SFC — Audit Report / Information 2022

Nov 11, 2022

Standard Foods Corporation

Financial Statements for the Years Ended December 31, 2022 and 2021 and Independent Auditors’ Report

INDEPENDENT AUDITORS’ REPORT

The Board of Directors and Shareholders Standard Foods Corporation

Opinion

We have audited the accompanying financial statements of Standard Foods Corporation (the “Company”), which comprise the balance sheets as of December 31, 2022 and 2021, and the statements of comprehensive income, changes in equity and cash flows for the years then ended, and notes to the financial statements, including a summary of significant accounting policies (collectively referred to as the “financial statements”).

In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2022 and 2021, and its financial performance and its 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 the Standards on Auditing of the Republic of China. Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the 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 financial statements for the year ended December 31, 2022. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

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The key audit matter identified in the Company’s financial statements for the year ended December 31, 2022 is stated as follows:

Estimate of Return Liability

The Company mainly manufactures and sells nutrient-rich food, edible oil products, dairy products and beverages. Taking into account the current market conditions and the historical experience of its sales in the past, the Company estimates the probable amount of each product’s return liability. Refer to Notes 5 and 19 to the financial statements for detailed information related to the Company’s return liability. Because the assessment of return liability involves management’s critical accounting estimates and judgments, we considered the assessment of return liability to be a key audit matter.

The key audit procedures that we performed in respect of the estimate of return liability included the following:

1. We obtained an understanding and tested the design and operating effectiveness of the key controls over the estimates of the return liability.

2. We selected samples from the sales return transactions and inspected the correctness of the sales returns in the current year.

3. We obtained the relevant reports of estimates of sales return liability, and we recalculated and reviewed that the assessment results were adequate.

Responsibilities of Management and Those Charged with Governance for the Financial Statements

Management is responsible for the preparation and fair presentation of the 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 financial statements that are free from material misstatement, whether due to fraud or error.

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

Those charged with governance, including the audit committee, are responsible for overseeing the Company’s financial reporting process.

Auditors’ Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditors’ report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Standards on Auditing of Republic of China will always detect a material misstatement when it exists. Misstatements 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 users taken on the basis of these financial statements.

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As part of an audit in accordance with the Standard on Auditing of the Republic of China, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

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

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

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

4. Conclude on the appropriateness of 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 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 auditors’ report. However, future events or conditions may cause the Company to cease to continue as a going concern.

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

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

We communicate 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 identify during our audit.

We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate 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 determine those matters that were of most significance in the audit of the financial statements for the year ended December 31, 2022 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation 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 audits resulting in this independent auditors’ report are Tza-Li Gung and Han-Ni Fang.

Deloitte & Touche Taipei, Taiwan Republic of China

March 23, 2023

Notice to Readers

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

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

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STANDARD FOODS CORPORATION

BALANCE SHEETS DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

ASSETS CURRENT ASSETS Cash and cash equivalents (Note 6) Financial assets at fair value through profit or loss - current (Note 7) Financial assets at fair value through other comprehensive income - current (Note 8) Financial assets at amortized cost - current (Note 9) Notes receivable (Notes 10 and 22) Trade receivables from unrelated parties (Notes 10 and 22) Trade receivables from related parties (Notes 22 and 28) Other receivables (Note 10) Other receivables from related parties (Note 28) Inventories (Note 11) Prepayments (Note 12) Other current assets (Notes 17 and 19) Total current assets NON-CURRENT ASSETS Financial assets at fair value through profit or loss - non-current (Note 7) Financial assets at fair value through other comprehensive income - non-current (Note 8) Investments accounted for using the equity method (Note 13) Property, plant and equipment (Note 14) Right-of-use assets (Note 15) Other intangible assets (Note 16) Deferred tax assets (Note 24) Other non-current assets (Note 17) Total non-current assets TOTAL LIABILITIES AND EQUITY CURRENT LIABILITIES Contract liabilities - current (Note 22) Notes payable (Note 18) Trade payables (Note 18) Trade payables to related parties (Note 28) Other payables (Note 19) Current tax liabilities (Note 24) Lease liabilities - current (Note 15) Other current liabilities (Notes 5 and 19) Total current liabilities NON-CURRENT LIABILITIES Deferred tax liabilities (Note 24) Lease liabilities - non-current (Note 15) Net defined benefit liabilities (Note 20) Other non-current liabilities (Note 19) Total non-current liabilities Total liabilities EQUITY (Note 21) Ordinary shares Capital surplus Retained earnings Legal reserve Special reserve Unappropriated earnings Total retained earnings Other equity Treasury shares Total equity TOTAL		2022 Amount % $ 345,640 2 984,847 5 21,627 - 758,484 4 1,286 - 1,937,230 10 145,838 1 14,315 - 905,282 4 2,691,589 13 253,140 1 58,263 - 8,117,541 40 2,059 - 159,057 1 10,089,429 50 1,381,826 7 117,155 1 26,516 - 312,327 1 23,108 - 12,111,477 60 $ 20,229,018 100 $ 747 - 20,176 - 797,921 4 19,633 - 1,261,674 6 174,665 1 33,017 - 65,393 - 2,373,226 11 135,047 1 85,632 - 123,623 1 150 - 344,452 2 2,717,678 13 9,150,897 45 156,981 1 3,852,023 19 577,494 3 4,045,655 20 8,475,172 42 (250,528) (1) (21,182) - 17,511,340 87 $ 20,229,018 100		2021
				Amount % $ 607,824 3 973,217 4 21,185 - 1,309,153 6 175 - 1,828,686 9 127,773 1 12,673 - 906,220 4 1,690,929 8 354,000 2 34,931 - 7,866,766 37 2,244 - 112,265 1 11,189,831 53 1,341,650 6 140,460 1 21,101 - 346,687 2 28,319 - 13,182,557 63 $ 21,049,323 100 $ 17,285 - 20,201 - 732,876 4 19,472 - 1,260,824 6 282,639 1 31,963 - 43,418 - 2,408,678 11 319,821 2 108,617 - 174,867 1 150 - 603,455 3 3,012,133 14 9,150,897 43 144,066 1 3,606,189 17 577,494 3 4,769,802 23 8,953,485 43 (190,076) (1) (21,182) - 18,037,190 86 $ 21,049,323 100

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

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STANDARD FOODS CORPORATION

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OPERATING REVENUE Sales (Notes 22 and 28) OPERATING COSTS Cost of goods sold (Notes 11, 23 and 28) GROSS PROFIT OPERATING EXPENSES (Note 23) Selling and marketing expenses General and administrative expenses Research and development expenses Expected credit loss (gain) Total operating expenses OPERATING INCOME NON-OPERATING INCOME AND EXPENSES Interest income (Notes 23 and 28) Other income (Notes 23 and 28) Other gains (Note 23) Finance costs (Note 23) Share of the (loss) profit of subsidiaries Total non-operating income and expenses PROFIT BEFORE INCOME TAX INCOME TAX EXPENSE (Note 24) NET PROFIT FOR THE YEAR		2022 Amount % $ 12,168,430 100 8,094,042 67 4,074,388 33 1,598,085 13 383,776 3 82,111 1 1,858 - 2,065,830 17 2,008,558 16 27,497 - 13,742 - (29,591) - (1,375) - (548,827) (4) (538,554) (4) 1,470,004 12 255,906 2 1,214,098 10		2021
				Amount % $ 12,496,867 100 7,945,262 64 4,551,605 36 1,387,798 11 418,982 3 85,952 - 419 - 1,893,151 14 2,658,454 22 19,427 - 10,503 - (12,388) - (843) - 309,413 2 326,112 2 2,984,566 24 527,938 4 2,456,628 20 (Continued)

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STANDARD FOODS CORPORATION

STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Except Earnings Per Share)

OTHER COMPREHENSIVE INCOME (LOSS) Items that will not be reclassified subsequently to profit or loss: Remeasurement of defined benefit plans (Note 20) Unrealized loss on investments in equity instruments at fair value through other comprehensive income Share of the other comprehensive income of subsidiaries accounted for using the equity method Income tax relating to items that will not be reclassified subsequently to profit or loss (Note 24) Total items that will not be reclassified subsequently to profit or loss Items that may be reclassified subsequently to profit or loss: Exchange differences on translation of the financial statements of foreign operations Income tax relating to items that may be reclassified subsequently to profit or loss (Note 24) Total items that may be reclassified subsequently to profit or loss Other comprehensive income (loss) for the year, net of income (loss) tax TOTAL COMPREHENSIVE INCOME FOR THE YEAR EARNINGS PER SHARE (Note 25) Basic Diluted		2022 Amount % $ 48,364 - 47,234 - (223,633) (1) (9,838) - (137,873) (1) 154,600 1 (30,920) - 123,680 1 (14,193) - $ 1,199,905 10 $ 1.34 $ 1.34		2021
				Amount % $ (1,293) - 35,438 - 174,817 2 (1,187) - 207,775 2 (50,814) (1) 10,163 - (40,651) (1) 167,124 1 $ 2,623,752 21 $ 2.70 $ 2.70

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

(Concluded)

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STANDARD FOODS CORPORATION

STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

Ordinary Shares Capital Surplus BALANCE AT JANUARY 1, 2021 $ 9,150,897 $ 127,392 Appropriation of 2020 earnings Legal reserve - - Cash dividends to shareholders - - Adjustment of capital surplus for the Company's cash dividends received by subsidiaries - 16,674 Net profit for the year ended December 31, 2021 - - Other comprehensive income (loss) for the year ended December 31, 2021, net of income tax - - Total comprehensive income (loss) for the year ended December 31, 2021 - - BALANCE AT DECEMBER 31, 2021 9,150,897 144,066 Appropriation of 2021 earnings Legal reserve - - Cash dividends to shareholders - - Share dividends to shareholders - - Adjustment of capital surplus for the Company's cash dividends received by subsidiaries - 12,672 Adjustment of capital surplus for the change in ownership interests in existing subsidiaries - 243 Net profit for the year ended December 31, 2022 - - Other comprehensive income (loss) for the year ended December 31, 2022, net of income tax - - Total comprehensive income for the year ended December 31, 2022 - - BALANCE AT DECEMBER 31, 2022 $ 9,150,897 $ 156,981	Retained Earnings	Total $ 8,782,873 - (2,287,724) - 2,456,628 1,708 2,458,336 8,953,485 - (1,738,670) - - - 1,214,098 46,259 1,260,357 $ 8,475,172	Other Equity	Total Treasury Shares $ (355,492) $ (21,182) - - - - - - - - 165,416 - 165,416 - (190,076) (21,182) - - - - - - - - - - - - (60,452) - (60,452) - $ (250,528) $ (21,182)	Total Equity $ 17,684,488 - (2,287,724) 16,674 2,456,628 167,124 2,623,752 18,037,190 - (1,738,670) - 12,672 243 1,214,098 (14,193) 1,199,905 $ 17,511,340
			Exchange Differences on Translation of the Financial Statements of Unrealized Gain (Loss) on Financial Assets at Fair Value Through Other Foreign Operations Comprehensive Income $ (572,206) $ 216,714 - - - - - - - - (40,651) 206,067 (40,651) 206,067 (612,857) 422,781 - - - - - - - - - - - - 123,680 (184,132) 123,680 (184,132) $ (489,177) $ 238,649
	Legal Reserve Special Reserve Unappropriated Earnings $ 3,287,022 $ 577,494 $ 4,918,357 319,167 - (319,167) - - (2,287,724) - - - - - 2,456,628 - - 1,708 - - 2,458,336 3,606,189 577,494 4,769,802 245,834 - (245,834) - - (1,738,670) - - - - - - - - - - - 1,214,098 - - 46,259 - - 1,260,357 $ 3,852,023 $ 577,494 $ 4,045,655

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

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STANDARD FOODS CORPORATION

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM OPERATING ACTIVITIES Income before income tax Adjustments for: Depreciation expenses Amortization expenses Expected credit loss recognized on trade receivables Net loss on fair value changes of financial assets and liabilities designated as at fair value through profit or loss Finance costs Interest income Dividend income Share of the loss (profit) of subsidiaries Net loss on disposal of property, plant and equipment Net loss on disposal of investment Others Changes in operating assets and liabilities Financial assets mandatorily classified as at fair value through profit or loss Notes receivable Trade receivables Trade receivables from related parties Other receivables Other receivables from related parties Inventories Prepayments Other current assets Contract liabilities Notes payable Trade payables Trade payables to related parties Other payables Other current liabilities Net defined benefit liabilities Cash generated from operations Interest received Interest paid Income tax paid Net cash generated from operating activities	2022 $ 1,470,004 212,027 20,985 1,858 69,486 1,375 (27,497) (4,434) 548,827 1,676 - - (80,930) (1,111) (110,402) (18,065) (1,024) 938 (1,000,660) 100,860 (23,332) (16,538) (25) 65,045 161 850 21,975 (2,880) 1,229,169 26,879 (1,375) (555,052) 699,621	2021 $ 2,984,566 226,629 15,378 419 35,432 843 (19,427) (1,471) (309,413) 15,247 259 (922) 109,814 (170) 134,622 8,812 21,244 41,325 143,401 (186,294) (7,553) (4,155) 19,912 (95,069) (1,054) 150,235 35,495 (14,819) 3,303,286 19,930 (843) (589,112) 2,733,261 (Continued)

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STANDARD FOODS CORPORATION

STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

CASH FLOWS FROM INVESTING ACTIVITIES Purchase of financial assets at amortized cost Proceeds from sale of financial assets at amortized cost Net cash inflow on disposal of subsidiary Payments for property, plant and equipment Proceeds from disposal of property, plant and equipment Payments for intangible assets Increase in other financial assets Decrease in other financial assets Increase in other non-current assets Dividends received from subsidiaries Other dividends received Net cash generated from (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Repayment of the principal portion of lease liabilities Dividends paid to owners of the Company Acquisition of interest in subsidiaries Net cash used in financing activities NET (DECREASE) INCREASE 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	2022 $ (2,061,228) 2,611,897 - (220,053) 532 (20,156) - 6,202 (7,235) 498,699 4,434 813,092 (32,985) (1,738,670) (3,242) (1,774,897) (262,184) 607,824 $ 345,640	2021 $ (2,307,737) 2,091,545 8,584 (204,677) 2,649 (16,979) (7,474) - (6,757) 419,348 1,471 (20,027) (23,433) (2,287,724) - (2,311,157) 402,077 205,747 $ 607,824

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

(Concluded)

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NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

STANDARD FOODS CORPORATION

1. GENERAL INFORMATION

Standard Foods Corporation (the “Company”) was incorporated on June 6, 1986. The Company mainly manufactures and sells nutritious foods, edible oils, dairy products and beverages.

The Company’s shares have been listed on the Taiwan Stock Exchange since April 1994.

The financial statements are presented in the Company’s functional currency, the New Taiwan dollar.

2. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved by the Company’s board of directors on March 15, 2023.

3. APPLICATION OF NEW, AMENDED AND REVISED STANDARDS AND INTERPRETATIONS

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

The initial application of the IFRSs endorsed and issued into effect by the FSC did not have material impact on the Group’s accounting policies.

• b. The IFRSs endorsed by the FSC for application starting from 2023

New IFRSs Amendments to IAS 1 “Disclosure of Accounting Policies” Amendment to IAS 8 “Definition of Accounting Estimate” Amendments to IAS 12 “Deferred Tax Related to Assets and Liabilities Arising from a Single Transaction”	Effective Date Announced by IASB
	January 1, 2023 (Note 1) January 1, 2023 (Note 2) January 1, 2023 (Note 3)

• Note 1: This amendment applies to the annual reporting period beginning after January 1, 2023.

• Note 2: This amendment applies to changes in accounting estimates and changes in accounting policies that occur during the annual reporting period beginning after January 1, 2023.

• Note 3: Except for the recognition of deferred income tax on temporary differences between lease and decommissioning obligations on January 1, 2022, this amendment is applicable to transactions that occur after January 1, 2022.

Except for the above impact, as of the date the financial statements were authorized for issue, the Company has assessed that the application of other standards and interpretations will not have a material impact on the Company’s financial position and financial performance.

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• c. New IFRSs in issue but not yet endorsed and issued into effect by the FSC

Effective Date New IFRSs Announced by IASB (Note 1) Amendments to IFRS 10 and IAS 28 “Sale or Contribution of Assets To be determined by IASB between an Investor and its Associate or Joint Venture” Amendments to IFRS 16 “Lease Liability in a Sale and Leaseback” January 1, 2024 (Note 2) IFRS 17 “Insurance Contracts” January 1, 2023 Amendments to IFRS 17 January 1, 2023 Amendments to IFRS 17 “Initial Application of IFRS 9 and IFRS 17 - January 1, 2023 Comparative Information” Amendments to IAS 1 “Classification of Liabilities as Current or January 1, 2024 Non-current” Amendments to IAS 1 “Non-current Liabilities with Covenants” January 1, 2024

• Note 1: Unless stated otherwise, the above New IFRSs are effective for annual reporting periods beginning on or after their respective effective dates.

• Note 2: Seller and also Lessee shall retroactively apply the amendments to IFRS 16 to the sale and leaseback transactions executed after the date of the first-time application of IFRS 16.

Except for the above impact, as of the date the 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

• a. Statement of compliance

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

• b. Basis of preparation

The financial statements have been prepared on the historical cost basis except for financial instruments which are measured at fair values and net defined benefit liabilities that are determined by deducting the fair value of plan assets from the present value of the defined benefit obligation.

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 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 the 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 the asset or liability.

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When preparing these parent company only financial statements, the Company adopts the equity method to account for its investment in subsidiaries. In order for the amounts of the net profit for the year, other comprehensive income for the year and total equity in these parent company only financial statements to be the same as the amounts attributable to the owners of the Company in its consolidated financial statements, adjustments arising from the differences in accounting treatment between parent company only basis and consolidated basis were made to the investments accounted for by the equity method, the share of profit or loss of subsidiaries, the share of other comprehensive income of subsidiaries and the related equity items, as appropriate, in these parent company only financial statements.

• c. 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 twelve 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 twelve months after the reporting period.

Current liabilities include:

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

• 2) Liabilities due to be settled within twelve 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 financial statements are authorized for issue; and

• 3) Liabilities for which the Company does not have an unconditional right to defer settlement for at least twelve 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.

• d. Foreign currencies

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

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

Non-monetary items measured at fair value that are denominated in foreign currencies are retranslated at the rates prevailing at the date when the fair value was determined. Exchange differences arising on the retranslation of non-monetary items are included in profit or loss for the period except for exchange differences arising from the retranslation of non-monetary items in respect of which gains and losses are recognized directly in other comprehensive income, in which case, the exchange differences are also recognized directly in other comprehensive income.

Non-monetary items that are measured at historical cost in a foreign currency are not retranslated.

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For the purpose of presenting the financial statements, the functional currencies of the entities (including operations of the subsidiaries in other countries that use currencies which are different from the functional currency of the Company) are translated into the presentation currency - the New Taiwan dollar as follows: Assets and liabilities are translated at the exchange rates prevailing at the end of the reporting period; income and expense items are translated at the average exchange rates for the period. The resulting currency translation differences are recognized in other comprehensive income.

On the disposal of a foreign operation (i.e., a disposal of the Company’s entire interest in a foreign operation, or a disposal involving loss of control over a subsidiary that includes a foreign operation), all of the exchange differences accumulated in equity in respect of that operation are reclassified to profit or loss.

In relation to a partial disposal of a subsidiary that does not result in the Company losing of control over the subsidiary, the proportionate share of accumulated exchange differences is not recognized in profit or loss. For all other partial disposals, the proportionate share of the accumulated exchange differences recognized in other comprehensive income is reclassified to profit or loss.

• e. Inventories

Inventories consist of raw materials, packaging materials and supplies, work-in-process, finished goods and merchandise and are stated at the lower of cost or net realizable value. Inventory write-downs are made by item, except where it may be appropriate to group similar or related items. Net realizable value is the estimated selling price of inventories less all estimated costs of completion and costs necessary to make the sale. Inventories are recorded at weighted-average cost on the balance sheet date.

• f. Investment in subsidiaries

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

Subsidiaries are the entities controlled by the Company.

Under the equity method, investment in a subsidiary is initially recognized at cost and adjusted thereafter to recognize the Company’s share of the profit or loss and other comprehensive income of the subsidiary. The Company also recognizes the changes in the Company’s share of equity of subsidiaries attributable to the Company.

Changes in the Company’s ownership interest in a subsidiary that do not result in the Company losing control of the subsidiary are equity transactions. The Company recognizes directly in equity any difference between the carrying amount of the investment and the fair value of the consideration paid or received.

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

Any excess of the cost of acquisition over the Company’s share of the net fair value of the identifiable assets and liabilities of a subsidiary at the date of acquisition is recognized as goodwill, which is included within the carrying amount of the investment and is not amortized. Any excess of the Company’s share of the net fair value of the identifiable assets and liabilities over the cost of acquisition is recognized immediately in profit or loss.

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The Company assesses its investment for any impairment by comparing the carrying amount with the estimated recoverable amount as assessed based on the entire financial statements of the invested company. Impairment loss is recognized when the carrying amount exceeds the recoverable amount. If the recoverable amount of the investment subsequently increases, the Company recognizes reversal of the impairment loss; the adjusted post-reversal carrying amount should not exceed the carrying amount that would have been recognized (net of amortization or depreciation) had no impairment loss been recognized in prior years. An impairment loss recognized on goodwill cannot be reversed in a subsequent period.

When the Company loses control of a subsidiary, it recognizes the investment retained in the former subsidiary at its fair value at the date when control is lost. The difference between the fair value of the retained investment plus any consideration received and the carrying amount of previous investment at the date when control is lost is recognized as a gain or loss in profit or loss. Besides, the Company accounts for all amounts previously recognized in other comprehensive income in relation to that subsidiary on the same basis as would be required if the Company had directly disposed of the related assets or liabilities.

Profits and losses resulting from downstream transactions are eliminated in full in the financial statements. Profits and losses transactions from upstream and transactions between subsidiaries are recognized in the financial statements only to the extent of interests in the subsidiaries that are not related to the Company.

g. Property, plant and equipment

Property, plant and equipment (including assets held under finance leases) are stated at cost, less recognized accumulated depreciation and accumulated impairment loss.

Properties in the course of construction for production, supply or administrative purposes are carried at cost, less any recognized impairment loss. Cost includes professional fees and borrowing costs eligible for capitalization. Such properties are depreciated and classified to the appropriate categories of property, plant and equipment when completed and ready for intended use.

Depreciation of property, plant and equipment is recognized using the straight-line method. Each significant part is depreciated separately. If a lease term is shorter than the assets’ useful lives, such assets are depreciated over the lease term. The estimated useful lives, residual values and depreciation methods are reviewed at the end of each reporting period, with the effect of any changes in the estimates accounted for on a prospective basis.

On derecognition of an item of property, plant and equipment, the difference between the sales proceeds and the carrying amount of the asset is recognized in profit or loss.

• h. Investment properties

Investment properties are properties held to earn rentals and/or for capital appreciation.

Investment properties are measured initially at cost, including transaction costs. Subsequent to initial recognition, investment properties are measured at cost less accumulated depreciation and accumulated impairment loss. Depreciation is recognized using the straight-line method or the fixed-percentage of declining-balance method.

On derecognition of an investment property, the difference between the net disposal proceeds and the carrying amount of the asset is included in profit or loss.

• 15 -

• i. Intangible assets

• 1) Intangible assets acquired separately

Intangible assets with finite useful lives that are acquired separately are initially measured at cost and subsequently measured at cost less accumulated amortization and accumulated impairment loss. Amortization is recognized on a straight-line basis. The estimated useful life, residual value, and amortization method are reviewed at the end of each reporting period, with the effect of any changes in estimate accounted for on a prospective basis. Intangible assets with indefinite useful lives that are acquired separately are measured at cost less accumulated impairment loss.

• 2) Derecognition of intangible assets

On derecognition of an intangible asset, the difference between the net disposal proceeds and the carrying amount of the asset is recognized in profit or loss.

• j. Impairment of property, plant and equipment, right-of-use asset, intangible assets

At the end of each reporting period, the Company reviews the carrying amounts of its property, plant and equipment, right-of-use asset and intangible assets, to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs. When a reasonable and consistent basis of allocation can be identified, corporate assets are also allocated to individual cash-generating units, or otherwise they are allocated to the smallest group of cash-generating units for which a reasonable and consistent allocation basis can be identified.

Recoverable amount is the higher of fair value less costs to sell and value in use. If the recoverable amount of an asset or cash-generating unit is estimated to be less than its carrying amount, the carrying amount of the asset or cash-generating unit is reduced to its recoverable amount, with the resulting impairment loss recognized in profit or loss.

When an impairment loss is subsequently reversed, the carrying amount of the asset or cash-generating unit is increased to the revised estimate of its recoverable amount, but only to the extent of the carrying amount that would have been determined had no impairment loss been recognized for the asset or cash-generating unit in prior years. A reversal of an impairment loss is recognized in profit or loss.

• k. Financial instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

• 16 -

1) Financial assets

All regular way purchases or sales of financial assets are recognized and derecognized on a trade date basis.

• a) Measurement category

Financial assets are classified into the following categories: Financial assets at FVTPL, financial assets at amortized cost and investments in equity instruments at FVTOCI

• i. Financial assets at FVTPL

Financial assets are classified as at FVTPL when such a financial asset is mandatorily classified as at FVTPL. Financial assets mandatorily classified as at FVTPL include investments in equity instruments which are not designated as at FVTOCI.

Financial assets at FVTPL are subsequently measured at fair value, with any gains or losses arising on remeasurement recognized in profit or loss. Fair value is determined in the manner described in Note 27.

• ii. Financial assets at amortized cost

Financial assets that meet the following conditions are subsequently measured at amortized cost:

• i) The financial asset is held within a business model whose objective is to hold financial assets in order to collect contractual cash flows; and

• ii) The contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Subsequent to initial recognition, financial assets at amortized cost, including cash and cash equivalents, notes receivable, trade receivables, other receivables and other financial assets that measured at amortized cost, which equals the gross carrying amount determined using the effective interest method less any impairment loss. Exchange differences are recognized in profit or loss.

• iii. Investments in equity instruments at FVTOCI

On initial recognition, the Company may make an irrevocable election to designate investments in equity instruments as at FVTOCI. Designation as at FVTOCI is not permitted if the equity investment is held for trading or if it is contingent consideration recognized by an acquirer in a business combination.

Investments in equity instruments at FVTOCI are subsequently measured at fair value with gains and losses arising from changes in fair value recognized in other comprehensive income and accumulated in other equity. The cumulative gain or loss will not be reclassified to profit or loss on disposal of the equity investments; instead, it will be transferred to retained earnings.

Dividends on these investments in equity instruments are recognized in profit or loss when the Company’s right to receive the dividends is established, unless the dividends clearly represent a recovery of part of the cost of the investment.

• 17 -

• b) Impairment of financial assets and contract assets

The Company recognizes a loss allowance for expected credit losses on financial assets at amortized cost (including trade receivables) and finance lease receivables.

The Company always recognizes lifetime expected credit losses (ECLs) for trade receivables and finance lease receivables. For all other financial instruments, the Company recognizes lifetime ECLs when there has been a significant increase in credit risk since initial recognition. If, on the other hand, the credit risk on a financial instrument has not increased significantly since initial recognition, the Company measures the loss allowance for that financial instrument at an amount equal to 12-month ECLs.

Expected credit losses reflect the weighted average of credit losses with the respective risks of default occurring as the weights. Lifetime ECLs represent the expected credit losses that will result from all possible default events over the expected life of a financial instrument. In contrast, 12-month ECLs represent the portion of lifetime ECLs that is expected to result from default events on a financial instrument that are possible within 12 months after the reporting date.

The Company recognizes an impairment gain or loss in profit or loss for all financial instruments with a corresponding adjustment to their carrying amount through a loss allowance account.

• c) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset 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 sum of the consideration received and receivable is recognized in profit or loss. On derecognition of an investment in a debt instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss which had been recognized in other comprehensive income is recognized in profit or loss. However, on derecognition of an investment in an equity instrument at FVTOCI, the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in profit or loss, and the cumulative gain or loss which had been recognized in other comprehensive income is transferred directly to retained earnings, without recycling through profit or loss.

2) Equity instruments

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

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

The repurchase of the Company’s own equity instruments is recognized in and deducted directly from equity. No gain or loss is recognized in profit or loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.

• 18 -

3) Financial liabilities

• a) Subsequent measurement

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

• b) Derecognition of financial liabilities

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

• l. Revenue recognition

The Company identifies contracts with customers and recognizes revenue when performance obligations are satisfied.

Revenue from the sale of goods

Revenue from the sale of goods comes from sales of nutritious foods, cooking products. Sales of goods are recognized as revenue when the goods are delivered to the customer’s specific location because it is the time when the customer has full discretion over the manner of distribution and price to sell the goods, has the primary responsibility for sales to future customers and bears the risks of obsolescence. Trade receivables and contract assets are recognized concurrently. Any amounts previously recognized as contract assets are reclassified to trade receivables when the remaining obligations are performed. When the customer initially purchases the goods, the transaction price received is recognized as a contract liability until the goods have been delivered to the customer.

m. Leases

At the inception of a contract, the Company assesses whether the contract is, or contains, a lease.

The Company as lessee

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

Right-of-use assets are initially measured at cost, which comprises the initial measurement of lease liabilities adjusted for lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs needed to restore the underlying assets, and less any lease incentives received. Right-of-use assets are subsequently measured at cost less accumulated depreciation and impairment losses and adjusted for any remeasurement of the lease liabilities. Right-of-use assets are presented on a separate line in the consolidated balance sheets.

Right-of-use assets are depreciated using the straight-line method from the commencement dates to the earlier of the end of the useful lives of the right-of-use assets or the end of the lease terms.

Lease liabilities are initially measured at the present value of the lease payments, which comprise fixed payments, in-substance fixed payments. The lease payments are discounted using the interest rate implicit in a lease, if that rate can be readily determined. If that rate cannot be readily determined, the Company uses the lessee’s incremental borrowing rate.

• 19 -

Subsequently, lease liabilities are measured at amortized cost using the effective interest method, with interest expense recognized over the lease terms. When there is a change in a lease term resulting from a change to those payments, the Company remeasures the lease liabilities with a corresponding adjustment to the right-of-use-assets. However, if the carrying amount of the right-of-use assets is reduced to zero, any remaining amount of the remeasurement is recognized in profit or loss. Lease liabilities are presented on a separate line in the consolidated balance sheets.

• n. Employee benefits

1) Short-term employee benefits

Liabilities recognized in respect of short-term employee benefits are measured at the undiscounted amount of the benefits expected to be paid in exchange for the related services.

2) Retirement benefits

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

Defined benefit costs (including service cost, net interest and remeasurement) under the defined contribution retirement benefit plans are determined using the projected unit credit method. Service cost (including current service cost) and net interest on the net defined benefit liabilities (assets) are recognized as employee benefits expense in the period they occur. Remeasurement, comprising actuarial gains and losses, effect of changes to asset ceiling and return on plan assets (excluding interest), is recognized in other comprehensive income in the period in which they occur. Remeasurement recognized in other comprehensive income is reflected immediately in retained earnings and will not be reclassified to profit or loss.

Net defined benefit liabilities (assets) represent the actual deficit (surplus) in the Company’s defined benefit plan. Any surplus resulting from this calculation is limited to the present value of any refunds from the plans or reductions in future contributions to the plans.

• 3) Termination benefits

A liability for a termination benefit is recognized at the earlier of when the Company can no longer withdraw the offer of the termination benefit and when the Company recognizes any related restructuring costs.

• o. Taxation

Income tax expense represents the sum of the tax currently payable and deferred tax.

1) Current tax

Income tax payable is based on taxable profit for the year determined according to the applicable tax laws of each tax jurisdiction.

According to the Income Tax Act, 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.

• 20 -

• 2) Deferred tax

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

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

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

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

• 3) Current tax and deferred taxes for the year

Current tax 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 tax and deferred tax are also recognized in other comprehensive income or directly in equity, respectively.

5. CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

The Company considers the recent development of the COVID-19 in Taiwan and its economic environment implications when making its critical accounting estimates in cash flow projections, growth rate, discount rate, profitability, etc. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised if the revisions affect only that period or in the period of the revisions and future periods if the revisions affect both current and future periods.

Estimate of return liability

The sales of goods are recognized upon completion of the profit-making process, on the conditions set out in Note 4. Management estimates the return liability based on market condition and the historical return rates. The sales return allowance are recorded as the deduction of sales and management periodically reviews the reasonableness of accounting estimates.

• 21 -

6. CASH AND CASH EQUIVALENTS

Cash on hand Checking accounts and demand deposits Cash equivalents (investments with original maturities of 3 months or less) Time deposits		December 31	December 31
		2022 $ 785 227,079 117,776 $ 345,640	2021 $ 1,130 294,015 312,679 $ 607,824

The market rate intervals of cash in bank at the end of the reporting period were as follows:

Bank balance	**December 31 **
	2022 2021 0.001%-4.800% 0.001%-2.900%

7. FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

Financial assets at fair value through profit or loss (FVTPL)-current Financial assets mandatorily classified as at FVTPL Non-derivative financial assets Listed shares Mutual funds Note cash Financial assets at FVTPL-non-current Financial assets mandatorily classified as at FVTPL Non-derivative financial assets Domestic unlisted shares		December 31	December 31
		2022 $ 22,496 962,351 - $ 984,847 $ 2,059	2021 $ - 944,978 28,239 $ 973,217 $ 2,244

8. FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME

Current Investments in equity instruments at fair value through other comprehensive income (FVTOCI) Non-current Investments in equity instruments at FVTOCI		December 31	December 31
		2022 $ 21,627 $ 159,057	2021 $ 21,185 $ 112,265

• 22 -

Investments in Equity Instruments at FVTOCI

Current Listed shares and emerging market shares Ordinary shares - Far Eastern International Bank Ordinary shares - Chunghwa Telecom Co., Ltd. Non-current Listed shares and emerging market shares Ordinary shares - GeneFerm Biotechnology Co., Ltd. Unlisted shares Ordinary shares - Dah Chung Bills Finance Corp.		December 31	December 31
		2022 $ 16,135 5,492 $ 21,627 $ 143,508 15,549 $ 159,057	2021 $ 15,523 5,662 $ 21,185 $ 95,136 17,129 $ 112,265

These investments in equity instrument are not held for trading. Instead, they are held for medium- to long-term strategic purposes. Accordingly, the management elected to designate these investments in equity instruments as at FVTOCI as they believe that recognizing short-term fluctuations in these investments’ fair value in profit or loss would not be consistent with the Company’s strategy of holding these investments for long-term purposes.

9. FINANCIAL ASSETS AT AMORTIZED COST

Current Time deposits with original maturities of more than 3 months		December 31	December 31
		2022 $ 758,484	2021 $ 1,309,153

The ranges of interest rates for time deposits with original maturities of more than 3 months were approximately 0.76%-5.25% and 0.40%-2.62% per annum as of December 31, 2022 and 2021, respectively.

• 23 -

10. NOTES RECEIVABLE, TRADE RECEIVABLES AND OTHER RECEIVABLES

Notes receivable Operating Trade receivables At amortized cost Gross carrying amount Less: Allowance for impairment loss Other receivables Accrued interest Others		December 31	December 31
		2022 $ 1,286 $ 1,939,504 (2,274) $ 1,937,230 $ 3,557 10,758 $ 14,315	2021 $ 175 $ 1,829,594 (908) $ 1,828,686 $ 2,939 9,734 $ 12,673

The average credit period of sales of goods was 30-90 days. In order to minimize credit risk, the management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Company reviews the recoverable amount of each individual trade debt at the end of the reporting period to ensure that adequate allowance is made for possible irrecoverable amounts.

The Company measures the loss allowance for trade receivables at an amount equal to lifetime ECLs. The expected credit losses on trade receivables are estimated using a provision matrix approach considering the past default experience of the customer, the customer’s current financial position, economic condition of the industry in which the customer operates, as well as the GDP forecasts and industry outlook.

The Company writes off a trade receivable when there is information indicating that the debtor is in severe financial difficulty and there is no realistic prospect of recovery. For trade receivables that have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivables due. Where recoveries are made, these are recognized in profit or loss.

The following table details the loss allowance of trade receivables based on the Company’s provision matrix.

December 31, 2022

Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost	Not Past Due 0.01% $ 1,929,194 (239) $ 1,928,955	Less than 30 Days 4.46% $ 4,074 (182) $ 3,892	31 to 90 Days 91 to 180 Days Over 180 Days 14.80% 44.16% 100.00% $ 6,122 $ 811 $ 589 (906) (358) (589) $ 5,216 $ 453 $ -	Total $ 1,940,790 (2,274) $ 1,938,516

• 24 -

December 31, 2021

Expected credit loss rate Gross carrying amount Loss allowance (Lifetime ECL) Amortized cost	Not Past Due 0.01% $ 1,822,307 (174) $ 1,822,133	Less than 30 Days 4.98% $ 5,083 (253) $ 4,830	31 to 90 Days 91 to 180 Days Over 180 Days 15.82% 50.00% 100.00% $ 2,194 $ 102 $ 83 (347) (51) (83) $ 1,847 $ 51 $ -	Total $ 1,829,769 (908) $ 1,828,861

The movements of the loss allowance of trade receivables were as follows:

Balance at January 1 Add: Net remeasurement of loss allowance Less: Amounts written off Balance at December 31	**For the Year Ended December 31 **	**For the Year Ended December 31 **	**For the Year Ended December 31 **
		2022 $ 908 1,858 (492) $ 2,274	2021 $ 1,116 419 (627) $ 908

11. INVENTORIES

Merchandise Finished goods Work in progress Raw materials Packing materials		December 31	December 31
		2022 $ 332,409 1,305,660 213,341 782,833 57,346 $ 2,691,589	2021 $ 214,067 881,331 130,125 422,421 42,985 $ 1,690,929

The cost of inventories recognized as cost of goods sold for the year ended December 31, 2022 included loss on write-downs of inventories $4,283 thousand and loss on abandoned inventories of $7,719 thousand. The cost of inventories recognized as cost of goods sold for the year ended December 31, 2021 included reversals of inventory write-downs of $9,508 thousand and loss on abandoned inventories of $7,434 thousand.

12. PREPAYMENTS

Prepayments for purchases Prepayments for rent Prepayments for equipment parts Prepayments for fuel oil Prepayments for insurance Prepayments for advertisements Others		December 31	December 31
		2022 $ 182,520 19,909 19,493 5,138 481 1,573 24,026 $ 253,140	2021 $ 294,232 20,037 18,351 2,520 426 2,224 16,210 $ 354,000

• 25 -

13. INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD

Unlisted companies Accession Limited Standard Investment (Cayman) Limited (“Cayman Standard”) Standard Dairy Products Taiwan Limited (“Standard Dairy Products”) Charng Hui Ltd. (“Charng Hui”) Domex Technology Corporation (“Domex Technology”) Standard Beverage Company Limited (“Standard Beverage”) Shanghai Le Ben Tuo Health Technology Co., Ltd. (“Shanghai Le Ben Tuo”) Standard Foods, LLC. Standard Great Foods Singapore PTE. LTD. Name of Subsidiary Accession Limited Cayman Standard Standard Dairy Products Charng Hui Domex Technology Standard Beverage Shanghai Le Ben Tuo (Note 1) Standard Foods, LLC. Standard Great Foods Singapore PTE. LTD. (Note 2)		**December 31 **
		2022 2021 $ 3,645,244 $ 3,546,644 4,685,090 5,538,645 1,042,081 1,134,020 297,285 422,385 328,587 425,275 81,609 82,390 - 32,168 9,213 8,304 320 - $ 10,089,429 $ 11,189,831 Proportion of Ownership and Voting Rights
		December 31
		2022 2021 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 52.0% 52.0% 100.0% 100.0% - 51.0% 100.0% 100.0% 100.0% -

Note 1: The Company transferred its 51% ownership of Shanghai Le Ben Tuo to its indirect subsidiary, Shanghai New Vitality Health Technology (Group) Co., Ltd., through restructuring of the organization.

Note 2: The Company invested US$14 thousand in November 2022.

Refer to Note 31 for the details of the subsidiaries indirectly held by the Company.

• 26 -

14. PROPERTY, PLANT AND EQUIPMENT

Freehold Land Cost Balance at January 1, 2021 $ 399,296 Additions - Disposals - Reclassified 10,805 Balance at December 31, 2021$ 410,101 Accumulated depreciation and impairment Balance at January 1, 2021 $ - Disposals - Depreciation expenses - Balance at December 31, 2021$ - Carrying amount at December 31, 2021 $ 410,101 Cost Balance at January 1, 2022 $ 410,101 Additions - Disposals - Reclassified 810 Balance at December 31, 2022$ 410,911 Accumulated depreciation and impairment Balance at January 1, 2022 $ - Disposals - Depreciation expenses - Balance at December 31, 2022$ - Carrying amount at December 31, 2022 $ 410,911	Buildings $ 1,063,424 - (56,063 ) 59,790 $ 1,067,151 $ 680,676 (45,844 ) 58,855 $ 693,687 $ 373,464 $ 1,067,151 - (3,648 ) 46,929 $ 1,110,432 $ 693,687 (2,585 ) 54,718 $ 745,820 $ 364,612	Equipment $ 2,270,902 - (156,403 ) 115,620 $ 2,230,119 $ 1,850,084 (149,646 ) 124,880 $ 1,825,318 $ 404,801 $ 2,230,119 - (25,247 ) 39,505 $ 2,244,377 $ 1,825,318 (24,173 ) 106,007 $ 1,907,152 $ 337,225	Other Equipment $ 184,244 - (17,238 ) 35,752 $ 202,758 $ 151,843 (16,318 ) 14,283 $ 149,808 $ 52,950 $ 202,758 - (11,628 ) 19,313 $ 210,443 $ 149,808 (11,557 ) 16,944 $ 155,195 $ 55,248	Property in Construction $ 117,624 204,677 - (221,967) $ 100,334 $ - - - $ - $ 100,334 $ 100,334 220,053 - (106,557) $ 213,830 $ - - - $ - $ 213,830	Total $ 4,035,490 204,677 (229,704 ) - $ 4,010,463 $ 2,682,603 (211,808 ) 198,018 $ 2,668,813 $ 1,341,650 $ 4,010,463 220,053 (40,523 ) - $ 4,189,993 $ 2,668,813 (38,315 ) 177,669 $ 2,808,167 $ 1,381,826

No impairment assessment was performed for the years ended December 31, 2022 and 2021 as there was no indication of impairment.

The above items of property, plant and equipment are depreciated on a straight-line basis over the following estimated useful lives of the assets:

Building Main buildings 40 years Electrical and mechanical equipment 8-15 years Engineering 7-39 years Others 3-14 years Equipment Main equipment 2-20 years Engineering 7-20 years Others 3-15 years Other equipment 2-15 years

• 27 -

15. LEASE ARRANGEMENTS

a. Right-of-use assets

Carrying amounts Land Buildings Office equipment Transportation equipment Additions to right-of-use assets Depreciation charge for right-of-use assets Land Buildings Office equipment Transportation equipment		**December 31 **	**December 31 **
	2022 $ 1,459 112,218 1,664 1,814 $ 117,155 For the Year Ended		2021 $ 2,179 136,528 349 1,404 $ 140,460 December 31
		2022 $ 11,098 $ 1,854 31,360 377 767 $ 34,358	2021 $ 149,116 $ 1,853 25,870 96 792 $ 28,611

b. Lease liabilities

Carrying amounts Current Non-current		December 31	December 31
		2022 $ 33,017 $ 85,632	2021 $ 31,963 $ 108,617

Range of discount rates for lease liabilities was as follows:

Land Buildings Office equipment Transportation equipment	December 31
	2022 2021 1.07% 1.07% 1.07% 1.07% 1.07% 1.07% 1.07%-1.25% 1.07%

• c. Material lease-in activities and terms

The Company leases land, buildings and transportation equipment for the use of parking garage, offices, office equipment and official vehicles with lease terms of 1 to 6 years. The Company does not have bargain purchase options to acquire the leasehold land and buildings at the end of the lease terms. In addition, the Company is prohibited from subleasing or transferring all or any portion of the underlying assets without the lessor’s consent.

• 28 -

d. Other lease information

Expenses relating to short-term leases Total cash outflow for leases	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 31,063 $ (65,423)	2021 $ 19,860 $ (44,136)

The Company’s leases of leases certain office equipment and retail stores qualify as short-term leases. The Company has elected to apply the recognition exemption and, thus, did not recognize right-of-use assets and lease liabilities for these leases.

16. INTANGIBLE ASSETS

Cost Balance at January 1, 2021 Additions Balance at December 31, 2021 Accumulated amortization and impairment Balance at January 1, 2021 Amortization expenses Balance at December 31, 2021 Carrying amount at December 31, 2021 Cost Balance at January 1, 2022 Additions Balance at December 31, 2022 Accumulated amortization and impairment Balance at January 1, 2022 Amortization expenses Balance at December 31, 2022 Carrying amount at December 31, 2022

Computer Software $ 223,924 16,979 $ 240,903 $ 210,264 9,538 $ 219,802 $ 21,101 $ 240,903 20,156 $ 261,059 $ 219,802 14,741 $ 234,543 $ 26,516

No impairment assessment was performed for the years ended December 31, 2022 and 2021 as there was no indication of impairment.

• 29 -

Intangible assets are amortized on straight-line basis over their estimated useful lives as follows:

Computer software

2-3 years

17. OTHER ASSETS

Current Advances to officers Right to recover a product Others Non-current Refundable deposits Others		December	31
		2022 $ 29,084 29,179 - $ 58,263 $ 17,430 5,678 $ 23,108	2021 $ 17,330 16,978 623 $ 34,931 $ 23,633 4,686 $ 28,319

18. NOTES PAYABLE AND TRADE PAYABLES

Notes payable Operating Trade payables Operating		December 31	December 31
		2022 $ 20,176 $ 797,921	2021 $ 20,201 $ 732,876

The average credit period of payables for purchases of goods was 30-90 days. The Company has financial risk management policies in place to ensure that all payables are paid within the pre-agreed credit terms.

• 30 -

19. OTHER LIABILITIES

Current Other payables Payable for salaries and bonuses Payable for compensation of employees Payable for remuneration of directors Payable for commission and rebates Advertisement payable Payable for royalties Payable for freight Payable for purchases of equipment Payable for labor and health insurance Payable for environmental recycling fee Others Other liabilities Return liability and Others Non-current Other liabilities Guarantee deposits		December 31	December 31
		2022 $ 160,588 19,470 8,237 542,304 260,804 25,916 7,220 62,953 19,278 9,520 145,384 $ 1,261,674 $ 65,393 $ 150	2021 $ 194,941 38,903 16,716 476,823 194,686 24,817 6,011 65,890 17,613 10,322 214,102 $ 1,260,824 $ 43,418 $ 150

In accordance with business practices, the Company accepts the returns of goods sold. Taking into account the historical experience in the past, the Company estimates the return rate with the most probable amount, and recognizes the return liability, which accounts for other current liabilities, and related product rights to be returned, which accounts for other current assets.

20. RETIREMENT BENEFIT PLANS

a. Defined contribution plan

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

b. Defined benefit plan

The defined benefit plan of the Company is operated by the government of the Republic of China (“ROC”) in accordance with the Labor Standards Act. Pension benefits are calculated on the basis of the length of service and average monthly salaries of the six months before retirement. The Company makes monthly contributions to a pension fund administered by the pension fund monitoring committee. Pension contributions are deposited in the Bank of Taiwan in the committee’s name.

• 31 -

Before the end of each year, the Company assesses the balance in the pension fund. If the amount of the balance in the pension fund is inadequate to pay retirement benefits for employees who conform to retirement requirements in the next year, the Company is required to fund the difference in one appropriation that should be made before the end of March of the next year. The pension fund is managed by the Bureau of Labor Funds, Ministry of Labor (the “Bureau”); the Company has no right to influence the investment policy and strategy.

The amounts included in the balance sheets in respect of the Company’s defined benefit plan were as follows:

Present value of defined benefit obligation Fair value of plan assets Net defined benefit liability		December 31	December 31
		2022 $ 419,983 (296,360) $ 123,623	2021 $ 493,434 (318,567) $ 174,867

Movements in net defined benefit liability (asset) were as follows:

	Present Value
	of the Defined		Net Defined
	Benefit	Fair Value of	Benefit
	Obligation	the Plan Assets	Liability
Balance at January 1, 2021	$ 515,182	$ (326,789)	$ 188,393
Service cost
Current service cost	3,647	-	3,647
Net effects in employee transfer	18,983	-	18,983
Net interest expense (income)	2,576	(1,694)	882
Recognized in profit or loss	25,206	(1,694)	23,512
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	-	(4,097)	(4,097)
Actuarial loss - changes in demographic
assumptions	12,953	-	12,953
Actuarial profit - experience adjustments	(7,563)	-	(7,563)
Recognized in other comprehensive income	5,390	(4,097)	1,293
Contributions from the employer	-	(38,331)	(38,331)
Benefits paid	(52,344)	52,344	-
Balance at December 31, 2021	493,434	(318,567)	174,867
Service cost
Current service cost	1,625	-	1,625
Net effects in employee transfer	72	-	72
Net interest expense (income)	2,467	(1,663)	804
Recognized in profit or loss	4,164	(1,663)	2,501
			(Continued)

• 32 -

	Present Value	Present Value
	of the Defined				Net Defined
		Benefit	Fair Value of		Benefit
	Obligation		the Plan Assets		Liability
Remeasurement
Return on plan assets (excluding amounts
included in net interest)	$	-	$ (25,521)		$ (25,521)
Actuarial loss - changes in demographic
assumptions		1,344		-	1,344
Actuarial loss - changes in financial
assumptions		(30,304)		-	(30,304)
Actuarial loss - experience adjustments		6,117		-	6,117
Recognized in other comprehensive income		(22,843)		(25,521)	(48,364)
Contributions from the employer		-		(5,381)	(5,381)
Benefits paid		(54,772)		54,772	-
Balance at December 31, 2022	$	419,983	$ (296,360)		$ 123,623
					(Concluded)

Through the defined benefit plan under the Labor Standards Act, the Company is exposed to the following risks:

• 1) Investment risk: The plan assets are invested in domestic and foreign equity and debt securities, bank deposits, etc. The investment is conducted at the discretion of the Bureau or under the mandated management. However, in accordance with relevant regulations, the return generated by plan assets should not be below the interest rate for a 2-year time deposit with local banks.

• 2) Interest risk: A decrease in the government bond interest rate will increase the present value of the defined benefit obligation; however, this will be partially offset by an increase in the return on the plan’s debt investments.

• 3) Salary risk: The present value of the defined benefit obligation is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants 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 significant assumptions used for the purposes of the actuarial valuations were as follows:

Discount rate Expected rate of salary increase	December 31
	2022 2021 1.500% 0.500% 3.250% 3.000%

• 33 -

If possible reasonable changes in each of the significant actuarial assumptions occur and all other assumptions remain constant, the present value of the defined benefit obligation will increase (decrease) as follows:

Discount rate 0.250% increase 0.250% decrease Expected rate of salary increase 0.250% increase 0.250% decrease		**December **	**31 **
		2022 $ (9,350) $ 9,660 $ 9,337 $ (9,086)	2021 $ (11,755) $ 12,168 $ 11,678 $ (11,347)

The sensitivity analysis presented above may not be representative of the actual change in the present value of the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

The expected contributions to the plan for the next year The average duration of the defined benefit obligation		**December **	**31 **
		2022 $ 5,556 9.1 years	2021 $ 28,055 9.6 years

21. EQUITY

• a. Share capital

1) Ordinary shares

Shares authorized (in thousands of shares) Shares authorized, par value of $10 (in thousands of NT$) Shares issued and fully paid (in thousands of shares) Shares issued (in thousands of NT$)		**December 31 **	**December 31 **
		2022 920,000 $ 9,200,000 915,089 $ 9,150,897	2021 920,000 $ 9,200,000 915,089 $ 9,150,897

2) Global depositary receipts

As of December 31, 2022, a total of 6,908.4 units of Global Depositary Receipts (GDRs) (representing 34,542 shares of the Company’s ordinary shares), where each GDR representing five shares of the Company’s ordinary shares. Holders of the GDRs may request at any time that the shares represented by the GDRs be transferred to them.

• 34 -

b. Capital surplus

May be used to offset a deficit, distributed as cash dividends, or transferred to share capital (1) Recognized from the difference between consideration received or paid and the carrying amount of the subsidiaries’ net assets during actual disposal or acquisition Recognized from treasury share transactions May be used to offset a deficit Changes in percentage of ownership interests in subsidiaries (2)		December 31	December 31
		2022 $ 1 156,271 709 $ 156,981	2021 $ 1 143,599 466 $ 144,066

• 1) 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 and to once a year).

• 2) Such capital surplus arises from the effect of changes in ownership interests in subsidiaries that result from equity transactions other than actual disposals or acquisitions, or from changes in capital surplus of subsidiaries accounted for using the equity method.

• c. Retained earnings and dividend policy

Under the dividend policy as set forth in the amended Articles, where the Company made profit in a fiscal year, the profit shall be appropriated from (less any paying taxes and deficit):

• 1) 10% thereof as legal reserve;

• 2) Special reserve provided or reversed in accordance with the regulations;

• 3) 30% to 100% of this the sum of the remainder and prior years’ unappropriated earnings as dividends.

The Company’s Articles of Incorporation also prescribe that 30% to 100% of dividends shall be paid in cash; however, if the Company has major investment plans for which external funds are not available, the percentage may be lowered to 5% to 20%. The distribution plan shall be proposed by the Company’s board of directors and resolved in the shareholders’ meeting for distribution of dividends and bonus to shareholders. For the policies on distribution of the compensation of employees and remuneration of directors after amendment, refer to Note 23(h). compensation of employees and remuneration of directors’.

Appropriation of earnings to legal reserve shall be made until the legal reserve equals the Company’s paid-in capital. Legal reserve may be used to offset 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 capital or distributed in cash.

• 35 -

The appropriations of earnings 2021 and 2020 approved in the shareholders’ meetings on June 16, 2022 and July 22, 2021, respectively, were as follows:

Legal reserve Cash dividends Cash dividends per share (NT$)	Appropriation of Earnings	Appropriation of Earnings	Appropriation of Earnings
	For the Year Ended December 31
		2021 $ 245,834 $ 1,738,670 $ 1.9	2020 $ 319,167 $ 2,287,724 $ 2.5

The appropriations of earnings for 2022 were proposed by the Company’s board of directors on March 15, 2023. The appropriations and dividends per share were as follows:

	Appropriation	Appropriation
	of	Earnings
Legal reserve	$	126,036
Special reserve	$	1,180,466
Cash dividends	$	1.29

The appropriations of earnings for 2022 are subject to the resolution of the shareholders in their meeting to be held on June 16, 2023.

• d. Special reserve

Balance at January 1 and December 31	For the Year Ended	For the Year Ended	December 31
		2022 $ 577,494	2021 $ 577,494

Appropriation for special reserve should be made in the amount equal to the net debit balance of other equity. Any special reserve appropriated may be reversed to the extent that the net debit balance reverses and, thereafter, distributed.

e. Other equity items

• 1) Exchange differences on translation of the financial statements of foreign operations

Balance at January 1 Recognized for the year Exchange differences on translation of the financial statements of foreign operations Other comprehensive income recognized for the year Balance at December 31	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2022 $ (612,857) 123,680 123,680 $ (489,177)	2021 $ (572,206) (40,651) (40,651) $ (612,857)

• 36 -

• 2) Unrealized (loss) gain on financial assets at FVTOCI

Balance at January 1 Recognized for the year Unrealized (loss) gain- equity instruments Other comprehensive income recognized for the year Balance at December 31	For the Year Ended	For the Year Ended	December 31
		2022 $ 422,781 (184,132) (184,132) $ 238,649	2021 $ 216,714 206,067 206,067 $ 422,781

• f. Treasury shares

	Shares Held by
	Subsidiaries (In
	Thousands of
Purpose of Buy-back	Shares)
Number of shares at January 1, 2022 and December 31, 2022	6,669
Number of shares at January 1, 2021 and December 31, 2021	6,669

For the purpose of maintaining the Company’s credit and shareholders’ equity, the Company’s shares held by its subsidiaries at the end of the reporting periods were as follows:

Name of Subsidiary Number of Shares Held (In Thousands of Shares) December 31, 2022 Chang Hui 6,669 December 31, 2021 Chang Hui 6,669	Carrying Amount Market Price $ 21,182 $ 265,778 $ 21,182 $ 352,815

The Company’s shares held by subsidiaries were treated as treasury shares, aside from the rights to participate in any share issuance for cash and to vote, the rest were similar to general shareholders’ rights.

22. REVENUE

Revenue from contracts with customers Revenue from sale of goods	**For the Year Ended December 31 **	**For the Year Ended December 31 **	**For the Year Ended December 31 **
		2022 $ 12,168,430	2021 $ 12,496,867

• 37 -

a. Contract balances

December 31, 2022 December 31, 2021 January 1, 2021 Notes receivable (Note 10) $ 1,286 $ 175 $ 5 Trade receivables (Note 10) $ 1,939,504 $ 1,829,594 $ 1,981,590 Trade receivables from related parties (Note 10) $ 145,838 $ 127,773 $ 136,585 Contract liabilities - current Sale of goods $ 747 $ 17,285 $ 21,440 b. Disaggregation of revenue Reportable Segments Nutritious Foods Cooking Products Others Total For the year ended December 31, 2022 Type of goods or services Sale of goods $ 9,521,296 $ 2,277,017 $ 370,117 $ 12,168,430 For the year ended December 31, 2021 Type of goods or services Sale of goods $ 9,938,204 $ 2,238,090 $ 320,573 $ 12,496,867 23. NET PROFIT Net Profit a. Interest income For the Year Ended December 31 2022 2021 Interest income Bank deposits $ 6,682 $ 4,591 Financial assets at amortized cost 10,832 7,010 Repurchase agreements collateralized by bonds - 70 Loans to related parties 9,927 7,672 Others 56 84 $ 27,497 $ 19,427	December 31, 2022 December 31, 2021 January 1, 2021 Notes receivable (Note 10) $ 1,286 $ 175 $ 5 Trade receivables (Note 10) $ 1,939,504 $ 1,829,594 $ 1,981,590 Trade receivables from related parties (Note 10) $ 145,838 $ 127,773 $ 136,585 Contract liabilities - current Sale of goods $ 747 $ 17,285 $ 21,440 b. Disaggregation of revenue Reportable Segments Nutritious Foods Cooking Products Others Total For the year ended December 31, 2022 Type of goods or services Sale of goods $ 9,521,296 $ 2,277,017 $ 370,117 $ 12,168,430 For the year ended December 31, 2021 Type of goods or services Sale of goods $ 9,938,204 $ 2,238,090 $ 320,573 $ 12,496,867 23. NET PROFIT Net Profit a. Interest income For the Year Ended December 31 2022 2021 Interest income Bank deposits $ 6,682 $ 4,591 Financial assets at amortized cost 10,832 7,010 Repurchase agreements collateralized by bonds - 70 Loans to related parties 9,927 7,672 Others 56 84 $ 27,497 $ 19,427	December 31, 2022 December 31, 2021 January 1, 2021 Notes receivable (Note 10) $ 1,286 $ 175 $ 5 Trade receivables (Note 10) $ 1,939,504 $ 1,829,594 $ 1,981,590 Trade receivables from related parties (Note 10) $ 145,838 $ 127,773 $ 136,585 Contract liabilities - current Sale of goods $ 747 $ 17,285 $ 21,440 b. Disaggregation of revenue Reportable Segments Nutritious Foods Cooking Products Others Total For the year ended December 31, 2022 Type of goods or services Sale of goods $ 9,521,296 $ 2,277,017 $ 370,117 $ 12,168,430 For the year ended December 31, 2021 Type of goods or services Sale of goods $ 9,938,204 $ 2,238,090 $ 320,573 $ 12,496,867 23. NET PROFIT Net Profit a. Interest income For the Year Ended December 31 2022 2021 Interest income Bank deposits $ 6,682 $ 4,591 Financial assets at amortized cost 10,832 7,010 Repurchase agreements collateralized by bonds - 70 Loans to related parties 9,927 7,672 Others 56 84 $ 27,497 $ 19,427	December 31, 2022 December 31, 2021 January 1, 2021 Notes receivable (Note 10) $ 1,286 $ 175 $ 5 Trade receivables (Note 10) $ 1,939,504 $ 1,829,594 $ 1,981,590 Trade receivables from related parties (Note 10) $ 145,838 $ 127,773 $ 136,585 Contract liabilities - current Sale of goods $ 747 $ 17,285 $ 21,440 b. Disaggregation of revenue Reportable Segments Nutritious Foods Cooking Products Others Total For the year ended December 31, 2022 Type of goods or services Sale of goods $ 9,521,296 $ 2,277,017 $ 370,117 $ 12,168,430 For the year ended December 31, 2021 Type of goods or services Sale of goods $ 9,938,204 $ 2,238,090 $ 320,573 $ 12,496,867 23. NET PROFIT Net Profit a. Interest income For the Year Ended December 31 2022 2021 Interest income Bank deposits $ 6,682 $ 4,591 Financial assets at amortized cost 10,832 7,010 Repurchase agreements collateralized by bonds - 70 Loans to related parties 9,927 7,672 Others 56 84 $ 27,497 $ 19,427	December 31, 2022 December 31, 2021 January 1, 2021 Notes receivable (Note 10) $ 1,286 $ 175 $ 5 Trade receivables (Note 10) $ 1,939,504 $ 1,829,594 $ 1,981,590 Trade receivables from related parties (Note 10) $ 145,838 $ 127,773 $ 136,585 Contract liabilities - current Sale of goods $ 747 $ 17,285 $ 21,440 b. Disaggregation of revenue Reportable Segments Nutritious Foods Cooking Products Others Total For the year ended December 31, 2022 Type of goods or services Sale of goods $ 9,521,296 $ 2,277,017 $ 370,117 $ 12,168,430 For the year ended December 31, 2021 Type of goods or services Sale of goods $ 9,938,204 $ 2,238,090 $ 320,573 $ 12,496,867 23. NET PROFIT Net Profit a. Interest income For the Year Ended December 31 2022 2021 Interest income Bank deposits $ 6,682 $ 4,591 Financial assets at amortized cost 10,832 7,010 Repurchase agreements collateralized by bonds - 70 Loans to related parties 9,927 7,672 Others 56 84 $ 27,497 $ 19,427
			2022 $ 6,682 10,832 - 9,927 56 $ 27,497	2021 $ 4,591 7,010 70 7,672 84 $ 19,427

• 38 -

b. Other income

Royalties Dividends	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 9,308 4,434 $ 13,742	2021 $ 9,032 1,471 $ 10,503

c. Other gains and losses

Fair value changes of financial assets and financial liabilities Net loss on financial assets mandatorily classified as at FVTPL Net foreign exchange gains Net loss on disposal of property, plant and equipment Others d. Finance costs Interest on lease liabilities e. Impairment losses recognized Trade receivables Inventories (included in operating costs) f. Depreciation and amortization An analysis of depreciation by function Operating costs Operating expenses	For the Year Ended	For the Year Ended	December 31
	2022 $ (69,486) 31,355 (1,676) 10,216 $ (29,591) For the Year Ended		2021 $ (35,432) 3,029 (15,247) 35,262 $ (12,388) December 31
	2022 $ 1,375 For the Year Ended		2021 843 December 31
	2022 $ 1,858 4,283 $ 6,141 For the Year Ended		2021 $ 419 9,508 $ 9,927 December 31
		2022 $ 155,471 56,556 $ 212,027	2021 $ 169,049 57,580 $ 226,629 (Continued)

• 39 -

An analysis of amortization by function Operating costs Operating expenses	**For the Year Ended **	**For the Year Ended **	**December 31 **
		2022 $ 10,305 10,680 $ 20,985	2021 $ 8,987 6,391 $ 15,378 (Concluded)

• g. Employee benefits expense

Post-employment benefits Defined contribution plans Defined benefit plans (see Note 20) Other employee benefits Total employee benefits expense An analysis of employee benefits expense by function Operating costs Operating expenses	**For the Year Ended December 31 **	**For the Year Ended December 31 **	**For the Year Ended December 31 **
		2022 $ 39,067 2,501 41,568 1,107,866 $ 1,149,434 $ 516,604 632,830 $ 1,149,434	2021 $ 36,693 23,512 60,205 1,154,969 $ 1,215,174 $ 534,097 681,077 $ 1,215,174

• h. Compensation of employees and remuneration of directors

The Company accrued compensation of employees and remuneration of directors at the rates of no less than 0.75% and no higher than 0.5%, respectively, of net profit before income tax, compensation of employees, and remuneration of directors. The compensation of employees and remuneration of directors for the years ended December 31, 2022 and 2021, which were approved by the Company’s board of directors on March 15, 2022 and March 21, 2021, respectively, were as follows:

Accrual rate

Compensation of employees Remuneration of directors Amount	**For the Year Ended December 31 **
	2022 2021 1.30% 1.28% 0.55% 0.55%

Compensation of employees Remuneration of directors	For the Year Ended December 31	For the Year Ended December 31
	2022 Cash $ 19,470 8,237	2021
		Cash $ 38,903 16,716

• 40 -

If there is a change in the amounts after the annual financial statements are authorized for issue, the differences are recorded as a change in the accounting estimate.

There was no difference between the actual amounts of compensation of employees and remuneration of directors paid and the amounts recognized in the financial statements for the years ended December 31, 2021 and 2020.

Information on the compensation of employees and remuneration of directors resolved by the Company’s board of directors in 2022 and 2021 is available at the Market Observation Post System website of the Taiwan Stock Exchange.

• i. Gain or loss on foreign currency exchange

Foreign exchange gains Foreign exchange losses Net gain	**For the Year Ended December 31 **	**For the Year Ended December 31 **	**For the Year Ended December 31 **
		2022 $ 95,017 (63,662) $ 31,355	2021 $ 33,208 (30,179) $ 3,029

24. INCOME TAXES

• a. Income tax recognized in profit or loss

Major components of income tax expense are as follows:

For the Year Ended December 31 2022 2021 Current tax In respect of the current year $ 430,693 $ 550,479 Income tax on unappropriated earnings 23,692 29,239 Adjustments for prior years (7,307) (7,779) 447,078 571,939 Deferred tax In respect of the current year (191,172) (44,001) Income tax expense recognized in profit or loss $ 255,906 $ 527,938 A reconciliation of accounting profit and income tax expenses is as follows: For the Year Ended December 31 2022 2021 Profit before tax from continuing operations $ 1,470,004 $ 2,984,566 Income tax expense calculated at the statutory rate (20%) $ 294,001 $ 596,913 Nondeductible expenses in determining taxable income 25,851 23,524 Tax-exempt income (80,331) (113,959) Income tax on unappropriated earnings 23,692 29,239 Adjustments for prior years’ tax (7,307) (7,779) Income tax expense recognized in profit or loss $ 255,906 $ 527,938	For the Year Ended	For the Year Ended	For the Year Ended	December 31
				2021 $ 550,479 29,239 (7,779) 571,939 (44,001) $ 527,938 December 31
		2022 $ 1,470,004 $ 294,001 25,851 (80,331) 23,692 (7,307) $ 255,906	2021 $ 2,984,566 $ 596,913 23,524 (113,959) 29,239 (7,779) $ 527,938

• 41 -

• b. Income tax recognized in other comprehensive income

Deferred tax In respect of the current year Translation of foreign operations Remeasurement of defined benefit plans Fair value changes of financial assets at FVTOCI Total income tax recognized in other comprehensive income	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 30,920 9,846 (8) $ 40,758	2021 $ (10,163) 1,190 (3) $ (8,976)

c. Current tax liabilities

Current tax liabilities Income tax payable		December 31	December 31
		2022 $ 174,665	2021 $ 282,639

d. Deferred tax assets and liabilities

The movements of deferred tax assets and deferred tax liabilities were as follows:

For the year ended December 31, 2022

				Recognized in	Recognized in	Recognized in
					Other
		Recognized in		Comprehensive
	Opening Balance	Profit or Loss			Income		Closing Balance
Deferred tax assets
Temporary differences
Investments accounted for using the equity method	$ 72,841	$	6,048	$		-	$ 78,889
Exchange differences on translation of the financial
statements of foreign operations	153,213		-		(30,920 )		122,293
Defined benefit plans	69,251		(377 )		(9,674 )		59,200
Deferred sales returns and allowances	3,775		(2,273 )			-	1,502
Allowance for inventory loss	3,526		856			-	4,382
FVTOCI financial assets	43,872		-			8	43,880
Others	209		1,972			-	2,181
	$ 346,687	$	6,226	$	(40,586)		$ 312,327
Deferred tax liabilities
Temporary differences
Investments accounted for using the equity method	$ 282,867	$	(182,913 )	$		-	$ 99,954
Reserve for land value increment tax	33,685		-			-	33,685
Defined benefit plans	1,236		-		172		1,408
Others	2,033		(2,033)			-	-
	$ 319,821	$	(184,946)	$	172		$ 135,047

• 42 -

For the year ended December 31, 2021

			Recognized in	Recognized in
				Other
		Recognized in	Comprehensive
	Opening Balance	Profit or Loss		Income	Closing Balance
Deferred tax assets
Temporary differences
Investments accounted for using the equity method	$ 49,881	$ 22,960	$	-	$ 72,841
Exchange differences on translation of the financial
statements of foreign operations	143,050	-		10,163	153,213
Defined benefit plans	68,829	163		259	69,251
Deferred sales returns and allowances	3,916	(141 )		-	3,775
Allowance for inventory loss	1,624	1,902		-	3,526
FVTOCI financial assets	43,869	-		3	43,872
Others	10,130	(9,921)		-	209
	$ 321,299	$ 14,963	$	10,425	$ 346,687
Deferred tax liabilities
Temporary differences
Investments accounted for using the equity method	$ 307,620	$ (24,753 )	$	-	$ 282,867
Reserve for land value increment tax	33,685	-		-	33,685
Defined benefit plans	-	(213 )		1,449	1,236
Others	6,105	(4,072)		-	2,033
	$ 347,410	$ (29,038)	$	1,449	$ 319,821

e. Income tax assessments

The income tax returns of the Company through 2020 have been assessed by the tax authorities.

25. EARNINGS PER SHARE

Basic earnings per share Diluted earnings per share	For	Unit: NT$ Per Share the Year Ended December 31	Unit: NT$ Per Share the Year Ended December 31
		2022 $ 1.34 $ 1.34	2021 $ 2.70 $ 2.70

The earnings and weighted average number of ordinary shares outstanding in the computation of earnings per share were as follows:

Net Profit for the Year

Earnings used in the computation of basic earnings per share	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 1,214,098	2021 $ 2,456,628

• 43 -

The weighted average number of ordinary shares outstanding (in thousands of shares) was as follows:

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	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 908,420 690 909,110	2021 908,420 968 909,388

The Company may settle compensation paid to employees in cash or shares; therefore, the Company assumes that the entire amount of the compensation will 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, as the effect is dilutive. Such dilutive effect of the potential shares is included in the computation of diluted earnings per share until the number of shares to be distributed to employees is resolved in the following year.

26. CAPITAL MANAGEMENT

The Company’s capital management objective is to ensure financial resources are available and operating plans are in place for working capital, capital expenditures, research and development expenses, refund liabilities and dividend disbursement, etc. in the next twelve months. The Company manages its capital to ensure that entities in the Company and subsidiaries will be able to continue as going concerns while maximizing the return to shareholders through the optimization of the debt and equity balance.

27. FINANCIAL INSTRUMENTS

• a. Fair value of financial instruments measured at fair value on a recurring basis

• 1) Fair value hierarchy

December 31, 2022 Financial assets at FVTPL Listed shares Unlisted shares Mutual funds Financial assets at FVTOCI Investments in equity instruments Listed shares Unlisted shares	Level 1 $ 22,496 - 962,351 $ 984,847 $ 165,135 - $ 165,135	Level 2 $ - - - $ - $ - - $ -	Level 3 $ - 2,059 - $ 2,059 $ - 15,549 $ 15,549	Total $ 22,496 2,059 962,351 $ 986,906 $ 165,135 15,549 $ 180,684

• 44 -

December 31, 2021

Financial assets at FVTPL Unlisted shares Mutual funds Note cash Financial assets at FVTOCI Investments in equity instruments Listed shares and emerging market shares Unlisted shares	Level 1 $ - 944,978 - $ 944,978 $ 116,321 - $ 116,321	Level 2 $ - - 28,239 $ 28,239 $ - - $ -	Level 3 $ 2,244 - - $ 2,244 $ - 17,129 $ 17,129	Total $ 2,244 944,978 28,239
				$ 975,461
				$ 116,321 17,129
				$ 133,450

There were no transfers between Levels 1 and 2 for the years ended December 31, 2022 and 2021.

• 2) Reconciliation of Level 3 fair value measurements of financial instruments

For the year ended December 31, 2022

Financial Assets Balance at January 1, 2021 Recognized in profit or loss (included in other gains and losses) Recognized in other comprehensive income (included in unrealized gain (loss) on financial assets at FVTOCI) Balance at December 31, 2021 Recognized in other gains and losses - unrealized	Financial Assets at FVTPL Equity Instruments $ 2,244 (185) - $ 2,059 $ (185)	Financial Assets at FVTOCI Equity Instruments $ 17,129 - (1,580) $ 15,549	Total $ 19,373 (185) (1,580) $ 17,608 $ (185)

• 45 -

For the year ended December 31, 2021

Financial Assets Balance at January 1, 2021 Recognized in profit or loss (included in other gains and losses) Recognized in other comprehensive income (included in unrealized gain (loss) on financial assets at FVTOCI) Balance at December 31, 2021 Recognized in other gains and losses - unrealized	Financial Assets at FVTPL Equity Instruments $ 1,894 350 - $ 2,244 $ 350	Financial Assets at FVTOCI Equity Instruments $ 14,918 - 2,211 $ 17,129	Total $ 16,812 350 2,211 $ 19,373 $ 350

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

Financial Instrument Note cash Discounted cash flow.

Valuation Technique and Inputs

Future cash flows are discounted at a rate that reflects current borrowing interest rates of the bond issuers at the end of the year.

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

The valuation techniques of unlisted shares with no active market are mainly applicable for market and asset valuation methods.

The market method is mainly used to value the fair value of investment objects’ market prices and environments.

The asset method is mainly utilized to value the fair value of investment objects’ net asset values

• b. Categories of financial instruments

Financial assets Financial assets at FVTPL Mandatorily classified as at FVTPL Financial assets at amortized cost (1) Financial assets at FVTOCI Equity instruments Financial liabilities Financial liabilities at amortized cost (2)	**December 31 **
	2022 2021 $ 986,906 $ 975,461 4,125,505 4,816,137 180,684 133,450 900,833 838,589

• 46 -

• 1) The balances include financial assets at amortized cost, which comprise cash and cash equivalents, notes receivable, trade receivables, trade receivables from related parties, other receivables and other receivables from related parties and refundable deposits.

• 2) The balances include financial liabilities measured at amortized cost, which comprise notes payable, trade payables, trade payables from related parties, payables for purchases of equipment and guarantee deposits.

c. Financial risk management objectives and policies

The Company’s major financial instruments include cash and cash equivalents, equity and debt investments, mutual funds, trade receivables and trade payables. The Company’s Financial Department provides services to the business, coordinates access to financial markets, monitors and manages the financial risks relating to the operations of the Company through internal risk reports which analyze exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

1) Market risk

The Company’s activities exposed it primarily to the financial risks of changes in foreign currency exchange rates (see (a) below) and interest rates (see (b) below).

a) Foreign currency risk

The Company’s foreign currency risk arises from its foreign currency monetary assets and liabilities. The Company watches out for the fluctuation of market exchange rates, and takes appropriate actions to manage the exchange rate risk.

The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are set out in Note 30.

Sensitivity analysis

The Company was mainly exposed to the RMB, USD, EUR, AUD, CHF and SGD.

The following table details the Company’s sensitivity to a 3% increase or decrease in New Taiwan dollars (the functional currency) against the relevant foreign currencies. A change of 3% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management’s assessment of the reasonably possible change in foreign exchange rates. The sensitivity analysis used the outstanding foreign currency denominated monetary items at the end of the reporting period and assumed the exchange rates at the end of the reporting period changed by 3% increase or decrease. The amount below indicates an increase (decrease) in pre-tax profit associated with the New Taiwan dollar weakening 3% against the relevant currency. For a 3% strengthening of New Taiwan dollars against the relevant currency, there would be an equal and opposite impact on pre-tax profit and the balances below would be negative.

Profit or loss	RMB Impact For the Year Ended December 31 2022 2021 $ 29,547 (i) $ 29,119 (i)	USD Impact
		For the Year Ended December 31
		2022 2021 $ 7,557 (ii) $ (1,403) (ii)

• 47 -

Profit or loss Profit or loss	EUR Impact For the Year Ended December 31 2022 2021 $ 1,962 (iii) $ (2,259) (iii) CHF Impact For the Year Ended December 31 2022 2021 $ - (v) $ 543 (v)	AUD Impact
		For the Year Ended **December 31 **
		2022 2021 $ 2,572 (iv) $ 113 (iv) SGD Impact
		For the Year Ended **December 31 **
		2022 2021 $ 266 (vi) $ - (vi)

• i. This was mainly attributable to the exposure of outstanding RMB bank deposits and receivables which were not hedged at the end of the reporting period.

• ii. This was mainly attributable to the exposure of outstanding USD bank deposits, receivables and payables which were not hedged at the end of the reporting period.

• iii. This was mainly attributable to the exposure of outstanding EUR bank deposits, receivables and payables which were not hedged at the end of the reporting period.

• iv. This was mainly attributable to the exposure of bank deposits in AUD which were not hedged at the end of the reporting period.

• v. This was mainly attributable to the exposure of outstanding CHF bank deposits and receivables which were not hedged at the end of the reporting period.

• vi. This was mainly attributable to the exposure of bank deposits in SGD which were not hedged at the end of the reporting period.

• b) Interest rate risk

The carrying amounts of the Company’s financial assets and financial liabilities with exposure to interest rates at the end of the reporting periods were as follows.

Fair value interest rate risk Financial assets Financial liabilities Cash flow interest rate risk Financial assets Sensitivity analysis	December 31
	2022 2021 $ 556,160 $ 742,732 118,649 140,580 320,100 879,100

The sensitivity analyses below were determined based on the Company’s exposure to interest rates for non-derivative instruments at the end of the reporting period. For floating rate assets, the analysis was prepared assuming the amount of the asset outstanding at the end of the reporting period was outstanding for the whole year. A 1% basis point increase or decrease was used when reporting interest rate risk internally to key management personnel and represents management’s assessment of the reasonably possible change in interest rates.

• 48 -

If interest rates had been 1% higher/lower and all other variables were held constant, the Company’s pre-tax profit for the years ended December 31, 2022 and 2021 would have increased/decreased by $3,201 thousand and $8,791 thousand, respectively.

c) Other price risk

The Company was exposed to equity price risk due to its investments in listed equity securities and mutual funds. The Company has appointed a special team to monitor the price risk and will consider hedging the risk exposure should the need arise.

Sensitivity analysis

The sensitivity analyses below were determined based on the exposure to equity price risks at the end of the reporting period.

If equity prices had been 1% higher/lower, pre-tax profit for the years ended December 31,2022 and 2021 would have increased/decreased by $9,869 thousand and $9,755 thousand, respectively, as a result of the changes in fair value of financial assets at FVTPL, and the pre-tax other comprehensive income for the years ended December 31, 2022 and 2021 would have increased/decreased by $1,807 thousand and $1,335 thousand, respectively, as a result of the changes in fair value of financial assets at FVTOCI.

2) Credit risk

Credit risk refers to the risk that counterparty will default on its contractual obligations resulting in financial loss to the Company. As at the end of the reporting period, the Company’s maximum exposure to credit risk which will cause a financial loss to the Company due to failure of counterparties to discharge an obligation and due to financial guarantees provided by the Company could arise from:

• a) The carrying amount of the respective recognized financial assets as stated in the balance sheets; and

• b) The amount of contingent liabilities in relation to financial guarantees issued by the Company.

In order to minimize credit risk, management of the Company has delegated a team responsible for determining credit limits, credit approvals and other monitoring procedures to ensure that follow-up action is taken to recover overdue debts. In addition, the Company reviews the recoverable amount of each individual trade receivable at the end of the reporting period to ensure that adequate allowances are made for irrecoverable amounts.

The Company’s concentration of credit risk of 69% and 74% in total trade receivables as of December 31, 2022 and 2021, was related to the Company’s four largest customers.

3) Liquidity risk

The Company manages liquidity risk by monitoring and maintaining a level of cash and cash equivalents deemed adequate to finance the Company’s operations and mitigate the effects of fluctuations in cash flows. In addition, management monitors the utilization of bank borrowings and ensures compliance with loan covenants.

The Company relies on bank borrowings as a significant source of liquidity. As of December 31, 2022 and 2021, the Company had available unutilized bank loan facilities in the amounts of $2,028,405 thousand and $1,977,047 thousand, respectively.

• 49 -

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

The following table details the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The table has been drawn up based on the undiscounted cash flows of financial liabilities from the earliest date on which the Company can be required to pay. The table included both interest and principal cash flows. Specifically, bank loans with a repayment on demand clause were included in the earliest time band regardless of the probability of the banks choosing to exercise their rights. The maturity dates for other non-derivative financial liabilities were based on the agreed repayment dates.

To the extent that interest flows are at floating rates, the undiscounted amount was derived from interest rate curve at the end of the reporting period.

December 31, 2022

On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year Non-interest bearing $ 283,496 $ 569,972 $ 47,215 Lease liabilities 2,985 5,797 25,315 Contract liabilities 249 498 - $ 286,730 $ 576,267 $ 72,530 December 31, 2021 On Demand or Less than 1 Month 1-3 Months 3 Months to 1 Year Non-interest bearing $ 263,595 $ 525,427 $ 49,417 Lease liabilities 2,811 5,540 24,933 Contract liabilities 5,762 11,523 - $ 272,168 $ 542,490 $ 74,350

1-5 Years $ 150 86,872 - $ 87,022 1-5 Years $ 150 110,708 - $ 110,858

The amount included above for variable interest rate instruments for both non-derivative financial assets and liabilities was subject to change if changes in variable interest rates differ from those estimates of interest rates determined at the end of the reporting period.

• 50 -

28. TRANSACTIONS WITH RELATED PARTIES

The transactions between the Company and its related parties, other than those disclosed in other notes, are summarized as follows:

• a. Related parties and relationships

Name of Related Party Standard Dairy Products Standard Beverage Dermalab S.A. (“Dermalab”) Standard Foods (China) Co., Ltd. (“Chain Standard Foods”) Standard Foods (Xiamen) Co., Ltd. (“Xiamen Standard Foods”) Shanghai Le Ben Tuo Health Technology Co., Ltd. GeneFerm Biotechnology Co., Ltd. (“GeneFerm”)	Relationship with the Company
	Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary Subsidiary The Company is one of the directors

• b. Sales of goods

Line Items Related Party Category/Name Sales Subsidiaries Standard Dairy Products GeneFerm Others	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 1,510,650 36,465 - $ 1,547,115	2021 $ 1,403,341 24,683 105 $ 1,428,129

Sales to related parties were conducted on normal commercial terms.

• c. Purchases of goods

Related Party Category/Name Subsidiaries Standard Dairy Products The Company is one of the directors GeneFerm	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
		2022 $ 1,159,395 102,636 $ 1,262,031	2021 $ 858,375 76,368 $ 934,743

Purchases from related parties were conducted on normal commercial terms.

• 51 -

• d. Receivables from related parties

Line Items Related Party Category/Name Trade receivables Subsidiaries Standard Dairy Products The Company is one of the directors GeneFerm Other receivables Subsidiaries Standard Dairy Products Standard Beverage Dermalab China Standard Foods Xiamen Standard Foods		December 31	December 31
		2022 $ 141,101 4,737 $ 145,838 $ 3,269 15,117 - 443,448 443,448 $ 905,282	2021 $ 120,483 7,290 $ 127,773 $ 4,087 10,416 18,105 218,403 655,209 $ 906,220

The outstanding receivables from related parties are unsecured. For the years ended December 31, 2022 and 2021, no impairment loss was recognized on receivables from related parties.

• e. Payables to related parties

Line Items Related Party Category/Name Trade payables The Company is one of the directors GeneFerm The outstanding payables from related parties are unsecured.		December 31	December 31
		2022 $ 19,633	2021 $ 19,472

• f. Loans to related parties

Related Party Category/Name Standard Beverage Dermalab China Standard Foods Xiamen Standard Foods		December 31	December 31
		2022 $ 15,000 - 440,940 440,940 $ 896,880	2021 $ 10,300 18,105 217,355 652,065 $ 897,825

• 52 -

Interest expenses

g. h. i.	Related Party Category/Name Standard Beverage Dermalab China Standard Foods Xiamen Standard Foods Endorsements and guarantees Endorsements and guarantees provided by the Company Related Party Category/Name Subsidiaries Standard Beverage Amount endorsed Amount utilized Other transactions with related parties Line Items Related Party Category/Name Royalty revenue Subsidiaries Standard Dairy Products Service revenue Subsidiaries Standard Beverage Remuneration of key management personnel Short-term employee benefits Post-employment benefits	For the Year Ended December 31	For the Year Ended December 31	For the Year Ended December 31
			2022 2021 $ 189 $ 151 186 443 3,650 2,126 5,902 4,952 $ 9,927 $ 7,672 December 31
		2022 2021 $ 92,130 $ 143,040 - - For the Year Ended December 31
		2022 2021 $ 9,308 $ 9,032 $ 1,320 $ 1,320 For the Year Ended December 31
			2022 $ 21,101 315 $ 21,416	2021 $ 28,036 241 $ 28,277

The remuneration of directors and key executives was determined by the remuneration committee based on the performance of individuals and market trends.

• 53 -

29. SIGNIFICANT CONTINGENT LIABILITIES AND UNRECOGNIZED COMMITMENTS

In addition to those disclosed in other notes, significant commitments and contingencies of the Company as of December 31, 2022 were as follows:

• a. The Company has entered into a license agreement with The Quaker Oats Company (“Quaker”) for a period ending July 11, 2034. The agreement provides that the Company may use Quaker’s trademark, and process, manufacture, market and sell Quaker baby cereal, oatmeal, fruit cereal, ready-to-eat cereal, sesame paste, milk powder and other cereal products in the ROC. In consideration of the above, the Company shall pay Quaker royalties at an agreed percentage of net sales (as defined).

• b. Unused letters of credit of approximately US$512 thousand.

• c. Unrecognized commitments for acquisition of property, plant and equipment of approximately $130,647 thousand.

• d. Unrecognized commitments for acquiring approximately 55,800 tons of colostrum from dairymen.

30. SIGNIFICANT ASSETS AND LIABILITIES DENOMINATED IN FOREIGN CURRENCIES

The significant assets and liabilities denominated in foreign currencies other than functional currency of the Company and the exchange rates between foreign currencies and functional currency were as follows:

December 31, 2022 Foreign Currency Exchange Rate Financial assets Monetary items USD $ 10,584 30.71 (USD:NTD) EUR 2,042 32.72 (EUR:NTD) RMB 223,367 4.41 (RMB:NTD) AUD 4,116 20.83 (AUD:NTD) SGD 387 22.88 (SGD:NTD) Non-monetary items Investments accounted for using the equity method USD 300 30.71 (USD:NTD) RMB 1,889,307 4.41 (RMB:NTD) SGD 14 22.88 (SGD:NTD) Financial liabilities Monetary items USD 2,381 30.71 (USD:NTD) EUR 43 32.72 (EUR:NTD)

Carrying Amount $ 325,034 66,803 984,913 85,733 8,851 $ 1,471,334 $ 9,213 8,330,334 320 $ 8,339,867 $ 73,123 1,406 $ 74,529

• 54 -

December 31, 2021

Foreign Currency Exchange Rate Financial assets Monetary items USD $ 8,949 27.68 (USD:NTD) EUR 450 31.32 (EUR:NTD) RMB 223,285 4.35 (RMB:NTD) AUD 187 20.08 (AUD:NTD) CHF 600 30.18 (CHF:NTD) Non-monetary items Investments accounted for using the equity method USD 300 27.68 (USD:NTD) RMB 2,097,347 4.35 (RMB:NTD) Financial liabilities Monetary items USD 10,639 27.68 (USD:NTD) EUR 2,854 31.32 (EUR:NTD)

Carrying Amount $ 247,707 14,104 970,640 3,754 18,105 $ 1,254,310 $ 8,304 9,117,457 $ 9,125,761 $ 294,489 89,390 $ 383,879

The significant realized and unrealized foreign exchange gains (losses) were as follows:

Foreign Currency USD RMB EUR AUD CHF SGD Others	**For the Year Ended December 31 **	**For the Year Ended December 31 **
	2022 Exchange Rate Net Foreign Exchange Gains (Losses) 29.81 (USD:NTD) $ 21,227 4.43 (RMB:NTD) 13,735 31.36 (EUR:NTD) (3,564) 20.67 (AUD:NTD) (516) 31.20 (CHF:NTD) 449 21.62 (SGD:NTD) (3) 27 $ 31,355	2021
		Exchange Rate Net Foreign Exchange Gains (Losses) 28.01 (USD:NTD) $ 8,365 4.34 (RMB:NTD) (6,392) 33.16 (EUR:NTD) 3,471 21.06 (AUD:NTD) 449 30.64 (CHF:NTD) (3,105) 20.85 (SGD:NTD) (16) 257 $ 3,029

• 55 -

31. SEPARATELY DISCLOSED ITEMS

• a. Information about significant transactions and investees:

• 1) Financings provided: (Table 1)

• 2) Endorsement/guarantee provided: (Table 2)

• 3) Marketable securities held (excluding investments in subsidiaries): (Table 3)

• 4) Marketable securities acquired and disposed of at costs or prices of at least NT$300 million or 20% of the paid-in capital: None.

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

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

• 7) Total purchases from or sales to related parties amounting to at least NT$100 million or 20% of the paid-in capital: (Table 4).

• 8) Receivables from related parties amounting to at least NT$100 million or 20% of the paid-in capital: (Table 5).

• 9) Trading in derivative instruments: None.

• b. Information on reinvestments (excluding investees in mainland China): (Table 6).

• c. Information on investment in mainland China

• 1) The name of the investee in mainland China, the main businesses and products, its issued capital, method of investment, information on inflow or outflow of capital, percentage of ownership, income (losses) of the investee, share of profits/losses of investee, ending balance, amount received as dividends from the investee, and the limitation on investee: (Table 7)

• 2) Significant direct or indirect transactions with the investee, its prices and terms of payment, unrealized gain or loss: None.

• d. Information of major shareholders: List all shareholders with ownership of 5% or greater showing the name of the shareholder, the number of shares owned, and percentage of ownership of each shareholder (Table 8)

• 56 -

TABLE 1

STANDARD FOODS CORPORATION

FINANCING PROVIDED TO OTHERS FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

No. (Note 1)	Lender	Borrower	Financial Statement Account	Related Parties	Highest Balance for the Period	Ending Balance	Actual Borrowing Amount	Interest Rate	Nature of Financing (Note 2)	Business Transaction Amounts	Reasons for Short-term Financing	Allowance for Impairment Loss	Collateral	Collateral	Financing Limit for Each Borrower	Aggregate Financing Limits	Note
													Item	Value
0	Standard Foods Corporation	Dermalab S.A. Standard Foods (China) Co., Ltd. Standard Foods (Xiamen) Co., Ltd. Standard Beverage Company Limited	Financing receivables - related parties Financing receivables - related parties Financing receivables - related parties Financing receivables - related parties	Y Y Y Y	$ 18,561 448,880 676,380 50,000	$ - 440,940 440,940 50,000	$ - 440,940 440,940 15,000	1.000% 1.200% 1.200% 1.750%	b. b. b. b.	$ - - - -	Need for operation Need for operation Need for operation Need for operation	$ - - - -	- - - -	$ - - - -	$ 6,934,510 (Note 3) 3,467,255 (Note 4) 3,467,255 (Note 4) 3,467,255 (Note 4)	$ 6,934,510 (Note 3) 6,934,510 (Note 5) 6,934,510 (Note 5) 6,934,510 (Note 5)	Note 11 Note 11 Note 11 Note 11
1	Standard Investment (China) Co., Ltd.	Shanghai Dermalab Corporation Shanghai Le Ben Tuo Health Technology Co., Ltd. Standard Foods (Xiamen) Co., Ltd. Standard Foods (China) Co., Ltd.	Financing receivables - related parties Financing receivables - related parties Financing receivables - related parties Financing receivables - related parties	Y Y Y Y	224,440 269,328 673,320 538,656	176,376 264,564 440,940 440,940	114,181 197,069 380,566 272,153	1.000% 1.000% 1.000% 1.000%	b. b. b. b.	- - - -	Need for operation Need for operation Need for operation Need for operation	- - - -	- - - -	- - - -	1,653,661 (Note 6) 1,653,661 (Note 6) 1,653,661 (Note 6) 1,653,661 (Note 6)	1,653,661 (Note 6) 1,653,661 (Note 6) 1,653,661 (Note 6) 1,653,661 (Note 6)	Note 11 Note 11 Note 11 Note 11
2	Shanghai Standard Foods Co., Ltd.	Standard Investment (China) Co., Ltd. Standard Foods (Xiamen) Co., Ltd. Standard Foods (China) Co., Ltd.	Financing receivables - related parties Financing receivables - related parties Financing receivables - related parties	Y Y Y	650,876 473,466 224,440	639,363 220,470 220,470	145,224 - -	1.000% 1.000% 1.000%	b. b. b.	- - -	Need for operation Need for operation Need for operation	- - -	- - -	- - -	1,305,236 (Note 7) 1,305,236 (Note 7) 1,305,236 (Note 7)	1,305,236 (Note 7) 1,305,236 (Note 7) 1,305,236 (Note 7)	Note 11 Note 11 Note 11
3	Shanghai Le Ben De Health Technology Co., Ltd.	Standard Investment (China) Co., Ltd.	Financing receivables - related parties	Y	11,273	5,732	5,732	1.000%	b.	-	Need for operation	-	-	-	12,016 (Note 8)	12,016 (Note 8)	Note 11
4	Shanghai Le Ho Industrial Co., Ltd.	Standard Investment (China) Co., Ltd.	Financing receivables - related parties	Y	35,910	35,275	32,158	1.000%	b.	-	Need for operation	-	-	-	186,526 (Note 9)	186,526 (Note 9)	Note 11
5	Shanghai Le Min Industrial Co., Ltd.	Standard Investment (China) Co., Ltd.	Financing receivables - related parties	Y	35,910	35,275	22,426	1.000%	b.	-	Need for operation	-	-	-	116,688 (Note 10)	116,688 (Note 10)	Note 11

Note 1: “0” for the Company, subsidiaries are numbered from “1”.

Note 2: Reasons for financing are as follows:

• a. Need for operation.

• b. Need for short-term financing.

Note 3: The total amount shall not exceed 40% of net value of Standard Foods Corporation, which was calculated to be $6,934,510 thousand (the net value per financial statements of $17,336,274 thousand x 40% as of September 30, 2022).

Note 4: The total amount shall not exceed 20% of net value of Standard Foods Corporation, which was calculated to be $3,467,255 thousand (the net value per financial statements of $17,336,274 thousand x 20% as of September 30, 2022).

• Note 5: The total amount shall not exceed 40% of net value of Standard Foods Corporation, which was calculated to be $6,934,510 thousand (the net value per financial statements of $17,336,274 thousand x 40% as of September 30, 2022).

• Note 6: The total amount shall not exceed 40% of net value of Standard Investment (China) Co., Ltd., which was calculated to be $1,653,661 thousand (the net value per financial statements of $4,134,153 thousand x 40% as of September 30, 2022).

• Note 7: The total amount shall not exceed 40% of net value of Shanghai Standard Foods Co., Ltd., which was calculated to be $1,305,236 thousand (the net value per financial statements of $3,263,089 thousand x 40% as of September 30, 2022).

• Note 8: The total amount shall not exceed 40% of net value of Shanghai Le Ben De Health Technology Co., Ltd., which was calculated to be $12,016 thousand (the net value per financial statements of $30,039 thousand x 40% as of September 30, 2022).

Note 9: The total amount shall not exceed 40% of net value of Shanghai Le Ho Industrial Co., Ltd., which was calculated to be $186,526 thousand (the net value per financial statements of $466,314 thousand x 40% as of September 30, 2022).

Note 10: The total amount shall not exceed 40% of net value of Shanghai Le Min Industrial Co., Ltd., which was calculated to be $116,688 thousand (the net value per financial statements of $291,719 thousand x 40% as of September 30, 2022).

Note 11: The amounts presented above were eliminated upon consolidation.

• 57 -

TABLE 2

STANDARD FOODS CORPORATION

ENDORSEMENTS/GUARANTEES PROVIDED FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

No. (Note 1)	Endorsement/Guarantee Provider	Guaranteed Party	Guaranteed Party	Limits on Endorsement/ Guarantee Amount Provided to Each Guaranteed Party	Maximum Balance for the Period	Ending Balance	Amount Actually Drawn	Amount of Endorsement/ Guarantee Collateralized by Properties	Ratio of Accumulated Endorsement/ Guarantee to Net Equity per Latest Financial Statements	Maximum Endorsement/ Guarantee Amount	Guarantee Provided by Parent Company (Note 9)	Guarantee Provided by Subsidiary (Note 9)	Guarantee Provided to Subsidiaries in Mainland China (Note 9)	Note
		Name	Nature of Relationship (Note 2)
0	Standard Foods Corporation	Standard Beverage Company Limited	b.	$ 13,869,019 (Note 3)	$ 145,875	$ 92,130	$ -	$ -	0.53%	$ 17,336,274 (Note 4)	Y	-	-

• Note 1: “0” for the Company, subsidiaries are numbered from “1”.

• Note 2: Relationships between the endorsement/guarantee provider and the guaranteed party:

• a. Trading partner.

• b. Majority owned subsidiary.

• c. The Company and subsidiary owns over 50% ownership of the investee company.

• d. A subsidiary jointly owned by the Company and company’s directly-owned subsidiary.

• e. Guaranteed by the Company according to construction contract.

• f. Investee company. The guarantees were provided based on the Company’s proportionate share in an investee company.

• g. Companies in the same industry provide among themselves joint and several security for a performance guarantee of a sales contract for pre-construction homes pursuant to the Consumer Protection Act for each other.

• Note 3: The total amount shall not exceed 80% of the net value in the financial statements of Standard Foods Corporation; the amount was calculated at $13,869,019 thousand (the net value per financial statements of $17,336,274 thousand x 80% as of September 30, 2021).

• Note 4: The total amount shall not exceed 100% of the net value in the financial statements of Standard Foods Corporation; the amount was calculated at $17,336,274 thousand (the net value per financial statements of $17,336,274 thousand x 100% as of September 30, 2021).

Note 5: Guarantee provided by the listed parent company, guarantee provided by the subsidiary or guarantee provided to subsidiaries in mainland China, coded “Y”.

• 58 -

TABLE 3

STANDARD FOODS CORPORATION

MARKETABLE SECURITIES HELD DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December 31, 2022	December 31, 2022		Note
				Shares	Carrying Amount	Percentage of Ownership	Fair Value
Standard Foods Corporation	Shares Far Eastern International Commercial Bank Co., Ltd. Chunghwa Telecom Co., Ltd. GeneFerm Biotechnology Co., Ltd. Dah Chung Bills Finance Corp. Mutual funds Cathay China Domestic Demand Growth Fund Cathay Target Date 2029 Fund Cathay Global Aggressive Fund Taishin 1699 Money Market Fund Hua Nan Phoenix Money Market Fund Shares Taiwan Semiconductor Manufacturing Co., Ltd. Apple Inc. Amazon.com, Inc. Alphabet Inc. Microsoft Corporation NVIDIA Corporation Tesla, Inc.	The Company is one of the directors	Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through other comprehensive income - non-current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current	1,466,828 48,600 2,145,110 1,274,480 3,585,869 4,720,915 2,284,844 53,336,058 3,209,709 12,000 1,675 740 820 372 467 387	$ 16,135 5,492 143,508 15,549 69,673 53,973 51,500 734,182 53,023 5,382 6,683 1,909 2,222 2,740 2,096 1,464	- - 5.2 0.3 - - - - - - - - - - - -	$ 16,135 5,492 143,508 15,549 69,673 53,973 51,500 734,182 53,023 5,382 6,683 1,909 2,222 2,740 2,096 1,464

(Continued)

• 59 -

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account		December 31, 2022	December 31, 2022		Note
				Shares	Carrying Amount	Percentage of Ownership	Fair Value
Standard Dairy Products Taiwan Limited Charng Hui Ltd.	U-Teck Environment Corporation, Ltd. Octamer, Inc. - Series E Preference Shares Octamer, Inc. - Series F Preference Shares Fortemedia, Inc. - Series D Preference Shares Fortemedia, Inc. - Series E Preference Shares Fortemedia, Inc. - Series F Preference Shares Fortemedia, Inc. - Series G Preference Shares Fortemedia, Inc. - Series I Preference Shares Fortemedia, Inc. - Series -Ordinary Shares Techgains Pan-Pacific Corporation Authenex, Inc. Paradigm Venture Capital Corporation Mutual funds Cathay China Domestic Demand Growth Fund Cathay Target Date 2029 Fund Cathay Global Aggressive Fund Taishin 1699 Money Market Fund Shares Standard Foods Corporation Formosa Plastics Corporation China Steel Corporation Polytronics Technology Corp. Taiwan Semiconductor Manufacturing Co., Ltd.	Parent of Charng Hui Ltd. Charng Hui Ltd. is one of the directors	Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current Financial assets at fair value through other comprehensive income - current	11,200 800,000 107,815 3,455 71,397 29,173 31,135 29,102 12,938 500,000 2,424,242 153,320 1,195,290 786,819 761,615 6,722,366 6,669,471 91,440 803,258 1,596,000 90,000	$ - - - - - - - - - - - 2,059 23,224 8,995 17,167 92,535 265,778 7,937 23,937 90,493 40,365	0.2 7.8 1.0 1.2 1.2 1.2 1.3 1.3 1.2 0.9 5.5 7.0 - - - - 0.7 - - 1.9 -	$ - - - - - - - - - - - 2,059 23,224 8,995 17,167 92,535 265,778 7,937 23,937 90,493 40,365	Note

(Continued)

• 60 -

Holding Company Name	Type and Name of Marketable Securities	Relationship with the Holding Company	Financial Statement Account	December 31, 2022	December 31, 2022	December 31, 2022	December 31, 2022	Note
				Shares	Carrying Amount	Percentage of Ownership	Fair Value
Standard Beverage Company Limited Domex Technology Corporation Accession Limited China Standard Investment	Mutual funds Fuh Hwa Global Strategic Allocation FoF Franklin Templeton SinoAm Franklin Templeton Global Bond Fund of Funds-Accu. Taishin 1699 Money Market Fund Shares Hong Da Leasing & Finance Co., Ltd. CNEX Co., Ltd. Amphastar Pharmaceuticals Inc. (AMPH) Mutual funds Fuh Hwa Greater China Mid & Small Cap Franklin Templeton SinoAm Global Bd Acc Shares InnoComm Mobile Technology Corp. Shares AsiaVest Liquidation Co. Mutual funds Term Liquidity Fund Shares Ccoop Group Co., Ltd.	Charng Hui Ltd. is one of the directors	Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - non-current Financial assets at fair value through profit or loss - current Financial assets at fair value through profit or loss - current	1,000,000 1,453,360 966,084 8,297,000 1,000,000 7,742 225,000 282,988 3,600,000 200 33,453 342,939	$ 11,500 16,851 13,298 - - 6,662 1,881 3,281 199,152 1,008 110,818 2,404	- - - 23.7 6.0 - - - 13.4 0.7 - -	$ 11,500 16,851 13,298 - - 6,662 1,881 3,281 199,152 1,008 110,818 2,404

Note: The amounts presented above were eliminated upon consolidation.

(Concluded)

• 61 -

TABLE 4

STANDARD FOODS CORPORATION

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, 2022

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationships		Transaction Details	Transaction Details	Transaction Details	Abnormal Transaction	Abnormal Transaction	Notes/Accounts Payable (Receivable)	Notes/Accounts Payable (Receivable)	Note
			Purchases (Sales)	Amount	% to Total	Payment Terms	Unit Price	Payment Terms	Ending Balance	% to Total
Standard Foods Corporation Standard Dairy Products Taiwan Limited Shanghai Standard Foods Co., Ltd. Standard Investment (China) Co., Ltd. Standard Foods (China) Co., Ltd. Standard Investment (China) Co., Ltd. Standard Foods (China) Co., Ltd. Standard Foods (Xiamen) Co., Ltd. Standard Investment (China) Co., Ltd.	Standard Dairy Products Taiwan Limited Standard Foods Corporation Standard Investment (China) Co., Ltd. Shanghai Standard Foods Co., Ltd. Standard Investment (China) Co., Ltd. Standard Foods (China) Co., Ltd. Standard Foods (Xiamen) Co., Ltd. Standard Foods (China) Co., Ltd. Standard Investment (China) Co., Ltd. Standard Foods (Xiamen) Co., Ltd.	The Company’s subsidiary Parent company of Standard Dairy Products Taiwan Limited Brother company of Shanghai Standard Foods Co., Ltd. Brother company of Standard Investment (China) Co., Ltd. Parent company of Standard Foods (China) Co., Ltd. Standard Investment (China) Co., Ltd.’s subsidiary Brother company of Standard Foods (China) Co., Ltd. Brother company of Standard Foods (Xiamen) Co., Ltd. Parent company of Standard Foods (Xiamen) Co., Ltd. Standard Investment (China) Co., Ltd.’s subsidiary	Sales Purchases Purchases Sales Sales Purchases Purchases Sales Sales Purchases Purchases Sales Sales Purchases	$ (1,510,650) 1,159,395 1,510,650 (1,159,395) (1,725,669) 694,761 1,725,669 (694,761) (5,300,160) 5,300,160 101,445 (101,445) (3,801,302) 3,801,302	12.41 14.57 53.21 31.34 69.44 30.51 15.79 5.63 94.98 48.71 2.61 1.82 96.14 34.94	55 days after month end closing (net of receivables and payables) 55 days after month end closing (net of receivables and payables) 55 days after month end closing (net of receivables and payables) 55 days after month end closing (net of receivables and payables) 60 days after month-end closing 60 days after month-end closing 60 days after month-end closing 60 days after month-end closing 60 days after month-end closing 60 days after month-end closing 60 days after month-end closing 60 days after month-end closing 60 days after month-end closing 60 days after month-end closing	- - - - - - - - - - - - -	- - - - - - - - - - - - -	$ 141,101 - (141,101) - 599,301 (262,620) (599,301) 262,620 1,361,068 (1,361,068) (10) 10 1,094,813 (1,094,813)	6.76 - 33.69 - 100.00 79.73 17.08 10.66 99.98 38.79 0.03 0.00 99.53 31.20	Note Note Note Note Note Note Note Note Note Note Note Note Note Note

Note: The amounts presented above were eliminated upon consolidation.

• 62 -

TABLE 5

STANDARD FOODS CORPORATION

RECEIVABLES FROM RELATED PARTIES AMOUNTING TO AT LEAST NT$100 MILLION OR 20% OF THE PAID-IN CAPITAL DECEMBER 31, 2022

(In Thousands of New Taiwan Dollars)

Company Name	Related Party	Relationships	Ending Balance for Account Receivable - Related Parties	Ending Balance for Account Receivable - Related Parties	Turnover Rate		Overdue	Overdue		Amounts Received in Subsequent Period	Allowance for Bad Debts	Allowance for Bad Debts	Note
							Amount	**Actions Taken **
Standard Foods Corporation Shanghai Standard Foods Co., Ltd. Standard Foods (China) Co., Ltd. Standard Investment (China) Co., Ltd. Standard Foods (Xiamen) Co., Ltd.	Standard Dairy Products Taiwan Limited Standard Foods (China) Co., Ltd. Standard Foods (Xiamen) Co., Ltd. Standard Investment (China) Co., Ltd. Standard Investment (China) Co., Ltd. Standard Foods (China) Co., Ltd. Standard Foods (Xiamen) Co., Ltd. Shanghai Standard Foods Co., Ltd. Shanghai Le Ben Tuo Health Technology Co., Ltd. Shanghai Dermalab Corporation Standard Investment (China) Co., Ltd.	The Company’s subsidiary The Company’s subsidiary The Company’s subsidiary Brother company of Shanghai Standard Foods Co., Ltd. Parent company of Standard Foods (China) Co., Ltd. Standard Investment (China) Co., Ltd.’s subsidiary Standard Investment (China) Co., Brother company of Standard Investment (China) Co., Ltd. Standard Investment (China) Co., Ltd.’s subsidiary Standard Investment (China) Co., Ltd.’s subsidiary Parent company of Standard Foods	Trade receivables Other receivables Financing receivables Other receivables Financing receivables Other receivables Trade receivables Financing receivables Other receivables Trade receivables Other receivables Trade receivables Financing receivables Other receivables Trade receivables Other receivables Trade receivables Other receivables Financing receivables Other receivables Financing receivables Other receivables Trade receivables	$ 141,101 3,269 $ 144,370 $ 440,940 2,508 $ 443,448 $ 440,940 2,508 $ 443,448 $ 599,301 145,224 5,443 $ 749,968 $ 1,361,068 13,736 $ 1,374,804 $ 23 272,153 19,443 $ 291,619 $ 380,566 17,457 $ 398,023 $ 262,620 3,536 $ 266,156 $ 197,069 2,417 $ 199,486 $ 114,181 2,046 $ 116,227 $ 1,094,813	11.55 2.93 3.79 23.66 2.98 2.94		$ - - $ - $ - - $ - $ - - $ - $ - - - $ - $ - - $ - $ - - - $ - $ - - $ - $ - - $ - $ - - $ - $ - - $ - $ -			$ 141,101 (Note 1) 3,269(Note 1) $ 144,370(Note 1) $ - (Note 1) - (Note 1) $ - (Note 1) $ - (Note 1) - (Note 1) $ - (Note 1) $ 599,301 (Note 1) - (Note 1) 5,443(Note 1) $ 604,744(Note 1) $ 471,961 (Note 1) 2,932(Note 1) $ 474,893(Note 1) $ 23 (Note 1) - (Note 1) 19,443(Note 1) $ 19,466(Note 1) $ - (Note 1) 14,841(Note 1) $ 14,841(Note 1) $ 262,620 (Note 1) 3,536(Note 1) $ 266,156(Note 1) $ - (Note 1) 2,417(Note 1) $ 2,417(Note 1) $ - (Note 1) 2,046(Note 1) $ 2,046(Note 1) $ 1,094,813(Note 1)		$ - - $ - $ - - $ - $ - - $ - $ - - - $ - $ - - $ - $ - - - $ - $ - - $ - $ - - $ - $ - - $ - $ - - $ - $ -	(Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2) (Note 2)

Note 1: Amounts received before March 23, 2023.

Note 2: The amounts presented above were eliminated upon consolidation.

• 63 -

TABLE 6

STANDARD FOODS CORPORATION

INFORMATION ON INVESTEES FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Investor Company	Investee Company	Location	Main Businesses and Products	Original Investment Amount	Original Investment Amount	As of December 31, 2022	As of December 31, 2022	As of December 31, 2022	Net Income (Loss) of the Investee	Share of Profits (Loss)	Note
				December 31, 2022	December 31, 2021	Shares	%	Carrying Amount
Standard Foods Corporation Accession Limited Dermalab S.A. Standard Investment (Cayman) Limited	Accession Limited Standard Investment (Cayman) Limited Standard Dairy Products Taiwan Limited Charng Hui Ltd. Domex Technology Corporation Standard Beverage Company Limited Standard Foods, LLC. Standard Great Foods Singapore PTE. LTD. Dermalab S.A. Swissderma SL Standard Corporation (Hong Kong) Limited	Tortola, British Virgin Islands Grand Cayman, Cayman Islands Taipei, Taiwan Taipei, Taiwan Hsinchu, Taiwan Taipei, Taiwan U.S.A. Singapore Switzerland Spain Hong Kong	Investment business Investment business Manufacture and sale of dairy products and beverages Investment business Manufacture and sale of computer peripherals and computer and information products Manufacture and sale of beverages Sale of health foods Food trade Development and sale of cosmetics Sale of cosmetics Investment business	$ 3,936,267 4,713,791 300,853 230,000 114,116 79,072 9,056 317 379,489 96 4,709,971	$ 3,936,267 4,710,865 300,853 230,000 114,116 79,072 9,056 - 379,489 96 4,708,566	123,600,000 150,224,815 30,000,000 24,100,000 10,374,399 7,907,000 Note 4 Note 4 4,050 3,000 150,098,815	100 100 100 100 52 100 100 100 100 100 100	$ 3,645,244 4,685,090 1,042,081 297,285 328,587 81,609 9,213 320 238,663 - 4,683,503	$ 26,829 (914,564) 340,558 24,684 81,050 839 - - (10,148) - (914,408)	$ 28,884 (Note 1) (914,564) 340,971 (Note 2) 12,012 (Note 3) 42,154 839 - - - - -	Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) Subsidiary (Note 5) Indirect subsidiary (Note 5) Indirect subsidiary (Note 5) Indirect subsidiary (Note 5)

Note 1: This amount was the share of loss of the investee of $26,829 thousand plus the unrealized gain on sidestream transactions of $2,055 thousand.

Note 2: This amount was the share of profit of the investee of $340,558 thousand plus the unrealized gain on sidestream transactions of $413 thousand.

Note 3: This amount was the share of profit of the investee of $24,684 thousand minus the Standard Foods Corporation cash dividends paid of $12,672 thousand.

Note 4: This is a limited company with no issued shares.

Note 5: The amounts presented above were eliminated upon consolidation.

• 64 -

TABLE 7

STANDARD FOODS CORPORATION

INFORMATION ON INVESTMENTS IN MAINLAND CHINA FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Investee Company	Main Businesses and Products	Paid-in Capital	Method of Investment (Note 1)	Accumulated Outward Remittance for Investment from Taiwan as of January 1, 2022	Remittance of Funds	Remittance of Funds	Accumulated Outward Remittance for Investment from Taiwan as of December 31, 2022	Net Income (Loss) of the Investee	% Ownership of Direct or Indirect Investment	Investment Gain (Loss) (Note 2)	Carrying Amount as of December 31, 2022	Accumulated Repatriation of Investment Income as of December 31, 2022	Note
					Outward	Inward
Shanghai Standard Foods Co., Ltd. Standard Investment (China) Co., Ltd. Shanghai New Vitality Health Technology (Group) Co., Ltd. Standard Foods (China) Co., Ltd. Shanghai Dermalab Corporation Shanghai Le Ben Tuo Health Technology Co., Ltd. Shanghai Le Ben De Health Technology Co., Ltd. Standard Foods (Xiamen) Co., Ltd. Shanghai Le Ho Industrial Co., Ltd. Shanghai Le Min Industrial Co., Ltd.	Manufacture and sale of edible oil products and nutritional foods Investment and sales of edible oil products and nutritional foods Sale of nutritional foods, cosmetics and international trading Manufacture and sale of edible oil products and nutritional foods Sale of nutritional foods, cosmetics and international trading Sale of nutritional foods and international trading Sale of nutritional foods and international trading Manufacture and sale of edible oil products and nutritional foods Property management Property management	$ 3,949,575 3,755,530 445,000 1,714,756 93,989 380,418 31,220 1,307,582 607,717 378,009	b. (Note 3) b. (Note 5) b. (Note 5) c. (Note 6) c. (Note 9) c. (Note 9) c. (Notes 4 and 9) c. (Note 6) b. (Note 5) b. (Note 5)	$ 3,949,575 (Note 4) 3,718,677 (Note 5) - (Note 5) - (Note 6) - (Note 6) 181,048 (Note 7) 31,220 (Note 4) - (Note 6) 607,717 (Note 5) 378,009 (Note 5)	$ - - - - - - - - - -	$ - - - - - - - - - -	$ 3,949,575 (Note 4) 3,718,677 (Note 5) - (Note 5) - (Note 6) - (Note 9) 181,048 (Note 9) 31,220 (Note 9) - (Note 6) 607,717 (Note 5) 378,009 (Note 5)	$ 29,183 (872,826) (15,711) 68,410 (14,822) (122,197) 920 54,219 (21,706) (13,033)	100.0% 99.0 99.0 99.0 99.0 99.0 99.0 99.0 100.0 100.0	$ 29,814 (Note 10) (864,098) (Note 10) (15,554) (Note 10) 77,777 (Note 10) (14,674) (Note 10) (121,660) (Note 10) 924 (Note 10) 68,427 (Note 10) (21,706) (Note 10) (13,033) (Note 10)	$ 3,265,214 3,568,111 364,395 2,441,375 (17,223) (57,254) 30,896 1,601,316 460,888 288,326	$ - - - - - - - - - -	Note 12 Note 12 Note 12 Note 12 Note 12 Note 12 Note 12 Note 12 Note 12 Note 12

Accumulated Outward Remittance for Investment in Mainland China as of	Investment Amounts Authorized by	Upper Limit on the Amount of Investment
December 31, 2022	Investment Commission, MOEA	Stipulated by Investment Commission, MOEA
$8,919,525	$9,656,767	Unlimited amount of investment (Note 11)

• Note 1: The methods for engaging in investment in mainland China include the following:

• a. Direct investment in mainland China.

• b. Indirect investment in mainland China through companies registered in a third region. c. Other methods.

(Continued)

• 65 -

Note 2: For the investment income (loss) recognized in the current period:

• a. There was no investment income (loss) recognized due to the investment still being in the development stage.

• b. The investment income (loss) was determined based on the following basis:

  • 1) The financial report was audited and certified by an international accounting firm in cooperation with an ROC accounting firm.

  • 2) The financial statements audited by the CPA of the parent company in Taiwan.

  • 3) Others.

• Note 3: Accession Limited is the investor company in third region.

Note 4: There was no difference between the beginning balance and the ending balance of the accumulated amount invested from Taiwan for the year ended December 31, 2021; the investment remained at $4,034,074 thousand. Of the $4,034,074 thousand, $53,279 thousand has been retained in Accession Limited. The remaining balance of thereof, amounting to $3,980,795 thousand, was originally the outward remittance of the investment of Shanghai Standard Foods Co., Ltd. in 2015. However, as of July 2015, of the $3,980,795 thousand, $31,220 thousand was invested in Shanghai Le Ben De Health Technology Co., Ltd. by Shanghai Standard Foods Co., Ltd. In aggregate, the outward remittance of the investments of Shanghai Standard Foods Co., Ltd. and Shanghai Le Ben De Health Technology Co., Ltd. was $3,949,575 thousand and $31,220 thousand, respectively.

• Note 5: Standard Corporation (Hong Kong) Limited is the investor company in third region.

• Note 6: The Company in mainland China was reinvested through a company registered in mainland China, namely Standard Investment (China) Co., Ltd.

• Note 7: The Company in mainland China was invested directly by Standard Foods Corporation and was reinvested through a company registered in mainland China, namely Standard Investment (China) Co., Ltd. The amount invested directly was $181,048 thousand.

Note 8: This company was spun off from Shanghai Standard Foods Co., Ltd.; it is the investor company in third region.

• Note 9: The Company in mainland China was reinvested through a company registered in mainland China, namely Shanghai New Vitality Health Technology (Group) Co., Ltd.

Note 10: Recognition of investment income (loss) was based on Note 2, b, 2).

Note 11: The Industrial Development Bureau of the MOEA issued the proofing document of operational headquarters to the Company; the document is still valid within the audit period. Hence, according to the Investment Commission of the MOEA, there is no upper limit on the amount of investment.

Note 12: The amounts presented above were eliminated upon consolidation.

(Concluded)

• 66 -

TABLE 8

STANDARD FOODS CORPORATION

INFORMATION OF MAJOR SHAREHOLDERS DECEMBER 31, 2022

Name of Major Shareholder	Shares	Shares
	Number of Shares	Percentage of Ownership (%)
Mu Te Investment Co., Ltd. Trust Property Account Chia Yun Investment Co., Ltd. Trust Property Account Chia Chieh Investment Co., Ltd. Trust Property Account	161,918,315 135,417,408 108,503,160	17.69 14.79 11.85

• Note 1: The information of major shareholders presented in this table is provided by the Taiwan Depository & Clearing Corporation based on the number of ordinary shares and preference shares held by shareholders with ownership of 5% or greater, that have been issued without physical registration (including treasury shares) by the Company as of the last business day for the current quarter. The share capital in the consolidated financial statements may differ from the actual number of shares that have been issued without physical registration because of different preparation basis.

• Note 2: If a shareholder delivers the shareholdings to the trust, the above information will be disclosed by the individual truster who opened the trust account. For shareholders who declare insider shareholdings with ownership greater than 10% in accordance with the Security and Exchange Act, the shareholdings include shares held by shareholders and those delivered to the trust over which shareholders have rights to determine the use of trust property. For information relating to insider shareholding declaration, please refer to Market Observation Post System.

• 67 -

STANDARD FOODS CORPORATION

THE CONTENTS OF SCHEDULES OF MAJOR ACCOUNTING ITEMS

Item Major Accounting Items in Assets, Liabilities and Equity Schedule of cash and cash equivalents Schedule of financial assets at fair value through profit or loss - current Schedule of financial assets at fair value through other comprehensive income - current Schedule of financial assets at amortized cost - current Schedule of trade receivables Schedule of inventories Schedule of financial assets at fair value through profit or loss - non-current Schedule of financial assets at fair value through other comprehensive income - non-current Schedule of changes in investments accounted for using the equity method Schedule of changes in right-of-use assets Schedule of trade payables Schedule of lease liabilities Major Accounting Items in Profit or Loss Schedule of operating revenue Schedule of operating costs Schedule of operating expenses Schedule of labor, depreciation and amortization by function

**Schedule Index **

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

• 68 -

SCHEDULE 1

STANDARD FOODS CORPORATION

SCHEDULE OF CASH AND CASH EQUIVALENTS DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars, Unless Stated Otherwise)

Item Description Interest Rate Cash on hand Cash in banks Checking account deposits Demand deposits 0.001%-0.850% Foreign currency demand deposits Including US$2,422 thousand @30.71, EUR40 thousand @32.72, AUD1 thousand @20.83, RMB2 thousand @4.41 0.001%-0.850% Cash equivalents Foreign time deposits Including US$1,200 thousand @30.71 AUD522 thousand @20.83, EUR2,001 thousand @32.72 and SGD200 thousand @22.88 1.400%-4.800%

Amount $ 785 148,802 2,542 75,735 227,079 117,776 $ 345,640

• 69 -

SCHEDULE 2

STANDARD FOODS CORPORATION

SCHEDULE OF FINANCIAL ASSETS AT FAIR VALUE THOUGH PROFIT OR LOSS DECEMBER 31, 2022

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

Name of Financial Assets Mutual fund Taishin 1699 Money Market Fund Cathay China Domestic Demand Growth Fund Cathay Target Date 2029 Fund Hua Nan Phoenix Money Market Fund Cathay Global Aggressive Fund Shares Taiwan Semiconductor Manufacturing Co., Ltd. Apple Inc. Amazon.com, Inc. Alphabet Inc. Microsoft Corporation NVIDIA Corporation Tesla, Inc.	Shares/Units Par Value (NT$) 53,336,057.83 13.77 3,585,869.30 19.43 4,720,915.20 11.43 3,209,709.10 16.52 2,284,843.90 22.54 67,137,395.33 12,000.00 448.50 1,675.00 129.93 740.00 84.00 820.00 88.23 372.00 239.82 467.00 146.14 387.00 123.18 16,461.00 67,153,856.33	Total Amount Acquisition Cost $ 734,182 $ 733,925 69,673 120,000 53,973 60,000 53,023 53,000 51,500 60,000 962,351 1,026,925 5,382 7,304 6,683 8,306 1,909 3,349 2,222 3,294 2,740 3,313 2,096 3,317 1,464 3,315 22,496 32,198 $ 984,847 $ 1,059,123	Fair Value Changes in Fair Value Attributed Unit Price Total Amount to Credit Risk Note 13.77 $ 734,182 $ - 19.43 69,673 - 11.43 53,973 - 16.52 53,023 - 22.54 51,500 - 962,351 - 448.50 5,382 - 129.93 6,683 - 84.00 1,909 - 88.23 2,222 - 239.82 2,740 - 146.14 2,096 - 123.18 1,464 - 22,496 - $ 984,847 $ -
			Unit Price 13.77 19.43 11.43 16.52 22.54 448.50 129.93 84.00 88.23 239.82 146.14 123.18

• 70 -

SCHEDULE 3

STANDARD FOODS CORPORATION

SCHEDULE OF FINANCIAL ASSETS AT FAIR VALUE THROUGH COMPREHENSIVE INCOME - CURRENT DECEMBER 31, 2022

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

Accumulated Name of Financial Assets Shares Par Value (NT$) Total Amount Acquisition Cost Impairment Listed shares Chunghwa Telecom Co., Ltd. 48,600 10 $ 486 $ 4,063 $ - Far Eastern International Commercial Bank Co., Ltd. 1,466,828 10 14,668 17,114 - $ 15,154 $ 21,177 $ -	FairValue
	Unit Price Total Amount 113.00 $ 5,492 11.00 16,135 $ 21,627

• 71 -

SCHEDULE 4

STANDARD FOODS CORPORATION

SCHEDULE OF FINANCIAL ASSETS AT AMORTIZED COST - CURRENT DECEMBER 31, 2022

(In Thousands of New Taiwan Dollars)

Name Description Number Par Value Currency Total Amount Annual Interest Rate Far Eastern International Bank time deposit Expiry in January 2023, maturity interest 2 4,900 NTD $ 9,800 0.80% Far Eastern International Bank time deposit Expiry in February 2023, maturity interest 7 4,900 NTD 34,300 0.80% Far Eastern International Bank time deposit Expiry in March 2023, maturity interest 8 4,900 NTD 39,200 0.76% Far Eastern International Bank time deposit Expiry in August 2023, maturity interest 9 4,900 NTD 44,100 1.18% Far Eastern International Bank time deposit Expiry in October 2023, maturity interest 3 2,900 NTD 8,700 1.30% Far Eastern International Bank time deposit Expiry in November 2023, maturity interest 9 4,900 NTD 44,100 1.30% Far Eastern International Bank time deposit Expiry in December 2023, maturity interest 4 4,900 NTD 19,600 1.30% Far Eastern International Bank time deposit Expiry in December 2023, maturity interest 2 4,900 NTD 9,800 1.43% The Shanghai Commercial & Saving Bank time deposit Expiry in January 2023, maturity interest 3 49,900 NTD 149,700 0.92% The Shanghai Commercial & Saving Bank time deposit Expiry in February 2023, maturity interest 1 40,000 NTD 40,000 0.91% Bank of China foreign time deposit Expiry in June 2023, maturity interest 1 5,744 RMB 25,329 2.45% OCBC Wing Hang Bank foreign time deposit Expiry in August 2023, maturity interest 1 2,274 RMB 10,029 2.25% Taishin Bank foreign time deposit Expiry in March 2023, maturity interest 1 14,153 RMB 62,405 2.24% CTBC Bank Co., Ltd foreign time deposit Expiry in June 2023, maturity interest 1 2,000 USD 61,420 5.10% CTBC Bank Co., Ltd foreign time deposit Expiry in October 2023, maturity interest 2 1,000 USD 61,420 4.50% CTBC Bank Co., Ltd foreign time deposit Expiry in December 2023, maturity interest 1 2,000 USD 61,420 5.25% HSBC foreign time deposit Expiry in March 2023, maturity interest 1 186 SGD 4,256 3.35% ANZ Bank foreign time deposit Expiry in January 2023, maturity interest 1 1,000 AUD 20,830 3.06% ANZ Bank foreign time deposit Expiry in January 2023, maturity interest 1 2,000 AUD 41,660 3.06% ANZ Bank foreign time deposit Expiry in January 2023, maturity interest 1 500 AUD 10,415 3.21% $ 758,484

Carrying Amount Remark $ 9,800 Floating 34,300 Floating 39,200 Fixed 44,100 Floating 8,700 Floating 44,100 Floating 19,600 Floating 9,800 Floating 149,700 Floating 40,000 Fixed 25,329 Fixed (@4.41) 10,029 Fixed (@4.41) 62,405 Fixed (@4.41) 61,420 Fixed (@30.71) 61,420 Fixed (@30.71) 61,420 Fixed (@30.71) 4,256 Fixed (@22.88) 20,830 Fixed (@20.83) 41,660 Fixed (@20.83) 10,415 Fixed (@20.83) $ 758,484

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SCHEDULE 5

STANDARD FOODS CORPORATION

SCHEDULE OF TRADE RECEIVABLES DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Client Name Unrelated parties Company A Company B Company C Company D Others (Note) Less: Allowance for impairment loss Related party Standard Dairy Products Taiwan Limited GeneFerm Biotechnology Co., Ltd.	Amount $ 620,431 363,734 289,970 63,680 601,689 1,939,504 (2,274) $ 1,937,230 $ 141,101 4,737 $ 145,838

Note: The amount of individual vendor included in others does not exceed 5% of the account balance.

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SCHEDULE 6

STANDARD FOODS CORPORATION

SCHEDULE OF INVENTORIES DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Item Merchandise Finished goods Work in progress Raw materials Packaging materials		Amount
		Cost Net Realizable Value $ 332,409 $ 484,078 1,305,660 2,079,653 213,341 346,681 782,833 1,219,800 57,346 76,454 $ 2,691,589 $ 4,206,666

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SCHEDULE 7

STANDARD FOODS CORPORATION

SCHEDULE OF FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS - NON-CURRENT FOR THE YEAR ENDED DECEMBER 31, 2022

(In Thousands of New Taiwan Dollars)

Investees Paradigm Venture Capital Corporation Authenex, Inc. Techgains Pan-Pacific Corporation U-Teck Environment Corporation, Ltd. Octamer, Inc. - Series E preference shares Octamer, Inc. - Series F preference shares ForteMedia, Inc. - Series D preference shares ForteMedia, Inc. - Series E preference shares ForteMedia, Inc. - Series F preference shares ForteMedia, Inc. - Series G preference shares ForteMedia, Inc. - Series I preference shares ForteMedia - ordinary shares	Balance at January 1, 2022 Shares/Units Fair Value 153,320 $ 2,244 2,424,242 - 500,000 - 11,200 - 800,000 - 107,815 - 3,455 - 71,397 - 29,173 - 31,135 - 29,102 - 12,938 - $ 2,244	Addition Shares/Units Amount - $ - - - - - - - - - - - - - - - - - - - - - - - $ -	Deduction Accumulated Reversal of Impairment Shares/Units Amount Loss - $ 185 $ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $ 185 $ -	Balance at December 31, 2022 Accumulated Shares/Units Fair Value Collateral Impairment Remark 153,320 $ 2,059 Nil $ - Note 2,424,242 - Nil - - 500,000 - Nil - - 11,200 - Nil - - 800,000 - Nil - - 107,815 - Nil - - 3,455 - Nil - - 71,397 - Nil - - 29,173 - Nil - - 31,135 - Nil - - 29,102 - Nil - - 12,938 - Nil - - $ 2,059
	Shares/Units 153,320 2,424,242 500,000 11,200 800,000 107,815 3,455 71,397 29,173 31,135 29,102 12,938	Shares/Units - - - - - - - - - - - -	Shares/Units - - - - - - - - - - - -	Shares/Units 153,320 2,424,242 500,000 11,200 800,000 107,815 3,455 71,397 29,173 31,135 29,102 12,938

Note: The decreased due to the changes in the fair value.

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SCHEDULE 8

STANDARD FOODS CORPORATION

FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME - NON-CURRENT FOR THE YEAR ENDED DECEMBER 31, 2022

(In Thousands of New Taiwan Dollars)

Item Emerging market shares GeneFerm Biotechnology Co., Ltd. Dah Chung Bills Finance Corp	Balance at January 1, 2022 Shares Fair Value 2,145,110 $ 95,136 1,274,480 17,129 $ 112,265	Addition Shares Amount - $ - - - $ -	Deduction Unrealized Shares Amount Gain (Loss) - $ - $ 48,372 - - (1,580) $ - $ 46,792	Balance at December 31, 2022 Accumulated Shares Fair Value Impairment Collateral Remark 2,145,110 $ 143,508 $ - Nil - 1,274,480 15,549 - Nil - $ 159,057 $ -
	Shares 2,145,110 1,274,480	Shares - -	Shares - -	Shares 2,145,110 1,274,480

Note: The increased due to the share dividend.

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SCHEDULE 9

STANDARD FOODS CORPORATION

SCHEDULE OF CHANGES IN INVESTMENTS ACCOUNTED FOR USING THE EQUITY METHOD FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Investees Accession Limited Standard Dairy Products Taiwan Limited Charng Hui Ltd. DOMEX Technology Corporation Standard Beverage Company Limited Standard Investment (Cayman) Limited Shanghai Le Ben Tuo Health Technology Co., Ltd. Standard Foods, LLC. Standard Great Foods Singapore PTE. LTD.	Balance at January 1, 2022 Shares/Unit Amount 123,600,000 $ 3,546,644 30,000,000 1,134,020 24,100,000 422,385 10,374,399 425,275 7,907,000 82,390 150,124,815 5,538,645 - 32,168 - 8,304 - - $ 11,189,831	Addition Shares/Unit Amount - $ 99,799 - 348,971 - 24,684 - 42,154 - 935 100,000 85,119 - 26,955 - 909 - 320 $ 629,846	Decrease Shares/Unit Amount - $ 1,199 - 440,910 - 149,784 - 138,842 - 1,716 - 938,674 - 59,123 - - - - $ 1,730,248	Balance at December 31, 2022 Shares/Unit % Amount 123,600,000 100.00 $ 3,645,244 30,000,000 100.00 1,042,081 24,100,000 100.00 297,285 10,374,399 52.00 328,587 7,907,000 100.00 81,609 150,224,815 100.00 4,685,090 - - - - 100.00 9,213 - 100.00 320 $ 10,089,429	Net Assets	Value Total Price Collateral Remark $ 3,690,499 Nil Note 1 1,056,193 Nil Note 2 563,063 Nil Note 3 328,587 Nil Note 4 81,609 Nil Note 5 4,685,090 Nil Note 6 - Nil Notes 7 and 10 9,213 Nil Notes 8 and 10 320 Nil Notes 9 and 10 $ 10,414,574
					Unit Price (NT$) 29.86 35.20 23.36 31.67 10.32 31.19 - - -
	Shares/Unit 123,600,000 30,000,000 24,100,000 10,374,399 7,907,000 150,124,815 - - -	Shares/Unit - - - - - 100,000 - - -	Shares/Unit - - - - - - - - -	Shares/Unit % 123,600,000 100.00 30,000,000 100.00 24,100,000 100.00 10,374,399 52.00 7,907,000 100.00 150,224,815 100.00 - - - 100.00 - 100.00

• Note 1: For the year ended December 31, 2022, the increase amount of other comprehensive income accounted for using the equity method was $824 thousand, investment income was $28,884 thousand and translation adjustment was $70,091 thousand; the decrease due to reorganization adjustment was $1,199 thousand.

• Note 2: For the year ended December 31, 2022, the increase amount of investment income accounted for using the equity method was $340,971 thousand and other comprehensive income was $8,000 thousand; the decrease amount of the cash dividend issued by the investee was $440,910 thousand.

• Note 3: This is a subsidiary of the Company, and because it held the shares of the Company, it received cash dividend from the Company. Therefore, there was an increase in cash dividend which amounted to a total of $24,684 thousand, of which adjustment to the capital surplus was $12,672 thousand. The investment income accounted for using the equity method was $12,012 thousand. For the year ended December 31, 2022, the decrease amount of other comprehensive income accounted for using the equity method was $130,022 thousand and the cash dividend which was issued by the investee was $19,762 thousand.

• Note 4: For the year ended December 31, 2022, the increase amount of investment income accounted for using the equity method was $42,154 thousand; and the decrease amount of other comprehensive income accounted for using the equity method was $102,531 thousand and the cash dividend which was issued by the investee was $36,311 thousand.

• Note 5: For the year ended December 31, 2022, the increase amount of investments amounted to $935 thousand, of which the equity method adopted for the accounting of the investment income was $839 thousand; other comprehensive income was $96 thousand; the decrease amount of cash dividend which was issued by the investee was $1,716 thousand.

• Note 6: For the year ended December 31, 2022, the increase amount of additional investment was $2,926 thousand and translation adjustment accounted for using the equity method was $82,193 thousand; and the decrease amount of investment loss accounted for using the equity method was $914,564 thousand and reorganization adjustment was $24,110 thousand.

• Note 7: For the year ended December 31, 2022, the increase amount of translation adjustment accounted for using the equity method was $1,404 thousand and the decrease of investments amounted to $25,551 thousand; and the decrease amount of investment loss accounted for using the equity method was $59,123 thousand.

Note 8: For the year ended December 31, 2022, the increase amount of translation adjustment accounted for using the equity method was $909 thousand.

Note 9: For the year ended December 31, 2022, the increase amount of additional investment was $317 thousand and translation adjustment accounted for using the equity method was $3 thousand.

Note 10: This is a limited company with no issued shares.

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SCHEDULE 10

STANDARD FOODS CORPORATION

SCHEDULE OF CHANGES IN RIGHT-OF-USE ASSETS DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Item Cost As originally stated on January 1, 2022 Additions Lease expiration/termination Balance at December 31, 2022 Accumulated depreciation As originally stated on January 1, 2022 Depreciation expenses Lease expiration/termination Balance at December 31, 2022	Land $ 4,011 1,134 (1,134) $ 4,011 $ 1,832 1,854 (1,134) $ 2,552	Buildings Office Equipment Transpor- tation Equipment $ 148,258 $ 550 $ 2,107 7,095 1,692 1,177 (390) - - $ 154,963 $ 2,242 $ 3,284 $ 11,730 $ 201 $ 703 31,360 377 767 (345) - - $ 42,745 $ 578 $ 1,470	Amount $ 154,926 11,098 (1,524) $ 164,500 $ 14,466 34,358 (1,479) $ 47,345

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SCHEDULE 11

STANDARD FOODS CORPORATION

SCHEDULE OF TRADE PAYABLES DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Vendor Name Unrelated parties Company C Company B Company F Company E Company G Others (Note) Related party GeneFerm Biotechnology Co., Ltd.	Amount $ 57,387 55,699 41,677 37,680 35,218 570,260 $ 797,921 $ 19,633

Note: The amount of individual vendor included in others does not exceed 5% of the account balance.

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SCHEDULE 12

STANDARD FOODS CORPORATION

SCHEDULE OF LEASE LIABILITIES FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

			Balance at	Balance at
		Discount	December 31,
	Lease Term	Rate		2022	Remark
Land	2022/12/1-2023/11/30	1.07%	$	1,040
Buildings	2021/1/1-2028/5/31	1.07%		114,102
Office equipment	2019/8/1-2027/12/31	1.07%		1,684
Transportation equipment	2021/1/1-2025/10/30	1.07%-1.25%		1,823
				118,649
Less: Within 1 year				(33,017)
Lease liabilities - non-current			$	85,632

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SCHEDULE 13

STANDARD FOODS CORPORATION

SCHEDULE OF OPERATING REVENUES FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Item Quantity (Tons) Nutritious foods 95,038 Cooking products 23,346 Others 7,843 Total sales Less: Sales returns Sales allowances Net sales	Amount $ 11,018,531 2,597,770 495,588 14,111,889 (96,419) (1,847,040) $ 12,168,430

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SCHEDULE 14

STANDARD FOODS CORPORATION

SCHEDULE OF OPERATING COSTS FOR THE YEAR ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Item

Amount

Cost of goods sold - finished goods Raw materials, beginning of year Add: Raw materials purchased Gain on physical inventory of raw materials Less: Transferred to other accounts Sales of raw materials Raw materials scrapped Raw materials, end of year Raw materials consumed Direct labor Manufacturing expenses Manufacturing costs Work in progress, beginning of year Less: Work in progress scrapped Other use Cost of finished goods Work in progress, end of year Finished goods, beginning of year Less: Transferred to other accounts Profit on physical inventory of finished goods Finished goods scrapped Cost of goods sold adjustment Finished goods, end of year Cost of goods sold - finished goods Cost of goods sold - merchandise Merchandise, beginning of year Add: Merchandise purchased Profit on physical inventory of merchandise Less: Other use Merchandise scrapped Cost of goods sold adjustment Merchandise, end of year Cost of goods sold - merchandise Cost of sales of raw materials Gain on physical inventory Inventory scrap losses

$ 465,406 6,727,241 37 (5,387) (135,546) (980) (840,179) 6,210,592 263,486 1,024,418 7,498,496 130,125 (3,760) (10,538) 7,614,323 (213,341) 881,331 (79,826) 55 (2,152) (11,678) (1,305,660) 6,883,052 214,067 1,192,567 48 (5,059) (827) (522) (332,409) 1,067,865 135,546 (140) 7,719 $ 8,094,042

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SCHEDULE 15

STANDARD FOODS CORPORATION

SCHEDULE OF OPERATING EXPENSES FOR THE YEARS ENDED DECEMBER 31, 2022 (In Thousands of New Taiwan Dollars)

Item Advertising expenses Salaries and pensions Freight expenses Taxes Professional service fees Rental Insurance premiums Amortization Depreciation Traveling expenses Repair and maintenance expenses Computer expenses Meal expenses Postage and telephone charges Entertainment expenses Employee welfare Utilities Donations Others Cost-sharing sectors	Selling and Marketing Expenses $ 932,792 340,038 134,519 22,286 - 26,362 35,576 1,962 18,046 18,569 4,983 26,542 11,084 303 661 8,547 5,336 6 10,473 - $ 1,598,085	General and Administrati ve Expenses Research and Development Expenses $ - $ - 189,801 37,328 - - 65 18 19,506 34 1,223 27 17,280 3,912 8,718 - 29,519 8,991 844 650 1,018 1,173 51,286 31 3,992 1,193 3,459 137 7,395 27 2,960 900 2,034 1,405 11,804 - 57,925 26,285 (23,195) - $ 385,634 $ 82,111	Amount $ 932,792 567,167 134,519 22,369 19,540 27,612 56,768 10,680 56,556 20,063 7,174 77,859 16,269 3,899 8,083 12,407 8,775 11,810 94,683 (23,195) (Note) $ 2,065,830

Note: Transferred to manufacturing expenses.

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SCHEDULE 16

STANDARD FOODS CORPORATION

SCHEDULE OF LABOR, DEPRECIATION AND AMORTIZATION BY FUNCTION FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (In Thousands of New Taiwan Dollars)

Item Labor cost Salary and bonus Labor and health insurance Pension Remuneration of directors Others Depreciation Amortization		**For the Year Ended December 31 **	**For the Year Ended December 31 **
	2022	Total $ 940,730 92,420 41,568 8,237 66,479 $ 1,149,434 $ 212,027 $ 20,985	2021
	Classified as Operating Costs Classified as Operating Expenses $ 425,735 $ 514,995 43,709 48,711 15,967 25,601 - 8,237 31,193 35,286 $ 516,604 $ 632,830 $ 155,471 $ 56,556 $ 10,305 $ 10,680		Classified as Operating Costs Classified as Operating Expenses $ 431,595 $ 552,610 42,582 46,050 28,650 31,555 - 16,716 31,270 34,146 $ 534,097 $ 681,077 $ 169,049 $ 57,580 $ 8,987 $ 6,391	Total $ 984,205 88,632 60,205 16,716 65,416 $ 1,215,174 $ 226,629 $ 15,378

Note 1: As of December 31, 2022 and 2021, the Company had 1,065 and 1,008 employees, respectively, of which 6 and 5 directors were not concurrently appointed as employees, respectively.

• Note 2: The average employee benefit expense for 2022 is $1,078 thousand. (“Total amounts of current year employee benefit expenses - Total amounts of remuneration of directors”/“The number of current year employee - The number of directors who are not concurrent employees”).

• Note 3: The average employee benefit expense for 2021 is $1,195 thousand. (“Total amounts of period year employee benefit expenses - Total amounts of remuneration of directors”/“The number of period year employee - The number of directors who are not concurrent employees”).

• Note 4: The average employee salary expense for 2022 is $888 thousand. (Total amounts of current year employee salary expenses - “The number of current year employee - The number of directors who are not concurrent employees”).

Note 5: The average employee salary expense for 2021 is $981 thousand. (Total amounts of period year employee salary expenses/“The number of period year employee - The number of directors who are not concurrent employees”).

• Note 6: The change in average employee salary expenses is -9.48%. (“Total amounts of current year average employee salary expenses - Total amounts of period year average employee salary expenses”/Total amounts of period year average employee salary expenses).

Note 7: The supervisors salary expense for 2022 is $0.

Note 8: The supervisors salary expense for 2021 is $0.

• Note 9: The Company’s payment fees are determined and regularly reviewed by the Remuneration Committee, and in addition to referring to the usual level of payment of the same industry, and to consider the reasonableness of the correlation with individual performance, company operating performance, payment methods and future operational risks. It shall be implemented after the adoption of the report to the board of directors; those who are assigned items of the surplus distribution table shall also be expected to report to the shareholders' meeting for adoption.

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