Stock Code:4119

SCI PHARMTECH, INC. AND SUBSIDIARIES

Consolidated Financial Statements

With Independent Auditors’ Review Report For the Six Months Ended June 30, 2022 and 2021

Address: No.61, LN. 309, HAIHUN.RD., LUZHU DIST., TAOYUAN CITY 33856, TAIWAN (R.O.C) Telephone: (03)354-3133

The independent auditors’ review report and the accompanying consolidated financial statements are the English translation of the Chinese version prepared and used in the Republic of China. If there is any conflict between, or any difference in the interpretation of the English and Chinese language independent auditors’ review report and consolidated financial statements, the Chinese version shall prevail.

Contents 1. Cover Page 2. Table of Contents 3. Independent Auditors’ Review Report 4. Consolidated Balance Sheets 5. Consolidated Statements of Comprehensive Income 6. Consolidated Statements of Changes in Equity 7. Consolidated Statements of Cash Flows 8. Notes to the Consolidated Financial Statements (1) Company history (2) Approval date and procedures of the consolidated financial statements (3) New standards, amendments and interpretations adopted (4) Summary of significant accounting policies (5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty (6) Explanation of significant accounts (7) Related-party transactions (8) Pledged assets (9) Commitments and contingencies (10) Losses Due to Major Disasters (11) Subsequent Events (12) Other (13) Other disclosures (a) Information on significant transactions (b) Information on investees (c) Information on investment in mainland China (d) Major shareholders (14) Segment information	Page
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Contents
1. Cover Page
2. Table of Contents
3. Independent Auditors’ Review Report
4. Consolidated Balance Sheets
5. Consolidated Statements of Comprehensive Income
6. Consolidated Statements of Changes in Equity
7. Consolidated Statements of Cash Flows
8. Notes to the Consolidated Financial Statements
(1)
Company history
(2)
Approval date and procedures of the consolidated financial statements
(3)
New standards, amendments and interpretations adopted
(4)
Summary of significant accounting policies
(5)
Significant accounting assumptions and judgments, and major sources
of estimation uncertainty
(6)
Explanation of significant accounts
(7)
Related-party transactions
(8)
Pledged assets
(9)
Commitments and contingencies
(10) Losses Due to Major Disasters
(11) Subsequent Events
(12) Other
(13) Other disclosures
(a) Information on significant transactions
(b) Information on investees
(c) Information on investment in mainland China
(d) Major shareholders
(14) Segment information

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KPMG

台北市110615信義路5段7號68樓(台北101大樓) 電話 Tel + 886 2 8101 6666 68F., TAIPEI 101 TOWER, No. 7, Sec. 5, 傳真 Fax + 886 2 8101 6667 Xinyi Road, Taipei City 110615, Taiwan (R.O.C.) 網址 Web home.kpmg/tw

Independent Auditors’ Review Report

To the Board of Directors of SCI Pharmtech, Inc.:

Introduction

We have reviewed the accompanying consolidated balance sheets of SCI Pharmtech, Inc. and its subsidiaries as of June 30, 2022 and 2021, and the related consolidated statements of comprehensive income for the three months and six months ended June 30, 2022 and 2021, and changes in equity and cash flows for the six months ended June 30, 2022 and 2021, and notes to the consolidated financial statements, including a summary of significant accounting policies. Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “ Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China. Our responsibility is to express a conclusion on the consolidated financial statements based on our reviews.

Scope of Review

Except as explained in the Basis for Qualified Conclusion paragraph, we conducted our reviews in accordance with Statement of Auditing Standard 65, “ Review of Financial Information Performed by the Independent Auditor of the Entity”. A review of the consolidated financial statements consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with the generally accepted auditing standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Basis for Qualified Conclusion

As stated in Note 6(g), the other equity accounted investments of the SCI Pharmtech, Inc. and its subsidiaries in its investee companies of $47,403 thousand and $65,037 thousand as of June 30, 2022 and 2021, respectively, and its equity in net earnings (losses) on these investee companies of $(2,875) thousand, $(963) thousand, $(5,044) thousand and $(963) thousand for the three months and six months ended June 30, 2022 and 2021, respectively, were recognized solely on the financial statements prepared by these investee companies, but not reviewed by independent auditors.

KPMG, a Taiwan partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee.

3-1

Qualified Conclusion

Except for the adjustments, if any, as might have been determined to be necessary had the consolidated financial statements of certain equity accounted investee companies described in the Basis for Qualified Conclusion paragraph above been reviewed by independent auditors, based on our reviews, nothing has come to our attention that causes us to believe that the accompanying consolidated financial statements, do not present fairly, in all material respects, the consolidated financial position of SCI Pharmtech, Inc. and its subsidiaries as of June 30, 2022 and 2021, and of its consolidated financial performance for the three months and six months ended June 30, 2022 and 2021, as well as its consolidated cash flows for the six months ended June 30, 2022 and 2021 in accordance with the Regulations Governing the Preparation of Financial Reports by Securities Issuers and International Accounting Standard 34, “Interim Financial Reporting” endorsed and issued into effect by the Financial Supervisory Commission of the Republic of China.

The engagement partners on the review resulting in this independent auditors’ report are Kuan-Ying Kuo and Shu-Min Hsu.

KPMG

Taipei, Taiwan (Republic of China) August 10, 2022

Notes to Readers

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

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards as of June 30, 2022 and 2021

SCI PHARMTECH, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

June 30, 2022, December 31, 2021, and June 30, 2021 (expressed in thousands of New Taiwan dollars)

Assets Current assets: 1100 Cash and cash equivalents (note 6(a)) 1110 Current financial assets at fair value through profit or loss (note 6(b)) 1170 Notes and accounts receivable, net (notes 6(d) and 6(s)) 1206 Other receivables (notes 6(f) and 10) 1310 Inventories, net (note 6(e)) 1470 Other current assets Non-current assets: 1518 Non-current financial assets at fair value through other comprehensive income (note 6(c)) 1550 Investments accounted for using equity method (note 6(g)) 1600 Property, plant and equipment (notes 6(h), 7 and 8) 1755 Right-of-use assets (note 6(i)) 1780 Intangible assets 1840 Deferred tax assets 1900 Other non-current assets (notes 6(h) and 6(v)) Total assets	June 30, 2022 Amount % $ 404,282 9 131,275 3 136,756 3 118,822 3 462,589 10 63,877 1 1,317,601 29 82,328 2 47,403 1 2,574,930 57 1,311 - 56,421 1 241,552 5 245,467 5 3,249,412 71 $ 4,567,013 100	December 31, 2021 Amount % 332,231 8 360,401 9 82,976 2 265,586 6 294,182 7 61,934 1 1,397,310 33 72,521 2 52,447 1 2,097,997 50 2,134 - 60,290 2 241,552 6 265,644 6 2,792,585 67 4,189,895 100	June 30, 2021 Amount % 427,889 10 624,375 15 137,153 3 525,316 13 249,778 6 50,333 1 2,014,844 48 58,115 1 65,037 2 1,584,831 37 2,956 - 64,257 1 256,127 6 207,624 5 2,238,947 52 4,253,791 100 Liabilities and Equity Current liabilities: 2100 Total short-term borrowings (note 6(j)) 2170 Notes and accounts payable 2130 Current contract liabilities (note 6(s)) 2200 Other payables (note 6(l)) 2213 Payables on contractors and equipment 2230 Current tax liabilities 2250 Current provisions (notes 6(n) and 10) 2280 Current lease liabilities (note 6(m)) 2300 Other current liabilities Non-Current liabilities: 2541 Long-term borrowings (note 6(k)) 2580 Non-current lease liabilities (note 6(m)) 2570 Deferred tax liabilities 2630 Deferred income (note 6(k)) 2640 Provisions for employee benefits, non-current Total liabilities Equity attributable to owners of parent (note 6(q)): 3100 Ordinary Share 3200 Capital surplus 3310 Legal reserve 3320 Special reserve 3350 Unappropriated retained earnings 3400 Other components of equity Total equity Total liabilities and equity	June 30, 2022		December 31, 2021		June 30, 2021 Amount % - - 27,920 1 40,167 1 142,839 3 42,692 1 15,183 - 512,738 12 1,646 - 5,479 - 788,664 18 - - 1,329 - 103,811 3 - - 19,923 - 125,063 3 913,727 21 794,853 19 1,348,339 32 390,081 9 - - 863,751 20 (56,960) (1) 3,340,064 79 4,253,791 100
				Amount %		Amount %
						- - 33,779 1 41,764 1 128,748 3 118,194 3 - - 418,840 10 1,584 - 5,028 - 747,937 18 - - 571 - 103,811 3 - - 16,945 - 121,327 3 869,264 21 953,824 23 1,348,339 32 426,103 10 29,378 1 611,916 14 (48,929) (1) 3,320,631 79 4,189,895 100

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

SCI PHARMTECH, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and six months ended June 30, 2022 and 2021

(expressed in Thousands of New Taiwan Dollars, except for earnings per common share)

For the three months ended June 30, 2022 2021 Amount % Amount % 4110 Sales revenue (note 6(s)) $ 181,361 100 176,572 100 5110 Cost of sales (notes 6(e), 6(o) and 12) 121,288 67 141,978 80 5900 Gross profit 60,073 33 34,594 20 Operating expenses (notes 6(o) and 12): 6100 Selling expenses 10,072 6 10,953 6 6200 Administrative expenses 24,068 13 11,255 7 6300 Research and development expenses 10,557 6 6,985 4 44,697 25 29,193 17 6900 Net operating income 15,376 8 5,401 3 Non-operating income and expenses: 7190 Other income (notes 6(u) and 10) 159,460 88 8,627 5 7101 Interest income 65 - 232 - 7130 Dividend income 206 - 380 - 7235 Gains (losses) on financial assets at fair value through profit or loss (2,215) (1) 752 - 7510 Interest expense (note 6(m)) (485) - (12) - 7590 Miscellaneous disbursements (359) - (657) - 7610 Gains (losses) on disposals of property, plant and equipment (989) - - - 7630 Foreign exchange gains (losses) 7,830 4 (9,263) (5) 7770 Share of gain (loss) of associates and joint ventures accounted for using equity method, net (note 6(g)) (2,875) (2) (963) (1) 160,638 89 (904) (1) 7900 Profit before tax 176,014 97 4,497 2 7950 Less: Income tax expenses (note 6(p)) 35,672 20 746 - 8200 Profit 140,342 77 3,751 2 8300 Other comprehensive income: 8310 Items that may not be reclassified subsequently to profit or loss: 8316 Unrealized gains (losses) from investments in equity instruments measured at fair value through other comprehensive income (8,042) (4) (10,096) (6) 8349 Less: Income tax related to components of other comprehensive income that will not be reclassified to profit or loss (note 6(p)) - - - - 8300 Other comprehensive income, net (8,042) (4) (10,096) (6) 8500 Total comprehensive income $ 132,300 73 (6,345) (4) Earnings per share (note 6(r)): 9750 Basic earnings per share $ 1.47 0.04 9850 Diluted earnings per share $ 1.47 0.04	For the six months ended June 30, 2022 2021 Amount % Amount % 369,384 100 500,198 100 254,149 69 369,762 74 115,235 31 130,436 26 21,744 6 25,187 5 40,886 11 28,480 6 19,003 5 14,014 3 81,633 22 67,681 14 33,602 9 62,755 12 191,416 52 11,496 3 90 - 459 - 668 - 863 - (4,376) (1) 1,606 - (554) - (21) - (1,101) - (4,989) (1) (1,333) - - - 14,652 4 (14,831) (3) (5,044) (2) (963) - 194,418 53 (6,380) (1) 228,020 62 56,375 11 46,505 13 10,951 2 181,515 49 45,424 9 9,807 3 (27,582) (5) - - - - 9,807 3 (27,582) (5) 191,322 52 17,842 4 1.90 0.48 1.90 0.47	For the six months ended June 30, 2022 2021 Amount % Amount % 369,384 100 500,198 100 254,149 69 369,762 74 115,235 31 130,436 26 21,744 6 25,187 5 40,886 11 28,480 6 19,003 5 14,014 3 81,633 22 67,681 14 33,602 9 62,755 12 191,416 52 11,496 3 90 - 459 - 668 - 863 - (4,376) (1) 1,606 - (554) - (21) - (1,101) - (4,989) (1) (1,333) - - - 14,652 4 (14,831) (3) (5,044) (2) (963) - 194,418 53 (6,380) (1) 228,020 62 56,375 11 46,505 13 10,951 2 181,515 49 45,424 9 9,807 3 (27,582) (5) - - - - 9,807 3 (27,582) (5) 191,322 52 17,842 4 1.90 0.48 1.90 0.47
	2022 Amount % 369,384 100 254,149 69 115,235 31 21,744 6 40,886 11 19,003 5 81,633 22 33,602 9 191,416 52 90 - 668 - (4,376) (1) (554) - (1,101) - (1,333) - 14,652 4 (5,044) (2) 194,418 53 228,020 62 46,505 13 181,515 49 9,807 3 - - 9,807 3 191,322 52 1.90 1.90
		0.47

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards SCI PHARMTECH, INC. AND SUBSIDIARIES

Consolidated Statements of Changes in Equity For the six months ended June 30, 2022 and 2021 (expressed in Thousands of New Taiwan Dollars)

Equity attributable to owners of parent

Ordinary shares	Capital surplus	Retained earnings	Retained earnings	Retained earnings
		Legal reserve	Special reserve Unappropriated retained earnings
$ 794,853 - - - $ 794,853 $ 953,824 - - - - - $ 953,824	1,348,339	390,081 - - - 390,081 426,103 - - - 5,771 - 431,874	- - - - - 29,378 - - - - 19,551 48,929	818,327
	- -			45,424 -
	-			45,424
	1,348,339			863,751
	1,348,339			611,916
	- -			181,515 -
	-			181,515
	- -
	1,348,339

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

SCI PHARMTECH, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the six months ended June 30, 2022 and 2021

(expressed in Thousands of New Taiwan Dollars)

Cash flows from (used in) operating activities:
Profit before tax
Adjustments for:
Adjustments to reconcile profit (loss):
Depreciation expense
Amortization expense
Net loss (gain) on financial assets or liabilities at fair value through profit or loss
Interest expense
Interest income
Dividend income
Share of loss (profit) of associates and joint ventures accounted for using equity method
Losses due to (reversal of) major disasters
Others
Total adjustments to reconcile profit
Changes in operating assets and liabilities:
Decrease (increase) in notes and accounts receivable
Decrease (increase) in inventories
Decrease (increase) in other receivables and other current assets
Increase (decrease) in contract liabilities
Increase (decrease) in notes and accounts payable
Increase (decrease) in other payable
Increase (decrease) in provisions
Increase (decrease) in other current liabilities
Increase (decrease) in provision for employee benefits, non-current
Total changes in operating assets and liabilities
Total adjustments
Cash flow from (used in) operations
Interest received
Dividends received
Interest paid
Income taxes paid
Net cash flows from (used in) operating activities
Cash flows from (used in) investing activities:
Proceeds from disposal of financial assets at fair value through profit or loss
Acquisition of investments accounted for using equity method
Acquisition of property, plant and equipment
Proceeds from disposal of property, plant and equipment
Decrease (increase) in refundable deposits
Increase in prepayments of property, plant and equipment
Net cash flows from (used in) investing activities
Cash flows from (used in) financing activities:
Increase in short-term borrowings
Proceeds from long-term borrowings
Payment of lease liabilities
Net cash flows from (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

See accompanying notes to consolidated financial statements.

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards SCI PHARMTECH, INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

June 30, 2022 and 2021

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

SCI Pharmtech, Inc. (the “Company”) was incorporated in September 18, 1987 as a company limited by shares and registered under the Ministry of Economic Affairs, R.O.C. The major business activities of the Company are the research and development, manufacture and sale of Active Pharmaceutical Ingredients (“ API” ), Intermediates, specialty chemicals. The consolidated financial statements of the Company comprise the Company and its subsidiaries (together referred to as the “Group” and individually as the “ Group entities” ). Please refer to note 4(b) for related information of the Group primarily business activities. Mercuries & Associates, Holding Ltd. is the parent company of the Company.

(2) Approval date and procedures of the consolidated financial statements

These consolidated financial statements were authorized for issuance by the Board of Directors on August 10, 2022.

(3) New standards, amendments and interpretations adopted:

(a) The impact of the International Financial Reporting Standards (“IFRSs”) endorsed by the Financial Supervisory Commission, R.O.C. which have already been adopted.

The Group has initially adopted the following new amendments, which do not have a significant impact on its consolidated financial statements, from January 1, 2022:

●Amendments to IAS 16 “Property, Plant and Equipment—Proceeds before Intended Use”
－
●Amendments to IAS 37 “Onerous Contracts Cost of Fulfilling a Contract”
●Annual Improvements to IFRS Standards 2018–2020
●Amendments to IFRS 3 “Reference to the Conceptual Framework”
(b) The impact of IFRS issued by the FSC but not yet effective

The Group assesses that the adoption of the following new amendments, effective for annual period beginning on January 1, 2023, would not have a significant impact on its consolidated financial statements:

●Amendments to IAS 1 “Disclosure of Accounting Policies”
●Amendments to IAS 8 “Definition of Accounting Estimates”
●Amendments to IAS 12 “ Deferred Tax related to Assets and Liabilities arising from a Single Transaction”

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The following new and amended standards, which may be relevant to the Group, have been issued by the International Accounting Standards Board (IASB), but have yet to be endorsed by the FSC:

Standards or
Interpretations
Amendments to IAS 1
“Classification of Liabilities
as Current or Non-current”

Content of amendment
Effective date per
IASB
The
amendments
aim
to
promote
consistency in applying the requirements
by helping companies determine whether,
in the statement of balance sheet, debt and
other
liabilities
with
an
uncertain
settlement date should be classified as
current (due or potentially due to be settled
within one year) or non-current.
The amendments include clarifying the
classification requirements for debt a
company might settle by converting it into
equity.
January 1, 2023

The Group is evaluating the impact of its initial adoption of the abovementioned standards or interpretations on its consolidated financial position and consolidated financial performance. The results thereof will be disclosed when the Group completes its evaluation.

The Group does not expect the following other new and amended standards, which have yet to be endorsed by the FSC, to have a significant impact on its consolidated financial statements:

●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” and amendments to IFRS 17 “ Insurance Contracts”
●Amendments to IFRS 17 “Initial Application of IFRS 17 and IFRS 9 – Comparative Information “

(4) Summary of significant accounting policies:

(a) Statement of compliance

These consolidated financial statements have been prepared in accordance with the preparation and guidelines of IAS 34 “Interim Financial Reporting” which are endorsed and issued into effect by FSC, and do not include all of the information required by the Regulations and International Financial Reporting Standards, International Accounting Standards, IFRIC Interpretations and SIC Interpretations endorsed and issued into effect by the FSC (hereinafter referred to IFRS endorsed by the FSC) for a complete set of the annual consolidated financial statements.

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Except the following accounting policies mentioned below, the significant accounting policies adopted in the consolidated financial statements are the same as those in the consolidated financial statement for the year ended December 31, 2021. For the related information, please refer to note 4 of the consolidated financial statements for the year ended December 31, 2021.

(b) Basis of Consolidation

List of subsidiaries in the consolidated financial statements.

Name of investor	Name of subsidiary	Principal activity The research and development, manufacture and sale of API	Shareholding	Shareholding
			June 30, 2022 % 100.00	December 31, 2021 June 30, 2021 % 100.00 % 100.00
The Company	Yushan Pharmaceuticals Inc. (Yushan)

(c) Income taxes

The income tax expenses have been prepared and disclosed in accordance with paragraph B12 of International Financial Reporting Standards 34, Interim Reporting.

Income tax expenses for the period are best estimated by multiplying pre-tax income for the interim reporting period by the effective annual tax rate as forecasted by the management. This should be recognized fully as tax expense for the current period.

Temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and their respective tax bases shall be measured based on the tax rates that have been enacted or substantively enacted at the time of the asset or liability is recovered or settled, and be recognized directly in equity or other comprehensive income as tax expense.

(d) Employee benefits

The pension cost in the interim period was calculated and disclosed on a year-to-date basis by using the actuarially determined pension cost rate at the end of the prior fiscal year.

(e) Government grants and government assistance

The Group recognizes an unconditional government grant related to profit or loss as other income when the grant becomes receivable. Other government grants related to assets are initially recognized as deferred income at fair value if there is reasonable assurance that they will be received and the Group will comply with the conditions associated with the grant; they are then recognized in profit or loss as other income on a systematic basis over the useful life of the asset. Grants that compensate the Group for expenses or losses incurred are recognized in profit or loss on a systematic basis in the periods in which the expenses or losses are recognized.

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

The preparation of the consolidated financial statements in conformity with the Regulations and IFRSs (in accordance with IAS 34 “Interim Financial Reporting” and endorsed by the FSC) requires management to make judgments, estimates and assumptions that affect the application of the accounting policies and the reported amount of assets, liabilities, income and expenses. Actual results may differ from these estimates.

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The preparation of the consolidated interim financial statements, estimates and underlying assumptions are reviewed on an ongoing basis which are in conformity with the consolidated financial statements for the year ended December 31, 2021. For the related information, please refer to note 5 of the consolidated financial statements for the year ended December 31, 2021.

(6) Explanation of significant accounts:

Except for the following disclosures, there is no significant difference as compared with those disclosed in the consolidated financial statements for the year ended December 31, 2021. Please refer to note 6 of the 2021 annual consolidated financial statements.

(a) Cash and cash equivalents

Cash on hand Checking accounts and demand deposits Time deposits Bills sold under repurchase agreements	June 30, 2022 $ 502 191,780 17,000 195,000 $ 404,282	December 31, 2021 542 303,689 28,000 - 332,231	June 30, 2021
			540 399,349 28,000 -
			427,889

(i) The Group did not provide cash and cash equivalents as collateral for its loans.

(ii) Please refer to note 6(v) for the interest rate risk and sensitivity analysis of the financial assets and liabilities of the Group.
(b) Financial assets at fair value through profit or loss

Mandatorily measured at fair value through profit or loss: Non-derivative financial assets Beneficiary certificate Stocks listed on domestic markets Total	June 30, 2022 $ 1,036 130,239 $ 131,275	December 31, 2021 144,252 216,149 360,401	June 30, 2021
			371,682 252,693
			624,375

The Group did not provide any aforementioned financial assets as collateral for its loans as of June 30, 2022, December 31, 2021 and June 30, 2021, respectively.

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Financial assets at fair value through other comprehensive income: Emerging stocks and unlisted stocks in domestic markets	June 30, 2022 $ 82,328	December 31, 2021 72,521	June 30, 2021
			58,115

The Group designated the investments shown above as equity securities as at fair value through other comprehensive income because these equity securities represent those investments that the Group intends to hold for long-term for strategic purposes.

In December 2021, the Group participated in the capital increase by cash of Energenesis Biomedical Co., Ltd. (Energenesis) with the amount of $6,375. As of June 30, 2022, the Energenesis' ownership held by the Group was 2.41%.

No strategic investments were disposed for the six months ended June 30, 2022 and 2021, and there were no transfers of any cumulative gain or loss within equity relating to these investments.

Please refer to note 6(v) for market risk of the Group.

As of June 30, 2022, December 31, 2021 and June 30, 2021, the Group did not provide any aforementioned financial assets as collateral for its loans.

(d) Notes and accounts receivable

Notes receivable Accounts receivable Less: Loss allowance	June 30, 2022 $ - 136,756 - $ 136,756	December 31, 2021 - 82,976 - 82,976	June 30, 2021
			- 137,153 -
			137,153

The Group applies the simplified approach to provide for its expected credit losses, i.e. the use of lifetime expected loss provision for all receivables, as well as incorporated forward looking information, including the reasonable prediction of historical credit loss experience and future economic situation (macroeconomic and relevant industry information). The loss allowance provision was determined as follows:

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

	June 30, 2022
Gross carrying amount Rate of loss allowance provision $ 116,672 - 15,170 - - - 437 - 3 - - - - - 4,474 (note) - $ 136,756 December 31, 2021		Loss allowance provision
		- - - - - - - -
		-

	Rate of loss allowance provision - - - - - - - June 30, 2021	Loss allowance provision
		- - - - - - -
		-

	Rate of loss allowance provision - - - - - - 100%	Loss allowance provision
		- - - - - - -
		-

Note: The account receivable has already estimated as provision for short-term sales discounts and allowances. (recorded as other current liabilities)

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

The movement in the allowance for notes and trade receivable was as follows:

Balance at January 1 (Balance at June 30)	For the six months ended June 30,	For the six months ended June 30,
	2022 $ -	2021
		-

As of June 30, 2022, December 31, 2021 and June 30, 2021, the Group did not provide any aforementioned notes and accounts receivable as collaterals for its loans.

(e) Inventories

Raw materials Work in progress Finished goods	June 30, 2022 $ 160,138 70,439 232,012 $ 462,589	December 31, 2021	June 30, 2021
		142,304 22,244 129,634 294,182	139,322 31,352 79,104
			249,778

For the three months and six months ended June 30, 2022 and 2021, inventory cost recognized as cost of sales amounting to $106,776, $98,549, $228,267 and $259,715, respectively, and unallocated production overheads amounting to $12,767, $52,159, $23,311 and $117,158, respectively.

The write-down of inventories to net realizable value were recorded as cost of sales. The details are as following:

The write-downs (reversals)	For the three months ended June 30,		For the six months ended June 30, 2022 2021 2,571 (7,111)
	2022 $ 1,745		2022 2,571

As of June 30, 2022, December 31, 2021 and June 30, 2021, the Group did not provide any inventories as collaterals for its loans.

(f) Other receivables

Insurance claim receivable Others	June 30, 2022 $ 116,397 2,425 $ 118,822	December 31, 2021 265,539 47 265,586	June 30, 2021
			519,057 6,259
			525,316

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(g) Investments accounted for using equity method

The components of investments accounted for using equity method at the reporting date were as follows:

Associates	June 30, 2022 $ 47,403	December 31, 2021 52,447	June 30, 2021
			65,037

(i) In April 2021, the Group acquired 40% shares of Framosa Co., Ltd., for $66,000 in cash, resulting in the Group to have significant influence over Framosa Co., Ltd.
(ii) The Group’s financial information on investments accounted for using equity method that are individually insignificant was as follows:

Attributable to the Group: Profit (loss) Other comprehensive income (loss) Total comprehensive income (loss)	For the three months ended June 30, 2022 2021	For the three months ended June 30, 2022 2021		For the six months ended June 30, 2022 2021	For the six months ended June 30, 2022 2021
	2022			2022
	$ (2,875) - $ (2,875)	(963) - (963)		(5,044) - (5,044)	(963) - (963)

(iii) Pledge to secure

The Group did not provide any investment accounted for using equity method as collaterals for its loans.

(iv) The investments were accounted for using the equity method, and the share of profit or loss and other comprehensive income of those investments were calculated based on the financial statements that have not been reviewed.
(h) Property, plant and equipment

Cost: Balance on January 1, 2022 Additions Transferred (out) in Disposal and derecognitions Balance on June 30, 2022	Land $ 825,680 - 90,215 - $ 915,895	Buildings and construction	Buildings and construction	Machinery and equipment	Machinery and equipment	Office equipment		Others equipment	Prepayment for equipment and construction in progress 633,296 363,727 (274,583) - 722,440	Total 2,733,498 424,631 86,791 (14,176)
			684,472 839 14,502 (1,879) 697,934		543,143 58,309 237,636 (12,014) 827,074	33,939 1,756 19,021 (283) 54,433		12,968 - - -
								12,968		3,230,744

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Buildings and construction	Machinery and equipment	Office equipment	Others equipment
553,521 243 116,489 -	543,884 7,784 5,091 (3,602) 553,157 345,081 18,770 - (10,616) 353,235 420,724 13,292 - (3,602) 430,414 198,062 473,839 123,160 122,743	32,917 305 1,041 (645) 33,618 19,688 1,948 - (283) 21,353 17,963 1,664 - (645) 18,982 14,251 33,080 14,954 14,636	12,968 - - -
670,253			12,968
			5,892 520 - -
			6,412
			4,842 531 - -
			5,373
			7,076
			6,556
			8,126
			7,595

Except for the following, the information on significant transactions of the Group's property, plant and equipment, please refer to note 6(h) to the consolidated financial statements for the year ended December 31, 2021.

(i) In May 2013, the Group purchased a piece of land for the construction of its plant in Taoyuan Luzhu that was auctioned by the court at a price of $211,184. The amount had been paid in full, and the transfer procedures have been completed. The title deed of a certain portion of the land, measuring 2,259 square meters, was registered in the name of Mr. Weichyun Wong due to certain legal requirements. However, both parties agreed that the Group is the actual owner of the land.
(ii) As of June 30, 2022, December 31, 2021 and June 30, 2021, the Group’s prepayments for equipment purchases amounted to $242,657, $262,434 and $201,414, respectively, which were recorded as other non-current assets.

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) As of June 30, 2022, December 31, 2021 and June 30, 2021, part of the property, plant and equipment of the Group had been pledged as collateral. Please refer to note 8 for the details.

(i) Right-of-use assets

The Group leases many assets including company cars and copy machines. Information about leases for which the Group as a lessee is presented below:

Cost:
Balance on January 1, 2022 (Same as balance on June 30, 2022)
Balance on January 1, 2021
Additions
Reductions due to lease modification
Balance on June 30, 2021
Accumulated depreciation:
Balance on January 1, 2022
Depreciation for the period
Balance on June 30, 2022
Balance on January 1, 2021
Depreciation for the period
Reductions due to lease modification
Balance on June 30, 2021
Carrying amount:
Balance on January 1, 2022
Balance on June 30, 2022
Balance on January 1, 2021
Balance on June 30, 2021

Amount
$
4,406
$ 5,657
1,384
(90)
$
6,951
$ 2,272
823
$
3,095
$ 3,089
953
(47)
$
3,995
$
2,134
$
1,311
$
2,568
$
2,956

(j) Short-term borrowings

The details of short-term borrowings were as following:

Unsecured bank loans Secured bank loans Total Unused short-term credit lines Range of interest rates	June 30, 2022	December 31, 2021 - - - 420,000 -	June 30, 2021
	$ 58,000 - $ 58,000 $ 362,000 1.20%~1.26%		- -
			-
			350,000
			-

(i) For the six months ended June 30, 2022 and 2021, the Group had the additional short-term borrowings amounting to $492,000 and $0, respectively, and the repayment each amounted to $434,000 and $0, respectively.

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) For the collateral of the Group's assets for short-term borrowings, please refer to note 8.
(iii) For the information on the Group's exposure to the interest rate risk and liquidity risk, please refer to note 6(v).
(k) Long-term borrowings

Secured bank loans—Maturity year 114.3~116.2 Less: current portion Less: Deferred income Unused credit lines Range of interest rates	June 30, 2022 $ 162,936 - (2,121) $ 160,815 $ 837,064 0.8%~1.05%

(i) For the six months ended June 30, 2022, the Group had the additional long-term borrowings amounting to $162,936 and the repayment amounted to $0.
(ii) The Group applied for a low-interest loan from the National Development Fund, Executive Yuan in 2022 for the construction of plants, equipment and working capital, and obtained a loan of $1,000,000 from Mega International Commercial Bank (non-revolving). As of June 30, 2022, the Group had used the credit amount of $162,936. The loan was recognized by market rates, and the margin interests calculated by the rates between the actual rates and market rates were recognized as deferred income, based on the Government grants.
(l) Other payables

Salaries payable Others	June 30, 2022 $ 76,610 91,268 $ 167,878	December 31, 2021	June 30, 2021
		77,512 51,236 128,748	85,332 57,507
			142,839

(m) Lease liabilities

The carrying amount of lease liabilities was as follows:

Current Non-current	June 30, 2022 $ 1,320 $ 9	December 31, 2021 1,584 571	June 30, 2021
			1,646
			1,329

Please refer to note 6(v) for maturity analysis.

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the three months ended June 30, 2022 2021 The amounts recognized in profit or loss were as follows: Interest on lease liabilities $ 6 10 Expenses relating to short-term leases $ 9,143 12,753 Variable lease payments not included in the measurement of lease liabilities $ 10 21 Expense relating to leases of low-value assets, excluding short-term leases of low-value assets $ 152 384 Lease modification gains (recorded as other income) $ - - The amounts recognized in the statement of cash flows for the Group were as follows: Total cash outflow for leases	For the six months ended June 30, 2022 2021 14 19 17,338 14,786 19 86 297 628 - (1) For the six months ended June 30, 2022 2021 $ 18,494 16,472
	2022 $ 18,494

For the three months ended
June 30,
2022
2021
The amounts recognized in profit
or loss were as follows:
Interest on lease liabilities
$
6
10
Expenses relating to short-term
leases
$
9,143
12,753
Variable lease payments not
included in the measurement
of lease liabilities
$
10
21
Expense relating to leases of
low-value assets,
excluding short-term leases
of low-value assets
$
152
384
Lease modification gains
(recorded as other income)
$
-
-
The amounts recognized in the statement of cash flows for the
Group were as follows:
Total cash outflow for leases

For the six months ended
June 30,
2022
2021
14
19
17,338
14,786
19
86
297
628
-
(1)
For the six months ended
June 30,
2022
2021
$
18,494
16,472

2022
$
18,494

The Group leases company cars and copy machines: The leases typically run for a period of three to six years.

The Group also leases production lines, vehicles and office equipment with contract terms of less than one year. These leases are short-term or leases of low-value items. The Group has elected not to recognize right-of-use assets and lease liabilities for these leases.

(n) Provisions

Except for the following disclosure, there was no significant change for provisions for the six months ended June 30, 2022 and 2021. For the related information, please refer to note 6(m) of the consolidated financial statements for the year ended December 31, 2021.

Balance on January 1, 2022 Provisions made (reversed) during the year Provisions used during the year Balance on June 30, 2022	Environmental protection costs $ 43,946 7,053 (9,672) $ 41,327	Fire disaster indemnity 374,894 (29,803) (103,095) 241,996	Total 418,840 (22,750) (112,767) 283,323

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Balance on January 1, 2021 Provisions made during the year Provisions used during the year Balance on June 30, 2021	Environmental protection costs $ 86,156 1,230 (27,571) $ 59,815	Fire disaster indemnity 509,076 - (56,153) 452,923	Total 595,232 1,230 (83,724) 512,738

Please refer to note 10 for the above fire indemnity.

(o) Employee benefits
(i) Defined benefit plans

Management believes that there was no material volatility of the market, no material reimbursement and settlement or other material one-time events since prior fiscal year. As a result, the pension cost in the accompanying interim period was measured and disclosed according to the actuarial report as of December 31, 2021 and 2020.

The expenses recognized in profit or loss for the Group were as follows:

For the three months ended June 30, 2022 2021 $ 129 170 53 67 $ 182 237	For the six months ended June 30,	For the six months ended June 30,
2022 $ 129 53 $ 182	2022 262 101 363	2021
		342 131
		473

(ii) Defined contribution plans

The Group’s expenses under the pension plan cost to the Bureau of Labor Insurance were as follows:

For the three months ended June 30, 2022 2021 $ 1,232 1,263 56 66 175 168 211 226 $ 1,674 1,723	For the six months ended June 30,	For the six months ended June 30,
2022 $ 1,232 56 175 211 $ 1,674	2022 2,430 113 343 426 3,312	2021
		2,623 132 338 449
		3,542

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(p) Income taxes

(i) The Group’s income tax expense in the interim financial statements is measured and disclosed accordance to paragraph B12 of IAS 34 “Interim Financial Reporting”.
(ii) The Group’s income tax expenses for the three months and six months ended June 30, 2022 and 2021 were calculated as follows:

Current income tax expense	For the three months ended June 30, 2022 2021 $ 35,672 746	For the three months ended June 30, 2022 2021 $ 35,672 746	For the six months ended June 30,	For the six months ended June 30,
	2022		2022 46,505	2021
	$ 35,672			10,951

(iii) For the three months and six months ended June 30, 2022 and 2021, the Group did not recognize income tax expense in equity and other comprehensive income.

(iv) Examination and approval

The ROC tax authorities have examined the Company’ s and Yushan’ s income tax returns through 2020.

(q) Capital and other equity

Except for the following disclosure, there was no significant change for capital and other equity for the periods from January 1 to June 30, 2022 and 2021. For the related information, please refer to note 6(p) of the consolidated financial statements for the year ended December 31, 2021.

(i) Retained Earnings

The Company’s article of incorporation stipulates that Company’s net earnings should first be used to offset the prior years’ deficits, if any, after paying any income taxes. Of the remaining balance, 10% is to be appropriated as legal reserve, and special reserves are supposed to set aside in accordance with the relevant regulations or as required by the government. And then any undistributed retained earnings shall be distributed according to the distribution plan proposed by the Board of Directors and submitted to the stockholders’ meeting for approval.

According to the Company’s dividend policy, the type of dividends should be determined after considering the Company’ s capital and financial structure, operating conditions, operating surplus, industrial characteristics and cycle. The distribution of net earnings should not be lower than 50% of the current profit before tax. Cash dividends to stockholders should not be lower than 10% of the total dividends.

1) Earnings distribution

Based on the resolution of stockholders’ meeting held on June 21, 2022, there were no dividends to be appropriated from the 2021 earnings. Moreover, based on the resolution of stockholders’ meeting held on July 15, 2021, the appropriation of earnings for the year 2020 was approved, and the dividends per share were appropriated as follows:

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

		2021			2020	2020
		Amount		Amount
		per share	Total	per share		Total
		(dollars)	amount	(dollars)		amount
Dividends distributed to
ordinary shareholders:
Cash	$	-	-	0.50		39,743
Stock		-	-	2.00		158,971
Total		$	-			198,714
Other equity (net of tax)
					Unrealized gains
						(losses) from
						financial assets
					measured at fair
						value through
						other
						comprehensive
						income
Balance at January 1, 2022				$		(48,929)
Unrealized gains (losses) from financial assets measured			at fair value	through
other comprehensive income						9,807
Balance at June 30, 2022				$		(39,122)
Balance at January 1, 2021				$		(29,378)
Unrealized gains (losses) from financial assets measured			at fair value	through
other comprehensive income						(27,582)
Balance at June 30, 2021				$		(56,960)

(iv) Other equity (net of tax)

(r) Earnings per share

The Company’s earnings per share was calculated as follows:

For the three months ended June 30, 2022 2021 $ 140,342 3,751 95,382 95,382 $ 1.47 0.04	For the six months ended June 30,	For the six months ended June 30,
2022 $ 140,342 95,382 $ 1.47	2022 181,515 95,382 1.90	2021
		45,424
		95,382
		0.48

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the three months ended June 30, $ 140,342 3,751 95,382 95,382 163 62 95,545 95,444 $ 1.47 0.04	For the six months ended June 30,	For the six months ended June 30,
$ 140,342 95,382 163 95,545 $ 1.47	181,515 95,382 194 95,576 1.90	45,424
		95,382 277
		95,659
		0.47

(s) Revenue from contracts with customers

(i) Disaggregation of revenue

For the three months ended June 30, 2022 2021 $ 65,779 58,033 8,017 9,544 26,050 40,712 35,653 13,868 14,819 4,207 11,800 21,149 - 1,962 5 306 19,238 26,791 $ 181,361 176,572	For the six months ended June 30,	For the six months ended June 30,
2022 $ 65,779 8,017 26,050 35,653 14,819 11,800 - 5 19,238 $ 181,361	2022 136,651 57,765 35,134 35,653 33,168 21,144 - 5 49,864 369,384	2021
		132,849 26,780 94,312 40,095 43,804 32,373 27,369 25,591 77,025
		500,198

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Major products: Active Pharmaceutical Ingredients Intermediates Specialty Chemical	For the three months ended June 30, $ 56,420 90,161 118,416 85,634 6,525 777 $ 181,361 176,572	For the six months ended June 30,	For the six months ended June 30,
	$ 56,420 118,416 6,525 $ 181,361	109,234 247,104 13,046 369,384	294,731 195,954 9,513
			500,198

(ii) Contract balances

Notes and accounts receivable Less: Loss allowance Total Contract liabilities (sales received in advance)	June 30, 2022 $ 136,756 - $ 136,756 $ 32,833	December 31, 2021 82,976 - 82,976 41,764	June 30, 2021
			137,153 -
			137,153
			40,167

Please refer to note 6(d) for the information of accounts receivable and the impairment.

The amount of revenue recognized for the six months ended June 30, 2022 and 2021, that was included in the contract liability balance at the beginning of the period was $10,314 and $60,383, respectively.

The changes of contract liabilities are arising from the difference of time point, which the Group transfers the ownership of goods and which customers do the payment.

(t) Remuneration to employees and directors

In accordance with the Articles of incorporation, the Company should contribute no less than 3% of the profit as employee remuneration and less than 2% as directors’ remuneration when there is profit for the year. However, if the Company has accumulated deficits, the profit should be reserved to offset the deficit. The aforementioned employees’ compensation will be distributed in shares or cash. The recipients may include the employees of the subordinate of the Company who meet certain specific requirements.

For the three months and six months ended June 30, 2022 and 2021, the remunerations to employees amounted to $8,206, $532, $13,317 and $5,548, respectively, and the remunerations to directors amounted to $2,210, $68, $2,930 and $752, respectively. These amounts were calculated using the Company’s net income before tax without the remunerations to employees and directors for each period, multiplied by the proposed percentage which is stated under the Company's proposed Article of Incorporation. These remunerations were expensed under operating costs or expenses for each period. Shares distributed to employees as employees’ remuneration are calculated based on the closing price of the Company’s shares on the day before the approval by the Board of Directors.

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

For the years ended December 31, 2021 and 2020, the remunerations to employees amounted to $6,424 and $44,000, respectively, and the remunerations to directors amounted to $876 and $1,000, respectively. The remunerations above are identical to those of the actual distributions. The information is available on the Market Observation Post System website.

(u) Other Income

Other Income
Provisions reversal of fire indemnity Insurance claim income, net Others	For the three months ended June 30,		For the six months ended June 30,
	2022 $ - 158,275 1,185 $ 159,460	2021	2022 29,803 158,275 3,338 191,416	2021
		- - 8,627		- - 11,496
		8,627		11,496

(v) Financial Instruments

Except for the contention mentioned below, there was no significant change in the fair value of the Group’s financial instruments and degree of exposure to credit risk, liquidity risk and market risk arising from financial instruments. For the related information, please refer to note 6(u) of the consolidated financial statements for the year ended December 31, 2021.

(i) Credit risk
1) Credit risk exposure

The carrying amount of financial assets and contract assets represents the maximum amount exposed to credit risk.

2) Concentration of credit risk

As of June 30, 2022, December 31, 2021 and June 30, 2021, there were six, five and four major customers, respectively, that accounted for 81.68%, 84.15% and 62.50%, respectively, of notes and accounts receivable. Thus, credit risk is significantly centralized. In order to minimize credit risk, the Group periodically evaluates the major clients’ financial positions and the possibility of collecting notes and accounts receivables to ensure the uncollectible amount is recognized appropriately as loss allowance.

3) Receivables and debt securities
a) For credit risk exposure of notes and trade receivables, please refer to note 6(d).
b) Other financial assets at amortized cost include other receivables and time deposits. The counterparties of the time deposits held by the Group are the financial institutions with investment grade credit ratings. Therefore, the credit risk is considered to be low.

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Liquidity Risk

The following table shows the contractual maturities of financial liabilities, including estimated interest payments:

June 30, 2022 Non-derivative financial liabilities: Short-term borrowings Notes and accounts payable Lease liabilities (including current and non-current) Other payables Payables on contractors and equipment Long-term borrowings December 31, 2021 Non-derivative financial liabilities: Notes and accounts payable Lease liabilities (including current and non-current) Other payables Payables on contractors and equipment June 30, 2021 Non-derivative financial liabilities: Notes and accounts payable Lease liabilities (including current and non-current) Other payables Payables on contractors and equipment	Carrying Amount $ 58,000 52,357 1,329 167,878 124,661 160,815 $ 565,040 $ 33,779 2,155 128,748 118,194 $ 282,876 $ 27,920 2,975 142,839 42,692 $ 216,426	Contractual cash flows (58,022) (52,357) (1,338) (167,878) (124,661) (169,617) (573,873) (33,779) (2,178) (128,748) (118,194) (282,899) (27,920) (3,018) (142,839) (42,692) (216,469)	Within a year (58,022) (52,357) (1,329) (167,878) (124,661) (1,712) (405,959) (33,779) (1,605) (128,748) (118,194) (282,326) (27,920) (1,679) (142,839) (42,692) (215,130)	1 ~ 2 years - - (9) - - (1,717) (1,726) - (573) - - (573) - (1,329) - - (1,329)	Over 2 years - - - - - (166,188) (166,188) - - - - - - (10) - - (10)

The Group is not expecting that the cash flows included in the maturity analysis could occur significantly earlier or at significantly different amount.

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Currency risk

1) Exposure to foreign currency risk

The Group’s significant exposure to foreign currency risk was as follow:

Foreign currency: in thousands of dollars

Financial assets Monetary items USD to TWD EUR to TWD Financial liabilities Monetary items USD to TWD		June 30, 2022	TWD 172,722 17 27,265	De Foreign currency	cember 31, 20	21	Foreign currency	June 30, 2021
	Foreign currency	Exchange rate			Exchange rate	TWD		Exchange rate TWD 27.81 424,714 32.95 58,915 27.81 4,895
	$ 5,822 1 919	29.67 30.85 29.67		11,980 859 1,098	27.63 31.12 27.63	331,007 26,732 30,338	15,272 1,788 176

2) Sensitivity analysis

The Group’s exposure to foreign currency risk arises from the translation of the foreign currency exchange gains and losses on cash and cash equivalents, accounts receivable, loans and borrowings, accounts payable, accrued expenses and other payables that are denominated in foreign currency.

The analysis assumes that all other variables remain constant. A strengthening (weakening) 1% of the functional currency against each foreign currency for the six months ended June 30, 2022 and 2021, would have affected the net profit before tax increased or decreased $1,455 and $4,787, respectively. The analysis is performed on the same basis for both periods.

3) Foreign exchange gain and loss on monetary items

The exchange gains and losses of monetary items, including realized and unrealized, are changed into functional currency, which is the Group’s presentation currency. For the three months and six months ended June 30, 2022 and 2021, the exchange gains (losses), including realized and unrealized, are $7,830, $(9,263), $14,652 and $(14,831), respectively.

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iv) Interest rate analysis

For the details of financial assets and liabilities exposed to interest rate risk, please refer to financial risk management.

The details of financial assets and liabilities exposed to interest rate risk were as follows:

Variable rate instruments: Financial assets Financial liabilities	Carrying amount
	June 30, 2022 June 30, 2021 $ 189,021 397,644 220,936 -

The following sensitivity analysis is based on the exposure to the interest rate risk of nonderivative financial instruments on the reporting date. Regarding assets with variable interest rates, the analysis is based on the assumption that the amount of assets outstanding at the reporting date was outstanding throughout the year. The rate of change is expressed as the interest rate increases or decreases by 0.25% when reporting to management internally, which also represents the Group management’s assessment of the reasonably possible interest rate change.

If the interest rate had increased or decreased by 0.25%, the Group's net profit before tax would have increased or decreased by $(40) and $497, respectively, for the six months ended June 30, 2022 and 2021, with all other variable factors remaining constant. This is mainly due to the Group’s bank savings and borrowings with variable interest rates.

(v) Fair value

1) Fair value hierarchy

The fair value of financial assets at fair value through profit or loss and financial assets at fair value through other comprehensive income are measured on a recurring basis. The carrying amount and fair value of the Group’s financial assets and liabilities, including the information on fair value hierarchy were as follows; however, except as described in the following paragraphs, for financial instruments not measured at fair value whose carrying amount is reasonably close to the fair value, and lease liabilities, disclosure of fair value information is not required:

		June 30, 2022	June 30, 2022	June 30, 2022
Book value			Fair Value
		Level 1 131,275 -	Level 2 - -	Level 3 Total - 131,275 82,328 82,328
$ 131,275 82,328
	82,328

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

		June 30, 2022	June 30, 2022	June 30, 2022
	Book value		Fair Value
		Level 1 - - - - - - - - - -	Level 2 - - - - - - - - - -	Level 3 Total - - - - - - - - - - - - - - - - - - - -
404,282 136,756 118,822 2,810 662,670 $ 876,273 $ 58,000 52,357 1,329 167,878 124,661 160,815 $ 565,040	404,282 136,756 118,822 2,810
	662,670

	December 31, 2021	December 31, 2021	December 31, 2021
Book value		Fair Value
	Level 1 360,401 - - - - -	Level 2 - - - - - -	Level 3 Total - 360,401 72,521 72,521 - - - - - - - -
$ 360,401 72,521 332,231 82,976 265,586 3,210 684,003 $ 1,116,925

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

		December 31, 2021	December 31, 2021	December 31, 2021
Book value			Fair Value
		Level 1 Level 2 - - - - - - - - June 30, 2021		Level 3 Total - - - - - - - -
$ 33,779 2,155 128,748 118,194 $ 282,876

	Book value		Fair Value
		Level 1 624,375 - - - - - - - - -	Level 2 Level 3 Total - - 624,375 - 58,115 58,115 - - - - - - - - - - - - - - - - - - - - - - - -
$ 624,375 58,115 427,889 137,153 525,316 6,210 1,096,568 $ 1,779,058 $ 27,920 2,975 142,839 42,692 $ 216,426

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

2) Valuation techniques for financial instruments not measured at fair value

The Group’ s valuation techniques and assumptions used for financial instruments not measured at fair value are as follows:

a) Financial assets and liabilities measured at amortized cost

If there is quoted price generated by transactions, the recent transaction price and quoted price data is used as the basis for fair value measurement. However, if no quoted prices are available, the discounted cash flows are used to estimate fair values.

3) Valuation techniques for financial instruments measured at fair value
a) Non-derivative financial instruments

Financial instruments trade in active markets is based on quoted market prices. The quoted price of a financial instrument obtained from main exchanges and on-therun bonds from Taipei Exchange can be used as a base to determine the fair value of the listed companies’ equity instrument and debt instrument of the quoted price in an active market.

If a quoted price of a financial instrument can be obtained in time and often from exchanges, brokers, underwriters, industrial union, pricing institute, or authorities and such price can reflect those actual trading and frequently happen in the market, then the financial instrument is considered to have a quoted price in an active market. If a financial instrument is not in accord with the definition mentioned above, then it is considered to be without a quoted price in an active market. In general, market with low trading volume or high bid-ask spreads is an indication of a non-active market.

Measurements of fair value of financial instruments without an active market are based on a valuation technique or quoted price from a competitor. Fair value measured by a valuation technique can be extrapolated from similar financial instruments, the discounted cash flow method, or other valuation technique including a model using observable market data at the reporting date.

The measurement of fair value of a non-active market financial instruments held by the Group which do not have quoted market prices are based on the comparable market approach, with the use of key assumptions of price-book ratio multiple or earnings multiple of comparable listed companies as its basic measurement. These assumptions have been adjusted for the effect of discount without the marketability of the equity securities.

4) Transfers between Levels

For the six months ended June 30, 2022 and 2021, there were no transfers from one level to another.

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

5) Reconciliation of Level 3 fair values

January 1, 2022 Total gains and losses recognized: In profit or loss In other comprehensive income June 30, 2022 January 1, 2021 Total gains and losses recognized: In profit or loss In other comprehensive income June 30, 2021	Fair value through other comprehensive income Unquoted equity instruments $ 72,521 - 9,807 $ 82,328 $ 85,697 - (27,582) $ 58,115

For the three months and six months ended June 30, 2022 and 2021, total gains and losses that were included in unrealized gains and losses from financial assets at fair value through other comprehensive income were as follows:

Total gains and losses recognized: In other comprehensive income, and presented in “unrealized gains and losses from financial assets at fair value through other comprehensive income”	For the three months ended June 30, 2022 2021 $ (8,042) (10,096)	For the six months ended June 30, 2022 2021 9,807 (27,582)

6) Quantified information on significant unobservable inputs (Level 3) used in fair value measurement

The Group’s financial instruments that use Level 3 inputs to measure fair value include “financial assets measured at fair value through other comprehensive income – equity investments”. Financial assets at fair value through other comprehensive income – equity investments without an active market have more than one significant unobservable inputs. The significant unobservable inputs of financial assets at fair value through other comprehensive income – equity investments without an active market are individually independent, and there is no correlation between them.

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Quantified information of significant unobservable inputs was as follows:

Item Fair value through other comprehensive income– equity investments without an active market 〃	Valuation technique Price-Book ratio method 〃	Significant unobservable inputs Inter-relationship between significant unobservable inputs and fair value measurement ‧ The multiplier of Price- Book Ratio (As of June 30, 2022, December 31, 2021 and June 30, 2021 were 1.54~3.08, 1.70~2.72 and 1.61~2.96 , respectively) The higher the fair value is, the higher the fair value will be. ‧ Lack-of-Marketability discount rate (As of June 30, 2022, December 31, 2021 and June 30, 2021 were 23%~28%, 23%~50% and 23%~50%, respectively) The higher the Lack-of- Marketability discount rate is, the lower the fair value will be.

7) Fair value measurements in Level 3 – sensitivity analysis of reasonably possible alternative assumptions

The Group’ s measurement on the fair value of financial instruments is deemed reasonable despite different valuation models or assumptions that may lead to various results. For fair value measurements in Level 3, changing one or more of the assumptions would have the following effects on profit or loss and other comprehensive income:

June 30, 2022 Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income December 31, 2021 Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income	Inputs Price-Book ratio multiples Lack-of Marketability discount rate Price-Book ratio multiples Lack-of Marketability discount rate	Move up or Other comprehensive income downs Favorable Unfavorable 5% $ 4,114 4,130 5% $ 1,255 1,268 5% $ 3,698 3,600 5% $ 2,345 2,247	Other comprehensive income	Other comprehensive income
				Unfavorable
				4,130
				1,268
				3,600
				2,247

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

June 30, 2021 Financial assets at fair value through other comprehensive income Financial assets at fair value through other comprehensive income	Inputs Price-Book ratio multiples Lack-of Marketability discount rate	Move up or Other comprehensive income downs Favorable Unfavorable 5% $ 2,479 2,506 5% $ 1,877 1,909	Other comprehensive income	Other comprehensive income
				Unfavorable
				2,506
				1,909

The favorable and unfavorable effects represent the changes in fair value, and fair value is based on a variety of unobservable inputs calculated using a valuation technique. The analysis above only reflects the effects of changes in a single input, and it does not include the interrelationships with another input.

(w) Financial risk management

There were no significant changes in the Group’ s financial risk management and policies as disclosed in note 6(v) of the consolidated financial statements for the year ended December 31, 2021.

(x) Capital management

Management believes that the objectives, policies and processes of capital management of the Group has been applied consistently with those described in the consolidated financial statements for the year ended December 31, 2021. Also, management believes that there were no significant changes in the Group’s capital management information as disclosed for the year ended December 31, 2021. Please refer to note 6(w) of the consolidated financial statements for the year ended December 31, 2021.

(y) Investing and financing activities not affecting current cash flow

The Group’s investing and financing activities which did not affect the current cash flow for the six months ended June 30, 2022 and 2021, were as follows:

(i) For the acquisition of right-of-use assets by lease for the six months ended June 30, 2022 and 2021, please refer to note 6(i).
(ii) Reconciliation of liabilities arising from financing activities for the six months ended June 30, 2022 and 2021, were as follows:

Non-cash changes

Short-term borrowings Long-term borrowings Lease liabilities	January 1, 2022 $ - - 2,155 $ 2,155	Cash flows 58,000 162,936 (826) 220,110	Changes in lease payments - - - -	Others - (2,121) - (2,121)	June 30, 2022
					58,000 160,815 1,329
					220,144

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

Lease liabilities	January 1, 2021 $ 2,588	Cash flows (953)	Non-cash	changes Others -	June 30, 2021
			Changes in lease payments 1,340
					2,975

(7) Related-party transactions:

(a) Names and relationship with related parties:

Name of related party Relationship with the Group Weichyun Wong The chairman of the Company

(b) Significant transaction with related parties:

(i) Others

The title deed of a certain portion of the land was registered in the name of Mr. Weichyun Wong due to certain legal requirements for the six months ended June 30, 2022 and 2021. Please refer to note 6(h).

Salary and short-term employee benefits	For the three months ended June 30, 2022 2021 $ 5,859 2,921	For the six months ended June 30,	For the six months ended June 30,
	2022 $ 5,859	2022 10,275	2021
			7,989

(8) Pledged assets:

The carrying values of pledged assets were as follows:

Assets Land Building	Subject Pledged as collaterals 〃	June 30, 2022 $ 42,736 3,202 $ 45,938	December 31, 2021 42,736 3,523 46,259	June 30, 2021
				42,736 3,845
				46,581

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(9) Commitments and contingencies:

(a) As of June 30, 2022, December 31, 2021 and June 30, 2021, the unused balance of the Group’s outstanding standby letters of credit amounted to $5,789, $39,826 and $33,031, respectively.
(b) The significant outstanding purchase commitments for property, plant and equipment were as follows:

follows:
Acquisitions of property, plant and equipment	June 30, 2022 $ 594,659	December 31, 2021 887,002	June 30, 2021
			247,749

(10) Losses Due to Major Disasters:

A major fire occurred on December 20, 2020, and caused damage to some of the Company's buildings, equipment, construction in progress and inventories, and spread to several nearby plants, resulting in damage to their property and interruption of their operations. In 2020, the Company derecognized damaged assets, including buildings, equipment and construction in progress and inventories and estimated the amount of fire indemnity for the nearby companies.

The Company is currently in the process of negotiation with the above damaged companies for fire indemnity payments. As of June 30, 2022, December 31, 2021 and June 30, 2021, the outstanding provisions for fire indemnity was $241,996, $374,894 and $452,923, respectively, which was recorded under provisions. Please refer to note 6(n) for the details.

The Company has already entered into related property insurance contracts. As of June 30, 2022, December 31, 2021 and June 30, 2021, the Company recognized the claim receivables for $116,397, $265,539 and $519,057, respectively, which were recorded under other receivables. As of date of the report, the above receivables had been received.

For the six months ended June 30, 2022 and 2021, the Company received net incremental compensation amounting to $158,275 and $0, respectively, which was recorded under other income.

(11) Subsequent Events: None.

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(12) Other:

(a) The followings are the summary statement of current period employee benefits, depreciation and amortization expenses by function:

By function By item	For the three months ended June 30, 2022	For the three months ended June 30, 2022	For the three months ended June 30, 2022	For the three months ended June 30, 2021	For the three months ended June 30, 2021	For the three months ended June 30, 2021
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits Salary Labor and health insurance Pension Remuneration of directors Others Depreciation Amortization	31,889 2,738 1,361 - 785 12,278 1,034	22,290 962 495 2,210 1,240 6,524 1,006	54,179 3,700 1,856 2,210 2,025 18,802 2,040	25,010 2,811 1,433 - 797 9,532 1,010	10,506 1,027 527 68 1,084 4,283 1,005	35,516 3,838 1,960 68 1,881 13,815 2,015

By function By item	For the six months ended June 30, 2022			For the six months ended June 30, 2021
	Cost of sales	Operating expenses	Total	Cost of sales	Operating expenses	Total
Employee benefits Salary Labor and health insurance Pension Remuneration of directors Others Depreciation Amortization	61,269 5,926 2,692 - 1,615 21,578 2,069	38,960 2,191 983 2,930 2,439 12,336 2,011	100,229 8,117 3,675 2,930 4,054 33,914 4,080	52,706 6,547 2,965 - 1,580 18,638 1,441	27,303 2,322 1,050 752 2,511 8,256 2,011	80,009 8,869 4,015 752 4,091 26,894 3,452

(b) Seasonality of operations

The Group’s operations were not affected by seasonality or cyclicality factors.

(13) Other disclosures:

(a) Information on significant transactions:

The following is the information on significant transactions required by the “Regulations Governing the Preparation of Financial Reports by Securities Issuers” for the Group for the six months ended June 30, 2022:

(i) Loans to other parties: None.
(ii) Guarantees and endorsements for other parties: None.

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Securities held as of June 30, 2022 (excluding investment in subsidiaries, associates and joint ventures):

ventures):	ventures):	ventures):	ventures):
				Unit: thousand dollars
Name of holder	Category and name of security	Relationship with company	Account title	Ending balance				Note
				Shares/Units (thousands)	Carrying value	Percentage of ownership (%)	Fair value
The Company 〃〃〃〃〃〃〃	Beneficiary Certificate (UPAMC James Bond Money Market Fund) Stock (Fubon S&P Preferred Shares A) Stock (Cathay Financial Holding Co., Ltd. Preferred Stock A) Stock (Cathay Financial Holding Co., Ltd. Preferred Stock B) Stock (CTBC Financial Holding Co., Ltd. Preferred Shares B) Stock (Shin Kong Financial Holding Co., Ltd. Preferred Shares A) Stock (Energenesis Biomedical Co., Ltd.) Stock (Sunny Pharmtech Inc.)	- - - - - - - -	Current Financial asset at fair value through profit or loss 〃〃〃〃〃 Financial assets at fair value through other comprehensive income 〃	61 312 790 11 570 599 1,603 4,497	1,036 19,656 49,375 690 36,138 24,380 42,795 39,533	- - - - - - 2.41 % 3.25 %	1,036 19,656 49,375 690 36,138 24,380 42,795 39,533	- - - - - - - -

(iv) Individual securities acquired or disposed of with accumulated amount exceeding the lower of $300 million or 20% of the capital stock: None.

(v) Acquisition of individual real estate with amount exceeding the lower of $300 million or 20% of the capital stock:

Name of company	Name of property	Transaction date	Transaction amount	Status of payment	Counter- party	Relationship with the Company	If the counter-party is a related party, disclose the previous transfer information	If the counter-party is a related party, disclose the previous transfer information	If the counter-party is a related party, disclose the previous transfer information	If the counter-party is a related party, disclose the previous transfer information	References for determining price	Purpose of acquisition and current condition	Others
							Owner	Relationship with the Company	Date of transfer	Amount
The Company	Buildings	2021.10.19	$ 630,000	$ 252,000	ECO Technical Services Co., Ltd.	None	Not applicable	Not applicable	Not applicable	-	Price negotiation	to expand production

(vi) Disposal of individual real estate with amount exceeding the lower of $300 million or 20% of the capital stock: None.
(vii) Related-party transactions for purchases and sales with amounts exceeding the lower of $100 million or 20% of the capital stock: None.
(viii) Receivables from related parties with amounts exceeding the lower of $100 million or 20% of the capital stock: None.
(ix) Trading in derivative instruments: None.
(x) Business relationships and significant intercompany transactions: None.

(Continued)

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Information on investees:

The following is the information on investees for the six months ended June 30, 2022 (excluding information on investees in Mainland China):

				Unit: thousand dollars/ thousand shares	Unit: thousand dollars/ thousand shares	Unit: thousand dollars/ thousand shares	Unit: thousand dollars/ thousand shares	Unit: thousand dollars/ thousand shares	Unit: thousand dollars/ thousand shares	Unit: thousand dollars/ thousand shares	Unit: thousand dollars/ thousand shares
Name of investor	Name of investee	Location	Main businesses and products	Original investment amount		Ending balance			Net income (losses) of investee	Share of profits/losses of investee	Note
				June 30, 2022	December 31, 2021	Shares (thousands)	Percentage of ownership	Carrying value
The Company The Company	Yushan Pharmaceuticals Inc. Framosa Co., Ltd.	R.O.C. R.O.C.	The research and development, manufacture and sale of API Circular economy by purifying and utilizing used solvents	351,761 66,000	351,761 66,000	35,190 6,600	% 100 % 40	348,328 47,403	(271) (12,609)	(271) (5,044)	Note 1

Note 1：The transactions had been eliminated in the consolidated financial statements.

(c) Information on investment in mainland China: None.
(d) Major shareholders:

Unit: shares

		Unit: shares
Shareholding Shareholders' Name	Shares	Percentage
Mercuries & Associates Holding Ltd.	30,283,358	% 31.74
Zhan Liwei	6,060,000	% 6.35

(14) Segment information:

The Group only uses one segment to assess its performance and allocate resources. Hence, there is no need to disclose the information.

AI assistant

SCI — Interim / Quarterly Report 2022

52383_rns_2022-11-11_893032be-9eb9-4647-87c6-d427d91f88a4.pdf

SCI PHARMTECH, INC. AND SUBSIDIARIES

Consolidated Financial Statements

Table of contents

KPMG

Independent Auditors’ Review Report

Introduction

Scope of Review

Basis for Qualified Conclusion

Qualified Conclusion

KPMG

Notes to Readers

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards as of June 30, 2022 and 2021

SCI PHARMTECH, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

SCI PHARMTECH, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Income

For the three months and six months ended June 30, 2022 and 2021

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards SCI PHARMTECH, INC. AND SUBSIDIARIES

Equity attributable to owners of parent

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards

SCI PHARMTECH, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the six months ended June 30, 2022 and 2021

(English Translation of Consolidated Financial Statements Originally Issued in Chinese) Reviewed only, not audited in accordance with generally accepted auditing standards SCI PHARMTECH, INC. AND SUBSIDIARIES

Notes to the Consolidated Financial Statements

June 30, 2022 and 2021

(Expressed in Thousands of New Taiwan Dollars, Unless Otherwise Specified)

(1) Company history

(2) Approval date and procedures of the consolidated financial statements

(3) New standards, amendments and interpretations adopted:

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(4) Summary of significant accounting policies:

(a) Statement of compliance

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(b) Basis of Consolidation

(c) Income taxes

(d) Employee benefits

(e) Government grants and government assistance

(5) Significant accounting assumptions and judgments, and major sources of estimation uncertainty:

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(6) Explanation of significant accounts:

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(e) Inventories

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(g) Investments accounted for using equity method

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(i) Right-of-use assets

(j) Short-term borrowings

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(n) Provisions

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(p) Income taxes

(iv) Examination and approval

(q) Capital and other equity

(i) Retained Earnings

1) Earnings distribution

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(t) Remuneration to employees and directors

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(u) Other Income

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(ii) Liquidity Risk

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iii) Currency risk

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

(iv) Interest rate analysis

(v) Fair value

1) Fair value hierarchy

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

SCI PHARMTECH, INC. AND SUBSIDIARIES Notes to the Consolidated Financial Statements

SCI Interim / Quarterly Report 2022