Treatment Energy Technical Services Energy Technical Services	$ 27,000 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	$ 27,000 - - 1,832,017 87,000 9,800 509,201 4,295,288 50,000 USD 2,010 USD 30 USD 40 90,000 - - -	2,700 63,500 740 55,195 8,700 980 45,001 374,015 2,000 - 30 - 9,000 449,640 5,000 660	90.00% 100.00% 37.00% 36.80% 100.00% 49.00% 75.00% 71.65% 100.00% - 100.00% - 37.31% 100.00% 100.00% 33.00%	$ 8,477 5,713,974 7,200 2,115,885 81,711 10,003 866,125 4,449,836 17,131 - 170 - 78,495 5,626,105 70,475 6,421	( $ 13,198 ) 616,777 ( 541 ) 315,675 ( 476 ) 7,270 203,214 227,048 553 ( 352 ) ( 68 ) - ( 18,360 ) 879,241 20,355 ( 541 )	( $ 11,878 ) 616,777 ( 200 ) 116,157 ( 476 ) 3,562 152,415 162,675 553 ( 352 ) ( 68 ) - ( 6,850 ) 598,406 20,564 ( 179 )	Subsidiary (Note 1) Subsidiary (Note 1) Subsidiary (Notes 1 & 9) Subsidiary (Notes 1 & 12) Sub-subsidiary (Note 1) (Note 1) Sub-subsidiary (Note 1) Subsidiary (Note 1) Sub-subsidiary (Note 1) Sub-subsidiary (Notes 1 & 7) Sub-subsidiary (Note 1) Sub-subsidiary (Notes 1 & 6) Sub-subsidiary (Notes 1 & 10) Sub-subsidiary (Notes 1 & 8) Sub-subsidiary (Notes 1 & 8) Subsidiary (Notes 1 & 9)

• 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 NT$155,686 thousand has not yet been deducted from the carrying amount.

• Note 3: The unrealized gains between associates of NT$163,927 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 Kai-Chuang International Limited. was completed on April 8, 2020.

• Note 7: The deregistration of Sharp China Investments Limited was completed on April 17, 2020.

• Note 8: 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.

• Note 9: Jing-Ding was established on September 18, 2020, and the establishment was approved by and registered with the Central Region Office, Ministry of Economic Affairs.

• Note 10: The accumulated impairment of NT$12,460 thousand has not yet been deducted from the carrying amount.

• Note 11: The unrealized gains between associates of NT$1,125,329 thousand has not yet been deducted from the carrying amount.

• Note 12: The unrealized gains between associates of NT$143,454 thousand has not yet been deducted from the carrying amount.

• 73 -

Table 9

Radium Life Tech Co., Ltd. and Its Investees

Information on investments in Mainland China

For the Year ended December 31, 2020

(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 January 1,2020	Accumulated Outward Remittance for Investment from Taiwan as of January 1,2020	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of December31,2020	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain(Loss) (Note 2)	Carrying Amount as of December31,2020	Accumulated Repatriation of Investment Income as of December31,2020
							Outward	Inward
LiJiang Business Consulting (Shanghai) Linited.	Business and Corporate Management Consulting Services		$ 52,288 ( US$1,700,000 )	Note 1(1)	$ 52,288 ( US$1,700,000 )		$ -	$ -	$ 52,288 ( US$1,700,000 )	( $ 1,905 )	100%	( $ 1,905 ) (2)B	$ 2,959	$ -
						Upper Limit on the Amount of Investments Stipulated by the Investment Commission of MOEA $ 7,021,882 (Note 5)
Accumulated Outward Remittance for Investments in Mainland China as of		Investment Amount Authorized by the Investment Commission of MOEA				Upper Limit on the Amount of Investments Stipulated by the Investment Commission of MOEA
NT$56,848 (US$1,840,000)		NT$52,688 (US$1,850,000) (Note 4)				$ 7,021,882 (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, 2020. 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 thousand was not remitted back to Taiwan due to losses.

• 74 -

Table 10

Radium Life Tech Co., Ltd.

Information on Major Shareholders

December 31, 2020

Name of Major Shareholder	Shares	Shares
	Number of Shares	Percentage of Ownership (%)
Rong Shian Lin CTBC Bank Co., Ltd. In custody for Verivia PCC Golden Century Co., Ltd. Ding-ShengDigital LifeCo.,Ltd.	111,682,177 82,131,547 58,223,051 49,260,000	12.40% 9.12% 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.

• 75 -

§Table of Contents of Statements of Significant Accounting Titles§

Item Statement of Assets, Liabilities and Equity Items Statement of Cash and Cash Equivalents Statement Statement of Changes in Property Under Development Statement Statement of Other Current Assets Note 13 Statement of Investments Accounted for Using Equity Method Statement Statement of Changes in Property, Plant and Equipment Note 15 Statement of Changes in Accumulated Depreciation of Property, Plant and Equipment Note 15 Statement of Changes in Accumulated Impairment of Property, Plant and Equipment Note 15 Statement of Changes in Investment Property Note 17 Statement of Changes in Accumulated Depreciation of Investment Property Note 17 Statement of Changes in Accumulated Impairment of Investment Property Note 17 Statement of Changes in Right-of-use Assets Statement Statement of Contract Liabilities Statement Statement of Short-term Borrowings Statement Statement of Long-term Borrowings Statement Statement of Lease Liabilities Statement Statement of Profit or Loss Statement of Operating Revenue Statement Statement of Operating Costs Statement Statement of Operating Expenses Statement Statement of Employee Benefit, Depreciation, and Amortization Expenses of the Year by Function Statement

No./Index

1 2 3 4 5 6 7 8 9 10 11 12

• 76 -

Statement 1

Radium Life Tech Co., Ltd.

Statement of Cash and Cash Equivalents For the Year Ended December 31, 2020 (In Thousands of New Taiwan Dollars)

Item Cash on hand Petty cash Demand deposits Checking accounts Foreign currency deposits Total		Amount
		$ 318 1,430 1,259,796 2,542 3,575 $ 1,267,661

• 77 -

Statement 2

Radium Life Tech Co., Ltd.

Statement of Changes in Property Under Development 2020

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

Item Sanzhi Project - East Side	Balance at January 1,2020 $ 804,278	Cost of Project $ 29,503		Capitalized Interest $ 10,105		Balance at December 31,2020
						$ 843,886

• 78 -

Statement 3

Radium Life Tech Co., Ltd.

Statement of Changes in Investments Accounted for Using Equity Method 2020

(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 Rih-Ding Water Jing-Jan Hldg Rih-Siang Rih-Zuan Ding-Sheng Wan-Tong Digital LiJiang (Shanghai) Rih-Ding Hldg Jing-Ding Total Less: Accumulated impairment Less: Profit or loss between associates	Balance at January1,2020 Number of Shares (in Thousands) Amount 52,000 $ 528,337 100,000 565,108 95,000 796,123 38,773 628,871 120,000 1,281,111 148,000 1,772,186 15,000 131,418 235,000 1,582,433 2,080 6,856 125 328,956 355,940 4,466,864 91,590 3,583,376 230,000 1,960,059 4,050 50,353 5,000 50,122 2,700 20,355 - 4,825 - - - - 17,757,353 ( 155,686 ) ( 168,953) $ 17,432,714	Balance at January1,2020 Number of Shares (in Thousands) Amount 52,000 $ 528,337 100,000 565,108 95,000 796,123 38,773 628,871 120,000 1,281,111 148,000 1,772,186 15,000 131,418 235,000 1,582,433 2,080 6,856 125 328,956 355,940 4,466,864 91,590 3,583,376 230,000 1,960,059 4,050 50,353 5,000 50,122 2,700 20,355 - 4,825 - - - - 17,757,353 ( 155,686 ) ( 168,953) $ 17,432,714				Changes in Investments	Changes in Investments				Others (Note 1) $ - - - 3,365 247 ) - - - - - - - - - - - - - - $ 3,118 $ - $ -	Ba	lance at December 31,2020	lance at December 31,2020	Amount $ 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 7,200 18,837,923 155,686 ) 1,289,256) $ 17,392,981		Net Equity $ 715,670 520,180 748,458 439,893 1,912,332 6,210,518 110,470 1,463,779 5,434 4,234 ) 5,629,263 5,749,688 1,932,299 46,438 70,475 9,419 2,959 5,713,974 19,459 $ 31,296,474	Note
			Number of Shares (in Thousands) 18,000 - - - - - - - - - ( 355,940 ) - - - ( 5,000 ) - - 63,500 740	A	mount of Increase (Decrease) $ 243,000 - - - 170,000 ) 75,699 ) - - - - 4,747,699 ) 214,321 ) - 8,640 ) 49,913 ) - - 5,097,197 7,400 $ 81,325 $ - $ 1,120,303)		Investment Gains (Losses) $ 54,845 ) 44,928 ) 47,665 ) 7,987 ) 138,814 64,195 16,511 ) 118,654 ) 1,438 ) 4,533 ) 280,835 233,588 27,760 ) 376 209 ) 11,878 ) 1,905 ) 616,777 200) $ 996,072 $ - $ -		Cumulative Translation Adjustment $ - - - - - - - - 16 - - - - - - - 39 - - $ 55 $ - $ -
	Number of Shares (in Thousands) 52,000 100,000 95,000 38,773 120,000 148,000 15,000 235,000 2,080 125 355,940 91,590 230,000 4,050 5,000 2,700 - - -											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	Ownership (%) 100 100 100 99.93 100 28.35 100 100 100 100 - 61.06 100 90 - 90 100 100 37
		( (		( ( ( ( ( ( (		( ( ( ( ( ( ( ( ( ( ( ( (				(				( (		(		Note 2 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 NT$8,368,093 thousand.

• 79 -

Statement 4

Radium Life Tech Co., Ltd.

Statement of Changes in Right-of-use Assets

2020

(In Thousands of New Taiwan Dollars)

Cost Balance at January 1, 2020 Additions Deductions Lease terminated in current period Balance at December 31, 2020 Accumulated depreciation and impairment Balance at January 1, 2020 Depreciation expenses Deductions Lease terminated in current period Balance at December 31, 2020 Carrying amount at December 31, 2020		Buildings $ 26,090 - 26,090 ) - $ - $ 13,045 13,045 26,090 ) - $ - $ -	Transportation equipment $ 5,762 1,616 - ( 968) $ 6,410 $ 1,245 2,087 - ( 363) $ 2,969 $ 3,441		Total
	( (		( (	( ( ( (	$ 31,852 1,616 26,090 ) 968) $ 6,410 $ 14,290 15,132 26,090 ) 363) $ 2,969 $ 3,441

• 80 -

Statement 5

Radium Life Tech Co., Ltd.

Statement of Contract Liabilities December 31, 2020 (In Thousands of New Taiwan Dollars )

Item Fu-Jou District 1 Daqiao Sanzhi Project - East Side Xidian		Amount
		$ 35,383 8,894 6,800 492 $ 51,569

• 81 -

Statement 6

Radium Life Tech Co., Ltd.

Statement of Short-term Borrowings December 31, 2020

(In Thousands of New Taiwan Dollars )

Typeand Creditor Credit borrowing - Chang Hwa Bank Credit borrowing - Chang Hwa Bank Collateralized borrowing - CTBC Bank Collateralized borrowing - Yuanta Bank Collateralized borrowing - Taiwan Business Bank Collateralized borrowing - Taiwan Business Bank Collateralized borrowing - Bank Of Panhsin Collateralized borrowing - Entie Bank Collateralized borrowing - Entie Bank Collateralized borrowing - CTBC Bank	Contract Period 2021.03.31 2021.03.31 2021.04.01 2021.09.29 2021.08.25 2021.08.25 2021.09.21 2021.08.05 2021.12.25 2021.05.31	Interest Rate (%) 2.75 2.00 2.13 2.75 3.07 3.07 2.2 2.622 2.886 1.23		Balance $ 60,000 547,355 483,000 21,000 280,000 200,000 300,000 540,000 63,250 - $ 2,494,605	Loan Commitments $ 60,000 550,000 483,000 21,000 280,000 200,000 300,000 540,000 270,000 400,000 $ 3,104,000	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 Please refer to Note 29 Please refer to Note 29 Please refer to Note 29

• 82 -

Statement 7

Radium Life Tech Co., Ltd.

Statement of Long-term Borrowings December 31, 2020

(In Thousands of New Taiwan Dollars)

Name Yuanta Bank Yuanta Bank Yuanta Bank Yuanta Bank Yuanta Bank Yuanta Bank Yuanta Bank King's Town Bank King's Town Bank King's Town Bank King's Town Bank King's Town Bank King's Town Bank King's Town Bank King's Town Bank King's Town Bank Hwatai Bank Bank of Taiwan Bank of Taiwan CTBC Bank CTBC Bank International Bills Finance Corporation International Bills Finance Corporation Less: Arrangement fee of syndicated loan Less: Current portion of long-term borrowings and bonds payable Add: Arrangement fee of long-term borrowings due within one year or one operating cycle Long-term borrowings due after one year	Summary Collateralized borrowing Collateralized borrowing Collateralized borrowing Collateralized borrowing Collateralized borrowing Collateralized borrowing Collateralized borrowing Collateralized borrowing Collateralized borrowing Collateralized borrowing Collateralized borrowing Collateralized borrowing Unsecured borrowings Collateralized borrowing Collateralized borrowing Collateralized borrowing Collateralized borrowing Collateralized borrowing Collateralized borrowing Collateralized borrowing Collateralized borrowing Collateralized borrowing Collateralized borrowing		Amount $ 269,500 640,000 618,500 411,000 673,480 317,000 499,977 594,000 130,000 200,000 330,466 2,736,000 263,150 174,800 363,290 681,980 242,514 1,425,000 1,000,000 229,647 426,819 479,510 119,878 12,663 ) 1,437,443 ) 3,000 $ 11,379,405	Contract Period 2023.9.25 2023.9.25 2023.9.25 2022.9.29 2022.11.29 2023.9.25 2022.12.8 2026.3.26 2021.3.25 2021.3.25 2022.6.19 2022.8.4 2022.8.5 2022.8.22 2024.9.26 2028.2.16 2022.4.20 2023.12.26 2023.12.26 2022.8.22 2022.8.22 2021.2.24 2021.2.24	Interest Rate 2.680 2.680 2.680 2.550 2.230 2.680 1.800 2.400 1.792 1.542 1.937 1.937 1.937 2.442 2.250 2.000 2.100 2.8013 2.8013 2.0119 2.0119 2.928 2.928	Collateral 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 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 Please refer to Note 29 Please refer to Note 29 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 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	Note
		( (					Note Note Note Note

Note: This is the amount of syndicated loans provided by groups of banks, including a group of 5 banks, including Bank of Taiwan, and the other group of 4 banks, including CTBC Bank.

• 83 -

Statement 8

Radium Life Tech Co., Ltd.

Statement of Lease Liabilities December 31, 2020

(In Thousands of New Taiwan Dollars)

Item Transportation equipment Sublease of buildings Total

Amount $ 3,583 273,091 $ 276,674

• 84 -

Statement 9

Radium Life Tech Co., Ltd.

Statement of Operating Revenue 2020

(In Thousands of New Taiwan Dollars)

Item

Construction contract revenue Rental income

Amount $ 1,941,042 174,350 $ 2,115,392

• 85 -

Statement 10

Radium Life Tech Co., Ltd.

Statement of Operating Costs 2020

(In Thousands of New Taiwan Dollars)

Item Construction cost Rental cost Other operating costs

Amount $ 1,512,087 230,897 ( 7,502 ) $ 1,735,482

• 86 -

Statement 11

Radium Life Tech Co., Ltd.

Statement of Operating Expenses

2020

(In Thousands of New Taiwan Dollars)

Name Salaries Commission Depreciation Bank charges Miscellaneous fees Others (Note)	Selling and marketing expenses $ 1,220 49,621 2,556 - 143,431 113,846 $ 310,674		General and administrative expenses $ 194,653 - 101,399 321,043 17,348 47,169 $ 681,612		Total
					$ 195,873 49,621 103,955 321,043 160,779 161,015 $ 992,286

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

• 87 -

Statement 12

Radium Life Tech Co., Ltd.

Statement of Labor, Depreciation, Depletion, and Amortization by Function

2020 and 2019

(In Thousands of New Taiwan Dollars)

Employees’ benefits expenses Salaries Labor and health insurance Pension Remuneration to directors Other employee benefits expenses Depreciation Amortization			2020		Total $ 183,006 13,618 7,613 9,580 12,709 $ 226,526 $ 290,124 $ 5,154			2019
	Classified as operatingcosts $ - - - - - $ - $ 186,169 $ -		Classified as operating expenses $ 183,006 13,618 7,613 9,580 12,709 $ 226,526 $ 103,955 $ 5,154			Classified as operatingcosts $ 3,541 343 241 - 135 $ 4,260 $ 160,904 $ -		Classified as operating expenses $ 178,299 13,486 7,520 7,210 10,215 $ 216,730 $ 154,288 $ 5,843		Total
										$ 181,840 13,829 7,761 7,210 10,350 $ 220,990 $ 315,192 $ 5,843

• Note 1: The monthly average number of employees of the Company in 2020 and 2019 was 167 and 168, respectively, and 3 directors did not serve as employees concurrently.

• Note 2: (1) The average employee benefits expense for the year was NT$1,323 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 NT$1,296 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 NT$1,116 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 NT$1,102 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 1.3% ("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

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.

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